09 10 27 Web 2.0 Weekly

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

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

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

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

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

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

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

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

K ey Developments
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

K ey Developments








Figure 7c. Key Developments
Source. Capital IQ

K ey Developments - c ontinued








Figure 7d. Key Developments
Source. Capital IQ

VALUATION
Online Gaming companies lead market-cap charts: Fifteen companies in our W eb 2.0 universe top US$1 billion in
market capitalization (Figure 8). Fifty-eight of the 89 companies have market caps under US$100 million, with 35 under
US$25 million. Online gaming companies dominate the top of the list, led by Tencent Holdings (SEHK:700) with a market
cap of approximately US$35 billion.

Market C ap (US D m)
Tencent Holdings Ltd. 34855. 4
Neteas e. com Inc. 4879. 4
S handa Interactive Entertainment Ltd. 3095. 8
Modern Times G roup Mtg A B 3082. 3
IA C/InterA ctiveCorp. 2524. 9
G ree, Inc. 2523. 3
S ohu. com Inc. 2332. 6
Open Tex t Corp. 2219. 6
Perf ect World Co. , Ltd. 2218. 6
G iant Interactive G roup, Inc. 1730. 0
Changy ou. com Limited 1721. 5
Mix i, Inc. 1270. 0
V alueClick Inc. 1112. 9
Chines e G amer International 1110. 0
K ings of t Co. Ltd. 1058. 1
United Online Inc. 727. 7
NEOWIZ G ames Corporation 715. 5
S hutterf ly , Inc. 369. 4
NetDragon WebS of t, Inc. 349. 9
G ungHo Online Entertainment, Inc. 283. 1
XING A G 281. 1
S K Communications Co. , Ltd. 273. 7
CDC Corp. 262. 8
G igaMedia Ltd. 247. 5
Openw ave S y s tems Inc. 229. 7
G amania Digital Entertainment Co., 228. 8
OA O R B C Inf ormation S y s tems 222. 0
The9 Limited 201. 5
My riad G roup A G 192. 5
DA DA S pA 177. 4
A ctoz S of t Co. , Ltd. 118. 3
Y D Online Corp. 97. 4
G ameOn Co Ltd. 95. 6
Fluid Mus ic Canada, Inc. 91. 7
TheS treet.com, Inc. 87. 5
Tree. Com, Inc. 84. 6
Cy berplex Inc. 77. 9
NeuLion Incorporated 77. 2
Frogs ter Interactive Pictures A G 74. 7
G eoS entric Oy j 65. 8
HanbitS of t, Inc. 65. 3
DigitalTow n, Inc. 54. 7
PNI Digital Media Inc. 53. 5
S park Netw orks , Inc. 52. 7
G ravity Co., Ltd 44. 5
NeXplore Corporation 44. 1
Ngi G roup Inc. 42. 0
DXN Holdings B hd 40. 9
Eolith Co. Ltd. 34. 9
Webz en Inc. 34. 4
A Q Interactive, Inc. 29. 4
Dolphin Digital Media, Inc. 26. 3
Northgate Technologies Limited 25. 8
S ocialw is e, Inc. 25. 7
LookS mart, Ltd. 22. 6
Wiz z ard S of tw are Corporation 21. 2
Y nk K orea Inc. 19. 2
Quepas a Corp. 17. 2
A cceleriz e New Media, Inc. 15. 4
J umbuck Entertainment Limited 14. 5
Lingo Media Corporation 11. 4
Ex tens ions , Inc. 11. 1
UOMO Media, Inc 8. 6
IA S Energy , Inc. 7. 4
MOK O. mobi Limited 7. 3
is eemedia Inc. 6. 6
CornerWorld Corporation 5. 7
B right Things plc 5. 4
Worlds . com Inc. 5. 2
B ey ond Commerce, Inc. 5. 1
S pectrumDNA , Inc. 4. 9
DigitalPos t Interactive, Inc. 4. 6
V OIS , Inc. 4. 1
Magnitude Inf ormation S y s tems Inc. 4. 1
S NA P Interactive, Inc. 3. 8
B roadWebA s ia Inc. 2. 5
B igs tring Corp. 2. 0
Wy nds torm Corporation 1. 8
LiveWorld Inc. 1. 3
B etaw ave Corporation 1. 2
Unis erve Communications Corp. 1. 1
CLICK ER Inc. 0. 9
K A B Dis tribution Inc. 0. 6
A s s ociated Media Holdings Inc. 0. 4
The Parent Company 0. 2
China G atew ay Corporation 0. 0
S NM G lobal Holdings 0. 0
Dibz International, Inc. 0. 0
S ocial Media V entures Inc. 0. 0
0 500 1, 000 1,500 2, 000 2, 500 3, 000 3, 500 4, 000

Figure 8. Market Cap Ranking
Source. Capital IQ

TEV/Revenue (LTM) averages 6.1x: The overall average TEV/Revenue (LTM) multiple for our group is 6.1x (vs. 4.6x last
week) (Figure 9). W ith considerable price appreciation among some of the higher value names in the week, we now see
five companies (vs. three last week) trading above 25x revenue – Bigstring Corp. (OTCBB:BSGC) at 49.2x, Dolphin Digital
Media, Inc. (OTCBB:DPDM) at 46.9x, SpectrumDNA, Inc. (OTCBB:SPXA) at 39.9x, NexPlore Corporation (OTCPK:NXPC)
at 28.3x, and Tencent Holdings Ltd. (SEHK:700) at 27.6x. The median of 1.9x is on par with last week’s multiple. Note that
we exclude multiples greater than 50x. Twenty-nine companies have multiples under 1.5x.

T E V/L T M R evenue (x)

60. 0

49.2
50. 0 46.9

39.9
40. 0

30. 0 28.3
27.6

20. 0
16.416.8
15.4
12.6
12.1
11.5
8.8 9.1
10. 0
A verage, 6.1 7.6 7.6 8.4
6.0 6.7
4.2 4.5 4.6
3.1 3.4 3.6 3.8 3.9
2.3 2.4 2.4 2.5 2.9 3.0
1.0 1.0 1.1 1.4 1.4 1.5 1.5 1.7 1.9 1.9 2.1
0.0 0.0 0.0 0.10.2 0.2 0.3 0.3 0.3 0.4 0.4 0.5 0.6 0.6 0.6 0.6 0.7 0.7 0.7 0.8 0.9 0.9 0.9 0.9
0. 0

NE O WIZ G ames C orporation
J umbuc k E nterta inment L imited

MO K O .mobi L imited
UO MO Media, Inc
C LIC K E R Inc.

G a mania Digital E ntertainment C o.,

G ungHo O nline E ntertainment, Inc.

P N I Digital Media Inc.

C hines e G amer Interna tional
U nis erve C ommunications C orp.
O AO R B C Information S y s tems

N orthgate T echnologies L imited

DXN Holdings B hd

C hangy ou.com L imited
G a meO n C o Ltd.

T ree.C om, Inc.

C DC C orp.

B ey ond C ommerce, Inc .

S K C ommunica tions C o., Ltd.

DigitalP os t Intera ctive, Inc.

F luid Mus ic C a nada , Inc.

Dolphin Digital Media, Inc.
T he P a rent C ompany

Modern T imes G roup Mtg AB

G eoS entric O y j
S N M G loba l Holdings

NeuLion Inc orporated
C ornerWorld C orporation

Lingo Media C orporation

NeX plore C orporation
T heS treet.com, Inc .

S NAP Intera ctive, Inc .

United O nline Inc .

O pen T ex t C orp.

S pec trumDNA, Inc .
C hina G atewa y C orporation

AQ Intera ctive, Inc .

IAC /InterAc tiveC orp.

C y berplex Inc .

G igaMedia Ltd.
S pa rk N etwork s , Inc .

V alueC lic k Inc .
Y D O nline C orp.

NetDra gon WebS oft, Inc .

E olith C o. Ltd.

is eemedia Inc .
S ohu.com Inc .

Mix i, Inc .

As s ociated Media Holdings Inc .
G ree, Inc .

T encent Holdings Ltd.
XIN G AG

F rogs ter Intera ctiv e P ic tures AG
L iveWorld Inc .

O penwave S y s tems Inc .

P erfect World C o. , Ltd.

H anbitS oft, Inc .

Y nk K orea Inc .

S ocia l Media V entures Inc .

B igs tring C orp.
My riad G roup AG
S hutterfly , Inc .

Acceleriz e New Media , Inc .

K ings oft C o. Ltd.
DADA S pA
Ac toz S oft C o. , Ltd.

Wiz z ard S oftware C orporation

Figure 9. TEV/Revenue Ranking
Source. Capital IQ

TEV/Revenue (LTM) by country/exchange: W e have also calculated multiples based on where the companies are listed
or domiciled. Figure 10 shows the average TEV/Revenue multiples by stock exchange. The OTCBB has the largest
number of companies (18), trading at an average multiple of 16.3x (vs. 8.1x last week). On a geographic basis, the United
States has the most companies (38), trading at an average of 8.7x revenue (vs. 5.0x last week) (Figure 11). Ten of the
companies are Canadian (average 4.1x revenue).

