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09-04-28 Web 2.0 Weekly 

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Slide 1: SOFTWARE & SERVICES 28 APRIL 2009 WEB 2.O WEEKLY DAVID SHORE, CFA, MBA 416.860.6784 david.shore@researchcapital.com Arun Thomas (Associate) 416.860.7666 WEEK FO UR IN APRIL MOSTLY Q UIET; MEDIA COMPANY BATANGA RAISES $7.5 MILLION PI C K- U P I N ACT I VIT Y ON L Y MA RG IN AL IN W EE K F OU R The fourth week of April had only a marginal number of capital raises (four) and not enough to push the month above March and February levels. Total financings (month-to-date) were $102.3 million, with February and March closing off at $185.5 mm and $159.5 mm, respectively. As of last week, a total of 16 deals closed, with the $20 million raise by Collective Media and $16 million by GOOM Radio being major contributors. W ith four days left in April, it is evident that the month may likely finish at or slightly below March levels, unless a few high dollar financings materialize. W e speculate that capital market activity in April (for W eb 2.0 companies) worldwide has dropped from prior months, potentially as a follow-on (time lagged) effect of the equity markets. W ith a seeming capital market revival on the horizon (as exhibited by stock market index levels) and if sustainable, we should expect institutional investors to participate in venture capital funds or direct investments in private companies – albeit slowly. Financing Activity Last Three Months 200.0 8.0 180.0 7.0 160.0 6.0 140.0 5.0 120.0 (US$m) (US$m) 100.0 4.0 80.0 3.0 60.0 2.0 40.0 1.0 20.0 0.0 Feb-09 Mar-09 Total Average Apr-09 0.0 Capital Market Activity: Four weeks into April and we saw 16 companies raising money, with GOOM Radio and Collective Media still leading the list with $16 million and $20 million, respectively. The largest raise last week was by Batanga – raising $7.5 million. The month-to-date total capital raised stands at $102.3 million. The Rubicon Project (ad network sector) and Cellufun (gaming sector) followed GOOM Radio, raising $13 million and $10 million, respectively. Price Performance: Most of the companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1), with 22 companies showing positive returns on the week. Modern Times Group Mtg AB (MTG B-OM) led the group with a 27.7% return, while DigitalTown Inc. (DGTW -OTCBB) had the worst return, dropping 21.7% in the week. Two companies had better than 20% price increases last week. This report has been created b y Anal ysts that are emplo yed b y Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report. T o ro n t o 4 1 6 . 8 6 0 . 7 6 0 0 Montreal 514.399.1500 w w w . r e s e a rc h c a p i t a l . c o m Vancouver 604.662.1800 Calgary 403.265.7400 Regina 306.566.7550
Slide 2: Page 2 THE WEB 2.0 UNIVERSE Ninety-tw o public Web 2.0 companies identified: Our W eb 2.0 universe contains 92 companies, with a combined market cap of ~ $41 billion (Figure 1). The average market cap for the group is ~$452 million (but a median of only $45.8 million), with average trailing revenue of $145.7 million (median $51.8 million). The companies are also generally profitable, with a median EBITDA margin of 17.6%. On a valuation basis, the overall average is 4.7x trailing revenue (median 1.3x) and 9.1x trailing EBITDA (median 7.6x). Thirteen of the companies have more than 500 employees. C omparable C ompany A nalys is > W eb 2.0 C om pan y Nam e Acce le rize N ew Me dia, Inc. Actoz S of t C o., L td. AQ Inte ractive , Inc. As s ocia ted Media H oldings Inc. B igstring Corp. B e tawave Corpora tion B e yond Commerce, Inc. B right T hings plc B roa dW ebAs ia Inc. C DC C orp. C hina G ate wa y C orpora tion C hine s e G amer International C ornerW orld C orporation C yberplex Inc. D ADA S pA D XN Holdings B hd D ibz Inte rnational, Inc. D igitalP ost Inte ra ctive , Inc. D igitalT own, Inc. D olphin D igital Me dia, Inc. E olith C o. L td. E xte ns ions , Inc. F inancia l Media G roup, Inc. F luid Mus ic Ca nada, Inc. F rogs te r Interactive P icture s AG G a ma nia Digital E ntertainment C o., L td. G a me On C o L td. G e oS e ntric O yj G iant Intera ctive G roup, Inc. G iga Media Ltd. G ravity C o., L td G ree, Inc. G ungH o O nline E ntertainment, Inc. H anbitS of t, Inc. IAC /InterActiveC orp. IAS E nergy, Inc. IdeaE dge, Inc. is ee media Inc. J umbuck E ntertainment P ty Ltd. J umpT V Inc. K a boos e Inc. K ings oft Co. Ltd. Lingo M edia Corporation Live World Inc. LookS mart, Ltd. Magnitude Information S ys tems Inc. Mixi, Inc. Mode rn Times G roup Mtg AB Moggle , Inc MOK O.mobi L imited N E OW IZ G ames C orpora tion N etD ragon W ebS oft, Inc. N ete as e.com I nc. N eXplore Corpora tion N gi G roup Inc. N orthgate Te chnologies L imited Open T e xt Corp. Openwave S ys tems Inc. P e rf ect W orld C o., Ltd. P hotoChannel N etwork s Inc. Quepa s a C orp. OA O R B C Information S ys tems S handa Interactive E ntertainme nt L td. S hutte rf ly, Inc. S K C ommunications Co., Ltd. S N AP Inte ra ctive , Inc. S N M G lobal H oldings S ocia l Media Ve nures , Inc. S ohu. com Inc. S ite s earch C orporation S park Networks , Inc. S pectrumDNA, Inc. T encent Holdings L td. T he Parent C ompany T he 9 L imited T he S treet.com, Inc. T otal S port Online A S T ree.C om, Inc. U nis erve C ommunications Corp. U nited Online Inc. U OMO Media , Inc V a lueC lick Inc. V O IS , Inc. W ebze n Inc. W izza rd S of twa re Corpora tion W oozyF ly, Inc. W orlds .com Inc. W ynds torm C orporation XIN G AG Y e dangOnline Corp. Y nk K orea Inc. ZipLocal Inc. H igh Low A vera ge Median L TM as o f T ic ker 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 6 /30 /200 7 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 9 /30 /200 8 9 /30 /200 8 9 /30 /200 8 9 /30 /200 8 1 2/31 /200 8 1 /31 /200 9 1 2/31 /200 8 9 /30 /200 8 1 1/30 /200 8 NA 9 /30 /200 8 1 1/30 /200 8 NA 1 2/31 /200 7 1 2/31 /200 8 1 1/30 /200 8 9 /30 /200 8 6 /30 /200 8 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 9 /30 /200 8 6 /30 /200 8 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 1 /31 /200 9 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 9 /30 /200 8 1 2/31 /200 8 1 2/31 /200 8 9 /30 /200 8 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 7 1 2/31 /200 8 1 2/31 /200 8 9 /30 /200 7 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 7 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 7 1 2/31 /200 8 9 /30 /200 8 1 2/31 /200 8 1 2/31 /200 8 1 /31 /200 9 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 8/2/2008 1 2/31 /200 8 1 2/31 /200 8 3 /31 /200 6 1 2/31 /200 8 1 1/30 /200 8 1 2/31 /200 8 1 /31 /200 9 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 9 /30 /200 8 NA 1 2/31 /200 8 1 2/31 /200 7 1 2/31 /200 7 1 2/31 /200 8 AC LZ A0 527 90 38 38 AS MH BS G C BW AV BY OC AIM:B G T BW B A C HIN .A CGWY G T S M:308 3 C WR L T S X:C X C M:DA DXN DIB Z DG LP DG T W DP DM A0 410 60 E XT I F NG P T S X:F MN FRG 61 80 38 12 G E O1 V GA G IG M G R VY T S E : 363 2 37 65 A0 470 80 IAC I IAS C.A OT C B B :IDAE IE E AS X:J MB T S X:J T V T S X:K AB 38 88 T S XV : LM LV WD LOOK MA G Y 21 21 MT G B MMOG MK B A0 956 60 77 7 NT E S NXP C 24 97 59 005 7 OT E X OP W V PW R D T S XV : P N QP S A R BC I S N DA S F LY A0 662 70 ST VI S N MN S M VI S OH U STPC LOV S P XA 70 0 K IDS .Q NCT Y TSC M T OS O TR EE T S XV : US S U NT D U OMO VC LK VOIS W ZE N W ZE W ZY F W DD D W YND O1B C A0 527 70 A0 237 70 T S XV : ZIP E xc h ang e OT C B B K OS E TSE OT C P K OT C B B OT C B B OT C B B AIM OT C P K Nas da qG S OT C B B GT S M OT C B B TSX CM KL SE OT C P K OT C B B OT C B B OT C B B K OS E OT C P K OT C B B TSX XT R A GT S M TSE H LS E NY S E Nas da qG S Nas da qG M TSE OS E K OS E Nas da qG S OT C B B OT C B B T S XV AS X TSX TSX S E HK T S XV OT C P K Nas da qG M OT C B B TSE OM OT C B B AS X K OS E S E HK Nas da qG S OT C P K TSE BS E Nas da qG S Nas da qG S Nas da qG S T S XV Nas da qC M R TS Nas da qG S Nas da qG S K OS E OT C B B OT C P K OT C P K Nas da qG S OT C B B AME X OT C B B S E HK OT C P K Nas da qG S Nas da qG M OT C NO Nas da qG M T S XV Nas da qG S OT C B B Nas da qG S OT C B B Nas da qG M AME X OT C B B OT C B B OT C B B XT R A K OS E K OS E T S XV Trading Cu rrenc y H Q USD KR W JPY USD USD USD USD GBP USD USD USD TWD USD C AD EUR MY R USD USD USD USD KR W USD USD C AD EUR TWD JPY EUR USD USD USD JPY JPY KR W USD USD USD C AD AU D C AD C AD HKD C AD USD USD USD JPY S EK USD AU D KR W HKD USD USD JPY INR USD USD USD C AD USD USD USD USD KR W USD USD USD USD USD USD USD HKD USD USD USD NOK USD C AD USD USD USD USD USD USD USD USD USD EUR KR W KR W C AD U nited S ta tes S outh K orea J apan U nited S ta tes U nited S ta tes U nited S ta tes U nited S ta tes U nited K ingdom U nited S ta tes H ong K ong U nited S ta tes T aiwan U nited S ta tes C ana da Ita ly Ma la ys ia U nited S ta tes U nited S ta tes U nited S ta tes U nited S ta tes S outh K orea