Web 2.

0 Weekly
“DST cashes up and then spends more”
April 20, 2010

David Shore, CFA, MBA 416.860.6784

dshore@mackieresearch.com
Damian Wojcichowsky, CFA 416.860.7652

This report has been created by Analysts that are employed by Mackie Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report.
www.mackieresearch.com

Copyright © 2000-2010, Mackie Research Capital Corporation, All rights reserved www.mackieresearch.com
 Key Developments

Tencent (SEHK:700) invests $300mm in Digital Sky Technologies (investor in Facebook, Zynga etc.)

DST invests $135mm in Groupon at $1.2b valuation

Frogster Interactive Pictures AG (XTRA:FRG) reported revenue for 2009 rose 6x to Euro16.7mm with
net profit of Euro2.3mm

Webzen Inc. (KOSE: A069080) signed an agreement to acquire NHN Games Co., Ltd. for
approximately KRW 240b

The9 Limited (NasdaqGS:NCTY) reported consolidated earnings results for the fourth quarter and full
year ended December 31, 2009. For the quarter, the company reported loss from operations of RMB
220.2mm on revenue of RMB22.5mm

NetDragon WebSoft, Inc. (SEHK:777) announced unaudited consolidated earnings results for the fourth
quarter ended December 31, 2009. For the quarter, the company reported operating profit of RMB
1,584,000 on revenues of RMB 134,190,000.

2 www.mackieresearch.com
 Public Company Data

3 www.mackieresearch.com
 Aggregate Public Data
Web 2.0 Public Companies Total Median Max Min
# Companies 98 - - -
Market Cap (US$ mm) 81,864.6 76.0 37,060.2 1.7
Revenue (US$ mm) 90,908.6 22.7 67,563.7 0.0
1 Year revenue growth 4.3% 1178.9% -91.4%
EBITDA as % of revenue - 5.9% 62.7% -91.9%
Net cash (US$ mm) 9,008.8 1.5 1,754.9 -732.7
TEV/Revenue - 1.9x 46.6x 0.1x
TEV/EBITDA - 8.7x 43.5x 0.1x
P/E - 14.1x 92.7x 0.0x
Relative to 52 week high -32.1% -1.9% -98.1%

Source: CapitalIQ

4 www.mackieresearch.com
 5
0
5
10
15
20
25
30
Gaming

26
Social Networking

16
Media

10

6
Diversified

6
Marketing

5
Mobile

Source: CapitalIQ
4
Advertising

3
Infrastructure

3
SMS/Voice

3
Enterprise

2
Internet Retail

2
Virtual World
By Sector

2
Dating

2
Music

1
Vertical Communities

1
Collaboration

1
Podcasting

1
Search

1
Video

1
Learning

1
Payment

1
Financial Services
Public Company Distribution

0
5
10
15
20
25
30
35
40
45

United States

Canada

China

South Korea

Japan

Taiwan

Germany

Australia

United Kingdom

Poland

Malaysia

Russia
By Country

Finland

Sweden

Hong Kong

India

Italy

Switzerland

Israel
www.mackieresearch.com
 Valuation Dashboard – 1 Week
Market Cap EV/Revenue
Flat
Flat
10% 4%

Rising
38%
Falling
43% Rising
53%

Falling
52%

EV/EBITDA P/E

Flat Flat
5% 0%

Falling
Falling 43%
41% Rising
Rising
54%
57%

6 www.mackieresearch.com
 7
Source: CapitalIQ
Multiple (x)

0.0x
0.5x
1.0x
1.5x
2.0x
2.5x
3.0x
3.5x
4.0x
4.5x
5.0x

# companies
3/2/2009
3/9/2009
3/16/2009
3/23/2009
3/30/2009
4/6/2009
4/13/2009
4/20/2009
4/27/2009
5/4/2009
5/11/2009
5/18/2009
5/25/2009
6/1/2009
6/8/2009
6/15/2009
Median EV/Revenue

6/22/2009
6/29/2009
7/6/2009
7/13/2009
7/20/2009
7/27/2009
8/3/2009
8/10/2009
8/17/2009
8/24/2009
8/31/2009

Median
9/7/2009
9/14/2009
9/21/2009
9/28/2009
10/5/2009
10/12/2009
10/19/2009
10/26/2009
11/2/2009
11/9/2009

Long-term average
11/16/2009
11/23/2009
11/30/2009
12/7/2009
12/14/2009
12/21/2009
12/28/2009
1/4/2010
1/11/2010
1/18/2010
1/25/2010
2/1/2010
recovering but

2/8/2010
below LT Average
Revenue multiples

2/15/2010
2/22/2010
3/1/2010
3/8/2010
3/15/2010
3/22/2010
3/29/2010
4/5/2010
4/12/2010
4/19/2010
373837393939404039414142434444444445474848484750535356585761636364616162666868697168646870716873717475777575747678788280

www.mackieresearch.com
 8
Source: CapitalIQ
Multiple (x)

# companies
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
3/2/2009
3/9/2009
3/16/2009
3/23/2009
3/30/2009
4/6/2009
4/13/2009
4/20/2009
4/27/2009
5/4/2009
5/11/2009
5/18/2009
5/25/2009
6/1/2009
Median EV/EBITDA

