SOFTWARE & SERVICES 21 JULY 2009

DAVID SHORE, CFA, MBA 416.860.6784

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

VENTURE CAPITAL INVESTMENT PICKS UP, BUT STILL DO WN FROM LAST YEAR
H EAL T H C AR E I N T H E U NIT E D ST AT E S L E AD S IN S E CT O R IN V E ST M E NT S
In a report last week, VentureSource (a research unit of VentureW ire Publisher Dow Jones & Co.), states that venture
capital investment in the United States has picked up from its first quarter low, led by a strong rebound from the
health sector. It reported that 1,078 U.S venture-backed companies raised $9.28 billion in the first half of 2009. This
was 44% less than $16.47 billion raised by 1,459 companies in the first half of 2008. In the second quarter, 595
companies raised $5.27 billion compared with 483 companies raising $4 billion in the first quarter. The report goes on
to state that, for the second quarter, health care as a sector attracted $2.23 billion and surpassed the $1.89 billion
raised by the traditionally largest sector – information technology. Software as a sector (within IT) raised $1.41 billion
in the first half of 2009 ($696 million in Q2 and $715 in Q1) and was 41% below last year’s total. Biopharmaceuticals,
medical devices, health care services, and medical software and information services attracted the most investment
in healthcare.
Online Media companies lead financing: Two online media companies, Pandora (Internet Radio) and QuickPlay
(Mobile Video), have secured the largest financing transactions thus far in July ($35 million and $12 million,
respectively). Total capital raised so far in July is $114.2 million through 17 transactions, averaging $6.3 million per
transaction. June closed with $180 million in financing on 36 transactions. The averages for the months of May
(excluding the Facebook transaction) and June were $6.6 million and $4.9 million, respectively.

Financing Activity Last Three Months

200.0 7.0
6.6

180.0 6.3

6.0

160.0

5.0
140.0 4.9

120.0
4.0
(US$m)

(US$m)

100.0

3.0
80.0

60.0
2.0

40.0

1.0
20.0

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

Total Average

A strong price performance week: Most of the companies in our universe had strong stock price performances over
the past week (for stocks with prices greater than $1) (Figure 6), with only eight companies showing negative returns
on the week. CDC Corp. (NasdaqGS:CHIN.A) led the group with a 54.9% return, while GigaMedia Ltd.
(NasdaqGS:GIGM) had the worst return, dropping 5.7% 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 two public Web 2.0 companies identified: Our W eb 2.0 universe contains 92 companies, with a combined market
cap of ~$61.2 billion (Figure 1). The average market cap for the group is ~$679.9 million (but a median of only $50.4
million), with average trailing revenue of $151.1 million (median $55.0 million). The companies are also generally
profitable, with a median EBITDA margin of 13.2%. On a valuation basis, the overall average is 6.1x trailing revenue
(median 2.1x) and 9.3x trailing EBITDA (median 9.6x). Twenty of the companies have more than 500 employees.
C omparable C ompany Analys is > Web 2.0
Trading C urrent US D Market US D L TM Total US D L TM Total E B ITDA TE V/L TM TE V/L TM
C ompany Name L TM as of Ticker E xc hange C urrency HQ P rice C ap ($m) R ev ($m) E B ITDA ($m) % R evenue E B ITDA E mployees
Accelerize New Media , Inc. 3/31/2009 AC LZ OT C B B US D United S ta tes 0. 57 15. 8 4. 1 (4.4) NM 5. 1x - 11
Actoz S oft C o. , Ltd. 3/31/2009 A052790 K OS E KR W S outh K orea 27,250 188. 6 92. 7 20. 1 21. 7% 1. 7x 7. 9x NA
AQ Interactive, Inc. 3/31/2009 3838 TS E JPY J a pan 55,000 31. 6 65. 3 4.1 6.3% 0. 0x 0. 5x NA
As s ociated Media Holdings Inc. 6/30/2007 AS MH OT C P K US D United S ta tes 0. 02 0.9 0. 1 (2.3) NM 19.2x - 3
B igs tring C orp. 3/31/2009 BS GC OT C B B US D United S ta tes 0. 04 2.2 0. 1 (2.0) NM 49.9x - 4
B eta wave C orporation 3/31/2009 B W AV OT C B B US D United S ta tes 0. 12 3.4 8. 4 (12. 6) NM - - 53
B eyond C ommerce, Inc. 3/31/2009 B Y OC OT C B B US D United S ta tes 0. 35 15. 7 7. 1 (9.5) NM 2. 9x - 69
B right T hings plc 9/30/2008 AIM: B G T AIM GBP United K ingdom 0. 02 4.8 0. 3 (1.9) NM 17.6x - 9
B roa dW ebAs ia Inc. 9/30/2008 BWBA OT C P K US D United S ta tes 0. 23 19. 5 0. 0 (4.6) NM - - 46
C DC C orp. 3/31/2009 C HIN. A Na s daqG S US D Hong K ong 2. 20 233. 4 389.9 30. 8 7.9% 0. 6x 8. 0x 2, 227
C hangyou. com L imited 3/31/2009 C Y OU Na s daqG S US D C hina 45. 29 2,491. 0 222.5 135.1 60. 7% 10.4x 17. 1x 628
C hina G a teway C orporation 9/30/2008 CGWY OT C P K US D United S ta tes 0. 02 0.3 6. 7 (6.6) -98. 9% 0. 0x - 37
C hines e G amer Interna tiona l 3/31/2009 G T S M: 3083 GTS M TWD T aiwa n 501 1,286. 1 56. 4 31. 6 56. 0% 21.6x 38. 6x NA
C LIC K E R Inc. 2/28/2009 C LK Z OT C B B US D United S ta tes 0. 01 0.9 7. 2 2.4 34. 1% 0. 0x 0. 1x 22
C ornerW orld C orpora tion 1/31/2009 CWR L OT C B B US D United S ta tes 0. 05 3.2 1. 3 NM NM 3. 6x - NA
C yberplex Inc. 3/31/2009 T S X :C X TS X C AD C anada 2 90. 7 73. 6 7.6 10. 3% 1. 2x 11. 4x NA
DADA S pA 3/31/2009 C M: DA CM E UR Italy 5. 98 137. 8 238.9 34. 9 14. 6% 0. 8x 5. 4x 578
DXN Holdings B hd 2/28/2009 DX N K LS E MY R Ma la ys ia 0. 43 27. 7 78. 1 10. 8 13. 8% 0. 5x 3. 8x NA
Dibz International, Inc. NA DIB Z OT C P K US D United S ta tes 0. 00 0.0 NA NM NM - - NA
DigitalP os t Interactive, Inc. 3/31/2009 DG LP OT C B B US D United S ta tes 0. 04 2.6 0. 7 (2.6) NM 5. 8x - 7
DigitalT own, Inc. 5/31/2009 DG T W OT C B B US D United S ta tes 2. 00 54. 2 NM (2.5) NM - - 3
Dolphin Digital Media , Inc. 3/31/2009 DP DM OT C B B US D United S ta tes 0. 33 17. 1 0. 8 (3.7) NM 23.3x - NA
E olith C o. Ltd. 12/31/2008 A041060 K OS E KR W S outh K orea 790 46. 0 14. 8 (3.5) -23. 6% 3. 2x - NA
E xtens ions , Inc. 3/31/2009 E XT I OT C P K US D United S ta tes 0. 08 3.6 NM NM NM - - 2
F luid Mus ic C a nada , Inc. 3/31/2009 T S X :F MN TS X C AD United S ta tes 0. 89 42. 2 5. 0 (6.9) NM 6. 6x - NA
F rogs ter Interactive P ictures AG 12/31/2008 FRG XT R A E UR G ermany 12. 20 40. 8 3. 3 (6.2) NM 11.9x - NA
G ama nia Digita l E ntertainment C o., Ltd. 3/31/2009 6180 GTS M TWD T aiwa n 67. 00 310. 6 126.5 21. 0 16. 6% 2. 3x 13. 7x NA
G ameOn C o Ltd. 3/31/2009 3812 TS E JPY J a pan 106,000 108. 3 77. 8 18. 4 23. 7% 0. 6x 2. 5x NA
G eoS entric O yj 3/31/2009 G E O 1V HL S E E UR F inland 0. 04 51. 1 6. 0 (15. 6) NM 7. 8x - 108
G iant Interactive G roup, Inc. 3/31/2009 GA NY S E US D C hina 8 1,750. 3 219.1 NM NM - - 1, 570
G iga Media Ltd. 3/31/2009 G IG M Na s daqG S US D T aiwa n 5. 11 278. 6 183.6 NM NM 1. 1x - 751
G ravity C o., Ltd 3/31/2009 GR VY Na s daqG M US D S outh K orea 1. 59 44. 2 46. 0 12. 6 27. 5% - - 469
G ree, Inc. 6/30/2008 T S E : 3632 TS E JPY J a pan 6,780 1,604. 3 31. 1 11. 2 36. 0% 49.0x - NA
G ungHo O nline E ntertainment, Inc. 3/31/2009 3765 OS E JPY J a pan 210,000 254. 3 108.9 19. 6 18. 0% 2. 1x 11. 5x NA
HanbitS oft, Inc. 3/31/2009 A047080 K OS E KR W S outh K orea 4,650 81. 8 55. 4 (14. 9) -26. 8% 1. 2x - NA
IAC /InterActiveC orp. 3/31/2009 IAC I Na s daqG S US D United S ta tes 17. 27 2,606. 3 1, 406. 4 42. 6 3.0% 0. 5x 16. 9x 3, 200
IAS E nergy, Inc. 1/31/2009 IAS C . A OT C B B US D C anada 0. 11 7.7 0. 0 (0.8) NM - - NA
is eemedia Inc. 3/31/2009 IE E T S XV C AD C anada 0. 10 4.6 1. 5 (5.0) NM 2. 4x - NA
J umbuck E nterta inment P ty Ltd. 12/31/2008 AS X :J MB AS X AUD Aus tralia 0. 38 15. 2 14. 6 5.4 37. 2% 0. 7x 1. 9x 72
K AB Dis tribution Inc. 3/31/2009 T S X :K AB TS X C AD C anada 1 79. 7 74. 4 8.8 11. 9% 1. 1x 9. 6x NA
K ings oft C o. Ltd. 3/31/2009 3888 S E HK HK D C hina 7 969. 5 129.1 52. 0 40. 3% 7. 3x 18. 1x 2, 271
Lingo Media C orporation 3/31/2009 T S X V :LM T S XV C AD C anada 1. 20 13. 5 0. 9 (1.6) NM 13.3x - NA
LiveW orld Inc. 3/31/2009 LVW D OT C P K US D United S ta tes 0. 05 1.4 11. 4 (0.0) -0.4% 0. 0x - NA
LookS mart, Ltd. 3/31/2009 L OO K Na s daqG M US D United S ta tes 1. 12 19. 1 60. 7 (3.8) -6.3% - - 90
Magnitude Information S ys tems Inc. 3/31/2009 MAG Y OT C B B US D United S ta tes 0. 01 4.1 0. 1 (3.1) NM - - 14
Mixi, Inc. 3/31/2009 2121 TS E JPY J a pan 686000. 00 1,114. 9 127.4 45. 2 35. 4% 7. 8x 22. 0x NA
Modern T imes G roup Mtg AB 3/31/2009 MT G B OM SEK S weden 238. 00 2,019. 9 1, 733. 7 265.6 15. 3% 1. 5x 9. 7x 2, 969
MO K O .mobi Limited 12/31/2008 MK B AS X AUD Aus tralia 0. 06 4.2 1. 2 (2.4) NM 2. 6x - NA
Myriad G roup AG 12/31/2008 MY R N SWX C HF S witzerland 4. 52 90. 1 40. 0 0.8 1.9% 2. 5x - 405
NE O W IZ G ames C orpora tion 12/31/2008 A095660 K OS E KR W S outh K orea 31900. 00 539. 1 198.8 53. 4 26. 8% 2. 7x 9. 9x NA
NetDragon W ebS oft, Inc. 3/31/2009 777 S E HK HK D C hina 6 410. 6 87. 0 34. 4 39. 5% 3. 2x 8. 1x 2, 426
Neteas e. com Inc. 3/31/2009 NT E S Na s daqG S US D C hina 40. 98 5,263. 0 470.7 305.9 65. 0% - - 3, 109
NeuLion Incorporated 3/31/2009 T S X :NLN TS X C AD C anada 0. 91 93. 8 18. 1 (12. 0) -66. 6% 4. 6x - 237
NeXplore C orporation 6/30/2008 NX P C OT C P K US D United S ta tes 0 25. 1 0. 7 (6.2) NM 41.2x - NA
Ngi G roup Inc. 3/31/2009 2497 TS E JPY J a pan 32650. 00 42. 7 93. 4 11. 2 12. 0% 0. 0x 0. 2x NA
Northgate T echnologies L imited 3/31/2009 590057 BSE INR India 36. 00 26. 0 116.2 (27. 3) -23. 5% 0. 2x - NA
O pen T ext C orp. 3/31/2009 OT E X Na s daqG S US D C anada 36. 84 1,938. 6 782.6 199.2 25. 5% 2. 6x 10. 1x 3, 400
O penwave S ys tems Inc. 3/31/2009 OP W V Na s daqG S US D United S ta tes 2. 93 244. 1 197.2 (2.1) -1.0% 0. 7x - 630
P erfect W orld C o. , Ltd. 3/31/2009 PWRD Na s daqG S US D C hina 35. 00 1,702. 3 228.2 124.6 54. 6% 0. 4x 0. 7x 2, 096
P NI Digital Media Inc. 3/31/2009 T S X V :P N T S XV C AD C anada 1. 50 46. 4 19. 6 0.5 2.3% 2. 3x - NA
Q uepa s a C orp. 3/31/2009 QP S A OT C B B US D United S ta tes 1 12. 1 0. 1 (10. 8) NM - - 74
O AO R B C Information S ys tems 12/31/2007 R BCI R TS US D R us s ia 0. 75 104. 0 152.7 19. 9 13. 1% 0. 0x 0. 2x NA
S handa Interactive E nterta inment Ltd. 3/31/2009 S NDA Na s daqG S US D C hina 60. 19 4,018. 8 570.3 261.0 45. 8% 0. 2x 0. 4x 3, 124
S hutterfly, Inc. 3/31/2009 S FLY Na s daqG S US D United S ta tes 14. 11 355. 2 215.2 28. 3 13. 2% 1. 3x 10. 2x 514
S K C ommunications C o., Ltd. 12/31/2008 A066270 K OS E KR W S outh K orea 9550. 00 321. 3 184.8 12. 0 6.5% 1. 7x 26. 7x NA
S NAP Interactive, Inc. 3/31/2009 S TVI OT C B B US D United S ta tes 0 4.9 3. 3 0.9 28. 0% 1. 0x 3. 7x 11
S NM G loba l Holdings 9/30/2008 S NMN OT C P K US D United S ta tes 0. 00 0.0 2. 0 (0.7) -34. 8% 1. 1x - 33
S ocial Media V enures , Inc. 12/31/2008 S MV I OT C P K US D United S ta tes 0 0.0 0. 1 (0.1) -60. 5% 4. 6x - NA
S ocialwis e, Inc. 3/31/2009 S C LW OT C B B US D United S ta tes 0. 80 34. 7 0. 0 (4.8) NM - - NA
S ohu. com Inc. 3/31/2009 S O HU Na s daqG S US D C hina 64. 90 2,483. 3 460.0 200.5 43. 6% 4. 6x 10. 6x 3, 197
S park Networks , Inc. 3/31/2009 L OV AME X US D United S ta tes 2 49. 8 54. 3 11. 8 21. 7% 0. 9x 4. 3x 183
S pectrumDNA, Inc. 3/31/2009 S P XA OT C B B US D United S ta tes 0 7.3 0. 1 (2.6) NM - - 7
T encent Holdings Ltd. 12/31/2008 700 S E HK HK D C hina 107 24, 804.2 1, 047. 2 512.2 48. 9% 26.2x - 6, 194
T he P arent C ompany 8/2/2008 K IDS . Q OT C P K US D United S ta tes 0. 03 0.7 112.0 (13. 5) -12. 0% 0. 2x - 347
T he9 Limited 12/31/2008 NC T Y Na s daqG S US D C hina 8. 80 224. 5 250.5 85. 4 34. 1% - - 1, 626
T heS treet. com, Inc. 3/31/2009 TS CM Na s daqG M US D United S ta tes 1. 99 60. 9 67. 0 1.9 2.9% - - 310
T ota l S port O nline AS 3/31/2006 T OS O O T C NO NO K Norway 0. 03 0.1 2. 1 (1.1) -50. 6% 4. 6x - 16
T ree.C om, Inc. 3/31/2009 TR E E Na s daqG M US D United S ta tes 9. 98 107. 8 215.6 (13. 3) -6.2% 0. 5x - 700
Unis erve C ommunica tions C orp. 2/28/2009 T S X V :US S T S XV C AD C anada 0. 10 2.2 23. 5 0.1 0.2% 0. 2x - NA
United O nline Inc. 3/31/2009 UNT D Na s daqG S US D United S ta tes 8. 14 680. 3 811.2 177.3 21. 9% 1. 2x 5. 4x 1, 469
UOMO Media, Inc 1/31/2009 UO MO OT C B B US D C anada 0 9.4 0. 6 (0.5) -78. 2% 15.4x - NA
V alueC lick Inc. 3/31/2009 V C LK Na s daqG S US D United S ta tes 11 988. 0 591.7 105.5 17. 8% 1. 5x 8. 4x 1, 189
V OIS , Inc. 3/31/2009 V O IS OT C B B US D United S ta tes 0 5.0 0. 0 (1.1) NM - - 4
W ebzen Inc. 3/31/2009 W ZE N Na s daqG M US D S outh K orea 3. 54 42. 0 23. 1 (0.5) -2.4% - - NA
W izzard S oftwa re C orporation 3/31/2009 W ZE AME X US D United S ta tes 0. 48 22. 9 5. 6 (5.3) -94. 5% 4. 3x - 110
W orlds . com Inc. 3/31/2009 W DDD OT C B B US D United S ta tes 0. 14 7.3 0. 0 (0.8) NM - - 1
W oozyF ly, Inc. 3/31/2009 W ZY F OT C B B US D United S ta tes 0. 15 2.6 NM NM NM - - NA
W ynds torm C orpora tion NA W Y ND OT C P K US D United S ta tes 0. 10 1.8 NA NM NM - - NA
XING AG 3/31/2009 O 1B C XT R A E UR G ermany 28. 50 213. 6 53. 8 16. 8 31. 2% 3. 0x 9. 6x 239
Y eda ngO nline C orp. 12/31/2007 A052770 K OS E KR W S outh K orea 7,940 100. 1 55. 0 11. 9 21. 6% 2. 0x 9. 3x NA
Y nk K orea Inc. 3/31/2009 A023770 K OS E KR W S outh K orea 5,920 25. 4 10. 6 (0.8) -7.6% - - NA
ZipLocal Inc. 3/31/2009 T S X V :ZIP T S XV C AD C anada 0. 01 0.4 2. 7 (2.1) -78. 3% 49.9x 38. 6x NA
High 24, 804.2 1,733. 7 512. 2 65. 0% 49.9x 38. 6x 6, 194
Low 0.0 0. 0 -27.3 -98. 9% 0. 0x 0. 1x 1
Average 679.9 151.1 33.0 8.2% 6.1x 9.3x 901
Median 50. 4 55.0 0. 8 13. 2% 2. 1x 9. 6x 437

