Web 2.

0 Weekly
“July Financings – Approaching High for 2010”
July 27, 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 (past week)
Deals (M&A, Finance) – Jive – the Social Enterprise

Jive Software received the biggest investment of the week at $30 mm, bringing its total
capital raised to date to $57 mm – the company brings social network-like functions to
the realm of enterprise collaboration.

Advertising networks continue to receive the most attention among sectors we track –
this week, $24.6 mm in financings were announced, including sports-related ad network
Sportgenic (acquired by Glam Media for $12 mm), and TurnHere ($12.6mm in Series
B funds).

Rumour alert – we continue to hear more frequent buzz concerning the potential
acquisition of social gaming developer Playdom by Disney.

Synchronica (AIM:SYNC) intends to acquire iseemedia (TSXV:IEE) for C$8.8 mm in
stock – both companies are engaged in mobile communications development, such as
email-to-SMS.
Financial Results/Guidance/Partnerships/Product

Online gaming in China is big business: Sohu.com (parent company of
Changyou.com and leading online gaming provider in China) reported Q2/F10 results,
including revenue of $146 mm (+15% Y/Y), operating profit of $51.2 mm (+6% Y/Y),
operating margin of 35.0% (Q2/F09: 38.1%), and EPS of $0.82 (Q2/F09: $0.79).
2 www.mackieresearch.com
 Public Company Data

3 www.mackieresearch.com
 Aggregate Public Data

Web 2.0 Public Companies Total Median Max Min

# Companies 102 - - -
Market Cap (US$ mm) 83,771.6 50.2 32,565.7 0.0
Revenue (US$ mm) 28,481.4 43.9 6,736.1 0.0
1 Year revenue growth 1.9% 8961.6% -100.0%
EBITDA as % of revenue - 8.3% 63.1% -99.5%
Net cash (US$ mm) 17,044.9 2.9 6,535.8 -670.8
TEV/Revenue - 1.8x 42.3x 0.0x
TEV/EBITDA - 8.5x 40.6x 0.1x
P/E - 16.1x 99.9x 0.0x
Relative to 52 week high -42.8% 0.0% -93.3%

Source: CapitalIQ

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

28
Social Networking

16
Media

10
9
Diversified

6
Mobile

5
Marketing

Source: CapitalIQ
3
Infrastructure

3
SMS/Voice

3
Enterprise

3
Advertising

2
Internet Retail

2
Virtual World
By Sector

2
Dating

2
Music

1
Vertical Communities

1
Search

1
Podcasting

1
Learning

1
Video

1
Collaboration

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

Hong Kong

Germany

Poland

Australia

United Kingdom
By Country

Italy

Finland

Sweden

India

Russia

Malaysia

Switzerland
www.mackieresearch.com
 Valuation Dashboard – 1 Week
Market Cap EV/Revenue

Flat Flat
12% 6%
Falling
41%

Rising
Falling 54%
34%

Rising
53%

EV/EBITDA P/E

Flat Flat
Falling 2% 6%
31%

Falling
38% Rising
56%

Rising
67%
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
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
Median EV/Revenue

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
11/30/2009
12/7/2009

Median
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

Long-term average
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
average

4/26/2010
5/3/2010
well below LT

5/10/2010
5/17/2010
down slightly, still
Revenue multiples

5/24/2010
5/31/2010
6/7/2010
6/14/2010
6/21/2010
6/28/2010
7/5/2010
7/12/2010
7/19/2010
7/26/2010
383939394040394242444546464546474951515052535658616161636666666566667071707274716871707173747679788179807978808284828384

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

# companies
0. 0x
5. 0x
10. 0x
15. 0x
20. 0x
25. 0x
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
Median EV/EBITDA

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
11/30/2009
12/7/2009

Median
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

Long-term average
3/1/2010
3/8/2010
3/15/2010
3/22/2010
3/29/2010
4/5/2010
average

4/12/2010
4/19/2010
4/26/2010
5/3/2010
5/10/2010
5/17/2010
this week, still below LT

5/24/2010
EV/EBITDA multiples down

5/31/2010
6/7/2010
6/14/2010
6/21/2010
6/28/2010
7/5/2010
7/12/2010
7/19/2010
7/26/2010
19 21 21 22 22 21 21 23 23 22 22 23 23 25 25 25 25 24 24 25 26 28 29 31 32 34 35 37 40 38 39 38 39 40 38 38 38 41 42 40 41 41 41 40 42 43 46 45 44 50 49 48 50 49 49 49 49 48 49 50

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

# companies
0. 0x
5. 0x
10. 0x
15. 0x
20. 0x
25. 0x
30. 0x
35. 0x
6/8/2009
6/15/2009
6/22/2009
Median P/E

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
11/30/2009
12/7/2009

Median
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

Long-term average
3/1/2010
3/8/2010
3/15/2010
3/22/2010
3/29/2010
4/5/2010
4/12/2010
LT average

4/19/2010
4/26/2010
5/3/2010
5/10/2010
5/17/2010
2nd week), but still below
P/E multiples tick up (for

5/24/2010
5/31/2010
6/7/2010
6/14/2010
6/21/2010
6/28/2010
7/5/2010
7/12/2010
7/19/2010
7/26/2010
19 19 18 18 19 19 19 20 20 19 18 19 19 19 19 20 24 23 24 24 25 26 26 28 30 31 31 31 32 32 34 36 37 38 38 38 38 39 40 41 39 39 39 37 36 37 34 33 32 35 35 35 35 35 35 36 34 32 33 34

www.mackieresearch.com
 10
-
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0

