VALUATION - Constant Contact...VALUATION $60,000,000 TV LIBRARY (SECTION 5) The television library...

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VALUATION $60,000,000 TV LIBRARY (SECTION 5) The television library is valued at $60 million dollars. This is arrived at by deriving the value it is worth to advertisers over a 3-year period. There are several categories that are of great value to advertisers. We have used the world “Deliverables” a term used in advertising to denote advertising dollars that are earmarked for a particular company. We had accounts being set up with Starcom ad agency (a multibillion dollar ad agency) to place advertising in our TV shows. Our valuation is based on the quantification of the value of our television library to advertisers for 3 years. Starcom was poised to spend (Deliverables) approximately $20,000,000 for the first year on advertising in our shows on FOX TV if we could have filled the order. The required upfront fee to FOX TV was approximately $1,000,000 for a full year of air time. Which we did not have this costly television air time fee at the time. This is just one example we had many deals come across our table that required more working capital to fill. We extrapolated the advertising revenue over a 3-year period to arrive at the $60,000,000 valuation. Because of the lack of working capital and not having enough money to guarantee a sustained production for 1 year we could not fill this order. Things are changing now with the interest of investors banks, and brokerage firms. We will revisit these advertisers 1 st quarter after we receive our working capital funding. The working capital for each week for a major station such as FOX TV is $20,000 each week. Over the period of a year station fees cost are approximately $1,000,000 but the profit each week is approximately $400,000 for each day and over the course of 1-year airing just one day a week the profit is about $20, 000,000, (Twenty Million dollars). The average cost of a commercial on a show like “Entertainment Tonight” is $100,000. In our first full year of national distribution our commercials will sell for $10,000 per 30 second spot. A 24-hour channel like DirecTV or Dish would provide our company with hundreds of thousands of advertising spots. This in turn would bring hundreds of millions of dollars. REVENUE BREAKDOWN 2080 Commercials Per year for 1 TV show OUR COMMERCIALS SELL FOR $10,000 per 30 seconds. 40 COMMERCIALS PER 1-HOUR Episode. $10,000 X 40 COMMERCIALS PER 1-Hour Episode. 40 commercials x $10,000=$400,000 per episode. 52 weeks X $400,000=$20,800,000 per year.

Transcript of VALUATION - Constant Contact...VALUATION $60,000,000 TV LIBRARY (SECTION 5) The television library...

Page 1: VALUATION - Constant Contact...VALUATION $60,000,000 TV LIBRARY (SECTION 5) The television library is valued at $60 million dollars. This is arrived at by deriving the value it is

VALUATION

$60,000,000 TV LIBRARY (SECTION 5)

The television library is valued at $60 million dollars. This is arrived at by deriving the value it is worth to advertisers over a 3-year period. There are several categories that are of great value to advertisers. We have used the world “Deliverables” a term used in advertising to denote advertising dollars that are earmarked for a particular company. We had accounts being set up with Starcom ad agency (a multibillion dollar ad agency) to place advertising in our TV shows. Our valuation is based on the quantification of the value of our television library to advertisers for 3 years. Starcom was poised to spend (Deliverables) approximately $20,000,000 for the first year on advertising in our shows on FOX TV if we could have filled the order. The required upfront fee to FOX TV was approximately $1,000,000 for a full year of air time. Which we did not have this costly television air time fee at the time. This is just one example we had many deals come across our table that required more working capital to fill.

We extrapolated the advertising revenue over a 3-year period to arrive at the $60,000,000 valuation. Because of the lack of working capital and not having enough money to guarantee a sustained production for 1 year we could not fill this order. Things are changing now with the interest of investors banks, and brokerage firms. We will revisit these advertisers 1st quarter after we receive our working capital funding. The working capital for each week for a major station such as FOX TV is $20,000 each week. Over the period of a year station fees cost are approximately $1,000,000 but the profit each week is approximately $400,000 for each day and over the course of 1-year airing just one day a week the profit is about $20, 000,000, (Twenty Million dollars).

The average cost of a commercial on a show like “Entertainment Tonight” is $100,000. In our first full year of national distribution our commercials will sell for $10,000 per 30 second spot. A 24-hour channel like DirecTV or Dish would provide our company with hundreds of thousands of advertising spots. This in turn would bring hundreds of millions of dollars.

