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Blackstone 2013 Digital Marketing Review

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2013 Review of the Digital Marketing ecosystem.

2013 Review of the Digital Marketing ecosystem.

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  • 1. Digital Marketing Industry ReviewJanuary 2013Ken AllenManaging Directorallen@blackstone.comRumena ManolovaAssociaterumena.manolova@blackstone.com
  • 2. Table of Contents I. Executive Summary 2 II. Industry Themes 7 III. M&A Perspectives 39 Appendix 51 Blackstone 1
  • 3. I. Executive Summary
  • 4. I. Executive SummarySummary ObservationsThe Digital Marketing The Digital Marketing Ecosystem Continues to Undergo a Significant Transformationsector continues to  Multi-decade transition from analog to digitalevolve, and is  Audience-centric, cross-channel, data-driven, real-timebecomingincreasingly strategic Growth in the Digital Marketing Industry is Being Driven by a Number ofto a large number Important Trendsof ecosystem players.  Mobile, Social, Video, Audience Targeting / RTB, and Data / Analytics are critical capabilities that have gained strategic importance in recent years The Above Trends Have Catalyzed a Significant Wave of Consolidation in the Industry  Leading strategic acquirers seeking growth have gained access to these capabilities through inorganic expansion  Stack convergence is resulting in unified, multi-channel offerings fueled by data and analytics Consolidation / M&A Will Continue to Define the New Digital Marketing Ecosystem  Larger players will continue to leverage M&A as a means to unify the product suite, ‘purchase R&D’, acquire talent, and, as a defensive measure, prevent strategic assets from falling into the wrong hands  Strategic M&A has become a core capability and a source of competitive advantage for many firms Blackstone 3
  • 5. I. Executive SummaryA Significant Shift Is Occurring in Online Marketing and Commerce PlatformsMarketing and eCommerce platforms are becoming increasingly integrated, supported by data andanalytics, and processed in real time. How We Decide How We Buy Social Comparison Mobile Mobile Shopping Social Display Email Digital Auctions Goods Flash Sales / Search Local Daily Deals Ecommerce Community TV Barcode TV Radio Branding Point of Call Direct Mail Sale Print Center Multi-Channel Multi-Channel Engagement Commerce Purchase Social Demo / Preferences Intent Behavioral History Graph Geo / ‘Likes’ 10110011011001010110001 ... Data ... 10110011011001010110001 Blackstone 4
  • 6. I. Executive SummaryThe Online Channel Represents the Sole Growth Vector in the Global Advertising Market While currently smallest in size, the Online advertising market is vastly outpacing other channels in terms of long-term growth. 2011 Global Market Size ($bn) 2006 – 2011 CAGR Key Drivers and Themes $497bn  Online media becoming central pillar of advertisers’ marketing efforts Online, 18%  Growth driven by increased Internet penetration, advanced technologies +14% (e.g., data analytics), and new forms of engagement (e.g., video) ($87)  Advertisers demanding engagement across multiple screens  Rapid decline caused by secular disadvantages Print, 23% (6%)  Shift towards brochures, flyers, booklets, press kits; away from news ($116)  Increased integration with digital (QR, augmented reality, ambient)  Strength in local / national cable offset by decline in broadcast TV, radio, Broadcast, 25% and outdoor broadcast 2% ($125)  Rapid growth of online video and radio creating competitive pressure  Persistent decline caused by secular disadvantages  Integration with digital channels (mobile, QR) and enhanced data Direct, 34% (5%) analytics capabilities becoming critical ($169)  Renewed interest in Direct Mail led by financial services, retail, and automotive sectors ($5) Global Market Size________________________________________________Source: Wall Street research, Bloomberg, eMarketer. Blackstone 5
  • 7. I. Executive SummaryKey Industry Growth Drivers A number of Social important themes are driving growth in the Digital Marketing ecosystem. Mobile Video $40 $30 $20 $10 $0 1995 1999 2003 2007 2012 Consolidation / Audience M&A Targeting / RTB Data / Analytics________________________________________________Note: Digital Advertising Revenue refers to U.S. spending; $ in billions.Source: Business Insider, IAB, eMarketer, Blackstone. Blackstone 6
  • 8. II. Industry Themes
  • 9. II. Industry ThemesDigital Marketing Industry Themes: Mobile Social Mobile Video $40 $30 $20 $10 $0 1995 1999 2003 2007 2012 Consolidation / Audience M&A Targeting / RTB________________________________________________ Data / AnalyticsNote: Digital Advertising Revenue refers to U.S. spending; $ in billions.Source: Business Insider, IAB, eMarketer, Blackstone. Blackstone 8
  • 10. Social Mobile Video $40 $30II. Industry Themes $20 $10 $0 1995 1999 2003 2007 2012 Audience Consolidation Targeting /Mobile Endpoints Are Expected to Drive Significant Data Consumption and Advertising Growth / M&A RTB Data / Analytics The proliferation of mobile devices, combined with the potential inherent in mobile targeting, Callout presents a significant market opportunity.Evolution of Hardware Device Penetration Ad Conversion by Device Type(Millions in log scale) (Based on a scale of 100% for Desktop)1,000,000 120% 110% 107% 100% 100% 100% 100% Mobile 100% 90%93% Internet 100,000 80% 68% 60% 45% 50% Desktop 40% 10,000 25% 27% 22% Internet 17% 20% 1,000 PC 0% 10B+Units? Rev. Per Click Conv. Rate Avg. Order Value Mini iPad Desktop Android Tablet iPhone Android Phone 100 1B+Units / Users Computer U.S. Net Mobile Ad Revenues 10 100MM+Units ($ in millions) Mainframe 11 - 14E CAGR $4,000 1 10MM+Units 68% $3,000 1MM+Units $2,000 0 40% $1,000 194% 1950 1970 1990 2010 2030 85% $0 57% 2011 2012E 2013E 2014E There are currently 953mm smartphone subscriptions vs. 6.1bn mobile subscriptions, representing a massive growth opportunity. Google Facebook Twitter Apple (iAd) Other________________________________________________Source: Wall Street research. Blackstone 9
