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09-04-21 Web 2.0 Weekly
 

09-04-21 Web 2.0 Weekly

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Financing activity continued to ramp up in April after a slow start to the month. Total financings (month-to-date) jumped to $92.2 million (this week) from $66.3 million (last week) – a significant ...

Financing activity continued to ramp up in April after a slow start to the month. Total financings (month-to-date) jumped to $92.2 million (this week) from $66.3 million (last week) – a significant +40%. As of last week, a total of 12 deals closed, with a $16 million raise by GOOM Radio being a major contributor. A total of four deals greater than $10 million each helped the overall statistics. Social Networking company DigitalTown Inc. (DGTW-OTCBB) was the top price performer for the week, returning 20%, closely followed by Kingsoft Co. Ltd. (3888-EHK) at 17.6%. The9 Ltd. (NCTY-NasdaqGS) had the worst return, dropping 27.6% in the week after news of its losing the license to operate World of Warcraft in China. Of the 34 companies (with stock price greater than $1), 10 companies on our list had price performances greater than +10%. Only one company returned more than
20%.

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    09-04-21 Web 2.0 Weekly 09-04-21 Web 2.0 Weekly Document Transcript

    • SOFTWARE & SERVICES 21 APRIL 2009 DAVID SHORE, CFA, MBA 416.860.6784 WEB 2.O WEEKLY david.shore@researchcapital.com Arun Thomas (Associate) 416.860.7666 MEDIA COMPANY (GOO M RADIO) TOP DESTINATIO N FOR CAPITAL IN THIRD WEEK OF APRIL ACT I VIT Y H UM S AL O N G I N W E EK T H R E E OF A PR I L Total financings (month-to-date) jumped to $92.2 million (this week) from $66.3 million (last week) – a significant 40%. As of last week, a total of 12 deals closed, with a $16 million raise by GOOM Radio being a major contributor. A total of four deals greater than $10 million each helped the overall statistics. It appears, from comparing the total number of capital raises (so far) in April, that the month may likely finish of at or slightly below March levels, unless the balance of the month witnesses a sudden jump in the number of transactions or a few high dollar financings. This may be an indication that Venture Capitalists (VC) are being more cautious with deployment of capital in a recessionary environment. According to The W all Street Journal (18-April-2009), VC activity has dropped to levels not seen since 1996. The journal goes on to state that pension funds, endowments, and foundations that traditionally have funded VCs are reluctant to commit money since these institutions are seeing a significant drop in values of the public and private investments. Financing Activity Last Three Months 200.0 7.6 180.0 7.4 160.0 7.2 140.0 7.0 120.0 (US$m) (US$m) 100.0 6.8 80.0 6.6 60.0 6.4 40.0 6.2 20.0 0.0 6.0 Feb-09 Mar-09 Apr-09 Total Average Capital Market Activity: Three weeks into April and we saw 12 companies raising money, with GOOM Radio and Collective Media raising $16 million and $20 million, respectively. The month-to-date total of total capital raised stands at $92.2 million. The Rubicon Project (ad network sector) and Cellufun (gaming sector) followed GOOM Radio, raising $13 million and $10 million, respectively. Price Performance: Social Networking company DigitalTown Inc. (DGTW -OTCBB) was the top price performer for the week, returning 20%, closely followed by Kingsoft Co. Ltd. (3888-SEHK) at 17.6%. The9 Ltd. (NCTY-NasdaqGS) had the worst return, dropping 27.6% in the week after news of its losing the license to operate W orld of W arcraft in China. Of the 34 companies (with stock price greater than $1), 10 companies on our list had price performances greater than +10%. Only one company 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
    • 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 ~$431 million (but a median of only $45.5 million), with average trailing revenue of $145 million (median $52 million). The companies are also generally profitable, with a median EBITDA margin of 17.6%. On a valuation basis, the overall average is 4.7x trailing revenue (median 1.1x) and 8.9x trailing EBITDA (median 7.1x). Thirteen of the companies have more than 500 employees. C omparable C o mpany A nalys is > W eb 2.0 Trading Current U S D Market U S D LT M To tal US D L TM T otal E BITDA TE V/LT M T E V/LT M C om pan y Nam e L TM as of T icker E xc hange Cu rrency H Q P rice C ap ($m) R ev ($m) E B ITDA ($m) % R evenu e 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 USD U nited S ta tes 0 .49 1 3.4 3.8 (4 .8) NM 4.7 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, 700 9 4.0 70. 1 1 4.0 20 .0% 0.9 x 4.7x NA AQ Inte ractive , Inc. 1 2/31 /200 8 38 38 TSE JPY J apan 48 ,000 .00 2 6.5 61. 3 4 .9 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 8.1 x - 3 B igstring Co rp. 1 2/31 /200 8 BS GC OT C B B USD U nited S ta tes 0 .01 0 .7 0.1 (2 .1) NM 23.6 x - 4 B e tawave Corpora tion 1 2/31 /200 8 B W AV OT C B B USD U nited S ta tes 0 4 .1 7.7 (1 1.8) NM - - 45 B e yo nd Commerce, In c. 1 2/31 /200 8 B Y OC OT C B B USD U nited S ta tes 1 .50 6 2.0 1.8 (8 .6) NM 35.7 x - 43 B right T hings plc 9 /30 /200 8 AIM:B G T AIM GBP U nited K ingdom 0 5 .0 0.2 (1 .6) NM 20.6 x - 3 ,12 5 B roa dW ebAs ia Inc. 9 /30 /200 8 BW BA OT C P K USD U nited S ta tes 0 .45 3 8.2 0.0 (4 .6) NM - - 37 C DC C orp. 9 /30 /200 8 C HIN .A N as da qG S USD H ong K on g 1 15 1.0 428 .1 1 8.8 4 .4% 0.5 x 1 1.0 x NA C hina G ate wa y C orpo ra tion 9 /30 /200 8 C GW Y OT C B B USD U nited S ta tes 0 .00 0 .0 6.7 (6 .6) -9 8.9% 6.0 x - NA C hine s e G amer International 1 2/31 /200 8 G T S M:308 3 GTSM TWD T aiwan 188 47 1.1 46. 1 2 3.3 50 .5% 1.1 x 1 2.9 x NA C ornerW orld C orporation 1 /31 /200 9 C WR L OT C B B USD U nited S ta tes 0 .10 6 .4 1.3 NM NM 0.7 x 4.2x 574 C yberplex Inc. 1 2/31 /200 8 T S X:C X TSX C AD C ana da 1 5 2.2 46. 4 3 .9 8 .4% 0.5 x 3.9x NA DADA S pA 9 /30 /200 8 C M:D A CM EUR Ita ly 4 .99 10 4.4 219 .0 3 5.0 16 .0% - - NA DXN Holdings B hd 1 1/30 /200 8 DXN KLSE MY R Ma la ys ia 0 1 9.8 76. 5 1 0.2 13 .3% 5.0 x - 11 Dibz Inte rnational, Inc. NA DIB Z OT C P K USD U nited S ta tes 0 .00 0 .0 NA NM NM - - 3 DigitalP ost Inte ra ctive , Inc. 9 /30 /200 8 DG LP OT C B B USD U nited S ta tes 0 1 .1 0.4 (3 .3) NM - - 6 DigitalT own, In c. 1 1/30 /200 8 DG T W OT C B B USD U nited S ta tes 3 .00 8 1.2 NM (2 .5) NM 1.2 x - NA Dolphin D igital Me dia, Inc. NA DP DM OT C B B USD U nited S ta tes 1 2 6.6 NA NM NM - - 2 E o lith C o. L td. 1 2/31 /200 7 A0 410 60 K OS E KR W S outh K orea 625 .00 2 1.9 18. 8 (0 .1) -0 .3% - - 22 E xte ns ions , Inc. 9 /30 /200 8 E XT I OT C P K USD U nited S ta tes 0 1 4.2 NM NM NM 0.0 x - 29 F inancia l Media G roup, Inc. 1 1/30 /200 8 F NG P OT C B B USD U nited S ta tes 0 .01 0 .4 6.8 1 .2 18 .3% 4.8 x - NA F luid Mus ic Ca nada, In c. 9 /30 /200 8 T S X:F MN TSX C AD U nited S ta tes 0 1 4.9 4.2 (8 .6) NM 1.1 x 7.7x NA F rogs te r Interactive P ictu re s AG 6 /30 /200 8 FRG XT R A EUR G ermany 8 .35 2 5.4 5.2 (3 .1) -6 0.6% 0.5 x 1.8x NA G a ma nia Digital E ntertainmen t C o., L td. 1 2/31 /200 8 61 80 GTSM TWD T aiwan 32 14 3.2 111 .4 1 6.1 14 .5% 6.9 x - 94 G a me On C o L td. 1 2/31 /200 8 38 12 TSE JPY J apan 93 ,800 .00 9 2.2 75. 8 1 9.6 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 4 6.3 5.7 (1 2.7) NM 1.5 x 6.4x NA G ian t Intera ctive G roup, Inc. 1 2/31 /200 8 GA NYS E USD C hina 7 .60 1,7 17.6 233 .2 14 4.4 61 .9% - - 636 G iga Media Ltd. 1 2/31 /200 8 G IG M N as da qG S USD T aiwan 7 36 8.5 190 .4 4 6.0 24 .2% 39.5 x - NA G ravity C o., L td 9 /30 /200 8 GR VY N as da qG M USD S outh K orea 0 .98 2 7.2 36. 