09-04-14 Web 2.0 Weekly
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09-04-14 Web 2.0 Weekly

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Web 2.0 financing activity picked up in the 2nd week of April after a slow ...

Web 2.0 financing activity picked up in the 2nd week of April after a slow
start. Price performance for the group was also strong over the past week.

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  • 1. SOFTWARE & SERVICES 14 APRIL 2009 DAVID SHORE, CFA, MBA 416.860.6784 WEB 2.O WEEKLY david.shore@researchcapital.com Arun Thomas (Associate) 416.860.7666 COLLECTIVE MEDIA LEADS PICK-UP IN FINANCING ACT I VIT Y P E RK S U P I N S E CO ND WE E K OF A P RIL Month-to-date, April finished with nine financings totalling $66.3 million, a run-rate that could potentially make it a better month for capital market activity than March. A total of three deals greater than $10 million each helped the overall statistics. Although April activity has picked up from a total dollars raised perspective, the number of transactions month-to-date (nine) is well below numbers for March (21) and February (25). Financing Activity Last Three Months 200.0 8.0 180.0 7.0 160.0 6.0 140.0 5.0 120.0 (US$m) (US$m) 100.0 4.0 80.0 3.0 60.0 2.0 40.0 1.0 20.0 0.0 0.0 Feb-09 Mar-09 Apr-09 Total Average Capital Market Activity: The second week of April saw seven companies raising money, with Collective Media raising $20 million (behind Twitter which raised $35 million in February). The month-to-date total of total capital raised stands at $66 million. The Rubicon Project (ad network sector) and Cellufun (gaming sector) followed Collective Media, raising $13 million and $10 million, respectively. Price Performance: Gaming company Hanbitsoft Inc. (A047080-KOSE) was the top price performer for the week, returning 45.6%, closely followed by NEOW IZ Games Corp. (A095660-KOSE). Sitesearch Corp. (STPC-OTCBB) returned the least at -30.0%. Of the 48 companies (with stock price greater than $1), sixteen companies on our list had price performance greater than 10%. Eight companies returned more than 20%. 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
  • 2. Page 2 THE WEB 2.0 UNIVERSE Ninety-tw o public Web 2.0 companies identified: Our W eb 2.0 universe contains 92 companies, with a combined market cap of $40 billion (Figure 1). The average market cap for the group is ~$437 million (but a median of only $46 million), with average trailing revenue of $144 million (median $52 million). The companies are also generally profitable, with a median EBITDA margin of 17.6%. On a valuation basis, the overall average is 4.7x trailing revenue (median 1.3x) and 8.9x trailing EBITDA (median 6.7x). Twelve of the companies have more than 500 employees. C omparable C o mpany A nalys is > W eb 2.0 Trading Current U S D Market U S D LT M To tal US D L TM T otal E BITDA TE V/LT M T E V/LT M C om pany Nam e L TM as o f T ic ker E xc h ange Currenc y H Q P ric e C ap ($m) R ev ($m) E B ITDA ($m) % R evenue E B IT DA E mployees Acce le rize N ew Me dia, Inc. 1 2/31 /200 8 AC LZ OT C B B US D U nited S ta tes 0 .38 1 0.4 3.8 (4 .8) NM 3.9 x - 11 Actoz S of t C o., L td. 1 2/31 /200 8 A0 527 90 K OS E KR W S outh K orea 14 800 .00 9 4.7 70. 2 1 4.0 20 .0% 1.0 x 4.8x NA AQ Inte ractive , Inc. 1 2/31 /200 8 38 38 TSE JPY J apan 43 200 .00 2 3.4 60. 1 4 .8 8 .0% - - NA As s ocia ted Media H oldings Inc. 6 /30 /200 7 AS MH OT C P K US D U nited S ta tes 0 .00 0 .1 0.1 (2 .3) NM 8.4 x - 3 B igstring Corp. 1 2/31 /200 8 BS GC OT C B B US D U nited S ta tes 0 .01 0 .7 0.1 (2 .1) NM 23.6 x - 4 B e tawave Co rpora tion 1 2/31 /200 8 B W AV OT C B B US D U nited S ta tes 0 .13 3 .8 7.7 (1 1. 8) NM - - 45 B e yond Commerce, Inc. 1 2/31 /200 8 B Y OC OT C B B US D U nited S ta tes 1 .28 5 2.9 1.8 (8 .6) NM 30.8 x - NA B right T hings plc 9 /30 /200 8 AIM:B G T AIM GBP U nited K ingdom 0 .01 4 .3 0.2 (1 .7) NM 17.2 x - 3 ,12 5 B roa dW ebAs ia Inc. 9 /30 /200 8 BW BA OT C P K US D U nited S ta tes 0 .45 3 8.2 0.0 (4 .6) NM - - 37 C D C C orp. 9 /30 /200 8 C HIN .A N as da qG S US D H ong K ong 1 .26 13 5.9 428 .1 1 8.8 4 .4% 0.4 x 1 0.2 x NA C hina G ate wa y C orpora tion 9 /30 /200 8 C GW Y OT C B B US D U nited S ta tes 0 .00 0 .0 6.7 (6 .6) -9 8.9% 7.0 x - NA C hine s e G amer International 1 2/31 /200 8 G T S M:308 3 GTSM TWD T aiwan 190 . 00 47 9.6 46. 3 2 3.4 50 .5% 1.1 x 1 3.2 x NA C ornerW orld C orporation 1 /31 /200 9 C WR L OT C B B US D U nited S ta tes 0 .12 7 .7 1.3 NM NM 0.6 x 3.8x 574 C yberplex Inc. 1 2/31 /200 8 T S X:C X TSX C AD C ana da 1 .22 5 3.5 46. 8 3 .9 8 .4% 0.5 x 3.8x NA D AD A S pA 9 /30 /200 8 C M:D A CM EUR Ita ly 4 .29 9 2.6 226 .0 3 6.1 16 .0% - - NA D XN Holdings B hd 1 1/30 /200 8 D XN KL SE MY R Ma la ys ia 0 .30 1 8.9 76. 5 1 0.2 13 .3% 5.0 x - 11 D ibz Inte rnational, Inc. NA D IB Z OT C P K US D U nited S ta tes 0 .00 0 .0 NA NM NM - - 3 D igitalP ost Inte ra ctive , Inc. 9 /30 /200 8 D G LP OT C B B US D U nited S ta tes 0 .02 1 .1 0.4 (3 .3) NM - - 6 D igitalT own, Inc. 1 1/30 /200 8 DGT W OT C B B US D U nited S ta tes 2 .50 6 7.9 NM (2 .5) NM 1.3 x - NA D olphin D igital Me dia, Inc. NA DPDM OT C B B US D U nited S ta tes 0 .57 2 7.7 NA NM NM - - 2 E olith C o. L td. 1 2/31 /200 7 A0 410 60 K OS E KR W S outh K orea 700 . 00 2 4.6 18. 8 (0 .1) -0 .3% - - 22 E xte ns ions , Inc. 9 /30 /200 8 E XT I OT C P K US D U nited S ta tes 0 .15 1 4.2 NM NM NM - - 29 F inancia l Med ia G roup, Inc. 1 1/30 /200 8 F NG P OT C B B US D U nited S ta tes 0 .01 0 .5 6.8 1 .2 18 .3% 4.4 x - NA 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 .33 1 4.2 4.2 (8 .6) NM 1.2 x 8.4x NA F rogs te r Inter active P icture s AG 6 /30 /200 8 F RG XT R A EUR G ermany 7 .72 2 4.2 5.4 (3 .2) -6 0.6% 0.5 x 1.8x NA G a ma nia D igital E ntertainment C o., L td. 1 2/31 /200 8 61 80 GTSM TWD T aiwan 34 .40 15 5.1 111 .9 1 6.2 14 .5% 4.8 x - NA G a me On C o L td. 1 2/31 /200 8 38 12 TSE JPY J apan 93 000 .00 8 9.6 74. 4 1 9.2 25 .9% - - NA G e oS e ntric O yj 1 2/31 /200 8 G E O1 V H LS E EUR F inland 0 .03 3 5.8 5.8 (1 3. 1) NM 1.4 x 5.6x NA G iant Intera ctive G roup, Inc. 1 2/31 /200 8 GA NYS E US D C hina 7 .57 1,7 10.8 233 .3 14 4.4 61 .9% - - 636 G iga Media Ltd. 1 2/31 /200 8 G IG M N as da qG S US D T aiwan 6 .18 33 3.6 190 .4 4 6.0 24 .2% 41.2 x - NA G ravity C o., L td 9 /30 /200 8 GR VY N as da qG M US D S outh K orea 0 .94 2 6.1 36. 8 7 .1 19 .2% 1.1 x 6.3x NA G ree, Inc. 6 /30 /200 8 T S E : 363 2 TSE JPY J apan 5 700 .00 1,2 67.3 29. 3 1 0.5 36 .0% 1.3 x - NA G ungH o O nline E ntertainment, Inc. 1 2/31 /200 8 37 65 OS E JPY J apan 127 500 . 00 14 5.6 112 .1 2 0.0 17 .8% 0.4 x 9.1x 3 ,20 0 H anbitS of t, Inc. 1 2/31 /200 8 A0 470 80 K OS E KR W S outh K orea 5 030 .00 8 2.9 52. 3 (1 4. 7) -2 8.2% - - NA IAC /InterActiveC orp. 1 2/31 /200 8 IAC I N as da qG S US D U nited S ta tes 16 .60 2,3 39.7 1 ,44 5.1 6 4.6 4 .5% - - NA IAS E nergy, Inc. 1 /31 /200 9 IAS C.A OT C B B US D C ana da 0 .07 4 .9 0.0 (0 .8) NM 2.5 x - NA IdeaE dge, Inc. 1 2/31 /200 8 OT C B B :ID AE OT C B B US D U nited S ta tes 0 .39 1 6.6 0.0 (4 .6) NM 1.0 x 2.6x 72 is ee media Inc. 1 2/31 /200 8 IE E T S XV C AD C ana da 0 .11 4 .6 1.2 (4 .9) NM 2.9 x - NA J umbuck E ntertainment P ty Ltd. 1 2/31 /200 8 AS X:J MB AS X AU D Aus tra lia 0 .48 1 7.3 13. 