Average TEV/LTM Revenue - By Exchange Average TEV/LTM Revenue - By Country
18.0 16.3 14.0
12.1
16.0
12.0
14.0 12.5
12.0 12.1 10.0
10.0 8.7
8.0
(x)

9.2 8.0
(x)

8.0
6.7 6.7 6.0 6.4 5.7
6.0 6.0 5.7 5.3 4.8
4.83.8 4.1
4.0 3.0 2.6 2.1 4.0
1.9 1.9 1.8 0.9 0.7 3.0
2.0 0.4 0.3 1.9 1.8 0.9 0.7
2.0
0.0 0.0 0.00.0 0.7 0.3
OTCPK
OTCBB

GTSM

NasdaqGM
SEHK
HLSE

TSE

OSE

NasdaqGS
KOSE
CM

RTS
OM

0.0 0.0 0.0 0.0
TSX

XTRA

AMEX

KLSE

BSE

AIM
NYSE
SWX
TSXV
ASX

Grand Total
Germany
Finland
United
China

Japan

Canada

Malaysia

Hong Kong
India
Russia

United
Italy
South
Taiwan

Australia

Switzerland
Sweden

# Companies 18 3 1 2 4 11 5 2 2 4 1 2 1 1 14 6 1 1 5 1 1 1 1
# Companies 1 38 10 3 2 6 2 10 1 1 8 1 1 1 1 1 1 88

Figures 10 & 11. TEV/Revenue Ranking (Exchange, Country)
Source. Capital IQ

TEV/EBITDA (LTM) averages 11.8x: The average multiple for the 35 companies with positive EBITDA (and multiples
under 100x) is 11.8x LTM EBITDA (vs. 12.1x last week), led by HanbitSoft, Inc. (KOSE:A047080) 36.6x multiple (Figure
12). Ten companies have EBITDA multiples under 7x. The median multiple is 9.9x (vs. 10.5x last week).

T E V/L T M E B IT DA (x)

40. 0
36. 6

35. 0
29. 9
30. 0
25. 7
24. 6 24. 9
25. 0
21. 8 22. 3

20. 0 17. 2
14. 6 14. 9
15. 0 13. 5
A verage, 11.8 11. 8 12. 1 12. 7
11. 0 11. 2
9. 8 9. 9 10. 3
10. 0 8. 0 8. 2 8. 6 8. 7 9. 4
7. 1
6. 0
4. 7 4. 9 5. 0
5. 0 3. 3
2. 3
0. 4 1. 0 1. 1 1. 3
0. 0

NE O WIZ G ames C orporation
J umbuck E ntertainment L imited

G amania Digital E ntertainment C o. , Ltd.

G ungH o O nline E ntertainment, Inc .

P NI Digital Media Inc .

C hines e G amer International
O AO R B C Information S y s tems

DXN Holdings B hd

C hangy ou. c om L imited
G ameO n C o L td.

C DC C orp.

S K C ommunic ations C o. , Ltd.
S NAP Interac tive, Inc .

U nited O nline Inc .

O pen T ex t C orp.

T heS treet. c om, Inc .
S park Network s , Inc .

C yberplex Inc.

NetDragon WebS oft, Inc.

Y D O nline C orp.

S ohu. c om Inc .

V alueC lic k Inc .

IAC /InterAc tiveC orp.

Mix i, Inc .

G ree, Inc .
XING AG
P erfec t World C o. , L td.

Y nk K orea Inc.

O penwave S y s tems Inc.

H anbitS oft, Inc.
S hutterfly , Inc.

K ings oft C o. L td.
DADA S pA
Actoz S oft C o. , L td.

Figure 12. TEV/EBITDA Ranking
Source. Capital IQ

TEV/EBITDA (LTM) by country/exchange: Figure 13 shows the average TEV/EBITDA multiples by stock exchange. The
OTCBB has the largest number of companies (18), trading at an average multiple of 2.3x. On a geographic basis, the
United States has the most companies (38), trading at an average of 10.5x EBITDA (Figure 14). Ten of the companies are
Canadian (average 9.0x EBITDA).

Average TEV/LTM EBITDA - By Exchange Average TEV/LTM EBITDA - By Country
25.0 22.3 25.0

20.0 19.1
20.0
19.1 16.6
15.0 17.2
16.6 15.0
(x)

13.512.6 15.2
(x)

12.1 11.8 13.5 13.1
10.0 10.7 9.4 12.1 10.5
10.0 10.3 9.0
7.1
5.0 6.0 5.0 4.7
2.3 7.1
1.1 0.4 5.0 5.0
0.0 0.4
OTCBB
GTSM

NasdaqGM
TSE

KOSE

SEHK

NasdaqGS

OSE

RTS

1.1
OM

CM
XTRA

TSX

KLSE

AMEX
TSXV

ASX

0.0 0.0
Germany
Japan

Canada

United

Hong Kong

China

Malaysia

Russia
Italy
South
Korea

States
Taiwan

Australia
Sweden

Switzerland

# Companies 4 2 5 6 2 3 1 5 14 1 1 4 1 2 18 2 1
# Companies 3 8 6 2 10 1 38 1 10 1 1 2 1 1

Figures 13 & 14. TEV/EBITDA Ranking (Exchange, Country)
Source. Capital IQ

P/E (LTM) averages 19.0x: The average multiple for the 33 companies with positive earnings (and multiples under 100x)
is 19.0x LTM EPS (vs. 18.8x last week), led by Tencent Holdings Ltd. (SEHK:700) with a 71.2x multiple (Figure 15).
Thirteen companies have P/E multiples under 10x. The median is 11.9x.

P /E L T M (x)

80.0
71.2
70.0
61.2 61.7
60.0
53.5

50.0
39.4
40.0 37.0 37.2

28.9
30.0

A verage, 19.0 19.7 20.0 21.1
20.0 16.7
13.8 14.3 14.4 14.7
11.6 11.8 11.9
9.5 9.8 10.3
10.0 6.7 6.8 7.0
4.1
2.1 2.2 2.3 2.8 3.2
0.0 0.0
0.0

NE O W IZ G ames C orporation
J umbuck E ntertainment Limited

G amania Digital E ntertainment C o., Ltd.

G ungH o O nline E ntertainment, Inc.
C hines e G amer International
DXN H oldings B hd

C hangy ou.com Limited
G iant Interactive G roup, Inc.

G ameO n C o Ltd.

G ravity C o., Ltd

T he9 Limited
S handa Interactive E ntertainment Ltd.

Neteas e.com Inc.

S NAP Interactive, Inc.

O pen T ex t C orp.
C y berplex Inc.

G igaMedia Ltd.

Y D O nline C orp.

IAC /InterActiveC orp.

S ohu.com Inc.

NetDragon W ebS oft, Inc.

S park Network s , Inc.

Worlds .com Inc.

G ree, Inc.

Mix i, Inc.

T encent H oldings Ltd.
XING AG
W ebz en Inc.

P erfect World C o., Ltd.

H anbitS oft, Inc.

K ings oft C o. Ltd.
Actoz S oft C o., Ltd.

Figure 15. P/E Ranking
Source. Capital IQ

P/E (LTM) by country/exchange: Figure 16 shows the average P/E multiples by stock exchange. The OTCBB has the
largest number of companies (18), trading at an average multiple of 13.3x. On a geographic basis, the United States has
the most companies (38), trading at an average of 13.3x earnings (Figure 17). Ten of the companies are Canadian
(average 14.5x EPS).

Average P/E - By Country
Average P/E - By Exchange 50.0 46.5
70.0 45.0
61.2 40.0
60.0
35.0
50.0 30.0 28.9
41.6 23.0 22.0
(x)

40.0 35.5 25.0
(x)

29.5 28.9
30.0 20.0 14.7 14.5
19.0 15.0 13.3 12.7
20.0 14.7
14.4 13.3 10.5 10.0 6.8
7.0 6.8 4.1
10.0 4.1 5.0
2.1 0.0
0.0 0.0 0.0 0.0
Germany
Japan

Canada

China

United

Malaysia
OTCBB
GTSM

NasdaqGM

Italy
South
Korea
OSE

TSE

SEHK

KOSE

NasdaqGS
OM

States
Taiwan

Australia
XTRA

AMEX

TSX

KLSE

NYSE

Sweden

Switzerland
ASX

# Companies 1 5 3 2 2 6 1 2 18 14 4 1 2 1 5 # Companies 6 2 3 10 1 10 38 8 1 2 1 1

Figures 16 & 17. P/E Ranking (Exchange, Country)
Source. Capital IQ

UPCOMING EVENTS

E arnings C alendar
C ompany Date & Time Quarter C onf C all Details
IAC/InterActiveCorp. (NasdaqGS:IACI) Tuesday, October 27, 2009, 11:00 a.m. EDT Q 3 2009 www. ia c. com/inves tors
ValueClick Inc. (NasdaqGS:VCLK) Tuesday, October 27, 2009, 4:30 p.m. EDT Q 3 2009 http: //www. va lueclick. com/
Open Text Corp. (NasdaqGS:OTEX) Tuesday, October 27, 2009, 5:00 p.m. EDT Q 1 2010 1-800-814-4861
Shutterfly, Inc. (NasdaqGS:SFLY) Wednesday, October 28, 2009, 5:00 p.m. EDT Q 3 2009 719-325-4880
Openwave Systems Inc. (NasdaqGS:OPWV) Thursday, October 29, 2009, 5:00 p.m. EDT Q 1 2010 877-941-8416
Tree.Com, Inc. (NasdaqGM:TREE) Friday, October 30, 2009, 11:00 a.m. EDT Q 3 2009 1-888-428-9470
LookSmart, Ltd. (NasdaqGM:LOOK) Monday, November 2, 2009, 5:00 p.m. EST Q 3 2009 1-877-941-8418
United Online Inc. (NasdaqGS:UNTD) Wednesday, November 4, 2009, 5:30 p.m. EST Q 3 2009 877-718-5098