8 7 .1 19 .2% 1.1 x 6.0x NA G ree, Inc. 6 /30 /200 8 T S E : 363 2 TSE JPY J apan 5, 480 1,2 42.7 29. 9 1 0.7 36 .0% 1.0 x - NA G u ngH o O nline E ntertainment, Inc. 1 2/31 /200 8 37 65 OS E JPY J apan 122 ,300 .00 14 2.4 114 .3 2 0.4 17 .8% 0.4 x 8.2x 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 4, 160 6 8.5 52. 2 (1 4.7) -2 8.2% - - NA IAC /InterActiveC orp. 1 2/31 /200 8 IAC I N as da qG S USD U nited S ta tes 16 .19 2,2 81.9 1 ,44 5.1 6 4.6 4 .5% - - NA IAS E n ergy, Inc. 1 /31 /200 9 IAS C.A OT C B B USD C ana da 0 1 7.2 0.0 (0 .8) NM 2.1 x - NA IdeaE dge, Inc. 1 2/31 /200 8 OT C B B :ID AE OT C B B USD U nited S ta tes 0 .30 1 2.8 0.0 (4 .6) NM 1.0 x 2.8x 72 is ee media Inc. 1 2/31 /200 8 IE E T S XV C AD C ana da 0 4 .2 1.2 (4 .8) NM 2.6 x - 237 J umbuck E ntertainment P ty Ltd. 1 2/31 /200 8 AS X:J MB AS X AU D Aus tra lia 0 .50 1 7.4 12. 6 4 .7 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 1 5 0.7 13. 4 (8 .4) -6 2.6% 3.8 x 9.8x 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 5.9 66. 4 6 .6 9 .9% 3.0 x - NA K ings oft Co. Ltd. 1 2/31 /200 8 38 88 S E HK HKD C hina 4 52 8.4 120 .1 4 6.3 38 .5% 0.2 x - NA Lin go M edia Corporation 9 /30 /200 8 T S XV : LM T S XV C AD C ana da 0 .89 9 .3 3.3 (1 .4) -4 2.5% - - 90 Live Wo rld Inc. 1 2/31 /200 8 LV WD OT C P K USD U nited S ta tes 0 3 .1 11. 8 (0 .5) -4 .3% - - 13 Lo okS mart, Ltd. 1 2/31 /200 8 LOOK N as da qG M USD U nited S ta tes 1 .13 1 9.3 65. 0 (2 .0) -3 .1% 4.7 x 1 2.4 x NA Magnitu de Information S ys tems Inc. 9 /30 /200 8 MA G Y OT C B B USD U nited S ta tes 0 6 .5 0.1 (3 .2) NM 1.1 x 7.1x 2 ,96 9 Mixi, In c. 1 2/31 /200 8 21 21 TSE JPY J apan 427 ,000 .00 66 6.3 119 .3 4 5.4 38 .0% - - 3 Mode rn Times G rou p Mtg AB 1 2/31 /200 8 MT G B OM S EK S weden 166 1,2 63.1 1 ,52 0.5 24 5.3 16 .1% 4.0 x - NA Moggle , Inc 1 2/31 /200 8 MMOG OT C B B USD U nited S ta tes 2 .30 8 3.5 NM (1 .1) NM 2.9 x 1 0.8 x NA MOK O.mobi L imited 1 2/31 /200 8 MK B AS X AU D Aus tra lia 0 5 .0 1.0 (2 .1) NM 2.0 x 4.4x 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 55 ,600 .00 40 1.9 135 .5 3 6.4 26 .9% - - NA N etD rago n W ebS oft, Inc. 1 2/31 /200 8 77 7 S E HK HKD C hina 5 31 9.2 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 USD C hina 28 .92 3,5 58.7 451 .1 29 3.3 65 .0% - - NA N eXplo re Co rpora tion 9 /30 /200 7 N XP C OT C P K USD U nited S ta tes 1 3 9.0 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 30 ,500 .00 3 8.3 100 .0 3 0.8 30 .8% 2.5 x 1 0.0 x 3 ,40 0 N orthgate Te chno lo gies L imited 1 2/31 /200 8 59 005 7 BS E INR India 43 2 9.8 134 .1 2 3.6 17 .6% 0.1 x - 627 Open T e xt Corp. 1 2/31 /200 8 OT E X N as da qG S USD C ana da 35 .13 1,8 23.2 769 .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 USD U nited S ta tes 1 10 0.8 199 .6 (1 0.2) -5 .1% 2.7 x - NA P e rf ect W orld C o., Ltd. 1 2/31 /200 8 PW R D N as da qG S USD C hina 15 .93 84 0.4 210 .2 11 3.7 54 .1% - - 74 P h otoChann el N etwork s Inc. 1 2/31 /200 8 T S XV : P N T S XV C AD C ana da 2 4 5.5 16. 2 (0 .8) -4 .9% 0.0 x 0.1x NA Qu epa s a C orp. 1 2/31 /200 8 QP S A N as da qC M USD U nited S ta tes 0 .72 9 .2 0.1 (1 1.4) NM 0.1 x 0.2x NA OA O R B C Information S ys tems 1 2/31 /200 7 R BCI R TS USD R us s ia 1 6 9.4 139 .7 1 8.2 13 .1% 0.8 x 6.2x 514 S h anda In teractive E ntertainme nt L td. 1 2/31 /200 8 S N DA N as da qG S USD C hina 44 .46 3,0 84.8 522 .0 23 9.8 46 .0% 1.8 x 1 9.1 x NA S h utte rf ly, In c. 1 2/31 /200 8 S F LY N as da qG S USD U nited S ta tes 11 26 4.5 213 .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 9 ,090 .00 28 0.9 155 .8 1 4.7 9 .4% 1.1 x - 33 S N AP Inte ra ctive , Inc. 1 2/31 /200 8 S T VI OT C B B USD U nited S ta tes 1 7 .6 3.0 0 .9 31 .4% 0.0 x - NA 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 .00 0 .0 2.0 (0 .7) -3 4.8% 3.4 x 8.1x 3 ,19 7 S o cia l Media V e nures , In c. 1 2/31 /200 8 S MV I OT C P K USD U nited S ta tes 0 0 .0 0.1 (0 .1) -6 0.5% - - 15 S o hu. com Inc. 1 2/31 /200 8 S OH U N as da qG S USD C hina 46 .43 1,7 69.7 429 .1 18 0.5 42 .1% 0.8 x 3.9x 183 S ite s earch C orpo ration 1 /31 /200 9 S T PC OT C B B USD U nited S ta tes 3 2 8.2 NM (1 .1) NM - - 7 S park N etworks , Inc. 1 2/31 /200 8 LOV AME X USD U nited S ta tes 2 .35 4 8.3 57. 3 1 2.3 21 .5% 15.4 x 3 1.4 x 6 ,19 4 S pectrumDN A, Inc. 1 2/31 /200 8 S P XA OT C B B USD U nited S ta tes 0 1 0.2 0.1 (2 .5) NM 0.2 x - 347 T encent Holdin gs L td. 1 2/31 /200 8 70 0 S E HK HKD C hina 63 .90 14,8 48. 6 1 ,04 6.3 51 1.7 48 .9% - - NA T he P aren t C ompan y 8/2/2008 K IDS .Q OT C P K USD U nited S ta tes 0 0 .5 112 .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 USD C hina 9 .59 25 7.2 249 .8 8 4.1 33 .7% 4.6 x - 16 T he S treet.com, Inc. 1 2/31 /200 8 TSCM N as da qG M USD U nited S ta tes 2 6 9.0 71. 9 7 .0 9 .7% 0.3 x - 700 T otal S po rt Online 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, Inc. 1 2/31 /200 8 TR EE N as da qG M USD U nited S ta tes 6 5 6.7 228 .6 (2 3.9) -1 0.4% 1.0 x 4.5x 1 ,46 9 U nis erve C ommu nication s Co rp. 1 1/30 /200 8 T S XV : US S T S XV C AD C ana da 0 .04 0 .8 24. 2 0 .1 0 .4% 11.3 x - NA U nited Online Inc. 1 2/31 /200 8 U NT D N as da qG S USD U nited S ta tes 5 39 1.0 669 .4 15 3.9 23 .0% 1.1 x 6.0x 1 ,18 9 U OMO Media , Inc 1 /31 /200 9 U OMO OT C B B USD C ana da 0 .08 6 .9 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 USD U nited S ta tes 9 80 5.1 625 .8 11 3.6 18 .2% - - NA V O IS , Inc. 1 2/31 /200 8 V OIS OT C B B USD U nited S ta tes 0 .30 2 .5 0.0 (1 .3) NM 4.5 x - 110 W ebze n Inc. 1 2/31 /200 8 W ZE N N as da qG M USD S outh K orea 3 3 1.2 21. 4 (4 .2) -1 9.8% - - NA W izza rd S of twa re Corpora tion 1 2/31 /200 8 W ZE AME X USD U nited S ta tes 0 .57 2 6.8 6.1 (6 .0) -9 8.2% - - 1 W oo zyF ly, Inc. 1 2/31 /200 8 W ZY F OT C B B USD U nited S ta tes 0 2 .6 NM NM NM - - NA W orlds .com In c. 9 /30 /200 8 W DD D OT C B B USD U nited S ta tes 0 .17 8 .9 0.1 NM NM 2.7 x 8.5x 174 W ynds torm C orporatio n NA W YND OT C B B USD U nited S ta tes 0 1 .6 NA NM NM 2.2 x 9.6x NA XIN G AG 1 2/31 /200 8 O1B C XT R A EUR G ermany 27 .00 17 8.7 45. 1 1 4.4 32 .0% 0.6 x - NA Y e dangOnline Co rp. 1 2/31 /200 7 A0 527 70 K OS E KR W S outh K orea 9, 510 11 1.8 51. 5 1 1.5 22 .4% 0.6 x - NA Y n k K orea Inc. 1 2/31 /200 7 A0 237 70 K OS E KR W S outh K orea 4 ,440 .00 8 .2 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 0 .3 2.6 (2 .8) NM 39.5 x 3 1.4 x 2 0,22 2 H igh 14,8 48. 6 1 ,520 .5 51 1.7 65 .0% 39.5 x 3 1.4 x 20 ,22 2 Lo w 0 .0 0.0 -23.9 -9 8.9% - - 0 A vera ge 431.5 145 .0 31.9 6 .9% 4.7x 8 .9x 1,074 Median 4 5.5 52. 2 1 .2 17 .6% 1.1 x 7.1x 179 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 ) Is April levelling off? Last week closed with 12 financings (month-to-date April) totalling $92.2 million. The month of April (so far) has registered four deals greater than or equal to $10 million and two deals 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 $15 million in January. Financing Activity Last Three Months 200.0 7.6 180.0 7.4 160.0 7.2 140.0 7.0 120.0 (US$m) (US$m) 100.0 6.8 80.0 6.6 60.0 6.4 40.0 6.2 20.0 0.0 6.0 Feb-09 Mar-09 Apr-09 Total Average Figure 2. Financings, Last Three Months Source. Company reports Collective Media largest deal in April: Three weeks into April and Collective Media tops the list with a $20 million raise, followed by Goom Radio and The Rubicon Project with $16 million and $13 million, respectively (Figure 3). For additional details, see Figures 23 and 24 (at end of note).
