09 05 05 Web 2.0 Weekly

SOFTWARE & SERVICES 5 MAY 2009

W E B 2 . O W E E K L Y

DAVID SHORE, CFA, MBA 416.860.6784

[email protected]

Arun Thomas (Associate) 416.860.7666

VIDEO SECTOR LEADS ACTIVITY IN APRIL – DISNEY INVESTS IN HULU

ACTIVITY SLOWED IN APRIL – SLOWEST MONTH IN 2009 The month of April saw 21 financings totall ing $144.5 mil lion, with not enough transactions (volume and size) to boost levels above any month in 2009. In perspective, February and March closed off at $185.5 mm and $159.5 mil lion, respectively. On a much more positive note, we saw the announcement from Disney taking a signif icant posit ion in Hulu - a strategic move in Web-TV distribution. This brings together three of the biggest broadcast and cable network owners under the same banner. Additionally, we would l ike to highlight that from a sector perspective, video saw the most amount of capital raised at $75.4 mil lion (Figure 4) over a 3-month period. Is this an indication of things to come?

Financing by Month

8.021.4

12.523.924.4

13.215.4

111.0

56.340.538.8

57.7

16.518.8

43.442.0

87.3

47.538.8

85.5

30.045.6

69.0

192.6

129.0

38.6

653.9

71.5

244.0

335.0

138.1

361.3

737.1

461.7

132.3

193.0

73.6

308.3

127.4

101.1114.6

225.8

185.5

159.5144.5

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

Jul-0

5

Sep-0

5

Nov

-05

Jan-

06

Mar

-06

May

-06

Jul-0

6

Sep-0

6

Nov

-06

Jan-

07

Mar

-07

May

-07

Jul-0

7

Sep-0

7

Nov

-07

Jan-

08

Mar

-08

May

-08

Jul-0

8

Sep-0

8

Nov

-08

Jan-

09

Mar

-09

(US

$m

m)

0

5

10

15

20

25

30

35

40

(#)

Capital Market Activity: The month of Apri l closed with 21 companies raising money, with GOOM Radio and Collective Media leading the l ist with $16 mil lion and $20 mill ion, respectively. The Rubicon Project (ad network sector) and Marin Software (Ad Networks sector) followed GOOM Radio, raising $13 mil lion.

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 19 companies showing positive returns on the week.Tree.com (TREE-NASDAQ) led the group with a 62.3% return, while Beyond Commerce Inc. (BYOC-OTCBB) had the worst return, dropping 10.7% in the week. Four companies had better than 20% price increases last week.

This report has been created by Analysts that are employed by Research Capital Corporation, a Canadian Investment Dealer.

For further disclosures, please see last page of this report. www.researchcapi ta l .com

Toronto 416 .860 .7600 Montrea l 514.399 .1500 Vancouver 604 .662 .1800 Calgary 403 .265.7400 Regina 306 .566 .7550

THE WE B 2 . 0 UNI VE RSE

Ninety-two public Web 2.0 companies identified: Our Web 2.0 universe contains 92 companies, with a combined market cap of ~$45 bill ion (Figure 1). The average market cap for the group is ~$493 mill ion (but a median of only $47.8 mill ion), with average trai ling revenue of $148.0 mil lion (median $54.4 mil lion). The companies are also generally profitable, with a median EBITDA margin of 15.9%. On a valuation basis, the overall average is 4.7x trai ling revenue (median 1.4x) and 9.7x trail ing EBITDA (median 8.5x). Fifteen of the companies have more than 500 employees.

C om p a ra ble C o m pan y A na lys i s > W eb 2 .0

C om pan y Nam e L TM a s o f T ic ke r E x c h ang e

Tr ading

C u rr enc y H Q

C u rr ent

P r ic e

U S D M a rke t

C ap ($m )

U S D L T M To ta l

R ev ($m )

US D L TM T ota l

E B ITDA ($m )

E B ITD A

%

TE V /L T M

R evenu e

T E V /L T M

E B IT DA E mp loyees

Acce le riz e N ew Me dia , Inc . 1 2/31 /200 8 AC LZ O T C B B U S D U nited S ta tes 0 .44 1 2.0 3. 8 (4 . 8) N M 4.3 x - 11

A ctoz S of t C o. , L td. 1 2/31 /200 8 A0 527 90 K O S E K R W S o uth K or ea 14, 150 9 5.0 73 . 6 1 4 .7 20 .0% 0.9 x 4.5x NA

AQ Inte ra c t ive , Inc . 1 2/31 /200 8 38 38 T S E J P Y J ap an 46 ,950 .00 2 5.7 60 . 7 4 . 9 8 . 0% - - NA

A s s o c ia ted Med ia H oldings Inc . 6 /30 /200 7 AS MH O T C P K U S D U nited S ta tes 0 0 .1 0. 1 (2 . 3) N M 8.1 x - 3 B ig st ring C o rp . 1 2/31 /200 8 B S G C O T C B B U S D U nited S ta tes 0 .02 1 .1 0. 1 (2 . 1) N M 29.8 x - 4

B e tawave C o rpo ra tion 1 2/31 /200 8 B W AV O T C B B U S D U nited S ta tes 0 3 .2 7. 7 (1 1 .8) N M - - 45

B e yo nd C omm er ce , In c . 1 2/31 /200 8 B Y O C O T C B B U S D U nited S ta tes 1 .33 5 5.0 1. 8 (8 . 6) N M 31.9 x - 43

B r ight T hings p lc 9 /30 /200 8 A IM :B G T A IM G B P U nited K ing dom 0 6 .6 0. 2 (1 . 7) N M 26.6 x - 9 B roa dW eb As ia Inc . 9 /30 /200 8 B W B A O T C P K U S D U nited S ta tes 0 .30 2 5.3 0. 0 (4 . 6) N M - - 46

C D C C orp. 9 /30 /200 8 C HIN .A N as da qG S U S D H ong K on g 1 14 1.2 428 .1 1 8 .8 4 . 4% 0.5 x 1 0.5 x 3 , 12 5

C ha ngyou. com L imite d 1 2/31 /200 8 C Y OU N as da qG S U S D C hina 32 .62 1,6 71.8 201 .8 11 8 .0 58 .5% 8.3 x 1 4.2 x 628

C hina G a te wa y C or po ra tio n 9 /30 /200 8 C G W Y O T C B B U S D U nited S ta tes 0 0 .0 6. 7 (6 . 6) -9 8 .9% 0.0 x - 37 C hine s e G am er In ter nation al 1 2/31 /200 8 G T S M :308 3 G T S M T W D T a iw an 224 .50 57 7.6 47 . 2 2 3 .8 50 .5% 11.1 x 2 2.0 x NA

C or nerW or ld C or por a tion 1 /31 /200 9 C WR L O T C B B U S D U nited S ta tes 0 6 .4 1. 3 N M N M 6.0 x - NA

C yber plex Inc . 1 2/31 /200 8 T S X :C X T S X C AD C ana da 1 .72 7 8.2 48 . 6 4 . 1 8 . 4% 1.6 x 1 8.7 x NA

D AD A S pA 9 /30 /200 8 C M:D A C M E U R Ita ly 7 14 8.7 226 .2 3 6 .1 16 .0% 0.9 x 5.3x 574 D XN Ho ld ings B hd 1 1/30 /200 8 D X N K L S E MY R Ma la ys ia 0 .40 2 6.0 78 . 6 1 0 .5 13 .3% 0.6 x 4.4x NA

D ibz Inte rn a tion a l, Inc . N A D IB Z O T C P K U S D U nited S ta tes 0 0 .0 N A N M N M - - NA

D igita lP o st Inte ra ctiv e , Inc . 9 /30 /200 8 D G LP O T C B B U S D U nited S ta tes 0 .02 1 .3 0. 4 (3 . 3) N M 5.4 x - 11

D igita lT own, In c . 1 1/30 /200 8 D G T W O T C B B U S D U nited S ta tes 3 7 8.5 N M (2 . 5) N M - - 3 D olph in D ig ita l Me dia , In c . N A D P DM O T C B B U S D U nited S ta tes 0 .55 2 7.1 N A N M N M - - 6

E o lith C o. L td. 1 2/31 /200 7 A0 410 60 K O S E K R W S o uth K or ea 885 5 0.1 19 . 7 (0 . 1) -0 . 3% 2.5 x - NA

E x te ns ions , Inc . 1 2/31 /200 8 E X T I O T C P K U S D U nited S ta tes 0 .15 1 4.2 N M N M N M - - NA

F inan c ia l Med ia G r oup , Inc . 1 1/30 /200 8 F NG P O T C B B U S D U nited S ta tes 0 0 .2 6. 8 1 . 2 18 .3% - - 22 F luid M us ic Ca nad a , In c . 9 /30 /200 8 T S X :F MN T S X C AD U nited S ta tes 0 .55 2 4.5 4. 2 (8 . 6) N M 2.5 x - 29

F ro gs te r In ter a c tive P ic tu re s AG 6 /30 /200 8 F R G X T R A E U R G erm any 9 2 7.3 5. 4 (3 . 3) -6 0 .6% 5.0 x - NA

G a ma nia D igita l E n ter ta inm en t C o. , L td. 1 2/31 /200 8 61 80 G T S M T W D T a iw an 34 .55 15 8.8 114 .0 1 6 .5 14 .5% 1.2 x 8.5x NA

G a me O n C o L td. 1 2/31 /200 8 38 12 T S E J P Y J ap an 96, 600 9 4.0 75 . 1 1 9 .4 25 .9% 0.5 x 2.0x NA G e oS e ntr ic O yj 1 2/31 /200 8 G E O 1 V H LS E E U R F inland 0 .04 4 7.8 5. 8 (1 3 .1) N M 6.9 x - 94

G ian t Int era ctiv e G r oup , Inc . 1 2/31 /200 8 G A N Y S E U S D C hina 8 1,8 62.2 233 .6 14 4 .6 61 .9% - - NA

G iga Med ia L td . 1 2/31 /200 8 G IG M N as da qG S U S D T a iw an 6 .16 33 2.8 190 .4 4 6 .0 24 .2% 1.4 x 5.6x NA

G rav ity C o. , L td 9 /30 /200 8 G R V Y N as da qG M U S D S o uth K or ea 1 2 7.2 38 . 6 7 . 4 19 .2% - - 636

G ree , Inc . 6 /30 /200 8 T S E : 363 2 T S E J P Y J ap an 5 ,520 .00 1,2 40.4 29 . 6 1 0 .6 36 .0% 39.8 x - NA G u ngH o O nlin e E n ter ta inm en t, In c . 1 2/31 /200 8 37 65 O S E J P Y J ap an 1 37, 700 15 8.8 113 .2 2 0 .2 17 .8% 1.2 x 6.8x NA

H an bitS of t, Inc . 1 2/31 /200 8 A0 470 80 K O S E K R W S o uth K or ea 4 ,485 .00 7 7.5 54 . 8 (1 5 .5) -2 8 .2% 1.1 x - NA

IAC /In ter A c tiv eC orp. 1 2/31 /200 8 IAC I N a s da qG S U S D U nited S ta tes 16 2,4 19.2 1 , 44 5.1 6 4 .6 4 . 5% 0.5 x 1 0.3 x 3 , 20 0

IA S E n erg y, Inc . 1 /31 /200 9 IA S C .A O T C B B U S D C ana da 0 .27 1 8.9 0. 0 (0 . 8) N M - - NA Id eaE dge, Inc . 1 2/31 /200 8 O T C B B : ID AE O T C B B U S D U nited S ta tes 0 1 8.1 0. 0 (4 . 6) N M - - NA

is ee med ia Inc . 1 2/31 /200 8 IE E T S X V C AD C ana da 0 .09 3 .9 1. 3 (5 . 0) N M 1.8 x - NA

J um bu ck E nter ta inm ent P ty L td. 1 2/31 /200 8 AS X : J MB AS X AU D Au s tra lia 0 1 7.0 13 . 2 4 . 9 37 .2% 0.9 x 2.5x 72

J um pT V Inc . 1 2/31 /200 8 T S X : J T V T S X C AD C ana da 0 .65 6 2.7 13 . 4 (8 . 4) -6 2 .6% 3.5 x - 237 K a boo s e In c. 1 2/31 /200 8 T S X :K AB T S X C AD C ana da 1 7 1.2 69 . 5 6 . 9 10 .0% 1.1 x 1 1.2 x NA

K in gs oft C o . L td . 1 2/31 /200 8 38 88 S E HK H K D C hina 3 .53 48 9.6 120 .2 4 6 .6 38 .7% 3.4 x 8.8x NA

L in go M edia C o rpor a tion 9 /30 /200 8 T S X V : LM T S X V C AD C ana da 1 9 .8 3. 4 (1 . 5) -4 2 .5% 3.1 x - NA

L ive W o rld Inc . 1 2/31 /200 8 LV WD O T C P K U S D U nited S ta tes 0 .13 4 .0 11 . 8 (0 . 5) -4 . 3% 0.3 x - NA Lo ok S m a r t, L td. 1 2/31 /200 8 LO O K N as da qG M U S D U nited S ta tes 1 2 1.9 65 . 0 (2 . 0) -3 . 1% - - 90

M agn itu de Inform a tion S y s tem s Inc . 9 /30 /200 8 MA G Y O T C B B U S D U nited S ta tes 0 .01 6 .1 0. 1 (3 . 2) N M - - 13

M ix i , In c. 1 2/31 /200 8 21 21 T S E J P Y J ap an 4 53, 000 70 0.2 118 .1 4 4 .9 38 .0% 5.0 x 1 3.3 x NA

M ode rn T im es G rou p Mtg AB 1 2/31 /200 8 MT G B OM S E K S wed en 220 .00 1,8 30.3 1 , 66 2.4 26 8 .2 16 .1% 1.4 x 8.7x 2 , 96 9 M ogg le , Inc 1 2/31 /200 8 MM O G O T C B B U S D U nited S ta tes 2 8 3.5 N M (1 . 1) N M - - 3

M O K O .m obi L im ited 1 2/31 /200 8 MK B AS X AU D Au s tra lia 0 .07 4 .7 1. 1 (2 . 2) N M 3.5 x - NA

N E OW IZ G am es C or po ra tion 1 2/31 /200 7 A0 956 60 K O S E K R W S o uth K or ea 60, 100 45 6.3 142 .2 3 8 .2 26 .9% 3.1 x 1 1.7 x NA

N etD r ago n W eb S oft , Inc . 1 2/31 /200 8 77 7 S E HK H K D C hina 5 .23 35 6.7 87 . 3 3 9 .9 45 .7% 2.5 x 5.5x 2 , 42 6 N ete a s e . c o m I nc . 1 2/31 /200 8 N T E S N as da qG S U S D C hina 31 3,7 85.1 451 .8 29 3 .8 65 .0% - - NA

