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.
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.
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.
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.
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.
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.
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.
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.
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.
La Corda D'Oro: Brand New Breeze for Violinsayakahime
Disponível originalmente no site Anime Keys, estou fazendo upload para que a partitura não se perca!
Música de abertura do anime La Corda D'Oro, Brand New Breeze, interpretada por Kanon, e transcrita por InfinityEX.
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.
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.
La Corda D'Oro: Brand New Breeze for Violinsayakahime
Disponível originalmente no site Anime Keys, estou fazendo upload para que a partitura não se perca!
Música de abertura do anime La Corda D'Oro, Brand New Breeze, interpretada por Kanon, e transcrita por InfinityEX.
StrategicFit 2011 Norwegian Continental Shelf APA 2011 Licence Award PosterStrategicFit
In response to the Norwegian Government’s APA 2011 licence award announcement on January 17th 2012, StrategicFit has created an NCS APA 2011 Licence Award Poster.
It is a quick and easy reference into the licences awarded to provide insights and comparisons on the individual companies, geographic areas, NPD obligations and much more.
It’s hardly news that carriers traditional revenue streams are under threat, and the pressure to react and adapt is greater than ever. fring and the fring like, once a Foe or Frenemy are actually becoming true friends for the carriers.
With communication OTT high quality of service on 3G and LTE netwroks, with the boarder lines between carriers and enterprise getting blurry .... and with consumers seeking features and capabilities from their devices and provider beyond price. It is mandatory by carries to leap into the OTT space. It's a reality
Attached presentation i have done with several leading carriers in Europe
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.
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.
LATTER HALF OF 2009: FORGING FORWARD
DEAL VALUE ON PACE TO MEET NOVEMBER LEVEL
December starts at strong pace: Total transaction value in the Web 2.0 universe for the first week of December is $68.8 million. The number of financings stands at seven, averaging $9.8 million each. In comparison, total capital raised in November was $203.4 million, averaging $11.3 million (18 deals); October was $171.3 million, averaging $6.3 million (27 deals); and September was $232.8 million, averaging $9.0 million (26 deals).
Broad-based sector financing: Video, Gaming, Advertising, Collaboration, and Analytics experienced the most financing activity among our Web 2.0 sector categories in the past three months by number of transactions (six each). Social Networks remain strong with five deals in the past quarter. Infrastructure and Search round out the top three positions at four deals each over the past three months. The $400 million acquisition of Playfish skews the Virtual Worlds segment to the highest total.
Market pull-back abates – universe split between risers and decliners: Twenty-five companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1), while 22 companies showed negative 1-week returns.
New royalty agreement for webcasting & copyright firms: SoundExchange, a nonprofit royalty collecting organization associated with the Recording Industry Association of America (RIAA) agreed this past week to a new deal regarding royalty rates for webcasting. Under the new agreement, large commercial webcasters will pay up to 25% of their revenue to copyright holders – well below the 70% that could have been imposed under an earlier deal. While the deal was initially agreed to by three smaller Internet radio webcasters, Pandora Media, the third largest radio site (according to Alexa), also indicated it would sign on to the agreement.
Online Media companies lead financing: Two online media companies – Pandora (Internet Radio) and QuickPlay (Mobile Video) have secured the largest financing transactions thus far in July ($35 million and $12 million respectively). Total capital raised so far in July is $66.1 million through eight transactions, averaging $8.3 million per transaction. June closed with $180 million in financing on 36 transactions. The averages for the months of May (excluding the Facebook transaction) and June were $6.4 million and $4.7 million, respectively.
A weak price performance week: The companies in our universe had weak stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with 30 companies showing negative returns on the week. Gravity (NasdaqGM: GRVY) led the group with a 33% return, while GungHo (3765-OSE) had the worst return, dropping 26.4% in the week.
*Capital Market Activity: *The month of May closed with 20 financings
totalling $327.1 million led by the $200 million investment by Digital Sky
Technologies in Facebook. Excluding the Facebook transaction, May would have
been the lowest month in CY2009. The Facebook transaction aside, four
transactions (One Net Ent., Cyberplex, Peer39 and OpenX), were greater than
or equal to $10 million. The average value in May is $15.6 million (and $6.4
million excluding the Facebook transaction), greater than the average value
for April of $6.2 million on 21 financings. The March average was $6.5
million on 24 financings. If you are aware of any companies that have
recently raised money that are not on our list, please send me an email to
have them added to our database.
*Price Performance: *Most of the companies in our universe had positive
stock price performances over the past week (for stocks with prices greater
than $1) (Figure 12), with 29 companies showing positive returns on the
week. GameOn co. Ltd (3812-TSE) led the group with a 28.2% return, while
eolith Co. Ltd. (A041060-KOSE) had the worst return, dropping 13.7% in the
week.
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However, this ease of use means that the subject of security in Kubernetes is often left for later, or even neglected. This exposes companies to significant risks.
In this talk, I'll show you step-by-step how to secure your Kubernetes cluster for greater peace of mind and reliability.
Pushing the limits of ePRTC: 100ns holdover for 100 daysAdtran
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Do you want to learn how to model and simulate an electrical network from scratch in under an hour?
Then welcome to this PowSyBl workshop, hosted by Rte, the French Transmission System Operator (TSO)!
During the webinar, you will discover the PowSyBl ecosystem as well as handle and study an electrical network through an interactive Python notebook.
PowSyBl is an open source project hosted by LF Energy, which offers a comprehensive set of features for electrical grid modelling and simulation. Among other advanced features, PowSyBl provides:
- A fully editable and extendable library for grid component modelling;
- Visualization tools to display your network;
- Grid simulation tools, such as power flows, security analyses (with or without remedial actions) and sensitivity analyses;
The framework is mostly written in Java, with a Python binding so that Python developers can access PowSyBl functionalities as well.
What you will learn during the webinar:
- For beginners: discover PowSyBl's functionalities through a quick general presentation and the notebook, without needing any expert coding skills;
- For advanced developers: master the skills to efficiently apply PowSyBl functionalities to your real-world scenarios.
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The Metaverse is popularized in science fiction, and now it is becoming closer to being a part of our daily lives through the use of social media and shopping companies. How can businesses survive in a world where Artificial Intelligence is becoming the present as well as the future of technology, and how does the Metaverse fit into business strategy when futurist ideas are developing into reality at accelerated rates? How do we do this when our data isn't up to scratch? How can we move towards success with our data so we are set up for the Metaverse when it arrives?
