09 09 22 Web 2.0 Weekly

SOFTWARE & SERVICES 22 SEPTEMBER 2009

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

DAVID SHORE, CFA, MBA 416.860.6784

[email protected]

Damian Wojcichowsky, CFA (Associate), 416.860.7652

HOW VALUABLE ARE UNIQUE VISITORS?

TWITTER’S VALUE QUADRUPLES SINCE FEBRUARY; DOES SPIKE IN USERS JUSTIFY THE INCREASE? Twitter is rumoured to be raising a new $50 mill ion round of funding at a $1 bil lion valuation. The company most recently raised $35 mill ion at a rumoured $250 mil lion valuation in February. While the increase in value seems extraordinary, when looking at the valuation per unique visitor (UV), the increase is less impressive – from $29 to $42 (+47%). Note that we would of course prefer comparing valuation based on financial metrics such as cash flow or even revenue. However, Twitter has not yet started generating any revenue.

Value per unique vis itor (UV)

P laxo, $200 Mint.com, $113

F riendFeed, $48

C lub P enguin, $29

Twitter, $29

L inkedin, $88

Twitter, $42

B ebo, $22

P eople Media , $20 S tumbleUpon, $5

F riendsR eunited, $2

(200,000,000)

-

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

1,200,000,000

$(50) $- $50 $100 $150 $200 $250

(V a lue per Unique V is itor)

(Total Valuation $)

P laxo

Mint.com

Linkedin

F riendF eed

Twitter

C lub P enguin

Twitter

B ebo

P eople Media

S tumbleUpon

F riendsR eunited

F eb 09

S ep 09

B ubble s ize denote s numbe r of UV

S ource : C ompany re ports , C ompete .com

Deal flow picks up: Total transaction value in the Web 2.0 universe for September nearly doubled to $74.2 mill ion, up from $37.4 mil lion last week. Another 4 financings were announced this week, bringing the month-to-date total to 13 transactions averaging $5.7 mill ion each (compared with 9 trades averaging $4.7 mill ion last week). The largest transaction stands at $20 mil lion for Ensequence (provider of software and services to manage interactive television content). Deal f low in prior months was as fol lows: August, $208.5 mil lion, averaging $7.7 mil lion over 27 deals; July, $191.4 mil lion, averaging $5.5 mil lion over 35 deals; and June, $204.7 mil lion, averaging $4.9 mil lion over 42 deals.

Broad-based price improvement: Twenty-nine of the companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1) while twelve companies showed negative one-week returns. Volatile price swings continue for DigitalTown (OTCBB:DGTW), rising 76% this week fol lowing a 14% decline the previous week. Frogster International (XTRA:FRG) experienced the largest decline at -8.8%.

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 public Web 2.0 companies: Our Web 2.0 universe contains 90 companies, with a combined market cap of approximately $69 bill ion (Figure 1). The median market cap for the group is $49 mill ion, with average trail ing revenue of $161 mill ion (median $54 mil lion). The companies are also generally profitable, with a median EBITDA margin of 11.8%. On a valuation basis, the overall average is 5.4x trai ling revenue (median 2.1x) and 13.2x trai ling EBITDA (median 10.3x). Twenty of the companies have more than 500 employees.

Comparable Company Analys is > Web 2.0

Company Name LTM as of Ticker E xchange

Trading

Currency HQ

Current

Price

USD Market

Cap ($m)

USD LTM Total

R ev ($m)

USD LTM Total

E B ITDA ($m)

EB ITDA

%

TEV/LTM

Revenue

TEV/LTM

E B ITDA EmployeesAccelerize New Media , Inc. 6/30/2009 AC LZ OTCB B US D United S tates 0.65 18.2 4.4 (3 .7) -83.3% 5.2x - 11

Actoz S oft C o. , L td. 6/30/2009 A052790 K OS E K R W S outh K orea 19,950 142.6 107.6 25.6 23.8% 1.0x 4.3x NA

AQ Interactive, Inc. 6/30/2009 3838 T S E J P Y J apan 52,500 31.0 64.2 (1 .9) -2.9% 0.2x - NA

As socia ted Media Holdings Inc. 6/30/2007 AS MH OTCP K US D United S tates 0.01 0.6 0.1 (2 .3) NM 15.6x - 3

B igs tring C orp. 6/30/2009 B S GC OTCB B US D United S tates 0.02 1.1 0.1 (1 .5) NM 34.6x - 4

B etawave C orpora tion 6/30/2009 BWAV OTCB B US D United S tates 0.07 2.0 9.4 (12.6) NM - - 51

B eyond C ommerce, Inc. 6/30/2009 B YOC OTCB B US D United S tates 0.17 7.9 11.7 (12.8) NM 1.2x - 101

B right T hings plc 3/31/2009 AIM:B G T AIM GB P United K ingdom 0.01 6.0 0.0 (2 .7) NM - - NA

B roadW ebAs ia Inc. 9/30/2008 BWBA OTCP K US D United S tates 0.23 19.5 0.0 (4 .6) NM - - 46

CDC C orp. 6/30/2009 CHIN.A NasdaqG S US D Hong K ong 2.78 294.6 361.6 25.1 6.9% 0.8x 11.6x 2,227

C hangyou.com L imited 6/30/2009 C YOU NasdaqG S US D China 38.29 2,106.0 241.2 147.2 61.0% 7.6x 12.4x 628

C hina G ateway C orporation 9/30/2008 CGWY OTCP K US D United S tates 0.02 0.3 6.7 (6 .6) -98.9% 0.0x - 37

C hinese G amer Interna tional 6/30/2009 G T S M:3083 G T S M TWD T a iwan 458 1,187.8 61.6 34.7 56.2% 18.1x 32.2x NA

C LIC K E R Inc. 5/31/2009 C LK Z OTC B B US D United S tates 0.01 0.4 2.5 (1 .2) -45.8% 0.2x - 22

C ornerWorld C orporation 4/30/2009 CWR L OTCB B US D United S tates 0.06 5.7 3.9 NM NM 4.1x - 16

C yberplex Inc. 6/30/2009 T S X:C X T S X CAD C anada 1 76.6 90.5 9 .8 10.8% 0.6x 5.8x NA

DADA S pA 6/30/2009 CM:DA CM E UR Ita ly 6.95 165.4 242.6 31.9 13.1% 0.9x 6.7x NA

DXN Holdings B hd 5/31/2009 DXN K LS E MYR Malays ia 0.61 39.8 77.1 11.1 14.4% 0.7x 4.9x NA

Dibz International, Inc. NA DIB Z OTC P K US D United S tates 0.00 0.0 NA NM NM - - NA

Digita lP os t Interactive, Inc. 6/30/2009 DGLP OTC B B US D United S tates 0.06 4.6 1.0 (1 .4) NM 6.7x - 7

Digita lT own, Inc. 5/31/2009 DGTW OTCB B US D United S tates 2.64 72.2 NM (2.5) NM - - 3

Dolphin Digita l Media , Inc. 6/30/2009 DPDM OTCB B US D United S tates 0.40 21.5 0.6 (3 .4) NM 38.6x - NA

E olith C o. Ltd. 12/31/2008 A041060 K OS E K R W S outh K orea 875 52.6 15.3 (3 .6) -23.6% 3.6x - NA

E xtens ions , Inc. 6/30/2009 E XT I OT C P K US D United S tates 0.25 11.1 NM NM NM - - 2

F luid Mus ic C anada, Inc. 6/30/2009 T S X:FMN T S X CAD United S tates 1.40 68.0 5.3 (5 .1) -95.2% 11.4x - NA

F rogs ter Interactive P ictures AG 6/30/2009 FR G XT R A E UR Germany 17.13 63.5 9.7 (4 .5) -47.0% 6.4x - NA

G amania Digita l E nterta inment C o. , L td. 6/30/2009 6180 G T S M TWD T a iwan 51.70 242.1 140.6 25.1 17.9% 1.6x 8.7x NA

G ameOn C o L td. 6/30/2009 3812 T S E J P Y J apan 100,800 105.8 79.6 19.5 24.5% 0.4x 1.7x NA

G eoS entric Oyj 6/30/2009 G E O1V HLS E E UR F inland 0.05 65.9 5.5 (17.5) NM 12.1x - 115

G iant Interactive G roup, Inc. 6/30/2009 GA NY S E US D China 8 1,750.4 198.5 124.1 62.5% - - 1,570

G igaMedia Ltd. 3/31/2009 G IGM NasdaqG S US D T a iwan 5.57 303.7 183.6 NM NM 1.3x - 751

G ravity C o. , L td 6/30/2009 GR V Y NasdaqGM US D S outh K orea 1.95 54.2 48.6 16.5 33.9% - - 469

G ree, Inc. 6/30/2009 T S E :3632 T S E J P Y J apan 9,850 2,394.2 151.5 91.0 60.1% 15.0x 25.0x NA

G ungHo Online E nterta inment, Inc. 6/30/2009 3765 OS E J P Y J apan 243,000 302.3 116.1 25.8 22.2% 2.3x 10.4x NA

HanbitS oft, Inc. 6/30/2009 A047080 K OS E K R W S outh K orea 4,050 73.6 60.1 1 .4 2.3% 1.0x 43.0x NA

IAC /InterActiveC orp. 6/30/2009 IAC I NasdaqG S US D United S tates 20.63 2,731.5 1,392.3 52.7 3.8% 0.7x 18.8x 3,200

IAS E nergy, Inc. 1/31/2009 IAS A.E OTC B B US D C anada 0.15 10.6 0.0 (0 .8) NM - - NA

is eemedia Inc. 3/31/2009 IE E T S XV CAD C anada 0.09 4.3 1.6 (5 .1) NM 2.1x - NA

J umbuck E nterta inment L imited 6/30/2009 AS X: JMB AS X AUD Aus tra lia 0.40 16.8 16.6 7 .1 42.8% 0.6x 1.5x 79

K AB Dis tribution Inc. 6/30/2009 T S X:K AB T S X CAD C anada 0 0 .6 68.4 4 .0 5.8% - - NA

K ingsoft C o. Ltd. 6/30/2009 3888 S E HK HK D China 8 1,141.2 139.1 61.4 44.2% 8.3x 18.7x 2,271

L ingo Media C orpora tion 6/30/2009 T S XV :LM T S XV CAD C anada 1.00 11.5 1.2 (1 .9) NM 8.8x - NA

L iveW orld Inc. 6/30/2009 LVWD OTCP K US D United S tates 0.05 1.5 10.6 (0 .1) -1.2% 0.0x - NA

LookS mart, Ltd. 6/30/2009 LOOK NasdaqGM US D United S tates 1.28 21.9 56.8 (4 .4) -7.8% - - 90

Magnitude Information S ys tems Inc. 6/30/2009 MAGY OTCB B US D United S tates 0.01 4.5 0.1 (2 .5) NM - - 14

Mixi, Inc. 6/30/2009 2121 T S E J P Y J apan 599000.00 1,002.2 132.8 44.8 33.8% 6.7x 19.7x NA

Modern T imes G roup Mtg AB 6/30/2009 MTG B OM S E K S weden 312.50 2,974.2 1,982.6 304.6 15.4% 1.8x 11.7x 2,969

MOKO.mobi L imited 12/31/2008 MK B AS X AUD Aus tra lia 0.07 5.2 1.2 (2 .6) NM 3.2x - NA

Myriad G roup AG 12/31/2008 MY R N S W X CHF S witzerland 4.46 92.0 40.0 0 .8 1.9% 2.4x - 405

