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    09 10 27 Web 2.0 Weekly 09 10 27 Web 2.0 Weekly Document Transcript

    • SOFTWARE & SERVICES 27 OCTOBER 2009 DAVID SHORE, CFA, MBA 416.860.6784 WEB 2.O WEEKLY david.shore@researchcapital.com Damian Wojcichowsky, CFA (Associate), 416.860.7652 EARNINGS RO UND-UP: WEB 2.0 EARNINGS SEASON BEGINS GAM IN G CO M PA NI E S KI C K OF F E AR NI NG S SE A S O N I N T H E W E B 2 .0 U NI V E R SE … Changyou.com is a China-based developer and operator of online games – including its 2-D martial arts saga, Tian Long Ba Bu. The company reported revenue growth of 26% Y/Y in the third quarter, with revenue coming in at $68.7 million. Key operating metrics, which provide read-across colour on the state of broader gaming economics, include: registered accounts, up 46% Y/Y to 75.1 million; active paying accounts, up 20% Y/Y to 2.4 million; and average revenue per paying account, up 7% Y/Y to RMB190 (approximately US$28). Management guidance for $69-$71 million in revenue in Q4 is inline with analyst estimates. Sohu, another Chinese-based company that provides online portals in the People’s Republic of China, which include news, entertainment, and online gaming (through the recently spun-out Changyou.com which was previously its online gaming division), reported revenue growth of 13% Y/Y to $136.6 million. Gaming revenue grew 26% Y/Y, while advertising revenue declined 2% Y/Y (as a result of challenging comparisons against the third quarter last year in which advertising spending boomed ahead of the Beijing Olympics). Guidance for Q4 revenue of $134.5-$138.5 million is slightly below analyst consensus of $141.7 million, implying between 11% and 14% Y/Y growth for the quarter. … AN D SM AL L E R S OC IA L G AMI NG D E V EL O P ER S GE T I N ON T H E A CT I O N Watercooler, maker of online fan communities and sports-related social games, which boasts 26 million users primarily on Facebook and six other social networks, raised $5.5 million. Adding intrigue to the deal is the fact that Betfair, the legal online gambling site for horse racing, led the transaction. W e view the participation of Betfair as indicative of the attractiveness of online social gaming – indeed, with Betfair unable to operate its core business in the U.S. due to legal restrictions, an investment in W atercooler may represent a strategy that (1) brings the company closer to the lucrative U.S. market, and (2) brings social network-based gaming expertise into the company fold. F IN AL L Y – H AL L O W EE N S E EM S T O HA V E SC A RE D OF F I N V E ST O R S Deal flow slowed down to four transactions in the week – a week which saw 31 of 56 companies in our W eb 2.0 public comparables list (trading above $1 minimum) experience price declines in the market. Average deal size in the quarter dropped from $7.8 million last week to $7.6 million currently. Financing Activity Last Twelve Months 400.0 16.0 14.6 350.0 14.0 300.0 12.0 9.7 250.0 10.0 9.0 (US$m) (US$m) 7.6 7.6 200.0 8.0 7.0 7.0 7.1 6.5 6.6 6.2 150.0 5.5 6.0 4.9 100.0 4.0 50.0 2.0 0.0 0.0 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 *May-09 includes $200m FB investment Total Average 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 Eighty-nine public Web 2.0 companies: Our W eb 2.0 universe contains 89 companies, with a combined market cap of approximately $72 billion (Figure 1). The median market cap for the group is $44.5 million, with average trailing revenue of $161 million (median $57 million). The companies are also generally profitable with a median EBITDA margin of 12.5%. On a valuation basis, the overall average is 6.0x trailing revenue (median 1.9x) and 11.4x trailing EBITDA (median 9.8x). Twenty of the companies have more than 500 employees. C omparable C ompany Analys is > Web 2.0 Trading C urrent US D Market US D L TM Total US D L TM Total E B ITDA TE V/L TM TE V/L TM C ompany Name L TM as of Ticker E xc hange C urrency HQ P rice C ap ($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 United S ta tes 0. 55 15. 4 4. 4 (3.7) -83. 3% 4. 6x - 11 Actoz S oft C o. , Ltd. 6/30/2009 A052790 K OS E KR W S outh K orea 16,300 118. 3 108.7 25. 9 23. 8% 0. 8x 3. 3x NA AQ Interactive, Inc. 6/30/2009 3838 TS E JPY J a pan 48,400 29. 4 66. 1 (2.0) -2.9% 0. 1x - NA As s ociated Media Holdings Inc. 6/30/2007 AS MH OT C P K US D United S ta tes 0. 01 0.4 0. 1 (2.3) NM 12.6x - 3 B igs tring C orp. 6/30/2009 BS GC OT C B B US D United S ta tes 0. 03 2.0 0. 1 (1.5) NM 49.2x - 4 B eta wave C orporation 6/30/2009 B W AV OT C B B US D United S ta tes 0. 04 1.2 9. 4 (12. 6) NM - - 51 B eyond C ommerce, Inc. 6/30/2009 B Y OC OT C B B US D United S ta tes 0. 10 5.1 11. 7 (12. 8) NM 0. 9x - 101 B right T hings plc 3/31/2009 AIM: B G T AIM GBP United K ingdom 0. 01 5.4 0. 0 (2.7) NM - - NA B roa dW ebAs ia Inc. 9/30/2008 BWBA OT C P K US D United S ta tes 0. 03 2.5 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. 48 262. 8 361.6 25. 1 6.9% 0. 7x 10. 3x 2, 227 C hangyou. com L imited 6/30/2009 C Y OU Na s daqG S US D C hina 31. 30 1,721. 5 241.2 147.2 61. 0% 6. 0x 9. 8x 628 C hina G a teway C orporation 9/30/2008 CGWY OT C P K US D United S ta tes 0. 00 0.0 6. 7 (6.6) -98. 9% 0. 0x - 37 C hines e G amer Interna tiona l 6/30/2009 G T S M: 3083 GTS M TWD T aiwa n 428 1,110. 0 61. 6 34. 7 56. 3% 16.8x 29. 9x NA C LIC K E R Inc. 5/31/2009 C LK Z OT C B B US D United S ta tes 0. 01 0.9 2. 5 (1.2) -45. 8% 0. 4x - 22 C ornerW orld C orpora tion 7/31/2009 CWR L OT C B B US D United S ta tes 0. 06 5.7 6. 8 NM NM 2. 4x - 16 C yberplex Inc. 6/30/2009 T S X :C X TS X C AD C anada 1 77. 9 89. 8 9.7 10. 8% 0. 6x 6. 0x NA DADA S pA 6/30/2009 C M: DA CM E UR Italy 7. 47 177. 4 241.9 31. 8 13. 1% 0. 9x 7. 1x NA DXN Holdings B hd 5/31/2009 DX N K LS E MY R Ma la ys ia 0. 63 40. 9 77. 1 11. 1 14. 4% 0. 7x 5. 0x NA Dibz International, Inc. NA DIB Z OT C P K US D United S ta tes 0. 00 0.0 NA NM NM - - NA DigitalP os t Interactive, Inc. 6/30/2009 DG LP OT C B B US D United S ta tes 0. 06 4.6 1. 0 (1.4) NM 6. 7x - 7 DigitalT own, Inc. 8/31/2009 DG T W OT C B B US D United S ta tes 2. 00 54. 7 0. 0 (1.8) NM - - 3 Dolphin Digital Media , Inc. 6/30/2009 DP DM OT C B B US D United S ta tes 0. 49 26. 3 0. 6 (3.4) NM 46.9x - NA E olith C o. Ltd. 12/31/2008 A041060 K OS E KR W S outh K orea 575 34. 9 15. 4 (3.6) -23. 6% 2. 4x - NA E xtens ions , Inc. 6/30/2009 E XT I OT C P K US D United S ta tes 0. 25 11. 1 NM NM NM - - 2 F luid Mus ic C a nada , Inc. 6/30/2009 T S X :F MN TS X C AD United S ta tes 1. 90 91. 7 5. 3 (5.1) -95. 2% 16.4x - NA F rogs ter Interactive P ictures AG 6/30/2009 FRG XT R A E UR G ermany 19. 90 74. 7 9. 6 (4.5) -47. 0% 7. 6x - NA G ama nia Digita l E ntertainment C o., Ltd. 6/30/2009 6180 GTS M TWD T aiwa n 48. 85 228. 8 140.6 25. 1 17. 9% 1. 5x 8. 2x NA G ameOn C o Ltd. 6/30/2009 3812 TS E JPY J a pan 88,400 95. 6 81. 9 20. 1 24. 5% 0. 3x 1. 0x NA G eoS entric O yj 6/30/2009 G E O 1V HL S E E UR F inland 0. 05 65. 8 5. 4 (17. 4) NM 12.1x - 115 G iant Interactive G roup, Inc. 6/30/2009 GA NY S E US D C hina 8 1,730. 0 198.5 124.1 62. 5% - - 1, 570 G iga Media Ltd. 3/31/2009 G IG M Na s daqG S US D T aiwa n 4. 54 247. 5 183.6 NM NM 0. 9x - 751 G ravity C o., Ltd 6/30/2009 GR VY Na s daqG M US D S outh K orea 1. 60 44. 5 49. 1 16. 6 33. 9% - - 469 G ree, Inc. 6/30/2009 T S E : 3632 TS E JPY J a pan 5,040 2,523. 3 156.0 93. 7 60. 1% 15.4x 25. 7x NA G ungHo O nline E ntertainment, Inc. 6/30/2009 3765 OS E JPY J a pan 221,000 283. 1 119.5 26. 6 22. 2% 2. 1x 9. 4x NA HanbitS oft, Inc. 6/30/2009 A047080 K OS E KR W S outh K orea 3,560 65. 3 60. 7 1.4 2.3% 0. 9x 36. 6x NA IAC /InterActiveC orp. 6/30/2009 IAC I Na s daqG S US D United S ta tes 19. 07 2,524. 9 1, 392. 3 52. 7 3.8% 0. 6x 14. 9x 3, 200 IAS E nergy, Inc. 4/30/2009 IAS A. E OT C B B US D C anada 0. 11 7.4 0. 0 (0.6) NM - - NA is eemedia Inc. 3/31/2009 IE E T S XV C AD C anada 0. 14 6.6 1. 6 (5.0) NM 3. 6x - NA J umbuck E nterta inment Limited 6/30/2009 AS X :J MB AS X AUD Aus tralia 0. 34 14. 5 16. 7 7.2 42. 8% 0. 5x 1. 1x 79 K AB Dis tribution Inc. 6/30/2009 T S X :K AB TS X C AD C anada 0 0.6 67. 9 4.0 5.8% - - NA K ings oft C o. Ltd. 6/30/2009 3888 S E HK HK D C hina 8 1,058. 1 139.1 61. 4 44. 2% 7. 6x 17. 2x 2, 463 Lingo Media C orporation 6/30/2009 T S X V :LM T S XV C AD C anada 1. 00 11. 4 1. 2 (1.9) NM 8. 8x - NA LiveW orld Inc. 6/30/2009 LVW D OT C P K US D United S ta tes 0. 04 1.3 10. 6 (0.1) -1.2% 0. 0x - NA LookS mart, Ltd. 6/30/2009 L OO K Na s daqG M US D United S ta tes 1. 32 22. 6 56. 8 (4.4) -7.8% - - 90 Magnitude Information S ys tems Inc. 6/30/2009 MAG Y OT C B B US D United S ta tes 0. 01 4.1 0. 1 (2.5) NM - - 14 Mixi, Inc. 6/30/2009 2121 TS E JPY J a pan 737000. 00 1,270. 0 136.8 46. 2 33. 8% 8. 4x 24. 9x NA Modern T imes G roup Mtg AB 6/30/2009 MT G B OM SEK S weden 325. 70 3,082. 3 1, 971. 4 302.9 15. 4% 1. 9x 12. 1x 2, 969 MO K O .mobi Limited 6/30/2009 MK B AS X AUD Aus tralia 0. 08 7.3 0. 7 (2.4) NM 9. 1x - NA Myriad G roup AG 6/30/2009 MY R N SWX C HF S witzerland 4. 49 192. 5 63. 0 3.4 5.4% 3. 0x - 405 NE O W IZ G ames C orpora tion 12/31/2008 A095660 K OS E KR W S outh K orea 40500. 00 715. 5 207.3 55. 7 26. 8% 3. 4x 12. 7x NA NetDragon W ebS oft, Inc. 6/30/2009 777 S E HK HK D C hina 5 349. 9 89. 3 25. 7 28. 7% 2. 3x 8. 0x 3, 109 Neteas e. com Inc. 6/30/2009 NT E S Na s daqG S US D C hina 37. 70 4,879. 4 472.4 297.4 63. 0% - - 3, 109 NeuLion Incorporated 6/30/2009 T S X :NLN TS X C AD C anada 0. 76 77. 2 21. 5 (13. 0) -60. 3% 3. 1x - 237 NeXplore C orporation 6/30/2009 NX P C OT C P K US D United S ta tes 1 44. 1 1. 7 (13. 3) NM 28.3x - NA Ngi G roup Inc. 6/30/2009 2497 TS E JPY J a pan 30300. 00 42. 0 93. 0 6.9 7.4% - - NA Northgate T echnologies L imited 6/30/2009 590057 BSE INR India 35. 55 25. 8 82. 9 (41. 5) -50. 0% 0. 3x - NA O pen T ext C orp. 6/30/2009 OT E X Na s daqG S US D C anada 39. 53 2,219. 6 785.7 205.1 26. 1% 2. 9x 11. 0x 3, 411 O penwave S ys tems Inc. 6/30/2009 OP W V Na s daqG S US D United S ta tes 2. 75 229. 7 191.7 4.9 2.6% 0. 6x 24. 6x 590 P erfect W orld C o. , Ltd. 6/30/2009 PWRD Na s daqG S US D C hina 45. 11 2,218. 6 255.6 142.2 55. 6% 0. 7x 1. 3x 2, 096 P NI Digital Media Inc. 6/30/2009 T S X V :P N T S XV C AD C anada 1. 70 53. 5 21. 0 2.3 11. 0% 2. 5x 22. 3x NA Q uepa s a C orp. 6/30/2009 QP S A OT C B B US D United S ta tes 1 17. 2 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. 60 222. 0 157.4 20. 6 13. 1% 0. 0x 0. 4x NA S handa Interactive E nterta inment Ltd. 6/30/2009 S NDA Na s daqG S US D C hina 46. 03 3,095. 8 629.0 296.7 47. 2% - - 3, 124 S hutterfly, Inc. 6/30/2009 S FLY Na s daqG S US D United S ta tes 14. 51 369. 4 218.6 27. 3 12. 5% 1. 4x 11. 2x 514 S K C ommunications C o., Ltd. 12/31/2008 A066270 K OS E KR W S outh K orea 7800. 00 273. 7 192.7 12. 5 6.5% 1. 4x 21. 8x NA S NAP Interactive, Inc. 6/30/2009 S TVI OT C B B US D United S ta tes 0 3.8 3. 5 0.9 27. 0% 0. 6x 2. 3x 11 S NM G loba l Holdings 9/30/2008 S NMN OT C P K US D United S ta tes 0. 00 0.0 2. 0 (0.7) -34. 8% 1. 1x - 33 S ocial Media V entures Inc. 12/31/2008 S MV I OT C P K US D United S ta tes 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 United S ta tes 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 60. 85 2,332. 6 485.1 209.6 43. 2% 3. 8x 8. 7x 3, 197 S park Networks , Inc. 6/30/2009 L OV AME X US D United S ta tes 3 52. 7 50. 5 10. 8 21. 3% 1. 0x 4. 7x 183 S pectrumDNA, Inc. 6/30/2009 S P XA OT C B B US D United S ta tes 0 4.9 0. 1 (2.5) NM 39.9x - 7 T encent Holdings Ltd. 6/30/2009 700 S E HK HK D C hina 149 34, 855.4 1, 391. 6 680.3 48. 9% 27.6x - 6, 421 T he P arent C ompany 8/2/2008 K IDS . Q OT C P K US D United S ta tes 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. 03 201. 5 250.6 85. 5 34. 1% - - 1, 626 T heS treet. com, Inc. 3/31/2009 TS CM Na s daqG M US D United S ta tes 2. 86 87. 5 67. 0 1.9 2.9% 0. 3x 11. 8x 310 T ree.C om, Inc. 6/30/2009 TR E E Na s daqG M US D United S ta tes 7. 83 84. 6 216.6 (0.7) -0.3% 0. 