Viacom International, Inc. et al v. Youtube, Inc. et al
Filing
219
DECLARATION of William M. Hohengarten (Part Nine) Ex. 287 - Part 3 in Support re: 176 MOTION for Partial Summary Judgment /Viacom's Notice of Motion for Partial Summary Judgment on Liability and Inapplicability of the Digital Millennium Copyright Act Safe Harbor Defense.. Document filed by Country Music Television, Inc., Paramount Pictures Corporation, Viacom International, Inc., Black Entertainment Television, LLC, Comedy Partners. (Attachments: # 1 Exhibit 287 - Part 4, # 2 Exhibit 287 - Part 5, # 3 Exhibit 287 - Part 6, # 4 Exhibit 287 - Part 8, # 5 Exhibit 287 - Part 8, # 6 Exhibit 288, # 7 Exhibit 289, # 8 Exhibit 290, # 9 Exhibit 291, # 10 Exhibit 292, # 11 Exhibit 293, # 12 Exhibit 294, # 13 Exhibit 295, # 14 Exhibit 296, # 15 Exhibit 297, # 16 Exhibit 298)(Kohlmann, Susan)
.~
From: Sent: To:
Cc:
:R,Amnt
Monday, October 9, 2006 11 :07 AM
Duca Ston
Scrougb, Chrs
Gree
i James .
Subjec:
Attach:
Storm
Boa Maals
1: .:.
Maal for Gren Boad.pdf
Attched plase lind the Green Board Materials In pdf format.
Thanksl
Amrft
AmiitRåo
Crdi SuMo TeçlnoJo Croup
65 Callornl St 33id Flcor
Sail Frane. CA 9408
atrao@eod'iIs.cm
...:_.::::
".:
f.;.
1 :'
Ii.:
l-. .'
'. ;
HIGHLY CONFIDENTIAL
CSSU 003560
D¡TE: S 't ,Dl1 ¡ 1. E~IBlT ¿
DEPONENT: S~CV i Wi V
CASE: Viacom, et aI., v. YouTube, et aI., The Football Association Premier League, et aI., v. YouTube, et aI.,
'Case Nos. 07-CV-2203 and 07-CV-3582
'.'
:,
, A. Ignacio Howard, CSR, RPR, CCRR, CLR, No. 9830
::
o z :I
()
oo
:i r
è5
CREDIT suiss~
m
z
o
$!
i-
COFIDENTIA
Project Snowmass
Presentation to Board of Directors of Green
October 9, 2006
PRELIMINARY I SUBJECT TO FURTHER REVIEW
AND EVALUATION
AS SPEO!CYCONTPfTE BY A
WRmNJ\RES WlT CROIT suis
'l MA'ÆLS MAY NOT ee us OR REUse UPO FO Al PURPse 01 THA
t1
,0
C c/ o
~ ..
.. ...-., .. ..-;....,¡:. ....
,"- :-.t.....~.... ...~.. ," '.
:'.: ~ ~" .
,........ . .....,~".:: . .... .. .1:_~ .... .......~.. '. ..
.... . " . of... ,. .',. . ~ ...... _..~ ...... ...... ..
., ~"':-"""'-" .'.. -. ...... . ." '. '. ..
~:'.: "
.,; ....'
. ~..,-!
, -(
:i Q :i r-
CONFIDENTIL
o z
('
SummarY of Key Trans.action Terms
Based on Draft Merger Agreement as of October 6, ~006
:: o m
Summary of Terms
:: ;i r
~ $1.65 billon of Green Class A common
($MJ
z
¡ SUmmary of Implied Tra~saction Statjs~ics..
stock in exchange for all shares, options, warrants and other equity interests'of Yellow
Implied l Green
Yellow : Stree"~ , T xn Statistics l Stalisli cs (~I
· Number of shares based on Green's 30
day average closing price two days prior to closing
. NatCas
Fully-DUuad Agregate Value
(Mi,~
Fully.Dlluted EquIty Value
· Shares to be registered via S-3 pqstclosing
." One year indemnification period (except
Revenye CY2007E
for certain representations and warrnties)
· Liabilty for breaches generally limited
to 12.5% of the aggregate
~
CY00S
CY2007E CY2008E
$150
29
$87
144
. 12.3)(
8.7
1 9 .6 )( 15.S
consideration
· Escrow of 12.5% of
~4)
the aggregate
CY2007E CY200Se
$3
78
31.3)(
consideration
25.2
(1) PerYellmanagme.
(2) Yelow projectons pe Green Managemen
('
." Closing anticipated in 30 to 45 days
(3) Base on Gren sll Pr of $420.5 8a of Octer 6, 206. Projio ba on Thmas WeIsel anlys rean dated Se 14, 20 fo200 an ieES COnss esti for2008.
(4) Based on 35% fa rate
~ c o
Q
~ ~
1
~. ,
"-:'. i'.
'. ~'. .
~ Summary of Financial Analyses of Yellow :!
Disçounted Cash
Flow Analysis
:: :i ~
Q CONFDENTAl
m
Selected
CQ/npêlri¡es
o
Analysis
$3,404
~
Equlty Value ($MM)
$3,500
$3,000 $2,583
$2,500
$2.000
$2,094
--__~ __w_ ~_ _ ____ _ ____ _ _ _ _ ___
---------_....
$1,500
Aggregate Consideration:
$1,650MM
$1,00
$1,193
$500
~
$0
o o
SUISSE
~ Sourc Base on Yellw flanc1al data per Gmen manat pro fora for tron.
~) Ø
CREDIT
w
2
. . ".,...... .' ". ";" . "0: .":' .~,:.:.:. .'~;i.
..~'.::;( .
:i
z
stas:
Priate
San Mate, CA
Headq uart:
o z :D o m
Yiiow Is a plce for pepleto ii, coment on, and vlvl 0l.
()
~ i-~
CONFIDENTIAL
Yellow Company Overview
=!
