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    10 06-08 web 2.0 weekly 10 06-08 web 2.0 weekly Presentation Transcript

    • Web 2.0 Weekly “Strong Week in Web 2.0 M&A” June 8, 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) – Acquisitions the Key Feature in the Landscape Google (Nasdaq:GOOG) acquired advertising analytics firm, Invite Media, for a rumoured US$70 mm. In the gaming sector, Challenge Games, the virtual goods funded game maker, was acquired by Zynga for US$20.5 mm. FetchBack, a post-customer interaction advertising platform, was acquired for US$40 mm by GSI Commerce. The largest financing in the week outside of acquisitions was US$40 mm raised by HauteLook, a Los Angeles-based luxury Internet retailer. Financial Results/Guidance Shanda Interactive (Nasdaq:SNDA), a Chinese diversified entertainment media company, reported revenue decline of 16% Y/Y to RMB1,107 mm as the company’s gaming revenues registered a decline. 2 www.mackieresearch.com
    • Public Company Data 3 www.mackieresearch.com
    • Aggregate Public Data Web 2.0 Public Companies Total Median Max Min # Companies 102 - - - Market Cap (US$ mm) 78,702.4 66.4 34,512.6 1.4 Revenue (US$ mm) 23,227.2 55.2 3,057.7 0.0 1 Year revenue growth 5.0% 8961.6% -100.0% EBITDA as % of revenue - 13.3% 63.1% -63.7% Net cash (US$ mm) 8,902.1 1.8 1,826.4 -670.8 TEV/Revenue - 2.0x 42.8x 0.0x TEV/EBITDA - 8.5x 48.9x 0.0x P/E - 16.7x 81.3x 0.0x Relative to 52 week high -40.7% 0.0% -95.6% Source: CapitalIQ 4 www.mackieresearch.com
    • 5 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 10% 2% Rising 35% Falling 56% Rising 42% Falling 55% EV/EBITDA P/E Flat Flat 2% 3% Falling Falling 55% 53% Rising Rising 43% 44% 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 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 Median EV/Revenue 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 Median 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 Long-term average 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 down fourth 3/22/2010 3/29/2010 consecutive week Revenue multiples 4/5/2010 4/12/2010 4/19/2010 4/26/2010 5/3/2010 5/10/2010 5/17/2010 5/24/2010 5/31/2010 6/7/2010 393940414141414143454646474747484951515150545556616161626666666465667070707073727068717371777378777980818180828183858484 www.mackieresearch.com
    • 8 Source: CapitalIQ Multiple (x) # companies 0.0x 5.0x 10.0x 15.0x 20.0x 25.0x 30.0x 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 Median EV/EBITDA 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 Median 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 Long-term average 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 below LT average remain depressed 3/22/2010 3/29/2010 EV/EBITDA multiples 4/5/2010 4/12/2010 4/19/2010 4/26/2010 5/3/2010 5/10/2010 5/17/2010 5/24/2010 5/31/2010 6/7/2010 2021 2223 23 2222 2224 2326 2324 2426 27 2726 2525 2628 3030 34 3535 3740 3839 3939 4142 39 3941 4342 4143 4443 44 4444 4545 4850 5053 5353 51 5249 5051 www.mackieresearch.com
