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09 03 10 Web 2.0 Weekly
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09 03 10 Web 2.0 Weekly

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Video companies lead financing wave with $100m over last three months

Video companies lead financing wave with $100m over last three months

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    09 03 10 Web 2.0 Weekly 09 03 10 Web 2.0 Weekly Document Transcript

    • SOFTWARE & SERVICES 10 MARCH 2009 DAVID SHORE, CFA, MBA 416.860.6784 WEB 2.O WEEKLY david.shore@researchcapital.com Arun Thomas (Associate) 416.860.7666 VIDEO COMPANIES LEAD FINANCING WAVE MO ST AC T I V E S EC T O R I N F I N AN CI N G - V ID E O C OM PA NI E S Activity over the last three months was busiest in the video sector, with 13 companies raising almost $100 million. Social networking companies have the next highest totals with nine companies raising $46.7 million. Capital Market Activity by Sector - Last Three Months 120.0 100.0 80.0 (US$m) 60.0 98.6 40.0 46.7 41.5 20.0 35.0 26.5 25.3 25.0 22.5 20.9 15.0 12.4 12.0 11.5 11.4 10.0 9.5 6.2 4.3 4.0 2.0 1.3 1.2 0.0 Comment/Reputatio n G aming Micromedia O nline Learning Travel Financial Services RSS Mic roblog Mobile Search Media Wiki Virtual Goods Crowdsourced Content Video Virtual World Infrastructure Social Networks Aggregation Blog Ad Network Analytics 13 9 4 1 4 4 2 4 2 1 3 1 2 1 1 2 3 1 1 1 1 1 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. www.researchcapital.com 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 identified: W e have identified 89 public companies for our W eb 2.0 universe, with a combined market cap of $27.8 billion. These include a wide variety of companies, including MMOG (Massive Multi- Player Online Gaming) companies, social networking software companies, media sharing companies, and social lending companies. See below for a summary of the full universe (Figure 1). The average market cap for the group is ~$310 million (but a median of only $31.5 million), with average trailing revenue of $130 million (median $40 million). The companies are also generally profitable, with a median EBITDA margin of 13.3%. On a valuation basis, the overall average is 3.7x trailing revenue (median 0.9x) and 8.1x trailing EBITDA (median 5.5x). Ten of the companies have more than 500 employees. C omparable C ompany Analys is > Web 2.0 T rading C urrent US D Mark et US D L TM T otal US D L TM T otal E B ITDA T E V /L T M TE V /L TM C ompany Na me L T M as of Ti cker E xc hange C urrency HQ Price C ap ($m) R ev ($m ) E B IT DA ($m ) % R evenue E B ITDA E mployees Acce lerize N ew Medi a, Inc. 9 /3 0/20 08 A C LZ OTCB B US D United S tates 0. 22 5. 9 3. 2 ( 4. 7) NM 3. 2 x - 20 Actoz S oft C o. , Ltd. 9 /3 0/20 08 A 05279 0 K OS E KR W S outh K orea 10 ,5 00 5 9. 9 4 7. 3 8. 7 18 .3 % 0. 8 x 4 .3 x NA AQ Inte ractive, Inc. 1 2/31 /200 8 3 838 TS E JP Y J a pan 3 1, 35 0. 00 1 7. 2 6 0. 9 4. 9 8. 0% - - NA As s ociated Me dia Holdings I nc. 6 /3 0/20 07 A S MH OTCP K US D United S tates 0 0. 1 0. 1 ( 2. 3) NM 8. 0 x - 3 Bi gs tring C orp. 9 /3 0/20 08 B SG C OTCB B US D United S tates 0. 01 0. 6 0. 1 ( 2. 1) NM 2 7. 0x - 8 Be ta wave C orporation 9 /3 0/20 08 B W AV OTCB B US D United S tates 0 4. 4 6. 3 (11 .0 ) NM 2. 4 x - 41 Be yond C ommerce, Inc. 9 /3 0/20 08 B YO C OTCB B US D United S tates 0. 48 1 9. 6 1. 1 ( 7. 7) -9 8. 9% 2 0. 6x - 25 Br ight T hi ngs plc 9 /3 0/20 08 A IM: B GT A IM G BP United K ingdom 0 2. 9 0. 2 ( 1. 6) 47 .1 % 1 2. 3x - 9 Br oadW ebA s ia Inc. 9 /3 0/20 08 B W BA OTCP K US D United S tates 0. 75 6 3. 7 0. 0 ( 4. 6) NM - - 46 C DC C orp. 9 /3 0/20 08 C HI N. A Na s daqG S US D Hong K ong 1 8 0. 9 428. 1 18 .8 16 .0 % 0. 3 x 7 .3 x 3,1 25 C hina G ateway C orpora tion 9 /3 0/20 08 CGWY OTCB B US D United S tates 0. 00 0. 0 6. 7 ( 6. 6) 13 .3 % 0. 0 x - 37 C hines e G amer International 9 /3 0/20 08 G T S M: 3 083 GTS M TWD T a iwan 1 44 351 . 7 3 7. 0 17 .4 NM 8. 0 x 17. 0x NA C ornerW orld C orporation 1 0/31 /200 8 CWRL OTCB B US D United S tates 0. 14 6. 6 0. 6 NM NM 1 3. 1x - NA DAD A S pA 9 /3 0/20 08 C M: DA CM E UR Italy 5 9 9. 5 214. 6 34 .3 NM 0. 7 x 4 .1 x 5 74 DXN Holdings Bhd 1 1/30 /200 8 DX N K LS E MYR Ma lays ia 0. 33 2 0. 6 7 4. 7 9. 9 NM 0. 5 x 4 .0 x NA Dibz International, Inc. NA DIBZ OTCP K US D United S tates 0 0. 0 NA NM -0 .3 % - - NA Digita lP os t I nter active, Inc. 9 /3 0/20 08 DG LP OTCB B US D United S tates 0. 00 0. 3 0. 4 ( 3. 3) NM 2. 8 x - 11 Digita lT own, Inc. 1 1/30 /200 8 DG T W OTCB B US D United S tates 3 6 8. 5 NM ( 2. 5) 18 .3 % - - 3 Dolphin Digita l Me dia , I nc. NA DP DM OTCB B US D United S tates 0. 40 1 9. 5 NA NM NM - - 6 E olith C o. Ltd. 1 2/31 /200 7 A 04106 0 K OS E KR W S outh K orea 5 55 1 6. 8 1 6. 2 ( 0. 0) -6 0. 6% 1. 0 x - NA E xtensi ons, Inc. 9 /3 0/20 08 E XT I OTCP K US D United S tates 0. 49 4 6. 3 NM NM 16 .9 % - - 2 F ina ncia l Me dia Group, I nc. 1 1/30 /200 8 F NG P OTCB B US D United S tates 0 1. 0 6. 8 1. 2 26 .4 % 0. 0 x 0 .1 x 22 F luid Mus ic C anada , Inc. 9 /3 0/20 08 T S X: F MN TS X C AD United S tates 0. 33 1 3. 4 4. 2 ( 8. 6) NM - - 29 F rogs te r Inte ractive P icture s A G 6 /3 0/20 08 FRG XT R A E UR G er many 4 1 1. 0 5. 1 ( 3. 1) 61 .9 % 2. 1 x - NA Ga mania Digital E nterta inme nt C o. , L td. 9 /3 0/20 08 6 180 GTS M TWD T a iwan 2 5. 25 110 . 2 106. 8 18 .1 23 .9 % 0. 8 x 4 .7 x NA Ga meO n C o L td. 1 2/31 /200 8 3 812 TS E JP Y J a pan 81 ,0 00 7 9. 1 7 5. 4 19 .9 19 .2 % 0. 3 x 1 .2 x NA Ge oS entric O yj 9 /3 0/20 08 G E O 1V HL S E E UR F inland 0. 04 3 1. 5 5. 2 (12 .0 ) 36 .0 % 5. 1 x - 92 Gi ant Inte ractive G roup, Inc. 1 2/31 /200 8 GA NY S E US D C hina 7 1, 588 . 8 233. 1 1 44. 3 14 .7 % - - NA Gi gaMe dia L td. 9 /3 0/20 08 G IG M Na s daqG S US D T a iwan 4. 33 233 . 9 200. 5 48 .0 -2 5. 6% 0. 8 x 3 .5 x 9 75 Gravity C o., Ltd 9 /3 0/20 08 GRVY Na s daqG M US D S outh K orea 1 1 7. 8 3 1. 7 6. 1 4. 5% - - 6 36 Gree, Inc. 6 /3 0/20 08 T S E : 3 632 TS E JP Y J a pan 4, 69 0. 00 1, 057 . 1 2 9. 7 10 .7 NM 3 3. 5x - NA GungHo Online E nte rtainme nt, I nc. 9 /3 0/20 08 3 765 OSE JP Y J a pan 116 ,8 00 134 . 9 103. 2 15 .2 NM 1. 1 x 7 .2 x NA HanbitS oft, Inc. 9 /3 0/20 08 A 04708 0 K OS E KR W S outh K orea 3, 16 5. 00 4 4. 9 4 4. 9 (11 .5 ) NM 0. 6 x - NA IA C /Inte rA ctive C orp. 1 2/31 /200 8 IAC I Na s daqG S US D United S tates 13 1, 897 . 2 1 , 445 . 1 64 .6 37 .2 % 0. 1 x 2 .2 x NA IA S E ne rgy, I nc. 1 0/31 /200 8 IAS C . A OTCB B US D C a na da 0. 07 4. 9 0. 0 ( 0. 9) -1 5. 3% - - NA IdeaE dge, Inc. 1 2/31 /200 8 O T C B B: ID AE OTCB B US D United S tates 0 1 6. 9 0. 0 ( 4. 6) 7. 6% - - NA is ee media Inc. 9 /3 0/20 08 IE E T S XV C AD C a na da 0. 08 3. 2 1. 1 ( 4. 2) 33 .8 % 0. 6 x - NA J umbuck E ntertainme nt P ty Ltd. 1 2/31 /200 8 A S X :J MB ASX A UD Aus tra lia 0 1 4. 1 1 1. 3 4. 2 -4 2. 5% 0. 9 x 2 .4 x 72 J umpT V I nc. 6 /3 0/20 08 T S X: J T V TS X C AD C a na da 0. 39 3 4. 2 1 1. 5 ( 1. 8) -1 0. 1% 3. 8 x - NA K a boos e Inc. 9 /3 0/20 08 T S X: K AB TS X C AD C a na da 0 4 2. 2 5 7. 3 4. 4 -3 .7 % 0. 9 x 11. 2x NA K i ngs oft C o. Ltd. 9 /3 0/20 08 3 888 S EHK HK D C hina 2. 62 362 . 6 106. 7 36 .0 NM 2. 6 x 7 .6 x 1,6 60 Lingo Me dia C orpora tion 9 /3 0/20 08 T S XV :L M T S XV C AD C a na da 1 9. 7 3. 1 ( 1. 3) 38 .0 % 3. 3 x - NA Live World Inc. 9 /3 0/20 08 L VW D OTCP K US D United S tates 0. 04 1. 2 1 1. 7 ( 1. 2) 16 .0 % 0. 0 x - 73 Look S mart, Ltd. 9 /3 0/20 08 L OO K Na s daqG M US D United S tates 1 1 6. 5 6 9. 5 ( 2. 6) NM - - 93 Magnitude Informa tion S ys tems Inc. 9 /3 0/20 08 MA GY OTCB B US D United S tates 0. 02 8. 3 0. 1 ( 3. 2) NM - - 13 Mixi, I nc. 1 2/31 /200 8 2 121 TS E JP Y J a pan 308 ,0 00 476 . 4 118. 6 45 .1 26 .9 % 3. 1 x 8 .2 x NA Mode rn T imes Group Mtg A B 1 2/31 /200 8 MT G B OM SE K S weden 11 4. 50 828 . 6 1 , 446 . 0 2 31. 2 48 .6 % 0. 9 x 5 .5 x NA Moggle , Inc 1 2/31 /200 8 MMO G OTCB B US D United S tates 2 7 2. 6 NM ( 1. 1) 65 .0 % - - 3 MOK O. mobi L imited 6 /3 0/20 08 MK B ASX A UD Aus tra lia 0. 06 3. 1 1. 3 ( 2. 0) NM 1. 5 x - NA NE O W IZ G ame s C orpora tion 1 2/31 /200 7 A 09566 0 K OS E KR W S outh K orea 36 ,5 50 227 . 3 116. 7 31 .4 30 .8 % 1. 9 x 7 .0 x NA NetDra gon We bS oft, I nc. 9 /3 0/20 08 7 77 S EHK HK D C hina 3. 35 228 . 3 9 5. 2 46 .3 17 .6 % 0. 6 x 1 .2 x 1,4 82 Netea s e. com I nc. 1 2/31 /200 8 NT E S Na s daqG S US D C hina 21 2, 571 . 8 450. 9 2 93. 1 25 .3 % - - NA NeXplore C orporation 9 /3 0/20 07 NX P C OTCP K US D United S tates 0. 95 5 3. 0 NM ( 4. 9) -5 .1 % - - 19 Ngi G roup Inc. 1 2/31 /200 8 2 497 TS E JP Y J a pan 16 ,2 00 2 0. 2 9 9. 4 30 .6 54 .1 % - - NA Northgate T e chnologies L imited 1 2/31 /200 8 5 900 57 B SE INR India 3 0. 65 2 0. 6 130. 0 22 .9 -5 .3 % 0. 2 x 0 .9 x 2 86 Open T ext C or p. 1 2/31 /200 8 OTE X Na s daqG S US D C a na da 29 1, 527 . 4 769. 3 1 95. 0 NM 2. 2 x 8 .5 x 3,4 00 Openwa ve S ys tems Inc. 1 2/31 /200 8 OPW V Na s daqG S US D United S tates 0. 72 6 0. 0 199. 6 (10 .2 ) 13 .1 % - - 6 27 P e rfect W orld C o., Ltd. 1 2/31 /200 8 PWRD Na s daqG S US D C hina 10 550 . 8 210. 1 1 13. 7 46 .0 % - - NA P hotoC hannel Ne tworks Inc. 1 2/31 /200 8 T S XV :P N T S XV C AD C a na da 1. 65 4 2. 6 1 5. 4 ( 0. 8) 13 .3 % 2. 7 x - NA Quepas a C orp. 9 /3 0/20 08 QPS A Na s daqC M US D United S tates 1 1 1. 