U nited S ta tes U nited S ta tes U nited S ta tes G ermany T aiwan J apan F inland C hina T aiwan S outh K orea J apan J apan S outh K orea U nited S ta tes C ana da U nited S ta tes C ana da Aus tra lia C ana da C ana da C hina C ana da U nited S ta tes U nited S ta tes U nited S ta tes J apan S weden U nited S ta tes Aus tra lia S outh K orea C hina C hina U nited S ta tes J apan India C ana da U nited S ta tes C hina C ana da U nited S ta tes R us s ia C hina U nited S ta tes S outh K orea U nited S ta tes U nited S ta tes U nited S ta tes C hina U nited S ta tes U nited S ta tes U nited S ta tes C hina U nited S ta tes C hina U nited S ta tes N orwa y U nited S ta tes C ana da U nited S ta tes C ana da U nited S ta tes U nited S ta tes S outh K orea U nited S ta tes U nited S ta tes U nited S ta tes U nited S ta tes G ermany S outh K orea S outh K orea C ana da Current Pr ic e 0 .49 14, 700 47 ,100 .00 0 0 .01 0 1 .49 0 0 .45 1 0 .00 215 0 .10 1 5 .85 0 0 .00 0 2 .35 1 760 .00 0 0 .00 0 9 .06 32 92 ,000 .00 0 8 .50 7 0 .90 5, 650 139 ,000 .00 4, 770 15 .92 0 0 .44 0 0 .47 1 0 .59 4 0 .90 0 1 .36 0 483 ,000 .00 212 2 .30 0 58 ,400 .00 5 30 .25 1 36 ,300 .00 46 33 .54 1 16 .78 2 0 .87 1 47 .30 10 10 ,000 .00 1 0 .01 0 50 .53 3 2 .25 0 65 .95 0 9 .21 2 0 .03 6 0 .04 5 0 .06 10 0 .30 3 0 .55 0 0 .17 0 29 .77 9, 670 4 ,700 .00 0 U S D Market C ap ($m) 1 3.4 9 3.2 2 6.2 0 .1 0 .7 3 .2 6 1.6 5 .0 3 8.2 12 6.3 0 .0 54 0.7 6 .4 5 3.8 12 3.7 2 0.2 0 .0 1 .3 6 3.6 2 6.1 4 0.7 1 4.2 0 .3 1 5.0 2 7.8 14 4.4 9 0.9 4 6.7 1,9 21.0 36 4.7 2 5.0 1,2 88.0 16 2.7 7 7.9 2,2 43.9 1 7.5 1 8.8 4 .2 1 6.4 5 1.0 6 7.4 51 5.9 9 .5 3 .1 2 3.1 6 .5 75 7.4 1,6 68.7 8 3.5 4 .4 41 8.5 31 3.1 3,7 22.3 4 1.8 4 5.8 3 1.9 1,7 40.7 9 9.1 88 5.3 4 3.3 1 1.1 10 5.7 3,2 81.8 25 5.1 30 6.4 7 .0 0 .0 0 .0 1,9 26.0 2 8.2 4 6.3 9 .7 15,3 25. 4 0 .3 24 7.0 7 1.9 0 .1 5 8.3 0 .8 39 0.2 5 .1 84 0.6 2 .5 3 3.0 2 5.9 2 .6 8 .9 1 .6 19 9.0 11 2.7 8 .6 0 .3 15,3 25. 4 0 .0 451.8 4 5.8 U S D LT M Total R ev ($m) 3.8 69. 5 61. 6 0.1 0.1 7.7 1.8 0.2 0.0 428 .1 6.7 46. 2 1.3 46. 7 221 .2 76. 7 NA 0.4 NM NA 18. 6 NM 6.8 4.2 5.3 111 .5 76. 2 5.7 233 .6 190 .4 36. 5 30. 0 114 .9 51. 8 1 ,44 5.1 0.0 0.0 1.2 12. 7 13. 4 66. 8 120 .2 3.3 11. 8 65. 0 0.1 119 .8 1 ,57 2.8 NM 1.0 134 .3 87. 3 451 .8 NM 100 .4 135 .1 769 .3 199 .6 210 .5 16. 2 0.1 141 .0 522 .7 213 .5 154 .5 3.0 2.0 0.1 429 .1 NM 57. 3 0.1 1 ,04 7.9 112 .0 250 .2 71. 9 2.0 228 .6 24. 4 669 .4 0.6 625 .8 0.0 21. 2 6.1 NM 0.1 NA 45. 6 51. 1 14. 5 2.6 1 ,572 .8 0.0 145.7 51. 8 US D L TM T otal E B ITDA ($m) (4 .8) 1 3.9 4 .9 (2 .3) (2 .1) (1 1.8) (8 .6) (1 .6) (4 .6) 1 8.8 (6 .6) 2 3.3 NM 3 .9 3 5.3 1 0.2 NM (3 .3) (2 .5) NM (0 .1) NM 1 .2 (8 .6) (3 .2) 1 6.1 1 9.7 (1 2.8) 14 4.6 4 6.0 7 .0 1 0.8 2 0.5 (1 4.6) 6 4.6 (0 .8) (4 .6) (4 .8) 4 .7 (8 .4) 6 .6 4 6.3 (1 .4) (0 .5) (2 .0) (3 .2) 4 5.6 25 3.7 (1 .1) (2 .1) 3 6.1 3 9.9 29 3.7 (4 .9) 3 0.9 2 3.8 19 5.0 (1 0.2) 11 3.9 (0 .8) (1 1.4) 1 8.4 24 0.2 2 8.4 1 4.5 0 .9 (0 .7) (0 .1) 18 0.5 (1 .1) 1 2.3 (2 .5) 51 2.5 (1 3.5) 8 4.3 7 .0 (1 .0) (2 3.9) 0 .1 15 3.9 (0 .5) 11 3.6 (1 .3) (4 .2) (6 .0) NM NM NM 1 4.6 1 1.4 (1 .1) (2 .8) 51 2.5 -23.9 32.0 1 .2 E B ITDA % NM 20 .0% 8 .0% NM NM NM NM NM NM 4 .4% -9 8.9% 50 .5% NM 8 .4% 16 .0% 13 .3% NM NM NM NM -0 .3% NM 18 .3% NM -6 0.6% 14 .5% 25 .9% NM 61 .9% 24 .2% 19 .2% 36 .0% 17 .8% -2 8.2% 4 .5% NM NM NM 37 .2% -6 2.6% 9 .9% 38 .5% -4 2.5% -4 .3% -3 .1% NM 38 .0% 16 .1% NM NM 26 .9% 45 .7% 65 .0% NM 30 .8% 17 .6% 25 .3% -5 .1% 54 .1% -4 .9% NM 13 .1% 46 .0% 13 .3% 9 .4% 31 .4% -3 4.8% -6 0.5% 42 .1% NM 21 .5% NM 48 .9% -1 2.0% 33 .7% 9 .7% -5 0.6% -1 0.4% 0 .4% 23 .0% -7 8.2% 18 .2% NM -1 9.8% -9 8.2% NM NM NM 32 .0% 22 .4% -7 .6% NM 65 .0% -9 8.9% 6.9% 17 .6% TE V/LT M R evenu e 4.7 x 0.9 x 8.1 x 23.6 x 35.5 x 20.6 x 0.4 x 6.0 x 1.1 x 0.8 x 0.5 x 5.6 x 2.2 x 0.0 x 5.2 x 1.1 x 0.4 x 6.9 x 1.5 x 40.8 x 1.2 x 1.2 x 0.3 x 2.1 x 0.9 x 2.6 x 1.1 x 3.7 x 3.1 x 0.2 x 5.4 x 1.4 x 3.3 x 3.0 x 1.9 x 0.2 x 2.4 x 0.1 x 2.6 x 0.0 x 0.1 x 0.8 x 2.0 x 1.8 x 1.1 x 0.0 x 3.8 x 0.8 x 15.9 x 0.2 x 4.6 x 0.3 x 0.1 x 1.0 x 8.6 x 1.1 x 4.3 x 3.1 x 2.2 x 0.6 x 0.6 x 40.8 x 40.8 x 4.7x 1.3 x T E V/LT M E B IT DA 4.7x 9.7x 1 3.3 x 4.7x 3.9x 7.8x 1.7x 6.3x 6.9x 7.6x 2.5x 1 1.2 x 9.5x 1 4.3 x 8.5x 1 1.3 x 4.2x 1.3x 9.6x 0.2x 0.3x 5.9x 2 1.1 x 5.8x 9.0x 3.8x 3 2.5 x 2 9.5 x 4.5x 6.3x 9.8x 9.8x 3 2.5 x 3 2.5 x 9.1x 7.6x E mployees 11 NA NA 3 4 45 43 3 ,12 5 37 NA NA NA 574 NA NA 11 3 6 NA NA 22 29 NA NA NA 94 NA NA 636 NA NA NA 3 ,20 0 NA NA NA 72 237 NA 2 ,27 1 NA NA 90 13 NA 2 ,96 9 3 NA NA 2 ,42 6 NA 19 NA 286 3 ,40 0 627 NA NA 74 NA NA 514 NA 11 33 NA 3 ,19 7 15 183 7 6 ,19 4 347 NA 310 16 700 NA 1 ,46 9 NA 1 ,18 9 4 NA 110 NA 1 NA 174 NA NA NA 2 0,16 4 20 ,16 4 0 1,122 183 Figure 1. Web 2.0 Universe Summary Source. Capital IQ
Slide 3: 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 ) Marginal activity - April financing will likely be below March: Last week closed with 16 financings (month-to-date April) totalling $102.3 million. The month of April (so far) has registered four deals greater than or equal to $10 million and two deals greater than $15 million. The month of March registered 22 financings (total $130.7 million, average $5.9 million) compared to 25 financings announced in February, totalling $185.5 million, or $7.4 million on average (Figure 2). The average value for February was above the $6.8 million average for January, with four financings over $15 million in February (Twitter, Synthasite, Tremor Media, and Offerpal Media) vs. no deals over $15 million in January. Financing Activity Last Three Months 200.0 8.0 180.0 7.0 160.0 6.0 140.0 5.0 120.0 (US$m) (US$m) 100.0 4.0 80.0 3.0 60.0 2.0 40.0 1.0 20.0 0.0 Feb-09 Mar-09 Total Average Apr-09 0.0 Figure 2. Financings, Last Three Months Source. Company reports Collective Media largest deal in April: Four weeks into April and Collective Media tops the list with a $20 million raise, followed by Goom Radio and The Rubicon Project with $16 million and $13 million, respectively (Figure 3). For additional details, see Figures 23 and 24 (at end of note).
Slide 4: (US$m) 10.0 15.0 20.0 25.0 30.0 35.0 40.0 0.0 5.0 Figure 3. Capital Market Activity, Last Three Months Source. Company reports Financing Summary - Last Three Months Twitter Kaixin001.com Collective Media Synthasite Tremor Media GOOM Radio Vidyo Offerpal Media Imagini The Rubicon Project Buzznet Emergent Game Outbrain LendingClub SendMe Inc. Miva Auditude Cellufun Glam Media Visible Measures SuperSecret Tvtrip GoViral ScanScout Batanga Tongxue Oodle Greystripe Wamba DoubleTwist OMGPOP Socialtext TextDigger OneSpot Mixercast Apture Simulmedia Mixpo FetchDog Virtual Fairground Tynt SoundCloud AnySource Media Pixazza 7 Billion People TubeMogul FamilyLink.com Tribal Nova WhistleBox Tripbase Hunch Bit.ly Sports Composite DE Mendeley Outright Tvinci Filtrbox Socialcast Scan & Target MMO Life AdultSpace Cake Financial Myngle 33Across fav.or.it Three Melons Foodista Apr-09 Mar-09 Feb-09 Page 4 Social Networks is the most active sector: Activity over the last three months was busiest in the Social Networks sector, with 12 companies raising over $74.4 million (Figure 4). The video sector has the next highest totals, with eight companies raising $63.4 million.
Slide 5: Page 5 Capital Market Activity by Sector - Last Three Months 80.0 70.0 60.0 50.0 (US$m) 40.0 74.4 30.0 63.4 57.4 41.9 41.4 20.0 37.0 22.5 20.6 10.0 16.0 15.0 12.0 12.0 11.0 Travel 6.5 Virtual World 5.5 Mobile Ad Comment/Reputation 0.0 Gaming Microblog Media Wiki Mobile Social Networks Virtual Goods Lending Aggregation Video Ad Network Analytics 4.3 Search 4.1 Publishing 4.1 Widget 3.9 Infrastructure 3.1 Visual Commerce 2.0 Crowdsourced Content 2.0 Financial Services 1.4 1.3 SAS 1.3 Online Learning 1 # companies 12 8 9 5 7 2 4 2 3 1 1 1 2 2 1 1 1 1 1 1 1 1 1 1 Figure 4. Capital Market Activity, by Sector, Last Three Months Source. Company reports 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 outperforms: Our W eb 2.0 index (market-cap weighted) essentially mirrored the performance of the NASDAQ composite index from mid-2008 until recently when it has moved higher than the NASDAQ index (Figure 5).
Slide 6: Page 6 Web 2.0 Index Price Performance 120 100 80 60 40 20 0 4/28/2008 5/12/2008 5/26/2008 6/23/2008 7/21/2008 8/18/2008 9/15/2008 9/29/2008 1/19/2009 2/16/2009 3/16/2009 3/30/2009 4/13/2009 10/13/2008 10/27/2008 11/10/2008 11/24/2008 12/22/2008 4/27/2009 12/8/2008 6/9/2008 7/7/2008 8/4/2008 9/1/2008 1/5/2009 2/2/2009 3/2/2009 ^COMP - Share Pricing Figure 5. Web 2.0 Price Performance Source. Capital IQ Index: Web 2.0 X (Market Cap) A positive week: Most of the companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with 22 companies showing positive returns on the week. Modern Times Group Mtg AB (MTG B-OM) led the group with a 27.7% return while DigitalTown Inc. (DGTW -OTCBB) had the worst return, dropping 21.7% in the week.