REVENUE BREAKDOWN

2080 Commercials Per year for 1 TV show

OUR COMMERCIALS SELL FOR $10,000 per 30 seconds.

40 COMMERCIALS PER 1-HOUR Episode.

$10,000 X 40 COMMERCIALS PER 1-Hour Episode.

40 commercials x $10,000=$400,000 per episode.

52 weeks X $400,000=$20,800,000 per year.

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Starcom ad agency (Deliverables)

52 WEEK SEASON (1 Year)

Commercial Sales $20,800,000

*Cost (Labor, Editing, & Station fees) -1,040,000

$19,760,000 (If we had the working capital for a year).

We expect to increase our prices by 25% per year for the next 3 years due to network notoriety,

added stations, and network popularity. These figures do not take into account streaming revenue,

on demand revenue, merchandising, added stations, licensing rights, and the revenue from having

a 24-Hour Satellite Channel on AT&T DirecTV and Dish Network. Revenue from these 24-Hour

Satellite stations is listed below and is not included in the TV Video Library valuation. Keep in

mind the revenue projections are for just one station. We have many additional stations available to us

depending on demand. The average cost of a commercial on a show such as Nickelodeon or the

Disney Channel is over $75,000 per commercial during the Christmas season.

TV Video Library Valuation Considerations

10,000 plus hours of: 30-minute TV Shows 60-minute TV Shows Segment content Behind the Scenes Social Media snippets Celebrity Content Children’s Content Business TV Entrepreneur TV Healthy Living Beauty TV Health foods Shark Tank Spinoffs 24-Hour Direct TV & Dish Network satellite channels. www.Directv.com www.dish.com

We are also in acquisition talks with with AT&T Entertainment.

DirecTV and Dish have offered us our own 24 hour Channels, we are responsible for a carriage fee that ranges from 250k to a half million dollars..

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TV SERIES (PARTIAL LIST)

• Celeb Entertainment TV www.mworldtv.com

• K-World TV (Kidz World TV) www.kworldtv.com

• The Best of CES TV Specials www.thebestofces.com

• Business and Entrepreneur TV http://www.venture101.net

• Asia Business TV http://www.tvasia.co/

• Health & Beauty TV http://www.bestbiztv.com/beauty---lifestyle.html

• Healthy and Fun Food TV http://www.kworldtv.com/kids-food.html

• Luxury Travel TV http://www.bestbiztv.com/the-best-hotels-1.html

Additional revenue streams for our TV Video Library.

Ad Revenue

Our own Proprietary Streaming site We can build our own steaming site similar to Hulu and Netflix the concentrates in the areas of celebrities, Children’s content, Business TV, Asian TV, Consumer Electronics and others.

LICENSING TO STREAMING COMPANIES.

Netflix Hulu Amazon Streaming Google Disney Nickelodeon

AD AGENCY Sales Two multibillion dollar Ad agencies that we have been speaking with, such as Starcom www.starcom.com and OMD www.omd.com , can place commercial ad spots for 30 seconds within our 1 hour programs to target the different demographics of the many TV shows that we have. We have interest from companies represented from both agencies. Each agency represents hundreds of the most famous brands in the world from McDonald’s to Nike to Toyota to many others. We have hundreds of additional Ad agencies we have yet to approach. We have had great success in the few ad agencies that we have presented with our properties.

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$19,760,000

(DEAL DELAYED)

Starcom ad agency

http://www.starcomww.com/

“Deliverables to World Media”

Starcom, a billion-dollar ad agency, has stated after reviewing our TV shows and content that they

would place commercial “deliverables” in our next season. Starcom just wanted us to guarantee that

we had the funding and working capital to stay on air for the whole year. The catch 22 for our company

is that we needed bridge funding (working capital) for 60 to 90 days until the advertising checks start to

com. Most advertisers in the TV business pay 30 to 90 days after a program airs and proof of the

shows airing are listed in the TV Guide, or in another acceptable way. We need the working capital to

sustain us during this period. An additional point is that major stations such as FOX TV and CBS require

independent TV Networks such as ourselves to pay for the whole season of air time (at least 12 weeks)

upfront.

