SlideShare a Scribd company logo

Forbes digital gaming report fall 2020_v2

S
Sara Cody

forbes fall 2020 gaming report

1 of 37
Download to read offline
CONFIDENTIAL
D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0
IndustryReport–Fall/Winter2020
C O N F I D E N T I A L
DIGITAL GAMING
CONFIDENTIAL
D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0
Click to edit Master title style
CONFIDENTIAL
D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0
Agenda
I
Digital Gaming
Overview
II
The Forbes
M+A Group
Overview
III
Appendix
1
CONFIDENTIAL
D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0
I. Digital Gaming Overview
2
CONFIDENTIAL
D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0
3
TheGreatGamingBoomof2020Continuedw/MegaDeals,ViewershipRecords,andNext-GenMadness
DIGITAL GAMING OVERVIEW
Source(s): Twitch Tracker, Newzoo, Konvoy Ventures, The Esports Observers, The Verge
 Apple and Epic continue to feud over Apple’s app store practices (see our August 31st Flash Report for more info)
 Mobile game continue to grow in popularity as spending is up 15% YoY
 Buyers of Next-Gen consoles had problems trying to preorder as links were broken, carts were being emptied, and inventory quickly sold out due to bots
 Keeping in line with the preorders, there has been mass hysteria from consumers trying to secure Next-Gen consoles due to minimal supply and unprecedented demand
 Microsoft makes the largest acquisition in gaming, ZeniMax (Bethesda) for $7.5 billion, since Supercell was acquired by Tencent in 2016
 Unity and Corsair had big IPOs in Q3 (see our September 25th Flash Report for more info)
 The market continues to see through esports, as its biggest players see an average decline in stock price of 58% since 10/2019
 COVID shows no signs of slowing and as people continue to isolate, gaming is serving as a primary social catalyst in 2020 and beyond
“The wild ride that has been the Great Gaming Boom of 2020 continued in Q3 and through the early part of Q4 (as of publishing) with drama, deals, and
unprecedented consumer demand. The heavyweight bout between Apple and Epic rages on, while Unity blew away expectations with their IPO, and
Microsoft got serious, acquiring ZeniMax (Bethesda). Consumers are scrambling for the Next-Gen consoles and heading into Christmas, the supply /
demand curve is horribly askew as PlayStation 5s are selling for over $1k (double retail) on the secondary market as retailers lack inventory and Sony’s
production concerns from a few months ago appear to be coming to fruition. Buckle up as this ride is showing no signs of slowing down.”
JJ Lane – Head of Digital Gaming Group
x
CONFIDENTIAL
D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0
4
DigitalGamingOverview
Digital gaming consists of console, PC, and mobile games
and encompasses esports, streaming, and sponsorships.
Gaming is becoming more mainstream, merging the
casual and competitive scenes, reaching larger audiences
than ever before.
Mobile gaming is continuing to grow in popularity as the
mobile device population continues to boom.
Digital gaming is expected to reach $164.6B in revenue in
2020.
The U.S. and China are dominating the gaming universe
with nearly 50% of revenue market share.
DIGITAL GAMING OVERVIEW
~2.7 Billion
Gamers
Worldwide
33
Average Age of
a Gamer
+4.7 Billion
Hours Streamed
in 3Q 2020
Source(s): Newzoo, Twitch Tracker
x
CONFIDENTIAL
D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0
Fall Guys and Among Us Took the World by Storm
 Fall Guys launched on July 23rd and within a month had over 135 million
hours watched on Twitch
 At its peak it had 713k concurrent viewers on August 28th
 In less than two weeks after setting viewership records, viewership
dropped to 100k concurrent viewers as Among Us became increasingly
popular
 Among Us has been increasing in viewership, hitting an average of 200k in
September
 Discord is seeing lifetime highs for downloads every day since September
5th due to the popularity of Among Us and its need for communication
5
GetUptoSpeedinGamingforYourVirtualChristmasPartyTalkingPoints
DIGITAL GAMING OVERVIEW
Source(s): CapitalIQ, VGChartz. MSN, Polygon
x
The Next Gen Consoles Have Arrived…But In Limited Supply
Battle of Heavyweights Extends Beyond Gaming The 7 Days that Changed Gaming
vs.
 The dispute began over Apple’s 30% fee for in-app purchases and other
restrictions
– Epic introduced a bypass for purchases on IOS and Android and then
got itself removed from the App Store and Google’s Play Store
 Judge denies Epic’s motion to add Fortnite back to App Store and Apple
accuses the lawsuit of being a “marketing campaign”
 The Apple and Epic court date is set for May 3, 2021 and could have
implications across the entire app industry
 Unity debuted on the NYSE on September 18th. At open, the share price
was up 44% and closed at $68 a share, with an EV of $18 billion. As of
12/30, the EV increased 118%
 Three days later, Microsoft announced its acquisition of Zenimax Studios
and its game publisher Bethesda Softworks for $7.5 billion at an
estimated 6.0x EV / Revenue multiple
 On September 23rd, Corsair debuted its IPO for $17 a share and looked to
raise $238 million. The stock declined 16% on its first day of trading and
as of 12/7 it was sitting at ~$38 a share
 The PS5 launched on 11/12 and sold 2.1 – 2.5 million units in two days
– 75% of PS5s sold were the higher priced model
 Xbox Series X launched on 11/10 and sold 800k – 925k units in 24 hours,
making it the biggest launch in Xbox history
 Sony outspent Microsoft 3 to 1 in launch ads
 The resale market is getting wild with several threats from buyers as they
are faced not being able to get the next gen console or paying double
MSRP
 Supply chains issues are causing the delays for the consoles
CONFIDENTIAL
D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0
94
96 96
92
Jun-20 Jul-20 Aug-20 Sep-20
1,629
1,574
1,620
1,586
Jun-20 Jul-20 Aug-20 Sep-20
2.3
2.1
2.2
2.2
Jun-20 Jul-20 Aug-20 Sep-20
6
LargeandEver-ExpandingMarket
DIGITAL GAMING OVERVIEW
Source(s): Twitch Tracker as of 9/30/2020, Konvoy Ventures
2.2 million
Average Concurrent Viewers
1.6 billion
Average Hours Watched
(Viewers in Millions) (Hours in Millions)
210 million
North American Gamers94.5K
Average Concurrent Streamers
(Streamers in Millions)
Average concurrent viewers on Twitch sees a slight
decrease from 2Q, but still at record numbers
The average number of streamers increased in 3Q
Greater than 1/3 of the North American population is
playing video games
Hours watched on Twitch remained strong in 3Q
x
CONFIDENTIAL
D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0
$20.0
$17.4
2020 3Q 2019 3Q
7
DiverseGamingDemographics
DIGITAL GAMING OVERVIEW
($ in Millions)
x
21.0%
38.0%
26.0%
9.0%
6.0%
< 18 18 - 34 35 - 54 55 - 64 +65
Video
Game
Player Ages
73.0%
43.0%
19.0%
25.0%
Console Handheld
System
VR Device Mobile VR
Video Game Players by Age Mobile Game Spending is up 15% in YoY Devices Owned by Gamers
When People Play Years Spent Playing Video Games Why People Play(1)
After Work or School
51%
Waiting for
Appointment
30%
During a Break From
Work or School
26%
During a Commute
16%
21.0%
29.0%
25.0%
9.0%
1 - 5 6 - 14 15 - 24 +25
Connect With
Family and Friends
62.5%
Relaxation
80.0% 84.5%
Brain Stimulation
Note: (1) Percentages vary based on age range and gender
Source(s): Venture Beat, Theesa
CONFIDENTIAL
D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0
49%
25%
4%
22%
Source(s): Newzoo, Konvoy Ventures, Company Websites
DigitalGamingIndustryOutlook
DIGITAL GAMING OVERVIEW
U.S. and China Dominate the Global Gaming Market
2020 Total
$159.3B
+9.3% YoY
EUROPE, MIDDLE EAST & AFRICA
$35.0B
+11.2% YoY
NORTH-AMERICA
$40.0B
+8.5% YoY
LATIN AMERICA
$6.0B
+10.3% YoY
ASIA-PACIFIC
$78.4B
+9.9% YoY
CHINA TOTAL
$40.9B
U.S. TOTAL
$36.9B
49%
of all consumer spending on
gaming in 2020 came from
the U.S. and China.
$19.3 $20.4 $21.5 $22.6
$41.5 $43.0 $47.0 $51.0
$137.9
$151.9
$165.9
$180.3
2018 2019 2020 2021
Music
Films
Videogames
Global Gaming Is on the Rise With the Help of Smartphones
($ billions)
Gaming Sales Continue To Outpace Music and Movie Sales
[CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE]
[CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE][CELLRANGE] [CELLRANGE] [CELLRANGE]
[CELLRANGE]
[CELLRANGE]
[CELLRANGE]
[CELLRANGE]
[CELLRANGE]
[CELLRANGE]
[CELLRANGE]
[CELLRANGE]
[CELLRANGE]
[CELLRANGE]
[CELLRANGE]
[CELLRANGE]
2018 2019 2020 2021 2022
Smartphone Tablet Console Browser PC Boxed/Downloaded PC
$138.7
$164.6$152.1
$178.2
($ billions)
$196.0
The Top 5 Gaming Markets Are Nearing 1 Billion Combined Players
(Players in millions)
37.5
44.6
65.9
176.1
644.0
U.K.
Germany
Japan
U.S.
China
8
x
CONFIDENTIAL
D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0
DigitalGamingUniverse(1/5)
DIGITAL GAMING OVERVIEW
Hardware Augmented & Virtual Reality Streaming and Content
Technology
Fantasy Sports and Betting
esports Betting
9
Source(s): Konvoy Ventures, GP Bullhound Report
x
CONFIDENTIAL
D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0
DigitalGamingUniverse(2/5)
DIGITAL GAMING OVERVIEW
Developers
Publishers
User Generated Content
Major Games
Game Development
Related Services
Data Analytics Peer to Peer
Sponsors and Sponsorship Services
10
Source(s): Konvoy Ventures, GP Bullhound Report
x
Distribution
CONFIDENTIAL
D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0
DigitalGamingUniverse(3/5)
DIGITAL GAMING OVERVIEW
Engines Cloud Gaming
Additional Game Development & Services
11
Source(s): Konvoy Ventures, GP Bullhound Report
x
CONFIDENTIAL
D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0
DigitalGamingUniverse(4/5)
DIGITAL GAMING OVERVIEW
Teams Leagues/Organizers Competitions
Community
Conferences and Exhibitions Events
Professional Scene
Tournament Platforms Coaching Service Providers
Merchandise
Communications and Forums News Reporting Venues
12
Source(s): Konvoy Ventures, GP Bullhound Report
x
CONFIDENTIAL
D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0
DigitalGamingUniverse(5/5)
DIGITAL GAMING OVERVIEW
Advertising Payments
Other Gaming Services
13
Source(s): Konvoy Ventures, GP Bullhound Report
x
CONFIDENTIAL
D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0
$776.4
$957.5 $973.9
$1,598.2
2018 2019 2020 2023
Source(s): The Esports Observer, Newzoo, and CapitalIQ as of 12/7/2020
TheProfessionalSceneContinuestoExpandinSizeandPopularity…
DIGITAL GAMING OVERVIEW
Representative Companies
Professional esports
organization.
Game developer and
content provider
Value EV/Revenue
$400M 11.4x
$70M 15.4x
($ in thousands
esports Revenue Growth
1
2
3
Prize Pools Awarded in 1H 2020
$10.2M
$5.2M
$6.9M
14
15.5% CAGR
x
CONFIDENTIAL
D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
12/1/2019 1/1/2020 2/1/2020 3/1/2020 4/1/2020 5/1/2020 6/1/2020 7/1/2020 8/1/2020 9/1/2020 10/1/2020 11/1/2020
$400 $400 $320 $240 $210 $185 $175 $170 $165 $160
11.4x 13.8x
13.3x
6.9x
19.1x 20.6x
10.9x
21.3x
7.5x
16.0x
