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09 03 24 Web 2.0 Weekly 09 03 24 Web 2.0 Weekly Document Transcript

  • SOFTWARE & SERVICES 24 MARCH 2009 DAVID SHORE, CFA, MBA 416.860.6784 WEB 2.O WEEKLY david.shore@researchcapital.com Arun Thomas (Associate) 416.860.7666 MIXED FINANCIAL RESULTS REPO RTED T E NC E NT L E A D S WIT H 9 0% R E V E NU E G RO WT H A number of the public companies we track in our W eb 2.0 Universe reported their fiscal results over the past week. Tencent Holdings led the companies reporting with revenue growth of 90% for the full year while MOKO.mobi had the worst revenue performance, dropping almost 60% from the prior year. For additional details, please see the industry news and price performance sections of the report. R evenue G rowth C ompany Headline (Y /Y %) Look S ma rt L td. A nnou nces C ondens ed C ons o lidate d U na udited E a rn ings R es ults for th e 2 5% L ookS mar t, L td. (N as daqG M: LO O K ) F ourth Qu arter an d F ull Y ea r E nded D ecember 31, 200 8 ; Ann ounc es I mpairment C harge s for the F ourth Qu arter and F ull Y ea r E nded De c ember 31, 200 8 ; P rov ide s R ev enue G uidanc e for the F irs t Q uarte r of F isc al 20 09 J u mbuck E ntertainment P ty L td. A nno unc es E arnings R es ults fo r the H alf Y e ar E nded 2 9% J umbuc k E nte rtainment P ty L td. (AS X: J MB ) Dec ember 31 , 20 08 MO K O .mobi L imited R e ports E arnin gs R es ults for the F irst H alf E nde d Decembe r 3 1, 2 008 -5 7% MOK O. mobi L imi te d (AS X: MK B ) DAD A S pA R eports R ev enu e R es ults fo r the Y ea r 2008 6% DADA S pA (C M:D A) T enc ent H oldings L td. R e ports C on so lidate d U n audited E a rn in gs R es ults for th e F ou rth 8 9% T ence nt H ol dings L td. (S E HK : 7 00) Q uarter an d Y ear E nde d Dec em be r 31, 2008 ; B oard o f Dire ctors R ec ommends F in al Dividend, P a yable on M ay 27, 200 9 W iz z ard S oftwa re C orporation R epo rts P reliminary E arnings R es ults for the Y e ar of 2008 1 8% W iz zard S oftware C orpora ti on (AME X : W ZE ) W ebz en Inc . R e ports E arnings R es ults fo r the Full Y ear of 200 8 NA W ebz en Inc . (K O S E : A0690 80) This report has been created b y Anal ysts that are emplo yed b y Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report. w w w . r e s e a rc h c a p i t a l . c o m T o ro n t o 4 1 6 . 8 6 0 . 7 6 0 0 Montreal 514.399.1500 Vancouver 604.662.1800 Calgary 403.265.7400 Regina 306.566.7550
  • Page 2 THE WEB 2.0 UNIVERSE Ninety public Web 2.0 companies identified: Our W eb 2.0 universe contains 90 companies, with a combined market cap of $33.8 billion. These include a wide variety of companies, including MMOG (Massive Multi-Player Online Gaming) companies, social networking software companies, media sharing companies, and social lending companies. See below for a summary of the full universe (Figure 1). The average market cap for the group is ~$376 million (but a median of only $28 million), with average trailing revenue of $137 million (median $46 million). The companies are also generally profitable, with a median EBITDA margin of 16.4%. On a valuation basis, the overall average is 4.5x trailing revenue (median 1.3x) and 9.1x trailing EBITDA (median 6.4x). Twelve of the companies have more than 500 employees. C omparable C ompany A nalys is > W eb 2.0 Trading Cu rrent U S D Market U S D LT M To tal US D L TM T otal E BITDA TE V/LT M T E V/LT M C om pany Nam e L TM as o f T icker E xch ange Currenc y H Q P ric e C ap ($m) R ev ($m) E B ITDA ($m) % R evenue E B IT DA E mployees Acce le rize N ew Me dia, Inc. 9 /30 /200 8 AC LZ OT C B B USD U nited S ta tes 0 .20 5 .4 3.2 (4 .7) NM 3.0 x - 20 Actoz S of t C o., L td. 9 /30 /200 8 A0 527 90 K OS E KR W S o uth K orea 11, 300 7 1.9 52. 8 9 .6 18 .3% 0.9 x 4.8x NA AQ Inte ractive , Inc. 1 2/31 /200 8 38 38 TSE JPY J apan 33 ,400 .00 1 8.7 62. 0 5 .0 8 .0% - - NA As s o cia ted Media H oldings Inc. 6 /30 /200 7 AS MH OT C P K USD U nited S ta tes 0 0 .1 0.1 (2 .3) NM 8.0 x - 3 B igstring Co rp. 9 /30 /200 8 BS GC OT C B B USD U nited S ta tes 0 .01 0 .7 0.1 (2 .1) NM 28.9 x - 8 B e tawave Co rpo ra tion 9 /30 /200 8 B W AV OT C B B USD U nited S ta tes 0 4 .4 6.3 (1 1.0) NM 2.4 x - 41 B e yo nd Co mmer ce, Inc. 9 /30 /200 8 B Y OC OT C B B USD U nited S ta tes 0 .42 1 7.2 1.1 (7 .7) NM 18.3 x - 25 B right T hings plc 9 /30 /200 8 AIM:B G T AIM G BP U nited K ingdom 0 3 .4 0.2 (1 .6) NM 14.1 x - 9 B roa dW ebAs ia Inc. 9 /30 /200 8 BWBA OT C P K USD U nited S ta tes 0 .51 4 3.3 0.0 (4 .6) NM - - 46 C DC C orp. 9 /30 /200 8 C HIN .A N as da qG S USD H ong K ong 1 11 3.3 428 .1 1 8.8 4 .4% 0.4 x 9.0x 3 ,12 5 C hina G ate wa y C orpo ra tio n 9 /30 /200 8 CGWY OT C B B USD U nited S ta tes 0 .00 0 .0 6.7 (6 .6) -9 8.9% 0.0 x - 37 C hine s e G amer International 9 /30 /200 8 G T S M:308 3 GT SM TWD T aiwan 182 45 6.9 38. 1 1 8.0 47 .1% 10.5 x 2 2.3 x NA C ornerW orld C orporation 1 0/31 /200 8 C WR L OT C B B USD U nited S ta tes 0 .14 6 .6 0.6 NM NM 13.1 x - NA D ADA S pA 9 /30 /200 8 C M:D A CM E UR Ita ly 5 10 7.7 229 .8 3 6.7 16 .0% 0.7 x 4.1x 574 D XN Ho ldings B hd 1 1/30 /200 8 DXN KL S E MY R Ma la ys ia 0 .28 1 7.9 76. 3 1 0.1 13 .3% 0.5 x 3.7x NA D ibz Inte rnational, Inc. NA DIB Z OT C P K USD U nited S ta tes 0 0 .0 NA NM NM - - NA D igitalP o st Inte ra ctive , Inc. 9 /30 /200 8 DG LP OT C B B USD U nited S ta tes 0 .01 0 .7 0.4 (3 .3) NM 3.9 x - 11 D igitalT own, Inc. 1 1/30 /200 8 DG T W OT C B B USD U nited S ta tes 3 6 7.9 NM (2 .5) NM - - 3 D olphin Digital Me dia, Inc. NA DP DM OT C B B USD U nited S ta tes 0 .62 3 0.2 NA NM NM 1.0 x - 6 E o lith C o. L td. 1 2/31 /200 7 A0 410 60 K OS E KR W S o uth K orea 540 1 8.2 18. 0 (0 .0) -0 .3% - - NA E xte ns ions , Inc. 9 /30 /200 8 E XT I OT C P K USD U nited S ta tes 0 .15 1 4.2 NM NM NM - - 2 F inancia l Media G r oup, Inc. 1 1/30 /200 8 F NG P OT C B B USD U nited S ta tes 0 0 .7 6.8 1 .2 18 .3% 0.0 x - 22 F luid Mus ic Ca nada, Inc. 9 /30 /200 8 T S X:F MN TSX C AD U nited S ta tes 0 .35 1 4.9 4.2 (8 .6) NM 3.8 x - 29 F rogs te r Interactive P ictu re s AG 6 /30 /200 8 F RG XT R A E UR G ermany 7 2 1.0 5.5 (3 .3) -6 0.6% 1.1 x 6.6x NA G a ma nia D igital E nter tainment C o., L td. 9 /30 /200 8 61 80 GT SM TWD T aiwan 32 .80 14 7.5 110 .1 1 8.6 16 .9% 0.3 x 1.1x NA G a me On C o L td. 1 2/31 /200 8 38 12 TSE JPY J apan 80, 000 7 9.5 76. 7 2 0.3 26 .4% 3.6 x - NA G e oS e ntric O yj 9 /30 /200 8 G E O1 V H LS E E UR F inland 0 .03 2 5.3 5.6 (1 2.8) NM - - 92 G iant Intera ctive G roup, Inc. 1 2/31 /200 8 GA NYS E USD C hina 7 1,6 06.9 233 .3 14 4.4 61 .9% 1.3 x 5.5x NA G iga Media Ltd. 9 /30 /200 8 G IG M N as da qG S USD T aiwan 6 .07 32 7.7 200 .5 4 8.0 23 .9% - - 975 G ravity C o., L td 9 /30 /200 8 G R VY N as da qG M USD S o uth K orea 1 1 7.8 35. 3 6 .8 19 .2% 32.6 x - 636 G ree, Inc. 6 /30 /200 8 T S E : 363 2 TSE JPY J apan 4 ,570 .00 1,0 48.0 30. 2 1 0.9 36 .0% 1.0 x 5.5x NA G u ngH o O nline E ntertainment, Inc. 1 2/31 /200 8 37 65 OS E JPY J apan 1 14, 500 13 4.8 115 .6 2 0.6 17 .8% 0.8 x - NA H anbitS of t, Inc. 1 2/31 /200 8 A0 470 80 K OS E KR W S o uth K orea 3 ,500 .00 5 5.4 50. 2 (1 4.2) -2 8.2% 0.2 x 5.4x NA IAC /InterActiveC orp. 1 2/31 /200 8 IAC I N as da qG S USD U nited S ta tes 15 2,1 00.1 1 ,44 5.1 6 4.6 4 .5% - - 3 ,20 0 IAS E nergy, Inc. 1 0/31 /200 8 IAS C.A OT C B B USD C ana da 0 .05 3 .2 0.0 (0 .9) NM - - NA IdeaE dge, Inc. 1 2/31 /200 8 OT C B B :IDAE OT C B B USD U nited S ta tes 0 1 6.7 0.0 (4 .6) NM 2.1 x - NA is ee media Inc. 1 2/31 /200 8 IE E T S XV C AD C ana da 0 .10 4 .1 1.2 (4 .8) NM 1.0 x 2.8x NA J umbu ck E ntertainment P ty Ltd. 1 2/31 /200 8 AS X:J MB AS X AU D Au s tra lia 1 1 7.3 12. 5 4 .7 37 .2% 3.9 x - 72 J umpT V Inc. 6 /30 /200 8 T S X:J T V TSX C AD C ana da 0 .40 3 6.8 11. 5 (1 .8) -1 5.3% 0.8 x 1 0.7 x NA K a boos e Inc. 9 /30 /200 8 T S X:K AB TSX C AD C ana da 0 4 2.0 60. 1 4 .6 7 .6% 3.3 x 9.7x NA K ings oft Co. Ltd. 9 /30 /200 8 38 88 S E HK HKD C hina 3 .11 43 0.8 106 .8 3 6.1 33 .8% 2.5 x - 1 ,66 0 Lingo Media Co rporation 9 /30 /200 8 T S XV : LM T S XV C AD C ana da 1 7 .6 3.3 (1 .4) -4 2.5% 0.3 x - NA Live World Inc. 9 /30 /200 8 LV WD OT C P K USD U nited S ta tes 0 .15 4 .6 11. 7 (1 .2) -1 0.1% - - 73 Lo okS mart, Ltd. 1 2/31 /200 8 LOOK N as da qG M USD U nited S ta tes 1 1 7.4 65. 0 (2 .0) -3 .1% - - NA M agnitu de Information S ys tems Inc. 9 /30 /200 8 MA G Y OT C B B USD U nited S ta tes 0 .02 7 .4 0.1 (3 .2) NM 3.3 x 8.7x 13 M ixi, Inc. 1 2/31 /200 8 21 21 TSE JPY J apan 3 20, 000 50 5.0 120 .6 4 5.9 38 .0% 1.0 x 6.3x NA M ode rn Times G rou p Mtg AB 1 2/31 /200 8 MT G B OM S EK S weden 139 .25 1,1 40.7 1 ,63 6.8 26 1.7 16 .0% - - NA M oggle , Inc 1 2/31 /200 8 MMOG OT C B B USD U nited S ta tes 2 7 2.6 NM (1 .1) NM 2.4 x - 3 M OK O.mobi L imited 1 2/31 /200 8 MK B AS X AU D Au s tra lia 0 .06 3 .4 1.0 (2 .1) NM 2.1 x 8.0x NA N E OW IZ G ames C orpo ra tion 1 2/31 /200 7 A0 956 60 K OS E KR W S o uth K orea 41, 450 28 7.7 130 .1 3 5.0 26 .9% 1.5 x 3.3x NA N etD ragon W ebS oft, Inc. 1 2/31 /200 8 77 7 S E HK HKD C hina 4 .12 28 1.0 87. 2 3 9.9 45 .7% - - NA N ete as e.co m I nc. 1 2/31 /200 8 NT E S N as da qG S USD C hina 24 2,9 66.8 451 .3 29 3.4 65 .0% - - NA N eXplore Corpora tion 9 /30 /200 7 N XP C OT C P K USD U nited S ta tes 0 .60 3 3.5 NM (4 .9) NM - - 19 N gi G roup Inc. 1 2/31 /200 8 24 97 TSE JPY J apan 18, 900 2 4.0 101 .1 3 1.1 30 .8% 0.2 x 1.0x NA N orthgate Te chnolo gies L imited 1 2/31 /200 8 59 005 7 BS E INR India 34 .50 2 3.8 133 .6 2 3.5 17 .6% 2.5 x 9.7x 286 Open T e xt Corp. 1 2/31 /200 8 OT E X N as da qG S USD C ana da 34 1,7 61.5 769 .3 19 5.0 25 .3% - - 3 ,40 0 Openwave S ys tems Inc. 1 2/31 /200 8 OP W V N as da qG S USD U nited S ta tes 0 .88 7 3.3 199 .6 (1 0.2) -5 .1% - - 627 P e rf ect W orld C o., Ltd. 1 2/31 /200 8 PWR D N as da qG S USD C hina 13 68 4.3 210 .3 11 3.8 54 .1% 2.4 x - NA P hoto Channel N etwork s Inc. 1 2/31 /200 8 T S XV : P N T S XV C AD C ana da 1 .49 4 0.4 16. 