09 11 17 Web 2.0 Weekly

SOFTWARE & SERVICES 17 NOVEMBER 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

FINANCINGS PICK UP…IN LINE WITH TREND

CAPITAL MARKETS ACTIVITY P ICKS UP SUDDENLY November picks up: Total transaction value in the Web 2.0 universe for November is $131.9 mil lion. November has shown improvement with number of f inancings up to 14 averaging $9.4 mill ion each (vs. an average of $7.4 mill ion last week). In comparison, total capital raised in October was $171.3 mill ion, averaging $6.3 mill ion (27 deals); September was $232.8 mil lion, averaging $9.0 mil lion (26 deals); and August was $221.6 mill ion, averaging $7.6 mil lion (29 deals).

Financing Activity Last Twelve Months

6.76.5

7.1

6.66.2

14.6

4.9

5.6

7.6

9.0

6.3

9.4

11.1

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

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

(US

$m

)

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

(US

$m

)

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

Market pull-back: Sixteen companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), while 30 companies showed negative 1-week returns.

1 Week Price Performance

-17.7%-15.6%

-13.2%-9.8%

-8.4%-7.6%-7.1%-7.0%

-6.2%-6.0%-5.5%-5.4%

-4.3%-4.2%-3.8%-3.8%-3.7%-3.6%-3.6%-3.3%-2.6%-2.5%-2.3%-2.0%-1.9%-1.6%-1.3%-1.2%-1.1%-1.0%

0.0%0.0%

0.8%1.2%1.2%1.4%1.6%2.0%

3.0%3.2%3.7%4.1%

5.9%6.5%6.7%

9.0%14.1%

15.8%

-0.2 -0.15 -0.1 -0.05 0 0.05 0.1 0.15 0.2

Gree, Inc .AQ Interactive, Inc .

Mix i, Inc .Ngi Group Inc .

Y D Online Corp.Perfect World Co. , L td.

Quepas a Corp.Grav ity Co. , L tdTree.Com, Inc .The9 L imited

Northgate Technologies L imitedGameOn Co Ltd.LookSmart, L td.

Webz en Inc .K ings of t Co. L td.HanbitS of t, Inc .

G iant Interactive Group, Inc .DADA S pA

Cyberplex Inc .Frogs ter Interactive Pic tures

S park Netw orks , Inc .S handa InteractiveMyriad Group AGOpen Tex t Corp.

NetDragon WebS of t, Inc .S ohu.com Inc .

United Online Inc .Neteas e.com Inc .

PNI Digita l Media Inc .V a lueClick Inc .Eolith Co. L td.

Fluid Mus ic Canada, Inc .CDC Corp.

TheS treet. com, Inc .XING AG

S hutterf ly , Inc .IA C/InterA ctiveCorp.

S K Communications Co. , L td.Chines e Gamer International

Gamania Digita l Enterta inmentModern Times Group Mtg A B

Changyou.com L imitedNEOWIZ Games Corporation

Actoz S oft Co. , L td.Tencent Holdings Ltd.

Y nk Korea Inc .G igaMedia Ltd.

Openw ave S ys tems Inc .

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 bill ion (Figure 1). The median market cap for the group is $41 mill ion, with average trail ing revenue of $163 mil lion (median $56 mill ion). The companies are also generally profitable with a median EBITDA margin of 11.6%. On a valuation basis, the overall average is 5.1x trai ling revenue (median 1.7x) and 11.1x trail ing EBITDA (median 7.8x). 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 0.73 20.4 4.4 (3.7) -83.3% 5.7x - 11

Actoz S oft C o. , Ltd. 6/30/2009 A052790 K OS E KR W S outh K orea 16,450 119.5 108.7 25.9 23.8% 0.8x 3.4x NA

AQ Interactive, Inc. 6/30/2009 3838 T S E J P Y J apan 40,000 24.3 66.1 (2.0) -2.9% 0.0x - NA

Associated Media Holdings Inc. 6/30/2007 AS MH OTCP K US D United S ta tes 0.76 32.9 0.1 (2.3) NM - - 3

B igs tring C orp. 6/30/2009 B S GC OTCB B US D United S ta tes 0.03 1.9 0.1 (1.5) NM 47.2x - 4

B etawave C orporation 6/30/2009 BW AV OTCB B US D United S ta tes 0.04 1.0 9.4 (12.6) NM - - 51

B eyond C ommerce, Inc. 6/30/2009 B YOC OTCB B US D United S ta tes 0.06 3.0 11.7 (12.8) NM 0.8x - 101

B right Things plc 3/31/2009 AIM:B G T AIM GB P United K ingdom 0.01 5.1 0.0 (2.7) NM - - NA

B roadWebAs ia Inc. 9/30/2008 BW BA OTCP K US D United S ta tes 0.07 5.9 0.0 (4.6) NM - - 46

CDC C orp. 6/30/2009 CHIN.A NasdaqGS US D Hong K ong 2.54 269.2 361.6 25.1 6.9% 0.7x 10.5x 2,227

#R E F ! 9/30/2009 C YOU NasdaqGS US D China 34.50 1,897.5 255.3 157.4 61.7% 6.2x 10.1x 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 9/30/2009 G T S M:3083 G T S M TWD T aiwan 458 1,186.5 68.3 39.6 58.0% 16.2x 27.9x NA

C LIC K E R Inc. 5/31/2009 C LK Z OTCB B US D United S ta tes 0.01 0.6 2.5 (1.2) -45.8% 0.3x - 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 81.1 89.8 9.7 10.8% 0.7x 6.3x NA

DADA S pA 6/30/2009 CM:DA CM E UR Italy 7.09 168.2 241.9 31.8 13.1% 0.9x 6.8x NA

DXN Holdings B hd 8/31/2009 DXN K LS E MYR Ma lays ia 0.62 40.5 77.3 (84.0) NM 0.7x - 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 6.6x - 7

Digita lT own, Inc. 8/31/2009 DGTW OTCB B US D United S ta tes 1.20 32.8 0.0 (1.8) NM - - 3

Dolphin Digita l Media , Inc. 6/30/2009 DPDM OTCB B US D United S ta tes 0.33 17.7 0.6 (3.4) NM 32.1x - NA

E olith Co. Ltd. 12/31/2008 A041060 K OS E KR W S outh K orea 570 34.6 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 0.30 13.3 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 1.80 86.8 5.3 (5.1) -95.2% 15.4x - NA

F rogs ter Interactive P ictures AG 6/30/2009 F R G XT R A E UR Germany 18.05 67.7 9.6 (4.5) -47.0% 6.9x - NA

G amania Digita l E ntertainment C o. , Ltd. 9/30/2009 6180 G T S M TWD T aiwan 46.50 217.8 151.2 24.9 16.5% 1.3x 7.8x NA

G ameOn C o Ltd. 6/30/2009 3812 T S E J P Y J apan 68,300 73.9 81.9 20.1 24.5% - - NA

G eoS entric Oyj 6/30/2009 G E O1V HLS E E UR F inland 0.06 78.9 5.4 (17.4) NM 14.5x - 115

G iant Interactive G roup, Inc. 6/30/2009 GA NY S E US D China 7 1,587.4 198.5 124.1 62.5% - - 1,570

G igaMedia Ltd. 3/31/2009 G IGM NasdaqGS US D T aiwan 4.36 237.7 183.6 NM NM 0.9x - 751

G ravity Co. , Ltd 6/30/2009 GR V Y NasdaqGM US D S outh K orea 1.46 40.6 49.1 16.6 33.9% - - 469

G ree, Inc. 9/30/2009 T S E :3632 T S E J P Y J apan 4 ,450 2,227.9 210.3 122.2 58.1% 10.1x 17.4x NA

GungHo Online E ntertainment, Inc. 6/30/2009 3765 OS E J P Y J apan 169,000 216.5 119.5 26.6 22.2% 1.5x 6.9x NA

HanbitS oft, Inc. 6/30/2009 A047080 K OS E KR W S outh K orea 3 ,445 63.2 60.7 1.4 2.3% 0.8x 35.1x NA

IAC /InterActiveC orp. 9/30/2009 IAC I NasdaqGS US D United S ta tes 19.93 2,630.2 1,359.6 82.4 6.1% 0.7x 12.0x 3,200

IAS E nergy, Inc. 4/30/2009 IAS A.E OTCB B US D C anada 0.12 8.5 0.0 (0.6) NM - - NA

is eemedia Inc. 6/30/2009 IE E T S XV CAD Canada 0.17 8.2 1.7 (4.5) NM 4.7x - NA

J umbuck E nterta inment L imited 6/30/2009 AS X:J MB AS X AUD Aus tralia 0.33 14.0 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 7 1,033.9 139.1 61.4 44.2% 7.4x 16.7x 2,463

L ingo Media C orporation 6/30/2009 T S XV :LM T S XV CAD Canada 0.99 11.3 1.2 (1.9) NM 8.7x - NA

L iveW orld Inc. 9/30/2009 LVWD OTCP K US D United S ta tes 0.03 1.0 10.4 0.4 4.1% - - NA

LookS mart, Ltd. 9/30/2009 LOOK NasdaqGM US D United S ta tes 1.12 19.2 54.0 (4.5) -8.4% - - 90

Magnitude Information S ys tems Inc. 6/30/2009 MAGY OTCB B US D United S ta tes 0.02 8.6 0.1 (2.5) NM - - 14

Mixi, Inc. 9/30/2009 2121 T S E J P Y J apan 642000.00 1,106.3 139.6 46.2 33.1% 7.0x 21.1x NA

Modern T imes G roup Mtg AB 9/30/2009 MTG B OM S E K S weden 335.00 3,170.3 2,002.6 282.9 14.1% 1.9x 13.1x 2,969

MOKO.mobi L imited 6/30/2009 MK B AS X AUD Aus tralia 0.09 8.3 0.7 (2.4) NM 10.6x - NA

Myriad G roup AG 6/30/2009 MY R N S W X CHF S witzerland 4.68 200.7 63.0 3.4 5.4% 3.1x - 405

NE OW IZ G ames Corpora tion 12/31/2008 A095660 K OS E KR W S outh K orea 41550.00 734.0 207.3 55.7 26.8% 3.5x 13.0x NA

NetDragon W ebS oft, Inc. 6/30/2009 777 S E HK HKD China 5 344.4 89.3 25.7 28.7% 2.2x 7.7x 3,109

Netease.com Inc. 6/30/2009 NT E S NasdaqGS US D China 41.48 5,368.6 472.4 297.4 63.0% - - 3,109

NeuLion Incorporated 6/30/2009 T S X:NLN T S X CAD Canada 0.72 77.1 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 38.5 1.7 (13.3) NM 25.0x - NA

Ngi G roup Inc. 6/30/2009 2497 T S E J P Y J apan 24000.00 33.2 93.0 6.9 7.4% - - NA

Northgate T echnologies L imited 6/30/2009 590057 B S E INR India 29.15 21.2 82.9 (41.5) -50.0% 0.3x - NA

Open T ext C orp. 9/30/2009 OT E X NasdaqGS US D C anada 38.24 2,156.0 814.5 211.1 25.9% 2.7x 10.5x 3,900

Openwave S ys tems Inc. 9/30/2009 OPW V NasdaqGS US D United S ta tes 2.49 208.0 190.5 6.2 3.3% 0.5x 16.6x 590

P erfect W orld C o. , Ltd. 6/30/2009 PW R D NasdaqGS US D China 45.37 2,286.3 255.6 142.2 55.6% 0.8x 1.4x 2,096

