"AUDIO SECTOR REPORT "Good Times. These Are The Good Times" - "Recap of Q1 2021 - GCA Advisors

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"AUDIO SECTOR REPORT "Good Times. These Are The Good Times" - "Recap of Q1 2021 - GCA Advisors
“AUDIO SECTOR REPORT
“Good Times. These Are The Good Times” –
“Recap of Q1 2021
"AUDIO SECTOR REPORT "Good Times. These Are The Good Times" - "Recap of Q1 2021 - GCA Advisors
EXECUTIVE SUMMARY
Q1 2021 Audio Sector Wrap-Up
»   The activity across the audio sector in Q1 2021 continues to reinforce our view of the two powerful and fundamental investment themes in the
    category: we are at the start of a 10+ year investment cycle in music, broadly; and, the re-platforming of the industry to the digital tier that is well
    underway will introduce greater monetization opportunities on a truly global scale for creators, artists, fans, indie labels, majors, and investors
»   The quarter’s M&A activity has been robust and across all categories in the music landscape, from creator tools to DSPs to indie publishers
    and technology companies, highlighted by:
            ― Square’s acquisition of Tidal (DSP, artist economy)
            ― Sony’s acquisition of AWAL (distribution)
            ― Francisco Partners’ investment in and acquisition of Native Instruments and Izotope in the same quarter (creator tools)
            ― Spotify’s acquisition of Locker Room (artist economy)
»   Not to be outdone by M&A, the pace of financing and investment in the category has continued unabated with strategics and financial
    sponsors making some very big bets:
            ― Apple’s $50MM investment in UnitedMasters (distribution)
            ― TME’s $57MM investment in PEX (technology)
            ― Blackstone’s $450MM investment in Epidemic Sound (distribution)
            ― Goldman Sachs’s $55MM investment in Splice (creator tools)
»   And “the song as an asset class” theme that we have also been tracking for some time has continued to see momentum, the highlight of the
    quarter being KKR’s announced partnership with BMG to pursue acquisition of music copyrights. The heavy-hitters are in the arena and the
    competition is only elevating, but the investment conviction underscores the tremendous opportunity and belief that the TAM in the industry
    is expanding quickly and that technology is unlocking greater monetization opportunities than ever before
»   And then there is the NFT – a relatively new entrant – making a lot of noise this quarter. We are extremely excited about this development
    and believe in many ways that it is a perfect solution for artists and rights holders to monetize rights and engage passionate fans with
    collectable, unique tokens created around songs or recordings. More to come!

                       Select Q1 Active Acquirers                                                Select Q1 Active Investors

                                                                                                                                                      2
"AUDIO SECTOR REPORT "Good Times. These Are The Good Times" - "Recap of Q1 2021 - GCA Advisors
TABLE OF CONTENTS

 I.   GCA Overview

 II. Digital Music Trends and Insights

 III. Public Markets

 IV. M&A and Financings

 V.   Public Comps Backup

                                         3
"AUDIO SECTOR REPORT "Good Times. These Are The Good Times" - "Recap of Q1 2021 - GCA Advisors
GCA OVERVIEW
GCA’s Dedicated Sector Knowledge and Execution Excellence
GCA Music Focus                                                                   GCA’s Global Music Leadership Team

        STREAMING                              PUBLISHING
                                                                                                               JOHN LAMBROS                                                      SASCHA PFEIFFER
                                                                                                               Member of the Board,                                              Member of the Board,
                                                                                                               President, GCA US                                                 Co-Head, Europe
                                               RIGHTS                                                          jlambros@gcaglobal.com                                            sascha.pfeiffer@gcaaltium.com
       DISTRIBUTION
                                             MANAGEMENT

                                                                                                               SAMEER JINDAL                                                     JONATHAN NORMAN
                                              ENGAGEMENT                                                       Managing Director,                                                Managing Director,
      ARTIST SERVICES
                                                 TOOLS                                                         Head, India                                                       Digital Media
                                                                                                               sjindal@gcaglobal.com                                             jonathan.norman@gcaglobal.com

        AI TOOLS &                               VIDEO &
        ANALYTICS                                CREATIVE
                                                                                                               DAVID FEGLEY                                                      MALTE ABRAMS
                                                                                                               Vice President                                                    Director
                                                                                                               dfegley@gcaglobal.com                                             malte.abrams@gcaaltium.com
      PROMOTIONAL                             LIVE EVENT
        SERVICES                             MANAGEMENT

GCA Overview

       25                                 >500                                           500+                                             245                                           80%
   OFFICES AROUND                            M&A                                       TRANSACTIONS IN                                PE DEALS IN THE                                  REPEAT OR
     THE WORLD                            PROFESSIONALS                                 LAST 3 YEARS                                   LAST 3 YEARS                                 REFERRED CLIENTS

               Notes:
               The above transactions represent a compilation of past and current deals that GCA entities, including GCA Advisors, LLC, GCA Advisors Corporation and GCA Altium have advised on.       4
GCA OVERVIEW
Leading Global Investment Bank Providing Strategic M&A and Capital Markets Advisory Services
                                                                                                             STOCKHOLM

                                                      MANCHESTER                 LEEDS
                                                                                           PARIS       FRANKFURT
                                                      BIRMINGHAM                                      MUNICH
                                                                                                                                                            KYOTO          NAGOYA
                                                                                                       ZURICH                                                                         TOKYO
                                                                    LONDON                                                                    SHANGHAI
                                     NEW YORK                           LAUSANNE
                                                                                         MILAN
                                                                                                                                    NEW DELHI                                          OSAKA
                                                                                                 TEL AVIV                                                                       FUKUOKA
  SAN FRANCISCO
                                                                                                                                                                             TAIPEI
                                                                                                                          MUMBAI
                                                                                                                                           SINGAPORE                      HO CHI MINH CITY

    Global platform:
                                                   Sector expertise:                                       Exceptional cross-
     25 offices in key                                                                                                                                               Experienced team:
                                                  Expansive coverage                                      border capabilities:
     markets across                                                                                                                                                 Over 500 employees
                                                       and deep                                                 Half of all
    America, Asia and                                                                                                                                                 across the globe
                                                     specialization                                           transactions
         Europe
                                                                                Broad spectrum
                                                                                                                                          Diversified
                         Strong reputation                                         of clients:
                                                                                                                                       business model:
                         and track record:                                          Leading
                                                                                                                                        Geographically
                          High number of                                       conglomerates, top
                                                                                                                                     balanced, synergistic
                         repeat clients and                                   private equity firms
                                                                                                                                     and complementary
                             referrals                                        and emerging high-
                                                                                                                                         focus areas
                                                                              growth companies

                     San Francisco | New York | Birmingham | Frankfurt | Fukuoka | Ho Chi Minh City | Kyoto | Lausanne | Leeds | London | Manchester | Milan | Mumbai |
                                       Munich | Nagoya | New Delhi | Osaka | Paris | Shanghai | Singapore | Stockhom | Taipei | Tel Aviv | Tokyo | Zurich                                     5
GCA OVERVIEW
Case Study: Native Instruments’ Sale to Francisco Partners

                                                     GCA acted as exclusive financial advisor to EMH Partners on the sale of a
                                                     majority stake in Native Instruments, the leading vendor of software and
                                                     software-enabled hardware for digital audio production, to Francisco Partners

                          SITUATION                                                      SOLUTION
                          » Native Instruments is the global leader in digital music     » GCA generated strong process momentum by
                             creation software and hardware, with more than 1.5             introducing several very eager bidders early, of which
TRANSACTION DATE             million active users                                           Francisco Partners emerged as the most motivated
Pending                   » Native Instruments was founded in 1996 in Berlin and         » Navigated the process through COVID environment with
January 2021                 employs more than 400 employees worldwide, operating           video conference meetings between the parties
                             in seven global offices
DEAL TYPE                                                                                » Drew in parties that had actively followed the Company
M&A                       » In 2017, EMH Partners invested $60MM in Native                  in the past to increase number of process participants –
                             Instruments, followed by a further investment in 2020 to       even during the lockdown
SECTOR                       achieve majority ownership in the Company
                                                                                         » Received multiple proposals from PE with different
Digital Media, Music,     » With Francisco Partners, Native Instruments is planning to      transaction structures and assisted the Company and
Software, Technology         further enhance its product leadership, drive                  board in evaluating and optimizing the various options
                             consolidation in the growing and fragmented market for
                                                                                         » Drove price and certainty through closure
                             digital music creation, and extend its already leading
                             position in the industry

                                                                                                                                                     6
TABLE OF CONTENTS

 I.   GCA Overview

 II. Digital Music Trends and Insights

 III. Public Markets

 IV. M&A and Financings

 V.   Public Comps Backup

                                         7
DIGITAL MUSIC TRENDS AND INSIGHTS
Q1 2021 Music Sector Wrap-Up – Key Subsegment Trends We’re Tracking

   1                                   2                                   3

 Technology underpins the future     “The hardest working Major in the    Rapid globalization of streaming
of music sharing and monetization   music industry”– WMG’s busy quarter   driving ubiquity & fueling growth

