GP.Bullhund-2019年第四季度网络媒体报告（英文）37页_3mb

Summary of Q4 2019 GP Bullhound Digital Media Market Report

Core Content

This report provides a quarterly analysis of the digital media market, highlighting trends in public and private market valuations, notable M&A deals, and insights from CEOs. It is published by GP Bullhound, a leading technology advisory and investment firm, with the digital media practice led by Partner Alec Dafferner based in San Francisco.

Main Points

1. Key Sector Takeaways

• Video: The streaming wars have reached their peak, with increased competition and aggressive strategies leading to higher demand for content, talent, and executives.
• Music: The industry is moving towards a full-stack approach, with a focus on content and data-driven models. Consolidation is intensifying, and music catalogues are becoming prime targets.
• Digital Publishing: A trend of consolidation is emerging, with major digital media companies acquiring private publishers for better data and audience targeting.
• Games: The development platforms are evolving, with a shift towards more comprehensive tools and engines, such as Epic's Unreal Engine and Unity's Unity 3D, leading to a "war of the development platforms."

2. CEO Commentary

• iMusician (CEO Shigs Amemiya): The music industry is transitioning to new business models, and the full-stack approach is becoming the norm. The focus is on self-serve platforms and leveraging data for better audience engagement.
• Apartment Therapy (CEO Maxwell Ryan): The company has evolved from a niche platform to a comprehensive home and lifestyle destination, emphasizing authenticity and a conscious approach to content creation and consumption.

3. Recent Transaction Trends

• Notable M&A Deals:
  • Rakuten OverDrive acquired by KKR (Dec 24, 2019)
  • Care.com acquired by IAC (Dec 20, 2019)
  • Quixel acquired by Epic Games (Nov 12, 2019)
  • Spotify invested in by GP Bullhound (investor details not specified)
• Private Placement Deals:
  • Universal Music Group raised $3,360m from Tencent
  • Refinery29 raised $400m from 优享
  • Kuaishou Technology raised $3,000m from Tencent
  • Qutoutiao raised $100m from CMC
  • Kahoot! raised $25m from Nordic and international investors
• Deal Activity:
  • Most transactions in Q4 2019 were in the Asian gaming sector.
  • Snapchat showed the most impressive recovery with improved margins.

4. Public Market Analyses

• GP Bullhound Digital Media Indices:
  • The indices reflect the performance and valuation of companies in different categories such as diversified online content and social media, music, video, and photos, and Western and Asian gaming.
• Market Valuation:
  • Diversified online content and social media: Companies like Facebook, IAC, and Zillow showed varying levels of performance and valuation multiples.
  • Music, video, and photos: Netflix and Spotify were highlighted with strong market caps and revenue growth.
  • Western gaming: Companies like Match Group and TripAdvisor were noted for their performance and margins.
  • Asian gaming: Tencent, CMGE, and 心动网络 were highlighted with significant valuation and growth figures.
• Rule of 60:
  • A benchmark for evaluating the health of digital media companies based on user growth, revenue growth, and profitability.
  • Snapchat showed the best performance in this metric.

Key Information

M&A Deals

Private Placement Deals

Public Market Performance

• CMGE (SEHK:302): +7.6% since IPO, LTM revenue $357m, EV $945m, EV/Rev 2.7x.
• 心动网络 (SEHK:2400): +53.2% since IPO, LTM revenue $274m, EV $852m, EV/Rev 3.1x.
• Tencent (CN): EV/Rev 12.0x, CY revenue growth 58.2%, EBITDA margin 44.3%.
• Snapchat (US): showed the most impressive recovery with improved margins.

Conclusion

The digital media sector in Q4 2019 experienced significant changes, with a focus on consolidation, technological advancements, and the evolution of business models. Companies are increasingly adopting full-stack strategies and leveraging data for better audience targeting. The market shows a mix of growth and challenges, with notable performance from Asian gaming companies and a recovery in Snapchat's margins. The Rule of 60 remains a key benchmark for evaluating the health of digital media companies.