09-04-07 Web 2.0 Weekly
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09-04-07 Web 2.0 Weekly

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Q2 financing starts slowly with only 2 transactions but corporate activity heats up.

Q2 financing starts slowly with only 2 transactions but corporate activity heats up.

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    09-04-07 Web 2.0 Weekly 09-04-07 Web 2.0 Weekly Document Transcript

    • SOFTWARE & SERVICES 07 APRIL 2009 DAVID SHORE, CFA, MBA 416.860.6784 WEB 2.O WEEKLY david.shore@researchcapital.com Arun Thomas (Associate) 416.860.7666 A QUIET WEEK FOR FINANCING BUT CORPORATE ACTIVITY HEATS UP SECON D Q UA RT ER FINAN CING BEG IN S SLOWLY The first week of the second quarter was relatively quiet with only two companies raising a total of $7.5 million. Socialtext and TubeMogul raised $4.5 million and $3 million, respectively. Socialtext – a social networking and collaboration company has raised a total of $18 million since April 2003; while TubeMogul (from the analytics sector) to date has raised $4.5 million. On the other hand, there were several significant corporate developments announced in the last week. Changyou.com completed its IPO, raising $120 million. This was the first Chinese IPO completed in quite a few months. Additionally, Kaboose announced that it would be selling its US assets to Disney and its UK assets to Barclays Private Equity. C ompany Headline B a rc lays P rivate E quity L td. agreed to ac quire the UK operation s of B arcla ys Priva te E quity L td.; K aboos e Inc. (T S X: K AB ); K a boos e Inc . (T S X: K AB ) for £ 54 million. K aboos e Inc. , UK O perations Dis ne y O nline a greed to ac qu ire the I nterne t as s ets from K aboos e In c. Dis ney O nline; K a boos e Inc . (T S X : K AB ); K a boos e Inc ., (T S X: K A B ) f or $18 .4 million. Internet As s ets C han gyou. c om Limite d has c omplete d an IP O in the amount of $ 120. 00 C hangyou.com L imited (Nas daqG S : C Y OU ) million. This report has been created by Anal ysts that are employed by Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report. www.researchcapital.com Toronto 416.860.7600 Montreal 514.399.1500 Vancouver 604.662.1800 Calgary 403.265.7400 Regina 306.566.7550
    • Page 2 THE WEB 2.0 UNIVERSE Ninety-two public Web 2.0 companies identified: Our Web 2.0 universe contains 92 companies, with a combined market cap of $38 billion (Figure 1). The average market cap for the group is ~$415 million (but a median of only $42 million), with average trailing revenue of $145 million (median $53 million). The companies are also generally profitable, with a median EBITDA margin of 16.8%. On a valuation basis, the overall average is 3.6x trailing revenue (median 1.2x) and 9.1x trailing EBITDA (median 8.0x). Twelve of the companies have more than 500 employees. C omparable C ompany Analys is > Web 2.0 Trading C urrent US D Market US D L TM Total US D L TM Total E B ITDA TE V/L TM TE V/L TM L TM as of Tic ker E xc hange C urrency HQ P rice C ap ($m) R ev ($m) E B ITDA ($m) % R evenue E B ITDA E mployees C ompany Name Accelerize New Media, Inc. 9/30/2008 AC L Z OT C B B US D United S ta tes 0.32 8. 6 3.2 (4.7) NM 4.0x - 20 Actoz S oft C o., Ltd. 9/30/2008 A052790 K OS E KRW S outh K orea 12, 500 84.5 56. 1 10.2 18.3% 1.0x 5. 6x NA AQ Intera ctive, Inc. 12/31/2008 3838 TS E JPY J a pa n 45,900.00 24.8 59. 9 4.8 8.0% - - NA As s ociated Media Holdings Inc. 6/30/2007 AS MH OT C P K US D United S ta tes 0 0. 1 0.1 (2.3) NM 8.0x - 3 B igs tring C orp. 9/30/2008 BS GC OT C B B US D United S ta tes 0.02 0. 8 0.1 (2.1) NM 29.8x - 8 B eta wa ve C orpora tion 12/31/2008 B W AV OT C B B US D United S ta tes 0 3. 8 7.7 (11.8) NM - - NA B eyond C ommerce, Inc. 9/30/2008 B Y OC OT C B B US D United S ta tes 1.29 53.3 1.1 (7.7) NM - - 25 B right T hings plc 9/30/2008 AIM:B G T AIM GBP United K ingdom 0 3. 0 0.2 (1.7) NM 12.0x - 9 B roa dW ebAs ia Inc. 9/30/2008 BWBA OT C P K US D United S ta tes 0.45 38.2 0.0 (4.6) NM - - 46 C DC C orp. 9/30/2008 C HIN.A Na s da qG S US D Hong K ong 1 123.0 428.1 18.8 4.4% 0.4x 9. 6x 3,125 C hina G a tewa y C orpora tion 9/30/2008 CGWY OT C B B US D United S ta tes 0.00 0. 0 6.7 (6.6) -98.9% 0.0x - 37 C hines e G amer Internationa l 9/30/2008 G T S M: 3083 GTS M TWD T aiwan 173 442.7 38. 7 18.3 47.1% 9.9x 21.1x NA C ornerW orld C orporation 1/31/2009 CWR L OT C B B US D United S ta tes 0.14 6. 6 1.3 NM NM 6.1x - NA C yberplex Inc. 12/31/2008 T S X: C X TS X C AD C anada 1 38.9 46. 1 3.9 8.4% 0.8x 9. 6x NA DADA S pA 9/30/2008 C M:DA CM E UR Italy 4.50 97.6 226.8 36.2 16.0% 0.6x 3. 9x 574 DXN Holdings B hd 11/30/2008 DXN K LS E MY R Ma la ys ia 0 20.9 78. 1 10.4 13.3% 0.5x 4. 0x NA Dibz Internationa l, 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. 9/30/2008 DG L P OT C B B US D United S ta tes 0 1. 5 0.4 (3.3) NM 6.0x - 11 DigitalT own, Inc. 11/30/2008 DG T W OT C B B US D United S ta tes 2.50 67.9 NM (2.5) NM - - 3 Dolphin Digital Media, Inc. NA DP DM OT C B B US D United S ta tes 1 32.6 NA NM NM - - 6 E olith C o. Ltd. 12/31/2007 A041060 K OS E KRW S outh K orea 535.00 19.1 19. 1 (0.1) -0.3% 1.0x - NA E xtens ions , Inc. 9/30/2008 E XT I OT C P K US D United S ta tes 0 14.2 NM NM NM - - 2 F inancial Media G roup, Inc. 11/30/2008 F NG P OT C B B US D United S ta tes 0.01 0. 6 6.8 1.2 18.3% - - 22 F luid Mus ic C anada , Inc. 9/30/2008 T S X: F MN TS X C AD United S tates 1 21.2 4.2 (8.6) NM 1.9x - 29 F rogs ter Intera ctive P ictures AG 6/30/2008 FR G XT R A E UR G ermany 7.01 22.0 5.4 (3.3) -60.6% 4.0x - NA G a ma nia Digital E ntertainment C o., L td. 12/31/2008 6180 GTS M TWD T aiwa n 33 150.9 113.4 16.4 14.5% 1.2x 8. 0x NA G a meOn C o L td. 12/31/2008 3812 TS E JPY J a pa n 90,500.00 86.9 74. 1 19.2 25.9% 0.4x 1. 7x NA G eoS entric O yj 9/30/2008 G E O 1V HL S E E UR F inla nd 0 25.0 5.5 (12.7) NM 3.6x - 92 G iant Interactive G roup, Inc. 12/31/2008 GA NY S E US D C hina 7.26 1,640.8 233.2 144. 4 61.9% - - NA G iga Media Ltd. 12/31/2008 G IG M Na s da qG S US D T aiwa n 6 302.0 190.4 46.0 24.2% 1.2x 4. 9x NA G ra vity C o., Ltd 9/30/2008 GR VY Na s da qG M US D S outh K orea 0.85 23.6 37. 5 7.2 19.2% - - 636 G ree, Inc. 6/30/2008 T S E :3632 TS E JPY J a pa n 5, 760 1,275.9 29. 2 10.5 36.0% 41.6x - NA G ungHo O nline E nterta inment, Inc. 12/31/2008 3765 OS E JPY J a pa n 126,900.00 144.3 111.6 19.9 17.8% 1.1x 6. 2x NA Ha nbitS oft, Inc. 12/31/2008 A047080 K OS E KRW S outh K orea 3, 265 54.9 53. 3 (15.0) -28.2% 0.7x - NA IAC /InterActiveC orp. 12/31/2008 IAC I Na s da qG S US D United S ta tes 16.14 2,274.9 1,445.1 64.6 4.5% 0.4x 8. 1x 3,200 IAS E nergy, Inc. 1/31/2009 IAS C .A OT C B B US D C anada 0 4. 9 0.0 (0.8) NM - - NA Idea E dge, Inc. 12/31/2008 O T C B B :IDAE OT C B B US D United S ta tes 0.34 14.4 0.0 (4.6) NM - - NA is eemedia Inc. 12/31/2008 IE E T S XV C AD C anada 0 4. 1 1.2 (4.8) NM 2.1x - NA J umbuck E ntertainment P ty L td. 12/31/2008 AS X: J MB AS X AUD Aus tra lia 0.46 16.2 12. 7 4.7 37.2% 0.9x 2. 5x 72 J umpT V Inc. 6/30/2008 T S X: J T V TS X C AD C anada 1 50.4 11. 5 (1.8) -15.3% 5.4x - NA K a boos e Inc. 12/31/2008 T S X: K AB TS X C AD C anada 0.58 65.4 66. 0 6.6 9.9% 1.1x 11.1x NA K ings oft C o. Ltd. 12/31/2008 3888 S E HK HK D C hina 3 455.8 120.0 46.2 38.5% 3.1x 8. 0x NA L ingo Media C orporation 9/30/2008 T S XV :L M T S XV C AD C anada 0.83 8. 6 3.3 (1.4) -42.5% 2.8x - NA L iveW orld Inc. 12/31/2008 LV W D OT C P K US D United S ta tes 0 4. 0 11. 8 (0.5) -4.3% 0.3x - NA L ookS ma rt, Ltd. 12/31/2008 LOOK Na s da qG M US D United S ta tes 1.20 20.5 65. 0 (2.0) -3.1% - - 90 Magnitude Informa tion S ys tems Inc. 9/30/2008 MAG Y OT C B B US D United S ta tes 0 6. 5 0.1 (3.2) NM - - 13 Mixi, Inc. 12/31/2008 2121 TS E JPY J a pa n 389,000.00 592.9 116.5 44.3 38.0% 4.2x 11.1x NA Modern T imes G roup Mtg AB 12/31/2008 MT G B OM SEK S weden 151 1,236.3 1,636.0 261. 6 16.0% 1.1x 6. 6x NA Moggle, Inc 12/31/2008 MMO G OT C B B US D United S ta tes 2.30 83.5 NM (1.1) NM - - 3 MO K O .mobi Limited 12/31/2008 MK B AS X AUD Aus tra lia 0 5. 