    • 9 Source: CapitalIQ Multiple (x) # companies 0.0x 5.0x 10.0x 15.0x 20.0x 25.0x 30.0x 35.0x 4/20/2009 4/27/2009 5/4/2009 Median P/E 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 Median 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 Long-term average 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 below LT average 3/29/2010 P/E multiples also 4/5/2010 4/12/2010 4/19/2010 4/26/2010 5/3/2010 5/10/2010 5/17/2010 5/24/2010 5/31/2010 6/7/2010 1919 1818 19 1819 1820 2020 1819 1920 21 2425 2424 2526 2827 31 3232 3234 3435 3638 4040 39 4041 4142 3840 4041 38 3835 3333 3235 3536 3535 37 3432 3635 www.mackieresearch.com
    • 10 - 5.0 10.0 15.0 20.0 25.0 # Companies 2 Infrastructure 2 Music 7 Social Networking 1 Learning 5 Diversified 1 Vertical Communities 4 Mobile 3 SMS/Voice 6 Marketing Gaming 21 1 Search 1 Collaboration EV/Revenue 9 Media 3 Advertising 1 Podcasting 1 Video 2 Internet Retail 3 Enterprise 2 Dating 1 Financial Services 1 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 1 Mobile 2 Enterprise 5 Diversified 2 Internet Retail 6 Media 1 Collaboration 5 Social Networking EV/EBITDA Gaming 14 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 RealNetworks Inc. GameOn Co Ltd. Cyberplex Inc. Actoz Soft Co., Ltd. Source: CapitalIQ Openwave Systems Inc. Jumbuck Entertainment Limited Tree.Com, Inc. GigaMedia Ltd. Glu Mobile, Inc. Northgate Technologies Limited Points International Ltd. DADA SpA Uniserve Communications Corp. AOL, Inc. 0.20.2 0.20.30.30.30.4 0.60.60.60.60.6 0.70.70.7 CDC Corp. United Online, Inc. IAC/InterActiveCorp. The New York Times Company TheStreet.com, Inc. NetDragon WebSoft, Inc. Internet Group SA CornerWorld Corporation OAO RBC Information Systems AQ Interactive, Inc. HanbitSoft, Inc. infoGROUP, Inc. EV/Revenue Ranking Hutchison Telecommunications Hong Kong SNAP Interactive, Inc. Oriented Media Group Berhad NeuLion Incorporated Gamania Digital Entertainment Co., Ltd. 0.80.80.80.80.8 1.0 1.0 1.0 1.1 1.2 1.3 1.3 1.4 1.4 1.4 1.5 1.5 Spark Networks, Inc. Shutterfly, Inc. ValueClick, Inc. GungHo Online Entertainment, Inc. Platforma Mediowa Point Group S.A. Score Media Inc. UOMO Media, Inc PNI Digital Media Inc. Sohu.com Inc. Modern Times Group Mtg AB Velti Plc Webzen Inc. XING AG 1.7 1.7 1.8 1.9 2.02.0 2.12.12.12.22.2 2.22.2 NEOWIZ Games Corporation Open Text Corp. Frogster Interactive Pictures AG Wizzard Software Corporation iseemedia Inc. Unilava Corporation ePro Ltd. Myriad Group AG Kingsoft Corporation Limited 2.62.62.8 2.9 3.03.0 3.13.33.3 Taleo Corp. Mixi, Inc. SK Communications Co., Ltd. revenue multiple at 42.8x SpectrumDNA has highest 3.53.9 4.1 Changyou.com Limited WebMediaBrands Inc Fluid Music Canada, Inc. 4.74.9 5.2 Accelerize New Media, Inc. 5.6 HUGHES Telematics, Inc. DigitalPost Interactive, Inc. 7.5 7.9 TransGaming, Inc. Dena Co. Ltd. Gree, Inc. Lingo Media Corporation 9.79.910.0 Chinese Gamer International 10.4 GeoSentric Oyj Beyond Commerce, Inc. MOKO.mobi Limited 11.811.912.0 Paid Inc. 12.7 Tencent Holdings Ltd. 18.1 Bright Things plc 31.4 SpectrumDNA, Inc. 32.7 Worlds.com Inc. 42.8 www.mackieresearch.com
