Web 2.0 Weekly - June 22, 2010: "AOL Sells Bebo at Massive Loss"

8/9/2019 Web 2.0 Weekly - June 22, 2010: "AOL Sells Bebo at Massive Loss"

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www.mackieresearch.com

Web 2.0 WeeklyAOL Sells Bebo For Massive Loss

Copyright 2000-2010, Mackie Research Capital Corporation, All rights reserved

June 22, 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


2/35

www.mackieresearch.com2

Key Developments (past week)

Deals (M&A, Finance) Bebo a Disastrous Investment for AOL

AOL is reported to have sold Bebo, the UK-based social network it bought just two

years ago for $850 mm, to private equity firm Criterion Partners for under $10 mm.Based on our calculations, AOL paid the equivalent of $38 per Unique Visitor (UV) forBebo, and sold it for under $1 per UV.

Financial Results/Guidance/Partnerships/Product Multiplied Media (TSXV:MMC) announced it would be adding Telus Live Agents to its

popular location-based search application, Poynt Mobile Data Corp. (OTCBB:MBYL) reported unaudited earnings results for the third

quarter and nine months ended April 30, 2010. For the quarter, the company hasreported net loss of $24,096 compared to $20,504 for the same period a year ago. Forthe nine months, the company has reported net loss of $137,531 compared to $129,675for the same period a year ago. Net cash used in operations was $84,802 compared to$69,666 for the same period a year ago.


3/35


Public Company Data


4/35


Aggregate Public Data

Web 2.0 Public Companies Total Median Max Min# Companies 101 - - -

Market Cap (US$ mm) 77,334.7 73.1 30,367.3 1.2

Revenue (US$ mm) 23,508.7 56.9 3,057.7 0.0

1 Year revenue growth 5.7% 8961.6% -100.0%

EBITDA as % of revenue - 13.4% 63.1% -63.7%

Net cash (US$ mm) 9,036.9 2.3 1,835.9 -670.8TEV/Revenue - 2.0x 37.2x 0.0x

TEV/EBITDA - 8.8x 45.0x 0.6x

P/E - 17.0x 91.3x 0.0x

Relative to 52 week high -38.4% -1.8% -95.6%

Source: CapitalIQ


5/35


Public Company Distribution

By Sector By Country

Source: CapitalIQ

28

16

10

8

65

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

0

5

10

15

20

25

30

35

40

45

UnitedStates

Canada

China

SouthKorea

Japan

Taiwan

HongKong

Germany

Poland

Australia

Un

itedKingdom

Italy

Finland

Sweden

India

Russia

Malaysia

Switzerland


6/35


Valuation Dashboard 1 Week

Rising

60%

Falling

33%

Flat

7%

Rising55%

Falling

44%

Flat

1%

Rising

63%

Falling35%

Flat

2%

Market Cap

Rising

67%

Falling

33%

Flat

0%

EV/Revenue

EV/EBITDA P/E


7/35


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

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

5/3/2010

5/10/2010

5/17/2010

5/24/2010

5/31/2010

6/7/2010

6/14/2010

6/21/2010

394040404141404343454647474747485051515050535656606161646666676564667071717274736871737372747679808280818081828286838584

Multiple(x)

Median Long-term average

# companies

Source: CapitalIQ

Revenue multiplesincrease slightlybut remain well

below LT average


8/35


Median EV/EBITDA

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

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

5/3/2010

5/10/2010

5/17/2010

5/24/2010

5/31/2010

6/7/2010

6/14/2010

6/21/2010

202222232322222324232224242626262626252627283129333536384239403840413939394243424143434345434745455151505252535152495251

Multiple(x)


# companies

Source: CapitalIQ

EV/EBITDA multiplesincrease slightly but remaindepressed below LT average


9/35


Median P/E

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

30.0x

35.0x

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

5/3/2010

5/10/2010

5/17/2010

5/24/2010

5/31/2010

6/7/2010

6/14/2010

6/21/2010

191918181919191920191819191920212424252526272727313233313333353538393939394141424040403837383433323535353535353535313433