Figure 18. Earnings Calendar

Pric e P erformanc e
C ompany Name C urrenc y Tic ker E xc hange US D Market C ap ($m) C urrent P ric e 1 Wk 1 Mth 3 Mth 6 Mth 1 Yr 52 Week

A ccelerize New Media, Inc. US D AC L Z OT C B B 15.4 0.55 -8.3% -15.4% -3.5% 12.2% 10.0% -20.3%
A ctoz S oft C o. , L td. KR W A052790 K OS E 118.3 16, 300 4. 5% -13.8% -36.2% 18.1% 90.2% -54.7%
A Q Interactive, Inc. JPY 3838 TS E 29.4 48, 400 -1.2% -6.4% -18.0% 4. 1% 2.1% -41.7%
A s s ociated Media H oldings Inc. US D AS MH OT C P K 0.4 0.01 -35.7% -35.7% -55.0% 500.0% 12.5% -55.0%
B igs tring C orp. US D BSGC OT C B B 2.0 0.03 -12.8% 70.0% 15.3% 150.0% 70.0% -40.4%
B eta wave C orpora tion US D B W AV OT C B B 1.2 0.04 -21.4% -59.9% -63.5% -63.9% -65. 1% -86.2%
B eyond C ommerce, Inc. US D B Y OC OT C B B 5.1 0.10 -4.8% -37.5% -67.7% -92.6% -94. 7% -95.3%
B right T hings plc GB P AIM:B G T A IM 5.4 0.01 -9.1% -9.1% -28.6% -33.3% -13. 2% -49.4%
B roadW ebA s ia Inc. US D BWBA OT C P K 2.5 0.03 -87.0% -87.0% -87.0% -93.3% -95. 0% -99.0%
C DC C orp. US D C H IN.A Nas da qG S 262.8 2.48 -2.0% -4.6% -18.4% 110.2% 103. 3% -36.7%
C ha ngyou.com Limited US D C Y OU Nas da qG S 1, 721.5 31.30 -1.3% -15.9% -19.1% 0. 8% NM -35.3%
C hina G a tewa y C orporation US D CGWY OT C P K 0.0 0.00 -86.7% -86.7% -86.7% 0. 0% -80. 0% -93.3%
C hines e G a mer International TWD G T S M:3083 GTS M 1, 110.0 428.00 -9.9% -7.8% -8.2% 103.8% 433. 7% -17.5%
C LIC K E R Inc. US D CLK Z OT C B B 0.9 0.01 22.2% 18.3% 57.1% 134.0% -96. 9% -97.3%
C ornerW orld C orpora tion US D CW R L OT C B B 5.7 0.06 0. 0% 0.0% 20.0% -57.1% -70. 0% -87.2%
C yberplex Inc. C AD T S X: C X TS X 77.9 1.30 1. 6% 0.0% -23.5% 4. 0% 188. 9% -34.7%
DADA S pA E UR C M:DA CM 177.4 7.47 -2.9% 6.9% 25.8% 14.9% 2.4% -8.8%
DXN Holdings B hd MY R DXN K LS E 40.9 0.63 -3.8% 2.5% 56.3% 95.3% 78.6% -9.4%
Dibz Interna tional, Inc. US D DIB Z OT C P K 0.0 0.00 20.0% NM 20.0% -88.0% -97. 6% -97.6%
DigitalP os t Intera ctive, Inc. US D DG LP OT C B B 4.6 0.06 0. 0% 9.1% 20.0% 252.9% 71.4% -39.4%
DigitalT own, Inc. US D DG T W OT C B B 54.7 2.00 -20.0% 0.0% 0.0% 0. 0% 0.0% -42.9%
Dolphin Digital Media, Inc. US D DP DM OT C B B 26.3 0.49 28.9% 6.5% 63.3% -10.9% -48. 4% -51.0%
E olith C o. L td. KR W A041060 K OS E 34.9 575.00 -5.0% -23.3% -26.3% -32.4% 6.5% -50.4%
E xtens ions , Inc. US D E XT I OT C P K 11.1 0.25 56.3% 0.0% 212.5% 66.7% 150. 0% -75.2%
F luid Mus ic C anada, Inc. C AD T S X: F MN TS X 91.7 1.90 37.7% 31.0% 100.0% 363.4% 375. 0% -11.6%
F rogs ter Intera ctive P ictures AG E UR FR G XT R A 74.7 19.90 -2.9% 14.4% 54.5% 115.1% 373. 8% -7.4%
G amania Digita l E ntertainment C o., L td. TWD 6180 GTS M 228.8 48.85 -2.3% -1.3% -21.5% 51.2% 244. 0% -29.0%
G ameO n C o L td. JPY 3812 TS E 95.6 88, 400 -1.9% -9.8% -16.5% -8.7% 33.9% -41.8%
G eoS entric Oyj E UR G E O1V H LS E 65.8 0.05 0. 0% 0.0% 25.0% 25.0% 66.7% -16.7%
G ia nt Interactive G roup, Inc. US D GA NY S E 1, 730.0 7.64 0. 7% -3.4% -4.3% -11.6% 9.3% -20.2%
G igaMedia L td. US D G IG M Nas da qG S 247.5 4.54 -5.6% -12.4% -7.5% -33.1% -24. 2% -41.3%
G ra vity C o., Ltd US D GR VY Nas da qG M 44.5 1.60 -2.4% -14.9% 4.6% 63.3% 77.8% -39.2%
G ree, Inc. JPY T S E :3632 TS E 2, 523.3 5, 040 4. 1% 1.0% 46.9% 76.2% NM -5.4%
G ungH o Online E ntertainment, Inc. JPY 3765 OS E 283.1 221, 000 1. 6% -9.1% 1.5% 59.0% 146. 9% -21.0%
H anbitS oft, Inc. KR W A047080 K OS E 65.3 3, 560 -12.9% -24.3% -19.5% -19.1% 22.3% -46.4%
IAC /InterA ctiveC orp. US D IA C I Nas da qG S 2, 524.9 19.07 -0.6% -6.7% 6.5% 14.5% 13.8% -10.4%
IAS E nergy, Inc. US D IA S A. E OT C B B 7.4 0.11 5. 0% -34.4% -4.5% -58.0% -4.5% -62.5%
is eemedia Inc. C AD IE E T S XV 6.6 0.14 -6.7% 16.7% 75.0% 40.0% 154. 5% -12.5%
J umbuck E ntertainment Limited AU D AS X: J MB AS X 14.5 0.34 -10.5% -15.0% -8.1% -26.9% -20. 0% -41.9%
K AB Dis tribution Inc. C AD T S X: K AB TS X 0.6 0.01 -50.0% -99.2% -99.2% -98.6% -99. 4% -99.2%
K ings oft C o. L td. HK D 3888 S E HK 1, 058.1 7.51 -0.1% -3.3% 4.7% 101.9% 341. 8% -20.7%
L ingo Media C orpora tion C AD T S XV :LM T S XV 11.4 1.00 1. 0% -9.1% -9.1% 11.1% -22. 5% -31.5%
L iveW orld Inc. US D LV W D OT C P K 1.3 0.04 0. 0% -48.8% 10.8% -59.0% -54. 4% -83.6%
L ookS mart, L td. US D LO OK Nas da qG M 22.6 1.32 10.2% 15.0% 5.8% 0. 2% -23. 6% -28.5%
Ma gnitude Information S ys tems Inc. US D MAG Y OT C B B 4.1 0.01 -25.0% -10.0% 20.0% -40.0% -35. 7% -70.0%
