09-06-23 Web 2.0 Weekly

SOFTWARE & SERVICES 23 JUNE 2009
DAVID SHORE, CFA, MBA 416.860.6784

WEB 2.O WEEKLY david.shore@researchcapital.com
Arun Thomas (Associate) 416.860.7666
SOCIAL MEDIA AND MICRO BLOG METRICS SHOW GROWTH BY LEAPS AND BO UNDS
T WIT T E R G RO W S U S ER BA S E B Y 1,5 00 P E R CE NT IN M AY
Traditional media such as Radio and Print continue their declines, affected both by the global economy as well as
user preferences. TV, on the other hand, specifically specialty TV, continues to grow and is expected to do so at
modest rates. The growth and decline observed on the various traditional platforms are due to people using new
media (such as blogs, social networks, blogs, online video, online radio, etc.) to consume content. Further, revenue
from advertising is affected by the current economic environment, as well as advertisers transferring dollars from
traditional media to the new media. As a result, the traditional media revenue model is under tremendous pressure.
For a full discussion on this trend, please read our report, published June 10, titled “Don’t Change the Channel: TV
the Brightest Spot in the Canadian Market.” In our report, we profile a few companies, as well as offer a brief
summary of many other participants.
In the meantime, new media platforms such as Twitter and Facebook continue to post rapid growth on both their user
base and time spent by an average user. Twitter’s user base grew by 1,500% Y/Y in May to 18.2 million users,
according to Nielsen online. Further, users spent significantly more time on Twitter, from ~6 minutes in 2008 to ~17
minutes as of May 2009. Facebook topped the list among social networks with 144.3 million unique visitors globally in
May.
HI GHL IG HT S OF OU R W E B 2 .0 S E S SI O N T IT L E D “ V C F UN DI NG F O R W E B 2 . 0 C OM P AN I ES : NE C E S S A R Y?
PO S S IBL E? L E SS O N S L E AR N E D”
Our fifth W eb 2.0 session last Tuesday (June 16) was well attended, with over 40 participants from industry,
institutional investors, and VCs. W e believe that the session was successful in bringing the various participants
together and starting discussions on various topics that are at the heart of the community. The topics, being very
broad and deserving attention (at a much larger scope), could not be concluded in a single session, but opened a
platform for sharing what is near and dear to each representative of the community. Some of the discussion points
were:
1. At what stage should a W eb 2.0 start-up approach a venture capitalist for funding? W hat are some of the
factors that entrepreneurs should be mindful of when approaching venture capitalists?
2. How many investments and how much can VCs effectively manage in their portfolios? W hat should VCs do
differently when ~95% of them post only mediocre investment returns?
3. Technology being a commodity, how can W eb 2.0 companies address their target markets and create a
business model that generates revenues sooner?
4. Is the VC system broken? Should VCs manage fewer but bigger investments?
5. How should government in Canada support start-ups, as well as VCs? W hat should be done differently from
today, such that government be in the business of creating industries versus being in direct competition to
them?
On the capital raise front, Sugar Inc. leads: Total capital raised three weeks into June is $125.5 million on a total
of 24 transactions. It was led by Sugar Inc. raising $16.0 million, closely followed by Tumri ($15 million), Boku ($13
million), W imba ($12 million), and Grab Networks ($12 million). All other transactions were less than $10 million. The
average value for the month-to-date is $5.0 million, below the average value for May of $6.4 million (excluding the
$200 million investment in Facebook) on 16 financings. For additional details, see Figures 22 and 23 (at end of note).
A w eak price performance week: The companies in our universe had mostly weak stock price performances over
the past week (for stocks with prices greater than $1) (Figure 6), with 13 companies showing positive returns on the
week. Gree Inc. (3632:TSE) led the group with a 17% return, while Openwave Systems Inc. (OPW V:NASDAQ) had
the worst return, dropping 13% in the week.
This report has been created b y Anal ysts that are emplo yed b y Research Capital Corporation, a Canadian Investment Dealer.
For further disclosures, please see last page of this report.
w w w . r e s e a rc h c a p i t a l . c o m
T o ro n t o 4 1 6 . 8 6 0 . 7 6 0 0 Montreal 514.399.1500 Vancouver 604.662.1800 Calgary 403.265.7400 Regina 306.566.7550
Page 2
THE WEB 2.0 UNIVERSE

