This document provides an overview of Corum, a sell-side M&A firm focused on technology products and services businesses. Some key points:
- Corum was established in 1985 and has completed over 300 M&A transactions totaling over $7 billion.
- It has a professional staff drawn from senior positions at technology companies and the most extensive industry database.
- The document discusses gaming M&A trends, with increasing deal volumes and values in recent years. It also notes the growing involvement of Asian firms in gaming M&A.
2. 2
Corum
–
Sell
Side
M&A
Firm
§ Established
in
1985.
§ Focused
on
transac@ons
in
technology
products
and
services
businesses.
§ Professional
staff
drawn
from
senior
posi@ons
at
technology
companies.
§ 300+
M&A
transac@ons.
Over
$7
billion
in
transac@on
value.
§ 25+
year
rela@onships
with
global
soNware
companies.
§ Most
extensive
database
in
the
industry
(approx.
$25
million
invested).
§ Integrated
global
opera@ons;
transac@ons
in
21
countries.
§ Educa@onal
Leader,
creator
of
the
world’s
most
aWended
tech
M&A
conference,
sponsor
of
the
World
Financial
Symposiums,
frequent
guest
on
CNBC,
MSNBC
and
other
industry
events.
10. 10
Oculus:
Growth
Through
M&A
Acquirer:
Facebook
Target:
Oculus
RiQ
Deal
Value:
$2
Billion
Date:
April
2014
Sold
to
Following
the
AcquisiVon
Target: Carbon Design Group
Acquirer: Oculus VR
Transaction Value: Undisclosed
Target: Jenkins Software (RakNet)
Acquirer: Oculus VR
Transaction Value: Undisclosed
Target: Nimble
VR
Acquirer: Oculus VR
Transaction Value: Undisclosed
Target: 13th
Lab
AB
Acquirer: Oculus VR
Transaction Value: Undisclosed
Sold
to
Sold
to
Sold
to
Sold
to
11. 11
0
20
40
60
80
100
120
140
160
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
2009
H1
2009
H2
2010
H1
2010
H2
2011
H1
2011
H2
2012
H1
2012
H2
2013
H1
2013
H2
2014
H1
2014
H2
Deal
Counts
Dollar
Value
in
Billions
TransacVon
Value
($B)
Billion
Dollar
+
Total
Deals
Transac@ons
in
the
Gaming
Ecosystem
Sources
include
company
filings
and
releases,
industry
databases
and
Corum
Group.
• Both
majority
and
minority
deals
included.
• TransacVons
relaVng
to
the
gaming
ecosystem
were
included,
not
limited
to
gaming
studios.
• Only
announced
or
available
deal
values
included.
12. 12
Source:
Corum
Transac@ons
in
the
Gaming
Ecosystem
Deal
Volume
Highest
Since
2009
2
Record
Seing
Years
Excluded
Billion
$
TransacVons:
• H1
2014
:
$3.35B
• H2
2014:
$7.85B
Average
Deal
Size:
5
Year
Growth:
170%
$43m
to
$115m
YoY:
21%
$95m
to
$115m
$0
$20
$40
$60
$80
$100
$120
$140
2009
H1
2009
H2
2010
H1
2010
H2
2011
H1
2011
H2
2012
H1
2012
H2
2013
H1
2013
H2
2014
H1
2014
H2
in
Millions
Average
Deal
Size
Trending
0
20
40
60
80
100
120
140
160
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
Deal
Counts
$
Value
in
Billions
Reported
Gaming
Transac@ons
TransacVon
Value
($B)
Billion
Dollar
+
Total
Deals
15. 15
Early
lead
by
Asian
Firms,
Recent
Pickup
of
US
Firms
Source:
Corum
Top
9
of
10
Deals
(2013)
Top
4
of
10
Deals
(2014)
Top
7
of
10
Deals
(2012)
16. 16
Chinese
Take-‐Privates
Price
Arbitrage.
Founder
does
not
believe
shares
are
adequately
valued
by
Wall
Street
as
Chinese
gaming
shares
should
be.
$1BN,
January
2015
President
Ji
Xuefeng
said
at
the
end
of
each
quarter,
huge
operaVng
pressure
leads
to
short-‐sighted
strategy.
Problem
in
Product
Planning.
