09 10 27 Web 2.0 Weekly

SOFTWARE & SERVICES 27 OCTOBER 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

EARNINGS ROUND-UP: WEB 2.0 EARNINGS SEASON BEGINS

GAMING COMPANIES KICK OFF EARNINGS SEASON IN THE WEB 2 .0 UNIVERSE… Changyou.com is a China-based developer and operator of online games – including its 2-D martial arts saga, Tian Long Ba Bu. The company reported revenue growth of 26% Y/Y in the third quarter, with revenue coming in at $68.7 mil lion. Key operating metrics, which provide read-across colour on the state of broader gaming economics, include: registered accounts, up 46% Y/Y to 75.1 mil lion; active paying accounts, up 20% Y/Y to 2.4 mil lion; and average revenue per paying account, up 7% Y/Y to RMB190 (approximately US$28). Management guidance for $69-$71 mil lion in revenue in Q4 is inl ine with analyst estimates.

Sohu, another Chinese-based company that provides online portals in the People’s Republic of China, which include news, entertainment, and online gaming (through the recently spun-out Changyou.com which was previously its online gaming division), reported revenue growth of 13% Y/Y to $136.6 mill ion. Gaming revenue grew 26% Y/Y, while advertising revenue declined 2% Y/Y (as a result of challenging comparisons against the third quarter last year in which advertising spending boomed ahead of the Beij ing Olympics). Guidance for Q4 revenue of $134.5-$138.5 mil lion is sl ightly below analyst consensus of $141.7 mill ion, implying between 11% and 14% Y/Y growth for the quarter.

… AND SMALLER SOCIAL GAMING DEVELOPERS GET IN ON THE ACTION Watercooler, maker of online fan communities and sports-related social games, which boasts 26 mill ion users primari ly on Facebook and six other social networks, raised $5.5 mil lion. Adding intrigue to the deal is the fact that Betfair, the legal online gambling site for horse racing, led the transaction. We view the participation of Betfair as indicative of the attractiveness of online social gaming – indeed, with Betfair unable to operate its core business in the U.S. due to legal restrictions, an investment in Watercooler may represent a strategy that (1) brings the company closer to the lucrative U.S. market, and (2) brings social network-based gaming expertise into the company fold.

FINALLY – HALLOWEEN SEEMS TO HAVE SCARED OFF INVESTORS Deal flow slowed down to four transactions in the week – a week which saw 31 of 56 companies in our Web 2.0 public comparables l ist (trading above $1 minimum) experience price declines in the market. Average deal size in the quarter dropped from $7.8 mill ion last week to $7.6 mil lion currently.

Financing Activity Last Twelve Months

9.7

7.0

6.5

7.1

6.66.2

14.6

4.9

5.5

7.6

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7.6

7.0

0.0

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Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09

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0.0

2.0

4.0

6.0

8.0

10.0

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Total Average*May-09 includes $200m FB investment

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

Eighty-nine public Web 2.0 companies: Our Web 2.0 universe contains 89 companies, with a combined market cap of approximately $72 bil lion (Figure 1). The median market cap for the group is $44.5 mil lion, with average trail ing revenue of $161 mill ion (median $57 mill ion). The companies are also generally profitable with a median EBITDA margin of 12.5%. On a valuation basis, the overall average is 6.0x trai ling revenue (median 1.9x) and 11.4x trail ing EBITDA (median 9.8x). 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

Rev ($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 ta tes 0.55 15.4 4.4 (3.7) -83.3% 4.6x - 11

Actoz S oft C o. , Ltd. 6/30/2009 A052790 K OS E KR W S outh K orea 16,300 118.3 108.7 25.9 23.8% 0.8x 3.3x NA

AQ Interactive, Inc. 6/30/2009 3838 T S E J P Y J apan 48,400 29.4 66.1 (2.0) -2.9% 0.1x - NA

Associated Media Holdings Inc. 6/30/2007 AS MH OTCP K US D United S ta tes 0.01 0.4 0.1 (2.3) NM 12.6x - 3

B igs tring C orp. 6/30/2009 B S GC OTCB B US D United S ta tes 0.03 2.0 0.1 (1.5) NM 49.2x - 4

B etawave C orporation 6/30/2009 BW AV OTCB B US D United S ta tes 0.04 1.2 9.4 (12.6) NM - - 51

B eyond C ommerce, Inc. 6/30/2009 B YOC OTCB B US D United S ta tes 0.10 5.1 11.7 (12.8) NM 0.9x - 101

B right Things plc 3/31/2009 AIM:B G T AIM GB P United K ingdom 0.01 5.4 0.0 (2.7) NM - - NA

B roadWebAs ia Inc. 9/30/2008 BW BA OTCP K US D United S ta tes 0.03 2.5 0.0 (4.6) NM - - 46

CDC C orp. 6/30/2009 CHIN.A NasdaqGS US D Hong K ong 2.48 262.8 361.6 25.1 6.9% 0.7x 10.3x 2,227

C hangyou.com L imited 6/30/2009 C YOU NasdaqGS US D China 31.30 1,721.5 241.2 147.2 61.0% 6.0x 9.8x 628

C hina Ga teway C orporation 9/30/2008 CGW Y OTCP K US D United S ta tes 0.00 0.0 6.7 (6.6) -98.9% 0.0x - 37

C hinese G amer Interna tiona l 6/30/2009 G T S M:3083 G T S M TWD T aiwan 428 1,110.0 61.6 34.7 56.3% 16.8x 29.9x NA

C LIC K E R Inc. 5/31/2009 C LK Z OTCB B US D United S ta tes 0.01 0.9 2.5 (1.2) -45.8% 0.4x - 22

C ornerWorld C orpora tion 7/31/2009 CW R L OTCB B US D United S ta tes 0.06 5.7 6.8 NM NM 2.4x - 16

C yberplex Inc. 6/30/2009 T S X:C X T S X CAD Canada 1 77.9 89.8 9.7 10.8% 0.6x 6.0x NA

DADA S pA 6/30/2009 CM:DA CM E UR Italy 7.47 177.4 241.9 31.8 13.1% 0.9x 7.1x NA

DXN Holdings B hd 5/31/2009 DXN K LS E MYR Ma lays ia 0.63 40.9 77.1 11.1 14.4% 0.7x 5.0x NA

Dibz International, Inc. NA DIB Z OTCP K US D United S ta tes 0.00 0.0 NA NM NM - - NA

Digita lP os t Interactive, Inc. 6/30/2009 DGLP OTCB B US D United S ta tes 0.06 4.6 1.0 (1.4) NM 6.7x - 7

Digita lT own, Inc. 8/31/2009 DGTW OTCB B US D United S ta tes 2.00 54.7 0.0 (1.8) NM - - 3

Dolphin Digita l Media , Inc. 6/30/2009 DPDM OTCB B US D United S ta tes 0.49 26.3 0.6 (3.4) NM 46.9x - NA

E olith Co. Ltd. 12/31/2008 A041060 K OS E KR W S outh K orea 575 34.9 15.4 (3.6) -23.6% 2.4x - NA

E xtens ions , Inc. 6/30/2009 E XT I OTC P K US D United S ta tes 0.25 11.1 NM NM NM - - 2

F luid Mus ic Canada , Inc. 6/30/2009 T S X:FMN T S X CAD United S ta tes 1.90 91.7 5.3 (5.1) -95.2% 16.4x - NA

F rogs ter Interactive P ictures AG 6/30/2009 F R G XT R A E UR Germany 19.90 74.7 9.6 (4.5) -47.0% 7.6x - NA

G amania Digita l E ntertainment C o. , Ltd. 6/30/2009 6180 G T S M TWD T aiwan 48.85 228.8 140.6 25.1 17.9% 1.5x 8.2x NA

G ameOn C o Ltd. 6/30/2009 3812 T S E J P Y J apan 88,400 95.6 81.9 20.1 24.5% 0.3x 1.0x NA

G eoS entric Oyj 6/30/2009 G E O1V HLS E E UR F inland 0.05 65.8 5.4 (17.4) NM 12.1x - 115

G iant Interactive G roup, Inc. 6/30/2009 GA NY S E US D China 8 1,730.0 198.5 124.1 62.5% - - 1,570

G igaMedia Ltd. 3/31/2009 G IGM NasdaqGS US D T aiwan 4.54 247.5 183.6 NM NM 0.9x - 751

G ravity Co. , Ltd 6/30/2009 GR V Y NasdaqGM US D S outh K orea 1.60 44.5 49.1 16.6 33.9% - - 469

G ree, Inc. 6/30/2009 T S E :3632 T S E J P Y J apan 5 ,040 2,523.3 156.0 93.7 60.1% 15.4x 25.7x NA

GungHo Online E ntertainment, Inc. 6/30/2009 3765 OS E J P Y J apan 221,000 283.1 119.5 26.6 22.2% 2.1x 9.4x NA

HanbitS oft, Inc. 6/30/2009 A047080 K OS E KR W S outh K orea 3 ,560 65.3 60.7 1.4 2.3% 0.9x 36.6x NA

IAC /InterActiveC orp. 6/30/2009 IAC I NasdaqGS US D United S ta tes 19.07 2,524.9 1,392.3 52.7 3.8% 0.6x 14.9x 3,200

IAS E nergy, Inc. 4/30/2009 IAS A.E OTCB B US D C anada 0.11 7.4 0.0 (0.6) NM - - NA

is eemedia Inc. 3/31/2009 IE E T S XV CAD Canada 0.14 6.6 1.6 (5.0) NM 3.6x - NA

J umbuck E nterta inment L imited 6/30/2009 AS X:J MB AS X AUD Aus tralia 0.34 14.5 16.7 7.2 42.8% 0.5x 1.1x 79

K AB Dis tribution Inc. 6/30/2009 T S X:K AB T S X CAD Canada 0 0.6 67.9 4.0 5.8% - - NA

K ingsoft C o. Ltd. 6/30/2009 3888 S E HK HKD China 8 1,058.1 139.1 61.4 44.2% 7.6x 17.2x 2,463

L ingo Media C orporation 6/30/2009 T S XV :LM T S XV CAD Canada 1.00 11.4 1.2 (1.9) NM 8.8x - NA

L iveW orld Inc. 6/30/2009 LVWD OTCP K US D United S ta tes 0.04 1.3 10.6 (0.1) -1.2% 0.0x - NA

LookS mart, Ltd. 6/30/2009 LOOK NasdaqGM US D United S ta tes 1.32 22.6 56.8 (4.4) -7.8% - - 90

Magnitude Information S ys tems Inc. 6/30/2009 MAGY OTCB B US D United S ta tes 0.01 4.1 0.1 (2.5) NM - - 14

Mixi, Inc. 6/30/2009 2121 T S E J P Y J apan 737000.00 1,270.0 136.8 46.2 33.8% 8.4x 24.9x NA

Modern T imes G roup Mtg AB 6/30/2009 MTG B OM S E K S weden 325.70 3,082.3 1,971.4 302.9 15.4% 1.9x 12.1x 2,969

MOKO.mobi L imited 6/30/2009 MK B AS X AUD Aus tralia 0.08 7.3 0.7 (2.4) NM 9.1x - NA

Myriad G roup AG 6/30/2009 MY R N S W X CHF S witzerland 4.49 192.5 63.0 3.4 5.4% 3.0x - 405

NE OW IZ G ames Corpora tion 12/31/2008 A095660 K OS E KR W S outh K orea 40500.00 715.5 207.3 55.7 26.8% 3.4x 12.7x NA

NetDragon W ebS oft, Inc. 6/30/2009 777 S E HK HKD China 5 349.9 89.3 25.7 28.7% 2.3x 8.0x 3,109

Netease.com Inc. 6/30/2009 NT E S NasdaqGS US D China 37.70 4,879.4 472.4 297.4 63.0% - - 3,109

