Web 2.0 Weekly - Apr. 20, 2010
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Web 2.0 Weekly - Apr. 20, 2010

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Highlighting key transactions in Web 2.0/Social Media. Provides valuation and price performance metrics and trends on ~100 public companies by sector.

Highlighting key transactions in Web 2.0/Social Media. Provides valuation and price performance metrics and trends on ~100 public companies by sector.

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Web 2.0 Weekly - Apr. 20, 2010 Web 2.0 Weekly - Apr. 20, 2010 Presentation Transcript

  • Web 2.0 Weekly “DST cashes up and then spends more” April 20, 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 Tencent (SEHK:700) invests $300mm in Digital Sky Technologies (investor in Facebook, Zynga etc.) DST invests $135mm in Groupon at $1.2b valuation Frogster Interactive Pictures AG (XTRA:FRG) reported revenue for 2009 rose 6x to Euro16.7mm with net profit of Euro2.3mm Webzen Inc. (KOSE: A069080) signed an agreement to acquire NHN Games Co., Ltd. for approximately KRW 240b The9 Limited (NasdaqGS:NCTY) reported consolidated earnings results for the fourth quarter and full year ended December 31, 2009. For the quarter, the company reported loss from operations of RMB 220.2mm on revenue of RMB22.5mm NetDragon WebSoft, Inc. (SEHK:777) announced unaudited consolidated earnings results for the fourth quarter ended December 31, 2009. For the quarter, the company reported operating profit of RMB 1,584,000 on revenues of RMB 134,190,000. 2 www.mackieresearch.com
  • Public Company Data 3 www.mackieresearch.com
  • Aggregate Public Data Web 2.0 Public Companies Total Median Max Min # Companies 98 - - - Market Cap (US$ mm) 81,864.6 76.0 37,060.2 1.7 Revenue (US$ mm) 90,908.6 22.7 67,563.7 0.0 1 Year revenue growth 4.3% 1178.9% -91.4% EBITDA as % of revenue - 5.9% 62.7% -91.9% Net cash (US$ mm) 9,008.8 1.5 1,754.9 -732.7 TEV/Revenue - 1.9x 46.6x 0.1x TEV/EBITDA - 8.7x 43.5x 0.1x P/E - 14.1x 92.7x 0.0x Relative to 52 week high -32.1% -1.9% -98.1% Source: CapitalIQ 4 www.mackieresearch.com
  • 5 0 5 10 15 20 25 30 Gaming 26 Social Networking 16 Media 10 6 Diversified 6 Marketing 5 Mobile Source: CapitalIQ 4 Advertising 3 Infrastructure 3 SMS/Voice 3 Enterprise 2 Internet Retail 2 Virtual World By Sector 2 Dating 2 Music 1 Vertical Communities 1 Collaboration 1 Podcasting 1 Search 1 Video 1 Learning 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 Poland Malaysia Russia By Country Finland Sweden Hong Kong India Italy Switzerland Israel www.mackieresearch.com
  • Valuation Dashboard – 1 Week Market Cap EV/Revenue Flat Flat 10% 4% Rising 38% Falling 43% Rising 53% Falling 52% EV/EBITDA P/E Flat Flat 5% 0% Falling Falling 43% 41% Rising Rising 54% 57% 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 3/2/2009 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 Median EV/Revenue 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 Median 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 Long-term average 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 1/25/2010 2/1/2010 recovering but 2/8/2010 below LT Average Revenue multiples 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 373837393939404039414142434444444445474848484750535356585761636364616162666868697168646870716873717475777575747678788280 www.mackieresearch.com
