SOFTWARE & SERVICES 4 AUGUST 2009

DAVID SHORE, CFA, MBA 416.860.6784

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

SOCIAL NETWORKS AND AD NETWORK TO P DESTINATONS FO R CAPITAL IN JULY

CA P IT AL R AI S E D IN J UL Y CL OS E S B EL O W J U NE L E V EL S
The month of July saw 25 financings totalling $164.4 million, lower than June (at $196.1 million), but better than May
at $151.3 million (excluding the Facebook transaction at $200 million). On the acquisition front, it is rumoured that
Super Rewards (a subsidiary of KITN media) received $50 million from Adknowledge. From a sector perspective, for
the last three months, Social Networks continues to be the top destination for capital, closely followed by Ad
Networks.

Financing by Month

900.0 45

800.0 40
763.0

700.0 35
662.9

600.0 30

500.0 25
461.7
(US$mm)

(#)
400.0 375.3 20
351.4 351.3

308.3
300.0 15
254.4 245.3

194.9 203.6 196.1

191.0
200.0 177.5 10
164.4
147.3 145.4 139.7 149.5
132.3 125.6
111.0 101.1
100.3
87.3 88.5 90.3 82.3
100.0 72.1 5
66.3 64.7 70.0 68.0
40.538.8 48.4 47.538.8 47.6
36.4 30.0
21.4 23.9 13.221.4 23.5
7.5 9.4 12.5
0.0 0
Mar-06

May-06

Mar-07

May-07

Mar-08

May-08

Mar-09

May-09
Jun-05
Jul-05
Aug-05
Sep-05
Oct-05
Nov-05
Dec-05
Jan-06
Feb-06

Apr-06

Jun-06
Jul-06
Aug-06
Sep-06
Oct-06
Nov-06
Dec-06
Jan-07
Feb-07

Apr-07

Jun-07
Jul-07
Aug-07
Sep-07
Oct-07
Nov-07
Dec-07
Jan-08
Feb-08

Apr-08

Jun-08
Jul-08
Aug-08
Sep-08
Oct-08
Nov-08
Dec-08
Jan-09
Feb-09

Apr-09

Jun-09
Jul-09

July closes at $164.4 million: Total capital raised in July was $164.4 million through 25 transactions, averaging $6.3
million per transaction. In July, online media company Pandora (Internet Radio) secured the largest financing
transaction ($35 million). In-text advertisement company Kontera Ltd. and social networking company Ning followed
with $15.5 million and $15.0 million in financings, respectively. Canadian company Super Rewards (subsidiary of
KITN Media) is rumoured to have fetched $50 million in its acquisition by Adknowledge. June closed with $196.1
million in financing on 40 transactions. The averages for the months of May (excluding the Facebook transaction) and
June were $6.6 million and $4.9 million, respectively.

Weak price performance: Most of the companies in our universe had negative stock price performances over the
past week (for stocks with prices greater than $1) (Figure 12), with 27 companies showing negative returns on the
week. Quepasa Corp (QPSA-OTCBB) led the group with a 20.2% return, while Shanda Interactive Entertainment Ltd.
(SNDA-NASDAQGS) had the worst return, dropping 12.4% 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 ~$61 billion (Figure 1). The median market cap for the group is ~$50 million, with average trailing revenue of ~$156
million (median $56.1 million). The companies are also generally profitable, with a median EBITDA margin of 13.1%. On a
valuation basis, the overall average is 5.8x trailing revenue (median 2.0x) and 10.9x trailing EBITDA (median 9.6x).
Twenty-one of the companies have more than 500 employees.
C omparable C ompany Analys is > Web 2.0
Trading C urrent US D Market US D L TM Total US D L TM Total E B ITDA TE V/L TM TE V/L TM
C ompany Name L TM as of Ticker E xc hange C urrency HQ P rice C ap ($m) R ev ($m) E B ITDA ($m) % R evenue E B ITDA E mployees
Accelerize New Media , Inc. 3/31/2009 AC LZ OT C B B US D United S ta tes 0. 56 15. 5 4. 1 (4.4) NM 5. 0x - 11
Actoz S oft C o. , Ltd. 3/31/2009 A052790 K OS E KR W S outh K orea 23,700 167. 2 94. 5 20. 5 21. 7% 1. 4x 6. 7x NA
AQ Interactive, Inc. 3/31/2009 3838 TS E JPY J a pan 60,400 34. 7 65. 3 4.1 6.3% 0. 1x 1. 3x NA
As s ociated Media Holdings Inc. 6/30/2007 AS MH OT C P K US D United S ta tes 0. 01 0.6 0. 1 (2.3) NM 15.6x - 3
B igs tring C orp. 3/31/2009 BS GC OT C B B US D United S ta tes 0. 03 1.4 0. 1 (2.0) NM 37.4x - 4
B eta wave C orporation 3/31/2009 B W AV OT C B B US D United S ta tes 0. 07 2.0 8. 4 (12. 6) NM - - 53
B eyond C ommerce, Inc. 3/31/2009 B Y OC OT C B B US D United S ta tes 0. 38 17. 2 7. 1 (9.5) NM 3. 1x - 69
B right T hings plc 9/30/2008 AIM: B G T AIM GBP United K ingdom 0. 02 5.8 0. 3 (1.9) NM 20.9x - 9
B roa dW ebAs ia Inc. 9/30/2008 BWBA OT C P K US D United S ta tes 0. 23 19. 5 0. 0 (4.6) NM - - 46
C DC C orp. 3/31/2009 C HIN. A Na s daqG S US D Hong K ong 3. 06 324. 7 389.9 30. 8 7.9% 0. 9x 11. 0x 2, 227
C hangyou. com L imited 6/30/2009 C Y OU Na s daqG S US D C hina 37. 12 2,041. 6 241.2 147.2 61. 0% 7. 3x 12. 0x 628
C hina G a teway C orporation 9/30/2008 CGWY OT C P K US D United S ta tes 0. 02 0.3 6. 7 (6.6) -98. 9% 0. 0x - 37
C hines e G amer Interna tiona l 3/31/2009 G T S M: 3083 GTS M TWD T aiwa n 433 1,109. 4 56. 3 31. 5 56. 0% 18.5x 33. 1x NA
C LIC K E R Inc. 5/31/2009 C LK Z OT C B B US D United S ta tes 0. 01 0.4 2. 5 (1.2) -45. 8% 0. 2x - 22
C ornerW orld C orpora tion 1/31/2009 CWR L OT C B B US D United S ta tes 0. 05 3.2 1. 3 NM NM 3. 6x - NA
C yberplex Inc. 3/31/2009 T S X :C X TS X C AD C anada 2 102. 6 75. 5 7.8 10. 3% 1. 3x 12. 6x NA
DADA S pA 3/31/2009 C M: DA CM E UR Italy 6. 14 141. 6 239.2 35. 0 14. 6% 0. 8x 5. 5x 578
DXN Holdings B hd 2/28/2009 DX N K LS E MY R Ma la ys ia 0. 40 26. 3 78. 7 10. 9 13. 8% 0. 5x 3. 7x NA
Dibz International, Inc. NA DIB Z OT C P K US D United S ta tes 0. 00 0.0 NA NM NM - - NA
DigitalP os t Interactive, Inc. 3/31/2009 DG LP OT C B B US D United S ta tes 0. 05 4.0 0. 7 (2.6) NM 7. 7x - 7
DigitalT own, Inc. 5/31/2009 DG T W OT C B B US D United S ta tes 1. 40 38. 3 NM (2.5) NM - - 3
Dolphin Digital Media , Inc. 3/31/2009 DP DM OT C B B US D United S ta tes 0. 49 25. 3 0. 8 (3.7) NM 34.0x - NA
E olith C o. Ltd. 12/31/2008 A041060 K OS E KR W S outh K orea 810 48. 0 15. 1 (3.6) -23. 6% 3. 3x - NA
E xtens ions , Inc. 3/31/2009 E XT I OT C P K US D United S ta tes 0. 08 3.6 NM NM NM - - 2
F luid Mus ic C a nada , Inc. 3/31/2009 T S X :F MN TS X C AD United S ta tes 0. 91 44. 2 5. 0 (6.9) NM 6. 8x - NA
F rogs ter Interactive P ictures AG 12/31/2008 FRG XT R A E UR G ermany 13. 50 48. 5 3. 3 (6.2) NM 14.3x - NA
G ama nia Digita l E ntertainment C o., Ltd. 3/31/2009 6180 GTS M TWD T aiwa n 59. 60 275. 8 126.2 21. 0 16. 6% 2. 0x 12. 1x NA
G ameOn C o Ltd. 3/31/2009 3812 TS E JPY J a pan 101,900 104. 0 77. 7 18. 4 23. 7% 0. 5x 2. 3x NA
G eoS entric O yj 3/31/2009 G E O 1V HL S E E UR F inland 0. 04 51. 1 6. 0 (15. 6) NM 7. 8x - 108
G iant Interactive G roup, Inc. 3/31/2009 GA NY S E US D C hina 8 1,838. 4 219.0 NM NM - - 1, 570
G iga Media Ltd. 3/31/2009 G IG M Na s daqG S US D T aiwa n 4. 87 265. 5 183.6 NM NM 1. 0x - 751
G ravity C o., Ltd 3/31/2009 GR VY Na s daqG M US D S outh K orea 1. 58 43. 9 46. 8 12. 9 27. 5% - - 469
G ree, Inc. 6/30/2008 T S E : 3632 TS E JPY J a pan 7,650 1,807. 6 31. 0 11. 2 36. 0% - - NA
G ungHo O nline E ntertainment, Inc. 3/31/2009 3765 OS E JPY J a pan 209,000 252. 8 108.8 19. 5 18. 0% 2. 1x 11. 5x NA
HanbitS oft, Inc. 3/31/2009 A047080 K OS E KR W S outh K orea 4,370 78. 4 56. 5 (15. 1) -26. 8% 1. 1x - NA
IAC /InterActiveC orp. 3/31/2009 IAC I Na s daqG S US D United S ta tes 18. 47 2,787. 4 1, 406. 4 42. 6 3.0% 0. 6x 21. 2x 3, 200
IAS E nergy, Inc. 1/31/2009 IAS C . A OT C B B US D C anada 0. 11 8.0 0. 0 (0.8) NM - - NA
is eemedia Inc. 3/31/2009 IE E T S XV C AD C anada 0. 08 3.8 1. 6 (5.1) NM 1. 8x - NA
J umbuck E nterta inment P ty Ltd. 12/31/2008 AS X :J MB AS X AUD Aus tralia 0. 38 15. 4 14. 9 5.6 37. 2% 0. 7x 1. 8x 72
K AB Dis tribution Inc. 3/31/2009 T S X :K AB TS X C AD C anada 1 83. 0 76. 3 9.1 11. 9% 1. 2x 9. 7x NA
K ings oft C o. Ltd. 3/31/2009 3888 S E HK HK D C hina 8 1,096. 9 129.1 52. 0 40. 3% 8. 4x 20. 9x 2, 271
Lingo Media C orporation 3/31/2009 T S X V :LM T S XV C AD C anada 1. 15 13. 3 0. 9 (1.6) NM 12.7x - NA
LiveW orld Inc. 3/31/2009 LVW D OT C P K US D United S ta tes 0. 04 1.1 11. 4 (0.0) -0.4% - - NA
LookS mart, Ltd. 3/31/2009 L OO K Na s daqG M US D United S ta tes 1. 20 20. 5 60. 7 (3.8) -6.3% - - 90
Magnitude Information S ys tems Inc. 3/31/2009 MAG Y OT C B B US D United S ta tes 0. 01 2.7 0. 1 (3.1) NM - - 14
Mixi, Inc. 3/31/2009 2121 TS E JPY J a pan 667000. 00 1,082. 6 127.3 45. 1 35. 4% 7. 6x 21. 3x NA
Modern T imes G roup Mtg AB 6/30/2009 MT G B OM SEK S weden 269. 00 2,448. 4 1, 896. 1 291.3 15. 4% 1. 6x 10. 3x 2, 969
MO K O .mobi Limited 12/31/2008 MK B AS X AUD Aus tralia 0. 07 4.7 1. 2 (2.5) NM 2. 9x - NA
Myriad G roup AG 12/31/2008 MY R N SWX C HF S witzerland 4. 14 82. 4 40. 0 0.8 1.9% 2. 3x - 405
NE O W IZ G ames C orpora tion 12/31/2008 A095660 K OS E KR W S outh K orea 31200. 00 537. 3 202.6 54. 4 26. 8% 2. 6x 9. 7x NA
NetDragon W ebS oft, Inc. 3/31/2009 777 S E HK HK D C hina 6 419. 4 87. 0 34. 4 39. 5% 3. 3x 8. 4x 2, 426
Neteas e. com Inc. 3/31/2009 NT E S Na s daqG S US D C hina 44. 15 5,670. 2 470.5 305.8 65. 0% - - 3, 109
NeuLion Incorporated 3/31/2009 T S X :NLN TS X C AD C anada 0. 81 85. 6 18. 1 (11. 8) -65. 2% 3. 9x - 237
NeXplore C orporation 6/30/2008 NX P C OT C P K US D United S ta tes 1 30. 7 0. 7 (6.2) NM 49.2x - NA
Ngi G roup Inc. 3/31/2009 2497 TS E JPY J a pan 32250. 00 42. 2 93. 2 11. 2 12. 0% 0. 0x 0. 1x NA
Northgate T echnologies L imited 3/31/2009 590057 BSE INR India 39. 15 28. 5 116.9 (27. 4) -23. 5% 0. 2x - NA
O pen T ext C orp. 3/31/2009 OT E X Na s daqG S US D C anada 37. 95 1,997. 0 782.6 199.2 25. 5% 2. 6x 10. 4x 3, 400
O penwave S ys tems Inc. 3/31/2009 OP W V Na s daqG S US D United S ta tes 2. 67 222. 4 197.2 (2.1) -1.0% 0. 6x - 630
P erfect W orld C o. , Ltd. 3/31/2009 PWRD Na s daqG S US D C hina 35. 84 1,743. 2 228.1 124.6 54. 6% 0. 4x 0. 8x 2, 096
P NI Digital Media Inc. 3/31/2009 T S X V :P N T S XV C AD C anada 1. 50 47. 5 20. 1 0.5 2.3% 2. 3x - NA
Q uepa s a C orp. 3/31/2009 QP S A OT C B B US D United S ta tes 1 15. 1 0. 1 (10. 8) NM - - 74
O AO R B C Information S ys tems 12/31/2007 R BCI R TS US D R us s ia 1. 05 145. 7 150.1 19. 6 13. 1% 0. 0x 0. 2x NA
S handa Interactive E nterta inment Ltd. 3/31/2009 S NDA Na s daqG S US D C hina 49. 91 3,332. 4 570.1 260.9 45. 8% - - 3, 124
S hutterfly, Inc. 6/30/2009 S FLY Na s daqG S US D United S ta tes 16. 20 411. 7 218.6 27. 3 12. 5% 1. 6x 12. 7x 514
S K C ommunications C o., Ltd. 12/31/2008 A066270 K OS E KR W S outh K orea 9230. 00 316. 5 188.3 12. 2 6.5% 1. 7x 25. 8x NA
S NAP Interactive, Inc. 3/31/2009 S TVI OT C B B US D United S ta tes 0 2.2 3. 3 0.9 28. 0% 0. 2x 0. 7x 11
S NM G loba l Holdings 9/30/2008 S NMN OT C P K US D United S ta tes 0. 01 0.0 2. 0 (0.7) -34. 8% 1. 1x - 33
S ocial Media V enures , Inc. 12/31/2008 S MV I OT C P K US D United S ta tes 0 0.0 0. 1 (0.1) -60. 6% 4. 6x - NA
S ocialwis e, Inc. 3/31/2009 S C LW OT C B B US D United S ta tes 0. 76 32. 9 0. 0 (4.8) NM - - NA
S ohu. com Inc. 6/30/2009 S O HU Na s daqG S US D C hina 61. 63 2,358. 2 485.1 209.4 43. 2% 3. 8x 8. 9x 3, 197
S park Networks , Inc. 3/31/2009 L OV AME X US D United S ta tes 2 51. 2 54. 3 11. 8 21. 7% 0. 9x 4. 4x 183
S pectrumDNA, Inc. 3/31/2009 S P XA OT C B B US D United S ta tes 0 6.8 0. 1 (2.6) NM - - 7
T encent Holdings Ltd. 3/31/2009 700 S E HK HK D C hina 105 24, 360.7 1, 203. 5 582.9 48. 4% 22.2x 45. 8x 6, 123
T he P arent C ompany 8/2/2008 K IDS . Q OT C P K US D United S ta tes 0. 02 0.4 112.0 (13. 5) -12. 0% 0. 2x - 347
T he9 Limited 12/31/2008 NC T Y Na s daqG S US D C hina 8. 66 220. 9 250.4 85. 4 34. 1% - - 1, 626
T heS treet. com, Inc. 3/31/2009 TS CM Na s daqG M US D United S ta tes 2. 10 64. 3 67. 0 1.9 2.9% - - 310
T ota l S port O nline AS 3/31/2006 T OS O O T C NO NO K Norway 0. 03 0.1 2. 2 (1.1) -50. 6% 4. 6x - 16
T ree.C om, Inc. 3/31/2009 TR E E Na s daqG M US D United S ta tes 9. 70 104. 7 215.6 (13. 3) -6.2% 0. 4x - 700
Unis erve C ommunica tions C orp. 2/28/2009 T S X V :US S T S XV C AD C anada 0. 05 1.0 24. 1 0.1 0.2% 0. 2x - NA
United O nline Inc. 3/31/2009 UNT D Na s daqG S US D United S ta tes 9. 20 768. 9 811.2 177.3 21. 9% 1. 3x 5. 9x 1, 469
UOMO Media, Inc 1/31/2009 UO MO OT C B B US D C anada 0 14. 6 0. 6 (0.5) -78. 2% 23.5x - NA
V alueC lick Inc. 3/31/2009 V C LK Na s daqG S US D United S ta tes 12 1,011. 4 591.7 105.5 17. 8% 1. 5x 8. 6x 1, 189
V OIS , Inc. 3/31/2009 V O IS OT C B B US D United S ta tes 0 5.0 0. 0 (1.1) NM - - 4
W ebzen Inc. 3/31/2009 W ZE N Na s daqG M US D S outh K orea 3. 40 40. 3 23. 5 (0.6) -2.4% - - NA
W izzard S oftwa re C orporation 3/31/2009 W ZE AME X US D United S ta tes 0. 51 24. 4 5. 6 (5.3) -94. 5% 4. 6x - 110
W orlds . com Inc. 3/31/2009 W DDD OT C B B US D United S ta tes 0. 10 5.2 0. 0 (0.8) NM - - 1
W oozyF ly, Inc. 3/31/2009 W ZY F OT C B B US D United S ta tes 0. 15 2.6 NM NM NM - - NA
W ynds torm C orpora tion NA W Y ND OT C P K US D United S ta tes 0. 10 1.8 NA NM NM - - NA
XING AG 3/31/2009 O 1B C XT R A E UR G ermany 28. 50 213. 9 53. 9 16. 8 31. 2% 3. 0x 9. 6x 239
Y eda ngO nline C orp. 12/31/2007 A052770 K OS E KR W S outh K orea 7,940 102. 0 56. 1 12. 1 21. 6% 2. 0x 9. 3x NA
Y nk K orea Inc. 3/31/2009 A023770 K OS E KR W S outh K orea 5,330 23. 3 10. 8 (0.8) -7.6% - - NA
High 24, 360.7 1,896. 1 582. 9 65. 0% 49.2x 45. 8x 6, 123
Low 0.0 0. 0 -27.4 -98. 9% 0. 0x 0. 1x 1
Average 678.1 155.6 34.3 6.8% 5.8x 10.9x 900
Median 51. 2 56.1 0. 8 13. 1% 2. 0x 9. 6x 437

