SOFTWARE & SERVICES 16 JUNE 2009

DAVID SHORE, CFA, MBA 416.860.6784

WEB 2.O WEEKLY david.shore@researchcapital.com
Arun Thomas (Associate) 416.860.7666

DELL SELLS $3 MILLIO N IN PCS AND ACCESSORIES USING TWITTER

D EL L AN D T W IT T ER – A N E X AM PL E OF CO R P OR A T IO N S U S IN G W E B 2 .0 P L AT F O RM S
Although last week was very quiet on the news front, we thought the following was worth highlighting. An article in the
Silicon Valley Insider (a division of The Business Insider) titled “Twitter sells $3 million of Computers for Dell” has
caught our attention for various reasons. This is of interest in the context of how companies are looking at leveraging
the various W eb 2.0 platforms to promote their brand and sell their products.
Since 2007, the Dell Outlet store has experimented using Twitter to sell its products through exclusive promotions
and coupons that are available only to subscribers to the microblog service. Last week, the company announced that
it has 620,000 followers on the @DellOutlet twitter account. It was able to generate more than $1 million in sales as a
result of its tweets in the last six months. Although, the sales achieved ($3 million in the last two years) is
inconsequential to Dell’s top line (~$61 billion in F2009), the company has used Twitter as another channel to quickly
move inventory that came about from customer returns. Taking this discussion a little further, we think the other
aspect of interest is – will this be a revenue generating opportunity for Twitter (through premium corporate accounts)?
W ith much anticipation in the community to learn about the revenue model for Twitter, this may be an indication of
one such revenue stream (i.e. corporate sales).
W e would also highlight that throughout our W eb 2.0 sessions (attended by various participants in the industry,
including management, developers, venture capitalists, and business consultants), the recurring theme has been
about exploring innovative ways to use W eb 2.0 platforms to share information to increase the overall experience of
employees, suppliers, and customers. (We are holding our fifth Web 2.0 session titled “VC Financing for Web 2.0
Companies: Necessary? Possible? Lessons Learned” today at 12:00 pm at our office on 199 Bay Street, Suite 4500,
Toronto).
On the capital raise front, Sugar Inc. leads: The capital raise from Sugar Inc. for $16 million was the largest deal
for the first two weeks of June, closely followed by W imba and Grab Networks at $12.0 million. All deals, except the
three mentioned above, were less than $10 million. The average value for the first week of June is $5.0 million, below
the average value for May of $6.4 million (excluding the investment in Facebook) on 16 financings. The April average
was $6.2 million on 23 financings.

Financing Activity Last Three Months

160.0 7.0

6.2 6.4
140.0
6.0

120.0
5.0 5.0

100.0

4.0
(US$m)

(US$m)

80.0

3.0

60.0

2.0
40.0

1.0
20.0

0.0 0.0
Apr-09 May-09 (excl FB) Jun-09

Total Average

A mixed price performance week: The companies in our universe had mixed stock price performances over the past
week (for stocks with prices greater than $1) (Figure 6), with 19 companies showing positive returns on the week.
Openwave Systems Inc. (OPW V:NASDAQ) led the group with a 21.7% return, while Tree.com (TREE:NASDAQ) had
the worst return, dropping 26.5% in the week.

This report has been created b y Anal ysts that are emplo yed b y Research Capital Corporation, a Canadian Investment Dealer.
For further disclosures, please see last page of this report.
w w w . r e s e a rc h c a p i t a l . c o m
T o ro n t o 4 1 6 . 8 6 0 . 7 6 0 0 Montreal 514.399.1500 Vancouver 604.662.1800 Calgary 403.265.7400 Regina 306.566.7550
 Page 2

THE WEB 2.0 UNIVERSE

Ninety-tw o public Web 2.0 companies = $53 billion market cap: Our W eb 2.0 universe contains 92 companies, with a
combined market cap of approximately $53.4 billion (Figure 1). The average market cap for the group is ~$581 million (but
a median of only $46.3 million), with average trailing revenue of $152 million (median $54.3 million). The companies are
also generally profitable, with a median EBITDA margin of 15.3%. On a valuation basis, the overall average is 5.3x trailing
revenue (median 1.9x) and 10.2x trailing EBITDA (median 9.6x). Fourteen of the companies have more than 500
employees.
C omparable C ompany A nalys is > W eb 2.0
Trading Current U S D Market U S D LT M To tal US D L TM T otal E BITDA T E V/LT M TE V /L TM
C om pany Nam e L TM as of T ic ker E xch ang e Cu rrenc y HQ P ric e C ap ($m) R ev ($m) E B ITDA ($m) % R evenu e E BITD A E mplo yees
Acce le riz e N ew Me dia, Inc. 3 /31 /200 9 AC LZ OT C B B USD U nited S ta tes 0 .35 9 .7 4.1 (4 .4) NM 3.5x - 11
Actoz S of t C o., L td. 3 /31 /200 9 A0 527 90 K OS E KR W S outh K orea 27 250 18 4.9 91. 6 1 9.9 21 .7% 1.7x 7. 8x NA
AQ Inte ractive , Inc. 3 /31 /200 9 38 38 TSE JPY J apan 76 800 4 2.6 63. 1 4 .0 6 .3% 0.2x 3. 6x NA
As s ocia ted Media H oldings Inc. 6 /30 /200 7 AS MH OT C P K USD U nited S ta tes 0 .02 0 .9 0.1 (2 .3) NM 1 9.2 x - 3
Bigstring Corp. 3 /31 /200 9 BS GC OT C B B USD U nited S ta tes 0 .03 1 .5 0.1 (2 .0) NM 3 9.0 x - 4
Be tawave Corpora tion 3 /31 /200 9 B W AV OT C B B USD U nited S ta tes 0 .10 2 .9 8.4 (1 2.6) NM - - 53
Be yond Commerce, Inc. 3 /31 /200 9 B Y OC OT C B B USD U nited S ta tes 0 .91 4 0.4 7.1 (9 .5) NM 6.3x - 69
Bright T hings plc 9 /30 /200 8 AIM :BG T AIM GBP U nited K ingdom 0 .02 4 .8 0.3 (1 .8) NM 1 7.6 x - 9
Broa dW ebAs ia Inc. 9 /30 /200 8 BW BA OT C P K USD U nited S ta tes 0 .23 1 9.5 0.0 (4 .6) NM - - 46
C D C C orp. 3 /31 /200 9 C HIN .A N as da qG S USD H ong K ong 1 .55 16 4.4 389 .9 3 0.8 7 .9% 0.5x 5. 8x NA
C ha ngyou. com Limite d 3 /31 /200 9 C Y OU N as da qG S USD C hina 38 .61 2,1 23.6 222 .5 13 5.1 60 .7% 8.7x 14 .3x 6 28
C hina G ate wa y C orpora tion 9 /30 /200 8 C GW Y OT C P K USD U nited S ta tes 0 .02 0 .4 6.7 (6 .6) -9 8.9% 0.1x - 37
C hine s e G amer International 3 /31 /200 9 G T S M:308 3 GTSM TWD T aiwan 312 .00 79 7.0 56. 1 3 1.4 56 .0% 1 3.0 x 23 .3x NA
C ornerW orld C orporation 1 /31 /200 9 C WR L OT C B B USD U nited S ta tes 0 .07 4 .5 1.3 NM NM 4.6x - NA
C yberplex Inc. 3 /31 /200 9 T S X:C X TSX C AD C ana da 1 .80 9 9.8 71. 7 7 .4 10 .3% 1.3x 12 .9x NA
DAD A S pA 3 /31 /200 9 C M:D A CM EUR Ita ly 6 .00 13 4.1 231 .6 4 3.0 18 .6% 0.8x 4. 3x 5 78
DXN Holdings B hd 2 /28 /200 9 D XN KL SE MY R Ma la ys ia 0 .40 2 6.1 78. 4 1 0.8 13 .7% 0.5x 3. 9x NA
Dibz Inte rnational, Inc. NA D IB Z OT C P K USD U nited S ta tes 0 .00 0 .0 NA NM NM - - NA
DigitalP ost Inte ra ctive , Inc. 3 /31 /200 9 D G LP OT C B B USD U nited S ta tes 0 .02 1 .6 0.7 (2 .6) NM 4.5x - 7
DigitalT own, Inc. 2 /28 /200 9 DGT W OT C B B USD U nited S ta tes 2 .50 6 7.7 NM (3 .0) NM - - 3
Dolphin D igital Me dia, Inc. 3 /31 /200 9 D P DM OT C B B USD U nited S ta tes 0 .53 2 7.4 0.8 (3 .7) NM 3 6.7 x - NA
E olith C o. L td. 1 2/31 /200 8 A0 410 60 K OS E KR W S outh K orea 760 .00 4 3.8 14. 6 (3 .5) -2 3.6% 3.1x - NA
E xte ns ions , Inc. 3 /31 /200 9 E XT I OT C P K USD U nited S ta tes 0 .15 1 4.2 NM NM NM - - 2
F inancia l Media G roup, Inc. 2 /28 /200 9 F NG P OT C B B USD U nited S ta tes 0 .00 0 .3 7.2 2 .4 34 .1% - - 22
F luid M us ic Ca nada, Inc. 3 /31 /200 9 T S X:F MN TSX C AD U nited S ta tes 0 .75 3 4.7 5.0 (6 .9) NM 5.2x - NA
F rogs te r Interactive P icture s AG 1 2/31 /200 8 F RG XT R A EUR G ermany 7 .98 2 5.9 3.2 (6 .0) NM 7.6x - NA
G a ma nia D igital E ntertainment C o., L td. 3 /31 /200 9 61 80 GTSM TWD T aiwan 55 .60 25 6.5 125 .9 2 0.9 16 .6% 1.9x 11 .2x NA
G a me On C o L td. 3 /31 /200 9 38 12 TSE JPY J apan 114 300 11 2.8 75. 1 1 7.8 23 .7% 0.7x 3. 0x NA
G e oS e ntric O yj 3 /31 /200 9 G E O1 V H LS E EUR F inland 0 .04 4 9.5 5.8 (1 5.1) NM 7.8x - 1 08
G iant Intera ctive G roup, Inc. 3 /31 /200 9 GA NYSE USD C hina 8 .24 1,8 58.9 218 .8 NM NM - - NA
G iga Media Ltd. 3 /31 /200 9 G IG M N as da qG S USD T aiwan 5 .53 29 8.8 183 .6 NM NM 1.2x - NA
G ravity C o., L td 9 /30 /200 8 GR VY N as da qG M USD S outh K orea 1 .10 3 0.6 38. 8 7 .5 19 .2% - - 6 36
G ree, Inc. 6 /30 /200 8 T S E : 363 2 TSE JPY J apan 6 130 1,3 97.1 30. 0 1 0.8 36 .0% 4 3.9 x - NA
G ungH o O nline E ntertainment, Inc. 3 /31 /200 9 37 65 OS E JPY J apan 225 000 26 3.0 105 .2 1 8.9 18 .0% 2.2x 12 .4x NA
H anbitS of t, Inc. 3 /31 /200 9 A0 470 80 K OS E KR W S outh K orea 4 720 8 2.0 54. 7 (1 4.7) -2 6.8% 1.2x - NA
IAC /InterActiveC orp. 3 /31 /200 9 IAC I N as da qG S USD U nited S ta tes 16 .29 2,4 58.4 1 ,40 6.4 4 2.6 3 .0% 0.4x 13 .5x 3, 200
IAS E nergy, Inc. 1 /31 /200 9 IAS C.A OT C B B USD C ana da 0 .23 1 6.1 0.0 (0 .8) NM - - NA
is ee media Inc. 3 /31 /200 9 IE E T S XV C AD C ana da 0 .08 3 .4 1.5 (4 .8) NM 1.6x - NA
J umbuck E ntertainment P ty Ltd. 1 2/31 /200 8 AS X:J MB AS X AU D Aus tra lia 0 .40 1 5.7 14. 2 5 .3 37 .2% 0.8x 2. 0x 72
J umpT V Inc. 3 /31 /200 9 T S X:J T V TSX C AD C ana da 0 .73 7 3.1 18. 1 (1 2.0) -6 6.6% 3.4x - 2 37
K A B Dis tribution Inc. 3 /31 /200 9 T S X:K AB TSX C AD C ana da 0 .62 7 6.4 72. 5 8 .6 11 .9% 1.1x 9. 5x NA
K ings oft Co. Ltd. 3 /31 /200 9 38 88 S E HK HKD C hina 5 .23 73 2.1 129 .0 5 1.9 40 .3% 5.2x 12 .9x 2, 271
Lingo Media Corporation 3 /31 /200 9 T S XV : LM T S XV C AD C ana da 1 .13 1 2.8 0.9 (1 .6) NM 1 3.0 x - NA
Live World Inc. 3 /31 /200 9 LV WD OT C P K USD U nited S ta tes 0 .10 3 .1 11. 4 (0 .0) -0 .4% 0.2x - NA
LookS mart, Ltd. 3 /31 /200 9 LOOK N as da qG M USD U nited S ta tes 1 .35 2 3.1 60. 7 (3 .8) -6 .3% - - 90
Magnitude Information S ys tems Inc. 3 /31 /200 9 MA G Y OT C B B USD U nited S ta tes 0 .01 5 .5 0.1 (3 .1) NM - - 14
Mixi, Inc. 3 /31 /200 9 21 21 TSE JPY J apan 460 000 72 1.7 123 .0 4 3.6 35 .4% 4.9x 13 .9x NA
Mode rn Times G roup Mtg AB 3 /31 /200 9 MT G B OM S EK S weden 216 1,8 01.8 1 ,70 4.0 26 1.0 15 .3% 1.4x 9. 0x 2, 969
Moggle , Inc 3 /31 /200 9 MMOG OT C B B USD U nited S ta tes 2 .30 8 3.5 NM NM NM - - 3
MOK O.mobi L imited 1 2/31 /200 8 MK B AS X AU D Aus tra lia 0 .05 3 .5 1.1 (2 .3) NM 2.1x - NA
Myriad G roup AG 1 2/31 /200 8 MY R N SWX C HF S witzerla nd 5 .15 10 0.3 40. 0 0 .8 1 .9% 2.8x - 4 05
NE OW IZ G ames C orpora tion 1 2/31 /200 8 A0 956 60 K OS E KR W S outh K orea 65 900 50 2.9 196 .3 5 2.7 26 .8% 2.5x 9. 4x NA
NetD ragon W ebS oft, Inc. 3 /31 /200 9 77 7 S E HK HKD C hina 5 .00 34 1.0 86. 9 3 4.4 39 .5% 2.3x 5. 8x 2, 426
Nete as e.com I nc. 3 /31 /200 9 NT E S N as da qG S USD C hina 35 .04 4,3 11.8 470 .2 30 5.6 65 .0% - - NA
NeXplore Corpora tion 9 /30 /200 7 N XP C OT C P K USD U nited S ta tes 0 .70 3 9.0 NM (4 .9) NM - - 19
Ngi G roup Inc. 1 2/31 /200 8 24 97 TSE JPY J apan 36 100 4 5.5 100 .3 3 0.9 30 .8% - - NA
Northgate Te chnologies L imited 3 /31 /200 9 59 005 7 BS E INR India 42 .05 3 0.6 117 .0 (2 7.5) -2 3.5% 0.3x - NA
Open T e xt Corp. 3 /31 /200 9 OT E X N as da qG S USD C ana da 35 .67 1,8 77.1 782 .6 19 9.2 25 .5% 2.5x 9. 8x 3, 400
Openwave S ys tems Inc. 3 /31 /200 9 OP W V N as da qG S USD U nited S ta tes 2 .30 19 1.6 197 .2 (2 .1) -1 .0% 0.4x - 6 30
P e rf ect W orld C o., Ltd. 3 /31 /200 9 PW R D N as da qG S USD C hina 24 .35 1,2 45.2 228 .0 12 4.5 54 .6% 0.1x 0. 2x NA
Quepa s a C orp. 3 /31 /200 9 QP S A N as da qC M USD U nited S ta tes 0 .62 7 .9 0.1 (1 0.8) NM - - 74
OA O R B C Information S ys tems 1 2/31 /200 7 R BC I R TS USD R us s ia 1 .00 13 8.7 151 .4 1 9.8 13 .1% 0.0x 0. 2x NA
S handa Interactive E ntertainme nt L td. 3 /31 /200 9 S N DA N as da qG S USD C hina 54 .40 3,7 74.4 569 .7 26 0.7 45 .8% 0.1x 0. 2x NA
S hutte rf ly, Inc. 3 /31 /200 9 S F LY N as da qG S USD U nited S ta tes 13 .47 33 9.1 215 .2 2 8.3 13 .2% 1.3x 9. 7x 5 14
S K C ommunications Co., Ltd. 1 2/31 /200 8 A0 662 70 K OS E KR W S outh K orea 11 000 36 5.5 182 .5 1 1.9 6 .5% 2.0x 30 .8x NA
S N AP Inte ra ctive , Inc. 3 /31 /200 9 S T VI OT C B B USD U nited S ta tes 0 .70 7 .6 3.3 0 .9 28 .0% 1.9x 6. 6x 11
S N M G lobal H oldings 9 /30 /200 8 S N MN OT C P K USD U nited S ta tes 0 .00 0 .0 2.0 (0 .7) -3 4.8% 1.1x - 33
S ocia l Media V e nures , Inc. 1 2/31 /200 8 S MV I OT C P K USD U nited S ta tes 0 .01 0 .0 0.1 (0 .1) -6 0.5% 0.0x - NA
S ocia lwis e, Inc. 3 /31 /200 9 S C LW OT C B B USD U nited S ta tes 0 .70 3 0.3 0.0 (4 .8) NM - - NA
S ohu. com Inc. 3 /31 /200 9 S OH U N as da qG S USD C hina 65 .91 2,5 22.0 460 .0 20 0.5 43 .6% 4.7x 10 .7x 3, 197
S ite s earch C orporation 4 /30 /200 9 S TPC OT C B B USD U nited S ta tes 3 .50 2 8.2 NM (1 .1) NM - - 15
S park Networks , Inc. 3 /31 /200 9 LOV AME X USD U nited S ta tes 2 .25 4 6.3 54. 3 1 1.8 21 .7% 0.9x 4. 0x 1 83
S pectrumDN A, Inc. 3 /31 /200 9 S P XA OT C B B USD U nited S ta tes 0 .20 9 .7 0.1 (2 .6) NM - - 7
T encent Holdings L td. 3 /31 /200 9 70 0 S E HK HKD C hina 89 .20 20,7 58. 8 1 ,20 2.8 57 6.3 47 .9% 1 8.8 x 39 .2x 6, 194
T he P arent C ompany 8/2/2008 K ID S .Q OT C P K USD U nited S ta tes 0 .03 0 .8 112 .0 (1 3.5) -1 2.0% 0.2x - 3 47
T he 9 L imited 1 2/31 /200 8 N CT Y N as da qG S USD C hina 10 .46 28 0.5 249 .7 8 4.1 33 .7% - - NA
T he S treet.com, Inc. 3 /31 /200 9 TSCM N as da qG M USD U nited S ta tes 2 .10 6 4.3 67. 0 1 .9 2 .9% - - 3 10
T otal S port Online A S 3 /31 /200 6 T OS O OT C NO NOK N orwa y 0 .03 0 .1 2.1 (1 .0) -5 0.6% 4.6x - 16
T ree.C om, Inc. 3 /31 /200 9 TR EE N as da qG M USD U nited S ta tes 8 .74 9 4.4 215 .6 (1 3.3) -6 .2% 0.4x - 7 00
U nis erve C ommunications Corp. 2 /28 /200 9 T S XV : US S T S XV C AD C ana da 0 .05 1 .1 22. 9 0 .1 0 .2% 0.2x - NA
U nited Online Inc. 3 /31 /200 9 U NT D N as da qG S USD U nited S ta tes 6 .54 54 6.6 811 .2 17 7.3 21 .9% 1.0x 4. 7x 1, 469
U OMO Media , Inc 1 /31 /200 9 U OMO OT C B B USD C ana da 0 .17 1 4.1 0.6 (0 .5) -7 8.2% 2 2.8 x - NA
Va lueC lick Inc. 3 /31 /200 9 V C LK N as da qG S USD U nited S ta tes 12 .05 1,0 48.0 591 .7 10 5.5 17 .8% 1.6x 8. 9x 1, 189
VO IS , Inc. 3 /31 /200 9 V OIS OT C B B USD U nited S ta tes 0 .35 2 .9 0.0 (1 .1) NM - - 4
W ebze n Inc. 3 /31 /200 9 W ZE N N as da qG M USD S outh K orea 3 .40 4 0.3 22. 8 (0 .4) -1 .9% - - 3 14
W iz za rd S of twa re Corpora tion 3 /31 /200 9 W ZE AME X USD U nited S ta tes 0 .65 3 1.1 5.6 (5 .3) -9 4.5% 5.8x - 1 10
W orlds .com Inc. 3 /31 /200 9 W DD D OT C B B USD U nited S ta tes 0 .09 4 .7 0.0 (0 .8) NM - - 1
W ynds torm C orporation NA W YND OT C B B USD U nited S ta tes 0 .51 9 .2 NA NM NM - - NA
XIN G AG 3 /31 /200 9 O1B C XT R A EUR G ermany 33 .80 24 5.7 52. 2 1 6.3 31 .2% 3.7x 11 .9x 2 39
Ye dangOnline Corp. 1 2/31 /200 7 A0 527 70 K OS E KR W S outh K orea 9 290 11 5.6 54. 4 1 2.2 22 .4% 2.3x 10 .4x NA
Ynk K orea Inc. 1 2/31 /200 8 A0 237 70 K OS E KR W S outh K orea 6 400 2 7.1 11. 3 1 .2 10 .5% 2.3x 22 .1x NA
ZipLocal Inc. 3 /31 /200 9 T S XV : ZIP T S XV C AD C ana da 0 .01 0 .4 2.7 (2 .1) -7 8.3% 0.6x - NA
H igh 20,7 58. 8 1 ,704 .0 57 6.3 65 .0% 4 3.9 x 39 .2x 6,1 94
Low 0 .0 0.0 -27.5 -9 8.9% 0.0x 0. 2x 1
Avera ge 581.4 152.1 33.1 7.1% 5.3x 10. 2x 671
Median 4 6.3 54. 3 0 .8 15 .3% 1.9x 9. 6x 2 37

