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June 2013

INDUSTRY REPORT

Mobile Gaming

Overview
INSIDE THIS ISSUE
1. Overview
2. Mergers & Acquisitions
3. Private Financing
4. Valution Trends
5. Appendix
Global M&A Deals
Global Private Financing
Deals

Gaming is evolving from the traditional in-home console based platforms to digital
titles being played on mobile devices and connected consoles. Mobile gaming in
its various flavors is the fastest growth segment of digital gaming. Mobile has
changed quite dramatically from its beginnings on feature phones and game
optimized handheld devices such as the highly successful Nintendo DS and
PlayStation Portable. Handheld games initially were versions of popular console
games, adapted for mobile. Over time, as is the case with the Nintendo DS, games
have been designed more specifically for mobile consumers. A majority of mobile
games on smartphones today are casual, puzzle or other less complex genres that
can be played over many short gaming sessions.
Today mobile gaming is being driven by (i) emerging business models including
free-to-play (F2P) and advergaming; (ii) powerful technological advances in all
mobile devices enabling rich mid-core user experiences in addition to a wide array
of casual games; and (iii) the development of mobile platforms and App stores that
allow developers to sell directly to consumers and build communities. Cloud based
capabilities enabling the continuation of gameplay across platforms from consoles
to PC to mobile, etc. has also fostered growth in mobile gaming.
As mobile gaming revenue models have shifted from paid download to F2P with a
growing ad revenue stream, the influence of social/community dynamics has been
revolutionary to the sector. Social has not only made it easy to target and reach
large groups of users with similar demographics but has also led to rapid growth of
many titles and outstanding monetization. Community building and the inherent
virality of social has enabled publishers to achieve rapid customer acquisition or
downloads and, when combined with compelling monetization techniques, huge
aggregate revenue and impressive daily average revenue per user (DARPU) can
be generated.
The mobile gaming market is growing alongside the increasing penetration of
mobile devices. The proliferation of tablets with their robust technical capabilities
and attractive user interface has resulted in mobile becoming an attractive mid-core
gaming platform as well. Industry sources are reporting that tablets are enjoying
higher monetization rates than smaller smartphones across all revenue models
including paid downloads, in-game purchases and advertising. Additionally, tablets
are beginning to compete with consoles as an in-home gaming device with gamers
able to play on their platform of choice. Moreover, consumer spending on games in
the iOS App Store has overtaken the gaming optimized handheld channel. Google
Play revenue is also expected to soon exceed that from mobile handheld gaming
devices. The proliferation of mobile devices along with app stores providing
direct accessibility to end customers has brought in more developers and allowed
consumers to play free or low cost games in any location with ease.

Contact:
James Holzer
Partner
jholzer@redcapgroup.com

212.508.7103

Vikram Chandrasekaran
Vice President
vchandrasekaran@redcapgroup.com

Mobile, the fastest growing digital gaming segment, is projected to account for
34% of the global gaming market in 2017 compared to 20% in 2012, growing from
$12.3 billion to $29.6 billion or at a 19% CAGR, according to IDG. Major drivers of
this expansion are (i) the explosion of mobile devices in terms of number of units,
with their advanced technological capabilities and attractive user experience; (ii)
F2P revenue models that have enabled prolific monetization of gaming IP; and
(iii) a rapidly growing in-game advertising market including banner, interactive and
video ads as well as brand sponsorships (advergaming).
Global Gaming Market 2017

Global Gaming Market 2012


Mobile
$12.3 B
20%

212.508.7106

Redwood Capital
885 Third Avenue, 25th Floor
New York, NY 10022
www.redcapgroup.com

All Other Gaming


$49.2 B
80%

Mobile
$29.6 B
34%

Mobile CAGR
19%

Total Gaming CAGR


7%

All Other Gaming


$57.5 B
66%

Source: IDG

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Mobile Gaming
Mergers & Acquisitions
M&A ACTIVITY 2010-2013
M&A deal activity in the mobile gaming sector has surged over the last three years with
the number of deals growing to 42 in 2012 from 35 in 2011 and 21 in 2010. There have
also been 13 transactions in the sector in 2013 as of May. The majority of growth in deal
activity was attributable to established companies seeking to diversify into the mobile
space, adopt the rising trend of the F2P business model and social games, and update
their technology to improve cross-platform and monetization capabilities. In 2012 and
2013, there were 24 mobile game developer, 13 mobile social game developer, 13 app
/ tech or platform technology and 5 monetization related transactions. Total disclosed
enterprise values reached $2.6 billion in 2012 with 19 transactions disclosed.
Deal Volume by Target Type 2012-2013

M&A Deal Activity


40

$2,000

30

$1,500
20

$1,000

Deal Volume

Enterprise Value ($m)

$2,500

App / Tech or
Platform
24%

Mobile
43%

10

$500
$0

Monetization
9%

50

$3,000

2010

2011

Enterprise Value

2012
Deal Volume

Social
24%

Source: Capital IQ

The rise of free- and low-cost games on mobile platforms has created a highly fragmented
and dynamic industry. A single successful title can catapult a developer into competition
with large gaming companies. In order to compete with these companies, larger
companies have been acquiring development studios specializing in the most popular
game genres. Recently, the transactions with the largest disclosed enterprise values have
involved social gaming companies, coinciding with the hype around social media (for
example, overvalued IPOs of Facebook and LinkedIn and the acquisition of Instagram by
Facebook for $1 billion). Gree, Inc. acquired Pokelabo, a developer of mobile social games
for $173.8 million in October 2012 and Funzio, a developer of social and mobile games
for $210 million / 3.5x revenue, in May 2012. Nexon acquired gloops, Inc., a mobile game
developer for $468 million / 1.5x revenue in October 2012. Zynga acquired OMGPOP, for
the revenue and user base of its social game Draw Something for $183 million / 2.0x
estimated run rate revenue.
Examples of large companies entering the mobile space acquiring development capabilities
in popular game genres through large, highly valued transactions include Electronic Arts
acquiring PopCap Games, a developer and publisher of casual and puzzle games, for $1.3
billion / 13.0x revenue in July 2011 and Walt Disney acquiring Playdom, a social game
developer, for $763 million / 15.3x revenue in July 2010.
Although there have been only two large disclosed enterprise value platform technology
transactions - Tencents acquisition of 48.6% of Epic Games for $330 million (total EV of
Epic Games is $682 million) in June 2012 and Grees acquisition of OpenFeint, a mobile
gaming platform and community, for $104 million and negligible revenues in April 2011
- there have been a relatively large number of deals in this sub-segment. Acquisitions of
payment and other monetization capabilities also accounted for a negligible amount of
the total reported transaction values in the sector.
Due to the highly fragmented market in mobile gaming, transaction valuation statistics
tended to fluctuate drastically based on the strategy and needs of the buyer and the size of
the target, both in number of valuable titles and revenue generation. Similarly, the targets
generally did not report financial statistics limiting the sample set to a small number of
transactions. In comparison to the previously mentioned transactions, Zattikka paid 39.6x
revenue for Expedite 5, a developer of online and mobile social network games.