4 0. 1 (11 .8 ) 9. 4% - - 63 OA O R B C Informa tion S ys tems 1 2/31 /200 7 R BCI R TS US D R us s ia 0. 25 3 4. 7 132. 6 17 .3 10 .1 % 0. 0 x 0 .1 x NA S handa Intera ctive E nte rtainment L td. 1 2/31 /200 8 S NDA Na s daqG S US D C hina 31 2, 134 . 9 521. 7 2 39. 7 -3 4. 8% - - NA S hutterfly, Inc. 1 2/31 /200 8 S F LY Na s daqG S US D United S tates 7. 17 180 . 3 213. 5 28 .4 -6 0. 5% 0. 4 x 3 .2 x 5 14 S K C ommunications C o. , Ltd. 1 2/31 /200 7 A 06627 0 K OS E KR W S outh K orea 6 ,1 10 162 . 6 134. 2 12 .6 NM 1. 2 x 12. 9x NA S NA P I nteractive, Inc. 9 /3 0/20 08 S T VI OTCB B US D United S tates 0. 95 1 0. 1 2. 3 0. 2 21 .7 % 3. 9 x 38. 9x 5 S NM G lobal Holdings 9 /3 0/20 08 S NMN OTCP K US D United S tates 0 0. 0 2. 0 ( 0. 7) NM 1. 1 x - 33 S ocial Media V enure s , Inc. 1 2/31 /200 8 S MVI OTCP K US D United S tates 1. 20 0. 0 0. 1 ( 0. 1) 49 .5 % 0. 1 x - NA S i te s earch C orpora ti on 1 0/31 /200 8 S TPC OTCB B US D United S tates 1 8. 9 NM ( 0. 9) -1 2. 0% - - 15 S park Ne twork s , Inc. 1 2/31 /200 8 L OV A ME X US D United S tates 2. 33 4 7. 9 5 7. 3 12 .4 33 .7 % 0. 8 x 3 .9 x NA S pectrumDNA, Inc. 9 /3 0/20 08 S PX A OTCB B US D United S tates 0 9. 7 0. 1 ( 2. 7) 10 .8 % - - 7 T encent Holdings Ltd. 9 /3 0/20 08 7 00 S EHK HK D C hina 4 7. 25 10 ,9 49 .3 903. 2 4 47. 5 -5 0. 6% 1 3. 1x 26. 5x 6,0 39 T he P arent C ompany 8/2/2 008 K IDS . Q OTCP K US D United S tates 0 0. 2 112. 0 (13 .5 ) -1 0. 4% 0. 2 x - 3 47 T he 9 Limited 1 2/31 /200 8 NC T Y Na s daqG S US D C hina 9. 33 250 . 2 249. 7 84 .1 0. 4% - - NA T he S tre et.com, Inc. 1 2/31 /200 8 TS CM Na s daqG M US D United S tates 2 5 5. 0 7 1. 9 7. 7 23 .0 % - - NA T otal S ports O nli ne A S A 3 /3 1/20 06 TOS O O T C NO NO K Norway 0. 04 0. 2 1. 9 ( 1. 0) -9 1. 6% 4. 6 x - 16 T ree . C om, Inc. 1 2/31 /200 8 TRE E Na s daqG M US D United S tates 4 3 9. 2 228. 6 (23 .9 ) NM 0. 2 x - NA Unis e rve C ommunications C or p. 1 1/30 /200 8 T S XV :U S S T S XV C AD C a na da 0. 05 1. 0 2 3. 1 0. 1 -1 0. 1% 0. 1 x 31. 3x NA Unite d Online Inc. 1 2/31 /200 8 UNT D Na s daqG S US D United S tates 4 325 . 3 669. 4 1 53. 9 NM 0. 9 x 4 .1 x NA UOMO Media, Inc 1 0/31 /200 8 UO MO OTCB B US D C a na da 0. 06 5. 1 0. 5 ( 0. 4) NM 1 1. 4x - NA VO IS , I nc. 1 2/31 /200 8 V OI S OTCB B US D United S tates 0 3. 3 0. 0 ( 1. 3) NM - - 4 W ebzen Inc. 1 2/31 /200 8 W ZE N Na s daqG M US D S outh K orea 1. 22 1 4. 5 1 8. 4 ( 1. 9) NM - - 3 30 W izz a rd S oftwa re C orporation 9 /3 0/20 08 W ZE A ME X US D United S tates 0 1 9. 0 6. 2 ( 6. 5) 38 .8 % 3. 1 x - 1 10 W oozyF ly, Inc. 9 /3 0/20 08 W ZY F OTCB B US D United S tates 0. 15 2. 6 0. 0 NM 22 .4 % - - 14 W orlds .com Inc. 9 /3 0/20 08 W DDD OTCB B US D United S tates 0 7. 3 0. 1 NM -7 .6 % - - 1 W ynds torm C orporation NA W YN D OTCB B US D United S tates 0. 12 2. 2 NA NM NM - - NA XI NG AG 9 /3 0/20 08 O 1B C XT R A E UR G er many 25 162 . 5 3 9. 7 15 .4 0. 0% 2. 7 x 7 .1 x 1 61 Y e dangO nline C orp. 1 2/31 /200 7 A 05277 0 K OS E KR W S outh K orea 6, 30 0. 00 6 3. 8 4 4. 4 9. 9 65 .0 % 1. 4 x 6 .4 x NA Y nk K orea Inc. 1 2/31 /200 7 A 02377 0 K OS E KR W S outh K orea 3 ,4 60 5. 5 1 2. 6 ( 1. 0) -9 8. 9% 0. 4 x - NA ZipL ocal I nc. 9 /3 0/20 08 T S XV :ZIP T S XV C AD C a na da 0. 02 0. 9 2. 7 ( 3. 7) 8. 2% 0. 6 x - NA High 10 ,9 49 .3 1 ,4 46 .0 44 7. 5 65 .0 % 3 3. 5x 38. 9x 6, 03 9 Low 0. 0 0. 0 -2 3. 9 -9 8. 9% 0. 0 x 0 .1 x 1 Average 312.5 130.4 28.2 7.3% 3.7x 8.1x 468 Medi an 3 1. 5 39 .7 0 .2 13 .3 % 0. 9 x 5 .5 x 72 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 ) Twitter raises $35 million: The largest W eb 2.0 financing of the last three months remains the $35 million raised by Twitter (Figure 2). Overall, there were 25 financings announced in February, totalling $185.5 million, or $7.4 million on average. There have been five financings announced so far in March, totalling $36.2 million, led by the $15 million Series D round for Vidyo. The average value for February was above the $6.8 million average for January, with four financings over $15 million in February (Twitter, Synthasite, Tremor Media, and Offerpal Media) vs. no deals over $15 million in January. For additional details, see Figure 29 (at end of note). Financing Summary - Last Three Months 40.0 35.0 30.0 25.0 Mar-09 (US$m) 20.0 Feb-09 Jan-09 15.0 10.0 5.0 0.0 Tongxue Mixpo Myngle CoveritLive Motionbox TextDigger Xobni Synthasite Vidyo Offerpal Media AdMob Go Internet Media One True Media Tvtrip Kewego SocialMedia MMO Life BackType SundaySky Gbox Mendeley Filtrbox Meez Twitter NewsGator SendMe Inc. IMVU InsideView Tynt Tripwolf fav.or.it Tvinci Tremor Media Yodle Outbrain Nurien JibJab Oodle Virtual Fairground FetchDog 7 Billion People Hubdub Snooth Identi.ca VirtuOz Play Hard Sports Fliqz E-Global Sports Network RatePoint OneSpot Outright DECA Geni Cake Financial mEgo Aster Data Systems AboutUs Sportsblogs FamilyLink.com Pulse Entertainment Imagini Simulmedia Emergent Game Technologies WhistleBox Wamba Figure 2. Financings, Last Three Months Source. Company reports Video continues to be the most active sector: Activity over the last three months was busiest in the video sector, with 13 companies raising almost $100 million (Figure 3). Social networking companies have the next highest totals with nine companies raising $46.7 million.
    • Page 4 Capital Market Activity by Sector - Last Three Months 120.0 100.0 80.0 (US$m) 60.0 98.6 40.0 46.7 41.5 20.0 35.0 26.5 25.3 25.0 22.5 20.9 15.0 12.4 12.0 11.5 11.4 10.0 9.5 6.2 4.3 4.0 2.0 1.3 1.2 0.0 Comment/Reputation Gaming Micromedia Wiki Travel RSS Microblog Mobile Media Online Learning Financial Services Crowdsourced Content Infrastructure Blog Search Social Networks Virtual Goods Video Virtual World Aggregation Ad Network Analytics 13 9 4 1 4 4 2 4 2 1 3 1 2 1 1 2 3 1 1 1 1 1 Figure 3. Capital Market Activity, by Sector, Last Three Months Source. Company reports Average round size increases slightly: On a trailing 12-month basis, total financing dollars inched up as of February 2009, with average round sizes increasing slightly as well (Figure 4).
    • Page 5 LTM Financing 4,000.0 20.0 18.0 3,500.0 16.0 3,000.0 14.0 2,500.0 12.0 (US$m) (US$m) 2,000.0 10.0 8.0 1,500.0 6.0 1,000.0 4.0 500.0 2.0 0.0 0.0 May-06 May-07 May-08 Nov-05 Mar-06 Nov-06 Mar-07 Nov-07 Mar-08 Nov-08 Jul-05 Sep-05 Jan-06 Jul-06 Sep-06 Jan-07 Jul-07 Sep-07 Jan-08 Jul-08 Sep-08 Jan-09 Total Average Figure 4. Financings, Last 12 Months Source. Company reports Cumulative total over $5.6 billion: Overall, on a cumulative basis, W eb 2.0 financings have totalled over $5.6 billion, with the majority of the financing coming in late 2007 and the first three quarters of 2008 (Figure 5). Financing for the first quarter of 2009 ($438 million) has now passed that raised in the fourth quarter of 2008 ($339 million) – reversing the downtrend since the second quarter last year.
    • Page 6 Web 2.0 Financing (cumulative) 1,400.0 6,000.0 1,313.3 1,200.0 5,000.0 959.2 1,000.0 4,000.0 800.0 727.7 (US$m) (US$m) 3,000.0 600.0 528.9 438.0 2,000.0 400.0 338.5 319.4 1,000.0 200.0 151.7151.5 135.6 106.6 87.2 82.8 77.4 41.9 57.8 38.8 20.1 37.5 33.5 18.2 0.0 0.0 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 2004 2005 2006 2007 2008 2009 Figure 5. Financing, Cumulative Source. Company reports U.S. remains dominant: U.S. companies continue to dominate capital market activity – with almost 67% of financings/M&A involving U.S. companies (based on dollars) (Figure 6). The international spread of Web 2.0 companies is demonstrated in the financings as well, with 16.6% raised for Chinese companies and 4.2% for Russian companies. Based on number of transactions, the U.S. leads with 72.1% of deals, while Canada is third in number of financings at 5.1% (Figure 7). Financing/M&A by Country - LTM ($) Financing/M&A by Country - LTM (#) China Canada Israel 16.6% UK 5.1% 3.7% 5.1% Russia France 4.2% 2.8% UK Israel 2.1% 1.9% ROW France 1.6% 11.2% Denmark 1.6% ROW 5.1% USA USA 72.1% 66.7%
    • Page 7 Figures 6 & 7. Financing/M&A, by Country (LTM, $, #) Source. Company reports Larger volume of early-stage funding (by count): Almost half of financings in the last 12 months are for early-stage companies (Angel/Seed or Series A) (Figure 8). Series B rounds are 28.4% of the total, with later-stage (Series D, E and PIPE) deals accounting for just 7.3%. Financing by Type - LTM Series C 15.1% Series B 28.4% Series D 4.7% Angel/Seed 11.2% Debt financing Series A 3.0% 35.8% PIPE 1.7% Figure 8. Financing, by Type (LTM, #) Source. Company reports Equity financings smaller over last 12 months: In the last 12 months, the average size of Series A, B, C, and D rounds have all been lower than the overall average (Figure 9). Note though that Angel/Seed rounds have been larger.
    • Page 8 Average financing round size 40.0 36.1 35.0 33.5 33.5 30.0 28.8 25.0 22.7 (US$m) 20.0 18.2 15.0 11.7 11.9 11.3 11.3 9.8 10.0 7.3 6.8 5.8 5.0 3.5 2.5 0.0 Angel/Seed Debt financing PIPE Series A Series B Series C Series D Series E LTM Average Size Overall Average Figure 9. Average Size per Round Source. Company reports C A P I T A L M A R K E T S A C T I V I T Y (P R I C E P E R F O R M A N C E ) Price Performance: Our W eb 2.0 index (market-cap weighted) underperformed the NASDAQ composite index from mid 2008 until recently (Figure 10).