# Companies 2
Infrastructure

13.5

2
Virtual World
13.3

9
Social Networking

10.0

1
Learning

7.9

4
Mobile

5.1

2
Music

4.7

6
Diversified

3.9
Gaming

21
3.7

1
Search
3.6

1
Vertical Communities
3.0

5
Marketing
2.9

1
Podcasting
2.8
Average EV/Revenue – by Sector

3
SMS/Voice
2.6

1
Collaboration
2.6

3
Advertising
2.2

Media
2.2

Internet Retail
2.0

Enterprise
1.9

Video
1.5

Dating
1.4

Financial Services
0.4

www.mackieresearch.com
 Average EV/EBITDA – by Sector

45.0

40.0 38.8

35.0

30.0

25.0

19.2
20.0 18.1

15.0
12.5 12.3 11.6 11.1
9.4 9.4
10.0
7.0 6.9

5.0 3.9

-
Diversified

Advertising
Internet Retail
Search

Mobile

Enterprise

Gaming

Social Networking

Collaboration

Media

Marketing

Dating
# Companies 1 3 2 5 13 2 6 1 6 2 1 1

11 www.mackieresearch.com
 Average P/E – by Sector

120.0

100.0 95.6

80.0

60.0 55.7

41.3
40.0 37.1

25.9

19.2
20.0
14.3 14.1 13.4
7.6

-
Internet Enterprise Collaboration Diversified Social Marketing Media Advertising Gaming Virtual World
Retail Networking

2 3 1 9 16 5 10 3 28 2
# Companies

12 www.mackieresearch.com
 13
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
42
Ac credited Members H olding C orporation

Source: CapitalIQ
32
S ocialG O P LC

27
Worlds .c om Inc .

26
S pec trumDNA, Inc .

17
T encent H oldings L td.
MO K O . mobi L imited

15 15
G eoS entric O y j

11
G ree, Inc .
P aid Inc .
B ey ond C ommerce, Inc .

10 10 10
C hines e G amer International

8
L ingo Media C orporation
Mood Media C orporation

7 7
DigitalP os t Interactive, Inc .
T rans G aming, Inc .

7 6
Dena C o. L td.
Ac celeriz e New Media, Inc.

5 5
HU G H E S T elematic s , Inc .
Mix i, Inc.
C hangyou. com Limited
F rogs ter Interac tiv e P ic tures AG

4 4 4 4
T aleo C orp.
S K C ommunications C o., L td.

4 3
K ings oft C orporation Limited
WebMediaB rands Inc
Motric ity , Inc .
Wiz z ard S oftware C orporation
O pen T ex t C orp.
EV/Revenue Ranking

3 3 3 3 2
eP ro L td.
Modern T imes G roup Mtg AB
S ohu.c om Inc .
XING AG
S hutterfly, Inc.
NE O WIZ G ames C orporation
S core Media Inc.
U O MO Media, Inc
V elti P lc
V alueC lick , Inc .
H anbitS oft, Inc.
Myriad G roup AG
2 2 2 2 2 2 2 2 2 2 2 2

P NI Digital Media Inc .

G ungH o O nline E ntertainment, Inc .
P latforma Mediowa P oint G roup S . A.
NeuL ion Inc orporated
is eemedia Inc .
Webz en Inc.
S NAP Interactive, Inc .
Accredited Members

S park Network s , Inc .

revenue multiple at 42x

G amania Digital E ntertainment C o., L td.

Holding Co. has highest

Hutc his on T elec ommunic ations Hong

U nilav a C orporation
Y D O nline C orp.
2 2 2 2 1 1 1 1 1 1 1 1

NetDragon WebS oft, Inc.

Y nk K orea Inc.
O riented Media G roup B erhad
AQ Interactive, Inc .
Internet G roup S A
IAC /InterAc tiv eC orp.
O AO R B C Information S ys tems
T heS treet. com, Inc .
T he New Y ork T imes C ompany
P oints International L td.
U nited O nline, Inc .
DADA S pA
Northgate T echnologies Limited
C DC C orp.
Unis erve C ommunic ations C orp.
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

AO L, Inc.
G lu Mobile, Inc .
G igaMedia L td.
T ree. C om, Inc .
O penwav e S y s tems Inc.
C y berplex Inc.
R ealNetwork s Inc .
Actoz S oft C o., Ltd.
J umbuc k E ntertainment L imited
Look S mart, L td.
As k net AG
1 1 0 0 0 0 0 0 0 0 0

G ameO n C o L td.
0

Ngi G roup Inc .

www.mackieresearch.com
 14
0. 0
5. 0
10. 0
15. 0
20. 0
25. 0
30. 0
35. 0
40. 0
45. 0

Source: CapitalIQ
HanbitS oft, Inc .

40.6
S K C ommunic ations C o. , Ltd.

38. 8
T enc ent Holdings Ltd.

32. 6
T aleo C orp.

30.1
F rogs ter Interac tive P ic tures AG
Motric ity , Inc .

26.326.1
C hines e G amer International
Mix i, Inc .
G ree, Inc .

18.918. 718. 3
My riad G roup AG

17. 8
Modern T imes G roup Mtg AB
S hutterfly , Inc .
AQ Interac tive, Inc .
16.215.815.8

T heS treet. c om, Inc .

15. 0
EV/EBITDA Ranking

Dena C o. Ltd.
O penwave S y s tems Inc .
13. 713. 6

S c ore Media Inc .

12.6

IAC /InterAc tiveC orp.

Y D O nline C orp.
11.110.8

O pen T ex t C orp.
DADA S pA
9.4 8.9

XING AG
group at 40.6x

G amania Digital E ntertainment C o., Ltd.