6/8/2009
6/15/2009
6/22/2009
6/29/2009
7/6/2009
7/13/2009
7/20/2009
7/27/2009
8/3/2009
8/10/2009
8/17/2009
8/24/2009
8/31/2009

Median
9/7/2009
9/14/2009
9/21/2009
9/28/2009
10/5/2009
10/12/2009
10/19/2009
10/26/2009
11/2/2009
11/9/2009
11/16/2009

Long-term average
11/23/2009
11/30/2009
12/7/2009
12/14/2009
12/21/2009
12/28/2009
1/4/2010
1/11/2010
1/18/2010
1/25/2010
below LT average
remain depressed

2/1/2010
2/8/2010
EV/EBITDA multiples

2/15/2010
2/22/2010
3/1/2010
3/8/2010
3/15/2010
3/22/2010
3/29/2010
4/5/2010
4/12/2010
4/19/2010
2120 2022 22 2323 2222 2324 2322 2424 26 2626 2626 2526 2628 30 2830 3334 3640 3738 3638 39 3837 3740 4140 4041 41 4143 4243 4342 4848 4748 49 4947 4745

www.mackieresearch.com
 9
Source: CapitalIQ
Multiple (x)

# companies
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
30.0x
3/2/2009
3/9/2009
3/16/2009
Median P/E

3/23/2009
3/30/2009
4/6/2009
4/13/2009
4/20/2009
4/27/2009
5/4/2009
5/11/2009
5/18/2009
5/25/2009
6/1/2009
6/8/2009
6/15/2009
6/22/2009
6/29/2009
7/6/2009
7/13/2009
7/20/2009
7/27/2009
8/3/2009
8/10/2009
8/17/2009
8/24/2009
8/31/2009

Median
9/7/2009
9/14/2009
9/21/2009
9/28/2009
10/5/2009
10/12/2009
10/19/2009
10/26/2009
11/2/2009
11/9/2009
11/16/2009

Long-term average
11/23/2009
11/30/2009
12/7/2009
12/14/2009
12/21/2009
12/28/2009
1/4/2010
1/11/2010
1/18/2010
1/25/2010
2/1/2010
below LT average

2/8/2010
P/E multiples also

2/15/2010
2/22/2010
3/1/2010
3/8/2010
3/15/2010
3/22/2010
3/29/2010
4/5/2010
4/12/2010
4/19/2010
1719 2019 18 1818 1919 1920 1918 1919 19 2021 2425 2525 2526 26 2629 3030 2932 3132 3235 36 3636 3637 3839 3737 37 3635 3632 3130 3332 3232 32 3232 3130

www.mackieresearch.com
 10
-
5.0
10.0
15.0
20.0
25.0

# Companies 2
Infrastructure

3
SMS/Voice

7
Social Networking

4
Diversified

2
Music

1
Learning

5
Marketing

4
Mobile

1
Vertical Communities

Gaming

20
1
Podcasting

1
Collaboration
EV/Revenue

1
Search

1
Video

4
Advertising

2
Internet Retail

3
Enterprise

2
Dating

9
Media

1
Financial Services

1
Virtual World

-
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
Average Valuation – by Sector

# Companies
1
Search
2

Enterprise
4

Diversified
1

Mobile
6

Media
1

Collaboration
2

Internet Retail
5

Social Networking
EV/EBITDA

Financial Services

Gaming
12
3

Marketing
1

Dating
1

Advertising
www.mackieresearch.com
 11
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0

0.1
Perfect World Co., Ltd.
Ngi Group Inc.
Asknet AG

0.20.20.2
Cyberplex Inc.

Source: CapitalIQ
RealNetworks Inc.
Jumbuck Entertainment Limited
Betawave Corporation

0.40.40.40.4
Tree.Com, Inc.
Uniserve Communications Corp.
Actoz Soft Co., Ltd.
Glu Mobile, Inc.
GameOn Co Ltd.
Points International Ltd.

0.40.40.50.50.50.5
GigaMedia Ltd.

0.6
Openwave Systems Inc.
Northgate Technologies Limited

0.70.7
DADA SpA
Internet Group SA
IAC/InterActiveCorp.
TheStreet.com, Inc.
AOL, Inc.
CDC Corp.
United Online, Inc.
CornerWorld Corporation
AQ Interactive, Inc.
The New York Times Company
EV/Revenue Ranking

OAO RBC Information Systems

Beyond Commerce, Inc.
Gamania Digital Entertainment Co., Ltd.
infoGROUP, Inc.
HanbitSoft, Inc.
YD Online Corp.
ValueClick, Inc.
0.80.80.80.90.90.9 1.0 1.0 1.0 1.2 1.2 1.2 1.3 1.3 1.5 1.6 1.6

Spark Networks, Inc.

NetDragon WebSoft, Inc.
Ynk Korea Inc.
Shutterfly, Inc.
Score Media Inc.
SNAP Interactive, Inc.
PNI Digital Media Inc.
Velti Plc
Modern Times Group Mtg AB
NeuLion Incorporated
XING AG
Oriented Media Group Berhad
UOMO Media, Inc
1.6 1.7 1.8 1.9 1.9 2.1 2.12.22.22.3 2.32.32.4

GungHo Online Entertainment, Inc.

