This document summarizes earnings reports from several gaming companies that operate in the Web 2.0 universe. Changyou.com reported 26% revenue growth with growth in key metrics like registered users. Sohu reported 13% revenue growth, with gaming revenue up 26% and advertising down 2%. A smaller social gaming company, Watercooler, raised $5.5 million from Betfair, indicating the attractiveness of social gaming. Overall, Halloween seemed to scare off investors as the stock prices of many Web 2.0 companies declined and average deal size dropped slightly.
LATTER HALF OF 2009: FORGING FORWARD
DEAL VALUE ON PACE TO MEET NOVEMBER LEVEL
December starts at strong pace: Total transaction value in the Web 2.0 universe for the first week of December is $68.8 million. The number of financings stands at seven, averaging $9.8 million each. In comparison, total capital raised in November was $203.4 million, averaging $11.3 million (18 deals); October was $171.3 million, averaging $6.3 million (27 deals); and September was $232.8 million, averaging $9.0 million (26 deals).
Broad-based sector financing: Video, Gaming, Advertising, Collaboration, and Analytics experienced the most financing activity among our Web 2.0 sector categories in the past three months by number of transactions (six each). Social Networks remain strong with five deals in the past quarter. Infrastructure and Search round out the top three positions at four deals each over the past three months. The $400 million acquisition of Playfish skews the Virtual Worlds segment to the highest total.
Market pull-back abates – universe split between risers and decliners: Twenty-five companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1), while 22 companies showed negative 1-week returns.
New royalty agreement for webcasting & copyright firms: SoundExchange, a nonprofit royalty collecting organization associated with the Recording Industry Association of America (RIAA) agreed this past week to a new deal regarding royalty rates for webcasting. Under the new agreement, large commercial webcasters will pay up to 25% of their revenue to copyright holders – well below the 70% that could have been imposed under an earlier deal. While the deal was initially agreed to by three smaller Internet radio webcasters, Pandora Media, the third largest radio site (according to Alexa), also indicated it would sign on to the agreement.
Online Media companies lead financing: Two online media companies – Pandora (Internet Radio) and QuickPlay (Mobile Video) have secured the largest financing transactions thus far in July ($35 million and $12 million respectively). Total capital raised so far in July is $66.1 million through eight transactions, averaging $8.3 million per transaction. June closed with $180 million in financing on 36 transactions. The averages for the months of May (excluding the Facebook transaction) and June were $6.4 million and $4.7 million, respectively.
A weak price performance week: The companies in our universe had weak stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with 30 companies showing negative returns on the week. Gravity (NasdaqGM: GRVY) led the group with a 33% return, while GungHo (3765-OSE) had the worst return, dropping 26.4% in the week.
Month-to-date financings in May totalled $106.6 million; led by the $20
million One Net financing. So far, there have been 18 financings in May,
with 10 deals greater than $5 million and only five less than $5 million.
There have been two financings greater than $10 million (Cyberplex and One
Net), with the capital raises by Imeem and EveryZing close behind at $8.8
million and $8.3 million, respectively. The average value thus far in May is
$5.9 million, slightly below the average value for April of $6.5 million on
21 financings. The March average was $6.6 million on 24 financings. Except
for two deals (Kaixin001.com and Collective Media), all were below $20
million for the last three months and a total of four deals were greater
than or equal to $15 million.
*One Net’s $20 million financing is largest deal in May: *One Net announced
a $20 million financing last week, the largest deal so far in May. Ten of
the 18 deals in the month are equal to or greater than $5 million. For
additional details, see Figures 23 and 24 (at end of note). Also note that
the spin-off of StumbleUpon from E-bay on a $29 million valuation occurred
in May. E-bay had bought StumbleUpon for $75 million.
*A strong price performance week: *The companies in our universe had
relatively strong stock price performances over the past week (for stocks
with prices greater than $1) (Figure 6), with 31 companies showing positive
returns on the week. OpenWave Systems (NASDQ:OPWV) led the group with a
49.2% return, while DigitalTown (OTCBB:DGTW) had the worst return, dropping
35.0% in the week.
LATTER HALF OF 2009: FORGING FORWARD
DEAL VALUE ON PACE TO MEET NOVEMBER LEVEL
December starts at strong pace: Total transaction value in the Web 2.0 universe for the first week of December is $68.8 million. The number of financings stands at seven, averaging $9.8 million each. In comparison, total capital raised in November was $203.4 million, averaging $11.3 million (18 deals); October was $171.3 million, averaging $6.3 million (27 deals); and September was $232.8 million, averaging $9.0 million (26 deals).
Broad-based sector financing: Video, Gaming, Advertising, Collaboration, and Analytics experienced the most financing activity among our Web 2.0 sector categories in the past three months by number of transactions (six each). Social Networks remain strong with five deals in the past quarter. Infrastructure and Search round out the top three positions at four deals each over the past three months. The $400 million acquisition of Playfish skews the Virtual Worlds segment to the highest total.
Market pull-back abates – universe split between risers and decliners: Twenty-five companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1), while 22 companies showed negative 1-week returns.
New royalty agreement for webcasting & copyright firms: SoundExchange, a nonprofit royalty collecting organization associated with the Recording Industry Association of America (RIAA) agreed this past week to a new deal regarding royalty rates for webcasting. Under the new agreement, large commercial webcasters will pay up to 25% of their revenue to copyright holders – well below the 70% that could have been imposed under an earlier deal. While the deal was initially agreed to by three smaller Internet radio webcasters, Pandora Media, the third largest radio site (according to Alexa), also indicated it would sign on to the agreement.
Online Media companies lead financing: Two online media companies – Pandora (Internet Radio) and QuickPlay (Mobile Video) have secured the largest financing transactions thus far in July ($35 million and $12 million respectively). Total capital raised so far in July is $66.1 million through eight transactions, averaging $8.3 million per transaction. June closed with $180 million in financing on 36 transactions. The averages for the months of May (excluding the Facebook transaction) and June were $6.4 million and $4.7 million, respectively.
A weak price performance week: The companies in our universe had weak stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with 30 companies showing negative returns on the week. Gravity (NasdaqGM: GRVY) led the group with a 33% return, while GungHo (3765-OSE) had the worst return, dropping 26.4% in the week.
Month-to-date financings in May totalled $106.6 million; led by the $20
million One Net financing. So far, there have been 18 financings in May,
with 10 deals greater than $5 million and only five less than $5 million.
There have been two financings greater than $10 million (Cyberplex and One
Net), with the capital raises by Imeem and EveryZing close behind at $8.8
million and $8.3 million, respectively. The average value thus far in May is
$5.9 million, slightly below the average value for April of $6.5 million on
21 financings. The March average was $6.6 million on 24 financings. Except
for two deals (Kaixin001.com and Collective Media), all were below $20
million for the last three months and a total of four deals were greater
than or equal to $15 million.
*One Net’s $20 million financing is largest deal in May: *One Net announced
a $20 million financing last week, the largest deal so far in May. Ten of
the 18 deals in the month are equal to or greater than $5 million. For
additional details, see Figures 23 and 24 (at end of note). Also note that
the spin-off of StumbleUpon from E-bay on a $29 million valuation occurred
in May. E-bay had bought StumbleUpon for $75 million.
*A strong price performance week: *The companies in our universe had
relatively strong stock price performances over the past week (for stocks
with prices greater than $1) (Figure 6), with 31 companies showing positive
returns on the week. OpenWave Systems (NASDQ:OPWV) led the group with a
49.2% return, while DigitalTown (OTCBB:DGTW) had the worst return, dropping
35.0% in the week.
The fourth week of April had only a marginal number of capital raises (four)
and not enough to push the month above March and February levels. Total
financings (month-to-date) were $102.3 million, with February and March
closing off at $185.5 mm and $159.5 mm, respectively. As of last week, a
total of 16 deals closed, with the $20 million raise by Collective Media and
$16 million by GOOM Radio being major contributors. Most of the companies in
our universe had positive stock price performances over the past week (for
stocks with prices greater than $1), with 22 companies showing positive
returns on the week. Modern Times Group Mtg AB (MTG B-OM) led the group with
a 27.7% return, while DigitalTown Inc. (DGTW-OTCBB) had the worst return,
dropping 21.7% in the week. Two companies had better than 20% price
increases last week.
April on track to be record month?: Total transaction value in the Web 2.0 universe April-to-date is $726.1 million. The number of financings stands at 40 averaging $18.2 million each. Note that this includes the $300 million investment in DST by Tencent. Even excluding this transaction, the average is $15.2 million. In comparison, total capital raised in March was $168.1 million, averaging $5.4 million over 31 deals. The highest monthly total in our Web 2.0 financing database was April 2008 with a total of $765.5 million raised in 47 transactions.
Deal round-up for April: The large deal highlights for the month include:
§
•Tencent invested $300mm in DST (investor in Facebook, Zynga, Groupon).
DST invested $135mm in social-shopping service Groupon.
Salesforce.com acquired crowd-sourced personal contact service, Jigsaw, for $142 mm.
•Warner Bros. acquired gaming company, Turbine, for $160 mm.
•Ankeena Networks, media infrastructure solution provider was acquired by Juniper for $100mm.
Bullish week for Web 2.0: Sixty-nine percent of the companies in our universe had increased or flat market caps over the past week, sixty-nine percent had increased EV/Revenue multiples, 75% had increased or flat EV/EBITDA multiples and 73% had increased or flat P/E mutliples .
Web 2.0 Weekly - June 22, 2010: "AOL Sells Bebo for Massive Loss"David Shore
Deals (M&A, Finance)
AOL is reported to have sold Bebo, the UK-based social network it bought just two years ago for $850 mm, to private equity firm Criterion Partners for under $10 mm. Based on our calculations, AOL paid the equivalent of $38 per Unique Visitor (UV) for Bebo, and sold it for under $1 per UV.
Positive price performance
The Web 2.0 public company universe rose again this week, with 60% of companies seeing their market cap rise vs. 33% falling and 7% flat.
Web 2.0 Weekly - July 20, 2010: "DST Cashing Up"David Shore
Large deals drive July financing to near record levels: With another huge financing (DST - see below) July financing is near record monthly levels. Total raised month-to-date is $742.6 million over 29 deals - averaging $25.6 million each. Excluding the Zynga ($100 million) and DST ($388 million) deals, the average deal size is $9.4 million. In comparison, total capital raised in July 2009 was $209.0 million, averaging $5.2 million over 40 deals. The monthly median total is ~$280 million with a median deal size of $8.1 million.
Deals (M&A, Finance)
Naspers, a South African media and print conglomerate, invested $388 mm in Digital Sky Technologies, the Russian digital media holding company with significant stakes in Facebook, Groupon, Mail.ru, and Zynga.
The next biggest raise of the week was Australian enterprise software developer, Atlassian, receiving $60 mm in Series A funds from Accel Partners.
Social Commerce continues to garner attention – this week BlueSwarm ($0.8 mm angel round) and Shopkick ($15 mm Series B round) raised money.
Another $31 mm in venture funds found their way to Advertising-related start-ups, including Israel-based Adsmarket ($17 mm), as well as a pair of India-based companies – Komli Media ($6 mm) and InMobi ($8 mm).
Price performance split
The Web 2.0 public company universe was split this week, with 48% of companies seeing their market cap fall vs. 43% rising and 9% flat.