    • (US$m) 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 Twitter Kaixin001.com Collective Media Source. Company reports Synthasite Tremor Media GOOM Radio Vidyo Offerpal Media Imagini The Rubicon Project Buzznet Figure 3. Capital Market Activity, Last Three Months Emergent Game Outbrain LendingClub companies raising $63.4 million. SendMe Inc. Miva Auditude Cellufun Glam Media Visible Measures SuperSecret Tvtrip GoViral ScanScout Tongxue Oodle Greystripe Wamba DoubleTwist OMGPOP Socialtext TextDigger OneSpot Mixercast Apture Simulmedia Mixpo FetchDog Virtual Fairground Tynt SoundCloud AnySource Media Pixazza 7 Billion People Financing Summary - Last Three Months TubeMogul FamilyLink.com Tribal Nova WhistleBox Sports Composite DE Outright Hunch Bit.ly Mendeley Tvinci Socialcast Filtrbox Scan & Target AdultSpace MMO Life Cake Financial Myngle 33Across fav.or.it Three Melons Apr-09 Mar-09 Feb-09 Page 4 sector, with 12 companies raising over $74.4 million (Figure 4). The video sector has the next highest totals, with eight Social Networks is the most active sector: Activity over the last three months was busiest in the Social Networks
    • Page 5 Capital Market Activity by Sector - Last Three Months 80.0 70.0 60.0 50.0 (US$m) 40.0 74.4 63.4 30.0 49.9 41.9 41.4 20.0 37.0 22.5 20.0 10.0 16.0 15.0 12.0 12.0 9.0 6.5 5.5 4.3 4.1 4.1 3.9 3.1 2.0 2.0 1.4 1.3 1.3 0.0 Comment/Reputation Gaming Visual Commerce Wiki Travel Media Microblog Mobile Publishing Online Learning Financial Services Widget Lending Mobile Ad Search Infrastructure Social Networks Virtual Goods SAS Video Aggregation Virtual World Crowdsourced Ad Network Analytics Content # companies 12 8 6 5 7 2 4 1 3 1 1 1 1 2 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) essentially mirrored the performance of the NASDAQ composite index from mid 2008 until recently when it has moved higher than the NASDAQ index (Figure 5).
    • Page 6 Web 2.0 Index Price Performance 140 120 100 80 60 40 20 0 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 4/6/2009 4/20/2009 ^COMP - Share Pricing Index: Web 2.0 X (Market Cap) 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 19 companies showing positive returns on the week. DigitalTown Inc. (DGTW -OTCBB) led the group with a 20% return over the past week. The9 Ltd. (NCTY-NasdaqGS) had the worst return, dropping 27.6% in the week after news of its losing the license to operate W orld of W arcraft in China.
    • Page 7 1 Week P rice P erformance DigitalTow n, Inc. 20.0% K ings of t Co. Ltd. 17.6% B ey ond Commerce, Inc. 17.2% DA DA S pA 16.3% NetDragon WebS oft, Inc. 12.5% Ngi G roup Inc. 11.3% A Q Interac tive, Inc. 11.1% CDC Corp. 11.1% 10.9% Mix i, Inc. G igaMedia Ltd. 10.4% Frogs ter Interac tive Pictures A G 8.2% Modern Times G roup Mtg A B 6.8% TheS treet. com, Inc. 6.6% S park Netw orks , Inc. 4.4% Tencent Holdings Ltd. 3.4% Tree.Com, Inc. 3.3% G ameOn Co Ltd. 0.9% G iant Interactive G roup, Inc. 0.4% Open Tex t Corp. 0.1% Cy berplex Inc. 0.0% Neteas e.c om Inc. -1.5% S hutterf ly , Inc. -2.2% IA C/InterA ctiveCorp. -2.5% PhotoChannel Netw orks Inc. -3.5% G ree, Inc. -3.9% X ING A G -4.5% LookS mart, Ltd. -5.0% Perf ect World Co., Ltd. -6.2% S ohu.com Inc. -7.1% Webz en Inc. -8.0% V alueClick Inc. -8.2% Openw ave S y s tems Inc. -9.7% United Online Inc. -11.2% S handa Interactive -14.8% The9 Limited -27.6% -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 B lizz a rd E ntertainment to P artner with N etea se in B lizz a rd E nterta i nment I nc. and N eteas e. com I nc . a nnounced that B lizz ard E ntertainment(R )'s W orld of W arcraft(R ) will be lic ens ed to an B lizzard E n tertainment, Inc . ; Ma inland China on W orld of W a rcraft(R ) a ffilia ted c ompa ny of NetE a se. com Inc. in mainl a nd C hina for a te rm of 3 y ears following the expira tion of the current l icens e agreement. Neteas e. com Inc. (Nas daqG S : NT E S ) B oth companies a nnounc ed a pa rtnership on B lizz a rd E nterta inment's W a rcraft(R ) I I I, S tarCra ft(R ) II , a nd B attle.net(R ) gaming pla tform last summer. Announce ment furth er enha nc es the pa rtnership between B li zza rd E nterta inment and NetE as e a nd promotes a cons is tent lev el of quality a nd serv ic e in ma i nland C hina for a ll B liz zard E ntertainment games involv ed in the partnership. T he Dis trict C ourt Atta ches As sets of O AO R B C T he Dis tric t C ourt of the city N icos ia ha s su stained the claim of B a nk of Mos cow to attach a s sets of O AO R B C Information S ys tems E DI S PR E S S Holdin g; OAO R BC Information S ys tems (R TS : R B C I); R BC Informa tion S ys tems , E D I S P R E S S Holding, R B C registered in Cy prus , including E D I S P R E S S Holding, R B C I nves tments (Cy prus) L td. a nd Ad Net Ltd. T his attac hment is an i nterloc utory Inv estments (C yprus ) Ltd. a nd Ad Net L td injunction on the lawsuit filed by B a nk of M oscow against the media holding in M a rch 2009 to the L ondon C ourt of I nternational Arbitration. Inves tments (Cyprus ) L td. B a nk of Mos cow is a la rge holder of CL N is s ued by R B C Inves tments in D ecember 2007 agains t a credit of B a rclay s Ca pital B a nk for th e sum o f $45 million (E UR 33. 54 million). T he pa per ma tured in Nov ember 2008. O pen T ext and E ndeca P artner to Deliv er U nprecedented E ndeca Technologies I nc . a nd O pen Tex t Corp. a nnounced a formalized partners hip to deliver E ndeca's D igita l As set Na viga tor solution on E ndec a T ec hn olog ies , Inc.; Open Text Digita l Ass et R eus e O pen T ext D igital Media G roup's E nterprise Media Ma na gement S olution. T he joint offering is designed to provide media , publis hing and C orp. (Nas daqG S : OTE X) retail orga nizations with a n unprecedented a bility to cut cos ts and s treamline operations b y reusing exis ting digita l a s sets , suc h as audio, video, a nd images that a re s tored in hous e instea d of recreating or purc ha sing new ass ets . F inancia l Media G roup, Inc . a nnounc ed dela y ed 10-Q O n 04/14/2009, F ina nc ia l M edia G roup , Inc. announced tha t they will be una ble to file their nex t 10-Q by the deadline required by th e S E C . F inanc ial Media G roup, Inc . filing (OT CB B: F N G P) P a rty G aming E yeing G igamedia P a rty G a mi ng P lc is reportedly in ta lk s with G iga media Ltd. for a poss ible merger or takeover o f E veres t P ok er bra nd. G igamedia , which has G igaMedia L td. (Nas daqG S : G IG M); a ma rket value of $363 million, is believed to ha ve a ppointed G oldma n S a chs to look for a buyer for the whole company or simply its E v erest P artyG amin g Plc (L S E : PR TY) poker brand. P arty G a ming is among a s mall number of parties thought to be negotiating with G iga media. O ne potential ba rri er to a full merger coul d be the unwillingnes s of G iga media sha reholders to hold s toc k in a L ondon-li sted c ompa ny. A P arty G aming s pokes man s aid: quot;W e hav e ma de it very clea r we believe the industry will c onsolidate a nd we will look a t opportunities as a nd when they a ris e.quot; G igamedia told inves tors la st month it wa s quot;in discus sions with s everal interes ted parties concerning the poss ibility of a strategic merger or a sal equot;. J umpT V U nveils P remier L atin O nline T elevisi on S erv ice J umpTV I nc. annou nced the launc h of J umpTV L atino, a n online destination for L atin America n telev ision with prominent new features . J u mpTV Inc . (TS X : J TV) J umpTV L atino is a s ubscription-ba sed service that provides the la rgest s election of live and on-demand L atin Americ an televis ion channels a va ila ble via the I nternet, providing viewer's one c entra l pla ce to a ccess L atino enterta inment. T he onli ne des tina tion continues to s erve exis ting JumpT V s ubs cribers and offers a key hot spot for new v iewers with a sleek new look and feel, enha nc ed video ex perience a nd improved c us tomer s upport. J umpT V La tino is a dua l language destination tha t features up to 30 top La tin American cha nnels from C hile (T V Chile), P eru (America TV ), Colombia (C arac ol T V and T V C olomb ia), Argentina (Tele fe Internacional), V enezuela (Meridiano TV ), B olivia, E cua dor, G uatemala , Mex ico, P ara guay, D omin ican R epublic and U rugua y. L ingo M edia C orporation announced delay ed 2 0-F filing O n 04/17/2009, L ingo M edia C orpora tion a nnounced tha t they will be unable to fi le their nex t 20-F by th e dea dline required by the S E C. L ing o Media C orporation (TS XV: L M) L ionbridge T ec hnologies Inc. Announces P a rtnership with L ionbridge T echnologi es Inc. announced a n alliance wi th O pen T ext C orp. W ith the alliance, joint c us tomers of O pen Tex t and L ionbridge L ion bridge Tech nologies In c. O pen T ext C orporation to S treamline R egula tory can now streamline the dev elopment, implementa tion and integration of regula tory complia nc e s olutions by combining expert development (Nas daqG M:LIOX); Open Text C orp. Complia nc e S olutions for P ha rmac eutic al Compa nies services from L ionbridge together with innov ativ e enterpris e c ontent ma na gement s olutions from O pen T ext. P ha rmac eutical companies a nd (Nas daqG S : OT E X) other orga nizations need a complete, relia ble s olution for managing enterprise content within a complex regula tory c omplia nce env ironment. NetDragon W ebS oft, I nc. , 0. 11 (H K D), Ca s h D ividend, NetDragon W ebS oft, I nc. , 0. 