SK Communications Co., Ltd.
Sohu.com Inc.
Myriad Group AG
Webzen Inc.
Open Text Corp.
iseemedia Inc.
NEOWIZ Games Corporation
revenue multiple

2.6 2.73.0 3.23.23.23.33.3

Wizzard Software Corporation

Taleo Corp.
Spectrum has highest

DigitalPost Interactive, Inc.

4.1 4.5 4.7

WebMediaBrands Inc
Kingsoft Corporation Limited
Changyou.com Limited
5.4 5.45.5

Lingo Media Corporation

Accelerize New Media, Inc.
6.0 6.4

Mixi, Inc.
Frogster Interactive Pictures AG
7.8 8.4

Unilava Corporation
HUGHES Telematics, Inc.
Fluid Music Canada, Inc.
9.39.4 9.9

Gree, Inc.
Chinese Gamer International
12.4
15.4

GeoSentric Oyj
Paid Inc.
20.0

MOKO.mobi Limited
20.6

Tencent Holdings Ltd.

22.2

Bright Things plc

31.4

SpectrumDNA, Inc.
46.6

www.mackieresearch.com
 12
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
Perfect World Co., Ltd.

Jumbuck Entertainment Limited

0.1 0.9

Source: CapitalIQ
GameOn Co Ltd.

Actoz Soft Co., Ltd.

Cyberplex Inc.
AOL, Inc.

2.1 2.2 2.3 2.6

United Online, Inc.

4.5
ValueClick, Inc.

Sohu.com Inc.

5.7 6.2
YD Online Corp.

Gamania Digital Entertainment Co., Ltd.

DADA SpA
infoGROUP, Inc.
EV/EBITDA Ranking

Spark Networks, Inc.

The New York Times Company

CDC Corp. 6.9 7.1 7.2 7.5 7.5 7.8

Uniserve Communications Corp.

XING AG

PNI Digital Media Inc.

Changyou.com Limited

NetDragon WebSoft, Inc.

7.9 8.2 8.4 8.4 8.6 8.7

Tree.Com, Inc.

Velti Plc
9.7 10.3

GungHo Online Entertainment, Inc.

10.7

Open Text Corp.

NEOWIZ Games Corporation

11.8 12.1

Kingsoft Corporation Limited

Score Media Inc.

12.8 13.4

Shutterfly, Inc.
Tencent has
highest valuation

IAC/InterActiveCorp.

Openwave Systems Inc.

13.9 14.0 14.0

Ynk Korea Inc.

Modern Times Group Mtg AB

Gree, Inc.
16.5 16.6 16.8

Mixi, Inc.
21.3

Chinese Gamer International

22.9

TheStreet.com, Inc.
28.9

Taleo Corp.
31.6

SK Communications Co., Ltd.

39.6

Tencent Holdings Ltd.

43.5

www.mackieresearch.com
Excluding EV/EBITDA > 100x
 13
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0

Source: CapitalIQ
Perfect World Co., Ltd.

1.8
Shanda Interactive Entertainment Ltd.

1.9
Giant Interactive Group, Inc.

2.1
Netease.com Inc.

2.5
P/E Ranking

Jumbuck Entertainment Limited

4.4
Cyberplex Inc.

6.3
GigaMedia Ltd.

6.4
YD Online Corp.

8.3
United Online, Inc.

DADA SpA

AOL, Inc.

Changyou.com Limited

GameOn Co Ltd.
10.5 11.2 11.5 11.6 11.9

Sohu.com Inc.

ValueClick, Inc.
14.0 14.3

Kingsoft Corporation Limited

18.2

CDC Corp.

Velti Plc
P/E

20.4 20.9

Gamania Digital Entertainment Co., Ltd.

22.4

NetDragon WebSoft, Inc.

26.1
Actoz has highest

Chinese Gamer International

29.8

Gree, Inc.
33.2

NEOWIZ Games Corporation

35.6

Open Text Corp.

40.4

Tencent Holdings Ltd.

Mixi, Inc.
56.4 56.6

GungHo Online Entertainment, Inc.

61.2

HanbitSoft, Inc.
88.1

Actoz Soft Co., Ltd.

92.7

www.mackieresearch.com
 14
Source: CapitalIQ
(US$m)

# companies
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000

4/27/2009
5/4/2009
5/11/2009
5/18/2009
5/25/2009
6/1/2009
6/8/2009
6/15/2009
6/22/2009
6/29/2009
7/6/2009
7/13/2009
7/20/2009
7/27/2009
8/3/2009
8/10/2009
8/17/2009
8/24/2009
8/31/2009
9/7/2009
9/14/2009
9/21/2009
9/28/2009
10/5/2009
10/12/2009
10/19/2009
10/26/2009
11/2/2009
11/9/2009
11/16/2009
11/23/2009
Total Market Capitalization - $80B