4x - 700 Unis erve C ommunica tions C orp. 5/31/2009 T S X V :US S T S XV C AD C anada 0. 05 1.1 17. 1 (0.2) -1.0% 0. 2x - NA United O nline Inc. 6/30/2009 UNT D Na s daqG S US D United S ta tes 8. 68 727. 7 949.8 203.2 21. 4% 1. 0x 4. 9x 1, 469 UOMO Media, Inc 7/31/2009 UO MO OT C B B US D C anada 0 8.6 0. 8 (0.4) -54. 2% 11.5x - NA V alueC lick Inc. 6/30/2009 V C LK Na s daqG S US D United S ta tes 13 1,112. 9 563.6 99. 0 17. 6% 1. 7x 9. 9x 1, 189 V OIS , Inc. 6/30/2009 V O IS OT C B B US D United S ta tes 0 4.1 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 2. 90 34. 4 23. 2 2.3 9.9% - - 328 W izzard S oftwa re C orporation 6/30/2009 W ZE AME X US D United S ta tes 0. 42 21. 2 5. 3 (4.5) -84. 9% 4. 2x - 110 W orlds . com Inc. 6/30/2009 W DDD OT C B B US D United S ta tes 0. 10 5.2 0. 1 (0.7) NM - - 1 W ynds torm C orpora tion NA W Y ND OT C P K US D United S ta tes 0. 10 1.8 NA NM NM - - NA XING AG 6/30/2009 O 1B C XT R A E UR G ermany 36. 41 281. 1 58. 9 17. 0 28. 8% 3. 9x 13. 5x 246 Y D O nline C orp. 12/31/2007 A052770 K OS E KR W S outh K orea 7750. 00 97. 4 57. 4 12. 4 21. 6% 1. 9x 8. 6x NA Y nk K orea Inc. 12/31/2008 A023770 K OS E KR W S outh K orea 4300. 00 19. 2 11. 9 1.3 10. 5% - - NA High 34, 855.4 1,971. 4 680. 3 63. 0% 49.2x 36. 6x 6, 421 Low 0.0 0. 0 -41.5 -98. 9% - - 1 Average 810.8 161.2 39.0 6.1% 6.0x 11.4x 936 Median 44. 5 57.1 1. 7 12. 5% 1. 9x 9. 8x 246 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 ) Pace of deal signings slows: Total transaction value in the W eb 2.0 universe for October is $151.2 (vs. $125.2 million at time of last publication). The week ending October 26 has brought four financings to the sector, bringing the total for October to 20 transactions averaging $7.6 million each (vs. an average of $7.8 million last week). In comparison, total capital raised in September was $232.8 million, averaging $9.0 million (26 deals); August was $232.8 million, averaging $7.6 million (29 deals); and July (35 deals) $191.4 million, averaging $5.5 million. Financing Activity Last Twelve Months 400.0 16.0 14.6 350.0 14.0 300.0 12.0 9.7 250.0 10.0 9.0 (US$m) (US$m) 200.0 7.6 7.6 8.0 7.0 7.0 7.1 6.5 6.6 6.2 150.0 5.5 6.0 4.9 100.0 4.0 50.0 2.0 0.0 0.0 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 *May-09 includes $200m FB investment Total Average Figure 2. Financings, Last Twelve Months Source. Company reports
    • Page 4 Deal round-up for October (to date): The large deal highlights for the month include: • DailyMotion – a French online video content provider – raised $25.3 million through a Series C financing. • Yext – an online directory provider – raised $25 million. • PopCap Games – a developer of casual games played on multiple types of devices – raised $22.5 million in its first round of funding. • Engine Yard – provider of managed hosting and deployment solutions for Ruby and Rails applications – raised $19 million in a Series C financing. • Ecast Network – operator of a broadband touch screen network in the U.S. – raised $17 million in a follow-on unattributed financing. • HubSpot – provider of online enterprise marketing application – received $16 million in Series C financing. • Jive Software – maker of enterprise collaboration and social community software – raised $12 million in a Series B financing by returning VC fund, Sequoia. All other deals in the month were in the amount of $10 million or less. For additional details on financings, see Figures 23 and 24 (at end of note). Financing & M/A Summary - Last Three Months 200.0 180.0 160.0 140.0 120.0 Oct-09 (US$m) 100.0 Sep-09 Aug-09 80.0 60.0 40.0 20.0 0.0 DailyMotion Jive Software MediaMath Mzinga InXpo NextBio Reality Mobile Boxee HiveLive Polyvore Aviary Mocapay Fwix Vantrix Fizzback Roblox Linkedex Twitter MOG Yext RightsFlow Skype Zoove RichRelevance Ooyala Edo Interactive Jobvite InnoCentive Booyah YuMe Z2Live Overtone Greystripe DailyBooth iSyndica OnLive NowPublic Ecast Network Livebookings Alliance Health Networks MashLogic Tiny Pictures DataSync Linksify Dopplr Unisfair Fluther VEVO Mint HubSpot OneRiot iSocket KODA Technorati Turbine Friends Reunited Ensequence iLike Engine Yard Traffiq Balihoo Vuclip Fanbase Vdopia NeoEdge OurStage ViVu Scoreloop Tremor Media Loomia Plista FourSquare EduFire ChessCube Chango Listia Scout Labs Conduit Labs Gigpark FeedRoom Bill.com Smith & Tinker Spigit Amie Street TransGaming Inc. PopCap Games Riot Games Sometrics Imeem Gamelab.com Watercooler Figure 3. Capital Market Activity, Last Three Months Source. Company reports
    • Page 5 Social Networks the most active sector: Social Networks experienced the most financing activity among our W eb 2.0 sector categories in the past three months by number of transactions (11). Advertising continues to be among the highest activity sectors with 10 deals in the past quarter. Gaming follows with nine transactions followed by Video (6) (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 2,025.0 192.3 122.0 100.0 96.4 70.3 61.8 46.0 37.9 35.5 34.0 29.1 26.1 17.1 15.8 14.0 13.2 13.0 11.5 3.9 2.8 2.0 1.3 0.4 0.0 Comment/Reputation Social Commerce Communities Gaming Microblog Collaboration Enterprise Mobile Media Online Learning Music SMS/Voice Infrastructure Search Advertising/Mobile Mobile Ad Classified Social Networks Video Advertising Crowdsourced Virtual World Aggregation Analytics Vertical Content # companies 1 3 9 1 11 6 10 4 4 5 3 4 4 3 5 2 1 2 4 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 Q1/09. Since then, the index has diverged in a much stronger recovery relative to the NASDAQ index (Figure 5). Web 2.0 Index Price Performance 300 250 200 150 100 50 0 10/27/2008 11/10/2008 11/24/2008 12/8/2008 12/22/2008 1/5/2009 1/19/2009 2/2/2009 2/16/2009 3/2/2009 3/16/2009 3/30/2009 4/13/2009 4/27/2009 5/11/2009 5/25/2009 6/8/2009 6/22/2009 7/6/2009 7/20/2009 8/3/2009 8/17/2009 8/31/2009 9/14/2009 9/28/2009 10/12/2009 10/26/2009 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: Fourteen companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), while 31 companies showed negative 1-week returns. 1 Week P rice P erformance Fluid Mus ic Canada, Inc. 37.7% Mix i, Inc. 15.2% L ookS ma rt, Ltd. 10.2% Webz en Inc. 9.5% NEOWIZ G ames Corporation 9.3% Openw ave S y s tems Inc. 8.7% Ngi G roup Inc. 7.4% OA O R B C Inf ormation S y s tems 6.7% Y nk K orea Inc. 6.6% A ctoz S oft Co., Ltd. 4.5% G ree, Inc. 4.1% Cy berplex Inc. 1.6% G iant Interactive G roup, Inc. 0.7% Perf ect World Co., Ltd. 0.3% My riad G roup A G -0.2% IA C/InterA ctiveCorp. -0.6% Tree.Com, Inc. -0.9% Modern Times G roup Mtg A B -1.0% A Q Interactive, Inc. -1.2% Changy ou.com Limited -1.3% X ING A G -1.9% G ameOn Co Ltd. -1.9% CDC Corp. -2.0% Northgate Technologies Limited -2.1% G amania Digital Entertainment Co., Ltd. -2.3% G ravity Co., Ltd -2.4% PNI Digital Media Inc. -2.9% DA DA S pA -2.9% Frogs ter Interactive Pictures A G -2.9% Open Tex t Corp. -3.4% Quepas a Corp. -3.6% United Online Inc. -3.9% Y D Online Corp. -4.2% Neteas e.com Inc. -4.2% TheS treet.c om, Inc. -4.7% Eolith Co. Ltd. -5.0% S K Communica tions Co., Ltd. -5.0% G igaMedia Ltd. -5.6% S handa Interactive Entertainment Ltd. -6.8% V alueClick Inc. -7.1% S hutterf ly , Inc. -8.9% The9 Limited -9.7% Chines e G amer International -9.9% HanbitS oft, Inc. -12.9% S ohu.com Inc. -13.1% -0.2 -0.1 0 0.1 0.2 0.3 0.4 0.5 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 C ompany Headline Notes Open Text C orp. (Nas daqG S :OTE X) B ehr P roces s C orporation L aunches Newly E nhanced O pen T ext announced that B ehr P roces s C orporation has launched its newly enhanced B E HR . com s upported by B E HR . com S upported by V ignette C ontent Management V ignette C ontent Management from O pen T ext C orp. V ignette W eb C ontent Management S olutions from O pen T ext from O pen T ext provide advanced rich media management capabilities and a high-performance foundation for B E HR . com, enabling deep interactivity and an eas ier, immers ive W eb s ite experience. Development utilizing Adobe F lex and F las h allows B E HR .com to project large magazine-s tyle images and cinematic trans itions from page to page. B E HR . com als o leverages the company's dynamic caching technology to pres ent a high volume of content while improving performance that res ults in a great end-us er experience. S hutterfly, Inc . (Nas daqG S : S FL Y) S hutterfly's P ro G allery S ervice Introduces Digital S hutterfly Inc. announced the addition of Digital Download to its P ro G allery s ervice, a s tore front for profes s ional Download photographers to s ell their photos . W ith the new Digital Download feature, profes s ional photographers can now s ell high res olution copies of their images to cus tomers directly from their P ro G allery account. T he company's P ro G allery s ervice offers profes s ionals premium s ervice with web pres ence, top-quality profes s ional photo printing s ervices , full- s ervice order proces s ing and fulfillment and world clas s cus tomer s ervice. P ro G allery photographers als o receive online s ales reports , photo s torage, and image rights protection. S ites earc h C orporation S ites earch C orporation Announces R es ignation of J ames S ites earch C orporation announced that on O ctober 19, 2009, Mr. J ames S . Dixon res igned as a member of the board S . Dixon from the B oard of directors of the company. The9 L imited (Nas daqG S :NC TY) T he9 L imited, Annual G eneral Meeting, O ct 20, 2009 T he9 L imited, Annual G eneral Meeting, O ct 20, 2009 Agenda: T o re-elect and appoint Davin Alexander Mackenzie, K a K eung Y eung and C hao Y ong W ang an independent director (C las s II) of the C ompany, effective from the clos ing of the Annual G eneral Meeting held on O ctober 20, 2009, to s erve for 3 year term ending at the 2012 Annual G eneral Meeting or until his s ucces s or is duly elected and qualified. Alpha C apital AG ; B igs tring C orp. V IP C onnectz US A, Inc. cancelled the acquis ition of V IP C onnectz US A, Inc. s igned a non-binding letter of intent to acquire B igs tring C orp. (O T C B B : B S G C ) in a revers e (OTC B B : B S G C ); C hes tnut R idge B igs tring C orp. (O T C B B : B S G C ) in a revers e merger merger trans action on O ctober 20, 2008. Under the terms of the letter of intent, B igS tring will is s ue unregis tered s hares P artners , L .P .; E xc alibur C apital trans action. of common s tock equal to 50% of the s um of the total number of s hares of B igS tring common s tock is s ued and Management Inc .; Iroquois C apital, L P ; outs tanding plus the number of s hares of B igS tring common s tock available for is s uance upon the convers ion of P enn Footwear C o.; Tudor Inves tment B igS tring’s outs tanding convertible notes and S eries A P referred S tock, in exchange for all of V IP C onnectz’s capital C orporation; VIP C onnec tz US A, Inc .; s tock. After the clos ing of the trans action E dward J . W eaver, P res ident and C hief E xecutive O fficer of V IP C onnectz, W halehaven C apital F und L imited will s erve as P res ident and C hief E xecutive O fficer of B igS tring. Darin Myman, P res ident and C hief E xecutive O fficer of B igS tring, will become V ice P res ident of S trategic Development of B igS tring. T he trans action is s ubject to s everal conditions , including execution of definitive agreement. Modern Times G roup Mtg AB (OM:MTG Modern T imes G roup Mtg AB R eports E arnings R es ults Modern T imes G roup Mtg AB reported earnings res ults for the third quarter and firs t nine months of 2009. F or the B) for the T hird Q uarter and F irs t Nine Months of 2009 quarter, net profit was S E K 254 million, compared with S E K 405 million a year earlier. P retax profit came in at S E K 336 million agains t S E K 595 million. O perating income decreas ed to S E K 377 million from S E K 574 million. Net s ales ros e 7% to S E K 3. 177 billion. F or the firs t nine months of 2009, the company reported a net profit of S E K 836 million agains t S E K 1. 