<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. _____ )*
Digital Generation Systems, Inc.
- --------------------------------------------------------------------------------
(Name of Issuer)
Common Stock
- --------------------------------------------------------------------------------
(Title of Class of Securities)
253921 10 0
- --------------------------------------------------------------------------------
(CUSIP Number)
Robert C. Bensky
c/o Technology Crossover Ventures
56 Main Street, Suite 210, Millburn, NJ 07041
(973) 467-5320
- --------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized to Receive Notices and
Communications)
August 26, 1997
- --------------------------------------------------------------------------------
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(b)(3) or (4), check the following box [_].
NOTE: Six copies of this statement, including all exhibits, should be filed with
the Commission. See Rule 13d-1(a) for other parties to whom copies are to be
sent.
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
<PAGE>
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CUSIP NO. 253921 10 0 SCHEDULE 13D PAGE 2 OF 29 PAGES
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- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1
Technology Crossover Ventures, L.P.
See Item 2 for identification of General Partner
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
2 (a) [_]
(b) [X]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS (SEE INSTRUCTIONS)
4
WC
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Delaware
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 395,374 (A)
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
0 (A)
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 395,374 (A)
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
0 (A)
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
395,374 (A)
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
12 (SEE INSTRUCTIONS) [X]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
3.1%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
14
PN
- ------------------------------------------------------------------------------
(A) Excludes an aggregate of 597,083 shares owned beneficially by the other
reporting persons indicated in this Schedule 13D, as to which this
reporting person disclaims beneficial ownership. Includes 262,128 shares
of Series A Convertible Preferred Stock which are immediately convertible
into Common Stock on a one-to-one basis.
<PAGE>
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CUSIP NO. 253921 10 0 SCHEDULE 13D PAGE 3 OF 29 PAGES
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- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1
Technology Crossover Ventures, C.V.
See Item 2 for a list of General Partners
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
2 (a) [_]
(b) [X]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS (SEE INSTRUCTIONS)
4
WC
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
5 2(d) OR 2(e) [_]
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Netherlands Antilles
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 31,312(A)
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
0(A)
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 31,312(A)
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
0(A)
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
31,312(A)
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
12 (SEE INSTRUCTIONS) [X]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
0.2%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
14
PN
- ------------------------------------------------------------------------------
(A) Excludes an aggregate of 961,145 shares owned beneficially by the other
reporting persons indicated in this Schedule 13D, as to which this reporting
person disclaims beneficial ownership. Includes 20,758 shares of Series A
Convertible Preferred Stock which are immediately convertible into Common
Stock on a one-to-one basis.
<PAGE>
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CUSIP NO. 253921 10 0 SCHEDULE 13D PAGE 4 OF 29 PAGES
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- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1
Technology Crossover Management, L.L.C.
See Item 2 for list of Managing Members
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
2 (a) [_]
(b) [X]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS (SEE INSTRUCTIONS)
4
OO
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
5
2(d) OR 2(e) [_]
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Delaware
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 426,686(A)
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
0(A)
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 426,686(A)
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
0(A)
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
426,686(A)
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [X]
12
(SEE INSTRUCTIONS)
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
3.3%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
14
OO
- ------------------------------------------------------------------------------
(A) Excludes an aggregate of 565,771 shares owned beneficially by the other
reporting persons indicated in this Schedule 13D, as to which this
reporting person disclaims beneficial ownership. Includes 282,886 shares
of Series A Convertible Preferred Stock which are immediately convertible
into Common Stock on a one-to-one basis.
<PAGE>
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CUSIP NO. 253921 10 0 SCHEDULE 13D PAGE 5 OF 29 PAGES
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- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1
Technology Crossover Ventures II, L.P.
See Item 2 for identification of General Partner
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
2 (a) [_]
(b) [X]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS (SEE INSTRUCTIONS)
4
WC
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
5 ITEMS 2(d) OR 2(e) [_]
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Delaware
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 270,650(A)
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
0(A)
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 270,650(A)
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
0(A)
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
270,650(A)
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
12 (SEE INSTRUCTIONS) [X]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
2.1%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
14
PN
- ------------------------------------------------------------------------------
(A) Excludes an aggregate of 721,807 shares owned beneficially by the other
reporting persons indicated in this Schedule 13D, as to which this reporting
person disclaims beneficial ownership. The 270,650 shares represent Series A
Convertible Preferred Stock which are immediately convertible into Common
Stock on a one-to-one basis.
<PAGE>
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CUSIP NO. 253921 10 0 SCHEDULE 13D PAGE 6 OF 29 PAGES
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- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1
TCV II (Q), L.P.
See Item 2 for identification of General Partner
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
2 (a) [_]
(b) [X]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS (SEE INSTRUCTIONS)
4
WC
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
5 ITEMS 2(d) OR 2(e) [_]
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Delaware
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 208,079(A)
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
0(A)
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 208,079(A)
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
0(A)
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
208,079(A)
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
12 (SEE INSTRUCTIONS) [X]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
1.6%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
14
PN
- ------------------------------------------------------------------------------
(A) Excludes an aggregate of 784,378 shares owned beneficially by the other
reporting persons indicated in this Schedule 13D, as to which this
reporting person disclaims beneficial ownership. The 208,079 shares
represent Series A Convertible Preferred Stock which are immediately
convertible into Common Stock on a one-to-one basis.
