Web 2.0 Weekly - April 27, 2010
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Web 2.0 Weekly
Financing on pace for record month
Copyright 2000-2010, Mackie Research Capital Corporation, All rights reserved
April 27, 2010
David Shore, CFA, MBA [email protected]
Damian Wojcichowsky, CFA 416.860.7652
This report has been created by Analysts that are employed by Mackie Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report.www.mackieresearch.com
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Key Developments (past week)
Deals (M&A, Finance) Salesforce.com acquired crowd-sourced personal contact service, Jigsaw, for $142
mm. Warner Bros. acquired gaming company, Turbine, for $160 mm. Diapers.com, internet retailer, received $20 mm in funding (lifetime financing total = $59
mm).
Financial Results/Guidance
Points International Ltd. (TSX:PTS) revised 2010 revenue guidance. The companyexpects 2010 revenue in the range of $85-$95 mm (following on a prior guidanceincrease from $60-$70 mm to $75-$85 mm).
CDC Corp. (NasdaqGS:CHIN.A) announced preliminary Q1/10 application sales toincrease by approximately 14% to $8.2 mm from $7.2 mm in Q1/09. Total Non-GAAPrecurring revenue (which CDC defines as Non-GAAP maintenance plus SaaS revenue)
is expected to increase by ~13% to $27.4 mm in Q1/10 from $24.2 mm in Q1/09. Firstquarter 2010 license revenue is expected to be $7.9 mm, and Total Contract Value fornew SaaS contracts secured in the quarter is expected to be about $300,000.
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Key Developments cont.
Financial Results cont.
Company
Fiscal Period
(ended) Revenue (current/prior year) Y/Y % EPS (current/prior year) Y/Y %Modern Times Group Mtg AB (OM:MTG B) Q1/10 (Mar. 2010) SEK 3,524mm (SEK 3,336mm) 5.6% SEK 4.60 (SEK 2.19) 110.0%
Multipl ied Media Corporation (TSXV:MMC) F2009 (Dec. 2009) $288,537 ($69,768) 313.6% ($0.04) (loss $0.011) NM
The New York Times Company (NYSE:NYT) Q1/10 (Mar. 2010) $587.9mm ($607.1mm) -3.2% $0.08 (loss $0.52) NM
Frogster Interactive Pictures AG (XTRA:FRG) F2009 (Dec. 2009) 14.7mm NA 0.96 per share NA
Sohu.com Inc. (NasdaqGS:SOHU) Q1/10 (Mar. 2010) $129.5mm ($115.6mm) 12.0% $0.73 NA
Changyou.com Limited (NasdaqGS:CYOU) Q1/10 (Mar. 2010) $72.0mm ($61.6mm) 16.9% $0.80 per ADS ($0.72 per ADS) 11.1%
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Public Company Data
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Aggregate Public Data
Web 2.0 Public Companies Total Median Max Min# Companies 99 - - -
Market Cap (US$ mm) 86,002.5 80.2 38,752.5 1.7
Revenue (US$ mm) 22,695.3 60.4 3,257.4 0.0
1 Year revenue growth 4.8% 1178.9% -91.4%
EBITDA as % of revenue - 11.4% 67.7% -91.9%
Net cash (US$ mm) 8,270.2 1.2 1,754.9 -732.7TEV/Revenue - 2.0x 45.2x 0.1x
TEV/EBITDA - 9.6x 46.2x 0.1x
P/E - 14.8x 76.6x 0.0x
Relative to 52 week high -29.5% 5.6% -98.1%
Source: CapitalIQ
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Public Company Distribution
27
16
10
76
5
3 3 3 32 2 2 2
1 1 1 1 1 1 1 1
0
5
10
15
20
25
30
Gaming
SocialNetworking
Media
Diversified
Marketing
Mobile
Infrastructure
SMS/Voice
Enterprise
Advertising
InternetRetail
VirtualWorld
Dating
Music
Ve
rticalCommunities
Collaboration
Podcasting
Learning
Video
Search
Payment
FinancialServices
By Sector By Country
0
5
10
15
20
25
30
35
40
45
UnitedStates
Canada
China
SouthKorea
Japan
Taiwan
Germany
Australia
Un
itedKingdom
HongKong
Poland
Russia
Finland
Sweden
Malaysia
India
Italy
Switzerland
Israel
Source: CapitalIQ
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Valuation Dashboard 1 Week
Rising
58%
Falling
31%
Flat
11%
Rising
65%
Falling31%
Flat4%
Rising
73%
Falling
25%
Flat
2%
Market Cap
Rising
73%
Falling27%
Flat
0%
EV/Revenue
EV/EBITDA P/E
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Median EV/Revenue
0.0x
0.5x
1.0x
