09 11 24 Web 2.0 Weekly

SOFTWARE & SERVICES 24 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

LAUNCHED COVERAGE OF POYNT DEVELOPER, MULTIPLIED MEDIA

GROWTH IS THE POYNT Initiated coverage with a BUY recommendation: We init iated coverage of Multiplied Media Corporation on November 19, 2009 with a BUY recommendation and $0.40 FTM (forward 12 months) target price. For our detailed analysis of Multiplied Media, please refer to our ful l length report t it led, Growth is the Poynt.

With exponential user growth, MMC has reached a revenue inflection point: The Poynt user base has grown at a compound monthly rate of 50% since launch, with average monthly user additions at 144,000 since launch on BlackBerry App World in April 2009. We expect Q4/F09 to represent a revenue inflection point with 100% sequential growth to $200,000, and 1,135% year-over-year revenue growth in F2010 to $5.2 mill ion.

User-base monetization should result in EBITDA positive status in 2H/10: As the rapidly-growing Poynt user base is monetized via query fees, transaction fees, and the sale of on-screen advertising space, we expect MMC’s EBITDA margin to climb above zero in the second half of F2010. We believe that the company should approach steady-state EBITDA margin of 40%-60% after i ts revenue base surpasses the key $100 mil lion plateau.

Catalysts abound: Near-term growth catalysts include expansion to new platforms (launch on the Apple platform in December 2009/January 2010), functionality (addition of new functions, such as local weather and gasoline station search/pricing), and geographies (continued ramp-up in Germany and the UK). Over the next 24 months, we expect a further boost from a potential Google Android launch, addition of the UnoMobi business, launch of on-screen advertising within Poynt, and additional European expansion.

UnoMobi – additional revenue streams and IP protection: Although the acquisition of UnoMobi’s email-to-SMS business adds an attractive revenue stream, the key rationale for the acquisition is the securing of UnoMobi’s U.S. patents which govern the provision of advertising to GPS-based mobile devices.

Valuation: MMC currently trades at EV/R and EV/EBITDA multiples of 1.2 times and 2.0 times our FTM+2 estimates (ending June 2012), respectively. Our target price of $0.40 is based on our discounted cash-flow analysis and implies 3.8 times and 6.3 times our FTM+2 revenue and EBITDA estimates of $25.4 mil lion and $5.3 mil lion, respectively.

Poynt Monthly User Base

November 2008 - April 2010E

-

500

1,000

1,500

2,000

2,500

3,000

Oct-0

8

Dec

-08

Feb

-09

Apr-0

9

Jun

-09

Aug

-09

Oct-0

9

Dec

-09

Feb

-10

Apr-1

0

Un

ique

Us

ers

(th

ousa

nds

)

LTM compound monthly growth = 50%

BlackBerry

Development

Challenge

Grand Prize

Poynt

available on

BlackBerry

App WorldPoynt launches in Germany

Poynt launches in UK

Estimated iPhone/iPod Touch

launch date

European

expansion

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 $71 bill ion (Figure 1). The median market cap for the group is $40 mill ion, with average trail ing revenue of $166 mil lion (median $52 mill ion). The companies are also generally profitable with a median EBITDA margin of 12.1%. On a valuation basis, the overall average is 5.0x trai ling revenue (median 1.5x) and 11.7x 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. 9/30/2009 AC LZ OT C B B US D United S ta tes 0.55 15.8 4.1 (1.5) -36.5% 5.0x - 11 Actoz S oft C o. , Ltd. 6/30/2009 A052790 K OS E KR W S outh K orea 16,700 121.3 108.7 25.9 23.8% 0.8x 3.4x NA AQ Interactive, Inc. 9/30/2009 3838 T S E J P Y J apan 40,000 24.3 74.0 3.8 5.1% 0.0x 0.4x NA Associated Media Holdings Inc. 6/30/2007 AS MH OT C P 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 OT C B B US D United S ta tes 0.03 2.0 0.1 (1.5) NM 48.4x - 4 B etawave C orporation 6/30/2009 B W AV OT C B B US D United S ta tes 0.03 0.9 9.4 (12.6) NM - - 51 B eyond C ommerce, Inc. 6/30/2009 B YOC OT C B B US D United S ta tes 0.05 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 roadW ebAs ia Inc. 9/30/2008 B W B A OT C P K US D United S ta tes 0.09 7.6 0.0 (4.6) NM - - 46 C DC C orp. 6/30/2009 C HIN.A NasdaqGS US D Hong K ong 2.56 271.3 361.6 25.1 6.9% 0.7x 10.6x 2,227 C hangyou.com L imited 9/30/2009 C YOU NasdaqGS US D C hina 33.98 1,868.9 255.3 157.4 61.7% 6.1x 9.9x 628 C hina Ga teway C orporation 9/30/2008 C GW Y OT C P 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 T W D T aiwan 457 1,185.2 68.3 39.6 58.0% 16.2x 27.9x NA C LIC K E R Inc. 5/31/2009 C LK Z OT C B B US D United S ta tes 0.01 0.4 2.5 (1.2) -45.8% 0.2x - 22 C ornerW orld C orpora tion 7/31/2009 C W R L OT C B B US D United S ta tes 0.04 3.8 6.8 NM NM 2.1x - 16 C yberplex Inc. 9/30/2009 T S X:C X T S X C AD C anada 1 76.7 105.6 11.7 11.1% 0.5x 4.9x NA DADA S pA 6/30/2009 C M:DA C M E UR Italy 6.85 162.5 241.9 31.8 13.1% 0.9x 6.7x NA DXN Holdings B hd 8/31/2009 DXN K LS E MYR Ma lays ia 0.62 40.1 77.3 (84.0) NM 0.7x - NA Dibz International, Inc. NA DIB Z OT C P 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 OT C B B US D United S ta tes 0.05 4.4 1.0 (1.4) NM 6.4x - 7 Digita lT own, Inc. 8/31/2009 DGT W OT C B B US D United S ta tes 1.40 38.3 0.0 (1.8) NM - - 3 Dolphin Digita l Media , Inc. 6/30/2009 DP DM OT C B B US D United S ta tes 0.30 16.1 0.6 (3.4) NM 29.3x - 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 OT C 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:F MN T S X C AD United S ta tes 1.95 94.1 5.3 (5.1) -95.2% 16.9x - NA F rogs ter Interactive P ictures AG 6/30/2009 F R G XT R A E UR Germany 16.57 62.2 9.6 (4.5) -47.0% 6.3x - NA G amania Digita l E ntertainment C o. , Ltd. 9/30/2009 6180 G T S M T W D T aiwan 46.50 217.8 151.2 24.9 16.5% 1.3x 7.8x NA G ameOn C o Ltd. 9/30/2009 3812 T S E J P Y J apan 65,100 70.4 79.3 18.6 23.5% - - NA G eoS entric Oyj 6/30/2009 G E O1V HLS E E UR F inland 0.04 52.6 5.4 (17.4) NM 9.7x - 115 G iant Interactive G roup, Inc. 6/30/2009 GA NY S E US D C hina 7 1,551.1 198.5 124.1 62.5% - - 1,570 G igaMedia Ltd. 3/31/2009 G IGM NasdaqGS US D T aiwan 4.05 220.8 183.6 NM NM 0.8x - 751 G ravity Co. , Ltd 9/30/2009 GR V Y NasdaqGM US D S outh K orea 1.44 40.0 49.9 17.7 35.4% - - 469 G ree, Inc. 9/30/2009 T S E :3632 T S E J P Y J apan 4 ,360 2,182.9 210.3 122.2 58.1% 9.9x 17.0x NA GungHo Online E ntertainment, Inc. 6/30/2009 3765 OS E J P Y J apan 157,500 201.8 119.5 26.6 22.2% 1.4x 6.3x NA HanbitS oft, Inc. 6/30/2009 A047080 K OS E KR W S outh K orea 3 ,510 64.4 60.7 1.4 2.3% 0.8x 36.0x NA IAC /InterActiveC orp. 9/30/2009 IAC I NasdaqGS US D United S ta tes 19.97 2,635.4 1,359.6 82.4 6.1% 0.7x 12.0x 3,200 IAS E nergy, Inc. 4/30/2009 IAS A.E OT C B B US D C anada 0.11 7.8 0.0 (0.6) NM - - NA is eemedia Inc. 6/30/2009 IE E T S XV C AD C anada 0.20 9.7 1.7 (4.5) NM 5.5x - NA J umbuck E nterta inment L imited 6/30/2009 AS X:J MB AS X AUD Aus tralia 0.34 14.2 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 C AD C anada 0 0.6 67.9 4.0 5.8% - - NA K ingsoft C o. Ltd. 6/30/2009 3888 S E HK HK D C hina 7 1,001.5 139.1 61.4 44.2% 7.1x 16.1x 2,463 L ingo Media C orporation 6/30/2009 T S XV :LM T S XV C AD C anada 0.99 11.3 1.2 (1.9) NM 8.7x - NA L iveW orld Inc. 9/30/2009 LVW D OT C P 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 1.13 19.4 54.0 (4.5) -8.4% - - 90 Magnitude Information S ys tems Inc. 6/30/2009 MAGY OT C B B US D United S ta tes 0.02 10.6 0.1 (2.5) NM - - 14 Mixi, Inc. 9/30/2009 2121 T S E J P Y J apan 699000.00 1,204.6 139.6 46.1 33.0% 7.7x 23.2x NA Modern T imes G roup Mtg AB 9/30/2009 MT G B OM S E K S weden 327.50 3,099.3 2,002.6 282.9 14.1% 1.8x 12.9x 2,969 MOK O.mobi L imited 6/30/2009 MK B AS X AUD Aus tralia 0.13 11.5 0.7 (2.4) NM 15.3x - NA Myriad G roup AG 6/30/2009 MY R N S W X C HF S witzerland 4.83 207.1 63.0 3.4 5.4% 3.2x - 405 NE OW IZ G ames Corpora tion 12/31/2008 A095660 K OS E KR W S outh K orea 41350.00 730.5 207.3 55.7 26.8% 3.5x 12.9x NA NetDragon W ebS oft, Inc. 6/30/2009 777 S E HK HK D C hina 5 338.3 89.3 25.7 28.7% 2.1x 7.5x 3,109 Netease.com Inc. 9/30/2009 NT E S NasdaqGS US D C hina 37.85 4,898.8 482.9 291.8 60.4% - - 3,109 NeuLion Incorporated 9/30/2009 T S X:NLN T S X C AD C anada 0.84 89.9 24.9 (16.1) -64.5% 3.2x - 237 NeXplore C orporation 6/30/2009 NXP C OT C P K US D United S ta tes 1 41.3 1.7 (13.3) NM 26.6x - NA Ngi G roup Inc. 6/30/2009 2497 T S E J P Y J apan 24480.00 33.9 93.0 6.9 7.4% - - NA Northgate T echnologies L imited 9/30/2009 590057 B S E INR India 27.05 19.7 46.4 (49.8) NM 0.4x - NA Open T ext C orp. 9/30/2009 OT E X NasdaqGS US D C anada 36.68 2,068.1 814.5 211.1 25.9% 2.6x 10.1x 3,900 Openwave S ys tems Inc. 9/30/2009 OP W V NasdaqGS US D United S ta tes 2.50 208.8 190.5 6.2 3.3% 0.5x 16.7x 590 P erfect W orld C o. , Ltd. 9/30/2009 P W R D NasdaqGS US D C hina 43.67 2,172.9 286.1 157.4 55.0% 0.5x 0.9x 2,096 P NI Digita l Media Inc. 6/30/2009 T S XV :P N T S XV C AD C anada 1.70 53.5 21.0 2.3 11.0% 2.5x 22.3x NA Quepasa C orp. 9/30/2009 QP S A OT C B B US D United S ta tes 1 15.8 0.2 (9.8) 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 C hina 49.42 3,323.7 629.0 296.7 47.2% - - 3,124 S hutterfly, Inc. 9/30/2009 S FLY NasdaqGS US D United S ta tes 14.87 381.8 223.1 27.0 12.1% 1.2x 10.0x 514 S K C ommunications C o. , Ltd. 12/31/2008 A066270 K OS E KR W S outh K orea 8000.00 280.7 192.7 12.5 6.5% 1.5x 22.4x NA S NAP Interactive, Inc. 6/30/2009 S T V I OT C 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 OT C P 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 OT C 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 OT C B B US D United S ta tes 0.41 19.2 0.0 (5.6) NM - - NA S ohu.com Inc. 9/30/2009 S OHU NasdaqGS US D C hina 53.86 2,071.3 501.0 218.4 43.6% 3.1x 7.0x 3,197 S park Networks , Inc. 9/30/2009 LOV AME X US D United S ta tes 2 51.2 47.5 10.0 21.0% 1.0x 4.7x 183 S pectrumDNA, Inc. 6/30/2009 S P XA OT C B B US D United S ta tes 0 6.8 0.1 (2.5) NM - - 7 T encent Holdings Ltd. 9/30/2009 700 S E HK HK D C hina 148 34,711.8 1,588.4 811.3 51.1% 24.0x 46.9x 6,194 T he P arent C ompany 8/2/2008 K IDS .Q OT C P 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 C hina 7.55 189.4 250.6 85.5 34.1% - - 1,626 T heS treet. com, Inc. 3/31/2009 T S C M NasdaqGM US D United S ta tes 2.37 72.5 67.0 1.9 2.9% 0.1x 4.1x 310 T ree.C om, Inc. 9/30/2009 T R E E NasdaqGM US D United S ta tes 7.01 76.4 217.1 9.7 4.5% 0.2x 5.2x 700 Unis erve C ommunica tions C orp. 8/31/2009 T S XV :US S T S XV C AD C anada 0.05 1.1 16.1 0.1 0.9% 0.4x 38.7x NA United Online Inc. 9/30/2009 UNT D NasdaqGS US D United S ta tes 7.09 599.7 996.8 212.9 21.4% 0.9x 4.0x 1,469 UOMO Media , Inc 7/31/2009 UOMO OT C B B US D C anada 0 5.7 0.8 (0.4) -54.2% 7.8x - NA V alueC lick Inc. 9/30/2009 V C LK NasdaqGS US D United S ta tes 10 871.2 545.7 130.8 24.0% 1.3x 5.4x 1,189 V OIS , Inc. 6/30/2009 V OIS OT C B B US D United S ta tes 0 9.9 0.0 (1.0) NM - - 4 W ebzen Inc. 6/30/2009 W ZE N NasdaqGM US D S outh K orea 2.84 33.7 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 0.46 24.6 5.3 (4.5) -84.9% 4.8x - 110 W orlds . com Inc. 6/30/2009 W DDD OT C B B US D United S ta tes 0.10 5.4 0.1 (0.7) NM - - 1 W ynds torm Corpora tion NA W YND OT C P K US D United S ta tes 0.10 1.8 NA NM NM - - NA XING AG 9/30/2009 O1B C XT R A E UR Germany 32.55 251.3 62.5 16.9 27.0% 3.1x 11.6x 174 YD Online C orp. 12/31/2007 A052770 K OS E KR W S outh K orea 6150.00 77.3 57.4 12.4 21.6% 1.5x 7.0x NA Ynk K orea Inc. 12/31/2008 A023770 K OS E KR W S outh K orea 4035.00 18.0 11.9 1.3 10.5% - - NA