NeuLion Incorporated 6/30/2009 T S X:NLN T S X CAD Canada 0.76 77.2 21.5 (13.0) -60.3% 3.1x - 237

NeXplore C orporation 6/30/2009 NXP C OTCP K US D United S ta tes 1 44.1 1.7 (13.3) NM 28.3x - NA

Ngi G roup Inc. 6/30/2009 2497 T S E J P Y J apan 30300.00 42.0 93.0 6.9 7.4% - - NA

Northgate T echnologies L imited 6/30/2009 590057 B S E INR India 35.55 25.8 82.9 (41.5) -50.0% 0.3x - NA

Open T ext C orp. 6/30/2009 OT E X NasdaqGS US D C anada 39.53 2,219.6 785.7 205.1 26.1% 2.9x 11.0x 3,411

Openwave S ys tems Inc. 6/30/2009 OPW V NasdaqGS US D United S ta tes 2.75 229.7 191.7 4.9 2.6% 0.6x 24.6x 590

P erfect W orld C o. , Ltd. 6/30/2009 PW R D NasdaqGS US D China 45.11 2,218.6 255.6 142.2 55.6% 0.7x 1.3x 2,096

P NI Digita l Media Inc. 6/30/2009 T S XV :P N T S XV CAD Canada 1.70 53.5 21.0 2.3 11.0% 2.5x 22.3x NA

Quepasa C orp. 6/30/2009 QP S A OTCB B US D United S ta tes 1 17.2 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 us s ia 1.60 222.0 157.4 20.6 13.1% 0.0x 0.4x NA

S handa Interactive E nterta inment Ltd. 6/30/2009 S NDA NasdaqGS US D China 46.03 3,095.8 629.0 296.7 47.2% - - 3,124

S hutterfly, Inc. 6/30/2009 S FLY NasdaqGS US D United S ta tes 14.51 369.4 218.6 27.3 12.5% 1.4x 11.2x 514

S K C ommunications C o. , Ltd. 12/31/2008 A066270 K OS E KR W S outh K orea 7800.00 273.7 192.7 12.5 6.5% 1.4x 21.8x NA

S NAP Interactive, Inc. 6/30/2009 S T V I OTC B B US D United S ta tes 0 3.8 3.5 0 .9 27.0% 0.6x 2.3x 11

S NM G loba l Holdings 9/30/2008 S NMN OTCP K US D United S ta tes 0.00 0.0 2.0 (0.7) -34.8% 1.1x - 33

S ocial Media V entures Inc. 12/31/2008 S MV I OTC P K US D United S ta tes 0 0.0 0.1 (0.1) -60.6% 4.5x - NA

S ocialwis e, Inc. 6/30/2009 S C LW OTCB B US D United S ta tes 0.58 25.7 0.0 (5.6) NM - - NA

S ohu.com Inc. 6/30/2009 S OHU NasdaqGS US D China 60.85 2,332.6 485.1 209.6 43.2% 3.8x 8.7x 3,197

S park Networks , Inc. 6/30/2009 LOV AME X US D United S ta tes 3 52.7 50.5 10.8 21.3% 1.0x 4.7x 183

S pectrumDNA, Inc. 6/30/2009 S P XA OTCB B US D United S ta tes 0 4.9 0.1 (2.5) NM 39.9x - 7

T encent Holdings Ltd. 6/30/2009 700 S E HK HKD China 149 34,855.4 1,391.6 680.3 48.9% 27.6x - 6,421

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

T he9 L imited 12/31/2008 NC T Y NasdaqGS US D China 8.03 201.5 250.6 85.5 34.1% - - 1,626

T heS treet. com, Inc. 3/31/2009 T S CM NasdaqGM US D United S ta tes 2.86 87.5 67.0 1.9 2.9% 0.3x 11.8x 310

T ree.C om, Inc. 6/30/2009 T R E E NasdaqGM US D United S ta tes 7.83 84.6 216.6 (0.7) -0.3% 0.4x - 700

Unis erve C ommunica tions C orp. 5/31/2009 T S XV :US S T S XV CAD Canada 0.05 1.1 17.1 (0.2) -1.0% 0.2x - NA

United Online Inc. 6/30/2009 UNTD NasdaqGS US D United S ta tes 8.68 727.7 949.8 203.2 21.4% 1.0x 4.9x 1,469

UOMO Media , Inc 7/31/2009 UOMO OTCB B US D C anada 0 8.6 0.8 (0.4) -54.2% 11.5x - NA

V alueC lick Inc. 6/30/2009 V C LK NasdaqGS US D United S ta tes 13 1,112.9 563.6 99.0 17.6% 1.7x 9.9x 1,189

V OIS , Inc. 6/30/2009 VOIS OTCB B US D United S ta tes 0 4.1 0.0 (1.0) NM - - 4

W ebzen Inc. 6/30/2009 W ZE N NasdaqGM US D S outh K orea 2.90 34.4 23.2 2.3 9.9% - - 328

W izzard S oftware C orporation 6/30/2009 W ZE AME X US D United S ta tes 0.42 21.2 5.3 (4.5) -84.9% 4.2x - 110

Worlds . com Inc. 6/30/2009 WDDD OTCB B US D United S ta tes 0.10 5.2 0.1 (0.7) NM - - 1

W ynds torm Corpora tion NA W YND OTCP K US D United S ta tes 0.10 1.8 NA NM NM - - NA

XING AG 6/30/2009 O1B C XT R A E UR Germany 36.41 281.1 58.9 17.0 28.8% 3.9x 13.5x 246

YD Online C orp. 12/31/2007 A052770 K OS E KR W S outh K orea 7750.00 97.4 57.4 12.4 21.6% 1.9x 8.6x NA

Ynk K orea Inc. 12/31/2008 A023770 K OS E KR W S outh K orea 4300.00 19.2 11.9 1.3 10.5% - - NA

High 34,855.4 1,971.4 680.3 63.0% 49.2x 36.6x 6,421

Low 0.0 0.0 -41.5 -98.9% - - 1

Average 810.8 161.2 39.0 6.1% 6.0x 11.4x 936Median 44.5 57.1 1.7 12.5% 1.9x 9.8x 246

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 )

Pace of deal signings slows: Total transaction value in the Web 2.0 universe for October is $151.2 (vs. $125.2 mil lion at t ime of last publication). The week ending October 26 has brought four financings to the sector, bringing the total for October to 20 transactions averaging $7.6 mil lion each (vs. an average of $7.8 mill ion last week). In comparison, total capital raised in September was $232.8 mill ion, averaging $9.0 mill ion (26 deals); August was $232.8 mill ion, averaging $7.6 mil lion (29 deals); and July (35 deals) $191.4 mil lion, averaging $5.5 mil lion.

Financing Activity Last Twelve Months

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

Deal round-up for October (to date): The large deal highlights for the month include:

• DailyMotion – a French online video content provider – raised $25.3 mil lion through a Series C financing.

• Yext – an online directory provider – raised $25 million.

• PopCap Games – a developer of casual games played on multiple types of devices – raised $22.5 mil lion in its f irst round of funding.

• Engine Yard – provider of managed hosting and deployment solutions for Ruby and Rails applications – raised $19 mil lion in a Series C financing.

• Ecast Network – operator of a broadband touch screen network in the U.S. – raised $17 mil lion in a follow-on unattributed financing.

• HubSpot – provider of online enterprise marketing application – received $16 mil lion in Series C financing.

• Jive Software – maker of enterprise collaboration and social community software – raised $12 mill ion in a Series B financing by returning VC fund, Sequoia.

All other deals in the month were in the amount of $10 mill ion or less. 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

Social Networks the most active sector: Social Networks experienced the most f inancing activity among our Web 2.0 sector categories in the past three months by number of transactions (11). Advertising continues to be among the highest activity sectors with 10 deals in the past quarter. Gaming follows with nine transactions followed by Video (6) (Figure 4). The $2.0 bil lion acquisit ion of Skype skews the dollars transacted to the SMS/Voice segment, while the $170 mill ion acquisition of Mint brings the Vertical Communities segment to the second highest total.

Capital Market Activity by Sector - Last Three Months

2,025.0 192.3 122.0 100.0 96.4 70.3 61.8 46.0 37.9 35.5 34.0 29.1 26.1 17.1 15.8 14.0 13.2 13.0 11.5 3.9 2.8 2.0 1.3 0.40.0

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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 Q1/09. Since then, the index has diverged in a much stronger recovery relative to the NASDAQ index (Figure 5).

Web 2.0 Index Price Performance

0

50

100

150

200

250

300

10/2

7/2

008

11/1

0/2

008

11/2

4/2

008

12/8

/2008

12/2

2/2

008

1/5

/2009

1/1

9/2

009

2/2

/2009

2/1

6/2

009

3/2

/2009

3/1

6/2

009

3/3

0/2

009

4/1

3/2

009

4/2

7/2

009

5/1

1/2

009

5/2

5/2

009

6/8

/2009

6/2

2/2

009

7/6

/2009

7/2

0/2

009

8/3

/2009

8/1

7/2

009

8/3

1/2

009

9/1

4/2

009

9/2

8/2

009

10/1

2/2

009

10/2

6/2

009

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

Figure 5. Web 2.0 Price Performance Source. Capital IQ

Broad-based price improvement: Fourteen companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), while 31 companies showed negative 1-week returns.

1 Week Price Performance

-13.1%-12.9%

-9.9%-9.7%-8.9%

-7.1%-6.8%-5.6%-5.0%-5.0%-4.7%-4.2%-4.2%-3.9%-3.6%-3.4%-2.9%-2.9%-2.9%-2.4%-2.3%-2.1%-2.0%-1.9%-1.9%-1.3%-1.2%-1.0%-0.9%-0.6%-0.2%

0.3%0.7%1.6%

4.1%4.5%

6.6%6.7%7.4%8.7%9.3%9.5%10.2%

15.2%37.7%

-0.2 -0.1 0 0.1 0.2 0.3 0.4 0.5

S ohu.com Inc .HanbitS oft, Inc .

Chines e Gamer InternationalThe9 L imited

S hutterf ly , Inc .V alueClick Inc .

S handa Interactive Entertainment Ltd.G igaMedia Ltd.

S K Communications Co. , Ltd.Eolith Co. Ltd.

TheS treet.com, Inc .Neteas e.com Inc .Y D Online Corp.United Online Inc .Quepas a Corp.Open Tex t Corp.

Frogs ter Interactive Pictures AGDADA S pA

PNI Digita l Media Inc .Gravity Co. , Ltd

Gamania Digita l Entertainment Co. , Ltd.Northgate Technologies L imited

CDC Corp.GameOn Co Ltd.

X ING AGChangyou.com Limited

AQ Interactive, Inc .Modern Times Group Mtg A B

Tree.Com, Inc .IAC/InterActiveCorp.Myriad Group AG

Perfect World Co. , Ltd.G iant Interactive Group, Inc .

Cyberplex Inc .Gree, Inc .

Actoz S oft Co. , Ltd.Y nk K orea Inc .

OAO RBC Information S ys temsNgi Group Inc .

Openw ave S ys tems Inc .NEOWIZ Games Corporation

Webzen Inc .LookSmart, Ltd.

Mix i, Inc .F luid Mus ic Canada, 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

Open Text Corp. (NasdaqGS :OTEX) B ehr P roces s C orporation Launches Newly E nhanced

B E HR .com S upported by V ignette Content Management

from Open T ext

Open T ext announced that B ehr P roces s C orporation has launched its newly enhanced B E HR .com supported by

V ignette Content Management from Open T ext C orp. V ignette W eb Content Management S olutions from Open T ext

provide advanced rich media management capabilities and a high-performance foundation for B E HR .com, enabling

deep interactivity and an eas ier, immers ive W eb s ite experience. Development utiliz ing Adobe F lex and F las h a llows

B E HR .com to project la rge magazine-s tyle images and cinematic trans itions from page to page. B E HR .com also

leverages the company's dynamic caching technology to pres ent a high volume of content while improving

performance that res ults in a great end-us er experience.