N eX p lo re C o rp ora tion 9 /30 /200 7 N X P C O T C P K U S D U nited S ta tes 0 .45 2 5.1 N M (4 . 9) N M - - 19

N gi G r oup Inc . 1 2/31 /200 8 24 97 T S E J P Y J ap an 36, 800 4 5.8 99 . 0 3 0 .5 30 .8% - - NA

N or thg ate Te chno lo gies L im ited 1 2/31 /200 8 59 005 7 B S E INR Ind ia 39 .80 2 8.0 135 .8 2 3 .9 17 .6% 0.2 x 1.2x 286 O pen T e xt Co rp . 1 2/31 /200 8 O T E X N as da qG S U S D C ana da 33 1,6 88.3 769 .3 19 5 .0 25 .3% 2.4 x 9.3x 3 , 40 0

O penwave S ys t em s Inc . 1 2/31 /200 8 O P W V N as da qG S U S D U nited S ta tes 1 .26 10 5.0 199 .6 (1 0 .2) -5 . 1% 0.1 x - 627

P e rf ec t W or ld C o. , L td. 1 2/31 /200 8 P W R D N as da qG S U S D C hina 18 97 0.2 210 .5 11 3 .9 54 .1% - - NA

P h oto Ch ann el N etwork s Inc . 1 2/31 /200 8 T S X V : P N T S X V C AD C ana da 1 .50 4 3.5 16 . 9 (0 . 8) -4 . 9% 2.5 x - NA Q u epa s a C or p. 1 2/31 /200 8 Q P S A N as da qC M U S D U nited S ta tes 1 1 1.4 0. 1 (1 1 .4) N M - - 74

O A O R B C Inform a tion S y s tem s 1 2/31 /200 7 R B C I R T S U S D R us s ia 0 .99 13 6.6 144 .1 1 8 .8 13 .1% 0.0 x 0.2x NA

S h and a In tera c tive E nter ta inme nt L td. 1 2/31 /200 8 S N D A N as da qG S U S D C hina 52 3,6 37.7 522 .8 24 0 .2 46 .0% 0.2 x 0.5x NA

S h utte rf ly , In c . 1 2/31 /200 8 S F LY N as da qG S U S D U nited S ta tes 13 .12 33 0.3 213 .5 2 8 .4 13 .3% 1.1 x 8.5x 514 S K C ommun ic a tions Co . , L td. 1 2/31 /200 7 A0 662 70 K O S E K R W S o uth K or ea 9, 720 31 5.2 163 .5 1 5 .4 9 . 4% 1.9 x 2 0.5 x NA

S N AP Inte ra c tiv e , Inc . 1 2/31 /200 8 S T V I O T C B B U S D U nited S ta tes 0 .67 7 .2 3. 0 0 . 9 31 .4% 1.9 x 6.1x 11

S N M G loba l H old in gs 9 /30 /200 8 S N MN O T C P K U S D U nited S ta tes 0 0 .0 2. 0 (0 . 7) -3 4 .8% 1.1 x - 33

S o c ia l Med ia V e nur es , In c . 1 2/31 /200 8 S M V I O T C P K U S D U nited S ta tes 0 .01 0 .0 0. 1 (0 . 1) -6 0 .5% 0.0 x - NA S o hu. com Inc . 1 2/31 /200 8 S O H U N as da qG S U S D C hina 58 2,2 02.1 429 .1 18 0 .5 42 .1% 4.4 x 1 0.5 x 3 , 19 7

S ite s ear ch C or po ra t io n 1 /31 /200 9 S T P C O T C B B U S D U nited S ta tes 3 .50 2 8.2 N M (1 . 1) N M - - 15

S p a r k N etwor k s , Inc . 1 2/31 /200 8 LO V AM E X U S D U nited S ta tes 3 5 4.5 57 . 3 1 2 .3 N M 1.0 x 4.4x 183

S p ec tr um DN A , Inc . 1 2/31 /200 8 S P XA O T C B B U S D U nited S ta tes 0 .25 1 2.2 0. 1 (2 . 5) 48 .9% - - 7 T en cent Ho ld in gs L td. 1 2/31 /200 8 70 0 S E HK H K D C hina 69 16,0 34. 1 1 , 04 8.0 51 2 .6 -1 2 .0% 16.7 x 3 4.1 x 6 , 19 4

T he P ar en t C om pan y 8/2/2008 K ID S .Q O T C P K U S D U nited S ta tes 0 .01 0 .3 112 .0 (1 3 .5) 33 .7% 0.2 x - 347

T he 9 L im ited 1 2/31 /200 8 N C T Y N as da qG S U S D C hina 10 25 9.1 250 .2 8 4 .3 9 . 7% - - NA

T he S tr eet . c om , Inc . 1 2/31 /200 8 T S C M N as da qG M U S D U nited S ta tes 2 .14 6 5.5 71 . 9 7 . 0 -5 0 .6% - - 310

T ot a l S po rt O nline A S 3 /31 /200 6 T O S O O T C NO NO K N orwa y 0 0 .1 2. 1 (1 . 0) -1 0 .4% 4.6 x - 16 T ree .C om , In c . 1 2/31 /200 8 T R E E N as da qG M U S D U nited S ta tes 9 .48 9 4.6 228 .6 (2 3 .9) 0 . 4% 0.4 x - 700

U nis er ve C ommunic a tion s Co rp . 1 1/30 /200 8 T S X V : US S T S X V C AD C ana da 0 0 .8 25 . 3 0 . 1 23 .0% 0.1 x 2 9.5 x NA

U nited O nline Inc . 1 2/31 /200 8 U NT D N as da qG S U S D U nited S ta tes 5 .68 47 1.6 669 .4 15 3 .9 -7 8 .2% 1.2 x 5.1x 1 , 46 9

U OMO Med ia , Inc 1 /31 /200 9 U OMO O T C B B U S D C ana da 0 1 2.0 0. 6 (0 . 5) 18 .2% 19.4 x - NA V a lueC lic k Inc . 1 2/31 /200 8 V C LK N as da qG S U S D U nited S ta tes 11 .00 95 4.3 625 .8 11 3 .6 N M 1.3 x 7.3x 1 , 18 9

V O IS , In c. 1 2/31 /200 8 V O IS O T C B B U S D U nited S ta tes 0 2 .7 0. 0 (1 . 3) -1 9 .8% - - 4

W eb ze n In c . 1 2/31 /200 8 W Z E N N as da qG M U S D S o uth K or ea 2 .87 3 4.0 22 . 5 (4 . 4) -9 8 .2% - - NA

W iz za rd S of twa re C o rpora tion 1 2/31 /200 8 W Z E AM E X U S D U nited S ta tes 1 2 9.2 6. 1 (6 . 0) N M 4.8 x - 110 W or lds . c om In c. 9 /30 /200 8 W DD D O T C B B U S D U nited S ta tes 0 .17 8 .9 0. 1 N M N M - - 1

W ynds to rm C orpor a tio n N A W Y N D O T C B B U S D U nited S ta tes 0 0 .5 N A N M 32 .0% - - NA

X IN G AG 1 2/31 /200 8 O 1B C X T R A E U R G erm any 29 .90 20 4.4 46 . 6 1 4 .9 22 .4% 3.2 x 9.9x 174

Y e dan gO nline C o rp . 1 2/31 /200 7 A0 527 70 K O S E K R W S o uth K or ea 8, 810 10 8.7 54 . 1 1 2 .1 -7 . 6% 2.0 x 8.9x NA Y n k K or ea Inc . 1 2/31 /200 7 A0 237 70 K O S E K R W S o uth K or ea 6 ,030 .00 1 1.7 15 . 4 (1 . 2) N M 0.8 x - NA

Z ipLo cal Inc . 1 2/31 /200 8 T S X V : ZIP T S X V C AD C ana da 0 0 .3 2. 8 (2 . 9) 0 . 0% 0.6 x - NA

H igh 16,0 34. 1 1 ,662 .4 51 2.6 65 .0% 39.8 x 3 4.1 x 6 ,194

Low 0 .0 0.0 - 23 .9 -9 8 .9% 0.0 x 0.2x 1

A vera ge 49 3.4 148 .0 33 .2 7 .4% 4 .7x 9 .7x 678

M edian 4 7.8 54. 4 1 .1 15 .3% 1.4 x 8.5x 174

Figure 1. Web 2.0 Universe Summary Source. Capital IQ

CAPIT AL M ARKET S ACT IV I TY (M &A AND F I NANCI NG )

April activity slowest month year-to-date: The month of Apri l closed with 21 financings totall ing $144.5 mil lion. Seven of the 21 deals were greater than or equal to $10 mill ion and two deals were greater than $15 mil lion. The month of March registered 23 financings (total $159.5 mill ion, average $6.5 mil lion) compared to 25 financings announced in February, totall ing $185.5 mill ion, or $7.4 mill ion on average (Figure 2). The average value for February was above the $6.8 mill ion average for January, with four financings over $15 mil lion in February (Twitter, Synthasite, Tremor Media, and Offerpal Media) vs. no deals over $15 mill ion in January.

Financing Activity Last Three Months

0.0

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5.6

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6.0

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Figure 2. Financings, Last Three Months Source. Company reports

Collective Media largest deal in April: Collective Media topped the list in April with a $20 mil lion raise, fol lowed by Goom Radio with $16 mill ion. There were five deals greater than or equal to $10 million (Figure 3). For additional details, refer to Figures 29 and 30 (at end of note).

Financing Summary - Last Three Months

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et

AdultS

pace

MM

O L

ife

Cake F

inancia

lM

yn

gle

Jodan

ge

33A

cro

ss

fav.o

r.it

Thre

e M

elo

ns

Food

ista

(US

$m

) Apr-09

Mar-09

Feb-09

Figure 3. Capital Market Activity, Last Three Months Source. Company reports

Video and Social Networks continue to be the most active sectors: Activity over the last three months was busiest in the Video sector with nine companies raising over $75.4 mil lion, closely fol lowed by Social Networks with $74.4 mil lion on 12 deals. (Figure 4).

Capital Market Activity by Sector - Last Three Months

75.4 74.4

57.454.9

41.437.0

22.5 20.617.4 15.0 14.3 12.0 12.0 11.0

6.5 5.5 4.7 4.1 4.1 3.9 3.1 2.6 2.0 2.0 1.3 1.30.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

Vid

eo

Socia

l Netw

ork

s

Media

Ad N

etw

ork

Gam

ing

Mic

roblo

g

Aggre

gatio

n

Wik

i

Analy

tics

Virtu

al G

oods

Searc

h

Lendin

g

Mobile

Tra

vel

Virtu

al W

orld

Mobile

Ad

Socia

l Com

merc

e

Wid

get

Pub

lishin

g

Infr

astr

uctu

re

Vis

ual C

om

merc

e

Com

ment/

Reputa

tion

Cro

wdso

urc

ed

Conte

nt

Fin

ancia

l Serv

ices

SA

S

Onlin

e L

ea

rnin

g

9 12 7 6 7 2 4 2 4 1 2 1 1 2 2 1 1 1 1 1 1 2 1 1 1 1

(US

$m

)

# companies

Figure 4. Capital Market Activity, by Sector, Last Three Months Source. Company reports

Average round size decreases: On a trai ling 12-month basis, total f inancing dollars fel l as of April 2009, with average round sizes decreasing sl ightly (Figure 5).

LTM Financing

0.0

500.0

1,000.0

1,500.0

2,000.0

2,500.0

3,000.0

3,500.0

4,000.0

Jul-05

Sep-0

5

Nov-0

5

Jan-0

6

Mar-

06

May-0

6

Jul-06

Sep-0

6

Nov-0

6

Jan-0

7

Mar-

07

May-0

7

Jul-07

Sep-0

7

Nov-0

7

Jan-0

8

Mar-

08

May-0

8

Jul-08

Sep-0

8

Nov-0

8

Jan-0

9

Mar-

09

(US

$m

)

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

(US

$m

)

Total Average

Figure 5. Financings, Last 12 Months Source. Company reports

Cumulative total nears $6.2 billion: Overall, on a cumulative basis, Web 2.0 financings have totalled nearly $6.2 bil lion, with the majority of the financing coming in late 2007 and the first three quarters of 2008 (Figure 6). Financing for the first quarter of 2009 passed that raised in the fourth quarter of 2008 – reversing the downtrend since the second quarter last year. However, for the period ended Q1/CY09, total capital raised was below the Q1/CY08 level (at $748.2 mill ion).

Web 2.0 Financing (cumulative)

38.8 20.1

88.347.5 33.5 22.2 41.9 61.5

126.4135.693.0

172.7171.8144.5

360.1

969.4

834.4

1,331.1

574.9

343.1

570.8

0.0

200.0

400.0

600.0

800.0

1,000.0

1,200.0

1,400.0

Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1

2004 2005 2006 2007 2008 2009

(US

$m

)

0.0

1,000.0

2,000.0

3,000.0

4,000.0

5,000.0

6,000.0

7,000.0

(US

$m

)

Figure 6. Financing, Cumulative Source. Company reports

U.S. remains dominant: U.S. companies continue to dominate capital market activity – with 67.9% of f inancings/M&A involving U.S. companies (based on dollars) (Figure 7). Based on number of transactions, the U.S. leads with 73.1% of deals, while Canada is third in number of f inancings at 4.5% (Figure 8).

Financing/M&A by Country - LTM ($)

Russia

3.8%

UK

2.2%

USA

67.9%

ROW

4.9%

Denmark

1.5%

Israel

1.8%

China

15.7%

France

2.2%

Financing/M&A by Country - LTM (#)

France3.4%

Canada4.5%

Israel3.0%

UK4.9%

ROW11.0%

USA73.1%

Figures 7 & 8. Financing/M&A, by Country (LTM, $, #) Source. Company reports

Larger volume of 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 9). Series B rounds are 28.7% of the total, with later-stage (Series D, E and PIPE) deals accounting for just 8.8%.

Financing by Type - LTM

PIPE

1.9%

Series A

35.3%

Series B

28.7%

Debt financing

2.7%

Series C

15.1%

Series D

4.7%

Angel/Seed

11.6%

Figure 9 Financing, by Type (LTM, #) Source. Company reports

Equity financings smaller over last 12 months: In the last 12 months, the average size of Series A, B, C and D rounds has all been lower than the overall average (Figure 10).

Average financing round size

3.3

36.1

7.9

5.4

11.6

18.3

21.6

10.8

2.6

30.6

5.8

7.0

11.6

26.7

29.7

10.8

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

Angel/Seed Debt financing PIPE Series A Series B Series C Series D Series E

(US

$m

)

LTM Average Size Overall Average

Figure 10. Average Size per Round Source. Company reports

CAPIT AL M ARKET S ACT IV I TY (P RI CE PE RFO RM ANCE )

Price Performance: Our Web 2.0 index (market-cap weighted) underperformed the NASDAQ composite index from mid-2008 unti l recently when it has moved sharply higher than the NASDAQ index (Figure 11).

