Web 2.0 Weekly
                                     “Apple+Siri=Mobile Search Madness”
                                   ...
Key Developments (past week)
    Deals (M&A, Finance) – Apple Delves into Content, DST at It Again
     Siri (mobile perso...
Public Company Data




3                         www.mackieresearch.com
Aggregate Public Data

     Web 2.0 Public Companies   Total      Median    Max           Min
    # Companies             ...
5
                                                                      0
                                                ...
Valuation Dashboard – 1 Week
                     Market Cap                         EV/Revenue

                         ...
7
                         Source: CapitalIQ
                                                                             ...
8
                         Source: CapitalIQ
                                                                             ...
9
                         Source: CapitalIQ
                                                                             ...
10
                                                                      -
                                               ...
11
                                                                                                   0. 0
               ...
12
                                                                                                                      0...
Web 2.0 Weekly - May 4, 2010
Web 2.0 Weekly - May 4, 2010
Web 2.0 Weekly - May 4, 2010
Web 2.0 Weekly - May 4, 2010
Web 2.0 Weekly - May 4, 2010
Web 2.0 Weekly - May 4, 2010
Web 2.0 Weekly - May 4, 2010
Web 2.0 Weekly - May 4, 2010
Web 2.0 Weekly - May 4, 2010
Web 2.0 Weekly - May 4, 2010
Web 2.0 Weekly - May 4, 2010
Web 2.0 Weekly - May 4, 2010
Web 2.0 Weekly - May 4, 2010
Web 2.0 Weekly - May 4, 2010
Web 2.0 Weekly - May 4, 2010
Web 2.0 Weekly - May 4, 2010
Web 2.0 Weekly - May 4, 2010
Web 2.0 Weekly - May 4, 2010
Web 2.0 Weekly - May 4, 2010
Web 2.0 Weekly - May 4, 2010
Web 2.0 Weekly - May 4, 2010
Web 2.0 Weekly - May 4, 2010
Web 2.0 Weekly - May 4, 2010
Web 2.0 Weekly - May 4, 2010
Upcoming SlideShare
Loading in...5
×

Web 2.0 Weekly - May 4, 2010

683

Published on

April 2010 a record month for Web 2.0 Financing: Total transaction value (excluding M&A) in the Web 2.0 universe for April was $808.2 million - the highest monthly total we have recorded. The number of financings was also a record, at 48, averaging $16.8 million each. Note that this includes the $300 million investment in DST by Tencent. Excluding this transaction, the average is $9.6 million. In comparison, total capital raised in March was $168.1 million, averaging $5.4 million over 31 deals.

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

Tencent invested $300mm in DST (investor in Facebook, Zynga, Groupon).
Apple acquired Siri, a mobile local search developer for a rumoured $225 mm.
DST acquired ICQ, the instant messaging company, for $187.5 mm.
Warner Bros. acquired gaming company, Turbine, for $160 mm.
DST invested $135mm in social-shopping service Groupon.
Salesforce.com acquired crowd-sourced personal contact service, Jigsaw, for $142 mm.
Ankeena Networks, media infrastructure solution provider was acquired by Juniper for $100mm.

Bearish week: Price performance was largely negative in our Web 2.0 universe, with prices dropping for over 60% of the companies.

Published in: Economy & Finance
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
683
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
19
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Web 2.0 Weekly - May 4, 2010