NE OW IZ G ames C orporation 12/31/2008 A095660 K OS E K R W S outh K orea 42000.00 732.8 205.2 55.1 26.8% 3.5x 13.1x NA

NetDragon W ebS oft, Inc. 6/30/2009 777 S E HK HK D China 6 394.2 89.3 25.7 28.7% 2.9x 9.9x 2,426

Netease.com Inc. 6/30/2009 NT E S NasdaqG S US D China 43.79 5,667.6 472.4 297.4 63.0% - - 3,109

NeuLion Incorporated 6/30/2009 T S X:NLN T S X CAD C anada 0.93 98.3 21.5 (13.0) -60.3% 4.1x - 237

NeXplore C orporation 6/30/2008 NXPC OTCP K US D United S tates 1 30.7 0.7 (6 .2) NM 49.2x - NA

Ngi G roup Inc. 6/30/2009 2497 T S E J P Y J apan 26750.00 36.0 90.3 6 .7 7.4% - - NA

Northgate T echnologies L imited 6/30/2009 590057 B S E INR India 42.65 31.0 82.8 (41.4) -50.0% 0.4x - NA

Open T ext C orp. 6/30/2009 OT E X NasdaqG S US D C anada 39.45 2,215.1 785.7 205.1 26.1% 2.9x 10.9x 3,411

Openwave S ys tems Inc. 6/30/2009 OPWV NasdaqG S US D United S tates 2.70 225.4 191.7 4 .9 2.6% 0.6x 23.8x 590

P erfect W orld C o. , L td. 6/30/2009 PWR D NasdaqG S US D China 43.98 2,163.0 255.7 142.2 55.6% 0.7x 1.2x 2,096

P NI Digita l Media Inc. 6/30/2009 T S XV :P N T S XV CAD C anada 1.89 59.9 21.2 2 .3 11.0% 2.7x 24.9x NA

Quepasa C orp. 6/30/2009 QP S A OTCB B US D United S tates 2 22.1 0.2 (10.6) NM - - 74

OAO R B C Information S ys tems 12/31/2007 R B C I R T S US D R uss ia 1.16 160.9 156.2 20.4 13.1% 0.0x 0.3x NA

S handa Interactive E nterta inment Ltd. 6/30/2009 S NDA NasdaqG S US D China 53.53 3,574.1 629.0 296.7 47.2% - - 3,124

S hutterfly, Inc. 6/30/2009 S FLY NasdaqG S US D United S tates 17.71 450.8 218.6 27.3 12.5% 1.8x 14.2x 514

S K C ommunications C o. , L td. 12/31/2008 A066270 K OS E K R W S outh K orea 9310.00 323.4 190.8 12.4 6.5% 1.7x 26.1x NA

S NAP Interactive, Inc. 6/30/2009 S T V I OT C B B US D United S tates 1 5 .4 3.5 0 .9 27.0% 1.1x 4.0x 11

S NM G loba l Holdings 9/30/2008 S NMN OTCP K US D United S tates 0.00 0.0 2.0 (0 .7) -34.8% 1.1x - 33

S ocia l Media V enures , Inc. 12/31/2008 S MV I OTC P K US D United S tates 0 0.0 0.1 (0 .1) -60.6% 4.5x - NA

S ocia lwise, Inc. 6/30/2009 S C LW OTCB B US D United S tates 0.58 25.7 0.0 (5 .6) NM - - NA

S ohu.com Inc. 6/30/2009 S OHU NasdaqG S US D China 68.86 2,639.7 485.1 209.6 43.2% 4.4x 10.2x 3,197

S park Networks , Inc. 6/30/2009 LOV AME X US D United S tates 2 45.3 50.5 10.8 21.3% 0.9x 4.0x 183

S pectrumDNA, Inc. 6/30/2009 S P XA OTCB B US D United S tates 0 10.7 0.1 (2 .5) NM - - 7

T encent Holdings L td. 6/30/2009 700 S E HK HK D China 128 29,985.0 1,391.6 680.3 48.9% 23.7x 48.4x 6,421

T he P arent C ompany 8/2/2008 K IDS .Q OTC P K US D United S tates 0.01 0.2 112.0 (13.5) -12.0% 0.2x - 347

T he9 L imited 12/31/2008 NC T Y NasdaqG S US D China 8.46 212.3 250.6 85.5 34.1% - - 1,626

T heS treet. com, Inc. 3/31/2009 T S CM NasdaqGM US D United S tates 2.72 83.2 67.0 1 .9 2.9% 0.3x 9.6x 310

T ota l S port Online AS 3/31/2006 TOS O OTCNO NOK Norway 0.03 0.1 2.3 (1 .1) -50.6% 4.6x - 16

T ree.C om, Inc. 6/30/2009 T R E E NasdaqGM US D United S tates 7.79 84.2 216.6 (0 .7) -0.3% 0.4x - 700

Unis erve C ommunications Corp. 2/28/2009 T S XV :US S T S XV CAD C anada 0.04 0.9 24.1 0 .1 0.2% 0.2x - NA

United Online Inc. 6/30/2009 UNTD NasdaqG S US D United S tates 8.26 692.5 949.8 203.2 21.4% 1.0x 4.7x 1,469

UOMO Media , Inc 4/30/2009 UOMO OTCB B US D C anada 0 10.5 0.9 (0 .5) -53.2% 12.6x - NA

V alueC lick Inc. 6/30/2009 V C LK NasdaqG S US D United S tates 13 1,109.5 563.6 99.0 17.6% 1.7x 9.8x 1,189

V OIS , Inc. 6/30/2009 VOIS OTC B B US D United S tates 0 2.5 0.0 (1 .0) NM - - 4

W ebzen Inc. 6/30/2009 W ZE N NasdaqGM US D S outh K orea 3.05 36.2 22.9 2 .3 9.9% - - 328

W izzard S oftware C orpora tion 6/30/2009 W ZE AME X US D United S tates 0.46 23.2 5.3 (4 .5) -84.9% 4.6x - 110

W orlds . com Inc. 6/30/2009 WDDD OTCB B US D United S tates 0.10 5.2 0.1 (0 .7) NM - - 1

W ynds torm C orporation NA W YND OTCP K US D United S tates 0.10 1.8 NA NM NM - - NA

XING AG 6/30/2009 O1B C XT R A E UR Germany 32.75 253.5 59.0 17.0 28.8% 3.4x 11.8x 246

Y edangOnline C orp. 12/31/2007 A052770 K OS E K R W S outh K orea 9020.00 112.1 56.8 12.2 21.6% 2.1x 9.9x NA

Y nk K orea Inc. 12/31/2008 A023770 K OS E K R W S outh K orea 4215.00 18.7 11.8 1 .2 10.5% - - NA

High 29,985.0 1,982.6 680.3 63.0% 49.2x 48.4x 6,421

Low 0.0 0.0 -41.4 -98.9% - - 1

Average 769.5 160.8 38.6 5.2% 5.4x 13.2x 901Median 48.9 53.7 1.2 11.8% 2.1x 10.3x 242

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 )

Deal flow picks up: Total transaction value in the Web 2.0 universe for September nearly doubled to $74.2 mill ion, up from $37.4 mil lion at time of publication last week. This week has brought another four financings to the sector, bringing the month-to-date total to thirteen transactions averaging $5.7 mill ion each (compared with our month-to-date average of $4.7 mill ion last week over nine transactions). The largest transaction is a $20 mil lion financing of Ensequence (provider of software and services to manage interactive television content). The Ensequence trade exceeds the previous transaction value high in September set by the $9 mil lion financing of InXpo (Virtual Worlds). In comparison, total capital raised in August was $208.5 mill ion, averaging $7.7 mill ion (27 deals); for July (35 deals) $191.4 mil lion, averaging $5.5 mil lion; and June (42 deals) was $204.7 mil lion (averaging $4.9 mil lion).

Financing Activity Last Twelve Months

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

Quiet After Mint: Following Intuit ’s acquisition of Mint.com for $170 mil lion last week, f inancing and M&A headlines were more muted with the $20 mil lion series D financing of Ensequence making the top headline in the Web 2.0 space. Fwix, a local news search application developer, announced a $2.8 mil lion series A raise. NextBio, a li fe sciences collaboration products company, announced $8.0 mil lion in series C financing. Finally, Mocapay, a mobile payments services concern, is raising $3 mill ion in a series C financing. For additional details on financings, see Figures 23 and 24 (at end of note).

Financing & M/A Summary - Last Three Months

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

Advertising remains the most active sector: Advertising-related companies continue to see the most activity by number of transactions (10), fol lowed by Social Networks (9), and Gaming (8) (Figure 4). The $2.0 bill ion acquisit ion of Skype skews the dollars transacted to the SMS/Voice segment, while the $170 mil lion acquisition of Mint brings the Vertical Communities segment to the second highest total.

Capital Market Activity by Sector - Last Three Months

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

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

Web 2.0 index continues to outpace NASDAQ recovery: Our Web 2.0 index (market-cap weighted) essentially mirrored the performance of the NASDAQ composite index from mid-2008 until earlier this year. However, the index has recently had a much stronger recovery relative to the NASDAQ index (Figure 5).

Web 2.0 Index Price Performance

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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

5/1

8/2

009

6/1

/2009

6/1

5/2

009

6/2

9/2

009

7/1

3/2

009

7/2

7/2

009

8/1

0/2

009

8/2

4/2

009

9/7

/2009

9/2

1/2

009

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

Figure 5. Web 2.0 Price Performance Source. Capital IQ

Broad-based price improvement: Twenty-nine of the companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1) (Figure 6) while twelve companies showed negative one-week returns. Volati le price swings continue for DigitalTown (OTCBB:DGTW), rising 76% this week fol lowing a 14% decline the previous week. Frogster International (XTRA:FRG) experienced the largest decline at -8.8% for the week.

1 Week Price Performance

-8.8%-5.9%-5.6%-3.6%-2.3%-2.0%-1.9%-1.4%-0.9%-0.6%-0.5%-0.3%

0.0%0.0%0.4%0.5%0.9%0.9%1.3%2.3%2.6%2.7%2.9%3.3%3.5%3.7%3.8%4.1%4.6%5.9%6.3%7.4%7.9%9.4%10.6%10.6%10.8%12.5%13.8%14.0%15.3%

19.2%76.0%

-0.2 -0.1 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9

Frogs ter Interac tive Pictures AGOpenw ave S ys tems Inc .Changyou.com Limited

HanbitS oft, Inc .DADA S pA

Y edangOnline Corp.K ings of t Co. Ltd.

NetDragon WebS oft, Inc .Myriad Group AGQuepas a Corp.Tree.Com, Inc .

X ING AGCyberplex Inc .

L ingo Media CorporationCDC Corp.

PNI Digita l Media Inc .Tencent Holdings Ltd.S park Netw orks , Inc .

Perfect World Co. , Ltd.Eolith Co. Ltd.

TheS treet. com, Inc .G iant Interactive Group, Inc .

Neteas e.com Inc .S K Communications Co. , Ltd.

The9 L imitedWebzen Inc .

Y nk K orea Inc .S handa Interactive

S ohu.com Inc .United Online Inc .

IAC/InterActiveCorp.NEOWIZ Games CorporationModern Times Group Mtg A B

LookSmart, Ltd.Open Tex t Corp.

Chines e Gamer Internationa lAc toz S oft Co. , Ltd.

Gamania Digita l EntertainmentV alueClick Inc .Gravity Co. , LtdGigaMedia Ltd.S hutterf ly , Inc .