HanbitSoft leads the

K ings oft C orporation Limited

N etDragon WebS oft, Inc .
8.5 8. 4 8. 2 7. 9

G ungHo O nline E ntertainment, Inc .

V elti P lc
P NI Digital Media Inc .
Unis erve C ommunic ations C orp.
NE O WIZ G ames C orporation
S park Network s , Inc .
C hangy ou. c om Limited
V alueC lic k , Inc .
7.5 7.4 7.3 7.3 7. 2 6. 9 6.9 6.6

C DC C orp.
Hutc his on T elec ommunic ations Hong K ong Holdings Ltd.
S ohu.c om Inc .
6.1 5.7 5. 5

T he New Y ork T imes C ompany

United O nline, Inc .
4. 8 3.9

C y berplex Inc .
3.9

AO L, Inc .
Ac toz S oft C o., Ltd.
2.1 1.6

J umbuc k E ntertainment Limited

G ameO n C o Ltd.
Ngi G roup Inc .
0. 4 0. 4 0. 1

www.mackieresearch.com
Excluding EV/EBITDA > 100x
 15
Source: CapitalIQ
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
eP ro Ltd.

S hutterfly , Inc. 94.5

87.6
P oints International Ltd.

64.6
Mix i, Inc .
P/E Ranking

C DC C orp.

50. 3 48. 4
T enc ent H oldings Ltd.

43. 9
O pen T ex t C orp.

NetDragon W ebS oft, Inc . 40. 3

G ree, Inc .

G amania Digita l E ntertainment C o., Ltd.

31. 7 31. 2 30.5

F rogs ter Intera ctive P ictures AG

29.2

Dena C o. Ltd.
27.2

C hines e G amer Internationa l

V elti P lc
24.4 23.6

Hutc his on T elec ommunications H ong K ong H oldings Ltd.

NE O W IZ G ames C orporation
P/E at 94.5x

17.8 17.2

DADA S pA
ePro has the highest

T he New Y ork T imes C ompany

V alueC lic k , Inc.

C y berplex Inc .

S ohu.com Inc .
15.1 14.9 14.8 14.3 13.4

K ings oft C orpora tion L imited

AO L , Inc.
12.6 10.8

C hangy ou. com L imited

9.3

G ameO n C o Ltd.
8.5

U nited O nline, Inc .

8.5

Ngi G roup Inc .

7.3

Unis erve C ommunic ations C orp.

5.1

J umbuc k E ntertainment Limited

2.9

N etea s e.com Inc .

2.3

G iant Intera ctive G roup, Inc .

2.0

S ha nda Interac tive E ntertainment Ltd.

1.9

www.mackieresearch.com
 16
Source: CapitalIQ
(U S $m)

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

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
11/30/2009
12/7/2009
12/14/2009
12/21/2009
12/28/2009
Total Market Capitalization

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
4/26/2010
5/3/2010
5/10/2010
5/17/2010
index

5/24/2010
5/31/2010
6/7/2010
in our Web 2.0
103 companies

6/14/2010
at $83.8 bn with
Total market cap

now represented

6/21/2010
6/28/2010
7/5/2010
7/12/2010
7/19/2010
7/26/2010
96 96 96 96 96 96 96 96 96 96 97 97 97 97 97 97 97 98 98 98 98 98 98 98 98 98 98 98 98 99100100100100100100100100100100100100101101101101102102102101102102

www.mackieresearch.com
 17
-

# 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

9
Diversified

Gaming

28
Media

10
Social Networking

16
6
Mobile

1
Collaboration

3
Enterprise

5
Marketing

2
Internet Retail

1
Search
Total Market Cap – by Sector

3
SMS/Voice

1
Financial Services

2
Dating

2
Music

3
Advertising
2
Virtual World
1

Video
$36 bn in market cap

Vertical Communities
1

Payment
Nine Diversified companies totaling

Podcasting
3

Infrastructure
1

Learning
www.mackieresearch.com
 18
0
1,000
2,000
3,000
4,000
5,000
6,000
Tencent Holdings Ltd.
Frogster Interactive Pictures AG
Netease.com Inc.
Dena Co. Ltd.

Source: CapitalIQ
IAC/InterActiveCorp.
Shanda Interactive Entertainment Ltd.
Open Text Corp.
AOL, Inc.
GeoSentric Oyj
Sohu.com Inc.
Giant Interactive Group, Inc.
Changyou.com Limited
The New York Times Company
GungHo Online Entertainment, Inc.
Perfect World Co., Ltd.
Taleo Corp.
ValueClick, Inc.
Chinese Gamer International
Thwapr, Inc.
Shutterfly, Inc.
NEOWIZ Games Corporation
SK Communications Co., Ltd.
United Online, Inc.
RealNetworks Inc.
Hutchison Telecommunications Hong Kong Holdings
Motricity, Inc.
NetDragon WebSoft, Inc.
Gree, Inc.
CDC Corp.
Velti Plc
Myriad Group AG
Gamania Digital Entertainment Co., Ltd.
XING AG
Market Cap Ranking

Openwave Systems Inc.