   4                                   5                                   6

   Creator tools consolidation &        The song as an asset class –           The artist economy goes
    investment well underway            another quarter of activity                  mainstream

                                                                                                              8
TECHNOLOGY UNDERPINS THE FUTURE OF MUSIC SHARING AND MONETIZATIO N                                                                                                          1
Pex Raises Funding from Tencent Music
Transaction Overview                                                                    Pex Overview
                                  » On February 16th, Pex announced a $57 million       Headquarters:        Los Angeles, CA
                                    investment from Tencent Music
                                                                                        Founded:             2014
                                  » Existing investors Illuminate Ventures and Susa
                                                                                        Employees:           ~100
                                    Ventures as well as new investors Tencent,
                                    Amaranthine, Cue Ball, and NextGen Venture          Description:         Pex is a leader in digital rights technology aiming to bring
  Received Later Stage VC           Partners also participated in the round                                  transparency, attribution, trust, and compensation to the digital
     Investment from                                                                                         world. The Company’s technology monitors social networks
                                  » The investment will help Pex to scale its
                                                                                                             worldwide to find music and film content that belongs to
                                    Attribution Engine (AE), which the Company
                                                                                                             rightsholders and has been shared without authorization.
                                    describes as “the licensing infrastructure for a
                                    better Internet”
                                  » The round comes a year after the Company’s          Platform Features
         $57MM                      acquisition of Dubset, a music rights startup, in
                                    March 2020

Product Overview – Attribution Engine & Content Mgmt.
             Platforms
             » Support content creators, protect users, license from
               rightsholders, and incentivize advertisers – all while safely
               growing your platform                                                    Selected Transaction Commentary
             Rightsholders
             » Your content is constantly reused without your consent – finally
                                                                                        “itAttribution is vital to the Internet;
                                                                                            can help protect copyright
                                                                                                                                      “everyone
                                                                                                                                        We live in a world where
                                                                                                                                                 is creating, mixing, and
               you can control how, when, and where your content should be                without stifling creation. My vision          remixing copyrighted works. But
               used before it’s published                                                 has always been to deliver a set of           the ability to rapidly identify,
                                                                                          technologies that brought                     attribute, and license them in real-
             Creators                                                                     transparency, accuracy, and –                 time is the missing link to address
             » Platforms using Attribution Engine give their users access to              most importantly – trust to digital           the value-gap. If we could
               more copyrighted content through real-time licensing so you                rights and content. I feel Pex has            seamlessly compensate artists – if
               can create with confidence                                                 now accomplished that and with                we could enable a culture of fair
                                                                                          this round of funding we are well “           and universal attribution – then
                                                                                                                                                                 “
             Law Enforcement                                                              positioned for what lies ahead.               we could set the stage for a truly
             » By securely providing digital footprints of known toxic content                                                          free and open Internet.
               to Pex, uploads with harmful material can be identified and
               blocked from ever publishing                                                     Rasty Turek,                                     Amadea Choplin,
                                                                                                Founder & CEO, Pex                               COO, Pex
                 Notes:
                 Sources: Pitchbook, Press Releases, Company Website.                                                                                                       9
THE HARDEST WORKING MAJOR IN THE MUSIC INDUSTRY                                                                                                                                                                  2
Warner Music Group’s Last Six Months
» Warner Music Group has seen impressive market growth over the past six months, particularly buoyed by a strong start end to 2020 and beginning to 2021
» The Company’s most recent quarter was highlighted by recent corporate / business development endeavors, most notably the partnerships with Feed
        Media and TME and the acquisition of Zhara Music in late March

                                                                                                              Invests in leading Arab indie
                                                                                                                        label Rotana Music     Signs publishing deal
                                                                                                                                                    with Bad Bunny                                6.0MM
                                                                                             Announces partnership with BPG Music                 collaborator MAG       Mkt Cap: $17.7 billion
                 $40.00
                                                                                     Inks exclusive distribution                                                         Stock Price: $32.76
                                 21.9%                                               deal with Sky Digital India
                                                                                                                                                                               Forms strategic
                 $38.00          MARKET CAP APPRECIATION                                                                                                                                          5.0MM
                                                                                                                                                                              deal with leading
                                 (10/1/20 – 3/31/21)                                                                                                                           Malaysian indie
                                                                                                                                                                                     label KRU
                 $36.00
                                Mkt Cap: $14.5 billion     Signs licensing deal                                                                                                                   4.0MM

                                                                                                                                                                                                          Daily Trading Volume
                                Stock Price: $28.17        with Audiomack for                                                  Announces leading-edge
                 $34.00                                    key African regions                                                                                Partners with
                                                                                                                             publishing partnership with
   Stock Price

                                                                                                                                                          Benjamin Biolay’s
                                                                                                                                       Love Renaissance
                                                              Partnership b/w Atlantic                                                                           publishing
                                    Enters exclusive                                                                                                                                              3.0MM
                                                              Records, Artist Partner                                                                    company in France
                 $32.00             admin deal with                                                         Invests in
                                    Grammy-winning            Group, and ADA                                gaming platform
                                    Greta Van Fleet                                                         Roblox’s $520MM                                    Extends worldwide
                 $30.00                                                                                     round of funding                                  publishing deal with
                                                                                                                                                               rising star Saweetie               2.0MM

                 $28.00

                                                                                                                                                                                                  1.0MM
                 $26.00

                 $24.00                                                                                                                                                                            0
                      10/1/20                 10/31/20                       11/30/20                         12/30/20                  1/29/21                   2/28/21                    3/30/21

                            Notes:
                            Sources: Capital IQ, Pitchbook, SEC Filings, Press Releases, Company Website.                                                                                                 10
THE HARDEST WORKING MAJOR IN THE MUSIC INDUSTRY                                                                                                                              2
Warner Music Q1 Partnerships – Tencent & Feed Media
Partnership Overview                                                                    Partnership Overview
                                    » On March 22nd, Warner Music and Tencent                                              » On January 25th, Feed Media Group (FMG) has
                                      Music Entertainment announced that they are                                            partnered with Warner Music Group to launch
                                      partnering on a new joint venture record label                                         Adaptr, a new platform that allows developers
                                      targeting the Chinese market                                                           to legally integrate music into their apps
                                    » Through this deal, Warner Music's repertoire                                         » Adaptr provides full licensing for on-demand
                                      will be made available across all of Tencent's                                         music, allowing businesses to skip direct
                                      online music platforms in mainland China,                                              licensing negotiations and go straight to
  Formed Partnership With                                                                 Formed Partnership With
                                      which includes on-demand streaming channels                                            market with music from popular artists and
                                      QQ Music, Kugou Music, and Kuwo Music,                                                 songwriters
                                      among many others                                                                    » Launched in 2015, FMG helps business to use
                                                                                                                             music to create more engaging experiences for
                                                                                                                             their customers

     This partnership leverages Warner Music’s global resources and                           This partnership further fuels the democratization of music
     experience with managing artists, as well as Tencent’s massive                        production and distribution, allowing the independent community
             influence in the Chinese entertainment industry                                            better access to interacting with music

Selected Partnership Commentary                                                         Selected Partnership Commentary

“Music
  Our collaboration with Tencent
       has already delivered
                                                “andWevision
                                                       have shared the same passion
                                                             by closely collaborating
                                                                                        “frictions
                                                                                          Among other things, reducing
                                                                                                   around licensing will
                                                                                                                                     “developers
                                                                                                                                       With Adaptr, there’s no need for
                                                                                                                                                 to worry about
 tremendous results for local and                 on copyright protection and            enable us to accelerate                       whether they should ask for
 international artists, and now                   empowering and protecting artists      innovation, support the startup               permission or forgiveness. Now
 we're opening up even more                       and their work, while unlocking the    community, engender                           they can get the commercial music
 opportunities together… This                     intrinsic value of music. This         competition, excite our fans with             they want without needing to jump
 renewed and expanded                             cooperation will be a new              new and evolving ways to interact             through the complex hoops of
 partnership means we can help                    industry benchmark for diversified     with music, and deliver additional            music licensing, distribution, and
 make our artists impossible to
                                                                            “
                                                  development and value creation                       “
                                                                                         value for our artists and                     payments — the hurdles that often
 ignore in one of the world's
                                      “           in China's music industry.             songwriters.
                                                                                                                                                           “
                                                                                                                                       lead to illegal usage — and just
 fastest-expanding music markets.                                                                                                      focus on creating.