225 billion in the previous year. T he figure excludes S E K 1. 173 billion of income from the dis continued DT V G roup in 2008. P retax profit declined to S E K 1. 096 billion from S E K 1. 79 billion. O perating income s tood at S E K 1. 199 billion agains t S E K 1.753 billion. S ales increas ed 8% to S E K 10. 097 billion. DigitalPos t Interac tive, Inc . DigitalP os t Interactive S igns C ontracts with T wo P hoto DigitalP os t Interactive Inc. announced the s igning of new contracts with two photo companies . (OTC B B : DG L P ) C ompanies The9 L imited (Nas daqG S :NC TY) C oughlin S toia G eller R udman & R obbins L L P F iles C oughlin S toia G eller R udman & R obbins L L P announced that a clas s action has been commenced in the United C las s Action S uit agains t T he9, L td S tates Dis trict C ourt for the S outhern Dis trict of New Y ork on behalf of purchas ers of American Depos itary S hares of T he9 L imited between November 15, 2006 and J uly 15, 2009, inclus ive (the 'C las s P eriod'), agains t T he9 and certain of the officers and/or directors of T he9 for violations of the S ecurities E xchange Act of 1934 (the 'E xchange Act'). T he complaint charges T he9 and certain directors and officers of T he9 with violations of the E xchange Act. T he9 is an online game operator and developer in C hina. According to the complaint, during the C las s P eriod, the C ompany, directly and through its affiliates and/or s ubs idiaries , operated licens ed mas s ively multiplayer online role-playing games and advanced cas ual games in C hina, including W orld of W arcraft, S oul of T he Ultimate Nation, G ranado E s pada, E A S P OR T S F IF A O nline 2, and Atlantica. It als o operated other licens ed games in mainland C hina, including Audition 2 and F ield of Honor. P laintiff s eeks to recover damages on behalf of all purchas ers of T he9 ADS s during the C las s P eriod Figure 7a. Key Developments Source. Capital IQ
    • Page 9 K ey Developments C ompany Headline Notes OAO R B C Information S ys tems O AO R B C Information S ys tems P rovides R evenues O AO R B C Information S ys tems provides revenues outlook for the full year of 2009. R evenue of company is expected (R TS : R B C I) O utlook for the F ull Y ear of 2009 to decreas e 26% on the year to R UB 3. 9 billion in 2009. Unis erve C ommunic ations C orp. Unis erve C ommunications C orp. Announces E xecutive Unis erve C ommunications C orp. announced that W illiam S pratt has res igned as the C E O and a Director of the (TS XV: US S ) C hanges company. Michael S chmidt who has s erved as the company's P res ident has agreed to join the B oard and take on the expanded role as C E O . Neteas e.c om Inc . (Nas daqGS : NTE S ) Neteas e.com Inc. to L aunch G ame.163. com Neteas e.com Inc. is to launch online game cons ulting webs ite game. 163. com. V ia the move, NetE as e. com aims to enhance its s aying right in the indus try, gues s ed indus try watchers , adding that the launch of the s ite will als o bring advertis ing revenues for NetE as e. com. T he new s ite will focus on indus try news and product news and promote online games like W orld of W arcraft (W oW ) and J X 3 Online at important pos itions . However, the company made no comment on the is s ue. W izzard S oftware C orporation W izzard Media Announces E ight New P odcas t W izzard Media announced eight new podcas t companion iP hone(T M) Apps approved and available for s ale in the App (AME X: WZE ) C ompanion Apps S tore. T he newly approved Apps are iP hone companion Apps for popular podcas ts offering convenient acces s to the podcas t, s how extras , bonus content and new s ocial communication features . T his brings the total number of W izzard Apps to 58 with 34 awaiting approval and another 20 to be uploaded for anticipated approval in O ctober. T he newly releas ed Apps include, get R eal is currently the #58 podcas t in the B us ines s s ection of iT unes (R ). Quepas a C orp. (OTC B B : QP S A) Q uepas a Introduces New Dis tributed S ocial Media Q uepas a C orp. announced the introduction of a new ad product revenue platform, Dis tributed S ocial Media (DS M). R evenue P latform Q uepas a's DS M is a new viral ad product that allows Q uepas a to leverage not only its s ocial network, but als o all other s ocial networking s ites . T his new approach will allow advertis ers and brands to target and dis tribute their marketing mes s age acros s all s ocial media s ites through Q uepas a. com. T hes e us er-generated campaigns are extremely viral and create great word-of-mouth marketing for the brands by motivating us ers to s hare content with friends and colleagues acros s all of the popular s ocial media s ites . T he effect for brands is that they are able to have a cons is tent brand mes s age delivered to a broad us er bas e at the lowes t equivalent cos t per impres s ion compared to mos t any other forms of advertis ing. At the s ame time, Q uepas a's DS M addres s es the bigges t problem typically faced by brands when trying to launch s ocial network driven campaigns in terms of achieving meaningful us er engagement while providing real time R O I metrics . As part of this new s trategy, Q uepas a intends to expand its s ales efforts for both the Q u B eyond C ommerc e, Inc . B eyond C ommerce, Inc. Accepts R es ignation of W endy O n O ctober 22, 2009, B eyond C ommerce, Inc. accepted the res ignation, dated (OTC B B : B YOC ) B orow-J ohns on as P res ident O ctober 19, 2009, of W endy B orow-J ohns on as P res ident of B rand Management. Ms . J ohns on will continue with the C ompany as a S pecial Advis or and C ons ultant as it pertains to the C ompany's communications and media needs . S ites earc h C orporation S ites earch C orporation announced delayed annual 10-K O n 10/23/2009, S ites earch C orporation announced that they will be unable to file their next 10-K by the deadline filing required by the S E C . G iant Interac tive G roup, Inc . G iant Interactive P artners with As trum Nival to L icens e G iant Interactive G roup, Inc. announced that it s igned an agreement with As trum Nival, L L C to grant a licens e to (NYS E : G A) ZT O nline in R us s ia As trum Nival to operate ZT Online, G iant's flags hip 2D mas s ively multiplayer online role playing game ('MMO R P G '), in the R us s ian F ederation and other R us s ian s peaking territories . ZT O nline is G iant Interactive's firs t internally- developed 2D free-to-play MMO R P G . S ince its commercial launch, ZT O nline has reached peak concurrent us er (P C U) levels over 2. 1 million and was voted the mos t popular game in C hina in 2006 according to International Data C orporation. As a free-to-play game, revenues are derived from in-game purchas es of virtual items and s ervices . ZT O nline is currently operated in Mainland C hina by the C ompany and in Hong K ong, Macau, T aiwan, Malays ia and S ingapore via a licens e to L ager Network. Additionally, G iant has als o granted a licens e to V inaG ame S oftware S ervice J oint S tock C ompany, or V inaG ame, to operate ZT O nline in V ietnam. C hangyou.c om L imited C hangyou. com L imited R eports Unaudited C ons olidated C hangyou. com L imited reported unaudited cons olidated earnings res ults for the third quarter and nine months ended (Nas daqG S :C YOU) E arnings R es ults for the T hird Q uarter and Nine Months S eptember 30, 2009. F or the quarter, the company's total revenues were $68, 684, 000 agains t $54, 604, 000 a year ago. E nded S eptember 30, 2009; P rovides E arnings G uidance T he increas es were mainly due to increas ed popularity of the company's flags hip game, T LB B . O perating profit was for the F ourth Q uarter of 2009 $42, 288, 000 agains t $32,474, 000 a year ago. Income before income tax expens e was $43,288, 000 agains t $32, 791, 000 a year ago. Net income was $37, 794, 000 agains t $32, 084,000 a year ago. Diluted net income per ADS was $0. 71 agains t $0. 68 a year ago. Non-G AAP operating profit was $45, 842, 000 agains t $33, 725, 000 a year ago. Non-G AAP net income was $41, 348, 000 agains t $33, 335, 000 a year ago. Non-G AAP diluted net income per ADS was $0. 77 agains t $0. 70 a year ago. O perating cas h flow was a net inflow of $46. 2 million. F or the nine months , the company's total revenues were $196, 887, 000 agains t $143, 455, 000 a year ago. O perating profit was $119, 624, 000 agains t $81, 537, 000 a year ago. Income before income tax expens e was $122, 170, 000 agains t $81, 705, 000 a year ago. Net income was $105, 826, 000 agains t $78, 914, 000 a year ago. Diluted net income per T he company es timates total revenues for the fourth quarter of 2009 to be between $69. 0 million and $71. 0 million. Non S ohu.c om Inc . (Nas daqG S : S OHU) S ohu. com Inc. R eports Unaudited C ons olidated E arnings S ohu. com Inc. reported unaudited cons olidated earnings res ults for the third quarter and nine months ended R es ults for the T hird Q uarter and Nine Months E nded S eptember 30, 2009. F or the quarter, the company reported net income attributable to company of $37, 354, 000 or S eptember 30, 2009; P rovides E arnings G uidance for the $0. 88 per s hare on total revenue of $136, 585, 000 agains t net income attributable to company was $40, 261, 000 or F ourth Q uarter of 2009 $1. 02 per s hare on total revenue of $120, 676, 000 in the s ame period of las t year. O perating profit was $52, 953, 000 agains t $43, 758, 000 in the s ame period of las t year. Income before income tax expens e was $54, 102, 000 agains t $45, 230, 000 in the s ame period of las t year. Income from continuing operations was $47, 080, 000 agains t $40, 238, 000 in the s ame period of las t year. As per non-G AAP , net income attributable to company was $40, 921, 000 or $0. 96 per s hare on total revenue of $136, 585, 000 agains t net income attributable to company was $42, 822, 000 or $1. 08 per s hare on total revenue of $120, 676, 000 in the s ame period of las t year. As per non-G AAP , operating profit was $57, 077, 000 agains t $46,319, 000 in the s ame period of las t year. Figure 7b. Key Developments Source. Capital IQ
    • Page 10 K ey Developments C ompany Headline Notes OAO R B C Information S ys tems O AO R B C Information S ys tems P rovides R evenues O AO R B C Information S ys tems provides revenues outlook for the full year of 2009. R evenue of company is expected (R TS : R B C I) O utlook for the F ull Y ear of 2009 to decreas e 26% on the year to R UB 3. 