Slide 7: Page 7 1 Week P rice P erformance Modern Times G roup Mtg A B Eolith Co. Ltd. LookS mart, Ltd. DA DA S pA Chines e Gamer International HanbitS of t, Inc. GungHo Online Entertainment, Inc. Giant Interactive G roup, Inc. XING A G S ohu.com Inc. Frogs ter Interactiv e Pictures A G S handa Interactive Entertainment Ltd. Webz en Inc. Perfect World Co., Ltd. Neteas e.com Inc. V alueClick Inc. TheS treet.com, Inc. G ree, Inc. Tree.Com, Inc. Cy berplex Inc. Gamania Digital Entertainment Co., A Q Interactiv e, Inc. A ctoz S of t Co., Ltd. United Online Inc. G ameOn Co Ltd. B ey ond Commerce, Inc. G igaMedia Ltd. Openw ave S y s tems Inc. IA C/InterA ctiveCorp. S hutterf ly , Inc. The9 Limited S park Netw orks , Inc. Open Tex t Corp. PhotoChannel Netw orks Inc. CDC Corp. DigitalTow n, Inc. -30.0% Figure 6. 1-Week Price Performance Source. Capital IQ 27.7% 21.6% 19.9% 17.3% 14.7% 14.7% 13.7% 11.8% 10.3% 8.8% 8.5% 6.4% 5.7% 5.3% 4.6% 4.4% 4.0% 3.7% 2.8% 2.5% 0.8% 0.2% 0.0% -0.2% -0.2% -0.7% -1.0% -1.7% -1.7% -3.5% -4.0% -4.3% -4.5% -5.5% -15.7% -21.7% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0%
Slide 8: Page 8 INDUSTRY NEWS (PARTNERSHIPS, FINANCIAL RESULTS, NEW PRODUCTS) K ey Developments C ompany S hutterfly, Inc . (Nas daqG S : S FL Y) Headline Notes S hutterfly E xpands B eyond P hotos with New C oordina ted S hutterfly Inc. a nnounced the expa ns ion of its s ta tionery collection to include a n a rra y of new products a nd hundreds of exclus ive des igns by S uites of Des igner S ta tionery s ome of the indus try's mos t celebra ted des igners . B uilding on S hutterfly's pos ition in ca rds , the new pers ona l s ta tionery line grows the C ompa ny's des igns to ca ter to a variety of life's celebra tions . S hutterfly's s uite of s tationery now offers new items s uch a s pers ona lized pa rty invita tions . S hutterfly's S ta tionery C ollection Includes , E xpa nded occa s ions for 5x7 s tationery ca rds . F rom moving a nnouncements to birthda y invitations for a ll a ges a nd s ocia l corres pondence cards , S hutterfly's premium non-photo offering comes on hea vy-weight ca rds tock with envelopes . Ma de from 30% pos t-cons umer wa s te, 5x7 s ta tionery cards a re s old in s ets , from $1. 39 per ca rd. New, s ma ller 4. 25x5. 5 s ta tionery ca rds . Ma ny of the new des igns ha ve coordina ted 4. 25x5. 5 tha nk you ca rds for a nnouncements a nd invita tions . T he s maller ca rd provides a n elega nt wa y to s end a ha nd-written thank you or a note to s a y a s imple hello. C a rds a re s old in s ets with envelopes , from $0. 89 per ca rd. Des igner a ddres s la bels . T he new s tylis h, coordina ted a ddres s la bels a llow cus tomers to a dd a s ma ll, but noticeable, pers ona l touch V O IS Inc. L a unches New S ocia l S ourcing W ebs ite V OIS Inc. la unched a new s ocia l s ourcing webs ite a imed a t s licing through the ma la is e and red ta pe of the tra ditiona l recruitment a nd employment model. V ois . com a ims to be the firs t s ocia l commerce s ite tha t levera ges the power of s ocia l networking to help a global audience find a nd offer immedia te work. W ith V OIS , members can pos t work, find work a nd network--a ll without ironing s lacks or vis iting K inkos . F rom the profes s ional's pers pective, get to build ra pport with peers , form virtual cros s -functiona l tea ms , a nd then bid on a nd ta ckle both temporary a nd perma nent projects . B uyers a nd s ellers a re encouraged to get to know more tha n each other's online ha ndles a nd hourly ra tes through cha t rooms , interna l mes s aging, robus t profiles a nd even a trus ty rating s ys tem. W hile s ta nda rd freela nce ma rketpla ces typica lly ta ke between 8-20% of the provider's payment by notorious ly nickel a nd diming us ers with fees and fine print, V OIS is a dhering to a 'F reemium' model. T his model offers a free vers ion of its webs ite to a ny member but is s upported by pa id credits of its mos t frequent us ers . Digita lF X Interna tiona l Inc. a nnounced tha t it ha s enga ged lea ding direct s elling indus try expert R icha rd B urnett, a s a s pecia l a dvis or to ma na gement to front its s a les and ma rketing efforts within its independent dis tributor network. B urnett's enga gement is a critica l pa rt of the compa ny's continued efforts to ens ure s us ta ina bility a nd reliability, a nd to s et the s ta ge for future growth. His res pons ibilities will include as s es s ing a nd improving a ll a s pects of the company's a ffiliate network, a nd he will a ls o s upport the ma na gement team in its efforts to further develop the C ompa ny's ma rket pos ition. R icha rd B urnett is F ounder & C E O of T op G un Network Inc. a nd ha s a 30 year tra ck record of helping individua ls a nd compa nies dra ma tica lly increa s e s a les a nd improve lea ders hip performa nce. C DC C orp. a nnounced tha t it pla ns to explore s trategic growth a lterna tives for its three core bus ines s tha t ha ve together increa s ed 2008 aggrega te Adjus ted E B IT DA (a ) from continuing opera tions (b) by 34% compa red to 2007. T he three core bus ines s es a re C DC S oftwa re C orporation, C DC G loba l S ervices a nd C DC G a mes L imited. P eter Y ip, C E O of C DC C orp s aid, “Des pite the globa l economic downturn, three of our core bus ines s es a chieved a n impres s ive 34 percent increa s e, on a n a ggrega te ba s is , in Adjus ted E B IT DA from continuing opera tions in 2008 compa red to the prior yea r. C DC C orpora tion has inves ted cons idera ble time a nd effort to develop thes e va rious core bus ines s es a nd ea ch of them is a t a different s ta ge of ma turity. During 2008, C DC C orporation ha s improved s evera l of the key opera ting metrics in thes e bus ines s es a nd is now in the proces s of exploring s tra tegic a nd growth a lterna tives with res pect to a ll of them. W e believe tha t the exploration of s uch alterna tives for thes e bus ines s es could ultima tely unlock s ha reholder va lue in the compa ny, a s we feel our s ha res are currently underva lued in the ma rket. ” C DC C orp. reported una udited ea rnings res ults for the fourth qua rter a nd yea r ended December 31, 2008. F or the qua rter, the compa ny reported opera ting los s from continuing opera tions of $57, 881, 000, los s before income ta xes of $87, 836, 000 a nd los s from continuing opera tions of $84, 287, 000 or $0. 79 ba s ic a nd diluted per s ha re and net los s of $84, 015, 000 or $0. 78 bas ic a nd diluted per s ha re on tota l revenues of $96, 236, 000 a ga ins t opera ting los s from continuing opera tions of $8, 986, 000, los s before income ta xes of $24, 920, 000 a nd los s from continuing opera tions of $26, 188, 000 or $0. 24 ba s ic a nd diluted per s ha re a nd net los s of $93, 999, 000 or $0. 88 ba s ic a nd diluted per s ha re on tota l revenues of $106, 926, 000 for the s ame period a yea r ago. T he company a ls o reported net ca s h provided by opera ting activities $27, 106, 000. Adjus ted E B IT DA from continuing opera tions wa s $8. 0 million compa red to a djus ted E B IT DA of los s of $4. 5 million, res pectively, for the fourth qua rter of 2007. F or the yea r, the compa ny reported opera ting los s from continuing opera tions of $71, 424, 000, los s before income ta xes of $108, 079, 000 a nd los s from continuing opera tions of $108, 445, 000 or $1. 01 ba s ic a nd diluted per s ha re a nd net los s of $116, 300, 000 or $1. 08 ba s ic a nd diluted In the fourth quarter of 2008, the compa ny recorded a goodwill a nd intangible a s s et impa irment charge of $49. 0 million and a n impa irment cha VOIS , Inc . (OTC B B :VOIS ) DigitalFX International, Inc . (OTC B B : DGF X) DigitalF X Interna tional Inc. Appoints R icha rd B urnett to L ea d S a les and Ma rketing C DC C orp. (Nas daqGS : C HIN.A); C DC Games L imited; C DC G lobal S ervic es , Inc .; C DC S oftware C orporation C DC R eviews Alterna tives F or T hree B us ines s es C DC C orp. (Nas daqGS : C HIN.A) C DC C orp. R eports Una udited E a rnings R es ults for the F ourth Qua rter a nd Y ea r E nded December 31, 2008 L ookS mart, L td. (Nas daqG M:L OOK ) L ookS mart Announces Limited B eta T es t of S ma rtR ota tion, a C os t-per-a cquis ition Driven T ool LookS ma rt Ltd. a nnounced the limited beta tes t of S ma rtR ota tion, a cos t-per-a cquis ition (C P A) driven tool tha t us es a tra cking pixel to automa tica lly optimize ca mpa igns ba s ed on the bes t-converting a d crea tive. S ma rtR ota tion is pa rt of a la rger beta tes t of a d rota tion a nd is the lates t a ddition to LookS ma rt's AdC enter, a powerful a d s erving a nd keyword a uction pla tform tha t ena bles advertis ers to ma na ge return on inves tment (R OI) through increas ed ta rgeting a nd tra cking. L ookS ma rt's AdC enter proces s es more tha n a billion da ily queries for LookS ma rt's s yndica ted network a nd is us ed by thous a nds of a dvertis ers via s elf-s ervice accounts , dedica ted ma na ged s ervices a nd bid ma na gement through a dva nced AP I technology. T he AdC enter's ta rgeting a nd tra cking fea tures include geo-ta rgeting, a d s cheduling, a nd convers ion tra cking a nd reporting a nd tra ffic ma na gement fea tures like referrer white-a nd bla ck-lis ting a nd ca mpaign-level feed ca pping. S ma rtR ota tion is ava ila ble in limited beta tes ting to qualified cus tomers . Quepa s a C orp. , owner of Quepa s a . com, a nnounced a n exclus ive pa rtners hip with W orldV ibe E nterta inment G roup, L L C . Under the pa rtners hip Q uepas a . com will be the exclus ive online pa rtner for E s MiP la neta . com, the fa n s ite for 'B a ta lla de la s Americas , ' a mus ic-ba s ed rea lity s how tha t s pa ns more tha n twenty countries throughout the America s , including the U. S . T he firs t 2009 s eas on is a ta lent s ea rch for the ba nd 'X M2, ' in which three former members of the L atin s uper-group Menudo(T M), s ea rch for their final member. T he fully-interactive, vibra nt online community, which will be powered by Q uepa s a . com in three la ngua ges : E nglis h, S pa nis h, a nd P ortugues e, will fea ture online voting in which fa ns determine which contes ta nts move on a nd who goes home. P lus the genera l public will be invited to join the competition by s ubmitting a video a udition online a nd enter the contes t via the web. T he multimedia community will als o include exclus ive online performa nce highlights , behind the s cenes foota ge, contes ta nt profiles a nd photos , us er-genera ted content, and the a bility to uploa d photogra phs a nd videos . NetDra gon W ebS oft, Inc. (S E HK : 777) wa s granted s ha reholders a pprova l in the Annua l G eneral Meeting held on J une 12, 2008. Under the program the compa ny intends to repurcha s e up to 10% of the is s ued s ha re ca pita l. T he s ha re capita l would be repurcha s ed in the s tock excha nge. T he s ha re a uthority will expire ea rlies t of the conclus ion of the next Annua l G enera l Meeting or by the revoca tion or va riation of this res olution by a n ordina ry res olution of the s ha reholders of the C ompa ny in genera l meeting. As of S eptember 30, 2008, the C ompa ny ha s repurcha s ed 9, 370, 500 s ha res for a HK D 46. 90 million (C NY 41. 38 million). T he convers ion wa s ma de through www. oa nda . com on S eptember 30, 2008. NetDra gon W ebS oft, Inc’s s hare repurcha s e program expired on April 21, 2009. NetDra gon W ebS oft, Inc. (S E HK : 777) wa s granted s ha reholders a pprova l to repurcha s e s hares in the Annua l G eneral Meeting held on April 21, 2009. Under the progra m, the compa ny intends to repurcha s e up to 52, 857, 086 s ha res repres enting 10% of the is s ued s ha re capita l of the compa ny. T he Directors believe tha t it is in the interes ts of the C ompa ny a nd the S ha reholders to ha ve a genera l a uthority from the S hareholders to ena ble the Directors to repurcha s e S ha res on G E M. S uch repurcha s es ma y, depending on ma rket conditions a nd funding arra ngements a t the time, lead to a n enha ncement of the net a s s ets of the C ompa ny a nd/or its ea rnings per S hare a nd will only be ma de when the Directors believe tha t s uch purcha s es will benefit the C ompa ny a nd the S ha reholders . T he program is valid until the ea rlies t of the conclus ion of the next a nnua l genera l meeting of the C ompa ny or the expira tion of the period within which the next a nnua l general meeting of the C ompa ny is required by the Articles , or a ny applicable la w of the C a yma n Is la nds to be held or the R epurchas e Ma nda te being revoked or va ried by a n ordina ry res olution of the S ha reholders in genera l meeting prior to the next a nnua l genera l meeting. Quepas a C orp. (Nas daqC M: QP S A) Q uepa s a . com a nd W orldV ibe E nterta inment Announce E xclus ive P a rtners hip NetDragon W ebS oft, Inc . (S E HK : 777) NetDra gon W ebS oft, Inc. 's E quity B uyba ck has expired NetDragon W ebS oft, Inc . (S E HK : 777) NetDra gon W ebS oft, Inc. a nnounces a n E quity B uyback B eyond C ommerce, Inc. (OTC B B : B YOC ) B eyond C ommerce Inc. R eports R evenue R es ults for the B eyond C ommerce Inc. revenue res ults for the month of F ebrua ry 2009. T he compa ny reported $3. 3 million in revenues for the month of F ebrua ry 2009, $2. 3 million for the month of J a nua ry 2009 a nd $1. 07 million for the month of December 2008. Month of F ebrua ry 2009 ; P rovides R evenue G uida nce for the Months of April a nd Ma y 2009 T he company is on tra ck for continued s trong growth in revenue in the months of April a nd Ma y 2009. On April 20, 2009, J a mes S . Dixon res igned a s C hief E xecutive Officer, P res ident, S ecreta ry a nd T rea s urer of S ites ea rch C orpora tion. As a co-founder a nd inves tor in S ites ea rch C orpora tion, Mr. Dixon will rema in a Director of the C ompany. T he B oa rd of Directors a ppointed J effrey S . P eters on, to s erve a s the C hief E xecutive O fficer, S ecreta ry a nd T rea s urer. Mr. P eters on will s erve in thes e pos itions a nd a ls o continue to s erve a s the cha irma n of the B oa rd. T he company a ls o announced the res igna tion of B a mbi F ra ncis co a s a Director at her reques t. Ms . F ra ncis co ha s s erved a s a n outs ide Director for the C ompa ny s ince April, 2008. S ites earc h C orporation (OTC B B : S TP C ) S ites ea rch C orpora tion Announces E xecutive C ha nges
