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    09 11 03 Web 2.0 Weekly 09 11 03 Web 2.0 Weekly Document Transcript

    • SOFTWARE & SERVICES 3 NOVEMBER 2009 DAVID SHORE, CFA, MBA 416.860.6784 WEB 2.O WEEKLY david.shore@researchcapital.com Damian Wojcichowsky, CFA (Associate), 416.860.7652 YOUR GPS SYSTEM IS OBSOLETE ALREADY… GO OGL E P RO V ID E S F R E E V OI C E- B A S ED T UR N- B Y- T UR N D RI VI NG D IR E CT IO NS Google Maps and Google Streetview are among the most popular applications in the Google stable. Layered on to these, Google has recently announced, will be free audio turn-by-turn navigation directions included with every Android mobile OS shipped. This free innovation is made possible courtesy of the army of automobiles prowling the world’s city streets building Google’s proprietary mapping database (at considerable cost to Google, no doubt). DO OM F O R T O MT O M, GA RMI N Not unexpectedly, the share prices of the proprietary (and non-free product vending) GPS device makers, TomTom and Garmin, plummeted on the news of Google’s latest application. Observe the latest 10-day stock charts for the two GPS device makers. AN D ROI D A T H R EA T T O P RO P RI ET AR Y P L AT F O R MS , SU C H A S A PP L E A N D BL A C KB E R RY This Google development threatens the two leading smartphone players, Apple and BlackBerry. Since both of these companies must purchase their own mapping data to offer a similar service, they are faced with the choice of taking a hit to margins or shipping their smartphones without free navigation. AN D ROI D ST E A DIL Y S IN KI NG IT S HO O KS I NT O T H E M OB IL E M A RK ET The possibilities for disruption in the mobile device space on the part of Google and its ad-based revenue model are beginning to come to light with every new, free application press release. Though Android-equipped phones have not made the same kind of splash as the iPhone nor have they the user-base loyalty of the BlackBerry, we expect that developments along the lines of Google’s latest will continue to bring the Android phone segment into the forefront. CAPITAL MARKETS ACTIVITY SLOWS DOWN AS OCTOBER WINDS UP October finishes limping: Total transaction value in the W eb 2.0 universe for October is $170.8 (vs. $151.2 million at time of last publication). The month ended with 26 financings in the sector averaging $6.6 million each (vs. an average of $7.6 million last week). In comparison, total capital raised in September was $232.8 million, averaging $9.0 million (26 deals); August was $221.6 million, averaging $7.6 million (29 deals); and July (35 deals) $191.4 million, averaging $5.5 million. 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 $69 billion (Figure 1). The median market cap for the group is $41.8 million, with average trailing revenue of $162 million (median $57 million). The companies are also generally profitable with a median EBITDA margin of 12.6%. On a valuation basis, the overall average is 5.2x trailing revenue (median 1.7x) and 10.2x trailing EBITDA (median 7.6x). Twenty of the companies have more than 500 employees. C omparable C ompany Analys is > Web 2.0 Trading C urrent US D Market US D L TM Total US D L TM Total E B ITDA TE V/L TM TE V/L TM C ompany Name L TM as of Ticker E xc hange C urrency HQ P rice C ap ($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 14,500 105. 2 108.7 25. 9 23. 8% 0. 7x 2. 8x NA AQ Interactive, Inc. 6/30/2009 3838 TS E JPY J a pan 46,800 28. 5 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. 03 0.9 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. 08 4.2 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 5.9 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. 35 249. 1 361.6 25. 1 6.9% 0. 7x 9. 7x 2, 227 C hangyou. com L imited 9/30/2009 C Y OU Na s daqG S US D C hina 30. 35 1,669. 3 255.3 157.4 61. 7% 5. 3x 8. 6x 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 426 1,104. 8 61. 6 34. 7 56. 3% 16.8x 29. 8x 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 0.7 2. 5 (1.2) -45. 8% 0. 3x - 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 83. 6 89. 8 9.7 10. 8% 0. 7x 6. 6x NA DADA S pA 6/30/2009 C M: DA CM E UR Italy 7. 07 167. 7 241.9 31. 8 13. 1% 0. 9x 6. 8x NA DXN Holdings B hd 5/31/2009 DX N K LS E MY R Ma la ys ia 0. 64 41. 6 77. 1 11. 1 14. 4% 0. 7x 5. 1x 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. 05 3.9 1. 0 (1.4) NM 5. 9x - 7 DigitalT own, Inc. 8/31/2009 DG T W OT C B B US D United S ta tes 1. 01 27. 6 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. 40 21. 5 0. 6 (3.4) NM 38.6x - NA E olith C o. Ltd. 12/31/2008 A041060 K OS E KR W S outh K orea 530 32. 2 15. 4 (3.6) -23. 6% 2. 2x - NA E xtens ions , Inc. 6/30/2009 E XT I OT C P K US D United S ta tes 0. 40 17. 8 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. 79 86. 4 5. 3 (5.1) -95. 2% 15.3x - NA F rogs ter Interactive P ictures AG 6/30/2009 FRG XT R A E UR G ermany 19. 05 71. 5 9. 6 (4.5) -47. 0% 7. 3x - NA G ama nia Digita l E ntertainment C o., Ltd. 6/30/2009 6180 GTS M TWD T aiwa n 44. 80 209. 8 140.6 25. 1 17. 9% 1. 3x 7. 4x NA G ameOn C o Ltd. 6/30/2009 3812 TS E JPY J a pan 85,200 92. 1 81. 9 20. 1 24. 5% 0. 2x 0. 9x 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 7 1,644. 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 3. 98 217. 0 183.6 NM NM 0. 8x - 751 G ravity C o., Ltd 6/30/2009 GR VY Na s daqG M US D S outh K orea 1. 57 43. 6 49. 1 16. 6 33. 9% - - 469 G ree, Inc. 6/30/2009 T S E : 3632 TS E JPY J a pan 5,090 2,548. 3 156.0 93. 7 60. 1% 15.6x 25. 9x NA G ungHo O nline E ntertainment, Inc. 6/30/2009 3765 OS E JPY J a pan 211,500 271. 0 119.5 26. 6 22. 2% 2. 0x 8. 9x NA HanbitS oft, Inc. 6/30/2009 A047080 K OS E KR W S outh K orea 3,420 62. 8 60. 7 1.4 2.3% 0. 8x 34. 8x NA IAC /InterActiveC orp. 9/30/2009 IAC I Na s daqG S US D United S ta tes 19. 02 2,510. 1 1, 359. 6 82. 4 6.1% 0. 6x 10. 5x 3, 200 IAS E nergy, Inc. 4/30/2009 IAS A. E OT C B B US D C anada 0. 12 8.5 0. 0 (0.6) NM - - NA is eemedia Inc. 3/31/2009 IE E T S XV C AD C anada 0. 15 6.8 1. 6 (5.0) NM 3. 7x - 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 0. 95 10. 9 1. 2 (1.9) NM 8. 3x - NA LiveW orld Inc. 6/30/2009 LVW D OT C P K US D United S ta tes 0. 04 1.2 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. 29 22. 1 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 5.4 0. 1 (2.5) NM - - 14 Mixi, Inc. 6/30/2009 2121 TS E JPY J a pan 781000. 00 1,345. 8 136.8 46. 2 33. 8% 9. 0x 26. 5x NA Modern T imes G roup Mtg AB 9/30/2009 MT G B OM SEK S weden 307. 10 2,906. 3 2, 002. 6 282.9 14. 1% 1. 7x 12. 2x 2, 969 MO K O .mobi Limited 6/30/2009 MK B AS X AUD Aus tralia 0. 09 8.3 0. 7 (2.4) NM 10.6x - NA Myriad G roup AG 6/30/2009 MY R N SWX C HF S witzerland 4. 89 209. 7 63. 0 3.4 5.4% 3. 3x - 405 NE O W IZ G ames C orpora tion 12/31/2008 A095660 K OS E KR W S outh K orea 38600. 00 681. 9 207.3 55. 7 26. 8% 3. 2x 12. 1x NA NetDragon W ebS oft, Inc. 6/30/2009 777 S E HK HK D C hina 5 326. 7 89. 3 25. 7 28. 7% 2. 0x 7. 0x 3, 109 Neteas e. com Inc. 6/30/2009 NT E S Na s daqG S US D C hina 37. 69 4,878. 1 472.4 297.4 63. 0% - - 3, 109 NeuLion Incorporated 6/30/2009 T S X :NLN TS X C AD C anada 0. 70 71. 1 21. 5 (13. 0) -60. 3% 2. 8x - 237 NeXplore C orporation 6/30/2009 NX P C OT C P K US D United S ta tes 1 41. 8 1. 7 (13. 3) NM 27.0x - NA Ngi G roup Inc. 6/30/2009 2497 TS E JPY J a pan 27550. 00 38. 2 93. 0 6.9 7.4% - - NA Northgate T echnologies L imited 6/30/2009 590057 BSE INR India 29. 30 21. 3 82. 9 (41. 5) -50. 0% 0. 3x - NA O pen T ext C orp. 9/30/2009 OT E X Na s daqG S US D C anada 36. 93 2,082. 2 814.5 211.1 25. 9% 2. 6x 10. 2x 3, 411 O penwave S ys tems Inc. 9/30/2009 OP W V Na s daqG S US D United S ta tes 2. 06 172. 0 190.5 5.6 3.0% 0. 4x 11. 9x 590 P erfect W orld C o. , Ltd. 6/30/2009 PWRD Na s daqG S US D C hina 43. 24 2,178. 9 255.6 142.2 55. 6% 0. 7x 1. 2x 2, 096 P NI Digital Media Inc. 6/30/2009 T S X V :P N T S XV C AD C anada 1. 80 56. 6 21. 0 2.3 11. 0% 2. 6x 23. 6x NA Q uepa s a C orp. 6/30/2009 QP S A OT C B B US D United S ta tes 1 15. 3 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 45. 20 3,039. 9 629.0 296.7 47. 2% - - 3, 124 S hutterfly, Inc. 9/30/2009 S FLY Na s daqG S US D United S ta tes 14. 24 365. 3 223.1 28. 2 12. 6% 1. 1x 9. 0x 514 S K C ommunications C o., Ltd. 12/31/2008 A066270 K OS E KR W S outh K orea 7050. 00 247. 4 192.7 12. 5 6.5% 1. 3x 19. 7x NA S NAP Interactive, Inc. 6/30/2009 S TVI OT C B B US D United S ta tes 0 2.3 3. 5 0.9 27. 0% 0. 2x 0. 7x 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. 50 22. 1 0. 0 (5.6) NM - - NA S ohu. com Inc. 9/30/2009 S O HU Na s daqG S US D C hina 54. 07 2,072. 7 501.0 218.5 43. 6% 3. 1x 7. 0x 3, 197 S park Networks , Inc. 6/30/2009 L OV AME X US D United S ta tes 3 59. 3 50. 5 10. 8 21. 3% 1. 1x 5. 3x 183 S pectrumDNA, Inc. 6/30/2009 S P XA OT C B B US D United S ta tes 0 7.3 0. 1 (2.5) NM - - 7 T encent Holdings Ltd. 6/30/2009 700 S E HK HK D C hina 143 33, 542.7 1, 391. 6 680.3 48. 9% 26.6x - 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 7. 82 196. 2 250.6 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. 41 73. 8 67. 0 1.9 2.9% 0. 1x 4. 7x 310 T ree.C om, Inc. 6/30/2009 TR E E Na s daqG M US D United S ta tes 8. 05 87. 7 216.6 (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 7. 86 659. 0 949.8 203.2 21. 4% 1. 0x 4. 5x 1, 469 UOMO Media, Inc 7/31/2009 UO MO OT C B B US D C anada 0 6.6 0. 8 (0.4) -54. 2% 8. 9x - NA V alueC lick Inc. 9/30/2009 V C LK Na s daqG S US D United S ta tes 9 802. 7 545.7 130.8 24. 0% 1. 2x 4. 9x 1, 189 V OIS , Inc. 6/30/2009 V O IS OT C B B US D United S ta tes 0 3.3 0. 0 (1.0) NM - - 4 W ebzen Inc. 6/30/2009 W ZE N Na s daqG M US D S outh K orea 3. 03 35. 9 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. 43 21. 7 5. 3 (4.5) -84. 9% 4. 3x - 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 34. 88 269. 3 58. 9 17. 0 28. 8% 3. 7x 12. 8x 246 Y D O nline C orp. 12/31/2007 A052770 K OS E KR W S outh K orea 6810. 00 85. 6 57. 4 12. 4 21. 6% 1. 6x 7. 6x NA Y nk K orea Inc. 12/31/2008 A023770 K OS E KR W S outh K orea 3900. 00 17. 4 11. 9 1.3 10. 5% - - NA High 33, 542.7 2,002. 6 680. 3 63. 0% 49.2x 34. 8x 6, 421 Low 0.0 0. 0 -41.5 -98. 9% - - 1 Average 780.0 161.7 39.9 6.2% 5.2x 10.2x 936 Median 41. 8 57.1 1. 7 12. 6% 1. 7x 7. 