SOFTWARE & SERVICES 28 JULY 2009

DAVID SHORE, CFA, MBA 416.860.6784

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

ARE ANGELS MO RE IN TUNE WITH IPO COMPANIES THAN VCS?

UN D E RP RI CI N G O F I P O S L E S S L IK EL Y W IT H A N G EL IN V E ST OR S
In a new research report, the University of New Hampshire’s Center for Venture Research suggests that IPO
companies are less likely to be underpriced if backed by angels. This may be because the angels are more likely to
sell shares as part of the IPO than venture capitalists. The research examined all companies that went public in the
U.S from 2001 through 2007, having eliminated the bubble years of 1999-2000. The study determined that angel
investors are more concentrated in their investments (and diversify less) compared to VCs. As a result, angels are
more likely to sell some of their shares, aligning their interest with the company, i.e. to raise as much money as
possible through the IPO. Venture capitalists typically claim market gains when they sell or distribute their stakes
after the 6-month lockup and want to show a large run up. An apparent implication of this study for companies
seeking investments is that it helps them evaluate investment options with angels and venture investors. In our
opinion, the benefits that accrue to a company from each class of investor are different and should be evaluated
based on the larger strategic context.

Super Rewards fetches up to $50 million in acquisition: Canadian company Super Rewards (subsidiary of KITN
Media) is rumoured to have fetched $50 million in its acquisition by Adknowledge. Thus far in July, online media
company Pandora (Internet Radio) has secured the largest financing transaction ($35 million). In-text advertisement
company Kontera Ltd. and social networking company Ning follow with $15.5 million and $15.0 million in financings,
respectively. Total capital raised so far in July is $156.7 million through 21 transactions, averaging $7.1 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

250.0 8.0

7.1
7.0
6.6

200.0

6.0

5.0
4.9
150.0
(US$m)

(US$m)

4.0

100.0
3.0

2.0

50.0

1.0

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 13 companies showing negative returns
on the week. CDC Corp. (NasdaqGS:CHIN.A) led the group with a 65.9% return, while Gravity Co. Ltd.
(NasdaqGS:GRVY) had the worst return, dropping 8.2% 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 one public Web 2.0 companies identified: Our W eb 2.0 universe contains 91 companies, with a combined market
cap of ~$59.9 billion (Figure 1). The average market cap for the group is ~$665.4 million (but a median of only $50.2
million), with average trailing revenue of $154.3 million (median $55.2 million). The companies are also generally
profitable, with a median EBITDA margin of 13.2%. On a valuation basis, the overall average is 5.4x trailing revenue
(median 1.9x) and 10.7x trailing EBITDA (median 9.5x). Twenty of the companies have more than 500 employees.
C omparable C ompany A nalys is > W eb 2.0
Trading Current U S D Market U S D LT M To tal US D L TM T otal E BITD A T E V/LT M TE V /L TM
C om pany Nam e L TM as o f T icker E xchange Currenc y HQ Price C ap ($m) R ev ($m) E B ITDA ($m) % R evenue E BITDA 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 .58 1 6.1 4.1 (4 .4) NM 5.1x - 11
Actoz S of t C o., L td. 3 /31 /200 9 A0 527 90 K OS E KR W S o uth K orea 26, 300 18 2.5 93. 0 2 0.2 21 .7% 1.6x 7. 6x NA
AQ Inte ractive , Inc. 3 /31 /200 9 38 38 TSE J PY J apan 59, 500 3 3.9 64. 8 4 .1 6 .3% 0.1x 1. 2x 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 .01 0 .6 0.1 (2 .3) NM 1 5.6 x - 3
B igstring Co rp. 3 /31 /200 9 BS GC OT C B B USD U nited S ta tes 0 .04 1 .9 0.1 (2 .0) NM 4 4.1 x - 4
B e tawave Corpora tion 3 /31 /200 9 B W AV OT C B B USD U nited S ta tes 0 .08 2 .3 8.4 (1 2.6) NM - - 53
B e yond Commerce, Inc. 3 /31 /200 9 B Y OC OT C B B USD U nited S ta tes 0 .31 1 3.7 7.1 (9 .5) NM 2.6x - 69
B right T hings plc 9 /30 /200 8 AIM:B G T AIM G BP U nited K ingdom 0 .02 6 .5 0.3 (1 .9) NM 2 3.6 x - 9
B roa 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 3 .65 38 7.3 389 .9 3 0.8 7 .9% 1.0x 13 .0x 2, 227
C ha ngyou. com Limite d 3 /31 /200 9 C Y OU N as da qG S USD C hina 38 .17 2,0 99.4 222 .5 13 5.1 60 .7% 8.6x 14 .2x 6 28
C hina G ate wa y C orpo ra tion 9 /30 /200 8 CGWY OT C P K USD U nited S ta tes 0 .02 0 .3 6.7 (6 .6) -9 8.9% 0.0x - 37
C hine s e G amer In ternation al 3 /31 /200 9 G T S M:308 3 GT SM TWD T aiwan 445 1,1 38.4 56. 2 3 1.5 56 .0% 1 9.1 x 34 .1x NA
C LIC K E R In c. 5 /31 /200 9 C LK Z OT C B B USD U nited S ta tes 0 .01 0 .7 2.5 (1 .2) -4 5.8% 0.3x - 22
C ornerW orld C orporation 1 /31 /200 9 C WR L OT C B B USD U nited S ta tes 0 .05 3 .2 1.3 NM NM 3.6x - NA
C yberplex Inc. 3 /31 /200 9 T S X:C X TSX C AD C ana da 2 10 2.9 75. 3 7 .8 10 .3% 1.3x 12 .7x NA
DADA S pA 3 /31 /200 9 C M:D A CM E UR Ita ly 6 .28 14 4.7 239 .0 3 5.0 14 .6% 0.8x 5. 6x 5 78
DXN Holdings B hd 2 /28 /200 9 DXN KL S E MY R Ma la ys ia 0 .40 2 6.2 78. 6 1 0.9 13 .8% 0.5x 3. 7x NA
Dibz Inte rnation al, Inc. NA DIB Z OT C P K USD U nited S ta tes 0 .00 0 .0 NA NM NM - - NA
DigitalP o st Inte ra ctive , Inc. 3 /31 /200 9 DG LP OT C B B USD U nited S ta tes 0 .07 4 .9 0.7 (2 .6) NM 8.8x - 7
DigitalT own, In c. 5 /31 /200 9 DG T W OT C B B USD U nited S ta tes 1 .40 3 7.9 NM (2 .5) NM - - 3
Dolph in D igital Me dia, In c. 3 /31 /200 9 DP DM OT C B B USD U nited S ta tes 0 .30 1 5.5 0.8 (3 .7) NM 2 1.3 x - NA
E o lith C o. L td. 1 2/31 /200 8 A0 410 60 K OS E KR W S o uth K orea 785 4 5.8 14. 8 (3 .5) -2 3.6% 3.2x - NA
E xte ns ions , Inc. 3 /31 /200 9 E XT I OT C P K USD U nited S ta tes 0 .08 3 .6 NM NM NM - - 2
F luid Mus ic Ca nada, Inc. 3 /31 /200 9 T S X:F MN TSX C AD U nited S ta tes 0 .91 4 4.2 5.0 (6 .9) NM 6.8x - NA
F ro gs te r Interactive P ictu re s AG 1 2/31 /200 8 FRG XT R A E UR G ermany 12 .80 4 2.8 3.3 (6 .2) NM 1 2.5 x - NA
G a ma nia Digital E ntertainmen t C o., L td. 3 /31 /200 9 61 80 GT SM TWD T aiwan 60 .30 27 8.6 126 .0 2 0.9 16 .6% 2.0x 12 .2x NA
G a me On C o L td. 3 /31 /200 9 38 12 TSE J PY J apan 1 06, 400 10 7.9 77. 2 1 8.3 23 .7% 0.6x 2. 5x NA
G e oS e ntric O yj 3 /31 /200 9 G E O1 V H LS E E UR F inland 0 .04 5 1.1 6.0 (1 5.6) NM 7.8x - 1 08
G iant Intera ctive G roup, Inc. 3 /31 /200 9 GA NY S E USD C hina 8 1,8 38.4 219 .0 NM NM - - 1, 570
G iga Media Ltd. 3 /31 /200 9 G IG M N as da qG S USD T aiwan 5 .00 27 2.6 183 .6 NM NM 1.1x - 7 51
G ravity C o., L td 3 /31 /200 9 GR VY N as da qG M USD S o uth K orea 1 .46 4 0.6 46. 1 1 2.7 27 .5% - - 4 69
G ree, Inc. 6 /30 /200 8 T S E : 363 2 TSE J PY J apan 6, 860 1,6 10.2 30. 8 1 1.1 36 .0% 4 9.6 x - NA
G u ngH o O nline E n tertainment, In c. 3 /31 /200 9 37 65 OS E J PY J apan 2 17, 800 26 1.7 108 .1 1 9.4 18 .0% 2.2x 12 .0x NA
H anbitS of t, Inc. 3 /31 /200 9 A0 470 80 K OS E KR W S o uth K orea 4, 485 7 9.1 55. 6 (1 4.9) -2 6.8% 1.1x - NA
IAC /In terActiveC orp. 3 /31 /200 9 IAC I N as da qG S USD U nited S ta tes 18 .05 2,7 24.0 1 ,40 6.4 4 2.6 3 .0% 0.6x 19 .7x 3, 200
IAS E nergy, Inc. 1 /31 /200 9 IAS C.A OT C B B USD C ana da 0 .15 1 0.5 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 .8 1.6 (5 .1) NM 1.8x - NA
J umbu ck E ntertainment P ty Ltd. 1 2/31 /200 8 AS X:J MB AS X AU D Au s tra lia 0 .35 1 4.0 14. 7 5 .5 37 .2% 0.6x 1. 6x 72
K A B D is tribu tion In c. 3 /31 /200 9 T S X:K AB TSX C AD C ana da 1 8 1.5 76. 1 9 .0 11 .9% 1.1x 9. 6x NA
K in gs oft Co . Ltd. 3 /31 /200 9 38 88 S E HK HKD C hina 8 1,0 89.9 129 .1 5 2.0 40 .3% 8.3x 20 .7x 2, 271
Lin go Media Co rporation 3 /31 /200 9 T S XV : LM T S XV C AD C ana da 1 .10 1 2.7 0.9 (1 .6) NM 1 2.1 x - NA
Live World Inc. 3 /31 /200 9 LV WD OT C P K USD U nited S ta tes 0 .04 1 .1 11. 4 (0 .0) -0 .4% 0.0x - NA
Lo okS mart, Ltd. 3 /31 /200 9 LOOK N as da qG M USD U nited S ta tes 1 .23 2 1.0 60. 7 (3 .8) -6 .3% - - 90
Magn itude Information S ys tems Inc. 3 /31 /200 9 MA G Y OT C B B USD U nited S ta tes 0 .01 3 .4 0.1 (3 .1) NM - - 14
Mixi, Inc. 3 /31 /200 9 21 21 TSE J PY J apan 685 000 .00 1,1 04.4 126 .4 4 4.8 35 .4% 7.8x 22 .0x NA
Mode rn Times G roup Mtg AB 6 /30 /200 9 MT G B OM S EK S weden 247 .50 2,1 93.9 1 ,84 6.6 28 3.7 15 .4% 1.5x 9. 6x 2, 969
MOK O.mobi L imited 1 2/31 /200 8 MK B AS X AU D Au s tra lia 0 .08 5 .4 1.2 (2 .4) NM 3.5x - NA
Myriad G rou p AG 1 2/31 /200 8 MY R N SWX C HF S witz erla nd 4 .10 8 1.5 40. 0 0 .8 1 .9% 2.2x - 4 05
N E OW IZ G ames C orpo ra tion 1 2/31 /200 8 A0 956 60 K OS E KR W S o uth K orea 32 500 .00 55 0.7 199 .3 5 3.5 26 .8% 2.7x 10 .1x NA
N etDrago n W ebS oft, Inc. 3 /31 /200 9 77 7 S E HK HKD C hina 6 42 1.5 87. 0 3 4.4 39 .5% 3.4x 8. 5x 2, 426
N ete as e.com I nc. 3 /31 /200 9 NT E S N as da qG S USD C hina 41 .19 5,2 90.0 470 .7 30 5.9 65 .0% - - 3, 109
N euLion Incorporate d 3 /31 /200 9 T S X:N LN TSX C AD C ana da 0 .85 8 9.7 18. 1 (1 1.8) -6 5.2% 4.2x - 2 37
N eXplore Co rpora tion 6 /30 /200 8 N XP C OT C P K USD U nited S ta tes 1 3 9.0 0.7 (6 .2) NM - - NA
N gi G roup Inc. 3 /31 /200 9 24 97 TSE J PY J apan 32 200 .00 4 1.8 92. 6 1 1.1 12 .0% 0.0x 0. 1x NA
N orthgate Te chno logies L imited 3 /31 /200 9 59 005 7 BS E INR India 38 .35 2 7.8 116 .3 (2 7.3) -2 3.5% 0.2x - NA
Open T e xt Corp. 3 /31 /200 9 OT E X N as da qG S USD C ana da 37 .23 1,9 59.2 782 .6 19 9.2 25 .5% 2.6x 10 .2x 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 .95 24 5.7 197 .2 (2 .1) -1 .0% 0.7x - 6 30
P e rfect W orld C o., Ltd. 3 /31 /200 9 PW R D N as da qG S USD C hina 35 .39 1,7 21.3 228 .2 12 4.6 54 .6% 0.4x 0. 8x 2, 096
P N I D igital Media Inc. 3 /31 /200 9 T S XV : P N T S XV C AD C ana da 1 .48 4 6.8 20. 0 0 .5 2 .3% 2.3x - NA
Qu epa s a C orp. 3 /31 /200 9 QP S A OT C B B USD U nited S ta tes 1 1 2.7 0.1 (1 0.8) NM - - 74
OA O R B C Information S ys tems 1 2/31 /200 7 R BCI R TS USD R us s ia 1 .15 15 9.5 154 .2 2 0.1 13 .1% 0.0x 0. 3x NA
S h anda Interactive E ntertainme nt L td. 3 /31 /200 9 S N DA N as da qG S USD C hina 52 .39 3,4 98.0 570 .3 26 1.0 45 .8% 0.0x 0. 1x 3, 124
S h utte rf ly, In c. 3 /31 /200 9 S F LY N as da qG S USD U nited S ta tes 15 .01 37 7.8 215 .2 2 8.3 13 .2% 1.5x 11 .0x 5 14
S K C ommun ications Co ., Ltd. 1 2/31 /200 8 A0 662 70 K OS E KR W S o uth K orea 9 520 .00 32 1.2 185 .3 1 2.1 6 .5% 1.7x 26 .7x 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 2 .2 3.3 0 .9 28 .0% 0.2x 0. 7x 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 o cia l Media V e nures , In c. 1 2/31 /200 8 S MVI OT C P K USD U nited S ta tes 0 0 .0 0.1 (0 .1) -6 0.6% 4.6x - NA
S o cia lwis e, Inc. 3 /31 /200 9 S C LW OT C B B USD U nited S ta tes 0 .77 3 3.4 0.0 (4 .8) NM - - NA
S o hu. com Inc. 3 /31 /200 9 S OH U N as da qG S USD C hina 59 .07 2,2 60.3 460 .0 20 0.5 43 .6% 4.1x 9. 4x 3, 197
S park N etworks , Inc. 3 /31 /200 9 LOV AME X USD U nited S ta tes 2 4 9.4 54. 3 1 1.8 21 .7% 0.9x 4. 2x 1 83
S pectrumDN A, Inc. 3 /31 /200 9 S P XA OT C B B USD U nited S ta tes 0 6 .8 0.1 (2 .6) NM - - 7
T en cent Ho ldin gs L td. 3 /31 /200 9 70 0 S E HK HKD C hina 103 23,8 94. 9 1 ,20 4.0 58 3.1 48 .4% 2 1.7 x 44 .9x 6, 123
T he P arent C ompany 8/2/2008 K IDS .Q OT C P K USD U nited S ta tes 0 .02 0 .4 112 .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 8 .35 21 3.0 250 .5 8 5.4 34 .1% - - 1, 626
T he S treet.com, Inc. 3 /31 /200 9 TSCM N as da qG M USD U nited S ta tes 2 .08 6 3.7 67. 0 1 .9 2 .9% - - 3 10
T otal S po rt Online A S 3 /31 /200 6 T OS O OT C NO NOK N orwa y 0 .03 0 .1 2.2 (1 .1) -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 10 .76 11 6.2 215 .6 (1 3.3) -6 .2% 0.5x - 7 00
U nis erve C ommunications Co rp. 2 /28 /200 9 T S XV : US S T S XV C AD C ana da 0 .07 1 .6 24. 1 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 8 .95 74 8.0 811 .2 17 7.3 21 .9% 1.3x 5. 8x 1, 469
U OMO Media , Inc 1 /31 /200 9 U OMO OT C B B USD C ana da 0 9 .4 0.6 (0 .5) -7 8.2% 1 5.4 x - NA
V a lueC lick Inc. 3 /31 /200 9 V C LK N as da qG S USD U nited S ta tes 12 1,0 17.5 591 .7 10 5.5 17 .8% 1.5x 8. 7x 1, 189
V O IS , In c. 3 /31 /200 9 V OIS OT C B B USD U nited S ta tes 0 5 .0 0.0 (1 .1) NM - - 4
W ebze n Inc. 3 /31 /200 9 W ZE N N as da qG M USD S o uth K orea 3 .58 4 2.4 23. 1 (0 .5) -2 .4% - - NA
W iz za rd S of twa re Co rpora tion 3 /31 /200 9 W ZE AME X USD U nited S ta tes 0 .49 2 3.4 5.6 (5 .3) -9 4.5% 4.4x - 1 10
W orlds .com In c. 3 /31 /200 9 W DD D OT C B B USD U nited S ta tes 0 .11 5 .8 0.0 (0 .8) NM - - 1
W oozyF ly, Inc. 3 /31 /200 9 W ZY F OT C B B USD U nited S ta tes 0 .15 2 .6 NM NM NM - - NA
W ynds to rm C orporation NA W YND OT C P K USD U nited S ta tes 0 .10 1 .8 NA NM NM - - NA
XIN G AG 3 /31 /200 9 O1B C XT R A E UR G ermany 30 .00 22 5.0 53. 9 1 6.8 31 .2% 3.2x 10 .2x 2 39
Y e dan gOnline Co rp. 1 2/31 /200 7 A0 527 70 K OS E KR W S o uth K orea 8, 060 10 1.8 55. 2 1 1.9 21 .6% 2.0x 9. 4x NA
Y n k K orea Inc. 3 /31 /200 9 A0 237 70 K OS E KR W S o uth K orea 5, 660 2 4.3 10. 6 (0 .8) -7 .6% - - NA
H igh 23,8 94. 9 1 ,846 .6 58 3.1 65 .0% 4 9.6 x 44 .9x 6,1 23
Lo w 0 .0 0.0 -27.3 -9 8.9% 0.0x 0. 1x 1
A vera ge 665.4 154.3 34.0 6.8% 5 .4x 10. 7x 900
Median 5 0.2 55. 2 0 .8 13 .2% 1.9x 9. 5x 4 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 )
Super Rewards fetches up to $50 million in acquisition: Canadian company Super Rewards (subsidiary of KITN Media)
is rumoured to have fetched $50 million in its acquisition by Adknowledge. Thus far in July, online media company Pandora
(Internet Radio) has secured the largest financing transaction ($35 million). In-text advertisement company Kontera Ltd.
and social networking company Ning follow with $15.5 million and $15.0 million in financings, respectively. Total capital
raised so far in July is $156.7 million through 21 transactions, averaging $7.1 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