Shutterfly, Inc . (NasdaqGS :S FLY) S hutterfly's P ro G allery S ervice Introduces Digita l

Download

S hutterfly Inc. announced the addition of Digita l Download to its P ro G allery service, a s tore front for profes s ional

photographers to s ell their photos . W ith the new Digita l Download feature, profes s ional photographers can now sell

high resolution copies of their images to cus tomers directly from their P ro G allery account. The company's P ro G allery

s ervice offers profes s ionals premium s ervice with web pres ence, top-quality profes s ional photo printing services , full-

s ervice order proces s ing and fulfillment and world clas s cus tomer s ervice. P ro G allery photographers a ls o receive

online sa les reports , photo s torage, and image rights protection.

S itesearch Corporation S itesearch Corporation Announces R es ignation of J ames

S . Dixon from the B oard

S itesearch Corporation announced that on October 19, 2009, Mr. J ames S . Dixon res igned as a member of the board

of directors of the company.

The9 L imited (NasdaqGS :NCTY) The9 L imited, Annual G enera l Meeting, Oct 20, 2009 The9 L imited, Annual G enera l Meeting, Oct 20, 2009 Agenda: T o re-elect and appoint Davin Alexander Mackenzie, K a

K eung Y eung and Chao Y ong W ang an independent director (C las s I I ) of the Company, effective from the clos ing of

the Annual G enera l Meeting held on October 20, 2009, to s erve for 3 year term ending at the 2012 Annual G enera l

Meeting or until his succes sor is duly elected and qualified.

Alpha Capital AG; B igs tring Corp.

(OTCBB :BSGC); Ches tnut R idge

Partners , L .P .; E xcalibur Capital

Management Inc .; Iroquois Capital, LP ;

Penn Footwear Co.; Tudor Inves tment

Corporation; VIP Connectz USA, Inc .;

Whalehaven Capital Fund L imited

V IP Connectz US A, Inc. cancelled the acquis ition of

B igs tring Corp. (OTCB B : B S GC ) in a revers e merger

trans action.

V IP Connectz US A, Inc. s igned a non-binding letter of intent to acquire B igs tring Corp. (OTCB B : B S GC ) in a revers e

merger trans action on October 20, 2008. Under the terms of the letter of intent, B igS tring will is s ue unregis tered s hares

of common s tock equal to 50% of the sum of the tota l number of shares of B igS tring common s tock is s ued and

outs tanding plus the number of s hares of B igS tring common s tock ava ilable for is s uance upon the convers ion of

B igS tring’s outs tanding convertible notes and S eries A P referred S tock, in exchange for a ll of V IP Connectz ’s capita l

s tock. After the clos ing of the trans action E dward J . W eaver, P res ident and Chief E xecutive Officer of V IP Connectz ,

will s erve as P res ident and Chief E xecutive Officer of B igS tring. Darin Myman, P res ident and Chief E xecutive Officer of

B igS tring, will become V ice P res ident of S trategic Development of B igS tring. T he transaction is s ubject to s evera l

conditions , including execution of definitive agreement.

Modern Times Group Mtg AB (OM:MTG

B )

Modern T imes G roup Mtg AB R eports E arnings R esults

for the T hird Quarter and F irs t Nine Months of 2009

Modern T imes G roup Mtg AB reported earnings res ults for the third quarter and firs t nine months of 2009. F or the

quarter, net profit was S E K 254 million, compared with S E K 405 million a year earlier. P retax profit came in at S E K 336

million agains t S E K 595 million. Operating income decreased to S E K 377 million from S E K 574 million. Net s a les ros e

7% to S E K 3.177 billion.

F or the firs t nine months of 2009, the company reported a net profit of S E K 836 million agains t S E K 1.225 billion in the

previous year. T he figure excludes S E K 1.173 billion of income from the dis continued DTV G roup in 2008. P retax profit

declined to S E K 1.096 billion from S E K 1.79 billion. Operating income s tood at S E K 1.199 billion agains t S E K 1.753

billion. S a les increas ed 8% to S E K 10.097 billion.

DigitalPos t Interactive, Inc .

(OTCBB :DGLP)

Digita lP os t Interactive S igns Contracts with Two P hoto

Companies

Digita lP os t Interactive Inc. announced the s igning of new contracts with two photo companies .

The9 L imited (NasdaqGS :NCTY) Coughlin S toia G eller R udman & R obbins LLP F iles

C las s Action S uit agains t T he9, L td

Coughlin S toia G eller R udman & R obbins LLP announced that a clas s action has been commenced in the United

S tates Dis trict C ourt for the S outhern Dis trict of New Y ork on behalf of purchasers of American Depos itary S hares of

T he9 L imited between November 15, 2006 and J uly 15, 2009, inclus ive (the 'C las s P eriod'), agains t T he9 and certa in

of the officers and/or directors of T he9 for violations of the S ecurities E xchange Act of 1934 (the 'E xchange Act'). T he

compla int charges T he9 and certa in directors and officers of T he9 with violations of the E xchange Act. T he9 is an

online game operator and developer in China . According to the compla int, during the C las s P eriod, the Company,

directly and through its a ffilia tes and/or s ubs idiaries , operated licens ed mas s ively multiplayer online role-playing games

and advanced casual games in China , including World of W arcraft, S oul of T he Ultimate Nation, G ranado E spada , E A

S P OR T S F IF A Online 2, and Atlantica . It a lso operated other licens ed games in mainland China , including Audition 2

and F ield of Honor. P la intiff seeks to recover damages on behalf of a ll purchasers of T he9 ADS s during the C las s P eriod

Figure 7a. Key Developments Source. Capital IQ


OAO RBC Information S ys tems

(R TS :RBC I)

OAO R BC Information S ys tems P rovides R evenues

Outlook for the F ull Y ear of 2009

OAO R B C Information S ys tems provides revenues outlook for the full year of 2009. R evenue of company is expected

to decreas e 26% on the year to R UB 3.9 billion in 2009.

Uniserve Communications Corp.

(TSXV:USS )

Unis erve Communications Corp. Announces E xecutive

Changes

Unis erve Communications Corp. announced that W illiam S pratt has res igned as the C E O and a Director of the

company. Michael S chmidt who has s erved as the company's P res ident has agreed to join the B oard and take on the

expanded role as C E O.

Netease.com Inc. (NasdaqGS :NTE S ) Neteas e.com Inc. to Launch G ame.163.com Neteas e.com Inc. is to launch online game consulting webs ite game.163.com. V ia the move, NetE as e.com a ims to

enhance its s aying right in the indus try, gues sed indus try watchers , adding that the launch of the s ite will a ls o bring

advertis ing revenues for NetE as e.com. T he new s ite will focus on indus try news and product news and promote online

games like World of W arcraft (W oW ) and J X3 Online at important pos itions . However, the company made no

comment on the is sue.

Wizzard Software Corporation

(AMEX:WZE )

W izzard Media Announces E ight New P odcas t

C ompanion Apps

W izzard Media announced eight new podcas t companion iP hone(TM) Apps approved and ava ilable for s a le in the App

S tore. T he newly approved Apps are iP hone companion Apps for popular podcas ts offering convenient access to the

podcas t, s how extras , bonus content and new socia l communication features . T his brings the tota l number of W izzard

Apps to 58 with 34 awaiting approval and another 20 to be uploaded for anticipated approval in October. T he newly

releas ed Apps include, get R eal is currently the #58 podcas t in the B us ines s s ection of iT unes (R ).

Quepasa Corp. (OTCBB :QPSA) Quepas a Introduces New Dis tributed S ocia l Media

R evenue P latform

Quepas a Corp. announced the introduction of a new ad product revenue platform, Dis tributed S ocia l Media (DS M).

Quepas a 's DS M is a new vira l ad product that a llows Quepas a to leverage not only its s ocia l network, but a ls o a ll other

s ocia l networking s ites . T his new approach will a llow advertisers and brands to target and dis tribute their marketing

mes s age acros s a ll s ocia l media s ites through Quepas a .com. Thes e us er-generated campaigns are extremely vira l

and create great word-of-mouth marketing for the brands by motivating us ers to s hare content with friends and

colleagues acros s a ll of the popular s ocia l media s ites . T he effect for brands is that they are able to have a cons is tent

brand mes s age delivered to a broad user bas e at the lowes t equiva lent cos t per impres s ion compared to mos t any

other forms of advertis ing. At the s ame time, Quepasa 's DS M addres s es the bigges t problem typica lly faced by brands

when trying to launch s ocia l network driven campaigns in terms of achieving meaningful us er engagement while

providing rea l time R OI metrics . As part of this new s trategy, Quepas a intends to expand its s a les efforts for both the Qu

Beyond Commerce, Inc .

(OTCBB :BYOC)

B eyond Commerce, Inc. Accepts R es ignation of W endy

B orow-J ohnson as P res ident

On October 22, 2009, B eyond Commerce, Inc. accepted the res ignation, dated

October 19, 2009, of W endy B orow-J ohnson as P res ident of B rand Management. Ms . J ohnson will continue with the

Company as a S pecia l Advis or and Consultant as it perta ins to the Company's communications and media needs .

S itesearch Corporation S itesearch Corporation announced delayed annual 10-K

filing

On 10/23/2009, S ites earch Corporation announced that they will be unable to file their next 10-K by the deadline

required by the S E C .

Giant Interactive Group, Inc .

(NYSE :GA)

G iant Interactive P artners with As trum Niva l to L icens e

ZT Online in R us s ia

G iant Interactive G roup, Inc. announced that it s igned an agreement with As trum Niva l, LLC to grant a licens e to

As trum Niva l to operate ZT Online, G iant's flagship 2D mas s ively multiplayer online role playing game ('MMOR PG '), in

the R uss ian F ederation and other R us s ian s peaking territories . ZT Online is G iant Interactive's firs t internally-

developed 2D free-to-play MMOR PG . S ince its commercia l launch, ZT Online has reached peak concurrent us er

(P CU) levels over 2.1 million and was voted the mos t popular game in China in 2006 according to International Data

Corporation. As a free-to-play game, revenues are derived from in-game purchas es of virtua l items and s ervices . ZT

Online is currently operated in Mainland China by the Company and in Hong K ong, Macau, T a iwan, Malays ia and

S ingapore via a license to Lager Network. Additionally, G iant has als o granted a licens e to V inaG ame S oftware

S ervice J oint S tock Company, or V inaG ame, to operate ZT Online in V ietnam.

Changyou.com L imited

(NasdaqGS :CYOU)

Changyou.com L imited R eports Unaudited Consolidated

E arnings R esults for the T hird Quarter and Nine Months

E nded S eptember 30, 2009; P rovides E arnings G uidance

for the F ourth Quarter of 2009

Changyou.com L imited reported unaudited consolidated earnings results for the third quarter and nine months ended

S eptember 30, 2009. F or the quarter, the company's tota l revenues were $68,684,000 agains t $54,604,000 a year ago.

T he increas es were mainly due to increas ed popularity of the company's flagship game, T LB B . Operating profit was

$42,288,000 agains t $32,474,000 a year ago. Income before income tax expense was $43,288,000 agains t

$32,791,000 a year ago. Net income was $37,794,000 agains t $32,084,000 a year ago. Diluted net income per ADS

was $0.71 agains t $0.68 a year ago. Non-GAAP operating profit was $45,842,000 agains t $33,725,000 a year ago.

Non-GAAP net income was $41,348,000 agains t $33,335,000 a year ago. Non-GAAP diluted net income per ADS was

$0.77 agains t $0.70 a year ago. Operating cash flow was a net inflow of $46.2 million.

