Web 2.0 Weekly - May 4, 2010

36
www.mackieresearch.com Web 2.0 Weekly “Apple+Siri=Mobile Search Madness” Copyright © 2000-2010, Mackie Research Capital Corporation, All rights reserved May 4, 2010 David Shore, CFA, MBA 416.860.6784 [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

description

April 2010 a record month for Web 2.0 Financing: Total transaction value (excluding M&A) in the Web 2.0 universe for April was $808.2 million - the highest monthly total we have recorded. The number of financings was also a record, at 48, averaging $16.8 million each. Note that this includes the $300 million investment in DST by Tencent. Excluding this transaction, the average is $9.6 million. In comparison, total capital raised in March was $168.1 million, averaging $5.4 million over 31 deals. Deal round-up for April: The large deal highlights for the month include:Tencent invested $300mm in DST (investor in Facebook, Zynga, Groupon).Apple acquired Siri, a mobile local search developer for a rumoured $225 mm.DST acquired ICQ, the instant messaging company, for $187.5 mm.Warner Bros. acquired gaming company, Turbine, for $160 mm. DST invested $135mm in social-shopping service Groupon.Salesforce.com acquired crowd-sourced personal contact service, Jigsaw, for $142 mm. Ankeena Networks, media infrastructure solution provider was acquired by Juniper for $100mm.Bearish week: Price performance was largely negative in our Web 2.0 universe, with prices dropping for over 60% of the companies.

Transcript of Web 2.0 Weekly - May 4, 2010

Page 1: Web 2.0 Weekly - May 4, 2010

www.mackieresearch.com

Web 2.0 Weekly

“Apple+Siri=Mobile Search Madness”

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

May 4, 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

Page 2: Web 2.0 Weekly - May 4, 2010

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Key Developments (past week)

Deals (M&A, Finance) – Apple Delves into Content, DST at It Again

� Siri (mobile personal assistant app developer) was acquired by Apple for a rumoured $225 mm – initiating a flurry of prognosticating over what this means for Apple –potentially building a mobile search business around its market leading mobile devices?

� DST, the Russian diversified Web and telecom concern, acquired instant messaging company, ICQ, for $187.5 mm.

� Tremor Media (online Hollywood media source) raised $40 mm in late-stage financing.

� Crowdsourced retail competitor to Groupon, LivingSocial, raised $14 mm – this following on the heels of Groupon’s $135 mm injection from DST.

Financial Results/Guidance� Open Text Corp. (NasdaqGS:OTEX) reported Q3/F10 revenue of $212.8 mm (vs.

$192.0 mm in Q3/F09) and Adjusted EPS of $0.70 (vs. consensus: $0.74 and Q3/F09 of $0.59). Management noted its comfort with current Q4/F10 consensus estimates, which pegs Q4/F10 revenue expectations at $246-$278 mm.

� Sohu.com (NasdaqGS:SOHU) reported Q1/F10 revenue of $129.5 mm vs. $115.7 mm a year ago (+12% Y/Y), with $0.86/share non-GAAP EPS compared with $1.13/share in the same period last year.

Page 3: Web 2.0 Weekly - May 4, 2010

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Public Company Data

Page 4: Web 2.0 Weekly - May 4, 2010

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Aggregate Public Data

Web 2.0 Public Companies Total Median Max Min# Companies 99 - - -

Market Cap (US$ mm) 83,388.0 78.4 38,745.0 1.4

Revenue (US$ mm) 22,599.1 60.2 3,057.7 0.0

1 Year revenue growth 4.2% 857.0% -91.4%

EBITDA as % of revenue - 13.4% 67.7% -75.0%

Net cash (US$ mm) 8,523.1 1.8 1,754.4 -732.7

TEV/Revenue - 2.0x 46.4x 0.0x

TEV/EBITDA - 9.0x 49.6x 0.1x

P/E - 17.4x 96.9x 0.0x

Relative to 52 week high -32.7% 1.9% -98.5%

Source: CapitalIQ

Page 5: Web 2.0 Weekly - May 4, 2010

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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

Ga

min

g

So

cia

l N

etw

ork

ing

Me

dia

Div

ers

ifie

d

Ma

rketin

g

Mobile

Infr

astr

uctu

re

SM

S/V

oic

e

Ente

rpris

e

Ad

vert

isin

g

Inte

rnet

Reta

il

Vir

tual W

orl

d

Datin

g

Mu

sic

Ve

rtic

al C

om

munit

ies

Co

llab

ora

tio

n

Po

dca

stin

g

Lea

rnin

g

Vid

eo

Sea

rch

Pay

ment

Fin

ancia

l S

erv

ices

By Sector By Country

0

5

10

15

20

25

30

35

40

45

Unit

ed S

tate

s

Cana

da

Chin

a

So

uth

Kore

a

Japa

n

Ta

iwa

n

Ge

rma

ny

Au

str

alia

Un

ited

Kin

gdom

Hong K

ong

Po

land

Ru

ssia

Fin

lan

d

Sw

ed

en

Mala

ysia

India

Italy

Sw

itz

erla

nd

Isra

el

Source: CapitalIQ

Page 6: Web 2.0 Weekly - May 4, 2010

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Valuation Dashboard – 1 Week

Rising

24%

Falling

64%

Flat

12%

Rising

51%Falling

46%

Flat

3%

Rising

51%

Falling

47%

Flat

2%

Market Cap

Rising

59%

Falling

41%

Flat

0%

EV/Revenue

EV/EBITDA P/E

Page 7: Web 2.0 Weekly - May 4, 2010

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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

5.0x3

/16

/20

09

3/2

3/2

00

93

/30

/20

09

4/6

/20

09

4/1

3/2

00

94

/20

/20

09

4/2

7/2

00

95

/4/2

00

95

/11

/20

09

5/1

8/2

00

95

/25

/20

09

6/1

/20

09

6/8

/20

09

6/1

5/2

00

96

/22

/20

09

6/2

9/2

00

97

/6/2

00

97

/13

/20

09

7/2

0/2

00

97

/27

/20

09

8/3

/20

09

8/1

0/2

00

98

/17

/20

09

8/2

4/2

00

98

/31

/20

09

9/7

/20

09

9/1

4/2

00

99

/21

/20

09

9/2

8/2

00

91

0/5

/20

09

10

/12

/20

09

10

/19

/20

09

10

/26

/20

09

11

/2/2

00

91

1/9

/20

09

11

/16

/20

09

11

/23

/20

09

11

/30

/20

09

12

/7/2

00

91

2/1

4/2

00

91

2/2

1/2

00

91

2/2

8/2

00

91

/4/2

01

01

/11

/20

10

1/1

8/2

01

01

/25

/20

10

2/1

/20

10

2/8

/20

10

2/1

5/2

01

02

/22

/20

10

3/1

/20

10

3/8

/20

10

3/1

5/2

01

03

/22

/20

10

3/2

9/2

01

04

/5/2

01

04

/12

/20

10

4/1

9/2

01

04

/26

/20

10

5/3

/20

10

383738394039403940424344444645444647484949485253545858585963636362636367676767706969647170707471747476787777777979808280

