SOFTWARE & SERVICES 9 JUNE 2009

DAVID SHORE, CFA, MBA 416.860.6784

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

VENTURE CAPITAL INDUSTRY GOING THROUG H SIGNIFICANT CHANG E

AR E W E L O OK IN G AT F E W ER B UT BI GG E R IN V E S T ME NT S?
In previous editions of this report, we have talked about the decline in the flow of money from institutional accounts
(pension funds, hedge funds, etc.) into the venture capital industry, as well as direct investment in start-up
companies. Falling valuations have been the principal reason for this trend, with private company (start-up) and early
IPOs suffering tremendously and affecting investor returns. Global capital market levels coupled with the economy
and redemptions are also to blame. The W all Street Journal reported that the U.S. VC industry sank $29.7 billion into
start-ups in 2008 and produced just $24.9 billion from the IPOs and sale of start-ups.
The slowing capital flow into the venture capital sector has initiated a significant change within the industry. The
Journal also reported that according to the National Venture Capital Association, the number of venture capital
principals has dropped 15% from the end of 2007 to the end of 2008 (from 8,892 to 7,497). W e agree with the Journal
that this is part of a natural evolution in the industry. Investors (in VC funds) are seeking fewer principals to handle
their money, but invest larger amounts in good companies, unlike the past few years when funds were widely
distributed in smaller portions across many companies. This will naturally result in better vetting of business models,
with the good ones finding a lot more capital and the mediocre and poor start-ups being left aside.
On the capital raise front, Sugar Inc. leads: The capital raise from Sugar Inc. for $16 million was the largest deal
for the first week of June, closely followed by Grab Networks at $12.0 million. All deals, except the two mentioned
above, were less than $10 million. The average value for the first week of June is $6.0 million, slightly below the
average value for May of $6.4 million (excluding the investment in Facebook) on 16 financings. The April average was
$6.2 million on 23 financings.

Financing Activity Last Three Months

160.0 7.0

6.2 6.4
140.0
6.0 6.0

120.0
5.0

100.0

4.0
(US$m)

(US$m)

80.0

3.0

60.0

2.0
40.0

1.0
20.0

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

Total Average

A mixed price performance week: The companies in our universe had relatively strong stock price performances
over the past week (for stocks with prices greater than $1) (Figure 6), with 20 companies showing positive returns on
the week. Actoz Soft Co. (A052790:KOSE) led the group with a 23.6% return, while CDC Corp. (CHIN.A:NASDAQ)
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-three public Web 2.0 companies = $55 billion market cap: Our W eb 2.0 universe contains 93 companies, with a
combined market cap of approximately $54.9 billion (Figure 1). The average market cap for the group is ~$590 million (but
a median of only $48.2 million), with average trailing revenue of $151 million (median $54 million). The companies are
also generally profitable, with a median EBITDA margin of 14.2%. On a valuation basis, the overall average is 5.4x trailing
revenue (median 2.0x) and 10.3x trailing EBITDA (median 9.4x). Fourteen of the companies have more than 500
employees.
C omparable C ompan y A nalys is > W eb 2.0
Trading Cu rr ent U S D Market U S D LT M To tal US D L TM T otal E BITD A TE V/LT M T E V/LT M
C om pany Nam e L TM as o f T ic ker E xc hange Currenc y HQ P ric e C ap ($m) R ev ($m) E B ITDA ($m) % R evenu e E B IT DA
Acce le riz e N ew Me dia, Inc. 3 /31 /200 9 AC LZ OT C B B US D U nited S ta tes 0 .35 9 .7 4.1 (4 .4) NM 3.5 x -
Actoz S of t C o., L td. 3 /31 /200 9 A0 527 90 K OS E KR W S outh K orea 32, 500 22 1.6 92. 2 2 0.0 21 .7% 2.1 x 9.6x
AQ Inte ractive , Inc. 1 2/31 /200 8 38 38 TSE J PY J apan 75 ,000 .00 4 1.4 61. 2 4 .9 8 .0% 0.2 x 2.5x
As s ocia ted Media Holdings Inc. 6 /30 /200 7 AS MH OT C P K US D U nited S ta tes 0 0 .9 0.1 (2 .3) NM 19.2 x -
B igstring Co rp. 3 /31 /200 9 BS GC OT C B B US D U nited S ta tes 0 .03 1 .4 0.1 (2 .0) NM 37.4 x -
B e tawave Corpora tion 3 /31 /200 9 B W AV OT C B B US D U nited S ta tes 0 2 .9 8.4 (1 2.6) NM - -
B e yond Commerce, Inc. 3 /31 /200 9 B Y OC OT C B B US D U nited S ta tes 0 .95 4 2.2 7.1 (9 .5) NM 6.6 x -
B right T hings plc 9 /30 /200 8 AIM :B G T AIM GB P U nited K ingdom 0 4 .1 0.3 (1 .8) NM 15.3 x -
B roa dW ebAs ia Inc. 9 /30 /200 8 BW BA OT C P K US D U nited S ta tes 0 .30 2 5.3 0.0 (4 .6) NM - -
C DC C orp. 3 /31 /200 9 C HIN .A N as da qG S US D H ong K ong 1 15 8.1 389 .9 3 0.8 7 .9% 0.4 x 5.6x
C ha ngyou. com Limite d 3 /31 /200 9 C Y OU N as da qG S US D C hina 38 .70 2,1 28.5 222 .5 13 5.1 60 .7% 8.7 x 1 4.4 x
C hina G ate wa y C orpora tion 9 /30 /200 8 CGW Y OT C P K US D U nited S ta tes 0 0 .0 6.7 (6 .6) -9 8.9% 0.0 x -
C hine s e G amer In ternational 3 /31 /200 9 G T S M:308 3 GTSM TWD T aiwan 366 .00 93 7.2 56. 2 3 1.5 56 .0% 15.5 x 2 7.7 x
C ornerW orld C orporation 1 /31 /200 9 C WR L OT C B B US D U nited S ta tes 0 5 .8 1.3 NM NM 5.5 x -
C yberplex Inc. 3 /31 /200 9 T S X:C X TSX C AD C ana da 1 .50 8 4.1 72. 5 7 .5 10 .3% 1.1 x 1 0.7 x
D ADA S pA 9 /30 /200 8 C M:D A CM EUR Ita ly 6 12 8.2 235 .2 3 7.6 16 .0% 0.8 x 4.7x
D XN Holdings B hd 2 /28 /200 9 DX N KLSE MY R Ma la ys ia 0 .39 2 5.6 78. 6 1 0.8 13 .7% 0.5 x 3.8x
D ibz Inte rnational, Inc. NA DIB Z OT C P K US D U nited S ta tes 0 0 .0 NA NM NM - -
D igitalP ost Inte ra ctive , Inc. 3 /31 /200 9 DG LP OT C B B US D U nited S ta tes 0 .02 1 .2 0.7 (2 .6) NM 3.9 x -
D igitalT own, Inc. 2 /28 /200 9 DG T W OT C B B US D U nited S ta tes 3 6 7.7 NM (3 .0) NM - -
D olphin D igital Me dia, In c. 3 /31 /200 9 DP DM OT C B B US D U nited S ta tes 0 .60 3 1.0 0.8 (3 .7) NM 41.4 x -
E olith C o. L td. 1 2/31 /200 8 A0 410 60 K OS E KR W S outh K orea 700 4 0.6 14. 7 (3 .5) -2 3.6% 2.9 x -
E xte ns ions , Inc. 3 /31 /200 9 E XT I OT C P K US D U nited S ta tes 0 .15 1 4.2 NM NM NM - -
F inancia l Media G roup, Inc. 2 /28 /200 9 F NG P OT C B B US D U nited S ta tes 0 0 .2 7.2 2 .4 34 .1% - -
F luid M us ic Ca nada, Inc. 3 /31 /200 9 T S X:F MN TSX C AD U nited S ta tes 0 .70 3 2.7 5.0 (6 .9) NM 4.6 x -
F rogs te r Interactive P icture s AG 6 /30 /200 8 F RG XT R A EUR G ermany 8 2 5.6 5.6 (3 .4) -6 0.6% 4.5 x -
G a ma nia D igital E ntertainment C o., L td. 3 /31 /200 9 61 80 GTSM TWD T aiwan 55 .80 25 8.1 126 .2 2 1.0 16 .6% 1.9 x 1 1.2 x
G a me On C o L td. 3 /31 /200 9 38 12 TSE J PY J apan 1 16, 700 11 4.5 74. 7 1 7.7 23 .7% 0.7 x 3.1x
G e oS e ntric O yj 3 /31 /200 9 G E O1 V H LS E EUR F inland 0 .05 6 2.3 5.9 (1 5.2) NM 9.9 x -
G iant Intera ctive G roup, Inc. 3 /31 /200 9 GA NYS E US D C hina 9 2,0 37.2 218 .9 NM NM - -
G iga Media Ltd. 1 2/31 /200 8 G IG M N as da qG S US D T aiwan 6 .16 33 2.8 190 .4 4 6.0 24 .2% 1.4 x 5.6x
G ravity C o., L td 9 /30 /200 8 GR VY N as da qG M US D S outh K orea 1 3 2.0 39. 1 7 .5 19 .2% - -
G ree, Inc. 6 /30 /200 8 T S E : 363 2 TSE J PY J apan 6 ,430 .00 1,4 57.2 29. 8 1 0.7 36 .0% 46.2 x -
G ungH o O nline E ntertainment, Inc. 3 /31 /200 9 37 65 OS E J PY J apan 2 49, 700 29 0.2 104 .6 1 8.8 18 .0% 2.5 x 1 4.0 x
H anbitS of t, Inc. 3 /31 /200 9 A0 470 80 K OS E KR W S outh K orea 4 ,790 .00 8 3.8 55. 1 (1 4.8) -2 6.8% 1.2 x -
IAC /InterActiveC orp. 3 /31 /200 9 IAC I N as da qG S US D U nited S ta tes 16 2,4 46.3 1 ,40 6.4 4 2.6 3 .0% 0.4 x 1 3.2 x
IAS E nergy, Inc. 1 /31 /200 9 IAS C.A OT C B B US D C ana da 0 .20 1 4.0 0.0 (0 .8) NM - -
is ee media Inc. 1 2/31 /200 8 IE E T S XV C AD C ana da 0 3 .2 1.3 (5 .3) NM 1.1 x -
J umbuck E ntertainment P ty Ltd. 1 2/31 /200 8 AS X:J MB AS X AU D Aus tra lia 0 .42 1 6.3 14. 1 5 .2 37 .2% 0.8 x 2.2x
J umpT V Inc. 1 2/31 /200 8 T S X:J T V TSX C AD C ana da 1 7 4.9 13. 4 (8 .4) -6 2.6% 4.2 x -
K a boos e Inc. 3 /31 /200 9 T S X:K AB TSX C AD C ana da 0 .61 7 6.0 73. 3 8 .7 11 .9% 1.1 x 9.3x
K ings oft Co. Ltd. 3 /31 /200 9 38 88 S E HK HK D C hina 5 76 8.4 129 .0 5 2.0 40 .3% 5.5 x 1 3.7 x
Lingo Media Corporation 3 /31 /200 9 T S XV : LM T S XV C AD C ana da 1 .00 1 1.5 0.9 (1 .6) NM 11.3 x -
Live Wo rld Inc. 3 /31 /200 9 LV WD OT C P K US D U nited S ta tes 0 7 .7 11. 4 (0 .0) -0 .4% 0.6 x -
LookS mart, Ltd. 3 /31 /200 9 LOOK N as da qG M US D U nited S ta tes 1 .33 2 2.7 60. 7 (3 .8) -6 .3% - -
Magnitude Information S ys tems Inc. 3 /31 /200 9 MA G Y OT C B B US D U nited S ta tes 0 4 .6 0.1 (3 .1) NM - -
Mixi, Inc. 3 /31 /200 9 21 21 TSE J PY J apan 455 ,000 .00 70 9.8 122 .3 4 3.3 35 .4% 4.9 x 1 3.7 x
Mode rn Times G roup Mtg AB 3 /31 /200 9 MT G B OM S EK S weden 213 1,7 85.0 1 ,71 6.0 26 2.9 15 .3% 1.4 x 8.9x
Moggle , Inc 3 /31 /200 9 MM OG OT C B B US D U nited S ta tes 2 .30 8 3.5 NM NM NM - -
MOK O.mobi L imited 1 2/31 /200 8 MK B AS X AU D Aus tra lia 0 4 .5 1.1 (2 .3) NM 3.0 x -
Myriad G rou p AG 1 2/31 /200 8 MY R N SWX CHF S witzerla nd 5 .20 10 1.4 40. 0 0 .8 1 .9% 2.8 x -
N E OW IZ G ames C orpora tion 1 2/31 /200 8 A0 956 60 K OS E KR W S outh K orea 71, 500 54 9.5 197 .7 5 3.1 26 .8% 2.7 x 1 0.2 x
N etD ragon W ebS oft, Inc. 3 /31 /200 9 77 7 S E HK HK D C hina 5 .31 36 2.1 86. 9 3 4.4 39 .5% 2.6 x 6.5x
N ete as e.com I nc. 3 /31 /200 9 NT E S N as da qG S US D C hina 37 4,6 13.2 470 .3 30 5.7 65 .0% - -
N eXplore Corpora tion 9 /30 /200 7 NX P C OT C P K US D U nited S ta tes 0 .70 3 9.0 NM (4 .9) NM - -
N gi G roup Inc. 1 2/31 /200 8 24 97 TSE J PY J apan 32, 000 4 0.1 99. 8 3 0.7 30 .8% - -
N orthgate Te chnologies L imited 3 /31 /200 9 59 005 7 BS E INR India 54 .20 3 9.8 117 .9 (2 7.7) -2 3.5% 0.3 x -
Open T e xt Corp. 3 /31 /200 9 OT E X N as da qG S US D C ana da 34 1,8 08.1 782 .6 19 9.2 25 .5% 2.4 x 9.4x
Openwave S ys tems Inc. 3 /31 /200 9 OP W V N as da qG S US D U nited S ta tes 1 .89 15 7.4 197 .2 (2 .1) -1 .0% 0.3 x -
P e rf ect W orld C o., Ltd. 3 /31 /200 9 PW R D N as da qG S US D C hina 23 1,1 57.2 228 .0 12 4.5 54 .6% 0.1 x 0.1x
P hotoChannel N etwork s Inc. 3 /31 /200 9 T S XV : P N T S XV C AD C ana da 1 .60 4 8.8 19. 3 0 .5 2 .3% 2.5 x -
Quepa s a C orp. 3 /31 /200 9 QP S A N as da qC M US D U nited S ta tes 1 8 .9 0.1 (1 0.8) NM - -
OA O R B C Information S ys tems 1 2/31 /200 7 R BCI R TS US D R us s ia 1 .35 18 7.3 150 .8 1 9.7 13 .1% 0.0 x 0.3x
S handa Interactive E ntertainme nt L td. 3 /31 /200 9 S N DA N as da qG S US D C hina 62 4,2 76.8 569 .8 26 0.8 45 .8% 0.2 x 0.5x
S hutte rf ly, Inc. 3 /31 /200 9 S F LY N as da qG S US D U nited S ta tes 13 .45 33 8.6 215 .2 2 8.3 13 .2% 1.3 x 9.6x
S K C ommunications Co., Ltd. 1 2/31 /200 8 A0 662 70 K OS E KR W S outh K orea 11, 000 36 8.1 183 .8 1 2.0 6 .5% 2.0 x 3 0.8 x
S N AP Inte ra ctive , Inc. 3 /31 /200 9 S T VI OT C B B US D U nited S ta tes 0 .75 8 .1 3.3 0 .9 28 .0% 2.0 x 7.2x
S N M G lobal H oldings 9 /30 /200 8 S N MN OT C P K US D U nited S ta tes 0 0 .0 2.0 (0 .7) -3 4.8% 1.1 x -
S ocia l Media V e nures , Inc. 1 2/31 /200 8 S MV I OT C P K US D U nited S ta tes 0 .01 0 .0 0.1 (0 .1) -6 0.5% 0.0 x -
S ocia lwis e, Inc. 3 /31 /200 9 S C LW OT C B B US D U nited S ta tes 1 3 0.8 0.0 (4 .8) NM - -
S ohu. com Inc. 3 /31 /200 9 S OHU N as da qG S US D C hina 66 .90 2,5 59.9 460 .0 20 0.5 43 .6% 4.8 x 1 0.9 x
S ite s earch C orporation 1 /31 /200 9 S T PC OT C B B US D U nited S ta tes 3 2 8.2 NM (1 .1) NM - -
S park N etworks , Inc. 3 /31 /200 9 LOV AME X US D U nited S ta tes 2 .31 4 7.5 54. 3 1 1.8 21 .7% 0.9 x 4.1x
S pectrumDN A, Inc. 3 /31 /200 9 S P XA OT C B B US D U nited S ta tes 0 1 8.0 0.1 (2 .6) NM - -
T encent Holdings L td. 3 /31 /200 9 70 0 S E HK HK D C hina 89 .60 20,8 43. 8 1 ,20 2.9 57 6.4 47 .9% 18.9 x 3 9.3 x
T he P arent C ompany 8/2/2008 K ID S .Q OT C P K US D U nited S ta tes 0 0 .5 112 .0 (1 3.5) -1 2.0% 0.2 x -
T he 9 L imited 1 2/31 /200 8 NCT Y N as da qG S US D C hina 11 .12 29 8.2 249 .8 8 4.1 33 .7% - -
T he S treet.com, Inc. 3 /31 /200 9 TSCM N as da qG M US D U nited S ta tes 2 5 9.4 67. 0 1 .9 2 .9% - -
T otal S port Online A S 3 /31 /200 6 T OS O OT C NO NOK N orwa y 0 .03 0 .1 2.1 (1 .0) -5 0.6% 4.6 x -
T ree.C om, Inc. 3 /31 /200 9 TR EE N as da qG M US D U nited S ta tes 12 12 8.4 215 .6 (1 3.3) -6 .2% 0.6 x -
U nis erve C ommunications Corp. 2 /28 /200 9 T S XV : US S T S XV C AD C ana da 0 .05 1 .1 23. 2 0 .1 0 .2% 0.2 x -
U nited Online Inc. 3 /31 /200 9 U NT D N as da qG S US D U nited S ta tes 7 57 9.2 811 .2 17 7.3 21 .9% 1.1 x 4.9x
U OMO Media , Inc 1 /31 /200 9 U OMO OT C B B US D C ana da 0 .18 1 5.4 0.6 (0 .5) -7 8.2% 24.8 x -
V a lueC lick Inc. 3 /31 /200 9 V C LK N as da qG S US D U nited S ta tes 12 1,0 10.6 591 .7 10 5.5 17 .8% 1.5 x 8.6x
V O IS , Inc. 3 /31 /200 9 V OIS OT C B B US D U nited S ta tes 0 .35 2 .9 0.0 (1 .1) NM - -
W ebze n Inc. 3 /31 /200 9 W ZE N N as da qG M US D S outh K orea 4 4 7.6 23. 0 (0 .4) -1 .9% - -
W izza rd S of twa re Corpora tion 3 /31 /200 9 W ZE AME X US D U nited S ta tes 0 .67 3 2.0 5.6 (5 .1) -9 1.5% 6.0 x -
W orlds .com Inc. 3 /31 /200 9 W DD D OT C B B US D U nited S ta tes 0 5 .2 0.0 (0 .8) NM - -
W ynds torm C orporation NA W YND OT C B B US D U nited S ta tes 0 .51 9 .2 NA NM NM - -
XIN G AG 3 /31 /200 9 O1B C XT R A EUR G ermany 31 22 8.3 52. 5 1 6.4 31 .2% 3.4 x 1 0.8 x
Y e dangOnline Corp. 1 2/31 /200 7 A0 527 70 K OS E KR W S outh K orea 9 ,670 .00 12 1.2 54. 7 1 2.2 22 .4% 2.4 x 1 0.7 x
Y nk K orea Inc. 1 2/31 /200 8 A0 237 70 K OS E KR W S outh K orea 7, 000 2 9.9 11. 4 1 .2 10 .5% 2.6 x 2 4.3 x
ZipLocal Inc. 3 /31 /200 9 T S XV : ZIP T S XV C AD C ana da 0 .01 0 .4 2.7 (2 .1) -7 8.3% 0.6 x -
H igh 20,8 43. 8 1 ,716 .0 57 6.4 65 .0% 46.2 x 3 9.3 x
Low 0 .0 0.0 -27.7 -9 8.9% 0.0 x 0.1x
A vera ge 590.6 150 .8 32 .9 6.3% 5.4x 10.3x
Median 4 8.2 54. 3 0 .8 14 .2% 2.0 x 9.4x