High 34,711.8 2,002.6 811.3 62.5% 48.4x 46.9x 6,194Low 0.0 0.0 -84.0 -98.9% - - 1

Average 796.6 165.7 41.0 8.0% 5.0x 11.7x 940Median 40.1 51.9 2.1 12.1% 1.5x 7.8x 237

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 – making some big deals: Total transaction value in the Web 2.0 universe for November is $201.9 mill ion. November has shown improvement with the number of f inancings up to 17 averaging $11.9 mill ion each (vs. an average of $9.4 mill ion over 14 deals as of 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 mill ion (29 deals).

Financing Activity Last Twelve Months

6.76.5

7.1

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

Deal round-up for November: 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.

• RockYou – widget maker – raised $50 mill ion in a Series D financing.

• Playdom – social network-based games developer– raised $43 mil lion in its first venture financing.

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

• 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.

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

• Millennial Media – a mobile media network – raised $16 mil lion in Series C funds.

• Qunar.com – a Beijing-based travel price aggregation site – received $15 mill ion in funding.

• Zynga – developer of popular Facebook game, Farmville, among others – raised $15 mill ion in its third f inancing.

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 (nine). Advertising continues to be among the highest activity sectors in the past quarter (eight deals). Gaming and Collaboration-related companies have been hot recently, garnering the third highest number of deals (seven each). (Figure 4). The $2.0 bill ion acquisition of Skype skews the dollars transacted to the SMS/Voice segment, while the $400 mil lion acquisit ion 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

2,025.0 417.1 178.3 102.0 100.9 93.3 57.0 51.4 50.0 49.9 45.5 37.5 30.0 25.6 18.6 17.2 16.2 15.0 13.0 10.0 9.9 7.0 6.4 4.0 3.6 2.20.0

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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

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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

11/9

/2009

11/2

3/2

009

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

Figure 5. Web 2.0 Price Performance Source. Capital IQ

Market pull-back continues: Twelve 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

-13.7%-8.8%

-8.2%-7.9%

-7.2%-7.1%

-5.9%-5.7%-5.6%-5.4%

-4.6%-4.4%-4.2%-4.1%-4.1%-4.0%-3.7%

-3.4%-3.1%

-2.3%-2.3%-2.2%

-1.8%-1.5%-1.4%-1.3%

-0.5%-0.5%

-0.1%-0.1%

0.0%0.2%0.4%0.6%0.8%0.9%0.9%

1.5%1.9%1.9%

3.2%8.3%

9.7%

-0.15 -0.1 -0.05 0 0.05 0.1 0.15

United Online Inc .Neteas e.com Inc .

Frogs ter Interactive Pictures AGY nk K orea Inc .

Northgate Technologies L imitedGigaMedia Ltd.Cyberplex Inc .

Y D Online Corp.S hutterf ly , Inc .S ohu.com Inc .

Quepas a Corp.TheS treet.com, Inc .

S park Netw orks , Inc .Open Tex t Corp.

Webzen Inc .Tree.Com, Inc .

Perfect World Co. , Ltd.DADA S pA

K ings oft Co. Ltd.PNI Digita l Media Inc .

G iant Interactive Group, Inc .Modern Times Group Mtg A B

NetDragon WebS oft, Inc .Changyou.com Limited

Gravity Co. , LtdV alueClick Inc .

NEOWIZ Games CorporationXING AG

Chines e Gamer InternationalTencent Holdings Ltd.

Gamania Digita l Entertainment Co. , Ltd.IAC/InterActiveCorp.

Openw ave S ys tems Inc .S handa Interactive Entertainment Ltd.

CDC Corp.Eolith Co. Ltd.

LookS mart, Ltd.Actoz S oft Co. , Ltd.

HanbitS oft, Inc .The9 L imited

Myriad Group AGFluid Mus ic Canada, Inc .

S K Communications Co. , Ltd.