  • 11. Social Mobile Video $40 $30II. Industry Themes $20 $10 $0 1995 1999 2003 2007 2012 Audience Consolidation Targeting /Mobile Is Taking Share From all Other Media Channels / M&A RTB Data / Analytics Consumers are incorporating mobile in all aspects of their daily lives – from social activities to commerce and TV viewing. Share of Consumer Time Spent with Major Media(1) Metric(2) 50% 45%  ~1,100% YoY growth in users in Q4 2012 44% 45% 43% 42% 40%  ~56% of users from mobile in 2012 35% 30% 26% 26% 26%  ~1,000% YoY growth in users in Q3 2012 25% 25% 20% 17% 16% 15%  70% of users from mobile in 2011 14% 15% 12% 10% 9% 9% 8% 8%  ~20% of shoppers scan a product barcode 7% 7% 7% 6% 6% 5% and/or send product pictures to friends 4% 5% and family 0%  85% of smartphone users access phones TV Online Radio Mobile Print Other while watching TV 2009 2010 2011 2012________________________________________________  55% of users from mobile in 2011(1) Source: eMarketer, BII Research.(2) Source: BII Research, Facebook, Enders Analysis. Blackstone 10
  • 12. Social Mobile Video $40 $30II. Industry Themes $20 $10 $0 1995 1999 2003 2007 2012 Audience Consolidation Targeting /On a Global Basis, the Mobile Growth Opportunity Is Massive / M&A RTB Data / Analytics Despite its rapid growth to-date, mobile continues to represent a major untapped opportunity.G-20 Internet Access(1) Untapped Smartphone Opportunity(2)(Consumer broadband connections in millions) (Global users in billions) 8.0 6B 3,000 7.0 Users 2,707 6.0 5.0 2,500 4.0 3.0 1B 2.0 Users 2,000 1.0 0.0 2,134 Smartphone Mobile Phone 1,500 Untapped Online Opportunity(3) (In billions) 1,000 7.0 825 6.0 5.0 475 500 4.0 Global Population 167 573 3.0 350 0 2.0 2005 2010 2015 1.0 Internet Population Fixed Mobile 0.0 1998 2008 1990 1991 1992 1993 1994 1995 1996 1997 1999 2000 2001 2002 2003 2004 2005 2006 2007 2009 2010 2011________________________________________________(1) Source: Strategy Analytics, International Telecommunications Union, BII Research.(2) Source: Boston Consulting Group, Mary Meeker, Kleiner Perkins, Morgan Stanley Research, Berg Insight, BII Research.(3) Source: International Communication Union, Google, BII Research. Blackstone 11
  • 13. Social Mobile Video $40 $30II. Industry Themes $20 $10 $0 1995 1999 2003 2007 2012 Audience Consolidation Targeting /Smartphone Penetration in the U.S. Is Showing Signs of Saturation / M&A RTB Data / Analytics As more than half of U.S. mobile subscribers now own smartphones, the pace of net new adds has slowed down.U.S. Smartphone Market: Year-Over-Year Net New Adds(Users in millions) 40 100% 35 80% 35 34 30 32 32 60% 29 29 25 27 40% 20 21 20% 15 18 14 15 0% 10 12 13 13 10 11 9 10 (20%) 5 8 0 (40%) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2013 Users Added % YoY Growth % Smartphone Penetration(1) 30% 38% 41% 44% 48% 50% 55%________________________________________________Source: comScore, Nielsen, BII Research.(1) Note: U.S. mobile subscribers 18+. Blackstone 12
  • 14. Social Mobile Video $40 $30II. Industry Themes $20 $10 $0 1995 1999 2003 2007 2012 Audience Consolidation Targeting /Mobile Ad Revenues Have Exhibited Slower Growth Thus Far Relative to Other Media / M&A RTB Data / Analytics Mobile advertising has grown more slowly than other media, as advertisers struggle to adopt the ‘right’ advertising model.Comparative U.S. Advertising Media Annual $ Revenue Growth (First 5 years)($ in millions)$5,000 $4,621$4,500$4,000 $3,698$3,500$3,000$2,500 $2,162 $2,162 $1,920$2,000$1,500 $1,171 $1,012 $907$1,000 $806 $500 $358 $392 $80 $55 $160 $267 $0 Year 1 Year 2 Year 3 Year 4 Year 5 Broadcast TV Mobile Internet________________________________________________Note: Adjusted for inflation.Source: IAB, McCann-Erickson, BIA-Kelsey, Bll Research. Blackstone 13
  • 15. Social Mobile Video $40 $30II. Industry Themes $20 $10 $0 1995 1999 2003 2007 2012 Audience Consolidation Targeting /Mobile Ads Are Primarily Web Search and Display / M&A RTB Data / Analytics Search dominates mobile ad revenues; however, eCPMs are lower than Desktop. The two leading smartphone platforms, Android and iPhone, garner the highest eCPMs.2011 Global Mobile Ad Spend(1) Effective CPM, Desktop vs. Mobile(3) Messaging $4.00 10% $3.50 $3.50 Display 28% $3.00 62% Search $2.50 $2.00CPM Rates by Mobile Devices(2)$3.00 $1.50$2.50$2.00 $1.00 $0.75$1.50 $2.85$1.00 $2.10 $0.50$0.50 $1.01 $0.59 $0.64 $0.20 $0.00$0.00 Windows Symbian RIM J2ME / Android iPhone Desktop Internet Mobile Internet Phone others________________________________________________(1) Source: IAB, BII Research.(2) Source: Opera Software, Q2 2012.(3) Source: comScore, Vivaki, Mobclix Exchange, BII Research. Blackstone 14
  • 16. Social Mobile Video $40 $30II. Industry Themes $20 $10 $0 1995 1999 2003 2007 2012 Audience Consolidation Targeting /Native, Location-based, and Video Ads Represent the Next Big Opportunity in Mobile / M&A RTB Data / Analytics Native, social, location-based, and video ads integrate more seamlessly in consumer mobile experiences and have higher CPMs.Ads in Timelines (Twitter / Facebook)(1) Location-Based Ads(2) (Monthly Ad Requests Per Mobile User by Location) 75 60 70 67 67 45 47 30 37 39 35 15 27 24 23 16 0 CPM Rate for Selected Mobile Ad Platforms(3) xAd Local $3.50 LSN Mobile Local Ads $5.00 Adsmobi Video Ads $5.00 Flurry Video Ads $10.00________________________________________________(1) Source: Twitter, Facebook. $0.0 $2.5 $5.0 $7.5 $10.0(2) Source: JiWire, 3Q 2012.(3) Source: Ad platforms, BII Research, Greg Sterling, Opus Research. Blackstone 15