Slide 9: Page 9 E lectronic Arts Inc . (Nas daqG S : E R TS ); T he9 Limited - S pecia l/M&A C all The9 L imited (Nas daqGS : NC TY) K ings oft C o. L td. (S E HK : 3888) K ings oft C o. Ltd Mulls a n E quity B uyback T o dis cus s the highly anticipa ted game E A S P O R T S (T M) F IF A O NLINE 2 will begin its open beta tes t in mainla nd C hina K ings oft C o. L td will s eek s ha reholder a pproval to repurchas e own s hares at the Annua l G eneral Meeting to be held on Ma y 25, 2009. Under the propos ed buyback, the compa ny intends to repurcha s e up to 107,720, 033 s hares . R epurcha s es s ha ll be made on the s tock excha nge. MOK O. mobi L imited has s igned a n a greement with B oos t Mobile Aus tra lia that includes a revenue s ha re on daily and monthly s ubs cription cha rges , MMS , priva te media mes s aging and advertis ing. MOK O. mobi is now a vaila ble a cros s a ll mobile networks in Aus tra lia. NetDragon W ebS oft, Inc. announced tha t T he W arlords , the E nglis h vers ion of T ou Ming Zhua ng O nline, entered its open beta tes ting on April 24. T he W arlords is a 2. 5 D MMO R P G ga me jointly crea ted by NetDragon a nd C hina F ilm G roup, s haring the s ame s tory as the film titled T he W arlords . It exhibits traditiona l C hines e ma rtial arts through complica ted s tories s et in the la te Qing Dyna s ty. B eyond C ommerce, Inc. announced the official launch of LocalAdL ink. com, a low cos t provider of online a dvertis ing for loca l bus ines s es a cros s the nation. L ocalAdLink is a provider of s ervices that ena ble local bus ines s es to reach loca l cus tomers with targeted Internet a dvertis ing. T he cus tomer fa cing W eb s ite, L oca lAdLink. com, is a loca l s earch directory and acts as the central hub for the L oca lAdL ink technology. W hen a cus tomer vis its L ocalAdLink. com, proprietary geo-ta rgeting s oftwa re identifies the cus tomer's loca tion a nd dis plays relevant loca l bus ines s lis tings . In a ddition, L oca lAdLink has created an Advertis ing Network tha t publis hes loca l bus ines s lis tings on its owned a nd operated s ites , as well as partner s ites . MOK O.mobi L imited (AS X: MK B ) MOK O .mobi S igns Dea l with B oos t Mobile NetDragon WebS oft, Inc. (S E HK : 777) NetDragon La unches Open B eta T es ting for T he W a rlords in North America B eyond C ommerc e, Inc. (OTC B B : B YOC ) B eyond C ommerce, Inc. Announces the L aunch of Loca lAdlink Figure 7. Key Developments Source. Capital IQ
Slide 10: Page 10 VALUATION MMOG companies lead market-cap charts: Nine companies in our Web 2.0 universe top US$1 billion in market capitalization (Figure 8). Sixty-four of the 92 companies have market caps under US$100 million, with 28 under $10 million. Online gaming companies dominate the top of the list. Market C ap (US D m) Tenc ent Holdings Ltd. Neteas e.c om Inc . S handa Interac tive Entertainment Ltd. IA C/InterA c tiveCorp. S ohu.c om Inc . Giant Interac tive G roup, Inc . Open Tex t Corp. Modern Times G roup Mtg A B G ree, Inc . Perfec t World Co., Ltd. V alueClic k Inc . Mix i, Inc . Chines e G amer International K ings oft Co. Ltd. NEOWIZ G ames Corporation United Online Inc . G igaMedia Ltd. NetDragon WebS oft, Inc . S K Communic ations Co., Ltd. S hutterfly , Inc . The9 Limited X ING A G G ungHo Online Entertainment, Inc . Gamania Digital Entertainment Co., Ltd. CDC Corp. DA DA S pA Y edangOnline Corp. OA O R B C Information S y s tems Openw ave S y s tems Inc . A c toz S oft Co., Ltd. GameOn Co Ltd. Moggle, Inc HanbitS oft, Inc . TheS treet.c om, Inc . K aboos e Inc . DigitalTow n, Inc . B ey ond Commerc e, Inc . Tree.Com, Inc . Cy berplex Inc . J umpTV Inc . GeoS entric Oy j S park Netw orks , Inc . Ngi G roup Inc . PhotoChannel Netw orks Inc . NeXplore Corporation Eolith Co. Ltd. B roadWebA s ia Inc . Webz en Inc . Northgate Tec hnologies Limited S ites earc h Corporation Frogs ter Interac tive Pic tures A G A Q Interac tive, Inc . Dolphin Digital Media, Inc . Wiz z ard S of tw are Corporation G ravity Co., Ltd LookS mart, Ltd. DX N Holdings B hd IdeaEdge, Inc . IA S Energy , Inc . J umbuc k Entertainment Pty Ltd. Fluid Mus ic Canada, Inc . Extens ions , Inc . A c c eleriz e New Media, Inc . Quepas a Corp. S pec trumDNA , Inc . Lingo Media Corporation W orlds .c om Inc . Y nk K orea Inc . S NA P Interac tive, Inc . Magnitude Information S y s tems Inc . CornerWorld Corporation UOMO Media, Inc B right Things plc MOK O.mobi Limited is eemedia Inc . B etaw ave Corporation LiveWorld Inc . Wooz y Fly , Inc . V OIS , Inc . W ynds torm Corporation DigitalPos t Interac tive, Inc . Unis erve Communic ations Corp. B igs tring Corp. Z ipLoc al Inc . Financ ial Media G roup, Inc . The Parent Company Total S port Online A S A s s oc iated Media Holdings Inc . China Gatew ay Corporation S NM G lobal Holdings Dibz International, Inc . S oc ial Media V enures , Inc . 0 2243.9 3281.8 3722.3 885.3 840.6 757.4 540.7 515.9 418.5 390.2 364.7 313.1 306.4 255.1 247.0 199.0 162.7 144.4 126.3 123.7 112.7 105.7 99.1 93.2 90.9 83.5 77.9 71.9 67.4 63.6 61.6 58.3 53.8 51.0 46.7 46.3 45.8 43.3 41.8 40.7 38.2 33.0 31.9 28.2 27.8 26.2 26.1 25.9 25.0 23.1 20.2 18.8 17.5 16.4 15.0 14.2 13.4 11.1 9.7 9.5 8.9 8.6 7.0 6.5 6.4 5.1 5.0 4.4 4.2 3.2 3.1 2.6 2.5 1.6 1.3 0.8 0.7 0.3 0.3 0.3 0.1 0.1 0.0 0.0 0.0 0.0 500 1,000 1288.0 1926.0 1921.0 1740.7 1668.7 1,500 2,000 2,500 3,000 3,500 4,000 Figure 8. Market Cap Ranking Source. Capital IQ TEV/Revenue (LTM) averages 4.2x: The overall average TEV/Revenue (LTM) multiple for our group is 4.2x – same as last week (Figure 9). However, this is skewed by Gree (3633-TSE) at 40.8x and Beyond Commerce Inc. (BYOC-OTCBB) at 35.5x. The median is only 1.5x. Note that we exclude multiples greater than 50x. Thirty-one companies have multiples under 1.5x.
Slide 11: 15. 0 20. 0 25. 0 30. 0 35. 0 40. 0 45. 0 10. 0 Figure 9. TEV/Revenue Ranking Source. Capital IQ # Companies (x) 5.0 10.0 15.0 20.0 25.0 0.0 20.6 15.9 13.0 6.8 6.0 5.6 1 AIM 2 AMEX TSXV NasdaqGS 5 13 22 1 OTCBB KLSE 2 GTSM 1 OM 9 Figures 10 & 11. TEV/Revenue Ranking (Exchange, Country) Source. Capital IQ OTCPK Average TEV/LTM Revenue - By Exchange 4.0 3.3 3.0 2.1 2.0 1.8 1.5 1.5 0.8 0.6 0.5 0.3 10.6 8.1 8.6 6. 9 5.6 6.0 4.64.7 5.25.4 A verage, 4.2 3.7 3.84.3 5. 0 2.62.63.03.1 3.13. 3 1.92.02.12.22.22.4 0.90. 91.01.11.11.11.11.11.21.21.4 1. 51.8 0.00.00.00.10.10.10.20. 20.20.30.3 0.40.40.50.60.60.80.80.8 0. 0 TEV/Revenue (LTM) by country/exchange: W e have also calculated multiples based on where the companies are listed or domiciled. Figure 10 shows the average TEV/Revenue multiples by stock exchange. The OTCBB has the largest number of companies (22), trading at an average multiple of 6.0x (up from 5.8x last week). On a geographic basis, the United States has the most companies (41), trading at an average of 4.8x revenue (slightly up from 4.7x last week) (Figure 11). Eleven of the companies are Canadian (average 7.7x revenue). 4 0.2 0.1 (x) 10.0 15.0 20.0 25.0 0.0 5.0 20.6 16.3 7.7 5.6 4.8 3.3 1.9 1.5 1.5 TSX 5 NasdaqGM 5 TSE 2 ASX 1 HLSE 1 RTS 7 KOSE 2 XTRA T E V/L T M R evenue (x) 1 OSE 3 SEHK 1 NasdaqCM # Companies 1 United Kingdom Average TEV/LTM Revenue - By Country 3 1.3 0.8 0.8 0.5 0.4 0.1 Taiwan 11 Canada 1 Malaysia 41 United States 1 Sweden 9 China 2 Australia 1 Finland 6 Japan 1 Russia 9 South Korea 2 Germany 15.9 1 Hong Kong 20.6 23.6 Page 11 1 Norway 35. 5 TEV/EBITDA (LTM) averages 9.0x: The average multiple for the 30 companies with positive EBITDA (and multiples under 100x) is 9.0x LTM EBITDA (from 8.7x last week), led by Tencent Holdings Ltd.’s (700-SEHK) 32.5x multiple (Figure 12). Sixteen of the companies have EBITDA multiples under 7x. The median multiple is 7.6x (vs. 7.1x last week). S ocial Media V enures , Inc . O AO R B C Information S y s tems F luid Mus ic C a nada , Inc. O penwave S y s tems Inc . U nis erve C ommunications C orp. S handa Interac tive E ntertainment L iveWorld Inc . T he P a rent C ompany N orthgate T echnologies L imited T ree.C om, Inc. IAC /InterAc tiveC orp. C DC C orp. G a meO n C o Ltd. DXN Holdings B hd ZipLoca l Inc . Y nk K orea Inc . DADA S pA S hutterfly , Inc . S pa rk N etwork s , Inc . J umbuck E nterta inment P ty Ltd. Ac toz S oft C o. , Ltd. United O nline Inc . S N M G loba l Holdings K aboos e Inc . C y berplex Inc . G a mania Digital E ntertainment C o., V alueC lic k Inc . H anbitS oft, Inc . G ungHo O nline E ntertainment, Inc. Modern T imes G roup Mtg AB G igaMedia Ltd. S NAP Intera ctive, Inc . NetDra gon WebS oft, Inc . S K C ommunica tions C o., Ltd. is eemedia Inc . E olith C o. Ltd. Y edangO nline C orp. O pen T ex t C orp. P hotoC hannel Network s Inc . J umpT V Inc . NE O WIZ G ames C orporation Lingo Media C orporation XIN G AG MO K O .mobi L imited K ings oft C o. Ltd. S ohu.com Inc . Wiz z ard S oftware C orporation T otal S port O nline AS Acceleriz e New Media , Inc . F rogs ter Intera ctiv e P ic tures AG Mix i, Inc . DigitalP os t Intera ctive, Inc. C ornerWorld C orporation G eoS entric O y j As s ociated Media Holdings Inc . UO MO Media, Inc C hines e G amer Interna tional T encent Holdings Ltd. B right T hings plc B igs tring C orp. B ey ond C ommerc e, Inc. G ree, Inc . 40.8
Slide 12: Page 12 T E V/L T M E B IT DA (x) 35. 0 30. 0 25. 0 21. 0 21. 1 20. 0 15. 0 10. 0 5. 0 0. 2 OAO R BC Information Sys tems 0. 0 0. 3 Shanda Interactive Entertainment Ltd. 1.3 Northgate Technologies Limited 1. 7 G ameOn Co Ltd. A v era ge, 9.0 4. 2 4. 5 4. 7 4.7 5. 8 5. 9 6. 3 6. 3 6. 9 7. 6 7. 8 8. 5 9. 0 9. 5 9. 6 9. 7 9. 8 9. 8 11. 2 11. 3 13. 3 14. 3 29.5 32. 5 2. 5 3. 8 3. 9 G ungHo Online Entertainment, Inc. G amania Digital Entertainment Co., Ltd. J umbuck Entertainment Pty Ltd. NEOWIZ G ames Corporation Chines e G amer International Unis erve Communications Corp. DXN Holdings Bhd Modern Times G roup Mtg AB SK Communications Co., Ltd. United Online Inc. SNAP Interactive, Inc. Open Text Corp. CDC Corp. XING AG Mixi, Inc. NetDragon WebSoft, Inc. 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 (22), trading at an average multiple of 7.8x. On a geographic basis, the United States has the most companies (41), trading at an average of 8.6x EBITDA (Figure 14). Eleven of the companies are Canadian (average 11.5x EBITDA). Average TEV/LTM EBITDA - By Exchange 35.0 32.5 30.0 25.0 (x) 20.0 15.0 10.0 5.0 OTCNO OTCBB NasdaqGM GTSM 0.0 AMEX OSE NasdaqGS TSE TSX TSXV ASX 16.3 13.3 (x) 35.0 30.0 Average TEV/LTM EBITDA - By Country 29.5 29.5 25.0 20.0 15.0 10.0 5.0 13.3 12.4 11.5 9.7 8.6 8.6 7.7 6.3 5.9 0.0 Canada Hong Kong United States China Japan Finland Russia Taiwan Australia Norway South Korea 3.9 1.7 Germany 2 0.0 India 1 9.6 9.3 8.6 7.8 7.7 7.6 7.1 6.3 5.9 5.2 2.4 OTCPK RTS KOSE HLSE 1.7 0.3 NasdaqCM XTRA # Companies 2 1 5 2 5 13 5 22 2 1 4 1 1 9 7 2 1 # Companies 1 3 9 11 1 6 41 2 Tencent Holdings Ltd. Sohu.com Inc. Spark Networks , Inc. G igaMedia Ltd. ValueClick Inc. IAC/InterActiveCorp. YedangOnline Corp. Actoz Soft Co., Ltd. Kings oft Co. Ltd. Shutterfly, Inc. Cyberplex Inc. Kaboos e Inc. DADA SpA 1 1 9 Figures 13 & 14. TEV/EBITDA Ranking (Exchange, Country) Source. Capital IQ P/E (LTM) averages 16.4x: The average multiple for the 32 companies with positive earnings (and multiples under 100x) is 16.4x LTM EPS (from 15.9x last week), led by TheStreet.com’s (TSCM-NASDAQ) 75.7x multiple (Figure 15). Thirteen of the companies have P/E multiples under 10x. The median is just 11.4x.