1 (0 .8) -4 .9% - - NA Qu epa s a C orp. 9 /30 /200 8 QP S A N as da qC M USD U nited S ta tes 1 1 4.4 0.1 (1 1.8) NM 0.0 x 0.1x 63 OA O R B C Information S ys tems 1 2/31 /200 7 R BC I R TS USD R us s ia 0 .48 6 5.9 141 .9 1 8.5 13 .1% - - NA S handa Interactive E ntertainme nt L td. 1 2/31 /200 8 S N DA N as da qG S USD C hina 36 2,5 25.5 522 .2 24 0.0 46 .0% 0.6 x 4.5x NA S hutte rf ly, Inc. 1 2/31 /200 8 S F LY N as da qG S USD U nited S ta tes 8 .56 21 5.3 213 .5 2 8.4 13 .3% 1.6 x 1 6.5 x 514 S K C ommunications Co ., Ltd. 1 2/31 /200 7 A0 662 70 K OS E KR W S o uth K orea 7, 820 23 2.1 149 .6 1 4.1 9 .4% 3.9 x 3 8.1 x NA S N AP Inte ra ctive , Inc. 9 /30 /200 8 S TVI OT C B B USD U nited S ta tes 0 .93 9 .9 2.3 0 .2 10 .1% 1.1 x - 5 S N M G lobal H oldings 9 /30 /200 8 S N MN OT C P K USD U nited S ta tes 0 0 .0 2.0 (0 .7) -3 4.8% 0.1 x - 33 S o cia l Media Ve nures , Inc. 1 2/31 /200 8 S MVI OT C P K USD U nited S ta tes 1 .20 0 .0 0.1 (0 .1) -6 0.5% 2.8 x 6.7x NA S o hu. com Inc. 1 2/31 /200 8 S OH U N as da qG S USD C hina 40 1,5 23.8 429 .1 18 0.5 42 .1% - - 3 ,19 7 S ite s ear ch C orpo ratio n 1 /31 /200 9 STPC OT C B B USD U nited S ta tes 3 .50 2 8.2 NM (1 .1) NM 0.8 x 3.9x 15 S park N etwor ks , Inc. 1 2/31 /200 8 LOV AME X USD U nited S ta tes 2 4 7.8 57. 3 1 2.4 21 .7% - - NA S pectrumDN A, Inc. 9 /30 /200 8 S P XA OT C B B USD U nited S ta tes 0 .19 9 .2 0.1 (2 .7) NM 15.4 x 3 1.1 x 7 T encent Holdings L td. 9 /30 /200 8 70 0 S E HK HKD C hina 56 12,9 17. 1 904 .1 44 7.9 49 .5% 0.2 x - 4 ,34 4 T he P arent C ompany 8/2/2008 K IDS .Q OT C P K USD U nited S ta tes 0 .05 1 .3 112 .0 (1 3.5) -1 2.0% - - 347 T he 9 L imited 1 2/31 /200 8 N CT Y N as da qG S USD C hina 14 36 2.3 249 .9 8 4.2 33 .7% - - NA T he S treet.com, Inc. 1 2/31 /200 8 TSC M N as da qG M USD U nited S ta tes 2 .07 6 3.2 71. 9 7 .0 9 .7% 4.6 x - 310 T otal S port Online A S 3 /31 /200 6 T OS O OT C NO NOK N orwa y 0 0 .2 2.1 (1 .1) -5 0.6% 0.2 x - 16 T ree.C om, Inc. 1 2/31 /200 8 TR EE N as da qG M USD U nited S ta tes 4 .66 4 6.5 228 .6 (2 3.9) -1 0.4% 0.1 x 3 1.3 x 700 U nis erve C ommu nications Corp. 1 1/30 /200 8 T S XV : US S T S XV C AD C ana da 0 1 .0 24. 2 0 .1 0 .4% 1.0 x 4.3x NA U nited Online Inc. 1 2/31 /200 8 U NT D N as da qG S USD U nited S ta tes 4 .28 35 1.6 669 .4 15 3.9 23 .0% 13.3 x - 1 ,46 9 U OMO Media , Inc 1 0/31 /200 8 U OMO OT C B B USD C ana da 0 6 .0 0.5 (0 .4) -9 1.6% 44.0 x - NA V O IS , Inc. 1 2/31 /200 8 V OIS OT C B B USD U nited S ta tes 0 .12 1 .0 0.0 (1 .3) NM - - 4 W ebze n Inc. 1 2/31 /200 8 W ZE N N as da qG M USD S o uth K orea 2 2 2.1 20. 6 (2 .1) -1 0.1% 2.9 x - 330 W izza rd S of twa re Corpora tion 9 /30 /200 8 W ZE AME X USD U nited S ta tes 0 .39 1 7.6 6.2 (6 .5) NM - - 110 W oo zyF ly, Inc. 9 /30 /200 8 W ZY F OT C B B USD U nited S ta tes 0 2 .6 0.0 NM NM - - 14 W orlds .com Inc. 9 /30 /200 8 W DD D OT C B B USD U nited S ta tes 0 .19 9 .7 0.1 NM NM - - 1 W ynds to rm C or por atio n NA W YND OT C B B USD U nited S ta tes 0 2 .2 NA NM NM 3.4 x 8.6x NA XIN G AG 9 /30 /200 8 O1B C XT R A E UR G ermany 28 .40 20 0.3 42. 5 1 6.5 38 .8% 1.9 x 8.4x 161 Y e dangOnline Co rp. 1 2/31 /200 7 A0 527 70 K OS E KR W S o uth K orea 8, 330 9 4.0 49. 5 1 1.1 22 .4% 0.5 x - NA Y nk K orea Inc. 1 2/31 /200 7 A0 237 70 K OS E KR W S o uth K orea 3 ,730 .00 6 .6 14. 1 (1 .1) -7 .6% 0.8 x - NA ZipLo cal Inc. 1 2/31 /200 8 T S XV : ZIP T S XV C AD C ana da 0 1 .0 2.6 (2 .8) NM - - NA H igh 12,9 17. 1 1 ,636 .8 44 7.9 65 .0% 44.0 x 3 8.1 x 4 ,344 Lo w 0 .0 0.0 -23.9 -9 8.9% - - 1 A vera ge 376.0 137.7 30.6 8.8% 4.5x 9.1x 555 M edian 2 8.2 46. 0 0 .2 16 .4% 1.3 x 6.4x 92 Figure 1. Web 2.0 Universe Summary Source. Capital IQ
  • Page 3 C A P I T A L M A R K E T S A C T I V I T Y (M & A A N D F I N A N C I N G ) March activity slows below busy February: W ith one week left in March, there have been 17 financings announced (total $105.0 million, average $6.2 million) compared to 25 financings announced in February, totalling $185.5 million, or $7.4 million on average (Figure 2). The average value for February was above the $6.8 million average for January, with four financings over $15 million in February (Twitter, Synthasite, Tremor Media, and Offerpal Media) vs. no deals over $15 million in January. There has been only one $15 million deal thus far in March – Vidyo. Financing Activity Last Three Months 250.0 8.0 7.0 200.0 6.0 5.0 150.0 (US$m) (US$m) 4.0 100.0 3.0 2.0 50.0 1.0 0.0 0.0 Jan-09 Feb-09 Mar-09 Total Average Figure 2. Financings, Last Three Months Source. Company reports Vidyo largest deal in March: The largest deal thus far in March is the $15 million Series D round for Vidyo (Figure 3). For additional details, see Figures 24 and 25 (at end of note).
  • (US$m) 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 Twitter Synthasite Tremor Media Source. Company reports Aster Data Systems Vidyo Offerpal Media Imagini Yodle Buzznet Emergent Game AdMob LendingClub SendMe Inc. Outbrain Figure 3. Capital Market Activity, Last Three Months Miva VirtuOz Auditude companies raising $48.0 million. SuperSecret RatePoint Nurien DECA IMVU Go Internet Media NewsGator One True Media Tvtrip Play Hard Sports SundaySky JibJab Xobni InsideView Kewego Tongxue SocialMedia Fliqz Motionbox Oodle Greystripe Wamba Gbox OMGPOP Geni Sportsblogs AboutUs TextDigger OneSpot Apture Simulmedia Mixpo FetchDog Virtual Fairground Tynt E-Global Sports Network Financing Summary - Last Three Months AnySource Media 7 Billion People FamilyLink.com mEgo Tripwolf WhistleBox Sports Composite DE Hunch Outright Mendeley Tvinci Filtrbox MMO Life AdultSpace Cake Financial Myngle Hubdub Snooth CoveritLive 33Across fav.or.it BackType Identi.ca Meez Pulse Entertainment Jan-09 Mar-09 Feb-09 Page 4 15 companies raising over $110 million (Figure 4). Social networking companies have the next highest totals, with 10 Video continues to be the most active sector: Activity over the last three months was busiest in the video sector, with
  • Page 5 Capital Market Activity by Sector - Last Three Months 120.0 100.0 80.0 (US$m) 60.0 112.3 40.0 48.0 42.3 42.3 20.0 35.0 26.5 25.0 22.5 20.9 15.6 15.0 12.4 12.0 12.0 11.5 11.4 10.0 9.5 6.2 5.5 4.3 4.1 3.2 2.0 1.3 0.0 Comment/Reputation Gaming Micromedia Wiki Travel RSS Microblog Media Mobile Publishing Online Learning Financial Services Infrastructure Lending Blog Mobile Ad Search Social Networks Virtual Goods Video Virtual World Aggregation Crowdsourced Ad Network Analytics Content # companies 15 10 7 5 1 4 2 4 2 2 1 3 1 1 2 1 1 2 3 1 1 1 2 1 1 Figure 4. Capital Market Activity, by Sector, Last Three Months Source. Company reports C A P I T A L M A R K E T S A C T I V I T Y (P R I C E P E R F O R M A N C E ) Price Performance: Our W eb 2.0 index (market-cap weighted) underperformed the NASDAQ composite index from mid 2008 until recently when it has moved sharply higher than the NASDAQ index (Figure 5).
  • Page 6 Web 2.0 Index Price Performance 140 120 100 80 60 40 20 0 3/24/2008 4/7/2008 4/21/2008 5/5/2008 5/19/2008 6/2/2008 6/16/2008 6/30/2008 7/14/2008 7/28/2008 8/11/2008 8/25/2008 9/8/2008 9/22/2008 10/6/2008 10/20/2008 11/3/2008 11/17/2008 12/1/2008 12/15/2008 12/29/2008 1/12/2009 1/26/2009 2/9/2009 2/23/2009 3/9/2009 3/23/2009 ^COMP - Share Pricing Index: Web 2.0 X (Market Cap) Figure 5. Web 2.0 Price Performance Source. Capital IQ Most companies rise – YedangOnline leads: Most of the companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with only 14 companies showing negative returns on the week. YedangOnline Corp. (A052770-KOSE) led the group with a 21.6% return over the past week. Sitesearch Corp. (STPC-OTCBB) had the worst return, dropping 30.0% in the week.
  • Page 7 1 Week P rice P erformance Y edangOnline Corp. 21.6% NetDra gon WebS oft, Inc. 21.2% 20.8% Frogs ter Interactive Pictures A G 20.2% Chines e G amer International K ings oft Co. Ltd. 14.3% CDC Corp. 10.9% 10.8% G amania Digital Entertainment Co., GigaMedia Ltd. 10.1% Tree.Com, Inc. 8.9% 8.7% G ungHo Online Entertainment, Inc. 7.9% Open Tex t Corp. NEOWIZ G ames Corporation 6.7% Neteas e.com Inc. 6.3% 6.3% Modern Times Group Mtg A B Webz en Inc. 6.1% HanbitS oft, Inc. 5.7% 5.4% The9 Limited 5.3% DA DA S pA TheS treet.com, Inc. 5.2% United Online Inc. 4.6% 4.1% A ctoz S oft Co., Ltd. Quepas a Corp. 3.5% Northgate Technologies Limited 3.4% 2.9% IA C/InterA ctiveCorp. 2.5% Y nk K orea Inc. Tencent Holdings Ltd. 2.4% Perf ect World Co., Ltd. 2.3% 1.9% Eolith Co. Ltd. Ngi G roup Inc. 1.4% S K Communications Co., Ltd. 1.3% Moggle, Inc 0.0% 0.0% A Q Interactive, Inc. S hutterfly , Inc. -1.0% S park Netw orks , Inc. -2.2% -2.4% S handa Interactive Entertainment G iant Interactive G roup, Inc. -3.3% X ING A G -3.4% G ameOn Co Ltd. -3.6% -4.0% S ocial Media V enures , Inc. LookS mart, Ltd. -4.8% Mix i, Inc. -5.3% -6.3% PhotoChannel Netw orks Inc. S ohu.com Inc. -11.3% G ree, Inc. -13.1% DigitalTow n, Inc. -16.7% -30.0% S ites earch Corporation -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% Figure 6. 1-Week Price Performance Source. Capital IQ
  • Page 8 INDUSTRY NEWS (PARTNERSHIPS, FINANCIAL RESULTS, NEW PRODUCTS) K ey Developments C ompany Headline Notes Lo ok S mart L td. Ann ounces C onde ns ed C o ns olida ted Look S ma rt Ltd. an noun ce d condens ed co ns olida ted u naudited ea rn in gs re su lts f or the fou rth qua rter and full yea r ende d De ce mbe r 31, L ookS mart, L td. U n audited E a rn ings R es ults for th e F ou rth Q uarte r a nd 2008 . R e ven ues fo r the f ourth quarte r of 20 08 we re $14 .9 million , a 0.2% decreas e f ro m $ 15.0 million in the f ourth quarte r o f 20 07. Net los s (Nas da qGM: L O OK ) F ull Y e ar E n ded December 31 , 20 08 ; An noun ce s for th e fo urth qu arter of 200 8 was $1 2.4 millio n or $ 0.73 per diluted s hare bas ed o n approxima tely 1 7.0 millio n weighted a ve ra ge s ha res Impa irme nt C harges fo r the F ourth Q u arter and F ull Y ea r outs ta nding compa re d to net in co me for th e fou rth qu arter of 200 7 of $13. 2 million or $0. 58 per diluted s ha re bas ed on approx imate ly 22. 9 E nde d Decembe r 31, 2 008 ; P rovides R e ve nue G u ida nce millio n weighted a ve ra ge s ha re s o uts tan din g. L os s from co ntinuing operation s for the fou rth qu arter of 2008 was $1 1.4 millio n compared to a fo r the Firs t Q uarter o f F iscal 20 09 lo ss from con tin uin g operations in th e fo urth qu arter of 200 7 of $0.7 million. G A A P net los s for the f ourth quarter wa s 12.4 5 million co mpa re d to G A AP n et of 13. 