): iFounded:
2005
" Upload ù1g and she Vld6QS woidwld
Yelw odlnaay at 88 a pe vide sh sece an ha gron Into en entertnment deslOn Wllf peple wachin more than ~18C mllon
(
simir InÆS
vlde () tl sit dafy. Yellow enab pele 10:
" Bro mllOl of orrni vl UpIdvd by i;nlty ITIi
" FI, Joi an crate \/eo groull to cone wlth pele Who hae
.. Cus th eiilnc by suriing to membervld, saving
faorte an cill playlst
" !nla Yelow vf08 0l wesi usIng \/eo embe or APs
.. Make vios publ or pivae ~ us ca el to broast lIelr vlcØO puUcly or sl tIlim prly WI frlends and famlly U¡ uploa
Round
Datê
($MM)
($MM)
NA NA
Amunt Polt-ney Rased V.ltioll
Company Slage
Septemer 20, 2006 . Announcd C1gular.spo prmoUon to discover unsgn bani and musJo
September 18, 2006 . Anl1ncd VIeo dIbuton and reenue
iinØllp wf Warer MlIc Grop.
1
Round Typø 1st
11105
$3.5
ShIppin Proct
ShIpping Prouct
2
2nd
4106
8.0
AugUl 22, 2006 - Uneied no adveitlng conoelsllpatoiyVkeo
Ats (PVA)8nd Brand Chanlsto ØICOge dialoue betw
Invesor Include: Seqela Capiiai
co1l and marktet. Yello name their li Brand Chnn pa,
Werr Brathei Recrds, and deslgntes 8 channal fo Pais Hiln to praOù her deb albm ParrS.
June 27, 2006 . Anollce a elraleglo parerhip lIat WUL cobine NBC's
prramming wllh YelloW' audIence
May 10, 2006 -launced a sece uiiit aUow; peple to upload vldeo
dl fi thr moile pho an POAs to the Yelow Web si
(' (I (I c:
Soorc YentureSoure and YellOw corpra wobslte.
o o
~ (l ~
3
.f..._...
'.~ ;-:.
..~' ;....
. ';'~'.;~
.,
:: ø ::
CONFIDENTIAL
!:
:!
o z
("
Yellow Company Overview (continued)
:!
~ z
~ r-
Tota
O.7MM
Unique Users
16.1MM
3
Total
10MM
Pages
661MM
1
VIewed
i
Streams
NA
Initiated by
US Usørs
649MM .
2
Average MInutes
Per
Vlltor
11.6 33.7
min
min
1
;
... _. ..."
l:.:--mbn r,n\\.. v,:.;, ü : i.pk'.i:iiig
..
Com Meia Malr
(1) Rank wltl anUii video $paÇ8 based on July 206 metr pe
.. Current number of videos viewed dally: 180MM
..
.., r---------...
~ Currant number of video uploaded dally: 100,000
.. Currnt number of new dally registrtions: 255,00
," _....
, ""IB 1i ,T
("
en en
Source Yellow management.
.. ---' ..... ..ti ~ _..ii....... '~~. .. Ii '~" . ;(~n6 .....:.:. :
c:
.Il**""t,. ¡'~~' _.. 'I ...-- ,...... -.;
("
o
g
"..~. '.
~
' .... \, '''ñ'I'.'.~~/I' -_._0 t, ~í ~ ilimii I i:---------" ~ ll~ (dlt ii , ,
ll
;.~;.,:~.;_."i__.h~.si.~=~..~.._ti1,;
" ..,.", . ~.,
Vki:-G (r':I~lir. r.t;i:ir.:ictì
4
.,
~... ~ .-...,....... ". ~.. ..#......
:.. .~. ...
.. ::.;~ ~ ~
- -:::::~;'" .... ~ .. .. .. ... -.-. .
.' .~
(
::
~
CONFIDENTIL
r(, ("
z ::
_I 5 rr uft
oct .05 .. oct '06 CllGR: 18%
g o m
:!
Yellow Site Metrics
174,
~ r-
169 1,29D 2,1
Oct-D5 Nov-O 0e5,
664% 96%
117
..:i "d
oct 105" oct '06 CMGR: 46%
1
3
('
Monthly
t,/ C
00t-05
Nov-oS
141%
S6%
Dec-5
Jar¡06
126%
Feb-06
15%
C
Growt
Rate
Mar-o
õ!%
Apr.06
35%
May.6
15%
Jun. 28%
JuI-06
23%
W
Q
Q
.
Aug-6
36%
Sep-6.
7%
Oct-oS
39%
en en
U1
llø: Yei m:rt
5
.._.-.
.-", .... - ~. - -. .."
::.: -; -~_.
:: ø CONFIEN
:t
!(
z
:i ti m
g Benchmarking User Growth
~
51.4
48.0
62.
545
21.8 21.
111 .~., ~:a==1 ¡~ ~ 8.3 8. 9,5 ~ ... 105 :: 6. ~ ...
_..jF- ,6
1" A 12.1 12.9 12 14.1 13.8 14.41 1 Yellow
li r- 1M ( li.(iM i -Il ---~:l .1i~--.¡ ¡ i l:e f!-
Aug- Se.( Oct.05 1'v-05 Ceç.5 Jano0 Fe!6 Mi-oa Apr-Oe Mi-06 Jun .ii-oo
iii
So Co Medi Me
~ c oI C
CREDITSUISS~
6
m -.
:!
. " ....., ~..-..
--~.. '.'-r..'.. ~ ~...
~.,?";":
:i
:r
c5
CONFIDENTL
~
o o z
Online Video Market Forecasts
z
m
6
2005.2010
CAGR
~ r79.$%
Adversln 40,S'f
2005
2006
2007 2008
· SubsIptn. Advertsing II A la Carte
2001-2010
CAGR
.. 7 ,.0'7"
2.005 .20'\ 0 CAGR~ 50%
36.8%
~900.1 $1,180.0
4'1%
62.6% 42.5%
66.%
n/ C
2005
2006
(I
c o
2007 2008 2009
· TV. Movies I! New. User-ereate. SpoTt _ Oter
69.%
OJ OJ
B c.
Soii io, Miol2l
',. .~.. ... ",~...'.. ~"4 .'"....~, ~.......-. '.. ... ......., .... ~
....-:..-... '.;.-::--'.' .',
.; :. . .;. ~.; .
. ;..
. :'.~:.~:' :. .
..... .. .---.. . ~" ......... ,..,.
