Investment Bankers
Media Technology – Strategic Industry Analysis September 2016
MEMBER FINRA AND SIPC
Jonathan Hodson-Walker 508.651.2194
[email protected]
Gwendalyn Moore 508.651.8135
[email protected]
Bryan Prohm 508.720.3410
[email protected]
Dominic Mangano 508.545.1380 x118
[email protected]
32 Pleasant Street Sherborn, MA 01770 www.silverwoodpartners.com
SILVERWOOD PARTNERS Specialized boutique investment bank focused on transaction advisory across three core industries
TECHNOLOGY, MEDIA & TELECOM • • • • • •
Mobile & Wireless Internet of Things Big Data & Analytics Artificial Intelligence Media Technology Consumer Technology
CONSUMER • Food and Beverage Products • LOHAS • Natural • Organic • Lifestyle Products • Personal Care • Performance Apparel • Sports Equipment
COPYRIGHT SILVERWOOD PARTNERS 2001-2016
HEALTHCARE • • • •
HC Information Technology HC Information Services Technology Enabled Services Outsourced Medical Device Technology • OTC/Consumer/Pharma
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DEEP MEDIA TECHNOLOGY EXPERTISE
COPYRIGHT SILVERWOOD PARTNERS 2001-2016
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RELATIONSHIPS, REPUTATION, RESULTS Silverwood Partners – Premier Reputation within the Technology Industry •
•
•
Maintains an active dialogue with large technology buyers and private equity firms with an interest in the technology industry Proprietary industry knowledge base – constantly updated by active presence at industry tradeshows and a growing network of industry advisors Industry analyses are widely disseminated to over 10,000 contacts throughout the institutional community
•
•
•
Organizes and hosts networking events at major industry tradeshows – attendees typically include key technology company executives and investors focused on the technology sector Presents unique opportunity for industry professionals to interact and network in a collegial setting To sign up for Silverwood’s weekly newsletter, follow the link below:
Media Technology Weekly Newsletter
Attendance at All Major Tradeshows
Weekly email that details industry relevant financing information: • M&A transactions • Private placement transactions • New investment funds • And more…
COPYRIGHT SILVERWOOD PARTNERS 2001-2016
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SILVERWOOD INDUSTRY ADVISOR PROGRAM – INTERESTED? Formal Consulting Affiliation with Silverwood Partners ─ Personal Business Development Opportunity
Industry Advisor
SWP Core Team
─ Revenue Opportunity ─ Board Member Opportunities
Access + Action
─ Investment Opportunities ─ Networking Opportunities ─ No Costs, Conditions, or Commitments
Click Link to Learn More About Program
Contact Silverwood Partners to Discuss Interest and Approach Jonathan Hodson-Walker
Managing Partner 508-651-2194
[email protected]
Kaye Pezzini
CLIENT ENAGEMENT
Industry Advisor Liaison 508-545-1380x 153
[email protected]
COPYRIGHT SILVERWOOD PARTNERS 2001-2016
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SILVERWOOD – PRINCIPAL DIFFERENTIATORS
Industry Expertise
• Leading technology-focused boutique investment bank • Understand industry dynamics– no learning curve; immediately effective
Industry Relationships
• Active dialogue with industry professionals • Constantly refresh contacts • Call from Silverwood implies competitive strategic deal
Industry Commitment
• Active in focus sectors for almost two decades • Senior level commitment to each deal • Presence at all major industry tradeshows
Results Oriented
• Focused on M&A and private placements – committed to achieving best available result • Process expertise; negotiation expertise
Worldwide Reach
• Experience in multinational deals • Active contact with international companies and investors
COPYRIGHT SILVERWOOD PARTNERS 2001-2016
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SILVERWOOD STRATEGIC HEAT INDEX Red Hot: High Strategic Interest
Sector:
ACQUISITION & PRODUCTION
POST PRODUCTION
Moderate: Average Strategic Interest
CONTENT & COMMUNICATIONS INFRASTRUCTURE
STORAGE
AUDIO
Cold: Less Strategic Interest
SYSTEM AUTOMATION & CONTROL
PLAYOUT & DELIVERY PLATFORMS
TEST, QC & MONITORING
Camera Lenses
Graphics/ Branding
Hardware Based Links
Intercom/ Talkback
Playout Servers
Library and Storage Management
Transmitters
Multiviewers
Cameras
Transcoding
Routing Switchers
Microphones
Production Servers
Business Management Systems
Offline/ Streaming Video
Test Measurement
Mobile Video Transport
Video Editing Software
Modular Interfacing
Monitors
Near-line/ Off-line Storage
Playout Automation
Encoders
IP Video Transport
Consoles
Workflow Automation
Integrated Playout
Processing/ Monitoring
Digital Asset Management
Content Recognition, Second Screen
Drones
Switchers
Content Security
SaaS, Software, Technology Enabled Services
COPYRIGHT SILVERWOOD PARTNERS 2001-2016
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SILVERWOOD MEDIA TECHNOLOGY INDUSTRY MODEL Acquisition & Production
Cameras - ENG
Post Production
Graphics & Branding
Content & Communications Infrastructure Communication Links
Audio
Storage
Consoles
Near-line/Off-line and Archival Storage
System Automation & Control Broadcast Business Management Systems
Playout & Delivery Platforms Integrated Playout (Channel in a Box)
Test, QC & Monitoring
Multiviewers
/
Routing Switchers
Cameras - Studio
Processing/ Monitoring
Playout/ Transmission Servers
Test & Measurement
Library & Storage Management Off-line / Streaming Video Delivery Platforms
Ingest/ Transcoding/ Streaming
Signal Processing/ Interfacing/ Modular
Playout Automation
Intercom/ Talkback
Camera Lenses
Transmission Encoders Production Servers
Microphones
Production Switchers Video Editing
Video Transport
Workflow/ Asset Management
Transmitters
Monitors (speakers)
COPYRIGHT SILVERWOOD PARTNERS 2001-2016
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SILVERWOOD TOP 10 BROADCAST AND MEDIA TECHNOLOGY TRENDS
1 2 3 4 5
IP Video– The NextFrontierin Live VideoProduction Transition to IP to create more agile live video production workflows
Virtualization– Evolutionof SaaS in VideoProduction Cloud computing helping to promote growth of virtualized production workflows
OTT – ContinuedFocus,Ongoing Opportunity Live and linear OTT creating opportunities for video technology providers
VideoAdvertising– GrowthOf Digital AD Spend Growing viewership of digital video driving an increase in digital video ad budgets
ProgrammaticTV Advertising– Significant GrowthPotential Strength of digital programmatic building opportunity for programmatic in TV