How can you help your company evolve, adapt, and succeed using Artificial Intelligence and the Metaverse to stay ahead of the competition? What are the potential issues, complications, and benefits that these technologies could bring to us and our organizations? In this session, Jen Stirrup will explain how to start thinking about these technologies as an organisation.
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• How a better user experience drives measurable business benefits
• How to get started with SAP Fiori today
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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.
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Rapid and secure feature delivery is a goal across every application team and every branch of the DoD. The Navy’s DevSecOps platform, Party Barge, has achieved:
- Reduction in onboarding time from 5 weeks to 1 day
- Improved developer experience and productivity through actionable findings and reduction of false positives
- Maintenance of superior security standards and inherent policy enforcement with Authorization to Operate (ATO)
Development teams can ship efficiently and ensure applications are cyber ready for Navy Authorizing Officials (AOs). In this webinar, Sigma Defense and Anchore will give attendees a look behind the scenes and demo secure pipeline automation and security artifacts that speed up application ATO and time to production.
We will cover:
- How to remove silos in DevSecOps
- How to build efficient development pipeline roles and component templates
- How to deliver security artifacts that matter for ATO’s (SBOMs, vulnerability reports, and policy evidence)
- How to streamline operations with automated policy checks on container images
A tale of scale & speed: How the US Navy is enabling software delivery from l...
09 01 27 Web 2.0 Weekly
1. SOFTWARE & SERVICES 27 JANUARY 2009
DAVID SHORE, CFA, MBA 416.860.6784
WEB 2.O WEEKLY david.shore@researchcapital.com
Arun Thomas (Associate) 416.860.7666
BUSIEST FINANCING MONTH SINCE APRIL 2008
S UMM AR Y
W e have identified 80 public companies for our W eb 2.0 universe. These include a wide variety of companies,
including MMOG (Massive Multi-Player Online Gaming) companies, social networking software companies, media
sharing companies, and social lending companies. The average market cap for the group is ~$300 million, with
average trailing revenue of $100 million. The companies are also highly profitable, with an average EBITDA margin of
17.5%. On a valuation basis, the overall average is 3.8x trailing revenue and 8.4x trailing EBITDA. Seventeen of the
companies have more than 500 employees.
CA P IT AL M AR K ET A CT I V IT Y
After 18 financings in December totalling $122.1 million (average $6.8 million), the New Year has started strong, with
23 financings already totalling $158.1 million (average $6.9 million). This is the largest number of financings since
April 2008. The largest financing in the last three months was of HuffingtonPost for $25.0 million in November (Figure
2). Eight companies have raised more than $10 million each thus far in January – with Aster Data Systems the largest
at $12 million so far. Microblogging phenomenon Twitter is rumoured to be raising more than $20 million with a
valuation of $250 million.
Financing Transactions by Month
30
25
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5 5 5
4 4 4 4
3 3 3 3
1 1 1 1 1
0
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Feb-06
Mar-06
May-06
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Mar-07
May-07
Nov-07
Feb-08
Mar-08
May-08
Nov-08
Jul-05
Aug-05
Sep-05
Oct-05
Dec-05
Jan-06
Apr-06
Jun-06
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Aug-06
Sep-06
Oct-06
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Jul-07
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Jan-09
IN DU ST R Y N E W S
This section discusses corporate activity such as partnerships, new product launches, and financial results.
V AL U AT I O N
This section provides an overview of valuation metrics for the 80 public W eb 2.0 companies we have identified thus
far. W e calculate TEV/Revenue, TEV/EBITDA, and P/E multiples for the companies in our universe. We also compare
multiples by country and exchange.
This report has been created b y Anal ysts that are emplo yed b y Research Capital Corporation, a Canadian Investment Dealer.
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
80 public Web 2.0 companies identified: W e have identified 80 public companies for our W eb 2.0 universe. These
include a wide variety of companies, including MMOG (Massive Multi-Player Online Gaming) companies, social networking
software companies, media sharing companies, and social lending companies. See below for a summary of the full
universe (Figure 1). Note that we have not included the large technology and media companies such as Google, Yahoo,
Disney, and Sony in our universe as they would skew the results due to their immense size relative to the rest of the
group. The average market cap for the group is ~$300 million, with average trailing revenue of $100 million. The
companies are also highly profitable with an average EBITDA margin of 17.5%. On a valuation basis, the overall average
is 3.8x trailing revenue and 8.4x trailing EBITDA. Seventeen of the companies have more than 500 employees.