Ninety-One public Web 2.0 companies = $52.7 billion market cap: Our W eb 2.0 universe contains 91 companies, with a
combined market cap of approximately $52.7 billion (Figure 1). The average market cap for the group is ~$579 million (but
a median of only $49.6 million), with average trailing revenue of $151.7 million (median $54.0 million). The companies are
also generally profitable, with a median EBITDA margin of 13.2%. On a valuation basis, the overall average is 4.5x trailing
revenue (median 1.4x) and 9.6x trailing EBITDA (median 9.4x). Fourteen of the companies have more than 500
employees.
C omparable C ompany A nalys is > W eb 2.0
Trading Current U S D Market U S D LT M To tal US D L TM T otal E BITD A T E V/LT M TE V /L TM
C om pany Nam e L TM as o f T icker E xchange Currenc y HQ Price C ap ($m) R ev ($m) E B ITDA ($m) % R evenue E BITDA E mplo yees
Acce le riz e N ew Me dia, Inc. 3 /31 /200 9 AC LZ OT C B B USD U nited S ta tes 0 .40 1 1.1 4.1 (4 .4) NM 3.9x - 11
Actoz S of t C o., L td. 3 /31 /200 9 A0 527 90 K OS E KR W S o uth K orea 28 000 18 8.0 90. 6 1 9.7 21 .7% 1.8x 8. 1x NA
AQ Inte ractive , Inc. 3 /31 /200 9 38 38 TSE J PY J apan 75 200 4 2.6 64. 5 4 .1 6 .3% 0.2x 3. 3x NA
As s ocia ted Media H oldings Inc. 6 /30 /200 7 AS MH OT C P K USD U nited S ta tes 0 .02 0 .9 0.1 (2 .3) NM 1 9.2 x - 3
B igstring Co rp. 3 /31 /200 9 BS GC OT C B B USD U nited S ta tes 0 .03 1 .5 0.1 (2 .0) NM 3 9.0 x - 4
B e tawave Corpora tion 3 /31 /200 9 B W AV OT C B B USD U nited S ta tes 0 .08 2 .3 8.4 (1 2.6) NM - - 53
B e yond Commerce, Inc. 3 /31 /200 9 B Y OC OT C B B USD U nited S ta tes 0 .80 3 5.5 7.1 (9 .5) NM 5.7x - 69
B right T hings plc 9 /30 /200 8 AIM:B G T AIM G BP U nited K ingdom 0 .02 4 .8 0.3 (1 .8) NM 1 7.6 x - 9
B roa dW ebAs ia Inc. 9 /30 /200 8 BW BA OT C P K USD U nited S ta tes 0 .23 1 9.5 0.0 (4 .6) NM - - 46
C D C C orp. 3 /31 /200 9 C HIN .A N as da qG S USD H ong K ong 1 .39 14 7.5 389 .9 3 0.8 7 .9% 0.4x 5. 2x NA
C ha ngyou. com Limite d 3 /31 /200 9 C Y OU N as da qG S USD C hina 35 .20 1,9 36.1 222 .5 13 5.1 60 .7% 7.9x 12 .9x 6 28
C hina G ate wa y C orpo ra tion 9 /30 /200 8 CGWY OT C P K USD U nited S ta tes 0 .02 0 .4 6.7 (6 .6) -9 8.9% 0.1x - 37
C hine s e G amer In ternation al 3 /31 /200 9 G T S M:308 3 GT SM TWD T aiwan 339 .50 86 6.9 56. 1 3 1.4 56 .0% 1 4.3 x 25 .5x NA
C ornerW orld C orporation 1 /31 /200 9 C WR L OT C B B USD U nited S ta tes 0 .06 3 .9 1.3 NM NM 4.1x - NA
C yberplex Inc. 3 /31 /200 9 T S X:C X TSX C AD C ana da 1 .60 8 7.3 70. 6 7 .3 10 .3% 1.2x 11 .4x NA
DADA S pA 3 /31 /200 9 C M:D A CM E UR Ita ly 5 .85 13 1.5 233 .0 4 3.3 18 .6% 0.8x 4. 2x 5 78
DXN Holdings B hd 2 /28 /200 9 DXN KL S E MY R Ma la ys ia 0 .38 2 4.8 78. 1 1 0.7 13 .7% 0.5x 3. 8x NA
Dibz Inte rnation al, Inc. NA DIB Z OT C P K USD U nited S ta tes 0 .00 0 .0 NA NM NM - - NA
DigitalP o st Inte ra ctive , Inc. 3 /31 /200 9 DG LP OT C B B USD U nited S ta tes 0 .03 2 .2 0.7 (2 .6) NM 5.3x - 7
DigitalT own, In c. 2 /28 /200 9 DG T W OT C B B USD U nited S ta tes 2 .05 5 5.5 NM (3 .0) NM - - 3
Dolph in D igital Me dia, In c. 3 /31 /200 9 DP DM OT C B B USD U nited S ta tes 0 .50 2 5.8 0.8 (3 .7) NM 3 4.7 x - NA
E o lith C o. L td. 1 2/31 /200 8 A0 410 60 K OS E KR W S o uth K orea 820 .00 4 6.8 14. 5 (3 .4) -2 3.6% 3.4x - NA
E xte ns ions , Inc. 3 /31 /200 9 E XT I OT C P K USD U nited S ta tes 0 .20 8 .9 NM NM NM - - 2
F inan cia l Media G roup, Inc. 2 /28 /200 9 F NG P OT C B B USD U nited S ta tes 0 .00 0 .2 7.2 2 .4 34 .1% - - 22
F luid Mus ic Ca nada, Inc. 3 /31 /200 9 T S X:F MN TSX C AD U nited S ta tes 0 .63 2 8.7 5.0 (6 .9) NM 3.9x - NA
F ro gs te r Interactive P ictu re s AG 1 2/31 /200 8 FRG XT R A E UR G ermany 7 .95 2 5.9 3.2 (6 .1) NM 7.6x - NA
G a ma nia Digital E ntertainmen t C o., L td. 3 /31 /200 9 61 80 GT SM TWD T aiwan 54 .00 24 9.0 125 .8 2 0.9 16 .6% 1.8x 10 .8x NA
G a me On C o L td. 3 /31 /200 9 38 12 TSE J PY J apan 116 400 11 7.4 76. 7 1 8.2 23 .7% 0.7x 3. 1x NA
G e oS e ntric O yj 3 /31 /200 9 G E O1 V H LS E E UR F inland 0 .04 4 9.8 5.9 (1 5.2) NM 7.8x - 1 08
G iant Intera ctive G roup, Inc. 3 /31 /200 9 GA NY S E USD C hina 8 .02 1,8 09.3 218 .9 NM NM - - NA
G iga Media Ltd. 3 /31 /200 9 G IG M N as da qG S USD T aiwan 5 .49 29 9.3 183 .6 NM NM 1.2x - NA
G ravity C o., L td 9 /30 /200 8 GR VY N as da qG M USD S o uth K orea 1 .11 3 0.9 38. 4 7 .4 19 .2% - - 6 36
G ree, Inc. 6 /30 /200 8 T S E : 363 2 TSE J PY J apan 7 170 1,6 69.9 30. 6 1 1.0 36 .0% - - NA
G u ngH o O nline E n tertainment, In c. 3 /31 /200 9 37 65 OS E J PY J apan 234 000 27 9.5 107 .5 1 9.3 18 .0% 2.3x 13 .0x NA
H anbitS of t, Inc. 3 /31 /200 9 A0 470 80 K OS E KR W S o uth K orea 4 600 7 9.1 54. 2 (1 4.5) -2 6.8% 1.2x - NA
IAC /In terActiveC orp. 3 /31 /200 9 IAC I N as da qG S USD U nited S ta tes 16 .17 2,4 40.3 1 ,40 6.4 4 2.6 3 .0% 0.4x 13 .0x 3, 200
IAS E nergy, Inc. 1 /31 /200 9 IAS C.A OT C B B USD C ana da 0 .23 1 6.1 0.0 (0 .8) NM - - NA
is ee media Inc. 3 /31 /200 9 IE E T S XV C AD C ana da 0 .06 2 .7 1.5 (4 .8) NM 1.2x - NA
J umbu ck E ntertainment P ty Ltd. 1 2/31 /200 8 AS X:J MB AS X AU D Au s tra lia 0 .39 1 5.3 14. 2 5 .3 37 .2% 0.7x 2. 0x 72
J umpT V Inc. 3 /31 /200 9 T S X:J T V TSX C AD C ana da 0 .69 6 8.1 18. 1 (1 1.8) -6 5.2% 3.2x - 2 37
K A B D is tribu tion In c. 3 /31 /200 9 T S X:K AB TSX C AD C ana da 0 .63 7 6.4 71. 4 8 .5 11 .9% 1.1x 9. 6x NA
K in gs oft Co . Ltd. 3 /31 /200 9 38 88 S E HK HKD C hina 5 .20 72 7.9 129 .0 5 2.0 40 .3% 5.2x 12 .8x 2, 271
Lin go Media Co rporation 3 /31 /200 9 T S XV : LM T S XV C AD C ana da 1 .03 1 1.5 0.9 (1 .5) NM 1 1.7 x - NA
Live World Inc. 3 /31 /200 9 LV WD OT C P K USD U nited S ta tes 0 .10 3 .1 11. 4 (0 .0) -0 .4% 0.2x - NA
Lo okS mart, Ltd. 3 /31 /200 9 LOOK N as da qG M USD U nited S ta tes 1 .32 2 2.6 60. 7 (3 .8) -6 .3% - - 90
Magn itude Information S ys tems Inc. 3 /31 /200 9 MA G Y OT C B B USD U nited S ta tes 0 .01 5 .5 0.1 (3 .1) NM - - 14
Mixi, Inc. 3 /31 /200 9 21 21 TSE J PY J apan 523 000 83 8.5 125 .7 4 4.5 35 .4% 5.7x 16 .2x NA
Mode rn Times G roup Mtg AB 3 /31 /200 9 MT G B OM S EK S weden 192 1,5 77.6 1 ,68 2.9 25 7.8 15 .3% 1.3x 8. 2x 2, 969
Moggle , Inc 3 /31 /200 9 MMOG OT C B B USD U nited S ta tes 2 .30 8 3.5 NM NM NM - - 3
MOK O.mobi L imited 1 2/31 /200 8 MK B AS X AU D Au s tra lia 0 .08 5 .1 1.1 (2 .3) NM 3.5x - NA
Myriad G rou p AG 1 2/31 /200 8 MY R N SWX C HF S witz erla nd 5 .00 9 8.1 40. 0 0 .8 1 .9% 2.7x - 4 05
N E OW IZ G ames C orpo ra tion 1 2/31 /200 8 A0 956 60 K OS E KR W S o uth K orea 34 250 51 7.3 194 .3 5 2.2 26 .8% 2.6x 9. 7x NA
N etDrago n W ebS oft, Inc. 3 /31 /200 9 77 7 S E HK HKD C hina 5 .16 35 1.9 86. 9 3 4.4 39 .5% 2.4x 6. 2x 2, 426
N ete as e.com I nc. 3 /31 /200 9 NT E S N as da qG S USD C hina 33 .62 4,1 37.0 470 .4 30 5.7 65 .0% - - NA
N eXplore Co rpora tion 9 /30 /200 7 N XP C OT C P K USD U nited S ta tes 0 .61 3 4.0 NM (4 .9) NM - - 19
N gi G roup Inc. 3 /31 /200 9 24 97 TSE J PY J apan 36 850 4 7.5 92. 1 1 1.0 12 .0% 0.1x 0. 6x NA
N orthgate Te chno logies L imited 3 /31 /200 9 59 005 7 BS E INR India 37 .30 2 6.7 115 .2 (2 7.0) -2 3.5% 0.2x - NA
Open T e xt Corp. 3 /31 /200 9 OT E X N as da qG S USD C ana da 35 .29 1,8 57.1 782 .6 19 9.2 25 .5% 2.5x 9. 7x 3, 400
