10 07-08 web 2.0 weekly
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10 07-08 web 2.0 weekly

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Summer financing doldrums: After a very strong June (with total transaction value (excluding M&A) of $542.8 million from 66 transactions, averaging $8.4 million each), July has started very slowly ...

Summer financing doldrums: After a very strong June (with total transaction value (excluding M&A) of $542.8 million from 66 transactions, averaging $8.4 million each), July has started very slowly with only one small financing announced. However, we have seen some large M&A transactions (see below). In comparison, total capital raised in July 2009 was $206.2 million, averaging $5.4 million over 38 deals. Excluding Dec 09 and Apr 10, the average monthly total is ~$270 million.
Deals (M&A, Finance)
Google, acquired ITA Software, search provider for the travel industry for $700 mm.

infoGROUP, provider of business and consumer databases for sales leads, mailing lists, direct marketing, database marketing, e-mail marketing, and marketing research solutions, was taken private for $645 mm by CCMP Capital Advisers.

GroupSpaces, a provider of web-based tools for sports clubs, university societies, organizations, and groups of friends or coworkers, raised $1.3 mm.

Domain based online advertising services provider, OCTANE360, was acquired by Local.com for $10.9 mm.

Negative price performance
The Web 2.0 public company universe fell again this week, with 61% of companies seeing their market cap fall vs. 27% rising and 12% flat.

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10 07-08 web 2.0 weekly 10 07-08 web 2.0 weekly Presentation Transcript

  • Web 2.0 Weekly “Big Acquisitions, Little Financing” July 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) – Big Acquisitions, Little Financing Google, acquired ITA Software, search provider for the travel industry for $700 mm. infoGROUP, provider of business and consumer databases for sales leads, mailing lists, direct marketing, database marketing, e-mail marketing, and marketing research solutions, was taken private for $645 mm by CCMP Capital Advisers. GroupSpaces, a provider of web-based tools for sports clubs, university societies, organizations, and groups of friends or coworkers, raised $1.3 mm. Domain based online advertising services provider, OCTANE360, was acquired by Local.com for $10.9 mm. Financial Results/Guidance/Partnerships/Product Points International Ltd. (TSX:PTS) announced that it has formed a partnership with The Mileage Company. The new partnership means that Airmiles UK members can now purchase miles for themselves or gift Airmiles to other members. RealNetworks Inc. (NasdaqGS:RNWK) is once again scaling back its operations and announced a restructuring of its operations which includes layoffs of 85 employees. The layoffs include a 25% reduction in its executive ranks and the reorganization seeks to streamline its technology and media services divisions. The company is now down to 1,365 employees from 1,700, with roughly 65 layoffs coming out of the Seattle office. 2 www.mackieresearch.com
  • Public Company Data 3 www.mackieresearch.com
  • Aggregate Public Data Web 2.0 Public Companies Total Median Max Min # Companies 103 - - - Market Cap (US$ mm) 74,460.8 67.2 30,629.6 1.2 Revenue (US$ mm) 23,139.7 56.0 3,057.7 0.0 1 Year revenue growth 2.5% 8961.6% -100.0% EBITDA as % of revenue - 11.3% 63.1% -99.5% Net cash (US$ mm) 9,273.3 3.3 1,841.1 -670.8 TEV/Revenue - 1.9x 47.4x 0.1x TEV/EBITDA - 8.5x 45.6x 0.5x P/E - 15.3x 90.4x 0.0x Relative to 52 week high -42.9% -4.1% -95.6% Source: CapitalIQ 4 www.mackieresearch.com
