SOFTWARE & SERVICES 26 JANUARY 2010

DAVID SHORE, CFA, MBA 416.860.6784

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

INCREASING SEARCH COMPETITIO N DRIVING FLIGHT TO MO BILE

GO OGL E T A K E S S HA R E I N S EA R CH M AR K ET , B UT F U RT H E R G RO WT H M A Y L I E EL S E WH E R E
Google expanded its leading share of the search market to 67% in December 2009, growing the number of searches
that its engine conducts by 58% Y/Y. However, Microsoft’s re-entry into the search space with Bing has shown
promise that the fight is not over. Microsoft-originated W eb queries grew 70% Y/Y – besting Google’s growth.

W e believe that the increasing number of competitors in the general search market is one of the key drivers (along
with the transition to mobile computing that gained significant momentum with the advent of the iPhone) behind the
move to mobile advertising amongst the heavyweights in the industry. Evidence of a move to mobile can be seen in
the acquisitions of AdMob (by Google) and Quattro W ireless (by Apple), the release of Google’s Android mobile
operating system and associated device line-up, and the prevalence of the App Store distribution model made popular
by Apple.

Share of Search Market

66.8%
Google
62.0%

7.2%
Yahoo!
9.4%

6.5%
Baidu
10.0%

3.1%
Microsoft
2.7%

1.6%
eBay
1.5%

1.6%
NHN
2.1%

1.4%
Yandex
1.1%

1.2%
Facebook
1.1%

1.1%
Ask
1.2%

0.8%
Alibaba
1.2%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%

Dec/08 Share Dec/09 Share

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 $72 billion (Figure 1). The median market cap for the group is $57 million, with average trailing revenue of
$442 million (median $25 million). The companies are also generally profitable with a median EBITDA margin of 16.0%.
On a valuation basis, the overall average is 4.8x trailing revenue (median 2.3x) and 12.2x trailing EBITDA (median 9.5x).
Twenty-two of the companies have more than 500 employees.
C omparable C ompany Analys is > Web 2.0
Trading C urrent US D Market US D L TM Total US D L TM Total E B ITDA TE V/L TM TE V/L TM
C ompany Name L TM as of Ticker E xc hange C urrency HQ P rice C ap ($m) R ev ($m) E B ITDA ($m) % R evenue E B ITDA E mployees
Accelerize New Media , Inc. 9/30/2009 AC LZ OT C B B US D United S ta tes 0. 56 16. 1 4. 1 (1.5) -36. 5% 5. 1x - 11
Actoz S oft C o. , Ltd. 9/30/2009 A052790 K OS E KR W S outh K orea 16,500 127. 8 121.7 27. 0 22. 2% 0. 7x 3. 2x NA
AQ Interactive, Inc. 9/30/2009 3838 TS E JPY J a pan 87,500. 00 52. 0 NM NM NM 0. 4x 8. 1x NA
As knet AG 9/30/2009 X T R A:A5A XT R A E UR G ermany 3. 20 23. 2 9, 526. 3 483.6 5.1% 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. 05 2.1 0. 1 (2.3) NM 36.0x - 3
B eta wave C orporation 9/30/2009 B W AV OT C B B US D United S ta tes 0. 09 2.6 8. 4 (14. 3) NM 0. 0x - 48
B eyond C ommerce, Inc. 9/30/2009 B Y OC OT C B B US D United S ta tes 0. 02 1.4 13. 5 (12. 4) -91. 9% 1. 0x - 86
B igs tring C orp. 9/30/2009 BS GC OT C B B US D United S ta tes 0. 02 1.4 0. 1 (1.0) NM 38.8x - 4
B right T hings plc 9/30/2009 AIM: B G T AIM GBP United K ingdom 0. 02 8.8 0. 1 (3.6) NM - - 46
B roa dW ebAs ia Inc. 9/30/2008 BWBA OT C P K US D United S ta tes 0. 08 6.8 0. 0 (4.6) NM - - 46
C DC C orp. 9/30/2009 C HIN. A Na s daqG S US D Hong K ong 2. 45 259. 7 334.2 20. 0 61. 7% 5. 8x 9. 5x 628
C hangyou. com L imited 9/30/2009 C Y OU Na s daqG S US D C hina 32. 76 1,801. 8 255.3 157.4 61. 7% 5. 8x 9. 5x 628
C hines e G amer Interna tiona l 9/30/2009 G T S M: 3083 GTS M TWD T aiwa n 377. 50 997. 4 0. 0 (0.1) NM 13.2x 22. 7x NA
C ornerW orld C orpora tion 10/31/2009 CWR L OT C B B US D United S ta tes 0. 03 2.9 9. 2 NM NM 1. 3x - 16
C yberplex Inc. 9/30/2009 T S X :C X TS X C AD C anada 1. 04 69. 1 2, 135. 5 1, 239.2 58. 0% 0. 4x 3. 9x NA
DADA S pA 6/30/2009 C M: DA CM E UR Italy 5. 20 121. 4 13. 2 NM NM 0. 7x 5. 4x NA
DigitalP os t Interactive, Inc. 9/30/2009 DG LP OT C B B US D United S ta tes 0. 04 3.5 1. 2 (0.9) -73. 8% 4. 8x - 7
DigitalT own, Inc. 11/30/2009 DG T W OT C B B US D United S ta tes 0. 29 7.9 0. 0 (1.4) NM - - 3
Dolphin Digital Media , Inc. 9/30/2009 DP DM OT C B B US D United S ta tes 0. 25 14. 2 0. 3 (4.6) 11. 1% 0. 7x 5. 1x NA
DXN Holdings B hd 8/31/2009 DX N K LS E MY R Ma la ys ia 0. 69 46. 3 33. 9 3.8 11. 1% 0. 7x 5. 1x NA
E n2G o International, Inc. 8/31/2009 E TGI OT C B B US D United S ta tes 0. 90 21. 4 NM (2.4) NM - - NA
E olith C o. Ltd. 9/30/2009 A041060 K OS E KR W S outh K orea 770. 00 52. 3 0. 2 0.0 14. 4% 8. 6x 18. 1x NA
F luid Mus ic C a nada , Inc. 9/30/2009 T S X :F MN TS X C AD United S ta tes 1. 63 99. 1 5. 6 (3.0) -54. 0% 16.2x - NA
F rogs ter Interactive P ictures AG 6/30/2009 FRG XT R A E UR G ermany 19. 00 70. 1 8. 0 (4.3) -54. 0% 7. 3x - NA
G ama nia Digita l E ntertainment C o., Ltd. 9/30/2009 6180 GTS M TWD T aiwa n 55 266. 6 0. 2 (0.1) -47. 0% 1. 6x 9. 6x NA
G ameOn C o Ltd. 9/30/2009 3812 TS E JPY J a pan 73000. 00 77. 1 53. 6 8.8 16. 5% 0. 0x 0. 1x NA
G eoS entric O yj 9/30/2009 G E O 1V HL S E E UR F inland 0. 05 64. 6 10,207. 7 2, 398.7 23. 5% 14.8x - 118
G iant Interactive G roup, Inc. 9/30/2009 GA NY S E US D C hina 7. 35 1,664. 5 0. 5 (1.9) NM - - 1, 570
G iga Media Ltd. 3/31/2009 G IG M Na s daqG S US D T aiwa n 2. 88 157. 0 183.6 NM NM 0. 5x - 751
G ravity C o., Ltd 9/30/2009 GR VY Na s daqG M US D S outh K orea 2 46. 4 0. 2 NM NM - - 469
G ree, Inc. 9/30/2009 T S E : 3632 TS E JPY J a pan 5,790 2,837. 7 651.5 230.7 35. 4% 13.3x 22. 9x NA
G ungHo O nline E ntertainment, Inc. 9/30/2009 3765 OS E JPY J a pan 223,200 279. 4 205.5 119.4 58. 1% 2. 0x 9. 2x NA
HanbitS oft, Inc. 9/30/2009 A047080 K OS E KR W S outh K orea 4090. 00 78. 8 9. 5 2.1 22. 3% 1. 1x - NA
IAC /InterActiveC orp. 9/30/2009 IAC I Na s daqG S US D United S ta tes 20. 30 2,679. 0 1, 359. 6 82. 4 42. 8% 0. 4x 1. 0x 79
InternetArray, Inc. 12/31/2006 INAR OT C P K US D United S ta tes 0. 00 0.0 5. 9 (4.0) 40. 2% 6. 0x 14. 9x 2, 271
is eemedia Inc. 9/30/2009 IE E T S XV C AD C anada 0. 18 9.1 1. 9 (4.3) NM 5. 0x - NA
J umbuck E nterta inment Limited 6/30/2009 AS X :J MB AS X AUD Aus tralia 0. 31 13. 8 17. 5 7.5 42. 8% 0. 4x 1. 0x 79
K ings oft C o. Ltd. 9/30/2009 3888 S E HK HK D C hina 6. 38 902. 3 143.4 57. 7 40. 2% 6. 0x 14. 9x 2, 271
Lingo Media C orporation 9/30/2009 T S X V :LM T S XV C AD C anada 1. 06 12. 7 1. 4 (2.4) NM 9. 0x - NA
LookS mart, Ltd. 9/30/2009 L OO K Na s daqG M US D United S ta tes 0. 99 17. 0 54. 0 (4.5) -8.4% - - 90
Magnitude Information S ys tems Inc. 9/30/2009 MAG Y OT C B B US D United S ta tes 0. 02 8.4 0. 1 (2.3) NM - - 14
Mixi, Inc. 9/30/2009 2121 TS E JPY J a pan 621,000 1,045. 3 136.3 45. 0 33. 0% 6. 7x 20. 3x NA
Modern T imes G roup Mtg AB 9/30/2009 MT G B OM SEK S weden 342 3,177. 3 1, 963. 6 277.4 14. 1% 1. 9x 13. 4x 2, 969
MO K O .mobi Limited 6/30/2009 MK B AS X AUD Aus tralia 0. 12 13. 0 0. 7 (2.5) NM 16.5x - NA
Multiplied Media C orporation 9/30/2009 T S X V :MMC T S XV C AD C anada 0. 23 29. 2 0. 2 (4.8) NM - - NA
Myriad G roup AG 6/30/2009 MY R N SWX C HF S witzerland 4. 90 209. 8 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 34,800 645. 6 217.7 58. 5 26. 8% 2. 9x 10. 9x NA
NetDragon W ebS oft, Inc. 9/30/2009 777 S E HK HK D C hina 4. 17 284. 2 91. 4 27. 8 30. 4% 1. 4x 4. 7x 2, 426
Neteas e. com Inc. 9/30/2009 NT E S Na s daqG S US D C hina 33. 86 4,382. 4 483.0 291.9 60. 4% - - 3, 109
NeuLion Incorporated 9/30/2009 T S X :NLN TS X C AD C anada 0. 65 73. 1 24. 9 (16. 1) -64. 5% 2. 3x - 237
NeXplore C orporation 9/30/2009 NX P C OT C P K US D United S ta tes 0. 55 30. 7 0. 5 NM NM - - NA
Ngi G roup Inc. 9/30/2009 2497 TS E JPY J a pan 27,100 36. 7 79. 8 3.1 3.9% - - NA
Northgate T echnologies L imited 9/30/2009 590057 BSE INR India 26. 25 19. 8 48. 2 (51. 7) NM 0. 4x - NA
O AO R B C Information S ys tems 12/31/2007 R BCI R TS US D R us s ia 1. 30 180. 3 0. 0 (0.3) NM 0. 0x 0. 3x NA
O riented Media G roup B erha d 9/30/2009 O ME DIA K LS E MY R Ma la ys ia 0. 08 3.1 NM NM 25. 9% 2. 9x 11. 1x 3, 900
O pen T ext C orp. 9/30/2009 OT E X Na s daqG S US D C anada 40. 24 2,268. 8 814.5 211.1 25. 9% 2. 9x 11. 1x 3, 900
O penwave S ys tems Inc. 9/30/2009 OP W V Na s daqG S US D United S ta tes 2. 30 192. 1 190.5 6.2 3.3% 0. 5x 14. 0x 590
T he P arent C ompany 8/2/2008 K IDS . Q OT C P K US D United S ta tes 0. 02 0.4 112.0 (13. 5) 55. 0% 2. 3x 12. 9x NA
P erfect W orld C o. , Ltd. 9/30/2009 PWRD Na s daqG S US D C hina 37. 82 1,881. 8 27. 9 0.9 3.3% 0. 3x 0. 6x 2, 096
P NI Digital Media Inc. 9/30/2009 T S X V :P N T S XV C AD C anada 1. 75 56. 8 1, 882. 7 1, 035.6 55. 0% 2. 3x 12. 9x NA
Q uepa s a C orp. 9/30/2009 QP S A OT C B B US D United S ta tes 3. 00 38. 2 0. 2 (9.8) NM - - 74
R eal V alue E s tates , Inc. 11/30/2009 R V LU OT C B B US D Is rael 1. 50 9.6 NM NM NM - - 3, 124
S ahara Media Holdings , Inc. 9/30/2009 S HHD OT C B B US D United S ta tes 0. 25 7.8 0. 0 (4.7) NM - - 514
S handa Interactive E nterta inment Ltd. 9/30/2009 S NDA Na s daqG S US D C hina 48. 47 3,259. 9 694.5 317.3 45. 7% - - 3, 124
S hutterfly, Inc. 9/30/2009 S FLY Na s daqG S US D United S ta tes 16. 39 420. 8 223.1 27. 0 12. 1% 1. 4x 11. 4x 514
S K C ommunications C o., Ltd. 12/31/2008 A066270 K OS E KR W S outh K orea 15,000 552. 8 202.4 13. 2 6.5% 2. 7x 42. 0x NA
S NAP Interactive, Inc. 9/30/2009 S TVI OT C B B US D United S ta tes 0. 10 1.1 3. 4 0.5 15. 6% - - 11
S ocial Media V entures Inc. 12/31/2008 S MV I OT C P K US D United S ta tes 0. 01 0.0 0. 1 (0.1) NM - - NA
S ocialwis e, Inc. 9/30/2009 S C LW OT C B B US D United S ta tes 0. 46 21. 9 NM (5.5) NM - - NA
S ohu. com Inc. 9/30/2009 S O HU Na s daqG S US D C hina 56. 25 2,163. 2 501.0 218.4 43. 6% 3. 2x 7. 4x 3, 197
S park Networks , Inc. 9/30/2009 L OV AME X US D United S ta tes 2. 95 60. 7 47. 5 10. 0 21. 0% 1. 2x 5. 7x 183
S pectrumDNA, Inc. 9/30/2009 S P XA OT C B B US D United S ta tes 0. 20 9.7 0. 1 (2.5) NM - - 7
T encent Holdings Ltd. 9/30/2009 700 S E HK HK D C hina 149 35, 095.5 1, 588. 8 811.5 51. 1% 24.3x 47. 5x 6, 194
T he9 Limited 12/31/2008 NC T Y Na s daqG S US D C hina 7. 25 182. 1 250.6 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. 52 77. 1 67. 0 1.9 2.9% 0. 2x 6. 5x 310
T ree.C om, Inc. 9/30/2009 TR E E Na s daqG M US D United S ta tes 7. 78 84. 8 217.1 9.7 4.5% 0. 3x 6. 1x 700
Unilava C orpora tion 12/31/2008 UNLA OT C B B US D United S ta tes 0. 15 0.0 5. 3 (1.0) -18. 1% 0. 0x - 39
Unis erve C ommunica tions C orp. 8/31/2009 T S X V :US S T S XV C AD C anada 0. 10 2.4 5. 1 (0.9) -18. 1% 0. 4x 46. 2x NA
United O nline Inc. 9/30/2009 UNT D Na s daqG S US D United S ta tes 6. 84 578. 6 996.8 212.9 -42. 2% 4. 2x - NA
UOMO Media, Inc 10/31/2009 UO MO OT C B B US D C anada 0. 04 3.7 1. 0 (0.4) -42. 2% 4. 2x - NA
V alueC lick Inc. 9/30/2009 V C LK Na s daqG S US D United S ta tes 9. 60 822. 4 545.7 130.8 24. 0% 1. 2x 5. 1x 1, 189
V elti P lc 6/30/2009 VEL AIM GBP United K ingdom 2. 89 173. 7 83. 8 17. 2 NM - - 2
V OIS , Inc. 9/30/2009 V O IS OT C B B US D United S ta tes 0. 01 10. 9 0. 0 (1.0) NM - - 2
W ebzen Inc. 9/30/2009 K O S E : A069080 K OS E KR W S outh K orea 14,100 147. 0 24. 2 2.7 11. 0% 3. 6x 32. 3x 328
W izzard S oftwa re C orporation 9/30/2009 W ZE AME X US D United S ta tes 0. 37 19. 8 5. 2 (3.9) -76. 4% 4. 1x - 110
W orlds . com Inc. 9/30/2009 W DDD OT C B B US D United S ta tes 0. 09 4.8 0. 1 (0.6) NM - - 1
XING AG 9/30/2009 O 1B C XT R A E UR G ermany 29. 60 224. 7 61. 4 16. 6 27. 0% 2. 8x 10. 2x 266
Y D O nline C orp. 12/31/2007 A052770 K OS E KR W S outh K orea 6,690 88. 3 60. 3 13. 0 21. 6% 1. 6x 7. 3x NA
Y nk K orea Inc. 12/31/2008 A023770 K OS E KR W S outh K orea 2,870 13. 5 12. 5 1.3 10. 5% 1. 0x 9. 5x NA
High 35, 095.5 10, 207.7 2, 398. 7 61. 7% 38.8x 47. 5x 6, 194
Low 0.0 0. 0 -51.7 -91. 9% 0. 0x 0. 1x 1
Average 803.7 441.7 104.9 10.6% 4.8x 12.2x 969
Median 56. 8 24.6 0. 9 16. 0% 2. 3x 9. 5x 288

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 )
Approaching the $200 million barrier. Total transaction value in the W eb 2.0 universe for January-to-date is $184.5
million, compared with $118.4 million at the end of last week. The number of financings stands at 21 (vs. 13 last week),
averaging $8.8 million each (compared with $9.1 million last week). In comparison, total capital raised in December was
$450.4 million, averaging $12.9 million over 35 deals. November was $204.4 million, averaging $10.8 million (19 deals);
and October was $176.1 million, averaging $5.9 million (30 deals).

Financing Activity Last Twelve Months

500.0 16.0

450.0 13.9
14.0
12.9
400.0

12.0

350.0 10.8

10.0
300.0 9.0 8.8
(US$m)

(US$m)
250.0 8.0
7.0 7.2
6.9
6.5
6.2
200.0 5.9
5.6 6.0

4.7
150.0

4.0

100.0

2.0
50.0

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

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

Dec-09 includes $180m Zynga investment

Figure 2. Financings, Last Twelve Months

Source. Company reports
 Page 4

Deal round-up for Januar y: The large deal highlights for the month include:

• Mochi Media – U.S.-based game designer – was acquired by China-based Shanda Games for $80 million.

• StudioNow – online video creation platform developer – was acquired by AOL for $36.5 million in cash/stock.

• Quantcast – a web analytics service – raised $27.5 million in its third round of financing.

• Boku – developer of mobile payment services in the virtual goods market – raised $25 million in its third round.

• Visible Technologies – online brand management solutions developer – raised $22 million in Series D financing.

• Guvera – Australian ad-based music distribution network – raised $20 million in its third round.

• 6 Waves – Chinese online game developer – raised $17.5 million in its first round of funding.

• Spiceworks – an ad-supported IT management software developer – raised $16 million in its third round of
financing.

• SMSGupShup – a popular social network in India – raised $12 million in its second round of funding.

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

450.0

400.0

350.0

300.0

250.0
Jan-10
(US$m)

Dec-09
Nov-09
200.0

150.0

100.0

50.0

0.0
Phoenix New

PowerReview
Mixer Labs
Motley Fool

AdMarvel

XIHA
PlayFish
Zynga
Mochi Media

Guvera

MobGold
SMSGupShu
Evernote

Gowalla

LiveMocha
SonicMule
wooga

Eventbrite
Bizo

Eyeka

Twilio

Beezag

Playfire

GlobalMotion

SocialMedia
Movik

AppNexus
Nival Network

Sway

Stylefeeder
StudioNow

Millennial

Living Social
Jajah

RockYou
Ku6
Youku

Groupon

Boku

Visible

Lala

Aggregate

CubeTree

kaChing

ChaCha
SeekingAlph
Pageonce

Curse

JanRain

Cloud
Article One

Blekko

Center'd
HootSuite
Sonico

Rekoo

Joonto
Spiceworks

Flurry

Gizmoz

5 Minutes

StockTwits

OneForty

Blippy

Graphic.ly

PBworks
Playdom
Friendster

SocialGO

Scoopler
Quantcast

Placecast

AlikeList

Tonchidot
SCVNGR

Grapeshot

Echo Nest

Joost
ReachLocal
Shanghai

Sezmi

Gogii

Gaikai

Rocket Fuel

Jelli

Jinni
BuyWithMe

Smaato

Credit Karma

SimpleGeo
Zoosk

Altruik

NuConomy

Appolicious

Adfonic
Lithium

Qunar.com

Genius.com
Alice.com

Prosper.com
Reframe It
6 Waves

Whiskey

WePay

Imeem
gWallet

Figure 3. Capital Market Activity, Last Three Months

Source. Company reports
 Page 5

A few sectors emerging as focus areas: Gaming, the sector that has taken a clear lead in terms of financing attention,
is matched by Social Networks with 12 transactions each in the past quarter. Analytics is in second place with nine
financings, followed by Advertising at seven financings (Figure 4). The $400 million acquisition of Playfish skews the
Gaming segment to the highest total financing figure.

Capital Market Activity by Sector - Last Three Months

900.0

800.0

700.0

600.0

500.0
(US$m)

400.0

300.0

200.0

100.0

838.0 210.7 148.5 126.8 109.5 79.7 54.0 51.4 51.2 43.7 41.3 41.1 25.0 16.8 16.0 15.0 13.4 12.7 12.5 12.5 10.0 10.0 8.0 8.0 6.0 5.3
0.0
Mobile Payment
Social Commerce
Gaming

Documents
Travel
Media

Mobile

Enterprise

Collaboration

Online Learning

Microblog
Music

Financial Services
Widget
SMS/Voice

Mobile Ad

Location-based

Infrastructure

Classified
Social Networks

Virtual Goods
Video

Advertising

Crowdsourced

Aggregation
Analytics

Content

SNS
# companies
12 2 5 7 12 9 2 5 3 5 5 5 1 4 1 1 3 4 1 4 1 3 1 1 1 2

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) has positively
diverged from the broader tech market (represented by the Nasdaq Composite Index) since Q1/09 (Figure 5).

Web 2.0 Index Price Performance

300

250

200

150

100

50

0
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

11/16/2009

11/30/2009

12/14/2009

12/28/2009

1/11/2010
Index: Web 2.0 (Market Cap) ^COMP - Share Pricing

Figure 5. Web 2.0 Price Performance

Source. Capital IQ
 Page 7

Decliners rule: Thirty-seven companies in our universe had negative stock price performances (averaging -7.7%) over the
past week (for stocks with prices greater than $1) (Figure 6), while 13 companies showed positive 1-week returns
(averaging +10.5%).

1 Week P rice P erformance

V elti Plc 44.5%
A Q Interac tive, Inc. 23.6%
Webz en Inc. 14.6%
Ngi G roup Inc. 14.5%
TheS treet. com, Inc. 9.1%
Eolith Co. Ltd. 7.7%
PNI Digital Media Inc. 7.4%
S park Netw orks , Inc. 6.1%
Quepas a Corp. 5.3%
HanbitS oft, Inc. 2.3%
A s knet A G 1.5%
G ree, Inc. 0.2%
United Online Inc. 0.1%
Gravity Co., Ltd -0.6%
Fluid Mus ic Canada, Inc. -1.2%
Openw ave S y s tems Inc. -1.3%
My riad G roup A G -1.6%
G iant Interactive G roup, Inc. -1.6%
XING A G -2.6%
Frogs ter Interac tive Pictures A G -2.8%
G ameOn Co Ltd. -3.1%
Open Tex t Corp. -3.2%
Modern Times G roup Mtg A B -3.5%
A c toz S oft Co., Ltd. -4.3%
IA C/InterA ctiveCorp. -4.8%
S ohu.com Inc. -5.0%
Changy ou.com Limited -5.1%
V alueClick Inc. -5.3%
Mix i, Inc. -5.8%
Y nk K orea Inc. -6.5%
S hutterf ly , Inc. -7.4%
Y D Online Corp. -7.6%
DA DA S pA -7.6%
G igaMedia Ltd. -8.0%
S handa Interactive -8.5%
Cy berplex Inc. -8.8%
G ama nia Digital Entertainment -8.9%
Neteas e.c om Inc. -9.2%
CDC Corp. -9.4%
Perf ect World Co., Ltd. -9.9%
K ings of t Co. Ltd. -10.1%
NEOWIZ G ames Corporation -10.7%
Chines e G amer International -12.0%
Tencent Holdings Ltd. -12.1%
Northgate Technologies Limited -12.8%
Tree.Com, Inc. -13.5%
NetDragon WebS oft, Inc. -13.7%
S K Communications Co., Ltd. -14.3%
The9 Limited -14.9%
Lingo Media Corporation -26.9%
-0.4 -0.3 -0.2 -0.1 0 0.1 0.2 0.3 0.4 0.5

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
VOIS , Inc . (OTC B B : VOIS )
NetDragon WebS oft, Inc . (S E HK : 777)
Ac celerize New Media, Inc.
(OTC B B : AC L Z)
Open Text C orp. (Nas daqG S : OTE X)
DigitalTown, Inc . (OTC B B : DG TW )
MOK O.mobi L imited (AS X: MK B )
Figure 7a. Key Developments
Source. Capital IQ
Headline
V OIS , Inc. Announces E xecutive C ha nges
NetDra gon W ebS oft, Inc. P rovides E a rnings
G uida nce for the F ourth Q uarter a nd F ull Y ea r ended December 31, 2009 ma y experience a very s ubs ta ntial decline as compared with the corres ponding quarter in 2008,
E nded December 31, 2009
Accelerize New Media , Inc. L aunches Affilia te
Ma rketing S oftwa re S ervices
O pen T ext R elea s es V ignette C ontent
Ma na gement 8, New E rgonomic Des ign
E mpowers Marketers with E nga ging W eb
E xperiences
Digita lT own Na mes Dona ld M. F is her to Its
B oa rd
MO K O . mobi S eeks Acquis itions
Page 8
Notes
on J anuary 16, 2010, Mr. G ary S chultheis , C hief E xecutive O fficer and a member of the B oa rd of Directors of V O IS , Inc.
res igned his pos itions a s an executive officer and director of the compa ny, the B oa rd of Directors a ppointed Mr. R obert
Druza k to the B oa rd to fill the vacancy res ulting from Mr. S chultheis ' res igna tion a nd a ppointed Mr. Druza k P res ident and
C hief E xecutive O fficer of V O IS . T here were no dis agreements between the compa ny a nd Mr. S chultheis on a ny ma tter.
R obert Druza k. Mr. Druza k, 55, ha s s erved as a V ice P res ident of IceW E B , Inc. s ince Ma rch 2007.
T he boa rd of directors of NetDra gon W ebS oft, Inc. expects tha t the net profit of the group for the fourth quarter a nd the year
the three months ended S eptember 30, 2009 and the yea r ended December 31, 2008 a lthough revenue of the group for the
yea r ended December 31, 2009 is expected to increas e as compared with the yea r ended December 31, 2008. T he B oa rd
cons iders tha t the expected decline in net profit is ma inly due to the ris e in development cos t of new product a nd expans ion
of new bus ines s es .
Accelerize New Media, Inc. announced that it ha s expanded into the ra pidly growing performance-ba s ed s oftware bus ines s
through the formation of its new C AK E MAR K E T ING S O F T W AR E DIV IS IO N. T he compa ny's proprieta ry s oftwa re
s trea mlines the mana gement of large s ca le online ma rketing ca mpa igns for a ffilia te marketers a nd a dvertis ers , while its
unique a bility to s implify online ma rketing efforts generates immedia te cos t s a ving for clients . T he s oftwa re is a vailable for a
monthly licens ing fee to a ffiliate ma rketers , advertis ing agencies a nd corpora tions us ing a s oftware-a s -a -s ervice (S aa S )
model. Accelerize New Media , Inc. 's technology is one of the premier s olutions currently a vailable for automating the entire
proces s of acquiring and mana ging a ffilia te ma rketing tra ffic on the front end, while va lida ting a nd dis tributing qua lified
convers ions to ta rgeted buyers on the ba ck end. Its s ta te-of-the-art fra ud ma na gement tools , coupled with s ea mles s
integra tion of s ervices , allows for greater efficiency, a na lytical ca pabilities and an increa s ed return on inves tment.
Open T ext C orp. announced the releas e of V ignette C ontent Ma nagement 8, a n enterpris e-s ca le web content ma nagement
s olution tha t gives ma rketers broa d new ca pa bilities to us e the W eb a s a s tra tegic force to drive campaigns , cus tomer
convers ion a nd loya lty, a nd ultimately profita bility. V ignette C ontent Ma na gement 8 introduces a new ergonomic des ign that
ma kes it ea s y for bus ines s us ers to create webs ites , micro s ites a nd landing pa ges on-demand, while s ta ying within
branding and technica l guidelines . T he ergonomic des ign caters to s pecific pers onas in marketing or other depa rtments ,
providing tools , des igns a nd other res ources bas ed on their roles . T his critica l functiona lity brings s peed a nd flexibility to
ma rketing tea ms -- a new level of a gility tha t can make the difference in competitive efforts to rea ch cus tomers via the W eb.
DigitalT own, Inc. named Dona ld M. F is her to its B oa rd of Directors . Don is the Director of S tra tegic S ervices , Media +
Marketing, T he Active Network. Don is a s ea s oned marketing a nd s ales executive with s ubs ta ntia l experience in bus ines s
to bus ines s a nd bus ines s to cons umer marketing.
MO K O . mobi Limited is looking for acquis itions opportunities . T he compa ny a nnounced on J anuary 21, 2010 tha t it has
ceas ed evalua ting further corpora te tra ns a ctions . Ma naging Director of MO K O . mobi, Ia n R odwell s aid, “T he compa ny is
focus ed on making s ignifica nt advances in this
rega rd in 2010. ” Additiona lly, he s a id, “W hils t the priority is to grow revenue, the compa ny will always cons ider opportunities
for a cquis itions a nd other corporate tra ns actions tha t will enable it to leverage its exis ting ba s e. "

K ey Developments
C ompany
Draper Fis her J urvets on; F idelity As ia
Ventures ; G G V C apital; Hurray!
Holding C o. L td.; Hurray! Holding C o.
L td., P rior to R evers e Merger with
K u6(B eijing) Information Technology
L td. (Nas daqG M: HR AY); S handa
Interactive E ntertainment L td.
(Nas daqG S : S NDA)
C DC C orp. (Nas daqG S : C HIN.A); C DC
G ames L imited
W izzard S oftware C orporation
(AME X: WZE )
G iant Interactive G roup, Inc .
(NYS E : G A)
B eyond C ommerc e, Inc .
(OTC B B : B YOC )
S handa Interac tive E ntertainment L td.
(Nas daqG S : S NDA)
S NAP Interactive, Inc. (OTC B B : S TVI)
TheS treet.c om, Inc . (Nas daqG M: TS C M) T hes treet. C om, Inc. R eports E a rnings R es ults
TheS treet.c om, Inc . (Nas daqG M: TS C M) T heS treet. C om, Inc. R eports Una udited
Figure 7b. Key Developments
Source. Capital IQ
Headline
K u6. com completed the a cquis ition of Hurra y!
Holding C o. L td. (Nas da qG M: HR AY ) from
S ha nda Intera ctive E ntertainment Ltd.
(Na s da qG S : S NDA) a nd other s hareholders in
a revers e merger trans a ction.
C DC T o S pin O ff C DC G a mes ; P la ns L is ting In
2010
W izza rd S oftwa re C orporation a nd
C ommunications a nd P ower E ngineering Inc.
S igns Long-T erm Agreement to P rovide AT & T
Natura l V oices T ext-T o-S peech
G ia nt Intera ctive T o S eek S ubs idia ry P ublic
L is ting
B eyond C ommerce, Inc. Announces
R es ignation of P a ul Morris on as Director
S ha nda Intera ctive E ntertainment Ltd.
Announces Ma na gement C ha nges
S NAP Intera ctive, Inc. , 3 : 1, S tock S plit or
S ignifica nt S tock Dividend, J a n-25-2010
for the T hird Q uarter E nded S eptember 30,
2009; R es ta tes E a rnings R es ults for the
S econd a nd T hird Q uarters of 2008
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 R evenue G uida nce for the
F ourth Qua rter E nded December 31, 2009
Page 9
Notes
K u6. com agreed to a cquire Hurray! Holding C o. L td. (Na s da qG M: HR AY ) from S ha nda Interactive E ntertainment Ltd.
(Na s daqG S : S NDA) a nd other s ha reholders in a revers e merger tra ns action on November 27, 2009. Hurray! Holding will
is s ue 723. 7 million ordina ry s ha res including 44. 4 million America n Depos itary S ha res , ea ch repres enting 100 ordina ry
s hares . All of the outs tanding employee s tock options of K u6 will be ca ncelled. After the completion of the merger, K u6 will
reta in its bra nd na me.
C ertain executive officers and s elling s ha reholders of K u6 intend to enter into lock-up a greements for a period of 180 da ys
to two yea rs a fter clos ing with res pect to the Hurra y! s ha res tha t they will receive in the merger. T he deal, s ubject to
approva l of option holders of K u6 a nd s ha reholders of Hurra y! Holding, has been a pproved unanimous ly by B oard of
Directors of Hurra y! Holding. As of J a nua ry 6, 2010, the s hareholders of Hurra y! Holding a pproved the tra ns a ction. T he
tra ns a ction is expected to clos e in the firs t qua rter of 2010.
C DC C orp. plans to s pin off C DC G a mes Limited; 17173. com reported quoting C DC G a mes ’s G eneral Ma na ger S un
J ingqing on J a nua ry 20. T he company is planning a s epa ra te lis ting for C DC G a mes in 2010.
W izzard S oftwa re and C ommunications a nd P ower E ngineering Inc. a nnounced tha t they have s igned a long-term
agreement for W izzard to provide AT &T Na tura l V oices text-to-s peech to be the new voice of the NO AA/NW S W ea ther and
W a rning S ervices , in s upport of the W ea ther R a dio Improvement P rogra m (W R IP ) tha t wa s awa rded to C ommP ower in
2009. T he W R IP cons is ts of a 3-year bas e period a nd 2 yea rs of follow-on maintenance, whereby C ommP ower, with
tea mma te Ha rris C orpora tion, will develop a nd deploy a nationwide (and beyond) dis s emination s ys tem that ra pidly a nd
relia bly delivers a round-the-clock weather, all-ha za rds and other emergency information, as well as live a udio emergency
announcements to the public, media , la w enforcement and loca l/s ta te emergency ma na gers . T he P rogra m will enha nce the
U. S . Depa rtment of C ommerce (DO C ), Na tional O cea nic a nd Atmos pheric Adminis tration (NO AA), Nationa l W ea ther
S ervice (NW S ) that provides wea ther forecas ts , wa tches , warnings , a nd other emergency mes s a ges to the public a nd
emergency ma na gers via the NO AA W eather R a dio/All-Ha zards (NW R ) s ys tem a nd NO AA W eather W ire S ervice
(NW W S ).
G iant Interactive G roup, Inc. s a id at the C hina 2009 a nnual ga me conference tha t it would encoura ge the independent
lis ting of its s ubs idia ries , a ccording to reports on T echs ina . com. cn. T he move marks new efforts for the company to
s trengthen its revenue a fter a reported decline in earnings from its prima ry ga me, ZT O nline, in qua rter two of 2009. T he
report quoted Liu W ei, the company pres ident, s a ying tha t the ba s ic requirement for a s ingle lis ting wa s a n online ga mer
popula tion number of 500, 000 for ea ch game. B es ides this L iu s a id, "W e will continue to explore the free billing game
opera tion mode", which, by repla cing previous time and item cha rging modes , lowers the thres hold for ga me pla yers a nd in
turn enla rged its player s cope.
On J anuary 22, 2010, B eyond C ommerce, Inc. ha s a ccepted the res igna tion, dated J anuary 21, 2010, of P a ul Morris on a s a
member of the C ompa ny's B oa rd of Directors . Mr. Morris on ha s s epa ra ted his relations hip from the C ompa ny to purs ue
other bus ines s opportunities . Mr. Morris on had no dis a greements with the C ompa ny on a ny ma tter rela ting to the
C ompa ny's opera tions , policies or pra ctices .
S ha nda Intera ctive E nterta inment L td. a nnounced tha t Mr. Q unzha o T a n ha s res igned as the pres ident of the compa ny s o
tha t he can s pend more time on his roles a s cha irma n a nd C E O of S ha nda G a mes L imited. Mr. T a n will rema in as a
member of the C ompa ny's boa rd of directors . Mr. T ia nqia o C hen, the cha irma n of the boa rd a nd chief executive officer, will
as s ume Mr. T a n's res pons ibilities a s pres ident of the C ompa ny.
S NAP Intera ctive, Inc. , 3 : 1, S tock S plit or S ignifica nt S tock Dividend, J a n-25-2010
T heS treet. com, Inc. reported ea rnings res ults for the third quarter ended S eptember 30, 2009. T he compa ny reported a net
los s of $1. 4 million, or 5 cents per s hare attributa ble to common s hareholders , in the third qua rter of 2009. R evenue
declined 11% in the period to $15. 2 million.
T he res tates ea rnings res ults for the s econd a nd third qua rters of 2008. F or the s econd quarter, the company reported
res ta ted profit of $1. 1 million or 3 cents a s ha re on res tated revenue of $18. 4 million.
T he compa ny reported a res ta ted net los s of $700, 000, or 3 cents a s hare, in the third quarter of 2008. R es ta ted revenue
was $17 million in the third qua rter of 2008. T he res ta tements correct errors rela ted to the timing of reported revenue in the
former P romotions . com unit. T he a djus tments will res ult in reduced revenue in certa in qua rters , increa s ed revenue in others
and reduced net income and net los s in other qua rters . T heS treet. com noted that it ma inta ined pos itive a djus ted ea rnings
before income ta x, deprecia tion and amortiza tion every qua rter except the firs t, a nd even the firs t qua rter wa s pos itive on a
pro forma ba s is excluding P romotions . com.
T heS treet. com, Inc. reported unaudited cons olida ted ea rnings res ults for the third quarter a nd nine months ended
S eptember 30, 2009. T he company recorded revenue of $15. 2 million in the third qua rter of 2009, a reduction of 11% a s
compa red to a res tated $17. 0 million in the third qua rter of 2008. T he company had a net los s a ttributa ble to common
s tockholders of $1. 5 million in the third qua rter of 2009, a s compa red to a res tated net los s of $0. 7 million in the prior year
period. T he compa ny reported bas ic and diluted net los s per s hare attributa ble to common s tockholders of $0. 05 a nd $0. 05
res pectively, in the third quarter of 2009, as compared with a res ta ted $0. 03 a nd $0. 03, res pectively, in the prior yea r
period. Adjus ted E B IT DA for the third qua rter of 2009 wa s $1. 7 million a s compared to a res ta ted $1. 5 million for the prior
yea r period. E B IT DA wa s $0. 3 million. O pera ting los s wa s $1. 7 million.
T he compa ny a ls o announced certain es timated res ults for the qua rter ended December 31, 2009. T he company expects
its pa id s ervices revenue will be in the ra nge of $9. 5-$9. 7 million, as compared to $9. 9 million in the prior yea r
period, with the decline prima rily reflecting the yea r-over-year decline in paid s ervices bookings experienced in the firs t
ha lf of the yea r. T he compa ny expects its ma rketing s ervices revenue, excluding the P romotions . com s ubs idia ry, will
be in the ra nge of $5. 5-$5. 6 million, a s compa red to $5. 3 million in the prior yea r period.
 Page 10

VALUATION
Gaming companies lead market-cap charts: Twelve companies in our Web 2.0 universe top US$1 billion in market
capitalization (Figure 8). Fifty-six of the 89 companies have market caps under US$100 million, with 36 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$35.1 billion.

Market C ap ($US mm)

Tenc ent Holdings Ltd. 35095. 5
Neteas e. c om Inc . 4382. 4
S handa Interac tive Entertainment Ltd. 3259. 9
Modern Times G roup Mtg A B 3177. 3
G ree, Inc . 2837. 7
IA C/InterA c tiveCorp. 2679. 0
Open Tex t Corp. 2268. 8
S ohu. c om Inc . 2163. 2
Perf ec t World Co. , Ltd. 1881. 8
Changy ou. c om Limited 1801. 8
Giant Interac tive G roup, Inc . 1664. 5
Mix i, Inc . 1045. 3
Chines e G amer International 997. 4
K ings of t Co. Ltd. 902. 3
V alueClic k Inc . 822. 4
NEOWIZ G ames Corporation 645. 6
United Online Inc . 578. 6
S K Communic ations Co. , Ltd. 552. 8
S hutterf ly , Inc . 420. 8
NetDragon WebS of t, Inc . 284. 2
G ungHo Online Entertainment, Inc . 279. 4
G amania Digital Entertainment Co., 266. 6
CDC Corp. 259. 7
XING A G 224. 7
My riad G roup A G 209. 8
Openw ave S y s tems Inc . 192. 1
The9 Limited 182. 1
OA O R B C Inf ormation S y s tems 180. 3
V elti Plc 173. 7
GigaMedia Ltd. 157. 0
Webz en Inc . 147. 0
A c toz S of t Co. , Ltd. 127. 8
DA DA S pA 121. 4
Fluid Mus ic Canada, Inc . 99. 1
Y D Online Corp. 88. 3
Tree. Com, Inc . 84. 8
HanbitS of t, Inc . 78. 8
TheS treet.c om, Inc . 77. 1
G ameOn Co Ltd. 77. 1
NeuLion Inc orporated 73. 1
Frogs ter Interac tive Pic tures A G 70. 1
Cy berplex Inc . 69. 1
G eoS entric Oy j 64. 6
S park Netw orks , Inc . 60. 7
PNI Digital Media Inc . 56. 8
Eolith Co. Ltd. 52. 3
A Q Interac tive, Inc . 52. 0
G ravity Co., Ltd 46. 4
DXN Holdings B hd 46. 3
Quepas a Corp. 38. 2
Ngi G roup Inc . 36. 7
NeXplore Corporation 30. 7
Multiplied Media Corporation 29. 2
A s knet A G 23. 2
S oc ialw is e, Inc . 21. 9
En2G o International, Inc . 21. 4
Northgate Tec hnologies Limited 19. 8
Wiz z ard S of tw are Corporation 19. 8
LookS mart, Ltd. 17. 0
A c c eleriz e New Media, Inc . 16. 1
Dolphin Digital Media, Inc . 14. 2
J umbuc k Entertainment Limited 13. 8
Y nk K orea Inc . 13. 5
MOK O. mobi Limited 13. 0
Lingo Media Corporation 12. 7
V OIS , Inc . 10. 9
S pec trumDNA , Inc . 9. 7
R eal V alue Es tates , Inc . 9. 6
is eemedia Inc . 9. 1
B right Things plc 8. 8
Magnitude Inf ormation S y s tems Inc . 8. 4
DigitalTow n, Inc . 7. 9
S ahara Media Holdings , Inc . 7. 8
B roadWebA s ia Inc . 6. 8
Worlds . c om Inc . 4. 8
UOMO Media, Inc 3. 7
DigitalPos t Interac tive, Inc . 3. 5
Oriented Media G roup B erhad 3. 1
CornerWorld Corporation 2. 9
B etaw ave Corporation 2. 6
Unis erve Communic ations Corp. 2. 4
A s s oc iated Media Holdings Inc . 2. 1
B igs tring Corp. 1. 4
B ey ond Commerc e, Inc . 1. 4
S NA P Interac tive, Inc . 1. 1
The Parent Company 0. 4
S oc ial Media V entures Inc . 0. 0
Unilava Corporation 0. 0
InternetA rray , Inc . 0. 0
0 1, 000 2,000 3, 000 4,000 5, 000 6,000

Figure 8. Market Cap Ranking

Source. Capital IQ
 0. 0
5. 0
10. 0
15. 0
20. 0
25. 0
30. 0
35. 0
40. 0
45. 0
(x)
B eta wav e C orporation

# Companies
U nilav a C orporation

0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0

Source. Capital IQ
Source. Capital IQ

revenue).
G a meO n C o Ltd.

1
HLSE O AO R B C Information S y s tems

16.0 14.8

6
OTCPK As k net AG

14.8
T heS treet.com, Inc .

3
SEHK

10.6
Figure 9. TEV/Revenue Ranking
T he P a rent C ompany

2
ASX T ree.C om, Inc.

8.5
P erfect World C o., Ltd.

2
GTSM
N orthgate T echnologies L imited
TSX

7.4 6.3
AQ Intera ctive, Inc .
OTCBB J umbuc k E nterta inment L imited
U nis erve C ommunications C orp.

3 20 5
TSE

6.2 5.1
C y berplex Inc .

5
TSXV O penwave S y s tems Inc .

3
G igaMedia Ltd.

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

XTRA
C DC C orp.

1
SWX

4.2 3.4 3.3

Ac toz S oft C o. , Ltd.

8
KOSE DADA S pA
AMEX DXN Holdings B hd

0.0 0.0 0.0 0.0 0.1 0.2 0.2 0.3 0.3 0.4 0.4 0.4 0.4 0.4 0.5 0.5 0.7 0.7 0.7 0.70.8
IAC /InterAc tiveC orp.
NasdaqGS
United O nline Inc .

2 14 1
OSE B ey ond C ommerc e, Inc.

2.8 2.6 2.4 2.0

Y nk K orea Inc .

1
OM

1.9
O riented Media G roup B erha d

Average TEV/LTM Revenue - By Exchange

2
KLSE

1.8
H anbitS oft, Inc .

1
CM InternetArray , Inc .

0.7
S pa rk N etwork s , Inc .

1
BSE
V alueC lic k Inc .

4
NasdaqGM

0.4 0.2
C ornerWorld C orporation

1
RTS S hutterfly , Inc .

0.0
NetDra gon WebS oft, Inc .
G a mania Digital E ntertainment C o., Ltd.
0.8 1.0 1.0 1.1 1.1 1.1 1.2 1.2 1.3 1.4 1.4 1.6 1.6
Y D O nline C orp.
Modern T imes G roup Mtg AB
(x) V elti P lc
G ungHo O nline E ntertainment, Inc.
NeuLion Inc orporated

0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
T E V/L T M R evenue (x)

# Companies
P N I Digital Media Inc.
1.9 2.0 2.0 2.3 2.3

1
Finland S K C ommunica tions C o., Ltd.

14.8
XIN G AG

2
Australia O pen T ex t C orp.

8.5
N E O WIZ G ames C orporation
China

10
6.8
S ohu.com Inc .
United
2.72.8 2.9 2.9 3.2 3.3

My riad G roup AG

35
States Webz en Inc .
3.6

Wiz z ard S oftware C orporation

exclude multiples greater than 50x. Twenty-four companies have multiples under 1.5x.

1
Hong Kong

6.0 5.8
UO MO Media, Inc

3
Taiwan S ocial Media V entures Inc .
DigitalP os t Intera ctive, Inc.
4.14.2 4.6 4.8

6
Japan is eemedia Inc .

5.1 4.5
Acceleriz e New Media , Inc .

3
Germany

3.4
5.0 5.1 5.8

C hangy ou.com L imited

K ings oft C o. Ltd.

9
Canada

3.3
Mix i, Inc .
6.0 6.7
7.3

F rogs ter Intera ctiv e P ictures AG

1
Switzerland
E olith C o. Ltd.
South Lingo Media C orporation
8.6 9.0

9
3.3 2.8
Korea C hines e G amer Interna tional

1
Sweden G ree, Inc .

1.9
13.213.3

G eoS entric O y j
14.8

Average TEV/LTM Revenue - By Country

2
Malaysia F luid Mus ic C a nada , Inc.

1.8
MO K O .mobi L imited
16.216.5

1
Italy T encent Holdings Ltd.
24.3

As s ociated Media Holdings Inc .

36.0

1
India

0.7 0.4
B igs tring C orp.
38.8

B right T hings plc

1
40.5

Russia

0.0
Page 11

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

companies (35), trading at an average of 6.0x revenue (Figure 11). Nine of the companies are Canadian (average 3.3x
(OTCBB:BSGC) at 38.8x, and Associated Media Holdings Inc. (OTCPK:ASMH) at 36.0x. The median is 1.6x. Note that we

number of companies (20), trading at an average multiple of 6.2x. On a geographic basis, the United States has the most
week) (Figure 9). Three companies trade above 25x revenue – Bright Things plc (AIM:BGT) at 40.5x, Bigstring Corp.
TEV/Revenue (LTM) averages 5.1x: The overall average TEV/Revenue (LTM) multiple for our group is 5.1 (vs. 4.9x last
 Page 12

TEV/EBITDA (LTM) averages 12.4x: The average multiple for the 40 companies with positive EBITDA (and multiples
under 100x) is 12.4x LTM EBITDA (vs. 11.9x last week), led by Tencent Holdings Ltd. (SEHK:700) at 47.5x (Figure 12).
Fourteen companies have EBITDA multiples under 7x. The median multiple is 9.5x.

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

50. 0 47. 5
46.2
45. 0 42. 0

40. 0

35. 0 32. 3

30. 0

25. 0 22. 7 22. 9

20. 3
20. 0 18. 1
14. 9
15. 0 12.6 12. 9 13. 4 14. 0
10. 9 11. 1 11. 4 11. 5
9. 2 9. 5 9. 5 9. 6 9. 6 10. 2
10. 0 7. 3 7. 4 8.1
6.1 6. 5
4. 7 5. 1 5. 1 5. 4 5. 7
5. 0 3. 2 3. 9 3. 9
0. 1 0.3 0. 6 1. 0
0. 0

NE O WIZ G ames C orporation

J umbuc k E ntertainment L imited

G ungH o O nline E ntertainment, Inc .

G amania Digital E ntertainment C o. , Ltd.

P NI Digital Media Inc .

C hines e G amer International

U nis erve C ommunic ations C orp.

O AO R B C Information S y s tems

DXN H oldings B hd

C hangy ou. c om L imited

G ameO n C o L td.

T ree. C om, Inc .

C DC C orp.

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

Modern T imes G roup Mtg AB
U nited O nline Inc.

T heS treet. c om, Inc.

O pen T ex t C orp.
C y berplex Inc.
NetDragon WebS oft, Inc.

V alueC lic k Inc.

S park Network s , Inc.

Y D O nline C orp.

S ohu. com Inc.

AQ Interac tive, Inc.

IAC /InterAc tiveC orp.

E olith C o. L td.
Mix i, Inc.

G ree, Inc.

T enc ent H oldings L td.

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

Y nk K orea Inc.

O penwave S y s tems Inc.

Webz en Inc.
V elti P lc

S hutterfly , Inc.

K ings oft C o. L td.

DADA S pA
Ac toz S oft C o. , L td.

Figure 12. TEV/EBITDA Ranking

Source. Capital IQ

TEV/EBITDA (LTM) by country/exchange: Figure 13 shows the average TEV/EBITDA multiples by stock exchange. The
OTCBB has the largest number of companies (20), trading at an average multiple of 5.1x. On a geographic basis, the
United States has the most companies (35), trading at an average of 8.3x EBITDA (Figure 14). Nine of the companies are
Canadian (average 17.6x EBITDA).

Average TEV/LTM EBITDA - By Country

Average TEV/LTM EBITDA - By Exchange
20.0
35.0 29.5 18.5
18.0
30.0
16.0 17.6
25.0 14.0
16.1
20.0 22.4 12.0 14.1 13.4
(x)

17.6 12.1
(x)

15.0 16.1 10.0 10.2

13.913.4 12.9 9.5
10.2 9.2 8.1 8.0 8.3
10.0 7.7 6.0 8.1
6.3 5.7 5.4 5.1 3.9
5.0 1.0 5.4
4.0
0.0 0.3 2.0 0.3
OTCPK

OTCBB
GTSM

NasdaqGM
SEHK
KOSE

TSE

OSE

NasdaqGS

RTS
OM

CM
XTRA

KLSE

AMEX

TSX
TSXV

ASX

0.0 1.0
Germany
Canada

China

Japan

Hong

United

Malaysia

Russia
Italy
South
Korea

Kong

States
Taiwan

Australia
Sweden

# Companies 5 3 8 2 6 1 5 3 1 2 14 4 2 1 20 3 2 1
# Companies 9 9 3 10 1 6 3 1 35 2 1 2 1

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

Source. Capital IQ
 Page 13

P/E (LTM) averages 22.8x: The average multiple for the 33 companies with positive earnings (and multiples under 100x)
is 22.8x LTM EPS (vs. 23.2x last week), led by W ebzen Inc. (KOSE:A069080) with a 77.3x multiple (Figure 15). Twelve
companies have P/E multiples under 10x. The median is 17.2x.

P /E L T M (x)

90.0

80.0 77.3
74.8

70.0
60.8
60.0
53.5 53.7
49.0 49.5
50.0

40.0
32.0
30.0 30.1
27.6
30.0
19.4 19.8 20.1
20.0 17.2 17.3 18.0
13.8
11.4 12.2 13.2
8.9
10.0 6.0 6.2 6.6 7.9
2.1 2.1 2.3 2.4 3.8
0.0 1.8
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.

G ree, Inc.

Mix i, Inc.

T encent H oldings Ltd.

XING AG
P erfect World C o., Ltd.

H anbitS oft, Inc.

W ebz en Inc.
V elti P lc

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 (20), trading at an average multiple of 8.9x. On a geographic basis, the United States has
the most companies (35), trading at an average of 13.7x earnings (Figure 17). Nine of the companies are Canadian
(average 35.0x EPS).

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

45.0
60.0 41.0
53.7 40.0
50.0 35.0
40.0 42.0 30.0 35.0
36.8 30.1 28.1
31.4 25.0 27.7
30.1
(x)

30.0
(x)

28.8 28.1
20.0 21.3
20.0 20.1 19.8 17.2
15.0 17.2 13.7
10.6 8.9 13.0 12.2
10.0 6.0 10.0
3.8
0.0 1.8 0.0 5.0 3.8
OTCPK

OTCBB
GTSM

NasdaqGM
OSE

KOSE

TSE

SEHK

NasdaqGS
OM
XTRA

KLSE

AMEX

TSX

NYSE
ASX

0.0 2.1
Germany

Israel
Japan

Malaysia

Canada

United

China

Hong
South
Korea

Kong
States
Taiwan

Australia
Sweden

# Companies 1 8 5 3 3 2 2 2 6 1 14 20 3 2 1 4
# Companies 6 9 3 2 9 3 1 35 10 1 2 1

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

Source. Capital IQ
 Page 14

UPCOMING EVENTS

E arnings C alendar
C ompany Date Time Quarter C onf C all Details
Changyou.com Limited (NasdaqGS:CYOU) 1-Feb-10 7:00 a.m. EDT Q4/09 852-3002-1672
Sohu.com Inc. (NasdaqGS:SOHU) 1-Feb-10 8:30 a.m. EDT Q4/09 480-629-9724
Open Text Corp. (NasdaqGS:OTEX) 3-Feb-10 5:00 p.m. EDT Q2/10 800-814-4859
Shutterfly, Inc. (NasdaqGS:SFLY) 4-Feb-10 5:00 p.m. EDT Q4/09 816-581-1703
Openwave Systems Inc. (NasdaqGS:OPWV) 4-Feb-10 5:00 p.m. EDT Q2/10 877-941-1427
Tree.Com, Inc. (NasdaqGM:TREE) 5-Feb-10 11:00 a.m. EDT Q4/09 800-967-7184
IAC/InterActiveCorp. (NasdaqGS:IACI) 9-Feb-10 11:00 a.m. EDT Q4/09 http://www.iac.com/Investors
PNI Digital Media Inc. (TSXV:PN) 11-Feb-10 4:30 p.m. EDT Q1/10 888-300-8196

Figure 18. Earnings Calendar

Source. Capital IQ
 Page 15

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 16.1 0.56 -13.8% -13.8% 1.8% 0. 0% 60.0% -30.0%
A ctoz S oft C o. , L td. KR W A052790 K OS E 127.8 16, 500 -4.3% -8.8% -2.1% -33.2% 46.7% -54.2%
A Q Interactive, Inc. JPY 3838 TS E 52.0 87,500.00 23.6% 64.2% 85.4% 45.6% 150. 0% 0.0%
A s knet AG E UR XT R A :A5A XT R A 23.2 3.20 1. 5% 1.6% 0.9% 28.5% -15. 1% -22.3%
A s s ociated Media H oldings Inc. US D AS MH OT C P K 2.1 0.05 -2.0% 433.3% 242.9% 140.0% 860. 0% -93.7%
B eta wave C orpora tion US D B W AV OT C B B 2.6 0.09 -43.8% -25.0% 124.4% -18.2% -50. 0% -60.9%
B eyond C ommerce, Inc. US D B Y OC OT C B B 1.4 0.02 9. 1% 20.0% -73.3% -92.9% -97. 3% -98.7%
B igs tring C orp. US D BSGC OT C B B 1.4 0.02 -4.7% 12.6% -36.0% -25.3% 31.8% -60.7%
B right T hings plc GB P AIM:B G T A IM 8.8 0.02 -17.1% 47.8% 23.6% -8.1% 33.9% -32.0%
B roadW ebA s ia Inc. US D BWBA OT C P K 6.8 0.08 33.3% -11.1% 166.7% -65.2% -92. 1% -94.7%
C DC C orp. US D C H IN.A Nas da qG S 259.7 2.45 -9.4% 6.5% 3.4% -16.1% 210. 1% -37.5%
C ha ngyou.com Limited US D C Y OU Nas da qG S 1, 801.8 32.76 -5.1% -2.2% 2.3% -12.0% NM -32.3%
C hines e G a mer International TWD G T S M:3083 GTS M 997.4 377.50 -12.0% -8.4% -15.2% -14.9% 318. 1% -27.3%
C ornerW orld C orpora tion US D CW R L OT C B B 2.9 0.03 0. 0% 0.0% -50.0% -50.0% -88. 0% -92.7%
C yberplex Inc. C AD T S X: C X TS X 69.1 1.04 -8.8% -9.6% -25.7% -38.1% 197. 1% -47.7%
DADA S pA E UR C M:DA CM 121.4 5.20 -7.6% -11.0% -30.4% -13.0% -13. 3% -36.5%
DigitalP os t Intera ctive, Inc. US D DG LP OT C B B 3.5 0.04 14.3% -18.4% -11.1% -11.1% 100. 0% -59.6%
DigitalT own, Inc. US D DG T W OT C B B 7.9 0.29 -79.3% -71.3% -85.5% -85.5% -87. 4% -91.7%
Dolphin Digital Media, Inc. US D DP DM OT C B B 14.2 0.25 -7.4% 19.0% -41.9% -24.2% -64. 3% -67.1%
DXN Holdings B hd MY R DXN K LS E 46.3 0.69 -0.7% 23.2% 9.5% 68.3% 94.4% -8.0%
E n2G o International, Inc. US D E TGI OT C B B 21.4 0.90 76.5% 38.5% 50.0% -40.0% -47. 1% -82.0%
E olith C o. L td. KR W A041060 K OS E 52.3 770.00 7. 7% 30.5% 33.9% -1.3% 49.5% -33.6%
F luid Mus ic C anada, Inc. C AD T S X: F MN TS X 99.1 1.63 -1.2% -5.8% -9.4% 71.6% 307. 5% -24.2%
F rogs ter Intera ctive P ictures AG E UR FR G XT R A 70.1 19.00 -2.8% 8.9% 4.8% 40.7% 284. 6% -11.6%
G amania Digita l E ntertainment C o., L td. TWD 6180 GTS M 266.6 55 -8.9% 8.6% 11.0% -8.3% 156. 6% -19.6%
G ameO n C o L td. JPY 3812 TS E 77.1 73000.00 -3.1% 8.5% -16.0% -31.3% -39. 9% -45.1%
G eoS entric Oyj E UR G E O1V H LS E 64.6 0.05 0. 0% 0.0% 25.0% 25.0% 66.7% -16.7%
G ia nt Interactive G roup, Inc. US D GA NY S E 1, 664.5 7.35 -1.6% 4.9% -2.0% -6.3% 22.5% -23.2%
G igaMedia L td. US D G IG M Nas da qG S 157.0 2.88 -8.0% -9.4% -33.8% -38.9% -56. 2% -62.7%
G ra vity C o., Ltd US D GR VY Nas da qG M 46.4 2 -0.6% 16.8% 5.7% 9. 9% 132. 6% -36.5%
G ree, Inc. JPY T S E :3632 TS E 2, 837.7 5, 790 0. 2% -1.0% 11.8% 66.9% 91.1% -4.1%
G ungH o Online E ntertainment, Inc. JPY 3765 OS E 279.4 223, 200 1. 4% 41.7% 1.0% 2. 5% 91.1% -20.3%
H anbitS oft, Inc. KR W A047080 K OS E 78.8 4090.00 2. 3% 1.0% 12.7% -6.0% 30.5% -38.4%
IAC /InterA ctiveC orp. US D IA C I Nas da qG S 2, 679.0 20.30 -4.8% 2.6% 5.5% 12.7% 38.1% -8.9%
InternetArray, Inc. US D INAR OT C P K 0.0 0.00 -20.0% -33.3% -84.0% -71.4% -99. 8% -99.8%
is eemedia Inc. C AD IE E T S XV 9.1 0.18 -5.3% -7.7% 38.5% 125.0% 125. 0% -33.3%
J umbuck E ntertainment Limited AU D AS X: J MB AS X 13.8 0.31 0. 0% 3.3% -8.8% -11.4% -35. 4% -38.0%
K ings oft C o. L td. HK D 3888 S E HK 902.3 6.38 -10.1% 3.9% -16.4% -17.9% 133. 7% -32.6%
L ingo Media C orpora tion C AD T S XV :LM T S XV 12.7 1.06 -26.9% 11.6% 6.0% -7.8% 1.0% -32.9%
L ookS mart, L td. US D LO OK Nas da qG M 17.0 0.99 -7.5% -4.8% -21.4% -21.4% -27. 7% -36.5%
Ma gnitude Information S ys tems Inc. US D MAG Y OT C B B 8.4 0.02 0. 0% 0.0% 35.7% 216.7% -21. 2% -51.3%
Mixi, Inc. JPY 2121 TS E 1, 045.3 621, 000 -5.8% -18.8% -16.4% -5.5% 21.8% -28.2%
Modern T imes G roup Mtg AB SEK MT G B OM 3, 177.3 342 -3.5% -0.2% 6.6% 29.9% 139. 4% -7.4%
MO K O .mobi L imited AU D MK B AS X 13.0 0.12 -14.3% -22.6% 51.9% 60.0% 200. 0% -40.0%
Multiplied Media C orpora tion C AD T S XV :MMC T S XV 29.2 0.23 4. 5% 31.4% 27.8% 187.5% 187. 5% -13.2%
Myriad G roup AG C HF MY R N S WX 209.8 4.90 -1.6% 2.1% 8.9% 18.6% -10. 9% -20.8%
NE O W IZ G ames C orporation KR W A095660 K OS E 645.6 34, 800 -10.7% -12.3% -14.4% 12.3% 200. 0% -22.5%
NetDra gon W ebS oft, Inc. HK D 777 S E HK 284.2 4.17 -13.7% 5.3% -16.3% -29.8% 53.3% -41.7%
Netea s e. com Inc. US D NT E S Nas da qG S 4, 382.4 33.86 -9.2% -10.2% -5.2% -19.1% 78.1% -30.2%
NeuLion Incorpora ted C AD T S X: NL N TS X 73.1 0.65 -7.1% -1.5% -14.5% -19.8% 71.1% -50.0%
NeXplore C orpora tion US D NXP C OT C P K 30.7 0.55 0. 0% -12.7% -26.7% -21.4% -38. 9% -45.0%
Ngi G roup Inc. JPY 2497 TS E 36.7 27, 100 14.5% 8.4% -8.8% -17.3% -29. 2% -46.8%
Northgate T echnologies Limited INR 590057 BSE 19.8 26.25 -12.8% -4.9% -22.3% -34.9% -32. 7% -56.1%
O AO R B C Information S ys tems US D R BCI R TS 180.3 1.30 -7.1% -7.0% -13.3% 13.0% 322. 8% -23.5%
O riented Media G roup B erha d MY R OME DIA K LS E 3.1 0.08 -33.3% -33.3% 14.3% 0. 0% -63. 6% -63.6%
O pen T ext C orp. US D OT E X Nas da qG S 2, 268.8 40.24 -3.2% 0.2% 1.5% 10.3% 14.9% -5.6%
O penwa ve S ys tems Inc. US D OP W V Nas da qG S 192.1 2.30 -1.3% -0.9% -15.8% -21.8% 215. 1% -26.5%
T he P a rent C ompany US D K IDS . Q OT C P K 0.4 0.02 114.3% 400.0% 114.3% 0. 0% -50. 0% -62.5%
P erfect W orld C o., Ltd. US D PWRD Nas da qG S 1, 881.8 37.82 -9.9% -8.0% -15.7% 9. 5% 155. 4% -25.1%
P NI Digital Media Inc. C AD T S XV :P N T S XV 56.8 1.75 7. 4% 2.9% 7.4% 18.2% 4.8% -17.8%
Q uepa s a C orp. US D QP S A OT C B B 38.2 3.00 5. 3% 42.2% 122.2% 200.0% 63.0% -4.8%
R ea l V alue E s tates , Inc. US D R V LU OT C B B 9.6 1.50 20.0% 36.4% NM NM NM 0.0%
S ahara Media H oldings , Inc. US D S HH D OT C B B 7.8 0.25 0. 0% -37.5% -51.0% -91.7% -91. 7% -92.3%
S ha nda Interactive E nterta inment L td. US D S NDA Nas da qG S 3, 259.9 48.47 -8.5% -6.1% 8.4% 0. 8% 66.6% -25.4%
S hutterfly, Inc. US D S F LY Nas da qG S 420.8 16.39 -7.4% -9.9% 13.3% 11.3% 148. 0% -12.9%
S K C ommunications C o. , L td. KR W A066270 K OS E 552.8 15, 000 -14.3% 7.1% 97.4% 60.1% 102. 7% -18.5%
S NA P Intera ctive, Inc. US D S TVI OT C B B 1.1 0.10 0. 0% 0.0% 42.9% 50.0% -70. 0% -71.4%
S ocial Media V entures Inc. US D S MV I OT C P K 0.0 0.01 10.0% 37.5% -60.7% -98.7% -99. 6% -99.6%
S ocialwis e, Inc. US D S CLW OT C B B 21.9 0.46 -8.0% -6.1% -11.5% -40.3% 2.2% -54.9%
S ohu.com Inc. US D S O HU Nas da qG S 2, 163.2 56.25 -5.0% -0.7% -1.8% -7.5% 42.2% -22.2%
S pa rk Networks , Inc. US D LO V A ME X 60.7 2.95 6. 1% -1.7% 8.9% 23.4% 20.4% -12.5%
S pectrumDNA, Inc. US D S P XA OT C B B 9.7 0.20 25.0% 33.3% 100.0% 42.9% 100. 0% -55.6%
T encent H oldings Ltd. HK D 700 S E HK 35,095. 5 149 -12.1% -7.7% 1.8% 44.2% 208. 3% -15.5%
T he9 L imited US D NC T Y Nas da qG S 182.1 7.25 -14.9% -0.3% -8.2% -13.7% -52. 1% -56.1%
T heS treet.com, Inc. US D TS CM Nas da qG M 77.1 2.52 9. 1% 6.8% -6.3% 20.0% -7.7% -20.3%
T ree.C om, Inc. US D TR E E Nas da qG M 84.8 7.78 -13.5% -16.6% 3.9% -25.2% 96.0% -40.5%
U nilava C orporation US D UNLA OT C B B 0.0 0.15 -37.0% -51.7% NM NM NM -73.6%
U nis erve C ommunica tions C orp. C AD T S XV :US S T S XV 2.4 0.10 66.7% 100.0% 100.0% 0. 0% 25.0% 0.0%
U nited O nline Inc. US D UNT D Nas da qG S 578.6 6.84 0. 1% -5.7% -19.0% -21.4% 11.8% -27.7%
U OMO Media, Inc US D UO MO OT C B B 3.7 0.04 13.5% -16.0% -53.3% -76.7% -47. 5% -96.0%
V alueC lick Inc. US D V CLK Nas da qG S 822.4 9.60 -5.3% -3.1% -23.1% -16.4% 53.6% -31.1%
V elti P lc GB P VEL A IM 173.7 2.89 44.5% 44.5% 54.5% 74.6% 140. 8% -1.0%
V OIS , Inc. US D V O IS OT C B B 10.9 0.01 0. 0% -8.3% 57.1% 83.3% 46.7% -52.2%
W ebzen Inc. KR W K O S E : A069080 K OS E 147.0 14, 100 14.6% 15.1% 19.5% -0.7% 87.5% -31.9%
W izzard S oftwa re C orporation US D W ZE A ME X 19.8 0.37 5. 7% 0.0% -11.9% -24.5% -47. 9% -53.2%
W orlds .com Inc. US D W DDD OT C B B 4.8 0.09 0. 0% 0.0% -10.0% -30.8% -59. 1% -59.1%
XING A G E UR O1B C XT R A 224.7 29.60 -2.6% -2.1% -18.9% -2.1% -3.0% -22.1%
Y D Online C orp. KR W A052770 K OS E 88.3 6, 690 -7.6% -3.0% -8.7% -14.8% -8.1% -46.0%
Y nk K orea Inc. KR W A023770 K OS E 13.5 2, 870 -6.5% -17.8% -33.2% -48.2% -25. 6% -67.0%
H igh 114.3% 433.3% 242.9% 216.7% 860. 0% 0.0%
L ow -79.3% -71.3% -85.5% -98.7% -99. 8% -99.8%
Average 803.7 -0.7% 11.4% 8.2% 4.3% 57.4% -40.3%
Media n -3.1% -0.2% 0.9% -7.5% 32.8% -33.6%

Figure 19. Price Performance

Source. Capital IQ
 Page 16

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 16.1 5.1x - - - - - -
Actoz S oft C o., Ltd. G aming S outh K orea K OS E A052790 127.8 0.7x - 3. 2x - 17.3x - 1.8x
AQ Intera ctive, Inc. G aming J apan TS E 3838 52.0 0.4x - 8. 1x - - - 0.9x
As knet A G G aming G erma ny XT R A XT R A :A5A 23.2 0.1x - - - - - -
As s ocia ted Media Holdings Inc. G aming U nited S ta tes OTCP K AS MH 2.1 36.0x - - - - - -
B etawave C orpora tion Media U nited S ta tes OTCB B B W AV 2.6 0.0x - - - - - 1.8x
B eyond C ommerce, Inc. S ocial Networking U nited S ta tes OTCB B B YOC 1.4 1.0x - - - - - -
B igs tring C orp. Ins ta nt Mes s aging U nited S ta tes OTCB B BSGC 1.4 38.8x - - - - - -
B right T hings plc S ocial Networking U nited K ingdom AIM AIM:B G T 8.8 40.5x - - - - - 10.4x
B roadW ebAs ia Inc. S ocial Networking U nited S ta tes OTCP K BWBA 6.8 - - - - - - -
C DC C orp. G aming H ong K ong N as da qG S C HIN.A 259.7 0.7x 0.7x 11.5x 5.5x - 32.7x 11.0x
C hangyou.com Limited G aming C hina N as da qG S C Y OU 1,801.8 5.8x 4.9x 9. 5x 7.5x 12.2x 10.7x 9.4x
C hines e G amer Interna tional G aming T a iwa n GTS M G T S M:3083 997.4 13.2x - 22.7x - 30.0x - 14.4x
C ornerW orld C orporation C ontent U nited S ta tes OTCB B CW R L 2.9 1.3x - - - - - -
C yberplex Inc. A dvertis ing C ana da TS X T S X: C X 69.1 0.4x 0.4x 3. 9x 3.1x 6.0x 6.2x 2.4x
DA DA S pA S ocial Networking Italy CM C M:DA 121.4 0.7x - 5. 4x - - - -
DigitalP os t Interactive, Inc. C ontent U nited S ta tes OTCB B DG L P 3.5 4.8x - - - - - -
DigitalT own, Inc. S ocial Networking U nited S ta tes OTCB B DG T W 7.9 - - - - - - -
Dolphin Digital Media, Inc. S ocial Networking U nited S ta tes OTCB B DP DM 14.2 - - - - - - -
DXN Holdings B hd S ocial Networking Mala ys ia K LS E DXN 46.3 0.7x - 5. 1x - 6.6x - 0.9x
E n2G o International, Inc. S ocial Networking U nited S ta tes OTCB B E TGI 21.4 - - - - - - -
E olith C o. L td. G aming S outh K orea K OS E A041060 52.3 8.6x - 18.1x - - - 1.2x
F luid Mus ic C a nada, Inc. Media U nited S ta tes TS X T S X:F MN 99.1 16.2x 16.2x - - - - 7.0x
F rogs ter Interactive P ictures A G G aming G erma ny XT R A FR G 70.1 7.3x - - - - - 8.8x
G amania Digital E ntertainment C o., Ltd. G aming T a iwa n GTS M 6180 266.6 1.6x - 9. 6x - 27.6x - 3.3x
G ameO n C o Ltd. G aming J apan TS E 3812 77.1 0.0x - 0. 1x - 7.9x - 0.9x
G eoS entric Oyj Mobile F inland H LS E G E O1V 64.6 14.8x - - - - - -
G iant Interactive G roup, Inc. G aming C hina NY S E GA 1,664.5 - - - - 1.8x 15.2x 0.3x
G igaMedia Ltd. G aming T a iwa n N as da qG S G IG M 157.0 0.5x 1.0x - 19.6x 6.2x - 1.4x
G ravity C o., Ltd G aming S outh K orea N as da qG M GR VY 46.4 - - - - 0.0x - 0.0x
G ree, Inc. S ocial Networking J apan TS E T S E : 3632 2,837.7 13.3x - 22.9x - 49.0x - 23.3x
G ungH o O nline E nterta inment, Inc. Media J apan OS E 3765 279.4 2.0x - 9. 2x - 53.7x - 8.8x
Ha nbitS oft, Inc. G aming S outh K orea K OS E A047080 78.8 1.1x - - - 74.8x - 2.1x
IAC /InterActiveC orp. Media U nited S ta tes N as da qG S IAC I 2,679.0 0.8x 0.7x 12.6x 5.3x 11.4x 29.5x 1.3x
InternetA rray, Inc. Media U nited S ta tes OTCP K INA R 0.0 1.1x - - - - - -
is eemedia Inc. C ontent C ana da T S XV IE E 9.1 5.0x - - - - - -
J umbuck E ntertainment Limited S ocial Networking Aus tra lia AS X AS X:J MB 13.8 0.4x - 1. 0x - 3.8x - 1.2x
K ings oft C o. Ltd. G aming C hina S E HK 3888 902.3 6.0x - 14.9x - 19.8x - 4.8x
Lingo Media C orpora tion L earning C ana da T S XV T S XV : LM 12.7 9.0x - - - - - -
LookS ma rt, L td. Direct Marketing U nited S ta tes N as da qG M L OOK 17.0 - - - - - - 0.7x
Magnitude Information S ys tems Inc. S ocial Networking U nited S ta tes OTCB B MA G Y 8.4 - - - - - - -
Mixi, Inc. S ocial Networking J apan TS E 2121 1,045.3 6.7x - 20.3x - 53.5x - 6.9x
Modern T imes G roup Mtg AB Media S weden OM MT G B 3,177.3 1.9x - 13.4x - 17.2x - -
MOK O .mobi Limited S ocial Networking Aus tra lia AS X MK B 13.0 16.5x - - - - - 11.4x
Multiplied Media C orpora tion Mobile C ana da T S XV T S XV :MMC 29.2 - 7.1x - - - - 20.7x
Myriad G roup AG Mobile S witzerla nd SWX MY R N 209.8 3.3x - - - - - -
NE OW IZ G ames C orporation G aming S outh K orea K OS E A095660 645.6 2.9x - 10.9x - 32.0x - 16.2x
NetDra gon W ebS oft, Inc. G aming C hina S E HK 777 284.2 1.4x - 4. 7x - 13.8x - 1.5x
Netea s e.com Inc. G aming C hina N as da qG S NT E S 4,382.4 - - - - 2.4x 12.7x 0.7x
NeuLion Incorporated V ideo C ana da TS X T S X:NL N 73.1 2.3x - - - - - 9.7x
NeXplore C orporation C ontent U nited S ta tes OTCP K NXP C 30.7 - - - - - - -
Ngi G roup Inc. Media J apan TS E 2497 36.7 - - - - - - 0.7x
Northgate T echnologies Limited Direct Marketing India BS E 590057 19.8 0.4x - - - - - -
O AO R B C Information S ys tems Media R us s ia R TS R BCI 180.3 0.0x - 0. 3x - - - -
O riented Media G roup B erhad Media Mala ys ia K LS E O ME DIA 3.1 1.1x - - - - - 1.4x
O pen T ext C orp. C ollabora tion C ana da N as da qG S OT E X 2,268.8 2.9x 2.5x 11.1x 9.2x 49.5x 13.7x -
O penwave S ys tems Inc. Mobile U nited S ta tes N as da qG S OP W V 192.1 0.5x 0.5x 14.0x 4.4x - 32.4x 2.7x
T he P a rent C ompany Mobile U nited S ta tes OTCP K K IDS .Q 0.4 0.2x 0.2x - 12.9x - - -
P erfect W orld C o., Ltd. G aming C hina N as da qG S PWRD 1,881.8 0.3x 1.7x 0. 6x 3.2x 2.3x 11.0x 1.0x
P N I Digital Media Inc. Digita l Ima ging C ana da T S XV T S XV :P N 56.8 2.3x 2.0x 12.9x 6.2x - 10.9x 12.7x
Q uepa s a C orp. S ocial Networking U nited S ta tes OTCB B QP S A 38.2 - - - - - - -
R eal V a lue E s ta tes , Inc. Media Is ra el OTCB B R V LU 9.6 - - - - - - -
S a hara Media Holdings , Inc. Media U nited S ta tes OTCB B S HH D 7.8 - - - - - - 9.5x
S handa Interactive E nterta inment Ltd. G aming C hina N as da qG S S NDA 3,259.9 - - - - 2.1x 13.5x 0.3x
S hutterfly, Inc. Digita l Ima ging U nited S ta tes N as da qG S S FLY 420.8 1.4x 1.3x 11.4x 7.2x - - 2.5x
S K C ommunications C o., Ltd. S earch S outh K orea K OS E A066270 552.8 2.7x - 42.0x - - - -
S N AP Interactive, Inc. Dating U nited S ta tes OTCB B S TVI 1.1 - - - - 18.0x - 1.7x
S ocial Media V entures Inc. Dating U nited S ta tes OTCP K S MV I 0.0 4.6x - - - - - -
S ocialwis e, Inc. S ocial Networking U nited S ta tes OTCB B S CLW 21.9 - - - - - - -
S ohu.com Inc. G aming C hina N as da qG S S O HU 2,163.2 3.2x 2.8x 7. 4x 6.3x 13.2x 15.1x 3.9x
S park N etworks , Inc. S ocial Networking U nited S ta tes AME X L OV 60.7 1.2x - 5. 7x - 20.1x - 27.4x
S pectrumDN A, Inc. Media U nited S ta tes OTCB B S P XA 9.7 - - - - - - -
T encent Holdings Ltd. P orta l C hina S E HK 700 35,095.5 24.3x - 47.5x - 60.8x - 27.0x
T he9 L imited G aming C hina N as da qG S NC T Y 182.1 - - - - 2.1x - 0.1x
T heS treet.com, Inc. Media U nited S ta tes N as da qG M TS CM 77.1 0.2x 0.2x 6. 5x - - - 1.0x
T ree.C om, Inc. P orta l U nited S ta tes N as da qG M TREE 84.8 0.3x 0.3x 6. 1x 6.8x - - 1.3x
Unilava C orporation Media U nited S ta tes OTCB B U NLA 0.0 0.0x - - - - - 0.6x
Unis erve C ommunications C orp. S ocial Networking C ana da T S XV T S XV :US S 2.4 0.4x - 46.2x - - - -
United Online Inc. Media U nited S ta tes N as da qG S U NT D 578.6 0.8x 0.9x 3. 9x 3.5x - 5.2x -
UO MO Media, Inc Media C ana da OTCB B UO MO 3.7 4.2x - - - - - -
V a lueC lick Inc. Media U nited S ta tes N as da qG S V CLK 822.4 1.2x 1.3x 5. 1x 4.9x - 15.6x 4.4x
V elti P lc Media U nited K ingdom AIM VEL 173.7 2.0x - 9. 6x - 19.4x - 5.5x
V O IS , Inc. S ocial Networking U nited S ta tes OTCB B V OIS 10.9 - - - - - - -
W ebzen Inc. G aming S outh K orea K OS E K OS E :A069080 147.0 3.6x - 32.3x - 77.3x - 1.4x
W izzard S oftware C orporation P odca s ting U nited S ta tes AME X W ZE 19.8 4.1x - - - - - -
W orlds .com Inc. C ontent U nited S ta tes OTCB B W DDD 4.8 - - - - - - -
XIN G AG S ocial Networking G erma ny XT R A O1B C 224.7 2.8x - 10.2x - 30.1x - 6.5x
Y D Online C orp. G aming S outh K orea K OS E A052770 88.3 1.6x - 7. 3x - 8.9x - 2.6x
Y nk K orea Inc. G aming S outh K orea K OS E A023770 13.5 1.0x - 9. 5x - - - 0.6x
High 35,095.5 40.5x 16.2x 47.5x 19.6x 77.3x 32.7x 27.4x
Low 0.0 0.0x 0.2x 0. 1x 3.1x 0.0x 5.2x 0.0x
Average 803.7 5.1x 2.5x 12.4x 7.0x 22.8x 16.0x 5.7x
Median 56.8 1.6x 1.1x 9. 5x 6.2x 17.2x 13.6x 2.4x

Figure 20. Valuation Comparison

Source. Capital IQ
 Page 17

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 29 C hina 56, 945. 8 C hina 5,694. 6 C hina 4,496. 8 C hina 2, 262. 8 C hina 49. 0%
C hina 10 U nited S ta tes 5, 465. 2 S weden 3,266. 2 United S tates 3,752. 1 United S tates 393. 7 A us tralia 42. 8%
C a na da 9 J a pan 4, 440. 9 J apan 740. 1 S weden 1,942. 0 S weden 274. 4 T aiwan 37. 3%
S outh K orea 9 S weden 3, 266. 2 T aiwan 515. 6 C a na da 992. 4 J a pa n 213. 0 J apan 24. 3%
J a pa n 6 C anada 2, 538. 6 C anada 282. 1 S outh K orea 740. 1 C a na da 199. 5 S outh K orea 20. 1%
T a iwa n 3 S outh K orea 1, 845. 8 Hong K ong 237. 5 J a pa n 680. 8 S outh K orea 133. 5 S weden 14. 1%
G erma ny 3 T a iwa n 1, 546. 9 S witzerla nd 205. 8 T a iwa n 404. 6 T a iwa n 65. 0 Italy 13. 1%
Aus tralia 2 G ermany 318. 0 S outh K orea 205. 1 Hong K ong 334. 2 Ita ly 31. 0 R us s ia 13. 1%
S witzerla nd 1 Hong K ong 237. 5 R us s ia 193. 9 Ita ly 236. 1 R us s ia 20. 4 Hong K ong 6. 0%
India 1 S witzerla nd 205. 8 U nited S ta tes 188. 5 G erma ny 171. 4 Hong K ong 20. 0 S witzerla nd 5. 4%
F inla nd 1 R us s ia 193. 9 Ita ly 136. 8 R us s ia 156. 3 G erma ny 9. 7 G ermany -7. 4%
United K ingdom 1 Ita ly 136. 8 G ermany 106. 0 Ma lays ia 78. 5 Aus tralia 4. 9 C anada -10. 6%
Ita ly 1 F inland 51. 3 F inland 51. 3 S witzerla nd 63. 0 S witzerla nd 3. 4 U nited S ta tes -15. 4%
Hong K ong 1 Malays ia 36. 4 Malays ia 36. 4 India 47. 7 United K ingdom -2. 7 F inland NA
S weden 1 Aus tralia 29. 4 India 20. 2 Aus tralia 17. 8 F inla nd -18. 5 India NA
R us s ia 1 India 20. 2 Aus tralia 14. 7 F inla nd 4. 5 India -51. 2 U nited K ingdom NA
Ma lays ia 1 U nited K ingdom 5. 6 U nited K ingdom 5. 6 United K ingdom 0. 0 Ma lays ia -85. 2 Mala ys ia NA

G rand Total 80 G rand Total 77,284.4 G rand Total 966.1 G rand Total 14,118.5 G rand Total 3,473.8 G rand Total 11.8%

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 16 S E HK 40, 705. 3 S E HK 13,568. 4 OM 1,942. 0 Na s daqG S 1, 918. 2 NY S E 68. 2%

Na s daqG S 14 Nas da qG S 22, 230. 0 OM 3,266. 2 S E HK 607. 9 S E HK 897. 1 AS X 42. 8%
K OS E 8 TS E 4, 129. 4 NY S E 1,594. 3 Na s daqG S 508. 5 OM 274. 4 S E HK 40. 6%
T S XV 5 OM 3, 266. 2 Nas da qG S 1,587. 9 CM 236. 1 TS E 187. 1 GTS M 37. 3%
TS E 5 K OS E 1, 799. 1 TSE 825. 9 NY S E 202. 3 NY S E 137. 9 Nas da qG S 30. 7%
Na s daqG M 4 NY S E 1, 594. 3 GTS M 684. 0 RTS 156. 3 K OS E 115. 4 TSE 24. 7%
TS X 3 GTS M 1, 368. 0 OS E 311. 5 OS E 116. 4 GTS M 65. 0 OS E 22. 3%
XT R A 3 XT R A 318. 0 K OS E 224. 9 TS E 112. 9 CM 31. 0 K OS E 18. 2%
OT C P K 3 OS E 311. 5 SWX 205. 8 GTS M 110. 5 OS E 25. 9 OM 14. 1%
S E HK 3 TS X 253. 3 R TS 193. 9 Na s daqG M 97. 3 Na s daqG M 25. 2 CM 13. 1%
AME X 2 Nas da qG M 237. 6 CM 136. 8 K OS E 86. 1 RTS 20. 4 R TS 13. 1%
AS X 2 SWX 205. 8 XT R A 106. 0 K LS E 78. 5 XT R A 9. 7 T S XV 9. 0%
GTS M 2 R TS 193. 9 TSX 84. 4 SWX 63. 0 AME X 6. 0 Nas da qG M 8. 6%
SWX 1 OT C B B 166. 1 Nas da qG M 59. 4 XT R A 57. 1 AS X 4. 9 S WX 5. 4%
HL S E 1 CM 136. 8 HLS E 51. 3 BSE 47. 7 SWX 3. 4 XT R A -7. 4%
CM 1 T S XV 97. 3 AME X 40. 0 TS X 46. 5 AIM -2. 7 A ME X -27. 7%
BS E 1 AME X 79. 9 K LS E 36. 4 AME X 26. 4 TS X -7. 0 TSX -35. 8%
OS E 1 HLS E 51. 3 BS E 20. 2 AS X 8. 9 T S XV -7. 2 OTCB B -48. 2%
NY S E 1 OT C P K 48. 8 T S XV 19. 5 T S XV 8. 6 OT C P K -17. 9 OTCP K NA
AIM 1 K LS E 36. 4 OT C P K 16. 3 HL S E 4. 5 HL S E -18. 5 A IM NA
OM 1 AS X 29. 4 AS X 14. 7 OT C B B 2. 4 BSE -51. 2 BSE NA
RTS 1 BS E 20. 2 OT C B B 10. 4 OT C P K 0. 6 OT C B B -58. 3 HLS E NA
K LS E 1 AIM 5. 6 AIM 5. 6 AIM 0. 0 K LS E -85. 2 K LS E NA

G rand Total 80 G rand Total 77,284.4 G rand Total 966.1 G rand Total 14,118.5 G rand Total 3,473.8 G rand Total 11.8%

Figure 22. Comparison by Exchange

Source. Capital IQ
 Page 18

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

Fin. 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 G rand Total
Nov-09 R ockYou US A 50. 0 50. 0
P laydom US A 43. 0 43. 0
S ezmi US A 25.0 25. 0
Millennial Media US A 16.0 16. 0
Zynga US A 15.0 15. 0
E vernote US A 10.0 10. 0
C ubeTree US A 8.0 8.0
Alic e.c om US A 6.0 6.0
E ventbrite US A 6.0 6.0
P lac ec as t US A 5.0 5.0
AppNexus US A 5.0 5.0
Altruik US A 4. 7 4.7
C redit K arma US A 2. 5 2.5
B lekko US A 2. 5 2.5
P layfire UK 2. 1 2.1
S impleG eo US A 1. 5 1.5
P ros per.c om US A 1. 0 1.0
Adfonic UK 0. 6 0.6
S coopler US A 0. 5 0.5
Nov-09 Total 2.6 1.0 52.3 44.0 52.0 52.5 204.4

Dec -09 Zynga US A 180. 0 180. 0

Youku C hina 40. 0 40. 0
Zoos k US A 30. 0 30. 0
G roupon US A 30.0 30. 0
L ithium US A 18.0 18. 0
gW allet US A 12. 5 12. 5
MobG old C hina 12.0 12. 0
Movik Networks US A 8.5 8.5
G owalla US A 8.4 8.4
G ogii US A 8.2 8.2
L iveMoc ha US A 8.0 8.0
S onicMule US A 8.0 8.0
kaC hing US A 7. 5 7.5
S eekingAlpha Is rael 7.0 7.0
P ageonce US A 6. 5 6.5
G enius .c om US A 6. 5 6.5
C urs e US A 6.0 6.0
AlikeL is t US A 5. 0 5.0
P owerR eviews US A 4.9 4.9
S maato US A 4.5 4.5
S C VNG R US A 4.0 4.0
Tonc hidot J a pan 4. 0 4.0
Twilio US A 3. 7 3.7
5 Minutes C hina 3. 5 3.5
J anR ain US A 3. 3 3.3
S toc kTwits US A 3.0 3.0
Article One P artners US A 3. 0 3.0
W his key Media US A 2. 5 2.5
Appolic ious US A 2. 4 2.4
G rapes hot UK 2. 4 2.4
C enter'd US A 1.9 1.9
W ePay US A 1. 7 1.7
J inni Is rael 1. 6 1.6
Vis ible Tec hnologies US A 1. 0 1.0
G lobalMotion Media US A 1. 0 1.0
Dec -09 Total 2.5 1.0 58.0 101.5 210.9 76.5 450.4

J an-10 Quantc as t US A 27.5 27. 5

B oku US A 25.0 25. 0
Vis ible Tec hnologies US A 22. 0 22. 0
G uvera Aus tra lia 20.0 20. 0
6 W aves C hina 17. 5 17. 5
S pic eworks US A 16.0 16. 0
S MS G upS hup US A 12.0 12. 0
Aggregate K nowledge US A 9.0 9.0
Flurry US A 7.0 7.0
B uyW ithMe US A 5. 5 5.5
G aikai Netherla nds 5. 0 5.0
E yeka F ra nce 4.3 4.3
B eezag US A 2. 5 2.5
S way US A 2. 0 2.0
J elli US A 2. 0 2.0
OneForty US A 2. 0 2.0
B lippy US A 1. 6 1.6
G raphic.ly US A 1. 2 1.2
XIHA F inla nd 1. 0 1.0
S ocialGO US A 0. 8 0.8
J oonto US A 0. 6 0.6
J an-10 Total 5.4 36.3 23.3 97.5 22.0 184.5

G rand Total 10.5 2.0 146.6 168.8 360.4 151.0 839.3

Figure 23. Financing, Last Three Months

Source. Company reports
 Page 19

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

C ompany HQ Webs ite Des cription
6 W aves C hina www. 6waves . com 6waves is a venture backed company tha t publis hes and develops gaming applica tions for s ocial networking s ites s uch as F acebook. S ome
of the company's mos t famous games include Happy Harves t, My F is hbowl, C razy Office, a nd Medical Mayhem.
AdMarvel US A www. admarvel. com As of J anuary 20, 2010, AdMarvel Inc. opera tes as a s ubs idiary of Opera S oftware AS A. AdMarvel is mobile advertis ing group that boas ts
s imple management of a d traffic and higher revenue return. T hey partner with ad networks to deliver better res ults for publis hers .
Aggregate K nowledge US A www. aggrega teknowledge. com Aggregate K nowledge, Inc. provides s olutions that ena ble cus tomers to levera ge real-time cons umer interes t into their advertis ing and
marketing campaigns . It offers P ique Dis covery Network that connects cons umers to the products , content, and items from various reta ilers
a nd media compa nies . Aggregate K nowledge s erves retailers and media companies . T he company was founded in 2005 a nd is bas ed in
S an Mateo, C alifornia.
B eezag US A www. beez ag. com B eez ag s pecializ es in the s ending of video ads to cons umers who are looking for the products and s ervices being advertis ed. T hes e
cons umers have all opted-in and rais ed their hands a fter being invited to join B eez ag.
B lippy US A www. blippy. com B lippy Inc. provides a s ervice that allows us ers to automatically s hare your credit card tra ns actions as you mak e them. T he company was
founded in 2009 and is bas ed in P a lo Alto, C alifornia.
B oku US A www. boku. com B OK U, Inc. provides online payments s ervices to pay for virtual and digital goods with the mobile phone. It s erves cus tomers in the United
S tates and internationally. T he company was incorporated in 2008 and is bas ed in S an F ra ncis co, C alifornia with additiona l offices in E urope,
As ia , a nd L atin America.
B uyWithMe US A www. buywithme.com B uyW ithMe, Inc. operates as an online s hopping and group buying network for cons umers and bus ines s es in the United S tates . It enables
merchants to attract new cons umers and promote new products a nd s ervices , as well as facilitates cons umers with various dis count options
from res taurants , s ervices , events , and retailers . T he company was incorporated in 2009 and is headquartered in W elles ley, Ma s s achus etts .
E cho Nes t US A www. the. echones t. com T he E cho Nes t C orpora tion is a mus ic intelligence company. T he company develops mus ic s earch, and pers onaliz ation and interactive
a pplica tions on a platform that reads about and lis tens to online mus ic. It offers mus ic information s ervices to developers and partners
through its da ta mining and machine lis tening platform. T he E cho Nes t C orporation was incorporated in 2005 a nd is bas ed in S omerville,
E yeka F rance www. eyeka . com Mas s achus
E yeka is anetts .
online platform that enables brands , media, content owners , and mobile operators to s eize opportunities in new media . T he
company helps filmmakers , photographers , animators , and graphic des igners to s hare abs tra ct art, a rchitecture a nd des ign, beauty and well-
being, bus ines s s ettings , concepts and s ymbols , emotions and feelings , flora and fauna, food and drink , medical and health, nature and
lands ca pes , people and relations hips , s port and leis ure, technology, and travel and ethnology, as well a s commerce, indus try, and trans port;
a nd objects , materials , and textures . E yeka was founded in 2006 and is headqua rtered in P aris , F rance.
F lurry US A www. flurry. com F lurry, Inc. offers mobile application analytics , deployment, and monetization tools for mobile application developers . T he company was
formerly known a s S V B T echnologies , Inc. and changed its name to F lurry, Inc. in 2006. T he compa ny was founded in 2005 and is bas ed in
S an F rancis co, C alifornia.
G aikai Netherlands www. gaikai. com G aikai B . V . offers online games . T he company was founded in 2008 and is headquartered in Alis o V iejo, C alifornia.
G raphic.ly US A www. graphic.ly G raphicly is a digital content delivery s ys tem and community platform for the publis hing world. G raphic.ly’s firs t product focus es on comic
publis hers , creators and enthus ias ts , and provides a n immers ive s ocial experience and ma rketplace around digital comics and as s ociated
merchandis e. T he company is looking to expand its community and content pla tform and become the de facto s olution for print media .
G uvera Aus tralia www. guvera. com G uvera L imited provides a n online s olution for downloa ding free entertainment content by avoding illegal downloads . It operates a W eb
interface, an acces s point through which its us ers a cces s and s hare digital entertainment content, s uch as mus ic, film and televis ion content,
a nd games in a wa y that their fa vorite artis ts get paid for each file they download. T he compa ny als o provides an online advertis ing medium.
It s erves corporations and their adverting agencies , a s well as the entertainment indus try. G uvera L imited was founded in 2008 and is bas ed
in R obina, Aus tralia .

Figure 24a. Company Descriptions

Source. Company reports, Capital IQ, Crunchbase
 Page 20

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

C ompany HQ Webs ite Des cription
J elli US A www. jelli.net J elli, Inc. operates online radio s tation. T he compa ny was incorporated in 2007 a nd is bas ed in S an Mateo, C alifornia.
J oonto US A www. s ociety. me J oonto runs S ociety. me, a platform that helps people genera te buzz around their blogs us ing s ocial network s like T witter and F acebook .
L iving S oc ial US A www. livings ocial. com L ivingS ocial offers a collection of us er-review apps acros s the mos t popular s ocial networks (F a cebook, MyS pace, Hi5, B ebo, and O rkut).
T he apps are des igned to let people organize and dis cover their favorite book s , movies , mus ic, res taurants , games , a nd beer.
Mochi Media US A www. mochimedia. com Mochi Media, Inc. provides tools and s ervices to s upport game developers . Its products include MochiAds , an online games network for
game developers , advertis ers , a nd publis hers ; MochiB ot, a traffic monitoring tool for flas h content; and MochiLand that provides articles ,
tutorials , and updates for the gaming community. T he company’s online game network enables developers to monetize, track, and dis tribute
games acros s the Internet, as well a s enables advertis ers to reach engaged audience through games ; and publis hers to a cces s ga ming
content to enga ge and monetize us ers on their s ite. Mochi Media , Inc. wa s founded in 2005 a nd is hea dquartered in S a n F ra ncis co,
C alifornia.
NuC onomy Is rael www. nuconomy. com NuC onomy Inc. operates as a W eb analytics compa ny. It offers NuC onomy S tudio, a W eb analytics and optimization platform that enables
publis hers , advertis ers , and us ers to unders ta nd and act on s ocial ma rk eting performance and community enga gement. T he company’s
product is als o us ed to meas ure the intera ctions and s ocial features of W ebs ites ; optimize us er online pres ence, including advertis ing; and
create convers ational marketing opportunities . In addition, it enables publis hers to unders tand vis itors ’ behavior and engagement on content,
brands , and s ite features by providing information on comments , ratings , video pla ys , s haring links , a nd purcha s es . NuC onomy Inc. was
founded in 2006 and is bas ed in S a n F ra ncis co, C alifornia.
OneF orty US A www. oneforty.com O neforty, Inc. provides online clearing s ervices for applications related to T witter. T he company was founded in 2009 and is bas ed in
C ambridge, Mas s a chus etts .
Quantcas t US A www. quantcas t.com Q uantcas t is a media meas urement, web analytics s ervice tha t a llows us ers to view audience tra ffic for millions of s ites . P articipa nts in
Q uantcas t’s direct meas urement program include F ox, C B S , B elo C orporation, AccuW eather, S lide, a nd IDG .
R eframe It US A www. reframeit. com R eframe It allows web us ers to comment on the text of a ny web page without the permis s ion of the s ite. R eframe It’s mis s ion is to offer the
public a s pace right next to the web where news papers , bloggers , companies , governments , non-profits and individuals a re able to hold one
a nother accountable for the information they convey a nd withhold from the public. T his lets people with relevant expertis e confirm good
information and it lets them challenge informa tion which is inaccurate, mis leading and deceptive s o that the broader community of us ers can
India www. s ms gups hup. com benefit
W ebaroofrom it.
T echnology (India) P rivate L imited, a s ocial media compa ny, provides mobile group S MS s ervices . It opera tes as an S MS
S MS G upS hup
mes s aging platform that enables us ers to crea te mobile communities and broadcas t mes s a ges to mobile communities . T he compa ny als o
provides G upS hup s tream a nd group AP Is , which ena ble developers to build S MS -bas ed widgets a nd s ervices that advertis e group
mes s ages on their W ebs ite/blog, and pos t mes s ages to their group through their W ebs ite; and G upS hup Apps platform, which enables
developers to create S MS applications that help us ers communica te to s ys tems with S MS . In addition, it offers bus ines s advertis ing,
engagement marketing, and enterpris e mes s aging s ervices . F urther, the company provides S MS applications ; and mobile content, s uch as
wa llpapers , videos , mus ic, truetones , polytones , themes , and greetings . F urthermore, it has groups on various topics , s uch as bus ines s ,
clubs and organiz ations , education and campus , entertainment, events and pa rties , finance, food and drinks , health, jobs , jok es , micro-
blogging, movies a nd T V , mus ic, news and politics , romance, s hopping and dea ls , s pirituality, s ports , technology, and tra vel and lifes tyle. T he compan
Mumbai, India. W ebaroo T echnology (India) P riva te Limited operates as a s ubs idiary of W ebaroo Inc.

S ocialG O US A www. s ocialgo. com S ocialG O creates a flexible, fun s ocial networking webs ite. It is s ta nd-alone or can s imply be bolted onto an exis ting s ite if need be. As a
brows er bas ed s ervice, it is operated from dedicated s ervers a nd does not require s oftwa re downloa ds . In this way, members of a network
can acces s it from anywhere in the world.
S piceworks US A www. s picework s . com S piceworks , Inc. des igns , develops , and delivers s ocial information technology mana gement s oftware applications for s mall and medium
bus ines s es in the United S tates . It offers an IT Des ktop, which provides network inventory, help des k, reporting, monitoring, and
troubles hooting of s oftware a nd hardware as s ets in the networks . T he company provides a downloadable P ower Ma nager plug-in that
enables information technology profes s ionals to a utomatically regulate the power cons umption of networked computers . It s erves various
organiz ations , including s ys tems integrators , government agencies , bus ines s es , ma nufacturers , educationa l ins titutions , and non-profits .
S piceworks , Inc. was founded in 2006 and is headqua rtered in Aus tin, T exas .
S tudioNow US A www. s tudionow. com S tudioNow, Inc. provides an online video, animation, and audio creation platform for the creation and dis tribution of on-demand video
content. It s erves editors , videogra phers , creative individuals , media organiz ations , Internet ma rketers , advertis ers , book authors , publicis ts ,
a nd marketing mana gers . T he company was incorporated in 2006 and is bas ed in Nas hville, T ennes s ee. As of J anuary 22, 2010,
S tudioNow, Inc. operates as a s ubs idiary of AOL, Inc.
S tyleF eeder US A www. s tylefeeder. com S tyleF eeder, Inc. operates an online s ocial s hopping s ite. It provides a way to find, s hare, and keep track of s hopping s tuff online us ing
vis ua l bookmarks . T he company was founded in 2005 and is bas ed in C a mbridge, Ma s s achus etts . As of J a nuary 19, 2010, S tyleF eeder, Inc.
operates as a s ubs idiary of T ime Inc.
S way US A www. s wayonline. com S way, Inc. provides s ocia l media marketing s olutions . It offers S houtlet, a W eb-bas ed application tha t a llows us ers to create, dis tribute, and
track elements of s ocial media campaigns . T he company a ls o provides online ins ights and s trategic s ervices . S way, Inc. was founded in
2004 and is headquartered in Middleton, W is cons in.
Vis ible Technologies US A www. vis ibletechnologies . com V is ible T echnologies , Inc. provide online brand mana gement s olutions for companies and individuals . T he company’s products include
truP ULS E , a R R S feed-ba s ed s ocial media monitoring and a nalys is application; truV OIC E , a s ocial media monitoring, analys is , and
participation application; a nd truS E AR C H, a s earch application that provides key phras e bas ed drilldown, topic dis covery, and conceptual
s earch functionalities . It a ls o offers truINS IG HT , a s et of profes s iona l s ervices and reports for tracking and meas uring s ocia l media
convers ations and truR E P UT AT IO N, a s et of s ervices for managing, protecting, a nd repairing corpora te and individual reputa tions online.
T he company partners with W P P ; B eyond Interaction; B urs on Digital; M80; Omniture, Inc. ; S pring C reek G roup; W underman; a nd C oncepts
& S tra tegies , Inc. V is ible T echnologies wa s founded in 2005 and is bas ed in B ellevue, W as hington with an a dditional office in New Y ork,
New Y ork.
XIHA F inland www. xihalife. com X IHA, Ltd. operates as a multilingual online community. It offers homepages , blogs , photo s haring tools , mus ic, and downloadable pers onal
computer/Mac games , as well as wa ys to integrate content with other s ocial media W ebs ites . T he company offers s ervices in the United
S tates , C hina, B raz il, F rance, and S pain. XIHA, Ltd. was founded in 2007 and is bas ed in Hels inki, F inland.

Figure 24b. Company Descriptions – continued

Source. Company reports, Capital IQ, Crunchbase
 Page 21

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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