11 (H K D), C a sh Di vidend, Apr-15-2009 NetDrago n W ebS oft, Inc. (S E HK :777) Apr-15-2009 O pen T ext E xpands C ontent S ec urity O ffering with O pen T ext C orp. announced the immediate a va ila bi lity of its la test C onnec tiv ity s olution, O pen T ext S O CK S Client, an enterpris e-gra de Open T ext C orp. (Nas daqG S : OT E X) R elea s e of S O CK S C lient S O CK S V 4 a nd V 5 client, tha t a s sis ts organiza tions to transparently and c os t-effectively s ecure thei r enterprise content applica tions over T C IP /IP network s. P rotec ting confidential and miss ion critical applica tion content ha s bec ome a strateg ic priority for many organiz ations thes e da y s. Unfortunately, ma ny homegrown or v endor a pplications have not been built to opera te with network firewa lls and proxies forcing a dminis tra tors to lea ve gaping holes in their s ecurity infra structures . S O CK S is an industry s ta ndard security protoc ol tha t facilitates the routing of network traffic throu gh firewalls and proxy s ervers . T he O pen Tex t S O C K S C lient ca n dy na mica lly 'sock s-enable' enterpris e a pplications without requiring changes to their c ode. A rules -bas ed engine a llows adminis trators to decide which applica tion tra ffic shoul d be sec ured, ins tantly enabling i t to trav erse S O C K S prox ies and firewa ll s. S pec trumDN A, I nc. E lects R ebecc a D . Hers hinger a s O n April 13, 2009, the B o ard of D irectors of S pec trumD NA, I nc. elected R ebec ca D. H ers hinger as C hief F inancia l O fficer of the compa ny, S pec trumDNA, Inc . (OTC BB :S PXA) Chief F ina nc ial O fficer effective immedi a tely . Ms . Hers hinger, a ge 35, ha s been an employ ee of the compa ny sinc e J uly 2008 s erving as V ice P res ident of F inance a nd C orpora te Development. P rior thereto, a nd from 2007 to 2008, she provided financia l a nd s tra tegy consulting serv ices to K urt S a lmon Ass ocia tes a nd S pectrumDN A, I nc. Figure 7. Key Developments Source. Capital IQ
    • 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-four of the 92 companies have market caps under US$100 million, with 28 under $10 million. Online gaming companies dominate the top of the list. Market C ap (US D m) Tencent Holdings L td. 3558. 7 Neteas e. com Inc. 3084.8 S handa Interac tive Entertainment L td. 2281.9 IA C/InterA ctiv eCorp. Open Tex t Corp. 1823.2 S ohu. com Inc. 1769.7 G iant Interac tiv e G roup, Inc. 1717. 6 Modern Times G roup Mtg A B 1263.1 1242.7 G ree, Inc. 840.4 Perf ec t World Co. , L td. 805. 1 V alueClic k Inc. 666.3 Mix i, Inc. K ings of t Co. L td. 528.4 Chines e G amer International 471. 1 NEOWIZ G ames Corporation 401.9 United Online Inc. 391.0 G igaMedia L td. 368.5 319.2 NetDragon WebS of t, Inc. 280.9 S K Communications Co. , L td. 264.5 S hutterf ly, Inc. The9 Limited 257.2 X ING A G 178.7 CDC Corp. 151.0 G amania Digital Entertainment Co. , L td. 143. 2 G ungHo Online Entertainment, Inc. 142. 4 111. 8 Y edangOnline Corp. 104.4 DA DA S pA 100.8 Openw ave S y s tems Inc. 94. 0 A c toz S of t Co. , L td. G ameOn Co L td. 92. 2 Moggle, Inc 83.5 DigitalTow n, Inc. 81.2 OA O R B C Inf ormation S y s tems 69. 4 69. 0 TheS treet.c om, Inc. 68. 5 HanbitS of t, Inc. 65. 9 K aboos e Inc . 62.0 B eyond Commerc e, Inc . Tree. Com, Inc. 56.7 Cyberplex Inc. 52.2 J umpTV Inc. 50.7 S park Netw orks , Inc . 48.3 G eoS entric Oyj 46.3 45.5 PhotoChannel Netw orks Inc. 39. 0 NeXplore Corporation 38. 3 Ngi G roup Inc. 38. 2 B roadWebA s ia Inc. Webz en Inc. 31.2 Northgate Tec hnologies Limited 29.8 S ites earc h Corporation 28.2 G ravity Co., L td 27.2 26.8 Wiz z ard S of tw are Corporation 26.6 Dolphin Digital Media, Inc. 26.5 A Q Interac tiv e, Inc. 25.4 Frogs ter Interac tive Pic tures A G Eolith Co. L td. 21.9 DX N Holdings B hd 19.8 L ookS mart, L td. 19.3 J umbuck Entertainment Pty L td. 17.4 IA S Energy, Inc . 17.2 14. 9 Fluid Mus ic Canada, Inc . 14. 2 Ex tens ions , Inc . 13. 4 A c celeriz e New Media, Inc. IdeaEdge, Inc. 12. 8 S pec trumDNA , Inc. 10. 2 L ingo Media Corporation 9. 3 Quepas a Corp. 9. 2 Worlds . com Inc . 8. 9 8. 2 Y nk K orea Inc. 7. 6 S NA P Interac tiv e, Inc. 6. 9 UOMO Media, Inc 6. 5 Magnitude Inf ormation S y s tems Inc. CornerWorld Corporation 6. 4 MOK O.mobi Limited 5. 0 B right Things plc 5. 0 is eemedia Inc. 4. 2 4. 1 B etaw av e Corporation 3. 1 L iv eWorld Inc. 2. 6 Wooz y Fly, Inc. 2. 5 V OIS , Inc. Wy nds torm Corporation 1. 6 DigitalPos t Interac tiv e, Inc. 1. 1 Unis erve Communic ations Corp. 0. 8 B igs tring Corp. 0. 7 The Parent Company 0. 5 0. 4 Financ ial Media G roup, Inc . 0. 3 ZipL oc al Inc. 0. 2 Total S port Online A S A s s oc iated Media Holdings Inc. 0. 1 China G atew ay Corporation 0. 0 S NM G lobal Holdings 0. 0 Dibz International, Inc. 0. 0 S ocial Media V enures , Inc . 0. 0 0 500 1,000 1,500 2,000 2,500 3, 000 3, 500 4,000
    • 0. 0 5. 0 10. 0 15. 0 20. 0 25. 0 30. 0 35. 0 40. 0 45. 0 (x) S ocial Media V enures , Inc . # Companies 0.0 5.0 10.0 15.0 20.0 25.0 O AO R B C Information S y s tems Source. Capital IQ Source. Capital IQ Source. Capital IQ F luid Mus ic C a nada , Inc. 1 under 1.5x. AIM A verage, 4.2 20.6 S handa Interac tive E ntertainment Ltd. 2 AMEX 15.4 O penwave S y s tems Inc . Figure 8. Market Cap Ranking TSXV U nis erve C ommunications C orp. 13.4 Figure 9. TEV/Revenue Ranking L iveWorld Inc . NasdaqGS 6.6 N orthgate T echnologies L imited OTCBB T he P a rent C ompany 5 13 22 1 KLSE 5.8 5.0 T ree.C om, Inc. 2 IAC /InterAc tiveC orp. GTSM G a meO n C o Ltd. 1 OM C DC C orp. 9 OTCPK DXN Holdings B hd 4 TSX 4.0 4.0 2.9 2.1 Figures 10 & 11. TEV/Revenue Ranking (Exchange, Country) Y nk K orea Inc . 5 ZipLoca l Inc . TSE DADA S pA 5 NasdaqGM S hutterfly , Inc . 2 ASX S pa rk N etwork s , Inc . 1 HLSE Ac toz S oft C o. , Ltd. 0.00.00.00.10.1 0.10.20. 20.20.30.4 0.50.50.50.60.60.70.80.80.9 1 H anbitS oft, Inc . RTS 1.8 1.8 1.6 1.5 0.8 J umbuck E nterta inment P ty L td. 7 Average TEV/LTM Revenue - By Exchange KOSE 0.6 United O nline Inc . 2 XTRA S N M G loba l Holdings 1 G ungH o O nline E ntertainment, Inc. OSE 0.5 0.4 the companies are Canadian (average 7.9x revenue). V alueC lic k Inc . 3 SEHK C y berplex Inc . 1 OTCNO 0.2 0.1 K aboos e Inc . G a mania Digital E ntertainment C o., Ltd. Modern T imes G roup Mtg AB E olith C o. Ltd. G igaMedia Ltd. (x) S K C ommunica tions C o., Ltd. NetDra gon WebS oft, Inc . 0.0 5.0 10.0 15.0 20.0 25.0 # Companies S NAP Intera ctive, Inc. 1. 01.01.01.11.11.11.11.11.11.11. 21.51.8 2.02.0 T E V/L T M R evenue (x) United is eemedia Inc . 1 20.6 Kingdom Y edangO nline C orp. O pen T ex t C orp. 3 Taiwan 15.8 J umpT V Inc . XIN G AG Canada 11 7.9 P hotoC ha nnel Network s Inc. N E O WIZ G ames C orporation 1 Malaysia 5.0 Lingo Media C orporation 2.12.22.52.62.72.72.9 3.0 United S ohu.com Inc . 41 4.7 States K ings oft C o. Ltd. 1 4.0 MO K O .mobi L imited Sweden 3. 43.8 4.0 Wiz z ard S oftware C orporation 9 China T otal S port O nline AS Mix i, Inc . 2 1.9 1.6 Australia Acceleriz e New Media , Inc . F rogs ter Intera ctiv e P ic tures AG 1 1.5 Finland DigitalP os t Intera ctive, Inc. 4.54.64.74.74.85.0 C ornerWorld C orporation 6 Japan G eoS entric O y j 6.06. 9 As s ociated Media Holdings Inc . 1 Russia C hines e G amer Interna tional 8.1 9.1 UO MO Media, Inc South 11.3 9 Average TEV/LTM Revenue - By Country 1.3 0.8 0.7 T encent Holdings Ltd. Korea 15.4 B right T hings plc 2 20.6 Germany 0.5 B igs tring C orp. 23.6 Hong B ey ond C ommerc e, Inc. 1 35. 7 Kong G ree, Inc . 39.5 Page 10 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 last week (Figure 9). However, this is skewed by Gree (3633-TSE) at 39.5x and Beyond Commerce Inc. (BYOC-OTCBB) at 35.7x. The median is only 1.2x. Note that we exclude multiples greater than 50x. Thirty-two companies have multiples number of companies (22), trading at an average multiple of 5.8x (from 5.7x last week). On a geographic basis, the United States has the most companies (41), trading at an average of 4.7x revenue (from 4.8x last week) (Figure 11). Eleven of TEV/Revenue (LTM) averages 4.2x: The overall average TEV/Revenue (LTM) multiple for our group is 4.2x – same as 1 Norway 0.5 0.1
    • Page 11 TEV/EBITDA (LTM) averages 8.7x: The average multiple for the 30 companies with positive EBITDA (and multiples under 100x) is 8.7x LTM EBITDA (from 8.8x last week), led by Tencent Holdings Ltd.’s (700-SEHK) 31.4x multiple (Figure 12). Sixteen of the companies have EBITDA multiples under 7x. The median multiple is 7.1x (vs. 6.7x last week). T E V/L T M E B IT DA (x) 35.0 31. 4 29. 5 30.0 25.0 19. 1 20.0 18.0 15.0 12.4 12.9 10. 8 11. 0 11. 1 9. 8 10.0 9. 6 A verage, 8. 7 8. 5 10.0 8. 2 8.1 7.7 7.1 6. 4 6. 4 6. 2 6.0 6. 0 4.7 4.5 4. 4 4. 2 3.9 3. 9 5.0 2.8 1.8 1.3 0. 1 0. 2 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 S handa Interactive E ntertainment Ltd. U nited O nline Inc. S NAP Interactive, Inc. O pen T ex t C orp. S park Network s , Inc. NetDragon WebS oft, Inc. V alueC lick Inc. G igaMedia Ltd. S ohu. com Inc. IAC /InterActiveC orp. XING AG Mix i, Inc. C y berplex 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 29.5x. On a geographic basis, the United States has the most companies (41), trading at an average of 8.1x EBITDA (Figure 14). Eleven of the companies are Canadian (average 11.3x EBITDA). Average TEV/LTM EBITDA - By Country Average TEV/LTM EBITDA - By Exchange 35.0 35.0 31.4 29.5 30.0 30.0 25.0 25.0 29.5 20.0 20.0 (x) 12.9 (x) 15.8 15.0 12.9 15.0 11.5 11.3 11.0 10.0 9.3 9.1 8.2 7.7 7.6 7.2 8.1 10.0 7.7 6.4 10.0 7.1 6.4 6.2 4.7 2.4 6.2 5.0 1.8 0.2 3.6 5.0 0.0 0.0 1.8 0.0 OTCNO OTCPK OTCBB GTSM NasdaqGM NasdaqCM TSE NasdaqGS OSE HLSE RTS KOSE AMEX TSX XTRA TSXV ASX Germany China Canada Hong Japan United Finland Russia India Kong South Korea States Taiwan Australia Norway # Companies 1 3 9 11 1 6 41 2 1 1 9 2 1 # Companies 2 1 5 2 5 13 1 2 5 22 4 1 1 9 7 2 1 Figures 13 & 14. TEV/EBITDA Ranking (Exchange, Country) Source. Capital IQ P/E (LTM) averages 15.9x: The average multiple for the 32 companies with positive earnings (and multiples under 100x) is 15.9x LTM EPS (from 15.8x last week), led by TheStreet.com’s (TSCM-NASDAQ) 72.8x multiple (Figure 15). Thirteen of the companies have P/E multiples under 10x. The median is just 11.3x.