    • Page 9 Web 2.0 Index Price Performance 140 120 100 80 60 40 20 0 3/10/2008 3/24/2008 4/7/2008 4/21/2008 5/5/2008 5/19/2008 6/2/2008 6/16/2008 6/30/2008 7/14/2008 7/28/2008 8/11/2008 8/25/2008 9/8/2008 9/22/2008 10/6/2008 10/20/2008 11/3/2008 11/17/2008 12/1/2008 12/15/2008 12/29/2008 1/12/2009 1/26/2009 2/9/2009 2/23/2009 3/9/2009 NASDAQ COMP Web 2.0 (Market Cap Weighted) Figure 10. Web 2.0 Price Performance Source. Capital IQ Webzen leads; NGI gives back price increase: NGI Group (2497-TSE) fell 22.8% after leading last week, to have the worst performance in the group (for stocks with prices greater than $1) (Figure 11), after increasing 22.1% last week. W ebzen (W ZEN-NasdaqGM) rose the most, +37.1%.
    • Page 10 1 Week P rice P erformance Webz en Inc. 37.1% NEOWIZ G ames Corporation 20.4% Perf ect World Co., Ltd. 17.2% NetDragon WebS oft, Inc. 14.3% G amania Digita l Entertainment Co., Ltd. 12.7% G iant Interactive G roup, Inc. 11.8% Chines e G amer International 8.3% Tencent Holdings Ltd. 7.0% Eolith Co. Ltd. 6.7% G ree, Inc. 6.6% K ings oft Co. Ltd. 4.4% HanbitS oft, Inc. 4.1% Neteas e.c om Inc. 2.2% TheS treet.c om, Inc. 1.7% A ctoz S oft Co., Ltd. 0.5% S handa Interactive Entertainment Ltd. 0.0% Tree.Com, Inc. 0.0% Moggle, Inc 0.0% G ungHo Online Entertainment, Inc. -0.2% S K Communica tions Co., Ltd. -0.8% Y nk K orea Inc. -2.4% Modern Times G roup Mtg A B -2.6% DA DA S pA -3.0% Open Tex t Corp. -3.7% S ocial Media V enures , Inc. -4.0% S park Netw orks , Inc. -4.5% PhotoChannel Netw orks Inc. -4.6% A Q Interactive, Inc. -4.7% Y edangOnline Corp. -5.3% DigitalTow n, Inc. -8.4% S hutterf ly , Inc. -8.5% Frogs ter Interactive Pictures A G -8.6% IA C/InterA ctiveCorp. -9.1% United Online Inc. -10.0% Northgate Technologies Limited -10.4% G ameOn Co Ltd. -12.9% The9 Limited -13.5% Mix i, Inc. -14.2% X ING A G -14.2% G igaMedia Ltd. -14.9% Ngi G roup Inc. -22.8% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% Figure 11. 1-Week Price Performance Source. Capital IQ
    • Page 11 INDUSTRY NEWS (PARTNERSHIPS, FINANCIAL RESULTS, NEW PRODUCTS) K ey Developments C ompany Headline Notes T ree .C om, Inc. (Na s daqG M: T R E E ) T ree. C om Inc. L aunches New, S implifie d F ilte r T re e.C om I nc. announce s the lau nch of new, simplified f ilter te chnology available only to Le ndingT ree Network lende rs . F iltering te chnology T echnolo gy at L endingT ree give s lenders a cus tomer targeting capability at their finger tips . T he te chnology , no w eas ier tha n ever, s implifie s the filter s et up a nd management proces s providing le nders a more stre amlined approa ch to targeting the exa ct cus tomer s egments that mee t s pecific unde rwriting crite ria a nd inves tor requ irements. LendingT re e's proprieta ry filtering technolo gy was firs t intro duced in 1998 and s ince that time, has helped more than 25 million borrowers work with lende rs clos ing more tha n $1 85 billion in loa ns . Le nders who belong to the LendingT re e Ne twork work with highly-qua lified cus tomers look ing fo r mortgages a nd ref ina nce loans , home e quity loa ns /lines o f credit, a uto lo ans , and pe rs onal lo ans . R B C Information S y ste ms L aunche s Macroecono mics O AO R B C Information S ys te ms a nnou nced the launch of a new proje ct-M acro economics -integrated with the Q uo te.ru financia l news porta l. O AO R B C Informa ti on S ys tems P roje ct T he pro duct is aime d at providing R B C 's us ers with re gular updates o n macroecono mic statistics for R u ss ia and a number o f other countries . (R T S : R B C I) T he new project is divided into s everal blocks o ffering information, news a nd analys is . In thes e block s vis ito rs will ha ve acce ss to an economic ca lendar fo r 6 countries , the late st s howings fo r at leas t 3 0 to 40 ma croe co nomic indicators , the mos t recent econo mic updates , analy tical articles a nd commenta ries by ex perts o f the world's inves tment companies , a s well as e co nomic f ore ca s ts by mo re tha n 20 top world's and R us sian inves tment banks . In a dditio n to tha t, the po rtal's us ers will a ls o be granted a cce ss to s tatis tics archives f eatu ring histo rical ma croe co nomic indices , along with a brief des cription of e ach of the indicators, including a no te o n the pe riodicity of updates a nd the date of the lates t update. T he dynamics of e ach of the indicators ca n be track ed in a chart. No rthgate T echno lo gie s Limited A ppoints R ames h Northgate T e chnologies Limited informed that M r. R ames h Y arllagada has be en a ppointe d as a dditio nal dire ctor (non-ex ecutive and Northgate Te chnologies L imited Y arllaga da a s Additional Director indepe ndent director) of the company effective from F ebru ary 2 8, 2 009 in the board mee ting he ld on F e bruary 28, 2 009 . (B S E : 590057) IdeaE dge Inc. A nnounces A uditor C hange Idea E dge I nc. announce d tha t the B DO S e idman, LL P wa s appo inted the inde pendent re gis te re d pu blic accounting firm o f the C ompany on Idea E dge, Inc. (O T C B B : ID AE ) O cto ber 8, 200 8 and remains its independent re gistere d pu blic accounting firm. P erfect W orld C o. L td. Announces U naudite d P e rf ect W orld C o. Ltd. announce d unaudited cons olidated earnings res ults for the f ourth quarter a nd y ear e nded December 3 1, 2 008. F or the P erfec t W orld C o., L td. C o ns olidated E arnings R e su lts f or the F ourth Qu arter and quarte r, the company 's total re venues were R MB 417 .8 million ($61. 2 million), an increas e o f 61. 7% f rom R M B 258. 4 million for the fou rth (Nas da qGS : PW R D) Y ear E nde d De ce mbe r 31, 2008 ; P rovides E arnings quarte r of 2 007. Net income f or the qua rter was R MB 12 4.8 millio n and or R M B 0.42 per diluted s hare a s co mpa re d to net inco me of R M B G uidance for the F irs t Qu arter of 2009 146. 2 million or R MB 0. 50 f or the sa me qua rter of 2 007. F or the ye ar, the company 's to tal reve nues we re R MB 1, 437. 2 million as compared to to tal reve nues o f R MB 6 89.1 million in 2 007. T he y ea r- over-y ear increas e wa s primarily due to the ex pansion of the C o mpany 's game portfolio , the s ucces sf ul lau nch of a s eries of e xpa ns ion pack s and ma rk eting campaigns , and a significant e xpa ns ion in overs eas licens ing bus ine ss . Net income f or the ye ar was R MB 64 6.5 millio n and net income attributa ble to o rdinary s ha re holders of R MB 646 .5 million or R MB 2. 18 per diluted s ha re as compared to net income of R MB 361. 94 million and net inco me attributa ble to ordinary shareholders of R MB 360 .2 million or R M B 1 .35 per dilu ted share in 20 07. P erfect W orld C o S eek s A cquis itions Michael C hi, the F ou nder, C hairman and C E O of P erfect W orld C o., Ltd. , s aid in a co nference ca ll, “O ur pos itive re su lts during the perio d P erfec t W orld C o., L td. co ntinue to be drive n by ou r e xecution of our s trategy. W e continue to de velop and lau nch new games to the marke t in a very time ly ma nne r. (Nas da qGS : PW R D) W e have also s een ma ny great achie vements in our o vers eas e xpa ns ion eff orts during 20 08. W e s ucces s fully broadened our geographic co ve ra ge in A s ia and E u ro pe thro ugh overse as licens ing and we es tablis he d a wholly owne d s ubs idia ry in the U nite d S tate s that ope rates our own games thro ugho ut N orth A me rica. P urs uing s trate gic a cquisitions is als o one of o ur stra tegy to drive bus ines s gro wth.” U pdate to P erfe ct W orld C o., Ltd.'s E quity B u yba ck o n As o f Ma rch 1 , 20 09, P e rfe ct W orld C o. , Ltd. ha s re purchas ed 977, 492 ADS 's (equ ivalent to 48 874 60 s ha re s) and 18 ,750 ,000 s hares , u nder P erfec t W orld C o., L td. M arch 1, 2 009 its s ha re repurchas e pla n. (Nas da qGS : PW R D) J umbuck E nterta inment P ty Ltd. announces a n E quity J u mbuck E ntertainment P ty Ltd. (A S X : J MB ) authoriz ed a n on-mark et s ha re repurchas e program on March 3, 200 9. U nder the progra m, J umbuc k E nte rtainment P ty L td. B uy back J u mbuck will repurchas e up to 4,80 2,011 ordinary s hares , repres enting 9. 7% o f the is s ued capital. T he program will begin on M arch 18 , (AS X :J MB ) 2009 and continue for 1 2 months, or until the maximum number o f s hares is acquired or u ntil notice is given that the buy back is co ncluded. T he s ha re buy back progra m is a part of J umbuck ’s capital management program. O n M arch 3, 2009 , J umbuck has 4 9,53 2,82 5 s hares in is s ue. Au stock S ecuritie s Ltd. (Melbourne ) acted as the brok er to J u mbu ck f or the trans action. T ence nt H ol dings L td. (S E HK : 700) T ence nt Ho ldings Ltd. E x pands Mobile S ervice T urf in T encent Holdings Ltd. ex pands its se rvice to 1 6 area s acro ss C hina , on the s trength of gene ra l packe t radio s ervice (G P R S ) o f C hina C hina U nico m (Ho ng K ong) Ltd. , formerly k nown as C hina U nico m Ltd. C hina U nicom's G P R S u se rs can install the lates t vers io n of Mobile Q Q , a ce llular me ss aging s ervice provided by T e ncent, in the ir mobile pho nes . It means that they can cha t with their friends any time. T he lates t ve rs ion will be available in su cces s io n in other area s in the cou ntry. U p to no w, the lates t vers io n is expe cted in the 1 6 area s including G uangdong P rovince, Zhe jiang P rovince , Hu bei P rovince, S hanghai, J iangs u P rovince , F ujia n P ro vince, T ianjin, J ilin P ro vince, H enan P rovince , S handong P rovince , He bei P rovince, Ha ina n P ro vince, J iangxi P rovince, He ilongjiang P rovince, Xinjiang U y gur A uto nomous R egion, and G uangxi Zhua ng A uto nomous R e gio n. XI NG AG O pens S ubs idiary in Mila n XING A G is continuing o n its clea r cou rs e of inte rnational ex pansion. T he opening of a new su bs idiary office in M ilan mea ns that XIN G AG is X ING AG (X T R A: O 1B C ) now pre se nt a t a local leve l f or the thriving o nline co mmunity in Italy . T he C ompa ny has appointed C ipriano Mo neta (45), an internationally re nowne d Internet Manager, with the aim o f driving f orwa rd member growth and B 2 B operations in Italy with increa se d impe tus . B ey ond C omme rce Inc. R e ports S ale s R es ults for the B e yond C o mmerce Inc. re ported s ale s re su lts f or the mo nth of F ebru ary 2 009. T ota l revenu es of $3,3 26,0 00 fo r the mo nth o f F ebru ary B eyond C omm erce , Inc . M onth of F e bruary 2009 ; P rovide s E arnings G uidance for re pres ent an increas e o f 44 % compared with the prior month, a nd a bout 80% increa se s ince December 20 08. The company a nticipa tes the (O TC B B : B YO C ) the F irs t Qu arter of 2009 ; to La unch i-S U P P LY 's E - firs t quarter to be profitable, bas ed on current trends . C o mmerce W idge t S tore T he compa ny anno unced that its i-S U P P LY 's E -comme rce widget s to re will enter the mark et u sing a be ta vers io n 1.0 on thou sa nds of W eb sites in late March 2 009, off ering abo ut 1 .8 million brand name pro ducts . i-S U P P LY will a dd a n additional re ve nue strea m and be the back bone of the proprie tary advertis ing network the C ompa ny is currently developing. T he 9 to Lau nch O pen B e ta T e st for F IF A O nline 2 T he9 Limited anno unced that it planne d to initiate ope n be ta te st for P E ente rtaining game, F IF A O nline 2 in A pril. T he game is the T he9 L i mited (Nas da qGS : NC T Y) developed ve rs ion o f fo otba ll game FI F A, a multimedia o nline role -play ing ga me (MMO R P G ) by A merican game runner, E le ctro nic A rts , which has go t the of ficial authoriz ation f ro m F e deration Inte rnationale de F oo tball As s ocia tio n. G iant I nteractive G ro up I nc. R e ports E arnings R es ults for G iant Interactive G rou p Inc. unau dited conso lidated ea rnings re su lts f or the fou rth qua rter and fiscal y ear ended December 31 , 20 08. F or the G iant Interactive G roup, Inc . the F ou rth Q uarte r a nd F u ll Y ear E nded December 3 1, fourth qua rter 200 8, the company reported that net income was C NY 290 .3 million, a yea r-over-yea r decreas e o f 13 .0% f ro m C NY 333. 8 (NYS E :G A) 20 08 ; P rovides E arnings G uidance for the F irs t Q ua rter millio n. N et income de clined fro m the sa me perio d las t y ear as the C o mpany remained in a trans itio n pe riod following the adjus tme nts made of 200 9 ; Declares C as h Dividend P ay able on April 10, to ZT O nline's mone tiz ation s tru cture du ring the third qua rter 200 8. B as ic e arnings per s ha re for the pe riod was C NY 1.2 6 and dilu ted 20 09 ; P lans to La unch N ew G ames earnings pe r share was C N Y 1 .23 co mpare d to bas ic earnings pe r share of C NY 1.3 9 and dilu ted earnings pe r share of C NY 1.3 3 for the sa me period las t y ear. Net revenu e was C N Y 3 53.1 million, re pres enting 18.8 % decreas e from C NY 434 .8 million in the fou rth qua rter 200 7. Income before income tax expe ns es was C NY 25 5.31 million compa re d to C NY 333 .80 millio n in the fou rth qu arter 20 07. Non-G AA P net inco me for the qu arter was C NY 29 8.26 million compa re d to C NY 347 .32 millio n for the s ame perio d in 20 07. B as ic Non-G AA P earnings per share fo r the perio d was C NY 1 .29 a nd dilute d Non-G A AP ea rnings per s hare was C NY 1.2 6 compared to bas ic No n-G A A P e arnings per s ha r S park Networks , Inc. (AME X : L O V) S park Networks Inc. A nnou nces U nau dited C ons olida ted S park Network s Inc. a nnou nced u naudited conso lidate d ea rnings re su lts f or the fourth qua rter and full y ea r e nde d Decembe r 3 1, 2 008. E arnings R es ults fo r the Fo urth Q ua rter and F ull Y ear R evenue for the fo urth quarter o f 20 08 was $ 13.2 million, a de crea se of 18% compa re d to $16 .0 million in the fourth qua rter of 2 007, and a E nde d Decembe r 31, 2 008 ; A nno unces Impairme nt 6% decre as e compared to $ 14.0 million f or the prio r quarter. Net los s for the fo urth quarter o f 200 8 was $ 164, 000, or $0 .01 per bas ic and C harges diluted s ha re, compared to ne t income of $6. 6 million, or $0. 25 per bas ic and dilute d s hare, for the fo urth quarter o f 200 7. I n the fo urth quarte r of 2 007, the C ompany releas ed net ope ra ting los s valuation allo wa nces , which redu ce d the ta x provision. Adjus te d E B I T DA f or the fourth qua rter of 2 008 was $3. 7 million, a decre as e of 3% compa red to $3.8 million f or the fourth qua rter of 2 007 , and a decre as e of 11% co mpared to $4 .1 million in the prior quarter. Fo r the quarte r, the co mpany has o perating income of $ 1,23 7,000 aga inst ope rating income of $1,6 19,0 00 reported a y ear ago. F o r the quarter, the compa ny had income befo re inco me tax es of $721 ,000 aga ins t income before income tax es of $1,89 6,00 0 repo rted a ye ar ago . F or the qu arter, the company had E B IT DA of $ 1,17 8,00 0 agains t E B IT DA o f $2, 420, 000 re ported a y M odern T imes G ro up to La unch Ne w T V C hannel in Modern T imes G roup Mtg AB will launch a ne w free tele vis ion channel in the C ze ch R epu blic. T he company s aid the channel, to be called Modern T ime s G roup Mtg AB C z ech R epublic P rima C O OL , will air on A pril 1, 200 9 and complement the compa ny's exis ting P rima televis ion cha nnel. P rima C OO L will be a broad-ba se d (O M: MT G B ) gene ra l e nterta inment channel, ta rgeting 2 0-4 0 y ear o ld viewers .