F or the nine months , the company's tota l revenues were $196,887,000 agains t $143,455,000 a year ago. Operating

profit was $119,624,000 agains t $81,537,000 a year ago. Income before income tax expense was $122,170,000

agains t $81,705,000 a year ago. Net income was $105,826,000 agains t $78,914,000 a year ago. Diluted net income per

T he company es timates tota l revenues for the fourth quarter of 2009 to be between $69.0 million and $71.0 million. Non

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

R esults for the T hird Quarter and Nine Months E nded

S eptember 30, 2009; P rovides E arnings G uidance for the

F ourth Quarter of 2009

S ohu.com Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended

S eptember 30, 2009. F or the quarter, the company reported net income attributable to company of $37,354,000 or

$0.88 per s hare on tota l revenue of $136,585,000 agains t net income attributable to company was $40,261,000 or

$1.02 per s hare on tota l revenue of $120,676,000 in the s ame period of las t year. Operating profit was $52,953,000

agains t $43,758,000 in the s ame period of las t year. Income before income tax expense was $54,102,000 agains t

$45,230,000 in the s ame period of las t year. Income from continuing operations was $47,080,000 agains t $40,238,000

in the s ame period of las t year. As per non-GAAP , net income attributable to company was $40,921,000 or $0.96 per

s hare on tota l revenue of $136,585,000 agains t net income attributable to company was $42,822,000 or $1.08 per

s hare on tota l revenue of $120,676,000 in the s ame period of las t year. As per non-GAAP , operating profit was

$57,077,000 agains t $46,319,000 in the s ame period of las t year.

Figure 7b. Key Developments Source. Capital IQ



(R TS :RBC I)






(TSXV:USS )


Changes










(AMEX:WZE )


C ompanion Apps







R evenue P latform












(OTCBB :BYOC)







filing




(NYSE :GA)













(NasdaqGS :CYOU)































Figure 7c. Key Developments Source. Capital IQ

Key Developments - continuedCompany Headline Notes


(R TS :RBC I)






(TSXV:USS )


Changes










(AMEX:WZE )


C ompanion Apps







R evenue P latform












(OTCBB :BYOC)







filing




(NYSE :GA)













(NasdaqGS :CYOU)































Figure 7d. 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 capitalization (Figure 8). Fifty-eight of the 89 companies have market caps under US$100 mil lion, with 35 under US$25 mill ion. Online gaming companies dominate the top of the l ist, led by Tencent Holdings (SEHK:700) with a market cap of approximately US$35 bil lion.

Market Cap (USD m)

0.00.00.00.00.20.40.60.91.11.21.31.82.02.53.84.14.14.64.95.15.25.45.76.67.37.48.611.111.414.515.417.219.221.222.625.725.826.329.434.434.940.942.044.144.552.753.554.765.365.874.777.277.984.687.591.795.697.4118.3177.4192.5201.5222.0228.8229.7247.5262.8273.7281.1283.1349.9369.4715.5727.71058.11110.01112.91270.01721.5

2218.62219.62332.62523.32524.93082.33095.84879.434855.4

1730.0

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

S ocial Media V entures Inc .Dibz International, Inc .S NM Global Holdings

China Gatew ay CorporationThe Parent Company

A s s ociated Media Holdings Inc .KAB Dis tribution Inc .

CLICKER Inc .Unis erve Communications Corp.

B etaw ave CorporationLiveWorld Inc .

Wynds torm CorporationB igs tring Corp.

B roadWebAs ia Inc .S NAP Interactive, Inc .

Magnitude Information S ys tems Inc .V OIS , Inc .

Digita lPos t Interactive, Inc .S pectrumDNA , Inc .

B eyond Commerce, Inc .Worlds .com Inc .B right Things plc

CornerWorld Corporationis eemedia Inc .

MOKO.mobi L imitedIA S Energy , Inc .UOMO Media , IncEx tens ions , Inc .

L ingo Media CorporationJumbuck Enterta inment L imitedAcceleriz e New Media , Inc .

Quepas a Corp.Y nk K orea Inc .

Wiz z ard S of tw are CorporationLookSmart, Ltd.S ocia lw is e, Inc .

Northgate Technologies L imitedDolphin Digita l Media , Inc .

AQ Interactive, Inc .Webzen Inc .Eolith Co. Ltd.

DXN Holdings BhdNgi Group Inc .

NeXplore CorporationGravity Co. , Ltd

S park Netw orks , Inc .PNI Digita l Media Inc .

Digita lTow n, Inc .HanbitS of t, Inc .GeoS entric Oy j

Frogs ter Interactive Pictures AGNeuLion Incorporated

Cyberplex Inc .Tree.Com, Inc .

TheS treet.com, Inc .Fluid Mus ic Canada, Inc .

GameOn Co Ltd.Y D Online Corp.

A ctoz S of t Co. , Ltd.DADA S pA

Myriad Group AGThe9 L imited

OAO RBC Information S ys temsGamania Digita l Enterta inment Co. ,

Openw ave S ys tems Inc .G igaMedia Ltd.

CDC Corp.S K Communications Co. , Ltd.

X ING AGGungHo Online Enterta inment, Inc .

NetDragon WebS oft, Inc .S hutterf ly , Inc .

NEOWIZ Games CorporationUnited Online Inc .K ings oft Co. Ltd.

Chines e Gamer InternationalV alueClick Inc .

Mix i, Inc .Changyou.com Limited

Giant Interactive Group, Inc .Perfect World Co. , Ltd.

Open Tex t Corp.S ohu.com Inc .

Gree, Inc .IAC/InterA ctiveCorp.

Modern Times Group Mtg ABS handa Interactive Enterta inment Ltd.

Neteas e.com Inc .Tencent Holdings Ltd.

Figure 8. Market Cap Ranking Source. Capital IQ

TEV/Revenue (LTM) averages 6.1x: The overall average TEV/Revenue (LTM) multiple for our group is 6.1x (vs. 4.6x last week) (Figure 9). With considerable price appreciation among some of the higher value names in the week, we now see five companies (vs. three last week) trading above 25x revenue – Bigstring Corp. (OTCBB:BSGC) at 49.2x, Dolphin Digital Media, Inc. (OTCBB:DPDM) at 46.9x, SpectrumDNA, Inc. (OTCBB:SPXA) at 39.9x, NexPlore Corporation (OTCPK:NXPC) at 28.3x, and Tencent Holdings Ltd. (SEHK:700) at 27.6x. The median of 1.9x is on par with last week’s multiple. Note that we exclude multiples greater than 50x. Twenty-nine companies have multiples under 1.5x.

TEV/LTM R evenue (x)

0.0 0.0 0.0 0.10.2 0.2 0.3 0.3 0.3 0.4 0.4 0.50.6 0.6 0.6 0.6 0.7 0.7 0.70.8 0.9 0.9 0.9 0.9 1.0 1.0 1.1 1.4 1.4 1.5 1.5 1.7 1.9 1.9 2.12.3 2.4 2.4 2.52.9 3.0 3.13.4 3.6 3.8 3.9 4.2 4.54.66.0 6.7

7.6 7.68.4 8.8 9.1

11.5 12.112.6

15.416.416.8

27.628.3

39.9

46.9

49.2

Average, 6.1

0.0

10.0

20.0

30.0

40.0

50.0

60.0

LiveWorld Inc.

China Gateway Corporation

OAO RBC Information Systems

AQ Interactive, Inc.

The Parent Company


GameOn Co Ltd.

Northgate Technologies Limited

TheStreet.com, Inc.

CLICKER Inc.

Tree.Com, Inc.

Jumbuck Entertainment Limited

IAC/InterActiveCorp.

SNAP Interactive, Inc.

Openwave Systems Inc.

Cyberplex Inc.

Perfect World Co., Ltd.

CDC Corp.

DXN Holdings Bhd

Actoz Soft Co., Ltd.

HanbitSoft, Inc.

Beyond Commerce, Inc.

DADA SpA

GigaMedia Ltd.

Spark Networks, Inc.

United Online Inc.

SNM Global Holdings

Shutterfly, Inc.

SK Communications Co., Ltd.

Gamania Digital Entertainment Co.,

Ynk Korea Inc.

ValueClick Inc.

YD Online Corp.

Modern Times Group Mtg AB

GungHo Online Entertainment, Inc.

NetDragon WebSoft, Inc.

CornerWorld Corporation

Eolith Co. Ltd.

PNI Digital Media Inc.

Open Text Corp.

Myriad Group AG

NeuLion Incorporated

NEOWIZ Games Corporation

iseemedia Inc.

Sohu.com Inc.

XING AG


Social Media Ventures Inc.

Accelerize New Media, Inc.

Changyou.com Limited

DigitalPost Interactive, Inc.

Kingsoft Co. Ltd.

Frogster Interactive Pictures AG

Mixi, Inc.

Lingo Media Corporation

MOKO.mobi Limited

UOMO Media, Inc

GeoSentric Oyj

Associated Media Holdings Inc.

Gree, Inc.

Fluid Music Canada, Inc.

Chinese Gamer International

Tencent Holdings Ltd.

NeXplore Corporation

SpectrumDNA, Inc.

Dolphin Digital Media, Inc.

Bigstring Corp.

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 16.3x (vs. 8.1x last week). On a geographic basis, the United States has the most companies (38), trading at an average of 8.7x revenue (vs. 5.0x last week) (Figure 11). Ten of the companies are Canadian (average 4.1x revenue).

Average TEV/LTM Revenue - By Exchange

0.0 0.00.00.30.4

0.70.91.81.91.92.12.63.03.84.85.76.06.76.7

9.2

12.112.5

16.3

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

OT

CB

B

SE

HK

HLS

E

GT

SM

TS

X

OT

CP

K

TS

E

XT

RA

AS

X

TS

XV

SW

X

AM

EX

OS

E

OM

NasdaqG

S

KO

SE

CM

KLS

E

NasdaqG

M

BS

E

RT

S

AIM

NY

SE

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

(x)

# Companies

Average TEV/LTM Revenue - By Country

0.0 0.0 0.00.7 0.3

0.70.91.81.93.0

4.14.85.35.76.4

8.08.7

12.1

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

Fin

land

Unite

d

Chin

a

Taiw

an

Germ

any

Japan

Austr

alia

Canada

Sw

itzerland

Sw

eden

South

Italy

Mala

ysia

Hong K

ong

India

Russia

Unite

d

Gra

nd T

ota

l

1 38 10 3 2 6 2 10 1 1 8 1 1 1 1 1 1 88

(x)

# Companies

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

TEV/EBITDA (LTM) averages 11.8x: The average multiple for the 35 companies with positive EBITDA (and multiples under 100x) is 11.8x LTM EBITDA (vs. 12.1x last week), led by HanbitSoft, Inc. (KOSE:A047080) 36.6x multiple (Figure 12). Ten companies have EBITDA multiples under 7x. The median multiple is 9.9x (vs. 10.5x last week).

TEV/LTM EB ITDA (x)

0.4 1.0 1.1 1.32.3

3.34.7 4.9 5.0

6.07.1

8.0 8.2 8.6 8.7 9.4 9.8 9.9 10.3 11.0 11.2 11.8 12.1 12.713.5

14.6 14.9

17.2

21.8 22.3

24.6 24.9 25.7

29.9

36.6

A verage, 11.8

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

OAO RBC Information Systems

GameOn Co Ltd.






United Online Inc.

DXN Holdings Bhd

Cyberplex Inc.

DADA SpA


Gamania Digital Entertainment Co., Ltd.

YD Online Corp.

Sohu.com Inc.



ValueClick Inc.

CDC Corp.

Open Text Corp.

Shutterfly, Inc.

TheStreet.com, Inc.



XING AG

Ynk Korea Inc.


Kingsoft Co. Ltd.

SK Communications Co., Ltd.

PNI Digital Media Inc.

Openwave Systems Inc.

Mixi, Inc.

Gree, Inc.


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 2.3x. On a geographic basis, the United States has the most companies (38), trading at an average of 10.5x EBITDA (Figure 14). Ten of the companies are Canadian (average 9.0x EBITDA).

