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09 09 22 Web 2.0 Weekly
 

09 09 22 Web 2.0 Weekly

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    09 09 22 Web 2.0 Weekly 09 09 22 Web 2.0 Weekly Document Transcript

    • SOFTWARE & SERVICES 22 SEPTEMBER 2009 DAVID SHORE, CFA, MBA 416.860.6784 WEB 2.O WEEKLY david.shore@researchcapital.com Damian Wojcichowsky, CFA (Associate), 416.860.7652 HOW VALUABLE ARE UNIQUE VISITORS? T WIT T E R’ S V AL U E QU A D RU PL E S S IN C E F E B RU A R Y; DO E S S PI K E IN U S E R S J U ST IF Y T H E I NC R EA S E? Twitter is rumoured to be raising a new $50 million round of funding at a $1 billion valuation. The company most recently raised $35 million at a rumoured $250 million valuation in February. W hile the increase in value seems extraordinary, when looking at the valuation per unique visitor (UV), the increase is less impressive – from $29 to $42 (+47%). Note that we would of course prefer comparing valuation based on financial metrics such as cash flow or even revenue. However, Twitter has not yet started generating any revenue. Value per unique vis itor (UV) 1, 200, 000, 000 S ep 09 T witter, $42 L inkedin, $88 1, 000, 000, 000 800, 000, 000 P la xo B ebo, $22 Mint. com L inkedin (T ota l V a lua tion $) 600, 000, 000 F riendF eed T witter C lub P enguin T witter 400, 000, 000 B ebo C lub P enguin, $29 P eople Media F eb 09 S tumbleU pon T witter, $29 200, 000, 000 F riends R eunited Mint. com, $113 P la xo, $200 S tumbleU pon, $5 P eople Media , $20 F riendF eed, $48 - F riends R eunited, $2 (200, 000, 000) $(50) $- $50 $100 $150 $200 $250 (V a lue per U nique V is itor) B ubble s ize de note s numbe r of U V S ource : C ompany re ports , C ompe te .com Deal flow picks up: Total transaction value in the W eb 2.0 universe for September nearly doubled to $74.2 million, up from $37.4 million last week. Another 4 financings were announced this week, bringing the month-to-date total to 13 transactions averaging $5.7 million each (compared with 9 trades averaging $4.7 million last week). The largest transaction stands at $20 million for Ensequence (provider of software and services to manage interactive television content). Deal flow in prior months was as follows: August, $208.5 million, averaging $7.7 million over 27 deals; July, $191.4 million, averaging $5.5 million over 35 deals; and June, $204.7 million, averaging $4.9 million over 42 deals. Broad-based price improvement: Twenty-nine of the companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1) while twelve companies showed negative one-week returns. Volatile price swings continue for DigitalTown (OTCBB:DGTW ), rising 76% this week following a 14% decline the previous week. Frogster International (XTRA:FRG) experienced the largest decline at -8.8%. This report has been created b y Anal ysts that are emplo yed b y Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report. w w w . r e s e a rc h c a p i t a l . c o m T o ro n t o 4 1 6 . 8 6 0 . 7 6 0 0 Montreal 514.399.1500 Vancouver 604.662.1800 Calgary 403.265.7400 Regina 306.566.7550
    • Page 2 THE WEB 2.0 UNIVERSE Ninety public Web 2.0 companies: Our W eb 2.0 universe contains 90 companies, with a combined market cap of approximately $69 billion (Figure 1). The median market cap for the group is $49 million, with average trailing revenue of $161 million (median $54 million). The companies are also generally profitable, with a median EBITDA margin of 11.8%. On a valuation basis, the overall average is 5.4x trailing revenue (median 2.1x) and 13.2x trailing EBITDA (median 10.3x). Twenty of the companies have more than 500 employees. C omparable C ompany Analys is > Web 2.0 Trading C urrent US D Market US D L TM Total US D L TM Total E B ITDA TE V/L TM TE V/L TM C ompany Name L TM as of Ticker E xc hange C urrency HQ P ric e C ap ($m) R ev ($m) E B ITDA ($m) % R evenue E B ITDA E mployees Accelerize New Media, Inc. 6/30/2009 AC LZ OT C B B US D U nited S tates 0. 65 18. 2 4. 4 (3.7) -83. 3% 5.2x - 11 Actoz S oft C o. , Ltd. 6/30/2009 A052790 K OS E KRW S outh K orea 19, 950 142.6 107. 6 25. 6 23. 8% 1.0x 4. 3x NA AQ Interactive, Inc. 6/30/2009 3838 TS E JPY J apa n 52, 500 31. 0 64.2 (1.9) -2.9% 0.2x - NA As s ocia ted Media Holdings Inc. 6/30/2007 AS MH OT C P K US D U nited S tates 0. 01 0.6 0. 1 (2.3) NM 15. 6x - 3 B igs tring C orp. 6/30/2009 BS GC OT C B B US D U nited S tates 0. 02 1.1 0. 1 (1.5) NM 34. 6x - 4 B eta wave C orpora tion 6/30/2009 B W AV OT C B B US D U nited S tates 0. 07 2.0 9. 4 (12. 6) NM - - 51 B eyond C ommerce, Inc. 6/30/2009 B Y OC OT C B B US D U nited S tates 0. 17 7.9 11.7 (12. 8) NM 1.2x - 101 B right T hings plc 3/31/2009 AIM: B G T AIM GBP U nited K ingdom 0. 01 6.0 0. 0 (2.7) NM - - NA B roa dW ebAs ia Inc. 9/30/2008 BWBA OT C P K US D U nited S tates 0. 23 19. 5 0. 0 (4.6) NM - - 46 C DC C orp. 6/30/2009 C HIN.A Na s daqG S US D Hong K ong 2. 78 294.6 361. 6 25. 1 6.9% 0.8x 11.6x 2, 227 C hangyou. com Limited 6/30/2009 C Y OU Na s daqG S US D C hina 38.29 2, 106.0 241. 2 147. 2 61. 0% 7.6x 12.4x 628 C hina G ateway C orporation 9/30/2008 CGWY OT C P K US D U nited S tates 0. 02 0.3 6. 7 (6.6) -98. 9% 0.0x - 37 C hines e G amer Interna tional 6/30/2009 G T S M: 3083 GTS M TWD T a iwan 458 1, 187.8 61.6 34. 7 56. 2% 18. 1x 32.2x NA C LIC K E R Inc. 5/31/2009 C LK Z OT C B B US D U nited S tates 0. 01 0.4 2. 5 (1.2) -45. 8% 0.2x - 22 C ornerW orld C orporation 4/30/2009 CWR L OT C B B US D U nited S tates 0. 06 5.7 3. 9 NM NM 4.1x - 16 C yberplex Inc. 6/30/2009 T S X: C X TS X C AD C a nada 1 76. 6 90.5 9.8 10. 8% 0.6x 5. 8x NA DADA S pA 6/30/2009 C M: DA CM E UR Italy 6. 95 165.4 242. 6 31. 9 13. 1% 0.9x 6. 7x NA DXN Holdings B hd 5/31/2009 DX N K LS E MY R Malays ia 0. 61 39. 8 77.1 11. 1 14. 4% 0.7x 4. 9x NA Dibz International, Inc. NA DIB Z OT C P K US D U nited S tates 0. 00 0.0 NA NM NM - - NA DigitalP os t Interactive, Inc. 6/30/2009 DG LP OT C B B US D U nited S tates 0. 06 4.6 1. 0 (1.4) NM 6.7x - 7 DigitalT own, Inc. 5/31/2009 DG T W OT C B B US D U nited S tates 2. 64 72. 2 NM (2.5) NM - - 3 Dolphin Digital Media, Inc. 6/30/2009 DP DM OT C B B US D U nited S tates 0. 40 21. 5 0. 6 (3.4) NM 38. 6x - NA E olith C o. Ltd. 12/31/2008 A041060 K OS E KRW S outh K orea 875 52. 6 15.3 (3.6) -23. 6% 3.6x - NA E xtens ions , Inc. 6/30/2009 E XTI OT C P K US D U nited S tates 0. 25 11. 1 NM NM NM - - 2 F luid Mus ic C anada, Inc. 6/30/2009 T S X: F MN TS X C AD U nited S tates 1. 40 68. 0 5. 3 (5.1) -95. 2% 11. 4x - NA F rogs ter Intera ctive P ictures AG 6/30/2009 FR G XT R A E UR G ermany 17.13 63. 5 9. 7 (4.5) -47. 0% 6.4x - NA G ama nia Digital E nterta inment C o. , Ltd. 6/30/2009 6180 GTS M TWD T a iwan 51.70 242.1 140. 6 25. 1 17. 9% 1.6x 8. 7x NA G ameO n C o L td. 6/30/2009 3812 TS E JPY J apa n 100, 800 105.8 79.6 19. 5 24. 5% 0.4x 1. 7x NA G eoS entric O yj 6/30/2009 G E O 1V HL S E E UR F inla nd 0. 05 65. 9 5. 5 (17. 5) NM 12. 1x - 115 G iant Interactive G roup, Inc. 6/30/2009 GA NY S E US D C hina 8 1, 750.4 198. 5 124. 1 62. 5% - - 1, 570 G iga Media Ltd. 3/31/2009 G IG M Na s daqG S US D T a iwan 5. 57 303.7 183. 6 NM NM 1.3x - 751 G ravity C o., Ltd 6/30/2009 GR VY Na s daqG M US D S outh K orea 1. 95 54. 2 48.6 16. 5 33. 9% - - 469 G ree, Inc. 6/30/2009 T S E :3632 TS E JPY J apa n 9, 850 2, 394.2 151. 5 91. 0 60. 1% 15. 0x 25.0x NA G ungHo O nline E ntertainment, Inc. 6/30/2009 3765 OS E JPY J apa n 243, 000 302.3 116. 1 25. 8 22. 2% 2.3x 10.4x NA HanbitS oft, Inc. 6/30/2009 A047080 K OS E KRW S outh K orea 4, 050 73. 6 60.1 1.4 2.3% 1.0x 43.0x NA IAC /InterActiveC orp. 6/30/2009 IAC I Na s daqG S US D U nited S tates 20.63 2, 731.5 1, 392. 3 52. 7 3.8% 0.7x 18.8x 3, 200 IAS E nergy, Inc. 1/31/2009 IAS A.E OT C B B US D C a nada 0. 15 10. 6 0. 0 (0.8) NM - - NA is eemedia Inc. 3/31/2009 IE E T S XV C AD C a nada 0. 09 4.3 1. 6 (5.1) NM 2.1x - NA J umbuck E ntertainment Limited 6/30/2009 AS X: J MB AS X AU D Aus tralia 0. 40 16. 8 16.6 7.1 42. 8% 0.6x 1. 5x 79 K AB Dis tribution Inc. 6/30/2009 T S X: K AB TS X C AD C a nada 0 0.6 68.4 4.0 5.8% - - NA K ings oft C o. Ltd. 6/30/2009 3888 S E HK HK D C hina 8 1, 141.2 139. 1 61. 4 44. 2% 8.3x 18.7x 2, 271 Lingo Media C orpora tion 6/30/2009 T S XV : LM T S XV C AD C a nada 1. 00 11. 5 1. 2 (1.9) NM 8.8x - NA LiveW orld Inc. 6/30/2009 LV W D OT C P K US D U nited S tates 0. 05 1.5 10.6 (0.1) -1.2% 0.0x - NA LookS mart, Ltd. 6/30/2009 LO O K Na s daqG M US D U nited S tates 1. 28 21. 9 56.8 (4.4) -7.8% - - 90 Magnitude Information S ys tems Inc. 6/30/2009 MAG Y OT C B B US D U nited S tates 0. 01 4.5 0. 1 (2.5) NM - - 14 Mixi, Inc. 6/30/2009 2121 TS E JPY J apa n 599000.00 1, 002.2 132. 8 44. 8 33. 8% 6.7x 19.7x NA Modern T imes G roup Mtg AB 6/30/2009 MT G B OM SEK S weden 312.50 2, 974.2 1, 982. 6 304. 6 15. 4% 1.8x 11.7x 2, 969 MO K O .mobi Limited 12/31/2008 MK B AS X AU D Aus tralia 0. 07 5.2 1. 2 (2.6) NM 3.2x - NA Myriad G roup AG 12/31/2008 MY R N SWX C HF S witzerland 4. 46 92. 0 40.0 0.8 1.9% 2.4x - 405 NE O W IZ G ames C orporation 12/31/2008 A095660 K OS E KRW S outh K orea 42000. 00 732.8 205. 2 55. 1 26. 8% 3.5x 13.1x NA NetDragon W ebS oft, Inc. 6/30/2009 777 S E HK HK D C hina 6 394.2 89.3 25. 