Web 2.0 Index Price Performance

0

20

40

60

80

100

120

5/5

/2008

5/1

9/2

008

6/2

/2008

6/1

6/2

008

6/3

0/2

008

7/1

4/2

008

7/2

8/2

008

8/1

1/2

008

8/2

5/2

008

9/8

/2008

9/2

2/2

008

10/6

/2008

10/2

0/2

008

11/3

/2008

11/1

7/2

008

12/1

/2008

12/1

5/2

008

12/2

9/2

008

1/1

2/2

009

1/2

6/2

009

2/9

/2009

2/2

3/2

009

3/9

/2009

3/2

3/2

009

4/6

/2009

4/2

0/2

009

5/4

/2009

^COMP - Share Pricing Index: Web 2.0 X (Market Cap)

Figure 11. Web 2.0 Price Performance Source. Capital IQ

Tree.com leads; Beyond Commerce falls: Most of the companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1) (Figure 12), with 19 companies showing positive returns on the week. Tree.com (TREE-NASDAQ) led the group with a 62.3% return, while Beyond Commerce Inc. (BYOC-OTCBB) had the worst return, dropping 10.7% in the week

1 Week Price Performance

-10.7%

-8.9%

-8.7%

-5.3%

-4.0%

-3.2%

-3.1%

-3.0%

0.4%

0.7%

1.7%

3.2%

3.8%

4.9%

5.9%

9.6%

10.8%

11.9%

13.5%

13.9%

17.6%

17.8%

19.6%

21.7%

29.4%

39.8%

62.3%

-20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%

Beyond Commerce, Inc .

TheS treet.com, Inc .

G igaMedia Ltd.

LookSmart, Ltd.

Frogs ter Interactive Pictures AG

PhotoChannel Netw orks Inc .

Giant Interactive Group, Inc .

Open Tex t Corp.

XING AG

IAC/InterA ctiveCorp.

Neteas e.com Inc .

Webzen Inc .

Modern Times Group Mtg A B

The9 L imited

Openw ave S ys tems Inc .

Perfect World Co. , Ltd.

S handa Interactive Entertainment Ltd.

CDC Corp.

V alueClick Inc .

S ohu.com Inc .

DADA S pA

S park Netw orks , Inc .

United Online Inc .

Changyou.com Limited

S hutterf ly , Inc .

Cyberplex Inc .

Tree.Com, Inc .

Figure 12. 1-Week Price Performance Source. Capital IQ

INDUST RY NE WS (P ART NE RS HI PS, F I NANCI AL RES UL TS, NE W P RO DUCT S )

K ey Developments

Company Headline Notes

Accelerize New Media, Inc.

(OTCB B:ACL Z)

Acceleriz e New Media Inc . to T erminate Chris Meredith

as Chief Technology O fficer, E ffec tive April 30, 2009

On April 24, 2009 the B oard o f Directors of the Acceleriz e New Media Inc . dec ided to terminate the employment of C hris Meredith, the

company's C hief T echnology Officer. T he termination of employment is effec tive as of April 30, 2009. M r. Meredith will continue to s erve as a

member of the company 's B oard of D irectors until he res igns, i s removed or replaced by a vote of the sha reholders .

NetDragon WebSoft, Inc. (S EHK :777) NetDragon Launches Open B eta Tes ting for T he

W arlords in North America

NetDragon W ebS oft Inc . announced that The W arlords, the E nglis h version of Tou Ming Zhuang Online, entered its open beta testing on

April 24. T he W arlords is a 2. 5 D MMORP G game jointly crea ted by NetDragon and C hina Film G roup, sharing the s ame story as the f ilm

titled T he Warlords . I t exhibits traditiona l Chines e martia l arts through complica ted stories s et in the late Q ing Dynas ty .

B eyond Commerce, Inc .

(OTCB B:B YOC)

B eyond Commerce I nc. Announces the Launch of

LocalA dlink

B eyond Commerce Inc . announced the off icia l launch of Loca lAdL ink .com, a low cos t provider of online advertising for loca l bus iness es

acros s the nation. LocalAdL ink is a provider of serv ices tha t enabl e loca l bus ines ses to re ach loca l customers with targeted Internet

advertis ing. T he cus tomer fac ing W eb s ite, LocalAdLink .com, is a local search directory and acts a s the centra l hub for the Loca lAdL ink

technology. W hen a cus tomer vis its LocalAdLink .com, proprieta ry geo-targeting s oftware identifies the cus tomer's location and dis plays

relevant loca l busines s lis tings . I n addition, LocalAdLink has c reated an Advertising Network tha t publis hes local bus iness listings on its

owned and opera ted s ites, as well as pa rtner sites .

P earson plc (L S E :PSON); Worlds .com

Inc. (OTC BB :WDDD)

Worlds. com Inc . S igns A greement with P ears on plc W orlds. com Inc . has announced that it has s igned an agreement with P ea rson plc to develop a s eries of 3D vi rtual worlds tha t may be

utiliz ed for implementa tion within ex isting P earson educationa l and digita l programs . Terms of the agreement were not released. P ea rs on

has stated that it is committed to investments tha t complement the goal s of its programs , particula rly to enhance student achievement. W ith

W orlds. com's virtua l world capability and 15 years of experience, P ea rs on will explore opportunities to enhance s tudent lea rning and

engagement. W orld's us ers crea te avatars that navigate through v irtual worlds as well as build their own worlds on a P 2P network . The

company is building on ex isting formats to improve web capabilities in the 3D online environment.

P hotoC hannel Networks Inc.

(TSXV:PN)

PhotoC hannel Network s Inc . Appoints R obert Chis holm

to I ts B oard

P hotoC hannel Networks Inc . announces that former C FO , R obert C hisholm, has joined the B oard of D irectors, effective immediately. Mr.

Chis holm had been PN I's C FO for more than seven years, until March 26th, 2009 when he left to purs ue other opportunities. At that time,

S imon B odymore was promoted to C FO .

Wizzard Software Corporation

(AMEX: WZE )

W izz ard Announces the R elease of Alchemy 2.1 W izza rd S oftware C orporation announced the releas e of Alchemy 2. 1 with seamles s integration into the L ibs ynP R O/W iz za rd Media

Advertis ing Network . N ow, advertis ing campaigns run in podcast downloads can automatically play through the W iz za rd Media flas h player

with advanced track ing and interac tive capabilities . No need to use separa te s y stems to run ads in downloaded media and s treaming media .

The same ads play when downloaded in i Tunes , played through mobile iT unes on the iP hone and played online through the f las h bas ed

media player. The Alchemy 2. 1 implementation of the W izz ard Media flas h player adheres to the IAB VAS T (V ideo Ad S erving T emplate)

standard tha t a llows for simple plug-n-play for third party advertis ing s ys tem integra tion. T he new s ys tem work s with AOL 's P latform A a nd

ADT E CH and W izz a rd plans to expand the capabilities to include DoubleC lic k and Atla s in the near future. The measuring of advertis ements ,

cons umer c lick throughs to advertis er's web s ites and audience feedback res ponses are a ll tracked us ing N ielsen//N etR ating.

J umpTV Inc . (TS X :J TV) NeuL ion Launches New I P TV Network for R omanian

Audiences in North America

NeuL ion Inc . announced the launch of a new s tate-of-the-art I P T V network for R omanian audiences in North America . iT V R S N provides

viewers an ex tens ive selection of R omanian televis ion programs from R oma nia . iTV R S N's content offering i ncludes more than 25 televis ion

programs with exc lus ive distribution rights outs ide R omania . T his is a long awa ited solution for R omanian expatriates and R omanian

speak ers in the U. S . and Canada interes ted in watching telev is ion from home. The s et-top-box serv ice provides the R omanian community

with content de livered in high digita l qua lity direct to the televis ion s et through the Internet. iT V R S N 's content offering inc ludes: C onstanta

TV , T araf T V , E TNO TV , Neptun T V , G ameX, B rava TV , R omanian T elevis ion Network (R TN ), R omanian Chris tian T V , Antena Internationa l,

Favorit TV , K anal D , MT V , N24, Nationa l TV , P rima TV , P roTv I nternational, R ea lita tea T V , T elesport, T V R Cultural, T V R International,

TV R 3, T rinitas T V , U TV and others.

DigitalPos t Interactive, Inc.

(OTCB B:DGLP)

Digita lP os t Interactive S igns $340,000 Contract with a

Leading Internet S earch Company

Digita lP ost Interactive I nc. s igned a $340, 000 contra ct to ins ta ll a cus tom-des igned interactive-media management sy stem for a leading

Internet se arch company prov iding ins tant rich media I nternet v isibi lity for their bus ines s pa rtners . T he content management s ys tem,

scheduled for delivery by S eptember 30, 2009, i s the infras tructure for a new interactive media pla tform that will enable the customer to offer

a broad range of i nteractive digita l media capabilities for its bus ines s cus tomers . T his is the s econd contract awarded to Digita lP os t by this

industry leader.

TheS treet.com, Inc . (NasdaqGM:TSCM) E ric As hman to R esign as C hief Financ ial Officer of

TheS treet.com, Inc

E ric As hman notif ied TheS treet. com Inc. on April 27, 2009 tha t he will resign from his pos ition as Chief Financ ial Officer of the C ompany ,

effective May 8 , 2009, in order to purs ue other bus ines s interes ts. Mr. As hman has advised the company that he will remain in his position

through the fi ling of the company's F orm 10-Q for the quarter ended March 31, 2009 and pa rtic ipate in the company 's quarterly ea rnings call

with I nterim CE O, Daryl Otte.

IAC /InterActiveC orp. (NasdaqGS : IAC I) Update to IAC /I nte rA ctiveC orp’s E quity B uyback on April

29, 2009

On April 29, 2009, I AC/InterAc tiveCorp. announced that durin g the quarter ending March 31, 2009, it has repurchase d 2, 400,000 sha res for a

total cos t of $35.95 million under the program. As of March 31, 2009, IAC has repurchase d approximately 9,980, 754 sha res for an

approximate cos t of $446. 03 million under the program.

IAC /InterActiveC orp. (NasdaqGS : IAC I) Update to IAC /I nte rA ctiveC orp’s E quity B uyback on April

29, 2009

On April 29, 2009, I AC/InterAc tiveCorp. announced that durin g the quarter ending March 31, 2009, it has repurchase d 2, 400,000 sha res for a

total cos t of $35.95 million under the program. As of March 31, 2009, IAC has repurchase d approximately 9,980, 754 sha res for an

approximate cos t of $446. 03 million under the program.

Openwave Sys tems Inc .

(NasdaqGS :OPWV)

Openwave S ystems Inc . R eports E arnings R es ults for

Third Quarter and Nine Months E nded March 31, 2009

Openwave S ystems Inc . announced that revenues for the thi rd f iscal quarter ended March 31, 2009 were $44.7 milli on, compared with $48. 1

million in the prior quarter ended December 31, 2008 and $47.0 million in the March quarter in the preceding year. B ookings for the quarter

were $37.6 mill ion. On a GAAP basis , net los s for the third fis ca l quarter ended March 31, 200 9 was $7.8 million, or $0. 09 per s ha re,

compared with $64. 2 million, or $0.77 per s hare, in the prior quarter, and $14.7 million, or $0.18 per s ha re, in the March quarter in the

preceding year. G A AP net los s for the December quarter inc ludes an impa irment to goodwill of $59.5 milli on. On a non-GAAP basis , net

income, whi ch exc ludes restructuring cos ts, the impairment of goodwill, amortiz ation of intangibles and other acquis ition-related cos ts , s tock -

based compens ation, cos ts as s ociated with the s tock option lawsuit and s pecia l inves tigation, dis continued opera ti ons, and other-than-

tempora ry impa irment of inves tments, for the third quarter ended March 31, 2009 was $385,000, or $0.00 per sha re, compared with a net

income of $1.4 million, or $0. 02 per s ha re, in the prior quarter and a net loss of $7.2 million, or $0. 09 per s ha re, during the March quarter of th

Unis erve C ommunications C orp.

(TSXV:USS )

Unis erve Communications C orp. R eports Unaudited

Cons olida ted E arnings R es ults for the Third Quarter and

Nine Months E nded February 28, 2009

Unis erve Communications C orp. reported unaudited consolida ted ea rnings results for the third quarter and nine months ended F ebruary 28,

2009. For the quarter, the company reported operating loss of CAD 399, 846, los s before income taxes of C AD 693,831, net loss and

comprehens ive loss of CAD 693, 831 or CA D 0.03 diluted los s per s hare on revenues of CA D 4,427, 506 compared to the opera ting loss of

CAD 579, 560, los s before income tax es of C AD 1,283, 566, net los s and comprehens ive loss of CAD 1, 151, 266 or CAD 0. 05 di luted loss per

sha re on revenues of C AD 8,266, 102 for the same quarter year ago. F or the quarter, the company reported cas h provided by operating

activities of C AD 46,097 compared to the C AD 816, 888 for the s ame quarter year ago.

For the nine months period, the company reported opera ting los s of CA D 1,923, 120, income before income taxes of C AD 1,295, 122, net

income and comprehens ive income of C AD 1,269, 058 or C AD 0.04 diluted los s per share on revenues of C AD 17,900, 566 compared to the

opera ting loss of CAD 630, 550, los s before income taxes of C AD 2, 240,379, net los s and comprehens ive los s of CAD 2, 288, 079 or CAD

0.10 diluted los s per s hare on revenues of CA D 25,410, 903 for the same period yea r ago. F or the period, the company reported cas h us ed in


(OTCB B:ACL Z)

Acceleriz e New Media Inc . E nters Launches P roprieta ry

Lead G enera tion P la tform

Accelerize New Media Inc . announced the public lau nch of its proprietary lead generation platform. K ey advantages of the proprietary

pla tform a re its s calability and vertica l independence, us ing smart technology to provide optimal va lue to buyers and sellers . T he fully

automated lead genera tion pla tform accepts and va lida tes leads from more than 50 company-owned web s ites and 125 third-pa rty

publishers . Leads are then s cored and dis tributed into a queu e manager, which a llows for rea l-time s ale of qua lified leads. The pla tform's

proprietary predic tive concurrent router effic iently delivers leads utilizing cutting edge technologies , lik e predictive purchas ing and dynamic

pricing.