    • Page 12 P /E L T M (x) 80.0 72.8 70.0 59.4 60.0 50.0 42.2 37.3 40.0 32.0 30.0 24.6 21.9 18.7 19.2 15.6 17.0 20.0 A verage, 15.9 13.7 11.6 11.7 12.7 9.9 10.5 11.0 11.2 11.4 9.4 8.0 6.3 10.0 3.9 3.9 3.3 2.3 2.6 1.7 2.0 1.5 0.8 0.0 NE O W IZ G ames C orporation J umbuck E ntertainment P ty Ltd. G amania Digital E ntertainment C o., Ltd. C hines e G amer International Northgate T echnologies Limited DXN H oldings B hd G iant Interactive G roup, Inc. G ameO n C o Ltd. Modern T imes G roup Mtg AB T he9 Limited Neteas e.com Inc. S handa Interactive E ntertainment Ltd. S NAP Interactive, Inc. Ngi G roup Inc. O pen T ex t C orp. T heS treet.com, Inc. Worlds .com Inc. NetDragon W ebS oft, Inc. C y berplex Inc. S ohu.com Inc. S park Network s , Inc. G igaMedia Ltd. IAC /InterActiveC orp. Mix i, Inc. T encent H oldings Ltd. XING AG P erfect World C o., Ltd. 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 12.0x. On a geographic basis, the United States has the most companies (41), trading at an average of 17.8x earnings (Figure 17). Eleven of the companies are Canadian (average 23x EPS). Average P/E - By Exchange Average P/E - By Country 70.0 80.0 72.8 59.4 70.0 60.0 60.0 59.4 50.0 50.0 40.0 32.0 28.7 (x) 40.0 (x) 22.7 23.0 30.0 30.0 18.7 17.8 19.5 17.0 11.7 20.0 12.1 12.0 11.7 11.0 10.5 11.0 20.0 9.4 10.5 9.4 10.0 8.5 7.9 6.0 10.0 0.0 0.0 OTCPK OTCBB NasdaqGM GTSM RTS TSE OSE HLSE NasdaqGS XTRA AMEX TSX TSXV ASX 0.0 Germany Russia Canada Japan United Finland China South Korea States Taiwan Australia Norway 5 1 5 9 2 5 1 4 22 1 2 2 2 13 # Companies 1 11 6 41 1 3 2 2 9 9 1 # Companies Figures 16 & 17. P/E Ranking (Exchange, Country) Source. Capital IQ
    • Page 13 UPCOMING EVENTS E arnings Calendar C ompany D ate & T ime Qu arter C onf C all D etails S hutterfly , Inc . (N a sda qG S : S F L Y ) W ednes da y, April 29, 2009 5:00 P M (E D T) Q 1 2009 877-591-4956 I AC /I nterAc tiveC orp. (Na s da qG S :I AC I) W ednes da y, April 29, 2009 11:00 AM (E D T) Q 1 2009 NA Openwa ve S ys tems Inc . (Na s da qG S : O P W V ) W ednes da y, April 29, 2009 2:00 P M (P D T) Q 3 2009 800-289-0508 T ree. C om, Inc . (N a sda qG M :T R E E ) F riday, M a y 01, 2009 11:00 AM (E DT ) Q 1 2009 877-407-0782 V a lueClic k Inc . (N a sda qG S : V C L K ) T uesda y , May 05, 2009 4: 30 P M (E D T ) Q 1 2009 818-575-4677 U nited O nline Inc . (N a sda qG S : UN TD ) T uesda y , May 05, 2009 2: 00 P M (P D T ) Q 1 2009 877-681-3374 Figure 18. Earnings Calendar Source. Company reports
    • 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 3.4 0.4 9 53.1 % 1 13.0 % 40 .0% -2.0% -31 .9% -37. 2% Actoz S of t C o., L td. KR W A 052 790 KO SE 9 4.0 1 4,70 0.0 0 2.4 % 2 9.5 % 43 .4% 77 .1% 81.9 % -8.1 % AQ Inte ractive , Inc. JPY 3 838 TSE 2 6.5 4 8,00 0.0 0 11.1 % 4 6.8 % 65 .5% 18 .2% -78 .1% -79. 6% As s ocia ted Media H oldings Inc. US D A S MH OT C P K 0 .1 0.0 0 7.1 % 7.1% -8 5.0% -8 1.3 % 36.4 % -97. 0% B igstring Corp. US D B S GC OT C B B 0 .7 0.0 1 3.7 % -12. 5% -2 0.0% -4 4.0 % -92 .2% -93. 6% B e tawave Corpora tion US D B W AV OT C B B 4 .1 0.1 4 7.7 % -6.7 % -3 6.4% -2 2.2 % -65 .0% -66. 7% B e yond Commerce, Inc. US D B Y OC OT C B B 6 2.0 1.5 0 17.2 % 2 57.1 % 54 .6% -3 0.2 % -31 .8% -54. 5% B right T hings plc GBP A IM:B G T AI M 5 .0 0.0 2 19.0 % 0.0% 40 .0% 94 .4% -47 .6% -58. 8% 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 15 1.0 1.4 0 11.1 % 3 7.3 % 53 .8% -1.4% -62 .3% -65. 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 1.1 18 7.5 0 -2.3 % 1 9.4 % 10 4.9% 17 6.5% 66.7 % -8.8 % C ornerW orld C orporation US D CWR L OT C B B 6 .4 0.1 0 -16. 7% -28. 6% -7 5.6% -5 0.0 % -80 .4% -87. 5% C yberplex Inc. C AD T S X:CX TSX 5 2.2 1.2 0 0.0 % 5 1.9 % 24 2.9% 16 0.9% 62.2 % -3.2 % D ADA S pA E UR C M :DA CM 10 4.4 4.9 9 16.3 % 4.3% -2 5.8% -3 3.0 % -64 .4% -69. 2% D XN Holdings B hd MY R DXN KL SE 1 9.8 0.3 1 -3.1 % 1 0.7 % -1 6.2% -1 1.4 % -42 .6% -44. 6% 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 0.0 % 2 00.0 % -3 1.8% -5 7.1 % -90 .6% -94. 6% D igitalT own, Inc. US D DG T W OT C B B 8 1.2 3.0 0 20.0 % 2 0.0 % 0 .0% 50 .0% 15.4 % -50. 8% D olphin Digital Me dia, Inc. US D DP DM OT C B B 2 6.6 0.5 4 -5.3 % -21. 7% -2 2.9% -4 6.0 % NM -52. 2% E olith C o. L td. KR W A 041 060 KO SE 2 1.9 62 5.0 0 2.5 % 1 3.6 % 15 .7% 15 .7% -46 .8% -50. 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 .4 0.0 1 -25. 0% -53. 8% -7 6.0% -9 8.1 % -96 .9% -99. 4% F luid M us ic Ca nada, Inc. C AD T S X:F MN TSX 1 4.9 0.3 5 -30. 0% -12. 5% 12 .9% -7.9% NM -82. 8% F rogs te r Interactive P icture s AG E UR FR G XT R A 2 5.4 8.3 5 8.2 % 2 3.3 % 60 .9% 12 5.7% 74.0 % -5.1 % G a ma nia Digital E ntertainment C o., L td. TWD 6 180 GT S M 14 3.2 3 1.9 0 -7.8 % 2.9% 45 .0% 12 0.0% -5. 1% -13. 7% G a me On C o L td. JPY 3 812 TSE 9 2.2 9 3,80 0.0 0 0.9 % 1 7.3 % -1 9.4% 29 .4% -17 .0% -42. 6% G e oS e ntric O yj E UR G E O1V H LS E 4 6.3 0.0 4 33.3 % 0.0% 0 .0% 33 .3% -33 .3% -42. 9% G iant Intera ctive G roup, Inc. US D GA NYS E 1,7 17. 6 7.6 0 0.4 % 8.9% 35 .7% 17 .3% -38 .5% -55. 8% G iga Media Ltd. US D G IG M N as da qG S 36 8.5 6.8 2 10.4 % 2 2.7 % 13 .9% 11 .3% -58 .2% -65. 7% G ravity C o., L td US D G RV Y N as da qG M 2 7.2 0.9 8 4.3 % 5 3.1 % 66 .1% 24 .1% -29 .0% -51. 0% G ree, Inc. JPY T S E :36 32 TSE 1,2 42. 7 5,48 0.0 0 -3.9 % 1 8.9 % -2 .5% NM NM -13. 0% G ungH o O nline E ntertainment, Inc. JPY 3 765 OS E 14 2.4 12 2,30 0.0 0 -4.1 % 7.3% 20 .5% 21 .1% -61 .8% -71. 9% H anbitS oft, Inc. KR W A 047 080 KO SE 6 8.5 4,16 0.0 0 -10. 4% 2 6.1 % 31 .6% 32 .5% -9. 0% -40. 7% IAC /InterActiveC orp. US D I ACI N as da qG S 2,2 81. 9 1 6.1 9 -2.5 % 1 0.0 % 9 .6% 0 .2% -60 .1% -67. 9% IAS E nergy, Inc. US D I AS C .A OT C B B 1 7.2 0.2 5 2 50. 0% 4 44.4 % 106 6.7 % 75 .0% 6.5 % -30. 0% IdeaE dge, Inc. US D O TC B B :ID AE OT C B B 1 2.8 0.3 0 -23. 1% -23. 1% -6 3.9% -8 4.2 % -57 .1% -89. 4% is ee media Inc. C AD IEE T S XV 4 .2 0.1 0 -9.1 % 2 5.0 % 11 .1% 42 .9% -68 .8% -71. 4% J umbuck E ntertainment P ty Ltd. AU D A S X:J M B AS X 1 7.4 0.5 0 4.2 % 0.0% 4 .2% -1 4.5 % -21 .9% -23. 7% J umpT V Inc. C AD T S X:J T V TSX 5 0.7 0.5 5 -5.2 % 3 7.5 % 83 .3% -2 0.3 % -21 .4% -57. 0% K a boos e Inc. C AD T S X:K AB TSX 6 5.9 0.5 8 0.0 % 6 5.7 % 65 .7% 1 .8% -54 .3% -58. 9% K ings oft Co. Ltd. HKD 3 888 S E HK 52 8.4 3.8 1 17.6 % 2 9.2 % 41 .6% 90 .5% 22.9 % -11. 6% Lingo Media Corporation C AD T S XV :LM T S XV 9 .3 0.8 9 11.3 % 8.5% -1 .1% -4 0.3 % -55 .3% -59. 5% Live World Inc. US D L VW D OT C P K 3 .1 0.1 0 -23. 1% -50. 0% 10 0.0% -2 3.1 % -37 .5% -75. 6% LookS mart, Ltd. US D L OOK N as da qG M 1 9.3 1.1 3 -5.0 % 1 4.1 % -1 3.1% -3 8.9 % -71 .0% -76. 5% M agnitude Information S ys tems Inc. US D M AG Y OT C B B 6 .5 0.0 2 50.0 % -11. 8% -5 0.0% -1 1.8 % -28 .6% -50. 0% M ixi, Inc. JPY 2 121 TSE 66 6.3 42 7,00 0.0 0 10.9 % 3 1.4 % -2 1.1% -3 5.1 % -49 .6% -55. 3% M ode rn Times G roup Mtg AB SE K MT G B OM 1,2 63. 1 16 6.0 0 6.8 % 1 7.7 % 25 .5% -9.3% -61 .8% -63. 5% 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 .0 0.0 9 -5.6 % 7 0.0 % 70 .0% 77 .1% 1 57. 6% -15. 0% N E OW IZ G ames C orpora tion KR W A 095 660 KO SE 40 1.9 5 5,60 0.0 0 -11. 