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SOFTWARE & SERVICES 1 SEPTEMBER 2009

WEB 2.O WEEKLY DAVID SHORE, CFA, MBA 416.860.6784
david.shore@researchcapital.com

FINANCING ACTIVITY PICKING UP AS WE HEAD INTO THE FALL?
A VE R AG E D E AL SI Z E I N CR E A S E S I N A UG U ST
The month of August saw 24 financings totalling $200.6 million, well above the $82.3 million raised with only eight
transactions the prior year. The average deal size of $8.4 million is also up sharply from $5.6 million in July and just
$4.9 million in June. In addition, two significant acquisitions (Friends Reunited and iLike) were announced for a total
of $62 million. From a sector perspective, over the last three months, Advertising related companies continue to be
the top destination for capital, closely followed by Social Networks.

Financing Activity Last Twelve Months

400.0 18.0

16.2

16.0
350.0
14.6

14.0
300.0

12.0
250.0
10.3
9.7
10.0
(US$m)

(US$m)
200.0 8.4

8.0
7.0 7.0 7.1
6.5 6.6
150.0 6.2
5.6 6.0
4.9

100.0
4.0

50.0
2.0

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

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

August closes at $200.6 million on 24 transactions: Total capital raised in August was $200.6 million through 24
transactions, averaging $8.4 million per transaction. In August, online gaming company Turbine secured the largest
financing transaction ($50 million). Friends Reunited was the largest acquisition in the month – selling for $42 million.

Weak price performance: Most of the companies in our universe had negative stock price performances over the
past week (for stocks with prices greater than $1) (Figure 12), with 32 companies showing negative returns on the
week. Frogster (FRG-XTRA) led the group with a 13.4% return, while Gravity Co. (GRVY-NASDAQGM) had the worst
return, dropping 31.0% in the 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.
w w w . r e s e a rc h c a p i t a l . c o m
T o ro n t o 4 1 6 . 8 6 0 . 7 6 0 0 Montreal 514.399.1500 Vancouver 604.662.1800 Calgary 403.265.7400 Regina 306.566.7550
Page 2

THE WEB 2.0 UNIVERSE
Ninety-one public Web 2.0 companies: Our W eb 2.0 universe contains 91 companies, with a combined market cap of
~$63 billion (Figure 1). The median market cap for the group is ~$68 million, with average trailing revenue of ~$160
million (median $58 million). The companies are also generally profitable, with a median EBITDA margin of 13.1%. On a
valuation basis, the overall average is 5.3x trailing revenue (median 1.9x) and 12.4x trailing EBITDA (median 9.8x).
Nineteen of the companies have more than 500 employees.
C omparable C ompany Analys is > Web 2.0
Trading C urrent US D Market US D L TM Total US D L TM Total E B ITDA TE V/L TM TE V/L TM
C ompany Name L TM as of Ticker E xc hange C urrency HQ P rice C ap ($m) R ev ($m) E B ITDA ($m) % R evenue E B ITDA E mployees
Accelerize New Media , Inc. 6/30/2009 AC LZ OT C B B US D United S ta tes 0. 57 15. 8 4. 4 (3.7) -83. 3% 4. 7x - 11
Actoz S oft C o. , Ltd. 6/30/2009 A052790 K OS E KR W S outh K orea 18,950 131. 2 104.2 24. 8 23. 8% 1. 0x 4. 0x NA
AQ Interactive, Inc. 6/30/2009 3838 TS E JPY J a pan 50,000 29. 3 63. 7 (1.9) -2.9% 0. 1x - NA
As s ociated Media Holdings Inc. 6/30/2007 AS MH OT C P K US D United S ta tes 0. 01 0.6 0. 1 (2.3) NM 15.6x - 3
B igs tring C orp. 6/30/2009 BS GC OT C B B US D United S ta tes 0. 02 1.4 0. 1 (1.5) NM 39.4x - 4
B eta wave C orporation 6/30/2009 B W AV OT C B B US D United S ta tes 0. 08 2.3 9. 4 (12. 6) NM - - 51
B eyond C ommerce, Inc. 6/30/2009 B Y OC OT C B B US D United S ta tes 0. 17 7.9 11. 7 (12. 8) NM 1. 2x - 43
B right T hings plc 9/30/2008 AIM: B G T AIM GBP United K ingdom 0. 01 4.6 0. 3 (1.8) NM 17.0x - 9
B roa dW ebAs ia Inc. 9/30/2008 BWBA OT C P K US D United S ta tes 0. 23 19. 5 0. 0 (4.6) NM - - 46
C DC C orp. 6/30/2009 C HIN. A Na s daqG S US D Hong K ong 2. 35 249. 1 361.6 25. 1 6.9% 0. 7x 9. 7x 2, 227
C hangyou. com L imited 6/30/2009 C Y OU Na s daqG S US D C hina 37. 76 2,076. 8 241.2 147.2 61. 0% 7. 5x 12. 2x 628
C hina G a teway C orporation 9/30/2008 CGWY OT C P K US D United S ta tes 0. 02 0.3 6. 7 (6.6) -98. 9% 0. 0x - 37
C hines e G amer Interna tiona l 3/31/2009 G T S M: 3083 GTS M TWD T aiwa n 406 1,038. 2 56. 2 31. 5 56. 0% 17.3x 30. 9x NA
C LIC K E R Inc. 5/31/2009 C LK Z OT C B B US D United S ta tes 0. 00 0.4 2. 5 (1.2) -45. 8% 0. 2x - 22
C ornerW orld C orpora tion 4/30/2009 CWR L OT C B B US D United S ta tes 0. 06 5.3 3. 9 NM NM 4. 0x - NA
C yberplex Inc. 6/30/2009 T S X :C X TS X C AD C anada 1 82. 4 88. 9 9.6 10. 8% 0. 7x 6. 5x NA
DADA S pA 6/30/2009 C M: DA CM E UR Italy 6. 47 150. 4 236.9 31. 1 13. 1% 0. 8x 6. 4x NA
DXN Holdings B hd 5/31/2009 DX N K LS E MY R Ma la ys ia 0. 55 35. 8 76. 1 11. 0 14. 4% 0. 7x 4. 6x NA
Dibz International, Inc. NA DIB Z OT C P K US D United S ta tes 0. 00 0.0 NA NM NM - - NA
DigitalP os t Interactive, Inc. 6/30/2009 DG LP OT C B B US D United S ta tes 0. 05 3.9 1. 0 (1.4) NM 5. 9x - 7
DigitalT own, Inc. 5/31/2009 DG T W OT C B B US D United S ta tes 1. 51 41. 3 NM (2.5) NM - - 3
Dolphin Digital Media , Inc. 6/30/2009 DP DM OT C B B US D United S ta tes 0. 43 23. 1 0. 6 (3.4) NM 41.4x - NA
E olith C o. Ltd. 12/31/2008 A041060 K OS E KR W S outh K orea 935 54. 4 14. 8 (3.5) -23. 6% 3. 8x - NA
E xtens ions , Inc. 6/30/2009 E XT I OT C P K US D United S ta tes 0. 20 8.9 NM NM NM - - 2
F luid Mus ic C a nada , Inc. 6/30/2009 T S X :F MN TS X C AD United S ta tes 1. 40 66. 8 5. 3 (5.1) -95. 2% 11.4x - NA
F rogs ter Interactive P ictures AG 12/31/2008 FRG XT R A E UR G ermany 18. 99 68. 8 3. 3 (6.3) NM 20.4x - NA
G ama nia Digita l E ntertainment C o., Ltd. 6/30/2009 6180 GTS M TWD T aiwa n 50. 40 232. 7 138.7 24. 5 17. 7% 1. 5x 8. 6x NA
G ameOn C o Ltd. 6/30/2009 3812 TS E JPY J a pan 103,400 107. 7 78. 9 19. 3 24. 5% 0. 4x 1. 8x NA
G eoS entric O yj 6/30/2009 G E O 1V HL S E E UR F inland 0. 05 64. 4 5. 3 (17. 1) NM 12.1x - 115
G iant Interactive G roup, Inc. 6/30/2009 GA NY S E US D C hina 8 1,709. 6 198.5 124.1 62. 5% - - 1, 570
G iga Media Ltd. 3/31/2009 G IG M Na s daqG S US D T aiwa n 4. 72 257. 3 183.6 NM NM 1. 0x - 751
G ravity C o., Ltd 6/30/2009 GR VY Na s daqG M US D S outh K orea 1. 65 45. 9 47. 0 16. 0 33. 9% - - 469
G ree, Inc. 6/30/2009 T S E : 3632 TS E JPY J a pan 8,270 1,993. 9 150.2 90. 3 60. 1% 12.5x 20. 8x NA
G ungHo O nline E ntertainment, Inc. 6/30/2009 3765 OS E JPY J a pan 235,500 290. 6 115.1 25. 6 22. 2% 2. 2x 10. 1x NA
HanbitS oft, Inc. 6/30/2009 A047080 K OS E KR W S outh K orea 3,975 69. 9 58. 2 1.4 2.3% 1. 0x 42. 0x NA
IAC /InterActiveC orp. 6/30/2009 IAC I Na s daqG S US D United S ta tes 18. 52 2,452. 1 1, 392. 3 52. 7 3.8% 0. 5x 13. 5x 3, 200
IAS E nergy, Inc. 1/31/2009 IAS A. E OT C B B US D C anada 0. 13 9.1 0. 0 (0.8) NM - - NA
is eemedia Inc. 3/31/2009 IE E T S XV C AD C anada 0. 05 2.3 1. 5 (5.0) NM 0. 9x - NA
J umbuck E nterta inment P ty Ltd. 6/30/2009 AS X :J MB AS X AUD Aus tralia 0. 37 15. 2 16. 2 6.9 42. 8% 0. 6x 1. 3x NA
K AB Dis tribution Inc. 6/30/2009 T S X :K AB TS X C AD C anada 1 81. 5 67. 1 3.9 5.8% - - NA
K ings oft C o. Ltd. 6/30/2009 3888 S E HK HK D C hina 8 1,177. 6 139.1 61. 4 44. 2% 8. 6x 19. 4x 2, 271
Lingo Media C orporation 3/31/2009 T S X V :LM T S XV C AD C anada 1. 10 12. 5 0. 9 (1.6) NM 12.1x - NA
LiveW orld Inc. 6/30/2009 LVW D OT C P K US D United S ta tes 0. 05 1.5 10. 6 (0.1) -1.2% 0. 0x - NA
LookS mart, Ltd. 6/30/2009 L OO K Na s daqG M US D United S ta tes 1. 19 20. 4 56. 8 (4.4) -7.8% - - 90
Magnitude Information S ys tems Inc. 6/30/2009 MAG Y OT C B B US D United S ta tes 0. 01 4.5 0. 1 (2.5) NM - - 14
Mixi, Inc. 6/30/2009 2121 TS E JPY J a pan 599000. 00 994. 1 131.7 44. 5 33. 8% 6. 7x 19. 7x NA
Modern T imes G roup Mtg AB 6/30/2009 MT G B OM SEK S weden 290. 00 2,683. 9 1, 927. 9 296.2 15. 4% 1. 7x 11. 0x 2, 969
MO K O .mobi Limited 12/31/2008 MK B AS X AUD Aus tralia 0. 08 5.5 1. 2 (2.5) NM 3. 5x - NA
Myriad G roup AG 12/31/2008 MY R N SWX C HF S witzerland 4. 31 86. 8 40. 0 0.8 1.9% 2. 4x - 405
NE O W IZ G ames C orpora tion 12/31/2008 A095660 K OS E KR W S outh K orea 31950. 00 539. 7 198.7 53. 3 26. 8% 2. 7x 9. 9x NA
NetDragon W ebS oft, Inc. 6/30/2009 777 S E HK HK D C hina 6 395. 5 89. 3 30. 0 33. 6% 2. 9x 8. 6x 2, 426
Neteas e. com Inc. 6/30/2009 NT E S Na s daqG S US D C hina 41. 99 5,434. 6 472.3 297.4 63. 0% - - 3, 109
NeuLion Incorporated 6/30/2009 T S X :NLN TS X C AD C anada 1. 11 115. 2 21. 5 (13. 0) -60. 3% 5. 1x - 237
NeXplore C orporation 6/30/2008 NX P C OT C P K US D United S ta tes 1 31. 2 0. 7 (6.2) NM - - NA
Ngi G roup Inc. 6/30/2009 2497 TS E JPY J a pan 30200. 00 40. 3 89. 6 6.6 7.4% - - NA
Northgate T echnologies L imited 6/30/2009 590057 BSE INR India 40. 40 28. 8 81. 2 (40. 6) -50. 0% 0. 4x - NA
O pen T ext C orp. 6/30/2009 OT E X Na s daqG S US D C anada 35. 17 1,974. 8 785.7 205.1 26. 1% 2. 5x 9. 8x 3, 411
O penwave S ys tems Inc. 6/30/2009 OP W V Na s daqG S US D United S ta tes 2. 77 230. 8 191.7 5.3 2.8% 0. 6x 22. 9x NA
P erfect W orld C o. , Ltd. 6/30/2009 PWRD Na s daqG S US D C hina 38. 15 1,876. 3 255.6 142.2 55. 6% 0. 5x 0. 9x 2, 096
P NI Digital Media Inc. 6/30/2009 T S X V :P N T S XV C AD C anada 1. 80 56. 0 20. 8 2.3 11. 0% 2. 6x 23. 6x NA
Q uepa s a C orp. 6/30/2009 QP S A OT C B B US D United S ta tes 1 17. 8 0. 2 (10. 6) NM - - 74
O AO R B C Information S ys tems 12/31/2007 R BCI R TS US D R us s ia 1. 05 145. 7 148.9 19. 5 13. 1% 0. 0x 0. 2x NA
S handa Interactive E nterta inment Ltd. 3/31/2009 S NDA Na s daqG S US D C hina 48. 94 3,267. 6 570.4 261.0 45. 8% - - 3, 124
S hutterfly, Inc. 6/30/2009 S FLY Na s daqG S US D United S ta tes 14. 46 368. 1 218.6 27. 3 12. 5% 1. 4x 11. 1x 514
S K C ommunications C o., Ltd. 12/31/2008 A066270 K OS E KR W S outh K orea 9300. 00 312. 8 184.7 12. 0 6.5% 1. 7x 26. 0x NA
S NAP Interactive, Inc. 6/30/2009 S TVI OT C B B US D United S ta tes 1 5.4 3. 5 0.9 27. 0% 1. 1x 4. 0x 11
S NM G loba l Holdings 9/30/2008 S NMN OT C P K US D United S ta tes 0. 01 0.0 2. 0 (0.7) -34. 8% 1. 1x - 33
S ocial Media V enures , Inc. 12/31/2008 S MV I OT C P K US D United S ta tes 0 0.0 0. 1 (0.1) -60. 6% 4. 5x - NA
S ocialwis e, Inc. 6/30/2009 S C LW OT C B B US D United S ta tes 0. 62 27. 4 0. 0 (5.6) NM - - NA
S ohu. com Inc. 6/30/2009 S O HU Na s daqG S US D C hina 61. 02 2,339. 1 485.1 209.6 43. 2% 3. 8x 8. 7x 3, 197
S park Networks , Inc. 6/30/2009 L OV AME X US D United S ta tes 2 48. 8 50. 5 10. 8 21. 3% 0. 9x 4. 4x 183
S pectrumDNA, Inc. 6/30/2009 S P XA OT C B B US D United S ta tes 0 10. 7 0. 1 (2.5) NM - - 7
T encent Holdings Ltd. 6/30/2009 700 S E HK HK D C hina 115 26, 993.3 1, 391. 3 680.2 48. 9% 21.2x 43. 4x 6, 194
T he P arent C ompany 8/2/2008 K IDS . Q OT C P K US D United S ta tes 0. 01 0.3 112.0 (13. 5) -12. 0% 0. 2x - 347
T he9 Limited 12/31/2008 NC T Y Na s daqG S US D C hina 7. 50 188. 2 250.5 85. 4 34. 1% - - 1, 626
T heS treet. com, Inc. 3/31/2009 TS CM Na s daqG M US D United S ta tes 2. 50 76. 5 67. 0 1.9 2.9% 0. 2x 6. 2x 310
T ota l S port O nline AS 3/31/2006 T OS O O T C NO NO K Norway 0. 03 0.1 2. 2 (1.1) -50. 6% 4. 6x - 16
T ree.C om, Inc. 6/30/2009 TR E E Na s daqG M US D United S ta tes 7. 09 76. 6 216.6 (0.7) -0.3% 0. 4x - 700
Unis erve C ommunica tions C orp. 2/28/2009 T S X V :US S T S XV C AD C anada 0. 05 1.0 23. 7 0.1 0.2% 0. 2x - NA
United O nline Inc. 6/30/2009 UNT D Na s daqG S US D United S ta tes 6. 99 586. 0 949.8 203.2 21. 4% 0. 9x 4. 2x 1, 469
UOMO Media, Inc 4/30/2009 UO MO OT C B B US D C anada 0 13. 7 0. 9 (0.5) -53. 2% 16.4x - NA
V alueC lick Inc. 6/30/2009 V C LK Na s daqG S US D United S ta tes 10 893. 3 563.6 99. 0 17. 6% 1. 3x 7. 7x 1, 189
V OIS , Inc. 6/30/2009 V O IS OT C B B US D United S ta tes 0 5.0 0. 0 (1.0) NM - - 4
W ebzen Inc. 6/30/2009 W ZE N Na s daqG M US D S outh K orea 2. 84 33. 7 22. 2 2.2 9.9% - - NA
W izzard S oftwa re C orporation 6/30/2009 W ZE AME X US D United S ta tes 0. 48 24. 2 5. 3 (4.5) -84. 9% 4. 7x - 110
W orlds . com Inc. 6/30/2009 W DDD OT C B B US D United S ta tes 0. 12 6.3 0. 1 (0.7) NM - - 1
W oozyF ly, Inc. 6/30/2009 W ZY F OT C B B US D United S ta tes 0. 15 2.6 NM NM NM - - NA
W ynds torm C orpora tion NA W Y ND OT C P K US D United S ta tes 0. 10 1.8 NA NM NM - - NA
XING AG 6/30/2009 O 1B C XT R A E UR G ermany 29. 50 223. 0 57. 6 16. 6 28. 8% 3. 0x 10. 3x 174
Y eda ngO nline C orp. 12/31/2007 A052770 K OS E KR W S outh K orea 8,900 107. 1 55. 0 11. 9 21. 6% 2. 1x 9. 8x NA
Y nk K orea Inc. 12/31/2008 A023770 K OS E KR W S outh K orea 4,160 17. 8 11. 4 1.2 10. 5% - - NA
High 26, 993.3 1,927. 9 680. 2 63. 0% 41.4x 43. 4x 6, 194
Low 0.0 0. 0 -40.6 -98. 9% 0. 0x 0. 2x 1
Average 699.3 160.5 38.4 6.0% 5.3x 12.4x 929
Median 67. 8 57.6 2. 2 13. 1% 1. 9x 9. 8x 437