C omparable C ompany Analys is > Web 2.0
S ummary
US D L TM
Trading C urrent US D Market Total US D L TM Total TE V /L TM TEV /L TM
C ompany Name L TM as of Ticker E xc hange C urrency HQ P rice Cap ($m) R ev ($m) EB ITDA ($m) E B ITDA % R evenue EB ITDA Employees Website
Acce lerize N ew Media, Inc. 9/30 /2 00 8 AC LZ OTCB B U SD United S tates 0 .3 5 9. 4 3. 2 (4.7 ) NM 4. 3x - 20 www. acce lerizene wmedia. com
Actoz S oft C o. , Ltd. 9/30 /2 00 8 A0 52 790 K OSE KRW S outh K orea 10 ,6 00 .0 0 67 . 2 52 . 6 9 .6 18. 3% 0. 8x 4. 4x NA www. actoz.com
AQ Interactive, Inc. 9/30 /2 00 8 383 8 TSE J PY J apa n 29 ,8 00 .0 0 18 . 1 61 . 7 4 .9 8 .0 % - - NA www. aqi.co.jp
As s ociated Me dia Holdings Inc. 6/30 /2 00 7 A S MH OTCP K U SD United S tates 0 .0 1 0. 2 0. 1 (2.3 ) NM 10 .2 x - 3 www. ma cgregor ene rgy. com
B oomJ I nc 9/30 /2 00 8 B O MJ OTCB B U SD United S tates 0 .7 5 30 . 7 1. 1 (7.7 ) NM 31 .1 x - 25 www. boomj. com
B r ight T hi ngs plc 9/30 /2 00 8 A IM: B GT AIM GBP United K ingdom 0 .0 1 2. 3 0. 2 (1.6 ) NM 9. 8x - 9 www. brightthings . com
B r oadW ebA s ia Inc. 9/30 /2 00 8 B W BA OTCP K U SD United S tates 1 .0 1 85 . 7 0. 0 (4.6 ) NM - - 46 www. broadweba s ia. com
C DC C orp. 9/30 /2 00 8 C HIN.A Na s daqGS U SD H ong Kong 0 .8 6 92 . 8 428 .1 18. 8 4 .4 % 0. 3x 7. 9x 3 , 125 www. cdccorpora tion.net
C hina G ateway C orpora tion 9/30 /2 00 8 CG WY OTCB B U SD United S tates 0 .0 0 0. 0 6. 7 (6.6 ) -98 . 9% 0. 0x - 37 -
C hines e G amer International 9/30 /2 00 8 G T S M: 30 83 GTSM T WD T a iwan 90 .3 0 2 27.9 38 . 2 18. 0 47. 1% 4. 5x 9. 5x NA www. chines e gamer. net
C ornerW orld C orporation 10 /31/2008 CWRL OTCB B U SD United S tates 0 .4 1 19 . 3 0. 6 3 .1 50 6. 8% 33 .7 x 6. 7x NA www. cornerworld. com
DAD A S pA 9/30 /2 00 8 C M:DA CM E UR Ita ly 6 .4 3 1 37.1 222 .9 35. 6 16. 0% 0. 8x 5. 1x 574 da da .dada . net
Digi ta lF X Inte rnational, Inc. 9/30 /2 00 8 DXN A ME X U SD United S tates 0 .1 0 2. 6 16 . 9 (4.5 ) -26 . 4% 0. 3x - 68 www. digitalfx.com
Digi ta lP os t Inter active, Inc. 9/30 /2 00 8 DG LP OTCB B U SD United S tates 0 .0 2 1. 4 0. 4 (3.3 ) NM 5. 9x - 11 www. digitalpos tinte ractive. com
Digi ta lT own, Inc. 11 /30/2008 DG T W OTCB B U SD United S tates 2 .3 0 62 . 5 NM (2.5 ) NM - - 3 www.e ne tpc.com
Dolphin Digita l Me dia , Inc. NA DP DM OTCB B U SD United S tates 0 .7 0 34 . 1 NA NM NM - - 6 www.dolphindigitalmedia. com
E olith C o. Ltd. 12 /31/2007 A0 41 060 K OSE KRW S outh K orea 5 15 .0 0 17 . 3 17 . 9 (0.0 ) - 0. 3% 1. 0x - NA www. eolith. co. kr
E xtensi ons, Inc. 9/30 /2 00 8 E XT I OTCP K U SD United S tates 0 .1 5 14 . 2 NM NM NM - - 2 www. ext. com
F ina ncia l Me dia Group, Inc. 11 /30/2008 F NGP OTCB B U SD United S tates 0 .0 2 1. 0 6. 8 1 .2 18. 3% 0. 0x 0. 1x 22 www.wa lls t.net
F luid Mus ic C anada , Inc. 9/30 /2 00 8 T S X: F MN TSX C AD United S tates 0 .3 1 13 . 3 4. 2 (8.6 ) NM - - 29 www.fluidmedia networks . com
F rogs ter Inte ractive P icture s A G 6/30 /2 00 8 FR G XT R A E UR G ermany 4 .9 5 15 . 3 5. 3 (3.2 ) -60 . 6% 2. 8x - NA www. frogste r-ip.de/en/inde x.php
Ga mania Digital E nterta inme nt C o. , L td. 9/30 /2 00 8 618 0 GTSM T WD T a iwan 21 .5 5 97 . 2 110 .4 18. 7 16. 9% 0. 6x 3. 8x NA www. ga mania. co. kr
Ga meO n C o L td. 9/30 /2 00 8 381 2 TSE J PY J apa n 123 ,0 00 .0 0 1 37.0 83 . 4 21. 1 25. 4% 0. 9x 3. 4x NA www.gameon.co. jp
Ge oS entric O yj 9/30 /2 00 8 G E O1 V HL S E E UR F inland 0 .0 3 35 . 3 5. 4 ( 12. 4) NM 5. 6x - 92 www.benefon.com
Giant Inte ractive G roup, Inc. 9/30 /2 00 8 GA NY S E U SD C hina 5 .9 6 1 ,4 16 .7 245 .1 15 5. 6 63. 5% - - 1 , 016 www. ga-me. com
GigaMe dia L td. 9/30 /2 00 8 GIGM Na s daqGS U SD T a iwan 6 .6 0 3 56.6 200 .5 48. 0 23. 9% 1. 4x 6. 1x 975 www.giga media. com.tw
GoF is h C or por ation 9/30 /2 00 8 G OF H OTCB B U SD United S tates 0 .1 8 4. 6 6. 3 ( 11. 0) NM 2. 4x - 41 www. gofis h. com
Gr avity C o., Ltd 9/30 /2 00 8 GRVY Nas da qG M U SD S outh K orea 0 .6 4 17 . 8 35 . 2 6 .8 19. 2% - - 636 www.gra vity. co. kr
Gr ee, Inc. NA T S E : 363 2 TSE J PY J apa n 5 ,4 70 .0 0 0. 0 NA NM NM - - NA www.gree. co. jp
GungHo Online E ntertainment, Inc. 9/30 /2 00 8 376 5 OS E J PY J apa n 104 ,5 00 .0 0 1 33.7 114 .3 16. 8 14. 7% 0. 9x 6. 3x NA www. gungho. co. jp/e nglis h/