ø :i
:i
CONFIDENTIL
!:
n o z :! o m
Yellow Transaction Rationale and Positioning
~ Yellow Is one of the leading and fastest growIng Web 2.0 companies
· Yellow has exhibited tremendous growt and has establIshed a loyal global following
· There are very few intemet companies exhibitIng this tye of growt and trction wih users
Z ): i-
::
.. Enables Green to catapult to the leader Ln online Video · On!ine vieo has been a top priorit for Green and stand alone effort are In the early stages of market accptance · Opportnit to extend monetzation sldlls Into a large, high growt market · YeIlow has consl~tently extended its leadership POItion over Gren and all other online players In 2006
.. Accelerates Green's push Into stickfercommunlty-orlented content
.. Revenue and cost synergies are expected to drIve increasIng profits · Green can Immediately increase usage of Yellow as part of Its netork
· Green ca better monetize Yellow's traffc and viewlng with Its technlogy and Its relationships wi advertsers, content owners and publishers
· Green can realize cost savIngs in ad serving, bandwidth and sales · Yellow can drive additional monetlzble traffc through Green's search engine (not currently included In ñnanclal model)
.. Issues for Consideration:
· New
and improving busines model
· large acqulslton for an early stge copany · Retention issues · Uncertain legal issues
· Potential EPS dilution In the short term
(' en (f
'f:
c
.~
o (. U1
o
CREDITSUISS~
8
m
,..#..... ...,'._..
...... ...... ......
.:., .
J:..,' .
-. -. . ~... .- . .-. ...... -
,0"':.
c5
:: :: ~
CONFIDENTIAL
:!
Description 12007E Traffic Assumptions
CPM
(" o z
2011ETramc Assumptions .
.. 9$OMM avg. vid view
per da by 2011e
Key Yellow Revenue Assumptions
on Yell
.. G4GR of 24%
c m
K~y Variable
Unrronelized
Video Traffc
i-
§ i:
in '/i:i¡:: Ji.¡.~~:,¡:. .1:11'1; mil!i' : ,,1111 wesite ' i l'Shh.1 h . hli, 'ILl (1'1,1...\ ( ,,;
, ¡H'i .i;:...i~.. j...;'ill.....¡.I.1 '''i .. Cuentl !hre ere-180MM videos vlewd per day
'. .
::. r:1,Vj~~~'~ltaw..QçI'.'i¡: .. Asumes 400MM avg. vide vfWB per dey In 2007e
!,!i.:~!i;;n:~¡ .II:!I' ~W,hJ~.d:.;.:lt i.:.: . 13% ofvlos vfwe on parterwebSle (I.e.. Myce.
It.,.. , 'q"
'. ~~: :'i.i q ..:,:: ,; .~':, ',' · 90% of vi vieed ar major geoiali maii
.. 67SN annal iie vfws
by 20116 " CAGRof24%
----.-.li"--"-'f...._.~aa)'"~i__'_H._..l...._..'__I..."_.____._..--_._-_..___''"'...._1_.....__......_______.._..--..._
" Page views on th ares of th Yellow wesIte:
l~:.i'!'..(¡¡ a ¡i~-i-i~ .t: ,.' . !:;II¡:' : .1: "' i:.... l;l:,1 \t' .1.
i!i.i.irii:~'.!.:iil:i.:~:iii:,r!,i::ii', :!(.
ii ~3~ge '¡v~aw.. :li,i
· Sea Page: --6% oftolal page vi
. Wat Page: oi5% of totl page view
.1 '"+;::....,~~ lÇf,. ~"!..: ...:~
· Home Pag -10% of tolaf page Vi
.. Asumes 1:1 Vldei Strea to Watc Page ra
.. Impli -2808N anl page vies In 2l07E
~:t ~:n:!.~~:':~fl .';~lfl:ll!~::~!"f !:j!1
-_.._.-.il..__I...._.._.__...._-"'-_.....__._..___H4..__..__"""_.~___H..fM~_~"'.....___I_f___.._
;,! t:j~~:~ :!i ~t.ti:: ~t;'t!i ~;I!i::i 't !:Ii!
,.' J . ',:,:;". .'::' . ~~'!::.;¡;.:,,:.::, ';' " 60% of tol video stea on Yettow webeaie .Premum .. 60% of pim cont " $10 CPM rn 20D7e " 63BN premlwn
::: d.~::.i.~:"~.. .i'ib:l~ .1'; .,~il .. MS 10'" of premium cotent provleii allow Yello to moritlza provldere aDow YeUo to " Grow tfl 513 by \i vt wi!
!lf~i~i;i~::l.¡.¡,I~r..~:Ji!i IlifliiÍ'I~' 'r;,i: lbr cotenlln 2007E . monetize thcolet 20116 not &e vldeo ad$ ì'j:'~:li: :', 'fi!¡l,gin: . '.' . '. : · ·5050 reenue share on adrting Inventor for Yelw advei lnvø10 .. GOON In 2011 e i,,:r'. '\ ~ëfm' ~ :.Irt.," . ,,~ 75% se throgh liUt (afer 10% allc:llon . · 79% selthlOh OR In 2OO7 '1r~'.'ir.i~ . '" J',l:i' :1.''1''elensBS.at tc) .. "'BN an vleo ad i 1, I',, n.hI!,! i I,ll.ln. . '.1. .."...... ..""..I..~.. omge e sf sod
~.iiii"i.¡.' iS .. -lBN Videa ad steam sod In 2007E CAG8Rffof ""'"
,uii.i..." ..t. I .. VP74
,'.1.'.1",' .'.',
--_.....__...._-,...........__.._.-.."._-..._.......__.._._..__._.....---_..._....-..._...._---_..._.._,.-----.._----_.... -10% of Non-Pum
.. 40% o( tota vIdeo s!lms on Yel webs an:i Non.Prwn
.. Non-remium Conlent 1$ use gerirateci ..klll and Is segmente
betwen hIgh vaue conte and regular content
.. -2.% of NonPremIum cotent can be maetld us VldD ael In
cont ca be moneti
us vlao Bds by 2011l:
" ClM of $3
In 2007E
.. 45BN srusl nOl
prum vks
vl wla not see
.. -8.5BN vide ad atr sol by20115
.. Grcwng to $5 by 2111E
20075
· sei through snd reenue share asumpt consstent with
premlum vido asumplton
"CAGRof78%
vieo ads In 20015 .. 100BN In 20115
· NOn-taeted run of sIte ads seied on serch and Wat Pages
· 254BN paSS vie in 20075
-_._-.__.__....._._.'-1_'_.__..,....._
. -900MM vi ad stms sod in 2007E:
· e03BN pevlby 20115 . CPM of $0.14
"CAGRof24%
("
" Sponsored edvertlsg on Yellows homB pae ~.e'l Pell HUron
en C/
spore by Foxs Pin erak)
.. 67SN page VI by 20115
. Assum 100% nell throgh on adveing Inventory
.. CARof24%
.. CPM of $Sin 207e
gre to $5 by 2011 e
c o
. 28BN page views In 20075
o w
~
9
;,
. ~ .. ~"
:.:.: ~'.