Figure 1. Web 2.0 Universe Summary

Source. Capital IQ
 Page 3

C A P I T A L M A R K E T S A C T I V I T Y (M & A A N D F I N A N C I N G )
July closes at $164.4 million: Total capital raised in July was $164.4 million through 25 transactions, averaging $6.3
million per transaction. 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 followed with
$15.5 million and $15.0 million in financings, respectively. Canadian company Super Rewards (subsidiary of KITN Media)
is rumoured to have fetched $50 million in its acquisition by Adknowledge. June closed with $196.1 million in financing on
40 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 7.0
6.6

6.3

6.0

200.0

5.0
4.9

150.0
4.0
(US$m)

(US$m)
3.0
100.0

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)

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 and 30 (at end of note).
Tumri
Boku
Cyberplex
QuickPlay Media

Figure 3. Capital Market Activity, Last Three Months

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

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

Rewards (subsidiary of KITN media) was acquired by Adknowledge for a rumoured $50 million. On the capital raise front,
Pandora had the largest raise in July, securing a $35 million round. For additional details on financings, see Figures 29
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 30.8 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 4.1 3.2 3.0
Comment/Reputation

Mobile Payment

Communities
Online Dating

Gaming

Mobile

Enterprise

Online Learning

Collaboration

Media

Microblog
Music
Infrastructure

Blog

Search

Classified

Mobile Ad
Widget
Social Networks

Virtual World

Video

Aggregation
Ad Network

Vertical
# companies
13 17 1 5 8 1 3 7 1 4 4 6 3 3 3 2 1 1 1 2 1 1 2

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

Source. Company reports
 Page 6

Average round size decreases: On a trailing 12-month basis, total financing dollars increased as of July 2009, with
average round sizes continuing to decrease (Figure 5).

LTM Financing

4,500.0 18.0

4,000.0 16.0

3,500.0 14.0

3,000.0 12.0

2,500.0 10.0
(US$m)

(US$m)
`
2,000.0 8.0

1,500.0 6.0

1,000.0 4.0

500.0 2.0

0.0 0.0
Jun-05

Aug-05

Oct-05

Dec-05

Feb-06

Apr-06

Jun-06

Aug-06

Oct-06

Dec-06

Feb-07

Apr-07

Jun-07

Aug-07

Oct-07

Dec-07

Feb-08

Apr-08

Jun-08

Aug-08

Oct-08

Dec-08

Feb-09

Apr-09

Jun-09
Total Average

Figure 5. Financings, Last 12 Months

Source. Company reports
 Page 7

Cumulative total nears $7.3 billion: Overall, on a cumulative basis, W eb 2.0 financings have totalled just over $7.3
billion, with the majority of the financing coming in late 2007 and the first three quarters of 2008 (Figure 6). Financing for
the second quarter of 2009 marginally passed that raised in the first quarter of 2009 – the second straight quarter of
increased investments. However, for the period ended Q2/CY09, total capital raised was below the Q2/CY08 level. The
total capital raise in Q2/09 was $697.0 million buoyed by the $200 million Facebook transaction and is well below
Q2/CY08 totals ($1.4 billion).

Web 2.0 Financing (cumulative)

1,600.0 8,000.0

1,400.0 1,356.9 7,000.0

1,200.0 6,000.0

1,007.6
1,000.0 5,000.0
872.1
(US$m)

(US$m)
800.0 4,000.0
697.0

594.2 613.8
600.0 3,000.0

414.2
400.0 366.3 2,000.0

203.7
158.1 174.8177.8
200.0 132.4145.6 1,000.0
88.3 73.5
59.4
41.5 24.7 33.5 22.2 43.3
0.0 0.0
Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2
2004 2005 2006 2007 2008 2009

Figure 6. Financing, Cumulative

Source. Company reports
 Page 8

U.S. remains dominant: U.S. companies continue to dominate capital market activity – with 78.1% of financings/M&A in
the last twelve months involving U.S. companies (based on dollars) (Figure 7). Based on number of transactions, the U.S.
leads with 74.4% of deals, while Canada was a distant second with a 4.9% share of the total number of financings (Figure
8).

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

Canada Canada UK Israel
4.7% Israel 4.9% 4.2% 4.2%
3.3% France
UK
3.0% 3.1%
France
3.0%

China
2.6% ROW
10.1%

Germany
2.1%

ROW
3.1%

USA
78.1%
USA
73.4%

Figures 7 & 8. Financing/M&A, by Country (LTM, $, #)

Source. Company reports

Larger volume of early-stage funding (by count): Almost half of financings in the last 12 months are for early-stage
companies (Angel/Seed or Series A) (Figure 9). Series B rounds are 25.8% of the total, with later-stage (Series D, E and
PIPE) deals accounting for just 8.0%.

Financing by Type - LTM

Series C
Series B 15.1%
25.8%

Series D
4.3%

Series E
1.0%

Angel/Seed
Series A
17.4%
31.8%

Debt financing
PIPE 2.0%
2.7%

Figure 9 Financing, by Type (LTM, #)

Source. Company reports
 Page 9

Equity financings smaller over last 12 months: In the last 12 months, the average size of Series A, B, C and D rounds
has all been lower than the overall average (Figure 10).

Average financing round size

35.0
33.1

30.0

26.3
25.6
25.0
23.7

20.0
(US$m)

15.0 13.9

10.7 10.8 10.8

10.0
8.5
7.5 7.7
6.3 6.6
5.4
5.0
3.2 3.3

0.0
Angel/Seed Debt financing PIPE Series A Series B Series C Series D Series E

LTM Average Size Overall Average

Figure 10. Average Size per Round

Source. Company reports
 Page 10

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 )
Price Performance: Our W eb 2.0 index (market-cap weighted) underperformed the NASDAQ composite index from mid-
2008 until recently when it has moved sharply higher than the NASDAQ index (Figure 11).

Web 2.0 Index Price Performance

140

120

100

80

60

40

20

0
7/31/2008

8/14/2008

8/28/2008

9/11/2008

9/25/2008

10/9/2008

10/23/2008

11/6/2008

11/20/2008

12/4/2008

12/18/2008

1/1/2009

1/15/2009

1/29/2009

2/12/2009

2/26/2009

3/12/2009

3/26/2009

4/9/2009

4/23/2009

5/7/2009

5/21/2009

6/4/2009

6/18/2009

7/2/2009

7/16/2009

7/30/2009
^COMP - Share Pricing Index: Web 2.0 (Market Cap)

Figure 11. Web 2.0 Price Performance

Source. Capital IQ
 Page 11

Quepasa leads; Shanda falls: Most of the companies in our universe had negative stock price performances over the
past week (for stocks with prices greater than $1) (Figure 12), with 27 companies showing negative returns on the week.
Quepasa Corp (QPSA-OTCBB) led the group with a 20.2% return, while Shanda Interactive Entertainment Ltd. (SNDA-
NASDAQGS) had the worst return, dropping 12.4% in the week.

