10 04-27 web 2.0 weekly
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10 04-27 web 2.0 weekly

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April on track to be record month?: Total transaction value in the Web 2.0 universe April-to-date is $726.1 million. The number of financings stands at 40 averaging $18.2 million each. Note that this ...

April on track to be record month?: Total transaction value in the Web 2.0 universe April-to-date is $726.1 million. The number of financings stands at 40 averaging $18.2 million each. Note that this includes the $300 million investment in DST by Tencent. Even excluding this transaction, the average is $15.2 million. In comparison, total capital raised in March was $168.1 million, averaging $5.4 million over 31 deals. The highest monthly total in our Web 2.0 financing database was April 2008 with a total of $765.5 million raised in 47 transactions.





Deal round-up for April: The large deal highlights for the month include:

§

•Tencent invested $300mm in DST (investor in Facebook, Zynga, Groupon).
DST invested $135mm in social-shopping service Groupon.
Salesforce.com acquired crowd-sourced personal contact service, Jigsaw, for $142 mm.
•Warner Bros. acquired gaming company, Turbine, for $160 mm.
•Ankeena Networks, media infrastructure solution provider was acquired by Juniper for $100mm.
Bullish week for Web 2.0: Sixty-nine percent of the companies in our universe had increased or flat market caps over the past week, sixty-nine percent had increased EV/Revenue multiples, 75% had increased or flat EV/EBITDA multiples and 73% had increased or flat P/E mutliples .

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    10 04-27 web 2.0 weekly 10 04-27 web 2.0 weekly Presentation Transcript

    • Web 2.0 Weekly “Financing on pace for record month” April 27, 2010 David Shore, CFA, MBA 416.860.6784 dshore@mackieresearch.com Damian Wojcichowsky, CFA 416.860.7652 This report has been created by Analysts that are employed by Mackie Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report. www.mackieresearch.com Copyright © 2000-2010, Mackie Research Capital Corporation, All rights reserved www.mackieresearch.com
    • Key Developments (past week) Deals (M&A, Finance) Salesforce.com acquired crowd-sourced personal contact service, Jigsaw, for $142 mm. Warner Bros. acquired gaming company, Turbine, for $160 mm. Diapers.com, internet retailer, received $20 mm in funding (lifetime financing total = $59 mm). Financial Results/Guidance Points International Ltd. (TSX:PTS) revised 2010 revenue guidance. The company expects 2010 revenue in the range of $85-$95 mm (following on a prior guidance increase from $60-$70 mm to $75-$85 mm). CDC Corp. (NasdaqGS:CHIN.A) announced preliminary Q1/10 application sales to increase by approximately 14% to $8.2 mm from $7.2 mm in Q1/09. Total Non-GAAP recurring revenue (which CDC defines as Non-GAAP maintenance plus SaaS revenue) is expected to increase by ~13% to $27.4 mm in Q1/10 from $24.2 mm in Q1/09. First quarter 2010 license revenue is expected to be $7.9 mm, and Total Contract Value for new SaaS contracts secured in the quarter is expected to be about $300,000. 2 www.mackieresearch.com
    • Key Developments cont. Financial Results cont. Fiscal Period Company (ended) Revenue (current/prior year) Y/Y % EPS (current/prior year) Y/Y % Modern Times Group Mtg AB (OM:MTG B) Q1/10 (Mar. 2010) SEK 3,524mm (SEK 3,336mm) 5.6% SEK 4.60 (SEK 2.19) 110.0% Multiplied Media Corporation (TSXV:MMC) F2009 (Dec. 2009) $288,537 ($69,768) 313.6% ($0.04) (loss $0.011) NM The New York Times Company (NYSE:NYT) Q1/10 (Mar. 2010) $587.9mm ($607.1mm) -3.2% $0.08 (loss $0.52) NM Frogster Interactive Pictures AG (XTRA:FRG) F2009 (Dec. 2009) €14.7mm NA €0.96 per share NA Sohu.com Inc. (NasdaqGS:SOHU) Q1/10 (Mar. 2010) $129.5mm ($115.6mm) 12.0% $0.73 NA Changyou.com Limited (NasdaqGS:CYOU) Q1/10 (Mar. 2010) $72.0mm ($61.6mm) 16.9% $0.80 per ADS ($0.72 per ADS) 11.1% 3 www.mackieresearch.com
