Appendix · Market - Total Internet Advertising $719 $878 $1,057 $1,240 $1,438 Market - Total Internet Advertising $460 $536 $618 $706 Growth % 22% 20% 17% 16% Growth % 17% 17% 15%

Appendix

INVESTMENT IN

Deal Overview

October 19, 2012

Market Analysis ($ in millions)

1

• Flixela is first to market, no current competition

• Flixela and Crackle LatAm will provide SPT significant shares of double digit growth video advertising markets in Brazil,

Argentina, and Mexico

Note: Total Internet Advertising for each country excludes Search

Source: PWC Media and Entertainment Outlook, 2012

Market Analysis FY 2012 FY 2013E FY 2014E FY 2015E FY 2016E FY 2013E FY 2014E FY 2015E FY 2016E

All Countries in LatAm Brazil

Market - Video Advertising $32 $47 $67 $88 $109 Market - Video Advertising $23 $31 $40 $49

Growth % 47% 43% 31% 24% Growth % 35% 35% 29% 23%

Market - Total Internet Advertising $719 $878 $1,057 $1,240 $1,438 Market - Total Internet Advertising $460 $536 $618 $706

Growth % 22% 20% 17% 16% Growth % 17% 17% 15% 14%

Flixela Revenue - - $2.1 $6.1 $10.1 Flixela Revenue - $1.1 $2.9 $4.8

Growth % - - 195% 67% Growth % - - 169% 63%

% of Video Advertising Market - 3% 7% 9% % of Video Advertising Market - 4% 7% 10%

% of Total Internet Advertising - 0.2% 0.5% 0.7% % of Total Internet Advertising - 0.2% 0.5% 0.7%

Crackle LatAm Revenue $0.1 $3.4 $8.1 $16.4 $22.0 Crackle LatAm Revenue $1.5 $4.5 $8.4 $10.9

% of Video Advertising Market 7% 12% 19% 20% % of Video Advertising Market 6% 14% 21% 22%

Flixela & Crackle LatAm Revenue $0.1 $3.4 $10.1 $22.5 $32.1 Flixela & Crackle LatAm Revenue $1.5 $5.5 $11.3 $15.7

% of Video Advertising Market 0% 7% 15% 26% 29% % of Video Advertising Market 6% 18% 28% 32%

Argentina Mexico

Market - Video Advertising $2 $3 $4 $5 $6 Market - Video Advertising $9 $12 $15 $19

Growth % 50% 33% 25% 20% Growth % 50% 33% 25% 27%

Market - Total Internet Advertising $48 $56 $65 $74 $86 Market - Total Internet Advertising $167 $197 $228 $262

Growth % 17% 16% 14% 16% Growth % 22% 18% 16% 15%

Flixela Revenue - - - $0.2 $0.5 Flixela Revenue - $0.8 $2.3 $3.7

Growth % - - - 155% Growth % - - 202% 63%

% of Video Advertising Market - - 4% 8% % of Video Advertising Market - 6% 15% 20%

% of Total Internet Advertising - - 0.2% 0.5% % of Total Internet Advertising - 0.4% 1.0% 1.4%

Crackle LatAm Revenue - - $0.5 $1.1 Crackle LatAm Revenue $2 $3 $5 $6

% of Video Advertising Market 0% 0% 11% 18% % of Video Advertising Market 17% 22% 33% 33%

Flixela & Crackle LatAm Revenue - - $0.7 $1.6 Flixela & Crackle LatAm Revenue $1.6 $3.4 $7.2 $10.1

% of Video Advertising Market - - 14% 26% % of Video Advertising Market 17% 28% 48% 53%

KPI Comparison (in millions, except for multiples and titles)

2

FY 2013E FY 2014E FY 2015E FY 2016E FY 2017E FY 2018E CAGR '13-'16 CAGR '14-'18

Uniques (Monthly Average)

Flixela - 2.3 3.7 5.5 6.4 7.1 33%

Crackle LatAm 3.1 5.3 9.0 10.8 - - 52%

Crackle U.S. 16.8 19.1 21.6 24.5 - - 13%

Streams / Unique

Flixela - 2.1x 2.3x 2.5x 2.8x 3.0x 10%

Crackle LatAm 2.1x 2.3x 2.6x 2.8x - - 10%

Crackle U.S. 2.7x 3.1x 3.2x 3.3x - - 7%

Streams (Monthly Average)