1 Week P rice P erformance

Quepas a Corp. 20.2%
Frogs ter Interactiv e Pictures A G 12.2%
G ree, Inc. 11.4%
K ings of t Co. Ltd. 9.2%
Modern Times G roup Mtg A B 6.7%
Northgate Technologies Limited 5.0%
Neteas e.com Inc. 4.7%
S park Netw orks , Inc. 4.6%
Lingo Media Corporation 4.5%
United Online Inc. 3.7%
S hutterf ly , Inc. 3.3%
Eolith Co. Ltd. 3.2%
IA C/InterA ctiveCorp. 3.1%
G ravity Co., Ltd 2.6%
Perfect World Co., Ltd. 2.5%
TheS treet.com, Inc. 1.9%
NetDragon WebS of t, Inc. 1.5%
Tencent Holdings Ltd. 1.1%
NEOWIZ Games Corporation 1.0%
LookS mart, Ltd. 0.8%
DA DA S pA 0.6%
PNI Digital Media Inc. 0.0%
Giant Interactive G roup, Inc. -0.4%
Y edangOnline Corp. -1.0%
A Q Interactiv e, Inc. -1.5%
Open Tex t Corp. -1.5%
V alueClick Inc. -1.6%
GungHo Online Entertainment, Inc. -1.9%
G igaMedia Ltd. -2.2%
Webz en Inc. -2.7%
S K Communications Co., Ltd. -2.7%
Cy berplex Inc. -2.9%
HanbitS of t, Inc. -2.9%
Gamania Digital Entertainment Co., -2.9%
S ohu.com Inc. -3.1%
Ngi G roup Inc. -3.4%
XING A G -3.5%
The9 Limited -3.6%
Mix i, Inc. -4.0%
CDC Corp. -4.1%
Chines e Gamer International -4.4%
G ameOn Co Ltd. -4.8%
My riad Group A G -4.8%
A ctoz S of t Co., Ltd. -6.7%
Y nk K orea Inc. -8.1%
Tree.Com, Inc. -9.3%
Openw ave S y s tems Inc. -10.1%
Changy ou.com Limited -10.9%
S handa Interactive Entertainment Ltd. -12.4%
-15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0%

Figure 12. 1-Week Price Performance

Source. Capital IQ
 Page 12

INDUSTRY NEWS (PARTNERSHIPS, FINANCIAL RESULTS, NEW PRODUCTS)

K ey Developments
C ompany Headline Notes
MOK O.mobi Limited (AS X: MKB ) 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 OK O M usic on s elected AT &T mobile handsets . T he C ha t & S ha re platform's new
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.
B eyond Commerc e, Inc . 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
(OT CB B: B Y OC) B oard of Directors 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 Offic er. P aul W . Morris on is currently the C hief E xecuti ve Officer a nd P resident of OmniR elia nt H oldings Inc .

IAC /InterAc tiveC orp. (Nas daqG S : IAC I)
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
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.

Notiona l will be headed by R ic ky V an V een, who will transition from hi s current role as E ditor-in-Chief of C ollegeH umor.

S ohu. c om Inc . (Nas daqG S : S OHU)
S ohu.com I nc. P rovides R evenue G uida nc e for the Third S ohu.com I nc. provided revenue guidance for the third quarter of 2009. For the qua rter, the co mpa ny ex pects tota l revenues to be between
Quarter of 2009 $133.5 mi llion to $137. 5 million, with advertis ing rev enues of $49. 5 million to $51.5 million. B rand a dvertising revenues of $48 to $50 million.
T his implies a 10% to 15% qu arter-on-qua rter growth or a negative 3% to pos itive 1% y ear-on-yea r growth. T his will bring bra nd advertising
growth for the firs t qua rter-for the firs t three qua rters of 2009 to between 5% to 7% yea r-on-y ear. O nline games revenues of $67 mil lion to
$69 million. B efore deduc ting the s ha re of non-G AAP net income pertaining to the non-c ontrolling interest in C ha ngyou, the c ompa ny
estimates pro forma non-G AAP net income to be between $50 million to $52 mill ion, a s compared to $49 million for the s econd quarter as
mentioned a bove. After deduc ting the s ha re of non-G AAP net income pertaining to the non-controlling interes t in Changy ou, S ohu es tima tes
non-G AAP net income attributable to S ohu for the third qua rter of 2009 to be between $36 million to $38 million a nd non-G AAP fully diluted
earnings per s hare for the third qua rter of 2009 to be between $0. 92 to $0. 97. As s uming no new grants of s hare-based a wa rds , S ohu estima te

IAC /InterAc tiveC orp. (Nas daqG S : IAC I) B en S ilverma n to Join IAC /I nterActiveC orp. to H ead I ts B en S ilv erma n res igned to his job a s co-c ha irman of N B C E ntertainment a nd Universa l Movie S tudios to hea d a new v enture with B a rry
New V enture Diller's I AC /InterActiveCorp. focusing on produc ing and dis tributing multimedia content. I AC a nnounc ed that it is forming a new production
company led by S ilverma n tha t will look to bring a dv ertis ers into further into the dev elopment proces s on new media produc ts .

Neteas e. com Inc. (Nas daqG S : NT E S )
DADA S pA (C M: DA)
S handa Interactive E ntertainment L td.
(Nas daqG S : S NDA)
Netea se. c om I nc. R eports Online G a ming R ev enue
R es ults for the F irst Quarter of 2009
DAD A S pA R eports E a rnings R es ults for the F irst S ix
Months of 2009
S handa I nteractive E ntertainment L td. R eports Online
G a ming R evenue R es ults for the F irs t Q ua rter of 2009
Netea se. com Inc. reported online gaming rev enue res ults for the first quarter of 2009. For the quarter, the compa ny reported rev enue of C N Y
710 million, with a 12. 9% mark et s ha re.
DAD A S pA reported ea rnings res ults for the first s ix months of 2009. For the period, the company notched up rev enues of €76. 3 million,
down from the €81.3 mill ion of the s a me period la s t year and net profits of €1. 1 million, down (from €8 million).
S handa I nterac tive E ntertainment L td. reports online gaming rev enue res ults for the first quarter of 2009. For the quarter, the company
reported revenue of CN Y 1.08 billion, with a 19. 6% ma rk et sh are.

T enc en t Ho ldings Ltd. (S E H K: 700) T enc ent H oldings Ltd. R eports C hines e Online G aming T enc ent Holdin gs Ltd. reported Chines e online ga ming revenue res ults for the first qua rter of 2009. F or the qua rter, the company reported
R evenue R esul ts for the Firs t Quarter of 2009 revenue of C N Y 910 million, with a 13% increas e quarter on qua rter.

T he9 L imited (Nas daqG S :NC TY)
C hang yo u. c om L imited
(Nas daqG S : C YOU)
G ian t Interactive G ro up, Inc .
(NYS E : G A); Xuelang S oftw are
S ohu. c om Inc . (Nas daqG S : S OHU)
T he9 Limited R eports Online G a ming R evenue R es ults
for th e F irst Quarter of 2009
Changy ou.com Limited R eports Onl ine G a ming R evenu e
R es ults for the F irst Quarter of 2009
G ia nt I nterac tiv e G roup, Inc . (NY S E : G A) agreed to
a cquire 51% stake in X uela ng S oftwa re.
S ohu.com I nc. R eports Una udited Cons olida ted F inancia l
R es ults for the S econd Q ua rter a nd S ix Months E nded
J une 30, 2009
T he9 Limi ted reported online gaming revenue results for the firs t qua rter of 2009. T he company reported tha t its firs t-qua rter rev enue
decreas ed by 6% quarter on qua rter.
Changy ou.com Limited reported online ga ming revenue res ults for the firs t qua rter of 2009. For the qua rter, the compa ny reported revenue of
CN Y 420 million.
G ia nt Interac tiv e G roup, I nc . (NY S E : G A) agreed to ac quire 51% s tak e in X uela ng S oftware on J uly 27, 2009.
S ohu.com I nc. repo rted una udited Cons olida ted fina ncial res ults for the second qua rter a nd s ix mo nths ended June 30, 2009. F or the
quarter, the c ompany reported operating profit of $48. 5 million, inc ome before inc ome ta x expens e of $49. 9 million, income from c ontinuing
opera tions of $41.9 mill ion, net inc ome of $42. 3 million a nd net inc ome attributable to company of $33. 5 million or $0. 79 diluted per s ha re on
total rev enues of $127. 1 million against operating profit o f $39.9 million, income before income tax ex pense of $40. 8 million, inc ome from
continuing operations of $40. 2 million, net income of $40.2 million and net income a ttributa ble to compa ny of $40. 2 million or $1. 02 dil uted
per s ha re on to tal revenues of $10 2.0 millio n for the s a me period a y ear a go . Non-G AAP net inc ome attributable to company for the s econd
quarter of 2009 was $38. 7 million or $0. 90 per diluted s hare a ga ins t N on-G AAP net income a ttributable to compa ny for the second qua rter of
2009 wa s $42.3 million or $1.07 per diluted sha re for the s a me period a y ear ago. T he compa ny reported opera ting profit was $55.1 million
a gainst opera ting profit was $42.0 million for the same period a yea r ago.

C hang yo u. c om L imited Changy ou.com Limited R eports U naudited C onsolidated
(Nas daqG S : C YOU) E a rnings R esults for the S econd Q ua rter E nded J une 30,
2009 ; P rovides E arnings G uida nce for the T hird Quarter
of 2009
Changy ou.com Limited una udited c onsoli dated reported unaudited ea rnings res ults for the s econd quarter ended J une 30, 2009. T otal
revenues for the sec ond quarter of 2009 increa sed 8% qua rter-over-qua rter and 39% y ea r-over-year to $66. 6 million. Opera ting profit for the
sec ond quarter of 2009 increa s ed 4% qua rter-over-qua rter and 42 % y ear-over-y ear to $39. 5 million. N on-G AAP opera ting profit for the
sec ond quarter of 2009 increa s ed 17% quarter-ov er-quarter a nd 5 7% y ea r-over-y ea r to $45. 1 million. F or the sec ond qua rter of 2009, net
income increas ed 3% quarter-over-quarter a nd 9% y ea r-over-y ear to $ 34.5 millio n. Non-G AAP net income increa sed 17% quarter-ov er-
quarter and 24% ye ar-ov er-year to $40. 2 million. F ully diluted ea rnings per ADS were $0. 66, compared to $0.71 in the firs t quarter of 2009
a nd $0. 67 in the s econd quarter of 2008. N on-G AAP fully dilu ted earnings per A DS were $0.75, up from $0.72 in the firs t qua rter of 2009 and
$0.68 in the second quarter of 2008. Inc ome before inc ome ta x expens e was $40. 3 million against $27. 7 million a y ea r a go. Opera ting ca sh
flow for the qua rter wa s a net inflow of $33.7 mil lion.