7 28. 7% 2.9x 9. 9x 2, 426 Neteas e.com Inc. 6/30/2009 NT E S Na s daqG S US D C hina 43.79 5, 667.6 472. 4 297. 4 63. 0% - - 3, 109 NeuLion Incorporated 6/30/2009 T S X: NLN TS X C AD C a nada 0. 93 98. 3 21.5 (13. 0) -60. 3% 4.1x - 237 NeXplore C orporation 6/30/2008 NX P C OT C P K US D U nited S tates 1 30. 7 0. 7 (6.2) NM 49. 2x - NA Ngi G roup Inc. 6/30/2009 2497 TS E JPY J apa n 26750. 00 36. 0 90.3 6.7 7.4% - - NA Northgate T echnologies Limited 6/30/2009 590057 BSE INR India 42.65 31. 0 82.8 (41. 4) -50. 0% 0.4x - NA O pen T ext C orp. 6/30/2009 OT E X Na s daqG S US D C a nada 39.45 2, 215.1 785. 7 205. 1 26. 1% 2.9x 10.9x 3, 411 O penwave S ys tems Inc. 6/30/2009 OP W V Na s daqG S US D U nited S tates 2. 70 225.4 191. 7 4.9 2.6% 0.6x 23.8x 590 P erfect W orld C o. , Ltd. 6/30/2009 PWR D Na s daqG S US D C hina 43.98 2, 163.0 255. 7 142. 2 55. 6% 0.7x 1. 2x 2, 096 P NI Digital Media Inc. 6/30/2009 T S XV : P N T S XV C AD C a nada 1. 89 59. 9 21.2 2.3 11. 0% 2.7x 24.9x NA Q uepa s a C orp. 6/30/2009 QP S A OT C B B US D U nited S tates 2 22. 1 0. 2 (10. 6) NM - - 74 O AO R B C Information S ys tems 12/31/2007 R BCI R TS US D R us s ia 1. 16 160.9 156. 2 20. 4 13. 1% 0.0x 0. 3x NA S handa Intera ctive E ntertainment Ltd. 6/30/2009 S NDA Na s daqG S US D C hina 53.53 3, 574.1 629. 0 296. 7 47. 2% - - 3, 124 S hutterfly, Inc. 6/30/2009 S F LY Na s daqG S US D U nited S tates 17.71 450.8 218. 6 27. 3 12. 5% 1.8x 14.2x 514 S K C ommunications C o. , Ltd. 12/31/2008 A066270 K OS E KRW S outh K orea 9310.00 323.4 190. 8 12. 4 6.5% 1.7x 26.1x NA S NAP Interactive, Inc. 6/30/2009 S TVI OT C B B US D U nited S tates 1 5.4 3. 5 0.9 27. 0% 1.1x 4. 0x 11 S NM G loba l Holdings 9/30/2008 S NMN OT C P K US D U nited S tates 0. 00 0.0 2. 0 (0.7) -34. 8% 1.1x - 33 S ocial Media V enures , Inc. 12/31/2008 S MV I OT C P K US D U nited S tates 0 0.0 0. 1 (0.1) -60. 6% 4.5x - NA S ocialwis e, Inc. 6/30/2009 S C LW OT C B B US D U nited S tates 0. 58 25. 7 0. 0 (5.6) NM - - NA S ohu. com Inc. 6/30/2009 S O HU Na s daqG S US D C hina 68.86 2, 639.7 485. 1 209. 6 43. 2% 4.4x 10.2x 3, 197 S park Networks , Inc. 6/30/2009 LO V AME X US D U nited S tates 2 45. 3 50.5 10. 8 21. 3% 0.9x 4. 0x 183 S pectrumDNA, Inc. 6/30/2009 S P XA OT C B B US D U nited S tates 0 10. 7 0. 1 (2.5) NM - - 7 T encent Holdings L td. 6/30/2009 700 S E HK HK D C hina 128 29, 985. 0 1, 391. 6 680. 3 48. 9% 23. 7x 48.4x 6, 421 T he P arent C ompa ny 8/2/2008 K IDS .Q OT C P K US D U nited S tates 0. 01 0.2 112. 0 (13. 5) -12. 0% 0.2x - 347 T he9 Limited 12/31/2008 NC T Y Na s daqG S US D C hina 8. 46 212.3 250. 6 85. 5 34. 1% - - 1, 626 T heS treet. com, Inc. 3/31/2009 TS CM Na s daqG M US D U nited S tates 2. 72 83. 2 67.0 1.9 2.9% 0.3x 9. 6x 310 T ota l S port O nline AS 3/31/2006 T OS O O T C NO NOK Norway 0. 03 0.1 2. 3 (1.1) -50. 6% 4.6x - 16 T ree.C om, Inc. 6/30/2009 TR E E Na s daqG M US D U nited S tates 7. 79 84. 2 216. 6 (0.7) -0.3% 0.4x - 700 U nis erve C ommunications C orp. 2/28/2009 T S XV : U S S T S XV C AD C a nada 0. 04 0.9 24.1 0.1 0.2% 0.2x - NA U nited O nline Inc. 6/30/2009 U NT D Na s daqG S US D U nited S tates 8. 26 692.5 949. 8 203. 2 21. 4% 1.0x 4. 7x 1, 469 U OMO Media, Inc 4/30/2009 U O MO OT C B B US D C a nada 0 10. 5 0. 9 (0.5) -53. 2% 12. 6x - NA V alueC lick Inc. 6/30/2009 V C LK Na s daqG S US D U nited S tates 13 1, 109.5 563. 6 99. 0 17. 6% 1.7x 9. 8x 1, 189 V OIS , Inc. 6/30/2009 V O IS OT C B B US D U nited S tates 0 2.5 0. 0 (1.0) NM - - 4 W ebzen Inc. 6/30/2009 W ZE N Na s daqG M US D S outh K orea 3. 05 36. 2 22.9 2.3 9.9% - - 328 W izzard S oftware C orpora tion 6/30/2009 W ZE AME X US D U nited S tates 0. 46 23. 2 5. 3 (4.5) -84. 9% 4.6x - 110 W orlds . com Inc. 6/30/2009 W DDD OT C B B US D U nited S tates 0. 10 5.2 0. 1 (0.7) NM - - 1 W ynds torm C orporation NA W Y ND OT C P K US D U nited S tates 0. 10 1.8 NA NM NM - - NA XING AG 6/30/2009 O 1B C XT R A E UR G ermany 32.75 253.5 59.0 17. 0 28. 8% 3.4x 11.8x 246 Y eda ngO nline C orp. 12/31/2007 A052770 K OS E KRW S outh K orea 9020.00 112.1 56.8 12. 2 21. 6% 2.1x 9. 9x NA Y nk K orea Inc. 12/31/2008 A023770 K OS E KRW S outh K orea 4215.00 18. 7 11.8 1.2 10. 5% - - NA High 29, 985. 0 1,982. 6 680.3 63. 0% 49. 2x 48.4x 6,421 Low 0.0 0.0 -41.4 -98. 9% - - 1 Average 769.5 160.8 38.6 5.2% 5.4x 13.2x 901 Median 48. 9 53.7 1. 2 11. 8% 2.1x 10.3x 242 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 ) Deal flow picks up: Total transaction value in the W eb 2.0 universe for September nearly doubled to $74.2 million, up from $37.4 million at time of publication last week. This week has brought another four financings to the sector, bringing the month-to-date total to thirteen transactions averaging $5.7 million each (compared with our month-to-date average of $4.7 million last week over nine transactions). The largest transaction is a $20 million financing of Ensequence (provider of software and services to manage interactive television content). The Ensequence trade exceeds the previous transaction value high in September set by the $9 million financing of InXpo (Virtual Worlds). In comparison, total capital raised in August was $208.5 million, averaging $7.7 million (27 deals); for July (35 deals) $191.4 million, averaging $5.5 million; and June (42 deals) was $204.7 million (averaging $4.9 million). Financing Activity Last Twelve Months 400.0 18.0 16.2 16.0 350.0 14.6 14.0 300.0 12.0 250.0 9.7 10.0 (US$m) (US$m) 200.0 7.9 8.0 7.0 7.0 7.1 6.5 6.6 150.0 6.2 5.7 5.5 6.0 4.9 100.0 4.0 50.0 2.0 0.0 0.0 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 *May-09 includes $200m FB investment Total Average Figure 2. Financings, Last Twelve Months Source. Company reports
    • Page 4 Quiet After Mint: Following Intuit’s acquisition of Mint.com for $170 million last week, financing and M&A headlines were more muted with the $20 million series D financing of Ensequence making the top headline in the W eb 2.0 space. Fwix, a local news search application developer, announced a $2.8 million series A raise. NextBio, a life sciences collaboration products company, announced $8.0 million in series C financing. Finally, Mocapay, a mobile payments services concern, is raising $3 million in a series C financing. For additional details on financings, see Figures 23 and 24 (at end of note). Financing & M/A Summary - Last Three Months 200.0 180.0 160.0 140.0 120.0 Sep-09 (US$m) 100.0 Aug-09 Jul-09 80.0 60.0 40.0 20.0 0.0 Fwix xoopit Pandora Media MediaMath QuickPlay Media InXpo NextBio HiveLive Invodo Boxee Polyvore Nexage Z2Live ProtonMedia iLoop Mobile Greystripe iSyndica Masher Media Mocapay Roblox MOG StyleCaster Mint Quikr India Pvt. Ltd. RightsFlow CoTweet Skype People Media Turbine Friends Reunited AdLink Internet Media Ensequence iLike Ning Zoove RichRelevance Traffiq Edo Interactive Jobvite ConnectEdu SBNation InnoCentive Balihoo YuMe Fanbase OurStage Scoreloop Busca Tremor Media Aloqa Lat49 Plista FourSquare EduFire ChessCube Thread Clikthrough Cognitive Match Limited Cellufun BookFresh Super Rewards NowPublic OPEN Sports network TweetDeck MashLogic Tiny Pictures Linksify Metaversum Kontera Ltd. OneRiot KODA iSocket People Capital Comunitae Causes Outspark Acquia, Inc iMemories Conduit Labs Gigpark Bill.com Tributes.com Smith & Tinker Jambool Riot Games Akademos Figure 3. Capital Market Activity, Last Three Months Source. Company reports
    • Page 5 Advertising remains the most active sector: Advertising-related companies continue to see the most activity by number of transactions (10), followed by Social Networks (9), and Gaming (8) (Figure 4). The $2.0 billion acquisition of Skype skews the dollars transacted to the SMS/Voice segment, while the $170 million acquisition of Mint brings the Vertical Communities segment to the second highest total. Capital Market Activity by Sector - Last Three Months 200.0 180.0 160.0 140.0 120.0 (US$m) 100.0 80.0 60.0 40.0 20.0 2,025.0 197.5 100.1 98.5 85.0 80.0 73.9 64.5 40.0 38.2 37.3 20.7 13.2 12.5 12.0 10.0 8.6 8.0 8.0 7.0 5.0 4.1 4.0 3.2 2.8 1.0 0.5 0.5 0.0 Comment/Reputation Communities Gaming Online Dating Online Calendar Mobile Online Learning Enterprise Media Collaboration Microblog Online Lending Music SMS/Voice Infrastructure Advertising/Mobile Blog Search Classified Mobile Ad Social Networks Virtual Goods Advertising Virtual World Video Crowdsourced Aggregation Analytics Vertical Content # companies 1 5 10 8 9 1 5 5 5 5 3 5 1 1 3 3 2 1 1 1 1 1 2 1 1 1 1 1 Figure 4. Capital Market Activity, by Sector, Last Three Months Source. Company reports
    • Page 6 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 ) Web 2.0 index continues to outpace NASDAQ recovery: Our W eb 2.0 index (market-cap weighted) essentially mirrored the performance of the NASDAQ composite index from mid-2008 until earlier this year. However, the index has recently had a much stronger recovery relative to the NASDAQ index (Figure 5). Web 2.0 Index Price Performance 180 160 140 120 100 80 60 40 20 0 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 5/4/2009 5/18/2009 6/1/2009 6/15/2009 6/29/2009 7/13/2009 7/27/2009 8/10/2009 8/24/2009 9/7/2009 9/21/2009 Index: Web 2.0 (Market Cap) ^COMP - Share Pricing Figure 5. Web 2.0 Price Performance Source. Capital IQ