  • 8 Source: CapitalIQ Multiple (x) # companies 0.0x 5.0x 10.0x 15.0x 20.0x 25.0x 3/2/2009 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 Median EV/EBITDA 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 Median 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 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 below LT average remain depressed 2/1/2010 2/8/2010 EV/EBITDA multiples 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 2120 2022 22 2323 2222 2324 2322 2424 26 2626 2626 2526 2628 30 2830 3334 3640 3738 3638 39 3837 3740 4140 4041 41 4143 4243 4342 4848 4748 49 4947 4745 www.mackieresearch.com
  • 9 Source: CapitalIQ Multiple (x) # companies 0.0x 5.0x 10.0x 15.0x 20.0x 25.0x 30.0x 3/2/2009 3/9/2009 3/16/2009 Median P/E 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 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 Median 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 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 below LT average 2/8/2010 P/E multiples also 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 1719 2019 18 1818 1919 1920 1918 1919 19 2021 2425 2525 2526 26 2629 3030 2932 3132 3235 36 3636 3637 3839 3737 37 3635 3632 3130 3332 3232 32 3232 3130 www.mackieresearch.com
  • 10 - 5.0 10.0 15.0 20.0 25.0 # Companies 2 Infrastructure 3 SMS/Voice 7 Social Networking 4 Diversified 2 Music 1 Learning 5 Marketing 4 Mobile 1 Vertical Communities Gaming 20 1 Podcasting 1 Collaboration EV/Revenue 1 Search 1 Video 4 Advertising 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 Average Valuation – by Sector # Companies 1 Search 2 Enterprise 4 Diversified 1 Mobile 6 Media 1 Collaboration 2 Internet Retail 5 Social Networking EV/EBITDA 1 Financial Services Gaming 12 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 50.0 0.1 Perfect World Co., Ltd. Ngi Group Inc. Asknet AG Cyberplex Inc. Source: CapitalIQ RealNetworks Inc. Jumbuck Entertainment Limited Betawave Corporation Tree.Com, Inc. Uniserve Communications Corp. Actoz Soft Co., Ltd. Glu Mobile, Inc. GameOn Co Ltd. Points International Ltd. GigaMedia Ltd. Openwave Systems Inc. Northgate Technologies Limited DADA SpA Internet Group SA IAC/InterActiveCorp. TheStreet.com, Inc. AOL, Inc. 0.20.20.20.40.40.40.4 0.40.40.50.50.50.50.6 0.70.70.80.80.80.90.9 CDC Corp. United Online, Inc. CornerWorld Corporation AQ Interactive, Inc. The New York Times Company EV/Revenue Ranking OAO RBC Information Systems Beyond Commerce, Inc. Gamania Digital Entertainment Co., Ltd. infoGROUP, Inc. HanbitSoft, Inc. YD Online Corp. ValueClick, Inc. Spark Networks, Inc. NetDragon WebSoft, Inc. 0.9 1.0 1.0 1.0 1.2 1.2 1.2 1.3 1.3 1.5 1.6 1.6 1.6 1.7 Ynk Korea Inc. Shutterfly, Inc. Score Media Inc. SNAP Interactive, Inc. PNI Digital Media Inc. Velti Plc Modern Times Group Mtg AB NeuLion Incorporated XING AG