0.0x
5.0x
10.0x
15.0x
20.0x
$0
$100
$200
$300
$400
$500
Team
SoloMid
Cloud 9 Team Liquid FaZe Clan Immortals
Gaming Club
Gen.G Fnatic Envy Gaming G2 Sports 100 Thieves
…ButtheCurrentesportsModelMayBeaBubbleWaitingtoBurst
DIGITAL GAMING OVERVIEW
Teams Are Being Valued Like Tech Companies…
($ millions)
Median
EV/Revenue
Note(s): (1) TTM period is 12/31/2019 – 11/30/2020
Source(s): Twitch Tracker, Forbes, CapitalIQ, and Company Websites
...But Fail to Generate Revenue and Appear Overvalued…
15
Value EV/Revenue
13.6x
x
…While the Publicly Traded esports Companies Have Seen a Dramatic Decline Over the Last Year(1)
$88.0
$69.0
$52.0
$35.0
$2.0
MLB NHL NFL NBA Esports
esports
-96.0%
-56.3%
-16.5%
52.7%
CONFIDENTIAL
D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0
While the 9th Generation Looks More Crowded Than EverRecord Setting 9th Generation Console Launch
November 10, 2020 November 12, 2020Release Date
Manufacturer
PS5Xbox Series XConsole
Projected Sales(1) 42 million 64 million
Note: (1) Projected unit sales through 2024
Source(s): Company Websites, Forbes, Omdia Analysis, Bezinga
TheConsoleMarketisExplodingwiththeLaunchoftheNext-GenXboxandPlayStation…
DIGITAL GAMING OVERVIEW
16
x
800k – 925k (24 hours) 2.1 – 2.5 (first two days)Launch Day Unit Sales
May 2021 March 2021Readily Available Date
Secondary Market $835 $1,024
MSRP $499 $499
CONFIDENTIAL
D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0
10.0+
10.0+
13.3
16.0+
10.7
12.2
18.1
18.6
20.0
22.4
26.7
Game Sales Are At Record Highs
…WhileSoftwareStillPullsUsersBetweenPlatforms
DIGITAL GAMING OVERVIEW
PC Gaming Market Value Forecasts
(Units sold in millions)
Microsoft has stopped
disclosing sales numbers
for 1st party software
Mario Kart 8
Super Smash Bros. Ultimate
Mario Odyssey
Breath of the Wild
Pokémon Let’s Go
Splatoon 2
Spider-man
Horizon: Zero Dawn
Uncharted 4
God of War
Halo 5
Gears of War 5
Forza
= Sony
= Nintendo
= Microsoft
($ billions)
$26.6
$28.0
$29.6
$31.4
$33.6
2016 2017 2018 2019 2020
17
Gaming Market Value Forecasts
4.8% CAGR
Source(s): Newzoo, Company Websites
Animal Crossing: New Horizons
x
CONFIDENTIAL
D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0
6.63
6.97
8.35
9.2
16.0
Rubius
Myth
shroud
Tfue
Ninja
60 77 86 95 101
120 107 105 100
126
210 209
4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
2017 2018 2019 2020
789 952 1,044 1,120 1,162 1,287 1,267 1,265 1,206 1,468 2,370 2,165
27
36 39 43 46
56 49 48 45
58
96 95
0
20
40
60
80
100
120
0
500
1,000
1,500
2,000
2,500
4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
2017 2018 2019 2020
1,740 2,037 2,279 2,444 2,563 2,776 2,767 2,794 2,661
3,210
5,175 4,780
4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
2017 2018 2019 2020
StreamingViewershipContinuestoGrow
DIGITAL GAMING OVERVIEW
Twitch Exceeds 1.2B Average Concurrent Viewers in 2018
(Hours in millions)
Top Streamers Are Gaining Millions of Followers
(Viewers and Channels in thousands)
(Followers in millions)
18
Source(s): Twitch Tracker as of 9/30/20
Twitch Average Viewers and Channels Stays Flat in 3Q3Q Continues Strong Trend in Hours Watched
Viewers Channels
Twitch Exceeds 1.2B Average Concurrent Viewers in 2018
(Hours in millions)
Hours of Content Produced Stays Elevated
x
CONFIDENTIAL
D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0
$584.1
$163.3
$543.7
$158.0
Sponsorship Media Rights
2020 2019
Sponsorship and Media Revenues Are Adjusted Down
MainstreamBrandsContinuetoInvestinVideoGames
DIGITAL GAMING OVERVIEW
Select Endemic Sponsors
Select Non-Endemic Sponsors
($ millions)
19
Source(s): The Esports Observer, Newzoo
7.4%
YoY Growth
3.3%
YoY Growth
x
CONFIDENTIAL
D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0
0.00%
50.00%
100.00%
150.00%
200.00%
250.00%
300.00%
350.00%
400.00%
450.00%
500.00%
Sep-01-2015 Sep-01-2016 Sep-01-2017 Sep-01-2018 Sep-01-2019 Sep-01-2020
GamingFurtherSeparatesItselfFromtheBroaderMarket
DIGITAL GAMING OVERVIEW
20
Source(s):CapitalIQ as of 12/7/20; Note: (1) Activision Blizzard, Electronic Arts, Take Two Interactive, Ubisoft, Zynga, CD Projekt, Embracer Group, Stillfront Group, Paradox Interactive, Glu Mobile, Kahoot!, Ten Square Games, Frontier Developments, Team17
Group, Codemasters Group, Rovio Entertainment, Sumo Group, and G5 Entertainment
x
Index Value Growth
424.8%
170.1%
92.9%
Gaming Index(1) S&P 500NASDAQ Composite
CONFIDENTIAL
D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0
29.9x
6.7x
29.8x
20.2x 21.2x 19.1x
65.1x
23.0x 20.4x
11.1x 10.0x 5.8x
27.2x
1.0x 2.0x 3.0x 4.0x 5.0x 6.0x 7.0x 8.0x 9.0x 10.0x 11.0x 12.0x 13.0x 14.0x
5.4x 0.9x 7.6x
5.8x 5.2x
2.7x
22.6x
10.6x 3.4x 3.7x
1.6x 0.9x
15.2x
1.9x
1.0x 2.0x 3.0x 4.0x 5.0x 6.0x 7.0x 8.0x 9.0x 10.0x 11.0x 12.0x 13.0x 14.0x
SelectPublicCompanies
DIGITAL GAMING OVERVIEW
Median EV/Revenue
Median: 4.5x
Game Development – Mobile Games
Game Development – Developer/Publisher
Technology - Hardware
Technology – Streaming/Content
Median EV/EBITDA
Median: 20.4x
Game Development – Mobile Games
Game Development – Developer/Publisher
Technology - Hardware
Technology – Streaming/Content
21
NM
Source(s):CapitalIQ as of 12/7/20; Note: “NM” only applies to multiples less than zero.
x
CONFIDENTIAL
D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0
7.3x
6.3x
6.0x*
5.4x 5.2x 5.2x
3.6x 3.4x
2.8x
0.8x
Candywriter Big Blue Bubble ZeniMax Media Saber Interactive Funcom Pipeworks Eko Software Storm8 UMG Media roccat
Source(s): CapitalIQ as of 12/7/20, Company Websites ; “*” Deutsche Bank estimate
SelectPrecedentTransactions
DIGITAL GAMING OVERVIEW
EV/Revenue
Median: 5.2x
Target:
Acquirer:
22
x
CONFIDENTIAL
D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0
II. The Forbes M+A Overview
23
CONFIDENTIAL
D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0
TheForbesM+AGroup
THE FORBES M+A OVERVIEW
Senior-level
attention and
transaction
leadership
Focused,
dedicated
transaction
teams
Vertical and
industry
focused
expertise
Unbiased,
trusted
advisory
services
Quality of
service and
execution over
quantity
Track record
of successful
outcomes
 Founded in 2004 with offices located in Denver, Colorado & Salt Lake
City, Utah
 Transaction sizes ranging from $10M — $200M
 Nationwide clientele with global market reach
 Nationwide clientele with global market reach
 Swarm transactions with senior advisors, with more than $85B and
250 years of combined experience
Rocky Mountain West boutique investment banking advisory firm focused on closely held companies with strong growth stories
and market dominant products or services.
Focused on Excellence in Execution…
Middle
Market
Leader
24
CONFIDENTIAL
D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0
TheForbesM+ATransactionTeam
THE FORBES M+A OVERVIEW
Head of Digital
Gaming Group
303.872.6445
JJ.Lane@ForbesMA.com
Industry leading veterans that possess a
depth and breadth of experience across
both M&A and private industry as founders,
operators, advisors, and executives.
JJ Lane
Bob Forbes
President
Bill Nack
Partner / Managing
Director
Dan Pellegrino
Partner / Managing
Director
Jon Wiley
Partner / Managing
Director
Garit Lawson
Managing Director
Steve Quisenberry
Managing Director
James Morgan
Managing Director
Doug Freyschlag
Director
Blake Shear
Director
JJ Lane
Vice President
Cassie Dobos
Associate
Bryce Dietz
Analyst
Jarred Olson
Analyst
Liam Narozanick
Analyst
John Kiernan
Analyst
25
CONFIDENTIAL
D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0
26
SoftwareasaService(“SaaS”)IndustryReport
TheForbesM+AGroupAdvantage
THE FORBES M+A OVERVIEW
EVERY DETAIL COUNTS.™
In managing the ownership transition of a closely-held company, the old adage that
“the devil is in the details” is widely underestimated.
At THE FORBES M+A GROUP, we are hyper vigilant about details – not only based on
the merits of the phrase above but because, as our tagline reveals, we recognize the
“deals” are also in those details. The best deals. The ones that offer the most
strategic and financial value to all of the key stakeholders involved in the transaction.
We fully grasp and
internalize clients’
goals.
We understand clients’
businesses exhaustively
and tell their stories
meticulously.
We design a
comprehensive
blueprint of each
client’s best future.
We find ideal targets,
not just the easy ones,
and compel them to
compete.
We advocate fiercely
for our clients,
creating extraordinary
outcomes.
CONFIDENTIAL
D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0
27
SoftwareasaService(“SaaS”)IndustryReport
WhatClientsandAdvisorsSay
THE FORBES M+A OVERVIEW
“Their industry knowledge, relationships
with buyers, extensive transaction
experience, and adaptive and creative
deal making were essential in achieving
an outcome that met our goals.”
~ Tres Coors, CEO of Novelty Lights
“Their guidance was invaluable
as we reviewed offers and
negotiated a deal structure that
was exactly what we needed.”
~ Doug Larson, President at
Eldorado Artesian Springs
“Forbes is like a bulldog with a
rag in its mouth. If there is a deal
that serves the interests of their
client, those guys don’t let go
until it crosses the finish line.”
~ Bob Roth, Partner at Kutak Rock
“They exceeded every expectation
by taking the time to understand
our objectives, delivering the best
possible partner and terms.”
~ Christine Crane, CEO of BoldLeads
“We wanted to entrust the
business to an advisor with
similar core values and high-
quality standards.”
~ Tom Tolkacz, CEO of Swingle
“PASCO selected The Forbes M+A
Group amongst competing advisory
firms because of their reputation for
identifying excellent strategic
partners.”
~ Ryan Zeiger, CEO of PASCO
“From identifying the perfect
buyer, to maximizing our value,
and ultimately continuing our
legacy, the Forbes M+A team was
there from start to finish.”
~ Stephanie White, CEO of Top Gun
“The Forbes M+A Group was
recommended to us as a
company that would truly partner
with us to achieve our goals.”
~ Mike Franklin, President of
TouchSource
CONFIDENTIAL
D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0
SoftwareasaService(“SaaS”)IndustryReport
TrustedbytheWorld’sTopFinancialInstitutions
THE FORBES M+A OVERVIEW
Forbes has developed strategic partnerships with some of the largest financial institutions in the world with its
strong reputation for servicing the middle market.
28
CONFIDENTIAL
D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0
Click to edit Master title style
CONFIDENTIAL
D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0
29
2020
CONFIDENTIAL
D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0
III. Appendix
30
CONFIDENTIAL
D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0
Date Target Buyer / Investor(s) Target Description Target Category Transaction Type
Implied EV
($ in millions) EV / Revenue EV / EBITDA
Nov-20 Axion Ventures Inc. Monaker Group Axion Ventures, an investment issuer, primarily focuses on
investments in the online video gaming sector and other information
technology sectors.
Game Development Merger/Acquisition $31.9 na na