1.5x
2.0x
2.5x
3.0x
3.5x
4.0x
4.5x
5.0x
3/9/2009
3/16/2009
3/23/2009
3/30/2009
4/6/2009
4/13/2009
4/20/2009
4/27/2009
5/4/2009
5/11/2009
5/18/2009
5/25/2009
6/1/2009
6/8/2009
6/15/2009
6/22/2009
6/29/2009
7/6/2009
7/13/2009
7/20/2009
7/27/2009
8/3/2009
8/10/2009
8/17/2009
8/24/2009
8/31/2009
9/7/2009
9/14/2009
9/21/2009
9/28/2009
10/5/2009
10/12/2009
10/19/2009
10/26/2009
11/2/2009
11/9/2009
11/16/2009
11/23/2009
11/30/2009
12/7/2009
12/14/2009
12/21/2009
12/28/2009
1/4/2010
1/11/2010
1/18/2010
1/25/2010
2/1/2010
2/8/2010
2/15/2010
2/22/2010
3/1/2010
3/8/2010
3/15/2010
3/22/2010
3/29/2010
4/5/2010
4/12/2010
4/19/2010
4/26/2010
373838393939404039424243444545444546484949485051545558585860636363626363676867697168646969697172747776797777787779818381
Multiple(x)
Median Long-term average
# companies
Source: CapitalIQ
Revenue multiplesrecovering but
below LT Average
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Median EV/EBITDA
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
3/9/2009
3/16/2009
3/23/2009
3/30/2009
4/6/2009
4/13/2009
4/20/2009
4/27/2009
5/4/2009
5/11/2009
5/18/2009
5/25/2009
6/1/2009
6/8/2009
6/15/2009
6/22/2009
6/29/2009
7/6/2009
7/13/2009
7/20/2009
7/27/2009
8/3/2009
8/10/2009
8/17/2009
8/24/2009
8/31/2009
9/7/2009
9/14/2009
9/21/2009
9/28/2009
10/5/2009
10/12/2009
10/19/2009
10/26/2009
11/2/2009
11/9/2009
11/16/2009
11/23/2009
11/30/2009
12/7/2009
12/14/2009
12/21/2009
12/28/2009
1/4/2010
1/11/2010
1/18/2010
1/25/2010
2/1/2010
2/8/2010
2/15/2010
2/22/2010
3/1/2010
3/8/2010
3/15/2010
3/22/2010
3/29/2010
4/5/2010
4/12/2010
4/19/2010
4/26/2010
212020222223232222242423232424262626262525262628282930333436393738373839373737404139404141404142454443494948505050494846
Multiple(x)
Median Long-term average
# companies
Source: CapitalIQ
EV/EBITDA multiplesremain depressedbelow LT average
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Median P/E
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
30.0x
3/9/2009
3/16/2009
3/23/2009
3/30/2009
4/6/2009
4/13/2009
4/20/2009
4/27/2009
5/4/2009
5/11/2009
5/18/2009
5/25/2009
6/1/2009
6/8/2009
6/15/2009
6/22/2009
6/29/2009
7/6/2009
7/13/2009
7/20/2009
7/27/2009
8/3/2009
8/10/2009
8/17/2009
8/24/2009
8/31/2009
9/7/2009
9/14/2009
9/21/2009
9/28/2009
10/5/2009
10/12/2009
10/19/2009
10/26/2009
11/2/2009
11/9/2009
11/16/2009
11/23/2009
11/30/2009
12/7/2009
12/14/2009
12/21/2009
12/28/2009
1/4/2010
1/11/2010
1/18/2010
1/25/2010
2/1/2010
2/8/2010
2/15/2010
2/22/2010
3/1/2010
3/8/2010
3/15/2010
3/22/2010
3/29/2010
4/5/2010
4/12/2010
4/19/2010
4/26/2010
171919191818191919202019181919202021252425252526262729302930313032343536363636373839373737363536323130333333333333333231
Multiple(x)
Median Long-term average
# companies
Source: CapitalIQ
P/E multiples alsobelow LT average
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Average Valuation by Sector
-
5.0
10.0
15.0
20.0
25.0
Infrastructure
Diversified
SMS/Voice
SocialNetworking
Music
VerticalCommunities
Mobile
Marketing
Learning
Gaming
Podcasting
Collaboration
Search
Advertising
Video
InternetRetail
Enterprise
Dating
Media
FinancialServices
VirtualWorld
2 6 3 7 2 1 4 5 1 21 1 1 1 3 1 2 3 2 9 1 1# Companies
-
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
Search
Enterprise
Diversified
Mobile
Media
Collaboration
InternetRetail
SocialNetworking
Gaming
FinancialServices
Marketing
Dating
Advertising
1 2 5 1 6 1 2 5 13 1 3 1 1# Companies
EV/Revenue EV/EBITDA
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EV/Revenue Ranking
0.20.20.40.40.40.50.50.50.60.60.70.70.70.80.80.80.90.91.0 1.0 1.0 1.0 1.2 1.2 1.2 1.3 1.3 1.3 1.4 1.4 1.5 1.6 1.6 1.7
1.92.02.02.22.22.32.32.32.42.42.6 2.72.93.03.13.23.2
3.4 3.54.34.8
5.0 5.15.55.75.8
6.46.67.8
9.110.3
12.012.013.4
15.4
18.119.5
23.3
30.7
44.145.2
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
NgiGroupInc.