MOKO.mobi Limited
OAO RBC Information Systems
The9 Limited
GigaMedia Ltd.
AQ Interactive, Inc.
Webzen Inc.
TheStreet.com, Inc.
Points International Ltd.
DADA SpA
Tree.Com, Inc.
HUGHES Telematics, Inc.
Actoz Soft Co., Ltd.
Score Media Inc.
Spark Networks, Inc.
Mood Media Corporation
Paid Inc.
NeuLion Incorporated
YD Online Corp.
Platforma Mediowa Point Group S.A.
Quepasa Corp.
Ngi Group Inc.
PNI Digital Media Inc.
Cyberplex Inc.
Glu Mobile, Inc.
Gravity Co., Ltd
Yippy, Inc.
DigitalTown, Inc.
ePro Ltd.
TransGaming, Inc.
Multiplied Media Corporation
WebMediaBrands Inc
LookSmart, Ltd.
dominates group

VOIS, Inc.
Socialwise, Inc.
Accredited Members Holding Corporation
NeXplore Corporation
Ynk Korea Inc.
Asknet AG
Tencent’s $32.6 bn market cap

Accelerize New Media, Inc.

Wizzard Software Corporation
Moggle, Inc
Northgate Technologies Limited
Dolphin Digital Media, Inc.
iseemedia Inc.
SocialGO PLC
DigitalPost Interactive, Inc.
Kent International Holdings Inc.
SNAP Interactive, Inc.
Jumbuck Entertainment Limited
Unilava Corporation
Modern Times Group Mtg AB
SpectrumDNA, Inc.
Kiwibox.Com, Inc.
Worlds.com Inc.
Beyond Commerce, Inc.
Oriented Media Group Berhad
Uniserve Communications Corp.
En2Go International, Inc.
IAS Energy, Inc.
Internet Group SA
UOMO Media, Inc
Mobile Data Corp.
LiveWorld Inc.
Lingo Media Corporation
Kingsoft Corporation Limited
GameOn Co Ltd.
HanbitSoft, Inc.
www.mackieresearch.com
 Price Performance – 1 Week
• Moderately negative price momentum,
with 48% of stocks falling over the past Price Momentum
week (after 51% of stocks declines last
Flat
week).
14%
• The market has generally seen more
decliners than risers over the past two
months, with an average of two to three
down weeks per up week.

Rising Falling
48% 38%

19 www.mackieresearch.com
 Average Price Performance – 1 Week, by Sector

10.0% 8.1%
7.1%

5.0% 3.8%
2.6% 2.5% 2.4% 2.3%
1.5% 1.3%
0.4% 0.1%
0.0%
-0.3% -0.4%
-2.0% -2.4%
-5.0% -3.1%
-4.3%
-6.0%
-10.0%
Dating sector shows highest
-15.0%
weekly returns -12.2%
-14.5%-15.3%
-20.0%
-20.4%
-25.0%
Internet Retail

Infrastructure
Collaboration

Networking

Virtual World
Financial

Payment

Communities
Advertising

Learning
Music
Dating

Enterprise

Gaming

Mobile

Podcasting

Marketing

Diversified

Search
Services

Media

Video

SMS/Voice
Social

Vertical

Source: CapitalIQ

20 www.mackieresearch.com
 21
-60.0%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
LVWD
WDDD
IASC.A
IEE
UOMO

Source: CapitalIQ
YIPI
BYOC
NXPC
MBYL
A047080
TSXV:LM
PAYD
ASX:JMB
VOIS
A052790
TSX:PTS
HUTC
A066270
MOTR
TSX:NLN
A052770
590057
VEL
WSE:PGM
GA
3765
QPSA
ACCM
CM:DA
XTRA:A5A
3812
A095660
PWRD
TSX:CX
TSXV:PN
AOL
GIGM
700
WEBM
KOSE:A069
ACLZ
RBCI
SPXA
GEO1V
DB:M0C
TSXV:MMC
TSXV:USS
UNLA
ETGI
Price Performance – 1 Week

DGLP
DGTW
DPDM
THWI
WZE
6180
SCLW
SEHK:215
O1BC
GLUU
FRG
SNDA
A023770
OTEX
TREE
KNTH
LOOK
777
LOV
GTSM:3083
VCLK
MYRN
GRVY
MTG B
2497
SEHK:8086
3838
CHIN.A
3888
IACI
RNWK
CYOU
TSCM
TSX:SCR
TLEO
TSX:MM
SFLY
OPWV
SOHU
NYT
2121
TSE:2432
STVI
UNTD
TSXV:TNG
TSE:3632
NTES
WSE:IGR
NCTY
KIWB
AIM:SGO
OMEDIA
MKB
www.mackieresearch.com
 22
0%
10%
20%
30%
40%
50%
60%

0%
500%
1000%
1500%
2000%
2500%
3000%
GeoSentric
OAO RBC Oyj
Information Systems

Frogster
Beyond Commerce, Interactive

Source: CapitalIQ
Inc. Pictures AG

VOIS, Inc.
ePro Ltd.

SpectrumDNA,
AQ Interactive, Inc. Inc.

Netease.com
Shutterfly, Inc. Inc.

6 Month
1 Month

LookSmart,
LookSmart, Ltd. Ltd.

Score Media Inc. The9 Limited

Points International NeXplore

Ltd. Corporation

MOKO.mobi
Dena Co. Ltd.
Limited

Hutchison
Telecommunications
Mixi, Inc.
Hong Kong Holdings
Ltd.
Price Performance (Top 10)

0%
10%
20%
30%
40%
50%
60%

0%
500%
1000%
1500%
2000%
2500%
3000%
3500%

OAO RBC
ePro Ltd.
Information
Systems

Yippy, Inc. LookSmart, Ltd.

ePro Ltd. Gree, Inc.

Frogster Interactive
Quepasa Corp. Pictures AG

AQ Interactive, HanbitSoft, Inc.

Inc.
1 Year
3 Month

SNAP Velti Plc

Interactive, Inc.

Dena Co. Ltd. ValueClick, Inc.