HanbitS oft, Inc. 9/30 /2 00 8 A0 47 080 K OSE KRW S outh K orea 3 ,0 75 .0 0 48 . 4 49 . 9 ( 12. 8) -25 . 6% 0. 6x - NA www. hanbits oft. co. kr
IA S E ne rgy, Inc. 10 /31/2008 IAS C . A OTCB B U SD C anada 0 .0 2 1. 5 0. 0 (0.9 ) NM - - NA www. ia s ene rgy. com
IdeaE dge, Inc. 9/30 /2 00 8 OT C B B :IDA E OTCB B U SD United S tates 0 .6 5 27 . 5 0. 0 (3.5 ) NM - - NA www. idea edge. com
J umbuck E ntertainment P ty Ltd. 6/30 /2 00 8 AS X: J MB AS X A UD Aus tr alia 0 .3 9 12 . 7 10 . 4 4 .8 46. 0% 0. 8x 1. 7x 72 www. jumbuck. com
J umpT V I nc. 6/30 /2 00 8 T S X :J T V TSX C AD C anada 0 .3 0 27 . 9 11 . 5 (1.8 ) -15 . 3% 2. 9x - NA www. jumptv.com
K a boos e Inc. 9/30 /2 00 8 T S X :K AB TSX C AD C anada 0 .3 8 43 . 6 60 . 8 4 .6 7 .6 % 0. 8x 11 . 0x NA www. kaboos e .com
K ings oft C o. Ltd. 9/30 /2 00 8 388 8 S E HK H KD C hina 2 .6 6 3 68.1 106 .7 36. 0 33. 8% 2. 6x 7. 8x 1 , 660 www. kings oft. com
Lingo Me dia C orpora tion 9/30 /2 00 8 T S X V: LM T S XV C AD C anada 0 .9 8 10 . 3 3. 3 (1.4 ) -42 . 5% 3. 3x - NA www.l ingome dia .com
Live World Inc. 9/30 /2 00 8 LV W D OTCP K U SD United S tates 0 .0 3 0. 9 11 . 7 (1.2 ) -10 . 1% - - 73 www. live world. com
LookS mar t, Ltd. 9/30 /2 00 8 LO OK Nas da qG M U SD United S tates 1 .3 2 22 . 5 69 . 5 (2.6 ) - 3. 7% - - 93 www. looks mar t. com
Magnitude Informa tion S ys tems Inc. 9/30 /2 00 8 MA GY OTCB B U SD United S tates 0 .0 2 8. 8 0. 1 (3.2 ) NM - - 13 www. ma gnitude. com
Mixi, Inc. 9/30 /2 00 8 212 1 TSE J PY J apa n 485 ,0 00 .0 0 8 30.3 125 .9 49. 6 39. 4% 5. 7x 14 . 5x NA www.mixi. co. jp
Moggle , Inc 12 /31/2008 MMOG OTCB B U SD United S tates 2 .0 0 70 . 6 NM (1.1 ) NM - - 3 www. playmoggle . com
National L ampoon Inc. 7/31 /2 00 8 NLN A ME X U SD United S tates 0 .7 3 6. 9 7. 4 (1.6 ) -21 . 1% 1. 6x - 24 www. nationallampoon. com
NE O W IZ G ame s C orpora tion 12 /31/2007 A0 95 660 K OSE KRW S outh K orea 23 ,0 00 .0 0 1 58.7 129 .6 34. 8 26. 9% 1. 2x 4. 3x NA www. neowiz.com/kor/
NetDra gon We bS oft, Inc. 9/30 /2 00 8 7 77 S E HK H KD C hina 2 .6 5 1 80.6 95 . 2 46. 3 48. 6% 0. 0x 0. 0x 1 , 482 www. nd. com. cn
Netea s e. com Inc. 9/30 /2 00 8 NT E S Na s daqGS U SD C hina 17 .7 2 2 ,1 80 .5 422 .4 27 4. 2 64. 9% - - 2 , 413 corp. 16 3. com
NeXplore C or por ation 9/30 /2 00 7 NXP C OTCP K U SD United S tates 0 .5 5 30 . 7 NM (4.9 ) NM - - 19 www.nexplore .com
Ngi G roup Inc. 9/30 /2 00 8 249 7 TSE J PY J apa n 44 ,6 00 .0 0 61 . 6 102 .3 34. 2 33. 5% - - NA www. ne ta ge .co.j p/en/index. html
Northgate T echnologies L imited 9/30 /2 00 8 5 90057 B SE INR I ndia 42 .5 0 30 . 5 137 .3 24. 5 17. 8% 0. 2x 1. 2x 286 www.northgatetech. com
Open T ext C or p. 9/30 /2 00 8 OTEX Na s daqGS U SD C anada 32 .4 1 1 ,6 80 .9 744 .2 18 7. 9 25. 3% 2. 3x 9. 3x 3 , 000 www.ope ntext.com
Openwa ve S ys tems Inc. 9/30 /2 00 8 OPW V Na s daqGS U SD United S tates 0 .6 2 51 . 5 199 .0 ( 22. 8) -11 . 5% - - 618 www. openwa ve. com
P e rfect W orld C o., Ltd. 9/30 /2 00 8 P WR D Na s daqGS U SD C hina 15 .4 5 8 81.4 186 .8 99. 9 53. 5% - - 1 , 401 www. wanmei .com/en/inde x. htm
P hotoC hannel Ne tworks Inc. 9/30 /2 00 8 T S XV : PN T S XV C AD C anada 1 .7 4 47 . 7 14 . 0 (2.5 ) -17 . 7% 3. 4x - NA www. photocha nnel. com
Quepas a C orp. 9/30 /2 00 8 QP S A Nas daqC M U SD United S tates 1 .8 9 24 . 0 0. 1 ( 11. 8) NM - - 63 www.que pas a . com
S handa Intera ctive E ntertainment L td. 9/30 /2 00 8 S NDA Na s daqGS U SD C hina 27 .8 5 1 ,9 32 .3 477 .7 22 8. 2 47. 8% - - 2 , 564 www. snda .com
S hutterfly, Inc. 9/30 /2 00 8 S F LY Na s daqGS U SD United S tates 6 .0 2 1 50.9 203 .3 25. 7 12. 6% 0. 5x 4. 3x 512 www.s hutterfly.com
S K C ommunications C o. , Ltd. 12 /31/2007 A0 66 270 K OSE KRW S outh K orea 7 ,0 50 .0 0 2 08.4 149 .0 14. 0 9 .4 % 1. 4x 14 . 8x NA -
S NA P I nter active, Inc. 9/30 /2 00 8 S TV I OTCB B U SD United S tates 0 .9 9 10 . 6 2. 3 0 .2 10. 1% 4. 1x 40 . 7x 5 www. s nap-inte ractive .com
S NM G lobal Holdings 9/30 /2 00 8 S NMN OTCP K U SD United S tates 0 .0 0 0. 0 2. 0 (0.7 ) -34 . 8% 1. 1x - 33 www. s nmglobalholdings .com
S park Ne tworks , Inc. 9/30 /2 00 8 LO V A ME X U SD United S tates 2 .4 3 52 . 1 60 . 1 11. 7 19. 5% 0. 8x 4. 1x 176 www. spar k.net
S pectrum DNA, Inc. 9/30 /2 00 8 S P XA OTCB B U SD United S tates 0 .1 0 4. 9 0. 1 (2.7 ) NM - - 7 -