    • 12 0.0 10.0 20.0 30.0 40.0 50.0 60.0 AOL, Inc. Cyberplex Inc. 2.1 3.1 Source: CapitalIQ United Online, Inc. NetDragon WebSoft, Inc. The New York Times Company Sohu.com Inc. 3.8 4.4 4.9 4.9 Hutchison Telecommunications Hong Kong Holdings 5.4 Ltd. CDC Corp. ValueClick, Inc. Changyou.com Limited infoGROUP, Inc. Uniserve Communications Corp. GungHo Online Entertainment, Inc. EV/EBITDA Ranking Spark Networks, Inc. 6.1 6.2 6.5 6.7 6.9 7.3 7.5 DADA SpA Kingsoft Corporation Limited NEOWIZ Games Corporation PNI Digital Media Inc. Velti Plc XING AG Gamania Digital Entertainment Co., Ltd. 7.7 7.8 7.9 8.4 8.5 8.7 8.8 Open Text Corp. IAC/InterActiveCorp. Platforma Mediowa Point Group S.A. 9.3 9.5 10.6 Openwave Systems Inc. 11.3 Score Media Inc. at 48.9x Shutterfly, Inc. HanbitSoft, Inc. TheStreet.com, Inc. 12.7 12.8 13.2 13.8 Mixi, Inc. Tree.com leads the group Modern Times Group Mtg AB 14.6 15.0 Frogster Interactive Pictures AG Gree, Inc. 16.2 17.3 Chinese Gamer International 20.4 Dena Co. Ltd. 22.5 Taleo Corp. 24.7 Tencent Holdings Ltd. 34.8 SK Communications Co., Ltd. 41.3 Points International Ltd. 46.3 Tree.Com, Inc. 48.9 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 Source: CapitalIQ Uniserve Communications Corp. 4.1 United Online, Inc. 9.2 GameOn Co Ltd. 9.3 Changyou.com Limited P/E Ranking AOL, Inc. DADA SpA 9.5 10.5 11.3 Cyberplex Inc. Kingsoft Corporation Limited Sohu.com Inc. The New York Times Company ValueClick, Inc. 12.9 13.2 13.5 14.0 14.5 Hutchison Telecommunications Hong Kong Holdings Ltd. NEOWIZ Games Corporation Frogster Interactive Pictures AG 16.7 18.6 18.7 NetDragon WebSoft, Inc. 20.4 Velti Plc Chinese Gamer International 26.7 27.2 Gamania Digital Entertainment Co., Ltd. 31.6 Gree, Inc. 33.7 Shutterfly has the Open Text Corp. 40.7 highest P/E at 81.3x Mixi, Inc. CDC Corp. Tencent Holdings Ltd. infoGROUP, Inc. 45.5 45.8 46.1 46.8 Points International Ltd. 48.0 Dena Co. Ltd. 51.4 HanbitSoft, Inc. 70.6 Actoz Soft Co., Ltd. 73.4 Shutterfly, Inc. 81.3 www.mackieresearch.com
    • 14 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 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 Total Market Capitalization 11/16/2009 98 98 98 98 98 98 98 98 98 98 98 98 97 98 98 98 98 99 99 99 99 99100 11/23/2009 11/30/2009 100101 12/7/2009 12/14/2009 101101 12/21/2009 12/28/2009 1/4/2010 101 1/11/2010 1/18/2010 101101 101101 1/25/2010 2/1/2010 101101 2/8/2010 2/15/2010 Total market cap above $80 bn 2/22/2010 102 3/1/2010 3/8/2010 101101 102102 3/15/2010 3/22/2010 3/29/2010 102 4/5/2010 4/12/2010 102102 102102 4/19/2010 4/26/2010 102102 5/3/2010 5/10/2010 5/17/2010 102 5/24/2010 5/31/2010 102102 102102 6/7/2010 102 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 8 Diversified Gaming 28 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 2 Dating 1 Financial Services 3 Advertising 2 Virtual World 1 Video 1 Vertical Communities Eight Diversified companies 1 Payment totaling over $37.5 bn in market cap 3 Infrastructure 1 Learning 1 Podcasting www.mackieresearch.com