       Simon Robson,                                         Cussion Pang,                     Oana Ruxandra,                                   Jeff Yasuda,
       President, Recorded Music, WMG                        CEO, Tencent Music                Chief Digital Officer, WMG                       Co-Founder & CEO, FMG
                   Notes:
                   Sources: Pitchbook, Press Releases, Company Website.                                                                                                     11
THE HARDEST WORKING MAJOR IN THE MUSIC INDUSTRY                                                                                                                                  2
Warner Music’s Acquisition of Zhara
Transaction Overview                                                                        Zhara Overview
                                   » On March 24th, Warner Music Group                      Headquarters:       Moscow, Russia
                                     announced its acquisition of leading Russian
                                                                                            Founded:            2018
                                     indie label Zhara Music
                                                                                            Employees:          ~100
                                   » Zhara Music will be rebranded to continue its
                                     successful operations as Atlantic Records              Description:        Zhara Music is a leading independent record label in Moscow,
                                     Russia, plugging into Warner Music’s global                                Russia. The label’s roster includes acts such as HammAli & Navai;
           Acquired                  network                                                                    Зомб; Morgenshtern; Slava Marlow; Rauf & Faik; Jony, Elman,
                                                                                                                Andro, Gafur (RAAVA Music); ЛСП; Idris & Leos; and DAVA.
                                   » Zhara co-founder Bahh Tee will lead the label
                                     as ‘general producer’; Zhara will operate as a
                                     separate office from Warner Music Russia               Atlantic Records Overview
                                                                                                              » Atlantic Records operates a label as a subsidiary of Warner Music
       Undisclosed                                                                                            » Atlantic Records Russia will be headed by Bahh Tee as General
                                                                                                                Producer, and the division will operate independently

Russian Music Market Rapidly Expanding ($MM)
                                                                                                                           Russian Artist Roster
    Acceleration of Russian Music Market Highlighted by Rapid                                          HammAli
                 Growth in Streaming Revenues (1)                                                                                    Зомб                        Morgenshtern
                                                                                                       & Navai
                                                                                   $241.8
                                                                                            Selected Transaction Commentary
   70.3%                                                                                    “been
                                                                                              [Co-Founder] EMIN and I have
                                                                                                  on an incredible journey
                                                                                                                                          “their
                                                                                                                                            EMIN and Bahh Tee have poured
                                                                                                                                                 hearts and souls into building
   CAGR (2016 – 2021)                                                                         since we founded Zhara less than              a label. They’re talented artists,
   RUSSIAN MUSIC STREAMING                                      $141.7                        three years ago. We knew fans                 sincere fans, and successful
                                                                                              loved our music and were hungry               businesspeople, and that’s shone
                                                                                              for new discoveries, but even we              through in the incredible roster
                                                $91.0                                         were surprised by how quickly                 they’ve built. I’m delighted that
                                                                                              things took off! Becoming part of             Bahh Tee has agreed to launch
                                $61.1                                                         the Warner Music family will help             Atlantic Records in Russia –
                                                                                              take our support for our artists to           connecting the world-renowned
                $29.9                                                                                          “
                                                                                              the next level both here and
                                                                                                                                                       “
                                                                                                                                            brand to a whole new generation
   $16.9
                                                                                              internationally.                              of artists.

    2016         2017           2018             2019             2020             2021E            Bahh Tee,                                        Alexander Blinov,
                  Notes:                                                                            Co-Founder, Zhara Music                          Gnrl. Dir., WMG Russia
                  Sources: Statista, Pitchbook, Press Releases, Company Website.
                  (1) Includes both paid subscription and advertising revenue.                                                                                                  12
RAPID GLOBALIZATION OF STREAMING DRIVING UBIQUITY & FUELING GROW TH                                                                                               3
Spotify Announces Further Global Expansion, Adding 80 New Markets
» On February 22, Spotify announced it aims to expand its international footprint, bringing its audio streaming service to 80+ new markets representing over a
    billion people across Asia, Africa, the Caribbean, Europe, and Latin America – bringing the Company’s total markets covered worldwide to 170+

                                                                                      INTERNATIONAL
                                                                                   FOOTPRINT EXPANSION

                     80 NEW MARKETS                              1Bn PEOPLE REPRESENTED                                36 NEW LANGUAGES

                                                                                                      PAKISTAN
                                                         NIGERIA

                                                                                                                                             BANGLADESH

                                                               GHANA                                 SRI LANKA

                                                                                            KENYA
                                                                   TANZANIA

1 Will give millions of creators a        2                                       3                                            4
                                              Will offer full global catalog in       In most markets, will launch with full       Available on Mobile and Desktop
  chance to discover and build a career       new markets at launch and               podcast catalog and in others will           Web Player at launch and will work
  in audio creation—and a billion new         continuously work with local            introduce more from catalog /                to introduce Spotify on more
  fans the chance to hear it                  rightsholders to expand offerings       proprietary creator platform Anchor          platforms in coming months

                                                                                                                                                                13
CREATOR TOOLS CONSOLIDATION & INVESTMENT WELL UNDERWAY                                                                                                                   4
iZotope and Native Instruments Join Forces
Partnership Overview                                                                     iZotope Overview
                                     » On March 11th, iZotope and Native Instruments     Headquarters:     Cambridge, MA
                                       announced that they have teamed up to form a      Founded:          2001
                                       new technology group                              Employees:        ~200
                                     » Francisco Partners together with EMH Partners     Description:      Developer of professional software and hardware tools designed
                                       own both companies and led the partnership                          to offer audio recording, mixing, broadcast, sound design, and
                                       initiative                                                          mastering of digital audio workstation programs. The Company
                                                                                                           serves artists ranging from independent musicians to major film
 Formed Partnership With             » Native Instruments and iZotope will each
                                                                                                           production houses and radio studios.
                                       continue to operate independently, serving the
                                       global creator community with the strength of
                                       their unique capabilities                         Native Instruments Overview
                                     » Both companies hold a shared vision of a          Headquarters:     Berlin, Germany
                                       seamless creative experience and are creating
                                       this unprecedented alliance to shape the future   Founded:          1996
                                       of music-making and audio production              Employees:        ~500
                                                                                         Description:      Provider of hardware and software intended for digital music
Will Create Shared Vision of Seamless Creative Experience                                                  production and performance. The Company’s products
                                                                                                           include a wide range of hardware, software, and digital tools
                                                                                                           that are designed to facilitate professional music production.

                                                                                         Selected Partnership Commentary
 »   Product suite focused on
     empowering and inspiring artists
                                                   »    Product suite focused on audio
                                                        recording, mixing, broadcast,
                                                                                         “getting
                                                                                           As more and more people are
                                                                                                  into music-making, they are
                                                                                                                                    “share
                                                                                                                                      iZotope and Native Instruments
                                                                                                                                           the same mission to inspire
     to create with software                            sound design, and mastering,      looking for easy access to the              and enable creativity. We both
     instruments and sounds, smart                      with market leading post-         building blocks for their journey.          look to make it easier for
     hardware, and platforms                            production audio solutions        Joining forces with iZotope brings          engineers, producers, and
 »   Top-selling products include:                                                        us yet another step closer to               musicians to realize their creative
                                                   »    Top-selling products include:     fulfilling our shared mission to            vision.... With iZotope’s intelligent
                                                                                          empower producers of all levels...          processing and Native Instrument’s
                                                                                          I cannot begin to imagine what our                                       “
                                                                                                                                      innovative offerings, I can’t wait to
                                                                                          combined talent and technology              see what artists will create.
                                                                                                                         “
                                                                                          can come up with to inspire artists
                                                                                          and music creators worldwide.

                                                                                                Constantin Koehncke,                          Mark Ethier,
                                                                                                CEO, Native Instruments                       Co-Founder & CEO, iZotope
                    Notes:
                    Sources: Pitchbook, Press Releases, Company Websites, MusicWatch.                                                                                   14
THE SONG AS AN ASSET CLASS – ANOTHER QUARTER OF ACTIVITY                                                                                                                     5
Recent Catalog Acquisition Activity
 Date          Investor                                    Catalog                                     Transaction Details       “deals
                                                                                                                                   This is one of the most important
                                                                                                                                        we have ever made. Carole’s
                                                                                            Includes complete collection of       iconic songs have been making the
                                                                                                                                  world go around for more than 55
 3/31                                       Paul Simon                                      Simon’s music spanning more
                                                                                                                                  years. It’s very special to welcome
                                                                                            than six decades                      Carole to the Hipgnosis family and it’s
                                                                                                                                  an honor to now be the custodians of
                                                                                            Includes music publishing back
                                                                                                                                                                “
                                                                                                                                  these incredible songs that are of
 3/31                                       Zach Crowell                                    catalog, neighboring rights, and      genuine cultural importance.
                                                                                            producer royalties
                                                                                                                                                       Merck Mercuriadis,
                                                                                            ~$10MM; catalog includes ‘A                                CEO, Hipgnosis
                                            Carole Bayer
 3/18                                                                                       Groovy Kind Of Love’, ‘Nobody
                                            Sager
                                                                                            Does It Better’, and more            “theMark's songwriting is a testament to
                                                                                                                                      enduring power of music in our
                                                                                                                                  lives. Throughout the years, we have
                                                                                            Includes publishing and recorded      all heard Mark's iconic songs in the
 3/3                                        David Crosby
                                                                                            music rights                          theater, on the radio and TV, and of
                                                                                                                                  course at the Karaoke bar – and his
                                                                                                                                  music will continue inspiring fans in
                                                                                            Includes extended rights for three    the future. We couldn't be happier to
 1/28                                       Mark James                                                                                   “
                                                                                                                                  extend our creative partnership with
                                                                                            of his top songs
                                                                                                                                  Mark.