<PAGE>
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CUSIP NO. 253921 10 0 SCHEDULE 13D PAGE 7 OF 29 PAGES
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- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1
TCV II Strategic Partners, L.P.
See Item 2 for identification of General Partner
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
2 (a) [_]
(b) [X]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS (SEE INSTRUCTIONS)
4
WC
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
5 ITEMS 2(d) OR 2(e) [_]
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Delaware
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 36,927(A)
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
0(A)
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 36,927(A)
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
0(A)
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
36,927(A)
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
12 (SEE INSTRUCTIONS) [X]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
0.3%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
14
PN
- ------------------------------------------------------------------------------
(A) Excludes an aggregate of 955,530 shares owned beneficially by the other
reporting persons indicated in this Schedule 13D, as to which this
reporting person disclaims beneficial ownership. The 36,927 shares
represent Series A Convertible Preferred Stock which are immediately
convertible into Common Stock on a one-to-one basis.
<PAGE>
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CUSIP NO. 253921 10 0 SCHEDULE 13D PAGE 8 OF 29 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1
Technology Crossover Ventures II, C.V.
See Item 2 for a list of General Partners
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
2 (a) [_]
(b) [X]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS (SEE INSTRUCTIONS)
4
WC
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
5 ITEMS 2(d) OR 2(e) [_]
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Netherlands Antilles
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 41,323(A)
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
0(A)
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 41,323(A)
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
0(A)
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
41,323(A)
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
12 (SEE INSTRUCTIONS) [X]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
0.3%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
14
PN
- ------------------------------------------------------------------------------
(A) Excludes an aggregate of 951,134 shares owned beneficially by the other
reporting persons indicated in this Schedule 13D, as to which this
reporting person disclaims beneficial ownership. The 41,323 shares
represent Series A Convertible Preferred Stock which are immediately
convertible into Common Stock on a one-to-one basis.
<PAGE>
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CUSIP NO. 253921 10 0 SCHEDULE 13D PAGE 9 OF 29 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1
TCV II, V.O.F.
See Item 2 for list of Managing General Partners
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
2 (a) [_]
(b) [X]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS (SEE INSTRUCTIONS)
4
WC
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
5 ITEMS 2(d) OR 2(e) [_]
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Netherlands Antilles
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 8,792(A)
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
0(A)
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 8,792(A)
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
0(A)
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
8,792(A)
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
12 (SEE INSTRUCTIONS) [X]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
0.1%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
14
PN
- ------------------------------------------------------------------------------
(A) Excludes an aggregate of 983,665 shares owned beneficially by the other
reporting persons indicated in this Schedule 13D, as to which this
reporting person disclaims beneficial ownership. The 8,792 shares represent
Series A Convertible Preferred Stock which are immediately convertible into
Common Stock on a one-to-one basis.
<PAGE>
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CUSIP NO. 253921 10 0 SCHEDULE 13D PAGE 10 OF 29 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1
Technology Crossover Management II, L.L.C.
See Item 2 for list of Mananging Members
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
2 (a) [_]
(b) [X]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS (SEE INSTRUCTIONS)
4
OO
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
5 ITEMS 2(d) OR 2(e) [_]
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Delaware
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 565,771(A)
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
0(A)
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 565,771(A)
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
0(A)
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
565,771(A)
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
12 (SEE INSTRUCTIONS) [X]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
4.4%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
14
OO
- ------------------------------------------------------------------------------
(A) Excludes an aggregate of 426,686 shares owned beneficially by the other
reporting persons indicated in this Schedule 13D, as to which this
reporting person disclaims beneficial ownership. The 565,771 shares
represent Series A Convertible Preferred Stock which are immediately
convertible into Common Stock on a one-to-one basis.
<PAGE>
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CUSIP NO. 253921 10 0 SCHEDULE 13D PAGE 11 OF 29 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON Jay C. Hoag
1 I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
2 (a) [_]
(b) [X]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS (SEE INSTRUCTIONS)
4
OO
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
5
2(d) OR 2(e) [_]
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
U.S. Citizen
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 0(A)
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
992,457(A)
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 992,457(A)
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
0(A)
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
992,457(A)
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ]
12 (SEE INSTRUCTIONS)
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
7.7%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
14
IN
- ------------------------------------------------------------------------------
(A) Includes 848,657 shares of Series A Convertible Preferred Stock which are
immediately convertible into Common Stock on a one-to-one basis.
<PAGE>
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CUSIP NO. 253921 10 0 SCHEDULE 13D PAGE 12 OF 29 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON Richard H. Kimball
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
2 (a) [_]
(b) [X]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS (SEE INSTRUCTIONS)
4
OO
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
5 2(d) OR 2(e) [_]
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
U.S. Citizen
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 0(A)
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
992,457(A)
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 992,457(A)
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
0(A)
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
992,457(A)
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [_]
12 (SEE INSTRUCTIONS)
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
7.7%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
14
IN
- ------------------------------------------------------------------------------
(A) Includes 848,657 shares of Series A Convertible Preferred Stock which are
immediately convertible into Common Stock on a one-to-one basis.
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 253921 10 0 SCHEDULE 13D PAGE 13 OF 29 PAGES
- ----------------------- ---------------------
Item 1.