Mixi, Inc. JPY 2121 TS E 1, 270.0 737,000.00 15.2% 17.9% 11.2% 57.1% 28.0% -3.4%
Modern T imes G roup Mtg AB SEK MT G B OM 3, 082.3 325.70 -1.0% 7.1% 26.0% 54.0% 97.4% -4.2%
MO K O .mobi L imited AU D MK B AS X 7.3 0.08 0. 0% 3.9% 12.9% 6. 8% 64.6% -21.0%
Myriad G roup AG C HF MY R N S WX 192.5 4.49 -0.2% 1.8% 5.9% -2.4% -24. 9% -40.1%
NE O W IZ G ames C orporation KR W A095660 K OS E 715.5 40,500.00 9. 3% -4.9% 29.0% 39.2% 530. 4% -9.8%
NetDra gon W ebS oft, Inc. HK D 777 S E HK 349.9 5.13 3. 6% -9.2% -15.3% 11.8% 90.0% -28.3%
Netea s e. com Inc. US D NT E S Nas da qG S 4, 879.4 37.70 -4.2% -15.0% -9.6% 25.3% 67.6% -22.3%
NeuLion Incorpora ted C AD T S X: NL N TS X 77.2 0.76 -6.2% -24.0% -6.2% 38.2% 16.9% -41.5%
NeXplore C orpora tion US D NXP C OT C P K 44.1 0.79 12.9% 43.6% 12.9% 58.0% -12. 2% -45.5%
Ngi G roup Inc. JPY 2497 TS E 42.0 30,300.00 7. 4% 17.5% -3.3% -20.3% -57. 3% -65.1%
Northgate T echnologies Limited INR 590057 BSE 25.8 35.55 -2.1% -17.8% -11.7% -10.7% -55. 2% -59.3%
O pen T ext C orp. US D OT E X Nas da qG S 2, 219.6 39.53 -3.4% 4.5% 7.0% 23.1% 52.3% -4.6%
O penwa ve S ys tems Inc. US D OP W V Nas da qG S 229.7 2.75 8. 7% 7.8% -6.1% 120.0% 266. 7% -12.1%
P erfect W orld C o., Ltd. US D PWRD Nas da qG S 2, 218.6 45.11 0. 3% 2.4% 31.5% 146.6% 142. 1% -10.7%
P NI Digital Media Inc. C AD T S XV :P N T S XV 53.5 1.70 -2.9% -15.8% 14.1% 11.8% -17. 1% -26.7%
Q uepa s a C orp. US D QP S A OT C B B 17.2 1.35 -3.6% -22.0% 35.0% 64.6% -38. 1% -42.6%
O AO R B C Information S ys tems US D R BCI R TS 222.0 1.60 6. 7% 37.9% 52.4% 62.4% 6.7% -5.9%
S ha nda Interactive E nterta inment L td. US D S NDA Nas da qG S 3, 095.8 46.03 -6.8% -7.9% -7.4% -5.3% 66.5% -29.2%
S hutterfly, Inc. US D S F LY Nas da qG S 369.4 14.51 -8.9% -12.3% -2.0% 36.6% 90.2% -20.0%
S K C ommunications C o. , L td. KR W A066270 K OS E 273.7 7,800.00 -5.0% -11.3% -15.9% -17.0% 53.5% -39.3%
S NA P Intera ctive, Inc. US D S TVI OT C B B 3.8 0.35 -30.0% -12.5% -22.2% -53.3% 75.0% -67.6%
S NM G loba l H oldings US D S NMN OT C P K 0.0 0.00 -11.8% -48.3% -62.5% -68.8% -98. 5% -99.3%
S ocial Media V entures Inc. US D S MV I OT C P K 0.0 0.02 -52.9% -82.6% -93.1% 65.0% -99. 5% -99.7%
S ocialwis e, Inc. US D S CLW OT C B B 25.7 0.58 -4.9% -4.9% -24.0% 28.9% -70. 6% -74.1%
S ohu.com Inc. US D S O HU Nas da qG S 2, 332.6 60.85 -13.1% -9.0% -1.9% 21.6% 10.8% -15.8%
S pa rk Networks , Inc. US D LO V A ME X 52.7 2.56 4. 1% 10.8% 7.6% 15.3% -17. 4% -21.2%
S pectrumDNA, Inc. US D S P XA OT C B B 4.9 0.10 -28.6% -54.5% -28.6% -47.4% -60. 0% -77.8%
T encent H oldings Ltd. HK D 700 S E HK 34,855. 4 149 8. 4% 15.1% 43.7% 125.5% 237. 6% -2.2%
T he P a rent C ompany US D K IDS . Q OT C P K 0.2 0.01 0. 0% -30.0% -65.0% -41.7% -99. 2% -99.3%
T he9 L imited US D NC T Y Nas da qG S 201.5 8.03 -9.7% 3.5% -5.4% -14.4% -43. 5% -51.7%
T heS treet.com, Inc. US D TS CM Nas da qG M 87.5 2.86 -4.7% -0.3% 36.8% 18.2% -27. 4% -31.1%
T ree.C om, Inc. US D TR E E Nas da qG M 84.6 7.83 -0.9% 5.2% -25.5% 32.7% 188. 9% -40.1%
U nis erve C ommunica tions C orp. C AD T S XV :US S T S XV 1.1 0.05 25.0% 25.0% -50.0% 25.0% -72. 2% -50.0%
U nited O nline Inc. US D UNT D Nas da qG S 727.7 8.68 -3.9% 8.5% -3.3% 66.6% 17.3% -8.2%
U OMO Media, Inc US D UO MO OT C B B 8.6 0.10 -9.1% -25.9% -6.5% 25.0% -47. 4% -90.6%
V alueC lick Inc. US D V CLK Nas da qG S 1, 112.9 12.77 -7.1% 0.3% 10.0% 24.5% 72.6% -8.4%
V OIS , Inc. US D V O IS OT C B B 4.1 0.01 0. 0% 11.1% 0.0% 66.7% -33. 3% -78.3%
W ebzen Inc. US D W ZE N Nas da qG M 34.4 2.90 9. 5% -1.1% -19.2% 4. 4% 176. 4% -38.0%
W izzard S oftwa re C orporation US D W ZE A ME X 21.2 0.42 -6.7% -10.6% -16.0% -23.6% -58. 0% -75.7%
W orlds .com Inc. US D W DDD OT C B B 5.2 0.10 0. 0% 0.0% -9.1% -41.2% -44. 4% -58.3%
W ynds torm C orpora tion US D W Y ND OT C P K 1.8 0.10 0. 0% 0.0% 0.0% 11.1% -50. 0% -80.4%
XING A G E UR O1B C XT R A 281.1 36.41 -1.9% 8.7% 21.5% 26.5% 38.7% -4.1%
Y D Online C orp. KR W A052770 K OS E 97.4 7,750.00 -4.2% -13.4% -3.0% -11.1% 29.2% -37.5%
Y nk K orea Inc. KR W A023770 K OS E 19.2 4,300.00 6. 6% 12.1% -24.8% -19.3% -26. 7% -50.6%
H igh 56.3% 70.0% 212.5% 500.0% 530. 4% -2.2%
L ow -87.0% -99.2% -99.2% -98.6% -99. 5% -99.7%
Average 810.8 -4.0% -8.0% -0.8% 28.1% 40.2% -43.3%
Media n -2.0% -4.8% -3.3% 14.5% 9.3% -40.1%

