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.

1. Web 2.0 Weekly
“Big Acquisitions, Little Financing”
July 8, 2010
David Shore, CFA, MBA 416.860.6784
dshore@mackieresearch.com
Damian Wojcichowsky, CFA 416.860.7652
This report has been created by Analysts that are employed by Mackie Research Capital Corporation, a Canadian Investment Dealer.
For further disclosures, please see last page of this report.
www.mackieresearch.com
Copyright © 2000-2010, Mackie Research Capital Corporation, All rights reserved www.mackieresearch.com

2. Key Developments (past week)
Deals (M&A, Finance) – Big Acquisitions, Little Financing
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.
Financial Results/Guidance/Partnerships/Product
Points International Ltd. (TSX:PTS) announced that it has formed a partnership with
The Mileage Company. The new partnership means that Airmiles UK members can now
purchase miles for themselves or gift Airmiles to other members.
RealNetworks Inc. (NasdaqGS:RNWK) is once again scaling back its operations and
announced a restructuring of its operations which includes layoffs of 85 employees. The
layoffs include a 25% reduction in its executive ranks and the reorganization seeks to
streamline its technology and media services divisions. The company is now down to
1,365 employees from 1,700, with roughly 65 layoffs coming out of the Seattle office.
2 www.mackieresearch.com

3. Public Company Data
3 www.mackieresearch.com

4. Aggregate Public Data
Web 2.0 Public Companies Total Median Max Min
# Companies 103 - - -
Market Cap (US$ mm) 74,460.8 67.2 30,629.6 1.2
Revenue (US$ mm) 23,139.7 56.0 3,057.7 0.0
1 Year revenue growth 2.5% 8961.6% -100.0%
EBITDA as % of revenue - 11.3% 63.1% -99.5%
Net cash (US$ mm) 9,273.3 3.3 1,841.1 -670.8
TEV/Revenue - 1.9x 47.4x 0.1x
TEV/EBITDA - 8.5x 45.6x 0.5x
P/E - 15.3x 90.4x 0.0x
Relative to 52 week high -42.9% -4.1% -95.6%
Source: CapitalIQ
4 www.mackieresearch.com

5. 5
0
5
10
15
20
25
30
Gaming
28
Social Networking
18
Media
10
9
Diversified
5
Mobile
5
Marketing
Source: CapitalIQ
3
Infrastructure
3
SMS/Voice
3
Enterprise
3
Advertising
2
Internet Retail
2
Virtual World
By Sector
2
Dating
2
Music
1
Vertical Communities
1
Search
1
Podcasting
1
Learning
1
Video
1
Collaboration
1
Payment
1
Financial Services
Public Company Distribution
0
5
10
15
20
25
30
35
40
45
50
United States
Canada
China
South Korea
Japan
Taiwan
Hong Kong
Germany
Poland
Australia
United Kingdom
By Country
Italy
Finland
Sweden
India
Russia
Malaysia
Switzerland
www.mackieresearch.com

6. Valuation Dashboard – 1 Week
Market Cap EV/Revenue
Flat
12% Flat
1%
Rising Falling
27% 64%
Rising
35%
Falling
61%
EV/EBITDA P/E
Flat Flat
0% 0%
Rising
35%
Rising
44%
Falling
56%
Falling
65%
6 www.mackieresearch.com

7. 7
Source: CapitalIQ
Multiple (x)
0.0x
0.5x
1.0x
1.5x
2.0x
2.5x
3.0x
3.5x
4.0x
4.5x
5.0x
# companies
5/11/2009
5/18/2009
5/25/2009
6/1/2009
6/8/2009
6/15/2009
6/22/2009
6/29/2009
7/6/2009
7/13/2009
7/20/2009
7/27/2009
8/3/2009
8/10/2009
8/17/2009
8/24/2009
Median EV/Revenue
8/31/2009
9/7/2009
9/14/2009
9/21/2009
9/28/2009
10/5/2009
10/12/2009
10/19/2009
10/26/2009
11/2/2009
11/9/2009
Median
11/16/2009
11/23/2009
11/30/2009
12/7/2009
12/14/2009
12/21/2009
12/28/2009
1/4/2010
1/11/2010
1/18/2010
Long-term average
1/25/2010
2/1/2010
2/8/2010
2/15/2010
2/22/2010
3/1/2010
3/8/2010
3/15/2010
3/22/2010
average
3/29/2010
4/5/2010
well below LT
4/12/2010
4/19/2010
down slightly, still
Revenue multiples
4/26/2010
5/3/2010
5/10/2010
5/17/2010
5/24/2010
5/31/2010
6/7/2010
6/14/2010
6/21/2010
6/28/2010
373839404040404042444545464646474850515150545556616161626666666565667070707073727167707271767477767979797978807981838283
www.mackieresearch.com