Nov-20 Snapshot Games Inc. Saber Interactive Snapshot Games develops and publishes video games. Game Development Merger/Acquisition na na na
Oct-20 IronOak Games Inc. Curve Digital Publishing IronOak Games develops video games for PC and Console. Game Development Merger/Acquisition na na na
Oct-20 Metro VR Studios Gaensel Energy Group Metro VR Studios is an indie VR development studio. Game Development Merger/Acquisition na na na
Oct-20 Enhance Experience, Inc. Mobcast Holdings Enhance Experience, Inc. develops and publishes games using VR,
AR, MR, and XR technologies.
Game Development Merger/Acquisition na na na
Sep-20 Pipeworks Sumo Group Pipeworks Inc develops IP games. Game Development Merger/Acquisition $100.1 5.2x 23.8x
Sep-20 NEON Media The 4D Factory NEON Media operates as a production company that develops and
design games.
Game Development Merger/Acquisition na na na
Sep-20 ZeniMax Media Microsoft Corporation ZeniMax Media operates as a video game publisher. Game Development Merger/Acquisition $7,500.0 6.0x* na
Sep-20 WorldGaming Network Playfully WorldGaming Network owns and operates an electronic sports and
competitive online video gaming platform.
Community Merger/Acquisition na na na
Sep-20 Reflector Entertainment BANDAI NAMCO Entertainment
Europe
Reflector Entertainment designs and develops videogames, movies,
comics, and other media for cross-platform storytelling.
Game Development Merger/Acquisition $15.0 na na
Aug-20 Big Blue Bubble Enad Global 7 Big Blue Bubble develops and publishes video games. Mobile Games Merger/Acquisition $75.9 6.3x 21.7x
Aug-20 One Up Group Engine Media Holdings One Up Group operates as a mobile game companywhich allows
gamers to organize and play one-on-one matches with other
gamers.
Mobile Games Merger/Acquisition $14.6 na na
Aug-20 Playdots Take-Two Interactive Software Playdots develops mobile games. Mobile Games Merger/Acquisition $192.0 na na
Aug-20 Cold Iron Studios Daybreak Game Company Cold Iron Studios develops mobile, console, and personal computer
games.
Mobile Games Merger/Acquisition na na na
Jul-20 Wordie Three Gates Wordie develops an mobile game application. Mobile Games Merger/Acquisition $0.2 na na
SoftwareasaService(“SaaS”)IndustryReport
SelectDigitalGamingM&ATransactions(1/3)
VALUATION SUPPORT
31
Source(s):CapitalIQ as of 12/7/20; “*” Deutsche Bank estimate
x
CONFIDENTIAL
D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0
Date Target Buyer / Investor(s) Target Description Target Category Transaction Type
Implied EV
($ in millions) EV / Revenue EV / EBITDA
Jul-20 Wordie Three Gates Wordie develops an mobile game application. Mobile Games Merger/Acquisition $0.2 na na
Jun-20 Ready At Dawn Studios Facebook Technologies Ready At Dawn Studios develops video games. Game Development Merger/Acquisition na na na
Jun-20 Peak Games Zynga Peak Games develops multiplayer mobile games in Turkey and the
Middle East and North Africa (MENA) region.
Mobile Games Merger/Acquisition $1,934.0 na na
Jun-20 Gaming licenses of Majesco
Entertainment Company
Ziggurat Interactive Gaming licenses of Majesco Entertainment Company including
BloodRayne.
Game Development Merger/Acquisition na na na
Jun-20 LetsGoRacing Torque Esports LetsGoRacing comprises a YouTube channel that broadcasts
motorsport and esports racing content.
Community Merger/Acquisition $1.6 na na
Apr-20 PierPlay Scopely PierPlay engaged in development of mobile video games. Game Development Merger/Acquisition na na na
Apr-20 3DO games catalog of Prism
Entertainment
Ziggurat Interactive 3DO games catalog of Prism Entertainment comprises game
licenses.
Game Development Merger/Acquisition na na na
Apr-20 Candywriter Stillfront Group Candywriter develops and publishes mobile games. Game Development Merger/Acquisition $204.0 7.3x 12.7x
Feb-20 DriverDB Torque Esports DriverDB AB provides data to racing drivers and general motorsport
industry.
Community Merger/Acquisition $0.8 na na
Apr-20 Hypixel Studios Riot Games Hypixel Studios designs and develops computer games. Game Development Merger/Acquisition na na na
Apr-20 Moneyweek Torque Esports Moneyweek operates an online motor sports community for
motorsport enthusiasts, industry influencers, and Formula 1 teams,
as well as former drivers.
Community Merger/Acquisition $0.5 na na
Mar-20 MTD Gaming Ainsworth Game Technology MTD Gaming develops and supplies computer games. Game Development Merger/Acquisition $26.0 na na
Feb-20 Saber Interactive Embracer Group Saber Interactive develops online interactive games in the United
States.
Game Development Merger/Acquisition $596.2 5.4x 9.2x
Feb-20 Kolibri Games Ubisoft Entertainment Kolibri Games operates as a mobile games company. Mobile Games Merger/Acquisition na na na
Jan-20 Phoenix Labs Garena Online Private Phoenix Labs develops games for personal computers. Game Development Merger/Acquisition na na na
SoftwareasaService(“SaaS”)IndustryReport
SelectDigitalGamingM&ATransactions(2/3)
VALUATION SUPPORT
32
Source(s):CapitalIQ as of 12/7/20
x
CONFIDENTIAL
D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0
SoftwareasaService(“SaaS”)IndustryReport
SelectDigitalGamingM&ATransactions(3/3)
VALUATION SUPPORT
33
Source(s):CapitalIQ as of 12/7/20
x
Date Target Buyer / Investor(s) Target Description Target Category Transaction Type
Implied EV
($ in millions) EV / Revenue EV / EBITDA
Jan-20 Phoenix Labs Garena Online Private Phoenix Labs develops games for personal computers. Game Development Merger/Acquisition na na na
Jan-20 Streamlabs Logitech International Streamlabs develops Streamlabs application that provides in-stream
popup alerts.
Community Merger/Acquisition $130.3 na na
Jan-20 Funcom Tencent Cloud Europe Funcom develops and publishes massively multiplayer online games
for PCs and consoles worldwide.
Game Development Merger/Acquisition $1,223.5 5.2x 11.3x
Jan-20 FoxNext Games Scopely FoxNext develops virtual and augmented reality, mobile,
console/personal computer games, and location-based
entertainment for studio's film and television operations.
Game Development Merger/Acquisition na na na
Jan-20 Storm8 Stillfront Group Storm8 develops social mobile games for the iPhone, iPod Touch,
and Android devices.
Mobile Games Merger/Acquisition $403.9 3.4x 6.6x
Dec-19 Typhoon Studios Google Typhoon Studios is an independent game developer. Game Development Merger/Acquisition na na na
Median $88.0 5.4x 12.0x
Mean $691.7 5.5x 14.2x
CONFIDENTIAL
D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0
Stock % of Equity
Price 52 Week Market Enterprise EV / Revenue EV / EBITDA
Company 12/7/2020 High Cap Value LTM LTM
Game Development - Mobile Games
Zynga Inc. (NasdaqGS:ZNGA) $8.79 82% $9,474 $9,451 5.4x 29.9x
Glu Mobile Inc. (NasdaqGS:GLUU) $9.65 89% $1,658 $1,380 2.7x 94.3x
Rovio Entertainment Oyj (HLSE:ROVIO) $5.95 81% $434 $294 0.9x 6.7x
Mean 84.0% $3,855 $3,708 3.0x 43.6x
Median 82.2% $1,658 $1,380 2.7x 29.9x
Stock % of Equity
Price 52 Week Market Enterprise EV / Revenue EV / EBITDA
Company 12/7/2020 High Cap Value LTM LTM
Game Development - Publisher/Developer
Microsoft Corporation (NasdaqGS:MSFT) $214.37 92% $1,620,668 $1,565,935 10.6x 23.0x
Tencent Holdings Limited (SEHK:700) $76.45 12% $716,246 $731,878 10.9x 30.3x
Sony Corporation (TSE:6758) $94.47 1% $114,812 $127,383 1.6x 11.1x
Activision Blizzard, Inc. (NasdaqGS:ATVI) $81.40 93% $62,509 $58,511 7.6x 20.2x
Nintendo Co., Ltd. (TSE:7974) $551.21 1% $66,201 $52,833 3.4x 10.0x
Electronic Arts Inc. (NasdaqGS:EA) $129.19 88% $37,301 $32,509 5.8x 21.2x
Unity Software Inc. (NYSE:U) $151.90 97% $40,871 $39,238 NM NM
Take-Two Interactive Software, Inc. (Nasdaq:TTWO) $181.38 98% $19,784 $17,577 5.2x 29.8x
BANDAI NAMCO Holdings Inc. (TSE:7832) $90.71 1% $19,830 $18,442 2.7x 19.1x
Ubisoft Entertainment SA (ENXTPA:UBI) $94.99 112% $11,620 $12,157 6.3x NM
Square Enix Holdings Co., Ltd. (TSE:9684) $61.47 1% $7,199 $5,911 2.0x 11.1x
Capcom Co., Ltd. (TSE:9697) $57.05 1% $6,100 $5,493 6.7x 19.6x
Mean 50% $226,928 $222,322 5.7x 19.5x
Median 50% $39,086 $35,874 5.8x 19.9x
SoftwareasaService(“SaaS”)IndustryReport
PubliclyTradedCompanies(1/3)
VALUATION SUPPORT
$ millions, except per share data
34
Source(s):CapitalIQ as of 12/7/20; Note: “NM” only applies to multiples less than zero.
x
CONFIDENTIAL
D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0
Stock % of Equity
Price 52 Week Market Enterprise EV / Revenue EV / EBITDA
Company 12/7/2020 High Cap Value LTM LTM
Technology - Hardware
Microsoft Corporation (NasdaqGS:MSFT) $214.37 92% $1,620,668 $1,565,935 10.6x 23.0x
Alphabet Inc. (NasdaqGS:GOOG.L) $1,815.55 98% $1,235,035 $1,129,534 6.6x 23.5x
NVIDIA Corporation (NasdaqGS:NVDA) $544.05 92% $335,702 $333,244 22.6x 65.1x
Sony Corporation (TSE:6758) $94.47 1% $114,812 $127,383 1.6x 11.1x
Advanced Micro Devices, Inc. (Nasdaq:AMD) $94.95 99% $113,231 $112,038 13.0x 78.2x
Nintendo Co., Ltd. (TSE:7974) $551.21 1% $66,201 $52,833 3.4x 10.0x
Seagate Technology plc (NasdaqGS:STX) $63.78 99% $16,462 $19,048 1.9x 11.0x
Logitech International S.A. (SWX:LOGN) $87.20 97% $14,556 $13,647 3.7x 20.4x
Corsair Gaming, Inc. (NasdaqGS:CRSR) $35.62 69% $3,280 $3,561 2.4x 22.7x
Plantronics, Inc. (NYSE:PLT) $27.70 79% $1,064 $2,486 1.6x 19.8x
Razer Inc. (SEHK:1337) $0.31 11% $2,837 $2,260 2.5x NM
Turtle Beach Corporation (NasdaqGM:HEAR) $19.97 87% $303 $281 0.9x 5.8x
Mean 69% $293,679 $280,187 5.9x 26.4x
Median 90% $41,331 $35,940 2.9x 20.4x
Stock % of Equity
Price 52 Week Market Enterprise EV / Revenue EV / EBITDA
Company 12/7/2020 High Cap Value LTM LTM
Professional Scene
Enthusiast Gaming Holdings Inc. (TSX:EGLX) $2.41 74% $249 $272 9.1x NM
Engine Media Holdings, Inc. (TSXV:GAME) $0.55 2% $55 $64 15.6x NM
Allied Esports Entertainment Inc. (NasdaqCM:AESE) $1.08 18% $37 $39 1.7x NM
Gfinity plc (AIM:GFIN) $0.05 109% $39 $37 6.7x NM
Super League Gaming, Inc. (NasdaqCM:SLGG) $2.19 34% $33 $24 15.6x NM
Guild Esports Plc (LSE:GILD) $0.08 85% $41 $40 NA NA
Mean 54% $76 $79 9.8x NM
Median 54% $40 $39 9.1x NM
SoftwareasaService(“SaaS”)IndustryReport
PubliclyTradedCompanies(2/3)
VALUATION SUPPORT
$ millions, except per share data
35
Source(s):CapitalIQ as of 12/7/20; Note: “NM” only applies to multiples less than zero.
x
CONFIDENTIAL
D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0
Stock % of Equity
Price 52 Week Market Enterprise EV / Revenue EV / EBITDA
Company 12/7/2020 High Cap Value LTM LTM
Technology - Streaming & Content
Sea Limited (NYSE:SE) $200.00 98% $98,190 $96,822 27.0x NM
Bilibili Inc. (NasdaqGS:BILI) $68.56 100% $23,553 $22,801 15.2x NM
HUYA Inc. (NYSE:HUYA) $19.00 62% $4,471 $2,894 1.9x 27.2x
Mean 87% $42,071 $40,839 14.7x 27.2x
Median 98% $23,553 $22,801 15.2x 27.2x
Aggregate Metrics
Mean 63% $177,376 $171,229 6.9x 25.8x
Median 83% $15,509 $15,612 5.3x 20.4x
SoftwareasaService(“SaaS”)IndustryReport
PubliclyTradedCompanies(3/3)
VALUATION SUPPORT
36
$ millions, except per share data
Source(s):CapitalIQ as of 12/7/20; Note: “NM” only applies to multiples less than zero.
x