Openwave S ys tems Inc. 3 /31 /200 9 OP W V N as da qG S USD U nited S ta tes 2 .00 16 6.6 197 .2 (2 .1) -1 .0% 0.3x - 6 30
P e rfect W orld C o., Ltd. 3 /31 /200 9 PW R D N as da qG S USD C hina 28 .34 1,3 78.4 228 .1 12 4.6 54 .6% 0.2x 0. 4x NA
Qu epa s a C orp. 3 /31 /200 9 QP S A OT C P K USD U nited S ta tes 0 .60 7 .6 0.1 (1 0.8) NM - - 74
OA O R B C Information S ys tems 1 2/31 /200 7 R BCI R TS USD R us s ia 1 .00 13 8.7 151 .2 1 9.7 13 .1% 0.0x 0. 2x NA
S h anda Interactive E ntertainme nt L td. 3 /31 /200 9 S N DA N as da qG S USD C hina 51 .78 3,5 92.6 569 .9 26 0.8 45 .8% 0.1x 0. 1x NA
S h utte rf ly, In c. 3 /31 /200 9 S F LY N as da qG S USD U nited S ta tes 12 .97 32 6.5 215 .2 2 8.3 13 .2% 1.2x 9. 2x 5 14
S K C ommun ications Co ., Ltd. 1 2/31 /200 8 A0 662 70 K OS E KR W S o uth K orea 11 650 38 3.1 180 .6 1 1.7 6 .5% 2.1x 32 .6x NA
S N AP Inte ra ctive , Inc. 3 /31 /200 9 S T VI OT C B B USD U nited S ta tes 0 .65 7 .0 3.3 0 .9 28 .0% 1.7x 6. 0x 11
S N M G lobal H oldings 9 /30 /200 8 S N MN OT C P K USD U nited S ta tes 0 .01 0 .0 2.0 (0 .7) -3 4.8% 1.1x - 33
S o cia l Media V e nures , In c. 1 2/31 /200 8 S MVI OT C P K USD U nited S ta tes 0 .01 0 .0 0.1 (0 .1) -6 0.5% 0.0x - NA
S o cia lwis e, Inc. 3 /31 /200 9 S C LW OT C B B USD U nited S ta tes 0 .70 3 0.3 0.0 (4 .8) NM - - NA
S o hu. com Inc. 3 /31 /200 9 S OH U N as da qG S USD C hina 61 .20 2,3 41.6 460 .0 20 0.5 43 .6% 4.3x 9. 8x 3, 197
S park N etworks , Inc. 3 /31 /200 9 LOV AME X USD U nited S ta tes 2 .40 4 9.4 54. 3 1 1.8 21 .7% 0.9x 4. 2x 1 83
S pectrumDN A, Inc. 3 /31 /200 9 S P XA OT C B B USD U nited S ta tes 0 1 1.2 0.1 (2 .6) NM - - 7
T en cent Ho ldin gs L td. 3 /31 /200 9 70 0 S E HK HKD C hina 89 20,6 94. 5 1 ,20 3.2 57 6.6 47 .9% 1 8.7 x 39 .0x 6, 194
T he P arent C ompany 8/2/2008 K IDS .Q OT C P K USD U nited S ta tes 0 .03 0 .6 112 .0 (1 3.5) -1 2.0% 0.2x - 3 47
T he 9 L imited 1 2/31 /200 8 N CT Y N as da qG S USD C hina 10 .50 28 1.6 249 .8 8 4.2 33 .7% - - NA
T he S treet.com, Inc. 3 /31 /200 9 TSCM N as da qG M USD U nited S ta tes 2 .21 6 7.6 67. 0 1 .9 2 .9% 0.0x 1. 6x 3 10
T otal S po rt Online A S 3 /31 /200 6 T OS O OT C NO NOK N orwa y 0 .03 0 .1 2.0 (1 .0) -5 0.6% 4.6x - 16
T ree.C om, Inc. 3 /31 /200 9 TR EE N as da qG M USD U nited S ta tes 8 .97 9 6.8 215 .6 (1 3.3) -6 .2% 0.4x - 7 00
U nis erve C ommunications Co rp. 2 /28 /200 9 T S XV : US S T S XV C AD C ana da 0 .07 1 .5 22. 6 0 .1 0 .2% 0.2x - NA
U nited Online Inc. 3 /31 /200 9 U NT D N as da qG S USD U nited S ta tes 6 .15 51 4.0 811 .2 17 7.3 21 .9% 1.0x 4. 5x 1, 469
U OMO Media , Inc 1 /31 /200 9 U OMO OT C B B USD C ana da 0 .17 1 4.6 0.6 (0 .5) -7 8.2% 2 3.5 x - NA
V a lueC lick Inc. 3 /31 /200 9 V C LK N as da qG S USD U nited S ta tes 10 .52 91 4.9 591 .7 10 5.5 17 .8% 1.4x 7. 7x 1, 189
V O IS , In c. 3 /31 /200 9 V OIS OT C B B USD U nited S ta tes 0 .35 2 .9 0.0 (1 .1) NM - - 4
W ebze n Inc. 3 /31 /200 9 W ZE N N as da qG M USD S o uth K orea 3 .60 4 2.7 22. 6 (0 .4) -1 .9% - - 3 14
W iz za rd S of twa re Co rpora tion 3 /31 /200 9 W ZE AME X USD U nited S ta tes 0 .66 3 1.5 5.6 (5 .3) -9 4.5% 5.9x - 1 10
W orlds .com In c. 3 /31 /200 9 W DD D OT C B B USD U nited S ta tes 0 .10 5 .2 0.0 (0 .8) NM - - 1
W ynds to rm C orporation NA W YND OT C B B USD U nited S ta tes 0 .05 0 .8 NA NM NM - - NA
XIN G AG 3 /31 /200 9 O1B C XT R A E UR G ermany 30 .00 21 9.3 52. 5 1 6.4 31 .2% 3.2x 10 .2x 2 39
Y e dan gOnline Co rp. 1 2/31 /200 7 A0 527 70 K OS E KR W S o uth K orea 8 810 .00 10 8.5 53. 8 1 2.0 22 .4% 2.2x 9. 9x NA
Y n k K orea Inc. 1 2/31 /200 8 A0 237 70 K OS E KR W S o uth K orea 6 350 .00 2 6.6 11. 2 1 .2 10 .5% 2.3x 21 .9x NA
ZipLo cal Inc. 3 /31 /200 9 T S XV : ZIP T S XV C AD C ana da 0 .01 0 .3 2.6 (2 .0) -7 8.3% 0.6x - NA
H igh 20,6 94. 5 1 ,682 .9 57 6.6 65 .0% 3 9.0 x 39 .0x 6,1 94
Lo w 0 .0 0.0 -27.0 -9 8.9% 0.0x 0. 1x 1
A vera ge 579.2 151.7 33.2 6.8% 4 .5x 9.6 x 685
Median 4 9.6 54. 0 0 .9 13 .2% 1.4x 9. 4x 2 38
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 month-to-date capital raise totals $125.5 million: Total capital raised three weeks into June is $125.5 million on a
total of 24 transactions. It was led by Sugar Inc. raising $16.0 million, closely followed by Tumri ($15 million), Boku ($13
million), W imba ($12 million), and Grab Networks ($12 million). All other transactions were less than $10 million. The
average value for the month-to-date is $5.0 million, below the average value for May of $6.4 million (excluding the $200
million investment in Facebook) on 16 financings. The April average was $6.2 million on 23 financings.
Financing Activity Last Three Months
155.0 7.0
6.2 6.4
150.0
6.0
145.0
5.0 5.0
140.0
4.0
135.0
(US$m)
(US$m)
130.0
3.0
125.0
2.0
120.0
1.0
115.0
110.0 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 two
weeks of June. Five of the 16 deals in the month were greater than $10 million. For additional details, see Figures 22 and
23 (at end of note).
Page 4
Financing & M/A Summary - Last Three Months
250.0
200.0
150.0
Jun-09
(US$m)
May-09
Apr-09
100.0
50.0
0.0
AdEx Media
Mixercast
Collective Media
Marin Software
EveryZing
VoxPop
Cyberplex
Jaxtr
OpenX
OLX
Socialtext
TubeMogul
OneTXT
GOOM Radio
Viximo
IMShopping
RingRevenue
YuMe
Tribal Nova
Grab Networks
I Love Rewards
Medialets
Resonate Networks
Mo'Minis
Brandtology
Gather
LiquidPlanner
DoubleTwist
Inigral
Boku
Peer39
Cellufun
Batanga
DocuSign
SoundCloud
my6sense
Tripbase
Jodange
Picaboo
Foodista
Facebook
Zoosk
Azuki Systems
eRepublik
Loop'd Network
MashLogic
Sugar Inc.
The Rubicon Project
Conductor Inc.
ScanScout
beeTV
BlogHer Inc.
Gist
Fuhu Inc.
Cliqset
Socialcast
Scan & Target

Tumri
StumbleUpon
Taomee
TimeBridge
Animoto
GameGround
One Net Entertainment
Imeem
FreeWheel
WonderHill
AdWhirl
Wimba
Figure 3. Capital Market Activity, Last Three Months

Social Network remains the most active sector in dollars raised, while Ad Network remains the most active in
number of transactions: Following recent trends, Social Networks as a sector saw the most activity in dollars raised
($234.8 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 (14), raising $118.7 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)
234.8
100.0
118.7
50.0
45.8
35.8 30.2 28.4 23.0 19.5 18.3 17.0 13.0 11.0 10.4 8.7 6.8 4.7 4.4
0.0 2.0 2.0 1.3
Comment/Reputation
Social Commerce
Mobile Payment
Gaming
Travel
Media
Collaboration
Enterprise
Mobile
Widget
Blog
Search
Infrastructure
Social Networks
SAS
Video
Virtual World
Aggregation
Ad Network
Analytics
# companies
10 14 6 6 2 3 2 4 2 3 1 4 2 3 1 1 2 1 1 1
Figure 4. Capital Market Activity, by Sector, Last Three Months

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).
Web 2.0 Index Price Performance
98.18
88.18
78.18
68.18
58.18
48.18
Index: Web 2.0 X (Market Cap Weights) ^COMP - Share Pricing
Figure 5. Web 2.0 Price Performance

Source. Capital IQ
Page 6
A mixed price performance week: The companies in our universe had a weak stock price performances over the past
week (for stocks with prices greater than $1) (Figure 6), with 13 companies showing positive returns on the week. Gree
Inc. (3632:TSE) led the group with a 17% return, while Openwave Systems Inc. (OPW V:NASDAQ) had the worst return,
dropping 13% in the week.
1 Week P rice P erformance