Slide 13: Page 13 P /E L T M (x) 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.7 0.0 T he9 Limited P erfect W orld C o. , Ltd. 1.5 1. 9 G ia nt Interactive G roup, Inc . 2.1 Northgate T echnologies Limited 2.5 Netea s e.com Inc. 2.7 S handa Interactive E ntertainment L td. A verage, 16.4 4.9 7.4 7.4 9. 2 15.6 16.7 18.8 21.2 28.2 23.0 35.6 36.2 57.3 75.7 43.6 12.9 13.4 13. 4 11.1 11.3 11.6 12.5 9.2 10.3 3.3 Worlds .c om Inc. 3.9 DXN Holdings B hd G a mania Digita l E ntertainment C o., L td. J umbuc k E ntertainment P ty L td. NE O WIZ G ames C orporation Modern T imes G roup Mtg AB C hines e G amer International G ameO n C o Ltd. S NAP Intera ctiv e, Inc. IAC /InterActiveC orp. NetDragon WebS oft, Inc. S pa rk Network s , Inc. T enc ent Holdings Ltd. Y eda ngO nline C orp. 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 (22), trading at an average multiple of 12.8x. On a geographic basis, the United States has the most companies (41), trading at an average of 18.7x earnings (Figure 17). Eleven of the companies are Canadian (average 23.6x EPS). Average P/E - By Exchange 80.0 70.0 60.0 50.0 (x) 40.0 30.0 20.0 10.0 OTCPK NasdaqGM 0.0 RTS TSXV TSE OSE AMEX 57.3 36.2 23.4 (x) Ac toz S oft C o., L td. 75.7 70.0 60.0 50.0 57.3 Average P/E - By Country 30.1 18.7 16.7 12.8 12.1 11.6 11.3 10.3 9.2 OTCBB GTSM HLSE XTRA TSX ASX 8.8 NasdaqGS 40.0 30.0 20.0 10.0 0.0 Germany United States Japan Canada Finland Russia China Taiwan Australia South Korea 9 Norway 1 23.6 18.7 18.1 11.6 11.3 10.3 9.2 8.4 T heS treet.com, Inc. O pen T ex t C orp. Ngi G roup Inc. XING AG G igaMedia Ltd. C y berplex Inc. S ohu. com Inc. K ings oft C o. Ltd. Mix i, Inc. S hutterfly , Inc. DADA S pA 6.0 0.0 # Companies 5 1 5 9 2 5 1 22 4 1 2 2 2 13 # Companies 1 11 41 6 1 3 2 2 9 Figures 16 & 17. P/E Ranking (Exchange, Country) Source. Capital IQ
Slide 14: Page 14 UPCOMING EVENTS E arnings C alendar C ompany S hutterfly, Inc. (Nas daqG S : S F L Y ) IAC /InterActiveC orp. (Nas daqG S : IAC I) O penwave S ys tems Inc. (Nas daqG S : O P W V ) T ree. C om, Inc. (Nas daqG M: T R E E ) L ookS mart, L td. (Nas daqG M: L O O K ) V alueC lick Inc. (Nas daqG S : V C L K ) United O nline Inc. (Nas daqG S : UNT D) O pen T ext C orp. (Nas daqG S : O T E X) Figure 18. Earnings Calendar Source. Company reports Date & Time W ednes day, April 29, 2009 5: 00 P M (E DT ) W ednes day, April 29, 2009 11: 00 AM (E DT ) W ednes day, April 29, 2009 2: 00 P M (P DT ) F riday, May 01, 2009 11: 00 AM (E DT ) Monday, May 04, 2009 5: 00:00 P M (E DT ) T ues day, May 05, 2009 4: 30 P M (E DT ) T ues day, May 05, 2009 2: 00 P M (P DT ) W ednes day, May 06, 2009 5: 00: 00 P M (E DT ) Quarter Q 1 2009 Q 1 2009 Q 3 2009 Q 1 2009 Q 1 2009 Q 1 2009 Q 1 2009 Q 3 2009 C onf C all Details 877-591-4956 NA 800-289-0508 877-407-0782 800-762-8779 818-575-4677 877-681-3374 800-733-7571
Slide 15: Page 15 C omparable C ompany Analys is > W eb 2 .0 P ric e P erformanc e C ompa ny Na me Acce le riz e N ew Me dia, Inc. Actoz S of t C o., L td. AQ Inte ractive , Inc. As s ocia ted Media H oldings Inc. B igstring Corp. B e tawave Corpora tion B e yond Commerce, Inc. B right T hings plc B roa dW ebAs ia Inc. C DC C orp. C hina G ate wa y C orpora tion C hine s e G amer International C ornerW orld C orporation C yberplex Inc. D ADA S pA D XN Holdings B hd D ibz Inte rnational, Inc. D igitalP ost Inte ra ctive , Inc. D igitalT own, Inc. D olphin Digital Me dia, Inc. E olith C o. L td. E xte ns ions , Inc. F inancia l Media G roup, Inc. F luid M us ic Ca nada, Inc. F rogs te r Interactive P icture s AG G a ma nia Digital E ntertainment C o., L td. G a me On C o L td. G e oS e ntric O yj G iant Intera ctive G roup, Inc. G iga Media Ltd. G ravity C o., L td G ree, Inc. G ungH o O nline E ntertainment, Inc. H anbitS oft, Inc. IAC /InterActiveC orp. IAS E nergy, Inc. IdeaE dge, Inc. is ee media Inc. J umbuck E ntertainment P ty Ltd. J umpT V Inc. K a boos e Inc. K ings oft Co. Ltd. Lingo Media Corporation Live World Inc. LookS mart, Ltd. M agnitude Information S ys tems Inc. M ixi, Inc. M ode rn Times G roup Mtg AB M oggle , Inc M OK O.mobi L imited N E OW IZ G ames C orpora tion N etDragon W ebS oft, Inc. N ete as e.com I nc. N eXplore Corpora tion N gi G roup Inc. N orthgate Te chnologies L imited Open T e xt Corp. Openwave S ys tems Inc. P e rfect W orld C o., Ltd. P hotoChannel N etwork s Inc. Quepa s a C orp. OA O R B C Information S ys tems S handa Interactive E ntertainme nt L td. S hutte rf ly, Inc. S K C ommunications Co., Ltd. S N AP Inte ra ctive , Inc. S N M G lobal H oldings S ocia l Media V e nures , Inc. S ohu. com Inc. S ite s earch C orporation S park N etworks , Inc. S pectrumDN A, Inc. T encent Holdings L td. T he P arent C ompany T he 9 L imited T he S treet.com, Inc. T otal S port Online A S T ree.C om, Inc. U nis erve C ommunications Corp. U nited Online Inc. U OMO Media , Inc V a lueC lick Inc. V O IS , Inc. W ebze n Inc. W iz za rd S of twa re Corpora tion W oozyF ly, Inc. W orlds .com Inc. W ynds torm C orporation XIN G AG Y e dangOnline Corp. Y nk K orea Inc. ZipLocal Inc. H igh Low A vera ge M edian C ur rency US D KR W JPY US D US D US D US D GBP US D US D US D TWD US D C AD E UR MY R US D US D US D US D KR W US D US D C AD E UR TWD JPY E UR US D US D US D JPY JPY KR W US D US D US D C AD AU D C AD C AD HKD C AD US D US D US D JPY SE K US D AU D KR W HKD US D US D JPY IN R US D US D US D C AD US D US D US D US D KR W US D US D US D US D US D US D US D HKD US D US D US D N OK US D C AD US D US D US D US D US D US D US D US D US D E UR KR W KR W C AD T ic ker A CL Z A 052 790 3 838 A S MH B S GC B W AV B Y OC A IM:B G T B W BA C H IN .A CGWY G TS M:3 083 CWR L T S X:CX C M :DA DXN DIB Z DG L P DG T W DP DM A 041 060 E XT I F NGP T S X:F MN FR G 6 180 3 812 G E O1V GA G IG M G RV Y T S E :36 32 3 765 A 047 080 I ACI I AS C .A O TC B B :ID AE IEE A S X:J M B T S X:J T V T S X:K AB 3 888 T S XV :LM L VW D L OOK M AG Y 2 121 MT G B M MOG MKB A 095 660 7 77 NT E S N XP C 2 497 5 900 57 O TE X O PW V P W RD T S XV :P N Q PSA R BC I S NDA S F LY A 066 270 S T VI S NM N S MVI S OH U S TPC L OV S P XA 7 00 K IDS .Q NC TY T S CM T OS O TR EE T S XV :U S S UNTD U OMO V CL K V OIS W ZE N W ZE W ZY F W DDD W YND O 1B C A 052 770 A 023 770 T S XV :ZIP E x change OT C B B KO SE TSE OT C P K OT C B B OT C B B OT C B B AI M OT C P K N as da qG S OT C B B GT S M OT C B B TSX CM KL SE OT C P K OT C B B OT C B B OT C B B KO SE OT C P K OT C B B TSX XT R A GT S M TSE H LS E NYS E N as da qG S N as da qG M TSE OS E KO SE N as da qG S OT C B B OT C B B T S XV AS X TSX TSX S E HK T S XV OT C P K N as da qG M OT C B B TSE OM OT C B B AS X KO SE S E HK N as da qG S OT C P K TSE BS E N as da qG S N as da qG S N as da qG S T S XV N as da qC M R TS N as da qG S N as da qG S KO SE OT C B B OT C P K OT C P K N as da qG S OT C B B AM E X OT C B B S E HK OT C P K N as da qG S N as da qG M OT C N O N as da qG M T S XV N as da qG S OT C B B N as da qG S OT C B B N as da qG M AM E X OT C B B OT C B B OT C B B XT R A KO SE KO SE T S XV U S D Ma rket C ap ($m) 1 3.4 9 3.2 2 6.2 0 .1 0 .7 3 .2 6 1.6 5 .0 3 8.2 12 6.3 0 .0 54 0.7 6 .4 5 3.8 12 3.7 2 0.2 0 .0 1 .3 6 3.6 2 6.1 4 0.7 1 4.2 0 .3 1 5.0 2 7.8 14 4.4 9 0.9 4 6.7 1,9 21. 0 36 4.7 2 5.0 1,2 88. 0 16 2.7 7 7.9 2,2 43. 9 1 7.5 1 8.8 4 .2 1 6.4 5 1.0 6 7.4 51 5.9 9 .5 3 .1 2 3.1 6 .5 75 7.4 1,6 68. 7 8 3.5 4 .4 41 8.5 31 3.1 3,7 22. 3 4 1.8 4 5.8 3 1.9 1,7 40. 7 9 9.1 88 5.3 4 3.3 1 1.1 10 5.7 3,2 81. 8 25 5.1 30 6.4 7 .0 0 .0 0 .0 1,9 26. 0 2 8.2 4 6.3 9 .7 15, 325 .4 0 .3 24 7.0 7 1.9 0 .1 5 8.3 0 .8 39 0.2 5 .1 84 0.6 2 .5 3 3.0 2 5.9 2 .6 8 .9 1 .6 19 9.0 11 2.7 8 .6 0 .3 C urrent Pric e 0.4 9 1 4,70 0.0 0 4 7,10 0.0 0 0.0 0 0.0 1 0.1 1 1.4 9 0.0 2 0.4 5 1.1 8 0.0 0 21 5.0 0 0.1 0 1.2 3 5.8 5 0.3 2 0.0 0 0.0 2 2.3 5 0.5 3 76 0.0 0 0.1 5 0.0 0 0.3 5 9.0 6 3 2.1 5 9 2,00 0.0 0 0.0 4 8.5 0 6.7 5 0.9 0 5,65 0.0 0 13 9,00 0.0 0 4,77 0.0 0 1 5.9 2 0.2 5 0.4 4 0.1 0 0.4 7 0.5 5 0.5 9 3.7 2 0.9 0 0.1 0 1.3 6 0.0 2 48 3,00 0.0 0 21 2.0 0 2.3 0 0.0 7 5 8,40 0.0 0 4.5 9 3 0.2 5 0.7 5 3 6,30 0.0 0 4 5.7 0 3 3.5 4 1.1 9 1 6.7 8 1.5 5 0.8 7 0.7 6 4 7.3 0 1 0.1 4 1 0,00 0.0 0 0.6 5 0.0 1 0.1 5 5 0.5 3 3.5 0 2.2 5 0.2 0 6 5.9 5 0.0 1 9.2 1 2.3 5 0.0 3 5.8 4 0.0 4 4.7 5 0.0 6 9.6 9 0.3 0 2.7 8 0.5 5 0.1 5 0.1 7 0.0 9 2 9.7 7 9,67 0.0 0 4,70 0.0 0 0.0 1 1 Wk 53.1 % 0.0 % 0.2 % 0.0 % 1.4 % -21. 4% -0.7 % 0.0 % 0.0 % -15. 7% 1 00. 0% 14.7 % -16. 7% 2.5 % 17.3 % 1.6 % -90. 0% 20.0 % -21. 7% -1.9 % 21.6 % -25. 0% -27. 3% 0.0 % 8.5 % 0.8 % -0.2 % 0.0 % 11.8 % -1.0 % -8.2 % 3.7 % 13.7 % 14.7 % -1.7 % 2.0 % 46.7 % -16. 7% -7.0 % 0.0 % 1.7 % 4.5 % -18. 2% 0.0 % 19.9 % 0.0 % 28.1 % 27.7 % 15.0 % -12. 9% 5.0 % 0.4 % 4.6 % 7.1 % 32.0 % 6.3 % -4.5 % -1.7 % 5.3 % -5.5 % 20.8 % 52.4 % 6.4 % -3.5 % 10.0 % -7.1 % 1 40. 0% -83. 0% 8.8 % -30. 0% -4.3 % -4.8 % 0.2 % -14. 3% -4.0 % 4.0 % -25. 0% 2.8 % -20. 0% -0.2 % -25. 0% 4.4 % 30.4 % 5.7 % -3.5 % 0.0 % 0.0 % -47. 1% 10.3 % 1.7 % 5.9 % 0.0 % 1 40. 0% -90. 0% 2.5% 0.1 % 1 Mth 1 13.0 % 3 3.0 % 4 1.2 % 7.1% -6.7 % -26. 7% 1 92.2 % 4.2% -11. 8% 3.5% 1 00.0 % 1 3.8 % -28. 6% 3 9.8 % 2 3.9 % 1 2.5 % -90. 0% 0.0% -6.0 % -7.0 % 4 3.4 % -25. 0% -55. 6% -12. 