  • 5 0 5 10 15 20 25 30 Gaming 28 Social Networking 18 Media 10 9 Diversified 5 Mobile 5 Marketing 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 Search 1 Podcasting 1 Learning 1 Video 1 Collaboration 1 Payment 1 Financial Services Public Company Distribution 0 5 10 15 20 25 30 35 40 45 50 United States Canada China South Korea Japan Taiwan Hong Kong Germany Poland Australia United Kingdom By Country Italy Finland Sweden India Russia Malaysia Switzerland www.mackieresearch.com
  • Valuation Dashboard – 1 Week Market Cap EV/Revenue Flat 12% Flat 1% Rising Falling 27% 64% Rising 35% Falling 61% EV/EBITDA P/E Flat Flat 0% 0% Rising 35% Rising 44% Falling 56% Falling 65% 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 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 Median EV/Revenue 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 Median 11/16/2009 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 Long-term average 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 average 3/29/2010 4/5/2010 well below LT 4/12/2010 4/19/2010 down slightly, still Revenue multiples 4/26/2010 5/3/2010 5/10/2010 5/17/2010 5/24/2010 5/31/2010 6/7/2010 6/14/2010 6/21/2010 6/28/2010 373839404040404042444545464646474850515150545556616161626666666565667070707073727167707271767477767979797978807981838283 www.mackieresearch.com
  • 8 Source: CapitalIQ Multiple (x ) # companies 0. 0x 5. 0x 10. 0x 15. 0x 20. 0x 25. 0x 30. 0x 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 Median EV/EBITDA 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 Median 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 Long-term average 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 5/3/2010 5/10/2010 EV/EBITDA multiples down, depressed below LT average 5/17/2010 5/24/2010 5/31/2010 6/7/2010 6/14/2010 6/21/2010 6/28/2010 7/5/2010 18 20 21 22 22 21 21 21 23 22 25 22 23 23 25 26 26 25 24 24 25 27 28 29 32 34 34 36 39 37 38 39 38 40 41 38 38 38 42 41 40 42 41 41 42 43 44 44 44 47 49 48 50 51 51 49 50 48 47 49 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 5/18/2009 5/25/2009 6/1/2009 Median P/E 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 Median 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 Long-term average 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 and below LT average 4/26/2010 P/E multiples also down 5/3/2010 5/10/2010 5/17/2010 5/24/2010 5/31/2010 6/7/2010 6/14/2010 6/21/2010 6/28/2010 7/5/2010 19 19 18 18 19 18 19 18 20 20 20 18 19 19 19 20 21 24 23 23 24 25 27 26 30 31 32 31 33 32 34 36 37 39 39 38 39 39 40 41 38 39 39 40 37 37 35 33 33 32 35 35 36 35 35 37 35 32 34 33 www.mackieresearch.com
  • 10 - 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 # Companies 2 Infrastructure 13.4 1 Virtual World 11.9 7 Diversified 9.9 1 Learning 9.4 8 Social Networking 5.3 4 Mobile 5.0 2 Music 4.4 4 Marketing 4.3 1 Vertical Communities 3.7 1 Search 3.6 Gaming 21 3.3 3 SMS/Voice 3.2 Average EV/Revenue – by Sector 1 Podcasting 2.8 1 Collaboration 2.4 3 Advertising 2.2 9 Media 2.2 2 Internet Retail 1.9 3 Enterprise 1.6 1 Video 1.5 2 Dating 1.3 1 Financial Services 0.3 www.mackieresearch.com
  • Average EV/EBITDA – by Sector 50.0 45.6 45.0 40.0 38.5 35.0 30.0 25.0 20.0 17.7 15.8 15.0 11.5 11.3 11.2 10.9 10.0 8.9 8.7 6.8 5.0 - Diversified Financial Services Internet Retail Search Mobile Enterprise Gaming Social Networking Media Collaboration Marketing # Companies 1 1 3 2 14 5 6 2 6 1 2 11 www.mackieresearch.com