9 billion in 2009. Unis erve C ommunic ations C orp. Unis erve C ommunications C orp. Announces E xecutive Unis erve C ommunications C orp. announced that W illiam S pratt has res igned as the C E O and a Director of the (TS XV: US S ) C hanges company. Michael S chmidt who has s erved as the company's P res ident has agreed to join the B oard and take on the expanded role as C E O . Neteas e.c om Inc . (Nas daqGS : NTE S ) Neteas e.com Inc. to L aunch G ame.163. com Neteas e.com Inc. is to launch online game cons ulting webs ite game. 163. com. V ia the move, NetE as e. com aims to enhance its s aying right in the indus try, gues s ed indus try watchers , adding that the launch of the s ite will als o bring advertis ing revenues for NetE as e. com. T he new s ite will focus on indus try news and product news and promote online games like W orld of W arcraft (W oW ) and J X 3 Online at important pos itions . However, the company made no comment on the is s ue. W izzard S oftware C orporation W izzard Media Announces E ight New P odcas t W izzard Media announced eight new podcas t companion iP hone(T M) Apps approved and available for s ale in the App (AME X: WZE ) C ompanion Apps S tore. T he newly approved Apps are iP hone companion Apps for popular podcas ts offering convenient acces s to the podcas t, s how extras , bonus content and new s ocial communication features . T his brings the total number of W izzard Apps to 58 with 34 awaiting approval and another 20 to be uploaded for anticipated approval in O ctober. T he newly releas ed Apps include, get R eal is currently the #58 podcas t in the B us ines s s ection of iT unes (R ). Quepas a C orp. (OTC B B : QP S A) Q uepas a Introduces New Dis tributed S ocial Media Q uepas a C orp. announced the introduction of a new ad product revenue platform, Dis tributed S ocial Media (DS M). R evenue P latform Q uepas a's DS M is a new viral ad product that allows Q uepas a to leverage not only its s ocial network, but als o all other s ocial networking s ites . T his new approach will allow advertis ers and brands to target and dis tribute their marketing mes s age acros s all s ocial media s ites through Q uepas a. com. T hes e us er-generated campaigns are extremely viral and create great word-of-mouth marketing for the brands by motivating us ers to s hare content with friends and colleagues acros s all of the popular s ocial media s ites . T he effect for brands is that they are able to have a cons is tent brand mes s age delivered to a broad us er bas e at the lowes t equivalent cos t per impres s ion compared to mos t any other forms of advertis ing. At the s ame time, Q uepas a's DS M addres s es the bigges t problem typically faced by brands when trying to launch s ocial network driven campaigns in terms of achieving meaningful us er engagement while providing real time R O I metrics . As part of this new s trategy, Q uepas a intends to expand its s ales efforts for both the Q u B eyond C ommerc e, Inc . B eyond C ommerce, Inc. Accepts R es ignation of W endy O n O ctober 22, 2009, B eyond C ommerce, Inc. accepted the res ignation, dated (OTC B B : B YOC ) B orow-J ohns on as P res ident O ctober 19, 2009, of W endy B orow-J ohns on as P res ident of B rand Management. Ms . J ohns on will continue with the C ompany as a S pecial Advis or and C ons ultant as it pertains to the C ompany's communications and media needs . S ites earc h C orporation S ites earch C orporation announced delayed annual 10-K O n 10/23/2009, S ites earch C orporation announced that they will be unable to file their next 10-K by the deadline filing required by the S E C . G iant Interac tive G roup, Inc . G iant Interactive P artners with As trum Nival to L icens e G iant Interactive G roup, Inc. announced that it s igned an agreement with As trum Nival, L L C to grant a licens e to (NYS E : G A) ZT O nline in R us s ia As trum Nival to operate ZT Online, G iant's flags hip 2D mas s ively multiplayer online role playing game ('MMO R P G '), in the R us s ian F ederation and other R us s ian s peaking territories . ZT O nline is G iant Interactive's firs t internally- developed 2D free-to-play MMO R P G . S ince its commercial launch, ZT O nline has reached peak concurrent us er (P C U) levels over 2. 1 million and was voted the mos t popular game in C hina in 2006 according to International Data C orporation. As a free-to-play game, revenues are derived from in-game purchas es of virtual items and s ervices . ZT O nline is currently operated in Mainland C hina by the C ompany and in Hong K ong, Macau, T aiwan, Malays ia and S ingapore via a licens e to L ager Network. Additionally, G iant has als o granted a licens e to V inaG ame S oftware S ervice J oint S tock C ompany, or V inaG ame, to operate ZT O nline in V ietnam. C hangyou.c om L imited C hangyou. com L imited R eports Unaudited C ons olidated C hangyou. com L imited reported unaudited cons olidated earnings res ults for the third quarter and nine months ended (Nas daqG S :C YOU) E arnings R es ults for the T hird Q uarter and Nine Months S eptember 30, 2009. F or the quarter, the company's total revenues were $68, 684, 000 agains t $54, 604, 000 a year ago. E nded S eptember 30, 2009; P rovides E arnings G uidance T he increas es were mainly due to increas ed popularity of the company's flags hip game, T LB B . O perating profit was for the F ourth Q uarter of 2009 $42, 288, 000 agains t $32,474, 000 a year ago. Income before income tax expens e was $43,288, 000 agains t $32, 791, 000 a year ago. Net income was $37, 794, 000 agains t $32, 084,000 a year ago. Diluted net income per ADS was $0. 71 agains t $0. 68 a year ago. Non-G AAP operating profit was $45, 842, 000 agains t $33, 725, 000 a year ago. Non-G AAP net income was $41, 348, 000 agains t $33, 335, 000 a year ago. Non-G AAP diluted net income per ADS was $0. 77 agains t $0. 70 a year ago. O perating cas h flow was a net inflow of $46. 2 million. F or the nine months , the company's total revenues were $196, 887, 000 agains t $143, 455, 000 a year ago. O perating profit was $119, 624, 000 agains t $81, 537, 000 a year ago. Income before income tax expens e was $122, 170, 000 agains t $81, 705, 000 a year ago. Net income was $105, 826, 000 agains t $78, 914, 000 a year ago. Diluted net income per T he company es timates total revenues for the fourth quarter of 2009 to be between $69. 0 million and $71. 0 million. Non S ohu.c om Inc . (Nas daqG S : S OHU) S ohu. com Inc. R eports Unaudited C ons olidated E arnings S ohu. com Inc. reported unaudited cons olidated earnings res ults for the third quarter and nine months ended R es ults for the T hird Q uarter and Nine Months E nded S eptember 30, 2009. F or the quarter, the company reported net income attributable to company of $37, 354, 000 or S eptember 30, 2009; P rovides E arnings G uidance for the $0. 88 per s hare on total revenue of $136, 585, 000 agains t net income attributable to company was $40, 261, 000 or F ourth Q uarter of 2009 $1. 02 per s hare on total revenue of $120, 676, 000 in the s ame period of las t year. O perating profit was $52, 953, 000 agains t $43, 758, 000 in the s ame period of las t year. Income before income tax expens e was $54, 102, 000 agains t $45, 230, 000 in the s ame period of las t year. Income from continuing operations was $47, 080, 000 agains t $40, 238, 000 in the s ame period of las t year. As per non-G AAP , net income attributable to company was $40, 921, 000 or $0. 96 per s hare on total revenue of $136, 585, 000 agains t net income attributable to company was $42, 822, 000 or $1. 08 per s hare on total revenue of $120, 676, 000 in the s ame period of las t year. As per non-G AAP , operating profit was $57, 077, 000 agains t $46,319, 000 in the s ame period of las t year. Figure 7c. Key Developments Source. Capital IQ
    • Page 11 K ey Developments - c ontinued C ompany Headline Notes OAO R B C Information S ys tems O AO R B C Information S ys tems P rovides R evenues O AO R B C Information S ys tems provides revenues outlook for the full year of 2009. R evenue of company is expected (R TS : R B C I) O utlook for the F ull Y ear of 2009 to decreas e 26% on the year to R UB 3. 9 billion in 2009. Unis erve C ommunic ations C orp. Unis erve C ommunications C orp. Announces E xecutive Unis erve C ommunications C orp. announced that W illiam S pratt has res igned as the C E O and a Director of the (TS XV: US S ) C hanges company. Michael S chmidt who has s erved as the company's P res ident has agreed to join the B oard and take on the expanded role as C E O . Neteas e.c om Inc . (Nas daqGS : NTE S ) Neteas e.com Inc. to L aunch G ame.163. com Neteas e.com Inc. is to launch online game cons ulting webs ite game. 163. com. V ia the move, NetE as e. com aims to enhance its s aying right in the indus try, gues s ed indus try watchers , adding that the launch of the s ite will als o bring advertis ing revenues for NetE as e. com. T he new s ite will focus on indus try news and product news and promote online games like W orld of W arcraft (W oW ) and J X 3 Online at important pos itions . However, the company made no comment on the is s ue. W izzard S oftware C orporation W izzard Media Announces E ight New P odcas t W izzard Media announced eight new podcas t companion iP hone(T M) Apps approved and available for s ale in the App (AME X: WZE ) C ompanion Apps S tore. T he newly approved Apps are iP hone companion Apps for popular podcas ts offering convenient acces s to the podcas t, s how extras , bonus content and new s ocial communication features . T his brings the total number of W izzard Apps to 58 with 34 awaiting approval and another 20 to be uploaded for anticipated approval in O ctober. T he newly releas ed Apps include, get R eal is currently the #58 podcas t in the B us ines s s ection of iT unes (R ). Quepas a C orp. (OTC B B : QP S A) Q uepas a Introduces New Dis tributed S ocial Media Q uepas a C orp. announced the introduction of a new ad product revenue platform, Dis tributed S ocial Media (DS M). R evenue P latform Q uepas a's DS M is a new viral ad product that allows Q uepas a to leverage not only its s ocial network, but als o all other s ocial networking s ites . T his new approach will allow advertis ers and brands to target and dis tribute their marketing mes s age acros s all s ocial media s ites through Q uepas a. com. T hes e us er-generated campaigns are extremely viral and create great word-of-mouth marketing for the brands by motivating us ers to s hare content with friends and colleagues acros s all of the popular s ocial media s ites . T he effect for brands is that they are able to have a cons is tent brand mes s age delivered to a broad us er bas e at the lowes t equivalent cos t per impres s ion compared to mos t any other forms of advertis ing. At the s ame time, Q uepas a's DS M addres s es the bigges t problem typically faced by brands when trying to launch s ocial network driven campaigns in terms of achieving meaningful us er engagement while providing real time R O I metrics . As part of this new s trategy, Q uepas a intends to expand its s ales efforts for both the Q u B eyond C ommerc e, Inc . B eyond C ommerce, Inc. Accepts R es ignation of W endy O n O ctober 22, 2009, B eyond C ommerce, Inc. accepted the res ignation, dated (OTC B B : B YOC ) B orow-J ohns on as P res ident O ctober 19, 2009, of W endy B orow-J ohns on as P res ident of B rand Management. Ms . J ohns on will continue with the C ompany as a S pecial Advis or and C ons ultant as it pertains to the C ompany's communications and media needs . S ites earc h C orporation S ites earch C orporation announced delayed annual 10-K O n 10/23/2009, S ites earch C orporation announced that they will be unable to file their next 10-K by the deadline filing required by the S E C . G iant Interac tive G roup, Inc . G iant Interactive P artners with As trum Nival to L icens e G iant Interactive G roup, Inc. announced that it s igned an agreement with As trum Nival, L L C to grant a licens e to (NYS E : G A) ZT O nline in R us s ia As trum Nival to operate ZT Online, G iant's flags hip 2D mas s ively multiplayer online role playing game ('MMO R P G '), in the R us s ian F ederation and other R us s ian s peaking territories . ZT O nline is G iant Interactive's firs t internally- developed 2D free-to-play MMO R P G . S ince its commercial launch, ZT O nline has reached peak concurrent us er (P C U) levels over 2. 1 million and was voted the mos t popular game in C hina in 2006 according to International Data C orporation. As a free-to-play game, revenues are derived from in-game purchas es of virtual items and s ervices . ZT O nline is currently operated in Mainland C hina by the C ompany and in Hong K ong, Macau, T aiwan, Malays ia and S ingapore via a licens e to L ager Network. Additionally, G iant has als o granted a licens e to V inaG ame S oftware S ervice J oint S tock C ompany, or V inaG ame, to operate ZT O nline in V ietnam. C hangyou.c om L imited C hangyou. com L imited R eports Unaudited C ons olidated C hangyou. com L imited reported unaudited cons olidated earnings res ults for the third quarter and nine months ended (Nas daqG S :C YOU) E arnings R es ults for the T hird Q uarter and Nine Months S eptember 30, 2009. F or the quarter, the company's total revenues were $68, 684, 000 agains t $54, 604, 000 a year ago. E nded S eptember 30, 2009; P rovides E arnings G uidance T he increas es were mainly due to increas ed popularity of the company's flags hip game, T LB B . O perating profit was for the F ourth Q uarter of 2009 $42, 288, 000 agains t $32,474, 000 a year ago. Income before income tax expens e was $43,288, 000 agains t $32, 791, 000 a year ago. Net income was $37, 794, 000 agains t $32, 084,000 a year ago. Diluted net income per ADS was $0. 