Figure 1. Web 2.0 Universe Summary

Source. Capital IQ
 Page 3

C A P I T A L M A R K E T S A C T I V I T Y (M & A A N D F I N A N C I N G )
June month-to-date capital raise totals $79.5 million: Total capital raised two weeks into June was $79.5 million on a
total of 15 transactions. It was led by Sugar Inc. raising $16.0 million, closely followed by W imba and Grab Networks
raising $12.0 million. All other transactions were less than $10 million. The average value for the month-to-date is $5.0
million, below the average value for May of $6.4 million (excluding the $200 million investment in Facebook) on 16
financings. The April average was $6.2 million on 23 financings.

Financing Activity Last Three Months

160.0 7.0

6.2 6.4
140.0
6.0

120.0
5.0 5.0

100.0

4.0
(US$m)

(US$m)
80.0

3.0

60.0

2.0
40.0

1.0
20.0

0.0 0.0
Apr-09 May-09 (excl FB) Jun-09

Total Average

Figure 2. Financings, Last Three Months

Source. Company reports

Sugar Inc. leads capital raise: The capital raise from Sugar Inc. for $16 million was the largest deal for the first two
weeks of June. Three of the 15 deals in the month were greater than $10 million. For additional details, see Figures 22 and
23 (at end of note).
 Page 4

Financing & M/A Summary - Last Three Months

250.0

200.0

150.0

Jun-09
(US$m)

May-09
Apr-09

100.0

50.0

0.0

AdEx Media
Mixercast
Collective Media

Marin Software

EveryZing

VoxPop
Cyberplex

Jaxtr
OpenX

OLX

Socialtext

TubeMogul
GOOM Radio

Viximo

IMShopping

RingRevenue

YuMe
Tribal Nova
Grab Networks

I Love Rewards

Medialets

Resonate Networks

Mo'Minis

Brandtology
Gather

DoubleTwist

Inigral
Peer39

Cellufun

Batanga

DocuSign

SoundCloud

my6sense

Tripbase

Jodange
Picaboo

Foodista
Facebook

Zoosk
Azuki Systems

Loop'd Network

MashLogic
Sugar Inc.

The Rubicon Project

Conductor Inc.

ScanScout
beeTV

BlogHer Inc.
Gist
Fuhu Inc.

Cliqset
Socialcast

Scan & Target

StumbleUpon

TimeBridge

GameGround
One Net Entertainment

Imeem
FreeWheel

WonderHill
Wimba

Figure 3. Capital Market Activity, Last Three Months

Source. Company reports

Social Network remains the most active sector in dollars raised, while Ad Network remains the most active in
number of transactions: Following recent trends, Social Networks as a sector saw the most activity in dollars raised
($234.8 million), largely attributed to the $200 million investment by Digital Sky Technologies in Facebook. However, it
was the Ad Network sector that saw the most transactions (13), raising $103.7 million (Figure 4). The Media sector has
the next highest totals, with six companies raising $45.8 million. The following sectors continue to generate the most
capital activity over the last few months: Ad Network, Media, Gaming, and Social Networks.
 Page 5

Capital Market Activity by Sector - Last Three Months

250.0

200.0

150.0
(US$m)

234.8

100.0

50.0 103.7

45.8
33.0 30.2 24.0 23.0 18.3 17.0 14.5 10.4 9.0
0.0 6.8 5.9 4.7 4.4 2.0 2.0 1.3 1.0
Comment/Reputation

Social Commerce
Gaming

Travel
Media

Collaboration

Enterprise

Mobile

Publishing
Widget
Blog

Search

Infrastructure
Social Networks

SAS
Video

Virtual World

Aggregation
Ad Network

Analytics
# companies

10 13 6 5 2 2 2 2 3 3 2 3 1 1 1 2 1 1 1 1

Figure 4. Capital Market Activity, by Sector, Last Three Months

Source. Company reports

C A P I T A L M A R K E T S A C T I V I T Y (P R I C E P E R F O R M A N C E )
Web 2.0 index outpaces NASDAQ recovery: Our W eb 2.0 index (market-cap weighted) essentially mirrored the
performance of the NASDAQ composite index from mid-2008 until recently. However, the index has recently had a much
stronger recovery relative to the NASDAQ index (Figure 5).