9 1.0 (2.1) NM 4.7x - NA NE O W IZ G ames C orpora tion 12/31/2007 A095660 K OS E KRW S outh K orea 50,000.00 368.7 138.2 37.1 26.9% 2.6x 9. 7x NA NetDra gon W ebS oft, Inc. 12/31/2008 777 S E HK HK D C hina 4 293.3 87. 1 39.9 45.7% 1.7x 3. 7x NA Neteas e. com Inc. 12/31/2008 NT E S Na s da qG S US D C hina 28.60 3,519.3 451.0 293. 2 65.0% - - NA NeXplore C orporation 9/30/2007 NXP C OT C P K US D United S ta tes 1 41.8 NM (4.9) NM - - 19 Ngi G roup Inc. 12/31/2008 2497 TS E JPY J a pa n 23,200.00 28.5 97. 6 30.1 30.8% - - NA Northgate T echnologies L imited 12/31/2008 590057 BS E INR India 41 28.6 134.6 23.7 17.6% 0.2x 1. 2x 286 O pen T ext C orp. 12/31/2008 OT E X Na s da qG S US D C anada 33.64 1,745.9 769.3 195. 0 25.3% 2.4x 9. 6x 3,400 O penwa ve S ys tems Inc. 12/31/2008 OP W V Na s da qG S US D United S ta tes 1 103.3 199.6 (10.2) -5.1% 0.1x - 627 P erfect W orld C o., Ltd. 12/31/2008 PWRD Na s da qG S US D C hina 16.15 852.0 210.1 113. 7 54.1% - - NA P hotoC hannel Networks Inc. 12/31/2008 T S XV :P N T S XV C AD C anada 2 43.2 16. 1 (0.8) -4.9% 2.6x - NA Q uepa s a C orp. 12/31/2008 QP S A Na s da qC M US D United S ta tes 0.99 12.6 0.1 (11.4) NM - - NA O AO R B C Informa tion S ys tems 12/31/2007 R BCI R TS US D R us s ia 0 55.5 142.0 18.6 13.1% 0.0x 0. 1x NA S handa Intera ctive E nterta inment Ltd. 12/31/2008 S NDA Na s da qG S US D C hina 42.71 2,963.3 521.9 239. 8 46.0% 0.0x 0. 1x NA S hutterfly, Inc. 12/31/2008 S F LY Na s da qG S US D United S ta tes 10 245.2 213.5 28.4 13.3% 0.7x 5. 5x 514 S K C ommunica tions C o., Ltd. 12/31/2007 A066270 K OS E KRW S outh K orea 8,400.00 264.8 159.0 15.0 9.4% 1.7x 17.7x NA S NAP Interactive, Inc. 9/30/2008 S TVI OT C B B US D United S ta tes 1 8. 1 2.3 0.2 10.1% 3.1x 30.2x 5 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 enures , Inc. 12/31/2008 S MV I OT C P K US D United S ta tes 1 0. 0 0.1 (0.1) -60.5% 0.0x - NA S ohu.com Inc. 12/31/2008 S O HU Na s da qG S US D C hina 46.23 1,762.1 429.1 180. 5 42.1% 3.4x 8. 0x 3,197 S ites earch C orpora tion 1/31/2009 S TPC OT C B B US D United S ta tes 3 28.2 NM (1.1) NM - - 15 S park Networks , Inc. 12/31/2008 LOV AME X US D United S tates 2.25 46.2 57. 3 12.3 21.5% 0.8x 3. 8x 183 S pectrumDNA, Inc. 9/30/2008 S P XA OT C B B US D United S ta tes 0 7. 3 0.1 (2.7) NM - - 7 T encent Holdings L td. 12/31/2008 700 S E HK HK D C hina 60.30 13,995.5 1,046.1 517. 4 49.5% 14.5x 29.2x 6,194 T he P arent C ompa ny 8/2/2008 K IDS .Q OT C P K US D United S ta tes 0 0. 5 112.0 (13.5) -12.0% 0.2x - 347 T he9 L imited 12/31/2008 NC T Y Na s da qG S US D C hina 14.15 379.5 249.8 84.1 33.7% - - NA T heS treet. com, Inc. 12/31/2008 TS CM Na s da qG M US D United S ta tes 2 60.7 71. 9 7.0 9.7% - - 310 T ota l S port O nline AS 3/31/2006 T OS O OT C NO NO K Norwa y 0.04 0. 2 2.0 (1.0) -50.6% 4.6x - 16 T ree.C om, Inc. 12/31/2008 TR E E Na s da qG M US D United S ta tes 5 51.1 228.6 (23.9) -10.4% 0.2x - 700 Unis erve C ommunications C orp. 11/30/2008 T S XV :US S T S XV C AD C anada 0.04 0. 8 24. 1 0.1 0.4% 0.1x 29.5x NA United O nline Inc. 12/31/2008 UNT D Na s da qG S US D United S ta tes 5 416.5 669.4 153. 9 23.0% 1.1x 4. 7x 1,469 UO MO Media, Inc 1/31/2009 UO MO OT C B B US D C anada 0.08 6. 9 0.6 (0.5) -78.2% 11.3x - NA V a lueC lick Inc. 12/31/2008 V C LK Na s da qG S US D United S ta tes 9 798.1 625.8 113. 6 18.2% 1.1x 5. 9x 1,189 V O IS , Inc. 12/31/2008 V O IS OT C B B US D United S ta tes 0.23 1. 9 0.0 (1.3) NM - - 4 W ebzen Inc. 9/30/2008 W ZE N Na s da qG M US D S outh K orea 2 26.7 21. 6 (6.4) -29.5% - - 330 W izza rd S oftware C orporation 9/30/2008 W ZE AME X US D United S ta tes 0.46 21.7 6.2 (6.5) NM 3.5x - 110 W oozyF ly, Inc. 9/30/2008 W ZY F OT C B B US D United S ta tes 0 2. 6 0.0 NM NM - - 14 W orlds .com Inc. 9/30/2008 W DDD OT C B B US D United S ta tes 0.17 8. 9 0.1 NM NM - - 1 W ynds torm C orpora tion NA W Y ND OT C B B US D United S ta tes 0 3. 1 NA NM NM - - NA X ING AG 12/31/2008 O 1B C XT R A E UR G ermany 29.29 200.7 46. 7 15.0 32.0% 3.1x 9. 6x NA Y eda ngO nline C orp. 12/31/2007 A052770 K OS E KRW S outh K orea 8, 670 104.0 52. 6 11.8 22.4% 2.0x 8. 8x NA Y nk K orea Inc. 12/31/2007 A023770 K OS E KRW S outh K orea 4,385.00 8. 2 14. 9 (1.1) -7.6% 0.6x - NA ZipLocal Inc. 12/31/2008 T S XV :ZIP T S XV C AD C anada 0 1. 0 2.6 (2.8) NM 0.8x - NA High 13,995.5 1,636.0 517.4 65.0% 41.6x 30.2x 6, 194 L ow 0. 0 0. 0 -23.9 -98.9% 0.0x 0. 1x 1 Average 415.0 144.5 32.1 8.9% 3.6x 9.1x 600 Media n 41.8 52.9 1. 2 16.8% 1.2x 8. 0x 92 Figure 1. Web 2.0 Universe Summary Source. Capital IQ
    • Page 3 CAPITAL MARKETS ACTIVITY (M&A AND FINANCING) April starts a tad slow : The first week of April saw only 2 financings totalling $7.5 million ($4.5 million raise by Socialtext and $3 million by TubeMogul). For the month of March, 22 financings were announced (total $130.7 million, average $5.9 million) compared to 25 financings announced in February, totalling $185.5 million, or $7.4 million on average (Figure 2). The average value for February was above the $6.8 million average for January, with four financings over $15 million in February (Twitter, Synthasite, Tremor Media, and Offerpal Media) vs. no deals over $15 million in January. Financing Activity Last Three Months 200.0 8.0 180.0 7.0 160.0 6.0 140.0 5.0 120.0 (US$m) (US$m) 100.0 4.0 80.0 3.0 60.0 2.0 40.0 1.0 20.0 0.0 0.0 Feb-09 Mar-09 Apr-09 Total Average Figure 2. Financings, Last Three Months Source. Company reports Socialtext largest deal in April: The first week of April saw two only deals and the greater of the two was the $4.5 million Series D round for SocialText (Figure 3), with TubeMogul closely behind with a $3 million Series A. For additional details, see Figures 24 and 25 (at end of note).
    • Page 4 Financing Summary - Last Three Months 40.0 35.0 30.0 25.0 Apr-09 (US$m) 20.0 Mar-09 Feb-09 15.0 10.0 5.0 0.0 Pixazza Mixpo Miva Tongxue AnySource Media MMO Life Myngle OMGPOP FamilyLink.com Synthasite Vidyo Offerpal Media Tvtrip Greystripe Mendeley Filtrbox TextDigger Tremor Media LendingClub Outbrain Auditude Glam Media Oodle Apture FetchDog Hunch AdultSpace Visible Measures 7 Billion People Bit.ly Three Melons Twitter Buzznet Socialtext Sports 33Across Emergent Game Simulmedia WhistleBox SendMe Inc. Tynt fav.or.it TubeMogul Tvinci SuperSecret GoViral OneSpot Virtual Outright Cake Financial Wamba Imagini Figure 3. Capital Market Activity, 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 8 companies raising over $63.4 million (Figure 4). Social networking companies have the next highest totals, with 10 companies raising $53 million. Capital Market Activity by Sector - Last Three Months 70.0 60.0 50.0 40.0 (US$m) 63.4 30.0 53.0 20.0 37.0 31.4 25.6 22.5 10.0 20.0 16.0 15.0 12.0 12.0 9.0 5.5 4.3 4.1 4.0 3.9 3.1 2.0 2.0 1.4 1.3 0.8 0.0 Comment/Reputation Gaming Visual Commerce Microblog Media Mobile Online Learning Publishing Wiki Travel Financial Services Lending Mobile Ad Search Infrastructure Social Networks Virtual Goods Video Aggregation Virtual World Crowdsourced Analytics Ad Network Content # companies 8 10 2 6 3 4 1 3 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Figure 4. Capital Market Activity, by Sector, Last Three Months Source. Company reports
    • Page 5 CAPITAL MARKETS ACTIVITY (PRICE PERFORMANCE) Price Performance: Our Web 2.0 index (market-cap weighted) underperformed the NASDAQ composite index from mid 2008 until recently when it has moved higher than the NASDAQ index (Figure 11). Web 2.0 Index Price Performance 140 120 100 80 60 40 20 0 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 3/23/2009 4/6/2009 ^COMP - Share Pricing Index: Web 2.0 X (Market Cap) Figure 5. Web 2.0 Price Performance Source. Capital IQ A positive week: Most of the companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with 22 companies showing positive returns on the week. Beyond Commerce Inc. (BYOC-OTCBB) led the group with a 152.9% return over the past week. GigaMedia (GIGM-NasdaqGS) had the worst return, dropping 5.4% in the week.