71 agains t $0. 68 a year ago. Non-G AAP operating profit was $45, 842, 000 agains t $33, 725, 000 a year ago. Non-G AAP net income was $41, 348, 000 agains t $33, 335, 000 a year ago. Non-G AAP diluted net income per ADS was $0. 77 agains t $0. 70 a year ago. O perating cas h flow was a net inflow of $46. 2 million. F or the nine months , the company's total revenues were $196, 887, 000 agains t $143, 455, 000 a year ago. O perating profit was $119, 624, 000 agains t $81, 537, 000 a year ago. Income before income tax expens e was $122, 170, 000 agains t $81, 705, 000 a year ago. Net income was $105, 826, 000 agains t $78, 914, 000 a year ago. Diluted net income per T he company es timates total revenues for the fourth quarter of 2009 to be between $69. 0 million and $71. 0 million. Non S ohu.c om Inc . (Nas daqG S : S OHU) S ohu. com Inc. R eports Unaudited C ons olidated E arnings S ohu. com Inc. reported unaudited cons olidated earnings res ults for the third quarter and nine months ended R es ults for the T hird Q uarter and Nine Months E nded S eptember 30, 2009. F or the quarter, the company reported net income attributable to company of $37, 354, 000 or S eptember 30, 2009; P rovides E arnings G uidance for the $0. 88 per s hare on total revenue of $136, 585, 000 agains t net income attributable to company was $40, 261, 000 or F ourth Q uarter of 2009 $1. 02 per s hare on total revenue of $120, 676, 000 in the s ame period of las t year. O perating profit was $52, 953, 000 agains t $43, 758, 000 in the s ame period of las t year. Income before income tax expens e was $54, 102, 000 agains t $45, 230, 000 in the s ame period of las t year. Income from continuing operations was $47, 080, 000 agains t $40, 238, 000 in the s ame period of las t year. As per non-G AAP , net income attributable to company was $40, 921, 000 or $0. 96 per s hare on total revenue of $136, 585, 000 agains t net income attributable to company was $42, 822, 000 or $1. 08 per s hare on total revenue of $120, 676, 000 in the s ame period of las t year. As per non-G AAP , operating profit was $57, 077, 000 agains t $46,319, 000 in the s ame period of las t year. Figure 7d. Key Developments Source. Capital IQ
    • Page 12 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). Fifty-eight of the 89 companies have market caps under US$100 million, with 35 under US$25 million. Online gaming companies dominate the top of the list, led by Tencent Holdings (SEHK:700) with a market cap of approximately US$35 billion. Market C ap (US D m) Tencent Holdings Ltd. 34855. 4 Neteas e. com Inc. 4879. 4 S handa Interactive Entertainment Ltd. 3095. 8 Modern Times G roup Mtg A B 3082. 3 IA C/InterA ctiveCorp. 2524. 9 G ree, Inc. 2523. 3 S ohu. com Inc. 2332. 6 Open Tex t Corp. 2219. 6 Perf ect World Co. , Ltd. 2218. 6 G iant Interactive G roup, Inc. 1730. 0 Changy ou. com Limited 1721. 5 Mix i, Inc. 1270. 0 V alueClick Inc. 1112. 9 Chines e G amer International 1110. 0 K ings of t Co. Ltd. 1058. 1 United Online Inc. 727. 7 NEOWIZ G ames Corporation 715. 5 S hutterf ly , Inc. 369. 4 NetDragon WebS of t, Inc. 349. 9 G ungHo Online Entertainment, Inc. 283. 1 XING A G 281. 1 S K Communications Co. , Ltd. 273. 7 CDC Corp. 262. 8 G igaMedia Ltd. 247. 5 Openw ave S y s tems Inc. 229. 7 G amania Digital Entertainment Co., 228. 8 OA O R B C Inf ormation S y s tems 222. 0 The9 Limited 201. 5 My riad G roup A G 192. 5 DA DA S pA 177. 4 A ctoz S of t Co. , Ltd. 118. 3 Y D Online Corp. 97. 4 G ameOn Co Ltd. 95. 6 Fluid Mus ic Canada, Inc. 91. 7 TheS treet.com, Inc. 87. 5 Tree. Com, Inc. 84. 6 Cy berplex Inc. 77. 9 NeuLion Incorporated 77. 2 Frogs ter Interactive Pictures A G 74. 7 G eoS entric Oy j 65. 8 HanbitS of t, Inc. 65. 3 DigitalTow n, Inc. 54. 7 PNI Digital Media Inc. 53. 5 S park Netw orks , Inc. 52. 7 G ravity Co., Ltd 44. 5 NeXplore Corporation 44. 1 Ngi G roup Inc. 42. 0 DXN Holdings B hd 40. 9 Eolith Co. Ltd. 34. 9 Webz en Inc. 34. 4 A Q Interactive, Inc. 29. 4 Dolphin Digital Media, Inc. 26. 3 Northgate Technologies Limited 25. 8 S ocialw is e, Inc. 25. 7 LookS mart, Ltd. 22. 6 Wiz z ard S of tw are Corporation 21. 2 Y nk K orea Inc. 19. 2 Quepas a Corp. 17. 2 A cceleriz e New Media, Inc. 15. 4 J umbuck Entertainment Limited 14. 5 Lingo Media Corporation 11. 4 Ex tens ions , Inc. 11. 1 UOMO Media, Inc 8. 6 IA S Energy , Inc. 7. 4 MOK O. mobi Limited 7. 3 is eemedia Inc. 6. 6 CornerWorld Corporation 5. 7 B right Things plc 5. 4 Worlds . com Inc. 5. 2 B ey ond Commerce, Inc. 5. 1 S pectrumDNA , Inc. 4. 9 DigitalPos t Interactive, Inc. 4. 6 V OIS , Inc. 4. 1 Magnitude Inf ormation S y s tems Inc. 4. 1 S NA P Interactive, Inc. 3. 8 B roadWebA s ia Inc. 2. 5 B igs tring Corp. 2. 0 Wy nds torm Corporation 1. 8 LiveWorld Inc. 1. 3 B etaw ave Corporation 1. 2 Unis erve Communications Corp. 1. 1 CLICK ER Inc. 0. 9 K A B Dis tribution Inc. 0. 6 A s s ociated Media Holdings Inc. 0. 4 The Parent Company 0. 2 China G atew ay Corporation 0. 0 S NM G lobal Holdings 0. 0 Dibz International, Inc. 0. 0 S ocial Media V entures 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 13 TEV/Revenue (LTM) averages 6.1x: The overall average TEV/Revenue (LTM) multiple for our group is 6.1x (vs. 4.6x last week) (Figure 9). W ith considerable price appreciation among some of the higher value names in the week, we now see five companies (vs. three last week) trading above 25x revenue – Bigstring Corp. (OTCBB:BSGC) at 49.2x, Dolphin Digital Media, Inc. (OTCBB:DPDM) at 46.9x, SpectrumDNA, Inc. (OTCBB:SPXA) at 39.9x, NexPlore Corporation (OTCPK:NXPC) at 28.3x, and Tencent Holdings Ltd. (SEHK:700) at 27.6x. The median of 1.9x is on par with last week’s multiple. Note that we exclude multiples greater than 50x. Twenty-nine companies have multiples under 1.5x. T E V/L T M R evenue (x) 60. 0 49.2 50. 0 46.9 39.9 40. 0 30. 0 28.3 27.6 20. 0 16.416.8 15.4 12.6 12.1 11.5 8.8 9.1 10. 0 A verage, 6.1 7.6 7.6 8.4 6.0 6.7 4.2 4.5 4.6 3.1 3.4 3.6 3.8 3.9 2.3 2.4 2.4 2.5 2.9 3.0 1.0 1.0 1.1 1.4 1.4 1.5 1.5 1.7 1.9 1.9 2.1 0.0 0.0 0.0 0.10.2 0.2 0.3 0.3 0.3 0.4 0.4 0.5 0.6 0.6 0.6 0.6 0.7 0.7 0.7 0.8 0.9 0.9 0.9 0.9 0. 0 NE 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., G ungHo 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. O AO R B C Information S y s tems N orthgate T echnologies L imited DXN Holdings B hd C hangy ou.com L imited G a meO n C o Ltd. T ree.C om, Inc. C DC C orp. B ey ond C ommerce, 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 . S NAP Intera ctive, Inc . United O nline Inc . O pen T ex t C orp. S pec trumDNA, Inc . C hina G atewa y C orporation AQ Intera ctive, Inc . IAC /InterAc tiveC orp. C y berplex Inc . G igaMedia Ltd. S pa rk N etwork s , Inc . V alueC lic k Inc . Y D O nline C orp. NetDra gon WebS oft, Inc . E olith C o. Ltd. is eemedia Inc . S ohu.com Inc . Mix i, Inc . As s ociated Media Holdings Inc . G ree, Inc . T encent Holdings Ltd. XIN G AG F rogs ter Intera ctiv e P ic tures AG L iveWorld Inc . O penwave S y s tems Inc . P erfect World C o. , Ltd. H anbitS oft, Inc . Y nk K orea Inc . S ocia l Media V entures Inc . B igs tring C orp. My riad G roup AG 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 16.3x (vs. 8.1x last week). On a geographic basis, the United States has the most companies (38), trading at an average of 8.7x revenue (vs. 5.0x last week) (Figure 11). Ten of the companies are Canadian (average 4.1x revenue). Average TEV/LTM Revenue - By Exchange Average TEV/LTM Revenue - By Country 18.0 16.3 14.0 12.1 16.0 12.0 14.0 12.5 12.0 12.1 10.0 10.0 8.7 8.0 (x) 9.2 8.0 (x) 8.0 6.7 6.7 6.0 6.4 5.7 6.0 6.0 5.7 5.3 4.8 4.83.8 4.1 4.0 3.0 2.6 2.1 4.0 1.9 1.9 1.8 0.9 0.7 3.0 2.0 0.4 0.3 1.9 1.8 0.9 0.7 2.0 0.0 0.0 0.00.0 0.7 0.3 OTCPK OTCBB GTSM NasdaqGM SEHK HLSE TSE OSE NasdaqGS KOSE CM RTS OM 0.0 0.0 0.0 0.0 TSX XTRA AMEX KLSE BSE AIM NYSE SWX TSXV ASX Grand Total Germany Finland United China Japan Canada Malaysia Hong Kong India Russia United Italy South Taiwan Australia Switzerland Sweden # Companies 18 3 1 2 4 11 5 2 2 4 1 2 1 1 14 6 1 1 5 1 1 1 1 # Companies 1 38 10 3 2 6 2 10 1 1 8 1 1 1 1 1 1 88 Figures 10 & 11. TEV/Revenue Ranking (Exchange, Country) Source. Capital IQ
    • Page 14 TEV/EBITDA (LTM) averages 11.8x: The average multiple for the 35 companies with positive EBITDA (and multiples under 100x) is 11.8x LTM EBITDA (vs. 12.1x last week), led by HanbitSoft, Inc. (KOSE:A047080) 36.6x multiple (Figure 12). Ten companies have EBITDA multiples under 7x. The median multiple is 9.9x (vs. 10.5x last week). T E V/L T M E B IT DA (x) 40. 0 36. 6 35. 0 29. 9 30. 0 25. 7 24. 6 24. 9 25. 0 21. 8 22. 3 20. 0 17. 2 14. 6 14. 9 15. 0 13. 5 A verage, 11.8 11. 8 12. 1 12. 7 11. 0 11. 2 9. 8 9. 9 10. 3 10. 0 8. 0 8. 2 8. 6 8. 7 9. 4 7. 1 6. 0 4. 7 4. 9 5. 0 5. 0 3. 3 2. 3 0. 4 1. 0 1. 1 1. 3 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 O AO R B C Information S y s tems 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. , Ltd. Modern T imes G roup Mtg AB S NAP Interac tive, Inc . U nited O nline Inc . O pen T ex t C orp. T heS treet. c om, Inc . S park Network s , Inc . C yberplex Inc. NetDragon WebS oft, Inc. Y D O nline C orp. S ohu. c om Inc . V alueC lic k Inc . IAC /InterAc tiveC orp. Mix i, Inc . G ree, Inc . XING AG P erfec t World C o. , L td. 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 2.3x. On a geographic basis, the United States has the most companies (38), trading at an average of 10.5x EBITDA (Figure 14). Ten of the companies are Canadian (average 9.0x EBITDA). Average TEV/LTM EBITDA - By Exchange Average TEV/LTM EBITDA - By Country 25.0 22.3 25.0 20.0 19.1 20.0 19.1 16.6 15.0 17.2 16.6 15.0 (x) 13.512.6 15.2 (x) 12.1 11.8 13.5 13.1 10.0 10.7 9.4 12.1 10.5 10.0 10.3 9.0 7.1 5.0 6.0 5.0 4.7 2.3 7.1 1.1 0.4 5.0 5.0 0.0 0.4 OTCBB GTSM NasdaqGM TSE KOSE SEHK NasdaqGS OSE RTS 1.1 OM CM XTRA TSX KLSE AMEX TSXV ASX 0.0 0.0 Germany Japan Canada United Hong Kong China Malaysia Russia Italy South Korea States Taiwan Australia Sweden Switzerland # Companies 4 2 5 6 2 3 1 5 14 1 1 4 1 2 18 2 1 # Companies 3 8 6 2 10 1 38 1 10 1 1 2 1 1 Figures 13 & 14. TEV/EBITDA Ranking (Exchange, Country) Source. Capital IQ
    • Page 15 P/E (LTM) averages 19.0x: The average multiple for the 33 companies with positive earnings (and multiples under 100x) is 19.0x LTM EPS (vs. 18.8x last week), led by Tencent Holdings Ltd. (SEHK:700) with a 71.2x multiple (Figure 15). Thirteen companies have P/E multiples under 10x. The median is 11.9x. P /E L T M (x) 80.0 71.2 70.0 61.2 61.7 60.0 53.5 50.0 39.4 40.0 37.0 37.2 28.9 30.0 A verage, 19.0 19.7 20.0 21.1 20.0 16.7 13.8 14.3 14.4 14.7 11.6 11.8 11.9 9.5 9.8 10.3 10.0 6.7 6.8 7.0 4.1 2.1 2.2 2.3 2.8 3.2 0.0 0.0 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 iant Interactive G roup, Inc. G ameO n C o Ltd. Modern T imes G roup Mtg AB G ravity C o., Ltd 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. Y D O nline C orp. IAC /InterActiveC orp. S ohu.com Inc. NetDragon W ebS oft, Inc. S park Network s , Inc. Worlds .com Inc. G ree, Inc. Mix i, Inc. T encent H oldings Ltd. XING AG W ebz en Inc. P erfect World C o., Ltd. 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 13.3x. On a geographic basis, the United States has the most companies (38), trading at an average of 13.3x earnings (Figure 17). Ten of the companies are Canadian (average 14.5x EPS). Average P/E - By Country Average P/E - By Exchange 50.0 46.5 70.0 45.0 61.2 40.0 60.0 35.0 50.0 30.0 28.9 41.6 23.0 22.0 (x) 40.0 35.5 25.0 (x) 29.5 28.9 30.0 20.0 14.7 14.5 19.0 15.0 13.3 12.7 20.0 14.7 14.4 13.3 10.5 10.0 6.8 7.0 6.8 4.1 10.0 4.1 5.0 2.1 0.0 0.0 0.0 0.0 0.0 Germany Japan Canada China United Malaysia OTCBB GTSM NasdaqGM Italy South Korea OSE TSE SEHK KOSE NasdaqGS OM States Taiwan Australia XTRA AMEX TSX KLSE NYSE Sweden Switzerland ASX # Companies 1 5 3 2 2 6 1 2 18 14 4 1 2 1 5 # Companies 6 2 3 10 1 10 38 8 1 2 1 1 Figures 16 & 17. P/E Ranking (Exchange, Country) Source. Capital IQ