P NI Digita l Media Inc. 6/30/2009 T S XV :P N T S XV CAD Canada 1.74 54.7 21.0 2.3 11.0% 2.5x 22.8x NA

Quepasa C orp. 6/30/2009 QP S A OTCB B US D United S ta tes 1 16.6 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 49.13 3,304.2 629.0 296.7 47.2% - - 3,124

S hutterfly, Inc. 9/30/2009 S FLY NasdaqGS US D United S ta tes 15.76 404.6 223.1 27.0 12.1% 1.3x 10.8x 514

S K C ommunications C o. , Ltd. 12/31/2008 A066270 K OS E KR W S outh K orea 7290.00 255.8 192.7 12.5 6.5% 1.3x 20.4x NA

S NAP Interactive, Inc. 6/30/2009 S T V I OTC B B US D United S ta tes 0 2.2 3.5 0 .9 27.0% 0.2x 0.6x 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 0.51 22.6 0.0 (5.6) NM - - NA

S ohu.com Inc. 9/30/2009 S OHU NasdaqGS US D China 56.94 2,189.7 501.0 218.4 43.6% 3.3x 7.5x 3,197

S park Networks , Inc. 9/30/2009 LOV AME X US D United S ta tes 3 53.5 47.5 10.0 21.0% 1.0x 5.0x 183

S pectrumDNA, Inc. 6/30/2009 S P XA OTCB B US D United S ta tes 0 7.3 0.1 (2.5) NM - - 7

T encent Holdings Ltd. 6/30/2009 700 S E HK HKD China 148 34,735.2 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 7.41 185.9 250.6 85.5 34.1% - - 1,626

T heS treet. com, Inc. 3/31/2009 T S CM NasdaqGM US D United S ta tes 2.48 75.9 67.0 1.9 2.9% 0.2x 5.8x 310

T ree.C om, Inc. 9/30/2009 T R E E NasdaqGM US D United S ta tes 7.30 79.6 217.1 9.7 4.5% 0.2x 5.5x 700

Unis erve C ommunica tions C orp. 8/31/2009 T S XV :US S T S XV CAD Canada 0.04 0.8 16.1 0.1 0.9% 0.3x 36.4x NA

United Online Inc. 9/30/2009 UNTD NasdaqGS US D United S ta tes 8.22 695.3 996.8 214.9 21.6% 1.0x 4.4x 1,469

UOMO Media , Inc 7/31/2009 UOMO OTCB B US D C anada 0 5.9 0.8 (0.4) -54.2% 8.0x - NA

V alueC lick Inc. 9/30/2009 V C LK NasdaqGS US D United S ta tes 10 882.4 545.7 130.8 24.0% 1.3x 5.5x 1,189

V OIS , Inc. 6/30/2009 VOIS OTCB B US D United S ta tes 0 5.5 0.0 (1.0) NM - - 4

W ebzen Inc. 6/30/2009 W ZE N NasdaqGM US D S outh K orea 2.96 35.1 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 0.49 24.6 5.3 (4.5) -84.9% 4.8x - 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 32.70 252.5 58.9 17.0 28.8% 3.4x 11.8x 246

YD Online C orp. 12/31/2007 A052770 K OS E KR W S outh K orea 6520.00 82.0 57.4 12.4 21.6% 1.6x 7.3x NA

Ynk K orea Inc. 12/31/2008 A023770 K OS E KR W S outh K orea 4380.00 19.6 11.9 1.3 10.5% - - NA

High 34,735.2 2,002.6 680.3 63.0% 47.2x 36.4x 6,421

Low 0.0 0.0 -84.0 -98.9% - - 1

Average 808.7 163.0 39.4 6.3% 5.1x 11.1x 945Median 40.5 55.7 1.7 11.6% 1.6x 7.8x 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 )

November picks up: Total transaction value in the Web 2.0 universe for November is $131.9 mill ion. November has shown improvement with number of f inancings up to 14 averaging $9.4 mil lion each (vs. an average of $7.4 mill ion last week). In comparison, total capital raised in October was $171.3 mill ion, averaging $6.3 mil lion (27 deals); September was $232.8 mil lion, averaging $9.0 mil lion (26 deals); and August was $221.6 mill ion, averaging $7.6 mil lion (29 deals).

Financing Activity Last Twelve Months

6.76.5

7.1

6.66.2

14.6

4.9

5.6

7.6

9.0

6.3

9.4

11.1

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

(US

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0.0

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4.0

6.0

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10.0

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

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

eal round-up for November start: The large deal highlights for the month include:

• Playfish – the UK-based social gaming company – was acquired by Electronic Arts in a deal potential ly valued up to $400 mil lion.

• Playfire – the social gaming company – raised $43 mil lion in its first round of venture financing.

• Sezmi – maker of set top box tech – raised $25 million in a third round of VC funding.

• Motley Fool – the financial information site – raised $25 mill ion in an unattributed financing.

• Phoenix New Media – the subsidiary of Phoenix Television, a popular Chinese news portal and media site – raised $25 mill ion from Intel Capital and Bertelsmann Asia Investment Fund.

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 (9). Collaboration-related companies have been hot recently, garnering the second highest number of deals (7). Advertising continues to be among the highest activity sectors in the past quarter (7 deals) (Figure 4). The $2.0 bill ion acquisit ion of Skype skews the dollars transacted to the SMS/Voice segment, while the $400 mill ion acquisition of Playfish brings the Virtual Worlds segment to the second highest total. Finally, the $170 mill ion acquisition of Mint brings the Vertical Communities segment into third place.

Capital Market Activity by Sector - Last Three Months

2,025.0 417.1 178.3 100.9 93.3 87.0 57.0 51.4 45.5 44.9 37.5 30.0 25.6 18.6 17.2 16.2 13.0 10.0 9.9 6.4 6.0 4.0 3.6 2.2 1.5 1.30.0

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)

# companies

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

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

Figure 5. Web 2.0 Price Performance Source. Capital IQ

Market pull-back: Sixteen companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), while 30 companies showed negative 1-week returns.

1 Week Price Performance

-17.7%-15.6%

-13.2%-9.8%

-8.4%-7.6%-7.1%-7.0%

-6.2%-6.0%-5.5%-5.4%

-4.3%-4.2%-3.8%-3.8%-3.7%-3.6%-3.6%-3.3%-2.6%-2.5%-2.3%-2.0%-1.9%-1.6%-1.3%-1.2%-1.1%-1.0%

0.0%0.0%

0.8%1.2%1.2%1.4%1.6%2.0%

3.0%3.2%3.7%4.1%

5.9%6.5%6.7%

9.0%14.1%

15.8%

-0.2 -0.15 -0.1 -0.05 0 0.05 0.1 0.15 0.2

Gree, Inc .AQ Interactive, Inc .

Mix i, Inc .Ngi Group Inc .

Y D Online Corp.Perfect World Co. , Ltd.

Quepas a Corp.Gravity Co. , LtdTree.Com, Inc .The9 L imited

Northgate Technologies L imitedGameOn Co Ltd.LookSmart, Ltd.

Webz en Inc .K ings of t Co. Ltd.HanbitS of t, Inc .

Giant Interac tive Group, Inc .DADA S pA

Cyberplex Inc .Frogs ter Interactive Pictures

S park Netw orks , Inc .S handa InteractiveMyriad Group AGOpen Tex t Corp.

NetDragon WebS of t, Inc .S ohu.com Inc .

United Online Inc .Neteas e.com Inc .

PNI Digita l Media Inc .V alueClick Inc .Eolith Co. Ltd.

Fluid Mus ic Canada, Inc .CDC Corp.

TheS treet.com, Inc .XING AG

S hutterf ly , Inc .IAC/InterA ctiveCorp.

S K Communications Co. , Ltd.Chines e Gamer International

Gamania Digita l EntertainmentModern Times Group Mtg A B

Changyou.com LimitedNEOWIZ Games Corporation

A ctoz S of t Co. , Ltd.Tencent Holdings Ltd.

Y nk Korea Inc .G igaMedia Ltd.

Openw ave S ys tems 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

DigitalFX International, Inc .

(OTCBB :DGFX) Digita lF X International F iles F orm 15

DigitalF X Internationa l, Inc. has announced that it has filed a F orm 15 with the S ecurities and E xchange Commis s ion to

voluntarily deregis ter its common s tock under the S ecurities E xchange Act of 1934, as amended. T he par va lue of the

common s tock is $0.001 per share.

Hunan TV & B roadcas t Intermediary

Co., L td. (SZS E :000917); Shanda

Interactive Entertainment L td.

(NasdaqGS :SNDA)

S handa Interactive E ntertainment, Hunan T V to Launch J oint V enture

S handa Interactive E nterta inment L td. and Hunan T V & B roadcas t Intermediary Co. L td. have partnered to launch a joint

venture. S handa will inves t $100 million in the new J V , for which Long will be appointed chief operating officer (C E O). No

officia l launch date has been dis closed.

Quepasa Corp. (OTCBB :QPSA)

Quepas a Corp. Appoints T ony P atti as Director of Deliverabilty

Quepasa Corp. announced the formation of a cros s -functiona l team dedicated to e-mail management and deliverability. As

part of this initiative, the company hired T ony P atti as Director of Deliverabilty. T ony is a recognized leader in the field of e-

mail deliverability. W ith a record of s ucces s spanning over a decade, T ony has developed focused, cus tomized deliverability

s olutions for s uch brands as T ravelocity.com and T rue.com, helping them achieve unprecedented delivery-to-inbox rates . As

an expert in e-mail marketing, IS P relations , and the la tes t in indus try trends and s tandards , T ony's deliverability s tewardship

ensures that Quepas a's vita l marketing inves tment pays -ins tead of being los t in spam filters .

Open Text Corp. (NasdaqGS :OTE X)

Open T ext Corp. Develops E nterpris e F ax F unctiona lity S eamles s ly Integrated with Microsoft E xchange S erver 2010

Open T ext Corp. announced that it has developed enterpris e fax functiona lity s eamles s ly integrated with Microsoft E xchange

S erver 2010. T his ensures that enterpris es can migrate to E xchange S erver 2010, preserve their inves tments in network-

based fax capability and unified mes saging s ys tems and provides the ability to acces s faxing from mobile devices . Open

T ext is a Microsoft G old C ertified P artner and 2009 IS V L ine of B us ines s P artner of the Y ear fina lis t. F axing continues to be

a critica l requirement for many bus ines ses that need s ignatures , drawings , and other paper-bas ed content. In indus tries and

bus ines ses such as banking, hea lthcare, mortgage companies , and patent offices , faxes a re recognized as important lega l

documents and vita l to bus ines s operation. W ith Open T ext F ax S erver, R ightF ax E dition and E xchange S erver 2010, faxing

becomes an integra l part of the overall enterpris e infras tructure, providing a s trong return on inves tment and reducing or

eliminating the need for phys ical fax machines .