6x 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 ) October finishes limping: Total transaction value in the W eb 2.0 universe for October is $170.8 (vs. $151.2 million at time of last publication). The month ended with 26 financings in the sector averaging $6.6 million each (vs. an average of $7.6 million last week). In comparison, total capital raised in September was $232.8 million, averaging $9.0 million (26 deals); August was $221.6 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 8.0 7.0 7.0 7.1 6.5 6.6 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 end: 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 $10 million or less. For additional details on financings, see Figures 23 and 24 (at end of note). Financing & M/A Summary - Last Three Months 200.0 180.0 160.0 140.0 120.0 Nov-09 (US$m) Oct-09 100.0 Sep-09 Aug-09 80.0 60.0 40.0 20.0 0.0 DailyMotion Jive Software MediaMath Mzinga InXpo NextBio Reality Mobile HiveLive Boxee Polyvore Fwix Yext Box.net RightsFlow Skype Zoove RichRelevance Ooyala Edo Interactive Jobvite InnoCentive Booyah YuMe Z2Live Overtone Greystripe DailyBooth iSyndica OnLive Aviary Mocapay Vantrix Fizzback Roblox Linkedex Twitter Dopplr MOG Unisfair Fluther Scoopler Mint Turbine Friends Reunited Ensequence iLike Engine Yard Traffiq CubeTree Balihoo Vuclip Fanbase Vdopia NeoEdge Alliance Health ViVu OurStage Scoreloop Godengo Tremor Media Plista FourSquare Onehub EduFire ChessCube Hot Potato IngBoo Chango Listia NowPublic Ecast Network Livebookings Scout Labs Conduit Labs MashLogic Tiny Pictures DataSync Linksify Gigpark Smith & Tinker VEVO HubSpot Spigit ScanScout OneRiot iSocket StatusNet Aurora Feint KODA Technorati Loomia TransGaming PopCap Games Riot Games Sometrics FeedRoom Bill.com Amie Street 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 (12). Advertising continues to be among the highest activity sectors with 11 deals in the past quarter. Gaming follows with nine transactions followed by Collaboration (7) (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 2,025.0 192.3 122.0 100.9 97.4 70.3 70.3 46.0 37.5 37.9 35.5 34.0 26.1 17.1 15.8 14.0 13.2 13.0 11.5 3.9 3.6 2.2 2.0 1.3 0.0 Comment/Reputation Social Commerce Communities Gaming Microblog Collaboration Enterprise Mobile Media Publishing Online Learning Music SMS/Voice Infrastructure Search Advertising/Mobile Mobile Ad Social Networks Advertising Video Crowdsourced Virtual World Aggregation Analytics Vertical Content # companies 1 3 9 2 12 11 6 4 7 4 5 4 4 3 5 2 1 2 4 1 2 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 250 200 150 100 50 0 11/3/2008 11/17/2008 12/1/2008 12/15/2008 12/29/2008 1/12/2009 1/26/2009 2/9/2009 2/23/2009 3/9/2009 3/23/2009 4/6/2009 4/20/2009 5/4/2009 5/18/2009 6/1/2009 6/15/2009 6/29/2009 7/13/2009 7/27/2009 8/10/2009 8/24/2009 9/7/2009 9/21/2009 10/5/2009 10/19/2009 11/2/2009 Index: Web 2.0 (Market Cap) ^COMP - Share Pricing Figure 5. Web 2.0 Price Performance Source. Capital IQ
    • Page 7 Broad-based price declines: Eight companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), while 38 companies showed negative 1-week returns. 1 Week P rice P erformance S park Netw orks , Inc. 12.5% Webz en Inc. 9.5% My riad Group A G 8.9% Y nk K orea Inc. 6.6% PNI Digital Media Inc. 6.5% Mix i, Inc. 6.0% G ree, Inc. 1.0% Neteas e.com Inc. 0.7% OA O R B C Information S y s tems 0.0% K ings of t Co. Ltd. 0.0% Cy berplex Inc. 0.0% Chines e Gamer International -0.5% Fluid Mus ic Canada , Inc. -0.6% Tree.Com, Inc. -0.9% LookS mart, Ltd. -1.5% IA C/InterA ctiveCorp. -1.7% XING A G -1.9% The9 Limited -2.9% S handa Interactive Entertainment Ltd. -3.0% G ravity Co., Ltd -3.1% A Q Interactiv e, Inc. -3.3% S hutterf ly , Inc. -3.3% G ameOn Co Ltd. -3.6% Tencent Holdings Ltd. -3.8% United Online Inc. -3.9% HanbitS of t, Inc. -3.9% Giant Interactive G roup, Inc. -4.0% Y D Online Corp. -4.2% Frogs ter Interactiv e Pictures A G -4.3% NEOWIZ Games Corporation -4.7% CDC Corp. -4.9% DA DA S pA -5.4% Perfect World Co., Ltd. -5.7% Modern Times G roup Mtg A B -5.7% Changy ou.com Limited -6.0% Open Tex t Corp. -6.3% NetDragon WebS of t, Inc. -6.6% V alueClick Inc. -7.1% Eolith Co. Ltd. -7.8% Gamania Digital Entertainment Co., -8.3% Ngi G roup Inc. -9.1% S K Communications Co., Ltd. -9.6% S ohu.com Inc. -9.8% A ctoz S of t Co., Ltd. -11.0% Quepas a Corp. -11.1% G igaMedia Ltd. -11.9% TheS treet.com, Inc. -13.3% Openw ave S y s tems Inc. -24.0% DigitalTow n, Inc. -49.5% -0.6 -0.5 -0.4 -0.3 -0.2 -0.1 0 0.1 0.2 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 S ohu.com Inc. (Nas daqGS : S OHU) Q uarterly Update to S ohu.com, Inc. ’s E quity B uyback on O n O ctober 26, 2009, S ohu. com, Inc. announced that during the qua rter ending S eptember 30, 2009, it has ma de no O ctober 26, 2009 repurcha s es under the program. As of S eptember 30, 2009, S ohu has repurcha s ed 501,686 s ha res a t an avera ge price of $39.86 for a tota l cons ideration of $20 million under the program. C hangyou.com L imited C ha ngyou. com L imited R eports Unaudited C ons olidated C hangyou. com Limited 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 ua rter a nd Nine Months S eptember 30, 2009. F or the qua rter, the company's total revenues were $68, 684, 000 a gains t $54,604,000 a year ago. T he E nded S eptember 30, 2009; P rovides E arnings increas es were mainly due to increas ed popula rity of the company's flags hip game, T L B B . O perating profit wa s G uidance for the F ourth Q ua rter of 2009 $42,288, 000 agains t $32, 474,000 a year ago. Income before income ta x expens e wa s $43, 288,000 aga ins t $32,791, 000 a yea r ago. Net income was $37,794,000 agains t $32, 084, 000 a year a go. Diluted net income per ADS wa s $0.71 a gains t $0. 68 a year ago. Non-G AAP opera ting profit was $45,842, 000 a gains t $33, 725,000 a yea r ago. Non-G AAP net income was $41, 348, 000 a gains t $33, 335,000 a yea r 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. T he compa ny es timates tota l revenues for the fourth qua rter of 2009 to be between $69.0 million and $71. 0 million. Non- G AAP net income for the fourth quarter of 2009 to be between $41. 5 million and $42.5 million. Non-G AAP fully diluted earnings per ADS for the fourth quarter of 2009 to be between $0. 78 and $0.80. S ohu.com Inc. (Nas daqGS : S OHU) S ohu.com Inc. R eports Unaudited C ons olida ted S ohu.com Inc. reported unaudited cons olida ted earnings res ults for the third qua rter a nd nine months ended S eptember 30, E arnings R es ults for the T hird Q ua rter a nd Nine Months 2009. F or the quarter, the compa ny reported net income a ttributable to company of $37,354, 000 or $0. 88 per s hare on tota l E nded S eptember 30, 2009; P rovides E arnings revenue of $136, 585,000 aga ins t net income a ttributa ble to company was $40,261, 000 or $1. 02 per s ha re on total revenue G uidance for the F ourth Q ua rter of 2009 of $120, 676,000 in the s ame period of las t year. O pera ting 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 a gains t $45, 230,000 in the s ame period of las t year. Income from continuing operations was $47, 080, 000 a gains t $40, 238,000 in the s a me period of las t yea r. As per non- G AAP , net income attributable to company was $40,921, 000 or $0. 96 per s hare on tota l revenue of $136,585, 000 agains t net income attributable to company was $42,822, 000 or $1. 08 per s hare on tota l revenue of $120,676, 000 in the s a me period of las t year. As per non-G AAP , operating profit was $57, 077,000 agains t $46,319, 000 in the s a me period of las t yea r. T he compa ny provided earnings guidance for the fourth quarter of 2009. It es tima tes tota l revenues to be between $134.5 million and $138. 5 million. It es tima tes non-G AAP net income before deducting the s ha re of non-G AAP net income perta ining to the non-controlling interes t in C ha ngyou to be between $49. 5 million to $51. 5 million. After deducting the s hare of non-G AAP net income pertaining to the non-controlling interes t in C hangyou, it es timates non-G AAP net income to be between $35.0 million to $37.0 million a nd non-G AAP fully diluted earnings per s ha re to be between 90 cents and 95 cents . C ons idering its s hare in C hangyou, the es timated impa ct of this expens e is expected to reduce its fully diluted earnings per s hare for the fourth quarter of 2009 under US G AAP by US 6 cents to US 8 cents . Quepas a C orp. (OTC B B : QP S A) Q uepas a La unches Developer Interface and O pen Q uepas a C orp. a nnounced the launch of its Developer Interface and O pen S ocial S andbox. T he launch of the Developer S ocial S a ndbox Interfa ce is pa rt of Q uepas a's overall s trategy to open the s ite to third party O pen S ocial developers who would like to develop applica tions for its global audience. T he compa ny believes that this new Developer Interfa ce and O pen S ocial S andbox will become an ea s y mechanis m for developers to tes t a nd s ubmit their applica tions for inclus ion in the s ite's Application a nd/or G a mes s ections a nd thus enhance the overall us er experience a nd drive s ite traffic and monetiza tion. T he Developer Interface cons is ts of a toolbox that developers us e when s ubmitting a n O pen S ocia l application for inclus ion on any s ocial s ite. T he toolbox includes documentation of the interfaces a vailable, a news area, a community built for the developers where they can communicate and interact with other application developers a s well as with Quepa s a's development tea m, a nd the O pen S ocial S a ndbox where they can tes t completed applications with va lid tes t data. IAC /InterActiveC orp. (Nas daqG S : IAC I) Update to IAC /InterActiveC orp’s E quity B uyback IAC /InterActiveC orp announced that it has repurcha s ed approximately 5,600, 000 s hares at an average price of $16. 69 per s hare during the qua rter ended S eptember 30, 2009. T ill J une 30, 2009, IAC has repurcha s ed 22,874, 884 s hares for a total cos t of $653.16 million under the progra m. As of S eptember 30, 2009, the company has repurcha s ed approximately 28, 474,884 s hares for a tota l of $746. 