The Football Association Premier League Limited et al v. Youtube, Inc. et al

Filing 276

DECLARATION of Elizabeth Anne Figueira, Esq. in Opposition re: 167 MOTION for Summary Judgment.. Document filed by The Music Force LLC, Cal IV Entertainment, LLC, Cherry Lane Music Publishing Company, Inc., The Football Association Premier League Limited, Robert Tur, National Music Publishers' Association, The Rodgers & Hammerstein Organization, Edward B. Marks Music Company, Freddy Bienstock Music Company, Alley Music Corporation, X-Ray Dog Music, Inc., Federation Francaise De Tennis, The Scottish Premier League Limited, The Music Force Media Group LLC, Sin-Drome Records, Ltd., Murbo Music Publishing, Inc., Stage Three Music (US), Inc., Bourne Co.. (Attachments: # 1 Exhibit 189, # 2 Exhibit 190, # 3 Exhibit 191, # 4 Exhibit 192, # 5 Exhibit 193, # 6 Exhibit 194, # 7 Exhibit 195, # 8 Exhibit 196, # 9 Exhibit 197, # 10 Exhibit 198, # 11 Exhibit 199, # 12 Exhibit 200, # 13 Exhibit 201, # 14 Exhibit 202, # 15 Exhibit 203, # 16 Exhibit 204, # 17 Exhibit 205, # 18 Exhibit 206, # 19 Exhibit 207, # 20 Exhibit 208, # 21 Exhibit 209, # 22 Exhibit 210, # 23 Exhibit 211, # 24 Exhibit 212, # 25 Exhibit 213, # 26 Exhibit 214, # 27 Exhibit 215, # 28 Exhibit 216, # 29 Exhibit 217, # 30 Exhibit 218, # 31 Exhibit 219, # 32 Exhibit 220, # 33 Exhibit 221, # 34 Exhibit 222, # 35 Exhibit 223, # 36 Exhibit 224 Part 1, # 37 Exhibit 224 Part 2, # 38 Exhibit 225, # 39 Exhibit 226, # 40 Exhibit 227 Part 1, # 41 Exhibit 227 Part 2, # 42 Exhibit 227 Part 3, # 43 Exhibit 227 Part 4, # 44 Exhibit 228, # 45 Exhibit 229, # 46 Exhibit 230, # 47 Exhibit 231, # 48 Exhibit 232, # 49 Exhibit 233, # 50 Exhibit 234, # 51 Exhibit 235, # 52 Exhibit 236, # 53 Exhibit 237, # 54 Exhibit 238, # 55 Exhibit 239, # 56 Exhibit 240, # 57 Exhibit 241, # 58 Exhibit 242, # 59 Exhibit 243, # 60 Exhibit 244, # 61 Exhibit 245, # 62 Exhibit 246, # 63 Exhibit 247, # 64 Exhibit 248, # 65 Exhibit 249, # 66 Exhibit 250, # 67 Exhibit 251, # 68 Exhibit 252, # 69 Exhibit 253, # 70 Exhibit 254, # 71 Exhibit 255, # 72 Exhibit 256, # 73 Exhibit 257, # 74 Exhibit 258, # 75 Exhibit 259, # 76 Exhibit 260, # 77 Exhibit 261, # 78 Exhibit 262, # 79 Exhibit 263, # 80 Exhibit 264, # 81 Exhibit 265, # 82 Exhibit 266, # 83 Exhibit 267, # 84 Exhibit 268, # 85 Exhibit 269, # 86 Exhibit 270, # 87 Exhibit 271, # 88 Exhibit 272 Part 1, # 89 Exhibit 272-2, # 90 Exhibit 272 Part 3, # 91 Exhibit 272 Part 4, # 92 Exhibit 272 Part 5, # 93 Exhibit 272 Part 6, # 94 Exhibit 272 Part 7, # 95 Exhibit 272 Part 8, # 96 Exhibit 272 Part 9, # 97 Exhibit 272 Part 10, # 98 Exhibit 272 Part 11, # 99 Exhibit 272 Part 12, # 100 Exhibit 272 Part 13, # 101 Exhibit 272 Part 14, # 102 Exhibit 272 Part 15, # 103 Exhibit 272 Part 16, # 104 Exhibit 272 Part 17, # 105 Exhibit 272 Part 18, # 106 Exhibit 272 Part 19, # 107 Exhibit 273, # 108 Exhibit 274, # 109 Exhibit 275, # 110 Exhibit 276, # 111 Exhibit 277, # 112 Exhibit 278, # 113 Exhibit 279, # 114 Exhibit 280, # 115 Exhibit 281, # 116 Exhibit 282, # 117 Exhibit 283, # 118 Exhibit 284, # 119 Exhibit 285, # 120 Exhibit 286, # 121 Exhibit 287, # 122 Exhibit 288, # 123 Exhibit 289, # 124 Exhibit 290, # 125 Exhibit 291, # 126 Exhibit 292, # 127 Exhibit 293, # 128 Exhibit 294, # 129 Exhibit 295, # 130 Exhibit 296, # 131 Exhibit 297, # 132 Exhibit 298, # 133 Exhibit 299, # 134 Exhibit 300, # 135 Exhibit 301, # 136 Exhibit 302, # 137 Exhibit 303, # 138 Exhibit 304, # 139 Exhibit 305, # 140 Exhibit 306, # 141 Exhibit 307, # 142 Exhibit 308, # 143 Exhibit 309, # 144 Exhibit 310, # 145 Exhibit 311, # 146 Exhibit 312, # 147 Exhibit 313, # 148 Exhibit 314, # 149 Exhibit 315, # 150 Exhibit 316, # 151 Exhibit 317, # 152 Exhibit 318, # 153 Exhibit 319, # 154 Exhibit 320, # 155 Exhibit 321, # 156 Exhibit 322, # 157 Exhibit 323, # 158 Exhibit 324, # 159 Exhibit 325, # 160 Exhibit 326, # 161 Exhibit 327, # 162 Exhibit 328, # 163 Exhibit 329, # 164 Exhibit 330, # 165 Exhibit 331, # 166 Exhibit 332, # 167 Exhibit 333 Part 1, # 168 Exhibit 333 Part 2, # 169 Exhibit 334, # 170 Exhibit 335, # 171 Exhibit 336, # 172 Exhibit 337, # 173 Exhibit 338)(Figueira, Elizabeth)

Eiueiia

Deci.