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 )
Online Media companies lead financing: Two online media companies, Pandora (Internet Radio) and QuickPlay (Mobile
Video), have secured the largest financing transactions thus far in July ($35 million and $12 million, respectively). Total
capital raised so far in July is $114.2 million through 17 transactions, averaging $6.3 million per transaction. June closed
with $180 million in financing on 36 transactions. The averages for the months of May (excluding the Facebook
transaction) and June were $6.6 million and $4.9 million, respectively.

Financing Activity Last Three Months

200.0 7.0
6.6

180.0 6.3

6.0

160.0

5.0
140.0 4.9

120.0
4.0
(US$m)

(US$m)
100.0

3.0
80.0

60.0
2.0

40.0

1.0
20.0

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

Total Average

Figure 2. Financings, Last Three Months

Source. Company reports
 (US$m)

0.0
50.0
100.0
150.0
200.0
250.0
Facebook
People Media
AdLink Internet Media

Source. Company reports

Pandora Media
StumbleUpon
One Net
ConnectEdu
Sugar Inc.
Tumri
Boku
Cyberplex
QuickPlay Media
Wimba
Grab Networks

Figure 3. Capital Market Activity, Last Three Months

Peer39
AdChina
Causes
OpenX
Intent Media
Imeem
Goojet SAS
Outspark
EveryZing
AdMeld Inc.
beeTV
SBNation
I Love Rewards
BlogHer Inc.
WonderHill
Gist
blueKiwi Software SA
financings, see Figures 23 and 24 (at end of note).

Nokeena
Metaversum
Fuhu Inc.
Azuki Systems
Invodo
Sense Networks
Zoosk
Gather
OLX
MojoPages
TimeBridge
DocuSign
Taomee
Animoto
GameGround
Medialets
Nexage
StyleCaster
RingRevenue
TweetDeck
Crowdcast
YuMe
eRepublik
ProtonMedia
ClickFuel
Newser LLC
Financing & M/A Summary - Last Three Months

Inigral
AdEx Media
GROU.PS
Resonate Networks
Yapta
OneTXT
my6sense
Mo'Minis
Cliqset
Lat49
Aloqa
VoxPop
Tributes.com
CoTweet
Glubble
Picaboo
Clikthrough
AdWhirl
TodaCell
LiquidPlanner
Loop'd Network
People Capital
MashLogic
Jaxtr
Jul-09
Jun-09
May-09
Page 4

its revenue from advertising, indicated that it would be joining the new agreement as well. For additional details on
copyright holders reached agreement with a group of webcasters regarding royalty rates. Pandora, which derives most of
Pandora raises $35 million: Pandora had the largest raise so far in July, securing a $35 million round. Recently,
 Page 5

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
($250.5 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 (16), raising $137.7 million (Figure 4).

Capital Market Activity by Sector - Last Three Months

300.0

250.0

200.0
(US$m)

150.0

250.5

100.0

137.7

50.0
80.0

35.0 31.0 29.0 26.6 26.4 25.8 21.5 19.3 18.9 17.5 17.0 16.5 13.3 13.0 6.8 6.3 5.2
0.0 3.2 1.0 1.0
Comment/Reputation

Mobile Payment

Communities
Online Dating

Gaming

Mobile

Enterprise

Online Learning

Collaboration

Media

Microblog

Publishing
Music

Blog

Infrastructure

Search

Mobile Ad
Widget
Social Networks

Virtual World

Video

Aggregation
Ad Network

Vertical
# companies
12 16 1 1 3 1 4 4 5 4 6 3 5 3 3 2 1 1 1 2 1 1 1

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

Source. Company reports
 Page 6

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).

120
Web 2.0 Index Price Performance

110

100

90

80

70

60

50

40
7/21/2008

8/4/2008

8/18/2008

9/1/2008

9/15/2008

9/29/2008

10/13/2008

10/27/2008

11/10/2008

11/24/2008

12/8/2008

12/22/2008

1/5/2009

1/19/2009

2/2/2009

2/16/2009

3/2/2009

3/16/2009

3/30/2009

4/13/2009

4/27/2009

5/11/2009

5/25/2009

6/8/2009

6/22/2009

7/6/2009

7/20/2009
^COMP - Share Pricing Index: Web 2.0 X (Market Cap Weights) - Index Value

Figure 5. Web 2.0 Price Performance

Source. Capital IQ
 Page 7

A strong price performance week: Most of the companies in our universe had strong stock price performances over the
past week (for stocks with prices greater than $1) (Figure 6), with only 8 companies showing negative returns on the
week. CDC Corp. (NasdaqGS:CHIN.A) led the group with a 54.9% return, while GigaMedia Ltd. (NasdaqGS:GIGM) had the
worst return, dropping 5.7% in the week.

1 Week P rice P erformance

CDC Corp. 54.9%
Openw ave S y s tems Inc. 27.9%
K ings oft Co. Ltd. 26.5%
Northgate Technologies Limited 23.9%
Tencent Holdings Ltd. 22.3%
Perf ect World Co., Ltd. 21.6%
G amania Digital Entertainment Co., Ltd. 21.4%
Changy ou.com Limited 20.4%
S hutterf ly , Inc. 17.6%
Neteas e.com Inc. 17.1%
Chines e G amer International 16.5%
United Online Inc. 16.3%
S handa Interactive Entertainment Ltd. 16.2%
S ohu.com Inc. 10.1%
G ravity Co., Ltd 9.7%
V alueClick Inc. 9.5%
Webz en Inc. 7.9%
Modern Times G roup Mtg A B 7.7%
HanbitS oft, Inc. 7.5%
IA C/InterA ctiveCorp. 7.2%
Frogs ter Interactive Pictures A G 6.1%
NetDragon WebS oft, Inc. 5.8%
A ctoz S oft Co., Ltd. 5.6%
S K Communica tions Co., Ltd. 5.5%
Eolith Co. Ltd. 4.6%
Tree.Com, Inc. 4.1%
PNI Digital Media Inc. 3.4%
NEOWIZ G ames Corporation 2.9%
G iant Interactive G roup, Inc. 2.6%
Open Tex t Corp. 2.3%
The9 Limited 1.7%
S park Netw orks , Inc. 0.8%
Y edangOnline Corp. 0.5%
TheS treet.c om, Inc. -0.3%
L ookS ma rt, Ltd. -1.8%
Cy berplex Inc. -2.5%
DA DA S pA -2.8%
My riad G roup A G -3.8%
Y nk K orea Inc. -4.5%
X ING A G -5.4%
G igaMedia Ltd. -5.7%
-10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