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

E xtens ions , Inc . (OTCPK :E XTI) E xtens ions , Inc. announced delayed 10-Q filing

On 11/16/2009, E xtens ions , Inc. announced that they will be unable to file their next 10-Q by the deadline required by the S E C .

iseemedia Inc . (TS XV: IE E ) is eemedia Inc. announced it expects to receive CAD 2.5 million in funding.

is eemedia Inc. (T S XV : IE E ) announced a private placement of 15,625,000 units a t a price of CAD 0.16 per unit for gros s proceeds of CAD 2. 5 million on November 16, 2009. E ach unit will cons is t of one common share and one-half of one

common share purchase warrant. E ach warrant entitles the holder to purchas e one common share of the company at CAD 0.32 for a period of 24 months .

Northern S ecurities Inc. acted as a placement agent to the trans action. The agent will have the option to purchase up to an

additional 3,125,000 units at CAD 0.16 per unit, for additional gros s proceeds of up to $500, 000 prior to clos ing of the transaction. T he s ecurities is sued a re subject to a hold period of four months . T he trans action is expected to close by December 11, 2009. Northern S ecurities Inc. will receive a cash commis s ion of 8% of the gros s proceeds . In addition the agent will a lso receive a work fee of CAD 25,000.

Perfect World Co., Ltd.

(NasdaqGS :PWRD)

P erfect W orld Co. L td. R eports C onsolidated Unaudited E arnings R esults for the Third

Quarter E nded S eptember 30, 2009 ; P rovides E arnings G uidance for the F ourth Quarter of

2009

P erfect W orld C o. L td. reported consolidated 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 agains 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 agains t R MB 207, 573, 759 a year ago. Net income was R MB 289,013,119 agains 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 agains 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 agains 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 s oftware was R MB 59, 754, 724 agains t R MB 62,749,284 a year ago. Non-G AAP

operating profit was R MB 317,891,325 aga ins 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-G AAP net earnings per ADS Diluted was R MB 5. 88 aga ins t R MB 3.56 a year ago.

F or the fourth quarter of 2009, the company's tota l revenues a re expected to be between R MB 578 million and R MB

602 million, representing a decline of 2% to an increase of 2% on a s equentia l bas is and an increase of 38% to 44% on a year-over-year bas is . T his reflects the expected growth from the company's exis ting games and the anticipated

contribution from the newly launched F antas y Zhu Xian.

Betawave Corporation (OTCBB :BWAV) B etawave C orporation R eports C onsolidated E arnings R esults for the Third Quarter and

Nine Months E nded S eptember 30, 2009 ; P rovides R evenue G uidance for the Fourth

Quarter of 2009 and F irs t Quarter of 2010

B etawave C orporation reported consolidated earnings res ults for the third quarter and nine months ended S eptember 30, 2009. The company's tota l revenues decreased to $1,725,499 from $2,786,139 for the three months of 2009. This is

primarily because reta il advertis ing, which compris ed the majority of the company's third quarter 2008 revenue, was one of the advertis ing sectors hardes t hit by the recent economic cris is . F or the quarter, net los s was $4,331,469 or $0. 15 per bas ic and diluted s hare aga ins t $3,249,036 or $0.13 per bas ic and diluted share las t year.

SNAP Interactive, Inc. (OTCBB :S TVI) S NAP Interactive Inc. R eports E arnings R esults for the Third Quarter and Nine Months

E nded S eptember 30, 2009

S NAP Interactive Inc. reported earnings results for the third quarter and nine months ended S eptember 30, 2009. F or the quarter, the company reported revenue decreas ed from $871, 324 to $801,120 for the three months ended S eptember 30,

2009, a decrease of $70,204. T hese revenues are primarily generated from advertis ements and premium features placed on various applications . Net Income decreas ed to $22,736 from $410, 283 for the three months ended S eptember 30, 2008, representing a decrease of $387,547. T he decreas e in net income was primarily due to the provis ion for income taxes which were not incurred during mos t of the s ame period las t year due to a net operating los s carry-forward from previous quarters ,

increased expenses due to the hiring of additiona l s ta ff and the overall expans ion of operations , as well as decreas ed advertis ing payouts and the revenue recognition impact of shift to a subscription model in which revenue is recognized on a

deferred bas is when subs criptions occur over more than a s ingle month. The decrease in revenue for the three months ended S eptember 30, 2009 as compared to the

s ame period in 2008 is primarily due to decreased advertis ing payouts as well as the revenue recognition impact of shift to a subscription model in which revenue is recognized on a deferred bas is when subs criptions occur over more

NeXplore Corporation (OTCPK :NXPC) NeXplore C orporation Announces

Management Appointments

NeXplore C orporation announced the addition of two former Micros oft executives to the company's s trategic development

team and board of advis ors . Amar Nehru, former general manager, emerging markets group for Microsoft C orporation, and Hani Imam, former genera l manager, finance operations for Microsoft Corporation, will provide s tra tegic guidance to

NeXplore's s enior executive team in s upport of the company's aggres s ive bus ines s and revenue growth goals . During his 12-year tenure with Microsoft C orporation, Amar Nehru held numerous s enior management pos itions while contributing to Microsoft's market expans ion and revenue growth. Mos t recently, Nehru s erved as general manager, emerging markets group for Microsoft Corporation, where he led bus ines s development and market s trategy for Microsoft's mobile and low-cos t computing bus ines ses . Hani Imam's career with Micros oft spans acros s 10 years and touches on virtua lly a ll aspects of corporate financia l and accounting operations , including reporting, planning, forecas ting and inves ting. As general manager,

Imam led a corporate initia tive to improve worldwide finance proces s es , s ys tems and organizations in the a reas of cus tomer proposa ls , contracts , credit, revenue as surance and collections .

Figure 7a. Key Developments Source. Capital IQ


Wizzard Software Corporation

(AMEX:WZE )

W izzard S oftware C orporation R eports

E arnings R esults for the Third Quarter of 2009

W izzard S oftware C orporation reported earnings res ults for the third quarter of 2009. The company recorded revenues of

$1,384,218, a 10% decrease from revenues of $1,533,339 in the third quarter of 2008. T he decreas e for the third quarter of 2009 reflects a decrease in revenue in hea lthcare bus ines s s egment due to the economic reces s ion, primarily due to a

decreas e in s ta ffing revenues within B illings , Montana hea lthcare subs idiary. T he company's net los s available to common shareholders was $1,508,249, or $0. 03 per share, in the third quarter of 2009, versus a net los s of $1 460, 219, or $0.03 per

share, in the third quarter of 2008. Included in the net los s was non-cas h charges of $909,154 for interes t expense on the dis count of notes payable and the re-pricing of warrants .

E olith Co. L td. (KOS E :A041060) E olith C o. Ltd. has filed a Follow-on E quity Offering in the amount of K R W 999.90 million.

E olith Co. L td. has filed a Follow-on E quity Offering in the amount of K R W 999.90 million.

GeoS entric Oyj (HLSE :GEO1V) G eoS entric Oyj, S pecial/E xtraordinary

S hareholders Meeting, Nov 17, 2009

G eoS entric Oyj, S pecial/E xtraordinary S hareholders Meeting, Nov 17, 2009, at 07:30 G MT T ime. Location: Hotel K Ã¤mp,

P ohjois esplanadi 29, 00100 Hels ink i,F inland. Agenda : To cons ider authoriz ing the B oard to decide upon ra is ing new financing through G eoS olutions Holdings N.V . T he C ompany has negotia ted with certa in ins titutional and qua lified inves tors

about new financing amounting up to E UR 25,000,000 at maximum and the conditions thereof. T he purpose of the financing is to s ecure the working capital needs of the group and support the execution of the bus ines s plan. The current plan is to

rais e the financing in one or s evera l tranches by March 2010. T he financing would be in a form of a convertible note is s ued by company's 100% owned s ubs idia ry G eoS olutions Holdings N.V . T he B oard proposes to the E xtraordinary G enera l Meeting that it will authorize the B oard decide upon the terms and condition of the financing. T he main terms of the financing would be as follows : T he financing shall be implemented by offering of convertible notes entitling to subs cription of

G eoS olutions Holdings N.V 's s hares to a limited number of s elected inves tors .

Openwave Sys tems Inc.

(NasdaqGS :OPWV)

Openwave S ys tems Inc. Introduces New P roactive S ervice Mediation and P olicy

Management S olution

Openwave S ys tems Inc. announced Openwave(R ) Integra 3. 0, a L inux-based, proactive s ervice mediation and policy management solution that supports a ll of Openwave's s ervice management products and affords operators the flexibility to

s elect the deployment architecture and features that meet their specific needs , while enabling overa ll T CO. Openwave will demons trate Integra 3.0, at s tand B 01 at Mobile As ia Congres s located in Hong K ong, on November 18-19, 2009. Integra

3.0 is des igned to allow operators to effectively manage, monitor and monetize mobile traffic from an increas ingly diverse s et of devices and internet content all from a s ingle point of control in-network. W ith Integra 3.0, the operator is fully capable of continuing to manage and provide s ervices for tra ffic from legacy devices and networks while at the s ame time catering to the often separate needs of data hungry devices that a re emerging in the market. Integra can rapidly and mas s ively s cale as traffic grows and can deploy new mobile data s ervices acros s converging acces s networks and devices .