Flixela - 4.7 8.5 14.0 17.9 21.6 47%

Crackle LatAm 6.5 12.4 23.0 30.4 - - 67%

Crackle U.S. 45.6 59.8 69.7 81.5 - - 21%

Ads / Stream

Flixela - 2.9x 3.0x 3.2x 3.4x 3.5x 5%

Crackle LatAm 2.8x 3.0x 3.2x 3.4x - - 6%

Crackle U.S. 2.8x 4.3x 5.3x 6.6x 34%

Number of Ads Served (Monthly Average)

Flixela - 13.5 25.8 44.6 60.2 76.8 54%

Crackle LatAm 18.4 37.5 73.7 102.4 - - 77%

Crackle U.S. 125.8 256.1 368.0 535.8 - - 62%

Revenue (Annual)

Flixela - $2.1 $6.1 $10.1 $13.2 $16.3 68%

Crackle LatAm $3.6 $8.7 $17.6 $23.6 - - 87%

Crackle U.S. $20.1 $44.7 $67.2 $97.6 - - 69%

Movie Titles

Flixela - 130 132 151 151 173 7%

Crackle LatAm - 151 166 183 201 221 10%

Crackle U.S. 250 300 350 400 - -

TV Episodes

Flixela - - - - - -

Crackle LatAm - 605 666 732 805 886 10%

Crackle U.S. - 1000 1000 1000 1000 1000

Margin Comparison

3

Based on FY16 - Y5 of Plan Based on FY18 - Y5 of Plan

Crackle Flixela

2013 MRP 2013 MRP

Brazil Spanish Latam Brazil Mexico

Revenue 100% 100% 100% 100%

Sales Tax -14% 0% -14% 0%

Agency Incentive -15% -15% -15% -15%

Partner Rev Share -3% -3% -3% -3%

Ad Sales Commission -20% -20% -20% -20%

Subtotal 57% 66% 57% 66%

Bandwidth -10% -10% -6% -6%

Programming -19% -19% -16% -16%

Marketing -8% -8% -15% -15%

Variable Cost Margin 20% 29% 20% 29%

SSO / Product Development -15% -15% -4% -4%

SG&A/Overhead -17% -17% -9% -9%

EBIT Margin -12% -3% 7% 16%

Programming

4

• 21

• A Few Good Men

• A League of Their Own

• Across the Universe

• Almost Famous

• Blind Date

• Can't Hardly Wait

• Charlie's Angels

• Closer

• Da Vinci Code

• Exorcism of Emily Rose

• Flatliners

• Fun with Dick and Jane (2005)

• Groundhog Day

• Hitch

• Hook

• Jawbreaker

• Julie & Julia

• Kramer Vs Kramer

• Made of Honor

• Michael Jackson's This Is It

• Nick & Norah' Infinite Playlist

• Only You

• Panic Room

• Resident Evil

• RV

• Sex, Lies & Videotape

• Silent Hill

• Single White Female

• Sleepless in Seattle

• Spanglish

• Stomp the Yard

• The Big Chill

• The House Bunny

• The Messengers

• The Net

• The Prince of Tides

• The Quiet

• The Sweetest Thing

• The Ugly Truth

• To Die For

• Tootsie

• Underworld

• What Planet Are You

From?