Tab

From
Sent

246

Kim

James October
Chris

Saturday

To
Subject Attach

2006 719 1PM
Ccscarbor@cred
it-ga

Scarborough

isse

com

zaurus@creditjssecom
Project Project

Maurus

Zach

Snowmass Snowmass

Oct. Oct.

Board Board

Materials

vS.PPT

MateljaJsygppT

Scarby/zach

Attached

is

draft

of the materials.

Im

around

to

disctjst

Thx James

EXHIBIT IGiOHMflOSRRpR

HIGHLY

CONFIDENTIAL

CSSU 003326

CREDIT

Suiss

CONFIDENTIAL

Project
October

Snowmass

IBC Materials
2006

DRAFT
PRELIMINARY
THESE
WRITTEN

SUBJECT TO FURTHER
UPON FOR ANY PURPOSE

REVIEW AND EVALUATION
THAN AS SPECIFICALLY

MTERIALS MAY 401 BE USED OR REUED AGREEMENT WITh CREDIT SUISSE.

OTH

CONTEMPLATED

BY

.1

CONFIDENTIAL

Summary of Key Transaction Terms
11

Based on
-I

Draft

MergerAgreement

as of October

2006

Summary
$1.65 Stock
billion
in

of

Terms

Summary

of Statistics

of

Green Class
for all

Common
options
of

$MM
Illustrative

exchange and

shares

Green
Street
Statistics

warrants Yellow

other equity

interests

Yellow
Txri

Statistics

One

year

indemnification

period

with
Fully-Diluted

certain

customary carveouts
for

Equity

Value

$1650

$132299

Net

Cash Aggregate
Value

10.840 1650
121458

Liability

breaches

is

limited to

Fully-Diluted

of the aggregate

consideration
of the
Revenue
Statistic

Escrow

of

aggregate

CY2007E CY2008E

$150 299

11.Ox
5.5

consideration

12.$x
6.7

Expected
after

to sign

and

publicly

announce

EBIIDA CY2007E CY2008E
$67 144 24.Sx 11.5 9.6x 15.3

market on October
in

Closing anticipated

30

to

45 days

ItOPAT

0Y2007E CY200SE
Based Yellow CA Based
on

$34 78 Green

48.4x 21.2

31.3x 25.2

management based
stock on

data

provided

Ootobere
data

2006. provided 2006.

projections

Green
of

Management
as of

October
ProJections

2006.

on Green
Welsel

pce
2008

$420.50

October

based

on Thomas
estimates

analyst

research

dated

September

14 2006

and

consensus

for

2007

and

respectIvely.

Co

CONFIDENTIAL

Update

Football

Field

Last

_________________________

Summary of
$MM

Valuation Analyses

To discuss

IPO Analysis

rIllustrative

DCF

Selected

Selected Transactions

Analysis

Illustrative

Companies

IPO Analysis

$2000

Green $1500
Offer

$1650MM

siooo

CRED1TSUISS

Yellow Company Overview
-n -l Status Headquarters
Private
is

91

place

for

people as

to share1 personal with enables

comment
video

San 2005

Matco

CA

Yellow
into

on and view
service

videos

online.

originally

started

Founded

an

sharing

and
than

entertainment

destination
daily.

has grown 100
million

videos

on the Upload

people Watching people to

more

site

Yellow

tag

and share
of

videos

Worldwide

Browse

millions

original

videos

uploaded

by community
with

members

ind
Management

Join

and

create

video

groups to connect

similar interests

people who have

Customize
Title

the

experience creating

same
Chad
Steve Gideon
Hurley

by subscribing

to

Background
Executive Executive Paypai

favorites

and

member videos

saving

playilsts

CEO CFO

Integrate

Yellow

videos

on websltes
users with

Chen Yu Paypal Yahool
Treasurer

using

video

embeds
to

or

APIs
their

Make publl

videos or

public

or private prIvately

can

elect

share them

broadcast

videos

friends

and family

upon

upload

Amount Round Round Type
1st

Post-Money Valuation September
discover

Raised Date
11105

20 2006

Announced

$MM
$3.5

$MM
NA NA

Company
Shipping

unsigned

bands

Stage

Clngularsponsored and musicians.
video

promotion

to

September18
Product partnership with

2006 Warner

-Announced Music

distribution

and

revenue

2nd

Group
advertising

4/06

8.0

Shipping

Product

August22
Ads

2006
and and

UnveIled

new
Yellow

CPVA

Brand

Channels_to

Investors

include

Sequoia

Capital

community Warner promote

oonceptsParijclpato encourage dialogue between
their first

Video

marketers Records

names

Brand
for

Brothers her debut

Channel
Hilton

and

partner to

designates

channel

Paris

album Paris Launched
mobile service that allows
to

May 10
directly

2006
from
their

people
the

to

upload

videos

phones

and POAs

Yellow
that

Web

site.

June

212006-Announced
with

strategic audience.

partnership

will

combine

programming
CCo
directly

Yellows

NBCs

May 10 2006
from
their

Launched
mobile

service

that

allows
to

people the

to

upload
site

videos

phones

and

PDAs

Yellowweb

Ca

CONFIDENTIAL

Yellow_Company Overview
Ii -I

contmued

YQrinterfce
Metric
October Metric 2005 July 2006

Rank

Sal

Lmj

Wothl
Unique 0.7MM 16.1MM

ers
ra
es

Viewed

10MM

661MM

___
.aoItyjJsk

terfluge a tes
Per Visitor
11.6
miii

Thonuflgef
SiI4IeI
II

flqw

33.7

miii

Mceh

Forre

Rank omscore

within

online Metrix

video

space.

