This document provides an analysis of Google's new free turn-by-turn navigation feature for Android phones. It will negatively impact dedicated GPS device makers TomTom and Garmin, whose share prices dropped on the news. It also threatens Apple and BlackBerry, as they will need to purchase their own mapping data or ship phones without the free navigation. The new feature strengthens Android's position in the mobile market through free, innovative applications.
Introducing the Web 2.0 Weekly - Our weekly report will provide an ongoing framework for investors to identify key trends in Web 2.0, along with specific financial metrics by which to measure the success of the companies.
Several of the largest MMOG companies reported their Q4/08 results over the past week; including Shanda, Netease,
and The9. The MMOG market continued to grow on a sequential basis in Q4.
Introducing the Web 2.0 Weekly - Our weekly report will provide an ongoing framework for investors to identify key trends in Web 2.0, along with specific financial metrics by which to measure the success of the companies.
Several of the largest MMOG companies reported their Q4/08 results over the past week; including Shanda, Netease,
and The9. The MMOG market continued to grow on a sequential basis in Q4.
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.
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.
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 .
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.
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.
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.
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 - 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 - 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.
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.
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.
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 .
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.
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.
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.
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 - 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 - 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.
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
Alt. GDG Cloud Southlake #33: Boule & Rebala: Effective AppSec in SDLC using ...James Anderson
Effective Application Security in Software Delivery lifecycle using Deployment Firewall and DBOM
The modern software delivery process (or the CI/CD process) includes many tools, distributed teams, open-source code, and cloud platforms. Constant focus on speed to release software to market, along with the traditional slow and manual security checks has caused gaps in continuous security as an important piece in the software supply chain. Today organizations feel more susceptible to external and internal cyber threats due to the vast attack surface in their applications supply chain and the lack of end-to-end governance and risk management.
The software team must secure its software delivery process to avoid vulnerability and security breaches. This needs to be achieved with existing tool chains and without extensive rework of the delivery processes. This talk will present strategies and techniques for providing visibility into the true risk of the existing vulnerabilities, preventing the introduction of security issues in the software, resolving vulnerabilities in production environments quickly, and capturing the deployment bill of materials (DBOM).
Speakers:
Bob Boule
Robert Boule is a technology enthusiast with PASSION for technology and making things work along with a knack for helping others understand how things work. He comes with around 20 years of solution engineering experience in application security, software continuous delivery, and SaaS platforms. He is known for his dynamic presentations in CI/CD and application security integrated in software delivery lifecycle.
Gopinath Rebala
Gopinath Rebala is the CTO of OpsMx, where he has overall responsibility for the machine learning and data processing architectures for Secure Software Delivery. Gopi also has a strong connection with our customers, leading design and architecture for strategic implementations. Gopi is a frequent speaker and well-known leader in continuous delivery and integrating security into software delivery.
zkStudyClub - Reef: Fast Succinct Non-Interactive Zero-Knowledge Regex ProofsAlex Pruden
This paper presents Reef, a system for generating publicly verifiable succinct non-interactive zero-knowledge proofs that a committed document matches or does not match a regular expression. We describe applications such as proving the strength of passwords, the provenance of email despite redactions, the validity of oblivious DNS queries, and the existence of mutations in DNA. Reef supports the Perl Compatible Regular Expression syntax, including wildcards, alternation, ranges, capture groups, Kleene star, negations, and lookarounds. Reef introduces a new type of automata, Skipping Alternating Finite Automata (SAFA), that skips irrelevant parts of a document when producing proofs without undermining soundness, and instantiates SAFA with a lookup argument. Our experimental evaluation confirms that Reef can generate proofs for documents with 32M characters; the proofs are small and cheap to verify (under a second).
Paper: https://eprint.iacr.org/2023/1886
In his public lecture, Christian Timmerer provides insights into the fascinating history of video streaming, starting from its humble beginnings before YouTube to the groundbreaking technologies that now dominate platforms like Netflix and ORF ON. Timmerer also presents provocative contributions of his own that have significantly influenced the industry. He concludes by looking at future challenges and invites the audience to join in a discussion.
Generative AI Deep Dive: Advancing from Proof of Concept to ProductionAggregage
Join Maher Hanafi, VP of Engineering at Betterworks, in this new session where he'll share a practical framework to transform Gen AI prototypes into impactful products! He'll delve into the complexities of data collection and management, model selection and optimization, and ensuring security, scalability, and responsible use.
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.
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.
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.
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:
State of ICS and IoT Cyber Threat Landscape Report 2024 previewPrayukth K V
The IoT and OT threat landscape report has been prepared by the Threat Research Team at Sectrio using data from Sectrio, cyber threat intelligence farming facilities spread across over 85 cities around the world. In addition, Sectrio also runs AI-based advanced threat and payload engagement facilities that serve as sinks to attract and engage sophisticated threat actors, and newer malware including new variants and latent threats that are at an earlier stage of development.
The latest edition of the OT/ICS and IoT security Threat Landscape Report 2024 also covers:
State of global ICS asset and network exposure
Sectoral targets and attacks as well as the cost of ransom
Global APT activity, AI usage, actor and tactic profiles, and implications
Rise in volumes of AI-powered cyberattacks
Major cyber events in 2024
Malware and malicious payload trends
Cyberattack types and targets
Vulnerability exploit attempts on CVEs
Attacks on counties – USA
Expansion of bot farms – how, where, and why
In-depth analysis of the cyber threat landscape across North America, South America, Europe, APAC, and the Middle East
Why are attacks on smart factories rising?