Hutchison
Uniserve
Telecommunications
Communications Hong Kong Holdings
Corp. Ltd.
Uniserve
Velti Plc Communications
Corp.

SK
Communications Myriad Group AG
Co., Ltd.
www.mackieresearch.com
 23
-50.0%
-45.0%
-40.0%
-35.0%
-30.0%
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%

-100.0%
-90.0%
-80.0%
-70.0%
-60.0%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
Jumbuck HanbitSoft,
Entertainment Inc.
Limited

Mobile Data
Kiwibox.Com,

Source: CapitalIQ
Corp.
Inc.

NeXplore
Paid Inc. Corporation

Beyond
UOMO Media, Commerce,
Inc Inc.

iseemedia Inc. Yippy, Inc.

1 Week

6 Month
Unilava UOMO Media,
Corporation Inc

Lingo Media iseemedia

Corporation Inc.

SpectrumDNA, IAS Energy,

Inc. Inc.

Mobile Data Worlds.com

Corp. Inc.

En2Go
LiveWorld
International,
Inc.
Inc.
-60.0%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%

-90.0%
-80.0%
-70.0%
-60.0%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
Price Performance (Bottom 10)

Northgate Actoz Soft Co.,

Technologies Ltd.
Limited

Wizzard WebMediaBrands
Software Inc
Corporation

Unilava
Moggle, Inc Corporation

Lingo Media
iseemedia Inc.
Corporation

Cyberplex
Paid Inc.
Inc.
1 Year
1 Month

Dolphin Digital Beyond

Media, Inc. Commerce, Inc.

En2Go
En2Go
International,
International, Inc.
Inc.

IAS Energy,
LiveWorld Inc.
Inc.

Beyond
Commerce, Yippy, Inc.
Inc.

UOMO Media,
IAS Energy, Inc.
Inc
www.mackieresearch.com
 Capital Market Activity (Financing, M&A)

24 www.mackieresearch.com
 Capital Market Activity – Current Month
C ompany Name C ountry S ec tor Acquis ition Angel/S eed Debt financ ing P IP E S eries A S eries B S eries C NA G rand Total
ITA S oftware US A S earch 700.0 700. 0
infoG R OUP US A Advertis ing 644.9 644. 9
Digital S ky Technologies R us s ia Divers ified 388.0 388. 0
Zynga US A G a ming 100.0 100. 0
Atlas s ian Aus tra lia E nterpris e 60.0 60. 0
S quares pac e US A B log 38.5 38. 5
S ys omos C ana da Analytics 35. 0 35. 0
J ive S oftware US A C ollaboration 30.0 30. 0
Ads market Is rael Advertis ing 17. 0 17. 0
B uyWithMe US A S ocial C ommerce 16.0 16. 0
S hopkick US A S ocial C ommerce 15.0 15. 0
hi5 US A S ocial Networks 14. 0 14. 0
TurnHere US A Advertis ing 12.6 12. 6
S portgenic US A Advertis ing 12. 0 12. 0
P ixazza US A V is ual C ommerce 12.0 12. 0
B eyond The R ack C ana da S ocial C ommerce 12. 0 12. 0
OC TANE 360 US A Advertis ing 10. 9 10. 9
Flipboard US A Media 10.5 10. 5
7 S tar E ntertainment US A Media 10. 0 10. 0
My-wardrobe.com UK Internet R etail 9.0 9.0
Flirtomatic UK S ocial Networks 9.0 9.0
InMobi India Advertis ing 8.0 8.0
AdS afe Media US A Advertis ing 7.3 7.3
MadB id.c om UK Online Auction 6.2 6.2
K omli Media India Advertis ing 6. 0 6.0
Trada US A V ertica l C ommunities 5.8 5.8
Zattikka US A G a ming 5. 5 5.5
C ompas s L abs US A Advertis ing 5. 0 5.0
Aurora F eint US A G a ming 5. 0 5.0
Xgraph US A Analytics 3. 8 3.8
Movitas US A Mobile 3.0 3.0
B etable UK G a ming 3.0 3.0
P lum Dis tric t US A S ocial C ommerce 2.1 2.1
Vivox US A S MS /V oice 2. 0 2.0
ThredUP US A S ocial C ommerce 1. 7 1.7
G roupS paces UK V ertica l C ommunities 1. 3 1.3
iG uiders US A S earch 1.0 1.0
Maven R es earc h US A C omment/R eputation 1. 0 1.0
G endai G ames US A G a ming 1.0 1.0
S oho OS US A E nterpris e 1. 0 1.0
S eatG eek US A Analytics 1.0 1.0
Matomy Is rael W idget 1. 0 1.0
P layHaven US A G a ming 1.0 1.0
Hive7 US A G a ming 0. 9 0.9
L ivefyre US A C omment/R eputation 0.8 0.8
B lueS warm US A S ocial C ommerce 0. 8 0.8
Ze F rank G ames US A G a ming 0. 5 0.5
K ukunu UK T ravel 0. 4 0.4
J igs ee C ana da V ideo
1403.7 3.7 1.0 388.0 136.1 70.9 44.8 184.3 2232.3

25 www.mackieresearch.com
 Capital Market Activity – Current Month, by Sector
$ Raised # Deals

Other Diversified
Diversified 12% 4%
Search
19%
9%

Other
48%

Advertising
35%
Advertising
39%
Search
34%

26 www.mackieresearch.com
 Financing Activity

Large transactions drive July

1000.0 25.0
financing to near record levels
900.0
19.7
800.0 20.0

700.0

600.0 13.7 15.0

(US$m)