250.0 8.0

7.1
7.0
6.6

200.0

6.0

5.0
4.9
150.0
(US$m)

(US$m)
4.0

100.0
3.0

2.0

50.0

1.0

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)

note).

0.0
50.0
100.0
150.0
200.0
250.0
Facebook
People Media
Super Rewards

Source. Company reports

AdLink Internet Media
Pandora Media
StumbleUpon
One Net Entertainment
xoopit
ConnectEdu
Sugar Inc.
Kontera Ltd.
Ning
Tumri
Boku
Cyberplex

Figure 3. Capital Market Activity, Last Three Months

QuickPlay Media
Wimba
Grab Networks
Peer39
AdChina
Causes
OpenX
Intent Media
Imeem
Goojet SAS
Outspark
EveryZing
Acquia, Inc
AdMeld Inc.
beeTV
SBNation
I Love Rewards
BlogHer Inc.
WonderHill
Gist
blueKiwi Software SA
Nokeena
Metaversum
Fuhu Inc.
Bubble Motion
Invodo
Sense Networks
Zoosk
Azuki Systems
Gather
DocuSign
OLX
TimeBridge
Taomee
MojoPages
Animoto
GameGround
OPEN Sports network
Medialets
Nexage
StyleCaster
RingRevenue
TweetDeck
Crowdcast
YuMe
eRepublik
ClickFuel
Financing & M/A Summary - Last Three Months

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

with a group of webcasters regarding royalty rates. Pandora, which derives most of its revenue from advertising, indicated
that it would be joining the new agreement as well. For additional details on financings, see Figures 23 and 24 (at end of
Rewards (subsidiary of KITN media) was acquired by AdKnowledge for a rumoured $50 million. On the capital raise front,
Pandora had the largest raise so far in July, securing a $35 million round. Recently, copyright holders reached agreement
Pandora raises $35 million and Super Rewards is acquired for up to $50 million: On the acquisition front, Super
 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
($265.5 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 (17), raising $153.2 million (Figure 4).

Capital Market Activity by Sector - Last Three Months

300.0

250.0

200.0
(US$m)

150.0
265.5

100.0

153.2

50.0
80.0 76.6
51.5
35.0 31.0 29.8 29.0 26.4 21.5 19.3 18.9 17.0 16.5 13.3 13.0
0.0 6.8 6.3 5.2 3.2 1.0 1.0
Comment/Reputation

Mobile Payment

Communities
Online Dating

Gaming

Mobile

Enterprise

Online Learning

Collaboration

Media

Microblog
Music
Infrastructure

Blog

Search

Mobile Ad
Widget
Social Networks

Virtual World

Video

Aggregation
Ad Network

Analytics
Vertical
# companies
13 17 1 5 8 1 3 6 1 4 4 6 3 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 earlier this year. However, the index has recently had a
much stronger recovery relative to the NASDAQ index (Figure 5).

130
Web 2.0 Index Price Performance

120

110

100

90

80

70

60

50

40
7/28/08
8/7/08

8/19/08
8/29/08
9/10/08
9/22/08
10/2/08
10/14/08
10/24/08
11/5/08

11/17/08
11/27/08
12/9/08
12/19/08
12/31/08
1/12/09
1/22/09

2/3/09
2/13/09
2/25/09
3/9/09
3/19/09
3/31/09

4/10/09
4/22/09
5/4/09
5/14/09
5/26/09
6/5/09
6/17/09
6/29/09

7/9/09
7/21/09
^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 13 companies showing negative returns on the
week. CDC Corp. (NasdaqGS:CHIN.A) led the group with a 65.9% return, while Gravity Co. Ltd. (NasdaqGS:GRVY) had
the worst return, dropping 8.2% in the week.

1 Week P rice P erformance

CDC Corp. 65.9%
K ings of t Co. Ltd. 12.4%
Cy berplex Inc. 11.0%
United Online Inc. 10.0%
LookS mart, Ltd. 9.8%
A Q Interactive, Inc. 8.2%
Tree.Com, Inc. 7.8%
Northgate Technologies 6.5%
S hutterf ly , Inc. 6.4%
Quepas a Corp. 5.3%
XING A G 5.3%
Giant Interactive G roup, Inc. 5.0%
DA DA S pA 4.9%
Frogs ter Interactive Pictures 4.9%
TheS treet.com, Inc. 4.5%
IA C/InterA ctiveCorp. 4.5%
Modern Times G roup Mtg A B 4.0%
V alueClick Inc. 3.0%
NetDragon WebS oft, Inc. 2.7%
NEOWIZ Games Corporation 1.9%
Y edangOnline Corp. 1.5%
G ree, Inc. 1.2%
Webz en Inc. 1.1%
Perfect World Co., Ltd. 1.1%
Open Tex t Corp. 1.1%
Openw ave S y s tems Inc. 0.7%
Netea s e.com Inc. 0.5%
G ameOn Co Ltd. 0.4%
Mix i, Inc. -0.1%
S K Communications Co., Ltd. -0.3%
Eolith Co. Ltd. -0.6%
S park Netw orks , Inc. -0.8%
PNI Digital Media Inc. -1.3%
Ngi G roup Inc. -1.4%
G igaMedia Ltd. -2.2%
A ctoz S of t Co., Ltd. -3.5%
HanbitS oft, Inc. -3.5%
Tencent Holdings Ltd. -3.7%
Y nk K orea Inc. -4.4%
The9 Limited -5.1%
Gravity Co., Ltd -8.2%
-20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%