Cyber risk predictions
Axis of attacks – Europe
Systemic attacks in the Middle East
Download the full report from here:
https://sectrio.com/resources/ot-threat-landscape-reports/sectrio-releases-ot-ics-and-iot-security-threat-landscape-report-2024/
Smart TV Buyer Insights Survey 2024 by 91mobiles.pdf91mobiles
91mobiles recently conducted a Smart TV Buyer Insights Survey in which we asked over 3,000 respondents about the TV they own, aspects they look at on a new TV, and their TV buying preferences.
By Design, not by Accident - Agile Venture Bolzano 2024
09 11 03 Web 2.0 Weekly
1. SOFTWARE & SERVICES 3 NOVEMBER 2009
DAVID SHORE, CFA, MBA 416.860.6784
WEB 2.O WEEKLY david.shore@researchcapital.com
Damian Wojcichowsky, CFA (Associate), 416.860.7652
YOUR GPS SYSTEM IS OBSOLETE ALREADY…
GO OGL E P RO V ID E S F R E E V OI C E- B A S ED T UR N- B Y- T UR N D RI VI NG D IR E CT IO NS
Google Maps and Google Streetview are among the most popular applications in the Google stable. Layered on to
these, Google has recently announced, will be free audio turn-by-turn navigation directions included with every
Android mobile OS shipped. This free innovation is made possible courtesy of the army of automobiles prowling the
world’s city streets building Google’s proprietary mapping database (at considerable cost to Google, no doubt).
DO OM F O R T O MT O M, GA RMI N
Not unexpectedly, the share prices of the proprietary (and non-free product vending) GPS device makers, TomTom
and Garmin, plummeted on the news of Google’s latest application. Observe the latest 10-day stock charts for the two
GPS device makers.
AN D ROI D A T H R EA T T O P RO P RI ET AR Y P L AT F O R MS , SU C H A S A PP L E A N D BL A C KB E R RY
This Google development threatens the two leading smartphone players, Apple and BlackBerry. Since both of these
companies must purchase their own mapping data to offer a similar service, they are faced with the choice of taking a
hit to margins or shipping their smartphones without free navigation.
AN D ROI D ST E A DIL Y S IN KI NG IT S HO O KS I NT O T H E M OB IL E M A RK ET
The possibilities for disruption in the mobile device space on the part of Google and its ad-based revenue model are
beginning to come to light with every new, free application press release. Though Android-equipped phones have not
made the same kind of splash as the iPhone nor have they the user-base loyalty of the BlackBerry, we expect that
developments along the lines of Google’s latest will continue to bring the Android phone segment into the forefront.
CAPITAL MARKETS ACTIVITY SLOWS DOWN AS OCTOBER WINDS UP
October finishes limping: Total transaction value in the W eb 2.0 universe for October is $170.8 (vs. $151.2 million
at time of last publication). The month ended with 26 financings in the sector averaging $6.6 million each (vs. an
average of $7.6 million last week). In comparison, total capital raised in September was $232.8 million, averaging
$9.0 million (26 deals); August was $221.6 million, averaging $7.6 million (29 deals); and July (35 deals) $191.4
million, averaging $5.5 million.
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 $69 billion (Figure 1). The median market cap for the group is $41.8 million, with average trailing revenue
of $162 million (median $57 million). The companies are also generally profitable with a median EBITDA margin of 12.6%.
On a valuation basis, the overall average is 5.2x trailing revenue (median 1.7x) and 10.2x trailing EBITDA (median 7.6x).
Twenty of the companies have more than 500 employees.
C omparable C ompany Analys is > Web 2.0
Trading C urrent US D Market US D L TM Total US D L TM Total E B ITDA TE V/L TM TE V/L TM
C ompany Name L TM as of Ticker E xc hange C urrency HQ P rice C ap ($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 14,500 105. 2 108.7 25. 9 23. 8% 0. 7x 2. 8x NA
AQ Interactive, Inc. 6/30/2009 3838 TS E JPY J a pan 46,800 28. 5 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. 03 0.9 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. 08 4.2 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 5.9 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. 35 249. 1 361.6 25. 1 6.9% 0. 7x 9. 7x 2, 227
C hangyou. com L imited 9/30/2009 C Y OU Na s daqG S US D C hina 30. 35 1,669. 3 255.3 157.4 61. 7% 5. 3x 8. 6x 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 426 1,104. 8 61. 6 34. 7 56. 3% 16.8x 29. 8x 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 0.7 2. 5 (1.2) -45. 8% 0. 3x - 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 83. 6 89. 8 9.7 10. 8% 0. 7x 6. 6x NA