  • Average P/E – by Sector 100.0 90.0 87.8 80.0 70.0 60.0 53.6 50.0 40.0 37.9 33.8 30.0 26.2 18.9 20.0 15.3 12.9 12.5 10.0 - Internet Retail Enterprise Collaboration Diversified Social Marketing Advertising Gaming Media Networking 2 3 1 9 18 5 3 28 10 # Companies 12 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 NeXplore C orporation 47 Source: CapitalIQ 26 S pectrumDNA, Inc. 25 S oc ialG O P L C 16 T enc ent Holdings Ltd. 15 G eoS entric O yj 13 P aid Inc. 12 Worlds . com Inc. G ree, Inc. B ey ond C ommerc e, Inc. 11 11 10 MO K O .mobi Limited Lingo Media C orporation 9 9 C hines e G amer International T rans G aming, Inc. DigitalP os t Interac tiv e, Inc. 8 7 7 F luid Mus ic C anada, Inc. 7 Dena C o. Ltd. H U G HE S T elematics , Inc . 5 5 Acc eleriz e New Media, Inc . Mix i, Inc. 5 4 C hangy ou.c om L imited WebMediaB rands Inc S K C ommunic ations C o., Ltd. F rogs ter Interactive P ictures AG 4 4 4 3 T aleo C orp. Motricity, Inc. Wiz z ard S oftware C orporation K ings oft C orporation L imited is eemedia Inc. EV/Revenue Ranking 3 3 3 2 2 O pen T ex t C orp. eP ro Ltd. Modern T imes G roup Mtg AB NE O WIZ G ames C orporation XING AG S ohu. com Inc. S core Media Inc. V elti P lc S hutterfly , Inc . UO MO Media, Inc P NI Digital Media Inc. G ungHo O nline E ntertainment, Inc. My riad G roup AG V alueC lic k , Inc. P latforma Mediowa P oint G roup S .A. HanbitS oft, Inc . Unilava C orporation Webz en Inc . NeuLion Incorporated Y D O nline C orp. NeXplore has highest revenue multiple at 47x 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 G amania Digital E ntertainment C o. , L td. S park Network s , Inc. Hutc his on T elec ommunic ations Hong K ong H oldings L td. S NAP Interac tiv e, Inc. Y nk K orea Inc . O riented Media G roup B erhad NetDragon WebS oft, Inc. AQ Interac tiv e, Inc. Internet G roup S A O AO R B C Information S y s tems P oints International Ltd. T he New Y ork T imes C ompany T heS treet.c om, Inc. Northgate T ec hnologies L imited U nis erv e C ommunications C orp. DADA S pA IAC /InterActiveC orp. U nited O nline, Inc. C DC C orp. AO L, Inc . G igaMedia Ltd. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 G lu Mobile, Inc. C yberplex Inc. T ree.C om, Inc. Ac toz S oft C o., L td. O penwav e S y s tems Inc . G ameO n C o Ltd. J umbuck E ntertainment Limited R ealNetwork s Inc. As k net AG Y ippy , Inc . 0 0 0 0 0 0 0 0 0 0 Mobile Data C orp. www.mackieresearch.com
  • 14 0. 0 5. 0 10. 0 15. 0 20. 0 25. 0 30. 0 35. 0 40. 0 45. 0 50. 0 Source: CapitalIQ T ree. C om, Inc . 45.6 S K C ommunic ations C o. , Ltd. 38. 5 HanbitS oft, Inc . 37. 0 T enc ent Holdings Ltd. 30.7 Motric ity , Inc . T aleo C orp. 25.825.8 F rogs ter Interac tive P ic tures AG 22.2 Mix i, Inc . G ree, Inc . C hines e G amer International 19. 018. 718. 3 My riad G roup AG 16.9 AQ Interac tive, Inc . Modern T imes G roup Mtg AB 15.615.5 S hutterfly , Inc . EV/EBITDA Ranking Dena C o. Ltd. T heS treet. c om, Inc . 14. 213. 813. 8 S c ore Media Inc . Y D O nline C orp. 12.411.8 O penwave S y s tems Inc . 10.4 P latforma Mediowa P oint G roup S .A. at 45.6x O pen T ex t C orp. IAC /InterAc tiveC orp. 9.5 8.7 8.6 G amania Digital E ntertainment C o., Ltd. DADA S pA XING AG Tree.com leads the group G ungHo O nline E ntertainment, Inc . P NI Digital Media Inc . V elti P lc 8. 5 8. 3 8. 1 7.8 7.6 7.6 NE O WIZ G ames C orporation Unis erve C ommunic ations C orp. N etDragon WebS oft, Inc . S park Network s , Inc . 7.5 7. 3 6. 9 6.8 C hangy ou. c om Limited K ings oft C orporation Limited V alueC lic k , Inc . C DC C orp. 6.5 6.2 6.1 5. 9 Hutc his on T elec ommunic ations Hong K ong Holdings Ltd. T he New Y ork T imes C ompany S ohu.c om Inc . 5. 4 4.9 4.6 C y berplex Inc . 4.4 United O nline, Inc . 3.5 AO L, Inc . Ac toz S oft C o., Ltd. 2. 0 1. 9 G ameO n C o Ltd. 1. 0 www.mackieresearch.com Excluding EV/EBITDA > 100x