Security and Issuer.
-------------------
The title of the class of securities to which this Schedule 13D relates is
Common Stock ("Common Stock") of Digital Generation Systems, Inc., a California
corporation (the "Issuer"). The principal executive offices of the Issuer are
located at 875 Battery Street, 2nd Floor, San Francisco, CA 94111.
Item 2.
Identity and Background.
-----------------------
Set forth below is the following information with respect to each of the
persons filing this Schedule 13D (together, the "Filing Persons") and, in
addition, each of such person's managing partners or managing members, as the
case may be, and, if applicable, the persons controlling such managing partners
or managing members (such additional persons, together with the Filing Persons,
the "Item 2 Persons"): (a) name; (b) address of principal offices (if entity)
or residence or business address (if individual); (c) principal business (if
entity) or principal occupation and name, business and address of employer (if
individual); (d) information concerning criminal convictions during the last
five years; (e) information concerning civil or administrative proceedings under
state or federal securities laws during the past five years with respect to any
state or federal securities laws and (f) citizenship (if individual) or
jurisdiction of organization (if entity).
I.
a) Technology Crossover Ventures, L.P., a Delaware limited partnership ("TCV I,
L.P."). The General Partner of TCV I, L.P. is Technology Crossover
Management, L.L.C., a Delaware limited liability company ("TCM I"). The sole
Managing Members of TCM I are Jay C. Hoag ("Hoag") and Richard H. Kimball
("Kimball").
b) 575 High Street, Suite 400, Palo Alto, CA 94301
c) TCV I, L.P. is an investment fund.
d) No criminal convictions(1)
e) No adverse civil judgments for violations of securities laws(1)
f) Delaware
II.
a) Technology Crossover Ventures, C.V., a Netherlands Antilles limited
partnership ("TCV I, C.V."). The General Partners of TCV I, C.V. are TCM I
and Technology Crossover Administrator, N.V., a Netherlands Antilles
corporation ("TCA I"). TCA I is ultimately controlled by Hoag and Kimball.
b) Pietermaai 15, Willemstad, Curacao, Netherlands Antilles
c) TCV I, C.V. is an investment fund.
d) No criminal convictions(1)
e) No adverse civil judgments for violations of securities laws(1)
f) Netherlands Antilles
III.
a) Technology Crossover Management, L.L.C., a Delaware limited liability
company.
b) 575 High Street, Suite 400, Palo Alto, CA 94301
c) TCM I is an investment fund manager.
<PAGE>
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CUSIP NO. 253921 10 0 SCHEDULE 13D PAGE 14 OF 29 PAGES
- ----------------------- ---------------------
d) No criminal convictions(1)
e) No adverse civil judgments for violations of securities laws(1)
f) Delaware
IV.
a) Technology Crossover Administrator, N.V., a Netherlands Antilles
corporation.
b) Pietermaai 15, Willemstad, Curacao, Netherlands Antilles
c) TCA I is the Administrative General Partner of TCV I, C.V.
d) No criminal convictions(1)
e) No adverse civil judgments for violations of securities laws(1)
f) Netherlands Antilles
V.
a) Technology Crossover Ventures II, L.P., a Delaware limited partnership ("TCV
II, L.P."). The General Partner of TCV II, L.P. is Technology Crossover
Management II, L.L.C., a Delaware limited liability company ("TCM II"). The
sole Managing Members of TCM II are Hoag and Kimball.
b) 575 High Street, Suite 400, Palo Alto, CA 94301
c) TCV II, L.P. is an investment fund.
d) No criminal convictions(1)
e) No adverse civil judgments for violations of securities laws(1)
f) Delaware
VI.
a) TCV II (Q), L.P., a Delaware limited partnership ("TCV II (Q)"). The General
Partner of TCV II (Q) is TCM II.
b) 575 High Street, Suite 400, Palo Alto, CA 94301
c) TCV II (Q) is an investment fund.
d) No criminal convictions(1)
e) No adverse civil judgments for violations of securities laws(1)
f) Delaware
VII.
a) TCV II Strategic Partners, L.P., a Delaware limited partnership ("TCV II
Strategic Partners"). The General Partner of TCV II Strategic Partners is
TCM II.
b) 575 High Street, Suite 400, Palo Alto, CA 94301
c) TCV II Strategic Partners is an investment fund.
d) No criminal convictions(1)
e) No adverse civil judgments for violations of securities laws(1)
f) Delaware
VIII.
a) Technology Crossover Ventures II, C.V., a Netherlands Antilles limited
partnership ("TCV II, C.V."). The General Partners of TCV II, C.V. are TCM
II and Technology Crossover Administrator II, N.V., a Netherlands Antilles
corporation ("TCA II"). TCA II is ultimately controlled by Hoag and Kimball.
b) Pietermaai 15, Willemstad, Curacao, Netherlands Antilles
c) TCV II, C.V. is an investment fund.
d) No criminal convictions(1)
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 253921 10 0 SCHEDULE 13D PAGE 15 OF 29 PAGES
- ----------------------- ---------------------
e) No adverse civil judgments for violations of securities laws(1)
f) Netherlands Antilles
IX.
a) TCV II, V.O.F., a Netherlands Antilles general partnership ("TCV II,
V.O.F."). The Managing General Partners of TCV II, V.O.F. are TCM II and TCA
II.