Digita lTow n, Inc .

Figure 6. 1-Week Price Performance Source. Capital IQ

PUBLI C CO MP ANY I NDUST RY NEWS (P ART NE RS HIPS , F I NANCI AL RE SULT S, NE W P RODUCTS )

Key DevelopmentsCompany Headline Notes

S hutterfly, Inc . (NasdaqGS :S FLY ) S hutte rfly Inc . Appoints B rian Swe tte to the B oa rd On S eptember 8 , 20 09, B rian S wette wa s appointed to the B oa rd of D irec tors of S hutterfly Inc . Mr. S wette will a ls o s erve on the A udit

C ommittee of the B oa rd. M r. Swe tte has s erved on the B oard of B urge r K ing s ince 2 003, and be ca me Non-E xe cutive C hairma n in 2006. Mr.

S wette a ls o s erves on the Board of Dire ctors for J amba Ju ice, C BL P artners , F R S C ompany and C a re .com.

S hutterfly, Inc . (NasdaqGS :S FLY ) John P ois son to J oin in S hutterfly, Inc S hutterfly I nc . announced that it has a cquired T iny P ic tures . T iny P ictures 's founder and C E O , J ohn P ois s on, a long with the T iny P ictures

te am, will jo in S hutte rf ly .

CornerWorld Corporation

(OTC BB :CWR L )

CornerW orld C orporation R eports E a rnings R es ults for

the F irs t Quarte r E nded July 31 , 2009

CornerW orld C orpora tion reported earnings res ults for the firs t quarter e nde d J uly 3 1, 2 009 . F or the quarter, the company reported net los s

of $334,5 55, down $107 ,57 1 for the same qua rter the prev ious ye ar 2008.

G iant Inte rac tiv e G roup, Inc .

(NYS E :GA)

Giant Interac tive Group I nc. A ppoints E rns t & Y oung Hua

Ming a s the C ompany's I ndependent Auditors

G iant Inte ra ctive G roup Inc. 's shareho lde rs res olutions adopted at its a nnua l gene ra l mee ting of s hareholders held in S ha ngha i on

S eptember 11 , 2009. T he compa ny 's s hareholders appo inted E rns t & Y oung Hua M ing as the compa ny's independent auditors for the f is cal

year e nding D ecember 31 , 20 09.

CM Capita l Investments ; Myriad G roup

AG (S WX:MYRN); S outhe rn C ros s

Venture Partners ; Xumi i, Inc.

Myriad G roup AG (SW X : MYR N ) a cquired Xumii, Inc. Myria d G roup AG (S W X: MY R N) acqu ired Xumii, Inc . on S eptember 15 , 2009. T he f ina ncia l terms of the de a l were not dis c los ed. A ll 17

employees o f Xumii will be part of Myriad G roup. T he tra ns action is not expecte d to have a materia l impa ct to Myriad re venue or E B IT DA for

the fu ll fis ca l yea r 2009 .

Myria d G roup AG (S W X: MY R N) completed the acquis ition of Xumii, Inc. on S eptember 15 , 20 09.

LookSmart, L td. (NasdaqGM:LOOK ) S ta ce y G iamalis to Le ave LookSmart L td. as G ene ra l

C ounse l a nd S en ior V ice P re sident

On S eptember 9 , 20 09, S tacey G iamalis , G eneral C ouns el and S enior V ice P res ident, and LookSmart Ltd. determined tha t Ms . G iamalis

would s eparate from the C ompany ef fec tive S eptembe r 15, 2009.

IAS Ene rgy, Inc . (OTCBB : IASA.E ) IAS E ne rgy, Inc. a nnounced delayed 1 0-Q filing On 0 9/15/2009, IA S E ne rgy, Inc . a nnounced that the y will be unable to file the ir next 10-Q by the de adline requ ired by the S E C .

K ings oft Co. L td. (SE HK :3888) K ings oft C o. Ltd. R eports E arnings R e sults for the F irs t

Ha lf of 200 9

K ings oft C o. Ltd. reported ea rnings res ults for the first ha lf of 2009. F or the firs t ha lf, the company reaped total revenues of CNY 476 million,

r is ing 37% yea r on yea r. G ross profit arrived at C NY 417 million, jumping 40% from firs t half of 200 8. G ros s margin reached 88% .

IAS Ene rgy, Inc . (OTCBB : IASA.E ) IAS E ne rgy D ele ted F rom OTCB B IAS E nergy, Inc's common s tock has been deleted from OTC Bulletin B oard effe ctive S eptember 16 , 2009 on a ccount of its fa ilure to comply

with N AS D 6 530. T he company ha s been added to NB B .

NetDragon WebS oft, Inc. (SE HK :777) NetDragon W ebS oft Inc . Launches Demon R is ing Ne tDragon W e bS oft I nc. announced the launch of Demon R is ing, a new Ch ine se expans ion pack for its flags hip E udemons O nline game.

Demon R is ing marks the f ifth E P re lea s ed for E udemons On line s ince the game was initia lly la unched in J une 2006, a nd will introduce a

s erie s of s ix comprehens ive instanced activities .

IB 3 Networks , Inc . (OTCBB : IB NW) IB3 Networks I nc . T erminates J ulia C ooper a s VP of

S a les a nd Operations

E ffe ctive S eptember 14 , 20 09, Ju lia C oope r was terminated as V P of S ales and O pe ra tions of IB 3 Ne twork s Inc.

Tencent Holdings Ltd. (S E HK :700) T encent Aggres s ively S couting F or Overse as M&A T he P re sident of T ence nt Holdings Ltd. , C hi-ping L au s a id that the company will accelerate the pace of its merge and acquis ition and may

conduct direct inves tment and jo int inve stment to expand overs eas . Lau noted that Te ncent will ke ep scouting for potentia l foreign M& A

opportunities a nd has a lready opened repre se ntative o ffice s in V ietnam, India , S outh K orea, and the U.S . T encent would lik e to s eiz e

opportunities in the g lobal financia l meltdown and partner with other companie s in re lated f ie lds that has grea t potentia l, sa id Lau. Howeve r,

T encent will not lower its crite ria for potentia l M&A de a ls a t a time when more and more M&A opportun ities a re being thrown up becaus e of

the global financial cris is . T he firm will e xamine the fe as ibility o f the de a ls by evaluating its own te chnology , tale nt a nd bus ines s performance ,

according to L au.

Logica ; Open Text C orp.

(Nas daqGS:OTEX )

Open T e xt C orp. E xtends P a rtners hip with Logica Ope n T ext C orp. ha s extende d its pa rtners hip with Logica , with L ogica joining the Open T ext G lobal P artne r P rogram for S A P Compe tence .

Under the agre ement, Logica will deliver and s upport the O pen T ex t E nte rpris e C ontent Ma nagement (E CM) s uite for S AP s olutions . T he

companie s , togethe r with S AP , will colla borate on the implementa tion o f joint market o fferings , bas ed on the Open T e xt E CM s uite for S AP

s olutions , in conjunction with a range of cons ulting, s ys tems integra tion, applica tion mana gement and managed operation s ervices from

Logica .

Openwave S ystems Inc .

(Nas daqGS:OPWV)

Openwa ve S ys tems Inc . - C onfe rence P res entation C a ll T o pres ent outlining compa ny's vis ion for products , markets a nd growth stra tegy

Tree.Com, Inc . (NasdaqGM:TREE ) T re e.C om I nc. and Mortech I nc. R e solve L aws uit T ree. C om Inc. and Morte ch Inc. have res olved their laws uit to the mutual s atisfac tion of both partie s, and the laws uit has been dismiss ed.

Dolby L aboratories Inc. (NY SE :DLB );

G iant Inte rac tiv e G roup, Inc .

Giant Interac tive to U tiliz e Dolby(R ) A xon 3D Voice

T echnology in ZT Online

G iant Inte ra ctive G roup Inc. announced tha t it will integra te Dolby(R ) A xon, the 3D voice technology developed by Do lby La boratories I nc. ,

into its f la gs hip mas sively multipla ye r online role playing game (MMOR P G ) ZT Online . ZT Online will incorporate Dolby A xon 3D voice to

MOKO.mobi L imited (ASX :MK B ) MOKO .mobi L imited R eports R eturn on E qu ity R e sults

for the Y ear E nded J une 30 , 2009

MOK O .mobi Limite d (Loop Mobile) reported return on equity res ults for the year e nded J une 30, 2009. for the ye ar, the company reported

los s on equity of 271 .2% and los s on as s ets o f 184.3% compared to los s on equity of 183.5% and loss on as s ets of 1 50.4% for the sa me

Figure 7. Key Developments Source. Capital IQ

VAL UAT IO N

Online Gaming companies lead market-cap charts: Fifteen companies in our Web 2.0 universe top US$1 bill ion in market capital ization (Figure 8), up from thirteen last week. Fifty-eight of the ninety-one companies have market caps under US$100 mill ion, with 37 under US$10 mil lion. Online gaming companies dominate the top of the l ist, led by Tencent Holdings with a market cap near US$30 bil lion.

Market Cap (USD m)

0.00.00.00.10.20.30.40.60.60.91.11.51.82.02.54.34.54.65.25.25.45.76.07.910.510.610.711.111.516.818.218.719.521.521.922.123.225.730.731.031.036.036.239.845.352.654.259.963.565.968.072.273.676.683.284.292.098.3105.8112.1142.6160.9165.4212.3225.4242.1253.5294.6302.3303.7323.4394.2450.8692.5732.81002.21109.51141.21187.8

2106.02163.02215.12394.22639.72731.52974.23574.15667.629985.0

1750.4

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

S oc ia l Media V enures , Inc .Dibz International, Inc .S NM Global HoldingsTota l S port Online ASThe Parent Company

China Gatew ay CorporationCL ICKER Inc .

A s s oc iated Media Holdings Inc .KAB Dis tribution Inc .

Unis erve Communications Corp.B igs tring Corp.LiveWorld Inc .

Wynds torm CorporationBetaw ave Corporation

V OIS , Inc .is eemedia Inc .

Magnitude Information S ys tems Inc .Digita lPos t Interactive, Inc .

Worlds .com Inc .MOKO.mobi L imited

S NAP Interactive, Inc .CornerWorld Corporation

B right Things plcBeyond Commerce, Inc .

UOMO Media , IncIAS Energy , Inc .

S pectrumDNA , Inc .Ex tens ions , Inc .

L ingo Media CorporationJumbuck Entertainment L imitedAcceleriz e New Media, Inc .

Y nk Korea Inc .B roadWebA s ia Inc .

Dolphin Digita l Media, Inc .LookSmart, L td.Quepas a Corp.

Wiz z ard S oftw are CorporationS ocia lw is e, Inc .

NeXplore CorporationNorthgate Technologies L imited

AQ Interactive, Inc .Ngi Group Inc .Webz en Inc .

DXN Holdings BhdS park Netw orks , Inc .

Eolith Co. Ltd.Grav ity Co. , Ltd

PNI Digita l Media Inc .Frogs ter Interactive Pic tures AG

GeoS entric OyjFluid Mus ic Canada, Inc .

Digita lTow n, Inc .HanbitS oft, Inc .Cyberplex Inc .

TheS treet.com, Inc .Tree.Com, Inc .

Myriad Group AGNeuL ion Incorporated

GameOn Co Ltd.Y edangOnline Corp.A ctoz S of t Co. , Ltd.

OAO RBC Information S ys temsDADA S pAThe9 L imited

Openw ave S ys tems Inc .Gamania Digita l Enterta inment Co. ,

X ING AGCDC Corp.