7% 4 2.9 % 19 1.1% 27 3.2% 62.1 % -24. 3% N etDragon W ebS oft, Inc. HKD 7 77 S E HK 31 9.2 4.6 8 12.5 % 1 2.8 % 63 .1% 70 .2% -49 .2% -65. 6% N ete as e.com I nc. US D NT E S N as da qG S 3,5 58. 7 2 8.9 2 -1.5 % 2 9.7 % 67 .5% 29 .8% 42.0 % -7.5 % N eXplore Corpora tion US D N XP C OT C P K 3 9.0 0.7 0 -22. 2% 1 6.7 % -3 0.0% 27 .3% NM -51. 7% N gi G roup Inc. JPY 2 497 TSE 3 8.3 3 0,50 0.0 0 11.3 % 7 3.4 % -3 9.8% -6 1.7 % -77 .4% -81. 7% N orthgate Te chnologies L imited IN R 5 900 57 BS E 2 9.8 4 3.0 0 4.0 % 2 9.1 % -5 .2% -3 7.2 % -89 .0% -90. 9% Open T e xt Corp. US D O TE X N as da qG S 1,8 23. 2 3 5.1 3 0.1 % 6.5% 18 .2% 38 .4% 6.4 % -10. 1% Openwave S ys tems Inc. US D O PW V N as da qG S 10 0.8 1.2 1 -9.7 % 3 4.4 % 10 8.6% 39 .1% -44 .2% -52. 5% P e rfect W orld C o., Ltd. US D P W RD N as da qG S 84 0.4 1 5.9 3 -6.2 % 2 6.6 % 9 .6% -1 9.6 % -40 .3% -52. 5% P hotoChannel N etwork s Inc. C AD T S XV :P N T S XV 4 5.5 1.6 4 -3.5 % 5.8% 2 .5% -5.7% -53 .0% -60. 5% Quepa s a C orp. US D Q PSA N as da qC M 9 .2 0.7 2 -21. 7% -28. 0% -6 2.3% -6 6.8 % -73 .3% -79. 2% OA O R B C Information S ys tems US D R BC I R TS 6 9.4 0.5 0 22.0 % 1 08.3 % -1 2.3% -8 7.5 % -94 .5% -94. 6% S handa Interactive E ntertainme nt L td. US D S NDA N as da qG S 3,0 84. 8 4 4.4 6 -14. 8% 3 1.0 % 59 .7% 60 .7% 36.5 % -17. 5% S hutte rf ly, Inc. US D S F LY N as da qG S 26 4.5 1 0.5 1 -2.2 % 2 6.0 % 52 .3% 38 .8% -38 .2% -41. 5% S K C ommunications Co., Ltd. KR W A 066 270 KO SE 28 0.9 9,09 0.0 0 -10. 4% 1 7.6 % 56 .7% 25 .9% -37 .7% -53. 9% 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 1 400 .0% 2 00.0 % 50 0.0% -9 8.5 % -99 .7% -99. 9% S ocia l Media V e nures , Inc. US D S MVI OT C P K 0 .0 0.1 5 -83. 0% -87. 5% -8 5.6% -8 5.1 % NM -97. 0% S ohu. com Inc. US D S OH U N as da qG S 1,7 69. 7 4 6.4 3 -7.1 % 1 8.0 % 20 .4% -1 3.0 % -24 .9% -49. 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 8.3 2.3 5 4.4 % 4.9% -5 .6% -2 5.4 % -46 .5% -49. 5% S pectrumDN A, Inc. US D S P XA OT C B B 1 0.2 0.2 1 40.0 % 1 0.5 % 10 .5% -1 6.0 % NM -65. 0% T encent Holdings L td. HKD 7 00 S E HK 14, 848 .6 6 3.9 0 3.4 % 2 1.0 % 42 .3% 30 .8% 17.2 % -11. 3% T he P arent C ompany US D K IDS .Q OT C P K 0 .5 0.0 2 14.3 % 5 66.7 % -6 0.8% -9 7.5 % -99 .5% -99. 5% T he 9 L imited US D NC TY N as da qG S 25 7.2 9.5 9 -27. 6% -27. 7% -3 2.1% -2 9.0 % -54 .5% -66. 4% T he S treet.com, Inc. US D T S CM N as da qG M 6 9.0 2.2 6 6.6 % 1 4.7 % -2 1.8% -3 9.6 % -75 .4% -76. 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% 0 .0% -2 0.0 % -60 .0% -60. 0% T ree.C om, Inc. US D TR EE N as da qG M 5 6.7 5.6 8 3.3 % 2 2.4 % 42 .0% 11 0.4% NM -48. 8% 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 39 1.0 4.7 6 -11. 2% 2 1.1 % -1 9.0% -3 2.1 % -55 .4% -61. 9% U OMO Media , Inc US D U OMO OT C B B 6 .9 0.0 8 -27. 3% 3 3.3 % 14 .3% -5 2.9 % -80 .0% -90. 0% V a lueC lick Inc. US D V CL K N as da qG S 80 5.1 9.2 8 -8.2 % 2 8.9 % 65 .1% 35 .9% -53 .1% -55. 8% 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 1.2 2.6 3 -8.0 % 4 6.0 % 11 2.1% 16 5.7% -9. 9% -40. 9% W iz za rd S of twa re Corpora tion US D W ZE AM E X 2 6.8 0.5 7 -17. 4% 3 2.6 % -2 0.8% -2 9.6 % -72 .9% -75. 7% 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 1 .6 0.0 9 -47. 1% -25. 0% -2 5.0% -5 5.0 % NM -89. 4% XIN G AG E UR O 1B C XT R A 17 8.7 2 7.0 0 -4.5 % -4.3 % -5 .4% -3.5% -26 .1% -42. 1% Y e dangOnline Corp. KR W A 052 770 KO SE 11 1.8 9,51 0.0 0 -2.0 % 2 9.2 % 46 .3% 51 .0% -18 .7% -24. 2% Y nk K orea Inc. KR W A 023 770 KO SE 8 .2 4,44 0.0 0 -12. 3% 1 7.5 % 3 .3% -4 5.0 % -69 .4% -71. 2% 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 1 400 .0% 5 66.7 % 106 6.7 % 27 3.2% 1 57. 6% 0.0 % Low -90. 0% -90. 0% -9 0.0% -9 8.5 % -99 .7% -99. 9% A vera ge 431.5 15.8% 29.6% 32.9% 5.1% -36.9% -58.0% M edian -0.8 % 1 7.3 % 10 .1% -1 0.4 % -48 .4% -59. 2% Figure 19. Price Performance Source. Capital IQ
    • Page 15 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 13. 4 4.7 x - - - - - - Actoz S of t C o., L td. G aming S outh K ore a K OS E A 052 790 94. 0 0.9 x - 4.7 x - 15 .6x - 1 .8x AQ Inte ractive , Inc. G aming J a pan TSE 3 838 26. 5 - - - - - - 0 .4x As s ocia ted Media Holdings Inc. Mobile U nite d S tates OT C P K AS MH 0. 1 8.1 x - - - - - - B igstring Corp. Ins ta nt Mes 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 4. 1 - - - - - - 0 .4x B e yond Commerce, Inc. S ocia l Ne tworking U nite d S tates OT C B B BYO C 62. 0 35.7 x - - - - - - B right T hings plc S ocia l Ne tworking U nite d K ingdom AIM AIM:B G T 5. 0 20.6 x - - - - - - B roa 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 51. 0 0.5 x 0.5x 11.0 x 8.8x - - - 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 71. 1 9.1 x - 18.0 x - 24 .6x - 8 .3x C ornerW orld C orporation C ontent U nite d S tates OT C B B CWR L 6. 4 6.0 x - - - - - - C yberplex Inc. Advertis ing C anada TSX T S X:C X 52. 2 1.1 x 0.8x 12.9 x 8.7x 11 .0x 1 2.0 x 1 1.3x D AD A S pA S ocia l Ne tworking Italy CM CM:DA 1 04. 4 0.7 x - 4.2 x - 6. 3x - - D XN Holdings B hd S ocia l Ne tworking Malays ia KL SE D XN 19. 8 0.5 x - 3.9 x - 3. 9x - 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 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 81. 2 - - - - - - - D olphin D igital Me dia, Inc. S ocia l Ne tworking U nite d S tates OT C B B DP DM 26. 6 - - - - - - - E olith C o. L td. G aming S outh K ore a K OS E A 041 060 21. 9 1.2 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. 4 - - - - - - - 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 25. 4 4.8 x - - - - - 2 .4x G a ma nia D igital E ntertainment C o., L td. G aming T a iwan GTS M 6 180 1 43. 2 1.1 x - 7.7 x - 18 .7x - 2 .0x G a me On C o L td. G aming J a pan TSE 3 812 92. 2 0.5 x - 1.8 x - 9. 4x - 1 .3x G e oS e ntric O yj Mobile F inland H LS E G E O1V 46. 3 6.9 x - - - - - 4 .9x G iant Intera ctive G roup, Inc. G aming C hina NYS E GA 1,7 17. 6 - - - - 1. 7x 1 2.6 x 0 .3x G iga Media Ltd. G aming T a iwan N as da qG S G IG M 3 68. 5 1.5 x 1.6x 6.4 x 6.4x 11 .7x 1 0.7 x 3 .3x G ravity C o., L td G aming S outh K ore a N as da qG M GR VY 27. 2 - - - - - - - G ree, Inc. S ocia l Ne tworking J a pan TSE T S E :3 632 1,2 42. 7 39.5 x - - - - - 1 9.2x G ungH o O nline E ntertainment, Inc. Me dia J a pan OS E 3 765 1 42. 4 1.1 x - 6.0 x - - - - H anbitS of t, Inc. G aming S outh K ore a K OS E A 047 080 68. 5 1.0 x - - - - - 2 .3x IAC /InterActiveC orp. Me dia U nite d S tates N as da qG S IAC I 2,2 81. 9 0.4 x 0.4x 8.2 x 3.1x 17 .0x 2 7.8 x 1 .1x IAS E nergy, Inc. V ide o C anada OT C B B IA S C .A 17. 2 - - - - - - - IdeaE dge, Inc. S ocia l Ne tworking U nite d S tates OT C B B OT C B B :IDA E 12. 8 - - - - - - 9 .3x is ee media Inc. C ontent C anada T S XV IE E 4. 2 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. 4 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 50. 7 2.6 x - - - - - 2 .8x K a boos e Inc. C ontent C anada TSX TS X:K AB 65. 9 1.1 x 1.0x 11.1 x 6.2x - - - K ings oft Co. Ltd. G aming C hina S E HK 3 888 5 28. 4 3.8 x - 9.8 x - 13 .7x - 3 .2x Lingo Media Corporation Le arning C anada T S XV TS XV :LM 9. 