G ree, Inc. 17.0%
Perfect World Co., Ltd. 16.4%
Mix i, Inc. 13.7%
Chines e Gamer International 8.8%
Eolith Co. Ltd. 7.9%
S park Netw orks , Inc. 6.7%
S K Communications Co., Ltd. 5.9%
NEOWIZ Games Corporation 3.9%
NetDragon WebS of t, Inc. 3.2%
A ctoz S of t Co., Ltd. 2.8%
Ngi G roup Inc. 2.1%
G ameOn Co Ltd. 1.8%
The9 Limited 0.4%
Tencent Holdings Ltd. -0.3%
Frogs ter Interactiv e Pictures A G -0.4%
K ings of t Co. Ltd. -0.6%
G igaMedia Ltd. -0.7%
IA C/InterA ctiveCorp. -0.7%
Y nk K orea Inc. -0.8%
Open Tex t Corp. -1.1%
A Q Interactiv e, Inc. -2.1%
DA DA S pA -2.5%
HanbitS of t, Inc. -2.5%
Giant Interactive G roup, Inc. -2.7%
Gamania Digital Entertainment Co., -2.9%
S hutterf ly , Inc. -3.7%
Neteas e.com Inc. -4.1%
S handa Interactive Entertainment Ltd. -4.8%
Y edangOnline Corp. -5.2%
United Online Inc. -6.0%
S ohu.com Inc. -7.2%
Changy ou.com Limited -8.8%
Lingo Media Corporation -8.8%
CDC Corp. -10.3%
Cy berplex Inc. -11.1%
XING A G -11.2%
Northgate Technologies Limited -11.3%
Modern Times G roup Mtg A B -11.3%
V alueClick Inc. -12.7%
Openw ave S y s tems Inc. -13.0%
-15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0%
Figure 6. 1-Week Price Performance

Source. Capital IQ
Page 7
INDUSTRY NEWS (PARTNERSHIPS, FINANCIAL RESULTS, NEW PRODUCTS)

K ey Developments
C ompany Headline Notes
S hutterfly, Inc . (Nas daqG S : S FL Y) S hutterfly Introduces P rivate V ideo S ha ring S ervice for its S hutterfly I nc . a nnounced the launc h of S hutterfly V ideo, whic h ma k es it eas y to sha re video priva tely a nd sa fely with friends , fa mily
Award W inning S h a re S ites members and groups on S hutterfly S ha re s ites . P owered by M otionbox , S hutterfl y V ideo enables u sers to upload and post video c lips from
their digita l c amera or ca mcorder to their own priv ate or public S hutterfly S ha re s ites . W ith S hutterfly V ideo, us ers c an upload a nd post up to
10 free video clips to their persona liz ed websites. Us ers ha ve the option to upgrade to a P remium video a ccount, whic h g ives them unlimited
video sharing a nd s torage a t a n introductory annual s ubs cription fee of $29.99. P remium video a cc ount us ers a lso will enjoy H D-qua lity
pla ybac k, hi gher file s ize limits a nd video downloa ds. All videos ca n be ea sily s ha red to soc ia l network ing sites lik e F a cebook , M yS pac e,
T witter a nd B logger.
Openwave S ys tems Inc . O penwa ve I ntroduces N ew G ua rdian S erv ice to H elp O penwa ve S y stems Inc. announced O penwa ve(R ) G uardia n, the lates t s erv ice ena bler for O penwav e(R ) Integra a next generation mobile
(Nas daqG S : OPW V) O perators P rovide a S ec ure Mobile Internet E xperienc e internet s ervice management pla tform. O penwa ve G ua rdian gives mobile opera tors the power to protec t their networks from v irus es and
sec urity threa ts, a nd to protect their subs cribers from ina ppropria te a nd unwanted content. B y implementing multiple defens es a ga inst
unwa nted content, mobile opera tors c an deliver the high quality mobile internet us er ex perience that their subs cribers expect while
confidently l a unching new a nd innova tiv e s ervices . G uardia n is part of O penwa ve's Mobile I nternet va lue-added s ervic es that are a va ila ble
for the Integra Mobile Internet S erv ice P la tform. Integra's plug-in framework means tha t a ll da ta tra ffic routed through I ntegra ca n benefit
from G uardi a n. The G uardian s erv ice a rchitecture a lso a llows add itiona l sec urity applications to be quick ly a dded as new mobile s ecurity
threa ts emerge. E qually, Integra 's intelligent workflow engine ensures that the mobile opera tor has full c ontrol over how a nd when the
fea tures within the G ua rdia n s ervic e are utilized.
G ravity Co., L td (N as daqG M: G R VY ) G ravity Co. L td. Announc es M anagement Changes ; G ravity Co. L td. a nnounc ed that at its extraordina ry general meeting of shareholders held on J une 12, 2009, the s ha reholders a pprov ed the
Approves Amendments to the Articles of Inc orporation a ppointment of one new director, M r. Jong G yu Hwa ng. At the boa rd meeting, M r. J ong G y u H wang, the new independen t director of the
company, wa s appointed as a new audit c ommittee member a nd Mr. K a z uki Moris hita , who had been a n a u dit committee member s inc e
S eptember 5, 2008, resig ned from the a udit committee. T he boa rd of directors als o appointed M r. Jong G y u H wa ng to the direc tor
nomination committee and the c ompens ation c ommittee to repla ce M r. K a z uki Moris hita.
T he sha reholders also approved the propos ed amendments to the Artic les of I ncorpo ration.
IAC /InterAc tiveC orp. (Nas daqG S : IAC I); T he New Y ork O bserv er, LL C and IAC /I nterActiveC orp. IAC /I nterA ctiveC orp. a nd T he New Y ork O bs erver, L LC a nnounced that IAC ha s contributed the as sets of V ery S hort Lis t (V S L) to a joint
T he New Yo rk Obs erver, LL C Announce J oint V enture venture with O bserv er M edia G rou p. O bserv er M edia G roup will ac quire majority control of the venture and IA C will ma intain a non-
controlling s take. Addi tiona l terms ha ve not been dis clos ed.
IAC /InterAc tiveC orp, Very S ho rt Lis t; T he New Y ork O bserv er, LL C ac quired 80% sta k e in V ery T he New Y ork O bs erv er, LL C acquired 80% sta ke in V ery S hort Lis t from IAC /I nterA ctiveC orp. (Na s daqG S : I ACI ) on J une 15, 2009. The
IAC /InterAc tiveC orp. (Nas daqG S : IAC I); S hort Lis t from IAC /I nterActiveC orp. (Na s daqG S : I ACI ). fina nc ia l terms of the dea l were not dis clos ed.
T he New Yo rk Obs erver, LL C
T he New Y ork O bs erv er, LL C completed the ac quis ition of 80% sta k e in V ery S hort Lis t from IAC /I nterActiveC orp. (Na s daqG S : I ACI ) on
J une 15, 2009.
T ree. Com, Inc . (Nas daqG M: TR E E ) T ree. Com, I nc. La unches N ew C us tomer R etention T ree. Com, I nc. ha s introduc ed a new offering to help bank s a nd mortga ge compa nies retain c us tomers who are seek ing refinancing options
P roduct with other lenders . L endingT ree's C us tomer R etention product uses proprietary filtering tec hnology to identify c us tomers by loan a mount,
loa n-to-va lue ra tio, loa n purpose and F I CO scores, and ena bles ba nk s and lenders to lev erage the mark eting ca pability a nd bra nd pres ence
of LendingTree. com to k eep v aluable cus tomers within their loan portfol ios. L endingT ree's Cus tomer R etention produc t offers a proven, eas y-
to-implement method for lenders to eas ily s ervice and retain c ustomers who are in-ma rket, ready to transa ct and activ ely looking for new
fina nc ing options .
Open T ext C orp. (Nas daqG S : OT E X) F ederal Computing C enter U ses O pen Tex t Corp. 's E C M O pen T ext C orp. announced tha t Aus tria's F edera l C omputing C enter is now offering E nterprise C ontent M a na gement (E CM ) as a s hared
S uite to P rov ide eG overnment S ervic es service by us ing the E C M S uite from O pen T ex t. O pen T ex t's s cal a bility a nd its brea dth of E C M s olutions and expertis e for S AP a pplica tions
contributed to the center's dec is ion to implement the O pen Tex t E C M S uite to help ma na ge more tha n 30 million documents annually . T he
O pen T ext E C M S uite is als o used to manage meta da ta, allowing meta da ta extra ction and management to be fully automa ted. I n all, the
center us es O pen T ex t to manage more than 5 tera bytes of information and s upports 15 applica tions that are tightly integra ted with S AP a nd
ma infra me a pplic ati ons. T o help lower c osts and red uce IT burdens on indiv idual agencies , the center has moved to a n a pplic ation s ervic e
provider (AS P ) or s hared s ervices model. T his means tha t E C M s ervices are invoic ed to the v arious organiz ations or c ustomers using the
a pplications ba s ed on their ac tua l usa ge patterns .
T enc en t Ho ldings Ltd. (S E H K: 700) T enc ent H as $877 M illion Wa r C hest F or Ac quis itions T enc ent Holdin gs Ltd pla ns to lis t in China a fter regula tors modify current rules . M a H uateng, T enc ent’s E x ecutive s ta ted that at end-M arch
the compa ny had a wa r c hest of about $877 million in ca s h, whic h i t could use for a cquisitions . He s a id: "T h e C ompany is retaining the ca sh
for mergers a nd a cquisitions . W e've been doing some sma ll sca le ac quis itions , wi th some inves ting directly and others in c oopera tion with
private equity. W e will s eek opportunities in China a nd Asia , with a focus on ha nds et a pplic ati ons a nd online ga me development a nd other
tec hnology projec ts ."
NE OW IZ G ames C orpo ratio n NE O W I Z G a mes Corporation, 2 : 1, S tock S plit or NE O W I Z G a mes Corporation, 2 : 1, S tock S plit or S ignifica nt S toc k D ividend, J un-16-2009
(K OS E : A095660) S ignifica nt S toc k Div idend, J un-16-2009
S ohu. c om Inc . (Nas daqG S : S OHU) S ohu.com I nc. Announces Introduction of a 3G Cha nnel S ohu.com I nc. announced the introduction of a 3G cha nnel, bas ed on S ohu's media platform, whic h will a ct as a dedicated broa dcas ter of
3G -rela ted information for us ers . B esid es, S ohu would provide s ome ba s ic information s ervices s uch as a 3G ma p and product tria l s through
its 3G c ha nnel. The new chan nel wi ll join hands with S ohu's sports and financia l c ha nnels .
G ravity Co., L td (N as daqG M: G R VY ) G ravity R ega ins C omplia nc e W ith N AS DA Q G ravity Co. , Ltd a nnounc ed that the C ompany rec eived a NAS D AQ S ta ff L etter, dated J une 12, 2009, noting that the C ompany ha s regained
complia nc e with NAS D AQ Listing R ule 5605(c)(2)(A) (the R ule) which requi res the Company to ha ve an a udit c ommittee of a t leas t three
independent directors . As previ ously announced on Ma y 21, 2009, the Company ha d receiv ed a N AS DAQ S ta ff D eficiency Letter, da ted M a y
15, 2009, indicating tha t the C ompany was not in complia nce with the a udit committee composi tion requirement for continued listing under
the R ule. O n J une 12, 2009, Mr. K a z uki Moris hita res igned from the C ompany's a udit committee a nd Mr. J ong G y u H wa ng was appointed to
the C ompa ny's B oa rd of D irectors and a udit committee. As a res ult of the appointment of Mr. H wa ng, the Compa ny ha s an audit committee
compris ed of three independe nt directors and receiv ed the N AS D AQ S taff L etter noting tha t the C ompa ny complies with the R ule and tha t
the matter is now clos ed.
Page 8
DigitalT own , Inc . (OT CB B :D G TW ) Digita lT own I nc . Names Arlo Hennings as Direc tor of Digita lT own I nc. named Arlo Hennings to the new position of Direc tor of B us iness D evelopment for D igita lTown's Americ a's P rodigy div ision,
B usi ness D evelopment, America 's P rodigy a premier talent dis cov ery s ite for high school s tudents . Hennings currently is Mana ger for A& M recording artis t S ha wn P hillips where he
propelled a five-year public relations and ma rk eting ca mpaign that revitalized the ca reer of the former interna tiona l mus ic bests eller. In
a ddition to S ha wn P hillips , as D irector of T alent Acquis ition and co-publis her N orth America fo r P oly G ra m Mus ic I nternational (Universa l
Mus ic) the Arlo Hennings P ub lishing Compa ny wa s born. Hennings s igned a nd dev eloped s ongwriters for major label rec ording compa nies.
His s uc ces s inc ludes ma j or la bel contra cts with W a rner B ros and I nters cope records.
Modern Times G ro up Mtg AB (OM: MTG Upda te to Modern T imes G roup MT G AB ’ s E quity O n J une 18, 2009, Modern Times G roup MT G A B a nnounc ed that it has iss ued a nd immediately repurc ha sed 370,000 new C l a ss C s hares .
B) B uybac k in the amount of 370, 000 new C lass C s ha res T he sha res have been is sued and repurchas ed in a ccordance with the terms of the performance-based incentive progra m, whic h wa s
on J une 18, 2009 a pproved by the MT G A nnual G enera l Meeting of shareholders held on May 11, 2009. N ordea B ank AB subs cribed for the entire is s ue of
new Cla s s C s hares at a s ubs cription price of S E K 5.00 per s ha re. T he entire is s ue of C las s C sha res has then been repurchas ed by M TG
for S E K 5.00 per s hare.
G igaMedia L td. (Nas daqG S : G IG M); G igaMedia L td. a nd M ythic E nterta inment I nc. to La unch G igaMedia L td. and M ythic E nterta inment Inc . a nnounced tha t the highly a cc la imed fa nta s y MM O R P G W arhammer(R ) O nline: Age of
Mythic E ntertain ment, Inc. W a rhammer O nline: Age of R ec k oning in Ta iwan R eckoning(R ) (W AR ) will la un ch in T aiwan on J une 25th. T he ga me will be a va ila ble on G igaM edia 's ga me pla tform, F unTown, in T a iwan,
Hong K ong, and Ma ca u, where pla yers will now be a ble to choos e a s ide in the growing battle between O rder a nd D es truction a nd help
decide the outcome of the W AR acros s the globe! L aunc hed in North A meric a, E urope a nd O ceania in S eptember of 2008 and i n R uss ia in
F ebruary of 2009, W arha mmer O nli ne: Age of R eckoning is a n epic fantas y MM O R P G based on the popula r ta bletop ga me from G a mes
W orks hop. F ea turing innovative R ealm vs . R ea lm(T M) gamepla y a nd P ublic Q ues ts(T M), play ers are i mmers ed in a world of perpetual
conflict between the armies of O rder and Des truc tion. Novice MM O play ers a nd v etera ns a like will apprec iate the incredible depth and variety
a va ila ble in W AR .
E xtens ions , In c. (OT CP K : E XTI) E xtensions S eeks Additiona l F inancing E xtensions , I nc. s ta ted that it requires a dditiona l fina ncing. T he company s ta ted: “S evera l c onditions and ev ents c ast doubt a bout the
company's a bility to continue as a "going concern". T he c ompany incurred indetermina te net loss es prior to O ctober 1, 2003, ha s a liquidity
problem, a nd requires additional financing in order to fina nc e its bus ines s activities on an ongoing ba s is. T he company is a ctively pursui ng
a lternative financing and ha s had dis cus s ions with v arious third pa rties, although no firm commitments ha ve been obta i ned. T he compa ny 's
future c apita l requirements will depend on numerous fa ctors including, but not limited to, continued progres s in finding a merger ca ndidate
a nd the purs uit of bus ines s opportunities .” The compa ny added: “W e may determine it is appropria te to ra is e a dditiona l capita l for work ing
capita l a nd general corpora te purpos es . If we need, or elec t, to obtain a dditiona l debt or equity fina nc ing, but there c an be no ass ura nce tha t
a dditional finan cing will be a va ila ble on rea s ona ble terms, if a t a ll. W ithout a dditiona l fina nc ing, we ha ve ins ufficient funds to carry out our
busines s pla n for the next twelve months. ”
T heS treet.c om, Inc . (Nas daqG M: T S CM) T heS treet.com I nc. Appoi nts R ich B roitma n as C hief T heS treet. com Inc. announced tha t it ha s a ppointed R ich B ro itman a s Chief Ac counting O ffic er. Mr. B roitma n had previous ly been the
Accounting O ffi cer Company's Acting C hief Accounting O ffi cer, a position he took in May 2009. M r. B roitma n joined the Compa ny as its C ontroller in J uly 2000
a nd was a ppointed V ic e P res ident of F ina nce in O ctober 2007. B efore joining the Compa ny, he wa s Controller of Indiv idua l I nves tor G roup,
a n online a nd print media c ompa ny . P rior to tha t, Mr. B roitma n was D irector of I nterna tiona l R oy alties for B ertels ma nn M usic G roup.
P erfec t World C o. , Ltd. P erfect W orld Co. L td. R evis ed R evenue G uida nc e for P erfect W orld Co. L td. revis ed revenue guida nce for the s econd quarter of 2009. F or the quarter, the compa ny now ra ises its revenue
(Nas daqG S : PW R D) the S ec ond Q uarter of 2009 guida nce to be between R MB 489 million and R MB 510 million, which repres ents a s equentia l increa s e of 15% to 20% . T his compares to the
previous ly announced s equentia l guidance of a 2% decline to a 2% increa se in revenue.
Figure 7. Key Developments