5% 3 9.4 % -4.9 % -2.3 % 3 3.3 % 2 3.0 % 8.7% 4 0.6 % 1 1.2 % 1 6.4 % 4 3.2 % 3.5% 4 55.6 % 1 0.0 % 1 1.1 % -7.0 % 1 2.2 % 5 1.3 % 2 4.0 % 5.9% -23. 1% 3 2.8 % 0.0% 2 7.1 % 5 4.2 % 1 5.0 % -18. 7% 4 0.0 % 9.5% 2 3.0 % 2 5.0 % 5 1.9 % 4 0.2 % -3.0 % 3 6.8 % 1 8.3 % 0.0% -20. 2% 7 3.2 % 2 8.6 % 9.5% 2 3.2 % -18. 8% 5 00.0 % -87. 5% 2 1.1 % NM -1.7 % 5.3% 1 9.5 % -20. 0% -33. 4% 1 5.2 % -25. 0% 2 8.4 % -20. 0% 3.3% -25. 0% 1 9.9 % -25. 0% 5 0.3 % 2 5.0 % 0.0% 3.0% -25. 0% 5.6% 1 1.4 % 2 2.2 % -66. 7% 5 00.0 % -90. 0% 21.5% 1 1.1 % 3 Mth 40 .0% 38 .7% 63 .5% -7 0.0% -1 7.6% -3 8.9% 60 .2% 34 .6% -5 5.4% 40 .5% 0 .0% 13 8.1% -7 5.6% 21 5.4% -9 .1% -1 1.3% -9 0.0% -1 4.3% -2 1.7% -1 8.5% 47 .6% 18 5.7% -7 3.3% 12 .9% 83 .0% 49 .2% -2 4.7% 0 .0% 40 .3% 2 .9% 5 .9% -1 .7% 41 .1% 55 .1% 6 .0% 109 0.5 % -2 4.1% 11 .1% -3 .1% 57 .1% 55 .3% 39 .8% -8 .2% 23 3.3% 1 .1% -4 4.0% -5 .7% 55 .6% 53 .3% 85 .0% 15 3.9% 73 .2% 65 .5% -6 .3% -2 5.3% 7 .5% 5 .9% 95 .1% 13 .5% -8 .8% -4 9.7% 14 7.8% 68 .6% 62 .5% 41 .8% -3 4.3% 190 0.0 % -8 5.6% 32 .8% NM -9 .3% 10 0.0% 49 .0% -7 6.0% -4 2.6% -1 9.0% -2 5.0% 31 .5% 0 .0% -2 3.9% -2 5.0% 56 .0% -2 5.0% 89 .1% -2 3.6% NM 6 .3% -2 5.0% -4 .0% 36 .4% 19 .0% -7 5.0% 190 0.0 % -9 0.0% 52.3% 6 .1% 6 Mth -2.0% 83 .5% 25 .1% -8 1.3 % -3 0.0 % 0 .0% -2 5.5 % 20 .7% -2 5.0 % -3.7% -8 6.7 % 18 8.6% -5 0.0 % 17 3.3% -1 8.8 % -4.5% -9 8.0 % -6 4.0 % -6.0% -4 7.0 % 83 .1% 50 .0% -9 8.9 % 0 .0% 16 2.6% 14 7.3% 31 .6% 0 .0% 32 .2% 17 .0% 12 .5% NM 36 .8% 74 .1% -5.9% 21 2.5% -7 6.8 % 66 .7% 9 .4% -1 5.4 % 13 .5% 86 .0% -3 0.8 % -2 3.1 % -2 0.3 % 15 .4% -2 0.7 % 37 .2% NM 54 .2% 38 6.7% 58 .8% 47 .0% 15 .4% -5 2.1 % -4 3.6 % 35 .5% 65 .3% -4.1% -1 6.2 % -5 6.3 % -4 9.2 % 84 .8% 50 .9% 11 5.1% 27 .5% -9 5.0 % -8 5.1 % -4.7% NM -2 6.2 % -2 0.0 % 50 .1% -9 8.6 % -2 9.4 % -3 9.4 % -4 0.0 % 15 9.6% -5 0.0 % -3 4.1 % -6 2.5 % 50 .2% -6 0.0 % 20 5.5% -4 2.7 % NM -5.6% -5 5.0 % 10 .3% 56 .0% -3 8.0 % -5 0.0 % 38 6.7% -9 8.9 % 13.2% -3.9% 1 Yr -31 .9% 82.6 % -78 .6% 36.4 % -93 .2% -70 .3% -36 .6% -50 .0% -80 .0% -66 .1% -96 .7% 1 00. 9% -80 .4% 61.8 % -60 .2% -43 .8% -98 .0% -90 .5% -23 .0% NM -23 .6% 0.0 % -98 .0% NM 1 08. 3% -1. 4% -17 .1% -42 .9% -45 .8% -57 .9% -42 .3% NM -52 .6% 3.7 % -63 .0% 16.3 % -31 .3% -64 .9% -20 .5% -28 .6% -51 .2% 10.4 % -52 .6% -58 .3% -71 .2% -14 .3% -40 .1% -52 .2% NM 80.5 % 74.1 % -59 .8% 30.1 % NM -71 .2% -88 .8% -11 .4% -42 .8% -47 .1% -56 .9% -67 .8% -91 .1% 32.5 % -25 .6% -33 .3% -17 .7% -99 .8% NM -35 .0% NM -49 .8% NM 25.6 % -99 .6% -56 .9% -68 .5% -70 .0% NM -88 .6% -55 .0% -82 .9% -51 .4% NM 1.8 % -73 .7% NM -39 .3% NM -19 .0% -19 .4% -65 .3% -96 .4% 1 08. 3% -99 .8% -36.9% -48 .4% 52 We ek -37. 2% -8.1 % -80. 0% -97. 0% -93. 6% -73. 8% -54. 8% -50. 0% -84. 5% -68. 9% -95. 6% 0.0 % -87. 5% -0.8 % -63. 9% -43. 8% -98. 0% -93. 6% -61. 5% -53. 1% -29. 3% -85. 1% -99. 6% -82. 8% -2.5 % -13. 0% -43. 7% -42. 9% -50. 6% -66. 0% -55. 0% -10. 3% -68. 0% -32. 0% -68. 5% -28. 6% -84. 5% -71. 4% -29. 0% -57. 0% -54. 6% -13. 7% -57. 1% -75. 6% -71. 8% -50. 0% -49. 5% -53. 4% 0.0 % -26. 0% -20. 4% -66. 3% -3.2 % -48. 3% -78. 3% -90. 3% -14. 2% -46. 6% -49. 9% -62. 7% -74. 9% -91. 6% -12. 2% -43. 6% -49. 2% -39. 8% -99. 9% -97. 0% -44. 8% -30. 0% -51. 6% -66. 7% -8.5 % -99. 7% -67. 7% -75. 2% -70. 0% -47. 4% -91. 1% -62. 0% -92. 5% -53. 9% -94. 6% -37. 5% -76. 6% -96. 3% -57. 5% -89. 4% -36. 2% -22. 9% -69. 5% -97. 1% 0.0 % -99. 9% -57.0% -57. 1% 451.8 Figure 19. Price Performance Source. Capital IQ
Slide 16: Page 16 C omparable C ompany A nalys is > W eb 2.0 V aluatio n Multiples C om pany Nam e Acce le rize N ew Me dia, Inc. Actoz S of t C o., L td. AQ Inte ractive , Inc. As s ocia ted Media Holdings Inc. B igstring Corp. B e tawave Corpora tion B e yond Commerce, Inc. B right T hings plc B roa dW ebAs ia Inc. C D C C orp. C hina G ate wa y C orpora tion C hine s e G amer International C ornerW orld C orporation C yberplex Inc. D AD A S pA D XN Holdings B hd D ibz Inte rnational, Inc. D igitalP ost Inte ra ctive , Inc. D igitalT own, Inc. D olphin D igital Me dia, Inc. E olith C o. L td. E xte ns ions , Inc. F inancia l Media G roup, Inc. F luid Mus ic Ca nada, Inc. F rogs te r Interactive P icture s AG G a ma nia D igital E ntertainment C o., L td. G a me On C o L td. G e oS e ntric O yj G iant Intera ctive G roup, Inc. G iga Media Ltd. G ravity C o., L td G ree, Inc. G ungH o O nline E ntertainment, Inc. H anbitS of t, Inc. IAC /InterActiveC orp. IAS E nergy, Inc. IdeaE dge, Inc. is ee media Inc. J umbuck E ntertainment P ty Ltd. J umpT V Inc. K a boos e Inc. K ings oft Co. Ltd. Lingo Media Corporation Live World Inc. LookS mart, Ltd. Magnitude Information S ys tems Inc. Mixi, Inc. Mode rn Times G roup Mtg AB Moggle , Inc MOK O.mobi L imited N E OW IZ G ames C orpora tion N etD ragon W ebS oft, Inc. N ete as e.com I nc. N eXplore Corpora tion N gi G roup Inc. N orthgate Te chnologies L imited Open T e xt Corp. Openwave S ys tems Inc. P e rf ect W orld C o., Ltd. P hotoChannel N etwork s Inc. Quepa s a C orp. OA O R B C Information S ys tems S handa Interactive E ntertainme nt L td. S hutte rf ly, Inc. S K C ommunications Co., Ltd. S N AP Inte ra ctive , Inc. S N M G lobal H oldings S ocia l Media V e nures , Inc. S ohu. com Inc. S ite s earch C orporation S park N etworks , Inc. S pectrumDN A, Inc. T encent Holdings L td. T he P arent C ompany T he 9 L imited T he S treet.com, Inc. T otal S port Online A S T ree.C om, Inc. U nis erve C ommunications Corp. U nited Online Inc. U OMO Media , Inc V a lueC lick Inc. V O IS , Inc. W ebze n Inc. W iz za rd S of twa re Corpora tion W oozyF ly, Inc. W orlds .com Inc. W ynds torm C orporation XIN G AG Y e dangOnline Corp. Y nk K orea Inc. ZipLocal Inc. H igh Low A vera ge Median S ec to r D irect Marketing G aming G aming Mobile Ins ta nt Mes s aging Me dia S ocia l Ne tworking S ocia l Ne tworking S ocia l Ne tworking G aming Mobile G aming C ontent Advertis ing S ocia l Ne tworking S ocia l Ne tworking S NS A pps C ontent S ocia l Ne tworking S ocia l Ne tworking G aming C ontent D irect Marketing Me dia G aming G aming G aming Mobile G aming G aming G aming S ocia l Ne tworking Me dia G aming Me dia V ide o S ocia l Ne tworking C ontent S ocia l Ne tworking V ide o C ontent G aming Le arning S ocia l Ne tworking D irect Marketing S ocia l Ne tworking S ocia l Ne tworking Me dia G aming S ocia l Ne tworking G aming G aming G aming C ontent Me dia D irect Marketing C ollaboration Mobile G aming D igital Imaging S ocia l Ne tworking Me dia G aming D igital Imaging S e arch D ating Me dia S ocia l Ne tworking G aming S ocia l Ne tworking S ocia l Ne tworking Me dia P orta l Me dia G aming Me dia Me dia P orta l S ocia l Ne tworking Me dia Me dia Me dia S ocia l Ne tworking G aming P odcas ting S ocia l Ne tworking C ontent C ontent S ocia l Ne tworking G aming G aming D irectory Co untry U nite d S tates S outh K ore a J a pan U nite d S tates U nite d S tates U nite d S tates U nite d S tates U nite d K ingdom U nite d S tates H ong K ong U nite d S tates T a iwan U nite d S tates C anada Italy Malays ia U nite d S tates U nite d S tates U nite d S tates U nite d S tates S outh K ore a U nite d S tates U nite d S tates U nite d S tates G ermany T a iwan J a pan F inland C hina T a iwan S outh K ore a J a pan J a pan S outh K ore a U nite d S tates C anada U nite d S tates C anada A us tralia C anada C anada C hina C anada U nite d S tates U nite d S tates U nite d S tates J a pan S we den U nite d S tates A us tralia S outh K ore a C hina C hina U nite d S tates J a pan India C anada U nite d S tates C hina C anada U nite d S tates R us s ia C hina U nite d S tates S outh K ore a U nite d S tates U nite d S tates U nite d S tates C hina U nite d S tates U nite d S tates U nite d S tates C hina U nite d S tates C hina U nite d S tates N orway U nite d S tates C anada U nite d S tates C anada U nite d S tates U nite d S tates S outh K ore a U nite d S tates U nite d S tates U nite d S tates U nite d S tates G ermany S outh K ore a S outh K ore a C anada P rimary E xc hange OT C B B K OS E TSE OT C P K OT C B B OT C B B OT C B B AIM OT C P K N as da qG S OT C B B GTS M OT C B B TSX CM KL SE OT C P K OT C B B OT C B B OT C B B K OS E OT C P K OT C B B TSX XT R A GTS M TSE H LS E NYS E N as da qG S N as da qG M TSE OS E K OS E N as da qG S OT C B B OT C B B T S XV AS X TSX TSX S E HK T S XV OT C P K N as da qG M OT C B B TSE OM OT C B B AS X K OS E S E HK N as da qG S OT C P K TSE BS E N as da qG S N as da qG S N as da qG S T S XV N as da qC M R TS N as da qG S N as da qG S K OS E OT C B B OT C P K OT C P K N as da qG S OT C B B AME X OT C B B S E HK OT C P K N as da qG S N as da qG M OT C NO N as da qG M T S XV N as da qG S OT C B B N as da qG S OT C B B N as da qG M AME X OT C B B OT C B B OT C B B XT R A K OS E K OS E T S XV Tic ker AC LZ A 052 790 3 838 AS MH BS G C B WA V BYO C AIM:B G T B WB A C HIN .A CG W Y G T S M:308 3 CWR L T S X:C X CM:DA D XN D IB Z DGL P D G TW DP DM A 041 060 E XT I F NGP T S X:F MN F RG 6 180 3 812 G E O1V GA G IG M GR VY T S E :3 632 3 765 A 047 080 IAC I IA S C .A OT C B B :IDA E IE E AS X:J MB T S X:J T V TS X:K AB 3 888 TS XV :LM LV W D L OOK MAG Y 2 121 MT G B MMO G MK B A 095 660 777 NT E S N XP C 2 497 59 005 7 O TE X OP W V PW R D T S XV :P N QP S A R B CI S NDA S FL Y A 066 270 S TVI S N MN S MV I S OH U STPC L OV S P XA 700 K ID S .Q NC T Y TSCM T OS O TR E E T S XV :U S S U N TD U OMO VC LK VOIS W ZE N W ZE W ZY F W DD D W YND O 1B C A 052 770 A 023 770 T S XV :ZIP US D Market Cap ($m) 13. 