Microsoft E xchange S erver 2010 is now ava ilable for bus ines ses worldwide and will help organizations reduce cos ts ,

protect communications and improve user productivity. Open T ext F ax S erver is well-proven in the marketplace and

it gives cus tomers a fax solution that s eamles s ly connects with E xchange S erver 2010 Unified Mes s aging. W orking

closely with Microsoft, the company developed the E xchange Connector for E xchange S erver 2010, which routes

faxes into and out of the E xchange S erver 2010 s ys tem us ing Open T ext F ax S erver, R ightF ax E dition, a s olution

offered as part of the Open T ext E CM S uite. When a fax comes into an enterpris e, E xchange S erver 2010 Unified

Mes s aging forwards it to the Open T ext F ax S erver, which proces s es the document so it can be transmitted to and

viewed within Microsoft O ffice Outlook as a native fax mes s age. It then routes the fax through E xchange S erver to

the recipient's Outlook inbox. T he origina l fax appears as an e-mail a ttachment that a user can s elect and view. Users

can a lso s end e-mail mes s ages and attachments to the F ax S erver from their Outlook inbox for faxing to recipients

outs ide the enterpris e. A s ignificant advantage of Open T ext F ax S erver, is that faxes are digita lly protected, helping to

prevent los s or authorized viewing of documents . Logging and auditing features provide the ability to review and track

a ll faxes from sender to recipient.

VOIS , Inc . (OTCBB :VOIS )

VOIS Inc. P lans to Introduce Apple iP hone App During the F irs t Quarter of 2010

V OIS Inc. announced plans to introduce its Apple iP hone application during the firs t quarter of 2010. T he new app is to be

des igned to enable members of V OIS to eas ily pos t projects , bid on projects , and socia lize the s ame way they currently do

on the VOIS web platform, but cus tomized to iP hone specifications . In advance of the iP hone app VO IS is offering a VOIS

webclip. T his will open up 3 buttons . Figure 7a. Key Developments Source. Capital IQ


IAC/InterActiveCorp. (NasdaqGS : IAC I)

IAC /InterActivecorp. Announces E xecutive Changes

IAC /InterActiveCorp. announced that J oey Levin, currently IAC 's S enior V ice P res ident, Mergers & Acquis itions and

F inance, has been named Chief E xecutive Officer of Mindspark Interactive Network. S hana F isher, currently S V P , Mergers

& Acquis itions and S trategy of IAC will as sume J oey's M&A respons ibilities in addition to her own. C urrent V ice P res ident of

IAC F inancial P lanning & Analys is Mark S chneider will as sume J oey's finance respons ibilities , reporting to E V P and C FO

Tom McInerney.

Revyver, LLC ; SpectrumDNA, Inc .

(OTCBB :S PXA) S pectrumDNA, Inc. (OTCB B : S P XA) cancelled the acquis ition of R evyver.

S pectrumDNA, Inc. (OTCB B : S P XA) s igned a letter of intent to acquire R evyver on November 10, 2008. T he financia l terms

of the transaction were not dis closed. After the transaction R evyver will operate as subs idiary of S pectrumDNA, Inc.

S ocialwise, Inc . (OTCBB :SCLW)

Socialwise, Inc. Enters Amendment of the 12% Senior Note

On November 9, 2009, S ocia lwis e, Inc. has entered into an amendment of the 12% S enior Note between the company and

Gemini Mas ter F und, L td. dated March 31, 2009. T he amendment changed the prior requirement under the Note for

mandatory early repayment to the following: T he company will make a cash payment of $250,000 to the Holder on or before

November 20, 2009 (in addition to the $25,000 pa id by the company on or about November 3, 2009) and an additional cash

payment to the Holder of $100,000 on or before December 15, 2009. If the company succes s fully makes both of the

previous two payments , then the company, in its s ole dis cretion, may extend the maturity date until F ebruary 28, 2010 in

cons ideration for 75,000 shares of common s tock, provided that there is no breach or default or event of default under this

Note.

DigitalFX International, Inc .

(OTCBB :DGFX)DigitalFX International Deleted From OTCBB

DigitalF X Internationa l, Inc’s common s tock has been deleted from OTC B ulletin B oard effective November 11, 2009 on

account of its filing form 15. T he company has been added other NB B .

Cyberplex Inc . (TSX:CX) Cyberplex Inc. Announces Unaudited Consolidated Financial Results for the Third Quarter and

Nine Months Ended September 30, 2009

Cyberplex Inc. announced unaudited consolidated financia l results for the third quarter and nine months ended S eptember

30, 2009. F or the quarter, the company reported revenue of $28.2 million was an increase of 156% over the $11.0 million

generated during the s ame period a year ago. T his growth resulted from the performance of the Web Advertis ing divis ion

and by focus ing on key bus ines s vertica ls and through internationa l market expans ion. C omprehens ive income was

$919,996 or $0.01 per bas ic and diluted share compared to comprehens ive income of $633,167 or $0.01 per bas ic and

diluted share a year ago. Income before amortization of capita l as s ets and intangible as s ets was $1,067,274 compared to

$752,513 a year ago. Income from operations was $954,984 compared to $645,003 a year ago. Net income was $712,371

compared to $633,167 a year ago.

Cyberplex Inc . (TSX:CX) Cyberplex Inc. Reports Unaudited Consolidated Financial Results for the Third Quarter and

Nine Months Ended September 30, 2009

Cyberplex Inc. reported unaudited consolidated financia l results for the third quarter and nine months ended S eptember 30,

2009. F or the quarter, the company reported income before taxes of $1.0 million aga ins t $0.6 million for s ame period a year

ago. E arnings before amortization, interes t, taxes and foreign exchange was $2.7 million or 4 cents per share.

F or nine months , the company reported income before taxes of $6.2 million aga ins t $0.9 million for s ame period a year ago.

NeuLion Incorporated (TSX:NLN) NeuLion Incorporated Reports Unaudited Condensed Consolidated Earnings for the Third

Quarter and Nine Months Ended September 30, 2009

NeuL ion Incorporated reported unaudited condensed cons olidated earnings for the third quarter and nine months ended

S eptember 30, 2009. F or the quarter, the company reported operating los s of $5,408,414, net los s and comprehens ive los s

of $7,463,951 or $0.07 per bas ic and diluted share on revenue of $6,061,302 agains t operating los s of $1,352,218, net los s

and comprehens ive los s of $1,377,667 or $0.03 per bas ic and diluted share on revenue of $2,699,041 for the s ame period a

year ago. C ash provided by operating activities was $1,937,748 agains t $49,431 for the s ame period a year ago. P roperty,

plant and equipment expenditures were $362,108 aga ins t $182,918 for the s ame period a year ago.

F or the nine months , the company reported operating los s of $15,513,615, net los s and comprehens ive los s of $18,185,960

or $0.16 per bas ic and diluted share on revenue of $19,097,767 aga ins t operating los s of $3,411,255, net los s and

comprehens ive los s of $4,413,792 or $0.10 per bas ic and diluted share on revenue of $7,635,789 for the s ame period a year

ago. C ash provided used in operating activities was $7,186,903 aga ins t $148,559 for the s ame period a year ago. P roperty, p

Tencent Holdings L td. (S EHK :700)

Tencent Holdings Ltd., Board Meeting, Nov 11, 2009T encent Holdings L td. , B oard Meeting, Nov 11, 2009 Agenda : T o approve the unaudited third quarter results and

announcement of the company and its s ubs idiaries for the three and nine months ending 30 S eptember 2009 and

cons idering the payment of a dividend, if any.

is eemedia Inc . (TS XV: IE E )

iseemedia Inc. Provides SMS-Based Push-Mail Service to Tata Indicom and Tata Docomo

is eemedia Inc. announced that it has begun deployment of an S MS -based push-mail s ervice with T ata Indicom and T ata

Docomo, the C DMA and GS M offering respectively of T ata T eleservices L td. T he commercia l launch is expected to be

completed by November 2009. T he consumer email will join enterpris e email as a s tandard s ervice on mobile devices in the

coming years . T T S L is pos itioning this s ervice to capture a s izeable s hare of the rapidly growing user s egment us ing On-T he-

Go email s ervices , us ing the is eemedia s olution.

Tencent Holdings L td. (S EHK :700) Tencent Holdings Ltd. Reports Unaudited Consolidated Earnings Results for the Third Quarter

Ended September 30, 2009

T encent Holdings L td. reported unaudited consolidated earnings results for the third quarter ended S eptember 30, 2009. F or

the quarter, the company reported tota l revenues were R MB 3,368.9 million (US D 493.3 million), an increase of 17.0% over

the s econd quarter of 2009 or an increas e of 66.4% to R MB 2,024.5 million for the third quarter of 2008. Operating profit was

R MB 1,680.3 million (US D 246.1 million), an increas e of 20.1% quarter on quarter or an increas e of 107.3% year on year

compared to R MB 810.5 million for the s ame quarter a year ago. P rofit a ttributable to equity holders of the company was

R MB 1,419.9 million (US D 207.9 million), an increas e of 19.1% quarter on quarter or an increas e of 92.6% year on year or

R MB 0.767 per diluted s hare compared to profit a ttributable to equity holders of the company of R MB 737.1 million or R MB

0.400 per diluted s hare for the s ame quarter a year ago. P rofit before income tax was R MB 1,683 million compared to R MB

802.4 million for the s ame quarter a year ago. C apita l expenditure was R MB 269.1 million for the third quarter of 2009 as

compared with R MB 191.3 million for the previous quarter.

Openwave S ys tems Inc .

(NasdaqGS :OPWV)

Openwave Introduces Mobile Internet Readyset Solution for Operators in Emerging Markets

Openwave S ys tems Inc. announced the Openwave(R ) Mobile Internet R eadyS et, a low-cos t, prepackaged platform that

provides operators with a centra l point from which to offer new, revenue generating, mobile internet s ervices . Openwave will

demons trate its R eadyS et solution, as well as its la tes t mobile internet, mes s aging and location software applications and

infras tructure at AfricaCom Congres s & E xhibition located in C ape T own, S outh Africa on November 11-12, 2009.

Openwave's R eadyS et provides a complete mobile internet solution cons is ting of tra ffic management tools including content

adaptation and acceleration, bandwidth optimis ation, and s ervice promotion and billing, in a s ingle package. W ith very low-

cos t hardware and s tandard pre-configured deployment options , R eadyS et is idea l for smaller operators and newer markets

which require a quick return on inves tment for minimal capita l outlay. Additiona lly, R eadyS et is s ca lable and will expand to

meet s ubscriber growth and demands both in terms of increased numbers and increased us er expectation.

Tencent Holdings L td. (S EHK :700) Tencent Holdings Ltd., Q3 2009 Earnings Call, Nov-11-2009 T encent Holdings L td. , Q3 2009 E arnings C a ll, Nov-11-2009

S hutterfly, Inc . (NasdaqGS :S FLY) Shutterfly, Inc. - Conference Presentation Call S hutterfly, Inc. - C onference P resentation C a lls

Tencent Holdings L td. (S EHK :700) Tencent Holdings Ltd. Reports Unaudited Consolidated Earnings Results for the Nine Months

Ended September 30, 2009

T encent Holdings L td. reported unaudited consolidated earnings results for the nine months ended S eptember 30, 2009. F or

the nine months , the company reported profit of R MB 3,688.56 million and profit attributable to equity holders of the

company was R MB 3,647.70 million or R MB 1.980 per s hare on revenues of R MB 8,751.69 million compared to profit of

R MB 1,939.50 million and profit attributable to equity holders of the company was R MB 1,915.480 million or R MB 1.040 per

share on revenues of R MB 5,057,163 million for the s ame period a year ago. P rofit before income tax was R MB 4,254.91

million compared to R MB 2,168.06 million for the s ame period a year ago. Operating profit was R MB 4,243.83 million

compared to R MB 2,313.12 million for the s ame period a year ago. Net cash flows generated from operating activities was

R MB 5,741.80 million compared to R MB 2,087.18 million for the s ame period a year ago.