DADA S pA 6/30/2009 C M: DA CM E UR Italy 7. 07 167. 7 241.9 31. 8 13. 1% 0. 9x 6. 8x NA
DXN Holdings B hd 5/31/2009 DX N K LS E MY R Ma la ys ia 0. 64 41. 6 77. 1 11. 1 14. 4% 0. 7x 5. 1x 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. 05 3.9 1. 0 (1.4) NM 5. 9x - 7
DigitalT own, Inc. 8/31/2009 DG T W OT C B B US D United S ta tes 1. 01 27. 6 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. 40 21. 5 0. 6 (3.4) NM 38.6x - NA
E olith C o. Ltd. 12/31/2008 A041060 K OS E KR W S outh K orea 530 32. 2 15. 4 (3.6) -23. 6% 2. 2x - NA
E xtens ions , Inc. 6/30/2009 E XT I OT C P K US D United S ta tes 0. 40 17. 8 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. 79 86. 4 5. 3 (5.1) -95. 2% 15.3x - NA
F rogs ter Interactive P ictures AG 6/30/2009 FRG XT R A E UR G ermany 19. 05 71. 5 9. 6 (4.5) -47. 0% 7. 3x - NA
G ama nia Digita l E ntertainment C o., Ltd. 6/30/2009 6180 GTS M TWD T aiwa n 44. 80 209. 8 140.6 25. 1 17. 9% 1. 3x 7. 4x NA
G ameOn C o Ltd. 6/30/2009 3812 TS E JPY J a pan 85,200 92. 1 81. 9 20. 1 24. 5% 0. 2x 0. 9x 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 7 1,644. 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 3. 98 217. 0 183.6 NM NM 0. 8x - 751
G ravity C o., Ltd 6/30/2009 GR VY Na s daqG M US D S outh K orea 1. 57 43. 6 49. 1 16. 6 33. 9% - - 469
G ree, Inc. 6/30/2009 T S E : 3632 TS E JPY J a pan 5,090 2,548. 3 156.0 93. 7 60. 1% 15.6x 25. 9x NA
G ungHo O nline E ntertainment, Inc. 6/30/2009 3765 OS E JPY J a pan 211,500 271. 0 119.5 26. 6 22. 2% 2. 0x 8. 9x NA
HanbitS oft, Inc. 6/30/2009 A047080 K OS E KR W S outh K orea 3,420 62. 8 60. 7 1.4 2.3% 0. 8x 34. 8x NA
IAC /InterActiveC orp. 9/30/2009 IAC I Na s daqG S US D United S ta tes 19. 02 2,510. 1 1, 359. 6 82. 4 6.1% 0. 6x 10. 5x 3, 200
IAS E nergy, Inc. 4/30/2009 IAS A. E OT C B B US D C anada 0. 12 8.5 0. 0 (0.6) NM - - NA
is eemedia Inc. 3/31/2009 IE E T S XV C AD C anada 0. 15 6.8 1. 6 (5.0) NM 3. 7x - 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 0. 95 10. 9 1. 2 (1.9) NM 8. 3x - NA
LiveW orld Inc. 6/30/2009 LVW D OT C P K US D United S ta tes 0. 04 1.2 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. 29 22. 1 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 5.4 0. 1 (2.5) NM - - 14
Mixi, Inc. 6/30/2009 2121 TS E JPY J a pan 781000. 00 1,345. 8 136.8 46. 2 33. 8% 9. 0x 26. 5x NA
Modern T imes G roup Mtg AB 9/30/2009 MT G B OM SEK S weden 307. 10 2,906. 3 2, 002. 6 282.9 14. 1% 1. 7x 12. 2x 2, 969
MO K O .mobi Limited 6/30/2009 MK B AS X AUD Aus tralia 0. 09 8.3 0. 7 (2.4) NM 10.6x - NA
Myriad G roup AG 6/30/2009 MY R N SWX C HF S witzerland 4. 89 209. 7 63. 0 3.4 5.4% 3. 3x - 405
NE O W IZ G ames C orpora tion 12/31/2008 A095660 K OS E KR W S outh K orea 38600. 00 681. 9 207.3 55. 7 26. 8% 3. 2x 12. 1x NA
NetDragon W ebS oft, Inc. 6/30/2009 777 S E HK HK D C hina 5 326. 7 89. 3 25. 7 28. 7% 2. 0x 7. 0x 3, 109
Neteas e. com Inc. 6/30/2009 NT E S Na s daqG S US D C hina 37. 69 4,878. 1 472.4 297.4 63. 0% - - 3, 109
NeuLion Incorporated 6/30/2009 T S X :NLN TS X C AD C anada 0. 70 71. 1 21. 5 (13. 0) -60. 3% 2. 8x - 237
NeXplore C orporation 6/30/2009 NX P C OT C P K US D United S ta tes 1 41. 8 1. 7 (13. 3) NM 27.0x - NA
Ngi G roup Inc. 6/30/2009 2497 TS E JPY J a pan 27550. 00 38. 2 93. 0 6.9 7.4% - - NA
Northgate T echnologies L imited 6/30/2009 590057 BSE INR India 29. 30 21. 3 82. 9 (41. 5) -50. 0% 0. 3x - NA
O pen T ext C orp. 9/30/2009 OT E X Na s daqG S US D C anada 36. 93 2,082. 2 814.5 211.1 25. 9% 2. 6x 10. 2x 3, 411
O penwave S ys tems Inc. 9/30/2009 OP W V Na s daqG S US D United S ta tes 2. 06 172. 0 190.5 5.6 3.0% 0. 4x 11. 9x 590
P erfect W orld C o. , Ltd. 6/30/2009 PWRD Na s daqG S US D C hina 43. 24 2,178. 9 255.6 142.2 55. 6% 0. 7x 1. 2x 2, 096
P NI Digital Media Inc. 6/30/2009 T S X V :P N T S XV C AD C anada 1. 80 56. 6 21. 0 2.3 11. 0% 2. 6x 23. 6x NA
Q uepa s a C orp. 6/30/2009 QP S A OT C B B US D United S ta tes 1 15. 3 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 45. 20 3,039. 9 629.0 296.7 47. 2% - - 3, 124
S hutterfly, Inc. 9/30/2009 S FLY Na s daqG S US D United S ta tes 14. 24 365. 3 223.1 28. 2 12. 6% 1. 1x 9. 0x 514
S K C ommunications C o., Ltd. 12/31/2008 A066270 K OS E KR W S outh K orea 7050. 00 247. 4 192.7 12. 5 6.5% 1. 3x 19. 7x NA
S NAP Interactive, Inc. 6/30/2009 S TVI OT C B B US D United S ta tes 0 2.3 3. 5 0.9 27. 0% 0. 2x 0. 7x 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. 50 22. 1 0. 0 (5.6) NM - - NA
S ohu. com Inc. 9/30/2009 S O HU Na s daqG S US D C hina 54. 07 2,072. 7 501.0 218.5 43. 6% 3. 1x 7. 0x 3, 197