    • Page 12 W izz ard Media S igns Distribution Agre ement with G et W iz z ard Me dia a divis ion o f W izz ard S oftware C orpo ra tio n an noun ce d th at it ha s sign ed a n agree me nt with G e t Ma rried to dis tribu te its W izzard S oftware C orpora ti on M arried exclus ive video con tent via A pple iT un es , Micro so ft Zun e Ma rk etpla ce and s ele ct vide o s treamin g web s ite s. Driven by unique video and (AME X: W ZE ) in forma tio n, www.G etMarried.com and G et M arried's s ho w on Lif etime T elevis ion conne cts bride s with lo ca l a nd n ational weddin g profes s io nals and in dus try expe rts online and on televis io n every day throu gh e nterta inmen t an d ne ws. W ork ing with G et Married fits with W iz z ard's s trategy o f he lping high-qua lity, branded con tent produ ce rs ex pan d th eir rea ch and expos ure to new audiences . As pa rt of G e t Marrie d's mis s ion to provide unique co nten t to brides and wedding profe ss ionals how and wh en they want it, th e pa rtn ersh ip with W izz ard Media further e nables G et Married to dis tribute its expans ive portfolio of wedding-related video . U pdate to G iant Inte ra ctive G roup, Inc.’s E quity B uy ba ck As o f Decembe r 3 1, 2 008 G ian t Interactive G roup, In c. has repurch as ed 1 4,94 7,20 0 s hares fo r a to tal cos t of $97. 7 million, under the G iant Interactive G roup, I nc . on December 3 1, 2 008 program an noun ce d on Au gus t 1 1, 2 008. (NYS E :G A) S ites earch C orpo ra tio n A ppo ints J a mes Dixo n as a C hief S ites ea rch C orporation co mmenced an emplo yment agree men t with J ames Dixo n pu rs ua nt to which Mr. Dixo n will s erve as the company 's S ites ea rch C orporation E xecutive O ff icer C hief E xe cu tive O ff icer ef fective March 4, 200 9. T he agree me nt is for an in itial on e y ear te rm un les s te rminate d by eithe r party and ma y be (O TC B B : S T P C ) extende d by mutu al agreement between the co mpa ny and Mr. Dixo n. T ree .C om, Inc. (Na s daqG M: T R E E ) T ree. C om, In c. P rovides E arn in gs G uidance f or the F irs t T re e.C om, Inc. provided earnings gu ida nce fo r the f irs t qu arter of 200 9. F or the quarter, the compa ny expects E B IT DA an d ne t in come (los s ) Q ua rte r of 2 009 to be roughly in-line with or s lightly better tha n E B I T DA a nd n et income (los s) f or the fourth qua rter of 2 008. Figure 12. Key Developments Source. Capital IQ VALUATION MMOG companies lead market cap charts: Seven companies in our W eb 2.0 universe top US$1 billion in market capitalization (Figure 13). Sixty-seven of the 89 companies have market caps under US$100 million, with 30 under $10 million. Online gaming companies dominate the top of the list with four of the top five by market cap.
    • Page 13 Market C ap (US D m) Tenc ent Holdings L td. Neteas e.com Inc . 2571.8 2134.9 S handa Interac tive Entertainment L td. IA C/InterA c tiv eCorp. 1897.2 G iant Interac tive G roup, Inc . 1588.8 Open Tex t Corp. 1527. 4 G ree, Inc . 1057. 1 828. 6 Modern Times G roup Mtg A B Perf ec t World Co., L td. 550. 8 Mix i, Inc . 476.4 K ings of t Co. L td. 362. 6 Chines e G amer International 351.7 United Online Inc . 325.3 The9 L imited 250.2 233.9 G igaMedia L td. NetDragon WebS of t, Inc . 228. 3 227. 3 NEOWIZ G ames Corporation S hutterf ly , Inc . 180.3 S K Communic ations Co., L td. 162.6 XING A G 162.5 G ungHo Online Entertainment, Inc . 134.9 110.2 G amania Digital Entertainment Co. , DA DA S pA 99. 5 80.9 CDC Corp. G ameOn Co L td. 79.1 Moggle, Inc 72. 6 DigitalTow n, Inc . 68.5 Y edangOnline Corp. 63.8 63.7 B roadWebA s ia Inc . Openw ave S y s tems Inc . 60.0 59.9 A c toz S of t Co., L td. TheS treet. com, Inc . 55.0 NeXplore Corporation 53.0 S park Netw orks , Inc . 47. 9 Ex tens ions , Inc . 46. 3 44. 9 HanbitS of t, Inc . PhotoChannel Netw orks Inc . 42.6 42.2 K aboos e Inc . Tree.Com, Inc . 39.2 OA O R B C Inf ormation S ys tems 34.7 J umpTV Inc . 34.2 G eoS entric Oyj 31.5 20. 6 DXN Holdings B hd Northgate Technologies L imited 20. 6 Ngi G roup Inc . 20. 2 B eyond Commerce, Inc . 19. 6 Dolphin Digital Media, Inc . 19. 5 19. 0 Wiz z ard S of tw are Corporation G ravity Co., Ltd 17. 8 17. 2 A Q Interac tive, Inc . IdeaEdge, Inc . 16. 9 Eolith Co. L td. 16. 8 L ookS mart, L td. 16.5 Webz en Inc . 14.5 14.1 Jumbuck Entertainment Pty L td. Fluid Mus ic Canada, Inc . 13.4 11.4 Quepas a Corp. Frogs ter Interactive Pic tures A G 11.0 S NA P Interac tive, Inc . 10.1 L ingo Media Corporation 9.7 S pectrumDNA , Inc . 9.7 8.9 S ites earc h Corporation Magnitude Inf ormation S y s tems Inc . 8.3 7.3 Worlds .com Inc . CornerWorld Corporation 6.6 A c celeriz e New Media, Inc . 5.9 Y nk K orea Inc . 5.5 UOMO Media, Inc 5.1 4.9 IA S Energy , Inc . B etaw av e Corporation 4.4 3.3 V OIS , Inc . is eemedia Inc . 3.2 MOK O.mobi L imited 3.1 B right Things plc 2.9 Wooz yFly , Inc . 2.6 2.2 Wy nds torm Corporation LiveWorld Inc . 1.2 1.0 Financ ial Media G roup, Inc . Unis erve Communications Corp. 1.0 ZipL oc al Inc . 0.9 B igs tring Corp. 0.6 DigitalPos t Interac tive, Inc . 0.3 0.2 The Parent Company Total S ports Online A S A 0.2 0.1 A s s oc iated Media Holdings Inc . China G atew ay Corporation 0.0 S oc ial Media V enures , Inc . 0.0 Dibz International, Inc . 0.0 S NM G lobal Holdings 0.0 0 500 1,000 1,500 2, 000 2,500 3,000 3, 500 4,000 Figure 13. Market Cap Ranking Source. Capital IQ TEV/Revenue (LTM) averages 3.8x: The overall average TEV/Revenue (LTM) multiple for our group is 3.7x – down from 3.8x last week (Figure 14). However, this is skewed by Gree (3633-TSE) at 33.5x and Bigstring (BSGC-OTCBB) at 27.0x.
    • Page 14 The median is only 1.1x. Note that we exclude multiples greater than 50x. Thirty-three of the companies have multiples under 1.5x. T E V/L T M R evenue (x) 40. 0 33.5 35. 0 30. 0 27.0 25. 0 20.6 20. 0 1 3.1 12. 13.1 15. 0 11.4 3 8.08.0 10. 0 5. 1 3.9 4.6 A vera ge, 3.7 3. 1 3.13.2 3.3 3.8 5. 0 2. 12.22.4 2.6 2.72.7 2.8 1.9 0.90.91.0 1.11.1 1.21.41.5 0.00.00.00.00. 00.1 0.10.10.20.20.2 0. 30.30.40.40.50.6 0.60. 60.60.7 0.80. 80.80.80.90.9 0. 0 N E O WIZ G ames C orporation MO K O .mobi L imited UO MO Media, Inc G a mania Digital E ntertainment C o., Ltd. J umbuck E nterta inment P ty L td. G ungH o O nline E ntertainment, Inc. C hines e G amer Interna tional U nis erve C ommunications C orp. #NUM! O AO R B C Information S y s tems N orthgate T echnologies L imited DXN Holdings B hd F inancial Media G roup, Inc. T ree.C om, Inc. G a meO n C o Ltd. C DC C orp. S K C ommunica tions C o., Ltd. DigitalP os t Intera ctive, Inc. B ey ond C ommerc e, Inc. T he P a rent C ompany Modern T imes G roup Mtg AB G eoS entric O y j S N M G loba l Holdings Lingo Media C orporation C ornerWorld C orporation United O nline Inc . O pen T ex t C orp. P hotoC ha nnel Network s Inc. J umpT V Inc . S NAP Intera ctive, Inc. C hina G atewa y C orporation IAC /InterAc tiveC orp. is eemedia Inc . NetDra gon WebS oft, Inc . G igaMedia Ltd. S pa rk N etwork s , Inc . E olith C o. Ltd. F rogs ter Intera ctiv e P ic tures AG XIN G AG Mix i, Inc . As s ociated Media Holdings Inc . T encent Holdings Ltd. G ree, Inc . B right T hings plc L iveWorld Inc . S ocial Media V enures , Inc . Y nk K orea Inc . ZipLoca l Inc . H anbitS oft, Inc . K aboos e Inc . Y edangO nline C orp. B igs tring C orp. T otal S ports O nline AS A S hutterfly , Inc . K ings oft C o. Ltd. Acceleriz e New Media , Inc . B eta wav e C orporation DADA S pA Ac toz S oft C o. , Ltd. Wiz z ard S oftware C orporation Figure 14. 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 15 shows the average TEV/Revenue multiples by stock exchange. The OTCBB has the largest number of companies (22), trading at an average multiple of 8.4x (down from 10.8x from last week). On a geographic basis, the United States has the most companies (40), trading at an average of 4.4x revenue (also down from 5.1x from last week) (Figure 16). Ten of the companies are Canadian (average 2.8x revenue). Average TEV/LTM Revenue - By Exchange Average TEV/LTM Revenue - By Country 14.0 14.0 12.3 12.3 12.0 12.3 12.0 10.0 10.0 8.4 9.5 8.0 (x) 8.0 5.4 6.0 (x) 5.1 4.6 5.4 4.4 6.0 4.0 5.1 4.6 4.4 2.4 2.3 2.0 1.9 1.5 1.2 1.1 1.1 0.8 0.7 2.0 3.2 2.8 0.9 4.0 0.5 0.2 2.4 0.0 2.0 1.2 1.1 0.9 0.7 OTCNO OTCPK OTCBB GTSM NasdaqGM TSE SEHK HLSE OSE KOSE NasdaqGS OM CM XTRA TSX AMEX KLSE AIM TSXV ASX 0.5 0.3 0.0 Germany Kingdom Japan China Finland United Canada Malaysia Hong Italy South Korea Kong States Taiwan Australia Norway Sweden United 5 1 22 3 1 1 2 2 3 2 9 5 2 1 7 1 11 1 #N/A 5 # Companies 1 6 8 1 1 40 3 10 2 2 9 1 1 #N/A 1 # Companies Figures 15 & 16. TEV/Revenue Ranking (Exchange, Country) Source. Capital IQ TEV/EBITDA (LTM) averages 8.1x: The average multiple for the 31 companies with positive EBITDA (and multiples under 100x) is 8.1x LTM EBITDA (same as last week), led by SNAP Interactive’s (STVI-OTCBB) 38.9x multiple (Figure 17). Seventeen of the companies have EBITDA multiples under 7x. The median multiple is 5.1x.