11/30/2009
12/7/2009
12/14/2009
12/21/2009
12/28/2009
1/4/2010
1/11/2010
1/18/2010
1/25/2010
2/1/2010
2/8/2010
2/15/2010
2/22/2010
3/1/2010
3/8/2010
3/15/2010
3/22/2010
3/29/2010
4/5/2010
4/12/2010
4/19/2010
94 94 94 94 93 94 94 94 94 94 94 94 94 94 94 94 94 94 94 93 94 94 94 94 94 94 94 94 94 95 95 97 97 97 97 97 97 97 97 97 97 97 97 98 98 98 98 98 98 98 98 98

www.mackieresearch.com
 15
-

# Companies
5,000.0
10,000.0
15,000.0
20,000.0
25,000.0
30,000.0
35,000.0
40,000.0
45,000.0

6
Diversified

Gaming

26
Media

10
Social Networking

16
1
Collaboration

6
Marketing

3
Enterprise

2
Internet Retail

1
Search

5
Mobile
Total Market Cap – by Sector

3
SMS/Voice

2
Music

1
Financial Services

2
Dating

2
Virtual World
1
Video
4

Advertising
over $17b in market cap

Vertical Communities
26 Gaming companies totaling

Payment
3

Infrastructure
1

Podcasting
1

Learning
www.mackieresearch.com
 16
0
1,000
2,000
3,000
4,000
5,000
6,000
BroadWebAsia Inc.
UOMO Media, Inc
CornerWorld Corporation
Uniserve Communications Corp.

Source: CapitalIQ
Mobile Data Corp.
Betawave Corporation
Beyond Commerce, Inc.
DigitalPost Interactive, Inc.
En2Go International, Inc.
Kiwibox.Com, Inc.
Worlds.com Inc.
Kent International Holdings Inc.
SpectrumDNA, Inc.
Real Value Estates, Inc.
Oriented Media Group Berhad
Bright Things plc
Sahara Media Holdings, Inc.
SNAP Interactive, Inc.
Lingo Media Corporation
iseemedia Inc.
VOIS, Inc.
MOKO.mobi Limited
Jumbuck Entertainment Limited
IAS Energy, Inc.
Internet Group SA
Northgate Technologies Limited
Wizzard Software Corporation
Accelerize New Media, Inc.
LookSmart, Ltd.
Dolphin Digital Media, Inc.
Ynk Korea Inc.
Asknet AG
Market Cap Ranking

NeXplore Corporation
Socialwise, Inc.
Glu Mobile, Inc.
WebMediaBrands Inc
Multiplied Media Corporation
Unilava Corporation
Cyberplex Inc.
GeoSentric Oyj
DigitalTown, Inc.
Quepasa Corp.
PNI Digital Media Inc.
Gravity Co., Ltd
Score Media Inc.
Points International Ltd.
Frogster Interactive Pictures AG
Ngi Group Inc.
NeuLion Incorporated
Spark Networks, Inc.
Moggle, Inc
YD Online Corp.
AQ Interactive, Inc.
HanbitSoft, Inc.
Paid Inc.
Tree.Com, Inc.
Fluid Music Canada, Inc.
DADA SpA
Actoz Soft Co., Ltd.
GameOn Co Ltd.
TheStreet.com, Inc.
Webzen Inc.
GigaMedia Ltd.
The9 Limited
Velti Plc
Myriad Group AG
XING AG
OAO RBC Information Systems
Openwave Systems Inc.
Gamania Digital Entertainment Co.,
dominates group

HUGHES Telematics, Inc.

NetDragon WebSoft, Inc.
CDC Corp.
GungHo Online Entertainment, Inc.
infoGROUP, Inc.
Tencent’s $37b market cap

SK Communications Co., Ltd.

RealNetworks Inc.
Shutterfly, Inc.
United Online, Inc.
NEOWIZ Games Corporation
ValueClick, Inc.
Kingsoft Corporation Limited
Chinese Gamer International
Mixi, Inc.
Taleo Corp.
Changyou.com Limited
Perfect World Co., Ltd.
The New York Times Company
Giant Interactive Group, Inc.
Sohu.com Inc.
Open Text Corp.
Gree, Inc.
IAC/InterActiveCorp.
AOL, Inc.
Shanda Interactive Entertainment Ltd.
Modern Times Group Mtg AB
Netease.com Inc.
Tencent Holdings Ltd.
www.mackieresearch.com
 Price Performance – 1 week
• Negative momentum with 61% of
stocks falling or flat over past week Price Momentum

Falling
48%

Rising
Flat 39%
13%

17 www.mackieresearch.com
 Average Price Performance – 1 Week, By Sector

30.0%

25.0%
Media shows biggest
gains
20.0% 18.5%

15.0%
9.7%
10.0% 6.6%
5.0% 2.8% 2.4%
1.1% 0.3% 0.1% 0.0%
0.0%
-0.4% -0.6%
-5.0% -2.1% -2.4% -2.5% -3.3%
-3.5% -3.7%
-5.4%
-10.0% -7.2%
-11.2%-11.9%
-15.0% -12.9%

Internet Retail

Infrastructure
Collaboration

Networking

Virtual World
Financial

Payment
Communities

Learning

Advertising
Music
Search

Mobile

Diversified

Gaming

Enterprise

Marketing

Podcasting

Dating
Services
Media

SMS/Voice
Video

Social
Vertical

# companies

Source: CapitalIQ

18 www.mackieresearch.com
 19
-60.0%
-40.0%
-20.0%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
BWBA
OMEDIA
STVI
IEE

Source: CapitalIQ
TSXV:USS
SHHD
WDDD
UNLA
GLUU
SPXA
CHIN.A
RBCI
DGLP
UOMO
PAYD
CM:DA
SOHU
3888
2497
GIGM
777
PWRD
A052790
6180
GTSM:3083
SFLY
FRG
TSE:3632
590057
O1BC
WZE
AOL
SCLW
NCTY
700
GA
TSCM
NTES
MYRN
SNDA
VCLK
TSX:FMN
RNWK
2121
MKB
OTEX
TSXV:PN
Price Performance – 1 Week