Figure 1. Web 2.0 Universe Summary
Source. Capital IQ
Page 3

C A P I T A L M A R K E T S A C T I V I T Y (M & A A N D F I N A N C I N G )
August closes at $200.6 million: Total capital raised in August was $200.6 million through 24 transactions, averaging
$8.4 million per transaction In August, online gaming company Turbine secured the largest financing transaction ($50
million). Friends Reunited was the largest acquisition in the month – selling for $42 million. July closed with $190.2 million
in financing on 34 transactions ($5.6 million average). The averages for the months of May (excluding the Facebook
transaction) and June were $6.6 million and $4.9 million, respectively.

Financing Activity Last Twelve Months

400.0 18.0

16.2

16.0
350.0
14.6

14.0
300.0

12.0
250.0
10.3
9.7
10.0
(US$m)

(US$m)
200.0 8.4

8.0
7.0 7.0 7.1
6.5 6.6
150.0 6.2
5.6 6.0
4.9

100.0
4.0

50.0
2.0

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

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

Figure 2. Financings, Last Twelve Months
Source. Company reports
(US$m)

0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
People Media
Super Rewards
Turbine
Friends Reunited

Source. Company reports
AdLink Internet Media
Pandora Media
Smith & Tinker
iLike
xoopit
MediaMath
Edo Interactive
Sugar Inc.
Kontera Ltd.
Ning
Tumri
Mint
Boku
RichRelevance
QuickPlay Media

Figure 3. Capital Market Activity, Last Three Months
Grab Networks
Wimba
Traffiq
AdChina
Causes
Goojet SAS
Bill.com
Outspark
ConnectEdu
Acquia, Inc
beeTV
AdMeld Inc.
SBNation
InnoCentive
OneRiot
Balihoo
blueKiwi Software SA
Nokeena
Metaversum
iMemories
Zoosk
Boxee
Bubble Motion
Invodo
Sense Networks
Polyvore
MOG
Gather
Taomee
MojoPages
Jambool
Animoto
Quikr India Pvt. Ltd.
GameGround
StyleCaster
OPEN Sports network
Nexage
RingRevenue
TweetDeck
OurStage
Z2Live
KODA
Crowdcast
YuMe
Scoreloop
eRepublik
Busca
ClickFuel
Newser LLC
Akademos
ProtonMedia
Inigral
AdEx Media
Roblox
GROU.PS
Financing & M/A Summary - Last Three Months

Yapta
iSocket
OneTXT
iLoop Mobile
my6sense
Tremor Media
million round. For additional details on financings, see Figures 29 and 30 (at end of note).

I Love Rewards
Comunitae
Cliqset
Lat49
Aloqa
ChessCube
Tributes.com
CoTweet
AdWhirl
LiquidPlanner
Cellufun
Picaboo
Clikthrough
TodaCell
Glubble
Cognitive Match
MashLogic
BookFresh
Linksify
People Capital
iSyndica
Masher Media
Gigpark
Jaxtr
Jul-09
Jun-09
Aug-09
Page 4

was acquired by ITV for $42 million. On the capital raise front, Turbine had the largest raise in August, securing a $50
Turbine raises $50 million and Friends Reunited is acquired for $42 million: On the acquisition front, Friends Reunited
Page 5

Advertising remains the most active sector in dollars raised and number of transactions: Following recent trends,
Advertising companies (as a sector) had the most activity in dollars raised ($135.4 million) and number of transactions
(15) (Figure 4). Social Networks was the next most active sector with $105.7 million raised and 14 transactions.

Capital Market Activity by Sector - Last Three Months

160.0

140.0

120.0

100.0
(US$m)

80.0

135.4
60.0
105.7
93.2
40.0 80.0
69.9
64.0 63.5

20.0 34.6
24.3 24.0 22.3 19.3 19.1
13.0 12.5 12.0 12.0 10.7 7.3 5.0 4.1 3.2 3.0
0.0 1.0 1.0 0.5 0.5 0.0
Comment/Reputation
Mobile Payment
Communities
Gaming

Online Dating

Online Calendar
Mobile

Enterprise

Media

Microblog

Online Lending
Collaboration

Online Learning

Publishing
Music
Infrastructure

Blog

Search

Classified

Mobile Ad

SMS/Voice
Social Networks

Virtual Goods
Advertising

Virtual World

Video

Crowdsourced

Analytics
Vertical

Content
# companies
15 14 8 1 5 10 5 6 5 2 7 3 4 1 1 2 2 2 1 1 1 1 2 1 1 1 1 0

Figure 4. Capital Market Activity, by Sector, Last Three Months
Source. Company reports
Page 6

Average round size flattens: On a trailing 12-month basis, total financing dollars increased as of August 2009, with
average round sizes flattening (Figure 5).

LTM Financing

4,500.0 18.0

4,000.0 16.0

3,500.0 14.0

3,000.0 12.0

2,500.0 10.0
(US$m)

(US$m)
`
2,000.0 8.0

1,500.0 6.0

1,000.0 4.0

500.0 2.0

0.0 0.0
May-05

May-06

May-07

May-08

May-09
Mar-05

Nov-05

Mar-06

Nov-06

Mar-07

Nov-07

Mar-08

Nov-08

Mar-09
Jan-05

Jul-05

Sep-05

Jan-06

Jul-06

Sep-06

Jan-07

Jul-07

Sep-07

Jan-08

Jul-08

Sep-08

Jan-09

Jul-09
Total Average

Figure 5. Financings, Last 12 Months
Source. Company reports
Page 7

Cumulative total almost $8.0 billion: Overall, on a cumulative basis, W eb 2.0 financings have totalled over $7.8 billion,
with the majority of the financing coming in late 2007 and the first three quarters of 2008 (Figure 6). Financing for the
second quarter of 2009 passed that raised in the first quarter of 2009 – the second straight quarter of increased
investments. However, for the period ended Q2/CY09, total capital raised was below the Q2/CY08 level. W ith two months
finished in Q3, the total raised is $387.7 million.

Web 2.0 Financing (cumulative)

1,600.0 9,000.0

1,404.4
1,400.0 8,000.0

7,000.0
1,200.0

1,007.6 6,000.0
1,000.0
888.2
5,000.0
(US$m)

(US$m)
800.0
705.5
4,000.0
595.2 613.8
600.0
3,000.0
422.2
372.3 387.7
400.0
2,000.0
218.0
163.4 177.3197.6
200.0 143.9151.1 1,000.0
88.3 73.5
59.4
41.5 24.7 33.5 52.2 43.3
0.0 0.0
Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3
2004 2005 2006 2007 2008 2009

Figure 6. Financing, Cumulative
Source. Company reports
Page 8

U.S. remains dominant: U.S. companies continue to dominate capital market activity – with 78.7% of financings/M&A in
the last twelve months involving U.S. companies (based on dollars) (Figure 7). Based on number of transactions, the U.S.
leads with 74.8% of deals, while Canada and the UK were a distant second with a 4.3% share of the total number of
financings (Figure 8).

Financing/M&A by Country - LTM ($) Financing/M&A by Country - LTM (#)
UK Canada
UK
4.3% Israel
4.2% 4.3%
Canada 3.7%
4.2% France
Israel 2.8%
2.9%
France
2.7%

China ROW
2.3% 10.2%

Germany
2.0%

ROW
2.9%

USA
78.7%
USA
74.8%

Figures 7 & 8. Financing/M&A, by Country (LTM, $, #)
Source. Company reports

Early-stage funding continues to dominate (by count): Almost half of financings in the last 12 months are for early-
stage companies (Angel/Seed or Series A) (Figure 9). Series B rounds are 26.6% of the total, with later-stage (Series D, E
and PIPE) deals accounting for just 7.9%.

Financing by Type - LTM

Series C
14.9%
Series B
26.6%

Series D
4.4%

Series E
0.9%

Series A
28.5%

Angel/Seed
20.3%

Debt financing
PIPE 1.9%
2.5%

Figure 9 Financing, by Type (LTM, #)
Source. Company reports
Page 9

Equity financings smaller over last 12 months: In the last 12 months, the average size of Series A, B, C, and D rounds
has all been lower than the overall average (Figure 10). Angel rounds continue to be in the $3 million range.

Average financing round size

40.0

35.0 33.7

30.0
27.4
26.3

25.0
22.7
(US$m)

20.0

15.0
12.5

10.6 10.8 10.8

10.0
7.5 7.7 8.0
6.3 6.5
5.3
5.0
3.4 3.3

0.0
Angel/Seed Debt financing PIPE Series A Series B Series C Series D Series E

LTM Average Size Overall Average

Figure 10. Average Size per Round
Source. Company reports
Page 10

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) underperformed the NASDAQ composite index
from mid-2008 until recently when it has moved sharply higher than the NASDAQ index (Figure 11).

Web 2.0 Index Price Performance
140

120

100

80

60

40

20

0
9/2/2008

9/16/2008

9/30/2008

10/14/2008

10/28/2008

11/11/2008

11/25/2008

12/9/2008

12/23/2008

1/6/2009

1/20/2009

2/3/2009

2/17/2009

3/3/2009

3/17/2009

3/31/2009

4/14/2009

4/28/2009

5/12/2009

5/26/2009

6/9/2009

6/23/2009

7/7/2009

7/21/2009

8/4/2009

8/18/2009
^COMP - Share Pricing Index: Web 2.0 (Market Cap)

Figure 11. Web 2.0 Price Performance
Source. Capital IQ
Page 11

Frogster leads; Gravity falls: Most of the companies in our universe had negative stock price performances over the
past week (for stocks with prices greater than $1) (Figure 12), with 32 companies showing negative returns on the week.
Frogster (FRG-XTRA) led the group with a 13.4% return, while Gravity Co. (GRVY-NASDAQGM) had the worst return,
dropping 31.0% in the week.

