Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword
Like this
1Activity
0 of .
Results for:
No results containing your search query
P. 1
09-05-26 Web 2.0 Weekly

09-05-26 Web 2.0 Weekly

Ratings: (0)|Views: 22 |Likes:
Published by David Shore
Month-to-date financings in May totalled $106.6 million; led by the $20 million One Net financing. So far, there have been 18 financings in May, with 10 deals greater than $5 million and only five less than $5 million. There have been two financings greater than $10 million (Cyberplex and One Net), with the capital raises by Imeem and EveryZing close behind at $8.8 million and $8.3 million, respectively. The average value thus far in May is $5.9 million, slightly below the average value for April of $6.5 million on 21 financings. The March average was $6.6 million on 24 financings. Except for two deals (Kaixin001.com and Collective Media), all were below $20 million for the last three months and a total of four deals were greater than or equal to $15 million.

One Net’s $20 million financing is largest deal in May: One Net announced a $20 million financing last week, the largest deal so far in May. Ten of the 18 deals in the month are equal to or greater than $5 million. For additional details, see Figures 23 and 24 (at end of note). Also note that the spin-off of StumbleUpon from E-bay on a $29 million valuation occurred in May. E-bay had bought StumbleUpon for $75 million.

A strong price performance week: The companies in our universe had relatively strong stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with 31 companies showing positive returns on the week. OpenWave Systems (NASDQ:OPWV) led the group with a 49.2% return, while DigitalTown (OTCBB:DGTW) had the worst return, dropping 35.0% in the week.
Month-to-date financings in May totalled $106.6 million; led by the $20 million One Net financing. So far, there have been 18 financings in May, with 10 deals greater than $5 million and only five less than $5 million. There have been two financings greater than $10 million (Cyberplex and One Net), with the capital raises by Imeem and EveryZing close behind at $8.8 million and $8.3 million, respectively. The average value thus far in May is $5.9 million, slightly below the average value for April of $6.5 million on 21 financings. The March average was $6.6 million on 24 financings. Except for two deals (Kaixin001.com and Collective Media), all were below $20 million for the last three months and a total of four deals were greater than or equal to $15 million.

One Net’s $20 million financing is largest deal in May: One Net announced a $20 million financing last week, the largest deal so far in May. Ten of the 18 deals in the month are equal to or greater than $5 million. For additional details, see Figures 23 and 24 (at end of note). Also note that the spin-off of StumbleUpon from E-bay on a $29 million valuation occurred in May. E-bay had bought StumbleUpon for $75 million.

A strong price performance week: The companies in our universe had relatively strong stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with 31 companies showing positive returns on the week. OpenWave Systems (NASDQ:OPWV) led the group with a 49.2% return, while DigitalTown (OTCBB:DGTW) had the worst return, dropping 35.0% in the week.

More info:

Published by: David Shore on May 26, 2009
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

05/11/2014

pdf

text

original

 
 
SOFTWARE & SERVICES 26 MAY 2009
WEB 2.O WEEKLY
DAVID SHORE, CFA, MBA 416.860.6784
david.shore@researchcapital.com
Arun Thomas (Associate) 416.860.7666 
AVERAGE VALUATIONS DRIFT LOWER
AVERAGE FINANCING DROPS BELOW $6 MM DESPITE $20 MM ONE NET FINANCING
Month-to-date financings in May totalled $106.6 million; led by the $20 million One Net financing. So far, there havebeen 18 financings in May, with 10 deals greater than $5 million and only five less than $5 million. There have beentwo financings greater than $10 million (Cyberplex and One Net), with the capital raises by Imeem and EveryZingclose behind at $8.8 million and $8.3 million, respectively. The average value thus far in May is $5.9 million, slightlybelow the average value for April of $6.5 million on 21 financings. The March average was $6.6 million on 24financings. Except for two deals (Kaixin001.com and Collective Media), all were below $20 million for the last threemonths and a total of four deals were greater than or equal to $15 million.
Financing Activity Last Three Months
0.020.040.060.080.0100.0120.0140.0160.0180.0Mar-09Apr-09May-09
   (   U   S   $  m   )
0.01.02.03.04.05.06.07.0
   (   U   S   $  m   )
TotalAverage
 