6 7 8 9 10
IncreasingDemandfor 4K UHD Video content producers scaling UHD video capabilities to meet viewer demand
Virtual Reality– Building AnImmersiveMultimediaPlatform Virtual reality market approaching key growth inflection point
360 DegreeVideo– Implicationsfor Camera Technology Innovations in camera technology preparing 360 degree video for mainstream
SocialMediaVideo – The New Platform for Video More and more video continues to be viewed as content availability increases
GrowingPresenceof Big IT in VideoProduction Big IT’s impact on video technology industry increasing purchase uncertainty
COPYRIGHT SILVERWOOD PARTNERS 2001-2016
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IP VIDEO – THE NEXT FRONTIER IN LIVE VIDEO PRODUCTION The Ability to Produce over IP-Networks Stands to Improve Broadcasters’ Workflows, But Expect Adoption to be Phased In •
•
• •
•
The transition from SDI to IP-based systems presents live video broadcasters with a variety of benefits specifically in the realm of production scalability and flexibility – outsourcing production to any software or hardware-based system connected to the IP network will effectively remove peak facility load limitations Industry experts largely expect the transition from SDI systems will be complete in the next five to ten years1 – market research has found that approximately 80% of broadcasters are two to over ten years away from fully converting to IP-based operations2 Various concerns continue to drive the anticipated slow transition to IP-based workflows – top drivers include cost, operational disruptions and security2 A current lack of standards for producing over an IP network present additional challenges for broadcasters, especially in regards to interoperability – to help solve this lack of sufficient standards, various protocols have been created by technology vendors to promote an easy adoption of IP-based workflows Significant opportunity exists for technology providers offering IP enabled solutions to capitalize on momentum building for IP-based workflows 1. TVTechnology.com 2. Imagine Communications
Non-Standardized Video-Over-IP Protocols
Surveyed SDI to IP Conversion2 Transition to IP-Based Workflows
Developed by NewTek, focused on capitalizing on the bi-directional connectivity capabilities of IP. A royalty-free SDK with over 200 developers
57% cited
6% 7% 13%
A protocol introduced by Evertz, moves uncompressed video signals over MPEG-2 transport streams. Separates video, audio and metadata transport into three streams for low latency data flow
Top Broadcaster Concerns for IP
33%
infrastructure upgrade expense
55% cited
operational disruptions 41%
A non-profit trade alliance that promotes open IP standards. Open standards designed on SMPTE 2022-6, VSF TR-03 and VSF TR-04
Within a Year Two to Five Years More than Ten Years
COPYRIGHT SILVERWOOD PARTNERS 2001-2016
Within Two Years Five to Ten Years
41% cited security
PAGE 10
VIRTUALIZATION – EVOLUTION OF SAAS IN VIDEO PRODUCTION
•
•
•
•
Adoption of virtualized workflows presents many benefits and minimal challenges – benefits include greater scalability for quick deployment of new content, lower upfront costs and offsite backup of content Certain video production tasks are better positioned to take advantage of SaaS functionality than others; however, it is expected that in the future the majority of production capabilities will be SaaS ready – market research indicates that 52% of broadcasters believe encoding and transcoding is the first operation they would move to a cloud environment1 Through the use of virtualized offerings, broadcasters are able to move video production tools offsite and merge with existing IT infrastructure – hosting production applications on the cloud will help with this transition SaaS-based production tools can be deployed in both public and private clouds – it is expected that hybrid cloud models will be deployed in video production environments; the most data intensive computing and storage applications will be completed using a private cloud while everything else will occur in a public cloud Improvements in security and data processing capabilities are expected to drive increased adoption of public cloud technology – forecasts expect that 56% of cloud workflows will occur on a public cloud by 20192; the broadcast video industry is expected to follow this trend
60.0 50.0
% Likelihood
•
Applications to be Converted to Cloud1
40.0 30.0 20.0 10.0 0.0 Encoding,
Advertising
Playout
Editing
Production
Transcoding
Master
Signal
Control
Routing
None
Cloud Installed Workflows Forecast2 300.0
Installed Workflows (M)
Advancements in Cloud Computing Helping to Promote Growth of SaaS-based, Virtualized Video Production Workflows
250.0 200.0 150.0 100.0 50.0 0.0 2014
2015
2016
Public Cloud
2017
2018
2019
Private Cloud
1. Imagine Communications 2. Cisco Global Cloud Index
COPYRIGHT SILVERWOOD PARTNERS 2001-2016
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OTT – CONTINUED FOCUS, ONGOING OPPORTUNITY Increasing Presence of Live and Linear OTT Continuing to Create an Opportunity for Professional Video Technology Providers
•
• •
•
OTT video consumption continues to grow and generate more revenue – global OTT subscriptions expected to reach 383 million and generate nearly $65 billion in revenue by 2021, representing a five year CAGR of 14.0%1 Driving the expected growth of OTT is an increasing demand from consumers for OTT content – market studies have found that 76% of consumers are more or equally likely to watch OTT/SVOD content than cable TV2; concurrently, major pay TV providers have shed over one million subscribers in the last year 3 Expansion of OTT is not expected to fully cannibalize traditional TV but rather be complementary; creating a substantial opportunity for technology providers OTT is expected to help expedite the adoption of virtualized production technologies, as certain aspects of OTT delivery can be completed easier through cloudbased tools – for example, transcoding to the growing amount of OTT ready screens is achieved more efficiently through the use of virtualized, cloud-based tools The SaaS-based nature of virtualized offerings fall more in line with the business models of OTT providers who do not broadcast on a 24/7 basis 1. Digital TV Research 2. Clearleap 3. Leichtman Research, represents 95% of US Pay TV
Global OTT Subscription Revenue ($B)1 $64.78
Selected OTT Platform Providers Linear