Recommended

Let the games begin - Insights into the Gaming Industry
Let the games begin - Insights into the Gaming IndustryLet the games begin - Insights into the Gaming Industry
Let the games begin - Insights into the Gaming IndustryBharath Rao
 
The future of the gaming industry - Trends and scenarios
The future of the gaming industry - Trends and scenariosThe future of the gaming industry - Trends and scenarios
The future of the gaming industry - Trends and scenariosThanos Papadopoulos
 
Global Gaming Software Market, 2026
Global Gaming Software Market, 2026Global Gaming Software Market, 2026
Global Gaming Software Market, 2026TechSci Research
 
NATO Modelling and Simulation (M&S) Group Symposium MSG177 Presentation - 23 ...
NATO Modelling and Simulation (M&S) Group Symposium MSG177 Presentation - 23 ...NATO Modelling and Simulation (M&S) Group Symposium MSG177 Presentation - 23 ...
NATO Modelling and Simulation (M&S) Group Symposium MSG177 Presentation - 23 ...Andy Fawkes
 
Forbes M+A Digital Gaming Report Spring 2020
Forbes M+A Digital Gaming Report Spring 2020Forbes M+A Digital Gaming Report Spring 2020
Forbes M+A Digital Gaming Report Spring 2020JJLane
 

More Related Content

What's hot

Forbes M+A Digital Gaming Report Spring 2020
Forbes M+A Digital Gaming Report Spring 2020Forbes M+A Digital Gaming Report Spring 2020
Forbes M+A Digital Gaming Report Spring 2020Sara Cody
 
The Future Of Gaming Industry in India
The Future Of Gaming Industry in IndiaThe Future Of Gaming Industry in India
The Future Of Gaming Industry in Indiaknowafest.com
 
Mobile Gaming Asia: Market and Forecast Analysis
Mobile Gaming Asia: Market and Forecast AnalysisMobile Gaming Asia: Market and Forecast Analysis
Mobile Gaming Asia: Market and Forecast AnalysisKabir Ahmad
 
Digitization in game industry act2: the cloud
Digitization in game industry act2: the cloudDigitization in game industry act2: the cloud
Digitization in game industry act2: the cloudIcônes Ecoles Créatives
 
Unstoppable Rise of Competitive Gaming on Mobile | Tom Wijman
Unstoppable Rise of Competitive Gaming on Mobile | Tom WijmanUnstoppable Rise of Competitive Gaming on Mobile | Tom Wijman
Unstoppable Rise of Competitive Gaming on Mobile | Tom WijmanJessica Tams
 
Global Social Gaming Market, Size, Share, Industry Trends & Forecast Report 2...
Global Social Gaming Market, Size, Share, Industry Trends & Forecast Report 2...Global Social Gaming Market, Size, Share, Industry Trends & Forecast Report 2...
Global Social Gaming Market, Size, Share, Industry Trends & Forecast Report 2...BlueWeave Consulting Pvt Ltd
 
3 d display market ppt
3 d display market ppt3 d display market ppt
3 d display market pptCindyChan91
 
NY Games Conference 2009
NY Games Conference 2009NY Games Conference 2009
NY Games Conference 2009SuperData
 
Product Brochure: Global Digital Gaming Market 2019
Product Brochure: Global Digital Gaming Market 2019Product Brochure: Global Digital Gaming Market 2019
Product Brochure: Global Digital Gaming Market 2019yStats.com
 
Winter 2020 forbes digital gaming report
Winter 2020 forbes digital gaming reportWinter 2020 forbes digital gaming report
Winter 2020 forbes digital gaming reportSara Cody
 
UK Games Industry Report
UK Games Industry ReportUK Games Industry Report
UK Games Industry ReportRichie King
 
Unlocking indonesia's esports potentials 2021
Unlocking indonesia's esports potentials 2021Unlocking indonesia's esports potentials 2021
Unlocking indonesia's esports potentials 2021Ossy Indra Wardhani
 
Mobile social gaming market guide
Mobile social gaming market guideMobile social gaming market guide
Mobile social gaming market guideSoko Media
 
Pc gaming market and e sports industry
Pc gaming market and e sports industryPc gaming market and e sports industry
Pc gaming market and e sports industryKevin Huang
 

What's hot (20)

Forbes M+A Digital Gaming Report Spring 2020
Forbes M+A Digital Gaming Report Spring 2020Forbes M+A Digital Gaming Report Spring 2020
Forbes M+A Digital Gaming Report Spring 2020
 
The Future Of Gaming Industry in India
The Future Of Gaming Industry in IndiaThe Future Of Gaming Industry in India
The Future Of Gaming Industry in India
 
Mobile Gaming Asia: Market and Forecast Analysis
Mobile Gaming Asia: Market and Forecast AnalysisMobile Gaming Asia: Market and Forecast Analysis
Mobile Gaming Asia: Market and Forecast Analysis
 
Digitization in game industry act2: the cloud
Digitization in game industry act2: the cloudDigitization in game industry act2: the cloud
Digitization in game industry act2: the cloud
 
Pecha Kucha Talks
Pecha Kucha Talks Pecha Kucha Talks
Pecha Kucha Talks
 
Mobile video game market trends & stakes
Mobile video game market trends & stakesMobile video game market trends & stakes
Mobile video game market trends & stakes
 
Unstoppable Rise of Competitive Gaming on Mobile | Tom Wijman
Unstoppable Rise of Competitive Gaming on Mobile | Tom WijmanUnstoppable Rise of Competitive Gaming on Mobile | Tom Wijman
Unstoppable Rise of Competitive Gaming on Mobile | Tom Wijman
 
Global Social Gaming Market, Size, Share, Industry Trends & Forecast Report 2...
Global Social Gaming Market, Size, Share, Industry Trends & Forecast Report 2...Global Social Gaming Market, Size, Share, Industry Trends & Forecast Report 2...
Global Social Gaming Market, Size, Share, Industry Trends & Forecast Report 2...
 
Global game industry outlook 2012-2016
Global game industry outlook 2012-2016Global game industry outlook 2012-2016
Global game industry outlook 2012-2016
 
3 d display market ppt
3 d display market ppt3 d display market ppt
3 d display market ppt
 
Global digital gaming market 2017-2022
Global digital gaming market 2017-2022 Global digital gaming market 2017-2022
Global digital gaming market 2017-2022
 
NY Games Conference 2009
NY Games Conference 2009NY Games Conference 2009
NY Games Conference 2009
 
Product Brochure: Global Digital Gaming Market 2019
Product Brochure: Global Digital Gaming Market 2019Product Brochure: Global Digital Gaming Market 2019
Product Brochure: Global Digital Gaming Market 2019
 
IDEA - Opportunities in the Games Industry - 15 November 2011
IDEA - Opportunities in the Games Industry  - 15 November 2011IDEA - Opportunities in the Games Industry  - 15 November 2011
IDEA - Opportunities in the Games Industry - 15 November 2011
 
Winter 2020 forbes digital gaming report
Winter 2020 forbes digital gaming reportWinter 2020 forbes digital gaming report
Winter 2020 forbes digital gaming report
 
UK Games Industry Report
UK Games Industry ReportUK Games Industry Report
UK Games Industry Report
 
Good Gaming Investor Deck December
Good Gaming Investor Deck DecemberGood Gaming Investor Deck December
Good Gaming Investor Deck December
 
Unlocking indonesia's esports potentials 2021
Unlocking indonesia's esports potentials 2021Unlocking indonesia's esports potentials 2021
Unlocking indonesia's esports potentials 2021
 
Mobile social gaming market guide
Mobile social gaming market guideMobile social gaming market guide
Mobile social gaming market guide
 
Pc gaming market and e sports industry
Pc gaming market and e sports industryPc gaming market and e sports industry
Pc gaming market and e sports industry
 

Similar to Forbes digital gaming report fall 2020_v2

Forbes Digital Gaming Report Summer 2020
Forbes Digital Gaming Report Summer 2020Forbes Digital Gaming Report Summer 2020
Forbes Digital Gaming Report Summer 2020Sara Cody
 
Wiem, że nic nie wiem - moja krótka analiza rynku gier na Łódź Game Summit 2014
Wiem, że nic nie wiem - moja krótka analiza rynku gier na Łódź Game Summit 2014Wiem, że nic nie wiem - moja krótka analiza rynku gier na Łódź Game Summit 2014
Wiem, że nic nie wiem - moja krótka analiza rynku gier na Łódź Game Summit 2014Tomek Kreczmar
 
Launching PC & Console Titles in the Ever-Changing Games Market in 2023
Launching PC & Console Titles in the Ever-Changing Games Market in 2023Launching PC & Console Titles in the Ever-Changing Games Market in 2023
Launching PC & Console Titles in the Ever-Changing Games Market in 2023Harsha MV
 
Forbes digital gaming report_spring 2021_final
Forbes digital gaming report_spring 2021_finalForbes digital gaming report_spring 2021_final
Forbes digital gaming report_spring 2021_finalSara Cody
 
Gaming Update London Games Conference
Gaming Update London Games ConferenceGaming Update London Games Conference
Gaming Update London Games ConferenceAdvance A/S
 
Game Industry - trends
Game Industry - trendsGame Industry - trends
Game Industry - trendsVictory Media
 
Kuwait gaming headset marketing research
Kuwait gaming headset marketing researchKuwait gaming headset marketing research
Kuwait gaming headset marketing researchJiaweiJacksonZhao
 
Panel Discussion: Is content eating the world?
Panel Discussion: Is content eating the world?Panel Discussion: Is content eating the world?
Panel Discussion: Is content eating the world?The GSMA
 
Gaming and eSports for Brands
Gaming and eSports for BrandsGaming and eSports for Brands
Gaming and eSports for BrandsFalk Ebert
 
Assassin's Creed III - Liberation
Assassin's Creed III - LiberationAssassin's Creed III - Liberation
Assassin's Creed III - LiberationAshton Parker
 
The Microeconomics Of The Video Game Industry Essay
The Microeconomics Of The Video Game Industry EssayThe Microeconomics Of The Video Game Industry Essay
The Microeconomics Of The Video Game Industry EssayKatrina Green
 
Industry Analysis
Industry AnalysisIndustry Analysis
Industry AnalysisPeter Zhang
 
Data and the Future of Gaming Post COVID
Data and the Future of Gaming Post COVIDData and the Future of Gaming Post COVID
Data and the Future of Gaming Post COVIDData Con LA
 
BCG sequoia mobile gaming report
BCG sequoia mobile gaming reportBCG sequoia mobile gaming report
BCG sequoia mobile gaming reportSocial Samosa
 

Similar to Forbes digital gaming report fall 2020_v2 (20)

Forbes Digital Gaming Report Summer 2020
Forbes Digital Gaming Report Summer 2020Forbes Digital Gaming Report Summer 2020
Forbes Digital Gaming Report Summer 2020
 
Industria Gaming 2023
Industria Gaming 2023Industria Gaming 2023
Industria Gaming 2023
 
Wiem, że nic nie wiem - moja krótka analiza rynku gier na Łódź Game Summit 2014
Wiem, że nic nie wiem - moja krótka analiza rynku gier na Łódź Game Summit 2014Wiem, że nic nie wiem - moja krótka analiza rynku gier na Łódź Game Summit 2014
Wiem, że nic nie wiem - moja krótka analiza rynku gier na Łódź Game Summit 2014
 
Launching PC & Console Titles in the Ever-Changing Games Market in 2023
Launching PC & Console Titles in the Ever-Changing Games Market in 2023Launching PC & Console Titles in the Ever-Changing Games Market in 2023
Launching PC & Console Titles in the Ever-Changing Games Market in 2023
 
Forbes digital gaming report_spring 2021_final
Forbes digital gaming report_spring 2021_finalForbes digital gaming report_spring 2021_final
Forbes digital gaming report_spring 2021_final
 
Gaming Update London Games Conference
Gaming Update London Games ConferenceGaming Update London Games Conference
Gaming Update London Games Conference
 
Game Industry - trends
Game Industry - trendsGame Industry - trends
Game Industry - trends
 
Kuwait gaming headset marketing research
Kuwait gaming headset marketing researchKuwait gaming headset marketing research
Kuwait gaming headset marketing research
 
Panel Discussion: Is content eating the world?
Panel Discussion: Is content eating the world?Panel Discussion: Is content eating the world?
Panel Discussion: Is content eating the world?
 