One Net’s $20 million financing is largest deal in May:
One Net announced a $20 million financing last week, thelargest deal so far in May. Ten of the 18 deals in the month are equal to or greater than $5 million. For additionaldetails, see Figures 23 and 24 (at end of note). Also note that the spin-off of StumbleUpon from E-bay on a $29million valuation occurred in May. E-bay had bought StumbleUpon for $75 million.
A strong price performance week:
The companies in our universe had relatively strong stock price performancesover the past week (for stocks with prices greater than $1) (Figure 6), with 31 companies showing positive returns onthe week. OpenWave Systems (NASDQ:OPWV) led the group with a 49.2% return, while DigitalTown (OTCBB:DGTW)had the worst return, dropping 35.0% in the week.
This report has been created by Analysts that are employed by Research Capital Corporation, a Canadian Investment Dealer.
 
For further disclosures, please see last page of this report.
www.researchcapital.comToronto 416.860.7600 Montreal 514.399.1500 Vancouver 604.662.1800 Calgary 403.265.7400 Regina 306.566.7550
 
 
 Page 2
THE WEB 2.0 UNIVERSE
Ninety-three public Web 2.0 companies = $50 billion market cap:
Our Web 2.0 universe contains 93 companies, with acombined market cap of approximately $49.4 billion (Figure 1). The average market cap for the group is ~$530 million (buta median of only $53 million), with average trailing revenue of $152 million (median $54 million). The companies are alsogenerally profitable, with a median EBITDA margin of 17%. On a valuation basis, the overall average is 5.4x trailingrevenue (median 1.8x) and 9.3x trailing EBITDA (median 8.6x). Fourteen of the companies have more than 500employees.
Comparable Company Analysis > Web 2.0
Company NameLTM as ofTickerExchangeTradingCurrencyHQCurrentPriceUSD MarketCap ($m)USD LTM TotalRev ($m)USD LTM TotalEBITDA ($m)EBITDA%TEV/LTMRevenueTEV/LTMEBITDAEmployees
Accelerize New Media, Inc.3/31/2009ACLZOTCBBUSDUnited States0.5214.4 4.1 (4.4)NM4.7x- 11Actoz Soft Co., Ltd.12/31/2008A052790KOSEKRWSouth Korea21,750149.0 74.9 14.9 20.0%1.6x8.1x NAAQ Interactive, Inc.12/31/20083838TSEJPYJapan67,000.0038.4 63.5 5.1 8.0%0.1x1.6x NAAssociated Media Holdings Inc.6/30/2007ASMHOTCPKUSDUnited States00.1 0.1 (2.3)NM8.1x- 3Bigstring Corp.12/31/2008BSGCOTCBBUSDUnited States0.021.2 0.1 (2.1)NM31.7x- 4Betawave Corporation3/31/2009BWAVOTCBBUSDUnited States02.6 8.4 (12.6)NM-- 53Beyond Commerce, Inc.3/31/2009BYOCOTCBBUSDUnited States1.1551.0 7.1 (9.5)NM7.8x- 43Bright Things plc9/30/2008AIM:BGTAIMGBPUnited Kingdom04.7 0.3 (1.8)NM17.6x- 9BroadWebAsia Inc.9/30/2008BWBAOTCPKUSDUnited States0.3025.3 0.0 (4.6)NM-- 46CDC Corp.3/31/2009CHIN.ANasdaqGSUSDHong Kong1151.7 389.9 30.8 7.9%0.4x5.4x NAChangyou.com Limited3/31/2009CYOUNasdaqGSUSDChina29.011,595.6 222.5 135.1 60.7%6.3x10.4x 628China Gateway Corporation9/30/2008CGWYOTCPKUSDUnited States00.0 6.7 (6.6)-98.9%0.0x- 37Chinese Gamer International3/31/2009GTSM:3083GTSMTWDTaiwan378.00974.9 56.6 31.7 56.0%16.0x28.6x NACornerWorld Corporation1/31/2009CWRLOTCBBUSDUnited States05.8 1.3 NM NM5.5x- NACyberplex Inc.3/31/2009TSX:CXTSXCADCanada1.7482.9 72.5 7.5 10.3%1.1x10.5x NADADA SpA9/30/2008CM:DACMEURItaly6134.5 237.4 37.9 16.0%0.8x4.9x