S pec trumDNA, Inc . (OTC BB :S PXA)
DADA S pA (C M: DA)
C hang yo u. c om L imited
(Nas daqG S : C YOU)
B urs t Media Corporation (AIM:B R S T);
C yberplex Inc . (TS X: C X)
IAC /InterAc tiveC orp. (Nas daqG S : IAC I)
B eyond Commerc e, Inc .
(OT CB B: B Y OC)
IAC /InterAc tiveC orp. (Nas daqG S : IAC I)
S hutterfly, Inc . (Nas daqG S : S FL Y)
W izz ard S oftware Co rporation
(A ME X: WZE )
Openwave S ys tems Inc .
(Nas daqG S : OPW V)
Figure 13. Key Developments
Source. Capital IQ
Page 13
New Y ork P ost and S pec trumDN A P artner to L aunc h S pectrumDN A I nc. has signed a contra ct with the N ew Y ork P os t to license its A ddictionary, a S aa S (softwa re-as-a-s ervice) user-generated
E xclusiv e New Y ork Addictionary dictiona ry tha t lets people c reate their own words and definitions . K nown for its eye-ca tching hea dlines , ground-brea king goss ip and pla y on
words , the New Y ork P ost rea ches nearly 5. 5 million online uni que us ers per month and is a natura l fit for the Addic tiona ry s oci a l media
a pplication. T he N ew Y ork Addic tiona ry will s erve as a n engine to inc reas e k ey metric s of us er engagement inc luding pa ge views , time spent
on s ite, frequency of vis its, viral and word-of-mouth distribution a nd premium a d a nd s ponsors hip inv entory. T he a pplic ation is s et to launc h
in Augus t and will pa ve the wa y for deriv ati ve products s uch a s greetin g c ards, ca lendars , games a nd book s featuring the top-ra ted words
created by the community a t ny post. com. T he N ew Y ork P os t Addictionary joins a network of s ocia l media c ommunities which inclu des
NB C 's 'T he O ffice' Addictiona ry, E ! E nterta i nment's Celebrity Addic tiona ry , C omedy C entra l's P olitica l Addic tiona ry , D ictionary. com's
Addictiona ry and FE AR net's H orror Addictionary.
DAD A S pA R eports E a rnings R es ults for F irs t H a lf of DAD A S pA reported ea rnings before interes t, ta x, depreciation a nd a mortis a ti on (E B I T D A) fell to E UR 10.7 milli on from E U R 14.4 mi llion for
2009; R ea ffirms E arnings O utlook for F ull Y ear 2009 firs t half of 2009. T he earnings before interest a nd ta x (E B IT ) went down to E UR 4 million from E U R 10. 4 million. T he group's net fina nc ia l
debt stood a t E UR 33. 1 million a t end-J une 2009 agains t E UR 31. 4 million a t end-D ecember 2008 and E UR 35. 2 million at end-Ma rc h 2009.
F or the full y ea r 2009, the c ompany rea ffirmed its ea rnings outlook. F or the yea r, the company expec ts a rev enue of E UR 160 mil lion. In
cas e of cons olida tion of D a da E nterta i nment as of J anua ry 1, 2009, the revenue is expec ted to rea ch some E UR 175 mill ion.
Changy ou.com Limited to R elea s e D uke of Mount Deer in Changy ou.com Limited a nnounc ed that it expl a ins why it decided to postpone the release of D uke of Mount D eer (D MD ). P reviously , the
2010 company pla nned to release DM D in the fourth quarter of 2009. However, beca us e of bitterer competition in the ma rket a nd the necess ity to
enrich the ga me's content, Changy ou.c om dec ided to ex tend its R &D to 35 months and releas e the game in the third quarter of 2010.
B esides , C ha ngyou. com will promote a s equel of B l ade O nline (B O ), a 2.5D online fi ghting ga me, in the third qua rter of 2009, a nd Immortal
F aith (I F ), a licensed 2D M MO R P G bas ed on a nc ient Chines e my ths and folk tales , in the fourth qua rter. A new expans ion pa ck of T ian L ong
B a B u (TL B B ) will als o be la unched in the fourth qua rter and the compa ny is preparing for a n open beta test of the game's E uropean version.
Cy berplex Inc. (T S X: C X ) made an offer to a cquire B urs t Cy berplex Inc. (TS X : C X ) made an offer to a cquire B urs t Med ia C orpora tion (AIM : B R S T ) for approxima tely £10 million in c ash on July 29,
Media C orporation (AIM : B R S T ) for a pproximately £10 2009. T he per s ha re cons ideration is £0. 12 repres enting a total equity v alue of approx imately $16. 5 million. T he B oard of D irectors of B urs t
million. Media rejected the proposa l despite subs tantia l support from B urs t s hareholders. T he proposal ha d the support of a pprox ima tely 40% of
B urst's sha res , or approximately 56% excluding sha res h eld by ma na gement of B urs t.
IAC /InterActiveC orp. a nnounc es an E quity B uy ba ck T he B oa rd of Directors of IAC /I nterAc tiveC orp (N asdaqN M: I AC I) a uthoriz ed a s hare repurc ha se progra m on J uly 29, 2009. Under the
program, I AC will repurchase up to 20,000, 000 s hares of its outsta nding common s toc k . IAC ma y purchase s hares over an indefinite period
of time, depending on thos e fa ctors I AC management de ems relev ant a t a ny particula r time, i ncluding, without l imitation, mark et c onditions ,
sha re price, and future outlook . As of June 30, 2009, I AC had app rox imately $1. 9 billi on in cas h an d ma rketa ble sec urities , and $95.8 million
in long-term debt.
B eyond Commerce I nc. E le cts B oa rd of Directors B eyond Commerce Inc . a nnounc ed tha t Annua l S ha reholders M eeting wa s held on July 24, 2009. The meeting elected the members of the
board of directors cons is ting of R obert J . M cN ulty , B arry F a lk, R onald L oveles s, M ich a el W ars insk e, and Murra y W illia ms.
IAC /InterActiveC orp. R eports U naudited C onsolidated IAC /I nterA ctiveC orp. reported unaudited c onsoli dated ea rnings resul ts for the sec ond quarter and s ix months ended J une 30, 2009. F or the
E a rnings R esults for the S econd Q ua rter a nd S ix M onths quarter, the c ompany reported earnings from c ontinuing opera tion s of $42,593, 000, or $0.29 per di luted sha re, net ea rnings of $40, 397,000,
E nded J une 30, 2009 net earnings attributable to I AC s ha reholders of $40, 813,000, or $0. 28 per diluted s ha re, ea rnings from continuing opera tions b efore income
tax es of $64,736, 000, opera ting inc ome of $3, 907, 000 on revenue of $340, 045,000 compared to los s from continuing opera tions of
$84,636, 000, or $0.60 per diluted s ha re, net los s of $422, 081, 000, net loss a ttributa ble to I AC s ha reholders of $421,597, 000, or $3.02 per
diluted sha re, loss from c ontinuing operations before income taxes of $106, 910,000, opera ting loss of $6,434, 000 on rev enue of
$354,164, 000 for the same period las t yea r. The company reported a djus ted net inc ome of $3, 270,000, or $0. 02 per s ha re compa red to
a djusted net income of $25,500, 000, or $0.17 per s hare for the same period las t y ear.
F or the six months, the compa ny reported ea rnings from continuing opera tions of $12, 711,000, or $0.09 per diluted share, net earnings of $11
S hutterfly Inc . R ep orts U na udited C ons olidated E arnings S hutterfly I nc . reported una udited c onsolidated ea rnings results for the s econd quarter and s ix months ended J une 30, 2009. F or the quarter,
R es ults for the S econd Q ua rter a nd S ix Months E nded the compa ny reported net los s of $5, 655, 000 or $0.22 per bas ic and diluted s hare on net revenues of $38,858, 000 compared to net loss of
J une 30, 2009; P rov ides E a rnings G uidance for the Thi rd $4,017, 000 or $0. 16 per ba sic and diluted s hare on net revenues of $35, 447,000 for the s a me period a y ear ago. T he company reported los s
Q uarter and Full Y ear of 2009 from opera tions of $9, 408, 000 a nd loss before income ta x es of $9,152 ,000 compared to loss from operations of $7, 939,0 00 a nd loss be fore
income taxes of $7,284, 000 for the sa me period a yea r a go. Adjus ted E B I TD A wa s $0. 2 million, compa red to $0. 4 million in the second
quarter of 2008. O n a N on-G AAP basis , the compan y reported opera ting los s of $6,090, 000 a nd net los s of $3, 527,0 00 or $0.14 per diluted
sha re compa red to opera ting los s of $5, 394,000 a nd net loss of $2, 891, 000 or $0.12 per diluted share for the s ame period a y ea r a go. F ree
cas h flows was nega tive $2,735, 000 compared to free ca s h flows wa s negative $4,835, 000 for the s a me period a year a go. P urchases of
property a nd equipment were $1,826, 000 compared to purc ha s es of property a nd equipment of $3, 840,000 for the s ame period a y ear ago.
W izz ard M edia La unches S ec ond P hase of P odc ast W izza rd M edia announced the la unch of the much a nticipated s ec ond pha s e of its new podca st network monetiz ation strategy with the
Monetization V ia Apps a pprova l of the Ha waii S urf S ess ion R eport App, the firs t W izz ard N etwork c ustomized P odca s t App currently for s a le through A pple's App
S tore. T he P odca s t App, developed by W iz zard Media , c an be c ustomized for a podca s t produc er in less tha n 30 minutes to inc lude bonus
ma teria l, s how extra s, interactive forms of communica tion between a udience a nd hos t, a s well a s other informa tion and entertainment.
W izza rd plans to offer its top 1, 000 podca st producers , bas ed on a udience s ize, a cus tomiz ed a pp; eventua lly opening this new produc t to
the thous a nds of podc as ts ac ross the W izz a rd N etwork. W iz zard will provide the P odc ast App a s a free tool to p odcas ters on the W iz za rd
Network a nd share in the revenue generated. All Apps submitted to the App S tore require App le approv al to be a vailabl e for s ale on a
worldwide ba s is a nd will generally rang e in price from $0.99 to $4. 99 ea ch.
O penwa ve S y stems Inc. R eports U na udited C onsolida ted O penwa ve S y stems Inc. reported una udited cons olida ted earnings res ults for the fourth qua rter and y ear ended J une 30, 2009. F or the
E a rnings R esults for the F ourth Q uarter and Y ear E nded quarter, the c ompany reported net los s from continuing opera tions and net los s of $3, 444,000 or $0. 04 per bas ic and diluted sha re on tota l
J une 30, 2009 revenues of $47, 937, 000 compa re d to net los s from continuing opera ti ons of $18,051, 000 or $0. 21 per ba s ic a nd diluted share and net
income of $2,157, 000 or $0. 03 per ba sic a nd diluted s ha re on total revenues of $53,487, 000 for the same period a yea r ago. T he c ompany
reported operating los s from continuing operations of $2, 365, 000 a nd pre-tax los s from continuing operations of $2,537, 000 c ompared to
opera ting loss from continuing operations of $15, 881,000 a nd pre-tax los s from continuing opera tions of $16,532, 000 for the same perio d a
yea r ago. O n a Non -G AAP ba s is , the compa ny reported net loss of $278,000 compared to net los s of $1,90 4,000 for the s a me period a y ea r
a go. Net c as h provided by opera ting activities was $4,477, 000 a nd purc ha ses of property a nd equipment, net of $1, 161, 000 c ompared to net
cas h us ed in operating activities wa s $14, 390, 000 a nd purcha s es of property a nd equipment, net of $1, 296, 000 for the s ame period a y ea r a go.
 Page 14

VALUATION
MMOG companies lead market-cap charts: Fifteen companies in our W eb 2.0 universe top US$1 billion in market
capitalization (Figure 14). Fifty-six of the 91 companies have market caps under US$100 million, with 26 under US$10
million. Online gaming companies dominate the top of the list.

Market C ap (US D m)
Tencent Holdings L td.
Neteas e.c om Inc .
S handa Interac tive Entertainment L td. 3332. 4
IA C/InterA c tiveCorp. 2787.4
Modern Times G roup Mtg A B 2448. 4
S ohu.c om Inc . 2358.2
Changyou.c om L imited 2041.6
Open Tex t Corp. 1997. 0
Giant Interactiv e Group, Inc . 1838. 4
Gree, Inc . 1807. 6
Perf ec t World Co., L td. 1743.2
Chines e Gamer International 1109.4
K ings of t Co. L td. 1096.9
Mix i, Inc . 1082. 6
V alueClick Inc . 1011.4
United Online Inc . 768.9
NEOWIZ Games Corporation 537.3
NetDragon WebS of t, Inc . 419.4
S hutterf ly, Inc . 411.7
CDC Corp. 324.7
S K Communic ations Co., L td. 316.5
Gamania Digital Entertainment Co. , 275. 8
GigaMedia L td. 265.5
GungHo Online Entertainment, Inc . 252.8
Openw ave S ys tems Inc . 222.4
The9 L imited 220.9
XING A G 213.9
A c toz S of t Co., L td. 167.2
OA O R B C Inf ormation S y s tems 145. 7
DA DA S pA 141.6
Tree.Com, Inc. 104.7
GameOn Co L td. 104.0
Cyberplex Inc. 102.6
Y edangOnline Corp. 102.0
NeuLion Incorporated 85.6
K A B Dis tribution Inc . 83.0
My riad G roup A G 82.4
HanbitS of t, Inc . 78.4
TheS treet.com, Inc . 64.3
S park Netw orks , Inc . 51.2
G eoS entric Oy j 51.1
Frogs ter Interactiv e Pictures A G 48.5
Eolith Co. L td. 48.0
PNI Digital Media Inc . 47.5
Fluid Mus ic Canada, Inc . 44.2
G ravity Co., L td 43.9
Ngi Group Inc . 42. 2
Webz en Inc . 40. 3
DigitalTow n, Inc . 38. 3
A Q Interactiv e, Inc . 34.7
S ocialw is e, Inc . 32.9
NeXplore Corporation 30.7
Northgate Tec hnologies L imited 28. 5
DXN Holdings B hd 26. 3
Dolphin Digital Media, Inc . 25. 3
Wiz z ard S of tw are Corporation 24. 4
Y nk K orea Inc . 23.3
L ookS mart, L td. 20.5
B roadWebA s ia Inc . 19.5
B eyond Commerc e, Inc . 17.2
A c celeriz e New Media, Inc . 15.5
J umbuck Entertainment Pty L td. 15.4
Quepas a Corp. 15.1
UOMO Media, Inc 14.6
L ingo Media Corporation 13.3
IA S Energy, Inc . 8. 0
S pectrumDNA , Inc . 6. 8
B right Things plc 5. 8
Worlds .c om Inc . 5. 2
V OIS , Inc . 5. 0
MOK O. mobi L imited 4. 7
DigitalPos t Interactiv e, Inc . 4. 0
is eemedia Inc . 3. 8
Ex tens ions , Inc . 3. 6
CornerW orld Corporation 3. 2
Magnitude Inf ormation S ys tems Inc. 2. 7
Wooz yFly, Inc . 2. 6
S NA P Interactiv e, Inc . 2. 2
B etaw av e Corporation 2. 0
Wy nds torm Corporation 1. 8
B igs tring Corp. 1. 4
L iveWorld Inc . 1. 1
Unis erve Communic ations Corp. 1. 0
A s s oc iated Media Holdings Inc . 0. 6
CLICK ER Inc . 0. 4
The Parent Company 0. 4
China G atew ay Corporation 0. 3
Total S port Online A S 0. 1
S NM Global Holdings 0. 0
S ocial 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 14. Market Cap Ranking

Source. Capital IQ
 Page 15

TEV/Revenue (LTM) averages 4.9x: The overall average TEV/Revenue (LTM) multiple for our group is 5.8x (up from 4.9x
last week) (Figure 15). However, this is skewed by three companies with multiples greater than 30x trailing revenue:
NeXplore Corporation (NXPC:OTCBB) at 49.2x, Bigstring Corporation (BSGC:OTCBB) at 37.4x and Dolphin Digital
(OTCBB: DPDM) at 34.0x. The median is only 2.0x. Note that we exclude multiples greater than 50x. Twenty-six
companies have multiples under 1.5x

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

60. 0

49.2
50. 0

40. 0 37.4
34.0

30. 0
23.5
22.2
20.9
18.5
20. 0
15.6
14.3
12.7

8.4
10. 0
A v erage, 5. 8 6.8 7.3 7.6 7.7 7.8
5.0
3.6 3.8 3.9 4.6 4.6 4.6
2.6 2.6 2.9 3.0 3.0 3.1 3.3 3.3
0.4 0.4 0.5 0.5 0.6 0.6 0.7 0.8 0.9 0.9 1.0 1.1 1.1 1.2 1.3 1.3 1.4 1.5 1.6 1.6 1.7 1.8 2.0 2.0 2.1 2.3 2.3
0.1 0.2 0.2 0.2 0.2 0.2
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

NeX plore 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.