T encent Holdings Ltd. 9/30 /2 00 8 7 00 S E HK H KD C hina 44 .2 5 10, 25 1. 1 903 .3 44 7. 5 49. 5% 12 .2 x 24 . 7x 6 , 039 www. tencent. com. hk /inde x_ e. s html
T he P ar ent C ompany 8 /2/2008 K IDS .Q OTCP K U SD United S tates 0 .0 4 1. 0 112 .0 ( 13. 5) -12 . 0% 0. 2x - 347 www. thepare ntcompany. com
T he 9 Limited 9/30 /2 00 8 NC T Y Na s daqGS U SD C hina 15 .8 1 4 36.5 252 .4 95. 1 37. 7% - - 1 , 361 www. the9 .com
T he S tre et.com, Inc. 9/30 /2 00 8 T SCM Nas da qG M U SD United S tates 2 .9 0 88 . 4 75 . 2 12. 2 16. 2% 0. 1x 0. 9x 349 www. thes tre et. com
T ree . C om, Inc. 9/30 /2 00 8 TRE E Nas da qG M U SD United S tates 4 .3 1 40 . 4 231 .2 ( 39. 6) -17 . 1% 0. 1x - 1 , 000 www. le ndingtre e. com
Unis e rve C ommunications C or p. 8/31 /2 00 8 T S XV :US S T S XV C AD C anada 0 .0 8 1. 6 26 . 5 0 .7 2 .8 % 0. 5x 19 . 5x NA www. unis erve. com
Unite d Online Inc. 9/30 /2 00 8 UNT D Na s daqGS U SD United S tates 6 .0 9 4 99.2 538 .7 13 0. 6 24. 2% 1. 6x 6. 5x 928 www.unitedonline. net
UOMO Media, Inc 10 /31/2008 UO MO OTCB B U SD C anada 0 .0 8 6. 8 0. 5 (0.4 ) -91 . 6% 15 .1 x - NA www. uomolife .com
VO IS , I nc. 9/30 /2 00 8 VO IS OTCB B U SD United S tates 0 .7 5 5. 4 0. 0 (4.0 ) NM - - 4 www.vois . com
W ebzen Inc. 9/30 /2 00 8 W ZE N Nas da qG M U SD S outh K orea 1 .4 3 17 . 0 20 . 3 (6.0 ) -29 . 5% - - 338 www. webzen. co. kr
W izza rd S oftwa re C orporation 9/30 /2 00 8 W ZE A ME X U SD United S tates 0 .7 2 32 . 5 6. 2 (6.5 ) NM 5. 3x - 110 www.wizzar ds oftware .com
W oozyF ly, Inc. 9/30 /2 00 8 W ZY F OTCB B U SD United S tates 0 .1 5 2. 6 0. 0 NM NM - - 14 www. woozyfly. com
W orlds .com Inc. 9/30 /2 00 8 W DDD OTCB B U SD United S tates 0 .1 6 8. 4 0. 1 NM NM - - 1 www. wor lds . com
W ynds torm C orporation NA W YND OTCB B U SD United S tates 0 .5 1 9. 2 NA NM NM - - NA www. wynds torm.com
XING A G 9/30 /2 00 8 O 1B C XT R A E UR G ermany 29 .0 0 1 98.4 41 . 2 16. 0 38. 8% 3. 5x 8. 9x 161 www.xing. com
Y e dangO nli ne C orp. 12 /31/2007 A0 52 770 K OSE KRW S outh K orea 7 ,0 90 .0 0 79 . 7 49 . 3 11. 0 22. 4% 1. 6x 7. 2x NA www. yeda ngonli ne. com/i ndexhome. as p
Y nk K or ea I nc. 12 /31/2007 A0 23 770 K OSE KRW S outh K orea 3 ,9 50 .0 0 7. 0 14 . 0 (1.1 ) - 7. 6% 0. 5x - NA www. ynk. ne t
ZipL ocal I nc. 9/30 /2 00 8 T S X V: ZIP T S XV C AD C anada 0 .0 2 1. 3 2. 9 (3.9 ) NM 0. 7x - NA www. ziplocal. com
High 10, 25 1. 1 90 3. 3 4 47 .5 50 6. 8% 33 .7 x 40 . 7x 6 ,0 39
Low 0. 0 0.0 -39 .6 -98 . 9% 0. 0x 0. 0x 1
Average 298.8 100.3 26.0 17.5% 3.8x 8.4x 602
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 )
Financing activity continues: After 18 financings in December totalling $122.1 million (average $6.8 million), the New
Year has started strong, with 23 financings already totalling $158.1 million (average $6.9 million). This is the largest
number of financing since April 2008. The largest financing in the last three months was of HuffingtonPost for $25.0
million in November (Figure 2). Eight companies have raised more than $10 million each thus far in January – with Aster
Data Systems the largest at $12 million so far. Microblogging phenomenon Twitter is rumoured to be raising more than
$20 million with a valuation of $250 million. W e will add this to our database once details are confirmed. For additional
details, see Figure 27 (at end of note).
Financings - Last Three Months
30.0
25.0
20.0
Jan-09
(US$m)
15.0 Dec-08
Nov-08
10.0
5.0
0.0
NewsGator
IMVU
InsideView
Motionbox
Gbox
Multiply
Meez
Xobni
Overlay.TV
GoFish
Rockyou
PlaySpan
NetShelter
Go Internet Media
Nurien
Yodle
Taptu
FooMojo
Scribd
One True Media
Social Median
JibJab
Kewego
Superfish
Snapmylife
Tagged
Jackbe
Playdo
DotBlu
Hubdub
Casual Collective
Snooth
Identi.ca
HuffingtonPost
Angie's List
KickApps
Aster Data Systems
RatePoint
Play Hard Sports
ChakPak
Sportsblogs
AboutUs
E-Global Sports
StockTwits
Clickpass
Blue Kai
DECA
Geni
Machinima.com
Tumblr
Pulse Entertainment
Worlds.com Inc.
Figure 2. Financings, Last Three Months
Source. Company reports
January activity doesn’t offset weak 2H/08: However, on a trailing 12-month basis, financings are down for the third
month in the last four, with average round sizes decreasing slightly as of January (Figure 3).