$3BN,
March
2014
$1.9BN,
January
2014
17. 17
Top Asian Gaming Acquirers
8
4
4
3
3
3
3
86%
GROWTH
60%
GROWTH
50%
GROWTH
TransacVons
over
last
2
years
Revenue
Growth
from
2013
to
2014e
18. 18
BaWle
of
Chinese
Giants
:
Tencent
vs
Alibaba
Expanding
beyond
eCommerce
Spending
@me
partnering
with
studios
to
become
a
publisher
Data
Source:
CapitalIQ
$300M
$500M
$63M
$120M
$280M
19. 19
Ac@vity
Since
2013
for
Tencent
&
Alibaba
88
$21B
AcquisiVons
&
Investments
Total
Value
Data
Compiled
by
The
Corum
Group
20. 20
73
6.6
March
April
June
August
September
December
AMOUNT
RAISED,
$M
IPO
Dominated
by
Asia
22. 22
Drama@c
Changes
in
AdTech
One
of
largest,
most
important
mobile
marke@ng
plaporms
Differen@a@on
with
iTunes
Connect
Analy@cs
&
aWribu@on
tools
Source:
Luma
Partners
24. 24
21%
11%
9%
8%
7%
5%
Rest
of
Market**
39%
Social
Casino
Game
Market
Share
-‐
3Q14
MOBILE
ONLY
SOCIAL
ONLY
Social
and
Real
Money
Casino
Companies
$2.7B
SO C IAL
C ASINO
G A M ING
M A R K E T
MOBILE
SHARE
54%
16%
0.5%
M O B I L E
G R O W T H
Q / Q
F A C E B O O K
G R O W T H
Q / Q
Source:
App
Annie,
Eilers
Research
25. 25
Consolida@on
of
the
Middle
Market
Acquirer:
Churchill
Downs
Target
:
Big
Fish
Deal
Value:
$885M
Date:
Nov
2014
Acquirer:
Imperus
Technologies
Corp.
Target
:
Diwip
Ltd.
Deal
Value:
$100M
Deal
Mul@ple:
1.8x
Revenue
Date:
Oct
2014
Acquirer:
Caesars
InteracVve
(PlayVka)
Target
:
Pacific
InteracVve
Deal
Value:
$90M
Date:
Feb
2014
Acquirer:
Bally
Technologies
Inc.
Target
:
Dragonplay
Ltd.
Deal
Value:
$90M
Deal
Mul@ple:
5.1x
EBITDA
Date:
June
2014
Sold
to
Sold
to
Sold
to
Sold
to
Acquirer:
GSN
Games
Target
:
Bash
Gaming
Deal
Value:
$165M
Date:
Feb
2014
Sold
to
Sports
&
Gaming
26. 26
Billion
Dollar
Consolida@on
Spree
Acquirer:
Aristocrat
Technologies
Target:
Video
Gaming
Technologies
Deal
Value:
$1.3B
Deal
Mul@ple:
5.5x
Revenue
Date:
July
2014
Sold
to
Acquirer:
GTECH
Target:
IGT
Deal
Value:
$6.4B
(cash
plus
debt)
Deal
Mul@ple:
3.0x
Revenue
Date:
July
2014
Acquirer:
ScienVfic
Games
Target:
Bally
Technologies
Deal
Value:
$3.3B
Deal
Mul@ple:
3.7x
Revenue
Date:
July
2014
Sold
to
Acquirer:
Global
Cash
Access
Target
:
MulVmedia
Games
Deal
Value:
$1.2B
Deal
Mul@ple:
5.5x
Revenue
Date:
Sept
2014
Sold
to
Sold
to
27. 27
Games
as
a
Service
Con$nuously
delivering
value
to
Gamers
• Players
pay
as
they
go
&
what
they
use
-‐
“F2P”
Service
Concept
• StarVng
with
trailer
thru
game
play,
online
presence,
community,
etc.
All
Encompassing
• Strong
analyVcal
soluVons
and
strategies
• Keep
the
users
coming
back
Mone@za@on
is
Key
• Focused
soluVon
providers
helping
every
step
of
the
way
from
product
development
to
a/b
tesVng
to
analyVc
compilaVon
Specializa@on
Economy
29. 29
eSports
becoming
mainstream
entertainment
6
OF
TOP
10
CHANNELS
ARE
GAMES
(music
is
other)
ONLY
37%
of
people
who
watch
GAMING
VIDEOS
ON
YOUTUBE
consider
themselves
“GAMERS”
Source:
IHS
Inc.
May
2014
3.7B
2014
6.7B
2018
Global
eSports
Consump@on
Forecast
[Hours]
30. 30
Predic@ons
Mobile
Costs
leading
to
diversified
user
acquisiVon
channels
Licensed
Content
More
DLC
with
internet
connected
Consoles
&
introducVon
of
new
types
and
“Season
Passes”
Crea@on
for
wider
gaming
audience