8. 8
Source: CapitalIQ
Multiple (x )
# companies
0. 0x
5. 0x
10. 0x
15. 0x
20. 0x
25. 0x
30. 0x
5/18/2009
5/25/2009
6/1/2009
6/8/2009
6/15/2009
6/22/2009
6/29/2009
7/6/2009
7/13/2009
7/20/2009
7/27/2009
8/3/2009
8/10/2009
8/17/2009
Median EV/EBITDA
8/24/2009
8/31/2009
9/7/2009
9/14/2009
9/21/2009
9/28/2009
10/5/2009
10/12/2009
10/19/2009
10/26/2009
11/2/2009
11/9/2009
11/16/2009
Median
11/23/2009
11/30/2009
12/7/2009
12/14/2009
12/21/2009
12/28/2009
1/4/2010
1/11/2010
1/18/2010
1/25/2010
2/1/2010
Long-term average
2/8/2010
2/15/2010
2/22/2010
3/1/2010
3/8/2010
3/15/2010
3/22/2010
3/29/2010
4/5/2010
4/12/2010
4/19/2010
4/26/2010
5/3/2010
5/10/2010
EV/EBITDA multiples down,
depressed below LT average
5/17/2010
5/24/2010
5/31/2010
6/7/2010
6/14/2010
6/21/2010
6/28/2010
7/5/2010
18 20 21 22 22 21 21 21 23 22 25 22 23 23 25 26 26 25 24 24 25 27 28 29 32 34 34 36 39 37 38 39 38 40 41 38 38 38 42 41 40 42 41 41 42 43 44 44 44 47 49 48 50 51 51 49 50 48 47 49
www.mackieresearch.com

9. 9
Source: CapitalIQ
Multiple (x )
# companies
0. 0x
5. 0x
10. 0x
15. 0x
20. 0x
25. 0x
30. 0x
35. 0x
5/18/2009
5/25/2009
6/1/2009
Median P/E
6/8/2009
6/15/2009
6/22/2009
6/29/2009
7/6/2009
7/13/2009
7/20/2009
7/27/2009
8/3/2009
8/10/2009
8/17/2009
8/24/2009
8/31/2009
9/7/2009
9/14/2009
9/21/2009
9/28/2009
10/5/2009
10/12/2009
10/19/2009
10/26/2009
11/2/2009
11/9/2009
11/16/2009
Median
11/23/2009
11/30/2009
12/7/2009
12/14/2009
12/21/2009
12/28/2009
1/4/2010
1/11/2010
1/18/2010
1/25/2010
2/1/2010
Long-term average
2/8/2010
2/15/2010
2/22/2010
3/1/2010
3/8/2010
3/15/2010
3/22/2010
3/29/2010
4/5/2010
4/12/2010
4/19/2010
and below LT average
4/26/2010
P/E multiples also down
5/3/2010
5/10/2010
5/17/2010
5/24/2010
5/31/2010
6/7/2010
6/14/2010
6/21/2010
6/28/2010
7/5/2010
19 19 18 18 19 18 19 18 20 20 20 18 19 19 19 20 21 24 23 23 24 25 27 26 30 31 32 31 33 32 34 36 37 39 39 38 39 39 40 41 38 39 39 40 37 37 35 33 33 32 35 35 36 35 35 37 35 32 34 33
www.mackieresearch.com