    • Public Company Data 4 www.mackieresearch.com
    • Aggregate Public Data Web 2.0 Public Companies Total Median Max Min # Companies 99 - - - Market Cap (US$ mm) 86,002.5 80.2 38,752.5 1.7 Revenue (US$ mm) 22,695.3 60.4 3,257.4 0.0 1 Year revenue growth 4.8% 1178.9% -91.4% EBITDA as % of revenue - 11.4% 67.7% -91.9% Net cash (US$ mm) 8,270.2 1.2 1,754.9 -732.7 TEV/Revenue - 2.0x 45.2x 0.1x TEV/EBITDA - 9.6x 46.2x 0.1x P/E - 14.8x 76.6x 0.0x Relative to 52 week high -29.5% 5.6% -98.1% Source: CapitalIQ 5 www.mackieresearch.com
    • 6 0 5 10 15 20 25 30 Gaming 27 Social Networking 16 Media 10 7 Diversified 6 Marketing 5 Mobile Source: CapitalIQ 3 Infrastructure 3 SMS/Voice 3 Enterprise 3 Advertising 2 Internet Retail 2 Virtual World By Sector 2 Dating 2 Music 1 Vertical Communities 1 Collaboration 1 Podcasting 1 Learning 1 Video 1 Search 1 Payment 1 Financial Services Public Company Distribution 0 5 10 15 20 25 30 35 40 45 United States Canada China South Korea Japan Taiwan Germany Australia United Kingdom Hong Kong Poland Russia By Country Finland Sweden Malaysia India Italy Switzerland Israel www.mackieresearch.com
    • Valuation Dashboard – 1 Week Market Cap EV/Revenue Flat Flat 4% 11% Falling 31% Falling 31% Rising 58% Rising 65% EV/EBITDA P/E Flat Flat 2% 0% Falling Falling 27% 25% Rising Rising 73% 73% 7 www.mackieresearch.com
    • 8 Source: CapitalIQ Multiple (x) 0.0x 0.5x 1.0x 1.5x 2.0x 2.5x 3.0x 3.5x 4.0x 4.5x 5.0x # companies 3/9/2009 3/16/2009 3/23/2009 3/30/2009 4/6/2009 4/13/2009 4/20/2009 4/27/2009 5/4/2009 5/11/2009 5/18/2009 5/25/2009 6/1/2009 6/8/2009 6/15/2009 6/22/2009 Median EV/Revenue 6/29/2009 7/6/2009 7/13/2009 7/20/2009 7/27/2009 8/3/2009 8/10/2009 8/17/2009 8/24/2009 8/31/2009 9/7/2009 Median 9/14/2009 9/21/2009 9/28/2009 10/5/2009 10/12/2009 10/19/2009 10/26/2009 11/2/2009 11/9/2009 11/16/2009 Long-term average 11/23/2009 11/30/2009 12/7/2009 12/14/2009 12/21/2009 12/28/2009 1/4/2010 1/11/2010 1/18/2010 1/25/2010 2/1/2010 2/8/2010 recovering but 2/15/2010 below LT Average Revenue multiples 2/22/2010 3/1/2010 3/8/2010 3/15/2010 3/22/2010 3/29/2010 4/5/2010 4/12/2010 4/19/2010 4/26/2010 373838393939404039424243444545444546484949485051545558585860636363626363676867697168646969697172747776797777787779818381 www.mackieresearch.com
    • 9 Source: CapitalIQ Multiple (x) # companies 0.0x 5.0x 10.0x 15.0x 20.0x 25.0x 3/9/2009 3/16/2009 3/23/2009 3/30/2009 4/6/2009 4/13/2009 4/20/2009 4/27/2009 5/4/2009 5/11/2009 5/18/2009 5/25/2009 6/1/2009 6/8/2009 Median EV/EBITDA 6/15/2009 6/22/2009 6/29/2009 7/6/2009 7/13/2009 7/20/2009 7/27/2009 8/3/2009 8/10/2009 8/17/2009 8/24/2009 8/31/2009 9/7/2009 Median 9/14/2009 9/21/2009 9/28/2009 10/5/2009 10/12/2009 10/19/2009 10/26/2009 11/2/2009 11/9/2009 11/16/2009 11/23/2009 Long-term average 11/30/2009 12/7/2009 12/14/2009 12/21/2009 12/28/2009 1/4/2010 1/11/2010 1/18/2010 1/25/2010 2/1/2010 below LT average remain depressed 2/8/2010 2/15/2010 EV/EBITDA multiples 2/22/2010 3/1/2010 3/8/2010 3/15/2010 3/22/2010 3/29/2010 4/5/2010 4/12/2010 4/19/2010 4/26/2010 2120 2022 22 2323 2222 2424 2323 2424 26 2626 2625 2526 2628 28 2930 3334 3639 3738 3738 39 3737 3740 4139 4041 41 4041 4245 4443 4949 4850 50 5049 4846 www.mackieresearch.com
    • 10 Source: CapitalIQ Multiple (x) # companies 0.0x 5.0x 10.0x 15.0x 20.0x 25.0x 30.0x 3/9/2009 3/16/2009 3/23/2009 Median P/E 3/30/2009 4/6/2009 4/13/2009 4/20/2009 4/27/2009 5/4/2009 5/11/2009 5/18/2009 5/25/2009 6/1/2009 6/8/2009 6/15/2009 6/22/2009 6/29/2009 7/6/2009 7/13/2009 7/20/2009 7/27/2009 8/3/2009 8/10/2009 8/17/2009 8/24/2009 8/31/2009 9/7/2009 Median 9/14/2009 9/21/2009 9/28/2009 10/5/2009 10/12/2009 10/19/2009 10/26/2009 11/2/2009 11/9/2009 11/16/2009 11/23/2009 Long-term average 11/30/2009 12/7/2009 12/14/2009 12/21/2009 12/28/2009 1/4/2010 1/11/2010 1/18/2010 1/25/2010 2/1/2010 2/8/2010 below LT average 2/15/2010 P/E multiples also 2/22/2010 3/1/2010 3/8/2010 3/15/2010 3/22/2010 3/29/2010 4/5/2010 4/12/2010 4/19/2010 4/26/2010 1719 1919 18 1819 1919 2020 1918 1919 20 2021 2524 2525 2526 26 2729 3029 3031 3032 3435 36 3636 3637 3839 3737 37 3635 3632 3130 3333 3333 33 3333 3231 www.mackieresearch.com