Figure 1. Web 2.0 Universe Summary

Source. Capital IQ
 Page 3

C A P I T A L M A R K E T S A C T I V I T Y (M & A A N D F I N A N C I N G )
June starts well: The first week of June started well, with a total of $47.6 million raised in eight transactions. It was led by
Sugar Inc. raising $16.0 million, closely followed by Grab Networks raising $12.0 million. All other transactions were less
than $10 million. The average value for the first week of June is $6.0 million, slightly below the average value for May of
$6.4 million (excluding the $200 million investment in Facebook) on 16 financings. The April average was $6.2 million on
23 financings.

Financing Activity Last Three Months

160.0 7.0

6.2 6.4
140.0
6.0 6.0

120.0
5.0

100.0

4.0
(US$m)

(US$m)
80.0

3.0

60.0

2.0
40.0

1.0
20.0

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

Total Average

Figure 2. Financings, Last Three Months

Source. Company reports

Sugar Inc. leads capital raise: The capital raise from Sugar Inc. for $16 million was the largest deal for the first week of
June. Two of the eight deals last week were greater than $10 million. For additional details, see Figures 23 and 24 (at end
of note).
 Page 4

Financing & M/A Summary - Last Three Months

250.0

200.0

150.0

Jun-09
(US$m)

May-09
Apr-09

100.0

50.0

0.0
Mixercast
Collective Media

Marin Software

EveryZing

VoxPop
Cyberplex

OpenX

OLX

Socialtext

TubeMogul
GOOM Radio

Viximo

IMShopping

RingRevenue

Tribal Nova
Grab Networks

I Love Rewards

Medialets

Resonate Networks
Mo'Minis

Brandtology
DoubleTwist
Peer39

Cellufun

Batanga

DocuSign

SoundCloud

my6sense
Tripbase

Jodange

Foodista
Facebook

Azuki Systems

Loop'd Network

MashLogic
Sugar Inc.

The Rubicon Project

Conductor Inc.

ScanScout
beeTV

BlogHer Inc.
Gist
Fuhu Inc.

Cliqset
Socialcast

Scan & Target

StumbleUpon

TimeBridge

GameGround
One Net Entertainment

Imeem
FreeWheel

WonderHill

Figure 3. Capital Market Activity, Last Three Months

Source. Company reports

Social Network remains the most active sector in dollars raised; w hile Ad Netw ork remains the most active in
number of transactions: Following recent trends, Social Networks as a sector saw the most activity in dollars raised
($221.1 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 (11), raising $98.5 million (Figure 4). The Media sector has the
next highest totals, with six companies raising $45.8 million. The following sectors continue to generate the most capital
activity over the last few months: Ad Network, Media, Gaming, and Social Networks.
 Page 5

Capital Market Activity by Sector - Last Three Months

250.0

200.0

150.0
(US$m)

221.1
100.0

50.0 98.5

45.8
33.0 30.2 24.0 23.0 18.3 14.5 10.4 9.0
0.0 6.8 5.9 5.0 4.7 4.4 2.0 2.0 1.3 0.6
Comment/Reputation

Social Commerce
Gaming

Travel

Wiki
Media

Enterprise

Collaboration

Mobile
Widget
Blog

Search

Infrastructure
Social Networks

SAS
Video

Virtual World

Aggregation
Ad Network

Analytics
# companies

7 11 6 5 2 2 2 2 3 2 3 1 1 1 1 2 1 1 1 1

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

Source. Company reports

C A P I T A L M A R K E T S A C T I V I T Y (P R I C E P E R F O R M A N C E )
Web 2.0 index outpaces NASDAQ recovery: Our W eb 2.0 index (market-cap weighted) essentially mirrored the
performance of the NASDAQ composite index from mid-2008 until recently. However, the index has recently had a much
stronger recovery relative to the NASDAQ index (Figure 5).
 Page 6

Web 2.0 Index Price Performance

95.0

85.0

75.0

65.0

55.0

45.0

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

Figure 5. Web 2.0 Price Performance

Source. Capital IQ

A mixed price performance week: The companies in our universe had relatively strong stock price performances over
the past week (for stocks with prices greater than $1) (Figure 6), with 20 companies showing positive returns on the week.
Actoz Soft Co. (A052790:KOSE) led the group with a 23.6% return, while CDC Corp. (CHIN.A:NASDAQ) had the worst
return, dropping 12.4% in the week.
 Page 7

1 Week P rice P erformance

A ctoz S of t Co., Ltd. 23.6%
The9 Limited 20.0%
Northgate Technologies Limited 15.2%
G ree, Inc. 14.2%
Giant Interactive G roup, Inc. 14.0%
Tree.Com, Inc. 10.8%
Changy ou.com Limited 8.2%
Frogs ter Interactiv e Pictures A G 5.4%
Neteas e.com Inc. 4.7%
Tencent Holdings Ltd. 4.7%
K ings of t Co. Ltd. 4.6%
G ravity Co., Ltd 4.5%
PhotoChannel Netw orks Inc. 3.9%
V alueClick Inc. 3.1%
S handa Interactive Entertainment Ltd. 2.3%
LookS mart, Ltd. 2.3%
Openw ave S y s tems Inc. 1.9%
S ohu.com Inc. 1.0%
S park Netw orks , Inc. 0.9%
Perfect World Co., Ltd. 0.4%
United Online Inc. -0.4%
G igaMedia Ltd. -0.5%
Mix i, Inc. -0.7%
TheS treet.com, Inc. -1.0%
NetDragon WebS of t, Inc. -2.0%
IA C/InterA ctiveCorp. -2.2%
Chines e Gamer International -2.8%
Eolith Co. Ltd. -3.4%
Open Tex t Corp. -3.7%
DA DA S pA -4.1%
Cy berplex Inc. -4.5%
Gamania Digital Entertainment Co., -4.8%
Y edangOnline Corp. -5.2%
G ameOn Co Ltd. -5.9%
A Q Interactiv e, Inc. -6.3%
XING A G -7.3%
NEOWIZ Games Corporation -7.3%
Ngi G roup Inc. -7.8%
S K Communications Co., Ltd. -8.3%
Modern Times G roup Mtg A B -8.6%
Y nk K orea Inc. -9.1%
HanbitS of t, Inc. -9.5%
Webz en Inc. -10.8%
S hutterf ly , Inc. -11.1%
CDC Corp. -12.4%
-15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