This is one deal that was delayed. There are dozens of deals and prospects that we had to turn down because we did not have enough working capital for the full year that major advertisers require. Some of the majors even ask to check your bank account to verify you have the working capital for a year. This is because the TV business is expensive, but one of the most profitable business in the world for successful media companies. and the ad agencies don’t want to have to explain to a client why they gave advertising dollars to any company that did not have the staying power or finances for a year. In our case this would be having at least several hundred thousand dollars working capital and station fees to start off with. This is why we need additional working capital. Ad agencies have their accounts reviewed once a year. Ad agencies want to build loyalty with viewers. This is why they only want to advertise in a TV shows that can show the potential to build long term loyalty for at least a year. Not doing so could possibly cause them to lose a client or account. This is why ad agencies are paid to vet platforms and paid 15% for any advertising they place. We could ask a major TV network to foot the TV station fees but the big TV networks (CBS, NBC, ABC,

etc.) would demand 90% of the advertising dollars that came in. Our business model is to go out and get

our own advertisers and keep 100% of the profits. Every year the ad agencies’ clients’ review their

accounts to see where they want to place their advertising money to see if they will retain the account.

All we need to do to close deals like this is to show we had working capital for a year. One caveat is that

each year the ad agency must spend or place their money somewhere before the year is up. We must

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resubmit each cycle because the range and mix of advertisers’ needs may change. Therefore, we are

looking for working capital to support this lucrative scenario.

Here is a list of the “Deliverables” 30 second ad spots agreed to be placed in our programs.

(Assets other)

Deliverables = 2080 thirty second Commercials Per year for 1 TV show.

Disney Channel, Disney Jr. Disney XD PetSmart Mattel Toys Big Hearts Pets – the largest standalone pet-food maker in the United States. Their brands include: Meow Mix Kibbles’n Bits, Milk-Bone, 9 Lives, Natura Balance, PupPeroni, Gravy Train, Nature’s Recipe, Canine carry outs, Milos Kitchen, Snausages, and Samsung Smuckers (Breakfast products)

Namestee Hair products Burrell Advertising agency (Pending) Currently speaking with the CEO. Miller Brewing Company (must be renewed) Red Rock Casino Casio Kodak

STOCK OFFERING.

In addition, we have a brokerage firm, a Finra SEC Qualified firm, Red Tail Capital in New York, http://www.redtailcapitalmarkets.com/, who has been enlisted to conduct a private offering. They are one of several firms setting up a stock offering for us for $100,000,000. Yes, One hundred million dollars. We expect to start this raise later this year. We are courting early investors now.

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Attached is an excel file base of the projections for the stock offering.

Any moneys loaned to us from banks will have senior rights to any profits that come in.

SATELLITE DIRECT TV & DISH NETWORK

We have been offered our very own 24-Hour Satellite channel by AT&T Entertainments DirecTV and Dish Network. We will have a total of 262,080 commercials for one year for each channel. We can sell our ads or commercials for as little as $500 dollars per 30 second spot to make $100,000,000. We can easily make over 100 Million dollars. This is the norm of all 24-hour major satellite television channels. The station fees, or carriage rates, for the stations are up to $1 million per year. This is part of the working capital request. Please keep in mind that our commercial will sell for $10,000 to the big advertisers.

WORLD MEDIA EMPIRE DIRECT TV & DISH RATES

CHEAPEST SWEETSPOT

AD RATES 100$ 1,000$ 5,000$ 10,000$ $500

Program Time and Commericals

1 HOUR = 30 Commercials 3,000 30,000 150,000 300,000 15,000

24-Hours = 720 Commercials 72,000 720,000 3,600,000 7,200,000 360,000

7 DAY WEEK = 5,040 Commercials 504,000 5,040,000 25,200,000 50,400,000 2,520,000

1 YEAR = 262,080 Commercials 26,208,000 262,080,000 1,310,400,000 2,620,800,000 131,040,000

WORLD MEDIA EMPIRE, INC.

5/4/18

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WORLD MEDIA EMPIRE, INC.