Mu

ltip

le (

x)

Median Long-term average

# companies

Source: CapitalIQ

Revenue multiples recovering, but

below LT Average

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Median EV/EBITDA

0. 0x

5. 0x

10. 0x

15. 0x

20. 0x

25. 0x

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

5/3/2010

20 19 21 22 23 2322 2222 24 23 2523 24 24 26 27 27 2625 25 26 2829 28 3132 33 35 3737 37 38 3739 40 3737 37 41 4040 40 42 41 42 42 4243 43 46 4848 5050 50 50 49 4847

Multiple (x)

Median Long-term average

# companies

Source: CapitalIQ

EV/EBITDA multiples remain depressed below LT average

Page 9: Web 2.0 Weekly - May 4, 2010

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Median P/E

0. 0x

5. 0x

10. 0x

15. 0x

20. 0x

25. 0x

30. 0x

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

5/3/2010

17 19 19 18 18 1918 1918 20 20 1918 19 19 20 21 22 2524 24 25 2627 26 2930 30 28 3231 30 34 3537 37 3637 37 37 3936 37 37 38 36 36 3531 31 31 3333 3433 33 34 33 3234

Multiple (x)

Median Long-term average

# companies

Source: CapitalIQ

P/E multiples also below LT average

Page 10: Web 2.0 Weekly - May 4, 2010

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Average Valuation – By Sector

-

5.0

10.0

15.0

20.0

25.0

Infr

astr

uctu

re

SM

S/V

oic

e

Socia

l N

etw

ork

ing

Vert

ical

Com

mun

itie

s

Music

Div

ers

ifie

d

Le

arn

ing

Mobile

Mark

eti

ng

Gam

ing

Se

arc

h

Podc

asti

ng

Media

Advert

isin

g

Colla

bora

tion

Vid

eo

Inte

rnet

Re

tail

Ente

rpri

se

Dati

ng

Fin

anc

ial S

erv

ice

s

Virtu

al

Wo

rld

2 3 7 1 2 5 1 4 6 21 1 1 9 3 1 1 2 3 2 1 1# Companies

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

Mobile

Ente

rpris

e

Div

ers

ifie

d

Me

dia

Inte

rnet

Re

tail

Gam

ing

Socia

l N

etw

ork

ing

Colla

bora

tio

n

Fin

anc

ial S

erv

ice

s

Mark

etin

g

Datin

g

Ad

vert

isin

g

Vert

ical

Com

munit

ies

2 2 5 6 2 14 5 1 1 3 1 1 0# Companies

EV/Revenue EV/EBITDA

Page 11: Web 2.0 Weekly - May 4, 2010

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EV/Revenue Ranking

0.10.10.30.40.40.40.4 0.50.50.50.50.6 0.70.70.70.70.80.80.80.90.90.91.0 1.2 1.2 1.3 1.3 1.4 1.4 1.5 1.5 1.5 1.7 1.7 1.82.02.0 2.12.22.22.32.32.42.4 2.52.6 2.72.72.73.03.23.23.43.44.04.9 5.0 5.15.4 5.65.7 5.76.3

7.59.1

11.211.5

13.614.315.4

18.219.2

23.3

27.8

46.4

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

Cyberplex Inc.

Asknet AG

Ngi Group Inc.

Jumbuck Entertainment Limited

Tree.Com, Inc.

RealNetworks Inc.

GameOn Co Ltd.

Openwave Systems Inc.

Uniserve Communications Corp.

Actoz Soft Co., Ltd.

GigaMedia Ltd.

Glu Mobile, Inc.

Northgate Technologies Limited

DADA SpA

AOL, Inc.

Points International Ltd.

IAC/InterActiveCorp.

Internet Group SA

CDC Corp.

The New York Times Company

United Online, Inc.

TheStreet.com, Inc.

CornerWorld Corporation

AQ Interactive, Inc.

OAO RBC Information Systems

infoGROUP, Inc.

HanbitSoft, Inc.

Gamania Digital Entertainment Co., Ltd.

Hutchison Telecommunications Hong Kong

YD Online Corp.

Spark Networks, Inc.

NetDragon WebSoft, Inc.

Ynk Korea Inc.

ValueClick, Inc.

Shutterfly, Inc.

UOMO Media, Inc

Score Media Inc.

SNAP Interactive, Inc.

XING AG

PNI Digital Media Inc.

Velti Plc

Modern Times Group Mtg AB

NeuLion Incorporated

Oriented Media Group Berhad

Sohu.com Inc.

Webzen Inc.

GungHo Online Entertainment, Inc.

Myriad Group AG

Open Text Corp.

Frogster Interactive Pictures AG

iseemedia Inc.

Wizzard Software Corporation

NEOWIZ Games Corporation

SK Communications Co., Ltd.

Taleo Corp.

Lingo Media Corporation

DigitalPost Interactive, Inc.

Changyou.com Limited

Kingsoft Corporation Limited

Accelerize New Media, Inc.

WebMediaBrands Inc

Unilava Corporation

Mixi, Inc.

Gree, Inc.

Fluid Music Canada, Inc.

HUGHES Telematics, Inc.

TransGaming, Inc.

Chinese Gamer International

Beyond Commerce, Inc.

GeoSentric Oyj

MOKO.mobi Limited

Paid Inc.

Tencent Holdings Ltd.

Bright Things plc

SpectrumDNA, Inc.

Source: CapitalIQ

SpectrumDNA has highest revenue multiple at 46.4x

Page 12: Web 2.0 Weekly - May 4, 2010

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EV/EBITDA Ranking

1.9 2.2 2.44.5 5.3 5.6 5.9 6.0 6.6 6.8 7.0 7.2 7.5 7.9 8.1 8.1 8.1 8.9 9.0 9.1 9.7 9.8 11.1

12.0 12.6 12.9 12.9 13.013.7 14.5

15.9 16.617.5 18.5

20.9

25.2

29.632.4

45.5

49.6

0.0

10.0

20.0

30.0

40.0

50.0

60.0

GameOn Co Ltd.