Gaming and eSports for Brands
Gaming and eSports for BrandsGaming and eSports for Brands
Gaming and eSports for Brands
 
Assassin's Creed III - Liberation
Assassin's Creed III - LiberationAssassin's Creed III - Liberation
Assassin's Creed III - Liberation
 
Short Gamestop
Short Gamestop Short Gamestop
Short Gamestop
 
Gaming industry
Gaming industryGaming industry
Gaming industry
 
The Microeconomics Of The Video Game Industry Essay
The Microeconomics Of The Video Game Industry EssayThe Microeconomics Of The Video Game Industry Essay
The Microeconomics Of The Video Game Industry Essay
 
Industry Analysis
Industry AnalysisIndustry Analysis
Industry Analysis
 
Data and the Future of Gaming Post COVID
Data and the Future of Gaming Post COVIDData and the Future of Gaming Post COVID
Data and the Future of Gaming Post COVID
 
The Future of Trade: Special Gaming Edition
The Future of Trade: Special Gaming Edition The Future of Trade: Special Gaming Edition
The Future of Trade: Special Gaming Edition
 
Gaming Edition
Gaming EditionGaming Edition
Gaming Edition
 
BCG sequoia mobile gaming report
BCG sequoia mobile gaming reportBCG sequoia mobile gaming report
BCG sequoia mobile gaming report
 
2013 cartoon digital
2013 cartoon digital2013 cartoon digital
2013 cartoon digital
 

More from Sara Cody

Forbes MA Current Deal List
Forbes MA Current Deal ListForbes MA Current Deal List
Forbes MA Current Deal ListSara Cody
 
4Q20 Forbes Market Update
4Q20 Forbes Market Update4Q20 Forbes Market Update
4Q20 Forbes Market UpdateSara Cody
 
The forbes m+a group 2021 ma market outlook v final
The forbes m+a group 2021 ma market outlook v finalThe forbes m+a group 2021 ma market outlook v final
The forbes m+a group 2021 ma market outlook v finalSara Cody
 
2 q 20_forbes market update_final
2 q 20_forbes market update_final2 q 20_forbes market update_final
2 q 20_forbes market update_finalSara Cody
 
Spring 2020 Forbes M&A Industry Report Death care
Spring 2020 Forbes M&A Industry Report Death careSpring 2020 Forbes M&A Industry Report Death care
Spring 2020 Forbes M&A Industry Report Death careSara Cody
 
The Forbes M+A Goup industrial focus
The Forbes M+A Goup industrial focusThe Forbes M+A Goup industrial focus
The Forbes M+A Goup industrial focusSara Cody
 
Food & beverage report spring 2020
Food & beverage report spring 2020Food & beverage report spring 2020
Food & beverage report spring 2020Sara Cody
 
200108 saa s industry overview - final (002)
200108 saa s industry overview - final (002)200108 saa s industry overview - final (002)
200108 saa s industry overview - final (002)Sara Cody
 

More from Sara Cody (8)

Forbes MA Current Deal List
Forbes MA Current Deal ListForbes MA Current Deal List
Forbes MA Current Deal List
 
4Q20 Forbes Market Update
4Q20 Forbes Market Update4Q20 Forbes Market Update
4Q20 Forbes Market Update
 
The forbes m+a group 2021 ma market outlook v final
The forbes m+a group 2021 ma market outlook v finalThe forbes m+a group 2021 ma market outlook v final
The forbes m+a group 2021 ma market outlook v final
 
2 q 20_forbes market update_final
2 q 20_forbes market update_final2 q 20_forbes market update_final
2 q 20_forbes market update_final
 
Spring 2020 Forbes M&A Industry Report Death care
Spring 2020 Forbes M&A Industry Report Death careSpring 2020 Forbes M&A Industry Report Death care
Spring 2020 Forbes M&A Industry Report Death care
 
The Forbes M+A Goup industrial focus
The Forbes M+A Goup industrial focusThe Forbes M+A Goup industrial focus
The Forbes M+A Goup industrial focus
 
Food & beverage report spring 2020
Food & beverage report spring 2020Food & beverage report spring 2020
Food & beverage report spring 2020
 
200108 saa s industry overview - final (002)
200108 saa s industry overview - final (002)200108 saa s industry overview - final (002)
200108 saa s industry overview - final (002)
 

Recently uploaded

Establishing data sharing standards to promote global industry development
Establishing data sharing standards to promote global industry developmentEstablishing data sharing standards to promote global industry development
Establishing data sharing standards to promote global industry developmentThorsten Huelsmann
 
What’s New in CloudStack 4.19, Abhishek Kumar, Release Manager Apache CloudSt...
What’s New in CloudStack 4.19, Abhishek Kumar, Release Manager Apache CloudSt...What’s New in CloudStack 4.19, Abhishek Kumar, Release Manager Apache CloudSt...
What’s New in CloudStack 4.19, Abhishek Kumar, Release Manager Apache CloudSt...ShapeBlue
 
eXtended Reality(XR) Basic introductions
eXtended Reality(XR) Basic introductionseXtended Reality(XR) Basic introductions
eXtended Reality(XR) Basic introductionsElanthirayan Madhavan
 
Roundtable_-_API_Research__Testing_Tools.pdf
Roundtable_-_API_Research__Testing_Tools.pdfRoundtable_-_API_Research__Testing_Tools.pdf
Roundtable_-_API_Research__Testing_Tools.pdfMostafa Higazy
 
Artificial Intelligence - AI For Everyone
Artificial Intelligence - AI For EveryoneArtificial Intelligence - AI For Everyone
Artificial Intelligence - AI For EveryoneSridhar Seshadri
 
iOncologi_Pitch Deck_2024 slide show for hostinger
iOncologi_Pitch Deck_2024 slide show for hostingeriOncologi_Pitch Deck_2024 slide show for hostinger
iOncologi_Pitch Deck_2024 slide show for hostingerssuser9354ce
 
Key projects in AI, ML and Generative AI
Key projects in AI, ML and Generative AIKey projects in AI, ML and Generative AI
Key projects in AI, ML and Generative AIVijayananda Mohire
 
Mind your App Footprint 🐾⚡️🌱 (@FlutterHeroes 2024)
Mind your App Footprint 🐾⚡️🌱 (@FlutterHeroes 2024)Mind your App Footprint 🐾⚡️🌱 (@FlutterHeroes 2024)
Mind your App Footprint 🐾⚡️🌱 (@FlutterHeroes 2024)François
 
AMER Introduction to ThousandEyes Webinar
AMER Introduction to ThousandEyes WebinarAMER Introduction to ThousandEyes Webinar
AMER Introduction to ThousandEyes WebinarThousandEyes
 
Geospatial Synergy: Amplifying Efficiency with FME & Esri
Geospatial Synergy: Amplifying Efficiency with FME & EsriGeospatial Synergy: Amplifying Efficiency with FME & Esri
Geospatial Synergy: Amplifying Efficiency with FME & EsriSafe Software
 
Why Disability Justice should be at the core of your digital accessibility jo...
Why Disability Justice should be at the core of your digital accessibility jo...Why Disability Justice should be at the core of your digital accessibility jo...
Why Disability Justice should be at the core of your digital accessibility jo...Modality Co
 
Communities, networking and developer culture
Communities, networking and developer cultureCommunities, networking and developer culture
Communities, networking and developer cultureRavi Sanghani
 
GDG Cloud Southlake 30 Brian Demers Breeding 10x Developers with Developer Pr...
GDG Cloud Southlake 30 Brian Demers Breeding 10x Developers with Developer Pr...GDG Cloud Southlake 30 Brian Demers Breeding 10x Developers with Developer Pr...
GDG Cloud Southlake 30 Brian Demers Breeding 10x Developers with Developer Pr...James Anderson
 
Elevating Cloud Infrastructure with Object Storage, DRS, VM Scheduling, and D...
Elevating Cloud Infrastructure with Object Storage, DRS, VM Scheduling, and D...Elevating Cloud Infrastructure with Object Storage, DRS, VM Scheduling, and D...
Elevating Cloud Infrastructure with Object Storage, DRS, VM Scheduling, and D...ShapeBlue
 
MuleSoft Online Meetup Group - B2B Crash Course: PM Insider Lecture
MuleSoft Online Meetup Group - B2B Crash Course: PM Insider LectureMuleSoft Online Meetup Group - B2B Crash Course: PM Insider Lecture
MuleSoft Online Meetup Group - B2B Crash Course: PM Insider LectureManik S Magar
 
Microsoft x 2toLead Webinar Session 2 - How Employee Learning and Development...
Microsoft x 2toLead Webinar Session 2 - How Employee Learning and Development...Microsoft x 2toLead Webinar Session 2 - How Employee Learning and Development...
Microsoft x 2toLead Webinar Session 2 - How Employee Learning and Development...2toLead Limited
 
ChatGPT's Code Interpreter: Your secret weapon for SEO automation success - S...
ChatGPT's Code Interpreter: Your secret weapon for SEO automation success - S...ChatGPT's Code Interpreter: Your secret weapon for SEO automation success - S...
ChatGPT's Code Interpreter: Your secret weapon for SEO automation success - S...SearchNorwich
 
Large Language Models and Applications in Healthcare
Large Language Models and Applications in HealthcareLarge Language Models and Applications in Healthcare
Large Language Models and Applications in HealthcareAsma Ben Abacha
 
Low Latency at Extreme Scale: Proven Practices & Pitfalls
Low Latency at Extreme Scale: Proven Practices & PitfallsLow Latency at Extreme Scale: Proven Practices & Pitfalls
Low Latency at Extreme Scale: Proven Practices & PitfallsScyllaDB
 

Recently uploaded (20)

Establishing data sharing standards to promote global industry development
Establishing data sharing standards to promote global industry developmentEstablishing data sharing standards to promote global industry development
Establishing data sharing standards to promote global industry development
 
What’s New in CloudStack 4.19, Abhishek Kumar, Release Manager Apache CloudSt...
What’s New in CloudStack 4.19, Abhishek Kumar, Release Manager Apache CloudSt...What’s New in CloudStack 4.19, Abhishek Kumar, Release Manager Apache CloudSt...
What’s New in CloudStack 4.19, Abhishek Kumar, Release Manager Apache CloudSt...
 
eXtended Reality(XR) Basic introductions
eXtended Reality(XR) Basic introductionseXtended Reality(XR) Basic introductions
eXtended Reality(XR) Basic introductions
 
Roundtable_-_API_Research__Testing_Tools.pdf
Roundtable_-_API_Research__Testing_Tools.pdfRoundtable_-_API_Research__Testing_Tools.pdf
Roundtable_-_API_Research__Testing_Tools.pdf
 
Artificial Intelligence - AI For Everyone
Artificial Intelligence - AI For EveryoneArtificial Intelligence - AI For Everyone
Artificial Intelligence - AI For Everyone
 
iOncologi_Pitch Deck_2024 slide show for hostinger
iOncologi_Pitch Deck_2024 slide show for hostingeriOncologi_Pitch Deck_2024 slide show for hostinger
iOncologi_Pitch Deck_2024 slide show for hostinger
 
Key projects in AI, ML and Generative AI
Key projects in AI, ML and Generative AIKey projects in AI, ML and Generative AI
Key projects in AI, ML and Generative AI
 
Mind your App Footprint 🐾⚡️🌱 (@FlutterHeroes 2024)
Mind your App Footprint 🐾⚡️🌱 (@FlutterHeroes 2024)Mind your App Footprint 🐾⚡️🌱 (@FlutterHeroes 2024)
Mind your App Footprint 🐾⚡️🌱 (@FlutterHeroes 2024)
 
AMER Introduction to ThousandEyes Webinar
AMER Introduction to ThousandEyes WebinarAMER Introduction to ThousandEyes Webinar
AMER Introduction to ThousandEyes Webinar
 
Geospatial Synergy: Amplifying Efficiency with FME & Esri
Geospatial Synergy: Amplifying Efficiency with FME & EsriGeospatial Synergy: Amplifying Efficiency with FME & Esri
Geospatial Synergy: Amplifying Efficiency with FME & Esri
 
Why Disability Justice should be at the core of your digital accessibility jo...
Why Disability Justice should be at the core of your digital accessibility jo...Why Disability Justice should be at the core of your digital accessibility jo...
Why Disability Justice should be at the core of your digital accessibility jo...
 
Communities, networking and developer culture
Communities, networking and developer cultureCommunities, networking and developer culture
Communities, networking and developer culture
 
GDG Cloud Southlake 30 Brian Demers Breeding 10x Developers with Developer Pr...
GDG Cloud Southlake 30 Brian Demers Breeding 10x Developers with Developer Pr...GDG Cloud Southlake 30 Brian Demers Breeding 10x Developers with Developer Pr...
GDG Cloud Southlake 30 Brian Demers Breeding 10x Developers with Developer Pr...
 
Elevating Cloud Infrastructure with Object Storage, DRS, VM Scheduling, and D...
Elevating Cloud Infrastructure with Object Storage, DRS, VM Scheduling, and D...Elevating Cloud Infrastructure with Object Storage, DRS, VM Scheduling, and D...
Elevating Cloud Infrastructure with Object Storage, DRS, VM Scheduling, and D...
 
