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    10 05-18 web 2.0 weekly 10 05-18 web 2.0 weekly Presentation Transcript

    • Web 2.0 Weekly “What Recession? Online Luxury Heats Up” May 18, 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) – Online Luxury – Hot Sector in a Poorer World  Booyah (virtual world operator) raised $20 mm in Series C financing.  Social media brand and charity promoter, SocialVibe, raised an $11.7 mm financing round.  Activity in the online luxury retail space headed up this week with Brandsclub (Brazilian luxury flash retailer) in a $17 mm funding and Gilt Groupe raising $35 mm. Financial Results/Guidance  Fluid Music (TSX:FMN, digital music distributor) reported Q1/F10 revenue of $15.9 mm (vs. $1.3 mm in the same period last year) and EPS of ($0.06) vs. ($0.03) in Q1/F09.  Points International (TSX:PTS, rewards program manager) reported strong revenue growth – up 11% Y/Y to $23.5 mm, and break-even EPS. Excluding contribution last year from a discontinued relationship with a major customer (Delta Airlines), revenue growth was 205% Y/Y. 2 www.mackieresearch.com
    • Public Company Data 3 www.mackieresearch.com
    • Aggregate Public Data Web 2.0 Public Companies Total Median Max Min # Companies 100 - - - Market Cap (US$ mm) 82,162.9 67.9 36,142.4 1.2 Revenue (US$ mm) 23,048.3 59.8 3,057.7 0.0 1 Year revenue growth 5.3% 857.0% -91.4% EBITDA as % of revenue - 13.4% 67.7% -75.0% Net cash (US$ mm) 9,044.1 2.1 1,827.7 -670.8 TEV/Revenue - 1.9x 41.8x 0.1x TEV/EBITDA - 8.4x 36.6x 0.8x P/E - 16.0x 83.4x 0.0x Relative to 52 week high -37.8% 0.0% -97.6% Source: CapitalIQ 4 www.mackieresearch.com
    • 5 0 5 10 15 20 25 30 Gaming 27 Social Networking 17 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 Financial Services 1 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 3% 5% Rising 29% Falling 59% Rising 36% Falling 68% EV/EBITDA P/E Flat Flat 2% Rising 0% 21% Rising 34% Falling 66% Falling 77% 6 www.mackieresearch.com
    • 7 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 3/30/2009 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 Median EV/Revenue 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 Median 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 Long-term average 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 2/15/2010 2/22/2010 down second 3/1/2010 3/8/2010 consecutive week Revenue multiples 3/15/2010 3/22/2010 3/29/2010 4/5/2010 4/12/2010 4/19/2010 4/26/2010 5/3/2010 5/10/2010 5/17/2010 373638383939393841414344444545454648494949485154545859596264646562626467687069726968677072707574757879787977788080848181 www.mackieresearch.com
    • 8 Source: CapitalIQ Multiple (x ) # companies 0. 0x 5. 0x 10. 0x 15. 0x 20. 0x 25. 0x 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 Median EV/EBITDA 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 Median 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 Long-term average 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 below LT average 3/1/2010 remain depressed 3/8/2010 EV/EBITDA multiples 3/15/2010 3/22/2010 3/29/2010 4/5/2010 4/12/2010 4/19/2010 4/26/2010 5/3/2010 5/10/2010 5/17/2010 20 20 21 22 23 23 22 22 23 24 23 23 23 24 26 26 26 26 26 25 26 26 28 32 29 32 34 36 37 41 39 39 37 39 40 40 38 38 41 42 41 42 42 42 42 44 43 45 43 44 49 50 49 51 52 52 50 51 49 48 www.mackieresearch.com