    • Page 16 UPCOMING EVENTS E arnings C alendar C ompany Date & Time Quarter C onf C all Details IAC/InterActiveCorp. (NasdaqGS:IACI) Tuesday, October 27, 2009, 11:00 a.m. EDT Q 3 2009 www. ia c. com/inves tors ValueClick Inc. (NasdaqGS:VCLK) Tuesday, October 27, 2009, 4:30 p.m. EDT Q 3 2009 http: //www. va lueclick. com/ Open Text Corp. (NasdaqGS:OTEX) Tuesday, October 27, 2009, 5:00 p.m. EDT Q 1 2010 1-800-814-4861 Shutterfly, Inc. (NasdaqGS:SFLY) Wednesday, October 28, 2009, 5:00 p.m. EDT Q 3 2009 719-325-4880 Openwave Systems Inc. (NasdaqGS:OPWV) Thursday, October 29, 2009, 5:00 p.m. EDT Q 1 2010 877-941-8416 Tree.Com, Inc. (NasdaqGM:TREE) Friday, October 30, 2009, 11:00 a.m. EDT Q 3 2009 1-888-428-9470 LookSmart, Ltd. (NasdaqGM:LOOK) Monday, November 2, 2009, 5:00 p.m. EST Q 3 2009 1-877-941-8418 United Online Inc. (NasdaqGS:UNTD) Wednesday, November 4, 2009, 5:30 p.m. EST Q 3 2009 877-718-5098 Figure 18. Earnings Calendar Source. Company reports
    • Page 17 C omparable C ompany Analys is > Web 2.0 Pric e P erformanc e C ompany Name C urrenc y Tic ker 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 L Z OT C B B 15.4 0.55 -8.3% -15.4% -3.5% 12.2% 10.0% -20.3% A ctoz S oft C o. , L td. KR W A052790 K OS E 118.3 16, 300 4. 5% -13.8% -36.2% 18.1% 90.2% -54.7% A Q Interactive, Inc. JPY 3838 TS E 29.4 48, 400 -1.2% -6.4% -18.0% 4. 1% 2.1% -41.7% A s s ociated Media H oldings Inc. US D AS MH OT C P K 0.4 0.01 -35.7% -35.7% -55.0% 500.0% 12.5% -55.0% B igs tring C orp. US D BSGC OT C B B 2.0 0.03 -12.8% 70.0% 15.3% 150.0% 70.0% -40.4% B eta wave C orpora tion US D B W AV OT C B B 1.2 0.04 -21.4% -59.9% -63.5% -63.9% -65. 1% -86.2% B eyond C ommerce, Inc. US D B Y OC OT C B B 5.1 0.10 -4.8% -37.5% -67.7% -92.6% -94. 7% -95.3% B right T hings plc GB P AIM:B G T A IM 5.4 0.01 -9.1% -9.1% -28.6% -33.3% -13. 2% -49.4% B roadW ebA s ia Inc. US D BWBA OT C P K 2.5 0.03 -87.0% -87.0% -87.0% -93.3% -95. 0% -99.0% C DC C orp. US D C H IN.A Nas da qG S 262.8 2.48 -2.0% -4.6% -18.4% 110.2% 103. 3% -36.7% C ha ngyou.com Limited US D C Y OU Nas da qG S 1, 721.5 31.30 -1.3% -15.9% -19.1% 0. 8% NM -35.3% C hina G a tewa y C orporation US D CGWY OT C P K 0.0 0.00 -86.7% -86.7% -86.7% 0. 0% -80. 0% -93.3% C hines e G a mer International TWD G T S M:3083 GTS M 1, 110.0 428.00 -9.9% -7.8% -8.2% 103.8% 433. 7% -17.5% C LIC K E R Inc. US D CLK Z OT C B B 0.9 0.01 22.2% 18.3% 57.1% 134.0% -96. 9% -97.3% C ornerW orld C orpora tion US D CW R L OT C B B 5.7 0.06 0. 0% 0.0% 20.0% -57.1% -70. 0% -87.2% C yberplex Inc. C AD T S X: C X TS X 77.9 1.30 1. 6% 0.0% -23.5% 4. 0% 188. 9% -34.7% DADA S pA E UR C M:DA CM 177.4 7.47 -2.9% 6.9% 25.8% 14.9% 2.4% -8.8% DXN Holdings B hd MY R DXN K LS E 40.9 0.63 -3.8% 2.5% 56.3% 95.3% 78.6% -9.4% Dibz Interna tional, Inc. US D DIB Z OT C 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 OT C B B 4.6 0.06 0. 0% 9.1% 20.0% 252.9% 71.4% -39.4% DigitalT own, Inc. US D DG T W OT C B B 54.7 2.00 -20.0% 0.0% 0.0% 0. 0% 0.0% -42.9% Dolphin Digital Media, Inc. US D DP DM OT C B B 26.3 0.49 28.9% 6.5% 63.3% -10.9% -48. 4% -51.0% E olith C o. L td. KR W A041060 K OS E 34.9 575.00 -5.0% -23.3% -26.3% -32.4% 6.5% -50.4% E xtens ions , Inc. US D E XT I OT C P K 11.1 0.25 56.3% 0.0% 212.5% 66.7% 150. 0% -75.2% F luid Mus ic C anada, Inc. C AD T S X: F MN TS X 91.7 1.90 37.7% 31.0% 100.0% 363.4% 375. 0% -11.6% F rogs ter Intera ctive P ictures AG E UR FR G XT R A 74.7 19.90 -2.9% 14.4% 54.5% 115.1% 373. 8% -7.4% G amania Digita l E ntertainment C o., L td. TWD 6180 GTS M 228.8 48.85 -2.3% -1.3% -21.5% 51.2% 244. 0% -29.0% G ameO n C o L td. JPY 3812 TS E 95.6 88, 400 -1.9% -9.8% -16.5% -8.7% 33.9% -41.8% G eoS entric Oyj E UR G E O1V H LS E 65.8 0.05 0. 0% 0.0% 25.0% 25.0% 66.7% -16.7% G ia nt Interactive G roup, Inc. US D GA NY S E 1, 730.0 7.64 0. 7% -3.4% -4.3% -11.6% 9.3% -20.2% G igaMedia L td. US D G IG M Nas da qG S 247.5 4.54 -5.6% -12.4% -7.5% -33.1% -24. 2% -41.3% G ra vity C o., Ltd US D GR VY Nas da qG M 44.5 1.60 -2.4% -14.9% 4.6% 63.3% 77.8% -39.2% G ree, Inc. JPY T S E :3632 TS E 2, 523.3 5, 040 4. 1% 1.0% 46.9% 76.2% NM -5.4% G ungH o Online E ntertainment, Inc. JPY 3765 OS E 283.1 221, 000 1. 6% -9.1% 1.5% 59.0% 146. 9% -21.0% H anbitS oft, Inc. KR W A047080 K OS E 65.3 3, 560 -12.9% -24.3% -19.5% -19.1% 22.3% -46.4% IAC /InterA ctiveC orp. US D IA C I Nas da qG S 2, 524.9 19.07 -0.6% -6.7% 6.5% 14.5% 13.8% -10.4% IAS E nergy, Inc. US D IA S A. E OT C B B 7.4 0.11 5. 0% -34.4% -4.5% -58.0% -4.5% -62.5% is eemedia Inc. C AD IE E T S XV 6.6 0.14 -6.7% 16.7% 75.0% 40.0% 154. 5% -12.5% J umbuck E ntertainment Limited AU D AS X: J MB AS X 14.5 0.34 -10.5% -15.0% -8.1% -26.9% -20. 0% -41.9% K AB Dis tribution Inc. C AD T S X: K AB TS X 0.6 0.01 -50.0% -99.2% -99.2% -98.6% -99. 4% -99.2% K ings oft C o. L td. HK D 3888 S E HK 1, 058.1 7.51 -0.1% -3.3% 4.7% 101.9% 341. 8% -20.7% L ingo Media C orpora tion C AD T S XV :LM T S XV 11.4 1.00 1. 0% -9.1% -9.1% 11.1% -22. 5% -31.5% L iveW orld Inc. US D LV W D OT C P K 1.3 0.04 0. 0% -48.8% 10.8% -59.0% -54. 4% -83.6% L ookS mart, L td. US D LO OK Nas da qG M 22.6 1.32 10.2% 15.0% 5.8% 0. 2% -23. 6% -28.5% Ma gnitude Information S ys tems Inc. US D MAG Y OT C B B 4.1 0.01 -25.0% -10.0% 20.0% -40.0% -35. 7% -70.0% Mixi, Inc. JPY 2121 TS E 1, 270.0 737,000.00 15.2% 17.9% 11.2% 57.1% 28.0% -3.4% Modern T imes G roup Mtg AB SEK MT G B OM 3, 082.3 325.70 -1.0% 7.1% 26.0% 54.0% 97.4% -4.2% MO K O .mobi L imited AU D MK B AS X 7.3 0.08 0. 0% 3.9% 12.9% 6. 8% 64.6% -21.0% Myriad G roup AG C HF MY R N S WX 192.5 4.49 -0.2% 1.8% 5.9% -2.4% -24. 9% -40.1% NE O W IZ G ames C orporation KR W A095660 K OS E 715.5 40,500.00 9. 3% -4.9% 29.0% 39.2% 530. 4% -9.8% NetDra gon W ebS oft, Inc. HK D 777 S E HK 349.9 5.13 3. 6% -9.2% -15.3% 11.8% 90.0% -28.3% Netea s e. com Inc. US D NT E S Nas da qG S 4, 879.4 37.70 -4.2% -15.0% -9.6% 25.3% 67.6% -22.3% NeuLion Incorpora ted C AD T S X: NL N TS X 77.2 0.76 -6.2% -24.0% -6.2% 38.2% 16.9% -41.5% NeXplore C orpora tion US D NXP C OT C P K 44.1 0.79 12.9% 43.6% 12.9% 58.0% -12. 2% -45.5% Ngi G roup Inc. JPY 2497 TS E 42.0 30,300.00 7. 4% 17.5% -3.3% -20.3% -57. 3% -65.1% Northgate T echnologies Limited INR 590057 BSE 25.8 35.55 -2.1% -17.8% -11.7% -10.7% -55. 2% -59.3% O pen T ext C orp. US D OT E X Nas da qG S 2, 219.6 39.53 -3.4% 4.5% 7.0% 23.1% 52.3% -4.6% O penwa ve S ys tems Inc. US D OP W V Nas da qG S 229.7 2.75 8. 7% 7.8% -6.1% 120.0% 266. 7% -12.1% P erfect W orld C o., Ltd. US D PWRD Nas da qG S 2, 218.6 45.11 0. 3% 2.4% 31.5% 146.6% 142. 1% -10.7% P NI Digital Media Inc. C AD T S XV :P N T S XV 53.5 1.70 -2.9% -15.8% 14.1% 11.8% -17. 1% -26.7% Q uepa s a C orp. US D QP S A OT C B B 17.2 1.35 -3.6% -22.0% 35.0% 64.6% -38. 1% -42.6% O AO R B C Information S ys tems US D R BCI R TS 222.0 1.60 6. 7% 37.9% 52.4% 62.4% 6.7% -5.9% S ha nda Interactive E nterta inment L td. US D S NDA Nas da qG S 3, 095.8 46.03 -6.8% -7.9% -7.4% -5.3% 66.5% -29.2% S hutterfly, Inc. US D S F LY Nas da qG S 369.4 14.51 -8.9% -12.3% -2.0% 36.6% 90.2% -20.0% S K C ommunications C o. , L td. KR W A066270 K OS E 273.7 7,800.00 -5.0% -11.3% -15.9% -17.0% 53.5% -39.3% S NA P Intera ctive, Inc. US D S TVI OT C B B 3.8 0.35 -30.0% -12.5% -22.2% -53.3% 75.0% -67.6% S NM G loba l H oldings US D S NMN OT C P K 0.0 0.00 -11.8% -48.3% -62.5% -68.8% -98. 5% -99.3% S ocial Media V entures Inc. US D S MV I OT C P K 0.0 0.02 -52.9% -82.6% -93.1% 65.0% -99. 5% -99.7% S ocialwis e, Inc. US D S CLW OT C B B 25.7 0.58 -4.9% -4.9% -24.0% 28.9% -70. 6% -74.1% S ohu.com Inc. US D S O HU Nas da qG S 2, 332.6 60.85 -13.1% -9.0% -1.9% 21.6% 10.8% -15.8% S pa rk Networks , Inc. US D LO V A ME X 52.7 2.56 4. 1% 10.8% 7.6% 15.3% -17. 4% -21.2% S pectrumDNA, Inc. US D S P XA OT C B B 4.9 0.10 -28.6% -54.5% -28.6% -47.4% -60. 0% -77.8% T encent H oldings Ltd. HK D 700 S E HK 34,855. 4 149 8. 4% 15.1% 43.7% 125.5% 237. 6% -2.2% T he P a rent C ompany US D K IDS . Q OT C P K 0.2 0.01 0. 0% -30.0% -65.0% -41.7% -99. 2% -99.3% T he9 L imited US D NC T Y Nas da qG S 201.5 8.03 -9.7% 3.5% -5.4% -14.4% -43. 5% -51.7% T heS treet.com, Inc. US D TS CM Nas da qG M 87.5 2.86 -4.7% -0.3% 36.8% 18.2% -27. 4% -31.1% T ree.C om, Inc. US D TR E E Nas da qG M 84.6 7.83 -0.9% 5.2% -25.5% 32.7% 188. 9% -40.1% U nis erve C ommunica tions C orp. C AD T S XV :US S T S XV 1.1 0.05 25.0% 25.0% -50.0% 25.0% -72. 2% -50.0% U nited O nline Inc. US D UNT D Nas da qG S 727.7 8.68 -3.9% 8.5% -3.3% 66.6% 17.3% -8.2% U OMO Media, Inc US D UO MO OT C B B 8.6 0.10 -9.1% -25.9% -6.5% 25.0% -47. 4% -90.6% V alueC lick Inc. US D V CLK Nas da qG S 1, 112.9 12.77 -7.1% 0.3% 10.0% 24.5% 72.6% -8.4% V OIS , Inc. US D V O IS OT C B B 4.1 0.01 0. 0% 11.1% 0.0% 66.7% -33. 3% -78.3% W ebzen Inc. US D W ZE N Nas da qG M 34.4 2.90 9. 5% -1.1% -19.2% 4. 4% 176. 4% -38.0% W izzard S oftwa re C orporation US D W ZE A ME X 21.2 0.42 -6.7% -10.6% -16.0% -23.6% -58. 0% -75.7% W orlds .com Inc. US D W DDD OT C B B 5.2 0.10 0. 0% 0.0% -9.1% -41.2% -44. 4% -58.3% W ynds torm C orpora tion US D W Y ND OT C P K 1.8 0.10 0. 0% 0.0% 0.0% 11.1% -50. 0% -80.4% XING A G E UR O1B C XT R A 281.1 36.41 -1.9% 8.7% 21.5% 26.5% 38.7% -4.1% Y D Online C orp. KR W A052770 K OS E 97.4 7,750.00 -4.2% -13.4% -3.0% -11.1% 29.2% -37.5% Y nk K orea Inc. KR W A023770 K OS E 19.2 4,300.00 6. 6% 12.1% -24.8% -19.3% -26. 7% -50.6% H igh 56.3% 70.0% 212.5% 500.0% 530. 4% -2.2% L ow -87.0% -99.2% -99.2% -98.6% -99. 5% -99.7% Average 810.8 -4.0% -8.0% -0.8% 28.1% 40.2% -43.3% Media n -2.0% -4.8% -3.3% 14.5% 9.3% -40.1% Figure 19. Price Performance Source. Capital IQ
    • Page 18 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 Ticker 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 Marketing U nited S ta tes OTCB B AC LZ 15.4 4.6x - - - - - - Actoz S oft C o., Ltd. G aming S outh K orea K OS E A052790 118.3 0.8x - 3. 3x - 16.7x - 1.8x AQ Intera ctive, Inc. G aming J apan TS E 3838 29.4 0.1x 0.1x - - - 8.7x 0.5x As s ocia ted Media Holdings Inc. Mobile U nited S ta tes OTCP K AS MH 0.4 12.6x - - - - - - B igs tring C orp. Ins ta nt Mes s aging U nited S ta tes OTCB B BSGC 2.0 49.2x - - - - - - B etawave C orpora tion Media U nited S ta tes OTCB B B W AV 1.2 - - - - - - 0.2x B eyond C ommerce, Inc. S ocial Networking U nited S ta tes OTCB B B YOC 5.1 0.9x - - - - - - B right T hings plc S ocial Networking U nited K ingdom AIM AIM:B G T 5.4 - - - - - - - B roadW ebAs ia Inc. S ocial Networking U nited S ta tes OTCP K BWBA 2.5 - - - - - - - C DC C orp. G aming H ong K ong N as da qG S C HIN.A 262.8 0.7x 0.8x 10.3x 7.2x - - - C hangyou.com Limited G aming C hina N as da qG S C Y OU 1,721.5 6.0x 4.7x 9. 8x 8.0x 11.8x 10.7x 11.7x C hina G atewa y C orpora tion Mobile U nited S ta tes OTCP K CGW Y 0.0 0.0x - - - - - - C hines e G amer Interna tional G aming T a iwa n GTS M G T S M:3083 1,110.0 16.8x 15.8x 29.9x 25.8x 39.4x 23.6x 19.0x C L IC K E R Inc. Direct Marketing U nited S ta tes OTCB B C LK Z 0.9 0.4x - - - - - - C ornerW orld C orporation C ontent U nited S ta tes OTCB B CW R L 5.7 2.4x - - - - - - C yberplex Inc. A dvertis ing C ana da TS X T S X: C X 77.9 0.6x 0.5x 6. 0x 4.7x 7.0x 7.9x 3.1x DA DA S pA S ocial Networking Italy CM C M:DA 177.4 0.9x 0.9x 7. 1x 6.1x - 16.8x - DXN Holdings B hd S ocial Networking Mala ys ia K LS E DXN 40.9 0.7x - 5. 