Web 2.

0 Weekly
“Google Follows ITA Software With Zynga Financing”
July 13, 2010

David Shore, CFA, MBA 416.860.6784

dshore@mackieresearch.com
Damian Wojcichowsky, CFA 416.860.7652

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

Copyright © 2000-2010, Mackie Research Capital Corporation, All rights reserved www.mackieresearch.com
 Key Developments (past week)
Deals (M&A, Finance) – Google On A Roll

Google invested a rumoured $100-$200 mm in social game developer, Zynga, bringing
that company’s total funding to almost $500 mm (assuming the lower end of the range).

The Gaming sector remains hot – along with Google’s investment in Zynga, The9 Ltd.
(Chinese online game developer and operator) invested $5 mm in Delaware-based
Aurora Feint (focused on gaming for the mobile space).

A triad of financings in the Social Commerce space this week, including Beyond the
Rack ($12 mm), ThredUP ($1.7 mm), and BuyWithMe ($16 mm in a Series B
financing).

Sysomos, Canadian social media monitoring firm, was acquired by MarketWire for
between $25 mm and $35 mm.
Financial Results/Guidance/Partnerships/Product

LookSmart, Ltd (NasdaqGM:LOOK) provided preliminary Q2/F10 guidance for sales of
$12.8-$13.0 mm (compared with $13.2 mm Y/Y and $13.3 mm Q/Q). However, the
company is expected to report positive EPS of $0.02-$0.04 compared with losses of
$0.08 and $0.03 Y/Y and Q/Q, respectively. LookSmart is an advertising firm with focus
on pay-per-click and search campaigns.

2 www.mackieresearch.com
 Chart of the Week: Zynga Dominates Gaming Financing
600.0
Zynga has raised ~$500 mm
– more than any other
500.0
Gaming sector company

400.0
US$ mm

300.0

481.0

200.0

300.0

100.0

99.6 92.0
76.0
40.6 36.5 29.0 27.0 24.0 24.0
0.0

LiveGamer
Smith & Tinker
Zynga

ZeniMax Media

Turbine

Raptr
Ngmoco

Emergent Game

Limbo
Playdom
Big Fish Games

Technologies

3 www.mackieresearch.com
 Public Company Data

4 www.mackieresearch.com
 Aggregate Public Data

Web 2.0 Public Companies Total Median Max Min

# Companies 103 - - -
Market Cap (US$ mm) 76,857.8 69.3 32,658.2 1.0
Revenue (US$ mm) 23,196.6 56.0 3,057.7 0.0
1 Year revenue growth 2.5% 8961.6% -100.0%
EBITDA as % of revenue - 11.3% 63.1% -99.5%
Net cash (US$ mm) 9,249.6 3.3 1,843.0 -670.8
TEV/Revenue - 1.9x 43.5x 0.1x
TEV/EBITDA - 8.8x 42.9x 0.5x
P/E - 15.8x 94.5x 0.0x
Relative to 52 week high -44.0% 0.0% -95.6%

Source: CapitalIQ

5 www.mackieresearch.com
 6
0
5
10
15
20
25
30
Gaming

28
Social Networking

18
Media

10
9
Diversified

5
Mobile

5
Marketing

Source: CapitalIQ
3
Infrastructure

3
SMS/Voice

3
Enterprise

3
Advertising

2
Internet Retail

2
Virtual World
By Sector

2
Dating

2
Music

1
Vertical Communities

1
Search

1
Podcasting

1
Learning

1
Video

1
Collaboration

1
Payment

1
Financial Services
Public Company Distribution

0
5
10
15
20
25
30
35
40
45
50

United States

Canada

China

South Korea

Japan

Taiwan

Hong Kong

Germany

Poland

Australia

United Kingdom
By Country

Italy

Finland

Sweden

India

Russia

Malaysia

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

Flat
10% Flat
0%

Falling
63%
Falling
32% Rising Rising
58% 37%

EV/EBITDA P/E

Flat Flat
0% 0%

Rising
Rising 40%
33%
Falling
67% Falling
60%

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

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

# companies
5/11/2009
5/18/2009
5/25/2009
6/1/2009
6/8/2009
6/15/2009
6/22/2009
6/29/2009
7/6/2009
7/13/2009
7/20/2009
7/27/2009
8/3/2009
8/10/2009
8/17/2009
8/24/2009
Median EV/Revenue

8/31/2009
9/7/2009
9/14/2009
9/21/2009
9/28/2009
10/5/2009
10/12/2009
10/19/2009
10/26/2009
11/2/2009
11/9/2009

Median
11/16/2009
11/23/2009
11/30/2009
12/7/2009
12/14/2009
12/21/2009
12/28/2009
1/4/2010
1/11/2010
1/18/2010

Long-term average
1/25/2010
2/1/2010
2/8/2010
2/15/2010
2/22/2010
3/1/2010
3/8/2010
3/15/2010
3/22/2010
average

3/29/2010
4/5/2010
well below LT

4/12/2010
4/19/2010
down slightly, still
Revenue multiples

4/26/2010
5/3/2010
5/10/2010
5/17/2010
5/24/2010
5/31/2010
6/7/2010
6/14/2010
6/21/2010
6/28/2010
373839404040404042444545464646474951505150535656616161646666676464666970717173697068717370757578767879817879808083828282

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

# companies
0. 0x
5. 0x
10. 0x
15. 0x
20. 0x
25. 0x
30. 0x
5/25/2009
6/1/2009
6/8/2009
6/15/2009
6/22/2009
6/29/2009
7/6/2009
7/13/2009
7/20/2009
7/27/2009
8/3/2009
8/10/2009
8/17/2009
8/24/2009
Median EV/EBITDA

8/31/2009
9/7/2009
9/14/2009
9/21/2009
9/28/2009
10/5/2009
10/12/2009
10/19/2009
10/26/2009
11/2/2009
11/9/2009
11/16/2009
11/23/2009

Median
11/30/2009
12/7/2009
12/14/2009
12/21/2009
12/28/2009
1/4/2010
1/11/2010
1/18/2010
1/25/2010
2/1/2010
2/8/2010

Long-term average
2/15/2010
2/22/2010
3/1/2010
3/8/2010
3/15/2010
3/22/2010
3/29/2010
4/5/2010
4/12/2010
4/19/2010
4/26/2010
5/3/2010
5/10/2010
5/17/2010
EV/EBITDA multiples down,
depressed below LT average

5/24/2010
5/31/2010
6/7/2010
6/14/2010
6/21/2010
6/28/2010
7/5/2010
7/12/2010
19 20 21 22 22 21 21 22 23 22 23 22 23 25 25 26 26 25 24 25 26 27 30 29 33 33 35 37 40 38 38 38 39 40 42 38 38 41 42 41 42 41 41 41 42 43 44 44 44 47 49 49 50 50 50 48 50 47 49 49

www.mackieresearch.com
 10
Source: CapitalIQ
Multiple (x )

# companies
0. 0x
5. 0x
10. 0x
15. 0x
20. 0x
25. 0x
30. 0x
35. 0x
5/25/2009
6/1/2009
6/8/2009
Median P/E

6/15/2009
6/22/2009
6/29/2009
7/6/2009
7/13/2009
7/20/2009
7/27/2009
8/3/2009
8/10/2009
8/17/2009
8/24/2009
8/31/2009
9/7/2009
9/14/2009
9/21/2009
9/28/2009
10/5/2009
10/12/2009
10/19/2009
10/26/2009
11/2/2009
11/9/2009
11/16/2009
11/23/2009

Median
11/30/2009
12/7/2009
12/14/2009
12/21/2009
12/28/2009
1/4/2010
1/11/2010
1/18/2010
1/25/2010
2/1/2010
2/8/2010

Long-term average
2/15/2010
2/22/2010
3/1/2010
3/8/2010
3/15/2010
3/22/2010
3/29/2010
4/5/2010
4/12/2010
4/19/2010
4/26/2010
and below LT average

5/3/2010
P/E multiples also down

5/10/2010
5/17/2010
5/24/2010
5/31/2010
6/7/2010
6/14/2010
6/21/2010
6/28/2010
7/5/2010
7/12/2010
19 19 18 18 19 18 19 19 20 20 19 18 19 19 19 20 23 23 24 24 25 26 28 26 30 30 31 31 33 33 33 35 37 39 38 38 38 39 40 41 39 39 39 38 37 37 35 33 33 32 35 35 36 35 35 34 36 32 33 33

www.mackieresearch.com
 11
-
5.0
10.0
15.0
20.0
25.0
30.0
35.0

# Companies 1
Virtual World
33.0

2
Infrastructure

13.4

9
Social Networking

9.2

7
Diversified

9.0

1
Learning

7.6

4
Mobile

4.9

2
Music

4.3

1
Search

4.0
Gaming

21
3.7

5
Marketing
3.4

3
SMS/Voice
3.3

1
Vertical Communities
3.3
Average EV/Revenue – by Sector

1
Podcasting
2.8

1
Collaboration
2.5

9
Media
2.3

Advertising
2.3

Internet Retail
1.9

Enterprise
1.8

Video
1.5

Dating
1.3

Financial Services
0.4

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

50.0

45.0 42.9

40.0

35.0

30.0

25.0

20.0
16.7 16.5
15.0
12.1
11.1
10.2 9.9 9.2 9.1
10.0
6.9 6.5
4.7
5.0

-
Diversified

Advertising
Internet Retail
Search

Enterprise

Mobile

Social Networking

Gaming

Media

Collaboration

Marketing

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

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

100.0

90.4
90.0

80.0

70.0

60.0 57.5

50.0

39.6
40.0 35.9

30.0
23.7
19.2
20.0 16.0
13.5 13.2

10.0 7.4

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

2 3 1 9 18 5 3 28 10 2
# Companies

13 www.mackieresearch.com
 14
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0

43
Ac credited Members H olding C orporation

Source: CapitalIQ
40
NeXplore C orporation
S ocialG O P LC

33 33
Worlds .c om Inc .

26
S pec trumDNA, Inc .

17
T encent H oldings L td.

15
G eoS entric O y j

13
P aid Inc .

11
B ey ond C ommerce, Inc .
C hines e G amer International

10 10
MO K O . mobi L imited

9
G ree, Inc .
L ingo Media C orporation

8 8
DigitalP os t Interactive, Inc .
F luid Mus ic C anada, Inc .

7 6
T rans G aming, Inc .
Dena C o. L td.
HU G H E S T elematic s , Inc .

6 5 5
Ac celeriz e New Media, Inc.
F rogs ter Interac tiv e P ic tures AG
Mix i, Inc.
S K C ommunications C o., L td.

4 4 4 4
C hangyou. com Limited
T aleo C orp.

4 3
WebMediaB rands Inc
K ings oft C orporation Limited
is eemedia Inc .
Wiz z ard S oftware C orporation
EV/Revenue Ranking

O pen T ex t C orp.

3 3 3 3 2
Motric ity , Inc .
H anbitS oft, Inc.
eP ro L td.
Modern T imes G roup Mtg AB
NE O WIZ G ames C orporation
XING AG
S core Media Inc.
S ohu.c om Inc .
S hutterfly, Inc.
V elti P lc 2 2 2 2 2 2 2 2 2 2
P NI Digital Media Inc .
G ungH o O nline E ntertainment, Inc .
V alueC lick , Inc .
Myriad G roup AG
P latforma Mediowa P oint G roup S . A.
U nilav a C orporation
Webz en Inc.
U O MO Media, Inc
Accredited Members

NeuL ion Inc orporated

revenue multiple at 43x

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

Holding Co. has highest

Hutc his on T elec ommunic ations Hong

Y D O nline C orp.
S park Network s , Inc .
2 2 2 2 2 2 2 1 1 1 1 1 1

S NAP Interactive, Inc .

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

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

Look S mart, L td.

www.mackieresearch.com
 15
0. 0
5. 0
10. 0
15. 0
20. 0
25. 0
30. 0
35. 0
40. 0
50. 0

Source: CapitalIQ
S K C ommunic ations C o. , Ltd.

45. 0 42.9
T enc ent Holdings Ltd.

32. 8
T aleo C orp.

27. 4
F rogs ter Interac tive P ic tures AG

25.9
Motric ity , Inc .

22.2
C hines e G amer International

19.9
Mix i, Inc .
My riad G roup AG
Modern T imes G roup Mtg AB

17.416. 916. 5
G ree, Inc .
AQ Interac tive, Inc .

15. 615.5
S hutterfly , Inc .
T heS treet. c om, Inc .
14.713.9
S c ore Media Inc .
EV/EBITDA Ranking

Dena C o. Ltd.
12. 811. 8

Y D O nline C orp.
O penwave S y s tems Inc .
11. 210.4

P latforma Mediowa P oint G roup S .A.

IAC /InterAc tiveC orp.
O pen T ex t C orp.
DADA S pA
G amania Digital E ntertainment C o., Ltd.
9. 6 9. 5 9.1 8.8 8.8

XING AG
the group at 42.9x

G ungHo O nline E ntertainment, Inc .

V elti P lc
SK Communications leads

NE O WIZ G ames C orporation

P NI Digital Media Inc .
Unis erve C ommunic ations C orp.
8. 2 7. 9 7. 7 7.6 7.6 7.4

K ings oft C orporation Limited

N etDragon WebS oft, Inc .
S park Network s , Inc .
7.1 7. 1 6. 5

V alueC lic k , Inc .

C hangy ou. c om Limited
C DC C orp.
Hutc his on T elec ommunic ations Hong K ong Holdings Ltd.
T he New Y ork T imes C ompany
6.1 6.0 6.0 5.9 5. 3

S ohu.c om Inc .
C y berplex Inc .
4. 7 4.7

United O nline, Inc .

3.6

AO L, Inc .
Ac toz S oft C o., Ltd.
2.1 1.7

G ameO n C o Ltd.
J umbuc k E ntertainment Limited
Y ippy , Inc.
0. 9 0. 5 0. 0

www.mackieresearch.com
Excluding EV/EBITDA > 100x
 16
Source: CapitalIQ
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
eP ro Ltd.

S hutterfly , Inc. 94.5

90.4
P oints International Ltd.

64.6
Mix i, Inc .

52. 6
P/E Ranking

C DC C orp.

50. 3
T enc ent H oldings Ltd.

43. 6
O pen T ex t C orp.

39. 6
NetDragon W ebS oft, Inc .

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

G ree, Inc .
31. 7 31. 6 30.7

F rogs ter Intera ctive P ictures AG

29.3

C hines e G amer Internationa l

Dena C o. Ltd.
26.6 26.4

V elti P lc
23.9

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

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

18.8 17.8

C y berplex Inc .
ePro has the highest

T he New Y ork T imes C ompany

V alueC lic k , Inc.

DADA S pA
16.0 15.7 14.5 14.2

S ohu.com Inc .

K ings oft C orpora tion L imited

13.2 12.5

AO L , Inc.

G ameO n C o Ltd.
10.6 9.1

C hangy ou. com L imited

9.0

U nited O nline, Inc .

8.3

Ngi G roup Inc .

7.4

Unis erve C ommunic ations C orp.

5.5

J umbuc k E ntertainment Limited

3.3

N etea s e.com Inc .

2.3

G iant Intera ctive G roup, Inc .

2.1

S ha nda Interac tive E ntertainment Ltd.

1.9

www.mackieresearch.com
 17
Source: CapitalIQ
(U S $m)

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

7/20/2009
7/27/2009
8/3/2009
8/10/2009
8/17/2009
8/24/2009
8/31/2009
9/7/2009
9/14/2009
9/21/2009
9/28/2009
10/5/2009
10/12/2009
10/19/2009
10/26/2009
11/2/2009
11/9/2009
11/16/2009
11/23/2009
11/30/2009
12/7/2009
12/14/2009
Total Market Capitalization

12/21/2009
12/28/2009
1/4/2010
1/11/2010
1/18/2010
1/25/2010
2/1/2010
2/8/2010
2/15/2010
2/22/2010
3/1/2010
3/8/2010
3/15/2010
3/22/2010
3/29/2010
Total market cap rises $2.4 bn to $76.9 bn

4/5/2010
4/12/2010
4/19/2010
4/26/2010
5/3/2010
5/10/2010
5/17/2010
5/24/2010
5/31/2010
6/7/2010
6/14/2010
6/21/2010
6/28/2010
7/5/2010
7/12/2010
98 98 98 98 98 98 98 97 98 98 98 98 99 99 99 99 99 99 99 100100100100100100100100100100100100101102102102102102102102102102102102102102102102102103103102103

www.mackieresearch.com
 18
-

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

9
Diversified

Gaming

28
Media

10
Social Networking

18
1
Collaboration

3
Enterprise

5
Marketing

2
Internet Retail

5
Mobile

1
Search
Total Market Cap – by Sector

2
Music

3
SMS/Voice

1
Financial Services

2
Dating

3
Advertising
2
Virtual World
1

Video
$37 bn in market cap

Vertical Communities
1

Payment
Nine Diversified companies totaling

Infrastructure
1

Podcasting
1

Learning
www.mackieresearch.com
 19
0
1,000
2,000
3,000
4,000
5,000
6,000
Tencent Holdings Ltd.
Netease.com Inc.
Modern Times Group Mtg AB
Dena Co. Ltd.

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

Fluid Music Canada, Inc.

Openwave Systems Inc.
OAO RBC Information Systems
GigaMedia Ltd.
HanbitSoft, Inc.
The9 Limited
Webzen Inc.
AQ Interactive, Inc.
Points International Ltd.
TheStreet.com, Inc.
HUGHES Telematics, Inc.
DADA SpA
Tree.Com, Inc.
GameOn Co Ltd.
Frogster Interactive Pictures AG
Actoz Soft Co., Ltd.
Paid Inc.
Score Media Inc.
Spark Networks, Inc.
Yippy, Inc.
YD Online Corp.
Moggle, Inc
NeuLion Incorporated
Quepasa Corp.
Cyberplex Inc.
Platforma Mediowa Point Group S.A.
PNI Digital Media Inc.
Ngi Group Inc.
Gravity Co., Ltd
Glu Mobile, Inc.
GeoSentric Oyj
TransGaming, Inc.
ePro Ltd.
dominates group

DigitalTown, Inc.
WebMediaBrands Inc
Multiplied Media Corporation
LookSmart, Ltd.
Socialwise, Inc.
Accredited Members Holding Corporation
Tencent’s $32.7 bn market cap

Asknet AG
Ynk Korea Inc.
YouBlast Global, Inc.
Accelerize New Media, Inc.
VOIS, Inc.
NeXplore Corporation
Wizzard Software Corporation
Dolphin Digital Media, Inc.
Northgate Technologies Limited
Lingo Media Corporation
Unilava Corporation
iseemedia Inc.
Jumbuck Entertainment Limited
Internet Group SA
SocialGO PLC
DigitalPost Interactive, Inc.
Kent International Holdings Inc.
MOKO.mobi Limited
SNAP Interactive, Inc.
Beyond Commerce, Inc.
Worlds.com Inc.
SpectrumDNA, Inc.
Kiwibox.Com, Inc.
IAS Energy, Inc.
Oriented Media Group Berhad
Uniserve Communications Corp.
En2Go International, Inc.
BroadWebAsia Inc.
LiveWorld Inc.
www.mackieresearch.com
 Price Performance – 1 Week
• Positive price momentum, with 52% of
stocks rising over the past week. Price Momentum

• Reverses a 2-week downtrend during

Flat
which >60% companies experienced 8%
falling prices.

Rising Falling
52% 40%

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

140.0% 128.1%

120.0%
Virtual World sector shows
highest weekly returns
100.0%

80.0%

60.0%

40.0%
21.3%
20.0% 11.4% 6.9%
6.1% 5.6% 4.5% 4.2% 3.9% 3.6% 3.5% 2.8%
1.1% -1.1%
0.0%
-2.0% -2.5% -3.9%
-20.0% -8.0% -8.5% -9.5%
-17.8%-19.2%
-40.0%

Internet Retail
Infrastructure
Virtual World

Collaboration

Networking
Financial

Payment

Communities
Advertising

Learning
Music
Search

Enterprise

Marketing

Diversified

Gaming

Dating

Podcasting

Mobile
Services

SMS/Voice

Media

Video

Social

Vertical
Source: CapitalIQ

21 www.mackieresearch.com
 22
-100.0%
-50.0%
0.0%
50.0%
100.0%
150.0%
200.0%
250.0%
300.0%
BWBA
ACCM
UOMO
NXPC

Source: CapitalIQ
TSXV:LM
KIWB
TSE:3632
MOTR
MKB
TSXV:TNG
DPDM
TSE:2432
GLUU
WEBM
TSX:FMN
DGTW
SCLW
2121
QPSA
GIGM
A052770
CYOU
TSXV:MM
LOV
MBYL
2497
HUTC
YIPI
A052790
590057
WSE:IGR
WZE
3812
GRVY
IASC.A
PAYD
A023770
TSX:NLN
TSXV:PN
3838
NCTY
OMEDIA
OPWV
ASX:JMB
STVI
DB:M0C
VOIS
GEO1V
LVWD
Price Performance – 1 Week

MYRN
XTRA:A5A
TSCM
3765
RNWK
WSE:PGM
777
A095660
VCLK
O1BC
AOL
VEL
SOHU
CHIN.A
KNTH
KOSE:A06
SFLY
6180
TSX:SCR
NTES
UNTD
DGLP
GA
IACI
SEHK:808
OTEX
TSX:CX
RBCI
TLEO
UNLA
ACLZ
SNDA
700
BYOC
GTSM:308
MTG B
TSXV:USS
CM:DA
3888
NYT
PWRD
TSX:PTS
A066270
SEHK:215
IEE
FRG
YBLT
ETGI
TREE
LOOK
AIM:SGO
SPXA
A047080
WDDD
www.mackieresearch.com
 23
0%
10%
20%
30%
40%
50%
60%

0%
500%
1000%
1500%
2000%
2500%
3000%
OAO RBC HanbitSoft,
Information Inc.
Systems
Frogster
Beyond Interactive

Source: CapitalIQ
Commerce, Inc. Pictures AG

Yippy, Inc.
ePro Ltd.

Points
AQ Interactive, International
Inc. Ltd.

Uniserve
Communications
DADA SpA
Corp.

6 Month
1 Month

AQ
Score Media Inc. Interactive,
Inc.

SNAP Cyberplex
Interactive, Inc. Inc.

HanbitSoft, Inc. Mixi, Inc.

Points
CDC Corp.
International Ltd.

Tree.Com,
LiveWorld Inc.
Inc.
Price Performance (Top 10)

0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%

0%
500%
1000%
1500%
2000%
2500%
3000%
3500%
4000%
4500%
5000%

OAO RBC
YouBlast Global,
Information
Inc.
Systems

Yippy, Inc. ePro Ltd.

Beyond Commerce,
ePro Ltd.
Inc.

Points International
Quepasa Corp.
Ltd.

AQ Interactive, SK Communications
Inc. Co., Ltd.
1 Year
3 Month

Fluid Music
HanbitSoft, Inc.
Canada, Inc.

Velti Plc LookSmart, Ltd.

SK
Communications Velti Plc
Co., Ltd.
Hutchison
Telecommunications
Dena Co. Ltd.
Hong Kong Holdings
Ltd.
Frogster
Interactive Score Media Inc.
Pictures AG
www.mackieresearch.com
 24
-60.0%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%

-100.0%
-90.0%
-80.0%
-70.0%
-60.0%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
TransGaming,
NeXplore
Inc.
Corporation

MOKO.mobi
MOKO.mobi

Source: CapitalIQ
Limited
Limited

Kiwibox.Com, Motricity, Inc.

Inc.

Unilava Gree, Inc.

Corporation

UOMO Media, Kiwibox.Com,

Inc Inc.
1 Week

6 Month
Lingo Media Lingo Media
Corporation Corporation

Mobile Data NeXplore

Corp. Corporation

IAS Energy, UOMO Media,

Inc. Inc

Accredited
En2Go
Members
International,
Holding
Inc.
Corporation

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

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

Wizzard Kiwibox.Com,
Software Inc.
Corporation

Actoz Soft GeoSentric Oyj

Co., Ltd.

Dena Co. Ltd.

Moggle, Inc

Lingo Media VOIS, Inc.

Corporation

SpectrumDNA, NeXplore
Inc. Corporation
1 Year
1 Month

Beyond En2Go
Commerce, International,
Inc. Inc.

YouBlast UOMO Media,

Global, Inc. Inc

UOMO Media, Mobile Data

Inc Corp.

Accredited
En2Go
Members
International,
Holding
Inc. Corporation

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

25 www.mackieresearch.com
 Capital Market Activity – Current Month
C ompany Name C ountry S ector Acquis ition Angel/S eed S eries A S eries B NA G rand Total
ITA S oftware US A S ea rch 700. 0 700. 0
infoG R OUP US A Advertis ing 644. 9 644. 9
Zynga US A G a ming 100. 0 100. 0
S ys omos C a nada Ana lytics 35. 0 35. 0
B uyW ithMe US A S ocial C ommerce 16. 0 16. 0
B eyond The R ack C a nada S ocial C ommerce 12. 0 12. 0
OC TANE 360 US A Advertis ing 10. 9 10. 9
My-wardrobe.com UK Internet R etail 9. 0 9. 0
AdS afe Media US A Advertis ing 7. 3 7. 3
Aurora F eint US A G a ming 5. 0 5. 0
Xgraph US A Ana lytics 3. 8 3. 8
ThredUP US A S ocial C ommerce 1. 7 1. 7
G roupS paces UK V ertica l C ommunities 1. 3 1. 3
Maven R es earch US A C omment/R eputa tion 1. 0 1. 0
S oho OS US A E nterpris e 1. 0 1. 0
L ivefyre US A C omment/R eputa tion 0. 8 0. 8
1390.8 2.0 9.8 23.3 123.8 1549.6

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

Gaming Other
7% 1%
Gaming
13%

Advertising
Search 19%
47%

Advertising
45% Other
62%
Search
6%

27 www.mackieresearch.com
 Financing Activity

July bringing higher-than-average deal

1000.0 16.0
size with average total deal value
900.0 13.7
13.2 14.0

800.0 12.2
12.0
700.0
10.1
9.6 10.0
600.0 8.8
8.1
(US$m)

(US$m)
500.0 7.4 8.0
6.3 6.4
400.0 5.7 5.5
5.3 6.0

300.0
4.0
200.0

2.0
100.0

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

*Dec-09 includes $180m Zynga investment

Apr-10 includes $300m DST investment
Total Average per Deal LTM Total Average**
**Excludes Dec-09, Apr-
Jun-10 includes $147m Zynga investment 10

28 www.mackieresearch.com
 29
(US$m)

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

# companies
6
Search

Advertising

21
Gaming

14
6
Media

Social Commerce

10
Analytics

12
7
Internet Retail

3
Collaboration

Mobile

10
2
Music

5
Virtual World

5
Enterprise

6
Vertical Communities

6
Social Networks

3
Location-based SNS

6
Infrastructure

4
Video
deals, $810 mm)

4
Comment/Reputation
area of interest in the
past three months (21
Advertising the biggest

2
Mobile Ad
1

SMS/Voice
2

Virtual Goods
3

Financial Services
3

Aggregation
1

Widget
2

Publishing
3

Travel
1

Microblog
Capital Market Activity Ranking – by Sector, last three months

Online Learning
Crowdsourced
1

Content
www.mackieresearch.com
 30
(US$ mm)

0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
Jan-08

Feb-08

Mar-08
Apr-08

May-08
Jun-08

Jul-08
Aug-08

Sep-08
Oct-08

Nov-08

Dec-08

Social Networks
Jan-09

Feb-09

Gaming
Mar-09
Apr-09
$ Raised

May-09

Advertising
Jun-09

Jul-09

Video
Aug-09
Sep-09

Oct-09
Nov-09

Virtual World
Dec-09
Jan-10

Feb-10

Mar-10
Apr-10

May-10

Jun-10

Jul-10

No deals in top 5 sectors in July

Top 5 Sectors (2008-present)

(# Deals)
0
5
10
15
20
25
30

Jan-08

Feb-08

Mar-08

Apr-08

May-08

Jun-08
Jul-08

Aug-08

Sep-08

Oct-08

Nov-08

Dec-08
Social Networks

Jan-09

Feb-09

Mar-09
Advertising

Apr-09

May-09
Gaming

Jun-09
# Deals

Jul-09

Aug-09

Sep-09
Virtual World

Oct-09

Nov-09
Video

Dec-09

Jan-10

Feb-10

Mar-10

Apr-10

May-10
Top 5 sectors average $170 mm & 15 deals per month (aggregate)

Jun-10

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

350.0 800

700.0
300.0 700
300.0 644.9

600
247.0
250.0
500

200.0
400

150.0 135.0 300

225.0
187.5
100.0 200 161.5 160.0
142.0 126.5
110.0 100.0
50.0 50.0 100
50.0 44.0 40.0 35.0 33.0 31.0
0

Ankeena Networks
Alloy
ITA Software

Turbine
infoGROUP

Exalead
ICQ

Woot
Jigsaw
Siri
0.0
Technologies

Zynga

LivingSocial

Playdom

HauteLook
Groupon

Gilt Groupe
Glam Media

Tremor Media
Qiyi
Digital Sky

Google invests at least $100 mm in Zynga, bringing YTD total to ~$250 mm

31 www.mackieresearch.com
 Upcoming Events/Earnings
Company Date Time Quarter Conf Call Details
Score Media Inc. (TSX:SCR) 14-Jul-10 16:00 PM (EST) Q3/10 NA
The New York Times Company (NYSE:NYT) 22-Jul-10 11:00 AM (EST) Q2/10 888-293-6979
Sohu.com Inc. (NasdaqGS:SOHU) 26-Jul-10 8:00 AM (EST) Q2/10 1-877-941-6009
IAC/InterActiveCorp. (NasdaqGS:IACI) 28-Jul-10 11:00 AM (EST) Q2/10 NA
Shutterfly, Inc. (NasdaqGS:SFLY) 28-Jul-10 2:00 PM (EST) Q2/10 970-315-0490
Tree.Com, Inc. (NasdaqGM:TREE) 29-Jul-10 11:00 AM (EST) Q2/10 877-874-1588

Source: CapitalIQ

32 www.mackieresearch.com
 Public Company Listing T rading C urre nt US $ Mark e t
C om pany Nam e T ick e r Exchange C ur re ncy HQ Price C ap (m m ) Em ploye e s
A ccelerize New M edia, Inc. ACLZ OTCBB USD United States 1 15.9 10
A ccredited M embers Holding Co rpo ratio n ACCM OTCBB USD United States 1 21.9 8
A cto z So ft Co ., Ltd. A052790 KOSE KRW So uth Ko rea 10,400 76.6 NA
A OL, Inc. AOL NYSE USD United States 21 2,202.7 6,700
A Q Interactive, Inc. 3838 TSE JP Y Japan 172,500 106.0 NA
A sknet AG XTRA :A 5A XTRA EUR Germany 3 20.8 NA
B eyo nd Co mmerce, Inc. BYOC OTCBB USD United States 0 5.3 16
B roadWebA sia Inc. BWB A OTCPK USD United States 0 1.7 46
CDC Co rp. CHIN.A NasdaqGS USD Ho ng Ko ng 2 227.1 2,810
Changyo u.co m Limited CYOU NasdaqGS USD China 26 1,322.7 1,308
Chinese Gamer Internatio nal GTSM :3083 GTSM TWD Taiwan 292 780.2 NA
Cyberplex Inc. TSX:CX TSX CA D Canada 1 47.6 NA
DA DA SpA CM :DA CM EUR Italy 4 87.6 597
Dena Co . Ltd. TSE:2432 TSE JP Y Japan 2,109 3,398.3 NA
DigitalPo st Interactive, Inc. DGLP OTCBB USD United States 0 6.9 6
DigitalTown, Inc. DGTW OTCBB USD United States 1 30.2 4
Do lphin Digital M edia, Inc. DP DM OTCBB USD United States 0 12.1 NA
En2Go International, Inc. ETGI OTCBB USD United States 0 2.9 NA
ePro Ltd. SEHK:8086 SEHK HKD Ho ng Ko ng 1 30.3 707
Fluid M usic Canada, Inc. TSX:FM N TSX CA D United States 2 166.6 NA
Fro gster Interactive P ictures A G FRG XTRA EUR Germany 25 79.9 NA
Gamania Digital Entertainment Co ., Ltd. 6180 GTSM TWD Taiwan 54 265.4 NA
GameOn Co Ltd. 3812 TSE JP Y Japan 73,700 80.5 NA
Geo Sentric Oyj GEO1V HLSE EUR Finland 0 33.9 130
Giant Interactive Gro up, Inc. GA NYSE USD China 7 1,628.9 1,575
GigaM edia Ltd. GIGM NasdaqGS USD Taiwan 2 120.6 NA
Glu M o bile, Inc. GLUU NasdaqGM USD United States 1 35.5 479
Gravity Co ., Ltd GRVY NasdaqGM USD So uth Ko rea 1 40.9 455
Gree, Inc. TSE:3632 TSE JP Y Japan 6,200 3,169.4 NA
GungHo Online Entertainment, Inc. 3765 OSE JP Y Japan 187,900 243.7 NA
HanbitSo ft, Inc. A047080 KOSE KRW So uth Ko rea 6,490 118.1 NA
HUGHES Telematics, Inc. HUTC OTCBB USD United States 3 87.7 276
Hutchison Teleco mmunicatio ns Ho ng Kong SEHK:21
Ho ldings
5 Ltd. SEHK HKD Ho ng Ko ng 2 1,133.7 1,732
IA C/InterActiveCo rp. IA CI NasdaqGS USD United States 22 2,491.6 3,200
IA S Energy, Inc. IA SC.A OTCPK USD Canada 0 3.6 NA
Internet Gro up SA WSE:IGR WSE P LN P o land 1 7.6 NA
iseemedia Inc. IEE TSXV CA D Canada 0 8.4 NA