    • 16 0 1,000 2,000 3,000 4,000 5,000 6,000 UOMO Media, Inc BroadWebAsia Inc. CornerWorld Corporation Mobile Data Corp. Source: CapitalIQ Uniserve Communications Corp. IAS Energy, Inc. Oriented Media Group Berhad SpectrumDNA, Inc. En2Go International, Inc. Kiwibox.Com, Inc. SNAP Interactive, Inc. Bright Things plc Real Value Estates, Inc. MOKO.mobi Limited Beyond Commerce, Inc. Worlds.com Inc. DigitalPost Interactive, Inc. Kent International Holdings Inc. iseemedia Inc. Internet Group SA Jumbuck Entertainment Limited Northgate Technologies Limited Dolphin Digital Media, Inc. Wizzard Software Corporation Sahara Media Holdings, Inc. Lingo Media Corporation Accelerize New Media, Inc. Asknet AG VOIS, Inc. NeXplore Corporation Unilava Corporation Socialwise, Inc. Market Cap Ranking LookSmart, Ltd. Multiplied Media Corporation GeoSentric Oyj TransGaming, Inc. Cyberplex Inc. DigitalTown, Inc. WebMediaBrands Inc Glu Mobile, Inc. ePro Ltd. Moggle, Inc NeuLion Incorporated Ngi Group Inc. Platforma Mediowa Point Group S.A. Frogster Interactive Pictures AG PNI Digital Media Inc. Quepasa Corp. Gravity Co., Ltd Score Media Inc. DADA SpA Paid Inc. HanbitSoft, Inc. Tree.Com, Inc. Spark Networks, Inc. Points International Ltd. Actoz Soft Co., Ltd. GameOn Co Ltd. TheStreet.com, Inc. HUGHES Telematics, Inc. AQ Interactive, Inc. The9 Limited Fluid Music Canada, Inc. Webzen Inc. GigaMedia Ltd. Openwave Systems Inc. OAO RBC Information Systems Myriad Group AG XING AG NetDragon WebSoft, Inc. CDC Corp. dominates group GungHo Online Entertainment, Inc. Velti Plc Gamania Digital Entertainment Co., RealNetworks Inc. infoGROUP, Inc. United Online, Inc. Tencent’s $33 bn market cap Shutterfly, Inc. Kingsoft Corporation Limited Mixi, Inc. SK Communications Co., Ltd. NEOWIZ Games Corporation Chinese Gamer International ValueClick, Inc. Taleo Corp. Hutchison Telecommunications Hong Perfect World Co., Ltd. The New York Times Company Changyou.com Limited Sohu.com Inc. Giant Interactive Group, Inc. AOL, Inc. Open Text Corp. IAC/InterActiveCorp. Shanda Interactive Entertainment Ltd. Modern Times Group Mtg AB Gree, Inc. Netease.com Inc. Dena Co. Ltd. Tencent Holdings Ltd. www.mackieresearch.com
    • Price Performance – 1 Week • Negative momentum returns, with 59% of stocks falling over the past week. Price Momentum Rising Falling 31% 59% Flat 10% 17 www.mackieresearch.com
    • Average Price Performance – 1 Week, by Sector 30.0% 26.3% 25.0% Five sectors showed positive returns 20.0% 15.0% 10.0% 5.1% 4.3% 5.0% 2.7% 1.4% 0.0% 0.0% 0.0% -0.8% -1.1% -1.3% -1.6% -5.0% -4.7% -5.5% -5.9% -10.0% -6.5% -6.8% -7.5% -7.8% -10.5%-11.6%-12.1% -15.0% -20.0% -16.9% Internet Retail Infrastructure Virtual World Collaboration Networking Financial Payment Communities Advertising Learning Music Dating Search Podcasting Gaming Diversified Enterprise Marketing Mobile 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 UNLA TSXV:USS GEO1V TSXV:MMC Source: CapitalIQ PAYD MBYL DPDM SHHD BYOC SPXA LOOK TSXV:LM IEE 2121 NXPC GTSM:3083 PWRD GIGM TSXV:TNG NYT 2497 RNWK ACLZ XTRA:A5A TSXV:PN CHIN.A TSCM TLEO QPSA A095660 TREE VCLK DGLP 6180 OPWV MKB UNTD FRG OTEX VOIS NCTY SFLY IACI KOSE:A069080 SOHU RBCI HUTC VEL Price Performance – 1 Week 3888 590057 WSE:IGR MTG B 700 WSE:PGM TSX:NLN GLUU A047080 AOL IUSA IASC.A CWRL RVLU SCLW ETGI TSX:CX TSX:PTS UOMO WZE KIWB NTES A052770 777 O1BC 3812 GA 3765 CM:DA CYOU LOV MYRN SNDA A066270 TSX:FMN A052790 SEHK:215 DGTW TSE:2432 WEBM GRVY OMEDIA A023770 DB:M0C SEHK:8086 TSX:SCR KNTH TSE:3632 ASX:JMB 3838 WDDD AIM:BGT STVI www.mackieresearch.com