AOL, Inc.

Actoz Soft Co., Ltd.

United Online, Inc.

The New York Times Company

Hutchison Telecommunications Hong Kong Holdings

Ltd.

ValueClick, Inc.

Sohu.com Inc.

DADA SpA

YD Online Corp.

Spark Networks, Inc.

CDC Corp.

infoGROUP, Inc.

Gamania Digital Entertainment Co., Ltd.

Changyou.com Limited

XING AG

NetDragon WebSoft, Inc.

Uniserve Communications Corp.

PNI Digital Media Inc.

Tree.Com, Inc.

Open Text Corp.

IAC/InterActiveCorp.

Velti Plc

GungHo Online Entertainment, Inc.

NEOWIZ Games Corporation

Score Media Inc.

Kingsoft Corporation Limited

Gree, Inc.

Shutterfly, Inc.

HanbitSoft, Inc.

Ynk Korea Inc.

Modern Times Group Mtg AB

Openwave Systems Inc.

Frogster Interactive Pictures AG

Mixi, Inc.

Chinese Gamer International

Taleo Corp.

TheStreet.com, Inc.

Tencent Holdings Ltd.

Myriad Group AG

Excluding EV/EBITDA > 100xSource: CapitalIQ

Myriad Group leads the group at 49.6x

Page 13: Web 2.0 Weekly - May 4, 2010

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P/E Ranking

4.3 5.0 6.4 8.2 9.7 10.5 11.2 11.4 11.514.2 15.4 17.0 17.7 18.6 18.7

21.3 22.7 24.6 25.3 25.8

32.536.9

42.4

55.958.9

67.9

76.2

86.2

96.9

0.0

20.0

40.0

60.0

80.0

100.0

120.0

Jumbuck Entertainment Limited

Cyberplex Inc.

GigaMedia Ltd.

YD Online Corp.

DADA SpA

United Online, Inc.

AOL, Inc.

Changyou.com Limited

GameOn Co Ltd.

ValueClick, Inc.

Sohu.com Inc.

The New York Times Company

Hutchison Telecommunications Hong Kong Holdings

Ltd.

Kingsoft Corporation Limited

CDC Corp.

Frogster Interactive Pictures AG

Velti Plc

Gamania Digital Entertainment Co., Ltd.

NetDragon WebSoft, Inc.

Gree, Inc.

Chinese Gamer International

NEOWIZ Games Corporation

Open Text Corp.

Mixi, Inc.

Tencent Holdings Ltd.

GungHo Online Entertainment, Inc.

HanbitSoft, Inc.

Shutterfly, Inc.

Actoz Soft Co., Ltd.

Source: CapitalIQ

Actoz Soft has the highest P/E at 96.9x

Page 14: Web 2.0 Weekly - May 4, 2010

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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

5/11/2009

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

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 99

(US$m)

# companies

Source: CapitalIQ

Page 15: Web 2.0 Weekly - May 4, 2010

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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

50,000.0D

ivers

ifie

d

Gam

ing

Media

Socia

l N

etw

ork

ing

Colla

bora

tion

Mark

eting

Ente

rprise

Inte

rnet

Reta

il

Searc

h

Mobile

SM

S/V

oic

e

Fin

ancia

l S

erv

ices

Music

Vid

eo

Dating

Virtu

al W

orld

Advert

isin

g

Vert

ical C

om

munitie

s

Paym

ent

Infr

astr

uctu

re

Podcasting

Learn

ing

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 totaling over $17 bn in market cap

Page 16: Web 2.0 Weekly - May 4, 2010

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Market Cap Ranking

0

1,000

2,000

3,000

4,000

5,000

6,000

UO

MO

Media

, In

cB

roadW

ebA

sia

Inc.

Corn

erW

orld C

orp

ora

tion

Unis

erv

e C

om

munic

atio

ns C

orp

.M

obile

Data

Corp

.B

eyond C

om

merc

e, In

c.

En2G

o Inte

rnatio

nal,

Inc.

Dig

italP

ost In

tera

ctiv

e, In

c.

Bright T

hin

gs p

lcK

ent In

tern

atio

nal H

old

ings Inc.

Worlds.c

om

Inc.

Real V

alu

e E

sta

tes, In

c.

Oriente

d M

edia

Gro

up B

erh

ad

Kiw

ibox.C

om

, In

c.

Spectr

um

DN

A, In

c.

Lin

go M

edia

Corp

ora

tion

iseem

edia

Inc.

Sahara

Media

Hold

ings, In

c.

SN

AP

Inte

ractiv

e, In

c.

IAS

Energ

y, In

c.

MO

KO

.mobi L

imite

dV

OIS

, In

c.

Jum

buck E

nte

rtain

ment Lim

ited

Inte

rnet G

roup S

AN

ort

hgate

Technolo

gie

s L

imite

dW

izzard

Softw

are

Corp

ora

tion

Accele

rize N

ew

Media

, In

c.

Dolp

hin

Dig

ital M

edia

, In

c.

Ynk K

ore

a Inc.

Asknet A

GN

eX

plo

re C

orp

ora

tion

Socia

lwis

e, In

c.

LookS

mart

, Ltd

.C

yberp

lex Inc.

Multi

plie

d M

edia

Corp

ora

tion

Tra

nsG

am

ing, In

c.

Unila

va C

orp

ora

tion

WebM

edia

Bra

nds Inc

Glu

Mobile

, In

c.

GeoS

entr

ic O

yj

Dig

italT

ow

n, In

c.

Gra

vity

Co., L

tdF

rogste

r In

tera

ctiv

e P

ictu

res A

GP

NI D

igita

l Media

Inc.

Quepasa C

orp

.M

oggle

, In

cS

core

Media

Inc.

Spark

Netw

ork

s, In

c.

Ngi G

roup Inc.

NeuLio

n Incorp

ora

ted

YD

Onlin

e C

orp

.P

oin

ts Inte

rnatio

nal L

td.

HanbitS

oft, In

c.

DA

DA

SpA

Paid

Inc.

Tre

e.C

om

, In

c.

Flu

id M

usic

Canada, In

c.

AQ

Inte

ractiv

e, In

c.

Gam

eO

n C

o L

td.

Acto

z S

oft C

o., L

td.

TheS

treet.com

, In

c.

Webzen Inc.