Web 2.0 Index Price Performance

96.38

86.38

76.38

66.38

56.38

46.38

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

Figure 5. Web 2.0 Price Performance

Source. Capital IQ

A mixed price performance week: The companies in our universe had mixed stock price performances over the past
week (for stocks with prices greater than $1) (Figure 6), with 19 companies showing positive returns on the week.
Openwave Systems Inc. (OPW V:NASDAQ) led the group with a 21.7% return, while Tree.com (TREE:NASDAQ) had the
worst return, dropping 26.5% in the week.
 Page 6

1 Week Price Performance

Openw ave S ys tems Inc. 21.7%
Cyberplex Inc. 20.0%
Ngi Group Inc. 12.8%
Eolith Co. Ltd. 8.6%
XING A G 8.3%
TheS treet.com, Inc. 8.2%
Perfect World Co., Ltd. 7.6%
DA DA S pA 5.3%
CDC Corp. 4.0%
Open Tex t Corp. 3.8%
V alueClick Inc. 3.7%
My riad Group A G 3.0%
A Q Interactive, Inc. 2.4%
Modern Times Group Mtg A B 1.6%
LookS mart, Ltd. 1.5%
Mix i, Inc. 1.1%
IA C/InterA ctiveCorp. 0.5%
S hutterfly, Inc. 0.1%
S K Communic ations Co., Ltd. 0.0%
Changyou.com Limited -0.2%
Gamania Digital Entertainment Co., Ltd. -0.4%
Tencent Holdings Ltd. -0.4%
HanbitS oft, Inc. -1.5%
S ohu.com Inc. -1.5%
GameOn Co Ltd. -2.1%
S park Netw orks , Inc. -2.6%
Y edangOnline Corp. -3.9%
Gravity Co., L td -4.3%
Gree, Inc. -4.7%
K ings oft Co. Ltd. -4.7%
United Online Inc. -5.6%
NetDragon WebS oft, Inc. -5.8%
The9 Limited -5.9%
Neteas e.c om Inc. -6.5%
NEOWIZ Games Corporation -7.8%
Y nk K orea Inc. -8.6%
Giant Interactive Group, Inc. -8.7%
GigaMedia Ltd. -10.2%
S handa Interactive Entertainment Ltd. -11.7%
Chines e Gamer International -14.8%
Webz en Inc. -15.3%
A ctoz S oft Co., Ltd. -16.2%
Northgate Technologies Limited -22.4%
OA O R B C Information S ys tems -25.9%
Tree.Com, Inc. -26.5%
-30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0%

Figure 6. 1-Week Price Performance

Source. Capital IQ

INDUSTRY NEWS (PARTNERSHIPS, FINANCIAL RESULTS, NEW PRODUCTS)
K ey Developments
C ompany
K ing s oft Co . Ltd. (S E HK: 3888)
Northgate Tec hno logies Limited
(B S E :590057)
G igaMedia L td. (Nas daqG S : G IG M)
IB 3 Networks , Inc. (OT CB B: IB NW );
iB eam S o lu tions L LC
G igaMedia L td. (Nas daqG S : G IG M)
T heS treet.c om, Inc . (Nas daqG M: T S CM) T heS treet.com I nc. D ecl are s Q uarterly D ividend, P a ya ble T heS treet. com Inc. announced tha t its boa rd of directors ha s decla red the compa ny's quarterly ca sh dividend on its common stoc k. T he
A OL, L LC ; IAC /InterActiveCorp.
(Nas daqG S : IACI)
S ites earc h Co rporation (OT CB B :S T P C) S ites ea rch C orp. R eports E arnings R es ults for the
W izz ard S oftware Co rporation
(A ME X: WZE )
W izz ard S oftware Co rporation
(A ME X: WZE )
V OIS , Inc . (OTC BB :VOIS )
IB 3 Networks , Inc. (OT CB B: IB NW );
iB eam S o lu tions L LC
T heS treet.c om, Inc . (Nas daqG M: T S CM) T heS treet.com, Inc., $ 0. 025, Ca s h Div idend, J un-12-
G ravity Co., L td (N as daqG M: G R VY )
Figure 7. Key Developments
Source. Capital IQ
Headline
K ings oft to L aunc h T -800 T erminator-S ha ped F la sh D isk
Northga te T echnologies Limited Appo ints B S R a nd
Company as S tatu tory Auditor R eplacing P rice
W a terhous e
G igaMedia I n T alks
IB 3 N etwork s I nc. a nd iB ea m S olutions LL C S igns T hree IB 3 Network s I nc. and its wholly owned s ubsidiary iB eam S olutions L LC a nnounc ed that it rec ently finalized a multi-thous and dolla r three
Y ear S ervice C ontra ct with Millennium B usines s
S olutions
G igaMedia L td. R eports Un-Audi ted Cons olidated
E a rnings R esults for the F irst Q uarter E nded M arch 31,
2009 ; R eports Impa irment Los s
on J une 30, 2009
IAC Might S how I nteres t I n AO L
Q uarter E nded April 30, 2009
W izz ard S oftwa re C orporati on, Annual G eneral Meeting,
J un 10, 2009
W izz ard S oftwa re I ntroduces N ew iP hone App and
L aunches App M a rketing V ia P odc as ts
V O IS , Inc. ha s filed a S helf R egistration in the amount of V O IS , Inc. ha s filed a S helf R egistration in the amou nt of $1.75 million.
$1.75 million.
iB 3 N etwork s R ec eives C ontract F rom L anca ster
Community C hurch
2009
G ravity Co. , Ltd, S pec ial/E x tra ordinary S hareholders
Meeting, J un 12, 2009
Page 7
Notes
K ingsoft C o. Ltd. is on the point of rolling out an a nti-virus s oftwa re-embedded 2G flas h dis k in the shape of the c las sic T -800 T erminator in
T he T ermina tor s eries. T he B eijing-based s oftware developer will have its spark ling a nti-virus software preins ta lled in the flash disk ,
disclosed s ources , noting that us ers will have a cc es s to the K ings oft software for four y ears . T he flas h disk s will c ome into the ma rk ets in
B eijing a nd S ha ngha i when the long-expec ted s cience-fic tion movie T ermina tor S al vation is put up on show throughout the country on J une
9, 2009, with onl y 2,018 ava ila ble for s a le.
Northga te Technologies Limited appointed B S R and C ompa ny, a n Indian a s soc iate of K P M G , as s tatutory auditors of the compa ny. T he
company has a ppointed B S R a nd compa ny to fi ll the va ca nc y c aused by the res igna tion of P ric e W aterhouse, C ha rtered Ac countants.
G igaMedia L td. reported firs t-qua rter rev enues of $44. 4 million, net income of $4.8 million, and earnings per s hare of $0.09 basic a nd $0. 08
fully -diluted. T he company als o a nnounced tha t it is final round dis cuss ions with two parties concerning a potentia l s tra tegic partnership or
sale involv ing its pok er and ca sino software bus ines s. N o a dditiona l details a re av ailable at this time.
yea r service co ntrac t with M illennium B us ines s S olutions .
G igaMedia L td. reported un-a udited cons olidated ea rnings res ults for the first qua rter ended M a rch 31, 2009. F or the qua rter, the c ompany's
cons olidated revenues decrea s ed 13% to $44. 4 million from $51.2 million in the s ame period of 2008, a nd held s tea dy c ompa red with the
fourth qua rter of 2008. The year-period decrease wa s prima rily due to lower contributions from the compa ny 's ga ming software busines s
reflec ting the impac t of the globa l economic downturn on play er s pending in the indus try, with depreciation of the euro agains t the U .S . dolla r
increa s ing play ing cos ts , res ulting in decreas ed play er s pending. C onsolidated income from opera tions for the firs t quarter wa s $5. 4 million
compared to $12.7 million in the first quarter of 2008 a nd $7.9 million in the fourth qua rter of 2008. T he y ear-over-y ear decrea s e in
cons olidated income from opera tions reflected the a forementioned revenue decreas e and lower gros s profit ma rgin on c ha nged revenue mix
during the period, whic h des pite fl a t opera ting expens es, yielded a decrea se in the company 's cons olidated opera ting ma rgin to 12.2% . The
quarter-ov er-quarter decrea s e i n consolida ted income from operations wa s prima rily the result of lower gros s profit, as well as a n increa s e in o
cas h div idend of $0.025 per s ha re of common s tock will be pa ya ble J une 30, 2009, to all s hareholders of rec ord a t the clos e of busines s on
J une 15, 2009.
It was recently reported tha t I AC /InterAc tiv eC orp might be interested i n buy ing into AO L, LL C. I AC’ s chairma n, B a rry D iller s a id the T ime
W a rner online service, whic h is openly for sa le, is a “tremendous ly va luable property’’. H e a dded, “Not the A O L dialup stuff, of c ours e, but it
has done a wonderful job on the media s ide. I t ha s built up a ton of really good growing s ites . ” “D epending on how much the hang i s, we’d
definitely be i nteres ted in it, ’’ D iller s a id, referring to the cos t of the ac quis ition.
S ites ea rch C orporation reported ea rnings res ults for the quarter ended A pril 30, 2009. The company reported a net los s of $303,451. In
contrast, the compa ny posted a net los s of $221, 450 for the same qua rter in the previous y ea r.
W izza rd S oftwa re C orporation, A nnual G eneral Meeting, J un 10, 2009, at 14:00 E as tern Da y light. Loca tion: Ma rriott C ourty ard, 5308 Liberty
Ave. , P itts burgh, P A 15224,U nited S tates . Agenda: T o elec t five directors to s erve unti l the nex t annual meeting of s tock holders, or until their
suc ces s ors a re duly elec ted a nd qualifi ed; to approve 2009 s tock option plan; to a pprove the is sua nc e of unregistered and res tricted s tock to
cons ulta nts ; to ra tify the s elec tion by the B oa rd of Directors of G regory & As s ocia tes L LC a s independent auditors of Wiz za rd for the fisca l
yea r ending D ecember 31, 2009; a nd to trans a ct such other busines s a s ma y properly come before the annual meeting and a ny a nd all
a djournments or postponements thereof.
W izza rd S oftwa re C orporation a nnounc ed the a cquis ition of a new iP hone App and the mark eting launc h of its recently a cquired Apps via
podca s ts a nd the I nternet. I t a cquired the dis trib ution rights to S uper M a stermind, a high quality App pois ed for sa les growth through the
company's podca s t ma rk eting and distribution network ta rgeti ng iP hone a nd iP od T ouch users . W iz zard has focus ed its rec ent acquis ition
efforts on Apps that cross a wide ra nge of cons umer interests and ma tc h up well with targeted podca st audi ences . The c ompany pla ns to
ma rk et the Apps i n targeted podca s ts. T he company believes the new price point for the iP hone wi ll c ause more people to s elect the
pla tform, increa s ing audi ences for the podca s ts on the W iz za rd Media Network and adding potential cons umers for new Apps.
IB 3 Network s I nc. and its wholly owned s ubsidiary iB eam S olutions L LC a nnounc ed that it has been retained by L anca ster C ommunity
Churc h. The contrac t inc ludes complete des ign a nd ins ta lla tion of a new network to s upport the organiz ati on's growth. iB ea m S olutions ha s
been hired by L anca s ter C ommunity Church to insta ll c abling, network s ervers and phones and als o inc ludes a contra ct for on going monthly
support for the next 12 months c overing their I T needs going forwa rd.
T heS treet. com, I nc., $ 0.025, Ca s h D ividend, J un-12-2009
G ravity Co. , Ltd, S pecial/E xtra ordinary S hareholders M eeting, J un 12, 2009, at 01: 00 G M T T ime. L oc ation: Nuritk um S qua re B usines s T ower
15F, 1605 S a nga m-Dong, M a po-G u, S eoul 121-270,S outh K orea. Agenda : T o consider a ppointment of director a nd to c onsider approval of
a mendment of Artic les of I ncorpora tion.
 Page 8

VALUATION
Online Gaming companies lead market-cap charts: Eleven companies in our W eb 2.0 universe top US$1 billion in
market capitalization (Figure 8). Fifty-nine of the 92 companies have market caps under US$100 million, with 26 under
US$10 million. Online gaming companies dominate the top of the list, led by Tencent Holdings with a market cap over
US$18 billion.