Average TEV/LTM EBITDA - By Exchange

0.41.12.3

4.75.06.07.1

9.410.711.812.112.613.516.6

17.219.1

22.3

0.0

5.0

10.0

15.0

20.0

25.0

TS

XV

GT

SM

TS

E

KO

SE

XT

RA

SE

HK

OM

NasdaqG

M

Nasda

qG

S

OS

E

CM

TS

X

KLS

E

AM

EX

OT

CB

B

AS

X

RT

S

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

(x)

# Companies

Average TEV/LTM EBITDA - By Country

1.1 0.00.4

5.07.1

9.010.310.512.113.113.515.2

16.6

19.1

0.0

5.0

10.0

15.0

20.0

25.0

Taiw

an

South

Kore

a

Japan

Germ

any

Canada

Sw

eden

Unite

d

Sta

tes

Ho

ng K

ong

Chin

a

Italy

Mala

ysia

Austr

alia

Russia

Sw

itzerland

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

(x)

# Companies

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

P/E (LTM) averages 19.0x: The average multiple for the 33 companies with positive earnings (and multiples under 100x) is 19.0x LTM EPS (vs. 18.8x last week), led by Tencent Holdings Ltd. (SEHK:700) with a 71.2x multiple (Figure 15). Thirteen companies have P/E multiples under 10x. The median is 11.9x.

P/E LTM (x)

0.0 0.02.1 2.2 2.3 2.8 3.2 4.1

6.7 6.8 7.09.5 9.8 10.3 11.6 11.8 11.9

13.8 14.3 14.4 14.716.7

19.7 20.0 21.1

28.9

37.0 37.239.4

53.5

61.2 61.7

71.2

A verage, 19.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

Gravity Co., Ltd

Webzen Inc.

Giant Interactive Group, Inc.

Shanda Interactive Entertainment Ltd.

The9 Limited

Netease.com Inc.




DXN Holdings Bhd

Cyberplex Inc.

GameOn Co Ltd.

GigaMedia Ltd.

YD Online Corp.

HanbitSoft, Inc.



Sohu.com Inc.





Gamania Digital Entertainment Co., Ltd.

Worlds.com Inc.

Kingsoft Co. Ltd.

XING AG

Open Text Corp.



Gree, Inc.


Mixi, Inc.

Tencent Holdings Ltd.

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 13.3x. On a geographic basis, the United States has the most companies (38), trading at an average of 13.3x earnings (Figure 17). Ten of the companies are Canadian (average 14.5x EPS).

Average P/E - By Exchange

0.02.1

4.16.87.010.513.314.4

14.719.0

28.929.535.5

41.6

61.2

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

OS

E

TS

E

SE

HK

GT

SM

XT

RA

KO

SE

OM

AM

EX

OT

CB

B

NasdaqG

S

TS

X

KLS

E

AS

X

NY

SE

NasdaqG

M

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

(x)

# Companies

Average P/E - By Country

0.00.0

4.16.8

12.713.314.514.7

22.023.028.9

46.5

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

Canada

Sw

eden

Chin

a

Unite

d

Sta

tes

South

Kore

a

Mala

ysia

Austr

alia

Sw

itzerland

Italy

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

(x)

# Companies

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

UP CO MI NG EVE NTS

E arnings CalendarCompany Date & Time Quarter Conf Call Details

IAC/InterActiveCorp. (NasdaqGS:IACI) Tuesday, October 27, 2009, 11:00 a.m. EDT Q3 2009 www. iac.com/inves tors

ValueClick Inc. (NasdaqGS:VCLK) Tuesday, October 27, 2009, 4:30 p.m. EDT Q3 2009 http: //www.va lueclick . com/

Open Text Corp. (NasdaqGS:OTEX) Tuesday, October 27, 2009, 5:00 p.m. EDT Q1 2010 1-800-814-4861

Shutterfly, Inc. (NasdaqGS:SFLY) Wednesday, October 28, 2009, 5:00 p.m. EDT Q3 2009 719-325-4880

Openwave Systems Inc. (NasdaqGS:OPWV) Thursday, October 29, 2009, 5:00 p.m. EDT Q1 2010 877-941-8416

Tree.Com, Inc. (NasdaqGM:TREE) Friday, October 30, 2009, 11:00 a.m. EDT Q3 2009 1-888-428-9470

LookSmart, Ltd. (NasdaqGM:LOOK) Monday, November 2, 2009, 5:00 p.m. EST Q3 2009 1-877-941-8418

United Online Inc. (NasdaqGS:UNTD) Wednesday, November 4, 2009, 5:30 p.m. EST Q3 2009 877-718-5098

Figure 18. Earnings Calendar Source. Company reports

Comparable Company Analys is > Web 2.0

Price Performance

Company Name Currency Ticker E xchange USD Market C ap ($m) Current P rice 1 Wk 1 Mth 3 Mth 6 Mth 1 Yr 52 Week

Accelerize New Media, Inc. US D ACLZ OTC B B 15.4 0.55 -8.3% -15.4% -3.5% 12.2% 10.0% -20.3%

Actoz S oft C o. , L td. K R W A052790 K OS E 118.3 16,300 4.5% -13.8% -36.2% 18.1% 90.2% -54.7%

AQ Interactive, Inc. J P Y 3838 T S E 29.4 48,400 -1.2% -6.4% -18.0% 4.1% 2.1% -41.7%

Associated Media Holdings Inc. US D AS MH OTC P K 0.4 0.01 -35.7% -35.7% -55.0% 500.0% 12.5% -55.0%

B igs tring Corp. US D B S GC OTC B B 2.0 0.03 -12.8% 70.0% 15.3% 150.0% 70.0% -40.4%

B etawave C orporation US D BWAV OTC B B 1.2 0.04 -21.4% -59.9% -63.5% -63.9% -65.1% -86.2%

B eyond Commerce, Inc. US D B YOC OTC B B 5.1 0.10 -4.8% -37.5% -67.7% -92.6% -94.7% -95.3%

B right T hings plc GB P AIM:BG T AIM 5.4 0.01 -9.1% -9.1% -28.6% -33.3% -13.2% -49.4%

B roadWebAs ia Inc. US D BW BA OTC P K 2.5 0.03 -87.0% -87.0% -87.0% -93.3% -95.0% -99.0%

CDC C orp. US D CHIN.A NasdaqG S 262.8 2.48 -2.0% -4.6% -18.4% 110.2% 103.3% -36.7%

Changyou.com Limited US D CYOU NasdaqG S 1,721.5 31.30 -1.3% -15.9% -19.1% 0.8% NM -35.3%

China Gateway C orporation US D CGWY OTC P K 0.0 0.00 -86.7% -86.7% -86.7% 0.0% -80.0% -93.3%

Chines e Gamer International TWD GTS M:3083 G T S M 1,110.0 428.00 -9.9% -7.8% -8.2% 103.8% 433.7% -17.5%

C LICK E R Inc. US D CLK Z OTC B B 0.9 0.01 22.2% 18.3% 57.1% 134.0% -96.9% -97.3%

CornerW orld Corporation US D CW R L OTC B B 5.7 0.06 0.0% 0.0% 20.0% -57.1% -70.0% -87.2%

C yberplex Inc. CAD TS X:CX T S X 77.9 1.30 1.6% 0.0% -23.5% 4.0% 188.9% -34.7%

DADA S pA E UR CM:DA CM 177.4 7.47 -2.9% 6.9% 25.8% 14.9% 2.4% -8.8%

DXN Holdings B hd MYR DXN K LS E 40.9 0.63 -3.8% 2.5% 56.3% 95.3% 78.6% -9.4%

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 0.0% 9.1% 20.0% 252.9% 71.4% -39.4%

DigitalT own, Inc. US D DGTW OTC BB 54.7 2.00 -20.0% 0.0% 0.0% 0.0% 0.0% -42.9%

Dolphin Digital Media, Inc. US D DPDM OTC BB 26.3 0.49 28.9% 6.5% 63.3% -10.9% -48.4% -51.0%

E olith C o. L td. K R W A041060 K OS E 34.9 575.00 -5.0% -23.3% -26.3% -32.4% 6.5% -50.4%

E xtens ions , Inc. US D E XT I OTC P K 11.1 0.25 56.3% 0.0% 212.5% 66.7% 150.0% -75.2%

F luid Mus ic C anada, Inc. CAD TS X:FMN TS X 91.7 1.90 37.7% 31.0% 100.0% 363.4% 375.0% -11.6%

F rogs ter Interactive P ictures AG E UR FR G XTR A 74.7 19.90 -2.9% 14.4% 54.5% 115.1% 373.8% -7.4%

G amania Digita l E ntertainment Co. , L td. TWD 6180 G T S M 228.8 48.85 -2.3% -1.3% -21.5% 51.2% 244.0% -29.0%

G ameOn Co L td. J P Y 3812 T S E 95.6 88,400 -1.9% -9.8% -16.5% -8.7% 33.9% -41.8%

GeoS entric Oyj E UR GE O1V HLS E 65.8 0.05 0.0% 0.0% 25.0% 25.0% 66.7% -16.7%

G iant Interactive G roup, Inc. US D GA NYS E 1,730.0 7.64 0.7% -3.4% -4.3% -11.6% 9.3% -20.2%

G igaMedia L td. US D G IGM NasdaqG S 247.5 4.54 -5.6% -12.4% -7.5% -33.1% -24.2% -41.3%

G ravity Co. , Ltd US D GR VY NasdaqGM 44.5 1.60 -2.4% -14.9% 4.6% 63.3% 77.8% -39.2%

G ree, Inc. J P Y T S E :3632 T S E 2,523.3 5, 040 4.1% 1.0% 46.9% 76.2% NM -5.4%

GungHo Online E ntertainment, Inc. J P Y 3765 OS E 283.1 221,000 1.6% -9.1% 1.5% 59.0% 146.9% -21.0%

HanbitS oft, Inc. K R W A047080 K OS E 65.3 3,560 -12.9% -24.3% -19.5% -19.1% 22.3% -46.4%

IAC /InterActiveC orp. US D IAC I NasdaqG S 2,524.9 19.07 -0.6% -6.7% 6.5% 14.5% 13.8% -10.4%

IAS E nergy, Inc. US D IAS A.E OTC B B 7.4 0.11 5.0% -34.4% -4.5% -58.0% -4.5% -62.5%

is eemedia Inc. CAD IE E T S XV 6.6 0.14 -6.7% 16.7% 75.0% 40.0% 154.5% -12.5%

J umbuck E ntertainment L imited AUD AS X: JMB AS X 14.5 0.34 -10.5% -15.0% -8.1% -26.9% -20.0% -41.9%

K AB Dis tribution Inc. CAD TS X:K AB T S X 0.6 0.01 -50.0% -99.2% -99.2% -98.6% -99.4% -99.2%

K ingsoft C o. L td. HK D 3888 S E HK 1,058.1 7.51 -0.1% -3.3% 4.7% 101.9% 341.8% -20.7%

L ingo Media Corporation CAD TS XV :LM TS XV 11.4 1.00 1.0% -9.1% -9.1% 11.1% -22.5% -31.5%

L iveW orld Inc. US D LVWD OTC P K 1.3 0.04 0.0% -48.8% 10.8% -59.0% -54.4% -83.6%

LookS mart, L td. US D LOOK NasdaqGM 22.6 1.32 10.2% 15.0% 5.8% 0.2% -23.6% -28.5%

Magnitude Information S ys tems Inc. US D MAGY OTC B B 4.1 0.01 -25.0% -10.0% 20.0% -40.0% -35.7% -70.0%

Mixi, Inc. J P Y 2121 T S E 1,270.0 737,000.00 15.2% 17.9% 11.2% 57.1% 28.0% -3.4%

Modern T imes G roup Mtg AB S E K MTG B OM 3,082.3 325.70 -1.0% 7.1% 26.0% 54.0% 97.4% -4.2%