(US$m)
12.2
500.0
10.1
9.6
400.0 10.0
8.3 8.1
7.2
300.0 6.3 6.4
5.7 5.5
5.2
200.0 5.0

100.0

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

*Dec-09 includes $180m Zynga investment

Apr-10 includes $300m DST investment
Total Average per Deal LTM Total Average
Jun-10 includes $147m Zynga investment

27 www.mackieresearch.com
 28
(US$m)

0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
800.0
900.0
1,000.0

# companies
Advertising

27
7
Search

Gaming

20
1
Diversified

8
Media

Social Commerce

13
Analytics

13
7
Internet Retail

6
Enterprise

4
Collaboration

Mobile

11
8
Social Networks

2
Music

5
Virtual World

1
Blog

7
Vertical Communities

3
Location-based SNS

6
Infrastructure

4
Video

2
SMS/Voice
deals, $881 mm)

4
area of interest in the
past three months (27

Comment/Reputation
Advertising the biggest

Mobile Ad
2

Virtual Goods
3

Financial Services
1

Visual Commerce
2

Widget
3

Aggregation
2

Publishing
4

Travel
1

Online Auction
Capital Market Activity Ranking – by Sector, last three months

Microblog
1

Online Learning
Crowdsourced
1

Content
www.mackieresearch.com
 29
(US$ mm)

0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
Jan-08

Feb-08

Mar-08
Apr-08

May-08
Jun-08

Jul-08
Aug-08

Sep-08
Oct-08

Nov-08

Dec-08

Social Networks
Jan-09

Feb-09

Mar-09

Gaming
Apr-09
$ Raised

May-09

Jun-09

Advertising
Jul-09
Aug-09

Video
Sep-09

Oct-09

Diversified
Nov-09

Dec-09
Jan-10

Feb-10

Mar-10
Apr-10

May-10

Jun-10

Jul-10
Top 5 Sectors (2008-present)

(# Deals)
0
5
10
15
20
25
30

Jan-08

Feb-08

Mar-08

Apr-08

May-08

Jun-08
Jul-08

75% of financing comes from Top 5 sectors Aug-08

Sep-08

Oct-08

Nov-08
Advertising

Dec-08
Jan-09

Feb-09

Mar-09
Social Networks

Apr-09

May-09
Gaming

Jun-09
# Deals

Jul-09

Aug-09

Sep-09
Virtual World

Oct-09

Nov-09
Video

Dec-09

Jan-10

Feb-10

Mar-10
Top 5 sectors average $175 mm & 16 deals per month (aggregate)

Apr-10

May-10

Jun-10

Jul-10
www.mackieresearch.com
 Top 10 (2010 YTD)
Financing Acquisitions

800.0 800

700.0
700.0 688.0 700
644.9

600
600.0

500
500.0

400
400.0

300
300.0 225.0
247.0
187.5
200 161.5 160.0
200.0 142.0 126.5
110.0 100.0
135.0 100
100.0 60.0 50.0 50.0 44.0 40.0 38.5 35.0 0

Ankeena Networks
Alloy
ITA Software

Turbine
infoGROUP

Exalead
ICQ

Woot
Jigsaw
Siri
0.0
Technologies

Zynga

LivingSocial
Groupon

Atlassian

Gilt Groupe
Glam Media

Tremor Media

Squarespace
Qiyi
Digital Sky

DST soars to top with almost $700 million in financing this year

30 www.mackieresearch.com
 Upcoming Events/Earnings
E arnings C alendar
Company Date / Time Quarter Conf Call Details
IAC/InterActiveCorp. (NasdaqGS:IACI) Jul-28-2010 11:00 AM Q2/10 NA
Shutterfly, Inc. (NasdaqGS:SFLY) Jul-28-2010 5:00 PM Q2/10 970-315-0490
Taleo Corp. (NasdaqGM:TLEO) Jul-28-2010 5:30 PM Q2/10 NA
Tree.Com, Inc. (NasdaqGM:TREE) Jul-29-2010 11:00 AM Q2/10 877-874-1588
RealNetw orks Inc. (NasdaqGS:RNWK) Jul-29-2010 5:00 PM Q2/10 800-857-5305
LookSmart, Ltd. (NasdaqGM:LOOK) 2-Aug-10 Q2/10 NA
Glu Mobile, Inc. (NasdaqGM:GLUU) Aug-03-2010 4:30 PM Q2/10 877-311-0653
Motricity, Inc. (NasdaqGM:MOTR) Aug-03-2010 5:00 PM Q2/10 1-877-941-8416
TheStreet.com, Inc. (NasdaqGM:TSCM) Aug-04-2010 5:00 PM Q2/10 866-730-5767
AOL, Inc. (NYSE:AOL) Aug-04-2010 8:00 AM Q2/10 866-362-4820
ValueClick, Inc. (NasdaqGS:VCLK) Aug-05-2010 4:30 PM Q2/10 818-575-4677
Openw ave Systems Inc. (NasdaqGS:OPWV) Aug-05-2010 5:00 PM Q4/10 877-941-2068
Giant Interactive Group, Inc. (NYSE:GA) Aug-09, 2010 9:00 PM Q2/10 1-866-356-3093
Open Text Corp. (NasdaqGS:OTEX) Aug-18-2010 5:00 PM Q4/10 416-644-3414
The9 Limited (NasdaqGS:NCTY) Aug-24-2010 9:00 PM Q2/10 1-866-788-0538