Figure 6. 1-Week Price Performance

Source. Capital IQ

INDUSTRY NEWS (PARTNERSHIPS, FINANCIAL RESULTS, NEW PRODUCTS)
K ey Developments
C ompany
is eemedia Inc . (T S XV: IE E )
OA O R BC Info rm atio n S ys tem s
(R TS : R B CI)
B arc lays Private E quity Ltd. ; B ounty
L td.; Kaboo s e Inc . (TS X: K AB )
P erfec t World C o. , Ltd.
(Nas daqG S : PW R D)
S ites earc h Co rporation (OT CB B :S T P C) S ites ea rch C orporation Appoints J orge De L os S a ntos as E ffectiv e J une 1, 2009, S ites earch C orporation exec uted an employ ment agreement with J orge de los S a ntos pursuant to which M r. de los
S enior V ice P resid ent
Dis ney Online; K abo os e Inc .
(T S X:K AB); Kaboo s e In c., Intern et
A s s ets
Openwave S ys tems Inc .
(Nas daqG S : OPW V)
B eyond Commerc e, Inc .
(OT CB B: B Y OC)
S handa Interactive E ntertainment L td.
(Nas daqG S : S NDA)
Headline
iseemedia Inc. R eports U na udited C onsolida ted E a rni ngs iseemedia Inc. reported una udited consol ida ted earnings res ults for the third quarter a nd ni ne months ended M arch 31, 2009. F or the
R es ults for the T hird Q ua rter a nd Nine Months E nded
Ma rc h 31, 2009
K a pital S ues O A O R B C Informa tion S ys tems
B a rcl ays P riv ate E quity L td. c ompleted the a cquisition o f B a rclay s P riv ate E quity L td. entered into a n a greement to a cquire B ounty Ltd. from K a boose Inc . (T S X : K AB ) for £54 million on M a rch 31,
B ounty Ltd. from K a boos e I nc . (TS X : K AB ).
Upda te to P erfect W orld Co. , Ltd. 's E quity B uyback on
J une 1, 2009
S a ntos will s erv e as the c ompany's s enior vice pres ident. T he a greement is for an initial one y ea r term unles s te rmina ted by either party a nd
ma y be extended by mutua l a greement between the c ompa ny a nd Mr. de los S antos .
Dis ney O nline completed the ac quis ition of I nternet
a ss ets from K a boose Inc . (T S X : K AB ).
O penwa ve S y stems Inc. La unches Mobi le Ana ly tics 7. 0
B eyond Commerce, Inc. Announces S ucces sfull La unch
of its i-S upply Div is ion ov er 5, 000 W idget S tores
S handa I nteractive E ntertainment L td. Announces
Unaudited Cons olidated E a rnings R esults for the F irst
Q uarter E nded Marc h 31, 2009
Page 8
Notes
quarter, the c ompany has pos ted net los s of CA D 996,942 or C AD 0. 02 ba s ic a nd diluted loss per s hare on revenue of C AD 489,621
compared to net loss of CAD 1, 343, 792 or C AD 0. 03 basic and diluted los ses per s ha re on revenue of C AD 300,250 for the s ame period a
yea r ago. Loss before other items wa s CAD 1,004, 798 compa red to C AD 1, 402,822 for th e s a me period a y ea r a go. C ash us ed in operating
a ctivities was C AD 849, 142 compa red to CAD 981, 570 for the same period a yea r a go. P urchase of property a nd equipment wa s CAD 4, 391
compared to CAD 5, 741 for the same period a year ago.
F or the nine months, the compa ny ha s pos ted net los s of C AD 4,109, 295 or C AD 0.08 bas ic and diluted loss per s hare on revenue of C A D
1,334, 463 compa red to net loss of CAD 3, 532,705 or CAD 0. 03 ba s ic a nd diluted los ses per s ha re on revenue of CA D 1,062, 182 for the
same peri od a year ago. Loss before other items wa s CA D 4,151, 076 c ompa red to C AD 3, 731,644) for the s ame period a y ear ago. C a s h
used in opera ting activities wa s CAD 3, 451,661 c ompa red to C AD 3,299, 967 for the sa me period a yea r a go. P urchase of property a nd equipm
K a pital ha s filed a la ws uit a ga ins t O AO R B C I nformation S y stems. The cla ims total R U B 69.50 mi llion (E U R 1.60 million, US D 2.25 million).
T he rea son for the c laims being lodged is R B C Information S ys tems ' not fulfilling its obligations for pa y ment of the coupon yiel d and the
commercia l paper offer (R UB 1.5 billion) in time.
2009. T he purc ha se cons idera tion is s ubject to certa in adjustments . In a rela ted trans a ction, D isne y O nline a greed to ac quire the I nternet
a ss ets from K a boose Inc . (T S X: K AB ) for CAD 23. 3 million. I n the event of termination, K aboose Inc. s ha ll pay to B arcla y s P riva te E quity a
termina ti on fee of £0. 9 million. C los ing of tra ns action is conditional on obtaining K aboos e sha reholder a pprova l a nd other cus toma ry
conditions, including rece ipt of a ny necess ary regula tory approv al. T he B oard of Direc tors of K a boos e I nc. have una nimous ly approv ed the
trans action. T he dea l is expec ted to c los e within 60 da y s.
B rian P uk ier, J effrey E lliott, Y ous ef R ehma n, Anne W eintrop, S a ndy W alk er, B ruce P ollock, J onatha n D everill, G avin Neale a nd J ohn
R owla nd of S tik ema n E lliott L LP ac ted a s the legal a dv isors to K aboose. G M P S ecurities , L td. a nd Allen & C ompany a cted as fina nc ial
a dvis ors to K aboos e I nc. P hil S a nders on a nd J ames R enahan of T ra vers S mith a cted as the legal advis ors for B a rc la ys P riva te E qui ty Ltd.
O n J une 1, 2009, P erfect W orld Co. , Ltd. announced tha t it ha s entere d into an a greement to repurchas e a tota l of 1, 203,812 s hare s of its
Cla s s A ordinary sha res and 11, 296,188 sha res of its C la s s B ordinary s hares for $52. 4 million from S B Asia Inves tment F und I I, L . P .
Dis ney O nline a greed to ac quire the Internet ass ets from K aboose I nc. (T S X : K AB ) for C AD 23. 3 million on Ma rc h 31, 2009. The purchas e
cons ideration is s ubject to certain a djustme nts . The as sets will be integrated into D is ney O nline’s extens ive line-up of web s ites. I n a related
trans action, B a rclays P rivate E quity L td. a greed to a cquire the UK operations of K aboos e I nc. for £54 million. I n the event of termina tion,
K a boose Inc . s ha ll pay to Dis ney O nline a termina tion fee of C A D 0.47 mil lion.
Clos ing of tra ns action is conditiona l on the c los ing of the B ounty transaction, obta ining K aboos e s hareholder a pprov al, c ourt approva l a nd
other cus tomary c onditi ons, including receipt of a ny neces sary regula tory approval. The B oard of Directors of K aboose In c. hav e
unanimous ly approv ed the tra nsac tion. The dea l is expec ted to c lose within 60 da ys . B ria n P uk ier, Jeffrey E lliott, Y ous ef R ehma n, Anne
W eintrop, S a ndy W a lk er, B ruc e P ol lock , J o nathan Dev erill, G avin Nea le a nd J ohn R owla nd of S tik ema n E lliott LL P acted a s the lega l
a dvis or to K a boose. G M P S ecurities, L td. and Allen & C ompa ny a cted a s financia l a dv isors to K aboose I nc.
O penwa ve S y stems Inc. announced the la unch of O penwave M obile Analy tics 7. 0, a solution that provides deep ana lytics a nd rich reporting
for mobil e devices , inc luding fea ture phones , sma rtphones, netbook s and other mobile devices . O penwav e M obile Analy tics 7. 0 is designed
to help c arriers better understand mobile data us a ge, s egmented by v arious s ubscriber demogra phic s, peak usage times , a nd identify data
cons umption patterns tha t ultima tely ca n help a n opera tor better price a nd deliver ta rgeted content to us ers, as well as better optimize their
network ba ndwidth. O penwav e M obile A na lytics 7. 0 empowers opera tors with the ability to better monitor, manage and moneti ze various
ty pes of mobile da ta traffic inc luding mobile internet, mes sa ging and socia l network ing usage, to better unders tand consumptio n patterns
a nd us er demogra phic s. T he product prov ides ea rly identifica tion of mobile data trends , ena bling opera tors to ma k e timely decisions to avoid
bandwidth and ca pa city problems a nd target busi ness opportuniti es while increas ing revenues . The offering's bus iness in telligence a nd
reporting capabilities not only desc ribe what is ha ppening in a n opera tor's network , but a ls o prov ide insight a s to why it is happeni ng and what
B eyond Commerce, I nc. announced tha t its i -S UP P LY divis ion concluded its phas ed rol l-out to more than 5, 000 pre-s old licens ees . T he firs t
5,000 stores , now on W eb sites belonging to members of L ocalAdL ink 's independent s ales force, hav e s ucces sfully la unched on s chedule.
B eyond Commerce estimates that it will crea te tens of thousa nds more storefron ts over the nex t 120 da ys . T he i-S UP P L Y widget store
a llows W eb properties to monetize exis ting traffic by s impl y cutting and pa sting a few lines of code to ins ta ntly create a s torefront on their
site. P a rticipa ting W eb properties a re able to choose from mil lions of brand name products at ev eryday low pric es a nd cus tomiz e the look
a nd feel of their storefront. i-S U P P LY crea tes a hass le free va luable ass et for W eb site owners by ha ndling merc ha ndis e s election, pric ing,
cus tomer support, billing and s hipping for any sales genera ted by the i-S U P P L Y widget. T he i-S UP P L Y widget store has crea ted a n
a dditional revenue s tream for B eyond C ommerce, which will grow exponentially in 2009. This ra pid growth will further ex tend the reac h of
L ocalAdLink 's proprietary a d network .
S handa I nterac tive E ntertainment L td. a nnounced una udited c onsolidated ea rnin gs results for the firs t qua rter ended M a rch 31, 2009. F or the
quarter, reported net revenues of C NY 1, 107.1 million ($162. 0 million), repres enting an increa s e of 42.0% from C N Y 779. 8 million y ear-ov er-
yea r. O perating income wa s MY R 455.7 milli on ($66. 7 million), repres enting a 46.0% increa s e from C N Y 312. 1 million in the firs t qua rter of
2008. Net inc ome was CN Y 361.0 mill ion ($52. 8 million), compa red with C N Y 288. 8 million in the firs t qua rter of 2008. E arnings per diluted
ADS in the firs t quarter were C N Y 5.28($0. 78), compa red with C NY 3. 94 in the first quarter of 2008. Non-G AAP net income was C N Y 374. 7
million ($54. 8 million), an increas e of 23.2% from CN Y 304. 2 million in the firs t quarter of 2008. Non-G AAP earnings per diluted AD S were
CN Y 5. 48($0.80) compared with C NY 4. 14 in the first qua rter of 2008.