    • 11 - 5.0 10.0 15.0 20.0 25.0 # Companies 2 Infrastructure 6 Diversified 3 SMS/Voice 7 Social Networking 2 Music 1 Vertical Communities 4 Mobile 5 Marketing 1 Learning Gaming 21 1 Podcasting 1 Collaboration EV/Revenue 1 Search 3 Advertising 1 Video 2 Internet Retail 3 Enterprise 2 Dating 9 Media 1 Financial Services 1 Virtual World - 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0 Average Valuation – by Sector # Companies 1 Search 2 Enterprise 5 Diversified 1 Mobile 6 Media 1 Collaboration 2 Internet Retail 5 Social Networking EV/EBITDA Gaming 13 1 Financial Services 3 Marketing 1 Dating 1 Advertising www.mackieresearch.com
    • 12 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0 Ngi Group Inc. Cyberplex Inc. Jumbuck Entertainment Limited RealNetworks Inc. Source: CapitalIQ Tree.Com, Inc. GameOn Co Ltd. Actoz Soft Co., Ltd. Uniserve Communications Corp. GigaMedia Ltd. Glu Mobile, Inc. Openwave Systems Inc. Northgate Technologies Limited DADA SpA Points International Ltd. Internet Group SA IAC/InterActiveCorp. AOL, Inc. 0.20.2 0.40.40.4 0.50.50.50.6 0.60.70.70.70.80.80.80.90.9 CDC Corp. United Online, Inc. CornerWorld Corporation The New York Times Company TheStreet.com, Inc. Beyond Commerce, Inc. OAO RBC Information Systems AQ Interactive, Inc. Hutchison Telecommunications Hong EV/Revenue Ranking HanbitSoft, Inc. infoGROUP, Inc. Gamania Digital Entertainment Co., Ltd. Spark Networks, Inc. YD Online Corp. ValueClick, Inc. NetDragon WebSoft, Inc. 1.0 1.0 1.0 1.0 1.2 1.2 1.2 1.3 1.3 1.3 1.4 1.4 1.5 1.6 1.6 1.7 Ynk Korea Inc. Score Media Inc. Shutterfly, Inc. 1.9 2.02.0 SNAP Interactive, Inc. PNI Digital Media Inc. Oriented Media Group Berhad XING AG Velti Plc UOMO Media, Inc Modern Times Group Mtg AB NeuLion Incorporated Webzen Inc. GungHo Online Entertainment, Inc. 2.22.22.3 2.32.32.4 2.42.6 2.72.9 Sohu.com Inc. SK Communications Co., Ltd. Myriad Group AG Open Text Corp. NEOWIZ Games Corporation Wizzard Software Corporation 3.0 3.13.23.2 3.4 3.5 iseemedia Inc. Taleo Corp. 4.34.8 NeXplore has highest Lingo Media Corporation DigitalPost Interactive, Inc. revenue multiple at 45.2x WebMediaBrands Inc 5.0 5.1 5.5 Kingsoft Corporation Limited Accelerize New Media, Inc. Changyou.com Limited 5.7 5.86.4 Unilava Corporation 6.6 Mixi, Inc. 7.8 Frogster Interactive Pictures AG 9.1 Fluid Music Canada, Inc. Gree, Inc. 10.3 TransGaming, Inc. 12.0 HUGHES Telematics, Inc. 12.0 Chinese Gamer International 13.4 15.4 GeoSentric Oyj Paid Inc. 18.1 MOKO.mobi Limited 19.5 Tencent Holdings Ltd. 23.3 Bright Things plc 30.7 SpectrumDNA, Inc. 44.1 NeXplore Corporation 45.2 www.mackieresearch.com
    • 13 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0 Cyberplex Inc. GameOn Co Ltd. Source: CapitalIQ AOL, Inc. Actoz Soft Co., Ltd. 1.9 2.0 2.7 2.7 United Online, Inc. Hutchison Telecommunications Hong Kong Holdings Ltd. ValueClick, Inc. The New York Times Company 4.7 5.1 5.7 5.7 Sohu.com Inc. Spark Networks, Inc. DADA SpA YD Online Corp. infoGROUP, Inc. EV/EBITDA Ranking Gamania Digital Entertainment Co., Ltd. 6.7 6.9 6.9 7.0 7.6 7.8 CDC Corp. XING AG NetDragon WebSoft, Inc. PNI Digital Media Inc. 8.0 8.4 8.4 8.9 Changyou.com Limited Tree.Com, Inc. Uniserve Communications Corp. 9.3 9.8 10.1 Velti Plc 11.1 Score Media Inc. Open Text Corp. NEOWIZ Games Corporation GungHo Online Entertainment, Inc. 11.9 11.9 12.0 12.3 Kingsoft Corporation Limited IAC/InterActiveCorp. 13.2 13.9 the group at 46.2x HanbitSoft, Inc. Shutterfly, Inc. 14.6 14.9 SK Communications leads Openwave Systems Inc. 15.1 Ynk Korea Inc. Modern Times Group Mtg AB 16.3 17.2 Gree, Inc. 17.5 Mixi, Inc. 21.7 Chinese Gamer International 24.7 Taleo Corp. 32.4 TheStreet.com, Inc. 35.1 Tencent Holdings Ltd. SK Communications Co., Ltd. 45.5 46.2 www.mackieresearch.com Excluding EV/EBITDA > 100x