Market C ap (US D m)
Tencent Holdings L td.
Neteas e. c om Inc.
S handa Interac tive Entertainment L td. 3774. 4
S ohu. c om Inc. 2522. 0
IA C/InterA ctiveCorp. 2458. 4
Changy ou. com L imited 2123. 6
Open Tex t Corp. 1877. 1
G iant Interac tive Group, Inc. 1858.9
Modern Times G roup Mtg A B 1801. 8
Gree, Inc. 1397. 1
Perfec t World Co. , L td. 1245.2
V alueClick Inc. 1048. 0
Chines e Gamer International 797.
K ings oft Co. L td. 732. 1 0
Mix i, Inc. 721.7
United Online Inc. 546.6
NEOWIZ Games Corporation 502. 9
S K Communications Co. , L td. 365. 5
NetDragon WebS oft, Inc. 341. 0
S hutterf ly , Inc. 339. 1
GigaMedia L td. 298. 8
The9 L imited 280. 5
G ungHo Online Entertainment, Inc. 263. 0
Gamania Digital Entertainment Co. , L td. 256. 5
XING A G 245. 7
Openw ave S y s tems Inc. 191. 6
A c toz S of t Co. , L td. 184. 9
CDC Corp. 164. 4
OA O R B C Inf ormation S ys tems 138. 7
DA DA S pA 134. 1
Y edangOnline Corp. 115. 6
G ameOn Co L td. 112. 8
My riad Group A G 100. 3
Cy berplex Inc. 99. 8
Tree. Com, Inc. 94.4
Moggle, Inc 83. 5
HanbitS oft, Inc. 82. 0
K A B Dis tribution Inc. 76. 4
J umpTV Inc. 73. 1
DigitalTow n, Inc. 67. 7
TheS treet.c om, Inc. 64. 3
GeoS entric Oy j 49.5
S park Netw orks , Inc. 46.3
Ngi G roup Inc. 45.5
Eolith Co. L td. 43. 8
A Q Interactive, Inc. 42. 6
B ey ond Commerc e, Inc. 40. 4
Webz en Inc. 40. 3
NeXplore Corporation 39. 0
Fluid Mus ic Canada, Inc. 34. 7
Wiz z ard S oftw are Corporation 31. 1
Northgate Tec hnologies L imited 30. 6
Gravity Co., L td 30. 6
S ocialw is e, Inc. 30. 3
S ites earch Corporation 28. 2
Dolphin Digital Media, Inc. 27. 4
Y nk K orea Inc. 27. 1
DXN Holdings B hd 26. 1
Frogs ter Interac tive Pic tures A G 25. 9
LookS mart, L td. 23.1
B roadWebA s ia Inc. 19.5
IA S Energy , Inc. 16. 1
J umbuck Entertainment Pty L td. 15. 7
Ex tens ions , Inc. 14. 2
UOMO Media, Inc 14. 1
L ingo Media Corporation 12. 8
S pec trumDNA , Inc. 9. 7
A c celeriz e New Media, Inc. 9. 7
Wynds torm Corporation 9. 2
Quepas a Corp. 7. 9
S NA P Interac tive, Inc. 7. 6
Magnitude Information S y s tems Inc. 5. 5
B right Things plc 4. 8
Worlds . c om Inc. 4. 7
CornerWorld Corporation 4. 5
MOK O. mobi L imited 3. 5
is eemedia Inc. 3. 4
L iveWorld Inc. 3. 1
B etaw ave Corporation 2. 9
V OIS , Inc. 2. 9
DigitalPos t Interac tive, Inc. 1. 6
B igs tring Corp. 1. 5
Unis erve Communications Corp. 1. 1
A s s oc iated Media Holdings Inc. 0. 9
The Parent Company 0. 8
China Gatew ay Corporation 0. 4
ZipLocal Inc. 0. 4
Financ ial Media Group, Inc. 0. 3
Total S port Online A S 0. 1
S NM Global Holdings 0. 0
Dibz International, Inc. 0. 0
S ocial Media V enures , Inc. 0. 0
0 500 1, 000 1, 500 2, 000 2, 500 3, 000 3,500 4, 000

Figure 8. Market Cap Ranking

Source. Capital IQ

TEV/Revenue (LTM) averages 5.3x: The overall average TEV/Revenue (LTM) multiple for our group is 5.3x (versus 5.4x
last week) (Figure 9). One company trades at more than 40x revenue – Gree, Inc. (TSE:3632) at 43.9x – closely followed
 Page 9

by with Dolphin Digital (OTCBB:DPDM) at 39.0x. The median is only 2.0x. Note that we exclude multiples greater than
50x. Twenty-eight companies have multiples under 1.9x.

T E V/L T M R evenue (x)

50. 0
43.9
45. 0
39. 0
40. 0 36.7
35. 0

30. 0

25. 0 22.8
19. 2
18.8
20. 0 17.6

15. 0 13.0
1 3.0

10. 0 7.67. 88.7

6.3
A verage, 5.3
4.54.64.64.74.95.25.25. 8
3.53.7
5. 0 2.32.32.52.52.83.13.4
1.11.21.21.31.31.41.61.61. 71.91.92. 02.12.22. 3
0.00.10.10.10.20.20. 20.20.30. 40.40.40. 50.50.60.70.80.80.91.01.1
0. 0

N E O WIZ G ames C orporation

MO K O .mobi L imited

UO MO Media, Inc
J umbuck E nterta inment P ty L td.

G a mania Digital E ntertainment C o., Ltd.

G ungH o O nline E ntertainment, Inc.

C hines e G amer Interna tional

U nis erve C ommunications C orp.
O AO R B C Information S y s tems

N orthgate T echnologies L imited

DXN Holdings B hd

C ha ngy ou.com L imited

T ree.C om, Inc.

C DC C orp.

G a meO n C o Ltd.

S K C ommunica tions C o., Ltd.

DigitalP os t Intera ctive, Inc.

F luid Mus ic C a nada , Inc.

B ey ond C ommerc e, Inc.

Dolphin Digital Media, Inc.

T he P a rent C ompany

Modern T imes G roup Mtg AB

G eoS entric O y j
S N M G loba l Holdings

C ornerWorld C orporation

Lingo Media C orporation

S handa Interac tive E ntertainment Ltd.

United O nline Inc .

S NAP Intera ctive, Inc.

O pen T ex t C orp.

J umpT V Inc .
C hina G atewa y C orporation

AQ Intera ctive, Inc .

IAC /InterAc tiveC orp.

S pa rk N etwork s , Inc .

G igaMedia Ltd.

C y berplex Inc .

V alueC lic k Inc .

is eemedia Inc .

NetDra gon WebS oft, Inc .

E olith C o. Ltd.

XIN G AG

S ohu.com Inc .
Mix i, Inc .

F rogs ter Intera ctiv e P ic tures AG

T encent Holdings Ltd.

As s ociated Media Holdings Inc .

G ree, Inc .
B right T hings plc
P erfect World C o., Ltd.

L iveWorld Inc .

O penwave S y s tems Inc .

ZipLoca l Inc .

K AB Dis tribution Inc .

H anbitS oft, Inc .

Y edangO nline C orp.

Y nk K orea Inc .

B igs tring C orp.

My riad G roup AG

T otal S port O nline AS

S hutterfly , Inc .

Acceleriz e New Media , Inc .

K ings oft C o. Ltd.

DADA S pA

Ac toz S oft C o. , Ltd.

Wiz z ard S oftware C orporation

Figure 9. TEV/Revenue Ranking
Source. Capital IQ

TEV/Revenue (LTM) by country/exchange: W e have also calculated multiples based on where the companies are listed
or domiciled. Figure 10 shows the average TEV/Revenue multiples by stock exchange. The OTCBB has the largest
number of companies (20), trading at an average multiple of 14.9x (below from 15.6x last week). On a geographic basis,
the United States has the most companies (40), trading at an average of 6.1x revenue (versus 6.3x last week) (Figure 11).
Ten of the companies are Canadian (average 5.2x revenue).

Average TEV/LTM Revenue - By Exchange Average TEV/LTM Revenue - By Country

20.0 17.6 20.0
17.6
18.0 18.0
16.0 14.9 16.0
14.0 14.0
12.4
12.0 12.0 10.4
(x)

10.0
(x)

8.8 10.0
8.0 7.8 7.4 7.8
8.0 6.1 5.7
6.0 5.7 4.6 5.7 5.4 5.2
4.0 3.83.5 3.3 2.8 2.8 6.0
2.2 2.2 1.9 1.4 1.4 4.0
4.6
2.0 0.8 0.5 2.8 2.2 1.4 1.4
0.0 0.4 0.30.0 2.0 0.8 0.5
0.5 0.3 0.0
OTCNO

OTCPK

0.0
OTCBB

GTSM

NasdaqGM
TSE
SEHK
HLSE

OSE
KOSE
NasdaqGS

RTS
OM
CM
XTRA

AMEX

TSX

KLSE

BSE
AIM

TSXV

SWX

ASX

Germany
United
Japan

Finland
United

China

Canada

Malaysia
Hong Kong

India
Russia
Italy
South
Taiwan

Australia
Norway
Switzerland

Sweden

# Companies 1 20 5 3 1 2 2 1 4 10 2 1 4 1 7 14 2 1 1 1 5 1 1
# Companies 1 6 1 40 10 2 3 10 1 1 9 2 1 1 1 1 1 1

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

Source. Capital IQ

TEV/EBITDA (LTM) averages 10.2x: The average multiple for the 34 companies with positive EBITDA (and multiples
under 100x) is 10.2x LTM EBITDA (vs. 10.3 last week), led by Tencent Holding’s (700-SEHK) 39.2x multiple (Figure 12).
Thirteen of the companies have EBITDA multiples under 7x. The median multiple is 9.6x (vs. 9.4x last week).
 Page 10

T E V/L T M E B IT DA (x)

45. 0
39. 2
40. 0

35. 0
30. 8
30. 0

25. 0 23. 3
22. 1

20. 0
14. 3
15. 0 12.9 12. 9 13. 5 13. 9
11.9 12.4
A verage, 10. 2 10. 4 10. 7 11. 2
8. 9 9. 0 9. 4 9. 5 9. 7 9. 8
10. 0 7. 8
5. 8 5. 8 6. 6
3.9 4. 0 4. 3 4. 7
5. 0 3.0 3.6
2. 0
0. 2 0. 2
0. 0

NE O WIZ G ames C orporation

J umbuck E ntertainment P ty Ltd.

G amania Digital E ntertainment C o. , Ltd.

G ungH o O nline E ntertainment, Inc .

C hines e G amer International

O AO R B C Information S y s tems

DXN Holdings B hd

C hangy ou. c om L imited

G ameO n C o L td.

C DC C orp.

S K C ommunic ations C o. , L td.

Modern T imes G roup Mtg AB
S handa Interactive E ntertainment L td.

U nited O nline Inc .

S NAP Interac tive, Inc .

O pen T ex t C orp.
AQ Interac tive, Inc .

S park Network s , Inc.

NetDragon WebS oft, Inc.

V alueC lic k Inc .

S ohu. c om Inc .

C yberplex Inc.

IAC /InterAc tiveC orp.

Mix i, Inc .

T encent Holdings L td.

XING AG
K AB Dis tribution Inc.

Y edangO nline C orp.

Y nk K orea Inc.
S hutterfly , Inc.

K ings oft C o. L td.

DADA S pA

Actoz S oft C o. , L td.

Figure 12. TEV/EBITDA Ranking

Source. Capital IQ

TEV/EBITDA (LTM) by country/exchange: Figure 13 shows the average TEV/EBITDA multiples by stock exchange. The
OTCBB has the largest number of companies (20), trading at an average multiple of 6.6x (vs. 7.2x last week). On a
geographic basis, the United States has the most companies (40), trading at an average of 7.9x EBITDA (Figure 14). Ten
of the companies are Canadian (average 10.7x EBITDA).

Average TEV/LTM EBITDA - By Exchange Average TEV/LTM EBITDA - By Country

25.0 20.0
19.3
18.0 17.2
20.0 16.0
14.0 16.1
15.0 17.2
16.1 12.0
(x)

12.4 11.9 11.9 11.9

(x)

11.2 10.0 10.7

10.0 9.0 7.8 9.0 8.2
6.8 6.6 8.0 7.9
5.8
5.0 4.3 4.0 3.9 6.0
2.0 0.2 4.3
0.0 0.0 4.0 3.9
0.0 2.0 0.2
2.0
OTCBB
GTSM

NasdaqGM
SEHK

KOSE

OSE

NasdaqGS

TSE

RTS
OM

CM
XTRA

TSX

AMEX

KLSE

SWX

0.0 0.0
ASX

Germany

China

Japan

Hong Kong

Malaysia

Russia
Canada

United

Italy
South
Korea

States
Taiwan

Australia
Sweden

Switzerland

# Companies 3 2 7 1 2 4 1 14 5 20 1 2 1 2 1 1 5
# Companies 3 9 2 10 10 1 6 40 1 1 1 2 1 1

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

Source. Capital IQ

P/E (LTM) averages 16.7x: The average multiple for the 30 companies with positive earnings (and multiples under 100x)
is 16.7x LTM EPS (vs. 15.3x last week), led Tencent Holding’s (700-SEHK) 49.8x multiple (Figure 15). Eight of the
companies have P/E multiples under 10x. The median is just 13.8x.
 Page 11

P /E L T M (x)

60.0

49.8
50.0

40.0 36.7

30.7 30.9
29.3 30.3
30.0 27.3 28.1
23.0 23.7
20.9
20.0 A verage, 16.7 16.5
13.3 13.5 14.2 14.2 14.5
11.6 11.9 12.2 12.4
10.1
10.0 6.4
4.4 5.5
2.0 2.0 2.6 2.9

0.0

NE O W IZ G ames C orporation
J umbuck E ntertainment P ty Ltd.

G amania Digital E ntertainment C o., Ltd.

C hines e G amer International

DXN H oldings B hd

C hangy ou.com Limited

G iant Interactive G roup, Inc.

G ameO n C o Ltd.
Modern T imes G roup Mtg AB
Neteas e.com Inc.

S handa Interactive E ntertainment Ltd.

S NAP Interactive, Inc.

Ngi G roup Inc.

O pen T ex t C orp.
C y berplex Inc.

G igaMedia Ltd.

NetDragon W ebS oft, Inc.

S ohu.com Inc.

S park Network s , Inc.

IAC /InterActiveC orp.

Worlds .com Inc.

Mix i, Inc.

T encent H oldings Ltd.

XING AG
P erfect World C o., Ltd.

Y edangO nline C orp.

K ings oft C o. Ltd.

DADA S pA

Actoz S oft C o., Ltd.

Figure 15. P/E Ranking
Source. Capital IQ

P/E (LTM) by country/exchange: Figure 16 shows the average P/E multiples by stock exchange. The OTCBB has the
largest number of companies (20), trading at an average multiple of 21.2x. On a geographic basis, the United States has
the most companies (40), trading at an average of 19.4x earnings (Figure 17). Ten of the companies are Canadian
(average 19.7x EPS).