Cyberplex Inc . (TSX:CX) Cyberplex Inc., Q3 2009 Earnings Call, Nov-12-2009 Cyberplex Inc. , Q3 2009 E arnings C a ll, Nov-12-2009

Golden E agle B roadcas ting; Shanda

Interactive Entertainment L td.

(NasdaqGS :SNDA) Shanda Interactive Entertainment Ltd. and Golden Eagle Broadcasting to Set Up Joint Venture

S handa Interactive E nterta inment L td. and G olden E agle B roadcas ting (GB S ) announced s trategic cooperation in S hanghai

on November 12, 2009. Under the agreement, S handa and GB S will s et up a joint venture with an inves tment of CNY 600

million. T he venture will be engaged in film and T V player making, dis tribution, and other related s ervices . T he cooperation

with G B S enables S handa to make inroads into the film s ector, apart from bus ines ses like online games , literature, as well

as mus ic.

DigitalPos t Interactive, Inc .

(OTCBB :DGLP); The P icture People,

Inc .DigitalPost Interactive Signs Agreement with the Picture People, Inc

DigitalP os t Interactive Inc. announced the s igning of a contract with T he P icture P eople Inc. T his partnership will expand

DigitalP os t's dis tribution channel a long with providing potential revenue growth. P icture P eople plans to enhance its online

presence by adapting and re-branding Digita lP os t's family webs ite platform for their cus tomer base. T his new platform

provides a s tunning visual display and eas y-to-use adminis tration features that will enable T he P icture P eople to enter new

markets with Digita lP os t's award winning photo/video-sharing technology.

Figure 7b. Key Developments – continued Source. Capital IQ


MOKO.mobi L imited (AS X:MKB )

MOKO.mobi Limited Secures Contract with Verizon Wireless

MOKO.mobi L imited has s ecured a contract with V erizon W ireles s . MOK O.mobi on V erizon will be supported with an

integrated billing model that will include monthly s ubscription and premium MMS (picture and video content upload from the

mobile device). T echnica l and product integration is s cheduled to begin immediately and a launch is expected in the firs t

quarter 2010.

Betawave Corporation (OTCBB :BWAV) Betawave Corporation and Silicon Valley Bank Enter Waiver and Third Amendment to Loan

and Security Agreement

On November 9, 2009, B etawave Corporation and S ilicon V a lley B ank entered into a waiver and third amendment to loan

and s ecurity agreement. Under the terms of the waiver and amendment, S V B agreed: to waive an event of default exis ting

as a result of the company's violation of a minimum tangible net worth covenant under the exis ting loan and s ecurity

agreement, dated as of March 28, 2009, between the company and S V B and that s uch minimum tangible net worth

covenant would not apply from October 1, 2009 to November 23, 2009. In addition, the waiver and amendment amended the

loan agreement to, among other things : add a covenant to the loan agreement that requires the company to maintain at

leas t $1.5 million in unres tricted cash on depos it in the company's unres tricted operating, sweep and other accounts with

S V B and its affilia tes and reduce the borrowing base ava ilable under the loan agreement from $4 million to the les s er of the

s um of 80% of eligible accounts and, a t S V B 's dis cretion, 60% of extended eligible accounts and $1.5 million. In connection

with the waiver and amendment, the company and S V B a ls o entered into an acknowledgement and reaffirmation of loan and s ecurity agreement under which the company, as a

corporation that reincorporated into Delaware as of S eptember 21, 2009, acknowledged and reaffirmed its obligations

under the loan agreement.

IB3 Networks , Inc . (OTCBB : IBNW)

IB3 Networks, Inc., Annual General Meeting, Nov 13, 2009

IB 3 Networks , Inc. , Annual G enera l Meeting, Nov 13, 2009, a t 09:00 US E as tern T ime. Location: offices of C arlile P atchen &

Murphy LLP , 366 E as t B road S treet, C olumbus , OH 43215, United S tates . Agenda : T o elect a board of two directors to

s erve until the next Annual Meeting of S tockholders or until their s ucces sors have been duly elected and qua lified; and; to

cons ider - S uch other procedura l matters as may properly come before the Annual Meeting or any adjournment or

pos tponement thereof.

Accelerize New Media, Inc .

(OTCBB :ACLZ)Accelerize New Media, Inc. Announces Earnings Results for the Third Quarter and Nine

Months Ended September 30, 2009

Accelerize New Media , Inc. announced earnings results for the third quarter and nine months ended S eptember 30, 2009.

F or the quarter, the company's revenues decreas ed by $295,394, or 27.4% to $783,946 compared to $1,079,340 for the

comparable period in 2008. T he company's net los s decreased $2,131,902 or 87.4% to $306,091, or $0.01 per s hare,

compared to $2,437,993, or $0.09 per s hare for the three month period ended S eptember 30, 2008. T he company's net

cash used in operating activities amounted to $161,734, a decrease of $327,445 or 66.9% from $489,209 for the

comparable period in 2008.

Fluid Mus ic Canada, Inc . (TSX:FMN) Fluid Music Canada, Inc. Reports Unaudited Consolidated Earnings Results for the Third

Quarter and Nine Months Ended September 30, 2009

F luid Mus ic C anada , 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 and comprehens ive income of $184,276 on tota l

revenue of $1,507,545 compared to net los s and comprehens ive los s of $2,908,798 or $0.06 per bas ic and diluted share on

total revenue of $1,269,945 a year ago. T he company reported income from operations of $130,963, income before

provis ion for income taxes of $184,276 compared to los s from operations of $2,909,062, los s before provis ion for income

taxes of $2,908,798 a year ago. Net cash provided by operating activities was $318,772, and purchase of fixed as s ets was

$365,287 agains t net cash used in operating activities of $2,527,049, and purchase of fixed as s ets of $94,126 a year ago.

Perfect World Co., L td.

(NasdaqGS :PWRD)

Perfect World Co., Ltd., Annual General Meeting, Nov 14, 2009

P erfect World C o. , L td. , Annual G enera l Meeting, Nov 14, 2009, a t 15:00 CC T - C hina Coas t, US S R Zone 7. Location: Unit

1701, 17/F , Overs eas T rus t B ank, 160 G louces ter R oad, W an Cha i, Hong K ong. Agenda : T o amend S ection 3.1 (a ) of the

amended and res tated S hare Incentive P lan of the company; to amend S ection 5. 2 (a) ( ii) and (iii) of the amended and

res tated S hare Incentive P lan of the company; to ra tify the appointment of Mr. Han Zhang and Mr. Daniel Dong Y ang as an

independent director of the company;to ra tify the appointment of the Independent Auditor P ricewaterhouseCoopers for the

fis cal year 2008;to ra tify the appointment of the Independent Auditor P ricewaterhouseCoopers for the fis ca l year 2009; to

amend Article 1 of the amended and res tated Memorandum and Articles of As sociation of the company;to amend Article

111 of the amended and res tated Memorandum and Articles of As sociation of the company; to include financia l s tatements

of fis ca l year 2008 in the company's 2008 annual report; and to authorize each of the directors to take any and every action

that might be neces s ary to effect the foregoing res olutions 1to 9 as s uch director, in his absolute dis cretion, thinks fit.


(NasdaqGS :PWRD)Perfect World Co., Ltd. Ratifies Appointment of Directors; Approves Amendment of Article of

Association

P erfect World C o. , L td. announced that a t its annual general meeting held on November 14, 2009, the company approved

ratification of the appointment of Mr. Han Zhang and Daniel Dong Y ang as independent directors of the company.


(NasdaqGS :PWRD)Perfect World Co., Ltd. Reports Consolidated Unaudited Earnings Results for the Third

Quarter Ended September 30, 2009 ; Provides Earnings Guidance for the Fourth Quarter of

2009

P erfect World C o. , L td. reported cons olidated unaudited earnings results for the third quarter ended S eptember 30, 2009.

F or the quarter, tota l revenues were R MB 589,994,239 aga ins t R MB 381,802,248 a year ago. Operating profit was R MB

297,665,297 aga ins t R MB 200,004,263 a year ago. P rofit before tax was R MB 300,066,077 aga ins t R MB 207,573,759 a

year ago. Net income was R MB 289,013,119 aga ins t R MB 198,803,747 a year ago. Net income attributable to the

company's s hareholders was R MB 288,321,111 or R MB 1.10 per bas ic and diluted share aga ins t R MB 198,803,747 or R MB

0.67 per bas ic and diluted share a year ago. Net earnings per ADS diluted were R MB 5.50 aga ins t R MB 3.34 a year ago.

Net cash provided by operating activities was R MB 326,332,320 aga ins t R MB 265,481,664 a year ago. C apital expenditure

on purchase of property, equipment, and software was R MB 59,754,724 agains t R MB 62,749,284 a year ago. Non-GAAP

operating profit was R MB 317,891,325 agains t R MB 213,364,826 a year ago. Non-GAAP net income attributable to the

company's s hareholders was R MB 308,547,139 agains t R MB 212,164,310 a year ago. Non-GAAP net earnings per ADS Diluted was R MB 5.88 aga ins t R MB 3.56 a year ago.

Figure 7c. Key Developments – continued Source. Capital IQ

VAL UAT IO N

Online Gaming companies lead market-cap charts: Fourteen 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 39 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$34.8 bill ion.

Market C ap (USD m)

0.00.00.00.00.20.60.60.81.01.01.81.92.23.04.65.15.25.55.75.95.97.38.28.38.58.611.313.314.016.617.719.219.620.421.222.624.324.632.832.933.234.635.138.540.540.653.554.763.267.773.975.977.178.979.681.182.086.8119.5168.2185.9200.7208.0216.5217.8222.0237.7252.5255.8269.2344.4404.6695.3734.0882.41033.91106.31186.51587.4

2156.02189.72227.92286.32630.23170.33304.25368.634735.2

1897.5

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

S ocia l Media V entures Inc .S NM Global Holdings

Dibz International, Inc .China Gatew ay Corporation

The Parent CompanyCLICKER Inc .

K AB Dis tr ibution Inc .Unis erve Communications Corp.

L iveWorld Inc .Betaw ave CorporationWynds torm Corporation

B igs tring Corp.S NAP Interactive, Inc .

Beyond Commerce, Inc .Digita lPos t Interactive, Inc .

B right Things plcWorlds .com Inc .

V OIS , Inc .CornerWorld Corporation

UOMO Media , IncB roadWebA s ia Inc .S pectrumDNA , Inc .

is eemedia Inc .MOKO.mobi L imited

IAS Energy , Inc .Magnitude Information S ys tems Inc .

Lingo Media CorporationEx tens ions , Inc .

Jumbuck Enterta inment L imitedQuepas a Corp.

Dolphin Digita l Media , Inc .LookSmart, L td.Y nk Korea Inc .

A cceleriz e New Media , Inc .Northgate Technologies L imited

S ocia lw is e, Inc .AQ Interactive, Inc .

Wiz z ard S of tw are CorporationDigita lTow n, Inc .

A s s oc iated Media Holdings Inc .Ngi Group Inc .Eolith Co. Ltd.Webz en Inc .

NeXplore CorporationDXN Holdings Bhd

Gravity Co. , L tdS park Netw orks , Inc .PNI Digita l Media Inc .

HanbitS of t, Inc .Frogs ter Interactive Pictures AG

GameOn Co Ltd.TheS treet.com, Inc .

NeuLion IncorporatedGeoS entric Oy jTree.Com, Inc .Cyberplex Inc .

Y D Online Corp.Fluid Mus ic Canada, Inc .