24 million for th e s ame period a y ear a go. On a n on-G AA P bas is , for th e fou rth qu arter of 200 8, no n-G AA P net los s (net lo ss be fore dis continue d operations an d ex cluding s tock bas ed compens ation and impa irme nt cha rges ) was $1.1 million compa re d to non - G AA P net los s of $0.2 million in the f ourth quarte r o f 20 07. C apital ex penditu re s, in cluding capitaliz ation o f interna lly develo ped so ftware, in th Lo ok S mart a nd D iigo P artne r to O ffe r E n hanced S o cial Look S ma rt Ltd. an noun ce d its rela tio ns hip with Diigo.com. U nder the new co mbina tio n, Lo ok smart will tra ns fer the F url so cial boo kmark in g L ookS mart, L td. B ook marking P latf orm techno lo gy and se rvice to Diigo.com in retu rn for a pote ntial equity po sition in the compan y. T he partners hip en ables Loo kS mart to deliver on (Nas da qGM: L O OK ) its s ta ted goal of narrowing corpo rate fo cu s while a ls o pro viding con tin ued participation in the rapidly ex pan din g k nowledge mana gement space. T h is relations hip will give us ers a robu st s et o f s ocia l book marking, re se arch and ann otation too ls . T h e integra tio n of F url with Diigo, in co njunction with the u pcoming rele as e of Diigo 4.0, will advance the D iigo team's goa l o f ta king the so cial boo kmark in g/an nota tio n to new heights . U n ite d O nline Inc. Ann ounce s E limin ation o f 50 U nited On line I nc. an noun ce d th at commencin g Ma rch 17, 2009 , th e F T D operating s egme nt o f company is implementing a redu ction in United O nli ne Inc. E mplo yee P o sitions at F T D O perating S egment force th at will res ult in th e elimin ation o f approximately 50 e mploy ee pos ition s, primarily in F T D’s D owners G ro ve , Illinois facility. T he (Nas da qGS : UNT D) elimina ted pos itio ns re pres ent les s th an 5 % of the F TD s egment’s globa l wo rk force. T he a ction is inte nded to reduce th e F T D s egme nt’s operating ex pens es to reflect th e C o mpa ny ’s previo us ly -co mmunicated outloo k for a decline in F TD s egment re ven ues du ring 2009 , prima rily as a res ult o f th e challe nging e co nomic e nvironment. IA S E n ergy , Inc. anno unced delay ed 1 0-Q filin g O n 03/17/2 009, IA S E ne rgy, Inc. a nnou nced that they will be unable to f ile th eir n ext 10-Q by the dea dline re quire d by th e S E C . IAS E ne rgy, Inc. (OT C B B :IAS C .A) J umbuck E nterta inmen t P ty Ltd. An noun ce s E a rn ings J u mbuck E ntertainment P ty Ltd. a nnou nced e arnin gs res ults for the half y ea r e nded Decembe r 3 1, 2 008. F or the period, the co mpany J umbuc k E nte rtainment P ty L td. R e su lts f or the Half Y ear E nded December 3 1, 2 008 re ported profit a fter ta x o f A U D 2, 721,0 00 a nd pre tax profit o f A U D 3,6 48,0 00 o n th e to tal reve nue of A U D 9 ,898 ,000 compared to prof it afte r (AS X :J MB ) tax of A U D 2,38 2,00 0 an d preta x pro fit of A U D 3,62 8,00 0 on the tota l revenu e of AU D 7,7 23,0 00 f or the sa me period las t y ear. E B IT DA for the perio d of AU D 4,6 90,0 00 a nd E B IT of AU D 3,65 9,00 0 fo r the perio d en ded December 31 , 200 8. R eturn o n equity for the period wa s 9.3% co mpared to 9.9 % of prio r yea r. E a rn ing per s ha re up 20.0 % from A U D 0.0 5 to A U D 0.0 6. S han da I nteractive E n tertainment Ltd. S ign s P artn ersh ip S h anda Intera ctive E nte rtain me nt L td. h as s ign ed partners hip with L ine ko ng E nte rtain me nt T ech nology C o. Ltd. on co operation of the latter's S handa Interactive E ntertainment with L ine ko ng E ntertainme nt T e ch nology C o. , Ltd web games . S handa's on line game platf orm will be ope n to Linek ong's game pro ducts , lik e the previous coo peration with its local pe ers L td. (Nas da qGS : S N DA) K ings of t C o. Ltd. an d S torm E n tertainment. UO MO Me di a, Inc (OT C B B : UOMO ) U O MO M edia, I nc ann ounced delay ed 10-Q filing O n 03/17/2 009, U O MO Me dia , In c anno unced that the y will be una ble to file their next 10-Q by th e de adlin e requ ired by the S E C . M OK O .mobi Limited R epo rts E arnings R es ults for the MO K O .mobi L imited reported e arnin gs res ults for th e firs t half en ded December 31 , 20 08. F or the perio d, the compan y re ported pretax los s MOK O. mobi L imi te d (AS X: MK B ) F irs t Half E nded December 3 1, 20 08 of A U D 1 ,555 ,500 and lo ss a fter tax o f A U D 1, 233, 700 or AU D 0.0 2 pe r sh are on tota l reven ue o f A U D 40 7,10 0 compared to pre tax los s of AU D 1,6 88,60 0 an d los s afte r tax of A U D 1 ,688 ,600 or A U D 0. 03 per s hare o n to tal re ve nue of A U D 9 44,3 00 f or the sa me period a ye ar ago . S a les revenu e was A U D 2 99,9 00 compa re d to AU D 820 ,400 re ported a y ear a go. E B IT was a negative of A U D 1 ,555 ,100 compared to a nega tive E B IT of AU D 1,6 88,6 00 f or the sa me period a ye ar ago . R eturn on equ ity was a negative of 7 9.0% co mpared to a n ega tive return on e quity of 9 9.5% for th e s ame period a y ear a go. S ites earch C orpo ra tio n A nno unces R es ignation of B rian S ites ea rch C orporation anno unced the re signa tio n of B rian L u as a Dire cto r at h is requ es t. M r. Lu s erved as an o uts ide Director for the S ites ea rch C orporation Lu as a Director co mpany s ince April, 200 8. (O TC B B : S T P C ) DA DA S pA R eports R e ve nue R es ults for th e Y ear 20 08 DAD A S pA repo rted revenu e res ults for th e y ear 20 08. F or the ye ar, the company repo rted its revenue ris e to E U R 32 3.9 millio n, u p by 5. 6% DADA S pA (C M:D A) on the y ear. E DG AR On line Inc. an d A cce lerize New M edia In c. E DG A R O nlin e In c. and Acceleriz e Ne w Media Inc. an nou nced th at they have co llaborated o n marke tin g fo ur new se rvices that pro vide re al- Accel eri ze New Media , Inc. C o llaborate on Mark eting F our New S ervices time and his to rical fin ancia l data, in cluding exe cu tive compe ns ation, and S E C filings. Now a nyo ne can acces s co mpreh ens ive co mpa ny data (O TC B B : AC L Z); E DG AR O nli ne from re al-time S E C filings an d s ee top-line trends o r XB R L-tagged f ina ncial s tateme nts , pro viding a greate r level of bus ines s trans pa ren cy Inc. (Nas daqC M: E DG R ) than ever bef ore. X B R L is a common s tandard fo r f ina ncia l data. T he n ew s ervice will be ava ilable a t www.S E C f ilin gs .co m and provided in four a lte rn ative pack ages , ra nging f ro m les s tha n $2 0 pe r mo nth for company track in g, s ea rche s, alerts and E x ce l downloads to $4 00 per mo nth for pack ages tailo re d to the specific nee ds of profes s io nals who rely on complex mo deling, cus tom ratios an d interoperability betwe en applica tio ns . T ence nt H ol dings L td. (S E HK : 7 00) T en ce nt Ho ldings Ltd. R epo rts C ons olida ted U nau dited T encent Holdings Ltd. repo rted con so lidate d un audite d ea rnings res ults fo r the fourth quarte r and yea r ende d De ce mbe r 31, 2008 . F or th e E arnings R es ults fo r the Fo urth Q ua rter and Y e ar E nded quarte r, the company repo rte d prof it of C N Y 8 76,1 49,0 00 o r C NY 0.48 4 pe r bas ic a nd C N Y 0 .474 per diluted s hare o n revenue s of C NY De ce mbe r 31, 2008 ; B oard o f Dire ctors R ecomme nds 2,09 7,38 1,00 0 compared to pro fit of C NY 745, 290, 000 or C NY 0.4 10 per bas ic and C NY 0.40 0 pe r dilute d s hare on revenu es of C NY F inal Dividen d, P ay able on May 2 7, 20 09 2,02 4,47 4,00 0 repo rted in the th ird quarter o f 20 08. P rofit a ttributable to equity holders was C NY 86 9,09 7,00 0 again st C NY 737 ,123 ,000 in the sa me period o f previo us ye ar. P ro fit bef ore income tax fo r the period was C NY 93 6,83 7,00 0 again st C NY 802 ,389 ,000 , repo rted in the third qua rter of 2008 . C apita l e xpe nditure was C NY 450. 1 million for the fou rth qu arter of 2008 as compared with C NY 590 .9 million for the previou s quarte r. F or the ye ar ended De ce mber 31, 200 8, th e compan y reported profit of C NY 2,81 5,65 0,00 0 or C NY 1 .552 per bas ic an d C NY 1. 514 per diluted s ha re on reven ues of C NY 7,15 4,54 4,00 0 compared to profit of C NY 1,56 8,00 8,00 0 or C N Y 0 .880 per bas ic an d C NY 0. 853 per diluted s ha re on reven ues of C NY 3,82 0,92 3,00 0 in th e previous y ear. P rofit attribu table to equ ity h olders wa s C NY 2,78 4,57 7,00 0 agains t C N B igstring C orp. A nno unces B oard C hanges ; La unches O n Ma rch 1 2, 2 009, dire ctors T odd R os s and Marc Dutton tende re d th eir res ignation s from the B oa rd of Directors of B igs trin g C o rp., citin g B igs tring C orp. (OT C B B : B S G C ) In ce ntive -B as ed S ocial Netwo rk , P eo ple S tring the cu rren t advers e e co nomic climate and the need to focus on oth er bus ines s activitie s as the re as ons fo r their res ign ations . T h eir re signa tions were e ffective immediate ly . An in ce ntive-ba se d s ocia l n etwork th at pays u se rs to receive re gular dire ct ma il as well as for performing a ho st of internet a ctivities h as been la unche d by th e company . C alled P e opleS tring, it gen erates revenu e fo r us ers through an opt-in direct mail pro gra m and their us e o f email, ins tan t mes sa ging, video email, file s torage and s hoppin g. In addition , P eopleS tring's techn olo gy allows u se rs to gen erate additional re ve nue by crea tin g a pers onal af filia te n etwork throu gh s igning u p friends a nd bus ine ss es through multiple digital bo nds . T h e us er who crea tes his or he r own af filiate n etwork will gen erate income each time an y o ther u se r in the affiliate netwo rk e arns money as we ll. Here's how the o pt-in dire ct ma il s egment of the s ocial netwo rk wo rk s : U s ers ta ke a s ho rt 30-que stion s urvey th at h elps P e opleS tring build a ta rget demographic pro file o f him or her. T he u se rs indicates th e max imum numbe r o f of fers they wou ld lik e to re ce ive daily through regu lar mail or e C o rn erW orld C orporation ann ounced delay ed 1 0-Q filing O n 03/18/2 009, C orne rW o rld C orporation a nno unced that they will be una ble to f ile th eir n ext 10-Q by th e de adline required by the S E C . C orne rW orl d C orporati on (O TC B B : C W R L ) S pectrumDN A, Inc. (O T C B B : S PX A) S pectrumDNA Inc. S igns S trate gic P artne rs hip S pectrumD NA I nc. an noun ce d a stra tegic partn ersh ip with F E A R ne t and the ir plans to launch the exclus ive Ho rror A ddictio nary. F E A R ne t A greement with F E AR n et ma rk s th e s econd C omcas t Network s property to laun ch a bra nded ve rs ion o f T he Addiction ary wo rd pla y engine. S pectrumDNA's product, T he A ddictionary , currently lice ns ed by major media o utlets including E ! E nte rtain me nt, NB C U nivers al, an d C omedy C entral, is a highly fle xible and programmable en gine o f engage men t (or 'E nginet') with cons tan tly evolving features and fun ction s that can be eas ily conf igu re d and re -bra nded des igned to increas e traffic, ex tend audien ce engagemen t an d de liver long-term R OI to its community owner.