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Mobile Gaming

Year

Deal Volume

Disclosed Deal
Volume

Total EV*
($m)

Average EV*
($m)

Median Deal
Value* ($m)

2013 (YTD May)

13

7.6

7.6

7.6

2012

42

19

2,565.3

135.0

16.5

2011

35

17

2,681.3

157.7

38.4

2010

21

11

1,437.6

130.7

33.6

* For Disclosed Deals


Source: Capital IQ (in $ millions)

M&A TRENDS
Gaming companies have been acquiring mobile game developers, specifically of social
games. 13 or 35.1% of the 37 mobile game developers that were acquired in 2012 and
2013 focused on social games. Targets are sought after for specific titles, which provide
the acquiring companies with revenues, user bases and expertise in specific genres and
platforms. Zynga acquired OMGPOP mainly for the game Draw Something.
Over the past few years, Asian companies have accounted for a large percentage of deal
volume and disclosed transaction value within the mobile gaming market. In 2012, Asian
companies accounted for $1.4 billion or 53.1% of the $2.6 billion in disclosed transaction
enterprise values and 9 or 21.4% of the 42 transactions versus $0.6 billion or 24.1% of the
$2.7 billion and 11 or 31.4% of the 35 in 2011. With the financial capability to acquire and
platforms with significant user bases to leverage, Asian companies are attempting to break
into US and European markets, acquire titles that enhance the appeal of their platforms
and increase revenues through their high margin mobile gaming business models which
they have mastered. Gree enjoys 40% EBITDA margins versus Zynga, a US based Facebook
game developer with a 15% EBITDA margin.
Deal EV by Geography 2012

Deal Volume by Geography 2012

Europe
1%
Europe
31%

North America
46%

Asia-Pac
21%

Asia-Pac
53%

North America
48%

Source: Capital IQ

Gree, a Japan based leading worldwide mobile social gaming network worldwide with a
reach of over 140 million users, $1.5 billion in revenue and a market cap of $2.3 billion, has
embodied this recent trend. In 2012, Gree made 3 mobile gaming acquisitions, App Ant
Studios, a mobile social game developer, Pokelabo, a developer of mobile social games
for $173.8 million and Funzio, a developer of social and mobile games for $210 million /
3.5x revenue. Gree also acquired OpenFeint, a mobile gaming platform and community,
for $104 million in 2011.
A more recent trend is for companies with offerings adjacent to mobile gaming to acquire
into the sector. Mobile gaming provides an avenue to leverage existing users to generate
additional revenue. Yahoo, an online and mobile technology company that provides
search, advertising, content and communication services, recently acquired PlayerScale,
a software infrastructure developer for cross-platform gaming and Loki Studios, a mobile
game developer. In February 2013, Gree and Yahoo Japan, one of Japans largest internet
portals, launched a joint venture to develop social games for smartphones. After acquiring
a stake in the company in 2011, Tencent formed a partnership with Kingsoft to operate
online games together. Netcracker Online Services (Knewcleus), an Indian education
management software solutions provider acquired X2PN E-Learning, a developer of social
games for Web and mobile devices to apply gaming concepts to education.

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Mobile Gaming
We expect robust M&A deal activity in mobile gaming to continue through 2013 and in
the coming years. As adoption and technological capabilities of mobile devices continue
to increase, along with the development of gaming platforms and accessibility of app
stores, the number of mobile gamers and the revenue opportunity for companies will
grow. Because the mobile gaming industry is still in an early growth stage and highly
fragmented, augmented by the ability of small developers to reach the entire mobile
gaming community through app stores and platforms, there will continue to be large
companies looking to add gaming franchises. Supercell, with only two titles, Clash of
Clans and Hay Day, has become larger in mobile than Electronic Arts in less than a year
and prior to that, Rovio created a monster franchise with Angry Birds. Big transactions
will likely be seen as titles that generate significant revenue are highly attractive. With
mobile gaming platforms still developing, there will be an opportunity to acquire app
development capabilities and platform technologies to enhance mobile offerings. Finally,
we believe robust deal activity will continue in the US with increasing volume in Asia
including developed markets that have significant mobile gaming activity as well as areas
where mobile penetration and gaming is still growing exponentially such as India, China
and Russia.
Region

2011

2012

Deal Volume

Disclosed EV ($m)

Deal Volume

Disclosed EV ($m)

Asia-Pac

11

647.4

1,362.1

North America

14

1,923.2

20

1,174.7

Europe

10

110.8

13

28.5

TOTAL

35

2,681.3

42

2,565.3

Source: Capital IQ (in $ millions)

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Mobile Gaming
Private Financing

Private Financings Overview 2010-2013


Private financing has been robust with a 203% increase in capital flows to $381 million in
2011 and elevated levels in 2012. The number of transactions in 2011 picked up pace with
53 announced deals, reflecting an increase of almost 66% year-over-year (y/y). Several
companies were able to raise sizeable amounts of private capital in 2012, with the largest
round of $85 million being raised by US-based Joyent. Other sizeable deals included $67.3
million raised by PlayPhone, $60.8 million raised by Rock Gaming, and $20 million raised
by Beijing Downjoy. The increase in deal size with a marginal increase in the number of
transactions suggests that capital is increasingly going to larger, later-stage companies.
The mobile gaming industrys current fragmented state is fostering the rise of smaller
gaming companies that can generate large amounts of revenue with high margins. This
makes them highly attractive to private equity investors.

60

$400

50
40

$300

30
$200

20

$100

Deal Volume

Capital Raised ($m)

Private Financing Activity


$500

10

$0

0
2010

2011
Total Capital Raised

2012
Deal Volume

Source: Capital IQ

Similarly VC firms find successful mobile video game developers as an attractive


investment. In the new mobile gaming industry, successful titles come and go but investing
in a game developer can present huge returns as a single title can be leveraged through
cross marketing, reusable code and cheaper builds. Another trend that has permanently
changed private financing in the video game industry is the advent of crowdfunding.
One example is Kickstarter where the games category presently ranks as number two for
funds raised, just after the film and video category. To date, this platform has successfully
crowdfunded 1,656 game projects with 138 raising $100,000 or more. 18 have raised in
excess of $1 million. Gaming has a solid success rate on Kickstarter with an over 90%
success rate. Although we do not expect crowd funding to replace private funding, many
games will continue to be crowdfunded.
Looking ahead, the investment opportunity in the sheer size of the mobile gaming market
at more than $12 billion and more than 500 million mobile gamers with continued growth
will attract private investment. The mobile gaming market grew at 32% y/y in 2012, with
US alone growing by 16% y/y, making it one of the fastest growing industries. In 2013,
GungHo Online Entertainment successfully raised $266 million supporting the concept
that single title game developers can attract interest as these companies have the potential
to grow quickly. Furthermore, Supercell has reportedly been receiving significant interest
from private equity at very high values.
Year

# of Deals

% of Total

Total Capital Raised


($m)

% of Total

Avg. Deal Size


($m)

2013 (YTD May)

14

9%

45.1

5%

4.5

2012

51

34%

386.1

41%

12.5

2011

53

35%

381.2

41%

10.3

2010

32

21%

125.8

13%

5.7

Total

150

100%

938.2

100%

Source: Capital IQ (in $ millions)

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Mobile Gaming
Valuation Trends
STOCK PERFORMANCE
RELATIVE PERFORMANCE OF STOCK MARKET INDICES (%), 10/01/2009 - 05/31/2013
200

175

150

125

100

75

50

Nasdaq Composite Index

S&P500 Index

Custom Gaming Index *

Source: Bloomberg

Analysis of public sector gaming companies cannot be focused on mobile gaming as there
is a lack of pureplay mobile gaming companies. A single public company in the sector
does not provide an accurate representation of the overall market conditions. Looking at
the market trends of our Custom Gaming Index* over the past three and a half year, as
a proxy for mobile gaming, it is evident that gaming stocks have been very volatile and
have comprehensively underperformed compared to the broader indices. Since the end
of 2011, even as the broad indices moved northwards due to easing concerns over the
European credit crisis, gaming stocks have seemingly decoupled from the broad indices
and broken away steeply in the opposite direction.
Further, it can be observed that over the period under analysis, gaming stocks have eroded
in value, whereas the market has notched up with gains of at least 50% (the Nasdaq
Composite Index has surged approx. 59% and the S&P500 Index is up about 54%). Despite
this clear underperformance, it should be noted that in 2011, gaming stocks staged a
smart recovery to be almost on level terms with the broad indices as two large players,
Electronic Arts and Gree, appreciated significantly by 26% and 177%, respectively.
However, since December 2011, mobile stocks have declined significantly, in part, to
the poor post-IPO performance of Zynga and Nexon and negative perception of gaming
companies that resulted. Zyngas value plummeted about 60% since its IPO, with a
debilitating loss of 37% on July 26, 2012 alone, following the announcement of weak
quarterly results. In addition to negative triggers from recent listings, between January
2012 and July 2012 (the trough phase of the Custom Gaming Index), Electronic Arts
caved 49% in value terms related to weaker-than-expected sales of Star Wars: The Old
Republic and the continued failure to meet business transformation initiatives timelines.
Shanda Games surrendered 15% of its value during the corresponding period due to weak
operating performance spanning several quarters, which culminated in the resignation of
its CEO, Qunzhao Tan, in August 2012.
Not all gaming companies are performing poorly. Firms that acquire and develop popular
titles, manage expenses and adapt to popular game types, have had decent results.
Activision Blizzard trades at 2013 P/E multiple of 17.3x, which is at 22% premium to the
sector average in the US-Europe region (14.2x), owing to its high margin (36% expected
in 2014 vs. 26% sector average) and good revenue growth (9% y/y in 2014 vs. 10% sector
average). On the other hand, Com2uS and GAMEVIL trade at 2013 P/E multiples of 20.6x
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Mobile Gaming
and 18.9x, respectively, which are at 71% and 57% premium, respectively, to the sector
average in the Asia-Pac region (12.0x). The reason for such big premiums is the high
revenue growth expectation of 28% y/y in 2014 for both vs. 12% y/y sector average; even
though their margins are much lower than the highest sector margin of 56%.
* The Custom Gaming Index is a market-capitalization weighted index created by us to
chart the performance of prominent publicly listed global mobile gaming companies. The
constituents of the Custom Mobile Gaming Index and their weightings are as follows:
Electronic Arts (28.7%), Shanda Games (15.5%), Gree (11.5%), Perfect World (11.0%),
Changyou (8.1%), Giant Interactive (7.2%), DeNA (6.6%), Take-two Interactive (4.2%),
NeoWiz Games (3.7%), GameLoft (1.9%), GungHo Online (1.4%) and Glu Mobile (0.2%).
Note that we have not included Zynga and Nexon in the index due to their limited trading
history, given that both the IPOs were listed in December 2011. We have assumed no
rebalancing of the index during the period under analysis.
Multiples Snapshot
Company Name