GungHo Online Entertainment, Inc .G igaMedia Ltd.

S K Communications Co. , Ltd.NetDragon WebS oft, Inc .

S hutterf ly , Inc .United Online Inc .

NEOWIZ Games CorporationMix i, Inc .

V a lueClick Inc .K ings of t Co. Ltd.

Chines e Gamer InternationalGiant Interactive Group, Inc .

Changyou.com L imitedPerfect World Co. , L td.

Open Tex t Corp.Gree, Inc .

S ohu.com Inc .IAC/InterA ctiveCorp.

Modern Times Group Mtg ABS handa Interactive Entertainment

Neteas e.com Inc .Tencent Holdings Ltd.

Figure 8. Market Cap Ranking Source. Capital IQ

TEV/Revenue (LTM) averages 5.4x: The overall average TEV/Revenue (LTM) multiple for our group is 5.4x (vs. 5.2x last week) (Figure 9). Three companies trade at more than 25x revenue – Bigstring Corp. (OTCBB:BSGC) at 34.6x, Dolphin Digital Media, Inc. (OTCBB:DPDM) at 38.6x, and NeXplore Corporation (OTCPK:NXPC) at 49.2x. The median of 2.1x is up from 1.7x last week. Note that we exclude multiples greater than 50x. Twenty-seven companies have multiples under 1.5x.

TEV/LTM R evenue (x)

0.2 0.2 0.2 0.3 0.4 0.4 0.4 0.6 0.6 0.6 0.7 0.7 0.7 0.8 0.9 0.9 1.0 1.0 1.0 1.1 1.1 1.2 1.3 1.5 1.6 1.7 1.7 1.8 1.8 2.1 2.1 2.3 2.4 2.7 2.9 2.9 3.2 3.4 3.5 3.6 4.1 4.1 4.4 4.5 4.6 4.6 5.26.4 6.7 6.7 7.6 8.3 8.8

11.4 12.112.6

15.015.6

18.1

23.7

34.6

38.6

49.2

Average, 5.4

0.0

10.0

20.0

30.0

40.0

50.0

60.0

Uniserve Communications Corp.

CLICKER Inc.

The Parent Company

TheStreet.com, Inc.

Northgate Technologies Limited

GameOn Co Ltd.

Tree.Com, Inc.

Openwave Systems Inc.

Cyberplex Inc.

Jumbuck Entertainment Limited

Perfect World Co., Ltd.

DXN Holdings Bhd

IAC/InterActiveCorp.

CDC Corp.

Spark Networks, Inc.

DADA SpA

HanbitSoft, Inc.

United Online Inc.

Actoz Soft Co., Ltd.

SNM Global Holdings

SNAP Interactive, Inc.

Beyond Commerce, Inc.

GigaMedia Ltd.

Ynk Korea Inc.

Gamania Digital Entertainment Co., Ltd.

SK Communications Co., Ltd.

ValueClick Inc.

Shutterfly, Inc.

Modern Times Group Mtg AB

iseemedia Inc.

YedangOnline Corp.

GungHo Online Entertainment, Inc.

Myriad Group AG

PNI Digital Media Inc.

Open Text Corp.

NetDragon WebSoft, Inc.

MOKO.mobi Limited

XING AG

NEOWIZ Games Corporation

Eolith Co. Ltd.

CornerWorld Corporation

NeuLion Incorporated

Sohu.com Inc.

Social Media Venures, Inc.

Wizzard Software Corporation

Total Sport Online AS

Accelerize New Media, Inc.

Frogster Interactive Pictures AG

Mixi, Inc.

DigitalPost Interactive, Inc.

Changyou.com Limited

Kingsoft Co. Ltd.

Lingo Media Corporation

Fluid Music Canada, Inc.

GeoSentric Oyj

UOMO Media, Inc

Gree, Inc.

Associated Media Holdings Inc.

Chinese Gamer International

Tencent Holdings Ltd.

Bigstring Corp.

Dolphin Digital Media, Inc.

NeXplore Corporation

Figure 9. 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 10 shows the average TEV/Revenue multiples by stock exchange. The OTCBB has the largest number of companies (18), trading at an average multiple of 10.1x (vs. 11.5x last week). On a geographic basis, the United States has the most companies (38), trading at an average of 7.4x revenue (vs. 5.6x last week) (Figure 11). Ten of the companies are Canadian (average 4.3x revenue).

Average TEV/LTM Revenue - By Exchange

0.4 0.00.00.4

0.70.9

1.81.92.12.22.32.42.7

3.44.64.95.45.6

9.810.1

11.611.6

12.1

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

HLS

E

SE

HK

OT

CB

B

OT

CP

K

GT

SM

TS

E

TS

X

XT

RA

OT

CN

O

TS

XV

AM

EX

SW

X

OS

E

KO

SE

NasdaqG

S

AS

X

OM

CM

KLS

E

BS

E

NasdaqG

M

RT

S

AIM

1 3 18 11 2 5 4 2 1 4 2 1 1 6 14 2 1 1 1 1 5 1 1

(x)

# Companies

Average TEV/LTM Revenue - By Country

0.4 0.0 0.00.8 0.7

0.91.81.92.22.4

4.34.64.94.97.0

7.47.9

12.1

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

Fin

land

Chin

a

Unite

d

Taiw

an

Japan

Germ

any

Norw

ay

Canada

Sw

itzerland

South

Austr

alia

Sw

eden

Italy

Ho

ng K

ong

Mala

ysia

India

Russia

Unite

d

1 10 38 3 6 2 1 10 1 8 2 1 1 1 1 1 1 1

(x)

# Companies

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

TEV/EBITDA (LTM) averages 13.6x: The average multiple for the 36 companies with positive EBITDA (and multiples under 100x) is 13.6x LTM EBITDA (vs. 13.1x last week), led by Tencent Holdings (SEHK-700) 43.4x multiple (Figure 12). Eleven companies have EBITDA multiples under 7x. The median multiple is 10.7x (vs. 10.6x last week).

TEV/LTM EB ITDA (x)

1.2 1.5 1.74.0 4.0 4.3 4.7 4.9 5.8 6.7

8.7 9.6 9.8 9.9 9.9 10.2 10.4 10.911.6 11.7 11.8 12.4

13.1 14.2 14.3

18.7 18.8 19.7

23.8 24.9 25.026.1

32.2

43.0

48.4

A verage, 13.6

0.0

10.0

20.0

30.0

40.0

50.0

60.0



GameOn Co Ltd.




United Online Inc.

DXN Holdings Bhd

Cyberplex Inc.

DADA SpA


TheStreet.com, Inc.

ValueClick Inc.

YedangOnline Corp.


Sohu.com Inc.


Open Text Corp.

CDC Corp.


XING AG



Shutterfly, Inc.

Ynk Korea Inc.

Kingsoft Co. Ltd.


Mixi, Inc.

Openwave Systems Inc.

PNI Digital Media Inc.

Gree, Inc.

SK Communications Co., Ltd.


HanbitSoft, Inc.


Figure 12. TEV/EBITDA Ranking Source. Capital IQ

TEV/EBITDA (LTM) by country/exchange: Figure 13 shows the average TEV/EBITDA multiples by stock exchange. The OTCBB has the largest number of companies (18), trading at an average multiple of 4.0x. On a geographic basis, the United States has the most companies (38), trading at an average of 11.1x EBITDA (Figure 14). Ten of the companies are Canadian (average 13.9x EBITDA).

Average TEV/LTM EBITDA - By Exchange

0.31.54.04.04.95.8

6.79.610.411.711.811.8

15.519.3

20.524.9

25.7

0.0

5.0

10.0

15.0

20.0

25.0

30.0

SE

HK

TS

XV

GT

SM

KO

SE

TS

E

XT

RA

NasdaqG

S

OM

OS

E

NasdaqG

M

CM

TS

X

KLS

E

AM

EX

OT

CB

B

AS

X

RT

S

3 4 2 6 5 2 14 1 1 5 1 4 1 2 18 2 1

(x)

# Companies

Average TEV/LTM EBITDA - By Country

1.5 0.00.3

4.96.7

11.111.611.711.813.914.2

16.8

19.3

20.5

0.0

5.0

10.0

15.0

20.0

25.0

Taiw

an

South

Kore

a

Chin

a

Japan

Canada

Germ

any

Sw

eden

Hon

g K

ong

Unite

d

Sta

tes

Italy

Mala

ysia

Austr

alia

Russia

Sw

itzerland

3 8 10 6 10 2 1 1 38 1 1 2 1 1

(x)

# Companies

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

P/E (LTM) averages 19.2x: The average multiple for the 33 companies with positive earnings (and multiples under 100x) is 19.2x LTM EPS (vs. 18.4x last week), led by GungHo Online Entertainment’s (OSE:3765) 67.3x multiple (Figure 15). Eleven companies have P/E multiples under 10x. The median is 13.2x.

P/E LTM (x)

2.4 2.6 3.1 3.24.9

6.6 6.89.6 10.9 12.0 12.0 12.4 12.9 13.2 14.2 14.5 15.6 16.1

20.0 20.5 20.922.8

26.0

36.938.6

42.2

50.152.3

61.2

67.3

Average, 19.2

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

The9 Limited

Shanda Interactive Entertainment Ltd.


Netease.com Inc.


DXN Holdings Bhd

Cyberplex Inc.


GameOn Co Ltd.

GigaMedia Ltd.

YedangOnline Corp.



HanbitSoft, Inc.



Sohu.com Inc.


Worlds.com Inc.



Kingsoft Co. Ltd.

XING AG

Open Text Corp.



Mixi, Inc.

Gree, Inc.



Figure 15. P/E Ranking Source. Capital IQ

P/E (LTM) by country/exchange: Figure 16 shows the average P/E multiples by stock exchange. The OTCBB has the largest number of companies (18), trading at an average multiple of 14.8x. On a geographic basis, the United States has the most companies (38), trading at an average of 13.7x earnings (Figure 17). Ten of the companies are Canadian (average 21.9x EPS).