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 15. 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 16 shows the average TEV/Revenue multiples by stock exchange. The OTCBB has the largest
number of companies (19), trading at an average multiple of 12.7x (down from 13.9x last week). On a geographic basis,
the United States has the most companies (39), trading at an average of 7.8x revenue (up from 5.2x last week) (Figure
17). Ten of the companies are Canadian (average 5.5x revenue).

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

25.0 25.0
20.9 20.9
20.0 20.0
12.7
15.0 11.8 15.0
(x)

11.3
(x)

10.0 10.38.6 8.6

10.0 7.8
7.8 7.8 7.6
4.6 4.23.3 2.8 7.2
5.0 2.3 2.1 2.0 2.0 1.8 1.6 5.5 4.6
2.0 5.0
0.8 0.5 2.3
0.0 0.4 0.20.0 2.1 2.0 1.8 1.6
0.9 0.8
OTCNO
OTCPK
OTCBB

GTSM

NasdaqGM
SEHK

HLSE

OSE
TSE
KOSE
NasdaqGS

RTS
OM
CM

0.5 0.2 0.0

XTRA

TSX
AMEX

KLSE

BSE
AIM

TSXV

SWX

0.0
ASX

Germany
United

United

Finland
China

Canada

Japan

Hong Kong

Malaysia
India
Russia
Italy
South
Taiwan

Australia
Norway

Switzerland

Sweden

# Companies 1 19 11 3 2 2 1 1 4 4 2 1 1 5 6 14 2 1 1 1 5 1 1

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

Figures 16 & 17. TEV/Revenue Ranking (Exchange, Country)

Source. Capital IQ
 Page 16

TEV/EBITDA (LTM) averages 10.9x: The average multiple for the 33 companies with positive EBITDA (and multiples
under 100x) is 10.9x LTM EBITDA (up from 10.0x last week), led by Tencent Holdings Ltd.’s (700-SEHK) 45.8x multiple
(Figure 18). Twelve of the companies have EBITDA multiples under 7x. The median multiple is 9.6x (vs. 9.4x last week).

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

50. 0
45. 8
45. 0

40. 0

35. 0 33. 1

30. 0
25. 8
25. 0
20. 9 21. 2 21. 3
20. 0

15. 0 12. 1 12. 6 12. 7

A verage, 10. 9 11. 0 11.5 12.0
8. 9 9. 3 9. 6 9. 7 9. 7 10. 3 10. 4
8. 4 8. 6
10. 0 6. 7
5. 5 5. 9
3. 7 4. 4
5. 0 1.8 2. 3
0. 7 0.8 1.3
0. 1 0. 2
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
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 enc ent 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 18. TEV/EBITDA Ranking

Source. Capital IQ

TEV/EBITDA (LTM) by country/exchange: Figure 19 shows the average TEV/EBITDA multiples by stock exchange. The
OTCBB has the largest number of companies (19). On a geographic basis, the United States has the most companies
(39), trading at an average of 8.9x EBITDA (Figure 20). Ten of the companies are Canadian (average 10.9x EBITDA).

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

30.0 25.0 25.0
22.6
25.0
20.0
20.0 22.6
16.1
15.0
(x)

15.0 12.9 12.9

(x)

11.5 11.2 11.0 10.9 10.3

10.0 10.3 10.2 9.6 10.0 9.6
6.3 5.5 8.9 7.3
4.4 3.7
5.0 1.8 0.7 0.2 5.5
0.0 0.0 5.0 3.7
0.0 0.2
1.8
OTCBB
GTSM
SEHK

KOSE

OSE

NasdaqGS

TSE

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

Figures 19 & 20. TEV/EBITDA Ranking (Exchange, Country)

Source. Capital IQ
 Page 17

P/E (LTM) averages 16.7x: The average multiple for the 30 companies with positive earnings (and multiples under 100x)
is 10.0x LTM EPS (from 16.7x last week), led by Tencent Holdings Ltd.’s (700-SEHK) 58.4x multiple (Figure 21). Ten of
the companies have P/E multiples under 10x. The median is just 13.9x.

P /E L T M (x)

70.0

58.4
60.0
53.2

50.0
42.8

40.0
34.1
31.2
28.7 29.3
30.0
23.6 23.7 24.4 24.7
19.9
20.0 15.7
13.8 14.0 15.0
12.0 12.3
A verage, 10.0 9.5 10.5 10.6
10.0 6.1
3.3 3.3 4.6
2.0 2.5 2.7 3.0
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 21. P/E Ranking

Source. Capital IQ

P/E (LTM) by country/exchange: Figure 22 shows the average P/E multiples by stock exchange. The OTCBB has the
largest number of companies (19), trading at an average multiple of 18.7x. On a geographic basis, the United States has
the most companies (39), trading at an average of 19.2x earnings (Figure 23). Ten of the companies are Canadian
(average 20.3x EPS).

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

40.0 35.0 32.6
36.1
35.0 30.0
30.0 32.7 32.6
25.0 27.5
25.0 23.6 23.6
21.2 20.0 20.3
(x)

20.0 19.9 18.7 19.9 19.2

(x)

15.0 15.7 15.0 15.9 13.9

12.3 11.6
10.0 9.5 12.3
6.1 10.0
4.6
5.0 2.0 6.1
5.0 4.6
0.0 0.0
OTCBB
GTSM

NasdaqGM
SEHK

TSE

KOSE

NasdaqGS
CM

OM
XTRA

AMEX

TSX

KLSE

NYSE
ASX

0.0 0.0
Germany
Japan

Canada

United

China

Malaysia
Italy

South
Korea
States
Taiwan

Australia
Sweden

Switzerland

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

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

Figures 22 & 23. P/E Ranking (Exchange, Country)

Source. Capital IQ
 Page 18

UPCOMING EVENTS
E arnings Calendar
C ompany D ate & T ime Qu arter C onf C all D etails
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
C yberplex I nc . (TS X : C X ) T hursda y , Augus t 06, 2009 4:30 P M (E DT ) Q 2 2009 800-501-6064
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 24. Earnings Calendar

Source. Company reports
 Page 19

C omparable C ompany Analys is > Web 2.0

Pric e P erformanc e
C ompany Name C urrenc y Tic ker E xc hange US D Market C ap ($m) C urrent P ric e 1 Wk 1 Mth 3 Mth 6 Mth 1 Yr 52 Week