Qu epas a C orp. (Nas daqC M: QPS A)
A pple Inc . (Nas daqG S : AAPL ); W izzard
S oftware C orporatio n (AME X: W ZE )
K aboo s e Inc. (T S X:K AB)
S ocialwis e, Inc. (OT CB B: S CL W)
S ites earc h Co rporation (OT CB B :S T P C) S ites ea rch C orporation Appoints J im Dix on a s V ic e
P hotoC han nel N etworks Inc.
(T S XV: PN)
DigitalPo s t Interac tive, In c.
(OT CB B: DG L P)
L o okS mart, Ltd. (Nas daqG M: LOOK )
T heS treet.c om, Inc . (Nas daqG M: T S CM) T heS treet.com, Inc. Announc es Ma nagement C hanges
P hotoC han nel N etworks Inc.
(T S XV: PN)
S park Networks , Inc . (AME X: L OV)
Figure 7. Key Developments
Source. Capital IQ
Quepasa T o V olunta rily De-Lis t S tock ; F ile F orm 15
W izz ard M edia Ac quires D istribution R ights to S ix iP hone W izza rd M edia announced the a cquis ition of the ex clus ive dis tribution rights to s ix iP hone Apps. T hes e Apps a re currently for s a le through
Apps
K a boos e I nc. F iles Articl es of Amendment
S oci a lwis e L aunc hes B illM yP a rents P ayment S y stem to
W ide P ubli c Interest a nd Ac clai m
P resi dent
P NI Digita l M edia R eports T ra ns action V olumes for the
T hird Qua rter of F isc al 2009
Digita lP os t Intera ctiv e I nc. La unches F ileS afe
L ookS mart, L td. has filed a S helf R egis tra tion in the
a mount of $0.05 million.
P hotoC ha nnel Network s Inc . wi ll C ha nge its N a me to P N I E ffectiv e J une 08, 2009, P hotoC ha nnel N etworks Inc. will c ha nge its na me to P N I D igital Media I nc.
Digita l Media Inc
S park N etwork s , Inc . , Annual G enera l M eeting, J un 08,
2009
Page 9
Quepasa Corpora tion announced tha t i t intends to voluntarily de-list the Compa ny's common s tock from the NA S DAQ S toc k M a rket.
Quepasa’s C E O, J ohn A bbott s a id: "A voluntary delis ting from NAS D AQ is the bes t cours e of action for the Company to ta ke at this time
given the ma ny growth initia tiv es the C ompa ny i s currently exec uting. T his a ction allows us to focus our efforts on growing the busines s on a
globa l s ca l e and building for p rofita bility . W e are enthusia s tic with the improv ement and growth in our core busin ess metrics - our ex ponentia l
growth in new users , our increas e in pa ge views a nd unique vis its and new growth in rev enues. W e believ e we ca n better focus on
a cc elera ting these metric s if we volunta rily de-lis t fro m NAS D AQ . " I n April, NAS DAQ notified the C ompany tha t it was not in c omplia nce with
Ma rk etplac e R ule 4310(c)(3), which requires the C ompany to ma intain a minimum of: (i) $2, 500,000 million in s tockholders ' equity, or (ii)
$35,000, 000 in market va lue of listed s ecurities , or (iii) net inc ome from continuing opera tions of $500, 000 in the most recently completed
fis cal year or in two of the la s t three most rec ently completed fisca l years , as required by NAS D AQ M ark etplac e R ule 4310(c)(3). T he C ompan
Apple's App S tore for use on i P hones a nd the iP od T ouch inc luding: B lue Attack , OmNomN om, S udoku Unlimited, Touc hS ca n, B lue
Defense a nd S udoku C la s si c. B a s ed on c urrent sale s figures , W izz ard es timates these Apps will generate over $228, 000 in a nnua l
revenues , after the sta ndard deduc tion of A pple's 30 % , for the c ompa ny before a ny increas ed s ales from ma rketing the Apps via the W iz zard
P odcas t N etwo rk to iP hone and iP od Touc h users . T hrough a dv ertis ing and ma rketing by W iz za rd's thousands of podca s t producers to their
highly engaged audience of iP hone a nd iP od users , W iz zard believes s ales could be s ignifica ntly highe r on an annual ba si s. T he c ompany
pla ns to continue to ac quire the rights for up to 100 alrea dy la unched and approved i P hone Apps to provide podcas t produc ers with a
continuous s tream of fres h, pa id advertising for their epis odic s hows , app developers with increa s ed s a les revenues a nd prov ide for
profitable App s ales for W izz a rd.
K a boose Inc . a nnounc ed that in connec tion with the previous ly a nnounc ed c ompletion on J une 1, 2009 of (i) the s ale of its U K subs idia ry,
K a boose Acquisition (U K ) C ompany, to R omeo B idc o Limited and (ii) the s a le of s ubs tantia lly all of its N orth American a s sets to D isney
Online, K a boos e I nc. has filed a rtic les of a mendment under the B usi ness C orporations Act (O ntario) and ha s c ha nged its name to K AB
Dis tribution Inc .
S ocia lwise I nc. la unched B illMy P arents an innova tiv e online youth pa y ment sy stem that giv es teens the freedom to shop online and pa rents
the control over thes e purchas es-a ll in a s imple, a utomated s ys tem that k eeps credit card numbers a nd other persona l information s afe a nd
sec ure.
E ffectiv e J une 1, 2009, S ites earch C orporation exec uted an employ ment agreement with J im Dix on, pursua nt to which M r. Dix on will s erve
a s the c ompa ny ’s V ice P res ident. T he a greement is for a n initial one y ear term unles s termina ted by either party and ma y be ex tended by
mutual agreement between th e c ompany a nd M r. Dixon.
P NI D igita l M edia reported tra nsac tion v olumes for the th ird qua rter of fis cal 2009. F o r the period, the compa ny record 2, 299,923 orders have
been tra nsac ted v ia the P N I D igital Media P latform thus far this quarter. T his represents a 134 % increa se in orders over the c ompara ble
period of fis cal 2008 and the 26th s tra ight quarter of reco rd orders tra nsac ted wh en comparing yea r over y ea r s ame qua rters. T o date the
a vera ge daily order volume is 36, 507, c ompa red to 15, 626 for the same peri od of fisca l 2008. Overall reta il s ales proc ess ed through the P NI
Digita l M edia P latform for reta il partners s how a n inc rease of ov er 200% compa red to the c ompa ra ble period in fiscal 2008. O rganic growth
of retail pa rtners on the P NI D igital Media P la tform c ontinues to be very s trong, up a n aggregate 20% y ea r over yea r.
Digita lP ost Intera ctive I nc. a nnounc ed it has launched the F ileS a fe, a new produc t tha t will be av ailable with in their critica lly a cclaimed family
webs ite platform. FileS afe is a n onli ne bac kup and a rc hiv al s ys tem that will ena b le a ll cons umers to s tore and s ecure any type of electronic
file, from a word document to a P D F, E x cel sprea ds heet, etc. , within an ea sy to use, drag a nd drop interfa ce that is as simple a s sending an
email. F rom the same adminis tra tive area where cus tomers downloa d ima ges and videos , they will now be a ble to uploa d ma ny differen t
critica l doc uments , preserv ing and protecting them for a lifetime.
L ookS mart, L td. has filed a S helf R egis tra tion in the amount of $0. 05 million.
On J une 4, 2009, TheS treet.c om, Inc . a ppointed G regory B arton a s E xecutiv e V ic e P resident, B us iness a nd Lega l Affairs , G enera l C ounsel
a nd S ec retary . Mr. B arton had s erved a s G eneral Couns el and S ec retary of Ma rtha S tewart L iving Omnimedia , I nc. from 2007-2008; and
previous ly serv ed as E xecutiv e V ic e P resident, Licensing a nd Leg a l Affairs , G enera l C ouns el and S ecreta ry (from 2004-2007) a nd as
E xec utiv e V ic e P resident, G eneral Couns el a nd S ec retary (from 2002-2004) of Ziff D a vis M edia I nc. On J une 4, 2009, Teres a S antos c ea s ed
to serve as G eneral C ounsel a nd S ecretary of the c ompa ny .
S park Network s, Inc ., Annual G enera l Meeting, J un 08, 2009, at 09:00 P a cific D a ylight. L oc ation: 8383 W ils hire B oul eva rd, S uite 800,
B everly H ills, C A 90211, United S ta tes. Agenda : To elec t two members to the board of directors to s erve for three-yea r terms ; to ratify the
a ppointment of E rns t & Y oung L LP as the indep endent registered publ ic a cc ounting firm of the c ompany for the yea r ending December 31,
2009; to vote on a stock holder proposal recommending tha t our board of directors a dopt a policy that the C hairman of the B oard be a n
independent director who has not previous ly s erved as a n ex ecutive officer of the compa ny ; to vote on a stock holder proposa l rega rding the
decla s sific ation of the board of directors ; a nd to trans a ct such other bus ines s a s ma y properly come before the meeting or any adjournments
thereof.
 Page 10

VALUATION
Online Gaming companies lead market-cap charts: Eleven companies in our W eb 2.0 universe top US$1 billion in
market capitalization (Figure 8). Sixty of the 93 companies have market caps under US$100 million, with 23 under US$10
million. Online gaming companies dominate the top of the list, led by Tencent Holdings with a market cap over US$18
billion.

Market C ap (US D m)
Tencent Holdings Ltd.
Neteas e.c om Inc .
S handa Interactiv e Entertainment Ltd.
S ohu.c om Inc . 2559. 9
IA C/InterA c tiveCorp. 2446.3
Changy ou. com Limited 2128.5
Giant Interactiv e Group, Inc . 2037.2
Open Tex t Corp. 1808.1
Modern Times G roup Mtg A B 1785. 0
G ree, Inc . 1457. 2
Perf ec t World Co. , Ltd. 1157. 2
V alueClick Inc . 1010.6
Chines e G amer International 937. 2
K ings of t Co. Ltd. 768.
Mix i, Inc . 709. 8 4
United Online Inc . 579. 2
NEOWIZ G ames Corporation 549. 5
S K Communic ations Co. , Ltd. 368. 1
NetDragon WebS of t, Inc . 362. 1
S hutterf ly , Inc . 338. 6
GigaMedia Ltd. 332. 8
The9 Limited 298. 2
G ungHo Online Entertainment, Inc . 290.2
G amania Digital Entertainment Co. , 258. 1
XING A G 228. 3
A c toz S of t Co. , Ltd. 221.6
OA O R B C Inf ormation S y s tems 187.3
CDC Corp. 158. 1
Openw av e S y s tems Inc . 157. 4
Tree. Com, Inc . 128. 4
DA DA S pA 128. 2
Y edangOnline Corp. 121.2
G ameOn Co Ltd. 114. 5
Myriad G roup A G 101. 4
Cy berplex Inc . 84. 1
HanbitS of t, Inc . 83. 8
Moggle, Inc 83. 5
K aboos e Inc . 76.0
J umpTV Inc . 74.9
DigitalTow n, Inc . 67. 7
G eoS entric Oyj 62. 3
TheS treet. com, Inc . 59. 4
PhotoChannel Netw orks Inc . 48. 8
Webz en Inc . 47. 6
S park Netw orks , Inc . 47. 5
B ey ond Commerc e, Inc . 42.2
A Q Interactiv e, Inc . 41.4
Eolith Co. Ltd. 40.6
Ngi G roup Inc . 40.1
Northgate Tec hnologies Limited 39.8
NeXplore Corporation 39.0
Fluid Mus ic Canada, Inc . 32. 7
Wiz z ard S oftw are Corporation 32. 0
G rav ity Co. , L td 32. 0
Dolphin Digital Media, Inc . 31. 0
S oc ialw is e, Inc . 30. 8
Y nk K orea Inc . 29. 9
S ites earch Corporation 28. 2
Frogs ter Interactiv e Pic tures A G 25. 6
DXN Holdings B hd 25. 6
B roadWebA s ia Inc . 25. 3
L ookS mart, Ltd. 22. 7
S pec trumDNA , Inc . 18. 0
J umbuc k Entertainment Pty Ltd. 16. 3
UOMO Media, Inc 15. 4
Ex tens ions , Inc . 14. 2
IA S Energy , Inc . 14. 0
L ingo Media Corporation 11. 5
A cc eleriz e New Media, Inc . 9. 7
Wynds torm Corporation 9. 2
Quepas a Corp. 8. 9
S NA P Interactiv e, Inc . 8. 1
L iv eW orld Inc . 7. 7
CornerWorld Corporation 5. 8
Worlds .c om Inc . 5. 2
Magnitude Information S y s tems Inc . 4. 6
MOK O.mobi Limited 4. 5
B right Things plc 4. 1
is eemedia Inc . 3. 2
B etaw ave Corporation 2. 9
V OIS , Inc . 2. 9
B igs tring Corp. 1. 4
DigitalPos t Interactiv e, Inc . 1. 2
Unis erve Communications Corp. 1. 1
A s s ociated Media Holdings Inc . 0. 9
The Parent Company 0. 5
ZipLoc al Inc . 0. 4
Financ ial Media G roup, Inc . 0. 2
Total S port Online A S 0. 1
China G atew ay Corporation 0. 0
S NM G lobal Holdings 0. 0
Dibz International, Inc . 0. 0
S oc ial Media V enures , Inc . 0. 0
0 500 1, 000 1,500 2, 000 2, 500 3,000 3, 500 4,000

Figure 8. Market Cap Ranking

Source. Capital IQ

TEV/Revenue (LTM) averages 5.4x: The overall average TEV/Revenue (LTM) multiple for our group is 5.4x (up from 4.9x
last week) (Figure 9). Two companies trade at more than 40x revenue – Dolphin Digital (OTCBB:DPDM) at 46.2x and
Gree, Inc. (TSE:3632) at 41.4x. The median is only 2.0x. Note that we exclude multiples greater than 50x. Twenty-nine
companies have multiples under 1.5x.
 0. 0
5. 0
10. 0
15. 0
20. 0
25. 0
30. 0
35. 0
40. 0
45. 0
50. 0
(x) C hina G ateway C orporation

A verage, 5. 4
O AO R B C Information S y s tems

# Companies
P erfect World C o. , Ltd.

Source. Capital IQ
Source. Capital IQ

0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
U nis erve C ommunic ations C orp.
OTCBB AQ Interac tive, Inc .

15.6
AIM T he P arent C ompany

15.3
S handa Interac tive E ntertainment L td.

Figure 9. TEV/Revenue Ranking

TSE O penwave S y s tems Inc .

13.0
HLSE Northgate T echnologies L imited

9.9
IAC /InterAc tiveC orp.
SEHK C DC C orp.
GTSM DXN Holdings B hd

9.0 8.7
T ree.C om, Inc .
OTCNO L iveW orld Inc .
XTRA Z ipLoc al Inc .
G ameO n C o Ltd.
OTCPK DADA S pA

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

AMEX J umbuc k E ntertainment P ty L td.

4.6 3.9 3.53.4

S park Network s , Inc .
TSXV S NM G lobal Holdings
SWX U nited O nline Inc.

0. 00.00. 10. 20. 20. 20. 20. 30. 30. 40. 40. 50. 60. 60. 60. 70. 80. 80. 91. 11. 1
1.
is eemedia Inc .
TSX

11.
C y berplex Inc .

11.
OSE K aboos e Inc .

11.
HanbitS oft, Inc .
KOSE

3.1 2.8 2.8 2.5 2.3

21.
S hutterfly, Inc.

31.
ASX G igaMedia L td.

1.9
41.
Modern T imes G roup Mtg AB
4
NasdaqGS
V alueC lic k Inc . 1. 51.
OM

1.9 1.4
G amania Digital E ntertainment C o. ,
9

Average TEV/LTM Revenue - By Exchange

2.

CM S K C ommunic ations C o. , Ltd.

02.

S NAP Interac tive, Inc.

0

NasdaqGM

0.8 0.6
Ac toz S oft C o. , L td.
KLSE O pen T ex t C orp.
Y edangO nline C orp.
BSE P hotoC hannel Network s Inc.

20 1 5 1 3 2 1 2 10 2 5 1 4 1 7 2 14 1 1 5 1 1 1
G ungHo O nline E ntertainment, Inc .

Eleven of the companies are Canadian (average 4.9x revenue).