Price Mkt.Cap

EV

EV/Revenue

EV/EBITDA

($m)

($m)

2012

2013E

2012

P/E

2013E

2012

LT EPS
2013E Growth

Asia-Pac
Gree, Inc.

9.78

2,284

2,135

1.1x

1.4x

2.4x

4.1x

4.5x

8.3x

DeNA Co

20.51

2,752

2,118

1.0x

1.0x

2.2x

2.6x

5.4x

6.5x

8.2%

12871.29

14,824

14,629

49.0x

8.0x

113.1x

22.6x

156.2x

24.9x

35.8%
20.0%

GungHo Online

-8.6%

Capcom Co

15.95

918

777

0.6x

0.8x

3.6x

5.0x

7.8x

14.4x

Changyou.com

30.75

1,630

1,511

2.4x

2.0x

3.8x

3.6x

5.8x

5.4x

9.8%

Perfect World Co

15.43

748

497

1.2x

1.1x

4.1x

5.1x

8.6x

9.0x

14.9%
12.3%

NetEase, Inc

63.93

8,301

5,828

4.4x

3.7x

9.3x

7.5x

14.2x

11.9x

Nexon Co

10.20

4,455

3,893

3.1x

2.7x

5.5x

5.6x

15.2x

12.1x

0.0%

NEOWIZ Games

15.82

347

356

0.6x

0.7x

2.7x

3.1x

49.2x

6.2x

29.0%

Com2uS Corp

41.28

400

368

5.1x

3.7x

21.3x

14.8x

20.8x

18.0x

39.1%

138.78

2,759

2,255

3.2x

3.2x

12.7x

9.8x

18.8x

17.5x

28.7%

4.12

1,110

868

1.3x

1.2x

3.3x

3.9x

6.2x

6.0x

8.0%

106.96

594

545

8.2x

5.9x

22.6x

17.0x

28.2x

22.2x

34.9%

Average

6.2x

2.7x

15.9x

8.0x

26.2x

12.5x

17.9%

Median

2.4x

2.0x

4.1x

5.1x

14.2x

11.9x

14.93%

NCsoft Corp
Shanda Games
GAMEVIL Inc

US & Europe
Electronic Arts

22.99

6,958

5,837

1.5x

1.4x

14.4x

6.9x

39.8x

14.3x

15.2%

Activision Blizzard

14.43

16,126

11,508

2.4x

2.7x

7.3x

8.2x

14.0x

16.9x

10.5%

Take-Two Interactive

16.64

1,529

1,461

1.4x

n.a

n.a

n.a

n.a

n.a

10.9%

Zynga

3.40

2,699

1,531

1.2x

1.6x

26.8x

21.3x

n.a

n.a

15.7%

Giant Interactive

8.46

2,025

1,556

4.6x

3.9x

7.0x

6.1x

12.7x

8.9x

12.8%

GameLoft

7.17

570

498

1.8x

1.6x

11.6x

9.4x

46.6x

19.3x

55.0%

Glu Mobile, Inc

2.71

186

164

1.9x

1.9x

n.a

n.a

n.a

n.a

0.0%

Average

2.1x

2.2x

13.5x

10.4x

28.3x

14.9x

17.2%

Median

1.8x

1.8x

11.6x

8.2x

26.9x

15.6x

12.8%

Source: Capital IQ (in $ millions except for share price, as of 05/31/2013)

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Page I 7

Mobile Gaming
Appendix: Transaction List
Global M&A Deals - Mobile Gaming (2010-2013)
Revenue EBITDA
[LTM]
[LTM]
($m)
($m)

EV /
Rev.

EV /
Major Business Focus [Target/Issuer]
EBITDA

Target/Issuer

5/28/2013

Social

RoseTech Ventures, LLC; First Round


Refinery29, Inc.
Capital

5/23/2013

Platform

PlayerScale, Inc.

Yahoo! Inc.

5/10/2013

Mobile

Loki Studios, Inc.

Yahoo! Inc.

5/10/2013

Mobile

Butterfly Corporation

Sammy Networks Co., Ltd.

4/29/2013

App / Tech

Tricycle, Inc.

Jeffrey Scott Agency, Inc.

Develops applications for iOS, Android,


Windows, Amazon, and Blackberry phones
and tablets

4/16/2013

Social

X2PN E-Learning Pvt Ltd

Netcracker Online Services


Private Ltd.

Publishes social games for Web and mobile


devices

4/8/2013

Mobile

IGN Entertainment, Inc., Ign Pro


League Assets And Technology

Blizzard Entertainment, Inc.

Develops video games for web and mobiles

4/2/2013

Mobile

Blue Square Limited

Betfair Group PLC

7.6

Offers betting services on sports, live games,


poker and casino games, bingo games, and
mobile games

3/11/2013

Mobile

BLUESOM Co, LTD.

2/27/2013

App / Tech

2/25/2013

Mobile

Robotoki Inc.

Nexon Co. Ltd.

2/3/2013

App / Tech

Riptide Games, Inc.

Mercury Active Inc.

1/15/2013

Social

Exploding Barrel Games Inc.

Kabam, Inc.

Develops mobile and Web-based socially


connected games for various platforms,
such as Facebook, iPhone, and iPad

12/28/2012 App / Tech

Storycode, Inc.

TigerLogic Corporation

7.7

Publishes mobile applications for iPhone,


iPad, Kindle Fire, and Android platforms

12/27/2012 Monetization

Infocomm Asia Holdings Pte. Ltd.,


Proprietary Billing and Payment
System

Corous360 Private Limited

2.0

Facilitates online, mobile and pre-paid game


payments

12/14/2012 Mobile

Star Filled Studios Inc.

Valve Corporation

12/10/2012 Mobile

Studio Ex

Disney Interactive Studios, Inc.

12/4/2012

Mobile

Buyers/Investors

EV
($m)

Ann. Date Target Type

Reliance BIG Entertainment


Private Limited
Xian Control-Strength Digital Culture Shenzhen ZQGame Co.,Ltd.
Development Co., Ltd.
(SZSE:300052)

Develops mobile games for social networks


Develops infrastructure software for crossplatform gaming
Develops games for the mobiles
Provides games and entertainment Web
content for mobile and PC platforms

Operates a gaming studio and develops and


publishes mobile games
Provides iPhone/iPad mobile game
application and development services
Develops games and IPs for consoles, PCs,
mobiles, and tablets
Develops mobile gaming applications

Designs games for mobile, steam and other


platforms
Develops and markets multiplayer, free-toplay Online and mobile games
Develops and markets games for mobile
phones, computers and videogame consoles
Develops social, browser and mobile games
Develops mobile games
Engages in the development and marketing
of mobile social games
Develops entertainment software and
mobile games

TapMe, Inc.