A ccelerize New Media, Inc. US D AC L Z OT C B B 15.5 0.56 -1.8% 40.0% 27.3% 60.0% -13. 8% -15.2%
A ctoz S oft C o. , L td. KR W A052790 K OS E 167.2 23, 700 -6.7% -0.4% 67.5% 110.7% 191. 9% -34.2%
A Q Interactive, Inc. JPY 3838 TS E 34.7 60, 400 -1.5% -13.3% 28.6% 72.6% -60. 0% -61.8%
A s s ociated Media H oldings Inc. US D AS MH OT C P K 0.6 0.01 -30.0% -30.0% 833.3% 180.0% -30. 0% -72.0%
B igs tring C orp. US D BSGC OT C B B 1.4 0.03 -8.5% -15.6% 35.0% 58.8% -68. 2% -73.0%
B eta wave C orpora tion US D B W AV OT C B B 2.0 0.07 -36.4% -12.5% -36.4% -65.0% -72. 0% -79.5%
B eyond C ommerce, Inc. US D B Y OC OT C B B 17.2 0.38 5. 8% -13.4% -73.4% -57.7% -87. 9% -88.5%
B right T hings plc GB P AIM:B G T A IM 5.8 0.02 -5.1% 18.7% -20.9% 40.2% 7.9% -28.8%
B roadW ebA s ia Inc. US D BWBA OT C P K 19.5 0.23 -22.8% -22.8% -54.9% -77.2% -84. 7% -92.1%
C DC C orp. US D C H IN.A Nas da qG S 324.7 3.06 -4.1% 97.4% 155.0% 287.3% 12.5% -21.9%
C ha ngyou.com Limited US D C Y OU Nas da qG S 2, 041.6 37.12 -10.9% -9.3% 15.5% NM NM -23.3%
C hina G a tewa y C orporation US D CGWY OT C P K 0.3 0.02 -25.0% 650.0% 650.0% 650.0% -50. 0% -57.1%
C hines e G a mer International TWD G T S M:3083 GTS M 1, 109.4 433.00 -4.4% -0.9% 92.9% 379.5% 463. 9% -16.6%
C LIC K E R Inc. US D CLK Z OT C B B 0.4 0.01 -41.2% 85.2% 11.1% -83.3% -99. 3% -99.4%
C ornerW orld C orpora tion US D CW R L OT C B B 3.2 0.05 0. 0% -16.7% -50.0% -87.8% -87. 5% -93.7%
C yberplex Inc. C AD T S X: C X TS X 102.6 1.70 -2.9% 3.0% 14.1% 385.7% 261. 7% -14.6%
DADA S pA E UR C M:DA CM 141.6 6.14 0. 6% -1.9% -7.9% 2. 3% -43. 7% -50.7%
DXN Holdings B hd MY R DXN K LS E 26.3 0.40 1. 3% 3.9% 1.3% 12.7% -7.0% -10.1%
Dibz Interna tional, Inc. US D DIB Z OT C P K 0.0 0.00 -90.0% -90.0% -90.0% -98.0% -98. 0% -98.0%
DigitalP os t Intera ctive, Inc. US D DG LP OT C B B 4.0 0.05 -11.5% 63.6% 217.6% 170.0% -32. 5% -46.0%
DigitalT own, Inc. US D DG T W OT C B B 38.3 1.40 -30.0% -31.7% -40.4% -53.3% -60. 0% -77.0%
Dolphin Digital Media, Inc. US D DP DM OT C B B 25.3 0.49 36.1% 0.0% -16.9% -30.0% NM -56.6%
E olith C o. L td. KR W A041060 K OS E 48.0 810.00 3. 2% 11.7% -8.5% 57.3% -3.0% -30.2%
E xtens ions , Inc. US D E XT I OT C P K 3.6 0.08 -60.0% -46.7% -46.7% -84.6% NM -92.1%
F luid Mus ic C anada, Inc. C AD T S X: F MN TS X 44.2 0.91 2. 2% 15.2% 65.5% 127.5% -43. 1% -49.4%
F rogs ter Intera ctive P ictures AG E UR FR G XT R A 48.5 13.50 12.2% 19.2% 49.2% 173.3% 162. 6% -3.6%
G amania Digita l E ntertainment C o., L td. TWD 6180 GTS M 275.8 59.60 -2.9% 2.6% 72.5% 176.6% 148. 5% -13.4%
G ameO n C o L td. JPY 3812 TS E 104.0 101, 900 -4.8% -10.2% 5.5% -16.1% -31. 6% -37.7%
G eoS entric Oyj E UR G E O1V H LS E 51.1 0.04 33.3% 0.0% 0.0% 33.3% -42. 9% -42.9%
G ia nt Interactive G roup, Inc. US D GA NY S E 1, 838.4 8.14 -0.4% -0.1% -2.4% 35.7% -4.6% -24.5%
G igaMedia L td. US D G IG M Nas da qG S 265.5 4.87 -2.2% -15.6% -15.9% -25.9% -59. 2% -63.6%
G ra vity C o., Ltd US D GR VY Nas da qG M 43.9 1.58 2. 6% 45.0% 61.2% 120.1% 9.7% -20.6%
G ree, Inc. JPY T S E :3632 TS E 1, 807.6 7, 650 11.4% 6.0% 38.6% 26.2% NM -3.2%
G ungH o Online E ntertainment, Inc. JPY 3765 OS E 252.8 209, 000 -1.9% -21.3% 51.8% 96.1% 5.6% -25.3%
H anbitS oft, Inc. KR W A047080 K OS E 78.4 4, 370 -2.9% -0.6% -2.6% 39.4% 10.6% -34.2%
IAC /InterA ctiveC orp. US D IA C I Nas da qG S 2, 787.4 18.47 3. 1% 13.6% 15.2% 25.6% -48. 7% -63.4%
IAS E nergy, Inc. US D IA S C . A OT C B B 8.0 0.11 -24.0% -33.3% -52.5% 280.0% -54. 4% -59.3%
is eemedia Inc. C AD IE E T S XV 3.8 0.08 -5.9% 6.7% -20.0% 0. 0% -60. 0% -68.0%
J umbuck E ntertainment P ty Ltd. AU D AS X: J MB AS X 15.4 0.38 8. 6% -2.6% -18.3% -20.8% -29. 6% -38.7%
K AB Dis tribution Inc. C AD T S X: K AB TS X 83.0 1 0. 0% 1.6% 8.5% 40.7% -8.6% -29.7%
K ings oft C o. L td. HK D 3888 S E HK 1, 096.9 8 9. 2% 44.7% 121.8% 186.8% 140. 2% -3.1%
L ingo Media C orpora tion C AD T S XV :LM T S XV 13.3 1.15 4. 5% -4.2% 30.7% 9. 5% -34. 7% -40.1%
L iveW orld Inc. US D LV W D OT C P K 1.1 0.04 -12.5% -30.0% -73.1% -30.0% -82. 5% -86.0%
L ookS mart, L td. US D LO OK Nas da qG M 20.5 1.20 0. 8% 0.0% -5.5% -12.4% -58. 5% -64.4%
Ma gnitude Information S ys tems Inc. US D MAG Y OT C B B 2.7 0.01 -20.0% -35.5% -40.0% -75.1% -70. 0% -80.0%
Mixi, Inc. JPY 2121 TS E 1, 082.6 667,000.00 -4.0% 16.8% 47.2% 30.8% 0.2% -27.6%
Modern T imes G roup Mtg AB SEK MT G B OM 2, 448.4 269.00 6. 7% 15.5% 22.0% 88.1% -25. 3% -31.1%
MO K O .mobi L imited AU D MK B AS X 4.7 0.07 -13.3% -13.3% -12.2% 30.0% 58.5% -35.0%
Myriad G roup AG C HF MY R N S WX 82.4 4.14 -4.8% -17.0% -9.0% -24.7% -58. 4% -58.6%
NE O W IZ G ames C orporation KR W A095660 K OS E 537.3 31,200.00 1. 0% -1.4% 3.8% 169.0% 165. 5% -25.7%
NetDra gon W ebS oft, Inc. HK D 777 S E HK 419.4 6.15 1. 5% 21.5% 17.6% 126.1% -31. 8% -33.9%
Netea s e. com Inc. US D NT E S Nas da qG S 5, 670.2 44.15 4. 7% 27.5% 47.3% 132.2% 81.9% -1.5%
NeuLion Incorpora ted C AD T S X: NL N TS X 85.6 0.81 -1.2% 11.0% 50.0% 113.2% NM -25.7%
NeXplore C orpora tion US D NXP C OT C P K 30.7 0.55 0. 0% -21.4% 22.2% -38.9% 0.0% -62.1%
Ngi G roup Inc. JPY 2497 TS E 42.2 32,250.00 -3.4% -10.5% -12.4% -15.8% -59. 3% -74.7%
Northgate T echnologies Limited INR 590057 BSE 28.5 39.15 5. 0% 1.6% -1.6% 0. 4% -87. 1% -87.5%
O pen T ext C orp. US D OT E X Nas da qG S 1, 997.0 37.95 -1.5% 3.1% 15.3% 8. 3% 26.5% -2.9%
O penwa ve S ys tems Inc. US D OP W V Nas da qG S 222.4 2.67 -10.1% 17.1% 122.5% 265.8% 105. 4% -14.7%
P erfect W orld C o., Ltd. US D PWRD Nas da qG S 1, 743.2 35.84 2. 5% 19.0% 97.9% 142.0% 34.0% -3.7%
P NI Digital Media Inc. C AD T S XV :P N T S XV 47.5 1.50 0. 0% NM 0.0% -10.2% -55. 8% -58.6%
Q uepa s a C orp. US D QP S A OT C B B 15.1 1.19 20.2% 32.2% 48.8% -35.3% -53. 1% -65.6%
O AO R B C Information S ys tems US D R BCI R TS 145.7 1.05 0. 0% 16.7% 6.6% 238.7% -86. 2% -86.6%
S ha nda Interactive E nterta inment L td. US D S NDA Nas da qG S 3, 332.4 49.91 -12.4% -8.0% -0.6% 71.5% 78.6% -23.2%
S hutterfly, Inc. US D S F LY Nas da qG S 411.7 16.20 3. 3% 16.9% 31.3% 145.1% 77.8% 0.7%
S K C ommunications C o. , L td. KR W A066270 K OS E 316.5 9,230.00 -2.7% -6.4% -5.0% 24.7% -37. 2% -39.3%
S NA P Intera ctive, Inc. US D S TVI OT C B B 2.2 0 -55.6% -69.2% -69.2% -80.0% -63. 6% -81.5%
S NM G loba l H oldings US D S NMN OT C P K 0.0 0.01 25.0% -28.6% 25.0% 400.0% -99. 6% -99.7%
S ocial Media V enures , Inc. US D S MV I OT C P K 0.0 0.40 25.0% 1900. 0% 3900. 0% -70.4% 60.0% -92.0%
S ocialwis e, Inc. US D S CLW OT C B B 32.9 0.76 -0.6% 26.5% 110.8% 68.7% -66. 3% -71.9%
S ohu.com Inc. US D S O HU Nas da qG S 2, 358.2 61.63 -3.1% -1.7% 8.6% 55.8% -18. 3% -30.0%
S pa rk Networks , Inc. US D LO V A ME X 51.2 2 4. 6% 5.1% -4.6% 1. 6% -41. 0% -44.2%
S pectrumDNA, Inc. US D S P XA OT C B B 6.8 0 -6.7% -39.1% -33.3% 40.0% NM -76.7%
T encent H oldings Ltd. HK D 700 S E HK 24,360. 7 105 1. 1% 15.6% 51.6% 116.1% 55.9% -2.2%
T he P a rent C ompany US D K IDS . Q OT C P K 0.4 0.02 -25.0% -50.0% 20.0% -50.0% -99. 3% -99.3%
T he9 L imited US D NC T Y Nas da qG S 220.9 8.66 -3.6% -11.2% -7.4% -42.7% -64. 4% -66.3%
T heS treet.com, Inc. US D TS CM Nas da qG M 64.3 2.10 1. 9% 1.9% 2.9% -23.1% -66. 2% -71.4%
T ota l S port Online A S NO K T OS O O T C NO 0.1 0.03 0. 0% 0.0% 0.0% -25.0% -40. 0% -40.0%
T ree.C om, Inc. US D TR E E Nas da qG M 104.7 9.70 -9.3% 1.6% 8.4% 144.3% NM -25.8%
U nis erve C ommunica tions C orp. C AD T S XV :US S T S XV 1.0 0.05 -55.0% -43.8% 12.5% -43.8% -77. 5% -82.0%
U nited O nline Inc. US D UNT D Nas da qG S 768.9 9.20 3. 7% 38.6% 74.9% 50.3% -17. 4% -24.9%
U OMO Media, Inc US D UO MO OT C B B 14.6 0.17 65.9% 21.4% 70.0% 112.5% -62. 2% -84.0%
V alueC lick Inc. US D V CLK Nas da qG S 1, 011.4 11.63 -1.6% 8.0% 11.0% 86.1% -1.9% -16.9%
V OIS , Inc. US D V O IS OT C B B 5.0 0.01 -14.3% -49.6% 87.5% -20.0% -85. 3% -85.9%
W ebzen Inc. US D W ZE N Nas da qG M 40.3 3.40 -2.7% 0.0% 23.6% 117.9% 28.8% -27.3%
W izzard S oftwa re C orporation US D W ZE A ME X 24.4 0.51 4. 1% 0.0% -10.5% -28.2% -65. 3% -71.0%
W orlds .com Inc. US D W DDD OT C B B 5.2 0.10 -9.1% -33.3% -41.2% -54.5% -72. 2% -73.7%
W oozyF ly, Inc. US D W ZY F OT C B B 2.6 0.15 0. 0% NM 0.0% 0. 0% NM -96.3%
W ynds torm C orpora tion US D W Y ND OT C P K 1.8 0.10 0. 0% 150.0% 11.1% -20.0% -83. 3% -83.3%
XING A G E UR O1B C XT R A 213.9 28.50 -3.5% -6.2% -5.0% -6.6% -5.0% -20.8%
Y eda ngOnline C orp. KR W A052770 K OS E 102.0 7, 940 -1.0% -8.5% -9.9% 9. 1% -12. 6% -36.0%
Y nk K orea Inc. KR W A023770 K OS E 23.3 5, 330 -8.1% -21.4% -11.6% 38.1% -43. 1% -57.0%
H igh 65.9% 1900. 0% 3900. 0% 650.0% 463. 9% 0.7%
L ow -90.0% -90.0% -90.0% -98.0% -99. 6% -99.7%
Average 678.1 -4.5% 29.7% 74.7% 58.6% -10.7% -49.4%
Media n -1.6% 0.0% 8.5% 30.0% -35. 9% -45.1%