Multiple(x)


# companies

Source: CapitalIQ

P/E multiples increasebut also are below LT

average


10/35


Average EV/Revenue by Sector

26.5

10.1 9.7

5.74.8 4.7 4.2 4.0 3.7 3.6 3.5 3.1 2.8 2.6 2.5 2.3 2.0 1.8 1.8 1.3

0.4

-

5.0

10.0

15.0

20.0

25.0

30.0

VirtualW

orld

Infrastru

cture

Lea

rning

SocialNetwo

rking

M

usic

VerticalCommunities

Search

Ga

ming

Diversified

M

obile

SMS/V

oice

Mark

eting

Podca

sting

M

edia

Collaboration

Adver

tising

InternetRetail

Enterprise

V

ideo

D

ating

FinancialSer

vices

1 2 1 8 2 1 1 21 6 4 3 6 1 9 1 3 2 3 1 2 1# Companies


11/35


Average EV/EBITDA by Sector

45.0

17.6

15.8

11.7 11.6 11.5 11.29.8 9.5 9.0

7.4

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

Searc

h

Enterpris

e

Mobile

Diversified

InternetRetail

Gamin

g

SocialNetworkin

g

Advertising

Media

Collaboratio

n

Datin

g

1 2 2 5 2 14 6 1 6 1 1# Companies


12/35


Average P/E by Sector

91.3

54.2

39.3

29.7

25.8

19.9

15.3 14.3 13.3

-

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

Internet Retail Enterprise Collaboration Marketing Social

Networking

Diversified Advertising Media Gaming

2 3 1 6 16 8 3 10 28# Companies


13/35


37

27

19

16

13 13 13

11 1110 10

98 7 7

6

5 5 4 4 4 4 3 3 3 3 3 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

SocialGOPLC

Worlds.comInc.

SpectrumDNA,

Inc.

TencentHoldingsLtd.

BeyondCommerce,

Inc.

MOKO.mobiLimited

PaidInc.

Gree,

Inc.

GeoSentricOyj

ChineseGamerInternational

LingoMediaCorporation

TransGaming,

Inc.

DenaCo.

Ltd.

FluidMusicCanada,

Inc.

D

igitalPostInteractive,

Inc.

HUGHESTelematics,

Inc.

AccelerizeNewMedia,

Inc.

WebMediaBrandsInc

Changyou.comLimited

SKCommunicationsCo.,

Ltd.

TaleoCorp.

Mixi,Inc.

KingsoftCorporationLimited

Frogste

rInteractivePicturesAG

iseemediaInc.

Wizza

rdSoftwareCorporation

eProLtd.

OpenTextCorp.

NEOWIZGamesCorporation

Mod

ernTimesGroupMtgAB

Sohu.comInc.

UOMOMedia,

Inc

XINGAG

VeltiPlc

UnilavaCorporation

PNIDigitalMediaInc.

ScoreMediaInc.

Shutterfly,

Inc.

ValueClick,

Inc.

WebzenInc.

GungHoOnlineEntertainment,Inc.

MyriadGroupAG

NeuLionIncorporated

PlatformaM

ediowaPointGroupS.A.

HanbitSoft,

Inc.

YDOnlineCorp.

SparkNetworks,

Inc.

GamaniaDigitalEntertainmentCo.,

Ltd.

HutchisonTelecommunications

HongKongHoldingsLtd.

infoGROUP,

Inc.

Orien

tedMediaGroupBerhad

SNAPInteractive,

Inc.

OAORBCInformationSystems

NetDragonWebSoft,

Inc.

CornerWorldCorporation

InternetGroupSA

TheNewYorkTimesCompany

IAC/InterActiveCorp.

TheStreet.com,

Inc.

YnkKoreaInc.

AQInteractive,

Inc.

PointsInternationalLtd.