3 3.0 x - - - - - - Live World Inc. S ocia l Ne tworking U nite d S tates OT C P K LV W D 3. 1 0.2 x - - - - - 1 .4x LookS mart, Ltd. D irect Marketing U nite d S tates N as da qG M L OOK 19. 3 - - - - - - 0 .7x Magnitude Information S ys tems Inc. S ocia l Ne tworking U nite d S tates OT C B B MAG Y 6. 5 - - - - - - - Mixi, Inc. S ocia l Ne tworking J a pan TSE 2 121 6 66. 3 4.7 x - 12.4 x - 32 .0x - 5 .2x Mode rn Times G roup Mtg AB Me dia S we den OM MT G B 1,2 63. 1 1.1 x 1.1x 7.1 x 8.9x 3. 9x 9.7x - 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. 0 4.0 x - - - - - 4 .4x N E OW IZ G ames C orpora tion G aming S outh K ore a K OS E A 095 660 4 01. 9 2.9 x - 10.8 x - 21 .9x - 1 2.9x N etD ragon W ebS oft, Inc. G aming C hina S E HK 777 3 19. 2 2.0 x - 4.4 x - 10 .5x - 1 .7x N ete as e.com I nc. G aming C hina N as da qG S NT E S 3,5 58. 7 - - - - 2. 3x 1 4.6 x 0 .7x N eXplore Corpora tion C ontent U nite d S tates OT C P K N XP C 39. 0 - - - - - - - N gi G roup Inc. Me dia J a pan TSE 2 497 38. 3 - - - - 11 .2x - 0 .6x N orthgate Te chnologies L imited D irect Marketing India BS E 59 005 7 29. 8 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 23. 2 2.5 x 2.3x 10.0 x 8.7x 37 .3x 1 4.7 x - Openwave S ys tems Inc. Mobile U nite d S tates N as da qG S OP W V 1 00. 8 0.1 x 0.1x - 1.5x - 4 0.3 x 1 .3x P e rf ect W orld C o., Ltd. G aming C hina N as da qG S PW R D 8 40. 4 - - - - 1. 5x 7.8x 0 .4x P hotoChannel N etwork s Inc. D igital Imaging C anada T S XV T S XV :P N 45. 5 2.7 x 1.9x - 5.8x - 2 1.2 x 1 0.1x Quepa s a C orp. S ocia l Ne tworking U nite d S tates N as da qC M QP S A 9. 2 - - - - - - 6 .8x OA O R B C Information S ys tems Me dia R us s ia R TS R B CI 69. 4 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 3,0 84. 8 0.1 x 0.4x 0.2 x 0.9x 2. 6x 1 4.5 x 1 .2x S hutte rf ly, Inc. D igital Imaging U nite d S tates N as da qG S S FL Y 2 64. 5 0.8 x 0.9x 6.2 x 5.6x 59 .4x - 1 .5x S K C ommunications Co., Ltd. S e arch S outh K ore a K OS E A 066 270 2 80. 9 1.8 x - 19.1 x - - - - S N AP Inte ra ctive , Inc. D ating U nite d S tates OT C B B S TVI 7. 6 2.0 x - 6.4 x - 9. 9x - 4 .9x 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 0.0 x - - - - - - S ohu. com Inc. G aming C hina N as da qG S S OH U 1,7 69. 7 3.4 x 2.9x 8.1 x 6.8x 11 .4x 1 1.4 x 5 .4x 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 48. 3 0.8 x - 3.9 x - 11 .6x - - S pectrumDN A, Inc. Me dia U nite d S tates OT C B B S P XA 10. 2 - - - - - - 1 5.5x T encent Holdings L td. P orta l C hina S E HK 700 14,8 48. 6 15.4 x - 31.4 x - 42 .2x - 1 7.2x T he P arent C ompany Me dia U nite d S tates OT C P K K ID S .Q 0. 5 0.2 x - - - - - - T he 9 L imited G aming C hina N as da qG S NC T Y 2 57. 2 - - - - 0. 8x 6.8x 0 .1x T he S treet.com, Inc. Me dia U nite d S tates N as da qG M TSCM 69. 0 - - - - 72 .8x - 0 .7x 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 56. 7 0.3 x 0.3x - - - - 0 .8x U nis erve C ommunications 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 3 91. 0 1.0 x 0.7x 4.5 x 2.9x - 6.6x - U OMO Media , Inc Me dia C anada OT C B B U OMO 6. 9 11.3 x - - - - - - V a lueC lick Inc. Me dia U nite d S tates N as da qG S VC LK 8 05. 1 1.1 x 1.3x 6.0 x 5.2x - 1 5.7 x 7 .8x V O IS , Inc. S ocia l Ne tworking U nite d S tates OT C B B VOIS 2. 5 - - - - - - 5 .6x W ebze n Inc. G aming S outh K ore a N as da qG M W ZE N 31. 2 - - - - - - 0 .0x W iz za rd S of twa re Corpora tion P odcas ting U nite d S tates AME X W ZE 26. 8 4.5 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 1. 6 - - - - - - - XIN G AG S ocia l Ne tworking G ermany XT R A O 1B C 1 78. 7 2.7 x - 8.5 x - 19 .2x - 5 .0x Y e dangOnline Corp. G aming S outh K ore a K OS E A 052 770 1 11. 8 2.2 x - 9.6 x - 12 .7x - 5 .9x Y nk K orea Inc. G aming S outh K ore a K OS E A 023 770 8. 2 0.6 x - - - - - - ZipLocal Inc. D irectory C anada T S XV T S XV :ZIP 0. 3 0.6 x - - - - - - H igh 14,8 48. 6 39.5 x 2.9x 31.4 x 8.9x 72 .8x 4 0.3 x 4 0.1x Low 0. 0 0.0 x 0.0x 0.1 x 0.9x 0. 8x 6.6x 0 .0x A vera ge 431. 5 4.2x 1.0x 8.7x 5.7x 15.9x 15.1x 5.0x Median 34. 7 1.2 x 0.8x 7.1 x 6.0x 11 .3x 1 2.6 x 2 .3x Figure 20. Valuation Comparison Source. Capital IQ
    • 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 Mar ket C ap ($m) U S D LT M T otal R ev ($m) U S D LT M Total E B IT DA ($m) E B IT DA % 41 26, 924.5 2,991. 6 3, 744. 3 1,653. 7 48. 4% U nited S tates C hina China U nited S ta tes C hina C hina C anada 11 U nited S tates 4, 543.0 S weden 1,263. 1 C hina 3, 348. 8 S weden 245. 3 Aus tral ia 37. 2% C hina 9 J a pan 2, 208.5 Japan 368. 1 S weden 1, 520. 5 U nited S ta tes 240. 1 T aiwa n 29. 7% S outh K orea 9 C anada 2, 076.2 Ta iwa n 327. 6 C a na da 943. 8 C a na da 186. 1 J a pa n 26. 1% J a pa n 6 S weden 1, 263.1 Ca na da 188. 7 S outh K orea 556. 8 J apan 131. 8 I ndia 17. 6% T a iwa n 3 S outh K orea 1, 045.7 Hong K ong 151. 0 J a pa n 500. 6 T a iwan 85. 4 S weden 16. 1% A ustra lia 2 T a iwa n 982.8 S outh K orea 116. 2 H ong K ong 428. 1 S outh K orea 63. 5 I ta ly 16. 0% G ermany 2 G erma ny 204.0 United S tates 110. 8 T aiwan 347. 9 I taly 35. 0 M a la ys ia 13. 3% N orway 1 H ong K ong 151.0 Ita ly 104. 4 I ta ly 219. 0 I ndia 23. 6 R uss ia 13. 1% 1 104.4 102. 0 139. 7 18. 8 4.7% H ong K ong I ta ly G erma ny R uss ia H ong K ong S outh K orea 1 69.4 69. 4 134. 1 18. 2 4.4% F inla nd R uss ia R us sia I ndia R uss ia H ong K ong 1 46.3 46. 3 76. 5 11. 3 -11.0% I ta ly F inland Finland M a la ys ia G erma ny U nited S ta tes 1 29.8 29. 8 50. 3 10. 2 -14.3% U nited K ingdom I ndia India G ermany M alays ia G ermany 1 22.5 19. 8 13. 6 2. 6 -18.0% I ndia Aus tra lia Malay sia Aus tra l ia Aus tralia C anada 1 19.8 11. 2 5. 7 -1. 0 -50.6% S weden M alays ia Australia F inla nd N orway N orway 1 5.0 5. 0 2. 0 -1. 6 #DI V /0! R us sia U nited K ingdom United K ingdom N orwa y U nited K ingdom U nited K ingdom 1 0.2 0. 2 0. 2 -12. 7 #DI V /0! M a la ys ia N orway Norway U nited K ingdom F inland F inla nd G rand To tal 92 G rand T otal 39,696.1 G rand Total 431.5 G rand T otal 12,031.8 G r and T otal 2,710.4 G rand T otal 6.9% Figure 21. Comparison by Country Source. Capital IQ C omparable C ompany A nalys is > W eb 2.0 Su mmary b y Ex c hange C om pany Nam e U S D Market Cap ($m) Avg US D Mar ket C ap ($m) U S D LT M T otal R ev ($m) U S D LT M Total E B IT DA ($m) E B IT DA % 22 15, 696.7 5,232. 1 1, 520. 5 1,521. 7 61. 9% OT C B B N asdaqG S S E HK OM N a sdaqG S NYS E N as da qG S 13 SE HK 15, 696.2 NY S E 1,717. 6 N a sda qG S 492. 6 S E HK 597. 9 S EHK 44. 4% OT C P K 9 TSE 2, 066.1 OM 1,263. 1 S E HK 417. 8 OM 245. 3 AS X 37. 2% K OS E 7 NYS E 1, 717.6 Na s daqG S 1,207. 4 NYS E 233. 2 NYS E 144. 4 GT SM 32. 5% TSE 5 OM 1, 263.1 TS E 413. 2 CM 219. 0 TSE 111. 4 TSE 27. 7% N as da qG M 5 K OS E 987.3 G TS M 307. 1 R TS 139. 7 K OS E 60. 7 N asdaqG S 26. 8% T S XV 5 GTS M 614.3 OS E 142. 4 BSE 134. 1 GT S M 39. 4 OS E 17. 8% TSX 4 OT CB B 384.5 K OS E 141. 0 OS E 114. 3 CM 35. 0 BSE 17. 6% S E HK 3 XT R A 204.0 CM 104. 4 N a sda qG M 84. 7 BSE 23. 6 OM 16. 1% 2 203.4 102. 0 78. 7 20. 4 16. 0% A ME X N asdaqG M XT R A GT S M OS E CM 2 183.7 69. 