    • 9 Source: CapitalIQ Multiple (x ) # companies 0. 0x 5. 0x 10. 0x 15. 0x 20. 0x 25. 0x 30. 0x 3/30/2009 4/6/2009 4/13/2009 Median P/E 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 9/14/2009 9/21/2009 9/28/2009 Median 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 Long-term average 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 below LT average P/E multiples also 3/15/2010 3/22/2010 3/29/2010 4/5/2010 4/12/2010 4/19/2010 4/26/2010 5/3/2010 5/10/2010 5/17/2010 19 20 19 18 18 19 19 19 19 20 20 18 18 19 19 20 21 24 24 25 25 25 26 28 26 30 31 32 30 32 32 33 34 36 37 37 37 37 38 39 40 38 38 38 38 36 37 33 32 31 34 34 34 34 34 34 34 34 32 36 www.mackieresearch.com
    • 10 - 5.0 10.0 15.0 20.0 25.0 # Companies 2 Infrastructure 2 Music 1 Learning 8 Social Networking 4 Mobile 1 Vertical Communities 5 Diversified 6 Marketing 3 SMS/Voice Gaming 20 1 Search 1 Podcasting EV/Revenue 1 Collaboration 9 Media 3 Advertising 2 Internet Retail 3 Enterprise 1 Video 2 Dating 1 Financial Services 0 Virtual World - 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 Average Valuation – by Sector # Companies 2 Enterprise 1 Mobile 5 Diversified 6 Social Networking 2 Internet Retail 1 Collaboration Gaming 13 EV/EBITDA 6 Media 3 Marketing 1 Dating 1 Advertising www.mackieresearch.com
    • 11 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 Look S mart, Ltd. C y berplex Inc. Actoz S oft C o. , Ltd. G ameO n C o Ltd. Source: CapitalIQ J umbuck E ntertainment Limited R ealNetwork s Inc. G igaMedia Ltd. T ree. C om, Inc. O penwave S y s tems Inc. DADA S pA G lu Mobile, Inc. Northgate T echnologies Limited P oints International Ltd. Unis erve C ommunications C orp. C DC C orp. AQ Interactive, Inc. Internet G roup S A AO L, Inc. 0.2 0.20.30.30.40.40.4 0.4 0.50.60.60.6 0.70.70.70.70.80.80.8 IAC /InterActiveC orp. U nited O nline, Inc . T he New Y ork T imes C ompany C ornerWorld C orporation T heS treet.com, Inc. O AO R B C Information S y s tems HanbitS oft, Inc. NetDragon WebS oft, Inc. EV/Revenue Ranking infoG R O U P , Inc. Hutchis on T elecommunications H ong S park Network s , Inc. O riented Media G roup B erhad G amania Digital E ntertainment C o. , Ltd. S NAP Interactive, Inc. Y D O nline C orp. 0.80.8 1.0 1.0 1.0 1.2 1.2 1.3 1.3 1.4 1.4 1.4 1.4 1.5 1.5 Y nk K orea Inc. NeuLion Incorporated S hutterfly , Inc. V alueC lick , Inc. S core Media Inc. P NI Digital Media Inc. Modern T imes G roup Mtg AB 1.6 1.8 1.8 1.9 2.12.1 G ungHo O nline E ntertainment, Inc. XING AG 2.22.22.2 S ohu.com Inc. U O MO Media, Inc is eemedia Inc. Webz en Inc. O pen T ex t C orp. Wiz z ard S oftware C orporation My riad G roup AG NE O WIZ G ames C orporation V elti P lc F rogs ter Interactive P ictures AG 2.72.82.8 2.93.03.0 3.1 3.13.13.4 S K C ommunications C o. , Ltd. T aleo C orp. 3.74.4 C hangy ou. com Limited DigitalP os t Interactive, Inc. revenue multiple at 41.8x SpectrumDNA has highest Mix i, Inc. K ings oft C orporation Limited WebMediaB rands Inc H U G H E S T elematic s , Inc . 4.54.6 4.74.74.9 U nilava C orporation Acceleriz e New Media, Inc. 5.5 5.6 5.8 Lingo Media C orporation 8.0 G ree, Inc. Dena C o. Ltd. 8.9 9.2 T rans G aming, Inc. F luid Mus ic C anada, Inc. 10.4 C hines e G amer International 12.2 B ey ond C ommerce, Inc. 13.8 G eoS entric O y j MO K O . mobi Limited 15.415.5 T encent Holdings Ltd. 19.0 P aid Inc. 19.7 B right T hings plc 31.4 S pectrumDNA, Inc. 41.8 www.mackieresearch.com