MediaMath Inc.

11/23/2012 Social
11/1/2012 Mobile

Drimmi LLC
Digital Goldfish Limited

Webgames
Kaiparasoft Ltd

10/24/2012 Social

Pokelabo, Inc.

Gree, Inc. (TSE:3632)

173.8

10/9/2012

Mobile

Fudeco Oy

Arcusys Oy

10/2/2012

App / Tech

Viewdle, Inc.

Motorola Mobility Holdings,


Inc.

45.0

Mobile-focused computer vision company


that enables the creation of new user
experiences in mobile gaming among others

10/1/2012

Mobile

gloops, Inc.

Nexon Co. Ltd.

467.6

304.3

1.5x

Develops and operates social games, which


users play while communicating with people
online

9/25/2012

Monetization

TheMobileGamer Pte Ltd.

SOFTBANK CORP. (TSE:9984);


SingTel Idea Factory Pte Ltd.

4.1

Offers online tool that wraps mobile games


and applications with features to increase
sales and revenues

9/17/2012

App / Tech

Comviva Technologies Limited

Offers mobile applications

9/17/2012

Social

App Ant Studios, Inc.

Tech Mahindra Limited


(BSE:532755)
GREE International, Inc.

8/16/2012

Monetization

KITN Media, Inc.

Playerize Networks Inc.

8/15/2012
8/2/2012
7/19/2012
6/21/2012

Mobile
Social
Platform
Social

Boss Alien Limited


The Playforge, LLC
Playyoo SA
Roadhouse Game Studios

NaturalMotion Ltd.
Saban Brands LLC
Probability Plc (AIM:PBTY)
Roadhouse Interactive Ltd.

4.8
-

6/19/2012

Platform

Epic Games, Inc.

Tencent Holdings Ltd.

681.8

Develops social mobile games


Provides monetization services for free-toplay games, mobile, and online merchants
Develops games for mobile devices
Develops mobile social games
Online mobile games community
Develops social and mobile games
Develops games and cross-platform game
engine technologies
Develops and publishes slot, casino and card
games for user computers
Develops and publishes online games
Develops custom games and multimedia
applications for mobile phones

6/15/2012

App / Tech

6/8/2012

Mobile

WMS Industries Inc.


Genesis Communications Inc.
(NYSE:WMS)
NCsoft Corporation (KOSE:A036570) Nexon Co. Ltd. (TSE:3659)

6/8/2012

App / Tech

NINJ GmbH

Tranzistor Systems Inc.

6/4/2012

Mobile

5/21/2012

Mobile

5/15/2012
5/14/2012

App / Tech
Social

Shape Minds, Nighty Night and Little


goodbeans GmbH
Fox Music Box
WMS Industries Inc.
Jadestone Group AB
(NYSE:WMS)
actsmartware GmbH
Bitzio, Inc. (OTCPK:BTZO)
Wild Needle, Inc.
Zynga, Inc.

5/10/2012

Monetization

GameBux

www.redcapgroup.com

Oomba, LLC

24.3

685.0

79.7

8.6x

3.0

Interactive bedtime application for kids


Develops managed Web, console and
mobile game solutions
Develops software and mobile applications
Develops and offers social games for mobile
Virtual currency system for games that
works with both online and mobile games

Page I 8

Mobile Gaming
Revenue EBITDA
[LTM]
[LTM]
($m)
($m)

Ann. Date Target Type

Target/Issuer

Buyers/Investors

EV
($m)

EV /
Rev.

EV /
Major Business Focus [Target/Issuer]
EBITDA

5/7/2012

Mobile

Penultimate Inc.

Evernote Corporation

5/1/2012

Social

Funzio, Inc.

GREE International, Inc.

210.0

60.0

3.5x

13.1

2.1

6.2x

Develops chess games and applications for


mobile phones.
Develops and markets social and mobile
games
Develops mobile games, content and
software

4/23/2012

Mobile

Fever Studio Co., Ltd.

Joymax Company Ltd.


(KOSE:A101730)

4/20/2012

Social

Expedite 5, Inc.

Zattikka Plc (AIM:ZATT)

2.7

0.1

39.6x

Operates as an online and mobile gaming


company that develops social network
games and mobile applications

4/11/2012

Mobile

Concept Art House, Inc.

Zattikka Plc (AIM:ZATT)

13.0

Designs mobile, Facebook, and console


games

3/31/2012

Mobile

Nordic Betting Ltd.

Unibet Group plc (OM:UNIB


SDB)

18.0

60.0

0.3x

Gaming entertainment site

3/21/2012

Social

OMGPOP, Inc.

Zynga, Inc. (NasdaqGS:ZNGA)

182.8

91.4

2.0x

Provides an online platform to play games,


chat and share photos

2/22/2012

Monetization

BringIt, Inc.

International Game
Technology (NYSE:IGT)

10.1

Provides a virtual currency casino/arcade


for game publishers, brands and media
Websites

2/17/2012

App / Tech

Mutado s.r.l.

De Agostini Publishing Italia


S.p.A.

Provides solutions for mobile applications,


games and development

2/15/2012

Mobile

Noumena Innovations (BVI) Ltd.

Kongzhong Corp.
(NasdaqGS:KONG)

16.5

Develops cross-platform smartphone


mobile game engine for the iOS and android
platforms

2/3/2012

Social

Doppelgames Inc.

1/18/2012

Mobile

1/14/2012

Mobile

Escalation Studios, LLC


Gamedoctors UG
(haftungsbeschrnkt) & Co. KG

1/11/2012

Mobile

12/9/2011

Mobile

12/5/2011

Mobile

Handmade Mobile
Entertainment Limited
6waves Lolapps Inc.

Develops mobile social games and


interactive storytelling
Designs and develops mobile games
Develops games for iPhone, iPod Touch,
iPad, and other mobile platforms
Develops mobile entertainment applications
and games
Provides mobile games
Offers videogames for PCs, consoles,
handheld consoles, Smartphones and PDAs
Develops mobile applications for mobile
phones

Zynga, Inc.

App Creation Network LLC

Chairseven Agency, LLC

Supermono Studios

Red Robot Labs, Inc.

SpinVector s.r.l

IMI Fondi Chiusi SGR SpA

SPB Software Inc.

Yandex N.V. (NasdaqGS:YNDX)

38.4

11/25/2011 App / Tech

Artificial Life, Inc. (OTCPK:ALIF)

Corporate Finance Partners


CFP Beratungs-GmbH,
Investment Arm

18.4

Develops, markets and distributes


applications for mobile phones

11/11/2011 Monetization

ReachFurther Communications
Limited

GLOBO Mobile S.A.

1.4

Operates as a content aggregator/provider


for mobile and fixed telecommunications
markets

10/27/2011 App / Tech

Qbrick AB

TDF S.A.S

9.1

10/24/2011 Platform

Real Dice Inc.

Appcelerator, Inc.

6.3

66.3

3.0

0.1x

2.1x

11/28/2011 App / Tech

10/6/2011

Mobile

G-mode Co., Ltd.

Aplix IP Holdings Corporation


(TSE:3727)

9/15/2011

Monetization

Unicell Advanced Cellular Solutions


Ltd.

TMT Investments PLC


(AIM:TMT)

28.3

56.6

0.5x

8/30/2011

Monetization

Digital Reach Group Limited

Take 5 Solutions, L.L.C.

8/19/2011

App / Tech

Novamira Corp.

SuperBox, Inc. (OTCPK:SBOX)

10.0

8/15/2011

Social

Bight Interactive Inc.

Electronic Arts Inc.


(NasdaqGS:EA)

8/11/2011

Mobile

Surna Media Inc.

Surna Inc.

8/11/2011

Mobile

Ultizen Games Ltd.

8/2/2011

Mobile

Blammo Games Inc.

Gree, Inc. (TSE:3632)


Glu Mobile, Inc.
(NasdaqGS:GLUU)

8/2/2011

Mobile

Griptonite Inc.

Glu Mobile, Inc.

7/27/2011

Mobile

HOTDOG Studio INC.

NCsoft Corporation
(KOSE:A036570)

7/20/2011

Social

Insider Guides, Inc.

MeetMe, Inc. (AMEX:MEET)

7/12/2011

Social

PopCap Games, Inc.

Electronic Arts Inc.