4 77. 3 18. 2 13. 3% XT R A TSX RT S TSE R TS K LS E 2 142.4 46. 3 76. 5 11. 3 13. 1% ASX OS E HL S E K LS E XTR A R TS 2 104.4 45. 9 71. 2 10. 2 6.1% GT SM CM TS X K OS E K LS E K OS E 1 95.1 40. 7 32. 6 6. 3 -0. 9% O T C NO OT CP K Na s daqG M TSX AM E X N asdaqG M 1 75.2 37. 6 31. 7 2. 6 -14.3% H LS E AM E X AME X AM E X AS X XT R A 1 69.4 29. 8 25. 2 -1. 0 -14.8% NYS E R TS BS E XT RA OT CN O TSX 1 60.1 19. 8 21. 0 -1. 6 -15.6% CM T S XV KLS E OT CP K AI M T S XV 1 46.3 17. 5 9. 5 -6. 5 -27.9% B SE H LS E O TC B B T S XV TSX O T CP K 1 29.8 12. 0 6. 8 -9. 7 -31.8% N as da qC M BS E TS X V AS X T S XV O T CB B 1 22.5 11. 2 5. 7 -11. 4 -38.3% OS E AS X AS X HLS E N a sdaqC M AM E X 1 19.8 10. 6 2. 0 -12. 7 -50.6% A IM KLS E O TC P K OT CB B HLS E O T CN O 1 9.2 9. 2 2. 0 -16. 1 #DI V /0! OM N asdaqC M Na s daqC M OT CN O N a sdaqG M AI M 1 5.0 5. 0 0. 2 -26. 5 #DI V /0! R TS AI M AIM AI M OT CP K N asdaqC M 1 0.2 0. 2 0. 1 -52. 5 #DI V /0! K LS E OT CN O O TC NO N a sda qC M OT CB B H LS E 92 39,696.1 431.5 145.0 2,710.4 6.9% G rand To tal G rand T otal G rand Total G rand T otal G r and T otal G rand T otal Figure 22. Comparison by Exchange Source. Capital IQ
    • Page 17 Financing - Last Three Months (US$ m) Mo nth Co mpany N ame C ou ntry Angel/S eed Debt financ in g P IPE S eries A S eries B S eries C S eries D S eries E G rand Total US A 35. 0 35. 0 F eb-09 Twitter S outh A fric a 20.0 20. 0 S ynthas ite US A 18. 0 18. 0 Tremor Media Offerpal Media US A 15.0 15. 0 UK 13.5 13. 5 Imagini US A 12. 5 12. 5 E mergent G ame Tec h no lo gies Outbrain I srael 12.0 12. 0 F rance 9. 0 9. 0 Tvtrip C hina 6. 0 6. 0 Tongxue US A 5.6 5. 6 Oodle US A 4. 3 4. 3 TextDigger US A 4. 2 4. 2 OneS pot C ana da 4. 0 4. 0 Mixpo Fetc h Dog US A 4. 0 4. 0 N etherlands 4. 0 4. 0 Virtual Fairgro un d US A 3. 0 3. 0 7 B illio n P eople FamilyL in k.c o m US A 2. 9 2. 9 US A 2. 3 2. 3 Wh is tleB ox UK 2. 0 2. 0 Mendeley Outright US A 2. 0 2. 0 I srael 1. 6 1. 6 Tvinc i US A 1. 4 1. 4 Filtrbo x N etherlands 1. 3 1. 3 MMO Life Cake Finan c ial US A 1. 3 1. 3 UK 0. 7 0. 7 fav.o r.it F eb-09 T otal 13.3 24.8 76.4 58. 6 12. 5 185. 5 China Kaixin001.com 20.0 20. 0 Mar-09 US A 15. 0 15. 0 Vidyo US A 12. 5 12. 5 Bu zz net LendingClu b US A 12.0 12. 0 US A 12. 0 12. 0 S endMe Inc . US A 10.5 10. 5 Auditu de G lam Media US A 10. 0 10. 0 US A 10.0 10. 0 S uperS ec ret UK GoViral 8. 8 8. 8 US A 5.5 5. 5 G reys tripe US A 5. 0 5. 0 OMG P OP US A 4. 1 4. 1 Apture US A 4. 0 4. 0 S imu lmedia Tynt C ana da 3. 9 3. 9 US A 3. 2 3. 2 AnyS o urc e Media US A 3. 1 3. 1 P ixaz za Bit.ly US A 2. 0 2. 0 US A 2. 0 2. 0 Hu nc h US A 2. 0 2. 0 S po rts Compos ite DE Adu ltS pac e US A 1. 3 1. 3 N etherlands 1.3 1. 3 Myngle US A 0. 8 0. 8 33Ac ro s s Argentina 0.6 0. 6 Three Melo ns Mar-09 T otal 1.3 1.3 0.6 41.1 50.3 43. 0 12. 0 10. 0 159. 5 US A 20.0 20. 0 A pr-09 Co llec tive Media France GOOM Radio 16.0 16. 0 US A 8.0 5. 0 13. 0 The R ubic o n Projec t US A 10.0 10. 0 Cellu fun US A 8. 1 8. 1 S c anS c out Do ubleT wis t US A 5. 0 5. 0 US A 4. 5 4. 5 S oc ialtext USA Mixercast 4.1 4. 1 TubeMogu l US A 3. 0 3. 0 Canada Tribal Nova 2. 5 2. 5 US A 1. 4 1. 4 S oc ialc as t S c an & Target F rance 1. 3 1. 3 A pr-09 T otal 9.4 8.0 23.7 42.5 4.1 4.5 92. 2 Figure 23. Financing, Last Three Months Source. Company reports
    • 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 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 C ellu fun , LL C 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. 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 C ollec tive Media, Inc . 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 . 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 do ubleT wis t Corpo ration 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. F rance www. goomradio.c om G o O n Medi a opera tes digita l radio sta tions . I t broa dc asts music , wea ther, news , a nd music news through I nternet. In addition, the c ompany G o On Media opera tes a community for interaction between the c reators of ra di os. T he c ompa ny was founded in 2007 a nd is ba sed in S aint C loud, F ra nc e. s t, I nc . provides s oc ial mark eting a pplic ation pla tform that ena bles c ontent pub lishers a nd a dvertis ers to rea ch a udienc es a cross the U nited S ta tes www. mixerc a st.com Mix erca Mixerc as t, In c . soc ia l W eb. It offers MC ast P latform that includes a s et of tools and s ervi ces to c reate, distribute, monetiz e, a nd track va rious types of social ma rk eting a pplic a tions, inc luding widgets, ma s h-ups, F a c ebook a nd M yS pac e apps, and portab le c ontent or bra nd experienc es. M ixerc ast, Inc . wa s formerly k nown a s Na noc ast L a bs, I nc . The compa ny wa s founded in 2005 and is ba s ed in S a n M a teo, C alifornia . F rance www. s cana ndta rget. c om S ca n & Target provides s oftwa re a s a serv ice solution for the ana lys is and filtering of tex t user genera ted content. I t offers its a na lys is S c an & Target solution for va rious a pplica tions, s uc h a s modera ting and monetiz ing us er generated content, routing and qua lity c ontrol, v alida ting a ds a nd listings , a nd populating cus tomer relations hip ma na gement da ta bases . T he compa ny provides its s olution in various platforms , suc h as Internet, mobile, a nd intera ctive televis ion for pub lishers of onl ine communities, modera ting s ervice providers , a nd suppliers of technology solutions . S ca n & Ta rget wa s founded in 2007 and is ba s ed in P utea ux, F rance. 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 S c anS co ut, In c. 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 . 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 S ocialcas t founded in 2005 a nd is ba s ed in Irv ine, C al ifornia . 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 S ocialtext In corporated 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 . G erma ny s oundc loud.c om S oundC loud L td. provides an online audio pla tform for recei ving, s ending, and distributing music for a rtis ts , record la bels , a nd other music S oundClou d L td. profes s iona ls. T he compa ny was founded in 2007 a nd is ba sed in B erlin, G erma ny . 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 R ubicon P roject, Inc . 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. C a nada www. triba lnova. com/en/ Triba l Nov a , I nc. dev elops a nd ma rk ets Internet s ites , online ga mes , intera ctive televis ion programs , a nd cellula r telephony c ontent for T ribal No va, In c. children. It produc es a n arra y of ga mes ranging from educ a tiona l pres chooler online ga mes , s uch a s Ca i llou to multiplayer online role pla yi ng game for teens, suc h as Ma gi Na tion. The compa ny opera tes at the internationa l level in E urope and N orth America . T riba l Nova , Inc . wa s founded in 2004 a nd is ba s ed in Montrea l, Ca nad a. 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 . T ubeMogul, Inc. 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
    • Page 19 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