The presentations content includes an update on the IPO market; legal and accounting best practices in preparing for an IPO, and insights from finance professionals who have executed successful IPOs along with firms that assist companies in optimizing their IPO opportunities.
The fourth week of April had only a marginal number of capital raises (four)
and not enough to push the month above March and February levels. Total
financings (month-to-date) were $102.3 million, with February and March
closing off at $185.5 mm and $159.5 mm, respectively. As of last week, a
total of 16 deals closed, with the $20 million raise by Collective Media and
$16 million by GOOM Radio being major contributors. Most of the companies in
our universe had positive stock price performances over the past week (for
stocks with prices greater than $1), with 22 companies showing positive
returns on the week. Modern Times Group Mtg AB (MTG B-OM) led the group with
a 27.7% return, while DigitalTown Inc. (DGTW-OTCBB) had the worst return,
dropping 21.7% in the week. Two companies had better than 20% price
increases last week.
April on track to be record month?: Total transaction value in the Web 2.0 universe April-to-date is $726.1 million. The number of financings stands at 40 averaging $18.2 million each. Note that this includes the $300 million investment in DST by Tencent. Even excluding this transaction, the average is $15.2 million. In comparison, total capital raised in March was $168.1 million, averaging $5.4 million over 31 deals. The highest monthly total in our Web 2.0 financing database was April 2008 with a total of $765.5 million raised in 47 transactions.
Deal round-up for April: The large deal highlights for the month include:
§
•Tencent invested $300mm in DST (investor in Facebook, Zynga, Groupon).
DST invested $135mm in social-shopping service Groupon.
Salesforce.com acquired crowd-sourced personal contact service, Jigsaw, for $142 mm.
•Warner Bros. acquired gaming company, Turbine, for $160 mm.
•Ankeena Networks, media infrastructure solution provider was acquired by Juniper for $100mm.
Bullish week for Web 2.0: Sixty-nine percent of the companies in our universe had increased or flat market caps over the past week, sixty-nine percent had increased EV/Revenue multiples, 75% had increased or flat EV/EBITDA multiples and 73% had increased or flat P/E mutliples .
Web 2.0 Weekly - June 22, 2010: "AOL Sells Bebo for Massive Loss"David Shore
Deals (M&A, Finance)
AOL is reported to have sold Bebo, the UK-based social network it bought just two years ago for $850 mm, to private equity firm Criterion Partners for under $10 mm. Based on our calculations, AOL paid the equivalent of $38 per Unique Visitor (UV) for Bebo, and sold it for under $1 per UV.
Positive price performance
The Web 2.0 public company universe rose again this week, with 60% of companies seeing their market cap rise vs. 33% falling and 7% flat.
Web 2.0 Weekly - July 20, 2010: "DST Cashing Up"David Shore
Large deals drive July financing to near record levels: With another huge financing (DST - see below) July financing is near record monthly levels. Total raised month-to-date is $742.6 million over 29 deals - averaging $25.6 million each. Excluding the Zynga ($100 million) and DST ($388 million) deals, the average deal size is $9.4 million. In comparison, total capital raised in July 2009 was $209.0 million, averaging $5.2 million over 40 deals. The monthly median total is ~$280 million with a median deal size of $8.1 million.
Deals (M&A, Finance)
Naspers, a South African media and print conglomerate, invested $388 mm in Digital Sky Technologies, the Russian digital media holding company with significant stakes in Facebook, Groupon, Mail.ru, and Zynga.
The next biggest raise of the week was Australian enterprise software developer, Atlassian, receiving $60 mm in Series A funds from Accel Partners.
Social Commerce continues to garner attention – this week BlueSwarm ($0.8 mm angel round) and Shopkick ($15 mm Series B round) raised money.
Another $31 mm in venture funds found their way to Advertising-related start-ups, including Israel-based Adsmarket ($17 mm), as well as a pair of India-based companies – Komli Media ($6 mm) and InMobi ($8 mm).
Price performance split
The Web 2.0 public company universe was split this week, with 48% of companies seeing their market cap fall vs. 43% rising and 9% flat.
The presentations content includes an update on the IPO market; legal and accounting best practices in preparing for an IPO, and insights from finance professionals who have executed successful IPOs along with firms that assist companies in optimizing their IPO opportunities.
Financing activity continued to ramp up in April after a slow start to the month. Total financings (month-to-date) jumped to $92.2 million (this week) from $66.3 million (last week) – a significant +40%. As of last week, a total of 12 deals closed, with a $16 million raise by GOOM Radio being a major contributor. A total of four deals greater than $10 million each helped the overall statistics. Social Networking company DigitalTown Inc. (DGTW-OTCBB) was the top price performer for the week, returning 20%, closely followed by Kingsoft Co. Ltd. (3888-EHK) at 17.6%. The9 Ltd. (NCTY-NasdaqGS) had the worst return, dropping 27.6% in the week after news of its losing the license to operate World of Warcraft in China. Of the 34 companies (with stock price greater than $1), 10 companies on our list had price performances greater than +10%. Only one company returned more than
20%.
*Capital Market Activity: *The month of May closed with 20 financings
totalling $327.1 million led by the $200 million investment by Digital Sky
Technologies in Facebook. Excluding the Facebook transaction, May would have
been the lowest month in CY2009. The Facebook transaction aside, four
transactions (One Net Ent., Cyberplex, Peer39 and OpenX), were greater than
or equal to $10 million. The average value in May is $15.6 million (and $6.4
million excluding the Facebook transaction), greater than the average value
for April of $6.2 million on 21 financings. The March average was $6.5
million on 24 financings. If you are aware of any companies that have
recently raised money that are not on our list, please send me an email to
have them added to our database.
*Price Performance: *Most of the companies in our universe had positive
stock price performances over the past week (for stocks with prices greater
than $1) (Figure 12), with 29 companies showing positive returns on the
week. GameOn co. Ltd (3812-TSE) led the group with a 28.2% return, while
eolith Co. Ltd. (A041060-KOSE) had the worst return, dropping 13.7% in the
week.
In the first week of May, $38.9 million was raised on seven deals. Over the last three months, four sectors, Media, Ad Network, Video, and Social Network, have seen the most activity, bringing in a combined $209 million on 25 transactions. Overall, capital market activity has trended downwards on the back of a declining economy and lower valuations. With any sustainable certainty and stability in the public markets, we would expect to see activity pick up as more institutions participate in private placements. Seven companies raised $38.9 million in the first week of May. EveryZing, a company in the video search sector, raised $8.3 million, followed by Gist at $6.8 million. All transactions except one (Resonate Networks) were greater than or equal to $5 million. The companies in our universe had mixed stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with 22 companies showing positive returns on the week. Tree.com (TREE-NASDAQ) led the group with a 27.5% return, while Beyond Commerce, Inc. (BYOC-OTCBB) had the worst return, dropping 21.8% in the week.
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The month of April saw 21 financings totalling $144.5 million, with not enough transactions (volume and size) to boost levels above any month in 2009. In perspective, February and March closed off at $185.5 mm and $159.5 million, respectively. On a much more positive note, we saw the announcement from Disney taking a significant position in Hulu - a strategic move in Web-TV distribution. This brings together three of the biggest broadcast and cable network owners under the same banner. Additionally, we would like to highlight that from a sector perspective, video saw the most amount of capital raised at $75.4 million (Figure 4) over a 3-month period. Is this an indication of things to come? Most of the companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1) (Figure 12), with 19 companies showing positive returns on the week. Tree.com (TREE-NASDAQ) led the group with a 62.3% return, while Beyond Commerce Inc. (BYOC-OTCBB) had the worst return, dropping 10.7% in the week. Four companies had better than 20% price increases last week.
ES el. komercijos statistiniai duomenys, 2011 m.Saulius Dackys
Pateikiame ES institucijų, renginiui Digital Agenda Assembly 2012, surinktus statistinius duomenis apie bandrą situaciją el. komercijos rinkoje. Juose puikiai matosi kokioje vietoje yra el. komercija Lietuvoje. Džiugu tai, kad turime kur dirbti.
Aviation MRO IT: Emergence of SaaS and Convergence of BPOguesta9496c4
White paper presentation on the current state, trends and future scenarios for aviation maintenance technologies, taking into account disruptive technological trends in Autonomics, Diagnostics, Prognostics, virtualization, SaaS, Web 2.0 collaboration.
Web 2.0 Weekly - Aug. 10, 2010: "Consolidation by Google"David Shore
Deals (M&A, Finance) – Consolidation by Google
Google confirmed or announced two acquisitions during the week, including Jambool
($70 mm) involved in virtual goods monetization processes, and widget market, Slide
($182 mm).
In other acquisition-related news, Forbes sold investment media website Investopedia to ValueClick for $42 mm. Zynga acquired Japanese mobile app and game developer,
Unoh, for an estimated $29 mm. Finally, dubbed “the Spanish Facebook,” social
networking site, Tuenti, was acquired by Telefonica in a $99 mm deal.
The largest financing (aside from the aforementioned M&A activity) involved “the
Chinese Youtube,” Tudou, raising $50 mm in Series E funds.
Price Performance
Distinctly negative price momentum, with 49% of stocks falling over the past week (after 48% of stocks declines last week, and 51% declined the week prior).
Web 2.0 Weekly - Aug. 4, 2010: "Playdom is going to Disney World"David Shore
Deals (M&A, Finance) – Disney Gets In To Social/Mobile Video Games
Disney acquired social and mobile game developer, Playdom, for $563 mm in upfront consideration and the potential for $200 mm in further earn-out based consideration. Disney management notes that the company continues to be on the acquisition war path.
The largest deals in the week involved (wait for it…) the advertising sector, with $15 mm in follow-on financings to eXelate and AdMeld, and $8 mm to BuzzLogic.
Four different social network/media companies received financing in the week, including, Hot Potato (acquired for $10 mm by Facebook), PlacePop ($1.4 mm round), Rapportive ($1 mm seed round), and dating site, Triangulate ($0.75 seed round).
Price Performance - Web 2.0 Valuation Reverse Course and Head Upward
The Web 2.0 public company universe was positive this week with 47% of stocks rising, 46% falling, and 7% flat.
Web 2.0 Weekly - July 27, 2010: "July Financings - Approaching High for 2010"David Shore
Deals (M&A, Finance)
Jive Software received the biggest investment of the week at $30 mm, bringing its total capital raised to date to $57 mm – the company brings social network-like functions to the realm of enterprise collaboration.
Advertising networks continue to receive the most attention among sectors we track – this week, $24.6 mm in financings were announced, including sports-related ad network Sportgenic (acquired by Glam Media for $12 mm), and TurnHere ($12.6mm in Series B funds).
Rumour alert – we continue to hear more frequent buzz concerning the potential acquisition of social gaming developer Playdom by Disney.
Synchronica (AIM:SYNC) intends to acquire iseemedia (TSXV:IEE) for C$8.8 mm in stock – both companies are engaged in mobile communications development, such as email-to-SMS.
Price performance turns positive
The Web 2.0 public company universe was positive this week, with 54% of companies seeing their market cap rise vs. 34% falling and 12% flat.