0 4 .9 37 .2% 1.1 x 1 1.1 x NA J umpT V Inc. 1 2/31 /200 8 T S X:J T V TSX C AD C ana da 0 .58 5 4.0 13. 4 (8 .4) -6 2.6% 3.0 x 7.9x 2 ,27 1 K a boos e Inc. 1 2/31 /200 8 T S X:K AB TSX C AD C ana da 0 .58 6 6.4 67. 0 6 .7 9 .9% 2.7 x - NA K ings oft Co. Ltd. 1 2/31 /200 8 38 88 S E HK HKD C hina 3 .24 44 8.9 120 .1 4 6.3 38 .5% 0.1 x - NA Lingo Media Corporation 9 /30 /200 8 T S XV : LM T S XV C AD C ana da 0 .80 8 .4 3.3 (1 .4) -4 2.5% - - 90 Live World Inc. 1 2/31 /200 8 LV WD OT C P K US D U nited S ta tes 0 .08 2 .5 11. 8 (0 .5) -4 .3% - - 13 LookS mart, Ltd. 1 2/31 /200 8 LOOK N as da qG M US D U nited S ta tes 1 .19 2 0.3 65. 0 (2 .0) -3 .1% 4.2 x 1 0.9 x NA Magnitude Information S ys tems Inc. 9 /30 /200 8 MA G Y OT C B B US D U nited S ta tes 0 .01 4 .4 0.1 (3 .2) NM 1.1 x 6.7x NA Mixi, Inc. 1 2/31 /200 8 21 21 TSE JPY J apan 385 000 . 00 58 9.1 116 .9 4 4.5 38 .0% - - 3 Mode rn Times G roup Mtg AB 1 2/31 /200 8 MT G B OM S EK S weden 155 . 50 1,2 51.5 1 ,60 8.2 25 9.4 16 .1% 4.3 x - NA Moggle , Inc 1 2/31 /200 8 MMOG OT C B B US D U nited S ta tes 2 .30 8 3.5 NM (1 .1) NM 3.7 x 1 3.6 x NA MOK O.mobi L imited 1 2/31 /200 8 MK B AS X AU D Aus tra lia 0 .09 5 .5 1.1 (2 .2) NM 1.6 x 3.4x NA N E OW IZ G ames C orpora tion 1 2/31 /200 7 A0 956 60 K OS E KR W S outh K orea 70 000 .00 50 6.3 135 .6 3 6.4 26 .9% - - NA N etD ragon W ebS oft, Inc. 1 2/31 /200 8 77 7 S E HK HKD C hina 4 .16 28 3.7 87. 2 3 9.9 45 .7% - - 19 N ete as e.com I nc. 1 2/31 /200 8 NT E S N as da qG S US D C hina 29 .37 3,6 14.0 451 .2 29 3.4 65 .0% - - NA N eXplore Co rpora tion 9 /30 /200 7 N XP C OT C P K US D U nited S ta tes 0 .90 5 0.2 NM (4 .9) NM 0.2 x 1.3x 286 N gi G roup Inc. 1 2/31 /200 8 24 97 TSE JPY J apan 27 400 .00 3 3.7 98. 0 3 0.2 30 .8% 2.5 x 1 0.0 x 3 ,40 0 N orthgate Te chnologies L imited 1 2/31 /200 8 59 005 7 BS E INR India 43 .25 3 0.3 135 .4 2 3.8 17 .6% 0.1 x - 627 Open T e xt Co rp. 1 2/31 /200 8 OT E X N as da qG S US D C ana da 35 .11 1,8 22.2 769 .3 19 5.0 25 .3% - - NA Openwave S ys tems Inc. 1 2/31 /200 8 OP W V N as da qG S US D U nited S ta tes 1 .34 11 1.6 199 .6 (1 0. 2) -5 .1% 2.9 x - NA P e rf ect W orld C o., Ltd. 1 2/31 /200 8 PW R D N as da qG S US D C hina 16 .99 89 6.3 210 .2 11 3.8 54 .1% - - 74 P hotoChannel N etwork s Inc. 1 2/31 /200 8 T S XV : P N T S XV C AD C ana da 1 .70 4 7.6 16. 3 (0 .8) -4 .9% 0.0 x 0.1x NA Quepa s a C or p. 1 2/31 /200 8 QP S A N as da qC M US D U nited S ta tes 0 .92 1 1.7 0.1 (1 1. 4) NM 0.2 x 0.5x NA OA O R B C Information S ys tems 1 2/31 /200 7 R BC I R TS US D R us s ia 0 .53 7 2.8 141 .9 1 8.5 13 .1% 0.9 x 6.4x 514 S handa Inter active E ntertainme nt L td. 1 2/31 /200 8 S NDA N as da qG S US D C hina 52 .18 3,6 20.4 522 .1 23 9.9 46 .0% 2.0 x 2 1.5 x NA S hutte rf ly, Inc. 1 2/31 /200 8 S F LY N as da qG S US D U nited S ta tes 10 .75 27 0.5 213 .5 2 8.4 13 .3% 2.0 x 6.4x 11 S K C ommun ications Co., Ltd. 1 2/31 /200 7 A0 662 70 K OS E KR W S outh K orea 10 200 .00 31 5.4 155 .9 1 4.7 9 .4% - - 33 S N AP Inte ra ctive , Inc. 1 2/31 /200 8 S T VI OT C B B US D U nited S ta tes 0 .70 7 .6 3.0 0 .9 31 .4% 0.1 x - NA S N M G lobal H oldings 9 /30 /200 8 S N MN OT C P K US D U nited S ta tes 0 .00 0 .0 2.0 (0 .7) -3 4.8% 3.7 x 8.8x 3 ,19 7 S ocia l Media V e nures , Inc. 1 2/31 /200 8 S MV I OT C P K US D U nited S ta tes 0 .88 0 .0 0.1 (0 .1) -6 0.5% - - 15 S ohu. com Inc. 1 2/31 /200 8 S OH U N as da qG S US D C hina 50 .00 1,9 05.8 429 .1 18 0.5 42 .1% 0.8 x 3.8x 183 S ite s earch C orporation 1 /31 /200 9 S T PC OT C B B US D U nited S ta tes 3 .50 2 8.2 NM (1 .1) NM - - 7 S park N etworks , Inc. 1 2/31 /200 8 LOV AME X US D U nited S ta tes 2 .25 4 6.2 57. 3 1 2.3 21 .5% 14.9 x 3 0.4 x 6 ,19 4 S pectrumDN A, Inc. 1 2/31 /200 8 S P XA OT C B B US D U nited S ta tes 0 .15 7 .3 0.1 (2 .5) NM 0.2 x - 347 T encent Hold ings L td. 1 2/31 /200 8 70 0 S E HK HKD C hina 61 .80 14,3 60. 1 1 ,04 6.6 51 1.9 48 .9% - - NA T he P arent C ompany 8/2/2008 K ID S .Q OT C P K US D U nited S ta tes 0 .02 0 .4 112 .0 (1 3. 5) -1 2.0% - - 310 T he 9 L imited 1 2/31 /200 8 N CT Y N as da qG S US D C hina 13 .25 35 5.3 249 .9 8 4.2 33 .7% 4.6 x - 16 T he S treet.com, Inc. 1 2/31 /200 8 TSCM N as da qG M US D U nited S ta tes 2 .12 6 4.7 71. 9 7 .0 9 .7% 0.3 x - 700 T otal S port O nline A S 3 /31 /200 6 T OS O OT C NO NOK N orwa y 0 .04 0 .2 2.0 (1 .0) -5 0.6% 0.1 x 2 9.5 x NA T ree.C om, In c. 1 2/31 /200 8 TR EE N as da qG M US D U nited S ta tes 5 .50 5 4.9 228 .6 (2 3. 9) -1 0.4% 1.1 x 4.9x 1 ,46 9 U nis erve C ommunications Corp. 1 1/30 /200 8 T S XV : US S T S XV C AD C ana da 0 .04 0 .8 24. 4 0 .1 0 .4% 15.4 x - NA U nited Online Inc. 1 2/31 /200 8 U NT D N as da qG S US D U nited S ta tes 5 .36 44 0.3 669 .4 15 3.9 23 .0% 1.2 x 6.6x 1 ,18 9 U OMO Media , Inc 1 /31 /200 9 U OMO OT C B B US D C ana da 0 .11 9 .4 0.6 (0 .5) -7 8.2% - - 4 V a lueC lick Inc. 1 2/31 /200 8 V C LK N as da qG S US D U nited S ta tes 10 .11 87 7.1 625 .8 11 3.6 18 .2% - - NA V O IS , Inc. 1 2/31 /200 8 V OIS OT C B B US D U nited S ta tes 0 .30 2 .5 0.0 (1 .3) NM 5.4 x - 110 W ebze n Inc. 1 2/31 /200 8 W ZE N N as da qG M US D S outh K orea 2 .89 3 4.3 21. 4 (4 .2) -1 9.8% - - 14 W izza rd S of twa re Corpora tion 1 2/31 /200 8 W ZE AME X US D U nited S ta tes 0 .69 3 2.5 6.1 (6 .0) -9 8.2% - - 1 W oozyF ly, Inc. 9 /30 /200 8 W ZY F OT C B B US D U nited S ta tes 0 .15 2 .6 0.0 NM NM - - NA W orlds .com Inc. 9 /30 /200 8 W DD D OT C B B US D U nited S ta tes 0 .17 8 .9 0.1 NM NM 2.9 x 9.1x 174 W ynds torm C orporation NA W YND OT C B B US D U nited S ta tes 0 .17 3 .1 NA NM NM 2.2 x 9.9x NA XIN G AG 1 2/31 /200 8 O1B C XT R A EUR G ermany 28 .28 19 3.0 46. 5 1 4.9 32 .0% 0.7 x - NA Y e dangOnline Corp. 1 2/31 /200 7 A0 527 70 K OS E KR W S outh K orea 9 810 .00 11 5.4 51. 6 1 1.5 22 .4% 0.6 x - NA Y nk K orea Inc. 1 2/31 /200 7 A0 237 70 K OS E KR W S outh K orea 5 500 .00 1 0.1 14. 7 (1 .1) -7 .6% - - - ZipLocal Inc. 1 2/31 /200 8 T S XV : ZIP T S XV C AD C ana da 0 .01 0 .3 2.7 (2 .8) NM 41.2 x 3 0.4 x 2 0,22 2 H igh 14,3 60. 1 1 ,608 .2 51 1. 9 65 .0% 41.2 x 3 0.4 x 20 ,22 2 Low 0 .0 0.0 -23.9 -9 8.9% - - 0 A vera ge 437.0 144.4 32.0 6.9% 4 .7x 8.9x 1,071 Median 4 6.2 51. 9 1 .2 17 .6% 1.3 x 6.7x 142
  • 3. Page 3 Figure 1. Web 2.0 Universe Summary Source. Capital IQ
  • 4. Page 4 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 ) April run-rate building up: The first two weeks of April has had nine financings, with the month-to-date total capital raise of $66.3 million. The month of April (so far) has registered three deals greater than or equal to $10 million and one deal greater than $15 million. The month of March registered 22 financings (total $130.7 million, average $5.9 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 $15 million in January. Financing Activity Last Three Months 200.0 8.0 180.0 7.0 160.0 6.0 140.0 5.0 120.0 (US$m) (US$m) 100.0 4.0 80.0 3.0 60.0 2.0 40.0 1.0 20.0 0.0 0.0 Feb-09 Mar-09 Apr-09 Total Average Figure 2. Financings, Last Three Months Source. Company reports Collective Media largest deal in April: Two weeks into April and Collective Media tops the list with a $20 million raise, followed by The Rubicon Project and Cellufun with $13 million and $10 million, respectively (Figure 3). For additional details, see Figures 23 and 24 (at end of note).