Figure 19. Price Performance
Source. Capital IQ

Valuation Multiples
P rimary US D Market TE V/L TM TE V/ NTM TE V/L TM TE V/NTM
C ompany Name S ec tor C ountry E xc hange Ticker C ap ($m) R evenue R evenue E B ITDA E B ITDA P /L TM E P S P /NTM E P S P /TangB V
Accelerize New Media, Inc. Direct Marketing U nited S ta tes OTCB B AC LZ 15.4 4.6x - - - - - -
Actoz S oft C o., Ltd. G aming S outh K orea K OS E A052790 118.3 0.8x - 3. 3x - 16.7x - 1.8x
AQ Intera ctive, Inc. G aming J apan TS E 3838 29.4 0.1x 0.1x - - - 8.7x 0.5x
As s ocia ted Media Holdings Inc. Mobile U nited S ta tes OTCP K AS MH 0.4 12.6x - - - - - -
B igs tring C orp. Ins ta nt Mes s aging U nited S ta tes OTCB B BSGC 2.0 49.2x - - - - - -
B etawave C orpora tion Media U nited S ta tes OTCB B B W AV 1.2 - - - - - - 0.2x
B eyond C ommerce, Inc. S ocial Networking U nited S ta tes OTCB B B YOC 5.1 0.9x - - - - - -
B right T hings plc S ocial Networking U nited K ingdom AIM AIM:B G T 5.4 - - - - - - -
B roadW ebAs ia Inc. S ocial Networking U nited S ta tes OTCP K BWBA 2.5 - - - - - - -
C DC C orp. G aming H ong K ong N as da qG S C HIN.A 262.8 0.7x 0.8x 10.3x 7.2x - - -
C hangyou.com Limited G aming C hina N as da qG S C Y OU 1,721.5 6.0x 4.7x 9. 8x 8.0x 11.8x 10.7x 11.7x
C hina G atewa y C orpora tion Mobile U nited S ta tes OTCP K CGW Y 0.0 0.0x - - - - - -
C hines e G amer Interna tional G aming T a iwa n GTS M G T S M:3083 1,110.0 16.8x 15.8x 29.9x 25.8x 39.4x 23.6x 19.0x
C L IC K E R Inc. Direct Marketing U nited S ta tes OTCB B C LK Z 0.9 0.4x - - - - - -
C ornerW orld C orporation C ontent U nited S ta tes OTCB B CW R L 5.7 2.4x - - - - - -
C yberplex Inc. A dvertis ing C ana da TS X T S X: C X 77.9 0.6x 0.5x 6. 0x 4.7x 7.0x 7.9x 3.1x
DA DA S pA S ocial Networking Italy CM C M:DA 177.4 0.9x 0.9x 7. 1x 6.1x - 16.8x -
DXN Holdings B hd S ocial Networking Mala ys ia K LS E DXN 40.9 0.7x - 5. 0x - 6.8x - 0.9x
Dibz Interna tiona l, Inc. S NS Apps U nited S ta tes OTCP K DIB Z 0.0 - - - - - - -
DigitalP os t Interactive, Inc. C ontent U nited S ta tes OTCB B DG L P 4.6 6.7x - - - - - -
DigitalT own, Inc. S ocial Networking U nited S ta tes OTCB B DG T W 54.7 - - - - - - -
Dolphin Digital Media, Inc. S ocial Networking U nited S ta tes OTCB B DP DM 26.3 46.9x 1.7x - - - 2.0x -
E olith C o. L td. G aming S outh K orea K OS E A041060 34.9 2.4x - - - - - 3.2x
E xtens ions , Inc. C ontent U nited S ta tes OTCP K E XT I 11.1 - - - - - - -
F luid Mus ic C a nada, Inc. Media U nited S ta tes TS X T S X:F MN 91.7 16.4x 15.7x - - - - 8.6x
F rogs ter Interactive P ictures A G G aming G erma ny XT R A FR G 74.7 7.6x - - - - - 9.2x
G amania Digital E ntertainment C o., Ltd. G aming T a iwa n GTS M 6180 228.8 1.5x - 8. 2x - 19.7x - 3.0x
G ameO n C o Ltd. G aming J apan TS E 3812 95.6 0.3x - 1. 0x - 9.5x - 1.1x
G eoS entric Oyj Mobile F inland H LS E G E O1V 65.8 12.1x - - - - - 54.3x
G iant Interactive G roup, Inc. G aming C hina NY S E GA 1,730.0 - - - - 2.1x 15.9x 0.3x
G igaMedia Ltd. G aming T a iwa n N as da qG S G IG M 247.5 0.9x 0.9x - 4.4x 9.8x 9.1x 2.1x
G ravity C o., Ltd G aming S outh K orea N as da qG M GR VY 44.5 - - - - 0.0x - 0.0x
G ree, Inc. S ocial Networking J apan TS E T S E : 3632 2,523.3 15.4x 7.6x 25.7x 13.6x 53.5x 27.5x 24.7x
G ungH o O nline E nterta inment, Inc. Media J apan OS E 3765 283.1 2.1x - 9. 4x - 61.2x - 21.1x
Ha nbitS oft, Inc. G aming S outh K orea K OS E A047080 65.3 0.9x - 36.6x - 11.6x - 1.8x
IAC /InterActiveC orp. Media U nited S ta tes N as da qG S IAC I 2,524.9 0.6x 0.6x 14.9x 4.5x 11.9x 33.0x 1.2x
IAS E nergy, Inc. V ideo C ana da OTCB B IAS A.E 7.4 - - - - - - -
is eemedia Inc. C ontent C ana da T S XV IE E 6.6 3.6x - - - - - 5.4x
J umbuck E ntertainment Limited S ocial Networking Aus tra lia AS X AS X:J MB 14.5 0.5x 0.5x 1. 1x 1.2x 4.1x 3.0x 1.3x
K A B Dis tribution Inc. C ontent C ana da TS X T S X:K AB 0.6 - - - - - - 0.0x
K ings oft C o. Ltd. G aming C hina S E HK 3888 1,058.1 7.6x 6.2x 17.2x 11.8x 21.1x 15.8x 5.9x
Lingo Media C orpora tion L earning C ana da T S XV T S XV : LM 11.4 8.8x - - - - - 20.5x
LiveW orld Inc. S ocial Networking U nited S ta tes OTCP K LV W D 1.3 0.0x - - - - - 0.5x
LookS ma rt, L td. Direct Marketing U nited S ta tes N as da qG M L OOK 22.6 - - - - - - 0.9x
Magnitude Information S ys tems Inc. S ocial Networking U nited S ta tes OTCB B MA G Y 4.1 - - - - - - -
Mixi, Inc. S ocial Networking J apan TS E 2121 1,270.0 8.4x 7.2x 24.9x 23.0x 61.7x 53.8x 8.4x
Modern T imes G roup Mtg AB Media S weden OM MT G B 3,082.3 1.9x 1.8x 12.1x 13.6x 14.7x 16.4x -
MOK O .mobi Limited S ocial Networking Aus tra lia AS X MK B 7.3 9.1x - - - - - 7.5x
Myriad G roup AG Mobile S witzerla nd SWX MY R N 192.5 3.0x - - - - - -
NE OW IZ G ames C orporation G aming S outh K orea K OS E A095660 715.5 3.4x 3.0x 12.7x 9.8x 37.2x 14.4x 18.8x
NetDra gon W ebS oft, Inc. G aming C hina S E HK 777 349.9 2.3x 1.6x 8. 0x 4.4x 14.3x 11.4x 1.9x
Netea s e.com Inc. G aming C hina N as da qG S NT E S 4,879.4 - - - - 2.8x 15.1x 0.8x
NeuLion Incorporated V ideo C ana da TS X T S X:NL N 77.2 3.1x - - - - - 5.8x
NeXplore C orporation C ontent U nited S ta tes OTCP K NXP C 44.1 28.3x - - - - - -
Ngi G roup Inc. Media J apan TS E 2497 42.0 - - - - - - 0.8x
Northgate T echnologies Limited Direct Marketing India BS E 590057 25.8 0.3x - - - - 1.4x -
O pen T ext C orp. C ollabora tion C ana da N as da qG S OT E X 2,219.6 2.9x 2.6x 11.0x 9.1x 37.0x 14.0x -
O penwave S ys tems Inc. Mobile U nited S ta tes N as da qG S OP W V 229.7 0.6x 0.6x 24.6x 5.5x - 34.4x 3.3x
P erfect W orld C o., Ltd. G aming C hina N as da qG S PWRD 2,218.6 0.7x 3.5x 1. 3x 6.6x 3.2x 14.3x 1.5x
P N I Digital Media Inc. Digita l Ima ging C ana da T S XV T S XV :P N 53.5 2.5x 2.0x 22.3x 6.7x - 13.6x 18.7x
Q uepa s a C orp. S ocial Networking U nited S ta tes OTCB B QP S A 17.2 - - - - - - -
O AO R B C Information S ys tems Media R us s ia R TS R BCI 222.0 0.0x 1.0x 0. 4x 5.7x - 6.5x -
S handa Interactive E nterta inment Ltd. G aming C hina N as da qG S S NDA 3,095.8 - - - - 2.2x 12.7x 0.9x
S hutterfly, Inc. Digita l Ima ging U nited S ta tes N as da qG S S FLY 369.4 1.4x 1.4x 11.2x 7.2x - - 2.2x
S K C ommunications C o., Ltd. S earch S outh K orea K OS E A066270 273.7 1.4x - 21.8x - - - -
S N AP Interactive, Inc. Dating U nited S ta tes OTCB B S TVI 3.8 0.6x - 2. 3x - 6.7x - 2.1x
S N M G lobal Holdings Media U nited S ta tes OTCP K S NMN 0.0 1.1x - - - - - -
S ocial Media V entures Inc. S ocial Networking U nited S ta tes OTCP K S MV I 0.0 4.5x - - - - - -
S ocialwis e, Inc. S ocial Networking U nited S ta tes OTCB B S CLW 25.7 - - - - - - -
S ohu.com Inc. G aming C hina N as da qG S S O HU 2,332.6 3.8x 3.2x 8. 7x 7.0x 13.8x 16.0x 4.6x
S park N etworks , Inc. S ocial Networking U nited S ta tes AME X L OV 52.7 1.0x - 4. 7x - 14.4x - 53.9x
S pectrumDN A, Inc. Media U nited S ta tes OTCB B S P XA 4.9 39.9x - - - - - 48.5x
T encent Holdings Ltd. P orta l C hina S E HK 700 34,855.4 27.6x 21.0x - - 71.2x 58.8x 31.7x
T he P a rent C ompany Media U nited S ta tes OTCP K K IDS .Q 0.2 0.2x 0.2x - 12.8x - - -
T he9 L imited G aming C hina N as da qG S NC T Y 201.5 - - - - 2.3x - 0.1x
T heS treet.com, Inc. Media U nited S ta tes N as da qG M TS CM 87.5 0.3x 0.4x 11.8x - - - 1.1x
T ree.C om, Inc. P orta l U nited S ta tes N as da qG M TREE 84.6 0.4x 0.4x - 8.1x - 50.4x 1.1x
Unis erve C ommunications C orp. S ocial Networking C ana da T S XV T S XV :US S 1.1 0.2x - - - - - -
United Online Inc. Media U nited S ta tes N as da qG S U NT D 727.7 1.0x 1.0x 4. 9x 4.2x - 6.6x -
UO MO Media, Inc Media C ana da OTCB B UO MO 8.6 11.5x - - - - - -
V a lueC lick Inc. Media U nited S ta tes N as da qG S V CLK 1,112.9 1.7x 1.8x 9. 9x 7.0x - 20.0x 7.2x
V O IS , Inc. S ocial Networking U nited S ta tes OTCB B V OIS 4.1 - - - - - - 26.3x
W ebzen Inc. G aming S outh K orea N as da qG M W ZE N 34.4 - - - - 0.0x - 0.0x
W izzard S oftware C orporation P odca s ting U nited S ta tes AME X W ZE 21.2 4.2x - - - - - -
W orlds .com Inc. C ontent U nited S ta tes OTCB B W DDD 5.2 - - - - 20.0x - -
W ynds torm C orporation C ontent U nited S ta tes OTCP K W Y ND 1.8 - - - - - - -
XIN G AG S ocial Networking G erma ny XT R A O1B C 281.1 3.9x 2.9x 13.5x 8.1x 28.9x 16.5x 9.0x
Y D Online C orp. G aming S outh K orea K OS E A052770 97.4 1.9x 1.4x 8. 6x 4.7x 10.3x - 3.2x
Y nk K orea Inc. G aming S outh K orea K OS E A023770 19.2 1.5x - 14.6x - - - 0.9x
High 34,855.4 49.2x 21.0x 36.6x 25.8x 71.2x 58.8x 54.3x
Low 0.0 0.0x 0.1x 0. 4x 1.2x 0.0x 1.4x 0.0x
Average 810.8 6.1x 3.5x 11.8x 8.5x 19.0x 18.3x 8.7x
Median 44.5 1.9x 1.6x 9. 9x 7.0x 11.9x 14.7x 3.0x