Gig

aM

edia

Ltd

.T

he9 L

imite

dM

yriad G

roup A

GX

ING

AG

Velti

Plc

Openw

ave S

yste

ms Inc.

OA

O R

BC

Info

rmatio

n S

yste

ms

Gam

ania

Dig

ital E

nte

rtain

ment

CD

C C

orp

.N

etD

ragon W

ebS

oft, In

c.

HU

GH

ES

Tele

matic

s, In

c.

GungH

o O

nlin

e E

nte

rtain

ment,

info

GR

OU

P, In

c.

RealN

etw

ork

s Inc.

Shutterf

ly, In

c.

SK

Com

munic

atio

ns C

o., L

td.

Unite

d O

nlin

e, In

c.

NE

OW

IZ G

am

es C

orp

ora

tion

Valu

eC

lick, In

c.

Kin

gsoft C

orp

ora

tion L

imite

dM

ixi,

Inc.

Chin

ese G

am

er

Inte

rnatio

nal

Tale

o C

orp

.H

utc

his

on T

ele

com

munic

atio

ns

The N

ew

York

Tim

es C

om

pany

Changyou.c

om

Lim

ited

Perf

ect W

orld C

o., L

td.

Gia

nt In

tera

ctiv

e G

roup, In

c.

Sohu.c

om

Inc.

AO

L, In

c.

Open T

ext C

orp

.G

ree, In

c.

IAC

/Inte

rActiv

eC

orp

.S

handa Inte

ractiv

eM

odern

Tim

es G

roup M

tg A

BN

ete

ase.c

om

Inc.

Tencent H

old

ings L

td.

Source: CapitalIQ

Tencent’s $39 bn market cap dominates group

Page 17: Web 2.0 Weekly - May 4, 2010

www.mackieresearch.com17

Price Performance – 1 week

Rising

28%

Flat

10%

Falling

62%

Price Momentum• Negative momentum with 62% of

stocks falling or flat over past week (following on last week’s 61% decliner figure).

Page 18: Web 2.0 Weekly - May 4, 2010

www.mackieresearch.com18

Average Price Performance – 1 Week, By Sector

17.0%14.0%13.7%12.4%

9.7%6.3%

3.9%

-1.8% -2.6% -2.8% -2.9% -4.1% -4.3% -4.7% -5.7% -6.0% -6.5% -6.5% -7.7%-10.9%

-12.9%-13.2%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Infr

astru

ctu

re

Vir

tua

l W

orl

d

Ve

rtic

al

Co

mm

un

itie

s

Sea

rch

Vid

eo

Ma

rketin

g

Datin

g

Div

ers

ifie

d

Inte

rnet R

eta

il

Ad

vert

isin

g

Ga

min

g

SM

S/V

oic

e

Mo

bile

Me

dia

Fin

an

cia

l

Se

rvic

es

Po

dca

stin

g

En

terp

rise

Pa

ym

en

t

So

cia

l

Ne

two

rkin

g

Mu

sic

Co

llab

ora

tion

Le

arn

ing

# companies

Source: CapitalIQ

Infrastructure shows biggest gains

Page 19: Web 2.0 Weekly - May 4, 2010

www.mackieresearch.com19

Price Performance – 1 Week

-60.0%

-40.0%

-20.0%

0.0%

20.0%

40.0%

60.0%

BW

BA

IAS

C.A

TS

XV

:US

SV

OIS

AO

LU

OM

OO

PW

VD

PD

MG

LU

UT

SX

V:L

MO

TE

XN

XP

CF

RG

TS

X:C

XG

RV

YM

YR

NU

NL

AX

TR

A:A

5A

NY

TT

SE

:36

32

CH

IN.A

WS

E:IG

RN

TE

SC

M:D

AA

IM:B

GT

KIW

BT

SX

:PT

SS

CL

WS

OH

UW

ZE

TR

EE

A0

52

79

0M

KB

SF

LY

UN

TD

DB

:M0

C3

76

5C

YO

U5

90

05

7A

05

27

70

TS

XV

:TN

GA

CL

ZN

CT

YT

LE

OG

AT

SC

MP

WR

DIA

CI

A0

23

77

0G

IGM

AS

X:J

MB

TS

X:F

MN

O1

BC

H

UT

C7

77

21

21

RN

WK

A0

47

08

0K

NT

HIU

SA

MT

G B

RV

LU

SH

HD

ET

GI

CW

RL

DG

TW

GE

O1

VT

SX

V:P

N7

00

DG

LP

IEE

38

88

38

12

61

80

KO

SE

:A0

69

08

0S

ND

AV

EL

GT

SM

:30

83

PA

YD

RB

CI

LO

VS

TV

IV

CL

KA

09

56

60

SP

XA

TS

XV

:MM

CO

ME

DIA

24

97

TS

X:S

CR

TS

X:N

LN

BY

OC

A0

66

27

0W

EB

MS

EH

K:2

15

38

38

QP

SA

WD

DD

LO

OK

MB

YL

Source: CapitalIQ

Page 20: Web 2.0 Weekly - May 4, 2010

www.mackieresearch.com20

Price Performance (Top 10)

1 Month

0%

20%

40%

60%

80%

100%

120%

140%

Be

yo

nd

Co

mm

erc

e,

Inc.

Lo

okS

ma

rt,

Ltd

.

Dig

ita

lTo

wn

, In

c.

SK

Co

mm

un

ica

tion

s

Co

., L

td.

Qu

ep

asa

Co

rp.

Glu

Mo

bile

, In

c.

AQ

In

tera

ctiv

e,

Inc.

IAS

En

erg

y, I

nc.

Ge

oS

en

tric

Oyj

Kiw

ibo

x.C

om

,

Inc.

3 Month

0%

500%

1000%

1500%

2000%

2500%

3000%

3500%

4000%

OA

O R

BC

Info

rmation

Syste

ms

Beyond

Com

merc

e,

Inc.

Unila

va

Corp

ora

tion

IAS

Energ

y,

Inc.

Ngi G

roup

Inc.

AQ

Inte

ractive,

Inc.

Quepasa

Corp

.

SN

AP

Inte

ractive,

Inc.

LookS

mart

,

Ltd

.

Shutt

erf

ly,

Inc.

6 Month

0%

500%

1000%

1500%

2000%

2500%

3000%

OA

O R

BC

Info

rmation

Syste

ms

Quepasa C

orp

.

SN

AP

Inte

ractive,

Inc.

AQ

Inte

ractive,

Inc.