Figure 6. 1-Week Price Performance

Source. Capital IQ

INDUSTRY NEWS (PARTNERSHIPS, FINANCIAL RESULTS, NEW PRODUCTS)
K ey Developments
C ompany
GigaMedia L td. (Nas daqGS : G IG M)
Alltel C orporation; MOK O.mobi L imited MOK O .mobi Limited Announces Agreenment with Alltel
(AS X: MK B )
Open Text C orp. (Nas daqGS : OTE X)
NeuL ion Inc orporated (TS X: NL N)
Open Text C orp. (Nas daqGS : OTE X)
Hurray! Holding C o. L td.
(Nas daqG M: HR AY); S handa Interactive S NDA) completed the acquis ition of a 51% s take in
E ntertainment L td. (Nas daqGS : S NDA) Hurra y! Holding C o. Ltd. (Na s daqG M: HR AY ).
GeoS entric Oyj (HL S E : G E O1V)
Gamania Digital E ntertainment C o.,
L td. (GTS M: 6180)
Giant Interactive G roup, Inc .
(NYS E : GA)
DigitalTown, Inc . (OTC B B : DGTW)
P NI Digital Media Inc . (TS XV: P N); Wal- P NI Digita l Media a nd W a l-Mart C anada T eam Up to
Mart C anada C orp.
DigitalP os t Interac tive, Inc .
(OTC B B : DG L P )
Figure 7. Key Developments
Source. Capital IQ
Headline
G igaMedia Ltd. ha s filed a S helf R egis tration in the
amount of $15. 28 million.
C orpora tion
C a nopius S elects O pen T ext E C M S uite
J umpT V Inc. will C ha nge its T icker to NL N from J T V
S a int Micha el's Medical C enter Implements O pen T ext's
C onnectivity S olution
S handa Interactive E ntertainment L td. (Na s daqG S :
G eoS entric O yj Announces C hina Unicom C hoos es
G yP S ii for 3G Mobile S ocial Networking in C hina
G a ma nia Digita l E nterta inment C o. Ltd. R eports S a les G ama nia Digita l E ntertainment C o. L td. reported s a les res ults for the month a nd s ix months ended J une 2009. T he company s aw revenue
R es ults for the Month and S ix Months E nded J une 2009 ; grow 68.7% year on yea r in J une to T W D 470 million, due to game fans ' s upport for the firm's new product, Atlantica , and to the popula r
P rovides S a les G uida nce for the T hird Quarter of 2009
G ia nt Intera ctive G roup Inc. to La unch New E xpa ns ion
P a ck for ZT Online
Digita lT own Inc. R eports E a rnings R es ults for the F irs t
Quarter E nding Ma y 31, 2009
Offer Online P rinting S ervices for S mall B us ines s es
Digita lP os t Interactive Inc. to Develop R ebra nd of F a mily Digita lP os t Interactive Inc. s igned two contra cts during the month of J uly; a rebra nd of their family webs ite pla tform na med F a milyDrive. com
W ebs ite P la tform and B as eball P hotogra phy S ite
Page 8
Notes
G iga Media L td. has filed a S helf R egis tra tion in the amount of $15. 28 million.
MOK O. mobi L imited has completed a contra ct to provide MO K O .mobi on the Ma xx W ireles s Alltel O pen P ortal pla tform. Alltel ha s a
cus tomer ba s e of a round 15 million and is a s ubs idiary of V erizon W ireles s . T he s ervice is ba s ed on a us er-pays s ubs cription and premium
a ctivity bus ines s model, where MO K O .mobi is paid a s ha re of thes e revenues from the mobile operator. T his contract follows other
internationa l deployments of MOK O .mobi in recent months , including India, P hilippines a nd Mala ys ia .
O pen T ext C orp. announced tha t C anopius ha s s elected the Open T ext E C M S uite to improve proces s es , reduce filing cos ts a nd, more
importa ntly, s upport the implementation of electronic trading. R ea lizing the ever-increas ing ma rket demand for electronic tra ding, C a nopius
unders ta nds the need for a document ma na gement a nd workflow s ys tem that would enable the orga nization to excha nge informa tion
electronica lly with brokers and third pa rties around the world. F ollowing a rigorous evaluation proces s , C a nopius chos e the Open T ext E C M
S uite, pa rticula rly for its bus ines s proces s ma na gement a nd document ma na gement capabilities . O ne of the key factors in the decis ion wa s
tha t O pen T ext could offer a n integrated document ma na gement a nd bus ines s proces s mana gement s olution, reducing s ys tem integration
concerns .
E ffective J uly 16, 2009, J umpT V Inc. will change its T S X s tock ticker s ymbol to NL N from J T V .
S a int Michael's Medical C enter ha s implemented O pen T ext C orp. 's connectivity s olution, Hos tE xplorer, to replace its exis ting termina l
emula tor. Hos tE xplorer helps to provide organizations with a wa y of protecting their inves tment in lega cy data, while letting them benefit from
the la tes t in des ktop a nd web-bas ed technologies . W ith Hos tE xplorer, S a int Michael's was a ble to repla ce its exis ting termina l emula tion
s olution with lower a cquis ition cos ts , due to a flexible maintena nce contra ct, a nd a learning curve that elimina ted the need to retra in the
entire orga niza tion. According to O pen T ext, a s ecure web-to-hos t a nd P C -to-hos t s olution, Hos tE xplorer fa cilitates acces s to bus ines s
critica l informa tion s tored on legacy s ys tems , s uch as ma inframes and AS /400. It offers a low-ris k deployment s tra tegy and a n integration
path to compa nies tha t are cons idering moving a wa y from their current emula tion s olutions .
S handa Intera ctive E ntertainment Ltd. (Nas daqG S : S NDA) made a non binding indicative propos a l to a cquire a 51% s take in Hurra y! Holding
C o. Ltd. (Na s daqG M: HR AY ) for $40. 3 million in ca s h on April 13, 2009. S ha nda Intera ctive E nterta inment agreed to a cquire 11. 2 million
ADS a t $3. 6 per ADS . On April 19, 2009, S handa Interactive E ntertainment revis ed the offer price to $3.48 per ADS . T his changed the tota l
dea l va lue to $39 million. S handa Intera ctive E ntertainment s igned a term s heet to a cquire a 51% s take in Hurray! Holding C o. L td.
(Nas da qG M: HR AY ) on April 22, 2009. S ha nda Interactive E nterta inment L td. (Nas da qG S : S NDA) s igned a definitive a greement to a cquire a
51% s take in Hurray! Holding C o. L td. (Nas da qG M: HR AY ) for $39. 6 million in cas h on J une 8, 2009.
S handa Intera ctive E ntertainment will commence a tender offer to a cquire 51% of the tota l outs ta nding ordina ry s ha res of Hurra y! on a fully
diluted bas is a t a price of $4 per ADS or $0. 04 per ordina ry s hare. S ha nda Interactive E nterta inment will acquire 11.55 million ADS of Hurray
Holdings . One ADS of Hurra y Holding repres ents 100 ordina ry s ha res of Hurra y Holdings . T he trans action will be fina nced through cas h in ha n
G eoS entric Oyj announced its partners hip with C hina Unicom's S ha ngha i Unicom, to become the premier mobile s ocial network s olution for
its new cons umer 3G S NS S ervice, UniS pa ce. T his roll out will expand to 130 +million s ubs cribers in C hina . As part of the G yP S ii
community, UniS pa ce members ca n immedia tely s tart to crea te 'geota gged' content for s ha ring in 'real-time' with friends , family and the
growing globa l community of G yP S ii members . T he content tha t UniS pace members create becomes true Internet-s earcha ble des tinations
a nd experiences , ava ilable for a ll G yP S ii friends and communities acros s the globe to immediately find, s hare a nd comment on. G yP S ii us es
va rious hands et location technologies -including G P S , A-G P S and cell ID-to a llow S ha nghai Unicom cus tomers to a utoma tically ta g their
loca tion with photos , video, s ta tus updates a nd other informa tion, for s haring their experiences in rea l-time.
online ga me ca lled L inea ge.
F or the s ix months period, the compa ny recorded cons olida ted s ales of T W D 2. 69 billion, up 42. 10% from a year ea rlier
In the third qua rter of 2009, the compa ny is likely to s ee revenues exceeding the T W D 1. 37 billion recorded in the firs t qua rter.
G iant Interactive G roup Inc. is s cheduled to la unch S heng E r Y u Nv, the bigges t expans ion pa ck for its popular game ZT O nline, on J uly 17,
2009. T he new ZT O nline expa ns ion vers ion will introduce dozens of a dditiona l fea tures s uch a s ga me-pla ying directions a nd tips , bringing
thrilling experience to gamers . G ia nt Interactive will beef up product promotion a fter la unching the new expa ns ion vers ion of ZT O nline. T he
online ga me developer wa s dedica ted to the R & D of the new expa ns ion pack in the firs t quarter. G ia nt Intera ctive is s et to roll out four online
games current year, of which three are mas s ively multipla yer online role playing ga mes (MMOR P G s ) a nd the remainder one is a webga me.
Digita lT own Inc. reported ea rnings res ults for the firs t qua rter ending May 31, 2009. Net los s for the quarter wa s $419, 954, up from $905, 003
for the s a me quarter in the previous year (2007-2008).
P NI Digital Media Inc. announced tha t it has tea med up with W al-Ma rt C a na da C orp. to offer a ra nge of printing s ervices a nd products to fit
the needs of s mall bus ines s es . P art of the W alma rt P hoto C entre loca ted a t www. wa lmartphotocentre. ca, B us ines s P rinting ena bles s ma ll
bus ines s owners a nd cons umers to ea s ily order ma rketing a nd bus ines s materia ls us ing des igns provided by P NI Digital Media . P roducts
include bus ines s ca rds , notepa ds , letterhea ds , envelopes , fliers and pos ters . W almart B us ines s P rinting a ls o offers s ervices s uch as color,
black & white copy s ervices and coil-bound printing s ervices . F urthermore, the P NI-powered B us ines s P rinting s ervice offers a broa d ra nge
of promotional products s uch a s cus tomized calendars , fridge magnets , golf ba lls and mugs upon which companies can print their logos and
other information on. E a ch product is a vaila ble in a ra nge of s tanda rd s izes , a nd all orders are ava ilable for home or office delivery, or pick
up at any of W almart's 312 s tores acros s C a na da. W ith more than 100 new des ign s ets , the W a lmart P hoto C entre ca n offer print a nd
bra nding s olutions for a broa d ra nge of markets from Hea lth C a re to B ath a nd B eauty to R ea l E s ta te.
a nd a ls o the development of a s pecia lized ba s eba ll photogra phy webs ite.
 Page 9

VALUATION
Online Gaming companies lead market-cap charts: Thirteen 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 28 under
US$10 million. Online gaming companies dominate the top of the list, led by Tencent Holdings with a market cap over
US$20 billion.

Marke t C ap (US D m)
Tenc ent Holdings L td.
Netea s e. c om Inc .
S ha nda Intera c tiv e E nterta inment
IA C/InterA c tiv eCorp. 2606. 3
Cha ngy ou. c om L imited 2491. 0
S ohu. c om Inc . 2483. 3
Modern Times G roup Mtg A B 2019. 9
Open T ex t Corp. 1938. 6
G ia nt Intera c tiv e G roup, Inc . 1750. 3
Perf ec t W orld Co. , L td. 1702. 3
G r ee, Inc . 1604. 3
Chines e G a mer Interna tiona l 1286. 1
Mix i, Inc .
V a lueClic k Inc . 988. 01114. 9
K ings of t Co. L td. 969. 5
United Online Inc . 680. 3
NEOW IZ G a mes Corpora tion 539. 1
NetDra gon W ebS of t, Inc . 410. 6
S hutterf ly , Inc . 355. 2
S K Communic a tions Co. , L td. 321. 3
G a ma nia Digita l Enterta inment Co. , 310. 6
G iga Media L td. 278. 6
G ungHo Online Enter ta inment, Inc . 254. 3
Openw a v e S y s tems Inc . 244. 1
CDC Corp. 233. 4
The9 L imited 224. 5
X ING A G 213. 6
A c toz S of t Co. , L td. 188. 6
DA DA S pA 137. 8
G a meOn Co L td. 108. 3
Tr ee. Com, Inc . 107. 8
OA O R B C Inf or ma tion S y s tems 104. 0
Y eda ngOnline Corp. 100. 1
NeuL ion Inc orpora ted 93. 8
Cy berplex Inc . 90. 7
My ria d G roup A G 90. 1
Ha nbitS of t, Inc . 81. 8
K A B Dis tribution Inc . 79. 7
T heS tr eet. c om, Inc . 60. 9
Digita lTow n, Inc . 54. 2
G eoS entric Oy j 51. 1
S pa rk Netw orks , Inc . 49. 8
PNI Digita l Media Inc . 46. 4
E olith Co. L td. 46. 0
G r a v ity Co. , L td 44. 2
Ngi G roup Inc . 42. 7
Fluid Mus ic Ca na da , Inc . 42. 2
W ebz en Inc . 42. 0
Fr ogs ter Intera c tiv e Pic tur es A G 40. 8
S oc ia lw is e, Inc . 34. 7
A Q Intera c tiv e, Inc . 31. 6
DX N Holdings B hd 27. 7
Northga te Tec hnologies L imited 26. 0
Y nk K orea Inc . 25. 4
NeX plore Corpora tion 25. 1
W iz z a rd S of tw a re Corpora tion 22. 9
B roa dW ebA s ia Inc . 19. 5
L ookS ma rt, L td. 19. 1
Dolphin Digita l Media , Inc . 17. 1
A c c eleriz e New Media , Inc . 15. 8
B ey ond Commer c e, Inc . 15. 7
J umbuc k Enterta inment Pty L td. 15. 2
L ingo Media Corpora tion 13. 5
Quepa s a Corp. 12. 1
UOMO Media , Inc 9. 4
IA S Energy , Inc . 7. 7
W orlds . c om Inc . 7. 3
S pec tr umDNA , Inc . 7. 3
V OIS , Inc . 5. 0
S NA P Intera c tiv e, Inc . 4. 9
B right Things plc 4. 8
is eemedia Inc . 4. 6
MOK O. mobi L imited 4. 2
Ma gnitude Inf orma tion S y s tems Inc . 4. 1
Ex tens ions , Inc . 3. 6
B eta w a v e Corpora tion 3. 4
CornerW orld Corpora tion 3. 2
W ooz y F ly , Inc . 2. 6
Digita lPos t Intera c tiv e, Inc . 2. 6
B igs tring Corp. 2. 2
Unis erv e Communic a tions Corp. 2. 2
W y nds torm Corpora tion 1. 8
L iv eW orld Inc . 1. 4
CL ICK ER Inc . 0. 9
A s s oc ia ted Media Holdings Inc . 0. 9
The Pa rent Compa ny 0. 7
Z ipL oc a l Inc . 0. 4
China G a tew a y Corpora tion 0. 3
Tota l S port Online A S 0. 1
S oc ia l Media V enur es , Inc . 0. 0
S NM G loba l Holdings 0. 0
Dibz Interna tiona l, 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 6.1x: The overall average TEV/Revenue (LTM) multiple for our group is 6.1x (versus 5.3x
last week) (Figure 9). Two companies trade at more than 40x revenue – Bigstring Corp. (OTCBB:BSGC) at 49.9x, closely
followed by Gree (TSE:3632) at 49.0x. The median is only 2.3x. Note that we exclude multiples greater than 50x. Twenty-
nine companies have multiples under 1.5x.
 Page 10