    • 14 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 Shanda Interactive Entertainment Ltd. Source: CapitalIQ 2.0 Giant Interactive Group, Inc. 2.1 Netease.com Inc. 2.6 Jumbuck Entertainment Limited 4.4 P/E Ranking Cyberplex Inc. 5.7 GigaMedia Ltd. 6.6 YD Online Corp. 8.5 DADA SpA United Online, Inc. GameOn Co Ltd. AOL, Inc. Changyou.com Limited 10.6 11.0 11.7 12.1 12.4 ValueClick, Inc. Sohu.com Inc. Hutchison Telecommunications Hong Kong Holdings 14.3 14.8 15.4 Ltd. Kingsoft Corporation Limited The New York Times Company CDC Corp. 18.5 18.9 20.6 Velti Plc Gamania Digital Entertainment Co., Ltd. HanbitSoft has the 22.6 24.5 highest P/E at 76.6x NetDragon WebSoft, Inc. 25.7 Chinese Gamer International 32.0 Gree, Inc. NEOWIZ Games Corporation 34.5 35.3 Open Text Corp. 40.9 Mixi, Inc. Tencent Holdings Ltd. 57.7 58.9 GungHo Online Entertainment, Inc. 69.3 HanbitSoft, Inc. 76.6 www.mackieresearch.com
    • 15 Source: CapitalIQ (US$m) # companies - 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 5/4/2009 5/11/2009 5/18/2009 5/25/2009 6/1/2009 6/8/2009 6/15/2009 6/22/2009 6/29/2009 7/6/2009 7/13/2009 7/20/2009 7/27/2009 8/3/2009 8/10/2009 8/17/2009 8/24/2009 8/31/2009 9/7/2009 9/14/2009 9/21/2009 9/28/2009 10/5/2009 10/12/2009 10/19/2009 10/26/2009 11/2/2009 11/9/2009 11/16/2009 11/23/2009 11/30/2009 12/7/2009 12/14/2009 Total Market Capitalization - $80 BN 12/21/2009 12/28/2009 1/4/2010 1/11/2010 1/18/2010 1/25/2010 2/1/2010 2/8/2010 2/15/2010 2/22/2010 3/1/2010 3/8/2010 3/15/2010 3/22/2010 3/29/2010 4/5/2010 4/12/2010 4/19/2010 4/26/2010 94 95 95 94 95 95 95 95 95 95 95 95 95 95 95 95 95 95 94 95 95 95 95 95 95 95 95 95 96 96 98 98 98 98 98 98 98 98 98 98 98 98 99 99 99 99 99 99 99 99 99 99 www.mackieresearch.com
    • 16 - # Companies 5,000.0 10,000.0 15,000.0 20,000.0 25,000.0 30,000.0 35,000.0 40,000.0 45,000.0 50,000.0 7 Diversified Gaming 27 Media 10 Social Networking 16 1 Collaboration 6 Marketing 3 Enterprise 2 Internet Retail 1 Search 5 Mobile Total Market Cap – by Sector 3 SMS/Voice 1 Financial Services 2 Music 1 Video 2 Dating 2 Virtual World 3 Advertising over $17b in market cap 1 Vertical Communities 27 Gaming companies totaling 1 Payment 3 Infrastructure 1 Podcasting 1 Learning www.mackieresearch.com
    • 17 0 1,000 2,000 3,000 4,000 5,000 6,000 BroadWebAsia Inc. Mobile Data Corp. UOMO Media, Inc CornerWorld Corporation Source: CapitalIQ Uniserve Communications Corp. Beyond Commerce, Inc. En2Go International, Inc. Kiwibox.Com, Inc. DigitalPost Interactive, Inc. Worlds.com Inc. Kent International Holdings Inc. Oriented Media Group Berhad SpectrumDNA, Inc. Real Value Estates, Inc. Bright Things plc Lingo Media Corporation Sahara Media Holdings, Inc. SNAP Interactive, Inc. iseemedia Inc. MOKO.mobi Limited Jumbuck Entertainment Limited IAS Energy, Inc. VOIS, Inc. Internet Group SA Northgate Technologies Limited Wizzard Software Corporation NeXplore Corporation Accelerize New Media, Inc. LookSmart, Ltd. Dolphin Digital Media, Inc. Ynk Korea Inc. Asknet AG Market Cap Ranking Socialwise, Inc. Multiplied Media Corporation WebMediaBrands Inc Cyberplex Inc. TransGaming, Inc. Glu Mobile, Inc. Unilava Corporation DigitalTown, Inc. GeoSentric Oyj Quepasa Corp. PNI Digital Media Inc. Gravity Co., Ltd Score Media Inc. Frogster Interactive Pictures AG Spark Networks, Inc. Ngi Group Inc. Moggle, Inc NeuLion Incorporated HanbitSoft, Inc. YD Online Corp. Paid Inc. Points International Ltd. DADA SpA Fluid Music Canada, Inc. Tree.Com, Inc. AQ Interactive, Inc. GameOn Co Ltd. Actoz Soft Co., Ltd. TheStreet.com, Inc. Webzen Inc. GigaMedia Ltd. The9 Limited XING AG Myriad Group AG Velti Plc OAO RBC Information Systems Openwave Systems Inc. Gamania Digital Entertainment Co., Ltd. NetDragon WebSoft, Inc. dominates group CDC Corp. HUGHES Telematics, Inc. GungHo Online Entertainment, Inc. infoGROUP, Inc. RealNetworks Inc. Tencent’s $39 bn market cap SK Communications Co., Ltd. Shutterfly, Inc. NEOWIZ Games Corporation United Online, Inc. ValueClick, Inc. Kingsoft Corporation Limited Hutchison Telecommunications Hong Kong Holdings Chinese Gamer International Mixi, Inc. Taleo Corp. The New York Times Company Perfect World Co., Ltd. Giant Interactive Group, Inc. Changyou.com Limited Sohu.com Inc. Open Text Corp. IAC/InterActiveCorp. Gree, Inc. AOL, Inc. Shanda Interactive Entertainment Ltd. Modern Times Group Mtg AB Netease.com Inc. Tencent Holdings Ltd. www.mackieresearch.com