    • Page 7 Broad-based price improvement: Twenty-nine of the companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1) (Figure 6) while twelve companies showed negative one-week returns. Volatile price swings continue for DigitalTown (OTCBB:DGTW ), rising 76% this week following a 14% decline the previous week. Frogster International (XTRA:FRG) experienced the largest decline at -8.8% for the week. 1 Week P rice P erformance DigitalTow n, Inc. 76.0% S hutterf ly , Inc. 19.2% G igaMedia Ltd. 15.3% Gravity Co., Ltd 14.0% V alueClick Inc. 13.8% G ama nia Digital Entertainment 12.5% A c toz S oft Co., Ltd. 10.8% Chines e G amer Internationa l 10.6% Open Tex t Corp. 10.6% LookS mart, Ltd. 9.4% Modern Times G roup Mtg A B 7.9% NEOWIZ G ames Corporation 7.4% IA C/InterA ctiveCorp. 6.3% United Online Inc. 5.9% S ohu.com Inc. 4.6% S handa Interactive 4.1% Y nk K orea Inc. 3.8% Webz en Inc. 3.7% The9 Limited 3.5% S K Communications Co., Ltd. 3.3% Neteas e.c om Inc. 2.9% G iant Interactive G roup, Inc. 2.7% TheS treet. com, Inc. 2.6% Eolith Co. Ltd. 2.3% Perf ect World Co., Ltd. 1.3% S park Netw orks , Inc. 0.9% Tencent Holdings Ltd. 0.9% PNI Digital Media Inc. 0.5% CDC Corp. 0.4% Lingo Media Corporation 0.0% Cy berplex Inc. 0.0% X ING A G -0.3% Tree.Com, Inc. -0.5% Quepas a Corp. -0.6% My riad G roup A G -0.9% NetDragon WebS oft, Inc. -1.4% K ings of t Co. Ltd. -1.9% Y edangOnline Corp. -2.0% DA DA S pA -2.3% HanbitS oft, Inc. -3.6% Changy ou.com Limited -5.6% Openw ave S y s tems Inc. -5.9% Frogs ter Interac tive Pictures A G -8.8% -0.2 -0.1 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 Figure 6. 1-Week Price Performance Source. Capital IQ
    • Page 8 P U B L I C C O M P A N Y I N D U S T R Y N E W S (P A R T N E R S H I P S , F I N A N C I A L R E S U L T S , N E W P R O D U C T S ) K ey Developments Compa ny Headline Notes S hutter fly, Inc . (Nas da qGS : S F LY ) S hutte rfly Inc . Appoints B ria n S we tte to the B oa rd O n S eptember 8 , 20 09, B rian S wette wa s appointed to the B oa rd of D irec tors of S hutterfly Inc . Mr. S wette will a ls o s erv e on the A udit C ommittee of the B oa rd. M r. S we tte has s erved on the B oard of B urge r K ing s ince 2 003, a nd be ca me Non -E xe cutive C ha irma n in 20 06. Mr. S wette a ls o s erv es on the B o ard of Dire ctors for J amba Ju ice, C B L P artners , F R S C o mpa ny a nd C a re . com. S hutter fly, Inc . (Nas da qGS : S F LY ) Jo hn P ois son to J oin in S hutterfly, Inc S hutterfly I nc . an nounc ed tha t it has a cquired T iny P ic tures . T iny P ictures 's found er and C E O , J ohn P ois s on, a long with the T iny P ictures te am, will join S h utte rfly. C or nerW or ld C or poration C ornerW orld C orpora tion R eports E a rning s R es ults for C orn erW orld C orpora tion reported earnings res ults for the firs t quarter e nde d J uly 3 1, 2 009 . F or th e quarter, the compa ny reported net los s (O TC B B : C W R L ) the F irs t Q ua rte r E nded J uly 31 , 20 09 of $33 4, 5 55, down $107 , 57 1 for the sa me qua rter the prev ious ye a r 20 08. G iant Inte rac tiv e G roup, Inc . Gian t Interac tive Group I nc. A ppoints E rns t & Y oung Hua G iant Inte ra ctiv e G roup Inc. 's sha reho lde rs res olutions a dopted a t its a nnua l gene ra l mee ting of s hareholders held in S ha ngha i on (NYS E : GA) Ming a s the C ompa ny's I ndependent Auditors S eptember 11 , 20 09. T he c ompa ny 's s hareholders a ppo inted E rns t & Y oung Hua M ing as th e compa ny' s ind epe nden t au ditors for the f is c al year e nding D ecember 31 , 20 09. C M C a pita l Inv es tments ; Myri ad G roup My riad G roup A G ( S W X : M Y R N ) a c quire d Xumii, Inc. Myria d G roup AG (S W X: MY R N ) ac qu ired X umii, Inc . on S eptember 15 , 20 09. T he f ina ncia l terms of the de a l were not dis c los ed. A ll 17 AG (S W X : MY R N); S outhe rn C ros s employees o f Xu mii will be pa rt of Myria d G roup. T he tra ns ac tion is not ex pec te d to ha ve a ma teria l impa ct to Myria d re venue or E B IT DA for V enture Par tners ; Xumi i, Inc. the full fis ca l yea r 2009 . Myria d G roup AG (S W X: MY R N ) completed the ac quis ition of Xumii, Inc. on S eptember 15 , 20 09. L ookS mart, L td. (Nas da qG M: L O O K ) S ta ce y G ia malis to Le a ve L ook S ma rt L td. as G ene ra l O n S eptember 9 , 20 09, S ta cey G iama lis , G eneral C ouns el a nd S enior V ice P res ident, a nd L ook S ma rt Ltd. determined tha t Ms . G ia malis C ounse l a nd S en ior V ice P re sident would s epara te from the C o mpany ef fec tive S e ptembe r 15, 200 9. IA S E ne rgy, I nc . (O T C B B : IA S A.E ) IAS E ne rgy, Inc. a nnou nc ed delay ed 1 0-Q filing O n 0 9/1 5/20 09, IA S E ne rgy, Inc . a nno unc ed tha t the y will be una ble to file the ir next 10-Q by the de a dline requ ired by the S E C . K ings oft C o. L td. (S E HK : 38 88) K ings oft C o. Ltd. R e ports E arnings R e sults f or the F irs t K ings oft C o. Ltd. reporte d ea rnings res ults for th e first ha lf of 20 09. F or the firs t ha lf, the company reaped total revenues of C NY 476 million, Ha lf of 200 9 ris ing 37% yea r on yea r. G ross profit arriv ed a t C N Y 417 million, jumping 40% from firs t half of 200 8. G ros s ma rgin reache d 88 % . IA S E ne rgy, I nc . (O T C B B : IA S A.E ) IAS E ne rgy D ele ted F ro m OT C B B IA S E nergy, Inc' s common s toc k ha s been delete d from O T C B ulletin B oard effe ctiv e S eptember 16 , 20 09 on a ccount of its fa ilure to comply with N AS D 6 530. T he compa ny ha s been added to NB B . NetDr agon W e bS oft, Inc. (S E HK : 77 7) NetDra gon W ebS oft Inc . La unches Demon R ising Ne tDragon W e bS o ft I nc. an nou nc ed the la unc h of Demon R is ing, a n ew C h ine se ex pans ion pac k for its fla gs hip E u demons O nline ga me. De mon R is ing marks the fifth E P re lea s ed f or E udemons O n line s inc e the g ame wa s initia lly la unc hed in J une 200 6, a nd will introduce a s erie s of six co mpre hens ive insta nc ed a ctivities . IB 3 Network s , Inc . (O T C B B : IB NW ) IB 3 Networks I nc . T ermin ates J ulia C ooper a s V P of E ffe ctive S eptember 14 , 20 09, Ju lia C oope r was termina ted as V P of S ales a nd O pe ra tions of IB 3 Ne twork s Inc. S a les a nd O pera tions T ence nt Holdings Ltd. (S E HK : 700) T enc ent A ggres s ively S couting F or O verse a s M& A T he P re sident of T ence nt H olding s Ltd. , C hi-ping L a u s a id that the compa ny will a cc elerate the pace of its merge a nd a cquis ition and may cond uct direct inves tment a nd joint inve stme nt to ex pa nd overs eas . L au noted tha t Te nc ent will ke ep scouting for pote ntia l foreign M& A opportunities a nd h as a lrea dy o pene d repre se ntative o ffice s in V ietna m, India , S outh K orea, a nd the U. S . T e nc ent would lik e to s eiz e opportunities in the g loba l fina ncia l meltdown and pa rtner with other c ompanie s in re la ted f ie lds tha t ha s grea t potentia l, sa id La u. Howe ve r, T ence nt will not lower its crite ria for potentia l M &A de a ls a t a time when mo re and more M& A opportun ities a re being thrown up bec aus e of the global fin ancial crisis . T he firm will e xa mine the fe a s ibility o f the de a ls by ev alua ting its o wn te chnology , tale nt a nd bus in es s performance , ac cording to L au. L ogic a ; O pen T ext C orp. Open T e xt C orp. E x tends P a rtners hip with L ogica O pe n T ex t C orp. ha s extende d its pa rtners hip with L ogica , with L ogic a joining th e O pen T ex t G lo ba l P a rtne r P rogra m for S A P C ompe tence . (Nas da qG S : O T E X ) Under th e ag re ement, Logica will deliv er a nd s upport the O pe n T ex t E nte rpris e C ontent Ma nagement (E C M) s uite for S A P s olutions. T he compa nie s, togethe r with S AP , will colla bora te on the implementa tion o f joint mark et o fferings , bas ed on the O pen T e xt E C M s uite for S A P s olutions , in co njunction with a range of cons ulting, s ys tems integra tion, a pplica tio n mana gement and manag ed operation s ervices from Lo gica . O penwav e S ys tems Inc . Openwa ve S ys tems Inc . - C onfe re nce P res entation C a ll T o pres ent outlining c ompa ny's vis ion for produc ts , ma rk ets a nd growth stra tegy (Nas da qG S : O P W V) T re e.C om, Inc . (N as daqG M: T R E E ) T re e.C om I nc. an d M ortech I nc. R e solve L aws uit T ree. C om Inc. and Morte ch Inc. hav e res olv ed their laws uit to the mutu al s atisf ac tio n of both partie s, a nd the la ws uit ha s been dismiss ed. Dolby L a boratori es Inc. (NY S E : DL B ); Gian t Interac tive to U tiliz e Dolby(R ) A xon 3D V oice G iant Inte ra ctiv e G roup Inc. a nnounced tha t it will integra te Dolby(R ) A xon, th e 3D voice technolog y developed by Do lby L a bora tories I nc. , G iant Inte rac tiv e G roup, Inc . T echnology in ZT Online into its f la gs hip ma s sively multipla ye r online role playin g ga me (MMO R P G ) ZT O nline . Z T O nline will incorporate Dolby A xon 3D voice to MO K O .mobi L i mited (AS X : MK B ) MO K O .mobi L imited R eports R eturn on E qu ity R e sults MO K O .mobi Limite d (L oo p M obile) reported return on e quity res ults for th e year e nded J une 30, 200 9. for the ye a r, th e compa ny re ported for the Y ea r E nde d J un e 30 , 20 09 los s on equity of 271 . 2% and los s on as s ets o f 18 4. 3% c ompared to los s on equity of 18 3. 5% and lo ss o n as s ets of 1 50. 4 % for the sa me Figure 7. Key Developments Source. Capital IQ