CyberplexInc.
JumbuckEntertainmentLimited
R
ealNetworksInc.
Tree.Com,Inc.
GameOnCoLtd.
Ac
tozSoftCo.,Ltd.
UniserveCommunicationsCorp.
GigaMediaLtd.
GluMobile,Inc.
OpenwaveSystemsInc.
NorthgateTec
hnologiesLimited
DADASpA
Points
InternationalLtd.
InternetGroupSA
IAC
/InterActiveCorp.
AOL,Inc.
CDCCorp.
U
nitedOnline,Inc.
CornerW
orldCorporation
TheNewYorkTimesCompany
Th
eStreet.com,Inc.
BeyondCommerce,Inc.
OAORBCInformationSystems
AQInteractive,Inc.
HutchisonTelecom
municationsHong
HanbitSoft,Inc.
infoGROUP,Inc.
GamaniaDigitalEntertainmentCo.,Ltd.
Spa
rkNetworks,Inc.
YDOnlineCorp.
ValueClick,Inc.
NetDragonWebSoft,Inc.
YnkKoreaInc.
ScoreMediaInc.
Shutterfly,Inc.
SNA
PInteractive,Inc.
PN
IDigitalMediaInc.
OrientedMediaGroupBerhad
XINGAG
VeltiPlc
UOMOMedia,Inc
ModernTim
esGroupMtgAB
NeuLionIncorporated
WebzenInc.
GungHoOnlineEntertainment,Inc.
Sohu.comInc.
SKCommunicationsCo.,Ltd.
MyriadGroupAG
OpenTextCorp.
NEOWIZG
amesCorporation
WizzardSoftw
areCorporation
iseemediaInc.
TaleoCorp.
LingoM
ediaCorporation
DigitalPostInteractive,Inc.
Web
MediaBrandsInc
KingsoftCorporationLimited
Accelerize
NewMedia,Inc.
Chan
gyou.comLimited
Un
ilavaCorporation
Mixi,Inc.
FrogsterIntera
ctivePicturesAG
FluidM
usicCanada,Inc.
Gree,Inc.
T
ransGaming,Inc.
HUGHE
STelematics,Inc.
ChineseGamerInternational
GeoSentricOyj
PaidInc.
MOKO.mobiLimited
TencentHoldingsLtd.
BrightThingsplc
SpectrumDNA,Inc.
NeX
ploreCorporation
Source: CapitalIQ
NeXplore has highestrevenue multiple at 45.2x
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EV/EBITDA Ranking
1.9 2.0 2.7 2.74.7 5.1 5.7 5.7
6.7 6.9 6.9 7.0 7.6 7.88.0 8.4 8.4 8.9
9.3 9.8 10.111.111.911.912.0
12.3 13.213.9 14.614.9
15.116.3 17.2
17.5
21.7
24.7
32.4
35.1
45.5 46.2
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
CyberplexInc.
GameOnCoLtd.
AOL,Inc.
ActozSoftCo.,Ltd.
UnitedOnline,Inc.
HutchisonTelecomm
unicationsHongKongHoldings
Ltd.
ValueClick,Inc.
T
heNewYorkTimesCompany
Sohu.comInc.
SparkNetworks,Inc.
DADASpA
YDOnlineCorp.
infoGROUP,Inc.
GamaniaDigitalEntertainmentCo.,Ltd.
CDCCorp.
XINGAG
NetDragonWebSoft,Inc.
PNIDigitalMediaInc.
Changyou.comLimited
Tree.Com,Inc.
U
niserveCommunicationsCorp.
VeltiPlc
ScoreMediaInc.
OpenTextCorp.
NEOWIZGamesCorporation
Gun
gHoOnlineEntertainment,Inc.
KingsoftCorporationLimited
IAC/InterActiveCorp.
HanbitSoft,Inc.
Shutterfly,Inc.
OpenwaveSystemsInc.
YnkKoreaInc.
ModernTimesGroupMtgAB
Gree,Inc.
Mixi,Inc.
ChineseGamerInternational
TaleoCorp.
TheStreet.com,Inc.
TencentHoldingsLtd.
SKCommunicationsCo.,Ltd.
