CY2023E EBITDA
$69.08 – $89.05
$77.93 – $91.67
$95.00
Selected Precedent Transactions Analysis. Using publicly available information, Allen & Company reviewed financial data relating to the following 11 selected transactions involving target companies with operations in the interactive entertainment industry that Allen & Company considered generally relevant for purposes of analysis, collectively referred to as the “selected transactions:”
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Announcement Date
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Acquiror
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| |
Target
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| January 2022 | | | Take-Two Interactive Software, Inc. | | | Zynga Inc. | |
| February 2021 | | | Electronic Arts Inc. | | | Glu Mobile, Inc. | |
| December 2020 | | | Electronic Arts Inc. | | | Codemasters Group Holdings plc | |
| September 2020 | | | Microsoft Corporation | | | ZeniMax Media, Inc. | |
| August 2020 | | | Tencent Music Entertainment Group | | | Leyou Technologies Holdings Ltd. | |
| November 2017 | | | Aristocrat Leisure Limited | | | Big Fish Games, Inc. | |
| April 2017 | | | DoubleU Games Co., Ltd. | | | DoubleDown Interactive Co., Inc. | |
| July 2016 | | |
Shanghai Giant Network Technology Co., Ltd.
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| | Playtika Holdings, LLC | |
| June 2016 | | | Tencent Holdings Ltd. | | | Supercell Oy | |
| November 2015 | | | Activision Blizzard Inc. | | | King Digital Entertainment Public Limited Company | |
| October 2013 | | | SoftBank Group Corp. | | | Supercell Oy | |
Allen & Company reviewed, among other information and to the extent publicly available, transaction values of the selected transactions, calculated as the enterprise values implied for the target companies involved in the selected transactions based on the consideration paid or payable in the selected transactions, as a multiple of the latest 12 months EBITDA of the target company as of the applicable announcement date of such transaction. Financial data for the selected transactions were based on publicly available Wall Street research analysts’ estimates, public filings and other publicly available information. Financial data of Activision Blizzard was based on the Activision Blizzard forecasts, public filings and other publicly available information.
The overall low to high latest 12 months EBITDA multiples observed for the selected transactions were 5.6x to 29.9x. Allen & Company then applied a selected range of latest 12 months EBITDA multiples derived from the selected transactions of 14.0x to 20.0x to the latest 12 months (as of December 31, 2021) EBITDA of Activision Blizzard based on the Activision Blizzard forecasts. This analysis indicated the following approximate implied equity value per share reference range for Activision Blizzard, as compared to the merger consideration:
