SOFTWARE & SERVICES 3 NOVEMBER 2009

DAVID SHORE, CFA, MBA 416.860.6784

WEB 2.O WEEKLY david.shore@researchcapital.com
Damian Wojcichowsky, CFA (Associate), 416.860.7652

YOUR GPS SYSTEM IS OBSOLETE ALREADY…

GO OGL E P RO V ID E S F R E E V OI C E- B A S ED T UR N- B Y- T UR N D RI VI NG D IR E CT IO NS
Google Maps and Google Streetview are among the most popular applications in the Google stable. Layered on to
these, Google has recently announced, will be free audio turn-by-turn navigation directions included with every
Android mobile OS shipped. This free innovation is made possible courtesy of the army of automobiles prowling the
world’s city streets building Google’s proprietary mapping database (at considerable cost to Google, no doubt).

DO OM F O R T O MT O M, GA RMI N
Not unexpectedly, the share prices of the proprietary (and non-free product vending) GPS device makers, TomTom
and Garmin, plummeted on the news of Google’s latest application. Observe the latest 10-day stock charts for the two
GPS device makers.

AN D ROI D A T H R EA T T O P RO P RI ET AR Y P L AT F O R MS , SU C H A S A PP L E A N D BL A C KB E R RY
This Google development threatens the two leading smartphone players, Apple and BlackBerry. Since both of these
companies must purchase their own mapping data to offer a similar service, they are faced with the choice of taking a
hit to margins or shipping their smartphones without free navigation.

AN D ROI D ST E A DIL Y S IN KI NG IT S HO O KS I NT O T H E M OB IL E M A RK ET
The possibilities for disruption in the mobile device space on the part of Google and its ad-based revenue model are
beginning to come to light with every new, free application press release. Though Android-equipped phones have not
made the same kind of splash as the iPhone nor have they the user-base loyalty of the BlackBerry, we expect that
developments along the lines of Google’s latest will continue to bring the Android phone segment into the forefront.

CAPITAL MARKETS ACTIVITY SLOWS DOWN AS OCTOBER WINDS UP

October finishes limping: Total transaction value in the W eb 2.0 universe for October is $170.8 (vs. $151.2 million
at time of last publication). The month ended with 26 financings in the sector averaging $6.6 million each (vs. an
average of $7.6 million last week). In comparison, total capital raised in September was $232.8 million, averaging
$9.0 million (26 deals); August was $221.6 million, averaging $7.6 million (29 deals); and July (35 deals) $191.4
million, averaging $5.5 million.

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

Eighty-nine public Web 2.0 companies: Our W eb 2.0 universe contains 89 companies, with a combined market cap of
approximately $69 billion (Figure 1). The median market cap for the group is $41.8 million, with average trailing revenue
of $162 million (median $57 million). The companies are also generally profitable with a median EBITDA margin of 12.6%.
On a valuation basis, the overall average is 5.2x trailing revenue (median 1.7x) and 10.2x trailing EBITDA (median 7.6x).
Twenty of the companies have more than 500 employees.
C omparable C ompany Analys is > Web 2.0
Trading C urrent US D Market US D L TM Total US D L TM Total E B ITDA TE V/L TM TE V/L TM
C ompany Name L TM as of Ticker E xc hange C urrency HQ P rice C ap ($m) R ev ($m) E B ITDA ($m) % R evenue E B ITDA E mployees
Accelerize New Media , Inc. 6/30/2009 AC LZ OT C B B US D United S ta tes 0. 55 15. 4 4. 4 (3.7) -83. 3% 4. 6x - 11
Actoz S oft C o. , Ltd. 6/30/2009 A052790 K OS E KR W S outh K orea 14,500 105. 2 108.7 25. 9 23. 8% 0. 7x 2. 8x NA
AQ Interactive, Inc. 6/30/2009 3838 TS E JPY J a pan 46,800 28. 5 66. 1 (2.0) -2.9% 0. 1x - NA
As s ociated Media Holdings Inc. 6/30/2007 AS MH OT C P K US D United S ta tes 0. 01 0.4 0. 1 (2.3) NM 12.6x - 3
B igs tring C orp. 6/30/2009 BS GC OT C B B US D United S ta tes 0. 03 2.0 0. 1 (1.5) NM 49.2x - 4
B eta wave C orporation 6/30/2009 B W AV OT C B B US D United S ta tes 0. 03 0.9 9. 4 (12. 6) NM - - 51
B eyond C ommerce, Inc. 6/30/2009 B Y OC OT C B B US D United S ta tes 0. 08 4.2 11. 7 (12. 8) NM 0. 9x - 101
B right T hings plc 3/31/2009 AIM: B G T AIM GBP United K ingdom 0. 01 5.9 0. 0 (2.7) NM - - NA
B roa dW ebAs ia Inc. 9/30/2008 BWBA OT C P K US D United S ta tes 0. 03 2.5 0. 0 (4.6) NM - - 46
C DC C orp. 6/30/2009 C HIN. A Na s daqG S US D Hong K ong 2. 35 249. 1 361.6 25. 1 6.9% 0. 7x 9. 7x 2, 227
C hangyou. com L imited 9/30/2009 C Y OU Na s daqG S US D C hina 30. 35 1,669. 3 255.3 157.4 61. 7% 5. 3x 8. 6x 628
C hina G a teway C orporation 9/30/2008 CGWY OT C P K US D United S ta tes 0. 00 0.0 6. 7 (6.6) -98. 9% 0. 0x - 37
C hines e G amer Interna tiona l 6/30/2009 G T S M: 3083 GTS M TWD T aiwa n 426 1,104. 8 61. 6 34. 7 56. 3% 16.8x 29. 8x NA
C LIC K E R Inc. 5/31/2009 C LK Z OT C B B US D United S ta tes 0. 01 0.7 2. 5 (1.2) -45. 8% 0. 3x - 22
C ornerW orld C orpora tion 7/31/2009 CWR L OT C B B US D United S ta tes 0. 06 5.7 6. 8 NM NM 2. 4x - 16
C yberplex Inc. 6/30/2009 T S X :C X TS X C AD C anada 1 83. 6 89. 8 9.7 10. 8% 0. 7x 6. 6x NA
DADA S pA 6/30/2009 C M: DA CM E UR Italy 7. 07 167. 7 241.9 31. 8 13. 1% 0. 9x 6. 8x NA
DXN Holdings B hd 5/31/2009 DX N K LS E MY R Ma la ys ia 0. 64 41. 6 77. 1 11. 1 14. 4% 0. 7x 5. 1x NA
Dibz International, Inc. NA DIB Z OT C P K US D United S ta tes 0. 00 0.0 NA NM NM - - NA
DigitalP os t Interactive, Inc. 6/30/2009 DG LP OT C B B US D United S ta tes 0. 05 3.9 1. 0 (1.4) NM 5. 9x - 7
DigitalT own, Inc. 8/31/2009 DG T W OT C B B US D United S ta tes 1. 01 27. 6 0. 0 (1.8) NM - - 3
Dolphin Digital Media , Inc. 6/30/2009 DP DM OT C B B US D United S ta tes 0. 40 21. 5 0. 6 (3.4) NM 38.6x - NA
E olith C o. Ltd. 12/31/2008 A041060 K OS E KR W S outh K orea 530 32. 2 15. 4 (3.6) -23. 6% 2. 2x - NA
E xtens ions , Inc. 6/30/2009 E XT I OT C P K US D United S ta tes 0. 40 17. 8 NM NM NM - - 2
F luid Mus ic C a nada , Inc. 6/30/2009 T S X :F MN TS X C AD United S ta tes 1. 79 86. 4 5. 3 (5.1) -95. 2% 15.3x - NA
F rogs ter Interactive P ictures AG 6/30/2009 FRG XT R A E UR G ermany 19. 05 71. 5 9. 6 (4.5) -47. 0% 7. 3x - NA
G ama nia Digita l E ntertainment C o., Ltd. 6/30/2009 6180 GTS M TWD T aiwa n 44. 80 209. 8 140.6 25. 1 17. 9% 1. 3x 7. 4x NA
G ameOn C o Ltd. 6/30/2009 3812 TS E JPY J a pan 85,200 92. 1 81. 9 20. 1 24. 5% 0. 2x 0. 9x NA
G eoS entric O yj 6/30/2009 G E O 1V HL S E E UR F inland 0. 05 65. 8 5. 4 (17. 4) NM 12.1x - 115
G iant Interactive G roup, Inc. 6/30/2009 GA NY S E US D C hina 7 1,644. 0 198.5 124.1 62. 5% - - 1, 570
G iga Media Ltd. 3/31/2009 G IG M Na s daqG S US D T aiwa n 3. 98 217. 0 183.6 NM NM 0. 8x - 751
G ravity C o., Ltd 6/30/2009 GR VY Na s daqG M US D S outh K orea 1. 57 43. 6 49. 1 16. 6 33. 9% - - 469
G ree, Inc. 6/30/2009 T S E : 3632 TS E JPY J a pan 5,090 2,548. 3 156.0 93. 7 60. 1% 15.6x 25. 9x NA
G ungHo O nline E ntertainment, Inc. 6/30/2009 3765 OS E JPY J a pan 211,500 271. 0 119.5 26. 6 22. 2% 2. 0x 8. 9x NA
HanbitS oft, Inc. 6/30/2009 A047080 K OS E KR W S outh K orea 3,420 62. 8 60. 7 1.4 2.3% 0. 8x 34. 8x NA
IAC /InterActiveC orp. 9/30/2009 IAC I Na s daqG S US D United S ta tes 19. 02 2,510. 1 1, 359. 6 82. 4 6.1% 0. 6x 10. 5x 3, 200
IAS E nergy, Inc. 4/30/2009 IAS A. E OT C B B US D C anada 0. 12 8.5 0. 0 (0.6) NM - - NA
is eemedia Inc. 3/31/2009 IE E T S XV C AD C anada 0. 15 6.8 1. 6 (5.0) NM 3. 7x - NA
J umbuck E nterta inment Limited 6/30/2009 AS X :J MB AS X AUD Aus tralia 0. 34 14. 5 16. 7 7.2 42. 8% 0. 5x 1. 1x 79
K AB Dis tribution Inc. 6/30/2009 T S X :K AB TS X C AD C anada 0 0.6 67. 9 4.0 5.8% - - NA
K ings oft C o. Ltd. 6/30/2009 3888 S E HK HK D C hina 8 1,058. 1 139.1 61. 4 44. 2% 7. 6x 17. 2x 2, 463
Lingo Media C orporation 6/30/2009 T S X V :LM T S XV C AD C anada 0. 95 10. 9 1. 2 (1.9) NM 8. 3x - NA
LiveW orld Inc. 6/30/2009 LVW D OT C P K US D United S ta tes 0. 04 1.2 10. 6 (0.1) -1.2% 0. 0x - NA
LookS mart, Ltd. 6/30/2009 L OO K Na s daqG M US D United S ta tes 1. 29 22. 1 56. 8 (4.4) -7.8% - - 90
Magnitude Information S ys tems Inc. 6/30/2009 MAG Y OT C B B US D United S ta tes 0. 01 5.4 0. 1 (2.5) NM - - 14
Mixi, Inc. 6/30/2009 2121 TS E JPY J a pan 781000. 00 1,345. 8 136.8 46. 2 33. 8% 9. 0x 26. 5x NA
Modern T imes G roup Mtg AB 9/30/2009 MT G B OM SEK S weden 307. 10 2,906. 3 2, 002. 6 282.9 14. 1% 1. 7x 12. 2x 2, 969
MO K O .mobi Limited 6/30/2009 MK B AS X AUD Aus tralia 0. 09 8.3 0. 7 (2.4) NM 10.6x - NA
Myriad G roup AG 6/30/2009 MY R N SWX C HF S witzerland 4. 89 209. 7 63. 0 3.4 5.4% 3. 3x - 405
NE O W IZ G ames C orpora tion 12/31/2008 A095660 K OS E KR W S outh K orea 38600. 00 681. 9 207.3 55. 7 26. 8% 3. 2x 12. 1x NA
NetDragon W ebS oft, Inc. 6/30/2009 777 S E HK HK D C hina 5 326. 7 89. 3 25. 7 28. 7% 2. 0x 7. 0x 3, 109
Neteas e. com Inc. 6/30/2009 NT E S Na s daqG S US D C hina 37. 69 4,878. 1 472.4 297.4 63. 0% - - 3, 109
NeuLion Incorporated 6/30/2009 T S X :NLN TS X C AD C anada 0. 70 71. 1 21. 5 (13. 0) -60. 3% 2. 8x - 237
NeXplore C orporation 6/30/2009 NX P C OT C P K US D United S ta tes 1 41. 8 1. 7 (13. 3) NM 27.0x - NA
Ngi G roup Inc. 6/30/2009 2497 TS E JPY J a pan 27550. 00 38. 2 93. 0 6.9 7.4% - - NA
Northgate T echnologies L imited 6/30/2009 590057 BSE INR India 29. 30 21. 3 82. 9 (41. 5) -50. 0% 0. 3x - NA
O pen T ext C orp. 9/30/2009 OT E X Na s daqG S US D C anada 36. 93 2,082. 2 814.5 211.1 25. 9% 2. 6x 10. 2x 3, 411
O penwave S ys tems Inc. 9/30/2009 OP W V Na s daqG S US D United S ta tes 2. 06 172. 0 190.5 5.6 3.0% 0. 4x 11. 9x 590
P erfect W orld C o. , Ltd. 6/30/2009 PWRD Na s daqG S US D C hina 43. 24 2,178. 9 255.6 142.2 55. 6% 0. 7x 1. 2x 2, 096
P NI Digital Media Inc. 6/30/2009 T S X V :P N T S XV C AD C anada 1. 80 56. 6 21. 0 2.3 11. 0% 2. 6x 23. 6x NA
Q uepa s a C orp. 6/30/2009 QP S A OT C B B US D United S ta tes 1 15. 3 0. 2 (10. 6) NM - - 74
O AO R B C Information S ys tems 12/31/2007 R BCI R TS US D R us s ia 1. 60 222. 0 157.4 20. 6 13. 1% 0. 0x 0. 4x NA
S handa Interactive E nterta inment Ltd. 6/30/2009 S NDA Na s daqG S US D C hina 45. 20 3,039. 9 629.0 296.7 47. 2% - - 3, 124
S hutterfly, Inc. 9/30/2009 S FLY Na s daqG S US D United S ta tes 14. 24 365. 3 223.1 28. 2 12. 6% 1. 1x 9. 0x 514
S K C ommunications C o., Ltd. 12/31/2008 A066270 K OS E KR W S outh K orea 7050. 00 247. 4 192.7 12. 5 6.5% 1. 3x 19. 7x NA
S NAP Interactive, Inc. 6/30/2009 S TVI OT C B B US D United S ta tes 0 2.3 3. 5 0.9 27. 0% 0. 2x 0. 7x 11
S NM G loba l Holdings 9/30/2008 S NMN OT C P K US D United S ta tes 0. 00 0.0 2. 0 (0.7) -34. 8% 1. 1x - 33
S ocial Media V entures Inc. 12/31/2008 S MV I OT C P K US D United S ta tes 0 0.0 0. 1 (0.1) -60. 6% 4. 5x - NA
S ocialwis e, Inc. 6/30/2009 S C LW OT C B B US D United S ta tes 0. 50 22. 1 0. 0 (5.6) NM - - NA
S ohu. com Inc. 9/30/2009 S O HU Na s daqG S US D C hina 54. 07 2,072. 7 501.0 218.5 43. 6% 3. 1x 7. 0x 3, 197
S park Networks , Inc. 6/30/2009 L OV AME X US D United S ta tes 3 59. 3 50. 5 10. 8 21. 3% 1. 1x 5. 3x 183
S pectrumDNA, Inc. 6/30/2009 S P XA OT C B B US D United S ta tes 0 7.3 0. 1 (2.5) NM - - 7
T encent Holdings Ltd. 6/30/2009 700 S E HK HK D C hina 143 33, 542.7 1, 391. 6 680.3 48. 9% 26.6x - 6, 421
T he P arent C ompany 8/2/2008 K IDS . Q OT C P K US D United S ta tes 0. 01 0.2 112.0 (13. 5) -12. 0% 0. 2x - 347
T he9 Limited 12/31/2008 NC T Y Na s daqG S US D C hina 7. 82 196. 2 250.6 85. 5 34. 1% - - 1, 626
T heS treet. com, Inc. 3/31/2009 TS CM Na s daqG M US D United S ta tes 2. 41 73. 8 67. 0 1.9 2.9% 0. 1x 4. 7x 310
T ree.C om, Inc. 6/30/2009 TR E E Na s daqG M US D United S ta tes 8. 05 87. 7 216.6 (0.7) -0.3% 0. 4x - 700
Unis erve C ommunica tions C orp. 5/31/2009 T S X V :US S T S XV C AD C anada 0. 05 1.1 17. 1 (0.2) -1.0% 0. 2x - NA
United O nline Inc. 6/30/2009 UNT D Na s daqG S US D United S ta tes 7. 86 659. 0 949.8 203.2 21. 4% 1. 0x 4. 5x 1, 469
UOMO Media, Inc 7/31/2009 UO MO OT C B B US D C anada 0 6.6 0. 8 (0.4) -54. 2% 8. 9x - NA
V alueC lick Inc. 9/30/2009 V C LK Na s daqG S US D United S ta tes 9 802. 7 545.7 130.8 24. 0% 1. 2x 4. 9x 1, 189
V OIS , Inc. 6/30/2009 V O IS OT C B B US D United S ta tes 0 3.3 0. 0 (1.0) NM - - 4
W ebzen Inc. 6/30/2009 W ZE N Na s daqG M US D S outh K orea 3. 03 35. 9 23. 2 2.3 9.9% - - 328
W izzard S oftwa re C orporation 6/30/2009 W ZE AME X US D United S ta tes 0. 43 21. 7 5. 3 (4.5) -84. 9% 4. 3x - 110
W orlds . com Inc. 6/30/2009 W DDD OT C B B US D United S ta tes 0. 10 5.2 0. 1 (0.7) NM - - 1
W ynds torm C orpora tion NA W Y ND OT C P K US D United S ta tes 0. 10 1.8 NA NM NM - - NA
XING AG 6/30/2009 O 1B C XT R A E UR G ermany 34. 88 269. 3 58. 9 17. 0 28. 8% 3. 7x 12. 8x 246
Y D O nline C orp. 12/31/2007 A052770 K OS E KR W S outh K orea 6810. 00 85. 6 57. 4 12. 4 21. 6% 1. 6x 7. 6x NA
Y nk K orea Inc. 12/31/2008 A023770 K OS E KR W S outh K orea 3900. 00 17. 4 11. 9 1.3 10. 5% - - NA
High 33, 542.7 2,002. 6 680. 3 63. 0% 49.2x 34. 8x 6, 421
Low 0.0 0. 0 -41.5 -98. 9% - - 1
Average 780.0 161.7 39.9 6.2% 5.2x 10.2x 936
Median 41. 8 57.1 1. 7 12. 6% 1. 7x 7. 6x 246

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 )
October finishes limping: Total transaction value in the W eb 2.0 universe for October is $170.8 (vs. $151.2 million at
time of last publication). The month ended with 26 financings in the sector averaging $6.6 million each (vs. an average of
$7.6 million last week). In comparison, total capital raised in September was $232.8 million, averaging $9.0 million (26
deals); August was $221.6 million, averaging $7.6 million (29 deals); and July (35 deals) $191.4 million, averaging $5.5
million.

Financing Activity Last Twelve Months

400.0 16.0

14.6

350.0 14.0

300.0 12.0

9.7
250.0 10.0
9.0
(US$m)

(US$m)
200.0 7.6 8.0
7.0 7.0 7.1
6.5 6.6 6.6
6.2
150.0 5.5 6.0
4.9

100.0 4.0

50.0 2.0

0.0 0.0
Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09

*May-09 includes $200m FB investment Total Average

Figure 2. Financings, Last Twelve Months

Source. Company reports
 Page 4

Deal round-up for October end: The large deal highlights for the month include:

• DailyMotion – a French online video content provider – raised $25.3 million through a Series C financing.

• Yext – an online directory provider – raised $25 million.

• PopCap Games – a developer of casual games played on multiple types of devices – raised $22.5 million in its first
round of funding.

• Engine Yard – provider of managed hosting and deployment solutions for Ruby and Rails applications – raised $19
million in a Series C financing.

• Ecast Network – operator of a broadband touch screen network in the U.S. – raised $17 million in a follow-on
unattributed financing.

• HubSpot – provider of online enterprise marketing application – received $16 million in Series C financing.

• Jive Software – maker of enterprise collaboration and social community software – raised $12 million in a Series B
financing by returning VC fund, Sequoia.

All other deals in the month were in the amount of $10 million or less. For additional details on financings, see Figures 23
and 24 (at end of note).

Financing & M/A Summary - Last Three Months

200.0

180.0

160.0

140.0

120.0
Nov-09
(US$m)

Oct-09
100.0
Sep-09
Aug-09
80.0

60.0

40.0

20.0

0.0
DailyMotion

Jive Software

MediaMath
Mzinga
InXpo

NextBio

Reality Mobile
HiveLive
Boxee

Polyvore

Fwix
Yext

Box.net

RightsFlow
Skype

Zoove
RichRelevance

Ooyala

Edo Interactive
Jobvite

InnoCentive

Booyah
YuMe

Z2Live

Overtone

Greystripe

DailyBooth

iSyndica

OnLive
Aviary

Mocapay

Vantrix
Fizzback

Roblox

Linkedex
Twitter

Dopplr

MOG

Unisfair

Fluther
Scoopler
Mint
Turbine
Friends Reunited

Ensequence
iLike
Engine Yard

Traffiq

CubeTree

Balihoo

Vuclip

Fanbase

Vdopia

NeoEdge
Alliance Health

ViVu

OurStage
Scoreloop

Godengo
Tremor Media

Plista
FourSquare
Onehub
EduFire
ChessCube

Hot Potato

IngBoo
Chango

Listia
NowPublic

Ecast Network
Livebookings

Scout Labs

Conduit Labs

MashLogic

Tiny Pictures

DataSync

Linksify

Gigpark
Smith & Tinker

VEVO
HubSpot

Spigit

ScanScout

OneRiot

iSocket

StatusNet

Aurora Feint
KODA

Technorati
Loomia

TransGaming
PopCap Games

Riot Games

Sometrics
FeedRoom

Bill.com

Amie Street
Imeem

Gamelab.com
Watercooler

Figure 3. Capital Market Activity, Last Three Months

Source. Company reports
 Page 5

Social Networks the most active sector: Social Networks experienced the most financing activity among our W eb 2.0
sector categories in the past three months by number of transactions (12). Advertising continues to be among the highest
activity sectors with 11 deals in the past quarter. Gaming follows with nine transactions followed by Collaboration (7)
(Figure 4). The $2.0 billion acquisition of Skype skews the dollars transacted to the SMS/Voice segment, while the $170
million acquisition of Mint brings the Vertical Communities segment to the second highest total.

Capital Market Activity by Sector - Last Three Months

200.0

180.0

160.0

140.0

120.0
(US$m)

100.0

80.0

60.0

40.0

20.0

2,025.0 192.3 122.0 100.9 97.4 70.3 70.3 46.0 37.5 37.9 35.5 34.0 26.1 17.1 15.8 14.0 13.2 13.0 11.5 3.9 3.6 2.2 2.0 1.3
0.0

Comment/Reputation

Social Commerce
Communities

Gaming

Microblog

Collaboration

Enterprise

Mobile

Media

Publishing

Online Learning
Music
SMS/Voice

Infrastructure

Search

Advertising/Mobile

Mobile Ad
Social Networks

Advertising

Video

Crowdsourced

Virtual World

Aggregation
Analytics
Vertical

Content

# companies
1 3 9 2 12 11 6 4 7 4 5 4 4 3 5 2 1 2 4 1 2 1 1 1

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

Source. Company reports
 Page 6

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 continues to outpace NASDAQ recovery: Our W eb 2.0 index (market-cap weighted) essentially mirrored
the performance of the NASDAQ composite index from mid-2008 until Q1/09. Since then, the index has diverged in a much
stronger recovery relative to the NASDAQ index (Figure 5).

Web 2.0 Index Price Performance

250

200

150

100

50

0
11/3/2008

11/17/2008

12/1/2008

12/15/2008

12/29/2008

1/12/2009

1/26/2009

2/9/2009

2/23/2009

3/9/2009

3/23/2009

4/6/2009

4/20/2009

5/4/2009

5/18/2009

6/1/2009

6/15/2009

6/29/2009

7/13/2009

7/27/2009

8/10/2009

8/24/2009

9/7/2009

9/21/2009

10/5/2009

10/19/2009

11/2/2009
Index: Web 2.0 (Market Cap) ^COMP - Share Pricing

Figure 5. Web 2.0 Price Performance

Source. Capital IQ
 Page 7

Broad-based price declines: Eight companies in our universe had positive stock price performances over the past week
(for stocks with prices greater than $1) (Figure 6), while 38 companies showed negative 1-week returns.

1 Week P rice P erformance

S park Netw orks , Inc. 12.5%
Webz en Inc. 9.5%
My riad Group A G 8.9%
Y nk K orea Inc. 6.6%
PNI Digital Media Inc. 6.5%
Mix i, Inc. 6.0%
G ree, Inc. 1.0%
Neteas e.com Inc. 0.7%
OA O R B C Information S y s tems 0.0%
K ings of t Co. Ltd. 0.0%
Cy berplex Inc. 0.0%
Chines e Gamer International -0.5%
Fluid Mus ic Canada , Inc. -0.6%
Tree.Com, Inc. -0.9%
LookS mart, Ltd. -1.5%
IA C/InterA ctiveCorp. -1.7%
XING A G -1.9%
The9 Limited -2.9%
S handa Interactive Entertainment Ltd. -3.0%
G ravity Co., Ltd -3.1%
A Q Interactiv e, Inc. -3.3%
S hutterf ly , Inc. -3.3%
G ameOn Co Ltd. -3.6%
Tencent Holdings Ltd. -3.8%
United Online Inc. -3.9%
HanbitS of t, Inc. -3.9%
Giant Interactive G roup, Inc. -4.0%
Y D Online Corp. -4.2%
Frogs ter Interactiv e Pictures A G -4.3%
NEOWIZ Games Corporation -4.7%
CDC Corp. -4.9%
DA DA S pA -5.4%
Perfect World Co., Ltd. -5.7%
Modern Times G roup Mtg A B -5.7%
Changy ou.com Limited -6.0%
Open Tex t Corp. -6.3%
NetDragon WebS of t, Inc. -6.6%
V alueClick Inc. -7.1%
Eolith Co. Ltd. -7.8%
Gamania Digital Entertainment Co., -8.3%
Ngi G roup Inc. -9.1%
S K Communications Co., Ltd. -9.6%
S ohu.com Inc. -9.8%
A ctoz S of t Co., Ltd. -11.0%
Quepas a Corp. -11.1%
G igaMedia Ltd. -11.9%
TheS treet.com, Inc. -13.3%
Openw ave S y s tems Inc. -24.0%
DigitalTow n, Inc. -49.5%
-0.6 -0.5 -0.4 -0.3 -0.2 -0.1 0 0.1 0.2

Figure 6. 1-Week Price Performance

Source. Capital IQ

P U B L I C C O M P A N Y I N D U S T R Y N E W S (P A R T N E R S H I P S , F I N A N C I A L R E S U L T S , N E W P R O D U C T S )
K ey Developments
C ompany
S ohu.com Inc. (Nas daqGS : S OHU)
C hangyou.com L imited
(Nas daqG S :C YOU)
S ohu.com Inc. (Nas daqGS : S OHU)
Quepas a C orp. (OTC B B : QP S A)
IAC /InterActiveC orp. (Nas daqG S : IAC I)
Open Text C orp. (Nas daqG S : OTE X)
IAC /InterActiveC orp. (Nas daqG S : IAC I)
S ocial Media Ventures Inc.
(OTC P K : S MVI)
Figure 7a. Key Developments
Source. Capital IQ
Headline
Q uarterly Update to S ohu.com, Inc. ’s E quity B uyback on O n O ctober 26, 2009, S ohu. com, Inc. announced that during the qua rter ending S eptember 30, 2009, it has ma de no
O ctober 26, 2009 repurcha s es under the program. As of S eptember 30, 2009, S ohu has repurcha s ed 501,686 s ha res a t an avera ge price of
$39.86 for a tota l cons ideration of $20 million under the program.
C ha ngyou. com L imited R eports Unaudited C ons olidated
E arnings R es ults for the T hird Q ua rter a nd Nine Months
E nded S eptember 30, 2009; P rovides E arnings
G uidance for the F ourth Q ua rter of 2009
S ohu.com Inc. R eports Unaudited C ons olida ted
E arnings R es ults for the T hird Q ua rter a nd Nine Months
E nded S eptember 30, 2009; P rovides E arnings
G uidance for the F ourth Q ua rter of 2009
Q uepas a La unches Developer Interface and O pen
S ocial S a ndbox
Update to IAC /InterActiveC orp’s E quity B uyback
O pen T ext C orp. announces an E quity B uyback
IAC /InterActiveC orp. R eports Unaudited C ons olida ted
E arnings R es ults for the T hird Q ua rter a nd Nine Months
E nded S eptember 30, 2009
S ocial Media V entures Inc. S igns Marketing Agreement
with P ets criptions . com
Page 8
Notes
C hangyou. com Limited reported unaudited cons olidated earnings res ults for the third quarter and nine months ended
S eptember 30, 2009. F or the qua rter, the company's total revenues were $68, 684, 000 a gains t $54,604,000 a year ago. T he
increas es were mainly due to increas ed popula rity of the company's flags hip game, T L B B . O perating profit wa s
$42,288, 000 agains t $32, 474,000 a year ago. Income before income ta x expens e wa s $43, 288,000 aga ins t $32,791, 000 a
yea r ago. Net income was $37,794,000 agains t $32, 084, 000 a year a go. Diluted net income per ADS wa s $0.71 a gains t
$0. 68 a year ago. Non-G AAP opera ting profit was $45,842, 000 a gains t $33, 725,000 a yea r ago. Non-G AAP net income
was $41, 348, 000 a gains t $33, 335,000 a yea r ago. Non-G AAP diluted net income per ADS was $0. 77 agains t $0.70 a year
ago. O perating cas h flow was a net inflow of $46. 2 million.
T he compa ny es timates tota l revenues for the fourth qua rter of 2009 to be between $69.0 million and $71. 0 million. Non-
G AAP net income for the fourth quarter of 2009 to be between $41. 5 million and $42.5 million. Non-G AAP fully diluted
earnings per ADS for the fourth quarter of 2009 to be between $0. 78 and $0.80.
S ohu.com Inc. reported unaudited cons olida ted earnings res ults for the third qua rter a nd nine months ended S eptember 30,
2009. F or the quarter, the compa ny reported net income a ttributable to company of $37,354, 000 or $0. 88 per s hare on tota l
revenue of $136, 585,000 aga ins t net income a ttributa ble to company was $40,261, 000 or $1. 02 per s ha re on total revenue
of $120, 676,000 in the s ame period of las t year. O pera ting profit was $52,953, 000 agains t $43, 758,000 in the s ame period
of las t year. Income before income tax expens e was $54,102, 000 a gains t $45, 230,000 in the s ame period of las t year.
Income from continuing operations was $47, 080, 000 a gains t $40, 238,000 in the s a me period of las t yea r. As per non-
G AAP , net income attributable to company was $40,921, 000 or $0. 96 per s hare on tota l revenue of $136,585, 000 agains t
net income attributable to company was $42,822, 000 or $1. 08 per s hare on tota l revenue of $120,676, 000 in the s a me
period of las t year. As per non-G AAP , operating profit was $57, 077,000 agains t $46,319, 000 in the s a me period of las t yea r.
T he compa ny provided earnings guidance for the fourth quarter of 2009. It es tima tes tota l revenues to be between
$134.5 million and $138. 5 million. It es tima tes non-G AAP net income before deducting the s ha re of non-G AAP net
income perta ining to the non-controlling interes t in C ha ngyou to be between $49. 5 million to $51. 5 million. After
deducting the s hare of non-G AAP net income pertaining to the non-controlling interes t in C hangyou, it es timates
non-G AAP net income to be between $35.0 million to $37.0 million a nd non-G AAP fully diluted earnings per s ha re to
be between 90 cents and 95 cents . C ons idering its s hare in C hangyou, the es timated impa ct of this expens e is
expected to reduce its fully diluted earnings per s hare for the fourth quarter of 2009 under US G AAP by US 6 cents to
US 8 cents .
Q uepas a C orp. a nnounced the launch of its Developer Interface and O pen S ocial S andbox. T he launch of the Developer
Interfa ce is pa rt of Q uepas a's overall s trategy to open the s ite to third party O pen S ocial developers who would like to
develop applica tions for its global audience. T he compa ny believes that this new Developer Interfa ce and O pen S ocial
S andbox will become an ea s y mechanis m for developers to tes t a nd s ubmit their applica tions for inclus ion in the s ite's
Application a nd/or G a mes s ections a nd thus enhance the overall us er experience a nd drive s ite traffic and monetiza tion.
T he Developer Interface cons is ts of a toolbox that developers us e when s ubmitting a n O pen S ocia l application for inclus ion
on any s ocial s ite. T he toolbox includes documentation of the interfaces a vailable, a news area, a community built for the
developers where they can communicate and interact with other application developers a s well as with Quepa s a's
development tea m, a nd the O pen S ocial S a ndbox where they can tes t completed applications with va lid tes t data.
IAC /InterActiveC orp announced that it has repurcha s ed approximately 5,600, 000 s hares at an average price of $16. 69 per
s hare during the qua rter ended S eptember 30, 2009. T ill J une 30, 2009, IAC has repurcha s ed 22,874, 884 s hares for a total
cos t of $653.16 million under the progra m. As of S eptember 30, 2009, the company has repurcha s ed approximately
28, 474,884 s hares for a tota l of $746. 62 million.
O pen T ext C orp. (Nas da qG S : O T E X ) announced its intention to ma ke a normal cours e is s uer bid through the facilities of
the NAS DAQ G loba l S elect Ma rk et on O ctober 27, 2009. Under the bid, O pen expects to repurcha s e approximately up to
2,819, 037 s hares . T he maximum number of s hares tha t ma y be purcha s ed is calculated as 5% of the outs tanding common
s hares of O pen T ext at the beginning of the bid. T he repurcha s es over the NAS DAQ could commence in November 2009 if
des irable. T he bid will expire one year from the commencement date.
IAC /InterActiveC orp. reported unaudited cons olida ted earnings res ults for the third qua rter a nd nine months ended
S eptember 30, 2009. F or the qua rter, the company reported net income attributa ble to IAC s hareholders of $21. 6 million or
$0. 16 per diluted s hare on revenue of $336. 5 million agains t net los s attributable to IAC s hareholders of $14. 8 million or
$0. 11 per diluted s hare on revenue of $369. 2 million a year a go. E a rnings from continuing operations were $23.8 million or
$0. 18 per diluted s hare aga ins t los s from continuing operations $1. 2 million or $0. 01 per diluted s hare a year ago. O perating
income was $7.1 million a gains t operating los s of $22.6 million a year a go. E a rnings from continuing operations before
income taxes were $58. 08 million a gains t los s from continuing operations before income taxes of $86. 6 million a yea r ago.
Adjus ted E P S was $0. 34 agains t adjus ted los s per s hare of $0. 14 a year ago.
S ocial Media V entures Inc. announce tha t it has s igned a marketing a ffiliate a greement with P ets criptions .com.
P ets criptions . com is a provider of pharma ceuticals , medicine, a nd other innova tive products for pets . P ets criptions .com
offers pet owners acces s to inexpens ive pet products including medicine a nd pha rmaceutica ls . T he online reta iler offers
direct s hipments of pet pha rmaceutica ls and other pet s upply products directly to its cus tomers , offering cus tomer s avings
on a wide arra y of pet medicines . All products a re ins pected by the K entucky B oard of P ha rmacy.

K ey Developments - c ontinued
C ompany
Open Text C orp. (Nas daqG S : OTE X)
ValueC lic k Inc. (Nas daqG S : VC L K )
S handa Interactive E ntertainment L td.
(Nas daqG S :S NDA)
Quepas a C orp. (OTC B B : QP S A)
S hutterfly, Inc . (Nas daqG S :S FL Y)
Open Text C orp. (Nas daqG S : OTE X)
Tencent Holdings L td. (S E HK : 700)
OAO R B C Information S ys tems
(R TS :R B C I)
K ings oft C o. L td. (S E HK : 3888)
P ay88, Inc. (OTC B B : P AYI); S ohu.com
Inc. (Nas daqG S :S OHU)
Figure 7b. Key Developments – continued
Source. Capital IQ
Headline
O pen T ext C orp. Announces Unaudited C ons olida ted
F inancia l R es ults for the F irs t Q ua rter E nded S eptember revenue for the firs t quarter wa s $211.4 million, up 16% compa red to $182.6 million for the s a me period in the prior fis cal
30, 2009
V alueC lick Inc. R eports Unaudited C ons olida ted
E arnings R es ults for the T hird Q ua rter a nd Nine Months
E nded S eptember 30, 2009 ; P rovides E arnings
G uidance for the F ourth Q ua rter of 2009
S handa Interactive E nterta inment Ltd. , Annua l G eneral
Meeting, O ct 28, 2009
Q uepas a C orp. - C onference P res entation C a ll
S hutterfly Inc. R eports C apita l E xpenditure for the T hird
Q uarter E nded S ep. 30, 2009; P rovides F ree C as h F low
O utlook for the Y ear 2009
O pen T ext C orp. Announces New R elea s e of its
E nterpris e P ortal S olution, V ignette P orta l V ers ion 8.0
C hina Unicom T eams Up with T encent's T enP ay for
O nline P ayments
O AO R B C Information S ys tems R eaches $208 Million
Debt R es tructuring Deal
K ings oft La unches W ap. s houji. cn
P ay88, Inc. E nters Dis tribution Agreement with S ohu.com P ay88, Inc. announced that it ha s entered into a dis tribution agreement with S ohu. com Inc. T hrough its s ubs idiary, Q ianbao
T echnology, P ay88 will act a s a dis tributor of S O HU digita l products , with a pa rticular focus on mobile phone games . As a
res ult of this new rela tions hip, Q ianbao T echnology will now be a ble to offer mobile ga mes to the domes tic market in C hina .
Page 9
Notes
O pen T ext C orp. announced unaudited cons olidated fina ncial res ults for the firs t quarter ended S eptember 30, 2009. T ota l
yea r. Adjus ted net income in the quarter was $32. 8 million or $0.58 per s hare on a diluted ba s is , up 16% compared to $28. 2
million or $0. 53 per s hare on a diluted bas is for the s a me period in the prior fis cal year. Net income in accordance with U. S .
generally accepted accounting principles wa s $1.7 million or $0.03 per ba s ic a nd diluted s hare compared to $14. 7 million or
$0. 28 per s ha re on a diluted bas is for the s ame period in the prior fis cal yea r. T he company reported income before income
tax of $5.186 million and income from opera tions of $4. 792 million compared to income before income ta x of $20. 712
million and income from opera tions of $22. 977 million for the s ame period of la s t year. T he compa ny reported net cas h
provided by opera ting activities of $4.502 million a nd additions of ca pital as s ets , net of $7.665 million compared to net cas h
provided by opera ting activities of $24. 813
million and a dditions of capital a s s ets , net of $3.887 million for the s ame period of las t year.
V alueC lick Inc. reported unaudited cons olida ted earnings res ults for the third qua rter a nd nine months ended S eptember
30, 2009. F or the qua rter, revenue was $130.2 million, adjus ted-E B IT DA of $33. 4 million. T he C ompany genera ted
approximately $22. 6 million in free cas h flow in the third qua rter, defined as net cas h from opera tions les s capital
expenditures . G AAP net income was $25.0 million, or $0. 29 per bas ic and diluted common s hare. T he C ompany recorded
an income tax benefit in the third quarter of 2009 of $2.7 million due to favorable income tax adjus tments recorded in the
qua rter. E xcluding thes e adjus tments and as s uming the normaliz ed 42% effective tax rate included in the company's
previous ly-is s ued third quarter guida nce, net income would have been $13. 0 million, or $0. 15 per diluted common s hare.
Non-G AAP net income, which excludes dis continued operations , s tock -bas ed compens a tion and a mortiz ation of inta ngible
as s ets wa s $30. 3 million, or $0. 34 per diluted common s hare. T he company reported net income of $1.999 million or $0.02
per bas ic and diluted s hare on revenue of $148.065 million for the third qua rter of 2008. T he company reported income before
T he compa ny provided earnings guidance for the fourth quarter of 2009. T he company expects adjus ted E B IT DA
of $32 million to $35 million on revenue of $128 million to $138 million for the fourth qua rter of 2009. T he company
expects G AAP diluted net income per common s ha re of $0. 15 to $0.16 a nd Non-G AAP diluted net income per
common s hare of $0.21 to $0. 22 for the fourth qua rter of 2009.
S handa Interactive E nterta inment Ltd., Annua l G enera l Meeting, O ct 28, 2009, at 10:00 C C T -C hina C oas t, US S R Zone 7.
Loca tion: Is land S hangri-La, L evel 7, executive boardroom, P a cific P lace, S upreme C ourt R oad, C entral, Hong K ong.
Agenda: T o elect 8 directors to s erve for the ens uing year or until their s ucces s ors are elected and duly qua lified; and to
cons ider any other bus ines s properly brought before the meeting.
T o communicate progres s achieved in developing its bus ines s model
S hutterfly Inc. reported capita l expenditure of $4. 9 million for the third quarter ended S ep. 30, 2009, which included $2. 7
million for technology equipment a nd s oftware, approximately $1. 1 million for ma nufacturing equipment and building
improvements a nd $1. 1 million in capita liz ed s oftware development cos ts .
T he compa ny now expects full year 2009 free cas h flow to ra nge from approximately $14 million to a pproxima tely $22
million.
O pen T ext C orp. announced a new relea s e of its enterpris e porta l s olution, V ignette P ortal vers ion 8. 0. T he s olution allows
organiz ations to provide cus tomers , employees a nd pa rtners with a rich internet experience where they can find relevant
and pers onalized informa tion aggrega ted from multiple bus ines s and cons umer-ba s ed s ys tems . V ignette P orta l 8. 0
s implifies the adminis tration a nd creation of dynamic, content-rich W eb s ites with the ability to rapidly s yndicate porta l
applications acros s W eb properties powered by multiple s ys tems . V ignette P orta l 8 from O pen T ext expands on the
vers a tility and rich interopera bility a fforded a pioneer in the enterpris e portal s pace. It helps bus ines s es unify their W eb
s oftware portfolios into s leek, eas y-to-us e W eb s ites a nd allows thos e s a me bus ines s es to engage cus tomers and partners
with rich a nd s ocially ena bled W eb experiences . T he relea s e of P ortal 8. 0 not only demons trates O pen T ext's continued
commitment to V ignette cus tomers and technology, but als o ena bles additional s ocial media ca pabilities that align with the
company's s tra tegic development of E nterpris e 2. 0 s olutions . O pen T ext recently announced that it plans to enhance its E C M S uite w
technology from its exis ting W eb S olutions and V ignette. B y offering a variety of s olutions , the company will
allow organiz ations -regardles s of s iz e a nd indus try-to s ucces s fully addres s their bus ines s needs .
T enpay, an online payment s ervice operated by C hina's T encent H oldings Ltd. , has s igned a contra ct with C hina U nicom
(Hong K ong) Ltd. to provide online pa yment s ervices . Under the terms of the contract, the carrier's us ers ca n us e T enpay to
recharge their phones via C hina Unicom's online s ervice center and a pply for C hina Unicom's online value-added s ervices .
T hey can als o buy prepaid cards , mobile hands ets and 3G data cards from the ca rrier's online s tore. T encent's T enpay
handled €2. 53 billion worth of tra ns actions in the s econd quarter of 2009. C hina Unicom will a ls o us e T enpay's e-billing
s ervices to handle pa yments between online s ervice centers and provincial divis ions .
O AO R B C Information S ys tems reached a $208 million debt res tructuring deal with the creditors .
K ings oft C o. L td. la unched wireles s Internet webs ite wa p.s houji.cn in an attempt to offer va rious mobile phone application
s ervices for us ers . S ince the open beta tes ting on O ctober 1, 2009, wa p.s houji.cn has been luring 600,000 unique vis itors at
mos t per day, with da ily pa ge view of 2.3 million or s o. T he new s ite, which offers mobile phone-ba s ed s oftware, ga me,
theme, as well a s picture downloading s ervices , will be opened not only to K ings oft us ers but a ls o to mobile phone us ers ,
noted an official from the Hong K ong-lis ted compa ny. S o far, K ings oft ha s joined hands with nea rly 100 mobile phone
s oftware companies , collecting approximately 1, 000 kinds of mobile phone s oftware and more tha n 10, 000 mobile phone
games and theme products . T he products ca n meet the dema nd of mobile phone us ers .

K ey Developments - c ontinued
C ompany
S hutterfly, Inc . (Nas daqG S : S FL Y)
C hangyou.c om L imited
(Nas daqG S : C YOU)
Quepas a C orp. (OTC B B : QP S A)
DigitalP os t Interac tive, Inc .
(OTC B B : DG L P )
Openwave S ys tems Inc .
(Nas daqG S : OP W V)
J umbuc k E ntertainment L imited
(AS X: J MB )
J umbuc k E ntertainment L imited
(AS X: J MB )
B right Things plc (AIM: B GT)
Openwave S ys tems Inc .
(Nas daqG S : OP W V)
Northgate Tec hnologies L imited
(B S E : 590057)
DigitalFX International, Inc .
(OTC B B : DG F X)
VOIS , Inc . (OTC B B : VOIS )
Wizzard S oftware C orporation
(AME X: WZE )
Tree.C om, Inc . (Nas daqG M:TR E E )
Unis erve C ommunic ations C orp.
(TS XV: US S )
P erfec t World C o., L td.
(Nas daqG S : P WR D)
United Online Inc . (Nas daqGS :UNTD)
Figure 7c. Key Developments – continued
Source. Capital IQ
Headline
S hutterfly Inc. R eports Unaudited C ons olidated E arnings
R es ults for the T hird Q uarter and Nine Months E nded
S eptember 30, 2009 ; P rovides E arnings G uidance for
the F ourth Q uarter and F ull Y ear of 2009
C hangyou. com L imited O pens U . S . S ubs idiary
Q uepas a C orp. - C onference P res entation C all
DigitalP os t Interactive, Inc. - C onference P res entation
C all
O penwave S ys tems Inc. P rovides E arnings G uidance for O penwave S ys tems Inc. provided earnings guidance for the full year of fis cal 2010. T he company thinks that the full year of
the F ull Y ear of F is cal 2010
J umbuck E ntertainment L imited Announces New
A ppointments
J umbuck E ntertainment L imited, A nnual G eneral
Meeting, O ct 29, 2009
B right T hings plc, Annual G eneral Meeting, O ct 29, 2009 B right T hings plc, Annual G eneral Meeting, O ct 29, 2009, at 10: 00 G MT T ime. L ocation: T he offices of F aegre & B ens on
O penwave S ys tems Inc. R eports C ons olidated E arnings
R es ults for F irs t Quarter E nded S eptember 30, 2009
Northgate T echnologies L imited, B oard Meeting, Oct 30,
2009
S us an Hantman R es igns from the B oard of Directors of
DigitalF X International, Inc.
V OIS , Inc. Announces Management C hanges ;
A pproves Articles of A mendment to Its Articles of
Incorporation
W izz ard S oftware C orporation has filed a S helf
R egis tration in the amount of $0. 82 million.
T ree. C om Inc. A nnounces Unaudited C ons olidated
F inancial R es ults for the T hird Q uarter and Nine Months
E nded S eptember 30, 2009
U nis erve C ommunications C orp. Announces
C ons olidated Unaudited E arnings R es ults for the F irs t
Q uarter E nded Augus t 31, 2009
P erfect W orld C o. , L td. Announces B oard C hanges
U nited O nline Declares Q uarterly Dividend P ayable on
November 30, 2009
Page 10
Notes
S hutterfly Inc. reported unaudited cons olidated earnings res ults for the third quarter and nine months ended S eptember 30,
2009. F or the quarter, the company reported los s from operations of $9. 055 million, los s before income taxes of $9. 003
million and net los s of $6. 346 million or $0. 25 per bas ic and diluted s hare on net revenues of $40. 495 million compared to
the los s from operations of $9. 226 million, los s before income taxes of $8. 871 million and net los s of $2. 800 million or $0. 11
per bas ic and diluted s hare on net revenues of $35. 953 million for the s ame period a year ago. Adjus ted E B IT DA was $2. 0
million, compared to $0. 1 million in the third quarter of 2008.
T he company provided earnings guidance for the fourth quarter and full year of 2009. F or the quarter, the company expects
that net revenues to range from $102. 6 million to $112. 6 million, a year-over-year change of (4% ) to 5% . G AA P operating
income to range from $21 million to $27 million. Non-G AA P operating income to range from $26 million to $32 million.
G AAP diluted net los s per s hare to range from $0. 55 to $0. 66. Non-G A AP diluted net los s per s hare to range from $0. 68 to $0. 78. Adjus ted E B IT DA to rang
C hangyou. com L imited has opened its U. S . s ubs idiary in S ilicon V alley and aims to introduce its hugely s ucces s ful online
games in A s ia to American gamers . T he company's firs t releas e in the U. S . market Dragon Oath will launch O pen B eta
Nov. 5. Dragon Oath, which has run in A s ia for over three years , has over 75 million regis tered players and 910, 000
concurrent us ers .
T o communicate progres s achieved in developing its bus ines s model and to inform attendees of the abundant mark et
opportunity andcompany's
T o dis cus s the how company is pos
bus ines s , itioned
growth within both
s trategy theoutlook,
and L atino market and
including thes ocial networking
opportunities press pace.
ented by recently
announced contracts with major new bus ines s partners in the photography market
fis cal 2010 will be cas h flow neutral to pos itive from operations . T he company will focus on maintaining a non-G AAP net
income breakeven level until and s ees revenue improvement. S ince the majority of revenue comes from backlog, outlook
for 2010 remains unchanged des pite the improvement in firs t quarter of fis cal 2010. T he company expects 2010 revenue to
be a s us tained level as 2009.
J umbuck E ntertainment L imited announced at its AG M held on October 29, 2009, elected Adrian R is ch, B ruce B ennie and
Harvey P arker as directors of the company.
J umbuck E ntertainment L imited, Annual G eneral Meeting, O ct 29, 2009, at 15: 00 E AS T -E as t Aus tralian S tandard G S T .
L ocation: T he S ebel Hotel Melbourne, 394 C ollins S treet, Melbourne V ic 3000, Aus tralia. Agenda: T o receive and cons ider
the financial report and the reports of the directors and of the auditor for the financial year ended J une 30, 2009; to adopt
the remuneration report of the company for the financial year J une 30, 2009; and to cons ider the election of directors .
L L P , 7 P ilgrim S treet, L ondon E C 4V 6L B , U nited K ingdom. Agenda: T o is s ue s hares in the C ompany both pro-rata to
exis ting s hareholders and to non-s hareholders ; to amend the articles of as s ociation of the C ompany to reflect recent
changes in company legis lation in the UK .
O penwave S ys tems Inc. announced that revenues for the firs t fis cal quarter ended S eptember 30, 2009 were $49. 8 million,
compared with $47. 9 million in the prior quarter ended J une 30, 2009 and $51. 0 million in the S eptember quarter in the
preceding fis cal year. O n a G A AP bas is , net income for the firs t fis cal quarter ended S eptember 30, 2009 was $990, 000, or
$0. 01 per s hare, compa red with a net los s of $3. 4 million, or $0. 04 per s hare, in the prior quarter and a net los s of $10. 5
million, or $0. 13 per s hare, in the S eptember quarter in the preceding year. O n a non-G AAP bas is , net los s for the firs t
fis cal quarter ended S eptember 30, 2009 was $380, 000, or $0. 00 per s hare, compared with net los s of $278, 000 or $0. 00
per s hare, in the prior quarter and net los s of $1. 0 million, or $0. 01 per s hare, during the S eptember quarter of the prior
year. O perating los s from continuing operations for the period was $1. 8 million a gains t $5. 5 million for s ame period a year
ago. P re-tax los s from continuing operations was $3. 0 million agains t $12. 0 million for s ame period a year ago. Net los s
from continuing operations was $3. 5 million or $0. 04 per
diluted s hare agains t net los s from continuing operations was $12. 5 million or $0. 15 per diluted s hare for s ame period
a year ago. Net cas h us ed in operating activities for the period was $8. 8 million agains t $2. 9 million for s ame period a
year ago. P urchas es of property and equipment, net for the period was $607, 000 agains t $477, 000 for s ame period a
year ago.
Northgate T echnologies L imited, B oard Meeting, O ct 30, 2009 Agenda: T o cons ider and take on record the unaudited
financial res ults for the quarter and half year ended S eptember 30, 2009.
DigitalF X Interna tional, Inc. announced that it has received a letter from S us an Hantman dated O ctober 21, 2009, informing
about her res ignation from the company's B oard of Directors .
O n O ctober 30, 2009 Mr. Herbert T abin, a member of the B oard of Directors and S enior V ice P res ident - C orporate
Development of V O IS , Inc. res igned his pos itions as an executive officer and director of the company. T here were no
dis agreements between the company and Mr. T abin on any matter. T he B oard of Directors appointed Mr. Mark B . L ucky to
the B oard to fill the vacancy res ulting from Mr. T abin's res ignation and appointed Mr. L ucky and S ecretary. Mr. L uck y has
s erved as the C hief F inancial O fficer of IceW E B Inc. s ince March 2007.
O n O ctober 29, 2009 the B oard of Directors of V OIS Inc. approved A rticles of Amendment to its Articles of Incorporation
changing the par value of V O IS ' common s tock from $0. 001 per s hare to $0. 00001 per s hare. P urs uant to the provis ions of
the F lorida B us ines s C orporations Act no s hareholder cons ent was required for this action.
W iz zard S oftware C orporation has filed a S helf R egis tration in the amount of $0. 82 million.
T ree. C om Inc. announced unaudited cons olidated financial res ults for the third quarter and nine months ended S eptember
30, 2009. F or the quarter, the company reported total revenue of $50, 716, 000, opera ting los s of $7, 442, 000, los s before
income taxes of $7, 582, 000, net los s of $7, 400, 000 or $0. 68 per diluted s hare agains t total revenue of $50, 258, 000,
operating los s of $22, 455, 000, los s before income taxes of $22, 624, 000, net los s of $22, 551, 000 or $2. 41 per diluted s hare
a year ago. Adjus ted E B IT DA was a los s of $3. 5 million, which was a $4. 8 million improvement year-over-year, from the
third quarter 2008 adjus ted E B IT DA los s of $8. 3 million.
Unis erve C ommunications C orp. announced cons olidated unaudited earnings res ults for the firs t quarter ended A ugus t 31,
2009. F or the quarter, the company reported revenues of C A D 3, 986, 059 compared to C AD 5, 138, 741 for the s ame period
a year ago. O perating income was C AD compared to opera ting los s of C AD 265, 134 for the s ame period a year ago. L os s
before income taxes from continuing was C AD 213, 649 compared to C A D 1, 421, 510 for the s ame period a year ago. Net
los s and comprehens ive los s for the period from continuing operations was C A D 238, 058 or C AD or C AD per s hare per
s hare compared to C AD 1, 354, 310 or C AD 0. 06 per s hare for the s ame period a year ago. Net los s and comprehens ive
los s for the period was C A D 238, 058 or C AD 0. 01 per s hare compared to C AD 1, 960, 037 or C AD 0. 08 per s hare for the
s ame period a year ago. Net cas h provided by operating activities was C AD 102, 980 compared to C AD 825, 239 for the
s ame period a year ago. P urchas e of property and equipment was C AD 49, 073 compared to C AD 46, 381 for the s ame
period a year ago.
P erfect W orld C o. , L td. announced the appointment of Mr. Daniel Dong Y ang as an independent director to the company's
B oard of Directors . Mr. Daniel Dong Y ong has been a partner of S A IF P artners , s ince 2004 and s erved as a director from
2001 to 2004. He currently s erves as a director of s everal companies , s uch as MainOne Information T echnology C o. , L td.
and Mobi Antenna T echnologies (S henz hen) C o. , L td. T he company als o announced that Mr. L ouis T . Hs ieh recently
s tepped down from his pos ition as a member of the B oard of Directors of the company.
United O nline Inc. announced that its B oard of Directors has declared a quarterly cas h dividend of $0. 10 per s hare. T he
dividend is payable on November 30, 2009 to s hareholders of record on November 13, 2009.
 Page 11

VALUATION
Online Gaming companies lead market-cap charts: Fourteen companies in our W eb 2.0 universe top US$1 billion in
market capitalization (Figure 8). Fifty-eight of the 89 companies have market caps under US$100 million, with 38 under
US$25 million. Online gaming companies dominate the top of the list, led by Tencent Holdings (SEHK:700) with a market
cap of approximately US$33.5 billion.

Market C ap (US D m)
Tencent Holdings L td. 33542.7
Netea s e. com Inc. 4878. 1
S handa Interactive Entertainment L td. 3039. 9
Modern Times Group Mtg A B 2906. 3
Gree, Inc. 2548. 3
IA C/InterA ctiveCorp. 2510. 1
Perfect World Co., L td. 2178. 9
Open Tex t Corp. 2082. 2
S ohu. com Inc. 2072. 7
Changy ou. com L imited 1669. 3
G iant Interactive Group, Inc . 1644. 0
Mix i, Inc. 1345. 8
Chines e G amer Interna tional 1104. 8
K ings oft Co. L td. 1058. 1
V alueClic k Inc . 802. 7
NEOWIZ G ames Corporation 681. 9
United Online Inc. 659. 0
S hutterfly , Inc . 365. 3
NetDragon WebS oft, Inc. 326. 7
GungHo Online Entertainment, Inc. 271. 0
XING A G 269. 3
CDC Corp. 249. 1
S K Communica tions Co., L td. 247. 4
OA O R B C Information S y s tems 222. 0
GigaMedia L td. 217. 0
Gamania Digital Enterta inment Co., 209. 8
My riad Group A G 209. 7
The9 L imited 196. 2
Openw ave S y s tems Inc. 172. 0
DA DA S pA 167. 7
A c toz S oft Co., L td. 105. 2
GameOn Co L td. 92. 1
Tree.Com, Inc. 87. 7
Fluid Mus ic Canada, Inc. 86. 4
Y D Online Corp. 85. 6
Cy berplex Inc. 83. 6
TheS treet. com, Inc. 73. 8
Frogs ter Interactive Pic tures A G 71. 5
NeuLion Incorporated 71. 1
GeoS entric Oy j 65. 8
HanbitS oft, Inc. 62. 8
S park Netw orks , Inc . 59. 3
PNI Digita l Media Inc. 56. 6
Gra vity Co. , Ltd 43. 6
NeXplore Corporation 41. 8
DXN Holdings B hd 41. 6
Ngi G roup Inc. 38. 2
Webz en Inc. 35. 9
Eolith Co. L td. 32. 2
A Q Interac tiv e, Inc. 28. 5
Digita lTow n, Inc. 27. 6
S oc ialw is e, Inc. 22. 1
LookS mart, L td. 22. 1
Wiz z ard S oftw are Corporation 21. 7
Dolphin Digital Media, Inc. 21. 5
Northgate Technologies L imited 21. 3
Ex tens ions , Inc. 17. 8
Y nk K orea Inc. 17. 4
A cceleriz e New Media, Inc. 15. 4
Quepas a Corp. 15. 3
J umbuc k Entertainment L imited 14. 5
Lingo Media Corporation 10. 9
IA S Energy , Inc . 8.5
MOK O. mobi L imited 8.3
S pectrumDNA , Inc . 7.3
is eemedia Inc. 6.8
UOMO Media, Inc 6.6
B right Things plc 5.9
CornerWorld Corporation 5.7
Magnitude Information S y s tems Inc. 5.4
Worlds . com Inc . 5.2
B ey ond Commerc e, Inc. 4.2
DigitalPos t Interac tiv e, Inc. 3.9
V OIS , Inc. 3.3
B roa dWebA s ia Inc. 2.5
S NA P Interac tiv e, Inc. 2.3
B igs tring Corp. 2.0
Wy nds torm Corporation 1.8
LiveWorld Inc. 1.2
Unis erve Communications Corp. 1.1
B etaw ave Corporation 0.9
CLICK ER Inc. 0.7
K A B Dis tribution Inc . 0.6
A s s ociated Media Holdings Inc . 0.4
The Parent Compa ny 0.2
China G atew ay Corporation 0.0
S NM G lobal Holdings 0.0
Dibz Internationa l, Inc. 0.0
S oc ial Media V entures 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 12

TEV/Revenue (LTM) averages 5.3x: The overall average TEV/Revenue (LTM) multiple for our group is 5.3x (vs. 6.1x last
week) (Figure 9). As the past week saw broad-based share price decline, we now see four companies (vs. five last week)
trading above 25x revenue – Bigstring Corp. (OTCBB:BSGC) at 49.2x, Dolphin Digital Media, Inc. (OTCBB:DPDM) at
38.6x, NexPlore Corporation (OTCPK:NXPC) at 27.0x, and Tencent Holdings Ltd. (SEHK:700) at 26.6x. The median of
1.7x is below last week’s 1.9x multiple. Note that we exclude multiples greater than 50x. Thirty-two companies have
multiples under 1.5x.

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

60. 0

49.2
50. 0

38.6
40. 0

30. 0 26.627.0

20. 0 16.8
15.3 15.6
12.112.6
10.6
8.3 8.9 9.0
10. 0
A verage, 5.3 7.3 7.6
5.3 5.9
3.7 3.7 4.3 4.54.6
1.3 1.4 1.6 1.7 2.0 2.0 2.2 2.4 2.6 2.6 2.8 3.1 3.2 3.3
1.1 1.1 1.2 1.3
0.0 0.0 0.0 0.1 0.1 0.2 0.2 0.2 0.2 0.3 0.3 0.4 0.4 0.5 0.6 0.7 0.7 0.7 0.7 0.7 0.8 0.8 0.9 0.9 1.0 1.1
0. 0

N E O WIZ G ames C orporation

J umbuc k E nterta inment L imited

MO K O .mobi L imited
UO MO Media, Inc
C LIC K E R Inc.

G a mania Digital E ntertainment C o., Ltd.

G ungHo O nline E ntertainment, Inc.

P N I Digital Media Inc.

C hines e G amer Interna tional

U nis erve C ommunications C orp.
O AO R B C Information S y s tems

N orthgate T echnologies L imited

DXN Holdings B hd

C hangy ou.com L imited

G a meO n C o Ltd.

T ree.C om, Inc.

C DC C orp.

B ey ond C ommerc e, Inc.

S K C ommunica tions C o., Ltd.

DigitalP os t Intera ctive, Inc.

F luid Mus ic C a nada , Inc.

Dolphin Digital Media, Inc.

T he P a rent C ompany

Modern T imes G roup Mtg AB

G eoS entric O y j
S N M G loba l Holdings

NeuLion Inc orporated

C ornerWorld C orporation

Lingo Media C orporation

NeX plore C orporation

T heS treet.com, Inc .
S NAP Intera ctive, Inc.

United O nline Inc .

O pen T ex t C orp.
C hina G atewa y C orporation

AQ Intera ctive, Inc .

IAC /InterAc tiveC orp.

C y berplex Inc .

G igaMedia Ltd.

S pa rk N etwork s , Inc .

V alueC lic k Inc .

Y D O nline C orp.

NetDra gon WebS oft, Inc .

E olith C o. Ltd.

S ohu.com Inc .

is eemedia Inc .

F rogs ter Intera ctiv e P ictures AG

Mix i, Inc .

As s ociated Media Holdings Inc .

G ree, Inc .

T encent Holdings Ltd.

XIN G AG
L iveWorld Inc .

O penwave S y s tems Inc .

P erfect World C o., Ltd.

H anbitS oft, Inc .

Y nk K orea Inc .

S ocial Media V entures Inc .

B igs tring C orp.

My riad G roup AG
S hutterfly , Inc .

Acceleriz e New Media , Inc .

K ings oft C o. Ltd.

DADA S pA
Ac toz S oft C o. , Ltd.

Wiz z ard S oftware C orporation

Figure 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 (18), trading at an average multiple of 12.6x (vs. 16.3x last week). On a geographic basis, the
United States has the most companies (38), trading at an average of 6.9x revenue (vs. 8.7x last week) (Figure 11). Ten of
the companies are Canadian (average 4.1x revenue).

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

14.0 12.6 14.0
12.1
12.0 12.0
12.1
12.1 10.0
10.0
8.0 9.0 8.0 7.5
(x)
(x)

6.9
6.0 6.5 6.3 6.0 6.3 5.6
6.2 5.6 5.5 5.5 5.4
4.0 3.7 3.3 4.0 4.1
2.7 2.0 1.7 1.7 3.3
2.0 1.6 0.9 0.7 2.0 1.7 1.7 0.9 0.7
0.3 0.3 0.7 0.3
0.0 0.0 0.00.0 0.0 0.0 0.0 0.0
OTCPK
OTCBB

Grand Total
GTSM

NasdaqGM
HLSE
SEHK

TSE

OSE

KOSE
NasdaqGS

RTS

Germany
OM

CM

Finland

China

United

Japan

Canada

Malaysia
Hong Kong

India

Russia
United
TSX

XTRA

AMEX

KLSE

BSE

NYSE

Italy
AIM

South
TSXV
SWX

Taiwan

Australia
ASX

Switzerland
Sweden

# Companies 18 1 3 2 11 4 5 2 2 4 1 2 1 1 6 14 1 1 5 1 1 1 1 # Companies 1 10 38 3 2 2 6 10 1 1 8 1 1 1 1 1 1 88

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

Source. Capital IQ
 Page 13

TEV/EBITDA (LTM) averages 10.6x: The average multiple for the 35 companies with positive EBITDA (and multiples
under 100x) is 10.6x LTM EBITDA (vs. 11.8x last week), led by HanbitSoft, Inc. (KOSE:A047080) 34.8x multiple (Figure
12). Twenty-one companies have EBITDA multiples under 7x. The median multiple is 8.6x (vs. 9.9x last week).

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

40. 0
34. 8
35. 0
29. 8
30. 0
25. 9 26. 5
25. 0 23. 6

19. 7
20. 0 17. 2

15. 0 13. 2
11. 9 12. 1 12. 2 12. 8
A verage, 10.6
8. 9 9. 0 9. 7 10. 2 10. 5
10. 0 8. 6
7. 0 7. 0 7. 4 7. 6
6. 6 6. 8
4. 5 4. 7 4. 9 5. 1 5. 3
5. 0 2. 8
0. 7 0. 9 1. 1 1. 2
0. 4
0. 0

NE O WIZ G ames C orporation

J umbuck E ntertainment L imited

G amania Digital E ntertainment C o. , Ltd.

G ungH o O nline E ntertainment, Inc .

P NI Digital Media Inc .

C hines e G amer International

O AO R B C Information S y s tems

DXN Holdings B hd

C hangy ou. c om L imited

G ameO n C o L td.

C DC C orp.

S K C ommunic ations C o. , Ltd.

Modern T imes G roup Mtg AB
S NAP Interac tive, Inc .

U nited O nline Inc .

T heS treet. c om, Inc .

O pen T ex t C orp.
V alueC lic k Inc .

S park Network s , Inc .

C yberplex Inc.

NetDragon WebS oft, Inc.

S ohu. c om Inc .

Y D O nline C orp.

IAC /InterAc tiveC orp.

G ree, Inc .

Mix i, Inc .
XING AG
P erfec t World C o. , L td.

O penwave S y s tems Inc.

Y nk K orea Inc.

H anbitS oft, Inc.

S hutterfly , Inc.

K ings oft C o. L td.

DADA S pA
Actoz S oft C o. , L td.

Figure 12. TEV/EBITDA Ranking

Source. Capital IQ

TEV/EBITDA (LTM) by country/exchange: Figure 13 shows the average TEV/EBITDA multiples by stock exchange. The
OTCBB has the largest number of companies (18), trading at an average multiple of 0.7x. On a geographic basis, the
United States has the most companies (38), trading at an average of 6.8x EBITDA (Figure 14). Ten of the companies are
Canadian (average 13.5x EBITDA).

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

25.0 23.6 20.0
18.0 18.6
20.0 16.0
18.617.8 14.0 15.6
15.0 15.6
15.6 12.0 13.5 13.5
(x)

13.5 12.2
(x)

10.0 12.2 12.1 10.0 9.7

8.9 8.0 8.2 6.8
6.8 6.6 8.0
5.0 5.3 5.1 4.7 6.0 6.8
1.1 5.1
0.7 0.4 4.0
0.0 2.0 0.4
OTCBB
GTSM

NasdaqGM

1.1
TSE

KOSE

SEHK

OSE

NasdaqGS

RTS
OM

CM
XTRA

TSX

AMEX

KLSE
TSXV

ASX

0.0 0.0
Germany
Japan

Canada

Hong Kong

China

United

Malaysia

Russia
Italy
South
Korea

States
Taiwan

Australia
Sweden

Switzerland

# Companies 4 2 5 6 2 1 3 1 14 1 4 2 1 5 2 18 1
# Companies 3 8 6 2 10 1 1 10 1 38 1 2 1 1

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

Source. Capital IQ
 Page 14

P/E (LTM) averages 18.8x: The average multiple for the 33 companies with positive earnings (and multiples under 100x)
is 18.8x LTM EPS (vs. 19.0x last week), led by Tencent Holdings Ltd. (SEHK:700) with a 68.5x multiple (Figure 15).
Fourteen companies have P/E multiples under 10x. The median is 11.3x.

P /E L T M (x)

80.0

68.5
70.0 65.4
58.6
60.0
54.0

50.0 45.4
39.2
40.0 35.5

30.0 27.7

A verage, 18.8 20.0 21.1

18.0
20.0 14.9 15.6 16.2
13.3
11.2 11.3 12.3
9.1 9.2 10.7
10.0 6.9 7.5 8.6
4.0 4.1
2.0 2.2 2.2 2.8 3.0
0.0 0.0
0.0

NE O W IZ G ames C orporation
J umbuck E ntertainment Limited

G amania Digital E ntertainment C o., Ltd.

G ungH o O nline E ntertainment, Inc.

C hines e G amer International
DXN H oldings B hd

C hangy ou.com Limited

G iant Interactive G roup, Inc.

G ameO n C o Ltd.

Modern T imes G roup Mtg AB

G ravity C o., Ltd

T he9 Limited
S handa Interactive E ntertainment Ltd.

Neteas e.com Inc.

S NAP Interactive, Inc.

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

G igaMedia Ltd.

Y D O nline C orp.

IAC /InterActiveC orp.

S ohu.com Inc.

NetDragon W ebS oft, Inc.

S park Network s , Inc.

Worlds .com Inc.

G ree, Inc.

Mix i, Inc.

T encent H oldings Ltd.

XING AG
W ebz en Inc.

P erfect World C o., Ltd.

H anbitS oft, Inc.

K ings oft C o. Ltd.

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 (18), trading at an average multiple of 12.0x. On a geographic basis, the United States has
the most companies (38), trading at an average of 12.7x earnings (Figure 17). Ten of the companies are Canadian
(average 26.5x EPS).

Average P/E - By Country

Average P/E - By Exchange 50.0 46.8
70.0 45.0
58.6 40.0
60.0
35.0
50.0 30.0
42.9 28.9 26.5
(x)

40.0 34.3 25.0 21.9

(x)

28.9
30.0 28.6 20.0 15.6
13.9
18.0 16.2 15.0 12.7 12.0
20.0 15.6 12.0 6.9
10.9 7.5 10.0 4.1
6.9
10.0 4.1 5.0 0.0
2.0
0.0 0.0 0.0 0.0
Germany
Japan

Canada

China

United

Malaysia

Italy
South
Korea
OTCBB
GTSM

NasdaqGM

States
Taiwan

Australia
OSE

TSE

SEHK

KOSE

NasdaqGS
OM

Sweden

Switzerland
XTRA

AMEX

TSX

KLSE

NYSE
ASX

# Companies 1 5 3 2 2 6 2 1 18 14 4 1 2 1 5 # Companies 6 2 10 3 1 10 38 8 1 2 1 1

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

Source. Capital IQ
 Page 15

UPCOMING EVENTS

E arnings C alendar
C ompany Date Time Quarter C onf C all Details
United Online Inc. (NasdaqGS:UNTD) Nov-04-2009 5:30 p.m. EST Q3/09 877-718-5098
Spark Networks, Inc. (AMEX:LOV) Nov-05-2009 4:30 p.m. EST Q3/09 800-723-6604
Cyberplex Inc. (TSX:CX) Nov-10-2009 4:30 p.m. EST Q3/09 888-892-3255
Figure 18. Earnings Calendar
Source. Company reports
 Page 16

C omparable C ompany Analys is > Web 2.0

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

A ccelerize New Media, Inc. US D AC L Z OT C B B 15.4 0.55 0. 0% -8.3% -1.8% 25.0% 37.5% -20.3%
A ctoz S oft C o. , L td. KR W A052790 K OS E 105.2 14, 500 -11.0% -19.4% -39.8% 0. 7% 52.6% -59.7%
A Q Interactive, Inc. JPY 3838 TS E 28.5 46, 800 -3.3% -6.3% -21.7% -0.3% 5.1% -43.6%
A s s ociated Media H oldings Inc. US D AS MH OT C P K 0.4 0.01 0. 0% -35.7% -35.7% 500.0% 200. 0% -55.0%
B igs tring C orp. US D BSGC OT C B B 2.0 0.03 -10.5% -5.6% 30.8% 36.0% 36.0% -40.4%
B eta wave C orpora tion US D B W AV OT C B B 0.9 0.03 -20.0% -60.0% -54.3% -75.4% -85. 5% -89.0%
B eyond C ommerce, Inc. US D B Y OC OT C B B 4.2 0.08 -25.5% -39.3% -77.2% -94.1% -95. 7% -95.8%
B right T hings plc GB P AIM:B G T A IM 5.9 0.01 10.0% 0.0% -15.6% -31.3% 12.2% -44.3%
B roadW ebA s ia Inc. US D BWBA OT C P K 2.5 0.03 0. 0% -87.0% -87.0% -91.4% -97. 8% -99.0%
C DC C orp. US D C H IN.A Nas da qG S 249.1 2.35 -4.9% -4.9% -24.7% 52.6% 104. 3% -40.1%
C ha ngyou.com Limited US D C Y OU Nas da qG S 1, 669.3 30.35 -6.0% -6.7% -19.7% -6.3% NM -37.3%
C hina G a tewa y C orporation US D CGWY OT C P K 0.0 0.00 -86.7% -86.7% -86.7% 0. 0% -80. 0% -93.3%
C hines e G a mer International TWD G T S M:3083 GTS M 1, 104.8 426.00 -0.5% -9.4% 3.8% 91.0% 407. 1% -17.9%
C LIC K E R Inc. US D CLK Z OT C B B 0.7 0.01 6. 3% -22.7% 23.2% 88.9% -97. 9% -97.9%
C ornerW orld C orpora tion US D CW R L OT C B B 5.7 0.06 0. 0% 0.0% 20.0% -57.1% -70. 0% -87.2%
C yberplex Inc. C AD T S X: C X TS X 83.6 1.39 0. 0% 6.9% -14.7% -18.7% 247. 5% -30.2%
DADA S pA E UR C M:DA CM 167.7 7.07 -5.4% 4.8% 15.8% 5. 4% -4.5% -13.7%
DXN Holdings B hd MY R DXN K LS E 41.6 0.64 1. 6% 5.8% 58.8% 54.9% 86.8% -8.0%
Dibz Interna tional, Inc. US D DIB Z OT C P K 0.0 0.00 20.0% NM 20.0% -88.0% -97. 6% -97.6%
DigitalP os t Intera ctive, Inc. US D DG LP OT C B B 3.9 0.05 -9.1% -10.7% 4.2% 212.5% 42.9% -49.5%
DigitalT own, Inc. US D DG T W OT C B B 27.6 1.01 -49.5% -49.5% -32.7% -59.6% -59. 6% -71.1%
Dolphin Digital Media, Inc. US D DP DM OT C B B 21.5 0.40 -18.4% 0.0% -4.8% -29.8% -54. 0% -57.9%
E olith C o. L td. KR W A041060 K OS E 32.2 530.00 -7.8% -27.4% -35.4% -42.1% -3.6% -54.3%
E xtens ions , Inc. US D E XT I OT C P K 17.8 0.40 60.0% 100.0% 100.0% 166.7% 300. 0% -60.4%
F luid Mus ic C anada, Inc. C AD T S X: F MN TS X 86.4 1.79 -0.6% 27.9% 88.4% 225.5% 411. 4% -16.7%
F rogs ter Intera ctive P ictures AG E UR FR G XT R A 71.5 19.05 -4.3% 6.5% 43.2% 124.1% 349. 3% -11.4%
G amania Digita l E ntertainment C o., L td. TWD 6180 GTS M 209.8 44.80 -8.3% -6.4% -24.5% 28.0% 213. 3% -34.9%
G ameO n C o L td. JPY 3812 TS E 92.1 85, 200 -3.6% -3.8% -20.8% -11.8% -15. 6% -43.9%
G eoS entric Oyj E UR G E O1V H LS E 65.8 0.05 0. 0% 0.0% 25.0% 25.0% 25.0% -16.7%
G ia nt Interactive G roup, Inc. US D GA NY S E 1, 644.0 7.26 -4.0% 10.2% -13.6% -14.6% 8.8% -24.1%
G igaMedia L td. US D G IG M Nas da qG S 217.0 3.98 -11.9% -15.0% -23.0% -40.6% -31. 4% -48.5%
G ra vity C o., Ltd US D GR VY Nas da qG M 43.6 1.57 -3.1% -11.8% -6.5% 60.2% 106. 6% -40.3%
G ree, Inc. JPY T S E :3632 TS E 2, 548.3 5, 090 1. 0% 12.9% 30.7% 84.4% NM -4.9%
G ungH o Online E ntertainment, Inc. JPY 3765 OS E 271.0 211, 500 -4.3% -10.2% 0.5% 53.6% 101. 6% -24.4%
H anbitS oft, Inc. KR W A047080 K OS E 62.8 3, 420 -3.9% -17.8% -23.0% -24.3% 18.5% -48.5%
IAC /InterA ctiveC orp. US D IA C I Nas da qG S 2, 510.1 19.02 -1.7% -0.8% 3.8% 19.1% 14.3% -10.6%
IAS E nergy, Inc. US D IA S A. E OT C B B 8.5 0.12 14.3% 0.0% -33.3% -53.8% 33.3% -57.1%
is eemedia Inc. C AD IE E T S XV 6.8 0.15 3. 6% 11.5% 107.1% 20.8% 20.8% -9.4%
J umbuck E ntertainment Limited AU D AS X: J MB AS X 14.5 0.34 0. 0% -11.7% -10.5% -15.0% -20. 0% -32.0%
K AB Dis tribution Inc. C AD T S X: K AB TS X 0.6 0.01 -50.0% -99.2% -99.2% -98.6% -99. 4% -99.4%
K ings oft C o. L td. HK D 3888 S E HK 1, 058.1 7.51 0. 0% 8.7% -13.0% 98.2% 270. 0% -20.7%
L ingo Media C orpora tion C AD T S XV :LM T S XV 10.9 0.95 -5.0% -9.5% -17.4% 8. 0% -20. 2% -34.9%
L iveW orld Inc. US D LV W D OT C P K 1.2 0.04 -2.4% 14.3% 60.0% -33.3% -50. 0% -84.0%
L ookS mart, L td. US D LO OK Nas da qG M 22.1 1.29 -1.5% 12.2% -4.0% -7.9% -26. 7% -29.9%
Ma gnitude Information S ys tems Inc. US D MAG Y OT C B B 5.4 0.01 20.0% 33.3% 84.6% -7.7% 0.0% -60.0%
Mixi, Inc. JPY 2121 TS E 1, 345.8 781,000.00 6. 0% 39.0% 15.9% 72.4% 9.8% -0.4%
Modern T imes G roup Mtg AB SEK MT G B OM 2, 906.3 307.10 -5.7% 5.9% 11.9% 34.4% 61.2% -9.7%
MO K O .mobi L imited AU D MK B AS X 8.3 0.09 13.9% 38.5% 38.5% 28.6% 125. 0% -10.0%
Myriad G roup AG C HF MY R N S WX 209.7 4.89 8. 9% 6.8% 29.7% -5.0% -30. 1% -34.8%
NE O W IZ G ames C orporation KR W A095660 K OS E 681.9 38,600.00 -4.7% -9.5% 14.0% 29.7% 432. 4% -14.0%
NetDra gon W ebS oft, Inc. HK D 777 S E HK 326.7 4.79 -6.6% -5.0% -24.6% -11.3% 97.9% -33.0%
Netea s e. com Inc. US D NT E S Nas da qG S 4, 878.1 37.69 0. 7% -14.2% -16.8% 17.7% 73.5% -22.3%
NeuLion Incorpora ted C AD T S X: NL N TS X 71.1 0.70 -2.8% -30.0% -14.6% -6.7% 27.3% -46.2%
NeXplore C orpora tion US D NXP C OT C P K 41.8 0.75 7. 1% 7.1% 7.1% 7. 1% -21. 1% -48.3%
Ngi G roup Inc. JPY 2497 TS E 38.2 27,550.00 -9.1% 9.5% -16.9% -25.1% -63. 8% -68.3%
Northgate T echnologies Limited INR 590057 BSE 21.3 29.30 -21.7% -32.0% -25.2% -26.4% -61. 4% -64.3%
O pen T ext C orp. US D OT E X Nas da qG S 2, 082.2 36.93 -6.3% -0.5% -4.4% 19.6% 32.1% -10.9%
O penwa ve S ys tems Inc. US D OP W V Nas da qG S 172.0 2.06 -24.0% -17.9% -20.2% 63.5% 178. 4% -34.2%
P erfect W orld C o., Ltd. US D PWRD Nas da qG S 2, 178.9 43.24 -5.7% -3.8% 13.8% 125.6% 140. 4% -14.4%
P NI Digital Media Inc. C AD T S XV :P N T S XV 56.6 1.80 6. 5% -6.2% 16.1% 16.1% -10. 0% -22.4%
Q uepa s a C orp. US D QP S A OT C B B 15.3 1.20 -11.1% -20.0% 0.0% 23.7% -47. 8% -48.9%
O AO R B C Information S ys tems US D R BCI R TS 222.0 1.60 0. 0% 6.7% 52.4% 62.4% 6.7% -5.9%
S ha nda Interactive E nterta inment L td. US D S NDA Nas da qG S 3, 039.9 45.20 -3.0% -6.0% -10.7% -10.5% 84.1% -30.5%
S hutterfly, Inc. US D S F LY Nas da qG S 365.3 14.24 -3.3% -9.0% -6.0% 12.8% 100. 3% -21.5%
S K C ommunications C o. , L td. KR W A066270 K OS E 247.4 7,050.00 -9.6% -20.3% -26.0% -25.0% 35.6% -45.1%
S NA P Intera ctive, Inc. US D S TVI OT C B B 2.3 0.21 -40.0% -40.0% 5.0% -67.7% -47. 5% -80.6%
S NM G loba l H oldings US D S NMN OT C P K 0.0 0.00 0. 0% 0.0% -70.0% -50.0% -99. 2% -99.3%
S ocial Media V entures Inc. US D S MV I OT C P K 0.0 0.01 -22.0% -88.3% -96.9% 17.0% -99. 6% -99.8%
S ocialwis e, Inc. US D S CLW OT C B B 22.1 0.50 -13.8% -18.0% -24.2% 2. 0% -73. 0% -75.0%
S ohu.com Inc. US D S O HU Nas da qG S 2, 072.7 54.07 -9.8% -16.3% -14.0% -2.4% 4.4% -25.2%
S pa rk Networks , Inc. US D LO V A ME X 59.3 2.88 12.5% 29.1% 16.6% 0. 3% -1.7% -8.6%
S pectrumDNA, Inc. US D S P XA OT C B B 7.3 0.15 50.0% 15.4% 7.1% -40.0% -37. 5% -66.7%
T encent H oldings Ltd. HK D 700 S E HK 33,542. 7 143 -3.8% 16.4% 29.7% 94.6% 175. 2% -5.9%
T he P a rent C ompany US D K IDS . Q OT C P K 0.2 0.01 0. 0% -42.1% -30.0% -44.0% -99. 2% -99.3%
T he9 L imited US D NC T Y Nas da qG S 196.2 7.82 -2.9% 3.1% -17.1% -17.3% -39. 8% -53.0%
T heS treet.com, Inc. US D TS CM Nas da qG M 73.8 2.41 -13.3% -17.7% 16.4% 14.8% -33. 4% -40.8%
T ree.C om, Inc. US D TR E E Nas da qG M 87.7 8.05 6. 5% 3.2% -16.0% -31.5% 259. 4% -38.4%
U nis erve C ommunica tions C orp. C AD T S XV :US S T S XV 1.1 0.05 25.0% 25.0% -50.0% 25.0% -72. 2% -50.0%
U nited O nline Inc. US D UNT D Nas da qG S 659.0 7.86 -9.4% 1.9% -13.1% 9. 2% 6.9% -16.9%
U OMO Media, Inc US D UO MO OT C B B 6.6 0.08 -24.0% -37.2% -52.5% -49.3% -60. 0% -92.8%
V alueC lick Inc. US D V CLK Nas da qG S 802.7 9.21 -27.5% -27.7% -20.8% -10.1% 43.2% -33.9%
V OIS , Inc. US D V O IS OT C B B 3.3 0.00 -42.9% 0.0% -21.6% 25.0% -46. 7% -82.6%
W ebzen Inc. US D W ZE N Nas da qG M 35.9 3.03 3. 8% 18.8% -9.8% 10.9% 203. 0% -35.3%
W izzard S oftwa re C orporation US D W ZE A ME X 21.7 0.43 2. 4% -6.5% -12.2% -25.9% -46. 3% -75.1%
W orlds .com Inc. US D W DDD OT C B B 5.2 0.10 0. 0% -16.7% -23.1% -54.5% -58. 3% -58.3%
W ynds torm C orpora tion US D W Y ND OT C P K 1.8 0.10 0. 0% 0.0% 0.0% 11.1% -50. 0% -80.4%
XING A G E UR O1B C XT R A 269.3 34.88 -4.2% -1.8% 26.3% 16.7% 44.4% -8.2%
Y D Online C orp. KR W A052770 K OS E 85.6 6,810.00 -12.1% -20.9% -26.6% -22.5% 14.5% -45.1%
Y nk K orea Inc. KR W A023770 K OS E 17.4 3,900.00 -9.3% 0.0% -22.3% -36.8% -33. 8% -55.2%
H igh 60.0% 100.0% 107.1% 500.0% 432. 4% -0.4%
L ow -86.7% -99.2% -99.2% -98.6% -99. 6% -99.8%
Average 780.0 -4.9% -7.9% -5.7% 14.1% 35.8% -45.2%
Media n -3.3% -5.3% -12.2% 0. 7% 6.7% -40.8%

Figure 19. Price Performance

Source. Capital IQ
 Page 17

C omparable C ompany Analys is > Web 2.0

Valuation Multiples

P rimary US D Market TE V/L TM TE V/ NTM TE V/L TM TE V/NTM

C ompany Name S ec tor C ountry E xc hange Ticker C ap ($m) R evenue R evenue E B ITDA E B ITDA P /L TM E P S P /NTM E P S P /TangB V
Accelerize New Media, Inc. Direct Marketing U nited S ta tes OTCB B AC LZ 15.4 4.6x - - - - - -
Actoz S oft C o., Ltd. G aming S outh K orea K OS E A052790 105.2 0.7x - 2. 8x - 14.9x - 1.6x
AQ Intera ctive, Inc. G aming J apan TS E 3838 28.5 0.1x 0.1x - - - 8.4x 0.5x
As s ocia ted Media Holdings Inc. Mobile U nited S ta tes OTCP K AS MH 0.4 12.6x - - - - - -
B igs tring C orp. Ins ta nt Mes s aging U nited S ta tes OTCB B BSGC 2.0 49.2x - - - - - -
B etawave C orpora tion Media U nited S ta tes OTCB B B W AV 0.9 - - - - - - 0.2x
B eyond C ommerce, Inc. S ocial Networking U nited S ta tes OTCB B B YOC 4.2 0.9x - - - - - -
B right T hings plc S ocial Networking U nited K ingdom AIM AIM:B G T 5.9 - - - - - - -
B roadW ebAs ia Inc. S ocial Networking U nited S ta tes OTCP K BWBA 2.5 - - - - - - -
C DC C orp. G aming H ong K ong N as da qG S C HIN.A 249.1 0.7x 0.7x 9. 7x 6.8x - - 99.6x
C hangyou.com Limited G aming C hina N as da qG S C Y OU 1,669.3 5.3x 4.4x 8. 6x 7.1x 11.3x 9.7x 8.7x
C hina G atewa y C orpora tion Mobile U nited S ta tes OTCP K CGW Y 0.0 0.0x - - - - - -
C hines e G amer Interna tional G aming T a iwa n GTS M G T S M:3083 1,104.8 16.8x 15.7x 29.8x 25.6x 39.2x 23.4x 19.0x
C L IC K E R Inc. Direct Marketing U nited S ta tes OTCB B C LK Z 0.7 0.3x - - - - - -
C ornerW orld C orporation C ontent U nited S ta tes OTCB B CW R L 5.7 2.4x - - - - - -
C yberplex Inc. A dvertis ing C ana da TS X T S X: C X 83.6 0.7x 0.6x 6. 6x 5.1x 7.5x 8.3x 3.3x
DA DA S pA S ocial Networking Italy CM C M:DA 167.7 0.9x 0.8x 6. 8x 5.8x - 15.9x -
DXN Holdings B hd S ocial Networking Mala ys ia K LS E DXN 41.6 0.7x - 5. 1x - 6.9x - 0.9x
Dibz Interna tiona l, Inc. S NS Apps U nited S ta tes OTCP K DIB Z 0.0 - - - - - - -
DigitalP os t Interactive, Inc. C ontent U nited S ta tes OTCB B DG L P 3.9 5.9x - - - - - -
DigitalT own, Inc. S ocial Networking U nited S ta tes OTCB B DG T W 27.6 - - - - - - -
Dolphin Digital Media, Inc. S ocial Networking U nited S ta tes OTCB B DP DM 21.5 38.6x 1.4x - - - 1.6x -
E olith C o. L td. G aming S outh K orea K OS E A041060 32.2 2.2x - - - - - 2.9x
E xtens ions , Inc. C ontent U nited S ta tes OTCP K E XT I 17.8 - - - - - - -
F luid Mus ic C a nada, Inc. Media U nited S ta tes TS X T S X:F MN 86.4 15.3x 14.6x - - - - 8.1x
F rogs ter Interactive P ictures A G G aming G erma ny XT R A FR G 71.5 7.3x - - - - - 8.8x
G amania Digital E ntertainment C o., Ltd. G aming T a iwa n GTS M 6180 209.8 1.3x - 7. 4x - 18.0x - 2.7x
G ameO n C o Ltd. G aming J apan TS E 3812 92.1 0.2x - 0. 9x - 9.2x - 1.1x
G eoS entric Oyj Mobile F inland H LS E G E O1V 65.8 12.1x - - - - - 54.3x
G iant Interactive G roup, Inc. G aming C hina NY S E GA 1,644.0 - - - - 2.0x 15.2x 0.3x
G igaMedia Ltd. G aming T a iwa n N as da qG S G IG M 217.0 0.8x 0.7x - 3.7x 8.6x 8.0x 1.8x
G ravity C o., Ltd G aming S outh K orea N as da qG M GR VY 43.6 - - - - 0.0x - 0.0x
G ree, Inc. S ocial Networking J apan TS E T S E : 3632 2,548.3 15.6x 6.8x 25.9x 12.4x 54.0x 24.6x 25.0x
G ungH o O nline E nterta inment, Inc. Media J apan OS E 3765 271.0 2.0x - 8. 9x - 58.6x - 20.2x
Ha nbitS oft, Inc. G aming S outh K orea K OS E A047080 62.8 0.8x - 34.8x - 11.2x - 1.8x
IAC /InterActiveC orp. Media U nited S ta tes N as da qG S IAC I 2,510.1 0.6x 0.6x 10.5x 4.8x 10.7x 32.8x 1.2x
IAS E nergy, Inc. V ideo C ana da OTCB B IAS A.E 8.5 - - - - - - -
is eemedia Inc. C ontent C ana da T S XV IE E 6.8 3.7x - - - - - 5.6x
J umbuck E ntertainment Limited S ocial Networking Aus tra lia AS X AS X:J MB 14.5 0.5x 0.5x 1. 1x 1.2x 4.1x 3.0x 1.3x
K A B Dis tribution Inc. C ontent C ana da TS X T S X:K AB 0.6 - - - - - - 0.0x
K ings oft C o. Ltd. G aming C hina S E HK 3888 1,058.1 7.6x 6.2x 17.2x 11.9x 21.1x 15.9x 5.9x
Lingo Media C orpora tion L earning C ana da T S XV T S XV : LM 10.9 8.3x - - - - - 19.5x
LiveW orld Inc. S ocial Networking U nited S ta tes OTCP K LV W D 1.2 0.0x - - - - - 0.5x
LookS ma rt, L td. Direct Marketing U nited S ta tes N as da qG M L OOK 22.1 - - - - - - 0.8x
Magnitude Information S ys tems Inc. S ocial Networking U nited S ta tes OTCB B MA G Y 5.4 - - - - - - -
Mixi, Inc. S ocial Networking J apan TS E 2121 1,345.8 9.0x 7.7x 26.5x 24.5x 65.4x 57.0x 8.9x
Modern T imes G roup Mtg AB Media S weden OM MT G B 2,906.3 1.7x 1.7x 12.2x 11.9x 15.6x 15.1x -
MOK O .mobi Limited S ocial Networking Aus tra lia AS X MK B 8.3 10.6x - - - - - 8.5x
Myriad G roup AG Mobile S witzerla nd SWX MY R N 209.7 3.3x - - - - - -
NE OW IZ G ames C orporation G aming S outh K orea K OS E A095660 681.9 3.2x - 12.1x - 35.5x - 17.9x
NetDra gon W ebS oft, Inc. G aming C hina S E HK 777 326.7 2.0x 1.4x 7. 0x 3.8x 13.3x 10.6x 1.7x
Netea s e.com Inc. G aming C hina N as da qG S NT E S 4,878.1 - - - - 2.8x 15.1x 0.8x
NeuLion Incorporated V ideo C ana da TS X T S X:NL N 71.1 2.8x - - - - - 5.4x
NeXplore C orporation C ontent U nited S ta tes OTCP K NXP C 41.8 27.0x - - - - - -
Ngi G roup Inc. Media J apan TS E 2497 38.2 - - - - - - 0.7x
Northgate T echnologies Limited Direct Marketing India BS E 590057 21.3 0.3x - - - - 1.2x -
O pen T ext C orp. C ollabora tion C ana da N as da qG S OT E X 2,082.2 2.6x 2.3x 10.2x 8.6x 45.4x 13.1x -
O penwave S ys tems Inc. Mobile U nited S ta tes N as da qG S OP W V 172.0 0.4x 0.4x 11.9x 4.0x - 51.5x 2.4x
P erfect W orld C o., Ltd. G aming C hina N as da qG S PWRD 2,178.9 0.7x 3.4x 1. 2x 6.4x 3.0x 13.7x 1.4x
P N I Digital Media Inc. Digita l Ima ging C ana da T S XV T S XV :P N 56.6 2.6x 2.2x 23.6x 7.1x - 14.4x 19.8x
Q uepa s a C orp. S ocial Networking U nited S ta tes OTCB B QP S A 15.3 - - - - - - -
O AO R B C Information S ys tems Media R us s ia R TS R BCI 222.0 0.0x 1.0x 0. 4x 5.7x - 6.5x -
S handa Interactive E nterta inment Ltd. G aming C hina N as da qG S S NDA 3,039.9 - - - - 2.2x 12.4x 0.8x
S hutterfly, Inc. Digita l Ima ging U nited S ta tes N as da qG S S FLY 365.3 1.1x 1.1x 9. 0x 5.6x - - 2.2x
S K C ommunications C o., Ltd. S earch S outh K orea K OS E A066270 247.4 1.3x - 19.7x - - - -
S N AP Interactive, Inc. Dating U nited S ta tes OTCB B S TVI 2.3 0.2x - 0. 7x - 4.0x - 1.3x
S N M G lobal Holdings Media U nited S ta tes OTCP K S NMN 0.0 1.1x - - - - - -
S ocial Media V entures Inc. S ocial Networking U nited S ta tes OTCP K S MV I 0.0 4.5x - - - - - -
S ocialwis e, Inc. S ocial Networking U nited S ta tes OTCB B S CLW 22.1 - - - - - - -
S ohu.com Inc. G aming C hina N as da qG S S O HU 2,072.7 3.1x 2.7x 7. 0x 6.1x 12.3x 14.5x 3.8x
S park N etworks , Inc. S ocial Networking U nited S ta tes AME X L OV 59.3 1.1x - 5. 3x - 16.2x - 60.6x
S pectrumDN A, Inc. Media U nited S ta tes OTCB B S P XA 7.3 - - - - - - 72.8x
T encent Holdings Ltd. P orta l C hina S E HK 700 33,542.7 26.6x 20.2x - 48.3x 68.5x 56.5x 30.5x
T he P a rent C ompany Media U nited S ta tes OTCP K K IDS .Q 0.2 0.2x 0.2x - 12.8x - - -
T he9 L imited G aming C hina N as da qG S NC T Y 196.2 - - - - 2.2x - 0.1x
T heS treet.com, Inc. Media U nited S ta tes N as da qG M TS CM 73.8 0.1x 0.2x 4. 7x - - - 1.0x
T ree.C om, Inc. P orta l U nited S ta tes N as da qG M TREE 87.7 0.4x 0.4x - 8.4x - 51.8x 1.1x
Unis erve C ommunications C orp. S ocial Networking C ana da T S XV T S XV :US S 1.1 0.2x - - - - - -
United Online Inc. Media U nited S ta tes N as da qG S U NT D 659.0 1.0x 1.0x 4. 5x 3.9x - 6.0x -
UO MO Media, Inc Media C ana da OTCB B UO MO 6.6 8.9x - - - - - -
V a lueC lick Inc. Media U nited S ta tes N as da qG S V CLK 802.7 1.2x - 4. 9x 4.9x - - 4.2x
V O IS , Inc. S ocial Networking U nited S ta tes OTCB B V OIS 3.3 - - - - - - 21.1x
W ebzen Inc. G aming S outh K orea N as da qG M W ZE N 35.9 - - - - 0.0x - 0.0x
W izzard S oftware C orporation P odca s ting U nited S ta tes AME X W ZE 21.7 4.3x - - - - - -
W orlds .com Inc. C ontent U nited S ta tes OTCB B W DDD 5.2 - - - - 20.0x - -
W ynds torm C orporation C ontent U nited S ta tes OTCP K W Y ND 1.8 - - - - - - -
XIN G AG S ocial Networking G erma ny XT R A O1B C 269.3 3.7x 2.8x 12.8x 8.0x 27.7x 16.6x 8.6x
Y D Online C orp. G aming S outh K orea K OS E A052770 85.6 1.6x 1.2x 7. 6x 4.2x 9.1x - 2.8x
Y nk K orea Inc. G aming S outh K orea K OS E A023770 17.4 1.4x - 13.2x - - - 0.8x
High 33,542.7 49.2x 20.2x 34.8x 48.3x 68.5x 57.0x 99.6x
Low 0.0 0.0x 0.1x 0. 4x 1.2x 0.0x 1.2x 0.0x
Average 780.0 5.3x 3.4x 10.6x 9.6x 18.8x 18.7x 10.6x
Median 41.8 1.7x 1.3x 8. 6x 6.4x 11.3x 14.5x 2.5x

Figure 20. Valuation Comparison

Source. Capital IQ
 Page 18

C omparable C ompany Analys is > Web 2.0

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

United S tates 38 C hina 49, 633. 4 C hina 4,963. 3 C hina 4,152. 4 C hina 2, 070. 2 C hina 48. 8%
C a na da 10 U nited S ta tes 5, 811. 3 S weden 2,974. 2 United S tates 3,887. 3 S weden 304. 6 A us tralia 42. 8%
C hina 10 J a pan 3, 871. 5 J apan 645. 3 S weden 1,982. 6 United S tates 290. 0 T aiwan 37. 1%
S outh K orea 8 S weden 2, 974. 2 T aiwan 577. 9 C a na da 1,015. 0 C a na da 200. 0 J apan 24. 2%
J a pa n 6 C anada 2, 488. 2 Hong K ong 294. 6 S outh K orea 707. 3 J a pa n 186. 0 S weden 15. 4%
T a iwa n 3 T a iwa n 1, 733. 6 C anada 248. 8 J a pa n 634. 4 S outh K orea 121. 9 Mala ys ia 14. 4%
Aus tralia 2 S outh K orea 1, 527. 4 S outh K orea 190. 9 T a iwa n 385. 8 T a iwa n 59. 8 Italy 13. 1%
G erma ny 2 G ermany 317. 0 Ita ly 165. 4 Hong K ong 361. 6 Ita ly 31. 9 R us s ia 13. 1%
S witzerla nd 1 Hong K ong 294. 6 R us s ia 160. 9 Ita ly 242. 6 Hong K ong 25. 1 S outh K orea 12. 7%
Hong K ong 1 Ita ly 165. 4 G ermany 158. 5 R us s ia 156. 2 R us s ia 20. 4 Hong K ong 6. 9%
F inla nd 1 R us s ia 160. 9 U nited S ta tes 152. 9 India 82. 8 G erma ny 12. 5 S witzerla nd 1. 9%
Ita ly 1 S witzerla nd 92. 0 S witzerla nd 92. 0 Ma lays ia 77. 1 Ma lays ia 11. 1 C anada -8. 5%
United K ingdom 1 F inland 65. 9 F inland 65. 9 G erma ny 68. 7 Aus tralia 4. 5 G ermany -9. 1%
India 1 Malays ia 39. 8 Malays ia 39. 8 S witzerla nd 40. 0 S witzerla nd 0. 8 U nited S ta tes -21. 9%
S weden 1 India 31. 0 India 31. 0 Aus tralia 17. 8 Norwa y -1. 1 India -50. 0%
R us s ia 1 Aus tralia 22. 1 Aus tralia 11. 0 F inla nd 5. 5 United K ingdom -2. 7 Norway -50. 6%
Ma lays ia 1 U nited K ingdom 6. 0 U nited K ingdom 6. 0 Norwa y 2. 3 F inla nd -17. 5 U nited K ingdom NA
Norwa y 1 Norway 0. 1 Norway 0. 1 United K ingdom 0. 0 India -41. 4 F inland NA

G rand Total 89 G rand Total 69,234.6 G rand Total 777.9 G rand Total 13,819.5 G rand Total 3,276.1 G rand Total 5.1%

Figure 21. Comparison by Country

Source. Capital IQ

C omparable C ompany Analys is > Web 2.0

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

OT C B B 18 S E HK 31, 520. 4 S E HK 10,506. 8 OM 1,982. 6 Na s daqG S 1, 796. 0 NY S E 62. 5%

Na s daqG S 14 Nas da qG S 24, 385. 7 OM 2,974. 2 S E HK 540. 0 S E HK 767. 5 AS X 42. 8%
OT C P K 11 TS E 3, 569. 2 NY S E 1,750. 4 Na s daqG S 498. 6 OM 304. 6 S E HK 40. 6%
K OS E 6 OM 2, 974. 2 Nas da qG S 1,741. 8 CM 242. 6 TS E 160. 2 GTS M 37. 1%
TS E 5 NY S E 1, 750. 4 GTS M 715. 0 NY S E 198. 5 NY S E 124. 1 Nas da qG S 30. 4%
Na s daqG M 5 K OS E 1, 437. 0 TSE 713. 8 RTS 156. 2 K OS E 103. 2 TSE 24. 6%
TS X 4 GTS M 1, 430. 0 OS E 302. 3 OS E 116. 1 GTS M 59. 8 OS E 22. 2%
T S XV 4 XT R A 317. 0 K OS E 239. 5 K OS E 106. 0 CM 31. 9 OM 15. 4%
S E HK 3 OS E 302. 3 CM 165. 4 TS E 103. 7 OS E 25. 8 K LS E 14. 4%
AME X 2 Nas da qG M 279. 7 R TS 160. 9 GTS M 101. 1 RTS 20. 4 CM 13. 1%
AS X 2 TS X 243. 6 XT R A 158. 5 BSE 82. 8 Na s daqG M 15. 6 R TS 13. 1%
XT R A 2 OT C B B 230. 9 SWX 92. 0 Na s daqG M 82. 4 XT R A 12. 5 K OS E 9. 6%
GTS M 2 CM 165. 4 HLS E 65. 9 K LS E 77. 1 K LS E 11. 1 Nas da qG M 7. 7%
SWX 1 R TS 160. 9 TSX 60. 9 TS X 46. 4 AME X 6. 2 T S XV 5. 6%
HL S E 1 SWX 92. 0 Nas da qG M 55. 9 SWX 40. 0 AS X 4. 5 S WX 1. 9%
CM 1 T S XV 76. 6 K LS E 39. 8 XT R A 34. 3 SWX 0. 8 XT R A -9. 1%
BS E 1 AME X 68. 5 AME X 34. 2 AME X 27. 9 OT C NO -1. 1 A ME X -31. 8%
NY S E 1 HLS E 65. 9 BS E 31. 0 OT C P K 16. 5 AIM -2. 7 TSX -34. 7%
OS E 1 OT C P K 65. 8 T S XV 19. 1 T S XV 12. 0 TS X -4. 3 OTCB B -38. 8%
AIM 1 K LS E 39. 8 OT C B B 12. 8 AS X 8. 9 T S XV -4. 6 OTCP K -41. 5%
OM 1 BS E 31. 0 AS X 11. 0 HL S E 5. 5 HL S E -17. 5 BSE -50. 0%
RTS 1 AS X 22. 1 AIM 6. 0 OT C B B 2. 3 OT C P K -34. 1 O T C NO -50. 6%
K LS E 1 AIM 6. 0 OT C P K 6. 0 OT C NO 2. 3 BSE -41. 4 A IM NA
OT C NO 1 OT C NO 0. 1 OT C NO 0. 1 AIM 0. 0 OT C B B -62. 4 HLS E NA

G rand Total 89 G rand Total 69,234.6 G rand Total 777.9 G rand Total 13,819.5 G rand Total 3,276.1 G rand Total 5.1%

Figure 22. Comparison by Exchange

Source. Capital IQ
 Page 19

Financ ing - L as t Three Months (US $ m)

F in. Amount (Million) Type of financ ing
Month C ompany Name C ountry Angel/S eed Debt financ ing S eries A S eries B S eries C S eries D S eries E Grand Total
Aug-09 Turbine US A 50. 0 50. 0
S mith & Tinker US A 29.0 29. 0
Mint US A 14.1 14. 1
Zoove US A 13. 2 13. 2
R ichR elevance US A 12.5 12. 5
Traffiq US A 10.0 10. 0
MediaMath US A 10. 0 10. 0
B ill.c om US A 8.5 8.5
E do Interactive US A 8. 5 8.5
InnoC entive US A 7.3 7.3
OneR iot US A 7.0 7.0
B alihoo US A 7.0 7.0
B oxee US A 6.0 6.0
P olyvore US A 5.6 5.6
Fanbas e US A 5.0 5.0
MOG US A 5.0 5.0
OurS tage US A 3.0 3.0
Z2L ive US A 3.0 3.0
K ODA US A 3. 0 3.0
S coreloop G erma ny 2.8 2.8
R oblox US A 2. 2 2.2
Tremor Media US A 2.0 2.0
iS ocket US A 2.0 2.0
R ights Flow US A 1.5 1.5
P lis ta G erma ny 1.4 1.4
C hes s C ube S outh Africa 1. 3 1.3
L inks ify US A 0. 5 0.5
iS yndica US A 0. 4 0.4
DailyB ooth US A 0. 0 0.0
Aug-09 Total 25.8 11.5 77.6 43.6 63.2 221.6

S ep-09 Twitter US A 100.0 100. 0

E ns equenc e US A 20. 0 20. 0
L ivebookings UK 16.0 16. 0
Mzinga US A 10. 0 10. 0
InXpo US A 9.0 9.0
J obvite US A 8.3 8.3
R iot G ames US A 8.0 8.0
NextB io US A 8.0 8.0
Imeem US A 6.0 6.0
Vuc lip US A 6.0 6.0
YuMe US A 5.0 5.0
B ooyah US A 5.0 5.0
NeoE dge US A 4.0 4.0
Allianc e Health Networks US A 3.3 3.3
Unis fair US A 3. 1 3.1
C onduit L abs US A 3.0 3.0
Mocapay US A 3.0 3.0
Fwix US A 2.8 2.8
Vantrix C anada 2.6 2.6
Mas hL ogic US A 2.5 2.5
G reys tripe US A 2.0 2.0
L oomia US A 1. 5 1.5
FourS quare US A 1.4 1.4
E duFire US A 1.3 1.3
Fluther US A 0. 6 0.6
Trans Gaming Inc. C anada 0. 5 0.5
OnL ive US A
S ep-09 Total 0.6 2.0 16.9 52.3 27.9 23.1 110.0 232.8

Oct-09 DailyMotion F ra nce 25.3 25. 3

P opC ap G ames US A 22.5 22. 5
E ngine Yard US A 19.0 19. 0
HubS pot US A 16.0 16. 0
J ive S oftware US A 12.0 12. 0
S pigit US A 10.0 10. 0
Ooyala US A 10.0 10. 0
S canS cout US A 8.5 8.5
B ox.net US A 7.1 7.1
R eality Mobile US A 6.5 6.5
W atercooler US A 5.5 5.5
Vdopia US A 4.7 4.7
S ometrics US A 4.0 4.0
Amie S treet US A 3.9 3.9
ViVu US A 3.0 3.0
Fizzbac k UK 2.6 2.6
Tec hnorati US A 2. 0 2.0
Onehub US A 1.3 1.3
DataS ync US A 1.2 1.2
DailyB ooth US A 1. 0 1.0
Hot Potato US A 1.0 1.0
L inkedex UK 1. 0 1.0
S tatus Net C ana da 0. 9 0.9
IngB oo US A 0. 8 0.8
C hango C ana da 0.7 0.7
L is tia US A 0. 4 0.4
Oct-09 Total 4.0 40.9 56.5 67.4 2.0 170.8