Source. Capital IQ
Page 9
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). Fifty-nine of the 91 companies have market caps under US$100 million, with 25 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)
Tenc ent Holdings L td.
Neteas e.c om Inc.
S ha nda Intera ctiv e Entertainment L td. 3592.6
IA C/InterA c tiveCorp. 2440. 3
S ohu.c om Inc. 2341. 6
Changyou. com L imited 1936.1
Open Tex t Corp. 1857.1
Giant Interac tive Group, Inc. 1809. 3
G ree, Inc. 1669.9
Modern Times Group Mtg A B 1577. 6
Perf ec t W orld Co. , L td. 1378.4
V a lueClick Inc. 914.
Chines e G amer Internationa l 866. 9 9
Mix i, Inc. 838. 5
K ings of t Co. L td. 727.9
NEOWIZ G ames Corpora tion 517.3
United Online Inc. 514.0
S K Communications Co. , L td. 383. 1
NetDragon WebS of t, Inc. 351.9
S hutterf ly, Inc. 326.5
G igaMedia L td. 299. 3
The9 Limited 281.6
GungHo Online Entertainment, Inc. 279.5
Gamania Digita l Enterta inment Co., 249.0
XING A G 219. 3
A ctoz S of t Co. , L td. 188. 0
Openw a ve S ys tems Inc. 166.6
CDC Corp. 147.5
OA O R B C Information S y s tems 138.7
DA DA S pA 131.5
Ga meOn Co L td. 117. 4
Y edangOnline Corp. 108. 5
My ria d G roup A G 98.1
Tree.Com, Inc. 96.8
Cy berplex Inc. 87.3
Moggle, Inc 83. 5
Ha nbitS of t, Inc. 79. 1
K A B Dis tribution Inc. 76.4
J umpTV Inc. 68.1
TheS treet.com, Inc. 67.6
Digita lTow n, Inc. 55.5
GeoS entric Oy j 49. 8
S pa rk Netw orks , Inc. 49. 4
Ngi Group Inc. 47. 5
Eolith Co. L td. 46. 8
Webz en Inc. 42.7
A Q Intera ctiv e, Inc. 42.6
B ey ond Commerc e, Inc. 35.5
NeXplore Corpora tion 34.0
Wiz z ard S oftw are Corpora tion 31.5
Grav ity Co., L td 30.9
S ocialw is e, Inc. 30.3
Fluid Mus ic Canada, Inc. 28.7
Northga te Tec hnologies L imited 26.7
Y nk K orea Inc. 26.6
Frogs ter Interac tive Pic tures A G 25.9
Dolphin Digita l Media, Inc. 25.8
DXN Holdings B hd 24.8
LookS ma rt, L td. 22.6
B roa dWebA s ia Inc. 19.5
IA S Energy, Inc. 16. 1
J umbuc k Enterta inment Pty L td. 15. 3
UOMO Media, Inc 14. 6
Lingo Media Corpora tion 11. 5
S pectrumDNA , Inc. 11. 2
A cc eleriz e New Media, Inc. 11. 1
Ex tens ions , Inc. 8.9
Quepa s a Corp. 7.6
S NA P Intera ctiv e, Inc. 7.0
Magnitude Inf orma tion S ys tems Inc. 5.5
Worlds .c om Inc. 5.2
MOK O.mobi Limited 5.1
B right Things plc 4.8
CornerWorld Corpora tion 3.9
LiveWorld Inc. 3.1
V OIS , Inc. 2.9
is eemedia Inc. 2.7
B eta w av e Corpora tion 2.3
Digita lPos t Intera ctiv e, Inc. 2.2
B igs tring Corp. 1.5
Unis erv e Communic ations Corp. 1.5
A s s ociated Media Holdings Inc. 0.9
Wynds torm Corpora tion 0.8
The Parent Compa ny 0.6
China Ga tew a y Corpora tion 0.4
ZipLoca l Inc. 0.3
Fina nc ial Media Group, Inc. 0.2
Tota l S port Online A S 0.1
S NM Globa l Holdings 0.0
Dibz Interna tional, 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
Page 10
TEV/Revenue (LTM) averages 4.5x: The overall average TEV/Revenue (LTM) multiple for our group is 4.5x (versus 5.3x
last week) (Figure 9). One company trades at more than 35x revenue – Bigstring Corp. (OTCBB:BSGC) at 39x – closely
followed by with Dolphin Digital (OTCBB:DPDM) at 34.7x. The median is only 2.0x. Note that we exclude multiples greater
than 50x. Thirty-five companies have multiples under 1.9x.
T E V/L T M R evenue (x)
45. 0
39.0
40. 0
34. 7
35. 0
30. 0
25. 0 23.5
20. 0 18.19.2
7
17.6
14.3
15. 0
11. 7
10. 0 7.67.87.9
5.75.75.9
A verage, 4.5
3.93.94.14.34.65.25.3
5. 0 3.23.23.43.5
2.12. 22.32.32. 42.52.62. 7
0.91.01.11. 11.21.21. 21.21.21. 31.41.71. 81.8
0.10.10.10.20.20.20.20.20.20.30.40.40.40.50.60.70.70.8
0. 0
NE O WIZ G a mes C orporation

G amania Digital E ntertainment
J umbuck E ntertainment P ty Ltd.
MO K O .mobi Limited
U O MO Media , Inc
C hines e G a mer International
Unis erv e C ommunic ations C orp.
G ungHo O nline E ntertainment,

Northgate T echnologies Limited
DX N H oldings B hd
C hangy ou.com Limited

T ree.C om, Inc.
C DC C orp.
G ameO n C o Ltd.
S K C ommunications C o., Ltd.
F luid Mus ic C anada, Inc.
Digita lP os t Interac tive, Inc.

B ey ond C ommerce, Inc.
Dolphin Digita l Media, Inc.

T he P arent C ompany
Modern T imes G roup Mtg AB
G eoS entric O y j
S NM G lobal Holdings
C ornerWorld C orpora tion
Lingo Media C orpora tion

Ngi G roup Inc.
U nited O nline Inc.
S NAP Interac tive, Inc.
O pen T ex t C orp.
J umpT V Inc.
C hina G ateway C orpora tion
AQ Interactive, Inc.
IAC /InterActiveC orp.
S park Network s , Inc.
is eemedia Inc.
C y berplex Inc.
G igaMedia Ltd.
V a lueC lick Inc.
NetDragon WebS oft, Inc.
X ING AG
E olith C o. Ltd.
S ohu.c om Inc.
Mix i, Inc.
F rogs ter Interac tive P ictures AG
T enc ent H oldings Ltd.

As s oc iated Media H oldings Inc.
S handa Interac tive
B right T hings plc

Liv eWorld Inc.
P erfec t World C o., Ltd.
O penwa ve S y s tems Inc.
Z ipLocal Inc.
K AB Dis tribution Inc.

HanbitS oft, Inc.
Y edangO nline C orp.

Y nk K orea Inc.
My ria d G roup AG
B igs tring C orp.

T otal S port O nline AS
S hutterfly , Inc.
Ac celeriz e New Media, Inc.
K ings oft C o. L td.

DADA S pA
Wiz z a rd S oftware C orporation

Actoz S oft C o., L td.
Figure 9. TEV/Revenue Ranking

Source. Capital IQ
TEV/Revenue (LTM) by country/exchange: W e have also calculated multiples based on where the companies are listed
or domiciled. Figure 10 shows the average TEV/Revenue multiples by stock exchange. The OTCBB has the largest
number of companies (19), trading at an average multiple of 14.7x (versus. 14.6x last week). On a geographic basis, the
United States has the most companies (39), trading at an average of 5.7x revenue (versus 6.1x last week) (Figure 11).
Ten of the companies are Canadian (average 5.0x revenue).
Average TEV/LTM Revenue - By Exchange Average TEV/LTM Revenue - By Country

20.0 17.6 20.0
17.6
18.0 18.0
16.0
16.0 14.7 14.0
14.0
12.0
12.0
(x)
8.8 10.0 7.8

(x)
10.0
8.0 8.0 5.8
5.7 5.5
8.0 7.8 5.4 5.0 4.6
5.4 6.0
6.0 4.6 3.5 3.43.4 4.0 2.7
4.0 2.7 2.3 2.3 2.2 2.1 1.7 1.3 2.2 2.1 1.8 1.3
1.7 2.0 0.8 0.5
2.0 0.8 0.5 0.4 0.2 0.0
0.0
0.0 0.2 0.2 0.0
Germany
United
Finland
United
China
Canada
Japan
Malaysia
Hong Kong
India
Russia
Italy
South
Taiwan
Australia
Norway
Switzerland
Sweden
OTCNO
OTCPK
OTCBB
GTSM
NasdaqGM
SEHK
HLSE
OSE
KOSE
NasdaqGS
TSE
RTS
OM
CM
XTRA
AMEX
TSX
KLSE
BSE
AIM
TSXV
SWX
ASX
# Companies 1 1 3 39 10 2 10 1 1 9 2 6 1 1 1 1 1 1
# Companies 1 19 3 2 1 2 1 11 4 2 1 4 1 7 2 14 5 1 1 1 1 5 1
Figures 10 & 11. TEV/Revenue Ranking (Exchange, Country)

Source. Capital IQ
Page 11
TEV/EBITDA (LTM) averages 9.6x: The average multiple for the 36 companies with positive EBITDA (and multiples under
100x) is 9.6x LTM EBITDA (vs. 10.2 last week), led by Tencent Holding’s (700-SEHK) 39.0x multiple (Figure 12). Fifteen
of the companies have EBITDA multiples under 7x. The median multiple is 8.7x (vs. 9.6x last week).
T E V/L T M E B IT DA (x)
45. 0
39. 0
40. 0
35. 0 32.6
30. 0
25. 5
25. 0 21. 9
20. 0
16.2
15. 0 12. 8 12. 9 13. 0 13. 0
10. 8 11. 4
A verage, 9. 6 9. 2 9. 6 9. 7 9. 7 9. 8 9. 9 10.2
10. 0 7. 7 8.1 8. 2
6. 2
5. 2 6.0
4. 2 4. 2 4. 5
5. 0 3. 1 3. 3 3. 8
1. 6 2. 0
0. 1 0. 2 0. 4 0.6
0. 0
NE O W IZ G ames C orporation
J umbuc k E ntertainment P ty Ltd.
G amania Digital E ntertainment C o. , Ltd.
G ungHo O nline E ntertainment, Inc .
C hines e G amer International

O AO R B C Information S y s tems
G ameO n C o L td.
C DC C orp.
S K C ommunic ations C o. , L td.

