June financing well ahead of average: Financing in the Web 2.0 universe in June was the third highest month (over the past 12) with total transaction value (excluding M&A) of $459.6 million from 51 transactions, averaging $9.0 million each - led by the $147 million Zynga financing. In comparison, total capital raised in June 2009 was $226.3 million, averaging $4.5 million over 50 deals. Excluding Dec 09 and Apr 10, the average monthly total is ~$260 million.
Deals (M&A, Finance)
Alloy, a provider of news and commentary concerning New Media, was acquired by ZelnickMedia for $127 mm.
Facebook’s implied valuation rose to $24 bn as Elevation Partners purchased 5 mm shares of the company for $120 mm in the secondary market.
Danish Skype competitor, Vopium, received $16.5 mm in financing from Indian financier, Raghuvinder Kataria.
Social networking software developer based in France, Pearltrees, raised $1.6 mm.
PapayaMobile, mobile application software company based in China, raised $4 mm.
Two Israeli mobile developers received funding this week, including Perfecto Mobile ($4 mm) and Snaptu ($6 mm).
Negative price performance
The Web 2.0 public company universe fell this week, with 68% of companies seeing their market cap fall vs. 25% rising and 7% flat.
2. Key Developments (past week)
Deals (M&A, Finance) – Worldwide Financings – World Cup Related?
Alloy, a provider of news and commentary concerning New Media, was acquired by
ZelnickMedia for $127 mm.
Facebook’s implied valuation rose to $24 bn as Elevation Partners purchased 5 mm
shares of the company for $120 mm in the secondary market.
Danish Skype competitor, Vopium, received $16.5 mm in financing from Indian
financier, Raghuvinder Kataria.
Social networking software developer based in France, Pearltrees, raised $1.6 mm.
PapayaMobile, mobile application software company based in China, raised $4 mm.
Two Israeli mobile developers received funding this week, including Perfecto Mobile ($4
mm) and Snaptu ($6 mm).
Financial Results/Guidance/Partnerships/Product
Multiplied Media (TSXV:MMC) announced the availability of local weather functionality
for the iPhone version of its Poynt local search mobile application.
2 www.mackieresearch.com
4. Aggregate Public Data
Web 2.0 Public Companies Total Median Max Min
# Companies 101 - - -
Market Cap (US$ mm) 76,167.1 73.3 30,613.7 1.2
Revenue (US$ mm) 23,488.2 56.7 3,057.7 0.0
1 Year revenue growth 5.7% 8961.6% -100.0%
EBITDA as % of revenue - 13.3% 63.1% -99.5%
Net cash (US$ mm) 9,046.6 2.3 1,836.0 -670.8
TEV/Revenue - 1.9x 47.4x 0.0x
TEV/EBITDA - 8.8x 49.3x 0.5x
P/E - 16.8x 94.5x 0.0x
Relative to 52 week high -40.9% -1.6% -95.6%
Source: CapitalIQ
4 www.mackieresearch.com
5. 5
0
5
10
15
20
25
30
Gaming
28
Social Networking
16
Media
10
8
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
Hong Kong
Germany
Poland
Australia
United Kingdom
By Country
Italy
Finland
Sweden
India
Russia
Malaysia
Switzerland
www.mackieresearch.com
10. 10
-
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
# Companies 1
Virtual World
36.3
2
Infrastructure
13.4
7
Diversified
9.9
1
Learning
8.4
8
Social Networking
5.3
2
Music
4.7
1
Vertical Communities
4.3
1
Search
4.2
Gaming
21
3.7
4
Mobile
3.5
3
SMS/Voice
3.3
6
Marketing
3.2
Average EV/Revenue – by Sector
1
Podcasting
2.8
3
Advertising
2.7
1
Collaboration
2.5
9
Media
2.3
2
Internet Retail
2.0
1
Video
1.9
3
Enterprise
1.8
2
Dating
1.4
1
Financial Services
0.4
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11. Average EV/EBITDA – by Sector
60.0
49.3
50.0
45.4
40.0
30.0
20.0 18.2
15.6
11.7 11.7 11.7 11.0
9.7 9.3 8.9
10.0
-
Diversified
Advertising
Financial Services
Internet Retail
Search
Enterprise
Mobile
Gaming
Social Networking
Media
Collaboration
# Companies 1 1 2 2 14 2 5 6 1 6 1
11 www.mackieresearch.com
12. Average P/E – by Sector
100.0
93.0
90.0
80.0
70.0
60.0 56.3
50.0
39.1
40.0
34.9
29.0
30.0
25.5
20.0
15.0
13.6 13.2
10.0
-
Internet Retail Enterprise Collaboration Diversified Marketing Social Advertising Media Gaming
Networking
2 3 1 8 6 16 3 10 28
# Companies
12 www.mackieresearch.com
13. 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
36
Worlds .com Inc.
33
S oc ialG O P L C
26
S pectrumDNA, Inc.
16
T encent H oldings Ltd.
13
P aid Inc.
G eoS entric O yj
B ey ond C ommerce, Inc .
11 11 11
G ree, Inc.
10
MO K O .mobi Limited
9
C hines e G amer International
8
Lingo Media C orporation
F luid Mus ic C anada, Inc .
DigitalP os t Interactive, Inc .
7 7 7
Dena C o. Ltd.
T rans G aming, Inc .
7 6
Ac celeriz e New Media, Inc.
5
HU G H E S T elematics , Inc .
WebMediaB rands Inc
S K C ommunications C o. , L td.
C hangy ou.c om Limited
4 4 4 4
T aleo C orp.
Mix i, Inc.
4 3
F rogs ter Interactiv e P ic tures AG
K ings oft C orporation L imited
Wiz z ard S oftware C orporation
3 3 3
is eemedia Inc.
O pen T ex t C orp.
EV/Revenue Ranking
NE O WIZ G ames C orporation
eP ro Ltd.
Modern T imes G roup Mtg AB
XING AG
G ungH o O nline E ntertainment, Inc .
S hutterfly, Inc.
S ohu.com Inc.
V elti P lc
S core Media Inc.
U O MO Media, Inc
P NI Digital Media Inc .
NeuLion Incorporated 2 2 2 2 2 2 2 2 2 2 2 2 2
V alueC lic k , Inc.
Myriad G roup AG
H anbitS oft, Inc.
Webz en Inc.
U nilav a C orporation
P latforma Mediowa P oint G roup S . A.
S park Network s , Inc.
Y D O nline C orp.
NeXplore has highest
revenue multiple at 47x
G amania Digital E ntertainment C o. , L td.
2 2 2 2 2 2 1 1 1 1
H utchis on T elec ommunic ations Hong
infoG R O U P , Inc .
S NAP Interac tiv e, Inc.
NetDragon WebS oft, Inc.
Y nk K orea Inc.
O riented Media G roup B erhad
C ornerWorld C orporation
O AO R B C Information S ys tems
Internet G roup S A
AQ Interac tiv e, Inc.
T he New Y ork T imes C ompany
C DC C orp.
T heS treet. com, Inc.
Northgate T echnologies Limited
IAC /InterAc tiv eC orp.
P oints International L td.
C yberplex Inc.
United O nline, Inc.
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
U nis erv e C ommunic ations C orp.
AO L, Inc.
DADA S pA
G lu Mobile, Inc.
G igaMedia Ltd.
Ac toz S oft C o., Ltd.
T ree.C om, Inc.
O penwav e S y s tems Inc.
G ameO n C o L td.
R ealNetwork s Inc.
J umbuc k E ntertainment Limited
1 1 1 1 0 0 0 0 0 0 0
As k net AG
0
Look S mart, L td.
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