S park Networks , Inc. 6/30/2009 L OV AME X US D United S ta tes 3 59. 3 50. 5 10. 8 21. 3% 1. 1x 5. 3x 183
S pectrumDNA, Inc. 6/30/2009 S P XA OT C B B US D United S ta tes 0 7.3 0. 1 (2.5) NM - - 7
T encent Holdings Ltd. 6/30/2009 700 S E HK HK D C hina 143 33, 542.7 1, 391. 6 680.3 48. 9% 26.6x - 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 7. 82 196. 2 250.6 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. 41 73. 8 67. 0 1.9 2.9% 0. 1x 4. 7x 310
T ree.C om, Inc. 6/30/2009 TR E E Na s daqG M US D United S ta tes 8. 05 87. 7 216.6 (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 7. 86 659. 0 949.8 203.2 21. 4% 1. 0x 4. 5x 1, 469
UOMO Media, Inc 7/31/2009 UO MO OT C B B US D C anada 0 6.6 0. 8 (0.4) -54. 2% 8. 9x - NA
V alueC lick Inc. 9/30/2009 V C LK Na s daqG S US D United S ta tes 9 802. 7 545.7 130.8 24. 0% 1. 2x 4. 9x 1, 189
V OIS , Inc. 6/30/2009 V O IS OT C B B US D United S ta tes 0 3.3 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 3. 03 35. 9 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. 43 21. 7 5. 3 (4.5) -84. 9% 4. 3x - 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 34. 88 269. 3 58. 9 17. 0 28. 8% 3. 7x 12. 8x 246
Y D O nline C orp. 12/31/2007 A052770 K OS E KR W S outh K orea 6810. 00 85. 6 57. 4 12. 4 21. 6% 1. 6x 7. 6x NA
Y nk K orea Inc. 12/31/2008 A023770 K OS E KR W S outh K orea 3900. 00 17. 4 11. 9 1.3 10. 5% - - NA
High 33, 542.7 2,002. 6 680. 3 63. 0% 49.2x 34. 8x 6, 421
Low 0.0 0. 0 -41.5 -98. 9% - - 1
Average 780.0 161.7 39.9 6.2% 5.2x 10.2x 936
Median 41. 8 57.1 1. 7 12. 6% 1. 7x 7. 6x 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 )
October finishes limping: Total transaction value in the W eb 2.0 universe for October is $170.8 (vs. $151.2 million at
time of last publication). The month ended with 26 financings in the sector averaging $6.6 million each (vs. an average of
$7.6 million last week). In comparison, total capital raised in September was $232.8 million, averaging $9.0 million (26
deals); August was $221.6 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 8.0
7.0 7.0 7.1
6.5 6.6 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 end: 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 $10 million or less. For additional details on financings, see Figures 23
and 24 (at end of note).
Financing & M/A Summary - Last Three Months
200.0
180.0
160.0
140.0
120.0
Nov-09
(US$m)
Oct-09
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
HiveLive
Boxee
Polyvore
Fwix
Yext
Box.net
RightsFlow
Skype
Zoove
RichRelevance
Ooyala
Edo Interactive
Jobvite
InnoCentive
Booyah
YuMe
Z2Live
Overtone
Greystripe
DailyBooth
iSyndica
OnLive
Aviary
Mocapay
Vantrix
Fizzback
Roblox
Linkedex
Twitter
Dopplr
MOG
Unisfair
Fluther
Scoopler
Mint
Turbine
Friends Reunited
Ensequence
iLike
Engine Yard
Traffiq
CubeTree
Balihoo
Vuclip
Fanbase
Vdopia
NeoEdge
Alliance Health
ViVu
OurStage
Scoreloop
Godengo
Tremor Media
Plista
FourSquare
Onehub
EduFire
ChessCube
Hot Potato
IngBoo
Chango
Listia
NowPublic
Ecast Network
Livebookings
Scout Labs
Conduit Labs
MashLogic
Tiny Pictures
DataSync
Linksify
Gigpark
Smith & Tinker
VEVO
HubSpot
Spigit
ScanScout
OneRiot
iSocket
StatusNet
Aurora Feint
KODA
Technorati
Loomia
TransGaming
PopCap Games
Riot Games
Sometrics
FeedRoom
Bill.com
Amie Street
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 (12). Advertising continues to be among the highest
activity sectors with 11 deals in the past quarter. Gaming follows with nine transactions followed by Collaboration (7)
(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
2,025.0 192.3 122.0 100.9 97.4 70.3 70.3 46.0 37.5 37.9 35.5 34.0 26.1 17.1 15.8 14.0 13.2 13.0 11.5 3.9 3.6 2.2 2.0 1.3
0.0
Comment/Reputation
Social Commerce
Communities
Gaming
Microblog
Collaboration
Enterprise
Mobile
Media
Publishing
Online Learning
Music
SMS/Voice
Infrastructure
Search
Advertising/Mobile
Mobile Ad
Social Networks
Advertising
Video
Crowdsourced
Virtual World
Aggregation
Analytics
Vertical
Content
# companies
1 3 9 2 12 11 6 4 7 4 5 4 4 3 5 2 1 2 4 1 2 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
250
200
150
100
50
0
11/3/2008
11/17/2008
12/1/2008
12/15/2008
12/29/2008
1/12/2009
1/26/2009
2/9/2009
2/23/2009
3/9/2009
3/23/2009
4/6/2009
4/20/2009
5/4/2009
5/18/2009
6/1/2009
6/15/2009
6/29/2009
7/13/2009
7/27/2009
8/10/2009
8/24/2009
9/7/2009
9/21/2009
10/5/2009
10/19/2009
11/2/2009
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 declines: Eight companies in our universe had positive stock price performances over the past week
(for stocks with prices greater than $1) (Figure 6), while 38 companies showed negative 1-week returns.