T E V/L T M R ev enue (x)

60. 0

49.9
49.0
50. 0

41.2
40. 0

30. 0 26.2
23.3
21.6
19.2
20. 0 17.6
15.4
13.3
11.9
10.4
10. 0 ge, 6. 1
A v era 6.6 7.3 7.8 7.8
5.1 5.8
3.6 4.3 4.6 4.6 4.6 4.6
1.3 1.5 1.5 1.7 1.7 2.0 2.12.3 2.3 2.4 2.5 2.6 2.6 2.7 2.9 3.0 3.2 3.2 3.2
0.2 0.2 0.2 0.4 0.5 0.5 0.5 0.6 0.6 0.6 0.7 0.7 0.8 0.9 1.0 1.1 1.1 1.1 1.2 1.2 1.2
0. 0

NEOWIZ Games Corporation

MOKO.mobi Limited

UOMO Media, Inc

J umbuck Entertainment Pty Ltd.

GungHo Online Entertainment, Inc.

Gamania Digital Entertainment Co., Ltd.
PNI Digital Media Inc.

Chines e Gamer International

Unis erve Communications Corp.
Northgate T echnologies Limited

DXN Holdings Bhd

Changyou.com Limited
T he Parent Company

Modern Times Group Mtg AB

T ree.Com, Inc.

GameOn Co Ltd.

CDC Corp.

SK Communications Co., Ltd.

Beyond Commerce, Inc.

DigitalPos t Interactive, Inc.

Fluid Mus ic Canada, Inc.

Dolphin Digital Media, Inc.

NeuLion Incorporated
CornerWorld Corporation

Lingo Media Corporation

NeXplore Corporation
GeoSentric Oyj
SNM Global Holdings
SNAP Interactive, Inc.

United Online Inc.

Open Text Corp.

XING AG

Frogs ter Interactive Pictures AG

IAC/InterActiveCorp.

Spark Networks , Inc.

GigaMedia Ltd.

Cyberplex Inc.

ValueClick Inc.

is eemedia Inc.

NetDragon WebSoft, Inc.

Eolith Co. Ltd.

Sohu.com Inc.

Mixi, Inc.

As s ociated Media Holdings Inc.

Tencent Holdings Ltd.

Gree, Inc.
Myriad Group AG

Bright Things plc

Perfect World Co., Ltd.

ZipLocal Inc.

Openwave S ys tems Inc.

KAB Dis tribution Inc.

HanbitS oft, Inc.

YedangOnline Corp.

Ynk Korea Inc.

Social Media Venures , Inc.

Bigs tring Corp.

T otal Sport Online AS
DADA S pA

Shutterfly, Inc.

Accelerize New Media, Inc.

Kings oft Co. Ltd.

Wizzard Software Corporation
Actoz Soft Co., Ltd.

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 (19), trading at an average multiple of 11.9x (versus. 12.7x last week). On a geographic basis, the
United States has the most companies (39), trading at an average of 4.8x revenue (versus 5.8x last week) (Figure 11).
Ten of the companies are Canadian (average 4.8x 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 16.0
14.0 12.2 14.0
12.0 12.0 12.0
11.9 9.9
(x)

(x)

10.0 11.59.5 10.0 8.3

8.0 8.0 7.8 7.5
7.8 7.5 7.5 7.3
6.0 4.64.6 3.4 6.0 4.8
4.0 2.6 2.5 2.1 2.1 1.7 1.5 4.6
2.1 4.0
2.0 0.8 0.5 2.5 2.1 1.7 1.5
2.0 0.8 0.6
0.0 0.5 0.2 0.0 0.5 0.2 0.0
0.0
OTCNO
OTCPK
OTCBB
GTSM

NasdaqGM
SEHK

TSE

HLSE

KOSE
NasdaqGS
OSE

RTS
OM
CM
XTRA

TSX
AMEX

KLSE

BSE
AIM

TSXV

SWX

ASX

Germany
United

Japan

Finland

China
United
Canada

Hong Kong

Malaysia
India
Russia
Italy
South
Taiwan

Australia
Norway
Switzerland

Sweden

# Companies 1 3 2 19 5 11 1 2 1 4 4 2 1 6 14 1 2 1 1 1 5 1 1 1 6 3 1 2 10 39 10 1 1 8 2 1 1 1 1 1 1
# Companies

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

Source. Capital IQ

TEV/EBITDA (LTM) averages 9.3x: The average multiple for the 35 companies with positive EBITDA (and multiples under
100x) is 9.3x LTM EBITDA (vs. 9.2x last week), led by Chinese Gamer International (3083-GTSM) 38.6x multiple (Figure
12). Thirteen of the companies have EBITDA multiples under 7x. The median multiple is 8.8x (vs. 8.0x last week).
 Page 11

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

45. 0

40. 0 38. 6

35. 0

30. 0
26. 7

25. 0 22. 0

20. 0 18. 1
16. 9 17. 1

15. 0 13. 7
11. 4 11. 5
A v era ge, 9. 3 9. 3 9. 6 9. 6 9. 7 9. 9 10. 1 10. 2 10. 6
10. 0 7. 9 8. 0 8. 1 8. 4
5. 4 5. 4
3. 7 3. 8 4. 3
5. 0 1. 9 2. 5
0. 0 0. 1 0. 2 0. 2 0. 4 0. 5 0. 7
0. 0

NE O WIZ G a mes C orporation

C LIC K E R Inc .

J umbuck E nterta inment P ty Ltd.

G ungHo O nline E nterta inment, Inc .

G a mania Digital E nterta inment C o., Ltd.

C hines e G amer Interna tional

#NU M!

O AO R B C Informa tion 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 ommunica tions C o. , L td.

Modern T imes G roup Mtg AB
Ngi G roup Inc .

S handa Intera ctive E nterta inment L td.

S NAP Interac tive, Inc .

U nited O nline Inc .

O pen T ex t C orp.
AQ Intera ctive, Inc .

S pa rk 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 .
XING AG
P erfect World C o., Ltd.

Y edangO nline C orp.

K AB Dis tribution Inc.

S hutterfly, Inc.

K ings oft C o. L td.

DADA S pA

Ac toz 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 (19), trading at an average multiple of 1.9x (vs. 2.0x last week). On a
geographic basis, the United States has the most companies (39), trading at an average of 7.0x EBITDA (Figure 14). Ten
of the companies are Canadian (average 10.3x EBITDA).

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

30.0 26.2 30.0
26.2
25.0 25.0
20.0 20.0
13.5
(x)

15.0 13.513.1
(x)

15.0
11.5 10.3
10.0 10.5 9.7 9.6 8.8 9.7 9.6 9.2
6.3 5.4 10.0 8.0 7.3 7.0
4.3 3.8
5.0 1.9 1.9 0.2 5.4
0.0 0.0 5.0 3.8
0.0 1.9 0.2
0.0 0.0
OTCBB
GTSM

KOSE

SEHK

OSE

NasdaqGS

TSE

RTS
OM

CM
TSX

XTRA

AMEX

KLSE

BSE
SWX
ASX

Germany
Canada

China

Hong Kong

Japan
United

Malaysia

Russia
Italy
South
Korea

States
Taiwan

Australia
Sweden

# Companies 2 6 3 1 4 1 2 14 5 1 2 1 19 2 1 1 1 Switzerland
# Companies 3 8 10 1 2 10 1 6 39 1 1 2 1 1

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

Source. Capital IQ
 Page 12

P/E (LTM) averages 11.0x: The average multiple for the 30 companies with positive earnings (and multiples under 100x)
is 11.0x LTM EPS (same as last week), led Tencent Holdings Ltd (SEHK-700) 70.3x multiple (Figure 15). Eleven of the
companies have P/E multiples under 10x. The median is just 14.3x.

P /E L T M (x)

80. 0
70. 3
70. 0

60. 0 54. 8
49. 6
47. 8
50. 0

40. 0
32. 9
30. 2
28. 1 29. 3
30. 0
21. 8 22. 2 23. 0
19. 9
20. 0 17. 0
14. 7 15. 3
12. 5 14. 0
A v era ge, 11. 0 10. 6 11. 0
7. 4 8. 7
10. 0 4. 9 6. 0 6. 1
1. 9 2. 5 2. 9 3. 0 3. 2

0. 0

NEOWIZ G ames Corporation

J umbuck E ntertainment Pty Ltd.

G amania Digital E ntertainment Co., Ltd.

Chines e Gamer International

DXN Holdings Bhd

Changyou.com Limited
Modern Times Group Mtg AB

G ameOn Co Ltd.
Giant Interactive Group, Inc.

T he9 Limited

Neteas e.com Inc.

Shanda Interactive E ntertainment Ltd.

SNAP Interactive, Inc.

Open Text Corp.

XING AG
GigaMedia Ltd.

IAC/InterActiveCorp.

Tencent Holdings Ltd.

Cyberplex Inc.

S ohu.com Inc.

NetDragon WebSoft, Inc.

S park Networks , Inc.

Worlds .com Inc.

Mixi, Inc.
Perfect World Co., Ltd.

YedangOnline Corp.

DADA SpA
Kings oft Co. Ltd.

Actoz S oft Co., 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 (19), trading at an average multiple of 27.6x. On a geographic basis, the United States has
the most companies (39), trading at an average of 23.2x earnings (Figure 17). Ten of the companies are Canadian
(average 19.5x EPS).

Average P/E - By Exchange

45.0 41.3
Average P/E - By Country
40.0
40.0 33.6
35.0
35.0
35.6 33.6 30.0
30.0 31.2
27.6 25.0
25.0 23.0 22.7 23.2 23.0
(x)

(x)

20.0 19.9 20.0 19.9 19.5

15.0 15.3 11.8 15.0 17.0 15.1
10.0 8.7 6.1
6.0 4.9 10.0 6.1 6.0
5.0 1.9 4.9
5.0
0.0 0.0
0.0 0.0
OTCBB
GTSM

NasdaqGM
SEHK

TSE

KOSE

NasdaqGS
CM

OM
XTRA

AMEX

TSX

KLSE

NYSE
ASX

Germany
Japan

United

Canada

China

Malaysia
Italy

South
Korea
States
Taiwan

Australia

Sweden

Switzerland

# Companies 2 3 5 19 1 6 2 2 14 4 2 1 1 1 5
# Companies 6 3 39 1 2 10 8 10 2 1 1 1

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

Source. Capital IQ
 Page 13

UPCOMING EVENTS

E arnings C alendar
C ompany Date & Time Quarter C onf C all Details
C hangyou. com L imited (Nas daqG S : C Y O U) Monday, J uly 27, 2009 7: 00 AM (E DT ) Q 2 2009 1-866-202-3048
S ohu. com Inc. (Nas daqG S : S O HU) Monday, J uly 27, 2009 8: 30 AM (E DT ) Q 2 2009 1-866-730-5764
IAC /InterActiveC orp. (Nas daqG S : IAC I) W ednes day, J uly 29, 2009 11: 00 AM (E DT ) Q 2 2009 NA
S hutterfly, Inc. (Nas daqG S : S F L Y ) W ednes day, J uly 29, 2009 5: 00 P M (E DT ) Q 2 2009 913-312-0641
T heS treet. com, Inc. (Nas daqG M: T S C M) W ednes day, J uly 29, 2009 4: 30 P M (E DT ) Q 2 2009 NA
O penwave S ys tems Inc. (Nas daqG S : O P W V ) T hurs day, J uly 30, 2009 2: 00 P M (P DT ) Q 4 2009 877-941-8416
T ree. C om, Inc. (Nas daqG M: T R E E ) T hurs day, J uly 30, 2009 11: 00 AM (E DT ) Q 2 2009 877-723-9523
V alueC lick Inc. (Nas daqG S : V C L K ) T ues day, Augus t 04, 2009 4: 30 P M (E DT ) Q 2 2009 818-575-4677
O pen T ext C orp. (Nas daqG S : O T E X) T hurs day, Augus t 20, 2009 5: 00 P M (E DT ) Q 4 2009 416-644-3415