Figure 25. Price Performance

Source. Capital IQ
 Page 20

C omparable C ompany Analys is > Web 2.0

Valuation Multiples
P rimary US D Market TE V/L TM TE V/ NTM TE V/L TM TE V/NTM
C ompany Name S ec tor C ountry E xc hange Ticker C ap ($m) R evenue R evenue E B ITDA E B ITDA P /L TM E P S P /NTM E P S P /TangB V
Accelerize New Media, Inc. Direct Marketing U nited S ta tes OTCB B AC LZ 15.5 5.0x - - - - - -
Actoz S oft C o., Ltd. G aming S outh K orea K OS E A052790 167.2 1.4x - 6. 7x - 24.4x - 2.8x
AQ Intera ctive, Inc. G aming J apan TS E 3838 34.7 0.1x - 1. 3x - - - 0.5x
As s ocia ted Media Holdings Inc. Mobile U nited S ta tes OTCP K AS MH 0.6 15.6x - - - - - -
B igs tring C orp. Ins ta nt Mes s aging U nited S ta tes OTCB B BSGC 1.4 37.4x - - - - - -
B etawave C orpora tion Media U nited S ta tes OTCB B B W AV 2.0 - - - - - - 0.3x
B eyond C ommerce, Inc. S ocial Networking U nited S ta tes OTCB B B YOC 17.2 3.1x - - - - - -
B right T hings plc S ocial Networking U nited K ingdom AIM AIM:B G T 5.8 20.9x - - - - - -
B roadW ebAs ia Inc. S ocial Networking U nited S ta tes OTCP K BWBA 19.5 - - - - - - -
C DC C orp. G aming H ong K ong N as da qG S C HIN.A 324.7 0.9x 0.9x 11.0x 13.5x - 32.2x -
C hangyou.com Limited G aming C hina N as da qG S C Y OU 2,041.6 7.3x 6.0x 12.0x 10.4x 14.0x 13.4x 13.9x
C hina G atewa y C orpora tion Mobile U nited S ta tes OTCP K CGW Y 0.3 0.0x - - - - - -
C hines e G amer Interna tional G aming T a iwa n GTS M G T S M:3083 1,109.4 18.5x - 33.1x - 42.8x - 16.1x
C L IC K E R Inc. Direct Marketing U nited S ta tes OTCB B C LK Z 0.4 0.2x - - - - - -
C ornerW orld C orporation C ontent U nited S ta tes OTCB B CW R L 3.2 3.6x - - - - - -
C yberplex Inc. A dvertis ing C ana da TS X T S X: C X 102.6 1.3x - 12.6x 8.3x 9.5x 10.9x 9.4x
DA DA S pA S ocial Networking Italy CM C M:DA 141.6 0.8x - 5. 5x - 23.6x - -
DXN Holdings B hd S ocial Networking Mala ys ia K LS E DXN 26.3 0.5x - 3. 7x - 4.6x - 0.6x
Dibz Interna tiona l, Inc. S NS Apps U nited S ta tes OTCP K DIB Z 0.0 - - - - - - -
DigitalP os t Interactive, Inc. C ontent U nited S ta tes OTCB B DG L P 4.0 7.7x - - - - - -
DigitalT own, Inc. S ocial Networking U nited S ta tes OTCB B DG T W 38.3 - - - - - - -
Dolphin Digital Media, Inc. S ocial Networking U nited S ta tes OTCB B DP DM 25.3 34.0x - - - - - -
E olith C o. L td. G aming S outh K orea K OS E A041060 48.0 3.3x - - - - - 4.5x
E xtens ions , Inc. C ontent U nited S ta tes OTCP K E XT I 3.6 - - - - - - -
F luid Mus ic C a nada, Inc. Media U nited S ta tes TS X T S X:F MN 44.2 6.8x 4.5x - - - - 4.2x
F rogs ter Interactive P ictures A G G aming G erma ny XT R A FR G 48.5 14.3x - - - - - 6.6x
G amania Digital E ntertainment C o., Ltd. G aming T a iwa n GTS M 6180 275.8 2.0x - 12.1x - 29.3x - 3.6x
G ameO n C o Ltd. G aming J apan TS E 3812 104.0 0.5x - 2. 3x - 12.0x - 1.4x
G eoS entric Oyj Mobile F inland H LS E G E O1V 51.1 7.8x - - - - - 8.6x
G iant Interactive G roup, Inc. G aming C hina NY S E GA 1,838.4 - - - - 2.0x 13.5x 0.4x
G igaMedia Ltd. G aming T a iwa n N as da qG S G IG M 265.5 1.0x 1.0x - 4.9x 10.5x 9.8x 2.3x
G ravity C o., Ltd G aming S outh K orea N as da qG M GR VY 43.9 - - - - 0.0x - 0.0x
G ree, Inc. S ocial Networking J apan TS E T S E : 3632 1,807.6 - - - - - - 22.2x
G ungH o O nline E nterta inment, Inc. Media J apan OS E 3765 252.8 2.1x - 11.5x - - - 35.5x
Ha nbitS oft, Inc. G aming S outh K orea K OS E A047080 78.4 1.1x - - - - - 2.3x
IAC /InterActiveC orp. Media U nited S ta tes N as da qG S IAC I 2,787.4 0.6x 0.7x 21.2x 5.8x 23.7x 42.1x 1.2x
IAS E nergy, Inc. V ideo C ana da OTCB B IAS C .A 8.0 - - - - - - -
is eemedia Inc. C ontent C ana da T S XV IE E 3.8 1.8x - - - - - 3.1x
J umbuck E ntertainment P ty L td. S ocial Networking Aus tra lia AS X AS X:J MB 15.4 0.7x - 1. 8x - 6.1x - 1.5x
K A B Dis tribution Inc. C ontent C ana da TS X T S X:K AB 83.0 1.2x 1.1x 9. 7x 6.0x - - -
K ings oft C o. Ltd. G aming C hina S E HK 3888 1,096.9 8.4x - 20.9x - 24.7x - 5.9x
Lingo Media C orpora tion L earning C ana da T S XV T S XV : LM 13.3 12.7x - - - - - 13.4x
LiveW orld Inc. S ocial Networking U nited S ta tes OTCP K LV W D 1.1 - - - - - - 0.5x
LookS ma rt, L td. Direct Marketing U nited S ta tes N as da qG M L OOK 20.5 - - - - - - 0.8x
Magnitude Information S ys tems Inc. S ocial Networking U nited S ta tes OTCB B MA G Y 2.7 - - - - - - -
Mixi, Inc. S ocial Networking J apan TS E 2121 1,082.6 7.6x - 21.3x - 53.2x - 7.9x
Modern T imes G roup Mtg AB Media S weden OM MT G B 2,448.4 1.6x 1.5x 10.3x 11.6x 12.3x 13.4x -
MOK O .mobi Limited S ocial Networking Aus tra lia AS X MK B 4.7 2.9x - - - - - 3.4x
Myriad G roup AG Mobile S witzerla nd SWX MY R N 82.4 2.3x - - - - - 3.7x
NE OW IZ G ames C orporation G aming S outh K orea K OS E A095660 537.3 2.6x - 9. 7x - 28.7x - 14.5x
NetDra gon W ebS oft, Inc. G aming C hina S E HK 777 419.4 3.3x - 8. 4x - 15.0x - 2.3x
Netea s e.com Inc. G aming C hina N as da qG S NT E S 5,670.2 - - - - 3.3x 19.4x 1.0x
NeuLion Incorporated V ideo C ana da TS X T S X:NL N 85.6 3.9x 4.0x - - - - 4.8x
NeXplore C orporation C ontent U nited S ta tes OTCP K NXP C 30.7 49.2x - - - - - -
Ngi G roup Inc. Media J apan TS E 2497 42.2 0.0x - 0. 1x - - - 0.9x
Northgate T echnologies Limited Direct Marketing India BS E 590057 28.5 0.2x - - - - - -
O pen T ext C orp. C ollabora tion C ana da N as da qG S OT E X 1,997.0 2.6x - 10.4x 8.0x 31.2x - -
O penwave S ys tems Inc. Mobile U nited S ta tes N as da qG S OP W V 222.4 0.6x 0.7x - 6.5x - 43.8x 3.2x
P erfect W orld C o., Ltd. G aming C hina N as da qG S PWRD 1,743.2 0.4x 2.2x 0. 8x 4.2x 3.0x 13.7x 1.2x
P N I Digital Media Inc. Digita l Ima ging C ana da T S XV T S XV :P N 47.5 2.3x 1.6x - 4.7x - - 18.8x
Q uepa s a C orp. S ocial Networking U nited S ta tes OTCB B QP S A 15.1 - - - - - - -
O AO R B C Information S ys tems Media R us s ia R TS R BCI 145.7 0.0x - 0. 2x - - - -
S handa Interactive E nterta inment Ltd. G aming C hina N as da qG S S NDA 3,332.4 - - - - 2.7x 13.9x 1.1x
S hutterfly, Inc. Digita l Ima ging U nited S ta tes N as da qG S S FLY 411.7 1.6x 1.6x 12.7x 8.4x - - 2.5x
S K C ommunications C o., Ltd. S earch S outh K orea K OS E A066270 316.5 1.7x - 25.8x - - - -
S N AP Interactive, Inc. Dating U nited S ta tes OTCB B S TVI 2.2 0.2x - 0. 7x - 3.3x - 1.3x
S N M G lobal Holdings Media U nited S ta tes OTCP K S NMN 0.0 1.1x - - - - - -
S ocial Media V enures , Inc. S ocial Networking U nited S ta tes OTCP K S MV I 0.0 4.6x - - - - - -
S ocialwis e, Inc. S ocial Networking U nited S ta tes OTCB B S CLW 32.9 - - - - - - 42.8x
S ohu.com Inc. G aming C hina N as da qG S S O HU 2,358.2 3.8x 3.5x 8. 9x 7.7x 13.8x 17.8x 4.6x
S park N etworks , Inc. S ocial Networking U nited S ta tes AME X L OV 51.2 0.9x - 4. 4x - 15.7x - -
S pectrumDN A, Inc. Media U nited S ta tes OTCB B S P XA 6.8 - - - - - - 17.8x
T encent Holdings Ltd. P orta l C hina S E HK 700 24,360.7 22.2x - 45.8x - 58.4x - 24.4x
T he P a rent C ompany Media U nited S ta tes OTCP K K IDS .Q 0.4 0.2x 0.2x - 12.9x - - -
T he9 L imited G aming C hina N as da qG S NC T Y 220.9 - - - - 2.5x 11.9x 0.1x
T heS treet.com, Inc. Media U nited S ta tes N as da qG M TS CM 64.3 - - - - - - 0.8x
T otal S port Online AS Media N orway O T C NO T OS O 0.1 4.6x - - - - - -
T ree.C om, Inc. P orta l U nited S ta tes N as da qG M TREE 104.7 0.4x 0.4x - 5.0x - 28.4x 1.4x
Unis erve C ommunications C orp. S ocial Networking C ana da T S XV T S XV :US S 1.0 0.2x - - - - - -
United Online Inc. Media U nited S ta tes N as da qG S U NT D 768.9 1.3x 1.1x 5. 9x 4.4x - 12.3x -
UO MO Media, Inc Media C ana da OTCB B UO MO 14.6 23.5x - - - - - -
V a lueC lick Inc. Media U nited S ta tes N as da qG S V CLK 1,011.4 1.5x 1.7x 8. 6x 6.6x - 18.2x 8.2x
V O IS , Inc. S ocial Networking U nited S ta tes OTCB B V OIS 5.0 - - - - - - 17.1x
W ebzen Inc. G aming S outh K orea N as da qG M W ZE N 40.3 - - - - - - 0.0x
W izzard S oftware C orporation P odca s ting U nited S ta tes AME X W ZE 24.4 4.6x - - - - - -
W orlds .com Inc. C ontent U nited S ta tes OTCB B W DDD 5.2 - - - - 34.1x - -
W oozyF ly, Inc. S ocial Networking U nited S ta tes OTCB B W ZY F 2.6 - - - - - - -
W ynds torm C orporation C ontent U nited S ta tes OTCP K W Y ND 1.8 - - - - - - -
XIN G AG S ocial Networking G erma ny XT R A O1B C 213.9 3.0x - 9. 6x - 19.9x - 6.7x
Y eda ngO nline C orp. G aming S outh K orea K OS E A052770 102.0 2.0x - 9. 3x - 10.6x - 3.7x
Y nk K orea Inc. G aming S outh K orea K OS E A023770 23.3 3.0x - - - - - 1.1x
High 24,360.7 49.2x 6.0x 45.8x 13.5x 58.4x 43.8x 42.8x
Low 0.0 0.0x 0.2x 0. 1x 4.2x 0.0x 9.8x 0.0x
Average 678.1 5.8x 1.9x 10.9x 7.6x 17.8x 19.7x 6.8x
Median 44.1 2.0x 1.5x 9. 6x 6.6x 13.9x 13.8x 3.3x

Figure 26. Valuation Comparison

Source. Capital IQ
 Page 21

C omparable C ompany Analys is > Web 2.0

S ummary by C ountry
C ompany Name US D Market C ap ($m) Avg US D Market C ap ($m) US D L TM Total R ev ($m) US D L TM Total E B ITDA ($m) E B ITDA %

United S tates 39 C hina 43, 082. 0 C hina 4,308. 2 C hina 3,884. 0 C hina 1, 802. 5 C hina 48. 0%
C a na da 10 U nited S ta tes 5, 749. 2 S weden 2,448. 4 United S tates 3,795. 0 S weden 291. 3 A us tralia 37. 2%
C hina 10 J a pan 3, 323. 8 J apan 554. 0 S weden 1,896. 1 United S tates 240. 2 T aiwan 36. 3%
S outh K orea 8 S weden 2, 448. 4 T aiwan 550. 2 C a na da 999. 7 C a na da 196. 8 G ermany 31. 2%
J a pa n 6 C anada 2, 356. 5 Hong K ong 324. 7 S outh K orea 683. 4 J a pa n 109. 5 J apan 21. 9%
T a iwa n 3 T a iwa n 1, 650. 7 C anada 235. 6 J a pa n 503. 2 S outh K orea 92. 9 S weden 15. 4%
Aus tralia 2 S outh K orea 1, 333. 6 S outh K orea 166. 7 Hong K ong 389. 9 T a iwa n 52. 5 Italy 14. 6%
G erma ny 2 Hong K ong 324. 7 U nited S ta tes 147. 4 T a iwa n 366. 1 Ita ly 35. 0 Mala ys ia 13. 8%
S witzerla nd 1 G ermany 262. 5 R us s ia 145. 7 Ita ly 239. 2 Hong K ong 30. 8 R us s ia 13. 1%
Hong K ong 1 R us s ia 145. 7 Ita ly 141. 6 R us s ia 150. 1 R us s ia 19. 6 Hong K ong 7. 9%
F inla nd 1 Ita ly 141. 6 G ermany 131. 2 India 116. 9 Ma lays ia 10. 9 S outh K orea 6. 4%
Ita ly 1 S witzerla nd 82. 4 S witzerla nd 82. 4 Ma lays ia 78. 7 G erma ny 10. 6 S witzerla nd 1. 9%
United K ingdom 1 F inland 51. 1 F inland 51. 1 G erma ny 57. 2 Aus tralia 3. 1 C anada -13. 3%
India 1 India 28. 5 India 28. 5 S witzerla nd 40. 0 S witzerla nd 0. 8 U nited S ta tes -14. 9%
S weden 1 Malays ia 26. 3 Malays ia 26. 3 Aus tralia 16. 1 Norwa y -1. 1 India -23. 5%
R us s ia 1 Aus tralia 20. 1 Aus tralia 10. 1 F inla nd 6. 0 United K ingdom -1. 9 Norway -50. 6%
Ma lays ia 1 U nited K ingdom 5. 8 U nited K ingdom 5. 8 Norwa y 2. 2 F inla nd -15. 6 U nited K ingdom NA
Norwa y 1 Norway 0. 1 Norway 0. 1 United K ingdom 0. 3 India -27. 4 F inland NA

G rand Total 90 G rand Total 61,033.0 G rand Total 678.1 G rand Total 13,224.3 G rand Total 2,850.4 G rand Total 6.8%

Figure 27. Comparison by Country

Source. Capital IQ

C omparable C ompany Analys is > Web 2.0

S ummary by E xc hange
C ompany Name US D Market C ap ($m) Avg US D Market C ap ($m) US D L TM Total R ev ($m) US D L TM Total E B ITDA ($m) E B ITDA %