4. Page 4
LTM Financing
4,000.0 20.0
18.0
3,500.0
16.0
3,000.0
14.0
2,500.0
12.0
(US$m)
(US$m)
2,000.0 10.0
8.0
1,500.0
6.0
1,000.0
4.0
500.0
2.0
0.0 0.0
May-06
May-07
May-08
Jul-05
Sep-05
Nov-05
Jan-06
Mar-06
Jul-06
Sep-06
Nov-06
Jan-07
Mar-07
Jul-07
Sep-07
Nov-07
Jan-08
Mar-08
Jul-08
Sep-08
Nov-08
Jan-09
Total Average
Figure 3. Financings, Last 12 Months
Source. Company reports
Cumulative total $5.2 billion: Overall, on a cumulative basis, W eb 2.0 financings have totalled almost $5.2 billion, with
the majority of the financing coming in late 2007 and the first three quarters of 2008 (Figure 4).
Web 2.0 Financing (cumulative)
1,400.0 6,000.0
1,303.0
1,200.0
5,000.0
1,000.0 941.2
4,000.0
800.0
(US$m)
(US$m)
701.7
3,000.0
600.0
524.9
2,000.0
400.0
311.8
296.0
1,000.0
158.1
200.0 145.7
124.1
101.3 97.0
87.2 69.4
37.5 33.5 18.2 40.0 49.1 29.4
35.5 28.8 20.1
0.0 0.0
Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1
2003 2004 2005 2006 2007 2008 2009
Figure 4. Financing, Cumulative
Source. Company reports
5. Page 5
U.S. remains dominant: U.S. companies continue to dominate capital market activity – with almost 73% of
financings/M&A involving U.S. companies (based on dollars) (Figure 5). Canadian companies generated under 1% of
capital market activity based on dollar volume (Figure 5). Based on number of transactions, the U.S. leads with
approximately 74% of deals, while Canada is third in number of financings at 5.2% (Figure 6).
Financing/M&A by Country - LTM ($) Financing/M&A by Country - LTM (#) Canada
5.2%
UK
UK
6.0%
13.4%
Israel
2.8%
China
China
2.4%
7.9%
Russia Canada
ROW
1.7% 0.7%
9.3%
Israel
0.7%
Denmark
0.7%
ROW
2.1%
USA
72.8%
USA
74.2%
Figures 5 & 6. Financing/M&A, by Country (LTM, $, #)
Source. Company reports
More early-stage funding (by count): Almost half of financings in the last 12 months are for early-stage companies
(Angel/Seed or Series A) (Figure 7). Series B rounds are 30.7% of the total, with later-stage (Series D, E and PIPE) deals
accounting for just 7.3%.
Financing by Type - LTM
Series B
30.7% Series C
12.1%
Series D
4.8%
Angel/Seed
9.1%
Debt financing
3.0%
PIPE
Series A 2.2%
38.1%
Figure 7. Financing, by Type (LTM, $)
Source. Company reports
But “D” series are largest equity rounds (by dollar): In the last 12 months, there have been eleven “D” series rounds,
averaging over $25 million per financing (Figure 8). Note that we have excluded the $430 million Series C financing of
Oak Pacific Interactive as it skews the results substantially.
6. Page 6
Average financing round size - LTM
40.0
35.0
30.0
25.0
(US$m)
20.0
38.1
15.0
26.2
10.0
18.9
11.3
5.0 10.0
8.8
6.4
3.4
0.0
Angel/Seed Debt financing PIPE Series A Series B Series C Series D Series E
# rounds
21 7 5 88 71 28 11 1
Figure 8. Average Size per Round
Source. Company reports
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 )
Price Performance: Our W eb 2.0 index (market-cap weighted) has closely tracked the performance of the NASDAQ
composite index, although it has outperformed the index since late October 2008 (Figure 9).
Web 2.0 Index Price Performance
140
120
100
80
60
40
20
0
1/28/2008
2/11/2008
2/25/2008
3/10/2008
3/24/2008
4/7/2008
4/21/2008
5/5/2008
5/19/2008
6/2/2008
6/16/2008
6/30/2008
7/14/2008
7/28/2008
8/11/2008
8/25/2008
9/8/2008
9/22/2008
10/6/2008
10/20/2008
11/3/2008
11/17/2008
12/1/2008
12/15/2008
12/29/2008
1/12/2009
1/26/2009
NASDAQ COMP Web 2.0 (Market Cap Weighted)
Figure 9. Web 2.0 Price Performance
Source. Capital IQ
7. Page 7
DigitalTown reverses fortune, BroadWeb Asia leads: After leading last week with a 1-week return of 11.1%,
DigitalTown (DGTW -OTCBB) had the worst performance in the group (for stocks with prices greater than $1) (Figure 10),
falling 23.3% on the week. BroadW eb Asia (BW BA-OTCPK) increased the most, +83.6%.
1 Week P ric e P erformanc e
B roadW ebAs ia Inc. 83.6%
W ebzen Inc. 41. 6%
33.3%
Moggle, Inc
S K C ommunica tions C o., Ltd. 21.6%
NE O W IZ G ames C orpora tion 20.4%
Y edangOnline C orp. 9.1%
P hotoC ha nnel Networks Inc. 7.4%
G iant Interactive G roup, Inc. 6. 2%
G ameOn C o Ltd. 5.9%
T he9 Limited 5.8%
F rogs ter Interactive P ictures AG 4. 2%
Open T ext C orp. 3. 6%
3. 4%
Actoz S oft C o., Ltd.
T encent Holdings Ltd. 3.3%
G ungHo Online E ntertainment, Inc. 2.9%
AQ Interactive, Inc. 2.8%
LookS ma rt, Ltd. 2.3%
1. 0%
Neteas e.com Inc.
C hines e G a mer Internationa l -0.3%
P erfect W orld C o., Ltd. -1. 4%
K ings oft C o. Ltd. -1.5%
United O nline Inc. -1.6%
-2.1%
Quepas a C orp.
S handa Interactive E ntertainment Ltd. -2.5%
HanbitS oft, Inc. -2.7%
S park Networks , Inc. -2.8%
G amania Digital E nterta inment C o., Ltd. -2.9%
G iga Media Ltd. -3. 2%
T heS treet.com, Inc. -4. 0%
G ree, Inc. -4.0%
E olith C o. Ltd. -4.6%
XING AG -4.7%
DADA S pA -5.3%
Northga te T echnologies Limited -6. 3%
T ree. C om, Inc. -6.3%
-6.4%
NetDragon W ebS oft, Inc.
