2021年第四季度网络媒体报告（英）-28页_1mb

Q4 2021 Digital Media Sector Summary

Core Content Overview

Q4 2021 marked continued activity in the digital media sector, with a focus on digital publishing, NFTs, music rights, and the metaverse. Despite earlier challenges due to the global pandemic and reduced advertising budgets, the sector saw renewed investment and M&A activity as the economy rebounded.

Main Trends and Insights

Digital Publishing Deal Making

• Revival of M&A activity: Digital publishing companies saw increased deal activity, with notable acquisitions such as Vox Media acquiring Group Nine.
• SPAC IPOs: SPACs became a significant route to liquidity for long-time investors. BuzzFeed and Codere went public through SPAC mergers.
• Redemption of digital publishing companies: The sector continued to see companies being acquired, indicating a return to growth and investor confidence.

NFTs and Web3 Adoption

• Mainstream adoption: Major brands began adopting NFTs to engage with consumers and drive user interaction.
• Strategic use cases: Brands use NFTs for sweepstakes, limited editions, and digital tokens linked to purchases.
• Web3 transition: NFTs are seen as a stepping stone towards a broader Web3 ecosystem, allowing brands to develop blockchain infrastructure and engage with DeFi and Fi-tech projects.

Metaverse and Virtual Environments

• Metaverse growth: The metaverse is becoming a focal point for digital media transformation, with advertising dollars shifting to virtual spaces.
• Virtual experiences: Companies like Balenciaga and Lil Nas X are leveraging the metaverse for virtual concerts and digital commerce.
• Remote workspaces: The rise of remote work and hybrid models is being enhanced by virtual environments, with companies like Meta and Microsoft investing in virtual workrooms.

Music Rights Valuation

• High valuations: Music rights are becoming a lucrative investment, with major artists and estates selling catalogues for high prices.
• Notable sales: Bob Dylan, Bruce Springsteen, and David Bowie's estates sold their rights for significant sums, highlighting the growing value of music catalogues.
• Investment firms: KKR, BMG, and Hipgnosis are leading the charge in acquiring music rights, seeing long-term value in future royalties and licensing.

Key Deals and Investments

Acquisitions

• Vox Media & Group Nine: Expected to close in early 2022, combining major digital brands.
• Busuu & Chegg: Busuu was acquired by Chegg.
• Pinkbike & Outside: Pinkbike was acquired by Outside.
• SpeedTree & Unity: SpeedTree was acquired by Unity.
• GameRefinery & Vungle: GameRefinery was acquired by Vungle.
• Venatus & Livingbridge: Venatus received investment from Livingbridge.
• Photon (Exit Games) & Skillz: Photon received investment from Skillz.
• Lingoda & Summit Partners: Lingoda received investment from Summit Partners.
• AllTrails & Spectrum Equity: AllTrails was acquired by Spectrum Equity.

Investments

• GP Bullhound Fund V & Discord: Fund V invested in Discord.
• GP Bullhound Fund IV & Unity: Fund IV invested in Unity.
• GP Bullhound Fund III & Spotify: Fund III invested in Spotify and later realized the investment through a direct listing.
• GP Bullhound Fund IV & Quixel: Fund IV invested in Quixel, which was acquired by Epic Games.

Notable Digital Media Companies

SPAC IPOs

• BuzzFeed (NASDAQ: BZFD): Went public via SPAC merger with 890 Fifth Avenue Partners, raising $287.5m.
• Codere (NASDAQ: CDRO): Went public via SPAC merger with DD3 Acquisition Corp. II, raising $125m.

Investment Highlights

• ONE (NASDAQ: ONE): Acquired by Coatue and Guggenheim, focusing on social gaming.
• M (Platform for gaming short-form videos): Acquired by OMERS Ventures.
• MOONACTIVE (Mobile gaming development company): Acquired by Insight.
• NIANTIC (Augmented reality platform): Acquired by Coatue.
• ROYAL (NFT-based music platform): Acquired by Andreessen Horowitz.
• SINGULART (Online art gallery platform): Acquired by Vitruvian.
• OVERWOLF (User-generated gaming content platform): Acquired by Andreessen Horowitz.
• FORTE (Blockchain gaming platform): Acquired by Sea Kora.
• OpenWeb (Social engagement platform): Acquired by Insight and Georgian Partners.
• MYTHICAL (Gaming technology company): Acquired by Andreessen Horowitz.
• Gather (Social metaverse platform): Acquired by Sequoia Index Ventures.
• AXIOS (News and media publisher): Acquired by Cox Enterprises.
• SANDBOX (NFT gaming platform): Acquired by SoftBank Vision Fund.

Digital Media Indices and Performance

Q4 2021 Performance

• Diversified online content and social media: Market cap declined by 5.6%, with all companies posting losses.
• Music, video, and photos: Market cap declined by 6.9%, with slight gains in profitability.
• Western gaming: Market cap declined by 6.2%, with strong dependence between valuation, growth, and profitability.
• Asian gaming: Market cap declined by 9.4%, with the highest QoQ margin increase.

Rule of 60

• Companies above the Rule of 60: Tencent and Roku exceeded the benchmark, indicating strong user growth, revenue, and profitability.
• Close to Rule of 60: Pinterest, Weibo, Snapchat, and Netflix showed strong performance, with some falling short due to user growth issues.

Key Figures and Statistics

• Digital advertising revenue: Decreased by 20-30% in 2020 due to the pandemic.
• Market cap performance: The S&P and Dow Jones saw gains, while digital media indices faced losses due to inflation fears.
• EBITDA margins: Most digital media indices saw slight gains in profitability, with Asian gaming leading the increase.

Conclusion

The digital media sector in Q4 2021 continued to evolve with the adoption of NFTs, the rise of the metaverse, and the increasing value of music rights. M&A activity and SPAC IPOs were key drivers of liquidity and growth. Despite challenges, the sector remains dynamic, with continued investment and strategic moves by both public and private players.