b) Pietermaai 15, Willemstad, Curacao, Netherlands Antilles
c) TCV II, V.O.F. is an investment fund.
d) No criminal convictions(1)
e) No adverse civil judgments for violations of securities laws(1)
f) Netherlands Antilles
X.
a) Technology Crossover Management II, L.L.C., a Delaware limited liability
company.
b) 575 High Street, Suite 400, Palo Alto, CA 94301
c) TCM II is an investment fund manager.
d) No criminal convictions(1)
e) No adverse civil judgments for violations of securities laws(1)
f) Delaware
XI.
a) Technology Crossover Administrator II, N.V., a Netherlands Antilles
corporation.
b) Pietermaai 15, Willemstad, Curacao, Netherlands Antilles
c) TCA II is the Administrative General Partner of TCV II, C.V. and TCV II,
V.O.F.
d) No criminal convictions(1)
e) No adverse civil judgments for violations of securities laws(1)
f) Netherlands Antilles
XII.
a) Jay C. Hoag
b) 575 High Street, Suite 400, Palo Alto, CA 94301
c) Hoag is a Managing Member of both TCM I and TCM II.
d) No criminal convictions(1)
e) No adverse civil judgments for violations of securities laws(1)
f) Citizen of the United States of America
XIII.
a) Richard H. Kimball
b) 575 High Street, Suite 400, Palo Alto, CA 94301
c) Kimball is a Managing Member of both TCM I and TCM II.
d) No criminal convictions(1)
e) No adverse civil judgments for violations of securities laws(1)
f) Citizen of the United States of America
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 253921 10 0 SCHEDULE 13D PAGE 16 OF 29 PAGES
- ----------------------- ---------------------
__________________________
(1) During the last five years, no person listed above has been convicted in
a criminal proceeding (excluding traffic violations or similar misdemeanors),
nor has any such person been a party to a civil proceeding of a judicial or
administrative body of competent jurisdiction that resulted in such person
becoming subject to a judgment, decree or final order enjoining future
violations of, or prohibiting or mandating activities subject to, federal or
state securities laws or finding any violation with respect to such laws.
Item 3.
Source and Amount of Funds or Other Consideration.
-------------------------------------------------
All of the securities of the Issuer disclosed on the cover pages to this
Schedule 13D are held of record by the entities listed below. The source of
funds used in the acquisition of such securities, in each case, was the general
working capital of such entities. Such working capital was contributed by such
entities' respective partners.
<TABLE>
<CAPTION>
Aggregate Weighted
Number of Aggregate Average
Holder Shares(1) Amount Paid Price Per Share
- ---------------------------- ---------- ------------ ----------------
<S> <C> <C> <C>
TCV I, L.P. 395,374 $1,984,662 $5.02
TCV I, C.V. 31,312 $ 157,184 $5.02
TCV II, V.O.F. 8,792 $ 31,080 $3.54
TCV II, L.P. 270,650 $ 956,748 $3.54
TCV II (Q) 208,079 $ 735,559 $3.54
TCV II Strategic Partners 36,927 $ 130,537 $3.54
TCV II, C.V. 41,323 $ 146,077 $3.54
Totals 992,457 $4,141,847 $4.17
</TABLE>
- ------------------------------------------
(1) Includes both open market purchases of Common Stock and Series A Convertible
Preferred Stock purchased from the Issuer in a private placement
transaction.
Item 4.
Purpose of Transaction.
----------------------
The purchases of the Series A Preferred Stock by the Item 2 Persons were
made pursuant to a Preferred Stock Purchase Agreement, dated as of dated as of
July 14, 1997, as amended by Amendment to Preferred Stock Purchase Agreement
dated as of July 23, 1997 (as so amended, the "Series A Agreement"). The
acquisitions of the shares of the Issuer's Common Stock and Series A Preferred
Stock that are the subject of this filing were made for the purpose of
investment and not with a view to distribution of the shares or with a view
toward acquiring control of the Issuer. The Item 2 Persons with the power to
do so may sell, or cause to be sold, all or part of such shares or acquire, or
cause to be acquired, additional securities of the Issuer depending on market
conditions and other economic factors.
Except as described above, no reporting person has any current plans or
proposals that relate to or would result in:
<PAGE>
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CUSIP NO. 253921 10 0 SCHEDULE 13D PAGE 17 OF 29 PAGES
- ----------------------- ---------------------
a. The acquisition by any person of additional securities of the Issuer, or
the disposition of securities of the Issuer;
b. An extraordinary corporate transaction, such as a merger, reorganization or
liquidation, involving the Issuer or any of its subsidiaries;
c. A sale or transfer of a material amount of assets of the Issuer or any of
its subsidiaries;
d. Any change in the present board of directors or management of the Issuer,
including any plans or proposals to change the number or term of directors
or to fill any existing vacancies on the board;
e. Any material change in the present capitalization or dividend policy of the
Issuer;
f. Any other material change in the Issuer's business or corporate structure;
g. Changes in the Issuer's charter, bylaws or instruments corresponding
thereto or other actions which may impede the acquisition of control of the
Issuer by any person;
h. Causing a class of securities of the Issuer to be delisted from a national
securities exchange or to cease to be authorized to be quoted in an inter-
dealer quotation system of a registered national securities association;
i. A class of equity securities of the Issuer becoming eligible for
termination of registration pursuant to Section 12(g)(4) of the Exchange
Act; or
j. Any action similar to any of those enumerated above.