Flixela Sample Programming List

• The women’s movie category is smaller and more targeted than

the general audience for Crackle

• Experience from Crackle LatAm suggests targeted

programming offering could drive significant streaming

volume. For Crackle LatAm, ~40% of content drives 80% of ad

starts

• ~50% of content is from third parties across the projection

period

Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5

FY2014E FY2015E FY2016E FY2017E FY2018E FY2014E FY2015E FY2016E FY2017E FY2018E

Annual and Monthly Titles

Titles per Year Average Monthly Titles

AAA 15 23 27 27 29 AAA 4 6 7 7 7

AA 14 21 26 26 28 AA 8 11 13 13 14

A 41 39 43 43 47 A 41 39 43 43 47

B/C 75 75 87 87 103 B/C 75 75 87 87 103

Drivers 15 23 24 24 25 Drivers 2 2 2 2 2

Total 160 181 206 206 231 Total 130 132 151 151 173

Flixela and Crackle LatAm Title Comparison

Flixela Crackle LatAm

Movie Titles 130 132 151 151 173 Movie Titles 151 166 183 201 221

Growth - 2% 14% 0% 15% Growth - 10% 10% 10% 10%

TV Episodes - - - - - TV Episodes 605 666 732 805 886

Growth - - - - - Growth - 10% 10% 10% 10%

Total 130 132 151 151 173 Total 756 832 915 1,006 1,107

Revenue

5 Notes: FX rates used in the projections: 2.04 Brazilian reals / $1 US, 12.88 Mexican pesos / $1 US, $4.72 Argentine pesos / $1 US, 1,800 Colombian pesos / $1 US

% Growth

Year 1 Year 2 Year 3 Year 4 Year 5 Year 2 Year 3 Year 4 Year 5 CAGR

FY 2014E FY 2015E FY 2016E FY 2017E FY 2018E FY 2015E FY 2016E FY 2017E FY 2018E FY'14-FY'18

Uniques (Monthly Average)

OTT 27,250 184,473 431,118 702,219 941,309 577% 134% 63% 34% 142%

Mobile 159,735 224,373 349,285 603,827 971,487 40% 56% 73% 61% 57%

Web 2,087,516 3,310,633 4,733,667 5,120,297 5,225,354 59% 43% 8% 2% 26%

Total 2,274,500 3,719,479 5,514,070 6,426,343 7,138,149 64% 48% 17% 11% 33%

Streams / Unique

OTT 2.5x 2.8x 3.0x 3.3x 3.7x 10% 10% 10% 10%

Mobile 1.5x 1.7x 1.8x 2.0x 2.2x 10% 10% 10% 10%

Web 2.1x 2.3x 2.5x 2.8x 3.1x 10% 10% 10% 10%

Total 2.1x 2.3x 2.5x 2.8x 3.0x 11% 11% 10% 9%

Content Streams (Monthly Average)

OTT 68,124 507,300 1,304,132 2,336,634 3,445,425 645% 157% 79% 47% 167%

Mobile 239,603 370,216 633,953 1,205,541 2,133,531 55% 71% 90% 77% 73%

Web 4,383,783 7,647,563 12,028,248 14,311,743 16,065,925 74% 57% 19% 12% 38%

Total 4,691,509 8,525,079 13,966,332 17,853,918 21,644,881 82% 64% 28% 21% 47%

Ad Streams (Monthly Average)

OTT 204,371 1,597,995 4,313,415 8,114,839 12,563,808 682% 170% 88% 55%

Mobile 718,808 1,166,179 2,096,799 4,186,692 7,779,960 62% 80% 100% 86%

Web 12,593,772 23,060,585 38,185,176 47,849,691 56,424,375 83% 66% 25% 18%

Total 13,516,952 25,824,759 44,595,390 60,151,222 76,768,144 91% 73% 35% 28%

Ads / Stream

OTT 3.0x 3.2x 3.3x 3.5x 3.6x 5% 5% 5% 5%

Mobile 3.0x 3.2x 3.3x 3.5x 3.6x 5% 5% 5% 5%

Web 2.9x 3.0x 3.2x 3.3x 3.5x 5% 5% 5% 5%

Total 2.9x 3.0x 3.2x 3.4x 3.5x 5% 5% 6% 5%

Revenue (Annual)

OTT $44,504 $538,212 $1,377,122 $2,460,937 $3,624,824 1,109% 156% 79% 47% 200%

Mobile 87,207 277,103 472,295 895,766 1,581,900 218% 70% 90% 77% 106%

Web 1,758,513 5,387,377 8,475,484 10,109,246 11,328,421 206% 57% 19% 12% 59%

Display/Sponsorships 320,460 247,504 421,846 565,384 703,799 (23%) 70% 34% 24% 22%

Total $2,210,683 $6,450,197 $10,746,747 $14,031,332 $17,238,945 192% 67% 31% 23% 67%