INVESTMENT AND VALUATION CONSIDERATIONS

We are World Media Empire a Global Television Media Company. www.worldmediaempire.com (general

programming) www.kworldtv.com (kid's programming). We are content providers for television and

media companies with a variety of programs including celebrity, children, teens, animation, business,

health, beauty, news, sports, and film. We have over 100 different ORIGINAL television series, many that

are up and running. We are the biggest unacquired Television Media company in the world. We are in

negotiations for up to 10 Television Networks and Channels from such platforms as FOX, AT&T/DirecTV,

DISH Network, Time Warner, Comcast. In the coming months, we will be engaging in negotiations with

over 20 cable/Satellite providers, On Demand, Streaming and over 200 television Broadcast stations to

carry our content. Over the years, we have been building our brand, increasing our celebrity library, and

presenting our show to various advertising companies and media buyers. We are gearing up for our

satellite network launches.

Investor Incentives

WE EXPECT TO GO PUBLIC AFTER THE FIRST 2 YEARS OF REVENUE.

WE WILL OFFER DIVIDENDS BASED ON ADVERTISERS, PRODUCT PLACEMENT, AND SUBSCRIBER PROFITS.

WE HAVE OVER 50 INTERESTED ADVERTISERS WITH TOTAL BUDGETS OF BILLION DOLLARS.

***TOP 20 SELLING POINTS & VALUATION CONSIDERATIONS ABOUT OUR COMPANY. ***

1.) World Media Empire is primed to be one of the Largest Global Television Media Conglomerates. We

are positioned to be on the same par worldwide as Disney/ABC, Viacom, FOX TV, NBC Universal, CBS and

few others. www.worldmediaempire.com

2.) We will be only the 10th Media Company ever to be given multiple (3 or more) stations/channels based

on original content brought to AT&T, Dish, Comcast and others.

3.) Every conglomerate that owns multiple channels is making multiple billions of dollars.

4.) FOX TV, AMC Network, AT&T, DISH, Time Warner and Comcast and other networks and stations will air

our programming around the world. We are currently setting up distribution.

5.) We are also in acquisition talks with one of the top 10 companies in the world (excluding the oil, car,

and energy companies) with (AT&T Entertainment/Direct TV- NDA Signed). The revenue of AT&T/Direct

TV was over 146 billion last year and they have a mobile platform that reaches of over 126 million

subscribers. We expect tohave access to AT&T’s exclusive mobile platform for our television shows.

6.) Dish Network and other stations has agreed to give us several satellite channels which we will be

launching worldwide in the coming months. Dish is one of the largest satellite platforms in the world. All

of these channels are worth billions to content providers such as ourselves.

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7.) There are only 9 televisions, satellite/cable daily original content providers in the world with multiple

(3 or more) stations/channels for different demographics in the world. World Media Empire will be the

10th. Below are the yearly revenues from the 9 companies.

8.) All of these company’s multi-channel/stations make multiple billions of dollars with the average being

15 billion dollars per year and the most being AT&T/Direct TV with 146 Billion dollars in revenue made last

year alone. AT&T is far bigger than Google. WE EXPECT TO BE JOINING AT&T AND OTHER STATIONS AS A

UNIQUE MULTI-STATION CONTENT PROVIDER WITH THE POTENTIAL TO MAKE BILLIONS.

9.) Disney's television media networks (most which is children’s entertainment) earned about 22 billion

dollars last year. Total revenue including resorts and theme parks was 55 billion dollars. We are poised to

compete directly with Disney’s Satellite/Cable and mobile media platforms with our children’s

programming Kidz World TV, Kidz World JR TV, and Kidz World Animation. www.kworldtv.com

10.) We will be the first minority owned company outside of Bob Johnson's BET (Which was sold for over 2

Billion dollars to Viacom) to be given multiple 24-hour major cable/satellite channels. This is based on the

original content they created before the acquisition of the station or the input of major

fundingwww.worldmediaempire.com

11.) Kids influence over 1.2 Trillion dollars of spending per year. Our Kidz World TV networks and

programs www.kworldtv.com targets children, teens, and their parents.