Figure 6. 1-Week Price Performance

Source. Capital IQ

INDUSTRY NEWS (PARTNERSHIPS, FINANCIAL RESULTS, NEW PRODUCTS)
K ey Developments
C ompany
C LIC KE R Inc. (OT CB B: C L KZ)
B eyond Commerc e, Inc .
(OT CB B: B Y OC)
T ree. Com, Inc . (Nas daqG M: TR E E )
OA O R BC Info rm atio n S ys tem s
(R TS : R B CI)
L eadRelevanc e, L LC ; Tree.C om, In c.
(Nas daqG M:TR E E ); webloyalty. c om,
Inc.
S pec trumDNA, Inc . (OTC BB :S PXA)
L o okS mart, Ltd. (Nas daqG M: LOOK )
V OIS , Inc . (OTC BB :VOIS )
Modern Times G ro up Mtg AB (OM: MTG Modern Times G roup Mtg A B R eports U na udited
B) Cons olida ted E arnings R es ults for the S econd Quarter
a nd S i x M onths E nded J une 30, 2009
V OIS , Inc . (OTC BB :VOIS )
DigitalPo s t Interac tive, In c.
(OT CB B: DG L P)
Headline
Click er S eek s F unds
B eyond Commerce I nc. B rings J ob O pportunities to
Detroit
L endingTree E mpowers C onsumers with New R a nge of
P ersona l F inance Tools
OAO R B C I nformation S y stems announce d it will receive OAO R B C I nformation S y stems (R T S : R B C I ) a nnounc ed a priva te placement of c ommon sha res for the gros s proceeds of $80 million on
$80 million of funding from ON E XI M G roup.
T ree. Com, I nc. (Nas da qG M: T R E E ) a cquired
L eadR elev ance, L LC from webloya lty. c om, Inc .
S pec trumDN A I nc . Appoints J eff Nola n to its B oa rd of
Direc tors
L ooks mart L td. Announces Full R elea s e of S martR ota tion L ookS mart L td. a nnounc ed the full rele a se of S martR ota tion, a cos t-per-a ction (C P A) driven tool that automatic ally s erves the bes t-
V O IS I nc. La u nches V OI S Questions and Answers
V O IS I nc. I ntroduces M icro. V OI S for Twitter
Digita lP os t Intera ctiv e I nc. to P rovide Additiona l S oftware Digita lP ost Intera ctive I nc. a greed to provide additiona l s oftwa re development a n d c onsulting services for Loca l. com C orporation, acc ording
Development a nd C onsulting S ervices for Loca l.c om
Corpora tion
Page 8
Notes
Clicker Inc . s aid in a S E C 10-Q filing, “C ash and cas h equiv alents were $1,355 at May 31, 2009 compa red to $36, 678 at May 31, 2008. W e
recorded a los s of $2, 563,925 for the nine months ended M ay 31, 2009 compa red to a los s of $1,4 62,423 for the s a me period i n 2008.
T hes e fac tors a nd our abili ty to meet our debt obliga tions from current opera tions , a nd the need to ra is e a dditiona l capita l to a cc omplish our
objectives ra i ses doubt a bout our a bility to continue as a going c oncern. W e expect s ignifi cant c apita l expenditures during the next 12
months , contingent upon ra ising ca pi tal. T hese anticipated ex penditures a re for s oftwa re development, as sets additi ons, adminis trative
overhea ds and work ing c apita l requirements. W e do not ha ve sufficient funds to c onduct our opera tions for more than a month and we will
need an a dditiona l $2, 000,000 to fund our antic ipated opera tions for the nex t 12 months, depending on revenues from operations. W e have
no contrac ts or commitments for a dditiona l funds and there ca n be no a ss urance that financing will be a va ila ble in a mounts or on terms
a cc epta ble to us , if a t a ll. W e will need to obtain a dditional ca pita l in order to ex pa nd operations and become profita ble. I n order to obta in ca pi
B eyond Commerce Inc . bring job opportunities to Detroit through its loc al bus ines s sea rc h directory a nd a dv ertis ing network,
www.Loca lAdLink .com. L ocalAdLink hopes to initially employ 500 full & pa rt-time A ccount E xecutives a s independen t sa les repres enta tives
in the D etroit area ; a nd up to 5, 000 people in the next s ix months . LocalAdLi nk will offer free online training, da ily webi na rs and regiona l &
corpora te tra ining events. Acc ount E xec utives wil l be respons ible for ma rk eting adv ertis ing s erv ices to s mall to medium-s ize busines s es,
either loca lly or na tiona lly. L oc alAdLink will be hos ting a free bus ines s overv iew a nd introduction for potentia l Acc ount E x ecutives in the
Detroit a rea on J uly 23, 2009 from 6: 30 p. m. to 9: 30 p. m. a t the R a mada P la za Hotel in T roy. S pec ia l guests will inc lude D etroit na tiv e D a vid
Moceri, Direc to r of S ales & P roduc t De velopment and D r. S cott E lliott, Advisory B oa rd.
T ree. Com Inc. launched a new fea ture-rich webs ite, including a suite of ea s y -to-us e, comprehens ive financia l services , ma king it the premier
solution for a ll pers ona l fina nc ial needs . LendingT ree has a lready helped over 28 mil lion customers sea rc h for the right loans , a nd now the
company is lev era ging its experience and k nowledge to help cons umers with other a s pec ts of their financ ial lives . T he redes igned s ite now
offers produc ts and services in a ll financia l categories --from mortgages and insurance to credit c ards and money management. S ome of the
new fea tures include: Money R ight: Money R ight a llows consumers to aggregate a ll of their pers ona l fina nc es and accounts in a sing le
convenient inte rfa ce. Money R ight is a n online persona l fina nce guide with ea s y-to-understa nd, pra ctica l recommendations rega rding
budgeting, credit s cores , s a vings a cc ounts , loa ns and more, a ll customized specifically to each user. Look B 4U Lock : T his feature provides
cus tomers with a critical last-minute ch eck to mak e s ure they are getting the best deal pos sible before loc king into a loan. Us ers enter the
terms of a mortga ge offer from a ny lender and rec eive a rating a nd poi nt-by -point recommendations for ea ch of the loa n's v ariables.
J uly 21, 2009. New inv estor O N E X IM G roup will gain 51% s ta k e in the c ompany and will ga in the ma jority seats in company's boa rd of
directors.
T ree. Com, I nc. (N asda qG M: T R E E ) a cquired L ea dR elevance, L LC from webloy a lty .com, Inc. on J uly 21, 2009.
T ree. Com, I nc. (N asda qG M: T R E E ) co mpleted the acquis ition of L ea dR elevance, L LC from webloy a lty .com, Inc. on J uly 21, 2009.
S pectrumDN A I nc. a nnounced the appointment of J eff Nola n, entrepreneur, venture c apitalis t and prolific s ocia l media stra tegis t, to its board
of directors . Mos t recently , Mr. N olan was the V P Corporate D evelopment at N ews G ator T echnologies .
performing a d c reative in an a d group based on c onversion da ta from a tra ck ing pixel. T he new tool, a fea ture of LookS mart's ad rota tion,
a llows a dv ertis ers to optimize ca mpa igns by convers ion events like s ales sign-ups , downloads, and regis trations to drive higher performanc e.
S martR ota tion automa tic ally serves the ad crea tive with the best C P A in a c ampa ign, provides detailed informa tion about which key words
a nd traffic s ources a re performing, ea s y to integra te into online ca mpaign management a nd is built on L ook S ma rt's AdC enter platform.
V O IS I nc. announced it has la unched V OI S Q uestions and Answers (www.v ois. com/a ns wers), a n ans wers s ervic e tha t a llows its members to
a sk their busines s-rela ted questions, and rec eive answers fro m the thousa nds of ex perts in the V O I S network. T he s ervice gives the site's
100,000 plus members a fa st and reliable wa y to get the industry specific ans wers they want ans wered and builds upon their profes sional
reputation by res ponding to questions they a nswer releva nt to their ex pertis e. Q ues tions and ans wers a re tied to a member's profess ional
profile, rather than a n a nony mous username as on other ans wer network s, offering more credible respons es. Q uestions ca n be ta rgeted to a
specific member's network , or they may be opened up to the entire V OI S network from a round the world. E xperts benefit by res ponding to
member questions with the hope of bei ng awarded the bes t a ns wer, a nd winning any credits a s soc ia ted with that awa rd. For those members
who cons istently provide expert ans wers , V O I S will promote their ex pertis e to other members , providing a grea ter opportunity to build soc ial
capita l a nd to a tta in more bus iness .
Modern Times G roup Mtg AB reported una udited cons olida ted earnings res ults for the second qua rter a nd s ix months ended June 30, 2009.
F or the quarter, the company reported net income a ttribu table to equity holders of the pa rent wa s S E K 425 million or S E K 6. 45 per diluted
sha re on net sa le of S E K 3,584 million a ga ins t net income attributa ble to equity holders of the parent was S E K 1, 570 million or S E K 23. 68
per diluted s hare on net s ale of S E K 3,318 milli on in the same period of la st y ear. O pera ting inc ome wa s S E K 588 million a ga i nst S E K 1, 756
million in the sa me period of la s t y ear. Inc ome before tax was S E K 566 million agains t S E K 1, 785 million in the s ame period of las t yea r. N et
cas h flow from operations was S E K 695 million aga ins t S E K 986 million in the s a me period of la s t year. R eturn on equity was 19% a ga inst
20% in the prev ious quarter. T he G roup's net debt posi tion, which is defined as cas h a nd ca s h equiva lents a nd interes t bea ring as s ets les s
interes t bearing liabilities , a mounted to S E K 3, 603 (net c ash of 1, 675) million a t the end of the reporting period. T his c ompa red to a net debt
position of S E K 3, 925 million as at M arch 31, 2009.
V O IS I nc. introduce d M icro. V OIS for T witter. M icro. V O I S , built on top of T witter, is the ea sies t way for T wi tter us ers to tell others that they
wa nt work or ha ve work to offer. U sing Mic ro. V OIS is a s ea s y as a dding # wa ntwork or #havework in a T witter update (also k nown as a
'T weet'). As members Tweet jobs a nd oppo rtunities, M icro.V O I S monitors th e releva nt da ta and he lps T witter members find wh a t they a re
looking for. T ry I t--Actual ly, us ing M icro. V OI S is easier than explaining it. T ry it right now: U sing Twitter, find s omeone who ha s work or wa nts
work . Then T weet your projec t or idea with the ha shtag # ha vework or #wa ntwork (for work wa nted). T he M icro. V O I S robot a utoma tic ally a dds
a ll of thos e T weets to the M icro. V O IS feed.
to the terms of a pre-exis ting profess ional services rel a tions hip with L oc al.com. P ursua nt to the current agreement, DigitalP os t will des ign,
develop and deliv er s oftware a s pres cribed by the releva nt sta tement of work , with product deliv ery expec ted to be c ompleted during the third
a nd fourth quarter of 2009. D igita l P ost will ea rn a total fee of $50,000 for the des ign, development and delivery of such s oftwa re.

MOK O.mobi Limited (AS X: MKB )
C anpages , Inc .; ZipLoc al Inc.
(T S XV: ZIP. H); ZipLocal Inc. ,
S ubs tantially All As s ets
E lec tronic Arts Inc . (Nas daqG S : E R TS ); E lectronic Arts I nc. a nd N etD ragon E nter Agreement to
NetDrago n W ebS oft, Inc. (S E HK :777)
IB 3 Networks , Inc. (OT CB B: IB NW )
ZipL oc al Inc. (TS XV: ZIP.H)
C hang yo u. c om L imited
(Nas daqG S : C YOU)
DigitalPo s t Interac tive, In c.
(OT CB B: DG L P)
MOK O.mobi Limited (AS X: MKB )
B eyond Commerc e, Inc .
(OT CB B: B Y OC)
IAC /InterAc tiveC orp. (Nas daqG S : IAC I)
Figure 7. Key Developments
Source. Capital IQ
MO K O . mobi Limited S igns Agreement with Airtel
Ca npages , I nc. completed the a cquisition of subs ta ntia lly Ca npages , Inc. agreed in principle to acquire s ubsta ntiall y all the a s s ets of Z ipL oca l I nc. (T S X V : Z IP ) for C AD 2.4 million on Ma y 6, 2009.
a ll the a ss ets of ZipL oc al Inc. (T S X V : ZI P ).
Develop U lti ma O nline
IB 3 N etwork s I nc. Announces N ew O nline R emote
B a ck up S ervice
ZipLoca l’s Lis ting T o T ra nsfer T o NE X
Changy ou.com E nters N orth America , T aiwa n and
V ietn am Mark et a nd P lans to F ora y into E urope
Digita lP os t Intera ctiv e W ins Additiona l Contract from
Internet S earch C ompany
MO K O . mobi Limited S ec ures D eal on AT& # 38;T M obiles MO K O . mo bi Limited has s ecured a dea l for its M O K O M usic on s elected AT &T mobile handsets . T he C ha t & S ha re platform's new
B eyond Commerce I nc. Appoi nts P aul W . Morris on to the B eyond Commerce Inc . a nnounc ed tha t P aul W . Morris on ha s been a ppointed to its boa rd of direc tors . M r. Morris on is the six th me mber of
B oard of Directors
IAC /InterActiveC orp La unch of P roduction Compa ny,
Notiona l; Appoints R i ck y V a n V een to H ea d N otiona l
Page 9
MO K O . mo bi Limited has s igned an a greement with B harti Airtel Ltd. The Airtel contrac t joins previously ann ounced contracts with two other
Indian mobile c arriers, R elia nc e M obile and I dea C ellular. T he s ervice with Airtel will be based on a us er pay s subs c ription and premium
a ctivity bus iness model, where M O K O .mobi is pa id a s ha re of thes e rev enues from the mobile opera tor. T he Airtel deploy ment of MO K O will
follow other c arrier l aunches in US A, B razil, I ndia, M alays ia and U K a nd is expected to be completed by the end of 2009.
Ca npages , Inc. s igned a purc ha se agreement a cquire su bsta ntia lly a ll the as sets of Z ipL oc al I nc. on J une 19, 2009. As per the terms of the
trans action, a n entity c ontrolled by John L . Albright, C hairman of the B oard of Zi pLoca l will acquire s ubsta ntially a ll the a s s ets of Z ipL oc al
Inc . a nd then trans fer the a s sets to C anpa ges, Inc. J ohn L. Albright will pa y CAD 0. 45 million in ca s h and will cancel C AD 1. 93 million of
sec ured debt currently in defa ult. C anpa ges will is s ue its common stock to J ohn L . Albright as cons ideration and va lue of stoc k will be equal
to the va lue paid by John L . Albright. John L. Albright will provide a n a dditional C AD 1 mill ion ca sh indemnity to C anpa ges to fac ilitate the
trans action.
T ermina tio n fee for the trans a ction pa y a ble by ZipLoca l is C AD 0. 15 million. T he deal is s ubject to regulatory a pprovals , incl uding the
a pprova l of the T S X V enture E x cha nge and a pp rova l from s ha reholders of Z ipL oc al. T he B oa rd of ZipLoc al, upon recommenda tion of the
independent committee, unanimous ly recommended the tra ns action. Corma rk S ecurities Inc. ac ted a s financia l a dvis or to the S pecia l C ommit
E lectronic Arts Inc . a nd NetDragon W ebs oft I nc. , wi th its s ubs idiaries collectively k now a s the 'G roup' a nnounc ed a lic ensing agreement for
the development of a new ma ss ively multi-player online role playi ng game (M MO R P G ) ba sed on 'U ltima O n line'( T M) from E lectronic Arts. As
part of the agreement, N etDra gon will develop the new Ultima O nline(T M) in colla bora tion with E A's My thic E ntertainment, and hav e the
exc lusiv e opera ting li cens e for C hina, H ong K ong, M ac au a nd India .
IB 3 Network s I nc. and its wholly owned s ubsidiary iB eam S olutions, a Mic ros oft G old Certified P artner a nd a C is co Certified S elec t P artner,
a nnounced the avai lability of iB 3 B ac kup, it's online, s ecure, remote online hos ted bac kup solution. iB eam S olutions has developed this
service, powered by 3X sta te of the a rt ba ck up appliances , to give customers the ability to back up their sy stems for da ta protection a nd
disas ter recovery. T his s ervice a llows c ustomers to ma na ge their back ups a nd restores from an ea s y to us e web ba s ed interface, and
includes dedup lication, vers ioning and ma ny adva nc ed features. T he serv ice is des igned for cus tomers with up to 10 0G B of data, and thos e
with more da ta ca n purchas e and hos t thei r own a pplia nc e with iB eam S olutions . For thos e with under 100 G B of da ta , th e s ervice will c os t
$0.50 per G B per month pl us nomina l s etup fees .
In acc orda nc e with the TS X V enture E x change P olic y 2.5, Z ipLoca l I nc. ha s not ma in tained the requirements for a T S X V enture E x change
T ier 2 c ompa ny. T herefore, effective J uly 24, 2009, the c ompa ny 's listing will trans fer a nd resume tra ding on the N E X , the c ompany 's tier
cla s sific ation will ch ange from Ti er 2 to NE X , and the filing and s ervic e office will change from T oronto to the NE X . As of July 24, 2009, the
company is s ubject to restrictions on share is suances and certa in type s of payments a s s et out in the NE X policies .
Changy ou.com Limited a nnounc ed that the c ompany had ma de inroa ds into North A merica , T aiwa n, as well as V ietna m and would fora y into
the E uropean ma rk et within two to three y ea rs. T he company als o forecas ted tha t the company would opera te four online games
simultaneously at the beginning of 2010.
Digita lP ost Intera ctive I nc. s igned a n additional contra ct to de velop a content platform for a Internet s ea rch company . The new pla tform,
scheduled for delivery by the end of S eptember 2009, will s upport the c ustomer's strategy to p rovide increas ingly higher levels of c ontent for
its bus ines s cus tomers . T his is the third contrac t awarded to D igita l P ost by this comp a ny.
development includes enha nc ed music community which ena bles us ers to s ea rch a nd dis c over, refer a nd buy, full-length trac ks , ring tones
a nd a ns wer tones from their mobile.
the boa rd of di rectors of B ey ond C ommerc e, whic h als o includes R on L oveles s, M ich a el W ars insk e, B a rry F alk, M urra y W illia ms, and R obert
Mc Nulty. All are independent board members with the exceptions of Mr. W illiams and Mr. M cN ulty , C ha irma n of the B oa rd and C hief
E xec utiv e O ffic er. P aul W . Morris on is currently the C hief E xecuti ve O fficer a nd P resident of O mniR elia nt H oldings Inc .
IAC /I nterA ctiveC orp. a nnounc ed the launc h of Notiona l, a video content c ompa ny born out of its enterta inment property CollegeH umor. com.
CollegeH umor's origina l video s have been viewed over 300 million times a nd its viewers wa tch 100 y ea rs worth of video content eac h month.
B uilding on this succ ess ful foundation the new production company will crea te programming of a ll genres for a ll demogra phic s , to be
distributed ac ross multiple media platforms, inc luding television. T he new endeavor wa s conceiv ed a s a n ex tens ion of CollegeH umor. co m's
industry-leading c ontent s ensi bility and production capabilities . B y building o n top of that ba s e, Notional hopes to bring the DN A of an
internet compa ny to an in terna tiona l producti on compa ny . B ut unlik e CollegeH umor's y oung ma le-focus ed a udie nce, N otional's content will
a ppeal to a much broa der bas e. N otiona l will be hea ded by R ick y V an V een, who will trans ition from his c urrent role a s E ditor-in-C hief of
CollegeH umor.
 Page 10