RTS

0.5 0.3 0.0

Y nk K orea Inc .
T E V/LT M R evenue (x)

NetDragon WebS oft, Inc .

NE O W IZ G ames C orporation
My riad G roup AG
E olith C o. L td.
(x)
MO K O . mobi L imited
2. 12. 42. 42. 52. 52. 62. 62. 72. 82. 93. 0

X ING AG

0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0

# Companies
Ac c eleriz e New Media, Inc.
DigitalP os t Interac tive, Inc .

1
United

15.3
J umpT V Inc.
3. 43.53. 94. 2

6
Japan F rogs ter Interac tive P ic tures AG

10.9
T otal S port O nline AS

1
Finland

9.9
F luid Mus ic C anada, Inc .
United S ohu. c om Inc .

40
Mix i, Inc .

3
Taiwan C ornerWorld C orporation

6.3 6.2
K ings oft C o. L td.
4.54. 64. 64. 84.95. 55. 5

China Wiz z ard S oftware C orporation

B ey ond C ommerc e, Inc .
6.06. 6

Canada

10 11
5.8 4.9
C hangy ou. c om L imited
8. 7

1
G eoS entric O yj

4.6
Norway
9. 9

L ingo Media C orporation

11. 3

2
3.9
Germany B right T hings plc
15.3

C hines e G amer International

1
Switzerland
15. 5

T enc ent Holdings L td.

9

9
South As s oc iated Media Holdings Inc .
18.19.2

U O MO Media, Inc
24. 8

2
Australia B igs tring C orp.
37. 4

Dolphin Digital Media, Inc .

Thirteen of the companies have EBITDA multiples under 7x. The median multiple is 9.4x (vs. 8.3x last week).
Sweden
41. 4

2.8 2.3 1.9 1.4

G ree, Inc .
46.2

1
Italy
Average TEV/LTM Revenue - By Country

1
Malaysia

0.8 0.5

1
Hong Kong

1
India
Page 11

1
Russia
0.4 0.3 0.0
TEV/Revenue (LTM) by country/exchange: W e have also calculated multiples based on where the companies are listed
or domiciled. Figure 10 shows the average TEV/Revenue multiples by stock exchange. The OTCBB has the largest

TEV/EBITDA (LTM) averages 10.3x: The average multiple for the 35 companies with positive EBITDA (and multiples
number of companies (20), trading at an average multiple of 15.6x (up from 13.9x last week). On a geographic basis, the

under 100x) is 10.3x LTM EBITDA (vs. 9.3 last week), led by Tencent Holding’s (700-SEHK) 39.3x multiple (Figure 12).
United States has the most companies (40), trading at an average of 6.3x revenue (up from 5.2x last week) (Figure 11).
 Page 12

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

45. 0
39. 3
40. 0

35. 0
30. 8
30. 0 27. 7
24. 3
25. 0

20. 0
14. 4
15. 0 13. 2 13. 7 13. 7 14. 0
A verage, 10. 3 10. 7 10. 7 10. 8 10. 9 11. 2
8.9 9.3 9.4 9. 6 9. 6 10. 2
10. 0 8.6
6.5 7.2
4. 7 4. 9 5. 6 5.6
3. 8 4. 1
5. 0 2. 2 2. 5 3. 1
0. 3 0. 5
0. 0

NE O WIZ G ames C orporation

J umbuck E ntertainment P ty Ltd.

G amania Digital E ntertainment C o. , Ltd.

G ungH o O nline E ntertainment, Inc .

C hines e G amer International

O AO R B C Information S y s tems

DXN Holdings B hd

C hangy ou. c om L imited

G ameO n C o L td.

C DC C orp.

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

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

U nited O nline Inc .

S NAP Interac tive, Inc .

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

S park Network s , Inc.

G igaMedia L td.

NetDragon WebS oft, Inc.

V alueC lic k Inc .

C yberplex Inc.

S ohu. c om Inc .

IAC /InterAc tiveC orp.

Mix i, Inc .

T encent Holdings L td.

XING AG
K aboos e Inc.

Y edangO nline C orp.

Y nk K orea Inc.
S hutterfly , Inc.

K ings oft C o. L td.

DADA S pA

Actoz S oft C o. , L td.

Figure 12. TEV/EBITDA Ranking

Source. Capital IQ

TEV/EBITDA (LTM) by country/exchange: Figure 13 shows the average TEV/EBITDA multiples by stock exchange. The
OTCBB has the largest number of companies (20), trading at an average multiple of 7.2x (vs. 7.7x last week). On a
geographic basis, the United States has the most companies (40), trading at an average of 7.9x EBITDA (Figure 14).
Eleven of the companies are Canadian (average 9.8x EBITDA).

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

25.0 18.0
19.9 17.1
16.0
20.0
14.0 14.8
19.4 12.0
15.0 17.1 12.2
10.0
(x)

14.0 10.8 9.8

(x)

10.0 10.810.0 8.0 8.9 8.3

8.9 7.5 7.2 7.9
6.4 6.0 5.6
4.7
5.0 4.1 3.8 2.2 4.0 4.7
3.8
0.3
0.0 0.0
2.0
0.0 2.2 0.3
OTCBB
GTSM

NasdaqGM

0.0 0.0
SEHK

KOSE

OSE

NasdaqGS

TSE

RTS
OM

CM
XTRA

TSX

AMEX

KLSE

SWX
ASX

Germany
China

Canada

Japan
United

Hong Kong

Malaysia

Russia
Italy
South
Korea

States
Taiwan

Australia
Sweden

Switzerland

# Companies 3 2 7 1 2 4 1 14 20 5 1 2 1 2 1 1 5
# Companies 9 3 10 2 11 1 6 40 1 1 1 2 1 1

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

Source. Capital IQ

P/E (LTM) averages 16.7x: The average multiple for the 30 companies with positive earnings (and multiples under 100x)
is 16.7x LTM EPS (vs. 15.3x last week), led Tencent Holding’s (700-SEHK) 50.1x multiple (Figure 15). Ten of the
companies have P/E multiples under 10x. The median is just 13.4x.
 Page 13

P /E L T M (x)

60.0

50.1
50.0

40.0 36.2 36.3

32.8 33.5 34.1

30.0 27.4 28.2

20.8 21.8
20.0 A verage, 16.7 17.3
13.8 14.4 14.6 14.6
12.4 12.9 13.0
10.6 11.8
7.2 8.4
10.0 6.7
4.3 5.4
2.2 2.8 3.3
0.9 1.9
0.0

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

G amania Digital E ntertainment C o., Ltd.

C hines e G amer International

DXN H oldings B hd

C hangy ou.com Limited

G iant Interactive G roup, Inc.

G ameO n C o Ltd.
Modern T imes G roup Mtg AB
T he9 Limited

Neteas e.com Inc.

S handa Interactive E ntertainment Ltd.

Ngi G roup Inc.

S NAP Interactive, Inc.

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

G igaMedia Ltd.

NetDragon W ebS oft, Inc.

S ohu.com Inc.

S park Network s , Inc.

IAC /InterActiveC orp.

Worlds .com Inc.

Mix i, Inc.

T encent H oldings Ltd.

XING AG
P erfect World C o., Ltd.

Y edangO nline C orp.

K ings oft C o. Ltd.

DADA S pA

Actoz S oft C o., Ltd.

Figure 15. P/E Ranking
Source. Capital IQ

P/E (LTM) by country/exchange: Figure 16 shows the average P/E multiples by stock exchange. The OTCBB has the
largest number of companies (20), trading at an average multiple of 23.3x. On a geographic basis, the United States has
the most companies (40), trading at an average of 20.5x earnings (Figure 17). Eleven of the companies are Canadian
(average 18.3x EPS).

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

35.0 31.8 30.0
26.4
30.0 25.0
25.0 26.8 26.4 24.7
20.0 21.8 20.6
23.3 20.5
20.0 21.8
20.6 18.3
(x)
(x)

15.0
15.0 14.6
12.0
10.8 8.4 10.0 7.2
10.0 7.2 6.7 6.7
5.4 5.4
5.0 4.3 5.0 4.3
2.2
0.0 0.0 0.0 0.0
OTCBB
GTSM

SEHK

NasdaqGS
KOSE

TSE

CM

OM
XTRA

AMEX

TSX

KLSE

NYSE

SWX

Germany

Japan

United

Canada

China

Malaysia
ASX

Italy
South
Korea

States
Taiwan

Australia

Sweden

Switzerland

# Companies 2 3 7 20 2 5 2 14 4 1 2 1 1 1 1 # Companies 9 3 2 6 40 11 10 1 2 1 1 1

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

Source. Capital IQ
 Page 14

UPCOMING EVENTS
E arnings Calendar
C ompany D ate & T ime Qu arter C onf C a ll D etails
G i ga Media L td. (N a sda qG S :G I G M) T uesda y , J une 09, 2009 8:00 AM (E D T) Q 1 2009 NA