7/6/2011

Mobile

Kingsoft Corporation Limited


(SEHK:3888)

6/7/2011

Platform

Scoreloop AG

Tencent Holdings Ltd.


(SEHK:700)
Research In Motion Limited
(TSX:BB)

5/13/2011

Monetization

Chartwell Technology Inc.

Amaya Gaming Group Inc.


(TSXV:AYA)

5/12/2011

Monetization

Selatra Limited

24 Mobile Advertising
Solutions AB

5/10/2011

App / Tech

Liveware Inc.

Marvelous AQL Inc. (TSE:7844)

5/3/2011

Mobile

Firemint Pty Ltd.

Electronic Arts Inc.

www.redcapgroup.com

21.9

57.8

21.3

2.7x

100.0

28.9

4.6

3.7x

19.6x

1,301.2

100.1

13.0x

536.8

150.6

52.0

3.6x

10.3x

71.0

9.6

10.3

1.0x

7.2

9.0

0.8x

Provides cloud-based video management


solutions for multi-screen delivery
Offers mobile gaming and HTML5
development platform
Develops and distributes games for Javacompatible mobile phones
Provides mobile application and content
services for business, media, publicity and
entertainment markets
Offers digital marketing and publishing
services across various platforms
Develops streaming video platforms, mobile
applications and online gaming software
Designs and develops mobile social games
Engages in developing web and mobile
games
Smartphone game developer and publisher
Operates as a mobile gaming development
studio
Develops games for various applications,
including handheld devices
Develops mobile games for both features
phones and smartphones
Operates a social networking website and
social games
Develops, publishes, and operates casual
and puzzle video games
Engages in the research & development and
provision of online and mobile games
Social gaming platform for the mobile
devices
Engages in developing, marketing, licensing,
implementing and supporting gaming
applications and entertainment content
Provides mobile game services sourcing
from game publishers
Develops and operates content for mobile
phones
Develops games for iPhones and iPads

Page I 9

Mobile Gaming
EV
($m)

Revenue EBITDA
[LTM]
[LTM]
($m)
($m)

EV /
Rev.

EV /
Major Business Focus [Target/Issuer]
EBITDA

Ann. Date Target Type

Target/Issuer

Buyers/Investors

5/1/2011

Platform

Miles Ahead Ltd

EveryMatrix Ltd

4/29/2011

Social

ZipZapPlay, Inc.

PopCap Games, Inc.

4/21/2011

Platform

OpenFeint Inc.

GREE International, Inc.

104.0

0.3

368.1x

4/18/2011

Social

Social Gaming Network, Inc.

MindJolt, Inc.

3/18/2011

Social

Floodgate Entertainment, LLC

Zynga, Inc. (NasdaqGS:ZNGA)

2/14/2011

Platform

Rapid Mobile Media Limited

Rank Interactive Gaming Ltd.

2/8/2011

Platform

Fatzoo Pty Ltd

Motopia Limited (ASX:MOT)

0.5

Provides gaming networks and products


for gaming operators and other software
companies
Design and develops social games
Provides mobile social gaming network for
iPhone, iPad, and Android devices
Develops and publishes social mobile games
Develops games for PC, mobile, and social
gaming platforms
Provides mobile application and service
delivery software platforms
Owns and operates mobile peer to peer
gaming platform
Publishes and markets mobile games and
personalization content
Operates as a direct-to-consumer video
game developer and publisher
Develops game and entertainment software
Engages in the design and production of
games for mobile platforms

2/8/2011

Mobile

THQ Wireless, Inc.

24 Mobile Advertising
Solutions AB

2/2/2011

Social

Riot Games, Inc.

Tencent Holdings Ltd.

328.6

28.6

11.5x

1/20/2011

Mobile

Hudson Soft Co., Ltd.

Konami Corp.

58.3

194.3

9.7

0.3x

6.0x

Celestial Digital Entertainment, Ltd.

Profit Harvest Company, Ltd.

1.8

VODone LIMITED (SEHK:82)

33.6

Designs and develops mobile game platform

Zynga, Inc.

53.2

1.0

400.0

30.1

13.3x

Develops games for mobiles


Develops mobile applications, games and
campaigns
Publishes, markets, and distributes video
games and lifestyle applications
Develops and builds games for mobile
devices and smartphone gaming platforms
Offers software and applications for mobile
Internet devices

19.3

Offers mobile and social gaming solutions

Offers free-to-play games for iOS, iPhone,


Android, and other mobile platforms

12/21/2010 Mobile
12/7/2010

Platform

12/2/2010

Mobile

3GUU Mobile Entertainment


Industrial Co., Ltd.
Newtoy, Inc.

11/24/2010 Mobile

2moro Mobile Pty Ltd.

Motopia Limited (ASX:MOT)

10/20/2010 Social

Chillingo Ltd.

Electronic Arts Inc.

10/12/2010 Mobile

ngmoco, LLC

DeNA Co., Ltd.

Ozura World Ltd.

PT Inovisi Infracom Tbk


(JKSE:INVS)

10/11/2010 Platform
10/1/2010

Social

Bravo Games S.L.

Sociedad para la Promocin y


Reconversin Econmica de
Andaluca, S.A.

9/13/2010

Social

Gameview Studios, LLC

DeNA Global, Inc.

8/26/2010

Monetization

ExtendMedia Corporation

7/27/2010

Social

Playdom, Inc.

Cisco Systems, Inc.


(NasdaqGS:CSCO)
The Walt Disney Company

7/12/2010

Mobile

dtp entertainment AG

7/1/2010

App / Tech

Tapulous Inc.

6/22/2010

Mobile

Ourpalm Co., Ltd. (SZSE:300315)

4/27/2010

Platform

Airmotion GmbH

Huayi Brothers Media


Corporation (SZSE:300027)
HQTA AG

3/23/2010

App / Tech

Sennari, Inc.

3/3/2010
2/23/2010

Social
App / Tech

2/3/2010

3.0

Provides software and media services

763.2

49.9

15.3x

Social game developing company

Beaufort Capital GmbH

Offers entertainment software for various


interactive entertainment and mobile
platforms

Disney Interactive, Inc.

42.0

12.0

3.5x

99.0

38.5

12.8

2.6x

7.8x

Connect2 Media Limited

MindJolt, Inc.
Handango, Inc.

Austin Ventures
Appia, Inc.

Mobile

Seed 9 Entertainment, Inc.

CJ Internet Corp.

11.5

2/3/2010

Mobile

Alawar Entertainment Inc.

Almaz Capital Partners; Almaz


Capital Russia Fund I, L.P

13.0

Develops and publishes casual games

1/19/2010

App / Tech

DS Media Labs, Inc.

Apperian, Inc.

Operates as an iPhone and iPod touch


design and development studio

Develops applications on iPhone and iPod


touch platforms
Develops, publishes, and operates mobile
terminal and Internet games
Produces mobile content products
Provides mobile application development
and gaming solutions for carriers and
handset makers
Develops and operates social mobile games
Provides smartphone applications
Develops personal computer, playstation,
mobile and online games

Source: Capital IQ (in $ millions)

www.redcapgroup.com

Page I 10

Mobile Gaming
Global Private Financing Deals - Mobile Gaming (2010-2013)
Amount
($m)

Round of
Financing

Kamicat GmbH
Swoopt Fantasy Sports
Greengar Studios LLC

0.2
0.1

4/12/2013

PlayFirst, Inc.

2.0

4/9/2013

Peak Games

4/3/2013

Brainbow Limited

1.0

Seed

3/25/2013

GungHo Online Entertainment, Inc.

265.6

3/19/2013

NonStop Games Ltd

2.8

Seed

3/13/2013

Arkadium, Inc.

5.0

2/8/2013

Bee Cave Games, Inc.

1.4

Seed

2/5/2013

Game Insight LLC

25.0

IMI.VC

1/29/2013

Freeze Tag, Inc.

Hanover Holdings I, LLC

1/29/2013

Pluto Games, Inc.

0.5

Learn Capital Venture Partners

1/8/2013

BrightContext Corporation

Militello Capital

Designs and develops real-time products for mobile


applications, social TV, real-time analytics, and multi-player
games

1/7/2013

Intelligent Business Entertainment Inc.