SK

Com

munic

ations

Co.,

Ltd

.

Unis

erv

e

Com

munic

ations

Corp

.

Oriente

d M

edia

Gro

up B

erh

ad

Ngi G

roup I

nc.

Velti P

lc

Poin

ts

Inte

rnational Ltd

.1 Year

0%500%

1000%1500%2000%2500%

3000%3500%4000%4500%5000%

OA

O R

BC

Info

rma

tio

n

Sys

tem

s

Qu

ep

asa

Co

rp.

Tra

nsG

am

ing

,

Inc.

AQ

In

tera

ctiv

e,

Inc.

Flu

id M

usi

c

Ca

na

da

, In

c.

Dig

ita

lPo

st

Inte

ract

ive

, In

c.

VO

IS,

Inc.

Un

ise

rve

Co

mm

un

ica

tion

s

Co

rp.

Ve

lti P

lc

Te

nce

nt

Ho

ldin

gs L

td.

Source: CapitalIQ

Page 21: Web 2.0 Weekly - May 4, 2010

www.mackieresearch.com21

Price Performance (Bottom 10)

1 Week

-60.0%

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

Lin

go M

ed

ia

Corp

ora

tion

Glu

Mo

bile

, In

c.

Dolp

hin

Dig

ital

Med

ia, In

c.

Ope

nw

ave

Syste

ms I

nc.

UO

MO

Med

ia,

Inc

AO

L, In

c.

VO

IS, In

c.

Unis

erv

e

Com

munic

atio

ns

Co

rp.

IAS

Ene

rgy

, In

c.

Bro

adW

eb

Asia

Inc

.

1 Month

-60.0%

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

DA

DA

SpA

Lin

go M

edia

Co

rpora

tion

Ori

ente

d M

ed

ia

Gro

up

Be

rhad

Cyberp

lex

Inc

.

iseem

edia

Inc

.

UO

MO

Med

ia,

Inc

Mo

bile

Data

Corp

.

Bro

adW

eb

Asia

Inc.

En2G

o

Inte

rnatio

na

l,

Inc

.

Corn

erW

orl

d

Corp

ora

tion

6 Month

-100.0%

-90.0%

-80.0%

-70.0%

-60.0%

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

No

rthg

ate

Te

ch

nolo

gie

s

Lim

ited

Lin

go

Me

dia

Co

rpora

tion

NeX

plo

re

Co

rpora

tion

DA

DA

SpA

Wiz

zard

Soft

ware

Co

rpora

tion

Cyb

erp

lex I

nc.

Corn

erW

orld

Corp

ora

tion

En2G

o

Inte

rnatio

na

l,

Inc.

UO

MO

Me

dia

,

Inc

Bro

adW

eb

Asia

Inc

.1 Year

-120.0%

-100.0%

-80.0%

-60.0%

-40.0%

-20.0%

0.0%

Mobile

Data

Corp

.

Spectr

um

DN

A,

Inc.

Wiz

zard

Softw

are

Corp

ora

tion

Cyberp

lex Inc.

Corn

erW

orld

Corp

ora

tion

En2G

o

Inte

rnatio

nal,

Inc.

UO

MO

Media

,

Inc

Sahara

Media

Hold

ings, In

c.

Beyond

Com

merc

e,

Inc.

Bro

adW

ebA

sia

Inc.

Source: CapitalIQ

Page 22: Web 2.0 Weekly - May 4, 2010

www.mackieresearch.com22

Capital Market Activity (Financing, M&A)

Page 23: Web 2.0 Weekly - May 4, 2010

www.mackieresearch.com23

Financing Momentum

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Oct-

04

De

c-0

4

Fe

b-0

5

Ap

r-0

5

Ju

n-0

5

Au

g-0

5

Oct-

05

De

c-0

5

Fe

b-0

6

Ap

r-0

6

Ju

n-0

6

Au

g-0

6

Oct-

06

De

c-0

6

Fe

b-0

7

Ap

r-0

7

Ju

n-0

7

Au

g-0

7

Oct-

07

De

c-0

7

Fe

b-0

8

Ap

r-0

8

Ju

n-0

8

Au

g-0

8

Oct-

08

De

c-0

8

Fe

b-0

9

Ap

r-0

9

Ju

n-0

9

Au

g-0

9

Oct-

09

De

c-0

9

Fe

b-1

0

Ap

r-1

0

(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 driven by large DST transactions

Page 24: Web 2.0 Weekly - May 4, 2010

www.mackieresearch.com24

Financing Activity – Current MonthMonth Company Name Country Sector Angel/Seed Debt financ ing PIPE Serie s A Ser ies B Ser ies C Se ries D Grand Total