Major Pay TV Subscription Change3 96.0
Live
95.5
Subscriptions (M)
•
$29.41
95.0 94.5
94.0 93.5 93.0
$4.47
92.5
2010
2015
2021 COPYRIGHT SILVERWOOD PARTNERS 2001-2016
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
2014
2014
2014
2014
2015
2015
2015
2015
2016
2016
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VIDEO ADVERTISING – GROWTH OF DIGITAL AD SPEND Advertisers’ Budgets for Digital Video Continue to Increase as a Result of Increased Viewership and Higher ROI •
•
•
•
As viewership for digital video climbs via increasing popularity for OTT, SVOD and other digital platforms, advertisers are increasing investment in digital video advertisements – digital video advertising spend expected to grow at a CAGR of 14.0% through 2020 compared to 2.2% for traditional TV advertising1 Furthermore, market research has found that 60% of advertisers plan to increase their spend in digital and mobile video whereas only 30% plan to increase their spend in broadcast or cable video2 – overall, optimism is higher for digital video Apart from the growing viewership of digital video; advertisers are increasing sentiment for digital due to the higher ROI it provides – advantageous benefits include greater in depth viewership data/analytics, increased viewer targeting and stronger viewer engagement Innovative TV advertisement technological concepts are beginning to gain traction in an effort to compete with digital video advertising – considering that 68% of US adults use mobile devices while watching TV, the incorporation of mobile with TV advertising is one concept that has seen success
1. eMarketer 2.IAB
Forecasted US Video Ad Spend by Type 1
Advancements in Video Advertising Technology
90.0
Through the use of mobile enabled polls, games and clickable ads, Megaphone TV helps to increase viewer engagement level with video content and advertisements
80.0 70.0
Spend ($B)
60.0 50.0
TVision uses computer vision technology to anonymously and passively collect viewer behavior, attention and emotional affect to advertisements and video programming
40.0 30.0 20.0 10.0 0.0
2016
2017
TV
2018
2019
2020
Torrential partnered with LiveRamp to add improved data to its multiscreen advertising solutions
Surveyed Video Advertising Spend2 Increase Spend Digital/Online Video
Mobile Video
63%
34%
3%
62%
35%
2%
30%
Broadcast/Cable
0.0
20.0
Maintain Spend
51% 40.0
60.0
19% 80.0
100.0
120.0
Action Likelihood
Digital Video
COPYRIGHT SILVERWOOD PARTNERS 2001-2016
PAGE 13
PROGRAMMATIC TV ADVERTISING – SIGNIFICANT GROWTH POTENTIAL
•
•
•
•
•
•
The rise of programmatic advertising continues to be one of the more potentially impactful advancements in TV advertising – programmatic TV ad spend is expected to reach levels in excess of $4 billion by 2018, a significant increase over the $0.3 billion spent in 20151 Growth expectations are not unwarranted considering that programmatic accounted for over 50% of total digital video ad spend in 2015 – at less than 1% of TV advertising spend, programmatic has a significant potential in TV1
Digital and TV Programmatic Ad Spend1 10.0
8.0
Ad Spend ($B)
Value of Traditional TV Advertising Can Be Increased Through the Help of Programmatic Technology
Driving growth are the various benefits promoted by programmatic – 58% of advertisers believe audience targeting is the most beneficial opportunity promoted by programmatic advertising2, as it helps advertisers reach more specific, niche audiences through previously unused data sources The potential to combine the benefits enabled by programmatic advertising with the significant percentage of video viewership allocated to TV (78% of average daily viewership1) is a compelling opportunity for advertisers Continued interest in programmatic advertising technology companies in the private financial markets By preserving TV advertising spend through the use of programmatic technology, broadcasters’ facility budgets are expected to remain stable or strengthen, and in turn, create an attractive market where technology providers can succeed in both digital and traditional broadcast video
TV
TV programmatic advertising expected to reach $4.4B by 2018 (95.7% CAGR)
Digital
$7.6 $5.5
6.0
4.0
$3.0 $2.2
2.0
$0.3
$0.7
0.0 2015
2016
2017
Notable Recent Programmatic Advertising Transactions3
Acquisition
& Others Investors
Investment
Investment
1. Emarketer 2. WideOrbit 3. Pitchbook
COPYRIGHT SILVERWOOD PARTNERS 2001-2016
PAGE 14
INCREASING DEMAND FOR 4K UHD Broadcasters and Content Producers Quickly Scaling Ultra HD Video Capabilities to Meet Growing Consumer Demand Over the next five years broadcasters and content producers are expected to invest significant resources in producing 4K UHD video – market research has found that 88% of broadcasters and content producers expect to launch 4K UHD content by 20201
•
Content creators feel confident in their investment in 4K UHD as they believe consumers are willing to pay 10-30% more for the higher video quality content1 – additionally, the adoption of UHD TVs expected to reach nearly 50% of the North American market by 20202
•
Broadcasters’ top hesitations towards the adoption of 4K UHD content are largely focused on technological limitations – 4K video requires 250% more bandwidth than regular HD video3
•
Technology providers offering 4K UHD capable hardware and software can expect to generate strong demand over the next few years as broadcasters and content producers capitalize on increasing viewer demand
•
Top Concerns of 4K UHD Adoption1
Global UHD TV Adoption2 50
Additional 4K UHD Forecasts: •
% Adoption
40 •
Global 4K set-top box market to grow to $3.65B by 20244
of broadcasters believe device capabilities will impact ability to successfully deliver 4K UHD content
In February 2016 Netflix announced it will be in a position to stream roughly 600 hours of 4K video content by the end of 2016
61%
of broadcasters believe lack of bandwidth could impact delivery of 4K UHD content
AT&T partnered with NBCUniversal to deliver 4K video footage of the 2016 Summer Olympics; events were delivered on a oneday delay
55%
of broadcasters are concerned that the business case does not justify investment
63%
121M 4K OTT users by 20215
30
20
10
0 2014
Global
2015
2016
North America
2017
2018
Western Europe
2019
2020
Recent Developments
UFC partnered with Neulion to live stream 4K footage of UFC 200 to select TVs via Google Play’s UFC app
Asia Pacific
1. SNL Kagan 2. Strategy Analytics 3. TVTechnology 4. Grand View Research 5. Juniper Research
COPYRIGHT SILVERWOOD PARTNERS 2001-2016