CyberplexInc.

CDCCorp.

UnitedOnline,

Inc.

AOL,

Inc.

UniserveCommunicationsCorp.

DADASpA

Northg

ateTechnologiesLimited

GluMobile,

Inc.

GigaMediaLtd.

ActozSoftCo.,

Ltd.

Tree.Com,

Inc.

OpenwaveSystemsInc.

GameOnCoLtd.

RealNetworksInc.

JumbuckEntertainmentLimited

AsknetAG

LookSmart,

Ltd.

DolphinDigitalMedia,

Inc.

EV/Revenue Ranking

Source: CapitalIQ

SocialGo has highestrevenue multiple at 37x


14/35


45.0

35.3

30.328.4

19.819.419.217.8

16.716.115.414.914.213.712.812.612.4

10.5 9.8 9.3 9.0 9.0 8.7 8.4 8.3 8.3 8.2 8.1 7.9 7.4 7.4 7.1 7.0 6.8 6.7 6.7

5.6 5.6 5.3 3.82.5 2.3

1.3 0.6

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

SKCommunicationsCo.,Ltd.

HanbitSoft,Inc.

TencentHoldingsLtd.

TaleoCorp.

Frogste

rInteractivePicturesAG


Gree,Inc.

MyriadGroupAG

Mod

ernTimesGroupMtgAB

DenaCo.Ltd.

Mixi,Inc.

Shutterfly,Inc.

TheStreet.com,Inc.

OpenwaveSystemsInc.

ScoreMediaInc.

YDOnlineCorp.

AQInteractive,Inc.


CyberplexInc.

PlatformaM

ediowaPointGroupS.A.

GamaniaDigitalEntertainmentCo.,Ltd.

OpenTextCorp.

GungHoOnlineEntertainment,Inc.


VeltiPlc

XINGAG

PNIDigitalMediaInc.

DADASpA



SparkNetworks,Inc.

ValueClick,Inc.

Changyou.comLimited

CDCCorp.

NetDragonWebSoft,Inc.

infoGROUP,Inc.

HutchisonTelecommunications

HongKongHoldingsLtd.

TheNewYorkTimesCompany

Sohu.comInc.

UnitedOnline,Inc.

ActozSoftCo.,Ltd.

AOL,Inc.

GameOnCoLtd.


EV/EBITDA Ranking

Excluding EV/EBITDA > 100xSource: CapitalIQ

SK Communications leadsthe group at 45.0x


15/35


91.3

57.2

51.247.7 47.0

40.5 39.337.4

35.032.5 30.9

26.0 25.922.7

19.617.5 17.0 16.3 15.3 14.2 13.4 12.5

11.8 10.2 9.9 9.15.5

3.5 2.3 2.1 1.9 1.2

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

Shutterfly,

Inc.


CDCCorp.

Mixi,Inc.

infoGROUP,

Inc.

TencentHoldingsLtd.

OpenTextCorp.

Gree,

Inc.

DenaCo.

Ltd.

GamaniaDig

italEntertainmentCo.,

Ltd.

NetDragonWebSoft,

Inc.

Ch

ineseGamerInternational

VeltiPlc

Frogst

erInteractivePicturesAG

NE

OWIZGamesCorporation

HutchisonTelecommunication

sHongKongHoldingsLtd.

TheN

ewYorkTimesCompany

ValueClick,

Inc.

CyberplexInc.

Sohu.comInc.

Kin

gsoftCorporationLimited

DADASpA

AOL,

Inc.

Changyou.comLimited

GameOnCoLtd.

UnitedOnline,

Inc.



Netease.comInc.

GiantInteractiveGroup,

Inc.

ShandaInte

ractiveEntertainmentLtd.

PerfectWorldCo.,

Ltd.