Excluding EV/EBITDA > 100xSource: CapitalIQ
SK Communications leadsthe group at 46.2x
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P/E Ranking
2.0 2.1 2.64.4 5.7
6.6 8.510.6 11.0 11.7 12.1 12.4
14.3 14.8 15.418.5 18.9 20.6
22.6 24.525.7
32.034.5 35.3
40.9
57.7 58.9
69.3
76.6
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
Shanda
InteractiveEntertainmentLtd.
GiantInteractiveGroup,Inc.
Netease.comInc.
JumbuckEntertainmentLimited
CyberplexInc.
GigaMediaLtd.
YDOnlineCorp.
DADASpA
UnitedOnline,Inc.
GameOnCoLtd.
AOL,Inc.
Changyou.comLimited
ValueClick,Inc.
Sohu.comInc.
HutchisonTelecomm
unicationsHongKongHoldings
Ltd.
KingsoftCorporationLimited
T
heNewYorkTimesCompany
CDCCorp.
VeltiPlc
GamaniaDigitalEntertainmentCo.,Ltd.
NetDragonWebSoft,Inc.
ChineseGamerInternational
Gree,Inc.
NEOWIZGamesCorporation
OpenTextCorp.
Mixi,Inc.
TencentHoldingsLtd.
Gun
gHoOnlineEntertainment,Inc.
HanbitSoft,Inc.
Source: CapitalIQ
HanbitSoft has thehighest P/E at 76.6x
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Total Market Capitalization - $80 BN
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
5/4/2009
5/11/2009
5/18/2009
5/25/2009
6/1/2009
6/8/2009
6/15/2009
6/22/2009
6/29/2009
7/6/2009
7/13/2009
7/20/2009
7/27/2009
8/3/2009
8/10/2009
8/17/2009
8/24/2009
8/31/2009
9/7/2009
9/14/2009
9/21/2009
9/28/2009
10/5/2009
10/12/2009
10/19/2009
10/26/2009
11/2/2009
11/9/2009
11/16/2009
11/23/2009
11/30/2009
12/7/2009
12/14/2009
12/21/2009
12/28/2009
1/4/2010
1/11/2010
1/18/2010
1/25/2010
2/1/2010
2/8/2010
2/15/2010
2/22/2010
3/1/2010
3/8/2010
3/15/2010
3/22/2010
3/29/2010
4/5/2010
4/12/2010
4/19/2010
4/26/2010
94 95 95 94 95 95 95 95 95 95 95 95 95 95 95 95 95 95 94 95 95 95 95 95 95 95 95 95 96 96 98 98 98 98 98 98 98 98 98 98 98 98 99 99 99 99 99 99 99 99 99 99
(US$m)
# companies
Source: CapitalIQ
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Total Market Cap by Sector
-
5,000.0
10,000.0
15,000.0
20,000.0
25,000.0
30,000.0
35,000.0
40,000.0
45,000.0
50,000.0
Diversified
Ga
ming
M
edia
SocialNetwo
rking
Collaboration
Mark
eting
Enterprise
InternetRetail
Search
M
obile
SMS/Voice
FinancialServices
M
usic
Video
D
ating
VirtualWorld
Advertising
VerticalCommu
nities
Pay
ment
Infrastructure
Podca
sting
Lea
rning
7 27 10 16 1 6 3 2 1 5 3 1 2 1 2 2 3 1 1 3 1 1# Companies
27 Gaming companies totalingover $17b in market cap
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Market Cap Ranking
0
1,000
2,000
3,000
4,000
5,000
6,000
BroadWebAsiaInc.
MobileDataCorp.
UOMOMedia,Inc
CornerWorldCorporation
UniserveCommunicationsCorp.
BeyondCommerce,Inc.
En2GoInternational,Inc.
Kiwibox.Com,Inc.
DigitalPostInteractive,Inc.
Worlds.comInc.
Ke
ntInternationalHoldingsInc.
O
rientedMediaGroupBerhad
SpectrumDNA,Inc.
RealValueEstates,Inc.
BrightThingsplc
LingoMediaCorporation
SaharaMediaHoldings,Inc.
SNAPInteractive,Inc.
iseemediaInc.
MOKO.mobiLimited
Ju
mbuckEntertainmentLimited
IASEnergy,Inc.
VOIS,Inc.
InternetGroupSA
No
rthgateTechnologiesLimited
WizzardSoftwareCorporation
NeXploreCorporation
AccelerizeNewMedia,Inc.
LookSmart,Ltd.
DolphinDigitalMedia,Inc.
YnkKoreaInc.
AsknetAG
Socialwise,Inc.
MultipliedMediaCorporation
WebMediaBrandsInc
CyberplexInc.
TransGaming,Inc.
GluMobile,Inc.