    • 12 0. 0 5. 0 10. 0 15. 0 20. 0 25. 0 30. 0 35. 0 40. 0 G ameO n C o L td. Ac toz S oft C o. , Ltd. 1. 3 1. 6 Source: CapitalIQ C y berplex Inc. AO L , Inc . 2.4 2. 4 United O nline, Inc. 4. 2 T he New Y ork T imes C ompany S ohu. c om Inc. Hutchis on T elec ommunications H ong K ong Holdings Ltd. DADA S pA 5. 2 5. 3 5. 4 5. 8 NetDragon WebS oft, Inc. C DC C orp. S park Network s , Inc. V alueC lick , Inc. EV/EBITDA Ranking Y D O nline C orp. infoG R O UP , Inc. C hangy ou. com L imited 6.4 6. 5 6. 6 6. 6 6. 7 6. 7 7. 0 Unis erve C ommunic ations C orp. XING AG G amania Digital E ntertainment C o. , L td. P NI Digital Media Inc. 7.4 8. 1 8. 2 8. 4 G ungHo O nline E ntertainment, Inc. 8. 8 IAC /InterAc tiveC orp. O pen T ex t C orp. 10. 1 10. 5 K ings oft C orporation L imited 11. 1 NE O WIZ G ames C orporation S c ore Media Inc. 11. 5 12.0 at 36.6x S hutterfly , Inc . HanbitS oft, Inc . G ree, Inc. 13. 2 13. 3 14. 0 Tencent leads the group Y nk K orea Inc . 14. 2 Mix i, Inc. V elti P lc Modern T imes G roup Mtg AB 15. 2 15. 2 15.4 O penwave S y s tems Inc . T heS treet. c om, Inc. 17. 0 17. 4 F rogs ter Interactive P ic tures AG 19. 5 Dena C o. L td. 20. 6 C hines e G amer International 23. 8 T aleo C orp. 27. 9 T encent H oldings L td. 36.6 www.mackieresearch.com Excluding EV/EBITDA > 100x
    • 13 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 Unis erve C ommunic ations C orp. Source: CapitalIQ 5. 5 C y berplex Inc. 6.4 DADA S pA 7. 9 Y D O nline C orp. 8. 1 P/E Ranking C hangy ou. com Limited G ameO n C o L td. United O nline, Inc. AO L , Inc. 10. 1 10. 2 10. 3 12. 3 S ohu.c om Inc. V alueC lick , Inc. T he New Y ork T imes C ompany 14.3 15. 4 15.5 K ings oft C orporation Limited Hutc his on T elecommunications Hong K ong Holdings 16. 4 16. 5 L td. F rogs ter Interactive P ictures AG NetDragon WebS oft, Inc. 22. 4 22. 9 G ree, Inc. 27.7 G amania Digital E ntertainment C o. , L td. V elti P lc C hines e G amer International 30. 8 30. 9 31. 3 NE O WIZ G ames C orporation Shutterfly has the 33. 8 highest P/E at 83.4x Mix i, Inc. 42.5 O pen T ex t C orp. infoG R O UP , Inc . Dena C o. L td. 45. 9 47. 2 47. 5 T enc ent Holdings L td. 48. 4 C DC C orp. 54.0 HanbitS oft, Inc. 70. 9 Ac toz S oft C o. , Ltd. 77. 9 S hutterfly , Inc. 83. 4 www.mackieresearch.com
    • 14 Source: CapitalIQ (U S $m) # companies - 10, 000 20, 000 30, 000 40, 000 50, 000 60, 000 70, 000 80, 000 90, 000 100, 000 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 12/21/2009 12/28/2009 1/4/2010 Total Market Capitalization - $80 BN 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 100 3/15/2010 3/22/2010 95 96 96 96 96 96 96 96 96 96 96 96 96 96 96 95 96 96 96 96 97 97 97 97 97 98 98 99 99 99 99 99 99 99 99 99 99 99 99100100 100100 3/29/2010 4/5/2010 100100 4/12/2010 4/19/2010 4/26/2010 100 5/3/2010 5/10/2010 100100 100100 5/17/2010 100 www.mackieresearch.com
    • 15 - # 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 7 Diversified Gaming 27 Media 10 Social Networking 17 1 Collaboration 6 Marketing 3 Enterprise 1 Search 2 Internet Retail 5 Mobile Total Market Cap – by Sector 3 SMS/Voice 2 Music 1 Financial Services 2 Dating 3 2 Advertising Virtual World 1 Video over $15 bn in market cap 1 Vertical Communities 27 Gaming companies totaling 1 Payment 3 Infrastructure 1 Podcasting 1 Learning www.mackieresearch.com