IAC /InterActiveCorp. (NasdaqGS : IAC I) IAC /InterActiveCorp. R eports Unaudited C onsolidated

E arnings R esults for the F irs t Quarter E nded March 31,

2009 ; Announces Impa irment C harges for the F irs t

Quarter of 2009

IAC/InterActiveCorp. reported unaudited consolidated earnings res ults for the firs t quarter ended March 31, 2009. F or the quarter, the

company reported operating los s of $33.12 million, los s from continuing operations before income taxes of $32.56 million, net los s of $28.64

million and net los s a ttributable to the company s hareholders of $28.38 million or $0.19 per diluted s hare on revenue of $332.01 million

compared to operating los s of $11.11 million, ea rnings from continuing operations before income taxes of $0.58 million, net ea rnings of

$52.48 million and net ea rnings a ttributable to the company s hareholders of $52.82 million or $0.38 per diluted s hare on revenue of $370.65

million for the s ame period a year ago. Operating los s before amortiza tion was $3.2 million compared to operating income before

amortiza tion of $18.6 million reported a year ago. T he company reported los s from continuing operations of $29.88 million or $0.20 per

diluted s hare compared to $3.45 million or $0.02 per diluted s hare for the s ame period a year ago. Adjus ted net los s was $3.0 million or

$0.02 per diluted s hare compared to adjus ted net income of $10.6 million or $0.07 per diluted share for the s ame period a year ago. Net cash

Shutterfly, Inc. (NasdaqGS :SFLY) S hutterfly Inc. R eports E a rnings R esults for the F irs t

Quarter E nded March 31, 2009; P rovides E a rnings

Guidance for the S econd Quarter and F ull Y ear of 2009

S hutterfly Inc. reported earnings results for the firs t quarter ended March 31, 2009. F or the quarter, the reported los s before income taxes of

$9,160,000, net los s of $6,232,000 or $0.25 per share on net revenues of $36,012,000 agains t los s before income taxes of $7,112,000, net

los s of $3,639,000 or $0.15 per share on net revenues of $34,338,000 for the s ame period a year ago. According to Non-G aap, the company

reported operating los s of $6,156,000, net los s of $2,951,000 or $0.12 diluted los s per share, negative adjus ted E B ITDA of $728,000 agains t

operating los s of $6,135,000, net los s of $4,139,000 or $0.16 diluted los s per share, negative adjus ted E B ITDA of $114,000 for the s ame

period a year ago. Net cas h us ed by operating activities of $19,258,000 agains t net cas h us ed by operating activities of $12,030,000 for the

s ame period a year ago.

T he company provides earnings guidance for the s econd quarter of 2009. Net revenues to range from $34 million to $37 million, a year-over-

year change of (4% ) to 4% . G AAP operating los s to range from $13 million to $11 million. Non-GAAP operating los s to range from $10

million to $8 million. GAAP diluted net los s per s hare to range from $0.30 to $0.14. Non-GAAP diluted net los s per s hare to range from $0.41 to $0.20. Adjus ted E B ITDA to range from $3.0 million to $1.0 million. GigaMedia Ltd. (NasdaqGS :G IGM) G igaMedia Ltd. Announces R es ignation Daniel W u as

Chairman and Director

G igaMedia L td. announced the res ignation of its chairman and director Daniel W u for pers onal reas ons . Mr. W u became cha irman of the

board of directors in J uly 2003 and submitted his res ignation citing persona l and family obligations . T he res ignation is effective April 29,

2009.

Open Text Corp. (NasdaqGS :OTEX) Loblaw Companies S elects Open T ext E CM S uite Open T ext C orp. announced that Loblaw Companies L imited has chosen Open T ext's E CM S uite. T he a rchiving and records management

capabilities of the Open T ext E CM S uite will enable Loblaw users to more effectively ensure s torage and acces s ibility of data and

information, according to their value, acros s the entire retention period, while helping to reduce data s torage cos ts .

PhotoChannel Networks Inc.

(TSXV:PN)

F red Meyer and K ing S oopers S elect P hotoChannel

Networks Inc. to Deliver their Next Generation Online

P hoto S ite and K ios k

P hotoChannel Networks Inc. announced that it has been selected by F red Meyer and K ing S oopers (both K roger companies ) to deliver their

next generation online photo s ite and kiosk . T he company will deliver two new photo s ites branded for F red Meyer and K ing S oopers , as well

as over 700 k ios k software deployments . T he kiosk s oftware is part of the company's 'C onnected K ios k' program and was recently acquired

as part of the purchas e of W orks Media, now integrated to the P NI P la tform. B es ides providing 1-hour print capabilities , both the online s ite

and the kiosks will be fully outfitted with a large selection of gift products . T he new s ervices will s tart being deployed in the current quarter.

DigitalFX International, Inc .

(OTCBB :DGFX)

Digita lF X International Inc. Launches new Web P ortal for

E -Marketing T ools Ava ilable to the P ublic at the C lick of a

Mous e

Digita lF X Internationa l Inc. announced that its VMdirect unit launched a new Web porta l www.vmdirect. com which enables its members and

the public to more eas ily acces s and take advantage of its unique internet marketing platform and program opportunity. T he VMdirect new

user-friendly porta l provides a s ingle central gateway for the varied and us eful tools , deta iled compensation plan information and other

res ources that VMdirect offers to its Affiliates , including its highly prized 'T ake C harge' s eminars . T he intuitive web marketing tools and their

wide range of usage res pond to market mandate for solutions which enhance sa les , efficiency, cus tomer s ervice and accountability. T he

porta l will guide us ers to the new ComF5 S uite ('F 5') product line, a s ta te of the art e-marketing tool powered by AttainR espons e LLC that will

enable small and medium bus ines s es to eas ily create and dis tribute email marketing campaigns at an a ffordable price.

OAO RBC Information S ys tems

(RTS :RBC I); RBC Bank; Service

Terminal

S ervice T erminal and a few individuals acquired 98.2%

s take in R B C B ank from OAO R BC Information S ys tems

(R T S : R B C I) for R UB 300 million.

S ervice T ermina l and a few individua ls acquired 98.2% s take in R B C B ank from OAO R B C Information S ys tems (R T S : R B C I) for R UB 300

million on April 30, 2009.

S ervice T ermina l and a few individua ls completed the acquis ition of 98.2% s take in R B C B ank from OAO R B C Information S ys tems (R T S :

R B C I) on April 30, 2009.

Beyond Commerce, Inc.

(OTCBB :BYOC)

Beyond Commerce, Inc. has filed a S helf R egis tration in

the amount of $4.73 million.

B eyond Commerce, Inc. has filed a S helf R egis tra tion in the amount of $4.73 million.

L ingo Media Corporation (TSXV:LM) Lingo Media C orporation R eports E arnings R es ults for

the F ourth Quarter and F ull Y ear E nded December 31,

2008

L ingo Media C orporation reported earnings res ults for the fourth quarter and full year ended December 31, 2008. F or the quarter, the

company reported revenue from continuing operations were CAD 534,311 compared to CAD 617,531 in 2007. Net los s from continuing

operations was CAD 746,568 or CAD 0.07 per s hare compared to CAD 167,802 or CAD 0.02 per share in 2007. T his includes a non-

recurring charge of CAD 340,000 for a write-off of an impa ired inves tment.

F or the full year, the company reported revenue from continuing operations increas ed by 10% in 2008 to CAD 969,128 compared to CAD

879,626 in the previous year. Net los s from continuing operations was CAD 2,311,474 or CAD 0.22 per s hare compared to CAD 632,192 or

CAD 0.11 per s hare in 2007. Net los s was CAD 3,882,843 or CAD 0.37 per s hare compared to a net los s of CAD 925,040 or CAD 0.16 per

s hare in 2007.

United Online Inc. (NasdaqGS :UNTD) United Online Inc. Decla res Quarterly Cas h Dividend,

P ayable on May 29, 2009

United Online Inc. announced that its B oard of Directors has declared a quarterly cas h dividend of $0.10 per s hare. T he dividend is payable

on May 29, 2009 to s hareholders of record on May 14, 2009.

IAC /InterActiveCorp. (NasdaqGS : IAC I);

Yahoo! Inc. (NasdaqGS :YHOO); Yahoo!

Personals

IAC In T a lks T o Acquire Y ahoo! P ers onals IAC/InterActiveCorp. reported 10% drop in firs t-quarter revenues of $332 million. IAC s tated that the company is in ta lks to acquire Y ahoo!

P ers onals in order to supplement its Match.com bus ines s . C E O of the company, B a rry Diller s a id: “W e are very interes ted. W e’d love to

have Y ahoo! P ers ona ls and I think there is s ome initia l dis cus s ions about that, whether they’re going away or not is of course enormous ly

s peculative. B ut I think, Y ahoo! has s aid that it’s not an absolute core as s et their future and it is core to us . W e’re a leader in the category.

S o, we’re very aggres s ive behind Match and any pos s ibilities for increas ing its future money in the world. ” Y ahoo! Inc is looking a t dives ting

its non-core properties and IAC is likely to be a buyer of other as sets too.

Changyou.com L imited

(NasdaqGS :CYOU)

Changyou.com Limited R eports Unaudited C onsolidated

E arnings R esults for the F irs t Quarter E nded March 31,

2009; P rovides E arnings Guidance for the S econd

Quarter of 2009

Changyou.com L imited reported unaudited consolidated earnings res ults for the firs t quarter ended March 31, 2009. F or the quarter, the

company's tota l revenues increas ed 6% quarter-over-quarter and 50% year-over-year to $61.6 million compared to total revenue of $41

million for the s ame quarter a year ago. T he increas es were mainly a ttributable to an increas e in T LB B revenues as a result of us er bas e

expans ion and enhanced us er loya lty, as well as increas ed revenues from B lade Online ('B O'). Operating profit increased 12% quarter-over-

quarter and 79% year-over-year to $37.9 million compared to operating profit of $21.2 million for the s ame quarter a year ago. Net income

increased 15% quarter-over-quarter and 120% year-over-year to $33.5 million compared to net income of $15.2 million for the s ame quarter

a year ago. Non-GAAP net income increased 13% quarter-over-quarter and 100% year-over-year to $34.4 million compared to net income of

$17.2 million for the s ame quarter a year ago. B as ic and fully diluted earnings per ADS were $0.71, compared to $0.32 in the firs t quarter of

2008. Non-GAAP fully diluted earnings per ADS were $0.72, compared to $0.36 in the firs t quarter of 2008. Income before income tax expens

Sohu.com Inc. (NasdaqGS :SOHU) S ohu.com Inc. R eports Unaudited C onsolidated E arnings

R esults for the F irs t Quarter E nded March 31, 2009 ;

P rovides E a rnings G uidance for the S econd Quarter of

2009

S ohu.com Inc. reported unaudited consolidated earnings res ults for the firs t quarter ended March 31, 2009. G AAP net income of $44.6

million or $1.15 per fully diluted share. GAAP net income was 2. 1 times that of firs t quarter 2008. G AAP net income included $33.5 million of

G AAP net income contributed by online game bus ines s with a 15% quarter-on-quarter increase or a 120% year-on-year increase. Non-GAAP

net income (i. e. , excluding s hare-based compensation expens e) of $46.9 million, or $1.20 per fully diluted share, exceeding the high end of

company guidance of $1.10 by 10 cents . Non-GAAP net income increased 87% year-on-year. Non-GAAP net income included $34.4 million

of Non-GAAP net income contributed by online game bus ines s with a 13% quarter-on-quarter increase or a 100% year-on-year increas e.

T ota l revenues were $115.7 million, representing a decreas e of 5% sequentia lly and increas e of 36% year-on-year. T he company a ls o

reported operating profit of $50,037,000, income before income tax expense of $51,160,000 and income from continuing operations of

$44,574,000 agains t operating profit of $30,531,000, income before income tax expens e of $30,740,000 and income from continuing operations of $21,555,000 for the s ame period a year ago.

Figure 13. Key Developments Source. Capital IQ

VAL UAT IO N

MMOG companies lead market-cap charts: Ten companies in our Web 2.0 universe top US$1 bil lion in market capitalization (Figure 14). Sixty-two of the 92 companies have market caps under US$100 mil lion, with 24 under US$10 mil lion. Online gaming companies dominate the top of the list.

Market C ap (USD m)

0.00.00.00.00.10.10.20.30.30.50.81.11.32.73.23.94.04.76.16.46.67.28.99.811.411.712.012.012.214.217.018.118.921.924.525.125.325.726.027.127.227.328.028.229.234.043.545.847.850.154.555.062.765.571.277.578.278.583.594.094.695.0105.0108.7136.6141.2148.7158.8158.8204.4259.1315.2330.3332.8356.7

456.3471.6489.6577.6

954.3970.2

1240.41671.81688.3

1830.31862.2

2202.12419.2

3637.73785.1

700.2

0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000

S oc ial Media V enures , Inc .Dibz International, Inc .S NM Global Holdings

China Gatew ay CorporationA s s oc iated Media Holdings Inc .

Total S port Online A SFinanc ial Media Group, Inc .

The Parent CompanyZipLocal Inc .

Wynds torm CorporationUnis erve Communications Corp.

B igs tr ing Corp.Digita lPos t Interactive, Inc .

V OIS , Inc .Betaw ave Corporation

is eemedia Inc .L iveWorld Inc .

MOKO.mobi L imitedMagnitude Information S ys tems Inc .

CornerWorld CorporationB right Things plc

S NAP Interactive, Inc .Worlds . com Inc .

L ingo Media CorporationQuepas a Corp.Y nk K orea Inc .

UOMO Media, IncAcceleriz e New Media, Inc .

S pectrumDNA , Inc .Ex tens ions , Inc .

Jumbuck Entertainment Pty Ltd.IdeaEdge, Inc .

IAS Energy , Inc .LookSmart, Ltd.

F luid Mus ic Canada, Inc .NeXplore CorporationB roadWebAs ia Inc .AQ Interactive, Inc .DXN Holdings Bhd

Dolphin Digital Media, Inc .Grav ity Co. , Ltd

Frogs ter Interactive Pictures AGNorthgate Technologies L imited

S ites earch CorporationWiz z ard S of tw are Corporation

Webzen Inc .PhotoChannel Netw orks Inc .

Ngi Group Inc .GeoS entric OyjEolith Co. Ltd.

S park Netw orks , Inc .B eyond Commerce, Inc .

JumpTV Inc .TheS treet.com, Inc .

Kaboos e Inc .HanbitS oft, Inc .Cyberplex Inc .

Digita lTow n, Inc .Moggle, Inc

GameOn Co Ltd.Tree.Com, Inc .

A ctoz S oft Co. , Ltd.Openw ave S ys tems Inc .

Y edangOnline Corp.OAO RBC Information S ys tems

CDC Corp.DADA S pA

Gamania Digital Enterta inment Co. ,GungHo Online Enterta inment, Inc .

X ING AGThe9 L imited

S K Communications Co. , Ltd.S hutterf ly , Inc .G igaMedia Ltd.

NetDragon WebS oft, Inc .NEOWIZ Games Corporation

United Online Inc .K ings oft Co. Ltd.

Chines e Gamer InternationalMix i, Inc .

V alueClick Inc .Perfect World Co. , Ltd.