Figure 18. Earnings Calendar

Source. Company reports
 Page 14

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 1 5.8 0.5 7 3.6 % 4 2.5 % 16 .3% 62 .9% -12 .3% -18. 6%
Actoz S of t C o., L td. KR W A 052 790 KO SE 18 8.6 27 ,25 0 5.6 % 0.2% 86 .0% 17 3.9% 2 44. 5% -24. 3%
AQ Inte ractive , Inc. JPY 3 838 TSE 3 1.6 55 ,00 0 -6.0 % -28. 5% 17 .0% 94 .3% -64 .1% -65. 4%
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 2 .2 0.0 4 5.0 % 4 0.0 % 20 6.6% 14 0.0% -58 .0% -61. 8%
B e tawave Corpora tion US D B W AV OT C B B 3 .4 0.1 2 43.8 % 1 5.0 % -1 7.9% -4 7.7 % -50 .0% -66. 3%
B e yond Commerce, Inc. US D B Y OC OT C B B 1 5.7 0.3 5 -12. 8% -58. 5% -7 7.5% -6 3.3 % -89 .3% -89. 4%
B right T hings plc GBP A IM:B G T AI M 4 .8 0.0 2 15.4 % 0.0% -1 4.3% 20 .0% 0.0 % -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 23 3.4 2.2 0 54.9 % 4 5.7 % 91 .3% 14 4.4% -14 .7% -30. 6%
C ha ngyou. com Limite d US D C Y OU N as da qG S 2,4 91. 0 4 5.2 9 20.4 % 1 7.5 % 82 .9% NM NM -3.3 %
C hina G ate wa y C orpora tion US D CGWY OT C P K 0 .3 0.0 2 -25. 0% 6 50.0 % 65 0.0% 65 0.0% -50 .0% -57. 1%
C hine s e G amer International TWD G TS M:3 083 GT S M 1,2 86. 1 50 1.0 0 16.5 % 5 7.8 % 17 4.5% 45 4.8% 5 23. 9% -3.5 %
C LIC K E R Inc. US D C L KZ OT C B B 0 .9 0.0 1 -29. 4% 3 28.6 % 14 0.0% -6 0.0 % -98 .6% -98. 6%
C ornerW orld C orporation US D CWR L OT C B B 3 .2 0.0 5 -16. 7% -16. 7% -6 4.3% -8 0.0 % -91 .8% -93. 7%
C yberplex Inc. C AD T S X:CX TSX 9 0.7 1.5 5 -2.5 % -11. 9% 29 .2% 34 2.9% 1 71. 9% -22. 1%
D ADA S pA E UR C M :DA CM 13 7.8 5.9 8 -2.8 % -1.8 % 21 .2% -8.0% -45 .0% -52. 0%
D XN Holdings B hd MY R DXN KL SE 2 7.7 0.4 3 21.4 % 1 1.8 % 41 .7% 19 .7% 10.4 % -9.6 %
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 2 .6 0.0 4 -12. 5% 0.0% 75 .0% 45 .8% -61 .1% -70. 6%
D igitalT own, Inc. US D DG T W OT C B B 5 4.2 2.0 0 -2.4 % -20. 0% -2 0.0% -2 5.9 % -33 .3% -67. 2%
D olphin Digital Me dia, Inc. US D DP DM OT C B B 1 7.1 0.3 3 -26. 7% -34. 0% -3 4.0% -5 2.9 % NM -70. 8%
E olith C o. L td. KR W A 041 060 KO SE 4 6.0 79 0.0 0 4.6 % -10. 2% 17 .9% 51 .9% -8. 1% -31. 9%
E xte ns ions , Inc. US D E XT I OT C P K 3 .6 0.0 8 -60. 0% -46. 7% -4 6.7% -8 4.6 % NM -92. 1%
F luid M us ic Ca nada, Inc. C AD T S X:F MN TSX 4 2.2 0.8 9 36.9 % 4 1.3 % 15 4.3% 18 2.5% -49 .1% -55. 3%
F rogs te r Interactive P icture s AG E UR FR G XT R A 4 0.8 1 2.2 0 6.1 % 5 4.8 % 44 .4% 16 4.6% 1 34. 6% -4.3 %
G a ma nia Digital E ntertainment C o., L td. TWD 6 180 GT S M 31 0.6 6 7.0 0 21.4 % 3 2.7 % 11 8.2% 21 0.9% 1 45. 9% 0.0 %
G a me On C o L td. JPY 3 812 TSE 10 8.3 106 ,00 0 -4.1 % -2.2 % 15 .0% -6.2% -23 .7% -35. 2%
G e oS e ntric O yj E UR G E O1V H LS E 5 1.1 0.0 4 0.0 % 0.0% 0 .0% 0 .0% -33 .3% -42. 9%
G iant Intera ctive G roup, Inc. US D GA NYS E 1,7 50. 3 7.7 5 2.6 % -7.4 % -3 .0% 36 .0% -24 .1% -30. 6%
G iga Media Ltd. US D G IG M N as da qG S 27 8.6 5.1 1 -5.7 % -7.1 % -2 4.3% -2 2.1 % -58 .7% -62. 1%
G ravity C o., L td US D G RV Y N as da qG M 4 4.2 1.5 9 9.7 % 4 3.2 % 63 .9% 17 4.1% 63.9 % -20. 1%
G ree, Inc. JPY T S E :36 32 TSE 1,6 04. 3 6 ,78 0 -1.7 % 1 2.3 % 24 .4% 22 .8% NM -12. 1%
G ungH o O nline E ntertainment, Inc. JPY 3 765 OS E 25 4.3 210 ,00 0 -3.0 % -14. 2% 71 .7% 10 6.9% 32.0 % -25. 0%
H anbitS oft, Inc. KR W A 047 080 KO SE 8 1.8 4 ,65 0 7.5 % 0.9% 0 .6% 52 .0% 18.2 % -30. 0%
IAC /InterActiveC orp. US D I ACI N as da qG S 2,6 06. 3 1 7.2 7 7.2 % 5.0% 6 .0% 15 .1% -51 .4% -65. 8%
IAS E nergy, Inc. US D I AS C .A OT C B B 7 .7 0.1 1 -31. 3% -50. 0% -5 4.2% 42 3.8% -45 .0% -68. 6%
is ee media Inc. C AD IEE T S XV 4 .6 0.1 0 0.0 % 3 3.3 % 0 .0% 25 .0% -41 .2% -60. 0%
J umbuck E ntertainment P ty Ltd. AU D A S X:J M B AS X 1 5.2 0.3 8 0.0 % -9.5 % -1 7.4% -2 0.8 % -33 .3% -38. 7%
K A B Dis tribution Inc. C AD T S X:K AB TSX 7 9.7 1 0.0 % 1.6% 8 .6% 77 .5% -18 .2% -30. 8%
K ings oft Co. Ltd. HKD 3 888 S E HK 96 9.5 7 26.5 % 2 8.6 % 82 .6% 15 5.4% 1 04. 1% -1.6 %
Lingo Media Corporation C AD T S XV :LM T S XV 1 3.5 1.2 0 20.0 % 1 4.3 % 20 .0% 21 .2% -33 .0% -37. 5%
Live World Inc. US D L VW D OT C P K 1 .4 0.0 5 -18. 2% -55. 0% -5 5.0% 50 .0% -77 .5% -85. 9%
LookS mart, Ltd. US D L OOK N as da qG M 1 9.1 1.1 2 -1.8 % -15. 2% -1 0.4% -1 3.2 % -63 .2% -66. 8%
M agnitude Information S ys tems Inc. US D M AG Y OT C B B 4 .1 0.0 1 -3.2 % -37. 9% -4 0.0% -6 6.7 % -52 .9% -70. 0%
M ixi, Inc. JPY 2 121 TSE 1,1 14. 9 68 6,00 0.0 0 10.3 % 4 1.7 % 82 .0% 21 .8% 7.9 % -25. 5%
M ode rn Times G roup Mtg AB SE K MT G B OM 2,0 19. 9 23 8.0 0 7.7 % 1 5.5 % 45 .1% 76 .6% -34 .2% -39. 1%
M OK O.mobi L imited AU D MKB AS X 4 .2 0.0 6 -14. 3% -20. 0% -2 9.4% 20 .0% 46.3 % -40. 0%
M yriad G roup AG C HF MYR N SWX 9 0.1 4.5 2 -3.8 % -9.6 % 8 .9% -2 4.7 % -54 .8% -55. 7%
N E OW IZ G ames C orpora tion KR W A 095 660 KO SE 53 9.1 3 1,90 0.0 0 2.9 % -7.5 % 8 .3% 22 3.9% 1 57. 8% -24. 0%
N etDragon W ebS oft, Inc. HKD 7 77 S E HK 41 0.6 6.0 2 5.8 % 2 2.1 % 36 .8% 11 8.1% -35 .5% -39. 7%
N ete as e.com I nc. US D NT E S N as da qG S 5,2 63. 0 4 0.9 8 17.1 % 1 5.9 % 35 .7% 13 2.8% 79.2 % 2.2 %
N euLion Incorporate d C AD T S X:NL N TSX 9 3.8 0.9 1 30.0 % 3 0.0 % 75 .0% 20 3.3% NM -16. 5%
N eXplore Corpora tion US D N XP C OT C P K 2 5.1 0.4 5 -22. 4% -35. 7% -3 5.7% -4 7.1 % -30 .8% -69. 0%
N gi G roup Inc. JPY 2 497 TSE 4 2.7 3 2,65 0.0 0 -1.1 % -15. 9% 18 .8% -3 6.4 % -58 .0% -74. 4%
N orthgate Te chnologies L imited IN R 5 900 57 BS E 2 6.0 3 6.0 0 23.9 % -6.1 % -1 8.1% -2 2.7 % -87 .9% -88. 6%
Open T e xt Corp. US D O TE X N as da qG S 1,9 38. 6 3 6.8 4 2.3 % 3.6% 7 .6% 17 .6% 25.8 % -5.8 %
Openwave S ys tems Inc. US D O PW V N as da qG S 24 4.1 2.9 3 27.9 % 2 3.6 % 14 2.1% 37 2.6% 1 18. 7% -2.3 %
P e rfect W orld C o., Ltd. US D P W RD N as da qG S 1,7 02. 3 3 5.0 0 21.6 % 1 9.9 % 11 9.0% 13 3.5% 31.3 % 3.2 %
P N I D igital Media Inc. C AD T S XV :P N T S XV 4 6.4 1.5 0 3.4 % NM -3 .2% -7.4% -53 .1% -58. 6%
Quepa s a C orp. US D Q PSA OT C B B 1 2.1 0.9 5 -5.0 % 5 5.7 % 6 .7% -5 1.3 % -53 .9% -72. 5%
OA O R B C Information S ys tems US D R BC I R TS 10 4.0 0.7 5 -18. 7% -44. 4% 50 .0% 31 .6% -90 .5% -90. 9%
S handa Interactive E ntertainme nt L td. US D S NDA N as da qG S 4,0 18. 8 6 0.1 9 16.2 % 9.3% 27 .4% 11 5.6% 1 44. 8% -7.4 %
S hutte rf ly, Inc. US D S F LY N as da qG S 35 5.2 1 4.1 1 17.6 % 2.2% 30 .0% 12 1.9% 23.8 % -7.5 %
S K C ommunications Co., Ltd. KR W A 066 270 KO SE 32 1.3 9,55 0.0 0 5.5 % -18. 7% -3 .5% 36 .4% -33 .2% -38. 0%
S N AP Inte ra ctive , Inc. US D S T VI OT C B B 4 .9 0 0.0 % -35. 7% -3 5.7% -5 5.9 % -25 .0% -58. 3%
S N M G lobal H oldings US D S NM N OT C P K 0 .0 0.0 0 -77. 1% 6.7% 70 0.0% 30 0.0% -99 .9% -99. 9%
S ocia l Media V e nures , Inc. US D S MVI OT C P K 0 .0 0.3 2 28.0 % 31 00. 0% 11 3.3% -6 9.2 % 28.0 % -93. 6%
S ocia lwis e, Inc. US D S CL W OT C B B 3 4.7 0.8 0 0.0 % 1 4.3 % 12 8.6% 2 .6% -70 .4% -70. 9%
S ohu. com Inc. US D S OH U N as da qG S 2,4 83. 3 6 4.9 0 10.1 % 0.5% 39 .2% 61 .2% -21 .6% -26. 2%
S park N etworks , Inc. US D L OV AM E X 4 9.8 2 0.8 % -0.8 % 8 .0% -1.2% -40 .8% -45. 7%
S pectrumDN A, Inc. US D S P XA OT C B B 7 .3 0 -25. 0% -34. 8% 0 .0% -2 1.1 % NM -75. 0%
T encent Holdings L td. HKD 7 00 S E HK 24, 804 .2 10 7 22.3 % 1 7.7 % 66 .4% 13 0.5% 59.7 % -0.4 %
T he P arent C ompany US D K IDS .Q OT C P K 0 .7 0.0 3 40.0 % 1 2.0 % 13 3.3% -3 0.0 % -98 .4% -98. 9%
T he 9 L imited US D NC TY N as da qG S 22 4.5 8.8 0 1.7 % -12. 2% -6 .5% -4 5.1 % -62 .1% -69. 1%
T he S treet.com, Inc. US D T S CM N as da qG M 6 0.9 1.9 9 -0.3 % -10. 0% -1 3.1% -3 5.0 % -68 .2% -72. 9%
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% 0 .0% -2 5.0 % -40 .0% -40. 0%
T ree.C om, Inc. US D TR EE N as da qG M 10 7.8 9.9 8 4.1 % 1 1.3 % 66 .6% 14 4.0% NM -23. 6%
U nis erve C ommunications Corp. C AD T S XV :U S S T S XV 2 .2 0.1 0 42.9 % 4 2.9 % 15 0.0% 81 .8% -44 .4% -60. 0%
U nited Online Inc. US D UNTD N as da qG S 68 0.3 8.1 4 16.3 % 2 9.4 % 69 .2% 33 .4% -26 .5% -33. 6%
U OMO Media , Inc US D U OMO OT C B B 9 .4 0.1 1 4.8 % -35. 3% 37 .5% 46 .7% -71 .8% -89. 6%
V a lueC lick Inc. US D V CL K N as da qG S 98 8.0 1 1.3 6 9.5 % 0.9% 15 .1% 90 .3% 2.7 % -18. 9%
V O IS , Inc. US D V OIS OT C B B 5 .0 0.0 1 -40. 0% 7 1.4 % 10 0.0% 50 .0% -85 .0% -85. 9%
W ebze n Inc. US D W ZE N N as da qG M 4 2.0 3.5 4 7.9 % -1.7 % 32 .1% 15 2.8% 29.7 % -24. 4%
W iz za rd S of twa re Corpora tion US D W ZE AM E X 2 2.9 0.4 8 -5.9 % -26. 2% -1 8.6% -3 5.1 % -71 .9% -72. 7%
W orlds .com Inc. US D W DDD OT C B B 7 .3 0.1 4 -6.7 % 5 5.6 % -1 7.6% -6.7% -41 .7% -63. 2%
W oozyF ly, Inc. US D W ZY F OT C B B 2 .6 0.1 5 0.0 % NM 0 .0% 0 .0% NM -96. 3%
W ynds torm C orporation US D W YND OT C P K 1 .8 0.1 0 1 50. 0% -80. 4% -4 1.2% -1 6.7 % -66 .7% -83. 3%
XIN G AG E UR O 1B C XT R A 21 3.6 2 8.5 0 -5.4 % -10. 9% 6 .3% 0 .0% -6. 6% -20. 8%
Y e dangOnline Corp. KR W A 052 770 KO SE 10 0.1 7 ,94 0 0.5 % -8.5 % -1 7.6% 16 .8% -17 .9% -36. 0%
Y nk K orea Inc. KR W A 023 770 KO SE 2 5.4 5 ,92 0 -4.5 % -1.3 % 30 .7% 48 .0% -42 .8% -52. 3%
ZipLocal Inc. C AD T S XV :ZIP T S XV 0 .4 0.0 1 0.0 % 0.0% 0 .0% -7 5.0 % -95 .5% -95. 5%
H igh 1 233 .3% 31 00. 0% 132 8.6 % 65 0.0% 5 23. 9% 3.2 %
Low -90. 0% -90. 0% -9 0.0% -9 8.0 % -99 .9% -99. 9%
A vera ge 679.9 16.6% 60.9% 56.5% 67.0% -9. 3% -48.6%
M edian 2.0 % 0.4% 16 .7% 22 .8% -33 .3% -48. 9%