  • 17. Social Mobile Video $40 $30II. Industry Themes $20 $10 $0 1995 1999 2003 2007 2012 Audience Consolidation Targeting /Smartphone Users Spend More Time on Apps than on the Web / M&A RTB Data / Analytics Apple dominates the mobile app revenue market.Total Time Spent Using Mobile Web vs. Apps(1) 2011 Mobile App Revenue Share(2)(Minutes Spent per Month in billions)140 Other120 10%100 Android 7% 80 60 40 20 83% 0 Apple iOS Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Mobile Web Apps________________________________________________(1) Source: Nielsen Smartphone Analytics, BII Research, Blackstone.(2) Source: iSuppli, Forrester Research, company press releases, BII Research. Blackstone 16
  • 18. Social Mobile Video $40 $30II. Industry Themes $20 $10 $0 1995 1999 2003 2007 2012 Audience Consolidation Targeting /Google Is the Overall Leader in Mobile Ad Revenues / M&A RTB Data / Analytics Google practically owns the mobile search market, and has steadily increased its revenue share over time.Mobile Ad Revenue(1)(% of total)100% 90% Other 80% 70% 60% 50% 40% 30% 20% 10% 0% 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11Google Global Mobile Search Market Share(2) Dec 08 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 96% 96% 96% 97% 98% 98% 98% 98% 97% 97% 97% 97% 97% 97% 97% 97%________________________________________________(1) Source: BII Research, Blackstone.(2) Source: Global StatCounter, BII Research. Blackstone 17
  • 19. Digital Marketing Industry Themes: Social Social Mobile Video $40 $30 $20 $10 $0 1995 1999 2003 2007 2012 Consolidation / Audience M&A Targeting / RTB________________________________________________ Data / AnalyticsNote: Digital Advertising Revenue refers to U.S. spending; $ in billions.Source: Business Insider, IAB, eMarketer, Blackstone. Blackstone 18
  • 20. Social Mobile Video $40 $30II. Industry Themes $20 $10 $0 1995 1999 2003 2007 2012 Audience Consolidation Targeting / / M&ASocial Networks Are Profoundly Changing How Consumers Discover and Interact with Brands RTB Data / Analytics Social networks are becoming a primary source for consumers to discover new products, view peer recommendations, and seek reviews. Innovations such as mobile check-ins and Facebook integration with retailer sites have allowed consumers to take “word-of-mouth” marketing to a mass scale. Traditional Marketing Funnel Social Media Marketing Loop Awareness Awareness Interest Interest Recomm- endation Decision Decision Action Action________________________________________________Source: eMarketer, Blackstone. Blackstone 19
  • 21. Social Mobile Video $40 $30II. Industry Themes $20 $10 $0 1995 1999 2003 2007 2012 Audience Consolidation Targeting /The Shifting Display Ecosystem Has Resulted in Dramatic Share Shifts in Advertising / M&A RTB Data / Analytics Underlying industry dynamics have resulted in significant display advertising share shifts from static, non-targeted premium channels to RTB and Social formats.Net U.S. Online Display Ad Revenues Net U.S. Social Network Ad Spending(% of Total Display Ad Revenues, 2011 – 2014) (% of Total Social Ad Revenues, 2011 – 2014) 2011 2012E 2013E 2014E 2011 2012E 2013E 2014E 14.0% 16.8% 17.7% 17.1% 70.9% 68.8% 65.6% 63.5% 13.8% 16.5% 19.8% 21.7% 5.5% 8.3% 11.1% 12.7% 10.8% 9.1% 8.1% Social Games 7.5% Social Games 5.5% 6.7% 7.0% 7.4% 4.5% 4.4% 4.3% 4.4% 4.3% 5.3% 5.8% 6.1% 4.3% 4.0% 3.8% 3.7% 1.8% - - -Total Top Five - % of Total Display 47.4% 50.8% 53.7% 54.4% Total Top Five - % of Total Social 88.0% 89.1% 89.5% 89.7%________________________________________________Source: eMarketer. Blackstone 20
  • 22. Social Mobile Video $40 $30II. Industry Themes $20 $10 $0 1995 1999 2003 2007 2012 Audience Consolidation Targeting /Facebook Represents an Exciting, Although As Yet Unproven, Advertising Platform / M&A RTB Data / Analytics Facebook’s data and potential targeting mechanisms hold significant promise for advertisers. Marketer response, however, has been mixed thus far.Facebook Targeting Framework Facebook Advertising ROI vs. Competitors (% Surveyed) Superior 17.1% Inferior 38.3% 44.5% YOU About the Same Targeting Mechanisms Facebook Advertising Feedback from C-Level Executives (Based on Citigroup Facebook Advertiser Survey) Demographic data  Retargeting  Primary customer data Facebook Advertising Partner View Facebook Advertising Partner View Personal information CEO of Major eCommerce Platform Mixed CEO of Online Ad Agency Mixed CEO of Leading Online Luxury CEO of Large Online Ad Agency Interest graph Goods Retailer Negative Group Negative CEO of Digital Ad Agency Mixed CMO of Online Ad Agency Positive Exec at Large Online Auction / CMO of Large Global Beverage Mixed Positive Commerce Site Company Exec at Large Online Community Site Negative CMO of Global Bank Mixed Targeting Channels Exec at Consumer / Business Printing Mixed CMO of Leading CPG Company Mixed Site Veteran Online Advertising Executive Negative CEO of Online Travel Company Negative Exec at Online Ad Platform Positive CMO of Online Automotive Retailer Mixed Exec at Leading Hot Beverage CEO of Large Ad Agency Firm Negative Positive Facebook Facebook Facebook Facebook Zynga.com Third-Party Smartphone Company Online Newsfeed Mobile Apps Exchange Sites Apps Exec at Large Ad Agency Firm Positive________________________________________________Source: Blackstone, Wall Street Journal, Citigroup. Blackstone 21
  • 23. Digital Marketing Industry Themes: Video Social Mobile Video $40 $30 $20 $10 $0 1995 1999 2003 2007 2012 Consolidation / Audience M&A Targeting / RTB________________________________________________ Data / AnalyticsNote: Digital Advertising Revenue refers to U.S. spending; $ in billions.Source: Business Insider, IAB, eMarketer, Blackstone. Blackstone 22