Gree, Inc .Changyou.com L imited

Open Text Corp.Modern Times Group Mtg A BGiant Interactive Group, Inc .

S ohu.com Inc .IAC/InterA ctiveCorp.

S handa Interactive Enterta inmentNeteas e.com Inc .

Tencent Holdings Ltd.

Figure 14. Market Cap Ranking Source. Capital IQ

TEV/Revenue (LTM) averages 4.7x: The overall average TEV/Revenue (LTM) multiple for our group is 4.7x (up from 4.2x last week) (Figure 15). However, this is skewed by Gree (3633-TSE) at 39.8x and Beyond Commerce Inc. (BYOC-OTCBB) at 31.9x. The median is only 1.8x. Note that we exclude multiples greater than 50x. Thirty companies have multiples under 1.5x

TEV/LTM R evenue (x)

0.00.10.10.20.20.20.30.40.50.50.50.60.60.80.90.90.91.01.11.11.11.11.21.21.21.31.41.41.61.81.91.92.0

2.42.52.52.52.53.13.13.23.43.53.54.34.4

4.64.85.05.05.46.06.9

8.18.3

11.1

16.7

19.4

26.6

29.831.9

39.8

A verage, 4.7

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

OAO RBC Information Systems

Openwave Systems Inc.

Uniserve Communications Corp.

Northgate Technologies Limited

The Parent Company

Shanda Interactive Entertainment Ltd.

LiveWorld Inc.

Tree.Com, Inc.

IAC/InterActiveCorp.

CDC Corp.

GameOn Co Ltd.

ZipLocal Inc.

DXN Holdings Bhd

Ynk Korea Inc.

DADA SpA

Actoz Soft Co., Ltd.

Jumbuck Entertainment Pty Ltd.

Spark Networks, Inc.

SNM Global Holdings

HanbitSoft, Inc.

Kaboose Inc.

Shutterfly, Inc.

United Online Inc.

GungHo Online Entertainment, Inc.

Gamania Digital Entertainment Co., Ltd.

ValueClick Inc.

GigaMedia Ltd.

Modern Times Group Mtg AB

Cyberplex Inc.

iseemedia Inc.

SNAP Interactive, Inc.

SK Communications Co., Ltd.

YedangOnline Corp.

Open Text Corp.

NetDragon WebSoft, Inc.

PhotoChannel Networks Inc.

Fluid Music Canada, Inc.

Eolith Co. Ltd.

Lingo Media Corporation

NEOWIZ Games Corporation

XING AG

Kingsoft Co. Ltd.

MOKO.mobi Limited

JumpTV Inc.


Sohu.com Inc.

Total Sport Online AS

Wizzard Software Corporation

Frogster Interactive Pictures AG

Mixi, Inc.

DigitalPost Interactive, Inc.

CornerWorld Corporation

GeoSentric Oyj

Associated Media Holdings Inc.


Chinese Gamer International


UOMO Media, Inc

Bright Things plc

Bigstring Corp.

Beyond Commerce, Inc.

Gree, Inc.

Figure 15. TEV/Revenue Ranking Source. Capital IQ

TEV/Revenue (LTM) by country/exchange: We have also calculated multiples based on where the companies are listed or domiciled. Figure 16 shows the average TEV/Revenue multiples by stock exchange. The OTCBB has the largest number of companies (21), trading at an average multiple of 12.4x (up from 6.0x last week). On a geographic basis, the United States has the most companies (40), trading at an average of 4.9x revenue (sl ightly up from 4.8x last week) (Figure 17). Eleven of the companies are Canadian (average 3.6x revenue).

Average TEV/LTM Revenue - By Exchange

0.40.60.91.2

1.41.61.81.91.92.22.22.94.14.66.26.9

7.5

12.4

15.1

26.6

0.0

5.0

10.0

15.0

20.0

25.0

30.0

AIM

TS

E

OT

CB

B

SE

HK

HLS

E

GT

SM

OT

CN

O

XT

RA

AM

EX

AS

X

TS

X

Nas

da

qG

S

OT

CP

K

KO

SE

TS

XV

OM

OS

E

CM

KLS

E

Nas

daq

GM

1 5 21 3 1 2 1 2 2 2 4 14 9 7 5 1 1 1 1 5

(x)

# Companies

Average TEV/LTM Revenue - By Country

0.6 0.50.91.41.82.2

3.64.14.64.64.95.9

6.9

11.7

26.6

0.0

5.0

10.0

15.0

20.0

25.0

30.0

Unite

d

Kin

gdom

Japan

Fin

land

Chin

a

Unite

d

Sta

tes

Norw

ay

Taiw

an

Germ

any

Canada

Austr

alia

South

Kore

a

Sw

eden

Italy

Mala

ysia

Hong

Kong

1 6 1 10 40 1 3 2 11 2 9 1 1 1 1

(x)

# Companies

Figures 16 & 17. TEV/Revenue Ranking (Exchange, Country) Source. Capital IQ

TEV/EBITDA (LTM) averages 9.7x: The average multiple for the 34 companies with positive EBITDA (and multiples under 100x) is 9.7x LTM EBITDA (up from 9.0x last week), led by Tencent Holdings Ltd.’s (700-SEHK) 34.1x multiple (Figure 18). Fourteen of the companies have EBITDA multiples under 7x. The median multiple is 8.8x (vs. 7.6x last week).

TEV/LTM EB ITDA (x)

0.5 1.2 2.0 2.54.4 4.4 4.5 5.1 5.3 5.5 5.6 6.1 6.8 7.3

8.5 8.5 8.7 8.8 8.9 9.3 9.9 10.3 10.5 10.5 11.2 11.713.3

14.2

18.720.5

22.0

29.5

34.1

Average, 9.7

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0



GameOn Co Ltd.



DXN Holdings Bhd


United Online Inc.

DADA SpA


GigaMedia Ltd.


GungHo Online Entertainment, Inc.

ValueClick Inc.


Shutterfly, Inc.


Kingsoft Co. Ltd.

YedangOnline Corp.

Open Text Corp.

XING AG


Sohu.com Inc.

CDC Corp.

Kaboose Inc.


Mixi, Inc.


Cyberplex Inc.

SK Communications Co., Ltd.


Uniserve Communications Corp.


Figure 18. TEV/EBITDA Ranking Source. Capital IQ

TEV/EBITDA (LTM) by country/exchange: Figure 19 shows the average TEV/EBITDA multiples by stock exchange. The OTCBB has the largest number of companies (21), trading at an average multiple of 6.1x. On a geographic basis, the United States has the most companies (40), trading at an average of 7.0x EBITDA (Figure 20). Eleven of the companies are Canadian (average 17.2x EBITDA).

Average TEV/LTM EBITDA - By Exchange

0.21.22.54.44.45.36.16.87.68.28.79.911.4

15.015.216.1

29.5

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

TS

XV

SE

HK

GT

SM

TS

X

KO

SE

XT

RA

OM

NasdaqG

S

TS

E

OS

E

OT

CB

B

CM

KLS

E

AM

EX

AS

X

BS

E

RT

S

5 3 2 4 7 2 1 14 5 1 21 1 1 2 2 1 1

(x)

# Companies

Average TEV/LTM EBITDA - By Country

2.5 1.2

4.45.3

7.07.48.79.910.511.412.0

12.2

17.2

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

Canada

Chin

a

Taiw

an

South

Kore

a

Hong

Kong

Germ

any

Sw

eden

Japan

Unite

d

Sta

tes

Italy

Mala

ysia

Austr

alia

India

11 10 3 9 1 2 1 6 40 1 1 2 1

(x)

# Companies

Figures 19 & 20. TEV/EBITDA Ranking (Exchange, Country) Source. Capital IQ

P/E (LTM) averages 17.0x: The average multiple for the 33 companies with positive earnings (and multiples under 100x) is 17.0x LTM EPS (from 16.4x last week), led by Shutterfly Inc’s (SFLY-NASDAQ) 74.2x multiple (Figure 21). Thirteen of the companies have P/E multiples under 10x. The median is just 12.7x.

P/E LTM (x)

1.7 1.8 1.8 2.5 3.0 3.3 4.9 5.17.4 8.7 9.5 9.7 10.6 11.8 11.8 12.7 13.1 13.6 14.2 14.3 15.1 15.8 16.8

20.2 21.223.7

29.5

34.0 34.5

45.6

68.9

74.2

A verage, 17.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

Perfect World Co., Ltd.


Giant Interactive Group, Inc.

Netease.com Inc.


Worlds.com Inc.

DXN Holdings Bhd



DADA SpA


GameOn Co Ltd.

GigaMedia Ltd.

YedangOnline Corp.


Kingsoft Co. Ltd.


Ngi Group Inc.

Sohu.com Inc.



Cyberplex Inc.



XING AG



Mixi, Inc.

Open Text Corp.


TheStreet.com, Inc.

Shutterfly, Inc.

Figure 21. P/E Ranking Source. Capital IQ

P/E (LTM) by country/exchange: Figure 22 shows the average P/E multiples by stock exchange. The OTCBB has the largest number of companies (21), trading at an average multiple of 6.4x. On a geographic basis, the United States has the most companies (40), trading at an average of 31.0x earnings (Figure 23). Eleven of the companies are Canadian (average 25.1x EPS).

Average P/E - By Exchange

4.95.16.47.48.713.115.8

16.817.319.1

21.223.324.8

68.9

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

NasdaqG

M

GT

SM

SE

HK

XT

RA

TS

E

NasdaqG

S

KO

SE

TS

X

AM

EX

CM

AS

X

OT

CB

B

OM

KLS

E

5 2 3 2 5 14 7 4 2 1 2 21 1 1

(x)

# Companies

Average P/E - By Country

4.95.1

7.48.710.8

16.819.1

20.121.225.1

31.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

Un

ited

Sta

tes

Can

ada

Germ

any

Taiw

an

Ja

pan

Sou

th

Ko

rea

Chin

a

Italy

Austr

alia

Sw

ede

n

Mala

ysia

40 11 2 3 6 9 10 1 2 1 1

(x)

# Companies

Figures 22 & 23. P/E Ranking (Exchange, Country) Source. Capital IQ

UP CO MI NG EVE NTS

Earnings Calendar

Company Date & T ime Quarter Conf Call Details

T heS treet. com, Inc. (Nas daqGM: TS C M) T uesday , May 05, 2009 4: 30 PM (E DT ) Q 1 2009 NA

V alueClick Inc . (N asdaqG S : V C LK ) T uesday , May 05, 2009 4: 30 PM (E DT ) Q 1 2009 818-575-4677

United Online Inc . (N asdaqG S : UNTD ) T uesday , May 05, 2009 2: 00 PM (PDT ) Q 1 2009 877-681-3374

Open T ext C orp. (Nas daqG S : OTE X) W ednes day, May 06, 2009 5:00: 00 PM (E DT ) Q 3 2009 800-733-7571

P hotoC hannel Networks I nc . (TS XV : PN) W ednes day, May 13, 2009 4:30 PM (E DT ) Q 2 2009 888-300-8196

Figure 24. Earnings Calendar Source. Company reports

Comparable Company Analys is > Web 2 .0

P rice Performance

C ompany Name Cur rency Tic ker Exchange USD Market C ap ($m) Current Pric e 1 Wk 1 Mth 3 Mth 6 Mth 1 Yr 52 Week

Acce le rize New Media, Inc. USD ACL Z OTC BB 12.0 0.4 4 -10. 2% 25.7% 25 .7% 10 .0% -38 .9% -43. 6%

Actoz S of t C o., L td. KR W A052790 KO S E 95.0 14,150.0 0 -4.1% 29.2% 25 .8% 65 .1% 75.8% -11. 6%

AQ Inte ractive , Inc. J PY 3838 T S E 25.7 46,950.0 0 -0.3% 25.2% 34 .1% -0.9% -79 .2% -80. 0%As socia ted Media Holdings Inc. USD A SMH OTC PK 0 .1 0.0 0 0.0% 7.1% -70.0% -81.3% 36.4% -97. 0%

B igstring Corp. USD B SGC OTC BB 1 .1 0.0 2 53.3% 31.3% 23 .5% -16.0% -86 .9% -89. 5%

Be tawave Corpora tion USD B W AV OTC BB 3 .2 0.1 1 0.9% -30. 6% -44.5% -28.4% -68 .3% -73. 6%

Beyond Commerce, Inc. USD B YOC OTC BB 55.0 1.3 3 -10. 7% -4.3% 51 .1% -31.8% -45 .7% -59. 7%Bright T hings plc GBP A IM:B GT AI M 6 .6 0.0 2 36.4% 70.5% 77 .2% 56 .3% -25 .0% -35. 7%

Broa dWebAs ia Inc. USD B W BA OTC PK 25.3 0.3 0 -33. 8% -33. 8% -70.5% -77.9% -86 .8% -89. 7%

C DC C orp. USD CH IN .A Nasda qGS 141.2 1.3 2 11.9% 13.8% 80 .8% 3 .1% -61 .1% -65. 3%

C ha ngyou. com Limited USD C YOU Nasda qGS 1,6 71. 8 32.6 2 21.7% NM NM NM NM -2.6%C hina Gatewa y C orpora tion USD CGWY OTC BB 0 .0 0.0 0 100. 0% 100.0% 0 .0% -86.7% -96 .7% -95. 6%

C hine se G amer International TW D G TS M:3083 GT SM 577.6 224.5 0 11.7% 25.1% 148.6% 179.9% 99.6% -4.9%

C ornerW orld C orporation USD CW R L OTC BB 6 .4 0.1 0 -16. 7% -28. 6% -75.6% -50.0% -80 .4% -87. 5%

C yberplex Inc. C AD T S X:CX T S X 78.2 1.7 2 39.8% 79.2% 341.0% 309.5% 102. 4% 13.9%

DADA S pA EUR CM:DA CM 148.7 6.8 8 17.6% 46.3% 22 .8% -10.9% -52 .3% -57. 5%DXN Holdings B hd MYR DXN KL S E 26.0 0.4 0 23.4% 31.7% 11 .3% 12 .9% -22 .5% -28. 8%

D ibz Inte rnational, Inc. USD DIBZ OTC PK 0 .0 0.0 0 -90. 0% -90. 0% -90.0% -98.0% -98 .0% -98. 0%

D igitalPost Inte ra ctive , Inc. USD DGLP OTC BB 1 .3 0.0 2 -10. 5% 70.0% -15.0% -51.4% -91 .1% -93. 9%

D igitalT own, Inc. USD DGTW OTC BB 78.5 2.9 0 45.0% 16.0% -3 .3% 16 .0% -1. 7% -52. 5%Dolphin Digital Media, Inc. USD DPDM OTC BB 27.1 0.5 5 3.8% -8.3% -19.1% -38.9% NM -51. 3%