    • 20 0% 10% 20% 30% 40% 50% 60% 70% 0% 500% 1000% 1500% 2000% 2500% Sahara OAO RBC Media Information Holdings, Systems Inc. Velti Plc ePro Ltd. Source: CapitalIQ AQ Interactive, ePro Ltd. Inc. Beyond SNAP Commerce, Interactive, Inc. Inc. Beyond Mobile Data Commerce, Inc. Corp. 6 Month 1 Month Velti Plc Gree, Inc. Uniserve Worlds.com Communications Inc. Corp. ValueClick, Quepasa Corp. Inc. SK Bright Communications Things plc Co., Ltd. Myriad Score Media Inc. Group AG Price Performance (Top 10) 0% 50% 100% 150% 200% 250% 300% 350% 400% 0% 500% 1000% 1500% 2000% 2500% 3000% OAO RBC Beyond Information Commerce, Inc. Systems ePro Ltd. ePro Ltd. Quepasa LookSmart, Ltd. Corp. DigitalPost SK Interactive, Communications Inc. Co., Ltd. Dena Co. Ltd. Velti Plc 1 Year 3 Month Velti Plc DigitalTown, Inc. Fluid Music Sahara Media Canada, Inc. Holdings, Inc. TransGaming, Dena Co. Ltd. Inc. VOIS, Inc. Glu Mobile, Inc. AQ Interactive, Gree, Inc. Inc. 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% Beyond Unilava Commerce, Inc. Corporation Sahara Media Actoz Soft Source: CapitalIQ Holdings, Inc. Co., Ltd. Dolphin Digital Cyberplex Inc. Media, Inc. MOKO.mobi Mobile Data Limited Corp. Mixi, Inc. Paid Inc. 1 Week 6 Month Kiwibox.Com, Multiplied Media Inc. Corporation CornerWorld GeoSentric Oyj Corporation En2Go Uniserve International, Communications Inc. Corp. UOMO Media, Unilava Inc Corporation BroadWebAsia BroadWebAsia Inc. Inc. -80.0% -70.0% -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% Wizzard NeuLion Software Incorporated Corporation Dolphin Digital Cyberplex Inc. Media, Inc. SpectrumDNA, Mixi, Inc. Inc. SpectrumDNA, IAS Energy, Inc. Inc. GungHo Online CornerWorld Entertainment, Corporation Inc. 1 Year 1 Month Sahara Media Ngi Group Inc. Holdings, Inc. Beyond Unilava Commerce, Corporation Inc. En2Go BroadWebAsia International, Inc. Inc. UOMO Media, CornerWorld Inc Corporation BroadWebAsia IAS Energy, Inc. Inc. www.mackieresearch.com
    • Capital Market Activity (Financing, M&A) 22 www.mackieresearch.com
    • Financing Activity – Current Month Month Company Name Country Sector Acquisition Angel/Seed Debt financing Series A Series B Series C Series D NA Grand Total Jun-10 Invite Media USA Analytics 70.0 70.0 FetchBack USA Advertising 40.0 40.0 HauteLook USA Internet Retail 31.0 31.0 Challenge Games USA Gaming 20.5 20.5 Marin Software USA Advertising 11.2 11.2 BookRenter USA Social Commerce 10.0 10.0 RockYou USA Widget 10.0 10.0 Transpera USA Mobile Ad 7.0 7.0 Kudzu Interactive USA Financial Services 7.0 7.0 Curse USA Social Networks 6.0 6.0 Metacafe USA Video 5.0 5.0 LucidMedia USA Advertising 4.5 4.5 Giiv USA Social Commerce 3.4 3.4 Trefis USA Analytics 3.2 3.2 Metamarkets USA Advertising 2.5 2.5 Snaptic USA Mobile 2.3 2.3 WOWIO USA Internet Retail 1.7 1.7 Dilithium Networks USA Video 1.5 1.5 Schoology USA Online Learning 1.3 1.3 SoGeo Netherlands Location-based SNS 0.8 0.8 Rummble UK Location-based SNS 0.8 0.8 Jun-10 Total 130.5 4.8 1.5 10.3 17.0 38.0 25.7 11.8 239.6 23 www.mackieresearch.com