1 Week P rice P erformance
Frogs ter Interactive Pictures A G 13.4%
S park Netw orks , Inc. 10.4%
Eolith Co. Ltd. 8.7%
TheS treet.com, Inc. 8.2%
DigitalTow n, Inc. 7.9%
PNI Digital Media Inc. 7.8%
NEOWIZ G ames Corporation 7.8%
X ING A G 7.3%
Fluid Mus ic Canada, Inc. 6.1%
HanbitS oft, Inc. 4.7%
Y edangOnline Corp. 4.1%
Chines e G amer International 3.2%
Northgate Technologies Limited 2.5%
Y nk K orea Inc. 2.1%
DA DA S pA 1.4%
NeuLion Incorporated 0.9%
Webz en Inc. 0.7%
S handa Interactive Entertainment Ltd. 0.4%
G amania Digital Entertainment Co., Ltd. 0.2%
S K Communica tions Co., Ltd. -0.1%
G igaMedia Ltd. -0.2%
Neteas e.com Inc. -0.7%
A Q Interactive, Inc. -0.8%
Changy ou.com Limited -0.8%
A ctoz S oft Co., Ltd. -1.0%
G ameOn Co Ltd. -1.2%
L ingo Media Corporation -1.8%
Open Tex t Corp. -2.2%
Perf ect World Co., Ltd. -2.2%
Mix i, Inc. -2.4%
G iant Interactive G roup, Inc. -2.6%
IA C/InterA ctiveCorp. -2.7%
Openw ave S y s tems Inc. -3.1%
G ree, Inc. -3.2%
K ings oft Co. Ltd. -3.3%
Tencent Holdings Ltd. -3.9%
My riad G roup A G -4.2%
S hutterf ly , Inc. -4.6%
V alueClick Inc. -4.7%
S ohu.com Inc. -5.4%
United Online Inc. -5.5%
Modern Times G roup Mtg A B -6.5%
Quepas a Corp. -6.7%
Ngi G roup Inc. -6.8%
L ookS ma rt, Ltd. -7.0%
CDC Corp. -10.6%
The9 Limited -11.1%
NetDragon WebS oft, Inc. -12.7%
Cy berplex Inc. -13.1%
Tree.Com, Inc. -17.7%
G ravity Co., Ltd -31.0%
-35.0% -30.0% -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0%

Figure 12. 1-Week Price Performance
Source. Capital IQ
Page 12

INDUSTRY NEWS (PARTNERSHIPS, FINANCIAL RESULTS, NEW PRODUCTS)
K ey Developments
C ompany Headline Notes
MOK O.mobi Limited (AS X: MKB ) MO K O. mobi Limited S ec ures D eal on AT& # 38;T M obiles MO K O. mo bi Limited has s ecured a dea l for its M OK O M usic on s elected AT &T mobile handsets . T he C ha t & S ha re platform's new
development includes enha nc ed music community which ena bles us ers to s ea rch a nd dis c over, refer a nd buy, full-length trac ks , ring tones
a nd a ns wer tones from their mobile.
B eyond Commerc e, Inc . B eyond Commerce I nc. Appoi nts P aul W . Morris on to the B eyond Commerce Inc . a nnounc ed tha t P aul W . Morris on ha s been a ppointed to its boa rd of direc tors . M r. Morris on is the six th me mber of
(OT CB B: B Y OC) B oard of Directors the boa rd of di rectors of B ey ond C ommerc e, whic h als o includes R on L oveles s, M ich a el W ars insk e, B a rry F alk, M urra y W illia ms, and R obert
Mc Nulty. All are independent board members with the exceptions of Mr. W illiams and Mr. M cN ulty , C ha irma n of the B oa rd and C hief
E xec utiv e Offic er. P aul W . Morris on is currently the C hief E xecuti ve Officer a nd P resident of OmniR elia nt H oldings Inc .

IAC /InterAc tiveC orp. (Nas daqG S : IAC I) IAC /InterActiveC orp La unch of P roduction Compa ny, IAC /I nterA ctiveC orp. a nnounc ed the launc h of Notiona l, a video content c ompa ny born out of its enterta inment property CollegeH umor. com.
Notiona l; Appoints R i ck y V a n V een to H ea d N otiona l CollegeH umor's origina l video s have been viewed over 300 million times a nd its viewers wa tch 100 y ea rs worth of video content eac h month.
B uilding on this succ ess ful foundation the new production company will crea te programming of a ll genres for a ll demogra phic s , to be
distributed ac ross multiple media platforms, inc luding television. T he new endeavor wa s conceiv ed a s a n ex tens ion of CollegeH umor. co m's
industry-leading c ontent s ensi bility and production capabilities . B y building o n top of that ba s e, Notional hopes to bring the DN A of an
internet compa ny to an in terna tiona l producti on compa ny . B ut unlik e CollegeH umor's y oung ma le-focus ed a udie nce, N otional's content will
a ppeal to a much broa der bas e.

Notiona l will be headed by R ic ky V an V een, who will transition from hi s current role as E ditor-in-Chief of C ollegeH umor.

S ohu. c om Inc . (Nas daqG S : S OHU) S ohu.com I nc. P rovides R evenue G uida nc e for the Third S ohu.com I nc. provided revenue guidance for the third quarter of 2009. For the qua rter, the co mpa ny ex pects tota l revenues to be between
Quarter of 2009 $133.5 mi llion to $137. 5 million, with advertis ing rev enues of $49. 5 million to $51.5 million. B rand a dvertising revenues of $48 to $50 million.
T his implies a 10% to 15% qu arter-on-qua rter growth or a negative 3% to pos itive 1% y ear-on-yea r growth. T his will bring bra nd advertising
growth for the firs t qua rter-for the firs t three qua rters of 2009 to between 5% to 7% yea r-on-y ear. O nline games revenues of $67 mil lion to
$69 million. B efore deduc ting the s ha re of non-G AAP net income pertaining to the non-c ontrolling interest in C ha ngyou, the c ompa ny
estimates pro forma non-G AAP net income to be between $50 million to $52 mill ion, a s compared to $49 million for the s econd quarter as
mentioned a bove. After deduc ting the s ha re of non-G AAP net income pertaining to the non-controlling interes t in Changy ou, S ohu es tima tes
non-G AAP net income attributable to S ohu for the third qua rter of 2009 to be between $36 million to $38 million a nd non-G AAP fully diluted
earnings per s hare for the third qua rter of 2009 to be between $0. 92 to $0. 97. As s uming no new grants of s hare-based a wa rds , S ohu estima te

IAC /InterAc tiveC orp. (Nas daqG S : IAC I) B en S ilverma n to Join IAC /I nterActiveC orp. to H ead I ts B en S ilv erma n res igned to his job a s co-c ha irman of N B C E ntertainment a nd Universa l Movie S tudios to hea d a new v enture with B a rry
New V enture Diller's I AC /InterActiveCorp. focusing on produc ing and dis tributing multimedia content. I AC a nnounc ed that it is forming a new production
company led by S ilverma n tha t will look to bring a dv ertis ers into further into the dev elopment proces s on new media produc ts .

Neteas e. com Inc. (Nas daqG S : NT E S ) Netea se. c om I nc. R eports Online G a ming R ev enue Netea se. com Inc. reported online gaming rev enue res ults for the first quarter of 2009. For the quarter, the compa ny reported rev enue of C N Y
R es ults for the F irst Quarter of 2009 710 million, with a 12. 9% mark et s ha re.
DADA S pA (C M: DA) DAD A S pA R eports E a rnings R es ults for the F irst S ix DAD A S pA reported ea rnings res ults for the first s ix months of 2009. For the period, the company notched up rev enues of €76. 3 million,
Months of 2009 down from the €81.3 mill ion of the s a me period la s t year and net profits of €1. 1 million, down (from €8 million).
S handa Interactive E ntertainment L td. S handa I nteractive E ntertainment L td. R eports Online S handa I nterac tive E ntertainment L td. reports online gaming rev enue res ults for the first quarter of 2009. For the quarter, the company
(Nas daqG S : S NDA) G a ming R evenue R es ults for the F irs t Q ua rter of 2009 reported revenue of CN Y 1.08 billion, with a 19. 6% ma rk et sh are.

T enc en t Ho ldings Ltd. (S E H K: 700) T enc ent H oldings Ltd. R eports C hines e Online G aming T enc ent Holdin gs Ltd. reported Chines e online ga ming revenue res ults for the first qua rter of 2009. F or the qua rter, the company reported
R evenue R esul ts for the Firs t Quarter of 2009 revenue of C N Y 910 million, with a 13% increas e quarter on qua rter.

T he9 L imited (Nas daqG S :NC TY) T he9 Limited R eports Online G a ming R evenue R es ults T he9 Limi ted reported online gaming revenue results for the firs t qua rter of 2009. T he company reported tha t its firs t-qua rter rev enue
for th e F irst Quarter of 2009 decreas ed by 6% quarter on qua rter.
C hang yo u. c om L imited Changy ou.com Limited R eports Onl ine G a ming R evenu e Changy ou.com Limited reported online ga ming revenue res ults for the firs t qua rter of 2009. For the qua rter, the compa ny reported revenue of
(Nas daqG S : C YOU) R es ults for the F irst Quarter of 2009 CN Y 420 million.
G ian t Interactive G ro up, Inc . G ia nt I nterac tiv e G roup, Inc . (NY S E : G A) agreed to G ia nt Interac tiv e G roup, I nc . (NY S E : G A) agreed to ac quire 51% s tak e in X uela ng S oftware on J uly 27, 2009.
(NYS E : G A); Xuelang S oftw are a cquire 51% stake in X uela ng S oftwa re.
S ohu. c om Inc . (Nas daqG S : S OHU) S ohu.com I nc. R eports Una udited Cons olida ted F inancia l S ohu.com I nc. repo rted una udited Cons olida ted fina ncial res ults for the second qua rter a nd s ix mo nths ended June 30, 2009. F or the
R es ults for the S econd Q ua rter a nd S ix Months E nded quarter, the c ompany reported operating profit of $48. 5 million, inc ome before inc ome ta x expens e of $49. 9 million, income from c ontinuing
J une 30, 2009 opera tions of $41.9 mill ion, net inc ome of $42. 3 million a nd net inc ome attributable to company of $33. 5 million or $0. 79 diluted per s ha re on
total rev enues of $127. 1 million against operating profit o f $39.9 million, income before income tax ex pense of $40. 8 million, inc ome from
continuing operations of $40. 2 million, net income of $40.2 million and net income a ttributa ble to compa ny of $40. 2 million or $1. 02 dil uted
per s ha re on to tal revenues of $10 2.0 millio n for the s a me period a y ear a go . Non-G AAP net inc ome attributable to company for the s econd
quarter of 2009 was $38. 7 million or $0. 90 per diluted s hare a ga ins t N on-G AAP net income a ttributable to compa ny for the second qua rter of
2009 wa s $42.3 million or $1.07 per diluted sha re for the s a me period a y ear ago. T he compa ny reported opera ting profit was $55.1 million
a gainst opera ting profit was $42.0 million for the same period a yea r ago.

C hang yo u. c om L imited Changy ou.com Limited R eports U naudited C onsolidated Changy ou.com Limited una udited c onsoli dated reported unaudited ea rnings res ults for the s econd quarter ended J une 30, 2009. T otal
(Nas daqG S : C YOU) E a rnings R esults for the S econd Q ua rter E nded J une 30, revenues for the sec ond quarter of 2009 increa sed 8% qua rter-over-qua rter and 39% y ea r-over-year to $66. 6 million. Opera ting profit for the
2009 ; P rovides E arnings G uida nce for the T hird Quarter sec ond quarter of 2009 increa s ed 4% qua rter-over-qua rter and 42 % y ear-over-y ear to $39. 5 million. N on-G AAP opera ting profit for the
of 2009 sec ond quarter of 2009 increa s ed 17% quarter-ov er-quarter a nd 5 7% y ea r-over-y ea r to $45. 1 million. F or the sec ond qua rter of 2009, net
income increas ed 3% quarter-over-quarter a nd 9% y ea r-over-y ear to $ 34.5 millio n. Non-G AAP net income increa sed 17% quarter-ov er-
quarter and 24% ye ar-ov er-year to $40. 2 million. F ully diluted ea rnings per ADS were $0. 66, compared to $0.71 in the firs t quarter of 2009
a nd $0. 67 in the s econd quarter of 2008. N on-G AAP fully dilu ted earnings per A DS were $0.75, up from $0.72 in the firs t qua rter of 2009 and
$0.68 in the second quarter of 2008. Inc ome before inc ome ta x expens e was $40. 3 million against $27. 7 million a y ea r a go. Opera ting ca sh
flow for the qua rter wa s a net inflow of $33.7 mil lion.
Page 13

S pec trumDNA, Inc . (OTC BB :S PXA) New Y ork P ost and S pec trumDN A P artner to L aunc h S pectrumDN A I nc. has signed a contra ct with the N ew Y ork P os t to license its A ddictionary, a S aa S (softwa re-as-a-s ervice) user-generated
E xclusiv e New Y ork Addictionary dictiona ry tha t lets people c reate their own words and definitions . K nown for its eye-ca tching hea dlines , ground-brea king goss ip and pla y on
words , the New Y ork P ost rea ches nearly 5. 5 million online uni que us ers per month and is a natura l fit for the Addic tiona ry s oci a l media
a pplication. T he N ew Y ork Addic tiona ry will s erve as a n engine to inc reas e k ey metric s of us er engagement inc luding pa ge views , time spent
on s ite, frequency of vis its, viral and word-of-mouth distribution a nd premium a d a nd s ponsors hip inv entory. T he a pplic ation is s et to launc h
in Augus t and will pa ve the wa y for deriv ati ve products s uch a s greetin g c ards, ca lendars , games a nd book s featuring the top-ra ted words
created by the community a t ny post. com. T he N ew Y ork P os t Addictionary joins a network of s ocia l media c ommunities which inclu des
NB C 's 'T he O ffice' Addictiona ry, E ! E nterta i nment's Celebrity Addic tiona ry , C omedy C entra l's P olitica l Addic tiona ry , D ictionary. com's
Addictiona ry and FE AR net's H orror Addictionary.

DADA S pA (C M: DA) DAD A S pA R eports E a rnings R es ults for F irs t H a lf of DAD A S pA reported ea rnings before interes t, ta x, depreciation a nd a mortis a ti on (E B I T D A) fell to E UR 10.7 milli on from E U R 14.4 mi llion for
2009; R ea ffirms E arnings O utlook for F ull Y ear 2009 firs t half of 2009. T he earnings before interest a nd ta x (E B IT ) went down to E UR 4 million from E U R 10. 4 million. T he group's net fina nc ia l
debt stood a t E UR 33. 1 million a t end-J une 2009 agains t E UR 31. 4 million a t end-D ecember 2008 and E UR 35. 2 million at end-Ma rc h 2009.

F or the full y ea r 2009, the c ompany rea ffirmed its ea rnings outlook. F or the yea r, the company expec ts a rev enue of E UR 160 mil lion. In
cas e of cons olida tion of D a da E nterta i nment as of J anua ry 1, 2009, the revenue is expec ted to rea ch some E UR 175 mill ion.

C hang yo u. c om L imited Changy ou.com Limited to R elea s e D uke of Mount Deer in Changy ou.com Limited a nnounc ed that it expl a ins why it decided to postpone the release of D uke of Mount D eer (D MD ). P reviously , the
(Nas daqG S : C YOU) 2010 company pla nned to release DM D in the fourth quarter of 2009. However, beca us e of bitterer competition in the ma rket a nd the necess ity to
enrich the ga me's content, Changy ou.c om dec ided to ex tend its R &D to 35 months and releas e the game in the third quarter of 2010.
B esides , C ha ngyou. com will promote a s equel of B l ade O nline (B O ), a 2.5D online fi ghting ga me, in the third qua rter of 2009, a nd Immortal
F aith (I F ), a licensed 2D M MO R P G bas ed on a nc ient Chines e my ths and folk tales , in the fourth qua rter. A new expans ion pa ck of T ian L ong
B a B u (TL B B ) will als o be la unched in the fourth qua rter and the compa ny is preparing for a n open beta test of the game's E uropean version.

B urs t Media Corporation (AIM:B R S T); Cy berplex Inc. (T S X: C X ) made an offer to a cquire B urs t Cy berplex Inc. (TS X : C X ) made an offer to a cquire B urs t Med ia C orpora tion (AIM : B R S T ) for approxima tely £10 million in c ash on July 29,
C yberplex Inc . (TS X: C X) Media C orporation (AIM : B R S T ) for a pproximately £10 2009. T he per s ha re cons ideration is £0. 12 repres enting a total equity v alue of approx imately $16. 5 million. T he B oard of D irectors of B urs t
million. Media rejected the proposa l despite subs tantia l support from B urs t s hareholders. T he proposal ha d the support of a pprox ima tely 40% of
B urst's sha res , or approximately 56% excluding sha res h eld by ma na gement of B urs t.

IAC /InterAc tiveC orp. (Nas daqG S : IAC I) IAC /InterActiveC orp. a nnounc es an E quity B uy ba ck T he B oa rd of Directors of IAC /I nterAc tiveC orp (N asdaqN M: I AC I) a uthoriz ed a s hare repurc ha se progra m on J uly 29, 2009. Under the
program, I AC will repurchase up to 20,000, 000 s hares of its outsta nding common s toc k . IAC ma y purchase s hares over an indefinite period
of time, depending on thos e fa ctors I AC management de ems relev ant a t a ny particula r time, i ncluding, without l imitation, mark et c onditions ,
sha re price, and future outlook . As of June 30, 2009, I AC had app rox imately $1. 9 billi on in cas h an d ma rketa ble sec urities , and $95.8 million
in long-term debt.
B eyond Commerc e, Inc . B eyond Commerce I nc. E le cts B oa rd of Directors B eyond Commerce Inc . a nnounc ed tha t Annua l S ha reholders M eeting wa s held on July 24, 2009. The meeting elected the members of the
(OT CB B: B Y OC) board of directors cons is ting of R obert J . M cN ulty , B arry F a lk, R onald L oveles s, M ich a el W ars insk e, and Murra y W illia ms.

IAC /InterAc tiveC orp. (Nas daqG S : IAC I) IAC /InterActiveC orp. R eports U naudited C onsolidated IAC /I nterA ctiveC orp. reported unaudited c onsoli dated ea rnings resul ts for the sec ond quarter and s ix months ended J une 30, 2009. F or the
E a rnings R esults for the S econd Q ua rter a nd S ix M onths quarter, the c ompany reported earnings from c ontinuing opera tion s of $42,593, 000, or $0.29 per di luted sha re, net ea rnings of $40, 397,000,
E nded J une 30, 2009 net earnings attributable to I AC s ha reholders of $40, 813,000, or $0. 28 per diluted s ha re, ea rnings from continuing opera tions b efore income
tax es of $64,736, 000, opera ting inc ome of $3, 907, 000 on revenue of $340, 045,000 compared to los s from continuing opera tions of
$84,636, 000, or $0.60 per diluted s ha re, net los s of $422, 081, 000, net loss a ttributa ble to I AC s ha reholders of $421,597, 000, or $3.02 per
diluted sha re, loss from c ontinuing operations before income taxes of $106, 910,000, opera ting loss of $6,434, 000 on rev enue of
$354,164, 000 for the same period las t yea r. The company reported a djus ted net inc ome of $3, 270,000, or $0. 02 per s ha re compa red to
a djusted net income of $25,500, 000, or $0.17 per s hare for the same period las t y ear.

F or the six months, the compa ny reported ea rnings from continuing opera tions of $12, 711,000, or $0.09 per diluted share, net earnings of $11
S hutterfly, Inc . (Nas daqG S : S FL Y) S hutterfly Inc . R ep orts U na udited C ons olidated E arnings S hutterfly I nc . reported una udited c onsolidated ea rnings results for the s econd quarter and s ix months ended J une 30, 2009. F or the quarter,
R es ults for the S econd Q ua rter a nd S ix Months E nded the compa ny reported net los s of $5, 655, 000 or $0.22 per bas ic and diluted s hare on net revenues of $38,858, 000 compared to net loss of
J une 30, 2009; P rov ides E a rnings G uidance for the Thi rd $4,017, 000 or $0. 16 per ba sic and diluted s hare on net revenues of $35, 447,000 for the s a me period a y ear ago. T he company reported los s
Q uarter and Full Y ear of 2009 from opera tions of $9, 408, 000 a nd loss before income ta x es of $9,152 ,000 compared to loss from operations of $7, 939,0 00 a nd loss be fore
income taxes of $7,284, 000 for the sa me period a yea r a go. Adjus ted E B I TD A wa s $0. 2 million, compa red to $0. 4 million in the second
quarter of 2008. O n a N on-G AAP basis , the compan y reported opera ting los s of $6,090, 000 a nd net los s of $3, 527,0 00 or $0.14 per diluted
sha re compa red to opera ting los s of $5, 394,000 a nd net loss of $2, 891, 000 or $0.12 per diluted share for the s ame period a y ea r a go. F ree
cas h flows was nega tive $2,735, 000 compared to free ca s h flows wa s negative $4,835, 000 for the s a me period a year a go. P urchases of
property a nd equipment were $1,826, 000 compared to purc ha s es of property a nd equipment of $3, 840,000 for the s ame period a y ear ago.

W izz ard S oftware Co rporation W izz ard M edia La unches S ec ond P hase of P odc ast W izza rd M edia announced the la unch of the much a nticipated s ec ond pha s e of its new podca st network monetiz ation strategy with the
(A ME X: WZE ) Monetization V ia Apps a pprova l of the Ha waii S urf S ess ion R eport App, the firs t W izz ard N etwork c ustomized P odca s t App currently for s a le through A pple's App
S tore. T he P odca s t App, developed by W iz zard Media , c an be c ustomized for a podca s t produc er in less tha n 30 minutes to inc lude bonus
ma teria l, s how extra s, interactive forms of communica tion between a udience a nd hos t, a s well a s other informa tion and entertainment.
W izza rd plans to offer its top 1, 000 podca st producers , bas ed on a udience s ize, a cus tomiz ed a pp; eventua lly opening this new produc t to
the thous a nds of podc as ts ac ross the W izz a rd N etwork. W iz zard will provide the P odc ast App a s a free tool to p odcas ters on the W iz za rd
Network a nd share in the revenue generated. All Apps submitted to the App S tore require App le approv al to be a vailabl e for s ale on a
worldwide ba s is a nd will generally rang e in price from $0.99 to $4. 99 ea ch.

Openwave S ys tems Inc . O penwa ve S y stems Inc. R eports U na udited C onsolida ted O penwa ve S y stems Inc. reported una udited cons olida ted earnings res ults for the fourth qua rter and y ear ended J une 30, 2009. F or the
(Nas daqG S : OPW V) E a rnings R esults for the F ourth Q uarter and Y ear E nded quarter, the c ompany reported net los s from continuing opera tions and net los s of $3, 444,000 or $0. 04 per bas ic and diluted sha re on tota l
J une 30, 2009 revenues of $47, 937, 000 compa re d to net los s from continuing opera ti ons of $18,051, 000 or $0. 21 per ba s ic a nd diluted share and net
income of $2,157, 000 or $0. 03 per ba sic a nd diluted s ha re on total revenues of $53,487, 000 for the same period a yea r ago. T he c ompany
reported operating los s from continuing operations of $2, 365, 000 a nd pre-tax los s from continuing operations of $2,537, 000 c ompared to
opera ting loss from continuing operations of $15, 881,000 a nd pre-tax los s from continuing opera tions of $16,532, 000 for the same perio d a
yea r ago. O n a Non -G AAP ba s is , the compa ny reported net loss of $278,000 compared to net los s of $1,90 4,000 for the s a me period a y ea r
a go. Net c as h provided by opera ting activities was $4,477, 000 a nd purc ha ses of property a nd equipment, net of $1, 161, 000 c ompared to net
cas h us ed in operating activities wa s $14, 390, 000 a nd purcha s es of property a nd equipment, net of $1, 296, 000 for the s ame period a y ea r a go.

Figure 13. Key Developments
Source. Capital IQ
Page 14

VALUATION
MMOG companies lead market-cap charts: Thirteen companies in our Web 2.0 universe top US$1 billion in market
capitalization (Figure 14). Fifty-seven of the 91 companies have market caps under US$100 million, with 26 under US$10
million. Online gaming companies dominate the top of the list, led by Tencent.

Market C ap (US D m)
Tencent Holdings Ltd. 26993.3
Neteas e. com Inc. 5434.6
S handa Interactive Entertainment Ltd. 3267.6
Modern Times G roup Mtg A B 2683.9
IA C/InterA ctiveCorp. 2452.1
S ohu.com Inc. 2339.1
Changy ou.com Limited 2076.8
G ree, Inc. 1993.9
Open Tex t Corp. 1974.8
Perfect World Co., Ltd. 1876.3
G iant Interactive G roup, Inc. 1709.6
K ings of t Co. Ltd. 1177.6
Chines e Gamer International 1038.2
Mix i, Inc. 994.1
V alueClick Inc. 893.3
United Online Inc. 586.0
NEOW IZ Games Corporation 539.7
NetDragon W ebS oft, Inc. 395.5
S hutterf ly , Inc. 368.1
S K Communications Co., Ltd. 312.8
G ungHo Online Entertainment, Inc. 290.6
G igaMedia Ltd. 257.3
CDC Corp. 249.1
G amania Digital Entertainment Co., 232.7
Openw ave S y s tems Inc. 230.8
XING A G 223.0
The9 Limited 188.2
DA DA S pA 150.4
OA O R B C Information S y s tems 145.7
A ctoz S of t Co., Ltd. 131.2
NeuLion Incorporated 115.2
G ameOn Co Ltd. 107.7
Y edangOnline Corp. 107.1
My riad G roup A G 86.8
Cy berplex Inc. 82.4
K A B Dis tribution Inc. 81.5
Tree.Com, Inc. 76.6
TheS treet.com, Inc. 76.5
HanbitS oft, Inc. 69.9
Frogs ter Interactive Pictures A G 68.8
Fluid Mus ic Canada, Inc. 66.8
G eoS entric Oy j 64.4
PNI Digital Media Inc. 56.0
Eolith Co. Ltd. 54.4
S park Netw orks , Inc. 48.8
Gravity Co., Ltd 45.9
DigitalTow n, Inc. 41.3
Ngi G roup Inc. 40.3
DXN Holdings B hd 35.8
Webz en Inc. 33.7
NeXplore Corporation 31.2
A Q Intera ctive, Inc. 29.3
Northgate Technologies Limited 28.8
S ocialw is e, Inc. 27.4
W iz z ard S oftw are Corporation 24.2
Dolphin Digital Media, Inc. 23.1
LookS mart, Ltd. 20.4
B roadW ebA s ia Inc. 19.5
Y nk K orea Inc. 17.8
Quepas a Corp. 17.8
A cceleriz e New Media, Inc. 15.8
J umbuck Entertainment Pty Ltd. 15.2
UOMO Media, Inc 13.7
Lingo Media Corporation 12.5
S pectrumDNA , Inc. 10.7
IA S Energy , Inc. 9.1
Ex tens ions , Inc. 8.9
B ey ond Commerce, Inc. 7.9
Worlds .com Inc. 6.3
MOK O.mobi Limited 5.5
S NA P Interac tive, Inc. 5.4
CornerWorld Corporation 5.3
V OIS , Inc. 5.0
B right Things plc 4.6
Magnitude Information S y s tems Inc. 4.5
DigitalPos t Interac tive, Inc. 3.9
Wooz y Fly , Inc. 2.6
B etaw ave Corporation 2.3
is eemedia Inc. 2.3
Wy nds torm Corporation 1.8
LiveWorld Inc. 1.5
B igs tring Corp. 1.4
Unis erve Communic ations Corp. 1.0
A s s ociated Media Holdings Inc. 0.6
CLICK ER Inc. 0.4
The Parent Company 0.3
China G atew ay Corporation 0.3
Total S port Online A S 0.1
S NM G lobal Holdings 0.0
Dibz International, Inc. 0.0
S ocial Media V enures , Inc. 0.0
0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000

Figure 14. Market Cap Ranking
Source. Capital IQ
Page 15

TEV/Revenue (LTM) averages 5.3x: The overall average TEV/Revenue (LTM) multiple for our group is 5.3x (up from 5.0x
last week) (Figure 15). However, this is skewed by two companies with multiples greater than 30x trailing revenue:
Bigstring Corporation (BSGC:OTCBB) at 39.4x and Dolphin Digital (OTCBB: DPDM) at 41.4x. The median is only 1.4x.
Note that we exclude multiples greater than 50x. Thirty-one companies have multiples under 1.5x

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

45. 0
41.4
39.4
40. 0

35. 0

30. 0

25. 0
21.2
20.4
20. 0 17.3
16.417.0
15.6
15. 0 12.5
11.4 12.112.1

10. 0 8.6
7.5
A v erage, 5. 3 5.9 6.7
4.54.6 4.7 4.7 5.1
5. 0 3.5 3.8 3.8 4.0
2.1 2.2 2.4 2.5 2.6 2.7 2.9 3.0
0.6 0.7 0.7 0.7 0.8 0.9 0.9 0.9 1.0 1.0 1.0 1.1 1.1 1.2 1.3 1.4 1.5 1.5 1.7 1.7
0.1 0.2 0.2 0.2 0.2 0.4 0.4 0.4 0.5 0.5 0.6
0. 0

N E O WIZ G ames C orporation

MO K O .mobi L imited

UO MO Media, Inc
C LIC K E R Inc.