E olith C o. L td. KR W A041060 KO S E 50.1 885.0 0 33.1% 71.8% 71 .8% 63 .9% -11 .5% -15. 3%

E xtens ions , Inc. USD E XT I OT C PK 14.2 0.1 5 -25. 0% -25. 0% 185.7% 50 .0% 0.0% -85. 1%

F inancia l Media G roup, Inc. USD FNGP OTC BB 0 .2 0.0 0 -18. 9% -57. 1% -85.0% -99.3% -99 .3% -99. 7%F luid Mus ic Ca nada, Inc. C AD T S X:FMN T S X 24.5 0.5 5 37.5% -8.3% 37 .5% 37 .5% NM -73. 0%

F rogste r Interactive P icture s AG EUR F R G XT R A 27.3 8.7 0 -4.0% 27.8% 76 .1% 115.9% 102. 3% -12. 1%

Gama nia Digital E ntertainment C o., L td. TW D 6180 GT SM 158.8 34.5 5 7.5% 3.8% 60 .3% 143.3% 6.0% -6.5%

GameOn C o L td. J PY 3812 T S E 94.0 96,600.0 0 5.0% 7.3% -20.5% 46 .4% -13 .8% -40. 9%GeoS entr ic O yj E UR G EO1V HLS E 47.8 0.0 4 0.0% 0.0% 33 .3% 0 .0% -42 .9% -42. 9%

G iant Intera ctive G roup, Inc. USD G A NYS E 1,8 62. 2 8.2 4 -3.1% 13.3% 44 .8% 29 .2% -47 .1% -52. 1%

G igaMedia Ltd. USD G IGM Nasda qGS 332.8 6.1 6 -8.7% 7.7% -7 .2% 1 .1% -62 .2% -69. 0%

G ravity C o., L td USD G RV Y Nasda qGM 27.2 0.9 8 8.9% 16.7% 36 .5% 22 .5% -34 .7% -51. 0%G ree, Inc. J PY T S E :3632 T S E 1,2 40. 4 5,520.0 0 -2.3% -1.3% -8 .9% NM NM -12. 4%

GungHo O nline E ntertainment, Inc. J PY 3765 OS E 158.8 137,700.0 0 -0.9% 8.5% 29 .2% 44 .0% -55 .7% -68. 3%

HanbitS oft, Inc. KR W A047080 KO S E 77.5 4,485.0 0 -0.2% 38.9% 43 .1% 54 .1% -0. 3% -36. 0%

IAC /InterActiveC orp. USD I ACI Nasda qGS 2,4 19. 2 16.0 3 0.7% 0.8% 8 .8% -6.5% -62 .8% -68. 3%IAS E nergy, Inc. USD I AS C .A OTC BB 18.9 0.2 7 8.0% 575.0% 980.0% 217.6% 8.0% -22. 9%

IdeaE dge, Inc. USD O TC BB :IDAE OTC BB 18.1 0.4 3 -3.4% 11.8% 6 .2% -77.0% -41 .8% -85. 0%

is eemedia Inc. C AD I E E T S XV 3 .9 0.0 9 -10. 0% -10. 0% 12 .5% -30.8% -66 .7% -74. 3%

J umbuck E ntertainment P ty Ltd. AUD A S X:JMB AS X 17.0 0.4 7 0.0% -7.0% -3 .1% 9 .4% -24 .4% -29. 0%J umpT V Inc. C AD T S X:J T V T S X 62.7 0.6 5 18.2% 12.1% 47 .7% 14 .0% -15 .6% -49. 2%

Ka boose Inc. C AD T S X:KAB T S X 71.2 0.6 0 1.7% 5.3% 39 .5% 17 .6% -40 .0% -52. 0%

K ingsoft Co. Ltd. HKD 3888 S E HK 489.6 3.5 3 -7.1% 9.3% 29 .3% 76 .5% 1.4% -18. 1%

Lingo Media Corporation C AD T S XV :LM T S XV 9 .8 0.9 0 0.0% 8.4% -14.3% -24.4% -50 .0% -55. 0%LiveWorld Inc. USD L VWD OTC PK 4 .0 0.1 3 85.7% 0.0% 160.0% 0 .0% -50 .0% -68. 3%

LookSmart, Ltd. USD L OOK Nasda qGM 21.9 1.2 8 -5.3% 2.6% -5 .0% -26.3% -71 .0% -73. 3%

Magnitude Information S ys tems Inc. USD MAGY OTC BB 6 .1 0.0 1 -6.7% -6.7% -46.2% 16 .7% -30 .0% -53. 3%

Mixi, Inc. J PY 2121 T S E 700.2 453,000.0 0 -6.2% 22.4% -11.2% -21.4% -46 .0% -52. 6%Mode rn Times G roup Mtg AB S E K MTG B OM 1,830. 3 220.0 0 3.8% 37.9% 59 .7% 12 .2% -50 .3% -51. 6%

Moggle , Inc USD MMOG OTC BB 83.5 2.3 0 15.0% 15.0% 53 .3% NM NM 0.0%

MOKO.mobi L imited AUD MKB AS X 4 .7 0.0 7 -12. 9% -18. 7% 85 .0% 54 .2% 80.5% -26. 0%

NEOW IZ Games C orpora tion KR W A095660 KO S E 456.3 60,100.0 0 1.0% 30.7% 159.1% 367.7% 76.8% -18. 1%NetDragon W ebS oft, Inc. HKD 777 S E HK 356.7 5.2 3 18.3% 26.9% 92 .3% 56 .1% -57 .5% -61. 5%

Nete ase.com I nc. USD NT E S Nasda qGS 3,7 85. 1 30.7 6 1.7% 12.8% 61 .1% 39 .5% 32.3% -2.3%

NeXplore Corpora tion USD NXPC OTC PK 25.1 0.4 5 -40. 0% -26. 2% -25.0% -47.1% NM -69. 0%

Ngi G roup Inc. J PY 2497 T S E 45.8 36,800.0 0 1.4% 75.2% -3 .9% -48.1% -71 .3% -78. 0%

Northgate Te chnologies L imited INR 590057 BS E 28.0 39.8 0 -12. 7% 27.2% 1 .1% -49.8% -90 .5% -91. 5%Open T ext Corp. USD O TE X Nasda qGS 1,6 88. 3 32.5 3 -3.0% -3.1% -6 .7% 12 .6% -9. 6% -16. 8%

Openwave S ys tems Inc. USD O PWV Nasda qGS 105.0 1.2 6 5.9% 10.5% 55 .6% 55 .6% -37 .3% -42. 2%

Pe rfect W orld C o. , Ltd. USD P W RD Nasda qGS 970.2 18.3 9 9.6% 21.9% 26 .9% -0.3% -40 .4% -45. 1%

PhotoChannel Network s Inc. C AD T S XV :PN T S XV 43.5 1.5 0 -3.2% -2.6% -9 .1% -33.3% -59 .5% -63. 9%Quepa sa C orp. USD Q PSA Nasda qCM 11.4 0.9 0 3.4% -9.1% -52.6% -58.7% -67 .3% -74. 0%

OAO RB C Information S ys tems USD R BC I R T S 136.6 0.9 9 51.5% 159.2% 217.7% -34.3% -88 .3% -89. 2%

S handa Interactive E ntertainment L td. USD S NDA Nasda qGS 3,6 37. 7 52.4 3 10.8% 22.3% 75 .9% 105.9% 46.5% -2.7%

S hutte rf ly, Inc. USD S F LY Nasda qGS 330.3 13.1 2 29.4% 31.9% 100.0% 74 .2% 4.7% -13. 0%S K C ommunications Co., Ltd. KR W A066270 KO S E 315.2 9,720.0 0 -2.8% 29.4% 31 .4% 91 .3% -35 .2% -50. 7%

SNAP Inte ra ctive , Inc. USD S T V I OT C BB 7 .2 0.6 7 3.1% -10. 7% -32.3% 48 .9% -15 .2% -38. 0%

SNM G lobal Holdings USD S NMN OTC PK 0 .0 0.0 0 -50. 0% 1400. 0% 200.0% -98.3% -99 .9% -99. 9%

S ocia l Media Venures , Inc. USD S MVI OT C PK 0 .0 0.0 1 -93. 3% -99. 2% -99.2% -99.7% NM -99. 8%S ohu. com Inc. USD S OHU Nasda qGS 2,2 02. 1 57.5 5 13.9% 27.9% 45 .6% 4 .9% -24 .1% -37. 1%

S ite s earch C orporation USD S T PC OTC BB 28.2 3.5 0 -30. 0% NM NM NM NM -30. 0%

S park Networks , Inc. USD L OV AMEX 54.5 2.6 5 17.8% 15.2% 15 .7% -11.4% -39 .8% -43. 0%

S pectrumDNA, Inc. USD S PXA OTC BB 12.2 0.2 5 25.0% 66.7% 150.0% 4 .2% NM -58. 3%T encent Holdings L td. HKD 700 S E HK 16, 034 .1 69.0 0 6.6% 20.2% 42 .6% 25 .5% 20.6% -4.2%

T he Parent C ompany USD K IDS .Q OTC PK 0 .3 0.0 1 4.0% -31. 6% -50.0% -98.5% -99 .4% -99. 6%

T he9 L imited USD NC TY Nasda qGS 259.1 9.6 6 4.9% -30. 6% -35.4% -28.3% -55 .8% -66. 1%

T heS treet.com, Inc. USD T S CM Nasda qGM 65.5 2.1 4 -8.9% 6.5% -25.4% -41.4% -71 .4% -73. 6%T otal S port Online A S NOK TOS O OTC NO 0 .1 0.0 3 0.0% -25. 0% -25.0% -40.0% -70 .0% -70. 0%

T ree.C om, Inc. USD T R E E Nasda qGM 94.6 9.4 8 62.3% 79.9% 137.0% 300.0% NM -14. 6%

Unis erve C ommunications Corp. C AD T S XV :US S T S XV 0 .8 0.0 4 -20. 0% -20. 0% 0 .0% -50.0% -88 .6% -91. 1%

United Online Inc. USD UNTD Nasda qGS 471.6 5.6 8 19.6% 14.7% -1 .9% -16.5% -49 .8% -54. 6%UOMO Media , Inc USD UOMO OTC BB 12.0 0.1 4 133. 3% 40.0% 75 .0% -12.5% -68 .2% -82. 5%

Va lueC lick Inc. USD V CL K Nasda qGS 954.3 11.0 0 13.5% 15.3% 72 .7% 63 .7% -42 .9% -47. 6%

VO IS , Inc. USD V OIS OTC BB 2 .7 0.3 2 6.7% 39.1% -57.3% -57.3% NM -94. 3%

W ebzen Inc. USD W ZEN Nasda qGM 34.0 2.8 7 3.2% 42.1% 108.9% 184.2% 5.5% -35. 5%W izza rd S of twa re Corpora tion USD W ZE AMEX 29.2 0.6 2 12.5% 37.6% -15.2% -34.8% -70 .5% -73. 7%

W orlds .com Inc. USD WDDD OTC BB 8 .9 0.1 7 0.0% -10. 5% -22.7% -29.2% -55 .3% -57. 5%

W ynds torm C orporation USD W YND OTC BB 0 .5 0.0 3 -66. 7% -66. 7% -76.0% -85.0% -92 .5% -96. 5%

XING AG EUR O 1BC XT R A 204.4 29.9 0 0.4% 2.0% 0 .5% 24 .0% -23 .5% -35. 9%YedangOnline Corp. KR W A052770 KO S E 108.7 8,810.0 0 -10. 4% 5.4% 21 .0% 46 .8% -25 .7% -29. 8%

Ynk Korea Inc. KR W A023770 KO S E 11.7 6,030.0 0 26.9% 62.1% 56 .2% 2 .7% -57 .2% -60. 8%

ZipLocal Inc. C AD T S XV :ZIP T S XV 0 .3 0.0 1 0.0% -66. 7% -75.0% -50.0% -96 .4% -97. 1%

H igh 133. 3% 1400. 0% 980.0% 367.7% 102. 4% 13.9%

Low -93. 3% -99. 2% -99.2% -99.7% -99 .9% -99. 9%

Average 493.4 4.8% 34.0% 38.7% 14.8% -35.2% -53.9%

Median 1.2% 12.5% 23 .1% 1 .9% -45 .7% -53. 9%

Figure 25. Price Performance Source. Capital IQ

Comparable Company Analys is > Web 2.0Valuation Multiples

Company Name S ector Country

Primary

E xchange Ticker

USD Market

Cap ($m)

TEV/LTM

R evenue

TEV/ NTM

Revenue

TEV/LTM

EB ITDA

TEV/NTM

EB ITDA P/LTM EPS P/NTM EPS P/TangBV

Accelerize New Media , Inc. Direct Marketing United S tates OTCB B ACLZ 12.0 4. 3x - - - - - -

Actoz S oft C o. , L td. G aming S outh K orea K OS E A052790 95.0 0. 9x - 4.5x - 15.1x - 1.7x

AQ Interactive, Inc. G aming J apan T S E 3838 25.7 - - - - - - 0.4x

As sociated Media Holdings Inc. Mobile United S tates OTCP K AS MH 0.1 8. 1x - - - - - -

B igs tring C orp. Ins tant Mes saging United S tates OTCB B B S GC 1.1 29.8x - - - - - -

B etawave C orporation Media United S tates OTCB B BWAV 3.2 - - - - - - 0.3x

B eyond Commerce, Inc. S ocia l Networking United S tates OTCB B B YOC 55.0 31.9x - - - - - -

B right T hings plc S ocia l Networking United K ingdom AIM AIM:B GT 6.6 26.6x - - - - - -

B roadW ebAs ia Inc. S ocia l Networking United S tates OTCP K BWBA 25.3 - - - - - - -

CDC Corp. G aming Hong K ong NasdaqGS CHIN.A 141.2 0. 5x 0.5x 10.5x 7.1x - 30.0x -

C hangyou.com L imited Gaming China NasdaqGS CYOU 1,671.8 8. 3x - 14.2x - 14.3x - -

C hina G ateway C orporation Mobile United S tates OTCB B CGWY 0.0 0. 0x - - - - - -

C hinese G amer International G aming T aiwan GT S M GT S M:3083 577.6 11.1x - 22.0x - 29.5x - 9.9x

CornerW orld C orporation Content United S tates OTCB B CWR L 6.4 6. 0x - - - - - -

C yberplex Inc. Advertis ing C anada T S X T S X:C X 78.2 1. 6x 1.1x 18.7x 12.1x 15.8x 15.6x 16.2x

DADA S pA S ocia l Networking Ita ly CM CM:DA 148.7 0. 9x - 5.3x - 8.7x - -

DXN Holdings B hd S ocia l Networking Malays ia K LS E DXN 26.0 0. 6x - 4.4x - 4.9x - 0.5x