    • Page 9 VALUATION Online Gaming companies lead market-cap charts: Fifteen companies in our W eb 2.0 universe top US$1 billion in market capitalization (Figure 8), up from thirteen last week. Fifty-eight of the ninety-one companies have market caps under US$100 million, with 37 under US$10 million. Online gaming companies dominate the top of the list, led by Tencent Holdings with a market cap near US$30 billion. Market C ap (US D m) Tenc ent Holdings Ltd. 29985.0 Neteas e.c om Inc . 5667.6 S handa Interac tive Entertainment 3574.1 Modern Times Group Mtg A B 2974.2 IA C/InterA ctiv eCorp. 2731.5 S ohu.c om Inc . 2639.7 G ree, Inc . 2394.2 Open Tex t Corp. 2215.1 Perf ec t W orld Co., L td. 2163.0 Cha ngyou. com L imited 2106.0 Gia nt Interac tive Group, Inc . 1750.4 Chines e G amer Interna tional 1187.8 K ings of t Co. Ltd. 1141.2 V a lueClic k Inc . 1109.5 Mix i, Inc . 1002.2 NEOWIZ G ames Corpora tion 732.8 United Online Inc . 692.5 S hutterf ly, Inc . 450.8 NetDragon WebS oft, Inc . 394.2 S K Communic ations Co., Ltd. 323.4 G iga Media Ltd. 303.7 GungHo Online Entertainment, Inc . 302.3 CDC Corp. 294.6 XING A G 253.5 Ga ma nia Digita l Enterta inment Co., 242.1 Openw a ve S y s tems Inc . 225.4 The9 L imited 212.3 DA DA S pA 165.4 OA O R B C Information S y s tems 160.9 A ctoz S of t Co., Ltd. 142.6 Y edangOnline Corp. 112.1 Ga meOn Co Ltd. 105.8 NeuL ion Incorpora ted 98.3 My ria d Group A G 92.0 Tree. Com, Inc . 84.2 TheS treet.c om, Inc . 83.2 Cy berplex Inc . 76.6 HanbitS oft, Inc . 73.6 Digita lTow n, Inc . 72.2 Fluid Mus ic Canada, Inc . 68.0 GeoS entric Oyj 65.9 Frogs ter Interac tive Pic tures A G 63.5 PNI Digita l Media Inc . 59.9 Grav ity Co., Ltd 54.2 Eolith Co. Ltd. 52.6 S pa rk Netw orks , Inc . 45.3 DXN Holdings B hd 39.8 Webz en Inc . 36.2 Ngi Group Inc . 36.0 A Q Intera ctiv e, Inc . 31.0 Northgate Tec hnologies L imited 31.0 NeXplore Corpora tion 30.7 S ocia lw is e, Inc . 25.7 Wiz z a rd S oftw are Corpora tion 23.2 Quepa s a Corp. 22.1 LookS mart, L td. 21.9 Dolphin Digita l Media, Inc . 21.5 B roa dWebA s ia Inc . 19.5 Y nk K orea Inc . 18.7 A c celeriz e New Media, Inc . 18.2 J umbuc k Entertainment L imited 16.8 Lingo Media Corpora tion 11.5 Ex tens ions , Inc . 11.1 S pec trumDNA , Inc . 10.7 IA S Energy, Inc . 10.6 UOMO Media , Inc 10.5 B eyond Commerc e, Inc . 7.9 B right Things plc 6.0 CornerWorld Corpora tion 5.7 S NA P Intera ctiv e, Inc . 5.4 MOK O.mobi L imited 5.2 Worlds .c om Inc . 5.2 Digita lPos t Intera ctiv e, Inc . 4.6 Ma gnitude Inf orma tion S y s tems Inc . 4.5 is eemedia Inc . 4.3 V OIS , Inc . 2.5 B eta w av e Corpora tion 2.0 W ynds torm Corpora tion 1.8 LiveWorld Inc . 1.5 B igs tring Corp. 1.1 Unis erv e Communic ations Corp. 0.9 K A B Dis tribution Inc . 0.6 A s s oc iated Media Holdings Inc . 0.6 CL ICK ER Inc . 0.4 China Ga tew a y Corpora tion 0.3 The Parent Company 0.2 Tota l S port Online A S 0.1 S NM Globa l Holdings 0.0 Dibz Interna tiona l, Inc . 0.0 S oc ia l Media V enures , Inc . 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
    • Page 10 TEV/Revenue (LTM) averages 5.4x: The overall average TEV/Revenue (LTM) multiple for our group is 5.4x (vs. 5.2x last week) (Figure 9). Three companies trade at more than 25x revenue – Bigstring Corp. (OTCBB:BSGC) at 34.6x, Dolphin Digital Media, Inc. (OTCBB:DPDM) at 38.6x, and NeXplore Corporation (OTCPK:NXPC) at 49.2x. The median of 2.1x is up from 1.7x last week. Note that we exclude multiples greater than 50x. Twenty-seven companies have multiples under 1.5x. T E V/L T M R evenue (x) 60. 0 49.2 50. 0 38.6 40. 0 34.6 30. 0 23.7 20. 0 18.1 15.0 15.6 12.6 11.4 12.1 10. 0 8.3 8.8 A vera ge, 5.4 6.4 6.7 6.7 7.6 5.2 3.5 3.6 4.1 4.1 4.4 4.5 4.6 4.6 2.7 2.9 2.9 3.2 3.4 1.5 1.6 1.7 1.7 1.8 1.8 2.1 2.1 2.3 2.4 0.2 0.2 0.2 0.3 0.4 0.4 0.4 0.6 0.6 0.6 0.7 0.7 0.7 0.8 0.9 0.9 1.0 1.0 1.0 1.1 1.1 1.2 1.3 0. 0 N E O WIZ G ames C orporation J umbuc k E nterta inment L imited MO K O .mobi L imited UO MO Media, Inc C LIC K E R Inc. G a mania Digital E ntertainment C o., Ltd. G ungH o O nline E ntertainment, Inc. P N I Digital Media Inc. C hines e G amer Interna tional U nis erve C ommunications C orp. N orthgate T echnologies L imited DXN Holdings B hd C ha ngy ou.com L imited G a meO n C o Ltd. T ree.C om, Inc. C DC C orp. B ey ond C ommerc e, Inc. S K C ommunica tions C o., Ltd. DigitalP os t Intera ctive, Inc. F luid Mus ic C a nada , Inc. Dolphin Digital Media, 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 NeuLion Inc orporated C ornerWorld C orporation Lingo Media C orporation NeX plore C orporation T heS treet.com, Inc . United O nline Inc . S NAP Intera ctive, Inc. O pen T ex t C orp. C y berplex Inc . IAC /InterAc tiveC orp. S pa rk N etwork s , Inc . G igaMedia Ltd. V alueC lic k Inc . is eemedia Inc . NetDra gon WebS oft, Inc . XIN G AG E olith C o. Ltd. S ohu.com Inc . F rogs ter Intera ctiv e P ic tures AG Mix i, Inc . G ree, Inc . As s ociated Media Holdings Inc . T encent Holdings Ltd. O penwave S y s tems Inc . P erfect World C o., Ltd. H anbitS oft, Inc . Y nk K orea Inc . Y edangO nline C orp. S ocial Media V enures , Inc . B igs tring C orp. My riad G roup AG T otal S port O nline AS S hutterfly , Inc . Acceleriz e New Media , Inc . K ings oft C o. Ltd. 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 (18), trading at an average multiple of 10.1x (vs. 11.5x last week). On a geographic basis, the United States has the most companies (38), trading at an average of 7.4x revenue (vs. 5.6x last week) (Figure 11). Ten of the companies are Canadian (average 4.3x revenue). Average TEV/LTM Revenue - By Exchange Average TEV/LTM Revenue - By Country 14.0 14.0 12.1 12.1 12.0 12.0 11.6 10.0 11.6 10.0 8.0 10.1 9.8 8.0 7.9 (x) 7.4 (x) 6.0 5.6 7.0 5.4 4.9 4.6 6.0 4.0 3.4 4.9 4.9 2.7 2.4 2.3 4.6 4.3 2.2 2.1 1.9 1.8 0.9 4.0 2.0 0.7 2.4 0.4 2.0 2.2 1.9 1.8 0.9 0.0 0.4 0.00.0 0.8 0.7 OTCNO OTCPK OTCBB GTSM NasdaqGM HLSE SEHK TSE OSE KOSE NasdaqGS RTS OM CM 0.4 0.0 0.0 TSX XTRA AMEX KLSE BSE AIM TSXV SWX 0.0 ASX Germany Finland China United Japan Canada Hong Kong Malaysia India Russia United Italy South Taiwan Australia Norway Switzerland Sweden # Companies 1 3 18 11 2 5 4 2 1 4 2 1 1 6 14 2 1 1 1 1 5 1 1 # Companies 1 10 38 3 6 2 1 10 1 8 2 1 1 1 1 1 1 1 Figures 10 & 11. TEV/Revenue Ranking (Exchange, Country) Source. Capital IQ
    • Page 11 TEV/EBITDA (LTM) averages 13.6x: The average multiple for the 36 companies with positive EBITDA (and multiples under 100x) is 13.6x LTM EBITDA (vs. 13.1x last week), led by Tencent Holdings (SEHK-700) 43.4x multiple (Figure 12). Eleven companies have EBITDA multiples under 7x. The median multiple is 10.7x (vs. 10.6x last week). T E V/L T M E B IT DA (x) 60. 0 48. 4 50. 0 43. 0 40. 0 32. 2 30. 0 26. 1 23. 8 24. 9 25. 0 18. 7 18. 8 19. 7 20. 0 A verage, 13.6 13. 1 14. 2 14. 3 11. 6 11. 7 11. 8 12. 4 8. 7 9. 6 9. 8 9. 9 9. 9 10. 2 10. 4 10. 9 10. 0 5. 8 6. 7 4. 0 4. 0 4. 3 4. 7 4. 9 1. 2 1. 5 1. 7 0. 0 NE O WIZ G ames C orporation J umbuck E ntertainment L imited G amania Digital E ntertainment C o. , Ltd. G ungH o O nline E ntertainment, Inc . P NI Digital Media Inc . C hines e G amer International DXN Holdings B hd C hangy ou. c om L imited G ameO n C o L td. C DC C orp. S K C ommunic ations C o. , L td. Modern T imes G roup Mtg AB S NAP Interac tive, Inc . U nited O nline Inc . T heS treet. c om, Inc . O pen T ex t C orp. S park Network s , Inc . C yberplex Inc . V alueC lic k Inc . NetDragon WebS oft, Inc . S ohu. c om Inc . IAC /InterAc tiveC orp. Mix i, Inc . G ree, Inc . T enc ent Holdings L td. XING AG P erfec t World C o. , L td. Y edangO nline C orp. Y nk K orea Inc. O penwave S y s tems Inc . H anbitS oft, 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 (18), trading at an average multiple of 4.0x. On a geographic basis, the United States has the most companies (38), trading at an average of 11.1x EBITDA (Figure 14). Ten of the companies are Canadian (average 13.9x EBITDA). Average TEV/LTM EBITDA - By Exchange Average TEV/LTM EBITDA - By Country 30.0 25.7 25.0 25.0 20.5 20.0 20.0 24.9 19.3 20.5 19.3 15.0 16.8 (x) 15.0 14.2 13.9 15.5 (x) 11.8 11.8 11.7 10.4 11.8 11.7 11.6 10.0 9.6 10.0 11.1 6.7 5.0 5.8 4.9 4.0 4.0 6.7 1.5 0.3 5.0 4.9 0.0 0.3 1.5 OTCBB GTSM NasdaqGM SEHK KOSE TSE NasdaqGS OSE RTS OM CM XTRA TSX KLSE AMEX TSXV ASX 0.0 0.0 Germany China Japan Canada Hong Kong United Malaysia Russia Italy South Korea States Taiwan Australia Sweden Switzerland # Companies 3 4 2 6 5 2 14 1 1 5 1 4 1 2 18 2 1 # Companies 3 8 10 6 10 2 1 1 38 1 1 2 1 1 Figures 13 & 14. TEV/EBITDA Ranking (Exchange, Country) Source. Capital IQ