Google/Zynga deal drives July financing results: After starting very slowly (just one deal announced in the prior week) July financing increased substantially as a result of the Google/Zynga financing ($100-200 million). Total raised month-to-date is $158.8 million over 12 deals - averaging $13.2 million each. In comparison, total capital raised in July 2009 was $206.5 million, averaging $5.3 million over 39 deals. Excluding Dec 09 and Apr 10, the average monthly total is ~$280 million.
Deals (M&A, Finance)
Google invested a rumoured $100-$200 mm in social game developer, Zynga, bringing that company’s total funding to almost $500 mm (assuming the lower end of the range).
The Gaming sector remains hot – along with Google’s investment in Zynga, The9 Ltd. (Chinese online game developer and operator) invested $5 mm in Delaware-based Aurora Feint (focused on gaming for the mobile space).
A triad of financings in the Social Commerce space this week, including Beyond the Rack ($12 mm), ThredUP ($1.7 mm), and BuyWithMe ($16 mm in a Series B financing).
Sysomos, Canadian social media monitoring firm, was acquired by MarketWire for between $25 mm and $35 mm.
Price performance turns positive
The Web 2.0 public company universe rose this week, with 58% of companies seeing their market cap rise vs. 32% rising and 10% flat.
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.
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.
Web 2.0 Weekly - May 26, 2010: "Market Declines Impact Web 2.0 Universe Valua...David Shore
May tracking to average monthly levels: After a slow start to the month, financing in the Web 2.0 universe has rebounded and is now on track with prior months. Total transaction value (excluding M&A) in the Web 2.0 universe for May (month-to-date) is $189.9 million from 30 transactions, averaging $6.3 million each. In comparison, total capital raised in May 2009 was $375.0 million, averaging $12.5 million over 30 deals. Excluding May 09, Dec 09 and Apr 10, the average monthly total is $212 million.
Deals (M&A, Finance)
Cyberplex (TSX:CX) announced plans to acquire Tsavo Media for US$75.6 mm, partially funded through a C$30 mm bought deal financing at $0.55.
Online gaming company Gaikai, raised $10.0 mm in Series B financing.
Blip.TV, online TV provider, raised $10.1 mm in Series C financing.
Financial Results/Guidance
Netease.com (NasdaqGS:NTES, online gaming) reported Q1/F10 revenue of RMB 1.2 bn (vs. RMB 781.7 mm in the same period last year).
Snap Interactive (OTCBB:STVI, online dating) reported Q1/F10 revenue growth of 20% to $0.927 mm from $0.768 mm.
Bearish week again: Price performance was largely negative in our Web 2.0 universe. This impacted valuation multiples, which fell for ~80% of the companies in our universe.
Slow start in May after record April: Total transaction value (excluding M&A) in the Web 2.0 universe for April was $813.5 million - the highest monthly total we have recorded. The number of financings was also a record, at 49, averaging $16.6 million each. Note that this includes the $300 million investment in DST by Tencent. Excluding this transaction, the average is $10.7 million. May 2010, in contrast, has started slowly, with only $37.4 million in financing announced thus far, averaging just $3.4 million across 11 deals. In comparison, total capital raised in May 2009 was $375.0 million, averaging $12.5 million over 30 deals.
Deal round-up for May: The large deal highlights for the month include:
Fluid Music (TSX:FMN, digital music distributor) will acquire Mood Media (provider of sensorial marketing solutions) for €160 mm.
Lithium is purchasing analytics developer, Scout Labs, for $20 mm.
Fatfoogoo (purveyor of virtual goods) is being acquired by Digital River for $10 mm.
Groupalia, the Spanish answer to online group discount retailers, Groupon and LivingSocial, raised $2.5 mm in a Series A financing – the online group discounters have been raising money quickly (DST invested $135 mm in Groupon in April) with a total of $222 mm in funding coming to just these three players thus far.
Bearish week again: Price performance was largely negative in our Web 2.0 universe, with prices dropping for over 70% of the companies.
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.
10 01 05 Web 2.0 Weekly Special EditionDavid Shore
TOP FIVE DEALS OF 2009
The Top Five: Despite over 400 transactions in 2009, it wasn’t hard choosing our Top Five transactions for 2009 (with a little bit of massaging). Our Top Five transactions are: Facebook’s $200 million D round, Twitter’s $100 million E round, the $2.25 billion acquisition of Skype, the almost $1 billion in financing/M&A for Social Gaming companies (including Zynga, Playdom and Playfish), and the incredible per unique visitor value ascribed in the financing for location-based social networking company Gowalla.
• Facebook raises $200 million D round: In May 2009, Facebook announced a new financing round – raising $200 million from Digital Sky Technologies. The transaction gave Digital Sky a 1.96% stake, valuing Facebook at $10 billion. This financing brought the company’s total to $678.2 million. This was also the largest financing we recorded in 2009.
• Twitter raises $100 million E round: The third largest financing round in 2009 belonged to Twitter – a $100 million Series E in September 2009. The financing reportedly valued Twitter at $1 billion – a remarkable valuation for a company that has not yet formalized a revenue model! More recently, it has been reported that Twitter was actually profitable in 2009 due to the $25 million in search deals it signed in October with Google and Microsoft.
• Skype is acquired for $2.025 billion: By far the largest overall transaction in our database in 2009 was the acquisition of a majority position (65%) in Skype from eBay for $2.025 billion – announced in September 2009. The transaction was completed in November 2009. eBay had purchased Skype for $4.0 billion in 2005.
• Social Gaming financing activity reaches ~$1 billion (Zynga, Playfish, Playdom, etc.): Perhaps the hottest sector overall in 2009 was Social Gaming. This segment of the Web 2.0 market had the third highest number of deals (39) and generated almost $1 billion in financing/M&A activity – the second highest total overall (Figure 1). Three transactions in particular stand out in the social gaming space – the $400 million acquisition of Playfish (by Electronic Arts, November 2009), the $180 million financing of Zynga (Series C, December 2009, by Digital Sky), and the $43 million first round of financing for Playdom (New Enterprise lead, November 2009, Series A). There has been much speculation as to how the larger social gaming companies will proceed, with potential IPO or further strategic M&A most likely.
• Hottest new sector? Location-based social networks (Foursquare, Gowalla, etc.). Unique visitor value skyrockets: Financing activity for location-based social networks really heated up late in 2009. While the total financing raised in 2009 was quite small (~$15 million), the hype surrounding location-based SNS companies was substantial. In our opinion, this was highlighted by the $8.4 million December Series B financing for Gowalla. The reported valuation of $28.4 million implies a value of $568 for each of its 50,000 users (Figure 2). That compares to a $40 per user value we estimate for the Foursquare financing in September.
Observability Concepts EVERY Developer Should Know -- DeveloperWeek Europe.pdfPaige Cruz
Monitoring and observability aren’t traditionally found in software curriculums and many of us cobble this knowledge together from whatever vendor or ecosystem we were first introduced to and whatever is a part of your current company’s observability stack.
While the dev and ops silo continues to crumble….many organizations still relegate monitoring & observability as the purview of ops, infra and SRE teams. This is a mistake - achieving a highly observable system requires collaboration up and down the stack.
I, a former op, would like to extend an invitation to all application developers to join the observability party will share these foundational concepts to build on:
Epistemic Interaction - tuning interfaces to provide information for AI supportAlan Dix
Paper presented at SYNERGY workshop at AVI 2024, Genoa, Italy. 3rd June 2024
https://alandix.com/academic/papers/synergy2024-epistemic/
As machine learning integrates deeper into human-computer interactions, the concept of epistemic interaction emerges, aiming to refine these interactions to enhance system adaptability. This approach encourages minor, intentional adjustments in user behaviour to enrich the data available for system learning. This paper introduces epistemic interaction within the context of human-system communication, illustrating how deliberate interaction design can improve system understanding and adaptation. Through concrete examples, we demonstrate the potential of epistemic interaction to significantly advance human-computer interaction by leveraging intuitive human communication strategies to inform system design and functionality, offering a novel pathway for enriching user-system engagements.
Securing your Kubernetes cluster_ a step-by-step guide to success !KatiaHIMEUR1
Today, after several years of existence, an extremely active community and an ultra-dynamic ecosystem, Kubernetes has established itself as the de facto standard in container orchestration. Thanks to a wide range of managed services, it has never been so easy to set up a ready-to-use Kubernetes cluster.
However, this ease of use means that the subject of security in Kubernetes is often left for later, or even neglected. This exposes companies to significant risks.
In this talk, I'll show you step-by-step how to secure your Kubernetes cluster for greater peace of mind and reliability.
Removing Uninteresting Bytes in Software FuzzingAftab Hussain
Imagine a world where software fuzzing, the process of mutating bytes in test seeds to uncover hidden and erroneous program behaviors, becomes faster and more effective. A lot depends on the initial seeds, which can significantly dictate the trajectory of a fuzzing campaign, particularly in terms of how long it takes to uncover interesting behaviour in your code. We introduce DIAR, a technique designed to speedup fuzzing campaigns by pinpointing and eliminating those uninteresting bytes in the seeds. Picture this: instead of wasting valuable resources on meaningless mutations in large, bloated seeds, DIAR removes the unnecessary bytes, streamlining the entire process.
In this work, we equipped AFL, a popular fuzzer, with DIAR and examined two critical Linux libraries -- Libxml's xmllint, a tool for parsing xml documents, and Binutil's readelf, an essential debugging and security analysis command-line tool used to display detailed information about ELF (Executable and Linkable Format). Our preliminary results show that AFL+DIAR does not only discover new paths more quickly but also achieves higher coverage overall. This work thus showcases how starting with lean and optimized seeds can lead to faster, more comprehensive fuzzing campaigns -- and DIAR helps you find such seeds.
- These are slides of the talk given at IEEE International Conference on Software Testing Verification and Validation Workshop, ICSTW 2022.
A tale of scale & speed: How the US Navy is enabling software delivery from l...sonjaschweigert1
Rapid and secure feature delivery is a goal across every application team and every branch of the DoD. The Navy’s DevSecOps platform, Party Barge, has achieved:
- Reduction in onboarding time from 5 weeks to 1 day
- Improved developer experience and productivity through actionable findings and reduction of false positives
- Maintenance of superior security standards and inherent policy enforcement with Authorization to Operate (ATO)
Development teams can ship efficiently and ensure applications are cyber ready for Navy Authorizing Officials (AOs). In this webinar, Sigma Defense and Anchore will give attendees a look behind the scenes and demo secure pipeline automation and security artifacts that speed up application ATO and time to production.
We will cover:
- How to remove silos in DevSecOps
- How to build efficient development pipeline roles and component templates
- How to deliver security artifacts that matter for ATO’s (SBOMs, vulnerability reports, and policy evidence)
- How to streamline operations with automated policy checks on container images
LF Energy Webinar: Electrical Grid Modelling and Simulation Through PowSyBl -...DanBrown980551
Do you want to learn how to model and simulate an electrical network from scratch in under an hour?
Then welcome to this PowSyBl workshop, hosted by Rte, the French Transmission System Operator (TSO)!
During the webinar, you will discover the PowSyBl ecosystem as well as handle and study an electrical network through an interactive Python notebook.
PowSyBl is an open source project hosted by LF Energy, which offers a comprehensive set of features for electrical grid modelling and simulation. Among other advanced features, PowSyBl provides:
- A fully editable and extendable library for grid component modelling;
- Visualization tools to display your network;
- Grid simulation tools, such as power flows, security analyses (with or without remedial actions) and sensitivity analyses;
The framework is mostly written in Java, with a Python binding so that Python developers can access PowSyBl functionalities as well.