P/E Ranking

Source: CapitalIQ

Shutterfly has thehighest P/E at 91.3x


16/35


Total Market Capitalization

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

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

5/3/2010

5/10/2010

5/17/2010

5/24/2010

5/31/2010

6/7/2010

6/14/2010

6/21/2010

98 98 98 98 98 98 98 98 98 98 97 98 98 98 98 99 99 99 99 99 99 99100100100100100100100100100100100100101101101101101101101101101101101101101101101101101101

(US$m)

# companies

Source: CapitalIQ

Total market cap increases to $78 bn


17/35


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

Diversified

Gaming

Media

SocialNetworking

Collaboration

Marketing

Enterprise

Search

InternetRetail

M

obile

Music

SMS/Voice

Advertising

D

ating

FinancialServices

Video

VirtualWorld

VerticalCommu

nities

Pay

ment

Learning

Infrastructure

Podcasting

8 28 10 16 1 6 3 1 2 5 2 3 3 2 1 1 2 1 1 1 3 1# Companies

Eight Diversified companiestotaling $35 bn in market cap


18/35


Market Cap Ranking

0

1,000

2,000

3,000

4,000

5,000

6,000

TencentHoldingsLtd.

DenaCo.

Ltd.

Netease.comInc.

ModernTimesGroupMtgAB

Gree,

Inc.


AOL,

Inc.

ShandaInteractiveEntertainmentLtd.

OpenTextCorp.

Sohu.comInc.

GiantInteractiveGroup,

Inc.

Changyou.comLimited

Th

eNewYorkTimesCompany

PerfectWorldCo.,

Ltd.

HutchisonTelecommunicationsHongKongHoldings

TaleoCorp.

ValueClick,

Inc.



SKCommunicationsCo.,

Ltd.

Mixi,Inc.

Shutterfly,

Inc.


UnitedOnline,

Inc.

RealNetworksInc.

infoGROUP,

Inc.

Gamania

DigitalEntertainmentCo.,

Ltd.

Gung

HoOnlineEntertainment,Inc.

CDCCorp.

VeltiPlc

NetDragonWebSoft,

Inc.

MyriadGroupAG

XINGAG

OpenwaveSystemsInc.

FluidMusicCanada,

Inc.

OA

ORBCInformationSystems

GigaMediaLtd.

WebzenInc.

The9Limited

HUGHESTelematics,

Inc.

ActozSoftCo.,

Ltd.

TheStreet.com,

Inc.


AQInteractive,

Inc.

HanbitSoft,

Inc.

CyberplexInc.

GameOnCoLtd.

Tree.Com,

Inc.

DADASpA

SparkNetworks,

Inc.

PaidInc.

ScoreMediaInc.

YDOnlineCorp.

FrogsterInteractivePicturesAG

NeuLionIncorporated

NgiGroupInc.

PNIDigitalMediaInc.

Moggle,

Inc

QuepasaCorp.

Platform

aMediowaPointGroupS.A.

GravityCo.,

Ltd

TransGaming,

Inc.

GluMobile,

Inc.

WebMediaBrandsInc

DigitalTown,

Inc.

eProLtd.

MultipliedMediaCorporation

Socialwise,

Inc.

LookSmart,

Ltd.

GeoSentricOyj

AsknetAG

NeXploreCorporation

YnkKoreaInc.

VOIS,

Inc.

AccelerizeNewMedia,

Inc.

LingoMediaCorporation

YouBlastGlobal,Inc.

WizzardSoftwareCorporation

DolphinDigitalMedia,

Inc.

No

rthgateTechnologiesLimited

UnilavaCorporation

Ju

mbuckEntertainmentLimited

iseemediaInc.

InternetGroupSA

BeyondCommerce,

Inc.

SocialGOPLC

MOKO.mobiLimited

Ke

ntInternationalHoldingsInc.

DigitalPostInteractive,

Inc.

IASEnergy,

Inc.

Kiwibox.Com,

Inc.

SNAPInteractive,

Inc.

En2GoInternational,Inc.

Worlds.comInc.

SpectrumDNA,

Inc.