Dibz International, Inc. S NS Apps United S tates OTCP K DIB Z 0.0 - - - - - - -

Digita lP os t Interactive, Inc. C ontent United S tates OTCB B DG LP 1.3 5. 4x - - - - - -

Digita lT own, Inc. S ocia l Networking United S tates OTCB B DGTW 78.5 - - - - - - -

Dolphin Digita l Media , Inc. S ocia l Networking United S tates OTCB B DPDM 27.1 - - - - - - -

E olith C o. Ltd. G aming S outh K orea K OS E A041060 50.1 2. 5x - - - - - -

E xtens ions , Inc. C ontent United S tates OTCP K E XT I 14.2 - - - - - - -

F inancia l Media G roup, Inc. Direct Marketing United S tates OTCB B FNG P 0.2 - - - - - - -

F luid Mus ic C anada, Inc. Media United S tates T S X T S X: FMN 24.5 2. 5x 1.8x - - - - 1.9x

F rogs ter Interactive P ictures AG Gaming Germany XT R A FR G 27.3 5. 0x - - - - - 2.5x

G amania Digita l E nterta inment C o. , L td. G aming T aiwan GT S M 6180 158.8 1. 2x - 8.5x - 20.2x - 2.2x

G ameOn Co L td. G aming J apan T S E 3812 94.0 0. 5x - 2.0x - 9.7x - 1.3x

GeoS entric Oyj Mobile F inland HLS E GE O1V 47.8 6. 9x - - - - - 4.9x

G iant Interactive G roup, Inc. G aming China NY S E GA 1,862.2 - - - - 1.8x 13.5x 0.4x

G igaMedia Ltd. G aming T aiwan NasdaqGS G IGM 332.8 1. 4x 1.4x 5.6x 5.7x 10.6x 10.9x 3.0x

G ravity C o. , L td Gaming S outh K orea NasdaqGM GR V Y 27.2 - - - - - - -

G ree, Inc. S ocia l Networking J apan T S E T S E :3632 1,240.4 39.8x - - - - - 19.4x

GungHo Online E nterta inment, Inc. Media J apan OS E 3765 158.8 1. 2x - 6.8x - - - -

HanbitS oft, Inc. G aming S outh K orea K OS E A047080 77.5 1. 1x - - - - - 2.4x

IAC /InterActiveCorp. Media United S tates NasdaqGS IAC I 2,419.2 0. 5x 0.5x 10.3x 4.8x 16.8x 36.2x 1.1x

IAS E nergy, Inc. V ideo C anada OTCB B IAS C .A 18.9 - - - - - - -

IdeaE dge, Inc. S ocia l Networking United S tates OTCB B OTCB B : IDAE 18.1 - - - - - - 13.2x

iseemedia Inc. C ontent C anada T S XV IE E 3.9 1. 8x - - - - - 2.1x

J umbuck E nterta inment P ty Ltd. S ocia l Networking Aus tra lia AS X AS X:JMB 17.0 0. 9x - 2.5x - 7.4x - 1.9x

J umpTV Inc. V ideo C anada T S X T S X:J TV 62.7 3. 5x - - - - - 3.3x

K aboose Inc. C ontent C anada T S X T S X:K AB 71.2 1. 1x 1.0x 11.2x 6.3x - - -

K ings oft C o. Ltd. G aming China S E HK 3888 489.6 3. 4x - 8.8x - 12.7x - 3.0x

L ingo Media C orporation Learning C anada T S XV T S XV :LM 9.8 3. 1x - - - - - -

L iveW orld Inc. S ocia l Networking United S tates OTCP K LVWD 4.0 0. 3x - - - - - 1.8x

LookS mart, L td. Direct Marketing United S tates NasdaqGM LOOK 21.9 - - - - - - 0.8x

Magnitude Information S ys tems Inc. S ocia l Networking United S tates OTCB B MAGY 6.1 - - - - - - -

Mixi, Inc. S ocia l Networking J apan T S E 2121 700.2 5. 0x - 13.3x - 34.0x - 5.5x

Modern T imes G roup Mtg AB Media S weden OM MTG B 1,830.3 1. 4x 1.3x 8.7x 10.6x 5.1x 12.9x -

Moggle, Inc G aming United S tates OTCB B MMOG 83.5 - - - - - - -

MOKO.mobi L imited S ocia l Networking Aus tra lia AS X MK B 4.7 3. 5x - - - - - 3.8x

NE OW IZ G ames C orporation Gaming S outh K orea K OS E A095660 456.3 3. 1x - 11.7x - 23.7x - 14.0x

NetDragon W ebS oft, Inc. G aming China S E HK 777 356.7 2. 5x - 5.5x - 11.8x - 1.9x

Netease.com Inc. G aming China NasdaqGS NT E S 3,785.1 - - - - 2.5x 15.3x 0.7x

NeXplore C orporation Content United S tates OTCP K NXP C 25.1 - - - - - - -

Ngi G roup Inc. Media J apan T S E 2497 45.8 - - - - 13.6x - 0.7x

Northgate T echnologies L imited Direct Marketing India B S E 590057 28.0 0. 2x - 1.2x - 1.8x - -

Open T ext C orp. C ollaboration C anada NasdaqGS OTE X 1,688.3 2. 4x 2.1x 9.3x 8.1x 34.5x 13.6x -

Openwave S ys tems Inc. Mobile United S tates NasdaqGS OPWV 105.0 0. 1x 0.1x - 1.5x - 34.1x 1.4x

P erfect W orld C o. , L td. G aming China NasdaqGS PWR D 970.2 - - - - 1.7x 9.0x 0.5x

P hotoChannel Networks Inc. Digita l Imaging C anada T S XV T S XV :P N 43.5 2. 5x 1.7x - 5.4x - 23.1x 9.2x

Quepasa C orp. S ocia l Networking United S tates NasdaqCM QP S A 11.4 - - - - - - 8.5x

OAO R B C Information S ys tems Media R us s ia R T S R B C I 136.6 0. 0x - 0.2x - - - -

S handa Interactive E nterta inment Ltd. G aming China NasdaqGS S NDA 3,637.7 0. 2x 1.2x 0.5x 2.7x 3.0x 16.8x 1.4x

S hutterfly, Inc. Digita l Imaging United S tates NasdaqGS S F LY 330.3 1. 1x 1.1x 8.5x 7.0x 74.2x - 1.9x

S K C ommunications C o. , L td. S earch S outh K orea K OS E A066270 315.2 1. 9x - 20.5x - - - -

S NAP Interactive, Inc. Dating United S tates OTCB B S T V I 7.2 1. 9x - 6.1x - 9.5x - 4.7x

S NM G loba l Holdings Media United S tates OTCP K S NMN 0.0 1. 1x - - - - - -

S ocia l Media V enures , Inc. S ocia l Networking United S tates OTCP K S MV I 0.0 0. 0x - - - - - -

S ohu.com Inc. G aming China NasdaqGS S OHU 2,202.1 4. 4x 3.8x 10.5x 8.7x 14.2x 12.9x 6.8x

S ites earch C orpora tion S ocia l Networking United S tates OTCB B S T P C 28.2 - - - - - - 40.1x

S park Networks , Inc. S ocia l Networking United S tates AME X LOV 54.5 1. 0x - 4.4x - 13.1x - -

S pectrumDNA, Inc. Media United S tates OTCB B S P XA 12.2 - - - - - - 18.4x

T encent Holdings Ltd. P orta l C hina S E HK 700 16,034.1 16.7x - 34.1x - 45.6x - 18.6x

T he P arent C ompany Media United S tates OTCP K K IDS .Q 0.3 0. 2x - - - - - -

T he9 L imited Gaming China NasdaqGS NC T Y 259.1 - - - - 0.8x 10.5x 0.1x

T heS treet.com, Inc. Media United S tates NasdaqGM T S CM 65.5 - - - - 68.9x - 0.7x

T otal S port Online AS Media Norway OTCNO TOS O 0.1 4. 6x - - - - - -

T ree.C om, Inc. P orta l United S tates NasdaqGM TR E E 94.6 0. 4x 0.4x - - - - 1.4x

Uniserve C ommunications C orp. S ocia l Networking C anada T S XV T S XV :US S 0.8 0. 1x - 29.5x - - - -

United Online Inc. Media United S tates NasdaqGS UNTD 471.6 1. 2x 0.8x 5.1x 3.3x - 7.9x -

UOMO Media , Inc Media C anada OTCB B UOMO 12.0 19.4x - - - - - -

V alueC lick Inc. Media United S tates NasdaqGS V C LK 954.3 1. 3x 1.5x 7.3x 6.4x - 18.8x 9.3x

VOIS , Inc. S ocia l Networking United S tates OTCB B VO IS 2.7 - - - - - - 6.0x

W ebzen Inc. G aming S outh K orea NasdaqGM WZE N 34.0 - - - - - - 0.0x

W izzard S oftware C orporation P odcas ting United S tates AME X W ZE 29.2 4. 8x - - - - - -

W orlds .com Inc. C ontent United S tates OTCB B W DDD 8.9 - - - - 3.3x - -

W ynds torm Corporation Content United S tates OTCB B WYND 0.5 - - - - - - -

X ING AG S ocia l Networking Germany XT R A O1B C 204.4 3. 2x - 9.9x - 21.2x - 5.5x

Y edangOnline C orp. G aming S outh K orea K OS E A052770 108.7 2. 0x - 8.9x - 11.8x - 5.5x

Ynk K orea Inc. G aming S outh K orea K OS E A023770 11.7 0. 8x - - - - - -

ZipLocal Inc. Directory C anada T S XV T S XV :ZIP 0.3 0. 6x - - - - - -

High 16,034.1 39.8x 3.8x 34.1x 12.1x 74.2x 36.2x 40.1x

Low 0.0 0. 0x 0.1x 0.2x 1.5x 0.8x 7.9x 0.0x

Average 493.4 4.7x 1.3x 9.7x 6.4x 17.0x 17.6x 5.4x

Median 38.8 1. 8x 1.2x 8.6x 6.3x 12.7x 14.5x 2.3x

Figure 26. Valuation Comparison Source. Capital IQ

Comparable C ompany Analys is > Web 2.0

Summary by Country

C ompany Name USD Market Cap ($m) Avg USD Market C ap ($m) USD LTM Total R ev ($m) USD LTM Total E B ITDA ($m) EB ITDA %

United S tates 40 C hina 31, 268.6 China 3,126. 9 United S ta tes 3, 744. 3 C hina 1,774. 4 C hina 41. 0%

C anada 11 United S tates 5, 003.2 S weden 1,830. 3 C hina 3, 555. 3 S weden 268. 2 Aus tra l ia 37. 2%

C hina 10 J apan 2, 264.9 Japan 377. 5 S weden 1, 662. 4 United S ta tes 240. 1 T aiwan 29. 7%

S outh K orea 9 C anada 1, 989.8 Ta iwan 356. 4 C anada 951. 1 C anada 186. 1 J apan 26. 1%

J apan 6 S weden 1, 830.3 Canada 180. 9 S outh K orea 584. 3 J apan 130. 5 India 17. 6%

T a iwan 3 S outh K orea 1, 175.8 Ita ly 148. 7 J apan 495. 8 T a iwan 86. 4 S weden 16. 1%

A ustra lia 2 T a iwan 1, 069.3 Hong K ong 141. 2 Hong K ong 428. 1 S outh K orea 66. 7 I ta ly 16. 0%

Germany 2 Germany 231.6 Rus sia 136. 6 T aiwan 351. 7 I ta ly 36. 1 Ma lays ia 13. 3%

Norway 1 I ta ly 148.7 S outh K orea 130. 6 I ta ly 226. 2 India 23. 9 R uss ia 13. 1%

Hong K ong 1 Hong K ong 141.2 United S tates 125. 1 R uss ia 144. 1 R uss ia 18. 8 Hong K ong 4.4%

F inland 1 R uss ia 136.6 G ermany 115. 8 India 135. 8 Hong K ong 18. 8 C anada -2. 8%

I ta ly 1 F inland 47.8 Finland 47. 8 Ma lays ia 78. 6 G ermany 11. 7 S outh K orea -7. 4%

United K ingdom 1 India 28.0 India 28. 0 G ermany 52. 0 Malays ia 10. 5 United S ta tes -10.2%

India 1 Malays ia 26.0 Malay sia 26. 0 Aus tra l ia 14. 3 Aus tra lia 2. 7 Norway -10.4%

S weden 1 Aus tra lia 21.7 Austra lia 10. 9 F inland 5. 8 Norway -1. 0 G ermany -19.1%

R us sia 1 United K ingdom 6.6 United K ingdom 6. 6 Norway 2. 1 United K ingdom -1. 7 United K ingdom #DIV /0!

Ma lays ia 1 Norway 0.1 Norway 0. 1 United K ingdom 0. 2 F inland -13. 1 F inland #DIV /0!

Grand Total 92 Grand Total 45,390.2 Grand Total 493.4 Grand Total 12,432.2 Grand Total 2,859.1 Grand Total 7.4%

Figure 27. Comparison by Country Source. Capital IQ

Comparable C ompany Analys is > Web 2.0

Summary by Exc hange

Company Name USD Market Cap ($m) Avg USD Market C ap ($m) USD LTM Total R ev ($m) USD LTM Total EB ITDA ($m) EB ITDA %

OT C B B 21 NasdaqG S 18, 968.6 S E HK 5,626. 8 OM 1, 662. 4 NasdaqG S 1,641. 0 NY S E 61. 9%

Nas daqG S 14 S E HK 16, 880.4 NY S E 1,862. 2 NasdaqG S 472. 0 S E HK 599. 1 AS X 37. 2%

OT C P K 9 T S E 2, 106.0 OM 1,830. 3 S E HK 418. 5 OM 268. 2 G T S M 32. 5%

K OS E 7 NY S E 1, 862.2 Nas daqG S 1,354. 9 NY S E 233. 6 NY S E 144. 6 T S E 27. 7%

T S E 5 OM 1, 830.3 TS E 421. 2 C M 226. 2 T S E 110. 3 S E HK 24. 1%

Nas daqGM 5 KOS E 1, 114.5 G TS M 368. 2 R TS 144. 1 K OS E 63. 7 NasdaqG S 20. 3%

T S XV 5 G T S M 736.5 K OS E 159. 2 B S E 135. 8 G T S M 40. 4 OS E 17. 8%

T S X 4 OT CB B 383.3 OS E 158. 8 OS E 113. 2 C M 36. 1 B S E 17. 6%

S E HK 3 NasdaqGM 243.3 CM 148. 7 NasdaqGM 85. 3 B S E 23. 9 OM 16. 1%

AME X 2 T S X 236.6 R T S 136. 6 G T S M 80. 6 OS E 20. 2 C M 16. 0%

XT RA 2 XT RA 231.6 XT R A 115. 8 K LS E 78. 6 R TS 18. 8 K LS E 13. 3%

A S X 2 OS E 158.8 TS X 59. 1 T S E 76. 5 XTR A 11. 7 R TS 13. 1%

GT S M 2 C M 148.7 Nas daqGM 48. 7 K OS E 74. 8 K LS E 10. 5 OT CBB 4.3%

OT C NO 1 R TS 136.6 HLS E 47. 8 T S X 33. 9 AME X 6. 3 K OS E 3.4%

HLS E 1 AME X 83.7 AME X 41. 8 AME X 31. 7 AS X 2. 7 T S XV -6. 1%

NY S E 1 OT CP K 69.0 B S E 28. 0 XT R A 26. 0 OT CNO -1. 0 OT CNO -10.4%

CM 1 T S XV 58.4 K LS E 26. 0 OT CP K 21. 0 AIM -1. 7 T S X -14.7%

B S E 1 HLS E 47.8 OTC B B 18. 3 T S XV 9. 9 T S X -6. 0 OT CPK -16.5%

Nas daqCM 1 B S E 28.0 TS XV 11. 7 AS X 7. 1 T S XV -10. 1 XT RA -19.1%

OS E 1 K LS E 26.0 Nas daqCM 11. 4 H LS E 5. 8 NasdaqC M -11. 4 NasdaqGM -26.5%

A IM 1 AS X 21.7 AS X 10. 9 OT CNO 2. 1 H LS E -13. 1 H LS E #DIV /0!