    • Page 12 P/E (LTM) averages 19.2x: The average multiple for the 33 companies with positive earnings (and multiples under 100x) is 19.2x LTM EPS (vs. 18.4x last week), led by GungHo Online Entertainment’s (OSE:3765) 67.3x multiple (Figure 15). Eleven companies have P/E multiples under 10x. The median is 13.2x. P /E L T M (x) 80.0 70.0 67.3 61.2 60.0 52.3 50.1 50.0 42.2 38.6 40.0 36.9 30.0 26.0 22.8 A verage, 19.2 20.0 20.5 20.9 20.0 15.6 16.1 12.9 13.2 14.2 14.5 9.6 10.9 12.0 12.0 12.4 10.0 6.6 6.8 4.9 2.4 2.6 3.1 3.2 0.0 NE O W IZ G ames C orporation J umbuck E ntertainment Limited G amania Digital E ntertainment C o., Ltd. G ungH o O nline E ntertainment, Inc. C hines e G amer International DXN H oldings B hd C hangy ou.com Limited G ameO n C o Ltd. Modern T imes G roup Mtg AB T he9 Limited S handa Interactive E ntertainment Ltd. Neteas e.com Inc. S NAP Interactive, Inc. O pen T ex t C orp. C y berplex Inc. G igaMedia Ltd. S park Network s , Inc. IAC /InterActiveC orp. S ohu.com Inc. NetDragon W ebS oft, Inc. Worlds .com Inc. Mix i, Inc. G ree, Inc. T encent H oldings Ltd. XING AG P erfect World C o., Ltd. Y edangO nline C orp. H anbitS oft, Inc. K ings oft C o. Ltd. 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 (18), trading at an average multiple of 14.8x. On a geographic basis, the United States has the most companies (38), trading at an average of 13.7x earnings (Figure 17). Ten of the companies are Canadian (average 21.9x EPS). Average P/E - By Country Average P/E - By Exchange 50.0 45.1 80.0 45.0 67.3 40.0 70.0 35.0 60.0 30.0 50.0 26.0 25.0 (x) 37.8 25.0 21.9 33.4 31.5 (x) 40.0 20.0 26.0 14.4 14.2 30.0 21.1 15.0 14.1 13.7 14.8 20.0 14.2 12.4 11.5 10.0 6.6 4.9 6.8 6.6 10.0 4.9 5.0 0.0 2.1 0.0 0.0 0.0 0.0 Germany Japan Canada China United Malaysia Hong Kong OTCBB South Korea GTSM NasdaqGM States OSE TSE SEHK KOSE NasdaqGS Taiwan Australia OM XTRA AMEX TSX KLSE NYSE Sweden Switzerland ASX # Companies 1 5 3 2 2 6 18 1 2 14 4 1 2 1 5 # Companies 6 2 3 10 10 1 8 38 1 2 1 1 Figures 16 & 17. P/E Ranking (Exchange, Country) Source. Capital IQ
    • Page 13 UPCOMING EVENTS E arnings C alendar C ompany Date & Time Quarter C onf C all Details Myria d G roup AG (S W X : MY R N) W ednes da y, S eptember 23, 2009 9: 00 AM (C E T ) Q2 2009 NA T ree. C om, Inc. (Nas da qG M: T R E E ) F rida y, O ctober 30, 2009 11: 00 AM (E DT ) Q3 2009 888-428-9470 Figure 18. Earnings Calendar Source. Company reports
    • Page 14 C omparable C ompany Analys is > Web 2.0 P ric e P erformanc e C ompany Name C urrency Ticker E xc hange US D Market C ap ($m) C urrent P ric e 1 Wk 1 Mth 3 Mth 6 Mth 1 Yr 52 Week A ccelerize New Media, Inc. US D AC LZ OTC B B 18.2 0.65 8. 3% 14.0% 62.5% 225. 0% 18.2% 0. 0% A ctoz S oft C o. , L td. KR W A052790 K OS E 142.6 19,950 10.8% 0.3% -23.6% 80.5% 123.4% -44.6% A Q Interactive, Inc. JPY 3838 TSE 31.0 52,500 -1.1% 5.6% -29.6% 60.6% -23.2% -36.7% A s s ocia ted Media H oldings Inc. US D AS MH OTC P K 0. 6 0.01 -30.0% -30.0% 833.3% 180. 0% -30.0% -72.0% B igs tring C orp. US D BS GC OTC B B 1. 1 0.02 -2.6% 6.7% -32.1% 26.7% -52.5% -70.8% B eta wave C orporation US D B W AV OTC B B 2. 0 0.07 0. 0% -12.5% -22.2% -63. 2% -76.7% -79.4% B eyond C ommerce, Inc. US D B Y OC OTC B B 7. 9 0.17 -15.0% -12.8% -76.7% -67. 3% -93.2% -93.5% B right T hings plc GBP AIM:B G T A IM 6. 0 0.01 -0.4% -1.8% 5. 8% -8.3% 9. 9% -44.3% B roadW ebA s ia Inc. US D BWBA OTC P K 19.5 0.23 -22.8% -22.8% -54.9% -77. 2% -84.7% -92.1% C DC C orp. US D C H IN.A Nas da qG S 294.6 2.78 0. 4% 9.0% 105.9% 157. 4% 29.9% -29.1% C ha ngyou.com L imited US D CY OU Nas da qG S 2,106.0 38.29 -5.6% -0.9% 4. 7% NM NM -20.8% C hina G a tewa y C orporation US D CGW Y OTC P K 0. 3 0.02 -25.0% 650.0% 650.0% 650. 0% -50.0% -57.1% C hines e G a mer International TWD G T S M:3083 GTS M 1,187.8 458.00 10.6% 24.5% 26.2% 142. 3% 627.0% -11.8% C LIC K E R Inc. US D CLK Z OTC B B 0. 4 0.01 -9.1% 0.0% 78.6% -50. 0% -98.0% -98.8% C ornerW orld C orpora tion US D CW R L OTC B B 5. 7 0.06 0. 0% 9.1% 0. 0% -57. 1% -70.0% -87.2% C yberplex Inc. C AD T S X: C X TSX 76.6 1.27 0. 0% -19.6% -23.0% 67.1% 119.0% -36.2% DADA S pA E UR C M: DA CM 165.4 6.95 -2.3% 11.6% 18.2% 42.0% -22.8% -33.7% DXN Holdings B hd MY R DXN K LS E 39.8 0.61 4. 3% 21.0% 59.2% 116. 1% 59.2% -0.8% Dibz International, Inc. US D DIB Z OTC P K 0. 0 0.00 20.0% NM 20.0% -88. 0% -97.6% -97.6% DigitalP os t Intera ctive, Inc. US D DG LP OTC B B 4. 6 0.06 9. 1% 0.0% 114.3% 200. 0% -7. 7% -39.4% DigitalT own, Inc. US D DG T W OTC B B 72.2 2.64 76.0% 95.6% 32.0% 5.6% -12.0% -34.0% Dolphin Digital Media, Inc. US D DP DM OTC B B 21.5 0.40 6. 4% 9.6% -27.3% -33. 3% -64.3% -64.6% E olith C o. Ltd. KR W A041060 K OS E 52.6 875.00 2. 3% 5.4% 4. 2% 65.1% 43.4% -24.6% E xtens ions , Inc. US D E XT I OTC P K 11.1 0.25 38.9% 212.5% 66.7% 66.7% 150.0% -75.2% F luid Mus ic C anada , Inc. C AD T S X: F MN TSX 68.0 1.40 -5.4% -3.4% 122.2% 300. 0% 4. 5% -6.0% F rogs ter Intera ctive P ictures A G E UR FR G XT R A 63.5 17.13 -8.8% 4.8% 115.5% 137. 9% 231.3% -13.8% G amania Digita l E nterta inment C o. , Ltd. TWD 6180 GTS M 242.1 51.70 12.5% 5.3% -9.9% 53.0% 203.2% -24.9% G ameO n C o Ltd. JPY 3812 TSE 105.8 100,800 0. 0% -4.6% -6.6% 26.0% -25.3% -33.7% G eoS entric Oyj E UR G E O1V H LS E 65.9 0.05 0. 0% -16.7% 25.0% 25.0% 0. 0% -16.7% G ia nt Interactive G roup, Inc. US D GA NY S E 1,750.4 7.73 2. 7% 0.7% -4.1% 11.9% 14.7% -19.2% G igaMedia Ltd. US D G IG M Nas da qG S 303.7 5.57 15.3% 18.5% 1. 1% -8.4% -28.7% -37.8% G ra vity C o., L td US D GR VY Nas da qG M 54.2 1.95 14.0% -21.7% 77.3% 204. 7% 89.3% -25.9% G ree, Inc. JPY T S E :3632 TSE 2,394.2 9,850 16.6% 21.3% 47.9% 113. 7% NM 0. 0% G ungH o Online E nterta inment, Inc. JPY 3765 OS E 302.3 243,000 -6.1% -0.2% 3. 8% 112. 2% 20.2% -13.2% H anbitS oft, Inc. KR W A047080 K OS E 73.6 4,050 -3.6% 1.0% -6.9% 21.6% 24.0% -39.0% IAC /InterA ctiveC orp. US D IA C I Nas da qG S 2,731.5 20.63 6. 3% 5.8% 30.2% 38.6% 21.4% -1.1% IAS E nergy, Inc. US D IA S A .E OTC B B 10.6 0.15 0. 0% 0.0% -25.0% 233. 3% -9. 1% -46.4% is eemedia Inc. C AD IE E T S XV 4. 3 0.09 50.0% 38.5% -10.0% 0.0% -10.0% -43.8% J umbuck E nterta inment L imited AU D AS X:J MB AS X 16.8 0.40 8. 1% 11.1% 2. 6% -20. 0% -32.2% -34.4% K AB Dis tribution Inc. C AD T S X: K A B TSX 0. 6 0.01 -99.2% -99.2% -99.2% -98. 6% -99.4% -99.2% K ings oft C o. Ltd. HK D 3888 S E HK 1,141.2 8.11 -1.9% 0.4% 57.5% 170. 3% 265.3% -14.4% L ingo Media C orpora tion C AD T S XV :L M T S XV 11.5 1.00 0. 0% 6.4% 0. 0% 17.6% -43.5% -43.5% L iveW orld Inc. US D LV W D OTC P K 1. 5 0.05 25.0% 0.0% -50.0% -66. 7% -79.2% -80.0% L ookS mart, L td. US D LO O K Nas da qG M 21.9 1.28 9. 4% -2.3% 2. 4% 28.0% -52.8% -54.1% Ma gnitude Informa tion S ys tems Inc. US D MAG Y OTC B B 4. 5 0.01 8. 7% 53.8% -16.7% -41. 2% -52.4% -66.7% Mixi, Inc. JPY 2121 TSE 1,002.2 599, 000.00 6. 4% -0.5% 21.0% 84.3% -21.3% -25.5% Modern T imes G roup Mtg AB SEK MT G B OM 2,974.2 312.50 7. 9% 3.6% 55.1% 117. 0% 18.6% -4.4% MO K O .mobi Limited AU D MK B AS X 5. 2 0.07 0. 0% 0.0% -6.7% -6.7% 27.3% -30.0% Myriad G roup AG C HF MY R N S WX 92.0 4.46 -0.9% 2.8% -7.1% 11.5% -51.5% -53.1% NE O W IZ G ames C orpora tion KR W A095660 K OS E 732.8 42, 000.00 7. 4% 36.6% 23.7% 101. 4% 306.8% -5.6% NetDra gon W ebS oft, Inc. HK D 777 S E HK 394.2 5.78 -1.4% -6.0% 15.4% 37.9% 18.0% -19.2% Neteas e. com Inc. US D NT E S Nas da qG S 5,667.6 43.79 2. 9% 3.0% 28.8% 75.9% 95.9% -6.7% NeuLion Incorpora ted C AD T S X: NL N TSX 98.3 0.93 -9.7% -12.3% 31.0% 111. 4% NM -28.5% NeXplore C orpora tion US D NXP C OTC P K 30.7 0.55 -8.3% -8.3% -21.4% -26. 7% -52.2% -62.1% Ngi G roup Inc. JPY 2497 TSE 36.0 26, 750.00 -12.0% -14.4% -22.7% 52.1% -77.1% -79.0% Northgate T echnologies L imited INR 590057 BSE 31.0 42.65 -1.2% 20.5% 11.2% 32.0% -83.5% -84.1% O pen T ext C orp. US D OT E X Nas da qG S 2,215.1 39.45 10.6% 2.9% 13.2% 13.0% 11.2% -1.8% O penwa ve S ys tems Inc. US D OP W V Nas da qG S 225.4 2.70 -5.9% -7.2% 39.2% 225. 3% 132.8% -13.7% P erfect W orld C o., L td. US D PWRD Nas da qG S 2,163.0 43.98 1. 3% 12.6% 47.4% 227. 5% 88.7% -2.6% P NI Digital Media Inc. C AD T S XV :P N T S XV 59.9 1.89 0. 5% 17.4% 17.4% 27.7% -9. 1% -22.9% Q uepa s a C orp. US D QP S A OTC B B 22.1 1.74 -0.6% 16.0% 155.9% 70.6% -45.6% -46.5% O AO R B C Informa tion S ys tems US D R BCI R TS 160.9 1.16 10.5% 10.5% 16.0% 262. 5% -78.7% -85.2% S ha nda Intera ctive E nterta inment L td. US D S NDA Nas da qG S 3,574.1 53.53 4. 1% 10.2% 5. 3% 35.9% 98.8% -17.6% S hutterfly, Inc. US D S F LY Nas da qG S 450.8 17.71 19.2% 16.8% 35.1% 99.0% 95.9% -2.3% S K C ommunications C o., Ltd. KR W A066270 K OS E 323.4 9, 310.00 3. 3% -0.9% -13.8% 14.7% -21.8% -27.5% S NA P Intera ctive, Inc. US D S TVI OTC B B 5. 4 0.50 25.0% 25.0% -23.1% -2.0% -43.8% -53.7% S NM G loba l H oldings US D S NMN OTC P K 0. 0 0.00 81.0% 90.0% -45.7% 280. 0% -99.1% -99.4% S ocial Media V enures , Inc. US D S MV I OTC P K 0. 0 0.08 0. 0% -27.3% 700.0% -93. 3% -85.5% -98.4% S ocialwis e, Inc. US D S C LW OTC B B 25.7 0.58 18.4% -3.3% -15.9% 45.0% -73.4% -77.3% S ohu.com Inc. US D S O HU Nas da qG S 2,639.7 68.86 4. 6% 7.4% 11.0% 65.2% 16.6% -4.7% S pa rk Networks , Inc. US D LO V A ME X 45.3 2.20 0. 9% 4.8% -5.2% -6.0% -44.4% -47.4% S pectrumDNA, Inc. US D S P XA OTC B B 10.7 0.22 0. 0% -4.3% -4.3% 15.8% -45.0% -51.1% T encent H oldings Ltd. HK D 700 S E HK 29,985.0 128 0. 9% 11.1% 50.2% 131. 