Item 5.
Interest in Securities of the Issuer.
------------------------------------
(a) and (b) Except to the extent otherwise expressly stated herein, this
Schedule 13D shall not be construed as an admission that any Item 2 Person is,
either for purposes of Section 13(d) or 13(g) of the Act or for other purposes,
the beneficial owner of any Common Stock disclosed in this Schedule 13D. The
aggregate number and percentage of the class of securities identified pursuant
to Item 1 of this Schedule 13D that are beneficially owned by each Item 2 Person
are as follows:
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 253921 10 0 SCHEDULE 13D PAGE 18 OF 29 PAGES
- ----------------------- ---------------------
<TABLE>
<CAPTION>
Common Stock
Beneficially Dispositive
Item 2 Person Owned % of Class(1) Voting Power Power
- -------------------- ------------- ------------- ------------ -----------
<S> <C> <C> <C> <C>
TCV I, L.P. (2) 395,374 3.1% sole sole
TCV I, C.V. (2) 31,312 0.2% sole sole
TCM I 426,686 3.3% sole sole
TCA I 0 0% N/A N/A
TCV II, L.P. (3) 270,650 2.1% sole sole
TCV II (Q) (3) 208,079 1.6% sole sole
TCV II Strategic 36,927 0.3% sole sole
Partners (3)
TCV II, C.V. (3) 41,323 0.3% sole sole
TCV II, V.O.F.(3) 8,792 0.1% sole sole
TCM II 565,771 4.4% sole sole
TCA II 0 0% N/A N/A
Hoag (4) 992,457 7.7% shared sole
Kimball (4) 992,457 7.7% shared sole
</TABLE>
__________________
(1) All percentages in this table are based, pursuant to Rule 13d-1(e) of
the Securities Exchange Act of 1934, on the 12,099,825 shares of Common Stock
of the Company outstanding as of July 31, 1997, as reported in the Company's
Quarterly Report on Form 10-Q for the period ended June 30, 1997, and on the
shares of Series A Convertible Preferred Stock of the Company beneficially
owned by the listed Item 2 Persons which have been included on an as-converted
to Common Stock basis.
(2) Each noted entity (together, the "TCV I Funds") is the holder of
record of the securities set forth opposite the name of such entity and has
sole voting and investment power with respect to such securities. TCM I, as
sole General Partner of TCV I, L.P. and as Investment General Partner of TCV
I, C.V., may also be deemed to have sole voting and investment power with
respect to such securities. TCM I disclaims beneficial ownership of such
securities except to the extent of its pecuniary interest therein.
(3) Each noted entity (together, the "TCV II Funds") is the holder of
record of the securities set forth opposite the name of such entity and has
sole voting and investment power with respect to such securities. TCM II, as
sole General Partner of TCV II, L.P., TCV II (Q) and TCV II Strategic Partners
and as Investment General Partner of TCV II, C.V. and TCV II, V.O.F., may also
be deemed to have sole voting and investment power with respect to such
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 253921 10 0 SCHEDULE 13D PAGE 19 OF 29 PAGES
- ----------------------- ---------------------
securities. TCM II disclaims beneficial ownership of such securities except
to the extent of its pecuniary interest therein.
(4)
Under the operating agreements of both TCM I and TCM II, Hoag and Kimball
have the independent power to cause the funds managed by such entities to
buy and sell securities of publicly traded portfolio companies, however, in
general, they must act by unanimous consent with respect to all other
matters, including directing the voting of such securities. As a result,
Hoag and Kimball may also be deemed to have sole dispositive power and
shared voting power with respect to the securities held by the TCV I Funds
and the TCV II Funds. Hoag and Kimball disclaim beneficial ownership of
such securities except to the extent of their respective pecuniary
interests therein.
(c) The following is a list of all transactions in the Issuer's securities
by the Item 2 Persons effected during the past sixty days. All of such
transactions were purchases from the Issuer in private placement transactions.
<TABLE>
<CAPTION>
Aggregate Percentage Ownership
------------------------------
Price of All Item 2 Persons After
----- ---------------------------
Shares Per Transactions Effected on Date
------ --- -----------------------------
Purchaser Date Purchased Share Listed
- ---------- ----- --------- ----- ----------
<S> <C> <C> <C> <C>
TCV I, L.P. 7-24-97 106,555 $3.54 4.0%(1)
TCV I, C.V. 7-24-97 8,438 $3.54 4.0%(1)
TCV II, V.O.F. 7-24-97 3,574 $3.54 4.0%(1)
TCV II, L.P. 7-24-97 110,019 $3.54 4.0%(1)
TCV II (Q) 7-24-97 84,584 $3.54 4.0%(1)
TCV II Strategic 7-24-97 15,011 $3.54 4.0%(1)
Partners
TCV II, C.V. 7-24-97 16,798 $3.54 4.0%(1)
TCV I, L.P. 8-26-97 155,573 $3.54 7.7%(2)
TCV I, C.V. 8-26-97 12,320 $3.54 7.7%(2)
TCV II, V.O.F. 8-26-97 5,218 $3.54 7.7%(2)
TCV II, L.P. 8-26-97 160,631 $3.54 7.7%(2)
TCV II (Q) 8-26-97 123,495 $3.54 7.7%(2)
TCV II Strategic 8-26-97 21,916 $3.54 7.7%(2)
Partners
TCV II, C.V. 8-26-97 24,525 $3.54 7.7%(2)
</TABLE>
___________________________________
(1)
This percentage is based, pursuant to Rule 13d-1(e) of the Securities
Exchange Act of 1934, on the 11,731,157 shares of Common Stock of
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 253921 10 0 SCHEDULE 13D PAGE 20 OF 29 PAGES
- ----------------------- ---------------------
the Company outstanding as of April 30, 1997, as reported in the Company's
Quarterly Report on Form 10-Q for the period ended March 31, 1997, and on the
shares of Series A Convertible Preferred Stock of the Company beneficially
owned by the listed Item 2 Persons which have been included on an as-converted
to Common Stock basis.