Figure 18. Earnings Calendar

Source. Company reports
 Page 15

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

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

Acce le riz e N ew Me dia, Inc. US D A CL Z OT C B B 9 .7 0.3 5 0.0 % -30. 0% 59 .1% -1 2.5 % -53 .3% -53. 3%
Actoz S of t C o., L td. KR W A 052 790 KO SE 22 1.6 3 2,50 0.0 0 23.6 % 1 18.9 % 21 2.5% 23 3.3% 3 06. 3% -9.7 %
AQ Inte ractive , Inc. JPY 3 838 TSE 4 1.4 7 5,00 0.0 0 -6.3 % 6 2.7 % 14 1.2% 12 9.4% -48 .6% -59. 0%
As s ocia ted Media H oldings Inc. US D A S MH OT C P K 0 .9 0.0 2 1 233 .3% 12 33. 3% 132 8.6 % 56 6.7% NM -60. 0%
B igstring Corp. US D B S GC OT C B B 1 .4 0.0 3 42.1 % 8.0% 13 6.8% 42 .1% -77 .3% -86. 5%
B e tawave Corpora tion US D B W AV OT C B B 2 .9 0.1 0 25.0 % -16. 7% -1 6.7% -4 7.4 % -74 .4% -76. 2%
B e yond Commerce, Inc. US D B Y OC OT C B B 4 2.2 0.9 5 -5.9 % -21. 5% 66 .7% 18 .8% -65 .5% -71. 2%
B right T hings plc GBP A IM:B G T AI M 4 .1 0.0 1 -20. 6% -34. 5% -1 4.4% 52 .3% -45 .4% -47. 6%
B roa dW ebAs ia Inc. US D B W BA OT C P K 2 5.3 0.3 0 -33. 8% -33. 8% -7 0.5% -7 7.9 % -86 .8% -89. 7%
C DC C orp. US D C H IN .A N as da qG S 15 8.1 1.4 9 -12. 4% 0.0% 79 .5% 53 .6% -50 .8% -55. 7%
C ha ngyou. com Limite d US D C Y OU N as da qG S 2,1 28. 5 3 8.7 0 8.2 % 2 8.9 % NM NM NM -5.0 %
C hina G ate wa y C orpora tion US D CGWY OT C P K 0 .0 0.0 0 1 00. 0% 1 00.0 % 0 .0% -8 6.7 % -96 .7% -95. 6%
C hine s e G amer International TWD G TS M:3 083 GT S M 93 7.2 36 6.0 0 -2.8 % 7 3.9 % 15 4.2% 31 0.3% 2 83. 2% -6.9 %
C ornerW orld C orporation US D CWR L OT C B B 5 .8 0.0 9 0.0 % -10. 0% -4 0.0% -8 0.0 % -83 .3% -88. 6%
C yberplex Inc. C AD T S X:CX TSX 8 4.1 1.5 0 -4.5 % -20. 6% 28 4.6% 43 5.7% 87.5 % -24. 6%
D ADA S pA E UR C M :DA CM 12 8.2 5.7 0 -4.1 % -14. 9% 15 .5% -1 6.7 % -55 .3% -59. 2%
D XN Holdings B hd MY R DXN KL SE 2 5.6 0.3 9 -1.3 % -12. 4% 39 .3% 20 .0% -11 .4% -17. 0%
D ibz Inte rnational, Inc. US D DIB Z OT C P K 0 .0 0.0 0 -90. 0% -90. 0% -9 0.0% -9 8.0 % -98 .0% -98. 0%
D igitalP ost Inte ra ctive , Inc. US D DG L P OT C B B 1 .2 0.0 2 6.7 % -5.3 % 30 0.0% -4 0.7 % -89 .3% -91. 6%
D igitalT own, Inc. US D DG T W OT C B B 6 7.7 2.5 0 25.0 % 0.0% -0 .8% 25 .0% -28 .6% -59. 0%
D olphin Digital Me dia, Inc. US D DP DM OT C B B 3 1.0 0.6 0 13.2 % -6.3 % 50 .0% -1 4.3 % NM -46. 9%
E olith C o. L td. KR W A 041 060 KO SE 4 0.6 70 0.0 0 -3.4 % -20. 9% 28 .4% 27 .3% -19 .5% -39. 7%
E xte ns ions , Inc. US D E XT I OT C P K 1 4.2 0.1 5 -25. 0% -25. 0% 18 5.7% 50 .0% 0.0 % -85. 1%
F inancia l Media G roup, Inc. US D F NGP OT C B B 0 .2 0.0 0 0.0 % -38. 8% -8 5.0% -9 5.7 % -99 .6% -99. 7%
F luid M us ic Ca nada, Inc. C AD T S X:F MN TSX 3 2.7 0.7 0 -6.7 % 2 7.3 % 11 2.1% 16 9.2% NM -65. 7%
F rogs te r Interactive P icture s AG E UR FR G XT R A 2 5.6 7.8 5 5.4 % -11. 1% 11 2.2% 83 .0% 65.3 % -20. 7%
G a ma nia Digital E ntertainment C o., L td. TWD 6 180 GT S M 25 8.1 5 5.8 0 -4.8 % 4 4.6 % 10 6.7% 28 2.2% 80.0 % -11. 0%
G a me On C o L td. JPY 3 812 TSE 11 4.5 11 6,70 0.0 0 -5.9 % 2 4.4 % 49 .8% -1 2.3 % -8. 1% -28. 6%
G e oS e ntric O yj E UR G E O1V H LS E 6 2.3 0.0 5 0.0 % 0.0% 66 .7% 25 .0% -16 .7% -28. 6%
G iant Intera ctive G roup, Inc. US D GA NYS E 2,0 37. 2 9.0 3 14.0 % 1 0.8 % 27 .4% 51 .3% -32 .3% -36. 2%
G iga Media Ltd. US D G IG M N as da qG S 33 2.8 6.1 6 -0.5 % -4.2 % 29 .1% 28 .3% -59 .2% -64. 2%
G ravity C o., L td US D G RV Y N as da qG M 3 2.0 1.1 5 4.5 % 1 7.3 % 79 .7% 94 .9% -14 .2% -42. 2%
G ree, Inc. JPY T S E :36 32 TSE 1,4 57. 2 6,43 0.0 0 14.2 % 2 1.8 % 41 .9% NM NM -0.8 %
G ungH o O nline E ntertainment, Inc. JPY 3 765 OS E 29 0.2 24 9,70 0.0 0 0.7 % 8 1.3 % 11 3.8% 17 7.1% 0.7 % -13. 3%
H anbitS oft, Inc. KR W A 047 080 KO SE 8 3.8 4,79 0.0 0 -9.5 % -2.2 % 50 .9% 52 .8% 34.2 % -27. 9%
IAC /InterActiveC orp. US D I ACI N as da qG S 2,4 46. 3 1 6.2 1 -2.2 % 2.7% 15 .2% -2.9% -62 .0% -67. 9%
IAS E nergy, Inc. US D I AS C .A OT C B B 1 4.0 0.2 0 -23. 1% -24. 5% 18 5.7% 56 6.7% 0.0 % -42. 9%
is ee media Inc. C AD IEE T S XV 3 .2 0.0 7 -22. 2% -41. 7% -1 2.5% 40 .0% -65 .0% -80. 0%
J umbuck E ntertainment P ty Ltd. AU D A S X:J M B AS X 1 6.3 0.4 2 -6.7 % 5.0% -6 .7% -4.5% -28 .8% -34. 4%
J umpT V Inc. C AD T S X:J T V TSX 7 4.9 0.7 4 -7.5 % 1.4% 85 .0% 13 8.7% 13.8 % -42. 2%
K a boos e Inc. C AD T S X:K AB TSX 7 6.0 0.6 1 0.0 % 1.7% 52 .5% 14 4.0% -35 .8% -39. 0%
K ings oft Co. Ltd. HKD 3 888 S E HK 76 8.4 5.4 9 4.6 % 2 1.5 % 10 4.9% 10 4.9% 50.4 % -8.0 %
Lingo Media Corporation C AD T S XV :LM T S XV 1 1.5 1.0 0 -4.8 % -5.7 % 14 .9% 0 .0% -44 .4% -49. 2%
Live World Inc. US D L VW D OT C P K 7 .7 0.2 5 1 94. 1% 2 33.3 % 21 2.5% 40 0.0% 25.0 % -26. 5%
LookS mart, Ltd. US D L OOK N as da qG M 2 2.7 1.3 3 2.3 % -12. 5% 40 .0% -1 6.4 % -68 .3% -69. 4%
M agnitude Information S ys tems Inc. US D M AG Y OT C B B 4 .6 0.0 1 -33. 3% 0.0% -4 7.4% -5 8.3 % -41 .2% -66. 7%
M ixi, Inc. JPY 2 121 TSE 70 9.8 45 5,00 0.0 0 -0.7 % -2.8 % 51 .7% -2 8.3 % -39 .9% -50. 6%
M ode rn Times G roup Mtg AB SE K MT G B OM 1,7 85. 0 21 2.5 0 -8.6 % -10. 1% 69 .3% 40 .3% -45 .5% -48. 0%
M oggle , Inc US D M MOG OT C B B 8 3.5 2.3 0 15.0 % 1 5.0 % 53 .3% NM NM 0.0 %
M OK O.mobi L imited AU D MKB AS X 4 .5 0.0 7 0.0 % -10. 8% 32 .0% 65 .0% 32.0 % -34. 0%
M yriad G roup AG C HF MYR N SWX 10 1.4 5.2 0 -9.6 % 1.0% 36 .8% -1 4.3 % -48 .0% -49. 3%
N E OW IZ G ames C orpora tion KR W A 095 660 KO SE 54 9.5 7 1,50 0.0 0 -7.3 % 1 1.0 % 92 .7% 29 8.3% 1 32. 9% -14. 8%
N etDragon W ebS oft, Inc. HKD 7 77 S E HK 36 2.1 5.3 1 -2.0 % -1.8 % 59 .0% 54 .4% -44 .2% -49. 9%
N ete as e.com I nc. US D NT E S N as da qG S 4,6 13. 2 3 7.4 9 4.7 % 2 1.2 % 72 .5% 85 .6% 63.1 % -2.2 %
N eXplore Corpora tion US D N XP C OT C P K 3 9.0 0.7 0 0.0 % 0.0% -2 2.2% -4 4.0 % NM -51. 7%
N gi G roup Inc. JPY 2 497 TSE 4 0.1 3 2,00 0.0 0 -7.8 % -3.9 % 91 .0% -3 9.0 % -74 .8% -76. 5%
N orthgate Te chnologies L imited IN R 5 900 57 BS E 3 9.8 5 4.2 0 15.2 % 2 9.7 % 76 .8% 9 .5% -85 .3% -85. 9%
Open T e xt Corp. US D O TE X N as da qG S 1,8 08. 1 3 4.3 6 -3.7 % 9.9% 16 .0% 25 .6% 3.7 % -12. 1%
Openwave S ys tems Inc. US D O PW V N as da qG S 15 7.4 1.8 9 1.9 % 5 2.4 % 14 6.1% 25 0.0% 12.5 % -8.3 %
P e rfect W orld C o., Ltd. US D P W RD N as da qG S 1,1 57. 2 2 2.6 3 0.4 % 1 5.3 % 10 8.4% 30 .7% -10 .0% -19. 4%
P hotoChannel N etwork s Inc. C AD T S XV :P N T S XV 4 8.8 1.6 0 3.9 % 3.2% -3 .0% 0 .6% -58 .4% -61. 3%
Quepa s a C orp. US D Q PSA N as da qC M 8 .9 0.7 0 -31. 4% -22. 2% -2 0.5% -6 4.6 % -72 .9% -79. 8%
OA O R B C Information S ys tems US D R BC I R TS 18 7.3 1.3 5 8.0 % 3 7.1 % 35 0.0% 62 .7% -85 .0% -85. 2%
S handa Interactive E ntertainme nt L td. US D S NDA N as da qG S 4,2 76. 8 6 1.6 4 2.3 % 3 0.5 % 81 .5% 10 8.7% 1 05. 1% -5.2 %
S hutte rf ly, Inc. US D S F LY N as da qG S 33 8.6 1 3.4 5 -11. 1% 8.2% 70 .5% 72 .4% -5. 7% -11. 9%
S K C ommunications Co., Ltd. KR W A 066 270 KO SE 36 8.1 1 1,00 0.0 0 -8.3 % 1 7.3 % 69 .2% 10 3.7% -38 .7% -44. 2%
S N AP Inte ra ctive , Inc. US D S T VI OT C B B 8 .1 0.7 5 -5.1 % 0.0% -2 1.1% 0 .1% 8.7 % -30. 6%
S N M G lobal H oldings US D S NM N OT C P K 0 .0 0.0 0 -20. 0% -33. 3% 10 0.0% -9 4.3 % -99 .9% -99. 9%
S ocia l Media V e nures , Inc. US D S MVI OT C P K 0 .0 0.0 1 -93. 3% -99. 2% -9 9.2% -9 9.7 % NM -99. 8%
S ocia lwis e, Inc. US D S CL W OT C B B 3 0.8 0.7 1 1.4 % 5 1.1 % 77 .5% -4 9.6 % -47 .0% -74. 9%
S ohu. com Inc. US D S OH U N as da qG S 2,5 59. 9 6 6.9 0 1.0 % 2 1.2 % 42 .1% 50 .6% -15 .8% -24. 0%
S ite s earch C orporation US D S TPC OT C B B 2 8.2 3.5 0 -30. 0% NM NM NM NM -30. 0%
S park N etworks , Inc. US D L OV AM E X 4 7.5 2.3 1 0.9 % -21. 2% 0 .4% -1 6.0 % -44 .1% -48. 2%
S pectrumDN A, Inc. US D S P XA OT C B B 1 8.0 0.3 7 0.0 % -5.1 % 85 .0% 76 .2% NM -38. 3%
T encent Holdings L td. HKD 7 00 S E HK 20, 843 .8 8 9.6 0 4.7 % 2 1.9 % 90 .6% 79 .2% 44.3 % -3.1 %
T he P arent C ompany US D K IDS .Q OT C P K 0 .5 0.0 2 26.7 % 5 2.0 % 90 .0% -9 7.0 % -99 .2% -99. 4%
T he 9 L imited US D NC TY N as da qG S 29 8.2 1 1.1 2 20.0 % 2 0.3 % 9 .1% -3.6% -57 .2% -61. 0%
T he S treet.com, Inc. US D T S CM N as da qG M 5 9.4 1.9 4 -1.0 % -4.0 % 4 .9% -4 6.1 % -72 .4% -75. 1%
T otal S port Online A S N OK T OS O OT C N O 0 .1 0.0 3 0.0 % 0.0% -2 5.0% -4 0.0 % -70 .0% -70. 0%
T ree.C om, Inc. US D TR EE N as da qG M 12 8.4 1 1.8 9 10.8 % 4.9% 18 3.8% 52 9.1% NM -9.0 %
U nis erve C ommunications Corp. C AD T S XV :U S S T S XV 1 .1 0.0 5 0.0 % 2 5.0 % 0 .0% 25 .0% -84 .8% -85. 7%
U nited Online Inc. US D UNTD N as da qG S 57 9.2 6.9 3 -0.4 % -7.2 % 78 .6% 8 .1% -39 .8% -43. 7%
U OMO Media , Inc US D U OMO OT C B B 1 5.4 0.1 8 12.5 % -28. 0% 20 0.0% 10 0.0% -57 .1% -83. 0%
V a lueC lick Inc. US D V CL K N as da qG S 1,0 10. 6 1 1.6 2 3.1 % 1 3.0 % 89 .6% 52 .9% -35 .2% -38. 2%
V O IS , Inc. US D V OIS OT C B B 2 .9 0.3 5 -61. 1% 1 6.7 % -5 3.3% -5 3.3 % NM -93. 8%
W ebze n Inc. US D W ZE N N as da qG M 4 7.6 4.0 2 -10. 8% 2 4.7 % 20 4.2% 43 5.3% 12.2 % -14. 2%
W iz za rd S of twa re Corpora tion US D W ZE AM E X 3 2.0 0.6 7 21.8 % 1 1.7 % 55 .8% -3 2.3 % -66 .0% -67. 3%
W orlds .com Inc. US D W DDD OT C B B 5 .2 0.1 0 0.0 % -50. 0% -2 8.6% -5 4.5 % -66 .7% -75. 0%
W ynds torm C orporation US D W YND OT C B B 9 .2 0.5 1 1 600 .0% 2 00.0 % 32 5.0% 32 5.0% -15 .0% -40. 0%
XIN G AG E UR O 1B C XT R A 22 8.3 3 1.2 1 -7.3 % 7.6% 24 .8% 12 .8% -13 .7% -18. 7%
Y e dangOnline Corp. KR W A 052 770 KO SE 12 1.2 9,67 0.0 0 -5.2 % 7.1% 52 .8% 49 .2% -17 .0% -22. 0%
Y nk K orea Inc. KR W A 023 770 KO SE 2 9.9 7,00 0.0 0 -9.1 % 1 7.4 % 10 2.6% 52 .5% -49 .6% -51. 9%
ZipLocal Inc. C AD T S XV :ZIP T S XV 0 .4 0.0 1 0.0 % 0.0% 0 .0% -5 0.0 % -96 .4% -96. 9%
H igh 1 600 .0% 12 33. 3% 132 8.6 % 56 6.7% 3 06. 3% 0.0 %
Low -93. 3% -99. 2% -9 9.2% -9 9.7 % -99 .9% -99. 9%
A vera ge 590.6 30.1% 22.6% 79.3% 65.6% -22.9% -49.2%
M edian 0.0 % 1.5% 55 .8% 27 .3% -41 .2% -48. 2%