                                                                                                                                                        Jonas Kant,
                                                                                            Includes dozens of songs by The                             SVP, Sony/ATV
 1/26                                       The Zombies
                                                                                            Zombies and other writers

                                                                                            Incudes existing catalog and a
                                                                                                                                 “American
                                                                                                                                   Collective Soul are staples of
                                                                                                                                            radio. I dare someone to
                                                                                                                                  travel the US for a week with ears
 1/18                                       Collective Soul                                 futures agreement with the            perked up and NOT hear one of their
                                                                                            band’s founder, Ed Roland             songs. I am very happy to have gotten
                                                                                                                                                “
                                                                                                                                  to know Ed [Roland] personally over
                                                                                            Majority stake in nearly 500-song     the last year.
 1/11                                       Ryan Tedder                                     music catalog of OneRepublic                                 Josh Gruss
                                                                                            frontman; rumored to be $200MM
                                                                                                                                                         CEO, Round Hill

             Notes:
             Sources: Capital IQ, PitchBook, SEC filings, Press Releases, Company Website, Music Business Worldwide.                                                        15
THE SONG AS AN ASSET CLASS – ANOTHER QUARTER OF ACTIVITY                                                                                                                                              5
Hipgnosis Continues its Growth Trajectory (LSE:SONG)
» Hipgnosis Songs Fund (LSE:SONG) has been active to start the year and now owns more than 120 catalogs, comprised of over 60K songs
» This quarter, the Company proposed an issuance of up to 1.5Bn shares, amended its credit facility, and raised $100MM in a round led by Morgan
    Stanley; the combined actions are projected to net Hipgnosis more than $2.3Bn in additional capital to fund further purchases
» Streaming now has 450MM+ paid subscribers – DSPs’ growth has accelerated the value of royalties, bringing Hipgnosis’ investment thesis to life

Recent Stock Performance (LSE: SONG)                                                                        Highlighted Q1 Activity
 10.0M                                                                                      1.40 €
          Mkt. Cap            £1.3Bn
          EV / LTM Rev         12.8x                                                                                                                  1                                              2
  9.0M
                                                                                            1.35 €
                                                                                                               January 21, 2021                               January 21, 2021
  8.0M                                                                                                         Hipgnosis announced the acquisition of the     Hipgnosis proposed the issuance of up to
                                                                                            1.30 €             catalog of legendary record producer and       1.5Bn shares over the course of the next 12
                                                                                                               mixer Bob Rock. This deal includes 100% of     months. At current share price, Hipgnosis’
  7.0M                                                                                                         Rock’s producer rights to Metallica music      additional issuance would raise over $2Bn
                                                                                            1.25 €
  6.0M
                  1    2
                                                                                                                                                      3                                              4
  5.0M                               3                                                      1.20 €
                                                                            4
                                                                                                               February 5, 2021                               March 18, 2021
  4.0M                                                                                                         Hipgnosis announces it has raised $100MM       Hipgnosis announces the acquisition of
                                                                                            1.15 €             in an investment round led by Morgan           Carole Bayer Sager’s music catalog,
                                                                                                               Stanley Investment Management, its first US-   which industry representatives value at
  3.0M                                                                                                         based institutional investor                   ~$10MM
                                                                                            1.10 €
  2.0M

  1.0M
                                                                                            1.05 €          “ discretionary
                                                                                                              I could see very clearly that streaming was going to take music from being a
                                                                                                                            or luxury purchase to being a utility purchase. People consume
                                                                                                                                                                    “
                                                                                                               music whether they’re living their best lives or whether they’re experiencing
  0.0M                                                                                      1.00 €             challenges and looking for comfort and escape.
    Jan-04-2021              Feb-04-2021               Mar-04-2021                                                                                                    Merck Mercuriadis,
                                   Share Price              Volume                                                                                                    CEO, Hipgnosis

                      Notes:
                      Sources: Capital IQ, PitchBook, SEC filings, Press Releases, Company Website, Music Business Worldwide.                                                                        16
THE SONG AS AN ASSET CLASS – ANOTHER QUARTER OF ACTIVITY                                                                                                                    5
BMG and KKR Announce Acquisition Alliance
Partnership Overview                                                                      BMG Overview
                                 » On March 24th, BMG and KKR struck a deal to            Headquarters:       Berlin, Germany
                                   jointly pursue the acquisition of music
                                                                                          Founded:            2008
                                   copyrights
                                                                                          Employees:          ~1,000
                                 » Through their partnership, KKR and BGM will
                                   co-invest in rights across both recorded music         Description:        BMG provides music publishing and recording rights services
                                   and music publishing                                                       along with pre-financing, song plugging, marketing support,
                                                                                                              repertoire licensing, and advisory services in various areas of
 Formed Partnership With         » This will enable BMG to increase its spending
                                                                                                              rights management for artists and writers.
                                   power in the crowded music rights acquisition
                                   space, while giving KKR a global partner for
                                   music rights with a financial interest in
                                   maximizing returns                                     Platform Service Offerings
                                 » This relationship does not involve any transfer
                                   of equity, nor the formation of a formal joint           Music Publishing                      Books                  Multi-Platform
                                   venture
KKR Investments in the Music Industry
                                                                                                Recordings                        Films                     Licensing
            Artlist (June 2020)
            »   Artlist is an industry-leading provider of high quality, royalty-free
                licensed music, footage, and sound effects for video creators
                                                                                          Selected Partnership Commentary
            Jio Platforms (May 2020)
            »   Based in India, Jio provides broadband and telecom services. Offerings
                include recorded and live music, television, movies, and events
                                                                                          “leader
                                                                                            BMG has become an innovative
                                                                                                  in the music industry by
                                                                                                                                      “helped
                                                                                                                                        Our early partnership with KKR
                                                                                                                                              us rapidly become the first
                                                                                            embracing digital trends early on,            new international music company
            ByteDance (October 2018)                                                        while always placing artists at the           of the streaming age… This new
            »   ByteDance develops mobile internet technologies. The Company owns           center of everything they do. We              relationship with KKR will offer
                multiple in-house brands such as Toutiao and TikTok                         are delighted to reunite with                 artists and songwriters a well-
                                                                                            BMG’s talented team to pursue                 funded, financially stable home for
            Gibson Guitars (October 2018)                                                   future opportunities together,                their music assets, with the
            »   Gibson Brands manufactures musical instruments. It offers electric
                                                                                                         “
                                                                                            leveraging our complementary                  confidence that their songs and
                guitars, acoustic guitars, and other accessories and lifestyle products     platforms.                                    recordings will be managed both
                                                                                                                                                                          “
                                                                                                                                          professionally and respectfully.
            AlphaTheta (March 2015)
            »   Formerly known as Pioneer DJ, AlphaTheta manufactures and markets
                audio gear and equipment and is based in Yokohama, Japan                          Richard Sarnoff,                                Hartwig Masuch,
                                                                                                  Partner, KKR                                    CEO, BMG
                Notes:
                Sources: Pitchbook, Press Releases, Company Website.                                                                                                      17
THE ARTIST ECONOMY GOES MAINSTREAM                                                                                                                                     6
Square’s Acquisition of Majority Stake of TIDAL
Transaction Overview                                                                 TIDAL Overview
                                 » On March 4th, Square announced it had             Headquarters:      New York, NY
                                   entered into a definitive agreement to acquire
                                                                                     Founded:           2014
                                   a majority ownership stake in TIDAL
                                                                                     Employees:         ~300
                                 » Square expects to pay a mix of cash and stock
                                   to fund the transaction. Additionally, Square     Description:       TIDAL is an artist-led global music and entertainment platform
    Acquired Majority              plans to name TIDAL board member and                                 that brings artists and fans closer together through unique
        Stake of                   shareholder Shawn “JAY-Z” Carter to Square’s                         original content and exclusive events. The Company’s streaming
                                   Board of Directors subject to closing                                service has more then 70 million songs and 250K high-quality
                                                                                                        videos in its catalog and is currently available in 56 countries.
                                 » TIDAL will operate independently within Square,
                                   alongside the Seller and Cash App ecosystems
                                 » The acquisition extends Square’s purpose of       Sound Quality Offerings
        $297MM                     economic empowerment to a new vertical:
                                   musicians                                                Standard                        HiFi                        Master