MOKO.mobi L imited AUD MKB AS X 7.3 0.08 0.0% 3.9% 12.9% 6.8% 64.6% -21.0%

Myriad G roup AG CHF MYR N S WX 192.5 4.49 -0.2% 1.8% 5.9% -2.4% -24.9% -40.1%

NE OW IZ G ames Corporation K R W A095660 K OS E 715.5 40,500.00 9.3% -4.9% 29.0% 39.2% 530.4% -9.8%

NetDragon WebS oft, Inc. HK D 777 S E HK 349.9 5.13 3.6% -9.2% -15.3% 11.8% 90.0% -28.3%

Netease. com Inc. US D NTE S NasdaqG S 4,879.4 37.70 -4.2% -15.0% -9.6% 25.3% 67.6% -22.3%

NeuLion Incorporated CAD TS X:NLN T S X 77.2 0.76 -6.2% -24.0% -6.2% 38.2% 16.9% -41.5%

NeXplore Corporation US D NXP C OTC P K 44.1 0.79 12.9% 43.6% 12.9% 58.0% -12.2% -45.5%

Ngi G roup Inc. J P Y 2497 T S E 42.0 30,300.00 7.4% 17.5% -3.3% -20.3% -57.3% -65.1%

Northgate T echnologies L imited INR 590057 B S E 25.8 35.55 -2.1% -17.8% -11.7% -10.7% -55.2% -59.3%

Open T ext Corp. US D OTE X NasdaqG S 2,219.6 39.53 -3.4% 4.5% 7.0% 23.1% 52.3% -4.6%

Openwave S ys tems Inc. US D OPWV NasdaqG S 229.7 2.75 8.7% 7.8% -6.1% 120.0% 266.7% -12.1%

P erfect W orld Co. , Ltd. US D PW R D NasdaqG S 2,218.6 45.11 0.3% 2.4% 31.5% 146.6% 142.1% -10.7%

P NI Digital Media Inc. CAD TS XV :P N T S XV 53.5 1.70 -2.9% -15.8% 14.1% 11.8% -17.1% -26.7%

Quepasa C orp. US D QP S A OTC B B 17.2 1.35 -3.6% -22.0% 35.0% 64.6% -38.1% -42.6%

OAO R BC Information S ys tems US D R BC I R T S 222.0 1.60 6.7% 37.9% 52.4% 62.4% 6.7% -5.9%

S handa Interactive E nterta inment L td. US D S NDA NasdaqG S 3,095.8 46.03 -6.8% -7.9% -7.4% -5.3% 66.5% -29.2%

S hutterfly, Inc. US D S F LY NasdaqG S 369.4 14.51 -8.9% -12.3% -2.0% 36.6% 90.2% -20.0%

S K C ommunications C o. , L td. K R W A066270 K OS E 273.7 7,800.00 -5.0% -11.3% -15.9% -17.0% 53.5% -39.3%

S NAP Interactive, Inc. US D S TV I OTC B B 3.8 0.35 -30.0% -12.5% -22.2% -53.3% 75.0% -67.6%

S NM G loba l Holdings US D S NMN OTC P K 0.0 0.00 -11.8% -48.3% -62.5% -68.8% -98.5% -99.3%

S ocial Media V entures Inc. US D S MV I OTC P K 0.0 0.02 -52.9% -82.6% -93.1% 65.0% -99.5% -99.7%

S ocialwis e, Inc. US D S CLW OTC B B 25.7 0.58 -4.9% -4.9% -24.0% 28.9% -70.6% -74.1%

S ohu.com Inc. US D S OHU NasdaqG S 2,332.6 60.85 -13.1% -9.0% -1.9% 21.6% 10.8% -15.8%

S park Networks , Inc. US D LOV AME X 52.7 2.56 4.1% 10.8% 7.6% 15.3% -17.4% -21.2%

S pectrumDNA, Inc. US D S P XA OTC B B 4.9 0.10 -28.6% -54.5% -28.6% -47.4% -60.0% -77.8%

T encent Holdings Ltd. HK D 700 S E HK 34,855.4 149 8.4% 15.1% 43.7% 125.5% 237.6% -2.2%

T he P arent Company US D K IDS .Q OTC P K 0.2 0.01 0.0% -30.0% -65.0% -41.7% -99.2% -99.3%

T he9 L imited US D NC TY NasdaqG S 201.5 8.03 -9.7% 3.5% -5.4% -14.4% -43.5% -51.7%

T heS treet.com, Inc. US D T S CM NasdaqGM 87.5 2.86 -4.7% -0.3% 36.8% 18.2% -27.4% -31.1%

T ree.C om, Inc. US D TR E E NasdaqGM 84.6 7.83 -0.9% 5.2% -25.5% 32.7% 188.9% -40.1%

Unis erve Communications Corp. CAD TS XV :US S T S XV 1.1 0.05 25.0% 25.0% -50.0% 25.0% -72.2% -50.0%

United Online Inc. US D UNTD NasdaqG S 727.7 8.68 -3.9% 8.5% -3.3% 66.6% 17.3% -8.2%

UOMO Media, Inc US D UOMO OTC BB 8.6 0.10 -9.1% -25.9% -6.5% 25.0% -47.4% -90.6%

V alueC lick Inc. US D VCLK NasdaqG S 1,112.9 12.77 -7.1% 0.3% 10.0% 24.5% 72.6% -8.4%

VOIS , Inc. US D VOIS OTC B B 4.1 0.01 0.0% 11.1% 0.0% 66.7% -33.3% -78.3%

W ebzen Inc. US D WZE N NasdaqGM 34.4 2.90 9.5% -1.1% -19.2% 4.4% 176.4% -38.0%

W izzard S oftware C orporation US D WZE AME X 21.2 0.42 -6.7% -10.6% -16.0% -23.6% -58.0% -75.7%

Worlds .com Inc. US D WDDD OTC B B 5.2 0.10 0.0% 0.0% -9.1% -41.2% -44.4% -58.3%

W ynds torm C orporation US D WYND OTC P K 1.8 0.10 0.0% 0.0% 0.0% 11.1% -50.0% -80.4%

XING AG E UR O1BC XT R A 281.1 36.41 -1.9% 8.7% 21.5% 26.5% 38.7% -4.1%

YD Online C orp. K R W A052770 K OS E 97.4 7,750.00 -4.2% -13.4% -3.0% -11.1% 29.2% -37.5%

Ynk K orea Inc. K R W A023770 K OS E 19.2 4,300.00 6.6% 12.1% -24.8% -19.3% -26.7% -50.6%

High 56.3% 70.0% 212.5% 500.0% 530.4% -2.2%

Low -87.0% -99.2% -99.2% -98.6% -99.5% -99.7%

Average 810.8 -4.0% -8.0% -0.8% 28.1% 40.2% -43.3%Median -2.0% -4.8% -3.3% 14.5% 9.3% -40.1%

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)

TEV/LTM

R evenue

TEV/ NTM

R evenue

TE V/LTM

EB ITDA

TEV/NTM

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

Accelerize New Media , Inc. Direct Marketing United S ta tes OTCB B AC LZ 15.4 4.6x - - - - - -

Actoz S oft C o. , Ltd. G aming S outh K orea KOS E A052790 118.3 0.8x - 3. 3x - 16.7x - 1.8x

AQ Interactive, Inc. G aming J apan T S E 3838 29.4 0.1x 0.1x - - - 8.7x 0.5x

As socia ted Media Holdings Inc. Mobile United S ta tes OTCP K AS MH 0.4 12.6x - - - - - -

B igs tring Corp. Ins tant Messaging United S ta tes OTCB B B S GC 2.0 49.2x - - - - - -

B etawave Corpora tion Media United S ta tes OTCB B BWAV 1.2 - - - - - - 0.2x

B eyond Commerce, Inc. S ocial Networking United S ta tes OTCB B B YOC 5.1 0.9x - - - - - -

B right T hings plc S ocial Networking United K ingdom AIM AIM:B GT 5.4 - - - - - - -

B roadWebAs ia Inc. S ocial Networking United S ta tes OTCP K BWBA 2.5 - - - - - - -

CDC Corp. G aming Hong K ong NasdaqGS CHIN.A 262.8 0.7x 0.8x 10.3x 7.2x - - -

Changyou.com Limited G aming C hina NasdaqGS C YOU 1,721.5 6.0x 4.7x 9. 8x 8.0x 11.8x 10.7x 11.7x

China G ateway Corpora tion Mobile United S ta tes OTCP K CGW Y 0.0 0.0x - - - - - -

C hines e G amer Interna tional G aming T a iwan G T S M GT S M:3083 1,110.0 16.8x 15.8x 29.9x 25.8x 39.4x 23.6x 19.0x

C L IC K E R Inc. Direct Marketing United S ta tes OTCB B C LK Z 0.9 0.4x - - - - - -

C ornerWorld C orporation C ontent United S ta tes OTCB B CW R L 5.7 2.4x - - - - - -

C yberplex Inc. Advertis ing C anada T S X T S X:CX 77.9 0.6x 0.5x 6. 0x 4.7x 7.0x 7.9x 3.1x

DADA S pA S ocial Networking Italy CM CM:DA 177.4 0.9x 0.9x 7. 1x 6.1x - 16.8x -

DXN Holdings B hd S ocial Networking Malays ia K LS E DXN 40.9 0.7x - 5. 0x - 6.8x - 0.9x

Dibz Interna tiona l, Inc. S NS Apps United S ta tes OTCP K DIB Z 0.0 - - - - - - -

DigitalP os t Interactive, Inc. C ontent United S ta tes OTCB B DGLP 4.6 6.7x - - - - - -

DigitalT own, Inc. S ocial Networking United S ta tes OTCB B DGTW 54.7 - - - - - - -

Dolphin Digital Media , Inc. S ocial Networking United S ta tes OTCB B DPDM 26.3 46.9x 1.7x - - - 2.0x -

E olith C o. L td. G aming S outh K orea KOS E A041060 34.9 2.4x - - - - - 3.2x

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 91.7 16.4x 15.7x - - - - 8.6x

F rogs ter Interactive P ictures AG G aming G ermany XT R A F R G 74.7 7.6x - - - - - 9.2x

G amania Digital E ntertainment Co. , Ltd. G aming T a iwan G T S M 6180 228.8 1.5x - 8. 2x - 19.7x - 3.0x

G ameOn Co Ltd. G aming J apan T S E 3812 95.6 0.3x - 1. 0x - 9.5x - 1.1x

G eoS entric Oyj Mobile F inland HLS E GE O1V 65.8 12.1x - - - - - 54.3x

G iant Interactive G roup, Inc. G aming C hina NYS E GA 1,730.0 - - - - 2.1x 15.9x 0.3x

G igaMedia Ltd. G aming T a iwan NasdaqGS G IGM 247.5 0.9x 0.9x - 4.4x 9.8x 9.1x 2.1x

G ravity C o. , Ltd G aming S outh K orea NasdaqGM GR V Y 44.5 - - - - 0.0x - 0.0x

G ree, Inc. S ocial Networking J apan T S E T S E : 3632 2,523.3 15.4x 7.6x 25.7x 13.6x 53.5x 27.5x 24.7x

G ungHo Online E nterta inment, Inc. Media J apan OS E 3765 283.1 2.1x - 9. 4x - 61.2x - 21.1x

HanbitS oft, Inc. G aming S outh K orea KOS E A047080 65.3 0.9x - 36.6x - 11.6x - 1.8x

IAC /InterActiveCorp. Media United S ta tes NasdaqGS IAC I 2,524.9 0.6x 0.6x 14.9x 4.5x 11.9x 33.0x 1.2x

IAS E nergy, Inc. V ideo C anada OTCB B IAS A.E 7.4 - - - - - - -

is eemedia Inc. C ontent C anada T S XV IE E 6.6 3.6x - - - - - 5.4x

J umbuck E ntertainment L imited S ocial Networking Aus tra lia AS X AS X:J MB 14.5 0.5x 0.5x 1. 1x 1.2x 4.1x 3.0x 1.3x