O

rientedMediaGroupBerhad


CornerWorldCorporation

BroadWebAsiaInc.

UOMOMedia,

Inc

MobileDataCorp.

Source: CapitalIQ

Tencents $31 bn market capdominates group


19/35


Price Performance 1 Week

Price Momentum Positive price momentum, with 52% of

stocks rising over the past week.

Rising

52%

Flat9%

Falling

39%


20/35


Average Price Performance 1 Week, by Sector

13.3%11.7%

7.7%

5.9%4.2% 3.3%

1.8% 1.7% 0.9% 0.3% 0.1% 0.0%

-1.9% -2.7% -3.2% -3.6%-4.8% -5.6%

-7.6%

-9.9%

-15.3%-16.2%-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

Video

Media

Enterprise

S

MS/Voice

Payment

Search

Marketing

Gaming

Diversified

InternetRetail

Financial

Services

Vertical

Co

mmunities

Mobile

Advertising

Co

llaboration

Social

Networking

P

odcasting

Learning

Dating

VirtualWorld

Music

Infrastructure

Source: CapitalIQ

Video sector showshighest weekly returns


21/35


Price Performance 1 Week

-60.0%

-40.0%

-20.0%

0.0%

20.0%

40.0%

60.0%

BWBA

GEO1V

MBYL

UOMO

WDDD

STVI

SPXA

GLUU

DPDM

VOIS

OMEDIAIEE

TSXV:USS

TSX:FMN

ACLZ

TSXV:LM

GIGM

WSE:PGM

WZE

WSE:IGR

UNTD

DGTW

OTEX

NXPC

TSXV:PN

TSE:2432

O1BC

DGLP

TSCM700

QPSA

KOSE:A069

A052770

GRVY

SNDA

590057

PWRD

A095660

CYOU

ASX:JMB

MKB

NCTY

DB:M0C

PAYD

ETGI

WEBM

TSXV:TNG

CWRL

3838

VEL

TREE

IUSA

GTSM:3083

IACI

XTRA:A5A

YBLT

LOV

A023770

MTGBGA

2121

SOHU

2497

RBCI

SEHK:215

SFLY

MYRN

A066270

6180

3888

SEHK:8086

OPWV

3812

TLEO

SCLW

CHIN.A

TSX:SCR

VCLK777

HUTC

LOOK

A047080

3765

NTES

CM:DA

KNTH

TSX:CX

AIM:SGO

FRGAOL

NYT

KIWB

RNWK

TSX:NLN

TSE:3632

TSX:PTS

TSXV:MMC

A052790

UNLA

BYOC

IASC.A

Source: CapitalIQ


22/35


Price Performance (Top 10)

1 Month

0%

20%

40%

60%

80%

100%

120%

140%

160%

YouBlastGlobal,

Inc.

Beyond

Commerce,Inc.

Gree,Inc.

ActozSoftCo.,

Ltd.

HanbitSoft,Inc.

SK

Communications

Co.,Ltd.

AQInteractive,

Inc.

CyberplexInc.

Points

InternationalLtd.

DADASpA

3 Month

0%

50%

100%

150%

200%

250%

BeyondCommerce,

Inc. e

ProLtd.

YouBlastGlobal,

Inc.

SKCommunications

Co.,

Ltd.

VeltiPlc

PointsInternational

Ltd.

Hutchison

Telecommunications

HongKongHoldings

Ltd. G

ree,

Inc.

LookSmart,

Ltd.

GluMobile,

Inc.

6 Month

0%

500%

1000%

1500%

2000%

2500%

3000%

OAORBC

Information

Systems

eProLtd.

Beyond

Commerce,

Inc.

AQInteractive,

Inc.

Uniserve

Communications

Corp.

VeltiPlc

SNAP

Interactive,

Inc.

ScoreMediaInc.

SK

Communications

Co.,

Ltd.

QuepasaCorp.