Average P/E - By Exchange Average P/E - By Country

35.0 25.0 23.7
29.1
30.0 20.0
23.6 23.4 23.0
25.0 26.2 21.2
23.7 23.6 15.0 19.7
23.0 19.4
20.0
(x)

21.2 21.2
(x)

10.0 11.8
15.0
14.2 6.4
10.0 11.0 10.1 5.5
6.4 5.0 4.4
5.5
5.0 4.4
2.0 0.0 0.0
Germany

0.0 0.0
Japan

Canada

United

China

Malaysia
Italy
South
Korea

States
Taiwan

Australia

Sweden

Switzerland
OTCBB
GTSM

SEHK

KOSE

TSE

NasdaqGS
CM

OM
XTRA

AMEX

TSX

KLSE

NYSE

SWX
ASX

# Companies 2 9 3 1 6 10 40 10 2 1 1 1
# Companies 2 3 2 7 1 5 20 2 14 4 2 1 1 1 1

Figures 16 & 17. P/E Ranking (Exchange, Country)

Source. Capital IQ
 Page 12

C omparable C ompany Analys is > W eb 2 .0

P ric e P erformanc e
C ompa ny Na me C ur rency T ic ker E x change U S D Ma rket C ap ($m) C urrent Pric e 1 Wk 1 Mth 3 Mth 6 Mth 1 Yr 52 We ek

Acce le riz e N ew Me dia, Inc. US D A CL Z OT C B B 9 .7 0.3 5 0.0 % -30. 0% 59 .1% -1 2.5 % -53 .3% -53. 3%
Actoz S of t C o., L td. KR W A 052 790 KO SE 18 4.9 2 7,25 0.0 0 -16. 2% 9 3.3 % 15 0.0% 16 7.2% 2 49. 8% -24. 3%
AQ Inte ractive , Inc. JPY 3 838 TSE 4 2.6 7 6,80 0.0 0 2.4 % 4 0.1 % 12 6.5% 15 5.1% -48 .5% -56. 1%
As s ocia ted Media H oldings Inc. US D A S MH OT C P K 0 .9 0.0 2 1 233 .3% 12 33. 3% 132 8.6 % 56 6.7% NM -60. 0%
B igstring Corp. US D B S GC OT C B B 1 .5 0.0 3 7.4 % 2 6.1 % 93 .3% 45 .0% -78 .5% -85. 5%
B e tawave Corpora tion US D B W AV OT C B B 2 .9 0.1 0 66.7 % -9.1 % -4 4.4% -3 7.5 % -73 .7% -76. 2%
B e yond Commerce, Inc. US D B Y OC OT C B B 4 0.4 0.9 1 -4.2 % -26. 6% 78 .4% 30 .0% -71 .1% -72. 4%
B right T hings plc GBP A IM:B G T AI M 4 .8 0.0 2 -6.3 % -15. 7% -2 .0% 56 .3% -29 .4% -40. 0%
B roa dW ebAs ia Inc. US D B W BA OT C P K 1 9.5 0.2 3 -22. 8% -22. 8% -5 4.9% -7 7.2 % -84 .7% -92. 1%
C DC C orp. US D C H IN .A N as da qG S 16 4.4 1.5 5 4.0 % 2 1.1 % 59 .8% 44 .9% -41 .5% -51. 1%
C ha ngyou. com Limite d US D C Y OU N as da qG S 2,1 23. 6 3 8.6 1 -0.2 % 3 0.0 % NM NM NM -13. 9%
C hina G ate wa y C orpora tion US D CGWY OT C P K 0 .4 0.0 2 9 00. 0% 9 00.0 % 190 0.0 % 90 0.0% 33.3 % -42. 9%
C hine s e G amer International TWD G TS M:3 083 GT S M 79 7.0 31 2.0 0 -14. 8% 1 3.7 % 10 1.3% 25 5.8% 2 05. 9% -20. 6%
C ornerW orld C orporation US D CWR L OT C B B 4 .5 0.0 7 -22. 2% -30. 0% -5 0.0% -8 5.1 % -76 .7% -91. 1%
C yberplex Inc. C AD T S X:CX TSX 9 9.8 1.8 0 20.0 % 2.9% 26 0.0% 40 0.0% 1 40. 0% -9.5 %
D ADA S pA E UR C M :DA CM 13 4.1 6.0 0 5.3 % 3.7% 28 .8% -1 1.7 % -55 .2% -56. 2%
D XN Holdings B hd MY R DXN KL SE 2 6.1 0.4 0 2.6 % 0.0% 42 .9% 5 .3% 0.0 % -14. 9%
D ibz Inte rnational, Inc. US D DIB Z OT C P K 0 .0 0.0 0 -90. 0% -90. 0% -9 0.0% -9 8.0 % -98 .0% -98. 0%
D igitalP ost Inte ra ctive , Inc. US D DG L P OT C B B 1 .6 0.0 2 37.5 % 4 6.7 % 45 0.0% -1 2.0 % -83 .1% -87. 1%
D igitalT own, Inc. US D DG T W OT C B B 6 7.7 2.5 0 25.0 % 0.0% 0 .0% 0 .0% -28 .6% -59. 0%
D olphin Digital Me dia, Inc. US D DP DM OT C B B 2 7.4 0.5 3 -11. 7% -24. 3% 8 .2% -3 2.9 % NM -53. 1%
E olith C o. L td. KR W A 041 060 KO SE 4 3.8 76 0.0 0 8.6 % -20. 0% 36 .9% 15 .2% -11 .1% -34. 5%
E xte ns ions , Inc. US D E XT I OT C P K 1 4.2 0.1 5 -25. 0% -25. 0% 18 5.7% 50 .0% 0.0 % -85. 1%
F inancia l Media G roup, Inc. US D F NGP OT C B B 0 .3 0.0 0 42.9 % 0.0% -7 1.4% -9 3.3 % -99 .6% -99. 6%
F luid M us ic Ca nada, Inc. C AD T S X:F MN TSX 3 4.7 0.7 5 7.1 % 7.1% 87 .5% 20 0.0% -60 .5% -63. 2%
F rogs te r Interactive P icture s AG E UR FR G XT R A 2 5.9 7.9 8 1.8 % -5.6 % 73 .9% 74 .2% 46.4 % -19. 4%
G a ma nia Digital E ntertainment C o., L td. TWD 6 180 GT S M 25 6.5 5 5.6 0 -0.4 % 4 2.2 % 81 .1% 27 0.7% 75.9 % -11. 3%
G a me On C o L td. JPY 3 812 TSE 11 2.8 11 4,30 0.0 0 -2.1 % 2 1.9 % 41 .6% -3.8% -11 .4% -30. 1%
G e oS e ntric O yj E UR G E O1V H LS E 4 9.5 0.0 4 -20. 0% -20. 0% 33 .3% 0 .0% -33 .3% -42. 9%
G iant Intera ctive G roup, Inc. US D GA NYS E 1,8 58. 9 8.2 4 -8.7 % 0.0% 11 .4% 38 .0% -39 .0% -41. 8%
G iga Media Ltd. US D G IG M N as da qG S 29 8.8 5.5 3 -10. 2% -6.9 % -3 .3% -1 4.7 % -62 .4% -65. 0%
G ravity C o., L td US D G RV Y N as da qG M 3 0.6 1.1 0 -4.3 % 1 2.2 % 74 .6% 11 5.7% -14 .1% -44. 7%
G ree, Inc. JPY T S E :36 32 TSE 1,3 97. 1 6,13 0.0 0 -4.7 % 1 1.9 % 23 .6% 27 .7% NM -5.8 %
G ungH o O nline E ntertainment, Inc. JPY 3 765 OS E 26 3.0 22 5,00 0.0 0 -9.9 % 2 6.4 % 10 2.5% 13 0.3% -16 .7% -19. 9%
H anbitS oft, Inc. KR W A 047 080 KO SE 8 2.0 4,72 0.0 0 -1.5 % -15. 0% 42 .2% 31 .8% 33.7 % -28. 9%
IAC /InterActiveC orp. US D I ACI N as da qG S 2,4 58. 4 1 6.2 9 0.5 % 9.0% 8 .8% 0 .1% -60 .4% -67. 7%
IAS E nergy, Inc. US D I AS C .A OT C B B 1 6.1 0.2 3 15.0 % -17. 9% 22 8.6% 66 6.7% 4.5 % -34. 3%
is ee media Inc. C AD IEE T S XV 3 .4 0.0 8 7.1 % -21. 1% -6 .3% 66 .7% -58 .3% -78. 6%
J umbuck E ntertainment P ty Ltd. AU D A S X:J M B AS X 1 5.7 0.4 0 -4.8 % -2.4 % -1 2.1% 2 .6% -34 .4% -35. 5%
J umpT V Inc. C AD T S X:J T V TSX 7 3.1 0.7 3 -1.4 % -6.4 % 82 .5% 13 5.5% 12.3 % -43. 0%
K A B Dis tribution Inc. C AD T S X:K AB TSX 7 6.4 0.6 2 1.6 % 3.3% 65 .3% 14 3.1% -31 .1% -37. 4%
K ings oft Co. Ltd. HKD 3 888 S E HK 73 2.1 5.2 3 -4.7 % 1 1.3 % 94 .4% 10 5.1% 34.1 % -12. 4%
Lingo Media Corporation C AD T S XV :LM T S XV 1 2.8 1.1 3 13.0 % 2 2.8 % 25 .6% 7 .6% -42 .6% -42. 6%
Live World Inc. US D L VW D OT C P K 3 .1 0.1 0 -60. 0% 4 2.9 % -5 0.0% 10 0.0% -50 .0% -68. 8%
LookS mart, Ltd. US D L OOK N as da qG M 2 3.1 1.3 5 1.5 % 3.8% 31 .1% -1 1.8 % -66 .0% -68. 2%
M agnitude Information S ys tems Inc. US D M AG Y OT C B B 5 .5 0.0 1 20.0 % 2 0.0 % -3 3.3% -3 6.8 % -45 .5% -60. 0%
M ixi, Inc. JPY 2 121 TSE 72 1.7 46 0,00 0.0 0 1.1 % 8.2% 41 .5% -2 1.0 % -38 .9% -50. 1%
M ode rn Times G roup Mtg AB SE K MT G B OM 1,8 01. 8 21 6.0 0 1.6 % -5.1 % 69 .7% 36 .7% -43 .0% -47. 1%
M oggle , Inc US D M MOG OT C B B 8 3.5 2.3 0 15.0 % 1 5.0 % 53 .3% NM NM 0.0 %
M OK O.mobi L imited AU D MKB AS X 3 .5 0.0 5 -22. 7% -32. 0% -1 5.0% 2 .0% -7. 3% -49. 0%
M yriad G roup AG C HF MYR N SWX 10 0.3 5.1 5 3.0 % 3.0% 35 .5% -1 4.2 % -49 .8% -49. 8%
N E OW IZ G ames C orpora tion KR W A 095 660 KO SE 50 2.9 6 5,90 0.0 0 -7.8 % 5.1% 70 .7% 23 6.2% 1 19. 7% -21. 5%
N etDragon W ebS oft, Inc. HKD 7 77 S E HK 34 1.0 5.0 0 -5.8 % -15. 8% 46 .2% 77 .9% -51 .5% -52. 8%
N ete as e.com I nc. US D NT E S N as da qG S 4,3 11. 8 3 5.0 4 -6.5 % 1 5.1 % 50 .1% 62 .5% 59.7 % -9.6 %
N eXplore Corpora tion US D N XP C OT C P K 3 9.0 0.7 0 0.0 % 0.0% 0 .0% -3 3.3 % -22 .2% -51. 7%
N gi G roup Inc. JPY 2 497 TSE 4 5.5 3 6,10 0.0 0 12.8 % 1 7.8 % 10 4.0% -2 8.9 % -70 .9% -72. 9%
N orthgate Te chnologies L imited IN R 5 900 57 BS E 3 0.6 4 2.0 5 -22. 4% -13. 9% 24 .0% -2 8.2 % -88 .6% -89. 0%
Open T e xt Corp. US D O TE X N as da qG S 1,8 77. 1 3 5.6 7 3.8 % 1 4.6 % 13 .9% 23 .8% 11.0 % -8.7 %
Openwave S ys tems Inc. US D O PW V N as da qG S 19 1.6 2.3 0 21.7 % 9 1.7 % 16 4.4% 26 5.1% 37.7 % -5.3 %
P e rfect W orld C o., Ltd. US D P W RD N as da qG S 1,2 45. 2 2 4.3 5 7.6 % 3 5.1 % 91 .7% 51 .7% -1. 7% -13. 3%
Quepa s a C orp. US D Q PSA N as da qC M 7 .9 0.6 2 -11. 4% -38. 0% -4 6.1% -6 5.6 % -74 .1% -82. 1%
OA O R B C Information S ys tems US D R BC I R TS 13 8.7 1.0 0 -25. 9% -20. 0% 33 4.8% 66 .7% -88 .9% -89. 0%
S handa Interactive E ntertainme nt L td. US D S NDA N as da qG S 3,7 74. 4 5 4.4 0 -11. 7% 1 2.2 % 48 .9% 81 .5% 89.5 % -16. 3%
S hutte rf ly, Inc. US D S F LY N as da qG S 33 9.1 1 3.4 7 0.1 % -2.1 % 52 .9% 85 .8% -4. 8% -11. 7%
S K C ommunications Co., Ltd. KR W A 066 270 KO SE 36 5.5 1 1,00 0.0 0 0.0 % 1 5.3 % 42 .5% 91 .0% -34 .5% -44. 2%
S N AP Inte ra ctive , Inc. US D S T VI OT C B B 7 .6 0.7 0 -11. 4% -6.7 % -3 3.3% 0 .0% 1.4 % -35. 2%
S N M G lobal H oldings US D S NM N OT C P K 0 .0 0.0 0 -25. 0% -50. 0% 50 .0% -9 5.7 % -99 .9% -99. 9%
S ocia l Media V e nures , Inc. US D S MVI OT C P K 0 .0 0.0 1 0.0 % 0.0% -9 9.2% -9 9.1 % NM -99. 8%
S ocia lwis e, Inc. US D S CL W OT C B B 3 0.3 0.7 0 -1.4 % -20. 5% 84 .2% -2 8.6 % -51 .7% -75. 3%
S ohu. com Inc. US D S OH U N as da qG S 2,5 22. 0 6 5.9 1 -1.5 % 2 5.4 % 36 .3% 44 .9% -8. 3% -25. 1%
S ite s earch C orporation US D S T PC OT C B B 2 8.2 3.5 0 -30. 0% NM NM NM NM -30. 0%
S park N etworks , Inc. US D L OV AM E X 4 6.3 2.2 5 -2.6 % -10. 7% -4 .3% -1 3.1 % -47 .1% -49. 6%
S pectrumDN A, Inc. US D S P XA OT C B B 9 .7 0.2 0 -46. 0% -41. 2% 11 .1% -4.8% NM -66. 7%
T encent Holdings L td. HKD 7 00 S E HK 20, 758 .8 8 9.2 0 -0.4 % 1 2.1 % 69 .1% 72 .2% 41.8 % -3.6 %
T he P arent C ompany US D K IDS .Q OT C P K 0 .8 0.0 3 68.4 % 1 56.0 % 96 6.7% -8 9.3 % -98 .4% -98. 8%
T he 9 L imited US D NC TY N as da qG S 28 0.5 1 0.4 6 -5.9 % 1 3.0 % -1 8.0% -1 7.0 % -52 .6% -63. 3%
T he S treet.com, Inc. US D T S CM N as da qG M 6 4.3 2.1 0 8.2 % 1 3.5 % 6 .6% -3 6.6 % -70 .0% -71. 4%
T otal S port Online A S N OK T OS O OT C N O 0 .1 0.0 3 0.0 % 0.0% -2 5.0% -4 0.0 % -70 .0% -70. 0%
T ree.C om, Inc. US D TR EE N as da qG M 9 4.4 8.7 4 -26. 5% -25. 7% 91 .7% 30 8.4% NM -33. 1%
U nis erve C ommunications Corp. C AD T S XV :U S S T S XV 1 .1 0.0 5 0.0 % 2 5.0 % 0 .0% 25 .0% -84 .8% -85. 7%
U nited Online Inc. US D UNTD N as da qG S 54 6.6 6.5 4 -5.6 % -1.2 % 63 .1% 13 .9% -40 .5% -46. 6%
U OMO Media , Inc US D U OMO OT C B B 1 4.1 0.1 7 -8.3 % -52. 9% 13 5.7% 26 .9% -52 .9% -84. 4%
V a lueC lick Inc. US D V CL K N as da qG S 1,0 48. 0 1 2.0 5 3.7 % 1 9.5 % 75 .1% 63 .1% -29 .3% -33. 2%
V O IS , Inc. US D V OIS OT C B B 2 .9 0.3 5 0.0 % -61. 1% -1 2.5% 16 .7% -92 .6% -93. 8%
W ebze n Inc. US D W ZE N N as da qG M 4 0.3 3.4 0 -15. 3% 9.3% 80 .9% 31 4.6% -0. 6% -27. 3%
W iz za rd S of twa re Corpora tion US D W ZE AM E X 3 1.1 0.6 5 -3.0 % 0.0% 71 .1% -3 4.3 % -63 .5% -68. 0%
W orlds .com Inc. US D W DDD OT C B B 4 .7 0.0 9 -10. 0% -47. 1% -5 0.0% -5 5.0 % -70 .5% -77. 5%
W ynds torm C orporation US D W YND OT C B B 9 .2 0.5 1 1 600 .0% 2 00.0 % 32 5.0% 32 5.0% -15 .0% -40. 0%
XIN G AG E UR O 1B C XT R A 24 5.7 3 3.8 0 8.3 % 1 0.8 % 16 .0% 40 .5% -4. 5% -7.9 %
Y e dangOnline Corp. KR W A 052 770 KO SE 11 5.6 9,29 0.0 0 -3.9 % 2.1% 34 .4% 30 .8% -16 .3% -25. 1%
Y nk K orea Inc. KR W A 023 770 KO SE 2 7.1 6,40 0.0 0 -8.6 % -17. 9% 82 .9% 8 .8% -53 .1% -55. 2%
ZipLocal Inc. C AD T S XV :ZIP T S XV 0 .4 0.0 1 0.0 % 0.0% 0 .0% -5 0.0 % -96 .4% -96. 9%
H igh 1 600 .0% 12 33. 3% 190 0.0 % 90 0.0% 2 49. 8% 0.0 %
Low -90. 0% -90. 0% -9 9.2% -9 9.1 % -99 .9% -99. 9%
A vera ge 581.4 38.2% 27.6% 97.1% 66.3% -24.8% -50.3%
M edian -0.4 % 2.1% 42 .7% 25 .0% -40 .5% -49. 7%

