Presentation of Macquarie Capital to the board of directors of Alloy, Inc.

Project Lexington

Presentation to the Board of Directors

November 16, 2009

DRAFT

Exhibit (c)(2)

STRICTLY CONFIDENTIAL

Important Notice

DRAFT

"Macquarie Capital" refers to Macquarie Capital Group Limited, its worldwide subsidiaries and the funds or other investment vehicles that they manage.

Macquarie Capital Group Limited is an indirect, wholly-owned subsidiary of Macquarie Group Limited.

This document and its contents are confidential to the person(s) to whom it is delivered and should not be copied or distributed, in whole or in part, or its contents

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the recipient) is hereby expressly authorized to disclose to any and all persons, without limitation of any kind, the tax structure and US federal income tax

treatment of the proposed transaction and all materials of any kind (including opinions and other tax analysis) if any, that are provided to the recipient related to

the tax structure and US federal income tax treatment.

This document does not constitute an offer to sell or a solicitation of an offer to buy any securities. It is an outline of matters for discussion only. You may not

rely upon this document in evaluating the merits of investing in any securities referred to herein. This document does not constitute and should not be interpreted

as either an investment recommendation or advice, including legal, tax or accounting advice.

Future results are impossible to predict. Opinions and estimates offered in this presentation constitute our judgement and are subject to change without notice,

as are statements about market trends, which are based on current market conditions. This presentation may include forward-looking statements that represent

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accuracy or completeness. In preparing these materials, we have relied upon and assumed, without independent verification, the accuracy and completeness of

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Nothing in this document contains a commitment from any member of Macquarie Capital to subscribe for securities, to provide debt, to arrange any facility, to

invest in any way in any transaction described herein or otherwise imposes any obligation on Macquarie Capital. Macquarie Capital does not guarantee the

performance or return of capital from investments. Any participation by Macquarie Capital in any transaction would be subject to its internal approval process.

None of the entities noted in this document are authorized deposit-taking institutions for the purposes of the Banking Act 1959 (Commonwealth of Australia). The

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otherwise provide assurance in respect of the obligations of these entities.

CIRCULAR 230 DISCLOSURE

Macquarie Capital does not provide any tax advice. Any tax statement herein regarding any US federal income tax is not intended or written to be used, and

cannot be used, by any taxpayer for the purpose of avoiding any penalties. Any such statement herein was written to support the marketing or promotion of the

transaction(s) or matter(s) to which the statement relates. Each taxpayer should seek advice based on the taxpayer's particular circumstances from an

independent tax advisor.

STRICTLY CONFIDENTIAL

Contents

Process and Next Steps

Public Market Valuation

Potential Partners

Executive Summary

PAGE

STRICTLY CONFIDENTIAL

Executive Summary

DRAFT

Macquarie Capital Advisors (“Macquarie”) is pleased to have this opportunity to present to Lexington's Board of

Directors

We have been engaged in a strategic dialogue with Lexington's management since May

In addition to other strategic opportunities, we have been very active in helping define and shape the strategy for the

“Lexington Digital Network" to leverage Lexington's incumbent leadership in youth content

—

Potential structuring solutions

—

Financing alternatives

—

Potential partners

Focusing Lexington's business and executing the strategy requires strategic and financial partnership

Saban Capital is enthusiastic about the Lexington opportunity based on their track record and perceived core

competencies

—

Have hired advisors and submitted a targeted due diligence request list

—

We expect to receive a written proposal the week of 11/23

Saban Capital's interest in partnering with Lexington is a timely catalyst to formally evaluate alternatives with the

Board of Directors

Macquarie has assembled a senior team and our work is well underway. With endorsement from the Board of

Directors we will engage with management to prepare a comprehensive review of alternatives

STRICTLY CONFIDENTIAL

Executive

Summary

STRICTLY CONFIDENTIAL

Macquarie’s Senior Execution Team

Dedicated to Lexington

Brian Pope

Head of US TMET M&A

New York

11 years M&A experience; 6 years in media and internet

Joined Macquarie in September 2008

Formerly at JPMorgan 1998-2008

Extensive corporate finance experience including public

and private capital raising, M&A, restructuring and

principal transactions

Representative transactions include:

–

News Corp.’s acquisition of Dow Jones

–

NBC Universal’s acquisition of Oxygen Media

–

Advisor to Time Warner on formation of the CW

Network

–

Dow Jones’

acquisition of MarketWatch

–

Sale of Mercator to Ascential Software

–

Lionsgate’s acquisition of Artisan Entertainment

BS in Finance from NYU Stern School of Business

15 years of M&A, LBO, private equity and financing

experience

Joined Macquarie in December 2008

Formerly

Lehman

Brothers

1998

–

2008

David has executed over $20bn of financings and $25bn of

advisory assignments for companies across a broad set of

industries including industrials, media, business services,

healthcare, retail and energy

Representative media transactions include:

–

LBO of Asurion Corp by WCAS, MDP and Providence

–

LBO of Univision by private equity consortium

–

LBO of West Corp by Thomas H. Lee Partners

–

Acquisition of the Maiden Group PLC by Titan Outdoor

–

Warner Music Group IPO

MBA from Columbia Business School

David Baron

Head of US Financial Sponsors Advisory

New York

David and Brian, together with 26 years of M&A experience, will personally

handle all aspects of this transaction

STRICTLY CONFIDENTIAL

Spectrum of Lexington’s

Strategic Alternatives

Execution risk

to achieve

required

equity returns

Achieve

control

premium

Reposition

business out

of the public

eye

Access to

additional

capital to

invest in

business

Financial Buyer

Buyer appetite for

exposure to

disparate portfolio

of businesses

Piecemeal sale

more likely

Achieve control

premium and

value for synergies

Strategic Buyer

Significant distraction

and execution risk

Tax inefficient

Immediate use of

proceeds?

Valuation of

distressed

businesses,

especially in light of

recent performance /

outlook

Shrinking an already

small public company

Shareholder appetite

/ support

Focus on most

attractive / lucrative

businesses

Raise capital for

organic and M&A

investment

Divest Non-Core

Assets to Focus on

Media Segment

Predictability and

visibility into future

earnings

Small-cap public

company

Disparate portfolio of

businesses

Vulnerable?

Does not address

strategic limitations

No disruption

Cash on hand to

pursue tuck-in M&A

and other

investments

Status Quo

Considerations

Benefits

Valuation

Structure

Investor appetite for

exposure to

disparate portfolio

of businesses

Opportunity cost of

using cash for

something more

strategic

Does not address

strategic limitations

Significant capital

on sidelines

seeking

opportunities

Could be done in

conjunction with

other alternatives

(e.g. share

repurchase, asset

sales)

Value added

expertise from

partner

Provides a use for

cash on hand

Could use modest

leverage to increase

amount of capital

returned

Could structure as

share repurchase or

special dividend

Minority Investment

from

Strategic or Financial

Partner

Return Capital to

Shareholders

Sale of Company

STRICTLY CONFIDENTIAL

Potential Partners

DRAFT

STRICTLY CONFIDENTIAL

Potential Capital Partners

Strauss Zelnick

Terry Semel

Windsor Media

Michael Eisner

$3.6 billion

(2)

Haim Saban

$6.0 billion

(1)

Amir Malin

$2.2 billion

Josh Steiner

Stanley Golden

Golden Touch Media

Michael Lambert

Lee Masters (Jarl Mohn)

Lee Masters

Bob Pittman

Pilot Group

$1.2 billion

Bob Wright

$12.2 billion

Fund Size

Dick Parsons

Key Operating Principal

Firm

DRAFT

Qualia invests capital on behalf of Canyon Capital Advisors

Approximate net worth

STRICTLY CONFIDENTIAL

Potential Strategic Partners

De Agostini Editore

–

publishes in 13 languages and in 30 countries. Its activities are focused on the

organization and dissemination of knowledge

Zodiak Entertainment

–

produces over 5,200 hours of programming each year for television and other media;

has more than 200 shows aired in multiple countries; and 3 broadcaster clients

Antena 3 de Televisión

–

Spanish national radio and television broadcasting station

Mikado Film

–

Italian company that distributes high-quality cinematographic and innovative artistic material

Boroli Family, Drago

Family (100%)

FremantleMedia is one of the largest international creators and producers of entertainment brands in the world,

with leading prime time drama, serial drama, entertainment and factual entertainment programming in over 40

territories, including the UK, the US, Germany, Australia, France, Italy, Spain, Portugal, Scandinavia, Latin

America and Asia

Entertainment

–

Idols, Got Talent, Thank God You’re Here, Soccer Prince and The Prettiest Girl

Game Shows

–

Distraction, PokerFace, The Price is Right, Card Sharks, Sale of The Century and Family Feud

Drama

–

Bianca, The Bill, Forbidden Love, IT Crowd, and Neighbors

Lifestyle

Factual

–

Farmer

Wants

Wife,

How

Clean

your

House?,

The

Unteachables

and

Grand

Designs

Subsidiary of RTL

Group (90% owned by

Bertelsmann AG)

Company

Key content initiatives include production and strategic collaboration in areas such as gaming, movies, animation,

music, broadcast, DTH and user-generated content, amongst others

Internet & New Media

–

BIGFlix.com, BIGADDA.com, Zapak, and Jump Games

Filmed Entertainment

–

BIG Pictures, BIG Cinemas, Adlabs, BIG Animation, BIG Music & Video, BIG ND

Studio, BIG Synergy, BIGOYE.com, join venture with DreamWorks SKG to produce film content