  • 15 Source: CapitalIQ 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 eP ro Ltd. 90.4 S hutterfly , Inc. 87.8 P oints International Ltd. Mix i, Inc . 58.2 56. 5 P/E Ranking C DC C orp. 49. 1 T enc ent H oldings Ltd. 41. 0 O pen T ex t C orp. G ree, Inc . 37. 9 36. 4 NetDragon W ebS oft, Inc . G amania Digita l E ntertainment C o., Ltd. Dena C o. Ltd. 31. 4 30.7 29.7 F rogs ter Intera ctive P ictures AG C hines e G amer Internationa l 25.3 24.7 V elti P lc 23.5 NE O W IZ G ames C orporation Hutc his on T elec ommunications H ong K ong H oldings Ltd. P/E at 90.4x 17.6 16.8 C y berplex Inc . ePro has the highest V alueC lic k , Inc. T he New Y ork T imes C ompany 15.3 14.3 14.2 DADA S pA S ohu.com Inc . K ings oft C orpora tion L imited 13.0 12.9 11.3 AO L , Inc. C hangy ou. com L imited 10.4 9.5 G ameO n C o Ltd. 9.3 U nited O nline, Inc . 8.0 Unis erve C ommunic ations C orp. 5.1 J umbuc k E ntertainment Limited 3.3 N etea s e.com Inc . 2.2 G iant Intera ctive G roup, Inc . 2.0 S ha nda Interac tive E ntertainment Ltd. 1.8 P erfec t World C o., Ltd. 1.1 www.mackieresearch.com
  • 16 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 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 Total Market Capitalization 12/14/2009 100 12/21/2009 12/28/2009 98 98 98 98 98 98 98 98 97 98 98 98 98 99 99 99 99 99 99 99100100 100100 1/4/2010 1/11/2010 100100 1/18/2010 1/25/2010 2/1/2010 100 2/8/2010 2/15/2010 100100 100100 2/22/2010 3/1/2010 101102 3/8/2010 3/15/2010 3/22/2010 102 Total market cap drops $1.8 bn to $74.5 bn 3/29/2010 4/5/2010 102102 102102 4/12/2010 4/19/2010 4/26/2010 102 5/3/2010 5/10/2010 102102 102102 5/17/2010 5/24/2010 102102 5/31/2010 6/7/2010 6/14/2010 102 6/21/2010 6/28/2010 102102 103103 7/5/2010 103 www.mackieresearch.com
  • 17 - # 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 9 Diversified Gaming 28 Media 10 Social Networking 18 1 Collaboration 3 Enterprise 5 Marketing 5 Mobile 2 Internet Retail 1 Search Total Market Cap – by Sector 2 Music 3 SMS/Voice 2 Dating 1 Financial Services 3 Advertising 1 Video 2 Virtual World $35 bn in market cap 1 Vertical Communities 1 Payment Nine Diversified companies totaling 3 Infrastructure 1 Learning 1 Podcasting www.mackieresearch.com
  • 18 0 1,000 2,000 3,000 4,000 5,000 6,000 Tencent Holdings Ltd. Netease.com Inc. Dena Co. Ltd. Gree, Inc. Source: CapitalIQ Modern Times Group Mtg AB IAC/InterActiveCorp. Shanda Interactive Entertainment Ltd. AOL, Inc. Open Text Corp. Giant Interactive Group, Inc. Sohu.com Inc. Changyou.com Limited The New York Times Company Perfect World Co., Ltd. Hutchison Telecommunications Hong Kong Holdings Taleo Corp. ValueClick, Inc. Mixi, Inc. Chinese Gamer International NEOWIZ Games Corporation Shutterfly, Inc. SK Communications Co., Ltd. Kingsoft Corporation Limited United Online, Inc. RealNetworks Inc. Motricity, Inc. Gamania Digital Entertainment Co., Ltd. GungHo Online Entertainment, Inc. NetDragon WebSoft, Inc. Velti Plc CDC Corp. Myriad Group AG XING AG Market Cap Ranking Openwave Systems Inc. Fluid Music Canada, Inc. OAO RBC Information Systems GigaMedia Ltd. The9 Limited AQ Interactive, Inc. Webzen Inc. HUGHES Telematics, Inc. TheStreet.com, Inc. Points International Ltd. HanbitSoft, Inc. GameOn Co Ltd. DADA SpA Actoz Soft Co., Ltd. Paid Inc. Frogster Interactive Pictures AG Tree.Com, Inc. Spark Networks, Inc. Score Media Inc. Yippy, Inc. YD Online Corp. Quepasa Corp. Moggle, Inc NeuLion Incorporated Platforma Mediowa Point Group S.A. PNI Digital Media Inc. Ngi Group Inc. Cyberplex Inc. Gravity Co., Ltd Accredited Members Holding Corporation Glu Mobile, Inc. GeoSentric Oyj TransGaming, Inc. dominates