NADXN Holdings Bhd2/28/2009DXNKLSEMYRMalaysia0.4126.8 79.3 10.9 13.7%0.5x3.9x NADibz International, Inc.NADIBZOTCPKUSDUnited States00.0 NA NM NM-- NADigitalPost Interactive, Inc.12/31/2008DGLPOTCBBUSDUnited States0.021.4 0.5 (3.2)NM5.6x- 7DigitalTown, Inc.2/28/2009DGTWOTCBBUSDUnited States135.2 NM (3.0)NM-- 3Dolphin Digital Media, Inc.3/31/2009DPDMOTCBBUSDUnited States0.6835.1 0.8 (3.7)NM46.8x- NAEolith Co. Ltd.12/31/2008A041060KOSEKRWSouth Korea84048.6 14.8 (3.5)-23.6%3.4x- NAExtensions, Inc.12/31/2008EXTIOTCPKUSDUnited States0.1514.2 NM NM NM-- 2Financial Media Group, Inc.2/28/2009FNGPOTCBBUSDUnited States00.3 7.2 2.4 34.1%-- 22Fluid Music Canada, Inc.12/31/2008TSX:FMNTSXCADUnited States0.7535.0 4.6 (9.3)NM5.3x- NAFrogster Interactive Pictures AG6/30/2008FRGXTRAEURGermany826.2 5.6 (3.4)-60.6%4.6x- NAGamania Digital Entertainment Co., Ltd.3/31/20096180GTSMTWDTaiwan52.80245.8 127.1 21.1 16.6%1.8x10.5x NAGameOn Co Ltd.12/31/20083812TSEJPYJapan96,70098.5 78.6 20.3 25.9%0.5x2.0x NAGeoSentric Oyj12/31/2008GEO1VHLSEEURFinland0.0562.7 6.1 (13.8)NM8.9x- 94Giant Interactive Group, Inc.12/31/2008GANYSEUSDChina81,866.8 233.6 144.6 61.9%-- NAGigaMedia Ltd.12/31/2008GIGMNasdaqGSUSDTaiwan5.95321.5 190.4 46.0 24.2%1.3x5.3x NAGravity Co., Ltd9/30/2008GRVYNasdaqGMUSDSouth Korea132.8 39.3 7.5 19.2%-- 636Gree, Inc.6/30/2008TSE:3632TSEJPYJapan5,300.001,247.3 31.0 11.1 36.0%37.6x- NAGungHo Online Entertainment, Inc.12/31/20083765OSEJPYJapan155,000187.1 118.5 21.1 17.8%1.4x7.8x NAHanbitSoft, Inc.12/31/2008A047080KOSEKRWSouth Korea5,520.0097.1 55.8 (15.7)-28.2%1.4x- NAIAC/InterActiveCorp.3/31/2009IACINasdaqGSUSDUnited States152,334.7 1,406.4 42.6 3.0%0.3x10.5x 3,200IAS Energy, Inc.1/31/2009IASC.AOTCBBUSDCanada0.2618.2 0.0 (0.8)NM-- NAiseemedia Inc.12/31/2008IEETSXVCADCanada04.1 1.3 (5.3)NM1.8x- NAJumbuck Entertainment Pty Ltd.12/31/2008ASX:JMBASXAUDAustralia0.4115.9 14.0 5.2 37.2%0.8x2.1x 72JumpTV Inc.12/31/2008TSX:JTVTSXCADCanada180.9 13.4 (8.4)-62.6%4.7x- 237Kaboose Inc.3/31/2009TSX:KABTSXCADCanada0.6175.9 73.2 8.7 11.9%1.1x9.3x NAKingsoft Co. Ltd.12/31/20083888SEHKHKDChina6783.0 120.3 46.6 38.7%6.2x15.9x 2,271Lingo Media Corporation12/31/2008TSXV:LMTSXVCADCanada1.0512.0 0.9 (1.5)NM11.6x- NALiveWorld Inc.12/31/2008LVWDOTCPKUSDUnited States02.2 11.8 (0.5)-4.3%0.1x- NALookSmart, Ltd.3/31/2009LOOKNasdaqGMUSDUnited States1.2821.9 60.7 (3.8)-6.3%-- 90Magnitude Information Systems Inc.12/31/2008MAGYOTCBBUSDUnited States04.6 0.1 (3.0)NM-- 14Mixi, Inc.3/31/20092121TSEJPYJapan470,000.00761.4 127.0 45.0 35.4%5.1x14.3x NAModern Times Group Mtg AB3/31/2009MTG BOMSEKSweden2211,938.6 1,796.0 275.1 15.3%1.4x9.1x 2,969Moggle, Inc3/31/2009MMOGOTCBBUSDUnited States2.3083.5 NM NM NM-- 3MOKO.mobi Limited12/31/2008MKBASXAUDAustralia04.1 1.1 (2.3)NM2.6x- NAMyriad Group AG12/31/2008MYRNSWXCHFSwitzerland6.00118.0 40.0 0.8 1.9%3.3x- 405NEOWIZ Games Corporation12/31/2008A095660KOSEKRWSouth Korea77,500598.5 198.7 53.3 26.8%3.0x11.0x NANetDragon WebSoft, Inc.3/31/2009777SEHKHKDChina5.45371.6 87.1 34.4 39.5%2.7x6.8x 2,426Netease.com Inc.3/31/2009NTESNasdaqGSUSDChina334,030.0 471.1 306.2 65.0%-- NANeXplore Corporation9/30/2007NXPCOTCPKUSDUnited States0.7039.0 NM (4.9)NM-- 19Ngi Group Inc.12/31/20082497TSEJPYJapan34,00044.3 103.6 31.9 