1 Year

0%

500%

1000%

1500%

2000%

2500%

3000%

3500%

4000%

OAORBC

Information

Systems

Quepasa

Corp.

eProLtd.

VeltiPlc

DenaCo.Ltd.

FluidMusic

Canada,Inc.

TransGaming,

Inc.

Frogster

Interactive

PicturesAG

ModernTimes

GroupMtgAB

Gree,Inc.

Source: CapitalIQ


23/35


Price Performance (Bottom 10)

1 Week

-60.0%

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

VOIS,Inc.

DolphinDigital

Media,Inc.

GluMobile,Inc.

SpectrumDNA,

Inc.

SNAP

Interactive,Inc.

Worlds.com

Inc.

UOMOMedia,

Inc

MobileData

Corp.

GeoSentricOyj

BroadWebAsia

Inc.

1 Month

-70.0%

-60.0%

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

PaidInc.

SNAP

Interactive,Inc.

LingoMedia

Corporation

VOIS,Inc.

GeoSentricOyj

MobileData

Corp.

SpectrumDNA,

Inc.

BroadWebAsia

Inc.

CornerWorld

Corporation

Unilava

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%

Kiwibox.Com,

Inc.

MobileData

Corp.

MOKO.mobi

Limited

GeoSentricOyj

SpectrumDNA,

Inc.

En2Go

International,

Inc.

UOMOMedia,

Inc

Unilava

Corporation

CornerWorld

Corporation

BroadWebAsia

Inc.

1 Year

-120.0%-100.0%

-80.0%

-60.0%

-40.0%

-20.0%

0.0%

CyberplexInc.

DolphinDigital

Media,

Inc.

Moggle,

Inc

SpectrumDNA,

Inc.

Beyond

Commerce,

Inc.

CornerWorld

Corporation

YouBlast

Global,Inc.

UOMOMedia,

Inc

En2Go

International,

Inc.

BroadWebAsia

Inc.

Source: CapitalIQ


24/35


Capital Market Activity (Financing, M&A)


25/35


Financing Activity Current MonthCompany Name Country Sector Acquisition Angel/Seed Debt financing Series A Series B Series C Series D Series E NA Grand Total