  • 5. (US$m) 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 Twitter Collective Media Synthasite Source. Company reports Tremor Media Vidyo Offerpal Media Imagini The Rubicon Project Buzznet Emergent Game Outbrain LendingClub Figure 3. Capital Market Activity, Last Three Months SendMe Inc. Miva Auditude companies raising $54.4 million. Cellufun Glam Media Visible Measures SuperSecret Tvtrip GoViral ScanScout Tongxue Oodle Greystripe Wamba DoubleTwist OMGPOP Socialtext TextDigger OneSpot Apture Simulmedia Mixpo FetchDog Virtual Fairground Tynt AnySource Media Pixazza TubeMogul Financing Summary - Last Three Months 7 Billion People FamilyLink.com WhistleBox Hunch Outright Mendeley Sports Composite DE Bit.ly Tvinci Socialcast Filtrbox Scan & Target MMO Life AdultSpace Myngle Cake Financial 33Across fav.or.it Three Melons Apr-09 Mar-09 Feb-09 Page 5 eight companies raising over $63.4 million (Figure 4). Social networking companies have the next highest totals, with 11 Video continues to be the most active sector: Activity over the last three months was busiest in the video sector, with
  • 6. Page 6 Capital Market Activity by Sector - Last Three Months 70.0 60.0 50.0 40.0 (US$m) 63.4 30.0 54.4 20.0 41.9 41.4 37.0 30.6 22.5 10.0 20.0 16.0 15.0 12.0 12.0 9.0 5.5 4.3 4.1 4.0 3.9 3.1 2.0 2.0 1.4 1.3 1.3 0.0 Comment/Reputation Gaming Visual Commerce Wiki Travel Microblog Media Mobile Publishing Online Learning Financial Services Lending Mobile Ad Search Infrastructure Social Networks Virtual Goods SAS Video Aggregation Virtual World Crowdsourced Ad Network Analytics Content # companies 8 11 5 7 2 4 4 1 3 1 1 1 1 1 1 1 1 1 1 1 1 1 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 higher than the NASDAQ index (Figure 5). Web 2.0 Index Price Performance 140 120 100 80 60 40 20 0 4/14/2008 4/28/2008 5/12/2008 5/26/2008 6/9/2008 6/23/2008 7/7/2008 7/21/2008 8/4/2008 8/18/2008 9/1/2008 9/15/2008 9/29/2008 10/13/2008 10/27/2008 11/10/2008 11/24/2008 12/8/2008 12/22/2008 1/5/2009 1/19/2009 2/2/2009 2/16/2009 3/2/2009 3/16/2009 3/30/2009 4/13/2009 ^COMP - Share Pricing Index: Web 2.0 X (Market Cap)
  • 7. Page 7 Figure 5. Web 2.0 Price Performance Source. Capital IQ A positive week: 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 34 companies showing positive returns on the week. HanbitSoft Inc. (A047080-KOSE) led the group with a 45.6% return over the past week. Sitesearch Corporation (STPC-OTCBB) had the worst return, dropping 30.0% in the week. 1 Week P rice P erformance HanbitS of t, Inc. 45. 6% NEOWIZ Games Corporation 42.6% Cy berplex Inc. 35.6% Webz en Inc. 28. 4% Eolith Co. Ltd. 26. 1% S handa Interactive Entertainment Ltd. 22. 2% Y nk K orea Inc. 20.6% Ngi Group Inc. 20.1% A ctoz S of t Co., Ltd. 15. 6% Moggle, Inc 15.0% Y edangOnline Corp. 13. 9% S K Communications Co., Ltd. 10.9% CDC Corp. 10. 5% G igaMedia Ltd. 10. 5% Frogs ter Interactive Pictures A G 10.3% S hutterf ly , Inc. 10.3% V alueClick Inc. 9. 9% Northgate Technologies Limited 8. 8% S ohu. com Inc. 8. 2% Openw ave S y s tems Inc. 8. 1% Chines e Gamer International 8. 0% Tree. Com, Inc. 7. 4% TheS treet.com, Inc. 6. 5% PhotoChannel Netw orks Inc. 6. 2% United Online Inc. 5. 7% Perfect World Co., Ltd. 5.2% G ree, Inc. 5.2% Open Tex t Corp. 4.4% Giant Interactive G roup, Inc. 4.3% IA C/InterA ctiveCorp. 2.9% Neteas e. com Inc. 2.7% Tencent Holdings Ltd. 2. 5% GameOn Co Ltd. 2. 3% Gamania Digital Entertainment Co., Ltd. 1.8% S park Netw orks , Inc. 0. 0% A Q Interactive, Inc. 0. 0% B ey ond Commerce, Inc. -0.8% XING A G -0.8% LookS mart, Ltd. -0.8% Modern Times Group Mtg A B -1.0% K ings of t Co. Ltd. -1.5% Mix i, Inc. -1.5% GungHo Online Entertainment, Inc. -1.5% NetDragon WebS of t, Inc. -3.3% The9 Limited -6.4% DA DA S pA -8. 7% DigitalTow n, Inc. -16. 7% S ites earch Corporation -30. 0% -40. 0% -30.0% -20.0% -10. 0% 0.0% 10. 0% 20.0% 30.0% 40. 0% 50. 0% Figure 6. 1-Week Price Performance Source. Capital IQ
  • 8. Page 8 INDUSTRY NEWS (PARTNERSHIPS, FINANCIAL RESULTS, NEW PRODUCTS) K ey Developments C ompany Headline Notes A T&T , Inc . (NYS E : T); Open Text Corp. O pen T ext C orp. (N asdaqG S : O T E X ) a cquired V izible O pen T ext C orp. (Na s daqG S : O T E X ) ac quired V izible Corporation from AT & T , Inc. (NY S E : T) a nd other sha reholders on April 8, 2009. O pen (Nas daqG S : OT E X); Viz ible C orporation Corpora tion from AT &T , Inc . (N Y S E : T) and other T ext will a dd the V i zible tea m to the company 's Digital M edia G roup. V izible emp loyees will remain in the T oronto area a t O pen T ext's sha reholders . R ic hmond H ill, O nta rio offic e. O pen T ext C orp. (Na s daqG S : O T E X ) completed the a cquisition of V izible Corporation from AT & T , Inc. (N Y S E : T ) a nd other sha reholders on April 8, 2009. B eyond Commerc e, Inc . B eyond Commerce I nc. Appoi nts R ona ld L . Loveles s to B eyond Commerce Inc . a nnounc ed the appointment of R onald L . L oveles s, who owns and manages I ntegrity M a rketing and Cons ulting in (OT CB B: B Y OC) the B oa rd of Direc tors R ogers , AR . , to the B oard of D irectors . He is a retired exec utive of W al-M art S tores Inc. H e s erved four years in the U S A ir F orce Intelligenc e S ervice and bega n his ca reer with W al-M a rt in 1964. G igaMedia L td. (Nas daqG S : G IG M) G igaMedia L td. to L aunch W a rhammer O nline Clos ed G igaMedia L td. ann ounced that it will be la unching W a rhammer O nli ne: Age of R ec koning clos ed beta in T a iwa n. T he ga me wa s originally B eta in Ta iwan launched in N orth Americ a, E urope, a nd A ustra lia in S eptember 2008 a nd R uss ia in F ebrua ry 2009. J u mpTV Inc . (TS X : J TV) University of N ebrask a A thletics Teams Up with J umpTV J umpTV I nc. and U nivers ity of N ebra s ka a nnounced the debut of a grand sla m n ew video service dedicated to Nebras ka H usk ers ba s eba ll. Inc . for E x clus ive Live O nline V ideo S ervic e B eginning immediately this online s ervic e will a ir all home baseball ga mes free to fa ns through the res t of this s ea son. T he onl ine des tination showca s es a sleek look and feel and delive rs the most c omplete a nd comprehensiv e v ideo covera ge of N ebra sk a baseball. H us kers .com is the single des tina tion for Nebras ka baseba l l fans to wa tc h live games with a ll the bes t content a nd features in one centra l l ocation. T he University of Nebras k a is the firs t J umpT V C ollegiate P artner to use NeuL ion technology . Nebra s ka, in conjunction with N euL ion, will offer exc lusiv e free live video strea ms of a ll home ba seba ll ga mes through H usk erV isi on, the athletic depa rtment's televis ion production group. J u mpTV Inc . (TS X : J TV) Indy C ar S eries and JumpT V I nc. Announces New J umpTV I nc. annou nced the launc h of a new online video portal dedicated to the Indy Ca r S eries . T he Indy ca r.c om Media C enter gives auto P a rtners hip racing fa ns a cros s the globe a n opportunity to tune into their favorite multimedi a c ontent and on-demand programs online. P owered by lea ding s ports tec hnology compa ny N euLion, the I ndyc ar.com M edia C enter is an a ll-in-one online media s olution for both the Indy Ca r S eries a nd F irestone Indy L ights. T his is the firs t and only dedicated onli ne network that gives Indy Car S eries fans worldwide one central l ocation to a cc ess all things entertainment. The Media C enter u ses the la tes t NeuL ion technology a nd serv ice to deliver popula r Up to S peed segments, race highlights , vinta ge races , 2008 a rchiv es , podca s ting and all other v ideo ass ets . T he M edia C enter will a ls o provide live online event strea mi ng of I ndyC a r S eries a nd F irestone Indy L ights prac tic e a nd qua lifying ses si ons. T he I ndyC ar. com M edia C enter inc ludes a n integrated s earch feature that allows fans to view archived video by s ea rc hing by driver, tra ck , video title, etc. I t a ls o includes a built-i n option a llowing fa ns to easily s hare a udio and video clips on their pers ona l F ac ebook, M yS p a ce, twitter, d igg, or more than 20 other top soc ial networ L iveWorld Inc . (OT CPK :L VWD ) L iveW orld Inc. R eports P rel imina ry E arnings R es ults for L iveW orld Inc. reported preliminary earnings res ults for the firs t quarter of 2009. F or the quarter, the company wa s cas h flow pos itive by the F irst Q ua rter of 2009 a pproxima tely $65, 000 for the firs t quarter of 2009. This is an improvement of a pprox ima tely $162, 000 compared to the firs t qua rter of 2008 a nd a pprox imately $97, 000 when c ompared to the fourth quarter of 2008. T he revenue for the fi rs t quarter was approximately $2.5 million. T his repres ented a decreas e of 15% compared to $3. 0 million in revenue for the fi rs t qua rter of 2008 and a 16% decrease compared to the $3.0 mi llion in revenue for the fourth quarter of 2008. Modern Times G ro up Mtg AB (OM: MTG Modern Times G roup MT G AB M ulls an E quity B uy back Modern Times G roup MT G AB expec ts to initia te a s ha re repurc ha s e progra m to be approv ed a t its Annua l G eneral Meeting to be held on B) Ma y 11, 2009. U nder the proposal, M odern T imes will repurchase its o wn C las s C sha res . T he repurc hase ma y only be e ffected through a public offer directed to al l holders of C la s s C shares and s hall comprise all outs ta nding C la ss C s hares . T he purcha s e may be effected at a purchas e pric e corres ponding to not less tha n S E K 5 a nd not more than S E K 5. 1. T he total price will not exc eed S E K 1.88 milli on. P ayment for the C la s s C s hares s hall be ma de in ca s h. T he purpos e of the repurchas e is to ens ure the deliv ery of Cla s s B s hares under the P lan. The Company would a ls o s eek approva l to repurc ha se C la s s A and/or Cl a ss B s ha res that the Company's holding does not a t a ny time ex ceed 10% of the tota l number of shares in the C ompany. T he repurchas e of s ha res s hall take pla ce on the N asda q O MX S toc kholm a nd may only occ ur at a price within the s ha re price interva l regis tered at that time, where s hare pric e in terv al means the differenc e between the highes t buying price and l owest selling pric e. The purpose of the authoriza tion is to give the B oard of Di rec tors increas ed flex ibility to continuously dec Modern Times G ro up Mtg AB (OM: MTG Modern Times G roup Mtg A B P ropos es Amendment to Modern Times G roup Mtg AB announced at A nnual G enera l Meeting to be held on M a y 11, 2009, to propos e a mendment of the A rtic les of B) its Artic les of As so ciation; P ropos es Div idend Ass ocia tion. T he company propos ed a dividend of S E K 5. 