Figure 18. Price Performance

Source. Capital IQ
 Page 13

C omparable C ompany A nalys is > W eb 2.0

V aluatio n Multiples
P rimary US D Market TE V/LT M TE V/ N TM TE V/LT M TE V/NTM
C om pany Nam e S ec to r Co untry E xc hange Tic ker Cap ($m) R evenue R evenue E BITDA E BITDA P /LT M E P S P /NT M E P S P /TangBV
Acce le rize N ew Me dia, Inc. D irect Marketing U nite d S tates OT C B B AC LZ 9. 7 3.5 x - - - - - -
Actoz S of t C o., L td. G aming S outh K ore a K OS E A 052 790 1 84. 9 1.7 x - 7.8 x - 28 .1x - 3 .2x
AQ Inte ractive , Inc. G aming J a pan TSE 3 838 42. 6 0.2 x - 3.6 x - - - 0 .7x
As s ocia ted Media Holdings Inc. Mobile U nite d S tates OT C P K AS MH 0. 9 19.2 x - - - - - -
B igstring Corp. Ins ta nt Mes s aging U nite d S tates OT C B B BS G C 1. 5 39.0 x - - - - - -
B e tawave Corpora tion Me dia U nite d S tates OT C B B B WA V 2. 9 - - - - - - 0 .4x
B e yond Commerce, Inc. S ocia l Ne tworking U nite d S tates OT C B B BYO C 40. 4 6.3 x - - - - - -
B right T hings plc S ocia l Ne tworking U nite d K ingdom AIM AIM:B G T 4. 8 17.6 x - - - - - -
B roa dW ebAs ia Inc. S ocia l Ne tworking U nite d S tates OT C P K B WB A 19. 5 - - - - - - -
C D C C orp. G aming H ong K ong N as da qG S C HIN .A 1 64. 4 0.5 x 0.5x 5.8 x 6.2x - 1 1.2 x -
C ha ngyou. com Limite d G aming C hina N as da qG S CY OU 2,1 23. 6 8.7 x 6.7x 14.3 x - 14 .5x 1 3.9 x 1 3.2x
C hina G ate wa y C orpora tion Mobile U nite d S tates OT C P K CG W Y 0. 4 0.1 x - - - - - -
C hine s e G amer International G aming T a iwan GTS M G T S M:308 3 7 97. 0 13.0 x - 23.3 x - 30 .9x - 1 1.6x
C ornerW orld C orporation C ontent U nite d S tates OT C B B CWR L 4. 5 4.6 x - - - - - -
C yberplex Inc. Advertis ing C anada TSX T S X:C X 99. 8 1.3 x 1.0x 12.9 x 8.5x 10 .1x 1 1.8 x 1 0.0x
D AD A S pA S ocia l Ne tworking Italy CM CM:DA 1 34. 1 0.8 x - 4.3 x - 23 .0x - -
D XN Holdings B hd S ocia l Ne tworking Malays ia KL SE D XN 26. 1 0.5 x - 3.9 x - 4. 4x - 0 .5x
D ibz Inte rnational, Inc. S NS A pps U nite d S tates OT C P K D IB Z 0. 0 - - - - - - -
D igitalP ost Inte ra ctive , Inc. C ontent U nite d S tates OT C B B DGL P 1. 6 4.5 x - - - - - -
D igitalT own, Inc. S ocia l Ne tworking U nite d S tates OT C B B D G TW 67. 7 - - - - - - -
D olphin D igital Me dia, Inc. S ocia l Ne tworking U nite d S tates OT C B B DP DM 27. 4 36.7 x - - - - - -
E olith C o. L td. G aming S outh K ore a K OS E A 041 060 43. 8 3.1 x - - - - - 4 .2x
E xte ns ions , Inc. C ontent U nite d S tates OT C P K E XT I 14. 2 - - - - - - -
F inancia l Media G roup, Inc. D irect Marketing U nite d S tates OT C B B F NGP 0. 3 - - - - - - -
F luid Mus ic Ca nada, Inc. Me dia U nite d S tates TSX T S X:F MN 34. 7 5.2 x 4.3x - - - - 3 .5x
F rogs te r Interactive P icture s AG G aming G ermany XT R A F RG 25. 9 7.6 x - - - - - 3 .9x
G a ma nia D igital E ntertainment C o., L td. G aming T a iwan GTS M 6 180 2 56. 5 1.9 x - 11.2 x - 27 .3x - 3 .3x
G a me On C o L td. G aming J a pan TSE 3 812 1 12. 8 0.7 x - 3.0 x - 13 .5x - 1 .5x
G e oS e ntric O yj Mobile F inland H LS E G E O1V 49. 5 7.8 x - - - - - 8 .6x
G iant Intera ctive G roup, Inc. G aming C hina NYS E GA 1,8 58. 9 - - - - 2. 0x 1 3.7 x 0 .4x
G iga Media Ltd. G aming T a iwan N as da qG S G IG M 2 98. 8 1.2 x 1.2x - 5.7x 11 .9x 1 1.1 x 2 .6x
G ravity C o., L td G aming S outh K ore a N as da qG M GR VY 30. 6 - - - - - - -
G ree, Inc. S ocia l Ne tworking J a pan TSE T S E :3 632 1,3 97. 1 43.9 x - - - - - 1 7.8x
G ungH o O nline E ntertainment, Inc. Me dia J a pan OS E 3 765 2 63. 0 2.2 x - 12.4 x - - - 3 8.2x
H anbitS of t, Inc. G aming S outh K ore a K OS E A 047 080 82. 0 1.2 x - - - - - 2 .5x
IAC /InterActiveC orp. Me dia U nite d S tates N as da qG S IAC I 2,4 58. 4 0.4 x - 13.5 x 3.7x 20 .9x 3 2.0 x 1 .1x
IAS E nergy, Inc. V ide o C anada OT C B B IA S C .A 16. 1 - - - - - - -
is ee media Inc. C ontent C anada T S XV IE E 3. 4 1.6 x - - - - - 2 .9x
J umbuck E ntertainment P ty Ltd. S ocia l Ne tworking A us tralia AS X AS X:J MB 15. 7 0.8 x - 2.0 x - 6. 4x - 1 .6x
J umpT V Inc. V ide o C anada TSX T S X:J T V 73. 1 3.4 x - - - - - 4 .3x
K A B D is tribution Inc. C ontent C anada TSX TS X:K AB 76. 4 1.1 x 1.1x 9.5 x 5.8x - - -
K ings oft Co. Ltd. G aming C hina S E HK 3 888 7 32. 1 5.2 x - 12.9 x - 16 .5x - 4 .0x
Lingo Media Corporation Le arning C anada T S XV TS XV :LM 12. 8 13.0 x - - - - - 1 3.2x
Live World Inc. S ocia l Ne tworking U nite d S tates OT C P K LV W D 3. 1 0.2 x - - - - - 1 .3x
LookS mart, Ltd. D irect Marketing U nite d S tates N as da qG M L OOK 23. 1 - - - - - - 0 .9x
Magnitude Information S ys tems Inc. S ocia l Ne tworking U nite d S tates OT C B B MAG Y 5. 5 - - - - - - -
Mixi, Inc. S ocia l Ne tworking J a pan TSE 2 121 7 21. 7 4.9 x - 13.9 x - 36 .7x - 5 .5x
Mode rn Times G roup Mtg AB Me dia S we den OM MT G B 1,8 01. 8 1.4 x 1.3x 9.0 x 1 0.5 x 5. 5x 1 2.5 x -
Moggle , Inc G aming U nite d S tates OT C B B MMO G 83. 5 - - - - - - -
MOK O.mobi L imited S ocia l Ne tworking A us tralia AS X MK B 3. 5 2.1 x - - - - - 2 .6x
Myriad G roup AG Mobile S witz erland SWX MY R N 1 00. 3 2.8 x - - - - - 4 .6x
N E OW IZ G ames C orpora tion G aming S outh K ore a K OS E A 095 660 5 02. 9 2.5 x - 9.4 x - 30 .3x - 1 5.3x
N etD ragon W ebS oft, Inc. G aming C hina S E HK 777 3 41. 0 2.3 x - 5.8 x - 12 .2x - 1 .8x
N ete as e.com I nc. G aming C hina N as da qG S NT E S 4,3 11. 8 - - - - 2. 6x 1 5.9 x 0 .8x
N eXplore Corpora tion C ontent U nite d S tates OT C P K N XP C 39. 0 - - - - - - -
N gi G roup Inc. Me dia J a pan TSE 2 497 45. 5 - - - - 13 .3x - 0 .7x
N orthgate Te chnologies L imited D irect Marketing India BS E 59 005 7 30. 6 0.3 x - - - - - -
Open T e xt Corp. C ollaboration C anada N as da qG S O TE X 1,8 77. 1 2.5 x 2.3x 9.8 x 8.5x 29 .3x 1 3.6 x -
Openwave S ys tems Inc. Mobile U nite d S tates N as da qG S OP W V 1 91. 6 0.4 x 0.5x - 5.2x - 3 6.5 x 2 .8x
P e rf ect W orld C o., Ltd. G aming C hina N as da qG S PW R D 1,2 45. 2 0.1 x 0.6x 0.2 x 1.2x 2. 0x 1 0.9 x 0 .8x
Quepa s a C orp. S ocia l Ne tworking U nite d S tates N as da qC M QP S A 7. 9 - - - - - - -
OA O R B C Information S ys tems Me dia R us s ia R TS R B CI 1 38. 7 0.0 x - 0.2 x - - - -
S handa Interactive E ntertainme nt L td. G aming C hina N as da qG S S NDA 3,7 74. 4 0.1 x 0.5x 0.2 x 1.3x 2. 9x 1 5.2 x 1 .2x
S hutte rf ly, Inc. D igital Imaging U nite d S tates N as da qG S S FL Y 3 39. 1 1.3 x - 9.7 x 7.4x - - 2 .0x
S K C ommunications Co., Ltd. S e arch S outh K ore a K OS E A 066 270 3 65. 5 2.0 x - 30.8 x - - - -
S N AP Inte ra ctive , Inc. D ating U nite d S tates OT C B B S TVI 7. 6 1.9 x - 6.6 x - 11 .6x - 4 .5x
S N M G lobal H oldings Me dia U nite d S tates OT C P K S N MN 0. 0 1.1 x - - - - - -
S ocia l Media V e nures , Inc. S ocia l Ne tworking U nite d S tates OT C P K S MV I 0. 0 0.0 x - - - - - -
S ocia lwis e, Inc. S ocia l Ne tworking U nite d S tates OT C B B S CL W 30. 3 - - - - - - 3 9.5x
S ohu. com Inc. G aming C hina N as da qG S S OH U 2,5 22. 0 4.7 x 4.1x 10.7 x 9.3x 14 .2x 1 8.2 x 6 .8x
S ite s earch C orporation S ocia l Ne tworking U nite d S tates OT C B B STPC 28. 2 - - - - - - 6 0.4x
S park N etworks , Inc. S ocia l Ne tworking U nite d S tates AME X L OV 46. 3 0.9 x - 4.0 x - 14 .2x - -
S pectrumDN A, Inc. Me dia U nite d S tates OT C B B S P XA 9. 7 - - - - - - 2 5.5x
T encent Holdings L td. P orta l C hina S E HK 700 20,7 58. 8 18.8 x - 39.2 x - 49 .8x - 2 0.8x
T he P arent C ompany Me dia U nite d S tates OT C P K K ID S .Q 0. 8 0.2 x - - - - - -
T he 9 L imited G aming C hina N as da qG S NC T Y 2 80. 5 - - - - 0. 8x 1 1.4 x 0 .1x
T he S treet.com, Inc. Me dia U nite d S tates N as da qG M TSCM 64. 3 - - - - - - 0 .8x
T otal S port Online A S Me dia N orway OT C NO T OS O 0. 1 4.6 x - - - - - -
T ree.C om, Inc. P orta l U nite d S tates N as da qG M TR E E 94. 4 0.4 x 0.4x - 4.5x - - 1 .2x
U nis erve C ommunications Corp. S ocia l Ne tworking C anada T S XV T S XV :U S S 1. 1 0.2 x - - - - - -
U nited Online Inc. Me dia U nite d S tates N as da qG S U N TD 5 46. 6 1.0 x 0.8x 4.7 x 3.4x - 8.1x -
U OMO Media , Inc Me dia C anada OT C B B U OMO 14. 1 22.8 x - - - - - -
V a lueC lick Inc. Me dia U nite d S tates N as da qG S VC LK 1,0 48. 0 1.6 x 1.7x 8.9 x 6.9x - 1 9.1 x 8 .5x
V O IS , Inc. S ocia l Ne tworking U nite d S tates OT C B B VOIS 2. 9 - - - - - - 1 0.1x
W ebze n Inc. G aming S outh K ore a N as da qG M W ZE N 40. 3 - - - - - - 0 .0x
W iz za rd S of twa re Corpora tion P odcas ting U nite d S tates AME X W ZE 31. 1 5.8 x - - - - - -
W orlds .com Inc. C ontent U nite d S tates OT C B B W DD D 4. 7 - - - - 30 .7x - -
W ynds torm C orporation C ontent U nite d S tates OT C B B W YND 9. 2 - - - - - - -
XIN G AG S ocia l Ne tworking G ermany XT R A O 1B C 2 45. 7 3.7 x - 11.9 x - 23 .7x - 7 .9x
Y e dangOnline Corp. G aming S outh K ore a K OS E A 052 770 1 15. 6 2.3 x - 10.4 x - 12 .4x - 4 .3x
Y nk K orea Inc. G aming S outh K ore a K OS E A 023 770 27. 1 2.3 x - 22.1 x - - - 1 .4x
ZipLocal Inc. D irectory C anada T S XV T S XV :ZIP 0. 4 0.6 x - - - - - -
H igh 20,7 58. 8 43.9 x 6.7x 39.2 x 1 0.5 x 49 .8x 3 6.5 x 6 0.4x
Low 0. 0 0.0 x 0.4x 0.2 x 1.2x 0. 8x 8.1x 0 .0x
A vera ge 581. 4 5.3x 1.8x 10.2x 5.9x 16.7x 15.9x 7.4x
Median 41. 5 2.0 x 1.1x 9.4 x 5.8x 13 .8x 1 3.6 x 3 .2x

