1Q15 Review of M&A and Investment Activity in the Marketing, Media, and Technology Industries: 768 Transactions Totaling a Reported $23.

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1 60 Broad Street, 38 th Floor New York, NY Fax FOR IMMEDIATE RELEASE Contact: Amy LaBan Q15 Review of M&A and Investment Activity in the : 768 Totaling a $23.6 Billion Digital Media/Commerce was the Most Active Segment with 321 Followed by Marketing Technology with 225 ; Digital Media/Commerce was the Highest Value Segment with $12.6 Billion in Deal Value March 31, 2015 New York, NY During 1Q15, Petsky Prunier tracked 768 M&A and investment transactions for a total of $23.6 billion across five broad segments: Digital Media/Commerce, Digital Advertising, Marketing Technology, Agency & Marketing Services, and Traditional Media. Digital Media/Commerce and Marketing Technology were the most active segments with 321 and 225 transactions, respectively, while Digital Media/Commerce was the highest reported value segment totaling $12.6 billion. MARKETING, MEDIA, TECHNOLOGY AND SERVICE INDUSTRIES MARKETING, MEDIA, TECHNOLOGY AND SERVICE INDUSTRIES 1H12 Marketing, M&A AND Media, INVESTMENT and & Technology Industries ACTIVITY M&A 1Q14-1Q15 AND INVESTMENT 1Q12-1Q13 M&A ACTIVITY: 1Q11-2Q12 ($ and in Millions) ($ Investment in Billions) Activity ($ in Billions) ($ in Billions) MARKETING, Marketing, MEDIA, Media, TECHNOLOGY and Technology AND SERVICE Industries INDUSTRIES 2Q12 1Q15 M&A M&A AND and INVESTMENT Investment Activity ACTIVITY ($ in Millions) Digital Media/ Commerce $12,598 DOLLAR VALUE $102.3 Traditional Media $2,644 Ono S.A./ Vodafone $75.1 WhatsApp/ Facebook Time Warner Cable/ Comcast DEAL VOLUME 765 DirecTV/ AT&T 726 $ $27.0 $ Digital Advertising $1,867 Marketing Technology $4,787 Agency & Marketing Services $1,710 1Q14 2Q14 3Q14 4Q14 1Q15 M&A Activity Acquisitions accounted for 44 percent of total transactions and 47 percent of reported value in 1Q15. Digital Media/Commerce was the most active M&A segment with 102 transactions, of which 23 were reported for $4.3 billion in value. Quarterly activity in Digital Media/Commerce was up 46 percent, while value was relatively flat. The most active subsegments were ecommerce with 35 acquisitions and Mobile Content/Apps with 27 acquisitions. M&A transactions in the Digital Media/Commerce segment announced during 1Q15 included: Expedia s $1.3 billion pending purchase of online travel company Orbitz, as a follow-up to its $280 million planned purchase of travel and leisure services provider Travelocity The $475 million purchase of weight loss and nutrition tracking app developer MyFitnessPal by Under Armor King Digital Entertainment s $150 million acquisition of mobile gaming company Z2 The $134 million acquisition of food delivery company Eat24 by Yelp Page 1

2 GrubHub s purchases of restaurant delivery services companies DiningIn and Restaurant on the Run at a combined value of $75 million Marketing Technology was the second most active M&A segment with 85 transactions, of which 21 were reported for $2.2 billion in value. Quarter-over-quarter activity was flat, and reported value was up 57 percent. The most active subsegment was Content Management with 15 acquisitions, up from 11 in 4Q14. in the segment announced during 1Q15 included: Hitachi Data Systems $500 million acquisition of open source business intelligence solutions provider Pentaho PayPal s $280 million acquisition of Paydiant, a licensor of branded wallet app technology for retail chains The $200 million acquisition by Nielsen of exelate, a data and technology company that helps digital advertisers better target online advertising NeuLion s $63 million acquisition of digital video solutions company DivX Twitter s $45 million purchase of Niche, which connects advertisers with social media stars Activity in the Traditional Media segment was up 58 percent from the previous quarter with 41 transactions, of which 11 were reported for $2.3 billion in aggregate value. Activity was spread across the segment, with five deals occurring in the Broadcast Television subsegment, including three reported for $1.2 billion in value. in the segment announced during 1Q15 included: TIV s $1.2 billion acquisition of Netherlands-based reality TV production company Talpa Media EBSCO Information Services $300 million purchase of book distributor Baker & Taylor New Media Investment Group s $280 million purchase of newspaper operator Halifax Media Group from Stephens Capital Partners M&A activity in the Digital Advertising segment was up 60 percent compared to the previous quarter with 56 deals, of which 14 reported $842 million in value. The Online Lead Generation, Ad Networks/Exchanges, and Digital Video subsegments together accounted for 55 percent of the segment s total M&A activity with 14, 11, and six transactions, respectively. in the segment announced during 1Q15 included: Zomato s $52 million acquisition of online reservation services provider Urbanspoon Online wedding marketplace WeddingWire s $50 million acquisition of Spain-based competitor Wedding Planner Nexstar Broadcasting Group s $33 million purchase of programmatic online video advertising specialist Yashi Investment Activity There were 428 investments during 1Q15, of which 397 reported $12.6 billion in value. value for venture and growth capital investments was flat quarter-over-quarter, while activity was down eight percent. Eighty-four percent of investments was made in the Digital Media/Commerce and Marketing Technology segments with 219 and 140 deals announced, respectively. Digital Media/Commerce was the highest value segment during the quarter with 204 transactions worth $8.3 billion in reported value. Investments in the segment during 1Q15 included: An additional $1 billion raised by Uber, expanding its Series E round total to $2.8 billion at a reported valuation of more than $40 billion Tiger Capital Partners and Alibaba s $700 million investment in China-based taxi-hailing app developer Kuaidi Dache Food ordering network Delivery Hero s $568 million minority investment from Rocket Internet The Rakuten-led $530 million round in ride-sharing service Lyft Andreessen Horowitz and Bessemer Venture Partners co-led $367 million investment in Pinterest, reportedly valued at $11 billion The $220 million investment made by Kleiner Perkins Caufield & Byers in on-demand grocery delivery startup Instacart at a reported valuation of $2 billion ecommerce company Jet s $140 million round of funding led by Bain Capital Ventures with participation from Accel Partners and General Catalyst Partners Page 2