    • Price Performance – 1 week • Positive momentum, with 66% of stocks rising or flat over past week. Price Momentum Falling 34% Rising 53% Flat 13% 18 www.mackieresearch.com
    • Average Price Performance – 1 Week, By Sector 30.0% 28.0% 25.0% Dating shows biggest gains 20.0% 16.6% 15.0% 13.2%12.8% 10.0% 7.7% 6.3% 4.9% 5.0% 3.6% 3.5% 3.4% 2.5% 2.4% 1.3% 0.9% 0.0% -0.3% -0.8% -5.0% -1.5% -1.8% -4.3% -4.7% -6.1% -10.0% -15.0% -12.3% Internet Retail Infrastructure Networking Collaboration Virtual World Financial Payment Communities Advertising Learning Music Dating Search Enterprise Gaming Podcasting Marketing Mobile Diversified Services SMS/Voice Media Video Social Vertical # companies Source: CapitalIQ 19 www.mackieresearch.com
    • 20 -60.0% -40.0% -20.0% 0.0% 20.0% 40.0% 60.0% 80.0% BWBA NXPC SHHD BYOC SPXA Source: CapitalIQ TSXV:MMC TSXV:LM A047080 IASC.A KOSE:A069 TSX:CX PAYD UNLA LOV DB:M0C NYT CM:DA ACLZ RBCI OMEDIA TSX:FMN DGTW 777 3812 A023770 MKB A095660 NCTY 2497 KNTH IACI FRG VCLK GA KIWB GEO1V MYRN CWRL AIM:BGT ETGI RVLU TSX:SCR UOMO WDDD WSE:IGR TSXV:TNG ASX:JMB Price Performance – 1 Week O1BC PWRD CHIN.A MBYL TREE OTEX 590057 TLEO SEHK:215 SNDA IUSA A052770 GRVY 2121 XTRA:A5A RNWK 3888 GIGM SCLW WZE TSE:3632 OPWV TSXV:PN AOL SFLY UNTD 700 MTG B SOHU DPDM WEBM NTES CYOU GTSM:3083 TSX:NLN VEL QPSA IEE 6180 TSCM DGLP A052790 LOOK 3765 A066270 3838 VOIS TSX:PTS HUTC GLUU TSXV:USS STVI www.mackieresearch.com
    • 21 0% 50% 100% 150% 200% 250% 300% 0% 500% 1000% 1500% 2000% 2500% 3000% 3500% OAO RBC Information IAS Energy, Inc. Systems AQ Interactive, Beyond Source: CapitalIQ Inc. Commerce, Inc. AQ Interactive, Quepasa Corp. Inc. Uniserve Communications DigitalTown, Inc. Corp. VOIS, Inc. Glu Mobile, Inc. 6 Month 1 Month SK Uniserve Communications Communications Co., Ltd. Corp. Oriented Media VOIS, Inc. Group Berhad SNAP Internet Group Interactive, Inc. SA GungHo Online Velti Plc Entertainment, Inc. HUGHES Ngi Group Inc. Telematics, Inc. Price Performance (Top 10) 0% 1000% 2000% 3000% 4000% 5000% 6000% 7000% 0% 500% 1000% 1500% 2000% 2500% 3000% 3500% OAO RBC OAO RBC Information Information Systems Systems Quepasa Corp. DigitalTown, Inc. TransGaming, IAS Energy, Inc. Inc. Beyond VOIS, Inc. Commerce, Inc. AQ Interactive, Unilava Inc. Corporation 1 Year 3 Month Uniserve SNAP Communications Interactive, Corp. Inc. DigitalPost Ngi Group Interactive, Inc. Inc. Oriented Fluid Music Media Canada, Inc. Group Berhad AQ CDC Corp. Interactive, Inc. Shutterfly, Glu Mobile, Inc. Inc. www.mackieresearch.com
    • 22 -60.0% -50.0% -40.0% -30.0% -20.0% -10.0% 0.0% -100.0% -90.0% -80.0% -70.0% -60.0% -50.0% -40.0% -30.0% -20.0% -10.0% 0.0% Webzen Inc. DADA SpA Northgate IAS Energy, Source: CapitalIQ Technologies Inc. Limited Lingo Media HanbitSoft, Inc. Corporation Lingo Media Cyberplex Inc. Corporation Multiplied NeXplore Media Corporation Corporation 1 Week 6 Month CornerWorld SpectrumDNA, Corporation Inc. En2Go Beyond International, Commerce, Inc. Inc. UOMO Media, Sahara Media Inc Holdings, Inc. BroadWebAsia NeXplore Inc. Corporation Sahara Media BroadWebAsia Holdings, Inc. Inc. -60.0% -50.0% -40.0% -30.0% -20.0% -10.0% 0.0% Price Performance (Bottom 10) -120.0% -100.0% -80.0% -60.0% -40.0% -20.0% 0.0% Northgate Lingo Media Technologies Corporation Limited Wizzard Mobile Data Software Corp. Corporation Multiplied Media Cyberplex Inc. Corporation UOMO Media, Mobile Data Inc Corp. UOMO Media, SpectrumDNA, Inc Inc. 1 Year 1 Month CornerWorld Sahara Media Corporation Holdings, Inc. En2Go NeXplore International, Corporation Inc. Sahara Media BroadWebAsia Holdings, Inc. Inc. Beyond En2Go Commerce, International, Inc. Inc. BroadWebAsia CornerWorld Inc. Corporation www.mackieresearch.com