  • 24. Social Mobile Video $40 $30II. Industry Themes $20 $10 $0 1995 1999 2003 2007 2012 Audience Consolidation Targeting / / M&A RTBA Huge Opportunity, One that Online Video Is Ideally-Suited to Target, Exists in Display & Brand Advertising Data / Analytics A significant gap exists between the relative share of online and offline branding, implying a $13.0bn untapped market opportunity in the U.S. alone.U.S. Market Opportunity (2011) Online Becoming ‘The New Primetime’($ in billions) 70 Prime Time % People 15+ Using Medium $152.0bn $31.0bn100% 60 Direct Direct 50 (1) (1) Response Response 40 TV ($27.0bn, 18%) ($19.0bn, 61%) 30 75% 20 10 Internet Implied 0 Gap Midnight 2 AM 4 AM 6 AM 8 AM 10 AM 12 PM 2 PM 4 PM 6 PM 8 PM 10 PM ($13.0bn, 43%) 50% Harder to Reach Audiences in the New Media Model ADS TARGET AUDIENCE MEDIA (2) Branding Traditional Fewer ads… Reached more people… With undivided attention. Media ($125.0bn, 82%) 25% (2) Branding (2) Branding ($12.0bn, 39%) [__] More ads… Reaching fewer people… Paying less attention. New Media 0% U.S. Offline U.S. Online Media Spend Media Spend________________________________________________Source: IAB, Wall Street research, comScore, Blackstone.(1) Offline DR includes direct mail and directories. Online DR includes classifieds, e-mail, lead generation, and search.(2) Offline Branding includes outdoor, print, radio, and TV. Online Branding includes banner ads, rich media, sponsorships, and video. Blackstone 23
  • 25. Social Mobile Video $40 $30II. Industry Themes $20 $10 $0 1995 1999 2003 2007 2012 Audience Consolidation Targeting /“Over-the-Top” Video Is Reaching Mass Adoption / M&A RTB Data / Analytics As consumers begin to view more content online, “over-the-top” video revenues are on the rise. U.S. Primetime TV Viewing(1) Global Digital Video Revenue(2) (% of 18-49 TV set users during 8-9 PM hour, multiple responses permitted) ($ in billions) 120% $5.0 100% 6% 6% 7% 8% $4.0 17% 16% 80% 26% $3.0 60% $2.0 40% 82% 83% 64% 20% $1.0 0% $0.0 2004 2008 2012 2006 2007 2008 2009 2010 2011 Live TV Recorded TV Video game Streaming video Netflix Youtube Hulu________________________________________________(1) Source: GfK, BII Research.(2) Source: Company filings, Wall Street research, BII Research, Blackstone. Blackstone 24
  • 26. Social Mobile Video $40 $30II. Industry Themes $20 $10 $0 1995 1999 2003 2007 2012 Audience Consolidation Targeting /Online Advertising Has Shown Robust Growth Over the Past Decade / M&A RTB Data / Analytics Online advertising growth, which has averaged 18% per year over the past decade, has come mainly at the expense of Print. In the future, Video is expected to be a major growth driver online.Historical U.S. Market Share by Channel Projected U.S. Online Advertising Market Share50% 50% 48% 47% 47% 40%40% 40% 38% 30%30% 24% 20% 21%20% 21% 18% 15% 17% 14% 10% 8% 6% 5%10% 5% 5% 5% 4% 3% 3% 5% 0% 0% 0% 2011 2012E 2013E 2014E 2015E 2016E 0% Search Display(5) Video Classifieds and Directories Lead Generation Rich Media Broadcast (1) Print(2) Direct (3) Online(4) Sponsorships Email________________________________________________Source: Wall Street research, eMarketer.(1) Broadcast includes outdoor, radio, and television.(2) Print includes magazines and newspapers.(3) Direct includes direct mail and directories.(4) Online includes search, display, video, classifieds, lead generation, rich media, sponsorships, and e-mail.(5) Includes mobile advertising. Blackstone 25
  • 27. Social Mobile Video $40 $30II. Industry Themes $20 $10 $0 1995 1999 2003 2007 2012 Audience Consolidation Targeting /Similar to Print a Decade Ago, TV is Ripe for Disruption / M&A RTB Data / Analytics Google already generates almost as much U.S. ad revenue as all magazines and newspapers. The Company is well positioned to take share from TV networks as more video content is consumed online and becomes better monetized. U.S. Ad Revenue(1) Ad Loads, TV vs. Digital(2) ($ in billions) (% share of programming) $50.0 $45.0 $40.0 TV 75.2% 24.8% $35.0 $30.0 $25.0 Online Video 98.5% 1.5% $20.0 $15.0 $10.0 Streaming TV Online 92.1% 7.9% $5.0 $0.0 2004 2005 2006 2007 2008 2009 2010 2011 1H2012 0% 20% 40% 60% 80% 100% Google Magazines Newspapers Content Ads________________________________________________(1) Source: Google, NAA, PIB, BII Research.(2) Source: comScore, June 2012, BII Research. Blackstone 26
  • 28. Digital Marketing Industry Themes: Audience Targeting / Real-time Bidding (“RTB”) Social Mobile Video $40 $30 $20 $10 $0 1995 1999 2003 2007 2012 Consolidation / Audience M&A Targeting / RTB________________________________________________ Data / AnalyticsNote: Digital Advertising Revenue refers to U.S. spending; $ in billions.Source: Business Insider, IAB, eMarketer, Blackstone. Blackstone 27
  • 29. Social Mobile Video $40 $30II. Industry Themes $20 $10 $0 1995 1999 2003 2007 2012 Audience Consolidation Targeting / / M&AThe Display Markets Have Seen a Flood of Non-Premium Inventory That Is Less Attractive to Brands RTB Data / AnalyticsThe Display market has been driven by a rise in non-premium inventory, which has typically beenless attractive to brands and has resulted in pricing pressure for premium publishers.Global Display Advertising has Seen a Flood of Inventory U.S. Average CPM by Media Type($ in billions) $80.0 Broadcast TV % Increase 07-10E 10E-13E Cable TV Supply 122% 87% Huge opportunity to increase Syndication TV Demand (22%) 13% ad effectiveness through social $60.0 marketing / audience targeting Radio 100% / RTB 90% Magazine 80% 41% 41% 47% Newspaper $40.0 51% 70% 57% $1.2 $32.2 60% Out-of-Home 50% $23.1 $7.8 Internet (Display) 40% $20.0 $7.4 ($1.3) $17.1 30% 42% 46% 48% Online Video 45% 20% 39% Hulu 10% $0.0 0% 2007 Inventory Pricing 2010 Inventory Pricing 2013E CPM <$2 $6 $10 $14 $18 $22 $26 $30 $34 >$40 2004 (Supply) (Demand) 2006 2005 2007 (Supply) (Demand)2008 Denotes Average CPM Supply-Driven Demand-Driven ________________________________________________________________________________________________ Source: Media Dynamics, comScore, Wall Street research.Source: Wall Street research, Blackstone. Note: All media measured per adult, based on 2009 / 2010 rates; low estimates for traditional media include adsNote: Display inventory comprised of page views and ad coverage; pricing reflective of RPM’s. Pricing reflective aimed at mass market (no demo targeting); average estimates for TV include 1) early am, 2) daytime, 3) early news,of the combination of CTRs and CPC. 4) primetime, and 5) late evening and are based on upfront pricing. Blackstone 28