A ctoz S oft Co. , L td.DADA S pA

The9 L imitedMyriad Group AG

Openw ave S ys tems Inc .GungHo Online Enterta inment, Inc .

Gamania Digital Enterta inment Co. , L td.OAO RBC Information S ys tems

GigaMedia Ltd.XING AG

S K Communications Co. , L td.CDC Corp.

NetDragon WebS of t, Inc .S hutterf ly , Inc .

United Online Inc .NEOWIZ Games Corporation

V alueClick Inc .K ings oft Co. Ltd.

Mix i, Inc .Chines e Gamer InternationalGiant Interactive Group, Inc .

Changyou.com L imitedOpen Tex t Corp.S ohu.com Inc .

Gree, Inc .Perfect World Co. , L td.IA C/InterActiveCorp.

Modern Times Group Mtg A BS handa Interactive Enterta inment Ltd.

Neteas e.com Inc .Tencent Holdings Ltd.

Figure 8. Market Cap Rankin Source. Capital IQ

TEV/Revenue (LTM) averages 5.1x: The overall average TEV/Revenue (LTM) multiple for our group is 5.1x (vs. 5.4x last week) (Figure 9). We continue to see four companies trading above 25x revenue – Bigstring Corp. (OTCBB:BSGC) at 47.2x, Dolphin Digital Media, Inc. (OTCBB:DPDM) at 32..1x, NexPlore Corporation (OTCPK:NXPC) at 27.6x, and Tencent Holdings Ltd. (SEHK:700) at 25.0x. The median of 1.8x compares with 1.8x last week. Note that we exclude multiples greater than 50x. Twenty-one companies have multiples under 1.5x.

TEV/LTM R evenue (x)

0.0 0.0 0.0 0.2 0.2 0.2 0.2 0.3 0.3 0.3 0.5 0.5 0.7 0.7 0.7 0.7 0.8 0.8 0.8 0.8 0.9 0.9 1.0 1.0 1.1 1.3 1.3 1.3 1.3 1.5 1.6 1.6 1.9 2.2 2.4 2.4 2.5 2.7 3.1 3.1 3.3 3.4 3.54.5 4.7 4.8

5.7 6.2 6.6 6.9 7.0 7.4 8.08.7

10.110.6

14.515.4

16.2

25.0

27.6

32.1

47.2

Average, 5.1

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

China G

ateway Corporation

AQ Interactive, Inc.

OAO RBC Inform

ation Systems

SNAP Interactive, Inc.

TheStreet.com, Inc.

The Parent Company

Tree.Com, Inc.

CLICKER Inc.

Northgate Technologies Limited

Uniserve Communications

Jumbuck Entertainment Limited

Openwave Systems Inc.

DXN Holdings Bhd

Cyberplex Inc.

IAC/InterActiveCorp.

CDC Corp.

Perfect World Co., Ltd.

Beyond Commerce, Inc.

Actoz Soft Co., Ltd.

HanbitS

oft, Inc.

GigaMedia Ltd.

DADA SpA

United O

nline Inc.

Spark Networks, Inc.

SNM G

lobal H

oldings

Gamania Digital E

ntertainment

Shutterfly, Inc.

ValueClick Inc.

SK Communications Co., Ltd.

GungHo O

nline Entertainment,

Ynk Korea Inc.

YD O

nline Corp.

Modern Times G

roup M

tg AB

NetDragon W

ebSoft, Inc.

CornerW

orld Corporation

Eolith Co. Ltd.

PNI Digital M

edia Inc.

Open Text Corp.

NeuLion Incorporated

Myriad G

roup AG

Sohu.com Inc.

XING AG

NEOWIZ G

ames Corporation

Social M

edia Ventures Inc.

iseemedia Inc.

Wizzard Software Corporation

Accelerize New M

edia, Inc.

Changyou.com Limited

DigitalPost Interactive, Inc.

Frogster Interactive Pictures

Mixi, Inc.

Kingsoft Co. Ltd.

UOMO M

edia, Inc

Lingo M

edia Corporation

Gree, Inc.

MOKO.m

obi Limited

GeoSentric O

yj

Fluid M

usic Canada, Inc.

Chinese G

amer International

NeXplore Corporation

Tencent Holdings Ltd.

Dolphin Digital M

edia, 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 11.5x (vs. 12.4x last week). On a geographic basis, the United States has the most companies (38), trading at an average of 6.6x revenue (vs. 7.3x last week) (Figure 11). Ten of the companies are Canadian (average 7.9x revenue).

Average TEV/LTM Revenue - By Exchange

0.00.20.3

0.70.91.51.71.81.92.93.14.15.15.55.7

6.26.4

8.7

11.512.4

14.5

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

HLS

E

SE

HK

OT

CB

B

GT

SM

TS

X

OT

CP

K

TS

E

AS

X

XT

RA

TS

XV

SW

X

AM

EX

OM

NasdaqG

S

KO

SE

OS

E

CM

KLS

E

BS

E

NasdaqG

M

RT

S

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

(x)

# Companies

Average TEV/LTM Revenue - By Country

0.00.7 0.3

0.70.91.71.93.1

3.84.75.15.56.16.6

7.9

14.5

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

Fin

land

Chin

a

Unite

d

Sta

tes

Taiw

an

Austr

alia

Germ

any

Japan

Canada

Sw

itzerland

Sw

eden

South

Kore

a

Italy

Hong K

ong

Mala

ysia

India

Russia

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

(x)

# Companies

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

TEV/EBITDA (LTM) averages 11.6x: The average multiple for the 35 companies with positive EBITDA (and multiples under 100x) is 11.6x LTM EBITDA (vs. 11.8x last week), led by HanbitSoft, Inc. (KOSE:A047080) 36.4x multiple (Figure 12). Thirteen companies have EBITDA multiples under 7x. The median multiple is 11.6x (vs. 9.6x last week).

TEV/LTM EB ITDA (x)

0.4 0.6 1.1 1.43.4

4.4 5.0 5.5 5.5 5.8 6.3 6.8 6.9 7.3 7.5 7.7 7.8

10.1 10.5 10.5 10.811.8 12.0

13.0 13.114.9

16.6 16.7 17.4

20.4 21.122.8

27.9

35.136.4

A verage, 11.6

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

OAO RBC Inform

ation Systems





United O

nline Inc.


ValueClick Inc.

Tree.Com, Inc.

TheStreet.com, Inc.

Cyberplex Inc.

DADA SpA

GungHo O

nline Entertainment, Inc.

YD O

nline Corp.

Sohu.com Inc.

NetDragon W

ebSoft, Inc.

Gamania Digital E

ntertainment Co., Ltd.


CDC Corp.

Open Text Corp.

Shutterfly, Inc.

XING AG


NEOWIZ G

ames Corporation

Modern Times G

roup M

tg AB

Ynk Korea Inc.

Openwave Systems Inc.

Kingsoft Co. Ltd.

Gree, Inc.

SK Communications Co., Ltd.

Mixi, Inc.

PNI Digital M

edia Inc.

Chinese G

amer International

HanbitS

oft, Inc.

Uniserve Communications Corp.

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 0.6x. On a geographic basis, the United States has the most companies (38), trading at an average of 7.4x EBITDA (Figure 14). Ten of the companies are Canadian (average 19.0x EBITDA).

Average TEV/LTM EBITDA - By Exchange

0.40.61.15.05.7

6.36.86.98.911.812.213.1

15.917.9

19.2

29.6

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

TS

XV

TS

E

GT

SM

KO

SE

OM

SE

HK

XT

RA

NasdaqG

S

OS

E

CM

TS

X

NasdaqG

M

AM

EX

AS

X

OT

CB

B

RT

S

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

(x)

# Companies

Average TEV/LTM EBITDA - By Country

0.4

1.1

6.8

7.48.7

10.511.8

13.115.115.9

17.9

19.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

Canada

Taiw

an

South

Kore

a

Japan

Sw

eden

Germ

any

Hong

Kong

Chin

a

Unite

d

Sta

tes

Italy

Austr

alia

Russia

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

(x)

# Companies

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

P/E (LTM) averages 19.4x: The average multiple for the 33 companies with positive earnings (and multiples under 100x) is 19.4x LTM EPS (vs. 18.6x last week), led by Tencent Holdings Ltd. (SEHK:700) with a 70.9x multiple (Figure 15). Fourteen companies have P/E multiples under 10x. The median is 13.3x.

P/E LTM (x)

0.0 0.01.9 2.1 2.3 3.0 3.2 3.8 4.0

5.9 7.3 7.4 8.7 9.4 11.2 11.3 12.8 13.3 14.016.9 17.0 17.7

20.0 20.623.2

25.9

36.4 37.7 38.2

46.8 47.0

55.2

65.3

70.9

Average, 19.4

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 G

roup, Inc.

The9 Limited

Shanda Interactive Entertainment Ltd.

Netease.com Inc.




DXN Holdings Bhd

Cyberplex Inc.

GameOn Co Ltd.

YD O

nline Corp.

GigaMedia Ltd.


HanbitS

oft, Inc.


Sohu.com Inc.

NetDragon W

ebSoft, Inc.


Modern Times G

roup M

tg AB


Worlds.com Inc.

Kingsoft Co. Ltd.

Gamania Digital E

ntertainment Co., Ltd.

XING AG

Chinese G

amer International

Gree, Inc.

NEOWIZ G

ames Corporation

GungHo O

nline Entertainment, Inc.

Open Text Corp.

Mixi, Inc.

LiveWorld 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 11.9x. On a geographic basis, the United States has the most companies (38), trading at an average of 23.6x earnings (Figure 17). Ten of the companies are Canadian (average 27.2x EPS).

Average P/E - By Exchange

1.9 0.04.0

5.97.311.611.9

17.017.718.8

25.929.8

33.435.246.8

65.3

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

OT

CP

K

OS

E

SE

HK

TS

E

GT

SM

XT

RA

KO

SE

AM

EX

OM

OT

CB

B

Nasda

qG

S

TS

X

KLS

E

AS

X

NY

SE

Nasda

qG

M

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

(x)

# Companies

Average P/E - By Country

4.05.9

12.514.4

17.0

23.023.625.927.2

36.8

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

Japan

Canada

Germ

any

Unite

d

Sta

tes

Taiw

an

Sw

eden

Chin

a

South

Kore

a

Mala

ysia

Austr

alia

6 10 2 38 3 1 10 8 1 2

(x)

# 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

Netease.com Inc. (NasdaqGS:NTES) 18-Nov-09 8:00 p.m. EST Q3/09 877-941-1427

The9 Limited (NasdaqGS:NCTY) 23-Nov-09 8:00 p.m. EST Q3/09 800-884-5695

Giant Interactive Group, Inc. (NYSE:GA) 25-Nov-09 8:00 p.m. EST Q3/09 866-510-0712

NetDragon WebSoft, Inc. (SEHK:777) 25-Nov-09 7:00 a.m. EST Q3/09 800-130-0399

Figure 18. Earnings Calendar Source. Company reports

Comparable Company Analys is > Web 2.0

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 ACLZ OTCB B 20.4 0.73 4.3% 21.7% 28.1% 82.5% 82.5% -8. 8%

Actoz S oft C o. , Ltd. K R W A052790 KOS E 119.5 16, 450 6.5% 4.1% -22.2% -0.3% 85.2% -54.3%

AQ Interactive, Inc. J P Y 3838 T S E 24.3 40, 000 -15.6% -18.4% -21.3% -26.5% 20.1% -51.8%