Figure 19. Valuation Comparison

Source. Capital IQ
 Page 14

C omparable C ompany A nalys is > W eb 2.0

Su mmary b y C ountry

C om pany Nam e U S D Market Cap ($m) Avg US D Mar ket C ap ($m) U S D LT M T otal R ev ($m) U S D LT M Total E B IT DA ($m) E B IT DA %

U nited S tates 40 C hina 37, 948.2 China 3,794. 8 C hina 3, 837. 6 C hina 1,773. 2 C hina 47. 9%
C anada 10 U nited S tates 5, 300.8 S weden 1,801. 8 U nited S ta tes 3, 795. 5 S weden 261. 0 Aus tral ia 37. 2%
C hina 10 J a pan 2, 582.7 Ta iwa n 450. 8 S weden 1, 704. 0 U nited S ta tes 244. 5 T aiwa n 36. 3%
S outh K orea 9 C anada 2, 174.3 Japan 430. 5 C a na da 973. 5 C a na da 193. 5 G ermany 31. 2%
J a pa n 6 S weden 1, 801.8 Ca na da 217. 4 S outh K orea 667. 0 J apan 125. 9 J a pa n 25. 0%
T a iwa n 3 S outh K orea 1, 392.7 Hong K ong 164. 4 J a pa n 496. 7 S outh K orea 86. 7 I ta ly 18. 6%
A ustra lia 2 T a iwa n 1, 352.3 S outh K orea 154. 7 H ong K ong 389. 9 T a iwan 52. 3 S weden 15. 3%
G ermany 2 G erma ny 271.5 R us sia 138. 7 T aiwan 365. 6 I taly 43. 0 M a la ys ia 13. 7%
S witz erla nd 1 H ong K ong 164.4 G erma ny 135. 8 I ta ly 231. 6 H ong K ong 30. 8 R uss ia 13. 1%
H ong K ong 1 R uss ia 138.7 Ita ly 134. 1 R uss ia 151. 4 R uss ia 19. 8 H ong K ong 7.9%
F inla nd 1 I ta ly 134.1 United S tates 132. 5 I ndia 117. 0 M alays ia 10. 8 S outh K orea 6.1%
I ta ly 1 S witz erla nd 100.3 S witzerland 100. 3 M a la ys ia 78. 4 G erma ny 10. 3 S witz erla nd 1.9%
U nited K ingdom 1 F inland 49.5 Finland 49. 5 G ermany 55. 4 Aus tralia 2. 9 U nited S ta tes -10.1%
I ndia 1 I ndia 30.6 India 30. 6 S witz erla nd 40. 0 S witz erland 0. 8 I ndia -23.5%
S weden 1 M alays ia 26.1 Malay sia 26. 1 Aus tra l ia 15. 4 N orway -1. 0 C anada -25.0%
R us sia 1 Aus tra lia 19.2 Australia 9. 6 F inla nd 5. 8 U nited K ingdom -1. 8 N orway -50.6%
M a la ys ia 1 U nited K ingdom 4.8 United K ingdom 4. 8 N orwa y 2. 1 F inland -15. 1 U nited K ingdom #DI V /0!
N orway 1 N orway 0.1 Norway 0. 1 U nited K ingdom 0. 3 I ndia -27. 5 F inla nd #DI V /0!

G rand To tal 92 G rand T otal 53,492.4 G rand Total 581.4 G rand T otal 12,927.2 G r and T otal 2,810.1 G rand T otal 7.1%

Figure 20. Comparison by Country

Source. Capital IQ

C omparable C ompany A nalys is > W eb 2.0

Su mmary b y Ex c hange

C om pany Nam e U S D Market Cap ($m) Avg US D Mar ket C ap ($m) U S D LT M T otal R ev ($m) U S D LT M Total E B IT DA ($m) E B IT DA %

OT C B B 20 SE HK 21, 831.9 S E HK 7,277. 3 OM 1, 704. 0 N a sdaqG S 1,692. 2 S EHK 42. 6%

N as da qG S 14 N asdaqG S 21, 181.4 NY S E 1,858. 9 N a sda qG S 484. 1 S E HK 662. 6 AS X 37. 2%
OT C P K 10 TSE 2, 319.7 OM 1,801. 8 S E HK 472. 9 OM 261. 0 GT SM 36. 3%
K OS E 7 NYS E 1, 858.9 Na s daqG S 1,513. 0 CM 231. 6 TSE 107. 0 XT R A 31. 2%
TSE 5 OM 1, 801.8 G TS M 526. 8 NYS E 218. 8 K OS E 79. 7 N asdaqG S 30. 1%
N as da qG M 5 K OS E 1, 321.8 TS E 463. 9 R TS 151. 4 GT S M 52. 3 TSE 26. 4%
TSX 4 GTS M 1, 053.5 OS E 263. 0 BSE 117. 0 CM 43. 0 CM 18. 6%
T S XV 4 OT CB B 368.0 K OS E 188. 8 OS E 105. 2 R TS 19. 8 OS E 18. 0%
S E HK 3 TSX 284.0 RT S 138. 7 GT S M 91. 0 OS E 18. 9 OM 15. 3%
A ME X 2 XT R A 271.5 XT R A 135. 8 K OS E 86. 5 K LS E 10. 8 K LS E 13. 7%
ASX 2 OS E 263.0 CM 134. 1 N a sda qG M 81. 0 XTR A 10. 3 R TS 13. 1%
XT R A 2 N asdaqG M 252.6 SWX 100. 3 K LS E 78. 4 AM E X 6. 4 K OS E 5.4%
GT SM 2 R TS 138.7 TS X 71. 0 TSE 78. 3 AS X 2. 9 SWX 1.9%
S WX 1 CM 134.1 Na s daqG M 50. 5 TSX 41. 8 SWX 0. 8 N asdaqG M 1.6%
H LS E 1 SWX 100.3 HL S E 49. 5 SWX 40. 0 NYS E 0. 0 O T CB B -5. 3%
NYS E 1 OT CP K 77.8 AME X 38. 7 AM E X 29. 9 OT CN O -1. 0 TSX -14.8%
CM 1 AM E X 77.3 BS E 30. 6 XT RA 27. 7 AI M -1. 8 BSE -23.5%
B SE 1 H LS E 49.5 KLS E 26. 1 OT CP K 18. 9 TSX -2. 9 AM E X -36.4%
N as da qC M 1 BS E 30.6 O TC B B 18. 4 AS X 7. 7 N a sdaqG M -8. 1 T S XV -39.0%
OS E 1 KLS E 26.1 AS X 9. 6 T S XV 7. 0 T S XV -8. 4 O T CP K -41.3%
A IM 1 AS X 19.2 Na s daqC M 7. 9 HLS E 5. 8 N a sdaqC M -10. 8 O T CN O -50.6%
OM 1 T S XV 17.6 O TC P K 7. 8 OT CB B 2. 1 HLS E -15. 1 N asdaqC M #DI V /0!
R TS 1 N asdaqC M 7.9 AIM 4. 8 OT CN O 2. 1 BSE -27. 5 H LS E #DI V /0!
K LS E 1 AI M 4.8 TS X V 4. 4 AI M 0. 3 OT CP K -32. 7 AI M #DI V /0!
O T C NO 1 OT CN O 0.1 O TC NO 0. 1 N a sda qC M 0. 1 OT CB B -49. 4 NYS E #DI V /0!