  1. 1. Web 2.0 Weekly “Apple+Siri=Mobile Search Madness” May 4, 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
  2. 2. Key Developments (past week) Deals (M&A, Finance) – Apple Delves into Content, DST at It Again Siri (mobile personal assistant app developer) was acquired by Apple for a rumoured $225 mm – initiating a flurry of prognosticating over what this means for Apple – potentially building a mobile search business around its market leading mobile devices? DST, the Russian diversified Web and telecom concern, acquired instant messaging company, ICQ, for $187.5 mm. Tremor Media (online Hollywood media source) raised $40 mm in late-stage financing. Crowdsourced retail competitor to Groupon, LivingSocial, raised $14 mm – this following on the heels of Groupon’s $135 mm injection from DST. Financial Results/Guidance Open Text Corp. (NasdaqGS:OTEX) reported Q3/F10 revenue of $212.8 mm (vs. $192.0 mm in Q3/F09) and Adjusted EPS of $0.70 (vs. consensus: $0.74 and Q3/F09 of $0.59). Management noted its comfort with current Q4/F10 consensus estimates, which pegs Q4/F10 revenue expectations at $246-$278 mm. Sohu.com (NasdaqGS:SOHU) reported Q1/F10 revenue of $129.5 mm vs. $115.7 mm a year ago (+12% Y/Y), with $0.86/share non-GAAP EPS compared with $1.13/share in the same period last year. 2 www.mackieresearch.com
  3. 3. Public Company Data 3 www.mackieresearch.com
  4. 4. Aggregate Public Data Web 2.0 Public Companies Total Median Max Min # Companies 99 - - - Market Cap (US$ mm) 83,388.0 78.4 38,745.0 1.4 Revenue (US$ mm) 22,599.1 60.2 3,057.7 0.0 1 Year revenue growth 4.2% 857.0% -91.4% EBITDA as % of revenue - 13.4% 67.7% -75.0% Net cash (US$ mm) 8,523.1 1.8 1,754.4 -732.7 TEV/Revenue - 2.0x 46.4x 0.0x TEV/EBITDA - 9.0x 49.6x 0.1x P/E - 17.4x 96.9x 0.0x Relative to 52 week high -32.7% 1.9% -98.5% Source: CapitalIQ 4 www.mackieresearch.com
  5. 5. 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
  6. 6. Valuation Dashboard – 1 Week Market Cap EV/Revenue Flat Flat 12% 3% Rising 24% Falling Rising 46% 51% Falling 64% EV/EBITDA P/E Flat Flat 2% 0% Falling 41% Falling Rising 47% 51% Rising 59% 6 www.mackieresearch.com
  7. 7. 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 3/16/2009 3/23/2009 3/30/2009 4/6/2009 4/13/2009 4/20/2009 4/27/2009 5/4/2009 5/11/2009 5/18/2009 5/25/2009 6/1/2009 6/8/2009 6/15/2009 6/22/2009 6/29/2009 Median EV/Revenue 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 Median 9/21/2009 9/28/2009 10/5/2009 10/12/2009 10/19/2009 10/26/2009 11/2/2009 11/9/2009 11/16/2009 11/23/2009 Long-term average 11/30/2009 12/7/2009 12/14/2009 12/21/2009 12/28/2009 1/4/2010 1/11/2010 1/18/2010 1/25/2010 2/1/2010 2/8/2010 2/15/2010 recovering, but 2/22/2010 below LT Average Revenue multiples 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 383738394039403940424344444645444647484949485253545858585963636362636367676767706969647170707471747476787777777979808280 www.mackieresearch.com
  8. 8. 8 Source: CapitalIQ Multiple (x ) # companies 0. 0x 5. 0x 10. 0x 15. 0x 20. 0x 25. 0x 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/EBITDA 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 Median 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 Long-term average 12/7/2009 12/14/2009 12/21/2009 12/28/2009 1/4/2010 1/11/2010 1/18/2010 1/25/2010 2/1/2010 2/8/2010 below LT average 2/15/2010 remain depressed 2/22/2010 EV/EBITDA multiples 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 20 19 21 22 23 23 22 22 22 24 23 25 23 24 24 26 27 27 26 25 25 26 28 29 28 31 32 33 35 37 37 37 38 37 39 40 37 37 37 41 40 40 40 42 41 42 42 42 43 43 46 48 48 50 50 50 50 49 48 47 www.mackieresearch.com
  9. 9. 9 Source: CapitalIQ Multiple (x ) # companies 0. 0x 5. 0x 10. 0x 15. 0x 20. 0x 25. 0x 30. 0x 3/16/2009 3/23/2009 3/30/2009 Median P/E 4/6/2009 4/13/2009 4/20/2009 4/27/2009 5/4/2009 5/11/2009 5/18/2009 5/25/2009 6/1/2009 6/8/2009 6/15/2009 6/22/2009 6/29/2009 7/6/2009 7/13/2009 7/20/2009 7/27/2009 8/3/2009 8/10/2009 8/17/2009 8/24/2009 8/31/2009 9/7/2009 9/14/2009 Median 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 Long-term average 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 below LT average P/E multiples also 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 17 19 19 18 18 19 18 19 18 20 20 19 18 19 19 20 21 22 25 24 24 25 26 27 26 29 30 30 28 32 31 30 34 35 37 37 36 37 37 37 39 36 37 37 38 36 36 35 31 31 31 33 33 34 33 33 34 33 32 34 www.mackieresearch.com