00 per share. T he record date is propos ed to be M ay 14, 2009. Modern Times G ro up Mtg AB (OM: MTG Upda te to Modern T imes G roup Mtg AB ’ s E quity B uybac k As of D ecember 31, 2008, Modern Times G roup Mtg A B ha s ma de no repurchases under the plan. B) Open T ext C orp. (Nas daqG S : OT E X) L ock heed Ma rtin Aeronautics E xtends Us e of O pen O pen T ext C orp. announced L oc kheed Ma rtin Aeronautic s J oint-S erv ice T echnical D a ta (J T D ) I ntegrated P roduct T ea m (I P T), based in F ort T ex t's D igital As set M a na gement S olution W orth, T exas , extended its us e of O pen T ext's Digital As s et Management (D AM) solution to ma na ge graphic s and rich media content for F - 35 Lightning I I T echnic al Da ta . T he F -35 L ightning I I, or J oint S trike F ighter (J S F ), is a DoD multi -s ervice/mul ti-na tiona l effort to create a next- generation stea lth fighter plane. T he company behind the des ign of the J T D I P T s ys tem, and the J oint-S ervice Technica l D ata IP T team selec ted O pen Tex t to complement a n exis ting X ML -ba s ed content management s ys tem (C M S ). W ith its J av a E nterpris e E dition (JE E ) a rchitecture and open interfac e, the DAM s oftware from O pen T ext is seamles sly integra ted with a complex array of unique F -35 P rogra m T echnical D a ta development a nd support authoring work flows. Open T ext C orp. (Nas daqG S : OT E X) Anthony G allo to J oin O pen T ext C orp. as V ice P res ident O pen T ext C orp. announced tha t it ha s ac quired V izible Corpora tion. Anthony G a llo, former F ounder and C hief T echnology O fficer of V izi ble, of Digi ta l Media E xperiences who will join O pen T ex t a s V ic e P res ident of D igital M edia E x periences . P erfec t World C o. , Ltd. P erfect W orld L aunches Hot D a nce P arty 3.0 - B a by P l a n P erfect W orld Co. L td. announced it launc hed 'H ot Dance P arty 3. 0-B aby P la n' e xpa nsion pac k. 'H ot Da nc e P a rty ' was P erfec t W orld's firs t (Nas daqG S : PW R D) E xpa ns ion P ack 3D online ca s ual ga me. T he game ha s been well-received by online game play ers s ince its la unch beca us e of its excellent graphic des ign, innovative ga me s ys tems a nd continued introduction of new fea tures . I n 'Hot Dance P arty 3. 0-B aby P la n,' a 'B a by R ea ring S y stem' is a dded to the exis ting c la ss ic pla y mode, enhancing the fun of players ' game life. P la y ers who ha ve paired up through the game's 'P a rtnership S ys tem' ca n be bes towed a baby by an angel a nd enjoy the fun of rais ing the baby in game together. T enc en t Ho ldings Ltd. (S E H K: 700) T enc ent H oldings Limited Mulls a s ha re buy back O n April 7, 2009, T encent Holdings L imited a nnounc ed that it’s B oard of Directors would seek a pprov al in the c ompany’s Annua l G eneral Meeting on May 13, 2009 , to commence a share buybac k progra m. Under the program, the C ompany will repurchas e up to 10% of the a ggrega te of th e nominal amount of the iss ued s hare capita l of the Compa ny a s a t the date of pass ing this res olution and the s a id approv al sha ll be limited ac cordingly. T he s hare buyba ck progra m s hall ex pire at the conclusio n of the nex t annual genera l meeting of the C ompany, the expiration of the period within which the next a nnua l general meeting of the C ompa ny is required by the Articles of As s ociation of the Company or any a p plicable la w to be h eld and the date on which the authority set out i n this resolu tion is revok ed or v aried by a n ordina ry resolution of the sha reholders in genera l meeting. Figure 7. Key Developments Source. Capital IQ
  • 9. Page 9 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 28 under $10 million. Online gaming companies dominate the top of the list with four of the top five by market cap. Market C ap (US D m) Tencent Holdings L td. S handa Interac tive Entertainment L td. 3620. 4 Neteas e.c om Inc . 3614.0 IA C/InterA c tiveCorp. 2339.7 S ohu.c om Inc . 1905.8 Open Tex t Corp. 1822.2 Giant Interactiv e Group, Inc . 1710.8 Gree, Inc . 1267.3 Modern Times G roup Mtg A B 1251.5 Perf ec t World Co., L td. 896.3 V alueClick Inc . 877.1 Mix i, Inc . 589.1 NEOWIZ Games Corporation 506.3 Chines e Gamer International 479. 6 K ings of t Co. L td. 448.9 United Online Inc . 440.3 The9 L imited 355. 3 GigaMedia L td. 333.6 S K Communic ations Co., L td. 315.4 NetDragon WebS of t, Inc . 283.7 S hutterf ly, Inc . 270.5 XING A G 193. 0 Gamania Digital Entertainment Co. , 155.1 GungHo Online Entertainment, Inc . 145. 6 CDC Corp. 135.9 Y edangOnline Corp. 115. 4 Openw ave S ys tems Inc . 111. 6 A c toz S of t Co., L td. 94.7 DA DA S pA 92.6 GameOn Co L td. 89.6 Moggle, Inc 83.5 HanbitS of t, Inc . 82.9 OA O R B C Inf ormation S y s tems 72. 8 DigitalTow n, Inc . 67.9 K aboos e Inc . 66.4 TheS treet.com, Inc . 64.7 Tree.Com, Inc. 54.9 J umpTV Inc . 54.0 Cyberplex Inc. 53.5 B eyond Commerc e, Inc . 52.9 NeXplore Corporation 50.2 PhotoChannel Netw orks Inc . 47.6 S park Netw orks , Inc . 46.2 B roadWebA s ia Inc . 38. 2 G eoS entric Oy j 35.8 Webz en Inc . 34.3 Ngi Group Inc . 33.7 Wiz z ard S of tw are Corporation 32.5 Northgate Tec hnologies L imited 30.3 S ites earc h Corporation 28. 2 Dolphin Digital Media, Inc . 27. 7 G ravity Co., L td 26. 1 Eolith Co. L td. 24. 6 Frogs ter Interactiv e Pictures A G 24. 2 A Q Interactiv e, Inc . 23.4 L ookS mart, L td. 20.3 DXN Holdings B hd 18.9 J umbuck Entertainment Pty L td. 17.3 IdeaEdge, Inc . 16.6 Fluid Mus ic Canada, Inc . 14.2 Ex tens ions , Inc . 14.2 Quepas a Corp. 11.7 A c celeriz e New Media, Inc . 10.4 Y nk K orea Inc . 10.1 UOMO Media, Inc 9. 4 Worlds .c om Inc . 8. 9 L ingo Media Corporation 8. 4 CornerW orld Corporation 7. 7 S NA P Interactiv e, Inc . 7. 6 S pectrumDNA , Inc . 7. 3 MOK O. mobi L imited 5. 5 IA S Energy, Inc . 4. 9 is eemedia Inc . 4. 6 Magnitude Inf ormation S ys tems Inc. 4. 4 B right Things plc 4. 3 B etaw av e Corporation 3. 8 Wy nds torm Corporation 3. 1 Wooz yFly, Inc . 2. 6 V OIS , Inc . 2. 5 L iveWorld Inc . 2. 5 DigitalPos t Interactiv e, Inc . 1. 1 Unis erve Communic ations Corp. 0. 8 B igs tring Corp. 0. 7 Financial Media Group, Inc . 0. 5 The Parent Company 0. 4 ZipLocal Inc . 0. 3 Total S port Online A S 0. 2 A s s oc iated Media Holdings Inc . 0. 1 China G atew ay Corporation 0. 0 S ocial Media V enures , Inc . 0. 0 Dibz International, Inc . 0. 0 S NM Global 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
  • 10. Page 10 TEV/Revenue (LTM) averages 4.2x: The overall average TEV/Revenue (LTM) multiple for our group is 4.2x – up from 3.6x last week (Figure 9). However, this is skewed by Gree (3633-TSE) at 41.2x and Beyond Commerce Inc. (BYOC- OTCBB) at 30.8x. The median is only 1.3x. Note that we exclude multiples greater than 50x. Thirty-two companies have multiples under 1.5x. T E V/L T M R evenue (x) 45. 0 41.2 40. 0 35. 0 30. 8 30. 0 23.6 25. 0 20. 0 17.2 15.4 14.9 15. 0 10. 0 8.4 9.2 7. 0 A verage, 4.2 4.64.85.0 5.4 3. 73.7 3.94.24.34.4 5. 0 2.52.52.7 2.92.92.9 3.0 1.41.6 2.02.02.2 0.00.00.00.10.10.10.10. 20.20.20.3 0.40.40.50.50.60.60.7 0.80.91. 01.01.11.11.11.11.1 1.21.21.31. 3 0. 0 N E O WIZ G ames C orporation MO K O .mobi L imited UO MO Media, Inc J umbuck E nterta inment P ty L td. G ungH o O nline E ntertainment, Inc. 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 T ree.C om, Inc. C DC C orp. G a meO n C o Ltd. 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 S handa Interac tive E ntertainment Ltd. United O nline Inc . S NAP Intera ctive, Inc. O pen T ex t C orp. P hotoC ha nnel Network s Inc. J umpT V Inc . C hina G atewa y C orporation IAC /InterAc tiveC orp. S pa rk N etwork s , Inc . C y berplex Inc . V alueC lic k Inc . E olith C o. Ltd. G igaMedia Ltd. NetDra gon WebS oft, Inc . is eemedia Inc . XIN G AG S ohu.com Inc . Mix i, Inc . F rogs ter Intera ctiv e P ic tures AG As s ociated Media Holdings Inc . T encent Holdings Ltd. G ree, Inc . B right T hings plc S ocial Media V enures , Inc . L iveWorld Inc . O penwave S y s tems Inc . ZipLoca l Inc . Y nk K orea Inc . K aboos e Inc . H anbitS oft, Inc . Y edangO nline C orp. B igs tring C orp. T otal S port O nline AS S hutterfly , Inc . K ings oft C o. Ltd. Acceleriz e New Media , Inc . 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 5.7x (down from 8.6x last week). On a geographic basis, the United States has the most companies (41), trading at an average of 4.8x revenue (up from 3.4x last week) (Figure 11). Eleven of the companies are Canadian (average 8.5x revenue). Average TEV/LTM Revenue - By Exchange Average TEV/LTM Revenue - By Country 20.0 20.0 17.2 17.2 18.0 18.0 16.0 14.9 16.0 14.0 14.9 14.0 15.7 12.0 12.0 (x) 10.0 6.9 (x) 8.0 10.0 5.7 5.0 8.5 6.0 8.0 4.3 4.1 3.0 5.0 4.0 1.9 1.9 1.7 1.4 4.8 1.3 0.9 0.6 0.4 0.4 6.0 4.3 2.0 0.2 0.1 4.0 1.9 1.4 0.0 1.4 2.0 1.3 0.9 0.6 0.5 OTCPK OTCBB GTSM NasdaqGM NasdaqCM TSE KOSE NasdaqGS OM HLSE RTS OSE AMEX KLSE TSX XTRA BSE AIM 0.4 0.1 TSXV ASX 0.0 Germany Kingdom Canada Malaysia United China Japan Finland Russia Hong India South Korea Kong States Taiwan Australia Sweden United # Companies 1 5 2 13 22 1 1 9 2 5 4 5 1 2 1 2 1 7 1 1 # Companies 1 3 11 1 41 1 9 6 1 2 1 2 9 1 1 Figures 10 & 11. TEV/Revenue Ranking (Exchange, Country) Source. Capital IQ TEV/EBITDA (LTM) averages 8.8x: The average multiple for the 30 companies with positive EBITDA (and multiples under 100x) is 8.8x LTM EBITDA (slightly down from 9.1x last week), led by Tencent Holdings Ltd.’s (700-SEHK) 30.4x multiple
  • 11. Page 11 (Figure 12). Seventeen of the companies have EBITDA multiples under 7x. The median multiple is 6.7x (vs. 8.0x last week). T E V/L T M E B IT DA (x) 35.0 30. 4 29. 5 30.0 25.0 21.5 20.0 18.3 15.0 13.2 13.6 10.9 11. 1 9.9 10.0 10.2 A v erage, 8.8 8. 8 9.1 9.1 10.0 7.9 8.4 6.3 6. 4 6.4 6.6 6.7 5.6 4.8 4.9 5. 0 3.4 3.8 3.8 3. 8 2.6 1. 3 1.8 0.1 0.5 0. 0 NE O WIZ G ames C orporation J umbuc k E ntertainment P ty Ltd. G ungHo O nline E ntertainment, Inc. G amania Digital E ntertainment C o., Ltd. C hines e G amer International Unis erv e C ommunic ations C orp. O AO R B C Information S y s tems Northgate T ec hnologies L imited DX N Holdings B hd G ameO n C o L td. C DC C orp. S K C ommunications C o. , L td. Modern T imes G roup Mtg AB S handa Interac tiv e E ntertainment L td. U nited O nline Inc . S NAP Interac tive, Inc . O pen T ex t C orp. NetDragon WebS oft, Inc. S park Network s , Inc. G igaMedia Ltd. V alueC lic k Inc. S ohu.c om Inc. IAC /InterAc tiveC orp. Mix i, Inc. C y berplex Inc. T encent Holdings Ltd. XING AG Y edangO nline C orp. K aboos e Inc. S hutterfly , Inc . K ings oft C o. L td. 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 7.6x. On a geographic basis, the United States has the most companies (41), trading at an average of 8.3x EBITDA (Figure 14). Eleven of the companies are Canadian (average 10.5x EBITDA). Average TEV/LTM EBITDA - By Exchange Average TEV/LTM EBITDA - By Country 35.0 30.4 35.0 30.0 30.0 29.5 25.0 29.5 25.0 20.0 (x) 15.2 20.0 15.0 13.2 13.2 (x) 10.0 9.7 9.1 15.0 12.6 10.0 7.6 7.4 7.2 10.5 10.2 9.6 6.7 6.4 5.6 5.1 8.3 5.0 2.4 10.0 7.2 6.4 1.8 0.5 5.6 0.0 5.0 3.7 OTCNO OTCPK OTCBB GTSM NasdaqGM NasdaqCM TSE NasdaqGS OSE RTS HLSE KOSE AMEX TSX XTRA TSXV ASX 0.0 0.0 1.8 Germany China Canada Hong Japan United Russia Finland India Kong South Korea States Taiwan Australia Norway # Companies 2 1 5 2 5 13 1 22 5 2 4 1 1 9 7 2 1 # Companies 1 3 9 11 1 6 41 2 1 1 9 2 1 Figures 13 & 14. TEV/EBITDA Ranking (Exchange, Country) Source. Capital IQ P/E (LTM) averages 15.8x: The average multiple for the 32 companies with positive earnings (and multiples under 100x) is 15.8x LTM EPS (slightly down from 16x last week), led by TheStreet.com’s (TSCM-NASDAQ) 68.3x multiple (Figure 15). Fourteen of the companies have P/E multiples under 10x. The median is just 10.9x.