    • Page 6 1 Week P rice P erformance B ey ond Commerce, Inc . 152.9% Openw ave S y s tems Inc . 37.8% Webz en Inc. 28.6% Perfect World Co., Ltd. 18.9% LookS mart, Ltd. 18.8% V alueClick Inc. 17.2% United Online Inc . 16.6% S handa Interactive Entertainment Ltd. 16.0% S ohu.com Inc. 15.3% A Q Interactive, Inc . 14.8% Tree.Com, Inc. 14.5% The9 Limited 14.4% Neteas e.com Inc . 13.1% Modern Times Group Mtg A B 11.6% Frogs ter Interactiv e Pictures A G 6.4% Giant Interactive G roup, Inc. 6.3% IA C/InterA ctiv eCorp. 5.9% CDC Corp. 5.6% S hutterfly , Inc. 4.4% Mix i, Inc . 2.9% G ree, Inc. 2.9% XING A G 1.7% TheS treet.com, Inc . 0.0% PhotoChannel Netw orks Inc. 0.0% Open Tex t Corp. -1.4% S park Netw orks , Inc . -2.2% G ameOn Co Ltd. -3.3% Ngi G roup Inc. -4.5% DA DA S pA -5.2% GigaMedia Ltd. -5.4% -20.0% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 140.0% 160.0% 180.0% Figure 6. 1-Week Price Performance Source. Capital IQ
    • Page 7 INDUSTRY NEWS (PARTNERSHIPS, FINANCIAL RESULTS, NEW PRODUCTS) K ey Developments C ompany Headline Notes B arc lays P rivate E quity Ltd. ; K aboos e B a rcl a ys P riva te E quity L td. a greed to a c quire the U K B a rcla y s P riv a te E quity L td. agreed to a cqu ire the U K opera tions of K a boos e Inc . (TS X: K AB ) for £ 54 million on M a rch 31, 2009. opera tions of K a boose I nc. (T S X : K AB ) for £54 million. Inc . (TS X:K AB); K abo os e Inc . , UK Operations B etawave Co rporation (OT CB B: B WA V) B eta wa ve C orporation R eports C ons olida ted E a rnings B eta wa ve Corpora tion reported c ons olida ted ea rnings res ults for the full yea r ended Dec embe r 31, 2008. F or the period, R ev enues were R es ults for the F ull Y ea r E nded D ec ember 31, 2008 $7,701, 599 a ga ins t $2, 081,182 a yea r a go. Net los s wa s $16,969, 985 or $0. 66 per ba sic and diluted s ha re a gainst net loss of $16,377, 858 or 0. 68 per ba s ic a nd diluted sha re, a yea r a go. N et ca s h us ed in opera ting a c tivities wa s $7,077, 358 a ga ins t $13, 550,034 a y ea r a go. B eyond Commerce, Inc . a nnounc ed dela y ed a nnua l 10-K O n 03/31/2009, B eyond Commerce, I nc . a nnounced tha t they will be una ble to file thei r next 10-K by the dea dlin e required by the S E C . B eyond Co mmerc e, Inc . filing (OT CB B: B YOC) B roa dW ebAs ia I nc. a nnoun ced dela yed a nnua l 10-K filing O n 04/01/2009, B roa dW ebAsia Inc . a nnounc ed that they will be una ble to file their next 10-K by the dea dline required by the S E C . B roadWebAs ia Inc . (OT CP K : B WB A) Cha ngy ou.c om L imited ha s c ompleted a n IP O in the Cha ngy ou.c om L imited ha s c ompleted a n I P O in the a mount of $120. 00 million. C hang yo u. c om L imited a mount of $120.00 million. (N as daqG S : C YOU) O ffer D eta ils : S ecurity Ty pe: C ommon S toc k (D eposita ry R ec eipts ) O ffered: 7500000 P rice/R a nge: 16.00 China G a tewa y Corpora tion will Cha nge its Tic ker to E ffectiv e April 06, 2009, C hina G a tewa y C orpora tion will c ha nge its O T CB B stoc k tic k er s ymbol to C G W Y E from CG W Y . C hina G ateway Corporatio n CG W Y E from C G W Y (OT CB B: C G W Y) Digita lF X Internationa l I nc. L a unches F 5 Ca mpa ign M a il Digita lFX Interna tiona l I nc. a nnounc ed tha t it ha s begun s hipping its C ommF 5 S uite product li ne to its independent dis trib utor network. T he DigitalF X International, Inc . P roduct F5 e-ma rk eting tool will ena ble s ma ll bus iness es to ea s ily c re a te a nd dis tribute ema il marketing c a mpa igns a t a n a fforda ble price. W ith the (OT CB B: DG F X) declining us a ge of tra ditiona l a dvertis ing c ha nnels s uch a s Y ellow P a ges or news pa pers , busines s es a re c ons ta ntly sea rc hing for solutions whic h c a n meet the c ha llenges of the internet a ge. F 5 is suc h an a pplic a tion . B usines s es, internet ma rketers , non-profit organiz a tions a nd a ss ocia tions of a ll k inds would ha ve to us e a va riety of s ervic es and a pplica tions to a c complis h wha t F5 provides in one singl e s olution. A pa rtial list of F5 func tiona lity inc ludes : Integra ted v ideo a nd a udio c reation, pla ylis ts, pic ture ga lleries , media s tora ge a nd media publis hing; Full ema il c lient with video, a udio, a nd templa te integra tion for indiv idua l follow up; C ontac t lis t ma nager; L ea d c a pture; Auto-res ponder; Cus tomize d templa te crea tion; a nd E ma il delive ry re porting a nd a na ly tic s . Digita lP os t Intera c tiv e I nc. R eports E a rnings R esults for Digita lP ost Intera ctive I nc. reported ea rning s results for the fourth qua rter a nd full year ended Dec ember 31, 2008. F or the qua rter, the DigitalP os t Interac tive, In c . the F ourth Q ua rter a nd F ull Y ear E nded Dec ember 31, compa ny reported net los s wa s $678,600 a dec rea s e of $205, 200 or 23% a s c ompa red to a net loss of $883,800 for the third qua rter of (OT CB B: DG L P ) 2008 2008. This wa s a c hieved by reducing opera tiona l ex penses by $323, 900 or 40% from the thi rd qua rter of 2008. For the full y ea r, the compa ny reported growth in rev enue of $488,900 a 314% inc rease from $118,100 for the s a me period la st yea r. T he growth is la rgely due to the c ompa ny's s tra tegic ma rketing pa rtners hip with K iddie K andids, which la unc hed in the fourth quarter of 2008. Ca s h us ed by opera ting a ctivities improved by 12% to $1,515 ,700 for the year ended Dec ember 31, 2008, a s c ompa red to $1,724, 700 c a s h used during the sa me period la s t yea r. N et los s inc rea sed to $4,017, 200 from a net los s of $2, 544,500 for the s a me period la st yea r. Dis ney O nline a greed to a c quire the Internet a s sets from Dis ney O nline a greed to ac quire the Internet a ss ets from K a boose I nc. (T S X : K AB ) for $18.4 million on April 1, 2009. T he a s sets wi ll be Dis ney Online; K aboos e Inc . K a boos e I nc. (T S X : K AB ) for $18. 4 million. integra ted into Dis ney O nline’s extens ive line-up of web s ites. (T S X: K AB); Kaboos e Inc ., Intern et A s s ets G iga Media a nd E A M ythic to L a unc h T a iwa n Clos ed B eta G iga Media L td. a nd E A My thic a nnounced tha t the clos ed beta for the highly a c cla imed MMO R P G will begin on April 15th, 2009. As pa rt of E A Myth ic; G igaMedia Ltd. for W arha mmer O nline: Age of R ec k oning the clos ed beta la unch, clos ed beta pa ck s will be a va ila ble a t ma jor reta ilers. The L imited E dition c losed beta ga me pa c ks , av a ila ble a t (N as daqG S : G IG M) pa rtic ipa ting 7-E lev en(R ) reta ilers in T a iwa n, ha v e been sold out. Fea turing i nnova tive R v R game pla y a nd P ublic Q ues ts (TM ), pla yers are immers ed in a world of perpetua l conflic t between the a rmies of O rder and Des truc tio n. Nov ice MM O pla y ers a nd vetera ns a like will a pprecia te the incredible depth a nd va riety a va ila ble in W AR . E xtensions , I nc. a nnounced dela yed a nnua l 10 -K filing O n 03/31/2009, E xtensions , I nc. a nnounc ed tha t they will be una b le to file their next 10-K by the dea dline required by the S E C . E xtens ions , In c . (OT CP K :E XTI) G iga Media L td. R eports Una udited C ons olida ted G iga Media L td. reported una udited cons olida ted earnings res ults for the fourth qua rter a nd full yea r ended D ec ember 31, 2008. F or the G igaMedia L td. (N as daqG S : G IG M) E a rnings R esults for the F ourth Q ua rter a nd Full Y ea r quarter, the c ompany's rev enues increas ed 1% to $44.6 milli on from $44. 2 million in the s a me period of 2007. Y ear-ov er-yea r results E nded D ec ember 31, 2008; Announc es I mpa irment reflec ted c ontinued organic growth i n the c ompany's ga ming s oftwa re bus iness , whic h offset d ecrea s ed fourth-qua rter contributions from the Cha rges Asia n online ga mes bus ines s. I nc ome from opera tions decrea s ed 16% y ear-over-year to $7. 9 million from $9.4 mil lion in the fo urth qua rter of 2007. The year-ov er-yea r decrea s e in inc ome from opera tions wa s la rgely due to a decline in the compa ny 's cons olida ted operating ma rgin to 17.7% in the fourth quarter from 21. 3% a y ea r a go. Non-G AAP inc ome from opera tions wa s $8. 0 million, down 21% yea r-ov er-year. T he compa ny reported inc ome from co ntinuing opera tions before income ta x es a nd minority interes t of $8. 58 million compa red to $9.72 million reported a y ea r a go. Inc ome from continuing opera tions wa s $8. 08 million or $0. 13 per diluted s ha re c ompa red to $10. 63 million or $0.18 per diluted share reported a yea r a go. Net income d ecrea s ed 15% to $9. 1 million or $0. 15 per diluted s ha re from $10. 7 million or $0. 18 per diluted G iga Media L td., Q 4 2008 E a rnings C a lls , M a r-31-2009 G iga Media L td. , Q 4 2008 E a rnings C a lls , Mar-31-2009 G igaMedia L td. (N as daqG S : G IG M) G ra vity Co. , L td, Annua l G enera l M eeting, M a r 31, 2009 G ravity Co. , L td, Annua l G enera l Meeting, M a r 31, 2009, a t 10:00 K orea S ta nda rd Time. L oc a tion: Nuritkum S qua re B us ines s Tower 15F , G ravity Co ., L td (N as daqG M: G R VY) 1605 S a nga m-D ong, Ma po-G u, S eoul 121-270 K orea , S outh K orea . Agenda : To cons ider a udit results a nd b reports for the y ea r ended Dec ember 31, 2008; to c ons ider the approv al of B alance S heet, Inc ome S ta tement, a nd S ta tement of Appropria tion of R eta ined E a rnings for the 2008; to a ppointment of Direc tors ; to c ons ider the a pprov a l of a mendment of Artic le of I ncorpora tion; a nd to c onsider the approva l of the compens a tion ceiling for the D irectors in 2009. G ra vity Co. Ltd. Announc es N on-cons olida ted E a rnings G ravity Co. L td. a nnounc ed non-c ons olida ted ea rnings res ults for the fis ca l y ea r ended Dec ember 31, 2008. F or the yea r, the c ompany G ravity Co ., L td (N as daqG M: G R VY) R es ults for the F isc a l Y ea r E nded Dec ember 31, 2008 reported R ev enue wa s K R W 41, 983 million ($33,267, 000), representing a 24. 6% i ncrea s e from K R W 33, 686 million for 2007. R oya lties a nd licens ing fees rev enues for 2008 were K R W 31,587 million ($25, 029,000), representing a 25.6 % inc rea se from K R W 25, 153 million for 2007. This inc rea s e wa s primarily a ttributed to: (i) inc rea sed revenues from J apa n a nd (ii) a ppreciation of Ja panes e Y en a ga ins t K orea n W on in 2008. Also , the increa s es in ga me s ervic es revenue from commerc ia l s ervic e of R equiem in the U .S . a nd R uss ia and E mil C hronic le O nline in T ha ila nd, T a iwa n a nd H ong K ong ha ve c ontributed to the overa ll increas e in rev enues. T he Compa ny recorded a net income of K R W 921 million ($730, 000) for 2008 co mpa red with a net los s of K R W 27, 559 million for 2007.