J umbuck E nterta inment P ty L td.

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

G ungH o O nline E ntertainment, Inc.

P N I Digital Media Inc.

C hines e G amer Interna tional
U nis erve C ommunications C orp.

N orthgate T echnologies L imited

DXN Holdings B hd

C ha ngy ou.com L imited
T ree.C om, Inc.
G a meO n C o Ltd.

C DC C orp.

B ey ond C ommerc e, Inc.

S K C ommunica tions C o., Ltd.

DigitalP os t Intera ctive, Inc.

F luid Mus ic C a nada , Inc.

Dolphin Digital Media, Inc.
T he P a rent C ompany

Modern T imes G roup Mtg AB

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

NeuLion Inc orporated
C ornerWorld C orporation

Lingo Media C orporation
T heS treet.com, Inc .

United O nline Inc .

S NAP Intera ctive, Inc.

O pen T ex t C orp.
AQ Intera ctive, Inc .

IAC /InterAc tiveC orp.

C y berplex Inc .

is eemedia Inc .

S pa rk N etwork s , Inc .

G igaMedia Ltd.

V alueC lic k Inc .

NetDra gon WebS oft, Inc .
XIN G AG

S ohu.com Inc .
E olith C o. Ltd.

Mix i, Inc .

G ree, Inc .
As s ociated Media Holdings Inc .

F rogs ter Intera ctiv e P ic tures AG
T encent Holdings Ltd.
B right T hings plc
P erfect World C o., Ltd.

O penwave S y s tems Inc .

H anbitS oft, Inc .

Y nk K orea Inc .

Y edangO nline C orp.

S ocial Media V enures , Inc .

B igs tring C orp.
My riad G roup AG

T otal S port O nline AS
S hutterfly , Inc .

Acceleriz e New Media , Inc .

K ings oft C o. Ltd.
DADA S pA

Ac toz S oft C o. , Ltd.

Wiz z ard S oftware C orporation

Figure 15. TEV/Revenue Ranking
Source. Capital IQ

TEV/Revenue (LTM) by country/exchange: W e have also calculated multiples based on where the companies are listed
or domiciled. Figure 16 shows the average TEV/Revenue multiples by stock exchange. The OTCBB has the largest
number of companies (19), trading at an average multiple of 12.7x (up from 11.0x last week). On a geographic basis, the
United States has the most companies (39), trading at an average of 5.9x revenue (up from 5.1x last week) (Figure 17).
Ten of the companies are Canadian (average 5.1x revenue).

Average TEV/LTM Revenue - By Exchange Average TEV/LTM Revenue - By Country
18.0 17.0 18.0 17.0
16.0 16.0
14.0 12.7 14.0
12.0 12.1 12.0
11.7 12.1
10.0 11.7
(x)

10.99.4 10.0
(x)

8.0
8.0 7.4 6.6
6.0 5.7 4.9 4.63.9
3.6 2.8 2.4 6.0 5.9 5.1
4.0 2.2 2.0 2.0 1.9 1.7 4.6
4.0 4.4
2.0 0.8 0.7
2.4 2.0 2.0 1.7
0.0 0.4 0.3 0.0 2.0 0.8 0.7
OTCNO

OTCPK
OTCBB

GTSM

NasdaqGM

0.7 0.4 0.0
HLSE

SEHK

TSE

OSE

KOSE
NasdaqGS

RTS
OM
CM
XTRA

TSX

AMEX

KLSE
BSE
AIM

TSXV

SWX

0.0
ASX

Germany
United
Finland

China

United
Canada

Japan

Hong Kong
Malaysia
India
Russia
Italy
South
Taiwan

Australia
Norway

Switzerland

Sweden

# Companies 1 19 1 2 3 2 4 5 1 4 11 2 1 1 2 6 14 1 1 1 1 5 1

# Companies 1 1 2 10 3 39 10 1 6 1 2 8 1 1 1 1 1 1

Figures 16 & 17. TEV/Revenue Ranking (Exchange, Country)
Source. Capital IQ
Page 16

TEV/EBITDA (LTM) averages 12.4x: The average multiple for the 36 companies with positive EBITDA (and multiples
under 100x) is 12.4x LTM EBITDA (up from 11.9x last week), led by Tencent Holdings Ltd.’s (700-SEHK) 43.4x multiple
(Figure 18). Twelve of the companies have EBITDA multiples under 7x. The median multiple is 9.8x (vs. 9.4x last week).

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

50. 0

45. 0 43. 4
42. 0

40. 0

35. 0
30. 9
30. 0
26. 0
25. 0 22. 9 23. 6
20. 8
19. 4 19. 7
20. 0

15. 0 A verage, 12.4 13. 5 14. 1
12. 2
11. 1
9. 7 9. 8 9. 8 9. 9 10. 1 10. 3 11. 0
7. 7 8. 6 8. 6 8. 7
10. 0 6. 5
6. 2 6. 4
4. 0 4. 0 4. 2 4. 4 4. 6
5. 0 1. 8
0. 9 1. 3
0. 0
NE O WIZ G ames C orporation
J umbuck E ntertainment P ty Ltd.

G amania Digital E ntertainment C o. , Ltd.

G ungH o O nline E ntertainment, Inc .

P NI Digital Media Inc .

C hines e G amer International
DXN Holdings B hd

C hangy ou. c om L imited
G ameO n C o L td.

C DC C orp.

S K C ommunic ations C o. , L td.
Modern T imes G roup Mtg AB
S NAP Interac tive, Inc .

U nited O nline Inc .

T heS treet. c om, Inc .

O pen T ex t C orp.
S park Network s , Inc .

C yberplex Inc .

V alueC lic k Inc .

NetDragon WebS oft, Inc .

S ohu. c om Inc .

IAC /InterAc tiveC orp.

Mix i, Inc .

G ree, Inc .

T enc ent Holdings L td.
XING AG
P erfec t World C o. , L td.

Y edangO nline C orp.

Y nk K orea Inc.

O penwave S y s tems Inc .

H anbitS oft, Inc.
S hutterfly , Inc.

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

Figure 18. TEV/EBITDA Ranking
Source. Capital IQ

TEV/EBITDA (LTM) by country/exchange: Figure 19 shows the average TEV/EBITDA multiples by stock exchange. The
OTCBB has the largest number of companies (19). On a geographic basis, the United States has the most companies
(39), trading at an average of 9.2x EBITDA (Figure 20). Ten of the companies are Canadian (average 13.3x EBITDA).

Average TEV/LTM EBITDA - By Exchange Average TEV/LTM EBITDA - By Country
25.0 23.8 25.0

20.0 19.7
23.6 20.0
19.7 18.4
15.0 18.4
15.0 15.6
(x)

14.1
(x)

13.3 13.1
10.0 11.0 10.3 10.1 10.1 11.0 10.3
6.5 6.4 10.0 9.7 9.2
5.0 6.2 4.6 4.4 4.0
1.3 0.2 6.4
5.0 4.6
0.0 0.2
OTCBB
GTSM

NasdaqGM

1.3
SEHK

KOSE

TSE

NasdaqGS

OSE

RTS
OM

CM
XTRA

TSX

KLSE

AMEX
TSXV

ASX

0.0 0.0
Germany
China

Canada

Japan

Hong Kong
United

Malaysia

Russia
Italy
South
Korea

States
Taiwan

Australia
Sweden

Switzerland

# Companies 3 4 2 6 5 1 2 14 1 4 1 5 1 2 19 2 1
# Companies 3 8 10 10 6 1 2 1 39 1 1 2 1 1

Figures 19 & 20. TEV/EBITDA Ranking (Exchange, Country)
Source. Capital IQ
Page 17

P/E (LTM) averages 18.1x: The average multiple for the 33 companies with positive earnings (and multiples under 100x)
is 18.1x LTM EPS, led by Tencent Holdings Ltd.’s (700-SEHK) 58.4x multiple (Figure 21). Eleven of the companies have
P/E multiples under 10x. The median is just 13.2x.

P /E L T M (x)

70.0 65.2

60.0 55.2
50.1
50.0
43.9
40.2
40.0
32.9
29.4
30.0
23.4 23.5 24.0
19.5 20.3
20.0 A verage, 18.1
16.1
13.0 13.2 13.3 13.8 14.3
11.2 11.6 11.9
9.6 10.2
10.0 7.5
4.5 6.0
2.0 2.1 2.6 2.7 3.1

0.0

NE O W IZ G ames C orporation
J umbuck E ntertainment P ty Ltd.

G amania Digital E ntertainment C o., Ltd.

G ungH o O nline E ntertainment, Inc.
C hines e G amer International
DXN H oldings B hd

C hangy ou.com Limited
G iant Interactive G roup, Inc.

G ameO n C o Ltd.

Modern T imes G roup Mtg AB
T he9 Limited

S handa Interactive E ntertainment Ltd.

Neteas e.com Inc.

S NAP Interactive, Inc.

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

G igaMedia Ltd.

IAC /InterActiveC orp.

S park Network s , Inc.

S ohu.com Inc.

NetDragon W ebS oft, Inc.

Worlds .com Inc.

G ree, Inc.

Mix i, Inc.

T encent H oldings Ltd.
XING AG
P erfect World C o., Ltd.

Y edangO nline C orp.

H anbitS oft, Inc.

K ings oft C o. Ltd.
Actoz S oft C o., Ltd.

Figure 21. P/E Ranking
Source. Capital IQ

P/E (LTM) by country/exchange: Figure 22 shows the average P/E multiples by stock exchange. The OTCBB has the
largest number of companies (19), trading at an average multiple of 16.8x. On a geographic basis, the United States has
the most companies (39), trading at an average of 14.6x earnings (Figure 23). Ten of the companies are Canadian
(average 13.5x EPS).

Average P/E - By Exchange Average P/E - By Country
70.0 65.2 45.0 42.6
60.0 40.0
50.0 35.0
30.0
40.0 35.1
31.6 30.2
(x)

25.0 23.5 23.4
20.2
(x)

30.0 23.4
18.4 16.8 20.0 14.6
20.0 13.5
13.3 13.2 10.4 15.0 13.2 12.3
7.5 6.0 4.5
10.0 10.0 6.0
2.0 4.5
0.0 0.0 5.0 0.0
OTCBB
GTSM

NasdaqGM
OSE

TSE

SEHK

KOSE

NasdaqGS
OM
XTRA

AMEX

TSX

KLSE

NYSE
ASX

0.0 0.0
Germany
Japan

Canada

United

China

Malaysia

Italy
South
Korea
States
Taiwan

Australia
Sweden

Switzerland

# Companies 1 5 3 2 2 6 19 2 1 14 4 1 2 1 5
# Companies 6 3 2 10 39 10 1 8 1 2 1 1

Figures 22 & 23. P/E Ranking (Exchange, Country)
Source. Capital IQ
Page 18

UPCOMING EVENTS
E arnings C alendar
C ompany Date & Time Quarter C onf C all Details
S handa Interactive E ntertainment L td. (Nas daqG S : S NDA) T hurs day, S eptember 03, 2009 9: 00 P M (E DT ) Q 2 2009 1-866-713-8310

Figure 24. Earnings Calendar
Source. Company reports
Page 19

C omparable C ompany Analys is > Web 2.0
Pric e P erformanc e
C ompany Name C urrenc y Tic ker E xc hange US D Market C ap ($m) C urrent P ric e 1 Wk 1 Mth 3 Mth 6 Mth 1 Yr 52 Week