  • Page 9 T he S tree t.com Inc. Announce s W orkf orce R eductio n T heS treet. co m Inc. announce d a re duction in s ta ff that will y ie ld an e xpe cted $ 2.4 millio n in annualiz ed co st s avings. T his reductio n T heS treet.com , Inc. re pres ents 1 8 po sitions , a pprox imately 6% o f the company 's work force, spre ad a cros s variou s functions a nd locations . In additio n, the (Nas da qGM: T S C M) co mpany is e liminating three pos itio ns tha t ha d previo us ly be en o pen. F ollowing this a ctio n, the company will ha ve approx imately 29 0 emplo ye es . P re vious ly , the compa ny had anno unced actio ns tha t redu ce d he adcount by 11 % in 20 08, the deferral of sa lary increa se s throughout the company fo r 2 009 and the elimina tio n of the 200 8 bo nus fo r a ll employ ees . W izz ard S of tware C o rporation R e ports P re liminary W iz z ard S oftwa re C orporation reporte d preliminary earnings res ults for the y ear of 200 8. F or the y ear, the co mpa ny recorded revenues of W izzard S oftware C orpora ti on E arnings R es ults fo r the Y ea r of 2 008 $6,1 08,1 40, an increas e o f $9 44,6 49, or approx imately 18 % , from revenu es of $5,1 63,4 91 in 2 007. T his increas e wa s due primarily to the (AME X: W ZE ) ongo ing growth and ex pans ion o f media and po dcas ting s ervices and he althcare operations . Ne t los s ava ilable to commo n s hareholders decreas ed 44% while net los s decreas ed 25% . B as ic and dilu ted los s pe r co mmon share was $0 .23 in 2008 , compared to $ 0.44 in 200 7. A s of D ecember 31s t, 200 8, W iz zard had ca sh on hand of $ 1,73 0,36 1. W e bze n Inc. R epo rts E a rnings R es ults for the F ull Y ea r W ebz en Inc. reported earnings res ults for the fu ll ye ar of 2008 . F or the y ear, the compa ny re ported ordinary los s of K R W 13, 464, 277, 296 W ebzen Inc. (K O S E : A069080) of 200 8 and operating lo ss o f K R W 7 ,046 ,263, 810 co mpared to ordinary lo ss o f K R W 6, 957, 392, 404 and operating lo ss o f K R W 13 ,998 ,937 ,267 for the sa me period a ye ar ago . A cce lerize New M edia A ppoints J ef f McC o llum as O n F ebrua ry 27 , 20 09 the B oard of Directors of Accele riz e New Media I nc. ha s appo inted M r. J eff M cC ollum, the He ad o f the company 's Accel eri ze New Media , Inc. E xecutive O ff icer Lead G ene ra tio n Divis ion as ex ecutive officer. Mr. McC ollum s erved a s the compa ny's Head of L ead G e neration since M arch 20 07. B ef ore (O TC B B : AC L Z) jo ining the co mpa ny , he was V ice P res ide nt o f S ale s for eF o rce M edia, where he was res ponsible fo r crea ting a mark et, understanding the techno lo gy, and generating dema nd f or s ale s lea ds within s eve ra l indu s tries from 2 004 through 200 7. T ence nt H ol dings L td. (S E HK : 700) T ence nt Ho ldings S ee ks A cquis itions Liu Zhiping, P res ident of T ence nt H oldings Ltd. sa id during a co nference call with inves tors following the rele as e of the company 's 20 08 financial re port on March 1 8, that the e co nomic climate provide s good opportunities for mak ing a cquis itio ns . He adde d that T e ncent inte nds to buy an A s ia -bas ed game develope r in 2009 . T ence nt's ne t prof it totaled R MB 86 9.1 millio n for the f orth qu arter of 200 8, u p 17 .9% quarter- on-qua rter. S NA P I nteractive Lau nches iP hone(T M) M obile Dating S NA P Interactive I nc. announce d that its mobile dating applica tio n 'A re Y ou I nteres ted? ' has bee n approved by A pple(R ) and is now S NAP Interactive , Inc . A pplication available in the iP hone (T M ) A pps store . T he S N AP mobile app is an ex tens ion a nd e volution of S NA P 's popu lar F a ce book (R ) P latf orm dating (O TC B B : S T V I) app 'A re Y o u Interes ted? ', which pre se ntly has more tha n 12 million u se rs . S NA P 's new iP hone app allows u se rs to : B ro wse pho tos of singles in their a re a and ta p 'Y es ' o n pe ople they lik e; vew their 'Matche s' and find o ut who lik es the m; check out the 'B u zz ' a nd meet s ingle s in their area who a re online right now; and contact s ingle s: s end and re ce ive wink s and me ss ages . T he new a pp will be free to download in its initial day s, howe ver the company is carefully considering a n appropria te revenu e mode l f or implementa tio n s hortly. B ey ond C omme rce Inc. A nno unces the B eta Launch of B e yond C o mmerce Inc. anno unced a B eta la unch o f i-S U P P LY .com, its ne w E -comme rce widget s to re. T he i-S U P P LY widget store will B eyond C omm erce , Inc . its New 2 .0 E -C omme rce W idget S to re , i-S U P P LY .com allow a ny W eb property to mo netiz e ex is ting tra ffic by simply cutting and pas ting a fe w lines o f code to ins ta ntly create a s to re front on their (O TC B B : B YO C ) site. P articipating W eb pro perties will be a ble to choos e f ro m a lmos t 2 Million brand name products a t everyday low prices and cus tomize the lo ok and feel of the ir s toref ront. i-S U P P LY crea tes a value -add to the se owne rs by handling product s electio n, pricing, cus tomer s upport, billing and s hipping fo r any s ale s gene ra ted by its widge t. A n a dvanced se lection of fu nctio nality a nd f eatu re s will be added in the next ve rs ion, which pla n to lau nch in s econd qu arter. T he S tree t.com Inc. Decla re s Qu arterly Dividend P ay able T heS treet. co m Inc. announce d that its bo ard of dire cto rs has declared the compa ny's quarte rly ca sh dividend on its common s to ck . T he T heS treet.com , Inc. on March 3 1, 2 009 ca sh dividend of $0. 025 per s hare o f commo n s tock will be pay able on Ma rch 3 1, 2 009, to all s hareholders of record at the clo se of bus ines s (Nas da qGM: T S C M) on M arch 17, 200 9. IA S E nergy S e ek s F ina ncing IA S E nergy , I nc. s aid in S E C F orm 10-Q , “W e a nticipate that we will need $500 ,000 to finance o ur ope ra tio ns over the nex t 12 months and IAS E ne rgy, Inc. (OT C B B :IAS C .A) anticipate that we will obtain s aid financing by receiving financial su pport from re lated partie s or throu gh the s ale of our s ecuritie s. W ork ing ca pital is not adequa te to meet development co sts for the ne xt twelve months .” It adde d, “W e will require additiona l fina ncing if we are to co ntinue as a going concern. T he C ompany receive s interim s uppo rt from aff iliated compa nie s and pla ns to ra is e a dditio nal capital throu gh debt and/or equity f ina ncings . T he C ompany may also rais e additiona l fu nds thro ugh the exe rcise of wa rrants and s tock options, if exe rcise d.” Figure 7. Key Developments Source. Capital IQ VALUATION MMOG companies lead market-cap charts: Nine companies in our Web 2.0 universe top US$1 billion in market capitalization (Figure 8). Sixty-five of the 90 companies have market caps under US$100 million, with 30 under $10 million. Online gaming companies dominate the top of the list with four of the top six by market cap.
  • Page 10 Market C ap (US D m) Tencent Holdings Ltd. Netea s e. com Inc. 2966.8 S ha nda Interactive Entertainment Ltd. 2525. 5 2100.1 IA C/InterA ctiv eCorp. Open Tex t Corp. 1761. 5 G iant Interactiv e G roup, Inc. 1606. 9 1523.8 S ohu. com Inc. Modern Times G roup Mtg A B 1140. 7 G ree, Inc. 1048. 0 684. 3 Perfec t World Co. , Ltd. Mix i, Inc. 456.9 0 505. Chines e G amer Internationa l 430. 8 K ings oft Co. Ltd. The9 Limited 362. 3 United Online Inc. 351.6 G igaMedia Ltd. 327. 7 287.7 NEOWIZ G ames Corpora tion NetDragon WebS of t, Inc. 281. 0 S K Communications Co. , Ltd. 232. 1 215. 3 S hutterf ly , Inc. XING A G 200.3 G amania Digital Entertainment Co. , Ltd. 147.5 134.8 G ungHo Online Enterta inment, Inc. CDC Corp. 113. 3 DA DA S pA 107. 7 94. 0 Y edangOnline Corp. G ameOn Co Ltd. 79.5 Openw a ve S y s tems Inc. 73.3 72.6 Moggle, Inc A ctoz S of t Co. , Ltd. 71.9 DigitalTow n, Inc. 67. 9 65. 9 OA O R B C Inf orma tion S y s tems TheS treet.com, Inc. 63. 2 HanbitS of t, Inc. 55. 4 47. 8 S park Netw orks , Inc. Tree.Com, Inc. 46. 5 B roadWebA s ia Inc. 43.3 42.0 K aboos e Inc. PhotoChannel Netw orks Inc. 40.4 J umpTV Inc. 36.8 33.5 NeXplore Corporation Dolphin Digital Media , Inc. 30.2 S ites earch Corporation 28.2 25.3 G eoS entric Oy j 24.0 Ngi G roup Inc. Northgate Technologies Limited 23.8 Webz en Inc. 22.1 21.0 Frogs ter Intera ctive Pictures A G A Q Intera ctive, Inc. 18.7 Eolith Co. Ltd. 18.2 17.9 DXN Holdings B hd G ravity Co., L td 17.8 Wiz z ard S oftw a re Corporation 17.6 17.4 L ookS ma rt, Ltd. J umbuck Entertainment Pty Ltd. 17.3 B ey ond Commerce, Inc. 17.2 16. 7 Idea Edge, Inc. Fluid Mus ic Ca nada, Inc. 14. 9 Quepas a Corp. 14. 4 14. 2 Ex tens ions , Inc. S NA P Intera ctive, Inc. 9. 9 Worlds . com Inc. 9. 7 9. 2 S pectrumDNA , Inc. Lingo Media Corpora tion 7. 6 Magnitude Information S y s tems Inc. 7. 4 6. 6 Y nk K orea Inc. CornerWorld Corporation 6. 6 UOMO Media, Inc 6. 0 5. 4 A cceleriz e New Media, Inc. L iv eWorld Inc. 4. 6 B etaw ave Corpora tion 4. 4 4. 1 is eemedia Inc. B right Things plc 3. 4 MOK O. mobi Limited 3. 4 3. 2 IA S Energy , Inc. 2. 6 Wooz y Fly , Inc. Wy nds torm Corpora tion 2. 2 The Parent Company 1. 3 1. 0 Unis erve Communications Corp. V OIS , Inc. 1. 0 ZipLocal Inc. 1. 0 0. 7 Financial Media G roup, Inc. B igs tring Corp. 0. 7 Digita lPos t Intera ctive, Inc. 0. 7 0. 2 Total S port Online A S A s s ociated Media Holdings Inc. 0. 1 China G atew ay Corpora tion 0. 0 0. 0 S ocial Media V enures , Inc. Dibz International, Inc. 0. 0 S NM G loba l Holdings 0. 0 0 500 1,000 1, 500 2, 000 2, 500 3, 000 3,500 4, 000 Figure 8. Market Cap Ranking Source. Capital IQ TEV/Revenue (LTM) averages 4.6x: The overall average TEV/Revenue (LTM) multiple for our group is 4.6x – up from 3.9x last week (Figure 14). However, this is skewed by VOIS (VOIS-OTCBB) at 44.0x, Gree (3633-TSE) at 32.6x and Bigstring (BSGC-OTCBB) at 28.9x. The median is only 1.0x. Note that we exclude multiples greater than 50x. Twenty-nine of the companies have multiples under 1.5x.
  • Page 11 T E V/L T M R evenue (x) 50. 0 44.0 45. 0 40. 0 32.6 35. 0 28.9 30. 0 25. 0 18.3 20. 0 15.4 14. 1 13.13.3 1 15. 0 10.5 8. 0 10. 0 A vera ge, 4.6 4.6 3.83.93.93.9 2.52.82.9 3.0 3.33.33. 4 3.6 5. 0 1.31.51. 6 1.9 2.12.12.42.42.42. 5 1.1 0.00.00.10.10. 20.20.20.20.3 0.30.40. 50.50.60.7 0.80.80.80. 80.9 1.01.01. 01.01.01.1 0. 0 N E O WIZ G ames C orporation MO K O .mobi L imited UO MO Media, Inc G ungH o O nline E ntertainment, Inc. J umbuck E nterta inment P ty L td. G a mania Digital E ntertainment C o., Ltd. C hines e G amer Interna tional U nis erve C ommunications C orp. O AO R B C Information S y s tems N orthgate T echnologies L imited DXN Holdings B hd F luid Mus ic C a nada , Inc. T ree.C om, Inc. G a meO n C o Ltd. C DC C orp. S K C ommunica tions C o., Ltd. DigitalP os t Intera ctive, Inc. B ey ond C ommerc e, Inc. T he P a rent C ompany Modern T imes G roup Mtg AB G eoS entric O y j S N M G loba l Holdings Lingo Media C orporation C ornerWorld C orporation United O nline Inc . P hotoC ha nnel Network s Inc. O pen T ex t C orp. S NAP Intera ctive, Inc. J umpT V Inc . IAC /InterAc tiveC orp. S pa rk N etwork s , Inc . E olith C o. Ltd. G igaMedia Ltd. NetDra gon WebS oft, Inc . is eemedia Inc . S ohu.com Inc . Mix i, Inc . XIN G AG F rogs ter Intera ctiv e P ic tures AG As s ociated Media Holdings Inc . T encent Holdings Ltd. G ree, Inc . V O IS , Inc . B right T hings plc S ocial Media V enures , Inc . L iveWorld Inc . Y nk K orea Inc . H anbitS oft, Inc . K aboos e Inc . ZipLoca l Inc . Y edangO nline C orp. B igs tring C orp. T otal S port O nline AS S hutterfly , Inc . Acceleriz e New Media , Inc . K ings oft C o. Ltd. B eta wav e C orporation DADA S pA Ac toz S oft C o. , Ltd. Wiz z ard S oftware C orporation Figure 9. TEV/Revenue Ranking Source. Capital IQ TEV/Revenue (LTM) by country/exchange: W e have also calculated multiples based on where the companies are listed or domiciled. Figure 10 shows the average TEV/Revenue multiples by stock exchange. The OTCBB has the largest number of companies (22), trading at an average multiple of 8.4x (down from 9.0x last week). On a geographic basis, the United States has the most companies (40), trading at an average of 5.3x revenue (up from 4.5x last week) (Figure 11). Ten of the companies are Canadian (average 7.2x revenue). Average TEV/LTM Revenue - By Exchange Average TEV/LTM Revenue - By Country 16.0 16.0 14.1 14.1 14.0 14.0 12.0 10.0 12.0 10.0 8.4 10.0 (x) 8.0 7.2 5.4 (x) 8.0 6.0 3.6 3.6 5.4 5.4 4.0 3.0 2.6 2.5 6.0 5.3 1.5 1.4 1.4 1.3 1.3 0.8 0.7 0.6 0.5 2.0 3.0 0.2 0.0 2.5 4.0 1.5 0.0 1.4 1.3 0.7 0.5 2.0 OTCNO OTCPK OTCBB NasdaqGM GTSM NasdaqCM 0.4 NasdaqGS TSE SEHK KOSE OSE CM TSX BSE XTRA NYSE KLSE AIM TSXV ASX 0.2 0.0 0.0 Germany Kingdom Canada United India China Japan Malaysia Hong Italy South Korea Kong States Taiwan Australia Norway Sweden United 1 5 22 2 12 9 2 3 1 2 5 3 1 7 1 1 5 1 1 1 # Companies 1 10 9 3 40 2 1 2 9 6 1 1 1 1 1 # Companies Figures 10 & 11. TEV/Revenue Ranking (Exchange, Country) Source. Capital IQ TEV/EBITDA (LTM) averages 9.4x: The average multiple for the 30 companies with positive EBITDA (and multiples under 100x) is 9.4x LTM EBITDA (up from 8.8x last week), led by SNAP Interactive’s (STVI-OTCBB) 38.1x multiple (Figure 12). Eighteen of the companies have EBITDA multiples under 7x. The median multiple is 6.4x (vs. 5.9x last week).
  • Page 12 T E V/L T M E B IT DA (x) 38. 1 40.0 35.0 31. 1 31.3 30.0 25.0 22. 3 20.0 16.5 15.0 10. 7 A verage, 9.4 9.7 9. 7 9. 0 8. 6 8.7 8. 4 10.0 8. 0 6. 7 6.6 6. 3 5.5 5.4 5. 5 4. 8 4.5 4. 3 4. 1 3.9 3. 7 3.3 5.0 2. 8 1. 0 1.1 0.1 0.0 NE O WIZ G ames C orporation J umbuck E ntertainment P ty L td. G ungH o O nline E ntertainment, Inc. G amania Digital E ntertainment C o., L td. C hines e G amer International U nis erve C ommunications C orp. O AO R B C Information S y s tems G ameO n C o Ltd. C DC C orp. Northgate T echnologies Limited DXN H oldings B hd S K C ommunications C o. , Ltd. Modern T imes G roup Mtg AB U nited O nline Inc. O pen T ex t C orp. S NAP Interactive, Inc. NetDragon WebS oft, Inc. S park Network s , Inc. IAC /InterActiveC orp. G igaMedia Ltd. S ohu. com Inc. XING AG Mix i, Inc. T enc ent H oldings Ltd. Y eda ngO nline C orp. K aboos e Inc. S hutterfly , Inc. K ings oft C o. Ltd. DADA S pA Actoz S oft C o., L td. Figure 12. TEV/EBITDA Ranking Source. Capital IQ TEV/EBITDA (LTM) by country/exchange: Figure 13 shows the average TEV/EBITDA multiples by stock exchange. The OTCBB has the largest number of companies (22), trading at an average multiple of 13.1x, while companies on the TSXV have the highest multiples (31.3x). On a geographic basis, the United States has the most companies (40), trading at an average of 12.9x EBITDA (Figure 14). Ten of the companies are Canadian (average 5.5x EBITDA). Average TEV/LTM EBITDA - By Exchange Average TEV/LTM EBITDA - By Country 35.0 31.3 16.0 30.0 13.4 14.0 25.0 12.0 12.9 20.0 10.0 11.7 (x) 13.112.9 9.7 15.0 9.0 (x) 11.7 8.0 8.0 10.210.0 9.7 8.0 7.5 10.0 7.5 6.7 6.0 5.5 5.5 5.0 4.3 4.1 3.7 2.4 5.0 0.1 0.0 4.3 4.0 4.1 0.0 OTCNO OTCPK 2.0 OTCBB NasdaqGM GTSM NasdaqCM 3.7 KOSE NasdaqGS TSE CM TSX BSE XTRA NYSE KLSE TSXV ASX 0.0 0.0 Germany United India Hong Canada China Japan Malaysia Italy South Korea Kong States Taiwan Australia Norway # Companies 5 22 7 2 3 12 1 2 2 9 1 5 1 1 5 1 1 # Companies 40 9 3 1 1 2 2 10 9 6 1 1 1 Figures 13 & 14. TEV/EBITDA Ranking (Exchange, Country) Source. Capital IQ P/E (LTM) averages 16.0x: The average multiple for the 31 companies with positive earnings (and multiples under 100x) is 16.0x LTM EPS (up from 15.1x last week), led again by TheStreet.com (TSCM-NASDAQ) 66.7x multiple (Figure 15). Sixteen of the companies have P/E multiples under 10x. The median is just 9.9x.