Figure 20. Valuation Comparison
Source. Capital IQ

S ummary by C ountry
C ompany Name US D Market C ap ($m) Avg US D Market C ap ($m) US D L TM Total R ev ($m) US D L TM Total E B ITDA ($m) E B ITDA %

United S tates 38 C hina 49, 633. 4 C hina 4,963. 3 C hina 4,152. 4 C hina 2, 070. 2 C hina 48. 8%
C a na da 10 U nited S ta tes 5, 811. 3 S weden 2,974. 2 United S tates 3,887. 3 S weden 304. 6 A us tralia 42. 8%
C hina 10 J a pan 3, 871. 5 J apan 645. 3 S weden 1,982. 6 United S tates 290. 0 T aiwan 37. 1%
S outh K orea 8 S weden 2, 974. 2 T aiwan 577. 9 C a na da 1,015. 0 C a na da 200. 0 J apan 24. 2%
J a pa n 6 C anada 2, 488. 2 Hong K ong 294. 6 S outh K orea 707. 3 J a pa n 186. 0 S weden 15. 4%
T a iwa n 3 T a iwa n 1, 733. 6 C anada 248. 8 J a pa n 634. 4 S outh K orea 121. 9 Mala ys ia 14. 4%
Aus tralia 2 S outh K orea 1, 527. 4 S outh K orea 190. 9 T a iwa n 385. 8 T a iwa n 59. 8 Italy 13. 1%
G erma ny 2 G ermany 317. 0 Ita ly 165. 4 Hong K ong 361. 6 Ita ly 31. 9 R us s ia 13. 1%
S witzerla nd 1 Hong K ong 294. 6 R us s ia 160. 9 Ita ly 242. 6 Hong K ong 25. 1 S outh K orea 12. 7%
Hong K ong 1 Ita ly 165. 4 G ermany 158. 5 R us s ia 156. 2 R us s ia 20. 4 Hong K ong 6. 9%
F inla nd 1 R us s ia 160. 9 U nited S ta tes 152. 9 India 82. 8 G erma ny 12. 5 S witzerla nd 1. 9%
Ita ly 1 S witzerla nd 92. 0 S witzerla nd 92. 0 Ma lays ia 77. 1 Ma lays ia 11. 1 C anada -8. 5%
United K ingdom 1 F inland 65. 9 F inland 65. 9 G erma ny 68. 7 Aus tralia 4. 5 G ermany -9. 1%
India 1 Malays ia 39. 8 Malays ia 39. 8 S witzerla nd 40. 0 S witzerla nd 0. 8 U nited S ta tes -21. 9%
S weden 1 India 31. 0 India 31. 0 Aus tralia 17. 8 Norwa y -1. 1 India -50. 0%
R us s ia 1 Aus tralia 22. 1 Aus tralia 11. 0 F inla nd 5. 5 United K ingdom -2. 7 Norway -50. 6%
Ma lays ia 1 U nited K ingdom 6. 0 U nited K ingdom 6. 0 Norwa y 2. 3 F inla nd -17. 5 U nited K ingdom NA
Norwa y 1 Norway 0. 1 Norway 0. 1 United K ingdom 0. 0 India -41. 4 F inland NA

G rand Total 89 G rand Total 69,234.6 G rand Total 777.9 G rand Total 13,819.5 G rand Total 3,276.1 G rand Total 5.1%

Figure 21. Comparison by Country
Source. Capital IQ

S ummary by E xc hange
C ompany Name US D Market C ap ($m) Avg US D Market C ap ($m) US D L TM Total R ev ($m) US D L TM Total E B ITDA ($m) E B ITDA %

OT C B B 18 S E HK 31, 520. 4 S E HK 10,506. 8 OM 1,982. 6 Na s daqG S 1, 796. 0 NY S E 62. 5%
Na s daqG S 14 Nas da qG S 24, 385. 7 OM 2,974. 2 S E HK 540. 0 S E HK 767. 5 AS X 42. 8%
OT C P K 11 TS E 3, 569. 2 NY S E 1,750. 4 Na s daqG S 498. 6 OM 304. 6 S E HK 40. 6%
K OS E 6 OM 2, 974. 2 Nas da qG S 1,741. 8 CM 242. 6 TS E 160. 2 GTS M 37. 1%
TS E 5 NY S E 1, 750. 4 GTS M 715. 0 NY S E 198. 5 NY S E 124. 1 Nas da qG S 30. 4%
Na s daqG M 5 K OS E 1, 437. 0 TSE 713. 8 RTS 156. 2 K OS E 103. 2 TSE 24. 6%
TS X 4 GTS M 1, 430. 0 OS E 302. 3 OS E 116. 1 GTS M 59. 8 OS E 22. 2%
T S XV 4 XT R A 317. 0 K OS E 239. 5 K OS E 106. 0 CM 31. 9 OM 15. 4%
S E HK 3 OS E 302. 3 CM 165. 4 TS E 103. 7 OS E 25. 8 K LS E 14. 4%
AME X 2 Nas da qG M 279. 7 R TS 160. 9 GTS M 101. 1 RTS 20. 4 CM 13. 1%
AS X 2 TS X 243. 6 XT R A 158. 5 BSE 82. 8 Na s daqG M 15. 6 R TS 13. 1%
XT R A 2 OT C B B 230. 9 SWX 92. 0 Na s daqG M 82. 4 XT R A 12. 5 K OS E 9. 6%
GTS M 2 CM 165. 4 HLS E 65. 9 K LS E 77. 1 K LS E 11. 1 Nas da qG M 7. 7%
SWX 1 R TS 160. 9 TSX 60. 9 TS X 46. 4 AME X 6. 2 T S XV 5. 6%
HL S E 1 SWX 92. 0 Nas da qG M 55. 9 SWX 40. 0 AS X 4. 5 S WX 1. 9%
CM 1 T S XV 76. 6 K LS E 39. 8 XT R A 34. 3 SWX 0. 8 XT R A -9. 1%
BS E 1 AME X 68. 5 AME X 34. 2 AME X 27. 9 OT C NO -1. 1 A ME X -31. 8%
NY S E 1 HLS E 65. 9 BS E 31. 0 OT C P K 16. 5 AIM -2. 7 TSX -34. 7%
OS E 1 OT C P K 65. 8 T S XV 19. 1 T S XV 12. 0 TS X -4. 3 OTCB B -38. 8%
AIM 1 K LS E 39. 8 OT C B B 12. 8 AS X 8. 9 T S XV -4. 6 OTCP K -41. 5%
OM 1 BS E 31. 0 AS X 11. 0 HL S E 5. 5 HL S E -17. 5 BSE -50. 0%
RTS 1 AS X 22. 1 AIM 6. 0 OT C B B 2. 3 OT C P K -34. 1 O T C NO -50. 6%
K LS E 1 AIM 6. 0 OT C P K 6. 0 OT C NO 2. 3 BSE -41. 4 A IM NA
OT C NO 1 OT C NO 0. 1 OT C NO 0. 1 AIM 0. 0 OT C B B -62. 4 HLS E NA

G rand Total 89 G rand Total 69,234.6 G rand Total 777.9 G rand Total 13,819.5 G rand Total 3,276.1 G rand Total 5.1%

Figure 22. Comparison by Exchange
Source. Capital IQ

Financ ing - L as t Three Months (US $ m)
F in. Amount (Million) Type of financ ing
Month C ompany Name C ountry Angel/S eed Debt financ ing S eries A S eries B S eries C S eries D S eries E Grand Total
Aug-09 Turbine US A 50. 0 50. 0
S mith & Tinker US A 29.0 29. 0
Mint US A 14.1 14. 1
Zoove US A 13. 2 13. 2
R ichR elevance US A 12.5 12. 5
Traffiq US A 10.0 10. 0
MediaMath US A 10. 0 10. 0
B ill.c om US A 8.5 8.5
E do Interactive US A 8. 5 8.5
InnoC entive US A 7.3 7.3
OneR iot US A 7.0 7.0
B alihoo US A 7.0 7.0
B oxee US A 6.0 6.0
P olyvore US A 5.6 5.6
Fanbas e US A 5.0 5.0
MOG US A 5.0 5.0
OurS tage US A 3.0 3.0
Z2L ive US A 3.0 3.0
K ODA US A 3. 0 3.0
S coreloop G erma ny 2.8 2.8
R oblox US A 2. 2 2.2
Tremor Media US A 2.0 2.0
iS ocket US A 2.0 2.0
R ights Flow US A 1.5 1.5
P lis ta G erma ny 1.4 1.4
C hes s C ube S outh Africa 1. 3 1.3
L inks ify US A 0. 5 0.5
iS yndica US A 0. 4 0.4
DailyB ooth US A 0. 0 0.0
Aug-09 Total 25.8 11.5 77.6 43.6 63.2 221.6