MuleSoft Online Meetup Group - B2B Crash Course: PM Insider Lecture
MuleSoft Online Meetup Group - B2B Crash Course: PM Insider LectureMuleSoft Online Meetup Group - B2B Crash Course: PM Insider Lecture
MuleSoft Online Meetup Group - B2B Crash Course: PM Insider Lecture
 
Microsoft x 2toLead Webinar Session 2 - How Employee Learning and Development...
Microsoft x 2toLead Webinar Session 2 - How Employee Learning and Development...Microsoft x 2toLead Webinar Session 2 - How Employee Learning and Development...
Microsoft x 2toLead Webinar Session 2 - How Employee Learning and Development...
 
ChatGPT's Code Interpreter: Your secret weapon for SEO automation success - S...
ChatGPT's Code Interpreter: Your secret weapon for SEO automation success - S...ChatGPT's Code Interpreter: Your secret weapon for SEO automation success - S...
ChatGPT's Code Interpreter: Your secret weapon for SEO automation success - S...
 
Large Language Models and Applications in Healthcare
Large Language Models and Applications in HealthcareLarge Language Models and Applications in Healthcare
Large Language Models and Applications in Healthcare
 
Low Latency at Extreme Scale: Proven Practices & Pitfalls
Low Latency at Extreme Scale: Proven Practices & PitfallsLow Latency at Extreme Scale: Proven Practices & Pitfalls
Low Latency at Extreme Scale: Proven Practices & Pitfalls
 
Sue Loth: Job Search Strategies using personal connections
Sue Loth: Job Search Strategies using personal connectionsSue Loth: Job Search Strategies using personal connections
Sue Loth: Job Search Strategies using personal connections
 