1 Week P rice P erformance
S park Netw orks , Inc. 12.5%
Webz en Inc. 9.5%
My riad Group A G 8.9%
Y nk K orea Inc. 6.6%
PNI Digital Media Inc. 6.5%
Mix i, Inc. 6.0%
G ree, Inc. 1.0%
Neteas e.com Inc. 0.7%
OA O R B C Information S y s tems 0.0%
K ings of t Co. Ltd. 0.0%
Cy berplex Inc. 0.0%
Chines e Gamer International -0.5%
Fluid Mus ic Canada , Inc. -0.6%
Tree.Com, Inc. -0.9%
LookS mart, Ltd. -1.5%
IA C/InterA ctiveCorp. -1.7%
XING A G -1.9%
The9 Limited -2.9%
S handa Interactive Entertainment Ltd. -3.0%
G ravity Co., Ltd -3.1%
A Q Interactiv e, Inc. -3.3%
S hutterf ly , Inc. -3.3%
G ameOn Co Ltd. -3.6%
Tencent Holdings Ltd. -3.8%
United Online Inc. -3.9%
HanbitS of t, Inc. -3.9%
Giant Interactive G roup, Inc. -4.0%
Y D Online Corp. -4.2%
Frogs ter Interactiv e Pictures A G -4.3%
NEOWIZ Games Corporation -4.7%
CDC Corp. -4.9%
DA DA S pA -5.4%
Perfect World Co., Ltd. -5.7%
Modern Times G roup Mtg A B -5.7%
Changy ou.com Limited -6.0%
Open Tex t Corp. -6.3%
NetDragon WebS of t, Inc. -6.6%
V alueClick Inc. -7.1%
Eolith Co. Ltd. -7.8%
Gamania Digital Entertainment Co., -8.3%
Ngi G roup Inc. -9.1%
S K Communications Co., Ltd. -9.6%
S ohu.com Inc. -9.8%
A ctoz S of t Co., Ltd. -11.0%
Quepas a Corp. -11.1%
G igaMedia Ltd. -11.9%
TheS treet.com, Inc. -13.3%
Openw ave S y s tems Inc. -24.0%
DigitalTow n, Inc. -49.5%
-0.6 -0.5 -0.4 -0.3 -0.2 -0.1 0 0.1 0.2
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
S ohu.com Inc. (Nas daqGS : S OHU) Q uarterly Update to S ohu.com, Inc. ’s E quity B uyback on O n O ctober 26, 2009, S ohu. com, Inc. announced that during the qua rter ending S eptember 30, 2009, it has ma de no
O ctober 26, 2009 repurcha s es under the program. As of S eptember 30, 2009, S ohu has repurcha s ed 501,686 s ha res a t an avera ge price of
$39.86 for a tota l cons ideration of $20 million under the program.
C hangyou.com L imited C ha ngyou. com L imited R eports Unaudited C ons olidated C hangyou. com Limited 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 ua rter a nd Nine Months S eptember 30, 2009. F or the qua rter, the company's total revenues were $68, 684, 000 a gains t $54,604,000 a year ago. T he
E nded S eptember 30, 2009; P rovides E arnings increas es were mainly due to increas ed popula rity of the company's flags hip game, T L B B . O perating profit wa s
G uidance for the F ourth Q ua rter of 2009 $42,288, 000 agains t $32, 474,000 a year ago. Income before income ta x expens e wa s $43, 288,000 aga ins t $32,791, 000 a
yea r ago. Net income was $37,794,000 agains t $32, 084, 000 a year a go. Diluted net income per ADS wa s $0.71 a gains t
$0. 68 a year ago. Non-G AAP opera ting profit was $45,842, 000 a gains t $33, 725,000 a yea r ago. Non-G AAP net income
was $41, 348, 000 a gains t $33, 335,000 a yea r 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.