  • 30. Social Mobile Video $40 $30II. Industry Themes $20 $10 $0 1995 1999 2003 2007 2012 Audience Consolidation Targeting /A New Display Advertising Ecosystem Is Emerging / M&A RTB Data / Analytics The Display ecosystem is increasingly integrated, data-driven, and real-time in nature. Advertisers Format Advertiser Exchange Ecosystem Publisher Inventory Publishers Tools Tools Format Display Optimization Long-tail Search Display O&O Premium / Analytics Networks Optimization Niche / Vertical Brand AdSense / Analytics Search Social Networks Rich Media DSPs / Video Targeting AdSense Mobile Online Video Demand- Supply- Ad Ad Campaign Side Side Self-Service Mobile Exchanges Rich Media Management Platforms Platforms Ad Platforms Social Online Video Media Buying Direct TV Platforms Proprietary Data Mobile Networks Radio (?) Management SSPs Print (?) Marketing Platforms Automation Social Other (?) Direct Data Integration / Aggregation / DMPs Infrastructure Infrastructure Data Warehouse Client / Primary Data Third Party Data Cloud / Edge Network / CDN________________________________________________Source: Blackstone. Blackstone 29
  • 31. Social Mobile Video $40 $30II. Industry Themes $20 $10 $0 1995 1999 2003 2007 2012 Audience Consolidation Targeting /RTB Spending Is Growing Across All Major Ad Formats / M&A RTB Data / Analytics While it has been used historically to auction remnant inventory, RTB has extended to premium publishers, premium advertisers, and premium ad formats.U.S. Real-Time Bidding Digital Display Ad Spending Key Drivers of RTB Spending($ in billions)$10.0  Maturation of Facebook Ad Exchange  Influx of Mobile and Video Inventory $8.0  Greater Availability of Premium Inventory $7.1  Demand for Increased Transparency $6.0 Types of Advertisers that Use RTB in North America $4.0 QoQ Δ in Q2 2012 # of Advertisers $2.0 Major National 57% 30% $1.0 Internet Brand 29% 23% $0.0 2011 2016 Major Regional 11% 25% % of Total Display 8% 22% Local Business 3% 49% Ad Spending________________________________________________Note: Includes all display formats served to all devices.Source: eMarketer. Blackstone 30
  • 32. Social Mobile Video $40 $30II. Industry Themes $20 $10 $0 1995 1999 2003 2007 2012 Audience Consolidation Targeting /Ecommerce Players Are Also Disrupting the Display Ecosystem by Leveraging Data / M&A RTB Data / Analytics Major eCommerce players have developed significant advertising businesses by harnessing their unique data assets to target advertising to specific audiences.U.S. Retailers: Total Ad Display Impressions(1)(In billions) 25.0 20.0 15.0 10.0 Other 5.0 0.0 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012Product Ads From External Websites(2)________________________________________________(1) comScore, BII Research.(2) Amazon.com, BII Research. Blackstone 31
  • 33. Digital Marketing Industry Themes: Data / Analytics Social Mobile Video $40 $30 $20 $10 $0 1995 1999 2003 2007 2012 Consolidation / Audience M&A Targeting / RTB________________________________________________ Data / AnalyticsNote: Digital Advertising Revenue refers to U.S. spending; $ in billions.Source: Business Insider, IAB, eMarketer, Blackstone. Blackstone 32
  • 34. II. Industry ThemesThe Internet Has Generated an Explosion of Unstructured Digital Content 13,000+ hours 12,000+ 370,000+ 1 98,000+ MUSIC NEW ADS minutes NEW DEFINITION 1,600+ TWEETS STREAMING POSTED VOICE CALLS is added on READS ON on on on 320+ NEW 20,000+ NEW POSTS on accounts 100+ NEW accounts 13,000+ The world’s associatedcontent 1 LARGEST APPLICATIONS NEW article community DOWNLOADED is published created content 6,600+ 100+ 40+ NEW pictures are uploaded on Answers.com QUESTIONS asked on the 600+ internet… 50+ NEW VIDEOS DOWNLOADS 695,000+ 25+ hours 70+ 125+ TOTAL DURATION DOMAINS STATUS PLUGIN REGISTERED UPDATES 60+ 168 million 694,445 downloads 79,364 NEW BLOGS EMAILS SEARCH WALL POSTS ARE SENT QUERIES 1,700+ 510,040 1,500+ COMMENTS BLOG POSTS DOWNLOADS________________________________________________Source: Go-Globe.com Blackstone 33
  • 35. Social Mobile Video $40 $30II. Industry Themes $20 $10 $0 1995 1999 2003 2007 2012 Audience Consolidation Targeting /Data Usage Is Projected to Continue to Grow Exponentially / M&A RTB Data / Analytics In addition to massively increasing data volumes, the variety and complexity of data are experiencing similar exponential growth. The explosion of data represents a tremendous opportunity, and challenge, for marketers.Multiple Sources Contributing to Growth in Data Historical and Projected Data Growth (Exabytes) CAGR (2010 – 2014E) Sensors / RFID / Devices Big Data User 90 Petabytes Mobile Web Generated 79.2 48.0% Sentiment Content User Click Stream Social 75 22.0% Web Interaction & Fees Terabytes Web logs A/B Testing 60 Offer History Dynamic Pricing Spatial & GPS 53.2 Coordinates Affiliate External 45 CRM Networks Demographics Segmentation 35.7 58.0% Offer Details Search HD Video, Gigabytes Marketing Audio, 30 Customer Touches 24.2 Images Support Contacts Behavioral Speech to Text 16.4 Targeting 15 8.7 10.5 ERP Product / 6.3 Purchase Detail Dynamic Service Logs 2.5 3.8 Megabytes Funnels Purchase Record SMS / MMS 0 Payment Record 2005 2006 2007 2008 2009 2010 2011E 2012E 2013E 2014E Unstructured Structured Increasing Data Variety and Complexity________________________________________________Source: Cisco, Wall Street research, YouTube. Blackstone 34