    • 16 1,000 2,000 3,000 4,000 5,000 6,000 0 Mobile Data Corp. BroadWebAsia Inc. CornerWorld Corporation UOMO Media, Inc Source: CapitalIQ Uniserve Communications Corp. Oriented Media Group Berhad Beyond Commerce, Inc. DigitalPost Interactive, Inc. Worlds.com Inc. En2Go International, Inc. Kiwibox.Com, Inc. Sahara Media Holdings, Inc. SpectrumDNA, Inc. SNAP Interactive, Inc. Bright Things plc Kent International Holdings Inc. Real Value Estates, Inc. iseemedia Inc. VOIS, Inc. Lingo Media Corporation MOKO.mobi Limited Internet Group SA Jumbuck Entertainment Limited IAS Energy, Inc. Northgate Technologies Limited Wizzard Software Corporation Accelerize New Media, Inc. Dolphin Digital Media, Inc. Ynk Korea Inc. Asknet AG NeXplore Corporation Socialwise, Inc. Market Cap Ranking LookSmart, Ltd. Multiplied Media Corporation WebMediaBrands Inc TransGaming, Inc. Unilava Corporation Glu Mobile, Inc. GeoSentric Oyj Cyberplex Inc. DigitalTown, Inc. Gravity Co., Ltd Ngi Group Inc. PNI Digital Media Inc. NeuLion Incorporated Moggle, Inc Frogster Interactive Pictures AG Score Media Inc. Quepasa Corp. DADA SpA Spark Networks, Inc. AQ Interactive, Inc. HanbitSoft, Inc. Points International Ltd. YD Online Corp. Tree.Com, Inc. Actoz Soft Co., Ltd. HUGHES Telematics, Inc. Paid Inc. GameOn Co Ltd. TheStreet.com, Inc. Fluid Music Canada, Inc. The9 Limited Webzen Inc. GigaMedia Ltd. XING AG OAO RBC Information Systems Myriad Group AG Openwave Systems Inc. CDC Corp. Velti Plc dominates group Gamania Digital Entertainment Co., Ltd. NetDragon WebSoft, Inc. GungHo Online Entertainment, Inc. infoGROUP, Inc. RealNetworks Inc. Shutterfly, Inc. Tencent’s $36 bn market cap United Online, Inc. NEOWIZ Games Corporation SK Communications Co., Ltd. Mixi, Inc. Kingsoft Corporation Limited Chinese Gamer International ValueClick, Inc. Hutchison Telecommunications Hong Kong Holdings Taleo Corp. Perfect World Co., Ltd. The New York Times Company Changyou.com Limited Giant Interactive Group, Inc. Sohu.com Inc. AOL, Inc. IAC/InterActiveCorp. Open Text Corp. Gree, Inc. Shanda Interactive Entertainment Ltd. Modern Times Group Mtg AB Dena Co. Ltd. Netease.com Inc. Tencent Holdings Ltd. www.mackieresearch.com
    • Price Performance – 1 Week • Negative momentum for yet another week with 62% of stocks falling over the Price Momentum past week (following on last week’s 69% decliner figure and 62% in the week prior to that). Rising 30% Falling 62% Flat 8% 17 www.mackieresearch.com
    • Average Price Performance – 1 Week, by Sector 30.0% 25.0% Podcasting securities get 20.0% biggest boost 13.2% 11.3% 10.0% 2.3% 0.0% -1.9% -1.9% -1.9% -2.1% -2.3% -2.5% -2.7% -3.3% -3.4% -3.5% -4.2% -4.8% -10.0% -6.0% -7.3% -7.3% -12.1% -20.0% -16.7% -21.4% -30.0% Internet Retail Infrastructure Collaboration Networking Virtual World Financial Payment Communities Learning Advertising Music Podcasting Marketing Dating Mobile Diversified Enterprise Gaming Search Services Media SMS/Voice Video Social Vertical Source: CapitalIQ 18 www.mackieresearch.com
    • 19 -60.0% -40.0% -20.0% 0.0% 20.0% 40.0% 60.0% BWBA PWRD 2497 SHHD WDDD Source: CapitalIQ 3838 TSX:NLN MBYL OMEDIA A052790 2121 VOIS TSXV:MMC CM:DA DGLP DB:M0C CHIN.A BYOC NXPC SPXA WSE:IGR NCTY UNLA KIWB 3765 IEE 3812 TSXV:USS A066270 TSX:FMN A095660 IASC.A 3888 TSXV:PN A023770 WEBM A052770 LOV SNDA TSE:2432 NTES CYOU TREE ASX:JMB RNWK SEHK:215 TSX:PTS TSX:SCR Price Performance – 1 Week 777 A047080 GRVY SOHU SCLW ACLZ OPWV KNTH GA NYT QPSA KOSE:A06 HUTC UNTD RVLU 700 GEO1V STVI DGTW ETGI DPDM CWRL MTG B UOMO IUSA 590057 TSCM PAYD O1BC SFLY AOL TSE:3632 OTEX GTSM:308 RBCI 6180 MYRN GLUU TLEO FRG GIGM IACI TSXV:TNG AIM:BGT XTRA:A5A TSXV:LM TSX:CX MKB VCLK LOOK WZE VEL www.mackieresearch.com