Platform Overview                                                                    » Easily accessible and      » Allows you to stream        » Unauthenticated,
                                                                                       the best compromise          audio using the               unbroken sound quality
            70MM+ Songs – Ad-Free, Anytime & Anywhere                                  between data usage           lossless format FLAC          with the highest
            » With over 70 million tracks, exclusive releases, and tons of             and sound fidelity           at 1400+ Kbps                 possible resolution
              interviews and music videos, TIDAL brings you closer to the
              artists you listen to – completely ad-free and on any device           Selected Transaction Commentary
            Mixes & Radio
            » Get a personalized curation of songs and videos with My Mix or
                                                                                     “idea:
                                                                                       It comes down to one simple
                                                                                            finding new ways for artists
                                                                                                                                   “TIDAL
                                                                                                                                     I said from the beginning that
                                                                                                                                           was about more than just
              discover new music with Artist Radio                                     to support their work. New ideas             streaming music, and six years
                                                                                       are found at intersections, and              later, it has remained a platform
                                                                                       we believe there’s a compelling              that supports artists at every point
            Hand-Picked Playlists                                                      one between music and the                    in their careers. Artists deserve
            » Check out original playlists hand-picked by our team of experts          economy. I knew TIDAL was                    better tools to assist them in their
              or stream guest playlists curated by the artists you love                something special as soon as I               creative journey. This partnership
                                                                                       experienced it, and it will                  will be a game-changer for many
                                                                                       continue to be the best home for“                                       “
                                                                                                                                    [and] I look forward to all this
            Videos & Livestreams                                                       music, musicians, and culture.               new chapter has to offer.
            » Watch over 250,000 high-quality videos, including music videos,
              original content, exclusive livestreams, and events
                                                                                             Jack Dorsey,                                    Shawn “JAY-Z” Carter,
                                                                                             Co-Founder & CEO, Square                        Co-Founder, TIDAL
                Notes:
                Sources: Pitchbook, Press Releases, Company Website.                                                                                                  18
THE ARTIST ECONOMY GOES MAINSTREAM                                                                                                                                  6
Giving Voice to the Connection between Artist and Fan – Profiling Clubhouse, Locker Room, & Stationhead

Headquarters:      San Francisco, CA                                Headquarters:      Los Angeles, CA                Headquarters:      Brooklyn, NY
Founded:           2020                                             Founded:           2018                           Founded:           2015
CEO:               Paul Davidson                                    CEO:               Howard Akumiah                 CEO:               Ryan Star
Employees:         ~40                                              Employees:         ~15                            Employees:         13
Total Users (1):   ~10,000,000                                      Total Users (1):   ~19,000                        Total Users (1):   ~500,000
Status:            Private (Andreessen, TQ                          Status:            Private (Acquired by Spotify   Status:            Private
                   Ventures, Foundational                                              in March 2021)
                   Capital, among others)

 DESCRIPTION / COMMENTARY                                              DESCRIPTION / COMMENTARY                        DESCRIPTION / COMMENTARY
» Founded in 2020, Clubhouse is a new audio-                        » Locker Room is an app that provides users       » Founded in 2015, Stationhead is an iOS,
  first social app that makes it easy to talk to                      with an all-access pass to exclusive              Android, and Web Platform that transforms
  other people                                                        conversations with sports insiders and fans       the traditional radio model, allowing anyone
» Organized into a series of user-created                           » The app allows users to react instantly to        to host and stream a radio show, feature
  “rooms” where people can talk with others,                          sports news as it happens, gather friends in      45MM+ songs, and create an engaging
                                                                                                                        audio experience with their fans
  some of whom are speakers and others                                watch parties for games, and rep favorite
  who are just listening                                              teams and find a community                      » Stationhead allows anyone to broadcast live,
                                                                                                                        take callers, earn money, and play music
» Users can move fluidly between                                    » Locker Room was first introduced in
                                                                                                                         — Up to 4 people can share the air at
  conversations as speakers or listeners,                             October 2020 by Betty Labs, a forward-
                                                                                                                             once, allowing each person to speak and
  covering a myriad of topics                                         leaning team of developers, engineers,
                                                                                                                             be heard at the same time
» Celebrities such as Mark Cuban and Kevin                            product thinkers, and sports fans focused on
                                                                      creating groundbreaking live experiences           — Hosts can earn financial support from an
  Hart have made appearances on the app to                                                                                   audience through in-app tips
  date and the Company has been featured in                         » Betty Labs (along with Locker Room) was
                                                                                                                         — Through Stationhead's patented
  publications like The New York Times,                               acquired by Spotify in March 2021 for an
                                                                                                                             technology, hosts can stream music directly
  Forbes, TechCrunch, CNBC, and WIRED                                 undisclosed amount (rumored to be
                                                                                                                             from Apple Music and Spotify accounts
» Raised $100MM in January 2021 at a post-                            ~$50MM); the acquisition builds on                     without the risk of copyright infringement
  money valuation of $1Bn in a deal led by                            Spotify’s work to create the “future formats
                                                                                                                      » Celebrities like Cardi B, Raekwon, Trey Songz,
  Andreessen Horowitz; currently in acquisition                       of audio” and will accelerate its entry into
                                                                                                                        and Francis and the Lights have used the
  talks with Twitter at a $4Bn valuation                              the live audio space
                                                                                                                        platform and it has been featured in
                    Notes:                                                                                              Billboard, TechCrunch, WSJ, and Complex
                    Sources: Pitchbook, Press Releases, Company Websites.
                    1)    Represents total users as of Q1 2021.                                                                                                    19
THE ARTIST ECONOMY GOES MAINSTREAM                                                                                                                                             6
The Rise of the Non-Fungible Token – NFTs & Music

             What?                                                Why?                                        When?                                Where?

 » NFTs have propelled themselves               » While they can be used as a creative            » NFTs first came into being with     » A large number of marketplaces
   into pop culture in recent                     extension of a song or album, the rapid rise      the creation of blockchain            are currently dedicated to the
   months, spanning sports, art,                  of NFTs is almost certainly attributable to     » While they had initially gained       sale of music-related NFTs
   and – of course – music                        how financially lucrative they can be             particular steam in the fine arts   » These include OpenSea, Rarible,
 » NFTs, or “non-fungible tokens,”              » In today’s streaming world where artists          community, an NFT feeding             Nifty Gateway, and SuperRare –
   are unique digital commodities                 collect fractions of a penny per stream, NFTs     frenzy has since taken off across     although entirely digital, they
   that can be exchanged between                  provide artists a way to earn additional          multiple avenues and genres in        are not unlike traditional auction
   people through blockchain                      income while selling digital collectables         2021                                  houses such as Christie’s or
 » In the case of music, NFTs have              » Meanwhile fans can in turn take pleasure in     » As it relates to music, many          Sotheby’s
                                                  ownership of these collectables and use the
   generally taken the form of                                                                      attribute the NFT explosion due     » A digital wallet set up with
                                                  NFT as an investment opportunity as well
   songs, images, and videos                                                                        to COVID                              cryptocurrency (generally Ether)
                                                  given its limited nature
 » All NFTs come with certificates of                                                             » Before the pandemic, touring          is needed in order to purchase
                                                » According to electronic pop artist RAC, “The
   ownership and authenticity                                                                       had been a key income stream          most NFTs
                                                  play count isn’t really a good measure of
   which cannot be hacked,                        value [of artists]. I listen to my favorite       for artists, which has since been   » Some NFTs (generally higher tier,
   tampered with, or cloned due to                albums once a month. I get tremendous             completely upended                    unique ones) are put on open
   their existence only in digital                value out of them, yet it’s not reflected in    » Creating and selling NFTs has         auction with a reserve price,
   form within blockchain                         their price.”                                     helped a plethora of artists          while others have a set price and
                                                » For this reason, NFTs have become                 partially fill this gap with a        can be bought immediately
                                                  especially powerful for smaller artists to        potentially critical new form of
                                                  earn income from loyal fans                       income

              Who?

   Recent High-Profile Music-Related NFTs:

           3/1: Sold $6MM                         3/3: Sold $12MM                        3/9: Sold $4MM               3/12: Released            4/4: Sold $2MM
            worth of NFTs                           worth of NFTs                         worth of NFTs               record as NFT              worth of NFTs

                   Notes:
                   Sources: Press Releases, Company Websites.                                                                                                             20
DIGITAL MUSIC TRENDS AND INSIGHTS                                                                                                                                           MUSIC VALUE CHAIN:
The Evolving Music Landscape                                                                                        Live Concert
                                                                                                                          Live Concert
                                                                                                                                                                     Artist
                                                                                                                                                                      ArtistServices
                                                                                                                                                                             Services       Production &
                                                                                                                                                                                           Engagement
                                                                                         Publishing                                              Distribution        &&Rights
                                                                                                                                                                         Rights             Engagement
                                                                                                                    Streaming
                                                                                                                          Streaming                                                        Tools
                                                                                                                                                                     Management
                                                                                                                                                                      Management            Tools

`Major Labels         `Large Scale Publishers                                            `Indie Labels                                                Live Concert Streaming

DSPs                                                                 DIY & Distribution                                       Distributors

`Rights Management                                                                           Artist & Label Services                                     Artist Platforms

 DAWs, Creator Platforms & Services                                                   AI Tools & Analytics                 Fan Engagement         Video & Creative            Live Event Mgmt.