  • Page 13 P /E L T M (x) 66.7 70. 0 60. 0 55. 1 48.4 50. 0 42.2 40. 0 36. 0 27.5 30. 0 24.0 18. 8 15. 7 16.3 16.8 20. 0 A verage, 16.0 14.0 11. 5 12.7 9.9 11.1 9.7 9.3 8. 0 8.0 7.0 10. 0 6.2 3.5 3. 5 3.2 2. 1 2.0 1.6 1.6 1.1 1.2 0. 0 NE O WIZ G ames C orporation J umbuck E ntertainment P ty Ltd. G amania Digital E ntertainment C o., Ltd. C hines e G amer Interna tiona l G iant Interactiv e G roup, Inc . G ameO n C o Ltd. N orthgate T ec hnologies Limited DXN Holdings B hd Modern T imes G roup Mtg AB Neteas e.com Inc . S handa Interac tive E ntertainment Ltd. N gi G roup Inc . O pen T ex t C orp. S NAP Interac tive, Inc . T heS treet. com, Inc . T he9 Limited Worlds .com Inc . NetDra gon WebS oft, Inc . G igaMedia Ltd. S ohu.com Inc . IAC /InterAc tiveC orp. Mix i, Inc . T encent Holdings Ltd. S pa rk N etwork s , Inc. XING AG Y edangO nline C orp. P erfect World C o., Ltd. K ings oft C o. Ltd. S hutterfly , Inc. DADA S pA Ac toz S oft C o., Ltd. Figure 15. P/E Ranking Source. Capital IQ P/E (LTM) by country/exchange: Figure 16 shows the average P/E multiples by stock exchange. The OTCBB has the largest number of companies (22), trading at an average multiple of 20.0x. On a geographic basis, the United States has the most companies (40), trading at an average of 13.2x earnings (Figure 17). Ten of the companies are Canadian (average 6.9x EPS). Average P/E - By Exchange Average P/E - By Country 40.0 45.0 36.0 38.8 40.0 35.0 35.0 36.0 30.0 30.0 31.7 23.5 25.0 25.0 20.0 (x) 23.5 17.8 20.0 17.8 (x) 16.3 20.0 14.0 16.3 15.0 12.7 9.7 14.0 15.0 10.0 6.2 6.0 13.2 4.0 3.5 6.9 5.0 10.0 2.4 6.2 3.5 0.0 5.0 2.4 OTCPK OTCBB GTSM NasdaqGS KOSE TSE CM BSE XTRA TSX NYSE KLSE TSXV ASX 0.0 Germany India China United Canada Malaysia Japan Italy South Korea States Taiwan Australia 12 1 7 22 2 2 2 3 1 1 9 5 1 5 # Companies 1 9 9 3 2 2 40 10 1 1 6 # Companies Figures 16 & 17. P/E Ranking (Exchange, Country) Source. Capital IQ
  • Page 14 UPCOMING EVENTS Upc oming E vents E vent Date L ocation Webs ite T he B o ld and the B logging Marc h 2 4 T oronto http: //prof ectio. c om/events /power-bre ak fas t-s emina rs /th e-bold-and-th e-blo gging W eb 2. 0 E xpo Marc h 3 1-April 3 S a n F rancisc o http: //www.web2ex po. c om /s f% 2 0rel= Me sh 200 9 April 7-8 T oronto www. me shco nference . co m Figure 18. Upcoming Events Source. Company reports E arnings C alendar C ompany Date & Time Quarter C onf C all Deta ils G igaMed ia Ltd. ( Nas daqG S : G IG M) T ues day, M arch 31, 200 9 8: 00 A M ( E DT ) Q4 200 8 N /A W izz ard S oftware C orpora tion (AM E X :W Z E ) W edn es day, A pril 01 , 200 9 11 : 00 AM ( E DT ) Q4 200 8 8 77-407 -0 782 Figure 19. Earnings Calendar Source. Company reports
  • Page 15 C omparable C ompany Analys is > W eb 2 .0 P ric e P erformanc e C ompa ny Na me C ur rency T ic ker E x change U S D Ma rket C ap ($m) C urrent Pric e 1 Wk 1 Mth 3 Mth 6 Mth 1 Yr 52 We ek Acce le riz e N ew Me dia, Inc. US D A CL Z OT C B B 5 .4 0.2 0 -13. 0% -33. 3% -4 2.9% -6 3.6 % -72 .2% -74. 4% Actoz S of t C o., L td. KR W A 052 790 KO SE 7 1.9 1 1,30 0.0 0 4.1 % 3.7% 9 .2% 27 .0% 35.8 % -19. 9% AQ Inte ractive , Inc. JPY 3 838 TSE 1 8.7 3 3,40 0.0 0 0.0 % 3.7% 17 .6% -5 0.9 % -85 .0% -85. 8% As s ocia ted Media H oldings Inc. US D A S MH OT C P K 0 .1 0.0 0 0.0 % -72. 0% -5 3.3% -9 3.6 % 27.3 % -97. 2% B igstring Corp. US D B S GC OT C B B 0 .7 0.0 1 3.7 % 0.0% -2 6.3% -6 5.0 % -92 .6% -93. 7% B e tawave Corpora tion US D B W AV OT C B B 4 .4 0.1 5 -16. 7% 0.0% -3 1.8% -5 5.9 % -63 .4% -66. 7% B e yond Commerce, Inc. US D B Y OC OT C B B 1 7.2 0.4 2 -23. 6% -6.7 % -4 4.0% -8 3.2 % -66 .4% -87. 3% B right T hings plc GBP A IM:B G T AI M 3 .4 0.0 2 16.7 % 6.1% 84 .2% 40 .0% -43 .5% -58. 8% B roa dW ebAs ia Inc. US D B W BA OT C P K 4 3.3 0.5 1 -32. 0% -66. 0% -4 9.5% -6 0.8 % -80 .4% -83. 0% C DC C orp. US D C H IN .A N as da qG S 11 3.3 1.0 5 14.1 % 2 8.1 % -3 .7% -5 0.5 % -71 .8% -75. 0% C hina G ate wa y C orpora tion US D CGWY OT C B B 0 .0 0.0 0 -33. 3% -33. 3% -8 0.0% -9 4.4 % -99 .7% -99. 7% C hine s e G amer International TWD G TS M:3 083 GT S M 45 6.9 18 1.5 0 20.2 % 6 3.5 % 10 2.1% 17 2.9% 69.6 % 0.0 % C ornerW orld C orporation US D CWR L OT C B B 6 .6 0.1 4 -6.7 % -65. 9% -6 8.9% -7 7.0 % -88 .8% -88. 8% D ADA S pA E UR C M :DA CM 10 7.7 4.9 0 6.1 % -16. 9% -2 9.9% -4 8.3 % -61 .3% -69. 7% D XN Holdings B hd MY R DXN KL SE 1 7.9 0.2 8 0.0 % -3.4 % -2 6.3% -2 6.3 % -42 .3% -50. 0% D ibz Inte rnational, Inc. US D DIB Z OT C P K 0 .0 0.0 0 -90. 0% -90. 0% -9 0.0% -9 8.0 % -98 .0% -98. 0% D igitalP ost Inte ra ctive , Inc. US D DG L P OT C B B 0 .7 0.0 1 1 50. 0% 2 5.0 % -5 2.4% -7 9.2 % -96 .3% -97. 0% D igitalT own, Inc. US D DG T W OT C B B 6 7.9 2.5 0 -16. 7% 2 5.0 % -2 3.1% -4 1.2 % 13.6 % -59. 0% D olphin Digital Me dia, Inc. US D DP DM OT C B B 3 0.2 0.6 2 26.5 % 5 5.0 % -2 2.5% -3 9.2 % NM -45. 1% E olith C o. L td. KR W A 041 060 KO SE 1 8.2 54 0.0 0 1.9 % -7.7 % -6 .9% -1 2.9 % -50 .7% -61. 8% E xte ns ions , Inc. US D E XT I OT C P K 1 4.2 0.1 5 -25. 0% -25. 0% 18 5.7% 50 .0% 0.0 % -85. 1% F inancia l Media G roup, Inc. US D F NGP OT C B B 0 .7 0.0 1 -12. 0% -63. 3% -8 4.3% -9 3.5 % -93 .1% -98. 9% F luid M us ic Ca nada, Inc. C AD T S X:F MN TSX 1 4.9 0.3 5 -12. 5% -41. 7% 75 .0% -7 5.0 % NM -82. 8% F rogs te r Interactive P icture s AG E UR FR G XT R A 2 1.0 6.6 0 24.5 % 5 9.8 % 19 .3% 13 .8% 59.0 % -13. 7% G a ma nia Digital E ntertainment C o., L td. TWD 6 180 GT S M 14 7.5 3 2.8 0 10.8 % 5 0.8 % 75 .9% 82 .2% 13.3 % -11. 2% G a me On C o L td. JPY 3 812 TSE 7 9.5 8 0,00 0.0 0 -3.6 % -11. 1% -3 7.4% -3 8.5 % -31 .6% -51. 1% G e oS e ntric O yj E UR G E O1V H LS E 2 5.3 0.0 3 -25. 0% -25. 0% -2 5.0% -4 0.0 % -57 .1% -57. 1% G iant Intera ctive G roup, Inc. US D GA NYS E 1,6 06. 9 7.1 1 -2.3 % 1 6.9 % 17 .9% 1 .6% -38 .2% -58. 7% G iga Media Ltd. US D G IG M N as da qG S 32 7.7 6.0 7 11.5 % -4.2 % 3 .3% -2 4.4 % -60 .4% -69. 5% G ravity C o., L td US D G RV Y N as da qG M 1 7.8 0.6 4 1.6 % -8.6 % 18 .5% -4 3.4 % -56 .8% -68. 0% G ree, Inc. JPY T S E :36 32 TSE 1,0 48. 0 4,57 0.0 0 -13. 1% -8.8 % -1 1.8% NM NM -27. 5% G ungH o O nline E ntertainment, Inc. JPY 3 765 OS E 13 4.8 11 4,50 0.0 0 8.7 % -5.2 % 4 .6% -4 1.9 % -35 .7% -73. 7% H anbitS oft, Inc. KR W A 047 080 KO SE 5 5.4 3,50 0.0 0 5.7 % 3.2% 9 .4% 1 .3% -32 .0% -50. 1% IAC /InterActiveC orp. US D I ACI N as da qG S 2,1 00. 1 1 4.9 0 2.9 % -1.0 % -6 .3% -1 2.3 % -63 .6% -70. 5% IAS E nergy, Inc. US D I AS C .A OT C B B 3 .2 0.0 5 -35. 7% 1 14.3 % 50 .0% -7 5.0 % -85 .0% -87. 1% IdeaE dge, Inc. US D O TC B B :ID AE OT C B B 1 6.7 0.4 0 3.9 % -14. 1% -5 3.5% -8 3.9 % -60 .5% -86. 0% is ee media Inc. C AD IEE T S XV 4 .1 0.1 0 25.0 % 1 1.1 % 12 2.2% -2 8.6 % -69 .7% -77. 3% J umbuck E ntertainment P ty Ltd. AU D A S X:J M B AS X 1 7.3 0.5 0 11.1 % 2 2.0 % 28 .2% -7.4% -28 .6% -28. 6% J umpT V Inc. C AD T S X:J T V TSX 3 6.8 0.4 0 0.0 % 2.6% 14 .3% -4 2.9 % -35 .5% -68. 8% K a boos e Inc. C AD T S X:K AB TSX 4 2.0 0.3 7 4.2 % -2.6 % 48 .0% -5 1.3 % -74 .8% -77. 2% K ings oft Co. Ltd. HKD 3 888 S E HK 43 0.8 3.1 1 14.3 % 1 0.7 % 31 .2% 37 .6% 51.7 % -27. 8% Lingo Media Corporation C AD T S XV :LM T S XV 7 .6 0.7 3 -18. 9% -8.8 % -2 7.0% -5 7.1 % -59 .0% -66. 8% Live World Inc. US D L VW D OT C P K 4 .6 0.1 5 -25. 0% 2 00.0 % 32 8.6% -1 6.7 % -21 .1% -80. 0% LookS mart, Ltd. US D L OOK N as da qG M 1 7.4 1.0 2 -2.9 % -18. 4% -2 8.7% -6 1.8 % -68 .2% -78. 8% M agnitude Information S ys tems Inc. US D M AG Y OT C B B 7 .4 0.0 2 -10. 5% -19. 0% 13 .3% -2 9.2 % -15 .0% -43. 3% M ixi, Inc. JPY 2 121 TSE 50 5.0 32 0,00 0.0 0 -5.3 % -18. 2% -4 4.5% -5 7.9 % -70 .6% -70. 9% M ode rn Times G roup Mtg AB SE K MT G B OM 1,1 40. 7 13 9.2 5 6.7 % 1 9.8 % -1 4.0% -4 7.4 % -66 .4% -69. 4% M oggle , Inc US D M MOG OT C B B 7 2.6 2.0 0 0.0 % 0.0% 33 .3% NM NM 0.0 % M OK O.mobi L imited AU D MKB AS X 3 .4 0.0 6 0.0 % 5 0.0 % -7 .7% 50 .0% 50.0 % -15. 5% N E OW IZ G ames C orpora tion KR W A 095 660 KO SE 28 7.7 4 1,45 0.0 0 6.7 % 2 3.4 % 10 7.3% 93 .2% 15.1 % -2.2 % N etDragon W ebS oft, Inc. HKD 7 77 S E HK 28 1.0 4.1 2 21.2 % 4 6.1 % 45 .6% -1 5.6 % -57 .0% -69. 7% N ete as e.com I nc. US D NT E S N as da qG S 2,9 66. 8 2 4.1 1 10.9 % 2 5.4 % 15 .6% 5 .1% 27.4 % -11. 2% N eXplore Corpora tion US D N XP C OT C P K 3 3.5 0.6 0 -36. 2% -36. 8% -4 0.0% 15 .4% NM -58. 6% N gi G roup Inc. JPY 2 497 TSE 2 4.0 1 8,90 0.0 0 1.4 % -1.3 % -6 2.8% -8 4.5 % -88 .5% -89. 0% N orthgate Te chnologies L imited IN R 5 900 57 BS E 2 3.8 3 4.5 0 3.4 % -10. 3% -4 8.9% -8 6.0 % -92 .3% -92. 7% Open T e xt Corp. US D O TE X N as da qG S 1,7 61. 5 3 3.9 4 8.3 % 2.8% 12 .4% -4.0% 8.3 % -13. 2% Openwave S ys tems Inc. US D O PW V N as da qG S 7 3.3 0.8 8 3.5 % 0.0% 57 .1% -2 6.1 % -65 .5% -69. 2% P e rfect W orld C o., Ltd. US D P W RD N as da qG S 68 4.3 1 2.9 7 2.2 % 1.3% -2 1.0% -4 4.9 % -44 .1% -61. 3% P hotoChannel N etwork s Inc. C AD T S XV :P N T S XV 4 0.4 1.4 9 -6.9 % -22. 4% 21 .1% -3 0.7 % -56 .9% -64. 1% Quepa s a C orp. US D Q PSA N as da qC M 1 4.4 1.1 4 -0.9 % -16. 8% -3 6.7% -6 4.8 % -57 .0% -67. 1% OA O R B C Information S ys tems US D R BC I R TS 6 5.9 0.4 8 97.9 % 5 8.3 % -5 .0% -9 0.3 % -95 .3% -95. 1% S handa Interactive E ntertainme nt L td. US D S NDA N as da qG S 2,5 25. 5 3 6.4 0 4.5 % 1 5.6 % 21 .6% 19 .4% 22.6 % -4.8 % S hutte rf ly, Inc. US D S F LY N as da qG S 21 5.3 8.5 6 -0.3 % 9.9% 29 .9% -5.8% -44 .1% -52. 4% S K C ommunications Co., Ltd. KR W A 066 270 KO SE 23 2.1 7,82 0.0 0 1.3 % 2 4.3 % 44 .8% -3 6.9 % -49 .7% -60. 3% S N AP Inte ra ctive , Inc. US D S T VI OT C B B 9 .9 0.9 3 -4.9 % -6.8 % 33 .1% 33 .1% 33.1 % -15. 3% S N M G lobal H oldings US D S NM N OT C P K 0 .0 0.0 0 0.0 % -66. 7% -9 7.1% -9 9.9 % -100 .0% -100 .0% S ocia l Media V e nures , Inc. US D S MVI OT C P K 0 .0 1.2 0 -4.0 % -7.0 % 11 .1% 38 0.0% NM -76. 0% S ohu. com Inc. US D S OH U N as da qG S 1,5 23. 8 3 9.9 8 -11. 5% -11. 5% -6 .6% -3 5.5 % -13 .1% -56. 3% S ite s earch C orporation US D S TPC OT C B B 2 8.2 3.5 0 -30. 0% NM NM NM NM -30. 0% S park N etworks , Inc. US D L OV AM E X 4 7.8 2.3 3 -0.6 % -7.4 % -8 .8% -4 1.9 % -46 .4% -50. 1% S pectrumDN A, Inc. US D S P XA OT C B B 9 .2 0.1 9 5.6 % 9 0.0 % -9 .5% -5 2.5 % NM -68. 3% T encent Holdings L td. HKD 7 00 S E HK 12, 917 .1 5 5.7 0 2.4 % 2 2.0 % 14 .8% -5.1% 22.1 % -22. 7% T he P arent C ompany US D K IDS .Q OT C P K 1 .3 0.0 5 6.0 % -91. 