Revenue by Country

Brazil $1,092,222 $2,942,071 $4,784,847 $6,004,376 $7,006,430 169% 63% 25% 17% 59%

Mexico 753,462 2,275,814 3,708,117 4,962,298 6,329,477 202% 63% 34% 28% 70%

Pan Regional 345,000 773,881 1,222,142 1,663,799 2,114,108 124% 58% 36% 27% 57%

Argentina 0 180,659 459,951 622,291 795,415 N/A 155% 35% 28% N/A

Colombia 0 171,404 362,211 492,943 628,303 N/A 111% 36% 27% N/A

Other Countries 20,000 106,368 209,479 285,626 365,213 432% 97% 36% 28% 107%

Total $2,210,683 $6,450,197 $10,746,747 $14,031,332 $17,238,945 192% 67% 31% 23% 67%

Brazil Sales Tax (14.25%) $155,642 $392,513 $638,618 $801,770 $935,747

Net Revenue $2,055,042 $6,057,684 $10,108,129 $13,229,563 $16,303,198 195% 67% 31% 23% 68%

Growth % - 195% 67% 31% 23%

Marketing and Retention (in thousands)

6 (1) Traffic sources include Organic, Social Media, Agency, Production (Creative), Public Relations, Other (CRM, Customer Service)

• In Y5, 47% of traffic comes from marketing efforts

and organic traffic across all platforms(1)

• SEM Paid accounts for paid web traffic

• Retention rates assumptions:

– Growth of 37% year over year for each month

– Additional month of retention for each year

– Y1 is based on current US Crackle retention

rates as of October 2012

• Uniques generated from In-kind Marketing are in

“Other” and “Other Retained” in the Uniques

Summary

• Uniques generated from Other are in “Other” and

“Other Retained” in the Uniques Summary

FY 2014E FY 2015E FY 2016E FY 2017E FY 2018E

Marketing Budget

SEM Paid $1,053 $959 $972 $972 $1,056

Other 589 548 561 560 629

B2B/Trade 250 200 200 215 225

Total $1,892 $1,707 $1,733 $1,747 $1,910

In-kind Marketing

Syndication & Device Partners $541 $1,125 $1,181 $1,240 $1,302

SPT Pay TV Channels Cross Promote 180 375 394 413 434

Subtotal $721 $1,500 $1,575 $1,654 $1,736

Total Including In-Kind $2,613 $3,207 $3,308 $3,400 $3,647

Uniques Summary FY2014E FY2015E FY2016E FY2017E FY2018E

SEM Paid 1,662,500 1,403,646 1,421,875 1,421,875 1,545,833

SEM Retained 167,635 225,566 327,257 462,561 704,414

Other(1)

399,558 1,835,645 3,116,259 3,445,569 3,369,507

Other Retained(1)

44,807 254,622 648,679 1,096,338 1,518,395

Total Uniques 2,274,500 3,719,479 5,514,070 6,426,343 7,138,149

% Total Uniques

SEM Paid 73% 38% 26% 22% 22%

SEM Retained 7% 6% 6% 7% 10%

Other(1)

18% 49% 57% 54% 47%

Other Retained(1)

2% 7% 12% 17% 21%

Total 100% 100% 100% 100% 100%

Total Retained Uniques 9% 13% 18% 24% 31%

Retention Rates for SEM Retained and Other Retained

Month 2 7% 10% 13% 18% 25%

Month 3 2% 3% 4% 5% 7%

Month 4 1% 1% 2% 3% 4%

Month 5 1% 1% 2% 3% 4%

Month 6 0% 1% 1% 2% 3%

Month 7 0% 0% 1% 1% 2%

Month 8 0% 0% 0% 1% 1%

Month 9 0% 0% 0% 0% 1%

Month 10 0% 0% 0% 0% 0%

Month 11 0% 0% 0% 0% 0%

Month 12 0% 0% 0% 0% 0%

Headcount

7

Headcount Summary

Year 1 Year 2 Year 3 Year 4 Year 5

FY'2014 FY'2015 FY'2016 FY'2017 FY'2018

Brazil 1 2 2 2 2

Los Angeles 3 3 3 3 3

Mexico 0 2 2 2 2

Miami 4 6 8 8 8

Women's Channel Headcount 8 13 15 15 15


Mexico 2 2 2 3 3

New York 2 3 4 4 4

Ad Sales Headcount 5 6 7 8 8


Shared Services Headcount 1 1 1 2 2

Miami 1 1 1 2 2

Finance Headcount 1 1 1 2 2

Total Headcount 15 21 24 27 27

Note: Difference in headcount total are the two finance heads which are allocations