4 93. 2 26. 2 0. 1 0. 7 3. 2 61. 6 5. 0 38. 2 1 26. 3 0. 0 5 40. 7 6. 4 53. 8 1 23. 7 20. 2 0. 0 1. 3 63. 6 26. 1 40. 7 14. 2 0. 3 15. 0 27. 8 1 44. 4 90. 9 46. 7 1,9 21. 0 3 64. 7 25. 0 1,2 88. 0 1 62. 7 77. 9 2,2 43. 9 17. 5 18. 8 4. 2 16. 4 51. 0 67. 4 5 15. 9 9. 5 3. 1 23. 1 6. 5 7 57. 4 1,6 68. 7 83. 5 4. 4 4 18. 5 3 13. 1 3,7 22. 3 41. 8 45. 8 31. 9 1,7 40. 7 99. 1 8 85. 3 43. 3 11. 1 1 05. 7 3,2 81. 8 2 55. 1 3 06. 4 7. 0 0. 0 0. 0 1,9 26. 0 28. 2 46. 3 9. 7 15,3 25. 4 0. 3 2 47. 0 71. 9 0. 1 58. 3 0. 8 3 90. 2 5. 1 8 40. 6 2. 5 33. 0 25. 9 2. 6 8. 9 1. 6 1 99. 0 1 12. 7 8. 6 0. 3 15,3 25. 4 0. 0 451. 8 39. 4 TE V/LT M R evenue 4.7 x 0.9 x 8.1 x 23.6 x 35.5 x 20.6 x 0.4 x 0.0 x 10.6 x 6.0 x 1.1 x 0.8 x 0.5 x 5.6 x 2.2 x 0.0 x 5.2 x 1.1 x 0.4 x 6.9 x 1.5 x 40.8 x 1.2 x 1.2 x 0.3 x 2.1 x 0.9 x 2.6 x 1.1 x 3.7 x 3.1 x 0.2 x 5.4 x 1.4 x 3.3 x 3.0 x 1.9 x 0.2 x 2.4 x 0.1 x 2.6 x 0.0 x 0.1 x 0.8 x 2.0 x 1.8 x 1.1 x 0.0 x 3.8 x 0.8 x 15.9 x 0.2 x 4.6 x 0.3 x 0.1 x 1.0 x 8.6 x 1.1 x 4.3 x 3.1 x 2.2 x 0.6 x 0.6 x 40.8 x 0.0 x 4.2x 1.5 x TE V/ N TM R evenue 0.5x 0.8x 0.0x 1.5x 0.4x 1.0x 1.3x 2.2x 0.1x 1.8x 0.7x 0.8x 3.2x 0.3x 0.7x 1.3x 3.2x 0.0x 1.0x 0.8x TE V/LT M E BITDA 4.7 x 9.7 x 21.0 x 13.3 x 4.7 x 3.9 x 7.8 x 1.7 x 6.3 x 6.9 x 7.6 x 2.5 x 11.2 x 9.5 x 14.3 x 8.5 x 11.3 x 4.2 x 1.3 x 9.6 x 0.2 x 0.3 x 5.9 x 21.1 x 5.8 x 9.0 x 3.8 x 32.5 x 29.5 x 4.5 x 6.3 x 9.8 x 9.8 x 32.5 x 0.2 x 9.0x 7.6 x TE V/NTM E BITDA 6.5x 8.6x 6.4x 2.9x 6.3x 1 0.9 x 8.4x 1.3x 5.5x 1.6x 5.3x 7.6x 2.9x 5.5x 1 0.9 x 1.3x 5.7x 5.9x P /LT M E P S 15 .6x 28 .2x 11 .3x 7. 4x 3. 9x 18 .8x 9. 2x 1. 9x 11 .6x 16 .7x 7. 4x 13 .4x 36 .2x 4. 9x 23 .0x 10 .3x 2. 5x 13 .4x 2. 1x 35 .6x 1. 5x 2. 7x 57 .3x 9. 2x 12 .5x 11 .1x 43 .6x 0. 7x 75 .7x 3. 3x 21 .2x 12 .9x 75 .7x 0. 7x 16.4x 11 .4x P /NT M E P S 3 4.7 x 1 1.2 x 1 3.9 x 1 0.6 x 2 7.4 x 1 2.4 x 1 5.1 x 1 4.0 x 3 9.7 x 8.2x 2 0.1 x 1 5.2 x 1 2.5 x 1 0.1 x 6.6x 1 6.4 x 3 9.7 x 6.6x 16.7x 1 4.0 x P /TangBV 1 .8x 0 .4x 0 .3x 9 .5x 1 1.6x 0 .4x 1 .2x 2 .6x 2 .0x 1 .2x 4 .9x 0 .4x 3 .3x 1 9.8x 2 .6x 1 .1x 1 3.7x 2 .4x 1 .9x 2 .8x 3 .1x 1 .4x 0 .8x 5 .9x 3 .8x 1 3.6x 1 .7x 0 .7x 0 .7x 1 .3x 0 .5x 9 .5x 8 .3x 1 .3x 1 .5x 4 .6x 5 .9x 4 0.1x 1 4.7x 1 7.8x 0 .1x 0 .7x 0 .9x 8 .2x 5 .6x 0 .0x 5 .5x 6 .0x 4 0.1x 0 .0x 5.2x 2 .5x Figure 20. Valuation Comparison Source. Capital IQ
Slide 17: Page 17 C omparable C ompany A nalys is > W eb 2.0 Su mmary b y C ountry C om pany Nam e U nited S tates C anada C hina S outh K orea J a pa n T a iwa n A ustra lia G ermany N orway H ong K ong F inla nd I ta ly U nited K ingdom I ndia S weden R us sia M a la ys ia G rand To tal 41 11 9 9 6 3 2 2 1 1 1 1 1 1 1 1 1 92 U S D Market Cap ($m) C hina U nited S tates J a pan C anada S weden S outh K orea T a iwa n G erma ny H ong K ong I ta ly R uss ia F inland I ndia Aus tra lia M alays ia U nited K ingdom N orway G rand T otal 28, 137.7 4, 524.4 2, 370.8 1, 993.6 1, 668.7 1, 115.9 1, 049.8 226.7 126.3 123.7 105.7 46.7 31.9 20.8 20.2 5.0 0.1 41,568.1 Avg US D Mar ket C ap ($m) China S weden Japan Ta iwa n Ca na da Hong K ong S outh K orea Ita ly G erma ny United S tates R us sia Finland India Malay sia Australia United K ingdom Norway G rand Total 3,126. 4 1,668. 7 395. 1 349. 9 181. 2 126. 3 124. 0 123. 7 113. 4 110. 4 105. 7 46. 7 31. 9 20. 2 10. 4 5. 0 0. 1 451.8 U S D LT M T otal R ev ($m) U nited S ta tes C hina S weden C a na da S outh K orea J a pa n H ong K ong T aiwan I ta ly R uss ia I ndia M a la ys ia G ermany Aus tra l ia F inla nd N orwa y U nited K ingdom G rand T otal 3, 744. 3 3, 353. 2 1, 572. 8 944. 7 552. 0 503. 0 428. 1 348. 0 221. 2 141. 0 135. 1 76. 7 50. 8 13. 8 5. 7 2. 0 0. 2 12,092.7 U S D LT M Total E B IT DA ($m) C hina S weden U nited S ta tes C a na da J apan T a iwan S outh K orea I taly I ndia H ong K ong R uss ia G erma ny M alays ia Aus tralia N orway U nited K ingdom F inland G r and T otal 1,655. 9 253. 7 240. 1 186. 1 132. 4 85. 5 63. 0 35. 3 23. 8 18. 8 18. 4 11. 4 10. 2 2. 6 -1. 0 -1. 6 -12. 8 2,721.9 E B IT DA % C hina Aus tral ia T aiwa n J a pa n I ndia S weden I ta ly M a la ys ia R uss ia S outh K orea H ong K ong U nited S ta tes G ermany C anada N orway U nited K ingdom F inla nd G rand T otal 48. 4% 37. 2% 29. 7% 26. 1% 17. 6% 16. 1% 16. 0% 13. 3% 13. 1% 4.7% 4.4% -11.0% -14.3% -18.0% -50.6% #DI V /0! #DI V /0! 6.9% Figure 21. Comparison by Country Source. Capital IQ C omparable C o mpan y A nalys is > W eb 2.0 Su mmary b y Ex c hange C om pan y Nam e OT C B B N a s daqG S OT C P K K OS E TSE N a s daqG M T S XV TSX S E HK A ME X XT R A ASX GT S M OT C NO HLS E NY S E CM BSE N a s daqC M OS E A IM OM R TS K LS E Gr an d To tal 22 13 9 7 5 5 5 4 3 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 92 U S D Market Cap ($m) S E HK N a sdaqG S TSE NYS E OM K OS E GT SM O T CB B XT RA N a sdaqG M TSX OS E CM R TS O T CP K AM E X T S XV HLS E BSE AS X K LS E N a sdaqC M AI M O T CN O G rand T otal 16, 154.3 16, 123.0 2, 208.2 1, 921.0 1, 668.7 1, 057.9 685.1 368.8 226.7 211.3 187.1 162.7 123.7 105.7 97.7 72.2 58.0 46.7 31.9 20.8 20.2 11.1 5.0 0.1 41, 568.1 Avg US D Market C ap ($m) S E HK NY S E OM Nas daqG S TS E G TS M OS E K OS E CM XT R A RTS TS X HL S E Nas daqG M AME X BSE K LS E O TC B B TS X V Nas daqC M O TC P K AS X AIM O TC NO G ran d To tal 5,384. 8 1,921. 0 1,668. 7 1,240. 2 441. 6 342. 5 162. 7 151. 1 123. 7 113. 4 105. 7 46. 8 46. 7 42. 3 36. 1 31. 9 20. 2 16. 8 11. 6 11. 1 10. 9 10. 4 5. 0 0. 1 451. 8 U S D LT M T otal R ev ($m) OM N asdaqG S S EHK NYS E CM R TS BSE OS E N asdaqG M GTS M TSE K LS E K OS E TSX AM E X XT R A OT CP K T S XV AS X H LS E OT CB B OT CN O AI M N asdaqC M G rand T otal 1, 572. 8 492. 7 418. 5 233. 6 221. 2 141. 0 135. 1 114. 9 84. 6 78. 8 77. 6 76. 7 70. 6 32. 8 31. 7 25. 4 21. 0 9. 6 6. 9 5. 7 2. 0 2. 0 0. 2 0. 1 145. 7 U S D LT M To tal E B IT DA ($m) N a sdaqG S S E HK OM NYS E TSE K OS E GT S M CM BSE OS E R TS X TR A K LS E AM E X AS X OT CNO AI M TSX T S XV N a sdaqC M HLS E N a sdaqG M OT CP K OT CB B G rand T otal 1,522. 8 598. 8 253. 7 144. 6 111. 9 60. 2 39. 4 35. 3 23. 8 20. 5 18. 4 11. 4 10. 2 6. 3 2. 6 -1. 0 -1. 6 -6. 4 -9. 8 -11. 4 -12. 8 -16. 1 -26. 5 -52. 5 2,721. 9 E B IT DA % NYS E S E HK AS X GT S M TSE N a sdaqG S OS E BSE OM CM K LS E R TS K OS E N a sdaqG M XT RA TSX T S XV OT CP K OT CB B AM E X OT CNO AI M N a sdaqC M HLS E G rand T otal 61. 9% 44. 4% 37. 2% 32. 5% 27. 7% 26. 8% 17. 8% 17. 6% 16. 1% 16. 0% 13. 3% 13. 1% 6.1% -0. 9% -14.3% -14.8% -15.6% -27.9% -31.8% -38.3% -50.6% #DI V /0! #DI V /0! #DI V /0! 6.9% Figure 22. Comparison by Exchange Source. Capital IQ
Slide 18: Page 18 Financing - Last Three Months (US$ m) Month F eb-09 C ompany Name Twitter S ynthas ite Tremor Media Offerpal Media Imagini E mergent Game Technologies Outbrain Tvtrip Tongxue Oodle TextDigger OneS pot Mixpo F etchDog Virtual F airground 7 B illion P eople F amilyL ink.com W his tleB ox Mendeley Outright Tvinc i F iltrbox MMO L ife C ake F inancial fav.or.it F eb-09 Total Mar-09 Kaixin001.com Vidyo B uzznet L endingC lub S endMe Inc . Auditude G lam Media S uperS ec ret GoViral G reys tripe OMG P OP Apture S imulmedia Tynt AnyS ource Media P ixazza B it.ly Hunch S ports C ompos ite DE AdultS pac e Myngle 33Acros s Three Melons Mar-09 Total Apr-09 C ollec tive Media GOOM Radio The R ubicon P roject C ellufun S canS c out Batanga DoubleTwis t S oc ialtext SoundCloud TubeMogul Tribal Nova Tripbase S oc ialcas t S can & Target Foodista Apr-09 Total G rand Total US A France US A US A US A USA US A US A Germany US A Canada USA US A F ra nce USA 16. 0 8. 0 8. 1 7. 5 5. 0 4. 5 3. 3 3. 0 2. 5 2. 0 1. 4 1. 3 9.4 24.0 8.0 9.3 0.6 0. 6 24.3 90.1 42.5 169.1 4.1 105.7 12.0 24.0 22.5 2.0 2.0 5. 0 10. 0 China US A US A US A US A US A US A US A UK US A US A US A US A C ana da US A US A US A US A US A US A Netherlands US A Argentina C ountry US A S outh Africa US A US A UK US A Is rael F ra nce C hina US A US A US A C ana da US A Netherlands US A US A US A UK US A Is rael US A Netherlands US A UK Angel/S eed Debt financing P IP E S eries A S eries B 20. 0 18. 0 15. 0 13. 5 12. 5 12. 0 9. 0 6. 0 5. 6 4. 3 4. 2 4. 0 4. 0 4. 0 3. 0 2. 9 2. 3 2. 0 2. 0 1. 6 1. 4 1. 3 1. 3 0. 7 24.8 S eries C 35. 0 S eries D S eries E S ereis A G rand Total 35. 0 20. 0 18. 0 15. 0 13. 5 12. 5 12. 0 9. 0 6. 0 5. 6 4. 3 4. 2 4. 0 4. 0 4. 0 3. 0 2. 9 2. 3 2. 0 2. 0 1. 6 1. 4 1. 3 1. 3 0. 7 185.5 20. 0 15. 0 12. 5 12. 0 12. 0 10. 5 10. 0 10. 0 8. 8 5. 5 5. 0 4. 1 4. 0 3. 9 3. 2 3. 1 2. 0 2. 0 2. 0 1. 3 1. 3 0. 8 1.3 1.3 0. 6 0.6 41.1 50.3 20. 0 43.0 12.0 10.0 15. 0 12. 5 12. 0 12. 0 10. 5 10. 0 10. 0 8. 8 5. 5 5. 0 4. 1 4. 0 3. 9 3. 2 3. 1 2. 0 2. 0 2. 0 1. 3 1. 3 0. 8 0. 6 159.5 20. 0 16. 0 13. 0 10. 0 8. 1 7. 5 5. 0 4. 5 3. 3 3. 0 2. 5 2. 0 1. 4 1. 3 0. 6 102.3 447.3 13.3 76.4 20. 0 58.6 12.5 Figure 23. Financing, Last Three Months Source. Company reports