    • 20 0% 20% 40% 60% 80% 100% 120% 140% 0% 500% 1000% 1500% 2000% 2500% OAO RBC Information DigitalTown, Inc. Systems Quepasa Corp. LookSmart, Ltd. Source: CapitalIQ Uniserve Communications Velti Plc Corp. AQ Interactive, IAS Energy, Inc. Inc. SK SNAP Communications Interactive, Inc. Co., Ltd. 6 Month 1 Month Uniserve Velti Plc Communications Corp. SK Communications Glu Mobile, Inc. Co., Ltd. SNAP Dena Co. Ltd. Interactive, Inc. Score Media Inc. Quepasa Corp. Points Fluid Music International Ltd. Canada, Inc. Price Performance (Top 10) 0% 20% 40% 60% 80% 100% 120% 140% 160% 180% 0% 500% 1000% 1500% 2000% 2500% 3000% 3500% OAO RBC Information IAS Energy, Inc. Systems Beyond Quepasa Corp. Commerce, Inc. Unilava Velti Plc Corporation DigitalPost SNAP Interactive, Inc. Interactive, Inc. Uniserve Communications LookSmart, Ltd. Corp. 1 Year 3 Month TransGaming, Quepasa Corp. Inc. Fluid Music Velti Plc Canada, Inc. Dena Co. Ltd. GameOn Co Ltd. Frogster Interactive DigitalTown, Inc. Pictures AG SK Gree, Inc. Communications Co., Ltd. www.mackieresearch.com
    • 21 -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% Actoz Soft Perfect World Co., Ltd. Co., Ltd. Mobile Data Source: CapitalIQ Cyberplex Inc. Corp. Kiwibox.Com, Oriented Media Inc. Group Berhad NeuLion DADA SpA Incorporated AQ Interactive, iseemedia Inc. Inc. 1 Week 6 Month Sahara Media Worlds.com Holdings, Inc. Inc. UOMO Media, Sahara Media Inc Holdings, Inc. CornerWorld Ngi Group Inc. Corporation En2Go Perfect World International, Co., Ltd. Inc. BroadWebAsia BroadWebAsia 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% NeuLion Dolphin Digital Incorporated Media, Inc. DADA SpA Ynk Korea Inc. SpectrumDNA, The9 Limited Inc. Mobile Data Ngi Group Inc. Corp. CornerWorld Worlds.com Corporation Inc. 1 Year 1 Month En2Go Sahara Media International, Holdings, Inc. Inc. Beyond Oriented Media Commerce, Group Berhad Inc. Sahara Media Mobile Data Holdings, Inc. Corp. BroadWebAsia BroadWebAsia Inc. Inc. UOMO Media, CornerWorld Inc Corporation www.mackieresearch.com
    • Capital Market Activity (Financing, M&A) 22 www.mackieresearch.com
    • Financing Activity – Current Month Fin. Am ount (Million) T ype of financing Month C om pany Nam e C ountr y S e ctor Acquis ition Ange l/S e e d S e rie s A S e rie s B S e rie s C Grand T otal May-10 C ube T r e e US A Collaboration 50.0 50.0 Gilt Gr oupe US A Internet R etail 35.0 35.0 S cout L abs US A A naly tic s 20.0 20.0 Booyah US A V irtual World 20.0 20.0 Fatfoogoo A us tria V irtual G oods 10.0 10.0 Wor ldw ide w or k e r UA E V ertic al Communities 9.0 9.0 V antrix Canada Mobile 8.7 8.7 BuzzFe e d US A A ggregation 8.0 8.0 S w ipe ly US A S oc ial Commerc e 7.5 7.5 C r ite o US A A dvertis ing 7.0 7.0 Gr ock it US A V irtual World 7.0 7.0 J e lli US A Mus ic 7.0 7.0 Wor dS tre am US A S earc h 6.0 6.0 S tack Ove r flow US A V ertic al Communities 6.0 6.0 Enquis ite US A A naly tic s 5.2 5.2 Ad.ly US A A dvertis ing 5.0 5.0 He lloWalle t US A Financ ial S ervic es 3.6 3.6 T ick e tfly US A V ertic al Communities 3.0 3.0 Woozw or ld Canada V irtual World 3.0 3.0 Gr oupalia S pain S oc ial Commerc e 2.5 2.5 Ne w s y US A Media 2.0 2.0 T he Extraor dinar ie s US A Mobile 1.1 1.1 L ocalytics US A A naly tic s 0.7 0.7 Etacts US A Infras truc ture 0.7 0.7 MightyMe e ting US A Collaboration 0.3 0.3 appr upt Germany Mobile A d May-10 T otal 89.0 4.1 33.3 19.0 82.9 228.3 23 www.mackieresearch.com