Zynga USA Gaming 147.0 147.0

Invite Media USA Analytics 70.0 70.0

FetchBack USA Advertising 40.0 40.0

HauteLook USA Internet Retail 31.0 31.0

Challenge Games USA Gaming 20.5 20.5

Mytopia Israel Gaming 18.0 18.0

Marin Software USA Advertising 11.2 11.2Apptera USA Mobile Ad 10.0 10.0

BookRenter USA Social Commerce 10.0 10.0

RockYou USA Widget 10.0 10.0

Machinima.com USA Virtual World 9.0 9.0

SafetyWeb USA Social Networks 8.0 8.0

Transpera USA Mobile Ad 7.0 7.0

Kudzu Interactive USA Financial Services 7.0 7.0

Curse USA Social Networks 6.0 6.0

Adisn USA Advertising 5.5 5.5

Connotate USA Analytics 5.3 5.3

Bebo UK Social Networks 5.0 5.0

BigDoor Media USA Media 5.0 5.0

BeachMint USA Social Commerce 5.0 5.0

Metacafe USA Video 5.0 5.0

SponsorPay Germany Virtual Goods 4.6 4.6

LucidMedia USA Advertising 4.5 4.5

Magnetic USA Advertising 4.0 4.0

Gogobot USA Travel 4.0 4.0

Giiv USA Social Commerce 3.4 3.4

Attributor USA Analytics 3.2 3.2

Trefis USA Analytics 3.2 3.2

Metamarkets USA Advertising 2.5 2.5

Snaptic USA Mobile 2.3 2.3

WOWIO USA Internet Retail 1.7 1.7

uCirrus USA Infrastructure 1.7 1.7Cellixis USA Comment/Reputation 1.5 1.5

Dilithium Networks USA Video 1.5 1.5

Schoology USA Online Learning 1.3 1.3

Thumbtack USA Crowdsourced Content 1.2 1.2

SoGeo Netherlands Location-based SNS 0.8 0.8

Rummble UK Location-based SNS 0.8 0.8

TeamSnap USA Vertical Communities 0.7 0.7

159.0 6.0 1.5 50.1 17.0 47.0 175.9 10.0 11.8 478.3


26/35


Estimated Value per Unique Visitor

$568

$370

$200

$125$113

$88$67

$48 $42 $40 $40 $38 $32 $29 $29 $25 $20 $16 $15 $7 $7 $6 $5 $5 $2 $2 $1 $0.79$-

$100

$200

$300

$400

$500

$600

Gowalla

Blippy

Plaxo

Foursquare(rumouredYHOOoffer)

Mint.com

Linkedin

Foursquare

FriendFeed

Twitter

Foursquare

Booya

Bebo

Facebook

ClubPenguin

Twitter

Yelp

PeopleMedia

PageOnce

MMC(Poynt)

Urbanspoon

Playfish

Zynga

Ustream

StumbleUpon

Rockyou

Fr

iendsReunited

Friendster

Bebo

Dec-

09

Apr-

10

May-

08

Apr-

10

Sep-

09

Oct-

08

Mar-

10

Aug-

09

Sep-

09

Sep-

09

May-

10

Mar-

08

May-

09

Aug-

07

Feb-

09

Feb-

08

Jul-

09

Dec-

09

May-

10

Feb-

09

Nov-

09

Dec-

09

Feb-

10

May-

09

Nov-

09

Aug-

09

Dec-

09

Jun-

10

($)

Source: Company reports, Compete.com

AOL Takes Huge Loss on Bebo Sale

AOL paid $850 mm for Bebo in Mar-08 or$38/unique visitor (UV) at the under $10mm price it sold Bebo for last week that

equates to less than $1/UV


27/35


Financing Activity Current Month, by Sector

Other

19%

Gaming

39%

Analytics

17%

Advertising14%

Social

Networks4%Internet Retai l

7%

$ Raised # Deals

Other

52%

Gaming

8%

Analytics

13%

Advertising14%

Internet Retai l

5%

SocialNetworks

8%


28/35


5.4

6.4

8.9

6.4

9.6

12.2

7.8

10.3

5.8

14.1

5.6

9.4

4.6

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

900.0

1000.0

Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10

(US$m)

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

(US$m)

Total Average per Deal LTM Total Average***Dec-09 includes $180m Zynga investment

Apr-10 includes $300m DST investment

Jun-10 includes $147m Zynga investment**Excludes Dec-09, Apr-

Financing Activity

June financing above ~US$265 mmmonthly total deal value average


29/35


0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

450.0

500.0

Gaming

Diversified

C

ollaboration

Mobile

Media

Social

Commerce

Cro

wdsourced

Content

Advertising

Analytics

Video

InternetRetail

SocialNetworks

Financ

ialServices

V

irtualWorld

Widget

Enterprise

VerticalC

ommunities

MobileAd

In

frastructure

Mob

ilePayment

VirtualGoods

OnlineLearning

Music

Aggregation

Search

Travel

Classified

Publishing

Location-

basedSNS

Microblog

Micromedia

Blog

Comment/Reputation

13 1 5 9 8 9 3 16 14 8 5 10 5 5 2 4 9 3 5 1 2 2 2 1 3 4 1 1 4 1 1 1 1

(US$m)

# companies

Capital Market Activity Ranking by Sector, last three months

Gaming the biggestarea of interest inthe past quarter


30/35


Top 5 Sectors (2008-present)

$ Raised # Deals

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

Jan-08

Feb-08

Mar-08

Apr-08

May-08

Jun-08

Jul-08

Aug-08

Sep-08

Oct-08

Nov-08

Dec-08

Jan-09

Feb-09

Mar-09

Apr-09

May-09

Jun-09

Jul-09

Aug-09

Sep-09

Oct-09

Nov-09

Dec-09

Jan-10

Feb-10

Mar-10

Apr-10

May-10

Jun-10

(US$mm)