Apr-10 Digital S ky Technologies Rus s ia Divers if ied 300.0 300.0

Groupon USA S ocial Commerce 135.0 135.0

Tremor Media USA V ideo 40.0 40.0

V idyo USA V ideo 25.0 25.0

LendingC lub USA Financial S erv ices 24.5 24.5

MokaFive USA Enterpris e 21.0 21.0

Diapers .com USA Internet Retail 20.0 20.0

BlackArrow USA Advertis ing 20.0 20.0

Xobni USA S ocial Netw orks 16.2 16.2

Zong USA Mobile Payment 15.0 15.0

Box.net USA Collaboration 15.0 15.0

Pros per .com USA Financial S erv ices 14.6 14.6

L ivingSocial USA S ocial Netw orks 14.0 14.0

Knew ton USA Online Learning 12.5 12.5

Brightcove USA V ideo 12.0 12.0

EdgeCas t CDN USA Media 10.0 10.0

Tynt Canada Inf ras tructure 8.0 8.0

PubMatic USA Advertis ing 7.5 7.5

Overtone USA Analy tic s 7.0 7.0

Mojiva USA Mobile Ad 7.0 7.0

Searchandis e Commerce USA Advertis ing 7.0 7.0

OpenSky USA S ocial Commerce 6.0 6.0

Stitcher USA Media 6.0 6.0

C rams ter USA V ertica l Communities 6.0 6.0

quirky USA S ocial Netw orks 6.0 6.0

58.com China Clas s if ied 5.8 5.8

Netw orked Ins ights USA Analy tic s 5.0 5.0

Tumblr USA S ocial Netw orks 5.0 5.0

Te llApart USA Analy tic s 4.8 4.8

Wildfire USA Advertis ing 4.0 4.0

Daily Grommet USA S ocial Commerce 3.4 3.4

gdgt USA V ertica l Communities 3.2 3.2

Tw eetPhoto USA Micromedia 2.6 2.6

As s is tly USA Enterpris e 2.2 2.2

TheWrap.com USA Media 2.0 2.0

Wibiya Is rael B log 2.0 2.0

Academ ia.edu USA S ocial Netw orks 1.6 1.6

Spredfas t USA Analy tic s 1.6 1.6

Klout USA Analy tic s 1.5 1.5

Fres hPlanet USA Gaming 1.5 1.5

DIYSEO USA S earch 1.0 1.0

NearVers e USA Location-bas ed S NS 1.0 1.0

ZoomSafer USA Mobile 1.0 1.0

Kontagent USA Analy tic s 1.0 1.0

As s ured L abor USA S ocial Netw orks 1.0 1.0

Currens ee USA Financial S erv ices 0.8 0.8

MyL ikes USA Advertis ing 0.6 0.6

Plyce France Location-bas ed S NS 0.4 0.4

Apr-10 Total 5.0 20.0 300.0 47.2 56.8 312.7 66.6 808.2

Page 25: Web 2.0 Weekly - May 4, 2010

www.mackieresearch.com25

Financing Activity – Current Month, By Sector

Diversified

2%Mobile

5% Collaboration

3%

Gaming

6%

Social Commerce

5%

Crowdsourced

Content

2%

Media

6%

Video

8%

Social Networks

10%Financial Services

5%Advertising

8%

Widget

2%

Enterprise

3%

Analytics

10%

Internet Retail

2%

Mobile Payment

2%

Online Learning

2%

Vertical

Communities

6%

Infrastructure

2%

Classified

2%

Music

2%

Blog

2%

Search

2%

Travel

2%

Mobile Ad

2%

Micromedia

2%

Location-based

SNS

3%

Other

57%

Diversified

18%

Mobile

13%

Collaboration

12%

# Deals $ Raised

Page 26: Web 2.0 Weekly - May 4, 2010

www.mackieresearch.com26

Financing Activity – Last Three Months

12.5

4.6

5.5 5.5

8.9

6.4

10.5

12.5

9.1

8.2

5.4

16.8

5.8

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

900.0

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

(US

$m

)

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

Dec-09 includes $180m Zynga investment

Apr-10 includes $300m DST investment

$508M ex-DST, averaging $9.6M per deal

Page 27: Web 2.0 Weekly - May 4, 2010

www.mackieresearch.com27

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

Div

ers

ified

Mobile

Gam

ing

Vid

eo

Colla

bora

tion

Media

Cro

wdsourc

ed

Conte

nt

Socia

l

Com

merc

e

Advert

isin

g

Socia

l

Netw

ork

s

Searc

h

Fin

ancia

l

Serv

ices

Inte

rnet R

eta

il

Analy

tics

Mobile

Ad

Wid

get

Mobile

Paym

ent

Ente

rprise

Music

Vert

ical

Com

muniti

es

Onlin

e

Learn

ing

Locatio

n-

based S

NS

Virtu

al W

orld

Mic

roblo

g

Infr

astr

uctu

re

Tra

vel

SM

S/V

oic

e

Blo

g

Cla

ssifi

ed

Onlin

e

Cale

ndar

Mic

rom

edia

Onlin

e D

atin

g

Aggre

gatio

n

1 8 9 12 2 7 5 4 17 13 8 8 3 8 3 2 2 2 3 7 2 4 3 2 3 3 1 2 1 1 1 1 1

(US

$m

)

# companies

Advertising has most deals in last 3 months

Page 28: Web 2.0 Weekly - May 4, 2010

www.mackieresearch.com28

Financing by Type (LTM)

Financing by Type -LTM

(# deals )

PIPE

1.5%

Angel/S eed

19.8%

Debt f inancing

2.8%S eries A

25.4%

S eries B

26.5%

S eries C

17.3%

S eries D

5.6%

S eries E

1.0%

# Deals $ Raised

Financing by Type - LTM

(amount raised)

PIPE

9.7%

Angel/S eed

5.4%

Debt f inancing

1.3%

S eries A

12.1%

S eries B

21.1%

S eries C

30.9%

S eries D

14.8%

S eries E

4.7%

Page 29: Web 2.0 Weekly - May 4, 2010

www.mackieresearch.com29

Financing by Geography (LTM)

# Deals $ Raised

Financing/M&A by Country - LTM (#)

UK

2.8%

USA

80.3%

Canada

3.9%

China

3.0%

Israel

2.4%

ROW

7.5%

Financing/M&A by Country - LTM ($)

UK

7.4% China

3.9%

USA

53.4%

Luxembourg

23.8%

Russia

3.6%

Israel

3.2%

Canada

2.1%

ROW

2.8%

Page 30: Web 2.0 Weekly - May 4, 2010

www.mackieresearch.com30

Financing, By Type

# Deals $ Raised

Financing by Type

(Number of Deals)

7 7 7

2117

12

23

52

2216

6

44

18

815

41

138

18

39

19

20

913

42

913

18

40

13

15

14

42

12

10

17

39

915

12

36

242

2

3

7

2 2

2

6

3

2

4

9

2

2

3

7

2 1

-

3

3

29

18

23

70

28 27

43

98

38

33

24

95

32

20

35

87

24 24

30

78

-

20

40

60

80

100

120

Jan-0

9

Feb-0

9

Ma

r-0

9

Q1/0

9

Apr-

09

May-0

9

Jun-0

9

Q2/0

9

Ju

l-0

9

Aug

-09

Sep

-09

Q3/0

9

Oc

t-0

9

Nov-0

9

Dec-0

9

Q4/0

9

Jan-1

0

Feb-1

0

Ma

r-1

0

Q1/1

0

Apr-

10

(#)

Late Stage (D/E)

Mid-Stage (B/C)

Early Stage (Angel/A)

Total

Financing by Type

(Amount raised)

91.245.6 47.7

184.5

74.4 54.679.2

208.2

76.639.0 17.5

133.1

54.3 55.5 60.5

170.2

46.3 28.8 48.2

123.3

52.2

191.1

100.0 110.0

401.0

74.682.6

111.7

268.8

99.8121.2

80.2

301.1

123.8 111.5

313.4

548.8

125.8 163.4 118.4

407.6

369.5

19.0

48.2 27.0

94.2

12.0

205.0

10.3

227.3

31.019.8 133.1

183.9

32.0 52.5

76.5

161.0

47.0 10.0

-

57.0

66.6

301.3

193.7 184.6

679.6

161.0

342.2

201.2

704.3

207.4179.9

230.8

618.1

210.1 219.5

450.4

880.0

219.1202.1

166.6

587.9

488.2

-

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

900.0

1,000.0

Ja

n-0

9

Fe

b-0

9

Ma

r-09

Q1

/09

Ap

r-09

Ma

y-0

9

Ju

n-0

9

Q2

/09

Ju

l-09

Au

g-0

9

Se

p-0

9

Q3

/09

Oc

t-09

No

v-0

9

De

c-0

9

Q4

/09

Ja

n-1

0

Fe

b-1

0

Ma

r-10

Q1

/10

Ap

r-10

(US

$m

)