UnilavaCorporation
DigitalTown,Inc.
GeoSentricOyj
QuepasaCorp.
PNIDigitalMediaInc.
GravityCo.,Ltd
ScoreMediaInc.
FrogsterInteractivePicturesAG
SparkNetworks,Inc.
NgiGroupInc.
Moggle,Inc
NeuLionIncorporated
HanbitSoft,Inc.
YDOnlineCorp.
PaidInc.
PointsInternationalLtd.
DADASpA
FluidMusicCanada,Inc.
Tree.Com,Inc.
AQInteractive,Inc.
GameOnCoLtd.
ActozSoftCo.,Ltd.
TheStreet.com,Inc.
WebzenInc.
GigaMediaLtd.
The9Limited
XINGAG
MyriadGroupAG
VeltiPlc
OA
ORBCInformationSystems
OpenwaveSystemsInc.
GamaniaDigitalEntertainmentCo.,Ltd.
NetDragonWebSoft,Inc.
CDCCorp.
HUGHESTelematics,Inc.
Gung
HoOnlineEntertainment,Inc.
infoGROUP,Inc.
RealNetworksInc.
SKCommunicationsCo.,Ltd.
Shutterfly,Inc.
NEOWIZGamesCorporation
UnitedOnline,Inc.
ValueClick,Inc.
KingsoftCorporationLimited
HutchisonTelecommunicationsHongKongHoldings
ChineseGamerInternational
Mixi,Inc.
TaleoCorp.
Th
eNewYorkTimesCompany
PerfectWorldCo.,Ltd.
GiantInteractiveGroup,Inc.
Changyou.comLimited
Sohu.comInc.
OpenTextCorp.
IAC/InterActiveCorp.
Gree,Inc.
AOL,Inc.
ShandaInteractiveEntertainmentLtd.
ModernTimesGroupMtgAB
Netease.comInc.
TencentHoldingsLtd.
Source: CapitalIQ
Tencents $39 bn market capdominates group
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Price Performance 1 week
Rising53%
Flat13%
Falling
34%
Price Momentum Positive momentum, with 66% of stocks
rising or flat over past week.
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Average Price Performance 1 Week, By Sector
28.0%
16.6%
13.2%12.8%
7.7%6.3%
4.9%3.6% 3.5% 3.4% 2.5% 2.4% 1.3% 0.9%
-0.3% -0.8% -1.5%-1.8% -4.3% -4.7%
-6.1%
-12.3%-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
Dating
Search
S
MS/Voice
Enterprise
Video
Vertical
Co
mmunities
InternetRetail
Gaming
P
odcasting
Payment
Marketing
Social
Networking
Co
llaboration
Financial
Services
VirtualWorld
Media
Music
Mobile
Infrastructure
Diversified
Advertising
Learning
# companies
Source: CapitalIQ
Dating showsbiggest gains
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Price Performance 1 Week
-60.0%
-40.0%
-20.0%
0.0%
20.0%
40.0%
60.0%
80.0%
BWBA
NXPC
SHHD
BYOC
SPXA
TSXV:MMC
TSXV:LM
A047080
IASC.A
KOSE:A069
TSX:CX
PAYD
UNLA
LOV
DB:M0C
NYT
CM:DA
ACLZ
RBCI
OMEDIA
TSX:FMN
DGTW777
3812
A023770
MKB
A095660
NCTY
2497
KNTHIACI
FRG
VCLKGA
KIWB
GEO1V
MYRN
CWRL
AIM:BGT
ETGI
RVLU
TSX:SCR
UOMO
WDDD
WSE:IGR
TSXV:TNG
ASX:JMB
O1BC
PWRD
CHIN.A
MBYL
TREE
OTEX
590057
TLEO
SEHK:215
SNDA
IUSA
A052770
GRVY
2121
XTRA:A5A
RNWK
3888
GIGM
SCLW
WZE
TSE:3632
OPWV
TSXV:PN
AOL
SFLY
UNTD700
MTGB
SOHU
DPDM
WEBM
NTES
CYOU
GTSM:3083
TSX:NLNVEL
QPSAIEE
6180
TSCM
DGLP
A052790
LOOK
3765
A066270
3838
VOIS
TSX:PTS
HUTC
GLUU
TSXV:USS
STVI
Source: CapitalIQ
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Price Performance (Top 10)
1 Month
0%
50%
100%
150%
200%
250%
300%
IASEnergy,Inc.
Beyond
Commerce,Inc.
AQInteractive,
Inc.
DigitalTown,Inc.
GluMobile,Inc.
Uniserve
Communications
Corp.
VOIS,Inc.
InternetGroup
SA
GungHoOnline
Entertainment,
Inc.
HUGHES
Telematics,Inc.