What you will learn during the webinar:
- For beginners: discover PowSyBl's functionalities through a quick general presentation and the notebook, without needing any expert coding skills;
- For advanced developers: master the skills to efficiently apply PowSyBl functionalities to your real-world scenarios.
Pushing the limits of ePRTC: 100ns holdover for 100 daysAdtran
At WSTS 2024, Alon Stern explored the topic of parametric holdover and explained how recent research findings can be implemented in real-world PNT networks to achieve 100 nanoseconds of accuracy for up to 100 days.
Le nuove frontiere dell'AI nell'RPA con UiPath Autopilot™UiPathCommunity
In questo evento online gratuito, organizzato dalla Community Italiana di UiPath, potrai esplorare le nuove funzionalità di Autopilot, il tool che integra l'Intelligenza Artificiale nei processi di sviluppo e utilizzo delle Automazioni.
📕 Vedremo insieme alcuni esempi dell'utilizzo di Autopilot in diversi tool della Suite UiPath:
Autopilot per Studio Web
Autopilot per Studio
Autopilot per Apps
Clipboard AI
GenAI applicata alla Document Understanding
👨🏫👨💻 Speakers:
Stefano Negro, UiPath MVPx3, RPA Tech Lead @ BSP Consultant
Flavio Martinelli, UiPath MVP 2023, Technical Account Manager @UiPath
Andrei Tasca, RPA Solutions Team Lead @NTT Data
PHP Frameworks: I want to break free (IPC Berlin 2024)Ralf Eggert
In this presentation, we examine the challenges and limitations of relying too heavily on PHP frameworks in web development. We discuss the history of PHP and its frameworks to understand how this dependence has evolved. The focus will be on providing concrete tips and strategies to reduce reliance on these frameworks, based on real-world examples and practical considerations. The goal is to equip developers with the skills and knowledge to create more flexible and future-proof web applications. We'll explore the importance of maintaining autonomy in a rapidly changing tech landscape and how to make informed decisions in PHP development.
This talk is aimed at encouraging a more independent approach to using PHP frameworks, moving towards a more flexible and future-proof approach to PHP development.
Why You Should Replace Windows 11 with Nitrux Linux 3.5.0 for enhanced perfor...SOFTTECHHUB
The choice of an operating system plays a pivotal role in shaping our computing experience. For decades, Microsoft's Windows has dominated the market, offering a familiar and widely adopted platform for personal and professional use. However, as technological advancements continue to push the boundaries of innovation, alternative operating systems have emerged, challenging the status quo and offering users a fresh perspective on computing.
One such alternative that has garnered significant attention and acclaim is Nitrux Linux 3.5.0, a sleek, powerful, and user-friendly Linux distribution that promises to redefine the way we interact with our devices. With its focus on performance, security, and customization, Nitrux Linux presents a compelling case for those seeking to break free from the constraints of proprietary software and embrace the freedom and flexibility of open-source computing.
Dev Dives: Train smarter, not harder – active learning and UiPath LLMs for do...UiPathCommunity
💥 Speed, accuracy, and scaling – discover the superpowers of GenAI in action with UiPath Document Understanding and Communications Mining™:
See how to accelerate model training and optimize model performance with active learning
Learn about the latest enhancements to out-of-the-box document processing – with little to no training required
Get an exclusive demo of the new family of UiPath LLMs – GenAI models specialized for processing different types of documents and messages
This is a hands-on session specifically designed for automation developers and AI enthusiasts seeking to enhance their knowledge in leveraging the latest intelligent document processing capabilities offered by UiPath.
Speakers:
👨🏫 Andras Palfi, Senior Product Manager, UiPath
👩🏫 Lenka Dulovicova, Product Program Manager, UiPath
The Art of the Pitch: WordPress Relationships and SalesLaura Byrne
Clients don’t know what they don’t know. What web solutions are right for them? How does WordPress come into the picture? How do you make sure you understand scope and timeline? What do you do if sometime changes?
All these questions and more will be explored as we talk about matching clients’ needs with what your agency offers without pulling teeth or pulling your hair out. Practical tips, and strategies for successful relationship building that leads to closing the deal.
Enhancing Performance with Globus and the Science DMZGlobus
ESnet has led the way in helping national facilities—and many other institutions in the research community—configure Science DMZs and troubleshoot network issues to maximize data transfer performance. In this talk we will present a summary of approaches and tips for getting the most out of your network infrastructure using Globus Connect Server.
Enhancing Performance with Globus and the Science DMZ
09 10 27 Web 2.0 Weekly
1. SOFTWARE & SERVICES 27 OCTOBER 2009
DAVID SHORE, CFA, MBA 416.860.6784
WEB 2.O WEEKLY david.shore@researchcapital.com
Damian Wojcichowsky, CFA (Associate), 416.860.7652
EARNINGS RO UND-UP: WEB 2.0 EARNINGS SEASON BEGINS
GAM IN G CO M PA NI E S KI C K OF F E AR NI NG S SE A S O N I N T H E W E B 2 .0 U NI V E R SE …
Changyou.com is a China-based developer and operator of online games – including its 2-D martial arts saga, Tian
Long Ba Bu. The company reported revenue growth of 26% Y/Y in the third quarter, with revenue coming in at $68.7
million. Key operating metrics, which provide read-across colour on the state of broader gaming economics, include:
registered accounts, up 46% Y/Y to 75.1 million; active paying accounts, up 20% Y/Y to 2.4 million; and average
revenue per paying account, up 7% Y/Y to RMB190 (approximately US$28). Management guidance for $69-$71
million in revenue in Q4 is inline with analyst estimates.
Sohu, another Chinese-based company that provides online portals in the People’s Republic of China, which include
news, entertainment, and online gaming (through the recently spun-out Changyou.com which was previously its online
gaming division), reported revenue growth of 13% Y/Y to $136.6 million. Gaming revenue grew 26% Y/Y, while
advertising revenue declined 2% Y/Y (as a result of challenging comparisons against the third quarter last year in
which advertising spending boomed ahead of the Beijing Olympics). Guidance for Q4 revenue of $134.5-$138.5
million is slightly below analyst consensus of $141.7 million, implying between 11% and 14% Y/Y growth for the
quarter.
… AN D SM AL L E R S OC IA L G AMI NG D E V EL O P ER S GE T I N ON T H E A CT I O N
Watercooler, maker of online fan communities and sports-related social games, which boasts 26 million users
primarily on Facebook and six other social networks, raised $5.5 million. Adding intrigue to the deal is the fact that
Betfair, the legal online gambling site for horse racing, led the transaction. W e view the participation of Betfair as
indicative of the attractiveness of online social gaming – indeed, with Betfair unable to operate its core business in
the U.S. due to legal restrictions, an investment in W atercooler may represent a strategy that (1) brings the company
closer to the lucrative U.S. market, and (2) brings social network-based gaming expertise into the company fold.
F IN AL L Y – H AL L O W EE N S E EM S T O HA V E SC A RE D OF F I N V E ST O R S
Deal flow slowed down to four transactions in the week – a week which saw 31 of 56 companies in our W eb 2.0 public
comparables list (trading above $1 minimum) experience price declines in the market. Average deal size in the
quarter dropped from $7.8 million last week to $7.6 million currently.
Financing Activity Last Twelve Months
400.0 16.0
14.6
350.0 14.0
300.0 12.0
9.7
250.0 10.0
9.0
(US$m)
(US$m)
7.6 7.6
200.0 8.0
7.0 7.0 7.1
6.5 6.6
6.2
150.0 5.5 6.0
4.9
100.0 4.0
50.0 2.0
0.0 0.0
Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09
*May-09 includes $200m FB investment Total Average
This report has been created b y Anal ysts that are emplo yed b y Research Capital Corporation, a Canadian Investment Dealer.
For further disclosures, please see last page of this report.
w w w . r e s e a rc h c a p i t a l . c o m
T o ro n t o 4 1 6 . 8 6 0 . 7 6 0 0 Montreal 514.399.1500 Vancouver 604.662.1800 Calgary 403.265.7400 Regina 306.566.7550
2. Page 2
THE WEB 2.0 UNIVERSE
Eighty-nine public Web 2.0 companies: Our W eb 2.0 universe contains 89 companies, with a combined market cap of
approximately $72 billion (Figure 1). The median market cap for the group is $44.5 million, with average trailing revenue
of $161 million (median $57 million). The companies are also generally profitable with a median EBITDA margin of 12.5%.
On a valuation basis, the overall average is 6.0x trailing revenue (median 1.9x) and 11.4x trailing EBITDA (median 9.8x).
Twenty of the companies have more than 500 employees.