Figure 19. Price Performance

Source. Capital IQ
 Page 16

C omparable C ompany A nalys is > W eb 2.0

V aluatio n Multiples
P rimary US D Market TE V/LT M TE V/ N TM TE V/LT M TE V/NTM
C om pany Nam e S ec to r Co untry E xc hange Tic ker Cap ($m) R evenue R evenue E BITDA E BITDA P /LT M E P S P /NT M E P S P /TangBV
Acce le rize N ew Me dia, Inc. D irect Marketing U nite d S tates OT C B B AC LZ 9. 7 3.5 x - - - - - -
Actoz S of t C o., L td. G aming S outh K ore a K OS E A 052 790 2 21. 6 2.1 x - 9.6 x - 33 .5x - 3 .8x
AQ Inte ractive , Inc. G aming J a pan TSE 3 838 41. 4 0.2 x - 2.5 x - - - 0 .7x
As s ocia ted Media Holdings Inc. Mobile U nite d S tates OT C P K AS MH 0. 9 19.2 x - - - - - -
B igstring Corp. Ins ta nt Mes s aging U nite d S tates OT C B B BS G C 1. 4 37.4 x - - - - - -
B e tawave Corpora tion Me dia U nite d S tates OT C B B B WA V 2. 9 - - - - - - 0 .4x
B e yond Commerce, Inc. S ocia l Ne tworking U nite d S tates OT C B B BYO C 42. 2 6.6 x - - - - - -
B right T hings plc S ocia l Ne tworking U nite d K ingdom AIM AIM:B G T 4. 1 15.3 x - - - - - -
B roa dW ebAs ia Inc. S ocia l Ne tworking U nite d S tates OT C P K B WB A 25. 3 - - - - - - -
C D C C orp. G aming H ong K ong N as da qG S C HIN .A 1 58. 1 0.4 x 0.5x 5.6 x 6.0x - 1 0.8 x -
C ha ngyou. com Limite d G aming C hina N as da qG S CY OU 2,1 28. 5 8.7 x 6.6x 14.4 x - 14 .6x - 1 3.2x
C hina G ate wa y C orpora tion Mobile U nite d S tates OT C P K CG W Y 0. 0 0.0 x - - - - - -
C hine s e G amer International G aming T a iwan GTS M G T S M:308 3 9 37. 2 15.5 x - 27.7 x - 36 .2x - 1 3.6x
C ornerW orld C orporation C ontent U nite d S tates OT C B B CWR L 5. 8 5.5 x - - - - - -
C yberplex Inc. Advertis ing C anada TSX T S X:C X 84. 1 1.1 x 0.8x 10.7 x 7.1x 8. 4x 9.0x 8 .3x
D AD A S pA S ocia l Ne tworking Italy CM CM:DA 1 28. 2 0.8 x - 4.7 x - 7. 2x - -
D XN Holdings B hd S ocia l Ne tworking Malays ia KL SE D XN 25. 6 0.5 x - 3.8 x - 4. 3x - 0 .5x
D ibz Inte rnational, Inc. S NS A pps U nite d S tates OT C P K D IB Z 0. 0 - - - - - - -
D igitalP ost Inte ra ctive , Inc. C ontent U nite d S tates OT C B B DGL P 1. 2 3.9 x - - - - - -
D igitalT own, Inc. S ocia l Ne tworking U nite d S tates OT C B B D G TW 67. 7 - - - - - - -
D olphin D igital Me dia, Inc. S ocia l Ne tworking U nite d S tates OT C B B DP DM 31. 0 41.4 x - - - - - -
E olith C o. L td. G aming S outh K ore a K OS E A 041 060 40. 6 2.9 x - - - - - 3 .9x
E xte ns ions , Inc. C ontent U nite d S tates OT C P K E XT I 14. 2 - - - - - - -
F inancia l Media G roup, Inc. D irect Marketing U nite d S tates OT C B B F NGP 0. 2 - - - - - - -
F luid Mus ic Ca nada, Inc. Me dia U nite d S tates TSX T S X:F MN 32. 7 4.6 x 3.9x - - - - 3 .2x
F rogs te r Interactive P icture s AG G aming G ermany XT R A F RG 25. 6 4.5 x - - - - - 2 .3x
G a ma nia D igital E ntertainment C o., L td. G aming T a iwan GTS M 6 180 2 58. 1 1.9 x - 11.2 x - 27 .4x - 3 .3x
G a me On C o L td. G aming J a pan TSE 3 812 1 14. 5 0.7 x - 3.1 x - 13 .8x - 1 .6x
G e oS e ntric O yj Mobile F inland H LS E G E O1V 62. 3 9.9 x - - - - - 1 0.7x
G iant Intera ctive G roup, Inc. G aming C hina NYS E GA 2,0 37. 2 - - - - 2. 2x 1 5.0 x 0 .4x
G iga Media Ltd. G aming T a iwan N as da qG S G IG M 3 32. 8 1.4 x 1.4x 5.6 x 6.2x 10 .6x 1 2.8 x 3 .0x
G ravity C o., L td G aming S outh K ore a N as da qG M GR VY 32. 0 - - - - - - -
G ree, Inc. S ocia l Ne tworking J a pan TSE T S E :3 632 1,4 57. 2 46.2 x - - - - - 1 8.7x
G ungH o O nline E ntertainment, Inc. Me dia J a pan OS E 3 765 2 90. 2 2.5 x - 14.0 x - - - 4 2.4x
H anbitS of t, Inc. G aming S outh K ore a K OS E A 047 080 83. 8 1.2 x - - - - - 2 .5x
IAC /InterActiveC orp. Me dia U nite d S tates N as da qG S IAC I 2,4 46. 3 0.4 x 0.4x 13.2 x 3.6x 20 .8x 3 1.8 x 1 .1x
IAS E nergy, Inc. V ide o C anada OT C B B IA S C .A 14. 0 - - - - - - -
is ee media Inc. C ontent C anada T S XV IE E 3. 2 1.1 x - - - - - 1 .7x
J umbuck E ntertainment P ty Ltd. S ocia l Ne tworking A us tralia AS X AS X:J MB 16. 3 0.8 x - 2.2 x - 6. 7x - 1 .7x
J umpT V Inc. V ide o C anada TSX T S X:J T V 74. 9 4.2 x - - - - - 3 .8x
K a boos e Inc. C ontent C anada TSX TS X:K AB 76. 0 1.1 x 1.1x 9.3 x 5.7x - - -
K ings oft Co. Ltd. G aming C hina S E HK 3 888 7 68. 4 5.5 x - 13.7 x - 17 .3x - 4 .2x
Lingo Media Corporation Le arning C anada T S XV TS XV :LM 11. 5 11.3 x - - - - - 1 1.7x
Live World Inc. S ocia l Ne tworking U nite d S tates OT C P K LV W D 7. 7 0.6 x - - - - - 3 .2x
LookS mart, Ltd. D irect Marketing U nite d S tates N as da qG M L OOK 22. 7 - - - - - - 0 .9x
Magnitude Information S ys tems Inc. S ocia l Ne tworking U nite d S tates OT C B B MAG Y 4. 6 - - - - - - -
Mixi, Inc. S ocia l Ne tworking J a pan TSE 2 121 7 09. 8 4.9 x - 13.7 x - 36 .3x - 5 .4x
Mode rn Times G roup Mtg AB Me dia S we den OM MT G B 1,7 85. 0 1.4 x 1.3x 8.9 x 1 0.8 x 5. 4x 1 2.3 x -
Moggle , Inc G aming U nite d S tates OT C B B MMO G 83. 5 - - - - - - -
MOK O.mobi L imited S ocia l Ne tworking A us tralia AS X MK B 4. 5 3.0 x - - - - - 3 .4x
Myriad G roup AG Mobile S witz erland SWX MY R N 1 01. 4 2.8 x - - - - - 4 .6x
N E OW IZ G ames C orpora tion G aming S outh K ore a K OS E A 095 660 5 49. 5 2.7 x - 10.2 x - 32 .8x - 1 6.6x
N etD ragon W ebS oft, Inc. G aming C hina S E HK 777 3 62. 1 2.6 x - 6.5 x - 13 .0x - 2 .0x
N ete as e.com I nc. G aming C hina N as da qG S NT E S 4,6 13. 2 - - - - 2. 8x 1 7.0 x 0 .8x
N eXplore Corpora tion C ontent U nite d S tates OT C P K N XP C 39. 0 - - - - - - -
N gi G roup Inc. Me dia J a pan TSE 2 497 40. 1 - - - - 11 .8x - 0 .6x
N orthgate Te chnologies L imited D irect Marketing India BS E 59 005 7 39. 8 0.3 x - - - - - -
Open T e xt Corp. C ollaboration C anada N as da qG S O TE X 1,8 08. 1 2.4 x 2.2x 9.4 x 8.2x 28 .2x 1 3.1 x -
Openwave S ys tems Inc. Mobile U nite d S tates N as da qG S OP W V 1 57. 4 0.3 x 0.3x - 3.1x - 3 0.5 x 2 .3x
P e rf ect W orld C o., Ltd. G aming C hina N as da qG S PW R D 1,1 57. 2 0.1 x 0.3x 0.1 x 0.6x 1. 9x 1 0.1 x 0 .7x
P hotoChannel N etwork s Inc. D igital Imaging C anada T S XV T S XV :P N 48. 8 2.5 x 1.7x - 5.0x - 9.7x 2 0.1x
Quepa s a C orp. S ocia l Ne tworking U nite d S tates N as da qC M QP S A 8. 9 - - - - - - -
OA O R B C Information S ys tems Me dia R us s ia R TS R B CI 1 87. 3 0.0 x - 0.3 x - - - -
S handa Interactive E ntertainme nt L td. G aming C hina N as da qG S S NDA 4,2 76. 8 0.2 x 1.2x 0.5 x 2.8x 3. 3x 1 7.2 x 1 .3x
S hutte rf ly, Inc. D igital Imaging U nite d S tates N as da qG S S FL Y 3 38. 6 1.3 x - 9.6 x 7.4x - - 2 .0x
S K C ommunications Co., Ltd. S e arch S outh K ore a K OS E A 066 270 3 68. 1 2.0 x - 30.8 x - - - -
S N AP Inte ra ctive , Inc. D ating U nite d S tates OT C B B S TVI 8. 1 2.0 x - 7.2 x - 12 .4x - 4 .8x
S N M G lobal H oldings Me dia U nite d S tates OT C P K S N MN 0. 0 1.1 x - - - - - -
S ocia l Media V e nures , Inc. S ocia l Ne tworking U nite d S tates OT C P K S MV I 0. 0 0.0 x - - - - - -
S ocia lwis e, Inc. S ocia l Ne tworking U nite d S tates OT C B B S CL W 30. 8 - - - - - - 4 0.0x
S ohu. com Inc. G aming C hina N as da qG S S OH U 2,5 59. 9 4.8 x 4.2x 10.9 x 9.5x 14 .4x 1 8.4 x 6 .9x
S ite s earch C orporation S ocia l Ne tworking U nite d S tates OT C B B STPC 28. 2 - - - - - - 4 0.1x
S park N etworks , Inc. S ocia l Ne tworking U nite d S tates AME X L OV 47. 5 0.9 x - 4.1 x - 14 .6x - -
S pectrumDN A, Inc. Me dia U nite d S tates OT C B B S P XA 18. 0 - - - - - - 4 7.1x
T encent Holdings L td. P orta l C hina S E HK 700 20,8 43. 8 18.9 x - 39.3 x - 50 .1x - 2 0.9x
T he P arent C ompany Me dia U nite d S tates OT C P K K ID S .Q 0. 5 0.2 x - - - - - -
T he 9 L imited G aming C hina N as da qG S NC T Y 2 98. 2 - - - - 0. 9x 1 2.1 x 0 .1x
T he S treet.com, Inc. Me dia U nite d S tates N as da qG M TSCM 59. 4 - - - - - - 0 .8x
T otal S port Online A S Me dia N orway OT C NO T OS O 0. 1 4.6 x - - - - - -
T ree.C om, Inc. P orta l U nite d S tates N as da qG M TR E E 1 28. 4 0.6 x 0.5x - 6.3x - - 1 .7x
U nis erve C ommunications Corp. S ocia l Ne tworking C anada T S XV T S XV :U S S 1. 1 0.2 x - - - - - -
U nited Online Inc. Me dia U nite d S tates N as da qG S U N TD 5 79. 2 1.1 x 0.9x 4.9 x 3.6x - 8.6x -
U OMO Media , Inc Me dia C anada OT C B B U OMO 15. 4 24.8 x - - - - - -
V a lueC lick Inc. Me dia U nite d S tates N as da qG S VC LK 1,0 10. 6 1.5 x 1.7x 8.6 x 6.6x - 1 8.4 x 8 .2x
V O IS , Inc. S ocia l Ne tworking U nite d S tates OT C B B VOIS 2. 9 - - - - - - 1 0.1x
W ebze n Inc. G aming S outh K ore a N as da qG M W ZE N 47. 6 - - - - - - 0 .0x
W iz za rd S of twa re Corpora tion P odcas ting U nite d S tates AME X W ZE 32. 0 6.0 x - - - - - -
W orlds .com Inc. C ontent U nite d S tates OT C B B W DD D 5. 2 - - - - 34 .1x - -
W ynds torm C orporation C ontent U nite d S tates OT C B B W YND 9. 2 - - - - - - -
XIN G AG S ocia l Ne tworking G ermany XT R A O 1B C 2 28. 3 3.4 x - 10.8 x - 21 .8x - 7 .3x
Y e dangOnline Corp. G aming S outh K ore a K OS E A 052 770 1 21. 2 2.4 x - 10.7 x - 12 .9x - 4 .5x
Y nk K orea Inc. G aming S outh K ore a K OS E A 023 770 29. 9 2.6 x - 24.3 x - - - 1 .5x
ZipLocal Inc. D irectory C anada T S XV T S XV :ZIP 0. 4 0.6 x - - - - - -
H igh 20,8 43. 8 46.2 x 6.6x 39.3 x 1 0.8 x 50 .1x 3 1.8 x 4 7.1x
Low 0. 0 0.0 x 0.3x 0.1 x 0.6x 0. 9x 8.6x 0 .0x
A vera ge 590. 6 5.4x 1.7x 10.3x 5.8x 16.7x 15.4x 7.8x
Median 41. 4 2.2 x 1.2x 9.4 x 6.1x 13 .4x 1 2.9 x 3 .3x