7% -9 2.9% -9 7.0 % -99 .1% -99. 2% T he 9 L imited US D NC TY N as da qG S 36 2.3 1 3.5 1 4.5 % 1 0.7 % 0 .4% -2 4.2 % -29 .5% -52. 6% T he S treet.com, Inc. US D T S CM N as da qG M 6 3.2 2.0 7 8.4 % -5.0 % -3 1.9% -6 5.5 % -75 .2% -78. 2% T otal S port Online A S N OK T OS O OT C N O 0 .2 0.0 4 0.0 % 0.0% -2 0.0% -2 0.0 % -33 .3% -60. 0% T ree.C om, Inc. US D TR EE N as da qG M 4 6.5 4.6 6 3.6 % 1 4.5 % 10 6.2% -3 4.6 % NM -58. 0% U nis erve C ommunications Corp. C AD T S XV :U S S T S XV 1 .0 0.0 5 0.0 % -37. 5% 66 .7% -7 2.2 % -87 .7% -88. 9% U nited Online Inc. US D UNTD N as da qG S 35 1.6 4.2 8 10.0 % -5.3 % -2 2.5% -5 6.9 % -59 .1% -65. 8% U OMO Media , Inc US D U OMO OT C B B 6 .0 0.0 7 16.7 % -12. 5% -3 6.4% -7 5.9 % -87 .3% -91. 3% V O IS , Inc. US D V OIS OT C B B 1 .0 0.1 2 -70. 0% -84. 0% -6 0.0% -8 7.4 % NM -97. 9% W ebze n Inc. US D W ZE N N as da qG M 2 2.1 1.8 6 12.7 % 6 9.1 % 91 .8% 22 .4% -39 .6% -58. 2% W iz za rd S of twa re Corpora tion US D W ZE AM E X 1 7.6 0.3 9 2.6 % -32. 8% -5 4.7% -7 3.1 % -81 .6% -83. 8% W oozyF ly, Inc. US D W ZY F OT C B B 2 .6 0.1 5 0.0 % 0.0% NM NM NM -96. 3% W orlds .com Inc. US D W DDD OT C B B 9 .7 0.1 9 -2.6 % 5 4.2 % 68 .2% -4 5.6 % -47 .1% -58. 9% W ynds torm C orporation US D W YND OT C B B 2 .2 0.1 2 0.0 % 0.0% 0 .0% -4 5.5 % NM -85. 9% XIN G AG E UR O 1B C XT R A 20 0.3 2 8.4 0 -2.1 % -5.0 % 5 .2% -3.4% -22 .4% -39. 1% Y e dangOnline Corp. KR W A 052 770 KO SE 9 4.0 8,33 0.0 0 21.6 % 2 8.2 % 34 .4% 13 .8% -15 .4% -33. 6% Y nk K orea Inc. KR W A 023 770 KO SE 6 .6 3,73 0.0 0 2.5 % -5.6 % -3 2.3% -6 6.4 % -79 .5% -81. 3% ZipLocal Inc. C AD T S XV :ZIP T S XV 1 .0 0.0 2 2 00. 0% -25. 0% 50 .0% -8 1.3 % -92 .3% -92. 9% H igh 2 00. 0% 2 00.0 % 32 8.6% 38 0.0% 69.6 % 0.0 % Low -90. 0% -91. 7% -9 7.1% -9 9.9 % -100 .0% -100 .0% A vera ge 376.0 2.6% 1.2% 5.1% -28.9% -44.2% -62.9% M edian 1.3 % -1.3 % -4 .3% -4 1.9 % -57 .0% -68. 2% Figure 20. Price Performance Source. Capital IQ
  • Page 16 C omparable C ompany A nalys is > W eb 2.0 V aluatio n Multiples P rimary US D Market TE V/LT M TE V/ N TM TE V/LT M TE V/NTM C om pany Nam e S ec to r Co untry E xc hange Tic ker Cap ($m) R evenue R evenue E BITDA E BITDA P /LT M E P S P /NT M E P S P /TangBV Acce le rize N ew Me dia, Inc. D irect Marketing U nite d S tates OT C B B AC LZ 5. 4 3.0 x - - - - - - Actoz S of t C o., L td. G aming S outh K ore a K OS E A 052 790 71. 9 0.9 x - 4.8 x - 14 .0x - 1 .4x AQ Inte ractive , Inc. G aming J a pan TSE 3 838 18. 7 - - - - - - 0 .3x As s ocia ted Media Holdings Inc. Mobile U nite d S tates OT C P K AS MH 0. 1 8.0 x - - - - - - B igstring Corp. Ins ta nt Mes s aging U nite d S tates OT C B B BS G C 0. 7 28.9 x - - - - - - B e tawave Corpora tion Me dia U nite d S tates OT C B B B WA V 4. 4 2.4 x - - - - - - B e yond Commerce, Inc. S ocia l Ne tworking U nite d S tates OT C B B BYO C 17. 2 18.3 x - - - - - - B right T hings plc S ocia l Ne tworking U nite d K ingdom AIM AIM:B G T 3. 4 14.1 x - - - - - - B roa dW ebAs ia Inc. S ocia l Ne tworking U nite d S tates OT C P K B WB A 43. 3 - - - - - - - C D C C orp. G aming H ong K ong N as da qG S C HIN .A 1 13. 3 0.4 x 0.4x 9.0 x 7.4x - 1 6.2 x - C hina G ate wa y C orpora tion Mobile U nite d S tates OT C B B CG W Y 0. 0 0.0 x - - - - - - C hine s e G amer International G aming T a iwan GTS M G T S M:308 3 4 56. 9 10.5 x - 22.3 x - 27 .5x - 9 .0x C ornerW orld C orporation C ontent U nite d S tates OT C B B CWR L 6. 6 13.1 x - - - - - - D AD A S pA S ocia l Ne tworking Italy CM CM:DA 1 07. 7 0.7 x - 4.1 x - 6. 2x - - D XN Holdings B hd S ocia l Ne tworking Malays ia KL SE D XN 17. 9 0.5 x - 3.7 x - 3. 5x - 0 .4x D ibz Inte rnational, Inc. S NS A pps U nite d S tates OT C P K D IB Z 0. 0 - - - - - - - D igitalP ost Inte ra ctive , Inc. C ontent U nite d S tates OT C B B DGL P 0. 7 3.9 x - - - - - - D igitalT own, Inc. S ocia l Ne tworking U nite d S tates OT C B B D G TW 67. 9 - - - - - - - D olphin D igital Me dia, Inc. S ocia l Ne tworking U nite d S tates OT C B B DP DM 30. 2 - - - - - - - E olith C o. L td. G aming S outh K ore a K OS E A 041 060 18. 2 1.0 x - - - - - - E xte ns ions , Inc. C ontent U nite d S tates OT C P K E XT I 14. 2 - - - - - - - F inancia l Media G roup, Inc. D irect Marketing U nite d S tates OT C B B F NGP 0. 7 - - - - - - - F luid Mus ic Ca nada, Inc. Me dia U nite d S tates TSX T S X:F MN 14. 9 0.0 x 0.0x - - - - 1 .2x F rogs te r Interactive P icture s AG G aming G ermany XT R A F RG 21. 0 3.8 x - - - - - 1 .9x G a ma nia D igital E ntertainment C o., L td. G aming T a iwan GTS M 6 180 1 47. 5 1.1 x - 6.6 x - 16 .8x - 2 .2x G a me On C o L td. G aming J a pan TSE 3 812 79. 5 0.3 x - 1.1 x - 8. 0x - 1 .1x G e oS e ntric O yj Mobile F inland H LS E G E O1V 25. 3 3.6 x - - - - - 5 .3x G iant Intera ctive G roup, Inc. G aming C hina NYS E GA 1,6 06. 9 - - - - 1. 6x 1 1.9 x 0 .3x G iga Media Ltd. G aming T a iwan N as da qG S G IG M 3 27. 7 1.3 x 1.3x 5.5 x 5.1x 9. 7x 9.2x 3 .1x G ravity C o., L td G aming S outh K ore a N as da qG M GR VY 17. 8 - - - - - - - G ree, Inc. S ocia l Ne tworking J a pan TSE T S E :3 632 1,0 48. 0 32.6 x - - - - - 1 6.0x G ungH o O nline E ntertainment, Inc. Me dia J a pan OS E 3 765 1 34. 8 1.0 x - 5.5 x - - - - H anbitS of t, Inc. G aming S outh K ore a K OS E A 047 080 55. 4 0.8 x - - - - - 1 .9x IAC /InterActiveC orp. Me dia U nite d S tates N as da qG S IAC I 2,1 00. 1 0.2 x 0.3x 5.4 x 2.1x 15 .7x 2 3.7 x 1 .0x IAS E nergy, Inc. V ide o C anada OT C B B IA S C .A 3. 2 - - - - - - - IdeaE dge, Inc. S ocia l Ne tworking U nite d S tates OT C B B OT C B B :IDA E 16. 7 - - - - - - 1 2.3x is ee media Inc. C ontent C anada T S XV IE E 4. 1 2.1 x - - - - - 2 .4x J umbuck E ntertainment P ty Ltd. S ocia l Ne tworking A us tralia AS X AS X:J MB 17. 3 1.0 x - 2.8 x - 8. 0x - 2 .0x J umpT V Inc. V ide o C anada TSX T S X:J T V 36. 8 3.9 x - - - - - 2 .6x K a boos e Inc. C ontent C anada TSX TS X:K AB 42. 0 0.8 x 0.7x 10.7 x 5.4x - - - K ings oft Co. Ltd. G aming C hina S E HK 3 888 4 30. 8 3.3 x - 9.7 x - 12 .7x - 2 .8x Lingo Media Corporation Le arning C anada T S XV TS XV :LM 7. 6 2.5 x - - - - - - Live World Inc. S ocia l Ne tworking U nite d S tates OT C P K LV W D 4. 6 0.3 x - - - - - 2 .2x LookS mart, Ltd. D irect Marketing U nite d S tates N as da qG M L OOK 17. 4 - - - - - - 0 .6x Magnitude Information S ys tems Inc. S ocia l Ne tworking U nite d S tates OT C B B MAG Y 7. 4 - - - - - - - Mixi, Inc. S ocia l Ne tworking J a pan TSE 2 121 5 05. 0 3.3 x - 8.7 x - 24 .0x - 3 .9x Mode rn Times G roup Mtg AB Me dia S we den OM MT G B 1,1 40. 7 1.0 x 1.0x 6.3 x 7.4x 3. 2x 7.3x - Moggle , Inc G aming U nite d S tates OT C B B MMO G 72. 6 - - - - - - - MOK O.mobi L imited S ocia l Ne tworking A us tralia AS X MK B 3. 4 2.4 x - - - - - 3 .1x N E OW IZ G ames C orpora tion G aming S outh K ore a K OS E A 095 660 2 87. 7 2.1 x - 8.0 x - 16 .3x - 9 .6x N etD ragon W ebS oft, Inc. G aming C hina S E HK 777 2 81. 0 1.5 x - 3.3 x - 9. 3x - 1 .5x N ete as e.com I nc. G aming C hina N as da qG S NT E S 2,9 66. 8 - - - - 2. 0x 1 2.5 x 0 .6x N eXplore Corpora tion C ontent U nite d S tates OT C P K N XP C 33. 5 - - - - - - - N gi G roup Inc. Me dia J a pan TSE 2 497 24. 0 - - - - 7. 0x - 0 .4x N orthgate Te chnologies L imited D irect Marketing India BS E 59 005 7 23. 8 0.2 x - 1.0 x - 1. 6x - - Open T e xt Corp. C ollaboration C anada N as da qG S O TE X 1,7 61. 5 2.5 x 2.2x 9.7 x 8.4x 36 .0x 1 3.9 x - Openwave S ys tems Inc. Mobile U nite d S tates N as da qG S OP W V 73. 3 - - - - - 2 9.3 x 1 .0x P e rf ect W orld C o., Ltd. G aming C hina N as da qG S PW R D 6 84. 3 - - - - 1. 2x 6.4x 0 .4x P hotoChannel N etwork s Inc. D igital Imaging C anada T S XV T S XV :P N 40. 4 2.4 x 1.7x - 5.1x - 1 9.3 x 9 .1x Quepa s a C orp. S ocia l Ne tworking U nite d S tates N as da qC M QP S A 14. 4 - - - - - - 5 .9x OA O R B C Information S ys tems Me dia R us s ia R TS R B CI 65. 9 0.0 x - 0.1 x - - - - S handa Interactive E ntertainme nt L td. G aming C hina N as da qG S S NDA 2,5 25. 5 - - - - 2. 1x 1 2.4 x 1 .0x S hutte rf ly, Inc. D igital Imaging U nite d S tates N as da qG S S FL Y 2 15. 3 0.6 x 0.6x 4.5 x 4.0x 48 .4x - 1 .3x S K C ommunications Co., Ltd. S e arch S outh K ore a K OS E A 066 270 2 32. 1 1.6 x - 16.5 x - - - - S N AP Inte ra ctive , Inc. D ating U nite d S tates OT C B B S TVI 9. 9 3.9 x - 38.1 x - 55 .1x - 7 .3x S N M G lobal H oldings Me dia U nite d S tates OT C P K S N MN 0. 0 1.1 x - - - - - - S ocia l Media V e nures , Inc. S ocia l Ne tworking U nite d S tates OT C P K S MV I 0. 0 0.1 x - - - - - - S ohu. com Inc. G aming C hina N as da qG S S OH U 1,5 23. 8 2.8 x 2.4x 6.7 x 5.5x 9. 9x 9.2x 4 .7x S ite s earch C orporation S ocia l Ne tworking U nite d S tates OT C B B STPC 28. 2 - - - - - - 4 0.1x S park N etworks , Inc. S ocia l Ne tworking U nite d S tates AME X L OV 47. 8 0.8 x - 3.9 x - 11 .5x - - S pectrumDN A, Inc. Me dia U nite d S tates OT C B B S P XA 9. 2 - - - - - - 9 .9x T encent Holdings L td. P orta l C hina S E HK 700 12,9 17. 1 15.4 x - 31.1 x - 42 .2x - 1 5.1x T he P arent C ompany Me dia U nite d S tates OT C P K K ID S .Q 1. 3 0.2 x - - - - - - T he 9 L imited G aming C hina N as da qG S NC T Y 3 62. 3 - - - - 1. 1x 9.0x 0 .1x T he S treet.com, Inc. Me dia U nite d S tates N as da qG M TSCM 63. 2 - - - - 66 .7x - 0 .6x T otal S port Online A S Me dia N orway OT C NO T OS O 0. 2 4.6 x - - - - - - T ree.C om, Inc. P orta l U nite d S tates N as da qG M TR E E 46. 5 0.2 x 0.2x - - - - 0 .7x U nis erve C ommunications Corp. S ocia l Ne tworking C anada T S XV T S XV :U S S 1. 0 0.1 x - 31.3 x - - - - U nited Online Inc. Me dia U nite d S tates N as da qG S U N TD 3 51. 6 1.0 x 0.7x 4.3 x 2.8x - 5.9x - U OMO Media , Inc Me dia C anada OT C B B U OMO 6. 0 13.3 x - - - - - - V O IS , Inc. S ocia l Ne tworking U nite d S tates OT C B B VOIS 1. 0 44.0 x - - - - - 2 .3x W ebze n Inc. G aming S outh K ore a N as da qG M W ZE N 22. 1 - - - - - - 0 .0x W iz za rd S of twa re Corpora tion P odcas ting U nite d S tates AME X W ZE 17. 6 2.9 x - - - - - - W oozyF ly, Inc. S ocia l Ne tworking U nite d S tates OT C B B W ZY F 2. 6 - - - - - - - W orlds .com Inc. C ontent U nite d S tates OT C B B W DD D 9. 7 - - - - 3. 5x - - W ynds torm C orporation C ontent U nite d S tates OT C B B W YND 2. 2 - - - - - - - XIN G AG S ocia l Ne tworking G ermany XT R A O 1B C 2 00. 3 3.4 x - 8.6 x - 18 .8x - 5 .1x Y e dangOnline Corp. G aming S outh K ore a K OS E A 052 770 94. 0 1.9 x - 8.4 x - 11 .1x - 5 .2x Y nk K orea Inc. G aming S outh K ore a K OS E A 023 770 6. 6 0.5 x - - - - - - ZipLocal Inc. D ire ctory C anada T S XV T S XV :ZIP 1. 0 0.8 x - - - - - - H igh 12,9 17. 1 44.0 x 2.4x 38.1 x 8.4x 66 .7x 2 9.3 x 4 0.1x Low 0. 0 0.0 x 0.0x 0.1 x 2.1x 1. 1x 5.9x 0 .0x A vera ge 376. 0 4.6x 1.0x 9.4x 5.3x 16.0x 13.3x 4.4x Median 23. 9 1.6 x 0.7x 6.4 x 5.3x 9. 9x 1 2.2 x 2 .2x Figure 21. Valuation Comparison Source. Capital IQ