PAGE 15
VIRTUAL REALITY – BUILDING AN IMMERSIVE MULTIMEDIA PLATFORM Virtual Reality Market Approaching Key Growth Inflection Point •
Total Augmented and Virtual Reality VC investment hit $1.3 billion in the first half of 2016 over 76 deals, versus $700 million invested in all of 2015, with investments diversifying beyond hardware and peripherals into advertising, apps, distribution, games, marketing, video and solutions/services1
•
The virtual reality market (hardware and software) estimated to generate revenue of ~$40 billion by 2020 (77% CAGR)2
•
Consumer facing VR content and hardware leading market growth – will require advancements in “backend” VR production tools
•
Immersive and spherical video technology is generating strong interest from leading media and technology companies Technological advancements in both creation and consumption are still needed to maximize user engagement – e.g. wearables, prosthetics, visualization technology, dedicated VR content and production tools
Virtual Reality: Diverse Anticipated Use Cases; Many Inputs 3
Select Virtual Reality M&A Transactions
Worldwide VR Revenue by Type, 2016-2020E 50.0
Games
Health
Tactile
Videos
Adding New Sensory Inputs Marketing
Social
Vision
Brain
Increasing Diversity of Use Cases
40.0
Revenue, $B
•
Audio
Hardware Software
30.0 20.0
Smell
10.0 Travel
Taste
0.0 2016E
1. CB Insights 2. SuperData 3. CCS Insight
COPYRIGHT SILVERWOOD PARTNERS 2001-2016
2017E
2018E
2019E
2020E
PAGE 16
360 DEGREE VIDEO – IMPLICATIONS FOR CAMERA TECHNOLOGY Method
Video Stitching
Pros
• Creates accurate representation of reality
Cons
Innovations in Camera Technology are Helping to Prepare 360 Degree Video for Mainstream Acceptance
Examples
• Requires more bandwidth
•
• Expensive equipment •
• One camera Wide Angle
• Minimal data/memory constraints
• Potentially low quality, distorted video
•
• Requires innovation to be mainstream ready
•
Recent Announcement in the News
360 degree video presents content produces with a unique opportunity to create never-before-seen, immersive content; innovation in camera technology is helping producers deliver content to meet the growing demand To date, most 360 degree video has operated as a niche in the professional video industry delivered in short form, low quality formats The ability to capture professional quality video in 360 degrees is one of the largest hurdles impacting mainstream acceptance of this new video format Two primary methodologies exist for capturing 360 degree video content, both have seen recent innovations that are helping to improve the quality of 360 degree video •
Nine Blackmagic Video Assist monitors and Micro Studio cameras used to create 360 degree footage at Chromat’s Fall/Winter 2016 runway show Google announced that it is working with IMAX to produce a cinema-quality 3D camera rig via its JUMP VR content creation system
Facebook publicly released blueprints for a 17 camera 360 degree video device on Github named ‘Facebook Surround 360’
•
•
•
Video Stitching: Method of combining footage from multiple cameras, typically creates highest quality 360 degree footage Wide Angle Camera: Single camera with wide range of view; single video stream enables smooth addition to existing production workflows
Innovations in regards to camera size continue to be another important factor in regards to improving 360 degree video – devices made of larger, better quality cameras cannot effectively capture the immersive nature of 360 degree video Expect improvements in cameras to advance in-line with the rising popularity and demand for more virtual reality content
COPYRIGHT SILVERWOOD PARTNERS 2001-2016
PAGE 17
SOCIAL MEDIA VIDEO – THE NEW PLATFORM FOR VIDEO More and More Video Continues to be Viewed as Content Availability Increases •
•
•
•
65% of marketers believe social platforms currently are the most important distribution method for digital video campaigns, followed by pure-play video platforms (YouTube) at 59% (TMB) Linear TV viewership is no longer the norm; as more and more screens become available, video is now being consumed everywhere – market studies have found that traditional scheduled TV now only accounts for 45% of all adult viewership1 The growth of digital video content and viewership continues to proliferate – recent forecasts project that video will account for 80% - 90% of all consumer internet content by 2019, up from 64% in 20142 - live video events accounted for nine of the top ten most viewed television programs of 2015 (TV Insider) Helping to drive digital video’s growing popularity is the combination of mobile video and TV Everywhere – by 2020 video is estimated to account for 75% of all mobile data traffic1 and in 2015 TV Everywhere recognized annual growth of 102%3 Recent Digital Video Developments Facebook recently launched live streaming video, continues to build out virtual reality strategy with release of Oculus In Q4 2015, Amazon doubled its hours of video streamed over previous year Periscope reports 110 years worth of video is watched every day on company’s platform, up from 41 years in August 2015
Over 400 hours of video content uploaded per minute, up from 300 in late 20144 1. Ooyala 2. Cisco VNI 3. Adobe Digital Index 4. Tubefilter
COPYRIGHT SILVERWOOD PARTNERS 2001-2016
PAGE 18
BIG IT CONTINUING ADVANCES INTO VIDEO TECHNOLOGY Increasing Purchase Uncertainty from Broadcasters and Content Creators Affecting Broadcast and Media Technology Industry •
•
•
•
•
•
•
Rapidly improving cloud-based technology becoming more efficient and capable of processing the data intensive nature of video production and content delivery – external factors such as improved bandwidth and storage efficiencies have laid the groundwork for cloud-based technology to succeed in the industry Transitioning various aspects of video transport and production workflow solutions to virtualized, cloud-based offerings is now a more viable option than ever Technology buyers in the industry are demanding reliable and scalable cloud-based solutions – many traditional technology providers quickly converting products to cloudbased offerings; limited cloud experience negatively affecting buyer decision process The disparity between buyer demand and buyer trust in current offerings has provided Big IT (IBM, Amazon, Verizon, Cisco, etc…) with a growing opportunity in the broadcast and media technology industry