Broadcasting

–

BIG 92.7 FM, BIG Broadcasting

Ambani Family (100%)

Endemol is an ideas generator and entertainment creator across all media platforms

Non Scripted TV

–

Shows include: Big Brother, Wipeout, Ton of Cash, Operation Triumph, Extreme Makeover,

Star Academy, Fear Factor, Deal or No Deal, 1 vs 100 and Set for

Life

Scripted TV

–

Endemol's scripted programs generate annual revenue of over €200 million. Output is expanding

and the company continues to add to its library of over 200 titles. Shows include: Country Roads, Arrayan Hotel,

Heritage, Don Juan and His Fair Lady, Julia’s Tango, Dead Set and The Successful Mr. and Mrs. Pells

Goldman Sachs

Capital Partners,

Mediaset Group and

Cyrte Group

Overview & Properties

Owners

DRAFT

STRICTLY CONFIDENTIAL

Broader Media Universe

8.2x

2.1x

25,472

18,854

7.3x

1.6x

48,024

37,304

8.8x

1.5x

42,984

34,795

30,000

(1)

1,426

618

8.8x

1.4x

68,242

56,574

5.3x

2.1x

72,669

43,902

8.4x

3.6x

15,325

8,812

7.8x

4.8x

$19,426

$7,575

EV / 09E EBITDA

Net Debt / 09E

EBITDA

Enterprise Value

Market Cap

Company

Source: Factset Research Systems (as of November 13, 2009)

1. Estimate

STRICTLY CONFIDENTIAL

Public Market Valuation

DRAFT

STRICTLY CONFIDENTIAL

Media

44%

Placement

18%

Promotions

38%

Media

37%

Placement

24%

Promotions

39%

Lexington Current Market Valuation

DRAFT

Public Market Overview ($mm)

8.6x

FY2010E EBITDA, after stock-based compensation

7.0

FY2010E EBITDA, after stock-based compensation

(4)(6)

Enterprise Value / EBITDA Multiples:

Plus: Debt

(3)

5.6x

FY2010E EBITDA, before stock-based compensation

10.8

FY2010E EBITDA, before stock-based compensation

(4)

116.0%

% of 52 Week Low

12.0

FY2009A EBITDA, after stock-based compensation

(4)(5)

(6.3%)

% of 52 Week High

5.0x

FY2009A EBITDA, after stock-based compensation

3.8x

FY2009A EBITDA, before stock-based compensation

$16.0

FY2009A EBITDA, before stock-based compensation

(4)

$60.4

Enterprise Value

(31.9)

Less: Cash

(3)

$92.3

Equity

Value

(2)

13.4

Diluted Shares Outstanding

(1)

$6.89

Share Price (November 13, 2009)

Revenue by Segment

EBITDA

Segment

(pre-corporate)

(4)

FY2009A: $214.6mm

FY2009A: $30.8mm

Assumes 13.4 million basic shares outstanding per management estimates and includes projected restricted stock

issuance for the fiscal year

Fully diluted equity value calculated using the treasury stock method based on 2.29m options outstanding at a weighted

average strike price of $11.76

Quarter ended July 31, 2009

EBITDA figures from Lexington Model

Adjusts for $4 million in stock-based compensation per FY2009A Annual Report

Macquarie estimate

Outlook:

STRICTLY CONFIDENTIAL

Lexington Historic Stock Price Analysis

DRAFT

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

Nov-04

May-05

Nov-05

May-06

Nov-06

May-07

Nov-07

May-08

Nov-08

May-09

Nov-09

6.35

6.67

6.68

$6.95

3 Months

4.99

6.57

6.24

$7.00

6 Months

3.30

5.18

5.34

$7.00

1 Year

3.30

6.66

6.32

$9.42

2 Year

3.30

7.32

7.72

$13.16

3 Year

3.30

8.28

8.67

$13.84

4 Year

3.30

8.51

8.72

$13.84

5 Year

$6.89

High

6.66

Mean

6.64

Median

6.43

Low

1 Month

Source: Factset Research Systems (as of November 13, 2009); Stock Prices represent closing prices adjusted for stock splits

STRICTLY CONFIDENTIAL

Analysis at Various Prices

DRAFT

276.2%

244.8%

213.5%

182.1%

150.8%

119.4%

116.0%

52-Wk Low

$161.3

$147.4

$134.0

$120.6

$107.2

$93.8

$92.3

Equity Value

(1)

($31.9)

Net Debt / (Cash)

(2)