Slide 19: Page 19 C ompany Des c riptio ns - C urrent Mo nth C apital Market A c tivity C ompany B atanga HQ U nited S ta tes W ebs ite www. ba ta nga .c om Des criptio n B atanga, Inc. opera tes a s a media a nd enterta inment c ompany for His pa nic s. I t offers online entertainment, suc h as Internet ra dio, mus ic videos , artist interviews, a nd L atin-centric enterta inment c ontent, a s well a s s ocia l network ing. T he compa ny publishes ma ga z ines, a s well as promotes a nd executes cus tom and s ponsor driven music -oriented ev ents . I t a lso owns a d network ta rgeting His panic s. T he company wa s founded in 1999 a nd is ba s ed in C oral G ables , Florida with an a dditional offic e in N ew Y ork. As of Dec ember 2, 2005, B a ta nga , I nc . operates a s a subs idiary of Hi spa nic M edia, I nc. C ellufun, LL C opera tes as a n ad s ponso red mobile ga ming portal. The company’ s portal provides free enterta inment content, a s well a s cas ua l, connected, a nd multiplay er games for ex isting a nd next-generation W eb-ena bled mobile phones . It a l so offers free s ingle-pla yer games, a s well as multi-player vers ions on a s ubs cription ba s is . The c ompany ena bles subs cribers to persona liz e their ga ming profile; sa ve scores ; crea te tea ms; partic ipa te in tournaments ; a nd sha re informa tion rela ted to tips , trick s, a nd bra gging rights . C ellufun wa s founded in 2005 and is bas ed in New Y ork, N ew Y ork. C ollective Media , I nc. opera tes a s a n online a dvertising network tha t specializ es in audienc e ta rgeting a nd optimiz ation s olutions for publishers a nd a dvertis ers in the United S ta tes. I t provides con text, beha v ior, re-ta rgeting, demogra phic, a nd geogra phic ta rgeting; a nd dashboard, a reporting interfac e that pres ents a nd ma nipula tes ad performa nce da ta generated by ca mpa igns. T he compa ny a ls o offers a network of online news s ites , a s well as enterta inment, s ports , a nd health si tes . In addition, it provides bra nd a dvertis ing a nd direct ma rketing services . T he company wa s founded in 2005 a nd is bas ed in N ew Y ork, New Y ork . doubleTwist C orpora tion des igns a nd develops entertai nment s oftwa re a pplica tions . T he company applica tions s hares a nd s y nchroniz es pictures , video, and audio to medi a dev ices . I t offers doubleT wis t desk top, a n a pplica tion tha t ena bles c lients to tra ns fer, sha re, a nd sy nc persona l media ; a nd Twis t me! , a network applica tion tha t a llows us ers to share photos, video, and audio files from the c lient’s profile pages. doubleTwist C orpora tion wa s founded in 2007 a nd is ba s ed in S an F ra nc isco, Ca li fornia with an a dditiona l office in O s lo, Norway. F oodis ta is a W iki pedia for rec ipes, food, a nd c ooking. R eci pes are contributed a nd edited in a wik i in a n a ttempt to avoid numerous repeats of the s ame rec ipe. The s ite ta k es a structured da ta a pproa ch a ki n to I MD B , where every ingredient, c ooking technique, utens il, and dis h links to Medi a other mention on the ssta tions . I t broa dc asts music , wea ther, news , a nd music news through I nternet. In addition, the c ompany G o O n every opera tes digita l radio ite. opera tes a community for interaction between the c reators of ra di os. T he c ompa ny was founded in 2007 a nd is ba sed in S aint C loud, F ra nc e. s t, I nc . provides s oc ial mark eting a pplic ation pla tform that ena bles c ontent pub lishers a nd a dvertis ers to rea ch a udienc es a cross the Mix erca soc ia l W eb. It offers MC ast P latform that includes a s et of tools and s ervi ces to c reate, distribute, monetiz e, a nd track va rious types of social ma rk eting a pplic a tions, inc luding widgets, ma s h-ups, F a c ebook a nd M yS pac e apps, and portab le c ontent or bra nd experienc es. M ixerc ast, Inc . wa s formerly k nown a s Na noc ast L a bs, I nc . The compa ny wa s founded in 2005 and is ba s ed in S a n M a teo, C alifornia . S ca n & Target provides s oftwa re a s a serv ice solution for the ana lys is and filtering of tex t user genera ted content. I t offers its a na lys is solution for va rious a pplica tions, s uc h a s modera ting and monetiz ing us er generated content, routing and qua lity c ontrol, v alida ting a ds a nd listings , a nd populating cus tomer relations hip ma na gement da ta bases . T he compa ny provides its s olution in various platforms , suc h as Internet, mobile, a nd intera ctive televis ion for pub lishers of onl ine communities, modera ting s ervice providers , a nd suppliers of technology solutions . S ca n & Ta rget wa s founded in 2007 and is ba s ed in P utea ux, F rance. S ca nS cout, Inc. opera tes as a n online video advertising network. I t s erves publis hers , advertise rs , a nd ad network s . The company was founded in 2005 a nd is ba s ed in B oston, M ass a chus etts with additiona l offic es in New Y ork a nd L os Angeles . S oci a lcas t provides soc ial network ing pla tforms a nd s olutions for both consumer-fa cing clients and enterpris e cus tomers . The compa ny wa s founded in 2005 a nd is ba s ed in Irv ine, C al ifornia . S oci a ltext Inc orpora ted develops enterpris e s oc ia l s oftware. T he company focus es on offering c olla bora tion platform tha t a llows organizations to c ollaborate. It offers P eople, whic h ena bles users to integra te s oc ial network ing with enterprise colla bora tion; W eblog tha t supports colla bora tiv e a nd ongoing conv ersa tions a mong collea gues ; W orks pa c e, an enterpris e wiki for sea rc hing informa tion and people; a nd S ig na ls tha t a mplifies, cla rifies, and complements other c ollabora tion ac tiv ities , a s well a s prov ides a medium for information s ha ring. The c ompa ny a ls o provides D ashboa rd, which aggrega tes content from S oc ialtex t wik i pa ges , the W eb, a nd enterprise sy stems; an d S oci a lC alc s preadsheets tha t inc lude informa tion from other sprea ds heets or works pace pa ges . The compa ny wa s founded in 2002 a nd is based in P a lo Alto, C a lifornia . S oundC loud L td. provides an online audio pla tform for recei ving, s ending, and distributing music for a rtis ts , record la bels , a nd other music profes s iona ls. T he compa ny was founded in 2007 a nd is ba sed in B erlin, G erma ny . R ubic on P roject, I nc. , an a dv ertis ing technology c ompa ny , provides online a dv ertis ing solutions to W eb publishers a nd a d networks . I t also offers a d network optimiz a tion serv ices , a s well a s ad qua lity protection progra ms . In a ddition, the company prov ides solutions to s top unwa nted a ds in tra ck s by protecting W eb publis hers. T he compa ny was founded in 1998 a nd is ba sed in Los Angeles, Ca lifornia. Tripbas e is a tra vel webs ite that gives you unbiased recommenda tions a bout where to go o n y our next trip based on wha t y ou lik e. Triba l Nov a , I nc. dev elops a nd ma rk ets Internet s ites , online ga mes , intera ctive televis ion programs , a nd cellula r telephony c ontent for children. It produc es a n arra y of ga mes ranging from educ a tiona l pres chooler online ga mes , s uch a s Ca i llou to multiplayer online role pla yi ng game for teens, suc h as Ma gi Na tion. The compa ny opera tes at the internationa l level in E urope and N orth America . T riba l Nova , Inc . wa s founded in 2004 a nd is ba s ed in Montrea l, Ca nad a. TubeM ogul, I nc. opera tes as a n online video ana lytics a nd dis tribution company worldwide. It focuses on prov iding v ideo publis hing tools . The c ompa ny provides a single point for deploy ing uploads to the video s haring s ites , a nd a nalytics on who, wha t, a nd how v ideos are being viewed. It serv es content produc ers, media companies , a d a ge ncies , digita l consulta nts, record la be ls, film s tudios , politicians , c onsumer products orga niz a tions , and corporations. The compa ny wa s founded in 2006 a nd is ba sed in B erkeley , C alifornia. C ellu fun , LL C U nited S ta tes www. cellufun. com C ollec tive Media, Inc . U nited S ta tes www. collective-media . com do ubleT wis t Corpo ration U nited S ta tes www. doubletwis t. com F o odis ta G o On Media Mixerc as t, In c . U nited S ta tes F rance U nited S ta tes www. foodista .com www. goomradio.c om www. mixerc a st.com S c an & Target F rance www. s cana ndta rget. c om S c anS co ut, In c. S ocialcas t S ocialtext In corporated U nited S ta tes U nited S ta tes U nited S ta tes www. s cans cout. com www. s ocialca st. com www. s ocialtext.com S oundClou d L td. R ubicon P roject, Inc . G erma ny U nited S ta tes s oundc loud.c om www. rubiconproject.com T ripbas e T ribal No va, In c. U nited S ta tes C a nada www. tripba se. com www. triba lnova. com/en/ T ubeMogul, Inc. U nited S ta tes www. tubemogul. c om Figure 24. Company Descriptions Source. Company reports, Capital IQ, Crunchbase
Slide 20: Page 20 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 www.researchcapital.com

   
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