Based

on

July

2006

metric

Media

per

Current number Current number

of videos

viewed uploaded

daily

180MM
User
I.

tormedlj

of

videos

daily

1001000

LT1
Video

FRcrnber

Only

viden

Source

Yellow

Management

date

provided

October

2006.

Pqg

II
Cs Cs

L.......1

nin
MdkOroup
l.fsN
lInw.U
iIIIthY4Ig.

Jl..

__________
Ccnimn.l

_____

mI

tA

faft

ThCIk4

miitft

L.ttt

I-

CONFIDENTIAL

Benchmarking User Growth
-I

Unique Users

In

MM
Compounded
Monthly Growth
Rate

Aug-OS

Jul-06

54.5 51.4 46.0 52.3

8.3%

41.
35.6 32.2

243
21.8 21.6

12.4 8.3 8.5

95

11.1

12.1 10.5

12.9

14i
12.4

138
1-22

___

14.4 16.1

Yellow
fat oh nok

64.0% 4.7%

Aug-05

Sep-05

Oct-05

Nov-05

Dec-OS

Jan-06

Feb-06

Mar.06

Apr-06

May-06

Jun-06

Jul-06

Source

ComeoDre

Media

Metrix

Co CD

CREDITSUISS

CONFIDENTIAL

Online Video Market Forecasts
71

-I

2005

2010

CAGR
Ia

Carte

79.9%

$601.8

tT@r
Advertising

40.5%

$230.0
$458.0

$92.8

Subscription

40.9%

2006

2007
Subscription Advertising
Ia

Carte

2005-2010

CAGR
Other 36.8%

$1446.5
$172.5

Sports

41.8%

User-Created
580.0

52.6%

$601.6

News
Movies

-SrcSSicIlj

42.5%
68.4%

$230.0
C.

-$1581

Jt
$324.9

$116.1

$517.7 $235.6

69.6%

2005
03 CA CA CA

2006

2007

2008

2009
Sports

2010

TV
30000

Movies

News

User-Created

Other

ID

Maroh

2016

CONFIDENTIAL

Transaction Rationale and Positioning
Enables Green to catapult to the clear number one position
Online video has meaningful Yellow
players
in

online video
to gain

been

top

priority for

Green and they have not been able
efforts

traction

with their stand

alone

has consistently
in

extended

its

leadership

position over

Green and

all

other online

2006

Numerous

revenue

and cost synergies
of

will

drive
of
its

increasing network
its

profits

Green can
can
advertiser

increase usage
better monetize relationships
realize significant

Yellow

as part
traffic

Yellows

and

viewing with

technology

and

Green can

cost

savings

in

ad serving

bandwidth

and sales

Yellow

is

one of the leading and fastest growing
has exhibited tremendous growth
of private internet

Web

2.0

companies
loyal

Company

and has established companies exhibiting

global

following

There are only and traction

handful

this type

of growth

Cl Cl

CREDIT

Suiss

CONFIDENTIAL

Key Revenue Assumptions
ii -I
Currentiy website there are

in

Yellow Model

180MM
videos

videos

viewed

per

day on

Yellow

950MM
par

avg.

videos

viewed

day by 2011E
of

Assumes 90% 13%

400MM
of videos of videos

avg.

viewed
are major partner

per

day

in

20078
markets

CAGR
eta

24%

viewed viewed

geographic websites

on

MySpace

Page

vIews

on Page Page

areas

of the of

Yellow

website
views

670BN
by 2011

annual

page

views

Home
Search Watch

10% 45%

total total

page page page

of of

views
views

CAGR

of

24%

Page
11

46%
page

total

Assumes 2608W 50%

Video

Stream vIews

to
in

Watch 20078

Page

ratio

annual

of

total

video

streams
is

on Yellow

website

are as

Premium movie

50% TV
tnilers

of

premium
allow

content Yellow
to

$10

CPM

in to

2007E
$13 by

636N
videos

premium viewed
wiil

Premium

Content
etc of

copyrighted

content

such

providers

musiovideos Assumes
their

mopetzetheircorttent content providers allow Yellow
to

Growing 2011E

notservendeo
In

ads

10%
in

content

premium 20078 on

monetize

79%

sell

through

on

20078
in

advertising advertising Inventory

inventory video

998W

201

19

75% 5/5Q SSN 40%
video

sell

through

649W
streams
for

annual sold of

ad

revenue

share sphtafter

10%

ailocation

expenses

bandwidth

storage ad streams

eta
in

CA3R

88%

said

200Th

of

total

video

streams
is

on

Yellow

website

are

Non Premium
and
is

10%
content using

of

Non-Premium be monetized ads by 20118

CPM
20119

of

sa

In

200Th
by

s.