7.1

Rho Capital Partners, Inc.; New York City


Investment Fund Manager, Inc.; Contour Venture
Partners

Develops compliance and regulatory training games and


applications for mobile platforms

12/31/2012
12/31/2012

Shanghai Soco software Co.,Ltd.


Idreamsky

10.0

2
-

12/11/2012

Kabam, Inc.

12/4/2012

Green Throttle Games, Inc.

6.0

11/15/2012

My Manisku Pte. Ltd

0.6

Seed

11/13/2012

Corona Labs Inc.

2.0

11/13/2012

Medium Entertainment, Inc.

8.0

11/13/2012

2.5

10/22/2012
10/4/2012
9/4/2012

Adictiz SAS
SOFTGAMES - Mobile Entertainment
Services GmbH
Groupe Interaction Sarl
JumpStart, Inc.
Playspace S.L.

0.8
1.9

1
-

e.ventures; GGV Capital; Tandem Entrepreneurs


Management Services, LLC.
Omnes Capital
IBB Beteiligungsgesellschaft mbH; Software &
Support Media GmbH
NCI Gestion, S.A.S.
Telesoft Partners; Azure Capital Partners
Faraday Venture Partners; PeopleFund

8/16/2012

www.Games.de GmbH

iVentureCapital GmbH

7/16/2012

Trendy Entertainment Inc.

18.2

7/10/2012

Phoenix Guild Inc

1.1

Seed

Insight Venture Partners


Accel Management Co, Inc.; General Catalyst
Partners; YouWeb

7/10/2012

Rancard Solutions Ltd

7/9/2012

Betable Limited

7/6/2012

Twist Mobile Private Limited

Greylock Partners; The Founders Fund; True


Ventures
Matrix Partners India

6/21/2012

NaturalMotion Ltd.

11.0

Benchmark Capital

6/5/2012

BeiZ Oy

1.0

Inventure Oy; Tekes

5/23/2012

Vivid Games Splka Akcyjna (WSE:VVD)

1.0

5/11/2012

Forth Smart Service Co.,Ltd

9.0

5/8/2012

session M, Inc.

20.0

4/26/2012
4/23/2012
4/19/2012

Saborstudio
Link Tomorrow Co.Ltd
D.CN

1.8
20.0

Seed
-

Giza Venture Capital; National Capital Fund SA


Forth Corporation Public Company Limited
(SET:FORTH)
Charles River Ventures; Highland Capital Partners;
Kleiner, Perkins, Caufield & Byers
DreamIt Ventures
Joymax Company Ltd. (KOSE:A101730)
SAIF Partners

4/18/2012

Mo'Minis, Ltd.

4.5

4/11/2012
4/9/2012
4/2/2012
4/1/2012

Mugeda Inc.
Wizcorp Inc.
Dragonplay
Jungle Apps

14.0
1.0

Seed
Seed

3/31/2012

Beijing Downjoy Information Tech


Co., Ltd

20.0

SAIF Partners; Qiming Weichuang Venture Capital


Owns and operates gaming portal that offers mobile phone
Management (Shanghai) Company Limited; Beijing
games
Grains Valley Capital Co., Ltd.

3/31/2012

Time4Mobi sp. z o.o.

MCI Management Spolka Akcyjna (WSE:MCI)

3/30/2012

Caesars Interactive Entertainment, Inc.

60.8

Rock Gaming, LLC

Ann. Date

Target/Issuer

5/6/2013
4/19/2013
4/15/2013

10/23/2012

www.redcapgroup.com

Buyers/Investors

Major Business Focus [Target/Issue]

iVentureCapital GmbH
Tandem Entrepreneurs Management Services, LLC.
500 Startups
Mayfield Fund; Rustic Canyon Partners; Trinity
Ventures; DCM
Earlybird Venture Capital GmbH & Co. KG;
Hummingbird Ventures; Endeavor Global, Inc.,
Investment Arm; Endeavor Catalyst
DN Capital Limited; Jaina Capital; London Venture
Partners LLP; Initial Capital; Lifeline Ventures, LLC;
Initial Capital

Develops social games for Facebook, PCs and mobile devices


Operates as mobile daily fantasy sports games
Develops mobile applications and games

Softbank Mobile Corp.


Creandum AB; Lifeline Ventures Oy; Creandum III
Edison Venture Fund
Glu Mobile, Inc.

Shanghai International Group Venture Capital


Redpoint Ventures; Legend Capital
Metro-Goldwyn-Mayer Studios Inc.; Warner Bros.
Enterprises LLC
Trinity Ventures; DCM
TNF Ventures
Western Technology Investment; Merus Capital

Intel Capital; Adlevo Capital Managers, LLC

Publishes mobile, social, and casual games worldwide


Develops and publishes social games for browser and clientbased core games and mobile applications
Builds technology and games on mobile phones and tablets
Develops and distributes online games, mobile games, flash
games, and consumer games
Develops games for gamers across mobile and tablet platforms
Develops, publishes, and distributes online casual, social, and
mobile games
Develops social and mobile games
Develops games and applications for mobile and social
platforms
Develops and markets games across various digital distribution
platforms, including mobile
Develops gaming software for mobile phones, tablets, and
other mobile devices

Develops and publishes mobile games in China


Develops and publishes mobile games
Develops multiplayer games on mobile
Offers mobile and console games, builds multiplayer games
and controllers
Provides mobile stock market simulation application for mobile
Develops platform for developing games, eBooks, business
applications, and other mobile experiences
Provides a real-time promotion and monetization platform for
mobile games
Develops mobile and web based games
Develops games and applications for mobile platforms
Designs and publishes web and mobile games
Designs and produces educational mobile application for kids
Develops mobile games and online social games
Offers social, casual, online, mobile, computer, and console
games
Develops and provides video games
Develops games for mobile devices
Provides cloud-based mobile software and services for mobile
subscribers
Offers real-money gambling and gaming platform
Develops and publishes mobile applications and games
Develops and markets animation technologies for games and
broadcast markets
Develops and publishes educational, knowledge, and nonviolent games for adults and children
Develops and delivers mobile and digital games for mobiles
Offers its products for topping-up the prepaid mobile phones
and online games
Develops a mobile application tool

Design and develops mobile games


Develops mobile games
Mobile platform that brings games like Angry Birds to China
Provides solutions for the creation, porting and publishing of
BRM Group; Mitsui & Co. Global Investment Ltd.
mobile games
InnoSpring
Cloud-based solution for rich-media contents for smart devices
GREE Ventures, Inc.
Development mobile social games
Founder Collectiv, ACCEL, Entre Capital
Free-to-play social games developer
Tandem Entrepreneurs Management Services, LLC. Develops multi-player social games and mobile applications

Markets mobile games and applications


Operates as an online, mobile, and social gaming company
focused on casino entertainment

Page I 11

Mobile Gaming
Ann. Date
3/29/2012

Target/Issuer

Amount
($m)

Round of
Financing

Buyers/Investors

Major Business Focus [Target/Issue]

Silverton Partners; Capital Factory; Liahona


Ventures LLC; Zilker Ventures, LLC

Develops mobile games for families

Famigo, Inc.

1.0

Seed

MediaTek Inc.; Pacific Venture Partners

Develops and sells feature phone and smartphone games

3/21/2012
3/5/2012

China Mobile Games and Entertainment


Group Limited (NasdaqGM:CMGE)
Red Robot Labs, Inc.
Seastar Games

5.0
-

3/2/2012

TapMe, Inc.

3.2

Next Media Limited (SEHK:282)


BlueRun Ventures
Western Technology Investment; Hyde Park Angels;
Great Oaks Venture Capital

3/1/2012

PlayPhone, Inc.

67.3

Menlo Ventures

2/25/2012

Tyler Projects Pte Ltd

0.2

Media Development Authority of Singapore

2/22/2012

moyasoft Corp.

Nexon Korea Corporation

Offers multiplayer online games for mobiles


Operates as a mobile gaming company
Develops and markets games for mobile phones, computers
and videogame consoles
Offers social applications and games, and downloadable
mobile entertainment content
Offers social games, mobile games, and gaming platforms
Develops social games for mobile phones and personal
computers

PT Inovisi Infracom Tbk (JKSE:INVS)

Mobile multimedia application service provider

Seed

Provides online, social and mobile games for women


Offers social and mobile games
Provides mobile games for iOS and Android platforms

1.2

Seed

Connecticut Innovations, Inc.