:: :i ~
ei
CONFiDENIA
.¡
:!
o o z
Yellow Long-Term Financial Projections
FinanciaJs based on Green management (pro forma for trnsaction)
Yellow Calenclar Year Financial Performance '07-'11
m z
o
2007E 2008E 2009E 2010E 2011E CAGR
Premium Video
$ i$51
($MM) ,
101% 102% 24% 41% 85%
$168
9
High Value Non-Prmium Video Run of Site Ads
Sponsore Ads
3 35
$565 35
Gross Revenue
$379
Net Revenue (1)
§§ $174 $640
~
iJ
$950
$681
53
$342 20 67
$835 43
~
77
~ $1,27
$902
33%
84
$150
$299
%
Growt
NM
$477
60".t
S9%
57% 65%
EBITOA
43%
%Mln
I % MargIn . 35% 40?ñ 48% 60% 50% _ J Income Taxes .1 ~ Z§ .1 158 % Tax Rate 35% 35% 35% . 35% 36% NOPAT 34 78 140 221 293 71% % MargIn 23% 26% 29% 33% 33%
'Surc: Yellow financial ala per Gren management pro orm r n.
58 33 LpesatiD&A 15 ~ 31 oM 45 71% : ng Income 52 120 215 340 451 O er
% Growt
45
fj
ÑM
12
48
144 246
52 8õ
æ%
374
55
496
(1) Net of parter revenUe share expense, ~;:~I'!I/:~f~i'~;;:Q':t::¡ ., IllleitcÇG,..eltnl
U"tf."~ ll' -llllll"i.I'1:IJ'lJ 'I', '.)l1'hl . '$MMJ'
t1
en
Revenue $66
% YIYGrwt
c: Q Q
CREDIT Suiss~
E6JTOA 38 M. 43
SOI Hlslcrical fillngaand an lln:.
189%
~ -.
10
--" ..~....": ........
. '.;'" .', $. r . ~
.1 '''",'',..:.¡ . '.(.. .i.. .......o.., .'... ~ ,... ...'
. 'f:".
" :.r: ::~
-'C-'.,::.'.
~ CONFIDENTAL
:i
!(
~ Yellow DCF Analysis
!!
i-
o :: ):
m z
DlscountRate: _~
Eqll Vale
(GMM)
$3,50
$3,000
$3,404
$.
$2.00
$1.50 $1,00
Aggregate ConsIderation:
$1,650MM
$50
$0 9.OX
11.0x 13.0x
9.0x
11.OX 13.0x
9.0x
H.Ox
13.OX
en en
("
Sourc: Based on Veirow flandaJ dala par Gree manaement pro forma for lransot
o =
c
~
¡:
11
....... .......,.
" ~ .r.."J.A..... . .~. .~_........:: 'r . '" .
. -;=~- .~:;.:~. ':".:' ..;\ ....;
Gi
:: :i
CONFIDENTIL
("
!:
m
is
~ "
Sensitivity based on revenue growth and EBITDA margin
DCF Sensitivity on Financial Performance
:: :i i-
Z
CY07 - CY11 CAGR:
40.0% I
$1,267
$1,643
$1,972
$2,962
45.0% I
1,430
1,85
2,252
2,224
3,33
(2,702 J
52.9% 1
1,734
4,066
55.0% I
1,754
2,273
2,483
2,728 2,980
4,090
60.0% I
1,917
Note: Based on a 225% ál$count TB and a 11,Qx leonina! EBfTDA multle,
4,466
c: = Denoes base cae
("
c:
o o o
Sl U
CREDIT SUISS~
4S
38
189%
ë:
So til8lill fiing;æid anaya llaro.
12
..... ~ . 'wl' ". '...,..
. . ....~ .' .". ..., ..
. . , .... ..... .."I .. .... .; 4~ 0'- .....~...a.n:. ..... .....: ... ~ 'w".. .. .~. .
. ....~:. ~.~ : . .v. . .. .
Q CONFIDENTIAL.
:i :i
!(
r-
):
Z -l
m
o
:!
~ Selected Companies Analysis
$239
~.47
3259
tfeer.: I' .;'" . 01" ,. . : ¡ ,.. :: h.4 !~T"".i LI... . j. ¡
. I '.1
;.
(3~!
(41~1
I.''') :zo8 3.3'"
l4i.40
37.107
WKkdil'i
$6,3
2S l3.l1l
37;J77 13.847
S3
Øn SgnttindCsuzrs,"1 ~ Wod (De) s:a.e RoIN(.. ~¡ (D..) 1134
(3~) 3a
' S2
2,1fQ 1,617 LLL
CN HO\ (0..) Ki(Oo.
aM
2f 11
8_ro.l
æ.91
(O) S7~ (37.l%) ~
(4%) ~ ~l%l
12.
.sn: lVD~'lI~,".*,we"ill~
(SMJ
~.. i;! ::i
(tY'-"'-"~lO_doll_l_otV_--"Yl_"" ~'*''''''_I_",ci_.."".2Or.~_
¡'mi1iå
C'ae 144 13.. 1ao $1.865. $2,613 I JI $2199
I ~:OÑJ1IÅif:sÁ"¡lsos:;~li~.~;i!i~~t~I;$~æo\'~.D!;tl~ .' ~~~)~~~~)M~I j~.aa!ìß~~~~;
CY07e ~ 35.0x - 45Ox $1.93 _ $1.5 I $1,06
em06! 78 22.0 - 27.0 $1.709. $2096 I $1.959
I
en en
('
(1) Asll Yeß nodeof$1.oP8Yøl~.
(2 Velaw pr ii Gæ Maii pi lo fo t'Of
l
c:
Implied equity reference range of approximately $1.2BN to $2.6BN based on selected
company analysis
13
o Q ~ ~
.'