  • 36. Social Mobile Video $40 $30II. Industry Themes $20 $10 $0 1995 1999 2003 2007 2012 Audience Consolidation Targeting /Data Analytics, Mobile, and Social Are the Top Priorities of Today’s CMO / M&A RTB Data / Analytics Analytics, social, and performance-based advertising are at the forefront of the CMO agenda.Technology that CMOs Worldwide Plan to Increase Use Transition to Performance-Based Advertisingof in the Next 3 – 5 Years (% Channel Market Share)(% Respondents) 100% Social Media 82% 5% 4% 4% 4% 5% 4% 17% 13% Customer Analytics 81% 90% CRM 81% 80% 31% 37% 33% 39% Mobile Applications 80% 45% 70% 48% Content Management 73% 46% 60% 42% Tablet Applications 72% Single View of Customer 70% 50% Collaboration Tools 68% 40% Predictive Analytics 66% 65% 30% 59% 62% 57% Reputation Management 63% 51% 47%Search Engine Optimization 20% 41% 41% 62% Campaign Management 61% 10% Score Cards / Dashboards 56% 0% Email Marketing 46% 2004 2005 2006 2007 2008 2009 2010 2011 0% 15% 30% 45% 60% 75% 90% Data-Driven Marketing Performance-Based CPM Hybrid________________________________________________Source: IBM, eMarketer. Blackstone 35
  • 37. Social Mobile Video $40 $30II. Industry Themes $20 $10 $0 1995 1999 2003 2007 2012 Audience Consolidation Targeting /Data Is Gaining Increased Importance in the Current Digital Marketing Landscape / M&A RTB Data / Analytics Brands / Primary Data Agencies Analytics, Optimization and Media Plan Database Marketing Enterprise CRM Marketing Software Execution Analytics (IBM) ` Networks / Exchanges (Google) ® (WPP) (Omnicom) 3rd Party Data / Data Exchanges (WPP)________________________________________________Source: Blackstone, Gartner. Blackstone 36
  • 38. Digital Marketing Industry Themes: Consolidation / M&A Social Mobile Video $40 $30 $20 $10 $0 1995 1999 2003 2007 2012 Consolidation / Audience M&A Targeting / RTB________________________________________________ Data / AnalyticsNote: Digital Advertising Revenue refers to U.S. spending; $ in billions.Source: Business Insider, IAB, eMarketer, Blackstone. Blackstone 37
  • 39. Social Mobile Video $40 $30II. Industry Themes $20 $10 $0 1995 1999 2003 2007 2012 Audience Consolidation Targeting /Strategic M&A Activity Is Occurring on All Levels of the Digital Marketing Stack / M&A RTB Data / Analytics / / / Services / / / Display Email Email / MA Local Local Mobile Mobile Search Search Social Social Video Video / / / / / / / / / + / (Daily deal sites / consolidation) / / / / / (Search partnership) / / / Platforms / / / / / / / Optimization / / / / Analytics / / / / / / / Data________________________________________________Source: Capital IQ, Blackstone. Blackstone 38
  • 40. III. M&A Perspectives
  • 41. Social Mobile Video $40 $30III. M&A Perspectives $20 $10 $0 1995 1999 2003 2007 2012 Audience Consolidation Targeting /Summary Observations in Digital Marketing M&A / M&A RTB Data / Analytics Strategic M&A is impacting every layer of the Digital Marketing stack.The Digital Marketing Ecosystem Continues to Consolidate through Strategic M&A Marketers realize inherent value from the consolidation of multiple point products into an integrated offering Market solutions evolving toward integrated CMO dashboards for executing cross-channel campaigns Data, analytics, and automation are increasingly important componentsDigital Marketing Strategic Activity is Concentrated Among a Relatively Small Number of ‘Serial Acquirers’ 21 major market participants across 4 key sectors: Agencies, Software, Platforms, and Publishers Others acquirers exist, but tend to make tuck-in buys in a sporadic fashionInterest in Inorganic Expansion in the Digital Marketing Sector Has Broadened Beyond the Traditional InternetPlatform Players Google, Yahoo!, Microsoft, AOL, WPP, and Publicis formerly viewed as the end-game Strategic buyer ecosystem has broadened materially in recent years, most notably into the traditional horizontal software playersStrategic Activity Has Concentrated in a Handful of ‘Hot’ Sectors of Late Buyers continue to orient their M&A strategies around key growth sectors Data / Analytics, Social, Mobile, Content, eCommerce, and Digital Agencies have attracted significant investmentNo Market Participant Has Assembled a Complete Stack Solution, as Yet Google has made the most aggressive moves to-date Adobe, IBM, Oracle, and Salesforce.com beginning to make interesting moves as they target the ‘Marketing Cloud’________________________________________________Source: Blackstone. Blackstone 40
  • 42. Social Mobile Video $40 $30III. M&A Perspectives $20 $10 $0 1995 1999 2003 2007 2012 Audience Consolidation Targeting /Digital Marketing Strategic Activity: Historical Perspective / M&A RTB Data / Analytics Digital Marketing M&A activity has grown steadily post-2008 levels, from both a volume and size perspective.Transaction Volume Transaction Value# of Deals YoY % Change Deal Value, $bn Average Deal Size, $mm1,000 960 90.0% $75 $125 845 $64 800 60.0% $60 $100 758 674 614 600 570 30.0% $45 $75 519 $36 $32 400 0.0% $30 $28 $27 $50 321 295 $20 214 $16 200 179 (30.0%) $15 $13 $15 $25 $7 $5 0 (60.0%) $0 $0 2003 2012 2002 2004 2005 2006 2007 2008 2009 2010 2011 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Number of Deals YoY % Change in # of Deals Deal Value ($ in Billions) Avg. Deal Size ($ in Millions)________________________________________________Note: Includes disclosed deal values only.Source: The 451 Group, Thomson Financial. Blackstone 41
  • 43. Social Mobile Video $40 $30III. M&A Perspectives $20 $10 $0 1995 1999 2003 2007 2012 Audience Consolidation Targeting /The Digital Marketing Stack Continues to Consolidate / M&A RTB Data / Analytics A number of key players continue to consolidate the Digital Marketing stack through strategic M&A. Digital Marketing Stack Key Industry Consolidations Digital Agencies Agencies Channels Advertiser-Side Marketing Search Display Video Mobile Social Email Automation Software Data / Analytics Platforms Networks Ad Servers and Exchanges Publishers Publisher-Side eCommerce Optimization SSPs Content________________________________________________Source: Blackstone. Blackstone 42