OM 1 NasdaqC M 11.4 OTC P K 7. 7 OT CB B 2. 0 NasdaqGM -15. 9 AME X #DIV /0!

R TS 1 AIM 6.6 AIM 6. 6 AIM 0. 2 OT CPK -26. 5 NasdaqC M #DIV /0!

K LS E 1 OT CNO 0.1 OTC NO 0. 1 NasdaqC M 0. 1 OT CBB -52. 5 AIM #DIV /0!

Grand Total 92 Grand Total 45,390.2 Grand Total 493.4 Grand Total 148.0 Grand Total 2,859.1 Grand Total 7.4%

Figure 28. Comparison by Exchange Source. Capital IQ

Financing - Last Three Months (US$ m)Month Company Name Country Angel/S eed Debt financ ing PIPE S eries A Series B S eries C S eries D Series E Grand Total

Feb-09 Twitter US A 35.0 35.0

S ynthas ite S outh Africa 20.0 20.0

Tremor Media US A 18.0 18.0

Offerpal Media US A 15.0 15.0

Imagini UK 13.5 13.5

Emergent Game Technologies US A 12.5 12.5

Outbrain Is rael 12.0 12.0

Tvtrip F rance 9.0 9.0

Tongxue China 6.0 6.0

Oodle US A 5.6 5.6

TextDigger US A 4.3 4.3

OneSpot US A 4.2 4.2

Mixpo C anada 4.0 4.0

FetchDog US A 4.0 4.0

Virtual Fairground Netherlands 4.0 4.0

7 B illion People US A 3.0 3.0

FamilyL ink.com US A 2.9 2.9

Whis tleBox US A 2.3 2.3

Mendeley UK 2.0 2.0

Outright US A 2.0 2.0

Tvinci Is rael 1.6 1.6

Filtrbox US A 1.4 1.4

MMO L ife Netherlands 1.3 1.3

Cake F inancial US A 1.3 1.3

fav.or.it UK 0.7 0.7

Feb-09 Total 13.3 24.8 76.4 58.6 12.5 185.5

Mar-09 Kaixin001.com China 20.0 20.0

Vidyo US A 15.0 15.0

Buzznet US A 12.5 12.5

LendingClub US A 12.0 12.0

S endMe Inc. US A 12.0 12.0

Auditude US A 10.5 10.5

Glam Media US A 10.0 10.0

SuperS ecret US A 10.0 10.0

GoViral UK 8.8 8.8

Greys tripe US A 5.5 5.5

OMGPOP US A 5.0 5.0

Apture US A 4.1 4.1

S imulmedia US A 4.0 4.0

Tynt C anada 3.9 3.9

AnySource Media US A 3.2 3.2

Pixazza US A 3.1 3.1

B it.ly US A 2.0 2.0

Hunch US A 2.0 2.0

Sports Compos ite DE US A 2.0 2.0

AdultS pace US A 1.3 1.3

Myngle Netherlands 1.3 1.3

33Acros s US A 0.8 0.8

Three Melons Argentina 0.6 0.6

Mar-09 Total 1.3 1.3 0.6 41.1 50.3 43.0 12.0 10.0 159.5

Apr-09 Collective Media US A 20.0 20.0

GOOM Radio F rance 16.0 16.0

Marin S oftware US A 13.0 13.0

The R ubicon Project US A 8.0 5.0 13.0

FreeWheel US A 12.0 12.0

Cellufun US A 10.0 10.0

Conductor Inc. US A 10.0 10.0

S canScout US A 8.1 8.1

DoubleTwis t US A 5.0 5.0

IMShopping US A 4.7 4.7

Soc ialtext US A 4.5 4.5

Mixercas t US A 4.1 4.1

SoundC loud G ermany 3.3 3.3

TubeMogul US A 3.0 3.0

Tribal Nova C anada 2.5 2.5

Tripbase US A 2.0 2.0

Soc ialcas t US A 1.4 1.4

B randtology S ingapore 1.4 1.4

S can & Target F rance 1.3 1.3

J odange US A 1.2 1.2

Foodis ta US A 0.6 0.6

Apr-09 Total 10.6 8.0 45.3 52.5 16.1 12.0 144.5

Figure 29. Financing, Last Three Months Source. Company reports

Company Des c riptions - C urrent Month C apital Market Ac tivity

Company HQ Webs ite Des cription

B atanga United S ta tes www. batanga .com B atanga, Inc . opera tes as a media and enterta inment company for His panic s. I t offers online entertainment, such as Internet radio, mus ic

videos , artist interviews, and Latin-centric enterta inment content, a s well a s s ocia l network ing. T he company publishes magaz ines, a s well as

promotes and executes cus tom and s ponsor driven music -oriented events . I t a lso owns ad network ta rgeting His panic s. T he company was

founded in 1999 and is bas ed in Coral G ables , Florida with an additional office in New York. As of December 2, 2005, B a tanga , I nc . operates

as a subs idiary of Hi spanic Media , Inc.

C ellufun, LL C United S ta tes www. cellufun. com Cellufun, LLC operates as an ad s ponso red mobile gaming portal. The company’ s portal provides free enterta inment content, a s well a s

cas ua l, connected, and multiplayer games for ex isting and next-generation W eb-enabled mobile phones . It a l so offers free s ingle-player

games, as well as multi-player vers ions on a s ubs cription bas is . The company enables subs cribers to persona liz e their gaming profile; save

scores ; create teams; partic ipate in tournaments ; and share information rela ted to tips , trick s, and bragging rights . C ellufun was founded in

2005 and is bas ed in New Y ork, N ew Y ork.

C ollective Media, Inc . United S ta tes www. collective-media . com Collective Media , Inc. opera tes as a n online advertising network that specializ es in audience ta rgeting and optimiz ation s olutions for

publishers and advertis ers in the United S ta tes. I t provides context, behav ior, re-ta rgeting, demographic, and geographic ta rgeting; and

dashboard, a reporting interface that pres ents and manipula tes ad performance data generated by campa igns. T he company a ls o offers a

network of online news s ites , a s well as enterta inment, s ports , and health si tes . In addition, it provides brand advertis ing and direct marketing

services . T he company was founded in 2005 and is bas ed in New Y ork, New Y ork .

doubleTwis t Corporation United S ta tes www. doubletwis t. com doubleTwist Corporation des igns and develops entertai nment s oftware applica tions . T he company applica tions s hares and s ynchroniz es

pictures , video, and audio to media dev ices . I t offers doubleT wis t desk top, an applica tion that enables c lients to trans fer, share, and sync

persona l media ; and Twis t me! , a network applica tion that a llows us ers to share photos, v ideo, and audio files from the c lient’s prof ile pages.

doubleTwist Corporation was founded in 2007 and is bas ed in S an F ranc isco, Ca li fornia with an additiona l office in Os lo, Norway.

F reewheel United S ta tes www. freewheel. tv FreeW heel Media , Inc . offers online video advertis ing s olutions . I t offers the Monetiz a ti on R ights Management (MR M) suite to syndicate

video. F reeW heel's platform s erves video and companion ads . I ts c lients include content owners, dis tributors , and third-party ad s ellers and

ad networks . The company helps media companies s ell better to advertis ers and agencies . T he company is bas ed in S an Mateo, Ca lifornia F oodis ta United S ta tes www. foodista .com Foodis ta is a W iki pedia for rec ipes, food, and cooking. R eci pes are contributed and edited in a wik i in an a ttempt to avoid numerous repeats

of the s ame rec ipe. The s ite takes a structured data approach aki n to IMDB , where every ingredient, cooking technique, utens il, and dis h

links to every other mention on the s ite.Go On Media F rance www. goomradio.com Go On Media operates digita l radio sta tions . I t broadcasts music , weather, news , and music news through I nternet. In addition, the company

operates a community for interaction between the c reators of radi os. T he company was founded in 2007 and is based in S aint C loud,

F rance.IM shopping United S ta tes www. imshopping. com IMS hopping helps make finding products eas ier by employ ing rea l people who search out dea ls , read reviews and s hare this valuable

information with you and the greater community . T he company is based S anta C la ra , Ca lifornia and is back ed by S K T elecom V entures .

Marin Software United S ta tes www.marinsoftware.com Marin S oftware Incorporated provides pa id sea rch management application to advertis ers and agencies . It offers Marin S earch Marketer, a

hosted search management application that address es the work flow, analy sis , and optimization needs of profess ional s ea rch mark eters , as

well a s provides an interface to create, manage, and optimize paid sea rch campaigns. T he company als o prov ides support services . Marin

S oftware Incorporated was founded in 2006 and is bas ed in S an F ranc isco, C a lifornia .

Mixercas t, Inc . United S ta tes www.mixercast.com Mixercas t, I nc . provides s oc ial marketing application pla tform that enables content pub lishers and advertis ers to reach audiences across the

soc ia l W eb. It offers MC ast P latform that includes a s et of tools and s ervi ces to c reate, distribute, monetiz e, and track va rious types of social

ma rk eting applica tions, inc luding widgets, mas h-ups, F acebook and MyS pace apps, and portab le content or brand experiences. M ixercast,

Inc . was formerly known as Nanocast Labs, I nc . The company was founded in 2005 and is bas ed in S an Mateo, California .

S can & Target F rance www. s canandta rget. com S can & Target provides s oftware as a serv ice solution for the ana lys is and filtering of tex t user generated content. I t offers its ana lys is

solution for va rious applica tions, s uch as moderating and monetiz ing us er generated content, routing and qua lity control, validating ads and

listings , and populating cus tomer relations hip management databases . T he company provides its s olution in various platforms , such as

Internet, mobile, and interactive televis ion for pub lishers of onl ine communities, moderating s ervice providers , and suppliers of technology

solutions . S can & Ta rget was founded in 2007 and is bas ed in P uteaux, F rance.

S canS cout, Inc. United S ta tes www. s cans cout. com S canS cout, Inc . opera tes as an online video advertising network. I t s erves publis hers , advertise rs , and ad network s . The company was

founded in 2005 and is bas ed in B oston, Mass achus etts with additiona l offices in New York and Los Angeles .

S ocialcas t United S ta tes www. s ocialcast. com S ocia lcas t provides soc ial network ing pla tforms and s olutions for both consumer-fac ing clients and enterpris e cus tomers . The company was

founded in 2005 and is bas ed in Irv ine, Cal ifornia .

S ocialtext Incorporated United S ta tes www. s ocialtext.com S ocia ltext Incorporated develops enterpris e s oc ia l s oftware. T he company focus es on offering collaboration platform that a llows

organizations to collaborate. It offers P eople, which enables users to integra te s oc ial network ing with enterprise collaboration; W eblog that

supports collaborative and ongoing conversa tions among colleagues ; W orks pace, an enterpris e wiki for sea rching information and people;

and S igna ls that amplifies, cla rifies , and complements other collaboration ac tiv ities , a s well a s prov ides a medium for information s haring.

The company a ls o provides Dashboard, which aggregates content from S oc ialtex t wik i pages , the W eb, and enterprise systems; and

S ocia lCalc s preadsheets that inc lude information from other spreads heets or works pace pages . The company was founded in 2002 and is

based in P a lo Alto, C a lifornia .S oundCloud L td. Germany s oundc loud.com S oundCloud L td. provides an online audio pla tform for recei ving, s ending, and distributing music for a rtis ts , record labels , and other music

profes s iona ls. T he company was founded in 2007 and is based in B erlin, G ermany .

R ubicon Project, Inc . United S ta tes www. rubiconproject.com R ubicon P roject, I nc. , an advertis ing technology company , provides online advertis ing solutions to W eb publishers and ad networks . I t a lso

offers ad network optimiz ation serv ices , a s well a s ad qua lity protection programs . In addition, the company prov ides solutions to s top

unwanted ads in track s by protecting W eb publis hers. T he company was founded in 1998 and is based in Los Angeles, Ca lifornia .

T ripbase United S ta tes www. tripbase. com Tripbas e is a travel webs ite that gives you unbiased recommendations about where to go on your next trip based on what you lik e.

T ribal Nova, Inc. C anada www. triba lnova. com/en/ Triba l Nova , I nc. develops and mark ets Internet s ites , online games , interactive televis ion programs , and cellula r telephony content for

children. It produces an array of games ranging from educationa l pres chooler online games , s uch as Ca i llou to multiplayer online role playi ng

game for teens, such as Magi Nation. The company operates at the internationa l level in E urope and North America . T riba l Nova , Inc . was

founded in 2004 and is bas ed in Montrea l, Canada.

TubeMogul, Inc. United S ta tes www. tubemogul. com TubeMogul, Inc. opera tes as an online video ana lytics and dis tribution company worldwide. It focuses on prov iding v ideo publis hing tools .

The company provides a s ingle point for deploy ing uploads to the video s haring s ites , and analytics on who, what, and how v ideos are being

viewed. It serves content producers, media companies , ad age ncies , digita l consultants, record labe ls , f ilm s tudios , politicians , consumer

products organiz a tions , and corporations. The company was founded in 2006 and is based in B erkeley , California .

Figure 30. Company Descriptions Source. Company reports, Capital IQ, Crunchbase

RELEVANT DISCLOSURES APPLICABLE TO: NONE

L IST OF D IS CLOS URE TE RMS :

1. None applicable.

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no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or

recommendations expressed in this research report.

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09 05 05 Web 2.0 Weekly

Technology

Transcript of 09 05 05 Web 2.0 Weekly