62 million. Open Text C orp. (Nas daqG S : OTE X) O pen T ext C orp. announces an E quity B uyback O pen T ext C orp. (Nas da qG S : O T E X ) announced its intention to ma ke a normal cours e is s uer bid through the facilities of the NAS DAQ G loba l S elect Ma rk et on O ctober 27, 2009. Under the bid, O pen expects to repurcha s e approximately up to 2,819, 037 s hares . T he maximum number of s hares tha t ma y be purcha s ed is calculated as 5% of the outs tanding common s hares of O pen T ext at the beginning of the bid. T he repurcha s es over the NAS DAQ could commence in November 2009 if des irable. T he bid will expire one year from the commencement date. IAC /InterActiveC orp. (Nas daqG S : IAC I) IAC /InterActiveC orp. R eports Unaudited C ons olida ted IAC /InterActiveC orp. reported unaudited cons olida ted earnings res ults for the third qua rter a nd nine months ended E arnings R es ults for the T hird Q ua rter a nd Nine Months S eptember 30, 2009. F or the qua rter, the company reported net income attributa ble to IAC s hareholders of $21. 6 million or E nded S eptember 30, 2009 $0. 16 per diluted s hare on revenue of $336. 5 million agains t net los s attributable to IAC s hareholders of $14. 8 million or $0. 11 per diluted s hare on revenue of $369. 2 million a year a go. E a rnings from continuing operations were $23.8 million or $0. 18 per diluted s hare aga ins t los s from continuing operations $1. 2 million or $0. 01 per diluted s hare a year ago. O perating income was $7.1 million a gains t operating los s of $22.6 million a year a go. E a rnings from continuing operations before income taxes were $58. 08 million a gains t los s from continuing operations before income taxes of $86. 6 million a yea r ago. Adjus ted E P S was $0. 34 agains t adjus ted los s per s hare of $0. 14 a year ago. S ocial Media Ventures Inc. S ocial Media V entures Inc. S igns Marketing Agreement S ocial Media V entures Inc. announce tha t it has s igned a marketing a ffiliate a greement with P ets criptions .com. (OTC P K : S MVI) with P ets criptions . com P ets criptions . com is a provider of pharma ceuticals , medicine, a nd other innova tive products for pets . P ets criptions .com offers pet owners acces s to inexpens ive pet products including medicine a nd pha rmaceutica ls . T he online reta iler offers direct s hipments of pet pha rmaceutica ls and other pet s upply products directly to its cus tomers , offering cus tomer s avings on a wide arra y of pet medicines . All products a re ins pected by the K entucky B oard of P ha rmacy. Figure 7a. Key Developments Source. Capital IQ
    • Page 9 K ey Developments - c ontinued C ompany Headline Notes Open Text C orp. (Nas daqG S : OTE X) O pen T ext C orp. Announces Unaudited C ons olida ted O pen T ext C orp. announced unaudited cons olidated fina ncial res ults for the firs t quarter ended S eptember 30, 2009. T ota l F inancia l R es ults for the F irs t Q ua rter E nded S eptember revenue for the firs t quarter wa s $211.4 million, up 16% compa red to $182.6 million for the s a me period in the prior fis cal 30, 2009 yea r. Adjus ted net income in the quarter was $32. 8 million or $0.58 per s hare on a diluted ba s is , up 16% compared to $28. 2 million or $0. 53 per s hare on a diluted bas is for the s a me period in the prior fis cal year. Net income in accordance with U. S . generally accepted accounting principles wa s $1.7 million or $0.03 per ba s ic a nd diluted s hare compared to $14. 7 million or $0. 28 per s ha re on a diluted bas is for the s ame period in the prior fis cal yea r. T he company reported income before income tax of $5.186 million and income from opera tions of $4. 792 million compared to income before income ta x of $20. 712 million and income from opera tions of $22. 977 million for the s ame period of la s t year. T he compa ny reported net cas h provided by opera ting activities of $4.502 million a nd additions of ca pital as s ets , net of $7.665 million compared to net cas h provided by opera ting activities of $24. 813 million and a dditions of capital a s s ets , net of $3.887 million for the s ame period of las t year. ValueC lic k Inc. (Nas daqG S : VC L K ) V alueC lick Inc. R eports Unaudited C ons olida ted V alueC lick Inc. reported unaudited cons olida ted earnings res ults for the third qua rter a nd nine months ended S eptember E arnings R es ults for the T hird Q ua rter a nd Nine Months 30, 2009. F or the qua rter, revenue was $130.2 million, adjus ted-E B IT DA of $33. 4 million. T he C ompany genera ted E nded S eptember 30, 2009 ; P rovides E arnings approximately $22. 6 million in free cas h flow in the third qua rter, defined as net cas h from opera tions les s capital G uidance for the F ourth Q ua rter of 2009 expenditures . G AAP net income was $25.0 million, or $0. 29 per bas ic and diluted common s hare. T he C ompany recorded an income tax benefit in the third quarter of 2009 of $2.7 million due to favorable income tax adjus tments recorded in the qua rter. E xcluding thes e adjus tments and as s uming the normaliz ed 42% effective tax rate included in the company's previous ly-is s ued third quarter guida nce, net income would have been $13. 0 million, or $0. 15 per diluted common s hare. Non-G AAP net income, which excludes dis continued operations , s tock -bas ed compens a tion and a mortiz ation of inta ngible as s ets wa s $30. 3 million, or $0. 34 per diluted common s hare. T he company reported net income of $1.999 million or $0.02 per bas ic and diluted s hare on revenue of $148.065 million for the third qua rter of 2008. T he company reported income before T he compa ny provided earnings guidance for the fourth quarter of 2009. T he company expects adjus ted E B IT DA of $32 million to $35 million on revenue of $128 million to $138 million for the fourth qua rter of 2009. T he company expects G AAP diluted net income per common s ha re of $0. 15 to $0.16 a nd Non-G AAP diluted net income per common s hare of $0.21 to $0. 22 for the fourth qua rter of 2009. S handa Interactive E ntertainment L td. S handa Interactive E nterta inment Ltd. , Annua l G eneral S handa Interactive E nterta inment Ltd., Annua l G enera l Meeting, O ct 28, 2009, at 10:00 C C T -C hina C oas t, US S R Zone 7. (Nas daqG S :S NDA) Meeting, O ct 28, 2009 Loca tion: Is land S hangri-La, L evel 7, executive boardroom, P a cific P lace, S upreme C ourt R oad, C entral, Hong K ong. Agenda: T o elect 8 directors to s erve for the ens uing year or until their s ucces s ors are elected and duly qua lified; and to cons ider any other bus ines s properly brought before the meeting. Quepas a C orp. (OTC B B : QP S A) Q uepas a C orp. - C onference P res entation C a ll T o communicate progres s achieved in developing its bus ines s model S hutterfly, Inc . (Nas daqG S :S FL Y) S hutterfly Inc. R eports C apita l E xpenditure for the T hird S hutterfly Inc. reported capita l expenditure of $4. 9 million for the third quarter ended S ep. 30, 2009, which included $2. 7 Q uarter E nded S ep. 30, 2009; P rovides F ree C as h F low million for technology equipment a nd s oftware, approximately $1. 1 million for ma nufacturing equipment and building O utlook for the Y ear 2009 improvements a nd $1. 1 million in capita liz ed s oftware development cos ts . T he compa ny now expects full year 2009 free cas h flow to ra nge from approximately $14 million to a pproxima tely $22 million. Open Text C orp. (Nas daqG S : OTE X) O pen T ext C orp. Announces New R elea s e of its O pen T ext C orp. announced a new relea s e of its enterpris e porta l s olution, V ignette P ortal vers ion 8. 0. T he s olution allows E nterpris e P ortal S olution, V ignette P orta l V ers ion 8.0 organiz ations to provide cus tomers , employees a nd pa rtners with a rich internet experience where they can find relevant and pers onalized informa tion aggrega ted from multiple bus ines s and cons umer-ba s ed s ys tems . V ignette P orta l 8. 0 s implifies the adminis tration a nd creation of dynamic, content-rich W eb s ites with the ability to rapidly s yndicate porta l applications acros s W eb properties powered by multiple s ys tems . V ignette P orta l 8 from O pen T ext expands on the vers a tility and rich interopera bility a fforded a pioneer in the enterpris e portal s pace. It helps bus ines s es unify their W eb s oftware portfolios into s leek, eas y-to-us e W eb s ites a nd allows thos e s a me bus ines s es to engage cus tomers and partners with rich a nd s ocially ena bled W eb experiences . T he relea s e of P ortal 8. 0 not only demons trates O pen T ext's continued commitment to V ignette cus tomers and technology, but als o ena bles additional s ocial media ca pabilities that align with the company's s tra tegic development of E nterpris e 2. 0 s olutions . O pen T ext recently announced that it plans to enhance its E C M S uite w technology from its exis ting W eb S olutions and V ignette. B y offering a variety of s olutions , the company will allow organiz ations -regardles s of s iz e a nd indus try-to s ucces s fully addres s their bus ines s needs . Tencent Holdings L td. (S E HK : 700) C hina Unicom T eams Up with T encent's T enP ay for T enpay, an online payment s ervice operated by C hina's T encent H oldings Ltd. , has s igned a contra ct with C hina U nicom O nline P ayments (Hong K ong) Ltd. to provide online pa yment s ervices . Under the terms of the contract, the carrier's us ers ca n us e T enpay to recharge their phones via C hina Unicom's online s ervice center and a pply for C hina Unicom's online value-added s ervices . T hey can als o buy prepaid cards , mobile hands ets and 3G data cards from the ca rrier's online s tore. T encent's T enpay handled €2. 53 billion worth of tra ns actions in the s econd quarter of 2009. C hina Unicom will a ls o us e T enpay's e-billing s ervices to handle pa yments between online s ervice centers and provincial divis ions . OAO R B C Information S ys tems O AO R B C Information S ys tems R eaches $208 Million O AO R B C Information S ys tems reached a $208 million debt res tructuring deal with the creditors . (R TS :R B C I) Debt R es tructuring Deal K ings oft C o. L td. (S E HK : 3888) K ings oft La unches W ap. s houji. cn K ings oft C o. L td. la unched wireles s Internet webs ite wa p.s houji.cn in an attempt to offer va rious mobile phone application s ervices for us ers . S ince the open beta tes ting on O ctober 1, 2009, wa p.s houji.cn has been luring 600,000 unique vis itors at mos t per day, with da ily pa ge view of 2.3 million or s o. T he new s ite, which offers mobile phone-ba s ed s oftware, ga me, theme, as well a s picture downloading s ervices , will be opened not only to K ings oft us ers but a ls o to mobile phone us ers , noted an official from the Hong K ong-lis ted compa ny. S o far, K ings oft ha s joined hands with nea rly 100 mobile phone s oftware companies , collecting approximately 1, 000 kinds of mobile phone s oftware and more tha n 10, 000 mobile phone games and theme products . T he products ca n meet the dema nd of mobile phone us ers . P ay88, Inc. (OTC B B : P AYI); S ohu.com P ay88, Inc. E nters Dis tribution Agreement with S ohu.com P ay88, Inc. announced that it ha s entered into a dis tribution agreement with S ohu. com Inc. T hrough its s ubs idiary, Q ianbao Inc. (Nas daqG S :S OHU) T echnology, P ay88 will act a s a dis tributor of S O HU digita l products , with a pa rticular focus on mobile phone games . As a res ult of this new rela tions hip, Q ianbao T echnology will now be a ble to offer mobile ga mes to the domes tic market in C hina . Figure 7b. Key Developments – continued Source. Capital IQ