.~ '~" ":."' . .
.,...
." ,. .. t' ...." '..."....; .'",:.,.
. - . .._,;,,,,,,..,,.~..
:i ø :i
CONFIDENTI
!(
:!
. ',,', l$M)
C o' z
Selected Internet Transactions
m
o
~ i-
Date Target Acquiror Vallie Value LTM NTM
0810906 Atm Enlertnmenf
~
Equity Ag(J. ~
04/241Ó6 Xf
V1com
NBC Universal
Vlcom
102
'. .. '. $'o. I l .! ~ i 20
60
36,9x
22.6X
NA
NA NA
030616 MUage 01(17(06 dMare Brocssllng(3)
NA NA
NA NA
0912/05 Sky (2
Gre
eSy
Ne News
095 IGN (1)
071815 Intermix (I)
03(21/05 Ask Jeeves
Corp .
1,2El 4,040
Cop
. NM
21.9x
NA
65
41.9x
571 1,858 50 410
NA NA
031f05 Flick
021615 About.om 11114/04 MarklWstch Inc
InterACUeCorp Yahoo New York 11mes
31A x 15,ax
NA 23.OX
09141 MusioMa
0312610 Kelkoo 07/08 PayPai
Yahool Yahool
1ElO
Do Jones & Co
$200 102 665 1.238 4,040 650 575 .1,9G6 60 410 512
45
160 556
30.x
52.9x
NA
23.1x
NA
eBa
1,46
:': ~
576 1.532
37.1x
NM
22.2
54.9x
Medlai
Mean
.' ... : .. ¡.... .. . " ....: "$' eX' ,.. 2t.i .
.. :: .:: ,.:. " ~ ::~: ):' ;:,:;:;;:. .L ; 36~iC : ~,:¡.:~~x ;'
;':'$1.6S0'¡i~¡': $~~l'i!r.ç:,' ~;:¡~::' :i..ÑNÌ:':::.: :-"2~Mx .
Y~low
Gree, ":,','; '..
....a. .........
NetÐ:lnoUd fer lnfll pui
So: Analst l'rc repo, sec Ilil and pr reeæ
(1) L TM caculat ai 0( JUl 2005.
(2) Base Ql æilmaled CYs revenue Of $6M an CY reveues of $200M. lneudes $1.BN In cotint 'pymets (3) Tnicln vaue base on $102M cash lnnsclon vaue lind Inludes $1. f BN In cotrllnt paymls
~ c o
o ~
CREDlTSUISS~
14
ùf
.; ...~: "..
"., .
..?'. ~~. .
:: ::
è5
CONFIDENT
o z :I
('
!:
Green Potential Pro Forma EPS Impact
o z :: ~
m
r-
.¡
*; llOi liOf ni 11. Ilti in or cen PW' lIiillllnanra V1Rbie;ffoiieu i.motl 4Ij: aqUl\y -.peon
eicri -- pi prce tn~ dei.cm an am_ oflnti.. te ohlinl and ot nOlH~on II8It
(1) Yeu pi perGI' manant prfC folin. Asum S1MMIlå $3 Cf~ Íl In 20 an 20 RIc:ly.
(2 Sa_en Grn Cl A
Gren im!ec1 baci Thoma Weiaiiys/8 Æpo dated Sell 14,iø8.lI ll collfo 2J7 end 2008. ~y. como _ cfo I"cf$4.50esofOCCl6,Zl
(3) Baci Gr 1a Ul of 29 2%
(4) Baa
on GÆ CI Ac:mcn likoUltand;ol30AMM fn: Giø 1¡) farthø peod lleå .lne30, 2005,Snd o¡i8Cedlø
fr Gren 1¡) roUl. prisniJull 30.20.
rn c o
£
o
CREDlTSUISS~
15
~
.,'ò'.
. ~.'~ .r .-:
.r~
~~,
co
~
¡.;
~'
.CJ ~
ro
o
~
§ .CJ c
¡¡
'0
Ü
CU
E :J
Q)
"t
..
( .)C
(1
b
~
en
8
-lieJ n
en
§
I
HIGHLY CONFIDENTIAL
l
Q.
(/ !: o
~
-: :
l.'
Ü
CSSU 003577
j': i
,.
;.
:'.
è5
:r :r
CONFIDENTI
~
n o z
Discounted Cash Flow Analysis Detail
Income statemnt
!!
o m
i, ,
. ~ ~ ~ i:
z
~ Røvnue an margn asspt:
· 57% CAGR from 2007&2011e
$!
i-
Yc:low Projections CAGR
CY2007E CY2008E CY2009E CY2010E CY2011E 07E. 11E
n-emlìYlJ
!o50%
· 35 operallg margin In 2007E rllng
by2Q11e
Tex rate of 35%
Cah
Revnue
$16'0
,,~
.
00"
$29 em
$477
$681
4S
$39 57% 3S
Flow:
EB1TOA
"~r¡
46
62
:115
469G
67
48
120
144
sa
. 1m
35%
246
374-
,. Asme O&A ex equ 10% of sa
In 207E decln to 6% by 1I1n year
EBlT
" flrg
S6 .1 SS
SS
1M)
TalEfcl
TMlRs
34
24
8%
40 ái
~
1m :1
~ 34 ~
85
45
49 ~51 65% 4 71%
.1
,. Ca equal to D&ex
(201'E)
~ Ases ne Vlrkng capll do not h8 l!
mein
NOPAT
78
34
5%
22
29 71%
s"
Impat on fr ca fl
l'us; Depcltion & AmorOl
Les Çaia Exllum
Unlecl Fl6e eu Flow
$140
80%
" GIoi;h
" IJln
15 1'%
$3 .
12æ
$7
$22
~
G.
iW
31 ~
wi
Discount Rate an Terminal MuWpI..: ~ WACC rang of 20 - 26% (detil In awst) ~ T erlnel ealTOA ex mutlle of ~ - 1 Sx
S8
$3 71% ~ a
Discoiini Rate; 20.0% 22.5% 25,0%
tmpmJ 'perptu Gr Rate
7.8%
lllt:~trm¡vc Prcsnnt Value:is of Dc~cmliêr 31) 2006
Terminal Forward EBITOA 1.1ultiple: . 9.0"., ,11.0" ,13,()x (1,0" 11.0x 1;),Ox 9.0" 11.0x . '13,llx 15.2x 18.6x 22OX 16.2x 18.& 22Ox 15.2 18.6)( 22.0x fmp9d Unreved Ne IncoB MulbplB
10.%
11.6%
10.