Figure 19. Price Performance

Source. Capital IQ
 Page 15

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 15. 8 5.1 x - - - - - -
Actoz S of t C o., L td. G aming S outh K ore a K OS E A 052 790 1 88. 6 1.7 x - 7.9 x - 28 .1x - 3 .2x
AQ Inte ractive , Inc. G aming J a pan TSE 3 838 31. 6 0.0 x - 0.5 x - - - 0 .5x
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 2. 2 49.9 x - - - - - -
B e tawave Corpora tion Me dia U nite d S tates OT C B B B WA V 3. 4 - - - - - - 0 .5x
B e yond Commerce, Inc. S ocia l Ne tworking U nite d S tates OT C B B BYO C 15. 7 2.9 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 2 33. 4 0.6 x 0.7x 8.0 x 9.8x - 7 1.0 x -
C ha ngyou. com Limite d G aming C hina N as da qG S CY OU 2,4 91. 0 10.4 x 7.8x 17.1 x 1 3.3 x 17 .0x 1 6.3 x 1 5.5x
C hina G ate wa y C orpora tion Mobile U nite d S tates OT C P K CG W Y 0. 3 0.0 x - - - - - -
C hine s e G amer International G aming T a iwan GTS M G T S M:308 3 1,2 86. 1 21.6 x - 38.6 x - 49 .6x - 1 8.6x
C LIC K E R Inc. D irect Marketing U nite d S tates OT C B B C LK Z 0. 9 0.0 x - 0.1 x - - - -
C ornerW orld C orporation C ontent U nite d S tates OT C B B CWR L 3. 2 3.6 x - - - - - -
C yberplex Inc. Advertis ing C anada TSX T S X:C X 90. 7 1.2 x 0.9x 11.4 x 7.5x 8. 7x 1 0.1 x 8 .6x
D AD A S pA S ocia l Ne tworking Italy CM CM:DA 1 37. 8 0.8 x - 5.4 x - 23 .0x - -
D XN Holdings B hd S ocia l Ne tworking Malays ia KL SE D XN 27. 7 0.5 x - 3.8 x - 4. 9x - 0 .6x
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 2. 6 5.8 x - - - - - -
D igitalT own, Inc. S ocia l Ne tworking U nite d S tates OT C B B D G TW 54. 2 - - - - - - -
D olphin D igital Me dia, Inc. S ocia l Ne tworking U nite d S tates OT C B B DP DM 17. 1 23.3 x - - - - - -
E olith C o. L td. G aming S outh K ore a K OS E A 041 060 46. 0 3.2 x - - - - - 4 .3x
E xte ns ions , Inc. C ontent U nite d S tates OT C P K E XT I 3. 6 - - - - - - -
F luid Mus ic Ca nada, Inc. Me dia U nite d S tates TSX T S X:F MN 42. 2 6.6 x 4.4x - - - - 4 .1x
F rogs te r Interactive P icture s AG G aming G ermany XT R A F RG 40. 8 11.9 x - - - - - 6 .0x
G a ma nia D igital E ntertainment C o., L td. G aming T a iwan GTS M 6 180 3 10. 6 2.3 x - 13.7 x - 32 .9x - 4 .0x
G a me On C o L td. G aming J a pan TSE 3 812 1 08. 3 0.6 x - 2.5 x - 12 .5x - 1 .4x
G e oS e ntric O yj Mobile F inland H LS E G E O1V 51. 1 7.8 x - - - - - 8 .6x
G iant Intera ctive G roup, Inc. G aming C hina NYS E GA 1,7 50. 3 - - - - 1. 9x 1 2.9 x 0 .3x
G iga Media Ltd. G aming T a iwan N as da qG S G IG M 2 78. 6 1.1 x 1.1x - 5.2x 11 .0x 1 0.3 x 2 .4x
G ravity C o., L td G aming S outh K ore a N as da qG M GR VY 44. 2 - - - - 0. 0x - 0 .0x
G ree, Inc. S ocia l Ne tworking J a pan TSE T S E :3 632 1,6 04. 3 49.0 x - - - - - 1 9.7x
G ungH o O nline E ntertainment, Inc. Me dia J a pan OS E 3 765 2 54. 3 2.1 x - 11.5 x - - - 3 5.6x
H anbitS of t, Inc. G aming S outh K ore a K OS E A 047 080 81. 8 1.2 x - - - - - 2 .5x
IAC /InterActiveC orp. Me dia U nite d S tates N as da qG S IAC I 2,6 06. 3 0.5 x 0.5x 16.9 x 4.6x 22 .2x 3 3.7 x 1 .2x
IAS E nergy, Inc. V ide o C anada OT C B B IA S C .A 7. 7 - - - - - - -
is ee media Inc. C ontent C anada T S XV IE E 4. 6 2.4 x - - - - - 3 .9x
J umbuck E ntertainment P ty Ltd. S ocia l Ne tworking A us tralia AS X AS X:J MB 15. 2 0.7 x - 1.9 x - 6. 1x - 1 .5x
K A B D is tribution Inc. C ontent C anada TSX TS X:K AB 79. 7 1.1 x 1.1x 9.6 x 5.9x - - -
K ings oft Co. Ltd. G aming C hina S E HK 3 888 9 69. 5 7.3 x - 18.1 x - 21 .8x - 5 .3x
Lingo Media Corporation Le arning C anada T S XV TS XV :LM 13. 5 13.3 x - - - - - 1 4.0x
Live World Inc. S ocia l Ne tworking U nite d S tates OT C P K LV W D 1. 4 0.0 x - - - - - 0 .6x
LookS mart, Ltd. D irect Marketing U nite d S tates N as da qG M L OOK 19. 1 - - - - - - 0 .7x
Magnitude Information S ys tems Inc. S ocia l Ne tworking U nite d S tates OT C B B MAG Y 4. 1 - - - - - - -
Mixi, Inc. S ocia l Ne tworking J a pan TSE 2 121 1,1 14. 9 7.8 x - 22.0 x - 54 .8x - 8 .1x
Mode rn Times G roup Mtg AB Me dia S we den OM MT G B 2,0 19. 9 1.5 x - 9.7 x 1 1.7 x 6. 0x 1 2.8 x -
MOK O.mobi L imited S ocia l Ne tworking A us tralia AS X MK B 4. 2 2.6 x - - - - - 3 .1x
Myriad G roup AG Mobile S witz erland SWX MY R N 90. 1 2.5 x - - - - - 4 .0x
N E OW IZ G ames C orpora tion G aming S outh K ore a K OS E A 095 660 5 39. 1 2.7 x - 9.9 x - 29 .3x - 1 4.8x
N etD ragon W ebS oft, Inc. G aming C hina S E HK 777 4 10. 6 3.2 x - 8.1 x - 14 .7x - 2 .2x
N ete as e.com I nc. G aming C hina N as da qG S NT E S 5,2 63. 0 - - - - 3. 0x 1 8.1 x 0 .9x
N euLion Incorporate d V ide o C anada TSX T S X:N LN 93. 8 4.6 x - - - - - 5 .4x
N eXplore Corpora tion C ontent U nite d S tates OT C P K N XP C 25. 1 41.2 x - - - - - -
N gi G roup Inc. Me dia J a pan TSE 2 497 42. 7 0.0 x - 0.2 x - - - 0 .9x
N orthgate Te chnologies L imited D irect Marketing India BS E 59 005 7 26. 0 0.2 x - - - - - -
Open T e xt Corp. C ollaboration C anada N as da qG S O TE X 1,9 38. 6 2.6 x 2.4x 10.1 x - 30 .2x 1 3.9 x -
Openwave S ys tems Inc. Mobile U nite d S tates N as da qG S OP W V 2 44. 1 0.7 x 0.8x - 7.7x - 4 6.5 x 3 .5x
P e rf ect W orld C o., Ltd. G aming C hina N as da qG S PW R D 1,7 02. 3 0.4 x 2.1x 0.7 x 4.0x 2. 9x 1 3.4 x 1 .1x
P N I D igital Media Inc. D igital Imaging C anada T S XV T S XV :P N 46. 4 2.3 x 1.6x - 4.7x - - 1 8.8x
Quepa s a C orp. S ocia l Ne tworking U nite d S tates OT C B B QP S A 12. 1 - - - - - - -
OA O R B C Information S ys tems Me dia R us s ia R TS R B CI 1 04. 0 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 4,0 18. 8 0.2 x 0.9x 0.4 x 2.0x 3. 2x 1 6.8 x 1 .3x
S hutte rf ly, Inc. D igital Imaging U nite d S tates N as da qG S S FL Y 3 55. 2 1.3 x 1.3x 10.2 x 7.8x - - 2 .1x
S K C ommunications Co., Ltd. S e arch S outh K ore a K OS E A 066 270 3 21. 3 1.7 x - 26.7 x - - - -
S N AP Inte ra ctive , Inc. D ating U nite d S tates OT C B B S TVI 4. 9 1.0 x - 3.7 x - 7. 4x - 2 .9x
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 4.6 x - - - - - -
S ocia lwis e, Inc. S ocia l Ne tworking U nite d S tates OT C B B S CL W 34. 7 - - - - - - 4 5.1x
S ohu. com Inc. G aming C hina N as da qG S S OH U 2,4 83. 3 4.6 x 4.0x 10.6 x 9.1x 14 .0x - 6 .7x
S park N etworks , Inc. S ocia l Ne tworking U nite d S tates AME X L OV 49. 8 0.9 x - 4.3 x - 15 .3x - -
S pectrumDN A, Inc. Me dia U nite d S tates OT C B B S P XA 7. 3 - - - - - - 1 9.1x
T encent Holdings L td. P orta l C hina S E HK 700 24,8 04. 2 26.2 x - - - 70 .3x - 2 8.7x
T he P arent C ompany Me dia U nite d S tates OT C P K K ID S .Q 0. 7 0.2 x 0.2x - 1 3.1 x - - -
T he 9 L imited G aming C hina N as da qG S NC T Y 2 24. 5 - - - - 2. 5x 1 2.1 x 0 .1x
T he S treet.com, Inc. Me dia U nite d S tates N as da qG M TSCM 60. 9 - - - - - - 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 1 07. 8 0.5 x 0.4x - 5.2x - - 1 .4x
U nis erve C ommunications Corp. S ocia l Ne tworking C anada T S XV T S XV :U S S 2. 2 0.2 x - - - - - -
U nited Online Inc. Me dia U nite d S tates N as da qG S U N TD 6 80. 3 1.2 x 1.0x 5.4 x 4.0x - 1 0.8 x -
U OMO Media , Inc Me dia C anada OT C B B U OMO 9. 4 15.4 x - - - - - -
V a lueC lick Inc. Me dia U nite d S tates N as da qG S VC LK 9 88. 0 1.5 x 1.6x 8.4 x 6.5x - 1 8.1 x 8 .0x
V O IS , Inc. S ocia l Ne tworking U nite d S tates OT C B B VOIS 5. 0 - - - - - - 1 7.1x
W ebze n Inc. G aming S outh K ore a N as da qG M W ZE N 42. 0 - - - - - - 0 .0x
W iz za rd S of twa re Corpora tion P odcas ting U nite d S tates AME X W ZE 22. 9 4.3 x - - - - - -
W orlds .com Inc. C ontent U nite d S tates OT C B B W DD D 7. 3 - - - - 47 .8x - -
W oozyF ly, Inc. S ocia l Ne tworking U nite d S tates OT C B B W ZY F 2. 6 - - - - - - -
W ynds torm C orporation C ontent U nite d S tates OT C P K W YND 1. 8 - - - - - - -
XIN G AG S ocia l Ne tworking G ermany XT R A O 1B C 2 13. 6 3.0 x - 9.6 x - 19 .9x - 6 .7x
Y e dangOnline Corp. G aming S outh K ore a K OS E A 052 770 1 00. 1 2.0 x - 9.3 x - 10 .6x - 3 .7x
Y nk K orea Inc. G aming S outh K ore a K OS E A 023 770 25. 4 3.2 x - - - - - 1 .2x
ZipLocal Inc. D irectory C anada T S XV T S XV :ZIP 0. 4 0.6 x - - - - - -
H igh 24,8 04. 2 49.9 x 7.8x 38.6 x 1 3.3 x 70 .3x 7 1.0 x 4 5.1x
Low 0. 0 0.0 x 0.2x 0.1 x 2.0x 0. 0x 1 0.1 x 0 .0x
A vera ge 679. 9 6.1x 1.8x 9.3x 7.2x 19.1x 21.1x 7.1x
Median 43. 5 2.3 x 1.1x 8.8 x 6.5x 14 .3x 1 3.9 x 3 .6x