A ccelerize New Media, Inc. US D AC L Z OT C B B 15.8 0.57 1. 8% 26.7% 14.0% 62.9% -9.5% -13.6%
A ctoz S oft C o. , L td. KR W A052790 K OS E 131.2 18, 950 -1.0% -20.0% -37.3% 89.5% 103. 8% -47.4%
A Q Interactive, Inc. JPY 3838 TS E 29.3 50, 000 -0.8% -17.2% -34.6% 62.3% -60. 0% -63.6%
A s s ociated Media H oldings Inc. US D AS MH OT C P K 0.6 0.01 -30.0% -30.0% 833.3% 180.0% -30. 0% -72.0%
B igs tring C orp. US D BSGC OT C B B 1.4 0.02 42.0% -11.1% 26.3% 41.2% -60. 0% -65.7%
B eta wave C orpora tion US D B W AV OT C B B 2.3 0.08 0. 0% 14.3% 11.0% -55.6% -76. 5% -76.5%
B eyond C ommerce, Inc. US D B Y OC OT C B B 7.9 0.17 -5.6% -55.4% -82.1% -69.1% -93. 9% -94.2%
B right T hings plc GB P AIM:B G T A IM 4.6 0.01 3. 6% -21.6% -12.1% 28.9% -21. 6% -41.3%
B roadW ebA s ia Inc. US D BWBA OT C P K 19.5 0.23 -22.8% -22.8% -54.9% -77.2% -84. 7% -92.1%
C DC C orp. US D C H IN.A Nas da qG S 249.1 2.35 -10.6% -23.0% 36.6% 193.8% -5.6% -40.1%
C ha ngyou.com Limited US D C Y OU Nas da qG S 2, 076.8 37.76 -0.8% 2.7% 0.3% NM NM -21.9%
C hina G a tewa y C orporation US D CGWY OT C P K 0.3 0.02 -25.0% 650.0% 650.0% 650.0% -50. 0% -57.1%
C hines e G a mer International TWD G T S M:3083 GTS M 1, 038.2 406.00 3. 2% -6.2% 15.8% 208.7% 483. 7% -21.8%
C LIC K E R Inc. US D CLK Z OT C B B 0.4 0.00 -8.0% -33.3% 21.1% -84.7% -99. 2% -99.3%
C ornerW orld C orpora tion US D CW R L OT C B B 5.3 0.06 -8.3% 10.0% -38.9% -63.3% -93. 0% -93.0%
C yberplex Inc. C AD T S X: C X TS X 82.4 1.39 -13.1% -17.8% -13.7% 297.1% 127. 9% -30.2%
DADA S pA E UR C M:DA CM 150.4 6.47 1. 4% 5.5% 11.2% 32.0% -41. 7% -46.1%
DXN Holdings B hd MY R DXN K LS E 35.8 0.55 3. 8% 34.1% 39.2% 77.4% 41.0% -3.5%
Dibz Interna tional, Inc. US D DIB Z OT C P K 0.0 0.00 20.0% NM 20.0% -88.0% -97. 6% -97.6%
DigitalP os t Intera ctive, Inc. US D DG LP OT C B B 3.9 0.05 -16.7% -7.4% 127.3% 733.3% -9.1% -49.5%
DigitalT own, Inc. US D DG T W OT C B B 41.3 1.51 7. 9% 7.9% -24.5% -39.6% -62. 3% -66.4%
Dolphin Digital Media, Inc. US D DP DM OT C B B 23.1 0.43 10.3% -14.0% -21.8% -15.7% -44. 9% -61.9%
E olith C o. L td. KR W A041060 K OS E 54.4 935.00 8. 7% 15.4% 26.4% 74.8% 40.6% -19.4%
E xtens ions , Inc. US D E XT I OT C P K 8.9 0.20 150.0% 150.0% 33.3% 0. 0% 100. 0% -80.2%
F luid Mus ic C anada, Inc. C AD T S X: F MN TS X 66.8 1.40 6. 1% 55.6% 47.4% 225.6% -11. 9% -22.2%
F rogs ter Intera ctive P ictures AG E UR FR G XT R A 68.8 18.99 13.4% 40.7% 133.0% 442.6% 211. 3% -4.5%
G amania Digita l E ntertainment C o., L td. TWD 6180 GTS M 232.7 50.40 0. 2% -15.4% -7.5% 110.4% 157. 1% -26.7%
G ameO n C o L td. JPY 3812 TS E 107.7 103, 400 -1.2% 1.5% -10.1% 14.3% -14. 0% -32.4%
G eoS entric Oyj E UR G E O1V H LS E 64.4 0.05 0. 0% 25.0% 25.0% 66.7% 0.0% -28.6%
G ia nt Interactive G roup, Inc. US D GA NY S E 1, 709.6 7.55 -2.6% -7.1% -11.0% 14.9% -8.8% -21.1%
G igaMedia L td. US D G IG M Nas da qG S 257.3 4.72 -0.2% -3.3% -24.1% -9.2% -56. 3% -61.2%
G ra vity C o., Ltd US D GR VY Nas da qG M 45.9 1.65 -31.0% 5.1% 50.0% 146.3% 11.5% -37.3%
G ree, Inc. JPY T S E :3632 TS E 1, 993.9 8, 270 -3.2% 8.1% 42.1% 73.7% NM -5.5%
G ungH o Online E ntertainment, Inc. JPY 3765 OS E 290.6 235, 500 -3.1% 14.4% -5.0% 101.3% 16.0% -15.9%
H anbitS oft, Inc. KR W A047080 K OS E 69.9 3, 975 4. 7% -9.0% -23.6% 30.3% 20.8% -40.1%
IAC /InterA ctiveC orp. US D IA C I Nas da qG S 2, 452.1 18.52 -2.7% 0.6% 13.1% 27.6% 6.4% -5.3%
IAS E nergy, Inc. US D IA S A. E OT C B B 9.1 0.13 -13.3% 16.1% -43.5% 188.9% -40. 9% -53.6%
is eemedia Inc. C AD IE E T S XV 2.3 0.05 0. 0% -37.5% -37.5% -37.5% -68. 8% -73.7%
J umbuck E ntertainment P ty Ltd. AU D AS X: J MB AS X 15.2 0.37 -1.3% -2.6% -17.8% -17.8% -26. 0% -39.3%
K AB Dis tribution Inc. C AD T S X: K AB TS X 81.5 1 0. 0% 0.0% 4.9% 60.0% -8.6% -24.7%
K ings oft C o. L td. HK D 3888 S E HK 1, 177.6 8 -3.3% 7.0% 60.2% 224.8% 179. 3% -11.5%
L ingo Media C orpora tion C AD T S XV :LM T S XV 12.5 1.10 -1.8% -4.3% 8.9% 22.2% -40. 5% -42.7%
L iveW orld Inc. US D LV W D OT C P K 1.5 0.05 0. 0% 35.1% -37.5% 25.0% -77. 3% -80.0%
L ookS mart, L td. US D LO OK Nas da qG M 20.4 1.19 -7.0% 5.3% -9.2% 13.3% -60. 3% -63.5%
Ma gnitude Information S ys tems Inc. US D MAG Y OT C B B 4.5 0.01 53.8% 53.8% -23.1% -49.5% -28. 6% -66.7%
Mixi, Inc. JPY 2121 TS E 994.1 599,000.00 -2.4% -10.2% 27.4% 65.9% -22. 5% -35.0%
Modern T imes G roup Mtg AB SEK MT G B OM 2, 683.9 290.00 -6.5% 7.8% 25.3% 131.5% -9.9% -18.2%
MO K O .mobi L imited AU D MK B AS X 5.5 0.08 5. 6% 15.4% 13.6% 50.0% 114. 3% -25.0%
Myriad G roup AG C HF MY R N S WX 86.8 4.31 -4.2% 4.1% -24.9% 2. 1% -54. 6% -56.5%
NE O W IZ G ames C orporation KR W A095660 K OS E 539.7 31,950.00 7. 8% 2.4% -15.9% 99.1% 218. 7% -23.9%
NetDra gon W ebS oft, Inc. HK D 777 S E HK 395.5 5.80 -12.7% -5.7% 9.4% 104.2% 10.3% -18.9%
Netea s e. com Inc. US D NT E S Nas da qG S 5, 434.6 41.99 -0.7% -4.7% 17.2% 100.8% 72.4% -10.5%
NeuLion Incorpora ted C AD T S X: NL N TS X 115.2 1.11 0. 9% 33.7% 48.0% 241.5% NM -14.6%
NeXplore C orpora tion US D NXP C OT C P K 31.2 0.56 -6.7% -20.0% -20.0% -13.8% 12.0% -61.4%
Ngi G roup Inc. JPY 2497 TS E 40.3 30,200.00 -6.8% -6.4% -17.0% 50.5% -66. 2% -76.3%
Northgate T echnologies Limited INR 590057 BSE 28.8 40.40 2. 5% 3.2% -18.2% 16.3% -85. 8% -87.1%
O pen T ext C orp. US D OT E X Nas da qG S 1, 974.8 35.17 -2.2% -6.8% 0.1% 14.7% 6.1% -12.5%
O penwa ve S ys tems Inc. US D OP W V Nas da qG S 230.8 2.77 -3.1% 5.3% 48.1% 229.8% 89.7% -11.5%
P erfect W orld C o., Ltd. US D PWRD Nas da qG S 1, 876.3 38.15 -2.2% 6.7% 73.4% 261.6% 60.2% -9.0%
P NI Digital Media Inc. C AD T S XV :P N T S XV 56.0 1.80 7. 8% 20.0% 20.0% 20.0% -43. 8% -48.6%
Q uepa s a C orp. US D QP S A OT C B B 17.8 1.40 -6.7% 17.6% 37.3% 20.7% -58. 5% -59.5%
O AO R B C Information S ys tems US D R BCI R TS 145.7 1.05 0. 0% 16.7% 6.6% 238.7% -86. 2% -86.6%
S ha nda Interactive E nterta inment L td. US D S NDA Nas da qG S 3, 267.6 48.94 0. 4% -1.3% -19.0% 55.9% 76.0% -24.7%
S hutterfly, Inc. US D S F LY Nas da qG S 368.1 14.46 -4.6% -10.0% -1.3% 75.3% 44.9% -12.6%
S K C ommunications C o. , L td. KR W A066270 K OS E 312.8 9,300.00 -0.1% 0.8% -21.5% 46.7% -12. 3% -28.5%
S NA P Intera ctive, Inc. US D S TVI OT C B B 5.4 1 25.0% 150.0% -36.7% -47.4% -43. 8% -53.7%
S NM G loba l H oldings US D S NMN OT C P K 0.0 0.01 55.6% 40.0% 250.0% 600.0% -99. 0% -99.4%
S ocial Media V enures , Inc. US D S MV I OT C P K 0.0 0.11 0. 0% -73.8% 1000. 0% -90.8% -56. 0% -97.8%
S ocialwis e, Inc. US D S CLW OT C B B 27.4 0.62 3. 3% -18.3% -10.1% 47.6% -72. 4% -76.2%
S ohu.com Inc. US D S O HU Nas da qG S 2, 339.1 61.02 -5.4% -0.2% -6.5% 32.7% -10. 2% -21.3%
S pa rk Networks , Inc. US D LO V A ME X 48.8 2 10.4% -3.7% 1.3% -1.2% -44. 2% -46.9%
S pectrumDNA, Inc. US D S P XA OT C B B 10.7 0 -4.3% 57.1% -40.5% 131.6% -62. 7% -61.4%
T encent H oldings Ltd. HK D 700 S E HK 26,993. 3 115 -3.9% 10.2% 36.8% 153.4% 93.3% -6.0%
T he P a rent C ompany US D K IDS . Q OT C P K 0.3 0.01 -28.9% -6.7% -6.7% -12.5% -99. 2% -99.2%
T he9 L imited US D NC T Y Nas da qG S 188.2 7.50 -11.1% -13.8% -29.3% -25.8% -61. 3% -62.2%
T heS treet.com, Inc. US D TS CM Nas da qG M 76.5 2.50 8. 2% 20.2% 28.2% 35.1% -61. 5% -65.9%
T ota l S port Online A S NO K T OS O O T C NO 0.1 0.03 0. 0% 0.0% 0.0% -25.0% -40. 0% -40.0%
T ree.C om, Inc. US D TR E E Nas da qG M 76.6 7.09 -17.7% -29.0% -33.5% 67.6% -9.1% -45.8%
U nis erve C ommunica tions C orp. C AD T S XV :US S T S XV 1.0 0.05 0. 0% 0.0% -25.0% -10.0% -78. 6% -82.0%
U nited O nline Inc. US D UNT D Nas da qG S 586.0 6.99 -5.5% -23.9% -1.8% 55.7% -33. 2% -37.0%
U OMO Media, Inc US D UO MO OT C B B 13.7 0.16 6. 7% -5.9% -23.8% 128.6% -55. 6% -84.9%
V alueC lick Inc. US D V CLK Nas da qG S 893.3 10.25 -4.7% -10.9% -6.7% 71.4% -10. 9% -24.1%
V OIS , Inc. US D V O IS OT C B B 5.0 0.01 0. 0% 9.1% 71.4% -7.7% -72. 0% -73.9%
W ebzen Inc. US D W ZE N Nas da qG M 33.7 2.84 0. 7% -16.4% -36.9% 199.0% 30.9% -39.3%
W izzard S oftwa re C orporation US D W ZE A ME X 24.2 0.48 6. 7% -5.9% -14.3% 0. 0% -66. 0% -72.3%
W orlds .com Inc. US D W DDD OT C B B 6.3 0.12 9. 1% 0.0% -7.7% 0. 0% -45. 5% -65.7%
W oozyF ly, Inc. US D W ZY F OT C B B 2.6 0.15 0. 0% NM 0.0% 0. 0% NM -96.3%
W ynds torm C orpora tion US D W Y ND OT C P K 1.8 0.10 0. 0% 0.0% 233.3% -16.7% -83. 3% -83.3%
XING A G E UR O1B C XT R A 223.0 29.50 7. 3% 3.5% -10.2% 8. 9% -9.1% -16.9%
Y eda ngOnline C orp. KR W A052770 K OS E 107.1 8, 900 4. 1% 12.1% -14.4% 30.9% 30.7% -28.2%
Y nk K orea Inc. KR W A023770 K OS E 17.8 4, 160 2. 1% -22.0% -44.5% 23.8% -54. 6% -66.5%
H igh 150.0% 650.0% 1000. 0% 733.3% 483. 7% -3.5%
L ow -31.0% -73.8% -82.1% -90.8% -99. 2% -99.4%
Average 699.3 1.5% 11.2% 35.4% 79.2% -6.7% -47.9%
Media n -0.1% 0.0% -0.6% 41.2% -27. 3% -45.9%