$129.4

$115.5

$102.1

$88.7

$75.3

$61.9

$60.4

Enterprise Value

18.5x

16.5x

14.6x

12.7x

10.8x

8.8x

8.6x

EV / FY2010E EBITDA

$7.0

FY2010E

EBITDA,

after

stock-based

compensation

12.0x

10.7x

9.4x

8.2x

7.0x

5.7x

5.6x

EV / FY2010E EBITDA

$10.8

FY2010E EBITDA, before stock-based

compensation

(3)

63.3%

49.7%

36.1%

22.4%

8.8%

(4.8%)

(6.3%)

52-Wk High

25.3%

14.8%

4.4%

(6.1%)

(16.5%)

(26.9%)

(28.1%)

5 Year VWAP

44.6%

32.5%

20.5%

8.4%

(3.6%)

(15.7%)

(17.0%)

3 Year VWAP

124.7%

106.0%

87.3%

68.5%

49.8%

31.1%

29.0%

1 Year VWAP

91.4%

75.4%

59.5%

43.5%

27.6%

11.6%

9.9%

6 month VWAP

80.2%

65.2%

50.2%

35.1%

20.1%

5.1%

3.5%

3 month VWAP

80.7%

65.7%

50.6%

35.5%

20.5%

5.4%

3.8%

1 month VWAP

74.2%

59.7%

45.1%

30.6%

16.1%

1.6%

Current (as of Nov 13, 2009)

$12.00

$11.00

$10.00

$9.00

$8.00

$7.00

$6.89

Current

% Premium / (Discount)

Share Price

Assumes 13.4 million basic shares outstanding per management estimates and includes projected restricted stock issuance for the fiscal year; fully diluted equity value calculated using the treasury stock method

based on 2.29m options outstanding at a weighted average strike price of $11.76

Quarter ended July 31, 2009

EBITDA figures from Lexington Model

Macquarie estimate

(4)

STRICTLY CONFIDENTIAL

$2.62

$3.57

$3.40

$2.10

$2.31

$2.99

$2.10

$3.20

$3.23

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

$1.00

Lexington Valuation Framework

DRAFT

52-Week Trading

Range

Public Market Comparables

(Sum-of-the-Parts Basis)

Precedent Transaction Comparables

Going Private Ability to Pay Analysis

Discounted Cash Flow Analysis

NOLs are worth an additional $xx per share

To come pending Macquarie’s

due diligence with management

Equity Value per Share

STRICTLY CONFIDENTIAL

Public Company Comparables

DRAFT

17.3x

15.1x

12.5x

11.6x

WebMD

Google

Knot

Yahoo!

Internet

Mean = 14.1x

Source: Factset Research Systems (as of November 13, 2009)

7.3x

8.4x

8.8x

News Corp

Disney

CBS

TWX

Mean = 8.3x

Large Cap

6.7x

6.9x

7.2x

7.6x

National

CineMedia

Regal

Carmike

Cinemark

Mean = 7.1x

Cinema

10.9x

12.5x

12.6x

JCDecaux

Lamar

Clear Channel

Mean = 12.0x

Outdoor

8.2x

10.6x

11.2x

Discovery

Scripps

Viacom

Mean = 10.0x

Cable Networks

Mean = 6.2x

5.1x

6.7x

6.8x

Valassis

Harte-Hanks

Acxiom

Marketing

EV / 2009E EBITDA

STRICTLY CONFIDENTIAL

Select Recent Media Transactions

DRAFT

Source: Factset Research Systems, MergerMarket, Press Releases

1. Macquarie estimates

Announcement Date

Acquiror

Target

Enterprise Value

EV / LTM EBITDA

EV / Forward EBITDA

05-Nov-09

Scripps Networks Interactive

Travel Channel

$975

15.0x

13.0x

30-Sep-09

Alpha Broadcasting

CBS Portland Radio Stations(1)

$40

6.3x

31-Aug-09

Walt Disney

Marvel

$3,843

14.4x

12.7x

23-Jul-09

Apax

Partners

Bankrate

$486

11.9x

8.8x

20-May-09

Bonnier

Hachette(1)

$35

5.0x

21-Apr-09

Imagen

Music Group CV

Rodgers & Hammerstein(1)

$200

10.0x

9.5x

08-Apr-09

Pegasus Capital Advisors

Spirit Music(1)

$55

12.2x

11.0x

01-Apr-09

Disney & Barclays Private Equity

Kaboose

$95

9.8x

8.2x

19-Mar-09

Platinmum

Equity

San Diego Union-Tribune(1)

$50

4.5x

29-Aug-08

Microsoft

Greenfield Online

$421

13.3x

10.0x

Mean

$266

10.3x

9.9x

Median

$148

11.0x

9.8x

STRICTLY CONFIDENTIAL

Process and Next Steps

DRAFT

STRICTLY CONFIDENTIAL

Process and Next Steps

DRAFT

To Be Discussed