  • 44. Social Mobile Video $40 $30III. M&A Perspectives $20 $10 $0 1995 1999 2003 2007 2012 Audience Consolidation 2012(1) Targeting /Digital Marketing Strategic M&A Chessboard: 2007 – / M&A RTB Data / Analytics Agencies Software Platforms Publishers •••••••••• •••••••••• •••••••••• •••••••••• •••••••••• • • • • ••• ••••• •••••••••• •••••••••• •••••••••• •••••••••• •••••••••• •••••••••• ••••••••• •••••••• •••••••••• ••••••••••Services •••••••••• •••••••••• •••••••••• Digital Agencies ••••• •••••••••• •••••••••• •••••••••• •••••••••• •••••••• •••••••••• •••••••••• •••••••••• • Search • ••• ••• Display ••• Video • • • Advertiser-Side Mobile • •• • •• •• • • •• ••••• ••• Social • • ••• ••• • •• • Email • •Software Marketing Automation • • •• • Data / Analytics • • •••• • •••• ••• • • •• •• • • • Networks • • •••• • •• •••• • Ad Servers / Exchanges •• • • ••••• ••••• ••••• eCommerce •• • • •• •• • ••••• ••••• ••• • • ••• • •• •••• Publisher-Side Optimization • •• • •• •• SSPs • ••••• ••••• ••••• ••••• ••••• Content • • • • ••••• ••••• • •• ••••• • • ••••• •••••________________________________________________ • ••••• •Source: The 451 Group, Capital IQ, company websites and news releases. • = 1 Transaction(1) Data represents strategic transactions in the Digital Marketing sector only. Blackstone 43
  • 45. Social Mobile Video $40 $30III. M&A Perspectives $20 $10 $0 1995 1999 2003 2007 2012 Audience Consolidation Targeting /Strategic Buyer Observations / M&A RTB Data / Analytics The Digital Marketing ecosystem has changed dramatically as various players have increasingly leveraged M&A as a strategic capability.Buyers from Multiple Sectors are Converging on the Digital Marketing Opportunity Agencies, Software, Platforms, and Publishers represent core segments of activityBuyers, Historically, Have Tended to Stay Close to Home Agencies have rarely bought technology eCommerce and Publisher players have historically bought within their core sectorsA Small Number of True Stack Players Exist Google, Adobe are the furthest along; each has accomplished stack convergence, in part, through M&A of strategic capabilities it did not own Examples include Google buying into Display and Mobile, Adobe buying into Site Optimization and VideoSector Cross-over is Beginning to Emerge IT Services increasing Digital Marketing presence and vice-versa Traditional horizontal software players moving aggressively into marketing vertical Commerce players, such as Amazon, moving into Display Advertising (organically, thus far)M&A is Becoming a Strategic Capability Innovation is difficult for many large companies; M&A in the Digital Marketing sector has served as a method for strategics to acquire R&D, key personnel, and expertise Those companies who have been consistent and successful acquirers have tended to perform well financially and in the equity markets________________________________________________Source: Blackstone. Blackstone 44
  • 46. Social Mobile Video $40 $30III. M&A Perspectives $20 $10 $0 1995 1999 2003 2007 2012 Audience Consolidation Targeting / / M&AA Wide Range of Activity in the Digital Marketing Landscape Exists Across Market Participants RTB Data / Analytics Strategic activity in Digital Marketing varies widely by participant. WPP, Microsoft, Google, and Gannett lead their respective sectors in terms of the number of transactions completed.Number of Digital Marketing Transactions by Strategic Buyer(# of Deals, 2007-2012)70100 97 716050 4740 37 31 2930 23 20 2020 18 18 18 16 9 8 810 6 6 4 2 1 0 Agencies Software Platforms Publishers________________________________________________Source: The 451 Group, Capital IQ, company websites and news releases. Blackstone 45
  • 47. Social Mobile Video $40 $30III. M&A Perspectives $20 $10 $0 1995 1999 2003 2007 2012 Audience Consolidation Targeting / / M&ADigital Marketing Strategic Activity Momentum by Buyer – Two-Year Perspective (2011 – 2012) RTB Data / Analytics Deal ‘momentum’ in the Digital Marketing sector varies considerably by participant. Low High Agencies Software Platforms Publishers________________________________________________Source: The 451 Group, Capital IQ, company websites and news releases.Note: Position on timeline based on total number of transactions from 1/1/2011 to 12/31/2012 relative to peers within given sector. Size of circle represents the aggregate total enterprise value of transactions by each company from 1/1/2011 to 12/31/2012, relative to peers within given sector. Transactions with undisclosed enterprise value are assumed to contribute a size of $25mm to the aggregate total enterprise value. Blackstone 46
  • 48. Social Mobile Video $40 $30III. M&A Perspectives $20 $10 $0 1995 1999 2003 2007 2012 Audience Consolidation Targeting /Valuation Trends / M&A RTB Data / Analytics Valuations in Digital Marketing are driven by growth, scalability, scarcity, synergy potential / fit, and a competitive dynamic among the relevant buyer universe.Divergence Exists in the Multiples Paid by Various M&A Participants Platform and Software players have paid nearly 2x the multiple of Publishers and Agencies, on averageValuations in Digital Marketing are a Function of Growth and Scalability Interactive agencies and other services businesses tend to have low margins, lower growth and low scalability, and as such achieve lower multiples Software and platform companies tend to trade at high multiples due to above average growth prospects and higher profitabilityStrategic Assets Command Strategic Valuations Assets in sectors viewed as being highly strategic, such as mobile and social, command premium valuations ‘Scarce’ assets that either have achieved scale in a sector, or have a differentiated and strategic technology also command a valuation premium • YouTube, Admob, Buddy Media represent notable examples Other key valuation drivers include: fostering a competitive dynamic among relevant buyers, synergies, and defensive reasonsGoogle has been the Most Prolific and Aggressive Acquirer 37 deals across nearly every segment of the stack Highest aggregate value and multiple paid (for disclosed deals)________________________________________________Source: Blackstone. Blackstone 47