IB3 Networks , Inc . (OTCBB : IBNW) IB 3 Networks Inc. Announces Management

C hanges ; to Amend B ylaws of the C ompany

On November 13, 2009, immediately prior to the Annua l Meeting of S tockholders of IB 3 Networks Inc. , Mr. E ric S chmidt

indicated that he would be submitting his Thirty Day letter of res ignation as C E O and Cha irman of the B oard of Directors of the Company at the conclus ion of the S tockholders meeting. Immediately following the Annual Meeting of the S tockholders

of the company the newly elected B oard of Directors , cons is ting of Mr. Michael J acobson and Mr. Arthur K aplan met and appointed Ms . Carolyne S . J ohns on to fill a newly created vacancy on the B oard. The new B oard then met to dis cus s Mr. S chmidt's letter of res ignation. On November 13, 2009, Mr. Michael J acobs on, 47, was appointed as C ha irman of the B oard and P res ident of the C ompany to s erve until the next Annual Meeting of S tockholders of the C ompany. F rom December,

2008 and continuing, Mr. J acobson is P res ident of NY C Mags Inc. and Madison Avenuematch.com. P rior to that time, Mr. J acobson was P ublisher/E ditor of T rump Magazine. On November 13, 2009, Ms . Carolyne S . J ohns on, age 62, was

appointed as a Director of the C ompany to fill a newly created pos ition on the B oard to s erve until the next Annual Meeting of

Burda Digital GmbH; C inco Capital

GmbH; XING AG (XTRA:O1BC)

B urda Digita l G mbH agreed to acquire 25.1% s take in XING AG (XTR A: O1B C ) from C inco

C apital GmbH for €48.3 million.

B urda Digita l G mbH agreed to acquire 25. 1% s take in XING AG (XTR A: O1B C ) from C inco C apita l G mbH for €48. 3 million on November 18, 2009. Under the terms , B urda Digita l will acquire 1.3 million shares in C inco Capita l a t a price of €36.5 per

share. T he dea l is subject to G erman F ederal Cartel Office. T he dea l was approved by XING 's board.

Acer Inc. (TSE C :2353); Advanced Micro

Devices Inc . (NYS E :AMD); Perfect

World Co., Ltd. (NasdaqGS :PWRD)

P erfect W orld Forms P artnerships with

Advanced Micro Devices Inc. and Acer Inc

P erfect W orld C o. L td. announced s tra tegic marketing partnerships with Advanced Micro Devices Inc. and Acer Inc. The

three parties jointly promoted gaming laptops .

Giant Interactive Group, Inc.

(NYSE :GA)

G iant Interactive G roup Inc. E s tablishes F ive

S ubs idia ries to R eform P roperty R ights

G iant Interactive G roup Inc. announced to formally s tart its reform of property rights by es tablishing five subs idia ries . T he

company holds 51% shares in each s ubs idia ry and the members of the projects ' core team hold the res t 49% . According to the company's articles of as socia tion, thes e five s ubs idia ries have full decis ion-making autonomy, including the res earch

and development (R &D) of projects and domination of the manpower, materia l and financial resources . The core team numbers and the parent share profits ga ined from each project in proportion to their res pective contributions .

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


DigitalPos t Interactive, Inc .

(OTCBB :DGLP)

Digita lP os t Interactive Inc. R eports E arnings R esults for the Third Quarter and Nine Months E nded S eptember 30, 2009

Digita lP os t Interactive Inc. reported earnings res ults for the third quarter and nine months ended S eptember 30, 2009. F or the quarter, the company's tota l revenue grew 160% to $371, 600, from $142,700 in third-quarter 2008. T he company's cas h used in operations improved to $75,600 from $279,200 in third-quarter 2008. T he decline in cas h us age is the result of the C ompany's revenue growth and reduced operating expenses . T he company's net los s narrowed to $600,900 from net los ses of $883, 800 in third-quarter 2008. Net los s for third-quarter 2009 includes non-cash items of $171,500 in s tock-bas ed compens ation, $155,000 of amortization of debt dis counts , $187,100 of beneficial convers ion liability and $42,800 of depreciation and amortization. On a s equential quarterly bas is the decreas e of tota l revenue was $4,800 from $376,400 for the s econd-quarter 2009 to $371,600 for the third-quarter 2009. The decrease was due to the company's growth in profes s ional s ervice revenues of $11, 900 which was partially offs et by a decreas e in s ubscription revenues of $16,700.

Open Text Corp. (NasdaqGS :OTEX) Open T ext Deepens Integration with S AP S olutions acros s E CM S uite with C ontent-E nriched B us ines s P roces s es

Open Text C orp. announced upgrades acros s its solutions portfolio in support of S AP (R ) applications . T he upgrades increase cus tomer value and boos t user productivity by enriching bus ines s proces ses through deeper integration with all types of content. T he integration of bus ines s proces ses with content increases productivity by reducing the need for us ers to s top in the middle of a transaction to look for documents and other supporting information. This new level of integration ens ures that information is ava ilable when and where it is needed, helping the Open T ext E CM S uite contribute to overall bus ines s performance, increase operations excellence, enhance compliance and lower tota l cos t of owners hip (TCO). Open T ext E xtended E CM delivers native integration of content into S AP bus ines s proces ses . P rocurement, as s et management, profes s ional s ervices , quality management, plant maintenance and many others proces s es that rely heavily on documents or s canned images benefit s ignificantly from E xtended E CM. Open T ext's E CM solutions for use with S AP applications leverage two decades of partnership and co-development, and expertis e gained from delivering s olutions to more than 3,000 S AP cus tomer s ites around the world. Open T ext is an S AP software solution partner with multiple products that have achieved S AP certified integration s tatus . Open T ext is als o currently the only E CM vendor with a number of E CM solutions resold by S AP .

Netease.com Inc. (NasdaqGS :NTE S ) Netease.com Inc. R eports Unaudited C ons olidated E arnings R esults for the Third Quarter E nded S eptember 30, 2009

Netease.com Inc. reported unaudited consolidated earnings res ults for the third quarter ended S eptember 30, 2009. F or the quarter, the company's total revenues were CNY 879.4 million (US D 128.8 million), compared to CNY 872.1 million (US D 127.8 million) and CNY 806.6 million (US D 118. 2 million) for the preceding quarter and the third quarter of 2008, respectively. Net profit was CNY 393. 8 million (US D 57.7 million), compared to CNY 468.1 million (US D 68.6 million) and CNY 313.3 million (US D 45.9 million) for the preceding quarter and the third quarter of 2008, respectively. T he company reported bas ic and diluted earnings per American depos ita ry share, or ADS of US D 0.45 and US D 0.44, res pectively for the third quarter of 2009. The company reported bas ic and diluted earnings per ADS of US D 0.53 each for the preceding quarter, and US D 0.36 and US D 0. 35, res pectively for the third quarter of 2008. E arnings per s hare, diluted was CNY 0.12 compared to CNY 0.10 a year ago. Cash flows generated from operating activities were CNY 270.0 million (US D 39.5 million), compared to CNY 544.4 million (US D 79.7 million) and CNY 495.5 million (US D 72.6 million) for the preceding quarter and the third quarter of 2008, respectively. Operating profit was CNY 408,137,590 compared to CNY 466,634,900 a year ago. Net income before tax was CNY 459,340,021 compared to CNY 438,998,031 a year ago. Net income after tax was CNY 393,795,365 compared to CNY 313,310,365 a year ago. P urchas e of property, equipment and software was CNY 91,139,494 compared to CNY 49,664,942 a year ago.

SNAP Interactive, Inc. (OTCBB :S TVI) S NAP Interactive Inc. Unveils L ive C hat for S ingles

S NAP Interactive Inc. announced the launch of its new GP S -bas ed chat feature on its popular Are Y ou Interes ted? iP hone mobile dating application. T he chat functiona lity enables s ingles to communicate with other s ingles through their iP hone in rea l time in their choice of chat rooms , which are broken down by age range and other categories including sexua l orientation. Additionally, s ingles have the ability to identify users that a re nearby and initia te private chat convers ations with a specific user. As a res ult of its new live chat feature, meeting s ingles jus t became a lot eas ier and more fun than it was even a few days ago. S ingles can use their iP hone application and its G P S technology to identify other s ingles that a re nearby and proceed to initia te private chats with those users .

Gravity Co., L td (NasdaqGM:GRVY) G ravity C o. Ltd. R eports Unaudited C ons olidated E arnings R esults for the Third Quarter and Nine Months E nded S eptember 30, 2009

G ravity C o. L td. reported unaudited consolidated earnings res ults for the third quarter and nine months ended S eptember 30, 2009. F or the quarter, the company reported operating income of K R W 1,209 million, income before income tax expens e, minority interes t and equity in los s of rela ted joint venture of K R W 1,323 million and net income of K R W 16 million or K R W 2 per bas ic and diluted s hare on tota l net revenues of K R W 13,798 million compared to the operating income of K R W 241 million, income before income tax expens e, minority interes t and equity in los s of rela ted joint venture of K R W 1,879 million and net income of K R W 869 million or K R W 125 per bas ic and diluted share on tota l net revenues of K R W 12,782 million for the s ame quarter year ago.

VOIS , Inc. (OTCBB :VOIS ) R obert C ohen R es igns from the B oard of V OIS , Inc

V OIS Inc. announced that Mr. R obert C ohen, a member of the B oard of Directors of the company res igned his board s eat.

NeXplore Corporation (OTCPK :NXPC) NeXplore C orporation Announces NeXplore S earch S heds B eta , R ebrands as NeXplore S earch 2

NeXplore C orporation announced that the company's flagship product NeXplore S earch (www.NeXplore.com) has emerged from beta and is now branded NeXplore S earch 2. NeXplore S earch 2 is an interactive and visua lly engaging W eb 2.0 s earch engine optimized for a s uperior end-user experience, multi-media display and socia l s haring integration. F irs t introduced in public beta in J anuary 2008, NeXplore S earch 2 currently averages more than 5 million unique monthly vis itors according to W eb-analytics company Compete.com.