45BN annual non
premium videos viewed wMl not serve video ads
in in

Non-Premium between
high of

Content
value

user

generated

videos content

segmented

can
video

Growing to $5

content

and regular can

5%
in

Non

Premum
and

content

be monetized

using

video

ads
sold

2007E
Sell

SBN video ad streams by2OllE
of

2007E

1000W

20118

through

revenue

share

assumptions

consistent

with

CAGR

78%

premium

video video

assumptions ad streams
said
in

900MM
Non-targeted

20078 Pages

run

of

site

ads served on
in

Search and Watch

254BM page views

20078

603N CAGR

page
of

views

by 2011

CPM

of

$0

14 on

24%

$050 CPM
GreenMaii

CCl Cl

Sponsored sponsored

advertising by

on Yeliow
Prison
sell in

home page to
on sovertising

Pans

Hilton

678W

page
of

views

by 20118

CPM
Green

of

$3
to

In

Fofl

Break through
inventory

CAGR

24%

growing

$5

20079 by 20118 thatAOL
Is

Assumes

100%
views

estimates

28BN page

20078

Home
and

Page

CPM

$5

YHOO Home CPM is -43

Page

c-fl

CONFiDENTIAL

C-

Yellow Long-Term Financial Projections
Financials

-I

based on Green Management Case

Yellow Calendar 2007E
Premium
High Value of Site Video $51 Video 36 65 53 148

Year Financial 2009E
$342 20 67 212

Performance 2010E
$565 35 77 274

07-ll CAteR 101%

2008E
$168

2011E
$835 43 84 335

Non-Premium Ads Ads

Run

102% 24% 41% 65% 57%

Sponsored

Gross Revenue
Net

$174 $150

$379 $299 99%
144

$640 $477 60% 246 52% 80%

$950 $681 43% 374 55% 58%

$1297
$902 33% 496

Revenue
Growth

NM
67

EBJTDA

L%
Less

Margins Grovilh

45%

48%
128%

NM

55%
33%

66%
Current headcount eo
of

approximately growing
to of

employees

DA
income 52

200 by2OllE

24
120

ai
215 340 bO%
451

Majority

Operating
Margins

expanses

other operaung consist of bandwidth

5%
35% 34 23%
based on

71%

and

server costs

40%

45
36% 140 29%
2006.

bQ%

83MM
last

in

video costs

streaming over the

income

bandwidth

Taxes 35%
78

months

Tax Rate

NO PAT
Margins

35%
221

35% 293 33% 71%

26%
October

33%

Projections Net

Green

Management
expenses.

data

provided

of partner

revenue

share

CREDIT
CA
C.-

Suiss

CONFIDENTIAL

Selected Companies Trading Statistics
-Il

LNX_I1TI
-I
Trading_Performance

FO
Free.

Capitalization Aggr. Market Value CYOG. PIE
raliltiples

D_
COMPANY
internet

Stock Price 1E1U106

Dice.
to

Equity M.rliet

FD Revenue CYOB CYOG CYOF eyes CYO7

LTM
Love

Aggregate

Value _________________

LT Cr. Rite

CY2OIJI

FYE

EBITDA CYst CYO CYOR CYIG

fliqh

Value

NOPA OVa

FE LIaR

VW

ILIGR

Lefl6

oBey
Yahool

Dec.
toec.

82939
25.47

37.2% 41.3% 34.2%

27.6% 3.3% 25.0%

$42400 37107
13.699

$39045 27377
13.011

29.811

23.6x

17.7 29.6 29.0

6.6 5.0 .3

13
4.7 lix

4.2x

17.11 14.1

13.5
ID.6tc

10.61

23.8

22.6 37.5 45.1

22.7 27.0 31.0

24% 26%

63.6

Arnezon.com

391
4181

1.01

Dec.

3.9 6.0
--

32.59

94
13.4

NM NM

NM

1.4 2.3

22.0

17.211

Ouxfa
Monster

Qonmft

sad Corstmer Uso.
littgaUor

Services 839.98

WorktMde ax

32.6%

38.5%

85.309 2.119 1.727

84.860

32.2

24.6
45.51

19.7

4.2
3.7k

RealNatworks Netflc

Doe.

11.34

25%
23.9% 37.8% 4.3%

3.5 alt

3.1 2.9
0.811

16.0

12.Sic

10.3
$1911

2t911

976%
29.8% 35.9% 99.0% 12.4%

1350 1365 1519
809 419

NM
46.7 45.4 51.8 29.5

22.6 84.0 30.1 47.0 37.0 20.8

17.311

25% 23% 43% 29% 33% 20%

1.0 2.0

Dec.
Neiwotits

NM
6.7 17.1

2411 Des.
9.65 21.17

46.6

114 NM
45.4

30.4
322ac
32.011

ONET
Knot

18.3
28.4x

1.4 8.9

10
3.41

NM
7.Dt 34.31 14.41

1517
643 522

62
135
21.31

NM 111
t4k

Dec. Dec.

3.011

245
i6.Ouc

Bankrata

85

59
4.2

07 11
1.0 Gas

4.611

26.91

481%

427
14.8

NM
219cc

22.0

3.4

iQ0x

8.2

Source II Yehcot

legs

sonaenaaaeallmoteaaedwellst.roet atfjustaltolndade$e

Rsarch
metketvalua
01 yo3ccot

tiotceth

owreatlp

lii

Yeutaol

Japan.

Aanjaied

84%daurasetmelketcapuaezeson

arYaheal

Japan

sIlo

20%

llqiMdJc1acojrt

Selected
Statistict21

Multiple

Reference

Range
High

Implied

EquityValUeJ
High

Low

Low

0Y2C07E

$67

20.0

30.0

$1350

$2024

CY200SE

144

11.0

17.0

51579

$2440

CY2007E

$34

30.Ox

50Ox

$1023

$1706

CY200SE

78

20.0

30.0

$1555

$2332

Assumes
Yellow

Yellow projeolions

net

cash

of upon

80.0MM Green

based

on management
provided

data

provided

Qolober6
2006.

2Q06.

based

Menegemeni

October

Implied
Co C. -I

valuation

range of $1.OBN

to

$2.3BN based on selected company

statistics

10

CONFIDENTIAL

Selected Internet Transactions
$MM
-I FuIIyDiIutecj Equity

Consider adding content

Date 0W09/os
04/24/06 03/16/06 03/06/06 01/17/06 12/14/05 09/12/05 09/08/05 07/18/05 06/07/05 06/01/05 05/04/05 03/21/05 03/21/05 02/16/05 12/16/04 11/14/04 09/14/04 08/03/04 03/26/04 07/08/02

Agg. Value $200 102 566 809

Revenue

Target

EBITDA

_________
Entertainment

Acquirer Viacom Viacom

Value
$200 102 366 665

LTM NA

Atom
Xflre

NTM NA NA
8.8x 5.Sx

LTM

NTM NA NA NA
21 .Ox

NA NA NA
35.9x

uSwitch1
iVillage

EW
NBC

NA
14.6x 6.7x

Scripps Universal

dMarc

Broadcasting4

Green

1238
plc

1258
485
2.600

NA
8.lx 43.3x 11.3x

PrlceGrabbercom Skype IGN
Intermix

GUS
eBay

NA NA
13Ox

NA
19.4x

NA NA NA NA
37.4x

485

2600
650 575 560 667 350

News Corp News Corp
E.W. eBay
corn Experian lrlterActiveCorp Scripps

NA
41.9x

650
571

NA
4.8x 4.0x 3.9x

72x
6.6x 4.9x 2.9x 7.lx

ShopziIla Shopping.com
LowerMyslils

NM
28.Ox 24.3x

560 524 350

168x 189x

Ask
FIickr

NA
4.8x

Jeeves

NA
21.9x

NA
15Sx

1966
50

1858
50 410 415 456
160

Yahoo

NA
10.Ox 10.4x 6.4x 6.5x 3.7x
11.