    • Page 8 J umpT V I nc . R eports E a rnings R esults for the F ourth J umpTV I nc. reported ea rnings results for the fourth qua rter a nd ful l y ea r ended Dec ember 31, 2008. F or the qua rter, the compa ny reported J u mpTV In c . (TS X :J TV) Q ua rter a nd Full Y ea r E nde d D ecember 31, 2008 revenue wa s $5. 8 million compa red to $5.3 million in the s a me period in 2007. T he net loss wa s $7. 2 million (including $3. 8 million of non- ca s h c ha rges ) or $0.13 per s ha re, ba s ic a nd diluted a s c ompa red to $0. 2 million (including $0. 6 million of non-ca s h c ha rges ) or $0.00 per sha re, ba s ic a nd diluted in the sa me period a yea r a go. For the full y ea r, the compa ny reported rev enue wa s $13. 4 million compa red to $7.8 mil lion in the prior yea r. T he net los s wa s $11.6 million (including $5.5 million of non-ca s h c ha rges ) or $0.21 per s ha re, ba s ic a nd diluted a s c ompa red to $4. 5 million (including $2. 6 million of non- ca s h c ha rges ) or $0.11 per s ha re, ba s ic a nd diluted in the prior y ea r. K a boos e Announc es F ina ncia l R es ults for the F ourth K a boose Inc . a nnounc ed fina nc ia l res ults for the fourth qua rter a nd fis ca l yea r ended D ec ember 31, 2008. F or the qua rter, rev enue K abo os e Inc . (T S X:K AB) Q ua rter a nd Fis ca l Y ea r E nded D ecember 31, 2008 ; increa s ed 80% to $21. 52 million from $11.97 million in th e s a me qua rter la s t yea r. E B IT DA inc rea sed 254% from $1. 46 million in the sa me Announc es Impa irment Cha rges qua rter la st yea r to $5.17 million, whic h inc ludes $1. 47 million in foreign exc ha nge ga ins in the fourth qua rte r of 2008, c ompared to a los s of $0.01 mi llion in the s a me qua rter of 2007. N et los s wa s $65. 09 million, or $0. 46 per sha re, compa red to net income of $1.73 million, or $0.02 per s ha re, in the fourth qua rter of 2007, whic h inc ludes the write-down of goodwill a nd long-liv ed a s sets of $65. 54 million des cribed below a nd a morti za tion in the fo urth qua rter of 2008 re la ted to previous a cquis itions of $4.05 million, c ompa red to $2. 00 million in the s a me qua rter of 2007. For the yea r, rev enue increa s ed 144% to $81. 94 million from $33.63 million in fis c a l 2007. E B IT DA inc rea sed 188% from $4. 21 million la st yea r to $12.11 million, whic h includes $1. 42 million in foreign exc ha nge ga ins in 2008, c ompa red to a los s of $0. 30 million in 2007 a nd net loss wa s $74 36 million or $0 53 per s ha re c ompa red to net inc ome of $1 70 million or $0 02 per s ha re in 2007 K ings oft C o. L td. , 2008 E a rnings C a lls, Ap r-01-2009 K ingsoft C o. L td. , 2008 E a rnings C a lls , Apr-01-2009 K ings oft Co . Ltd. (S E H K:3888) K ings oft C o. L td. R eports E a rnings R esults for the Y ea r K ingsoft C o. L td. reported ea rnings results for the y ea r 2008. F or the yea r, the compa ny reported tha t the net profit jumped 87% from one K ings oft Co . Ltd. (S E H K:3888) 2008 ; to Dec la re D ividend ; P la ns to L a unch Fiv e N ew yea r ea rlier to C NY 310 million. The compa ny rea liz ed C NY 820.9 million i n rev enue in 2008, up 47% y ea r on yea r. T he online ga me G a mes busines s, whic h c ontributed C N Y 553. 7 million to the c ompa ny , a c counted for 67% of the compa ny's tota l rev enue. The softwa re busines s rea lized C N Y 261. 2 million in sa les inc ome, up 67% from a yea r ea rlier. The compa ny wi ll is sue a dividend of a bout HK D 0.15 per s ha re. The compa ny pla ns to l a unch fiv e new ga mes . Ma gnitude I nforma tion S ys tems I nc. A cc epts the O n M a rch 24, 2009, M a gnitude Informa tion S ys tems I nc . a cc epted the res igna tion of Q uentin K elly a s a director of the B oa rd of D irectors . Magnitude Information S ys tems Inc . R es igna tion of Q uentin K elly a s a D irec tor of the B oa rd Mr. K elly res igned beca us e of persona l rea sons , effec tiv e immedia tely. (OT CB B:MAG Y) Ma gnitude I nforma tion S ys tems I nc. a nnounc ed dela yed O n 03/30/2009, Ma gnitude I nforma tion S y stems Inc . a nnounc ed tha t they will be una ble to file their next 10-K by the dea dline required by the Magnitude Information S ys tems Inc . a nnua l 10-K filing S E C. (OT CB B:MAG Y) NeX plore Corpora tion Anno unces P ublic B eta L a unc h of NeX plore Corpora tion a nnounc ed the public beta la unc h of N eX plore Ads vers ion 2. 0, a full lifec yc le sea rc h a dv erti sing pla tform tha t ena bles N eXplo re Corporation (OT CP K :NXP C ) Nex plore Ads V ersion 2.0 ma rk eters to ea sily crea te a nd ma na ge pa id sea rc h a d c a mpa i gns tha t c a n include a blen d of text a ds , bra nded ima ges , v ideo c ommerc ia ls a nd other ric h-media a d forma ts fea turing built-in, rea l-time c ons umer-intera ction ca pa bilities , including vide o c ha t, c a ll sc heduling, ema il, insta nt mess a ging a nd more. NeX plore Ads s ea ml ess ly integra tes with NeX plore S ea rch, a vi sua lly enga ging W eb 2. 0 sea rc h engine optimized for multi-media displa y a nd ea s y soc ia l sha ring. N eX plore S ea rc h ha s been in public beta s inc e J a nua ry 2008. I n J a nua ry 2009 NeX plore S ea rch ha d more the 5.5 million unique monthly v is itors . O pen T ext J oins C isc o Tec hnology Dev eloper P rog ra m O pen T ext C orp. ha s joined the C is c o T echnology D eveloper P rogra m a s pa rt of the progra m's IP C ommunica tions s oluti on c a tegory . In Open T ext C orp. (N as daqG S :OT E X) a ddition, O pen T ext F a x S erver ha s suc c ess fully completed interopera bility tes ting with C isc o Unified C ommunic a tions Ma na ger 7.0 a nd Cis co Unity C onnection 7. 0. T he C isc o Tec hnology Dev eloper P rogra m unites Cis co with third-pa rty developers of ha rdwa re a nd so ftwa re to deliver tes ted interopera ble s olutio ns to joint c ustomers. M embers of the progra m s ha re C isc o's s trong commitment to c us tomer s erv ice a nd sa tisfa c tion a nd a re required to undergo interopera bility tes ting ba s ed on criteria set forth by C isc o. W ith C i sc o T echnol ogy Dev eloper P rogra m member offerings s uc h a s O pen Tex t Fa x S erv er, v ersions 9. 3 a nd 9. 4, cus tomers c a n more quic kly deploy a broa d ra nge of C isc o Compa tible bus iness a pp lica tions tha t ca n enha nc e the c a pa bilities, performa nce, a nd ma na gement of their C is c o network . O penwa v e S y stems Inc . I ntroduc es N ew Acc elera tor O penwa ve S y stems Inc . a nnounc ed O penwa ve(R ) Ac cel era tor, the la tes t serv ice ena bler for Openwa v e(R ) Integra , a next genera tion mobile Openwave S ys tems In c . S ervic e to Help O pera tors Improve the Mo bile I nternet internet s ervic e ma na gement pla tform. O penwa ve Acc elera tor, whic h c ompliments ex isting optimiza tion func tions within c ore I ntegra , (N as daqG S :OP W V) E xperienc e increa s es da ta tra nsfer ra tes ov er wireless da ta networks while dec rea s ing ba ndwidth cons umption. T he result is a n optimiz ed network : fa s ter brows ing s peeds for the subs criber a t a lower tota l c os t for the opera tor. Acc elera tor is pa rt of O penwa v e's Mobile Internet va lue- a dded S erv ices tha t a re a va ila ble for the I ntegra Mobi le I nternet S erv ic e P la tform. I ntegra 's plug-in fra mework mea ns tha t a ll da ta tra ffic routed through Integra ca n benefit from A cc elera tor. O pe nwa ve Ac celera tor reduc es s ervic e la tenc y a nd the v olume of da ta going ov er the a ir to the mobile devic e by a pplying enha nced c ontent c ompress ion tec hniques (ima ge a nd ja va s cript in pa rticula r) a nd content c a ching to speed up a c c ess a nd c ontent deliv ery without a ffec ting the v isua l qua lity . T hese multiple a cc elera tion techniques employ ed by O penwa ve Acc elera to r optimiz e the number of tra nsa c tions neces sa ry to deliver content a nd the volume of da ta per tra ns a ction with the res ult tha t the re O penwa v e S howca s es L a test S olutions a t C T IA W ireless O penwa ve S y stems Inc . a nnounc ed tha t the c ompa ny will showca s e its la test mobile internet, mess a ging a nd loc a ti on s oftwa re a pplica tions Openwave S ys tems In c . 2009 a nd infra struc ture a t C T IA W ireles s 2009 in L a s V ega s , N eva da , April 1-3, 2009. O penwa ve is helping opera tors deliv er a n internet (N as daqG S :OP W V) experienc e to their mobile subs c ribers tha t a re ta nta mount to the P C experienc e. Openwa v e c omplete mobi le internet, mes sa ging a nd loca tion s olutions a re helpi ng opera tors with ev erything from prov iding a better understa nding of their subs c riber's beha viors , whic h c a n tra ns la te into more c us tomer v a lue through the delivery of more releva nt serv ices a nd inc rea sed serv ice us a ge-to providing new wa y s for a n opera tor to ma ximize ba ndwidth c ons umption a nd lower tota l cos t of ownership for their mobile internet infra struc ture. S NAP I ntera c tiv e Inc . R eports C onsolida ted E a rnings S NAP I ntera c tiv e I nc . reported cons olida ted ea rning s res ults for the fourth qua rter ended D ecember 31, 2008. R ev enue inc rea s ed from S NAP Interac tive, Inc . (OT CB B:S TVI) R es ults for the F ourth Q ua rter E nded Dec ember 31, 2008 $389,181 for th e fourth qua rter 2007 to $1,087, 144 for the fourth qua rter 2008, a 179% inc rea se. R ev enue inc rea sed from $424,564 for the full yea r ended D ecember 31, 2007 to $3, 011, 627 for the full yea r ended D ecember 31, 2008, a 609% inc rea s e. T he increa s e in rev enue wa s prima rily due to the growth of our a pplica tions a nd the inc rea sed usa ge in 2008 c ompa red to the sa me time period in 2007. Net Inc ome inc rea sed to $796, 960 for the yea r from a los s of $914, 997 for the y ea r 2007, a n inc rea se of $1,711, 957. E B I T D A for the yea r wa s $946, 510. O n a n E B I T DA ba sis , the c ompa ny ea rned $0. 