  • Page 17 C omparable C ompany Analys is > Web 2.0 S ummary by C ountry C ompany Na me US D Market C a p ($ m) Avg US D Mark et C ap ($m ) US D L T M Total R ev ($m ) US D L T M Total E B I TDA ($m) E B IT DA % 40 23 , 298 . 4 2, 588. 7 3 , 194 . 2 1, 58 0.1 4 8.0% U nited S tates C h ina C hina C hina C hina C hina 10 3 , 352 . 3 1, 140. 7 3 , 114 . 3 26 1. 7 3 7.2% C an ada Un ite d S tate s S weden U nited S ta tes S we den A us tra lia 9 1 , 903 . 5 310. 7 1 , 636 . 8 18 6. 8 2 9.3% C hina C a nada T a iwa n S we den C a na da T a iwa n 9 1 , 810 . 0 301. 7 888 . 9 13 3. 7 2 6.2% S outh K o re a J apan J apa n C ana da J apan J a pa n 6 1 , 140 . 7 190. 4 520 . 1 12 5. 9 1 7.6% J a pa n S wede n C a na da S outh K orea U nited S tates I ndia T a iwa n 3 T a iwa n 932 . 2 H ong K ong 113. 3 J apa n 506 . 2 T aiwan 8 4.5 S wede n 1 6.0% 2 805 . 7 110. 6 428 . 1 5 9.2 1 6.0% A us tra lia S outh K orea G erma ny H ong K ong S outh K o re a I ta ly 2 221 . 3 107. 7 348 . 7 3 6.7 1 3.3% G erma ny G erma ny Ita ly T aiwa n Ita ly M a la ys ia 1 113 . 3 89. 5 229 . 8 2 3.5 1 3.1% Norway Ho ng K on g S outh K o re a Italy Ind ia R uss ia 1 107 . 7 83. 8 141 . 9 1 8.8 5 . 5% H on g K ong I ta ly U nited S tates R us s ia H ong K ong S outh K orea 1 65 . 9 65. 9 133 . 6 1 8.5 4 . 4% F inla nd R u ss ia R us s ia Ind ia R us s ia H ong K on g 1 25 . 3 25. 3 76 . 3 1 3.2 -9 . 0% Ita ly F inland F inla nd Ma la ysia G erma ny U nite d S tate s 1 23 . 8 23. 8 47 . 9 1 0.1 -10 . 9% U nited K ing dom I ndia In dia G erman y Ma lays ia G erm any 1 20 . 7 17. 9 13 . 5 2.6 -17 . 3% In dia A us tralia Ma lay s ia Austra lia A us tra lia C a nada S weden 1 M ala ys ia 17 . 9 A us tralia 10. 3 F in la nd 5 .6 Norway -1.1 Norwa y -50 . 6% 1 3.4 3. 4 2 .1 -1.6 NA R us s ia Un ite d K in gdom U nited K ing dom Norwa y U nited K ingd om U nite d K ingdom 1 0.2 0. 2 0 .2 -1 2.8 NA Ma lay s ia No rwa y Norway U nited K ingd om F in lan d F inla nd G rand Total 90 G rand T ota l 33 ,842.2 G ra nd Total 376. 0 G rand Total 137 .7 G rand T otal 2,54 0.0 G ra nd Tota l 8 .8% Figure 22. Comparison by Country Source. Capital IQ C omparable C ompany Analys is > Web 2.0 S ummary by Exc hange C ompany Na me US D Market C a p ($ m) Avg US D Mark et C ap ($m ) US D L T M Total R ev ($m ) US D L T M Total E B I TDA ($m) E B IT DA % 22 13 , 628 . 8 4, 542. 9 1 , 636 . 8 1, 41 0.4 6 1.9% OTCB B S E HK S E HK OM Na s da qG S NY S E 12 13 , 005 . 5 1, 606. 9 482 . 4 52 3. 9 4 3.0% Nas da qG S Na sdaqG S NY S E Nas da qG S S E HK S E HK 9 1 , 675 . 2 1, 140. 7 366 . 0 26 1. 7 3 7.2% OTCP K TS E OM S E HK OM AS X 7 1 , 606 . 9 1, 083. 8 233 . 3 14 4. 4 3 2.0% K OS E NY S E Na s da qG S NY S E NY S E GTS M 5 1 , 140 . 7 335. 0 229 . 8 11 3. 1 2 7.8% TS E OM TS E CM TSE TS E Nas da qG M 5 K OSE 765 . 8 G TSM 302. 2 RTS 141 . 9 K OS E 5 4.5 Na sda qG S 2 7.5% 5 604 . 5 134. 8 133 . 6 3 6.7 2 1.7% T S XV GTS M OSE BS E CM A ME X 3 302 . 4 110. 6 115 . 6 3 6.6 1 7.8% S E HK OTCB B XT R A OSE GTSM OS E 3 221 . 3 109. 4 84 . 3 2 3.5 1 7.6% TS X XTR A K OS E Nas da qG M BSE BSE 2 166 . 9 107. 7 78 . 1 2 0.6 1 6.0% A ME X Na sdaqG M CM TSE OSE OM 2 134 . 8 65. 9 76 . 3 1 8.5 1 6.0% XT R A OS E RTS KLSE RTS CM 2 107 . 7 33. 4 74 . 1 1 3.2 1 3.3% ASX CM Na s da qG M GTSM XT R A K LS E 2 96 . 9 32. 7 66 . 3 1 0.1 1 3.1% GTSM OTCP K A ME X KOS E K LS E R TS 1 93 . 7 31. 2 31 . 7 5.9 5 . 8% O T C NO TS X TS X AM E X A ME X K OSE HLS E 1 RTS 65 . 9 HL S E 25. 3 TSX 25 . 3 ASX 2.6 Na sda qG M 1 . 1% 1 65 . 4 23. 8 24 . 0 -1.1 -3 . 9% OSE A ME X BSE XT R A O T C NO TS X 1 54 . 1 17. 9 21 . 0 -1.6 -10 . 9% CM T S XV K LS E OT C PK A IM XTR A 1 25 . 3 14. 4 9 .5 -5.8 -15 . 6% B SE HL S E Na s da qC M TSXV TSX T S XV 1 23 . 8 13. 7 6 .8 -9.7 -29 . 4% Nas da qC M BS E OTCB B AS X TSXV OTCP K 1 20 . 7 10. 8 5 .6 -1 1.8 -40 . 5% NY S E AS X T S XV HLS E Na s da qC M OTCB B 1 17 . 9 10. 8 2 .1 -1 2.8 -50 . 6% A IM K LS E OTCP K O T C NO HL S E O T C NO 1 14 . 4 10. 3 1 .6 -1 4.2 NA OM Na sdaqC M ASX OT C BB Na s da qG M A IM 1 3.4 3. 4 0 .2 -2 7.2 NA R TS A IM A IM AI M OTCPK HL S E K LS E 1 O T C NO 0.2 O T C NO 0. 2 Nas da qC M 0 .1 OTCBB -5 1.6 Na sda qC M NA G rand Total 90 G rand T ota l 33 ,842.2 G ra nd Total 376. 0 G rand Total 137 .7 G rand T otal 2,54 0.0 G ra nd Tota l 8 .8% Figure 23. Comparison by Exchange Source. Capital IQ
  • Page 18 Financing - Last Three Months (US$ m) Month Company Name Country Angel/Seed Debt financi ng Series A Series B Series C Series D Series E Grand Total USA 17.0 17.0 Jan-09 Aster Data Systems USA 13.0 13.0 Yodle USA 12.5 12.5 AdMob France 11.4 11.4 VirtuOz USA 10.0 10.0 IMVU NewsGator USA 10.0 10.0 USA 10.0 10.0 Go Internet Media USA 10.0 10.0 DECA Nurien Korea 10.0 10.0 USA 10.0 10.0 RatePoint USA 9. 0 9.0 One True Media Israel 8.0 8.0 SundaySky USA 8. 0 8.0 Play Hard Sports JibJab USA 7.5 7.5 USA 7. 0 7.0 Xobni USA 6. 5 6.5 Insi deView Kewego France 6.2 6.2 USA 6.0 6.0 Fliqz USA 6.0 6.0 Motionbox USA 6.0 6.0 Social Medi a USA 5. 0 5.0 Sportsblogs AboutUs USA 5.0 5.0 USA 5.0 5.0 Geni USA 5.0 5.0 Gbox E-Global Sports Network USA 3.5 3.5 USA 2.5 2.5 mEgo Tripwolf Austria 2.5 2.5 UK 1.2 1.2 Hubdub USA 1.0 1.0 Snooth CoveritLive Canada 1.0 1.0 USA 0.3 0.3 BackType Canada 0.2 0.2 Identi. ca Meez USA Jan-09 Total 5.0 45.2 73.9 82.2 10.0 216.3 USA 35.0 35.0 Feb-09 Twitter South Africa 20.0 20.0 Synthasite USA 18.0 18.0 Trem or Media Offerpal Media USA 15.0 15.0 UK 13.5 13.5 Imagini USA 12.5 12.5 Emergent Game Technologies Israel 12.0 12.0 Outbrain France 9. 0 9.0 Tvtrip Tongxue China 6.0 6.0 USA 5.6 5.6 Oodle USA 4.3 4.3 TextDigger OneSpot USA 4.2 4.2 Canada 4. 0 4.0 Mixpo USA 4.0 4.0 FetchDog Netherlands 4.0 4.0 Virtual Fairground USA 3.0 3.0 7 Billion People FamilyLink.com USA 2. 9 2.9 USA 2.3 2.3 WhistleBox UK 2.0 2.0 Mendeley Outright USA 2.0 2.0 Israel 1.6 1.6 Tvinci Filtrbox USA 1.4 1.4 Netherlands 1.3 1.3 MMO Life USA 1.3 1.3 Cake Financial fav. or.it UK 0.7 0.7 Feb-09 Total 13.3 24.8 76.4 58.6 12.5 185.5 USA 15.0 15.0 Mar-09 Vidyo Buzznet USA 12.5 12.5 USA 12.0 12.0 LendingClub SendMe Inc. USA 12.0 12.0 USA 10.5 10.5 Auditude USA 10.0 10.0 SuperSecret Greystripe USA 5.5 5.5 USA 5. 0 5.0 OMGPOP USA 4.1 4.1 Apture USA 4.0 4.0 Simulmedia Canada 3.9 3.9 Tynt AnySource Media USA 3.2 3.2 USA 2.0 2.0 Hunch USA 2. 0 2.0 Sports Composi te DE Myngl e Netherlands 1.3 1.3 USA 0. 8 0.8 33Across Mar-09 Total 1.3 1.3 27.2 30.3 33.0 12.0 105.0 Grand Total 19.6 1.3 97.2 180.5 173.8 12.0 22.5 506.8 Figure 24. Financing, Last Three Months Source. Company reports
  • Page 19 Company Des criptions - Current Month Capital Market Activity C ompany HQ Webs ite Des c ription Un ite d S ta te s www. 3 3a cro s s.c om 33A c ros s, named a fte r the 3 3% of interne t us ers at which its ma rk eting is dire cted, propos es to us e socia l networks to ma k e online 33 Ac ros s Inc . a dv ertis ing more eff ec tiv e. In a depa rture from wides prea d direc t res pons e a dv ertising, this c ompany is dev elo pin g te chnology to identify and ta rge t mes s ages to the se mos t influentia l web us ers , in order to us e their s wa y to the c lient’s adva nta ge. N/A www. a dults pa ce.c om A dultS pa ce is a n a dult ta rgeted s ocia l ne twork . Adults pac e Un ite d S ta te s www. a nys ourcemedia . com F oun ded in 2006 , A ny S ou rc e Media is a ra pidly -gro wing, innova tiv e tech nology c ompa ny ena bling c ons umer elec tronics ma nufa ctu re rs ’ to AnyS ource Media brin g a wide range of Inte rnet-deliv ered video directly in to th eir devic es . A ny S o urce Media provide s an Internet-e nabled T V ( iT V ) platform, c alled the Inte rn et V ideo Na viga tor™ ( IV N) to silicon compa nie s a nd cons umer electro nics manu fac turers ’ of HDT V worldwide. T he IV N pla tfo rm inc lu des embe dded s oftware ins ide the H DT V , a fu ll-s pe ctrum o f bo th bra nded a nd us er-gene ra ted v ideo co ntent de livered ov er a dire c t Internet connec tion, a s well as a ta rgeted a dv ertising and us er ma na gement s y s tem managed a t the IV N da ta c en ter. S imila r to a v ide o R S S re ader for telev is io n, the I V N da ta ce nter c ommunica tes with a wide-ra nge of content provide rs to collect the info rmation nec e ss ary to popu la te the frie ndly IV N us er in terfac e on the H D TV s cre en. T he c on tent des cription da ta is enha nc ed a nd n ormalized s o the nav igation experien ce is s imple and co ns is tent. T he nav igation da ta is th en deliv ered to the T V along with a dv ertising, preferen ce s a nd othe r trans ac tion informa tio n. Un ite d S ta te s www. a pture.c om A pture allows publis hers a nd blogge rs to link a nd incorporate s evera l me dia items into a dyna mic la ye r a bov e their pa ge s. P ublis hers hav e to Apture Inc embed a s ingle line of J a va script c ode in to th eir s ite a nd then sign into their A ptu re a cc ount. B y h ighlighting words or ph ra se s Apture a llows publis hers to link , prov iding appropria te c ontent to c hoo s e between. W he n the reade r clic k s a s mall windo w ope ns with related ite ms s elec ted by the publis he r. T he rea der c an view th e content be it te xt, video or ph otos . R eade rs a cces s thes e items without lea ving the origin al page . Un ite d S ta te s www. a uditude .c om A uditude , In c. opera tes as a bus in es s-to -bus ine ss c ompa ny. T he co mpa ny’s produc t is a n ad pla tfo rm for syndica te d media mana gement Auditude , Inc. a nd targe tin g ba se d on automated co ntent identific ation. T he compa ny helps c onte nt o wners , publis hers , and adv ertis ers to chan ge the wa y media is co ns umed online. T he co mpa ny wa s fou nded in 199 9 an d is ba s ed in P a lo Alto, C alifo rn ia . Un ite d S ta te s www. buzz net.com B uzz ne