About.com Rent.con Marketwatcj MusieMatch
Pricerunner.com Kelkoc
Inc

NA NA NA
4.8x

New
eBay

NA
30.Ox

York Times

NA
23.Ox

410 415

Dow

NA
52.9x

Jones

Co

NA
23.lx

512 160 29 576

Yahooj
ValueClick

NA NA
6.2x 5.5x

NA
166x
37.lx

NA NA
222x
54.9x

27 556

Yahoo
eBay

lx

PayPal

1532

1406

10.lx

NM

Median.

..VJt..
LH...
Analyst calculated on research as of reports

...4

.J
..

ioJo1..

6H
51...

72x

Source

.H .I1i

SEC

filings

and

press

releases.

LTM
Based

June

2005. of

estimated as

CYO5 revenues CYO4 and NTM
based
on

560mm
as

and CYO6 CYOS.

LTM

revenues

of

$200mm.

calculated

calculated

Transaction

value

$IO2MM

cash

transaction

value

and

indudes

$1.IBN

in

contingent

payments.

ci

11

CONFIDENTIAL

-n

Selected Transactions Analysis

lii

$MM
Yellow
Statistic

Multiple

Reference

Range
High

Implied

Equity

Value High

Low

SM1ASMAW
CY2007E
$150
9.Ox

Low

13.Ox

$1350

$1949

Adjusted Forward

for

Yellow net cash
statisflcs for

of

$O.OMM

based on

on

management

data

for

the period

ended

September

financial

Yellow

30

2006.

based

calendar

year 2007E

financlals

F.

Implied
CA

valuation

range of $1.4BN

to

$2.OBN

based on selected transaLtion

statistics

CREDIT

SuIsss
12

CONFIDENTIAL

Illustrative
11 in -I

Yellow

DCF AnalyLis
Discounted

Cash Flow

Analysis

Rate

Equity

ValuG

$MM
$4000

$.500

$3144
$3000

$2908
$2500

$2000

$1500

$1000

$500

$0

Li
9Ox
11.Ox 13.Ox 9.Ox 11.Ox 13.Ox 9.Ox 11.Qx 13.Ox

DCF

analysis

implies

valuationrange

for

Yellow

of $2.1

SN

$3.4BN

Cd Cd

CREDIT

SUISS
13

CONFIDENTIAL

Illustrative
.1

DCF

Sensitivity
growth

on Financial Performance

Sensitivity
-I

based on revenue

and EBITDA margin

Illustrative

DCF

Valuation

Range

_________________
$366

CYO7E

CY1 1E Revenue
$576

CAGR $90fl
$1406
75%

R1
Note

CYOT-

CYTI

CAGR

25%

40%

40.0%

$834

$1268

$1973

$2963

45.0%

941

1431

2225

3339

1138

1735

L2701
2729

4067

55.0%

1156

1755

4091

60.0%

1264

1918

2981

4467

Sased

on

22.5% discount base

rate

end

I.Ox

terminal

EBI7DA

mu/tip/a.

Denotes

case

Cl Cl

CREDiT Su
-a

iss

14

CONFIDENTIAL

Green Pro Forma Transaction Impact

$MM

except

per

share

amounts
Green Yellow

Projections Net Income

0Y2007E
$4294.8

CY2003E
$5595.3

0Y2007E

CY200BE
$80.7

ElS
Annualized Weighted P/E

$13.00

$16.94 24.8x

Average

Shares

MM

330.4

330.4

J1j
MM
51653
3.9

at
JJ__I

11
Wfllbii

_____

1I

______________________________________________________________________

1.2%
AcomtonqDflution flti

I1

PTSyns

$22

NM

32.Sx

24.8x

$1.136

2.7

0.8%

NM

NM

$2.4

24.7

2005

4.8

1.5% $35 ..

NM

$2.6

24.6

Note

Does
treatment

nocrerwct

she

potential

Impact

of

cartilii. of Intangibles data provided

accounting tax

and

nancjei

tmactio
other
$1

variables

-

-

Inciuuing

depreciation based based on on
of

and

amortization

among others
Items.
In

equity

compensation

charges/benefits

end

aspense

excess

purohasa

price

nOn.recurrlng/tmnsaciJon

Yellow Green

projections projections on on on cuirent Green Green

Green

Management
Welsel Green

October dated

72006. 14

Assumes 2008

MM
IBES

and

$3MM

or

interest

hoome
and

Thomas
$420.Vflfor

2007

and

2008

respeotwely.

analyst

research

September

and

Based
Based

consensus

for

2007

2008.

pria
tax
rate

as of October

200

reaotlvel

of

292%. of304.4MM
from

Based

stares

outstanding

10-0

for

the

period

ended

June

30

2006

and

options

echeduie

from

10.0

for

tire

period

ended

June

30.2006.

Co

Co Co

CREDIT Suissr
15

CONFIDENTIAL

Appendix

A.

Discounted

Cash Flow

Analysis

Detail

CREDITSUISSE

16

CONFIDENTIAL

Illustrative
Yellow

Discounted Cash Flow Analysis Detail
DCF Assumptions

Management Base Case DCF Analysis

0MM. excent Der share amountnI
Yellow CY2007E CY2008E Projetjons GY2009E CY2OIOE CY2OI1E Oemsna $150
%Grov.lh
Yr.