                   Notes:
                   This is a representative list and may not include all relevant companies; please email jlambros@gcaglobal.com for inclusion                                                   21
DIGITAL MUSIC TRENDS AND INSIGHTS
Q1 2021: M&A and Financing Activity
M&A Transactions ($MM)                                                                    Financings ($MM)

 Ann.                                                                    Enterprise        Ann.
                                                                                           Ann.                           Enterprise
           Acquirer                          Target                                                   Investor
                                                                                                      Acquirer   Target
                                                                                                                 Target    Amount
 Date                                                                      Value           Date
                                                                                           Date                             Value

 3/30                                                                         NA           3/31                             $50

 3/11                                                                         NA           3/11                             $450

 3/10                                                                         NA           3/10                             $11

 3/4                                                                         $297           3/3                              $4

 2/1                                                                         $430           3/3                             $40

 1/28                                                                         $30          2/22                             $55

 1/28                                                                         NA           2/10                             $57

 1/22                                                                         NA            2/8                              $9

             Notes:
             Sources: PitchBook, Capital IQ, Wall Street Research, Music Business Wire.                                                22
DIGITAL MUSIC TRENDS AND INSIGHTS
Top 10 Leaders in Private Funding Raised-to-Date
 Company                      Headquarters                       Founded   Amt. Raised ($MM) (1)   Company Description

                                                                                                   Developer of an online music platform offering free
                             Hangzhou, China                      2013            $1,410
                                                                                                   and paid online streaming and downloads

                              Shanghai, China                     2012            ~$652            Provider of an online audio streaming platform
    Ximalaya

                                                                                                   Developer of a music streaming platform designed to
                             Berlin, Germany                      2007             $507
                                                                                                   offer audio distribution and music sharing

                                                                                                   Developer of a royalty-free music library to provide
                           Stockholm, Sweden                      2009             $476
                                                                                                   production music for films, TV, and YouTube

                                                                                                   The merger of TouchTunes and PlayNetwork created
                               New York, NY                       2017            ~$324            Octave, the largest in-venue, interactive music and
                                                                                                   entertainment platform

                                                                                                   Provider of music and video distribution services
                                Paris, France                     2005            ~$217
                                                                                                   intended for artists and labels to improve sales

                                                                                                   Provider of music streaming services designed to
                                Paris, France                     2006             $187
                                                                                                   offer personalized music tracks

                                                                                                   Developer of a platform designed for musicians to
                               New York, NY                       2013             $160
                                                                                                   create music, connect and collaborate easily

                                                                                                   Provider of music distribution and marketing services
                                Brooklyn, NY                      2017             $120
                                                                                                   to create partnerships between artists and brands

                                                                                                   Developer of a global music distribution and rights
                              Los Angeles, CA                     2012             $60
                                                                                                   management platform

               Notes:
               Sources: PitchBook, LinkedIn, company websites.
               1)    Includes debt and equity financing.                                                                                                  23
DIGITAL MUSIC TRENDS AND INSIGHTS
Selected Active Investors
 Investor Type                    Investor Logos

 Accelerators / Seed

  Venture Capital /
   Private Equity

 Corporate Investors

     Alternative
      Investors

                 Notes:
                 Sources: Capital IQ, PitchBook, Wall Street Research.   24
DIGITAL MUSIC TRENDS AND INSIGHTS
Most Active Deal Makers
 Company                  Headquarters                          Number of Deals   Investments & M&A

                            New York, NY                             26
                            New York, NY                             19
                         Santa Monica, CA                            18
                         Shenzhen, China                             15                               Ximalaya

                             Stockholm,
                               Sweden                                 9
                           Cupertino, CA                              6
                            New York, NY                              6
                             Seattle, WA                              5
                            New York, NY                              5
                          Beverly Hills, CA                           5
            Notes:
            Sources: Capital IQ, PitchBook, Wall Street Research.                                                25
TABLE OF CONTENTS

 I.   GCA Overview

 II. Digital Music Trends and Insights

 III. Public Markets

 IV. M&A and Financings

 V.   Public Comps Backup

                                         26
PUBLIC MARKETS
Stock Performance
Q1 2021 Share Price Performance
 30%

 20%
                                                                                                                                                                         15.2%
 10%
                                                                                                                                                                          2.1%
                                                                                                                                                                          1.5%
    -                                                                                                                                                                    (0.4%)
                                                                                                                                                                         (1.2%)
                                                                                                                                                                         (4.3%)
(10%)                                                                                                                                                                    (4.3%)
                                                                                                                                                                         (9.1%)
(20%)
     Jan-21                                                      Feb-21                                                 Mar-21

       Music                 DSPs                     Live                Creator Tools   Digital Content           Advertising          Data &            High-Growth
     Publishers                                  Entertainment             & Software     & Marketplaces                                Analytics              SaaS

                                        Core Music                                                          Technology Platforms & Relevant Categories
      Music                  DSPs                     Live                Creator Tools   Digital Content
                                                                                                                   Advertising       Data & Analytics    High-Growth SaaS
    Publishers                                   Entertainment             & Software     & Marketplaces

        2.1%               (4.3%)                    15.2%                  (0.4%)            1.5%                  (1.2%)              (4.3%)              (9.1%)

                                                                   Q1 2021 Share Price Performance

                  Notes:
                  Source: Capital IQ.                                                                                                                                    27
PUBLIC MARKETS
Trading Metrics
Enterprise Value / 2021E Revenue (1)                                                                         Enterprise Value / 2021E EBITDA (1)

 26.1x                                                                                                         28.7x

                                                                                                                            22.8x
                                                                                                                                       21.2x
                                                                                                                                                    18.9x
              14.0x                                                                                                                                              15.4x
                                                                                                                                                                             11.8x
                             7.6x           7.1x                                                                                                                                          7.1x
                                                        4.5x          3.7x         2.9x          2.3x
                                                                                                                                                                                                        NM
High-Growth Advertising      Digital      Data &         DSPs         Live    Creator Tools Music               Digital         DSPs    Data &     Creator Tools Music         Live     Advertising   High-Growth
    SaaS                   Content &     Analytics               Entertainment & Software Publishers          Content &                Analytics    & Software Publishers Entertainment                   SaaS
                          Marketplaces                                                                       Marketplaces

                                             Core Music                                                                           Technology Platforms & Relevant Categories
       Music                         DSPs                        Live                    Creator Tools        Digital Content
                                                                                                                                         Advertising              Data & Analytics          High-Growth SaaS
     Publishers                                             Entertainment                 & Software          & Marketplaces

  2.3x / 15.4x                4.5x / 22.8x                 3.7x / 11.8x                 2.9x / 18.9x         7.6x / 28.7x               14.0x / 7.1x              7.1x / 21.2x              26.1x / NM

                                                                             2021E Revenue / 2021E EBITDA Multiple (1)
                          Notes:
                          Sources: Capital IQ, Wall Street Research. Multiples 50x considered NM.
                          1) Multiples represent median figures.                                                                                                                                          28
TABLE OF CONTENTS

 I.   GCA Overview

 II. Digital Music Trends and Insights

 III. Public Markets

 IV. M&A and Financings

 V.   Public Comps Backup

                                         29
M&A AND FINANCINGS
Precedent M&A Transactions
($MM)
Announced                                                              Enterprise     EV / Revenue    EV / EBITDA
  Date          Acquirer                           Target              Value (EV)     LTM      NTM   LTM       NTM   Target Description
                                                                                                                     Developer of a social audio application where sports fans can spontaneously be joined by
 3/30/21                                                                   NA          NA      NA    NA       NA
                                                                                                                     accomplished insiders and athletes
                                                                                                                     Developer of professional audio software and hardware tools designed to offer audio
 3/11/21                                                                   NA          NA      NA    NA       NA
                                                                                                                     recording, mixing, broadcast, sound design, and mastering programs
                                                                                                                     Operator of a music and sound design company, providing soundtracks for advertisements
 3/10/21                                                                   NA          NA      NA    NA       NA
                                                                                                                     on TV and radio, online content, and VR
                                                                                                                     Operator of a music streaming application that provides lossless audio and high definition
  3/4/21                                                                  $297         NA      NA    NA       NA
                                                                                                                     music videos with curated editorial
                                                                                                                     Provider of an online advertising platform, offering access to audiences from over 2,050
 2/17/21                                                                  $230         NA      NA    NA       NA
                                                                                                                     radio stations
                                                                                                                     Operator of an independent music services company, providing publishing, label services,
  2/1/21                                                                  $430         NA      NA    NA       NA
                                                                                                                     and neighboring rights
                                                                                                                     Operator of an independent record label company, holding the first recordings of many
 1/28/21                                                                   $30         NA      NA    NA       NA
                                                                                                                     famous rock 'n roll artists