Source: CapitalIQ

31 www.mackieresearch.com
 Public Company Listing T rading C urre nt US $ Mark e t
C om pany Nam e T ick e r Exchange C ur re ncy HQ Price C ap (m m ) Em ploye e s
A ccelerize New M edia, Inc. ACLZ OTCBB USD United States 0.51 15.9 10
A ccredited M embers Holding Co rpo ratio n ACCM OTCBB USD United States 0.75 21.9 8
A cto z So ft Co ., Ltd. A052790 KOSE KRW So uth Ko rea 10,800 78.8 NA
A OL, Inc. AOL NYSE USD United States 21.09 2,250.7 6,700
A Q Interactive, Inc. 3838 TSE JP Y Japan 164,900 103.5 NA
A sknet AG XTRA :A 5A XTRA EUR Germany 2.90 19.0 NA
B eyo nd Co mmerce, Inc. BYOC OTCBB USD United States 0.08 5.3 16
CDC Co rp. CHIN.A NasdaqGS USD Ho ng Ko ng 2.07 218.6 2,810
Changyo u.co m Limited CYOU NasdaqGS USD China 26.60 1,371.7 1,308
Chinese Gamer Internatio nal GTSM :3083 GTSM TWD Taiwan 267.00 712.8 NA
Cyberplex Inc. TSX:CX TSX CA D Canada 0.61 42.0 NA
DA DA SpA CM :DA CM EUR Italy 4.56 95.9 597
Dena Co . Ltd. TSE:2432 TSE JP Y Japan 2,168 3,565.1 NA
DigitalPo st Interactive, Inc. DGLP OTCBB USD United States 0.05 6.8 6
DigitalTown, Inc. DGTW OTCBB USD United States 1.15 32.1 4
Do lphin Digital M edia, Inc. DP DM OTCBB USD United States 0.15 9.3 NA
En2Go International, Inc. ETGI OTCBB USD United States 0.08 1.9 NA
ePro Ltd. SEHK:8086 SEHK HKD Ho ng Ko ng 0.70 30.3 707
Fro gster Interactive P ictures A G FRG XTRA EUR Germany 24.70 10,661.3 NA
Gamania Digital Entertainment Co ., Ltd. 6180 GTSM TWD Taiwan 51.80 206.3 NA
GameOn Co Ltd. 3812 TSE JP Y Japan 68,700 0.3 NA
Geo Sentric Oyj GEO1V HLSE EUR Finland 0.03 2,059.3 130
Giant Interactive Gro up, Inc. GA NYSE USD China 6.99 1,588.0 1,575
GigaM edia Ltd. GIGM NasdaqGS USD Taiwan 2.20 121.7 NA
Glu M o bile, Inc. GLUU NasdaqGM USD United States 1.35 41.3 479
Gravity Co ., Ltd GRVY NasdaqGM USD So uth Ko rea 1.35 37.5 455
Gree, Inc. TSE:3632 TSE JP Y Japan 6,300 245.2 NA
GungHo Online Entertainment, Inc. 3765 OSE JP Y Japan 185,300 1,547.1 NA
HanbitSo ft, Inc. A047080 KOSE KRW So uth Ko rea 6,120 0.1 NA
HUGHES Telematics, Inc. HUTC OTCBB USD United States 2.50 84.3 276
Hutchison Teleco mmunicatio ns Ho ng Kong SEHK:21
Ho ldings
5 Ltd. SEHK HKD Ho ng Ko ng 1.73 322.5 1,732
IA C/InterActiveCo rp. IA CI NasdaqGS USD United States 22.61 2,507.1 3,200
IA S Energy, Inc. IA SC.A OTCPK USD Canada 0.05 3.5 NA
Internet Gro up SA WSE:IGR WSE P LN P o land 0.76 2.7 NA
iseemedia Inc. IEE TSXV CA D Canada 0.12 7.6 NA
Jumbuck Entertainment Limited ASX:JM B A SX A UD A ustralia 0.17 5.9 79
Kent Internatio nal Ho ldings Inc. KNTH OTCPK USD United States 1.90 6.8 NA