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. Ltd. G aming C hina S E HK 3888 1,058.1 7.6x 6.2x 17.2x 11.8x 21.1x 15.8x 5.9x

Lingo Media C orpora tion Learning C anada T S XV T S XV : LM 11.4 8.8x - - - - - 20.5x

LiveW orld Inc. S ocial Networking United S ta tes OTCP K LVWD 1.3 0.0x - - - - - 0.5x

LookS mart, L td. Direct Marketing United S ta tes NasdaqGM LOOK 22.6 - - - - - - 0.9x

Magnitude Information S ys tems Inc. S ocial Networking United S ta tes OTCB B MAGY 4.1 - - - - - - -

Mixi, Inc. S ocial Networking J apan T S E 2121 1,270.0 8.4x 7.2x 24.9x 23.0x 61.7x 53.8x 8.4x

Modern T imes G roup Mtg AB Media S weden OM MTG B 3,082.3 1.9x 1.8x 12.1x 13.6x 14.7x 16.4x -

MOKO .mobi L imited S ocial Networking Aus tra lia AS X MK B 7.3 9.1x - - - - - 7.5x

Myriad G roup AG Mobile S witzerland S W X MYR N 192.5 3.0x - - - - - -

NE OW IZ G ames Corporation G aming S outh K orea KOS E A095660 715.5 3.4x 3.0x 12.7x 9.8x 37.2x 14.4x 18.8x

NetDragon W ebS oft, Inc. G aming C hina S E HK 777 349.9 2.3x 1.6x 8. 0x 4.4x 14.3x 11.4x 1.9x

Netease.com Inc. G aming C hina NasdaqGS NT E S 4,879.4 - - - - 2.8x 15.1x 0.8x

NeuLion Incorporated V ideo C anada T S X T S X:NLN 77.2 3.1x - - - - - 5.8x

NeXplore Corporation C ontent United S ta tes OTCP K NXPC 44.1 28.3x - - - - - -

Ngi G roup Inc. Media J apan T S E 2497 42.0 - - - - - - 0.8x

Northgate T echnologies L imited Direct Marketing India B S E 590057 25.8 0.3x - - - - 1.4x -

Open T ext C orp. C ollabora tion C anada NasdaqGS OT E X 2,219.6 2.9x 2.6x 11.0x 9.1x 37.0x 14.0x -

Openwave S ys tems Inc. Mobile United S ta tes NasdaqGS OPWV 229.7 0.6x 0.6x 24.6x 5.5x - 34.4x 3.3x

P erfect W orld C o. , Ltd. G aming C hina NasdaqGS PWR D 2,218.6 0.7x 3.5x 1. 3x 6.6x 3.2x 14.3x 1.5x

P NI Digital Media Inc. Digita l Imaging C anada T S XV T S XV :P N 53.5 2.5x 2.0x 22.3x 6.7x - 13.6x 18.7x

Quepasa C orp. S ocial Networking United S ta tes OTCB B QP S A 17.2 - - - - - - -

OAO R B C Information S ys tems Media R uss ia R T S R B C I 222.0 0.0x 1.0x 0. 4x 5.7x - 6.5x -

S handa Interactive E nterta inment Ltd. G aming C hina NasdaqGS S NDA 3,095.8 - - - - 2.2x 12.7x 0.9x

S hutterfly, Inc. Digita l Imaging United S ta tes NasdaqGS S FLY 369.4 1.4x 1.4x 11.2x 7.2x - - 2.2x

S K Communications Co. , Ltd. S earch S outh K orea KOS E A066270 273.7 1.4x - 21.8x - - - -

S NAP Interactive, Inc. Dating United S ta tes OTCB B S T V I 3.8 0.6x - 2. 3x - 6.7x - 2.1x

S NM G lobal Holdings Media United S ta tes OTCP K S NMN 0.0 1.1x - - - - - -

S ocial Media V entures Inc. S ocial Networking United S ta tes OTCP K S MV I 0.0 4.5x - - - - - -

S ocialwise, Inc. S ocial Networking United S ta tes OTCB B S CLW 25.7 - - - - - - -

S ohu.com Inc. G aming C hina NasdaqGS S OHU 2,332.6 3.8x 3.2x 8. 7x 7.0x 13.8x 16.0x 4.6x

S park Networks , Inc. S ocial Networking United S ta tes AME X LOV 52.7 1.0x - 4. 7x - 14.4x - 53.9x

S pectrumDNA, Inc. Media United S ta tes OTCB B S P XA 4.9 39.9x - - - - - 48.5x

T encent Holdings Ltd. P orta l C hina S E HK 700 34,855.4 27.6x 21.0x - - 71.2x 58.8x 31.7x

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 NasdaqGS NCTY 201.5 - - - - 2.3x - 0.1x

T heS treet.com, Inc. Media United S ta tes NasdaqGM TS CM 87.5 0.3x 0.4x 11.8x - - - 1.1x

T ree.C om, Inc. P orta l United S ta tes NasdaqGM T R E E 84.6 0.4x 0.4x - 8.1x - 50.4x 1.1x

Uniserve C ommunications Corp. S ocial Networking C anada T S XV T S XV :US S 1.1 0.2x - - - - - -

United Online Inc. Media United S ta tes NasdaqGS UNTD 727.7 1.0x 1.0x 4. 9x 4.2x - 6.6x -

UOMO Media , Inc Media C anada OTCB B UOMO 8.6 11.5x - - - - - -

V a lueC lick Inc. Media United S ta tes NasdaqGS VCLK 1,112.9 1.7x 1.8x 9. 9x 7.0x - 20.0x 7.2x

VO IS , Inc. S ocial Networking United S ta tes OTCB B VOIS 4.1 - - - - - - 26.3x

W ebzen Inc. G aming S outh K orea NasdaqGM WZE N 34.4 - - - - 0.0x - 0.0x

W izzard S oftware Corporation P odcas ting United S ta tes AME X WZE 21.2 4.2x - - - - - -

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

W ynds torm C orporation C ontent United S ta tes OTCP K W YND 1.8 - - - - - - -

X ING AG S ocial Networking G ermany XT R A O1B C 281.1 3.9x 2.9x 13.5x 8.1x 28.9x 16.5x 9.0x

YD Online Corp. G aming S outh K orea KOS E A052770 97.4 1.9x 1.4x 8. 6x 4.7x 10.3x - 3.2x

Y nk K orea Inc. G aming S outh K orea KOS E A023770 19.2 1.5x - 14.6x - - - 0.9x

High 34,855.4 49.2x 21.0x 36.6x 25.8x 71.2x 58.8x 54.3x

Low 0.0 0.0x 0.1x 0. 4x 1.2x 0.0x 1.4x 0.0x

Average 810.8 6.1x 3.5x 11.8x 8.5x 19.0x 18.3x 8.7xMedian 44.5 1.9x 1.6x 9. 9x 7.0x 11.9x 14.7x 3.0x

Figure 20. Valuation Comparison Source. Capital IQ

Comparable Company Analys is > Web 2.0Summary by Country

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

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

Canada 10 United S ta tes 5,811.3 S weden 2,974.2 United S tates 3,887.3 S weden 304.6 Aus tralia 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 aiwan 577.9 Canada 1,015.0 Canada 200.0 J apan 24.2%

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

Ta iwan 3 Ta iwan 1,733.6 C anada 248.8 J apan 634.4 S outh K orea 121.9 Malays ia 14.4%

Aus tralia 2 S outh K orea 1,527.4 S outh K orea 190.9 T a iwan 385.8 T a iwan 59.8 Italy 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 Germany 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 ta tes 152.9 India 82.8 Germany 12.5 S witzerland 1.9%

Ita ly 1 S witzerland 92.0 S witzerland 92.0 Malays ia 77.1 Malays ia 11.1 C anada -8.5%

United K ingdom 1 F inland 65.9 F inland 65.9 Germany 68.7 Aus tralia 4.5 G ermany -9.1%

India 1 Malays ia 39.8 Malays ia 39.8 S witzerland 40.0 S witzerland 0.8 United S ta tes -21.9%

S weden 1 India 31.0 India 31.0 Aus tralia 17.8 Norway -1.1 India -50.0%

R us s ia 1 Aus tralia 22.1 Aus tralia 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 NA

Norway 1 Norway 0.1 Norway 0.1 United K ingdom 0.0 India -41.4 F inland NA

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) E B ITDA %

OTCB B 18 S E HK 31,520.4 S E HK 10,506.8 OM 1,982.6 NasdaqGS 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 NasdaqGS 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 GT S 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 KOS 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 GT S M 59.8 OS E 22.2%

TS XV 4 XTR A 317.0 KOS E 239.5 KOS 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 TS 160.9 GT S M 101.1 R T S 20.4 CM 13.1%

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

XTR A 2 OTCB B 230.9 S W X 92.0 NasdaqGM 82.4 XTR 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%

SWX 1 R TS 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 NasdaqGM 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 W X 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 OTCP 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 OTCB B -38.8%

AIM 1 K LS E 39.8 OTCB B 12.8 AS X 8.9 T S XV -4.6 OTCP 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 OTCP K -34.1 OTCNO -50.6%

K LS E 1 AIM 6.0 OTCP K 6.0 OTCNO 2.3 B S E -41.4 AIM NA

OTCNO 1 OTCNO 0.1 OTCNO 0.1 AIM 0.0 OTCB B -62.4 HLS E NA

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)Fin. Amount (Million) Type of financ ing

Month Company Name Country Angel/S eed Debt financ ing S eries A S eries B Series C S eries D S eries E Grand Total

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

Fanbas e 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

Ches sCube S outh Africa 1. 3 1.3

Links ify US A 0.5 0.5

iS yndica US A 0.4 0.4

DailyBooth US A 0.0 0.0

Aug-09 Total 25.8 11.5 77.6 43.6 63.2 221.6

S ep-09 Twitter US A 100.0 100. 0

Ens equence US A 20.0 20. 0

Livebookings UK 16.0 16. 0

Mzinga US A 10.0 10. 0

InXpo US A 9.0 9.0

J obvite US A 8.3 8.3

R iot Games US A 8.0 8.0

NextB io US A 8.0 8.0

Imeem US A 6.0 6.0

Vuc lip US A 6.0 6.0

YuMe US A 5.0 5.0

Booyah US A 5.0 5.0

NeoEdge US A 4.0 4.0

Alliance Health Networks US A 3.3 3.3

Unis fair US A 3.1 3.1

Conduit Labs US A 3.0 3.0

Mocapay US A 3.0 3.0

Fwix US A 2.8 2.8

Vantrix Canada 2.6 2.6

MashLogic US A 2.5 2.5

Greys tripe US A 2.0 2.0

Loomia US A 1.5 1.5

FourSquare US A 1.4 1.4

EduFire US A 1.3 1.3

Fluther US A 0.6 0.6

TransGaming Inc. Canada 0. 5 0.5

OnL ive US A

S ep-09 Total 0.6 2.0 16.9 52.3 27.9 23.1 110.0 232.8

Oct-09 DailyMotion F rance 25.3 25. 3

PopCap Games US A 22.5 22. 5

Engine Yard US A 19.0 19. 0

HubSpot US A 16.0 16. 0

J ive S oftware US A 12.0 12. 0

Spigit US A 10.0 10. 0

Ooyala US A 10.0 10. 0

Reality Mobile US A 6.5 6.5

Watercooler US A 5.5 5.5

Vdopia US A 4.7 4.7

Sometrics US A 4.0 4.0

Amie S treet US A 3.9 3.9

ViVu US A 3.0 3.0

Fizzback UK 2.6 2.6

Technorati US A 2.0 2.0

DataS ync US A 1.2 1.2

DailyBooth US A 1.0 1.0

Linkedex UK 1.0 1.0

Chango C anada 0.7 0.7

Lis tia US A 0.4 0.4

Oct-09 Total 2.4 38.6 48.0 60.3 2.0 151.2

Grand Total 28.8 2.0 67.0 177.8 131.7 88.3 110.0 605.6

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

Company Descriptions - Current Month Capital Market ActivityCompany HQ Webs ite Description

Amie S treet United S tates www.amies treet. com Amie S treet, Inc. , a Web based socia l mus ic s tore, enables members to dis cover, download, and share mus ic. The company was founded in

2006 and is based in Long Is land C ity, New Y ork .