    • Financing Activity – Current Month, by Sector $ Raised # Deals Social Social Commerce Other Commerce Gaming 6% 17% 9% 9% Gaming 5% Internet Retail Internet Retail 9% 14% Other 45% Analytics Advertising 30% 18% Advertising 24% Analytics 14% 24 www.mackieresearch.com
    • Financing Activity 1000.0 Strong start to June with ~40% of the 16.0 roughly US$260 mm monthly total 14.3 900.0 deal value average already achieved 14.0 800.0 12.2 12.0 700.0 10.3 10.1 10.0 600.0 8.9 (US$m) (US$m) 7.8 500.0 8.0 6.4 6.6 400.0 5.8 5.9 5.7 5.4 6.0 4.7 300.0 4.0 200.0 2.0 100.0 0.0 0.0 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 *Dec-09 includes $180m Zynga investment Apr-10 includes $300m DST investment Total Average 25 www.mackieresearch.com
    • 26 (US$m) 0.0 50.0 100.0 150.0 200.0 250.0 300.0 350.0 # companies 1 Diversified Gaming 11 5 Collaboration 9 Mobile 6 Media Social 8 Commerce Crowdsourced 2 Content Advertising 14 8 the past quarter Video area of interest in Gaming the biggest Analytics 12 5 Internet Retail Social 8 Networks Financial 5 Services 2 Widget 4 Enterprise Vertical 8 Communities 4 Virtual World 3 Infrastructure Mobile 1 Payment 2 Mobile Ad Online 2 Learning 2 Music 1 Virtual Goods 1 Aggregation 3 Search 1 Classified Location- 4 based SNS 1 Microblog 1 Micromedia Capital Market Activity Ranking – by Sector, last three months 1 Blog 2 Travel 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 Feb-09 Gaming Mar-09 Apr-09 $ Raised May-09 Advertising Jun-09 Jul-09 Video Aug-09 Sep-09 Oct-09 Virtual World Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-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 Dec-08 Social Networks Jan-09 Feb-09 Advertising Mar-09 Apr-09 May-09 Gaming # Deals Jun-09 Jul-09 Aug-09 Virtual World Sep-09 Oct-09 Video Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 Top 5 sectors average $162 mm & 15 deals per month (aggregate) May-10 Jun-10 www.mackieresearch.com
    • Upcoming Events/Earnings Company Date Time Quarter Conf Call Details NetDragon WebSoft, Inc. (SEHK:777) 11-Jun-10 8:00 AM (EST) Q1/10 1-866-770-7129 Source: CapitalIQ 28 www.mackieresearch.com
    • Public Company Listing Trading Current US$ Market Com pany Nam e Ticker Exchange Currency HQ Price Cap (m m ) Em ployees A ccelerize New M edia, Inc. ACLZ OTCBB USD United States 1 15.6 10 A cto z So ft Co ., Ltd. A052790 KOSE KRW So uth Ko rea 10,450 77.2 NA A OL, Inc. AOL NYSE USD United States 21 2,1 99.5 6,700 A Q Interactive, Inc. 3838 TSE JP Y Japan 167,000 98.9 NA A sknet AG XTRA :A 5A XTRA EUR Germany 3 19.9 NA B eyo nd Co mmerce, Inc. BYOC OTCBB USD United States 0 6.6 16 B right Things plc AIM :B GT A IM GB P United Kingdo m 0 6.4 9 B roadWebA sia Inc. BWB A OTCPK USD United States 0 1.7 46 CDC Co