G rand To tal 92 G rand T otal 53,492.4 G rand Total 581.4 G rand T otal 152.1 G r and T otal 2,810.1 G rand T otal 7.1%

Figure 21. Comparison by Exchange

Source. Capital IQ
 Page 15

Fin anc in g - Las t Th ree Mon ths (US $ m)

Mo nth Company Name C ountry Angel/S eed Debt financ ing P IP E S eries A S eries B S er ies C S eries D G rand Total
A pr -09 Collective Media USA 20.0 20. 0
G OOM R adio F ra nce 16. 0 16. 0
Mar in S oftware USA 13. 0 13. 0
The R ubico n P r oject USA 8. 0 5. 0 13. 0
FreeW heel USA 12.0 12. 0
Cellufun USA 10.0 10. 0
Conduc to r Inc . USA 10.0 10. 0
S canS c o ut USA 8. 1 8. 1
Batanga USA 7.5 7. 5
Viximo USA 5. 0 5. 0
DoubleT wis t USA 5. 0 5. 0
IMS hopping USA 4.7 4. 7
S oc ialtext USA 4.5 4. 5
Mixercas t USA 4. 1 4. 1
S oundClo ud G ermany 3.3 3. 3
TubeMogul USA 3.0 3. 0
Tribal No va C anada 2. 5 2. 5
Tripbas e USA 2.0 2. 0
S oc ialcas t USA 1.4 1. 4
Brandtology S inga pore 1.4 1. 4
S can & Target F ra nce 1. 3 1. 3
J odange USA 1. 2 1. 2
Fo odis ta USA 0.6 0. 6
A pr -09 T otal 15.6 8.0 45.3 52.5 16.1 12.0 149.5

May-09 Faceboo k USA 200.0 200. 0

One Net E ntertainment C hina 10.0 10. 0 20. 0
Cyberplex C anada 12. 9 12. 9
P eer39 USA 10.5 10. 5
OpenX UK 10.0 10. 0
Imeem USA 8. 8 8. 8
E veryZing USA 8. 3 8. 3
Wo nderHill USA 7.0 7. 0
BlogHer Inc . USA 7. 0 7. 0
Fuhu Inc . USA 6. 3 6. 3
Azuki S ys tems USA 6.0 6. 0
I Lo ve R ewards C anada 5. 9 5. 9
TimeBridge USA 5. 0 5. 0
OLX USA 5. 0 5. 0
Doc uS ign USA 5.0 5. 0
Medialets USA 4. 0 4. 0
Res o nate Netwo rks USA 2.0 2. 0
Mo 'Minis I srael 1.5 1. 5
VoxP op USA 1. 5 1. 5
Lo op'd Network USA 0. 8 0. 8
May-09 T otal 13.6 10.0 22.9 23.3 18.7 40.8 205.0 334.1

J un-09 S ugar Inc. USA 16.0 16. 0

W imba USA 12.0 12. 0
G rab Netwo rks USA 12. 0 12. 0
beeT V USA 8. 0 8. 0
Zoos k USA 6. 0 6. 0
G ather USA 5.3 5. 3
G ameG round I srael 4. 1 4. 1
RingRevenue USA 3.5 3. 5
YuMe USA 2. 9 2. 9
Inigra l USA 2. 4 2. 4
AdE x Media USA 2.3 2. 3
my6s ens e I srael 2.0 2. 0
Cliqs et USA 1. 5 1. 5
Pic aboo USA 1.0 1. 0
Mas hLo gic USA 0. 5 0. 5
J un-09 T otal 11.4 15.3 5.5 8.0 34.0 5.3 79.5

Figure 22. Financing, Last Three Months

Source. Company reports
 Page 16

C ompany Des c riptio ns - C urrent Mo nth C apital Market A c tivity

C ompany HQ W ebs ite Des criptio n
A dE x media U nited S ta tes www.adex.com Adex Media , I nc . operates a s an integrated I nternet ma rk eting, a dvertis ing, a nd lea d genera tion publisher, a s well as developer, ma rk eter,
a nd dis tributor of con sumer produc ts in the U nited S tates . I ts mark eting platform prov ides v a rious services , including sea rc h mark eting,
displa y mark eting, lea d genera tion, a nd a ffilia te ma rketing; and offers pa y-per-performa nce pricing/cost-per-action/pay-per-a ction based
services . T he company also provides O vernight G enius , a computer learning cours e for MS W indows , MS O ffic e, eB a y , and others; R is ing
S ta r L earning, a ma th a nd la nguage arts educa tional produc t for c hildren; D ebt S nap, a n audio s eminar to help consumers ma na ge their
beeTV U nited S ta tes www.bee.tv beeTV is y our v iewer’s own pers ona l c ha nnel tha t a ntic ipa tes their viewi ng needs a nd desi res while ta k ing i nto context their sc hedule,
beha viors a nd even their mood. I t uses a rev olutionary , proprietary, contex tual matching algorithm inc orpora ti ng “huma n unders tanding” to
offer y our viewer a n entertaining, person alized “cha nnel” a cces sible from a ll three sc reens - T V , mobile and P C . beeTV s ervices I P TV , ca ble,
satellite, mo bile, internet a nd D TT platforms . It is a complement to your exis ting na viga tion sy stem. It is a find engine rather tha n a s ea rch
engine.
C liqs et U nited S ta tes www.cliqset.com C liqs et, Inc . provides an online pla tform tha t allows developers a nd us ers to crea te, orga niz e, retrieve, s hare, and manipulate s ocia l
informa tion on the W eb, des ktop, a nd mobile env ironments. It brings together photos, bookmarks , a nd locations . The compa ny ’s pla tform
cons is ts of AP Is for managing va rious aspec ts of users ’ soc ia l identity giving the a bility to build s oc ial applic ations without recrea ting the
wheel. C liqs et, I nc. wa s founded in 2008 and is bas ed i n J a ck s onville, F lorida.
G am eG roun d I s ra el www.gameground.com G a meG round dev elops an onl ine s ocia l network for gamers . The compa ny is bas ed in I srael.
G ath er Inc . U nited S ta tes www.gather.com G a ther, Inc . opera tes a s ocia l network ing s ite for adults. I t ena bles us ers to s hare thoughts, c onv ers a tions, v ideo, information, pictures ,
ideas, a nd a udio. G a ther, I nc. wa s formerly k nown as S uffic iently Adva nced T ec hnology Corporation a nd cha nged its na me to G ather, I nc. in
J uly 2005. The compa ny wa s incorpora ted in 2004 and is hea d quartered in B os ton, Ma s sac hus etts. G a ther, I nc. opera tes as a s ubsidia ry of
American P ublic M edia G roup.
G rab N etworks U nited S ta tes www.grabnetworks.com G ra b N etworks , I nc. di stributes a nd monetiz es vi deo content on the I nternet. G ra b Network s, I nc. was formerly known as Any S trea m, I nc .
a nd c ha nged its name to G rab N etworks , I nc. in S eptember 2008. T he c ompany was founded i n 2000 a nd is headqua rtered in D ulles,
Inigral U nited S ta tes www.inigral.com V irginia
Inigra l, .Inc. engages in the development of s oc ial network ing website for students , their peers a nd their ins tru ctors. I nigra l, I nc. is based in
P alo A lto, C alifornia .
Mas h Logic U nited S ta tes www.mashlogic.com Ma s hLogic I nc. enga ges in developing cus tomized web brows ers. The company was founded in 2007 a nd is ba sed in Menlo P ark, C alifornia.

m y6s ens e I s ra el www.my6sense.com my 6s ense Inc . prov ides mobi le technology s olutions. I t offers D igita l I ntuition tha t c onnec ts us ers with content providing wa y to experienc e
informa tion on mobile and desk top. The compa ny wa s founded in 2007 a nd is ba s ed in Herz liya P itua ch, I s ra el.
P ic aboo U nited S ta tes www.picaboo.com P ic aboo C orporation provides onli ne photo book s a nd cards . I t offers a software progra m tha t turns photos into photo book s. The company
was founded in 2002 a nd is ba sed in M enlo P a rk , C a lifornia .
R ing R evenu e U nited S ta tes www.ringrevenue.com R ing R ev enue, I nc. prov ides online call trac k ing s ervices . The company was incorporated in 2009 a nd is ba sed in S a n ta B arba ra , C a lifornia .
S ugar In c. U nited S ta tes www.sugarinc.com S uga r, I nc. operates a s an online media compa ny . It operates lifes ty le a nd enterta inment W ebsites that cov er celebrity, fa s hion, shopping,
bea uty , entertainment, food, a nd hea lth topics . T he c ompany also offers a shopping engine for fa s hion and beauty categories . S ugar, I nc. ,
formerly k nown as S uga r P ublishing, I nc ., wa s founde d in 2006 and is hea dqua rtered in S a n Francisc o, C alifornia.
W imba Inc U nited S ta tes www.wimba.com W imba , Inc . provides learning s oftwa re a pplic a tions a nd s ervices to the educ a tion indus try in the Un ited S ta tes and the United K ingdom. The
company offers D iploma , a qu estion authoring an d management tool tha t allows ins truc tors to c reate or edit ques tions; C la s sroom 5. 2, a
clas s room environment with va rious features that include audio, vid eo, a pplica tion sharing, and c ontent dis pla y; and C ollabora tion S uite tha t
a llows ins titutions to bridge the gap between technology a nd peda gogy by s upplementing cours e management s ys tems . It a ls o provides
C reate, a content authori ng tool, which c onverts M icros oft W ord doc uments into content for online cours es; P ronto, an a ca demic mes saging
pla tform, whic h is designed for educ ators to a dva nc e and promote lea rning; V oic e, a W eb-ba s ed voic e s olution th at fa cilita tes and promotes
voc al in struction, colla bora tion, c oa c hing, a nd a s s ess ment; and C M S Integra tion. I t s erves univ ersities , community colleges , s chool districts ,
a nd educ ation ins titutions. T he company was formerly known as H orizon W imba , Inc . a nd changed its na me to W imba , I nc. in April 2007.
W imba , Inc . wa s founded in 1998 and is ba sed in N ew Y ork , New Y ork with additiona l offic es in C a mbridge, U nited K ingdom; a nd A tlanta , G eorgia.
Yu Me U nited S ta tes www.yumenetworks.com Y uMe, I nc . operates a s a v ideo a dvertis ing network on W eb. I t offers a d mana gement sy stem tha t enables a dvertis ers a nd publishers to
identify, cla s sify , a nd tra ck content throu gh digita l media pla tforms, s uch a s W eb, downloads, mobile, a n d I P TV . The compa ny a ls o enables
publishers to orga nize video on their site i nto content cha nnels, s uch a s automotiv e, fi na ncial serv ices , lifesty le, news , music , s ports ,
enterta inment, a nd family friendly. In a ddition, it offers rea l-time ta rgeting, mea s urement, and optimiza tion; c ontent distribution and vira l
a dvertising opportunities ; a suite of intera ctiv e a d plac ements ; a nd v ideo monetiza tion s ervices . F urther, the c ompany provides a beha viora l
ta rgeting sy stem tha t enables advertis ers to target their mess ages to v iewers on a na tional sc a le ba s ed on v ideo v iewing interes ts and
purchas e intent. Y uMe, Inc . wa s founded in 2004 a nd is hea dquartered in R edwood C ity, C alifornia .
Z o os k U nited S ta tes www.zoosk.com Zoos k , Inc. opera tes a s an online s ocia l da ting network . The c ompa ny was founded in 2007 a nd is ba s ed in S an F ra nc isco, C a lifornia .

Figure 23. Company Descriptions

Source. Company reports, Capital IQ, Crunchbase
 Page 17

RELEVANT DISCLOSURES APPLICABLE TO: NONE

LIST OF DISCLOSURE TERMS:

1. None applicable.

ANALYST CERTIFICATION
Each analyst of 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.

I n f o r ma t i o n a b o u t Re s e a r ch C a p i t a l C o r p o r a t i o n ’ s Ra t i n g S y s t e m, t h e d i s t r i b u t i o n o f o u r r e s e a r ch t o cl i e n t s a n d t h e p e r ce n t a g e o f r e c o m me n d a t i o n s wh i c h a r e i n e a c h
o f o u r r a t i n g c a t e g o r i e s i s a v a i l a b l e o n o u r we b si t e a t ww w. r e s e a r ch c a p i t a l . c o m.

T h e i n f o r ma t i o n c o n t a i n e d i n t h i s r e p o r t h a s b e e n d r a wn f r o m s o u r c e s b e l i e ve d t o b e r e l i a b l e b u t i t s a c cu r a c y o r co mp l e t e n e ss i s n o t g u a r a n t e e d , n o r i n p r o vi d i n g i t
d o e s R e s e a r c h Ca p i t a l C o r p o r a t i o n a s s u me a n y r e sp o n si b i l i t y o r l i a b i l i t y . R e s e a r ch C a p i t a l C o r p o r a t i o n , i t s d i r e ct o r s , o f f i c e r s a n d o t h e r e mp l o y e e s ma y , f r o m t i me t o
t i me , h a v e p o si t i o n s i n t h e s e cu r i t i e s me n t i o n e d h e r e i n . Co n t e n t s o f t h i s r e p o r t c a n n o t b e r e p r o d u c e d i n wh o l e o r i n p a r t wi t h o u t t h e e xp r e ss e d p e r mi s si o n o f R e se a r ch
C a p i t a l C o r p o r a t i o n . ( U . S . I n s t i t u t i o n a l Cl i e n t s — Re s e a r ch C a p i t a l U . S. A . I n c. ( a wh o l l y o wn e d s u b si d i a r y o f R e s e a r c h C a p i t a l Co r p o r a t i o n ) a cc e p t s r e s p o n si b i l i t y f o r
t h e c o n t e n t s o f t h i s r e p o r t s u b je c t t o t h e t e r ms & l i mi t a t i o n s s e t o u t a b o v e . F i r ms o r i n s t i t u t i o n s r e ce i vi n g t h i s r e p o r t s h o u l d e f f e ct t r a n s a ct i o n s i n s e c u r i t i e s d i sc u s se d
i n t h e r e p o r t t h r o u g h R e s e a r ch C a p i t a l U . S . A . I n c. , a B r o k e r - D e a l e r R e g i s t e r e d wi t h t h e U n i t e d S t a t e s S e cu r i t i e s a n d E xc h a n g e C o m mi s si o n ) .

Tor on to 4 16. 8 60. 76 00 M ontr eal 51 4. 39 9. 150 0 V anco u ver 60 4. 66 2. 180 0 C al gar y 40 3. 26 5. 740 0 R egi na 306. 566. 7550

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