Income

Statement and margin assumptions
projections IE

Revenue

based

CAGR 07E-IIE

on Green

management

57% CAGR ftom 2007E-201 35%
operating to

Revenue $299 99% EBITDA $477 60%
246 $651

margins
by

in

2007E

$902 33% 496 55%
451

57%

rising

50%

2011

43% 374 55% 340 50%

Me gin
EBIT

67 45% 52

Tax Cash

rate of

144 48%
120

35%

52% 215 45%

Flow Management equals 10%
to

MargIn

35%

71%

assumes
of sales
In

DA
2007E

expense
declining

40%

Tax Effect
rex Rate

50%

35%
34 Amortization 15 10%

in
35% 78
24

5%

by termInal
In-line

year 2011

WOPAT
Plus
Depreciation

35%
140 31

35%
221 84

35% 293 45 5%

Capex

with

DA

expense does
not

71%

Assumes
have
flow

net

working

capital

%Margh Loss 8%
Capital Expenditures

meaningful

impact

on free cash

7%

5%

Unlevered
Gro.4h

fj
$34
$78 128%

Discount $140 80%
$221

Free

Cash

Flow

Rate

and

Terminal
of

MultIples

$293 33%

71%

Assumes

WACC

58%

range

20

25%
of

Terminal

EBITDA

exit

multiple

9-

3x

Discount
Terminal

Illustrative

Rate Forward EB1TDA
Wet Multiple

Preent

Value

as of December 22.5%

31

2006 25.0%

200%
9.Ox 15.2x 7.6% 11.Ox
13.Ox.

9.0
15.2x 10.2%

Imp/led implied

Un/avers
Petpetu
fly

11.Ox

13.Ox

/ncome
Rate

9.Ox

Itox
18.6x

Multiple

l3.Ox

18.6x 10.9%

22.Ox

Growth

16x
124%
$281

22.Ox

11.6%

l2x
12.6%

22.0 16.4%

14.0%

PV

14.8%

of Unlevered TermInal A9gregate

FCP
value

0Y2007E CY2OI1E

CY2O1OE
Beyond

$296 ij.a $2448

PVof
Implied

$296

$296

2i.
$2927

Value

1Q
$3405

$281

$281

2422
$2263 $2703

2.
$3144 $3144 91%

$267

$267

$267

L24
$2.095

Less
Implied

242
$2908

NetDebvoasht
Equltyvalue
to

$2502

$2448 45%
of

Pfemiun1/0Jscouf
Based on
Yellow

$2927
77% October

Offer

$345
106%

$2263 37%

$2703 64%

$2095 27%

$2502
82%

$2il
76%

net

cash

$0OMM

ed on managemeni

data

provided

2005.

17
a.

CONPIDENTAL

-I

Weighted Average Cost of Capital Analysis

-I

Stock
Price

FD
Equity

Company

Capitalization Debt

Reta
Debt
Equity

WACC
Cost
Equity
01141

Assuming
Debt/Total

Varying

Levels

10/B/OS

quiLy%

LK2ifl

t2
Leades 52939
25.47

1%9l

.qsc
100.0% 96.0% 91.0%

ik4
$0 768

1%
1.933 1.929 1.822

Asit

Size

Current

of

Cap 10.0% 20.0%

Asset

Premium

WACC

0.0%

t$4j
18.5% 18.6% 18.5% 18.5% 17.7%

Intwnet

eBeyDec.
Yahoot

$42400 37107 13899

0.0% 2.0% 9.8%

Ceo.

1.933

0.4% 0.4% 07%

18.1% 18.0% 17.8%

Amazon.compo

1953
1.833

18.1% 18.1% 18.4%

17.5% 17.5% 17.8%

16.9% 16.9% 17.2%

3259

1367

185%

n
Ihse Co ntst and Consumer Sevftes
$89.98

flJ
0.9% 1.5% 1.7%

Morsaterwordvade
Realfletworlcs

Dec.
litigation

$5309 2119
1.727

99.6% 95.5% 100.0% 91.4% 100.0% 100.0%

$21 100

0.4% 4.7% 0.0%

1.649 1.410 1.649 1.933 1.300

Dec.

1.645 1.370 1.849 1.826 1.300

18.5% 14.8% 16.5%

11.34 24.11 9.85 21.17 26.91

164%
14.5% 16.5% 17.7% 14.0% 16.5%

17.3% 15.8% 18.2% 18.9% 16.3% 19.2% P4Paas.ttm

17.3%

16.8% 16.6% 17.7% 18.9%

16.3% 15.1% 17.2% 18.3% 15.5%

NotfllxDoo.

160%
18.2% 19.5% 18.3%

CNETNOtWQjlsec
Knot

1517 643 522

143

Qoe.

94% 00% 00%

185%
14.0% 16.5%

17%
2.3% 2.8%

BankreteDao.

L1I4.
Convens Sasod Based Based Size on on on premle
frosted

tili. caE
dated
of

1649

649

159%

ftPR4

vflFUitmasts

nnena

19.2%

...

18.7%

182%

as debt researok
tax rate

SARRA
margins
beesty.year

Ootobor

2oo6

38%
of

U.S.

Treasury lbboson
data.

477%

as olOctober

boss

25

and

equitynlarliet

risk

premium

0f7.10%.

2008

Soacce

eroombea

C.

CREDIT Sut
Ce
v-n

SS
18

CONFIDENTIAL

Appendix

B.

