[Excerpt From Think Equity Report]

Think Entertainment: Gaming
Virtual Goods: An Interview With The Founder And
CEO Of Live Gamer
THINK SUMMARY:

We had a chance to speak with Mitch Davis, the founder and CEO of Live
Gamer, one of the leading payment and ecommerce solution companies for
virtual economies serving more than 85 million users. The company sees
payment solutions as a commodity business and ecommerce suite (analytics,
merchandising, item management, and marketing) as much more valuable,
given its ability to drive up conversion rates and ARPPU for publishers. The
company is seeing a strong interest in the micro-transaction model from
traditional media companies (newspaper, TV, and films) to monetize their
content, which could significantly expand the market opportunity, which at
present seems to be largely focused on online gaming.

Live Gamer is one of the leading payment and ecommerce solution
companies for the virtual economies, akin to an SAP for real goods business,
according to Davis, powering 85 virtual economies and serving over 85
million users.

• The company is focused on online gaming but is seeing strong interest from
traditional media companies like newspaper, magazine, television, and film
studios in adopting a micro-transaction model to monetize their existing
content.

• According to Davis, the size of the online gaming market could be about $15
billion, and assuming a 7% take-rate, the market for ecommerce and
payment solutions could be about $1 billion currently and could grow to about
$2 billion in the next three to five years. Including the emerging opportunity
from the traditional media space, the addressable opportunity could grow to
about $3 billion over the next three to five years, according to the company.

….

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