    • Page 10 K ey Developments - c ontinued C ompany Headline Notes S hutterfly, Inc . (Nas daqG S : S FL Y) S hutterfly Inc. R eports Unaudited C ons olidated E arnings S hutterfly Inc. reported unaudited cons olidated earnings res ults for the third quarter and nine months ended S eptember 30, R es ults for the T hird Q uarter and Nine Months E nded 2009. F or the quarter, the company reported los s from operations of $9. 055 million, los s before income taxes of $9. 003 S eptember 30, 2009 ; P rovides E arnings G uidance for million and net los s of $6. 346 million or $0. 25 per bas ic and diluted s hare on net revenues of $40. 495 million compared to the F ourth Q uarter and F ull Y ear of 2009 the los s from operations of $9. 226 million, los s before income taxes of $8. 871 million and net los s of $2. 800 million or $0. 11 per bas ic and diluted s hare on net revenues of $35. 953 million for the s ame period a year ago. Adjus ted E B IT DA was $2. 0 million, compared to $0. 1 million in the third quarter of 2008. T he company provided earnings guidance for the fourth quarter and full year of 2009. F or the quarter, the company expects that net revenues to range from $102. 6 million to $112. 6 million, a year-over-year change of (4% ) to 5% . G AA P operating income to range from $21 million to $27 million. Non-G AA P operating income to range from $26 million to $32 million. G AAP diluted net los s per s hare to range from $0. 55 to $0. 66. Non-G A AP diluted net los s per s hare to range from $0. 68 to $0. 78. Adjus ted E B IT DA to rang C hangyou.c om L imited C hangyou. com L imited O pens U . S . S ubs idiary C hangyou. com L imited has opened its U. S . s ubs idiary in S ilicon V alley and aims to introduce its hugely s ucces s ful online (Nas daqG S : C YOU) games in A s ia to American gamers . T he company's firs t releas e in the U. S . market Dragon Oath will launch O pen B eta Nov. 5. Dragon Oath, which has run in A s ia for over three years , has over 75 million regis tered players and 910, 000 concurrent us ers . Quepas a C orp. (OTC B B : QP S A) Q uepas a C orp. - C onference P res entation C all T o communicate progres s achieved in developing its bus ines s model and to inform attendees of the abundant mark et DigitalP os t Interac tive, Inc . DigitalP os t Interactive, Inc. - C onference P res entation opportunity the company's bus ines s , itioned within both the L atino market and s ocial networking s pace. by recently T o dis cus s and how company is pos growth s trategy and outlook, including the opportunities pres ented (OTC B B : DG L P ) C all announced contracts with major new bus ines s partners in the photography market Openwave S ys tems Inc . O penwave S ys tems Inc. P rovides E arnings G uidance for O penwave S ys tems Inc. provided earnings guidance for the full year of fis cal 2010. T he company thinks that the full year of (Nas daqG S : OP W V) the F ull Y ear of F is cal 2010 fis cal 2010 will be cas h flow neutral to pos itive from operations . T he company will focus on maintaining a non-G AAP net income breakeven level until and s ees revenue improvement. S ince the majority of revenue comes from backlog, outlook for 2010 remains unchanged des pite the improvement in firs t quarter of fis cal 2010. T he company expects 2010 revenue to be a s us tained level as 2009. J umbuc k E ntertainment L imited J umbuck E ntertainment L imited Announces New J umbuck E ntertainment L imited announced at its AG M held on October 29, 2009, elected Adrian R is ch, B ruce B ennie and (AS X: J MB ) A ppointments Harvey P arker as directors of the company. J umbuc k E ntertainment L imited J umbuck E ntertainment L imited, A nnual G eneral J umbuck E ntertainment L imited, Annual G eneral Meeting, O ct 29, 2009, at 15: 00 E AS T -E as t Aus tralian S tandard G S T . (AS X: J MB ) Meeting, O ct 29, 2009 L ocation: T he S ebel Hotel Melbourne, 394 C ollins S treet, Melbourne V ic 3000, Aus tralia. Agenda: T o receive and cons ider the financial report and the reports of the directors and of the auditor for the financial year ended J une 30, 2009; to adopt the remuneration report of the company for the financial year J une 30, 2009; and to cons ider the election of directors . B right Things plc (AIM: B GT) B right T hings plc, Annual G eneral Meeting, O ct 29, 2009 B right T hings plc, Annual G eneral Meeting, O ct 29, 2009, at 10: 00 G MT T ime. L ocation: T he offices of F aegre & B ens on L L P , 7 P ilgrim S treet, L ondon E C 4V 6L B , U nited K ingdom. Agenda: T o is s ue s hares in the C ompany both pro-rata to exis ting s hareholders and to non-s hareholders ; to amend the articles of as s ociation of the C ompany to reflect recent changes in company legis lation in the UK . Openwave S ys tems Inc . O penwave S ys tems Inc. R eports C ons olidated E arnings O penwave S ys tems Inc. announced that revenues for the firs t fis cal quarter ended S eptember 30, 2009 were $49. 8 million, (Nas daqG S : OP W V) R es ults for F irs t Quarter E nded S eptember 30, 2009 compared with $47. 9 million in the prior quarter ended J une 30, 2009 and $51. 0 million in the S eptember quarter in the preceding fis cal year. O n a G A AP bas is , net income for the firs t fis cal quarter ended S eptember 30, 2009 was $990, 000, or $0. 01 per s hare, compa red with a net los s of $3. 4 million, or $0. 04 per s hare, in the prior quarter and a net los s of $10. 5 million, or $0. 13 per s hare, in the S eptember quarter in the preceding year. O n a non-G AAP bas is , net los s for the firs t fis cal quarter ended S eptember 30, 2009 was $380, 000, or $0. 00 per s hare, compared with net los s of $278, 000 or $0. 00 per s hare, in the prior quarter and net los s of $1. 0 million, or $0. 01 per s hare, during the S eptember quarter of the prior year. O perating los s from continuing operations for the period was $1. 8 million a gains t $5. 5 million for s ame period a year ago. P re-tax los s from continuing operations was $3. 0 million agains t $12. 0 million for s ame period a year ago. Net los s from continuing operations was $3. 5 million or $0. 04 per diluted s hare agains t net los s from continuing operations was $12. 5 million or $0. 15 per diluted s hare for s ame period a year ago. Net cas h us ed in operating activities for the period was $8. 8 million agains t $2. 9 million for s ame period a year ago. P urchas es of property and equipment, net for the period was $607, 000 agains t $477, 000 for s ame period a year ago. Northgate Tec hnologies L imited Northgate T echnologies L imited, B oard Meeting, Oct 30, Northgate T echnologies L imited, B oard Meeting, O ct 30, 2009 Agenda: T o cons ider and take on record the unaudited (B S E : 590057) 2009 financial res ults for the quarter and half year ended S eptember 30, 2009. DigitalFX International, Inc . S us an Hantman R es igns from the B oard of Directors of DigitalF X Interna tional, Inc. announced that it has received a letter from S us an Hantman dated O ctober 21, 2009, informing (OTC B B : DG F X) DigitalF X International, Inc. about her res ignation from the company's B oard of Directors . VOIS , Inc . (OTC B B : VOIS ) V OIS , Inc. Announces Management C hanges ; O n O ctober 30, 2009 Mr. Herbert T abin, a member of the B oard of Directors and S enior V ice P res ident - C orporate A pproves Articles of A mendment to Its Articles of Development of V O IS , Inc. res igned his pos itions as an executive officer and director of the company. T here were no Incorporation dis agreements between the company and Mr. T abin on any matter. T he B oard of Directors appointed Mr. Mark B . L ucky to the B oard to fill the vacancy res ulting from Mr. T abin's res ignation and appointed Mr. L ucky and S ecretary. Mr. L uck y has s erved as the C hief F inancial O fficer of IceW E B Inc. s ince March 2007. O n O ctober 29, 2009 the B oard of Directors of V OIS Inc. approved A rticles of Amendment to its Articles of Incorporation changing the par value of V O IS ' common s tock from $0. 001 per s hare to $0. 00001 per s hare. P urs uant to the provis ions of the F lorida B us ines s C orporations Act no s hareholder cons ent was required for this action. Wizzard S oftware C orporation W izz ard S oftware C orporation has filed a S helf W iz zard S oftware C orporation has filed a S helf R egis tration in the amount of $0. 82 million. (AME X: WZE ) R egis tration in the amount of $0. 82 million. Tree.C om, Inc . (Nas daqG M:TR E E ) T ree. C om Inc. A nnounces Unaudited C ons olidated T ree. C om Inc. announced unaudited cons olidated financial res ults for the third quarter and nine months ended S eptember F inancial R es ults for the T hird Q uarter and Nine Months 30, 2009. F or the quarter, the company reported total revenue of $50, 716, 000, opera ting los s of $7, 442, 000, los s before E nded S eptember 30, 2009 income taxes of $7, 582, 000, net los s of $7, 400, 000 or $0. 68 per diluted s hare agains t total revenue of $50, 258, 000, operating los s of $22, 455, 000, los s before income taxes of $22, 624, 000, net los s of $22, 551, 000 or $2. 41 per diluted s hare a year ago. Adjus ted E B IT DA was a los s of $3. 5 million, which was a $4. 8 million improvement year-over-year, from the third quarter 2008 adjus ted E B IT DA los s of $8. 