0x - 6.8x - 0.9x Dibz Interna tiona l, Inc. S NS Apps U nited S ta tes OTCP K DIB Z 0.0 - - - - - - - DigitalP os t Interactive, Inc. C ontent U nited S ta tes OTCB B DG L P 4.6 6.7x - - - - - - DigitalT own, Inc. S ocial Networking U nited S ta tes OTCB B DG T W 54.7 - - - - - - - Dolphin Digital Media, Inc. S ocial Networking U nited S ta tes OTCB B DP DM 26.3 46.9x 1.7x - - - 2.0x - E olith C o. L td. G aming S outh K orea K OS E A041060 34.9 2.4x - - - - - 3.2x E xtens ions , Inc. C ontent U nited S ta tes OTCP K E XT I 11.1 - - - - - - - F luid Mus ic C a nada, Inc. Media U nited S ta tes TS X T S X:F MN 91.7 16.4x 15.7x - - - - 8.6x F rogs ter Interactive P ictures A G G aming G erma ny XT R A FR G 74.7 7.6x - - - - - 9.2x G amania Digital E ntertainment C o., Ltd. G aming T a iwa n GTS M 6180 228.8 1.5x - 8. 2x - 19.7x - 3.0x G ameO n C o Ltd. G aming J apan TS E 3812 95.6 0.3x - 1. 0x - 9.5x - 1.1x G eoS entric Oyj Mobile F inland H LS E G E O1V 65.8 12.1x - - - - - 54.3x G iant Interactive G roup, Inc. G aming C hina NY S E GA 1,730.0 - - - - 2.1x 15.9x 0.3x G igaMedia Ltd. G aming T a iwa n N as da qG S G IG M 247.5 0.9x 0.9x - 4.4x 9.8x 9.1x 2.1x G ravity C o., Ltd G aming S outh K orea N as da qG M GR VY 44.5 - - - - 0.0x - 0.0x G ree, Inc. S ocial Networking J apan TS E T S E : 3632 2,523.3 15.4x 7.6x 25.7x 13.6x 53.5x 27.5x 24.7x G ungH o O nline E nterta inment, Inc. Media J apan OS E 3765 283.1 2.1x - 9. 4x - 61.2x - 21.1x Ha nbitS oft, Inc. G aming S outh K orea K OS E A047080 65.3 0.9x - 36.6x - 11.6x - 1.8x IAC /InterActiveC orp. Media U nited S ta tes N as da qG S IAC I 2,524.9 0.6x 0.6x 14.9x 4.5x 11.9x 33.0x 1.2x IAS E nergy, Inc. V ideo C ana da OTCB B IAS A.E 7.4 - - - - - - - is eemedia Inc. C ontent C ana da T S XV IE E 6.6 3.6x - - - - - 5.4x J umbuck E ntertainment Limited S ocial Networking Aus tra lia AS X AS X:J MB 14.5 0.5x 0.5x 1. 1x 1.2x 4.1x 3.0x 1.3x K A B Dis tribution Inc. C ontent C ana da TS X T S X:K AB 0.6 - - - - - - 0.0x K ings oft C o. Ltd. G aming C hina S E HK 3888 1,058.1 7.6x 6.2x 17.2x 11.8x 21.1x 15.8x 5.9x Lingo Media C orpora tion L earning C ana da T S XV T S XV : LM 11.4 8.8x - - - - - 20.5x LiveW orld Inc. S ocial Networking U nited S ta tes OTCP K LV W D 1.3 0.0x - - - - - 0.5x LookS ma rt, L td. Direct Marketing U nited S ta tes N as da qG M L OOK 22.6 - - - - - - 0.9x Magnitude Information S ys tems Inc. S ocial Networking U nited S ta tes OTCB B MA G Y 4.1 - - - - - - - Mixi, Inc. S ocial Networking J apan TS E 2121 1,270.0 8.4x 7.2x 24.9x 23.0x 61.7x 53.8x 8.4x Modern T imes G roup Mtg AB Media S weden OM MT G B 3,082.3 1.9x 1.8x 12.1x 13.6x 14.7x 16.4x - MOK O .mobi Limited S ocial Networking Aus tra lia AS X MK B 7.3 9.1x - - - - - 7.5x Myriad G roup AG Mobile S witzerla nd SWX MY R N 192.5 3.0x - - - - - - NE OW IZ G ames C orporation G aming S outh K orea K OS E A095660 715.5 3.4x 3.0x 12.7x 9.8x 37.2x 14.4x 18.8x NetDra gon W ebS oft, Inc. G aming C hina S E HK 777 349.9 2.3x 1.6x 8. 0x 4.4x 14.3x 11.4x 1.9x Netea s e.com Inc. G aming C hina N as da qG S NT E S 4,879.4 - - - - 2.8x 15.1x 0.8x NeuLion Incorporated V ideo C ana da TS X T S X:NL N 77.2 3.1x - - - - - 5.8x NeXplore C orporation C ontent U nited S ta tes OTCP K NXP C 44.1 28.3x - - - - - - Ngi G roup Inc. Media J apan TS E 2497 42.0 - - - - - - 0.8x Northgate T echnologies Limited Direct Marketing India BS E 590057 25.8 0.3x - - - - 1.4x - O pen T ext C orp. C ollabora tion C ana da N as da qG S OT E X 2,219.6 2.9x 2.6x 11.0x 9.1x 37.0x 14.0x - O penwave S ys tems Inc. Mobile U nited S ta tes N as da qG S OP W V 229.7 0.6x 0.6x 24.6x 5.5x - 34.4x 3.3x P erfect W orld C o., Ltd. G aming C hina N as da qG S PWRD 2,218.6 0.7x 3.5x 1. 3x 6.6x 3.2x 14.3x 1.5x P N I Digital Media Inc. Digita l Ima ging C ana da T S XV T S XV :P N 53.5 2.5x 2.0x 22.3x 6.7x - 13.6x 18.7x Q uepa s a C orp. S ocial Networking U nited S ta tes OTCB B QP S A 17.2 - - - - - - - O AO R B C Information S ys tems Media R us s ia R TS R BCI 222.0 0.0x 1.0x 0. 4x 5.7x - 6.5x - S handa Interactive E nterta inment Ltd. G aming C hina N as da qG S S NDA 3,095.8 - - - - 2.2x 12.7x 0.9x S hutterfly, Inc. Digita l Ima ging U nited S ta tes N as da qG S S FLY 369.4 1.4x 1.4x 11.2x 7.2x - - 2.2x S K C ommunications C o., Ltd. S earch S outh K orea K OS E A066270 273.7 1.4x - 21.8x - - - - S N AP Interactive, Inc. Dating U nited S ta tes OTCB B S TVI 3.8 0.6x - 2. 3x - 6.7x - 2.1x S N M G lobal Holdings Media U nited S ta tes OTCP K S NMN 0.0 1.1x - - - - - - S ocial Media V entures Inc. S ocial Networking U nited S ta tes OTCP K S MV I 0.0 4.5x - - - - - - S ocialwis e, Inc. S ocial Networking U nited S ta tes OTCB B S CLW 25.7 - - - - - - - S ohu.com Inc. G aming C hina N as da qG S S O HU 2,332.6 3.8x 3.2x 8. 7x 7.0x 13.8x 16.0x 4.6x S park N etworks , Inc. S ocial Networking U nited S ta tes AME X L OV 52.7 1.0x - 4. 7x - 14.4x - 53.9x S pectrumDN A, Inc. Media U nited S ta tes OTCB B S P XA 4.9 39.9x - - - - - 48.5x T encent Holdings Ltd. P orta l C hina S E HK 700 34,855.4 27.6x 21.0x - - 71.2x 58.8x 31.7x T he P a rent C ompany Media U nited S ta tes OTCP K K IDS .Q 0.2 0.2x 0.2x - 12.8x - - - T he9 L imited G aming C hina N as da qG S NC T Y 201.5 - - - - 2.3x - 0.1x T heS treet.com, Inc. Media U nited S ta tes N as da qG M TS CM 87.5 0.3x 0.4x 11.8x - - - 1.1x T ree.C om, Inc. P orta l U nited S ta tes N as da qG M TREE 84.6 0.4x 0.4x - 8.1x - 50.4x 1.1x Unis erve C ommunications C orp. S ocial Networking C ana da T S XV T S XV :US S 1.1 0.2x - - - - - - United Online Inc. Media U nited S ta tes N as da qG S U NT D 727.7 1.0x 1.0x 4. 9x 4.2x - 6.6x - UO MO Media, Inc Media C ana da OTCB B UO MO 8.6 11.5x - - - - - - V a lueC lick Inc. Media U nited S ta tes N as da qG S V CLK 1,112.9 1.7x 1.8x 9. 9x 7.0x - 20.0x 7.2x V O IS , Inc. S ocial Networking U nited S ta tes OTCB B V OIS 4.1 - - - - - - 26.3x W ebzen Inc. G aming S outh K orea N as da qG M W ZE N 34.4 - - - - 0.0x - 0.0x W izzard S oftware C orporation P odca s ting U nited S ta tes AME X W ZE 21.2 4.2x - - - - - - W orlds .com Inc. C ontent U nited S ta tes OTCB B W DDD 5.2 - - - - 20.0x - - W ynds torm C orporation C ontent U nited S ta tes OTCP K W Y ND 1.8 - - - - - - - XIN G AG S ocial Networking G erma ny XT R A O1B C 281.1 3.9x 2.9x 13.5x 8.1x 28.9x 16.5x 9.0x Y D Online C orp. G aming S outh K orea K OS E A052770 97.4 1.9x 1.4x 8. 6x 4.7x 10.3x - 3.2x Y nk K orea Inc. G aming S outh K orea K OS E A023770 19.2 1.5x - 14.6x - - - 0.9x High 34,855.4 49.2x 21.0x 36.6x 25.8x 71.2x 58.8x 54.3x Low 0.0 0.0x 0.1x 0. 4x 1.2x 0.0x 1.4x 0.0x Average 810.8 6.1x 3.5x 11.8x 8.5x 19.0x 18.3x 8.7x Median 44.5 1.9x 1.6x 9. 9x 7.0x 11.9x 14.7x 3.0x Figure 20. Valuation Comparison Source. Capital IQ
    • Page 19 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 a na da 10 U nited S ta tes 5, 811. 3 S weden 2,974. 2 United S tates 3,887. 3 S weden 304. 6 A us tralia 42. 8% C hina 10 J a pan 3, 871. 5 J apan 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 aiwan 577. 9 C a na da 1,015. 0 C a na da 200. 0 J apan 24. 2% J a pa n 6 C anada 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 a iwa n 3 T a iwa n 1, 733. 6 C anada 248. 8 J a pa n 634. 4 S outh K orea 121. 9 Mala ys ia 14. 4% Aus tralia 2 S outh K orea 1, 527. 4 S outh K orea 190. 9 T a iwa n 385. 8 T a iwa n 59. 8 Italy 13. 1% G erma ny 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 witzerla nd 1 Hong K ong 294. 6 R us s ia 160. 9 Ita ly 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 inla nd 1 R us s ia 160. 9 U nited S ta tes 152. 9 India 82. 8 G erma ny 12. 5 S witzerla nd 1. 9% Ita ly 1 S witzerla nd 92. 0 S witzerla nd 92. 0 Ma lays ia 77. 1 Ma lays ia 11. 1 C anada -8. 5% United K ingdom 1 F inland 65. 9 F inland 65. 9 G erma ny 68. 7 Aus tralia 4. 5 G ermany -9. 1% India 1 Malays ia 39. 8 Malays ia 39. 8 S witzerla nd 40. 0 S witzerla nd 0. 8 U nited S ta tes -21. 9% S weden 1 India 31. 0 India 31. 0 Aus tralia 17. 8 Norwa y -1. 1 India -50. 0% R us s ia 1 Aus tralia 22. 1 Aus tralia 11. 0 F inla nd 5. 5 United K ingdom -2. 7 Norway -50. 6% Ma lays ia 1 U nited K ingdom 6. 0 U nited K ingdom 6. 0 Norwa y 2. 3 F inla nd -17. 5 U nited K ingdom NA Norwa y 1 Norway 0. 1 Norway 0. 1 United K ingdom 0. 0 India -41. 4 F inland NA 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 daqG S 1, 796. 0 NY S E 62. 5% Na s daqG S 14 Nas da qG 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 TSE 713. 8 RTS 156. 2 K OS E 103. 2 TSE 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 Nas da qG M 279. 7 R TS 160. 9 GTS M 101. 1 RTS 20. 4 CM 13. 1% AS X 2 TS X 243. 6 XT R A 158. 5 BSE 82. 8 Na s daqG 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 R TS 160. 9 TSX 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 S WX 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% BS E 1 AME X 68. 5 AME X 34. 2 AME X 27. 9 OT C NO -1. 1 A ME X -31. 8% NY S E 1 HLS E 65. 9 BS E 31. 0 OT C P K 16. 5 AIM -2. 7 TSX -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 OTCB 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 OTCP K -41. 5% OM 1 BS E 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 OT C NO 2. 3 BSE -41. 4 A IM NA OT C NO 1 OT C NO 0. 1 OT C NO 0. 1 AIM 0. 0 OT C B B -62. 4 HLS E NA 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 20 Financ ing - L as t Three Months (US $ m) F in. Amount (Million) Type of financ ing Month C ompany Name C ountry Angel/S eed Debt financ ing S eries A S eries B S eries C S eries D S eries E Grand Total 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 ichR elevance 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 ocket 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 yndica US A 0. 4 0.4 DailyB ooth US A 0. 0 0.0 Aug-09 Total 25.8 11.5 77.6 43.6 63.2 221.6 S ep-09 Twitter US A 100.0 100. 0 E ns equenc e US A 20. 0 20. 0 L ivebookings UK 16.0 16. 0 Mzinga US A 10. 0 10. 0 InXpo US A 9.0 9.0 J obvite US A 8.3 8.3 R iot G ames US A 8.0 8.0 NextB io US A 8.0 8.0 Imeem US A 6.0 6.0 Vuc lip US A 6.0 6.0 YuMe US A 5.0 5.0 B ooyah US A 5.0 5.0 NeoE dge US A 4.0 4.0 Allianc e Health Networks US A 3.3 3.3 Unis fair US A 3. 1 3.1 C onduit L abs US A 3.0 3.0 Mocapay US A 3.0 3.0 Fwix US A 2.8 2.8 Vantrix C anada 2.6 2.6 Mas hL ogic US A 2.5 2.5 G reys tripe US A 2.0 2.0 L oomia US A 1. 5 1.5 FourS quare US A 1.4 1.4 E duFire US A 1.3 1.3 Fluther US A 0. 6 0.6 Trans Gaming Inc. C anada 0. 5 0.5 OnL ive US A S ep-09 Total 0.6 2.0 16.9 52.3 27.9 23.1 110.0 232.8 Oct-09 DailyMotion F ra nce 25.3 25. 3 P opC ap G ames US A 22.5 22. 5 E ngine Yard US A 19.0 19. 0 HubS pot US A 16.0 16. 0 J ive S oftware US A 12.0 12. 0 S pigit US A 10.0 10. 0 Ooyala US A 10.0 10. 0 R eality Mobile US A 6.5 6.5 W atercooler US A 5.5 5.5 Vdopia US A 4.7 4.7 S ometrics US A 4.0 4.0 Amie S treet US A 3.9 3.9 ViVu US A 3.0 3.0 Fizzbac k UK 2.6 2.6 Tec hnorati US A 2. 0 2.0 DataS ync US A 1.2 1.2 DailyB ooth US A 1. 0 1.0 L inkedex UK 1. 0 1.0 C hango C ana da 0.7 0.7 L is tia US A 0. 4 0.4 Oct-09 Total 2.4 38.6 48.0 60.3 2.0 151.2 G rand Total 28.8 2.0 67.0 177.8 131.7 88.3 110.0 605.6 Figure 23. Financing, Last Three Months Source. Company reports