    • Capital Market Activity (Financing, M&A) 23 www.mackieresearch.com
    • 24 (US$m) 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 Oct-04 Dec-04 Feb-05 Apr-05 Jun-05 Aug-05 Oct-05 Dec-05 Feb-06 Apr-06 Jun-06 Aug-06 Financing Momentum Oct-06 Dec-06 Total (LTM) Feb-07 Apr-07 Jun-07 Aug-07 Oct-07 Dec-07 Feb-08 Apr-08 Jun-08 Aug-08 Average Size (LTM) Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 transactions by large DST Aug-09 Sharp rise driven Oct-09 Dec-09 Feb-10 Apr-10 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 (US$m) www.mackieresearch.com
    • Financing activity – Current Month Month Com pany Nam e Country Sector Angel/Seed Debt financing PIPE Series A Series B Series C Series D Grand Total Apr-10 Digital Sky Technologies Russia Diversified 300.0 300.0 Groupon USA Social Commerce 135.0 135.0 Vidyo USA Video 25.0 25.0 LendingClub USA Financial Services 24.5 24.5 MokaFive USA Enterprise 21.0 21.0 Diapers.com USA Internet Retail 20.0 20.0 BlackArrow USA Advertising 20.0 20.0 Xobni USA Social Netw orks 16.2 16.2 Box.net USA Collaboration 15.0 15.0 Prosper.com USA Financial Services 14.6 14.6 Knew ton USA Online Learning 12.5 12.5 Brightcove USA Video 12.0 12.0 EdgeCast CDN USA Media 10.0 10.0 Tynt Canada Infrastructure 8.0 8.0 PubMatic USA Advertising 7.5 7.5 Overtone USA Analytics 7.0 7.0 Searchandise Com m erce USA Advertising 7.0 7.0 OpenSky USA Social Commerce 6.0 6.0 Stitcher USA Media 6.0 6.0 Cram ster USA Vertical Communities 6.0 6.0 quirky USA Social Netw orks 6.0 6.0 58.com China Classified 5.8 5.8 Netw orked Insights USA Analytics 5.0 5.0 Tum blr USA Social Netw orks 5.0 5.0 TellApart USA Analytics 4.8 4.8 Wildfire USA Advertising 4.0 4.0 Daily Grom m et USA Social Commerce 3.4 3.4 gdgt USA Vertical Communities 3.2 3.2 Tw eetPhoto USA Micromedia 2.6 2.6 Assistly USA Enterprise 2.2 2.2 Wibiya Israel Blog 2.0 2.0 Spredfast USA Analytics 1.6 1.6 FreshPlanet USA Gaming 1.5 1.5 Zoom Safer USA Mobile 1.0 1.0 NearVerse USA Location-based SNS 1.0 1.0 DIYSEO USA Search 1.0 1.0 Kontagent USA Analytics 1.0 1.0 Currensee USA Financial Services 0.8 0.8 MyLikes USA Advertising 0.6 0.6 Plyce France Location-based SNS 0.4 0.4 Apr-10 Total 4.0 20.0 300.0 29.1 47.8 298.7 26.6 726.1 25 www.mackieresearch.com
    • Financing activity – Current Month, By Sector # Deals $ Raised Micromedia 2% Music 2% Classified 2% Diversified Diversified 26% Gaming Infrastructure Gaming 2% 14% 2% 7% Social Vertical Commerce Communities 7% 9% Crowdsourced Online Learning Content 2% 2% Collaboration Media 7% Social 2% Commerce 12% Analytics Video 11% 9% Internet Retail 2% Financial Enterprise Services 5% 7% Advertising Social Networks 11% 7% Other 48% 26 www.mackieresearch.com
    • Financing Activity – last three months 800.0 20.0 $426 mm ex-DST, averaging 18.2 $15.2 mm per deal 18.0 700.0 16.0 600.0 14.0 12.5 12.5 500.0 12.0 10.2 (US$m) (US$m) 400.0 8.9 9.1 10.0 8.2 8.0 300.0 6.4 5.8 5.5 5.5 5.4 6.0 4.6 200.0 4.0 100.0 2.0 0.0 0.0 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 *May-09 includes $200m FB investment Dec-09 includes $180m Zynga investment Total Average Apr-10 includes $300m DST investment 27 www.mackieresearch.com
    • 28 (US$m) 0.0 50.0 100.0 150.0 200.0 250.0 300.0 350.0 # companies 1 Diversified 8 Gaming 6 Media Video 11 Crowdsourced 5 Content Social 4 Commerce Advertising 17 8 Search Social 10 Networks Financial 8 Services 6 Mobile 3 Internet Retail 7 Analytics 2 Mobile Ad 2 Enterprise 3 Music Vertical 7 Communities Online 2 Learning Mobile 1 Payment 1 Collaboration 4 Location- based SNS 3 Virtual World Advertising has most deals in last 3 months 2 Microblog 3 Infrastructure 1 Widget 3 Travel 1 SMS/Voice 2 Blog 1 Classified Online 1 Calendar Capital Market Activity Ranking – by Sector, last three months 1 Micromedia 1 Online Dating 1 Aggregation www.mackieresearch.com