Y nk K orea Inc. -8.1%
Ngi G roup Inc. -14.4%
Mixi, Inc. -14. 9%
S hutterfly, Inc. -15. 2%
-23. 3%
DigitalT own, Inc.
-40.0% -20.0% 0.0% 20.0% 40. 0% 60. 0% 80. 0% 100. 0%
Figure 10. 1-Week Price Performance
Source. Capital IQ
INDUSTRY NEWS (PARTNERSHIPS, FINANCIAL RESULTS, NEW PRODUCTS)
Tencent Holdings Ltd. Launches English Version of QQ: Tencent Holdings Ltd. launched the English-language version
of its popular instant messaging (IM) tool QQ. It is the right time to launch the new program considering the increasing
demand for communication between Chinese Internet users and their overseas counterparts. The company has recently
developed an international version of the IM program. The English language users can register and download software
through the new service.
Perfect World Co. Ltd. Partners with KTHitel Co. Ltd. to License 'Chi Bi' in Korea: Perfect W orld Co. Ltd. announced
that it recently signed an agreement with KTHitel Co. Ltd. to license 'Chi Bi,' the Company's 3D massively multiplayer
online role playing game (MMORPG) based on the Three Kingdoms period in Chinese history, to the Korean market. 'Chi
Bi' was launched domestically in January 2008 and is Perfect W orld's first historical theme-based 3D MMORPG. The
game's unique features, such as the '18 Legendary W eapons System,' the 'Battle of the Three Kingdoms System,' and
cutting edge graphic design, have proven to be quite popular with players. 'Chi Bi' has previously been licensed in a
number of countries and regions including Taiwan, Malaysia and Japan.
Spark Files Shelf: Spark Networks, Inc. has filed a Shelf Registration in the amount of $2.67 million.
DADA Acquired: RCS MediaGroup SpA (CM: RCS) acquired remaining 50.5% stake in DADA SpA (CM: DA) on January
21, 2009. The transaction was approved by Italy’s antitrust authorities. RCS MediaGroup S.p.A (CM: RCS) completed the
acquisition of remaining 50.5% stake in DADA SpA (CM: DA) on January 21, 2009.
The9 Limited Declares Special Cash Dividend Payable On or Around February 9, 2009: The9 Limited announced that
its Board of Directors has declared a special cash dividend in an aggregate amount of $29,410,000, or approximately of
$1.11 per share on its ordinary shares, par value $0.01 per share, based on the number of shares outstanding on the date
hereof. The actual dividend per share will be based on the number of shares outstanding on the record date. The special
cash dividend, net of taxes withheld pursuant to applicable law, is payable on or around February 9, 2009 to shareholders
of record as of the close of business on February 2, 2009, U.S. Eastern Standard Time.
GoFish Corporation to Amend and Restate Articles of Incorporation: GoFish Corporation announced that on January
20, 2009, pursuant to the approval of the Board and the written consent of at least a majority of the outstanding shares of
the company's capital stock, the company filed a Certificate of Amendment to the company's Amended and Restated
Articles of Incorporation with the Secretary of State of Nevada to change the name of the company from 'GoFish
Corporation' to 'Betawave Corporation'. The Certificate of Amendment became effective upon filing. The company intends
on notifying FINRA of the name change and expects to receive a new ticker symbol for the company's common stock,
8. Page 8
which is currently quoted on FINRA's OTC Bulletin Board. In addition, the company intends on contacting the CUSIP
Service Bureau and expects to receive a new CUSIP number for the company's common stock.
Playbo y Mexico and Quepasa Corp. Announce Strategic Partnership: Quepasa Corp. and Playboy Mexico announced
a strategic partnership to launch a model search to find the next Playboy Mexico Playmate of the Year for 2009. The
model search will be largely judged by Quepasa members who will vote for which models advance to the finalist's pool. As
part of the partnership Quepasa, one of the fastest growing online social communities for young Latinos, will develop a
fully interactive online community for Playboy Mexico in which Quepasa members can enter to become a Playboy
Playmate or vote for which models make it to the finals. The community, which will launch in February, will feature a
vibrant, interactive viral community, including model profiles, pictures, and user-generated content.
Open Text Corp. Announces the Release of Open Text Recruiting Management for Microsoft SharePoint: Open Text
Corp. announced the release of Open Text Recruiting Management for Microsoft SharePoint, a native Microsoft Office
SharePoint Server 2007 application for collaborative hiring case management that helps to simplify the recruiting process
within organizations. This release is part of a continuing Open Text strategy to build applications that extend Office
SharePoint Server 2007, based on the Open Text ECM Suite. Features for Open Text Recruiting Management for
Microsoft SharePoint include: Integration with Oracle's PeopleSoft Enterprise: Open Text Recruiting Management for
Microsoft SharePoint automatically imports relevant HR data from PeopleSoft; Full Auditing Capabilities and Records
Retention: Built upon the compliance strengths of long term retention and archival of Open Text Enterprise Library
Services, the application shares central records management practices and maintains compliance with corporate and
legislative regulations; Automated W orkflow and Approval: Open Text Recruiting Management for Microsoft SharePoint
leverages request forms, automated tasks and notifications to simplify the hiring process; and Dedicated Collaborative
W ork Area: Information related to the job is available within the Office SharePoint Server 2007 site. Users work with
everyone involved in the hiring process and take advantage of the collaborative features of Office SharePoint Server
2007.
Shanda Signs Agreement w ith Zhejiang Satellite Television: Shanda Interactive Entertainment Ltd. announced that it
would launch an interactive music program through collaboration with Zhejiang Satellite Television. The program is wholly
based on its year-consuming music community game and interactive music platform, 'Juxing', which integrates such
functions as singing, making friends and competition. The move marks the first trial promotion of online game via
Televisions in China and indicates the formal operation of 'Juxing' under way, noted market watchers.
Snap Interactive Inc. Provides Revenue Guidance for the Fourth Quarter and Year Ending December 31, 2008:
SNAP Interactive Inc. provides revenue guidance for the fourth quarter and year ending December 31, 2008. The company
anticipates revenue in excess of $1.08 million for the quarter ended December 31, 2008. The company anticipates total
revenue in excess of $3.0 million for the year ended December 31, 2008.
The9 to Launch ‘Wrath of the Lich King’ in China: The9 Limited is set to launch W rath of the Lich King, the second
expansion set for the massively multiplayer online role-playing game (MMORPG) W orld of W arcraft, in China soon, but
they have not determined the date. The expansion set has made a hit in some western countries such as the U.S. Sales of
W rath of the Lich King gained the top spot during the Christmas.