    • Page 15 T E V/L T M E B IT DA (x) 45. 0 38. 9 40. 0 35. 0 31. 3 30. 0 26. 5 25. 0 20. 0 17. 0 15. 0 12. 9 11.2 A verage, 8. 1 8. 5 8. 2 10. 0 7. 6 7. 2 7. 3 7. 1 7. 0 6. 4 5. 5 4. 7 4.3 4. 1 4.1 4. 0 3. 9 3. 5 3. 2 5. 0 2. 4 2. 2 1. 2 1. 2 0. 9 0.1 0. 0 0. 0 0.1 0. 0 NE O WIZ G ames C orporation J umbuck E ntertainment P ty Ltd. G amania Digital E ntertainment C o. , Ltd. G ungH o O nline E ntertainment, Inc . C hines e G amer International U nis erve C ommunic ations C orp. #NUM! #NUM! O AO R B C Information S y s tems Northgate T ec hnologies L imited DXN Holdings B hd F inanc ial Media G roup, Inc . G ameO n C o L td. C DC C orp. S K C ommunic ations C o. , L td. Modern T imes G roup Mtg AB U nited O nline Inc . O pen T ex t C orp. S NAP Interac tive, Inc . NetDragon WebS oft, Inc . IAC /InterAc tiveC orp. G igaMedia L td. S park Network s , Inc . Mix i, Inc . T enc ent Holdings L td. XING AG Y edangO nline C orp. K aboos e Inc. S hutterfly , Inc. K ings oft C o. L td. DADA S pA Actoz S oft C o. , L td. Figure 17. TEV/EBITDA Ranking Source. Capital IQ TEV/EBITDA (LTM) by country/exchange: Figure 18 shows the average TEV/EBITDA multiples by stock exchange. The OTCBB has the largest number of companies (22), trading at an average multiple of 19.5x, while companies on the TSXV have the highest multiples (31.3x). On a geographic basis, the United States has the most companies (40), trading at an average of 8.7x EBITDA (Figure 19). Ten of the companies are Canadian (average 17.0x EBITDA). Average TEV/LTM EBITDA - By Exchange Average TEV/LTM EBITDA - By Country 35.0 31.3 18.0 17.0 30.0 16.0 14.0 25.0 12.0 11.8 20.0 19.5 (x) 10.0 15.0 11.811.2 (x) 8.7 10.9 8.4 7.6 8.0 7.3 7.6 7.2 7.1 5.5 7.1 10.0 4.8 4.7 5.5 5.5 4.1 4.0 3.9 2.4 6.0 5.0 0.9 0.1 4.1 4.0 4.0 0.0 OTCBB 2.0 GTSM SEHK KOSE OSE NasdaqGS TSE RTS OM CM TSX XTRA KLSE AMEX BSE TSXV ASX 0.9 2.4 0.0 Germany Canada China United Hong Japan Malaysia India Italy South Korea Kong States Taiwan Australia Sweden # Companies 5 22 3 3 2 7 1 2 1 11 5 1 #N/A 2 2 1 #N/A # Companies 10 8 40 3 9 1 2 6 1 1 #N/A 2 1 Figures 18 & 19. TEV/EBITDA Ranking (Exchange, Country) Source. Capital IQ P/E (LTM) averages 13.8x: The average multiple for the 31 companies with positive earnings (and multiples under 100x) is 13.8x LTM EPS (inline with 13.9x last week), led again by TheStreet.com (TSCM-NASDAQ) 58.3x multiple (Figure 20). Seventeen of the companies have P/E multiples under 10x. The median is just 8.1x.
    • Page 16 P /E L T M (x) 70.0 58.3 60.0 56.1 50.0 40.5 40.0 35.8 31.2 30.0 21.8 23.1 20.0 16.3 14.4 12.9 13.0 14.1 A verage, 13.8 10.7 11.5 8.4 8.1 7.2 6.9 10.0 6.5 6.2 6.0 4.1 2.6 2.7 2.4 1.8 1.6 1.7 1.4 1.0 0.7 0.0 NE O W IZ G ames C orporation J umbuck E ntertainment P ty Ltd. G amania Digital E ntertainment C o., Ltd. C hines e G amer International Northgate T echnologies Limited DXN H oldings B hd G iant Interactive G roup, Inc. G ameO n C o Ltd. Modern T imes G roup Mtg AB T he9 Limited Neteas e.com Inc. S handa Interactive E ntertainment Ltd. Ngi G roup Inc. O pen T ex t C orp. S NAP Interactive, Inc. T heS treet.com, Inc. Look S mart, Ltd. Worlds .com Inc. NetDragon W ebS oft, Inc. G igaMedia Ltd. S park Network s , Inc. IAC /InterActiveC orp. Mix i, Inc. T encent H oldings Ltd. XING AG P erfect World C o., Ltd. Y edangO nline C orp. K ings oft C o. Ltd. S hutterfly , Inc. DADA S pA Actoz S oft C o., Ltd. Figure 20. P/E Ranking Source. Capital IQ P/E (LTM) by country/exchange: Figure 21 shows the average P/E multiples by stock exchange. The OTCBB has the largest number of companies (22), trading at an average multiple of 29.4x. On a geographic basis, the United States has the most companies (40), trading at an average of 26.5x earnings (Figure 22). Ten of the companies are Canadian (average 31.2x EPS). Average P/E - By Exchange Average P/E - By Country 35.0 35.0 30.3 31.2 30.0 30.0 29.4 25.0 25.0 26.5 20.0 17.7 17.4 (x) 16.3 20.0 15.0 16.3 12.4 12.2 (x) 13.9 11.9 11.5 15.0 12.4 10.0 11.9 7.2 6.2 4.1 5.0 2.6 10.0 7.2 7.5 1.6 6.2 4.1 0.0 5.0 2.6 OTCBB NasdaqGM GTSM SEHK TSE NasdaqGS KOSE CM OM XTRA AMEX KLSE NYSE ASX 0.0 Germany Canada United Japan China Malaysia Italy South Korea States Taiwan Australia Sweden 5 22 3 2 2 5 11 7 2 2 1 #N/A 1 1 # Companies 10 40 2 3 6 9 8 2 1 #N/A 1 # Companies Figures 21 & 22. P/E Ranking (Exchange, Country) Source. Capital IQ
    • Page 17 UPCOMING EVENTS Upc oming E vents E vent Date L ocation Webs ite E ngage! E xpo Marc h 1 0-11 New Y ork www. enga geex po. co m O ’R e illy E me rging T ec hno logy C onfe re nc e Marc h 9 -1 2 S a n J os e http: //c onferenc es . oreilly . com/etec h T he G artner P ortals , C ontent & C ollaboration S um mit Marc h 1 6-18 O rlando http: //www.ga rtnerinfo.c om/tr/g/pc c 6_04 T he B o ld and the B logging Marc h 2 4 T oronto http: //prof ectio. c om/events /power-bre ak fas t-s emina rs /th e-bold-and-th e-blo gging W eb 2. 0 E xpo Marc h 3 1-April 3 S a n F rancisc o http: //www.web2ex po. c om /s f% 2 0rel= Me sh 200 9 April 7-8 T oronto www. me shco nference . co m Figure 23. Upcoming Events Source. Company reports E arnings C alendar C ompany Date & Time Quarter C onf C all Deta ils NetDra gon W ebS oft, In c. (S E HK : 777) T hurs da y , Ma rch 12, 2009 8: 0 0 A M (E D T ) Q4 200 8 8 00-96-38 44 Figure 24. Earnings Calendar Source. Company reports
    • Page 18 C omparable C ompany Analys is > W eb 2.0 P ric e P erforma nce C ompany Name C urrenc y Tic ker E xchange US D Market C ap ($m) C urrent Price 1 Wk 1 Mth 3 Mth 6 Mth 1 Yr 52 W eek Acce leri ze N ew Medi a, I nc. US D AC L Z O T C BB 5. 9 0 .2 2 -29 . 0% -3 7. 1% - 45. 0 % -5 6. 9% -69. 4% -71 . 8% Actoz S oft C o. , Ltd. KRW A0 527 90 K OS E 5 9. 9 10 ,5 00 .0 0 0 .5 % -1 0. 6% 7. 8% 15 .4 % 2 2. 8% -25 . 5% AQ Inte ractive, Inc. J PY 383 8 TS E 1 7. 2 31 ,3 50 .0 0 -4. 7% -3. 5% -5 .0 % -7 3. 4% -81. 7% -87 . 3% As s ociated Me dia Holdings I nc. US D AS MH O T C PK 0. 1 0 .0 0 0 .0 % -7 2. 0% - 53. 3 % -9 3. 6% 2 7. 3% -97 . 2% Bi gs tring C orp. US D BS GC O T C BB 0. 6 0 .0 1 -27 . 3% -2 9. 4% - 45. 5 % -8 1. 5% -94. 0% -94 . 6% Be ta wave C orporation US D BW A V O T C BB 4. 4 0 .1 5 -21 . 1% -1 6. 7% -6 .3 % -4 8. 3% -54. 5% -68 . 1% Be yond C omme rce, Inc. US D BY OC O T C BB 1 9. 6 0 .4 8 -25 . 0% -4 0. 0% - 43. 5 % -8 0. 8% -58. 3% -85 . 5% Br ight T hings plc G BP AIM:B G T A IM 2. 9 0 .0 2 0 .0 % -1 8. 2% 27 . 5% 2. 0% -49. 0% -64 . 0% Br oadW ebA s ia Inc. US D BW B A O T C PK 6 3. 7 0 .7 5 -25 . 7% -2 5. 7% - 25. 7 % -4 2. 3% NM -75 . 0% C DC C orp. US D C HIN. A Na sdaqGS 8 0. 9 0 .7 5 -1. 3% -1 2. 8% - 14. 8 % -6 9. 3% -80. 8% -82 . 1% C hina G ateway C orpora tion US D C GW Y O T C BB 0. 0 0 .0 0 -33 . 3% -3 3. 3% - 80. 0 % -9 4. 4% -99. 7% -99 . 7% C hines e G amer International TW D GT S M: 308 3 GTSM 351 . 7 1 44 .0 0 8 .3 % 29. 1% 61 . 8% 79 .6 % 4 4. 7% -1. 7% C ornerW orld C orporation US D CW R L O T C BB 6. 6 0 .1 4 -6. 7% -6 5. 9% - 68. 9 % -7 7. 0% -88. 8% -88 . 8% DAD A S pA E UR C M:DA CM 9 9. 5 4 .8 5 -3. 0% -2 0. 8% - 29. 2 % -5 7. 2% -63. 1% -70 . 0% DXN Holdings Bhd MYR DXN K LS E 2 0. 6 0 .3 3 4 .8 % -7. 0% - 17. 5 % -1 5. 4% -34. 0% -41 . 1% Dibz International, Inc. US D DIB Z O T C PK 0. 0 0 .0 0 -90 . 0% -9 0. 0% - 90. 0 % -9 8. 0% -98. 0% -98 . 0% Digita lP os t I nteractive, Inc. US D DGL P O T C BB 0. 3 0 .0 0 -33 . 3% -7 1. 4% - 80. 0 % -9 2. 7% -98. 4% -98 . 8% Digita lT own, I nc. US D DGT W O T C BB 6 8. 5 2 .5 2 -8. 4% 68. 0% 26 . 0% -3 7. 0% -4. 9% -58 . 7% Dolphin Digita l Me dia , Inc. US D DPDM O T C BB 1 9. 5 0 .4 0 -11 . 1% -3 3. 3% - 38. 5 % -3 8. 5% NM -64 . 6% E olith C o. Ltd. KRW A0 410 60 K OS E 1 6. 8 5 55 .0 0 6 .7 % 4 .7 % 3. 7% -1 8. 4% -52. 8% -60 . 8% E xtensions, Inc. US D E XT I O T C PK 4 6. 3 0 .4 9 14 5. 0% 14 5. 0% 8 33 .3 % 3 90. 0 % 22 6. 7% -51 . 5% F ina ncia l Me dia Group, I nc. US D F NGP O T C BB 1. 0 0 .0 2 -50 . 0% 36. 4% - 78. 6 % -9 7. 1% -92. 1% -98 . 5% F luid Mus ic C anada , Inc. CAD T S X :F MN TS X 1 3. 4 0 .3 3 -34 . 0% -4 1. 1% 26 . 9% -7 9. 2% NM -83 . 8% F rogs te r Inte ractive P icture s A G E UR FR G XT R A 1 1. 0 3 .7 0 -8. 6% -2 3. 6% - 11. 7 % -3 5. 4% -25. 1% -51 . 6% Ga mania Digital E nterta inme nt C o. , L td. TW D 618 0 GTSM 110 . 