Soc ia l Netwo rks Gaming Adve rt ising Video Vir tua l World

0

5

10

15

20

25

30

Jan-08

Feb-08

Mar-08

Apr-08

May-08

Jun-08

Jul-08

Aug-08

Sep-08

Oct-08

Nov-08

Dec-08

Jan-09

Feb-09

Mar-09

Apr-09

May-09

Jun-09

Jul-09

Aug-09

Sep-09

Oct-09

Nov-09

Dec-09

Jan-10

Feb-10

Mar-10

Apr-10

May-10

Jun-10

(#Deals)

Soc ial Networks Adve rt ising Gaming Vir tua l World Video

Top 5 sectors average $170 mm & 15 deals per month (aggregate)


31/35


Upcoming Events/Earnings

Source: CapitalIQ

Company Date Time Quarter Conf Call Details

Tree.Com, Inc. (NasdaqGM:TREE) 29-Jul-10 11:00 AM (EST) Q2/10 877-874-1588


32/35


33/35


34/35


Public Company Listing cont.

Company Name Ticker Exchange

Trading

Currency HQ

Current

Price

US$ Mark et

Cap (mm) Employees

SocialGO PLC AIM :SGO AIM GBP United Kingdom 0.01 7.6 9

Socialwise, Inc. SCLW OTCBB USD United States 0.50 25.0 NA

Sohu.com Inc. SOHU NasdaqGS USD China 44.54 1,684.4 3,997

Spark Networks, Inc. LOV AM EX USD United States 3.55 73.1 155

SpectrumDNA, Inc. SPXA OTCBB USD United States 0.06 3.8 8

Taleo Corp. TLEO NasdaqGM USD United States 25.60 1,017.9 916

Tencent Holdings Ltd. 700 SEHK HKD China 128.90 30,367.3 7,845

The New York Times Company NYT NYSE USD United States 10.13 1,474.9 7,665

The9 Limited NCTY NasdaqGS USD China 4.07 103.8 1,010

TheStreet.com, Inc. TSCM NasdaqGM USD United States 2.91 91.8 274

TransGaming, Inc. TSXV:TNG TSXV CAD Canada 0.67 39.1 28

Tree.Com, Inc. TREE NasdaqGM USD United States 6.88 77.1 700

Unilava Corporation UNLA OTCBB USD United States 0.11 10.9 40

Uniserve Communications Corp. TSXV:USS TSXV CAD Canada 0.12 3.4 NA

United Online, Inc. UNTD NasdaqGS USD United States 6.36 554.2 1,699

UOM O M edia, Inc UOM O OTCBB USD Canada 0.02 1.6 NA

ValueClick, Inc. VCLK NasdaqGS USD United States 12.05 980.0 1,086

Velti P lc VEL AIM GBP United Kingdom 4.51 250.6 459

VOIS, Inc. VOIS OTCBB USD United States 0.01 18.0 2

WebM ediaBrands Inc WEBM NasdaqGS USD United States 1.00 37.4 83

Webzen Inc. KOSE:A069080 KOSE KRW South Korea 11,700.00 118.2 326

Wizzard Software Corporation WZE AM EX USD United States 0.20 13.2 80

Worlds.com Inc. WDDD OTCBB USD United States 0.07 4.0 1

XING AG O1BC XTRA EUR Germany 28.35 181.2 293

YD Online Corp. A052770 KOSE KRW South Korea 4,790.00 61.3 NA

Ynk Korea Inc. A023770 KOSE KRW South Korea 2,930.00 19.9 NA

YouBlast Global, Inc. YBLT OTCBB USD United States 0.40 13.8 6


35/35


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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Web 2.0 Weekly - June 22, 2010: "AOL Sells Bebo at Massive Loss"

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