(2)
This percentage is based, pursuant to Rule 13d-(e) of the Securities
Exchange Act of 1934, on the 12,099,825 shares of Common Stock of the Company
outstanding as of July 31, 1997, as reported in the Company's Quarterly Report
on Form 10-Q for the period ended June 30, 1997, and on the shares of Series A
Convertible Preferred Stock of the Company beneficially owned by the listed
Item 2 Persons which have been included on an as-converted to Common Stock
basis.
(d) Inapplicable.
(e) Inapplicable.
Item 6.
Contracts, Arrangements, Understandings or Relationships with Respect to
------------------------------------------------------------------------
Securities of the Issuer.
------------------------
Pursuant to the Series A Agreement, so long as the purchasers of the
Series A Preferred Stock own 10% of the total outstanding stock of the Issuer
(as calculated pursuant to Section 16(b) of the Securities Exchange Act of
1934, as amended), the Issuer agrees to take necessary action to cause a
designee of the holders of Series A Preferred Stock to be nominated, and to
use its best efforts to cause such designee to be elected, to the Board of
Directors. In addition, some of the Item 2 Persons have rights to acquire
future privately offered equity securities of the Issuer as described in
Section 4.8 of the Series A Purchase Agreement. The description herein of the
Series A Purchase Agreement is qualified in its entirety by reference to such
agreements. Except as set forth herein, there are no contracts, arrangements
or understandings among any of the Item 2 Persons made or entered into
specifically with respect to holding, voting or disposing of the Common Stock
of the Issuer.
Under the terms of the respective Partnership Agreements of the TCV I
Funds, TCM I possesses the power to manage the investment activities of the
TCV I Funds, including the power to direct the voting and direct the
disposition of the Common Stock of the Issuer. Under the terms of the
respective Partnership Agreements of the TCV II Funds, TCM II possesses the
power to manage the investment activities of the TCV II Funds, including the
power to direct the voting and disposition of the Common Stock of the Issuer.
Under the Operating Agreements of TCM I and TCM II, Hoag and Kimball (the sole
Managing Members of each of such entities) possess the power to cause TCM I
and TCM II to exercise such voting and dispositive power with respect to the
securities of the Issuer held by the TCV I Funds and the TCV II Funds.
Item 7.
Material to be Filed as Exhibits.
--------------------------------
The following exhibits are attached hereto or incorporated herein by
reference:
Exhibit A: Statement Appointing Designated Filer and Authorized Signer
Exhibit B: Preferred Stock Purchase Agreement by and among Digital
Generation Systems, Inc. and the parties named therein,
dated as of July 14, 1997.*
Exhibit C: Amendment to Preferred Stock Purchase Agreement, dated as of
July 23, 1997.*
* These documents were filed with the Commission by the Issuer as Exhibits
2.2 and 2.3 to its Current Report on Form 8-K filed on August 1, 1997 and are
incorporated herein by reference.
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 253921 10 0 SCHEDULE 13D PAGE 21 OF 29 PAGES
- ----------------------- ---------------------
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.