GeoS entric Oyj (HLSE :GEO1V) G eoS entric Oyj to R eport Nine Months , 2009 R esults on November 23, 2009

G eoS entric Oyj announced that they will report nine months , 2009 res ults on November 23, 2009.

CDC Corp. (NasdaqGS :CHIN.A) CDC Corp. R eports Unaudited C onsolidated E arnings R esults for the Third Quarter and Nine Months E nded S eptember 30, 2009

CDC Corp. reported unaudited consolidated earnings res ults for the third quarter and nine months ended S eptember 30, 2009. F or the third quarter of 2009, the company reported revenue of $76.6 million and net income attributable to controlling interes t of $5.6 million, or $0.05 per s hare. T his compares to revenue of $104.1 million and a net los s attributable to controlling interes t of $10.0 million, or a los s per s hare of $0.09 for the third quarter of 2008. T hird quarter operating cash flow was $12. 1 million, compared to $11.2 million in the s econd quarter of 2009, and a 52% increas e from $8. 0 million in the third quarter of 2008. Third quarter adjus ted E B ITDA from continuing operations or adjus ted E B ITDA was $9.0 million compared to adjus ted E B ITDA of $13.7 million in the third quarter of 2008. Operating los s was $2 million agains t operating income of $0. 2 million reported a year ago. Income before income taxes was $8.5 million aga ins t los s before income taxes of $4.8 million reported a year ago. Income from continuing operations was $6.6 million agains t los s from continuing operations of $7.1 million a year ago. Net cash provided by operating activities was $12.1 million agains t $8 million a year ago. P urchase of property, plant & equipment was $2 million aga ins t $1. 5 million a year ago.

The9 L imited (NasdaqGS :NCTY) T he9 Limited to R eport Q3, 2009 R es ults on November 23, 2009

T he9 Limited announced that they will report Q3, 2009 res ults a fter the market closes on November 23, 2009.

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 38 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$34.7 bill ion.

Market C ap (USD m)

0.00.00.00.00.20.40.60.91.01.11.82.02.23.03.84.45.15.45.76.87.67.89.79.910.611.311.513.314.215.815.816.118.019.219.419.724.324.632.933.733.934.938.340.040.141.351.252.653.562.264.470.472.576.476.777.389.994.1121.3162.5189.4201.8207.1208.8217.8220.8222.0251.3271.3280.7338.3381.8599.7730.5871.21001.51185.21204.61551.1

2068.12071.32172.92182.92635.43099.33323.74898.834711.8

1868.9

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

S oc ia l Media V entures Inc .S NM Global Holdings

Dibz International, Inc .China Gatew ay Corporation

The Parent CompanyCLICK ER Inc .

KAB Dis tribution Inc .Betaw ave Corporation

L iveWorld Inc .Unis erve Communications Corp.

Wynds torm CorporationB igs tring Corp.

S NAP Interactive, Inc .Beyond Commerce, Inc .

CornerWorld CorporationDigita lPos t Interactive, Inc .

B right Things plcWorlds .com Inc .

UOMO Media , IncS pectrumDNA , Inc .B roadWebA s ia Inc .

IA S Energy , Inc .is eemedia Inc .

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

L ingo Media CorporationMOKO.mobi Limited

Ex tens ions , Inc .Jumbuck Enterta inment Limited

Quepas a Corp.A cceleriz e New Media , Inc .

Dolphin Digita l Media , Inc .Y nk Korea Inc .

S ocia lw is e, Inc .LookS mart, Ltd.

Northgate Technologies LimitedAQ Interactive, Inc .

Wiz z ard S of tw are CorporationA s s oc iated Media Holdings Inc .

Webz en Inc .Ngi Group Inc .Eolith Co. Ltd.

Digita lTow n, Inc .Grav ity Co. , L td

DXN Holdings BhdNeXplore CorporationS park Netw orks , Inc .

GeoS entric Oy jPNI Digita l Media Inc .

Frogs ter Interactive Pictures AGHanbitS of t, Inc .

GameOn Co Ltd.TheS treet.com, Inc .

Tree.Com, Inc .Cyberplex Inc .

Y D Online Corp.NeuLion Incorporated

Fluid Mus ic Canada, Inc .Actoz S of t Co. , Ltd.

DADA S pAThe9 Limited

GungHo Online Enterta inment, Inc .Myriad Group AG

Openw ave S ys tems Inc .Gamania Digita l Entertainment Co. , Ltd.

G igaMedia Ltd.OAO RBC Information S ys tems

XING AGCDC Corp.

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

S hutterf ly , Inc .United Online Inc .

NEOWIZ Games CorporationV alueClick Inc .

K ings of t Co. Ltd.Chines e Gamer International

Mix i, Inc .G iant Interactive Group, Inc .

Changyou.com LimitedOpen Tex t Corp.

S ohu.com Inc .Perfect World Co. , Ltd.

Gree, Inc .IAC/InterA ctiveCorp.

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. 5.1x last week) (Figure 9). Three companies are trading above 25x revenue – Bigstring Corp. (OTCBB:BSGC) at 48.4x, Dolphin Digital Media, Inc. (OTCBB:DPDM) at 29.3x, and NexPlore Corporation (OTCPK:NXPC) at 27.6x. The median of 1.5x compares with 1.8x last week. Note that we exclude multiples greater than 50x. Thirty-one companies have multiples under 1.5x.

TEV/LTM R evenue (x)

0.0 0.0 0.0 0.1 0.2 0.2 0.2 0.2 0.4 0.4 0.5 0.5 0.5 0.5 0.7 0.7 0.7 0.8 0.8 0.8 0.8 0.9 0.9 1.0 1.1 1.2 1.3 1.3 1.4 1.4 1.5 1.5 1.8 2.1 2.1 2.4 2.5 2.6 3.1 3.1 3.2 3.2 3.54.5 4.8 5.0 5.5 6.1 6.3 6.4 7.1 7.7 7.8

8.79.7 9.9

15.316.216.9

24.0

26.6

29.3

48.4

Average, 5.1

0.0

10.0

20.0

30.0

40.0

50.0

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Chin

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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 11.1x (vs. 11.5x last week). On a geographic basis, the United States has the most companies (38), trading at an average of 6.6x revenue (vs. 6.6x last week) (Figure 11). Ten of the companies are Canadian (average 7.1x revenue).

Average TEV/LTM Revenue - By Exchange

0.00.2

0.40.70.91.41.71.71.8

2.93.24.34.7

5.96.56.97.9

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(x)

# Companies

Average TEV/LTM Revenue - By Country

0.00.7 0.4

0.70.91.71.8

3.23.9

4.74.86.16.6

7.17.9

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1 2 10 38 3 6 2 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 12.8x: The average multiple for the 37 companies with positive EBITDA (and multiples under 100x) is 12.8x LTM EBITDA (vs. 11.6x last week), led by Tencent Holdings Ltd. (SEHK:700) at 46.9x (Figure 12). Fifteen companies have EBITDA multiples under 7x. The median multiple is 12.8x (vs. 11.6x last week).

TEV/LTM EB ITDA (x)

0.6 0.9 1.13.4 4.0 4.1 4.7 4.9 5.2 5.4 6.3 6.7 7.0 7.0 7.5 7.8

9.9 10.0 10.1 10.6 11.6 12.0 12.9 12.9 13.716.1 16.7 17.0

22.3 22.4 23.2

27.9

36.038.7

46.9

A verage, 12.8

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5.0

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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 7.0x EBITDA (Figure 14). Ten of the companies are Canadian (average 19.0x EBITDA).

Average TEV/LTM EBITDA - By Exchange

0.40.61.14.74.74.9

6.36.78.711.612.913.6

16.317.8

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30.5

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5.0

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25.0

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(x)

# Companies

Average TEV/LTM EBITDA - By Country

0.4

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8.0

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

(x)

# Companies

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

P/E (LTM) averages 19.1x: The average multiple for the 34 companies with positive earnings (and multiples under 100x) is 19.1x LTM EPS (vs. 19.4x last week), led by LiveWorld Inc. (OTCPK:LVWD) with a 63.3x multiple (Figure 15). Fourteen companies have P/E multiples under 10x. The median is 12.6x.

P/E LTM (x)

0.0 0.01.8 2.2 2.4 2.6 2.7 3.8 4.1

5.9 7.1 7.3 8.2 8.711.2 11.5 12.6 12.6 13.8

16.7 17.0 17.219.9 20.0

23.2

33.136.3 36.9 38.0

43.6 45.1

60.2 60.363.3

Average, 19.1

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

Gra

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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 23.1x earnings (Figure 17). Ten of the companies are Canadian (average 26.2x EPS).