    • Page 21 C ompany Des c riptions - C urrent Month C apital Market Ac tivity C ompany HQ Webs ite Des c ription Amie S treet United S tates www. amies treet. com Amie S treet, Inc. , a W eb bas ed s ocial mus ic s tore, enables members to dis cover, downloa d, and s hare mus ic. T he company was founded in 2006 and is bas ed in L ong Is land C ity, New Y ork. Aviary United S tates www. aviary. com Aviary is a collabora tive creative s uite for artis ts of all genres . Available both on and offline, via A dobe’s F lex and Air technologies res pectively, Avia ry ena bles artis ts to create on the fly with an inventory of tools for every medium. F rom image editing to typography to mus ic to 3D to video, artis ts can crea te and collaborate us ing the compa ny's free and light s oftwa re. C hango C anada www. chango. com C hango Inc. provides online advertis ing s olution. T he company provides keyword ta rgeted P P C campaigns a nd S earch E engine Marketing (S E M) campaigns . C hango Inc. was founded in 2008 and is bas ed in T oronto, C anada. Daily B ooth United S tates www. da ilybooth. com DailyB ooth lets us ers follow their friends and update them in real-time through the us e of pictures and s ta tus updates . DailyMotion F rance www. da ilymotion. com Dailymotion S A R L provides on-line video content in F rance and E urope. It operates a video entertainment W ebs ite tha t provides video s ha ring s ervices . T he company als o ena bles s haring of official and profes s ional contents . Dailymotion S A R L wa s founded in 2005 and is bas ed in P aris , F rance. DataS ync United S tates www. da tas yncs uite. com DataS ync C orporation develops open s ource cons olida tion s oftware. T he company develops Data S ync S uite, a s oftware pla tform tha t integrates core applica tions into an open s ource s oftware-as -a-s ervice web porta l. DataS ync C orporation wa s founded in 2005 and is bas ed in S ioux F alls , S outh Dakota. E cas t Network United S tates www. ecas tinc. com E ca s t, Inc. opera tes a broadband touch s creen media network in the United S tates . T he company’s network delivers digital mus ic, games , entertainment, information, and a dvertis ing to bars a nd nightclubs . Its platform als o delivers on-dema nd content, including videos and s urveys ; s upports third-party applications ; and allows integration of W eb s ervices , s uch as mobile, e-commerce, and s ocial media, including photo s haring. T he company was founded in 1999 and is bas ed in S an F ra ncis co, C a lifornia. E ngine Yard United S tates www. engineya rd. com E ngine Y a rd, Inc. provides ma naged hos ting and deployment s olutions for R uby and R a ils applica tions . T he company offers a clus ter computing platform, deployment s upport, and data center s ervices . It helps its clients in building s ites and applica tions on-demand. E ngine Y ard, Inc. was founded in 2006 and is bas ed in S an F rancis co, C alifornia with additional loca tions in the U nited S tates , C anada, E urope, Is rael, the P hilippines , Aus tra lia , a nd New Zealand. F eedR oom United S tates www. feedroom. com T he F eedR oom, Inc. provides W eb video s olutions and technology for corporations , media /publis hing orga nizations , and government agencies . It offers broadband video dis tribution for W eb, s earch engines , and podcas ting; broadband video encoding, ma nagement, a nd delivery; performance reporting; broadband video application des ign and development; media a dvertis ing s ervices ; s ubs cription and regis tra tion tools ; email video alert delivery and tracking; and origina l content development and production. T he company was founded in 1999 and is bas ed in New Y ork, New Y ork. As of S eptember 30, 2009, T he F eedR oom, Inc. operates as a s ubs idiary of K IT digital, Inc. F izzback UK www2. fizzba ck. com T he F izzback G roup L imited provides a n on-demand s olution that drives cus tomer enga gement at the point-of-experience. Its s olution helps companies to lis ten, res pond, and a ct in rea l-time to their cus tomers ' comments . T he F izzback G roup was formerly known as Ins tant Ma rket Intelligence L imited a nd cha nged its name to T he F izzback G roup Limited in J anua ry 2007. T he company was founded in 2004 and is bas ed in L ondon, the United K ingdom. HubS pot United S tates www. hubs pot.com HubS pot, Inc. offers B 2B inbound marketing s oftwa re. Its products include H ubS pot O wner, which generates qualified leads and convert lea ds into s ales ; and HubS pot Marketer that offers inbound ma rketing tools . T he company als o provides s earch engine optimization, bus ines s blogging, competitor analys is , clos ed-loop marketing analytics , W ebs ite editor, lead tracking and intelligence, lead gra der, landing page wizard, marketing intelligence, s ocia l media, and inbound ma rketing s olutions . HubS pot, Inc. wa s founded in 2006 and is bas ed in C ambridge, Mas s achus etts . J ive S oftware United S tates www. jives oftware. com J ive S oftware, Inc. develops , markets , and s ells s ocial productivity and community s oftware s olutions for enterpris es in the United S ta tes and internationa lly. Its products include C lears pa ce, an enterpris e collabora tion s oftware, which applies a people-centric approach to fa cilitate workforce networking and collaboration applications ; C lears pace C ommunity, an enterpris e-clas s community s oftware that is us ed to build large online communities , as well as to engage cus tomers , and build brands and marketing initiatives ; a nd C lears tep, an online community s olution for s ocial and enterpris e 2. 0 profes s ionals . T he compa ny a ls o offers s trategic and technical cons ulting s ervices . T he company wa s founded in 2001 and is bas ed in P ortland, O regon. L inkedex UK NA B as ed in L ondon and S a n F rancis co, Linkedex aims to help companies analys e the proces s by which s earch engines deliver their res ults and a chieve higher rankings in natural (non-paid-for) s earch for their brands a nd s ervices . L is tia United S tates www. lis tia. com Lis tia, which launched in Augus t 2009, is eB ay for free s tuff. Us ers get a certain number of credits which they bid for the item, s o whoever wins the a uction is the pers on who wanted it the mos t. Us ers get credits in three wa ys : every us er gets a certain number automatically, a nd you can get more by a uctioning items , by referring friends , a nd by buying them. T he company is bas ed in S unnyvale, C a lifornia. Ooyala United S tates www. ooya la. com Ooya la is a video technology company that provides indus try-leading s olutions for managing, dis tributing and monetizing high-qua lity video online. F ounded by former G oogle engineers in April 2007, O oyala ta kes a novel approach at delivering video, targeting ads and collecting video a nalytics . S ince launching its flags hip product, B acklot, in December of 2007, O oyala has s igned up over 1000 paying cus tomers including W arner B rothers , A OL/B ebo, National G eographic, T V G uide a nd the G lam network. T he company is bas ed in Mountain V iew, Overtone United S tates www. overtone-inc. com C alifornia . Inc. delivers brand monitoring and engagement to va rious enterpris es . It offers O pen Mic s oftware-as -a -s ervice integrated lis tening Overtone, s ys tem, which delivers actionable ins ights from cons umer comments and extracts actionable intelligence from uns tructured cus tomer- genera ted content. T he company’s O pen Mic a ls o provides rea l time proces s ing, multi-cha nnel lis tening, and proven s calability. Overtone, Inc. was formerly known as Is land Data C orpora tion. T he company wa s founded in 1995 and is bas ed in S an F rancis co, C alifornia. As of 01/05/2004, O vertone, Inc. is a s ubs idiary of LiveP ers on, Inc. P opC ap G ames United S tates www. popcap. com P opC ap G a mes , Inc. develops and publis hes cas ual ga mes . Its games a re played on the W eb, des ktop computers , cell phones , s martphones , P DA s , pocket P C s , iP ods , iP hones , ga me cons oles , and in-flight entertainment s ys tems . T he company offers its products to W eb portals , reta il s tores , mobile opera tors and developers , and game device ma nufacturers . P opC ap G ames , Inc. wa s founded in 2000 and is bas ed in S eattle, W as hington. It has operations in C hica go, Illinois ; S an F rancis co, C alifornia; S hanghai, C hina; Dublin, Ireland; and R eality Mobile United S tates www. realitymobile. com R ancouver, B . C . , C anada. mobile video and data s ha ring technology. T he company was founded in 2003 a nd is bas ed in Herndon, V eality Mobile LLC provides S cout L abs United S tates www. s coutlabs . com V irginia . S cout Labs is a powerful, web-ba s ed a pplication that finds s ignals in the nois e to companies build better products and s tronger cus tomer relations hips . T he company provides technology and a collaborative platform for companies a nd their a gents to lis ten to cus tomers and enga ge with them out acros s the Internet. S ometrics United S tates s ometrics . com S ometrics , Inc. operates as an ana lytics and ad platform s tartup company s pecia lizing in s ocial media. It offers analytics a nd ad mana ging s olutions that focus on s ocial networking platforms and applications . T he company als o provides s ocial advertis ing s olutions , s uch as dis pla ys , engagements , and bra nd as s es s ments , as well as s ocial planners for advertis ers . In addition, it offers S ocial A nalytics that provide analys is for s ocial applications and W ebs ites ; S ocial Ad Manager that helps to s erve and optimize ads to increa s e revenue acros s s ocial media properties ; and V irtual C urrency Mana ger, a virtual currency platform des igned to provide an interface to manage dis pa ra te offer networks and relations hips for publis hers . T he company s upports F acebook, Mys pace, B ebo, F riends ter, and hi5 platforms . S ometrics , Inc. was founded in 2007 and is headquartered in L os Angeles , C alifornia . S pigit United S tates www. s pigit. com S pigit, Inc. des igns , develops , a nd dis tributes s ocial networking s oftwa re for bus ines s innovation. It provides s trategic and technical cons ulting, webs ite des igning, project foreca s ting, C R M applications , employee engagement tracking, web logs , and currency a nd idea management s ervices . T he compa ny markets its products under Innova tionS pigit, IdeaS pigit, and P redictionS pigit brand names . S pigit, Inc. is bas ed in P leas a nton, C alifornia. Technorati United S tates www. technorati. com T echnora ti, Inc. engages in s earching, s urfacing, a nd organizing blogs and us er-generated content on the W eb. It offers various citizen media on the W eb, which include blogs , videos , vlogs , podcas ts , photos , a nd games . T he company was founded in 2002 a nd is bas ed in S an F rancis co, C alifornia . Vdopia United S tates www. vdopia. com V dopia, Inc. operates a s an online video a dvertis ing network and platform compa ny. It enables advertis ers in India to a dvertis e on the online video content. T he company's s olutions to content owners and publis hers include V DOAd network to advertis e on video content; V DOA d pla tform with ca mpaign management tools to offer online video advertis ing to advertis ers /cus tomers ; B randC onnect Ad technology to deliver C P Ms ; analytic tools to provide s tatis tics about a ds and video a nalytics for client’s videos ; and A P Is to crea te/publis h content. Its s olutions to advertis ers , media planners , and marketers include publis her network, brand connect with various a d forma ts on various online Internet T V cha nnels , advertis ing, meas urable branding, and reporting. V dopia, Inc. wa s incorporated in 2007 and is bas ed in S an J os e, C alifornia with s ales and development offices in S an J os e, C alifornia; and G urgaon and Mumbai, India. VE VO United S tates www. vevo. com V E V O opera tes as a mus ic video web s ite. T he company is bas ed in the United S tates . ViVu United S tates www. vivu. tv V iV u, Inc. develops participative event platform that ena bles live video participa tion from a pers onal computer, Mac, and L inux without any proprietary downloads . It offers a s olution for event organizers to create, publis h, and manage quality video events . T he company was incorporated in 2008 and is bas ed in S unnyvale, C alifornia. W atercooler United S tates www. watercooler-inc. com W atercooler, Inc. operates F a nS ection and T V Loop online communities that enable us ers to acces s a network of online fa n communities in s ports a nd televis ion entertainment in the United S tates and internationally. T he company wa s founded in 2006 and is bas ed in Mountain V iew, C alifornia. Yext United S tates www. yext. com Y ext, Inc. provides online directories . It focus es on repres enting va rious bus ines s es acros s the United S tates . T he company wa s founded in 2006 and is bas ed in New Y ork, New Y ork. Figure 24. Company Descriptions Source. Company reports, Capital IQ, Crunchbase
    • Page 22 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