  10. 10. 10 - 5.0 10.0 15.0 20.0 25.0 # Companies 2 Infrastructure 3 SMS/Voice 7 Social Networking 1 Vertical Communities 2 Music 5 Diversified 1 Learning 4 Mobile 6 Marketing Gaming 21 1 Search 1 Podcasting EV/Revenue 9 Media 3 Advertising 1 Collaboration 1 Video 2 Internet Retail 3 Enterprise 2 Dating 1 Financial Services 1 Virtual World - 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 Average Valuation – By Sector # Companies 2 Mobile 2 Enterprise 5 Diversified 6 Media 2 Internet Retail Gaming 14 5 Social Networking 1 Collaboration EV/EBITDA 1 Financial Services 3 Marketing 1 Dating 1 Advertising Vertical 0 Communities www.mackieresearch.com
  11. 11. 11 0. 0 5. 0 10. 0 15. 0 20. 0 25. 0 30. 0 35. 0 40. 0 45. 0 50. 0 C yberplex Inc . As k net AG Ngi G roup Inc. J umbuck E ntertainment L imited Source: CapitalIQ T ree.C om, Inc . R ealNetwork s Inc . G ameO n C o L td. O penwav e S ys tems Inc. U nis erv e C ommunic ations C orp. Ac toz S oft C o. , L td. G igaMedia L td. G lu Mobile, Inc. Northgate T ec hnologies L imited DADA S pA AO L, Inc. P oints International L td. IAC /InterAc tiveC orp. 0.10.10.3 0.40.40.40.4 0.50.50.50.50.6 0.70.70.70.70.80.8 Internet G roup S A C DC C orp. T he New Y ork T imes C ompany U nited O nline, Inc. T heS treet. com, Inc. C ornerWorld C orporation AQ Interac tive, Inc . O AO R B C Information S y s tems infoG R O UP , Inc. EV/Revenue Ranking H anbitS oft, Inc. G amania Digital E ntertainment C o. , L td. Hutchis on T elec ommunications H ong K ong Y D O nline C orp. S park Network s , Inc . NetDragon WebS oft, Inc . Y nk K orea Inc. 0.80.90.90.91.0 1.2 1.2 1.3 1.3 1.4 1.4 1.5 1.5 1.5 1.7 1.7 V alueC lick , Inc . 1.8 S hutterfly, Inc . UO MO Media, Inc S core Media Inc . S NAP Interactiv e, Inc. XING AG P NI Digital Media Inc. V elti P lc Modern T imes G roup Mtg AB NeuL ion Incorporated O riented Media G roup B erhad S ohu. c om Inc . Webz en Inc. G ungH o O nline E ntertainment, Inc. Myriad G roup AG O pen T ex t C orp. 2.02.0 2.12.22.2 2.32.32.42.4 2.52.6 2.72.72.7 F rogs ter Interactiv e P ictures AG is eemedia Inc . Wiz z ard S oftware C orporation NE O WIZ G ames C orporation S K C ommunications C o. , L td. 3.0 3.23.2 3.43.4 4.0 T aleo C orp. Lingo Media C orporation revenue multiple at 46.4x SpectrumDNA has highest DigitalP os t Interac tive, Inc . C hangy ou.c om L imited 4.9 5.0 5.1 5.4 K ings oft C orporation L imited Acc eleriz e New Media, Inc . WebMediaB rands Inc 5.6 5.7 5.7 Unilava C orporation 6.3 Mix i, Inc . 7.5 G ree, Inc . F luid Mus ic C anada, Inc . 9.1 H U G HE S T elematic s , Inc. T rans G aming, Inc . 11.211.5 C hines e G amer International 13.6 B eyond C ommerce, Inc . 14.3 G eoS entric O yj 15.4 MO K O .mobi L imited 18.2 P aid Inc . 19.2 T encent H oldings L td. 23.3 B right T hings plc 27.8 S pectrumDNA, Inc. 46.4 www.mackieresearch.com
  12. 12. 12 0.0 10.0 20.0 30.0 40.0 50.0 60.0 G ameO n C o L td. AO L , Inc . Source: CapitalIQ Ac toz S oft C o., L td. 1. 9 2.2 2. 4 United O nline, Inc . T he New Y ork T imes C ompany H utc his on T elec ommunications H ong K ong H oldings 4.5 5. 3 5.6 L td. V alueC lic k , Inc. S ohu.c om Inc. DADA S pA Y D O nline C orp. S park Network s , Inc. C DC C orp. 5. 9 6. 0 6. 6 6. 8 7.0 7. 2 infoG R O U P , Inc . EV/EBITDA Ranking G amania Digital E ntertainment C o., L td. C hangy ou.c om L imited XING AG NetDragon WebS oft, Inc. U nis erve C ommunic ations C orp. 7.5 7. 9 8.1 8. 1 8. 1 8. 9 P NI Digital Media Inc. T ree. C om, Inc. O pen T ex t C orp. IAC /InterAc tiveC orp. 9. 0 9.1 9. 7 9.8 V elti P lc G ungH o O nline E ntertainment, Inc . 11.1 12. 0 NE O WIZ G ames C orporation S c ore Media Inc. K ings oft C orporation L imited G ree, Inc. group at 49.6x S hutterfly , Inc. 12.6 12.9 12. 9 13.0 13. 7 Myriad Group leads the H anbitS oft, Inc . 14.5 Y nk K orea Inc . Modern T imes G roup Mtg AB 15. 9 16.6 O penwave S y s tems Inc . F rogs ter Interactive P ic tures AG 17. 5 18. 5 Mix i, Inc. 20. 9 C hines e G amer International 25. 2 T aleo C orp. 29.6 T heS treet.c om, Inc . 32. 4 T enc ent H oldings L td. 45.5 My riad G roup AG 49. 6 www.mackieresearch.com Excluding EV/EBITDA > 100x
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×