DXN Holdings B hd
C hangy ou. c om L imited

S handa Interac tive E ntertainment Ltd.
Ngi G roup Inc .
T heS treet. c om, Inc .
U nited O nline Inc .
S NAP Interac tive, Inc .
O pen T ex t C orp.
AQ Interac tive, Inc.
NetDragon W ebS oft, Inc.
V alueC lic k Inc.
S ohu.c om Inc.
C yberplex Inc.
Mix i, Inc.
T enc ent Holdings L td.

XING AG
P erfec t W orld C o. , L td.
K AB Dis tribution Inc .
Y nk K orea Inc .
S hutterfly, Inc .
K ings oft C o. L td.

DADA S pA
Ac toz S oft C o. , L td.
Figure 12. TEV/EBITDA Ranking

Source. Capital IQ
TEV/EBITDA (LTM) by country/exchange: Figure 13 shows the average TEV/EBITDA multiples by stock exchange. The
OTCBB has the largest number of companies (19), trading at an average multiple of 6.0x (vs. 6.6x last week). On a
geographic basis, the United States has the most companies (19), trading at an average of 6.6x EBITDA (Figure 14). Ten
of the companies are Canadian (average 10.2x EBITDA).
Average TEV/LTM EBITDA - By Exchange Average TEV/LTM EBITDA - By Country

25.0 20.0
19.4 18.0 18.2
20.0 16.0
16.4
14.0
15.0 18.2
16.4 12.0
11.6
(x)
(x)
13.0 10.0 10.2 10.2

10.0 10.510.2 8.0 8.2 7.2
8.2 7.3 6.6 5.2
6.0 5.8 6.0
5.0 4.2 4.2 3.8 4.0 4.2 3.8
2.0 1.6
0.2 0.0 2.0
2.0 0.2
0.0 0.0 0.0
OTCBB
GTSM
NasdaqGM
SEHK
KOSE
OSE
NasdaqGS
TSE
RTS
OM
CM
TSX
XTRA
AMEX
KLSE
SWX
Germany
China
Canada
Japan
United
Hong Kong
Malaysia
Russia
ASX
Italy
South
Korea
States
Taiwan
Australia
Sweden
Switzerland
# Companies 3 2 7 1 4 2 1 14 19 5 2 1 1 2 5 1 1 # Companies 3 9 10 2 10 1 6 39 1 1 1 2 1 1
Figures 13 & 14. TEV/EBITDA Ranking (Exchange, Country)

Source. Capital IQ
P/E (LTM) averages 17.0x: The average multiple for the 29 companies with positive earnings (and multiples under 100x)
is 17.0x LTM EPS (vs. 16.7x last week), led Tencent Holding’s (700-SEHK) 49.7x multiple (Figure 15). Nine of the
companies have P/E multiples under 10x. The median is just 13.2x.
Page 12
P /E L T M (x)
60.0
49.7
50.0
41.8
40.0
33.6 34.1
31.5
28.8 29.0
30.0 26.6
22.5
20.8 21.0
20.0 A verage, 17.0
15.1 16.4
12.6 13.2 13.2 13.7
10.8 11.8 11.8
8.9
10.0 6.2
4.1 4.9
1.9 2.3 2.5 2.8
0.8
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.
T he9 Limited
Neteas e.com Inc.
S handa Interactive E ntertainment Ltd.
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.
Worlds .com Inc.
Mix i, Inc.
T encent H oldings Ltd.

XING AG
P erfect World C o., Ltd.
K ings oft C o. Ltd.
DADA S pA
Actoz S oft C o., Ltd.

Figure 15. P/E Ranking
Source. Capital IQ
P/E (LTM) by country/exchange: Figure 16 shows the average P/E multiples by stock exchange. The OTCBB has the
largest number of companies (19), trading at an average multiple of 22.4x. On a geographic basis, the United States has
the most companies (39), trading at an average of 20.2x earnings (Figure 17). Ten of the companies are Canadian
(average 19.0x EPS).
Average P/E - By Exchange Average P/E - By Country

35.0 30.0 27.7
30.1
30.0 25.0
25.0 27.7 26.2 24.0 24.0 22.5
24.0 20.0
20.0 22.5 22.4 21.0
20.2
21.0
(x)
(x)
15.0 19.0
15.0
15.1 11.5
10.7 8.9 10.0
10.0
6.2 4.9 6.2
4.1 4.9
5.0 5.0 4.1
1.9
0.0 0.0 0.0 0.0
OTCBB
GTSM
TSE
SEHK
KOSE
NasdaqGS
CM
OM
XTRA
AMEX
TSX
KLSE
NYSE
SWX
ASX
Germany
Japan
United
Canada
China
Malaysia
Italy
South
Korea
States
Taiwan
Australia
Switzerland
Sweden
# Companies 2 5 3 7 1 19 2 2 14 4 2 1 1 1 1 6 9 3 1 2 39 10 10 2 1 1 1
# Companies
Figures 16 & 17. P/E Ranking (Exchange, Country)

Source. Capital IQ
Page 13

P ric e P erformanc e
C ompa ny Na me C ur rency T ic ker E x change USD Market 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. USD A CL Z OT C B B 1 1.1 0.4 0 14.3 % 0.0% 73 .9% 14 .3% -46 .7% -46. 7%
Actoz S of t C o., L td. KR W A 052 790 KO SE 18 8.0 2 8,00 0.0 0 2.8 % 2 8.7 % 14 6.7% 15 6.9% 2 59. 9% -22. 2%
AQ Inte ractive , Inc. JPY 3 838 TSE 4 2.6 7 5,20 0.0 0 -2.1 % 2 1.3 % 12 5.8% 16 4.8% -45 .1% -57. 0%
As s ocia ted Media H oldings Inc. USD 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. USD B S GC OT C B B 1 .5 0.0 3 0.0 % 2 6.1 % 81 .3% 52 .6% -79 .3% -85. 5%
B e tawave Corpora tion USD B W AV OT C B B 2 .3 0.0 8 -20. 0% -11. 1% -4 6.7% -6 3.6 % -78 .4% -81. 0%
B e yond Commerce, Inc. USD B Y OC OT C B B 3 5.5 0.8 0 -12. 1% -30. 4% 56 .9% 0 .0% -75 .4% -75. 8%
B right T hings plc G BP A IM:B G T AI M 4 .8 0.0 2 0.0 % 0.0% -1 4.3% 30 .4% -31 .8% -40. 0%
B roa dW ebAs ia Inc. USD B W BA OT C P K 1 9.5 0.2 3 -22. 8% -22. 8% -5 4.9% -7 7.2 % -84 .7% -92. 1%
C D C C orp. USD C H IN .A N as da qG S 14 7.5 1.3 9 -10. 3% -2.8 % 23 .0% 33 .7% -44 .4% -56. 2%
C ha ngyou. com Limite d USD C Y OU N as da qG S 1,9 36. 1 3 5.2 0 -8.8 % 2 1.3 % NM NM NM -21. 5%
C hina G ate wa y C orpora tion USD C GW Y OT C P K 0 .4 0.0 2 1 00. 0% 9 00.0 % 190 0.0 % 90 0.0% 33.3 % -42. 9%
C hine s e G amer International TW D G TS M:3 083 GT S M 86 6.9 33 9.5 0 8.8 % -4.0 % 78 .7% 27 3.1% 2 78. 9% -13. 6%
C ornerW orld C orporation USD CWR L OT C B B 3 .9 0.0 6 -14. 3% -33. 3% -5 7.1% -8 7.2 % -85 .4% -92. 4%
C yberplex Inc. C AD T S X:CX TSX 8 7.3 1.6 0 -11. 1% -4.2 % 11 0.5% 37 0.6% 1 46. 2% -19. 6%
D AD A S pA EUR C M:DA CM 13 1.5 5.8 5 -2.5 % -1.2 % 14 .5% -1 6.4 % -55 .0% -57. 3%
D XN Holdings B hd MY R D XN KL SE 2 4.8 0.3 8 -5.0 % -7.3 % 40 .7% 0 .0% -2. 6% -19. 1%
D ibz Inte rnational, Inc. USD D IB 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. USD DGL P OT C B B 2 .2 0.0 3 36.4 % 6 2.2 % 10 0.0% 50 .0% -72 .7% -82. 4%
D igitalT own, Inc. USD DGT W OT C B B 5 5.5 2.0 5 -18. 0% 3 6.7 % -1 8.0% -3 6.9 % -31 .7% -66. 4%
D olphin D igital Me dia, Inc. USD DPDM OT C B B 2 5.8 0.5 0 -5.7 % -26. 5% -1 6.7% -3 7.5 % NM -55. 8%
E olith C o. L td. KR W A 041 060 KO SE 4 6.8 82 0.0 0 7.9 % -11. 4% 51 .9% 45 .1% -3. 5% -29. 3%
E xte ns ions , Inc. USD E XT I OT C P K 8 .9 0.2 0 33.3 % 3 3.3 % 33 .3% 90 .5% 33.3 % -80. 2%
F inancia l Media G roup, Inc. USD F NGP OT C B B 0 .2 0.0 0 7.7 % -6.7 % -7 8.5% -9 6.0 % -99 .7% -99. 7%
F luid M us ic Ca nada, Inc. C AD T S X:F MN TSX 2 8.7 0.6 3 -11. 3% -33. 7% 80 .0% 15 7.1% -64 .4% -68. 5%
F rogs te r Interactive P icture s AG EUR FR G XT R A 2 5.9 7.9 5 -0.4 % -3.5 % 24 .2% 43 .8% 53.8 % -19. 7%
G a ma nia D igital E ntertainment C o., L td. TW D 6 180 GT S M 24 9.0 5 4.0 0 -2.9 % 9.3% 63 .6% 17 0.7% 83.7 % -13. 9%
G a me On C o L td. JPY 3 812 TSE 11 7.4 11 6,40 0.0 0 1.8 % 2 7.9 % 33 .0% -4.8% -1. 4% -28. 8%
G e oS e ntric O yj EUR G E O1V H LS E 4 9.8 0.0 4 0.0 % -20. 0% 33 .3% 0 .0% -33 .3% -42. 9%
G iant Intera ctive G roup, Inc. USD GA NYS E 1,8 09. 3 8.0 2 -2.7 % -2.9 % 14 .6% 34 .8% -32 .8% -40. 3%
G iga Media Ltd. USD G IG M N as da qG S 29 9.3 5.4 9 -0.7 % -7.7 % -6 .0% -4.4% -56 .6% -63. 1%
G ravity C o., L td USD G RV Y N as da qG M 3 0.9 1.1 1 -7.5 % 0.9% 73 .4% 85 .0% -17 .2% -44. 2%
G ree, Inc. JPY T S E :36 32 TSE 1,6 69. 9 7,17 0.0 0 17.0 % 3 3.5 % 56 .6% 31 .8% NM 7.0 %
G ungH o O nline E ntertainment, Inc. JPY 3 765 OS E 27 9.5 23 4,00 0.0 0 4.0 % 4 5.3 % 10 4.4% 11 3.7% -0. 4% -16. 4%
H anbitS of t, Inc. KR W A 047 080 KO SE 7 9.1 4,60 0.0 0 -2.5 % -23. 3% 34 .9% 40 .0% 29.6 % -30. 7%
IAC /InterActiveC orp. USD I ACI N as da qG S 2,4 40. 3 1 6.1 7 -0.7 % 4.5% 9 .9% 2 .5% -57 .3% -68. 0%
IAS E nergy, Inc. USD I AS C .A OT C B B 1 6.1 0.2 3 0.0 % -11. 5% 41 1.1% 66 6.7% 28.5 % -34. 3%
is ee media Inc. C AD IEE T S XV 2 .7 0.0 6 -20. 0% -33. 3% -3 3.3% -7.7% -82 .9% -82. 9%
J umbuck E ntertainment P ty Ltd. AU D A S X:J MB AS X 1 5.3 0.3 9 -2.5 % -4.9 % -2 2.0% 0 .0% -31 .6% -37. 1%
J umpT V Inc. C AD T S X:J T V TSX 6 8.1 0.6 9 -5.5 % -13. 8% 72 .5% 72 .5% 19.0 % -46. 1%
K A B D is tribution Inc. C AD T S X:K AB TSX 7 6.4 0.6 3 1.6 % 5.0% 57 .5% 14 2.3% -29 .2% -33. 7%
K ings oft Co. Ltd. HKD 3 888 S E HK 72 7.9 5.2 0 -0.6 % -6.0 % 69 .9% 11 6.7% 30.0 % -12. 9%
Lingo Media Corporation C AD T S XV :LM T S XV 1 1.5 1.0 3 -8.8 % -1.9 % 21 .2% 3 .0% -44 .3% -46. 4%
Live World Inc. USD L VW D OT C P K 3 .1 0.1 0 -33. 3% 4 2.9 % -5 0.0% 18 5.7% -50 .0% -68. 8%
LookS mart, Ltd. USD L OOK N as da qG M 2 2.6 1.3 2 5.6 % -5.7 % 33 .3% -1 7.5 % -66 .8% -68. 6%
Magnitude Information S ys tems Inc. USD MAG Y OT C B B 5 .5 0.0 1 20.0 % 2 0.0 % -7 .7% -2 0.0 % -45 .5% -60. 0%
Mixi, Inc. JPY 2 121 TSE 83 8.5 52 3,00 0.0 0 13.7 % 1 4.7 % 58 .5% -6.9% -23 .5% -43. 2%
Mode rn Times G roup Mtg AB SE K MT G B OM 1,5 77. 6 19 1.5 0 -11. 3% -15. 1% 35 .6% 18 .2% -46 .9% -51. 0%
Moggle , Inc USD MMOG OT C B B 8 3.5 2.3 0 15.0 % 1 5.0 % 53 .3% NM NM 0.0 %
MOK O.mobi L imited AU D MK B AS X 5 .1 0.0 8 15.4 % 7.1% 50 .0% 25 .0% 50.0 % -25. 0%
Myriad G roup AG C HF MY R N SWX 9 8.1 5.0 0 0.2 % -15. 8% 25 .0% -2 1.5 % -51 .2% -51. 2%
N E OW IZ G ames C orpora tion KR W A 095 660 KO SE 51 7.3 3 4,25 0.0 0 3.9 % -11. 0% 62 .3% 24 2.5% 1 42. 5% -18. 5%
N etD ragon W ebS oft, Inc. HKD 7 77 S E HK 35 1.9 5.1 6 3.2 % -6.0 % 21 .4% 80 .4% -50 .8% -51. 3%
N ete as e.com I nc. USD NT E S N as da qG S 4,1 37. 0 3 3.6 2 -4.1 % 2.7% 35 .8% 61 .9% 62.5 % -13. 2%
N eXplore Corpora tion USD N XP C OT C P K 3 4.0 0.6 1 -12. 9% -12. 9% 1 .7% -3 9.0 % -28 .2% -57. 9%
N gi G roup Inc. JPY 2 497 TSE 4 7.5 3 6,85 0.0 0 2.1 % 2 2.8 % 76 .3% -2 8.2 % -63 .2% -71. 1%
N orthgate Te chnologies L imited IN R 5 900 57 BS E 2 6.7 3 7.3 0 -11. 3% 5.8% 18 .4% -4 1.9 % -89 .9% -90. 3%
Open T e xt Corp. USD O TE X N as da qG S 1,8 57. 1 3 5.2 9 -1.1 % 1 2.0 % 2 .5% 16 .4% 11.1 % -9.7 %
Openwave S ys tems Inc. USD O PW V N as da qG S 16 6.6 2.0 0 -13. 0% 1 1.7 % 13 8.1% 26 3.6% 41.8 % -17. 7%
P e rf ect W orld C o., Ltd. USD P W RD N as da qG S 1,3 78. 4 2 8.3 4 16.4 % 4 6.5 % 11 6.3% 78 .4% 12.3 % -5.5 %
Quepa s a C orp. USD Q PSA OT C P K 7 .6 0.6 0 -3.2 % -37. 5% -4 4.4% -5 8.9 % -73 .7% -82. 7%
OA O RB C Information S ys tems USD R BC I R TS 13 8.7 1.0 0 -25. 9% -20. 0% 33 4.8% 66 .7% -88 .9% -89. 0%
S handa Interactive E ntertainme nt L td. USD S ND A N as da qG S 3,5 92. 6 5 1.7 8 -4.8 % -5.7 % 38 .4% 71 .4% 92.6 % -20. 3%
S hutte rf ly, Inc. USD S F LY N as da qG S 32 6.5 1 2.9 7 -3.7 % -9.2 % 57 .6% 93 .3% 4.1 % -15. 0%
S K C ommunications Co., Ltd. KR W A 066 270 KO SE 38 3.1 1 1,65 0.0 0 5.9 % 9.9% 48 .8% 12 5.8% -30 .4% -37. 4%
S N AP Inte ra ctive , Inc. USD S T VI OT C B B 7 .0 0.6 5 -7.1 % -18. 8% -3 0.9% -7.1% -5. 8% -39. 8%
S N M G lobal Holdings USD S NMN OT C P K 0 .0 0.0 1 3 66. 7% 1 80.0 % 60 0.0% -3 0.0 % -99 .5% -99. 6%
S ocia l Media V e nures , Inc. USD S MV I OT C P K 0 .0 0.0 1 0.0 % 0.0% -9 9.2% -9 9.1 % NM -99. 8%
S ocia lwis e, Inc. USD S CL W OT C B B 3 0.3 0.7 0 0.0 % -5.4 % 75 .0% -1 7.6 % -64 .8% -75. 3%
S ohu. com Inc. USD S OH U N as da qG S 2,3 41. 6 6 1.2 0 -7.2 % 1 2.8 % 49 .2% 43 .5% -14 .5% -30. 5%
S park N etworks , Inc. USD L OV AME X 4 9.4 2.4 0 6.7 % 6.7% 6 .7% -8.7% -42 .9% -46. 2%
S pectrumDN A, Inc. USD S P XA OT C B B 1 1.2 0.2 3 -8.0 % -32. 4% 21 .1% 9 .5% NM -61. 7%
T encent Holdings L td. HKD 7 00 S E HK 20, 694 .5 8 8.9 0 -0.3 % 1 4.1 % 51 .8% 78 .3% 48.2 % -3.9 %
T he P arent C ompany USD K IDS .Q OT C P K 0 .6 0.0 3 -24. 2% 1 00.0 % 66 .7% -8 8.6 % -98 .6% -99. 1%
T he 9 L imited USD NC T Y N as da qG S 28 1.6 1 0.5 0 0.4 % 1 7.1 % -1 7.8% -1 8.1 % -53 .3% -63. 2%
T he S treet.com, Inc. USD T S CM N as da qG M 6 7.6 2.2 1 4.7 % 1 3.3 % 12 .2% -3 3.0 % -67 .5% -69. 9%
T otal S port Online A S N OK T OS O OT C N O 0 .1 0.0 3 0.0 % 0.0% -2 5.0% -4 0.0 % -70 .0% -70. 0%
T ree.C om, Inc. USD TR EE N as da qG M 9 6.8 8.9 7 -10. 1% -29. 9% 93 .3% 26 3.2% NM -31. 4%
U nis erve C ommunications Corp. C AD T S XV :U S S T S XV 1 .5 0.0 7 40.0 % 4 0.0 % 40 .0% 75 .0% -74 .1% -76. 7%
U nited Online Inc. USD UNT D N as da qG S 51 4.0 6.1 5 -6.0 % -6.2 % 46 .4% 10 .6% -38 .6% -49. 8%
U OMO Media , Inc USD U OMO OT C B B 1 4.6 0.1 7 3.0 % -48. 5% 30 .8% 54 .5% -48 .5% -84. 0%
V a lueC lick Inc. USD V CL K N as da qG S 91 4.9 1 0.5 2 -12. 7% 4.9% 33 .3% 58 .4% -31 .0% -39. 5%
V O IS , Inc. USD V OIS OT C B B 2 .9 0.3 5 0.0 % -61. 1% -1 2.5% 16 .7% -92 .6% -93. 8%
W ebze n Inc. USD W ZE N N as da qG M 4 2.7 3.6 0 -0.6 % -18. 6% 99 .8% 27 8.9% -0. 6% -23. 1%
W iz za rd S of twa re Corpora tion USD W ZE AME X 3 1.5 0.6 6 1.5 % 1 5.8 % 65 .0% -2 1.4 % -66 .2% -67. 0%
W orlds .com Inc. USD W DDD OT C B B 5 .2 0.1 0 11.1 % -33. 3% -4 4.4% -5 0.0 % -67 .7% -75. 0%
W ynds torm C orporation USD W YND OT C B B 0 .8 0.0 5 -91. 2% -91. 2% -6 2.5% -6 2.5 % -93 .6% -93. 6%
XIN G AG EUR O 1B C XT R A 21 9.3 3 0.0 0 -11. 2% -5.4 % 7 .9% 11 .1% -11 .0% -16. 6%
Y e dangOnline Corp. KR W A 052 770 KO SE 10 8.5 8,81 0.0 0 -5.2 % -22. 4% 7 .0% 46 .6% -22 .7% -29. 0%
Y nk K orea Inc. KR W A 023 770 KO SE 2 6.6 6,35 0.0 0 -0.8 % -23. 1% 73 .7% 27 .0% -52 .8% -54. 8%
ZipLocal Inc. C AD T S XV :ZIP T S XV 0 .3 0.0 1 0.0 % 0.0% -6 6.7% 0 .0% -95 .5% -96. 4%
H igh 1 233 .3% 12 33. 3% 190 0.0 % 90 0.0% 2 78. 9% 7.0 %