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.

Market C ap (US D m)
Tenc ent Holdings L td.
Neteas e.c om Inc .
S handa Interac tive Entertainment L td. 3498. 0
IA C/InterA c tiveCorp. 2724. 0
S ohu.c om Inc . 2260.3
Modern Times G roup Mtg A B 2193.9
Changy ou. com L imited 2099.4
Open Tex t Corp. 1959.2
G iant Interac tive G roup, Inc . 1838.4
Perfect World Co., L td. 1721.3
G ree, Inc . 1610.2
Chines e Gamer International 1138.4
Mix i, Inc . 1104. 4
K ings oft Co. L td. 1089. 9
V alueClic k Inc . 1017.5
United Online Inc . 748.0
NEOWIZ Games Corporation 550. 7
NetDragon WebS oft, Inc . 421. 5
CDC Corp. 387.3
S hutterfly, Inc . 377.8
S K Communic ations Co., L td. 321.2
G amania Digital Entertainment Co. , 278.6
G igaMedia L td. 272.6
G ungHo Online Entertainment, Inc . 261.7
Openw ave S ys tems Inc . 245. 7
XING A G 225.0
The9 L imited 213.0
A c toz S of t Co., L td. 182. 5
OA O R B C Information S y s tems 159.5
DA DA S pA 144.7
Tree.Com, Inc . 116. 2
G ameOn Co L td. 107.9
Cy berplex Inc . 102.9
Y edangOnline Corp. 101.8
NeuLion Inc orporated 89.7
My riad G roup A G 81.5
K A B Dis tribution Inc . 81.5
HanbitS oft, Inc . 79.1
TheS treet.c om, Inc . 63.7
G eoS entric Oy j 51. 1
S park Netw orks , Inc . 49. 4
PNI Digital Media Inc . 46. 8
Eolith Co. L td. 45. 8
Fluid Mus ic Canada, Inc . 44. 2
Frogs ter Interactive Pic tures A G 42. 8
Webz en Inc . 42. 4
Ngi G roup Inc . 41. 8
Gravity Co. , L td 40. 6
NeXplore Corporation 39. 0
DigitalTow n, Inc . 37. 9
A Q Interactive, Inc . 33. 9
S oc ialw is e, Inc . 33. 4
Northgate Tec hnologies L imited 27.8
DXN Holdings B hd 26.2
Y nk K orea Inc . 24.3
W iz z ard S oftw are Corporation 23.4
LookS mart, L td. 21.0
B roadWebA s ia Inc . 19.5
A c celeriz e New Media, Inc . 16.1
Dolphin Digital Media, Inc . 15.5
J umbuck Entertainment Pty L td. 14.0
B eyond Commerc e, Inc . 13.7
Quepas a Corp. 12.7
L ingo Media Corporation 12.7
IA S Energy, Inc . 10.5
UOMO Media, Inc 9.4
S pec trumDNA , Inc . 6.8
B right Things plc 6.5
Worlds .c om Inc . 5.8
MOK O.mobi L imited 5.4
V OIS , Inc . 5.0
DigitalPos t Interactive, Inc . 4.9
is eemedia Inc . 3.8
Ex tens ions , Inc . 3.6
Magnitude Information S ys tems Inc . 3.4
CornerWorld Corporation 3.2
Wooz y Fly, Inc . 2.6
B etaw ave Corporation 2.3
S NA P Interactive, Inc . 2.2
B igs tring Corp. 1.9
Wy nds torm Corporation 1.8
Unis erve Communications Corp. 1.6
L iveWorld Inc . 1.1
CLICK ER Inc . 0.7
A s s oc iated Media Holdings Inc . 0.6
The Parent Company 0.4
China G atew ay Corporation 0.3
Total S port Online A S 0.1
S NM G lobal Holdings 0.0
S oc ial Media V enures , Inc . 0.0
Dibz International, 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
 Page 11

TEV/Revenue (LTM) averages 5.4x: The overall average TEV/Revenue (LTM) multiple for our group is 5.4x (versus 6.1x
last week) (Figure 9). Two companies trade at more than 40x revenue – Bigstring Corp. (OTCBB:BSGC) at 49.6x, closely
followed by Gree (TSE:3632) at 44.1x. The median is only 2.0x. Note that we exclude multiples greater than 50x. Twenty-
seven companies have multiples under 1.5x.

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

60. 0

49.6
50. 0
44.1

40. 0

30. 0
23.6
21.321.7
19.1
20. 0
15.4 15.6
12.112.5
8.3 8.6 8.8
10. 0
A v erage, 5. 4 6.8 7.8 7.8
5.1
3.5 3.6 4.1 4.2 4.4 4.6 4.6
2.6 2.6 2.7 3.1 3.2 3.2 3.4
1.1 1.1 1.3 1.3 1.5 1.5 1.5 1.6 1.7 1.8 2.0 2.0 2.2 2.2 2.3
0.1 0.2 0.2 0.2 0.2 0.3 0.4 0.5 0.5 0.6 0.6 0.6 0.7 0.8 0.9 1.0 1.1 1.1
0. 0

N E O WIZ G ames C orporation

MO K O .mobi L imited

UO MO Media, Inc
C LIC K E R 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.

P N I Digital Media Inc.

C hines e G amer Interna tional

U nis erve C ommunications C orp.

N orthgate T echnologies L imited

DXN Holdings B hd

C ha ngy ou.com L imited

T ree.C om, Inc.

G a meO n C o Ltd.

C DC C orp.

S K C ommunica tions C o., Ltd.

B ey ond C ommerc e, Inc.

F luid Mus ic C a nada , Inc.

DigitalP os t Intera ctive, 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

NeuLion Inc orporated

C ornerWorld C orporation

Lingo Media C orporation

S NAP Intera ctive, Inc.

United O nline Inc .

O pen T ex t C orp.
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 .

XIN G AG
E olith C o. Ltd.
NetDra gon WebS oft, Inc .

S ohu.com Inc .

Mix i, Inc .

F rogs ter Intera ctiv e P ic tures AG

As s ociated Media Holdings Inc .

T encent Holdings Ltd.

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

O penwave S y s tems Inc .

H anbitS oft, Inc .

K AB Dis tribution Inc .

Y edangO nline C orp.

Y nk K orea Inc .

S ocial Media V enures , 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 (19), trading at an average multiple of 11.1x (versus. 11.9x last week). On a geographic basis, the
United States has the most companies (39), trading at an average of 5.5x revenue (versus 4.8x last week) (Figure 11).
Ten of the companies are Canadian (average 4.6x revenue).

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

25.0 23.6 25.0 23.6

20.0 20.0

15.0 11.6 15.0

11.3
(x)

10.0
(x)

11.1
10.0 10.6 10.0 7.9
7.9 7.8 7.4
7.8 6.7 5.5
4.6
5.0 4.6 4.13.6 3.4 2.7 2.0 1.5 5.0 4.6
2.2 2.2 2.1 2.1 2.2 2.1 2.1 1.5
0.8 0.5 1.0 0.8
0.0 0.5 0.2 0.0 0.0 0.5 0.2 0.0
OTCNO

OTCPK

Germany
United
Japan

Finland

China
United

Canada

Hong Kong

Malaysia
India
Russia
OTCBB

GTSM

NasdaqGM

Italy
South
TSE

SEHK

HLSE

OSE
KOSE

NasdaqGS

RTS
OM
CM

Taiwan

Australia
XTRA

TSX
AMEX

BSE
KLSE
AIM

Norway

Switzerland

Sweden
TSXV

SWX

ASX

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

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

Source. Capital IQ

TEV/EBITDA (LTM) averages 10.7x: The average multiple for the 34 companies with positive EBITDA (and multiples
under 100x) is 10.7x LTM EBITDA (vs. 9.3x last week), led by Chinese Gamer International (3083-GTSM) 44.9x multiple
(Figure 12). Thirteen of the companies have EBITDA multiples under 7x. The median multiple is 9.5x (vs. 8.8x last week).
 Page 12

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

50. 0
44. 9
45. 0

40. 0
34. 1
35. 0

30. 0 26. 7
25. 0 22. 0
20. 7
19. 7
20. 0
14. 2
15. 0 12. 2 12. 7 13. 0
A verage, 10. 7 11. 0 12. 0
8.7 9.4 9.4 9. 6 9. 6 10. 1 10. 2 10. 2
10. 0 7.6 8.5
5.6 5.8
3. 7 4. 2
5. 0 1. 6 2. 5
0. 1 0. 3 0. 7 0. 8 1. 2
0. 1
0. 0

NE O WIZ G ames C orporation

J umbuck E ntertainment P ty Ltd.

G ungH o O nline E ntertainment, Inc .

G amania Digital E ntertainment C o. , Ltd.

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.

Ngi G roup Inc .

S NAP Interac tive, Inc .

U nited O nline 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
P erfec t World C o. , L td.

Y edangO nline C orp.

K AB Dis tribution 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 (19), trading at an average multiple of 0.7x (vs. 1.9x last week). On a
geographic basis, the United States has the most companies (39), trading at an average of 8.4x EBITDA (Figure 14). Ten
of the companies are Canadian (average 10.8x EBITDA).

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

30.0 24.7 25.0
23.1
25.0
20.0
20.0 23.1
15.0 14.1
(x)

15.0 13.4 13.4 13.0

(x)

12.0 11.1
10.2 9.6 9.3 10.8 10.2 9.6
10.0 10.0
6.4 5.6 8.4 7.6
4.2 3.7
5.0 1.6 0.7 0.3 5.6
0.0 0.0 5.0 3.7
0.0
0.3
OTCBB
GTSM
SEHK

KOSE

OSE

NasdaqGS

TSE

RTS

1.6
OM

CM
TSX

XTRA

AMEX

KLSE

BSE
SWX
ASX

0.0 0.0
Germany
China

Hong Kong

Canada

United

Japan

Malaysia

Russia
Italy
South
Korea

States
Taiwan

Australia
Sweden

Switzerland

# Companies 3 2 6 1 4 2 1 14 5 1 2 1 2 19 1 1 1

# Companies 3 10 8 1 10 2 1 39 6 1 1 2 1 1

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

Source. Capital IQ
 Page 13

P/E (LTM) averages 10.0x: The average multiple for the 30 companies with positive earnings (and multiples under 100x)
is 10.0x LTM EPS (versus 11.0x last week), led Tencent Holdings Ltd (SEHK-700) 57.3x multiple (Figure 15). Ten of the
companies have P/E multiples under 10x. The median is just 13.7x.

P /E L T M (x)

70.0

60.0 57.3
54.7

50.0
44.0

40.0 37.5

29.7 29.9 30.6

30.0 27.1
23.2 24.1 24.5
21.0
20.0
14.4 15.1 15.1
11.3 12.6 12.7
A verage, 10.0 9.6 10.8 10.8
10.0 5.6
3.3 4.6
2.0 2.4 2.8 2.9 3.1
0.0
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
G ravity C o., Ltd

T he9 Limited

S handa Interactive E ntertainment Ltd.

Neteas e.com Inc.

S NAP Interactive, Inc.

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

G igaMedia Ltd.