  • 12. Page 12 P /E LT M (x) 80. 0 68. 3 70. 0 60. 8 60. 0 50. 0 40. 8 40. 0 37. 2 30. 0 27. 6 28. 9 24. 9 20. 1 20. 1 20. 0 17. 4 A verage, 15.8 15. 7 11. 7 12. 3 13. 1 9. 3 9. 4 9. 9 10. 1 10. 6 11.1 11. 2 10. 0 7. 7 5. 4 2. 4 3. 0 3. 3 3. 6 3. 7 1. 1 1. 6 1. 7 2. 0 0. 0 NE O WIZ G ames C orporation J umbuc k E ntertainment P ty L td. G amania Digital E ntertainment C o. , L td. C hines e G amer International Northgate T echnologies L imited DXN Holdings B hd G iant Interac tive G roup, Inc . G ameO n C o L td. Modern T imes G roup Mtg AB T he9 L imited Neteas e. com Inc . S handa Interac tive E ntertainment L td. S NAP Interactive, Inc . Ngi G roup Inc . O pen T ex t C orp. T heS treet. com, Inc . Worlds . com Inc . NetDragon WebS oft, Inc . G igaMedia L td. S park Network s , Inc . C yberplex Inc . S ohu. com Inc . IAC /InterAc tiveC orp. Mix i, Inc . T encent Holdings L td. XING AG P erfect World C o. , L td. Y edangO nline C orp. K ings oft C o. Ltd. S hutterfly , Inc . DADA S pA Actoz 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 12.9x. On a geographic basis, the United States has the most companies (41), trading at an average of 17.7x earnings (Figure 17). Eleven of the companies are Canadian (average 21.3x EPS). Average P/E - By Exchange Average P/E - By Country 80.0 70.0 68.3 60.8 70.0 60.0 60.0 60.8 50.0 50.0 (x) 40.0 28.9 27.5 40.0 22.0 (x) 30.0 19.5 17.4 30.0 21.3 18.8 17.7 20.0 12.9 11.8 11.2 10.6 9.4 9.3 11.2 10.6 10.0 8.2 20.0 9.4 9.3 0.0 7.4 6.0 10.0 OTCPK OTCBB NasdaqGM GTSM RTS TSE OSE HLSE NasdaqGS AMEX TSX XTRA TSXV ASX 0.0 0.0 Germany Russia Canada Japan United Finland China South Korea States Taiwan Australia Norway # Companies 5 1 5 9 2 5 1 22 4 2 1 2 2 13 # Companies 1 11 6 41 3 1 2 2 9 9 1 Figures 16 & 17. P/E Ranking (Exchange, Country) Source. Capital IQ
  • 13. Page 13 UPCOMING EVENTS E arnings Calendar C ompany D ate & T ime Qu arter Conf Call D etails S hutterfly , Inc . (N asdaqG S : S F L Y ) W ednes day, April 29, 2009 5:00 P M (E D T) Q 1 2009 877-591-4956 I AC /I nterAc tiveC orp. (Nas daqG S :I AC I) W ednes day, April 29, 2009 11:00 AM (E D T) Q 1 2009 NA T ree. C om, Inc . (N asdaqG M :T R E E ) F riday, M ay 01, 2009 11:00 AM (E DT ) Q 1 2009 877-407-0782 Figure 18. Earnings Calendar Source. Company reports
  • 14. Page 14 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 1 0.4 0.3 8 18.8 % 7 2.7 % 8 .6% -2 4.0 % -47 .2% -51. 3% Actoz S of t C o., L td. KR W A 052 790 KO SE 9 4.7 1 4,80 0.0 0 15.6 % 3 2.7 % 48 .0% 74 .9% 91.7 % -7.5 % AQ Inte ractive , Inc. JPY 3 838 TSE 2 3.4 4 3,20 0.0 0 0.0 % 3 0.9 % 50 .0% 8 .3% -78 .2% -81. 6% As s ocia ted Media H oldings Inc. US D A S MH OT C P K 0 .1 0.0 0 42.9 % 4 2.9 % -8 0.0% -7 5.0 % 81.8 % -96. 0% B igstring Corp. US D B S GC OT C B B 0 .7 0.0 1 -6.7 % 3.7% -1 7.6% -4 8.1 % -92 .2% -93. 6% B e tawave Corpora tion US D B W AV OT C B B 3 .8 0.1 3 0.0 % -27. 8% -3 5.0% -3 8.1 % -55 .2% -69. 0% B e yond Commerce, Inc. US D B Y OC OT C B B 5 2.9 1.2 8 -0.8 % 1 32.7 % 25 .5% -3 9.0 % -44 .3% -61. 2% B right T hings plc GBP A IM:B G T AI M 4 .3 0.0 1 -14. 5% -14. 5% 17 .6% 56 .4% -41 .2% -65. 4% B roa dW ebAs ia Inc. US D B W BA OT C P K 3 8.2 0.4 5 -11. 8% -40. 0% -1 8.2% -6 9.8 % -85 .0% -84. 5% C DC C orp. US D C H IN .A N as da qG S 13 5.9 1.2 6 10.5 % 3 8.5 % 12 .5% -1 3.1 % -66 .1% -68. 0% C hina G ate wa y C orpora tion US D CGWY OT C B B 0 .0 0.0 0 1 00. 0% 1 00.0 % 0 .0% -8 6.7 % -96 .7% -95. 6% C hine s e G amer International TWD G TS M:3 083 GT S M 47 9.6 19 0.0 0 8.0 % 2 4.2 % 10 6.5% 18 1.5% 74.3 % -4.0 % C ornerW orld C orporation US D CWR L OT C B B 7 .7 0.1 2 -14. 3% -14. 3% -5 2.0% -4 0.0 % -84 .0% -85. 0% C yberplex Inc. C AD T S X:CX TSX 5 3.5 1.2 2 35.6 % 1 65.2 % 24 8.6% 17 1.1% 62.7 % 8.9 % D ADA S pA E UR C M :DA CM 9 2.6 4.2 9 -8.7 % -13. 2% -3 9.6% -3 6.5 % -66 .7% -73. 5% D XN Holdings B hd MY R DXN KL SE 1 8.9 0.3 0 5.4 % 5.4% -1 9.2% -1 5.7 % -46 .8% -47. 3% 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 1 .1 0.0 2 -25. 0% 2 75.0 % -4 0.0% -5 7.1 % -92 .9% -94. 6% 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 2 7.7 0.5 7 -14. 9% 1 6.3 % -2 7.8% -3 7.4 % NM -49. 6% E olith C o. L td. KR W A 041 060 KO SE 2 4.6 70 0.0 0 26.1 % 2 1.7 % 18 .6% 6 .1% -33 .0% -44. 9% 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 .5 0.0 1 -15. 8% -36. 0% -9 0.0% -9 7.3 % -96 .0% -99. 2% F luid M us ic Ca nada, Inc. C AD T S X:F MN TSX 1 4.2 0.3 3 -45. 0% 0.0% -5 .7% -1 7.5 % NM -83. 8% F rogs te r Interactive P icture s AG E UR FR G XT R A 2 4.2 7.7 2 10.3 % 1 08.6 % 28 .7% 69 .7% 71.9 % -1.7 % G a ma nia Digital E ntertainment C o., L td. TWD 6 180 GT S M 15 5.1 3 4.4 0 1.8 % 1 7.8 % 52 .5% 12 5.6% 9.9 % -6.9 % G a me On C o L td. JPY 3 812 TSE 8 9.6 9 3,00 0.0 0 2.3 % 1 5.8 % -2 4.3% 25 .2% -8. 8% -43. 1% G e oS e ntric O yj E UR G E O1V H LS E 3 5.8 0.0 3 -25. 0% 0.0% -2 5.0% -2 5.0 % -50 .0% -57. 1% G iant Intera ctive G roup, Inc. US D GA NYS E 1,7 10. 8 7.5 7 4.3 % 2.9% 28 .3% 24 .9% -35 .5% -56. 0% G iga Media Ltd. US D G IG M N as da qG S 33 3.6 6.1 8 10.5 % 9.5% -1 0.2% -3.5% -59 .2% -68. 9% G ravity C o., L td US D G RV Y N as da qG M 2 6.1 0.9 4 10.6 % 5 1.6 % 59 .3% 13 .3% -35 .2% -53. 0% G ree, Inc. JPY T S E :36 32 TSE 1,2 67. 3 5,70 0.0 0 5.2 % 1 0.0 % 14 .9% NM NM -9.5 % G ungH o O nline E ntertainment, Inc. JPY 3 765 OS E 14 5.6 12 7,50 0.0 0 -1.5 % 1 0.9 % 17 .1% 15 .2% -47 .7% -70. 7% H anbitS oft, Inc. KR W A 047 080 KO SE 8 2.9 5,03 0.0 0 45.6 % 4 9.3 % 51 .1% 52 .4% 9.3 % -28. 2% IAC /InterActiveC orp. US D I ACI N as da qG S 2,3 39. 7 1 6.6 0 2.9 % 1 3.8 % 12 .4% 14 .4% -61 .0% -67. 1% IAS E nergy, Inc. US D I AS C .A OT C B B 4 .9 0.0 7 55.6 % 0.0% 25 0.0% -5 0.0 % -69 .6% -80. 0% IdeaE dge, Inc. US D O TC B B :ID AE OT C B B 1 6.6 0.3 9 14.7 % -2.5 % -5 3.0% -8 1.4 % -45 .1% -86. 2% is ee media Inc. C AD IEE T S XV 4 .6 0.1 1 10.0 % 3 7.5 % -1 2.0% 57 .1% -65 .6% -69. 4% J umbuck E ntertainment P ty Ltd. AU D A S X:J M B AS X 1 7.3 0.4 8 -4.0 % 6.7% 23 .1% -2.0% -20 .0% -26. 7% J umpT V Inc. C AD T S X:J T V TSX 5 4.0 0.5 8 5.5 % 3 8.1 % 93 .3% -1 9.4 % -3. 3% -54. 7% K a boos e Inc. C AD T S X:K AB TSX 6 6.4 0.5 8 0.0 % 6 5.7 % 46 .8% -2 1.6 % -58 .3% -59. 4% K ings oft Co. Ltd. HKD 3 888 S E HK 44 8.9 3.2 4 -1.5 % 2 0.9 % 17 .8% 88 .4% 13.7 % -24. 8% Lingo Media Corporation C AD T S XV :LM T S XV 8 .4 0.8 0 -3.6 % -11. 1% -2 0.0% -5 2.4 % -58 .3% -63. 6% Live World Inc. US D L VW D OT C P K 2 .5 0.0 8 -38. 5% -60. 0% 6 .7% 14 .3% -50 .0% -89. 3% LookS mart, Ltd. US D L OOK N as da qG M 2 0.3 1.1 9 -0.8 % 1 9.0 % -2 0.7% -3 3.1 % -67 .9% -75. 2% M agnitude Information S ys tems Inc. US D M AG Y OT C B B 4 .4 0.0 1 -33. 3% -47. 4% -6 3.0% -5 0.0 % -47 .4% -66. 7% M ixi, Inc. JPY 2 121 TSE 58 9.1 38 5,00 0.0 0 -1.5 % 2 2.2 % -3 0.5% -4 0.3 % -58 .5% -59. 8% M ode rn Times G roup Mtg AB SE K MT G B OM 1,2 51. 5 15 5.5 0 -1.0 % 2 3.9 % -5 .2% -9.3% -62 .6% -65. 8% M oggle , Inc US D M MOG OT C B B 8 3.5 2.3 0 15.0 % 1 5.0 % 53 .3% NM NM 0.0 % M OK O.mobi L imited AU D MKB AS X 5 .5 0.0 9 20.0 % 5 0.0 % 80 .0% 63 .6% 2 46. 2% -10. 0% N E OW IZ G ames C orpora tion KR W A 095 660 KO SE 50 6.3 7 0,00 0.0 0 42.6 % 7 9.3 % 24 9.1% 30 3.5% 1 06. 2% -3.3 % N etDragon W ebS oft, Inc. HKD 7 77 S E HK 28 3.7 4.1 6 -3.3 % 2 4.6 % 42 .5% 30 .0% -57 .9% -69. 4% N ete as e.com I nc. US D NT E S N as da qG S 3,6 14. 0 2 9.3 7 2.7 % 3 2.1 % 60 .7% 40 .5% 44.4 % 2.2 % N eXplore Corpora tion US D N XP C OT C P K 5 0.2 0.9 0 20.0 % 5 5.2 % -1 0.0% 30 .4% NM -37. 9% N gi G roup Inc. JPY 2 497 TSE 3 3.7 2 7,40 0.0 0 20.1 % 5 7.5 % -4 6.0% -6 4.9 % -81 .2% -83. 6% N orthgate Te chnologies L imited IN R 5 900 57 BS E 3 0.3 4 3.2 5 8.8 % 4 2.5 % -1 8.1% -4 2.9 % -89 .1% -90. 8% Open T e xt Corp. US D O TE X N as da qG S 1,8 22. 2 3 5.1 1 4.4 % 1 0.5 % 12 .3% 37 .4% 1.4 % -10. 