group DigitalTown, Inc. WebMediaBrands Inc ePro Ltd. Multiplied Media Corporation Socialwise, Inc. Asknet AG Tencent’s $30 bn market cap LookSmart, Ltd. Ynk Korea Inc. NeXplore Corporation YouBlast Global, Inc. Accelerize New Media, Inc. VOIS, Inc. Dolphin Digital Media, Inc. Lingo Media Corporation Wizzard Software Corporation Northgate Technologies Limited Unilava Corporation Jumbuck Entertainment Limited Internet Group SA iseemedia Inc. DigitalPost Interactive, Inc. Kent International Holdings Inc. MOKO.mobi Limited SocialGO PLC SNAP Interactive, Inc. Kiwibox.Com, Inc. Beyond Commerce, Inc. SpectrumDNA, Inc. IAS Energy, Inc. Oriented Media Group Berhad Uniserve Communications Corp. En2Go International, Inc. BroadWebAsia Inc. Worlds.com Inc. UOMO Media, Inc www.mackieresearch.com
  • Price Performance – 1 Week • Negative price momentum, with 62% of stocks falling over the past week. Price Momentum • Second consecutive week of >60% companies with falling prices Rising 26% Falling 62% Flat 12% 19 www.mackieresearch.com
  • Average Price Performance – 1 Week, by Sector 20.0% 10.0% Infrastructure sector shows 10.0% highest weekly returns 4.1% 2.6% 1.2% 0.4% 0.0% 0.0% 0.0% -0.6% -1.6% -1.8% -10.0% -5.5% -6.7% -6.8% -6.9% -7.5% -9.2% -9.3% -9.8% -11.0% -13.7% -20.0% -19.1% -30.0% -40.0% -37.4% Internet Retail Infrastructure Networking Collaboration Virtual World Financial Payment Communities Advertising Learning Music Mobile Podcasting Gaming Dating Enterprise Marketing Diversified Search Services SMS/Voice Media Video Social Vertical Source: CapitalIQ 20 www.mackieresearch.com
  • 21 -100.0% -80.0% -60.0% -40.0% -20.0% 0.0% 20.0% 40.0% 60.0% 80.0% WDDD BWBA ETGI IASC.A Source: CapitalIQ VOIS AIM:SGO TSX:NLN YIPI BYOC TSXV:USS MKB CHIN.A A066270 A052790 3765 3888 PAYD MOTR WEBM OPWV RBCI NYT A095660 TREE TSE:2432 TLEO LOV LOOK VCLK UOMO UNTD AOL 590057 TSX:FMN IACI SFLY STVI MTG B TSXV:PN RNWK KNTH SNDA SEHK:8086 VEL TSXV:MMC QPSA KOSE:A069 MYRN TSX:SCR Price Performance – 1 Week SOHU 777 SEHK:215 GA GRVY TSCM A047080 HUTC OTEX TSE:3632 6180 3812 O1BC CM:DA A052770 PWRD IEE TSXV:LM ASX:JMB KIWB DB:M0C UNLA OMEDIA MBYL WZE TSXV:TNG LVWD 700 2497 GTSM:3083 SCLW CYOU A023770 TSX:CX GLUU TSX:PTS NCTY XTRA:A5A WSE:IGR NTES FRG ACLZ WSE:PGM NXPC DGLP 3838 DGTW GIGM 2121 YBLT SPXA DPDM GEO1V ACCM www.mackieresearch.com
  • 22 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 0% 500% 1000% 1500% 2000% 2500% OAO RBC SNAP Information Interactive, Inc. Systems Yippy, Inc. ePro Ltd. Source: CapitalIQ Frogster Beyond Interactive Commerce, Inc. Pictures AG Uniserve AQ Interactive, Communications Inc. Corp. Quepasa Corp. Cyberplex Inc. 6 Month 1 Month Uniserve Points Communications International Ltd. Corp. Score Media Inc. HanbitSoft, Inc. Velti Plc DADA SpA SNAP Mixi, Inc. Interactive, Inc. Points AQ Interactive, International Ltd. Inc. Price Performance (Top 10) 0% 20% 40% 60% 80% 100% 120% 140% 0% 500% 1000% 1500% 2000% 2500% 3000% 3500% 4000% OAO RBC Information Yippy, Inc. Systems Beyond Yippy, Inc. Commerce, Inc. YouBlast Global, ePro Ltd. Inc. Quepasa ePro Ltd. Corp. AQ AQ Interactive, Interactive, Inc. Inc. 1 Year 3 Month SK Velti Plc Communications Co., Ltd. Fluid Music DigitalTown, Inc. Canada, Inc. Points Dena Co. Ltd. International Ltd. TransGaming, Gree, Inc. Inc. Gree, Inc. Glu Mobile, Inc. www.mackieresearch.com