Nov-09 C ubeTree US A 8.0 8.0

S coopler US A 0. 5 0.5
Nov-09 Total 0.5 8.0 8.5

G rand Total 31.0 2.0 69.3 194.3 138.8 88.3 110.0 633.7

Figure 23. Financing, Last Three Months

Source. Company reports
 Page 20

C ompany Des c riptions - C urrent Month C apital Market Ac tivity

C ompany HQ Webs ite Des cription
Amie S treet United S ta tes www. amies treet. com Amie S treet, Inc. , a W eb bas ed s ocial mus ic s tore, enables members to dis cover, download, and s hare mus ic. T he company wa s founded
in 2006 and is bas ed in Long Is land C ity, New Y ork.
Aurora F eint United S ta tes www. aurorafeint.com Aurora F eint, Inc. offers gaming platform for iphone. T he company is bas ed in B urlingame, C alifornia.
Aviary United S ta tes www. avia ry. com Aviary is a collaborative creative s uite for artis ts of a ll genres . Ava ilable both on and offline, via Adobe’s F lex a nd Air technologies
res pectively, Aviary ena bles artis ts to create on the fly with an inventory of tools for every medium. F rom image editing to typography to
mus ic to 3D to video, a rtis ts can crea te and collaborate us ing the compa ny's free and light s oftwa re.
B ox.net United S ta tes www. box. net B ox. net, Inc. provides online file s torage, s haring, and collaboration s ervices to regis tered us ers in the United S tates and internationally. It
offers file s haring, mobile a cces s , and document editing s ervices to bus ines s es , s chools , a nd other orga niza tions . B ox.net, Inc. was founded
in 2005 and is bas ed in P alo Alto, C a lifornia .
C hango C a nada www. chango.com C hango Inc. provides online advertis ing s olution. T he company provides keyword targeted P P C ca mpaigns and S ea rch E engine Marketing
(S E M) campaigns . C hango Inc. was founded in 2008 and is bas ed in T oronto, C anada.
Daily B ooth United S ta tes www. dailybooth. com DailyB ooth lets us ers follow their friends and update them in real-time through the us e of pictures and s ta tus updates .
DailyMotion F rance www. dailymotion. com Dailymotion S AR L provides on-line video content in F rance and E urope. It operates a video entertainment W ebs ite tha t provides video
s haring s ervices . T he company a ls o ena bles s ha ring of official and profes s iona l contents . Dailymotion S AR L was founded in 2005 and is
bas ed in P aris , F rance.
DataS ync United S ta tes www. datas yncs uite. com DataS ync C orporation develops open s ource cons olidation s oftware. T he company develops DataS ync S uite, a s oftware pla tform that
integrates core applications into an open s ource s oftware-a s -a-s ervice web porta l. Data S ync C orporation wa s founded in 2005 and is bas ed
in S ioux F a lls , S outh Dakota.
E cas t Network United S ta tes www. ecas tinc. com E cas t, Inc. operates a broa dband touch s creen media network in the United S tates . T he company’s network delivers digital mus ic, games ,
entertainment, information, and advertis ing to bars and nightclubs . Its platform als o delivers on-demand content, including videos and
s urveys ; s upports third-party a pplica tions ; and a llows integration of W eb s ervices , s uch as mobile, e-commerce, and s ocial media, including
photo s haring. T he company was founded in 1999 and is ba s ed in S an F rancis co, C alifornia.
E ngine Yard United S ta tes www. engineyard. com E ngine Y a rd, Inc. provides managed hos ting a nd deployment s olutions for R uby and R ails applications . T he company offers a clus ter
computing platform, deployment s upport, and data center s ervices . It helps its clients in building s ites and a pplica tions on-dema nd. E ngine
Y ard, Inc. was founded in 2006 and is bas ed in S a n F ra ncis co, C alifornia with additiona l locations in the United S tates , C anada, E urope,
Is ra el, the P hilippines , Aus tralia, and New Zealand.
F eedR oom United S ta tes www. feedroom. com T he F eedR oom, Inc. provides W eb video s olutions and technology for corporations , media/publis hing organiz ations , and government
a gencies . It offers broadband video dis tribution for W eb, s ea rch engines , and podcas ting; broadband video encoding, ma nagement, and
delivery; performance reporting; broadband video application des ign and development; media advertis ing s ervices ; s ubs cription a nd
regis tration tools ; email video a lert delivery a nd tracking; a nd original content development and production. T he company wa s founded in
1999 and is bas ed in New Y ork, New Y ork . As of S eptember 30, 2009, T he F eedR oom, Inc. opera tes as a s ubs idiary of K IT digital, Inc.
F izzbac k UK www2. fizz back. com T he F izz back G roup Limited provides an on-demand s olution that drives cus tomer engagement at the point-of-experience. Its s olution helps
companies to lis ten, res pond, and act in real-time to their cus tomers ' comments . T he F izz back G roup was formerly known as Ins tant Market
Intelligence Limited a nd changed its name to T he F iz zba ck G roup Limited in J a nuary 2007. T he company was founded in 2004 and is bas ed
in London, the United K ingdom.

G odengo United S ta tes www. godengo. com G odengo, Inc. des igns online publis hing and advertis ing platform for magazine publis hers . T he company provides technology to build,
manage, and dis tribute media content online. G odengo, Inc. was incorpora ted in 2004 and is ba s ed in E meryville, C alifornia.

Figure 24a. Company Descriptions

Source. Company reports, Capital IQ, Crunchbase
 Page 21

C ompany Des c riptions - C urrent Month C apital Market Ac tivity

C ompany HQ Webs ite Des cription
Hot Potato United S ta tes www, hotpotato. com Hot P otato offers internet bas ed s ocial networking s ervices . T he company wa s founded in 2009 and is bas ed in B rooklyn, New Y ork.
HubS pot United S ta tes www. hubs pot. com HubS pot, Inc. offers B 2B inbound ma rketing s oftwa re. Its products include HubS pot Owner, which generates qualified leads and convert
leads into s ales ; and HubS pot Marketer that offers inbound mark eting tools . T he company als o provides s earch engine optimiz ation,
bus ines s blogging, competitor analys is , clos ed-loop marketing analytics , W ebs ite editor, lea d tracking a nd intelligence, lead gra der, landing
page wiz ard, marketing intelligence, s ocial media, and inbound ma rketing s olutions . HubS pot, Inc. was founded in 2006 and is bas ed in
C ambridge, Mas s a chus etts .
Ingboo United S ta tes www. ingboo. com Ingboo Inc. operates as an online marketplace for information upda tes to cons umers . It offers an Internet retrieval utility that allows to track
information, s uch as W ebs ites , job and apartment lis tings , eB ay auctions , C raig's lis t pos ts , news , weather, traffic, s ports s cores , R S S
feeds , twitter updates , celebrity gos s ips , and Y ouT ube videos . T he company a ls o drives traffic to W eb publis hers , bloggers , and retailers . It
enables to a cces s through s martphones and e-mails . T he company was founded in 2007 a nd is bas ed in S unnyvale, C alifornia.
J ive S oftware United S ta tes www. jives oftware. com J ive S oftware, Inc. develops , markets , and s ells s ocial productivity a nd community s oftware s olutions for enterpris es in the United S tates
a nd interna tionally. Its products include C lears pace, an enterpris e collaboration s oftware, which applies a people-centric approa ch to
facilitate work force networking and collaboration applications ; C lea rs pace C ommunity, an enterpris e-clas s community s oftware that is us ed
to build la rge online communities , a s well as to engage cus tomers , and build brands a nd marketing initiatives ; and C lea rs tep, an online
community s olution for s ocial and enterpris e 2. 0 profes s ionals . T he company als o offers s trategic a nd technical cons ulting s ervices . T he
company was founded in 2001 and is bas ed in P ortland, Oregon.
L inkedex UK NA B as ed in London and S an F rancis co, Linkedex aims to help companies a nalys e the proces s by which s earch engines deliver their res ults
a nd achieve higher rankings in na tural (non-pa id-for) s earch for their brands a nd s ervices .
L is tia United S ta tes www. lis tia. com L is tia, which launched in Augus t 2009, is eB ay for free s tuff. Us ers get a certain number of credits which they bid for the item, s o whoever
wins the auction is the pers on who wanted it the mos t. Us ers get credits in three ways : every us er gets a certa in number automa tically, and
you can get more by auctioning items , by referring friends , and by buying them. T he company is bas ed in S unnyvale, C alifornia.
Onehub United S ta tes onehub. com O nehub Inc. provides a W eb application that enables companies to build extra nets for uploading, acces s ing, a nd s haring files and folders
with partners , cus tomers , coworkers , and s uppliers . T he company s erves mark eting, advertis ing, graphic des ign, and cons ulting s ervices
indus tries in the United S tates and internationally. O nehub Inc. was founded in 2007 and is ba s ed in B ellevue, W as hington.
Ooyala United S ta tes www. ooya la. com O oya la is a video technology company that provides indus try-leading s olutions for managing, dis tributing and monetiz ing high-quality video
online. F ounded by former G oogle engineers in April 2007, Ooyala takes a novel approach at delivering video, ta rgeting ads and collecting
video a nalytics . S ince launching its flags hip product, B acklot, in December of 2007, O oyala has s igned up over 1000 paying cus tomers
including W arner B rothers , AOL/B ebo, National G eogra phic, T V G uide a nd the G lam network. T he company is bas ed in Mountain V iew,
Overtone United S ta tes www. overtone-inc. com C alifornia.
O vertone, Inc. delivers brand monitoring a nd engagement to various enterpris es . It offers Open Mic s oftware-as -a-s ervice integrated
lis tening s ys tem, which delivers actionable ins ights from cons umer comments and extracts actionable intelligence from uns tructured
cus tomer-genera ted content. T he company’s Open Mic als o provides real time proces s ing, multi-channel lis tening, and proven s calability.
O vertone, Inc. was formerly known as Is land Da ta C orporation. T he compa ny was founded in 1995 and is bas ed in S an F ra ncis co,
C alifornia. As of 01/05/2004, Overtone, Inc. is a s ubs idia ry of LiveP ers on, Inc.
P opC ap G ames United S ta tes www. popcap.com P opC ap G ames , Inc. develops and publis hes cas ual games . Its games a re played on the W eb, des ktop computers , cell phones ,
s martphones , P DAs , pock et P C s , iP ods , iP hones , ga me cons oles , and in-flight entertainment s ys tems . T he compa ny offers its products to
W eb portals , retail s tores , mobile operators and developers , and game device manufacturers . P opC ap G ames , Inc. was founded in 2000
a nd is bas ed in S eattle, W as hington. It has operations in C hicago, Illinois ; S an F rancis co, C a lifornia; S hanghai, C hina; Dublin, Ireland; and
United S ta tes www. realitymobile. com V ancouver,
R B . CLL
eality Mobile . , CC anada . mobile video and data s haring technology. T he company was founded in 2003 and is bas ed in Herndon,
provides
R eality Mobile
S canS cout United S ta tes www. s cans cout. com SV canS
irginia.
cout, Inc. operates as an online video advertis ing network. It s erves publis hers , a dvertis ers , and ad networks . T he company was
founded in 2005 and is bas ed in B os ton, Mas s achus etts with additional offices in New Y ork and Los Angeles .
S cout L abs United S ta tes www. s coutlabs . com S cout La bs is a powerful, web-bas ed application tha t finds s ignals in the nois e to compa nies build better products and s tronger cus tomer
relations hips . T he company provides technology and a collaborative platform for companies and their agents to lis ten to cus tomers and
engage with them out acros s the Internet.
S ometrics United S ta tes s ometrics . com S ometrics , Inc. operates as an analytics and a d platform s tartup compa ny s pecializ ing in s ocial media. It offers analytics and ad managing
s olutions that focus on s ocial networking platforms a nd applications . T he company als o provides s ocial a dvertis ing s olutions , s uch as
dis plays , engagements , and bra nd as s es s ments , as well as s ocial planners for a dvertis ers . In addition, it offers S ocial Analytics that provide
a nalys is for s ocial applications a nd W ebs ites ; S ocial Ad Manager that helps to s erve and optimiz e ads to increas e revenue acros s s ocia l
media properties ; and V irtual C urrency Mana ger, a virtual currency platform des igned to provide an interface to manage dis parate offer
networks and relations hips for publis hers . T he company s upports F acebook, Mys pace, B ebo, F riends ter, and hi5 platforms . S ometrics , Inc.
wa s founded in 2007 and is headquartered in Los Angeles , C alifornia.

S pigit United S ta tes www. s pigit. com S pigit, Inc. des igns , develops , and dis tributes s ocial networking s oftware for bus ines s innovation. It provides s tra tegic and technical
cons ulting, webs ite des igning, project forecas ting, C R M applications , employee engagement tra cking, web logs , and currency a nd idea
management s ervices . T he compa ny markets its products under InnovationS pigit, IdeaS pigit, and P redictionS pigit brand names . S pigit, Inc.
is bas ed in P leas anton, C alifornia.
S tatus Net C a nada www. s tatus . net S tatus Net, Inc. provides open s ource micro-blogging s ervices for bus ines s es , publis hers and bra nds , and communities . T he company offers
s ta tus . net s oftware, an open s ource micro-blogging s ervice that is us ed to write s hort notices and s end them to friends and fans , a s well as
to create and dis tribute open content. It als o provides profes s ional s upport contracts and cus tomiz ation for companies tha t us e S tatus Net
s oftware on their s ervers for intra net or Internet microblogging. S tatus Net was founded in 2008 and is bas ed in Montrea l, C anada.
Technorati United S ta tes www. technorati.com T echnorati, Inc. engages in s earching, s urfacing, a nd organizing blogs a nd us er-generated content on the W eb. It offers various citizen
media on the W eb, which include blogs , videos , vlogs , podcas ts , photos , and games . T he company was founded in 2002 and is ba s ed in
S an F rancis co, C alifornia.
Vdopia United S ta tes www. vdopia. com V dopia, Inc. operates as an online video advertis ing network and platform company. It enables advertis ers in India to a dvertis e on the online
video content. T he company's s olutions to content owners and publis hers include V DO Ad network to advertis e on video content; V DOAd
platform with campaign ma nagement tools to offer online video advertis ing to a dvertis ers /cus tomers ; B randC onnect Ad technology to deliver
C P Ms ; ana lytic tools to provide s tatis tics about ads and video ana lytics for client’s videos ; and AP Is to create/publis h content. Its s olutions
to a dvertis ers , media pla nners , and marketers include publis her network , bra nd connect with various ad formats on various online Internet
T V channels , advertis ing, mea s urable branding, a nd reporting. V dopia, Inc. was incorporated in 2007 and is bas ed in S a n J os e, C alifornia
with s ales and development offices in S an J os e, C alifornia; and G urgaon a nd Mumbai, India.

VE VO United S ta tes www. vevo. com V E V O operates as a mus ic video web s ite. T he company is bas ed in the United S tates .
ViVu United S ta tes www. vivu. tv V iV u, Inc. develops participative event platform that enables live video pa rticipation from a pers onal computer, Mac, a nd Linux without any
proprietary downloa ds . It offers a s olution for event organiz ers to create, publis h, a nd manage quality video events . T he company wa s
incorporated in 2008 and is ba s ed in S unnyvale, C alifornia.
Waterc ooler United S ta tes www. watercooler-inc. com W atercooler, Inc. operates F anS ection a nd T V Loop online communities that enable us ers to acces s a network of online fan communities in
s ports and televis ion entertainment in the United S tates and internationally. \T he company was founded in 2006 a nd is bas ed in Mountain
V iew, C alifornia.
Yext United S ta tes www. yext. com Y ext, Inc. provides online directories . It focus es on repres enting va rious bus ines s es acros s the United S tates . T he company wa s founded in
2006 and is bas ed in New Y ork, New Y ork .

Figure 24b. Company Descriptions – continued

Source. Company reports, Capital IQ, Crunchbase
 Page 22

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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