Headcount Summary by Position FY'15 (YEAR 2)

Title Location Start Date FY14 Salary

1 Community Manager Miami 04/01/13 $60

2 Marketing Manager Miami 04/01/13 70

3 Video Ops Specialist Los Angeles 04/01/13 70

4 Graphic Designer Los Angeles 04/01/13 75

5 Web Producer Los Angeles 04/01/13 70

6 Editor-In-Chief Miami 04/01/13 90

7 Editorial Specialist Brazil 04/01/13 55

8 Programming Specialist Miami 04/01/13 55

9 Community Specialist Brazil 04/01/14 0

10 Community Specialist Mexico 04/01/14 0

11 Editorial Specialist Mexico 04/01/14 0

12 Programming Specialist Miami 04/01/15 0

13 Marketing Manager Miami 04/01/15 0

14 Community Specialist Miami 04/01/16 0

15 Editorial Specialist Miami 04/01/16 0

16 Digital Sales Planner Mexico 07/01/13 20

17 Account Executive Mexico 05/01/13 52

18 Tech Ops Specialist Los Angeles 07/01/13 56

19 Ad Ops Specialist New York 07/01/13 56




23 Digital Sales Planner Mexico 04/01/16 0

24 Account Analyst Miami 06/01/13 46

25 Account Analyst Miami 04/01/16 0

Total $831

Total including Fringe Benefits $1,056

LatAm Target Female Demographic

8 Source: TGI.net Y2010 Wave2 (2011), MRP Infographic

Online Video Female Demographic Data (Watchers in millions)

9 Source: ComScore Video Matrix, August 2012

Males Females Males % Females %

United States

Video Online Watchers 95 98 49% 51%

Videos/Viewer 313 180 63% 37%

Minutes/Viewer 1,846 820 69% 31%

Minutes/Video 6 5

Brazil



Minutes/Viewer 787 408 66% 34%

Minutes/Video 5 4

Mexico



Minutes/Viewer 1,153 603 66% 34%

Minutes/Video 6 5

Cost of Equity ($ in millions)

10

Company HQ

Levered

Beta Market Cap

Total

Debt

Debt to

Total

Capital

Debt

to

Equity

Marginal

Tax

Rate

Unlevered

Beta

Blanco y Negro S.A. Chile 0.28 $63 $0 0% 0% 17% 0.28

Blinkx USA 0.49 356 0 0% 0% 40% 0.49

Coinstar USA 0.90 1,429 373 21% 26% 40% 0.78

Grupo Clarín S.A. Argentina 1.01 432 745 63% 173% 35% 0.48

Grupo Radio Centro, S.A.B. de C.V. Mexico 1.18 147 5 3% 4% 28% 1.15

Netflix USA 0.70 3,209 400 11% 12% 40% 0.65

Average 0.76 0.64

Median 0.80 0.57

Assumptions

Unlevered Beta 0.57 Peer group median. (CapIQ)

Calculated Levered Beta 0.57 Levered Beta = Unlevered Beta * (1+[(1-Tax Rate) * Target Debt / Equity Value])

Risk-free rate 1.7% Yield of 10 year US Treasury Bond (WSJ, 10/16/12)

Market Premium 6.6% Long-horizon expected equity risk premium (Ibbotson's)

Company Size Premium 9.8% Decile 10b for companies with market caps between $1 million - $128 million (Ibbotson's)

Country Risk Premium 2.8% Weighted average risk premium based on revenue for key markets (Damodaran)

Tax EBIT at tax rate of 31.4% Weighted average risk premium based on revenue for key markets (Damodaran)