t, In c. ope ra tes a s a so cial ne tworking W ebs ite. T he c ompan y provides a n integra ted media a nd community platf orm that ena bles B uzz net, Inc . us ers to network with ba nds , trends etters , and pee rs through s elf-crea ted content, vide os , ph otos , a nd journa ls . I t als o offers mu sic a nd pop c ulture to pic s . T he c ompa ny wa s f ounded in 2 002 a nd is ba se d in H ollywood, C a lifornia. Un ite d S ta te s www. grey s tripe.com G re ys tripe, Inc. opera tes a n ad-s upported mo bile games and applica tions dis tribution pla tfo rm. Th e c ompan y provides o nline ga ming a nd in- G reys tripe, I nc . game a dv ertis ing s olution s through publis her s ites . Its A dW R AP produ ct s uite en a bles brand a dv ertise rs to communic ate th eir bra nd mes sa ges to mobile a udienc e; publish ers to s erv e ads through the ir ga me s; and c ons umers to downloa d ga mes , as we ll a s de live rs ima ges , v ide os , an d s cro lling ban ners to mobile game s and a pplic atio ns . T he co mpa ny ’s s olutions als o inclu de A dW R A P C a mpa ign Man ager, a n a dv ertis ing W eb in terfac e that allows a dvertis ing age nc ie s a nd a d res elle rs to cre a te a nd mon itor mobile in-ga me ad c ampaign s; AdW R AP C atalog P ro gram, which ena bles partne rs to dis tribu te a mo bile ga me ca ta log; an d A dW R A P for P ublis he rs platform tha t provide s mobile game publis he rs a n au toma te d proces s , whic h ad-e nables mobile games a nd a pplic ations . It s ev ers developers , c arrie rs a nd dis tributors , game pla ye rs , a nd c on sume r W eb s ites . T he c ompany is ba s ed in S a n F rancisc o, C alifo rn ia. Un ite d S ta te s www. hunch.c om N/A Hunc h Un ite d S ta te s iminlik ewithyou. co m I'm in lik e with you provides onlin e interac tion with frie nds . I t fa c ilitate s to c reate a ga me, browse ga mes a nd profiles , find frien ds , a n d dra w I'm i n like with you pic tures . T he compa ny is ba s ed in the U nited S ta tes . Un ite d S ta te s www. lendingclub. co m L en ding C lub C orpora tion dev elops a n d ma rk ets networking solution s for the fina n cia l indus try. T he compa ny ’s s uite e na bles s oc ia l lending L ending C lub C orporation networking se rv ice s. Additiona lly , it provides ris k as s es sment and in ve stmen t a dviso ry s olutions . Lending C lu b ma rk ets its products u nder the L en dingMa tch bra nd na me. T he co mpa ny is he adqua rtered in S unny va le, C a lifornia. Un ite d S ta te s www. miva .c om MIV A , Inc. , along with its su bs idiaries , opera tes a s a n online media and adv ertis ing network c ompa ny prima rily in N orth A me ric a an d E urope . MIV A I nc . It opera tes in two divis ions , M IV A Direc t an d MI V A Me dia . T he MIV A Direc t div ision operate s a po rtfolio of c on su me r des tina tion W eb s ites , a s well as v arious cons ume r-oriente d intera c tive products, including toolba rs , h ome pa ges , a nd downloada ble des k top wa llpa pers and s cree ns a vers. Its A L O T toolba rs pro ducts offer c ons umers dire ct link s to various releva nt a ffinity content, an d prov ide s earch f unctiona lity, utiliz ing s ea rc h res ults a nd a d listings primarily from a th ird-pa rty provider. Its portfolio of co ns umer des tination W eb s ite s inc ludes vertica l c onte nt s ites an d en terta inment-oriente d s ites . T he MIV A Media div ision is a n auction ba s ed pa y-per-click a dv ertising and publishing network. It c onnec ts buye rs an d s elle rs o nline by dis pla yin g releva nt a nd timely text a ds in res pon se to co ns umer se arch or brows ing a ctivity on se le ct Inte rn et properties . MI V A Me dia publish er network inc ludes v a rio us third pa rty a nd M IV A o wned pro perties , inc lu din g, porta ls , v ertic al an d c ate gory spec ific c onte nt W e b s ites , comme rce W eb sites , community W eb sites , se arch engine s, dire ctories , toolbars , a nd des k Ne therla nds www. myn gle. com My ngle B .V . pro vides an onlin e langu a ge e-le a rn ing pla tform. Th e c ompan y brings together la ngu age teac he rs a nd s tu dents ena bling live Myngl e B .V . les so ns or c onv ers a tional prac tic e ov er th e In ternet. My ngle B .V . wa s founded in 2 007 and is ba se d in A ms te rda m, T he Nethe rla nds. Un ite d S ta te s www. s en dme mobile.c om S endM e, I nc. , a mo bile media co mpa ny, prov ides dire ct to co ns ume r mo bile e nterta inment s ervic es in the U nited S ta tes . I t provides S endMe , Inc . intera ctive mo bile trivia, ringtone s, wallpa per, a nd mobile s weeps ta ke s. T he compa ny als o prov ide s horos copes , jok es , gos s ips , roman ce tips , s ports trivia , pic k -up lin es , diet tips, da ily ins pira tio ns , a n d fan c lubs. S endM e, I nc . was founde d in 20 06 a nd is ba s ed in S a n F ra nc isco, C alifornia . Un ite d S ta te s http://www. s imulmedia .co m/ S imulmedia is a New Y ork C ity-ba se d media mark eting c ompan y dedica ted to improving the effe ctivene ss of progra m promotion on S imulme dia, Inc . televis ion. T he c ompa ny is pione ering the development of pre dictive te chnology to help te levision compa nies deliv er th e right o n-air promotions to th e right v ie wers a t the right time. Un ite d S ta te s www. roto hog. co m S ports C ompo site DE , Inc ., doing bus ine ss a s R otoH og, operates a s a f anta sy s ports ga me on the W eb. T he compa ny’s s ervices in clude S ports C ompos i te DE Inc. a th le te price upda tes ; ba s eba ll s co re s, s tats , a nd c ha ts ; ma rk et an a lys is ; a nd co mpe titive ros te r v iews . S ports C ompo site DE , Inc. wa s fou nded in 200 6 a nd is ba s ed in Inglewoo d, C a lifornia . Un ite d S ta te s www. s upers e cret. co m S uperS ec re t is a s upe r-fu n, s ecret world full of adventures a nd s urpris es . C h oos e a c harac ter a nd do all you r fa vorite s tuff : c ha t with frie nds , S uperS ecr et, Inc . pla y ga mes a ll da y, e xplore s ecret plac es , get clues , and sh op f or ta s ty treats and excelle nt c lothe s. T he more you pla y, the older y our c ha ra cter gets , until you're a teena ger with a pet, an a partment, an d a cc es s to rea lly co ol hangouts . Tha t mea ns lo ts of S uperS ecret birthday s —fa r more than just the us ua l one a yea r. E very time you v is it, the re 'll be frie nds wa iting to pla y and new things to be dis c ov ered. Y ou c a n ev en play pra n ks o n pe ople, if y ou 're tha t s ort of pers on. An d we think ma ybe you a re . S uperS ec ret. L ik e life. B ut way mo re fun. C a nada www. ty nt.co m T yn t Mu ltimedia In c. dev elops hos ted s olutions for online pu blis hers , s oc ia l network s , a n d on line communities to inc reas e us er enga gement. T ynt Multime dia Inc . It offe rs T ra cer, a technolo gy tha t rec ords the us er ac tion a nd a utomatic ally adds a link bac k to the origina l c onte nt wh en it is pas ted when a us er highlights o r copie s text or images from W eb s ite s. T he c o mpa ny was fou nded in 200 7 a n d is ba s ed in C alga ry, C a na da. Un ite d S ta te s www. vidyo. co m V idyo, Inc . pro vides dis ruptive video technolo gy for traditiona l video co mmunic ations . I t des igns s oftware de velopmen t to olk it tha t a llows its V idyo, Inc. tec hn ology to be e a s ily inte gra ted into s oft s witch or gatewa y, v ide o ne twork ing a nd c onfe re ncing s ys tems , pers onal c ommunic a tion devices , pres enc e bas ed IM produc ts or s ervices , W eb conferencing pro ducts or s ervic es , a u dio a n d v ide o c onferencin g s ervic es , a n d ba ck bo ne a nd V OI P n etwork s . T he company was fo rmerly k no wn as L a ye re d Me dia , In c. a nd cha nge d its name to V idyo, Inc . in Octo ber 20 07. The c ompany was founded in 2 005 a nd is he adqu a rtered in H ac ke ns a ck , New J ers ey . Figure 25. Company Descriptions Source. Company reports, Capital IQ, Crunchbase
  • Page 20 RELEVANT DISCLOSURES APPLICABLE TO: NONE LIST OF DISCLOSURE TERMS: None applicable. 1. ANALYST CERTIFICATION Each analyst of Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report. I n f o r ma t i o n a b o u t Re s e a r ch C a p i t a l C o r p o r a t i o n ’ s Ra t i n g S y s t e m, t h e d i s t r i b u t i o n o f o u r r e s e a r ch t o cl i e n t s a n d t h e p e r ce n t a g e o f r e c o m me n d a t i o n s wh i c h a r e i n e a c h o f o u r r a t i n g c a t e g o r i e s i s a v a i l a b l e o n o u r we b si t e a t ww w. r e s e a r ch c a p i t a l . c o m. T h e i n f o r ma t i o n c o n t a i n e d i n t h i s r e p o r t h a s b e e n d r a wn f r o m s o u r c e s b e l i e ve d t o b e r e l i a b l e b u t i t s a c cu r a c y o r co mp l e t e n e ss i s n o t g u a r a n t e e d , n o r i n p r o vi d i n g i t d o e s R e s e a r c h Ca p i t a l C o r p o r a t i o n a s s u me a n y r e sp o n si b i l i t y o r l i a b i l i t y . R e s e a r ch C a p i t a l C o r p o r a t i o n , i t s d i r e ct o r s , o f f i c e r s a n d o t h e r e mp l o y e e s ma y , f r o m t i me t o t i me , h a v e p o si t i o n s i n t h e s e cu r i t i e s me n t i o n e d h e r e i n . Co n t e n t s o f t h i s r e p o r t c a n n o t b e r e p r o d u c e d i n wh o l e o r i n p a r t wi t h o u t t h e e xp r e ss e d p e r mi s si o n o f R e se a r ch C a p i t a l C o r p o r a t i o n . ( U . S . I n s t i t u t i o n a l Cl i e n t s — Re s e a r ch C a p i t a l U . S. A . I n c. ( a wh o l l y o wn e d s u b si d i a r y o f R e s e a r c h C a p i t a l Co r p o r a t i o n ) a cc e p t s r e s p o n si b i l i t y f o r t h e c o n t e n t s o f t h i s r e p o r t s u b je c t t o t h e t e r ms & l i mi t a t i o n s s e t o u t a b o v e . F i r ms o r i n s t i t u t i o n s r e ce i vi n g t h i s r e p o r t s h o u l d e f f e ct t r a n s a ct i o n s i n s e c u r i t i e s d i sc u s se d i n t h e r e p o r t t h r o u g h R e s e a r ch C a p i t a l U . S . A . I n c. , a B r o k e r - D e a l e r R e g i s t e r e d wi t h t h e U n i t e d S t a t e s S e cu r i t i e s a n d E xc h a n g e C o m mi s si o n ) . Tor on to 4 16. 8 60. 76 00 M ontr eal 51 4. 39 9. 150 0 V anco u ver 60 4. 66 2. 180 0 C al gar y 40 3. 26 5. 740 0 R egi na 306. 566. 7550 www.researchcapital.com