KIWB
ASX:JMB
BWAV
GEO1V
ETGI
RVLU
CWRL
DB:M0C
TSX:CX
TSXV:LM
TSXV:MMC
VEL
VOIS
IUSA
KNTH
TREE
XTRA:A5A
LOV
CYOU
WSE:IGR
AIM:BGT
LOOK
HUTC
A095660
3838
A047080
WEBM
MTG B
IACI
A023770
NXPC
TLEO
MBYL
NYT
UNTD
TSX:PTS
TSX:NLN
TSX:SCR
ACLZ
QPSA
GRVY
KOSE:A069080
A066270
A052770
3812
DPDM
3765
OPWV
DGTW
IASC.A
BYOC
www.mackieresearch.com
 20
0%
20%
40%
60%
80%
100%
120%
140%
160%

0%
500%
1000%
1500%
2000%
2500%
3000%
OAO RBC IAS Energy,
Information Inc.
Systems
Beyond
AQ Interactive, Commerce,

Source: CapitalIQ
Inc. Inc.

DigitalTown,
Quepasa Corp. Inc.

Oriented Media GameOn

Group Berhad Co Ltd.

Dolphin
SNAP Digital
Interactive, Inc. Media, Inc.

6 Month
1 Month

Internet
VOIS, Inc.
Group SA

HanbitSoft,
Ngi Group Inc.
Inc.

Betawave Quepasa
Corporation Corp.

SK
Mobile Data
Communications
Corp.
Co., Ltd.

Openwave
Velti Plc Systems
Inc.
Price Performance (Top 10)

0%
1000%
2000%
3000%
4000%
5000%
6000%
0%
500%
1000%
1500%
2000%
2500%
3000%
3500%

OAO RBC OAO RBC

Information Information
Systems Systems

Quepasa IAS Energy,

Corp. Inc.

DigitalPost Beyond
Interactive, Commerce,
Inc. Inc.
Fluid Music
Canada, Unilava
Inc. Corporation

AQ
Interactive, SNAP
Interactive, Inc.
Inc.
1 Year
3 Month

VOIS, Inc. Ngi Group Inc.

Openwave
AQ Interactive,
Systems
Inc.
Inc.

TheStreet.com,
Velti Plc
Inc.

Tencent
Worlds.com
Holdings
Inc.
Ltd.

Paid Inc. Quepasa Corp.

www.mackieresearch.com
 21
-60.0%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%

-100.0%
-90.0%
-80.0%
-70.0%
-60.0%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
SpectrumDNA,
DADA SpA Inc.

Source: CapitalIQ
Glu Mobile, Inc.
GigaMedia Ltd.

Wizzard Unilava
Software Corporation
Corporation

Cyberplex Inc. Worlds.com Inc.

Northgate Sahara Media

Technologies Holdings, Inc.
Limited
1 Week

6 Month
Uniserve
CornerWorld
Communications
Corporation
Corp.

En2Go
International, iseemedia Inc.
Inc.

UOMO Media, SNAP

Inc Interactive, Inc.

BroadWebAsia Oriented Media

Inc. Group Berhad

Sahara Media BroadWebAsia

Holdings, Inc. Inc.
-60.0%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
Price Performance (Bottom 10)

-120.0%
-100.0%
-80.0%
-60.0%
-40.0%
-20.0%
0.0%

Wizzard
Worlds.com Inc.
Software
Corporation

Cyberplex Inc.
GigaMedia Ltd.

Northgate
iseemedia Inc.
Technologies
Limited

UOMO Media,
Mobile Data
Inc
Corp.

UOMO Media, SpectrumDNA,

Inc Inc.
1 Year
1 Month

CornerWorld Sahara Media

Corporation Holdings, Inc.

En2Go Uniserve
International, Communications
Inc. Corp.

Sahara Media BroadWebAsia

Holdings, Inc. Inc.

Beyond
En2Go
Commerce,
International, Inc.
Inc.

BroadWebAsia CornerWorld
Inc. Corporation
www.mackieresearch.com
 Capital Market Activity (Financing, M&A)

22 www.mackieresearch.com
 23
(US$m)

0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Oct-04
Dec-04
Feb-05
Apr-05
Jun-05
Aug-05
Oct-05
Dec-05
Feb-06
Apr-06
Jun-06
Aug-06
Financing Momentum

Oct-06
Dec-06

Total (LTM)
Feb-07
Apr-07
Jun-07
Aug-07
Oct-07
Dec-07
Feb-08
Apr-08
Jun-08
Aug-08

Average Size (LTM)

Oct-08
Dec-08
Feb-09
Apr-09
Jun-09
transactions
by large DST

Aug-09
Sharp rise driven

Oct-09
Dec-09
Feb-10
Apr-10
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0