 1/28/21                                                                   NA          NA      NA    NA       NA     Provider of advertising and digital marketing services to artists

                                                                                                                     Manufacturer of hardware and software intended for computer-based music production
 1/22/21                                                                   NA          NA      NA    NA       NA
                                                                                                                     and performance
                                                                                                                     Operator of livestreaming concert platform designed to help artists manage and sell tickets
 1/19/21                                                                   NA          NA      NA    NA       NA
                                                                                                                     directly to their most dedicated fans

 12/30/20                                                                 $300+        NA      NA    NA       NA     Provider of on-demand postcasts and audio recordings

 12/17/20                                                                   $2         NA      NA    NA       NA     Owner and operator of audio production studio in Italy

                                                                                                                     Operator of a website that provides sample music libraries for producers and musicians
 12/16/20                                                                  NA          NA      NA    NA       NA
                                                                                                                     worldwide

 12/8/20                                                                   NA          NA      NA    NA       NA     Provider of independent music merchandising services

 12/4/20                                                                   NA          NA      NA    NA       NA     Provider of distribution and label services to the music industry

 11/20/20                                                                  NA          NA      NA    NA       NA     Mobile application allowing users to record videos with professional vocal effects

 11/16/20                                                                  NA          NA      NA    NA       NA     Provider of highly flexible music liscencing services

                                                                                                                     Provider of hosting and ad-insertion capabilities for publishers and targeted ad
 11/10/20                                                                 $235         NA      NA    NA       NA
                                                                                                                     sales for brand partners
                                                                                                                     Creator, producer and distributor of music-based products and services for broadcast media
 11/2/20    Major Triad Media                                              NA          NA      NA    NA       NA
                                                                                                                     use

 10/29/20                                                                  ~$6         NA      NA    NA       NA     Group of web-oriented businesses specializing in merchandise personalization

                  Notes:
                  Sources: Capital IQ, PitchBook, Wall Street Research, Music Business Wire.                                                                                                                30
M&A AND FINANCINGS
Precedent M&A Transactions (cont.)
($MM)
Announced                                                            Enterprise   EV / Revenue    EV / EBITDA
  Date      Acquirer                          Target                 Value (EV)   LTM      NTM   LTM       NTM   Target Description
 10/23/20                                                               $39       NA      NA      NA      NA     Manufacturer and distributor of automobile speakers

 10/21/20                                                               NA        NA      NA      NA      NA     Independent German live music promotion company and event agency

 10/16/20                                                               $39       NA      NA      NA      NA     Provider of artist management and music production services

 9/24/20                                                                NA        NA      NA      NA      NA     Provider of a podcast service that uses AI to customize playlists for listeners

 9/21/20                                                                $4        NA      NA      NA      NA     Provider of comprehensive solutions across music-based marketing

 9/15/20                                                                NA        NA      NA      NA      NA     Operator of a hip-hop news, reviews and commentary outlet

 9/10/20                                                                NA        NA      NA      NA      NA     Operator of a full-service music publishing company

                                                                                                                 American record label established by record producer J.R. Rotem in conjunction with
  9/4/20                                                                NA        NA      NA      NA      NA
                                                                                                                 Warner Music

 8/27/20                                                                NA        NA      NA      NA      NA     Provider of music rights data, administration and management services

                                                                                                                 Provider of subscription digital music services designed to give members advertisement-
 8/25/20                                                                $70       NA      NA      NA      NA
                                                                                                                 free access to millions of songs

 8/19/20                                                                NA        NA      NA      NA      NA     High end mastering studio, founded in 1998 by mastering engineer Barry Grint

                                                                                                                 Operator of a social media publishing platform intended to create and curate content
 8/14/20                                                               ~$85       NA      NA      NA      NA
                                                                                                                 shareable on mobile-first platforms

 7/20/20                                                                NA        NA      NA      NA      NA     Operator of a music production company with 3,500+ songs in its catalog

 7/14/20                                                                NA        NA      NA      NA      NA     Operator of a boutique music placement and licensing company

 5/19/20                                                                NA        NA      NA      NA      NA     Operates as a music publishing company in South Africa

                                                                                                                 Provides digital solutions for identifying musical content, recommending music and
 4/23/20                                                                NA        NA      NA      NA      NA
                                                                                                                 anticipating music-related trends
                                                                                                                 Developer of a news narration platform designed to eliminate the gap between writing for
 3/23/20                                                                $9        NA      NA      NA      NA
                                                                                                                 print and the digital audio market
                                                                                                                 Operator of a media-tech company intended to deliver innovative rights management and
 3/20/20                                                                $38       NA      NA      NA      NA
                                                                                                                 distribution solutions to the music and video industries
                                                                                                                 South Korean entertainment company, offering a record label, talent agency, music
 2/21/20                                                                $75       3.0x    NM     23.5x    NM
                                                                                                                 production, event management and concert production services

 2/20/20    Formax                                                      $5        NA      NA      NA      NA     Provider of sound recording and music publishing services

             Notes:
             Sources: Capital IQ, PitchBook, Wall Street Research.                                                                                                                                      31
M&A AND FINANCINGS
Precedent M&A Transactions (cont.)
($MM)
Announced                                                             Enterprise   EV / Revenue    EV / EBITDA
  Date      Acquirer                          Target                  Value (EV)   LTM      NTM   LTM       NTM   Target Description
  2/5/20                                                                $250       NA      NA      NA      NA     Owns and operates a website and podcasting network

 1/29/20                                                                $450       NA      NA      NA      NA     Owns and operates a sports and culture blogging website and podcast network

 1/22/20                                                                 NA        NA      NA      NA      NA     Provider of technology and services for content owners, record labels and distributors

  1/2/20                                                                $868       NA      NA      NA      NA     Hospitality company providing fans access and tickets to premier live events

 10/18/19                                                                $19       NA      NA      NA      NA     Operates regional commercial radio broadcast networks in Western Australia

                                                                                                                  Developer of an online music production marketplace designed to connect and hire top
 9/12/19                                                                 NA        NA      NA      NA      NA
                                                                                                                  musicians
                                                                                                                  Specializes in the development, acquisition, production, financing and distribution of
 8/22/19                                                               $3,800      3.8x    3.2x   33.9x   15.2x
                                                                                                                  entertainment content

  8/6/19                                                                 $10       NA      NA      NA      NA     Organizes and operates the largest country music festival in the United States

                                                                                                                  Cloud-based application software for music creators, artists, producers and music rights
 7/30/19                                                                 NA        NA      NA      NA      NA
                                                                                                                  holders
                                                                                                                  Operates an online portal for musicians and dealers to buy, sell and trade new, used and
 7/22/19                                                                $275       7.6x    NA      NA      NA
                                                                                                                  vintage gear and guitars

 5/23/19                                                                 NA        NA      NA      NA      NA     Operates a multi-channel network that enables users to monetize their music

 4/25/19                                      Salerton                  $107       NA      NA      NA      NA     Owns and operates a music library

                                                                                                                  Global music company that publishes music for television, film, advertising and corporate
 4/11/19                                                                $217       5.7x    NA     15.1x    NA
                                                                                                                  video productions

 3/27/19                                                                $200       NA      NA      NA      NA     Provider of music distribution and monetization services for independent musicians

 3/26/19                                                                 $56       NA      NA      NA      NA     Produces podcasts, focusing on creating scripted, story-driven programming

 2/19/19                                                                 NA        NA      NA      NA      NA     Provider of music composition, licensing and rights management solutions

                                                                                                                  Provider of music distribution, marketing and technology services intended to help
 2/12/19                                                                 NA        NA      NA      NA      NA
                                                                                                                  independent labels and content owners manage their music
                                                                                                                  Privately-owned radio company, which operates radio stations in Maryland, Delaware and
  2/6/19                                                                 $19       NA      NA      NA      NA
                                                                                                                  New Jersey

  2/6/19                                                                ~$200      NA      NA      NA      NA     Digital media company focused on producing narrative podcasts

  2/6/19                                                                ~$140      NA      NA      NA      NA     Operates a mobile application and a website that broadcasts short audio clips

             Notes:
             Sources: Capital IQ, PitchBook, Wall Street Research..                                                                                                                                        32
M&A AND FINANCINGS
Precedent M&A Transactions (cont.)
($MM)
Announced                                                         Enterprise    EV / Revenue       EV / EBITDA
  Date      Acquirer                         Target               Value (EV)    LTM      NTM      LTM       NTM   Target Description
                                                                                                                  Operates an online advertising technology company that connects brands and audiences
 1/30/19                                                             $162       0.5x       0.4x   10.7x   3.3x
                                                                                                                  through digital advertising and content distribution