Average P/E - By Exchange

1.8 0.04.1

5.97.311.111.916.717.0

18.729.8

31.333.134.7

43.6

63.3

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

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(x)

# Companies

Average P/E - By Country

4.15.9

12.513.1

16.7

22.823.1

26.2

33.1

37.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

Japan

Germ

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6 2 10 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

The9 Limited (NasdaqGS:NCTY) 24-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

Shanda Interactive Entertainment Ltd. (NasdaqGS:SNDA) 1-Dec-09 9:30 a.m. EST Q3/09 866-271-6130

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 15.8 0.55 -24.7% 0.0% -3.5% 5.8% 37.5% -31.3%Actoz S oft C o. , L td. K R W A052790 K OS E 121.3 16,700 1.5% 3.7% -15.2% -25.8% 60.6% -53.6%AQ Interactive, Inc. J P Y 3838 T S E 24.3 40,000 -9.1% -18.3% -21.7% -35.5% 14.3% -51.8%Associated Media Holdings Inc. US D AS MH OTC P 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 G C OTC B B 2.0 0.03 -3.1% -8.8% 67.6% 29.2% 19.2% -45.6%B etawave C orporation US D B W AV OTC B B 0.9 0.03 -14.0% -24.9% -62.4% -66.6% -88.4% -89.6%B eyond Commerce, Inc. US D B Y OC OTC B B 3.0 0.05 -10.8% -50.0% -68.5% -94.6% -94.7% -97.2%B right T hings plc GB P AIM:B G T AIM 5.1 0.01 0.0% -14.5% -16.1% -21.7% 29.1% -52.4%B roadW ebAs ia Inc. US D B W B A OTC P K 7.6 0.09 28.6% 200.0% -60.9% -69.8% -91.1% -96.9%C DC C orp. US D CHIN.A NasdaqG S 271.3 2.56 0.8% 3.2% -1.5% 45.5% 181.3% -34.7%C hangyou.com Limited US D CY OU NasdaqG S 1,868.9 33.98 -1.5% -2.8% -9.0% 6.2% NM -29.7%C hina Gateway C orporation US D CG W Y OTC P K 0.0 0.00 -86.7% -86.7% -86.7% 0.0% -80.0% -93.3%C hines e Gamer International TW D GTS M:3083 G T S M 1,185.2 457.00 -0.1% 2.5% 14.8% 21.4% 471.3% -11.9%C LICK E R Inc. US D CLK Z OTC B B 0.4 0.01 -21.4% -31.3% 10.0% 83.3% -93.1% -96.6%C ornerW orld Corporation US D CW R L OTC B B 3.8 0.04 -33.3% -33.3% -33.3% -55.6% -80.0% -91.5%C yberplex Inc. CAD TS X:CX T S X 76.7 1.27 -5.9% -2.3% -17.5% -20.6% 323.3% -36.2%DADA S pA E UR CM:DA C M 162.5 6.85 -3.4% -9.6% 6.3% 16.2% 7.0% -16.4%DXN Holdings B hd MYR DXN K LS E 40.1 0.62 -1.6% -3.9% 16.0% 50.0% 68.5% -10.9%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 4.4 0.05 -15.3% -16.7% -23.1% 127.3% 66.7% -49.5%DigitalT own, Inc. US D DG TW OTC B B 38.3 1.40 16.7% -30.0% 3.7% 7.7% -30.0% -60.0%Dolphin Digital Media, Inc. US D DP DM OTC B B 16.1 0.30 -9.1% -34.8% -17.8% -50.0% -62.5% -64.7%E olith C o. L td. K R W A041060 K OS E 34.9 575.00 0.9% 1.8% -41.6% -18.4% 10.6% -50.4%E xtens ions , Inc. US D E XT I OTC P K 13.3 0.30 20.0% -14.3% 275.0% 100.0% 471.4% -70.3%F luid Mus ic C anada, Inc. CAD TS X:FMN TS X 94.1 1.95 8.3% 2.6% 39.3% 160.0% 413.2% -9.3%F rogs ter Interactive P ictures AG E UR FR G XTR A 62.2 16.57 -8.2% -17.6% 2.3% 107.1% 299.3% -22.9%G amania Digita l E ntertainment Co. , L td. TW D 6180 G T S M 217.8 46.50 0.0% -5.9% -4.1% -20.6% 253.6% -32.4%G ameOn Co L td. J P Y 3812 T S E 70.4 65,100 -4.4% -28.0% -38.1% -28.5% -56.6% -57.2%G eoS entric Oyj E UR GE O1V HLS E 52.6 0.04 -33.3% -20.0% -20.0% -20.0% 33.3% -33.3%G iant Interactive G roup, Inc. US D GA NYS E 1,551.1 6.85 -2.3% -8.9% -9.7% -9.7% 12.5% -28.4%G igaMedia L td. US D G IGM NasdaqG S 220.8 4.05 -7.1% -13.1% -15.6% -33.3% -17.3% -47.6%G ravity Co. , Ltd US D GR VY NasdaqG M 40.0 1.44 -1.4% -12.7% -36.0% 22.0% 121.5% -45.2%G ree, Inc. J P Y T S E :3632 T S E 2,182.9 4, 360 -15.7% -12.8% 1.3% 62.4% NM -23.6%G ungHo Online E ntertainment, Inc. J P Y 3765 OS E 201.8 157,500 -6.8% -27.6% -35.2% 1.6% 55.0% -43.7%HanbitS oft, Inc. K R W A047080 K OS E 64.4 3,510 1.9% -3.8% -9.9% -32.4% 18.8% -47.1%IAC /InterActiveC orp. US D IAC I NasdaqG S 2,635.4 19.97 0.2% 5.1% 4.1% 24.6% 35.0% -6.2%IAS E nergy, Inc. US D IAS A.E OTC B B 7.8 0.11 -7.6% 5.7% -7.5% -57.3% 270.0% -60.4%is eemedia Inc. CAD IE E T S XV 9.7 0.20 17.6% 42.9% 300.0% 122.2% 263.6% -25.9%J umbuck E ntertainment L imited AUD AS X: JMB AS X 14.2 0.34 -1.5% -1.5% -9.5% -25.6% -22.1% -33.0%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% -99.4%K ingsoft C o. L td. HK D 3888 S E HK 1,001.5 7.10 -3.1% -5.5% -18.7% 25.9% 219.8% -25.0%L ingo Media Corporation CAD TS XV :LM TS XV 11.3 0.99 1.0% 5.3% 5.3% -5.7% -16.1% -30.8%L iveW orld Inc. US D LVW D OTC P K 1.0 0.03 -3.1% -24.4% -38.0% -48.3% -38.0% -87.6%LookS mart, L td. US D LOOK NasdaqG M 19.4 1.13 0.9% -13.1% -8.9% -12.4% -35.4% -37.6%Magnitude Information S ys tems Inc. US D MAG Y OTC B B 10.6 0.02 26.3% 166.7% 200.0% 118.2% 41.2% -38.5%Mixi, Inc. J P Y 2121 T S E 1,204.6 699,000.00 3.9% -2.9% 14.6% 53.3% 19.1% -11.6%Modern T imes G roup Mtg AB S E K MTG B OM 3,099.3 327.50 -2.2% -1.7% 7.4% 48.9% 132.3% -3.7%MOK O.mobi L imited AUD MK B AS X 11.5 0.13 38.9% 58.2% 78.6% 89.4% 212.5% 0.0%Myriad G roup AG CHF MYR N S W X 207.1 4.83 3.2% 7.6% 7.3% -11.4% -31.2% -32.1%NE OW IZ G ames Corporation K R W A095660 K OS E 730.5 41,350.00 -0.5% 10.0% 40.6% 17.3% 378.0% -7.9%NetDragon W ebS oft, Inc. HK D 777 S E HK 338.3 4.96 -1.8% -3.3% -27.1% -8.3% 88.6% -30.6%Netease. com Inc. US D NTE S NasdaqG S 4,898.8 37.85 -8.8% 1.2% -11.1% 19.7% 105.7% -22.0%NeuLion Incorporated CAD TS X:NLN T S X 89.9 0.84 16.7% 10.5% -27.6% 5.0% 112.7% -35.4%NeXplore Corporation US D NXP C OTC P K 41.3 0.74 7.2% -7.5% 23.3% 5.7% -41.7% -49.0%Ngi G roup Inc. J P Y 2497 T S E 33.9 24,480.00 -1.5% -14.7% -23.7% -18.4% -55.7% -60.3%Northgate T echnologies L imited INR 590057 B S E 19.7 27.05 -7.2% -27.7% -31.3% -33.6% -51.4% -63.7%Open T ext Corp. US D OTE X NasdaqG S 2,068.1 36.68 -4.1% -6.6% 3.4% 9.2% 37.8% -11.5%Openwave S ys tems Inc. US D OP W V NasdaqG S 208.8 2.50 0.4% -10.1% -11.3% 38.9% 363.0% -20.1%P erfect W orld Co. , Ltd. US D P W R D NasdaqG S 2,172.9 43.67 -3.7% -6.3% 9.3% 114.8% 150.3% -13.5%P NI Digital Media Inc. CAD TS XV :P N T S XV 53.5 1.70 -2.3% 4.3% -4.5% 6.2% 47.8% -20.9%Quepasa C orp. US D QP S A OTC B B 15.8 1.24 -4.6% -8.1% -17.3% 22.8% -44.6% -47.2%OAO R B C Information S ys tems US D R B C I R T S 222.0 1.60 0.0% 6.7% 52.4% 62.4% 6.7% -5.9%S handa Interactive E nterta inment L td. US D S NDA NasdaqG S 3,323.7 49.42 0.6% 6.6% 3.0% -7.3% 130.3% -24.0%S hutterfly, Inc. US D S F LY NasdaqG S 381.8 14.87 -5.6% 1.7% -1.5% 4.2% 117.4% -18.0%S K C ommunications C o. , L td. K R W A066270 K OS E 280.7 8,000.00 9.7% 3.1% -14.9% -35.0% 72.0% -37.7%S NAP Interactive, Inc. US D S TV I OTC B 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 OTC P K 0.0 0.00 0.0% -33.3% -77.8% -60.0% -98.0% -98.0%S ocial Media V entures Inc. US D S MV I OTC P K 0.0 0.01 -24.2% -78.6% -93.2% -25.0% -99.5% -99.9%S ocialwis e, Inc. US D S CLW OTC B B 19.2 0.41 -19.6% -29.3% -31.7% -39.7% -77.8% -78.1%S ohu.com Inc. US D S OHU NasdaqG S 2,071.3 53.86 -5.4% -24.5% -17.6% -6.8% 11.0% -25.5%S park Networks , Inc. US D LOV AME X 51.2 2.49 -4.2% -2.7% 11.2% 11.2% -14.1% -17.0%S pectrumDNA, Inc. US D S P XA OTC B B 6.8 0.14 -6.7% 0.0% -39.1% -56.3% -41.7% -68.9%T encent Holdings Ltd. HK D 700 S E HK 34,711.8 148 -0.1% -0.4% 25.1% 83.5% 248.5% -3.2%T he P arent Company US D K IDS .Q OTC P K 0.2 0.01 0.0% 0.0% -64.5% 600.0% -99.1% -99.2%T he9 L imited US D NC TY NasdaqG S 189.4 7.55 1.9% -6.3% -11.2% -15.6% -41.2% -54.6%T heS treet.com, Inc. US D T S C M NasdaqG M 72.5 2.37 -4.4% -18.0% -2.5% 22.8% -30.1% -36.6%T ree.C om, Inc. US D TR E E NasdaqG M 76.4 7.01 -4.0% -8.1% -19.5% -39.7% 283.1% -46.4%Unis erve Communications Corp. CAD TS XV :US S T S XV 1.1 0.05 42.9% 0.0% 11.1% 0.0% -72.2% -50.0%United Online Inc. US D UNTD NasdaqG S 599.7 7.09 -13.7% -20.0% -3.3% 9.9% 6.9% -25.1%UOMO Media, Inc US D UOMO OTC B B 5.7 0.07 -2.9% -34.0% -56.0% -71.6% -49.2% -93.8%V alueC lick Inc. US D VCLK NasdaqG S 871.2 10.17 -1.3% -20.9% -6.1% -0.8% 64.8% -27.0%V OIS , Inc. US D VOIS OTC B B 9.9 0.01 41.2% 166.7% 100.0% 33.3% 60.0% -47.8%W ebzen Inc. US D W ZE N NasdaqG M 33.7 2.84 -4.1% -2.1% 3.3% -30.4% 242.2% -39.3%W izzard S oftware C orporation US D W ZE AME X 24.6 0.46 -5.6% 12.2% 0.0% -16.4% -54.0% -73.4%W orlds .com Inc. US D W DDD OTC B B 5.4 0.10 0.0% 0.0% -9.1% -33.3% -54.5% -56.5%W ynds torm C orporation US D W Y ND OTC P K 1.8 0.10 0.0% 0.0% 0.0% -80.4% -16.7% -80.4%XING AG E UR O1B C XT R A 251.3 32.55 -0.5% -12.3% 18.4% -2.8% 38.0% -14.3%Y D Online C orp. K R W A052770 K OS E 77.3 6,150.00 -5.7% -22.0% -26.4% -39.7% -4.1% -50.4%Y nk K orea Inc. K R W A023770 K OS E 18.0 4,035.00 -7.9% -12.7% -2.1% -45.5% -27.9% -53.6%