09 per s ha re for the fis ca l yea r ended Dec ember 31, 2008. I nco me from opera tions for the yea r wa s $933, 879 c ompa red to loss from opera tions of $916, 313 in 2007. I ncome before provis ion for income ta xes for the yea r wa s $937, 060 compa red to loss before provis ion for income ta xes of $913,622 for the s a me period a yea r a go. Net Inc ome per diluted s ha re for the y ea r wa s $0. 07 c ompa red to $0. 09 per diluted s ha re for the sa me perio d a yea r a go. S NAP I ntera c tiv e Inc . R eports R evenue R es ults for the S NAP I ntera c tiv e I nc . reported revenue results for the fourth qua rter ended Dec ember 31, 200 8. F or the fou rth qua rter revenue wa s S NAP Interac tive, Inc . (OT CB B:S TVI) Fourth Q ua rter E nded D ecember 31, 2008 $1,087, 144, a s c ompa red to $871, 324 in third qua rter of 2008 a 25% inc rea s e. S ohu.c om I nc . Announces Ma na gement Cha nges S ohu.c om I nc. a nnounced tha t C ha rles Z ha ng, W a ng T a o, H e J ie, Chen D ewen a nd H ong X ia ojia n a re a ppointed a s boa rd c ha irma n, chief S oh u.c om Inc . (N as daqG S : S OH U) exec utiv e offic er, c hief fin a ncia l offic er, chief opera ting officer, a s well a s c hief tec hnology offic er. T heS treet.c om, Inc . (Nas daqG M:T S CM) TheS treet.c om I nc. to C ut a bout 6% of its W orkforc e TheS treet. c om Inc . a nnounc ed it will cut a bout 6% of its work force. T heS treet.c om, Inc . (Nas daqG M:T S CM) TheS treet.c om I nc. Announ ces R esigna tion of S tev en E ffectiv e M a rch 30, 2009, S teven E lkes a nd T heS treet. com I nc . ended M r. E lk e's enga gement a s C hief R evenue O ffic er of the compa ny. E lk es a s Chief R ev enue O ffic er W izz a rd S oftwa re C orpora ti on, Q4 2008 E a rnings C a lls, W izza rd S oftwa re C orpora tion, Q 4 2008 E a rnings C a l ls, Apr-01-2009 W izz ard S oftware Co rporation Apr-01-2009 (A ME X: WZ E ) W oozy Fly , Inc . a nnounc ed dela y ed a nnua l 10-K filing O n 04/01/2009, Wo ozyF ly, Inc . a nnounc ed tha t they will be una ble to file their nex t 10-K by the dea dline required by the S E C . W ooz yFly, In c . (OTC BB :WZYF ) Figure 7. Key Developments Source. Capital IQ
    • Page 9 VALUATION MMOG companies lead market-cap charts: Nine companies in our Web 2.0 universe top US$1 billion in market capitalization (Figure 8). Sixty-five of the 90 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. Market C ap (US D m) Tencent Holdings Ltd. 3519.3 Neteas e.com Inc. 2963.3 S handa Interactive Entertainment 2274.9 IA C/InterA ctiveCorp. S ohu.com Inc. 1762.1 Open Tex t Corp. 1745. 9 Giant Interactive G roup, Inc. 1640.8 G ree, Inc. 1275.9 1236.3 Modern Times G roup Mtg A B 852. 0 Perf ect World Co., Ltd. 798. 1 V alueClick Inc. 592. 9 Mix i, Inc. K ings of t Co. Ltd. 455.8 Chines e G amer International 442. 7 United Online Inc. 416.5 The9 Limited 379.5 NEOWIZ G ames Corporation 368.7 302.0 G igaMedia Ltd. 293. 3 NetDragon WebS of t, Inc. 264.8 S K Communications Co., Ltd. S hutterf ly , Inc. 245. 2 XING A G 200. 7 G amania Digital Entertainment Co. , 150.9 G ungHo Online Entertainment, Inc. 144. 3 CDC Corp. 123.0 104. 0 Y edangOnline Corp. 103. 3 Openw ave S y s tems Inc. 97. 6 DA DA S pA 86.9 GameOn Co Ltd. A ctoz S oft Co., Ltd. 84.5 Moggle, Inc 83.5 DigitalTow n, Inc. 67. 9 K aboos e Inc. 65. 4 60. 7 TheS treet. com, Inc. 55. 5 OA O R B C Information S y s tems 54. 9 HanbitS of t, Inc. 53. 3 B ey ond Commerc e, Inc . Tree. Com, Inc. 51. 1 J umpTV Inc. 50. 4 S park Netw orks , Inc. 46.2 PhotoChannel Netw orks Inc. 43.2 NeXplore Corporation 41.8 38.9 Cy berplex Inc. 38.2 B roadWebA s ia Inc. 32. 6 Dolphin Digital Media, Inc. 28. 6 Northgate Technologies Limited Ngi G roup Inc. 28. 5 S ites earch Corporation 28. 2 Webz en Inc. 26. 7 G eoS entric Oy j 25. 0 24. 8 A Q Interactive, Inc. 23. 6 G rav ity Co. , Ltd 22. 0 Frogs ter Interactive Pictures A G 21. 7 Wiz z ard S of tw are Corporation Fluid Mus ic Canada, Inc. 21. 2 DXN Holdings B hd 20. 9 LookS mart, Ltd. 20. 5 Eolith Co. Ltd. 19. 1 J umbuck Entertainment Pty Ltd. 16.2 14.4 IdeaEdge, Inc. 14.2 Ex tens ions , Inc. 12.6 Quepas a Corp. Worlds .com Inc. 8.9 Lingo Media Corporation 8.6 A cceleriz e New Media, Inc. 8.6 Y nk K orea Inc. 8.2 S NA P Interactive, Inc. 8.1 7.3 S pectrumDNA , Inc. 6.9 UOMO Media, Inc 6.6 CornerWorld Corporation 6.5 Magnitude Information S y s tems MOK O.mobi Limited 5.9 IA S Energy , Inc. 4.9 is eemedia Inc. 4.1 LiveWorld Inc. 4.0 3.8 B etaw ave Corporation 3.1 Wy nds torm Corporation 3.0 B right Things plc 2.6 Wooz y Fly , Inc. V OIS , Inc. 1.9 DigitalPos t Interactive, Inc. 1.5 ZipLoc al Inc. 1.0 Unis erve Communications Corp. 0.8 B igs tring Corp. 0.8 0.6 Financial Media G roup, Inc. 0.5 The Parent Company 0.2 Total S port Online A S A s s ociated Media Holdings Inc. 0.1 China G atew ay Corporation 0.0 S ocial 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 8. Market Cap Ranking Source. Capital IQ
    • Page 10 TEV/Revenue (LTM) averages 3.6x: The overall average TEV/Revenue (LTM) multiple for our group is 3.6x – down from from 4.7x last week (Figure 9). However, this is skewed by Gree (3633-TSE) at 41.6x and Bigstring (BSGC-OTCBB) at 29.8x. The median is only 1.2x. 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) 45.0 41.6 40.0 35.0 29.8 30.0 25.0 20.0 14.5 15.0 12.0 11. 3 9.9 8. 0 10.0 5.46. 06.1 4.04. 0 4.24.64.7 A verage, 3. 6 2.83. 13.13.13.43.53. 6 5.0 1.71.71. 92.0 2. 12.42.62.6 0. 40.40.40.50.60.60.70. 70.80.80.80.91. 01.01. 11.11.11.11.11. 11.21.2 0.00.00.00. 00.10. 10.20.20.20.3 0.0 NE O WIZ G ames C orporation J umbuc k E ntertainment P ty L td. G ungHo O nline E ntertainment, Inc . G amania Digital E ntertainment C o. , L td. MO K O .mobi L imited U O MO Media, Inc C hines e G amer International Unis erve C ommunications C orp. O AO R B C Information S y s tems DXN Holdings B hd Northgate T ec hnologies L imited T ree.C om, Inc. C DC C orp. G ameO n C o Ltd. S K C ommunic ations C o., Ltd. F luid Mus ic C anada, Inc. DigitalP os t Interac tive, Inc. T he P arent C ompany Modern T imes G roup Mtg AB G eoS entric O y j S NM G lobal Holdings L ingo Media C orporation C ornerWorld C orporation S handa Interactive E ntertainment Ltd. U nited O nline Inc. O pen T ex t C orp. P hotoC hannel Network s Inc. S NAP Interac tive, Inc. J umpT V Inc. C hina G ateway C orporation IAC /InterActiveC orp. C y berplex Inc. S park Network s , Inc. E olith C o. Ltd. V alueC lic k Inc. G igaMedia Ltd. NetDragon WebS oft, Inc. XING AG S ohu.c om Inc. Mix i, Inc. is eemedia Inc. T enc ent Holdings Ltd. G ree, Inc. F rogs ter Interac tive P ictures AG As s oc iated Media Holdings Inc. HanbitS oft, Inc. S oc ial Media V enures , Inc . O penwave S y s tems Inc . LiveWorld Inc . Y nk K orea Inc . B right T hings plc Z ipLoc al Inc . K aboos e Inc . Y edangO nline C orp. B igs tring C orp. T otal S port O nline AS S hutterfly , Inc . K ings oft C o. Ltd. Ac celeriz e New Media, Inc . DADA S pA Actoz 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: We 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 (22), trading at an average multiple of 8.6x (up slightly from 8.4x last week). On a geographic basis, the United States has the most companies (41), trading at an average of 3.4x revenue (down from 5.5x last week) (Figure 11). Eleven of the companies are Canadian (average 3.0x revenue). Average TEV/LTM Revenue - By Exchange Average TEV/LTM Revenue - By Country 18.0 14.0 15.4 12.0 16.0 12.0 14.0 12.0 11.8 12.0 10.0 8.6 10.0 (x) 8.0 8.0 6.4 (x) 5.6 4.6 6.0 6.0 4.6 3.6 3.5 2.8 2.3 4.5 4.0 4.1 2.2 1.9 1.7 1.4 1.1 1.1 1.1 0.6 3.6 3.5 3.4 4.0 2.0 0.5 0.2 3.0 2.8 0.0 2.0 1.4 1.1 0.6 OTCNO OTCPK OTCBB GTSM NasdaqGM TSE SEHK HLSE KOSE OSE NasdaqGS OM CM XTRA TSX AMEX KLSE AIM TSXV ASX 0.5 0.4 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 2 1 1 2 2 4 2 9 5 7 1 13 1 1 1 5 # Companies 1 6 1 9 3 1 2 41 11 2 9 1 1 1 1 # Companies Figures 10 & 11. TEV/Revenue Ranking (Exchange, Country) Source. Capital IQ