Average P/E - By Exchange

0.02.1

4.96.66.811.512.414.2

14.821.1

26.031.533.4

37.8

67.3

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

OS

E

TS

E

SE

HK

GT

SM

XT

RA

KO

SE

OT

CB

B

OM

AM

EX

NasdaqG

S

TS

X

KLS

E

AS

X

NY

SE

NasdaqG

M

1 5 3 2 2 6 18 1 2 14 4 1 2 1 5

(x)

# Companies

Average P/E - By Country

0.00.0

4.96.6

13.714.114.214.4

21.925.026.0

45.1

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

Japan

Germ

any

Taiw

an

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# Companies

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

UP CO MI NG EVE NTS

Earnings CalendarCompany Date & Time Quarter Conf Call Details

Myriad G roup AG (S WX:MY R N) W ednesday, S eptember 23, 2009 9:00 AM (C E T ) Q2 2009 NA

T ree.C om, Inc. (NasdaqGM:T R E E ) F riday, October 30, 2009 11:00 AM (E DT ) Q3 2009 888-428-9470

Figure 18. Earnings Calendar Source. Company reports


Price Performance

Company Name Currency Ticker E xchange USD Market Cap ($m) Current Price 1 Wk 1 Mth 3 Mth 6 Mth 1 Yr 52 Week

Accelerize New Media, Inc. US D AC LZ OTC B B 18.2 0.65 8.3% 14.0% 62.5% 225.0% 18.2% 0.0%

Actoz S oft C o. , L td. K R W A052790 K OS E 142.6 19,950 10.8% 0.3% -23.6% 80.5% 123.4% -44.6%

AQ Interactive, Inc. J P Y 3838 T S E 31.0 52,500 -1.1% 5.6% -29.6% 60.6% -23.2% -36.7%

Associa ted Media Holdings Inc. US D AS MH OTC P K 0.6 0.01 -30.0% -30.0% 833.3% 180.0% -30.0% -72.0%

B igs tring Corp. US D B S GC OTC B B 1.1 0.02 -2.6% 6.7% -32.1% 26.7% -52.5% -70.8%

B etawave C orporation US D BWAV OTC B B 2.0 0.07 0.0% -12.5% -22.2% -63.2% -76.7% -79.4%

B eyond Commerce, Inc. US D B YOC OTC B B 7.9 0.17 -15.0% -12.8% -76.7% -67.3% -93.2% -93.5%

B right T hings plc G B P AIM:BG T AIM 6.0 0.01 -0.4% -1.8% 5.8% -8.3% 9.9% -44.3%

B roadW ebAs ia Inc. US D BW BA OTC P K 19.5 0.23 -22.8% -22.8% -54.9% -77.2% -84.7% -92.1%

CDC C orp. US D CHIN.A NasdaqG S 294.6 2.78 0.4% 9.0% 105.9% 157.4% 29.9% -29.1%

C hangyou.com L imited US D CYOU NasdaqG S 2,106.0 38.29 -5.6% -0.9% 4.7% NM NM -20.8%

C hina Gateway C orporation US D CGW Y OTC P K 0.3 0.02 -25.0% 650.0% 650.0% 650.0% -50.0% -57.1%

C hines e Gamer International TWD GT S M:3083 G T S M 1,187.8 458.00 10.6% 24.5% 26.2% 142.3% 627.0% -11.8%

C LICK E R Inc. US D CLK Z OTC B B 0.4 0.01 -9.1% 0.0% 78.6% -50.0% -98.0% -98.8%

C ornerW orld C orpora tion US D CW R L OTC B B 5.7 0.06 0.0% 9.1% 0.0% -57.1% -70.0% -87.2%

C yberplex Inc. C AD T S X:CX T S X 76.6 1.27 0.0% -19.6% -23.0% 67.1% 119.0% -36.2%

DADA S pA E UR CM:DA CM 165.4 6.95 -2.3% 11.6% 18.2% 42.0% -22.8% -33.7%

DXN Holdings B hd MYR DXN K LS E 39.8 0.61 4.3% 21.0% 59.2% 116.1% 59.2% -0.8%

Dibz International, Inc. US D DIB Z OTC P K 0.0 0.00 20.0% NM 20.0% -88.0% -97.6% -97.6%

DigitalP os t Interactive, Inc. US D DG LP OTC B B 4.6 0.06 9.1% 0.0% 114.3% 200.0% -7. 7% -39.4%

DigitalT own, Inc. US D DG TW OTC B B 72.2 2.64 76.0% 95.6% 32.0% 5.6% -12.0% -34.0%

Dolphin Digital Media, Inc. US D DP DM OTC B B 21.5 0.40 6.4% 9.6% -27.3% -33.3% -64.3% -64.6%

E olith C o. Ltd. K R W A041060 K OS E 52.6 875.00 2.3% 5.4% 4.2% 65.1% 43.4% -24.6%

E xtens ions , Inc. US D E XT I OTC P K 11.1 0.25 38.9% 212.5% 66.7% 66.7% 150.0% -75.2%

F luid Mus ic C anada , Inc. C AD T S X:FMN T S X 68.0 1.40 -5.4% -3.4% 122.2% 300.0% 4.5% -6.0%

F rogs ter Interactive P ictures AG E UR FR G XT R A 63.5 17.13 -8.8% 4.8% 115.5% 137.9% 231.3% -13.8%

G amania Digita l E nterta inment C o. , Ltd. TW D 6180 G T S M 242.1 51.70 12.5% 5.3% -9.9% 53.0% 203.2% -24.9%

G ameOn Co Ltd. J P Y 3812 T S E 105.8 100,800 0.0% -4.6% -6.6% 26.0% -25.3% -33.7%

G eoS entric Oyj E UR GE O1V HLS E 65.9 0.05 0.0% -16.7% 25.0% 25.0% 0.0% -16.7%

G iant Interactive G roup, Inc. US D GA NYS E 1,750.4 7.73 2.7% 0.7% -4.1% 11.9% 14.7% -19.2%

G igaMedia Ltd. US D G IGM NasdaqG S 303.7 5.57 15.3% 18.5% 1.1% -8.4% -28.7% -37.8%

G ravity Co. , L td US D GR V Y NasdaqGM 54.2 1.95 14.0% -21.7% 77.3% 204.7% 89.3% -25.9%

G ree, Inc. J P Y T S E :3632 T S E 2,394.2 9,850 16.6% 21.3% 47.9% 113.7% NM 0.0%

GungHo Online E nterta inment, Inc. J P Y 3765 OS E 302.3 243,000 -6.1% -0.2% 3.8% 112.2% 20.2% -13.2%

HanbitS oft, Inc. K R W A047080 K OS E 73.6 4,050 -3.6% 1.0% -6.9% 21.6% 24.0% -39.0%

IAC /InterActiveC orp. US D IAC I NasdaqG S 2,731.5 20.63 6.3% 5.8% 30.2% 38.6% 21.4% -1.1%

IAS E nergy, Inc. US D IAS A.E OTC B B 10.6 0.15 0.0% 0.0% -25.0% 233.3% -9. 1% -46.4%

is eemedia Inc. C AD IE E T S XV 4.3 0.09 50.0% 38.5% -10.0% 0.0% -10.0% -43.8%

J umbuck E nterta inment L imited AUD AS X:JMB AS X 16.8 0.40 8.1% 11.1% 2.6% -20.0% -32.2% -34.4%

K AB Dis tribution Inc. C AD T S X:K AB T S X 0.6 0.01 -99.2% -99.2% -99.2% -98.6% -99.4% -99.2%

K ingsoft C o. Ltd. HKD 3888 S E HK 1,141.2 8.11 -1.9% 0.4% 57.5% 170.3% 265.3% -14.4%

L ingo Media C orpora tion C AD T S XV :LM T S XV 11.5 1.00 0.0% 6.4% 0.0% 17.6% -43.5% -43.5%

L iveW orld Inc. US D LVWD OTC P K 1.5 0.05 25.0% 0.0% -50.0% -66.7% -79.2% -80.0%

LookS mart, L td. US D LOOK NasdaqGM 21.9 1.28 9.4% -2.3% 2.4% 28.0% -52.8% -54.1%

Magnitude Information S ys tems Inc. US D MAGY OTC B B 4.5 0.01 8.7% 53.8% -16.7% -41.2% -52.4% -66.7%

Mixi, Inc. J P Y 2121 T S E 1,002.2 599,000.00 6.4% -0.5% 21.0% 84.3% -21.3% -25.5%

Modern T imes G roup Mtg AB S E K MTG B OM 2,974.2 312.50 7.9% 3.6% 55.1% 117.0% 18.6% -4.4%

MOKO.mobi L imited AUD MK B AS X 5.2 0.07 0.0% 0.0% -6.7% -6.7% 27.3% -30.0%

Myriad G roup AG CHF MYR N S WX 92.0 4.46 -0.9% 2.8% -7.1% 11.5% -51.5% -53.1%

NE OW IZ G ames Corpora tion K R W A095660 K OS E 732.8 42,000.00 7.4% 36.6% 23.7% 101.4% 306.8% -5.6%

NetDragon W ebS oft, Inc. HKD 777 S E HK 394.2 5.78 -1.4% -6.0% 15.4% 37.9% 18.0% -19.2%

Neteas e. com Inc. US D NT E S NasdaqG S 5,667.6 43.79 2.9% 3.0% 28.8% 75.9% 95.9% -6.7%

NeuLion Incorpora ted C AD T S X:NLN T S X 98.3 0.93 -9.7% -12.3% 31.0% 111.4% NM -28.5%

NeXplore C orpora tion US D NXP C OTC P K 30.7 0.55 -8.3% -8.3% -21.4% -26.7% -52.2% -62.1%

Ngi G roup Inc. J P Y 2497 T S E 36.0 26,750.00 -12.0% -14.4% -22.7% 52.1% -77.1% -79.0%

Northgate T echnologies L imited INR 590057 B S E 31.0 42.65 -1.2% 20.5% 11.2% 32.0% -83.5% -84.1%

Open T ext Corp. US D OT E X NasdaqG S 2,215.1 39.45 10.6% 2.9% 13.2% 13.0% 11.2% -1.8%

Openwave S ys tems Inc. US D OPW V NasdaqG S 225.4 2.70 -5.9% -7.2% 39.2% 225.3% 132.8% -13.7%

P erfect W orld Co. , L td. US D PW R D NasdaqG S 2,163.0 43.98 1.3% 12.6% 47.4% 227.5% 88.7% -2.6%

P NI Digital Media Inc. C AD T S XV :P N T S XV 59.9 1.89 0.5% 17.4% 17.4% 27.7% -9. 1% -22.9%

Quepasa Corp. US D QP S A OTC B B 22.1 1.74 -0.6% 16.0% 155.9% 70.6% -45.6% -46.5%

OAO R B C Information S ys tems US D R B C I R T S 160.9 1.16 10.5% 10.5% 16.0% 262.5% -78.7% -85.2%

S handa Interactive E nterta inment L td. US D S NDA NasdaqG S 3,574.1 53.53 4.1% 10.2% 5.3% 35.9% 98.8% -17.6%

S hutterfly, Inc. US D S F LY NasdaqG S 450.8 17.71 19.2% 16.8% 35.1% 99.0% 95.9% -2.3%

S K C ommunications C o. , Ltd. K R W A066270 K OS E 323.4 9, 310.00 3.3% -0.9% -13.8% 14.7% -21.8% -27.5%

S NAP Interactive, Inc. US D S T V I OTC B B 5.4 0.50 25.0% 25.0% -23.1% -2.0% -43.8% -53.7%

S NM G loba l Holdings US D S NMN OTC P K 0.0 0.00 81.0% 90.0% -45.7% 280.0% -99.1% -99.4%

S ocial Media V enures , Inc. US D S MV I OTC P K 0.0 0.08 0.0% -27.3% 700.0% -93.3% -85.5% -98.4%

S ocialwis e, Inc. US D S C LW OTC B B 25.7 0.58 18.4% -3.3% -15.9% 45.0% -73.4% -77.3%

S ohu.com Inc. US D S OHU NasdaqG S 2,639.7 68.86 4.6% 7.4% 11.0% 65.2% 16.6% -4.7%

S park Networks , Inc. US D LOV AME X 45.3 2.20 0.9% 4.8% -5.2% -6.0% -44.4% -47.4%

S pectrumDNA, Inc. US D S P XA OTC B B 10.7 0.22 0.0% -4.3% -4.3% 15.8% -45.0% -51.1%

T encent Holdings Ltd. HKD 700 S E HK 29,985.0 128 0.9% 11.1% 50.2% 131.9% 126.1% -2.1%

T he P a rent Company US D K IDS .Q OTC P K 0.2 0.01 -9.1% -33.3% -60.0% -33.3% -99.1% -99.4%

T he9 L imited US D NC TY NasdaqG S 212.3 8.46 3.5% -1.1% -18.5% -34.0% -54.3% -56.4%