    • Top 10 Deals (2010 YTD) Financings Acquisitions 350.0 180 160 300.0 160 300.0 142 140 250.0 120 200.0 100 100 150.0 80 135.0 80 100.0 60 50 40 36.5 50.0 33 25.0 24.5 21.0 20.0 20.0 16.2 15.0 14.6 21 20 18 20 0.0 Technologies LendingClub Box.net Groupon BlackArrow Vidyo MokaFive Xobni Diapers.com Prosper.com Digital Sky 0 Turbine Jigsaw Ankeena Mochi Aardvark StudioNow Saf-T-Net C&C Red 5 Multicast Networks Media Media Studios, Media Inc. DST involved in 2 largest deals YTD 29 www.mackieresearch.com
    • Upcoming events/earnings Company Date Time Quarter Conf Call Details AOL, Inc. (NYSE:AOL) 28-Apr-10 10:00 AM (EDT) Q1/10 http://ir.aol.com CDC Corp. (NasdaqGS:CHIN.A) 28-Apr-10 9:00 AM (EDT) Q1/10 IAC/InterActiveCorp. (NasdaqGS:IACI) 28-Apr-10 11:00 a.m. EST Q1/10 http://www.iac.com/Investors Openwave Systems Inc. (NasdaqGS:OPWV) 28-Apr-10 2:00 PM (PDT) Q3/10 877-941-1427 Shutterfly, Inc. (NasdaqGS:SFLY) 28-Apr-10 2:00 PM (PDT) Q1/10 970-315-0490 Taleo Corp. (NasdaqGM:TLEO) 28-Apr-10 5:00 PM (EDT) Q1/10 www.taleo.com Open Text Corp. (NasdaqGS:OTEX) 29-Apr-10 5:00 PM (EDT) Q3/10 800-814-4860 Tree.Com, Inc. (NasdaqGM:TREE) 30-Apr-10 11:00 a.m. EST Q1/10 866-564-7440 TheStreet.com, Inc. (NasdaqGM:TSCM) 5-May-10 4:30 PM (EST) Q1/10 866-770-7129, p/w 13839355 United Online, Inc. (NasdaqGS:UNTD) 5-May-10 2:30 PM (PST) Q1/10 888-510-1783, 3384050 RealNetworks Inc. (NasdaqGS:RNWK) 6-May-10 5:00 PM (EST) Q1/10 800-857-5305 Source: CapitalIQ 30 www.mackieresearch.com
    • Public Company Listing Trading Current US$ Market Company Name Ticker Exchange Currency HQ Price Cap (mm) Employees Accelerize New Media, Inc. ACLZ OTCBB USD United States 1 17.0 NA Actoz Soft Co., Ltd. A052790 KOSE KRW South Korea 14,600 115.1 NA AOL, Inc. AOL NYSE USD United States 28 3,020.2 6,700 AQ Interactive, Inc. 3838 TSE JPY Japan 174,800 103.0 NA Asknet AG XTRA:A5A XTRA EUR Germany 4 27.1 NA Beyond Commerce, Inc. BYOC OTCBB USD United States 0 3.9 86 Bright Things plc AIM:BGT AIM GBP United Kingdom 0 6.7 9 BroadWebAsia Inc. BWBA OTCPK USD United States 0 1.7 46 CDC Corp. CHIN.A NasdaqGS USD Hong Kong 3 305.7 NA Changyou.com Limited CYOU NasdaqGS USD China 35 1,789.9 1,308 Chinese Gamer International GTSM:3083 GTSM TWD Taiwan 378 1,015.8 NA CornerWorld Corporation CWRL OTCBB USD United States 0 1.9 16 Cyberplex Inc. TSX:CX TSX CAD Canada 1 41.7 NA DADA SpA CM:DA CM EUR Italy 5 97.6 NA DigitalPost Interactive, Inc. DGLP OTCBB USD United States 0 5.2 NA DigitalTown, Inc. DGTW OTCBB USD United States 2 48.0 3 Dolphin Digital Media, Inc. DPDM OTCBB USD United States 0 20.6 NA En2Go International, Inc. ETGI OTCBB USD United States 0 4.8 NA Fluid Music Canada, Inc. TSX:FMN TSX CAD United States 2 99.2 NA Frogster Interactive Pictures AG FRG XTRA EUR Germany 20 70.5 NA Gamania Digital Entertainment Co., Ltd. 6180 GTSM TWD Taiwan 51 248.8 NA GameOn Co Ltd. 3812 TSE JPY Japan 99,900 104.7 NA GeoSentric Oyj GEO1V HLSE EUR Finland 0 48.4 NA Giant Interactive Group, Inc. GA NYSE USD China 8 1,778.3 NA GigaMedia Ltd. GIGM NasdaqGS USD Taiwan 3 167.4 751 Glu Mobile, Inc. GLUU NasdaqGM USD United States 1 45.2 NA Gravity Co., Ltd GRVY NasdaqGM USD South Korea 2 62.0 469 Gree, Inc. TSE:3632 TSE JPY Japan 5,760 2,823.1 NA GungHo Online Entertainment, Inc. 3765 OSE JPY Japan 288,000 358.1 NA HanbitSoft, Inc. A047080 KOSE KRW South Korea 4,255 83.4 NA HUGHES Telematics, Inc. HUTC OTCBB USD United States 4 322.3 276 Hutchison Telecommunications Hong Kong Holdings Ltd. SEHK:215 SEHK HKD Hong Kong 2 930.4 NA IAC/InterActiveCorp. IACI NasdaqGS USD United States 24 2,741.4 3,200 IAS Energy, Inc. IASC.A OTCPK USD Canada 0 12.0 NA infoGROUP, Inc. IUSA NasdaqGS USD United States 8 473.1 3,146 Internet Group SA WSE:IGR WSE PLN Poland 1 13.8 NA 31 www.mackieresearch.com