Dated September 5, 1997
TECHNOLOGY CROSSOVER VENTURES, L.P.,
a Delaware Limited Partnership
By: /s/ Robert C. Bensky
---------------------------------------
Robert C. Bensky, Authorized Signatory
TECHNOLOGY CROSSOVER VENTURES, C.V.,
a Netherlands Antilles Limited Partnership
By: /s/ Robert C. Bensky
---------------------------------------
Robert C. Bensky, Authorized Signatory
TECHNOLOGY CROSSOVER MANAGEMENT, L.L.C.,
a Delaware Limited Liability Company
By: /s/ Robert C. Bensky
---------------------------------------
Robert C. Bensky, Authorized Signatory
TECHNOLOGY CROSSOVER VENTURES II, L.P.,
a Delaware Limited Partnership
By: /s/ Robert C. Bensky
---------------------------------------
Robert C. Bensky, Authorized Signatory
TCV II (Q), L.P.,
a Delaware Limited Partnership
By: /s/ Robert C. Bensky
---------------------------------------
Robert C. Bensky, Authorized Signatory
TCV II STRATEGIC PARTNERS, L.P.,
a Delaware Limited Partnership
By: /s/ Robert C. Bensky
---------------------------------------
Robert C. Bensky, Authorized Signatory
TECHNOLOGY CROSSOVER VENTURES II, C.V.,
a Netherlands Antilles Limited Partnership
By: /s/ Robert C. Bensky
---------------------------------------
Robert C. Bensky, Authorized Signatory
TCV II, V.O.F.,
a Netherlands Antilles General Partnership
By: /s/ Robert C. Bensky
---------------------------------------
Robert C. Bensky, Authorized Signatory
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 253921 10 0 SCHEDULE 13D PAGE 21 OF 29 PAGES
- ----------------------- ---------------------
TECHNOLOGY CROSSOVER MANAGEMENT II, L.L.C.,
a Delaware Limited Liability Company
By: /s/ Robert C. Bensky
---------------------------------------
Robert C. Bensky, Authorized Signatory
Jay C. Hoag
By: /s/ Robert C. Bensky
---------------------------------------
Robert C. Bensky, Authorized Signatory
Richard H. Kimball
By: /s/ Robert C. Bensky
---------------------------------------
Robert C. Bensky, Authorized Signatory
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 253921 10 0 SCHEDULE 13D PAGE 23 OF 29 PAGES
- ----------------------- ---------------------
EXHIBIT A
STATEMENT APPOINTING DESIGNATED FILER AND AUTHORIZED SIGNER
Each of the undersigned entities and individuals (collectively, the
"Reporting Persons") hereby designates the entity listed in Column II of Exhibit
-------
A hereto, or such other person or entity as is designated in writing by Robert
- -
C. Bensky (any such entity is referred to as the "Designated Filer") as the
beneficial owner to make filings of Schedules 13D and 13G (and any amendments
thereto) pursuant to Section 13(d) of the Securities Exchange Act of 1934 (the
"Exchange Act") and of Forms 3, 4 and 5 (and any amendments thereto) pursuant to
Section 16(a) of the Exchange Act (collectively, the "Reports") with respect to
the securities of the entities listed in Column I of Exhibit A hereto and with
---------
respect to the securities of any other entity whose securities are now, or
hereafter become, publicly traded and whose securities are beneficially owned
(directly or indirectly) both by such Reporting Person and by such Designated
Filer (collectively, the "Companies").
Each Reporting Person hereby further authorizes and designates ROBERT C.
BENSKY (the "Authorized Signatory") to execute and file on behalf of such
Reporting Person the Reports with respect to the securities of the Companies,
including all Schedules 13D and 13G and Forms 3, 4 and 5, and any amendments
thereto, that such Reporting Person may be required to file with the United
States Securities and Exchange Commission as a result of such Reporting Person's
ownership of, or transactions in securities of the Companies.
The authority of the Designated Filer and the Authorized Signatory under
this document with respect to each Reporting Person shall continue until such
Reporting Person is no longer required to file Schedules 13D or 13G or Forms 3,
4 and 5 with respect to the Reporting Person's ownership of, or transactions in,
the securities of the Companies, unless earlier revoked in writing. Each
Reporting Person acknowledges that the Designated Filer and the Authorized
Signatory are not assuming any of the Reporting Person's responsibilities to
comply with Section 13(d) or Section 16 of the Exchange Act.
Date: September 5, 1997 TECHNOLOGY CROSSOVER MANAGEMENT, L.L.C.,
a Delaware Limited Liability Company
By: /s/ Jay C. Hoag
-------------------------------
Jay C. Hoag, Managing Member
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 253921 10 0 SCHEDULE 13D PAGE 2 OF 29 PAGES
- ----------------------- ---------------------
Date: September 5, 1997 TECHNOLOGY CROSSOVER VENTURES, L.P.,
a Delaware Limited Partnership
By: Technology Crossover Management, L.L.C.
a Delaware Limited Liability Company
Its General Partner
By: /s/ Jay C. Hoag
------------------------------------------
Jay C. Hoag, Managing Member
Date: September 5, 1997 TECHNOLOGY CROSSOVER VENTURES, C.V.,
a Netherlands Antilles Limited Partnership
By: Technology Crossover Management, L.L.C.
a Delaware Limited Liability Company
Its Investment General Partner
By: /s/ Jay C. Hoag
------------------------------------------
Jay C. Hoag, Managing Member
And By: Technology Crossover
Administrator, N.V.
a Netherlands Antilles Corporation
Its Administrative General Partner
By: /s/ ABN AMRO Trust Company (Curacao) N.V.
------------------------------------------
ABN AMRO Trust Company (Curacao) N.V.