Marvelous AQL Inc. (TSE:7844)
Y Combinator
Kima Ventures; AX Ventures SRL; 500 Startups;
AngelList LLC

3/21/2012

2/15/2012
2/9/2012
1/31/2012

NextNation Communication Bhd


(KLSE:NEXTNAT)
Stone Creek Entertainment LLC
Checkpoint Studios, Inc.
LVL6, INC.

1/23/2012

Pixowl Inc.

2/15/2012

Develops mobile games

El Dorado Ventures; EPIC Ventures; Intel Capital;


Greycroft Partners LLC; Liberty Global Ventures;
Telefonica Ventures

Offers mobile applications, online games, and hosting services

Menlo Ventures

Provides free2play community-based mobile MMO games


Develops mobile applications and games for various ages
Develops mobile phone games

1/23/2012

Joyent, Inc.

85.0

1/20/2012

Addmired, Inc.

8.0

1/17/2012
1/16/2012

GetBonkers, Inc.
Mobicle Co., Ltd.

0.1
-

Seed
-

12/31/2011

Bionic Panda Games, Inc.

Seed

12/31/2011

Sybo Games ApS

Amplify.LA
GREE Ventures, Inc.
Norwest Venture Partners; SoftTech VC; Google
Ventures; 500 Startups
CAT Seed A/S

12/31/2011

PlayerDuel, Inc.

Rainmaking ApS

12/31/2011
12/30/2011

Idreamsky
Ascend Acquisition Corp. (OTCBB:ASCQ)
Beijing Leiyoo Information Technology
Co., Ltd.

2.0

1
-

Lenovo Group Limited (SEHK:992)


Ironbound Partners Fund LLC

Offers free-to-play games for mobile devices focused on iOS


Develops a platform for mobile phone games which allows
users to compete with each other
Develops and publishes mobile games
Develops mobile games for iOS and Android devices

WI Harper Group; Innovation Works Ltd.

Develops mobile game platform using HTML5

Corporacin de Fomento de la Produccin

2.7
0.2

Seed

2.0

12/20/2011
12/16/2011

IguanaBee Inc.

12/6/2011
11/30/2011

SpinVector s.r.l
Woodla
InGameAd Interactive Technology
Limited

11/14/2011

IMI Fondi Chiusi SGR SpA


Farminers
WPP plc (LSE:WPP); Revolution Capital Group, LLC;
SingTel Innov8 Pte. Ltd.
Van den Ende & Deitmers Venture Capital Partners;
North Bridge Growth Equity
Telefield International (Holdings) Limited
(SEHK:1143)

11/2/2011

SPIL Games B.V.

10/27/2011

GAEMS Inc.

10/14/2011

Pokelabo, Inc.

10/11/2011

Appyzoo Inc.

0.3

Seed

9/29/2011

Massive Damage, Inc.

0.3

9/27/2011

Quark Games, Inc.

0.4

9/27/2011

Peak Games

11.5

9/15/2011

Gamerizon Studio Inc.

5.0

Google Ventures; 500 Startups


Apricot Capital, LLC; Real Ventures; Grassfed
Capital LLP
Rembrandt Venture Partners
Earlybird Venture Capital GmbH & Co. KG;
Hummingbird Ventures
iNovia Capital; Vanedge Capital Inc.

9/15/2011

Maysalward

TIMAR Ventures

9/14/2011

Red Robot Labs, Inc.

8.5

9/8/2011

Fingerprint Digital, Inc.

1.4

Seed

9/8/2011

Gorb

8/29/2011
8/27/2011

Ecko Entertainment, Inc.


Punchbox

0.1
14.0

8/24/2011

Beijing Chukong Technology Co.,Ltd

14.0

8/12/2011

Quark Games, Inc.

3.6

8/4/2011

Spaceport.io Inc.

1.0

8/4/2011

6waves Lolapps Inc.

35.0

8/3/2011
7/31/2011
7/31/2011

Airy Labs, Inc.


Doodle Mobile
Tumbleweed Technologies, LLC

1.5
10.0
0.1

Seed
1
-

6/30/2011

TicTacTi LTD

0.5

6/30/2011

Peak Games

4.9

5/31/2011
5/26/2011

Pixonic LLC
Kabam, Inc.

5.0
116.4

2
4

5/25/2011

Peak Games

16.5

www.redcapgroup.com

Sega Sammy Holdings Inc. (TSE:6460)

Designs and develops Android-focused mobile social games

Develops videogames, audio games and casual games in Chile


for mobile platforms
Develops videogames and 3D cinema applications
Develops geo social mobile game
Offers online advertising and mobile games
Offers online gaming platforms for girls, teens and families
Offers portable gaming and entertainment products for
console gamers
Engages in the development and marketing of mobile social
games
Develops mobile learning games for kids for mobile parenting
Develops social mobile phone games based on location
Develops mobile games for iOS, Android, and Kindle devices
Develops social games

Develops mobile and casual games


Develops card, puzzle, strategy, and arcade mobile games and
animations
Benchmark Capital; Shasta Ventures
Mobile gaming company
Reed Elsevier Ventures; THQ Inc., Investment Arm; Develops mobile learning and play games for kids and grownK2 Media, Inc.
ups
Offers an application that brings skill-based wagers to mobile
Betaspring
gaming
Ascend Acquisition Corp. (OTCBB:ASCQ)
Develops mobile games
Steamboat Ventures, LLC; Sequoia Capital China
Develops games for mobile devices
Steamboat Ventures, LLC; Northern Light Venture
Develops mobile games for iOS devices
Capital; Sequoia Capital China
Rembrandt Venture Partners
Develops mobile games for iOS, Android, and Kindle devices
Offers a cross-platform mobile gaming engine for ActionScript
YouWeb
developers
Develops and publishes social and mobile games and
Insight Venture Partners; Nexon Co. Ltd.
applications
Foundation Capital; Google Ventures
Offers social learning games for iPhone, iPad, and Android
KPCB China
Offers mobile social games on android platform
Ascend Acquisition Corp. (OTCBB:ASCQ)
Develop mobile games for iOS and Android platforms
Operates an online platform that enables the monetization of
Kima Ventures
mobile social gaming
Operates as a social gaming company that develops and
Earlybird Venture Capital GmbH & Co. KG
publishes social games
Ventech; Kite Ventures; TA Venture
Develops, publishes, and markets mobile and social games
Canaan Partners
Develops games for social networks
Earlybird Venture Capital GmbH & Co. KG;
Develops and publishes social games
Hummingbird Ventures

Page I 12

Mobile Gaming
Ann. Date

Target/Issuer

Amount
($m)

Round of
Financing

Buyers/Investors
RBC Venture Partners; Relay Ventures; NFQ
Ventures
IDG Ventures; IDG Capital Partners
Summit Partners; TA Associates, Inc. (nka:TA
Associates Management, L.P.)
SoftBank Capital; Outpoint Capital Management;
FLOODGATE; Baseline Ventures

Major Business Focus [Target/Issue]

5/19/2011

Fuse Powered Inc.

2.0

Seed

4/29/2011

Funzio, Inc.

20.1

4/26/2011

Bigpoint GmbH

4/20/2011

Rivet Games, Inc.

4/11/2011

TeePee Games Ltd

3/21/2011
3/10/2011

Z2Live, Inc.
NoiseToys, Inc.

2.5
1.2

2
Seed

3/10/2011

Rovio Entertainment Oy

42.0

2/28/2011

Associate Mobile Ltd

Seed

2/24/2011

Digital Angel Corporation (OTCPK:DIGA)

2.0

Hillair Capital

2/24/2011

ZIO Studios SAS

1.3

2/23/2011

Grey Area Ltd.

2.6

2/8/2011
2/1/2011
1/31/2011

TinyCo, Inc.
Doppelgames Inc.
Ji Ke

18.1
0.1

1
Seed
-

Promotora
Index Ventures; Lifeline Ventures Oy; London
Venture Partners LLP; Initial Capital
Andreessen Horowitz
XG Ventures; TomorrowVentures, LLC
QUALCOMM Incorporated (NasdaqGS:QCOM)

1/20/2011

Kabam, Inc.