Forbes digital gaming report fall 2020_v2

  • 1. CONFIDENTIAL D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0 IndustryReport–Fall/Winter2020 C O N F I D E N T I A L DIGITAL GAMING
  • 2. CONFIDENTIAL D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0 Click to edit Master title style CONFIDENTIAL D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0 Agenda I Digital Gaming Overview II The Forbes M+A Group Overview III Appendix 1
  • 3. CONFIDENTIAL D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0 I. Digital Gaming Overview 2
  • 4. CONFIDENTIAL D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0 3 TheGreatGamingBoomof2020Continuedw/MegaDeals,ViewershipRecords,andNext-GenMadness DIGITAL GAMING OVERVIEW Source(s): Twitch Tracker, Newzoo, Konvoy Ventures, The Esports Observers, The Verge  Apple and Epic continue to feud over Apple’s app store practices (see our August 31st Flash Report for more info)  Mobile game continue to grow in popularity as spending is up 15% YoY  Buyers of Next-Gen consoles had problems trying to preorder as links were broken, carts were being emptied, and inventory quickly sold out due to bots  Keeping in line with the preorders, there has been mass hysteria from consumers trying to secure Next-Gen consoles due to minimal supply and unprecedented demand  Microsoft makes the largest acquisition in gaming, ZeniMax (Bethesda) for $7.5 billion, since Supercell was acquired by Tencent in 2016  Unity and Corsair had big IPOs in Q3 (see our September 25th Flash Report for more info)  The market continues to see through esports, as its biggest players see an average decline in stock price of 58% since 10/2019  COVID shows no signs of slowing and as people continue to isolate, gaming is serving as a primary social catalyst in 2020 and beyond “The wild ride that has been the Great Gaming Boom of 2020 continued in Q3 and through the early part of Q4 (as of publishing) with drama, deals, and unprecedented consumer demand. The heavyweight bout between Apple and Epic rages on, while Unity blew away expectations with their IPO, and Microsoft got serious, acquiring ZeniMax (Bethesda). Consumers are scrambling for the Next-Gen consoles and heading into Christmas, the supply / demand curve is horribly askew as PlayStation 5s are selling for over $1k (double retail) on the secondary market as retailers lack inventory and Sony’s production concerns from a few months ago appear to be coming to fruition. Buckle up as this ride is showing no signs of slowing down.” JJ Lane – Head of Digital Gaming Group x
  • 5. CONFIDENTIAL D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0 4 DigitalGamingOverview Digital gaming consists of console, PC, and mobile games and encompasses esports, streaming, and sponsorships. Gaming is becoming more mainstream, merging the casual and competitive scenes, reaching larger audiences than ever before. Mobile gaming is continuing to grow in popularity as the mobile device population continues to boom. Digital gaming is expected to reach $164.6B in revenue in 2020. The U.S. and China are dominating the gaming universe with nearly 50% of revenue market share. DIGITAL GAMING OVERVIEW ~2.7 Billion Gamers Worldwide 33 Average Age of a Gamer +4.7 Billion Hours Streamed in 3Q 2020 Source(s): Newzoo, Twitch Tracker x
  • 6. CONFIDENTIAL D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0 Fall Guys and Among Us Took the World by Storm  Fall Guys launched on July 23rd and within a month had over 135 million hours watched on Twitch  At its peak it had 713k concurrent viewers on August 28th  In less than two weeks after setting viewership records, viewership dropped to 100k concurrent viewers as Among Us became increasingly popular  Among Us has been increasing in viewership, hitting an average of 200k in September  Discord is seeing lifetime highs for downloads every day since September 5th due to the popularity of Among Us and its need for communication 5 GetUptoSpeedinGamingforYourVirtualChristmasPartyTalkingPoints DIGITAL GAMING OVERVIEW Source(s): CapitalIQ, VGChartz. MSN, Polygon x The Next Gen Consoles Have Arrived…But In Limited Supply Battle of Heavyweights Extends Beyond Gaming The 7 Days that Changed Gaming vs.  The dispute began over Apple’s 30% fee for in-app purchases and other restrictions – Epic introduced a bypass for purchases on IOS and Android and then got itself removed from the App Store and Google’s Play Store  Judge denies Epic’s motion to add Fortnite back to App Store and Apple accuses the lawsuit of being a “marketing campaign”  The Apple and Epic court date is set for May 3, 2021 and could have implications across the entire app industry  Unity debuted on the NYSE on September 18th. At open, the share price was up 44% and closed at $68 a share, with an EV of $18 billion. As of 12/30, the EV increased 118%  Three days later, Microsoft announced its acquisition of Zenimax Studios and its game publisher Bethesda Softworks for $7.5 billion at an estimated 6.0x EV / Revenue multiple  On September 23rd, Corsair debuted its IPO for $17 a share and looked to raise $238 million. The stock declined 16% on its first day of trading and as of 12/7 it was sitting at ~$38 a share  The PS5 launched on 11/12 and sold 2.1 – 2.5 million units in two days – 75% of PS5s sold were the higher priced model  Xbox Series X launched on 11/10 and sold 800k – 925k units in 24 hours, making it the biggest launch in Xbox history  Sony outspent Microsoft 3 to 1 in launch ads  The resale market is getting wild with several threats from buyers as they are faced not being able to get the next gen console or paying double MSRP  Supply chains issues are causing the delays for the consoles
  • 7. CONFIDENTIAL D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0 94 96 96 92 Jun-20 Jul-20 Aug-20 Sep-20 1,629 1,574 1,620 1,586 Jun-20 Jul-20 Aug-20 Sep-20 2.3 2.1 2.2 2.2 Jun-20 Jul-20 Aug-20 Sep-20 6 LargeandEver-ExpandingMarket DIGITAL GAMING OVERVIEW Source(s): Twitch Tracker as of 9/30/2020, Konvoy Ventures 2.2 million Average Concurrent Viewers 1.6 billion Average Hours Watched (Viewers in Millions) (Hours in Millions) 210 million North American Gamers94.5K Average Concurrent Streamers (Streamers in Millions) Average concurrent viewers on Twitch sees a slight decrease from 2Q, but still at record numbers The average number of streamers increased in 3Q Greater than 1/3 of the North American population is playing video games Hours watched on Twitch remained strong in 3Q x
  • 8. CONFIDENTIAL D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0 $20.0 $17.4 2020 3Q 2019 3Q 7 DiverseGamingDemographics DIGITAL GAMING OVERVIEW ($ in Millions) x 21.0% 38.0% 26.0% 9.0% 6.0% < 18 18 - 34 35 - 54 55 - 64 +65 Video Game Player Ages 73.0% 43.0% 19.0% 25.0% Console Handheld System VR Device Mobile VR Video Game Players by Age Mobile Game Spending is up 15% in YoY Devices Owned by Gamers When People Play Years Spent Playing Video Games Why People Play(1) After Work or School 51% Waiting for Appointment 30% During a Break From Work or School 26% During a Commute 16% 21.0% 29.0% 25.0% 9.0% 1 - 5 6 - 14 15 - 24 +25 Connect With Family and Friends 62.5% Relaxation 80.0% 84.5% Brain Stimulation Note: (1) Percentages vary based on age range and gender Source(s): Venture Beat, Theesa
  • 9. CONFIDENTIAL D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0 49% 25% 4% 22% Source(s): Newzoo, Konvoy Ventures, Company Websites DigitalGamingIndustryOutlook DIGITAL GAMING OVERVIEW U.S. and China Dominate the Global Gaming Market 2020 Total $159.3B +9.3% YoY EUROPE, MIDDLE EAST & AFRICA $35.0B +11.2% YoY NORTH-AMERICA $40.0B +8.5% YoY LATIN AMERICA $6.0B +10.3% YoY ASIA-PACIFIC $78.4B +9.9% YoY CHINA TOTAL $40.9B U.S. TOTAL $36.9B 49% of all consumer spending on gaming in 2020 came from the U.S. and China. $19.3 $20.4 $21.5 $22.6 $41.5 $43.0 $47.0 $51.0 $137.9 $151.9 $165.9 $180.3 2018 2019 2020 2021 Music Films Videogames Global Gaming Is on the Rise With the Help of Smartphones ($ billions) Gaming Sales Continue To Outpace Music and Movie Sales [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE][CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] 2018 2019 2020 2021 2022 Smartphone Tablet Console Browser PC Boxed/Downloaded PC $138.7 $164.6$152.1 $178.2 ($ billions) $196.0 The Top 5 Gaming Markets Are Nearing 1 Billion Combined Players (Players in millions) 37.5 44.6 65.9 176.1 644.0 U.K. Germany Japan U.S. China 8 x
  • 10. CONFIDENTIAL D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0 DigitalGamingUniverse(1/5) DIGITAL GAMING OVERVIEW Hardware Augmented & Virtual Reality Streaming and Content Technology Fantasy Sports and Betting esports Betting 9 Source(s): Konvoy Ventures, GP Bullhound Report x
  • 11. CONFIDENTIAL D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0 DigitalGamingUniverse(2/5) DIGITAL GAMING OVERVIEW Developers Publishers User Generated Content Major Games Game Development Related Services Data Analytics Peer to Peer Sponsors and Sponsorship Services 10 Source(s): Konvoy Ventures, GP Bullhound Report x Distribution
  • 12. CONFIDENTIAL D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0 DigitalGamingUniverse(3/5) DIGITAL GAMING OVERVIEW Engines Cloud Gaming Additional Game Development & Services 11 Source(s): Konvoy Ventures, GP Bullhound Report x
  • 13. CONFIDENTIAL D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0 DigitalGamingUniverse(4/5) DIGITAL GAMING OVERVIEW Teams Leagues/Organizers Competitions Community Conferences and Exhibitions Events Professional Scene Tournament Platforms Coaching Service Providers Merchandise Communications and Forums News Reporting Venues 12 Source(s): Konvoy Ventures, GP Bullhound Report x
  • 14. CONFIDENTIAL D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0 DigitalGamingUniverse(5/5) DIGITAL GAMING OVERVIEW Advertising Payments Other Gaming Services 13 Source(s): Konvoy Ventures, GP Bullhound Report x
  • 15. CONFIDENTIAL D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0 $776.4 $957.5 $973.9 $1,598.2 2018 2019 2020 2023 Source(s): The Esports Observer, Newzoo, and CapitalIQ as of 12/7/2020 TheProfessionalSceneContinuestoExpandinSizeandPopularity… DIGITAL GAMING OVERVIEW Representative Companies Professional esports organization. Game developer and content provider Value EV/Revenue $400M 11.4x $70M 15.4x ($ in thousands esports Revenue Growth 1 2 3 Prize Pools Awarded in 1H 2020 $10.2M $5.2M $6.9M 14 15.5% CAGR x
  • 16. CONFIDENTIAL D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0 $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 12/1/2019 1/1/2020 2/1/2020 3/1/2020 4/1/2020 5/1/2020 6/1/2020 7/1/2020 8/1/2020 9/1/2020 10/1/2020 11/1/2020 $400 $400 $320 $240 $210 $185 $175 $170 $165 $160 11.4x 13.8x 13.3x 6.9x 19.1x 20.6x 10.9x 21.3x 7.5x 16.0x 0.0x 5.0x 10.0x 15.0x 20.0x $0 $100 $200 $300 $400 $500 Team SoloMid Cloud 9 Team Liquid FaZe Clan Immortals Gaming Club Gen.G Fnatic Envy Gaming G2 Sports 100 Thieves …ButtheCurrentesportsModelMayBeaBubbleWaitingtoBurst DIGITAL GAMING OVERVIEW Teams Are Being Valued Like Tech Companies… ($ millions) Median EV/Revenue Note(s): (1) TTM period is 12/31/2019 – 11/30/2020 Source(s): Twitch Tracker, Forbes, CapitalIQ, and Company Websites ...But Fail to Generate Revenue and Appear Overvalued… 15 Value EV/Revenue 13.6x x …While the Publicly Traded esports Companies Have Seen a Dramatic Decline Over the Last Year(1) $88.0 $69.0 $52.0 $35.0 $2.0 MLB NHL NFL NBA Esports esports -96.0% -56.3% -16.5% 52.7%
  • 17. CONFIDENTIAL D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0 While the 9th Generation Looks More Crowded Than EverRecord Setting 9th Generation Console Launch November 10, 2020 November 12, 2020Release Date Manufacturer PS5Xbox Series XConsole Projected Sales(1) 42 million 64 million Note: (1) Projected unit sales through 2024 Source(s): Company Websites, Forbes, Omdia Analysis, Bezinga TheConsoleMarketisExplodingwiththeLaunchoftheNext-GenXboxandPlayStation… DIGITAL GAMING OVERVIEW 16 x 800k – 925k (24 hours) 2.1 – 2.5 (first two days)Launch Day Unit Sales May 2021 March 2021Readily Available Date Secondary Market $835 $1,024 MSRP $499 $499
  • 18. CONFIDENTIAL D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0 10.0+ 10.0+ 13.3 16.0+ 10.7 12.2 18.1 18.6 20.0 22.4 26.7 Game Sales Are At Record Highs …WhileSoftwareStillPullsUsersBetweenPlatforms DIGITAL GAMING OVERVIEW PC Gaming Market Value Forecasts (Units sold in millions) Microsoft has stopped disclosing sales numbers for 1st party software Mario Kart 8 Super Smash Bros. Ultimate Mario Odyssey Breath of the Wild Pokémon Let’s Go Splatoon 2 Spider-man Horizon: Zero Dawn Uncharted 4 God of War Halo 5 Gears of War 5 Forza = Sony = Nintendo = Microsoft ($ billions) $26.6 $28.0 $29.6 $31.4 $33.6 2016 2017 2018 2019 2020 17 Gaming Market Value Forecasts 4.8% CAGR Source(s): Newzoo, Company Websites Animal Crossing: New Horizons x
  • 19. CONFIDENTIAL D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0 6.63 6.97 8.35 9.2 16.0 Rubius Myth shroud Tfue Ninja 60 77 86 95 101 120 107 105 100 126 210 209 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2017 2018 2019 2020 789 952 1,044 1,120 1,162 1,287 1,267 1,265 1,206 1,468 2,370 2,165 27 36 39 43 46 56 49 48 45 58 96 95 0 20 40 60 80 100 120 0 500 1,000 1,500 2,000 2,500 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2017 2018 2019 2020 1,740 2,037 2,279 2,444 2,563 2,776 2,767 2,794 2,661 3,210 5,175 4,780 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2017 2018 2019 2020 StreamingViewershipContinuestoGrow DIGITAL GAMING OVERVIEW Twitch Exceeds 1.2B Average Concurrent Viewers in 2018 (Hours in millions) Top Streamers Are Gaining Millions of Followers (Viewers and Channels in thousands) (Followers in millions) 18 Source(s): Twitch Tracker as of 9/30/20 Twitch Average Viewers and Channels Stays Flat in 3Q3Q Continues Strong Trend in Hours Watched Viewers Channels Twitch Exceeds 1.2B Average Concurrent Viewers in 2018 (Hours in millions) Hours of Content Produced Stays Elevated x
  • 20. CONFIDENTIAL D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0 $584.1 $163.3 $543.7 $158.0 Sponsorship Media Rights 2020 2019 Sponsorship and Media Revenues Are Adjusted Down MainstreamBrandsContinuetoInvestinVideoGames DIGITAL GAMING OVERVIEW Select Endemic Sponsors Select Non-Endemic Sponsors ($ millions) 19 Source(s): The Esports Observer, Newzoo 7.4% YoY Growth 3.3% YoY Growth x
  • 21. CONFIDENTIAL D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0 0.00% 50.00% 100.00% 150.00% 200.00% 250.00% 300.00% 350.00% 400.00% 450.00% 500.00% Sep-01-2015 Sep-01-2016 Sep-01-2017 Sep-01-2018 Sep-01-2019 Sep-01-2020 GamingFurtherSeparatesItselfFromtheBroaderMarket DIGITAL GAMING OVERVIEW 20 Source(s):CapitalIQ as of 12/7/20; Note: (1) Activision Blizzard, Electronic Arts, Take Two Interactive, Ubisoft, Zynga, CD Projekt, Embracer Group, Stillfront Group, Paradox Interactive, Glu Mobile, Kahoot!, Ten Square Games, Frontier Developments, Team17 Group, Codemasters Group, Rovio Entertainment, Sumo Group, and G5 Entertainment x Index Value Growth 424.8% 170.1% 92.9% Gaming Index(1) S&P 500NASDAQ Composite
  • 22. CONFIDENTIAL D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0 29.9x 6.7x 29.8x 20.2x 21.2x 19.1x 65.1x 23.0x 20.4x 11.1x 10.0x 5.8x 27.2x 1.0x 2.0x 3.0x 4.0x 5.0x 6.0x 7.0x 8.0x 9.0x 10.0x 11.0x 12.0x 13.0x 14.0x 5.4x 0.9x 7.6x 5.8x 5.2x 2.7x 22.6x 10.6x 3.4x 3.7x 1.6x 0.9x 15.2x 1.9x 1.0x 2.0x 3.0x 4.0x 5.0x 6.0x 7.0x 8.0x 9.0x 10.0x 11.0x 12.0x 13.0x 14.0x SelectPublicCompanies DIGITAL GAMING OVERVIEW Median EV/Revenue Median: 4.5x Game Development – Mobile Games Game Development – Developer/Publisher Technology - Hardware Technology – Streaming/Content Median EV/EBITDA Median: 20.4x Game Development – Mobile Games Game Development – Developer/Publisher Technology - Hardware Technology – Streaming/Content 21 NM Source(s):CapitalIQ as of 12/7/20; Note: “NM” only applies to multiples less than zero. x
  • 23. CONFIDENTIAL D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0 7.3x 6.3x 6.0x* 5.4x 5.2x 5.2x 3.6x 3.4x 2.8x 0.8x Candywriter Big Blue Bubble ZeniMax Media Saber Interactive Funcom Pipeworks Eko Software Storm8 UMG Media roccat Source(s): CapitalIQ as of 12/7/20, Company Websites ; “*” Deutsche Bank estimate SelectPrecedentTransactions DIGITAL GAMING OVERVIEW EV/Revenue Median: 5.2x Target: Acquirer: 22 x