(US$m)
www.mackieresearch.com
 Financing activity – Current Month
Month Com pany Nam e Country Sector Angel/Seed PIPE Series A Series B Series C Series D Grand Total
Apr-10 Digital Sky Technologies Russia Diversified 300.0 300.0
Groupon USA Social Commerce 135.0 135.0
Vidyo USA Video 25.0 25.0
LendingClub USA Financial Services 24.5 24.5
MokaFive USA Enterprise 21.0 21.0
BlackArrow USA Advertising 20.0 20.0
Xobni USA Social Netw orks 16.2 16.2
Box.net USA Collaboration 15.0 15.0
Prosper.com USA Financial Services 14.6 14.6
Knew ton USA Online Learning 12.5 12.5
Brightcove USA Video 12.0 12.0
EdgeCast CDN USA Media 10.0 10.0
Tynt Canada Infrastructure 8.0 8.0
PubMatic USA Advertising 7.5 7.5
Searchandise Com m erce USA Advertising 7.0 7.0
Stitcher USA Media 6.0 6.0
Cram ster USA Vertical Communities 6.0 6.0
quirky USA Social Netw orks 6.0 6.0
TellApart USA Analytics 4.8 4.8
Daily Grom m et USA Social Commerce 3.4 3.4
gdgt USA Vertical Communities 3.2 3.2
Tw eetPhoto USA Micromedia 2.6 2.6
Assistly USA Enterprise 2.2 2.2
Spredfast USA Analytics 1.6 1.6
FreshPlanet USA Gaming 1.5 1.5
NearVerse USA Location-based SNS 1.0 1.0
Zoom Safer USA Mobile 1.0 1.0
Kontagent USA Analytics 1.0 1.0
DIYSEO USA Search 1.0 1.0
MyLikes USA Advertising 0.6 0.6
Plyce France Location-based SNS 0.4 0.4
Apr-10 Total 4.0 300.0 23.1 30.2 286.7 26.6 670.5

24 www.mackieresearch.com
 Financing activity – Current Month, By Sector
# Deals $ Raised

Travel
3%
Mobile
3%
Search Social
Social
Diversified Commerce
3% Commerce
3% 18%
Location- 6%
based SNS
Media
6%
9%
Micromedia
3%
Financial
Gaming Services
6% Diversified
6%
38% Media
15%
Video
Analytics 6%
9%

Infrastructure
3% Advertising
12%
Vertical
Communities
6% Enterprise
Social 6%
Online Networks Other
Learning 6% 29%
3%
Collaboration
3%

25 www.mackieresearch.com
 Financing Activity – last three months

800.0 25.0
$370mm excl DST,
average $13.2m 21.6
700.0

20.0
600.0

500.0
15.0
12.8 12.5
(US$m)

(US$m)
400.0
10.2
8.9 9.1 10.0
300.0 8.2
6.8
5.8 5.5 5.7 5.4
200.0 4.7
5.0

100.0

0.0 0.0
Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10

*May-09 includes $200m FB investment

Dec-09 includes $180m Zynga investment
Total Average
Apr-10 includes $300m DST investment

26 www.mackieresearch.com
 27
(US$m)

0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0

# companies
1
Diversified

6
Media

9
Video
Social

3
Commerce
Advertising

16
8
Search

7
Gaming
Social

9
Networks
Financial

7
Services

6
Mobile

2
Mobile Ad
Crowdsourced

4
Content

2
Enterprise

5
Analytics
Online

2
Learning

2
Internet Retail
Vertical

5
Communities

2
Music
Mobile

1
Payment

1
Collaboration
Location-
4

based SNS
Advertising has most
deals in last 3 months

Virtual World
2

Microblog
3

Infrastructure
1

Widget
3

Travel
1

SMS/Voice
Online
1

Calendar
1

Blog
1
Capital Market Activity Ranking – by Sector, last three months

Micromedia
1

Online Dating
1

Aggregation
www.mackieresearch.com
 Top 10 Deals (2010 YTD)
Financings Acquisitions

350.0 120

300.0
300.0 100
100

250.0
80
80

200.0

60
150.0 135.0 50

100.0 40 36.5
33

50.0 21 20
25.0 20 18
24.5 21.0 20.0 16.2 15.0 14.6 12.5
8
0.0 3
Technologies

LendingClub

Knewton
Box.net
Groupon

BlackArrow
Vidyo

MokaFive

Xobni

Prosper.com
Digital Sky

0
Ankeena Mochi Aardvark StudioNow Saf-T-Net C&C Red 5 Multicast AdMarvel NuConomy
Networks Media Media Studios, Media
Inc.

DST involved in 2
largest deals YTD

28 www.mackieresearch.com
 Upcoming events/earnings
Company Date Time Quarter Conf Call Details
Modern Times Group Mtg AB (OM:MTG B) 20-Apr-10 3:00 PM (CET) Q1/10 N/A
Changyou.com Limited (NasdaqGS:CYOU) 26-Apr-10 7:00 AM (EDT) Q1/10 852-3002-1672
Sohu.com Inc. (NasdaqGS:SOHU) 26-Apr-10 8:30 AM (EDT) Q1/10 1-877-941-6009
Shutterfly, Inc. (NasdaqGS:SFLY) 28-Apr-10 2:00 PM (PDT) Q1/10 970-315-0490
Openw ave Systems Inc. (NasdaqGS:OPWV) 28-Apr-10 2:00 PM (PDT) Q3/10 877-941-1427
IAC/InterActiveCorp. (NasdaqGS:IACI) 28-Apr-10 11:00 a.m. EST Q1/10 http://w w w .iac.com/Investors
Open Text Corp. (NasdaqGS:OTEX) 29-Apr-10 5:00 PM (EDT) Q3/10 800-814-4860
Tree.Com, Inc. (NasdaqGM:TREE) 30-Apr-10 11:00 a.m. EST Q1/10 866-564-7440