2 25 .2 5 1 2. 7% 12. 2% 80 . 4% 21 .4 % -11. 4% -31 . 7% Ga meO n C o L td. J PY 381 2 TS E 7 9. 1 81 ,0 00 .0 0 -12 . 9% -3 4. 1% - 39. 6 % -3 2. 6% -24. 3% -50 . 5% GeoS entric O yj E UR GE O1 V HL S E 3 1. 5 0 .0 4 3 3. 3% 0 .0 % 33 . 3% -3 3. 3% -42. 9% -50 . 0% Giant Inte ractive G roup, Inc. US D GA NY S E 1, 58 8. 8 7 .0 3 1 1. 8% 14. 5% 18 . 0% -1 1. 7% -29. 6% -59 . 1% GigaMe dia L td. US D GIGM Na sdaqGS 233 . 9 4 .3 3 -14 . 9% -3 9. 8% -5 .7 % -5 9. 0% -72. 5% -78 . 2% Gravity C o., Ltd US D GR V Y Na sdaqGM 1 7. 8 0 .6 4 -7. 2% -1 0. 9% 12 . 3% -4 8. 4% -61. 4% -68 . 0% Gree, Inc. J PY T S E : 363 2 TS E 1, 05 7. 1 4 ,6 90 .0 0 6 .6 % -1 7. 0% NM NM NM -25 . 6% GungHo Online E ntertainme nt, Inc. J PY 376 5 OSE 134 . 9 1 16 ,8 00 .0 0 -0. 2% 16. 8% 29 . 6% -3 9. 8% -30. 1% -73 . 1% HanbitS oft, Inc. KRW A0 470 80 K OS E 4 4. 9 3 ,1 65 .0 0 4 .1 % -8. 0% -0 .8 % -1 1. 1% -31. 9% -54 . 9% IA C /Inte rA ctive C orp. US D IA C I Na sdaqGS 1, 89 7. 2 13 .4 6 -9. 1% -9. 0% - 20. 6 % -2 1. 3% -67. 3% -73 . 3% IA S E ne rgy, Inc. US D IA S C . A O T C BB 4. 9 0 .0 7 7 5. 0% 18 0. 0% 1 33 .3 % -7 4. 1% -75. 0% -80 . 0% IdeaE dge, Inc. US D OT C B B :I DA E O T C BB 1 6. 9 0 .4 0 -7. 0% -1 3. 0% - 73. 0 % -8 4. 3% -66. 7% -85 . 9% is ee media Inc. CAD IE E T S XV 3. 2 0 .0 8 -15 . 8% 0 .0 % 1 00 .0 % -5 0. 0% -75. 4% -81 . 8% J umbuck E ntertainme nt P ty Ltd. A UD AS X: J MB ASX 1 4. 1 0 .4 5 0 .0 % 12. 5% 2. 3% -1 0. 0% -35. 7% -35 . 7% J umpT V Inc. CAD T S X :J T V TS X 3 4. 2 0 .3 9 8 .3 % -2 2. 0% 34 . 5% -4 8. 0% -41. 8% -69 . 5% K a boos e Inc. CAD T S X :K AB TS X 4 2. 2 0 .3 9 -3. 7% -4. 9% 50 . 0% -4 8. 0% -71. 3% -75 . 9% K i ngs oft C o. Ltd. HK D 388 8 S E HK 362 . 6 2 .6 2 4 .4 % -1 2. 7% 6. 1% -1 1. 2% 1 8. 0% -39 . 2% Lingo Me dia C orpora tion CAD T S X V: LM T S XV 9. 7 0 .9 8 3 .2 % -6. 7% -2 .0 % -4 3. 4% -34. 7% -55 . 5% Live World Inc. US D LV WD O T C PK 1. 2 0 .0 4 -33 . 3% 0 .0 % 1 66 .7 % -7 8. 9% -80. 0% -94 . 7% LookS mart, Ltd. US D LO OK Na sdaqGM 1 6. 5 0 .9 7 -17 . 8% -2 9. 2% - 37. 0 % -6 4. 5% -72. 4% -79 . 8% Magnitude Informa ti on S ys tems I nc. US D MAG Y O T C BB 8. 3 0 .0 2 5 .6 % -3 4. 5% - 17. 4 % 35 .7 % -44. 1% -45 . 7% Mixi, Inc. J PY 212 1 TS E 476 . 4 3 08 ,0 00 .0 0 -14 . 2% -3 6. 0% - 50. 3 % -6 0. 8% -65. 4% -72 . 0% Mode rn T imes Group Mtg A B S EK MT G B OM 828 . 6 1 14 .5 0 -2. 6% -2 3. 7% - 19. 2 % -6 3. 7% -71. 2% -74 . 8% Moggle, Inc US D MMOG O T C BB 7 2. 6 2 .0 0 0 .0 % 0 .0 % 33 . 3% NM NM 0 .0 % MOK O. mobi L imited A UD MK B ASX 3. 1 0 .0 6 2 0. 0% 50. 0% 2 75 .0 % 76 .5 % 5 0. 0% -15 . 5% NE O W IZ G ame s C orpora tion KRW A0 956 60 K OS E 227 . 3 36 ,5 50 .0 0 2 0. 4% 51. 7% 1 11 .3 % 64 .3 % 6 .6 % -8. 6% NetDra gon We bS oft, Inc. HK D 777 S E HK 228 . 3 3 .3 5 1 4. 3% 17. 1% -5 .6 % -3 5. 5% -65. 4% -75 . 4% Netea s e. com Inc. US D NT E S Na sdaqGS 2, 57 1. 8 20 .9 0 2 .2 % 1 .7 % 6. 6% -8 .3 % 3 .6 % -23 . 0% NeXplore C or por ation US D NXP C O T C PK 5 3. 0 0 .9 5 4 6. 2% 11. 8% - 24. 0 % 90 .0 % NM -34 . 5% Ngi G roup Inc. J PY 249 7 TS E 2 0. 2 16 ,2 00 .0 0 -22 . 8% -4 7. 2% - 68. 7 % -8 2. 6% -88. 4% -90 . 6% Northgate T e chnologies L imited INR 590 05 7 B SE 2 0. 6 30 .6 5 -10 . 4% -2 1. 7% - 37. 8 % -8 8. 8% -92. 2% -93 . 5% Open T e xt C orp. US D OT E X Na sdaqGS 1, 52 7. 4 29 .4 3 -3. 7% -1 7. 7% 6. 2% -6 .9 % -2. 3% -24 . 7% Openwa ve S ys tems I nc. US D OP W V Na sdaqGS 6 0. 0 0 .7 2 -9. 0% -2. 0% 35 . 8% -4 6. 7% -63. 8% -74 . 8% Pe rfect W orld C o., Ltd. US D PW R D Na sdaqGS 550 . 8 10 .4 4 1 7. 2% -3 3. 2% - 39. 8 % -5 4. 9% -58. 2% -68 . 9% PhotoC hannel Ne tworks Inc. CAD T S X V: PN T S XV 4 2. 6 1 .6 5 -4. 6% 1 .2 % 0. 0% -4 5. 0% -50. 9% -60 . 2% Quepas a C orp. US D QP S A Na sdaqC M 1 1. 4 0 .9 0 -24 . 3% -4 9. 2% - 55. 0 % -7 3. 4% -68. 9% -74 . 0% OA O R B C Informa ti on S ys tems US D R BC I R TS 3 4. 7 0 .2 5 -16 . 7% -1 3. 8% - 69. 9 % -9 6. 1% -97. 6% -97 . 6% S handa I ntera ctive E nte rtainment L td. US D S NDA Na sdaqGS 2, 13 4. 9 30 .7 7 0 .0 % -0. 9% 5. 8% 11 .8 % 8 .4 % -19 . 5% S hutterfly, Inc. US D SFLY Na sdaqGS 180 . 3 7 .1 7 -8. 5% -1 6. 6% -0 .6 % -3 0. 1% -55. 8% -60 . 1% S K C ommunications C o. , Ltd. KRW A0 662 70 K OS E 162 . 6 6 ,1 10 .0 0 -0. 8% -2 5. 5% 13 . 4% -4 3. 9% -59. 1% -69 . 0% S NA P Inter active, Inc. US D STV I O T C BB 1 0. 1 0 .9 5 -5. 0% -5. 0% 28 . 6% 6. 7% 1 8. 8% -13 . 6% S NM G lobal Holdings US D S NMN O T C PK 0. 0 0 .0 0 -66 . 7% 15 0. 0% - 99. 3 % -9 9. 8% -1 00 .0 % -1 00 .0 % S ocial Me dia V enures , Inc. US D S MV I O T C PK 0. 0 1 .2 0 -4. 0% -7. 0% 11 . 1% 3 80. 0 % NM -76 . 0% S i te s ear ch C orpora tion US D STP C O T C BB 8. 9 1 .1 0 NM NM NM NM NM 0 .0 % S park Ne tworks , Inc. US D LO V A ME X 4 7. 9 2 .3 3 -4. 5% 1 .3 % - 13. 7 % -4 6. 5% -41. 9% -50 . 7% S pectrumDNA, Inc. US D S P XA O T C BB 9. 7 0 .2 0 11 0. 5% 10 0. 0% -4 .8 % -6 6. 1% NM -66 . 7% T encent Holdings Ltd. HK D 700 S E HK 10 ,9 49 .3 47 .2 5 7 .0 % 3 .1 % -3 .0 % -1 9. 9% 1 .0 % -34 . 4% T he P ar ent C ompany US D K IDS . Q O T C PK 0. 2 0 .0 1 -37 . 5% -6 1. 5% - 98. 4 % -9 9. 4% -99. 8% -99 . 8% T he 9 Limited US D NC T Y Na sdaqGS 250 . 2 9 .3 3 -13 . 5% -3 7. 1% - 22. 6 % -4 5. 0% -50. 8% -67 . 3% T he S tre et.com, I nc. US D TSCM Na sdaqGM 5 5. 0 1 .8 1 1 .7 % -3 8. 4% - 47. 2 % -6 9. 3% -76. 8% -80 . 9% T otal S ports O nli ne A S A NO K T OS O O T C NO 0. 2 0 .0 4 0 .0 % 0 .0 % - 20. 0 % -2 0. 0% -33. 3% -60 . 0% T ree . C om, Inc. US D TR EE Na sdaqGM 3 9. 2 3 .9 3 0 .0 % 0 .5 % 1 01 .5 % -4 9. 7% NM -64 . 6% Unis e rve C ommunications C or p. CAD T S X V: US S T S XV 1. 0 0 .0 5 0 .0 % -5 0. 0% 25 . 0% -7 6. 2% -87. 5% -88 . 9% Unite d Online Inc. US D UNT D Na sdaqGS 325 . 3 3 .9 6 -10 . 0% -3 2. 4% - 37. 6 % -6 2. 2% -63. 3% -68 . 3% UOMO Medi a, I nc US D UOMO O T C BB 5. 1 0 .0 6 -14 . 3% -2 5. 0% - 53. 8 % -8 0. 6% -88. 2% -92 . 5% VO IS , Inc. US D VO IS O T C BB 3. 3 0 .4 0 -46 . 7% -4 6. 7% - 46. 7 % -8 1. 3% NM -92 . 9% W ebzen Inc. US D WZE N Na sdaqGM 1 4. 5 1 .2 2 3 7. 1% -1 0. 9% 79 . 4% -3 4. 1% -58. 9% -72 . 6% W izz a rd S oftwa re C orporation US D WZE A ME X 1 9. 0 0 .4 2 -22 . 2% -4 0. 0% - 54. 8 % -6 6. 4% -80. 7% -82 . 6% W oozyF ly, Inc. US D WZY F O T C BB 2. 6 0 .1 5 0 .0 % 0 .0 % NM NM NM -96 . 3% W orlds .com Inc. US D WD DD O T C BB 7. 3 0 .1 4 -22 . 2% -3 6. 4% - 36. 4 % -3 6. 4% -60. 0% -68 . 9% W ynds torm C orporation US D WY ND O T C BB 2. 2 0 .1 2 0 .0 % 0 .0 % 0. 0% -4 5. 5% NM -85 . 9% XI NG A G E UR O1 BC XT R A 162 . 5 24 .6 8 -14 . 2% -2 0. 4% - 14. 5 % -2 2. 9% -37. 8% -47 . 1% Ye dangO nline C orp. KRW A0 527 70 K OS E 6 3. 8 6 ,3 00 .0 0 -5. 3% -7. 1% -3 .1 % -2 1. 0% -36. 4% -49 . 8% Ynk K or ea Inc. KRW A0 237 70 K OS E 5. 5 3 ,4 60 .0 0 -2. 4% -1 2. 0% - 27. 2 % -6 6. 9% -81. 7% -82 . 6% ZipL ocal Inc. CAD T S X V: ZIP T S XV 0. 9 0 .0 2 20 0. 0% -2 5. 0% 50 . 0% -8 1. 3% -92. 3% -92 . 9% High 20 0. 0% 18 0. 0% 8 33 .3 % 3 90. 0 % 22 6. 7% 0 .0 % Low -90 . 0% -9 0. 0% - 99. 3 % -9 9. 8% -1 00 .0 % -1 00 .0 % Average 312.5 -1.3% -8.3% 6.4% -33.1% -47.6% -65.2% Medi an -3. 9% -1 2. 7% -5 .6 % -4 6. 7% -59. 0% -69 . 5% Figure 25. Price Performance Source. Capital IQ