  • 24. CONFIDENTIAL D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0 II. The Forbes M+A Overview 23
  • 25. CONFIDENTIAL D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0 TheForbesM+AGroup THE FORBES M+A OVERVIEW Senior-level attention and transaction leadership Focused, dedicated transaction teams Vertical and industry focused expertise Unbiased, trusted advisory services Quality of service and execution over quantity Track record of successful outcomes  Founded in 2004 with offices located in Denver, Colorado & Salt Lake City, Utah  Transaction sizes ranging from $10M — $200M  Nationwide clientele with global market reach  Nationwide clientele with global market reach  Swarm transactions with senior advisors, with more than $85B and 250 years of combined experience Rocky Mountain West boutique investment banking advisory firm focused on closely held companies with strong growth stories and market dominant products or services. Focused on Excellence in Execution… Middle Market Leader 24
  • 26. CONFIDENTIAL D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0 TheForbesM+ATransactionTeam THE FORBES M+A OVERVIEW Head of Digital Gaming Group 303.872.6445 JJ.Lane@ForbesMA.com Industry leading veterans that possess a depth and breadth of experience across both M&A and private industry as founders, operators, advisors, and executives. JJ Lane Bob Forbes President Bill Nack Partner / Managing Director Dan Pellegrino Partner / Managing Director Jon Wiley Partner / Managing Director Garit Lawson Managing Director Steve Quisenberry Managing Director James Morgan Managing Director Doug Freyschlag Director Blake Shear Director JJ Lane Vice President Cassie Dobos Associate Bryce Dietz Analyst Jarred Olson Analyst Liam Narozanick Analyst John Kiernan Analyst 25
  • 27. CONFIDENTIAL D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0 26 SoftwareasaService(“SaaS”)IndustryReport TheForbesM+AGroupAdvantage THE FORBES M+A OVERVIEW EVERY DETAIL COUNTS.™ In managing the ownership transition of a closely-held company, the old adage that “the devil is in the details” is widely underestimated. At THE FORBES M+A GROUP, we are hyper vigilant about details – not only based on the merits of the phrase above but because, as our tagline reveals, we recognize the “deals” are also in those details. The best deals. The ones that offer the most strategic and financial value to all of the key stakeholders involved in the transaction. We fully grasp and internalize clients’ goals. We understand clients’ businesses exhaustively and tell their stories meticulously. We design a comprehensive blueprint of each client’s best future. We find ideal targets, not just the easy ones, and compel them to compete. We advocate fiercely for our clients, creating extraordinary outcomes.
  • 28. CONFIDENTIAL D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0 27 SoftwareasaService(“SaaS”)IndustryReport WhatClientsandAdvisorsSay THE FORBES M+A OVERVIEW “Their industry knowledge, relationships with buyers, extensive transaction experience, and adaptive and creative deal making were essential in achieving an outcome that met our goals.” ~ Tres Coors, CEO of Novelty Lights “Their guidance was invaluable as we reviewed offers and negotiated a deal structure that was exactly what we needed.” ~ Doug Larson, President at Eldorado Artesian Springs “Forbes is like a bulldog with a rag in its mouth. If there is a deal that serves the interests of their client, those guys don’t let go until it crosses the finish line.” ~ Bob Roth, Partner at Kutak Rock “They exceeded every expectation by taking the time to understand our objectives, delivering the best possible partner and terms.” ~ Christine Crane, CEO of BoldLeads “We wanted to entrust the business to an advisor with similar core values and high- quality standards.” ~ Tom Tolkacz, CEO of Swingle “PASCO selected The Forbes M+A Group amongst competing advisory firms because of their reputation for identifying excellent strategic partners.” ~ Ryan Zeiger, CEO of PASCO “From identifying the perfect buyer, to maximizing our value, and ultimately continuing our legacy, the Forbes M+A team was there from start to finish.” ~ Stephanie White, CEO of Top Gun “The Forbes M+A Group was recommended to us as a company that would truly partner with us to achieve our goals.” ~ Mike Franklin, President of TouchSource
  • 29. CONFIDENTIAL D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0 SoftwareasaService(“SaaS”)IndustryReport TrustedbytheWorld’sTopFinancialInstitutions THE FORBES M+A OVERVIEW Forbes has developed strategic partnerships with some of the largest financial institutions in the world with its strong reputation for servicing the middle market. 28
  • 30. CONFIDENTIAL D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0 Click to edit Master title style CONFIDENTIAL D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0 29 2020
  • 31. CONFIDENTIAL D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0 III. Appendix 30
  • 32. CONFIDENTIAL D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0 Date Target Buyer / Investor(s) Target Description Target Category Transaction Type Implied EV ($ in millions) EV / Revenue EV / EBITDA Nov-20 Axion Ventures Inc. Monaker Group Axion Ventures, an investment issuer, primarily focuses on investments in the online video gaming sector and other information technology sectors. Game Development Merger/Acquisition $31.9 na na Nov-20 Snapshot Games Inc. Saber Interactive Snapshot Games develops and publishes video games. Game Development Merger/Acquisition na na na Oct-20 IronOak Games Inc. Curve Digital Publishing IronOak Games develops video games for PC and Console. Game Development Merger/Acquisition na na na Oct-20 Metro VR Studios Gaensel Energy Group Metro VR Studios is an indie VR development studio. Game Development Merger/Acquisition na na na Oct-20 Enhance Experience, Inc. Mobcast Holdings Enhance Experience, Inc. develops and publishes games using VR, AR, MR, and XR technologies. Game Development Merger/Acquisition na na na Sep-20 Pipeworks Sumo Group Pipeworks Inc develops IP games. Game Development Merger/Acquisition $100.1 5.2x 23.8x Sep-20 NEON Media The 4D Factory NEON Media operates as a production company that develops and design games. Game Development Merger/Acquisition na na na Sep-20 ZeniMax Media Microsoft Corporation ZeniMax Media operates as a video game publisher. Game Development Merger/Acquisition $7,500.0 6.0x* na Sep-20 WorldGaming Network Playfully WorldGaming Network owns and operates an electronic sports and competitive online video gaming platform. Community Merger/Acquisition na na na Sep-20 Reflector Entertainment BANDAI NAMCO Entertainment Europe Reflector Entertainment designs and develops videogames, movies, comics, and other media for cross-platform storytelling. Game Development Merger/Acquisition $15.0 na na Aug-20 Big Blue Bubble Enad Global 7 Big Blue Bubble develops and publishes video games. Mobile Games Merger/Acquisition $75.9 6.3x 21.7x Aug-20 One Up Group Engine Media Holdings One Up Group operates as a mobile game companywhich allows gamers to organize and play one-on-one matches with other gamers. Mobile Games Merger/Acquisition $14.6 na na Aug-20 Playdots Take-Two Interactive Software Playdots develops mobile games. Mobile Games Merger/Acquisition $192.0 na na Aug-20 Cold Iron Studios Daybreak Game Company Cold Iron Studios develops mobile, console, and personal computer games. Mobile Games Merger/Acquisition na na na Jul-20 Wordie Three Gates Wordie develops an mobile game application. Mobile Games Merger/Acquisition $0.2 na na SoftwareasaService(“SaaS”)IndustryReport SelectDigitalGamingM&ATransactions(1/3) VALUATION SUPPORT 31 Source(s):CapitalIQ as of 12/7/20; “*” Deutsche Bank estimate x
  • 33. CONFIDENTIAL D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0 Date Target Buyer / Investor(s) Target Description Target Category Transaction Type Implied EV ($ in millions) EV / Revenue EV / EBITDA Jul-20 Wordie Three Gates Wordie develops an mobile game application. Mobile Games Merger/Acquisition $0.2 na na Jun-20 Ready At Dawn Studios Facebook Technologies Ready At Dawn Studios develops video games. Game Development Merger/Acquisition na na na Jun-20 Peak Games Zynga Peak Games develops multiplayer mobile games in Turkey and the Middle East and North Africa (MENA) region. Mobile Games Merger/Acquisition $1,934.0 na na Jun-20 Gaming licenses of Majesco Entertainment Company Ziggurat Interactive Gaming licenses of Majesco Entertainment Company including BloodRayne. Game Development Merger/Acquisition na na na Jun-20 LetsGoRacing Torque Esports LetsGoRacing comprises a YouTube channel that broadcasts motorsport and esports racing content. Community Merger/Acquisition $1.6 na na Apr-20 PierPlay Scopely PierPlay engaged in development of mobile video games. Game Development Merger/Acquisition na na na Apr-20 3DO games catalog of Prism Entertainment Ziggurat Interactive 3DO games catalog of Prism Entertainment comprises game licenses. Game Development Merger/Acquisition na na na Apr-20 Candywriter Stillfront Group Candywriter develops and publishes mobile games. Game Development Merger/Acquisition $204.0 7.3x 12.7x Feb-20 DriverDB Torque Esports DriverDB AB provides data to racing drivers and general motorsport industry. Community Merger/Acquisition $0.8 na na Apr-20 Hypixel Studios Riot Games Hypixel Studios designs and develops computer games. Game Development Merger/Acquisition na na na Apr-20 Moneyweek Torque Esports Moneyweek operates an online motor sports community for motorsport enthusiasts, industry influencers, and Formula 1 teams, as well as former drivers. Community Merger/Acquisition $0.5 na na Mar-20 MTD Gaming Ainsworth Game Technology MTD Gaming develops and supplies computer games. Game Development Merger/Acquisition $26.0 na na Feb-20 Saber Interactive Embracer Group Saber Interactive develops online interactive games in the United States. Game Development Merger/Acquisition $596.2 5.4x 9.2x Feb-20 Kolibri Games Ubisoft Entertainment Kolibri Games operates as a mobile games company. Mobile Games Merger/Acquisition na na na Jan-20 Phoenix Labs Garena Online Private Phoenix Labs develops games for personal computers. Game Development Merger/Acquisition na na na SoftwareasaService(“SaaS”)IndustryReport SelectDigitalGamingM&ATransactions(2/3) VALUATION SUPPORT 32 Source(s):CapitalIQ as of 12/7/20 x
  • 34. CONFIDENTIAL D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0 SoftwareasaService(“SaaS”)IndustryReport SelectDigitalGamingM&ATransactions(3/3) VALUATION SUPPORT 33 Source(s):CapitalIQ as of 12/7/20 x Date Target Buyer / Investor(s) Target Description Target Category Transaction Type Implied EV ($ in millions) EV / Revenue EV / EBITDA Jan-20 Phoenix Labs Garena Online Private Phoenix Labs develops games for personal computers. Game Development Merger/Acquisition na na na Jan-20 Streamlabs Logitech International Streamlabs develops Streamlabs application that provides in-stream popup alerts. Community Merger/Acquisition $130.3 na na Jan-20 Funcom Tencent Cloud Europe Funcom develops and publishes massively multiplayer online games for PCs and consoles worldwide. Game Development Merger/Acquisition $1,223.5 5.2x 11.3x Jan-20 FoxNext Games Scopely FoxNext develops virtual and augmented reality, mobile, console/personal computer games, and location-based entertainment for studio's film and television operations. Game Development Merger/Acquisition na na na Jan-20 Storm8 Stillfront Group Storm8 develops social mobile games for the iPhone, iPod Touch, and Android devices. Mobile Games Merger/Acquisition $403.9 3.4x 6.6x Dec-19 Typhoon Studios Google Typhoon Studios is an independent game developer. Game Development Merger/Acquisition na na na Median $88.0 5.4x 12.0x Mean $691.7 5.5x 14.2x
  • 35. CONFIDENTIAL D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0 Stock % of Equity Price 52 Week Market Enterprise EV / Revenue EV / EBITDA Company 12/7/2020 High Cap Value LTM LTM Game Development - Mobile Games Zynga Inc. (NasdaqGS:ZNGA) $8.79 82% $9,474 $9,451 5.4x 29.9x Glu Mobile Inc. (NasdaqGS:GLUU) $9.65 89% $1,658 $1,380 2.7x 94.3x Rovio Entertainment Oyj (HLSE:ROVIO) $5.95 81% $434 $294 0.9x 6.7x Mean 84.0% $3,855 $3,708 3.0x 43.6x Median 82.2% $1,658 $1,380 2.7x 29.9x Stock % of Equity Price 52 Week Market Enterprise EV / Revenue EV / EBITDA Company 12/7/2020 High Cap Value LTM LTM Game Development - Publisher/Developer Microsoft Corporation (NasdaqGS:MSFT) $214.37 92% $1,620,668 $1,565,935 10.6x 23.0x Tencent Holdings Limited (SEHK:700) $76.45 12% $716,246 $731,878 10.9x 30.3x Sony Corporation (TSE:6758) $94.47 1% $114,812 $127,383 1.6x 11.1x Activision Blizzard, Inc. (NasdaqGS:ATVI) $81.40 93% $62,509 $58,511 7.6x 20.2x Nintendo Co., Ltd. (TSE:7974) $551.21 1% $66,201 $52,833 3.4x 10.0x Electronic Arts Inc. (NasdaqGS:EA) $129.19 88% $37,301 $32,509 5.8x 21.2x Unity Software Inc. (NYSE:U) $151.90 97% $40,871 $39,238 NM NM Take-Two Interactive Software, Inc. (Nasdaq:TTWO) $181.38 98% $19,784 $17,577 5.2x 29.8x BANDAI NAMCO Holdings Inc. (TSE:7832) $90.71 1% $19,830 $18,442 2.7x 19.1x Ubisoft Entertainment SA (ENXTPA:UBI) $94.99 112% $11,620 $12,157 6.3x NM Square Enix Holdings Co., Ltd. (TSE:9684) $61.47 1% $7,199 $5,911 2.0x 11.1x Capcom Co., Ltd. (TSE:9697) $57.05 1% $6,100 $5,493 6.7x 19.6x Mean 50% $226,928 $222,322 5.7x 19.5x Median 50% $39,086 $35,874 5.8x 19.9x SoftwareasaService(“SaaS”)IndustryReport PubliclyTradedCompanies(1/3) VALUATION SUPPORT $ millions, except per share data 34 Source(s):CapitalIQ as of 12/7/20; Note: “NM” only applies to multiples less than zero. x
  • 36. CONFIDENTIAL D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0 Stock % of Equity Price 52 Week Market Enterprise EV / Revenue EV / EBITDA Company 12/7/2020 High Cap Value LTM LTM Technology - Hardware Microsoft Corporation (NasdaqGS:MSFT) $214.37 92% $1,620,668 $1,565,935 10.6x 23.0x Alphabet Inc. (NasdaqGS:GOOG.L) $1,815.55 98% $1,235,035 $1,129,534 6.6x 23.5x NVIDIA Corporation (NasdaqGS:NVDA) $544.05 92% $335,702 $333,244 22.6x 65.1x Sony Corporation (TSE:6758) $94.47 1% $114,812 $127,383 1.6x 11.1x Advanced Micro Devices, Inc. (Nasdaq:AMD) $94.95 99% $113,231 $112,038 13.0x 78.2x Nintendo Co., Ltd. (TSE:7974) $551.21 1% $66,201 $52,833 3.4x 10.0x Seagate Technology plc (NasdaqGS:STX) $63.78 99% $16,462 $19,048 1.9x 11.0x Logitech International S.A. (SWX:LOGN) $87.20 97% $14,556 $13,647 3.7x 20.4x Corsair Gaming, Inc. (NasdaqGS:CRSR) $35.62 69% $3,280 $3,561 2.4x 22.7x Plantronics, Inc. (NYSE:PLT) $27.70 79% $1,064 $2,486 1.6x 19.8x Razer Inc. (SEHK:1337) $0.31 11% $2,837 $2,260 2.5x NM Turtle Beach Corporation (NasdaqGM:HEAR) $19.97 87% $303 $281 0.9x 5.8x Mean 69% $293,679 $280,187 5.9x 26.4x Median 90% $41,331 $35,940 2.9x 20.4x Stock % of Equity Price 52 Week Market Enterprise EV / Revenue EV / EBITDA Company 12/7/2020 High Cap Value LTM LTM Professional Scene Enthusiast Gaming Holdings Inc. (TSX:EGLX) $2.41 74% $249 $272 9.1x NM Engine Media Holdings, Inc. (TSXV:GAME) $0.55 2% $55 $64 15.6x NM Allied Esports Entertainment Inc. (NasdaqCM:AESE) $1.08 18% $37 $39 1.7x NM Gfinity plc (AIM:GFIN) $0.05 109% $39 $37 6.7x NM Super League Gaming, Inc. (NasdaqCM:SLGG) $2.19 34% $33 $24 15.6x NM Guild Esports Plc (LSE:GILD) $0.08 85% $41 $40 NA NA Mean 54% $76 $79 9.8x NM Median 54% $40 $39 9.1x NM SoftwareasaService(“SaaS”)IndustryReport PubliclyTradedCompanies(2/3) VALUATION SUPPORT $ millions, except per share data 35 Source(s):CapitalIQ as of 12/7/20; Note: “NM” only applies to multiples less than zero. x
  • 37. CONFIDENTIAL D i g i t a l G a m i n g U p d a t e – F a l l / W i n t e r 2 0 2 0 Stock % of Equity Price 52 Week Market Enterprise EV / Revenue EV / EBITDA Company 12/7/2020 High Cap Value LTM LTM Technology - Streaming & Content Sea Limited (NYSE:SE) $200.00 98% $98,190 $96,822 27.0x NM Bilibili Inc. (NasdaqGS:BILI) $68.56 100% $23,553 $22,801 15.2x NM HUYA Inc. (NYSE:HUYA) $19.00 62% $4,471 $2,894 1.9x 27.2x Mean 87% $42,071 $40,839 14.7x 27.2x Median 98% $23,553 $22,801 15.2x 27.2x Aggregate Metrics Mean 63% $177,376 $171,229 6.9x 25.8x Median 83% $15,509 $15,612 5.3x 20.4x SoftwareasaService(“SaaS”)IndustryReport PubliclyTradedCompanies(3/3) VALUATION SUPPORT 36 $ millions, except per share data Source(s):CapitalIQ as of 12/7/20; Note: “NM” only applies to multiples less than zero. x