Selected Big IT Video Platforms AWS Digital Media provides video processing, storage and security capabilities to Netflix, Comcast, the Financial Times and many others; recently acquired Elemental Technologies Recently announced IBM Cloud Video Services scaling up quickly, estimates digital video to be a $105 billion industry; four acquisitions in two years Cisco Infinite Video allows service providers to deliver live and on-demand TV and video content to multiple unmanaged devices; recently acquired startup 1Mainstream
Viewers’ increased attention towards digital video is being complemented by a similarly increasing availability of digital video content – video is expected to account for 90% of consumer internet traffic by 2019, up from 64% in 20141 In recent years a growing demand for live video on the internet has resulted from the increasing popularity of digital video – many large media technology companies launched live video platforms in 2015 The growing mainstream prominence of live video streaming and UHD video present an increasing opportunity for further technological advancements – both live video and UHD’s memory intensive concepts will be more difficult to deliver on a reliable, low latency basis
Video Encoding
Video Transcoding
Content Management
Advertising 1. Cisco
1. Ooyala 2. Cisco VNI 3. Adobe Digital Index 4. Tubefilter COPYRIGHT SILVERWOOD PARTNERS 2001-2016
PAGE 19
SECTOR M&A ACTIVITY – EXCEPTIONAL 2015; STRONG 2016 YTD
Representative Transactions
2012
2013
2014
2015
2016 (YTD)
58
64
76
98
88
Mean
2.3x
1.6x
1.7x
2.5x
1.7x
Median
1.4x
1.3x
1.4x
2.0x
1.4x
# of Transactions*
Revenue Multiple
Thru 8/26/2016
* Representative transactions involving media technology vendors
Source : Pitchbook, Silverwood Partners estimates
COPYRIGHT SILVERWOOD PARTNERS 2001-2016
PAGE 20
M&A ACTIVITY M&A Market Perspectives •
Large increase in deal momentum in second quarter; improved stability in financial markets
•
Through H1 2016, global M&A activity is down 4.2% YoY, but remains at historically high level
Technology M&A Environment
Global M&A Activity
Information Technology Closed M&A Transactions 1/1/2011 to 8/26/16; Source: Pitchbook
Source: Thomson Reuters
Transaction Volume (billions of USD)*
450
Adjusted Number of Transactions
700
3,000 250 2,500 200 2,000 150
1,500
100
1,000
50
500
0
0
2011
2012
2013
2014
2015
600
Number of Transactions
10000 9000 8000 7000 6000
500 5000 400 4000 300 200 100 0
3000
Number of Transactions
300
Number of Transactions
3,500
Transaction Volume ($B)
4,000
350
Transaction Volume ($ billions)
800
4,500
400
Transaction Volume ($B)
900 5,000
2000 1000 0
YTD 2016
COPYRIGHT SILVERWOOD PARTNERS 2001-2016
PAGE 21
CORPORATE VENTURE INVESTMENT ACTIVITY Corporate VC and Direct Investment Funding Continues to Remain an Active Trend in Startup Financing •
•
Through H1 2016, corporations have invested a total of $24.2 billion; $11.5 billion through strategic corporate financing and $12.7 billion through corporate venture arms Corporate financing activity continues to remain at historically high levels
Corporate VC vs. Corporation Funding Source: CB Insights 12
400
350
10
8
250
6
200
150
4
100 2
Number of Transactions
Transaction Value ($B)
300
50
0
0
CVC Value ($ billions)
Corp Funding Value ($ billions)
CVC Transactions
COPYRIGHT SILVERWOOD PARTNERS 2001-2016
Corp Funding Transactions
PAGE 22
SECTOR M&A MARKET INDICATORS August ‘09
August ‘10
August ‘11
August ‘12
August ‘13
August ‘14
August ‘15
August ‘16
Confidence Level
Economic Activity
Credit Market
Equity Markets Media Tech Industry Factors
COPYRIGHT SILVERWOOD PARTNERS 2001-2016
PAGE 23
EQUITY MARKETS REACH NEW ALL-TIME HIGHS Equity Markets Continue to Climb as Market Volatility Decreases • • •
NASDAQ at 5,223 as of 8/30/2016, down 0.8% from all-time high of 5,262 (8/15/16) S&P 500 at 2,176 as of 8/30/2016, down 1.0% from all-time high of 2,190 (8/15/16) Dow at 18,454 as of 8/30/2016 down 1.3% from all-time high of 18,636 (8/15/16)
6000
All-Time High
5000
4000
3000
2000
1000
0 August-86
August-88
August-90
Source: Yahoo Finance; as of August 26, 2016
August-92
August-94
August-96
August-98
August-00
August-02
August-04
August-06
August-08
August-10
August-12
August-14
August-16
NASDAQ Composite Index (^COMP) - Index Value
COPYRIGHT SILVERWOOD PARTNERS 2001-2016
PAGE 24
SIGNIFICANT PRIVATE EQUITY CAPITAL AVAILABLE U.S. PE Firms Aggressively Searching for Acquisitions • • •
Over $700 billion of U.S. PE capital available for equity investment Purchasing power 3x to 4x this amount with leverage, reinvested equity Significant sector interest by PE buyers
Private Equity Capital Overhang 900 $765
800
$760
$759
$741 $680
Capital Overhang ($B)
700
$703
$773
$749
$697 2016
$623
2015
600
2014
Cumulative Overhang 500
2013
400
2012
Overhang by Vintage
300
2011
200
2010 2009
100
2008 -
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Source: PitchBook; as of end of 2015
COPYRIGHT SILVERWOOD PARTNERS 2001-2016
PAGE 25
BORROWING COSTS HISTORICALLY LOW Corporate Bond Yields Decreased from Recent Highs in February • • •
Spreads have tightened vs. Treasurys for corporate issuers Yields lowering for less than investment grade issuers Market access more certain with decreased volatility
20% 18% 16% 14%
CCC B
12%
BB 10%
BBB A
8%
AA 6%
AAA
4% 2% 0% August-14
November-14
February-15
May-15
August-15
November-15
February-16
May-16
August-16
Source: S&P Dow Jones Indices; as of August 26, 2016
COPYRIGHT SILVERWOOD PARTNERS 2001-2016
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WHAT IS THE EQUITY MARKET REWARDING? TEV/Rev (LTM)
• Strategic Technology • Sustainable Position/Strong Growth • Strong Operating Performance 2.5x • Good Technology, Possibly Strategic • Near-Term Growth
• Solid Operating Performance 1.0x
• Technology – Mature or Underappreciated • Uncertain or Evolving Growth Story • Mixed Operating Performance
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PUBLIC COMPANIES – EV/REVENUE > 2.5X 0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
6.0x
7.0x
8.0x
9.0x
10.0x
Adobe Systems Autodesk Net Insight Rovi
Dolby Laboratories Akamai Technologies DTS TV Logic EVS Broadcast Equipment Level 3 Communications Evertz Technologies Brightcove
Source: Pitchbook Data as of August 26, 2016
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PUBLIC COMPANIES – EV/REVENUE 1.0X – 2.5X 0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
6.0x
7.0x
8.0x
9.0x
10.0x
Cisco Systems
CommScope NeuLion Belden Internap Network Services Comtech Telecommunications GoPro AudioCodes
Harmonic ARRIS International Vitec Group Canon Limelight Networks Harman International Industries