As sociated Media Holdings Inc. US D AS MH OTCP K 32.9 0.76 8344.4% 5328.6% 5328.6% 50566.7% 25233.3% 0.0%

B igs tring Corp. US D B S GC OTCB B 1.9 0.03 -3. 0% -17.9% 62.4% 39.1% 39.1% -43.9%

B etawave C orpora tion US D BWAV OTCB B 1.0 0.04 11.1% -31.4% -42.6% -61.1% -83.3% -87.9%

B eyond Commerce, Inc. US D B YOC OTCB B 3.0 0.06 -14.3% -50.4% -66.7% -95.1% -94.3% -96.8%

B right T hings plc G B P AIM:B G T AIM 5.1 0.01 0.0% -14.5% -14.5% -24.7% -1.3% -52.4%

B roadWebAs ia Inc. US D BWBA OTCP K 5.9 0.07 133.3% 133.3% -69.6% -76.5% -41.7% -97.6%

CDC C orp. US D CHIN.A NasdaqG S 269.2 2.54 0.8% 3.3% -3. 8% 81.4% 262.9% -35.2%

C hangyou.com Limited US D C YOU NasdaqG S 1,897. 5 34.50 4.1% 15.8% -6. 9% 17.3% NM -28.7%

C hina Gateway C orporation US D CGW Y OTCP K 0.0 0.00 -86.7% -86.7% -86.7% 0.0% -80.0% -93.3%

C hinese Gamer International TW D G TS M:3083 G T S M 1,186.5 457.50 3.0% -3.7% 16.3% 48.1% 511.6% -11.8%

C LIC K E R Inc. US D C LK Z OTCB B 0.6 0.01 7.7% -12.5% 27.3% 133.3% -90.0% -97.0%

C ornerW orld Corpora tion US D CWR L OTCB B 5.7 0.06 0.0% 0.0% 0.0% -33.3% -70.0% -87.2%

C yberplex Inc. C AD T S X:CX T S X 81.1 1.35 -3. 6% 8.0% -17.7% -25.8% 285.7% -32.2%

DADA S pA E UR CM:DA CM 168.2 7.09 -3. 6% -6.8% 15.8% 16.3% 10.7% -13.5%

DXN Holdings B hd MY R DXN K LS E 40.5 0.62 -1. 6% -5.3% 22.8% 59.0% 69.9% -10.1%

Dibz Internationa l, Inc. US D DIB Z OTCP K 0.0 0.00 20.0% NM 20.0% -88.0% -97.6% -97.6%

Digita lP os t Interactive, Inc. US D DGLP OTCB B 4.6 0.06 31.1% 0.0% 7.3% 293.3% 47.5% -40.4%

Digita lT own, Inc. US D DGTW OTCB B 32.8 1.20 -20.0% -40.0% -7. 7% -40.0% -40.0% -65.7%

Dolphin Digital Media , Inc. US D DPDM OTCB B 17.7 0.33 -17.5% -8.3% -13.2% -50.7% -56.0% -63.3%

E olith Co. Ltd. K R W A041060 KOS E 34.6 570.00 0.0% -17.4% -30.5% -40.6% 14.0% -50.9%

E xtens ions , Inc. US D E XT I OTCP K 13.3 0.30 20.0% -14.3% 275.0% 100.0% 471.4% -70.3%

F luid Mus ic C anada, Inc. C AD T S X:FMN T S X 86.8 1.80 0.0% 30.4% 50.0% 89.5% 500.0% -16.3%

F rogs ter Interactive P ictures AG E UR F R G XTR A 67.7 18.05 -3. 3% 0.3% 25.2% 125.6% 336.0% -16.0%

G amania Digital E ntertainment C o. , Ltd. TW D 6180 G T S M 217.8 46.50 3.2% -7.7% -17.0% 7.6% 272.0% -32.4%

G ameOn Co Ltd. J P Y 3812 T S E 73.9 68, 300 -5. 4% -24.1% -35.3% -25.8% -52.2% -55.1%

G eoS entric Oyj E UR G E O1V HLS E 78.9 0.06 0.0% 20.0% 20.0% 20.0% 50.0% 0.0%

G iant Interactive G roup, Inc. US D GA NY S E 1,587. 4 7.01 -3. 7% -1.3% -9. 4% -13.3% 16.3% -26.7%

G igaMedia Ltd. US D G IGM NasdaqG S 237.7 4.36 14.1% -10.5% -6. 2% -28.6% 15.0% -43.6%

G ravity Co. , L td US D GR V Y NasdaqGM 40.6 1.46 -7. 0% -14.1% -31.5% 32.7% 108.6% -44.5%

G ree, Inc. J P Y T S E :3632 T S E 2,227. 9 4, 450 -17.7% -7.7% 11.7% 65.7% NM -22.1%

GungHo Online E nterta inment, Inc. J P Y 3765 OS E 216.5 169,000 -17.7% -23.2% -26.5% -2.8% 69.3% -39.6%

HanbitS oft, Inc. K R W A047080 KOS E 63.2 3, 445 -3. 8% -15.9% -14.2% -38.5% 18.4% -48.1%

IAC /InterActiveCorp. US D IAC I NasdaqG S 2,630. 2 19.93 1.6% 4.8% 7.4% 28.1% 33.5% -6. 3%

IAS E nergy, Inc. US D IAS A.E OTCB B 8.5 0.12 9.2% 20.1% -19.9% -54.7% 140.2% -57.1%

is eemedia Inc. C AD IE E T S XV 8.2 0.17 -10.5% 13.3% 240.0% 78.9% 183.3% -37.0%

Jumbuck E ntertainment L imited AUD AS X:JMB AS X 14.0 0.33 -2. 9% -13.2% -12.0% -21.4% -21.4% -34.0%

KAB Dis tribution Inc. C AD T S X:K AB T S X 0.6 0.01 -50.0% -99.2% -99.2% -98.6% -99.4% -99.4%

K ingsoft C o. Ltd. HKD 3888 S E HK 1,033. 9 7.33 -3. 8% -2.5% -10.2% 44.6% 266.5% -22.6%

L ingo Media C orpora tion C AD T S XV :LM T S XV 11.3 0.99 1.0% 0.0% -1. 0% -13.9% -16.1% -32.2%

L iveW orld Inc. US D LVWD OTCP K 1.0 0.03 0.0% -22.0% -46.7% -54.3% -54.3% -87.2%

LookS mart, Ltd. US D LOOK NasdaqGM 19.2 1.12 -4. 3% -10.4% -9. 0% -20.0% -5.5% -38.1%

Magnitude Information S ys tems Inc. US D MAGY OTCB B 8.6 0.02 111.1% 58.3% 192.3% 58.3% 58.3% -36.7%

Mixi, Inc. J P Y 2121 T S E 1,106. 3 642,000.00 -13.2% 0.0% 5.4% 46.6% 8.6% -18.8%

Modern T imes G roup Mtg AB S E K MTG B OM 3,170.3 335.00 3.7% 4.2% 14.3% 39.0% 157.7% -1. 5%

MOKO.mobi L imited AUD MK B AS X 8.3 0.09 4.7% 12.5% 28.6% 28.6% 125.0% -14.3%

Myriad G roup AG CHF MYR N SW X 200.7 4.68 -2. 3% 2.4% 8.8% -21.2% -19.3% -34.2%

NE OW IZ Games Corporation K R W A095660 KOS E 734.0 41,550.00 5.9% 12.1% 33.2% 30.0% 556.9% -7. 5%

NetDragon W ebS oft, Inc. HKD 777 S E HK 344.4 5.05 -1. 9% 2.0% -16.8% -8.2% 107.8% -29.4%

Netease.com Inc. US D NT E S NasdaqG S 5,368. 6 41.48 -1. 2% 7.8% 0.2% 43.0% 160.9% -14.5%

NeuL ion Incorporated C AD T S X:NLN T S X 77.1 0.72 5.9% -16.3% -37.9% -7.7% 132.3% -44.6%

NeXplore Corporation US D NXPC OTCP K 38.5 0.69 -8. 0% 15.0% -1. 4% -1.4% -44.8% -52.4%

Ngi G roup Inc. J P Y 2497 T S E 33.2 24,000.00 -9. 8% -11.1% -24.5% -20.4% -59.1% -68.0%

Northgate T echnologies L imited INR 590057 B S E 21.2 29.15 -5. 5% -19.7% -16.4% -32.9% -44.8% -60.9%

Open T ext C orp. US D OTE X NasdaqG S 2,156. 0 38.24 -2. 0% -5.0% -1. 7% 21.6% 47.5% -7. 7%

Openwave S ys tems Inc. US D OPW V NasdaqG S 208.0 2.49 15.8% -3.1% -16.2% 39.9% 398.0% -20.4%

P erfect W orld C o. , L td. US D PWR D NasdaqG S 2,286. 3 45.37 -7. 6% 7.5% 14.7% 127.3% 188.4% -10.1%

PNI Digital Media Inc. C AD T S XV :P N T S XV 54.7 1.74 -1. 1% 1.8% 4.8% -3.3% 50.0% -19.1%

Quepasa Corp. US D QP S A OTCB B 16.6 1.30 -7. 1% -5.8% -7. 1% 26.2% -39.3% -44.7%

OAO R B C Information S ys tems US D R BC I R T S 222.0 1.60 0.0% 6.7% 52.4% 62.4% 6.7% -5. 9%

S handa Interactive E ntertainment Ltd. US D S NDA NasdaqG S 3,304. 2 49.13 -2. 5% 3.1% 3.8% -9.5% 115.9% -24.4%

S hutterfly, Inc. US D S FLY NasdaqG S 404.6 15.76 1.4% -1.5% 7.0% 11.5% 146.3% -13.1%

S K Communica tions C o. , L td. K R W A066270 KOS E 255.8 7,290.00 2.0% -12.9% -25.5% -29.2% 68.0% -43.3%

S NAP Interactive, Inc. US D S T V I OTCB B 2.2 0.20 -50.0% -42.9% -50.0% -62.3% -73.2% -81.5%

S NM G loba l Holdings US D S NMN OTCP K 0.0 0.00 -33.3% -47.4% -50.0% -69.7% -99.3% -99.5%

S ocia l Media V entures Inc. US D S MV I OTCP K 0.0 0.01 -20.8% -76.4% -94.8% -1.0% -99.3% -99.8%

S ocia lwis e, Inc. US D S CLW OTCB B 22.6 0.51 -7. 3% -16.4% -22.7% -36.3% -71.7% -72.7%

S ohu.com Inc. US D S OHU NasdaqG S 2,189. 7 56.94 -1. 6% -12.0% -7. 1% 4.3% 51.8% -21.2%

S park Networks , Inc. US D LOV AME X 53.5 2.60 -2. 6% 5.7% 20.1% 15.6% -14.5% -17.5%

S pectrumDNA, Inc. US D S P XA OTCB B 7.3 0.15 0.0% 7.1% -34.8% -65.9% -37.5% -66.7%

T encent Holdings Ltd. HKD 700 S E HK 34,735.2 148 6.7% 8.0% 29.2% 86.5% 270.5% -3. 1%

The P arent C ompany US D K IDS .Q OTCP K 0.2 0.01 0.0% 0.0% -53.3% -44.0% -99.2% -99.3%

The9 L imited US D NCTY NasdaqG S 185.9 7.41 -6. 0% -6.6% -12.0% -20.0% -32.1% -55.5%