Oriented Media Group Berhad UOMO Media, Inc 1.8 1.9 1.9 2.1 2.12.22.22.3 2.32.32.4 GungHo Online Entertainment, Inc. SK Communications Co., Ltd. Sohu.com Inc. Myriad Group AG Webzen Inc. Open Text Corp. iseemedia Inc. NEOWIZ Games Corporation revenue multiple 2.6 2.73.0 3.23.23.23.33.3 Wizzard Software Corporation Taleo Corp. Spectrum has highest DigitalPost Interactive, Inc. 4.1 4.5 4.7 WebMediaBrands Inc Kingsoft Corporation Limited Changyou.com Limited 5.4 5.45.5 Lingo Media Corporation Accelerize New Media, Inc. 6.0 6.4 Mixi, Inc. Frogster Interactive Pictures AG 7.8 8.4 Unilava Corporation HUGHES Telematics, Inc. Fluid Music Canada, Inc. 9.39.4 9.9 Gree, Inc. Chinese Gamer International 12.4 15.4 GeoSentric Oyj Paid Inc. 20.0 MOKO.mobi Limited 20.6 Tencent Holdings Ltd. 22.2 Bright Things plc 31.4 SpectrumDNA, Inc. 46.6 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 Perfect World Co., Ltd. Jumbuck Entertainment Limited 0.1 0.9 Source: CapitalIQ GameOn Co Ltd. Actoz Soft Co., Ltd. Cyberplex Inc. AOL, Inc. 2.1 2.2 2.3 2.6 United Online, Inc. 4.5 ValueClick, Inc. Sohu.com Inc. 5.7 6.2 YD Online Corp. Gamania Digital Entertainment Co., Ltd. DADA SpA infoGROUP, Inc. EV/EBITDA Ranking Spark Networks, Inc. The New York Times Company CDC Corp. 6.9 7.1 7.2 7.5 7.5 7.8 Uniserve Communications Corp. XING AG PNI Digital Media Inc. Changyou.com Limited NetDragon WebSoft, Inc. 7.9 8.2 8.4 8.4 8.6 8.7 Tree.Com, Inc. Velti Plc 9.7 10.3 GungHo Online Entertainment, Inc. 10.7 Open Text Corp. NEOWIZ Games Corporation 11.8 12.1 Kingsoft Corporation Limited Score Media Inc. 12.8 13.4 Shutterfly, Inc. Tencent has highest valuation IAC/InterActiveCorp. Openwave Systems Inc. 13.9 14.0 14.0 Ynk Korea Inc. Modern Times Group Mtg AB Gree, Inc. 16.5 16.6 16.8 Mixi, Inc. 21.3 Chinese Gamer International 22.9 TheStreet.com, Inc. 28.9 Taleo Corp. 31.6 SK Communications Co., Ltd. 39.6 Tencent Holdings Ltd. 43.5 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 90.0 100.0 Source: CapitalIQ Perfect World Co., Ltd. 1.8 Shanda Interactive Entertainment Ltd. 1.9 Giant Interactive Group, Inc. 2.1 Netease.com Inc. 2.5 P/E Ranking Jumbuck Entertainment Limited 4.4 Cyberplex Inc. 6.3 GigaMedia Ltd. 6.4 YD Online Corp. 8.3 United Online, Inc. DADA SpA AOL, Inc. Changyou.com Limited GameOn Co Ltd. 10.5 11.2 11.5 11.6 11.9 Sohu.com Inc. ValueClick, Inc. 14.0 14.3 Kingsoft Corporation Limited 18.2 CDC Corp. Velti Plc P/E 20.4 20.9 Gamania Digital Entertainment Co., Ltd. 22.4 NetDragon WebSoft, Inc. 26.1 Actoz has highest Chinese Gamer International 29.8 Gree, Inc. 33.2 NEOWIZ Games Corporation 35.6 Open Text Corp. 40.4 Tencent Holdings Ltd. Mixi, Inc. 56.4 56.6 GungHo Online Entertainment, Inc. 61.2 HanbitSoft, Inc. 88.1 Actoz Soft Co., Ltd. 92.7 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 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 10/5/2009 10/12/2009 10/19/2009 10/26/2009 11/2/2009 11/9/2009 11/16/2009 11/23/2009 Total Market Capitalization - $80B 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 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 94 94 94 94 93 94 94 94 