1. SPT Strategic Initiatives
February 1, 2008
Confidential Draft

2. Embassy Row Overview History of Success Current SPE Relationship
Value Considerations
Creator of numerous successful game and reality shows including:
The Power of 10 on CBS
The 9, online with Yahoo!
Buzz Session with Yahoo!
World Series of Pop Culture on VH1
Grand Slam on GSN
Chain Reaction GSN
Boy Meets Grill on Food Network
SPE’s existing deal with Davies / ER runs through Jan 2, 2009
During this term SPE:
Funds $1.2MM of Embassy Row overhead
Recoups up to $600K in EP Fees
Receives all copyright to shows created by ER
ER derives its profits from
Executive Producer fees
Mark-up on overhead charged to shows
Ongoing profit participation
By acquiring ER, SPE:
Shifting Davies profit focus to the creation of new formats
Extending the relationship beyond the current term
Acquiring ER’s existing profit streams
Embassy Row 2007E profit of $3.4MM implies a value of $20MM - $40MM (1)(2)
With successful new shows, value would be significantly higher
SPE submitted an LOI to acquire ER for $20MM up-front + up to $28MM in earn-outs
A final deal may require up to $100MM of total consideration
Note: (1) DCF of $3.4MM in perpetuity at a 16.5% discount rate
(2) Based on a marekt multiple of 11.7x EBITDA of $3.4M

3. Format Development and Acquisition
Embassy Row Go-forward Operations
Existing ER slate will be extended into syndication and formats sold abroad
New formats will be based on SPE library product, new U.S.-based development, and acquired international formats
Limited incremental investment will be required to expand the team, including 3 people acquiring international formats and 3 people developing additional show concepts in-house
The business will be managed as an independent unit within SPT with a dedicated P&L
ER will leverage 2waytraffic’s existing sales force to sell ER developed formats internationally
ER will hire 3 additional sales people to sell ER formats worldwide
Format Development and Acquisition
Management and
Reporting
Distribution with
2waytraffic
Distribution without
2waytraffic

4. Crackle Update
The Grouper acquisition provided a strong foundation for growth
Large and growing audience (currently 8 MM monthly unique viewers)
Platform to market and distribute content online, reach a younger demo, create new distribution, and capture a greater share of growing online ad spend
Crackle re-launch positioned the service for continued growth in a highly competitive market
Shifted focus from technology to content and programming to differentiate the service
Emphasized higher quality, short-form video to attract top talent and advertisers
Going forward, Crackle will serve as the umbrella brand for our digital networks
Creates greater scale by focusing all content and product development on a single brand; all original content initially airs on Crackle
All channels are distributed by a single organization
Leverages previous investment in Grouper / Crackle technology and audience

5. Crackle Provides a Central Destination for our Networks
Films
Television
Short-form
Channels
Films/Shows
Spiderman
Talladega Nights
MIB
Crouching Tiger Hidden Dragon
Silver Spoons
The Facts of Life
I Dream of Jeannie
Charlie’s Angels
VIP
The Groundlings
Judgement Day
Penn Says
Medical Island
Mr. Deity

6. Note: Next page was drafted by Jim Underwood
Steve Brunell will be sending two new pages on Thursday:
One page overview of FUN’s business
One page explaining the rationale for a GSN/FUN merger
Jim will integrate those pages as well

7. GSN / FUN Technologies Investment Opportunity
FUN Overview
Fit with GSN
Potential Transaction
Offers leading casual games across platforms (online, mobile, interactive TV)
Provides private label gaming systems and services for AOL, MSN, NASCAR.com
2008E Revenues: $112.7MM
2008E EBITDA: $12.6MM
Estimated 20% CAGR for revenues through next 4 years
Extends GSN into new, faster growing revenue streams, including interactive TV
Casual game users skew female, brings a new entertainment offering to GSN’s existing demo
Leverages GSN game show brands to create new casual games
Creates significant cross promotional opportunities
Liberty owns 100% of FUN Technologies and 50% of GSN
Liberty recently acquired the remainder of FUN at a $206MM total implied valuation
Liberty is considering merging GSN with FUN
In this scenario, SPE would invest to maintain a 50% interest in the combined company
SPE may have the opportunity to invest in a combined GSN / FUN
$100 - $150MM would maintain our 50% stake in the company