    • Page 11 TEV/EBITDA (LTM) averages 9.1x: The average multiple for the 30 companies with positive EBITDA (and multiples under 100x) is 9.1x LTM EBITDA (slightly down from 9.2x last week), led by SNAP Interactive’s (STVI-OTCBB) 30.2x multiple (Figure 12). Sixteen of the companies have EBITDA multiples under 7x. The median multiple is 8.0x (vs. 6.6x last week). T E V/L T M E B IT DA (x) 35. 0 30. 2 29. 2 29. 5 30. 0 25. 0 21. 1 20. 0 17. 7 15. 0 11. 1 11. 1 9. 7 9. 6 9. 6 9. 6 9. 6 A verage, 9.1 8. 8 10. 0 8. 0 8. 0 8. 0 8. 1 6.6 6.2 5.9 5. 6 5. 5 4. 9 4. 7 4. 0 3. 9 3. 8 3. 7 5. 0 2. 5 1. 7 1. 2 0.1 0.1 0. 0 NE O WIZ G ames C orporation J umbuc k E ntertainment P ty L td. G ungHo O nline E ntertainment, Inc. G amania Digital E ntertainment C o. , L td. C hines e G amer International U nis erve C ommunic ations C orp. O AO R B C Information S y s tems Northgate T ec hnologies Limited DXN H oldings B hd G ameO n C o Ltd. C DC C orp. S K C ommunic ations C o. , Ltd. Modern T imes G roup Mtg AB S handa Interac tive E ntertainment Ltd. United O nline Inc. O pen T ex t C orp. S NAP Interactive, Inc. NetDragon WebS oft, Inc . V alueC lick Inc . IAC /InterAc tiveC orp. C y berplex Inc . T enc ent H oldings Ltd. S park Network s , Inc. G igaMedia Ltd. S ohu.c om Inc. XING AG Mix i, Inc. Y edangO nline C orp. K aboos e Inc . S hutterfly , Inc . K ings oft C o. Ltd. DADA S pA Ac toz S oft C o., Ltd. Figure 12. TEV/EBITDA Ranking Source. Capital IQ TEV/EBITDA (LTM) by country/exchange: Figure 13 shows the average TEV/EBITDA multiples by stock exchange. The OTCBB has the largest number of companies (22), trading at an average multiple of 30.2x. On a geographic basis, the United States has the most companies (41), trading at an average of 9.7x EBITDA (Figure 14). Ten of the companies are Canadian (average 14.9x EBITDA). Average TEV/LTM EBITDA - By Exchange Average TEV/LTM EBITDA - By Country 35.0 30.2 16.0 14.9 30.0 14.0 25.0 29.5 12.0 11.4 20.0 10.0 (x) 10.4 14.6 9.8 9.7 15.0 9.6 13.6 9.6 (x) 8.0 10.410.3 9.6 10.0 6.6 6.4 6.3 6.6 6.3 6.0 6.2 4.0 3.9 3.8 2.5 5.0 1.2 0.1 4.0 4.0 3.9 0.0 2.0 OTCBB GTSM SEHK KOSE TSE NasdaqGS OSE RTS OM CM TSX XTRA KLSE AMEX BSE 1.2 TSXV ASX 2.5 0.0 Germany Canada China United Hong Japan Malaysia India Italy South Korea Kong States Taiwan Australia Sweden # Companies 22 5 2 3 7 4 2 1 5 13 1 1 1 2 2 1 1 # Companies 11 3 9 9 41 2 1 1 6 1 1 2 1 Figures 13 & 14. TEV/EBITDA Ranking (Exchange, Country) Source. Capital IQ P/E (LTM) averages 16.0x: The average multiple for the 31 companies with positive earnings (and multiples under 100x) is 16.0x LTM EPS (unchanged from 16x last week), led by TheStreet.com’s (TSCM-NASDAQ) 64.1x multiple (Figure 15). Sixteen of the companies have P/E multiples under 10x. The median is just 10.4x.
    • Page 12 P /E L T M (x) 70.0 64.1 60.0 55.1 50.0 44.3 39.8 40.0 35.7 29.2 30.0 26.2 20.8 19.3 19.7 15.5 17.0 20.0 A verage, 16.0 11.4 11.6 11.9 9.7 11.1 9.6 9.1 8.5 8.2 7.4 10.0 5.7 4.0 3.5 3.3 2.3 2.5 1.9 1.5 1.6 1.1 0.0 NE O WIZ G ames C orporation J umbuck E ntertainment P ty Ltd. G amania Digital E ntertainment C o., Ltd. 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. Worlds .com Inc. C y berplex Inc. G igaMedia Ltd. NetDragon WebS oft, Inc. S park Network s , Inc. S ohu.com 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 15. P/E Ranking Source. Capital IQ P/E (LTM) by country/exchange: Figure 16 shows the average P/E multiples by stock exchange. The OTCBB has the largest number of companies (22), trading at an average multiple of 23.8x. On a geographic basis, the United States has the most companies (41), trading at an average of 32.5x earnings (Figure 17). Eleven of the companies are Canadian (average 22.0x EPS). Average P/E - By Exchange Average P/E - By Country 35.0 70.0 32.5 64.1 60.0 30.0 50.0 25.0 40.0 22.0 (x) 20.8 23.8 22.8 20.0 18.4 20.8 30.0 (x) 20.4 15.6 15.6 15.6 15.6 15.0 20.0 15.1 11.1 8.2 7.4 5.7 9.1 10.0 4.0 10.0 7.4 3.5 5.7 4.0 0.0 5.0 3.5 OTCBB NasdaqGM GTSM SEHK TSE KOSE NasdaqGS CM OM XTRA AMEX TSX KLSE ASX 0.0 Germany United Canada Japan China Malaysia Italy South Korea States Taiwan Australia Sweden 5 22 2 2 3 5 7 13 2 4 2 1 1 1 # Companies 41 11 2 3 6 9 9 2 1 1 1 # Companies Figures 16 & 17. P/E Ranking (Exchange, Country) Source. Capital IQ
    • Page 13 UPCOMING EVENTS Upc o min g E vents Event Date L ocatio n Webs ite M esh 2009 April 7-8 T oronto www.mes hconference. c om Figure 18. Upcoming Events Source. Company reports E arnings Calendar C ompany D ate & T ime Qu arter C onf C all D etails T ree. C om, Inc . (N a sda qG M :T R E E ) F rida y, M a y 01, 2009 11:00 AM (E DT ) Q 1 2009 877-407-0782 Figure 19. Earnings Calendar Source. Company reports
    • Page 14 C omparable C ompany Analys is > Web 2.0 P ric e P erformance C ompany Name C urrenc y Ticker E xc hange US D Market C ap ($m) C urrent P rice 1 Wk 1 Mth 3 Mth 6 Mth 1 Yr 52 Week Accelerize New Media , Inc. US D AC LZ OT C B B 8. 6 0.32 28.0% 3.2% -8. 6% -31. 9% -55. 6% -59.0% Actoz S oft C o., L td. KR W A052790 K OS E 84.5 12,500.00 12.1% 25.6% 18.5% 46.5% 52. 4% -11.3% AQ Interactive, Inc. JPY 3838 TS E 24.8 45,900.00 14.8% 43.9% 52.5% 42.5% -76. 2% -80.5% As s ociated Media Holdings Inc. US D AS MH OT C P K 0. 1 0.00 0. 0% -72.0% -53.3% -93. 6% 27. 3% -97.2% B igs tring C orp. US D BS GC OT C B B 0. 8 0.02 0. 0% 22.0% -11.8% -57. 1% -91. 4% -93.2% B eta wa ve C orpora tion US D B W AV OT C B B 3. 8 0.13 -13. 3% 8.3% -40.9% -48. 0% -51. 9% -69.0% B eyond C ommerce, Inc. US D B Y OC OT C B B 53.3 1.29 152.9% 158. 0% 12.2% -35. 5% -35. 5% -60.9% B right T hings plc GBP AIM:B G T AIM 3. 0 0.02 13.6% -2.0% 30.4% 50.0% -40. 0% -64.7% B roa dW ebAs ia Inc. US D BWBA OT C P K 38.2 0.45 -11. 8% -40.0% -18.2% -69. 8% -85. 0% -84.5% C DC C orp. US D C HIN.A Nas daqG S 123.0 1.14 5. 6% 50.0% -11.6% -15. 6% -70. 1% -72.9% C hina G a tewa y C orpora tion US D CGWY OT C B B 0. 0 0.00 100.0% 100. 0% 0.0% -86. 7% -96. 7% -95.6% C hines e G a mer Interna tiona l TWD G T S M:3083 GTS M 442.7 173.00 -5.5% 30.1% 83.1% 160.2% 58. 7% -9.7% C ornerW orld C orpora tion US D CWR L OT C B B 6. 6 0.14 -6.7% -65.9% -68.9% -77. 0% -88. 8% -88.8% C yberplex Inc. C AD T S X:C X TS X 38.9 0.90 2. 3% 157. 1% 136. 8% 87.5% 18. 4% -10.0% DADA S pA E UR C M:DA CM 97.6 4.50 -5.2% -7.3% -39.1% -40. 6% -65. 7% -72.2% DXN Holdings B hd MY R DXN K LS E 20.9 0.32 14.3% -3.0% -8. 6% -15. 8% -37. 3% -42.9% Dibz Interna tional, Inc. US D DIB Z OT C P K 0. 0 0.00 -90. 0% -90.0% -90.0% -98. 0% -98. 0% -98.0% DigitalP os t Interactive, Inc. US D DG L P OT C B B 1. 5 0.02 100.0% 400. 0% 0.0% -60. 0% -89. 5% -92.9% DigitalT own, Inc. US D DG T W OT C B B 67.9 2.50 -16. 7% 25.0% -23.1% -41. 2% 13. 6% -59.0% Dolphin Digita l Media , Inc. US D DP DM OT C B B 32.6 0.67 13.6% 31.4% -16.3% -31. 6% NM -40.7% E olith C o. L td. KR W A041060 K OS E 19.1 535.00 1. 9% 2.9% -6. 1% -7.0% -50. 9% -57.9% E xtens ions , Inc. US D E XT I OT C P K 14.2 0.15 -25. 0% -25.0% 185. 7% 50.0% 0.0% -85.1% F ina ncial Media G roup, Inc. US D F NG P OT C B B 0. 6 0.01 18.8% -62.0% -87.3% -97. 3% -95. 1% -99.0% F luid Mus ic C ana da, Inc. C AD T S X:F MN TS X 21.2 0.50 25.0% 16.3% 35.1% -16. 7% NM -75.5% F rogs ter Interactive P ictures AG E UR FR G XT R A 22.0 7.01 6. 4% 90.0% 8.0% 59.3% 57. 2% -8.4% G a mania Digital E nterta inment C o. , L td. TWD 6180 GTS M 150.9 33.00 0. 5% 37.8% 51.4% 96.4% 9.3% -10.7% G a meO n C o L td. JPY 3812 TS E 86.9 90,500.00 -3.3% 1.1% -31.4% 41.4% -13. 0% -44.6% G eoS entric O yj E UR G E O 1V HLS E 25.0 0.03 0. 0% -25.0% -25.0% -25. 0% -57. 1% -57.1% G iant Intera ctive G roup, Inc. US D GA NY S E 1,640.8 7.26 6. 3% 1.7% 13.6% 27.1% -43. 5% -57.8% G iga Media Ltd. US D G IG M Nas daqG S 302.0 5.59 -5.4% 15.7% -19.3% -16. 6% -63. 5% -71.9% G ra vity C o. , Ltd US D GR VY Nas daqG M 23.6 0.85 23.2% 32.8% 44.1% 3. 7% -35. 6% -57.5% G ree, Inc. JPY T S E :3632 TS E 1,275.9 5,760.00 2. 9% 20.5% 7.3% NM NM -8.6% G ungHo O nline E nterta inment, Inc. JPY 3765 OS E 144.3 126,900.00 6. 3% 4.4% 28.8% -18. 0% -48. 8% -70.8% Ha nbitS oft, Inc. KR W A047080 K OS E 54.9 3,265.00 -4.4% 12.6% -5. 9% -3.7% -34. 8% -53.4% IAC /InterActiveC orp. US D IAC I Nas daqG S 2,274.9 16.14 5. 9% 14.4% -1. 3% 9. 2% -60. 8% -68.0% IAS E nergy, Inc. US D IAS C . A OT C B B 4. 9 0.07 55.6% 0.0% 250. 0% -50. 0% -69. 6% -80.0% Idea E dge, Inc. US D O T C B B : IDAE OT C B B 14.4 0.34 -2.9% -15.0% -57.5% -83. 7% -62. 2% -88.0% is eemedia Inc. C AD IE E T S XV 4. 1 0.10 11.1% 25.0% 33.3% 17.6% -71. 0% -77.3% J umbuck E nterta inment P ty Ltd. AU D AS X: J MB AS X 16.2 0.46 -8.0% 2.2% 17.9% -8.0% -23. 3% -29.8% J umpT V Inc. C AD T S X:J T V TS X 50.4 0.55 1. 9% 44.7% 17.0% 10.0% -14. 1% -57.0% K a boos e Inc. C AD T S X:K AB TS X 65.4 0.58 45.0% 52.6% 45.0% -13. 4% -58. 0% -62.3% K ings oft C o. L td. HK D 3888 S E HK 455.8 3.29 6. 8% 37.7% 18.3% 57.4% 27. 5% -23.7% L ingo Media C orporation C AD T S XV :L M T S XV 8. 6 0.83 18.6% -4.6% -17.0% -51. 2% -51. 2% -62.3% L iveW orld Inc. US D LV W D OT C P K 4. 0 0.13 0. 0% 225. 0% 333. 3% 0. 0% -13. 3% -82.7% L ookS mart, L td. US D LOOK Nas daqG M 20.5 1.20 18.8% 22.4% -31.8% -38. 5% -65. 7% -75.0% Ma gnitude Information S ys tems Inc. US D MAG Y OT C B B 6. 5 0.02 0. 0% -16.7% -40.0% -40. 0% -40. 0% -50.0% Mixi, Inc. JPY 2121 TS E 592.9 389,000.00 2. 9% 17.9% -35.4% -11. 2% -57. 0% -63.6% Modern T imes G roup Mtg AB SEK MT G B OM 1,236.3 151.00 11.6% 30.2% -12.5% -22. 0% -64. 3% -66.8% Moggle, Inc US D MMO G OT C B B 83.5 2.30 15.0% 15.0% 53.3% NM NM 0.0% MO K O .mobi Limited AU D MK B AS X 5. 9 0.10 7. 7% 96.0% 96.0% 78.2% 263.0% -2.0% NE O W IZ G a mes C orpora tion KR W A095660 K OS E 368.7 50,000.00 13.8% 60.0% 132. 6% 155.1% 46. 0% 0.0% NetDragon W ebS oft, Inc. HK D 777 S E HK 293.3 4.30 0. 0% 51.9% 44.3% -8.5% -58. 3% -68.4% Netea s e.com Inc. US D NT E S Nas daqG S 3,519.3 28.60 13.1% 35.9% 42.8% 43.9% 48. 3% -0.5% NeXplore C orpora tion US D NXP C OT C P K 41.8 0.75 25.0% -21.1% -25.0% 36.4% NM -48.3% Ngi G roup Inc. JPY 2497 TS E 28.5 23,200.00 -4.5% 30.3% -59.2% -67. 8% -84. 0% -86.1% Northga te T echnologies L imited INR 590057 BS E 28.6 41.10 25.3% 24.2% -41.4% -71. 0% -89. 9% -91.3% O pen T ext C orp. US D OT E X Nas daqG S 1,745.9 33.64 -1.4% 12.1% 6.3% 21.0% 0.4% -13.9% O penwa ve S ys tems Inc. US D OP W V Nas daqG S 103.3 1.24 37.8% 64.2% 58.0% 36.3% -48. 3% -55.7% P erfect W orld C o., L td. US D PWRD Nas daqG S 852.0 16.15 18.9% 48.7% -13.8% -17. 2% -37. 4% -51.8% P hotoC ha nnel Networks Inc. C AD T S XV :P N T S XV 43.2 1.60 0. 0% 0.0% 1.3% -20. 0% -55. 9% -61.4% Q uepas a C orp. US D QP S A Nas daqC M 12.6 0.99 3. 1% 6.5% -56.4% -63. 5% -67. 9% -71.4% O AO R B C Information S ys tems US D R BCI R TS 55.5 0.40 -9.1% 33.3% -20.0% -90. 6% -95. 7% -95.8% S handa Interactive E nterta inment L td. US D S NDA Nas daqG S 2,963.3 42.71 16.0% 36.6% 30.1% 66.3% 56. 9% -2.9% S hutterfly, Inc. US D S F LY Nas daqG S 245.2 9.75 4. 4% 26.3% 23.1% 33.9% -29. 7% -45.7% S K C ommunications C o., L td. KR W A066270 K OS E 264.8 8,400.00 4. 1% 40.0% 46.9% -21. 5% -49. 4% -57.4% S NAP Interactive, Inc. US D S TVI OT C B B 8. 1 0.75 -6.3% -21.1% 15.4% 275.0% 15. 4% -30.6% S NM G loba l Holdings US D S NMN OT C P K 0. 0 0.00 0. 0% 0.0% 150. 0% -99. 8% -100.0% -100. 0% S ocia l Media V enures , Inc. US D S MV I OT C P K 0. 0 0.52 -56. 7% -13.3% -50.0% -14. 