94 94 94 94 94 94 94 94 94 94 94 93 94 94 94 94 94 94 94 94 94 95 95 97 97 97 97 97 97 97 97 97 97 97 97 98 98 98 98 98 98 98 98 98 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 6 Diversified Gaming 26 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 2 Music 1 Financial Services 2 Dating 2 Virtual World 1 Video 4 Advertising over $17b in market cap 1 Vertical Communities 26 Gaming companies totaling 1 Payment 3 Infrastructure 1 Podcasting 1 Learning www.mackieresearch.com
  • 16 0 1,000 2,000 3,000 4,000 5,000 6,000 BroadWebAsia Inc. UOMO Media, Inc CornerWorld Corporation Uniserve Communications Corp. Source: CapitalIQ Mobile Data Corp. Betawave Corporation Beyond Commerce, Inc. DigitalPost Interactive, Inc. En2Go International, Inc. Kiwibox.Com, Inc. Worlds.com Inc. Kent International Holdings Inc. SpectrumDNA, Inc. Real Value Estates, Inc. Oriented Media Group Berhad Bright Things plc Sahara Media Holdings, Inc. SNAP Interactive, Inc. Lingo Media Corporation iseemedia Inc. VOIS, Inc. MOKO.mobi Limited Jumbuck Entertainment Limited IAS Energy, Inc. Internet Group SA Northgate Technologies Limited Wizzard Software Corporation Accelerize New Media, Inc. LookSmart, Ltd. Dolphin Digital Media, Inc. Ynk Korea Inc. Asknet AG Market Cap Ranking NeXplore Corporation Socialwise, Inc. Glu Mobile, Inc. WebMediaBrands Inc Multiplied Media Corporation Unilava Corporation Cyberplex Inc. GeoSentric Oyj DigitalTown, Inc. Quepasa Corp. PNI Digital Media Inc. Gravity Co., Ltd Score Media Inc. Points International Ltd. Frogster Interactive Pictures AG Ngi Group Inc. NeuLion Incorporated Spark Networks, Inc. Moggle, Inc YD Online Corp. AQ Interactive, Inc. HanbitSoft, Inc. Paid Inc. Tree.Com, Inc. Fluid Music Canada, Inc. DADA SpA Actoz Soft Co., Ltd. GameOn Co Ltd. TheStreet.com, Inc. Webzen Inc. GigaMedia Ltd. The9 Limited Velti Plc Myriad Group AG XING AG OAO RBC Information Systems Openwave Systems Inc. Gamania Digital Entertainment Co., dominates group HUGHES Telematics, Inc. NetDragon WebSoft, Inc. CDC Corp. GungHo Online Entertainment, Inc. infoGROUP, Inc. Tencent’s $37b market cap SK Communications Co., Ltd. RealNetworks Inc. Shutterfly, Inc. United Online, Inc. NEOWIZ Games Corporation ValueClick, Inc. Kingsoft Corporation Limited Chinese Gamer International Mixi, Inc. Taleo Corp. Changyou.com Limited Perfect World Co., Ltd. The New York Times Company Giant Interactive Group, Inc. Sohu.com Inc. Open Text Corp. Gree, Inc. IAC/InterActiveCorp. AOL, Inc. Shanda Interactive Entertainment Ltd. Modern Times Group Mtg AB Netease.com Inc. Tencent Holdings Ltd. www.mackieresearch.com
  • Price Performance – 1 week • Negative momentum with 61% of stocks falling or flat over past week Price Momentum Falling 48% Rising Flat 39% 13% 17 www.mackieresearch.com
  • Average Price Performance – 1 Week, By Sector 30.0% 25.0% Media shows biggest gains 20.0% 18.5% 15.0% 9.7% 10.0% 6.6% 5.0% 2.8% 2.4% 1.1% 0.3% 0.1% 0.0% 0.0% -0.4% -0.6% -5.0% -2.1% -2.4% -2.5% -3.3% -3.5% -3.7% -5.4% -10.0% -7.2% -11.2%-11.9% -15.0% -12.9% Internet Retail Infrastructure Collaboration Networking Virtual World Financial Payment Communities Learning Advertising Music Search Mobile Diversified Gaming Enterprise Marketing Podcasting Dating Services Media SMS/Voice Video Social Vertical # companies Source: CapitalIQ 18 www.mackieresearch.com