Source: CapitalIQ

29 www.mackieresearch.com
 Public Company Listing Trading Current US$ Market
Com pany Nam e Ticker Exchange Currency HQ Price Cap (m m ) Em ployees
A ccelerize New M edia, Inc. ACLZ OTCBB USD United States 0.59 18.0 NA
A cto z So ft Co ., Ltd. A052790 KOSE KRW So uth Ko rea 13,200 104.1 NA
A OL, Inc. AOL NYSE USD United States 27.09 2,886.0 6,700
A Q Interactive, Inc. 3838 TSE JP Y Japan 150,000 88.4 NA
A sknet AG XTRA :A 5A XTRA EUR Germany 3.90 26.5 NA
B etawave Co rporatio n BWA V OTCPK USD United States 0 2.6 NA
B eyo nd Co mmerce, Inc. BYOC OTCBB USD United States 0.08 4.5 86
B right Things plc AIM :B GT A IM GB P United Kingdo m 0 6.8 9
B roadWebA sia Inc. BWB A OTCPK USD United States 0.02 1.7 46
CDC Co rp. CHIN.A NasdaqGS USD Ho ng Ko ng 3 303.5 NA
Changyo u.co m Limited CYOU NasdaqGS USD China 32.50 1,675.9 1,308
Chinese Gamer Internatio nal GTSM :3083 GTSM TWD Taiwan 352 945.9 NA
Co rnerWorld Co rpo ratio n CWRL OTCBB USD United States 0.02 1.9 16
Cyberplex Inc. TSX:CX TSX CA D Canada 1 46.4 NA
DA DA SpA CM :DA CM EUR Italy 4.77 103.4 NA
DigitalPo st Interactive, Inc. DGLP OTCBB USD United States 0 4.5 NA
DigitalTown, Inc. DGTW OTCBB USD United States 1.80 49.3 3
Do lphin Digital M edia, Inc. DP DM OTCBB USD United States 0 21.3 NA
En2Go International, Inc. ETGI OTCBB USD United States 0.20 4.8 NA
Fluid M usic Canada, Inc. TSX:FM N TSX CA D United States 2 102.3 NA
Fro gster Interactive P ictures A G FRG XTRA EUR Germany 20.48 70.7 NA
Gamania Digital Entertainment Co ., Ltd. 6180 GTSM TWD Taiwan 47 228.3 NA
GameOn Co Ltd. 3812 TSE JP Y Japan 102,000.00 106.9 NA
Geo Sentric Oyj GEO1V HLSE EUR Finland 0 48.4 NA
Giant Interactive Gro up, Inc. GA NYSE USD China 7.85 1,780.5 NA
GigaM edia Ltd. GIGM NasdaqGS USD Taiwan 3 162.5 751
Glu M o bile, Inc. GLUU NasdaqGM USD United States 1.01 30.9 NA
Gravity Co ., Ltd GRVY NasdaqGM USD So uth Ko rea 2 60.6 469
Gree, Inc. TSE:3632 TSE JP Y Japan 5,540.00 2,715.3 NA
GungHo Online Entertainment, Inc. 3765 OSE JP Y Japan 254,100 316.0 NA
HanbitSo ft, Inc. A047080 KOSE KRW So uth Ko rea 4,820.00 94.4 NA
HUGHES Telematics, Inc. HUTC OTCBB USD United States 3 230.0 276
IA C/InterActiveCo rp. IA CI NasdaqGS USD United States 23.64 2,755.4 3,200
IA S Energy, Inc. IA SC.A OTCPK USD Canada 0 12.0 NA
infoGROUP , Inc. IUSA NasdaqGS USD United States 8.00 463.2 3,146
Internet Gro up SA WSE:IGR WSE P LN P o land 1 13.2 NA
iseemedia Inc. IEE TSXV CA D Canada 0.12 8.2 NA