Figure 20. Valuation Comparison

Source. Capital IQ
 Page 16

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 39 C hina 44, 117.5 China 4,411. 8 U nited S ta tes 3, 796. 2 C hina 1,711. 2 C hina 48. 1%
C anada 10 U nited S tates 5, 422.9 S weden 2,019. 9 C hina 3, 684. 7 S weden 265. 6 Aus tral ia 37. 2%
C hina 10 J a pan 3, 156.2 Ta iwa n 625. 1 S weden 1, 733. 7 U nited S ta tes 244. 8 T aiwa n 36. 3%
S outh K orea 8 C anada 2, 286.7 Japan 526. 0 C a na da 994. 9 C a na da 196. 2 G ermany 31. 2%
J a pa n 6 S weden 2, 019.9 Hong K ong 233. 4 S outh K orea 670. 6 J apan 109. 6 J a pa n 21. 9%
T a iwa n 3 T a iwa n 1, 875.4 Ca na da 228. 7 J a pa n 503. 9 S outh K orea 91. 1 S weden 15. 3%
A ustra lia 2 S outh K orea 1, 362.9 S outh K orea 170. 4 H ong K ong 389. 9 T a iwan 52. 6 I ta ly 14. 6%
G ermany 2 G erma ny 254.4 United S tates 139. 0 T aiwan 366. 5 I taly 34. 9 M a la ys ia 13. 8%
S witz erla nd 1 H ong K ong 233.4 Ita ly 137. 8 I ta ly 238. 9 H ong K ong 30. 8 R uss ia 13. 1%
H ong K ong 1 I ta ly 137.8 G erma ny 127. 2 R uss ia 152. 7 R uss ia 19. 9 H ong K ong 7.9%
F inla nd 1 R uss ia 104.0 R us sia 104. 0 I ndia 116. 2 M alays ia 10. 8 S outh K orea 6.4%
I ta ly 1 S witz erla nd 90.1 S witzerland 90. 1 M a la ys ia 78. 1 G erma ny 10. 6 S witz erla nd 1.9%
U nited K ingdom 1 F inland 51.1 Finland 51. 1 G ermany 57. 1 Aus tralia 3. 0 U nited S ta tes -10.1%
I ndia 1 M alays ia 27.7 Malay sia 27. 7 S witz erla nd 40. 0 S witz erland 0. 8 C anada -13.5%
S weden 1 I ndia 26.0 India 26. 0 Aus tra l ia 15. 7 N orway -1. 1 I ndia -23.5%
R us sia 1 Aus tra lia 19.5 Australia 9. 7 F inla nd 6. 0 U nited K ingdom -1. 9 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. 6 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. 3 F inla nd #DI V /0!

G rand To tal 90 G rand T otal 61,190.5 G rand Total 679.9 G rand T otal 12,847.5 G r and T otal 2,736.4 G rand T otal 8.2%

Figure 21. 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 19 SE HK 26, 184.3 S E HK 8,728. 1 OM 1, 733. 7 N a sdaqG S 1,694. 3 S EHK 42. 9%

N as da qG S 14 N asdaqG S 23, 507.4 OM 2,019. 9 N a sda qG S 484. 3 S E HK 598. 6 AS X 37. 2%
OT C P K 11 TSE 2, 901.9 NY S E 1,750. 3 S E HK 421. 1 OM 265. 6 GT SM 36. 3%
K OS E 6 OM 2, 019.9 Na s daqG S 1,679. 1 CM 238. 9 TSE 90. 1 XT R A 31. 2%
TSE 5 NYS E 1, 750.3 G TS M 798. 4 NYS E 219. 1 K OS E 79. 0 N asdaqG S 30. 2%
N as da qG M 5 GTS M 1, 596.8 TS E 580. 4 R TS 152. 7 GT S M 52. 6 TSE 22. 7%
TSX 4 K OS E 1, 276.8 OS E 254. 3 BSE 116. 2 CM 34. 9 OS E 18. 0%
T S XV 4 TSX 306.4 K OS E 212. 8 OS E 108. 9 R TS 19. 9 OM 15. 3%
S E HK 3 N asdaqG M 274.0 CM 137. 8 K OS E 100. 3 OS E 19. 6 CM 14. 6%
A ME X 2 XT R A 254.4 XT R A 127. 2 GT S M 91. 4 K LS E 10. 8 K LS E 13. 8%
ASX 2 OS E 254.3 RT S 104. 0 N a sda qG M 82. 5 XTR A 10. 6 R TS 13. 1%
XT R A 2 OT CB B 210.2 SWX 90. 1 TSE 79. 0 AM E X 6. 4 K OS E 4.4%
GT SM 2 CM 137.8 TS X 76. 6 K LS E 78. 1 AS X 3. 0 N asdaqG M 3.1%
S WX 1 R TS 104.0 Na s daqG M 54. 8 TSX 42. 8 SWX 0. 8 SWX 1.9%
H LS E 1 SWX 90.1 HL S E 51. 1 SWX 40. 0 NYS E 0. 0 T S XV 1.3%
CM 1 AM E X 72.7 AME X 36. 4 AM E X 29. 9 OT CN O -1. 1 O T CB B -5. 3%
B SE 1 T S XV 66.7 KLS E 27. 7 XT RA 28. 5 AI M -1. 9 TSX -14.8%
NYS E 1 OT CP K 53.2 BS E 26. 0 OT CP K 16. 6 TSX -2. 5 BSE -23.5%
OS E 1 H LS E 51.1 TS X V 16. 7 T S XV 11. 4 N a sdaqG M -3. 1 AM E X -36.4%
A IM 1 KLS E 27.7 O TC B B 11. 1 AS X 7. 9 T S XV -6. 0 O T CP K -41.3%
OM 1 BS E 26.0 AS X 9. 7 HLS E 6. 0 HLS E -15. 6 O T CN O -50.6%
R TS 1 AS X 19.5 AIM 4. 8 OT CN O 2. 1 BSE -27. 3 NYS E #DI V /0!
K LS E 1 AI M 4.8 O TC P K 4. 8 OT CB B 2. 0 OT CP K -34. 0 AI M #DI V /0!
O T C NO 1 OT CN O 0.1 O TC NO 0. 1 AI M 0. 3 OT CB B -58. 6 H LS E #DI V /0!

G rand To tal 90 G rand T otal 61,190.5 G rand Total 679.9 G rand T otal 151.1 G r and T otal 2,736.4 G rand T otal 8.2%

Figure 22. Comparison by Exchange

Source. Capital IQ
 Page 17

Financ ing - L as t Three Months (US $ m)

Month C ompany Name C ountry Angel/S eed Debt financ ing P IP E S eries A S eries B S eries C S eries D G rand Total
May-09 F ac ebook US A 200. 0 200. 0
One Net E ntertainment C hina 10. 0 10. 0 20. 0
C yberplex C ana da 12. 9 12. 9
P eer39 US A 10. 5 10. 5
OpenX UK 10. 0 10. 0
Intent Media US A 9. 0 9. 0
Imeem US A 8. 8 8. 8
E veryZing US A 8. 3 8. 3
C onnec tE du US A 8. 2 8. 2
B logHer Inc . US A 7. 0 7. 0
WonderHill US A 7. 0 7. 0
G is t US A 6. 8 6. 8
F uhu Inc . US A 6. 3 6. 3
Azuki S ys tems US A 6. 0 6. 0
I L ove R ewards C ana da 5. 9 5. 9
Doc uS ign US A 5. 0 5. 0
TimeB ridge US A 5. 0 5. 0
OL X US A 5. 0 5. 0
Medialets US A 4. 0 4. 0
R es onate Networks US A 2. 0 2. 0
VoxP op US A 1. 5 1. 5
Mo'Minis Is ra el 1. 5 1. 5
L oop'd Network US A 0. 8 0. 8
May-09 Total 13.6 10.0 22.9 32.3 26.9 40.8 205.0 351.3

J un-09 S ugar Inc . US A 16. 0 16. 0

Tumri US A 15. 0 15. 0
B oku US A 13. 0 13. 0
Wimba US A 12. 0 12. 0
G rab Networks US A 12. 0 12. 0
AdC hina C hina 10. 0 10. 0
G oojet S AS F rance 8. 5 8. 5
AdMeld Inc . US A 8. 0 8. 0
beeTV US A 8. 0 8. 0
Nokeena US A 6. 5 6. 5
S ens e Networks US A 6. 0 6. 0
Zoos k US A 6. 0 6. 0
G ather US A 5. 3 5. 3
MojoP ages US A 5. 0 5. 0
Taomee C hina 5. 0 5. 0
Animoto US A 4. 4 4. 4
G ameG round Is ra el 4. 1 4. 1
R ingR evenue US A 3. 5 3. 5
C rowdcas t US A 3. 0 3. 0
YuMe US A 2. 9 2. 9
eR epublik S pa in 2. 8 2. 8
News er L L C US A 2. 5 2. 5
C lic kF uel US A 2. 5 2. 5
Inigral US A 2. 4 2. 4
AdE x Media US A 2. 3 2. 3
G R OU.P S US A 2. 1 2. 1
Yapta US A 2. 0 2. 0
my6s ens e Is ra el 2. 0 2. 0
OneTXT US A 2. 0 2. 0
I L ove R ewards C ana da 1. 8 1. 8
C liqs et US A 1. 5 1. 5
AdW hirl US A 1. 0 1. 0
P icaboo US A 1. 0 1. 0
G lubble Netherla nds 1. 0 1. 0
TodaC ell Is ra el 1. 0 1. 0
L iquidP lanner US A 1. 0 1. 0
Mas hL ogic US A 0. 5 0. 5
J un-09 Total 39.3 15.3 28.5 67.8 34.0 5.3 190.1
 Page 18