3 Redpoint Ventures and Insight Venture Partners $110 million investment at a reported valuation of $1.1 billion in Nextdoor, a social network focused on connecting residents within neighborhoods Marketing Technology was the second most active investment segment with 140 transactions, of which 132 reported $2.6 billion in value. Analytics & Targeting was the most active subsegment with 37 investments, of which 33 reported $652 million in value. Compared to the previous quarter, value in the segment increased 59 percent, while volume was down 13 percent. The Content Management subsegment had 18 investments at a reported $389 million in aggregate value, resulting in quarter-over-quarter growth in value of 166 percent. Investments in the Marketing Technology segment during 1Q15 included: FMR s $130 million investment, with participation from Wellington Management and Institutional Venture Partners, in Dataminr, which mines real-time data from Twitter and other public sources The $80 million funding by Valiant Capital Management and Sequoia Capital in India-based FreeCharge, which offsets consumers mobile charging costs with discount coupons ecommerce solutions provider Volusion s $55 million investment from Main Street Capital Mithril Capital Management s $50 million investment in cloud commerce solutions provider AppDirect Investments in the Digital Advertising segment accounted for 13 percent of all investments during the quarter. There were 57 investments, of which 50 were reported for approximately $1 billion in value. The most active subsegments were Digital Video and Mobile Marketing with 12 and 10 investments, respectively. Online Lead Generation was the highest value subsegment with seven investments, of which five were worth $271 million in reported investment value. Investments from the segment during 1Q15 included: Fidelity Management and Research s $117 million funding of content discovery platform Taboola Tech-enabled customer acquisition company Red Ventures $250 million round of funding at a reported valuation of $1 billion from Silver Lake Partners Homeowner and home professional vertical network Porch.com s $65 million round of funding from Valor Equity Partners with participation from Founders Fund and Battery Ventures Japan-based app monetization platform Metaps $36 million from Fidelity Growth Partners Buyer & Investor Activity 1Q15 Most Active Strategic Buyers by Buyer Representative Targets TripAdvisor 5 lens.nl, MyTable, RestOpolis, SeatMe Amsterdam, ZeTrip Dentsu 3 BWM Group, Soap Creative, WATConsult Google 3 Launchpad Toys, Odysee.com, Toro Publicis 3 Epic Communications, RelaxNews, Monkees Twitter 3 Niche, Periscopeapp.tv, ZipDial Expedia 2 Orbitz, Travelocity.com Facebook 2 Wit.ai, TheFind Rakuten 2 Deep Forest Media, OverDrive Strategic buyers accounted for 94 percent of all control transactions in 1Q15. Of the 319 strategic deals announced, 72 were reported for $10.5 billion in value. Compared to 4Q14, strategic buyer volume increased 23 percent, while value decreased nine percent. Nearly one-third of strategic transactions were in the Digital Media/Commerce segment, up slightly from 26 percent in 4Q14, while Marketing Technology accounted for 24 percent of activity. Buyout firms completed 21 acquisitions in 1Q15, of which five were reported for $538 million in value. More than 70 percent of buyout transactions were in the Marketing Technology and Traditional Media segments with nine and six deals, respectively. Buyout transactions announced in 1Q15 included: Page 3