S ohu.com Inc.

NetDragon W ebS oft, 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 (19), trading at an average multiple of 20.4x. On a geographic basis, the United States has
the most companies (39), trading at an average of 19.8x earnings (Figure 17). Ten of the companies are Canadian
(average 20.1x EPS).

Average P/E - By Country

Average P/E - By Exchange 40.0
33.6
40.0 36.8 35.0
35.0 30.0
30.0 33.6 32.3 25.0 28.1
24.1
25.0 21.0
(x)

24.1 20.0 20.1 19.8

22.6
(x)

20.0 21.0 20.4 15.0 16.9 13.7

15.0 15.1 11.3
11.4 11.3 9.6 10.0
10.0 5.6
5.6 5.0 4.6
4.6
5.0 2.0 0.0 0.0
0.0 0.0
Germany
Japan

Canada

United

China

Malaysia
Italy

South
Korea
States
Taiwan

Australia
Sweden

Switzerland
OTCBB
GTSM

NasdaqGM
TSE

SEHK

KOSE

NasdaqGS
CM

OM
XTRA

AMEX

TSX

KLSE

NYSE
ASX

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

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

Source. Capital IQ
 Page 14

UPCOMING EVENTS

E arnings Calendar
C ompany D ate & T ime Qu arter C onf C a ll D etails
I AC /I nterAc tiveC orp. (Na s da qG S :I AC I) W ednes da y, J uly 29, 2009 11:00 AM (E D T) Q 2 2009 NA
S hutterfly , Inc . (N a sda qG S : S F L Y ) W ednes da y, J uly 29, 2009 5:00 P M (E D T) Q 2 2009 913-312-0641
T heS treet. com, I nc. (Na s da qG M: TS C M) W ednes da y, J uly 29, 2009 4:30 P M (E D T) Q 2 2009 NA
Openwa ve S ys tems Inc . (Na s da qG S : O P W V ) T hursda y , J ul y 30, 2009 2: 00 P M (P DT ) Q 4 2009 877-941-8416
T ree. C om, Inc . (N a sda qG M :T R E E ) T hursda y , J ul y 30, 2009 11: 00 A M (E DT ) Q 2 2009 877-723-9523
L ook S ma rt, L td. (N asda qG M :L O O K ) M onda y, Augus t 03, 2009 5:00 P M (E D T) Q 2 2009 877-941-9205
V a lueClic k Inc . (N a sda qG S : V C L K ) T uesda y , Augus t 04, 2009 4:30 P M (E DT ) Q 2 2009 818-575-4677
P NI D igita l Media I nc. (T S X V :P N ) W ednes da y, Augus t 12, 2009 4: 30 P M (E D T) Q 3 2009 888-300-8196
Open T ext C orp. (Na s da qG S : O TE X ) T hursda y , Augus t 20, 2009 5:00 P M (E DT ) Q 4 2009 416-644-3415

Figure 18. Earnings Calendar

Source. Company reports
 Page 15

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 6.1 0.5 8 1.9 % 4 5.3 % 18 .6% 66 .0% -10 .6% -12. 0%
Actoz S of t C o., L td. KR W A 052 790 KO SE 18 2.5 26 ,30 0 -3.5 % 1 2.9 % 93 .4% 14 3.5% 2 28. 8% -26. 9%
AQ Inte ractive , Inc. JPY 3 838 TSE 3 3.9 59 ,50 0 8.2 % -19. 6% 28 .0% 94 .4% -59 .3% -62. 3%
As s ocia ted Media H oldings Inc. US D A S MH OT C P K 0 .6 0.0 1 -30. 0% -30. 0% 83 3.3% 18 0.0% -30 .0% -72. 0%
B igstring Corp. US D B S GC OT C B B 1 .9 0.0 4 -16. 7% 9.4% 15 5.5% 10 5.9% -62 .8% -65. 0%
B e tawave Corpora tion US D B W AV OT C B B 2 .3 0.0 8 -30. 4% 0.0% -2 7.3% -6 0.0 % -68 .0% -76. 5%
B e yond Commerce, Inc. US D B Y OC OT C B B 1 3.7 0.3 1 -12. 6% -57. 6% -7 8.4% -6 7.9 % -90 .7% -90. 8%
B right T hings plc GBP A IM:B G T AI M 6 .5 0.0 2 33.3 % 3 7.9 % 14 .3% 58 .7% 25.0 % -20. 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 38 7.3 3.6 5 65.9 % 1 43.3 % 21 4.7% 35 0.6% 34.2 % 14.4 %
C ha ngyou. com Limite d US D C Y OU N as da qG S 2,0 99. 4 3 8.1 7 -15. 7% -16. 1% 36 .3% NM NM -21. 1%
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 1,1 38. 4 44 5.0 0 -11. 2% 5.7% 10 7.9% 39 2.8% 4 50. 1% -14. 3%
C LIC K E R Inc. US D C L KZ OT C B B 0 .7 0.0 1 -25. 0% 2 33.3 % 14 3.2% -7 0.0 % -98 .9% -98. 9%
C ornerW orld C orporation US D CWR L OT C B B 3 .2 0.0 5 0.0 % -16. 7% -5 0.0% -8 7.8 % -87 .5% -93. 7%
C yberplex Inc. C AD T S X:CX TSX 10 2.9 1.7 2 11.0 % 0.0% 42 .1% 36 4.9% 2 44. 0% -13. 6%
D ADA S pA E UR C M :DA CM 14 4.7 6.2 8 4.9 % 1.2% 9 .3% -6.8% -42 .2% -49. 6%
D XN Holdings B hd MY R DXN KL SE 2 6.2 0.4 0 -5.9 % 3.9% 33 .3% 12 .7% -7. 0% -10. 1%
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 4 .9 0.0 7 88.6 % 1 00.0 % 28 8.2% 23 0.0% -17 .5% -34. 0%
D igitalT own, Inc. US D DG T W OT C B B 3 7.9 1.4 0 -30. 0% -31. 7% -4 0.4% -5 3.3 % -60 .0% -77. 0%
D olphin Digital Me dia, Inc. US D DP DM OT C B B 1 5.5 0.3 0 -9.1 % -43. 4% -4 0.1% -5 3.8 % NM -73. 5%
E olith C o. L td. KR W A 041 060 KO SE 4 5.8 78 5.0 0 -0.6 % -1.9 % -6 .5% 53 .9% -8. 7% -32. 3%
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 4.2 0.9 1 2.2 % 1 5.2 % 16 0.0% 19 3.5% -46 .2% -49. 4%
F rogs te r Interactive P icture s AG E UR FR G XT R A 4 2.8 1 2.8 0 4.9 % 3 4.7 % 36 .2% 16 3.9% 1 53. 5% 0.0 %
G a ma nia Digital E ntertainment C o., L td. TWD 6 180 GT S M 27 8.6 6 0.3 0 -10. 0% -2.0 % 76 .8% 17 9.8% 1 36. 5% -12. 4%
G a me On C o L td. JPY 3 812 TSE 10 7.9 106 ,40 0 0.4 % -0.8 % 9 .9% -1 8.2 % -31 .8% -34. 9%
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 1,8 38. 4 8.1 4 5.0 % -7.5 % -4 .5% 31 .7% -11 .2% -24. 5%
G iga Media Ltd. US D G IG M N as da qG S 27 2.6 5.0 0 -2.2 % -13. 9% -2 3.2% -2 5.1 % -58 .9% -62. 7%
G ravity C o., L td US D G RV Y N as da qG M 4 0.6 1.4 6 -8.2 % 3 3.9 % 49 .0% 89 .6% 36.4 % -26. 6%
G ree, Inc. JPY T S E :36 32 TSE 1,6 10. 2 6 ,86 0 1.2 % -2.1 % 19 .9% 18 .1% NM -11. 0%
G ungH o O nline E ntertainment, Inc. JPY 3 765 OS E 26 1.7 217 ,80 0 3.7 % -4.3 % 56 .7% 12 1.1% -9. 3% -22. 2%
H anbitS oft, Inc. KR W A 047 080 KO SE 7 9.1 4 ,48 5 -3.5 % -0.1 % 10 .1% 44 .7% 6.8 % -32. 5%
IAC /InterActiveC orp. US D I ACI N as da qG S 2,7 24. 0 1 8.0 5 4.5 % 1 3.3 % 13 .1% 19 .5% -47 .7% -64. 3%
IAS E nergy, Inc. US D I AS C .A OT C B B 1 0.5 0.1 5 36.4 % -25. 0% -4 2.3% 61 4.3% -34 .8% -50. 0%
is ee media Inc. C AD IEE T S XV 3 .8 0.0 8 -11. 1% -20. 0% -2 0.0% -1 1.1 % -68 .0% -68. 0%
J umbuck E ntertainment P ty Ltd. AU D A S X:J M B AS X 1 4.0 0.3 5 -7.9 % -10. 3% -2 4.7% -2 7.1 % -37 .5% -43. 5%
K A B Dis tribution Inc. C AD T S X:K AB TSX 8 1.5 1 0.0 % 0.0% 6 .8% 50 .0% -16 .0% -30. 8%
K ings oft Co. Ltd. HKD 3 888 S E HK 1,0 89. 9 8 12.4 % 4 2.0 % 12 7.5% 19 2.5% 1 30. 9% 0.0 %
Lingo Media Corporation C AD T S XV :LM T S XV 1 2.7 1.1 0 0.0 % 1 0.0 % 22 .2% 12 .2% -38 .5% -42. 7%
Live World Inc. US D L VW D OT C P K 1 .1 0.0 4 -17. 8% -38. 3% -6 6.4% -5 3.8 % -79 .4% -85. 2%
LookS mart, Ltd. US D L OOK N as da qG M 2 1.0 1.2 3 9.8 % 7.9% -8 .2% -1 0.2 % -59 .0% -63. 5%
M agnitude Information S ys tems Inc. US D M AG Y OT C B B 3 .4 0.0 1 -16. 7% -37. 5% -5 0.0% -7 4.1 % -62 .5% -75. 0%
M ixi, Inc. JPY 2 121 TSE 1,1 04. 4 68 5,00 0.0 0 -0.1 % 2 2.3 % 46 .1% 40 .1% -2. 0% -25. 6%
M ode rn Times G roup Mtg AB SE K MT G B OM 2,1 93. 9 24 7.5 0 4.0 % 1 7.3 % 17 .3% 69 .2% -27 .0% -36. 6%
M OK O.mobi L imited AU D MKB AS X 5 .4 0.0 8 25.0 % 0.0% -1 1.8% 50 .0% 82.9 % -25. 0%
M yriad G roup AG C HF MYR N SWX 8 1.5 4.1 0 -9.3 % -17. 8% -1 0.5% -2 4.8 % -59 .0% -59. 0%
N E OW IZ G ames C orpora tion KR W A 095 660 KO SE 55 0.7 3 2,50 0.0 0 1.9 % -3.6 % 21 .7% 18 1.4% 1 54. 9% -22. 6%
N etDragon W ebS oft, Inc. HKD 7 77 S E HK 42 1.5 6.1 8 2.7 % 2 1.9 % 37 .3% 13 3.2% -33 .5% -36. 9%
N ete as e.com I nc. US D NT E S N as da qG S 5,2 90. 0 4 1.1 9 0.5 % 9.3% 38 .9% 12 0.4% 78.2 % -8.1 %
N euLion Incorporate d C AD T S X:NL N TSX 8 9.7 0.8 5 -6.6 % 1 3.3 % 63 .5% 14 6.4% NM -22. 0%
N eXplore Corpora tion US D N XP C OT C P K 3 9.0 0.7 0 55.6 % 1 4.8 % 24 .8% -6.7% -12 .5% -51. 7%
N gi G roup Inc. JPY 2 497 TSE 4 1.8 3 2,20 0.0 0 -1.4 % -13. 4% -1 5.3% -2 4.7 % -60 .1% -74. 7%
N orthgate Te chnologies L imited IN R 5 900 57 BS E 2 7.8 3 8.3 5 6.5 % -4.2 % -7 .5% -6.3% -87 .0% -87. 8%
Open T e xt Corp. US D O TE X N as da qG S 1,9 59. 2 3 7.2 3 1.1 % 2.4% 11 .5% 13 .2% 20.8 % -4.8 %
Openwave S ys tems Inc. US D O PW V N as da qG S 24 5.7 2.9 5 0.7 % 2 6.1 % 15 4.3% 27 3.4% 1 15. 3% -3.3 %
P e rfect W orld C o., Ltd. US D P W RD N as da qG S 1,7 21. 3 3 5.3 9 1.1 % 8.6% 10 9.7% 13 7.2% 33.5 % -2.0 %
P N I D igital Media Inc. C AD T S XV :P N T S XV 4 6.8 1.4 8 -1.3 % NM -1 .3% -1 2.4 % -56 .0% -59. 1%
Quepa s a C orp. US D Q PSA OT C B B 1 2.7 1.0 0 5.3 % 4 2.9 % 20 .5% -4 1.2 % -58 .7% -71. 1%
OA O R B C Information S ys tems US D R BC I R TS 15 9.5 1.1 5 53.3 % 1 5.0 % 76 .9% 27 4.0% -84 .9% -85. 4%
S handa Interactive E ntertainme nt L td. US D S NDA N as da qG S 3,4 98. 0 5 2.3 9 -13. 0% -13. 6% 13 .6% 77 .6% 91.6 % -19. 4%
S hutte rf ly, Inc. US D S F LY N as da qG S 37 7.8 1 5.0 1 6.4 % -0.4 % 50 .9% 12 6.7% 74.7 % -6.7 %
S K C ommunications Co., Ltd. KR W A 066 270 KO SE 32 1.2 9,52 0.0 0 -0.3 % -4.7 % 5 .8% 29 .7% -33 .2% -37. 4%
S N AP Inte ra ctive , Inc. US D S T VI OT C B B 2 .2 0 -55. 6% -69. 2% -6 9.2% -8 0.0 % -63 .6% -81. 5%
S N M G lobal H oldings US D S NM N OT C P K 0 .0 0.0 0 1 50. 0% -42. 9% -2 0.0% 40 0.0% -99 .7% -99. 8%
S ocia l Media V e nures , Inc. US D S MVI OT C P K 0 .0 0.3 0 -6.3 % 29 00. 0% 290 0.0 % -7 7.4 % 20.0 % -94. 0%
S ocia lwis e, Inc. US D S CL W OT C B B 3 3.4 0.7 7 -3.7 % 1 1.6 % 75 .0% 40 .0% -69 .2% -71. 5%
S ohu. com Inc. US D S OH U N as da qG S 2,2 60. 3 5 9.0 7 -9.0 % -12. 8% 19 .7% 41 .0% -25 .4% -32. 9%
S park N etworks , Inc. US D L OV AM E X 4 9.4 2 -0.8 % -4.0 % 4 .8% -2.8% -41 .6% -46. 2%
S pectrumDN A, Inc. US D S P XA OT C B B 6 .8 0 -6.7 % -39. 1% -3 3.3% 40 .0% NM -76. 7%
T encent Holdings L td. HKD 7 00 S E HK 23, 894 .9 10 3 -3.7 % 1 0.3 % 57 .5% 13 1.9% 43.0 % -4.0 %
T he P arent C ompany US D K IDS .Q OT C P K 0 .4 0.0 2 -46. 4% -40. 0% 20 .0% -5 0.0 % -99 .3% -99. 3%
T he 9 L imited US D NC TY N as da qG S 21 3.0 8.3 5 -5.1 % -21. 7% -9 .8% -4 7.8 % -63 .3% -67. 5%
T he S treet.com, Inc. US D T S CM N as da qG M 6 3.7 2.0 8 4.5 % -3.7 % -1 1.9% -2 9.3 % -67 .7% -71. 7%
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 11 6.2 1 0.7 6 7.8 % 1 1.5 % 87 .5% 13 3.9% NM -17. 7%
U nis erve C ommunications Corp. C AD T S XV :U S S T S XV 1 .6 0.0 7 -30. 0% 4 0.0 % 75 .0% -1 2.5 % -65 .0% -72. 0%
U nited Online Inc. US D UNTD N as da qG S 74 8.0 8.9 5 10.0 % 3 6.6 % 83 .8% 40 .7% -18 .8% -26. 9%
U OMO Media , Inc US D U OMO OT C B B 9 .4 0.1 1 0.0 % -24. 1% 37 .5% 37 .5% -72 .5% -89. 6%
V a lueC lick Inc. US D V CL K N as da qG S 1,0 17. 5 1 1.7 0 3.0 % -0.2 % 20 .2% 77 .5% 3.7 % -16. 4%
V O IS , Inc. US D V OIS OT C B B 5 .0 0.0 1 0.0 % -33. 3% 10 0.0% -2 0.0 % -85 .3% -85. 9%
W ebze n Inc. US D W ZE N N as da qG M 4 2.4 3.5 8 1.1 % 3.5% 46 .1% 13 8.7% 33.1 % -23. 5%
W iz za rd S of twa re Corpora tion US D W ZE AM E X 2 3.4 0.4 9 2.1 % -3.9 % -7 .5% -3 3.0 % -71 .6% -72. 2%
W orlds .com Inc. US D W DDD OT C B B 5 .8 0.1 1 -21. 4% -8.3 % -3 5.3% -4 5.0 % -68 .6% -71. 1%
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 0.0 % 1 50.0 % 11 .1% -2 0.0 % -83 .3% -83. 3%
XIN G AG E UR O 1B C XT R A 22 5.0 3 0.0 0 5.3 % -2.6 % 3 .8% -3.2% -0. 6% -16. 6%
Y e dangOnline Corp. KR W A 052 770 KO SE 10 1.8 8 ,06 0 1.5 % -3.7 % -5 .1% 7 .8% -15 .4% -35. 0%
Y nk K orea Inc. KR W A 023 770 KO SE 2 4.3 5 ,66 0 -4.4 % -18. 6% 22 .0% 43 .7% -42 .8% -54. 4%
H igh 1 50. 0% 29 00. 0% 290 0.0 % 65 0.0% 4 50. 1% 14.4 %
Low -90. 0% -90. 0% -9 0.0% -9 8.0 % -99 .7% -99. 8%
A vera ge 665.4 -0. 5% 43.8% 73.1% 64.7% -10.7% -48.2%
M edian 0.0 % -0.1 % 15 .8% 29 .7% -34 .2% -44. 9%