3 million. Unis erve C ommunic ations C orp. U nis erve C ommunications C orp. Announces Unis erve C ommunications C orp. announced cons olidated unaudited earnings res ults for the firs t quarter ended A ugus t 31, (TS XV: US S ) C ons olidated Unaudited E arnings R es ults for the F irs t 2009. F or the quarter, the company reported revenues of C A D 3, 986, 059 compared to C AD 5, 138, 741 for the s ame period Q uarter E nded Augus t 31, 2009 a year ago. O perating income was C AD compared to opera ting los s of C AD 265, 134 for the s ame period a year ago. L os s before income taxes from continuing was C AD 213, 649 compared to C A D 1, 421, 510 for the s ame period a year ago. Net los s and comprehens ive los s for the period from continuing operations was C A D 238, 058 or C AD or C AD per s hare per s hare compared to C AD 1, 354, 310 or C AD 0. 06 per s hare for the s ame period a year ago. Net los s and comprehens ive los s for the period was C A D 238, 058 or C AD 0. 01 per s hare compared to C AD 1, 960, 037 or C AD 0. 08 per s hare for the s ame period a year ago. Net cas h provided by operating activities was C AD 102, 980 compared to C AD 825, 239 for the s ame period a year ago. P urchas e of property and equipment was C AD 49, 073 compared to C AD 46, 381 for the s ame period a year ago. P erfec t World C o., L td. P erfect W orld C o. , L td. Announces B oard C hanges P erfect W orld C o. , L td. announced the appointment of Mr. Daniel Dong Y ang as an independent director to the company's (Nas daqG S : P WR D) B oard of Directors . Mr. Daniel Dong Y ong has been a partner of S A IF P artners , s ince 2004 and s erved as a director from 2001 to 2004. He currently s erves as a director of s everal companies , s uch as MainOne Information T echnology C o. , L td. and Mobi Antenna T echnologies (S henz hen) C o. , L td. T he company als o announced that Mr. L ouis T . Hs ieh recently s tepped down from his pos ition as a member of the B oard of Directors of the company. United Online Inc . (Nas daqGS :UNTD) U nited O nline Declares Q uarterly Dividend P ayable on United O nline Inc. announced that its B oard of Directors has declared a quarterly cas h dividend of $0. 10 per s hare. T he November 30, 2009 dividend is payable on November 30, 2009 to s hareholders of record on November 13, 2009. Figure 7c. Key Developments – continued Source. Capital IQ
    • Page 11 VALUATION Online Gaming companies lead market-cap charts: Fourteen 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 38 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$33.5 billion. Market C ap (US D m) Tencent Holdings L td. 33542.7 Netea s e. com Inc. 4878. 1 S handa Interactive Entertainment L td. 3039. 9 Modern Times Group Mtg A B 2906. 3 Gree, Inc. 2548. 3 IA C/InterA ctiveCorp. 2510. 1 Perfect World Co., L td. 2178. 9 Open Tex t Corp. 2082. 2 S ohu. com Inc. 2072. 7 Changy ou. com L imited 1669. 3 G iant Interactive Group, Inc . 1644. 0 Mix i, Inc. 1345. 8 Chines e G amer Interna tional 1104. 8 K ings oft Co. L td. 1058. 1 V alueClic k Inc . 802. 7 NEOWIZ G ames Corporation 681. 9 United Online Inc. 659. 0 S hutterfly , Inc . 365. 3 NetDragon WebS oft, Inc. 326. 7 GungHo Online Entertainment, Inc. 271. 0 XING A G 269. 3 CDC Corp. 249. 1 S K Communica tions Co., L td. 247. 4 OA O R B C Information S y s tems 222. 0 GigaMedia L td. 217. 0 Gamania Digital Enterta inment Co., 209. 8 My riad Group A G 209. 7 The9 L imited 196. 2 Openw ave S y s tems Inc. 172. 0 DA DA S pA 167. 7 A c toz S oft Co., L td. 105. 2 GameOn Co L td. 92. 1 Tree.Com, Inc. 87. 7 Fluid Mus ic Canada, Inc. 86. 4 Y D Online Corp. 85. 6 Cy berplex Inc. 83. 6 TheS treet. com, Inc. 73. 8 Frogs ter Interactive Pic tures A G 71. 5 NeuLion Incorporated 71. 1 GeoS entric Oy j 65. 8 HanbitS oft, Inc. 62. 8 S park Netw orks , Inc . 59. 3 PNI Digita l Media Inc. 56. 6 Gra vity Co. , Ltd 43. 6 NeXplore Corporation 41. 8 DXN Holdings B hd 41. 6 Ngi G roup Inc. 38. 2 Webz en Inc. 35. 9 Eolith Co. L td. 32. 2 A Q Interac tiv e, Inc. 28. 5 Digita lTow n, Inc. 27. 6 S oc ialw is e, Inc. 22. 1 LookS mart, L td. 22. 1 Wiz z ard S oftw are Corporation 21. 7 Dolphin Digital Media, Inc. 21. 5 Northgate Technologies L imited 21. 3 Ex tens ions , Inc. 17. 8 Y nk K orea Inc. 17. 4 A cceleriz e New Media, Inc. 15. 4 Quepas a Corp. 15. 3 J umbuc k Entertainment L imited 14. 5 Lingo Media Corporation 10. 9 IA S Energy , Inc . 8.5 MOK O. mobi L imited 8.3 S pectrumDNA , Inc . 7.3 is eemedia Inc. 6.8 UOMO Media, Inc 6.6 B right Things plc 5.9 CornerWorld Corporation 5.7 Magnitude Information S y s tems Inc. 5.4 Worlds . com Inc . 5.2 B ey ond Commerc e, Inc. 4.2 DigitalPos t Interac tiv e, Inc. 3.9 V OIS , Inc. 3.3 B roa dWebA s ia Inc. 2.5 S NA P Interac tiv e, Inc. 2.3 B igs tring Corp. 2.0 Wy nds torm Corporation 1.8 LiveWorld Inc. 1.2 Unis erve Communications Corp. 1.1 B etaw ave Corporation 0.9 CLICK ER Inc. 0.7 K A B Dis tribution Inc . 0.6 A s s ociated Media Holdings Inc . 0.4 The Parent Compa ny 0.2 China G atew ay Corporation 0.0 S NM G lobal Holdings 0.0 Dibz Internationa l, Inc. 0.0 S oc ial 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 12 TEV/Revenue (LTM) averages 5.3x: The overall average TEV/Revenue (LTM) multiple for our group is 5.3x (vs. 6.1x last week) (Figure 9). As the past week saw broad-based share price decline, we now see four companies (vs. five last week) trading above 25x revenue – Bigstring Corp. (OTCBB:BSGC) at 49.2x, Dolphin Digital Media, Inc. (OTCBB:DPDM) at 38.6x, NexPlore Corporation (OTCPK:NXPC) at 27.0x, and Tencent Holdings Ltd. (SEHK:700) at 26.6x. The median of 1.7x is below last week’s 1.9x multiple. Note that we exclude multiples greater than 50x. Thirty-two companies have multiples under 1.5x. T E V/L T M R evenue (x) 60. 0 49.2 50. 0 38.6 40. 0 30. 0 27.0 26.6 20. 0 16.8 15.3 15.6 12.112.6 10.6 8.3 8.9 9.0 10. 0 A verage, 5.3 7.3 7.6 5.3 5.9 3.7 3.7 4.3 4.54.6 2.6 2.6 2.8 3.1 3.2 3.3 1.1 1.1 1.2 1.3 1.3 1.4 1.6 1.7 2.0 2.0 2.2 2.4 0.0 0.0 0.0 0.1 0.1 0.2 0.2 0.2 0.2 0.3 0.3 0.4 0.4 0.5 0.6 0.7 0.7 0.7 0.7 0.7 0.8 0.8 0.9 0.9 1.0 1.1 0. 0 N E O WIZ G ames C orporation J umbuc k E nterta inment L imited MO K O .mobi L imited UO MO Media, Inc C LIC K E R Inc. G a mania Digital E ntertainment C o., Ltd. G 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 ommerc e, Inc. S K C ommunica tions C o., Ltd. DigitalP os t Intera ctive, Inc. F luid Mus ic C a nada , Inc. Dolphin Digital Media, Inc. T he P a rent C ompany Modern T imes G roup Mtg AB G eoS entric O y j S N M G loba l Holdings NeuLion Inc orporated C ornerWorld C orporation Lingo Media C orporation NeX plore C orporation T heS treet.com, Inc . S NAP Intera ctive, Inc. United O nline Inc . O pen T ex t C orp. 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. S ohu.com Inc . is eemedia Inc . F rogs ter Intera ctiv e P ictures AG Mix i, Inc . As s ociated Media Holdings Inc . G ree, Inc . T encent Holdings Ltd. XIN G 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 ocial 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 12.6x (vs. 16.3x last week). On a geographic basis, the United States has the most companies (38), trading at an average of 6.9x revenue (vs. 8.7x 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 14.0 12.6 14.0 12.1 12.0 12.0 12.1 12.1 10.0 10.0 8.0 9.0 8.0 7.5 (x) (x) 6.9 6.0 6.5 6.3 6.0 6.3 5.6 6.2 5.6 5.5 5.5 5.4 4.0 3.7 3.3 4.0 4.1 2.7 2.0 1.7 1.7 3.3 2.0 1.6 0.9 0.7 2.0 1.7 1.7 0.9 0.7 0.3 0.3 0.7 0.3 0.0 0.0 0.00.0 0.0 0.0 0.0 0.0 OTCPK OTCBB Grand Total GTSM NasdaqGM HLSE SEHK TSE OSE KOSE NasdaqGS RTS Germany OM CM Finland China United Japan Canada Malaysia Hong Kong India Russia United TSX XTRA AMEX KLSE BSE NYSE Italy AIM South TSXV SWX Taiwan Australia ASX Switzerland Sweden # Companies 18 1 3 2 11 4 5 2 2 4 1 2 1 1 6 14 1 1 5 1 1 1 1 # Companies 1 10 38 3 2 2 6 10 1 1 8 1 1 1 1 1 1 88 Figures 10 & 11. TEV/Revenue Ranking (Exchange, Country) Source. Capital IQ
    • Page 13 TEV/EBITDA (LTM) averages 10.6x: The average multiple for the 35 companies with positive EBITDA (and multiples under 100x) is 10.6x LTM EBITDA (vs. 11.8x last week), led by HanbitSoft, Inc. (KOSE:A047080) 34.8x multiple (Figure 12). Twenty-one companies have EBITDA multiples under 7x. The median multiple is 8.6x (vs. 9.9x last week). T E V/L T M E B IT DA (x) 40. 0 34. 8 35. 0 29. 8 30. 0 25. 9 26. 5 25. 0 23. 6 19. 7 20. 0 17. 2 15. 0 13. 2 11. 9 12. 1 12. 2 12. 8 A verage, 10.6 8. 9 9. 0 9. 7 10. 2 10. 5 10. 0 8. 6 7. 0 7. 0 7. 4 7. 6 6. 6 6. 8 4. 5 4. 7 4. 9 5. 1 5. 3 5. 0 2. 8 0. 7 0. 9 1. 1 1. 2 0. 4 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 . T heS treet. c om, Inc . O pen T ex t C orp. V alueC lic k Inc . S park Network s , Inc . C yberplex Inc. NetDragon WebS oft, Inc. S ohu. c om Inc . Y D O nline C orp. IAC /InterAc tiveC orp. G ree, Inc . Mix i, Inc . XING AG P erfec t World C o. , L td. O penwave S y s tems Inc. Y nk K orea 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 0.7x. On a geographic basis, the United States has the most companies (38), trading at an average of 6.8x EBITDA (Figure 14). Ten of the companies are Canadian (average 13.5x EBITDA). Average TEV/LTM EBITDA - By Exchange Average TEV/LTM EBITDA - By Country 25.0 23.6 20.0 18.0 18.6 20.0 16.0 18.617.8 14.0 15.6 15.0 15.6 15.6 12.0 13.5 13.5 (x) 13.5 12.2 (x) 10.0 12.2 12.1 10.0 9.7 8.9 8.0 8.2 6.8 6.8 6.6 8.0 5.0 5.3 5.1 4.7 6.0 6.8 1.1 5.1 0.7 0.4 4.0 0.0 2.0 0.4 OTCBB GTSM NasdaqGM 1.1 TSE KOSE SEHK OSE NasdaqGS RTS OM CM XTRA TSX AMEX KLSE TSXV ASX 0.0 0.0 Germany Japan Canada Hong Kong China United Malaysia Russia Italy South Korea States Taiwan Australia Sweden Switzerland # Companies 4 2 5 6 2 1 3 1 14 1 4 2 1 5 2 18 1 # Companies 3 8 6 2 10 1 1 10 1 38 1 2 1 1 Figures 13 & 14. TEV/EBITDA Ranking (Exchange, Country) Source. Capital IQ
    • Page 14 P/E (LTM) averages 18.8x: The average multiple for the 33 companies with positive earnings (and multiples under 100x) is 18.8x LTM EPS (vs. 19.0x last week), led by Tencent Holdings Ltd. (SEHK:700) with a 68.5x multiple (Figure 15). Fourteen companies have P/E multiples under 10x. The median is 11.3x. P /E L T M (x) 80.0 68.5 70.0 65.4 58.6 60.0 54.0 50.0 45.4 39.2 40.0 35.5 30.0 27.7 A verage, 18.8 20.0 21.1 18.0 20.0 14.9 15.6 16.2 13.3 11.2 11.3 12.3 9.1 9.2 10.7 10.0 6.9 7.5 8.6 4.0 4.1 2.0 2.2 2.2 2.8 3.0 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 12.0x. On a geographic basis, the United States has the most companies (38), trading at an average of 12.7x earnings (Figure 17). Ten of the companies are Canadian (average 26.5x EPS). Average P/E - By Country Average P/E - By Exchange 50.0 46.8 70.0 45.0 58.6 40.0 60.0 35.0 50.0 30.0 42.9 28.9 26.5 (x) 40.0 34.3 25.0 21.9 (x) 28.9 30.0 28.6 20.0 15.6 13.9 18.0 16.2 15.0 12.7 12.0 20.0 15.6 12.0 6.9 10.9 7.5 10.0 4.1 6.9 10.0 4.1 5.0 0.0 2.0 0.0 0.0 0.0 0.0 Germany Japan Canada China United Malaysia Italy South Korea OTCBB GTSM NasdaqGM States Taiwan Australia OSE TSE SEHK KOSE NasdaqGS OM Sweden Switzerland XTRA AMEX TSX KLSE NYSE ASX # Companies 1 5 3 2 2 6 2 1 18 14 4 1 2 1 5 # Companies 6 2 10 3 1 10 38 8 1 2 1 1 Figures 16 & 17. P/E Ranking (Exchange, Country) Source. Capital IQ