4 Providence Equity Partners $307 million acquisition of trade show and event organizer Clarion CPBE Capital s $76 million acquisition of online furniture retailer Sofa.com at a reported valuation of 2.5x revenue 1Q15 Most Active Investors by Investor Representative Targets Sequoia Capital 15 App Annie, Cheyipai, Ele.ne, Grabhouse.com, Grofers, HomeLane.com, Moovit, PepperTap Tiger Global Management 9 99Taxis, CaratLane.com, Dianrong.com, Kuaidi Dache, MoonFrog Labs, News In Shorts Google Ventures 7 Commonfloor.com, Glassdoor, Kobalt, Jet, Move Loot, Norht Technologies, Bento Labs Bessemer Venture Partners 6 Hungama Digital, Instructure, ntoggle, Pinterest, Vidyard, Wandera New Enterprise Partners 6 Brand Metrics, Do, FiftyThree, Raise Marketplace, ScoutRFP, Swiftype FRM 5 Appsflyer, Dataminr, Moda Operandi, Retty, Uber Great Oaks Ventures 5 Choozle, Fabric, Locket, UrbanStems, Wigo Matrix Partners 5 Namely, Lamabang, Stayzilla, Mofang.com, Lizhi.FM Venture and growth capital investors accounted for 428 transactions, of which 397 were reported for $12.6 billion in value. Compared to 4Q14, investment volume was down eight percent, while value was flat. Sequoia Capital and Tiger Global Management were the most active investors during 1Q15, completing 15 and nine investments, respectively. IPO Activity Digital advertising services provider Maxpoint Interactive completed its IPO in 1Q15, raising $75 million and pricing in the middle of its filing range. Etsy and China-based companies Sogou and Wowo submitted their IPO filings in 1Q15 but have yet to price. *All values as of 12pm ET on 3/30/15. Transaction values include only reported up-front cash payments and do not account for any potential future performance-based compensation. Page 4

5 Quarterly M&A and Investment Activity by Segment Most Active Digital Media/Commerce s Value ecommerce 69 3, , ,588 57% 108% Mobile Content/Apps 97 4, , ,757 (6%) (30%) Social Media/Apps 45 1, ,086 (49%) (50%) Classifieds/Auctions/P-to-P , ,053 36% 13% Niche Content 15 1, ,801 0% (42%) Gaming ,487 67% (79%) Web Search/Portals ,057 NM NM Total , ,598 1,528 65,891 15% 3% Most Active Digital Advertising s Digital Video ,857 (28%) 37% Vertical Search ,685 (25%) (52%) Mobile Marketing ,030 19% (13%) Local Search ,742 (17%) (11%) Ad Networks/Exchanges ,117 42% (68%) Comparison Shopping (33%) (94%) Digital Promotion/Coupon ,829 (17%) (94%) Online Lead Generation , % 87% Search Marketing ,069 (100%) NM Services % NM Game Advertising (100%) (100%) Affiliate/CPA Network ,404 (100%) (100%) Total 111 3, , ,488 2% (49%) Most Active Marketing Technology s Analytics & Targeting ,909 (17%) 128% Content Management ,817 3% 84% Mobile Technology ,284 10% 111% Social Technology ,074 (64%) (66%) Commerce Management ,092 (35%) 84% BI Tools ,794 (33%) 76% CRM ,462 (32%) (64%) SFA/Lead Management % 526% Search & Discovery % (7%) Subtotal 203 2, ,856 1,068 20,515 (17%) 62% Other ,552 24% 43% Total 248 3, ,787 1,320 27,067 (9%) 58% "Other" includes Ad Serving, Content Delivery Network, Creative Production Platform, /Messaging Platform, Market Research Software, Marketing Asset Management, Media Management System, Product/Price Software, Search & Discovery, Segmentation/Data Mining, SEM/SEO Tools, Teleservices/eServices, Web to Print, and Website Creation/Hosting Page 5

6 Most Active Agency & Marketing Services s Digital Agency 30 3, ,426 (17%) (98%) Public Relations % (100%) Loyalty/Retention (38%) (56%) Social Agency (100%) NM General Agency (33%) (100%) Database/Analytics (33%) 108% Marketing Consulting % (50%) Branded Communications (50%) NM DM Agency % (100%) Subtotal 59 4, ,576 (20%) (95%) Other , ,153 73% 810% Total 70 4, , ,729 (6%) (66%) "Other" includes Healthcare Agency, B-to-B Agency, Promotion Agency, Retail Services, Specialty Agency, Design Agency, Performance/Contract Sales, Product/Price Consulting, Ad Speicalty/Premiums, and List Broker/Manager Most Active Traditional Media s Entertainment Media , % 20% B-to-B Media 10 1, ,029 (10%) (73%) Broadcast Television , ,959 (38%) 344% Consumer Magazine Publishing % (83%) Newspaper Publishing ,482 (25%) (54%) Digital Place-Based Media (100%) (100%) Consumer Book Publishing , % 7,597% Radio (100%) (100%) Cable & Satellite Television ,819 NM NM Traditional Outdoor , % (100%) Yellow Pages NM NM Total 31 3, , ,764 39% (13%) About Petsky Prunier LLC Petsky Prunier ( is one of the leading investment banks in the technology, media, marketing, ecommerce, and healthcare industries. Our firm s mergers and acquisitions and private placements advisory services reflect a unique blend of product specialization and industry expertise. Together with strategic consulting firm Winterberry Group, a Petsky Prunier company, our organization represents one of the largest industry-specific advisors providing strategic and transactional services. In addition, we offer international reach through our partnership with Altium. Established for more than 20 years and privately owned, Altium is an international investment bank operating from eight offices across Europe. Securities transactions are processed through Petsky Prunier Securities LLC. Page 6