32 www.mackieresearch.com
 Public Company Listing cont.
T rading C urr e nt US $ Mark e t
C om pany Nam e T ick e r Exc hange C ur re nc y HQ Price C ap (m m ) Em ploye e s
Kingso ft Co rpo ratio n Limited 3888 SEHK HKD China 4.07 0.4 2,735
Kiwibo x.Co m, Inc. KIWB OTCB B USD United States 0.01 3.3 6
Lingo M edia Co rpo ratio n TSXV:LM TSXV CA D Canada 0.49 1.2 NA
LiveWo rld Inc. LVWD OTCP K USD United States 0.04 1.2 NA
Lo o kSmart, Ltd. LOOK NasdaqGM USD United States 1.50 25.7 65
M ixi, Inc. 2121 TSE JP Y Japan 423,500 0.0 NA
M o bile Data Co rp. M B YL OTCB B USD United States 0.06 1.4 NA
M o dern Times Gro up M tg A B M TG B OM SEK Sweden 442.00 5.4 2,936
M o ggle, Inc DB :M 0C DB EUR United States 0.85 12.3 2
M OKO.mo bi Limited M KB A SX A UD A ustralia 0.08 147.3 NA
M o o d M edia Co rpo ratio n TSX:M M TSX CA D Canada 1.61 60.0 NA
M o tricity, Inc. M OTR NasdaqGM USD United States 8.49 337.4 355
M ultiplied M edia Co rpo ratio n TSXV:M M C TSXV CA D Canada 0.11 27.7 NA
M yriad Gro up A G M YRN SWX CHF Switzerland 4.30 198.6 778
NEOWIZ Games Co rpo ratio n A 095660 KOSE KRW So uth Ko rea 36,900 640.1 NA
NetDrago n WebSo ft, Inc. 777 SEHK HKD China 3.58 242.3 2,901
Netease.co m Inc. NTES NasdaqGS USD China 33.53 4,351.0 4,624
NeuLio n Inco rpo rated TSX:NLN TSX CA D Canada 0.47 52.1 224
NeXplo re Co rpo ratio n NXP C OTCP K USD United States 0.45 25.1 NA
Ngi Gro up Inc. 2497 TSE JP Y Japan 30,400 45.1 NA
No rthgate Techno lo gies Limited 590057 B SE INR India 16.05 11.9 NA
OA O RB C Info rmatio n Systems RB CI M ICEX RUB Russia 33.90 150.1 2,523
Open Text Co rp. OTEX NasdaqGS USD Canada 39.72 2,255.3 3,700
Openwave Systems Inc. OP WV NasdaqGS USD United States 1.96 164.4 590
Oriented M edia Gro up B erhad OM EDIA KLSE M YR M alaysia 0.07 2.7 NA
P aid Inc. P A YD OTCB B USD United States 0.24 65.1 20
P erfect Wo rld Co ., Ltd. P WRD NasdaqGS USD China 23.95 1,199.0 2,896
P latfo rma M edio wa P o int Gro up S.A . WSE:P GM WSE P LN P o land 1.47 47.9 NA
P NI Digital M edia Inc. TSXV:P N TSXV CA D Canada 1.41 45.8 NA
P o ints Internatio nal Ltd. TSX:P TS TSX CA D Canada 0.70 99.5 93
Quepasa Co rp. QP SA OTCB B USD United States 3.75 48.6 71
RealNetwo rks Inc. RNWK NasdaqGS USD United States 3.42 462.6 1,754
Sco re M edia Inc. TSX:SCR TSX CA D Canada 0.91 70.1 220
Shanda Interactive Entertainment Ltd. SNDA NasdaqGS USD China 38.98 2,314.6 5,721
Shutterfly, Inc. SFLY NasdaqGS USD United States 23.80 639.1 519
SK Co mmunicatio ns Co ., Ltd. A 066270 KOSE KRW So uth Ko rea 19,250 652.3 NA
33 www.mackieresearch.com
 Public Company Listing cont.
T rading C ur re nt US $ Mar k e t
C om pany Nam e T ick e r Exc hange C ur re ncy HQ Pr ice C ap (m m ) Em ploye e s
SNA P Interactive, Inc. STVI OTCB B USD United States 0.17 5.6 15
So cialGO P LC A IM :SGO A IM GB P United Kingdo m 0.01 5.6 9
So cialwise, Inc. SCLW OTCB B USD United States 0.46 22.9 NA
So hu.co m Inc. SOHU NasdaqGS USD China 42.13 1,593.3 3,997
Spark Netwo rks, Inc. LOV A M EX USD United States 3.19 65.7 155
SpectrumDNA , Inc. SP XA OTCB B USD United States 0.07 4.8 8
Taleo Co rp. TLEO NasdaqGM USD United States 24.62 978.9 916
Tencent Ho ldings Ltd. 700 SEHK HKD China 139.60 32,832.1 7,845
The New Yo rk Times Co mpany NYT NYSE USD United States 8.88 1,292.9 7,665
The9 Limited NCTY NasdaqGS USD China 4.28 109.2 1,010
TheStreet.co m, Inc. TSCM NasdaqGM USD United States 2.75 86.8 274
TransGaming, Inc. TSXV:TNG TSXV CA D Canada 0.49 27.6 28
Tree.Co m, Inc. TREE NasdaqGM USD United States 7.16 80.2 700
Unilava Co rpo ratio n UNLA OTCB B USD United States 0.06 6.0 40
Uniserve Co mmunicatio ns Co rp. TSXV:USS TSXV CA D Canada 0.11 3.0 NA
United Online, Inc. UNTD NasdaqGS USD United States 5.94 517.6 1,699
UOM O M edia, Inc UOM O OTCB B USD Canada 0.02 1.4 NA
ValueClick, Inc. VCLK NasdaqGS USD United States 10.95 890.5 1,086
Velti P lc VEL A IM GB P United Kingdo m 4.09 233.7 459
VOIS, Inc. VOIS OTCB B USD United States 0.01 18.0 2
WebM ediaB rands Inc WEB M NasdaqGS USD United States 0.72 27.0 83
Webzen Inc. KOSE:A 069080 KOSE KRW So uth Ko rea 10,450 101.9 326
Wizzard So ftware Co rpo ratio n WZE A M EX USD United States 0.20 13.2 80
Wo rlds.co m Inc. WDDD OTCB B USD United States 0.10 5.7 1
XING A G O1B C XTRA EUR Germany 28.40 190.0 293
YD Online Co rp. A 052770 KOSE KRW So uth Ko rea 4,150 51.2 NA
Yippy, Inc. YIP I OTCB B USD United States 2.23 50.6 NA
Ynk Ko rea Inc. A 023770 KOSE KRW So uth Ko rea 2,805 18.4 NA
Yo uB last Glo bal, Inc. YB LT OTCB B USD United States 0.39 13.4 6

34 www.mackieresearch.com
 Disclaimer
RELEVANT DISCLOSURES APPLICABLE TO: NONE

1. None applicable.

ANALYST CERTIFICATION
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.

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.
Information about Mackie Research Capital Corporation’s Rating System, the distribution of our research to clients and the percentage of recommendations which are in each of our rating categories
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Corporation assume any responsibility or liability. Mackie Research Capital Corporation, its directors, officers and other employees may, from time to time, have positions in the securities mentioned
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35 www.mackieresearch.com