  • 19 -60.0% -40.0% -20.0% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% BWBA OMEDIA STVI IEE Source: CapitalIQ TSXV:USS SHHD WDDD UNLA GLUU SPXA CHIN.A RBCI DGLP UOMO PAYD CM:DA SOHU 3888 2497 GIGM 777 PWRD A052790 6180 GTSM:3083 SFLY FRG TSE:3632 590057 O1BC WZE AOL SCLW NCTY 700 GA TSCM NTES MYRN SNDA VCLK TSX:FMN RNWK 2121 MKB OTEX TSXV:PN Price Performance – 1 Week KIWB ASX:JMB BWAV GEO1V ETGI RVLU CWRL DB:M0C TSX:CX TSXV:LM TSXV:MMC VEL VOIS IUSA KNTH TREE XTRA:A5A LOV CYOU WSE:IGR AIM:BGT LOOK HUTC A095660 3838 A047080 WEBM MTG B IACI A023770 NXPC TLEO MBYL NYT UNTD TSX:PTS TSX:NLN TSX:SCR ACLZ QPSA GRVY KOSE:A069080 A066270 A052770 3812 DPDM 3765 OPWV DGTW IASC.A BYOC www.mackieresearch.com
  • 20 0% 20% 40% 60% 80% 100% 120% 140% 160% 0% 500% 1000% 1500% 2000% 2500% 3000% OAO RBC IAS Energy, Information Inc. Systems Beyond AQ Interactive, Commerce, Source: CapitalIQ Inc. Inc. DigitalTown, Quepasa Corp. Inc. Oriented Media GameOn Group Berhad Co Ltd. Dolphin SNAP Digital Interactive, Inc. Media, Inc. 6 Month 1 Month Internet VOIS, Inc. Group SA HanbitSoft, Ngi Group Inc. Inc. Betawave Quepasa Corporation Corp. SK Mobile Data Communications Corp. Co., Ltd. Openwave Velti Plc Systems Inc. Price Performance (Top 10) 0% 1000% 2000% 3000% 4000% 5000% 6000% 0% 500% 1000% 1500% 2000% 2500% 3000% 3500% OAO RBC OAO RBC Information Information Systems Systems Quepasa IAS Energy, Corp. Inc. DigitalPost Beyond Interactive, Commerce, Inc. Inc. Fluid Music Canada, Unilava Inc. Corporation AQ Interactive, SNAP Interactive, Inc. Inc. 1 Year 3 Month VOIS, Inc. Ngi Group Inc. Openwave AQ Interactive, Systems Inc. Inc. TheStreet.com, Velti Plc Inc. Tencent Worlds.com Holdings Inc. Ltd. Paid Inc. Quepasa Corp. 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% SpectrumDNA, DADA SpA Inc. Source: CapitalIQ Glu Mobile, Inc. GigaMedia Ltd. Wizzard Unilava Software Corporation Corporation Cyberplex Inc. Worlds.com Inc. Northgate Sahara Media Technologies Holdings, Inc. Limited 1 Week 6 Month Uniserve CornerWorld Communications Corporation Corp. En2Go International, iseemedia Inc. Inc. UOMO Media, SNAP Inc Interactive, Inc. BroadWebAsia Oriented Media Inc. Group Berhad 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% Wizzard Worlds.com Inc. Software Corporation Cyberplex Inc. GigaMedia Ltd. Northgate iseemedia Inc. Technologies Limited UOMO Media, Mobile Data Inc Corp. UOMO Media, SpectrumDNA, Inc Inc. 1 Year 1 Month CornerWorld Sahara Media Corporation Holdings, Inc. En2Go Uniserve International, Communications Inc. Corp. 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) 22 www.mackieresearch.com