    • Page 19 Comparable C ompany Analys is > Web 2.0 V aluation Multiples P ri mar y US D Ma rket T E V/LT M T E V/ NT M T E V/L T M TE V /NT M C ompany Na me S ec tor C ountry E xc hange T ic ke r C a p ($ m) R e venue R e venue E B ITD A E B IT DA P /L T M E P S P /NTM E P S P /TangB V Acce leri ze N ew Medi a, Inc. Dir ect Ma rketing United S tates OTCB B A C LZ 5. 9 3. 2x - - - - - - Actoz S oft C o. , Ltd. G aming S outh Korea K OS E A0 52 790 5 9. 9 0. 8x - 4 . 3x - 1 3. 0x - 1. 3x AQ Inte ractive, Inc. G aming Ja pa n TS E 3838 1 7. 2 - - - - - - 0. 3x As s ociated Media Holdings I nc. Mobile United S tates OTCP K A S MH 0. 1 8. 0x - - - - - - B i gs tring C orp. Ins tant Mes s aging United S tates OTCB B B S GC 0. 6 27 .0 x - - - - - - B e ta wave C orporation Media United S tates OTCB B BW AV 4. 4 2. 4x - - - - - - B e yond C omme rce, Inc. S ocia l N etworking United S tates OTCB B B Y OC 1 9. 6 20 .6 x - - - - - - B r ight T hi ngs plc S ocia l N etworking United K ingdom A IM A IM: B GT 2. 9 12 .3 x - - - - - - B r oadW ebA s ia Inc. S ocia l N etworking United S tates OTCP K BW B A 6 3. 7 - - - - - - - C DC C orp. G aming Hong K ong Na s daqGS C HI N.A 8 0. 9 0. 3x 0. 3x 7 . 3x 6. 1x - 11 . 2x - C hina G ateway C orpora tion Mobile United S tates OTCB B C G WY 0. 0 0. 0x - - - - - - C hines e G amer International G aming T aiwa n G TSM G T S M: 30 83 35 1. 7 8. 0x - 17 .0 x - 2 1. 8x - 7. 1x C ornerW orld C orporation C ontent United S tates OTCB B CW R L 6. 6 13 .1 x - - - - - - DAD A S pA S ocia l N etworking Italy CM C M:D A 9 9. 5 0. 7x - 4 . 1x - 6. 2x - - DXN Holdings B hd S ocia l N etworking Mala ys ia K LS E DXN 2 0. 6 0. 5x - 4 . 0x - 4. 1x - 0. 5x Dibz International, Inc. S NS A pps United S tates OTCP K DI B Z 0. 0 - - - - - - - Digi ta lP os t Interactive, Inc. C ontent United S tates OTCB B DG LP 0. 3 2. 8x - - - - - - Digi ta lT own, I nc. S ocia l N etworking United S tates OTCB B DG T W 6 8. 5 - - - - - - - Dolphin Digita l Media , Inc. S ocia l N etworking United S tates OTCB B DP DM 1 9. 5 - - - - - - - E olith C o. Ltd. G aming S outh Korea K OS E A0 41 060 1 6. 8 1. 0x - - - - - - E xtensions, Inc. C ontent United S tates OTCP K E XT I 4 6. 3 - - - - - - - F ina ncia l Media Group, I nc. Dir ect Ma rketing United S tates OTCB B F NGP 1. 0 0. 0x - 0 . 1x - - - - F luid Mus ic C anada , Inc. Media United S tates TS X T S X: F MN 1 3. 4 - - - - - - 1. 1x F rogs te r Interactive P icture s A G G aming Ge rma ny XT R A FR G 1 1. 0 2. 1x - - - - - 1. 1x Ga mania Digital E nterta inme nt C o. , L td. G aming T aiwa n G TSM 6180 11 0. 2 0. 8x - 4 . 7x - 1 2. 9x - 1. 7x Ga meO n C o L td. G aming Ja pa n TS E 3812 7 9. 1 0. 3x - 1 . 2x - 8. 1x - 1. 1x Ge oS entric O yj Mobile Finla nd HL S E GE O1 V 3 1. 5 5. 1x - - - - - 7. 0x Gi ant Inte ractive G roup, Inc. G aming C hina NY S E GA 1, 58 8. 8 - - - - 1. 6x 11 . 8x 0. 3x Gi gaMe dia L td. G aming T aiwa n Na s daqGS GIGM 23 3. 9 0. 8x 0. 8x 3 . 5x 3. 3x 6. 9x 6. 6x 2. 2x Gr avity C o., Ltd G aming S outh Korea Na s daqGM GR V Y 1 7. 8 - - - - - - - Gr ee, Inc. S ocia l N etworking Ja pa n TS E T S E : 363 2 1, 05 7. 1 33 .5 x - - - - - 1 6. 4x GungHo Online E nte rtainme nt, I nc. Media Ja pa n OSE 3765 13 4. 9 1. 1x - 7 . 2x - - - 4 1. 9x HanbitS oft, Inc. G aming S outh Korea K OS E A0 47 080 4 4. 9 0. 6x - - - - - 1. 7x IA C /Inte rA ctive C orp. Media United S tates Na s daqGS IAC I 1, 89 7. 2 0. 1x 0. 1x 2 . 2x 0. 9x 1 4. 1x 21 . 4x 0. 9x IA S E ne rgy, I nc. V ide o C anada OTCB B IA S C . A 4. 9 - - - - - - - IdeaE dge, Inc. S ocia l N etworking United S tates OTCB B OT C B B :IDA E 1 6. 9 - - - - - - 1 2. 4x is ee media I nc. C ontent C anada T S XV IE E 3. 2 0. 6x - - - - - 1. 1x J umbuck E ntertainment P ty Ltd. S ocia l N etworking Austra lia ASX AS X: J MB 1 4. 1 0. 9x - 2 . 4x - 7. 2x - 1. 8x J umpT V I nc. V ide o C anada TS X T S X:J T V 3 4. 2 3. 8x - - - - - 2. 5x K a boos e Inc. C ontent C anada TS X T S X :K AB 4 2. 2 0. 9x 0. 7x 11 .2 x 5. 7x - - - K i ngs oft C o. Ltd. G aming C hina S E HK 3888 36 2. 6 2. 6x - 7 . 6x - 1 0. 7x - 2. 4x Lingo Media C orpora tion O nline Learning C anada T S XV T S X V: LM 9. 7 3. 3x - - - - - - Live World I nc. S ocia l N etworking United S tates OTCP K LV W D 1. 2 0. 0x - - - - - 0. 6x LookS mart, Ltd. Dir ect Ma rketing United S tates Na s daqGM LO OK 1 6. 5 - - - - 2. 4x - 0. 6x Magnitude Informa tion S ys tems Inc. S ocia l N etworking United S tates OTCB B MA GY 8. 3 - - - - - - - Mixi, I nc. S ocia l N etworking Ja pa n TS E 2121 47 6. 4 3. 1x - 8 . 2x - 2 3. 1x - 3. 7x Modern T imes Gr oup Mtg AB Media S weden OM MT G B 82 8. 6 0. 9x 0. 9x 5 . 5x 6. 5x 2. 6x 6. 3x - Moggle, Inc G aming United S tates OTCB B MMOG 7 2. 6 - - - - - - - MOK O. mobi L imited S ocia l N etworking Austra lia ASX MK B 3. 1 1. 5x - - - - - 2. 1x NE O W IZ G ame s C orpora tion G aming S outh Korea K OS E A0 95 660 22 7. 3 1. 9x - 7 . 0x - 1 4. 4x - 8. 5x NetDra gon We bS oft, Inc. G aming C hina S E HK 777 22 8. 3 0. 6x - 1 . 2x - 6. 5x - 1. 3x Netea s e. com Inc. G aming C hina Na s daqGS NT E S 2, 57 1. 8 - - - - 1. 7x 10 . 9x 0. 5x NeXplore C or por ation C ontent United S tates OTCP K NXP C 5 3. 0 - - - - - - - Ngi G roup Inc. Media Ja pa n TS E 2497 2 0. 2 - - - - 6. 0x - 0. 3x Northgate T e chnologies L imited Dir ect Ma rketing India B SE 590057 2 0. 6 0. 2x - 0 . 9x - 1. 4x - - Open T e xt C orp. C ollabora tion C anada Na s daqGS OTEX 1, 52 7. 4 2. 2x 1. 9x 8 . 5x 7. 4x 3 1. 2x 11 . 5x - Openwa ve S ys tems Inc. Mobile United S tates Na s daqGS OPW V 6 0. 0 - - - - - 24 . 0x 0. 8x P e rfect W orld C o., Ltd. G aming C hina Na s daqGS P WR D 55 0. 8 - - - - 1. 0x 5. 0x 0. 3x P hotoC hannel Ne tworks Inc. Digital Imaging C anada T S XV T S XV : PN 4 2. 6 2. 7x 1. 8x - 5. 7x - 21 . 3x 9. 5x Quepas a C orp. S ocia l N etworking United S tates Na s daqC M QP S A 1 1. 4 - - - - - - 4. 7x OA O R B C Informa tion S ys tems Media R us s ia R TS R BC I 3 4. 7 0. 0x - 0 . 1x - - - - S handa Intera ctive E ntertainment L td. G aming C hina Na s daqGS S ND A 2, 13 4. 9 - - - - 1. 8x 10 . 5x 0. 8x S hutterfly, I nc. Digital Imaging United S tates Na s daqGS S F LY 18 0. 3 0. 4x 0. 5x 3 . 2x 2. 9x 4 0. 5x - 1. 0x S K C ommunications C o. , Ltd. S ear ch S outh Korea K OS E A0 66 270 16 2. 6 1. 2x - 12 .9 x - - - - S NA P Inter active, Inc. O nline Dating United S tates OTCB B S TV I 1 0. 1 3. 9x - 38 .9 x - 5 6. 1x - 7. 4x S NM G lobal Holdings Media United S tates OTCP K S NMN 0. 0 1. 1x - - - - - - S ocial Me dia V enure s , Inc. S ocia l N etworking United S tates OTCP K S MV I 0. 0 0. 1x - - - - - - S i te s ear ch C orpora ti on S ocia l N etworking United S tates OTCB B S TP C 8. 9 - - - - - - 8. 4x S park Ne tworks , Inc. S ocia l N etworking United S tates A ME X LO V 4 7. 9 0. 8x - 3 . 9x - 1 1. 5x - - S pectrumDNA, Inc. Media United S tates OTCB B S P XA 9. 7 - - - - - - 1 0. 4x T encent Holdings Ltd. P ortal C hina S E HK 700 10, 94 9. 3 13 .1 x - 26 .5 x - 3 5. 8x - 1 4. 2x T he P ar ent C ompany Media United S tates OTCP K KI DS .Q 0. 2 0. 2x - - - - - - T he 9 Lim ited G aming C hina Na s daqGS NC T Y 25 0. 2 - - - - 0. 7x 6. 2x 0. 1x T he S tre et.com, Inc. Media United S tates Na s daqGM TS CM 5 5. 0 - - - - 5 8. 3x - 0. 6x T otal S ports O nli ne A S A Media Norwa y O T C NO TOS O 0. 2 4. 6x - - - - - - T ree . C om, Inc. P ortal United S tates Na s daqGM TR E E 3 9. 2 0. 2x 0. 2x - - - - 0. 6x Unis e rve C ommunications C orp. S ocia l N etworking C anada T S XV T S XV :US S 1. 0 0. 1x - 31 .3 x - - - - United Online Inc. Media United S tates Na s daqGS UNT D 32 5. 3 0. 9x 0. 6x 4 . 1x 2. 7x - 5. 5x - UOMO Media, I nc Media C anada OTCB B UO MO 5. 1 11 .4 x - - - - - - VO IS , Inc. S ocia l N etworking United S tates OTCB B VO IS 3. 3 - - - - - - 7. 5x W ebz en Inc. G aming S outh Korea Na s daqGM W ZE N 1 4. 5 - - - - - - 0. 0x W izz a rd S oftwa re C orporation P odca s ti ng United S tates A ME X W ZE 1 9. 0 3. 1x - - - - - - W ooz yF ly, Inc. S ocia l N etworking United S tates OTCB B W ZY F 2. 6 - - - - - - - W orlds .com Inc. C ontent United S tates OTCB B W DDD 7. 3 - - - - 2. 7x - - W ynds torm C orporation C ontent United S tates OTCB B W YN D 2. 2 - - - - - - - XI NG A G S ocia l N etworking Ge rma ny XT R A O 1B C 16 2. 5 2. 7x - 7 . 1x - 1 6. 3x - 4. 4x Y e dangO nli ne C orp. G aming S outh Korea K OS E A0 52 770 6 3. 8 1. 4x - 6 . 4x - 8. 4x - 3. 9x Y nk K or ea I nc. G aming S outh Korea K OS E A0 23 770 5. 5 0. 4x - - - - - - ZipL ocal I nc. O nline Dire ctory C anada T S XV T S X V: ZI P 0. 9 0. 6x - - - - - - High 10, 94 9. 3 33 .5 x 1. 9x 38 .9 x 7. 4x 5 8. 3x 24 . 0x 4 1. 9x Low 0. 0 0. 0x 0. 1x 0 . 1x 0. 9x 0. 7x 5. 0x 0. 0x Average 312.5 3.7x 0.8x 8.1x 4.6x 13.8x 11.7x 4.4x Median 2 0. 2 1. 1x 0. 7x 5 . 1x 5. 7x 8. 1x 10 . 9x 1. 7x Figure 26. Valuation Comparison Source. Capital IQ