T he compa ny es timates tota l revenues for the fourth qua rter of 2009 to be between $69.0 million and $71. 0 million. Non-
G AAP net income for the fourth quarter of 2009 to be between $41. 5 million and $42.5 million. Non-G AAP fully diluted
earnings per ADS for the fourth quarter of 2009 to be between $0. 78 and $0.80.
S ohu.com Inc. (Nas daqGS : S OHU) S ohu.com Inc. R eports Unaudited C ons olida ted S ohu.com Inc. reported unaudited cons olida ted earnings res ults for the third qua rter a nd nine months ended S eptember 30,
E arnings R es ults for the T hird Q ua rter a nd Nine Months 2009. F or the quarter, the compa ny reported net income a ttributable to company of $37,354, 000 or $0. 88 per s hare on tota l
E nded S eptember 30, 2009; P rovides E arnings revenue of $136, 585,000 aga ins t net income a ttributa ble to company was $40,261, 000 or $1. 02 per s ha re on total revenue
G uidance for the F ourth Q ua rter of 2009 of $120, 676,000 in the s ame period of las t year. O pera ting 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 a gains t $45, 230,000 in the s ame period of las t year.
Income from continuing operations was $47, 080, 000 a gains t $40, 238,000 in the s a me period of las t yea r. As per non-
G AAP , net income attributable to company was $40,921, 000 or $0. 96 per s hare on tota l revenue of $136,585, 000 agains t
net income attributable to company was $42,822, 000 or $1. 08 per s hare on tota l revenue of $120,676, 000 in the s a me
period of las t year. As per non-G AAP , operating profit was $57, 077,000 agains t $46,319, 000 in the s a me period of las t yea r.
T he compa ny provided earnings guidance for the fourth quarter of 2009. It es tima tes tota l revenues to be between
$134.5 million and $138. 5 million. It es tima tes non-G AAP net income before deducting the s ha re of non-G AAP net
income perta ining to the non-controlling interes t in C ha ngyou to be between $49. 5 million to $51. 5 million. After
deducting the s hare of non-G AAP net income pertaining to the non-controlling interes t in C hangyou, it es timates
non-G AAP net income to be between $35.0 million to $37.0 million a nd non-G AAP fully diluted earnings per s ha re to
be between 90 cents and 95 cents . C ons idering its s hare in C hangyou, the es timated impa ct of this expens e is
expected to reduce its fully diluted earnings per s hare for the fourth quarter of 2009 under US G AAP by US 6 cents to
US 8 cents .
Quepas a C orp. (OTC B B : QP S A) Q uepas a La unches Developer Interface and O pen Q uepas a C orp. a nnounced the launch of its Developer Interface and O pen S ocial S andbox. T he launch of the Developer
S ocial S a ndbox Interfa ce is pa rt of Q uepas a's overall s trategy to open the s ite to third party O pen S ocial developers who would like to
develop applica tions for its global audience. T he compa ny believes that this new Developer Interfa ce and O pen S ocial
S andbox will become an ea s y mechanis m for developers to tes t a nd s ubmit their applica tions for inclus ion in the s ite's
Application a nd/or G a mes s ections a nd thus enhance the overall us er experience a nd drive s ite traffic and monetiza tion.
T he Developer Interface cons is ts of a toolbox that developers us e when s ubmitting a n O pen S ocia l application for inclus ion
on any s ocial s ite. T he toolbox includes documentation of the interfaces a vailable, a news area, a community built for the
developers where they can communicate and interact with other application developers a s well as with Quepa s a's
development tea m, a nd the O pen S ocial S a ndbox where they can tes t completed applications with va lid tes t data.
IAC /InterActiveC orp. (Nas daqG S : IAC I) Update to IAC /InterActiveC orp’s E quity B uyback IAC /InterActiveC orp announced that it has repurcha s ed approximately 5,600, 000 s hares at an average price of $16. 69 per
s hare during the qua rter ended S eptember 30, 2009. T ill J une 30, 2009, IAC has repurcha s ed 22,874, 884 s hares for a total
cos t of $653.16 million under the progra m. As of S eptember 30, 2009, the company has repurcha s ed approximately
28, 474,884 s hares for a tota l of $746. 62 million.
Open Text C orp. (Nas daqG S : OTE X) O pen T ext C orp. announces an E quity B uyback O pen T ext C orp. (Nas da qG S : O T E X ) announced its intention to ma ke a normal cours e is s uer bid through the facilities of
the NAS DAQ G loba l S elect Ma rk et on O ctober 27, 2009. Under the bid, O pen expects to repurcha s e approximately up to
2,819, 037 s hares . T he maximum number of s hares tha t ma y be purcha s ed is calculated as 5% of the outs tanding common
s hares of O pen T ext at the beginning of the bid. T he repurcha s es over the NAS DAQ could commence in November 2009 if
des irable. T he bid will expire one year from the commencement date.
IAC /InterActiveC orp. (Nas daqG S : IAC I) IAC /InterActiveC orp. R eports Unaudited C ons olida ted IAC /InterActiveC orp. reported unaudited cons olida ted earnings res ults for the third qua rter a nd nine months ended
E arnings R es ults for the T hird Q ua rter a nd Nine Months S eptember 30, 2009. F or the qua rter, the company reported net income attributa ble to IAC s hareholders of $21. 6 million or
E nded S eptember 30, 2009 $0. 16 per diluted s hare on revenue of $336. 5 million agains t net los s attributable to IAC s hareholders of $14. 8 million or
$0. 11 per diluted s hare on revenue of $369. 2 million a year a go. E a rnings from continuing operations were $23.8 million or
$0. 18 per diluted s hare aga ins t los s from continuing operations $1. 2 million or $0. 01 per diluted s hare a year ago. O perating
income was $7.1 million a gains t operating los s of $22.6 million a year a go. E a rnings from continuing operations before
income taxes were $58. 08 million a gains t los s from continuing operations before income taxes of $86. 6 million a yea r ago.