Figure 19. Price Performance

Source. Capital IQ
 Page 16

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 16. 1 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 82. 5 1.6 x - 7.6 x - 27 .1x - 3 .1x
AQ Inte ractive , Inc. G aming J a pan TSE 3 838 33. 9 0.1 x - 1.2 x - - - 0 .5x
As s ocia ted Media Holdings Inc. Mobile U nite d S tates OT C P K AS MH 0. 6 15.6 x - - - - - -
B igstring Corp. Ins ta nt Mes s aging U nite d S tates OT C B B BS G C 1. 9 44.1 x - - - - - -
B e tawave Corpora tion Me dia U nite d S tates OT C B B B WA V 2. 3 - - - - - - 0 .3x
B e yond Commerce, Inc. S ocia l Ne tworking U nite d S tates OT C B B BYO C 13. 7 2.6 x - - - - - -
B right T hings plc S ocia l Ne tworking U nite d K ingdom AIM AIM:B G T 6. 5 23.6 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 3 87. 3 1.0 x 1.1x 13.0 x 1 6.0 x - 3 8.4 x -
C ha ngyou. com Limite d G aming C hina N as da qG S CY OU 2,0 99. 4 8.6 x 6.5x 14.2 x 1 1.2 x 14 .4x 1 3.8 x 1 3.0x
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 1,1 38. 4 19.1 x - 34.1 x - 44 .0x - 1 6.5x
C LIC K E R Inc. D irect Marketing U nite d S tates OT C B B C LK Z 0. 7 0.3 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 1 02. 9 1.3 x 1.0x 12.7 x 8.3x 9. 6x 1 1.2 x 9 .5x
D AD A S pA S ocia l Ne tworking Italy CM CM:DA 1 44. 7 0.8 x - 5.6 x - 24 .1x - -
D XN Holdings B hd S ocia l Ne tworking Malays ia KL SE D XN 26. 2 0.5 x - 3.7 x - 4. 6x - 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 4. 9 8.8 x - - - - - -
D igitalT own, Inc. S ocia l Ne tworking U nite d S tates OT C B B D G TW 37. 9 - - - - - - -
D olphin D igital Me dia, Inc. S ocia l Ne tworking U nite d S tates OT C B B DP DM 15. 5 21.3 x - - - - - -
E olith C o. L td. G aming S outh K ore a K OS E A 041 060 45. 8 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 44. 2 6.8 x 4.5x - - - - 4 .2x
F rogs te r Interactive P icture s AG G aming G ermany XT R A F RG 42. 8 12.5 x - - - - - 6 .3x
G a ma nia D igital E ntertainment C o., L td. G aming T a iwan GTS M 6 180 2 78. 6 2.0 x - 12.2 x - 29 .7x - 3 .6x
G a me On C o L td. G aming J a pan TSE 3 812 1 07. 9 0.6 x - 2.5 x - 12 .6x - 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 1,8 38. 4 - - - - 2. 0x 1 3.5 x 0 .4x
G iga Media Ltd. G aming T a iwan N as da qG S G IG M 2 72. 6 1.1 x 1.0x - 5.1x 10 .8x 1 0.1 x 2 .3x
G ravity C o., L td G aming S outh K ore a N as da qG M GR VY 40. 6 - - - - 0. 0x - 0 .0x
G ree, Inc. S ocia l Ne tworking J a pan TSE T S E :3 632 1,6 10. 2 49.6 x - - - - - 1 9.9x
G ungH o O nline E ntertainment, Inc. Me dia J a pan OS E 3 765 2 61. 7 2.2 x - 12.0 x - - - 3 7.0x
H anbitS of t, Inc. G aming S outh K ore a K OS E A 047 080 79. 1 1.1 x - - - - - 2 .4x
IAC /InterActiveC orp. Me dia U nite d S tates N as da qG S IAC I 2,7 24. 0 0.6 x 0.6x 19.7 x 5.4x 23 .2x 3 7.1 x 1 .2x
IAS E nergy, Inc. V ide o C anada OT C B B IA S C .A 10. 5 - - - - - - -
is ee media Inc. C ontent C anada T S XV IE E 3. 8 1.8 x - - - - - 3 .1x
J umbuck E ntertainment P ty Ltd. S ocia l Ne tworking A us tralia AS X AS X:J MB 14. 0 0.6 x - 1.6 x - 5. 6x - 1 .4x
K A B D is tribution Inc. C ontent C anada TSX TS X:K AB 81. 5 1.1 x 1.1x 9.6 x 5.9x - - -
K ings oft Co. Ltd. G aming C hina S E HK 3 888 1,0 89. 9 8.3 x - 20.7 x - 24 .5x - 5 .9x
Lingo Media Corporation Le arning C anada T S XV TS XV :LM 12. 7 12.1 x - - - - - 1 2.8x
Live World Inc. S ocia l Ne tworking U nite d S tates OT C P K LV W D 1. 1 0.0 x - - - - - 0 .5x
LookS mart, Ltd. D irect Marketing U nite d S tates N as da qG M L OOK 21. 0 - - - - - - 0 .8x
Magnitude Information S ys tems Inc. S ocia l Ne tworking U nite d S tates OT C B B MAG Y 3. 4 - - - - - - -
Mixi, Inc. S ocia l Ne tworking J a pan TSE 2 121 1,1 04. 4 7.8 x - 22.0 x - 54 .7x - 8 .1x
Mode rn Times G roup Mtg AB Me dia S we den OM MT G B 2,1 93. 9 1.5 x 1.4x 9.6 x 1 0.8 x 11 .3x 1 2.3 x -
MOK O.mobi L imited S ocia l Ne tworking A us tralia AS X MK B 5. 4 3.5 x - - - - - 3 .9x
Myriad G roup AG Mobile S witz erland SWX MY R N 81. 5 2.2 x - - - - - 3 .6x
N E OW IZ G ames C orpora tion G aming S outh K ore a K OS E A 095 660 5 50. 7 2.7 x - 10.1 x - 29 .9x - 1 5.1x
N etD ragon W ebS oft, Inc. G aming C hina S E HK 777 4 21. 5 3.4 x - 8.5 x - 15 .1x - 2 .3x
N ete as e.com I nc. G aming C hina N as da qG S NT E S 5,2 90. 0 - - - - 3. 1x 1 8.1 x 0 .9x
N euLion Incorporate d V ide o C anada TSX T S X:N LN 89. 7 4.2 x 4.3x - - - - 5 .0x
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 41. 8 0.0 x - 0.1 x - - - 0 .9x
N orthgate Te chnologies L imited D irect Marketing India BS E 59 005 7 27. 8 0.2 x - - - - - -
Open T e xt Corp. C ollaboration C anada N as da qG S O TE X 1,9 59. 2 2.6 x 2.4x 10.2 x 7.9x 30 .6x 1 3.7 x -
Openwave S ys tems Inc. Mobile U nite d S tates N as da qG S OP W V 2 45. 7 0.7 x 0.8x - 7.8x - 4 6.8 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 21. 3 0.4 x 2.1x 0.8 x 4.0x 2. 9x 1 3.5 x 1 .1x
P N I D igital Media Inc. D igital Imaging C anada T S XV T S XV :P N 46. 8 2.3 x 1.6x - 4.6x - - 1 8.6x
Quepa s a C orp. S ocia l Ne tworking U nite d S tates OT C B B QP S A 12. 7 - - - - - - -
OA O R B C Information S ys tems Me dia R us s ia R TS R B CI 1 59. 5 0.0 x - 0.3 x - - - -
S handa Interactive E ntertainme nt L td. G aming C hina N as da qG S S NDA 3,4 98. 0 0.0 x 0.2x 0.1 x 0.4x 2. 8x 1 4.6 x 1 .1x
S hutte rf ly, Inc. D igital Imaging U nite d S tates N as da qG S S FL Y 3 77. 8 1.5 x 1.4x 11.0 x 8.4x - - 2 .2x
S K C ommunications Co., Ltd. S e arch S outh K ore a K OS E A 066 270 3 21. 2 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 2. 2 0.2 x - 0.7 x - 3. 3x - 1 .3x
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 33. 4 - - - - - - 4 3.4x
S ohu. com Inc. G aming C hina N as da qG S S OH U 2,2 60. 3 4.1 x 3.6x 9.4 x 8.2x 12 .7x 1 6.3 x 6 .1x
S park N etworks , Inc. S ocia l Ne tworking U nite d S tates AME X L OV 49. 4 0.9 x - 4.2 x - 15 .1x - -
S pectrumDN A, Inc. Me dia U nite d S tates OT C B B S P XA 6. 8 - - - - - - 1 7.8x
T encent Holdings L td. P orta l C hina S E HK 700 23,8 94. 9 21.7 x - 44.9 x - 57 .3x - 2 3.9x
T he P arent C ompany Me dia U nite d S tates OT C P K K ID S .Q 0. 4 0.2 x 0.2x - 1 2.9 x - - -
T he 9 L imited G aming C hina N as da qG S NC T Y 2 13. 0 - - - - 2. 4x 1 1.5 x 0 .1x
T he S treet.com, Inc. Me dia U nite d S tates N as da qG M TSCM 63. 7 - - - - - - 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 16. 2 0.5 x 0.4x - 5.7x - - 1 .5x
U nis erve C ommunications Corp. S ocia l Ne tworking C anada T S XV T S XV :U S S 1. 6 0.2 x - - - - - -
U nited Online Inc. Me dia U nite d S tates N as da qG S U N TD 7 48. 0 1.3 x 1.0x 5.8 x 4.3x - 1 1.9 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 1,0 17. 5 1.5 x 1.7x 8.7 x 6.7x - 1 8.6 x 8 .3x
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. 4 - - - - - - 0 .0x
W iz za rd S of twa re Corpora tion P odcas ting U nite d S tates AME X W ZE 23. 4 4.4 x - - - - - -
W orlds .com Inc. C ontent U nite d S tates OT C B B W DD D 5. 8 - - - - 37 .5x - -
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 25. 0 3.2 x - 10.2 x - 21 .0x - 7 .0x
Y e dangOnline Corp. G aming S outh K ore a K OS E A 052 770 1 01. 8 2.0 x - 9.4 x - 10 .8x - 3 .7x
Y nk K orea Inc. G aming S outh K ore a K OS E A 023 770 24. 3 3.1 x - - - - - 1 .1x
H igh 23,8 94. 9 49.6 x 6.5x 44.9 x 1 6.0 x 57 .3x 4 6.8 x 4 3.4x
Low 0. 0 0.0 x 0.2x 0.1 x 0.4x 0. 0x 1 0.1 x 0 .0x
A vera ge 665. 4 5.4x 1.8x 10.7x 7.4x 18.1x 18.8x 6.9x
Median 42. 6 2.0 x 1.3x 9.5 x 7.2x 13 .5x 1 3.7 x 3 .6x