12.4% 14.0%
12.6% 14'.8% 16.4%
PVofUnleveiFCF(CY0re-CY10E) $26 $2 $296 $21 $281 $261 $267 $267 $267
PVofTeiIValue(CY2011E&8end) U2 ga ~ .i im ~ ~ ~ ~
I~led Agr~gate Value $2,446 $21327 $3,40 $2,2 $2703 $3,144 $2,095 $2.50 $28
("
I Imlied Eqit Value $2447 $2,926 $3,40 $2262 $2702 $3,143 $2,004 $2,601 $27 I
SO: &se Ql Yel 1lnol da par Grn lIem pr fora1or iia
LØ$ Net Debt/ieash) ttl .1.1.1 .1.1.1 .: 1 J.
Ch
C/
C
(1) Bad OI Yelmanaenl dala as of Søplbt19. 20.
o o ~
CREDlT suiss~
17
.. ':-~""r-.
. '~::.'."";;.::'.
.....:.,...;.
::.:. ,"'
..':,.¡.
e5
:: ::
CONFIDENTIAL
~ (' o z
Weighted Average Cost of Capital Calculation
:!
m
z
o
r-
~
Re6lil (OK Iillii) (Ol 1 f 34 CNerNelrl(Oac.) 985
MoWcia (Ol $3.9
anUn Cdtmt fndCSJD¥mfr SØNleo!
IllG io,l 26.91
Kn(D) 2117
iin§W'Øß¡'."WÖ@"''Aft,øam'MM
CSofEqalb
DIscount Rate:
~ Asumes WACC range of 20 - 25% ~ Sele~ copaies have weght averae co of c;plta of 14% - 19%
.. Baed on discIons with Crit &.se's Prite
Placments Grup, late st venlLre caplla firm
N..i.nilV Bolo or So Co_ (i"' R.i"" llla (l."'los ~ !lbi)
R!-F il (I .,
i.1l Rfak PnlJ (R. R,
7.0"
4.77%
~¡
1.l! 1.ll
1,$5 1e.% 1.75 18.% 2.oa 2l7%
1.73%
2.2 22%
0%
(.
l~ %~~t~ ~ 100 ~
(1ra&onllilrU¡ irn;;Q.. Cl6&, ilLi
lok to achieve annuald return ofS0-0% or more when evaluatlng potenllal equity lnvetmen In pr
IPO compaies ¡, Review of Implied pubUo copany WACO basd on
ra of ilustive betas
.. Private company premIum taken Int consIderation
li-. t- n" to_~..ii dO .C \S8...__l'iudo_l.u_i.rli.ialØ.... t41-.._I'_ØlOQ_bo..ileH..læN.
e.so_
~ c: o o ~
CREDITSUISS~
(liquldil, maturity, etc.)
18
0. P._..'l! ..........": h.....
.:~; .'.-"..._-. ',:. .,.o.'f!!''.
T"
0)
~,~ ~:~
:~ . ::..1
;.,
o
ii
.0 t: CO t:
jg
CO
(i
r~.;
( .)" c
~
m
~ -
8
I
~
c.
CD
~w) V V) :f i;
-
U
Ci
ë w
l-
';:
HJGHL V CONFIDENTIAL
;
cSSU003580
,.
:~
(5
:: ::
CONFIDENTIA
o z !!
()
~
Yellow CY06 Historical and Projected Financial Performance
z
m
o
if iRevenue
$286,676
$1,372,199
$6,582,390
$ 1 1 ,0 0 0 ,0 0 0
Cot of Revenues
1,689.086
2.860,095
Gross Margin
.5.776.4
805,940 12%
8.250,000
Margin
G&A S&M R&D
(1,402,410) NM
(1,487,896) NM
258,476 137,104 370,175
461,597 240,161 424,543
62Ó,435 801,675 707,330
2r129,440
1.126,301
Operating Expenses
2,750,000 25% 801.242 1,035,299 913,460 2,750,000
0
765,755
(2,168,165)
Operating Income
(2,614,197)
(1,323,500)
Note: Figures through August
2006 are actuels. September through Decber 31, 2006 basad on Yeirow management forest.
~ c o
to
o g ..
CREDITSUISS~
20
:.. ,,~_ ._.; :,'1. . _ .,"
.. ~ ...~~... ..~
.. .
..
..' C
¡".
t., ¡;;
:..~
;..
:;
.'
(i,
"r:
~
~ o
( -)-
"'
C
ø
.
~
(J
t:
I-UJ
()
I
c:
C.
Q.
CD
t:
U
:J
-
CJ CJ
Ü
o i. ~
l=
..
:"':
t.
¡~
HIGHLY CONFIDENTIAL
CSSU 003582
;,!
:"
C5
:: ::
CONADEN
~
Avr~r;it;o St;lt'(ilic~
~ ." Õ m
Current Price (10/6r06) $420.50
Closing High Pric,, (1/11106) 471,63 Clo$iiig LoVJ Price (3/14105) 174,99
z
$4.ao
410.70
Green Historical. Stock Trading Performance Januaty 3, 2005 through Octber 6. 2006 'hD """i
7,3
5 ,7 6 3
Price
Volume
(OOOs)
~
t,vnragc Volume (0005) 10,071
$500
40"'7
396.
389.69
6.S9 6,60
150,000
6.7t
393.1
.. . '~.,
¡:~~!"J~~,Ob5 i,,¡:i.d~:~~
S,51
140,000 130,000
$450
.'t: k;siill .1' allS mul
:1' '~pipile;
)tb~oI ai~ ui'¡'''I'¡.ill'
:~~ren Tooiw . '.,', ::~
.........~
....._.~.. 1
120,000
$40
""."
.........
110,00
....
$30
~9re1~.1:'!:~:i
1.;~¡~~!-~..:J , ¡ ~.2i...
1 0 0 .0 0
~:a5ilri;.~
.....~'..