Source: Pitchbook Data as of August 26, 2016
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PUBLIC COMPANIES – EV/REVENUE < 1.0X 0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
6.0x
7.0x
8.0x
9.0x
10.0x
Avid Technology ZOO ViXS Systems RealNetworks Technicolor Sonic Foundry Samsung Electronics Co. Tata Communications Barco Dalet Sony Quantum (IT Services) Qumu Concurrent Computer Blonder Tongue Laboratories Sizmek Panasonic
SeaChange International Christie Group
Source: Pitchbook Data as of August 26, 2016
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SELECTED STOCK PERFORMANCE – TRAILING TWELVE MONTHS Adobe Systems (ADBE)
Avid Technology (AVID)
Belden (BDC)
Dalet (DLT)
150
15
100
10
100
10 50
5
50
0 Aug-15
5
Aug-16
0 Aug-15
0 Aug-15
Aug-16
Aug-16
0 Aug-15
Evertz Technologies (ET)
EVS Broadcast Equipment (EVS)
Harman International Industries (HAR)
Harmonic (HLIT)
20
60
200
10
15
150
40
10
100 20
5 0 Aug-15
Aug-16
0 Aug-15
5
50 0 Aug-15
Aug-16
Aug-16
0 Aug-15
Rovi (ROVI)
Technicolor (TCH)
Vislink (VLK)
Vitec Group (VTC)
30
10
1
15
5
1
20
Aug-16
10
10
0 Aug-15
Aug-16
5
Aug-16
0 Aug-15
Aug-16
0 Aug-15
Aug-16
0 Aug-15
Aug-16
Source: Pitchbook Data as of August 26, 2016
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SELECTED TRANSACTIONS – MEDIA TECHNOLOGY M&A Date Target 8/19/2016 Arris (Whole Home Solution) 8/11/2016 Beam Interactive 8/8/2016 Snowbush 8/5/2016 Eyegroove 7/26/2016 Vizio 7/25/2016 CJ Hellovision 7/13/2016 Tessive 7/11/2016 Orban 7/7/2016 Click Effects 7/6/2016 RRmedia 6/30/2016 Deltatre 6/30/2016 GoVision 6/28/2016 QuickPlay Media 6/27/2016 Accedo Broadband 6/20/2016 Magic Pony Technology 6/18/2016 Buni Tv 6/6/2016 Saffron Digital
Target Description Provider of turn-key IP video platform Provider of an interactive live streaming platform Developer and supplier of analog and mixed-signal circuits and intellectual property Provider of a instant music video application Manufacturer of high definition televisions, computers, home audio systems and accessories Provider of multi system operator service in South Korea Producer of temporal aliasing removal equipment for motion picture cameras Provider of audio processing services for radio, television, and Internet broadcasting and streaming Developer of live-event production and broadcast equipment for sports stadium presentations and broadcasts Provider of digital media management and distribution services for broadcasters and content owners Provider of content and data management for sports and entertainment industry Distributor of LED jumbo screens for day and night broadcasting of events Provider of cloud-based, managed-service platform for the distribution of media to IP-connected devices Provider of television interactive applications for smart TVs and connected TV devices Developer of machine learning technologies for visual processing Operator of a video-on-demand platform Provider of multi-platform digital video services
Transaction Value ($MM) NA NA 32.0
Revenue Multiple NA NA 2.0x
EBITDA Multiple NA NA NA
NA 2,250.0
NA 0.8x
NA 23.1x
427.6 NA
1.4x NA
4.5x NA
DaySequerra
NA
NA
NA
ChyronHego, Vector Capital
NA
NA
NA
SES Astra
242.0
1.7x
25.2x
Bruin Sports Capital
160.9
2.6x
17.8x
Learfield Sports
NA
NA
NA
AT&T
NA
NA
NA
10.0
1.4x
NA
150.0 NA NA
NA NA NA
NA NA NA
Buyer Espial Microsoft Rambus Facebook LeEco SK Group RealD, Rizvi Traverse Management
SEB Private Equity Twitter Trace TV NeuLion
Source: Pitchbook Data as of August 26, 2016
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SELECTED TRANSACTIONS – MEDIA TECHNOLOGY M&A Date 5/24/2016 Protracer
Target
5/19/2016 OVGuide 5/18/2016 StoryBox.tv 5/9/2016 UUX Holding (OTT Networks business) 5/3/2016 Sahkotaso Esitystekniikka 5/2/2016 VHX 4/27/2016 SintecMedia 4/19/2016 WASPcam 4/18/2016 ioGates 4/15/2016 Jargon Technologies 4/12/2016 VidLasso Technology 4/11/2016 Cloudium Systems
Transaction Value ($MM) NA
Revenue Multiple NA
EBITDA Multiple NA
10.0 NA 7.9
NA NA 1.1x
NA NA NA
NA NA 400.0
NA NA 3.6x
NA NA NA
Cedar Electronics Holdings Broadcast Pix Giant Interactive
NA NA NA
NA NA NA
NA NA NA
Axle Video
NA
NA
NA
Black Box
NA
NA
NA
Target Description Developer and provider of graphics and technology for producing golf on TV Provider of online video-streaming platform Provider of movie-streaming platform Developer of technology for digital television platform
Buyer Providence Equity Partners, TopGolf International
Provider of audio-visual technology products and services Provider of an online platform to discover, watch and share videos Provider of Internet-based management software systems for broadcasters and multi channel video providers Manufacturer of sports cameras and accessories Provider of cloud-based video management services Provider of software development services for Blu-ray, iOS, Android, Windows and Connected TV Designer and developer of mobile software for mobile video capture and streaming services Provider of media applications spanning desktop virtualization to IPTV
Caverion Vimeo Francisco Partners
FilmOn Cinedigm Agile Content
Source: Pitchbook Data as of August 26, 2016
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SELECTED TRANSACTIONS – MEDIA TECHNOLOGY PRIVATE PLACEMENT Date 8/19/2016 YesVideo 8/9/2016 8/3/2016 8/8/2016 8/1/2016
Target
MLB Advanced Media Hulu Kaltura Zype
Target Description Provider of a digital video imaging platform Producer of live digital television program and developer of digital video platform technology Provider of SVOD video platform Provider of an open source online video platform Developer of a cloud platform for video publishing and distribution
7/22/2016 Videolicious 7/10/2016 Replay Media Group 7/6/2016 Light
Provider of a Web-based platform for video creation Provider of an application discovery platform for Apple and Android TV Developer of a camera zoom technology
6/28/2016 Clipchamp 6/27/2016 Vemba
Provider of online video converter tools Developer of cloud-based video distribution and content discovery platform Provider of audio production tools Provider of online interactive video platform Provider of an online platform to manage, distribute and monetize video content Provider of an online mobile application for video streaming and movie recommendation Provider of a digital platform that helps users discover, watch and share videos Provider of a platform for real-time, personalized and automatic generation of videos
6/23/2016 iZotope 6/16/2016 Interlude 6/15/2016 Samba Tech 6/13/2016 MightyTV 6/8/2016 Frequency 6/8/2016 SundaySky