33 www.mackieresearch.com
 Public Company Listing cont.
T rading C urr e nt US $ Mark e t
C om pany Nam e T ick e r Exc hange C ur re nc y HQ Price C ap (m m ) Em ploye e s
Jumbuck Entertainment Limited A SX:JM B A SX A UD A ustralia 0 8.1 79
Kent Internatio nal Ho ldings Inc. KNTH OTCP K USD United States 2 6.8 NA
Kingso ft Co rpo ratio n Limited 3888 SEHK HKD China 4 564.3 2,735
Kiwibo x.Co m, Inc. KIWB OTCB B USD United States 0 3.7 6
Lingo M edia Co rpo ratio n TSXV:LM TSXV CA D Canada 0 11.3 NA
LiveWo rld Inc. LVWD OTCP K USD United States 0 1.2 NA
Lo o kSmart, Ltd. LOOK NasdaqGM USD United States 1 24.7 65
M ixi, Inc. 2121 TSE JP Y Japan 443,000 774.1 NA
M o bile Data Co rp. M B YL OTCB B USD United States 0 1.1 NA
M o dern Times Gro up M tg A B M TG B OM SEK Sweden 449 3,937.2 2,936
M o ggle, Inc DB :M 0C DB EUR United States 1 49.9 2
M OKO.mo bi Limited M KB A SX A UD A ustralia 0 6.2 NA
M o tricity, Inc. M OTR NasdaqGM USD United States 7 270.2 355
M ultiplied M edia Co rpo ratio n TSXV:M M C TSXV CA D Canada 0 26.6 NA
M yriad Gro up A G M YRN SWX CHF Switzerland 4 196.6 778
NEOWIZ Games Co rpo ratio n A 095660 KOSE KRW So uth Ko rea 38,200 669.2 NA
NetDrago n WebSo ft, Inc. 777 SEHK HKD China 4 242.4 2,901
Netease.co m Inc. NTES NasdaqGS USD China 34 4,367.9 4,624
NeuLio n Inco rpo rated TSX:NLN TSX CA D Canada 0 49.5 224
NeXplo re Co rpo ratio n NXP C OTCP K USD United States 0 13.9 NA
Ngi Gro up Inc. 2497 TSE JP Y Japan 31,150 45.2 NA
No rthgate Techno lo gies Limited 590057 B SE INR India 16 12.0 NA
OA O RB C Info rmatio n Systems RB CI M ICEX RUB Russia 35 153.7 2,523
Open Text Co rp. OTEX NasdaqGS USD Canada 39 2,216.7 3,700
Openwave Systems Inc. OP WV NasdaqGS USD United States 2 162.7 590
Oriented M edia Gro up B erhad OM EDIA KLSE M YR M alaysia 0 3.3 NA
P aid Inc. P A YD OTCB B USD United States 0 70.5 20
P erfect Wo rld Co ., Ltd. P WRD NasdaqGS USD China 25 1,236.2 2,896
P latfo rma M edio wa P o int Gro up S.A . WSE:P GM WSE P LN P o land 1 47.4 NA
P NI Digital M edia Inc. TSXV:P N TSXV CA D Canada 1 47.2 NA
P o ints Internatio nal Ltd. TSX:P TS TSX CA D Canada 1 101.1 93
Quepasa Co rp. QP SA OTCB B USD United States 4 48.0 71
RealNetwo rks Inc. RNWK NasdaqGS USD United States 3 447.7 1,754
Sco re M edia Inc. TSX:SCR TSX CA D Canada 1 68.1 230
Shanda Interactive Entertainment Ltd. SNDA NasdaqGS USD China 40 2,394.7 5,721
Shutterfly, Inc. SFLY NasdaqGS USD United States 25 659.0 519
34 www.mackieresearch.com
 Public Company Listing cont.
T rading C ur re nt US $ Mar k e t
C om pany Nam e T ick e r Exc hange C ur re ncy HQ Pr ice C ap (m m ) Em ploye e s
SK Co mmunicatio ns Co ., Ltd. A 066270 KOSE KRW So uth Ko rea 20,000 684.4 519
SNA P Interactive, Inc. STVI OTCB B USD United States 0 5.6 NA
So cialGO P LC A IM :SGO A IM GB P United Kingdo m 0 7.0 15
So cialwise, Inc. SCLW OTCB B USD United States 0 23.0 9
So hu.co m Inc. SOHU NasdaqGS USD China 41 1,566.0 NA
Spark Netwo rks, Inc. LOV A M EX USD United States 3 64.2 3,997
SpectrumDNA , Inc. SP XA OTCB B USD United States 0 4.8 155
Taleo Co rp. TLEO NasdaqGM USD United States 25 989.2 8
Tencent Ho ldings Ltd. 700 SEHK HKD China 139 32,658.2 916
The New Yo rk Times Co mpany NYT NYSE USD United States 9 1,367.2 7,845
The9 Limited NCTY NasdaqGS USD China 4 108.4 7,665
TheStreet.co m, Inc. TSCM NasdaqGM USD United States 3 90.6 1,010
TransGaming, Inc. TSXV:TNG TSXV CA D Canada 1 30.4 274
Tree.Co m, Inc. TREE NasdaqGM USD United States 7 81.8 28
Unilava Co rpo ratio n UNLA OTCB B USD United States 0 8.5 700
Uniserve Co mmunicatio ns Co rp. TSXV:USS TSXV CA D Canada 0 3.3 40
United Online, Inc. UNTD NasdaqGS USD United States 6 505.4 NA
UOM O M edia, Inc UOM O OTCB B USD Canada 0 1.0 1,699
ValueClick, Inc. VCLK NasdaqGS USD United States 11 872.6 NA
Velti P lc VEL A IM GB P United Kingdo m 4 233.6 1,086
VOIS, Inc. VOIS OTCB B USD United States 0 14.2 459
WebM ediaB rands Inc WEB M NasdaqGS USD United States 1 28.4 2
Webzen Inc. KOSE:A 069080 KOSE KRW So uth Ko rea 10,950 107.8 83
Wizzard So ftware Co rpo ratio n WZE A M EX USD United States 0 12.9 326
Wo rlds.co m Inc. WDDD OTCB B USD United States 0 5.2 80
XING A G O1B C XTRA EUR Germany 28 183.5 1
YD Online Co rp. A 052770 KOSE KRW So uth Ko rea 4,200 52.3 293
Yippy, Inc. YIP I OTCB B USD United States 3 61.3 NA
Ynk Ko rea Inc. A 023770 KOSE KRW So uth Ko rea 2,900 19.2 NA
Yo uB last Glo bal, Inc. YB LT OTCB B USD United States 0 16.2 NA

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

1. None applicable.

ANALYST CERTIFICATION
Each analyst of Mackie Research Capital Corporation whose name appears in this report
hereby certifies that (i) the recommendations and opinions expressed in this research
report accurately reflect the analyst’s personal views and (ii) no part of the research
analyst’s compensation was or will be directly or indirectly related to the specific
conclusions or recommendations expressed in this research report.

This report has been created by Analysts that are employed by Mackie Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report.
Information about Mackie Research Capital Corporation’s Rating System, the distribution of our research to clients and the percentage of recommendations which are in each of our rating categories
is available on our web site at www.mackieresearch.com.
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36 www.mackieresearch.com