TheS treet.com, Inc. US D T S CM NasdaqGM 75.9 2.48 1.2% -17.1% 6.4% 27.2% -18.7% -33.7%

T ree.Com, Inc. US D T R E E NasdaqGM 79.6 7.30 -6. 2% -5.6% -21.7% -42.9% 225.9% -44.1%

Uniserve Communica tions Corp. C AD T S XV :US S T S XV 0.8 0.04 -30.0% -12.5% -22.2% -12.5% -80.6% -65.0%

United Online Inc. US D UNTD NasdaqG S 695.3 8.22 -1. 3% -6.9% 11.8% 19.1% 47.6% -13.1%

UOMO Media , Inc US D UOMO OTCB B 5.9 0.07 -15.0% -40.9% -62.2% -91.4% -56.1% -93.6%

V a lueC lick Inc. US D V CLK NasdaqG S 882.4 10.30 -1. 0% -23.7% -0. 8% -1.1% 87.6% -26.1%

VOIS , Inc. US D V OIS OTCB B 5.5 0.01 -12.0% 32.0% 20.0% -26.7% -12.0% -71.3%

W ebzen Inc. US D W ZE N NasdaqGM 35.1 2.96 -4. 2% 12.6% 13.0% -33.0% 294.7% -36.7%

W izzard S oftware Corpora tion US D W ZE AME X 24.6 0.49 3.7% 10.8% -0. 5% -15.9% -26.1% -71.8%

W orlds .com Inc. US D WDDD OTCB B 5.2 0.10 0.0% 0.0% 11.1% -33.3% -28.6% -56.5%

W ynds torm Corporation US D W YND OTCP K 1.8 0.10 0.0% 0.0% 0.0% 11.1% -50.0% -80.4%

XING AG E UR O1B C XT R A 252.5 32.70 1.2% -11.6% 20.0% 2.2% 26.8% -13.9%

YD Online C orp. K R W A052770 KOS E 82.0 6,520.00 -8. 4% -20.1% -25.5% -40.7% 20.7% -47.4%

Y nk K orea Inc. K R W A023770 KOS E 19.6 4,380.00 9.0% 13.5% -2. 7% -41.7% -26.9% -49.7%

High 8344.4% 5328.6% 5328.6% 50566.7% 25233.3% 0.0%

Low -86.7% -99.2% -99.2% -98.6% -99.4% -99.8%

Average 808.7 92.5% 54.9% 59.6% 572.2% 351.3% -44.3%Median -1. 3% -4.3% -3. 8% -2.8% 18.4% -40.4%

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)

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 20.4 5.7x - - - - - -

Actoz S oft C o. , Ltd. G aming S outh K orea KOS E A052790 119.5 0.8x - 3. 4x - 16.9x - 1.9x

AQ Interactive, Inc. G aming J apan T S E 3838 24.3 0.0x - - - - - 0.4x

As socia ted Media Holdings Inc. Mobile United S ta tes OTCP K AS MH 32.9 - - - - - - -

B igs tring Corp. Ins tant Messaging United S ta tes OTCB B B S GC 1.9 47.2x - - - - - -

B etawave Corpora tion Media United S ta tes OTCB B BWAV 1.0 - - - - - - 0.2x

B eyond Commerce, Inc. S ocial Networking United S ta tes OTCB B B YOC 3.0 0.8x - - - - - -

B right T hings plc S ocial Networking United K ingdom AIM AIM:B GT 5.1 - - - - - - -

B roadWebAs ia Inc. S ocial Networking United S ta tes OTCP K BWBA 5.9 - - - - - - -

CDC Corp. G aming Hong K ong NasdaqGS CHIN.A 269.2 0.7x 0.8x 10.5x 7.4x - - -

Changyou.com Limited G aming C hina NasdaqGS C YOU 1,897.5 6.2x 5.1x 10.1x 7.9x 12.8x 11.1x 9.9x

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 1,186.5 16.2x 16.5x 27.9x 26.8x 36.4x 22.6x 17.4x

C L IC K E R Inc. Direct Marketing United S ta tes OTCB B C LK Z 0.6 0.3x - - - - - -

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 81.1 0.7x - 6. 3x - 7.3x - 3.2x

DADA S pA S ocial Networking Italy CM CM:DA 168.2 0.9x 0.9x 6. 8x 6.2x - 19.3x -

DXN Holdings B hd S ocial Networking Malays ia K LS E DXN 40.5 0.7x - - - 5.9x - 0.8x

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 6.6x - - - - - -

DigitalT own, Inc. S ocial Networking United S ta tes OTCB B DGTW 32.8 - - - - - - -

Dolphin Digital Media , Inc. S ocial Networking United S ta tes OTCB B DPDM 17.7 32.1x 1.2x - - - 1.3x -

E olith C o. L td. G aming S outh K orea KOS E A041060 34.6 2.4x - - - - - 3.1x

E xtens ions , Inc. C ontent United S ta tes OTCP K E XT I 13.3 - - - - - - -

F luid Mus ic C anada, Inc. Media United S ta tes T S X T S X:FMN 86.8 15.4x 14.7x - - - - 8.2x

F rogs ter Interactive P ictures AG G aming G ermany XT R A F R G 67.7 6.9x - - - - - 8.3x

G amania Digital E ntertainment Co. , Ltd. G aming T a iwan G T S M 6180 217.8 1.3x 1.6x 7. 8x - 23.2x - 2.8x

G ameOn Co Ltd. G aming J apan T S E 3812 73.9 - - - - 7.4x 7.7x 0.9x

G eoS entric Oyj Mobile F inland HLS E GE O1V 78.9 14.5x - - - - - 65.2x

G iant Interactive G roup, Inc. G aming C hina NYS E GA 1,587.4 - - - - 1.9x 14.6x 0.3x

G igaMedia Ltd. G aming T a iwan NasdaqGS G IGM 237.7 0.9x 0.9x - 4.2x 9.4x 8.8x 2.0x

G ravity C o. , Ltd G aming S outh K orea NasdaqGM GR V Y 40.6 - - - - 0.0x - 0.0x

G ree, Inc. S ocial Networking J apan T S E T S E : 3632 2,227.9 10.1x 5.9x 17.4x 10.8x 37.7x 21.3x 17.9x

G ungHo Online E nterta inment, Inc. Media J apan OS E 3765 216.5 1.5x - 6. 9x - 46.8x - 16.1x

HanbitS oft, Inc. G aming S outh K orea KOS E A047080 63.2 0.8x - 35.1x - 11.3x - 1.8x

IAC /InterActiveCorp. Media United S ta tes NasdaqGS IAC I 2,630.2 0.7x 0.7x 12.0x 5.1x 11.2x 29.2x 1.3x

IAS E nergy, Inc. V ideo C anada OTCB B IAS A.E 8.5 - - - - - - -

is eemedia Inc. C ontent C anada T S XV IE E 8.2 4.7x - - - - - 16.3x

J umbuck E ntertainment L imited S ocial Networking Aus tra lia AS X AS X:J MB 14.0 0.5x 0.5x 1. 1x 1.2x 4.0x 2.9x 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 1,033.9 7.4x 6.0x 16.7x 11.6x 20.6x 15.5x 5.7x

Lingo Media C orpora tion Learning C anada T S XV T S XV : LM 11.3 8.7x - - - - - 20.3x

LiveW orld Inc. S ocial Networking United S ta tes OTCP K LVWD 1.0 - - - - 65.3x - 0.4x

LookS mart, L td. Direct Marketing United S ta tes NasdaqGM LOOK 19.2 - - - - - - 0.8x

Magnitude Information S ys tems Inc. S ocial Networking United S ta tes OTCB B MAGY 8.6 - - - - - - -

Mixi, Inc. S ocial Networking J apan T S E 2121 1,106.3 7.0x 5.7x 21.1x 17.9x 55.2x 43.1x 7.1x

Modern T imes G roup Mtg AB Media S weden OM MTG B 3,170.3 1.9x 1.8x 13.1x 12.9x 17.0x 16.3x -

MOKO .mobi L imited S ocial Networking Aus tra lia AS X MK B 8.3 10.6x - - - - - 8.5x

Myriad G roup AG Mobile S witzerland S W X MYR N 200.7 3.1x - - - - - -

NE OW IZ G ames Corporation G aming S outh K orea KOS E A095660 734.0 3.5x 2.7x 13.0x 9.1x 38.2x 13.2x 19.3x

NetDragon W ebS oft, Inc. G aming C hina S E HK 777 344.4 2.2x 1.5x 7. 7x 4.3x 14.0x 11.2x 1.8x

Netease.com Inc. G aming C hina NasdaqGS NT E S 5,368.6 - - - - 3.0x 16.7x 0.9x

NeuLion Incorporated V ideo C anada T S X T S X:NLN 77.1 3.1x - - - - - 5.5x

NeXplore Corporation C ontent United S ta tes OTCP K NXPC 38.5 25.0x - - - - - -

Ngi G roup Inc. Media J apan T S E 2497 33.2 - - - - - - 0.6x

Northgate T echnologies L imited Direct Marketing India B S E 590057 21.2 0.3x - - - - 1.2x -

Open T ext C orp. C ollabora tion C anada NasdaqGS OT E X 2,156.0 2.7x 2.4x 10.5x 8.8x 47.0x 12.8x -

Openwave S ys tems Inc. Mobile United S ta tes NasdaqGS OPWV 208.0 0.5x 0.5x 16.6x 5.2x - 35.1x 2.9x

P erfect W orld C o. , Ltd. G aming C hina NasdaqGS PWR D 2,286.3 0.8x 3.7x 1. 4x 7.0x 3.2x 14.3x 1.5x

P NI Digital Media Inc. Digita l Imaging C anada T S XV T S XV :P N 54.7 2.5x 2.1x 22.8x 6.8x - 13.9x 19.1x

Quepasa C orp. S ocial Networking United S ta tes OTCB B QP S A 16.6 - - - - - - -

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 3,304.2 - - - - 2.3x 13.7x 0.9x

S hutterfly, Inc. Digita l Imaging United S ta tes NasdaqGS S FLY 404.6 1.3x 1.2x 10.8x 6.2x - 93.3x 2.4x

S K Communications Co. , Ltd. S earch S outh K orea KOS E A066270 255.8 1.3x - 20.4x - - - -

S NAP Interactive, Inc. Dating United S ta tes OTCB B S T V I 2.2 0.2x - 0. 6x - 3.8x - 1.2x

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 22.6 - - - - - - -

S ohu.com Inc. G aming C hina NasdaqGS S OHU 2,189.7 3.3x 2.8x 7. 5x 6.3x 13.3x 14.7x 4.0x

S park Networks , Inc. S ocial Networking United S ta tes AME X LOV 53.5 1.0x - 5. 0x - 17.7x - 24.1x

S pectrumDNA, Inc. Media United S ta tes OTCB B S P XA 7.3 - - - - - - 72.8x

T encent Holdings Ltd. P orta l C hina S E HK 700 34,735.2 27.6x 18.0x - 33.9x 70.9x 44.6x 31.6x

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 185.9 - - - - 2.1x - 0.1x

T heS treet.com, Inc. Media United S ta tes NasdaqGM TS CM 75.9 0.2x 0.2x 5. 8x - - - 1.0x

T ree.C om, Inc. P orta l United S ta tes NasdaqGM T R E E 79.6 0.2x 0.2x 5. 5x 6.5x - 91.8x 1.2x

Uniserve C ommunications Corp. S ocial Networking C anada T S XV T S XV :US S 0.8 0.3x - 36.4x - - - -