Figure 20. Valuation Comparison

Source. Capital IQ
 Page 17

C omparable C ompany A nalys is > W eb 2.0

Su mmary b y C ountry

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

U nited S tates 40 C hina 39, 045.2 China 3,904. 5 C hina 3, 838. 0 C hina 1,773. 4 C hina 47. 9%
C anada 11 U nited S tates 5, 304.0 S weden 1,785. 0 U nited S ta tes 3, 795. 5 S weden 262. 9 Aus tral ia 37. 2%
C hina 10 J a pan 2, 653.1 Ta iwa n 509. 3 S weden 1, 716. 0 U nited S ta tes 244. 8 T aiwa n 32. 3%
S outh K orea 9 C anada 2, 137.5 Japan 442. 2 C a na da 990. 0 C a na da 197. 2 J a pa n 25. 3%
J a pa n 6 S weden 1, 785.0 Ca na da 194. 3 S outh K orea 671. 7 J apan 126. 1 I ta ly 16. 0%
T a iwa n 3 T a iwa n 1, 528.0 R us sia 187. 3 J a pa n 492. 3 T a iwan 98. 5 S weden 15. 3%
A ustra lia 2 S outh K orea 1, 494.4 S outh K orea 166. 0 H ong K ong 389. 9 S outh K orea 87. 3 M a la ys ia 13. 7%
G ermany 2 G erma ny 253.9 Hong K ong 158. 1 T aiwan 372. 8 I taly 37. 6 R uss ia 13. 1%
S witz erla nd 1 R uss ia 187.3 United S tates 132. 6 I ta ly 235. 2 H ong K ong 30. 8 H ong K ong 7.9%
H ong K ong 1 H ong K ong 158.1 Ita ly 128. 2 R uss ia 150. 8 R uss ia 19. 7 S outh K orea 6.1%
F inla nd 1 I ta ly 128.2 G erma ny 127. 0 I ndia 117. 9 G erma ny 13. 0 S witz erla nd 1.9%
I ta ly 1 S witz erla nd 101.4 S witzerland 101. 4 M a la ys ia 78. 6 M alays ia 10. 8 U nited S ta tes -9. 9%
U nited K ingdom 1 F inland 62.3 Finland 62. 3 G ermany 58. 1 Aus tralia 2. 9 G ermany -14.7%
I ndia 1 I ndia 39.8 India 39. 8 S witz erla nd 40. 0 S witz erland 0. 8 C anada -21.1%
S weden 1 M alays ia 25.6 Malay sia 25. 6 Aus tra l ia 15. 2 N orway -1. 0 I ndia -23.5%
R us sia 1 Aus tra lia 20.8 Australia 10. 4 F inla nd 5. 9 U nited K ingdom -1. 8 N orway -50.6%
M a la ys ia 1 U nited K ingdom 4.1 United K ingdom 4. 1 N orwa y 2. 1 F inland -15. 2 F inla nd #DI V /0!
N orway 1 N orway 0.1 Norway 0. 1 U nited K ingdom 0. 3 I ndia -27. 7 U nited K ingdom #DI V /0!

G rand To tal 93 G rand T otal 54,928.8 G rand Total 590.6 G rand T otal 12,970.4 G r and T otal 2,860.1 G rand T otal 6.3%

Figure 21. Comparison by Country

Source. Capital IQ

C omparable C ompany A nalys is > W eb 2.0

Su mmary b y Ex c hange

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

OT C B B 20 SE HK 21, 974.2 S E HK 7,324. 7 OM 1, 716. 0 N a sdaqG S 1,738. 4 S EHK 42. 6%

N as da qG S 14 N asdaqG S 21, 865.0 NY S E 2,037. 2 N a sda qG S 484. 6 S E HK 662. 7 AS X 37. 2%
OT C P K 10 TSE 2, 362.9 OM 1,785. 0 S E HK 472. 9 OM 262. 9 GT SM 36. 3%
K OS E 7 NYS E 2, 037.2 Na s daqG S 1,561. 8 CM 235. 2 TSE 107. 4 N asdaqG S 29. 7%
TSE 5 OM 1, 785.0 G TS M 597. 6 NYS E 218. 9 K OS E 80. 3 TSE 26. 8%
N as da qG M 5 K OS E 1, 414.8 TS E 472. 6 R TS 150. 8 GT S M 52. 5 OS E 18. 0%
T S XV 5 GTS M 1, 195.2 OS E 290. 2 BSE 117. 9 CM 37. 6 CM 16. 0%
TSX 4 OT CB B 382.1 K OS E 202. 1 OS E 104. 6 R TS 19. 7 OM 15. 3%
S E HK 3 OS E 290.2 RT S 187. 3 GT S M 91. 2 OS E 18. 8 K LS E 13. 7%
A ME X 2 N asdaqG M 290.1 CM 128. 2 K OS E 87. 1 XTR A 13. 0 R TS 13. 1%
XT R A 2 TSX 267.8 XT R A 127. 0 N a sda qG M 81. 1 K LS E 10. 8 K OS E 5.4%
ASX 2 XT R A 253.9 SWX 101. 4 K LS E 78. 6 AM E X 6. 6 SWX 1.9%
GT SM 2 R TS 187.3 TS X 66. 9 TSE 77. 5 AS X 2. 9 N asdaqG M 1.6%
S WX 1 CM 128.2 HL S E 62. 3 TSX 41. 1 TSX 0. 9 O T CB B -5. 3%
H LS E 1 SWX 101.4 Na s daqG M 58. 0 SWX 40. 0 SWX 0. 8 TSX -13.5%
NYS E 1 OT CP K 87.6 BS E 39. 8 AM E X 29. 9 NYS E 0. 0 XT R A -14.7%
CM 1 AM E X 79.5 AME X 39. 8 XT RA 29. 1 OT CN O -1. 0 BSE -23.5%
B SE 1 T S XV 64.9 KLS E 25. 6 OT CP K 18. 9 AI M -1. 8 T S XV -25.2%
N as da qC M 1 H LS E 62.3 O TC B B 19. 1 T S XV 9. 5 N a sdaqG M -8. 1 AM E X -34.9%
OS E 1 BS E 39.8 TS X V 13. 0 AS X 7. 6 T S XV -8. 5 O T CP K -41.3%
A IM 1 KLS E 25.6 AS X 10. 4 HLS E 5. 9 N a sdaqC M -10. 8 O T CN O -50.6%
OM 1 AS X 20.8 Na s daqC M 8. 9 OT CB B 2. 1 HLS E -15. 2 N asdaqC M #DI V /0!
R TS 1 N asdaqC M 8.9 O TC P K 8. 8 OT CN O 2. 1 BSE -27. 7 H LS E #DI V /0!
K LS E 1 AI M 4.1 AIM 4. 1 AI M 0. 3 OT CP K -32. 7 NYS E #DI V /0!
O T C NO 1 OT CN O 0.1 O TC NO 0. 1 N a sda qC M 0. 1 OT CB B -49. 3 AI M #DI V /0!

G rand To tal 93 G rand T otal 54,928.8 G rand Total 590.6 G rand T otal 150.8 G r and T otal 2,860.1 G rand T otal 6.3%

Figure 22. Comparison by Exchange

Source. Capital IQ
 Page 18

Financ ing - Las t Three Months (US $ m)

Mo nth Co mpany N ame C ountry Angel/S eed Debt financ ing P IP E S eries A S eries B S eries C S eries D G rand To tal
A pr-09 Co llec tive Media US A 20. 0 20. 0
G OOM R adio F rance 16. 0 16. 0
Marin S oftware US A 13. 0 13. 0
The R ubic o n P rojec t US A 8. 0 5. 0 13. 0
FreeW heel US A 12.0 12. 0
Cellufun US A 10. 0 10. 0
Co nduc to r Inc . US A 10. 0 10. 0
S c anS c o ut US A 8. 1 8.1
Batanga US A 7.5 7.5
Viximo US A 5. 0 5.0
Do ubleT wis t US A 5. 0 5.0
IMS hopping US A 4.7 4.7
S oc ialtext US A 4.5 4.5
Mixerc as t US A 4. 1 4.1
S oundClo ud G ermany 3.3 3.3
TubeMogul US A 3.0 3.0
Tribal No va C ana da 2. 5 2.5
Tripbas e US A 2.0 2.0
S oc ialc as t US A 1.4 1.4
Brandtology S ingapore 1.4 1.4
S c an & Tar get F rance 1. 3 1.3
J odange US A 1. 2 1.2
Fo odis ta US A 0.6 0.6
A pr-09 T otal 15.6 8. 0 45.3 52. 5 16.1 12.0 149.5

May-09 Fac eboo k US A 200.0 200.0

One Net E ntertainment C hina 10.0 10.0 20. 0
Cyberplex C ana da 12.9 12. 9
P eer39 US A 10.5 10. 5
OpenX UK 10.0 10. 0
Imeem US A 8. 8 8.8
E veryZing US A 8. 3 8.3
Wo nderHill US A 7.0 7.0
BlogHer Inc . US A 7. 0 7.0
Fuhu Inc . US A 6. 3 6.3
Azuki S ys tems US A 6.0 6.0
I Lo ve R ewards C ana da 5. 9 5.9
TimeBridge US A 5. 0 5.0
OLX US A 5. 0 5.0
Do c uS ign US A 5.0 5.0
Medialets US A 4. 0 4.0
Res o nate Netwo rks US A 2.0 2.0
Mo'Minis I srael 1.5 1.5
VoxP o p US A 1. 5 1.5
Lo op'd N etwork US A 0. 8 0.8
May-09 T otal 13.6 10.0 22.9 23.3 18. 7 40.8 205.0 334.1

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

G rab N etwo rks US A 12.0 12. 0
beeT V US A 8. 0 8.0
G ameG ro und I srael 4. 1 4.1
RingRevenue US A 3.5 3.5
my6s ens e I srael 2.0 2.0
Cliqs et US A 1. 5 1.5
Mas hLo gic US A 0. 5 0.5
J un-09 T otal 6. 1 12.0 5.5 8.0 16.0 47.6

Figure 23. Financing, Last Three Months

Source. Company reports
 Page 19

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
beeTV U nited S ta tes www.bee.tv beeTV is y our v iewer’s own pers ona l c ha nnel tha t a ntic ipa tes their viewi ng needs a nd desi res while ta k ing i nto context their sc hedule,
beha viors a nd even their mood. I t uses a rev olutionary , proprietary, contex tual matching algorithm inc orpora ti ng “huma n unders tanding” to
offer y our viewer a n entertaining, person alized “cha nnel” a cces sible from a ll three sc reens - T V , mobile and P C . beeTV s ervices I P TV , ca ble,
satellite, mo bile, internet a nd D TT platforms . It is a complement to your exis ting na viga tion sy stem. It is a find engine rather tha n a s ea rch
engine.
C liqs et U nited S ta tes www.cliqset.com C liqs et, Inc . provides an online pla tform tha t allows developers a nd us ers to crea te, orga niz e, retrieve, s hare, and manipulate s ocia l
informa tion on the W eb, des ktop, a nd mobile env ironments. It brings together photos, bookmarks , a nd locations . The compa ny ’s pla tform
cons is ts of AP Is for managing va rious aspec ts of users ’ soc ia l identity giving the a bility to build s oc ial applic ations without recrea ting the
wheel. C liqs et, I nc. wa s founded in 2008 and is bas ed i n J a ck s onville, F lorida.
G am eG roun d I s ra el www.gameground.com G a meG round dev elops an onl ine s ocia l network for gamers . The compa ny is bas ed in I srael.
G rab N etworks U nited S ta tes www.grabnetworks.com G ra b N etworks , I nc. di stributes a nd monetiz es vi deo content on the I nternet. G ra b Network s, I nc. was formerly known as Any S trea m, I nc .
a nd c ha nged its name to G rab N etworks , I nc. in S eptember 2008. T he c ompany was founded i n 2000 a nd is headqua rtered in D ulles,
Mas h Logic U nited S ta tes www.mashlogic.com V
Mairginia .
s hLogic I nc. enga ges in developing cus tomized web brows ers. The company was founded in 2007 a nd is ba sed in Menlo P ark, C alifornia.

m y6s ens e I s ra el www.my6sense.com my 6s ense Inc . prov ides mobi le technology s olutions. I t offers D igita l I ntuition tha t c onnec ts us ers with content providing wa y to experienc e
informa tion on mobile and desk top. The compa ny wa s founded in 2007 a nd is ba s ed in Herz liya P itua ch, I s ra el.
R ing R evenu e U nited S ta tes www.ringrevenue.com R ing R ev enue, I nc. prov ides online call trac k ing s ervices . The company was incorporated in 2009 a nd is ba sed in S a n ta B arba ra , C a lifornia .
S ugar In c. U nited S ta tes www.sugarinc.com S uga r, I nc. operates a s an online media compa ny . It operates lifes ty le a nd enterta inment W ebsites that cov er celebrity, fa s hion, shopping,
bea uty , entertainment, food, a nd hea lth topics . T he c ompany also offers a shopping engine for fa s hion and beauty categories . S ugar, I nc. ,
formerly k nown as S uga r P ublishing, I nc ., wa s founde d in 2006 and is hea dqua rtered in S a n Francisc o, C alifornia.

Figure 24. Company Descriptions

Source. Company reports, Capital IQ, Crunchbase
 Page 20

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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