9 0 .0 0 0
BO.OOO
..Sde I' .: ". . " .. 'ì"~. po~: .~.. ,0, ,'11
$300
:i~:i~:;~Jr~:¡t:;::) :.::
\
7 0 ,0 0 0
$250
\,
eo.ooo
60,000
40,000 30,000 20,000
10.000
o
3/16105
5126105
818105
$200
$160
("
C/ en
$100 11305
10/18105
12/2915
3/14106
514106
814lO
c: Q
o g. (
SoR: Factet Noe: G Den eamngs llncnt dale.
22
.......... '" #..,.......
. ..;;.::.; ~.:' .
.,.l."~.... .. ...
...¥~.. .,..-:~.:.
... . - .... -...-;. ...~. -~~~
,,;
..., '.,..
'.
:: ê5 :: ~
CONFIDENTIAL
(1
o z ::
.... '. .,.. ...
f\n:i:vsi E::tim,jU;:: fot FY F.;idf;(1 tH.c(-.nbu ~'j.
Summary of Green Analyst Estimates
Price 1.1 GI(I...1~~ rJf.".(::ml' r:riin:it. lll~.~ O,õlc Comi:;iny RecomfTct'dl\ticJl "rilrgc1. nólctl~) .rY¡~10.Gr. lY2ùüi( rvioor.a l:n'lClIiE FY20U7E i:v;.oúUF. ~F'~~'R..;~ 1_ 8er Skl _1m $7if loW.OO BiJ $lI 'I $U4 $11.8 lC1 7.oS 52500 llUl lØ, $13 . "4-"4 $,46$ $M , 60 l,4 . 12 ' lU3 . 7,14l 10l WR HarbllCt 41l00 BUl 15 10,W 10. 12. 4Sl00 Hol VmilO usa 7.05 am v.o . 11.4 ' 8.4 8. ' atlJ PMl1l Ea~Gi 62 7(t 11,14 eM BUl 9.12' l2.. . .,(1. 6,1
Mgll SlloF.naO_
atØ8 'TWollPoi\lS
~ z
:: i: r-
~
51s.
Ø,9O
1l11!
-418
l.l 11.11
MOI co &. CC
Bu
BUl SUY
Buy
:l0I
50000
SI4fO Pao Jo1l1l Ðlil5 JPMon
7,01
-414
:l
6,110
7. in i 'e '9m
W '4
.e,w 19$
ii
V.l 13.0
v.æ lU3
il,oo
lOAst
~.o
7.lo
4,41
~,O%
8A3
5#179
SI1fO flBCCç_ SI G~IIe-Ci
~I,00
ii Bu
6C , 7,
10,2
9,SIl
',418
1m
13,4
lG,lI
14014 .
3m
4.:
3m
40470
e.i
8,5)
&.9.11$. 5.71 . 12.l . 10.5 l3. 10. . i:is
1~17 t410
17S
lIMl Olpo l caWoi_lo S
Bu Bu
2:Ul~
7.135
5400 52oo
6,8
8.078
US IUS
~,e 11041
811i1 Il eo- ROI
st Bu
Bui
Boy Buy
Ml'
7,2'1
11,~
1CM
Ilwt Mo~
lI W1 il.
ooOI
-so
7.c
100
9.&
7.00
9,iß '
4,272 .
10.1 . 1SJ
100 14.10
lUl .
~
l~ o,
1~
ll
-4
8A 8,8 , 6.8
9, 12
7,2
aM It to. .
19.3
12.7l .
Undor
7.'l
Il!
14,
8/1/3 C3&~ 7 1 0 FIl_~
Buy
71Z10 JI SOau_
Bii
7%75
71210 Ai ll
71Z1O ow &COIl
Il
7.3
12,2
l,
1~17 l27.
.,9
4,31
11124
Stllllk Sl oy
1Q.
6,1
SII Bu Bu
17.8
6,11
~1Z1O 'nv_1s
7.m
7/)
11)
9,1
10,4
10,1
9,810
71W lA 1l1J 7 12 __os 7=S Moil~
st
Bu
50.00
~
LQ,I
3,18 '
sm'
e,
4,c
4A5
l0A IU M4 13. m I3MI IUS OJ 13. a l:il0
SA
5,7l
UO 1:114
l,S . 11M .
712 p..oCl_..
Bu
7121O _
7l2 SWot !'laUl
7tillO aM eopc Motl&
. Stcn BIl
II
5200
2lll
7,2 6,9
104 .
lJO 13.2 V.9 12.6 g.Q4 1:i15
7,Q
71% Cdup
7121106 FlioAlb
7fl10 Cln 8l01l &. co
Ho
7,(
40.0
10,
4,l
8.77
10.8 . U.2
516.
.,1210 s.uohi
1,219 10,1 12, 4AB9 7,OS . 7,0 9.6 13. 15.1S Ily 10 l ~, ,... ..... i' ~ ". .~ . ~J'Ul~":::,l".:..~,~:l:l'rlr.,.,.:'. .:.',' , ,.'" ~.. l...~I~¡:~;;:;~';,~i~.'l~~Ij",.~,I~~~.~.~t:"" ~..., . ..,,,.~~~. ,~u:tt~J=~¡'~. .,!' I .,1 .."" i,. 11 I ~: ~~ !': . ,'iCillí-.¡"ï :~;~t~t: ,;f.t..... )¡ ~ .~~~f. ""~ ~"i ~~öa.. .. ~ . ... l~j,,,,, ~, í: . 't~~'/I.l-.l'..,ll(1l,'" '1' .
7I41 AmTeollc_ol
Slcn8oy Bu Bu Bu
u 12.s 7,.11o.10 13. 4~ 8,118 7.l1.. B,gs 12.10 15. M 11l . 4M2 5m 9.75 liAl 1~ 7 2.
7¡N 9$8 . 4AO 5.83 ".133 . 10.1 12. 13.9 '
""''''~''''l'~.l' .' ,. ,..:......~., ~"".."a.. '"¡iIl~' '\'.':~~" ., ~',._.,' .'.,., ,~'''l.
_ceW.._OIll...._ .__I ~ -
~ ~
~: ::i ;: HIh ese
r-_-_.! -i. es I-
o o
CRED1Tsuiss~
23
gi
,i
.- ~ .. " .
.'.'
:~ .~
:: ø :: ~
CONFIOENTIAL
Green Summary Income Statement
.;. f; .