Figure 25. Price Performance
Source. Capital IQ
Page 20

C omparable C ompany Analys is > Web 2.0
Valuation Multiples
P rimary US D Market TE V/L TM TE V/ NTM TE V/L TM TE V/NTM
C ompany Name S ec tor C ountry E xc hange Ticker C ap ($m) R evenue R evenue E B ITDA E B ITDA P /L TM E P S P /NTM E P S P /TangB V
Accelerize New Media, Inc. Direct Marketing U nited S ta tes OTCB B AC LZ 15.8 4.7x - - - - - -
Actoz S oft C o., Ltd. G aming S outh K orea K OS E A052790 131.2 1.0x - 4. 0x - 19.5x - 2.1x
AQ Intera ctive, Inc. G aming J apan TS E 3838 29.3 0.1x - - - - - 0.5x
As s ocia ted Media Holdings Inc. Mobile U nited S ta tes OTCP K AS MH 0.6 15.6x - - - - - -
B igs tring C orp. Ins ta nt Mes s aging U nited S ta tes OTCB B BSGC 1.4 39.4x - - - - - -
B etawave C orpora tion Media U nited S ta tes OTCB B B W AV 2.3 - - - - - - 0.5x
B eyond C ommerce, Inc. S ocial Networking U nited S ta tes OTCB B B YOC 7.9 1.2x - - - - - -
B right T hings plc S ocial Networking U nited K ingdom AIM AIM:B G T 4.6 17.0x - - - - - -
B roadW ebAs ia Inc. S ocial Networking U nited S ta tes OTCP K BWBA 19.5 - - - - - - -
C DC C orp. G aming H ong K ong N as da qG S C HIN.A 249.1 0.7x 0.7x 9. 7x 6.8x - - 99.6x
C hangyou.com Limited G aming C hina N as da qG S C Y OU 2,076.8 7.5x 5.8x 12.2x 10.0x 14.3x 12.8x 14.1x
C hina G atewa y C orpora tion Mobile U nited S ta tes OTCP K CGW Y 0.3 0.0x - - - - - -
C hines e G amer Interna tional G aming T a iwa n GTS M G T S M:3083 1,038.2 17.3x - 30.9x - 40.2x - 15.1x
C L IC K E R Inc. Direct Marketing U nited S ta tes OTCB B C LK Z 0.4 0.2x - - - - - -
C ornerW orld C orporation C ontent U nited S ta tes OTCB B CW R L 5.3 4.0x - - - - - -
C yberplex Inc. A dvertis ing C ana da TS X T S X: C X 82.4 0.7x 0.6x 6. 5x 5.0x 7.5x 8.4x 3.3x
DA DA S pA S ocial Networking Italy CM C M:DA 150.4 0.8x - 6. 4x - - - -
DXN Holdings B hd S ocial Networking Mala ys ia K LS E DXN 35.8 0.7x - 4. 6x - 6.0x - 0.8x
Dibz Interna tiona l, Inc. S NS Apps U nited S ta tes OTCP K DIB Z 0.0 - - - - - - -
DigitalP os t Interactive, Inc. C ontent U nited S ta tes OTCB B DG L P 3.9 5.9x - - - - - -
DigitalT own, Inc. S ocial Networking U nited S ta tes OTCB B DG T W 41.3 - - - - - - -
Dolphin Digital Media, Inc. S ocial Networking U nited S ta tes OTCB B DP DM 23.1 41.4x 1.5x - - - 1.7x -
E olith C o. L td. G aming S outh K orea K OS E A041060 54.4 3.8x - - - - - 5.1x
E xtens ions , Inc. C ontent U nited S ta tes OTCP K E XT I 8.9 - - - - - - -
F luid Mus ic C a nada, Inc. Media U nited S ta tes TS X T S X:F MN 66.8 11.4x 8.1x - - - - 6.3x
F rogs ter Interactive P ictures A G G aming G erma ny XT R A FR G 68.8 20.4x - - - - - 9.3x
G amania Digital E ntertainment C o., Ltd. G aming T a iwa n GTS M 6180 232.7 1.5x - 8. 6x - 20.3x - 3.1x
G ameO n C o Ltd. G aming J apan TS E 3812 107.7 0.4x - 1. 8x - 11.2x - 1.3x
G eoS entric Oyj Mobile F inland H LS E G E O1V 64.4 12.1x - - - - - 54.3x
G iant Interactive G roup, Inc. G aming C hina NY S E GA 1,709.6 - - - - 2.0x 13.6x 0.3x
G igaMedia Ltd. G aming T a iwa n N as da qG S G IG M 257.3 1.0x 1.0x - 4.7x 10.2x 9.5x 2.2x
G ravity C o., Ltd G aming S outh K orea N as da qG M GR VY 45.9 - - - - 0.0x - 0.0x
G ree, Inc. S ocial Networking J apan TS E T S E : 3632 1,993.9 12.5x - 20.8x - 43.9x - 20.3x
G ungH o O nline E nterta inment, Inc. Media J apan OS E 3765 290.6 2.2x - 10.1x - 65.2x - 22.5x
Ha nbitS oft, Inc. G aming S outh K orea K OS E A047080 69.9 1.0x - 42.0x - 13.0x - 2.1x
IAC /InterActiveC orp. Media U nited S ta tes N as da qG S IAC I 2,452.1 0.5x 0.5x 13.5x 4.2x 11.6x 35.2x 1.2x
IAS E nergy, Inc. V ideo C ana da OTCB B IAS A.E 9.1 - - - - - - -
is eemedia Inc. C ontent C ana da T S XV IE E 2.3 0.9x - - - - - 1.9x
J umbuck E ntertainment P ty L td. S ocial Networking Aus tra lia AS X AS X:J MB 15.2 0.6x - 1. 3x - 4.5x - 1.5x
K A B Dis tribution Inc. C ontent C ana da TS X T S X:K AB 81.5 - - - - - - 0.9x
K ings oft C o. Ltd. G aming C hina S E HK 3888 1,177.6 8.6x - 19.4x - 23.5x - 6.6x
Lingo Media C orpora tion L earning C ana da T S XV T S XV : LM 12.5 12.1x - - - - - 12.8x
LiveW orld Inc. S ocial Networking U nited S ta tes OTCP K LV W D 1.5 0.0x - - - - - 0.7x
LookS ma rt, L td. Direct Marketing U nited S ta tes N as da qG M L OOK 20.4 - - - - - - 0.8x
Magnitude Information S ys tems Inc. S ocial Networking U nited S ta tes OTCB B MA G Y 4.5 - - - - - - -
Mixi, Inc. S ocial Networking J apan TS E 2121 994.1 6.7x - 19.7x - 50.1x - 6.8x
Modern T imes G roup Mtg AB Media S weden OM MT G B 2,683.9 1.7x 1.6x 11.0x 12.4x 13.2x 14.4x -
MOK O .mobi Limited S ocial Networking Aus tra lia AS X MK B 5.5 3.5x - - - - - 3.9x
Myriad G roup AG Mobile S witzerla nd SWX MY R N 86.8 2.4x - - - - - 3.8x
NE OW IZ G ames C orporation G aming S outh K orea K OS E A095660 539.7 2.7x - 9. 9x - 29.4x - 14.9x
NetDra gon W ebS oft, Inc. G aming C hina S E HK 777 395.5 2.9x - 8. 6x - 16.1x - 2.1x
Netea s e.com Inc. G aming C hina N as da qG S NT E S 5,434.6 - - - - 3.1x 16.9x 0.9x
NeuLion Incorporated V ideo C ana da TS X T S X:NL N 115.2 5.1x - - - - - 8.5x
NeXplore C orporation C ontent U nited S ta tes OTCP K NXP C 31.2 - - - - - - -
Ngi G roup Inc. Media J apan TS E 2497 40.3 - - - - - - 0.8x
Northgate T echnologies Limited Direct Marketing India BS E 590057 28.8 0.4x - - - - - -
O pen T ext C orp. C ollabora tion C ana da N as da qG S OT E X 1,974.8 2.5x 2.2x 9. 8x 8.1x 32.9x 12.5x -
O penwave S ys tems Inc. Mobile U nited S ta tes N as da qG S OP W V 230.8 0.6x 0.6x 22.9x 5.5x - 43.3x 3.3x
P erfect W orld C o., Ltd. G aming C hina N as da qG S PWRD 1,876.3 0.5x 2.6x 0. 9x 5.0x 2.7x 12.4x 1.2x
P N I Digital Media Inc. Digita l Ima ging C ana da T S XV T S XV :P N 56.0 2.6x 2.2x 23.6x 7.1x - 14.3x 19.8x
Q uepa s a C orp. S ocial Networking U nited S ta tes OTCB B QP S A 17.8 - - - - - - -
O AO R B C Information S ys tems Media R us s ia R TS R BCI 145.7 0.0x - 0. 2x - - - -
S handa Interactive E nterta inment Ltd. G aming C hina N as da qG S S NDA 3,267.6 - - - - 2.6x 13.3x 1.1x
S hutterfly, Inc. Digita l Ima ging U nited S ta tes N as da qG S S FLY 368.1 1.4x 1.4x 11.1x 7.0x - - 2.2x
S K C ommunications C o., Ltd. S earch S outh K orea K OS E A066270 312.8 1.7x - 26.0x - - - -
S N AP Interactive, Inc. Dating U nited S ta tes OTCB B S TVI 5.4 1.1x - 4. 0x - 9.6x - 3.0x
S N M G lobal Holdings Media U nited S ta tes OTCP K S NMN 0.0 1.1x - - - - - -
S ocial Media V enures , Inc. S ocial Networking U nited S ta tes OTCP K S MV I 0.0 4.5x - - - - - -
S ocialwis e, Inc. S ocial Networking U nited S ta tes OTCB B S CLW 27.4 - - - - - - -
S ohu.com Inc. G aming C hina N as da qG S S O HU 2,339.1 3.8x 3.3x 8. 7x 7.3x 13.8x 16.6x 4.6x
S park N etworks , Inc. S ocial Networking U nited S ta tes AME X L OV 48.8 0.9x - 4. 4x - 13.3x - 49.9x
S pectrumDN A, Inc. Media U nited S ta tes OTCB B S P XA 10.7 - - - - - - -
T encent Holdings Ltd. P orta l C hina S E HK 700 26,993.3 21.2x - 43.4x - 55.2x - 24.6x
T he P a rent C ompany Media U nited S ta tes OTCP K K IDS .Q 0.3 0.2x 0.2x - 12.9x - - -
T he9 L imited G aming C hina N as da qG S NC T Y 188.2 - - - - 2.1x - 0.1x
T heS treet.com, Inc. Media U nited S ta tes N as da qG M TS CM 76.5 0.2x 0.2x 6. 2x - - - 1.0x
T otal S port Online AS Media N orway O T C NO T OS O 0.1 4.6x - - - - - -
T ree.C om, Inc. P orta l U nited S ta tes N as da qG M TREE 76.6 0.4x - - 5.9x - 39.9x 1.0x
Unis erve C ommunications C orp. S ocial Networking C ana da T S XV T S XV :US S 1.0 0.2x - - - - - -
United Online Inc. Media U nited S ta tes N as da qG S U NT D 586.0 0.9x 0.9x 4. 2x 3.6x - 10.0x -
UO MO Media, Inc Media C ana da OTCB B UO MO 13.7 16.4x - - - - - -
V a lueC lick Inc. Media U nited S ta tes N as da qG S V CLK 893.3 1.3x 1.4x 7. 7x 5.4x - 16.0x 5.8x
V O IS , Inc. S ocial Networking U nited S ta tes OTCB B V OIS 5.0 - - - - - - 31.6x
W ebzen Inc. G aming S outh K orea N as da qG M W ZE N 33.7 - - - - 0.0x - 0.0x
W izzard S oftware C orporation P odca s ting U nited S ta tes AME X W ZE 24.2 4.7x - - - - - -
W orlds .com Inc. C ontent U nited S ta tes OTCB B W DDD 6.3 - - - - 24.0x - -
W oozyF ly, Inc. S ocial Networking U nited S ta tes OTCB B W ZY F 2.6 - - - - - - -
W ynds torm C orporation C ontent U nited S ta tes OTCP K W Y ND 1.8 - - - - - - -
XIN G AG S ocial Networking G erma ny XT R A O1B C 223.0 3.0x - 10.3x - 23.4x - 7.3x
Y eda ngO nline C orp. G aming S outh K orea K OS E A052770 107.1 2.1x - 9. 8x - 11.9x - 3.7x
Y nk K orea Inc. G aming S outh K orea K OS E A023770 17.8 1.5x - 14.1x - - - 0.9x
High 26,993.3 41.4x 8.1x 43.4x 12.9x 65.2x 43.3x 99.6x
Low 0.0 0.0x 0.2x 0. 2x 3.6x 0.0x 1.7x 0.0x
Average 699.3 5.3x 1.9x 12.4x 6.9x 18.1x 17.1x 9.3x
Median 47.3 1.9x 1.4x 9. 8x 6.4x 13.2x 13.6x 3.1x

Figure 26. Valuation Comparison
Source. Capital IQ
Page 21

C omparable C ompany Analys is > Web 2.0
S ummary by C ountry
C ompany Name US D Market C ap ($m) Avg US D Market C ap ($m) US D L TM Total R ev ($m) US D L TM Total E B ITDA ($m) E B ITDA %