C omparable C ompany Analys is > Web 2.0
Trading C urrent US D Market US D L TM Total US D L TM Total E B ITDA TE V/L TM TE V/L TM
C ompany Name L TM as of Ticker E xc hange C urrency HQ P rice C ap ($m) R ev ($m) E B ITDA ($m) % R evenue E B ITDA E mployees
Accelerize New Media , Inc. 6/30/2009 AC LZ OT C B B US D United S ta tes 0. 55 15. 4 4. 4 (3.7) -83. 3% 4. 6x - 11
Actoz S oft C o. , Ltd. 6/30/2009 A052790 K OS E KR W S outh K orea 16,300 118. 3 108.7 25. 9 23. 8% 0. 8x 3. 3x NA
AQ Interactive, Inc. 6/30/2009 3838 TS E JPY J a pan 48,400 29. 4 66. 1 (2.0) -2.9% 0. 1x - NA
As s ociated Media Holdings Inc. 6/30/2007 AS MH OT C P K US D United S ta tes 0. 01 0.4 0. 1 (2.3) NM 12.6x - 3
B igs tring C orp. 6/30/2009 BS GC OT C B B US D United S ta tes 0. 03 2.0 0. 1 (1.5) NM 49.2x - 4
B eta wave C orporation 6/30/2009 B W AV OT C B B US D United S ta tes 0. 04 1.2 9. 4 (12. 6) NM - - 51
B eyond C ommerce, Inc. 6/30/2009 B Y OC OT C B B US D United S ta tes 0. 10 5.1 11. 7 (12. 8) NM 0. 9x - 101
B right T hings plc 3/31/2009 AIM: B G T AIM GBP United K ingdom 0. 01 5.4 0. 0 (2.7) NM - - NA
B roa dW ebAs ia Inc. 9/30/2008 BWBA OT C P K US D United S ta tes 0. 03 2.5 0. 0 (4.6) NM - - 46
C DC C orp. 6/30/2009 C HIN. A Na s daqG S US D Hong K ong 2. 48 262. 8 361.6 25. 1 6.9% 0. 7x 10. 3x 2, 227
C hangyou. com L imited 6/30/2009 C Y OU Na s daqG S US D C hina 31. 30 1,721. 5 241.2 147.2 61. 0% 6. 0x 9. 8x 628
C hina G a teway C orporation 9/30/2008 CGWY OT C P K US D United S ta tes 0. 00 0.0 6. 7 (6.6) -98. 9% 0. 0x - 37
C hines e G amer Interna tiona l 6/30/2009 G T S M: 3083 GTS M TWD T aiwa n 428 1,110. 0 61. 6 34. 7 56. 3% 16.8x 29. 9x NA
C LIC K E R Inc. 5/31/2009 C LK Z OT C B B US D United S ta tes 0. 01 0.9 2. 5 (1.2) -45. 8% 0. 4x - 22
C ornerW orld C orpora tion 7/31/2009 CWR L OT C B B US D United S ta tes 0. 06 5.7 6. 8 NM NM 2. 4x - 16
C yberplex Inc. 6/30/2009 T S X :C X TS X C AD C anada 1 77. 9 89. 8 9.7 10. 8% 0. 6x 6. 0x NA
DADA S pA 6/30/2009 C M: DA CM E UR Italy 7. 47 177. 4 241.9 31. 8 13. 1% 0. 9x 7. 1x NA
DXN Holdings B hd 5/31/2009 DX N K LS E MY R Ma la ys ia 0. 63 40. 9 77. 1 11. 1 14. 4% 0. 7x 5. 0x NA
Dibz International, Inc. NA DIB Z OT C P K US D United S ta tes 0. 00 0.0 NA NM NM - - NA
DigitalP os t Interactive, Inc. 6/30/2009 DG LP OT C B B US D United S ta tes 0. 06 4.6 1. 0 (1.4) NM 6. 7x - 7
DigitalT own, Inc. 8/31/2009 DG T W OT C B B US D United S ta tes 2. 00 54. 7 0. 0 (1.8) NM - - 3
Dolphin Digital Media , Inc. 6/30/2009 DP DM OT C B B US D United S ta tes 0. 49 26. 3 0. 6 (3.4) NM 46.9x - NA
E olith C o. Ltd. 12/31/2008 A041060 K OS E KR W S outh K orea 575 34. 9 15. 4 (3.6) -23. 6% 2. 4x - NA
E xtens ions , Inc. 6/30/2009 E XT I OT C P K US D United S ta tes 0. 25 11. 1 NM NM NM - - 2
F luid Mus ic C a nada , Inc. 6/30/2009 T S X :F MN TS X C AD United S ta tes 1. 90 91. 7 5. 3 (5.1) -95. 2% 16.4x - NA
F rogs ter Interactive P ictures AG 6/30/2009 FRG XT R A E UR G ermany 19. 90 74. 7 9. 6 (4.5) -47. 0% 7. 6x - NA
G ama nia Digita l E ntertainment C o., Ltd. 6/30/2009 6180 GTS M TWD T aiwa n 48. 85 228. 8 140.6 25. 1 17. 9% 1. 5x 8. 2x NA
G ameOn C o Ltd. 6/30/2009 3812 TS E JPY J a pan 88,400 95. 6 81. 9 20. 1 24. 5% 0. 3x 1. 0x NA
G eoS entric O yj 6/30/2009 G E O 1V HL S E E UR F inland 0. 05 65. 8 5. 4 (17. 4) NM 12.1x - 115
G iant Interactive G roup, Inc. 6/30/2009 GA NY S E US D C hina 8 1,730. 0 198.5 124.1 62. 5% - - 1, 570
G iga Media Ltd. 3/31/2009 G IG M Na s daqG S US D T aiwa n 4. 54 247. 5 183.6 NM NM 0. 9x - 751
G ravity C o., Ltd 6/30/2009 GR VY Na s daqG M US D S outh K orea 1. 60 44. 5 49. 1 16. 6 33. 9% - - 469
G ree, Inc. 6/30/2009 T S E : 3632 TS E JPY J a pan 5,040 2,523. 3 156.0 93. 7 60. 1% 15.4x 25. 7x NA
G ungHo O nline E ntertainment, Inc. 6/30/2009 3765 OS E JPY J a pan 221,000 283. 1 119.5 26. 6 22. 2% 2. 1x 9. 4x NA
HanbitS oft, Inc. 6/30/2009 A047080 K OS E KR W S outh K orea 3,560 65. 3 60. 7 1.4 2.3% 0. 9x 36. 6x NA
IAC /InterActiveC orp. 6/30/2009 IAC I Na s daqG S US D United S ta tes 19. 07 2,524. 9 1, 392. 3 52. 7 3.8% 0. 6x 14. 9x 3, 200
IAS E nergy, Inc. 4/30/2009 IAS A. E OT C B B US D C anada 0. 11 7.4 0. 0 (0.6) NM - - NA
is eemedia Inc. 3/31/2009 IE E T S XV C AD C anada 0. 14 6.6 1. 6 (5.0) NM 3. 6x - NA
J umbuck E nterta inment Limited 6/30/2009 AS X :J MB AS X AUD Aus tralia 0. 34 14. 5 16. 7 7.2 42. 8% 0. 5x 1. 1x 79
K AB Dis tribution Inc. 6/30/2009 T S X :K AB TS X C AD C anada 0 0.6 67. 9 4.0 5.8% - - NA
K ings oft C o. Ltd. 6/30/2009 3888 S E HK HK D C hina 8 1,058. 1 139.1 61. 4 44. 2% 7. 6x 17. 2x 2, 463
Lingo Media C orporation 6/30/2009 T S X V :LM T S XV C AD C anada 1. 00 11. 4 1. 2 (1.9) NM 8. 8x - NA
LiveW orld Inc. 6/30/2009 LVW D OT C P K US D United S ta tes 0. 04 1.3 10. 6 (0.1) -1.2% 0. 0x - NA
LookS mart, Ltd. 6/30/2009 L OO K Na s daqG M US D United S ta tes 1. 32 22. 6 56. 8 (4.4) -7.8% - - 90
Magnitude Information S ys tems Inc. 6/30/2009 MAG Y OT C B B US D United S ta tes 0. 01 4.1 0. 1 (2.5) NM - - 14
Mixi, Inc. 6/30/2009 2121 TS E JPY J a pan 737000. 00 1,270. 0 136.8 46. 2 33. 8% 8. 4x 24. 9x NA
Modern T imes G roup Mtg AB 6/30/2009 MT G B OM SEK S weden 325. 70 3,082. 3 1, 971. 4 302.9 15. 4% 1. 9x 12. 1x 2, 969
MO K O .mobi Limited 6/30/2009 MK B AS X AUD Aus tralia 0. 08 7.3 0. 7 (2.4) NM 9. 1x - NA
Myriad G roup AG 6/30/2009 MY R N SWX C HF S witzerland 4. 49 192. 5 63. 0 3.4 5.4% 3. 0x - 405
NE O W IZ G ames C orpora tion 12/31/2008 A095660 K OS E KR W S outh K orea 40500. 00 715. 5 207.3 55. 7 26. 8% 3. 4x 12. 7x NA
NetDragon W ebS oft, Inc. 6/30/2009 777 S E HK HK D C hina 5 349. 9 89. 3 25. 7 28. 7% 2. 3x 8. 0x 3, 109
Neteas e. com Inc. 6/30/2009 NT E S Na s daqG S US D C hina 37. 70 4,879. 4 472.4 297.4 63. 0% - - 3, 109
NeuLion Incorporated 6/30/2009 T S X :NLN TS X C AD C anada 0. 76 77. 2 21. 5 (13. 0) -60. 3% 3. 1x - 237
NeXplore C orporation 6/30/2009 NX P C OT C P K US D United S ta tes 1 44. 1 1. 7 (13. 3) NM 28.3x - NA
Ngi G roup Inc. 6/30/2009 2497 TS E JPY J a pan 30300. 00 42. 0 93. 0 6.9 7.4% - - NA
Northgate T echnologies L imited 6/30/2009 590057 BSE INR India 35. 55 25. 8 82. 9 (41. 5) -50. 0% 0. 3x - NA
O pen T ext C orp. 6/30/2009 OT E X Na s daqG S US D C anada 39. 53 2,219. 6 785.7 205.1 26. 1% 2. 9x 11. 0x 3, 411
O penwave S ys tems Inc. 6/30/2009 OP W V Na s daqG S US D United S ta tes 2. 75 229. 7 191.7 4.9 2.6% 0. 6x 24. 6x 590
P erfect W orld C o. , Ltd. 6/30/2009 PWRD Na s daqG S US D C hina 45. 11 2,218. 6 255.6 142.2 55. 6% 0. 7x 1. 3x 2, 096
P NI Digital Media Inc. 6/30/2009 T S X V :P N T S XV C AD C anada 1. 70 53. 5 21. 0 2.3 11. 0% 2. 5x 22. 3x NA
Q uepa s a C orp. 6/30/2009 QP S A OT C B B US D United S ta tes 1 17. 2 0. 2 (10. 6) NM - - 74
O AO R B C Information S ys tems 12/31/2007 R BCI R TS US D R us s ia 1. 60 222. 0 157.4 20. 6 13. 1% 0. 0x 0. 4x NA
S handa Interactive E nterta inment Ltd. 6/30/2009 S NDA Na s daqG S US D C hina 46. 03 3,095. 8 629.0 296.7 47. 2% - - 3, 124
S hutterfly, Inc. 6/30/2009 S FLY Na s daqG S US D United S ta tes 14. 51 369. 4 218.6 27. 3 12. 5% 1. 4x 11. 2x 514
S K C ommunications C o., Ltd. 12/31/2008 A066270 K OS E KR W S outh K orea 7800. 00 273. 7 192.7 12. 5 6.5% 1. 4x 21. 8x NA
S NAP Interactive, Inc. 6/30/2009 S TVI OT C B B US D United S ta tes 0 3.8 3. 5 0.9 27. 0% 0. 6x 2. 3x 11
S NM G loba l Holdings 9/30/2008 S NMN OT C P K US D United S ta tes 0. 00 0.0 2. 0 (0.7) -34. 8% 1. 1x - 33
S ocial Media V entures Inc. 12/31/2008 S MV I OT C P K US D United S ta tes 0 0.0 0. 1 (0.1) -60. 6% 4. 5x - NA
S ocialwis e, Inc. 6/30/2009 S C LW OT C B B US D United S ta tes 0. 58 25. 7 0. 0 (5.6) NM - - NA
S ohu. com Inc. 6/30/2009 S O HU Na s daqG S US D C hina 60. 85 2,332. 6 485.1 209.6 43. 2% 3. 8x 8. 7x 3, 197
S park Networks , Inc. 6/30/2009 L OV AME X US D United S ta tes 3 52. 7 50. 5 10. 8 21. 3% 1. 0x 4. 7x 183
S pectrumDNA, Inc. 6/30/2009 S P XA OT C B B US D United S ta tes 0 4.9 0. 1 (2.5) NM 39.9x - 7
T encent Holdings Ltd. 6/30/2009 700 S E HK HK D C hina 149 34, 855.4 1, 391. 6 680.3 48. 9% 27.6x - 6, 421
T he P arent C ompany 8/2/2008 K IDS . Q OT C P K US D United S ta tes 0. 01 0.2 112.0 (13. 5) -12. 0% 0. 2x - 347
T he9 Limited 12/31/2008 NC T Y Na s daqG S US D C hina 8. 03 201. 5 250.6 85. 5 34. 1% - - 1, 626
T heS treet. com, Inc. 3/31/2009 TS CM Na s daqG M US D United S ta tes 2. 86 87. 5 67. 0 1.9 2.9% 0. 3x 11. 8x 310
T ree.C om, Inc. 6/30/2009 TR E E Na s daqG M US D United S ta tes 7. 83 84. 6 216.6 (0.7) -0.3% 0. 4x - 700
Unis erve C ommunica tions C orp. 5/31/2009 T S X V :US S T S XV C AD C anada 0. 05 1.1 17. 1 (0.2) -1.0% 0. 2x - NA
United O nline Inc. 6/30/2009 UNT D Na s daqG S US D United S ta tes 8. 68 727. 7 949.8 203.2 21. 4% 1. 0x 4. 9x 1, 469
UOMO Media, Inc 7/31/2009 UO MO OT C B B US D C anada 0 8.6 0. 8 (0.4) -54. 2% 11.5x - NA
V alueC lick Inc. 6/30/2009 V C LK Na s daqG S US D United S ta tes 13 1,112. 9 563.6 99. 0 17. 6% 1. 7x 9. 9x 1, 189
V OIS , Inc. 6/30/2009 V O IS OT C B B US D United S ta tes 0 4.1 0. 0 (1.0) NM - - 4
W ebzen Inc. 6/30/2009 W ZE N Na s daqG M US D S outh K orea 2. 90 34. 4 23. 2 2.3 9.9% - - 328
W izzard S oftwa re C orporation 6/30/2009 W ZE AME X US D United S ta tes 0. 42 21. 2 5. 3 (4.5) -84. 9% 4. 2x - 110
W orlds . com Inc. 6/30/2009 W DDD OT C B B US D United S ta tes 0. 10 5.2 0. 1 (0.7) NM - - 1
W ynds torm C orpora tion NA W Y ND OT C P K US D United S ta tes 0. 10 1.8 NA NM NM - - NA
XING AG 6/30/2009 O 1B C XT R A E UR G ermany 36. 41 281. 1 58. 9 17. 0 28. 8% 3. 9x 13. 5x 246
Y D O nline C orp. 12/31/2007 A052770 K OS E KR W S outh K orea 7750. 00 97. 4 57. 4 12. 4 21. 6% 1. 9x 8. 6x NA
Y nk K orea Inc. 12/31/2008 A023770 K OS E KR W S outh K orea 4300. 00 19. 2 11. 9 1.3 10. 5% - - NA
High 34, 855.4 1,971. 4 680. 3 63. 0% 49.2x 36. 6x 6, 421
Low 0.0 0. 0 -41.5 -98. 9% - - 1
Average 810.8 161.2 39.0 6.1% 6.0x 11.4x 936
Median 44. 5 57.1 1. 7 12. 5% 1. 9x 9. 8x 246
Figure 1. Web 2.0 Universe Summary
Source. Capital IQ
3. Page 3
C A P I T A L M A R K E T S A C T I V I T Y (M & A A N D F I N A N C I N G )
Pace of deal signings slows: Total transaction value in the W eb 2.0 universe for October is $151.2 (vs. $125.2 million at
time of last publication). The week ending October 26 has brought four financings to the sector, bringing the total for
October to 20 transactions averaging $7.6 million each (vs. an average of $7.8 million last week). In comparison, total
capital raised in September was $232.8 million, averaging $9.0 million (26 deals); August was $232.8 million, averaging
$7.6 million (29 deals); and July (35 deals) $191.4 million, averaging $5.5 million.