    • Public Company Listing cont. Trading Current US$ Market Company Name Ticker Exchange Currency HQ Price Cap (mm) Employees iseemedia Inc. IEE TSXV CAD Canada 0.13 8.9 79 Jumbuck Entertainment Limited ASX:JMB ASX AUD Australia 0.25 11.2 NA Kent International Holdings Inc. KNTH OTCPK USD United States 1.80 6.4 NA Kingsoft Corporation Limited 3888 SEHK HKD China 6.24 891.7 NA Kiwibox.Com, Inc. KIWB OTCBB USD United States 0.01 4.9 NA Lingo Media Corporation TSXV:LM TSXV CAD Canada 0.57 7.0 65 LookSmart, Ltd. LOOK NasdaqGM USD United States 1.20 20.6 NA Mixi, Inc. 2121 TSE JPY Japan 620,000.00 1,038.8 NA Mobile Data Corp. MBYL OTCBB USD United States 0.07 1.7 NA Modern Times Group Mtg AB MTG B OM SEK Sweden 450.60 4,129.8 2 Moggle, Inc DB:M0C DB EUR United States 1.20 75.5 NA MOKO.mobi Limited MKB ASX AUD Australia 0.10 10.4 NA Multiplied Media Corporation TSXV:MMC TSXV CAD Canada 0.17 36.9 405 Myriad Group AG MYRN SWX CHF Switzerland 4.20 191.7 NA NEOWIZ Games Corporation A095660 KOSE KRW South Korea 38,450.00 725.3 2,901 NetDragon WebSoft, Inc. 777 SEHK HKD China 4.26 290.1 NA Netease.com Inc. NTES NasdaqGS USD China 37.40 4,844.1 224 NeuLion Incorporated TSX:NLN TSX CAD Canada 0.70 80.2 NA NeXplore Corporation NXPC OTCPK USD United States 0.30 16.7 NA Ngi Group Inc. 2497 TSE JPY Japan 53,700.00 72.1 160 Northgate Technologies Limited 590057 BSE INR India 18.80 14.7 2,523 OAO RBC Information Systems RBCI MICEX RUB Russia 44.40 205.5 3,700 Open Text Corp. OTEX NasdaqGS USD Canada 47.74 2,695.5 590 Openwave Systems Inc. OPWV NasdaqGS USD United States 2.80 234.6 NA Oriented Media Group Berhad OMEDIA KLSE MYR Malaysia 0.16 6.5 20 Paid Inc. PAYD OTCBB USD United States 0.32 86.1 NA Perfect World Co., Ltd. PWRD NasdaqGS USD China 35.00 1,743.9 NA PNI Digital Media Inc. TSXV:PN TSXV CAD Canada 1.80 59.6 NA Points International Ltd. TSX:PTS TSX CAD Canada 0.61 89.7 71 Quepasa Corp. QPSA OTCBB USD United States 4.49 58.2 NA Real Value Estates, Inc. RVLU OTCBB USD Israel 1.03 6.6 1,754 RealNetworks Inc. RNWK NasdaqGS USD United States 4.52 610.8 NA Sahara Media Holdings, Inc. SHHD OTCBB USD United States 0.25 7.8 220 Score Media Inc. TSX:SCR TSX CAD Canada 0.80 63.8 NA Shanda Interactive Entertainment Ltd. SNDA NasdaqGS USD China 44.97 3,024.5 519 Shutterfly, Inc. SFLY NasdaqGS USD United States 24.89 666.7 NA 32 www.mackieresearch.com
    • Public Company Listing cont. Trading Current US$ Market Company Name Ticker Exchange Currency HQ Price Cap (mm) Employees SK Communications Co., Ltd. A066270 KOSE KRW South Korea 16,500.00 618.3 NA SNAP Interactive, Inc. STVI OTCBB USD United States 0.25 8.2 NA Socialwise, Inc. SCLW OTCBB USD United States 0.60 29.1 3,997 Sohu.com Inc. SOHU NasdaqGS USD China 52.77 1,993.0 155 Spark Networks, Inc. LOV AMEX USD United States 3.48 71.6 NA SpectrumDNA, Inc. SPXA OTCBB USD United States 0.10 6.5 916 Taleo Corp. TLEO NasdaqGM USD United States 27.41 1,087.0 7,515 Tencent Holdings Ltd. 700 SEHK HKD China 164.40 38,752.5 7,665 The New York Times Company NYT NYSE USD United States 11.28 1,641.8 NA The9 Limited NCTY NasdaqGS USD China 6.78 173.0 NA TheStreet.com, Inc. TSCM NasdaqGM USD United States 3.95 124.6 28 TransGaming, Inc. TSXV:TNG TSXV CAD Canada 0.75 42.0 700 Tree.Com, Inc. TREE NasdaqGM USD United States 9.22 101.5 39 Unilava Corporation UNLA OTCBB USD United States 0.47 47.0 NA Uniserve Communications Corp. TSXV:USS TSXV CAD Canada 0.15 3.5 1,699 United Online, Inc. UNTD NasdaqGS USD United States 8.56 740.8 NA UOMO Media, Inc UOMO OTCBB USD Canada 0.02 1.7 1,086 ValueClick, Inc. VCLK NasdaqGS USD United States 10.07 818.9 450 Velti Plc VEL AIM GBP United Kingdom 3.36 192.8 2 VOIS, Inc. VOIS OTCBB USD United States 0.01 13.0 NA WebMediaBrands Inc WEBM NasdaqGS USD United States 1.06 39.7 NA Webzen Inc. KOSE:A069080 KOSE KRW South Korea 12,050.00 127.7 NA Wizzard Software Corporation WZE AMEX USD United States 0.25 16.5 NA Worlds.com Inc. WDDD OTCBB USD United States 0.10 5.4 NA XING AG O1BC XTRA EUR Germany 27.40 191.6 NA YD Online Corp. A052770 KOSE KRW South Korea 6,380.00 85.6 NA Ynk Korea Inc. A023770 KOSE KRW South Korea 3,195.00 22.8 - 33 www.mackieresearch.com
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