    • Financing Activity – Current Month, by Sector $ Raised # Deals Infrastructure Enterprise Internet Retail Advertising Media 3% 3% 7% Financial Collaboration Analytics 6% Services 3% 7% 7% 3% Search 3% Virtual World Music 8% 3% Virtual World Aggregation 13% 3% Other Gaming 3% 51% Collaboration Mobile 14% 7% Analytics 10% Virtual Goods 3% Social Advertising Commerce Internet Retail Vertical 10% 7% 14% Communities 10% 24 www.mackieresearch.com
    • Financing Activity 900.0 18.0 $513 mm (ex-DST) with $10.7 16.6 800.0 mm average deal size 16.0 700.0 14.0 12.5 12.2 600.0 12.0 10.1 500.0 9.1 10.0 (US$m) (US$m) 8.9 8.2 400.0 8.0 6.6 6.6 6.2 300.0 5.5 5.3 6.0 4.6 200.0 4.0 100.0 2.0 0.0 0.0 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-10 *May-09 includes $200m FB investment Dec-09 includes $180m Zynga investment Total Average Apr-10 includes $300m DST investment 25 www.mackieresearch.com
    • 26 (US$m) 0.0 50.0 100.0 150.0 200.0 250.0 300.0 350.0 # companies 1 Diversified 8 Mobile 4 Collaboration 8 Gaming Crowdsourced 6 Content Social 6 Commerce 6 Media 9 Video Advertising 16 Social 10 Networks 4 Internet Retail Analytics 10 Financial 7 Services 6 Virtual World Vertical 9 Communities 3 Mobile Ad 2 Widget 6 Search Mobile 2 Payment 3 Enterprise Location- 4 based SNS Online 1 Learning 2 Music Advertising has most deals in last 3 months 1 Virtual Goods 3 Travel 2 Infrastructure 1 Aggregation 2 Blog 1 Classified 1 Capital Market Activity Ranking – by Sector, last three months Micromedia 1 Online Dating 1 Microblog www.mackieresearch.com
    • 27 (US$ mm) 0.0 100.0 200.0 300.0 400.0 500.0 600.0 700.0 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Social Networks Dec-08 Jan-09 Gaming Feb-09 Mar-09 $ Raised Apr-09 Advertising May-09 Jun-09 Jul-09 Virtual World Aug-09 Sep-09 Video Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Top 5 Sectors (2008-present) (# Deals) 0 5 10 15 20 25 30 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Social Networks Dec-08 Jan-09 Feb-09 Advertising Mar-09 Apr-09 Gaming May-09 # Deals Jun-09 Jul-09 Virtual World Aug-09 Sep-09 Video Oct-09 Nov-09 Dec-09 Jan-10 Top 5 sectors average $155m & 14 deals per month (aggregate) Feb-10 Mar-10 Apr-10 May-10 www.mackieresearch.com
    • Upcoming Events/Earnings Company Date Time Quarter Conf Call Details Giant Interactive Group, Inc. (NYSE:GA) 17-May-10 9:00 PM (EST) Q1/10 1-866-804-6921 Wizzard Softw are Corporation (AMEX:WZE) 18-May-10 1:00 PM (EST) Q1/10 1-877-407-8033 Netease.com Inc. (NasdaqGS:NTES) 19-May-10 9:00 PM (EST) Q1/10 877-941-2069 Source: CapitalIQ 28 www.mackieresearch.com
    • Public Company Listing Trading C urrent US $ Market C ompany Name Tic ker E xc hange C urrenc y HQ P rice C ap (mm) E mployees Accelerize New Media , Inc. AC L Z OT C B B US D U nited S ta tes 1 16. 6 10 Actoz S oft C o. , L td. A052790 K OS E KRW S outh K orea 11, 100 84. 8 NA AO L , Inc. AO L NY S E US D U nited S ta tes 24 2, 554. 9 6, 700 AQ Interactive, Inc. 3838 TS E JPY J a pa n 122, 500 72. 3 NA As knet AG XT R A: A5A XT R A E UR G erma ny 4 22. 3 NA B eyond C ommerce, Inc. B Y OC OT C B B US D U nited S ta tes 0 4. 3 NA B right T hings plc AIM: B G T AIM GBP U nited K ingdom 0 6. 4 9 B roa dW ebAs ia Inc. BWBA OT C P K US D U nited S ta tes 0 1. 7 46 C DC C orp. C HIN. A Nas daqG S US D H ong K ong 2 244. 2 NA C ha ngyou. com L imited C Y OU Nas daqG S US D C hina 29 1, 489. 