Low -91. 2% -91. 2% -9 9.2% -9 9.1 % -99 .7% -99. 8%
A vera ge 579.2 15.5% 23.7% 78.0% 61.7% -22.2% -51.1%
Median -0.7 % -2.8 % 35 .2% 18 .2% -42 .9% -51. 0%
Figure 18. Price Performance

Source. Capital IQ
Page 14

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 11. 1 3.9 x - - - - - -
Actoz S of t C o., L td. G aming S outh K ore a K OS E A 052 790 1 88. 0 1.8 x - 8.1 x - 28 .8x - 3 .3x
AQ Inte ractive , Inc. G aming J a pan TSE 3 838 42. 6 0.2 x - 3.3 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. 5 39.0 x - - - - - -
B e tawave Corpora tion Me dia U nite d S tates OT C B B B WA V 2. 3 - - - - - - 0 .3x
B e yond Commerce, Inc. S ocia l Ne tworking U nite d S tates OT C B B BYO C 35. 5 5.7 x - - - - - -
B right T hings plc S ocia l Ne tworking U nite d K ingdom AIM AIM:B G T 4. 8 17.6 x - - - - - -
B roa dW ebAs ia Inc. S ocia l Ne tworking U nite d S tates OT C P K B WB A 19. 5 - - - - - - -
C D C C orp. G aming H ong K ong N as da qG S C HIN .A 1 47. 5 0.4 x 0.4x 5.2 x 5.6x - 1 0.1 x -
C ha ngyou. com Limite d G aming C hina N as da qG S CY OU 1,9 36. 1 7.9 x 6.1x 12.9 x - 13 .2x 1 2.7 x 1 2.0x
C hina G ate wa y C orpora tion Mobile U nite d S tates OT C P K CG W Y 0. 4 0.1 x - - - - - -
C hine s e G amer International G aming T a iwan GTS M G T S M:308 3 8 66. 9 14.3 x - 25.5 x - 33 .6x - 1 2.6x
C ornerW orld C orporation C ontent U nite d S tates OT C B B CWR L 3. 9 4.1 x - - - - - -
C yberplex Inc. Advertis ing C anada TSX T S X:C X 87. 3 1.2 x 0.9x 11.4 x 7.5x 8. 9x 1 0.5 x 8 .9x
D AD A S pA S ocia l Ne tworking Italy CM CM:DA 1 31. 5 0.8 x - 4.2 x - 22 .5x - -
D XN Holdings B hd S ocia l Ne tworking Malays ia KL SE D XN 24. 8 0.5 x - 3.8 x - 4. 1x - 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 2. 2 5.3 x - - - - - -
D igitalT own, Inc. S ocia l Ne tworking U nite d S tates OT C B B D G TW 55. 5 - - - - - - -
D olphin D igital Me dia, Inc. S ocia l Ne tworking U nite d S tates OT C B B DP DM 25. 8 34.7 x - - - - - -
E olith C o. L td. G aming S outh K ore a K OS E A 041 060 46. 8 3.4 x - - - - - 4 .5x
E xte ns ions , Inc. C ontent U nite d S tates OT C P K E XT I 8. 9 - - - - - - -
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 28. 7 3.9 x 3.2x - - - - 2 .9x
F rogs te r Interactive P icture s AG G aming G ermany XT R A F RG 25. 9 7.6 x - - - - - 3 .9x
G a ma nia D igital E ntertainment C o., L td. G aming T a iwan GTS M 6 180 2 49. 0 1.8 x - 10.8 x - 26 .6x - 3 .2x
G a me On C o L td. G aming J a pan TSE 3 812 1 17. 4 0.7 x - 3.1 x - 13 .7x - 1 .6x
G e oS e ntric O yj Mobile F inland H LS E G E O1V 49. 8 7.8 x - - - - - 8 .6x
G iant Intera ctive G roup, Inc. G aming C hina NYS E GA 1,8 09. 3 - - - - 1. 9x 1 3.3 x 0 .3x
G iga Media Ltd. G aming T a iwan N as da qG S G IG M 2 99. 3 1.2 x 1.2x - 5.8x 11 .8x 1 1.0 x 2 .5x
G ravity C o., L td G aming S outh K ore a N as da qG M GR VY 30. 9 - - - - - - -
G ree, Inc. S ocia l Ne tworking J a pan TSE T S E :3 632 1,6 69. 9 - - - - - - 2 0.8x
G ungH o O nline E ntertainment, Inc. Me dia J a pan OS E 3 765 2 79. 5 2.3 x - 13.0 x - - - 3 9.7x
H anbitS of t, Inc. G aming S outh K ore a K OS E A 047 080 79. 1 1.2 x - - - - - 2 .4x
IAC /InterActiveC orp. Me dia U nite d S tates N as da qG S IAC I 2,4 40. 3 0.4 x 0.4x 13.0 x 3.6x 20 .8x 3 1.9 x 1 .1x
IAS E nergy, Inc. V ide o C anada OT C B B IA S C .A 16. 1 - - - - - - -
is ee media Inc. C ontent C anada T S XV IE E 2. 7 1.2 x - - - - - 2 .3x
J umbuck E ntertainment P ty Ltd. S ocia l Ne tworking A us tralia AS X AS X:J MB 15. 3 0.7 x - 2.0 x - 6. 2x - 1 .6x
J umpT V Inc. V ide o C anada TSX T S X:J T V 68. 1 3.2 x - - - - - 4 .1x
K A B D is tribution Inc. C ontent C anada TSX TS X:K AB 76. 4 1.1 x 1.1x 9.6 x 5.9x - - -
K ings oft Co. Ltd. G aming C hina S E HK 3 888 7 27. 9 5.2 x - 12.8 x - 16 .4x - 3 .9x
Lingo Media Corporation Le arning C anada T S XV TS XV :LM 11. 5 11.7 x - - - - - 1 2.0x
Live World Inc. S ocia l Ne tworking U nite d S tates OT C P K LV W D 3. 1 0.2 x - - - - - 1 .3x
LookS mart, Ltd. D irect Marketing U nite d S tates N as da qG M L OOK 22. 6 - - - - - - 0 .9x
Magnitude Information S ys tems Inc. S ocia l Ne tworking U nite d S tates OT C B B MAG Y 5. 5 - - - - - - -
Mixi, Inc. S ocia l Ne tworking J a pan TSE 2 121 8 38. 5 5.7 x - 16.2 x - 41 .8x - 6 .2x
Mode rn Times G roup Mtg AB Me dia S we den OM MT G B 1,5 77. 6 1.3 x 1.2x 8.2 x 9.9x 4. 9x 1 0.3 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 5. 1 3.5 x - - - - - 3 .9x
Myriad G roup AG Mobile S witz erland SWX MY R N 98. 1 2.7 x - - - - - 4 .4x
N E OW IZ G ames C orpora tion G aming S outh K ore a K OS E A 095 660 5 17. 3 2.6 x - 9.7 x - 31 .5x - 1 5.9x
N etD ragon W ebS oft, Inc. G aming C hina S E HK 777 3 51. 9 2.4 x - 6.2 x - 12 .6x - 1 .9x
N ete as e.com I nc. G aming C hina N as da qG S NT E S 4,1 37. 0 - - - - 2. 5x 1 5.2 x 0 .7x
N eXplore Corpora tion C ontent U nite d S tates OT C P K N XP C 34. 0 - - - - - - -
N gi G roup Inc. Me dia J a pan TSE 2 497 47. 5 0.1 x - 0.6 x - - - 1 .1x
N orthgate Te chnologies L imited D irect Marketing India BS E 59 005 7 26. 7 0.2 x - - - - - -
Open T e xt Corp. C ollaboration C anada N as da qG S O TE X 1,8 57. 1 2.5 x 2.3x 9.7 x 8.4x 29 .0x 1 3.4 x -
Openwave S ys tems Inc. Mobile U nite d S tates N as da qG S OP W V 1 66. 6 0.3 x 0.3x - 3.7x - 3 1.7 x 2 .4x
P e rf ect W orld C o., Ltd. G aming C hina N as da qG S PW R D 1,3 78. 4 0.2 x 1.0x 0.4 x 1.9x 2. 3x 1 1.1 x 0 .9x
Quepa s a C orp. S ocia l Ne tworking U nite d S tates OT C P K QP S A 7. 6 - - - - - - -
OA O R B C Information S ys tems Me dia R us s ia R TS R B CI 1 38. 7 0.0 x - 0.2 x - - - -
S handa Interactive E ntertainme nt L td. G aming C hina N as da qG S S NDA 3,5 92. 6 0.1 x 0.3x 0.1 x 0.7x 2. 8x 1 4.5 x 1 .1x
S hutte rf ly, Inc. D igital Imaging U nite d S tates N as da qG S S FL Y 3 26. 5 1.2 x - 9.2 x 7.0x - - 1 .9x
S K C ommunications Co., Ltd. S e arch S outh K ore a K OS E A 066 270 3 83. 1 2.1 x - 32.6 x - - - -
S N AP Inte ra ctive , Inc. D ating U nite d S tates OT C B B S TVI 7. 0 1.7 x - 6.0 x - 10 .8x - 4 .2x
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. 3 - - - - - - 3 9.5x
S ohu. com Inc. G aming C hina N as da qG S S OH U 2,3 41. 6 4.3 x 3.7x 9.8 x 8.5x 13 .2x 1 6.9 x 6 .3x
S park N etworks , Inc. S ocia l Ne tworking U nite d S tates AME X L OV 49. 4 0.9 x - 4.2 x - 15 .1x - -
S pectrumDN A, Inc. Me dia U nite d S tates OT C B B S P XA 11. 2 - - - - - - 2 9.3x
T encent Holdings L td. P orta l C hina S E HK 700 20,6 94. 5 18.7 x - 39.0 x - 49 .7x - 2 0.7x
T he P arent C ompany Me dia U nite d S tates OT C P K K ID S .Q 0. 6 0.2 x - - - - - -
T he 9 L imited G aming C hina N as da qG S NC T Y 2 81. 6 - - - - 0. 8x 1 4.4 x 0 .1x
T he S treet.com, Inc. Me dia U nite d S tates N as da qG M TSCM 67. 6 0.0 x 0.1x 1.6 x - - - 0 .9x
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 96. 8 0.4 x 0.4x - 4.6x - - 1 .3x
U nis erve C ommunications Corp. S ocia l Ne tworking C anada T S XV T S XV :U S S 1. 5 0.2 x - - - - - -
U nited Online Inc. Me dia U nite d S tates N as da qG S U N TD 5 14. 0 1.0 x 0.8x 4.5 x 3.3x - 7.6x -
U OMO Media , Inc Me dia C anada OT C B B U OMO 14. 6 23.5 x - - - - - -
V a lueC lick Inc. Me dia U nite d S tates N as da qG S VC LK 9 14. 9 1.4 x 1.5x 7.7 x 5.9x - 1 6.7 x 7 .4x
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 42. 7 - - - - - - 0 .0x
W iz za rd S of twa re Corpora tion P odcas ting U nite d S tates AME X W ZE 31. 5 5.9 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 0. 8 - - - - - - -
XIN G AG S ocia l Ne tworking G ermany XT R A O 1B C 2 19. 3 3.2 x - 10.2 x - 21 .0x - 7 .0x
Y e dangOnline Corp. G aming S outh K ore a K OS E A 052 770 1 08. 5 2.2 x - 9.9 x - 11 .8x - 4 .1x
Y nk K orea Inc. G aming S outh K ore a K OS E A 023 770 26. 6 2.3 x - 21.9 x - - - 1 .4x
ZipLocal Inc. D irectory C anada T S XV T S XV :ZIP 0. 3 0.6 x - - - - - -
H igh 20,6 94. 5 39.0 x 6.1x 39.0 x 9.9x 49 .7x 3 1.9 x 3 9.7x
Low 0. 0 0.0 x 0.1x 0.1 x 0.7x 0. 8x 7.6x 0 .0x
A vera ge 579. 2 4.5x 1.5x 9.6x 5.5x 17.0x 15.1x 6.4x
Median 42. 7 1.8 x 1.0x 8.7 x 5.8x 13 .2x 1 3.4 x 3 .2x
Figure 19. Valuation Comparison

Source. Capital IQ
Page 15

Su mmary b y C ountry
C om pany Nam e U S D Market Cap ($m) Avg US D Mar ket C ap ($m) U S D LT M T otal R ev ($m) U S D LT M Total E B IT DA ($m) E B IT DA %
U nited S tates 39 C hina 37, 250.9 China 3,725. 1 C hina 3, 838. 9 C hina 1,773. 8 C hina 47. 9%
C anada 10 U nited S tates 5, 018.6 S weden 1,577. 6 U nited S ta tes 3, 795. 5 S weden 257. 8 Aus tral ia 37. 2%
C hina 10 J a pan 2, 995.4 Japan 499. 2 S weden 1, 682. 9 U nited S ta tes 245. 7 T aiwa n 36. 3%
S outh K orea 9 C anada 2, 135.6 Ta iwa n 471. 8 C a na da 970. 9 C a na da 193. 6 G ermany 31. 2%
J a pa n 6 S weden 1, 577.6 Ca na da 213. 6 S outh K orea 660. 0 J apan 108. 2 J a pa n 21. 9%
T a iwa n 3 S outh K orea 1, 422.8 S outh K orea 158. 1 J a pa n 497. 1 S outh K orea 85. 8 I ta ly 18. 6%
A ustra lia 2 T a iwa n 1, 415.3 Hong K ong 147. 5 H ong K ong 389. 9 T a iwan 52. 3 S weden 15. 3%
G ermany 2 G erma ny 245.2 R us sia 138. 7 T aiwan 365. 5 I taly 43. 3 M a la ys ia 13. 7%
S witz erla nd 1 H ong K ong 147.5 Ita ly 131. 5 I ta ly 233. 0 H ong K ong 30. 8 R uss ia 13. 1%
H ong K ong 1 R uss ia 138.7 United S tates 128. 7 R uss ia 151. 2 R uss ia 19. 7 H ong K ong 7.9%
F inla nd 1 I ta ly 131.5 G erma ny 122. 6 I ndia 115. 2 M alays ia 10. 7 S outh K orea 6.1%
I ta ly 1 S witz erla nd 98.1 S witzerland 98. 1 M a la ys ia 78. 1 G erma ny 10. 3 S witz erla nd 1.9%
U nited K ingdom 1 F inland 49.8 Finland 49. 8 G ermany 55. 7 Aus tralia 2. 9 U nited S ta tes -10.1%
I ndia 1 I ndia 26.7 India 26. 7 S witz erla nd 40. 0 S witz erland 0. 8 I ndia -23.5%
S weden 1 M alays ia 24.8 Malay sia 24. 8 Aus tra l ia 15. 3 N orway -1. 0 C anada -24.8%
R us sia 1 Aus tra lia 20.4 Australia 10. 2 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 4.8 United K ingdom 4. 8 N orwa y 2. 0 F inland -15. 2 U nited K ingdom #DI V /0!
N orway 1 N orway 0.1 Norway 0. 1 U nited K ingdom 0. 3 I ndia -27. 0 F inla nd #DI V /0!
G rand To tal 91 G rand T otal 52,703.8 G rand Total 579.2 G rand T otal 12,897.3 G r and T otal 2,790.6 G rand T otal 6.8%
Figure 20. Comparison by Country

Source. Capital IQ

Su mmary b y Ex c hange
C om pany Nam e U S D Market Cap ($m) Avg US D Mar ket C ap ($m) U S D LT M T otal R ev ($m) U S D LT M Total E B IT DA ($m) E B IT DA %
OT C B B 19 SE HK 21, 774.3 S E HK 7,258. 1 OM 1, 682. 9 N a sdaqG S 1,692. 5 S EHK 42. 6%

N as da qG S 14 N asdaqG S 20, 333.5 NY S E 1,809. 3 N a sda qG S 484. 2 S E HK 662. 9 AS X 37. 2%
OT C P K 11 TSE 2, 715.9 OM 1,577. 6 S E HK 473. 1 OM 257. 8 GT SM 36. 3%
K OS E 7 NYS E 1, 809.3 Na s daqG S 1,452. 4 CM 233. 0 TSE 88. 9 XT R A 31. 2%
TSE 5 OM 1, 577.6 G TS M 558. 0 NYS E 218. 9 K OS E 78. 9 N asdaqG S 30. 1%
N as da qG M 5 K OS E 1, 349.3 TS E 543. 2 R TS 151. 2 GT S M 52. 3 TSE 22. 7%
TSX 4 GTS M 1, 116.0 OS E 279. 5 BSE 115. 2 CM 43. 3 CM 18. 6%
T S XV 4 OT CB B 315.3 K OS E 192. 8 OS E 107. 5 R TS 19. 7 OS E 18. 0%
S E HK 3 OS E 279.5 RT S 138. 7 GT S M 90. 9 OS E 19. 3 OM 15. 3%
A ME X 2 N asdaqG M 260.6 CM 131. 5 K OS E 85. 6 K LS E 10. 7 K LS E 13. 7%
ASX 2 TSX 260.5 XT R A 122. 6 N a sda qG M 80. 9 XTR A 10. 3 R TS 13. 1%
XT R A 2 XT R A 245.2 SWX 98. 1 K LS E 78. 1 AM E X 6. 4 K OS E 5.4%
GT SM 2 R TS 138.7 TS X 65. 1 TSE 77. 9 AS X 2. 9 SWX 1.9%
S WX 1 CM 131.5 Na s daqG M 52. 1 TSX 41. 3 SWX 0. 8 N asdaqG M 1.6%
H LS E 1 SWX 98.1 HL S E 49. 8 SWX 40. 0 NYS E 0. 0 O T CB B -5. 3%
CM 1 AM E X 80.9 AME X 40. 5 AM E X 29. 9 OT CN O -1. 0 TSX -14.3%
B SE 1 OT CP K 75.0 BS E 26. 7 XT RA 27. 8 AI M -1. 8 BSE -23.5%
NYS E 1 H LS E 49.8 KLS E 24. 8 OT CP K 16. 5 TSX -2. 9 AM E X -36.4%
OS E 1 BS E 26.7 O TC B B 16. 6 AS X 7. 7 N a sdaqG M -8. 2 T S XV -39.0%
A IM 1 KLS E 24.8 AS X 10. 2 T S XV 6. 9 T S XV -8. 3 O T CP K -41.3%
OM 1 AS X 20.4 O TC P K 6. 8 HLS E 5. 9 HLS E -15. 2 O T CN O -50.6%
R TS 1 T S XV 16.0 AIM 4. 8 OT CB B 2. 1 BSE -27. 0 H LS E #DI V /0!
K LS E 1 AI M 4.8 TS X V 4. 0 OT CN O 2. 0 OT CP K -43. 4 NYS E #DI V /0!
O T C NO 1 OT CN O 0.1 O TC NO 0. 1 AI M 0. 3 OT CB B -48. 3 AI M #DI V /0!
G rand To tal 91 G rand T otal 52,703.8 G rand Total 579.2 G rand T otal 151.7 G r and T otal 2,790.6 G rand T otal 6.8%
Figure 21. Comparison by Exchange

Source. Capital IQ
Page 16
Financ ing - Las t Three Months (US $ m)