T heS treet.com, Inc. US D T S CM NasdaqGM 83.2 2.72 2.6% 17.7% 32.0% 30.1% -54.7% -60.5%

T ota l S port Online AS NOK TOS O OTCNO 0.1 0.03 0.0% 0.0% 0.0% -25.0% -40.0% 0.0%

T ree.C om, Inc. US D TR E E NasdaqGM 84.2 7.79 -0.5% -16.2% -18.0% 55.8% 40.6% -40.4%

Unis erve Communications Corp. C AD T S XV :US S T S XV 0.9 0.04 -11.1% -11.1% -42.9% -20.0% -76.5% -82.6%

United Online Inc. US D UNTD NasdaqG S 692.5 8.26 5.9% 12.5% 44.2% 85.2% -15.1% -22.1%

UOMO Media , Inc US D UOMO OTC B B 10.5 0.12 -11.7% -22.9% -21.9% -6.9% -58.3% -88.6%

V alueC lick Inc. US D VC LK NasdaqG S 1,109.5 12.73 13.8% 16.5% 21.7% 58.5% 25.5% -0.1%

VOIS , Inc. US D VOIS OTC B B 2.5 0.00 -25.0% -50.0% -66.7% 150.0% -70.3% -87.0%

W ebzen Inc. US D W ZE N NasdaqGM 36.2 3.05 3.7% 7.0% -7.6% 60.5% 99.3% -34.8%

W izzard S oftware Corporation US D W ZE AME X 23.2 0.46 -16.4% 0.0% -28.1% 2.8% -68.9% -73.4%

W orlds .com Inc. US D WDDD OTC B B 5.2 0.10 0.0% 11.1% 0.0% -44.4% -70.6% -71.4%

W ynds torm C orporation US D W YND OTC P K 1.8 0.10 0.0% 0.0% 185.7% -16.7% -54.5% -83.3%

XING AG E UR O1BC XT R A 253.5 32.75 -0.3% 19.1% 10.5% 15.3% 10.6% -4.8%

Y edangOnline C orp. K R W A052770 K OS E 112.1 9, 020.00 -2.0% 5.9% 9.2% 3.9% 24.8% -27.3%

Y nk K orea Inc. K R W A023770 K OS E 18.7 4, 215.00 3.8% 3.7% -32.0% 9.6% -64.4% -66.0%

High 81.0% 650.0% 833.3% 650.0% 627.0% 0.0%

Low -99.2% -99.2% -99.2% -98.6% -99.4% -99.4%

Average 769.5 2.7% 13.0% 35.2% 58.4% 6.0% -43.4%Median 0.2% 3.0% 4.4% 32.0% -21.8% -38.4%

Figure 19. Price Performance Source. Capital IQ

Comparable Company Analys is > Web 2.0Valuation Multiples

Company Name Sector Country

Primary

E xchange Ticker

USD Market

Cap ($m)

TE V/LTM

Revenue

TEV/ NTM

Revenue

TEV/LTM

EB ITDA

TEV/NTM

E B ITDA P/LTM EPS P/NTM EPS P/TangBV

Accelerize New Media , Inc. Direct Marketing United S ta tes OTCB B AC LZ 18.2 5. 2x - - - - - -

Actoz S oft C o. , Ltd. G aming S outh K orea KOS E A052790 142. 6 1. 0x - 4.3x - 20.5x - 2. 3x

AQ Interactive, Inc. G aming J apan T S E 3838 31. 0 0. 2x - - - - - 0. 5x

As sociated Media Holdings Inc. Mobile United S ta tes OTCP K AS MH 0.6 15.6x - - - - - -

B igs tring C orp. Ins tant Mes saging United S ta tes OTCB B B S GC 1.1 34.6x - - - - - -

B etawave Corporation Media United S ta tes OTCB B BW AV 2.0 - - - - - - 0. 4x

B eyond Commerce, Inc. S ocia l Network ing United S ta tes OTCB B B YOC 7.9 1. 2x - - - - - -

B right T hings plc S ocial Network ing United K ingdom AIM AIM:B G T 6.0 - - - - - - -

B roadWebAs ia Inc. S ocia l Network ing United S ta tes OTCP K BW BA 19.5 - - - - - - -

C DC C orp. G aming Hong K ong NasdaqGS CHIN .A 294. 6 0. 8x 0. 9x 11. 6x 8.1x - - -

C hangyou. com L imited G aming C hina Nas daqGS CYOU 2,106. 0 7. 6x 5. 9x 12. 4x 10.2x 14.5x 12.9x 14.3x

C hina G ateway Corporation Mobile United S ta tes OTCP K CGW Y 0.3 0. 0x - - - - - -

C hinese G amer International G aming T aiwan GT S M GT S M:3083 1,187. 8 18.1x - 32. 2x - 42.2x - 20.4x

C LIC K E R Inc. Direct Marketing United S ta tes OTCB B CLK Z 0.4 0. 2x - - - - - -

C ornerW orld C orpora tion Content United S ta tes OTCB B CW R L 5.7 4. 1x - - - - - -

C yberplex Inc. Advertis ing C anada T S X T S X:C X 76. 6 0. 6x 0. 5x 5.8x - 6. 8x 7. 7x 3. 0x

DADA S pA S ocial Network ing Ita ly CM CM:DA 165.4 0. 9x - 6.7x - - - -

DXN Holdings B hd S ocial Network ing Ma lays ia K LS E DXN 39.8 0. 7x - 4.9x - 6. 6x - 0. 8x

Dibz International, Inc. S NS Apps United S ta tes OTCP K DIB Z 0. 0 - - - - - - -

Digita lP os t Interactive, Inc. C ontent United S ta tes OTCB B DGLP 4.6 6. 7x - - - - - -

Digita lT own, Inc. S ocia l Network ing United S ta tes OTCB B DG TW 72.2 - - - - - - -

Dolphin Digita l Media , Inc. S ocia l Network ing United S ta tes OTCB B DPDM 21.5 38.6x 1. 4x - - - 1. 6x -

E olith C o. Ltd. G aming S outh K orea KOS E A041060 52. 6 3. 6x - - - - - 4. 8x

E xtens ions , Inc. C ontent United S ta tes OTCP K E XT I 11. 1 - - - - - - -

F luid Mus ic C anada, Inc. Media United S ta tes T S X T S X:FMN 68.0 11.4x 10.2x - - - - 6. 3x

F rogs ter Interactive P ictures AG G aming G ermany XT R A F R G 63.5 6. 4x - - - - - 7. 9x

G amania Digita l E nterta inment C o. , L td. G aming T aiwan GT S M 6180 242. 1 1. 6x - 8.7x - 20.9x - 3. 1x

G ameOn C o L td. G aming J apan T S E 3812 105. 8 0. 4x - 1.7x - 10.9x - 1. 3x

G eoS entric Oyj Mobile F inland HLS E GE O1V 65.9 12.1x - - - - - 54.3x

G iant Interactive G roup, Inc. G aming C hina NYS E GA 1,750. 4 - - - - 2. 1x 14.0x 0. 3x

G igaMedia L td. G aming T aiwan NasdaqGS G IGM 303.7 1. 3x 1. 2x - 5.9x 12.0x 11.2x 2. 6x

G ravity C o. , Ltd G aming S outh K orea Nas daqGM GR V Y 54.2 - - - - 0. 0x - 0. 0x

G ree, Inc. S ocia l Network ing J apan T S E T S E :3632 2,394. 2 15.0x - 25. 0x - 52.3x - 24.2x

G ungHo Online E nterta inment, Inc. Media J apan OS E 3765 302. 3 2. 3x - 10. 4x - 67.3x - 23.2x

HanbitS oft, Inc. G aming S outh K orea KOS E A047080 73. 6 1. 0x - 43. 0x - 13.2x - 2. 1x

IAC /InterActiveCorp. Media United S ta tes Nas daqGS IAC I 2,731. 5 0. 7x 0. 7x 18. 8x 5.8x 12.9x 39.2x 1. 3x

IAS E nergy, Inc. V ideo C anada OTCB B IAS A.E 10. 6 - - - - - - -

is eemedia Inc. C ontent C anada T S XV IE E 4. 3 2. 1x - - - - - 3. 5x

J umbuck E nterta inment L imited S ocial Network ing Aus tralia AS X AS X:JMB 16.8 0. 6x - 1.5x - 4. 9x - 1. 6x

K AB Dis tribution Inc. C ontent C anada T S X T S X:K AB 0.6 - - - - - - 0. 0x

K ingsoft C o. L td. G aming C hina S E HK 3888 1,141. 2 8. 3x - 18. 7x - 22.8x - 6. 3x

L ingo Media C orporation Learning C anada T S XV T S XV :LM 11.5 8. 8x - - - - - 20.5x

L iveW orld Inc. S ocia l Network ing United S ta tes OTCP K LVW D 1.5 0. 0x - - - - - 0. 7x

LookS mart, Ltd. Direct Marketing United S ta tes Nas daqGM LOOK 21.9 - - - - - - 0. 8x

Magnitude Information S ys tems Inc. S ocia l Network ing United S ta tes OTCB B MAG Y 4.5 - - - - - - -

Mixi, Inc. S ocia l Network ing J apan T S E 2121 1,002. 2 6. 7x - 19. 7x - 50.1x - 6. 8x

Modern T imes G roup Mtg AB Media S weden OM MTG B 2,974. 2 1. 8x - 11. 7x - 14.2x - -

MOK O.mobi L imited S ocial Network ing Aus tralia AS X MK B 5.2 3. 2x - - - - - 3. 6x

Myriad G roup AG Mobile S witzerland S WX MY R N 92.0 2. 4x - - - - - 4. 0x

NE OW IZ G ames C orporation G aming S outh K orea KOS E A095660 732. 8 3. 5x - 13. 1x - 38.6x - 19.5x

NetDragon W ebS oft, Inc. G aming C hina S E HK 777 394. 2 2. 9x - 9.9x - 16.1x - 2. 1x

Netease.com Inc. G aming C hina Nas daqGS NT E S 5,667. 6 - - - - 3. 2x 17.5x 0. 9x

NeuL ion Incorporated V ideo C anada T S X T S X:NLN 98.3 4. 1x - - - - - 7. 2x

NeXplore C orporation Content United S ta tes OTCP K NXP C 30.7 49.2x - - - - - -

Ngi G roup Inc. Media J apan T S E 2497 36. 0 - - - - - - 0. 7x

Northgate T echnologies L imited Direct Marketing India B S E 590057 31. 0 0. 4x - - - - - -

Open T ext C orp. C ollabora tion C anada NasdaqGS OT E X 2,215. 1 2. 9x 2. 4x 10. 9x 9.1x 36.9x 14.0x -

Openwave S ys tems Inc. Mobile United S ta tes Nas daqGS OPWV 225.4 0. 6x 0. 6x 23. 8x 5.3x - 42.2x 3. 3x

P erfect W orld C o. , Ltd. G aming C hina Nas daqGS PW R D 2,163. 0 0. 7x 3. 4x 1.2x 6.6x 3. 1x - 1. 4x

P NI Digita l Media Inc. Digita l Imaging C anada T S XV T S XV :P N 59.9 2. 7x 2. 3x 24. 9x 7.5x - 15.1x 20.8x

Quepasa C orp. S ocia l Network ing United S ta tes OTCB B QP S A 22.1 - - - - - - -

OAO R B C Information S ys tems Media R us s ia R T S R B C I 160. 9 0. 0x - 0.3x - - - -

S handa Interactive E nterta inment Ltd. G aming C hina Nas daqGS S NDA 3,574. 1 - - - - 2. 6x 13.7x 1. 0x