Equity as a Percentage of Total Capital 100.0%

Debt as a Percentage of Total Capital 0.0%

Cost of Equity 18.1%

Source: Capital IQ

Preliminary Valuation Overview ($ in millions)

11

Notes: Appendix includes detailed calculations

SPT View includes add-backs of after tax Commission to Ad Sales expense, Ad Sales staff expense less taxes, and incremental Licensing Revenue less 15% for talent residuals and

less taxes

METHODOLOGY IMPLIED VALUATION COMMENTS

DCF Channel View

(Exit Multiple)

■

■

WACC range: 17.1% - 19.1%

Conservative 9.0x - 11.0x terminal multiple

DCF Channel View

(Perpetuity Growth)

■

■

WACC range: 17.1% - 19.1%

Perpetuity growth: 2.0% - 4.0%

DCF SPT View

(Exit Multiple)

■

■

WACC range: 17.1% - 19.1%

Conservative 9.0x - 11.0x terminal multiple

DCF SPT View

(Perpetuity Growth)

■

■

WACC range: 17.1% - 19.1%

Perpetuity growth: 2.0% - 4.0%$7.9

$10.4

$1.5

$4.1

$10.7

$13.9

$3.8

$7.0

$0 $3 $6 $9 $12 $15

Enterprise Value

Discounted Cash Flow Analysis: Channel View ($ in thousands)

12

Valuation Summary

WACC 18.1%


FY'2014E FY'2015E FY'2016E FY'2017E FY'2018E FY2019E FY2020E FY2021E FY 2022E FY 2023E

Unlevered Free Cash Flow ($4,010) ($3,230) ($727) $785 $1,796 $2,237 $1,896 $2,370 $2,844 $3,271

PV of Free Cash Flow ($3,395) ($2,315) ($441) $403 $780 $823 $590 $625 $634 $618

Terminal Value Method

NPV of Cash Flows ($4,967) NPV

Terminal Year EBIT (FY 2018E) $2,403 Exit Multiple

Terminal Multiple 10.0x $5,477 8.0x 9.0x 10.0x 11.0x 12.0x

Terminal Value $24,032 16.1% $4,069 $5,206 $6,343 $7,481 $8,618

Present Value of Terminal Value $10,443 17.1% 3,718 4,808 5,898 6,987 8,077

% of Enterprise Value 190.7% 18.1% 3,388 4,432 5,477 6,521 7,565

NPV Combined $5,477 19.1% 3,076 4,077 5,078 6,079 7,081

IRR 42% 20.1% 2,781 3,741 4,701 5,662 6,622

NPV Combined as a Multiple of 2014E Revenue 2.7x


Implied Perpetuity Growth Rate 9.9%

Perpetuity Growth Method


Terminal Year FCF (FY 2023E) $3,271 Perpetuity Growth Rate

Perpetuity Growth Rate 3.0% $2,525 1.0% 2.0% 3.0% 4.0% 5.0%

Terminal Value $22,252 16.1% $3,622 $4,020 $4,478 $5,011 $5,640



NPV Combined $2,525 19.1% 1,305 1,523 1,767 2,044 2,360

IRR 24% 20.1% 737 918 1,119 1,346 1,603



Implied Terminal EBIT Multiple 4.0x

WA

CC

WA

CC

Discounted Cash Flow Analysis: SPT View ($ in thousands)

13

Valuation Summary

WACC 18.1%


FY'2014E FY'2015E FY'2016E FY'2017E FY'2018E FY2019E FY2020E FY2021E FY 2022E FY 2023E

Unlevered Free Cash Flow ($3,526) ($1,942) $438 $2,253 $3,705 $4,717 $5,151 $6,372 $2,844 $3,271

PV of Free Cash Flow ($2,985) ($1,392) $266 $1,156 $1,610 $1,735 $1,604 $1,679 $634 $618