30.0

1/7/2011
12/31/2010

Peak Games
Grey Area Ltd.

2.5
-

Seed
Seed

12/31/2010

PlaySpan, Inc.

Millennium Technology Value Partners

12/31/2010

LeftRight Studios, Inc.

0.1

12/30/2010

TapMe, Inc.

1.5

12/16/2010

BLUE LION mobile GmbH

12/15/2010

Pocket Gems, Inc.

5.0

Innovation Works
Hyde Park Angels; Rockfish Brand Ventures; I2A
Fund
KfW Mittelstandsbank, Investment Arm; Xange
Private Equity, S.A.; Bertelsmann Digital Media
Sequoia Capital

11/22/2010

Mo'Minis, Ltd.

4.5

BRM Group; Mitsui & Co. Global Investment Ltd.

11/3/2010

BringIt, Inc.

1.5

11/2/2010

Forth Smart Service Co.,Ltd

0.3

10/21/2010

Feeling Vertigo S.A.

10/5/2010

Viewdle, Inc.

10.0

Anthem Venture Partners; JLA Ventures; RBC


Venture Partners; QUALCOMM Ventures; Best
Buy Capital

Operates as vision company which creates new user


experiences in mobile gaming and others areas

9/29/2010

PlayFirst, Inc.

5.2

Mayfield Fund; Rustic Canyon Partners; Trinity


Ventures; DCM

Offers causal games

9/16/2010

Leti Games Ghana Ltd.

Seed

9/1/2010
8/26/2010

Pokelabo, Inc.
Green Mobile Corporation

12.0
-

DCM; Incubate Fund


CyberAgent Ventures, Inc.

8/20/2010

Kabam, Inc.

Intel Capital

8/19/2010

PlaySpan, Inc.

18.0

Menlo Ventures; Vodafone Ventures; STIC


Investments, Inc; Softbank China & India Holdings;
Novel TMT Ventures Limited

Provides monetization solutions for publishers and developers


of digital media

8/11/2010

ngmoco, LLC

Google Ventures

Develops and builds games for mobile devices and smartphone


gaming platforms

8/3/2010

Ultizen Games Ltd.

8.0

12.0

1.0
3.0
5.5

1
1
-

Japan Asia Investment Co. Ltd ; JAFCO Investment


(Asia Pacific) Ltd
Qiming Weichuang Venture Capital Management
(Shanghai) Company Limited
AddVenture
Atomico Investment Holdings Limited
Notion Capital Partners LLP

Turner Broadcasting System Europe Ltd.


Draper Fisher Jurvetson; Madrona Venture
DCM
Accel Management Co, Inc.; Felicis Ventures;
Atomico Investment Holdings Limited; Atomico
Ventures II
Propeller Seed Accelerator Fund

Canaan Partners; Redpoint Ventures; Intel Capital


Hummingbird Ventures
Lifeline Ventures Oy

Blumberg Capital; Seraph Group; ErGo Media


Capital
Forth Corporation Public Company Limited
(SET:FORTH)
Modena Technologies Capital Partners

Meltwater Foundation

7/31/2010
7/22/2010
7/21/2010

Beijing Downjoy Information Tech


Co., Ltd
Pixonic LLC
Betable Limited
Expedite 5, Inc.

7/8/2010

OpenFeint Inc.

8.0

Intel Capital; The9 Limited (NasdaqGS:NCTY)

6/30/2010
6/23/2010
6/18/2010

Real Dice Inc.


Smart Balloon, Inc.
Social Gaming Network, Inc.

3.0
3.0
2.0

5/14/2010

Booyah, Inc.

20.0

5/12/2010
4/6/2010

Social Gaming Network, Inc.


Beijing Moca World Technology Co., Ltd.

0.2
2.0

Benhamou Global Ventures LLC


Union Square Ventures
TomorrowVentures, LLC
Accel Management Co, Inc.; Kleiner, Perkins,
Caufield & Byers; DAG Ventures, LLC
Novak Biddle Venture Partners
Infinity Venture Partners

3/31/2010

OpenFeint Inc.

The9 Limited (NasdaqGS:NCTY)

1/25/2010

Drimmi LLC

Mangrove Capital Partners; ABRT Venture Fund

7/31/2010

Publishes digital mobile games


Offers social and mobile games
Develops and provides online games for media companies and
publishers
Develops and publishes Web, social, and mobile games
Operates a platform for finding and playing smart phone,
social, and flash games
Creates free-to-play social games for mobile devices
Develops mobile games
Develops and franchises titles for various mobile platforms
Develops mobile phone games
Offers consumer applications and mobile games for tablets,
smartphones, and other mobile devices
Animation, gaming, and transmedia studio
Designing and building mobile games
Develops and operates free-to-play games for mobile devices
Develops social games and interactive storytelling
Operates independent online mobile application store
Develops multiplayer games on mobile, online and social
networks
Social gaming company
Designs and builds mobile games
Provides monetization solutions for publishers and developers
of digital media, online games and others
Provides mobile applications and games
Develops and markets games for mobile phones, computers,
and videogame consoles
Develops software applications for mobile phones
Develops free-to-play social games for mobile devices
Provides solutions for the creation, porting, and publishing of
mobile games and entertainment applications
Provides a virtual currency casino/arcade for game publishers,
brands, and media Websites
Develops and manufactures online top-up machines for service
providers
Offers mobile, social and custom games

Develops games for mobile phones, smart phones and various


platforms
Develops and markets mobile social games
Develops games for mobile phones
Develops multiplayer games on mobile, online and social
networks

Develops games for gaming companies


Owns and operates a gaming portal that offers mobile phone
video games
Develops, publishes and markets mobile and social games
Offers real-money gambling and gaming platform
Develops social network games and mobile applications
Provides mobile social gaming network for iPhone, iPad, and
Android devices
Provides cross-platform solutions
Operates a social mobile gaming network for mobile gamers
Develops and publishes social mobile games
Develops location-based social and mobile games
Develops and publishes social mobile games
Develops massively multiplayer online mobile games
Provides mobile social gaming network for iPhone, iPad, and
Android devices
Develops social, browser and mobile games

Source: Capital IQ (in $ millions)

www.redcapgroup.com

Page I 13

Mobile Gaming

Redwood Capital Group is an investment banking firm serving the technology,


communications and media & business services industries. The firm focuses on
mergers & acquisitions, debt and equity financings, and financial advisory
services for its clients worldwide
New York

Los Angeles

885 Third Avenue, 25th Floor New


York, NY 10022

1100 Glendon Avenue, Suite 905


LA, CA 90024

Tel: +1 212 508 7100

Tel: +1 310 696 4001

Fax: +1 212 508 7102

Fax: +1 310 507 0263

Baltimore

Geneva

503 Albemarle Street, Baltimore, MD


21202

17 rue du Cendrier, 1202 Geneva


Switzerland

Tel: +1 410 775 5060

Tel: +41 (22) 518 07 83


Fax: +41 (22) 839 72 49

Milan (Strategic Alliance)

London (Joint Venture)

Livolsi & Partners Largo Augusto, 3


20122 Milan Italy

42 Brook Street, London W1K 5DB


United Kingdom

Tel: +39 (02) 777 991

Tel: +44 20 7112 7777

Fax: +39 (02) 777 993 90

Fax: +44 20 7900 2329

Paris (Joint Venture)

Munich (Joint Venture)

8 rue Halvy, 75009 Paris France

Theatinerstr. 42, 80333 Mnchen


Germany

Tel: +33 1 58 18 39 00
Fax: +33 1 53 43 09 76

Tel: +49 89 1490 265-25


Fax: +49 89 1490 265-13

www.redcapgroup.com

For Information:
James Holzer

Vikram Chandrasekaran

Partner, Redwood Capital Group

Vice President, Redwood Capital Group

jholzer@redcapgroup.com

vchandrasekaran@redcapgroup.com

212.508.7103

212.508.7106

Copyright 2013 Redwood Capital Group LLC. This report is published solely for informational
purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy
any security. The information herein is based on sources we believe to be reliable but is
not guaranteed by us and we assume no liability for its use. Any opinions expressed herein
are statements of our judgment on this date and are subject to change without notice.
www.redcapgroup.com

Page I 14

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