    • Page 15 UPCOMING EVENTS E arnings C alendar C ompany Date Time Quarter C onf C all Details United Online Inc. (NasdaqGS:UNTD) Nov-04-2009 5:30 p.m. EST Q3/09 877-718-5098 Spark Networks, Inc. (AMEX:LOV) Nov-05-2009 4:30 p.m. EST Q3/09 800-723-6604 Cyberplex Inc. (TSX:CX) Nov-10-2009 4:30 p.m. EST Q3/09 888-892-3255 Figure 18. Earnings Calendar Source. Company reports
    • Page 16 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 0. 0% -8.3% -1.8% 25.0% 37.5% -20.3% A ctoz S oft C o. , L td. KR W A052790 K OS E 105.2 14, 500 -11.0% -19.4% -39.8% 0. 7% 52.6% -59.7% A Q Interactive, Inc. JPY 3838 TS E 28.5 46, 800 -3.3% -6.3% -21.7% -0.3% 5.1% -43.6% A s s ociated Media H oldings Inc. US D AS MH OT C P K 0.4 0.01 0. 0% -35.7% -35.7% 500.0% 200. 0% -55.0% B igs tring C orp. US D BSGC OT C B B 2.0 0.03 -10.5% -5.6% 30.8% 36.0% 36.0% -40.4% B eta wave C orpora tion US D B W AV OT C B B 0.9 0.03 -20.0% -60.0% -54.3% -75.4% -85. 5% -89.0% B eyond C ommerce, Inc. US D B Y OC OT C B B 4.2 0.08 -25.5% -39.3% -77.2% -94.1% -95. 7% -95.8% B right T hings plc GB P AIM:B G T A IM 5.9 0.01 10.0% 0.0% -15.6% -31.3% 12.2% -44.3% B roadW ebA s ia Inc. US D BWBA OT C P K 2.5 0.03 0. 0% -87.0% -87.0% -91.4% -97. 8% -99.0% C DC C orp. US D C H IN.A Nas da qG S 249.1 2.35 -4.9% -4.9% -24.7% 52.6% 104. 3% -40.1% C ha ngyou.com Limited US D C Y OU Nas da qG S 1, 669.3 30.35 -6.0% -6.7% -19.7% -6.3% NM -37.3% 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, 104.8 426.00 -0.5% -9.4% 3.8% 91.0% 407. 1% -17.9% C LIC K E R Inc. US D CLK Z OT C B B 0.7 0.01 6. 3% -22.7% 23.2% 88.9% -97. 9% -97.9% 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 83.6 1.39 0. 0% 6.9% -14.7% -18.7% 247. 5% -30.2% DADA S pA E UR C M:DA CM 167.7 7.07 -5.4% 4.8% 15.8% 5. 4% -4.5% -13.7% DXN Holdings B hd MY R DXN K LS E 41.6 0.64 1. 6% 5.8% 58.8% 54.9% 86.8% -8.0% 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 3.9 0.05 -9.1% -10.7% 4.2% 212.5% 42.9% -49.5% DigitalT own, Inc. US D DG T W OT C B B 27.6 1.01 -49.5% -49.5% -32.7% -59.6% -59. 6% -71.1% Dolphin Digital Media, Inc. US D DP DM OT C B B 21.5 0.40 -18.4% 0.0% -4.8% -29.8% -54. 0% -57.9% E olith C o. L td. KR W A041060 K OS E 32.2 530.00 -7.8% -27.4% -35.4% -42.1% -3.6% -54.3% E xtens ions , Inc. US D E XT I OT C P K 17.8 0.40 60.0% 100.0% 100.0% 166.7% 300. 0% -60.4% F luid Mus ic C anada, Inc. C AD T S X: F MN TS X 86.4 1.79 -0.6% 27.9% 88.4% 225.5% 411. 4% -16.7% F rogs ter Intera ctive P ictures AG E UR FR G XT R A 71.5 19.05 -4.3% 6.5% 43.2% 124.1% 349. 3% -11.4% G amania Digita l E ntertainment C o., L td. TWD 6180 GTS M 209.8 44.80 -8.3% -6.4% -24.5% 28.0% 213. 3% -34.9% G ameO n C o L td. JPY 3812 TS E 92.1 85, 200 -3.6% -3.8% -20.8% -11.8% -15. 6% -43.9% G eoS entric Oyj E UR G E O1V H LS E 65.8 0.05 0. 0% 0.0% 25.0% 25.0% 25.0% -16.7% G ia nt Interactive G roup, Inc. US D GA NY S E 1, 644.0 7.26 -4.0% 10.2% -13.6% -14.6% 8.8% -24.1% G igaMedia L td. US D G IG M Nas da qG S 217.0 3.98 -11.9% -15.0% -23.0% -40.6% -31. 4% -48.5% G ra vity C o., Ltd US D GR VY Nas da qG M 43.6 1.57 -3.1% -11.8% -6.5% 60.2% 106. 6% -40.3% G ree, Inc. JPY T S E :3632 TS E 2, 548.3 5, 090 1. 0% 12.9% 30.7% 84.4% NM -4.9% G ungH o Online E ntertainment, Inc. JPY 3765 OS E 271.0 211, 500 -4.3% -10.2% 0.5% 53.6% 101. 6% -24.4% H anbitS oft, Inc. KR W A047080 K OS E 62.8 3, 420 -3.9% -17.8% -23.0% -24.3% 18.5% -48.5% IAC /InterA ctiveC orp. US D IA C I Nas da qG S 2, 510.1 19.02 -1.7% -0.8% 3.8% 19.1% 14.3% -10.6% IAS E nergy, Inc. US D IA S A. E OT C B B 8.5 0.12 14.3% 0.0% -33.3% -53.8% 33.3% -57.1% is eemedia Inc. C AD IE E T S XV 6.8 0.15 3. 6% 11.5% 107.1% 20.8% 20.8% -9.4% J umbuck E ntertainment Limited AU D AS X: J MB AS X 14.5 0.34 0. 0% -11.7% -10.5% -15.0% -20. 0% -32.0% 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% -99.4% K ings oft C o. L td. HK D 3888 S E HK 1, 058.1 7.51 0. 0% 8.7% -13.0% 98.2% 270. 0% -20.7% L ingo Media C orpora tion C AD T S XV :LM T S XV 10.9 0.95 -5.0% -9.5% -17.4% 8. 0% -20. 2% -34.9% L iveW orld Inc. US D LV W D OT C P K 1.2 0.04 -2.4% 14.3% 60.0% -33.3% -50. 0% -84.0% L ookS mart, L td. US D LO OK Nas da qG M 22.1 1.29 -1.5% 12.2% -4.0% -7.9% -26. 7% -29.9% Ma gnitude Information S ys tems Inc. US D MAG Y OT C B B 5.4 0.01 20.0% 33.3% 84.6% -7.7% 0.0% -60.0% Mixi, Inc. JPY 2121 TS E 1, 345.8 781,000.00 6. 0% 39.0% 15.9% 72.4% 9.8% -0.4% Modern T imes G roup Mtg AB SEK MT G B OM 2, 906.3 307.10 -5.7% 5.9% 11.9% 34.4% 61.2% -9.7% MO K O .mobi L imited AU D MK B AS X 8.3 0.09 13.9% 38.5% 38.5% 28.6% 125. 0% -10.0% Myriad G roup AG C HF MY R N S WX 209.7 4.89 8. 9% 6.8% 29.7% -5.0% -30. 1% -34.8% NE O W IZ G ames C orporation KR W A095660 K OS E 681.9 38,600.00 -4.7% -9.5% 14.0% 29.7% 432. 4% -14.0% NetDra gon W ebS oft, Inc. HK D 777 S E HK 326.7 4.79 -6.6% -5.0% -24.6% -11.3% 97.9% -33.0% Netea s e. com Inc. US D NT E S Nas da qG S 4, 878.1 37.69 0. 7% -14.2% -16.8% 17.7% 73.5% -22.3% NeuLion Incorpora ted C AD T S X: NL N TS X 71.1 0.70 -2.8% -30.0% -14.6% -6.7% 27.3% -46.2% NeXplore C orpora tion US D NXP C OT C P K 41.8 0.75 7. 1% 7.1% 7.1% 7. 1% -21. 1% -48.3% Ngi G roup Inc. JPY 2497 TS E 38.2 27,550.00 -9.1% 9.5% -16.9% -25.1% -63. 8% -68.3% Northgate T echnologies Limited INR 590057 BSE 21.3 29.30 -21.7% -32.0% -25.2% -26.4% -61. 4% -64.3% O pen T ext C orp. US D OT E X Nas da qG S 2, 082.2 36.93 -6.3% -0.5% -4.4% 19.6% 32.1% -10.9% O penwa ve S ys tems Inc. US D OP W V Nas da qG S 172.0 2.06 -24.0% -17.9% -20.2% 63.5% 178. 4% -34.2% P erfect W orld C o., Ltd. US D PWRD Nas da qG S 2, 178.9 43.24 -5.7% -3.8% 13.8% 125.6% 140. 4% -14.4% P NI Digital Media Inc. C AD T S XV :P N T S XV 56.6 1.80 6. 5% -6.2% 16.1% 16.1% -10. 0% -22.4% Q uepa s a C orp. US D QP S A OT C B B 15.3 1.20 -11.1% -20.0% 0.0% 23.7% -47. 8% -48.9% O AO R B C Information S ys tems US D R BCI R TS 222.0 1.60 0. 0% 6.7% 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, 039.9 45.20 -3.0% -6.0% -10.7% -10.5% 84.1% -30.5% S hutterfly, Inc. US D S F LY Nas da qG S 365.3 14.24 -3.3% -9.0% -6.0% 12.8% 100. 3% -21.5% S K C ommunications C o. , L td. KR W A066270 K OS E 247.4 7,050.00 -9.6% -20.3% -26.0% -25.0% 35.6% -45.1% S NA P Intera ctive, Inc. US D S TVI OT C B B 2.3 0.21 -40.0% -40.0% 5.0% -67.7% -47. 5% -80.6% S NM G loba l H oldings US D S NMN OT C P K 0.0 0.00 0. 0% 0.0% -70.0% -50.0% -99. 2% -99.3% S ocial Media V entures Inc. US D S MV I OT C P K 0.0 0.01 -22.0% -88.3% -96.9% 17.0% -99. 6% -99.8% S ocialwis e, Inc. US D S CLW OT C B B 22.1 0.50 -13.8% -18.0% -24.2% 2. 0% -73. 0% -75.0% S ohu.com Inc. US D S O HU Nas da qG S 2, 072.7 54.07 -9.8% -16.3% -14.0% -2.4% 4.4% -25.2% S pa rk Networks , Inc. US D LO V A ME X 59.3 2.88 12.5% 29.1% 16.6% 0. 3% -1.7% -8.6% S pectrumDNA, Inc. US D S P XA OT C B B 7.3 0.15 50.0% 15.4% 7.1% -40.0% -37. 5% -66.7% T encent H oldings Ltd. HK D 700 S E HK 33,542. 7 143 -3.8% 16.4% 29.7% 94.6% 175. 2% -5.9% T he P a rent C ompany US D K IDS . Q OT C P K 0.2 0.01 0. 0% -42.1% -30.0% -44.0% -99. 2% -99.3% T he9 L imited US D NC T Y Nas da qG S 196.2 7.82 -2.9% 3.1% -17.1% -17.3% -39. 8% -53.0% T heS treet.com, Inc. US D TS CM Nas da qG M 73.8 2.41 -13.3% -17.7% 16.4% 14.8% -33. 4% -40.8% T ree.C om, Inc. US D TR E E Nas da qG M 87.7 8.05 6. 5% 3.2% -16.0% -31.5% 259. 4% -38.4% 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 659.0 7.86 -9.4% 1.9% -13.1% 9. 2% 6.9% -16.9% U OMO Media, Inc US D UO MO OT C B B 6.6 0.08 -24.0% -37.2% -52.5% -49.3% -60. 0% -92.8% V alueC lick Inc. US D V CLK Nas da qG S 802.7 9.21 -27.5% -27.7% -20.8% -10.1% 43.2% -33.9% V OIS , Inc. US D V O IS OT C B B 3.3 0.00 -42.9% 0.0% -21.6% 25.0% -46. 7% -82.6% W ebzen Inc. US D W ZE N Nas da qG M 35.9 3.03 3. 8% 18.8% -9.8% 10.9% 203. 0% -35.3% W izzard S oftwa re C orporation US D W ZE A ME X 21.7 0.43 2. 4% -6.5% -12.2% -25.9% -46. 3% -75.1% W orlds .com Inc. US D W DDD OT C B B 5.2 0.10 0. 0% -16.7% -23.1% -54.5% -58. 3% -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 269.3 34.88 -4.2% -1.8% 26.3% 16.7% 44.4% -8.2% Y D Online C orp. KR W A052770 K OS E 85.6 6,810.00 -12.1% -20.9% -26.6% -22.5% 14.5% -45.1% Y nk K orea Inc. KR W A023770 K OS E 17.4 3,900.00 -9.3% 0.0% -22.3% -36.8% -33. 8% -55.2% H igh 60.0% 100.0% 107.1% 500.0% 432. 4% -0.4% L ow -86.7% -99.2% -99.2% -98.6% -99. 6% -99.8% Average 780.0 -4.9% -7.9% -5.7% 14.1% 35.8% -45.2% Media n -3.3% -5.3% -12.2% 0. 7% 6.7% -40.8% Figure 19. Price Performance Source. Capital IQ
    • Page 17 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 105.2 0.7x - 2. 8x - 14.9x - 1.6x AQ Intera ctive, Inc. G aming J apan TS E 3838 28.5 0.1x 0.1x - - - 8.4x 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 0.9 - - - - - - 0.2x B eyond C ommerce, Inc. S ocial Networking U nited S ta tes OTCB B B YOC 4.2 0.9x - - - - - - B right T hings plc S ocial Networking U nited K ingdom AIM AIM:B G T 5.9 - - - - - - - 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 249.1 0.7x 0.7x 9. 7x 6.8x - - 99.6x C hangyou.com Limited G aming C hina N as da qG S C Y OU 1,669.3 5.3x 4.4x 8. 6x 7.1x 11.3x 9.7x 8.7x 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 1,104.8 16.8x 15.7x 29.8x 25.6x 39.2x 23.4x 19.0x C L IC K E R Inc. Direct Marketing U nited S ta tes OTCB B C LK Z 0.7 0.3x - - - - - - 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 83.6 0.7x 0.6x 6. 6x 5.1x 7.5x 8.3x 3.3x DA DA S pA S ocial Networking Italy CM C M:DA 167.7 0.9x 0.8x 6. 8x 5.8x - 15.9x - DXN Holdings B hd S ocial Networking Mala ys ia K LS E DXN 41.6 0.7x - 5. 1x - 6.9x - 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 3.9 5.9x - - - - - - DigitalT own, Inc. S ocial Networking U nited S ta tes OTCB B DG T W 27.6 - - - - - - - Dolphin Digital Media, Inc. S ocial Networking U nited S ta tes OTCB B DP DM 21.5 38.6x 1.4x - - - 1.6x - E olith C o. L td. G aming S outh K orea K OS E A041060 32.2 2.2x - - - - - 2.9x E xtens ions , Inc. C ontent U nited S ta tes OTCP K E XT I 17.8 - - - - - - - F luid Mus ic C a nada, Inc. Media U nited S ta tes TS X T S X:F MN 86.4 15.3x 14.6x - - - - 8.1x F rogs ter Interactive P ictures A G G aming G erma ny XT R A FR G 71.5 7.3x - - - - - 8.8x G amania Digital E ntertainment C o., Ltd. G aming T a iwa n GTS M 6180 209.8 1.3x - 7. 