3 Month
0%
500%
1000%
1500%
2000%
2500%
3000%
3500%
OAORBC
Information
Systems
DigitalTown,
Inc.
IASEnergy,
Inc.
Beyond
Commerce,
Inc.
Unilava
Corporation
SNAP
Interactive,
Inc.
NgiGroup
Inc.
Oriented
Media
Group
Berhad
AQ
Interactive,
Inc.
Shutterfly,
Inc.
6 Month
0%
500%
1000%
1500%
2000%
2500%
3000%
3500%
OAORBC
Information
Systems
AQInteractive,
Inc.
QuepasaCorp.
Uniserve
Communications
Corp.
VOIS,Inc.
SK
Communications
Co.,Ltd.
OrientedMedia
GroupBerhad
SNAP
Interactive,Inc.
VeltiPlc
NgiGroupInc.
1 Year
0%
1000%
2000%
3000%
4000%
5000%
6000%
7000%
OAORBC
Information
Systems
QuepasaCorp.
TransGaming,
Inc.
VOIS,Inc.
AQInteractive,
Inc.
Uniserve
Communications
Corp.
DigitalPost
Interactive,Inc.
FluidMusic
Canada,Inc.
CDCCorp.
GluMobile,Inc.
Source: CapitalIQ
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Price Performance (Bottom 10)
1 Week
-60.0%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
WebzenInc.
IASEnergy,
Inc.
HanbitSoft,Inc.
LingoMedia
Corporation
Multiplied
Media
Corporation
SpectrumDNA,
Inc.
Beyond
Commerce,
Inc.
SaharaMedia
Holdings,Inc.
NeXplore
Corporation
BroadWebAsia
Inc.
1 Month
-60.0%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
LingoMedia
Corporation
MobileData
Corp.
Multiplied
Media
Corporation
UOMOMedia,
Inc
SpectrumDNA,
Inc.
SaharaMedia
Holdings,Inc.
NeXplore
Corporation
BroadWebAsia
Inc.
En2Go
International,
Inc.
CornerWorld
Corporation
6 Month
-100.0%
-90.0%
-80.0%
-70.0%
-60.0%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
DADASpA
Northgate
Technologies
Limited
LingoMedia
Corporation
CyberplexInc.
NeXplore
Corporation
CornerWorld
Corporation
En2Go
International,
Inc.
UOMOMedia,
Inc
BroadWebAsia
Inc.
SaharaMedia
Holdings,Inc.
1 Year
-120.0%-100.0%
-80.0%
-60.0%
-40.0%
-20.0%
0.0%
Northgate
Technologies
Limited
Wizzard
Software
Corporation
CyberplexInc.
MobileData
Corp.
UOMOMedia,
Inc
CornerWorld
Corporation
En2Go
International,
Inc.
SaharaMedia
Holdings,Inc.
Beyond
Commerce,
Inc.
BroadWebAsia
Inc.
Source: CapitalIQ
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Capital Market Activity (Financing, M&A)
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Financing Momentum
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Oct-04
Dec-04
Feb-05
Apr-05
Jun-05
Aug-05
Oct-05
Dec-05
Feb-06
Apr-06
Jun-06
Aug-06
Oct-06
Dec-06
Feb-07
Apr-07
Jun-07
Aug-07
Oct-07
Dec-07
Feb-08
Apr-08
Jun-08
Aug-08
Oct-08
Dec-08
Feb-09
Apr-09
Jun-09
Aug-09
Oct-09
Dec-09
Feb-10
Apr-10
(US$m
)
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
(US$m
)
Total (LTM) Average Size (LTM)
Sharp rise drivenby large DSTtransactions
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Financing activity Current MonthMonth Company Name Country Sector Angel/Seed Debt f inancing PIPE Series A Series B Series C Series D Grand Total
Apr-10 Digital Sky Technologies Russia Diversified 300.0 300.0
Groupon USA Social Commerce 135.0 135.0
Vidyo USA Video 25.0 25.0
LendingClub USA Financial Services 24.5 24.5
MokaFive USA Enterprise 21.0 21.0
Diapers.com USA Internet Retail 20.0 20.0
BlackArrow USA Advertising 20.0 20.0
Xobni USA Social Netw orks 16.2 16.2
Box.net USA Collaboration 15.0 15.0
Prosper.com USA Financial Services 14.6 14.6
Knewton USA Online Learning 12.5 12.5
Brightcove USA Video 12.0 12.0
EdgeCas t CDN USA Media 10.0 10.0
Tynt Canada Infrastructure 8.0 8.0
PubMatic USA Advertising 7.5 7.5
Overtone USA Analytics 7.0 7.0
Searchandise Commerce USA Advertising 7.0 7.0
OpenSky USA Social Commerce 6.0 6.0
Stitcher USA Media 6.0 6.0
Cramster USA Vertical Communities 6.0 6.0
quirky USA Social Netw orks 6.0 6.0
58.com China Classif ied 5.8 5.8
Networked Insights USA Analytics 5.0 5.0
Tumblr USA Social Netw orks 5.0 5.0
TellApart USA Analytics 4.8 4.8
Wildfire USA Advertising 4.0 4.0
Daily Grommet USA Social Commerce 3.4 3.4
