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January 2018 HY Corporate Credit HY Multi Sector.Media. Cable & Satellite In the face of continued evolution of media consumption due to technology advances, we expected the pace of M&A announcements to ramp in 2017. In the end, activity was more muted than initially anticipated. but there were still a handful of notable deals announced during the year at reasonably healthy multiples. The chart below provides a sampling of the M&A that transpired. [Select 2017 (Announced) Media M&A Transactions Industry Date Announced Date Closed/ Anticipated Buyer Target Assets Purchase Peke Estimated Pr Multiple Combreed 243 slaloms .n 23 of lop 25 markets Rack, Broadcaumg 2/2/17 11/17/17 Crte,corn CBS Radio (46 market:total `54or. EV `8.4. 42 ciaions reach,r6 - 42% of the IrS and Seller. '8.6s VW IS) 1V &oadcaslog 5/8/17 1(118 Smdar Intx,ne - 313/4 of Food Network - 56 6On Buser. - 7s C17/181 Magat.nes 11/26/17 1018 Meredith Time AB Time assets int, SI. People. InStsle. etc. - 52 ebn Seller ILTMI Move Theaters 12/5/17 1018 Petal 2nd Largest odUaltor Si the VS mill 561 theatres & 7.315 screens - 53 6bn Seller r18) Buyer '7 3. l'181 Son Covent sopsn's DassoNt ton Hawn We expect 2018 to usher in increased M&A activity on the heels of welcoming capital markets conditions, reasonable leverage levels (generally speaking), and loosened government regulation. For TV, the completion of the spectrum auction and Sinclair & Tribune getting across the finish line should re-start deal-making. For radio, we could see pockets of assets come up for sale as 2 of the largest groups restructure. And newspapers are likely to continue to seek out economies of scale amidst an ongoing decline in print ad revenues. As alluded to above, from a balance sheet perspective, many Media / Business Services companies are in a much better place to navigate potential choppy waters today than they were heading into and during the last recession several years back (less leverage, lower cost of capital, extended maturities, more scale, more diversification, etc.). A slowdown in the overall economy and, in tandem, the advertising environment, would certainly hurt, but perhaps not as severely as before. Page 140 Deutsche Bank Securities Inc. CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) CONFIDENTIAL SDNY_GM_00232883 DB-SDNY-0086699 EFTA01385415