S ep-09 Twitter US A 100.0 100. 0
E ns equenc e US A 20. 0 20. 0
L ivebookings UK 16.0 16. 0
Mzinga US A 10. 0 10. 0
InXpo US A 9.0 9.0
J obvite US A 8.3 8.3
R iot G ames US A 8.0 8.0
NextB io US A 8.0 8.0
Imeem US A 6.0 6.0
Vuc lip US A 6.0 6.0
YuMe US A 5.0 5.0
B ooyah US A 5.0 5.0
NeoE dge US A 4.0 4.0
Allianc e Health Networks US A 3.3 3.3
Unis fair US A 3. 1 3.1
C onduit L abs US A 3.0 3.0
Mocapay US A 3.0 3.0
Fwix US A 2.8 2.8
Vantrix C anada 2.6 2.6
Mas hL ogic US A 2.5 2.5
G reys tripe US A 2.0 2.0
L oomia US A 1. 5 1.5
FourS quare US A 1.4 1.4
E duFire US A 1.3 1.3
Fluther US A 0. 6 0.6
Trans Gaming Inc. C anada 0. 5 0.5
OnL ive US A
S ep-09 Total 0.6 2.0 16.9 52.3 27.9 23.1 110.0 232.8

Oct-09 DailyMotion F ra nce 25.3 25. 3
P opC ap G ames US A 22.5 22. 5
E ngine Yard US A 19.0 19. 0
HubS pot US A 16.0 16. 0
J ive S oftware US A 12.0 12. 0
S pigit US A 10.0 10. 0
Ooyala US A 10.0 10. 0
R eality Mobile US A 6.5 6.5
W atercooler US A 5.5 5.5
Vdopia US A 4.7 4.7
S ometrics US A 4.0 4.0
Amie S treet US A 3.9 3.9
ViVu US A 3.0 3.0
Fizzbac k UK 2.6 2.6
Tec hnorati US A 2. 0 2.0
DataS ync US A 1.2 1.2
DailyB ooth US A 1. 0 1.0
L inkedex UK 1. 0 1.0
C hango C ana da 0.7 0.7
L is tia US A 0. 4 0.4
Oct-09 Total 2.4 38.6 48.0 60.3 2.0 151.2

G rand Total 28.8 2.0 67.0 177.8 131.7 88.3 110.0 605.6

Figure 23. Financing, Last Three Months

C ompany Des c riptions - C urrent Month C apital Market Ac tivity
C ompany HQ Webs ite Des c ription
Amie S treet United S tates www. amies treet. com Amie S treet, Inc. , a W eb bas ed s ocial mus ic s tore, enables members to dis cover, downloa d, and s hare mus ic. T he company was founded in
2006 and is bas ed in L ong Is land C ity, New Y ork.
Aviary United S tates www. aviary. com Aviary is a collabora tive creative s uite for artis ts of all genres . Available both on and offline, via A dobe’s F lex and Air technologies
res pectively, Avia ry ena bles artis ts to create on the fly with an inventory of tools for every medium. F rom image editing to typography to
mus ic to 3D to video, artis ts can crea te and collaborate us ing the compa ny's free and light s oftwa re.
C hango C anada www. chango. com C hango Inc. provides online advertis ing s olution. T he company provides keyword ta rgeted P P C campaigns a nd S earch E engine Marketing
(S E M) campaigns . C hango Inc. was founded in 2008 and is bas ed in T oronto, C anada.
Daily B ooth United S tates www. da ilybooth. com DailyB ooth lets us ers follow their friends and update them in real-time through the us e of pictures and s ta tus updates .
DailyMotion F rance www. da ilymotion. com Dailymotion S A R L provides on-line video content in F rance and E urope. It operates a video entertainment W ebs ite tha t provides video
s ha ring s ervices . T he company als o ena bles s haring of official and profes s ional contents . Dailymotion S A R L wa s founded in 2005 and is
bas ed in P aris , F rance.
DataS ync United S tates www. da tas yncs uite. com DataS ync C orporation develops open s ource cons olida tion s oftware. T he company develops Data S ync S uite, a s oftware pla tform tha t
integrates core applica tions into an open s ource s oftware-as -a-s ervice web porta l. DataS ync C orporation wa s founded in 2005 and is bas ed
in S ioux F alls , S outh Dakota.
E cas t Network United S tates www. ecas tinc. com E ca s t, Inc. opera tes a broadband touch s creen media network in the United S tates . T he company’s network delivers digital mus ic, games ,
entertainment, information, and a dvertis ing to bars a nd nightclubs . Its platform als o delivers on-dema nd content, including videos and
s urveys ; s upports third-party applications ; and allows integration of W eb s ervices , s uch as mobile, e-commerce, and s ocial media, including
photo s haring. T he company was founded in 1999 and is bas ed in S an F ra ncis co, C a lifornia.
E ngine Yard United S tates www. engineya rd. com E ngine Y a rd, Inc. provides ma naged hos ting and deployment s olutions for R uby and R a ils applica tions . T he company offers a clus ter
computing platform, deployment s upport, and data center s ervices . It helps its clients in building s ites and applica tions on-demand. E ngine
Y ard, Inc. was founded in 2006 and is bas ed in S an F rancis co, C alifornia with additional loca tions in the U nited S tates , C anada, E urope,
Is rael, the P hilippines , Aus tra lia , a nd New Zealand.
F eedR oom United S tates www. feedroom. com T he F eedR oom, Inc. provides W eb video s olutions and technology for corporations , media /publis hing orga nizations , and government
agencies . It offers broadband video dis tribution for W eb, s earch engines , and podcas ting; broadband video encoding, ma nagement, a nd
delivery; performance reporting; broadband video application des ign and development; media a dvertis ing s ervices ; s ubs cription and
regis tra tion tools ; email video alert delivery and tracking; and origina l content development and production. T he company was founded in
1999 and is bas ed in New Y ork, New Y ork. As of S eptember 30, 2009, T he F eedR oom, Inc. operates as a s ubs idiary of K IT digital, Inc.
F izzback UK www2. fizzba ck. com T he F izzback G roup L imited provides a n on-demand s olution that drives cus tomer enga gement at the point-of-experience. Its s olution helps
companies to lis ten, res pond, and a ct in rea l-time to their cus tomers ' comments . T he F izzback G roup was formerly known as Ins tant Ma rket
Intelligence L imited a nd cha nged its name to T he F izzback G roup Limited in J anua ry 2007. T he company was founded in 2004 and is bas ed
in L ondon, the United K ingdom.

