GP Bullhound's Q4 2021 Digital Media Sector Update highlights the ongoing redemption of digital publishing companies, with a decrease in deal activity and slow growth prospects. However, SPAC IPOs have provided liquidity for long-time investors, and M&A activity has continued to tick up with marquee deals taking place. Brands are increasingly engaging with NFT projects and communities, with NFIs and Web3 digital environments providing new opportunities for collaboration. The imminent arrival of a new virtual environment will disrupt our way of life and provide new opportunities for collaboration. The value of music rights is continuing to grow, with major music artists' catalogues being sold for high prices. Investment in music is incentivized, with investors seeking to secure immediate liquidity when the value of these assets is at an all-time high. GP Bullhound's recent activity includes investments in Cheddar, Discord, and SpeedTree.