High 8344.4% 5328.6% 5328.6% 50566.7% 25233.3% 0.0%Low -86.7% -99.2% -99.2% -98.6% -99.5% -99.9%

Average 796.6 90.7% 56.0% 58.4% 576.2% 343.4% -45.0%Median -2.2% -6.3% -8.9% -2.8% 14.3% -39.3%

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 15.8 5.0x - - - - - -Actoz S oft C o. , Ltd. G aming S outh K orea K OS E A052790 121.3 0.8x - 3. 4x - 17.2x - 1.9xAQ Interactive, Inc. G aming J apan T S E 3838 24.3 0.0x - 0. 4x - - - 0.4xAs 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 G C 2.0 48.4x - - - - - -B etawave Corpora tion Media United S ta tes OTCB B B W AV 0.9 - - - - - - 0.2xB 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 roadW ebAs ia Inc. S ocial Networking United S ta tes OTCP K B W B A 7.6 - - - - - - -CDC Corp. G aming Hong K ong NasdaqGS CHIN.A 271.3 0.7x 0.8x 10.6x 7.4x - - -Changyou.com Limited G aming C hina NasdaqGS C YOU 1,868.9 6.1x 5.0x 9. 9x 7.8x 12.6x 10.9x 9.8xChina 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 1,185.2 16.2x 16.5x 27.9x 26.7x 36.3x 22.6x 17.4xC L IC K E R Inc. Direct Marketing United S ta tes OTCB B C LK Z 0.4 0.2x - - - - - -C ornerW orld C orporation C ontent United S ta tes OTCB B CW R L 3.8 2.1x - - - - - -C yberplex Inc. Advertis ing C anada T S X T S X:CX 76.7 0.5x 0.5x 4. 9x 3.9x 7.3x 7.6x 2.9xDADA S pA S ocial Networking Italy C M CM:DA 162.5 0.9x 0.8x 6. 7x 5.8x - 16.0x -DXN Holdings B hd S ocial Networking Malays ia K LS E DXN 40.1 0.7x - - - 5.9x - 0.8xDibz 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 4.4 6.4x - - - - - -DigitalT own, Inc. S ocial Networking United S ta tes OTCB B DGTW 38.3 - - - - - - -Dolphin Digital Media , Inc. S ocial Networking United S ta tes OTCB B DP DM 16.1 29.3x 1.1x - - - 1.2x -E olith C o. L td. G aming S outh K orea K OS E A041060 34.9 2.4x - - - - - 3.2xE 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:F MN 94.1 16.9x 16.1x - - - - 8.8xF rogs ter Interactive P ictures AG G aming G ermany XT R A F R G 62.2 6.3x - - - - - 7.6xG 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 - 2.8xG ameOn Co Ltd. G aming J apan T S E 3812 70.4 - - - - 7.1x 7.3x 0.8xG eoS entric Oyj Mobile F inland HLS E GE O1V 52.6 9.7x - - - - - 43.5xG iant Interactive G roup, Inc. G aming C hina NYS E GA 1,551.1 - - - - 1.8x 14.3x 0.3xG igaMedia Ltd. G aming T a iwan NasdaqGS G IGM 220.8 0.8x 0.8x - 3.8x 8.7x 8.1x 1.9xG ravity C o. , Ltd G aming S outh K orea NasdaqGM GR V Y 40.0 - - - - 0.0x - 0.0xG ree, Inc. S ocial Networking J apan T S E T S E : 3632 2,182.9 9.9x 5.8x 17.0x 10.3x 36.9x 20.6x 17.5xG ungHo Online E nterta inment, Inc. Media J apan OS E 3765 201.8 1.4x 1.2x 6. 3x - 43.6x 13.6x 15.0xHanbitS oft, Inc. G aming S outh K orea K OS E A047080 64.4 0.8x - 36.0x - 11.5x - 1.8xIAC /InterActiveCorp. Media United S ta tes NasdaqGS IAC I 2,635.4 0.7x 0.7x 12.0x 5.1x 11.2x 29.2x 1.3xIAS E nergy, Inc. V ideo C anada OTCB B IAS A.E 7.8 - - - - - - -is eemedia Inc. C ontent C anada T S XV IE E 9.7 5.5x - - - - - 19.1xJ umbuck E ntertainment L imited S ocial Networking Aus tra lia AS X AS X:J MB 14.2 0.5x 0.5x 1. 1x 1.2x 4.1x 3.0x 1.3xK AB Dis tribution Inc. C ontent C anada T S X T S X:K AB 0.6 - - - - - - 0.0xK ingsoft C o. Ltd. G aming C hina S E HK 3888 1,001.5 7.1x 5.8x 16.1x 11.2x 19.9x 15.0x 5.6xLingo Media C orpora tion Learning C anada T S XV T S XV : LM 11.3 8.7x - - - - - 20.3xLiveW orld Inc. S ocial Networking United S ta tes OTCP K LV W D 1.0 - - - - 63.3x - 0.4xLookS mart, L td. Direct Marketing United S ta tes NasdaqGM LOOK 19.4 - - - - - - 0.8xMagnitude Information S ys tems Inc. S ocial Networking United S ta tes OTCB B MAGY 10.6 - - - - - - -Mixi, Inc. S ocial Networking J apan T S E 2121 1,204.6 7.7x 6.3x 23.2x 19.6x 60.2x 46.4x 7.7xModern T imes G roup Mtg AB Media S weden OM MT G B 3,099.3 1.8x 1.7x 12.9x 12.6x 16.7x 15.0x -MOK O .mobi L imited S ocial Networking Aus tra lia AS X MK B 11.5 15.3x - - - - - 11.9xMyriad G roup AG Mobile S witzerland S W X MY R N 207.1 3.2x - - - - - -NE OW IZ G ames Corporation G aming S outh K orea K OS E A095660 730.5 3.5x 2.6x 12.9x 9.1x 38.0x 13.1x 19.2xNetDragon W ebS oft, Inc. G aming C hina S E HK 777 338.3 2.1x 1.5x 7. 5x 4.1x 13.8x 11.0x 1.8xNetease.com Inc. G aming C hina NasdaqGS NT E S 4,898.8 - - - - 2.6x 14.2x 0.7xNeuLion Incorporated V ideo C anada T S X T S X:NLN 89.9 3.2x - - - - - 12.5xNeXplore Corporation C ontent United S ta tes OTCP K NXP C 41.3 26.6x - - - - - -Ngi G roup Inc. Media J apan T S E 2497 33.9 - - - - - - 0.7xNorthgate T echnologies L imited Direct Marketing India B S E 590057 19.7 0.4x - - - - 1.1x -Open T ext C orp. C ollabora tion C anada NasdaqGS OT E X 2,068.1 2.6x 2.3x 10.1x 8.4x 45.1x 12.3x -Openwave S ys tems Inc. Mobile United S ta tes NasdaqGS OP W V 208.8 0.5x 0.5x 16.7x 5.2x - 35.2x 2.9xP erfect W orld C o. , Ltd. G aming C hina NasdaqGS P W R D 2,172.9 0.5x 2.6x 0. 9x 4.9x 2.7x 13.3x 1.2xP 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 18.7xQuepasa C orp. S ocial Networking United S ta tes OTCB B QP S A 15.8 - - - - - - -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 3,323.7 - - - - 2.4x 13.8x 0.9xS hutterfly, Inc. Digita l Imaging United S ta tes NasdaqGS S FLY 381.8 1.2x 1.1x 10.0x 5.7x - 88.0x 2.3xS K Communications Co. , Ltd. S earch S outh K orea K OS E A066270 280.7 1.5x - 22.4x - - - -S NAP Interactive, Inc. Dating United S ta tes OTCB B S T V I 2.2 0.2x - 0. 6x - 3.8x - 1.2xS 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 19.2 - - - - - - -S ohu.com Inc. G aming C hina NasdaqGS S OHU 2,071.3 3.1x 2.6x 7. 0x 5.9x 12.6x 13.9x 3.8xS park Networks , Inc. S ocial Networking United S ta tes AME X LOV 51.2 1.0x - 4. 7x - 17.0x - 23.1xS pectrumDNA, Inc. Media United S ta tes OTCB B S P XA 6.8 - - - - - - 68.0xT encent Holdings Ltd. P orta l C hina S E HK 700 34,711.8 24.0x 15.8x 46.9x 30.8x 60.3x 40.5x 26.8xT 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 189.4 - - - - 2.2x - 0.1xT heS treet.com, Inc. Media United S ta tes NasdaqGM TS CM 72.5 0.1x 0.1x 4. 1x - - - 0.9xT ree.C om, Inc. P orta l United S ta tes NasdaqGM T R E E 76.4 0.2x 0.2x 5. 2x 6.1x - 88.2x 1.1xUniserve C ommunications Corp. S ocial Networking C anada T S XV T S XV :US S 1.1 0.4x - 38.7x - - - -United Online Inc. Media United S ta tes NasdaqGS UNTD 599.7 0.9x 0.9x 4. 0x 3.5x - 5.3x -UOMO Media , Inc Media C anada OTCB B UOMO 5.7 7.8x - - - - - -V a lueC lick Inc. Media United S ta tes NasdaqGS V CLK 871.2 1.3x 1.4x 5. 4x 5.3x - 16.6x 4.7xV O IS , Inc. S ocial Networking United S ta tes OTCB B V OIS 9.9 - - - - - - 63.2xW ebzen Inc. G aming S outh K orea NasdaqGM W ZE N 33.7 - - - - 0.0x - 0.0xW izzard S oftware Corporation P odcas ting United S ta tes AME X W ZE 24.6 4.8x - - - - - -W orlds .com Inc. C ontent United S ta tes OTCB B W DDD 5.4 - - - - 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 251.3 3.1x 2.4x 11.6x 6.7x 33.1x 16.2x 7.1xY D Online Corp. G aming S outh K orea K OS E A052770 77.3 1.5x 1.1x 7. 0x 4.1x 8.2x 5.9x 2.6xY nk K orea Inc. G aming S outh K orea K OS E A023770 18.0 1.4x - 13.7x - - - 0.9x