HubS pot United S tates www. hubs pot.com HubS pot, Inc. offers B 2B inbound marketing s oftwa re. Its products include H ubS pot O wner, which generates qualified leads and convert
lea ds into s ales ; and HubS pot Marketer that offers inbound ma rketing tools . T he company als o provides s earch engine optimization,
bus ines s blogging, competitor analys is , clos ed-loop marketing analytics , W ebs ite editor, lead tracking and intelligence, lead gra der, landing
page wizard, marketing intelligence, s ocia l media, and inbound ma rketing s olutions . HubS pot, Inc. wa s founded in 2006 and is bas ed in
C ambridge, Mas s achus etts .
J ive S oftware United S tates www. jives oftware. com J ive S oftware, Inc. develops , markets , and s ells s ocial productivity and community s oftware s olutions for enterpris es in the United S ta tes and
internationa lly. Its products include C lears pa ce, an enterpris e collabora tion s oftware, which applies a people-centric approach to fa cilitate
workforce networking and collaboration applications ; C lears pace C ommunity, an enterpris e-clas s community s oftware that is us ed to build
large online communities , as well as to engage cus tomers , and build brands and marketing initiatives ; a nd C lears tep, an online community
s olution for s ocial and enterpris e 2. 0 profes s ionals . T he compa ny a ls o offers s trategic and technical cons ulting s ervices . T he company wa s
founded in 2001 and is bas ed in P ortland, O regon.
L inkedex UK NA B as ed in L ondon and S a n F rancis co, Linkedex aims to help companies analys e the proces s by which s earch engines deliver their res ults
and a chieve higher rankings in natural (non-paid-for) s earch for their brands a nd s ervices .
L is tia United S tates www. lis tia. com Lis tia, which launched in Augus t 2009, is eB ay for free s tuff. Us ers get a certain number of credits which they bid for the item, s o whoever
wins the a uction is the pers on who wanted it the mos t. Us ers get credits in three wa ys : every us er gets a certain number automatically, a nd
you can get more by a uctioning items , by referring friends , a nd by buying them. T he company is bas ed in S unnyvale, C a lifornia.
Ooyala United S tates www. ooya la. com Ooya la is a video technology company that provides indus try-leading s olutions for managing, dis tributing and monetizing high-qua lity video
online. F ounded by former G oogle engineers in April 2007, O oyala ta kes a novel approach at delivering video, targeting ads and collecting
video a nalytics . S ince launching its flags hip product, B acklot, in December of 2007, O oyala has s igned up over 1000 paying cus tomers
including W arner B rothers , A OL/B ebo, National G eographic, T V G uide a nd the G lam network. T he company is bas ed in Mountain V iew,
Overtone United S tates www. overtone-inc. com C alifornia . Inc. delivers brand monitoring and engagement to va rious enterpris es . It offers O pen Mic s oftware-as -a -s ervice integrated lis tening
Overtone,
s ys tem, which delivers actionable ins ights from cons umer comments and extracts actionable intelligence from uns tructured cus tomer-
genera ted content. T he company’s O pen Mic a ls o provides rea l time proces s ing, multi-cha nnel lis tening, and proven s calability. Overtone,
Inc. was formerly known as Is land Data C orpora tion. T he company wa s founded in 1995 and is bas ed in S an F rancis co, C alifornia. As of
01/05/2004, O vertone, Inc. is a s ubs idiary of LiveP ers on, Inc.
P opC ap G ames United S tates www. popcap. com P opC ap G a mes , Inc. develops and publis hes cas ual ga mes . Its games a re played on the W eb, des ktop computers , cell phones ,
s martphones , P DA s , pocket P C s , iP ods , iP hones , ga me cons oles , and in-flight entertainment s ys tems . T he company offers its products to
W eb portals , reta il s tores , mobile opera tors and developers , and game device ma nufacturers . P opC ap G ames , Inc. wa s founded in 2000
and is bas ed in S eattle, W as hington. It has operations in C hica go, Illinois ; S an F rancis co, C alifornia; S hanghai, C hina; Dublin, Ireland; and
R eality Mobile United S tates www. realitymobile. com R ancouver, B . C . , C anada. mobile video and data s ha ring technology. T he company was founded in 2003 a nd is bas ed in Herndon,
V eality Mobile LLC provides
S cout L abs United S tates www. s coutlabs . com V irginia .
S cout Labs is a powerful, web-ba s ed a pplication that finds s ignals in the nois e to companies build better products and s tronger cus tomer
relations hips . T he company provides technology and a collaborative platform for companies a nd their a gents to lis ten to cus tomers and
enga ge with them out acros s the Internet.
S ometrics United S tates s ometrics . com S ometrics , Inc. operates as an ana lytics and ad platform s tartup company s pecia lizing in s ocial media. It offers analytics a nd ad mana ging
s olutions that focus on s ocial networking platforms and applications . T he company als o provides s ocial advertis ing s olutions , s uch as
dis pla ys , engagements , and bra nd as s es s ments , as well as s ocial planners for advertis ers . In addition, it offers S ocial A nalytics that provide
analys is for s ocial applications and W ebs ites ; S ocial Ad Manager that helps to s erve and optimize ads to increa s e revenue acros s s ocial
media properties ; and V irtual C urrency Mana ger, a virtual currency platform des igned to provide an interface to manage dis pa ra te offer
networks and relations hips for publis hers . T he company s upports F acebook, Mys pace, B ebo, F riends ter, and hi5 platforms . S ometrics , Inc.
was founded in 2007 and is headquartered in L os Angeles , C alifornia .

S pigit United S tates www. s pigit. com S pigit, Inc. des igns , develops , a nd dis tributes s ocial networking s oftwa re for bus ines s innovation. It provides s trategic and technical
cons ulting, webs ite des igning, project foreca s ting, C R M applications , employee engagement tracking, web logs , and currency a nd idea
management s ervices . T he compa ny markets its products under Innova tionS pigit, IdeaS pigit, and P redictionS pigit brand names . S pigit, Inc.
is bas ed in P leas a nton, C alifornia.
Technorati United S tates www. technorati. com T echnora ti, Inc. engages in s earching, s urfacing, a nd organizing blogs and us er-generated content on the W eb. It offers various citizen
media on the W eb, which include blogs , videos , vlogs , podcas ts , photos , a nd games . T he company was founded in 2002 a nd is bas ed in
S an F rancis co, C alifornia .
Vdopia United S tates www. vdopia. com V dopia, Inc. operates a s an online video a dvertis ing network and platform compa ny. It enables advertis ers in India to a dvertis e on the online
video content. T he company's s olutions to content owners and publis hers include V DOAd network to advertis e on video content; V DOA d
pla tform with ca mpaign management tools to offer online video advertis ing to advertis ers /cus tomers ; B randC onnect Ad technology to deliver
C P Ms ; analytic tools to provide s tatis tics about a ds and video a nalytics for client’s videos ; and A P Is to crea te/publis h content. Its s olutions to
advertis ers , media planners , and marketers include publis her network, brand connect with various a d forma ts on various online Internet T V
cha nnels , advertis ing, meas urable branding, and reporting. V dopia, Inc. wa s incorporated in 2007 and is bas ed in S an J os e, C alifornia with
s ales and development offices in S an J os e, C alifornia; and G urgaon and Mumbai, India.

VE VO United S tates www. vevo. com V E V O opera tes as a mus ic video web s ite. T he company is bas ed in the United S tates .
ViVu United S tates www. vivu. tv V iV u, Inc. develops participative event platform that ena bles live video participa tion from a pers onal computer, Mac, and L inux without any
proprietary downloads . It offers a s olution for event organizers to create, publis h, and manage quality video events . T he company was
incorporated in 2008 and is bas ed in S unnyvale, C alifornia.
W atercooler United S tates www. watercooler-inc. com W atercooler, Inc. operates F a nS ection and T V Loop online communities that enable us ers to acces s a network of online fa n communities in
s ports a nd televis ion entertainment in the United S tates and internationally. T he company wa s founded in 2006 and is bas ed in Mountain
V iew, C alifornia.
Yext United S tates www. yext. com Y ext, Inc. provides online directories . It focus es on repres enting va rious bus ines s es acros s the United S tates . T he company wa s founded in
2006 and is bas ed in New Y ork, New Y ork.

Figure 24. Company Descriptions
Source. Company reports, Capital IQ, Crunchbase

RELEVANT DISCLOSURES APPLICABLE TO: NONE

LIST OF DISCLOSURE TERMS:

1. None applicable.

ANALYST CERTIFICATION
Each analyst of Research Capital Corporation whose name appears in this report hereby certifies that (i) the
recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii)
no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or
recommendations expressed in this research report.

I n f o r ma t i o n a b o u t Re s e a r ch C a p i t a l C o r p o r a t i o n ’ s Ra t i n g S y s t e m, t h e d i s t r i b u t i o n o f o u r r e s e a r ch t o cl i e n t s a n d t h e p e r ce n t a g e o f r e c o m me n d a t i o n s wh i c h a r e i n e a c h
o f o u r r a t i n g c a t e g o r i e s i s a v a i l a b l e o n o u r we b si t e a t ww w. r e s e a r ch c a p i t a l . c o m.

T h e i n f o r ma t i o n c o n t a i n e d i n t h i s r e p o r t h a s b e e n d r a wn f r o m s o u r c e s b e l i e ve d t o b e r e l i a b l e b u t i t s a c cu r a c y o r co mp l e t e n e ss i s n o t g u a r a n t e e d , n o r i n p r o vi d i n g i t
d o e s R e s e a r c h Ca p i t a l C o r p o r a t i o n a s s u me a n y r e sp o n si b i l i t y o r l i a b i l i t y . R e s e a r ch C a p i t a l C o r p o r a t i o n , i t s d i r e ct o r s , o f f i c e r s a n d o t h e r e mp l o y e e s ma y , f r o m t i me t o
t i me , h a v e p o si t i o n s i n t h e s e cu r i t i e s me n t i o n e d h e r e i n . Co n t e n t s o f t h i s r e p o r t c a n n o t b e r e p r o d u c e d i n wh o l e o r i n p a r t wi t h o u t t h e e xp r e ss e d p e r mi s si o n o f R e se a r ch
C a p i t a l C o r p o r a t i o n . ( U . S . I n s t i t u t i o n a l Cl i e n t s — Re s e a r ch C a p i t a l U . S. A . I n c. ( a wh o l l y o wn e d s u b si d i a r y o f R e s e a r c h C a p i t a l Co r p o r a t i o n ) a cc e p t s r e s p o n si b i l i t y f o r
t h e c o n t e n t s o f t h i s r e p o r t s u b je c t t o t h e t e r ms & l i mi t a t i o n s s e t o u t a b o v e . F i r ms o r i n s t i t u t i o n s r e ce i vi n g t h i s r e p o r t s h o u l d e f f e ct t r a n s a ct i o n s i n s e c u r i t i e s d i sc u s se d
i n t h e r e p o r t t h r o u g h R e s e a r ch C a p i t a l U . S . A . I n c. , a B r o k e r - D e a l e r R e g i s t e r e d wi t h t h e U n i t e d S t a t e s S e cu r i t i e s a n d E xc h a n g e C o m mi s si o n ) .

Tor on to 4 16. 8 60. 76 00 M ontr eal 51 4. 39 9. 150 0 V anco u ver 60 4. 66 2. 180 0 C al gar y 40 3. 26 5. 740 0 R egi na 306. 566. 7550

www.researchcapital.com

09 10 27 Web 2.0 Weekly

More Related Content

What's hot

Viewers also liked

Similar to 09 10 27 Web 2.0 Weekly

More from David Shore

Recently uploaded

09 10 27 Web 2.0 Weekly