Financial Media Seeks Financing: Financial Media Group, Inc. plans to raise funds. The firm said in a SEC filing that it
anticipates that the firm will need an additional $2,000,000 to fund its anticipated operations for the next 12 months,
depending on revenues from operations. The firm added that it presently does not have any available credit, bank
financing or other external sources of liquidity. It also said that it will need to obtain additional capital in order to expand
operations and become profitable. In order to obtain capital, the firm may need to sell additional shares of its common
stock or borrow funds from private lenders.
NetDragon WebSoft Inc. Launches New Expansion Pack for Eudemons Online, Divine Path: NetDragon W ebSoft Inc.
has launched a new expansion pack--'Divine Path'--for its major online game Eudemons Online on 16 January 2009.
'Divine Path' is the fifth expansion pack of the game following the previous expansion pack 'The W ings of the Ruler', which
launched in April 2008. 'Divine Path' combines mythical elements of Greece and launches a brand-new map 'Land of the
God', which brings players a new era of 'god incarnation'. The latest expansion pack with enriched game features such as
new challenges, maps, skills and equipment will enable NetDragon to continue to offer a fantastic entertainment
experience for the Company's players.
GoFish Name Change: GoFish Corporation has changed its name to Betawave Corporation.
Perfect World to Launch Closed Beta Testing for 'Pocketpet Journey West' in North America: Perfect W orld Co. Ltd.
announced that it will begin closed beta testing for 'Pocketpet Journey West,' a 3D MMORPG, in North America on
February 10, 2009. The game will be released as 'Ether Saga Online' through its wholly owned U.S. subsidiary, Perfect
W orld Entertainment Inc. Based on the Chinese literary classic, Journey to the W est, 'Ether Saga Online' features youthful
anime graphics, as well as exciting in-game systems, and has been localized to cater to North American game players.
Since the game's launch in China in October 2008, it has been well-received by domestic online game players.
9. Page 9
VALUATION
Five companies top US$1 billion market cap: Just five (same as last week) companies in our Web 2.0 universe top
US$1 billion in market capitalization (Figure 11). In addition, 60 of the 80 (up from 55 last week) companies have market
caps under US$100 million, with 24 (21 last week) under $10 million. Online gaming companies dominate the top of the
list with five of the top six by market cap.
Market C ap (US D m)
T encent H oldings Ltd.
Netea s e. com Inc. 2180.5
S handa Interactive E nterta inment 1932. 3
O pen T ext C orp. 1680. 9
G iant Interactive G roup, Inc. 1416.7
P erfect W orld C o., Ltd. 881. 4
Mixi, Inc. 830.3
U nited O nline Inc. 499. 2
T he9 Limited 436. 5
K ings oft C o. Ltd. 368.1
G igaMedia Ltd. 356. 6
C hines e G amer Internationa l 227. 9
S K C ommunications C o., Ltd. 208. 4
X ING AG 198. 4
N etDra gon W ebS oft, Inc. 180. 6
N E O W IZ G ames C orporation 158.7
S hutterfly, Inc. 150.9
DA DA S pA 137.1
G a meO n C o Ltd. 137.0
G ungH o O nline E ntertainment, Inc. 133.7
G amania Digital E nterta inment 97. 2
C DC C orp. 92.8
T heS treet.com, Inc. 88. 4
B roa dW ebA s ia Inc. 85.7
Y eda ngO nline C orp. 79.7
Moggle, Inc 70. 6
A ctoz S oft C o., Ltd. 67. 2
DigitalT own, Inc. 62. 5
Ngi G roup Inc. 61. 6
S park Networks , Inc. 52.1
O penwave S ys tems Inc. 51. 5
Ha nbitS oft, Inc. 48.4
P hotoC hannel Networks Inc. 47. 7
K a boos e Inc. 43.6
T ree. C om, Inc. 40.4
G eoS entric O yj 35.3
Dolphin Digital Media , Inc. 34.1
W izzard S oftwa re C orporation 32. 5
B oomJ Inc 30.7
N eXplore C orporation 30.7
Northgate T echnologies Limited 30.5
J umpT V Inc. 27. 9
IdeaE dge, Inc. 27. 5
Q uepas a C orp. 24.0
LookS mart, Ltd. 22. 5
C ornerW orld C orporation 19.3
AQ Interactive, Inc. 18.1
G ravity C o. , Ltd 17. 8
E olith C o. Ltd. 17. 3
W ebzen Inc. 17.0
F rogs ter Interactive P ictures AG 15. 3
E xtens ions , Inc. 14. 2
F luid Mus ic C a nada , Inc. 13.3
J umbuck E ntertainment P ty Ltd. 12.7
S NA P Interactive, Inc. 10. 6
Lingo Media C orporation 10. 3
Accelerize New Media , Inc. 9.4
W ynds torm C orporation 9.2
Ma gnitude Informa tion S ys tems 8. 8
W orlds . com Inc. 8.4
Y nk K orea Inc. 7.0
Nationa l La mpoon Inc. 6.9
UO MO Media, Inc 6.8
V O IS , Inc. 5. 4
S pectrumDNA , Inc. 4.9
G oF is h C orporation 4.6
W oozyF ly, Inc. 2.6
DigitalF X Interna tional, Inc. 2.6
B right T hings plc 2. 3
Unis erve C ommunications C orp. 1.6
IAS E nergy, Inc. 1.5
Digita lP os t Interactive, Inc. 1.4
ZipLoca l Inc. 1.3
F inancial Media G roup, Inc. 1.0
T he P arent C ompany 1.0
LiveW orld Inc. 0.9
A s s ociated Media Holdings Inc. 0.2
C hina G ateway C orporation 0.0
S N M G lobal Holdings 0.0
G ree, Inc. 0.0
0 500 1, 000 1,500 2,000 2,500 3,000
Figure 11. Market Cap Ranking
Source. Capital IQ
TEV/Revenue (LTM) averages 3.8x: The overall average TEV/Revenue (LTM) multiple for our group is 3.8x (Figure 12).
However, this is skewed by CornerW orld (CW RL-OTCBB) at 33.7x and BoomJ at 31.1x (BOMJ-OTCBB). Excluding those
companies, the average is 2.6x. Note that we exclude multiples greater than 50x. Twenty-seven of the companies have
multiples under 1.5x.