ACCUSTREAM RESEARCH: VIDEO PLATFORM, WORKFLOW CMS, PLAYERS AND PROCESSING TECH EXIT MULTIPLES POINT TO A POTENTIAL $2.7 - $5.3 BILLION M & A MARKETPLACE
October 14 2014
Seaside, CA Video software platforms, workflow CMS, media players and processing technologies operating independently prefigure an M & A deal marketplace worth $2.7 to $5.3 billion, according to an investment and acquisition analytics report by AccuStream Research.
Exit valuations going forward are informed by a trading range shown across $1.14 billion in 2006 - 2014 private market transactions with corresponding takeout multiples.
The report, Video Platforms, Players and Processing Tech 2006 - 2014: Exit Multiples and Transaction Outcomes, examines deal flow (by year, consumer and enterprise-facing solutions, business models, each entrant's CAGR financial performance), core competencies, plus comparisons to video and mobile adtech M & A.
Excluding publicly traded video tech providers (i.e. Brightcove, Neulion, QuMu, Tivo and others), private firms are predicted to deliver revenue of $1.8 billion in 2015 (framing a 2007 - 2016 estimated CAGR of 49.2%).
Sector participants include Anvato, Conviva, Elemental Technologies, Encoding.com, JWPlayer, DaCast, Kaltura, Piksel, USTREAM, RAMP, Taboola, ThinkAnalytics and dozens more contributing to topline sector totals.
Revenue multiples have averaged 2.24x 2012 - 2014, whereas 24 deals analyzed over the 2006 - 2014 period exhibit a combined 2.83x comparable. Consumer-looking video platforms are forecast to generate $1.3+ billion in 2015 revenue, while enterprise counterparts are on track to deliver $450 million in MRR/SaaS-based topline.
High CAGR video platforms average 3.33x revenue, while consumer-facing solutions targeting the IPTV/OTT, entertainment and media content verticals have traded for 3.48x multiples of revenue. Higher exit multiples were paid by Twitter for SnappyTV (social video sharing) and by Telstra for Ooyala.
Publicly traded video platforms average 1.8x forward revenue, with a combined market cap of $1.5 billion (excluding cash and short term securities).
Video platform and workflow technologies are priced against monthly recurring fees or usage, billing models public markets deem more certain compared to higher risk (albeit higher reward) revenue share, impression-driven video and mobile adtech averaging .63x revenue.
AccuStream Research produces investment grade reports bridging virtual video, Internet music radio programming, download entertainment, video/audio advertising, inventory and spend utilizing cross-platform CMS, video and mobile adtech revenue and M & A valuations, CDN and integrated (IPTV/OTT/Cross-device) media optimization platform revenue, M & A and asset analytics.
Contact: Paul A. Palumbo, email@example.com