Late Stage (D/E)

Mid-Stage (B/C)

Early Stage (Angel/A)

Total

Page 31: Web 2.0 Weekly - May 4, 2010

www.mackieresearch.com31

Top 10 Deals (2010 YTD)

300.0

135.0

44.0 40.027.5 25.0 25.0

0.0

25.0 24.5

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

Dig

ita

l S

ky

Te

ch

no

log

ies

Gro

up

on

Liv

ing

So

cia

l

Tre

mo

r M

ed

ia

Qu

an

tca

st

Vid

yo

Ng

mo

co

Ye

lp

Pa

ym

o

Le

nd

ing

Clu

b

225.0

187.5

160.0

142.0

100.0

80.0

50.0

36.533.0

25.0

0

50

100

150

200

250

Siri ICQ Turbine Jigsaw Ankeena

Networks

Mochi

Media

Aardvark StudioNow Saf-T-Net LabPixies

Financings Acquisitions

DST involved in 2 largest financing deals YTD and 2nd

largest acquisition

Page 32: Web 2.0 Weekly - May 4, 2010

www.mackieresearch.com32

Upcoming Events/Earnings

Source: CapitalIQ

Company Date Time Quarter Conf Call Details

Glu Mobile, Inc. (NasdaqGM:GLUU) 4-May-10 1:30 PM (PST) Q1/10 877-311-0653, #70056318

TheStreet.com, Inc. (NasdaqGM:TSCM) 5-May-10 4:30 PM (EST) Q1/10 866-770-7129, p/w 13839355

LookSmart, Ltd. (NasdaqGM:LOOK) 5-May-10 5:00 PM (EST) Q1/10 1-877-407-4018

United Online, Inc. (NasdaqGS:UNTD) 5-May-10 2:30 PM (PST) Q1/10 888-510-1783, #3384050

RealNetw orks Inc. (NasdaqGS:RNWK) 6-May-10 5:00 PM (EST) Q1/10 800-857-5305

CDC Corp. (NasdaqGS:CHIN.A) 11-May-10 9:00 AM (EST) Q1/10 888-603-6873, #68538655

Page 33: Web 2.0 Weekly - May 4, 2010

www.mackieresearch.com33

Public Company Listing

Company Name Ticker Exchange

Trading

Currency HQ

Current

Price

US$ Market

Cap (mm ) Employees

Accelerize New M edia, Inc. ACLZ OTCBB USD United States 1 16.4 10

Actoz Soft Co., Ltd. A052790 KOSE KRW South Korea 13,800 108.8 NA

AOL, Inc. AOL NYSE USD United States 22 2,325.5 6,700

AQ Interactive, Inc. 3838 TSE JPY Japan 172,400 99.1 NA

Asknet AG XTRA:A5A XTRA EUR Germany 4 23.8 NA

Beyond Commerce, Inc. BYOC OTCBB USD United States 0 4.8 NA

Bright Things plc A IM :BGT AIM GBP United Kingdom 0 6.1 9

BroadWebAsia Inc. BWBA OTCPK USD United States 0 1.7 46

CDC Corp. CHIN.A NasdaqGS USD Hong Kong 3 278.2 NA

Changyou.com Limited CYOU NasdaqGS USD China 33 1,678.5 1,308

Chinese Gamer International GTSM :3083 GTSM TWD Taiwan 385 1,037.8 NA

CornerWorld Corporation CWRL OTCBB USD United States 0 1.9 16

Cyberplex Inc. TSX:CX TSX CAD Canada 1 37.2 NA

DADA SpA CM :DA CM EUR Italy 4 87.8 NA

DigitalPost Interactive, Inc. DGLP OTCBB USD United States 0 5.2 NA

DigitalTown, Inc. DGTW OTCBB USD United States 2 48.0 3

Dolphin Digital M edia, Inc. DPDM OTCBB USD United States 0 17.6 NA

En2Go International, Inc. ETGI OTCBB USD United States 0 4.8 NA

Fluid M usic Canada, Inc. TSX:FM N TSX CAD United States 2 99.1 NA

Frogster Interactive Pictures AG FRG XTRA EUR Germany 18 60.8 NA

Gamania Digital Entertainment Co., Ltd. 6180 GTSM TWD Taiwan 52 251.5 NA

GameOn Co Ltd. 3812 TSE JPY Japan 98,600 100.8 NA

GeoSentric Oyj GEO1V HLSE EUR Finland 0 47.3 NA

Giant Interactive Group, Inc. GA NYSE USD China 8 1,737.4 NA

GigaM edia Ltd. GIGM NasdaqGS USD Taiwan 3 162.5 751

Glu M obile, Inc. GLUU NasdaqGM USD United States 1 44.0 479

Gravity Co., Ltd GRVY NasdaqGM USD South Korea 2 55.6 469

Gree, Inc. TSE:3632 TSE JPY Japan 5,210 2,492.0 NA

GungHo Online Entertainment, Inc. 3765 OSE JPY Japan 282,300 342.6 NA

HanbitSoft, Inc. A047080 KOSE KRW South Korea 4,230 82.9 NA

HUGHES Telematics, Inc. HUTC OTCBB USD United States 3 295.3 276

Hutchison Telecommunications Hong Kong Holdings Ltd.SEHK:215 SEHK HKD Hong Kong 2 1,066.7 NA

IAC/InterActiveCorp. IACI NasdaqGS USD United States 23 2,534.1 3,200

IAS Energy, Inc. IASC.A OTCPK USD Canada 0 9.2 NA

infoGROUP, Inc. IUSA NasdaqGS USD United States 8 465.0 3,146

Internet Group SA WSE:IGR WSE PLN Poland 1 12.3 NA

Page 34: Web 2.0 Weekly - May 4, 2010

www.mackieresearch.com34

Public Company Listing cont.