  • 23 -80.0% -70.0% -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% Uniserve NeXplore Communications Corporation Corp. Beyond Lingo Media Source: CapitalIQ Commerce, Inc. Corporation SpectrumDNA, Yippy, Inc. Inc. NeuLion VOIS, Inc. Incorporated MOKO.mobi SocialGO PLC Limited 1 Week 6 Month UOMO Media, VOIS, Inc. Inc Worlds.com IAS Energy, Inc. Inc. Unilava BroadWebAsia Corporation Inc. En2Go En2Go International, International, Inc. Inc. BroadWebAsia Worlds.com 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% SocialGO PLC Moggle, Inc Mobile Data Actoz Soft Corp. Co., Ltd. LookSmart, IAS Energy, Ltd. Inc. Accredited Members SpectrumDNA, Holding Inc. Corporation Worlds.com VOIS, Inc. Inc. 1 Year 1 Month Beyond Beyond Commerce, Commerce, Inc. Inc. En2Go YouBlast International, Global, Inc. Inc. UOMO Media, BroadWebAsia Inc Inc. En2Go Unilava International, Corporation Inc. BroadWebAsia Worlds.com Inc. Inc. www.mackieresearch.com
  • Capital Market Activity (Financing, M&A) 24 www.mackieresearch.com
  • Financing Activity – Current Month C ompany Name C ountry S ec tor Ac quis ition NA G rand Total ITA S oftware US A S earch 700. 0 700. 0 infoG R OUP US A Advertis ing 644. 9 644. 9 OC TANE 360 US A Advertis ing 10. 9 10. 9 G roupS pac es UK V ertical C ommunities 1. 3 1. 3 1355.8 1.3 1357.1 25 www.mackieresearch.com
  • Financing Activity – Current Month, by Sector $ Raised # Deals Vertical Advertising Other Communities 1% 0% 0% Vertical Communities Search 33% 34% Search Other 49% 50% Advertising 33% 26 www.mackieresearch.com
  • Financing Activity After huge June, July starts very slowly 1000.0 16.0 900.0 13.7 14.0 800.0 12.2 12.0 700.0 10.3 9.6 10.0 600.0 8.8 8.4 (US$m) (US$m) 500.0 7.6 8.0 6.3 6.4 400.0 5.4 5.7 5.5 6.0 300.0 4.0 200.0 1.3 2.0 100.0 0.0 0.0 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 *Dec-09 includes $180m Zynga investment Apr-10 includes $300m DST investment Total Average per Deal LTM Total Average** **Excludes Dec-09, Apr- Jun-10 includes $147m Zynga investment 10 27 www.mackieresearch.com
  • 28 (US$m) 0.0 100.0 200.0 300.0 400.0 500.0 600.0 700.0 800.0 900.0 # companies Advertising 20 5 Search Gaming 12 6 Media Analytics 10 5 Internet Retail 3 Collaboration Mobile 10 5 Virtual World 6 Social Commerce 6 Vertical Communities 6 Social Networks 3 Location-based SNS 4 Video 2 Mobile Ad 2 Comment/Reputation 1 $810 mm) SMS/Voice 2 Virtual Goods area of interest in the Advertising the biggest 3 past 3 months(20 deals, Enterprise 3 Financial Services 4 Infrastructure 3 Aggregation 1 Widget 1 Music 3 Travel 1 Publishing 1 Microblog Capital Market Activity Ranking – by Sector, last three months 1 Online Learning Crowdsourced 1 Content www.mackieresearch.com
  • 29 (US$ 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 Dec-08 Social Networks Jan-09 Feb-09 Gaming Mar-09 Apr-09 $ Raised May-09 Advertising Jun-09 Jul-09 Video Aug-09 Sep-09 Oct-09 Nov-09 Virtual World Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 No deals in top 5 sectors in July 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 Mar-09 Advertising Apr-09 May-09 Gaming Jun-09 # Deals Jul-09 Aug-09 Sep-09 Virtual World Oct-09 Nov-09 Video Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Top 5 sectors average $170 mm & 15 deals per month (aggregate) Jun-10 Jul-10 www.mackieresearch.com
  • Top 10 Deals (2010 YTD) Financing Acquisitions 350.0 800 700.0 300.0 700 300.0 644.9 600 250.0 500 200.0 400 147.0 150.0 135.0 300 225.0 187.5 100.0 200 160.0 142.0 126.5 100.0 100 80.0 75.0 50.0 50.0 44.0 50.0 40.0 35.0 33.0 31.0 0 Ankeena Networks Alloy ITA Software Turbine infoGROUP Tsavo Media ICQ Mochi Media Jigsaw Siri 0.0 Technologies Zynga LivingSocial Playdom HauteLook Groupon Gilt Groupe Glam Media Tremor Media Qiyi Digital Sky Google acquisition of ITA ranks as biggest acquisition this year infoGROUP taken private in 2nd largest acquisition this year 30 www.mackieresearch.com