Adjus ted E P S was $0. 34 agains t adjus ted los s per s hare of $0. 14 a year ago.
S ocial Media Ventures Inc. S ocial Media V entures Inc. S igns Marketing Agreement S ocial Media V entures Inc. announce tha t it has s igned a marketing a ffiliate a greement with P ets criptions .com.
(OTC P K : S MVI) with P ets criptions . com P ets criptions . com is a provider of pharma ceuticals , medicine, a nd other innova tive products for pets . P ets criptions .com
offers pet owners acces s to inexpens ive pet products including medicine a nd pha rmaceutica ls . T he online reta iler offers
direct s hipments of pet pha rmaceutica ls and other pet s upply products directly to its cus tomers , offering cus tomer s avings
on a wide arra y of pet medicines . All products a re ins pected by the K entucky B oard of P ha rmacy.
Figure 7a. Key Developments
Source. Capital IQ
9. Page 9
K ey Developments - c ontinued
C ompany Headline Notes
Open Text C orp. (Nas daqG S : OTE X) O pen T ext C orp. Announces Unaudited C ons olida ted O pen T ext C orp. announced unaudited cons olidated fina ncial res ults for the firs t quarter ended S eptember 30, 2009. T ota l
F inancia l R es ults for the F irs t Q ua rter E nded S eptember revenue for the firs t quarter wa s $211.4 million, up 16% compa red to $182.6 million for the s a me period in the prior fis cal
30, 2009 yea r. Adjus ted net income in the quarter was $32. 8 million or $0.58 per s hare on a diluted ba s is , up 16% compared to $28. 2
million or $0. 53 per s hare on a diluted bas is for the s a me period in the prior fis cal year. Net income in accordance with U. S .
generally accepted accounting principles wa s $1.7 million or $0.03 per ba s ic a nd diluted s hare compared to $14. 7 million or
$0. 28 per s ha re on a diluted bas is for the s ame period in the prior fis cal yea r. T he company reported income before income
tax of $5.186 million and income from opera tions of $4. 792 million compared to income before income ta x of $20. 712
million and income from opera tions of $22. 977 million for the s ame period of la s t year. T he compa ny reported net cas h
provided by opera ting activities of $4.502 million a nd additions of ca pital as s ets , net of $7.665 million compared to net cas h
provided by opera ting activities of $24. 813
million and a dditions of capital a s s ets , net of $3.887 million for the s ame period of las t year.
ValueC lic k Inc. (Nas daqG S : VC L K ) V alueC lick Inc. R eports Unaudited C ons olida ted V alueC lick Inc. reported unaudited cons olida ted earnings res ults for the third qua rter a nd nine months ended S eptember
E arnings R es ults for the T hird Q ua rter a nd Nine Months 30, 2009. F or the qua rter, revenue was $130.2 million, adjus ted-E B IT DA of $33. 4 million. T he C ompany genera ted
E nded S eptember 30, 2009 ; P rovides E arnings approximately $22. 6 million in free cas h flow in the third qua rter, defined as net cas h from opera tions les s capital
G uidance for the F ourth Q ua rter of 2009 expenditures . G AAP net income was $25.0 million, or $0. 29 per bas ic and diluted common s hare. T he C ompany recorded
an income tax benefit in the third quarter of 2009 of $2.7 million due to favorable income tax adjus tments recorded in the
qua rter. E xcluding thes e adjus tments and as s uming the normaliz ed 42% effective tax rate included in the company's
previous ly-is s ued third quarter guida nce, net income would have been $13. 0 million, or $0. 15 per diluted common s hare.
Non-G AAP net income, which excludes dis continued operations , s tock -bas ed compens a tion and a mortiz ation of inta ngible
as s ets wa s $30. 3 million, or $0. 34 per diluted common s hare. T he company reported net income of $1.999 million or $0.02
per bas ic and diluted s hare on revenue of $148.065 million for the third qua rter of 2008. T he company reported income before
T he compa ny provided earnings guidance for the fourth quarter of 2009. T he company expects adjus ted E B IT DA
of $32 million to $35 million on revenue of $128 million to $138 million for the fourth qua rter of 2009. T he company
expects G AAP diluted net income per common s ha re of $0. 15 to $0.16 a nd Non-G AAP diluted net income per
common s hare of $0.21 to $0. 22 for the fourth qua rter of 2009.
S handa Interactive E ntertainment L td. S handa Interactive E nterta inment Ltd. , Annua l G eneral S handa Interactive E nterta inment Ltd., Annua l G enera l Meeting, O ct 28, 2009, at 10:00 C C T -C hina C oas t, US S R Zone 7.
(Nas daqG S :S NDA) Meeting, O ct 28, 2009 Loca tion: Is land S hangri-La, L evel 7, executive boardroom, P a cific P lace, S upreme C ourt R oad, C entral, Hong K ong.