Company Name Ticker Exchange

Trading

Currency HQ

Current

Pr ice

US$ Market

Cap (mm) Employees

iseemedia Inc. IEE TSXV CAD Canada 0.12 8.3 79

Jumbuck Entertainment Limited ASX:JM B ASX AUD Australia 0.25 11.1 NA

Kent International Holdings Inc. KNTH OTCPK USD United States 1.80 6.4 NA

Kingsoft Corporation Limited 3888 SEHK HKD China 6.26 878.1 NA

Kiwibox.Com, Inc. KIWB OTCBB USD United States 0.01 6.9 NA

Lingo M edia Corporation TSXV:LM TSXV CAD Canada 0.59 7.3 65

LookSmart, Ltd. LOOK NasdaqGM USD United States 1.59 27.3 NA

M ixi, Inc. 2121 TSE JPY Japan 601,000.00 982.6 NA

M obile Data Corp. M BYL OTCBB USD United States 0.11 2.6 2,936

M odern Times Group M tg AB M TG B OM SEK Sweden 450.10 4,073.0 2

M oggle, Inc DB:M 0C DB EUR United States 1.14 70.2 NA

M OKO.mobi Limited M KB ASX AUD Australia 0.09 9.9 NA

M ultiplied M edia Corporation TSXV:M M C TSXV CAD Canada 0.18 40.5 405

M yriad Group AG M YRN SWX CHF Switzerland 3.70 165.3 NA

NEOWIZ Games Corporation A095660 KOSE KRW South Korea 40,150.00 757.3 2,901

NetDragon WebSoft, Inc. 777 SEHK HKD China 4.19 285.3 NA

Netease.com Inc. NTES NasdaqGS USD China 34.40 4,455.5 224

NeuLion Incorporated TSX:NLN TSX CAD Canada 0.68 78.4 NA

NeXplore Corporation NXPC OTCPK USD United States 0.44 24.5 NA

Ngi Group Inc. 2497 TSE JPY Japan 57,800.00 75.7 160

Northgate Technologies Limited 590057 BSE INR India 17.95 14.1 2,523

OAO RBC Information Systems RBCI M ICEX RUB Russia 46.08 212.3 3,411

Open Text Corp. OTEX NasdaqGS USD Canada 41.81 2,374.0 590

Openwave Systems Inc. OPWV NasdaqGS USD United States 2.31 193.5 NA

Oriented M edia Group Berhad OM EDIA KLSE M YR M alaysia 0.17 6.9 20

Paid Inc. PAYD OTCBB USD United States 0.34 91.4 NA

Perfect World Co., Ltd. PWRD NasdaqGS USD China 34.07 1,697.6 NA

PNI Digital M edia Inc. TSXV:PN TSXV CAD Canada 1.80 60.9 91

Points International Ltd. TSX:PTS TSX CAD Canada 0.56 82.8 71

Quepasa Corp. QPSA OTCBB USD United States 5.39 69.9 NA

Real Value Estates, Inc. RVLU OTCBB USD Israel 1.03 6.6 1,754

RealNetworks Inc. RNWK NasdaqGS USD United States 4.41 596.0 NA

Sahara M edia Holdings, Inc. SHHD OTCBB USD United States 0.25 8.4 220

Score M edia Inc. TSX:SCR TSX CAD Canada 0.88 70.6 NA

Shanda Interactive Entertainment Ltd. SNDA NasdaqGS USD China 45.25 3,043.3 519

Shutterfly, Inc. SFLY NasdaqGS USD United States 23.42 627.6 NA

Page 35: Web 2.0 Weekly - May 4, 2010

www.mackieresearch.com35

Public Company Listing cont.

Company Name Ticke r Exchange

Trading

Currency HQ

Current

Pr ice

US$ Market

Cap (mm) Employees

SK Communications Co., Ltd. A066270 KOSE KRW South Korea 18,550.00 695.1 15

SNAP Interactive, Inc. STVI OTCBB USD United States 0.26 8.6 NA

Socialwise, Inc. SCLW OTCBB USD United States 0.56 27.2 3,997

Sohu.com Inc. SOHU NasdaqGS USD China 48.49 1,831.3 155

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

SpectrumDNA, Inc. SPXA OTCBB USD United States 0.10 6.9 916

Taleo Corp. TLEO NasdaqGM USD United States 26.48 1,050.1 7,515

Tencent Ho ldings Ltd. 700 SEHK HKD China 164.40 38,745.0 7,665

The New York Times Company NYT NYSE USD United States 10.17 1,480.2 NA

The9 Limited NCTY NasdaqGS USD China 6.42 163.8 274

TheStreet.com, Inc. TSCM NasdaqGM USD United States 3.80 119.9 28

TransGaming, Inc. TSXV:TNG TSXV CAD Canada 0.72 40.6 700

Tree.Com, Inc. TREE NasdaqGM USD United States 8.63 95.0 39

Unilava Corporation UNLA OTCBB USD United States 0.42 42.0 NA

Uniserve Communications Corp. TSXV:USS TSXV CAD Canada 0.11 2.6 1,699

United Online, Inc. UNTD NasdaqGS USD United States 8.11 702.0 NA

UOM O M edia, Inc UOM O OTCBB USD Canada 0.02 1.4 1,086

ValueClick, Inc. VCLK NasdaqGS USD United States 10.51 854.7 450

Velti P lc VEL AIM GBP United Kingdom 3.38 193.2 2

VOIS, Inc. VOIS OTCBB USD United States 0.01 10.0 83

WebM ediaBrands Inc WEBM NasdaqGS USD United States 1.16 43.5 NA

Webzen Inc. KOSE:A069080 KOSE KRW South Korea 12,150.00 128.8 80

Wizzard Software Corporation WZE AM EX USD United States 0.24 15.6 NA

Worlds.com Inc. WDDD OTCBB USD United States 0.12 6.4 NA

XING AG O1BC XTRA EUR Germany 26.90 182.9 NA

YD Online Corp. A052770 KOSE KRW South Korea 6,110.00 82.0 NA

Ynk Korea Inc. A023770 KOSE KRW South Korea 3,120.00 22.3 -

Page 36: Web 2.0 Weekly - May 4, 2010

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Disclaimer

RELEVANT DISCLOSURES APPLICABLE TO: NONE

1. None applicable.

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Each analyst of Mackie Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions 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 Corporation’s Rating System, the distribution of our research to clients and the percentage of recommendations which are in each of our rating categories is 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 Capital Corporation 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 mentioned herein. 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 Capital U.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 and Exchange Commission).

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