  • Upcoming Events/Earnings Company Date Time Quarter Conf Call Details Score Media (TSX:SCR) 14-Jul-10 16:00 PM (EST) Q3/10 NA The New York Times Company (NYSE:NYT) 22-Jul-10 11:00 AM (EST) Q2/10 888-293-6979 IAC/InterActiveCorp. (NasdaqGS:IACI) 28-Jul-10 11:00 AM (EST) Q2/10 NA Tree.Com, Inc. (NasdaqGM:TREE) 29-Jul-10 11:00 AM (EST) Q2/10 877-874-1588 Source: CapitalIQ 31 www.mackieresearch.com
  • Public Company Listing T rading C urre nt US $ Mark e t C om pany Nam e T ick e r Exchange C ur re ncy HQ Price C ap (m m ) Em ploye e s A ccelerize New M edia, Inc. ACLZ OTCBB USD United States 1 15.9 10 A ccredited M embers Holding Co rpo ratio n ACCM OTCBB USD United States 1 40.9 8 A cto z So ft Co ., Ltd. A052790 KOSE KRW So uth Ko rea 10,750 78.0 NA A OL, Inc. AOL NYSE USD United States 20 2,1 73.9 6,700 A Q Interactive, Inc. 3838 TSE JP Y Japan 173,000 107.2 NA A sknet AG XTRA :A 5A XTRA EUR Germany 3 20.7 NA B eyo nd Co mmerce, Inc. BYOC OTCBB USD United States 0 5.0 16 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 2 221 .8 NA Changyo u.co m Limited CYOU NasdaqGS USD China 27 1 .1 ,401 1,308 Chinese Gamer Internatio nal GTSM :3083 GTSM TWD Taiwan 271 722.8 NA Cyberplex Inc. TSX:CX TSX CA D Canada 1 44.3 NA DA DA SpA CM :DA CM EUR Italy 4 79.7 597 Dena Co . Ltd. TSE:2432 TSE JP Y Japan 2,371 3,938.6 NA DigitalPo st Interactive, Inc. DGLP OTCBB USD United States 0 6.6 6 DigitalTown, Inc. DGTW OTCBB USD United States 1 33.0 4 Do lphin Digital M edia, Inc. DP DM OTCBB USD United States 0 13.6 NA En2Go International, Inc. ETGI OTCBB USD United States 0 2.4 NA ePro Ltd. SEHK:8086 SEHK HKD Ho ng Ko ng 1 28.9 707 Fluid M usic Canada, Inc. TSX:FM N TSX CA D United States 2 1 62.1 NA Fro gster Interactive P ictures A G FRG XTRA EUR Germany 21 68.7 NA Gamania Digital Entertainment Co ., Ltd. 6180 GTSM TWD Taiwan 52 256.6 NA GameOn Co Ltd. 381 2 TSE JP Y Japan 75,400 83.1 NA Geo Sentric Oyj GEO1 V HLSE EUR Finland 0 33.7 120 Giant Interactive Gro up, Inc. GA NYSE USD China 7 1,565.3 1,575 GigaM edia Ltd. GIGM NasdaqGS USD Taiwan 2 128.4 NA Glu M o bile, Inc. GLUU NasdaqGM USD United States 1 39.8 479 Gravity Co ., Ltd GRVY NasdaqGM USD So uth Ko rea 2 41 .7 455 Gree, Inc. TSE:3632 TSE JP Y Japan 7,350 3,787.7 NA GungHo Online Entertainment, Inc. 3765 OSE JP Y Japan 187,200 244.7 NA HanbitSo ft, Inc. A047080 KOSE KRW So uth Ko rea 4,765 85.4 NA HUGHES Telematics, Inc. HUTC OTCBB USD United States 3 91 .0 276 Hutchison Teleco mmunicatio ns Ho ng Kong Ho ldings Ltd. SEHK:21 5 SEHK HKD Ho ng Ko ng 2 1,007.2 1,732 IA C/InterActiveCo rp. IA CI NasdaqGS USD United States 22 2,392.9 3,200 IA S Energy, Inc. IA SC.A OTCPK USD Canada 0 3.7 NA Internet Gro up SA WSE:IGR WSE P LN P o land 1 7.7 NA iseemedia Inc. IEE TSXV CA D Canada 0 7.1 NA 32 www.mackieresearch.com
  • Public Company Listing cont. T rading C urr e nt US $ Mark e t C om pany Nam e T ick e r Exc hange C ur re nc y HQ Price C ap (m m ) Em ploye e s Jumbuck Entertainment Limited A SX:JM B A SX A UD A ustralia 0 7.8 79 Kent Internatio nal Ho ldings Inc. KNTH OTCP K USD United States 2 6.6 NA Kingso ft Co rpo ratio n Limited 3888 SEHK HKD China 4 51 2.3 2,735 Kiwibo x.Co m, Inc. KIWB OTCB B USD United States 0 5.0 6 Lingo M edia Co rpo ratio n TSXV:LM TSXV CA D Canada 0 13.6 NA LiveWo rld Inc. LVWD OTCP K USD United States 0 1.2 NA Lo o kSmart, Ltd. LOOK NasdaqGM USD United States 1 20.1 65 M ixi, Inc. 2121 TSE JP Y Japan 476,000 838.5 NA M o bile Data Co rp. M B YL OTCB B USD United States 0 1.2 NA M o dern Times Gro up M tg A B M TG B OM SEK Sweden 418 3,576.8 2,936 M o ggle, Inc DB :M 0C DB EUR United States 1 49.7 2 M OKO.mo bi Limited M KB A SX A UD A ustralia 0 6.0 NA M o tricity, Inc. M OTR NasdaqGM USD United States 8 