    • Page 20 C omparable C ompany Analys is > Web 2.0 S ummary by C ountry C ompany Na me US D Market C a p ($ m) Avg US D Mark et C ap ($m ) US D L T M Total R ev ($m ) US D L T M Total E B I TDA ($m) E B IT DA % 40 18 , 636 . 7 2, 329. 6 3 , 118 . 8 1, 40 4.7 4 8.6% U nited S tates C h ina C hina U nited S ta tes C hina S wede n 10 3 , 097 . 9 828. 6 2 , 770 . 5 23 1. 2 4 7.1% C an ada Un ite d S tate s S weden C hina S we den U nite d K ingdom 9 1 , 785 . 0 297. 5 1 , 446 . 0 18 6. 3 3 6.0% S outh K o re a J apan J apa n S we den C a na da F inla nd 8 1 , 671 . 2 231. 9 884 . 0 12 6. 3 3 1.0% C hina C a nada T a iwa n C ana da J apan G erm any 6 828 . 6 167. 1 487 . 1 12 6. 3 2 7.0% J a pa n S wede n C a na da J apa n U nited S tates J a pa n T a iwa n 3 T a iwa n 695 . 8 Ita ly 99. 5 S outh K orea 466 . 4 T aiwan 8 3.4 H ong K on g 1 6.0% 2 613 . 1 86. 7 428 . 1 5 4.3 1 0.1% A us tra lia S outh K orea G erma ny H ong K ong S outh K o re a R uss ia 2 173 . 5 80. 9 344 . 3 3 4.3 9 . 5% G erma ny G erma ny H ong K ong T aiwa n Ita ly U nite d S tate s 1 99 . 5 77. 4 214 . 6 2 2.9 6 . 8% Norway I ta ly U nited S tates Italy Ind ia C a nada 1 80 . 9 68. 1 132 . 6 1 8.8 2 . 7% H on g K ong Ho ng K on g S outh K o re a R us s ia H ong K ong C hina 1 34 . 7 34. 7 130 . 0 1 7.3 -0 . 8% F inla nd R u ss ia R us s ia Ind ia R us s ia T a iwa n 1 31 . 5 31. 5 74 . 7 1 2.3 -5 . 3% Ita ly F inland F inla nd Ma la ysia G erma ny I ndia 1 20 . 6 20. 6 44 . 8 9.9 -6 . 8% U nited K ing dom M ala ys ia Ma lay s ia G erman y Ma lays ia S outh K orea 1 20 . 6 20. 6 12 . 6 2.3 -42 . 5% In dia I ndia In dia Austra lia A us tra lia A us tra lia S weden 1 A us tralia 17 . 2 A us tralia 8. 6 F in la nd 5 .2 Norway -1.0 Norwa y -91 . 6% 1 2.9 2. 9 1 .9 -1.6 NM R us s ia Un ite d K in gdom U nited K ing dom Norwa y U nited K ingd om I ta ly 1 0.2 0. 2 0 .2 -1 2.0 NM Ma lay s ia No rwa y Norway U nited K ingd om F in lan d M a la ys ia G rand Total 89 G rand T ota l 27 ,809.9 G ra nd Total 312. 5 G rand Total 130 .4 G rand T otal 2,31 5.8 G ra nd Tota l 7 .3% Figure 27. Comparison by Country Source. Capital IQ C omparable C ompany Analys is > Web 2.0 S ummary by Exc hange C ompany Na me US D Market C a p ($ m) Avg US D Mark et C ap ($m ) US D L T M Total R ev ($m ) US D L T M Total E B I TDA ($m) E B IT DA % 22 11 , 540 . 2 3, 846. 7 1 , 446 . 0 1, 22 9.2 4 8.6% OTCB B S E HK S E HK OM Na s da qG S OM 11 9 , 812 . 7 1, 588. 8 487 . 1 52 9. 8 4 7.1% Nas da qG S Na sdaqG S NY S E Nas da qG S S E HK A IM 9 1 , 650 . 0 892. 1 368 . 4 23 1. 2 3 6.3% OTCP K TS E Na s da qG S S E HK OM A ME X 7 1 , 588 . 8 828. 6 233 . 1 14 4. 3 3 6.0% K OS E NY S E OM NY S E NY S E HL S E 5 828 . 6 330. 0 214 . 6 11 1. 2 3 1.0% TS E OM TS E CM TSE XTR A Nas da qG M 5 K OSE 580 . 8 G TSM 230. 9 RTS 132 . 6 K OS E 5 0.1 TS E 2 7.0% 5 461 . 8 134. 9 130 . 0 3 5.5 2 3.9% T S XV GTS M OSE BS E GTSM GTS M 3 278 . 3 99. 5 103 . 2 3 4.3 1 6.7% S E HK OTCB B CM OSE CM T S XV 3 173 . 5 86. 7 84 . 0 2 2.9 1 4.7% TS X XTR A XT R A Nas da qG M BSE NY S E 2 164 . 5 83. 0 76 . 8 1 7.3 1 3.7% A ME X OTCP K K OS E TSE RTS Na sda qG M 2 143 . 0 34. 7 74 . 7 1 5.2 1 1.1% XT R A Na sdaqG M RTS KLSE OSE OTCP K 2 134 . 9 33. 4 71 . 9 1 2.3 1 0.1% ASX OS E A ME X GTSM XT R A R TS 2 99 . 5 31. 5 59 . 5 9.9 9 . 4% GTSM CM HL S E KOS E K LS E Na sda qC M 1 89 . 8 29. 9 31 . 7 5.9 4 . 3% O T C NO TS X TS X AM E X A ME X OTCB B HLS E 1 A ME X 66 . 8 Na s da qG M 28. 6 TSX 24 . 3 ASX 2.3 Na sda qG S 1 . 9% 1 57 . 4 20. 6 22 . 4 -1.0 -5 . 3% OSE T S XV K LS E XT R A O T C NO BSE 1 34 . 7 20. 6 21 . 0 -1.6 -6 . 9% CM RTS BSE OT C PK A IM TS X 1 31 . 5 18. 3 9 .1 -6.0 -9 . 1% B SE HL S E OTCP K TSXV TSX K OSE 1 20 . 6 12. 6 6 .3 -1 0.0 -16 . 5% Nas da qC M K LS E OTCB B AS X TSXV S E HK 1 20 . 6 11. 5 5 .2 -1 1.8 -42 . 5% NY S E BS E T S XV HLS E Na s da qC M AS X 1 17 . 2 11. 4 1 .9 -1 2.0 -91 . 6% A IM AS X Na s da qC M O T C NO HL S E O T C NO 1 11 . 4 8. 6 1 .6 -1 4.5 NM OM Na sdaqC M ASX OT C BB Na s da qG M CM 1 2.9 2. 9 0 .2 -2 7.2 NM R TS A IM A IM AI M OTCPK OS E K LS E 1 O T C NO 0.2 O T C NO 0. 2 Nas da qC M 0 .1 OTCBB -5 1.5 K LS E NM G rand Total 89 G rand T ota l 27 ,809.9 G ra nd Total 312. 5 G rand Total 130 .4 G rand T otal 2,31 5.8 G ra nd Tota l 7 .3% Figure 28. Comparison by Exchange Source. Capital IQ
    • Page 21 Financing - Last Three Months (US$ m) Month Company Name Country Angel/Seed Debt financing Series A Series B Series C Series D Series E Grand Total Jan-09 Aster Data Systems USA 17.0 17.0 USA 13.0 13.0 Yodle AdMob USA 12.5 12.5 France 11.4 11.4 VirtuOz USA 10.0 10.0 IMVU NewsGator USA 10.0 10.0 USA 10.0 10.0 Go Internet Media DECA USA 10.0 10.0 Korea 10.0 10.0 Nurien USA 10.0 10.0 RatePoint One True Media USA 9.0 9.0 Israel 8.0 8.0 SundaySky Play Hard Sports USA 8.0 8.0 USA 7.5 7.5 JibJab USA 7.0 7.0 Xobni USA 6.5 6.5 InsideView France 6.2 6.2 Kewego Fliqz USA 6.0 6.0 USA 6.0 6.0 Motionbox USA 6.0 6.0 SocialMedia USA 5.0 5.0 Sportsblogs USA 5.0 5.0 AboutUs Geni USA 5.0 5.0 USA 5.0 5.0 Gbox USA 3.5 3.5 E-Global Sports Network USA 2.5 2.5 mEgo Austria 2.5 2.5 Tripwolf Hubdub UK 1.2 1.2 USA 1.0 1.0 Snooth CoveritLive Canada 1.0 1.0 USA 0.3 0.3 BackType Canada 0.2 0.2 Identi.ca USA Meez Jan-09 Total 5.0 45.2 73.9 82.2 10.0 216.3 USA 35.0 35.0 Feb-09 Twitter South Africa 20.0 20.0 Synthasite Trem or Media USA 18.0 18.0 USA 15.0 15.0 Offerpal Media Imagini UK 13.5 13.5 USA 12.5 12.5 Emergent Game Technologies Israel 12.0 12.0 Outbrain Tvtrip France 9.0 9.0 China 6.0 6.0 Tongxue Oodle USA 5.6 5.6 USA 4.3 4.3 TextDigger USA 4.2 4.2 OneSpot Mixpo Canada 4.0 4.0 USA 4.0 4.0 FetchDog Virtual Fairground Netherlands 4.0 4.0 USA 3.0 3.0 7 Billion People USA 2.9 2.9 FamilyLink.com USA 2.3 2.3 WhistleBox UK 2.0 2.0 Mendeley Outright USA 2.0 2.0 Israel 1.6 1.6 Tvinci USA 1.4 1.4 Filtrbox Netherlands 1.3 1.3 MMO Life USA 1.3 1.3 Cake Financial UK 0.7 0.7 fav.or.it Feb-09 Total 13.3 24.8 76.4 58.6 12.5 185.5 USA 15.0 15.0 Mar-09 Vidyo USA 12.0 12.0 SendMe Inc. Simulmedia USA 4.0 4.0 Canada 3.9 3.9 Tynt Netherlands 1.3 1.3 Myngle Mar-09 Total 1.3 7.9 15.0 12.0 36.2 Grand Total 18.3 1.3 77.9 150.2 155.8 12.0 22.5 438.0 Figure 29. Financing, Last Three Months Source. Company reports
    • Page 22 RELEVANT DISCLOSURES APPLICABLE TO: NONE LIST OF DISCLOSURE TERMS: None applicable. 1. ANALYST CERTIFICATION Each analyst of Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report. I n f o r ma t i o n a b o u t Re s e a r ch C a p i t a l C o r p o r a t i o n ’ s Ra t i n g S y s t e m, t h e d i s t r i b u t i o n o f o u r r e s e a r ch t o cl i e n t s a n d t h e p e r ce n t a g e o f r e c o m me n d a t i o n s wh i c h a r e i n e a c h o f o u r r a t i n g c a t e g o r i e s i s a v a i l a b l e o n o u r we b si t e a t ww w. r e s e a r ch c a p i t a l . c o m. T h e i n f o r ma t i o n c o n t a i n e d i n t h i s r e p o r t h a s b e e n d r a wn f r o m s o u r c e s b e l i e ve d t o b e r e l i a b l e b u t i t s a c cu r a c y o r co mp l e t e n e ss i s n o t g u a r a n t e e d , n o r i n p r o vi d i n g i t d o e s R e s e a r c h Ca p i t a l C o r p o r a t i o n a s s u me a n y r e sp o n si b i l i t y o r l i a b i l i t y . R e s e a r ch C a p i t a l C o r p o r a t i o n , i t s d i r e ct o r s , o f f i c e r s a n d o t h e r e mp l o y e e s ma y , f r o m t i me t o t i me , h a v e p o si t i o n s i n t h e s e cu r i t i e s me n t i o n e d h e r e i n . Co n t e n t s o f t h i s r e p o r t c a n n o t b e r e p r o d u c e d i n wh o l e o r i n p a r t wi t h o u t t h e e xp r e ss e d p e r mi s si o n o f R e se a r ch C a p i t a l C o r p o r a t i o n . ( U . S . I n s t i t u t i o n a l Cl i e n t s — Re s e a r ch C a p i t a l U . S. A . I n c. ( a wh o l l y o wn e d s u b si d i a r y o f R e s e a r c h C a p i t a l Co r p o r a t i o n ) a cc e p t s r e s p o n si b i l i t y f o r t h e c o n t e n t s o f t h i s r e p o r t s u b je c t t o t h e t e r ms & l i mi t a t i o n s s e t o u t a b o v e . F i r ms o r i n s t i t u t i o n s r e ce i vi n g t h i s r e p o r t s h o u l d e f f e ct t r a n s a ct i o n s i n s e c u r i t i e s d i sc u s se d i n t h e r e p o r t t h r o u g h R e s e a r ch C a p i t a l U . S . A . I n c. , a B r o k e r - D e a l e r R e g i s t e r e d wi t h t h e U n i t e d S t a t e s S e cu r i t i e s a n d E xc h a n g e C o m mi s si o n ) . Tor on to 4 16. 8 60. 76 00 M ontr eal 51 4. 39 9. 150 0 V anco u ver 60 4. 66 2. 180 0 C al gar y 40 3. 26 5. 740 0 R egi na 306. 566. 7550 www.researchcapital.com