8 1, 308 C hines e G a mer Interna tional G T S M: 3083 GTS M TWD T a iwa n 344 925. 3 NA C ornerW orld C orpora tion CWR L OT C B B US D U nited S ta tes 0 1. 9 16 C yberplex Inc. T S X: C X TS X C AD C anada 1 46. 1 NA DADA S pA C M: DA CM E UR Italy 3 67. 0 NA Dena C o. L td. T S E : 2432 TS E JPY J a pa n 792, 000 4, 079. 9 NA Digita lP os t Intera ctive, Inc. DG L P OT C B B US D U nited S ta tes 0 4. 5 6 Digita lT own, Inc. DG T W OT C B B US D U nited S ta tes 2 48. 0 3 Dolphin Digita l Media, Inc. DP DM OT C B B US D U nited S ta tes 0 17. 0 NA E n2G o Internationa l, Inc. E TGI OT C B B US D U nited S ta tes 0 4. 8 NA F luid Mus ic C anada , Inc. T S X: F MN TS X C AD U nited S ta tes 2 112. 4 NA F rogs ter Intera ctive P ictures AG FR G XT R A E UR G erma ny 19 59. 6 NA G a ma nia Digital E nterta inment C o. , L td. 6180 GTS M TWD T a iwa n 52 253. 8 NA G a meO n C o L td. 3812 TS E JPY J a pa n 87, 000 94. 0 NA G eoS entric O yj G E O 1V HL S E E UR F inla nd 0 44. 2 120 G iant Intera ctive G roup, Inc. GA NY S E US D C hina 7 1, 644. 4 NA G iga Media L td. G IG M Nas daqG S US D T a iwa n 2 134. 7 751 G lu Mobile, Inc. G L UU Nas daqG M US D U nited S ta tes 1 40. 4 479 G ra vity C o. , L td GR VY Nas daqG M US D S outh K orea 2 51. 4 469 G ree, Inc. T S E : 3632 TS E JPY J a pa n 5, 590 2, 743. 0 NA G ungHo O nline E nterta inment, Inc. 3765 OS E JPY J a pa n 230, 000 286. 3 NA H anbitS oft, Inc. A047080 K OS E KRW S outh K orea 3, 935 74. 7 NA H UG HE S T elematics , Inc. HUT C OT C B B US D U nited S ta tes 3 85. 2 276 H utchis on T elecommunications Hong K ong HS E HK : 215 S E HK HK D H ong K ong 2 987. 4 1, 732 IAC /InterActiveC orp. IAC I Nas daqG S US D U nited S ta tes 23 2, 561. 5 3, 200 IAS E nergy, Inc. IAS C . A OT C P K US D C anada 0 11. 3 NA infoG R O UP , Inc. IUS A Nas daqG S US D U nited S ta tes 8 461. 9 3, 146 Internet G roup S A W S E : IG R WSE P LN P oland 1 9. 5 NA 29 www.mackieresearch.com
    • Public Company Listing cont. Trading C urrent US $ Market C ompany Name Tic ker E xc hange C urrenc y HQ P ric e C ap (mm) E mployees is eemedia Inc. IE E T S XV C AD C ana da 0. 11 7. 0 79 J umbuck E ntertainment L imited AS X: J MB AS X AUD Aus tralia 0. 24 10. 0 NA K ent International Holdings Inc. K NT H OT C P K US D U nited S tates 1. 80 6. 4 NA K ings oft C orporation L imited 3888 S E HK HK D C hina 5. 54 773.6 6 K iwibox. C om, Inc. K IW B OT C B B US D U nited S tates 0. 01 4. 9 NA L ingo Media C orporation T S XV :L M T S XV C AD C ana da 0. 69 8. 3 65 L ookS mart, L td. LOOK Nas daqG M US D U nited S tates 1. 80 30. 9 NA Mixi, Inc. 2121 TSE JPY J apa n 457,000. 00 766.4 NA Mobile Data C orp. MB Y L OT C B B US D U nited S tates 0. 05 1. 2 2,936 Modern T imes G roup Mtg AB MT G B OM SEK S weden 415. 10 3, 513.0 2 Moggle, Inc DB : M0C DB E UR U nited S tates 1. 00 57. 5 NA MO K O . mobi L imited MK B AS X AUD Aus tralia 0. 08 8. 3 NA Multiplied Media C orporation T S XV :MMC T S XV C AD C ana da 0. 15 36. 1 405 Myriad G roup AG MY R N SWX C HF S witzerland 4. 14 176.8 NA NE O W IZ G ames C orporation A095660 K OS E KRW S outh K orea 36,750. 00 672.0 NA NetDragon W ebS oft, Inc. 777 S E HK HK D C hina 3. 79 256.8 NA Netea s e. com Inc. NT E S Nas daqG S US D C hina 32. 15 4, 164.1 224 NeuL ion Incorporated T S X: NL N TSX C AD C ana da 0. 50 56. 2 NA NeXplore C orpora tion NXP C OT C P K US D U nited S tates 0. 45 25. 