Mo nth Co mpany N ame C ountry An ge l/S eed Debt financ ing PIPE S eries A S eries B S eries C S eries D G rand Total
A pr-09 Co llec tive Media USA 20.0 20. 0
GOOM R adio F ra nce 16. 0 16. 0
Marin S oftware USA 13. 0 13. 0
The R ubic o n Projec t USA 8. 0 5. 0 13. 0
FreeW heel USA 12.0 12. 0
Cellu fun USA 10.0 10. 0
Co nduc tor Inc . USA 10.0 10. 0
S c anS c out USA 8.1 8.1
Batanga USA 7.5 7.5
Viximo USA 5.0 5.0
Do ubleT wis t USA 5. 0 5.0
IMS h opping USA 4.7 4.7
S oc ialtext USA 4.5 4.5
Mixerc as t USA 4. 1 4.1
S ou ndCloud G ermany 3.3 3.3
TubeMog ul USA 3.0 3.0
Tribal No va C anada 2. 5 2.5
Tripbas e USA 2.0 2.0
S oc ialc as t USA 1.4 1.4
Brandtolog y S inga pore 1.4 1.4
S c an & Target F ra nce 1.3 1.3
J odange USA 1.2 1.2
Foodis ta USA 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 ebook USA 200.0 200.0

One Net E n tertainment C hina 10.0 10.0 20. 0
Cyberplex C anada 12.9 12. 9
Peer39 USA 10.5 10. 5
OpenX UK 10.0 10. 0
Imeem USA 8.8 8.8
E veryZing USA 8. 3 8.3
WonderHill USA 7.0 7.0
BlogHer Inc . USA 7. 0 7.0
Fuhu Inc . USA 6. 3 6.3
Azuki S ys tems USA 6.0 6.0
I Love R ewards C anada 5. 9 5.9
TimeBridge USA 5. 0 5.0
OLX USA 5. 0 5.0
Do c uS ign USA 5.0 5.0
Medialets USA 4.0 4.0
Res o nate Netwo rks USA 2.0 2.0
Mo 'Min is I srael 1.5 1.5
VoxP op USA 1. 5 1.5
Loop'd N etwork USA 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 ug ar Inc . USA 16.0 16. 0

Tumri USA 15.0 15. 0
Bo ku USA 13. 0 13. 0
Wimba USA 12.0 12. 0
Grab N etworks USA 12.0 12. 0
beeT V USA 8. 0 8.0
Zoos k USA 6. 0 6.0
Gather USA 5.3 5.3
Taomee C hina 5.0 5.0
Animoto USA 4. 4 4.4
GameG roun d I srael 4.1 4.1
RingR evenue USA 3.5 3.5
YuMe USA 2.9 2.9
eRepublik S pain 2.8 2.8
In igral USA 2.4 2.4
AdE x Media USA 2. 3 2.3
OneT XT USA 2.0 2.0
my6s ens e I srael 2.0 2.0
I Love R ewards C anada 1. 8 1.8
Cliqs et USA 1.5 1.5
AdW h irl USA 1.0 1.0
Pic aboo USA 1. 0 1.0
LiquidPlann er USA 1.0 1.0
Mas hLog ic USA 0.5 0.5
J un-09 T otal 34.2 15.3 7.5 29.2 34.0 5.3 125.5
Figure 22. Financing, Last Three Months

Page 17
C ompany Des c riptio ns - C urrent Mo nth C apital Market A c tivity

C ompany HQ W ebs ite Des criptio n
A dE x media U nited S ta tes www.adex.com Adex Media , I nc . operates a s an integrated I nternet ma rk eting, a dvertis ing, a nd lea d genera tion publisher, a s well as developer, ma rk eter,
a nd dis tributor of con sumer produc ts in the U nited S tates . I ts mark eting platform prov ides v a rious services , including sea rc h mark eting,
displa y mark eting, lea d genera tion, a nd a ffilia te ma rketing; and offers pa y-per-performa nce pricing/cost-per-action/pay-per-a ction based
services . T he company also provides O vernight G enius , a computer learning cours e for MS W indows , MS O ffic e, eB a y , and others; R is ing
S ta r L earning, a ma th a nd la nguage arts educa tional produc t for c hildren; D ebt S nap, a n audio s eminar to help consumers ma na ge their
A nimoto U nited S ta tes www.animoto.com Animoto, I nc. provides a W eb appli cation tha t a utoma tic a lly generates profes siona lly produced videos us ing i ts own cinematic artifi cial
intellige nce technology a nd high-end moti on des ign. Its technology enables videos to get cus tomiz ed orches tration of us er-s elected images
a nd mus ic. T he company wa s founded in 2006 and is based in New Y ork , New Y ork with a n additiona l office in S a n Franc isc o, C alifornia .
A dW hirl U nited S ta tes www.adwhirl.com AdW hirl, I nc. develops online advertisement pla tform for iP hone a pplication developers . The compa ny wa s founded in 2009 and is ba s ed in
Menlo P a rk , C a lifornia .
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.
B oku U nited S ta tes www.boku.com B O K U, Inc. provides online pa y men ts s ervices to pay for virtua l and digital goods with the mobile phone. I t s erves cus tomers in the United
S ta tes and interna tionally . The company was incorporated in 2008 a nd is ba sed in S a n F ra ncis co, C a lifornia with a dditiona l offices in E urope,
Asi a, a nd L atin A meric a .
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.
eR epu blik S pa in www.erepublik.com S C E R P K W E B S A provides online ga ming a nd s ocia l network s ervices. I ts social network allows us ers or citizens to interac t a nd crea te
original content and to follow politica l, economic, and or milita ry as pira tions . T he company wa s founded i n 2007 and is bas ed in B ucha res t,
R oma nia.
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 ath er Inc . U nited S ta tes www.gather.com G a ther, Inc . opera tes a s ocia l network ing s ite for adults. I t ena bles us ers to s hare thoughts, c onv ers a tions, v ideo, information, pictures ,
ideas, a nd a udio. G a ther, I nc. wa s formerly k nown as S uffic iently Adva nced T ec hnology Corporation a nd cha nged its na me to G ather, I nc. in
J uly 2005. The compa ny wa s incorpora ted in 2004 and is hea d quartered in B os ton, Ma s sac hus etts. G a ther, I nc. opera tes as a s ubsidia ry of
American P ublic M edia G roup.
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,
I Love R ewards In c. C a nada www.iloverewards.com V irginiaR. ewards I nc. opera tes as a W eb-ba sed incentive ma rk eting compa ny . It des igns , develops , and imple ments online points -based
I Love
employee rewards a nd recognition programs for compa nies a nd busines s es in N orth America . The compa ny prov ides employ ee recognition,
sales incentives , rec ess ion pa ck age, a nd enga ge generation Y s olutions . I t serves communic a tions , informa tion tec hnology, ins ura nc e,
profes s iona l s ervices , reta il/cons umer goods , hos pita lity, food services , manufac turing, a nd tra ns port industries . I Love R ewards I nc. was
founded in 1995 a nd is ba s ed in Toronto, C a na da .
Inigral U nited S ta tes www.inigral.com Inigra l, Inc. engages in the development of s oc ial network ing website for students , their peers a nd their ins tru ctors. I nigra l, I nc. is based in
P alo A lto, C alifornia .
L iqu idPlan n er U nited S ta tes wwww.liquidpl anner.com L iquidP la nner, I nc. offers online projec t ma na gement tools . I t offers a sy stem for c apturing es tima tes and crea ting proba bilis tic schedules .
The c ompa ny was formerly k nown a s Team46, I nc. The company was founded in 2006 a nd is ba s ed in B ellevue, Was hington.
Mas h Logic U nited S ta tes www.mashlogic.com Ma 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.
On eTX T U nited S ta tes www.onetxt.com O neTX T prov ides a pa yments proces sing a lterna tiv e for s oc ia l network s, onl ine ga mes to a ccept pa yments , c reate loyalty progra ms, a nd
send marketing mes sa ges .
P ic aboo U nited S ta tes www.picaboo.com P ic aboo C orporation provides onli ne photo book s a nd cards . I t offers a software progra m tha t turns photos into photo book s. The company
was founded in 2002 a nd is ba sed in M enlo P a rk , C a lifornia .
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.
T aoMee C hina www.taomee.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.
T um ri U nited S ta tes www.tumri.co Tumri, I nc. provides online dis pla y a dvertising sol utions . The c ompa ny ’s s olution, the AdP od, ena bles a dv ertis ers to c rea te a nd del iver
ta rgeted online dis play a ds to consumers . It serves a dvertis ers , crea tiv e and media buy ing agencies , and publishers . The compa ny wa s
founded in 2004 a nd is ba s ed in Mountain V iew, C a lifornia .
W imba Inc U nited S ta tes www.wimba.com W imba , Inc . provides learning s oftwa re a pplic a tions a nd s ervices to the educ a tion indus try in the Un ited S ta tes and the United K ingdom. The
company offers D iploma , a qu estion authoring an d management tool tha t allows ins truc tors to c reate or edit ques tions; C la s sroom 5. 2, a
clas s room environment with va rious features that include audio, vid eo, a pplica tion sharing, and c ontent dis pla y; and C ollabora tion S uite tha t
a llows ins titutions to bridge the gap between technology a nd peda gogy by s upplementing cours e management s ys tems . It a ls o provides
C reate, a content authori ng tool, which c onverts M icros oft W ord doc uments into content for online cours es; P ronto, an a ca demic mes saging
pla tform, whic h is designed for educ ators to a dva nc e and promote lea rning; V oic e, a W eb-ba s ed voic e s olution th at fa cilita tes and promotes
voc al in struction, colla bora tion, c oa c hing, a nd a s s ess ment; and C M S Integra tion. I t s erves univ ersities , community colleges , s chool districts ,
a nd educ ation ins titutions. T he company was formerly known as H orizon W imba , Inc . a nd changed its na me to W imba , I nc. in April 2007.
W imba , Inc . wa s founded in 1998 and is ba sed in N ew Y ork , New Y ork with additiona l offic es in C a mbridge, U nited K ingdom; a nd A tlanta , G eorgia.
Yu Me U nited S ta tes www.yumenetworks.com Y uMe, I nc . operates a s a v ideo a dvertis ing network on W eb. I t offers a d mana gement sy stem tha t enables a dvertis ers a nd publishers to
identify, cla s sify , a nd tra ck content throu gh digita l media pla tforms, s uch a s W eb, downloads, mobile, a n d I P TV . The compa ny a ls o enables
publishers to orga nize video on their site i nto content cha nnels, s uch a s automotiv e, fi na ncial serv ices , lifesty le, news , music , s ports ,
enterta inment, a nd family friendly. In a ddition, it offers rea l-time ta rgeting, mea s urement, and optimiza tion; c ontent distribution and vira l
a dvertising opportunities ; a suite of intera ctiv e a d plac ements ; a nd v ideo monetiza tion s ervices . F urther, the c ompany provides a beha viora l
ta rgeting sy stem tha t enables advertis ers to target their mess ages to v iewers on a na tional sc a le ba s ed on v ideo v iewing interes ts and
purchas e intent. Y uMe, Inc . wa s founded in 2004 a nd is hea dquartered in R edwood C ity, C alifornia .
Z o os k U nited S ta tes www.zoosk.com Zoos k , Inc. opera tes a s an online s ocia l da ting network . The c ompa ny was founded in 2007 a nd is ba s ed in S an F ra nc isco, C a lifornia .
Figure 23. Company Descriptions

Source. Company reports, Capital IQ, Crunchbase
Page 18
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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SOFTWARE & SERVICES 23 JUNE 2009

DAVID SHORE, CFA, MBA 416.860.6784

THE WEB 2.0 UNIVERSE

Figure 1. Web 2.0 Universe Summary

Financing Activity Last Three Months

Figure 2. Financings, Last Three Months

Financing & M/A Summary - Last Three Months

The Rubicon Project

Scan & Target

Figure 3. Capital Market Activity, Last Three Months

Capital Market Activity by Sector - Last Three Months

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

Web 2.0 Index Price Performance

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

Figure 5. Web 2.0 Price Performance

1 Week P rice P erformance

Figure 6. 1-Week Price Performance

INDUSTRY NEWS (PARTNERSHIPS, FINANCIAL RESULTS, NEW PRODUCTS)

Figure 7. Key Developments

Figure 8. Market Cap Ranking

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

NE O WIZ G a mes C orporation

G ungHo O nline E ntertainment,

C hangy ou.com Limited

S K C ommunications C o., Ltd.

F luid Mus ic C anada, Inc.

Digita lP os t Interac tive, Inc.

Dolphin Digita l Media, Inc.

Modern T imes G roup Mtg AB

C ornerWorld C orpora tion

Lingo Media C orpora tion

U nited O nline Inc.

S NAP Interac tive, Inc.

IAC /InterActiveC orp.

S park Network s , Inc.

V a lueC lick Inc.

NetDragon WebS oft, Inc.

F rogs ter Interac tive P ictures AG

T enc ent H oldings Ltd.

B right T hings plc

P erfec t World C o., Ltd.

O penwa ve S y s tems Inc.

K AB Dis tribution Inc.

Y edangO nline C orp.

B igs tring C orp.

Ac celeriz e New Media, Inc.

K ings oft C o. L td.

Wiz z a rd S oftware C orporation

Figure 9. TEV/Revenue Ranking

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

8.8 10.0 7.8

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

G amania Digital E ntertainment C o. , Ltd.

G ungHo O nline E ntertainment, Inc .

C hines e G amer International

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

C hangy ou. c om L imited

Ngi G roup Inc .

T heS treet. c om, Inc .

U nited O nline Inc .

S NAP Interac tive, Inc .

S park Network s , Inc.

NetDragon W ebS oft, Inc.

V alueC lic k Inc.