Figure 20. Valuation Comparison

Source. Capital IQ
 Page 17

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 42, 326.7 China 4,232. 7 C hina 3, 841. 3 C hina 1,782. 0 C hina 48. 0%
C anada 10 U nited S tates 5, 665.5 S weden 2,193. 9 U nited S ta tes 3, 791. 6 S weden 283. 7 Aus tral ia 37. 2%
C hina 10 J a pan 3, 160.0 Ta iwa n 563. 2 S weden 1, 846. 6 U nited S ta tes 241. 2 T aiwa n 36. 3%
S outh K orea 8 C anada 2, 318.1 Japan 526. 7 C a na da 999. 4 C a na da 196. 7 G ermany 31. 2%
J a pa n 6 S weden 2, 193.9 Hong K ong 387. 3 S outh K orea 672. 4 J apan 108. 8 J a pa n 21. 9%
T a iwa n 3 T a iwa n 1, 689.7 Ca na da 231. 8 J a pa n 499. 9 S outh K orea 91. 4 S weden 15. 4%
A ustra lia 2 S outh K orea 1, 364.2 S outh K orea 170. 5 H ong K ong 389. 9 T a iwan 52. 4 I ta ly 14. 6%
G ermany 2 H ong K ong 387.3 R us sia 159. 5 T aiwan 365. 8 I taly 35. 0 M a la ys ia 13. 8%
S witz erla nd 1 G erma ny 267.8 United S tates 145. 3 I ta ly 239. 0 H ong K ong 30. 8 R uss ia 13. 1%
H ong K ong 1 R uss ia 159.5 Ita ly 144. 7 R uss ia 154. 2 R uss ia 20. 1 H ong K ong 7.9%
F inla nd 1 I ta ly 144.7 G erma ny 133. 9 I ndia 116. 3 M alays ia 10. 9 S outh K orea 6.4%
I ta ly 1 S witz erla nd 81.5 S witzerland 81. 5 M a la ys ia 78. 6 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 C anada -13.3%
I ndia 1 I ndia 27.8 India 27. 8 S witz erla nd 40. 0 S witz erland 0. 8 U nited S ta tes -14.8%
S weden 1 M alays ia 26.2 Malay sia 26. 2 Aus tra l ia 15. 9 N orway -1. 1 I ndia -23.5%
R us sia 1 Aus tra lia 19.4 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 6.5 United K ingdom 6. 5 N orwa y 2. 2 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 59,889.9 G rand Total 665.4 G rand T otal 13,116.6 G r and T otal 2,821.6 G rand T otal 6.8%

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 25, 406.4 S E HK 8,468. 8 OM 1, 846. 6 N a sdaqG S 1,694. 2 S EHK 42. 7%

N as da qG S 14 N asdaqG S 22, 814.1 OM 2,193. 9 N a sda qG S 484. 3 S E HK 669. 5 AS X 37. 2%
OT C P K 11 TSE 2, 898.3 NY S E 1,838. 4 S E HK 473. 4 OM 283. 7 GT SM 36. 3%
K OS E 6 OM 2, 193.9 Na s daqG S 1,629. 6 CM 239. 0 TSE 89. 4 XT R A 31. 2%
TSE 5 NYS E 1, 838.4 G TS M 708. 5 NYS E 219. 0 K OS E 79. 3 N asdaqG S 30. 2%
N as da qG M 5 GTS M 1, 417.1 TS E 579. 7 R TS 154. 2 GT S M 52. 4 TSE 22. 7%
TSX 4 K OS E 1, 281.2 OS E 261. 7 BSE 116. 3 CM 35. 0 OS E 18. 0%
T S XV 4 TSX 318.3 K OS E 213. 5 OS E 108. 1 R TS 20. 1 OM 15. 4%
S E HK 3 N asdaqG M 283.9 RT S 159. 5 K OS E 100. 5 OS E 19. 4 CM 14. 6%
A ME X 2 XT R A 267.8 CM 144. 7 GT S M 91. 1 K LS E 10. 9 K LS E 13. 8%
ASX 2 OS E 261.7 XT R A 133. 9 N a sda qG M 82. 5 XTR A 10. 6 R TS 13. 1%
XT R A 2 OT CB B 188.1 SWX 81. 5 K LS E 78. 6 AM E X 6. 4 K OS E 4.4%
GT SM 2 R TS 159.5 TS X 79. 6 TSE 78. 4 AS X 3. 0 N asdaqG M 3.1%
S WX 1 CM 144.7 Na s daqG M 56. 8 TSX 43. 6 SWX 0. 8 SWX 1.9%
H LS E 1 SWX 81.5 HL S E 51. 1 SWX 40. 0 NYS E 0. 0 T S XV 1.3%
CM 1 AM E X 72.8 AME X 36. 4 AM E X 29. 9 OT CN O -1. 1 TSX -14.3%
B SE 1 OT CP K 66.3 BS E 27. 8 XT RA 28. 6 TSX -1. 8 BSE -23.5%
NYS E 1 T S XV 64.9 KLS E 26. 2 OT CP K 16. 6 AI M -1. 9 O T CB B -32.0%
OS E 1 H LS E 51.1 TS X V 16. 2 T S XV 11. 7 N a sdaqG M -3. 0 AM E X -36.4%
A IM 1 BS E 27.8 O TC B B 9. 9 AS X 8. 0 T S XV -6. 2 O T CP K -41.3%
OM 1 KLS E 26.2 AS X 9. 7 HLS E 6. 0 HLS E -15. 6 O T CN O -50.6%
R TS 1 AS X 19.4 AIM 6. 5 OT CN O 2. 2 BSE -27. 3 NYS E #DI V /0!
K LS E 1 AI M 6.5 O TC P K 6. 0 OT CB B 1. 7 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 -62. 2 H LS E #DI V /0!

G rand To tal 90 G rand T otal 59,889.9 G rand Total 665.4 G rand T otal 154.3 G r and T otal 2,821.6 G rand T otal 6.8%

Figure 22. Comparison by Exchange

Source. Capital IQ
 Page 18

Fin an c in g - L as t Th ree M on ths (U S $ m)

Mo nth Co mpan y N ame C ou ntr y An gel/S e ed Debt finan c in g P IP E S eries A S eries B S eries C S eries D G rand T otal
May-09 Facebook USA 200. 0 200. 0
One Net Entertainment China 10. 0 10. 0 20.0
Cyberplex Canada 12. 9 12.9
Peer39 USA 10. 5 10.5
OpenX UK 10. 0 10.0
Intent Media USA 9. 0 9. 0
Imeem USA 8. 8 8. 8
EveryZing USA 8.3 8. 3
ConnectEdu USA 8.2 8. 2
BlogHer Inc. USA 7.0 7. 0
WonderHill USA 7. 0 7. 0
Gist USA 6. 8 6. 8
Fuhu Inc. USA 6.3 6. 3
Azuki Systems USA 6. 0 6. 0
I Love Rewards Canada 5.9 5. 9
DocuSign USA 5. 0 5. 0
TimeBridge USA 5.0 5. 0
OLX USA 5.0 5. 0
Mediale ts USA 4. 0 4. 0
Resonate Networks USA 2. 0 2. 0
VoxPop USA 1.5 1. 5
Mo'Minis Israel 1. 5 1. 5
Loop'd Network USA 0. 8 0. 8
May-09 T otal 13.6 10. 0 22.9 32.3 26. 9 40.8 205. 0 351.3

J u n -09 S ug ar Inc . USA 16. 0 16.0

Tu mri USA 15. 0 15.0
Boku USA 13.0 13.0
Wimba USA 12. 0 12.0
G rab N etwo rks USA 12. 0 12.0
AdChina China 10.0 10.0
Goojet SAS France 8.5 8. 5
AdMeld Inc. USA 8.0 8. 0
beeTV USA 8.0 8. 0
Nokeena USA 6.5 6. 5
Bubble Motion USA 6. 0 6. 0
Sense N etworks USA 6.0 6. 0
Zoosk USA 6.0 6. 0
Gather USA 5. 3 5. 3
MojoPages USA 5. 0 5. 0
Taomee China 5. 0 5. 0
Animoto USA 4.4 4. 4
GameGround Israel 4. 1 4. 1
RingRevenue USA 3. 5 3. 5
Crowdcast USA 3. 0 3. 0
YuMe USA 2. 9 2. 9
eRepublik Spain 2. 8 2. 8
Newser LLC USA 2. 5 2. 5
ClickFuel USA 2. 5 2. 5
Inigral USA 2. 4 2. 4
AdEx Media USA 2. 3 2. 3
GROU.PS USA 2. 1 2. 1
my6 sense Israel 2. 0 2. 0
OneTXT USA 2. 0 2. 0
Yapta USA 2.0 2. 0
I Love Rewards Canada 1.8 1. 8
Cliqset USA 1. 5 1. 5
Glubble Netherlands 1.0 1. 0
Picaboo USA 1. 0 1. 0
TodaCell Israel 1. 0 1. 0
AdWhirl USA 1. 0 1. 0
Liq uidPlanner USA 1. 0 1. 0
MashLogic USA 0. 5 0. 5
J u n -09 T otal 45.3 15.3 28.5 67. 8 34.0 5.3 196.1
 Page 19

Mo nth Co mpany N ame C ou ntry An gel/S eed D ebt finan cin g PIP E S eries A S eries B S eries C S eries D G rand T otal

J ul-09 P andora Media US A 35. 0 35.0

Ko ntera L td. Is rael 15.5 15.5
Ning US A 15.0 15.0
QuickP lay Media C anada 12.0 12.0
Caus es US A 10.0 10.0
Outs park US A 8.3 8. 3
Co nn ec tE du US A 8.2 8. 2
Ac quia, In c US A 8.0 8. 0
S BNation US A 8. 0 8. 0
Metavers um German y 6.3 6. 3
OP E N S ports n etwork US A 4. 0 4. 0
S tyleCas ter US A 4. 0 4. 0
Nexage US A 4. 0 4. 0
TweetD ec k UK 3. 2 3. 2
P ro ton Media US A 2. 5 2. 5
Alo qa German y 1. 5 1. 5
Lat49 C anada 1. 5 1. 5
Tributes . c om US A 1.2 1. 2
Co Tweet US A 1. 1 1. 1
Clikth ro ugh US A 1. 0 1. 0
P eople Capital US A 0.5 0. 5
J ul-09 T otal 46.2 10.1 22. 0 51. 5 27.0 156. 7

G ran d To tal 105.0 10. 0 38. 2 70.9 116.6 126.3 237. 3 704. 2

Figure 23. Financing, Last Three Months

Source. Company reports
 Page 20

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 c qu ia, Inc . U nited S ta tes www.acquia.com Acqui a , Inc ., a n open source software compa ny, prov ides products , serv ices , a nd tec hnic a l s upport for the open sourc e Drupa l soc ia l
publishi ng s ys tem. T he compa ny offers Ac quia D rupa l, a pa ck a ged dis tribution of the open sourc e D rupal soc ia l publi shing sy stem tha t is
used by W eb developers to build c ommunity W ebsites, a s well as deliver v a rious W eb applic ations, s uc h as s ingle or multi-us er blogs, wikis ,
community network s , digital media porta ls , a nd ecommerce; Ac quia N etwork, whic h offers s ubs cription-ba sed a cces s to technica l support
a nd remote network s ervic es for the dep loyment and operation of Drupa l W ebsites ; a nd Ac quia S ea rch, a tool to s ea rc h the content of a s ite.
It a lso provides commercia l grade s upport for the open source Drupal social publishing sy s tem, inc luding modules , themes , and cus tom
code. The compa ny was formerly k nown as Aquia , I nc. and cha nge d its na me to Acquia, I nc. in D ecember 2007. Acquia , Inc . wa s founded in
2007 and is bas ed in Andov er, Ma s sac hus etts.

A dL ink Interne t Media A G
A lo qa
G erma ny www.adlink.net AdL IN K Internet Media AG , through its s ubsidia ries , provides digital marketing solutions in E urope a nd interna tionally . The c ompany
specializ es in dis pla y , a ffiliate, permis s ion, direct, a nd doma in ma rketing. I ts D is pla y Mark eting segment provides online, direc t a nd dia logue-
based, and permiss ion/email ma rketing solutions. This s egment’s portfolio c omprises 4, 000 Web s ites with advertis ing env ironment for
regiona l, na tional, a nd internationa l c ampa igns. T he c ompa ny’s Affilia te Mark eting s egment opera tes as a brok er between a dvertis ers and
W eb s ite publis hers. This s egment a lso offers profess iona l cons ulta tion, promotion options, a nd works hops. A dLIN K I nternet Media ’s
Doma in Ma rk eting segment operates a trading platform for the doma in ma rket, a s wel l as a cts as a brok er between domain owners a nd
a dvertisers . T he c ompa ny was formerl y known as AdLI NK I nternet M edia G mbH E urope and cha nged its na me to AdL I NK Internet M edia AG
in 2000. AdLIN K I nternet Media wa s founded i n 1996 and is he a dquartered in M ontaba ur, G erma ny . AdLIN K Internet Media AG is a
subs idiary of U nited I nternet AG .
G erma ny www.aloqa.com Aloqa G mbH prov ides a mobile s ervice tha t notifies interes ting pla ces , events , a nd F ac ebook friends in real time. I t s upports v arious pos ition-
finding proc ess es, suc h as cell ID , G P S , W LAN , and G S M fingerprinting; a nd enables applica tions and s ervic es to tra ck us er location in rea l
time for moving or s ta tiona ry objec ts . Th e c ompa ny s erves publishers , a dv ertis ers, mobile operators , and developers . Aloqa G mbH wa s
founded in 2007 a nd is ba s ed in Munic h, G ermany with an a dditiona l loc ation in P a lo Alto, C a lifornia .