Agenda: T o elect 8 directors to s erve for the ens uing year or until their s ucces s ors are elected and duly qua lified; and to
cons ider any other bus ines s properly brought before the meeting.
Quepas a C orp. (OTC B B : QP S A) Q uepas a C orp. - C onference P res entation C a ll T o communicate progres s achieved in developing its bus ines s model
S hutterfly, Inc . (Nas daqG S :S FL Y) S hutterfly Inc. R eports C apita l E xpenditure for the T hird S hutterfly Inc. reported capita l expenditure of $4. 9 million for the third quarter ended S ep. 30, 2009, which included $2. 7
Q uarter E nded S ep. 30, 2009; P rovides F ree C as h F low million for technology equipment a nd s oftware, approximately $1. 1 million for ma nufacturing equipment and building
O utlook for the Y ear 2009 improvements a nd $1. 1 million in capita liz ed s oftware development cos ts .
T he compa ny now expects full year 2009 free cas h flow to ra nge from approximately $14 million to a pproxima tely $22
million.
Open Text C orp. (Nas daqG S : OTE X) O pen T ext C orp. Announces New R elea s e of its O pen T ext C orp. announced a new relea s e of its enterpris e porta l s olution, V ignette P ortal vers ion 8. 0. T he s olution allows
E nterpris e P ortal S olution, V ignette P orta l V ers ion 8.0 organiz ations to provide cus tomers , employees a nd pa rtners with a rich internet experience where they can find relevant
and pers onalized informa tion aggrega ted from multiple bus ines s and cons umer-ba s ed s ys tems . V ignette P orta l 8. 0
s implifies the adminis tration a nd creation of dynamic, content-rich W eb s ites with the ability to rapidly s yndicate porta l
applications acros s W eb properties powered by multiple s ys tems . V ignette P orta l 8 from O pen T ext expands on the
vers a tility and rich interopera bility a fforded a pioneer in the enterpris e portal s pace. It helps bus ines s es unify their W eb
s oftware portfolios into s leek, eas y-to-us e W eb s ites a nd allows thos e s a me bus ines s es to engage cus tomers and partners
with rich a nd s ocially ena bled W eb experiences . T he relea s e of P ortal 8. 0 not only demons trates O pen T ext's continued
commitment to V ignette cus tomers and technology, but als o ena bles additional s ocial media ca pabilities that align with the
company's s tra tegic development of E nterpris e 2. 0 s olutions . O pen T ext recently announced that it plans to enhance its E C M S uite w
technology from its exis ting W eb S olutions and V ignette. B y offering a variety of s olutions , the company will
allow organiz ations -regardles s of s iz e a nd indus try-to s ucces s fully addres s their bus ines s needs .
Tencent Holdings L td. (S E HK : 700) C hina Unicom T eams Up with T encent's T enP ay for T enpay, an online payment s ervice operated by C hina's T encent H oldings Ltd. , has s igned a contra ct with C hina U nicom
O nline P ayments (Hong K ong) Ltd. to provide online pa yment s ervices . Under the terms of the contract, the carrier's us ers ca n us e T enpay to
recharge their phones via C hina Unicom's online s ervice center and a pply for C hina Unicom's online value-added s ervices .
T hey can als o buy prepaid cards , mobile hands ets and 3G data cards from the ca rrier's online s tore. T encent's T enpay
handled €2. 53 billion worth of tra ns actions in the s econd quarter of 2009. C hina Unicom will a ls o us e T enpay's e-billing
s ervices to handle pa yments between online s ervice centers and provincial divis ions .
OAO R B C Information S ys tems O AO R B C Information S ys tems R eaches $208 Million O AO R B C Information S ys tems reached a $208 million debt res tructuring deal with the creditors .
(R TS :R B C I) Debt R es tructuring Deal
K ings oft C o. L td. (S E HK : 3888) K ings oft La unches W ap. s houji. cn K ings oft C o. L td. la unched wireles s Internet webs ite wa p.s houji.cn in an attempt to offer va rious mobile phone application
s ervices for us ers . S ince the open beta tes ting on O ctober 1, 2009, wa p.s houji.cn has been luring 600,000 unique vis itors at
mos t per day, with da ily pa ge view of 2.3 million or s o. T he new s ite, which offers mobile phone-ba s ed s oftware, ga me,
theme, as well a s picture downloading s ervices , will be opened not only to K ings oft us ers but a ls o to mobile phone us ers ,
noted an official from the Hong K ong-lis ted compa ny. S o far, K ings oft ha s joined hands with nea rly 100 mobile phone
s oftware companies , collecting approximately 1, 000 kinds of mobile phone s oftware and more tha n 10, 000 mobile phone
games and theme products . T he products ca n meet the dema nd of mobile phone us ers .
P ay88, Inc. (OTC B B : P AYI); S ohu.com P ay88, Inc. E nters Dis tribution Agreement with S ohu.com P ay88, Inc. announced that it ha s entered into a dis tribution agreement with S ohu. com Inc. T hrough its s ubs idiary, Q ianbao
Inc. (Nas daqG S :S OHU) T echnology, P ay88 will act a s a dis tributor of S O HU digita l products , with a pa rticular focus on mobile phone games . As a
res ult of this new rela tions hip, Q ianbao T echnology will now be a ble to offer mobile ga mes to the domes tic market in C hina .
Figure 7b. Key Developments – continued
Source. Capital IQ