12.) We have a vast array of celebrity media and television properties and TV shows for the children's,

teens, and adult markets (over 100 TV Series) which are reflected in our high valuation. Our kid's market

includes, Kid's Junior 7 and under, kid's 7 and up, kid's celebrities, a Sesame street styled show called K-

Street, mascot character shows, kids dance TV series as well as a dedicated animation channel.

13.) Every major television network that we present our content to is willing to carry our programming or

engage in talks. Pending the mutual agreement of standard carriage rate because of the quality,

uniqueness, and celebrity and Kid’s content we expect to sign many more agreements over the next

several months.

14.) Our licensed content providers include Disney, ABC, FOX TV, Netflix, Sony Pictures, Warner Bros, and

many more.

15.) All our content will be monetized and made available to all mobile platforms, On Demand, Streaming,

and Social Media. We will also have subscriber bases which will be another revenue stream.

16.) We have multiple revenue streams which will be reflected off our TV shows from subscriptions, family

resorts, hotels, theme parks, to toys and kid merchandise to family restaurants.

17.) We will have apps that will reflect our TV content and allow users and fans of celebrities to engage

each other.

THE ONLY MULTI-CHANNEL SAT/CABLE PROVIDERS TOP 5 SATELLITE/CABLE PLATFORMS

DISNEY 55 BILLION ATT/DIRECT TV 146 BILLION

FOX 30 BILLION COMCAST 80 BILLION

NBC UNIVERSAL 28 BILLION CHARTER COMMUNICATIONS

29 BILLION

CBS 13 BILLION TIME WARNER 29 BILLION

VIACOM 13 BILLION DISH NETWORK. 15 BILLION

HBO 5 BILLION

HGTV 3 BILLION

AMC NETWORKS 2.5 BILLION

CNN 1.6 BILLION

WORLD MEDIA EMPIRE *****(TBD)*****

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18.) We also are looking to engage Netflix, Hulu, Amazon Video, Roku TV, Apple and Google about our

content over the coming months.

19.) We have had an offer of 6 million dollars for 12% of the company a few years ago, which we turned

down on the advice of our attorney because it was below our future expected valuation. We also have a

standing 10 million dollars offer for 8% of the company on the condition that we would agree to merge our

company with a particular advertising company. Offers are still coming in.

20.) We also have had a licensing offers for millions of dollars over the years.

21.) MGM Television is the latest company to begin talking with us about our content.

www.thebestofces.com (Consumer Electronics Show & Best Businesses) www.mworldtv.com (Celebrity Programming) www.tvasia.co (Venture Asian TV Programming) www.kworldtv.com (children's programming, Animation,) www.venture101.net (Venture TV) www.tvstationlist.com

Below is a partial list of potential advertisers and people we have personally spoken to about advertising in our network. These advertisers have expressed interest in product placement, cross promotions, ad placement and partnerships media platforms. Scripps Network is the Number 2 cable station and one of the biggest advertisers in the world for targeting women, moms and parents 24-54. They are a key target demographics for advertisers and subscribers to our programs. Also listed are additional potential advertisers that we have presented our media properties to and who are interested in advertising with us. There are billions of potential advertising dollars that we plan on procuring.

Pam Kaufman - Chief Marketing Officer | President, Consumer

Products at Nickelodeon

Jill Barad – Chairman of the Board and

Chief Executive Officer at Mattel, Inc.

Anne Kehoe - Vice President of Toys at Walmart

Allison Page,

General Manager,

U.S. Programming

& Development

Mark O’ Malley

Owner of Millennium

Park’s Park Grill

Restaurant

Greg Regis, SVP of National

Advertising Sales for Travel

Channel & Great American

Country Channel

Jon Steinlauf is

President of National

Ad Sales and Marketing

for Scripps

Jonathan and

Drew Scott HGTV

Property Brothers

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Walmart Casio

McDonald’s Mitsubishi

Disney Mann’s

Procter & Gamble Crunch Pak

PetSmart Spinmaster

Scripps Network the #2 cable and advertiser in cable

Pillow Pets

Sunkist

Conquer Network Marvel

Starcom Sparks Kodak

Mattel Just Pretend

Fisher Price Wow Wee Toys

Scripps New show (Chicago Property Flip)

Legos

Batman

Del Monte Moose Toys

Nickelodeon DC Comic & Movies

Universal Hasbro