  • 49. Social Mobile Video $40 $30III. M&A Perspectives $20 $10 $0 1995 1999 2003 2007 2012 Audience Consolidation 2012(1) Targeting /Valuation Trends: 2007 – / M&A RTB Data / AnalyticsDigital Marketing Transactions by Valuation Multiple and Size = $500 million 20x $ in millions Summary Statistics # of Deals Agg. Enterprise Value Avg. EV per Deal Median Multiple 18x Agencies 275 $18,923 $69 2.4x Software 50 19,921 398 5.2x 16x Platforms 123 19,271 157 6.7x Publishers 41 4,059 99 3.5x Total 489 $62,174 $127 4.4x Median Transaction TEV/LTM Revenue 14x 12x 10x 8x 6x 4x 2x 0x 0 10 20 30 40 50 60 70 80 90 100 110 Total # of Transactions Agencies Software Media Platforms Publishers________________________________________________Source: The 451 Group, Capital IQ, company websites and news releases.Note: Size of circle represents the aggregate total enterprise value of transactions by each company. Transactions with undisclosed enterprise value are assumed to contribute a size of $25mm to the aggregate total enterprise value.Facebook, IPG, and Omnicom excluded from graph due to unavailable transaction enterprise value data; total number of deals for Facebook, IPG, and Omnicom: 6, 29, and 31, respectively.(1) Data represents strategic transactions in the Digital Marketing sector only. Blackstone 48
  • 50. Social Mobile Video $40 $30III. M&A Perspectives $20 $10 $0 1995 1999 2003 2007 2012 Audience Consolidation Targeting /Sector Observations / M&A RTB Data / Analytics Digital Marketing strategic M&A is concentrated along a number of key sectors and themes.The Global Roll-up of Digital Agencies Continues Acquisitions in the sector tend to be of relatively small agencies (<$100 million), by the major holding companies WPP and Publicis represent ‘serial’ acquirers in the space‘Hot’ Sectors Have Garnered Significant Attention from Strategic Buyers Mobile, Social, and Data / Analytics have become strategic priorities, given growth characteristics Despite relative nascency, these sectors have quickly become highly-sought after capabilitiesM&A Activity among Networks and Exchanges has Waned ‘Plain-vanilla’ Ad Networks, in particular, are no longer viewed as strategic Interest among buyers has migrated to optimization around audiences, behavioral, predictive analytics • Ability to leverage data in real-time for precision targeting is viewed as criticalOn the Publisher Side, Consolidation Continues Among Content and Commerce Assets Amazon, eBay, and Google have made strong and consistent moves in the eCommerce arena AOL, Google, Gannet, and Hearst have been the predominant acquirers of Content assetsFuture M&A Will Concentrate on a Number of Key Themes Social will migrate from Fan Page management to Cross-channel Social Marketing Mobile networks less interesting to buyers; post-click optimization, mobile advertising ‘gamification’ gaining traction Optimization of Digital Marketing messages to custom audience segments Real-time Predictive Analytics, applied to marketing, will migrate from a nice-to-have to a must-have Marketing Automation is increasingly viewed as a strategic capability • Oracle / Eloqua, IBM / Unica, Teradata / Aprimo recent examples; expect more to follow________________________________________________Source: Blackstone. Blackstone 49
  • 51. Social Mobile Video $40 $30III. M&A Perspectives $20 $10 $0 1995 1999 2003 2007 2012 Audience Consolidation Targeting /Strategic Activity in Digital Marketing Varies Widely by Sector / M&A RTB Data / Analytics The highest volume of Digital Marketing transactions exists in the Digital Agency, Mobile, Social, Data / Analytics, Content, and eCommerce sectors.Number of Transactions by Target Sector(# of Deals, 2007-2012) 280 70 272 66 60 49 50 40 30 23 20 20 14 12 10 7 8 5 4 3 3 2 1 0 Mobile Social Search Automation Ad Servers / SSPs Optimization Networks Video Display Email Agencies Data / Analytics Content eCommerce Marketing Exchanges Digital Advertiser-Side Publisher-Side Services Software________________________________________________Source: The 451 Group, Capital IQ, company websites and news releases. Blackstone 50
  • 52. Appendix
  • 53. AppendixBiography: Ken Allen Ken Allen is a Managing Director in Blackstone Advisory Partners L.P., is a founding member of Blackstone’s Technology M&A practice, and leads the firm’s Digital Marketing and Cloud Computing Advisory efforts. Mr. Allen has advised hundreds of companies in his 15 years in the industry, and has successfully executed M&A transactions having an aggregate value of over $10 billion. Notable transactions Mr. Allen has advised on include Publicis’ $530 million acquisition of Razorfish from Microsoft, OrangeSoda’s sale to Deluxe Corporation, ClickSquared’s Series C Private Ken Allen Placement, Sapients acquisitions of The Nitro Group and Derivatives Consulting Group,Managing Director Compellent’s $960 million sale to Dell, Xeroxs $8.3 billion acquisition of ACS, and the £190 million sale of Xafinity to Advent International. Prior to joining Blackstone in 2007, Mr. Allen worked in Deutsche Banks Technology Group, where he focused on mergers and acquisitions, leveraged recapitalizations, leveraged buyouts, and equity financings for a range of companies including Infosys, Ciena, Intralinks, WNS, Stratus Technologies, Allot Communications, and Interwise. Mr. Allen received an MBA from the Tuck School of Business at Dartmouth, where he graduated as a Tuck Scholar. He also received his BE from Dartmouth in Electrical Engineering, where he graduated with summa cum laude and Phi Beta Kappa honors. Blackstone 52

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