9% 126.1% -2.1% T he P a rent C ompa ny US D K IDS .Q OTC P K 0. 2 0.01 -9.1% -33.3% -60.0% -33. 3% -99.1% -99.4% T he9 L imited US D NC T Y Nas da qG S 212.3 8.46 3. 5% -1.1% -18.5% -34. 0% -54.3% -56.4% T heS treet.com, Inc. US D TS CM Nas da qG M 83.2 2.72 2. 6% 17.7% 32.0% 30.1% -54.7% -60.5% T ota l S port O nline AS NOK TOS O O T C NO 0. 1 0.03 0. 0% 0.0% 0. 0% -25. 0% -40.0% 0. 0% T ree.C om, Inc. US D TR E E Nas da qG M 84.2 7.79 -0.5% -16.2% -18.0% 55.8% 40.6% -40.4% U nis erve C ommunica tions C orp. C AD T S XV :U S S T S XV 0. 9 0.04 -11.1% -11.1% -42.9% -20. 0% -76.5% -82.6% U nited O nline Inc. US D UNT D Nas da qG S 692.5 8.26 5. 9% 12.5% 44.2% 85.2% -15.1% -22.1% U OMO Media , Inc US D UO MO OTC B B 10.5 0.12 -11.7% -22.9% -21.9% -6.9% -58.3% -88.6% V alueC lick Inc. US D V C LK Nas da qG S 1,109.5 12.73 13.8% 16.5% 21.7% 58.5% 25.5% -0.1% V OIS , Inc. US D V O IS OTC B B 2. 5 0.00 -25.0% -50.0% -66.7% 150. 0% -70.3% -87.0% W ebzen Inc. US D W ZE N Nas da qG M 36.2 3.05 3. 7% 7.0% -7.6% 60.5% 99.3% -34.8% W izzard S oftwa re C orporation US D W ZE A ME X 23.2 0.46 -16.4% 0.0% -28.1% 2.8% -68.9% -73.4% W orlds .com Inc. US D W DDD OTC B B 5. 2 0.10 0. 0% 11.1% 0. 0% -44. 4% -70.6% -71.4% W ynds torm C orporation US D W Y ND OTC P K 1. 8 0.10 0. 0% 0.0% 185.7% -16. 7% -54.5% -83.3% XING A G E UR O1B C XT R A 253.5 32.75 -0.3% 19.1% 10.5% 15.3% 10.6% -4.8% Y edangO nline C orp. KR W A052770 K OS E 112.1 9, 020.00 -2.0% 5.9% 9. 2% 3.9% 24.8% -27.3% Y nk K orea Inc. KR W A023770 K OS E 18.7 4, 215.00 3. 8% 3.7% -32.0% 9.6% -64.4% -66.0% H igh 81.0% 650.0% 833.3% 650. 0% 627.0% 0. 0% L ow -99.2% -99.2% -99.2% -98. 6% -99.4% -99.4% Average 769.5 2.7% 13.0% 35.2% 58.4% 6.0% -43.4% Media n 0. 2% 3.0% 4. 4% 32.0% -21.8% -38.4% Figure 19. Price Performance Source. Capital IQ
    • Page 15 C omparable C ompany Analys is > Web 2.0 Valuation Multiples P rimary US D Market TE V/L TM TE V/ NTM TE V/L TM TE V/NTM C ompany Name S ec tor C ountry E xc hange Tic ker C ap ($m) R evenue R evenue E B ITDA E B ITDA P /L TM E P S P /NTM E P S P /TangB V Accelerize New Media, Inc. Direct Ma rketing U nited S ta tes OT C B B AC LZ 18. 2 5. 2x - - - - - - Actoz S oft C o., Ltd. G aming S outh K orea K OS E A052790 142. 6 1. 0x - 4.3x - 20.5x - 2. 3x AQ Interactive, Inc. G aming J apa n TS E 3838 31. 0 0. 2x - - - - - 0. 5x As s ociated Media Holdings Inc. Mobile U nited S ta tes OT C P K AS MH 0. 6 15.6x - - - - - - B igs tring C orp. Ins ta nt Mes s aging U nited S ta tes OT C B B BSGC 1. 1 34.6x - - - - - - B etawave C orporation Media U nited S ta tes OT C B B B W AV 2. 0 - - - - - - 0. 4x B eyond C ommerce, Inc. S ocial Networking U nited S ta tes OT C B B B YOC 7. 9 1. 2x - - - - - - B right T hings plc S ocial Networking U nited K ingdom AIM AIM:B G T 6. 0 - - - - - - - B roadW ebAs ia Inc. S ocial Networking U nited S ta tes OT C P K BWBA 19. 5 - - - - - - - C DC C orp. G aming H ong K ong Nas daqG S C HIN .A 294. 6 0. 8x 0. 9x 11. 6x 8.1x - - - C hangyou. com L imited G aming C hina Nas daqG S C Y OU 2,106. 0 7. 6x 5. 9x 12. 4x 10.2x 14.5x 12.9x 14.3x C hina G ateway C orporation Mobile U nited S ta tes OT C P K CGW Y 0. 3 0. 0x - - - - - - C hines e G amer International G aming T aiwan GTS M G T S M:3083 1,187. 8 18.1x - 32. 2x - 42.2x - 20.4x C LIC K E R Inc. Direct Ma rketing U nited S ta tes OT C B B CLK Z 0. 4 0. 2x - - - - - - C ornerW orld C orpora tion C ontent U nited S ta tes OT C B B CW R L 5. 7 4. 1x - - - - - - C yberplex Inc. Advertis ing C ana da TS X T S X:C X 76. 6 0. 6x 0. 5x 5.8x - 6. 8x 7. 7x 3. 0x DADA S pA S ocial Networking Italy CM C M:DA 165. 4 0. 9x - 6.7x - - - - DXN Holdings B hd S ocial Networking Ma lays ia K LS E DXN 39. 8 0. 7x - 4.9x - 6. 6x - 0. 8x Dibz International, Inc. S N S Apps U nited S ta tes OT C P K DIB Z 0. 0 - - - - - - - DigitalP os t Intera ctive, Inc. C ontent U nited S ta tes OT C B B DG L P 4. 6 6. 7x - - - - - - DigitalT own, Inc. S ocial Networking U nited S ta tes OT C B B DG T W 72. 2 - - - - - - - Dolphin Digital Media , Inc. S ocial Networking U nited S ta tes OT C B B DP DM 21. 5 38.6x 1. 4x - - - 1. 6x - E olith C o. Ltd. G aming S outh K orea K OS E A041060 52. 6 3. 6x - - - - - 4. 8x E xtens ions , Inc. C ontent U nited S ta tes OT C P K E XT I 11. 1 - - - - - - - F luid Mus ic C ana da, Inc. Media U nited S ta tes TS X T S X:F MN 68. 0 11.4x 10.2x - - - - 6. 3x F rogs ter Intera ctive P ictures AG G aming G ermany XT R A FR G 63. 5 6. 4x - - - - - 7. 9x G amania Digita l E nterta inment C o., L td. G aming T aiwan GTS M 6180 242. 1 1. 6x - 8.7x - 20.9x - 3. 1x G ameO n C o L td. G aming J apa n TS E 3812 105. 8 0. 4x - 1.7x - 10.9x - 1. 3x G eoS entric Oyj Mobile F inla nd HLS E G E O1V 65. 9 12.1x - - - - - 54.3x G iant Intera ctive G roup, Inc. G aming C hina NY S E GA 1,750. 4 - - - - 2. 1x 14.0x 0. 3x G igaMedia L td. G aming T aiwan Nas daqG S G IG M 303. 7 1. 3x 1. 2x - 5.9x 12.0x 11.2x 2. 6x G ravity C o., Ltd G aming S outh K orea Nas daqG M GR VY 54. 2 - - - - 0. 0x - 0. 0x G ree, Inc. S ocial Networking J apa n TS E T S E :3632 2,394. 2 15.0x - 25. 0x - 52.3x - 24.2x G ungHo O nline E ntertainment, Inc. Media J apa n OS E 3765 302. 3 2. 3x - 10. 4x - 67.3x - 23.2x H anbitS oft, Inc. G aming S outh K orea K OS E A047080 73. 6 1. 0x - 43. 0x - 13.2x - 2. 1x IAC /InterActiveC orp. Media U nited S ta tes Nas daqG S IAC I 2,731. 5 0. 7x 0. 7x 18. 8x 5.8x 12.9x 39.2x 1. 3x IAS E nergy, Inc. V ideo C ana da OT C B B IA S A.E 10. 6 - - - - - - - is eemedia Inc. C ontent C ana da T S XV IE E 4. 3 2. 1x - - - - - 3. 5x J umbuck E nterta inment L imited S ocial Networking A us tralia AS X AS X:J MB 16. 8 0. 6x - 1.5x - 4. 9x - 1. 6x K A B Dis tribution Inc. C ontent C ana da TS X T S X:K A B 0. 6 - - - - - - 0. 0x K ings oft C o. L td. G aming C hina S E HK 3888 1,141. 2 8. 3x - 18. 7x - 22.8x - 6. 3x L ingo Media C orporation Learning C ana da T S XV T S XV :L M 11. 5 8. 8x - - - - - 20.5x L iveW orld Inc. S ocial Networking U nited S ta tes OT C P K LV W D 1. 5 0. 0x - - - - - 0. 7x L ookS mart, Ltd. Direct Ma rketing U nited S ta tes Nas daqG M LO OK 21. 9 - - - - - - 0. 8x Magnitude Information S ys tems Inc. S ocial Networking U nited S ta tes OT C B B MAG Y 4. 5 - - - - - - - Mixi, Inc. S ocial Networking J apa n TS E 2121 1,002. 2 6. 7x - 19. 7x - 50.1x - 6. 8x Modern T imes G roup Mtg AB Media S weden OM MT G B 2,974. 2 1. 8x - 11. 7x - 14.2x - - MOK O.mobi L imited S ocial Networking A us tralia AS X MK B 5. 2 3. 2x - - - - - 3. 6x Myria d G roup AG Mobile S witzerland SWX MY R N 92. 0 2. 4x - - - - - 4. 0x N E OW IZ G ames C orporation G aming S outh K orea K OS E A095660 732. 8 3. 5x - 13. 1x - 38.6x - 19.5x N etDragon W ebS oft, Inc. G aming C hina S E HK 777 394. 2 2. 9x - 9.9x - 16.1x - 2. 1x N etea s e.com Inc. G aming C hina Nas daqG S NT E S 5,667. 6 - - - - 3. 2x 17.5x 0. 9x N euL ion Incorporated V ideo C ana da TS X T S X:NLN 98. 3 4. 1x - - - - - 7. 2x N eXplore C orporation C ontent U nited S ta tes OT C P K NXP C 30. 7 49.2x - - - - - - N gi G roup Inc. Media J apa n TS E 2497 36. 0 - - - - - - 0. 7x N orthgate T echnologies Limited Direct Ma rketing India BSE 590057 31. 0 0. 4x - - - - - - O pen T ext C orp. C ollabora tion C ana da Nas daqG S OT E X 2,215. 1 2. 9x 2. 4x 10. 9x 9.1x 36.9x 14.0x - O penwa ve S ys tems Inc. Mobile U nited S ta tes Nas daqG S OP W V 225. 4 0. 6x 0. 6x 23. 8x 5.3x - 42.2x 3. 3x P erfect W orld C o. , Ltd. G aming C hina Nas daqG S PWRD 2,163. 0 0. 7x 3. 4x 1.2x 6.6x 3. 1x - 1. 4x P N I Digita l Media Inc. Digital Ima ging C ana da T S XV T S XV :P N 59. 9 2. 7x 2. 3x 24. 9x 7.5x - 15.1x 20.8x Q uepas a C orp. S ocial Networking U nited S ta tes OT C B B QP S A 22. 1 - - - - - - - O AO R B C Information S ys tems Media R us s ia R TS R BCI 160. 9 0. 0x - 0.3x - - - - S handa Interactive E ntertainment Ltd. G aming C hina Nas daqG S S N DA 3,574. 1 - - - - 2. 6x 13.7x 1. 0x S hutterfly, Inc. Digital Ima ging U nited S ta tes Nas daqG S S F LY 450. 8 1. 8x 1. 7x 14. 2x 8.9x - - 2. 7x S K C ommunications C o., Ltd. S earch S outh K orea K OS E A066270 323. 4 1. 7x - 26. 1x - - - - S N AP Interactive, Inc. Da ting U nited S ta tes OT C B B STVI 5. 4 1. 1x - 4.0x - 9. 6x - 3. 0x S N M G lobal H oldings Media U nited S ta tes OT C P K S NMN 0. 0 1. 1x - - - - - - S ocial Media V enures , Inc. S ocial Networking U nited S ta tes OT C P K S MV I 0. 0 4. 5x - - - - - - S ocialwis e, Inc. S ocial Networking U nited S ta tes OT C B B S CLW 25. 7 - - - - - - - S ohu. com Inc. G aming C hina Nas daqG S S O HU 2,639. 7 4. 4x 3. 8x 10. 2x 8.5x 15.6x 18.7x 5. 2x S park N etworks , Inc. S ocial Networking U nited S ta tes AME X LO V 45. 3 0. 9x - 4.0x - 12.4x - 46.3x S pectrumDNA, Inc. Media U nited S ta tes OT C B B S P XA 10. 7 - - - - - - - T encent H oldings L td. P ortal C hina S E HK 700 29,985. 0 23.7x - 48. 4x - 61.2x - 27.3x T he P a rent C ompany Media U nited S ta tes OT C P K K IDS . Q 0. 2 0. 2x 0. 2x - 12.8x - - - T he9 L imited G aming C hina Nas daqG S NC T Y 212. 3 - - - - 2. 4x - 0. 1x T heS treet. com, Inc. Media U nited S ta tes Nas daqG M TS CM 83. 2 0. 3x 0. 3x 9.6x - - - 1. 1x T otal S port Online AS Media N orway OT C N O T OS O 0. 1 4. 