S hutterfly, Inc. Digita l Imaging United S ta tes Nas daqGS S FLY 450. 8 1. 8x 1. 7x 14. 2x 8.9x - - 2. 7x

S K C ommunications C o. , Ltd. S earch S outh K orea KOS E A066270 323. 4 1. 7x - 26. 1x - - - -

S NAP Interactive, Inc. Dating United S ta tes OTCB B S T V I 5. 4 1. 1x - 4.0x - 9. 6x - 3. 0x

S NM G lobal Holdings Media United S ta tes OTCP K S NMN 0.0 1. 1x - - - - - -

S ocia l Media V enures , Inc. S ocia l Network ing United S ta tes OTCP K S MV I 0. 0 4. 5x - - - - - -

S ocia lwise, Inc. S ocia l Network ing United S ta tes OTCB B S C LW 25.7 - - - - - - -

S ohu. com Inc. G aming C hina Nas daqGS S OHU 2,639. 7 4. 4x 3. 8x 10. 2x 8.5x 15.6x 18.7x 5. 2x

S park Networks , Inc. S ocia l Network ing United S ta tes AME X LOV 45.3 0. 9x - 4.0x - 12.4x - 46.3x

S pectrumDNA, Inc. Media United S ta tes OTCB B S P XA 10.7 - - - - - - -

T encent Holdings L td. P ortal C hina S E HK 700 29,985. 0 23.7x - 48. 4x - 61.2x - 27.3x

T he P a rent C ompany Media United S ta tes OTCP K K IDS .Q 0.2 0. 2x 0. 2x - 12.8x - - -

T he9 L imited G aming C hina Nas daqGS NCT Y 212. 3 - - - - 2. 4x - 0. 1x

T heS treet. com, Inc. Media United S ta tes Nas daqGM T S CM 83.2 0. 3x 0. 3x 9.6x - - - 1. 1x

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

T ree.C om, Inc. P ortal United S ta tes Nas daqGM TR E E 84. 2 0. 4x 0. 4x - 8.1x - 50.1x 1. 1x

Uniserve C ommunica tions C orp. S ocia l Network ing C anada T S XV T S XV :US S 0. 9 0. 2x - - - - - -

United Online Inc. Media United S ta tes Nas daqGS UNTD 692.5 1. 0x 1. 0x 4.7x 4.0x - 6. 3x -

UOMO Media , Inc Media C anada OTCB B UOMO 10.5 12.6x - - - - - -

V a lueC lick Inc. Media United S ta tes Nas daqGS VC LK 1,109. 5 1. 7x 1. 8x 9.8x 7.0x - 19.9x 7. 2x

VO IS , Inc. S ocia l Network ing United S ta tes OTCB B VOIS 2. 5 - - - - - - 15.8x

W ebzen Inc. G aming S outh K orea Nas daqGM WZE N 36.2 - - - - 0. 0x - 0. 0x

W izzard S oftware C orpora tion P odcas ting United S ta tes AME X WZE 23.2 4. 6x - - - - - -

W orlds .com Inc. C ontent United S ta tes OTCB B WDDD 5.2 - - - - 20.0x - -

W ynds torm Corpora tion Content United S ta tes OTCP K WYND 1.8 - - - - - - -

X ING AG S ocial Network ing G ermany XT R A O1BC 253. 5 3. 4x - 11. 8x - 26.0x - 8. 1x

Y edangOnline C orp. G aming S outh K orea KOS E A052770 112. 1 2. 1x - 9.9x - 12.0x - 3. 8x

Y nk K orea Inc. G aming S outh K orea KOS E A023770 18. 7 1. 5x - 14. 3x - - - 0. 9x

H igh 29,985. 0 49.2x 10.2x 48. 4x 12.8x 67.3x 50.1x 54.3x

Low 0.0 0. 0x 0. 2x 0.3x 4.0x 0. 0x 1. 6x 0. 0x

Average 769.5 5.4x 2.2x 13.6x 7.7x 19.2x 18.9x 7.6xMedian 48. 9 2. 1x 1. 3x 10. 7x 7.8x 13.2x 14.0x 3. 0x

Figure 20. Valuation Comparison Source. Capital IQ


Summary by Country

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

United S tates 38 China 49,633.4 China 4,963.3 China 4,152.4 China 2,070.2 China 48.8%

Canada 10 United S tates 5, 811.3 S weden 2,974.2 United S ta tes 3, 887.3 S weden 304.6 Aus tra lia 42.8%

China 10 J apan 3,871.5 J apan 645.3 S weden 1,982.6 United S tates 290.0 T aiwan 37.1%

S outh K orea 8 S weden 2,974.2 T a iwan 577.9 C anada 1,015.0 C anada 200.0 J apan 24.2%

J apan 6 Canada 2,488.2 Hong K ong 294.6 S outh K orea 707.3 J apan 186.0 S weden 15.4%

Taiwan 3 T aiwan 1,733.6 C anada 248.8 J apan 634.4 S outh K orea 121.9 Ma lays ia 14.4%

Aus tra lia 2 S outh K orea 1,527.4 S outh K orea 190.9 T aiwan 385.8 T a iwan 59.8 Ita ly 13.1%

Germany 2 Germany 317.0 Ita ly 165.4 Hong K ong 361.6 Ita ly 31.9 R us s ia 13.1%

S witzerland 1 Hong K ong 294.6 R us s ia 160.9 Ita ly 242.6 Hong K ong 25.1 S outh K orea 12.7%

Hong K ong 1 Ita ly 165.4 G ermany 158.5 R us s ia 156.2 R us s ia 20.4 Hong K ong 6.9%

F inland 1 R us s ia 160.9 United S tates 152.9 India 82.8 G ermany 12.5 S witzerland 1.9%

Italy 1 S witzerland 92.0 S witzerland 92.0 Malays ia 77.1 Ma lays ia 11.1 C anada -8. 5%

United K ingdom 1 F inland 65.9 F inland 65.9 G ermany 68.7 Aus tra lia 4. 5 G ermany -9. 1%

India 1 Ma lays ia 39.8 Ma lays ia 39.8 S witzerland 40.0 S witzerland 0.8 United S tates -21.9%

S weden 1 India 31.0 India 31.0 Aus tra lia 17.8 Norway -1. 1 India -50.0%

R us s ia 1 Aus tra lia 22.1 Aus tra lia 11.0 F inland 5.5 United K ingdom -2.7 Norway -50.6%

Malays ia 1 United K ingdom 6.0 United K ingdom 6.0 Norway 2.3 F inland -17.5 United K ingdom #DIV /0!

Norway 1 Norway 0.1 Norway 0.1 United K ingdom 0.0 India -41.4 F inland #DIV /0!

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

Figure 21. Comparison by Country Source. Capital IQ

Comparable Company Analys is > Web 2.0Summary by E xchange

Company Name USD Market Cap ($m) Avg USD Market Cap ($m) USD LTM Total Rev ($m) USD LTM Total E B ITDA ($m) EB ITDA %

OTCB B 18 S E HK 31,520.4 S E HK 10,506.8 OM 1,982.6 NasdaqG S 1,796.0 NY S E 62.5%

NasdaqGS 14 NasdaqGS 24,385.7 OM 2,974.2 S E HK 540.0 S E HK 767.5 AS X 42.8%

OTCP K 11 TS E 3,569.2 NY S E 1,750.4 NasdaqGS 498.6 OM 304.6 S E HK 40.6%

KOS E 6 OM 2,974.2 Nas daqG S 1,741.8 CM 242.6 T S E 160.2 G TS M 37.1%

TS E 5 NY S E 1,750.4 G TS M 715.0 NY S E 198.5 NY S E 124.1 Nas daqG S 30.4%

NasdaqGM 5 KOS E 1,437.0 T S E 713.8 R T S 156.2 K OS E 103.2 T S E 24.6%

TS X 4 GT S M 1,430.0 OS E 302.3 OS E 116.1 G TS M 59.8 OS E 22.2%

TS XV 4 XTR A 317.0 K OS E 239.5 K OS E 106.0 CM 31.9 OM 15.4%

S E HK 3 OS E 302.3 CM 165.4 T S E 103.7 OS E 25.8 K LS E 14.4%

AME X 2 NasdaqGM 279.7 R T S 160.9 G T S M 101.1 R T S 20.4 CM 13.1%

AS X 2 TS X 243.6 XT R A 158.5 B S E 82.8 NasdaqGM 15.6 R T S 13.1%

XTR A 2 OTCB B 230.9 S WX 92.0 NasdaqGM 82.4 XT R A 12.5 K OS E 9.6%

GT S M 2 CM 165.4 HLS E 65.9 K LS E 77.1 K LS E 11.1 Nas daqGM 7.7%

S WX 1 R T S 160.9 T S X 60.9 T S X 46.4 AME X 6.2 T S XV 5.6%

HLS E 1 S WX 92.0 Nas daqGM 55.9 S W X 40.0 AS X 4.5 S WX 1.9%

CM 1 TS XV 76.6 K LS E 39.8 XTR A 34.3 S WX 0.8 XT R A -9.1%

B S E 1 AME X 68.5 AME X 34.2 AME X 27.9 OTCNO -1.1 AME X -31.8%

NY S E 1 HLS E 65.9 B S E 31.0 OT CP K 16.5 AIM -2.7 T S X -34.7%

OS E 1 OTCP K 65.8 T S XV 19.1 T S XV 12.0 T S X -4.3 OTC B B -38.8%

AIM 1 K LS E 39.8 OTC B B 12.8 AS X 8.9 T S XV -4.6 OTC P K -41.5%

OM 1 B S E 31.0 AS X 11.0 HLS E 5.5 HLS E -17.5 B S E -50.0%

R T S 1 AS X 22.1 AIM 6.0 OTCB B 2.3 OTC P K -34.1 OTCNO -50.6%

K LS E 1 AIM 6.0 OTC P K 6.0 OT CNO 2.3 B S E -41.4 AIM #DIV /0!

OT CNO 1 OTCNO 0.1 OTCNO 0.1 AIM 0.0 OTC B B -62.4 HLS E #DIV /0!