Aviary United S tates www.aviary. com Aviary is a collabora tive creative s uite for artis ts of a ll genres . Available both on and offline, via Adobe’s F lex and Air technologies

respectively, Avia ry enables artis ts to create on the fly with an inventory of tools for every medium. F rom image editing to typography to

mus ic to 3D to video, artis ts can crea te and collaborate us ing the company's free and light software.

Chango Canada www.chango.com Chango Inc. provides online advertis ing s olution. T he company provides keyword ta rgeted P P C campaigns and S earch E engine Marketing

(S E M) campaigns . C hango Inc. was founded in 2008 and is bas ed in T oronto, C anada.

Daily Booth United S tates www.da ilybooth.com DailyB ooth lets us ers follow their friends and update them in real-time through the use of pictures and s ta tus updates .

DailyMotion F rance www.da ilymotion.com Dailymotion S AR L provides on-line video content in F rance and E urope. It operates a video enterta inment Webs ite tha t provides video

sha ring services . T he company a ls o enables sharing of officia l and profes s ional contents . Dailymotion S AR L was founded in 2005 and is

bas ed in P aris , F rance.

DataSync United S tates www.datas yncs uite. com DataS ync Corporation develops open source consolida tion software. T he company develops DataS ync S uite, a software pla tform tha t

integrates core applica tions into an open s ource s oftware-as -a-service web porta l. DataS ync Corporation was founded in 2005 and is based

in S ioux F alls , S outh Dakota .

E cas t Network United S tates www.ecas tinc.com E cas t, Inc. opera tes a broadband touch s creen media network in the United S tates . T he company’s network delivers digita l mus ic, games ,

enterta inment, information, and advertis ing to bars and nightclubs . Its platform als o delivers on-demand content, including videos and

surveys ; supports third-party applications ; and allows integration of W eb services , such as mobile, e-commerce, and socia l media , including

photo s haring. The company was founded in 1999 and is bas ed in S an F rancis co, C a lifornia .

E ngine Yard United S tates www.engineya rd.com E ngine Y a rd, Inc. provides managed hos ting and deployment solutions for R uby and R a ils applica tions . The company offers a clus ter

computing platform, deployment s upport, and data center s ervices . It helps its clients in building s ites and applica tions on-demand. E ngine

Y ard, Inc. was founded in 2006 and is bas ed in S an F rancis co, C alifornia with additional loca tions in the United S tates , C anada, E urope,

Is rael, the P hilippines , Aus tra lia , and New Zealand.

FeedRoom United S tates www. feedroom.com The F eedR oom, Inc. provides Web video solutions and technology for corporations , media /publishing organizations , and government

agencies . It offers broadband video dis tribution for Web, s earch engines , and podcas ting; broadband video encoding, management, and

delivery; performance reporting; broadband video application des ign and development; media advertis ing services ; subscription and

regis tra tion tools ; email video a lert delivery and tracking; and origina l content development and production. T he company was founded in

1999 and is based in New Y ork , New Y ork . As of S eptember 30, 2009, The FeedR oom, Inc. operates as a subs idiary of K IT digita l, Inc.

Fizzback UK www2. fizzback.com The F izzback G roup L imited provides an on-demand solution that drives cus tomer engagement at the point-of-experience. Its solution helps

companies to lis ten, respond, and act in rea l-time to their cus tomers ' comments . T he F izzback G roup was formerly known as Ins tant Market

Intelligence L imited and changed its name to T he F izzback G roup L imited in J anua ry 2007. The company was founded in 2004 and is bas ed

in London, the United K ingdom.

HubSpot United S tates www.hubspot.com HubS pot, Inc. offers B 2B inbound marketing s oftware. Its products include HubS pot Owner, which generates qualified leads and convert

leads into s a les ; and HubS pot Marketer that offers inbound marketing tools . T he company a lso provides s earch engine optimization,

bus ines s blogging, competitor analys is , clos ed-loop marketing analytics , W ebs ite editor, lead tracking and intelligence, lead grader, landing

page wizard, marketing intelligence, socia l media , and inbound marketing solutions . HubS pot, Inc. was founded in 2006 and is based in

C ambridge, Mas sachusetts .J ive Software United S tates www. jivesoftware.com J ive S oftware, Inc. develops , markets , and sells s ocia l productivity and community software solutions for enterpris es in the United S ta tes and

internationa lly. Its products include C learspace, an enterpris e collabora tion s oftware, which applies a people-centric approach to facilitate

workforce networking and collaboration applications ; C learspace Community, an enterpris e-clas s community s oftware that is us ed to build

large online communities , as well as to engage cus tomers , and build brands and marketing initiatives ; and C lears tep, an online community

solution for s ocia l and enterpris e 2.0 profes s ionals . T he company a lso offers s trategic and technical consulting services . T he company was

founded in 2001 and is based in P ortland, Oregon.

L inkedex UK NA B as ed in London and S an F rancis co, L inkedex a ims to help companies analyse the proces s by which s earch engines deliver their res ults

and achieve higher rankings in natural (non-paid-for) s earch for their brands and services .

L is tia United S tates www. lis tia . com Lis tia , which launched in Augus t 2009, is eB ay for free s tuff. Users get a certa in number of credits which they bid for the item, so whoever

wins the auction is the person who wanted it the mos t. Us ers get credits in three ways : every us er gets a certa in number automatically, and

you can get more by auctioning items , by referring friends , and by buying them. The company is bas ed in S unnyvale, C a lifornia .

Ooyala United S tates www.ooya la . com Ooya la is a video technology company that provides indus try-leading solutions for managing, dis tributing and monetizing high-qua lity video

online. F ounded by former Google engineers in April 2007, Ooyala takes a novel approach at delivering video, targeting ads and collecting

video analytics . S ince launching its flagship product, B ack lot, in December of 2007, Ooyala has s igned up over 1000 paying cus tomers

including W arner B rothers , AOL/B ebo, National Geographic, T V Guide and the G lam network. T he company is based in Mountain V iew,

C alifornia .Overtone United S tates www.overtone-inc.com Overtone, Inc. delivers brand monitoring and engagement to va rious enterpris es . It offers Open Mic s oftware-as -a -s ervice integrated lis tening

s ys tem, which delivers actionable ins ights from consumer comments and extracts actionable intelligence from uns tructured cus tomer-

genera ted content. The company’s Open Mic a lso provides rea l time proces s ing, multi-channel lis tening, and proven s calability. Overtone,

Inc. was formerly known as Is land Data Corpora tion. T he company was founded in 1995 and is based in S an F rancis co, C alifornia . As of

01/05/2004, Overtone, Inc. is a subs idiary of L iveP ers on, Inc.

PopCap Games United S tates www.popcap.com PopC ap Games , Inc. develops and publishes casual games . Its games a re played on the Web, des ktop computers , cell phones ,

smartphones , P DAs , pocket P C s , iP ods , iP hones , game cons oles , and in-flight enterta inment s ys tems . T he company offers its products to

Web porta ls , reta il s tores , mobile opera tors and developers , and game device manufacturers . P opCap Games , Inc. was founded in 2000

and is bas ed in S eattle , W ashington. It has operations in Chicago, I llinois ; S an F rancis co, C alifornia ; S hanghai, C hina; Dublin, Ireland; and

V ancouver, B .C . , C anada.Reality Mobile United S tates www. realitymobile. com R eality Mobile LLC provides mobile video and data sha ring technology. T he company was founded in 2003 and is based in Herndon,

V irginia .S cout Labs United S tates www.s coutlabs .com S cout Labs is a powerful, web-based application that finds s ignals in the noise to companies build better products and s tronger cus tomer

relationships . T he company provides technology and a collaborative platform for companies and their agents to lis ten to cus tomers and

engage with them out acros s the Internet.

S ometrics United S tates sometrics . com S ometrics , Inc. operates as an ana lytics and ad platform s tartup company specia liz ing in s ocia l media . It offers analytics and ad managing

solutions that focus on s ocia l networking platforms and applications . T he company a ls o provides socia l advertis ing s olutions , s uch as

dis plays , engagements , and brand as ses sments , as well as s ocia l planners for advertis ers . In addition, it offers S ocia l Analytics that provide

analys is for s ocia l applications and Webs ites ; S ocia l Ad Manager that helps to s erve and optimize ads to increase revenue acros s socia l

media properties ; and V irtual C urrency Manager, a virtual currency platform des igned to provide an interface to manage dispa ra te offer

networks and relationships for publishers . The company supports F acebook , Myspace, B ebo, F riends ter, and hi5 platforms . S ometrics , Inc.

was founded in 2007 and is headquartered in Los Angeles , C alifornia .

S pigit United S tates www.s pigit. com S pigit, Inc. des igns , develops , and dis tributes socia l network ing s oftware for bus ines s innovation. It provides s trategic and technical

consulting, webs ite des igning, project forecas ting, C R M applications , employee engagement track ing, web logs , and currency and idea

management s ervices . The company markets its products under Innova tionS pigit, IdeaS pigit, and P redictionS pigit brand names . S pigit, Inc.

is based in P leasanton, C alifornia .

Technorati United S tates www. technorati. com Technora ti, Inc. engages in s earching, surfacing, and organiz ing blogs and us er-generated content on the W eb. It offers various citizen

media on the Web, which include blogs , videos , vlogs , podcas ts , photos , and games . The company was founded in 2002 and is based in

S an F rancis co, C alifornia .

Vdopia United S tates www.vdopia . com Vdopia , Inc. operates a s an online video advertis ing network and platform company. It enables advertis ers in India to advertis e on the online

video content. T he company's s olutions to content owners and publishers include V DOAd network to advertis e on video content; V DOAd

pla tform with campaign management tools to offer online video advertis ing to advertis ers /cus tomers ; B randConnect Ad technology to deliver

C PMs ; analytic tools to provide s tatis tics about ads and video analytics for client’s videos ; and AP Is to crea te/publish content. Its s olutions to

advertis ers , media planners , and marketers include publis her network, brand connect with various ad formats on various online Internet TV

channels , advertis ing, meas urable branding, and reporting. V dopia , Inc. was incorporated in 2007 and is bas ed in S an J ose, C alifornia with

s a les and development offices in S an J ose, C alifornia ; and G urgaon and Mumbai, India .

VEVO United S tates www.vevo.com V E VO opera tes as a mus ic video web s ite. The company is bas ed in the United S tates .

ViVu United S tates www.vivu. tv V iV u, Inc. develops participative event platform that enables live video participa tion from a pers onal computer, Mac, and L inux without any

proprietary downloads . It offers a solution for event organizers to create, publish, and manage quality video events . T he company was

incorporated in 2008 and is bas ed in S unnyvale, C alifornia .

Watercooler United S tates www.watercooler-inc.com Watercooler, Inc. operates F anS ection and TV Loop online communities that enable us ers to acces s a network of online fan communities in

sports and televis ion enterta inment in the United S tates and internationally. \T he company was founded in 2006 and is based in Mountain

V iew, C alifornia .

Yext United S tates www.yext. com Y ext, Inc. provides online directories . It focuses on repres enting va rious bus ines s es acros s the United S tates . T he company was founded in

2006 and is based in New Y ork , New Y ork .

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

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L IST OF D IS CLOS URE TE RMS :

1. None applicable.

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09 10 27 Web 2.0 Weekly

Technology

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