6x - - - - - - T ree.C om, Inc. P ortal U nited S ta tes Nas daqG M TR E E 84. 2 0. 4x 0. 4x - 8.1x - 50.1x 1. 1x U nis erve C ommunica tions C orp. S ocial Networking C ana da T S XV T S XV :US S 0. 9 0. 2x - - - - - - U nited Online Inc. Media U nited S ta tes Nas daqG S UN T D 692. 5 1. 0x 1. 0x 4.7x 4.0x - 6. 3x - U OMO Media, Inc Media C ana da OT C B B UO MO 10. 5 12.6x - - - - - - V a lueC lick Inc. Media U nited S ta tes Nas daqG S V C LK 1,109. 5 1. 7x 1. 8x 9.8x 7.0x - 19.9x 7. 2x V O IS , Inc. S ocial Networking U nited S ta tes OT C B B V OIS 2. 5 - - - - - - 15.8x W ebzen Inc. G aming S outh K orea Nas daqG M W ZE N 36. 2 - - - - 0. 0x - 0. 0x W izzard S oftwa re C orpora tion P odca s ting U nited S ta tes AME X W ZE 23. 2 4. 6x - - - - - - W orlds .com Inc. C ontent U nited S ta tes OT C B B W DDD 5. 2 - - - - 20.0x - - W ynds torm C orpora tion C ontent U nited S ta tes OT C P K W Y ND 1. 8 - - - - - - - XING A G S ocial Networking G ermany XT R A O1B C 253. 5 3. 4x - 11. 8x - 26.0x - 8. 1x Y eda ngO nline C orp. G aming S outh K orea K OS E A052770 112. 1 2. 1x - 9.9x - 12.0x - 3. 8x Y nk K orea Inc. G aming S outh K orea K OS E A023770 18. 7 1. 5x - 14. 3x - - - 0. 9x H igh 29,985. 0 49.2x 10.2x 48. 4x 12.8x 67.3x 50.1x 54.3x L ow 0. 0 0. 0x 0. 2x 0.3x 4.0x 0. 0x 1. 6x 0. 0x Average 769.5 5.4x 2.2x 13.6x 7.7x 19.2x 18.9x 7.6x Median 48. 9 2. 1x 1. 3x 10. 7x 7.8x 13.2x 14.0x 3. 0x Figure 20. Valuation Comparison Source. Capital IQ
    • Page 16 C omparable C ompany Analys is > Web 2.0 S ummary by C ountry C ompany Name US D Market C ap ($m) Avg US D Market C ap ($m) US D L TM Total R ev ($m) US D L TM Total E B ITDA ($m) E B ITDA % United S tates 38 C hina 49, 633. 4 C hina 4,963.3 C hina 4, 152. 4 C hina 2, 070. 2 C hina 48. 8% C anada 10 United S tates 5, 811. 3 S weden 2,974.2 United S ta tes 3, 887. 3 S weden 304. 6 Aus tra lia 42. 8% C hina 10 J apa n 3, 871. 5 J a pa n 645.3 S weden 1, 982. 6 United S tates 290. 0 T aiwan 37. 1% S outh K orea 8 S weden 2, 974. 2 T a iwan 577.9 C anada 1, 015. 0 C a na da 200. 0 J apa n 24. 2% J apan 6 C a na da 2, 488. 2 Hong K ong 294.6 S outh K orea 707. 3 J a pa n 186. 0 S weden 15. 4% T aiwan 3 T aiwan 1, 733. 6 C a nada 248.8 J apan 634. 4 S outh K orea 121. 9 Ma lays ia 14. 4% Aus tralia 2 S outh K orea 1, 527. 4 S outh K orea 190.9 T aiwan 385. 8 T a iwan 59. 8 Ita ly 13. 1% G ermany 2 G ermany 317.0 Ita ly 165.4 Hong K ong 361. 6 Ita ly 31. 9 R us s ia 13. 1% S witzerland 1 Hong K ong 294.6 R us s ia 160.9 Italy 242. 6 Hong K ong 25. 1 S outh K orea 12. 7% Hong K ong 1 Ita ly 165.4 G ermany 158.5 R us s ia 156. 2 R us s ia 20. 4 Hong K ong 6. 9% F inland 1 R us s ia 160.9 United S tates 152.9 India 82. 8 G ermany 12. 5 S witz erla nd 1. 9% Italy 1 S witz erla nd 92. 0 S witzerla nd 92.0 Malays ia 77. 1 Ma la ys ia 11. 1 C a na da -8. 5% United K ingdom 1 F inla nd 65. 9 F inla nd 65.9 G ermany 68. 7 Aus tralia 4. 5 G ermany -9. 1% India 1 Ma lays ia 39. 8 Ma la ys ia 39.8 S witzerland 40. 0 S witz erla nd 0. 8 United S tates -21. 9% S weden 1 India 31. 0 India 31.0 Aus tralia 17. 8 Norway -1. 1 India -50. 0% R us s ia 1 Aus tra lia 22. 1 Aus tralia 11.0 F inland 5. 5 United K ingdom -2. 7 Norway -50. 6% Malays ia 1 United K ingdom 6. 0 United K ingdom 6.0 Norway 2. 3 F inla nd -17. 5 United K ingdom #DIV /0! Norway 1 Norway 0. 1 Norway 0.1 United K ingdom 0. 0 India -41. 4 F inla nd #DIV /0! G rand Total 89 G rand Total 69,234.6 G rand Total 777.9 G rand Total 13,819.5 G rand Total 3,276.1 G rand Total 5.1% Figure 21. Comparison by Country Source. Capital IQ C omparable C ompany Analys is > Web 2.0 S ummary by E xc hange C ompany Name US D Market C ap ($m) Avg US D Market C ap ($m) US D L TM Total R ev ($m) US D L TM Total E B ITDA ($m) E B ITDA % OT C B B 18 S E HK 31,520.4 S E HK 10, 506. 8 OM 1,982.6 Na s da qG S 1,796.0 NY S E 62. 5% Na s daqG S 14 Na s daqG S 24,385.7 OM 2, 974. 2 S E HK 540.0 S E HK 767.5 AS X 42. 8% OT C P K 11 TS E 3, 569.2 NY S E 1, 750. 4 Na s daqG S 498.6 OM 304.6 S E HK 40. 6% K OS E 6 OM 2, 974.2 Nas da qG S 1, 741. 8 CM 242.6 TS E 160.2 GTS M 37. 1% TS E 5 NY S E 1, 750.4 GTS M 715. 0 NY S E 198.5 NY S E 124.1 Nas da qG S 30. 4% Na s daqG M 5 K OS E 1, 437.0 TS E 713. 8 RTS 156.2 K OS E 103.2 TS E 24. 6% TS X 4 GTS M 1, 430.0 OS E 302. 3 OS E 116.1 GTS M 59.8 OS E 22. 2% T S XV 4 XT R A 317.0 K OS E 239. 5 K OS E 106.0 CM 31.9 OM 15. 4% S E HK 3 OS E 302.3 CM 165. 4 TS E 103.7 OS E 25.8 K LS E 14. 4% AME X 2 Na s daqG M 279.7 R TS 160. 9 GTS M 101.1 R TS 20.4 CM 13. 1% AS X 2 TS X 243.6 XT R A 158. 5 BSE 82.8 Na s da qG M 15.6 R TS 13. 1% XT R A 2 OT C B B 230.9 SWX 92. 0 Na s daqG M 82.4 XT R A 12.5 K OS E 9. 6% GTS M 2 CM 165.4 HLS E 65. 9 K LS E 77.1 K LS E 11.1 Nas da qG M 7. 7% SWX 1 RTS 160.9 TS X 60. 9 TS X 46.4 AME X 6.2 T S XV 5. 6% HL S E 1 SWX 92.0 Nas da qG M 55. 9 SWX 40.0 AS X 4.5 SWX 1. 9% CM 1 T S XV 76.6 K LS E 39. 8 XT R A 34.3 SWX 0.8 XT R A -9. 1% BSE 1 AME X 68.5 AME X 34. 2 AME X 27.9 O T C NO -1.1 AME X -31. 8% NY S E 1 HL S E 65.9 BSE 31. 0 OT C P K 16.5 AIM -2.7 TS X -34. 7% OS E 1 OT C P K 65.8 T S XV 19. 1 T S XV 12.0 TS X -4.3 OT C B B -38. 8% AIM 1 K LS E 39.8 OT C B B 12. 8 AS X 8.9 T S XV -4.6 OT C P K -41. 5% OM 1 BSE 31.0 AS X 11. 0 HL S E 5.5 HL S E -17.5 BSE -50. 0% RTS 1 AS X 22.1 AIM 6. 0 OT C B B 2.3 OT C P K -34.1 O T C NO -50. 6% K LS E 1 AIM 6.0 OT C P K 6. 0 O T C NO 2.3 BSE -41.4 AIM #DIV /0! O T C NO 1 O T C NO 0.1 O T C NO 0. 1 AIM 0.0 OT C B B -62.4 HLS E #DIV /0! G rand Total 89 G rand Total 69,234.6 G rand Total 777.9 G rand Total 13,819.5 G rand Total 3,276.1 G rand Total 5.1% Figure 22. Comparison by Exchange Source. Capital IQ
    • Page 17 Financing - L as t Three Months (US $ m) F in. Amount (Million) Type of financ ing Month C ompany Name C ountry Angel/S eed S eries A S eries B S eries C S eries D G rand Total J ul-09 P andora Media US A 35. 0 35. 0 K ontera L td. Is rael 15. 5 15. 5 Ning US A 15. 0 15. 0 Quic kP lay Media C a na da 12. 0 12. 0 C aus es US A 10. 0 10. 0 Outs park US A 8. 3 8. 3 C onnectE du US A 8. 2 8. 2 Acquia, Inc US A 8. 0 8. 0 S B Nation US A 8. 0 8. 0 MediaMath US A 6. 6 6. 6 Metavers um G erma ny 6. 3 6. 3 iMemories US A 6. 2 6. 2 Invodo US A 6. 0 6. 0 J ambool US A 5. 0 5. 0 Quikr India P vt. L td. India 4. 1 4. 1 OP E N S ports network US A 4. 0 4. 0 S tyleC as ter US A 4. 0 4. 0 Nexage US A 4. 0 4. 0 TweetDec k UK 3. 2 3. 2 B us ca US A 2. 6 2. 6 Akademos US A 2. 5 2. 5 P rotonMedia US A 2. 5 2. 5 iL oop Mobile US A 2. 0 2. 0 C omunitae S pa in 1. 7 1. 7 Aloqa G erma ny 1. 5 1. 5 L at49 C a na da 1. 5 1. 5 Thread US A 1. 2 1. 2 Tributes .com US A 1. 2 1. 2 C oTweet US A 1. 1 1. 1 C ellufun US A 1. 0 1. 0 C likthrough US A 1. 0 1. 0 C ognitive Matc h L imited UK 1. 0 1. 0 B ookF res h US A 0. 5 0. 5 P eople C apital US A 0. 5 0. 5 Mas her Media US A 0. 3 0. 3 J ul-09 Total 65.0 11.1 36.8 51.5 27.0 191.4 Aug-09 Turbine US A 50. 0 50. 0 S mith & Tinker US A 29. 0 29. 0 Mint US A 14. 1 14. 1 Zoove US A 13. 2 13. 2 R ic hR elevanc e US A 12. 5 12. 5 Traffiq US A 10. 0 10. 0 MediaMath US A 10. 0 10. 0 B ill.c om US A 8. 5 8. 5 E do Interactive US A 8. 5 8. 5 InnoC entive US A 7. 3 7. 3 OneR iot US A 7. 0 7. 0 B alihoo US A 7. 0 7. 0 B oxee US A 6. 0 6. 0 P olyvore US A 5. 6 5. 6 Fanbas e US A 5. 0 5. 0 MOG US A 5. 0 5. 0 OurS tage US A 3. 0 3. 0 Z2L ive US A 3. 0 3. 0 K ODA US A 3. 0 3. 0 S coreloop G erma ny 2. 8 2. 8 R oblox US A 2. 2 2. 2 Tremor Media US A 2. 0 2. 0 iS oc ket US A 2. 0 2. 0 R ights Flow US A 1. 5 1. 5 P lis ta G erma ny 1. 4 1. 4 C hes s C ube S outh Africa 1. 3 1. 3 L inks ify US A 0. 5 0. 5 iS yndic a US A 0. 4 0. 4 Aug-09 Total 25.8 11.5 77.6 43.6 63.2 221.6
    • Page 18 Financing - L as t Three Months (US $ m) F in. Amount (Million) Type of financ ing Month C ompany Name C ountry Angel/S eed S eries A S eries B S eries C S eries D G rand Total S ep-09 E ns equenc e US A 20. 0 20. 0 InXpo US A 9. 0 9. 0 J obvite US A 8. 3 8. 3 NextB io US A 8. 0 8. 0 R iot G ames US A 8. 0 8. 0 YuMe US A 5. 0 5. 0 Moc apay US A 3. 0 3. 0 C onduit L abs US A 3. 0 3. 0 Fwix US A 2. 8 2. 8 Mas hL ogic US A 2. 5 2. 5 G reys tripe US A 2. 0 2. 0 FourS quare US A 1. 4 1. 4 E duFire US A 1. 3 1. 3 S ep-09 Total 16.9 19.3 18.0 20.0 74.2 G rand Total 90.8 39.5 133.6 113.1 110.2 487.1 Figure 23. Financing, Last Three Months Source. Company reports