OT C B B 19 S E HK 25, 877. 1 S E HK 8,625. 7 OM 1,896. 1 Na s daqG S 1, 713. 9 S E HK 42. 7%

Na s daqG S 14 Nas da qG S 23, 155. 6 OM 2,448. 4 Na s daqG S 487. 6 S E HK 669. 2 AS X 37. 2%
OT C P K 11 TS E 3, 071. 0 NY S E 1,838. 4 S E HK 473. 2 OM 291. 3 GTS M 36. 3%
K OS E 6 OM 2, 448. 4 Nas da qG S 1,654. 0 CM 239. 2 TS E 90. 0 XT R A 31. 2%
TS E 5 NY S E 1, 838. 4 GTS M 692. 6 NY S E 219. 0 K OS E 80. 6 Nas da qG S 30. 1%
Na s daqG M 5 GTS M 1, 385. 2 TSE 614. 2 RTS 150. 1 GTS M 52. 5 TSE 22. 7%
TS X 4 K OS E 1, 249. 4 OS E 252. 8 BSE 116. 9 CM 35. 0 OS E 18. 0%
T S XV 4 TS X 315. 5 K OS E 208. 2 OS E 108. 8 RTS 19. 6 OM 15. 4%
S E HK 3 Nas da qG M 273. 8 R TS 145. 7 K OS E 102. 2 OS E 19. 5 CM 14. 6%
AME X 2 XT R A 262. 5 CM 141. 6 GTS M 91. 3 K LS E 10. 9 K LS E 13. 8%
AS X 2 OS E 252. 8 XT R A 131. 2 Na s daqG M 82. 7 XT R A 10. 6 R TS 13. 1%
XT R A 2 OT C B B 202. 6 SWX 82. 4 TS E 78. 9 AME X 6. 4 K OS E 4. 4%
GTS M 2 R TS 145. 7 TSX 78. 9 K LS E 78. 7 AS X 3. 1 Nas da qG M 3. 1%
SWX 1 CM 141. 6 Nas da qG M 54. 8 TS X 43. 7 SWX 0. 8 S WX 1. 9%
HL S E 1 SWX 82. 4 HLS E 51. 1 SWX 40. 0 NY S E 0. 0 T S XV 1. 3%
CM 1 AME X 75. 6 AME X 37. 8 AME X 29. 9 OT C NO -1. 1 TSX -14. 3%
BS E 1 T S XV 65. 6 BS E 28. 5 XT R A 28. 6 TS X -1. 8 BSE -23. 5%
NY S E 1 OT C P K 57. 9 K LS E 26. 3 OT C P K 16. 6 AIM -1. 9 OTCB B -32. 0%
OS E 1 HLS E 51. 1 T S XV 16. 4 T S XV 11. 7 Na s daqG M -2. 8 A ME X -36. 4%
AIM 1 BS E 28. 5 OT C B B 10. 7 AS X 8. 1 T S XV -6. 2 OTCP K -41. 3%
OM 1 K LS E 26. 3 AS X 10. 1 HL S E 6. 0 HL S E -15. 6 O T C NO -50. 6%
RTS 1 AS X 20. 1 AIM 5. 8 OT C NO 2. 2 BSE -27. 4 NY S E NA
K LS E 1 AIM 5. 8 OT C P K 5. 3 OT C B B 1. 7 OT C P K -34. 0 A IM NA
OT C NO 1 OT C NO 0. 1 OT C NO 0. 1 AIM 0. 3 OT C B B -62. 2 HLS E NA

G rand Total 90 G rand Total 61,033.0 G rand Total 678.1 G rand Total 13,224.3 G rand Total 2,850.4 G rand Total 6.8%

Figure 28. Comparison by Exchange

Source. Capital IQ
 Page 22

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

Mo nth Co mpany N ame C ountry Angel/S eed Debt financ ing P IP E S eries A S er ies B S eries C S eries D G rand To tal
May-09 Fac eboo k US A 20 0.0 200.0
One Net E ntertainment C hina 10.0 10. 0 20. 0
Cyberplex C a nada 12. 9 12. 9
P eer39 US A 10.5 10. 5
OpenX UK 10.0 10. 0
Intent Media US A 9.0 9.0
Imeem US A 8. 8 8.8
E veryZing US A 8. 3 8.3
Co nnec tE du US A 8. 2 8.2
BlogHer Inc . US A 7. 0 7.0
WonderHill US A 7.0 7.0
G is t US A 6.8 6.8
Fuhu Inc . US A 6. 3 6.3
Azuki S ys tems US A 6.0 6.0
I Lo ve R ewards C a nada 5. 9 5.9
Do c uS ign US A 5 .0 5.0
TimeBridge US A 5. 0 5.0
OLX US A 5. 0 5.0
Medialets US A 4. 0 4.0
Res o nate Netwo r ks US A 2.0 2.0
VoxP o p US A 1. 5 1.5
Mo 'Minis I srael 1.5 1.5
Lo op'd N etwor k US A 0. 8 0.8
May-09 T otal 13.6 10.0 22. 9 32.3 2 6.9 40.8 20 5.0 351.3

J un-09 S ugar Inc . US A 16.0 16. 0

Tumri US A 1 5.0 15. 0
Bo ku US A 13.0 13. 0
Wimba US A 12.0 12. 0
G rab N etwo rks US A 12. 0 12. 0
AdC hina C hina 10. 0 10. 0
G oo jet S AS F rance 8. 5 8.5
AdMeld Inc . US A 8. 0 8.0
beeT V US A 8. 0 8.0
No keena US A 6. 5 6.5
Bubble Motion US A 6. 0 6.0
S ens e Netw orks US A 6. 0 6.0
Zo os k US A 6. 0 6.0
G ather US A 5 .3 5.3
Mo jo P ages US A 5.0 5.0
Tao mee C hina 5. 0 5.0
Animo to US A 4. 4 4.4
G ameG ro und I srael 4. 1 4.1
RingRevenue US A 3.5 3.5
Crowdc as t US A 3. 0 3.0
YuMe US A 2. 9 2.9
eRepublik S pain 2. 8 2.8
News er L L C US A 2.5 2.5
Clic kF uel US A 2.5 2.5
Inigral US A 2. 4 2.4
AdE x Media US A 2.3 2.3
G ROU .P S US A 2. 1 2.1
my6s ens e I srael 2.0 2.0
OneT XT US A 2.0 2.0
Yapta US A 2. 0 2.0
I Lo ve R ewards C a nada 1. 8 1.8
Cliqs et US A 1. 5 1.5
G lubble N etherla nds 1. 0 1.0
P ic aboo US A 1.0 1.0
To daC ell I srael 1.0 1.0
AdW hirl US A 1. 0 1.0
LiquidP lanner US A 1. 0 1.0
Mas hLo gic US A 0. 5 0.5
J un-09 T otal 45.3 15. 3 28.5 6 7.8 34.0 5 .3 196.1
 Page 23

Mo nth Co mpany N ame C ountry Angel/S eed D ebt financ ing P IP E S eries A S er ies B S eries C S eries D G rand To tal
J u l-09 P andora Media US A 35.0 35. 0
Ko nter a L td. I srael 15.5 15. 5
Ning US A 15.0 15. 0
Quic kP lay Media C a nada 12.0 12. 0
Cau s es US A 10.0 10. 0
Outs park US A 8. 3 8.3
Co nnec tE du US A 8. 2 8.2
Ac qu ia, Inc US A 8. 0 8.0
S BN atio n US A 8. 0 8.0
Metavers um G ermany 6. 3 6.3
Quikr India P vt. Ltd. I ndia 4. 1 4.1
OP E N S ports network 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 tonMedia US A 2.5 2.5
iL oo p Mobile US A 2. 0 2.0
Lat49 C a nada 1.5 1.5
Aloqa G ermany 1. 5 1.5
Tributes .c om US A 1. 2 1.2
Co Tweet US A 1.1 1.1
Clikthro ugh US A 1.0 1.0
Cellu fun US A 1. 0 1.0
P eople Capital US A 0. 5 0.5
Bo okF res h US A 0. 5 0.5
J u l-09 T otal 52.8 10.1 23.0 51.5 27.0 164.4

Gr and To tal 111. 7 10.0 38. 2 70.9 117. 6 126.3 237.3 711.8

Figure 29. Financing, Last Three Months

Source. Company reports
 Page 24

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 .

B ookF res h U nited S ta tes www.bookfresh.com B ookF res h prov ides online scheduling and appointment software for s mall bus ines ses , serv ic e profess ionals a nd brands, AP Is , enterprise
services a nd res eller s olutions, a nd online publishers . I t offers a n online s c heduling s ys tem tha t ena bles new and ex isting clients to s chedule
a ppointments online. T he compa ny a lso covers v arious busines s es, s uc h as a utomotiv e, busi ness to bus ines s, computers a nd electronic s ,
educa tion, enterta inment a nd arts , food a nd dining, hea lth a nd beauty, home a nd garden, legal and fina nc ia l, profes s ional s ervic es , rea l
estate, and tra vel and lodging. Its s olutions a re us ed in va rious sectors , s uch a s mass a ge busines s, tanning busines s , persona l tra iners,
clea ning bus iness , dental s chedul ing, ha ndyma n busines s, dog and pet sitters, photogra phers , life coaching, c omputer repa ir, wellnes s pros ,
sales profes siona ls , a nd salon bus iness . B ook F res h wa s formerly k nown a s H ourTown, Inc . a nd changed its na me in J une 2009. The
company was founded in 2007 a nd is ba s ed in S a n M ateo, Ca lifornia.

C ellu fun U nited S ta tes www.cellufun.com C ellufun, LL C opera tes as a mobile c ommunities where people s ocializes , play games, a nd buy v irtua l goods for s elf expres s ion, gifting, and
competitiv e adv anta ge. Its games ca ta logs include ho t, s ocial, a dventure, ca s ino, a nd board ga mes . The compa ny wa s founded in 2005 and
is bas ed in New Y ork , N ew Y ork.

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.
iL oo p U nited S ta tes www.iloopmobile.com iL oop M obile, I nc. prov ides mobile s ervi ces a nd tec hnology for intera c tiv e mobile ma rk eting, advertising, a nd c ontent dis tribution. T he
company offers mF inity , a We b-ba s ed softwa re tha t c reates , c onnects, a nd ma nages mobile phone initiatives for bra nds , ma rketing
a gencies , c ontent owners , a nd v arious c ompanies in the U nited S ta tes a nd interna tiona lly . Its mF inity opera tes as a platform to offer
integrated solution for crea ting a nd ma na ging v arious S MS marketing and mes sa ging, mobile Internet s ites , mobile advertis ing, a nd W eb
sites for mobile content deliv ery and va rious mobile initiatives and serv ices . T he compa ny is headqua rtered in S an J os e, C a lifornia with
a dditional offic es in Copenha gen.
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.
 Page 25

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 .

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
U nited S ta tes www.peoplemedia.com payment his tory
P eople Media . ThetesP eople
opera more Ctha
a pital
n 20 platform
v ertic allygenera teson
focus ed liquidity i n the ma rk primarily
line c ommunities et by ma tc hing
gea reda lltowa
lenders witing.
rds da th a ll borrowers, not just “family and
P eople Me dia
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
Qu ikr India P rivate L imited
S BN atio n (S po rts blogs Inc .)
S tyleCas ter
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.
I ndia www.quikr.com Q uikr I ndia P riv ate L imited opera tes as a c ommunity cla ss ifieds W ebsite. I t enables people in the s ame c ity to meet, tra de, sha re ideas , and
help in va rio us a rea s, s uch a s hous ehold goods, ca rs a nd bikes , s ervices, real es ta te, jobs , a nd ma trimo nia ls. Q uik r India P riva te L i mited
was formerly known a s K i jiji I ndia P riva te L imited. The compa ny wa s incorpora ted in 2005 a nd is ba s ed in M umba i, India . Q uik r India P rivate
L imited is a former s ubs idiary of eB a y In c.
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 .
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.
 Page 26

Open X U nited K ingdom www. openx. org O penX Limited, a n open s ource advertising c ommunity, dev elops independent a d serv er and other s ervic es for W eb publishers to ma nage
the online a dvertising. I t als o provides ad network pla tforms for ad network s , a d s a les hous es, and affilia te networks to deli ver advertising
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R es on ate Netwo rks U nited S ta tes www. res onatenetwork s. com in 2006
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ona te is based
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. tha t wa s crea ted to help public a ffa irs , political and corpora te adv ertis ers a nd a gencies
mo re prec isely target and reach web users , bas ed on thei r a ttitudes and iss ue pos itions on a wide range of topic s .
T im eBridge U nited S ta tes www. timebridge. c om Timebridge, I nc. offers person al s cheduling ma na ger that ena bles profess iona ls to s c hedule their time. The compa ny ’s one-s tep sc heduling
a llows s c heduling meetings with la rge groups or individua ls ac ros s time zones , c alenda ring s ys tems , and companies. It allows us ers to
U nited S ta tes www. vox pop.tv schedule meetings
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voic e opi nions on pop c ulture topic s , suc h a s celebrities, sports, fa s hion, a nd enterta inment. V ox P op N etwork is hea dquartered in S a n
F ra nc is co, C a lifornia .

Figure 30. Company Descriptions

Source. Company reports, Capital IQ, Crunchbase
 Page 27

RELEVANT DISCLOSURES APPLICABLE TO: NONE

LIST OF DISCLOSURE TERMS:

1. None applicable.

ANALYST CERTIFICATION
Each analyst of Research Capital Corporation whose name appears in this report hereby certifies that (i) the
recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii)
no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or
recommendations expressed in this research report.

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

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

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

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