4x - 18.0x - 2.7x G ameO n C o Ltd. G aming J apan TS E 3812 92.1 0.2x - 0. 9x - 9.2x - 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 1,644.0 - - - - 2.0x 15.2x 0.3x G igaMedia Ltd. G aming T a iwa n N as da qG S G IG M 217.0 0.8x 0.7x - 3.7x 8.6x 8.0x 1.8x G ravity C o., Ltd G aming S outh K orea N as da qG M GR VY 43.6 - - - - 0.0x - 0.0x G ree, Inc. S ocial Networking J apan TS E T S E : 3632 2,548.3 15.6x 6.8x 25.9x 12.4x 54.0x 24.6x 25.0x G ungH o O nline E nterta inment, Inc. Media J apan OS E 3765 271.0 2.0x - 8. 9x - 58.6x - 20.2x Ha nbitS oft, Inc. G aming S outh K orea K OS E A047080 62.8 0.8x - 34.8x - 11.2x - 1.8x IAC /InterActiveC orp. Media U nited S ta tes N as da qG S IAC I 2,510.1 0.6x 0.6x 10.5x 4.8x 10.7x 32.8x 1.2x IAS E nergy, Inc. V ideo C ana da OTCB B IAS A.E 8.5 - - - - - - - is eemedia Inc. C ontent C ana da T S XV IE E 6.8 3.7x - - - - - 5.6x 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 11.9x 21.1x 15.9x 5.9x Lingo Media C orpora tion L earning C ana da T S XV T S XV : LM 10.9 8.3x - - - - - 19.5x LiveW orld Inc. S ocial Networking U nited S ta tes OTCP K LV W D 1.2 0.0x - - - - - 0.5x LookS ma rt, L td. Direct Marketing U nited S ta tes N as da qG M L OOK 22.1 - - - - - - 0.8x Magnitude Information S ys tems Inc. S ocial Networking U nited S ta tes OTCB B MA G Y 5.4 - - - - - - - Mixi, Inc. S ocial Networking J apan TS E 2121 1,345.8 9.0x 7.7x 26.5x 24.5x 65.4x 57.0x 8.9x Modern T imes G roup Mtg AB Media S weden OM MT G B 2,906.3 1.7x 1.7x 12.2x 11.9x 15.6x 15.1x - MOK O .mobi Limited S ocial Networking Aus tra lia AS X MK B 8.3 10.6x - - - - - 8.5x Myriad G roup AG Mobile S witzerla nd SWX MY R N 209.7 3.3x - - - - - - NE OW IZ G ames C orporation G aming S outh K orea K OS E A095660 681.9 3.2x - 12.1x - 35.5x - 17.9x NetDra gon W ebS oft, Inc. G aming C hina S E HK 777 326.7 2.0x 1.4x 7. 0x 3.8x 13.3x 10.6x 1.7x Netea s e.com Inc. G aming C hina N as da qG S NT E S 4,878.1 - - - - 2.8x 15.1x 0.8x NeuLion Incorporated V ideo C ana da TS X T S X:NL N 71.1 2.8x - - - - - 5.4x NeXplore C orporation C ontent U nited S ta tes OTCP K NXP C 41.8 27.0x - - - - - - Ngi G roup Inc. Media J apan TS E 2497 38.2 - - - - - - 0.7x Northgate T echnologies Limited Direct Marketing India BS E 590057 21.3 0.3x - - - - 1.2x - O pen T ext C orp. C ollabora tion C ana da N as da qG S OT E X 2,082.2 2.6x 2.3x 10.2x 8.6x 45.4x 13.1x - O penwave S ys tems Inc. Mobile U nited S ta tes N as da qG S OP W V 172.0 0.4x 0.4x 11.9x 4.0x - 51.5x 2.4x P erfect W orld C o., Ltd. G aming C hina N as da qG S PWRD 2,178.9 0.7x 3.4x 1. 2x 6.4x 3.0x 13.7x 1.4x P N I Digital Media Inc. Digita l Ima ging C ana da T S XV T S XV :P N 56.6 2.6x 2.2x 23.6x 7.1x - 14.4x 19.8x Q uepa s a C orp. S ocial Networking U nited S ta tes OTCB B QP S A 15.3 - - - - - - - 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 3,039.9 - - - - 2.2x 12.4x 0.8x S hutterfly, Inc. Digita l Ima ging U nited S ta tes N as da qG S S FLY 365.3 1.1x 1.1x 9. 0x 5.6x - - 2.2x S K C ommunications C o., Ltd. S earch S outh K orea K OS E A066270 247.4 1.3x - 19.7x - - - - S N AP Interactive, Inc. Dating U nited S ta tes OTCB B S TVI 2.3 0.2x - 0. 7x - 4.0x - 1.3x 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 22.1 - - - - - - - S ohu.com Inc. G aming C hina N as da qG S S O HU 2,072.7 3.1x 2.7x 7. 0x 6.1x 12.3x 14.5x 3.8x S park N etworks , Inc. S ocial Networking U nited S ta tes AME X L OV 59.3 1.1x - 5. 3x - 16.2x - 60.6x S pectrumDN A, Inc. Media U nited S ta tes OTCB B S P XA 7.3 - - - - - - 72.8x T encent Holdings Ltd. P orta l C hina S E HK 700 33,542.7 26.6x 20.2x - 48.3x 68.5x 56.5x 30.5x 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 196.2 - - - - 2.2x - 0.1x T heS treet.com, Inc. Media U nited S ta tes N as da qG M TS CM 73.8 0.1x 0.2x 4. 7x - - - 1.0x T ree.C om, Inc. P orta l U nited S ta tes N as da qG M TREE 87.7 0.4x 0.4x - 8.4x - 51.8x 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 659.0 1.0x 1.0x 4. 5x 3.9x - 6.0x - UO MO Media, Inc Media C ana da OTCB B UO MO 6.6 8.9x - - - - - - V a lueC lick Inc. Media U nited S ta tes N as da qG S V CLK 802.7 1.2x - 4. 9x 4.9x - - 4.2x V O IS , Inc. S ocial Networking U nited S ta tes OTCB B V OIS 3.3 - - - - - - 21.1x W ebzen Inc. G aming S outh K orea N as da qG M W ZE N 35.9 - - - - 0.0x - 0.0x W izzard S oftware C orporation P odca s ting U nited S ta tes AME X W ZE 21.7 4.3x - - - - - - 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 269.3 3.7x 2.8x 12.8x 8.0x 27.7x 16.6x 8.6x Y D Online C orp. G aming S outh K orea K OS E A052770 85.6 1.6x 1.2x 7. 6x 4.2x 9.1x - 2.8x Y nk K orea Inc. G aming S outh K orea K OS E A023770 17.4 1.4x - 13.2x - - - 0.8x High 33,542.7 49.2x 20.2x 34.8x 48.3x 68.5x 57.0x 99.6x Low 0.0 0.0x 0.1x 0. 4x 1.2x 0.0x 1.2x 0.0x Average 780.0 5.3x 3.4x 10.6x 9.6x 18.8x 18.7x 10.6x Median 41.8 1.7x 1.3x 8. 6x 6.4x 11.3x 14.5x 2.5x Figure 20. Valuation Comparison Source. Capital IQ
    • Page 18 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 19 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 S canS cout US A 8.5 8.5 B ox.net US A 7.1 7.1 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 Onehub US A 1.3 1.3 DataS ync US A 1.2 1.2 DailyB ooth US A 1. 0 1.0 Hot Potato US A 1.0 1.0 L inkedex UK 1. 0 1.0 S tatus Net C ana da 0. 9 0.9 IngB oo US A 0. 8 0.8 C hango C ana da 0.7 0.7 L is tia US A 0. 4 0.4 Oct-09 Total 4.0 40.9 56.5 67.4 2.0 170.8 Nov-09 C ubeTree US A 8.0 8.0 S coopler US A 0. 5 0.5 Nov-09 Total 0.5 8.0 8.5 G rand Total 31.0 2.0 69.3 194.3 138.8 88.3 110.0 633.7 Figure 23. Financing, Last Three Months Source. Company reports
    • Page 20 C ompany Des c riptions - C urrent Month C apital Market Ac tivity C ompany HQ Webs ite Des cription Amie S treet United S ta tes www. amies treet. com Amie S treet, Inc. , a W eb bas ed s ocial mus ic s tore, enables members to dis cover, download, and s hare mus ic. T he company wa s founded in 2006 and is bas ed in Long Is land C ity, New Y ork. Aurora F eint United S ta tes www. aurorafeint.com Aurora F eint, Inc. offers gaming platform for iphone. T he company is bas ed in B urlingame, C alifornia. Aviary United S ta tes www. avia ry. com Aviary is a collaborative creative s uite for artis ts of a ll genres . Ava ilable both on and offline, via Adobe’s F lex a nd Air technologies res pectively, Aviary 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, a rtis ts can crea te and collaborate us ing the compa ny's free and light s oftwa re. B ox.net United S ta tes www. box. net B ox. net, Inc. provides online file s torage, s haring, and collaboration s ervices to regis tered us ers in the United S tates and internationally. It offers file s haring, mobile a cces s , and document editing s ervices to bus ines s es , s chools , a nd other orga niza tions . B ox.net, Inc. was founded in 2005 and is bas ed in P alo Alto, C a lifornia . C hango C a nada www. chango.com C hango Inc. provides online advertis ing s olution. T he company provides keyword targeted P P C ca mpaigns and S ea rch 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 ta tes www. dailybooth. 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. dailymotion. com Dailymotion S AR 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 haring s ervices . T he company a ls o ena bles s ha ring of official and profes s iona l contents . Dailymotion S AR L was founded in 2005 and is bas ed in P aris , F rance. DataS ync United S ta tes www. datas yncs uite. com DataS ync C orporation develops open s ource cons olidation s oftware. T he company develops DataS ync S uite, a s oftware pla tform that integrates core applications into an open s ource s oftware-a s -a-s ervice web porta l. Data S ync C orporation wa s founded in 2005 and is bas ed in S ioux F a lls , S outh Dakota. E cas t Network United S ta tes www. ecas tinc. com E cas t, Inc. operates a broa dband touch s creen media network in the United S tates . T he company’s network delivers digital mus ic, games , entertainment, information, and advertis ing to bars and nightclubs . Its platform als o delivers on-demand content, including videos and s urveys ; s upports third-party a pplica tions ; and a llows 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 ba s ed in S an F rancis co, C alifornia. E ngine Yard United S ta tes www. engineyard. com E ngine Y a rd, Inc. provides managed hos ting a nd deployment s olutions for R uby and R ails applications . 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 a pplica tions on-dema nd. E ngine Y ard, Inc. was founded in 2006 and is bas ed in S a n F ra ncis co, C alifornia with additiona l locations in the United S tates , C anada, E urope, Is ra el, the P hilippines , Aus tralia, and New Zealand. F eedR oom United S ta tes www. feedroom. com T he F eedR oom, Inc. provides W eb video s olutions and technology for corporations , media/publis hing organiz ations , and government a gencies . It offers broadband video dis tribution for W eb, s ea rch engines , and podcas ting; broadband video encoding, ma nagement, and delivery; performance reporting; broadband video application des ign and development; media advertis ing s ervices ; s ubs cription a nd regis tration tools ; email video a lert delivery a nd tracking; a nd original content development and production. T he company wa s 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. opera tes as a s ubs idiary of K IT digital, Inc. F izzbac k UK www2. fizz back. com T he F izz back G roup Limited provides an on-demand s olution that drives cus tomer engagement at the point-of-experience. Its s olution helps companies to lis ten, res pond, and act in real-time to their cus tomers ' comments . T he F izz back G roup was formerly known as Ins tant Market Intelligence Limited a nd changed its name to T he F iz zba ck G roup Limited in J a nuary 2007. T he company was founded in 2004 and is bas ed in London, the United K ingdom. G odengo United S ta tes www. godengo. com G odengo, Inc. des igns online publis hing and advertis ing platform for magazine publis hers . T he company provides technology to build, manage, and dis tribute media content online. G odengo, Inc. was incorpora ted in 2004 and is ba s ed in E meryville, C alifornia. Figure 24a. Company Descriptions Source. Company reports, Capital IQ, Crunchbase