    • Page 19 C ompany Des c riptions - C urrent Month C apital Market Ac tivity C ompany HQ Webs ite Des cription E duF ire United S ta tes www. edufire. com E duca tion R evolution, Inc. operates as an online community that provides online live video tutoring s ervices . It offers tutoring s ervices for s tudents covering various langua ges and preparing s tudents for exams on video chat s es s ions . T he company was founded in 2007 and is bas ed in S anta Monica , C alifornia. E ns equence United S ta tes www. ens equence. com E ns equence, Inc. offers interactive televis ion and digital broadcas ting s ervices . T he company’s platform ena bles online download, online a dvertis ing, and viewer res pons e meas urement s ervices . Additionally, it provides s ys tem implementation and integration, audience mea s urement, and cus tomer care s ervices . T he compa ny’s clientele include MT v, E S P N, B B C , Dis covery C hannel, J etix, HS N, Dis ney, F ord, Nike, HP , V is a , R eebok, T oyota, G eico, T ime W arner, C omcas t, and S ky. E ns equence, Inc. was founded in 2000 and is headqua rtered in P ortland, O regon with a dditional offices in New Y ork, C alifornia, and the United K ingdom. F ourS quare United S ta tes www. fours quare.com F ours quare S olutions Inc. des igns and develops s oftware for iphones . F ours quare S olutions Inc. is bas ed in New Y ork , New Y ork. F wix United S ta tes www. fwix. com F wix, Inc. owns a nd opera tes as an online portal which collects articles from different s ources and provides current information about a local a rea, including photos , videos , events , articles , reviews , and mus ic. T he company was founded in 2008 and is bas ed in Menlo P ark, G reys tripe United S ta tes www. greys tripe. com G alifornia. Inc. operates an ad-s upported mobile games and applications dis tribution platform. T he company provides online gaming and in- C reys tripe, game advertis ing s olutions through publis her s ites . Its AdW R AP product s uite ena bles brand advertis ers to communica te their brand mes s ages to mobile audience; publis hers to s erve ads through their games ; and cons umers to download games , as well as delivers images , videos , and s crolling banners to mobile games and applications . T he company’s s olutions a ls o include AdW R AP C ampaign Ma nager, an a dvertis ing W eb interfa ce that allows advertis ing agencies a nd ad res ellers to crea te and monitor mobile in-ga me a d campaigns ; AdW R AP C atalog P rogram, which enables partners to dis tribute a mobile game ca talog; and AdW R AP for P ublis hers platform that provides mobile game publis hers an automa ted proces s , which ad-enables mobile games and applications . It s erves developers , carriers and dis tributors , game players , and cons umer W eb s ites . T he company is bas ed in S an F rancis co, C alifornia. HiveL ive United S ta tes www. hivelive. com HiveLive Inc. provides enterpris e s ocial s oftware platforms . T he company’s on-demand s oftware enables companies to deploy cus tom-fit enterpris e communities built around people, rela tions hips , and s ha red knowledge. It offers LiveC onnect, provides a building-block approach for creating cus tom-fit online cus tomer communities ; and Hives , which are W eb 2. 0 building blocks tha t combine people, information, and permis s ions to create information res ources . HiveLive Inc. was founded in 2006 and is bas ed in B oulder, C olorado. InXpo United S ta tes www. inxpo. com InX po is the leading provider of priva tely-bra nded virtual events , including V irtua l T rade S hows , V irtual C areer F airs and V irtua l C orporate E vents , as well a s Audio and V ideo W ebcas ts . T hes e virtual s olutions dramatically reduce tra vel time and related cos ts , in addition to making the world a greener place to live. InXpo’s V irtual E vents provide P ublis hers with new online revenue opportunities and C orporations with the ability to generate leads , communicate, educate and network by connecting more effectively with their communities . J obvite United S ta tes www. jobvite. com J obvite, Inc. offers recruitment application that allows to collaborate on making hires . It s erves HR and s ta ffing executives , recruiters , hiring managers , executives , employees , and jobs eekers . T he company was founded in 2003 as F orumJ obs a nd changed its name to J obvite, Inc. in 2006. J obvite, Inc. is bas ed in S an F rancis co, C alifornia. Mas hL ogic United S ta tes www. ma s hlogic. com Mas hLogic Inc. offers mas hes to pers ona lize the applications for the us ers and bloggers . It adds relevant links to W ebs ites , pers onaliz es W eb pages , increas es vis ibility and reach of content and bra nd, and enriches W eb with links to s ources . T he company was founded in 2007 a nd is bas ed in Menlo P ark, C a lifornia . Mint.com United S ta tes www. mint. com Mint S oftware, Inc. provides a W eb-bas ed s olution for online fina ncial mana gement. It offers money mana gement, debt management, expens e tracking, inves tment ma nagement, budget management, mutual fund, IR A management, a nd financial pla nning s ervices . T he company als o provides s ugges tions bas ed on us er’s s pending patterns and a utomatic categorization of purcha s es . Mint S oftware, Inc. was founded in 2006 and is bas ed in Mountain V iew, C a lifornia . Mocapay United S ta tes www. mocapay. com Mocapa y, Inc. provides a mobile commerce pla tform tha t s upports integrated mobile payments , marketing, and dis tribution at point-of-s ale. It offers a ma rketing engine, which enables mes s aging cons umers before, during, a nd after a retail s tore trans action. T he company was formerly known a s F E E D and changed its name to Mocapay, Inc. in 2007. Mocapa y, Inc. was founded in 2006 and is bas ed in B oulder, United S ta tes www. nextbio. com C olorado. NextB io, Inc. provides s oftware a s a s ervice bas ed s earch s olutions to life s cience res earchers . It offers NextB io B as ic, a W eb application NextB io tha t provides acces s to a databas e of public data; NextB io P rofes s ional that allows the individual res earcher or groups of res earchers to exploit publicly available and internally generated experimental data to enable and accelerate new s cientific dis coveries ; and NextB io E nterpris e that provides collaboration acros s therapeutic groups and geographic boundaries for pharma ceutica l and biotechnology companies , commercial and non-profit res ea rch and development organiz ations , a nd academic ins titutions . T he company als o provides NextB io P latform that provides ontology-ba s ed s emantic fra mework that connects heterogeneous data a nd textual information, as well a s data analys is and curation, training, and s upport s ervices . NextB io, Inc. was founded in 2004 and is ba s ed in C upertino, C alifornia. It has s ales offices in New J ers ey; B os ton, Mas s achus etts ; and S an F rancis co, C alifornia. NowPublic C a nada www. nowpublic. com NowP ublic T echnologies , Inc. , a participatory news network, owns and operates NowP ublic. com platform for citizen journalis m. T he company provides politics , culture, enterta inment, and life photos and video headlines . It s erves Internet us ers , bloggers , a nd photography enthus ias ts . T he company was founded in 2005 a nd is bas ed in V ancouver, C anada. As of S eptember 2, 2009, NowP ublic T echnologies , Inc. operates as a s ubs idiary of T he W as hington E xaminer. R iot G ames United S ta tes www. riotgames . com R iot G ames , Inc. develops and publis hes online video games . It offers online titles for cons oles and the P C s . T he company was founded in 2006 and is bas ed in Los Angeles , C alifornia. S kype Luxembourg www. s kype. com S kype T echnologies S . A. provides S kype, a s oftware that enables individua ls and bus ines s es to ma ke free video and voice calls , s end ins tant mes s ages , and s ha re files with other S kype us ers . It als o enables to make calls to landlines and mobiles internationa lly. T he company als o provides heads ets , W ebca ms , and phones through its online s hop. It s erves us ers in Argentina, B raz il, C hile, C olombia, Mexico, P eru, and V enez uela. T he company was founded in 2003 and is bas ed in Luxembourg. As of October 14, 2005, S kype T echnologies S . A. is a s ubs idiary of eB ay Inc. Tiny P ictures United S ta tes www. tinypictures . us T iny P ictures , Inc. provides a s ervice for s haring of camera phone pictures and videos between friends . It offers R adar, a s ervice that enables us ers to s hare camera phone pictures and videos with friends . T he company was founded in 2005 a nd is bas ed in S an F rancis co, C alifornia. As of S eptember 10, 2009, T iny P ictures , Inc. operates as a s ubs idia ry of S hutterfly, Inc. YuMe United S ta tes www. yumenetwork s . com Y uMe, Inc. operates a s a video advertis ing network on W eb. It offers ad mana gement s ys tem tha t enables a dvertis ers and publis hers to identify, clas s ify, and track content through digital media platforms , s uch a s W eb, downloads , mobile, a nd IP T V . T he company als o enables publis hers to organize video on their s ite into content channels , s uch as automotive, financial s ervices , lifes tyle, news , mus ic, s ports , entertainment, and fa mily friendly. In addition, it offers real-time targeting, mea s urement, and optimization; content dis tribution and viral a dvertis ing opportunities ; a s uite of intera ctive ad placements ; a nd video monetiz ation s ervices . F urther, the company provides a beha viora l targeting s ys tem that enables advertis ers to target their mes s ages to viewers on a nationa l s cale bas ed on video viewing interes ts a nd purchas e intent. Y uMe, Inc. was founded in 2004 and is headquartered in R edwood C ity, C alifornia. Figure 24. Company Descriptions Source. Company reports, Capital IQ, Crunchbase
    • Page 20 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