1 NA Ngi G roup Inc. 2497 TSE JPY J apa n 38,750. 00 52. 1 160 Northgate T echnologies L imited 590057 BSE INR India 17. 00 13. 0 2,523 O AO R B C Information S ys tems R BCI MIC E X R UB R us s ia 39. 51 174.4 3,700 O pen T ext C orp. OT E X Nas daqG S US D C ana da 45. 22 2, 567.6 590 O penwave S ys tems Inc. OP W V Nas daqG S US D U nited S tates 2. 35 197.1 NA O riented Media G roup B erhad O ME DIA K LS E MY R Malays ia 0. 10 4. 2 20 P aid Inc. P AY D OT C B B US D U nited S tates 0. 35 93. 6 NA P erfect W orld C o., L td. PWRD Nas daqG S US D C hina 24. 71 1, 231.2 NA P NI Digital Media Inc. T S XV :P N T S XV C AD C ana da 1. 70 55. 5 91 P oints Internationa l L td. T S X: P T S TSX C AD C ana da 0. 54 77. 9 71 Q uepas a C orp. QP S A OT C B B US D U nited S tates 4. 95 64. 2 NA R ea l V a lue E s ta tes , Inc. R V LU OT C B B US D Is rael 1. 03 6. 6 1,754 R ea lNetworks Inc. R NW K Nas daqG S US D U nited S tates 3. 94 532.9 NA S ahara Media Holdings , Inc. S HHD OT C B B US D U nited S tates 0. 16 5. 4 220 S core Media Inc. T S X: S C R TSX C AD C ana da 0. 81 63. 3 NA S ha nda Interactive E ntertainment L td. S NDA Nas daqG S US D C hina 42. 43 2, 853.6 519 S hutterfly, Inc. S FLY Nas daqG S US D U nited S tates 22. 65 608.3 NA 30 www.mackieresearch.com
    • Public Company Listing cont. Trading C urrent US $ Market C ompany Name Tic ker E xc hange C urrenc y HQ P rice C ap (mm) E mployees S K C ommunications C o. , L td. A066270 K OS E KRW S outh K orea 18, 550. 00 675. 5 15 S NAP Interactive, Inc. STVI OT C B B US D U nited S ta tes 0. 19 6. 3 NA S ocialwis e, Inc. S C LW OT C B B US D U nited S ta tes 0. 53 26. 5 3, 997 S ohu. com Inc. S OHU Nas daqG S US D C hina 44. 89 1, 697. 7 155 S pa rk Networks , Inc. LOV AME X US D U nited S ta tes 3. 34 68. 8 NA S pectrumDNA, Inc. S P XA OT C B B US D U nited S ta tes 0. 09 6. 2 916 T a leo C orp. T LE O Nas daqG M US D U nited S ta tes 25. 21 1, 002. 3 7, 515 T encent Holdings L td. 700 S E HK HK D C hina 154. 20 36, 142. 4 7, 665 T he New Y ork T imes C ompany NY T NY S E US D U nited S ta tes 9. 26 1, 348. 3 1, 010 T he9 L imited NC T Y Nas daqG S US D C hina 4. 84 123. 5 274 T heS treet. com, Inc. TS CM Nas daqG M US D U nited S ta tes 3. 26 102. 9 28 T ra ns G a ming, Inc. T S XV : T NG T S XV C AD C anada 0. 69 39. 5 700 T ree. C om, Inc. TR EE Nas daqG M US D U nited S ta tes 7. 21 80. 8 39 U nila va C orpora tion UNL A OT C B B US D U nited S ta tes 0. 40 40. 0 NA U nis erve C ommunica tions C orp. T S XV : US S T S XV C AD C anada 0. 12 3. 3 1, 699 U nited O nline, Inc. UNT D Nas daqG S US D U nited S ta tes 7. 22 629. 1 NA U O MO Media, Inc UO MO OT C B B US D C anada 0. 03 2. 2 1, 086 V alueC lick, Inc. V C LK Nas daqG S US D U nited S ta tes 11. 41 927. 9 450 V elti P lc VE L AIM GBP U nited K ingdom 4. 60 252. 8 2 V O IS , Inc. V O IS OT C B B US D U nited S ta tes 0. 01 8. 0 83 W ebMedia B ra nds Inc WEBM Nas daqG S US D U nited S ta tes 1. 00 37. 4 NA W ebzen Inc. K O S E : A069080 K OS E KRW S outh K orea 12, 550. 00 129. 0 80 W izza rd S oftwa re C orpora tion W ZE AME X US D U nited S ta tes 0. 25 14. 5 NA W orlds . com Inc. W DDD OT C B B US D U nited S ta tes 0. 08 4. 6 NA XING AG O 1B C XT R A E UR G erma ny 27. 03 171. 8 NA Y D O nline C orp. A052770 K OS E KRW S outh K orea 6, 100. 00 79. 4 NA Y nk K orea Inc. A023770 K OS E KRW S outh K orea 2, 800. 00 19. 4 - 31 www.mackieresearch.com
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