The document is a confidential report providing an overview of the digital gaming industry for Fall/Winter 2020. It discusses the continued boom in the industry during 2020, with record viewership and mega deals. It also summarizes challenges securing next-gen consoles due to high demand and limited supply. Additionally, the report analyzes trends such as the growth of mobile gaming and the dominance of the US and China in the gaming market.

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