  • 23 (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 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 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 Searchandise Com m erce USA Advertising 7.0 7.0 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 TellApart USA Analytics 4.8 4.8 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 Spredfast USA Analytics 1.6 1.6 FreshPlanet USA Gaming 1.5 1.5 NearVerse USA Location-based SNS 1.0 1.0 Zoom Safer USA Mobile 1.0 1.0 Kontagent USA Analytics 1.0 1.0 DIYSEO USA Search 1.0 1.0 MyLikes USA Advertising 0.6 0.6 Plyce France Location-based SNS 0.4 0.4 Apr-10 Total 4.0 300.0 23.1 30.2 286.7 26.6 670.5 24 www.mackieresearch.com
  • Financing activity – Current Month, By Sector # Deals $ Raised Travel 3% Mobile 3% Search Social Social Diversified Commerce 3% Commerce 3% 18% Location- 6% based SNS Media 6% 9% Micromedia 3% Financial Gaming Services 6% Diversified 6% 38% Media 15% Video Analytics 6% 9% Infrastructure 3% Advertising 12% Vertical Communities 6% Enterprise Social 6% Online Networks Other Learning 6% 29% 3% Collaboration 3% 25 www.mackieresearch.com
  • Financing Activity – last three months 800.0 25.0 $370mm excl DST, average $13.2m 21.6 700.0 20.0 600.0 500.0 15.0 12.8 12.5 (US$m) (US$m) 400.0 10.2 8.9 9.1 10.0 300.0 8.2 6.8 5.8 5.5 5.7 5.4 200.0 4.7 5.0 100.0 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 $300m DST investment 26 www.mackieresearch.com
  • 27 (US$m) 0.0 50.0 100.0 150.0 200.0 250.0 300.0 350.0 # companies 1 Diversified 6 Media 9 Video Social 3 Commerce Advertising 16 8 Search 7 Gaming Social 9 Networks Financial 7 Services 6 Mobile 2 Mobile Ad Crowdsourced 4 Content 2 Enterprise 5 Analytics Online 2 Learning 2 Internet Retail Vertical 5 Communities 2 Music Mobile 1 Payment 1 Collaboration Location- 4 based SNS Advertising has most deals in last 3 months 3 Virtual World 2 Microblog 3 Infrastructure 1 Widget 3 Travel 1 SMS/Voice Online 1 Calendar 1 Blog 1 Capital Market Activity Ranking – by Sector, last three months Micromedia 1 Online Dating 1 Aggregation www.mackieresearch.com
  • Top 10 Deals (2010 YTD) Financings Acquisitions 350.0 120 300.0 300.0 100 100 250.0 80 80 200.0 60 150.0 135.0 50 100.0 40 36.5 33 50.0 21 20 25.0 20 18 24.5 21.0 20.0 16.2 15.0 14.6 12.5 8 0.0 3 Technologies LendingClub Knewton Box.net Groupon BlackArrow Vidyo MokaFive Xobni Prosper.com Digital Sky 0 Ankeena Mochi Aardvark StudioNow Saf-T-Net C&C Red 5 Multicast AdMarvel NuConomy Networks Media Media Studios, Media Inc. DST involved in 2 largest deals YTD 28 www.mackieresearch.com
  • Upcoming events/earnings Company Date Time Quarter Conf Call Details Modern Times Group Mtg AB (OM:MTG B) 20-Apr-10 3:00 PM (CET) Q1/10 N/A Changyou.com Limited (NasdaqGS:CYOU) 26-Apr-10 7:00 AM (EDT) Q1/10 852-3002-1672 Sohu.com Inc. (NasdaqGS:SOHU) 26-Apr-10 8:30 AM (EDT) Q1/10 1-877-941-6009 Shutterfly, Inc. (NasdaqGS:SFLY) 28-Apr-10 2:00 PM (PDT) Q1/10 970-315-0490 Openw ave Systems Inc. (NasdaqGS:OPWV) 28-Apr-10 2:00 PM (PDT) Q3/10 877-941-1427 IAC/InterActiveCorp. (NasdaqGS:IACI) 28-Apr-10 11:00 a.m. EST Q1/10 http://w w w .iac.com/Investors 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 Source: CapitalIQ 29 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 0.59 18.0 NA A cto z So ft Co ., Ltd. A052790 KOSE KRW So uth Ko rea 13,200 