Investors Undisclosed
Transaction Value ($MM) 2.1
Walt Disney Time Warner Cable Goldman Sachs Private Capital Investing Group Alpine Meridian, Berlin Ventures, Brian Fitzgerald, Chip Russo, Entrepreneurs Investment Fund, Evan Greenberg, Geoff Judge, Gordon Paddison, John Maloney, Michael Barrett, Michael Kassan, Point Nine Capital, Revel Partners, Terrapin Bale, Todd Barrish, Walker Jacobs Undisclosed Foxconn Technology Group Bessemer Venture Partners, Charles River Ventures, Eclipse Ventures, Foxconn Technology Group, GV, Paul Jacobs, StepStone Group Queensland University of Technology Endowment Bertelsmann Digital Media Investments, John S. and James L. Knight Foundation, Upfront Ventures ABS Capital Partners Sony Pictures Entertainment Black Point Group, Draper Fisher Jurvetson, José Augusto Schincariol, PBMS Group Canaan Partners, Spark Capital
450.0 583.0 50.0 3.6
Jason Calacanis, Kingdom Capital Group, Liberty Global Ventures, Oakmont, You On Demand Holdings Carmel Ventures, Comcast Ventures, Globespan Capital Partners, Norwest Venture Partners, NTT Docomo Ventures, Viola Growth
11.0
1.5 1.5 30.0 1.5 5.0 7.5 75.0 3.0 2.0
30.0
Source: Pitchbook Data as of August 26, 2016
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SELECTED TRANSACTIONS – MEDIA TECHNOLOGY PRIVATE PLACEMENT Date Target 6/7/2016 Ferris 5/26/2016 FOTV Media Networks 5/16/2016 Kollective Technology
Target Description Provider of mobile video platform Provider of online television services Developer of end-to-end enterprise video platform
5/11/2016 5/6/2016 5/5/2016 5/4/2016
Developer of an online video streaming platform Provider of a video creation platform Developer of products and software for panoramic photography Provider of content distribution platform
Cornflix Musical.ly 360fly Tappp
4/25/2016 Kamcord
Provider of tools for recording and sharing video of gameplay
4/22/2016 Ilos Videos 4/14/2016 Syncbak 4/5/2016 Unispectral
Provider of an online screen recording platform Provider of a software platform for Internet broadcasting Developer of next generation compact camera imaging technology
Investors Allen Debevoise, Daher Capital, Joe Ross, Richard Hillenbrand, Upfront Ventures Bonwick Capital Partners, Falcon Equity Partners Cross Creek Advisors, Hatteras Funds, MK Capital, Pritzker Group Venture Capital 500 Startups, OPT SEA, Wong Mun Yew DCM Ventures, GGV Capital, Greylock Partners, Qiming Venture Partners Hydra Ventures, L Catterton, Qualcomm Ventures Accomplice VC, Gina Garrubbo, Keith Nilsson, Michael Baker, Transmedia Capital Plug and Play, Tencent Industry Win-Win Fund, Time Warner Investments, TransLink Capital, XG Ventures Come Up Capital, Right Side Capital Management Gray Television Jerusalem Venture Partners, Robert Bosch Venture Capital, Samsung Strategy and Innovation Center, Tel Aviv University
Transaction Value ($MM) 1.2 2.2 12.3 NA 100.0 40.0 4.2 10.0 1.5 3.0 7.5
Source: Pitchbook Data as of August 26, 2016
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SELECTED TRANSACTIONS – VIDEO ADVERTISING TECHNOLOGY M&A Transactions Date 8/5/2016 Mobovivo 8/3/2016 Sizmek
Target
7/26/2016 ConvertMedia 7/7/2016 Anvato 7/1/2016 StreamRail 4/28/2016 Connecto
Target Description Provider of an interactive video and content marketing platform Provider of digital advertising software for mobile, media, video Provider of a video advertising platform that connects publishers and advertisers Provider of video content protection and contextual advertising technology platform Developer of online video-player technologies for publishers and advertising networks Provider of a cloud-based advertising platform designed to increase user engagement
Buyer Network Life Sciences Vector Capital Taboola Alphabet IronSource Girnar Software
Transaction Value ($MM) NA 122.0
Revenue Multiple NA 0.7x
EBITDA Multiple NA NA
100.0
2.0x
NA
NA
NA
NA
10.0
NA
NA
NA
NA
NA
Private Placement Transactions Date
Target
8/2/2016 Ceros 6/30/2016 Mixpo
Target Description Provider of a social media advertising platform to deliver contextual targeted mobile brand experience Provider of an interactive content creation software for marketers & designers Operator of an online video advertising technology platform
6/15/2016 6/14/2016 5/24/2016 5/6/2016 4/12/2016 4/11/2016
Developer of an online video advertisement platform Provider of interactive advertising technology Provider of an advertising automation platform Provider of an online advertisement management platform Provider of programmatic video marketing platform Provider of online display and video advertising technology
8/22/2016 MediaBrix
Eyeview Jivox Kiosked PaperG Brandzooka Altitude
4/8/2016 Collective
Provider of an online advertising network
Investors Edison Partners, Horizon Technology Finance, Revel Partners Clark Enterprises, Greycroft Partners, Grotech Ventures, Sigma Prime Ventures, Silicon Valley Bank, StarVest Partners Gemini Israel Funds, Lightspeed Venture Partners, Marker, Nauta Capital, Qumra Capital Fortisure Ventures, You & Mr Jones Brandtech Ventures
eonCapital, Galvanize Ventures, Imm, Mahalo Investments, RSVP Capital Bridge Bank, Multiplier Capital Accel Partners, Columbia Partners Investment Management, Greycroft Partners, iNovia Capital
Transaction Value ($MM) 6.5 8.0 2.0 21.5 6.0 10.0 1.9 1.5 17.5 34.0
Source: Pitchbook Data as of August 26, 2016
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SELECTED TRANSACTIONS – VIRTUAL REALITY TECHNOLOGY M&A Transactions Date 5/4/2016 Ads Reality 4/27/2016 MelodyVR 4/20/2016 RYOT
Target
Target Description Developer of 3D product recognition software Developer of virtual reality technology systems Publisher of immersive 360° and virtual reality video content
Buyer Game Digital Armstrong Ventures AOL
Transaction Value ($MM) 29.0 7.3 12.5
Revenue Multiple NA NA NA
EBITDA Multiple NA NA NA
Private Placement Transactions Date 8/9/2016 NextVR
Target
8/1/2016 SoVRan 7/26/2016 Kite and Lightning 7/20/2016 HoloLamp 6/24/2016 Acer Starbreeze 6/24/2016 Viorama
6/22/2016 CryWorks 6/16/2016 Within 6/15/2016 Visby 6/1/2016 TheWaveVR 5/16/2016 Zeality 4/28/2016 SpaceVR 4/17/2016 Sphericam 4/11/2016 Marxent
Target Description Developer of technology that captures, compresses, transmits and displays virtual reality content over the Internet