8% NM -89.6% S ohu. com Inc. US D S O HU Nas daqG S 1,762.1 46.23 15.3% 5.1% -3. 7% -8.2% -6.1% -49.5% S ites earch C orpora tion US D S TPC OT C B B 28.2 3.50 -30. 0% NM NM NM NM -30.0% S park Networks , Inc. US D LOV AME X 46.2 2.25 -2.2% -7.8% -13.5% -37. 5% -48. 7% -51.6% S pectrumDNA, Inc. US D S P XA OT C B B 7. 3 0.15 -21. 1% -25.0% 0.0% -25. 0% NM -75.0% T encent Holdings L td. HK D 700 S E HK 13, 995.5 60.30 8. 6% 36.4% 16.0% 18.2% 24. 1% -16.3% T he P a rent C ompany US D K IDS . Q OT C P K 0. 5 0.02 -5.0% 26.7% -62.4% -98. 1% -99. 4% -99.5% T he9 L imited US D NC T Y Nas daqG S 379.5 14.15 14.4% 49.1% -0. 6% -7.2% -24. 5% -50.4% T heS treet.com, Inc. US D TSCM Nas daqG M 60.7 1.99 0. 0% 8.2% -43.0% -55. 1% -77. 3% -79.0% T ota l S port O nline AS NO K T OS O O T C NO 0. 2 0.04 0. 0% 0.0% -20.0% -20. 0% -33. 3% -60.0% T ree.C om, Inc. US D TREE Nas daqG M 51.1 5.12 14.5% 29.0% 28.0% 152.2% NM -53.9% U nis erve C ommunica tions C orp. C AD T S XV :U S S T S XV 0. 8 0.04 -20. 0% -20.0% 0.0% -50. 0% -88. 6% -91.1% U nited O nline Inc. US D U NT D Nas daqG S 416.5 5.07 16.6% 24.9% -15.9% -41. 0% -52. 8% -59.4% U O MO Media, Inc US D U O MO OT C B B 6. 9 0.08 -38. 5% 14.3% -33.3% -55. 6% -77. 1% -90.0% V a lueC lick Inc. US D V C LK Nas daqG S 798.1 9.20 17.2% 57.5% 24.0% 22.8% -45. 9% -56.2% V O IS , Inc. US D V O IS OT C B B 1. 9 0.23 91.7% -69.3% -42.5% -72. 9% NM -95.9% W ebzen Inc. US D W ZE N Nas daqG M 26.7 2.25 28.6% 81.5% 125. 0% 150.0% -25. 5% -49.4% W izza rd S oftwa re C orpora tion US D W ZE AME X 21.7 0.46 7. 0% 4.5% -50.0% -50. 5% -79. 1% -80.8% W oozyF ly, Inc. US D W ZY F OT C B B 2. 6 0.15 0. 0% 0.0% NM NM NM -96.3% W orlds . com Inc. US D W DDD OT C B B 8. 9 0.17 -5.6% 41.7% -15.0% -43. 3% -51. 4% -62.2% W ynds torm C orpora tion US D W Y ND OT C B B 3. 1 0.17 41.7% 41.7% 41.7% -32. 0% NM -80.0% XING AG E UR O 1B C XT R A 200.7 29.29 1. 7% 20.0% 2.8% 17.2% -20. 8% -37.2% Y eda ngO nline C orp. KR W A052770 K OS E 104.0 8,670.00 -1.3% 27.9% 37.0% 21.4% -22. 2% -30.9% Y nk K orea Inc. KR W A023770 K OS E 8. 2 4,385.00 7. 3% 27.8% -0. 5% -60. 1% -72. 0% -74.3% ZipL oca l Inc. C AD T S XV :ZIP T S XV 1. 0 0.02 200.0% -25.0% 50.0% -81. 3% -92. 3% -92.9% High 200.0% 400. 0% 333. 3% 275.0% 263.0% 0.0% L ow -90. 0% -90.0% -90.0% -99. 8% -100.0% -100. 0% Average 415.0 10.6% 24.3% 12.4% -7.2% -37.4% -59.6% Media n 4. 2% 20.0% 0.0% -16. 9% -50. 2% -61.8% Figure 20. Price Performance Source. Capital IQ
    • Page 15 C omparable C ompany Analys is > Web 2.0 Valuation Multiples P rimary US D Market TE V/L TM TE V/ NTM TE V/L TM TE V/NTM C ompany Name S ector C ountry E xchange Tic ker C ap ($m) R evenue R evenue E B ITDA E B ITDA P /L TM E P S P /NTM E P S P /TangB V Accelerize New Media , Inc. Direct Ma rketing United S ta tes OT C B B AC L Z 8. 6 4.0x - - - - - - Actoz S oft C o., Ltd. G a ming S outh K orea K OS E A052790 84. 5 1.0x - 5.6x - 15. 5x - 1.6x AQ Interactive, Inc. G a ming J a pa n TSE 3838 24. 8 - - - - - - 0.4x As s ociated Media Holdings Inc. Mobile United S ta tes OT C P K AS MH 0. 1 8.0x - - - - - - B igs tring C orp. Ins ta nt Mes s a ging United S ta tes OT C B B BS GC 0. 8 29. 8x - - - - - - B etawa ve C orpora tion Media United S ta tes OT C B B B W AV 3. 8 - - - - - - 0.4x B eyond C ommerce, Inc. S ocia l Networking United S ta tes OT C B B B Y OC 53. 3 - - - - - - - B right T hings plc S ocia l Networking United K ingdom AIM AIM:B G T 3. 0 12. 0x - - - - - - B roadW ebAs ia Inc. S ocia l Networking United S ta tes OT C P K BWBA 38. 2 - - - - - - - C DC C orp. G aming Hong K ong Na s daqG S C HIN.A 123. 0 0.4x 0.4x 9.6x 7. 8x - 17.5x - C hina G a teway C orporation Mobile United S ta tes OT C B B CGWY 0. 0 0.0x - - - - - - C hines e G a mer Interna tiona l G a ming T aiwan GTS M G T S M:3083 442. 7 9.9x - 21. 1x - 26. 2x - 8.5x C ornerW orld C orpora tion C ontent United S ta tes OT C B B CWR L 6. 6 6.1x - - - - - - C yberplex Inc. Advertis ing C a na da TSX T S X:C X 38. 9 0.8x 0.6x 9.6x 6. 4x 8.2x 9. 0x 8.5x DADA S pA S ocia l Networking Italy CM C M:DA 97. 6 0.6x - 3.9x - 5.7x - - DXN Holdings B hd S ocia l Networking Ma la ys ia K LS E DXN 20. 9 0.5x - 4.0x - 4.0x - 0.4x Dibz Internationa l, Inc. S NS Apps United S ta tes OT C P K DIB Z 0. 0 - - - - - - - Digita lP os t Intera ctive, Inc. C ontent United S ta tes OT C B B DG LP 1. 5 6.0x - - - - - - Digita lT own, Inc. S ocia l Networking United S ta tes OT C B B DG T W 67. 9 - - - - - - - Dolphin Digital Media, Inc. S ocia l Networking United S ta tes OT C B B DP DM 32. 6 - - - - - - - E olith C o. Ltd. G a ming S outh K orea K OS E A041060 19. 1 1.0x - - - - - - E xtens ions , Inc. C ontent United S ta tes OT C P K E XT I 14. 2 - - - - - - - F ina ncial Media G roup, Inc. Direct Ma rketing United S ta tes OT C B B F NG P 0. 6 - - - - - - - F luid Mus ic C a na da, Inc. Media United S ta tes TSX T S X:F MN 21. 2 1.9x 1.3x - - - - 1.7x F rogs ter Intera ctive P ictures AG G a ming G ermany XT R A FR G 22. 0 4.0x - - - - - 2.0x G a ma nia Digita l E nterta inment C o., Ltd. G a ming T aiwan GTS M 6180 150. 9 1.2x - 8.0x - 19. 3x - 2.1x G a meOn C o Ltd. G a ming J a pa n TSE 3812 86. 9 0.4x - 1.7x - 9.1x - 1.2x G eoS entric Oyj Mobile F inla nd HL S E G E O 1V 25. 0 3.6x - - - - - 5.3x G ia nt Intera ctive G roup, Inc. G a ming C hina NY S E GA 1, 640. 8 - - - - 1.6x 12.0x 0.3x G igaMedia L td. G a ming T aiwan Na s daqG S G IG M 302. 0 1.2x 1.2x 4.9x 5. 0x 9.6x 8. 7x 2.7x G ravity C o. , L td G a ming S outh K orea Na s daqG M GR VY 23. 6 - - - - - - - G ree, Inc. S ocia l Networking J a pa n TSE T S E :3632 1, 275. 9 41. 6x - - - - - 20. 2x G ungHo O nline E nterta inment, Inc. Media J a pa n OS E 3765 144. 3 1.1x - 6.2x - - - - Ha nbitS oft, Inc. G a ming S outh K orea K OS E A047080 54. 9 0.7x - - - - - 1.8x IAC /InterActiveC orp. Media United S ta tes Na s daqG S IAC I 2, 274. 9 0.4x 0.4x 8.1x 3. 1x 17. 0x 27.7x 1.1x IAS E nergy, Inc. V ideo C a na da OT C B B IAS C . A 4. 9 - - - - - - - IdeaE dge, Inc. S ocia l Networking United S ta tes OT C B B O T C B B :IDAE 14. 4 - - - - - - 10. 6x is eemedia Inc. C ontent C a na da T S XV IE E 4. 1 2. 1x - - - - - 2.4x J umbuck E nterta inment P ty Ltd. S ocia l Networking Aus tralia AS X AS X:J MB 16. 2 0.9x - 2.5x - 7.4x - 1.9x J umpT V Inc. V ideo C a na da TSX T S X:J T V 50. 4 5. 4x - - - - - 3.6x K aboos e Inc. C ontent C a na da TSX T S X: K AB 65. 4 1.1x 1.0x 11. 1x 6. 2x - - - K ings oft C o. L td. G a ming C hina S E HK 3888 455. 8 3.1x - 8.0x - 11. 9x - 2.7x L ingo Media C orporation L ea rning C a na da T S XV T S XV :L M 8. 6 2.8x - - - - - - L iveW orld Inc. S ocia l Networking United S ta tes OT C P K LV W D 4. 0 0.3x - - - - - 1.8x L ookS mart, Ltd. Direct Ma rketing United S ta tes Na s daqG M LO O K 20. 5 - - - - - - 0.7x Ma gnitude Information S ys tems Inc. S ocia l Networking United S ta tes OT C B B MAG Y 6. 5 - - - - - - - Mixi, Inc. S ocia l Networking J a pa n TSE 2121 592. 9 4.2x - 11. 1x - 29. 2x - 4.7x Modern T imes G roup Mtg AB Media S weden OM MT G B 1, 236. 3 1.1x 1.0x 6.6x 7. 9x 3.5x 7. 9x - Moggle, Inc G a ming United S ta tes OT C B B MMO G 83. 5 - - - - - - - MO K O .mobi L imited S ocia l Networking Aus tralia AS X MK B 5. 9 4.7x - - - - - 5.1x NE O W IZ G ames C orpora tion G a ming S outh K orea K OS E A095660 368. 7 2.6x - 9.7x - 19. 7x - 11. 6x NetDra gon W ebS oft, Inc. G a ming C hina S E HK 777 293. 3 1.7x - 3.7x - 9.7x - 1.6x Netea s e.com Inc. G a ming C hina Na s daqG S NT E S 3, 519. 3 - - - - 2.3x 14.8x 0.7x NeXplore C orpora tion C ontent United S ta tes OT C P K NXP C 41. 8 - - - - - - - Ngi G roup Inc. Media J a pa n TSE 2497 28. 5 - - - - 8.5x - 0.5x Northgate T echnologies L imited Direct Ma rketing India BSE 590057 28. 6 0.2x - 1.2x - 1.9x - - O pen T ext C orp. C olla boration C a na da Na s daqG S OT E X 1, 745. 9 2.4x 2.2x 9.6x 8. 4x 35. 7x 13.8x - O penwa ve S ys tems Inc. Mobile United S ta tes Na s daqG S OP W V 103. 3 0.1x 0.1x - 1. 7x - 41.3x 1.4x P erfect W orld C o., L td. G a ming C hina Na s daqG S PWR D 852. 0 - - - - 1.5x 7. 9x 0.5x P hotoC ha nnel Networks Inc. Digita l Imaging C a na da T S XV T S XV : P N 43. 2 2.6x 1.8x - 5. 5x - 20.7x 9.8x Q uepa s a C orp. S ocia l Networking United S ta tes Na s daqC M QP S A 12. 6 - - - - - - 9.4x O AO R B C Information S ys tems Media R us s ia R TS R BCI 55. 5 0.0x - 0.1x - - - - S ha nda Intera ctive E ntertainment L td. G a ming C hina Na s daqG S S NDA 2, 963. 3 0.0x 0.2x 0.1x 0. 6x 2.5x 14.5x 1.1x S hutterfly, Inc. Digita l Imaging United S tates Na s daqG S S FLY 245. 2 0.7x 0.8x 5.5x 5. 0x 55. 1x - 1.4x S K C ommunica tions C o. , L td. S earch S outh K orea K OS E A066270 264. 8 1.7x - 17. 7x - - - - S NAP Intera ctive, Inc. Dating United S ta tes OT C B B STVI 8. 1 3.1x - 30. 2x - 44. 3x - 5.9x S NM G loba l Holdings Media United S ta tes OT C P K S NMN 0. 0 1.1x - - - - - - S ocia l Media V enures , Inc. S ocia l Networking United S ta tes OT C P K S MV I 0. 0 0.0x - - - - - - S ohu.com Inc. G a ming C hina Na s daqG S S O HU 1, 762. 1 3.4x 2.9x 8.0x 6. 7x 11. 4x 11.3x 5.4x S ites earch C orporation S ocia l Networking United S ta tes OT C B B S TPC 28. 2 - - - - - - 40. 1x S pa rk Networks , Inc. S ocia l Networking United S ta tes AME X LO V 46. 2 0.8x - 3.8x - 11. 1x - - S pectrumDNA, Inc. Media United S ta tes OT C B B S P XA 7. 3 - - - - - - 7.8x T encent Holdings L td. P ortal C hina S E HK 700 13, 995. 5 14. 5x - 29. 2x - 39. 8x - 16. 3x T he P a rent C ompany Media United S ta tes OT C P K K IDS . Q 0. 5 0.2x - - - - - - T he9 Limited G a ming C hina Na s daqG S NC T Y 379. 5 - - - - 1.1x 9. 4x 0.1x T heS treet.com, Inc. Media United S ta tes Na s daqG M TS CM 60. 7 - - - - 64. 1x - 0.6x T ota l S port O nline AS Media Norwa y O T C NO T OS O 0. 2 4.6x - - - - - - T ree. C om, Inc. P ortal United S ta tes Na s daqG M TR E E 51. 1 0.2x 0.2x - - - - 0.7x U nis erve C ommunica tions C orp. S ocia l Networking C a na da T S XV T S XV : US S 0. 8 0.1x - 29. 5x - - - - U nited Online Inc. Media United S ta tes Na s daqG S UNT D 416. 5 1.1x 0.7x 4.7x 3. 0x - 7. 0x - U O MO Media , Inc Media C a na da OT C B B U OMO 6. 9 11. 3x - - - - - - V alueC lick Inc. Advertis ing United S ta tes Na s daqG S V C LK 798. 1 1.1x 1.2x 5.9x 5. 1x - 15.5x 7.7x V OIS , Inc. S ocia l Networking United S ta tes OT C B B V O IS 1. 9 - - - - - - 4.3x W ebzen Inc. G a ming S outh K orea Na s daqG M W ZE N 26. 7 - - - - - - 0.0x W izza rd S oftwa re C orporation P odcas ting United S ta tes AME X W ZE 21. 7 3.5x - - - - - - W oozyF ly, Inc. S ocia l Networking United S ta tes OT C B B W ZY F 2. 6 - - - - - - - W orlds .com Inc. C ontent United S ta tes OT C B B W DDD 8. 9 - - - - 3.3x - - W ynds torm C orpora tion C ontent United S ta tes OT C B B W Y ND 3. 1 - - - - - - - XING AG S ocia l Networking G ermany XT R A O 1B C 200. 7 3.1x - 9.6x - 20. 8x - 5.4x Y edangO nline C orp. G a ming S outh K orea K OS E A052770 104. 0 2.0x - 8.8x - 11. 6x - 5.4x Y nk K orea Inc. G a ming S outh K orea K OS E A023770 8. 2 0.6x - - - - - - ZipL ocal Inc. Directory C a na da T S XV T S XV :ZIP 1. 0 0.8x - - - - - - High 13, 995. 5 41. 6x 2.9x 30. 2x 8. 4x 64. 1x 41.3x 40. 1x L ow 0. 0 0.0x 0.1x 0.1x 0. 6x 1.1x 7. 0x 0.0x Average 415.0 3.6x 1.0x 9.1x 5.2x 16.0x 14.9x 4.8x Media n 28. 5 1.2x 0.9x 8.0x 5. 3x 10. 4x 12.9x 2.1x Figure 21. Valuation Comparison Source. Capital IQ