10. 10
-
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
# Companies 2
Infrastructure
13.4
1
Virtual World
11.9
7
Diversified
9.9
1
Learning
9.4
8
Social Networking
5.3
4
Mobile
5.0
2
Music
4.4
4
Marketing 4.3
1
Vertical Communities
3.7
1
Search
3.6
Gaming
21
3.3
3
SMS/Voice
3.2
Average EV/Revenue – by Sector
1
Podcasting
2.8
1
Collaboration
2.4
3
Advertising
2.2
9
Media
2.2
2
Internet Retail
1.9
3
Enterprise
1.6
1
Video
1.5
2
Dating
1.3
1
Financial Services
0.3
www.mackieresearch.com

11. Average EV/EBITDA – by Sector
50.0
45.6
45.0
40.0 38.5
35.0
30.0
25.0
20.0 17.7
15.8
15.0
11.5 11.3 11.2 10.9
10.0 8.9 8.7
6.8
5.0
-
Diversified
Financial Services
Internet Retail
Search
Mobile
Enterprise
Gaming
Social Networking
Media
Collaboration
Marketing
# Companies 1 1 3 2 14 5 6 2 6 1 2
11 www.mackieresearch.com

12. Average P/E – by Sector
100.0
90.0 87.8
80.0
70.0
60.0
53.6
50.0
40.0 37.9
33.8
30.0 26.2
18.9
20.0
15.3
12.9 12.5
10.0
-
Internet Retail Enterprise Collaboration Diversified Social Marketing Advertising Gaming Media
Networking
2 3 1 9 18 5 3 28 10
# Companies
12 www.mackieresearch.com

13. 13
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
NeXplore C orporation
47
Source: CapitalIQ
26
S pectrumDNA, Inc.
25
S oc ialG O P L C
16
T enc ent Holdings Ltd.
15
G eoS entric O yj
13
P aid Inc.
12
Worlds . com Inc.
G ree, Inc.
B ey ond C ommerc e, Inc.
11 11 10
MO K O .mobi Limited
Lingo Media C orporation
9 9
C hines e G amer International
T rans G aming, Inc.
DigitalP os t Interac tiv e, Inc.
8 7 7
F luid Mus ic C anada, Inc.
7
Dena C o. Ltd.
H U G HE S T elematics , Inc .
5 5
Acc eleriz e New Media, Inc .
Mix i, Inc.
5 4
C hangy ou.c om L imited
WebMediaB rands Inc
S K C ommunic ations C o., Ltd.
F rogs ter Interactive P ictures AG
4 4 4 3
T aleo C orp.
Motricity, Inc.
Wiz z ard S oftware C orporation
K ings oft C orporation L imited
is eemedia Inc.
EV/Revenue Ranking
3 3 3 2 2
O pen T ex t C orp.
eP ro Ltd.
Modern T imes G roup Mtg AB
NE O WIZ G ames C orporation
XING AG
S ohu. com Inc.
S core Media Inc.
V elti P lc
S hutterfly , Inc .
UO MO Media, Inc
P NI Digital Media Inc.
G ungHo O nline E ntertainment, Inc.
My riad G roup AG
V alueC lic k , Inc.
P latforma Mediowa P oint G roup S .A.
HanbitS oft, Inc .
Unilava C orporation
Webz en Inc .
NeuLion Incorporated
Y D O nline C orp.
NeXplore has highest
revenue multiple at 47x
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1
G amania Digital E ntertainment C o. , L td.
S park Network s , Inc.
Hutc his on T elec ommunic ations Hong K ong H oldings L td.
S NAP Interac tiv e, Inc.
Y nk K orea Inc .
O riented Media G roup B erhad
NetDragon WebS oft, Inc.
AQ Interac tiv e, Inc.
Internet G roup S A
O AO R B C Information S y s tems
P oints International Ltd.
T he New Y ork T imes C ompany
T heS treet.c om, Inc.
Northgate T ec hnologies L imited
U nis erv e C ommunications C orp.
DADA S pA
IAC /InterActiveC orp.
U nited O nline, Inc.
C DC C orp.
AO L, Inc .
G igaMedia Ltd.
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
G lu Mobile, Inc.
C yberplex Inc.
T ree.C om, Inc.
Ac toz S oft C o., L td.
O penwav e S y s tems Inc .
G ameO n C o Ltd.
J umbuck E ntertainment Limited
R ealNetwork s Inc.
As k net AG
Y ippy , Inc .
0 0 0 0 0 0 0 0 0 0
Mobile Data C orp.
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