Managing Director
Date: September 5, 1997 TECHNOLOGY CROSSOVER MANAGEMENT II, L.L.C.,
a Delaware Limited Liability Company
By: /s/ Jay C. Hoag
------------------------------------------
Jay C. Hoag, Managing Member
24
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 253921 10 0 SCHEDULE 13D PAGE 2 OF 29 PAGES
- ----------------------- ---------------------
Date: September 5, 1997 TECHNOLOGY CROSSOVER VENTURES II, L.P.,
a Delaware Limited Partnership
By: Technology Crossover Management II, L.L.C.
a Delaware Limited Liability Company
Its General Partner
By: /s/ Jay C. Hoag
------------------------------------------
Jay C. Hoag, Managing Member
Date: September 5, 1997 TCV II (Q), L.P.,
a Delaware Limited Partnership
By: Technology Crossover Management II, L.L.C.
a Delaware Limited Liability Company
Its General Partner
By: /s/ Jay C. Hoag
------------------------------------------
Jay C. Hoag, Managing Member
Date: September 5, 1997 TCV II STRATEGIC PARTNERS, L.P.,
a Delaware Limited Partnership
By: Technology Crossover Management II, L.L.C.
a Delaware Limited Liability Company
Its General Partner
By: /s/ Jay C. Hoag
------------------------------------------
Jay C. Hoag, Managing Member
25
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 253921 10 0 SCHEDULE 13D PAGE 26 OF 29 PAGES
- ----------------------- ---------------------
Date: September 5, 1997 TECHNOLOGY CROSSOVER VENTURES II, C.V.,
a Netherlands Antilles Limited
Partnership
By: Technology Crossover Management II, L.L.C.
a Delaware Limited Liability Company
Its Investment General Partner
By: /s/ Jay C. Hoag
---------------------------------
Jay C. Hoag, Managing Member
And By: Technology Crossover
Administrator II, N.V.
a Netherlands Antilles Corporation
Its Administrative General Partner
By: /s/ ABN AMRO Trust Company (Curacao) N.V.
----------------------------------------------
ABN AMRO Trust Company (Curacao) N.V.
Managing Director
Date: September 5, 1997 TCV II, V.O.F.,
a Netherlands Antilles General Partnership
By: Technology Crossover Management II, L.L.C.
a Delaware Limited Liability Company
Its Investment General Partner
By: /s/ Jay C. Hoag
------------------------------------------
Jay C. Hoag, Managing Member
And By: Technology Crossover
--------------------------------------
Administrator II, N.V.
--------------------------------------
a Netherlands Antilles Corporation
Its Administrative General Partner
By: /s/ ABN AMRO Trust Company (Curacao) N.V.
-------------------------------------------
ABN AMRO Trust Company (Curacao) N.V.
Managing Director
Date: September 5, 1997 /s/ Robert C. Bensky
-----------------------------------------------
Robert C. Bensky
Date: September 5, 1997 /s/ Jay C. Hoag
-----------------------------------------------
Jay C. Hoag
26
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 253921 10 0 SCHEDULE 13D PAGE 27 OF 29 PAGES
- ----------------------- ---------------------
Date: September 5, 1997 /s/ Richard H. Kimball
----------------------------------------------
Richard H. Kimball
Date: September 5, 1997 /s/ Andrew B. Sessions
----------------------------------------------
Andrew B. Sessions
Date: September 5, 1997 /s/ Marc S. Tesler
----------------------------------------------
Marc S. Tesler
<PAGE>
SCHEDULE 13D
- ------------------------------------------------------------------------------
CUSIP NO. 253921 10 0 PAGE 28 OF 29 PAGES
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EXHIBIT A
Column I Column II Persons/Entities on Whose Behalf
- -------- --------- --------------------------------
Publicly Traded Company Designated Filer the Designated Filer May Act
- ----------------------- ---------------- ----------------------------
<S> <C> <C>
MemberWorks Incorporated Technology Technology Crossover Management, L.L.C.
Crossover Technology Crossover Ventures, L.P.
Management II, Technology Crossover Ventures, C.V.
L.L.C. Technology Crossover Management II, L.L.C.
Technology Crossover Ventures II, L.P.
TCV II (Q), L.P.
TCV II Strategic Partners, L.P.
Technology Crossover Ventures II, C.V.
TCV II, V.O.F.
Robert C. Bensky
Jay C. Hoag
Richard H. Kimball
Andrew B. Sessions
Marc S. Tesler
Claremont Technology Group, Inc. Technology Technology Crossover Management, L.L.C.
Crossover Technology Crossover Ventures, L.P.
Management II, Technology Crossover Ventures, C.V.
L.L.C. Technology Crossover Management II, L.L.C.
Technology Crossover Ventures II, L.P.
TCV II (Q), L.P.
TCV II Strategic Partners, L.P.
Technology Crossover Ventures II, C.V.
TCV II, V.O.F.
Robert C. Bensky
Jay C. Hoag
Richard H. Kimball
Andrew B. Sessions
Marc S. Tesler
</TABLE>
28
<PAGE>
SCHEDULE 13D
- ------------------------------------------------------------------------------
CUSIP NO. 253921 10 0 PAGE 29 OF 29 PAGES
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Column I Column II Persons/Entities on Whose Behalf
- -------- --------- --------------------------------
Publicly Traded Company Designated Filer the Designated Filer May Act
- ------------------------ ---------------- ----------------------------
<S> <C> <C>
Digital Generation Systems, Inc. Technology Technology Crossover Management, L.L.C.
Crossover Technology Crossover Ventures, L.P.
Management II, Technology Crossover Ventures, C.V.
L.L.C. Technology Crossover Management II, L.L.C.
Technology Crossover Ventures II, L.P.
TCV II (Q), L.P.
TCV II Strategic Partners, L.P.
Technology Crossover Ventures II, C.V.
TCV II, V.O.F.
Robert C. Bensky
Jay C. Hoag
Richard H. Kimball
Andrew B. Sessions
Marc S. Tesler
</TABLE>
29