Terminal Value Method


Terminal Year EBIT (FY 2018E) $2,403 Exit Multiple

Terminal Multiple 10.0x $12,079 8.0x 9.0x 10.0x 11.0x 12.0x

Terminal Value $24,032 16.1% $11,256 $12,393 $13,531 $14,668 $15,806



PV of SPE Cash Flows (2019E-2021E) 2,980 19.1% 9,411 10,412 11,413 12,414 13,416

NPV Combined $12,079 20.1% 8,863 9,824 10,784 11,744 12,704

IRR 67%



Implied Perpetuity Growth Rate 2.4%

Perpetuity Growth Method

NPV of Cash Flows $4,926 NPV

Terminal Year FCF (FY 2023E) $3,271 Perpetuity Growth Rate

Perpetuity Growth Rate 3.0% $9,128 1.0% 2.0% 3.0% 4.0% 5.0%

Terminal Value $22,252 16.1% $10,810 $11,207 $11,665 $12,198 $12,828



NPV Combined $9,128 19.1% 7,640 7,858 8,102 8,379 8,695

IRR 43% 20.1% 6,820 7,000 7,202 7,429 7,686



Implied Terminal EBIT Multiple 4.0x

WA

CC

WA

CC

Scenario Analysis ($ in thousands)

14

Year 1 Year 2 Year 3 Year 4 Year 5

FY'2014E FY'2015E FY'2016E FY'2017E FY'2018E Total

Case: Base

Total Uniques 2,274,500 3,719,479 5,514,070 6,426,343 7,138,149 25,072,543

Net Revenue $2,055 $6,058 $10,108 $13,230 $16,303 $47,754

EBIT ($4,012) ($2,530) $91 $1,400 $2,403 ($2,647)

Case: Uniques Decrease 5% Each Year

Total Uniques 2,160,775 3,533,505 5,238,367 6,105,026 6,781,242 23,818,915

Decrease in Number of Total Uniques (113,725) (185,974) (275,704) (321,317) (356,907) (1,253,627)

Net Revenue $1,952 $5,755 $9,603 $12,568 $15,488 $45,366

Cumulative Revenue Miss ($2,388)

EBIT ($4,059) ($2,673) ($222) $993 $1,904 ($4,057)


Total Uniques 2,047,050 3,347,531 4,962,663 5,783,709 6,424,334 22,565,288

Decrease in Number of Total Uniques (227,450) (371,948) (551,407) (642,634) (713,815) (2,507,254)

Net Revenue $1,850 $5,452 $9,097 $11,907 $14,673 $42,978


EBIT ($4,106) ($2,816) ($534) $585 $1,404 ($5,467)


Total Uniques 1,933,325 3,161,557 4,686,960 5,462,392 6,067,427 21,311,661

Decrease in Number of Total Uniques (341,175) (557,922) (827,111) (963,952) (1,070,722) (3,760,881)

Net Revenue $1,747 $5,149 $8,592 $11,245 $13,858 $40,591


EBIT ($4,153) ($2,958) ($847) $177 $905 ($6,876)


Total Uniques 1,819,600 2,975,583 4,411,256 5,141,075 5,710,520 20,058,034

Decrease in Number of Total Uniques (454,900) (743,896) (1,102,814) (1,285,269) (1,427,630) (5,014,509)

Net Revenue $1,644 $4,846 $8,087 $10,584 $13,043 $38,203


EBIT ($4,200) ($3,101) ($1,160) ($231) $405 ($8,286)

Net Revenue Miss by:

DCF Perpetuity Growth Method Scenario Analysis Base Case (5% ) (10% ) (15% ) (20% )

NPV of Cash Flows ($1,677) ($3,087) ($4,523) ($6,014) ($7,805)

NPV of TV $4,202 $2,954 $1,706 $458 ($275)

NPV Combined $2,525 ($133) ($2,817) ($5,555) ($8,080)

IRR 24% 18% 9% (6%) NA

DWM ($7,968) ($8,374) ($8,780) ($9,528) ($10,378)

NPV of Cash Flows $4,926 $3,212 $1,775 ($320) ($2,415)

NPV of TV $4,202 $2,954 $1,989 $458 ($275)

NPV Combined $9,128 $6,166 $3,764 $138 ($2,690)

IRR 43% 37% 29% 19% 2%

DWM ($5,469) ($5,686) ($6,111) ($6,651) ($7,191)

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Precedent Media Transactions Analysis ($ in millions)