C likthrough U nited S ta tes www.clikthrough.com C lik thro ugh’s interac tive media tec hnology mak es videos interac tive a nd cha nges videos into online points of s a le to a cc ess un ta pped
revenue.
C onn ectE du U nited S ta tes www.connectedu.net C onnec tE du, Inc., a technology c ompa ny, prov ides W eb-ba s ed s olution s to na viga te e duca tion a nd employment tra nsitions. It offers
C onnec t! , a W eb-ba s ed s olution tha t provides users with information a nd guida nce in curric ulum, co llege, a nd c areer pl a nning, a s well as
online tools and resourc es to nav iga te their high sc hool, c ollege, a nd career life c ycles; a nd P rep Hea dQ uarters, a s et of I nternet-based tool s
to enha nc e high school guidance, and make college a nd ca reer prepa ra ti on. The company s erves s tudents , parents, guida nce couns elors,
a dmiss ion officers , tra ns fer a dvisors , enrollment ma nagers, and employers . I t ha s strategic partners hips with Na tional C ollegia te Athleti c
Ass ocia tion; a al S olutions; C ouncil of N orth C entral Two Y ear C olle ges; M arcia B renner Ass ociates ; Ma ine S tate G E AR UP ;
W eidenha mmer; S k y wa rd; C o mputer M a na gement Tec hnologies ; S chools O P E N , L.L . C .; S chool Information S ys tems , Inc . ; and S oftwa re
Tec hnology, Inc . C onnectE du, Inc. was founded in 2002 a nd is ba s ed in B oston, M ass achus etts .

C oT weet U nited S ta tes www.cotweet.com C oT weet is a bus iness front-end for T witter, enabling companies to enga ge in proa ctive ma rk eting a nd respons e-oriented customer s ervice
a ctivities .

H i-Media S .A. F rance wwww.hi-media.com Hi-M edia S . A. opera tes as a n advertising ma na gement compa ny in France. I t ma rk ets advertising s pa ce to advertis ers on the Internet. T he
company als o offers a ra nge of s ervices to digital media publishers , including direc t ma rketing serv ices , which compris e direct marketing
me dia pla nning, email, ma il, S M S addres s es leasing, a nd implementing intera ctive TV ca mpa igns ; and micro-pa y ment tec hnical platform
a nd s ervic es . In a ddition, it provides serv ices for prospecting a nd ca nv ass ing of advertisers . H i-Media S .A. wa s founded by C yril
Zimmerman n in 1996. It was formerly k nown as H i-Media Multimedia a nd changed its na me to H i-Media S .A . in 2000. T he company is ba s ed
in P a ris , F ra nce.
Invodo, Inc . U nited S ta tes www.invodo.com Inv odo, I nc. offers sec ure client-controlled a nd two-wa y ex cha nges of corporate a nd us er generated v ideo c ommunic a tions between
companies , employees , and c us tomers . It prov ides s yndic a tion, reporting and s tats , and cus tomer s erv ices ; a nd a cc ount ma na gement
services , including video production and editing, video product pod c reation, UP C /S K U mapping a nd integra tion, a nd v ideo c ontent review.
The c ompa ny a ls o offers video produc tion serv ices that c omprise producing, directing, film and video photogra phy , HD TV , crew pla c ement,
production ma nagement, location sound, non-linear editing, a udio pos t a nd music produc ti on, a nd s trea ming med ia. It s erves ma nufa c turers
a nd retailers . The company wa s founded in 2006 and is bas ed in Austin, T exas .

K ontera I s ra el www.kontera.com K ontera T echnologies , I nc. provides in-text a dv ertis ing a nd information s olutions. I t offers i n-text pa y per c lick and W eb site advertising
solutions . The c ompany prov ides C ontentL ink, an in-text a dvertis ing s olution tha t identifies contextual ly releva nt k eywords on a publis her's
W eb pa ge, as well a s matches them to releva nt a ds a nd information. T he ContentL ink als o provides a ds , whi ch ena ble W eb publis hers to
displa y rel eva nt c ommercial offers on their W eb pa ges , a s well as offers in-text a ds for W eb s ites; a nd va rious forma ts for ads on W eb s ites ,
forums , a nd blogs . I t s erves online a dvertisers , publis hers, and us ers. The company wa s founded in 2003 a nd is based in S a n F rancis c o,
C alifornia with a dditiona l offi ces in New Y ork , N ew Y ork; a nd H erz liya, Is ra el.

L at49 (Idealix s o ftware) C a nada www.lat49.com ID E L I X S oftware , Inc. opera tes a n online a dvertis ing network of intera ctive ma ps . Its network of online ma p properties prov ides local and
bra nd a dv ertis ers an intera c tive medium for delivering geo-targ eted and contex tual dis pla y advertisements. T he company s erves a dv ertis ers,
W eb s ite publis hers, a nd us ers. I DE LIX S oftwa re, I nc. wa s formerly k nown a s Adv anced Numeric al M ethods , Ltd. and cha nged its na me to
ID E L I X S oftware , Inc. in 2001. The company was founded in 1996 a nd is headqua rtered in V ancouv er, C a nada.

Metavers um G erma ny www.metaversum.com Meta vers um G mbH devel ops and operates T winity, a 3D online platform. The Twinity a llows members to crea te a pers ona l a va ta r, ex plore
virtua l c ities, mov e into a 3D home, c hat with friends, and work together in E urope and international ly. M etav ersum G mbH ha s a s tra tegic
me dia pa rtnership with z itty ; a nd a stra tegic pa rtners hip with B igpoint. T he c ompany wa s founded in 2006 and is bas ed in B erlin, G ermany
with a dditiona l offices in K iev a nd S ingapore.

N ing, Inc . U nited S ta tes www.ning.com Ning, I nc. provides web hos ting s ervices . The compa ny ’s platform s upports online communities a nd offers I nternet network ing s olutions.
Additi ona lly, it owns a nd opera tes online blogs and forums . The c ompany mark ets its produc t under the Ning brand na me. N ing, Inc. was
founded in 2004 a nd is ba s ed in P alo A lto, C alifornia.

N exage U nited S ta tes www.nexage.com NE X AG E , Inc . opera tes as a wireless a nd multi media software and s ervices company in the U nited S ta tes a nd interna tionally . It focuses on
providing hos ted white la bel mobile v ideo entertai nment, a dvertis ement, and soc ia l network ing solutions for media companies , content
providers , a nd carriers . The compa ny offers P honeCa s t-P ro, whic h prov ides for the a utoma tic c ontent ingestion, enc oding, ma na gement,
publishi ng, and deliv ery of s treaming mobile video c ontent; P honeca st C lick -to-V ideo, a mobile advertisi ng s olution for a d agencies a nd
a dvertisers to crea te mobile W eb pa ges and load videos for a mobile advertising campaign; a nd My C orner, a branded mobile v ideo s ervice
with c ontent for opera tors . N E X AG E , Inc . wa s founded in 2005 a nd is ba s ed in F remont, Ca lifornia.

Ou tS park, Inc. U nited S ta tes www.outspark.com O utS pa rk , I nc. , an enterta inment services compa ny, publishes a nd operates engaging onli ne multipl a yer ga mes . T he compa ny wa s founded
in 2006 a nd is based in S a n F rancis c o, C alifornia with a subs idiary office in S eoul, K orea .
 Page 21

P andora Media U nited S ta tes www.pandora.com P andora M edia, I nc. , a n Internet ra dio compa ny, prov ides music discovery s ervic es in the Uni ted S tates . The compa ny taps music al
collec tion to deliver s erv ice on computer, in the home, a nd on mobile devic es. I t collects melody, ha rmony , ins trumentation, rhy thm, voca ls ,
a nd ly rics of a s ong. P andora Media, I nc . was formerly known a s S a va ge B east T echnologies. T he compa ny wa s founded in 2000 and is
based in Oa kland, C a lifornia .

P eople Capital U nited S ta tes www.people2capital.com The P eople C apital peer-to-peer s tudent loan lendi ng platform fa c ilitates lending decis ions ba s ed on a student’s “potential” ra ther tha n credit
payment his tory . The P eople C a pital platform genera tes liquidity i n the ma rk et by ma tc hing a ll lenders wi th a ll borrowers, not just “family and
P eople Me dia U nited S ta tes www.peoplemedia.com P eople Media opera tes more tha n 20 v ertic ally focus ed on line c ommunities primarily gea red towa rds da ting.
P ro ton Media U nited S ta tes www.protonmedia.com P rotonM edia LL C provides 3D virtua l world technology , and corpora te tra ining and developi ng s oftware for enterpris es . It offers P rotoS phere,
a priv ate virtual world environment for c olla bora tion a nd lea rning, and a s uite of c ommunica tions a nd s ocial networking tools designed to
overc ome linear communica tions a nd creates a networked lea rning orga niza tion. The c ompa ny ’s tools a lso ena ble tra iners a nd employees to
intera ct a nd collaborate using the s ys tem's built-in a pplica tion s ha ring, voic e ov er I P , text c ha t, and video broa dc a s ting fa c ilities. I ts clients
include bus iness a nd educ a tion sectors. P rotonM edia L LC wa s founded in 1998 and is bas ed in L a nsda le, P ennsy lvania .

Qu ic kP lay Media C a nada www.quickplaymedi a.com Q uick P lay M edia, Inc. prov ides media management a nd dis tribution solutions for mobile telev isi on (T V ) and video s ervic e compa nies. I t
provides O p enV ideo, a pla tform that offers applic ation integra tion for mobile opera tors, media companies , a nd tec hnology pa rtners in N orth
America a nd E urope. The compa ny als o offe rs mana ged s ervic es, inc luding ingestion and dis tribution of content, media mana gement,
a pplica tion development, a nd reporting a nd s ettlemen t serv ices , a s well as li ve a nd on-dema nd c ontent serv ices . I n addition, it prov ides
hosted solutions tha t integra te mobile TV /v ideo s ervic es into on-dec k and off-deck mobile Internet s ites , a nd content s yndica tion s ervic es.
The c ompa ny was founded in 2004 a nd is headqua rtered in Toronto, C a na da. It ha s loca l s ales offices in N orth America a nd E urope.
S BN atio n (S po rts blog s Inc .) U nited S ta tes www.sbnation.com S ports blogs , Inc . , doing bus ines s a s S B N a tion, engages in building s ports s ites on the W eb. I t offers ba seball, bas k etba ll, college, footba ll,
a nd hoc k ey blogs, a s well as genera l blogs , s uch a s fanta s y s ports , cy cling, auto rac ing, golf, fitness , fighting, a nd miscella neous . The
company was incorpora ted i n 2004 a nd is ba sed in W as hington, Dis trict O f C olumbia .
S tyleCas ter U nited S ta tes www.stylecaster.com S ty leCa s ter M edia G roup, LL C provides online fa s hion-lifestyle information s ervi ces . The c ompany is ba sed in N ew Y ork , New Y ork .

S uper Rewards ( KITN Media) C a nada www.srpoints.com K IT N M edia enga ges in the development of fac ebook monetiz ation s oftwa re tool a nd i s based in the United S tates. As of J uly 21, 2009,
K IT N M edia opera tes as a subs idia ry of Adk nowledge, I nc .
T ribu tes U nited S ta tes www.tributes.com Tributes , Inc. operates Tributes .c om, a n online resource for current loc a l a nd nationa l obi tuary news . T he company operates a s an online
community to provide support during times of loss a nd griev ing. It a lso ena bles the v isitors to light c andles or pla ce online gifts on va rious
current and his torica l obituaries a v ailable on the na tiona l o bituary news site, as well a s to sha re photos , v ideos, recollections , a nd other
a rtifa cts . In addition, the c ompany ’s obituary and online memorial s ervic e information helps people to come together online a nd offline to
remember a nd s hare the stories of the people in their lives who ha ve pa ss ed a way. I t has s tra tegic pa rtnerships with E ons , Inc . ; and D ow
J ones & C ompa ny . T he company wa s founded in 2008 and is bas ed in B os ton, Ma s sa chusetts. T ributes , I nc. opera tes a s a s ubsidia ry of
E ons, Inc .
T weetdeck U nited K ingdom www.tweetdeck.com TweetD eck , I nc. offers a des k top a pplica tion to break twitter feeds into ma na gea ble bite s ized pieces . I ts applica tion ena bles users to split
their main feed into topic or group spec ific columns a llowing a broader overview of the tweets . The compa ny wa s founded in 2008 a nd is
based in London, the United K ingdom.
X oopit U nited S ta tes www.xoopit.com X oopit, I nc. offers s ea rch engine tec hnologies tha t deliver sea rc h, productivity , a nd soc ia l media a pplica tions to I nternet users . T he
company 's G raphica l Us er I nterfac e (G U I) allows users to see photos on a grid, such a s an iP hoto. X oopit, Inc . wa s incorporated in 2004 a nd
is bas ed in S a n F ranc isc o, C a lifornia . As of J uly 22, 2009, X oopit, I nc. opera tes a s a s ubsidia ry of Y a hoo! I nc.

Figure 24. Company Descriptions

Source. Company reports, Capital IQ, Crunchbase
 Page 22

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 ) .

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