$2,100
GrH(m Qum1erl Finnncinl Peiiorrnilncc Grecn Anf'ual Pcrfcnilancc
FY20 0
5/\ FY2006E FY Ended O"cQmh"r 31,
$1.049 $1,290
( '0' z :: o m ~
Mar-GSA Jun-05A Scp-G5A Dcc-05A M¡i-06A Jiin.06A, Sop-U6E Dec-OUE 20051\, 20a6E 2007E
f:
Net Renu CO of Goos Sod
$795
GlProfU
92 1.144
1,352
3,56 (
~ 711
$89
m 787
j2 .w
JZ
Wol 1,691
1 ,46
249 263
1,157
$1.531
$1,671 I $1,a
-6.250
ai 1,51
£1
m
481 441
2,3081
.2
ml
$4,021 $7,103
=
86
817
3.973
$9MT
~
8,61
152 157
1tl5 165
198
174 175
R&D S&M
79 83
2121 1821
1,OOS
22
G&
jz .w
ass
1,051 ( 1,140
Opemtglnco
492
96 91 Z2 523
516 718
.&
672
i1
m1 l 92
1l
1,305
s
UEI
2,624-
1 ,1 6 9 1 ,1 6 1
6,85
il
4,52
Plus Deprclati
EBITA
814
Intent (Incoe)
ii .l 548
§Z 590
1.,1 (
!W
1,0311 1,111
j4 I .w
1.273
~
~
6.195
.m
2.4321
4.370
I Exns
605
543 695
Prll lnme
.w
G5
!2
!2
aá
170
$2.42 S17A
~ !1 7SB
~, !.
!í
LW e,os
Income Tax
Net Inco
ll
jM
437
$1.51
358
$1.33 .
m 381
.6a 49
æ7i 69
$2.41
310. I
$2.29 304,1
æ.i 771
$22 -I
~
879
1,641
$273
( ~i 1m m .
3,118
Wi 4,2
$5641
$13.00
$1.2
286.6
EPS Average Shes
287.2
28.7
$1.5 30.0
32
88~
13%
291.91
$ 2 .7 6
88%
$9,94 313.6
330.
IIIS EPS
-I
89" (
B~ 1 13% I
$9.95
$13.07
MírIt GlP
90
10% 10%
R&
S&
G&A
81m 11'1 11%
rn
62'Æ
8'
md
12% 13%
1im I
11!N I
9,d
11" im
B"
89 I
Opri InOO
ëlA
69
291'
Nettn.
43"
Growth Bires
TtlRe
22%
12%
~ I1
3Ø
2m
18$
~ ~---31%
~
30
106
10% 694% 14%
4zr
93%
B8% 1
i Rel'lnU6 YIY
25"
Rønt Qo
(2)
113%
2."
114" U%
1m
81% 24%
9% I
Ope /t YIY
O¡xrat/ng Int Q.
rnd
4% 1
Em 71i'J
~
11m
2%
03%
17%
106" .
61%
S%
16%
.1
106% I
77%
72"
sgi6
47%
421% 76%
6%
11m 6n
34;m
.1
má
Ba 1
.
6m
:i..
77
713% I
EPSYIV
7~
31%
('
EPQI
~
CI en
Sõia Thom W8isl Bnt _rê report oa1ed sepem 14, .
~I
(m
12%
.1
c
0 0 ~ en
CREDlTSUISS~
24
cx
c.
. ~. ..-. ... \-~'.
.. ., :.~~
.~~..t'
æ CONFIDENTIL.
(i
::
!(
n o z :! o m
CS does not provide any tax advice. Any tax statement herein regardIng any US federal tax Is not intended or wrtten to be used, and cannot be used, by any taxpayer for the purpose of avoiding any penalties. Any such statement herein was written to support the marketing or promotion of the transacton(s) or mattr(s) to whIch the
~ i-
statement relates. Each taxpayer should seek advice based on the tapayer's particular cIrcumstance frm an Indepeent tax advisor.
These mateal have been provided to you by Credit Suiss ("es) In connecUon wit an actl or potental mandate or engagement and
may no be used or relied upon for any purpose oter than as speocally contemplate by a written agret wi OS. In addition, thase
maer may not be dIsclosed, In whole or In part, or summarlzed or otherse reer to exct as agreed In wrng by OS. The
infornon used In preparing these matls was obtaind frm or through you or your representatives or fr public sourc. OS assmes no resposlbllty for Indepen,dent verfUon of such Informaton and ha reUed on such Infortin belri complet end accrate
In all material respect. To the extntsuct informatin Includes estimates and forecast offure financlal peifnc Oiicludlng esmates of potential cost savings and synerIes) prpare by or revIew or discssed wi the managemen of your company and/or
aller potential trnsacton partcipants or obtained frm public sources, we have assumed that such esma and forests have been reasonably prepared on bases reflectin the bas currently available estmate and judgents of such managements (or, With respect to
estimates and forecasts obtained from pubnc sours, represent reasonable estimate). These mateals were designed fo use by specifc
pens famUlar with the business and the affirs of your company and OS assumes no obligation to update or otrwse reise these
materals. Noting contined herein should be constued as ta, accunting or legal advice. You (and each of your employe,
reprsentatives or oter agents) may dlscles6 to an and all persons, without Ilmlttlon of an kind, the ta treatent and 1astn of
the transactons contemplated by these mateiils and all matenals of any kind ~ncudlri opln(ons or other ta anaes) that are proided to you relating to such ta treatment and strre. For this purpose, the ta tratmnt of a traction Is the purpor or claImed U.s.
federa purported or c1afmed U.S. federal
Income tax tratment of the transcton and the tax strctre of a transacton Is any fac that may be relevant to undersnding the
Inco tax tratment of the trnsacton.
CS has adopted pollces and guidelines desIgned to preserve th Independence of lis researc analys. CS's policies prohibit employees
fro directy or IndIrectly ofering a favorable researc rang or Speoio pric target, or offenng to chang a researe rating or prce target, as consldertlon for or an Inducemellt to oblaln buslness or o.ther compenstion. CS's pollcles prhIbit research analysts from being
copensate for their Involvement In Inveslmant banking trnsactions.
('
fA fA
C
25
C)
~ 0)
CREDITSUISS~
en
.;.4..~'.~~.
~'- .'
:.f ... ~.'.
..~": ~;: ' .. .
Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.
Why Is My Information Online?