2% Openwave S ys tems Inc. US D O PW V N as da qG S 11 1.6 1.3 4 8.1 % 7 1.8 % 83 .6% 59 .5% -44 .9% -47. 5% P e rfect W orld C o., Ltd. US D P W RD N as da qG S 89 6.3 1 6.9 9 5.2 % 3 7.8 % 0 .1% -8.2% -38 .0% -49. 3% P hotoChannel N etwork s Inc. C AD T S XV :P N T S XV 4 7.6 1.7 0 6.2 % 4.9% -2 .9% -1 5.0 % -51 .8% -59. 0% Quepa s a C orp. US D Q PSA N as da qC M 1 1.7 0.9 2 -7.1 % -18. 6% -4 9.7% -6 2.1 % -68 .8% -73. 4% OA O R B C Information S ys tems US D R BC I R TS 7 2.8 0.5 3 28.0 % 1 18.8 % -1 2.5% -8 6.9 % -94 .2% -94. 3% S handa Interactive E ntertainme nt L td. US D S NDA N as da qG S 3,6 20. 4 5 2.1 8 22.2 % 4 3.7 % 94 .3% 10 1.6% 73.9 % 12.0 % S hutte rf ly, Inc. US D S F LY N as da qG S 27 0.5 1 0.7 5 10.3 % 2 0.9 % 43 .5% 64 .9% -26 .4% -40. 2% S K C ommunications Co., Ltd. KR W A 066 270 KO SE 31 5.4 1 0,20 0.0 0 10.9 % 3 7.8 % 63 .2% 12 .2% -33 .1% -48. 2% S N AP Inte ra ctive , Inc. US D S T VI OT C B B 7 .6 0.7 0 -6.7 % -26. 3% -3 3.3% 25 0.0% 0.0 % -35. 2% S N M G lobal H oldings US D S NM N OT C P K 0 .0 0.0 0 -100 .0% -100 .0% -10 0.0 % -1 00.0 % -100 .0% -100 .0% S ocia l Media V e nures , Inc. US D S MVI OT C P K 0 .0 0.8 8 -26. 7% -26. 7% -1 5.4% 44 .3% NM -82. 4% S ohu. com Inc. US D S OH U N as da qG S 1,9 05. 8 5 0.0 0 8.2 % 3.2% 22 .9% 1 .2% -11 .5% -45. 4% 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 6.2 2.2 5 0.0 % -1.7 % -1 2.5% -1 9.9 % -47 .3% -51. 6% S pectrumDN A, Inc. US D S P XA OT C B B 7 .3 0.1 5 -21. 1% -25. 0% 0 .0% -2 5.0 % NM -75. 0% T encent Holdings L td. HKD 7 00 S E HK 14, 360 .1 6 1.8 0 2.5 % 3 1.5 % 43 .7% 37 .0% 32.6 % -14. 2% T he P arent C ompany US D K IDS .Q OT C P K 0 .4 0.0 2 59.1 % 7 5.0 % -7 0.8% -9 8.4 % -99 .5% -99. 6% T he 9 L imited US D NC TY N as da qG S 35 5.3 1 3.2 5 -6.4 % 1 4.1 % -6 .1% -1 3.9 % -34 .2% -53. 5% T he S treet.com, Inc. US D T S CM N as da qG M 6 4.7 2.1 2 6.5 % 9.3% -3 7.5% -4 3.5 % -77 .1% -77. 7% 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 5 4.9 5.5 0 7.4 % 2 9.4 % 32 .9% 14 4.4% NM -50. 5% U nis erve C ommunications Corp. C AD T S XV :U S S T S XV 0 .8 0.0 4 -20. 0% -20. 0% 0 .0% -5 0.0 % -88 .6% -91. 1% U nited Online Inc. US D UNTD N as da qG S 44 0.3 5.3 6 5.7 % 3 1.1 % -1 3.8% -3 2.2 % -48 .8% -57. 1% U OMO Media , Inc US D U OMO OT C B B 9 .4 0.1 1 37.5 % 8 3.3 % 57 .1% -4 2.1 % -72 .5% -86. 3% V a lueC lick Inc. US D V CL K N as da qG S 87 7.1 1 0.1 1 9.9 % 5 6.3 % 62 .5% 49 .1% -46 .1% -51. 9% V O IS , Inc. US D V OIS OT C B B 2 .5 0.3 0 30.4 % -25. 0% -2 5.0% -6 0.0 % NM -94. 6% W ebze n Inc. US D W ZE N N as da qG M 3 4.3 2.8 9 28.4 % 9 2.7 % 20 1.0% 18 9.0% -3. 7% -35. 1% W iz za rd S of twa re Corpora tion US D W ZE AM E X 3 2.5 0.6 9 50.0 % 7 2.5 % -1 0.4% -1 8.8 % -68 .5% -70. 6% 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 8 .9 0.1 7 0.0 % -5.6 % 13 .3% -2 2.7 % -62 .2% -62. 2% W ynds torm C orporation US D W YND OT C B B 3 .1 0.1 7 41.7 % 4 1.7 % 41 .7% -3 2.0 % NM -80. 0% XIN G AG E UR O 1B C XT R A 19 3.0 2 8.2 8 -0.8 % 1 3.1 % -6 .6% 13 .6% -22 .5% -39. 4% Y e dangOnline Corp. KR W A 052 770 KO SE 11 5.4 9,81 0.0 0 13.9 % 4 0.1 % 42 .6% 45 .3% -9. 2% -21. 8% Y nk K orea Inc. KR W A 023 770 KO SE 1 0.1 5,50 0.0 0 20.6 % 5 7.6 % 27 .5% -3 3.7 % -58 .5% -64. 3% ZipLocal Inc. C AD T S XV :ZIP T S XV 0 .3 0.0 1 -66. 7% -66. 7% -5 0.0% -7 5.0 % -96 .3% -97. 5% H igh 1 00. 0% 2 75.0 % 25 0.0% 30 3.5% 2 46. 2% 12.0 % Low -100 .0% -100 .0% -10 0.0 % -1 00.0 % -100 .0% -100 .0% A vera ge 437.0 3.3% 23.8% 15.7% 4.3% -33.2% -57.6% M edian 3.6 % 1 9.0 % 0 .1% -1 5.4 % -47 .3% -60. 6% Figure 19. Price Performance Source. Capital IQ
  • 15. Page 15 C omparable C ompany A nalys is > W eb 2.0 V aluatio n Multiples P r imary US D Market TE V/LT M TE V/ NTM 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 evenu e R evenu e E BITDA E BITDA P /LT M E P S P /NT M E P S Acce le rize N ew Me dia, Inc. D irect Marketing U nite d S tates OT C B B AC LZ 10. 4 3.9 x - - - - - Actoz S of t C o., L td. G aming S outh K ore a K OS E A 052 790 94. 7 1.0 x - 4.8 x - 15 .7x - AQ Inte ractive , Inc. G aming J a pan TSE 3 838 23. 4 - - - - - - As s ocia ted Media H oldings Inc. Mobile U nite d S tates OT C P K AS MH 0. 1 8.4 x - - - - - B igstring Corp. Ins ta nt M es s aging U nite d S tates OT C B B BS G C 0. 7 23.6 x - - - - - B e tawave Corpora tion Me dia U nite d S tates OT C B B B WA V 3. 8 - - - - - - B e yond Commerce, Inc. S ocia l Ne tworking U nite d S tates OT C B B BYO C 52. 9 30.8 x - - - - - B r ight T hings plc S ocia l Ne tworking U nite d K ingdom AIM AIM :B G T 4. 3 17.2 x - - - - - B r oa dW ebAs ia Inc. S ocia l Ne tworking U nite d S tates OT C P K B WB A 38. 2 - - - - - - C D C C orp. G aming H ong K ong N as da qG S C HIN .A 1 35. 9 0.4 x 0.5x 10.2 x 8.4x - 1 9.4 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 GT S M G T S M :308 3 4 79. 6 9.2 x - 18.3 x - 24 .9x - C ornerW orld C orporation C ontent U nite d S tates OT C B B CWR L 7. 7 7.0 x - - - - - C yberplex Inc. Advertis ing C anada TSX T S X:C X 53. 5 1.1 x 0.8x 13.2 x 8.8x 11 .2x 1 2.2 x D AD A S pA S ocia l Ne tworking Italy CM CM:DA 92. 6 0.6 x - 3.8 x - 5. 4x - D XN Holdings B hd S ocia l Ne tworking M alays ia KL SE D XN 18. 9 0.5 x - 3.8 x - 3. 7x - D ibz Inte rnational, Inc. S N S 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 DGLP 1. 1 5.0 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 27. 7 - - - - - - E olith C o. L td. G aming S outh K ore a K OS E A 041 060 24. 6 1.3 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. 5 - - - - - - F luid M us ic Ca nada, Inc. Me dia U nite d S tates TSX T S X:F MN 14. 2 - - - - - - F rogs te r Interactive P icture s AG G aming G ermany XT R A F RG 24. 2 4.4 x - - - - - G a ma nia D igital E ntertainment C o., L td. G aming T a iwan GT S M 6 180 1 55. 1 1.2 x - 8.4 x - 20 .1x - G a me O n C o L td. G aming J a pan TSE 3 812 89. 6 0.5 x - 1.8 x - 9. 3x - G e oS e ntric O yj Mobile F inland H LS E G E O1V 35. 8 4.8 x - - - - - G iant Intera ctive G roup, Inc. G aming C hina NYS E GA 1,7 10. 8 - - - - 1. 7x 1 2.6 x G iga Media Ltd. G aming T a iwan N as da qG S G IG M 3 33. 6 1.4 x 1.4x 5.6 x 5.7x 10 .6x 9.7x G ravity C o., L td G aming S outh K ore a N as da qG M G R VY 26. 1 - - - - - - G ree, Inc. S ocia l Ne tworking J a pan TSE T S E :3 632 1,2 67. 3 41.2 x - - - - - G u ngH o O nline E ntertainment, Inc. Me dia J a pan OS E 3 765 1 45. 6 1.1 x - 6.3 x - - - H anbitS of t, Inc. G aming S outh K ore a K OS E A 047 080 82. 9 1.3 x - - - - - IAC /InterActiveC orp. Me dia U nite d S tates N as da qG S IAC I 2,3 39. 7 0.4 x 0.4x 9.1 x 3.5x 17 .4x 2 8.5 x IAS E nergy, Inc. V ide o C anada OT C B B IA S C .A 4. 9 - - - - - - IdeaE dge, Inc. S ocia l Ne tworking U nite d S tates OT C B B OT C B B :IDA E 16. 6 - - - - - - is ee media Inc. C ontent C anada T S XV IE E 4. 6 2.5 x - - - - - J umbu ck E ntertainment P ty Ltd. S ocia l Ne tworking A us tralia AS X AS X:J MB 17. 3 1.0 x - 2.6 x - 7. 7x - J umpT V Inc. V ide o C anada TSX T S X:J T V 54. 0 2.9 x - - - - - K a boos e Inc. C ontent C anada TSX TS X:K AB 66. 4 1.1 x 1.0x 11.1 x 6.2x - - K ings oft Co. Ltd. G aming C hina S E HK 3 888 4 48. 9 3.0 x - 7.9 x - 11 .7x - Lingo M edia Corporation Le arning C anada T S XV TS XV :LM 8. 4 2.7 x - - - - - Live World Inc. S ocia l Ne tworking U nite d S tates OT C P K LV W D 2. 5 0.1 x - - - - - LookS mart, Ltd. D irect Marketing U nite d S tates N as da qG M L OOK 20. 3 - - - - - - Magnitu de Information S ys tems Inc. S ocia l Ne tworking U nite d S tates OT C B B MAG Y 4. 4 - - - - - - Mixi, Inc. S ocia l Ne tworking J a pan TSE 2 121 5 89. 1 4.2 x - 10.9 x - 28 .9x - Mode rn Times G roup Mtg AB Me dia S we den OM MT G B 1,2 51. 5 1.1 x 1.1x 6.7 x 8.1x 3. 6x 8.5x Moggle , Inc G aming U nite d S tates OT C B B MMO G 83. 