High 34,711.8 48.4x 16.5x 46.9x 30.8x 63.3x 88.2x 68.0xLow 0.0 0.0x 0.1x 0. 4x 1.2x 0.0x 1.1x 0.0x

Average 796.6 5.1x 3.1x 12.1x 8.6x 19.1x 19.4x 8.9xMedian 40.1 1.5x 1.4x 9. 9x 6.0x 12.6x 13.8x 2.6x

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 C hina 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 %

OT CB 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%

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

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

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

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

S E HK 3 OS E 302.3 C M 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 C M 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 OT CB B 230.9 S W X 92.0 NasdaqGM 82.4 XTR A 12.5 K OS E 9.6%

GT S M 2 C M 165.4 HLS E 65.9 K LS E 77.1 K LS E 11.1 Nas daqG M 7.7%

S W X 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 W X 92.0 NasdaqGM 55.9 S W X 40.0 AS X 4.5 S W X 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 OT CNO -1.1 AME X -31.8%

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

OS E 1 OT CP 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 OT CB 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 OT CB B 2.3 OT CP K -34.1 OTCNO -50.6%

K LS E 1 AIM 6.0 OT CP K 6.0 OT CNO 2.3 B S E -41.4 AIM NA

OT CNO 1 OT CNO 0.1 OT CNO 0.1 AIM 0.0 OT CB 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 RockYou US A 50.0 50.0

Playfire UK 2.1 2. 1

US A 43.0 43.0

S ezmi US A 25.0 25.0

Millennial Media US A 16.0 16.0

Zynga US A 15.0 15.0

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

Placecas t US A 5.0 5. 0

AppNexus US A 5.0 5. 0

Altruik US A 4.7 4. 7

C redit K arma US A 2.5 2. 5

B lekko US A 2.5 2. 5

Adfonic UK 0.6 0. 6

S coopler US A 0.5 0. 5

Nov-09 Total 1.1 52.3 29.0 67.0 52.5 201.9

Grand Total 6.2 2.0 110.1 137.7 162.3 77.6 110.0 606.0

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

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

Adfonic UK www.adfonic.com Adfonic Ltd. operates as a W eb-based marketplace for advertis ing on mobile phones . T he company provides tools that enable advertis ers to build, execute, monitor, and control campaigns ; and publis hers to monetize their mobile s ites and applications . It s erves advertis ers and agencies , as well as publis hers and developers in Aus tra lia , B runei, C anada, C os ta R ica , India , the United Arab E mirates , and the United K ingdom. T he company was founded in 2008 and is headquartered in London, the United K ingdom. It has operations in F rance, S pain, and the United S tates .

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 was formerly known as E vernote, LLC and changed its name to E vernote C orporation 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 .

Imeem United S ta tes www. imeem.com Imeem, Inc. operates as an online community for mus icians , directors , photographers , and groups . It enables users to create audio, video, and photo playlis ts ; s hare their favorites ; dis cover new content; track their films ; create and view playlis ts of their favorite shots ; track their photos ; s hare a lbums with their friends ; hold group dis cus s ions ; change their profile info; upload new photo a lbums ; pos t new videos , or mus ic; and write blogs , or comments . T he company was founded in 2004 is bas ed in S an F rancis co, C a lifornia . As of November 18, 2009, Imeem, Inc. operates as a s ubs idiary of MyS pace, Inc.

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 T he Motley F ool was founded in 1994 and is based 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.

Placecas t United S ta tes www.1020.com 1020, Inc. develops online advertis ing solutions . It develops and owns P lacecas t Media , an online advertis ing s olution to ta rget highly s ought-a fter audiences us ing location-based information acros s the W eb, mobile , and W i-F i. Its platform also manages a publis her's W eb and mobile inventory, a s well as s erves targeted ads and mes s ages into outgoing emails . T he company s erves companies in marketing, branding, advertis ing, and P R indus tries . 1020, Inc. was founded in 2005 and is based in S an F rancis co, C alifornia with an additional office in New Y ork, New Y ork.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 .

Playfire UK www.playfire. com P layfire is a s ocia l networking application des igned for video gamers . It a llows users to crea te profiles , track favorite games , be notified of new developments . P layfire was founded in 2007 by K ieran O ’Neill, S eb Hayes & B en P hillips .

PlayFish UK www.playfis h.com 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. As of November 9, 2009, P layfis h L imited operates as a s ubs idiary of E lectronic Arts Nederland B .V .

Prosper.com United S ta tes www.prosper. com P rosper is a people-to-people lending marketplace that attempts to make consumer lending more financia lly and socia lly rewarding. At P rosper, people lis t and bid on loans us ing P rosper’s online auction platform. P ros pective lenders s et their minimum interes t ra te and bid in increments of $50 to $25,000 on loan lis tings they s elect. P rosper generates revenue by collecting a one-time 1% or 2% fee on funded loans from borrowers , and as s es s es a 0.5% or 1.0% annual loan s ervicing fee to lenders .

Qunar.com China www.qunar. com Qunar. com, Inc. operates a multi-language price comparis on s earch engine. T he company’s s earch engine s earches C hinese-language travel W eb s ites to provide real-time pricing information and other des criptive details from airlines and hotels s ervicing China ; and a llows consumers to compare prices for a ir tickets , hotels , car rentals , and tour packages . It s erves online travel indus try. T he company was founded in 2005 and is based in B eijing, C hina .

RockYou United S ta tes www. rockyou.com Netpickle maker of R ockY ou (originally named R ockMyS pace) crea tes and dis tributes s elf-expres s ion widgets . T he widgets can be used to enhance the look and feel of blogs , persona l webs ites and personal pages on socia l networks s uch as F acebook, MyS pace and B ebo. R ockY ou has over 10 million regis tered users and gets over 150 million widget views from over 200 countries per day.

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 .

SocialMedia United S ta tes www.socia lmedia . com S ocia l Media Networks , Inc. operates as a s ocia l media advertis ing network. T he company’s S ocia lmedia advertis ing platform enables advertis ers to reach various users through its network; and developers of s ocia l media applica tions to monetize their traffic from advertis ing. T he company was founded in 2007 and is based in P alo Alto, C a lifornia with additional offices in P alo Alto and S an F rancis co, C alifornia .

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.

Zynga United S ta tes www.zynga.com Zynga, Inc. operates as an online socia l gaming company. It offers cas ino games , word games , boa rd games , role playing games , and pa rty games , as well as casual online games . The company was founded in 2007 and is based in S an F rancis co, C a lifornia .

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

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09 11 24 Web 2.0 Weekly

Technology

Transcript of 09 11 24 Web 2.0 Weekly