rp. CHIN.A NasdaqGS USD Ho ng Ko ng 2 229.1 NA Changyo u.co m Limited CYOU NasdaqGS USD China 27 1,399.0 1,308 Chinese Gamer Internatio nal GTSM :3083 GTSM TWD Taiwan 298 790.7 NA Co rnerWorld Co rpo ratio n CWRL OTCBB USD United States 0 1.9 16 Cyberplex Inc. TSX:CX TSX CA D Canada 1 35.8 NA DA DA SpA CM :DA CM EUR Italy 3 66.5 NA Dena Co . Ltd. TSE:2432 TSE JP Y Japan 2,856 4,436.5 NA DigitalPo st Interactive, Inc. DGLP OTCBB USD United States 0 6.9 6 DigitalTown, Inc. DGTW OTCBB USD United States 1 37.1 3 Do lphin Digital M edia, Inc. DP DM OTCBB USD United States 0 12.4 NA En2Go International, Inc. ETGI OTCBB USD United States 0 4.8 NA ePro Ltd. SEHK:8086 SEHK HKD Ho ng Ko ng 1 39.3 NA Fluid M usic Canada, Inc. TSX:FM N TSX CA D United States 2 11 1 .0 NA Fro gster Interactive P ictures A G FRG XTRA EUR Germany 16 48.6 NA Gamania Digital Entertainment Co ., Ltd. 6180 GTSM TWD Taiwan 54 263.1 NA GameOn Co Ltd. 381 2 TSE JP Y Japan 79,600 86.4 NA Geo Sentric Oyj GEO1 V HLSE EUR Finland 0 32.4 120 Giant Interactive Gro up, Inc. GA NYSE USD China 7 1,623.6 NA GigaM edia Ltd. GIGM NasdaqGS USD Taiwan 2 1 .6 21 NA Glu M o bile, Inc. GLUU NasdaqGM USD United States 1 38.3 479 Gravity Co ., Ltd GRVY NasdaqGM USD So uth Ko rea 2 53.6 469 Gree, Inc. TSE:3632 TSE JP Y Japan 6,820 3,361 .0 NA GungHo Online Entertainment, Inc. 3765 OSE JP Y Japan 195,500 244.4 NA HanbitSo ft, Inc. A047080 KOSE KRW So uth Ko rea 3,920 71 .5 NA HUGHES Telematics, Inc. HUTC OTCBB USD United States 3 97.8 276 Hutchison Teleco mmunicatio ns Ho ng Kong Ho ldings Ltd. SEHK:21 5 SEHK HKD Ho ng Ko ng 2 1,000.9 1,732 IA C/InterActiveCo rp. IA CI NasdaqGS USD United States 23 2,498.3 3,200 IA S Energy, Inc. IA SC.A OTCPK USD Canada 0 3.5 NA infoGROUP , Inc. IUSA NasdaqGS USD United States 8 458.5 3,146 29 www.mackieresearch.com
    • Public Company Listing cont. Trading Current US$ Market Com pany Nam e Ticker Exchange Currency HQ Price Cap (m m ) Em ployees iseemedia Inc. IEE TSXV CA D Canada 0.11 7.3 79 Jumbuck Entertainment Limited A SX:JM B A SX A UD A ustralia 0.23 9.1 NA Kent Internatio nal Ho ldings Inc. KNTH OTCP K USD United States 1.95 6.9 2,735 Kingso ft Co rpo ratio n Limited 3888 SEHK HKD China 4.27 597.6 6 Kiwibo x.Co m, Inc. KIWB OTCB B USD United States 0.01 5.0 NA Lingo M edia Co rpo ratio n TSXV:LM TSXV CA D Canada 0.51 14.2 65 Lo o kSmart, Ltd. LOOK NasdaqGM USD United States 1.52 26.1 NA M ixi, Inc. 2121 TSE JP Y Japan 383,500.00 645.8 NA M o bile Data Co rp. M B YL OTCB B USD United States 0.08 1.9 2,936 M o dern Times Gro up M tg A B M TG B OM SEK Sweden 403.60 3,329.4 2 M o ggle, Inc DB :M 0C DB EUR United States 0.85 47.7 NA M OKO.mo bi Limited M KB A SX A UD A ustralia 0.07 6.6 NA M ultiplied M edia Co rpo ratio n TSXV:M M C TSXV CA D Canada 0.12 27.3 405 M yriad Gro up A G M YRN SWX CHF Switzerland 4.30 179.9 NA NEOWIZ Games Co rpo ratio n A 095660 KOSE KRW So uth Ko rea 40,000.00 702.3 2,901 NetDrago n WebSo ft, Inc. 777 SEHK HKD China 3.38 228.2 NA Netease.co m Inc. NTES NasdaqGS USD China 30.38 3,934.8 224 NeuLio n Inco rpo rated TSX:NLN TSX CA D Canada 0.43 