Green Overview

CREDITSUISS

19

CONFIDENTIAL

-C

Green Trading Performance
January 2005 through October
2006
December
Price Current Closing Price High January

17 2006
agreement
for to acquire up-front in

Aveiacje Period

Statistics

Mnounces 20
2005 dMerc

Price

Voiunie

Sroadoasting
or

an

OOO
and Current
Lost

1016/06
Price Price

$420.50 471.63 174.99

Volume

Announced
strategic

$IBN
investment
for
in

consideration potential three

3102MM
of

cash
over

$420.50 Days 410.70 407.27 396.24 389.89 393.31

7335 5753 5398 5604 5766 5855

1/11106

earnout

$1.IBN

GODs
150000 140000 130000

$500

Closing

Low

3/1405 COOs

an

effectIve

5%

stake

years
Lest Last

Time

Wamers

AOL March 312006

10 Days 30 60 90 Days Days Days

Average

Volume

10077

Last Last

$450

October Announces
strategic

2005
muiti-year

hares

agreement promote and Java the

with

Sun

to

November

29

2005

technology

120000 110000
Chair
of the Audit

$400

Green

Toolbar

Committee

100000
$350

90000
February
20.

2006 statement George on

August
Announces
with

2006 agreement be
the

$300

Issues to

press

80000
August 282006
Announces
multi-year with exclusive provider the fer

ciarl

CFO

Foxto

Reyess revenue

comments
growth

exclusive

search
targeted

and agreement

trends

keyword
advertising

eBey

to

70000 60000 50000 40000

beoome
for advertising

$250

.1

provider properties

Foxs web August10
Files

ebay 2005
Including

outside

US

Myspace
for of

in

exchange
registration with the

revenue
at

share

payments

statement

SEC
of of

October Appoints Tlighman
Princeton
its

2005
Dr. Shirley of to

least

3900MM

$200

fcra

public

offering

14159255
Ciass

shares

President University of Directors

common

stock

Board

30000 20000
10
hiiii

$150

IL

Ii

000

IlIiIIIIIIIIiIII

III

IIIiIIIIHIIIIIIrIlIIrdIIiIpl

11111

hut

nhIpIIiIIIIiIpuIiI

1511

ildIIIIIlllIbkiIla.

$100
8/810

10/18/05

12/29/05

3/14/06

5/24/06

8/4/06

Source Note

Fsctset

Denotes

earnings

date.

20

CONFIDENTIAL

Green Summary of Analyst Estimates
rn -I
Date ershara amelia analyst Pir.e LI Growth Rate Eotimatos for

FY Ended

Ductarter

fl.

Company Needham
$sarsteams

________
FY2006E

Revenue
FY20U/E

ESIIDA FY2008E
FYZODSE F12007E

Hecomncrndotion

Target

%J

_______ FY2OUBE

__________
FV200CtE $9.94

BPS FY200/E
$11.55 12.64 12.87 11.40 12.94 11.75 13.00 P12110CC

10/8/06 19/5/06 19/4/08 9/25/06 9/19106 9/19/06 -I9i14/ot 9/1408

Buy Buy Buy Hold
Equity

$490.00

$7020
7.033 16.0%

$9556 10265 10619 9575
11414

$4441

$8023

52500
455.00 450.00 520.00

$13529

4433

WA
198

403 4$6
6241
5.681

88542

8.74 10.2$

1683

Hambreohl

7149 7054

3974 4031 4318 4523 4339 4414

9.00 9.12 9.94 9.94

Pnldenual Slantord

Group Group Partners

Buy Bux Buy Buy Buy Buy

600%

73 69091
7.103

Financial

51500

9188 9687 9682
9.923

Thomas%eSel Cowan

8195
6221

Company

3Q%
600.00 35.0%

6.922

956
8.9$

1223 1137 1228 1328
13.25 14.10 17.59

TWP
for

used

9/14/00 9/13/06 GIll/OS 8/2606

Piper/affray JPMorgar RBQCopltal Giubal Crown Markets Cap/si

7080

6110

2007

2U
46500
500.00 540.00 525.00 23.0% 16.0% 7.146 6.933 10.401

ljnancial analysis.

Buy Buy Buy

4471
3921

430 5479
6.275

10.16 10.20

300%

9827
16237

Consensus used 2008
financIal analysis. for

8/28/06 8/16/06 8/16/06 6/14/06 8/8106 8/8/08 8/1/06 7/3006 7/27/06 7/24/06 7/24/06 7/2406 7/fl/OS 7/V/OS 7/fl/Os 7/fl/OS 7/V/OS 7/fl/OS 7/21/06 7/21106 7/21/06 7/21/06 7/21/06 7/14/06

Oenhofrnrsr

7058

13274

4342 4418

8153

10.17 9.76
9.91

080

Worid

Marko

Buy SlrongBuy Buy Buy

7h135
7471 7.214

9666 11513
10431

5855

1275
11.41

GiobalEqutifasResearob

6952 14014 14384
3J8731 5.076

14.80

Mc.an
Jefferles

Stanley

9265

10.11

13.66 14.10 1.PA9J

500.00

320%
30.0%

7080 7042 7034 7209

10396 9360 9915

4470
4.272

0557 5873 5604
.-

10.04 9.85 7.250 6.90

William

Blair

Soy Underpe/orna Buy Buy Strong Strong Buy Buy Buy Buy 500.00

Guaman

i3f

Oompaury

.9J..I

4.356

93J
14.521 13.20 13.58 13.24 13.10 13.14 11.46 13.28 14.44 17.62

PtrslGlobalstockbrowng Jackson
Securities

1017

7389

i.piJ

4942i

10.46 9.84

kgus Carls

Research

Comoany
Partners

Buy

7275
6981 7071

10833 9.831 10387 10428

14271

9.97

ThinkEquity

4341 3996 4465

6011

1030
9.65 9.90 8.75

JMP

Securtles Brothers

5735 6522

Lehman
Mardi
Pacific

7003
Bay 500.00 25.0%

Lynch Crest
Securities

Suong
Bay Hold

7254 6930

10641

4449

5466

8.90 9.67

Soi
Silts

9810
10031

1265 1316
14.24 12.62 11.87 12.70 12.48 16.02 13.57 15.92

Nicolaus

Strong Hold StrongBuy Buy cc. Buy

Buy 525.00

7035 7409

4457
4.289

5703 6377

994 1989
9.76

OMocapllalMarkets
Citigroup

10833

FirsiAlbany Goldman Susquehanna Nnerican Technology Research Baths

515.00

40.0%

7.134

10342 10310

4492 18578 4356 4408
12.858

6387 6118 6630 7038
7.0221

8.99

7125 7050

7907

8.76

9976
10887

1G09 986

Buy

WSfl
snureen

1rMM IMSWI
SEE teen
stallsrica.