5 - - - - - - MOK O.mobi L imited S ocia l Ne tworking A us tralia AS X MK B 5. 5 4.3 x - - - - - N E OW IZ G ames C orpora tion G aming S outh K ore a K OS E A 095 660 5 06. 3 3.7 x - 13.6 x - 27 .6x - N etD ragon W ebS oft, Inc. G aming C hina S E HK 777 2 83. 7 1.6 x - 3.4 x - 9. 4x - N ete as e.com I nc. G aming C hina N as da qG S NT E S 3,6 14. 0 - - - - 2. 4x 1 5.2 x N eXplore Corpora tion C ontent U nite d S tates OT C P K N XP C 50. 2 - - - - - - N gi G roup Inc. Me dia J a pan TSE 2 497 33. 7 - - - - 10 .1x - N orthgate Te chnologies L imited D irect Marketing India BS E 59 005 7 30. 3 0.2 x - 1.3 x - 2. 0x - Open T e xt Corp. C ollaboration C anada N as da qG S O TE X 1,8 22. 2 2.5 x 2.3x 10.0 x 8.7x 37 .2x 1 4.7 x Openwave S ys tems Inc. Mobile U nite d S tates N as da qG S OP W V 1 11. 6 0.1 x 0.1x - 2.4x - 4 4.7 x P e rf ect W or ld C o., Ltd. G aming C hina N as da qG S PW R D 8 96. 3 - - - - 1. 6x 8.3x P hotoChannel N etwork s Inc. D igital Imaging C anada T S XV T S XV :P N 47. 6 2.9 x 1.9x - 6.0x - 2 2.0 x Qu epa s a C orp. S ocia l Ne tworking U nite d S tates N as da qC M QP S A 11. 7 - - - - - - OA O R B C Information S ys tems Me dia R us s ia R TS R B CI 72. 8 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 3,6 20. 4 0.2 x 1.2x 0.5 x 2.8x 3. 0x 1 7.5 x S hutte rf ly, Inc. D igital Imaging U nite d S tates N as da qG S S FL Y 2 70. 5 0.9 x 0.9x 6.4 x 5.8x 60 .8x - S K C ommunications Co., Ltd. S e arch S outh K ore a K OS E A 066 270 3 15. 4 2.0 x - 21.5 x - - - S N AP Inte ra ctive , Inc. D ating U nite d S tates OT C B B S T VI 7. 6 2.0 x - 6.4 x - 9. 9x - S N M G lobal H oldings Me dia U nite d S tates OT C P K S N MN 0. 0 - - - - - - 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 1,9 05. 8 3.7 x 3.2x 8.8 x 7.4x 12 .3x 1 2.2 x S ite s earch C orporation S ocia l Ne tworking U nite d S tates OT C B B STPC 28. 2 - - - - - - S park N etworks , Inc. S ocia l Ne tworking U nite d S tates AM E X L OV 46. 2 0.8 x - 3.8 x - 11 .1x - S pectrumDN A, Inc. Me dia U nite d S tates OT C B B S P XA 7. 3 - - - - - - T encent Holdings L td. P orta l C hina S E HK 700 14,3 60. 1 14.9 x - 30.4 x - 40 .8x - T he P arent C ompany Me dia U nite d S tates OT C P K K ID S .Q 0. 4 0.2 x - - - - - T he 9 L imited G aming C hina N as da qG S NC TY 3 55. 3 - - - - 1. 1x 9.1x T he S treet.com, Inc. Me dia U nite d S tates N as da qG M TSCM 64. 7 - - - - 68 .3x - T otal S port Online A S Me dia N orway OT C NO T OS O 0. 2 4.6 x - - - - - T r ee.C om, Inc. P orta l U nite d S tates N as da qG M TR E E 54. 9 0.3 x 0.3x - - - - U nis erve C ommu nications Corp. S ocia l Ne tworking C anada T S XV T S XV :U S S 0. 8 0.1 x - 29.5 x - - - U nited Online Inc. Me dia U nite d S tates N as da qG S U N TD 4 40. 3 1.1 x 0.7x 4.9 x 3.1x - 7.4x U OMO Media , Inc Me dia C anada OT C B B U OMO 9. 4 15.4 x - - - - - Va lueC lick Inc. Me dia U nite d S tates N as da qG S VC LK 8 77. 1 1.2 x 1.4x 6.6 x 5.7x - 1 7.0 x VO IS , Inc. S ocia l Ne tworking U nite d S tates OT C B B V OIS 2. 5 - - - - - - W ebze n Inc. G aming S outh K ore a N as da qG M W ZE N 34. 3 - - - - - - W iz za rd S of twa re Corpora tion P odcas ting U nite d S tates AM E X W ZE 32. 5 5.4 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 8. 9 - - - - 3. 3x - W ynds torm C orporation C ontent U nite d S tates OT C B B W YND 3. 1 - - - - - - XIN G AG S ocia l Ne tworking G ermany XT R A O 1B C 1 93. 0 2.9 x - 9.1 x - 20 .1x - Y e dangOnline Corp. G aming S outh K ore a K OS E A 052 770 1 15. 4 2.2 x - 9.9 x - 13 .1x - Y nk K orea Inc. G aming S outh K ore a K OS E A 023 770 10. 1 0.7 x - - - - - ZipLocal Inc. D irectory C anada T S XV T S XV:ZIP 0. 3 0.6 x - - - - - H igh 14,3 60. 1 41.2 x 3.2x 30.4 x 8.8x 68 .3x 4 4.7 x Low 0. 0 - 0.1x 0.1 x 2.4x 1. 1x 7.4x A verage 437. 0 4.2x 1.1x 8.8x 5.9x 15.8x 16.2x Median 34. 0 1.3 x 1.0x 6.7 x 5.9x 10 .9x 1 3.6 x Figure 20. Valuation Comparison Source. Capital IQ
  • 16. Page 16 C omparable C ompany A nalys is > W eb 2.0 Su mmary b y C ountry C om pany Nam e U S D Market Cap ($m) Avg US D Market C ap ($m) U S D LT M T otal R ev ($m) U S D LT M To tal E B IT DA ($m) E B IT DA % U nited S ta tes 41 C hina 27, 195.3 China 3,021. 7 U nited S ta tes 3, 744. 3 C hina 1,654. 1 C hina 48. 4% C a na da 11 U nited S ta tes 4, 726.8 S weden 1,251. 5 C hina 3, 349. 5 S weden 259. 4 Aus tra l ia 37. 2% C hina 9 J a pan 2, 148.8 J a pa n 358. 1 S weden 1, 608. 2 U nited S ta tes 240. 1 T a iwa n 29. 7% S outh K orea 9 C a na da 2, 072.2 Ta iwan 322. 8 C a na da 945. 2 C ana da 186. 1 J a pa n 26. 1% J a pa n 6 S weden 1, 251.5 Ca na da 188. 4 S outh K orea 557. 2 J a pa n 129. 2 I ndia 17. 6% T a iwa n 3 S outh K orea 1, 209.8 Hong K ong 135. 9 J a pa n 490. 8 T a iwa n 85. 6 S weden 16. 1% A ustra lia 2 T a iwa n 968.3 S outh K orea 134. 4 H ong K ong 428. 1 S outh K orea 63. 6 I ta ly 16. 0% G ermany 2 G erma ny 217.2 United S ta tes 115. 3 T a iwa n 348. 6 I ta ly 36. 1 M a la ys ia 13. 3% N orwa y 1 H ong K ong 135.9 G erma ny 108. 6 I ta ly 226. 0 I ndia 23. 8 R uss ia 13. 1% H ong K ong 1 I ta ly 92.6 Ita ly 92. 6 R uss ia 141. 9 H ong K ong 18. 8 S outh K orea 4.7% F inla nd 1 R uss ia 72.8 R us sia 72. 8 I ndia 135. 4 R uss ia 18. 5 H ong K ong 4.4% I ta ly 1 F inland 35.8 Finla nd 35. 8 M ala ys ia 76. 5 G erma ny 11. 7 U nited S ta tes -11.0% U nited K ingdom 1 I ndia 30.3 India 30. 3 G erma ny 51. 9 M a la ys ia 10. 2 G erma ny -14.3% I ndia 1 Aus tra lia 22.8 Ma la ysia 18. 9 Aus tra l ia 14. 1 Aus tra lia 2. 7 C a na da -18.0% S weden 1 M a lays ia 18.9 Austra lia 11. 4 F inla nd 5. 8 N orwa y -1. 0 N orwa y -50.6% R us sia 1 U nited K ingdom 4.3 United K ingdom 4. 3 N orwa y 2. 0 U nited K ingdom -1. 7 U nited K ingdom NA M a la ys ia 1 N orwa y 0.2 Norwa y 0. 2 U nited K ingdom 0. 2 F inla nd -13. 1 F inla nd NA G rand To tal 92 G rand T otal 40, 203.5 G rand To tal 437. 0 G rand T otal 12, 125.7 G rand T otal 2,724. 2 G rand T otal 6.9% Figure 21. Comparison by Country Source. Capital IQ C omparable C ompany A nalys is > W eb 2.0 Su mmary b y Ex c hange C om pany Nam e U S D Market Cap ($m) Avg US D Market C ap ($m) U S D LT M T otal R ev ($m) U S D LT M To tal E B IT DA ($m) E B IT DA % OT C BB 22 N a sda qG S 16, 722.8 S E HK 5,030. 9 OM 1, 608. 2 N asda qG S 1,521. 9 NYS E 61. 9% N a s da qG S 13 S E HK 15, 092.7 NY S E 1,710. 8 N a sda qG S 492. 6 SEHK 598. 0 S E HK 44. 4% OT C P K 9 TSE 2, 003.2 Na s da qG S 1,286. 4 S E HK 417. 9 OM 259. 4 AS X 37. 2% K OS E 7 NYS E 1, 710.8 OM 1,251. 5 NYS E 233. 3 NYSE 144. 4 GT S M 32. 5% TSE 5 OM 1, 251.5 TS E 400. 6 CM 226. 0 TSE 109. 2 TSE 27. 7% N a s da qG M 5 K OS E 1, 149.4 G TS M 317. 3 R TS 141. 9 K OS E 60. 7 N a sda qG S 26. 8% T S XV 5 GT S M 634.7 K OS E 164. 2 BSE 135. 4 GTSM 39. 6 OS E 17. 8% TSX 4 O T CB B 351.8 OS E 145. 6 OS E 112. 1 CM 36. 1 BSE 17. 6% S E HK 3 XT R A 217.2 XT R A 108. 6 N a sda qG M 84. 7 BSE 23. 8 OM 16. 1% A ME X 2 N a sda qG M 200.3 CM 92. 6 GT S M 79. 1 OS E 20. 0 CM 16. 0% XT R A 2 TSX 188.1 RTS 72. 8 K LS E 76. 5 R TS 18. 5 K LS E 13. 3% ASX 2 OS E 145.6 TS X 47. 0 TSE 75. 7 X TR A 11. 7 R TS 13. 1% GTSM 2 O T CP K 105.6 Na s da qG M 40. 1 K OS E 71. 3 K LS E 10. 2 K OS E 6.1% O T C NO 1 CM 92.6 AME X 39. 4 TSX 32. 9 AM E X 6. 3 N a sda qG M -0. 9% H LS E 1 AM E X 78.7 HL S E 35. 8 AM E X 31. 7 AS X 2. 7 XT R A -14.3% NYSE 1 R TS 72.8 BSE 30. 3 XT R A 25. 9 O T CN O -1. 0 TSX -14.8% CM 1 T S XV 61.8 K LS E 18. 9 O T CP K 21. 0 AI M -1. 7 T S XV -15.6% B SE 1 HLS E 35.8 O TC B B 16. 0 T S XV 9. 6 TSX -6. 4 O T CP K -27.9% N a s da qCM 1 BSE 30.3 TS X V 12. 4 AS X 7. 0 T S XV -9. 8 O T CB B -31.8% OS E 1 AS X 22.8 O TC P K 11. 7 HLS E 5. 8 N asda qC M -11. 4 AM E X -38.3% A IM 1 K LS E 18.9 Na s da qCM 11. 7 O T CN O 2. 0 H LS E -13. 1 O T CN O -50.6% OM 1 N a sda qC M 11.7 AS X 11. 4 O T CB B 1. 9 N asda qG M -16. 1 AI M NA R TS 1 AI M 4.3 AIM 4. 3 AI M 0. 2 O T CP K -26. 5 N a sda qC M NA K LS E 1 O T CN O 0.2 O TC NO 0. 2 N a sda qC M 0. 1 O T CB B -52. 5 HLS E NA G rand To tal 92 G rand T otal 40, 203.5 G rand To tal 437. 0 G rand T otal 12, 125.7 G rand T otal 2,724. 2 G rand T otal 6.9% Figure 22. Comparison by Exchange Source. Capital IQ