United Online Inc. Media United S ta tes NasdaqGS UNTD 695.3 1.0x 1.0x 4. 4x 3.9x - 6.0x -

UOMO Media , Inc Media C anada OTCB B UOMO 5.9 8.0x - - - - - -

V a lueC lick Inc. Media United S ta tes NasdaqGS VCLK 882.4 1.3x 1.4x 5. 5x 5.4x - 16.8x 4.8x

VO IS , Inc. S ocial Networking United S ta tes OTCB B VOIS 5.5 - - - - - - 34.7x

W ebzen Inc. G aming S outh K orea NasdaqGM WZE N 35.1 - - - - 0.0x - 0.0x

W izzard S oftware Corporation P odcas ting United S ta tes AME X WZE 24.6 4.8x - - - - - -

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 252.5 3.4x 2.6x 11.8x 8.3x 25.9x 17.6x 8.1x

YD Online Corp. G aming S outh K orea KOS E A052770 82.0 1.6x 1.2x 7. 3x 4.3x 8.7x 6.2x 2.7x

Y nk K orea Inc. G aming S outh K orea KOS E A023770 19.6 1.6x - 14.9x - - - 1.0x

High 34,735.2 47.2x 18.0x 36.4x 33.9x 70.9x 93.3x 72.8x

Low 0.0 0.0x 0.2x 0. 4x 1.2x 0.0x 1.2x 0.0x

Average 808.7 5.1x 3.4x 11.6x 9.1x 19.4x 20.7x 8.8xMedian 40.5 1.6x 1.5x 10.1x 6.8x 13.1x 14.6x 2.7x

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 financing

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

S ep-09 Twitter 100.0 100.0

E nsequence US A 20.0 20.0

L ivebookings 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

Vuclip 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 C anada 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. C anada 0. 5 0. 5

OnLive 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 Software US A 12.0 12.0

Spigit US A 10.0 10.0

Ooyala US A 10.0 10.0

S canS cout US A 8.5 8. 5

Box.net US A 7.1 7. 1

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

Onehub US A 1.3 1. 3

DataS ync US A 1.2 1. 2

DailyBooth US A 1.0 1. 0

Hot Potato US A 1.0 1. 0

L inkedex UK 1.0 1. 0

S tatusNet Canada 0.9 0. 9

IngBoo US A 0.8 0. 8

Chango Canada 0.7 0. 7

C redit K arma US A 0.5 0. 5

L is tia US A 0.4 0. 4

Oct-09 Total 4.5 40.9 56.5 67.4 2.0 171.3

Nov-09 Playdom US A 43.0 43.0

S ezmi US A 25.0 25.0

Millennial Media US A 16.0 16.0

E vernote US A 10.0 10.0

CubeTree US A 8.0 8. 0

Alice.com US A 6.0 6. 0

E ventbrite US A 6.0 6. 0

AppNexus US A 5.0 5. 0

Altruik US A 4.7 4. 7

B lekko US A 2.5 2. 5

C redit K arma US A 2.5 2. 5

Playfire UK 2.1 2. 1

Adfonic UK 0.6 0. 6

S coopler US A 0.5 0. 5

Nov-09 Total 1.1 52.3 24.0 52.0 2.5 131.9

Grand Total 6.2 2.0 110.1 132.7 147.3 27.6 110.0 536.0

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

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

Alice.com United S ta tes www.alice.com Alice.com, Inc. owns and operates an online reta il platform that offers household products . T he company was founded in 2008 and is based

in Middleton, W is cons in.

Altruik United S ta tes www.altuik. com Altruik , Inc. provides s earch engine optimization solutions for optimiz ing the W ebs ite content to ensure vis ibility and page rank ing. T he

company was founded in 2006 and is based in New Y ork, New Y ork.

AppNexus United S ta tes www.appnexus .com AppNexus , Inc. develops and manages online ad exchange in the United S tates and the United K ingdom. It provides on-demand production

infras tructure. It a ls o offers AppNexus cloud, an ecos ys tem in which enterpris es collaborate and share indus try-s pecific information without

the latency, bandwidth, and s ecurity is s ues of the public Internet. T he company was founded in 2007 and is based in New Y ork, New Y ork.

B lekko United S ta tes www.blekko.com B lekko, Inc. provides internet s earch solutions . B lekko, Inc. was founded in 2007 and is bas ed in United S tates .

Credit Karma United S ta tes www.creditkarma.com C redit K arma is the consumer’s advoca te for demys tifying credit and has a range of tools and information resources to help them monitor

and manage the credit aspect of their financia l hea lth. C redit K a rma’s goal is to help consumers eas ily diges t the contents of their credit

report and unders tand what makes up their credit s core. C redit K arma works with a range of partners , including mortgage lenders , credit

card providers , banks , and wireles s providers .

CubeTree United S ta tes www.cubetree.com CubeT ree, Inc. provides socia l networking software. It offers C ubeT ree AP I, a R E S T W eb s ervices AP I, which a llows applications to query

and manipulate the resources provided by the C ubeT ree W eb application. CubeT ree provides its s oftware as s ervice. T he company was

founded in 2008 and is based in R edwood C ity, C alifornia .

E ventbrite United S ta tes www.eventbrite. com Mollyguard C orpora tion, doing bus ines s as E ventbrite, provides online regis tra tion solutions to event organizers . It offers online event

management and ticketing s ervices . T he company a ls o engages in publis hing branded event pages ; promoting events online; and s elling

event tickets through the personalized event regis tration W eb page. In addition, it offers an online events marketplace that enables

individuals , bus ines ses , and organiza tions of various s izes manage, promote, and s ell their events . T he company s erves event organizers ,

a s well as various non-profits , univers ities , libra ries , and organizations . Mollyguard C orporation was founded in 2006 and is based in S an

F rancis co, C alifornia .E vernote United S ta tes www.evernote.com E vernote C orporation offers handwriting recognition and digita l ink s oftware and technologies for us ers , s ys tem integrators , va lue added

resellers , and original equipment manufacturers in California . T he company’s products include riteP en, a handwriting recognition and

navigation software for Microsoft W indows -based pen-enabled computers , which converts text for use in various W indows applications ,

including Word, E xcel, Outlook, and others ; and riteF orm, a s oftware developer tool for multi-pla tform handwriting recognition on pen-

enabled devices , as well a s for the mobile enterpris e and small bus ines s markets . Its products a ls o compris e riteS hape, a protected shape

and chart recognition technology that recognizes , improves , and a ligns geometrica l s hapes or polylines created in freehand drawings ; and

riteS cript, a natura l handwriting recognition technology, which runs locally and s erver-s ide for proces s ing of digita l ink notes taken on pen-

enabled devices and recognition of online forms . T he company was formerly known as E vernote, LLC and changed its name to E vernote

C orpora tion in S eptember 2004, as a result of the merger between

P en& Internet, Inc. and E vernote, LLC . E vernote C orpora tion is based in Mountain V iew, C alifornia .

Millennial Media United S ta tes www.millennia lmedia . com Millennia l Media , Inc. operates as a mobile media networks company. Its products and solutions include MB rand, a mobile advertis ing

network; Decktrade, a performance-based mobile advertis ing network, which enables users to build, adjus t, analyze, and manage their

campaigns on cos t-per-click bas is ; Motion, a media mobile advertis ing; and Decktrade network that enables us ers to target by content,

geography, carrier, device capability, and handset, for various mobile products or s ervices . T he company was founded in 2006 and is based

in B altimore, Maryland. It has offices in New Y ork, New Y ork; C hicago, I llinois ; and Los Angeles , C a lifornia .

Motley Fool United S ta tes www. fool. com The Motley F ool, Inc. operates as a multimedia financia l-s ervices company. T he company provides financia l s olutions for various inves tors . It

reaches people each month through its Webs ite, books , newspaper column, televis ion appea rances , and subscription news letter s ervices .

T he company’s s ervices include subscription inves tment news letter that provides information on blue-chips , mutual funds , undis covered

small caps , and growth s tocks , as well as delivers s tock and fund recommendations ; and F ool.com that publis hes articles to offer news ,

analys is , and commentary through a range of dis tribution partnerships primarily with Y ahoo! , MS N, and AOL. Its s ervices a ls o compris e

CAP S , a Motley F ool community members ’ s tock-rating s ervice; a weekly newspaper column; books in print on inves ting and pers onal-

finance; independent analys is and engaging commentary for bus ines s reporters , as well as radio and T V producers ; F ool UK , a financia l

W ebs ite in the United S tates ; and consumer finance advices that range from buying a home to dealing with taxes , and from managing credit-

card debt to s aving for retirement. Its products and s ervices further include credit cards ; online news letter as an inves tment guide; and reports on small-cap inves ting, income s tock res earch,

va lue s tock res earch, million dollar portfolio s ervice, different portfolios , and s tock advisory. T he company a ls o provides information on bonds ,

broker comparis on, E T F s , index funds , mutual funds , and s tock ideas ; and s aving and spending, credit and debt, home and real es tate, death and

T axes , and IR As . T he Motley F ool was founded in 1994 and is bas ed in Alexandria , V irginia .

Phoenix New Media China NA P hoenix New Media Ltd. operates Internet porta ls which provide news and enterta inment content. P hoenix New Media Ltd. was founded in

2005 and is based in China . P hoenix New Media Ltd. operates as a s ubs idiary of P hoenix S atellite T elevis ion Holdings Ltd.

Playdom United S ta tes www.playdom.com P laydom, Inc. offers s ocia l games through the Internet. T he company delivers games on F acebook, MyS pace, hi5, T agged, and iP hone.

P laydom, Inc. was founded in 2008 and is based in Mountain V iew, C alifornia .

PlayFish UK P layfis h L imited, a s ocia l games company, develops and publis hes video games for s ocia l networks . It creates games for people to play

together us ing socia l networks , s uch as F acebook, MyS pace, B ebo, Y ahoo! , iP hone, and iP od touch. T he company a ls o offers advertis ing

opportunities , including in-game video ads and sponsors hips packages . P layfis h L imited was founded in 2007 and is headquartered in

London, the United K ingdom with additional offices in B eijing, China ; S an F rancis co, C alifornia ; and T romso, Norway. As of November 9,

2009, P layfis h L imited operates as a s ubs idia ry of E A Interactive.

S coopler United S ta tes www.s coopler. com S coopler, Inc. , a real-time s earch engine, aggregates and organizes content being sha red on the internet as it happens . It offers s earch

options on enterta inment, technology, s ports , world and bus ines s , s cience, gaming, politics , and lifes tyle topics . T he company was

incorporated in 2008 and is based in S an F rancis co, C a lifornia .

S ezmi United S ta tes www.sezmi.com S ezmi Corporation markets and dis tributes digita l broadcas t and broadband solutions to the consumer s ector. T he company provides digita l

media receivers and home enterta inment content s ervices . It offers equipment and solutions to integrate cable network programming, on

demand movies , Internet based videos , and live broadcas ting s ervices . S ezmi Corporation was founded in 2003 as B uilding B , Inc. and

changed its name to S ezmi C orporation in May 2008. T he company is based in B elmont, C alifornia with additiona l offices in S anta Monica ,

C alifornia and Fort Lauderda le, F lorida .

wooga Germany www.wooga.net wooga GmbH develops and markets casua l games for s ocia l networks . T he company was founded in 2009 and is based in B erlin, G ermany.

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

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Technology

Transcript of 09 11 17 Web 2.0 Weekly