Investors China Assets, Citic Guoan Information Industry, CMC Capital Partners, Comcast Ventures, Dick Clark Productions, Formation Group, Founder Group, MSG Networks, NetEase, Peter Guber, RSE Ventures, Softbank, Spectrum 28, Time Warner Investments, VMS Investment Group Developer or virtual reality based software products and technologies Undisclosed Developer of a creative development studio for cinematic virtual reality Boost VC, Comcast Ventures, Courtside Venture, Jason Rosenthal, Raine Ventures, Social Capital Developer of a portable spatial augmented reality projector Undisclosed Designer and manufacturer of virtual reality displays Acer, Starbreeze Studios Developer of virtual reality mobile application to capture and share 360 Advancit Capital, Bertelsmann Digital Media Investments, DeNA, e.ventures, Felix degree video Capital, Greycroft Partners, Kevin Wall, Seedcamp Provider of augmented and virtual reality technologies for video creation 500 Startups, WI Harper Group Developer and provider of virtual reality content and technology platform Andreessen Horowitz, Annapurna Pictures, Freelands Ventures, Legendary Entertainment, Raine Ventures, Tribeca Enterprises, Twenty-First Century Fox, Vice Media, William Morris Endeavor Entertainment Developer of a light-field technology for virtual reality content 7percent Ventures, Virtual Reality Investments Provider of a virtual reality based music platform Joe Kraus, Kleiner Perkins Caufield & Byers, Mike Fischer, Presence Capital, Rothenberg Ventures, RRE Ventures, Seedcamp, The Venture Reality Fund Provider of social engagement and delivery platform of virtual reality and Jason Khalipa, Paraag Marathe, Rothenberg Ventures 360° video content Developer of a virtual reality platform for space Shanda Group, Skywood Capital Developer of spherical video cameras for motion pictures Kingnet Internet Technology Developer of virtual reality mobile applications Detroit Venture Partners, Stage 1 Ventures
Transaction Value ($MM) 80.0
NA 2.5 NA NA 2.5
NA 12.6 NA 2.5 NA 1.3 5.0 10.0
Source: Pitchbook Data as of August 26, 2016
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IMPORTANT INFORMATION The analysis and views expressed herein have been developed by Silverwood Partners LLC (“Silverwood”) or obtained from various third-parties. The material contained herein, while not guaranteed, is based on information that is believed to be reliable and accurate. This strategic industry analysis (“Strategic Analysis”) is prepared for general circulation and is circulated for general information only. It is not and is not intended to be a “Research Report” as defined by Rule 2241 of the Financial Industry Regulatory Authority (“FINRA”) effective as of the date hereof or as amended. Specifically, this Strategic Analysis does not provide information reasonably sufficient upon which to base an investment decision as it does not have regard to the particular investment objectives, financial situation and the needs of any person or entity who may receive this document. Silverwood does not assess for any particular investor the suitability of any particular investment or the potential value of any particular investment. None of the information contained herein constitutes a recommendation or a solicitation by Silverwood or a recommendation or solicitation that any particular investor should purchase or sell any particular security in any amount, or at all. Investors should seek financial advice regarding the appropriateness of investing in the securities of any company mentioned in this Strategic Analysis and should understand that statements regarding future prospects may not be realized. Past performance is not necessarily a guide to future performance. This Strategic Analysis is not intended to provide tax, legal, or investment advice. Neither the information nor any opinion expressed herein constitutes an offer, or an invitation to make an offer, to buy or sell any securities or any options, futures or other derivatives related to such securities. Silverwood, its partners, members, officers, employees, contractors, referral sources or members of their families may have a long or short position in any securities of the companies mentioned in this Strategic Analysis or in related investments. As an investment bank, Silverwood may be actively seeking to be retained by, may actually be retained by or may have in the past been retained by any of the companies mentioned in this Strategic Analysis. In addition, Silverwood personnel may have in the past provided services to certain companies mentioned in this report when employed by other firms. Furthermore, consultants to or referral sources for Silverwood, or former employees of Silverwood with continuing compensation arrangements with Silverwood, may have, or may have clients with, positions in securities referenced in this Strategic Analysis. For information on recent investment banking relationships between Silverwood and the companies mentioned in this Strategic Analysis, please contact: Chief Compliance Officer, Silverwood Partners LLC, Silverwood Farm Place, 32 Pleasant Street, Sherborn, MA 01770. Silverwood does not (i) guarantee the accuracy, timeliness, completeness, or correct sequencing of the information contained herein, or (ii) warrant any results from the use of the information contained herein. This Strategic Analysis has been prepared as of the date indicated and may become unreliable because of subsequent market or economic circumstances. IN NO EVENT WILL SILVERWOOD, ITS PARTNERS, MEMBERS, OFFICERS, EMPLOYEES, CONTRACTORS, REFERRAL SOURCES AND RELATED PERSONS, OR OTHER PERSONS TRANSMITTING THIS STRATEGIC ANALYSIS BE LIABLE TO THE USER OR ANYONE ELSE FOR ANY CONSEQUENTIAL, INCIDENTAL, SPECIAL, OR INDIRECT DAMAGES (INCLUDING, BUT NOT LIMITED TO, LOST PROFITS, TRADING LOSSES, INVESTMENT LOSSES AND DAMAGES THAT MAY RESULT FROM THE USE OF THIS STRATEGIC ANALYSIS OR FOR OMISSIONS OR INACCURACIES IN THIS STRATEGIC ANALYSIS) EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THIS DOCUMENT IS NOT A “RESEARCH REPORT” AS DEFINED BY FINRA RULE 2241. EFFECTIVE AS OF THE DATE HEREOF OR AS AMENDED. AS A CONDITION TO USING THIS STRATEGIC ANALYSIS, THE USER EXPRESSLY WAIVES ANY CLAIM THE USER MAY HAVE AGAINST SILVERWOOD, OR ANY OTHER PERSON WITH RESPECT TO THIS STRATEGIC ANALYSIS. THERE IS NO WARRANTY OF MERCHANTIBILITY, NO WARRANTY OF FITNESS FOR A PARTICULAR USE, AND NO WARRANTY OF NON-INFRINGEMENT. THERE IS NO WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, REGARDING THIS STRATEGIC ANALYSIS OR THE INFORMATION CONTAINED HEREIN.
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