30.8%-- NANorthgate Technologies Limited12/31/2008590057BSEINRIndia37.0027.3 142.5 25.1 17.6%0.2x1.1x 286Open Text Corp.3/31/2009OTEXNasdaqGSUSDCanada321,657.6 782.6 199.2 25.5%2.2x8.7x 3,400Openwave Systems Inc.3/31/2009OPWVNasdaqGSUSDUnited States1.79149.1 197.2 (2.1)-1.0%0.2x- 630Perfect World Co., Ltd.3/31/2009PWRDNasdaqGSUSDChina191,020.3 228.4 124.7 54.6%-- NAPhotoChannel Networks Inc.3/31/2009TSXV:PNTSXVCADCanada1.7152.0 19.3 0.5 2.3%2.6x- NAQuepasa Corp.3/31/2009QPSANasdaqCMUSDUnited States112.2 0.1 (10.8)NM-- 74OAO RBC Information Systems12/31/2007RBCIRTSUSDRussia1.25173.4 152.8 20.0 13.1%0.0x0.3x NAShanda Interactive Entertainment Ltd.12/31/2008SNDANasdaqGSUSDChina553,811.2 522.8 240.2 46.0%0.3x0.6x NAShutterfly, Inc.3/31/2009SFLYNasdaqGSUSDUnited States14.29359.7 215.2 28.3 13.2%1.4x10.4x 514SK Communications Co., Ltd.12/31/2008A066270KOSEKRWSouth Korea10,200336.5 184.7 12.0 6.5%1.8x28.0x NASNAP Interactive, Inc.3/31/2009STVIOTCBBUSDUnited States0.758.1 3.3 0.9 28.0%2.0x7.2x 11SNM Global Holdings9/30/2008SNMNOTCPKUSDUnited States00.0 2.0 (0.7)-34.8%1.1x- 33Social Media Venures, Inc.12/31/2008SMVIOTCPKUSDUnited States0.010.0 0.1 (0.1)-60.5%0.0x- NASocialwise, Inc.3/31/2009SCLWOTCBBUSDUnited States132.1 0.0 (4.8)NM-- NASohu.com Inc.3/31/2009SOHUNasdaqGSUSDChina54.242,075.4 460.0 200.5 43.6%3.7x8.5x 3,197Sitesearch Corporation1/31/2009STPCOTCBBUSDUnited States328.2 NM (1.1)NM-- 15Spark Networks, Inc.3/31/2009LOVAMEXUSDUnited States2.2546.3 54.3 11.8 21.7%0.9x4.0x 183SpectrumDNA, Inc.3/31/2009SPXAOTCBBUSDUnited States019.5 0.1 (2.6)NM-- 7 Tencent Holdings Ltd.3/31/2009700SEHKHKDChina78.2518,192.6 1,205.0 577.4 47.9%16.4x34.1x 6,194 The Parent Company8/2/2008KIDS.QOTCPKUSDUnited States00.2 112.0 (13.5)-12.0%0.2x- 347 The9 Limited12/31/2008NCTYNasdaqGSUSDChina8.97240.6 250.2 84.3 33.7%-- NA TheStreet.com, Inc.3/31/2009TSCMNasdaqGMUSDUnited States258.2 67.0 1.9 2.9%-- 310 Total Sport Online AS3/31/2006TOSOOTCNONOKNorway0.030.1 2.1 (1.1)-50.6%4.6x- 16 Tree.Com, Inc.3/31/2009TREENasdaqGMUSDUnited States12131.7 215.6 (13.3)-6.2%0.6x- 700Uniserve Communications Corp.2/28/2009TSXV:USSTSXVCADCanada0.051.1 23.2 0.1 0.2%0.2x- NAUnited Online Inc.3/31/2009UNTDNasdaqGSUSDUnited States7548.3 811.2 177.3 21.9%1.0x4.7x 1,469UOMO Media, Inc1/31/2009UOMOOTCBBUSDCanada0.3328.3 0.6 (0.5)-78.2%45.0x- NAValueClick Inc.3/31/2009VCLKNasdaqGSUSDUnited States10872.3 591.7 105.5 17.8%1.3x7.3x 1,189VOIS, Inc.12/31/2008VOISOTCBBUSDUnited States0.907.5 0.0 (1.3)NM-- 4Webzen Inc.3/31/2009WZENNasdaqGMUSDSouth Korea553.8 23.1 (0.4)-1.9%-- 314Wizzard Software Corporation12/31/2008WZEAMEXUSDUnited States0.5727.2 6.1 (6.0)-98.2%4.5x- 110Worlds.com Inc.12/31/2008WDDDOTCBBUSDUnited States07.9 0.1 (0.7)NM-- 1Wyndstorm CorporationNAWYNDOTCBBUSDUnited States0.519.2 NA NM NM-- NAXING AG3/31/2009O1BC XTRAEURGermany33240.4 53.0 16.5 31.2%3.6x11.4x 239YedangOnline Corp.12/31/2007A052770KOSEKRWSouth Korea10,800.00136.0 55.0 12.3 22.4%2.5x11.0x NAYnk Korea Inc.12/31/2007A023770KOSEKRWSouth Korea7,91015.6 15.6 (1.2)-7.6%1.0x- NAZipLocal Inc.12/31/2008TSXV:ZIPTSXVCADCanada0.010.7 2.9 (3.1)NM0.7x- NAHigh18,192.61,796.0577.465.0%46.8x34.1x6,194Low0.00.0-15.7-98.9%0.0x0.3x1
Average530.5151.934.68.7%5.4x9.3x664
Median52.954.30.917.1%1.8x8.6x238
 