 1/24/19                                                             NA          NA        NA      NA      NA     Offers on-demand music, audio streaming and AI technology

                                                                                                                  Provides music and audio streaming technologies and services for businesses and
 1/22/19                                                             $40         NA        NA      NA      NA
                                                                                                                  individuals

 12/7/18                                                             NA          NA        NA      NA      NA     Owns and operates recording studios

 9/24/18                                                            $3,454      2.3x       2.1x   NM       NM     Provides music discovery platform services in the United States and internationally

 9/13/18                                                             $55         NA        NA      NA      NA     Offers podcasts publishing services

                                                                                                                  Provides music for major domestic and overseas music platforms such as iTunes, YouTube
 7/25/18                                                             $51        0.7x       NA      NA      NA
                                                                                                                  and Spotify

 7/23/18     Tron                                                    $140        NA        NA      NA      NA     Develops Internet content delivery technologies for customers worldwide

 6/26/18                                                             $218       2.7x       NA     NM       NA     Provides music distribution services in South Korea

 6/11/18                                                             $10         NA        NA     10.0x    NA     Provides sound design, casting, music and writing services
                                                         (1)
 5/21/18                                                            $2,269      7.8x       NA     20.6x    NA     Operates as a music publishing company

                                                                                                                  Owns and operates Newcap Radio, which is one of Canada's leading radio broadcasters with
  5/2/18                                                             $397       3.0x       NA     9.7x     NA
                                                                                                                  101 broadcast licenses

  5/2/18                                                             $69         NA        NA      NA      NA     Organizes live music events in Brazil

                                                                                                                  Music licensing platform that enables content creators, aggregators and digital music
 4/12/18                                                             NA          NA        NA      NA      NA
                                                                                                                  services to identify and pay royalties to music publishers
                                                                                                                  Manages licensing and commercial releases of video game music, including bespoke PR and
  4/9/18                                                              $6        0.7x       NA     6.7x     NA
                                                                                                                  marketing for the artists and composers

  4/4/18                                                             $50         NA        NA      NA      NA     Global music publisher headquartered in London

 3/23/18                                                             NA          NA        NA      NA      NA     Operator of music streaming application in India

                                                                                                                  Provides monthly subscription packages to license music tracks and sound effects for
 1/10/18                                                             NA          NA        NA      NA      NA
                                                                                                                  creative projects

 12/11/17                                                            $400       7.1x       NA      NA      NA     Developer of an application that connects artists and fans through music discovery

                                                                                                                  Provides audio and lighting products include musical instruments, live sound equipment,
 12/1/17                                                             $28        1.0x       NA      NA      NA
                                                                                                                  recording products and accessories for music retailers

             Notes:
             Sources: Capital IQ, PitchBook, Wall Street Research.
             1) Sony acquired the remaining 60% of EMI Music Publishing in this transaction.                                                                                                              33
M&A AND FINANCINGS
Precedent M&A Transactions (cont.)
($MM)
Announced                                                                     Enterprise   EV / Revenue    EV / EBITDA
  Date               Acquirer                          Target                 Value (EV)   LTM      NTM   LTM       NTM   Target Description
                                                                                                                          Manufacturer of hardware and software intended for computer-based music production
 10/19/17                                                                        NA        NA      NA     NA       NA
                                                                                                                          and performance

 10/15/17                                                                       $295       4.1x    NA     NM       NA     Investment holding company active in the entertainment and music sectors

  9/22/17                                                                       $245       NA      NA     NA       NA     Operates as an independent music publisher

  8/31/17                                                                        $50       1.7x    NA     NM       NA     Provides radio music services in the United States and internationally

  6/19/17                                                                        $18       NA      NA     NA       NA     Provides rights management, production, publication and live event services
                                                          Music Catalogue
                                                                                                                          Provides ticketing, marketing and analytics tools that help event promoters and venues
  6/9/17                                                                        $200       NA      NA     NA       NA
                                                                                                                          book talent and streamline operations

  5/9/17                                                                         $11       NA      NA     NA       NA     Provides an online service that turns iPhones into wireless karaoke microphones

  5/3/17                                                                         $26       NA      NA     NA       NA     Distributor of a high-quality, focused roster of independent record labels

  4/13/17                                                                       $626       1.3x    1.3x   8.0x    6.7x    Provides in-store media solutions in the United States and internationally

  2/13/17                                                                       $922       1.4x    1.3x   6.3x    5.9x    Engages in music distribution, commercial systems, ICT and other businesses in Japan

  2/2/17                                                                       $2,813      2.3x    NA     8.6x     NA     Provides radio broadcasting services in the United States

                                                                                                                          Offers broadcasting services and operates thematic channels for the digital pay-television
  1/30/17                                                                       $289       1.7x    NA     7.5x     NA
                                                                                                                          market in France

  1/4/17                                                                       $1,200      4.4x    NA     NA       NA     Provider of music licensing and administration services

                                                                                                                          Broadcasts live events and world premieres from stages, festivals and music events in
  1/3/17                                                                         $8        NA      NA     NA       NA
                                                                                                                          Mexico, Europe, Africa, Asia and Australia
                                                                                                                          Provider of entertainment data and technology for music, consumer electronics,
 12/20/16                                                                       $560       NA      NA     NA       NA
                                                                                                                          automakers, media and cable and satellite operators

 11/23/16                                                                        NA        NA      NA     NA       NA     Owns and operates an online music streaming, sharing and distribution platform

                                                                                                                          Identifies and collects money earned by songwriters and music publishers for use of their
  7/21/16                                                                        NA        NA      NA     NA       NA
                                                                                                                          works in YouTube videos
                                                                                                                          Developer of an application programming interface designed to deliver powerful music and
  5/12/16                                                                        NA        NA      NA     NA       NA
                                                                                                                          licensing capabilities

Summary Statistics
Mean                                                                                       3.1x    1.7x   13.4x    7.8x

Median                                                                                     2.5x    1.3x   9.9x     6.3x

                      Notes:
                      Sources: Capital IQ, PitchBook, Wall Street Research.                                                                                                                                       34
M&A AND FINANCINGS
Precedent Financings
($MM)
Announced                                                                    Amount              Enterprise
  Date        Investor                             Target                    Invested            Value (EV)   Target Description
                                                                                                              Provider of music distribution and marketing services intended to facilitate partnerships between artists
 3/31/21                                                                        $50                 NA
                                                                                                              and brands

 3/11/21                                                                       $450               $1,400      Developer of a royalty-free music library, providing production music for films, TV, and YouTube

 3/10/21                                                                        $11                 NA        Provider of a digital platform intended to help share music clips in text messages

  3/3/21                                                                        $4                  NA        Developer of a music technology platform intended to allow artists to monetize their music

  3/3/21                                                                        $40                 NA        Operator of a music streaming platform

 2/22/21                                                                        $55                $398       Developer of a music creation platform designed to produce, connect, and collaborate easily

                                                                                                              Provider of a digital rights technology that enables transparency and accuracy to license and manage
 2/10/21                                                                        $57                 NA
                                                                                                              content

  2/8/21                                                                        $9                  NA        Provider of virtual reality, live music performance experiences

 12/17/20   Quincy Jones                                                        $33                 NA        Ticketing technology platform for music and events

                                                                                                              Blends broadcast technology and real-time gaming graphics to transform artists into digital avatars in a
 11/19/20                                                                       NA                  NA
                                                                                                              virtual world

 11/1/20                                                                       $165                 NA        Retailer of musical instruments

 10/27/20                                                                       NA                  NA        Developer of a digital discovery platform intended to change the music business with artificial intelligence

                                                                                                              Developer of a music streaming platform built for connecting fans directly with artists in familiar music
 10/23/20                                                                       ~$1                 NA
                                                                                                              player interfaces

 10/22/20                                                                       NA                  NA        Provider of a range of audio production services for film, TV, gaming and streaming

 10/21/20                                                                       $45                 NA        Developer of audio software for musicians, composers, producers & sound designers across all genres

 9/21/20                                                                       ~$12                 NA        Developer of an online music services platform designed to offer unlimited music streaming

 9/15/20                                                                        ~$5                 NA        Developer of speaker systems designed to offer quality audio for automotive and professional consumers

 9/11/20      Undisclosed                                                       ~$6                 NA        Operator of a lyrics interpretation platform that helps people share facts and insights about songs

 9/10/20                                                                        $9                  NA        Subscription-based audio content platform, offering audio journalism content through its app

  9/2/20                                                                        $50                $530       India's largest commercial music streaming service

               Notes:
               Sources: Capital IQ, Music Business Worldwide, PitchBook, Wall Street Research.                                                                                                                            35
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