30 www.mackieresearch.com
 Public Company Listing cont. Trading Current US$ Market
Com pany Nam e Ticker Exchange Currency HQ Price Cap (m m ) Em ployees
Jumbuck Entertainment Limited ASX:JM B A SX A UD A ustralia 0.25 11.2 79
Kent Internatio nal Ho ldings Inc. KNTH OTCPK USD United States 1.81 6.4 NA
Kingso ft Co rpo ratio n Limited 3888 SEHK HKD China 6.12 874.2 NA
Kiwibox.Co m, Inc. KIWB OTCBB USD United States 0.01 4.9 NA
Lingo M edia Co rpo ratio n TSXV:LM TSXV CA D Canada 0.65 8.0 NA
Loo kSmart, Ltd. LOOK NasdaqGM USD United States 1.06 18.2 NA
M ixi, Inc. 2121 TSE JP Y Japan 609,000.00 1,020.3 NA
M o bile Data Co rp. M B YL OTCBB USD United States 0.08 2.0 NA
M o dern Times Gro up M tg A B M TG B OM SEK Sweden 425.00 3,895.2 NA
M o ggle, Inc DB :M 0C DB EUR United States 1.29 81.2 2
M OKO.mo bi Limited M KB A SX A UD A ustralia 0.10 10.8 NA
M ultiplied M edia Co rporatio n TSXV:M M C TSXV CA D Canada 0.19 42.5 NA
M yriad Gro up AG M YRN SWX CHF Switzerland 4.16 189.8 405
NEOWIZ Games Co rporatio n A095660 KOSE KRW So uth Ko rea 38,800.00 731.9 NA
NetDrago n WebSo ft, Inc. 777 SEHK HKD China 4.32 294.2 NA
Netease.co m Inc. NTES NasdaqGS USD China 35.16 4,554.0 NA
NeuLio n Inco rpo rated TSX:NLN TSX CA D Canada 0.65 74.5 NA
NeXplo re Corpo ratio n NXP C OTCPK USD United States 0.50 27.9 NA
Ngi Gro up Inc. 2497 TSE JP Y Japan 53,100.00 71.3 NA
No rthgate Techno lo gies Limited 590057 B SE INR India 18.45 14.4 160
OA O RB C Info rmatio n Systems RB CI M ICEX RUB Russia 44.21 204.6 2,523
Open Text Co rp. OTEX NasdaqGS USD Canada 47.14 2,661.7 3,700
Openwave Systems Inc. OP WV NasdaqGS USD United States 2.69 225.4 590
Oriented M edia Gro up B erhad OM EDIA KLSE M YR M alaysia 0.16 6.7 NA
P aid Inc. PA YD OTCBB USD United States 0.36 95.5 20
P erfect Wo rld Co ., Ltd. PWRD NasdaqGS USD China 34.78 1,732.9 NA
P NI Digital M edia Inc. TSXV:P N TSXV CA D Canada 1.72 56.9 NA
P o ints Internatio nal Ltd. TSX:P TS TSX CA D Canada 0.45 66.2 NA
Quepasa Co rp. QP SA OTCBB USD United States 4.15 53.8 71
Real Value Estates, Inc. RVLU OTCBB USD Israel 1.03 6.6 NA
RealNetwo rks Inc. RNWK NasdaqGS USD United States 4.40 594.6 1,754
Sahara M edia Ho ldings, Inc. SHHD OTCBB USD United States 0.25 7.8 15
Sco re M edia Inc. TSX:SCR TSX CA D Canada 0.80 63.8 220
Shanda Interactive Entertainment Ltd. SNDA NasdaqGS USD China 44.05 2,962.6 NA
Shutterfly, Inc. SFLY NasdaqGS USD United States 23.69 634.5 519
SK Communicatio ns Co ., Ltd. A066270 KOSE KRW So uth Ko rea 14,150.00 530.3 NA
SNA P Interactive, Inc. STVI OTCBB USD United States 0.24 7.9 NA

31 www.mackieresearch.com
 Public Company Listing cont.
Trading Current US$ Market
Com pany Nam e Ticker Exchange Currency HQ Price Cap (m m ) Em ployees
So cialwise, Inc. SCLW OTCB B USD United States 0.58 28.1 NA
So hu.co m Inc. SOHU NasdaqGS USD China 49.76 1,879.3 3,997
Spark Netwo rks, Inc. LOV A M EX USD United States 3.76 77.4 NA
SpectrumDNA , Inc. SP XA OTCB B USD United States 0.10 6.5 7
Taleo Co rp. TLEO NasdaqGM USD United States 26.87 1,065.6 916
Tencent Ho ldings Ltd. 700 SEHK HKD China 157.30 37,060.2 7,515
The New Yo rk Times Co mpany NYT NYSE USD United States 12.11 1,762.6 7,665
The9 Limited NCTY NasdaqGS USD China 6.84 174.5 1,626
TheStreet.co m, Inc. TSCM NasdaqGM USD United States 3.61 113.9 NA
Tree.Co m, Inc. TREE NasdaqGM USD United States 9.14 100.6 700
Unilava Co rpo ratio n UNLA OTCB B USD United States 0.44 44.0 39
Uniserve Co mmunicatio ns Co rp. TSXV:USS TSXV CA D Canada 0.08 1.9 NA
United Online, Inc. UNTD NasdaqGS USD United States 8.11 702.0 1,699
UOM O M edia, Inc UOM O OTCB B USD Canada 0.02 1.7 NA
ValueClick, Inc. VCLK NasdaqGS USD United States 10.09 820.5 1,086
Velti P lc VEL A IM GB P United Kingdo m 3.11 178.4 450
VOIS, Inc. VOIS OTCB B USD United States 0.01 9.0 2
WebM ediaB rands Inc WEB M NasdaqGS USD United States 1.00 37.4 NA
Webzen Inc. KOSE:A 069080 KOSE KRW So uth Ko rea 13,450 142.6 NA
Wizzard So ftware Co rpo ratio n WZE A M EX USD United States 0.24 15.9 NA
Wo rlds.co m Inc. WDDD OTCB B USD United States 0.10 5.4 1
XING A G O1B C XTRA EUR Germany 27.39 191.5 NA
YD Online Co rp. A 052770 KOSE KRW So uth Ko rea 6,240 83.8 NA
Ynk Ko rea Inc. A 023770 KOSE KRW So uth Ko rea 3,230 23.0 NA

32 www.mackieresearch.com
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1. None applicable.
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Each analyst of Mackie 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.

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33 www.mackieresearch.com