104.1 NA A OL, Inc. AOL NYSE USD United States 27.09 2,886.0 6,700 A Q Interactive, Inc. 3838 TSE JP Y Japan 150,000 88.4 NA A sknet AG XTRA :A 5A XTRA EUR Germany 3.90 26.5 NA B etawave Co rporatio n BWA V OTCPK USD United States 0 2.6 NA B eyo nd Co mmerce, Inc. BYOC OTCBB USD United States 0.08 4.5 86 B right Things plc AIM :B GT A IM GB P United Kingdo m 0 6.8 9 B roadWebA sia Inc. BWB A OTCPK USD United States 0.02 1.7 46 CDC Co rp. CHIN.A NasdaqGS USD Ho ng Ko ng 3 303.5 NA Changyo u.co m Limited CYOU NasdaqGS USD China 32.50 1,675.9 1,308 Chinese Gamer Internatio nal GTSM :3083 GTSM TWD Taiwan 352 945.9 NA Co rnerWorld Co rpo ratio n CWRL OTCBB USD United States 0.02 1.9 16 Cyberplex Inc. TSX:CX TSX CA D Canada 1 46.4 NA DA DA SpA CM :DA CM EUR Italy 4.77 103.4 NA DigitalPo st Interactive, Inc. DGLP OTCBB USD United States 0 4.5 NA DigitalTown, Inc. DGTW OTCBB USD United States 1.80 49.3 3 Do lphin Digital M edia, Inc. DP DM OTCBB USD United States 0 21 .3 NA En2Go International, Inc. ETGI OTCBB USD United States 0.20 4.8 NA Fluid M usic Canada, Inc. TSX:FM N TSX CA D United States 2 102.3 NA Fro gster Interactive P ictures A G FRG XTRA EUR Germany 20.48 70.7 NA Gamania Digital Entertainment Co ., Ltd. 6180 GTSM TWD Taiwan 47 228.3 NA GameOn Co Ltd. 381 2 TSE JP Y Japan 102,000.00 106.9 NA Geo Sentric Oyj GEO1 V HLSE EUR Finland 0 48.4 NA Giant Interactive Gro up, Inc. GA NYSE USD China 7.85 1,780.5 NA GigaM edia Ltd. GIGM NasdaqGS USD Taiwan 3 162.5 751 Glu M o bile, Inc. GLUU NasdaqGM USD United States 1 .01 30.9 NA Gravity Co ., Ltd GRVY NasdaqGM USD So uth Ko rea 2 60.6 469 Gree, Inc. TSE:3632 TSE JP Y Japan 5,540.00 2,71 5.3 NA GungHo Online Entertainment, Inc. 3765 OSE JP Y Japan 254,1 00 31 6.0 NA HanbitSo ft, Inc. A047080 KOSE KRW So uth Ko rea 4,820.00 94.4 NA HUGHES Telematics, Inc. HUTC OTCBB USD United States 3 230.0 276 IA C/InterActiveCo rp. IA CI NasdaqGS USD United States 23.64 2,755.4 3,200 IA S Energy, Inc. IA SC.A OTCPK USD Canada 0 12.0 NA infoGROUP , Inc. IUSA NasdaqGS USD United States 8.00 463.2 3,146 Internet Gro up SA WSE:IGR WSE P LN P o land 1 13.2 NA iseemedia Inc. IEE TSXV CA D Canada 0.1 2 8.2 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 Jumbuck Entertainment Limited ASX:JM B A SX A UD A ustralia 0.25 1 .2 1 79 Kent Internatio nal Ho ldings Inc. KNTH OTCPK USD United States 1.81 6.4 NA Kingso ft Co rpo ratio n Limited 3888 SEHK HKD China 6.1 2 874.2 NA Kiwibox.Co m, Inc. KIWB OTCBB USD United States 0.01 4.9 NA Lingo M edia Co rpo ratio n TSXV:LM TSXV CA D Canada 0.65 8.0 NA Loo kSmart, Ltd. LOOK NasdaqGM USD United States 1.06 18.2 NA M ixi, Inc. 2121 TSE JP Y Japan 609,000.00 1,020.3 NA M o bile Data Co rp. M B YL OTCBB USD United States 0.08 2.0 NA M o dern Times Gro up M tg A B M TG B OM SEK Sweden 425.00 3,895.2 NA M o ggle, Inc DB :M 0C DB EUR United States 1.29 81 .2 2 M OKO.mo bi Limited M KB A SX A UD A ustralia 0.1 0 10.8 NA M ultiplied M edia Co rporatio n TSXV:M M C TSXV CA D Canada 0.1 9 42.5 NA M yriad Gro up AG M YRN SWX CHF Switzerland 4.1 6 189.8 405 NEOWIZ Games Co rporatio n A095660 KOSE KRW So uth Ko