    • Page 21 C ompany Des c riptions - C urrent Month C apital Market Ac tivity C ompany HQ Webs ite Des cription Hot Potato United S ta tes www, hotpotato. com Hot P otato offers internet bas ed s ocial networking s ervices . T he company wa s founded in 2009 and is bas ed in B rooklyn, New Y ork. HubS pot United S ta tes www. hubs pot. com HubS pot, Inc. offers B 2B inbound ma rketing s oftwa re. Its products include HubS pot Owner, which generates qualified leads and convert leads into s ales ; and HubS pot Marketer that offers inbound mark eting tools . T he company als o provides s earch engine optimiz ation, bus ines s blogging, competitor analys is , clos ed-loop marketing analytics , W ebs ite editor, lea d tracking a nd intelligence, lead gra der, landing page wiz ard, marketing intelligence, s ocial media, and inbound ma rketing s olutions . HubS pot, Inc. was founded in 2006 and is bas ed in C ambridge, Mas s a chus etts . Ingboo United S ta tes www. ingboo. com Ingboo Inc. operates as an online marketplace for information upda tes to cons umers . It offers an Internet retrieval utility that allows to track information, s uch as W ebs ites , job and apartment lis tings , eB ay auctions , C raig's lis t pos ts , news , weather, traffic, s ports s cores , R S S feeds , twitter updates , celebrity gos s ips , and Y ouT ube videos . T he company a ls o drives traffic to W eb publis hers , bloggers , and retailers . It enables to a cces s through s martphones and e-mails . T he company was founded in 2007 a nd is bas ed in S unnyvale, C alifornia. J ive S oftware United S ta tes www. jives oftware. com J ive S oftware, Inc. develops , markets , and s ells s ocial productivity a nd community s oftware s olutions for enterpris es in the United S tates a nd interna tionally. Its products include C lears pace, an enterpris e collaboration s oftware, which applies a people-centric approa ch to facilitate work force networking and collaboration applications ; C lea rs pace C ommunity, an enterpris e-clas s community s oftware that is us ed to build la rge online communities , a s well as to engage cus tomers , and build brands a nd marketing initiatives ; and C lea rs tep, an online community s olution for s ocial and enterpris e 2. 0 profes s ionals . T he company als o offers s trategic a nd technical cons ulting s ervices . T he company was founded in 2001 and is bas ed in P ortland, Oregon. L inkedex UK NA B as ed in London and S an F rancis co, Linkedex aims to help companies a nalys e the proces s by which s earch engines deliver their res ults a nd achieve higher rankings in na tural (non-pa id-for) s earch for their brands a nd s ervices . L is tia United S ta tes www. lis tia. com L is 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 auction is the pers on who wanted it the mos t. Us ers get credits in three ways : every us er gets a certa in number automa tically, and you can get more by auctioning items , by referring friends , and by buying them. T he company is bas ed in S unnyvale, C alifornia. Onehub United S ta tes onehub. com O nehub Inc. provides a W eb application that enables companies to build extra nets for uploading, acces s ing, a nd s haring files and folders with partners , cus tomers , coworkers , and s uppliers . T he company s erves mark eting, advertis ing, graphic des ign, and cons ulting s ervices indus tries in the United S tates and internationally. O nehub Inc. was founded in 2007 and is ba s ed in B ellevue, W as hington. Ooyala United S ta tes www. ooya la. com O oya la is a video technology company that provides indus try-leading s olutions for managing, dis tributing and monetiz ing high-quality video online. F ounded by former G oogle engineers in April 2007, Ooyala takes a novel approach at delivering video, ta rgeting 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 , AOL/B ebo, National G eogra phic, T V G uide a nd the G lam network. T he company is bas ed in Mountain V iew, Overtone United S ta tes www. overtone-inc. com O alifornia. Inc. delivers brand monitoring a nd engagement to various enterpris es . It offers Open Mic s oftware-as -a-s ervice integrated C vertone, lis tening 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 Open Mic als o provides real time proces s ing, multi-channel lis tening, and proven s calability. O vertone, Inc. was formerly known as Is land Da ta C orporation. T he compa ny was founded in 1995 and is bas ed in S an F ra ncis co, C alifornia. As of 01/05/2004, Overtone, Inc. is a s ubs idia ry of LiveP ers on, Inc. P opC ap G ames United S ta tes www. popcap.com P opC ap G ames , Inc. develops and publis hes cas ual games . Its games a re played on the W eb, des ktop computers , cell phones , s martphones , P DAs , pock et P C s , iP ods , iP hones , ga me cons oles , and in-flight entertainment s ys tems . T he compa ny offers its products to W eb portals , retail s tores , mobile operators and developers , and game device manufacturers . P opC ap G ames , Inc. was founded in 2000 a nd is bas ed in S eattle, W as hington. It has operations in C hicago, Illinois ; S an F rancis co, C a lifornia; S hanghai, C hina; Dublin, Ireland; and R eality Mobile United S ta tes www. realitymobile. com R ancouver, B . C . , C anada . mobile video and data s haring technology. T he company was founded in 2003 and is bas ed in Herndon, V eality Mobile LL C provides S canS cout United S ta tes www. s cans cout. com V irginia. S canS cout, Inc. operates as an online video advertis ing network. It s erves publis hers , a dvertis ers , and ad networks . T he company was founded in 2005 and is bas ed in B os ton, Mas s achus etts with additional offices in New Y ork and Los Angeles . S cout L abs United S ta tes www. s coutlabs . com S cout La bs is a powerful, web-bas ed application tha t finds s ignals in the nois e to compa nies build better products and s tronger cus tomer relations hips . T he company provides technology and a collaborative platform for companies and their agents to lis ten to cus tomers and engage with them out acros s the Internet. S ometrics United S ta tes s ometrics . com S ometrics , Inc. operates as an analytics and a d platform s tartup compa ny s pecializ ing in s ocial media. It offers analytics and ad managing s olutions that focus on s ocial networking platforms a nd applications . T he company als o provides s ocial a dvertis ing s olutions , s uch as dis plays , engagements , and bra nd as s es s ments , as well as s ocial planners for a dvertis ers . In addition, it offers S ocial Analytics that provide a nalys is for s ocial applications a nd W ebs ites ; S ocial Ad Manager that helps to s erve and optimiz e ads to increas e revenue acros s s ocia l media properties ; and V irtual C urrency Mana ger, a virtual currency platform des igned to provide an interface to manage dis parate 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. wa s founded in 2007 and is headquartered in Los Angeles , C alifornia. S pigit United S ta tes www. s pigit. com S pigit, Inc. des igns , develops , and dis tributes s ocial networking s oftware for bus ines s innovation. It provides s tra tegic and technical cons ulting, webs ite des igning, project forecas ting, C R M applications , employee engagement tra cking, web logs , and currency a nd idea management s ervices . T he compa ny markets its products under InnovationS pigit, IdeaS pigit, and P redictionS pigit brand names . S pigit, Inc. is bas ed in P leas anton, C alifornia. S tatus Net C a nada www. s tatus . net S tatus Net, Inc. provides open s ource micro-blogging s ervices for bus ines s es , publis hers and bra nds , and communities . T he company offers s ta tus . net s oftware, an open s ource micro-blogging s ervice that is us ed to write s hort notices and s end them to friends and fans , a s well as to create and dis tribute open content. It als o provides profes s ional s upport contracts and cus tomiz ation for companies tha t us e S tatus Net s oftware on their s ervers for intra net or Internet microblogging. S tatus Net was founded in 2008 and is bas ed in Montrea l, C anada. Technorati United S ta tes www. technorati.com T echnorati, Inc. engages in s earching, s urfacing, a nd organizing blogs a nd 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 , and games . T he company was founded in 2002 and is ba s ed in S an F rancis co, C alifornia. Vdopia United S ta tes www. vdopia. com V dopia, Inc. operates as an online video advertis ing network and platform company. 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 DO Ad network to advertis e on video content; V DOAd platform with campaign ma nagement tools to offer online video advertis ing to a dvertis ers /cus tomers ; B randC onnect Ad technology to deliver C P Ms ; ana lytic tools to provide s tatis tics about ads and video ana lytics for client’s videos ; and AP Is to create/publis h content. Its s olutions to a dvertis ers , media pla nners , and marketers include publis her network , bra nd connect with various ad formats on various online Internet T V channels , advertis ing, mea s urable branding, a nd reporting. V dopia, Inc. was incorporated in 2007 and is bas ed in S a n J os e, C alifornia with s ales and development offices in S an J os e, C alifornia; and G urgaon a nd Mumbai, India. VE VO United S ta tes www. vevo. com V E V O operates as a mus ic video web s ite. T he company is bas ed in the United S tates . ViVu United S ta tes www. vivu. tv V iV u, Inc. develops participative event platform that enables live video pa rticipation from a pers onal computer, Mac, a nd Linux without any proprietary downloa ds . It offers a s olution for event organiz ers to create, publis h, a nd manage quality video events . T he company wa s incorporated in 2008 and is ba s ed in S unnyvale, C alifornia. Waterc ooler United S ta tes www. watercooler-inc. com W atercooler, Inc. operates F anS ection a nd T V Loop online communities that enable us ers to acces s a network of online fan communities in s ports and televis ion entertainment in the United S tates and internationally. T he company was founded in 2006 a nd is bas ed in Mountain V iew, C alifornia. Yext United S ta tes 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 24b. Company Descriptions – continued 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