gdgt USA Vertical Communities 3.2 3.2
TweetPhoto USA Micromedia 2.6 2.6
Assistly USA Enterprise 2.2 2.2
Wibiya Israel Blog 2.0 2.0
Spredfast USA Analytics 1.6 1.6
FreshPlanet USA Gaming 1.5 1.5
ZoomSafer USA Mobile 1.0 1.0
NearVerse USA Location-based SNS 1.0 1.0
DIYSEO USA Search 1.0 1.0
Kontagent USA Analytics 1.0 1.0
Currensee USA Financial Services 0.8 0.8
MyLikes USA Advertising 0.6 0.6
Plyce France Location-based SNS 0.4 0.4
Apr-10 Total 4.0 20.0 300.0 29.1 47.8 298.7 26.6 726.1
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Financing activity Current Month, By Sector
Diversified
2% Gaming
7% Social
Commerce
7%
Crowdsourced
Content
2%
Media
7%
Video
9%
FinancialServices
7%Advertising
11%Social Networks
7%
Enterprise
5%
Internet Retail
2%
Analytics
11%
Collaboration
2%
Online Learning
2%
Vertical
Communities
9%
Infrastructure
2%
Classified
2%
Music
2%
Micromedia
2%
Other
48%
Diversified
26% Gaming
14%
Social
Commerce
12%
# Deals $ Raised
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Financing Activity last three months
12.5
4.65.5 5.5
8.9
6.4
10.2
12.5
9.18.2
5.4
18.2
5.8
0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
800.0
Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10
(US$m)
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
(US$m)
Total Average*May-09 includes $200m FB investment
Dec-09 includes $180m Zynga investment
Apr-10 includes $300m DST investment
$426 mm ex-DST, averaging$15.2 mm per deal
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Capital Market Activity Ranking by Sector, last three months
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
Diversified
Ga
ming
M
edia
V
ideo
Crowdsou
rced
Content
Soc
ial
Comm
erce
Advertising
Se
arch
Social
Netw
orks
Fina
ncial
Services
M
obile
InternetR
etail
Analytics
MobileAd
Enterprise
M
usic
Vertic
al
Communities
On
line
Learning
Mo
bile
Payment
Collabor
ation
Location-
based
SNS
VirtualW
orld
Microblog
Infrastructure
Widget
T
ravel
SMS/Voice
Blog
Classified
On
line
Cale
ndar
Microm
edia
OnlineD
ating
Aggreg
ation
1 8 6 11 5 4 17 8 10 8 6 3 7 2 2 3 7 2 1 1 4 3 2 3 1 3 1 2 1 1 1 1 1
(US$m)
# companies
Advertising has mostdeals in last 3 months
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Top 10 Deals (2010 YTD)
300.0
135.0
25.0 24.5 21.0 20.0 20.0 16.2 15.0 14.6
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
DigitalSky
Technologies
Groupon
Vidyo
LendingClub
MokaFive
Diapers.com
BlackArrow
Xobni
Box.net
Prosper.com
160
142
100
80
50
36.533
21 20 18
0
20
40
60
80
100
120
140
160
180
Turbine Jigsaw Ankeena
Networks
Mochi
Media
Aardvark StudioNow Saf-T-Net C&C
Media
Red 5
Studios,Inc.
Multicast
Media
Financings Acquisitions
DST involved in 2largest deals YTD
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Upcoming events/earnings
Source: CapitalIQ
Company Date Time Quarter Conf Call Details
AOL, Inc. (NYSE:AOL) 28-Apr-10 10:00 AM (EDT) Q1/10 http://ir.aol.com
CDC Corp. (NasdaqGS:CHIN.A) 28-Apr-10 9:00 AM (EDT) Q1/10
IAC/InterActiveCorp. (NasdaqGS:IACI) 28-Apr-10 11:00 a.m. EST Q1/10 http://www.iac.com/InvestorsOpenwave Systems Inc. (NasdaqGS:OPWV) 28-Apr-10 2:00 PM (PDT) Q3/10 877-941-1427
Shutterfly, Inc. (NasdaqGS:SFLY) 28-Apr-10 2:00 PM (PDT) Q1/10 970-315-0490
Taleo Corp. (NasdaqGM:TLEO) 28-Apr-10 5:00 PM (EDT) Q1/10 www.taleo.com
Open Text Corp. (NasdaqGS:OTEX) 29-Apr-10 5:00 PM (EDT) Q3/10 800-814-4860
Tree.Com, Inc. (NasdaqGM:TREE) 30-Apr-10 11:00 a.m. EST Q1/10 866-564-7440
TheStreet.com, Inc. (NasdaqGM:TSCM) 5-May-10 4:30 PM (EST) Q1/10 866-770-7129, p/w 13839355
United Online, Inc. (NasdaqGS:UNTD) 5-May-10 2:30 PM (PST) Q1/10 888-510-1783, 3384050
RealNetworks Inc. (NasdaqGS:RNWK) 6-May-10 5:00 PM (EST) Q1/10 800-857-5305
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Public Company Listing cont.