rea 38,800.00 731 .9 NA NetDrago n WebSo ft, Inc. 777 SEHK HKD China 4.32 294.2 NA Netease.co m Inc. NTES NasdaqGS USD China 35.1 6 4,554.0 NA NeuLio n Inco rpo rated TSX:NLN TSX CA D Canada 0.65 74.5 NA NeXplo re Corpo ratio n NXP C OTCPK USD United States 0.50 27.9 NA Ngi Gro up Inc. 2497 TSE JP Y Japan 53,1 00.00 71 .3 NA No rthgate Techno lo gies Limited 590057 B SE INR India 18.45 14.4 160 OA O RB C Info rmatio n Systems RB CI M ICEX RUB Russia 44.21 204.6 2,523 Open Text Co rp. OTEX NasdaqGS USD Canada 47.1 4 2,661 .7 3,700 Openwave Systems Inc. OP WV NasdaqGS USD United States 2.69 225.4 590 Oriented M edia Gro up B erhad OM EDIA KLSE M YR M alaysia 0.1 6 6.7 NA P aid Inc. PA YD OTCBB USD United States 0.36 95.5 20 P erfect Wo rld Co ., Ltd. PWRD NasdaqGS USD China 34.78 1,732.9 NA P NI Digital M edia Inc. TSXV:P N TSXV CA D Canada 1.72 56.9 NA P o ints Internatio nal Ltd. TSX:P TS TSX CA D Canada 0.45 66.2 NA Quepasa Co rp. QP SA OTCBB USD United States 4.1 5 53.8 71 Real Value Estates, Inc. RVLU OTCBB USD Israel 1.03 6.6 NA RealNetwo rks Inc. RNWK NasdaqGS USD United States 4.40 594.6 1,754 Sahara M edia Ho ldings, Inc. SHHD OTCBB USD United States 0.25 7.8 15 Sco re M edia Inc. TSX:SCR TSX CA D Canada 0.80 63.8 220 Shanda Interactive Entertainment Ltd. SNDA NasdaqGS USD China 44.05 2,962.6 NA Shutterfly, Inc. SFLY NasdaqGS USD United States 23.69 634.5 51 9 SK Communicatio ns Co ., Ltd. A066270 KOSE KRW So uth Ko rea 1 50.00 4,1 530.3 NA SNA P Interactive, Inc. STVI OTCBB USD United States 0.24 7.9 NA 31 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 So cialwise, Inc. SCLW OTCB B USD United States 0.58 28.1 NA So hu.co m Inc. SOHU NasdaqGS USD China 49.76 1,879.3 3,997 Spark Netwo rks, Inc. LOV A M EX USD United States 3.76 77.4 NA SpectrumDNA , Inc. SP XA OTCB B USD United States 0.10 6.5 7 Taleo Co rp. TLEO NasdaqGM USD United States 26.87 1,065.6 91 6 Tencent Ho ldings Ltd. 700 SEHK HKD China 157.30 37,060.2 7,51 5 The New Yo rk Times Co mpany NYT NYSE USD United States 1 1 2.1 1,762.6 7,665 The9 Limited NCTY NasdaqGS USD China 6.84 174.5 1,626 TheStreet.co m, Inc. TSCM NasdaqGM USD United States 3.61 1 3.9 1 NA Tree.Co m, Inc. TREE NasdaqGM USD United States 9.14 100.6 700 Unilava Co rpo ratio n UNLA OTCB B USD United States 0.44 44.0 39 Uniserve Co mmunicatio ns Co rp. TSXV:USS TSXV CA D Canada 0.08 1.9 NA United Online, Inc. UNTD NasdaqGS USD United States 8.11 702.0 1,699 UOM O M edia, Inc UOM O OTCB B USD Canada 0.02 1.7 NA ValueClick, Inc. VCLK NasdaqGS USD United States 10.09 820.5 1,086 Velti P lc VEL A IM GB P United Kingdo m 3.11 178.4 450 VOIS, Inc. VOIS OTCB B USD United States 0.01 9.0 2 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 13,450 142.6 NA Wizzard So ftware Co rpo ratio n WZE A M EX USD United States 0.24 15.9 NA Wo rlds.co m Inc. WDDD OTCB B USD United States 0.10 5.4 1 XING A G O1 C B XTRA EUR Germany 27.39 1 .5 91 NA YD Online Co rp. A 052770 KOSE KRW So uth Ko rea 6,240 83.8 NA Ynk Ko rea Inc. A 023770 KOSE KRW So uth Ko rea 3,230 23.0 NA 32 www.mackieresearch.com
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