Financing Activity Last Twelve Months
400.0 16.0
14.6
350.0 14.0
300.0 12.0
9.7
250.0 10.0
9.0
(US$m)
(US$m)
200.0 7.6 7.6 8.0
7.0 7.0 7.1
6.5 6.6
6.2
150.0 5.5 6.0
4.9
100.0 4.0
50.0 2.0
0.0 0.0
Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09
*May-09 includes $200m FB investment Total Average
Figure 2. Financings, Last Twelve Months
Source. Company reports
4. Page 4
Deal round-up for October (to date): The large deal highlights for the month include:
• DailyMotion – a French online video content provider – raised $25.3 million through a Series C financing.
• Yext – an online directory provider – raised $25 million.
• PopCap Games – a developer of casual games played on multiple types of devices – raised $22.5 million in its first
round of funding.
• Engine Yard – provider of managed hosting and deployment solutions for Ruby and Rails applications – raised $19
million in a Series C financing.
• Ecast Network – operator of a broadband touch screen network in the U.S. – raised $17 million in a follow-on
unattributed financing.
• HubSpot – provider of online enterprise marketing application – received $16 million in Series C financing.
• Jive Software – maker of enterprise collaboration and social community software – raised $12 million in a Series B
financing by returning VC fund, Sequoia.
All other deals in the month were in the amount of $10 million or less. For additional details on financings, see Figures 23
and 24 (at end of note).
Financing & M/A Summary - Last Three Months
200.0
180.0
160.0
140.0
120.0
Oct-09
(US$m)
100.0 Sep-09
Aug-09
80.0
60.0
40.0
20.0
0.0
DailyMotion
Jive Software
MediaMath
Mzinga
InXpo
NextBio
Reality Mobile
Boxee
HiveLive
Polyvore
Aviary
Mocapay
Fwix
Vantrix
Fizzback
Roblox
Linkedex
Twitter
MOG
Yext
RightsFlow
Skype
Zoove
RichRelevance
Ooyala
Edo Interactive
Jobvite
InnoCentive
Booyah
YuMe
Z2Live
Overtone
Greystripe
DailyBooth
iSyndica
OnLive
NowPublic
Ecast Network
Livebookings
Alliance Health Networks
MashLogic
Tiny Pictures
DataSync
Linksify
Dopplr
Unisfair
Fluther
VEVO
Mint
HubSpot
OneRiot
iSocket
KODA
Technorati
Turbine
Friends Reunited
Ensequence
iLike
Engine Yard
Traffiq
Balihoo
Vuclip
Fanbase
Vdopia
NeoEdge
OurStage
ViVu
Scoreloop
Tremor Media
Loomia
Plista
FourSquare
EduFire
ChessCube
Chango
Listia
Scout Labs
Conduit Labs
Gigpark
FeedRoom
Bill.com
Smith & Tinker
Spigit
Amie Street
TransGaming Inc.
PopCap Games
Riot Games
Sometrics
Imeem
Gamelab.com
Watercooler
Figure 3. Capital Market Activity, Last Three Months
Source. Company reports
5. Page 5
Social Networks the most active sector: Social Networks experienced the most financing activity among our W eb 2.0
sector categories in the past three months by number of transactions (11). Advertising continues to be among the highest
activity sectors with 10 deals in the past quarter. Gaming follows with nine transactions followed by Video (6) (Figure 4).
The $2.0 billion acquisition of Skype skews the dollars transacted to the SMS/Voice segment, while the $170 million
acquisition of Mint brings the Vertical Communities segment to the second highest total.
Capital Market Activity by Sector - Last Three Months
200.0
180.0
160.0
140.0
120.0
(US$m)
100.0
80.0
60.0
40.0
20.0
2,025.0 192.3 122.0 100.0 96.4 70.3 61.8 46.0 37.9 35.5 34.0 29.1 26.1 17.1 15.8 14.0 13.2 13.0 11.5 3.9 2.8 2.0 1.3 0.4
0.0
Comment/Reputation
Social Commerce
Communities
Gaming
Microblog
Collaboration
Enterprise
Mobile
Media
Online Learning
Music
SMS/Voice
Infrastructure
Search
Advertising/Mobile
Mobile Ad
Classified
Social Networks
Video
Advertising
Crowdsourced
Virtual World
Aggregation
Analytics
Vertical
Content
# companies
1 3 9 1 11 6 10 4 4 5 3 4 4 3 5 2 1 2 4 1 1 1 1 1
Figure 4. Capital Market Activity, by Sector, Last Three Months
Source. Company reports
6. Page 6
C A P I T A L M A R K E T S A C T I V I T Y (P R I C E P E R F O R M A N C E )
Web 2.0 index continues to outpace NASDAQ recovery: Our W eb 2.0 index (market-cap weighted) essentially mirrored
the performance of the NASDAQ composite index from mid-2008 until Q1/09. Since then, the index has diverged in a much
stronger recovery relative to the NASDAQ index (Figure 5).
Web 2.0 Index Price Performance
300
250
200
150
100
50
0
10/27/2008
11/10/2008
11/24/2008
12/8/2008
12/22/2008
1/5/2009
1/19/2009
2/2/2009
2/16/2009
3/2/2009
3/16/2009
3/30/2009
4/13/2009
4/27/2009
5/11/2009
5/25/2009
6/8/2009
6/22/2009
7/6/2009
7/20/2009
8/3/2009
8/17/2009
8/31/2009
9/14/2009
9/28/2009
10/12/2009
10/26/2009
Index: Web 2.0 (Market Cap) ^COMP - Share Pricing
Figure 5. Web 2.0 Price Performance
Source. Capital IQ
7. Page 7
Broad-based price improvement: Fourteen companies in our universe had positive stock price performances over the
past week (for stocks with prices greater than $1) (Figure 6), while 31 companies showed negative 1-week returns.
1 Week P rice P erformance
Fluid Mus ic Canada, Inc. 37.7%
Mix i, Inc. 15.2%
L ookS ma rt, Ltd. 10.2%
Webz en Inc. 9.5%
NEOWIZ G ames Corporation 9.3%
Openw ave S y s tems Inc. 8.7%
Ngi G roup Inc. 7.4%
OA O R B C Inf ormation S y s tems 6.7%
Y nk K orea Inc. 6.6%
A ctoz S oft Co., Ltd. 4.5%
G ree, Inc. 4.1%
Cy berplex Inc. 1.6%
G iant Interactive G roup, Inc. 0.7%
Perf ect World Co., Ltd. 0.3%
My riad G roup A G -0.2%
IA C/InterA ctiveCorp. -0.6%
Tree.Com, Inc. -0.9%
Modern Times G roup Mtg A B -1.0%
A Q Interactive, Inc. -1.2%
Changy ou.com Limited -1.3%
X ING A G -1.9%
G ameOn Co Ltd. -1.9%
CDC Corp. -2.0%
Northgate Technologies Limited -2.1%
G amania Digital Entertainment Co., Ltd. -2.3%
G ravity Co., Ltd -2.4%
PNI Digital Media Inc. -2.9%
DA DA S pA -2.9%
Frogs ter Interactive Pictures A G -2.9%
Open Tex t Corp. -3.4%
Quepas a Corp. -3.6%
United Online Inc. -3.9%
Y D Online Corp. -4.2%
Neteas e.com Inc. -4.2%
TheS treet.c om, Inc. -4.7%
Eolith Co. Ltd. -5.0%
S K Communica tions Co., Ltd. -5.0%
G igaMedia Ltd. -5.6%
S handa Interactive Entertainment Ltd. -6.8%
V alueClick Inc. -7.1%
S hutterf ly , Inc. -8.9%
The9 Limited -9.7%
Chines e G amer International -9.9%
HanbitS oft, Inc. -12.9%
S ohu.com Inc. -13.1%
-0.2 -0.1 0 0.1 0.2 0.3 0.4 0.5
Figure 6. 1-Week Price Performance
Source. Capital IQ
8. Page 8
P U B L I C C O M P A N Y I N D U S T R Y N E W S (P A R T N E R S H I P S , F I N A N C I A L R E S U L T S , N E W P R O D U C T S )
K ey Developments
C ompany Headline Notes
Open Text C orp. (Nas daqG S :OTE X) B ehr P roces s C orporation L aunches Newly E nhanced O pen T ext announced that B ehr P roces s C orporation has launched its newly enhanced B E HR . com s upported by
B E HR . com S upported by V ignette C ontent Management V ignette C ontent Management from O pen T ext C orp. V ignette W eb C ontent Management S olutions from O pen T ext
from O pen T ext provide advanced rich media management capabilities and a high-performance foundation for B E HR . com, enabling
deep interactivity and an eas ier, immers ive W eb s ite experience. Development utilizing Adobe F lex and F las h allows
B E HR .com to project large magazine-s tyle images and cinematic trans itions from page to page. B E HR . com als o
leverages the company's dynamic caching technology to pres ent a high volume of content while improving
performance that res ults in a great end-us er experience.