47.7 NA NeXplo re Co rpo ratio n NXP C OTCP K USD United States 0.37 20.6 NA Ngi Gro up Inc. 2497 TSE JP Y Japan 35,500.00 48.0 160 No rthgate Techno lo gies Limited 590057 B SE INR India 15.45 1 .5 1 2,523 OA O RB C Info rmatio n Systems RB CI M ICEX RUB Russia 39.1 0 168.0 3,700 Open Text Co rp. OTEX NasdaqGS USD Canada 40.08 2,275.7 590 Openwave Systems Inc. OP WV NasdaqGS USD United States 2.00 167.7 NA Oriented M edia Gro up B erhad OM EDIA KLSE M YR M alaysia 0.10 4.1 20 P aid Inc. P A YD OTCB B USD United States 0.26 70.5 NA P erfect Wo rld Co ., Ltd. P WRD NasdaqGS USD China 23.35 1 68.9 ,1 NA P latfo rma M edio wa P o int Gro up S.A . WSE:P GM WSE P LN P o land 1.63 48.5 91 P NI Digital M edia Inc. TSXV:P N TSXV CA D Canada 1.60 51 .6 91 P o ints Internatio nal Ltd. TSX:P TS TSX CA D Canada 0.52 74.0 71 Quepasa Co rp. QP SA OTCB B USD United States 4.00 51 .8 NA Real Value Estates, Inc. RVLU OTCB B USD United States 1.03 6.6 1,754 RealNetwo rks Inc. RNWK NasdaqGS USD United States 3.27 442.3 6 Sahara M edia Ho ldings, Inc. SHHD OTCB B USD United States 0.40 13.9 230 Sco re M edia Inc. TSX:SCR TSX CA D Canada 0.86 66.4 NA 30 www.mackieresearch.com
    • Public Company Listing cont. Trading Current US$ Market Com pany Nam e Ticker Exchange Currency HQ Price Cap (m m ) Em ployees SK Co mmunicatio ns Co ., Ltd. A066270 KOSE KRW So uth Ko rea 18,800.00 660.8 15 SNA P Interactive, Inc. STVI OTCBB USD United States 0.18 5.9 NA So cialwise, Inc. SCLW OTCBB USD United States 0.52 26.0 3,997 So hu.co m Inc. SOHU NasdaqGS USD China 42.49 1,606.9 155 Spark Netwo rks, Inc. LOV A M EX USD United States 3.56 73.3 8 SpectrumDNA , Inc. SPXA OTCBB USD United States 0.07 4.8 91 6 Taleo Co rp. TLEO NasdaqGM USD United States 23.02 91 5.3 7,845 Tencent Ho ldings Ltd. 700 SEHK HKD China 146.90 34,51 2.6 7,665 The New Yo rk Times Co mpany NYT NYSE USD United States 8.36 1 7.2 ,21 1 0 ,01 The9 Limited NCTY NasdaqGS USD China 4.21 107.4 274 TheStreet.co m, Inc. TSCM NasdaqGM USD United States 2.86 90.2 28 TransGaming, Inc. TSXV:TNG TSXV CA D Canada 0.62 35.0 700 Tree.Co m, Inc. TREE NasdaqGM USD United States 6.49 72.7 39 Unilava Co rpo ratio n UNLA OTCBB USD United States 0.22 22.0 NA Uniserve Co mmunicatio ns Co rp. TSXV:USS TSXV CA D Canada 0.09 2.4 1,699 United Online, Inc. UNTD NasdaqGS USD United States 6.39 556.8 NA UOM O M edia, Inc UOM O OTCBB USD Canada 0.02 1.4 1,086 ValueClick, Inc. VCLK NasdaqGS USD United States 10.76 875.1 NA Velti P lc VEL A IM GB P United Kingdo m 4.64 252.8 2 VOIS, Inc. VOIS OTCBB USD United States 0.01 20.6 83 WebM ediaB rands Inc WEB M NasdaqGS USD United States 1.00 37.4 NA Webzen Inc. KOSE:A 069080 KOSE KRW So uth Ko rea 12,200.00 120.4 80 Wizzard So ftware Co rpo ratio n WZE A M EX USD United States 0.20 13.2 1 Wo rlds.co m Inc. WDDD OTCBB USD United States 0.12 6.9 NA XING AG O1 C B XTRA EUR Germany 29.29 1 .5 81 NA YD Online Co rp. A052770 KOSE KRW So uth Ko rea 4,540.00 56.7 NA Ynk Ko rea Inc. A023770 KOSE KRW So uth Ko rea 2,890.00 19.2 - 31 www.mackieresearch.com
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