15

PRECEDENT MEDIA TRANSACTIONS ANALYSIS

Enterprise Value /

Announced Target BuyerTarget

HeadquartersTarget Business Description

Enterpise

ValueRevenue EBIT

06/04/12 Grupo Clarín S.A. GS Unidos, L.L.C. Argentina

Operates a cable TV network that offers basic pay TV, premium video, pay per view, HD, as well as

broadband Internet services. Additional segments include Digital Content segment produces content

for the Internet and mobile digital platforms, Broadcasting and Programming $75.0 0.7x 4.2x

04/19/12 New Video Group Vistachiara Productions, Inc. USA

Operates as a distributor of independent films, documentaries, and television sports and kids

programming through DVD, Blu-ray, downloads, streaming platforms 20 1.6x -

01/31/11 LOVEFiLM Amazon.com UK Online Retail, Online Video 115 - -

01/25/11 Dailymotion SA France Telecom France Media technologies / Content delivery / Streaming media 80 6.7x -

01/07/11 Qik Skype USA Online Video, VoIP 150 - -

12/23/10 Sonic Solutions Rovi Corporation USA Online Video, Production Tools - Media 763 7.0x -

10/12/10 Ngmoco DeNa USA Mobility / Mobile content / Entertainment 400 13.3x -

09/28/10 5min Inc. AOL, Inc. USA Internet content & commerce / Video 65 - -

09/19/10 Locaweb Serviços de Internet S.A. Silver Lake Partners Brazil

Offers Internet solutions that include infrastructure for audio and video streaming, Web hosting,

domain registration 68 4.5x -

01/22/10 Dori Media Central Studios S.A. - Argentina

Operates as a television production company which offers production services and owns production

facilities and TV studios 19 0.4x 12.0x

12/04/09 La La Media Apple USA Media technologies / Content delivery / Streaming media 65 - -

10/30/09 The Orchard Enterprises, Inc. Dimensional Associates LLC USA Distributes digital music and video products 15 0.25 -

High $763 4.5x 12.0x

75th Percentile $124 1.6x 10.0x

Median $72 0.7x 8.1x

Mean $153 1.5x 8.1x

25th Percentile $54 0.4x 6.1x

Low $15 0.3x 4.2x

Latin America Public Media Comparables Analysis ($ in millions)

16

PUBLIC MEDIA COMPARABLES ANALYSIS

Enterprise Value as a Multiple of:

Market Enterprise Revenue EBITDA EBIT

Company Name Headquarters Description Value Value LTM LTM LTM

Blanco y Negro S.A. Chile

Engages in the organization, production, participation, and marketing of shows, and professional activities of

entertainment and leisure sporting activities $63 $68 2.4x 9.7x NA

Blinkx USA Provides video search and advertising services on the Internet worldwide 356 317 2.8x 24.7x 49.5x

Coinstar USA Provides automated retail solutions. Owns and operates Redbox Kiosks - expanding into OTT 1,429 1,480 0.7x 3.4x 5.5x

Grupo Clarín S.A. Argentina

Operates a cable TV network that offers basic pay TV, premium video, pay per view, HD, as well as

broadband Internet services. Additional segments include Digital Content segment produces content for the

Internet and mobile digital platforms, Broadcasting and Programming 432 1,203 0.5x 2.1x 3.2x

Grupo Radio Centro, S.A.B. de C.V. Mexico Engages in the production and broadcasting of music, entertainment, news, and special event programs 147 147 1.9x 8.4x 9.4x

Netflix USA Operates an Internet subscription services for TV shows and movies 3,209 2,796 0.8x 12.3x 15.4x

High $3,209 $2,796 2.8x 24.7x 49.5x

75th Percentile $1,179 $1,411 2.2x 11.6x 15.4x

Median $394 $760 1.3x 9.1x 9.4x

Mean $939 $1,002 1.5x 10.1x 16.6x

25th Percentile $199 $189 0.7x 4.7x 5.5x

Low $63 $68 0.5x 2.1x 3.2x

Documents

Appendix · Market - Total Internet Advertising $719 $878 $1,057 $1,240 $1,438 Market - Total Internet Advertising $460 $536 $618 $706 Growth % 22% 20% 17% 16% Growth % 17% 17% 15%