31 9.5 355 M ultiplied M edia Co rpo ratio n TSXV:M M C TSXV CA D Canada 0 27.0 NA M yriad Gro up A G M YRN SWX CHF Switzerland 4 195.7 778 NEOWIZ Games Co rpo ratio n A 095660 KOSE KRW So uth Ko rea 37,800 651 .9 NA NetDrago n WebSo ft, Inc. 777 SEHK HKD China 4 239.7 2,901 Netease.co m Inc. NTES NasdaqGS USD China 32 4,21 4.7 NA NeuLio n Inco rpo rated TSX:NLN TSX CA D Canada 0 48.8 224 NeXplo re Co rpo ratio n NXP C OTCP K USD United States 0 17.8 NA Ngi Gro up Inc. 2497 TSE JP Y Japan 32,350 45.7 NA No rthgate Techno lo gies Limited 590057 B SE INR India 17 12.4 NA OA O RB C Info rmatio n Systems RB CI M ICEX RUB Russia 34 145.2 2,523 Open Text Co rp. OTEX NasdaqGS USD Canada 37 2,1 20.7 3,700 Openwave Systems Inc. OP WV NasdaqGS USD United States 2 162.7 590 Oriented M edia Gro up B erhad OM EDIA KLSE M YR M alaysia 0 3.3 NA P aid Inc. P A YD OTCB B USD United States 0 71 .9 20 P erfect Wo rld Co ., Ltd. P WRD NasdaqGS USD China 22 11 ,1 5.9 2,896 P latfo rma M edio wa P o int Gro up S.A . WSE:P GM WSE P LN P o land 1 46.5 NA P NI Digital M edia Inc. TSXV:P N TSXV CA D Canada 1 46.3 NA P o ints Internatio nal Ltd. TSX:P TS TSX CA D Canada 1 88.5 93 Quepasa Co rp. QP SA OTCB B USD United States 4 51 .1 71 RealNetwo rks Inc. RNWK NasdaqGS USD United States 3 445.0 1,754 Sco re M edia Inc. TSX:SCR TSX CA D Canada 1 64.0 230 Shanda Interactive Entertainment Ltd. SNDA NasdaqGS USD China 38 2,251 .6 5,721 Shutterfly, Inc. SFLY NasdaqGS USD United States 24 640.2 51 9 33 www.mackieresearch.com
  • Public Company Listing cont. Trading C urrent US $ Market C ompany Name Tic ker E xc hange C urrency 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 17, 950 604.8 519 S NAP Interactive, Inc. STVI OT C B B US D United S tates 0 5. 6 NA S ocialG O P L C AIM: S G O AIM GBP United K ingdom 0 5. 6 15 S ocialwis e, Inc. S C LW OT C B B US D United S tates 1 25. 0 9 S ohu. com Inc. S O HU Nas daqG S US D C hina 41 1, 538.4 NA S park Network s , Inc. LOV AME X US D United S tates 3 66. 9 3,997 S pectrumDNA, Inc. S P XA OT C B B US D United S tates 0 4. 8 155 T aleo C orp. T LE O Nas daqG M US D United S tates 24 943.9 8 T encent Holdings L td. 700 S E HK HK D C hina 130 30, 629. 6 916 T he New Y ork T imes C ompany NY T NY S E US D United S tates 9 1, 237.6 7,845 T he9 L imited NC T Y Nas daqG S US D C hina 4 108.7 7,665 T heS treet.com, Inc. TS CM Nas daqG M US D United S tates 3 90. 2 1,010 T ra ns G aming, Inc. T S XV : T NG T S XV C AD C anada 1 33. 5 274 T ree.C om, Inc. TR E E Nas daqG M US D United S tates 6 67. 5 28 Unila va C orporation UNL A OT C B B US D United S tates 0 8. 0 700 Unis erve C ommunications C orp. T S XV : US S T S XV C AD C anada 0 3. 0 40 United O nline, Inc. UNT D Nas daqG S US D United S tates 6 486.2 NA UO MO Media, Inc UO MO OT C B B US D C anada 0 1. 3 1,699 V alueC lick , Inc. V C LK Nas daqG S US D United S tates 11 862.9 NA V elti P lc VEL AIM GBP United K ingdom 4 231.7 1,086 V O IS , Inc. V O IS OT C B B US D United S tates 0 14. 2 459 W ebMedia B rands Inc WEBM Nas daqG S US D United S tates 1 31. 4 2 W ebzen Inc. K O S E :A069080 K OS E KRW S outh K orea 10, 650 103.2 83 W izzard S oftware C orporation W ZE AME X US D United S tates 0 13. 2 326 W orlds . com Inc. W DDD OT C B B US D United S tates 0 1. 4 80 XING AG O 1B C XT R A E UR G erma ny 28 180.6 1 Y D O nline C orp. A052770 K OS E KRW S outh K orea 4, 460 54. 7 293 Y ippy, Inc. Y IP I OT C B B US D United S tates 3 63. 6 NA Y nk K orea Inc. A023770 K OS E KRW S outh K orea 2, 945 19. 2 NA Y ouB las t G lobal, Inc. Y B LT OT C B B US D United S tates 0 16. 2 NA 34 www.mackieresearch.com
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