S hutterfly, Inc . (Nas daqG S : S FL Y) S hutterfly's P ro G allery S ervice Introduces Digital S hutterfly Inc. announced the addition of Digital Download to its P ro G allery s ervice, a s tore front for profes s ional
Download photographers to s ell their photos . W ith the new Digital Download feature, profes s ional photographers can now s ell
high res olution copies of their images to cus tomers directly from their P ro G allery account. T he company's P ro G allery
s ervice offers profes s ionals premium s ervice with web pres ence, top-quality profes s ional photo printing s ervices , full-
s ervice order proces s ing and fulfillment and world clas s cus tomer s ervice. P ro G allery photographers als o receive
online s ales reports , photo s torage, and image rights protection.
S ites earc h C orporation S ites earch C orporation Announces R es ignation of J ames S ites earch C orporation announced that on O ctober 19, 2009, Mr. J ames S . Dixon res igned as a member of the board
S . Dixon from the B oard of directors of the company.
The9 L imited (Nas daqG S :NC TY) T he9 L imited, Annual G eneral Meeting, O ct 20, 2009 T he9 L imited, Annual G eneral Meeting, O ct 20, 2009 Agenda: T o re-elect and appoint Davin Alexander Mackenzie, K a
K eung Y eung and C hao Y ong W ang an independent director (C las s II) of the C ompany, effective from the clos ing of
the Annual G eneral Meeting held on O ctober 20, 2009, to s erve for 3 year term ending at the 2012 Annual G eneral
Meeting or until his s ucces s or is duly elected and qualified.
Alpha C apital AG ; B igs tring C orp. V IP C onnectz US A, Inc. cancelled the acquis ition of V IP C onnectz US A, Inc. s igned a non-binding letter of intent to acquire B igs tring C orp. (O T C B B : B S G C ) in a revers e
(OTC B B : B S G C ); C hes tnut R idge B igs tring C orp. (O T C B B : B S G C ) in a revers e merger merger trans action on O ctober 20, 2008. Under the terms of the letter of intent, B igS tring will is s ue unregis tered s hares
P artners , L .P .; E xc alibur C apital trans action. of common s tock equal to 50% of the s um of the total number of s hares of B igS tring common s tock is s ued and
Management Inc .; Iroquois C apital, L P ; outs tanding plus the number of s hares of B igS tring common s tock available for is s uance upon the convers ion of
P enn Footwear C o.; Tudor Inves tment B igS tring’s outs tanding convertible notes and S eries A P referred S tock, in exchange for all of V IP C onnectz’s capital
C orporation; VIP C onnec tz US A, Inc .; s tock. After the clos ing of the trans action E dward J . W eaver, P res ident and C hief E xecutive O fficer of V IP C onnectz,
W halehaven C apital F und L imited will s erve as P res ident and C hief E xecutive O fficer of B igS tring. Darin Myman, P res ident and C hief E xecutive O fficer of
B igS tring, will become V ice P res ident of S trategic Development of B igS tring. T he trans action is s ubject to s everal
conditions , including execution of definitive agreement.
Modern Times G roup Mtg AB (OM:MTG Modern T imes G roup Mtg AB R eports E arnings R es ults Modern T imes G roup Mtg AB reported earnings res ults for the third quarter and firs t nine months of 2009. F or the
B) for the T hird Q uarter and F irs t Nine Months of 2009 quarter, net profit was S E K 254 million, compared with S E K 405 million a year earlier. P retax profit came in at S E K 336
million agains t S E K 595 million. O perating income decreas ed to S E K 377 million from S E K 574 million. Net s ales ros e
7% to S E K 3. 177 billion.
F or the firs t nine months of 2009, the company reported a net profit of S E K 836 million agains t S E K 1. 225 billion in the
previous year. T he figure excludes S E K 1. 173 billion of income from the dis continued DT V G roup in 2008. P retax profit
declined to S E K 1. 096 billion from S E K 1. 79 billion. O perating income s tood at S E K 1. 199 billion agains t S E K 1.753
billion. S ales increas ed 8% to S E K 10. 097 billion.
DigitalPos t Interac tive, Inc . DigitalP os t Interactive S igns C ontracts with T wo P hoto DigitalP os t Interactive Inc. announced the s igning of new contracts with two photo companies .
(OTC B B : DG L P ) C ompanies
The9 L imited (Nas daqG S :NC TY) C oughlin S toia G eller R udman & R obbins L L P F iles C oughlin S toia G eller R udman & R obbins L L P announced that a clas s action has been commenced in the United
C las s Action S uit agains t T he9, L td S tates Dis trict C ourt for the S outhern Dis trict of New Y ork on behalf of purchas ers of American Depos itary S hares of
T he9 L imited between November 15, 2006 and J uly 15, 2009, inclus ive (the 'C las s P eriod'), agains t T he9 and certain
of the officers and/or directors of T he9 for violations of the S ecurities E xchange Act of 1934 (the 'E xchange Act'). T he
complaint charges T he9 and certain directors and officers of T he9 with violations of the E xchange Act. T he9 is an
online game operator and developer in C hina. According to the complaint, during the C las s P eriod, the C ompany,
directly and through its affiliates and/or s ubs idiaries , operated licens ed mas s ively multiplayer online role-playing games
and advanced cas ual games in C hina, including W orld of W arcraft, S oul of T he Ultimate Nation, G ranado E s pada, E A
S P OR T S F IF A O nline 2, and Atlantica. It als o operated other licens ed games in mainland C hina, including Audition 2
and F ield of Honor. P laintiff s eeks to recover damages on behalf of all purchas ers of T he9 ADS s during the C las s P eriod
Figure 7a. Key Developments
Source. Capital IQ
9. Page 9
K ey Developments
C ompany Headline Notes
OAO R B C Information S ys tems O AO R B C Information S ys tems P rovides R evenues O AO R B C Information S ys tems provides revenues outlook for the full year of 2009. R evenue of company is expected
(R TS : R B C I) O utlook for the F ull Y ear of 2009 to decreas e 26% on the year to R UB 3. 9 billion in 2009.
Unis erve C ommunic ations C orp. Unis erve C ommunications C orp. Announces E xecutive Unis erve C ommunications C orp. announced that W illiam S pratt has res igned as the C E O and a Director of the
(TS XV: US S ) C hanges company. Michael S chmidt who has s erved as the company's P res ident has agreed to join the B oard and take on the
expanded role as C E O .
Neteas e.c om Inc . (Nas daqGS : NTE S ) Neteas e.com Inc. to L aunch G ame.163. com Neteas e.com Inc. is to launch online game cons ulting webs ite game. 163. com. V ia the move, NetE as e. com aims to
enhance its s aying right in the indus try, gues s ed indus try watchers , adding that the launch of the s ite will als o bring
advertis ing revenues for NetE as e. com. T he new s ite will focus on indus try news and product news and promote online
games like W orld of W arcraft (W oW ) and J X 3 Online at important pos itions . However, the company made no
comment on the is s ue.
W izzard S oftware C orporation W izzard Media Announces E ight New P odcas t W izzard Media announced eight new podcas t companion iP hone(T M) Apps approved and available for s ale in the App
(AME X: WZE ) C ompanion Apps S tore. T he newly approved Apps are iP hone companion Apps for popular podcas ts offering convenient acces s to the
podcas t, s how extras , bonus content and new s ocial communication features . T his brings the total number of W izzard
Apps to 58 with 34 awaiting approval and another 20 to be uploaded for anticipated approval in O ctober. T he newly
releas ed Apps include, get R eal is currently the #58 podcas t in the B us ines s s ection of iT unes (R ).
Quepas a C orp. (OTC B B : QP S A) Q uepas a Introduces New Dis tributed S ocial Media Q uepas a C orp. announced the introduction of a new ad product revenue platform, Dis tributed S ocial Media (DS M).
R evenue P latform Q uepas a's DS M is a new viral ad product that allows Q uepas a to leverage not only its s ocial network, but als o all other
s ocial networking s ites . T his new approach will allow advertis ers and brands to target and dis tribute their marketing
mes s age acros s all s ocial media s ites through Q uepas a. com. T hes e us er-generated campaigns are extremely viral
and create great word-of-mouth marketing for the brands by motivating us ers to s hare content with friends and
colleagues acros s all of the popular s ocial media s ites . T he effect for brands is that they are able to have a cons is tent
brand mes s age delivered to a broad us er bas e at the lowes t equivalent cos t per impres s ion compared to mos t any
other forms of advertis ing. At the s ame time, Q uepas a's DS M addres s es the bigges t problem typically faced by brands
when trying to launch s ocial network driven campaigns in terms of achieving meaningful us er engagement while
providing real time R O I metrics . As part of this new s trategy, Q uepas a intends to expand its s ales efforts for both the Q u
B eyond C ommerc e, Inc . B eyond C ommerce, Inc. Accepts R es ignation of W endy O n O ctober 22, 2009, B eyond C ommerce, Inc. accepted the res ignation, dated
(OTC B B : B YOC ) B orow-J ohns on as P res ident O ctober 19, 2009, of W endy B orow-J ohns on as P res ident of B rand Management. Ms . J ohns on will continue with the
C ompany as a S pecial Advis or and C ons ultant as it pertains to the C ompany's communications and media needs .
S ites earc h C orporation S ites earch C orporation announced delayed annual 10-K O n 10/23/2009, S ites earch C orporation announced that they will be unable to file their next 10-K by the deadline
filing required by the S E C .
G iant Interac tive G roup, Inc . G iant Interactive P artners with As trum Nival to L icens e G iant Interactive G roup, Inc. announced that it s igned an agreement with As trum Nival, L L C to grant a licens e to
(NYS E : G A) ZT O nline in R us s ia As trum Nival to operate ZT Online, G iant's flags hip 2D mas s ively multiplayer online role playing game ('MMO R P G '), in
the R us s ian F ederation and other R us s ian s peaking territories . ZT O nline is G iant Interactive's firs t internally-
developed 2D free-to-play MMO R P G . S ince its commercial launch, ZT O nline has reached peak concurrent us er
(P C U) levels over 2. 1 million and was voted the mos t popular game in C hina in 2006 according to International Data
C orporation. As a free-to-play game, revenues are derived from in-game purchas es of virtual items and s ervices . ZT
O nline is currently operated in Mainland C hina by the C ompany and in Hong K ong, Macau, T aiwan, Malays ia and
S ingapore via a licens e to L ager Network. Additionally, G iant has als o granted a licens e to V inaG ame S oftware
S ervice J oint S tock C ompany, or V inaG ame, to operate ZT O nline in V ietnam.