  • 17. Page 17 Financing - Last Three Months (US$ m) Month Company Name Country Angel/Seed Debt financing PIPE S eries A Series B Series C Series D Series E Grand Total Feb-09 Twitter USA 35.0 35.0 Synthasite South A frica 20.0 20.0 Tremor Media USA 18.0 18.0 Offerpal Media USA 15.0 15.0 Imagini UK 13.5 13.5 Emergent Game Technologies USA 12.5 12.5 Outbrain Israel 12.0 12.0 Tvtrip France 9.0 9.0 Tongxue China 6.0 6.0 Oodle USA 5.6 5.6 TextDigger USA 4.3 4.3 OneSpot USA 4.2 4.2 Mixpo Canada 4.0 4.0 FetchDog USA 4.0 4.0 Virtual Fairground Netherlands 4.0 4.0 7 Billion People USA 3.0 3.0 FamilyLink.com USA 2.9 2.9 WhistleBox USA 2.3 2.3 Mendeley UK 2.0 2.0 Outright USA 2.0 2.0 Tvinci Israel 1.6 1.6 Filtrbox USA 1.4 1.4 MMO Life Netherlands 1.3 1.3 Cake Financial USA 1.3 1.3 fav.or.it UK 0.7 0.7 Feb-09 Total 13.3 24 .8 76.4 58.6 12.5 185.5 Mar-09 Vidyo USA 15.0 15.0 Buzznet USA 12.5 12.5 LendingClub USA 12.0 12.0 SendMe Inc. USA 12.0 12.0 Auditude USA 10.5 10.5 Glam Media U SA 10.0 10.0 Visible Measures U SA 10.0 10.0 Greystripe USA 5.5 5.5 OMGP OP USA 5.0 5.0 Apture USA 4.1 4.1 Simulmedia USA 4.0 4.0 Tynt Canada 3.9 3.9 AnySource Media USA 3.2 3.2 Pixazza U SA 3.1 3.1 Sports Composite DE USA 2.0 2.0 Hunch USA 2.0 2.0 Bit.ly U SA 2.0 2.0 AdultSpace USA 1.3 1.3 Myngle Netherlands 1.3 1.3 33Across USA 0.8 0.8 Three Melons Argentina 0.6 0.6 Mar-09 Total 1.3 1.3 0.6 32 .3 30.3 43.0 12.0 10.0 130.7 Apr-09 Collective Media USA 20.0 20.0 The Rubicon Project USA 8.0 5.0 13.0 Cellufun USA 10.0 10.0 ScanScout USA 8.1 8.1 DoubleTwist USA 5.0 5.0 Socialtext USA 4.5 4.5 TubeMogul USA 3.0 3.0 Socialcast USA 1.4 1.4 Scan & Target France 1.3 1.3 Apr-09 Total 9.4 8.0 4.4 40.0 4.5 66.3 Figure 23. Financing, Last Three Months Source. Company reports
  • 18. Page 18 C ompany Des c riptio ns - C urrent Mo nth C apital Market A c tivity C ompany HQ W ebs ite Des criptio n C ellu fun , LL C U nited S ta tes www. cellufun. com C ellufun, LL C opera tes as a n ad s ponso red mobile ga ming portal. The company’ s portal provides free enterta inment content, a s well a s cas ua l, connected, a nd multiplay er games for ex isting a nd next-generation W eb-ena bled mobile phones . It a l so offers free s ingle-pla yer games, a s well as multi-player vers ions on a s ubs cription ba s is . The c ompany ena bles subs cribers to persona liz e their ga ming profile; sa ve scores ; crea te tea ms; partic ipa te in tournaments ; a nd sha re informa tion rela ted to tips , trick s, a nd bra gging rights . C ellufun wa s founded in 2005 and is bas ed in New Y ork, N ew Y ork. C ollec tive Media, Inc . U nited S ta tes www. collective-media . com C ollective Media , I nc. opera tes a s a n online a dvertising network tha t specializ es in audienc e ta rgeting a nd optimiz ation s olutions for publishers a nd a dvertis ers in the United S ta tes. I t provides con text, beha v ior, re-ta rgeting, demogra phic, a nd geogra phic ta rgeting; a nd dashboard, a reporting interfac e that pres ents a nd ma nipula tes ad performa nce da ta generated by ca mpa igns. T he compa ny a ls o offers a network of online news s ites , a s well as enterta inment, s ports , a nd health si tes . In addition, it provides bra nd a dvertis ing a nd direct ma rketing services . T he company wa s founded in 2005 a nd is bas ed in N ew Y ork, New Y ork . do ubleT wis t Corpo ration U nited S ta tes www. doubletwis t. com doubleTwist C orpora tion des igns a nd develops entertai nment s oftwa re a pplica tions . T he company applica tions s hares a nd s y nchroniz es pictures , video, and audio to medi a dev ices . I t offers doubleT wis t desk top, a n a pplica tion tha t ena bles c lients to tra ns fer, sha re, a nd sy nc persona l media ; a nd Twis t me! , a network applica tion tha t a llows us ers to share photos, video, and audio files from the c lient’s profile pages. doubleTwist C orpora tion wa s founded in 2007 a nd is ba s ed in S an F ra nc isco, Ca li fornia with an a dditiona l office in O s lo, Norway. S c an & Target F rance www. s cana ndta rget. c om S ca n & Target provides a S a a S s olution for the rea l-time analy s is of tex t us er genera ted conten t (UG C ). S ca n & Target s olutions a re a imed a t publis hers of community a nd s ocia l network s, moderation s ervice pro viders , providers of tec hnica l s olutions for Web 2. 0 (forums , blogs , cha t, s ocial buying, etc.) a nd profes siona l s ervices (C R M and conta ct centers). S c anS co ut, In c. U nited S ta tes www. s cans cout. com S ca nS cout, Inc. opera tes as a n online video advertising network. I t s erves publis hers , advertise rs , a nd ad network s . The company was founded in 2005 a nd is ba s ed in B oston, M ass a chus etts with additiona l offic es in New Y ork a nd L os Angeles . S ocialcas t U nited S ta tes www. s ocialca st. com S oci a lcas t provides soc ial network ing pla tforms a nd s olutions for both consumer-fa cing clients and enterpris e cus tomers . The compa ny wa s founded in 2005 a nd is ba s ed in Irv ine, C al ifornia . S ocialtext In corporated U nited S ta tes www. s ocialtext.com S oci a ltext Inc orpora ted develops enterpris e s oc ia l s oftware. T he company focus es on offering c olla bora tion platform tha t a llows organizations to c ollaborate. It offers P eople, whic h ena bles users to integra te s oc ial network ing with enterprise colla bora tion; W eblog tha t supports colla bora tiv e a nd ongoing conv ersa tions a mong collea gues ; W orks pa c e, an enterpris e wiki for sea rc hing informa tion and people; a nd S ig na ls tha t a mplifies, cla rifies, and complements other c ollabora tion ac tiv ities , a s well a s prov ides a medium for information s ha ring. The c ompa ny a ls o provides D ashboa rd, which aggrega tes content from S oc ialtex t wik i pa ges , the W eb, a nd enterprise sy stems; an d S oci a lC alc s preadsheets tha t inc lude informa tion from other sprea ds heets or works pace pa ges . The compa ny wa s founded in 2002 a nd is based in P a lo Alto, C a lifornia . R ubicon P roject, Inc . U nited S ta tes www. rubiconproject.com R ubic on P roject, I nc. , an a dv ertis ing technology c ompa ny , provides online a dv ertis ing solutions to W eb publishers a nd a d networks . I t also offers a d network optimiz a tion serv ices , a s well a s ad qua lity protection progra ms . In a ddition, the company prov ides solutions to s top unwa nted a ds in tra ck s by protecting W eb publis hers. T he compa ny was founded in 1998 a nd is ba sed in Los Angeles, Ca lifornia. T ubeMogul, Inc. U nited S ta tes www. tubemogul. c om TubeM ogul, I nc. opera tes as a n online video ana lytics a nd dis tribution company worldwide. It focuses on prov iding v ideo publis hing tools . The c ompa ny provides a single point for deploy ing uploads to the video s haring s ites , a nd a nalytics on who, wha t, a nd how v ideos are being viewed. It serv es content produc ers, media companies , a d a ge ncies , digita l consulta nts, record la be ls, film s tudios , politicians , c onsumer products orga niz a tions , and corporations. The compa ny wa s founded in 2006 a nd is ba sed in B erkeley , C alifornia. Figure 24. Company Descriptions Source. Company reports, Capital IQ, Crunchbase
  • 19. Page 19 RELEVANT DISCLOSURES APPLICABLE TO: NONE LIST OF DISCLOSURE TERMS: 1. None applicable. 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