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

Figure 22. Comparison by Exchange Source. Capital IQ

Financing - Las t Three Months (US$ m)F in. Amount (Million) Type of financing

Month Company Name Country Angel/S eed Series A Series B Series C Series D Grand Total

J ul-09 Pandora Media US A 35.0 35.0

Kontera L td. Is rael 15.5 15.5

Ning US A 15.0 15.0

QuickP lay Media Canada 12.0 12.0

Causes US A 10.0 10.0

Outspark US A 8.3 8.3

ConnectE du US A 8.2 8.2

Acquia, Inc US A 8.0 8.0

SBNation US A 8. 0 8.0

MediaMath US A 6. 6 6.6

Metaversum Germany 6.3 6.3

iMemories US A 6.2 6.2

Invodo US A 6.0 6.0

J ambool US A 5.0 5.0

Quikr India Pvt. Ltd. India 4. 1 4.1

OPEN Sports network US A 4. 0 4.0

S tyleCas ter US A 4.0 4.0

Nexage US A 4. 0 4.0

TweetDeck UK 3. 2 3.2

Bus ca US A 2.6 2.6

Akademos US A 2. 5 2.5

ProtonMedia US A 2.5 2.5

iLoop Mobile US A 2. 0 2.0

Comunitae S pa in 1. 7 1.7

Aloqa Germany 1. 5 1.5

Lat49 Canada 1.5 1.5

Thread US A 1. 2 1.2

Tributes .com US A 1.2 1.2

CoTweet US A 1.1 1.1

Cellufun US A 1.0 1.0

Clikthrough US A 1.0 1.0

Cognitive Match L imited UK 1.0 1.0

BookFresh US A 0. 5 0.5

People Capital US A 0.5 0.5

Masher Media US A 0. 3 0.3

J ul-09 Total 65.0 11.1 36.8 51.5 27.0 191.4

Aug-09 Turbine US A 50.0 50.0

Smith & Tinker US A 29.0 29.0

Mint US A 14.1 14.1

Zoove US A 13.2 13.2

R ichRelevance US A 12.5 12.5

Traffiq US A 10.0 10.0

MediaMath US A 10.0 10.0

B ill.com US A 8.5 8.5

Edo Interactive US A 8. 5 8.5

InnoCentive US A 7.3 7.3

OneR iot US A 7.0 7.0

Balihoo US A 7.0 7.0

Boxee US A 6.0 6.0

Polyvore US A 5.6 5.6

Fanbase US A 5.0 5.0

MOG US A 5.0 5.0

OurS tage US A 3.0 3.0

Z2Live US A 3.0 3.0

KODA US A 3. 0 3.0

S coreloop Germany 2.8 2.8

Roblox US A 2. 2 2.2

Tremor Media US A 2.0 2.0

iS ocket US A 2.0 2.0

R ights Flow US A 1.5 1.5

Plis ta Germany 1.4 1.4

ChessCube S outh Africa 1. 3 1.3

Links ify US A 0. 5 0.5

iS yndica US A 0. 4 0.4

Aug-09 Total 25.8 11.5 77.6 43.6 63.2 221.6

Financing - Las t Three Months (US$ m)F in. Amount (Million) Type of financing

Month Company Name Country Angel/S eed Series A Series B Series C Series D Grand Total

S ep-09 Ensequence US A 20.0 20.0

InXpo US A 9.0 9.0

J obvite US A 8.3 8.3

NextB io US A 8.0 8.0

R iot Games US A 8.0 8.0

YuMe US A 5.0 5.0

Mocapay US A 3.0 3.0

Conduit Labs US A 3.0 3.0

Fwix US A 2.8 2.8

MashLogic US A 2.5 2.5

Greystripe US A 2.0 2.0

FourSquare US A 1.4 1.4

EduFire US A 1.3 1.3

S ep-09 Total 16.9 19.3 18.0 20.0 74.2

Grand Total 90.8 39.5 133.6 113.1 110.2 487.1

Figure 23. Financing, Last Three Months Source. Company reports

Company Descriptions - Current Month Capital Market ActivityCompany HQ Webs ite Des cription

E duFire United S ta tes www.edufire. com E ducation R evolution, Inc. operates as an online community that provides online live video tutoring s ervices . It offers tutoring s ervices for

s tudents covering various languages and preparing s tudents for exams on video chat s es s ions . The company was founded in 2007 and is

based in S anta Monica , C alifornia .

E nsequence United S ta tes www.ensequence.com E nsequence, Inc. offers interactive televis ion and digita l broadcas ting s ervices . T he company’s platform enables online download, online

advertis ing, and viewer response measurement s ervices . Additionally, it provides s ys tem implementation and integration, audience

measurement, and cus tomer care s ervices . T he company’s clientele include MT v, E S PN, B B C , Dis covery Channel, J etix, HS N, Disney,

F ord, Nike, HP , V is a , R eebok, T oyota , G eico, T ime W arner, C omcas t, and S ky. E nsequence, Inc. was founded in 2000 and is

headquartered in P ortland, O regon with additional offices in New Y ork, C alifornia , and the United K ingdom.

FourSquare United S ta tes www. foursquare.com Foursquare S olutions Inc. des igns and develops software for iphones . F oursquare S olutions Inc. is based in New Y ork , New Y ork.

Fwix United S ta tes www. fwix. com Fwix, Inc. owns and opera tes as an online porta l which collects articles from different s ources and provides current information about a local

a rea , including photos , videos , events , articles , reviews , and mus ic. T he company was founded in 2008 and is based in Menlo P ark,

C alifornia .Greys tripe United S ta tes www.greys tripe.com G reys tripe, Inc. operates an ad-supported mobile games and applications dis tribution platform. T he company provides online gaming and in-

game advertis ing solutions through publis her s ites . Its AdWR AP product s uite enables brand advertis ers to communica te their brand

mes s ages to mobile audience; publis hers to s erve ads through their games ; and cons umers to download games , as well as delivers images ,

videos , and s crolling banners to mobile games and applications . T he company’s s olutions a ls o include AdWR AP Campaign Manager, an

advertis ing W eb interface that a llows advertis ing agencies and ad res ellers to crea te and monitor mobile in-game ad campaigns ; AdWR AP

C atalog P rogram, which enables partners to dis tribute a mobile game ca ta log; and AdWR AP for P ublis hers platform that provides mobile

game publis hers an automated proces s , which ad-enables mobile games and applications . It s erves developers , carriers and dis tributors ,

game players , and consumer W eb s ites . T he company is based in S an F rancis co, C alifornia .

HiveL ive United S ta tes www.hivelive.com HiveL ive Inc. provides enterpris e socia l s oftware platforms . The company’s on-demand software enables companies to deploy cus tom-fit

enterpris e communities built around people, rela tionships , and sha red knowledge. It offers L iveConnect, provides a building-block approach

for creating cus tom-fit online cus tomer communities ; and Hives , which are W eb 2.0 building blocks tha t combine people, information, and

permis s ions to create information resources . HiveL ive Inc. was founded in 2006 and is based in B oulder, Colorado.

InXpo United S ta tes www. inxpo.com InXpo is the leading provider of priva tely-branded virtual events , including V irtua l T rade S hows , V irtual C areer F a irs and V irtua l Corporate

E vents , as well a s Audio and V ideo W ebcas ts . T hese virtual s olutions dramatically reduce travel time and related cos ts , in addition to

making the world a greener place to live. InXpo’s V irtual E vents provide P ublis hers with new online revenue opportunities and Corporations

with the ability to generate leads , communicate, educate and network by connecting more effectively with their communities .

J obvite United S ta tes www. jobvite. com J obvite, Inc. offers recruitment application that a llows to collaborate on making hires . It s erves HR and s ta ffing executives , recruiters , hiring

managers , executives , employees , and jobseekers . T he company was founded in 2003 as F orumJ obs and changed its name to J obvite, Inc.

in 2006. J obvite, Inc. is based in S an F rancis co, C alifornia .

MashLogic United S ta tes www.mashlogic. com MashLogic Inc. offers mashes to persona lize the applications for the users and bloggers . It adds relevant links to Webs ites , pers onalizes

W eb pages , increases vis ibility and reach of content and brand, and enriches W eb with links to sources . T he company was founded in 2007

and is bas ed in Menlo P ark, C a lifornia .

Mint.com United S ta tes www.mint. com Mint S oftware, Inc. provides a W eb-based solution for online financia l management. It offers money management, debt management,

expense tracking, inves tment management, budget management, mutual fund, IR A management, and financia l planning s ervices . T he

company a ls o provides sugges tions based on user’s s pending patterns and automatic categorization of purchases . Mint S oftware, Inc. was

founded in 2006 and is based in Mountain V iew, Ca lifornia .

Mocapay United S ta tes www.mocapay.com Mocapay, Inc. provides a mobile commerce pla tform tha t s upports integrated mobile payments , marketing, and dis tribution at point-of-s a le. It

offers a marketing engine, which enables mes s aging consumers before, during, and after a reta il s tore trans action. T he company was

formerly known as F E E D and changed its name to Mocapay, Inc. in 2007. Mocapay, Inc. was founded in 2006 and is based in B oulder,

C olorado.NextB io United S ta tes www.nextbio.com NextB io, Inc. provides software a s a s ervice based s earch solutions to life s cience res earchers . It offers NextB io B as ic, a W eb application

tha t provides acces s to a databas e of public data ; NextB io P rofes s ional that a llows the individual res earcher or groups of res earchers to

exploit publicly available and internally generated experimental data to enable and accelerate new s cientific dis coveries ; and NextB io

E nterpris e that provides collaboration acros s therapeutic groups and geographic boundaries for pharmaceutica l and biotechnology

companies , commercia l and non-profit res ea rch and development organizations , and academic ins titutions . T he company a ls o provides

NextB io P latform that provides ontology-based s emantic framework that connects heterogeneous data and textual information, as well a s

data analys is and curation, tra ining, and support s ervices . NextB io, Inc. was founded in 2004 and is based in C upertino, C alifornia . It has

s a les offices in New J ers ey; B os ton, Mas s achusetts ; and S an F rancis co, C alifornia .

NowPublic Canada www.nowpublic. com NowP ublic Technologies , Inc. , a participatory news network, owns and operates NowPublic. com platform for citizen journalism. T he

company provides politics , culture, enterta inment, and life photos and video headlines . It s erves Internet users , bloggers , and photography

enthus ias ts . T he company was founded in 2005 and is bas ed in V ancouver, C anada. As of S eptember 2, 2009, NowP ublic Technologies ,

Inc. operates as a s ubs idiary of T he W ashington E xaminer.

R iot Games United S ta tes www. riotgames .com R iot G ames , Inc. develops and publis hes online video games . It offers online titles for consoles and the P C s . T he company was founded in

2006 and is based in Los Angeles , C alifornia .

S kype Luxembourg www.s kype.com S kype T echnologies S .A . provides S kype, a s oftware that enables individua ls and bus ines ses to make free video and voice calls , s end

ins tant mes s ages , and sha re files with other S kype users . It a ls o enables to make calls to landlines and mobiles internationa lly. T he

company a ls o provides headsets , W ebcams , and phones through its online shop. It s erves users in Argentina , B raz il, C hile, C olombia ,

Mexico, P eru, and V enezuela . T he company was founded in 2003 and is based in Luxembourg. As of October 14, 2005, S kype T echnologies

S .A . is a s ubs idiary of eB ay Inc.

Tiny P ictures United S ta tes www. tinypictures .us T iny P ictures , Inc. provides a s ervice for s haring of camera phone pictures and videos between friends . It offers R adar, a s ervice that

enables users to share camera phone pictures and videos with friends . The company was founded in 2005 and is bas ed in S an F rancis co,

C alifornia . As of S eptember 10, 2009, T iny P ictures , Inc. operates as a s ubs idia ry of S hutterfly, Inc.

YuMe United S ta tes www.yumenetworks . com Y uMe, Inc. operates a s a video advertis ing network on W eb. It offers ad management s ys tem tha t enables advertis ers and publis hers to

identify, clas s ify, and track content through digita l media platforms , s uch as W eb, downloads , mobile , and IP T V . T he company a ls o enables

publis hers to organize video on their s ite into content channels , s uch as automotive, financia l s ervices , lifes tyle, news , mus ic, s ports ,

enterta inment, and family friendly. In addition, it offers real-time targeting, measurement, and optimization; content dis tribution and vira l

advertis ing opportunities ; a s uite of interactive ad placements ; and video monetization s ervices . F urther, the company provides a behaviora l

targeting s ys tem that enables advertis ers to target their mes s ages to viewers on a nationa l s cale based on video viewing interes ts and

purchase intent. Y uMe, Inc. was founded in 2004 and is headquartered in R edwood C ity, C alifornia .

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

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09 09 22 Web 2.0 Weekly

Technology

Transcript of 09 09 22 Web 2.0 Weekly