C hangyou.c om L imited C hangyou. com L imited R eports Unaudited C ons olidated C hangyou. com L imited reported unaudited cons olidated earnings res ults for the third quarter and nine months ended
(Nas daqG S :C YOU) E arnings R es ults for the T hird Q uarter and Nine Months S eptember 30, 2009. F or the quarter, the company's total revenues were $68, 684, 000 agains t $54, 604, 000 a year ago.
E nded S eptember 30, 2009; P rovides E arnings G uidance T he increas es were mainly due to increas ed popularity of the company's flags hip game, T LB B . O perating profit was
for the F ourth Q uarter of 2009 $42, 288, 000 agains t $32,474, 000 a year ago. Income before income tax expens e was $43,288, 000 agains t
$32, 791, 000 a year ago. Net income was $37, 794, 000 agains t $32, 084,000 a year ago. Diluted net income per ADS
was $0. 71 agains t $0. 68 a year ago. Non-G AAP operating profit was $45, 842, 000 agains t $33, 725, 000 a year ago.
Non-G AAP net income was $41, 348, 000 agains t $33, 335, 000 a year ago. Non-G AAP diluted net income per ADS was
$0. 77 agains t $0. 70 a year ago. O perating cas h flow was a net inflow of $46. 2 million.
F or the nine months , the company's total revenues were $196, 887, 000 agains t $143, 455, 000 a year ago. O perating
profit was $119, 624, 000 agains t $81, 537, 000 a year ago. Income before income tax expens e was $122, 170, 000
agains t $81, 705, 000 a year ago. Net income was $105, 826, 000 agains t $78, 914, 000 a year ago. Diluted net income per
T he company es timates total revenues for the fourth quarter of 2009 to be between $69. 0 million and $71. 0 million. Non
S ohu.c om Inc . (Nas daqG S : S OHU) S ohu. com Inc. R eports Unaudited C ons olidated E arnings S ohu. com Inc. reported unaudited cons olidated earnings res ults for the third quarter and nine months ended
R es ults for the T hird Q uarter and Nine Months E nded S eptember 30, 2009. F or the quarter, the company reported net income attributable to company of $37, 354, 000 or
S eptember 30, 2009; P rovides E arnings G uidance for the $0. 88 per s hare on total revenue of $136, 585, 000 agains t net income attributable to company was $40, 261, 000 or
F ourth Q uarter of 2009 $1. 02 per s hare on total revenue of $120, 676, 000 in the s ame period of las t year. O perating profit was $52, 953, 000
agains t $43, 758, 000 in the s ame period of las t year. Income before income tax expens e was $54, 102, 000 agains t
$45, 230, 000 in the s ame period of las t year. Income from continuing operations was $47, 080, 000 agains t $40, 238, 000
in the s ame period of las t year. As per non-G AAP , net income attributable to company was $40, 921, 000 or $0. 96 per
s hare on total revenue of $136, 585, 000 agains t net income attributable to company was $42, 822, 000 or $1. 08 per
s hare on total revenue of $120, 676, 000 in the s ame period of las t year. As per non-G AAP , operating profit was
$57, 077, 000 agains t $46,319, 000 in the s ame period of las t year.
Figure 7b. Key Developments
Source. Capital IQ
10. Page 10
K ey Developments
C ompany Headline Notes
OAO R B C Information S ys tems O AO R B C Information S ys tems P rovides R evenues O AO R B C Information S ys tems provides revenues outlook for the full year of 2009. R evenue of company is expected
(R TS : R B C I) O utlook for the F ull Y ear of 2009 to decreas e 26% on the year to R UB 3. 9 billion in 2009.
Unis erve C ommunic ations C orp. Unis erve C ommunications C orp. Announces E xecutive Unis erve C ommunications C orp. announced that W illiam S pratt has res igned as the C E O and a Director of the
(TS XV: US S ) C hanges company. Michael S chmidt who has s erved as the company's P res ident has agreed to join the B oard and take on the
expanded role as C E O .
Neteas e.c om Inc . (Nas daqGS : NTE S ) Neteas e.com Inc. to L aunch G ame.163. com Neteas e.com Inc. is to launch online game cons ulting webs ite game. 163. com. V ia the move, NetE as e. com aims to
enhance its s aying right in the indus try, gues s ed indus try watchers , adding that the launch of the s ite will als o bring
advertis ing revenues for NetE as e. com. T he new s ite will focus on indus try news and product news and promote online
games like W orld of W arcraft (W oW ) and J X 3 Online at important pos itions . However, the company made no
comment on the is s ue.
W izzard S oftware C orporation W izzard Media Announces E ight New P odcas t W izzard Media announced eight new podcas t companion iP hone(T M) Apps approved and available for s ale in the App
(AME X: WZE ) C ompanion Apps S tore. T he newly approved Apps are iP hone companion Apps for popular podcas ts offering convenient acces s to the
podcas t, s how extras , bonus content and new s ocial communication features . T his brings the total number of W izzard
Apps to 58 with 34 awaiting approval and another 20 to be uploaded for anticipated approval in O ctober. T he newly
releas ed Apps include, get R eal is currently the #58 podcas t in the B us ines s s ection of iT unes (R ).
Quepas a C orp. (OTC B B : QP S A) Q uepas a Introduces New Dis tributed S ocial Media Q uepas a C orp. announced the introduction of a new ad product revenue platform, Dis tributed S ocial Media (DS M).
R evenue P latform Q uepas a's DS M is a new viral ad product that allows Q uepas a to leverage not only its s ocial network, but als o all other
s ocial networking s ites . T his new approach will allow advertis ers and brands to target and dis tribute their marketing
mes s age acros s all s ocial media s ites through Q uepas a. com. T hes e us er-generated campaigns are extremely viral
and create great word-of-mouth marketing for the brands by motivating us ers to s hare content with friends and
colleagues acros s all of the popular s ocial media s ites . T he effect for brands is that they are able to have a cons is tent
brand mes s age delivered to a broad us er bas e at the lowes t equivalent cos t per impres s ion compared to mos t any
other forms of advertis ing. At the s ame time, Q uepas a's DS M addres s es the bigges t problem typically faced by brands
when trying to launch s ocial network driven campaigns in terms of achieving meaningful us er engagement while
providing real time R O I metrics . As part of this new s trategy, Q uepas a intends to expand its s ales efforts for both the Q u
B eyond C ommerc e, Inc . B eyond C ommerce, Inc. Accepts R es ignation of W endy O n O ctober 22, 2009, B eyond C ommerce, Inc. accepted the res ignation, dated
(OTC B B : B YOC ) B orow-J ohns on as P res ident O ctober 19, 2009, of W endy B orow-J ohns on as P res ident of B rand Management. Ms . J ohns on will continue with the
C ompany as a S pecial Advis or and C ons ultant as it pertains to the C ompany's communications and media needs .
S ites earc h C orporation S ites earch C orporation announced delayed annual 10-K O n 10/23/2009, S ites earch C orporation announced that they will be unable to file their next 10-K by the deadline
filing required by the S E C .
G iant Interac tive G roup, Inc . G iant Interactive P artners with As trum Nival to L icens e G iant Interactive G roup, Inc. announced that it s igned an agreement with As trum Nival, L L C to grant a licens e to
(NYS E : G A) ZT O nline in R us s ia As trum Nival to operate ZT Online, G iant's flags hip 2D mas s ively multiplayer online role playing game ('MMO R P G '), in
the R us s ian F ederation and other R us s ian s peaking territories . ZT O nline is G iant Interactive's firs t internally-
developed 2D free-to-play MMO R P G . S ince its commercial launch, ZT O nline has reached peak concurrent us er
(P C U) levels over 2. 1 million and was voted the mos t popular game in C hina in 2006 according to International Data
C orporation. As a free-to-play game, revenues are derived from in-game purchas es of virtual items and s ervices . ZT
O nline is currently operated in Mainland C hina by the C ompany and in Hong K ong, Macau, T aiwan, Malays ia and
S ingapore via a licens e to L ager Network. Additionally, G iant has als o granted a licens e to V inaG ame S oftware
S ervice J oint S tock C ompany, or V inaG ame, to operate ZT O nline in V ietnam.
C hangyou.c om L imited C hangyou. com L imited R eports Unaudited C ons olidated C hangyou. com L imited reported unaudited cons olidated earnings res ults for the third quarter and nine months ended
(Nas daqG S :C YOU) E arnings R es ults for the T hird Q uarter and Nine Months S eptember 30, 2009. F or the quarter, the company's total revenues were $68, 684, 000 agains t $54, 604, 000 a year ago.
E nded S eptember 30, 2009; P rovides E arnings G uidance T he increas es were mainly due to increas ed popularity of the company's flags hip game, T LB B . O perating profit was
for the F ourth Q uarter of 2009 $42, 288, 000 agains t $32,474, 000 a year ago. Income before income tax expens e was $43,288, 000 agains t
$32, 791, 000 a year ago. Net income was $37, 794, 000 agains t $32, 084,000 a year ago. Diluted net income per ADS
was $0. 71 agains t $0. 68 a year ago. Non-G AAP operating profit was $45, 842, 000 agains t $33, 725, 000 a year ago.
Non-G AAP net income was $41, 348, 000 agains t $33, 335, 000 a year ago. Non-G AAP diluted net income per ADS was
$0. 77 agains t $0. 70 a year ago. O perating cas h flow was a net inflow of $46. 2 million.
F or the nine months , the company's total revenues were $196, 887, 000 agains t $143, 455, 000 a year ago. O perating
profit was $119, 624, 000 agains t $81, 537, 000 a year ago. Income before income tax expens e was $122, 170, 000
agains t $81, 705, 000 a year ago. Net income was $105, 826, 000 agains t $78, 914, 000 a year ago. Diluted net income per
T he company es timates total revenues for the fourth quarter of 2009 to be between $69. 0 million and $71. 0 million. Non
S ohu.c om Inc . (Nas daqG S : S OHU) S ohu. com Inc. R eports Unaudited C ons olidated E arnings S ohu. com Inc. reported unaudited cons olidated earnings res ults for the third quarter and nine months ended
R es ults for the T hird Q uarter and Nine Months E nded S eptember 30, 2009. F or the quarter, the company reported net income attributable to company of $37, 354, 000 or
S eptember 30, 2009; P rovides E arnings G uidance for the $0. 88 per s hare on total revenue of $136, 585, 000 agains t net income attributable to company was $40, 261, 000 or
F ourth Q uarter of 2009 $1. 02 per s hare on total revenue of $120, 676, 000 in the s ame period of las t year. O perating profit was $52, 953, 000
agains t $43, 758, 000 in the s ame period of las t year. Income before income tax expens e was $54, 102, 000 agains t
$45, 230, 000 in the s ame period of las t year. Income from continuing operations was $47, 080, 000 agains t $40, 238, 000
in the s ame period of las t year. As per non-G AAP , net income attributable to company was $40, 921, 000 or $0. 96 per
s hare on total revenue of $136, 585, 000 agains t net income attributable to company was $42, 822, 000 or $1. 08 per
s hare on total revenue of $120, 676, 000 in the s ame period of las t year. As per non-G AAP , operating profit was
$57, 077, 000 agains t $46,319, 000 in the s ame period of las t year.
Figure 7c. Key Developments
Source. Capital IQ