Figure 1. Web 2.0 Universe Summary Source. Capital IQ 
 
 Page 3
CAPITAL MARKETS ACTIVITY (M&A AND FINANCING)
Financing activity in May lags:
Month-to-date financings in May totalled $106.6 million, led by the $20 million One Netfinancing. So far, there have been 18 financings in May, with 10 deals greater than $5 million and only five less than $5million. There have been two financings greater than $10 million (Cyberplex and One Net), with the capital raises byImeem and EveryZing close behind at $8.8 million and $8.3 million, respectively. The average value thus far in May is $5.9million, slightly below the average value for April of $6.5 million on 21 financings. The March average was $6.6 million on24 financings. Except for two deals (Kaixin001.com and Collective Media), all were below $20 million for the last threemonths and a total of four deals were greater than or equal to $15 million.
Financing Activity Last Three Months
0.020.040.060.080.0100.0120.0140.0160.0180.0Mar-09Apr-09May-09
   (   U   S   $  m   )
0.01.02.03.04.05.06.07.0
   (   U   S   $  m   )
TotalAverage
 
Figure 2. Financings, Last Three Months Source. Company reports 
One Net’s $20 million financing is largest deal in May:
One Net announced a $20 million financing last week, the largestdeal so far in May. Ten of the 18 deals in the month are equal to or greater than $5 million. For additional details, seeFigures 23 and 24 (at end of note). Also note that the spin-off of StumbleUpon from E-bay on a $29 million valuationoccurred in May. E-bay had bought StumbleUpon for $75 million.

You're Reading a Free Preview

Download
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->