Month C ompany Name C ountry Angel/S eed Debt financ ing P IP E S eries A S eries B S eries C S eries D G rand Total
J ul-09 P andora Media US A 35.0 35. 0
QuickP lay Media C a nada 12.0 12. 0
C aus es US A 10. 0 10. 0
Outs park US A 8. 3 8.3
C onnec tE du US A 8. 2 8.2
S B Nation US A 8. 0 8.0
Metavers um G erma ny 6. 3 6.3
Invodo US A 6. 0 6.0
Nexage US A 4. 0 4.0
S tyleC as ter US A 4. 0 4.0
TweetDeck UK 3. 2 3.2
P rotonMedia US A 2. 5 2.5
Aloqa G erma ny 1. 5 1.5
L at49 C a nada 1. 5 1.5
Tributes .com US A 1. 2 1.2
C oTweet US A 1. 1 1.1
C likthrough US A 1. 0 1.0
P eople C apital US A 0. 5 0.5
J ul-09 Total 26.7 10.1 14.0 51.5 12.0 114.2

G rand Total 79.5 10.0 38.2 51.9 108.6 126.3 222.3 636.7

Figure 23. Financing, Last Three Months

Source. Company reports
 Page 19

C ompany Des c riptions - C urrent Month C apital Market Ac tivity

C ompany HQ Webs ite Des c ription
AdL ink Internet Media AG G ermany www.adlink.net AdLINK Internet Media AG , through its s ubs idiaries , provides digita l marketing s olutions in E urope a nd internationa lly. T he compa ny
s pecializes in dis play, affiliate, permis s ion, direct, a nd doma in ma rketing. Its Dis pla y Ma rketing s egment provides online, direct a nd dia logue-
bas ed, a nd permis s ion/ema il ma rketing s olutions . T his s egment’s portfolio compris es 4, 000 W eb s ites with a dvertis ing environment for
regiona l, na tiona l, and interna tional ca mpaigns . T he company’s Affiliate Ma rketing s egment operates as a broker between advertis ers a nd
W eb s ite publis hers . T his s egment a ls o offers profes s ional cons ulta tion, promotion options , a nd works hops . AdLINK Internet Media ’s
Doma in Ma rketing s egment operates a tra ding pla tform for the domain market, a s well as acts as a broker between doma in owners a nd
a dvertis ers . T he company wa s formerly known a s AdL INK Internet Media G mbH E urope and changed its name to AdL INK Internet Media AG
in 2000. AdLINK Internet Media wa s founded in 1996 a nd is hea dquartered in Montabaur, G ermany. AdLINK Internet Media AG is a
s ubs idiary of U nited Internet A G .
Aloqa G ermany www.aloqa.com Aloqa G mbH provides a mobile s ervice tha t notifies interes ting places , events , and F a cebook friends in real time. It s upports va rious pos ition-
finding proces s es , s uch a s cell ID, G P S , W L AN, and G S M fingerprinting; a nd enables a pplications and s ervices to tra ck us er location in rea l
time for moving or s ta tionary objects . T he compa ny s erves publis hers , a dvertis ers , mobile opera tors , a nd developers . Aloqa G mbH was
founded in 2007 and is ba s ed in Munich, G erma ny with a n additional loca tion in P a lo Alto, C alifornia .

C likthrough United S tates www.clikthrough.com C likthrough’s intera ctive media technology ma kes videos intera ctive and changes videos into online points of s a le to a cces s untapped
revenue.
C onnec tE du United S tates www.connectedu.net C onnectE du, Inc. , a technology compa ny, provides W eb-ba s ed s olutions to naviga te educa tion a nd employment tra ns itions . It offers
C onnect! , a W eb-ba s ed s olution that provides us ers with informa tion and guidance in curriculum, college, a nd career pla nning, a s well a s
online tools and res ources to na viga te their high s chool, college, a nd ca reer life cycles ; a nd P rep HeadQ uarters , a s et of Internet-ba s ed tools
to enhance high s chool guida nce, a nd ma ke college a nd career prepa ra tion. T he company s erves s tudents , pa rents , guida nce couns elors ,
a dmis s ion officers , trans fer advis ors , enrollment managers , and employers . It has s tra tegic partners hips with Na tiona l C ollegiate Athletic
As s ociation; a a l S olutions ; C ouncil of North C entral T wo Y ea r C olleges ; Marcia B renner As s ocia tes ; Ma ine S tate G E AR UP ;
W eidenha mmer; S kyward; C omputer Ma na gement T echnologies ; S chools O P E N, L . L . C . ; S chool Information S ys tems , Inc. ; a nd S oftwa re
T echnology, Inc. C onnectE du, Inc. was founded in 2002 and is ba s ed in B os ton, Ma s s achus etts .

C oTweet United S tates www.cotweet.com C oT weet is a bus ines s front-end for T witter, enabling compa nies to engage in proa ctive ma rketing a nd res pons e-oriented cus tomer s ervice
a ctivities .

Hi-Media S .A. F ra nce wwww.hi-media.com Hi-Media S . A. opera tes a s a n advertis ing ma na gement compa ny in F ra nce. It markets a dvertis ing s pa ce to a dvertis ers on the Internet. T he
compa ny a ls o offers a ra nge of s ervices to digita l media publis hers , including direct ma rketing s ervices , which compris e direct marketing
media planning, email, mail, S MS a ddres s es lea s ing, a nd implementing intera ctive T V ca mpa igns ; a nd micro-pa yment technica l pla tform
a nd s ervices . In a ddition, it provides s ervices for pros pecting a nd canvas s ing of a dvertis ers . Hi-Media S . A. wa s founded by C yril
Zimmerma nn in 1996. It was formerly known as Hi-Media Multimedia and changed its name to Hi-Media S . A. in 2000. T he compa ny is ba s ed
in P a ris , F ra nce.
Invodo, Inc. United S tates www.invodo.com Invodo, Inc. offers s ecure client-controlled and two-way excha nges of corpora te and us er genera ted video communications between
compa nies , employees , and cus tomers . It provides s yndication, reporting and s ta ts , a nd cus tomer s ervices ; a nd a ccount management
s ervices , including video production and editing, video product pod crea tion, UP C /S K U ma pping a nd integra tion, and video content review.
T he compa ny a ls o offers video production s ervices tha t compris e producing, directing, film a nd video photogra phy, HDT V , crew pla cement,
production management, loca tion s ound, non-linea r editing, audio pos t and mus ic production, and s trea ming media . It s erves ma nufa cturers
a nd reta ilers . T he compa ny was founded in 2006 and is ba s ed in Aus tin, T exas .
L at49 (Idealix s oftware) C ana da www.lat49.com IDE LIX S oftware, Inc. opera tes a n online a dvertis ing network of intera ctive maps . Its network of online map properties provides loca l a nd
brand advertis ers a n interactive medium for delivering geo-ta rgeted a nd contextual dis play a dvertis ements . T he compa ny s erves a dvertis ers ,
W eb s ite publis hers , a nd us ers . IDE LIX S oftware, Inc. was formerly known as Advanced Numerical Methods , L td. a nd cha nged its na me to
IDE LIX S oftware, Inc. in 2001. T he compa ny was founded in 1996 and is hea dqua rtered in V ancouver, C a na da .

Metavers um G ermany www.metaversum.com Metavers um G mbH develops a nd opera tes T winity, a 3D online pla tform. T he T winity allows members to create a pers ona l a vatar, explore
virtua l cities , move into a 3D home, cha t with friends , a nd work together in E urope a nd internationa lly. Meta vers um G mbH has a s tra tegic
media pa rtners hip with zitty; and a s tra tegic pa rtners hip with B igpoint. T he compa ny wa s founded in 2006 and is bas ed in B erlin, G erma ny
with additional offices in K iev a nd S inga pore.

Nexage United S tates www.nexage.com NE X AG E , Inc. opera tes a s a wireles s a nd multimedia s oftwa re and s ervices compa ny in the United S ta tes a nd internationa lly. It focus es on
providing hos ted white la bel mobile video enterta inment, a dvertis ement, and s ocial networking s olutions for media compa nies , content
providers , a nd ca rriers . T he company offers P honeC a s t-P ro, which provides for the automa tic content inges tion, encoding, management,
publis hing, and delivery of s treaming mobile video content; P honecas t C lick-to-V ideo, a mobile advertis ing s olution for ad a gencies and
a dvertis ers to create mobile W eb pa ges and load videos for a mobile advertis ing ca mpaign; a nd MyC orner, a bra nded mobile video s ervice
with content for opera tors . NE X AG E , Inc. was founded in 2005 and is ba s ed in F remont, C alifornia.

OutS park, Inc. United S tates www.outspark.com O utS park, Inc. , a n entertainment s ervices company, publis hes a nd opera tes enga ging online multipla yer ga mes . T he company was founded
in 2006 and is ba s ed in S a n F ra ncis co, C a lifornia with a s ubs idiary office in S eoul, K orea.

P andora Media United S tates www.pandora.com P a ndora Media , Inc. , a n Internet radio compa ny, provides mus ic dis covery s ervices in the United S ta tes . T he compa ny taps mus ica l
collection to deliver s ervice on computer, in the home, a nd on mobile devices . It collects melody, ha rmony, ins trumentation, rhythm, vocals ,
a nd lyrics of a s ong. P andora Media, Inc. was formerly known as S a va ge B ea s t T echnologies . T he compa ny wa s founded in 2000 a nd is
bas ed in O a kland, C a lifornia .

P eople C apital United S tates www.people2capital.com T he P eople C a pital peer-to-peer s tudent loan lending pla tform facilita tes lending decis ions bas ed on a s tudent’s “potentia l” rather than credit
P eople Media United S tates www.peoplemedia.com payment
P his tory.
eople Media T he P eople
operates more Ctha
apital
n 20 platform
vertica llygenerates liquidity
focus ed online in the ma rket
communities by matching
primarily gea reda lltowards
lendersdating.
with a ll borrowers , not jus t “fa mily and

P rotonMedia United S tates www.protonmedia.com P rotonMedia LL C provides 3D virtua l world technology, and corpora te tra ining and developing s oftware for enterpris es . It offers P rotoS phere,
a private virtual world environment for colla bora tion and learning, a nd a s uite of communica tions a nd s ocia l networking tools des igned to
overcome linear communications and crea tes a networked learning orga nization. T he compa ny’s tools als o ena ble tra iners a nd employees to
intera ct a nd colla bora te us ing the s ys tem's built-in application s ha ring, voice over IP , text chat, and video broa dca s ting fa cilities . Its clients
include bus ines s a nd education s ectors . P rotonMedia LL C was founded in 1998 and is ba s ed in L ans da le, P enns ylva nia .
 Page 20

Quic kP lay Media C ana da www.quickplaymedia.com Q uickP lay Media, Inc. provides media ma na gement a nd dis tribution s olutions for mobile televis ion (T V ) and video s ervice compa nies . It
provides O penV ideo, a platform tha t offers a pplica tion integra tion for mobile opera tors , media companies , and technology pa rtners in North
America a nd E urope. T he compa ny a ls o offers managed s ervices , including inges tion a nd dis tribution of content, media ma nagement,
a pplica tion development, a nd reporting a nd s ettlement s ervices , a s well a s live a nd on-dema nd content s ervices . In a ddition, it provides
hos ted s olutions that integra te mobile T V /video s ervices into on-deck and off-deck mobile Internet s ites , a nd content s yndica tion s ervices .
T he compa ny was founded in 2004 and is hea dqua rtered in T oronto, C a nada. It has local s a les offices in North America and E urope.
S B Nation (S ports blogs Inc .) United S tates www.sbnation.com S ports blogs , Inc. , doing bus ines s as S B Na tion, engages in building s ports s ites on the W eb. It offers bas eba ll, ba s ketba ll, college, footba ll,
a nd hockey blogs , a s well a s genera l blogs , s uch as fa ntas y s ports , cycling, a uto ra cing, golf, fitnes s , fighting, a nd mis cellaneous . T he
compa ny wa s incorpora ted in 2004 a nd is bas ed in W as hington, Dis trict O f C olumbia .
S tyleC as ter United S tates www.stylecaster.com S tyleC a s ter Media G roup, L L C provides online fa s hion-lifes tyle informa tion s ervices . T he compa ny is ba s ed in New Y ork, New Y ork.

Tributes United S tates www.tributes.com T ributes , Inc. opera tes T ributes . com, a n online res ource for current local and na tional obitua ry news . T he company operates as a n online
community to provide s upport during times of los s and grieving. It als o ena bles the vis itors to light ca ndles or place online gifts on va rious
current a nd his torical obitua ries ava ila ble on the na tional obitua ry news s ite, a s well as to s ha re photos , videos , recollections , a nd other
a rtifacts . In addition, the company’s obitua ry and online memoria l s ervice informa tion helps people to come together online and offline to
remember a nd s ha re the s tories of the people in their lives who ha ve pas s ed awa y. It has s tra tegic partners hips with E ons , Inc. ; and Dow
J ones & C ompa ny. T he company wa s founded in 2008 a nd is ba s ed in B os ton, Mas s a chus etts . T ributes , Inc. opera tes a s a s ubs idia ry of
E ons , Inc.
Tweetdec k United K ingdom www.tweetdeck.com T weetDeck, Inc. offers a des ktop a pplica tion to brea k twitter feeds into mana geable bite s ized pieces . Its application ena bles us ers to s plit
their main feed into topic or group s pecific columns a llowing a broader overview of the tweets . T he compa ny was founded in 2008 and is
bas ed in L ondon, the United K ingdom.

Figure 24. Company Descriptions

Source. Company reports, Capital IQ, Crunchbase
 Page 21

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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