Company Name Ticker Exchange
Trading
Currency HQ
Current
Price
US$ Market
Cap (mm) Employees
SK Communications Co., Ltd. A066270 KOSE KRW South Korea 16,500.00 618.3 NASNAP Interactive, Inc. STVI OTCBB USD United States 0.25 8.2 NA
Socialwise, Inc. SCLW OTCBB USD United States 0.60 29.1 3,997Sohu.com Inc. SOHU NasdaqGS USD China 52.77 1,993.0 155Spark Networks, Inc. LOV AMEX USD United States 3.48 71.6 NASpectrumDNA, Inc. SPXA OTCBB USD United States 0.10 6.5 916Taleo Corp. TLEO NasdaqGM USD United States 27.41 1,087.0 7,515Tencent Holdings Ltd. 700 SEHK HKD China 164.40 38,752.5 7,665The New York Times Company NYT NYSE USD United States 11.28 1,641.8 NAThe9 Limited NCTY NasdaqGS USD China 6.78 173.0 NATheStreet.com, Inc. TSCM NasdaqGM USD United States 3.95 124.6 28TransGaming, Inc. TSXV:TNG TSXV CAD Canada 0.75 42.0 700
Tree.Com, Inc. TREE NasdaqGM USD United States 9.22 101.5 39Unilava Corporation UNLA OTCBB USD United States 0.47 47.0 NAUniserve Communications Corp. TSXV:USS TSXV CAD Canada 0.15 3.5 1,699United Online, Inc. UNTD NasdaqGS USD United States 8.56 740.8 NAUOMO Media, Inc UOMO OTCBB USD Canada 0.02 1.7 1,086ValueClick, Inc. VCLK NasdaqGS USD United States 10.07 818.9 450Velti Plc VEL AIM GBP United Kingdom 3.36 192.8 2VOIS, Inc. VOIS OTCBB USD United States 0.01 13.0 NAWebMediaBrands Inc WEBM NasdaqGS USD United States 1.06 39.7 NAWebzen Inc. KOSE:A069080 KOSE KRW South Korea 12,050.00 127.7 NA
Wizzard Software Corporation WZE AMEX USD United States 0.25 16.5 NAWorlds.com Inc. WDDD OTCBB USD United States 0.10 5.4 NAXING AG O1BC XTRA EUR Germany 27.40 191.6 NAYD Online Corp. A052770 KOSE KRW South Korea 6,380.00 85.6 NAYnk Korea Inc. A023770 KOSE KRW South Korea 3,195.00 22.8 -
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Disclaimer
RELEVANT DISCLOSURES APPLICABLE TO: NONE
1. None applicable.
ANALYST CERTIFICATION
Each analyst of Mackie Research Capital Corporation whose name appears in this reporthereby certifies that (i) the recommendations and opinions expressed in this researchreport accurately reflect the analysts personal views and (ii) no part of the researchanalysts compensation was or will be directly or indirectly related to the specificconclusions or recommendations expressed in this research report.
This report has been created by Analysts that are employed by Mackie Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report.Information about Mackie Research Capital Corporations Rating System, the distribution of our research to clients and the percentage of recommendations which are in each of our rating categoriesis available on our web site at www.mackieresearch.com.The information contained in this report has been drawn from sources believed to be reliable but its accuracy or completeness is not guaranteed, nor in providing it does Mackie Research CapitalCorporation assume any responsibility or liability. Mackie Research Capital Corporation, its directors, officers and other employees may, from time to time, have positions in the securities mentionedherein. Contents of this report cannot be reproduced in whole or in part without the expressed permission of Mackie Research Capital Corporation. (U.S. Institutional Clients Research CapitalU.S.A. Inc. (a wholly owned subsidiary of Mackie Research Capital Corporation) accepts responsibility for the contents of this report subject to the terms & limitations set out above. Firms orinstitutions receiving this report should effect transactions in securities discussed in the report through Research Capital U.S.A. Inc., a Broker-Dealer Registered with the United States Securities andExchange Commission).
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