    • Page 16 C omparable C ompany Analys is > Web 2.0 S ummary by C ountry C ompany Name US D Market C ap ($m) Avg US D Market C ap ($m) US D L TM Total R ev ($m) US D L TM Total E B ITDA ($m) E B ITDA % 41 25, 861. 5 2, 873. 5 3, 742. 2 1, 659. 2 38. 0% United S tates C hina C hina United S tates C hina S weden 11 4, 511. 0 1, 236. 3 3, 348. 3 261. 6 32. 0% C anada United S tates S weden C hina S weden G erma ny 9 2, 153. 3 358. 9 1, 636. 0 239. 7 30. 8% C hina J apan J apa n S weden United S tates India 9 1, 970. 1 298. 5 940. 9 192. 7 25. 9% S outh K orea C anada T aiwan C anada C ana da F inland 6 1, 236. 3 179. 1 552. 3 128. 7 19. 4% J apan S weden C anada S outh K orea J apan J apan 3 954. 5 123. 0 488. 9 80. 7 18. 3% T aiwan S outh K orea Hong K ong J apan T aiwan C ana da 2 895. 6 111. 4 428. 1 58. 7 16. 2% Aus tralia T aiwan G ermany Hong K ong S outh K orea T aiwan 2 222. 8 110. 0 342. 5 36. 2 13. 3% G ermany G ermany United S ta tes T aiwan Italy Italy 1 123. 0 106. 1 226. 8 23. 7 9. 7% Norway Hong K ong S outh K orea Italy India Norway 1 97. 6 97. 6 142. 0 18. 8 8. 4% Hong K ong Italy Italy R us s ia Hong K ong S outh K orea 1 55. 5 55. 5 134. 6 18. 6 4. 4% F inland R us s ia R us s ia India R us s ia Hong K ong 1 28. 6 28. 6 78. 1 11. 7 2. 6% Italy India India Malays ia G erma ny C hina 1 25. 0 25. 0 52. 1 10. 4 -0. 4% United K ingdom F inland F inla nd G ermany Malays ia United S tates 1 22. 1 20. 9 13. 7 2. 6 N/A India Aus tra lia Ma lays ia Aus tra lia Aus tralia United K ingdom 1 20. 9 11. 0 5. 5 -1. 0 N/A S weden Malays ia Aus tralia F inland Norway Aus tralia 1 3. 0 3. 0 2. 0 -1. 7 N/A R us s ia United K ingdom United K ingdom Norway United K ingdom R us s ia 1 0. 2 0. 2 0. 2 -12. 7 N/A Malays ia Norway Norwa y United K ingdom F inland Malays ia 92 38,180.8 415.0 12,134.6 2,728.0 8.7% G rand Total G rand Total G rand Total G rand Total G rand Total G rand Total Figure 22. Comparison by Country Source. Capital IQ Comparable Company Analys is > Web 2.0 S ummary by E xc hange C ompany Na me US D Mar ket C a p ($m) Avg US D Mark et C ap ($m ) US D L T M T otal R ev ($m ) US D L T M Total E B I TDA ($m) E B IT DA % 22 15 ,485 . 1 4, 914. 9 1 , 636 .0 1,52 1. 6 3 8. 0% OTCB B Na sd aqG S S E HK OM Nas da qG S OM 13 14 ,744 . 6 1, 640. 8 492 .5 60 3. 5 3 6. 0% Nas da qG S S E HK NY S E Nas daqG S S E HK OS E 9 2 ,008 . 9 1, 236. 3 417 .8 26 1. 6 3 2. 0% OTCP K TS E OM S E HK OM XTRA 7 1 ,640 . 8 1, 191. 2 233 .2 14 4. 4 3 0. 8% K OS E NY S E Nas da qG S NY S E NY S E BSE 5 1 ,236 . 3 401. 8 226 .8 10 8. 8 2 7. 4% TS E OM TS E CM TSE T S XV Nas da qG M 5 K OSE 904 . 2 GTSM 296. 8 R TS 142 .0 K OS E 5 7. 9 HL S E 2 5. 9% 5 593 . 6 144. 3 134 .6 3 6. 2 1 8. 4% T S XV GTS M OSE BS E CM S E HK 4 352 . 0 129. 2 111 .6 3 4. 7 1 4. 0% TS X OTCB B K OS E OSE GTSM TS X 3 222 . 8 111. 4 84 .9 2 3. 7 1 3. 9% S E HK XTR A XT R A Nas daqG M B SE TS E 2 182 . 6 97. 6 78 .1 1 9. 9 1 3. 3% A ME X Na sd aqG M CM KL S E OSE CM 2 175 . 9 55. 5 76 .1 1 8. 6 1 2. 8% XT R A TS X RTS GTSM R TS K OSE 2 144 . 3 44. 0 75 .5 1 1. 7 9 .7% ASX OS E TS X TSE XT R A O T C NO 2 98 . 7 36. 5 70 .5 1 0. 4 7 .8% GTSM OTCP K Nas da qG M KOS E K LS E OTCP K 1 97 . 6 34. 0 32 .0 5. 8 2 .3% O T C NO CM A ME X TSX A ME X Na sdaqG S H LS E 1 A ME X 67 . 9 BSE 28. 6 AM E X 31 .7 ASX 2. 6 OTCB B 1 .8% 1 57 . 7 25. 0 26 .0 0. 1 -4 .9% NY S E T S XV HL S E XT R A TSX Na sdaqC M 1 55 . 5 20. 9 21 .0 -1. 0 -5 .3% CM R TS K LS E OTCPK O T C NO Na sdaqG M 1 28 . 6 16. 0 9 .4 -1. 7 -6 .7% BSE BSE OTCB B TSXV A IM GTS M 1 25 . 0 12. 6 6 .9 -9. 6 N/A Nas da qC M HL S E Nas da qC M AS X TSXV NY S E 1 22 . 1 11. 5 5 .5 -1 1. 4 N/A OSE AS X T S XV H LS E Nas da qC M A ME X 1 20 . 9 11. 0 2 .0 -1 2. 7 N/A A IM K LS E AS X O T C NO HLS E A IM 1 12 . 6 11. 0 1 .8 -1 8. 1 N/A OM Na sd aqC M OTCP K OT CBB Nas da qG M AS X 1 3 .0 3. 0 0 .2 -2 6. 5 N/A RTS A IM A IM AI M OTCPK RTS K LS E 1 O T C NO 0 .2 O T C NO 0. 2 Nas daqC M 0 .1 OTCBB -5 2. 4 K LS E N/A G rand Total 92 G r and T ota l 38 ,180.8 G ra nd Total 415. 0 G rand T otal 12,134 .6 G rand T otal 2,728.0 G ra nd T ota l 8 .7% Figure 23. Comparison by Exchange Source. Capital IQ
    • Page 17 Financing - Last Three Months (US$ m) PIPE Month Company Name Country Angel/Seed Debt financing Series A Series B Series C Series D Series E Grand Total USA 35.0 35.0 Feb-09 Twitter Synthasite South A frica 20.0 20.0 USA 18.0 18.0 Tremor Media 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 USA 5.6 5.6 Oodle USA 4.3 4.3 TextDigger OneSpot USA 4.2 4.2 Canada 4.0 4.0 Mixpo 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 WhistleBox USA 2.3 2.3 UK 2.0 2.0 Mendeley USA 2.0 2.0 Outright Israel 1.6 1.6 Tvinci Filtrbox USA 1.4 1.4 Netherlands 1.3 1.3 MMO Life USA 1.3 1.3 Cake Financial fav.or.it UK 0.7 0.7 Feb-09 Total 13.3 24.8 76.4 58.6 12.5 185.5 Mar-09 Vidyo USA 15.0 15.0 Buzznet USA 12.5 12.5 USA 12.0 12.0 LendingClub USA 12.0 12.0 SendMe Inc. Auditude USA 10.5 10.5 Glam Media USA 10.0 10.0 Visible Measures USA 10.0 10.0 Greystripe USA 5.5 5.5 USA 5.0 5.0 OMGP OP USA 4.1 4.1 Apture Simulmedia USA 4.0 4.0 Canada 3.9 3.9 Tynt USA 3.2 3.2 AnySource Media USA Pixazza 3.1 3.1 USA 2.0 2.0 Sports Composite DE USA 2.0 2.0 Hunch Bit.ly USA 2.0 2.0 USA 1.3 1.3 AdultSpace Netherlands 1.3 1.3 Myngle 33Across USA 0.8 0.8 Three Melons Argentina 0.6 0.6 Mar-09 Total 1.3 1.3 0.6 32.3 30.3 43.0 12.0 10.0 130.7 USA Socialtext 4.5 4.5 Apr-09 USA TubeMogul 3.0 3.0 Apr-09 Total 3.0 4.5 7.5 Figure 24. Financing, Last Three Months Source. Company reports
    • Page 18 C ompany Des c riptions - C urrent Mo nth C apital Market A c tivity Company HQ W ebs ite Des criptio n S oc ialtext Inc orporated U nited S tates www. s ocialtext.c om S oci a ltext Inc orpora ted develops enterpris e s oc ial s oftware. T he compa ny focus es on offering c ollaboration pla tform that allows organizations to c ollaborate. It offers P eople, whic h enables users to integrate s oc ial network ing with enterprise collaboration; W eblog that supports c ollabora tive and ongoing conversations among c ollea gues ; W orks pac e, an enterpris e wiki for sea rc hing information and people; and S ig nals that amplifies, clarifies, and c omplements other c ollaboration ac tivities , as well as provides a medium for informa tion s haring. The c ompany als o provides D ashboa rd, which a ggregates content from S oc ia ltex t wik i pages , the W eb, and enterprise sy stems; an d S oci a lCa lc s preadsheets that inc lude information from other spreads heets or works pa ce pages . The compa ny was founded in 2002 and is ba sed in P a lo Alto, C alifornia. T ubeMogul, Inc . U nited S tates www. tubemogul. c om TubeM ogul, I nc. operates as an online v ideo a nalytics and dis tribution c ompany worldwide. It foc uses on providing video publis hing tools . The c ompany provides a single point for deploy ing uploads to the video s haring s ites , and analytics on who, wha t, a nd how videos are being viewed. It serves content produc ers, media companies , ad age ncies , digita l c onsultants, rec ord labe ls, film s tudios , politicians , c onsumer products orga niz ations , and corporations. The company wa s founded in 2006 and is based in B erkeley , California. Figure 25. Company Descriptions Source. Company reports, Capital IQ, Crunchbase 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. Information about Research Capital Corporation’s Rating System, the distribution of our research to clients and the percentage of recommendations which are in each of our rating categories is available on our web site at www.researchcapital.com. The information contained in this report has been drawn from sources believed to be reliable but its accuracy or completeness is not guaranteed, nor in providing it does Research Capital Corporation assume any responsibility or liability. Research Capital Corporation, its directors, officers and other employees may, from time to time, have positions in the securities mentioned herein. Contents of this report cannot be reproduced in whole or in part without the expressed permission of Research Capital Corporation. (U.S. Institutional Clients — Research Capital U.S.A. Inc. (a wholly owned subsidiary of Research Capital Corporation) accepts responsibility for the contents of this report subject to the terms & limitations set out above. Firms or institutions receiving this report should effect transactions in securities discussed in the report through Research Capital U.S.A. Inc., a Broker-Dealer Registered with the United States Securities and Exchange Commission). Tor ont o 41 6. 860 .7 60 0 M ontr eal 5 14. 39 9. 15 00 V a nc ouve r 6 04.6 6 2.1 80 0 Ca lgar y 4 0 3. 2 65 .7 40 0 Re gi na 30 6.5 66. 75 50 www.researchcapital.com