MTh fl

7219

4499

1395

CJ

15.10

Eloonberg
euckuded ty

Pa/set eases
and

Ofnttee

High

estimate

Low

estimate

Co C.

CREDIT

Suiss

21

CONFIDENTIAL

C.

11

Green_Summary Income Statement
MM
except per share

amounts
Green
FY2005/\ Quarterly Financial

Iii

Performance FY2006E

Green

Annual

Performance

-1 Mar-USA
Net

Fl Ended Dec-USE 2005A1

Deceniber 2006E 2007E

Jun-USA $890

Sep-05A $1049

Dec-USA $1290 Ill 1144
157 155

Mar06A
$1531

Jun-06A $1871

Sep-06E

Revenue
Sold

$795

$1800

Cost of Goods GrDss
Profit

$2100

$4024

1Q
711

J2
925
152

$7103

$9887

fl
1352
174 175

767
96 97

2Q
14891
2121 182

21
1582 229 196 1846 249 263

4ZI
3567
484 440

RD SM SM
Operating

8250
864 617

8891

79
83

1189 1167 5485

105 22 576 21

22 Income 492 523

iii 718 888

iiI
925

1005
135 1140

1157

2308

3973

Plus

Depreciation

12Q
514

ES

IT

DA Income
Income Taxes Expense

11I
1305

548 UAI 505 Liz 358
$1.25

590 12P 543

672
12fl

1029

1051

26241

4523

6196

Interest

122 786 955 1031 1111 1273

Pretax

598

Income

2432
Thu

4370

6063

Net Income

22
381

437
$1.51

469
$1.54 304.0

697
$2.29 304.1

22
3116
$9.94 313.5

7721
$2.49

770
$2.42 317.4

879
$2.7 322.4

EPS
Average
IB/EIS

16461
$5.64

4295
$13.00
330.4

$1.33 287.2

Shares

286.6

2597

310.01

2919

EPS

$2.42

$2.78

$9.95

$13.07

Marains
Gross
Profit

RD
GSA
Operating Income

90% 10% 10% 7% 62% 69% 29% 45%

86% 11% 11%

88% 14% 10% 9% 65% 64% 27% 42%

89% 12% 12%

88% 11% 11% 8% 58% 67%

68% 13% 11%

88% 13% 11% 8% 55%

86% 12% 13% 8% 55%

89% 12% 11% 8%

88% 12% 11%

88% 12% 12%

____

6% 59% 68% 30% 43%

____

9% 56% 63% 40% 36%

EBITCA
Tax Rate Net Income

if
.22tJ.

9%I

A.
31% 43%

ai.
31% 42% 32% 41%

27% 45%

25%

a_
58% 29% 44% 77% 72% 76%

8%

_____

9%
65%

48%
88% 9% 77% 4% 88%

29%

43%

Growth
Revenue Revenue

Rates
V/V

22%

27% 12% 113%

30% 18%
106%

25% 23%
114%

93% 19% 81% 24% 83% 48%

QJQ
income

23%
VA
0/0 113%

72% 8% 75% 9% 81%

63% 17% 61% 15% 77% 12%

IOe4
IOG9Zt

39%
38%

EPS C.

Opnthg WY
Q/Q

Income

47% 421% 76%

6%
342%

10% 694% 14% 14 2006.

25%
117%

EPS

6% dad
September

2%

11391

31%

3%

Projections

based

on Thomas

Wolsel

analyst

research

CREDIT

Suiss

22

CONFIDENTIAL

C.

_________
-Il

-I

CS does
written
to

not

provide

be used
herein
relates.

any tax advice. Any tax statement herein regarding and cannot be used by any taxpayer for the purpose
written to support the marketing or promotion

any

US

federal

tax

is

not

intended

or

of avoiding

statement statement independent These may

was

any

penalties. or

Any such
to which

of the

transactions
particular

matters

the

Each taxpayer should
advisor. been
provided
for

seek advice

based on

the

taxpayers

circumstances

from an

tax

to you by Credit Suisse in connection with an actual or potential mandate or engagement and other than as specifically contemplated by any purpose written agreement with CS. In addition these materials may not be disclosed in whole or in part or summarized or otherwise referred to except as agreed in writing by CS. The information used in preparing these materials was obtained from or through you or your or from public representatives sources. CS assumes no responsibility for independent verification of such information and has relied on such information and accurate being complete in all material To the extent such information respects. includes estimates and forecasts of future financial performance including estimates of potential cost savings and synergies prepared by or reviewed or discussed with the managements of your company and/or other potential transaction or obtained from public sources we have assumed that such estimates participants and forecasts have been reasonably prepared on bases reflecting the best currently available estimates and judgments of such managements with respect to or estimates and forecasts obtained from public sources reasonable estimates. represent These materials were designed for use by specific persons familiar with the business and the affairs of your company and CS assumes no to update obligation or otherwise revise these materials. contained Nothing herein should be construed as tax accounting or legal advice. You and each of your employees representatives or other agents may disclose to any and all persons without limitation of any kind the tax treatment and tax structure of the transactions contemplated by these materials and all materials of any kind Including opinions or other tax analyses that are provided to you to such tax treatment and structure. relating For this purpose the tax treatment of transaction is the purported or claimed U.S. federal income tax treatment of the transaction and the tax structure of transaction is any fact that may be relevant to understanding the U.S. federal purported or claimed income tax treatment of the transaction. not

materials

have

be used

CS

or relied

upon

CS
from

has adopted
directly

policies and

guidelines

designed

to

preserve
rating

the

independence
price

of target

its

research

analysts.
to

Css
research

or indirectly for or an
for their

offering

favorable
to

research

or specific

or offering policies

change

as consideration compensated

policies prohibit employees research rating or price target analysts

inducement
in

obtain

business or other banking

compensation.

CSs

prohibit

involvement

from being

investment

transactions

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