United S tates 39 C hina 45, 458. 8 C hina 4,545. 9 C hina 4,093. 2 C hina 2, 038. 5 C hina 49. 2%
C a na da 10 U nited S ta tes 5, 088. 9 S weden 2,683. 9 United S tates 3,887. 3 S weden 296. 2 A us tralia 42. 8%
C hina 10 J a pan 3, 455. 9 J apan 576. 0 S weden 1,927. 9 United S tates 290. 4 T aiwan 36. 9%
S outh K orea 8 S weden 2, 683. 9 T aiwan 509. 4 C a na da 1,011. 1 C a na da 200. 1 G ermany 28. 8%
J a pa n 6 C anada 2, 348. 4 Hong K ong 249. 1 S outh K orea 684. 8 J a pa n 184. 4 J apan 24. 2%
T a iwa n 3 T a iwa n 1, 528. 2 C anada 234. 8 J a pa n 629. 3 S outh K orea 118. 0 S weden 15. 4%
Aus tralia 2 S outh K orea 1, 294. 5 S outh K orea 161. 8 T a iwa n 378. 4 T a iwa n 56. 0 Mala ys ia 14. 4%
G erma ny 2 G ermany 291. 8 Ita ly 150. 4 Hong K ong 361. 6 Ita ly 31. 1 Italy 13. 1%
S witzerla nd 1 Hong K ong 249. 1 G ermany 145. 9 Ita ly 236. 9 Hong K ong 25. 1 R us s ia 13. 1%
Hong K ong 1 Ita ly 150. 4 R us s ia 145. 7 R us s ia 148. 9 R us s ia 19. 5 S outh K orea 12. 7%
F inla nd 1 R us s ia 145. 7 U nited S ta tes 130. 5 India 81. 2 Ma lays ia 11. 0 Hong K ong 6. 9%
Ita ly 1 S witzerla nd 86. 8 S witzerla nd 86. 8 Ma lays ia 76. 1 G erma ny 10. 4 S witzerla nd 1. 9%
United K ingdom 1 F inland 64. 4 F inland 64. 4 G erma ny 60. 9 Aus tralia 4. 4 C anada -8. 5%
India 1 Malays ia 35. 8 Malays ia 35. 8 S witzerla nd 40. 0 S witzerla nd 0. 8 U nited S ta tes -21. 9%
S weden 1 India 28. 8 India 28. 8 Aus tralia 17. 4 Norwa y -1. 1 India -50. 0%
R us s ia 1 Aus tralia 20. 7 Aus tralia 10. 3 F inla nd 5. 3 United K ingdom -1. 8 Norway -50. 6%
Ma lays ia 1 U nited K ingdom 4. 6 U nited K ingdom 4. 6 Norwa y 2. 2 F inla nd -17. 1 U nited K ingdom NA
Norwa y 1 Norway 0. 1 Norway 0. 1 United K ingdom 0. 3 India -40. 6 F inland NA

G rand Total 90 G rand Total 62,936.8 G rand Total 699.3 G rand Total 13,642.9 G rand Total 3,225.3 G rand Total 6.0%

Figure 27. Comparison by Country
Source. Capital IQ

C omparable C ompany Analys is > Web 2.0
S ummary by E xc hange
C ompany Name US D Market C ap ($m) Avg US D Market C ap ($m) US D L TM Total R ev ($m) US D L TM Total E B ITDA ($m) E B ITDA %

OT C B B 19 S E HK 28, 566. 4 S E HK 9,522. 1 OM 1,927. 9 Na s daqG S 1, 760. 7 NY S E 62. 5%
Na s daqG S 14 Nas da qG S 22, 194. 1 OM 2,683. 9 S E HK 539. 9 S E HK 771. 6 AS X 42. 8%
OT C P K 11 TS E 3, 165. 3 NY S E 1,709. 6 Na s daqG S 494. 4 OM 296. 2 S E HK 42. 2%
K OS E 6 OM 2, 683. 9 Nas da qG S 1,585. 3 CM 236. 9 TS E 158. 9 GTS M 36. 9%
TS E 5 NY S E 1, 709. 6 GTS M 635. 5 NY S E 198. 5 NY S E 124. 1 Nas da qG S 30. 3%
Na s daqG M 5 GTS M 1, 270. 9 TSE 633. 1 RTS 148. 9 K OS E 99. 9 XT R A 28. 8%
TS X 4 K OS E 1, 215. 0 OS E 290. 6 OS E 115. 1 GTS M 56. 0 TSE 24. 6%
T S XV 4 TS X 345. 9 K OS E 202. 5 TS E 102. 8 CM 31. 1 OS E 22. 2%
S E HK 3 XT R A 291. 8 CM 150. 4 K OS E 102. 6 OS E 25. 6 OM 15. 4%
AME X 2 OS E 290. 6 XT R A 145. 9 GTS M 97. 4 RTS 19. 5 K LS E 14. 4%
AS X 2 Nas da qG M 253. 0 R TS 145. 7 Na s daqG M 81. 9 Na s daqG M 15. 0 CM 13. 1%
XT R A 2 OT C B B 203. 9 SWX 86. 8 BSE 81. 2 K LS E 11. 0 R TS 13. 1%
GTS M 2 CM 150. 4 TSX 86. 5 K LS E 76. 1 XT R A 10. 4 K OS E 9. 6%
SWX 1 R TS 145. 7 HLS E 64. 4 TS X 45. 7 AME X 6. 2 Nas da qG M 7. 7%
HL S E 1 SWX 86. 8 Nas da qG M 50. 6 SWX 40. 0 AS X 4. 4 T S XV 5. 6%
CM 1 AME X 73. 0 AME X 36. 5 XT R A 30. 5 SWX 0. 8 S WX 1. 9%
BS E 1 T S XV 71. 8 K LS E 35. 8 AME X 27. 9 OT C NO -1. 1 A ME X -31. 8%
NY S E 1 HLS E 64. 4 BS E 28. 8 OT C P K 16. 5 AIM -1. 8 TSX -34. 7%
OS E 1 OT C P K 64. 2 T S XV 18. 0 T S XV 11. 7 T S XV -4. 3 OTCB B -38. 8%
AIM 1 K LS E 35. 8 OT C B B 10. 7 AS X 8. 7 TS X -4. 5 OTCP K -41. 5%
OM 1 BS E 28. 8 AS X 10. 3 HL S E 5. 3 HL S E -17. 1 BSE -50. 0%
RTS 1 AS X 20. 7 OT C P K 5. 8 OT C B B 2. 3 OT C P K -34. 1 O T C NO -50. 6%
K LS E 1 AIM 4. 6 AIM 4. 6 OT C NO 2. 2 BSE -40. 6 HLS E NA
OT C NO 1 OT C NO 0. 1 OT C NO 0. 1 AIM 0. 3 OT C B B -62. 4 A IM NA

G rand Total 90 G rand Total 62,936.8 G rand Total 699.3 G rand Total 13,642.9 G rand Total 3,225.3 G rand Total 6.0%

Figure 28. Comparison by Exchange
Source. Capital IQ
Page 22

Financ ing - L as t Three Months (US $ m)
F in. Amount (Million) Type of financing
Month C ompany Name C ountry Angel/S eed P IP E S eries A S eries B S eries C S eries D Grand Total
J un-09 S ugar Inc. US A 16. 0 16. 0
Tumri US A 15. 0 15. 0
B oku US A 13. 0 13. 0
W imba US A 12. 0 12. 0
G rab Networks US A 12. 0 12. 0
AdC hina C hina 10. 0 10. 0
G oojet S AS F rance 8. 5 8. 5
E do Interac tive US A 8. 0 8. 0
AdMeld Inc . US A 8. 0 8. 0
beeTV US A 8. 0 8. 0
blueK iwi S oftware S A F rance 6. 5 6. 5
Nokeena US A 6. 5 6. 5
B ubble Motion US A 6. 0 6. 0
S ens e Networks US A 6. 0 6. 0
Zoos k US A 6. 0 6. 0
G ather US A 5. 3 5. 3
MojoP ages US A 5. 0 5. 0
Taomee C hina 5. 0 5. 0
Animoto US A 4. 4 4. 4
G ameG round Is rael 4. 1 4. 1
R ingR evenue US A 3. 5 3. 5
C rowdc as t US A 3. 0 3. 0
YuMe US A 2. 9 2. 9
eR epublik S pain 2. 8 2. 8
News er L L C US A 2. 5 2. 5
C lic kF uel US A 2. 5 2. 5
Inigral US A 2. 4 2. 4
AdE x Media US A 2. 3 2. 3
G R OU.P S US A 2. 1 2. 1
my6s ens e Is rael 2. 0 2. 0
Yapta US A 2. 0 2. 0
OneTXT US A 2. 0 2. 0
I L ove R ewards C a na da 1. 8 1. 8
C liqs et US A 1. 5 1. 5
P ic aboo US A 1. 0 1. 0
TodaC ell Is rael 1. 0 1. 0
G lubble Netherla nds 1. 0 1. 0
AdW hirl US A 1. 0 1. 0
L iquidP lanner US A 1. 0 1. 0
MOG US A 0. 5 0. 5
Mas hL ogic US A 0. 5 0. 5
J un-09 Total 53.3 15.3 28.5 68.3 34.0 5.3 204.7
Page 23

Financ ing - L as t Three Months (US $ m)
F in. Amount (Million) Type of financing
Month C ompany Name C ountry Angel/S eed P IP E S eries A S eries B S eries C S eries D Grand Total
J ul-09 P andora Media US A 35. 0 35. 0
K ontera L td. Is rael 15. 5 15. 5
Ning US A 15. 0 15. 0
Quic kP lay Media C a na da 12. 0 12. 0
C aus es US A 10. 0 10. 0
Outs park US A 8. 3 8. 3
C onnectE du US A 8. 2 8. 2
Ac quia, Inc US A 8. 0 8. 0
S B Nation US A 8. 0 8. 0
MediaMath US A 6. 6 6. 6
Metavers um G ermany 6. 3 6. 3
iMemories US A 6. 2 6. 2
Invodo US A 6. 0 6. 0
J ambool US A 5. 0 5. 0
Quikr India P vt. L td. India 4. 1 4. 1
OP E N S ports network US A 4. 0 4. 0
S tyleC as ter US A 4. 0 4. 0
Nexage US A 4. 0 4. 0
TweetDec k UK 3. 2 3. 2
B us c a US A 2. 6 2. 6
Akademos US A 2. 5 2. 5
P rotonMedia US A 2. 5 2. 5
iL oop Mobile US A 2. 0 2. 0
C omunitae S pain 1. 7 1. 7
Aloqa G ermany 1. 5 1. 5
L at49 C a na da 1. 5 1. 5
Tributes .com US A 1. 2 1. 2
C oTweet US A 1. 1 1. 1
C likthrough US A 1. 0 1. 0
C ognitive Matc h L imited UK 1. 0 1. 0
C ellufun US A 1. 0 1. 0
B ookF res h US A 0. 5 0. 5
P eople C apital US A 0. 5 0. 5
Mas her Media US A 0. 3 0. 3
J ul-09 Total 63.8 11.1 36.8 51.5 27.0 190.2

Aug-09 Turbine US A 50. 0 50. 0
S mith & Tinker US A 29. 0 29. 0
Mint US A 14. 1 14. 1
R ic hR elevance US A 12. 5 12. 5
Traffiq US A 10. 0 10. 0
MediaMath US A 10. 0 10. 0
B ill.com US A 8. 5 8. 5
E do Interac tive US A 8. 5 8. 5
InnoC entive US A 7. 3 7. 3
OneR iot US A 7. 0 7. 0
B alihoo US A 7. 0 7. 0
B oxee US A 6. 0 6. 0
P olyvore US A 5. 6 5. 6
MOG US A 5. 0 5. 0
Z2L ive US A 3. 0 3. 0
OurS tage US A 3. 0 3. 0
K ODA US A 3. 0 3. 0
S c oreloop G ermany 2. 8 2. 8
R oblox US A 2. 2 2. 2
iS ocket US A 2. 0 2. 0
Tremor Media US A 2. 0 2. 0
C hes s C ube S outh Africa 1. 3 1. 3
L inks ify US A 0. 5 0. 5
iS yndic a US A 0. 4 0. 4
Aug-09 Total 25.8 5.0 76.2 43.6 50.0 200.6

G rand Total 142.9 15.3 44.6 181.3 129.1 82.3 595.4

Figure 29. Financing, Last Three Months
Source. Company reports
Page 24

C ompany Des c riptions - C urrent Month C apital Market Ac tivity
C ompany HQ Webs ite Des cription
B alihoo United S ta tes www.balihoo.com B alihoo, Inc. provides local marketing automation technology and s ervices . T he company offers Local Marketing Automation s olution, which
compris e W orld-C las s Ad B uilder, which allows to dis tribute brand-approved templates by nationa l marketing and cus tomiz e by local
marketers acros s various marketing vehicles ; Integrated Ma rketing P lanning which enables local a ffiliates to plan integrated marketing
campaigns a cros s va rious mediums from a s ingle location; fulfillment and local media buying back-end, which s implifies local marketing
management; Local Marketing R eporting and Metrics that provides vis ibility into marketing activities at the local level compris ing total s pend,
media s election, and res ults reporting tools . It als o provides creative, implementation, local media and marketing planning and
implementation, a nd training s ervices . T he company s erves franchis e ma rketers , dis tributed marketers , and nationa l brands . B alihoo was
formerly known a s E centrality, Inc. a nd changed its name to B alihoo, Inc. in 2008. T he company was founded in 2004 and is ba s ed in B ois e,
Ida ho.
B ill.com United S ta tes www.bill.com B ill. com, Inc. offers an electronic cas h management s ervice. Its s ervice s implifies the way companies ma nage bills , invoices , contracts , and
other documents . T he company delivers its s ervice through an on-demand S oftware a s a S ervice (S aaS ) model. C as hV iew is a W eb-bas ed
s ys tem that allows companies to s tore all documents , proces s es , mes s ages , and trans a ctions in one place. It gives companies a real-time
daily view of anticipated cas h flow while s imultaneous ly proces s ing trans actions . T he compa ny was formerly known as C as hV iew, Inc. a nd
changed its name to B ill. com, Inc. in J anuary, 2008. B ill. com, Inc. was founded in 2006 and is bas ed in P alo Alto, C alifornia.
B oxee United S ta tes www.boxee.tv B oxee T V , Ltd. develops media center s oftware. T he company’s s oftware enables its us ers to control media programs s tored in the pers onal
computer or the Internet doma in, and brings them to the televis ion. It enables its us ers to view, rate, and recommend content to their friends
through s ocial networking features , as well as its s ocial component allows s haring with friends . T he company was founded in 2007 and is
bas ed in New Y ork, New Y ork.
C hes s C ube S outh Africa www.chesscube.com C hes s C ube, is an online game allowing us ers to play ches s for free and maintain their online rating, s ocialize in chat rooms and invite friends
to play ches s . T he company is bas ed in S outh Africa.
E do Interac tive United S ta tes www.edointeractive.net edo interactive, Inc. develops technologies for digital marketing. T he company focus es on Marketing P latform, a behavioral targeting and
marketing platform that allows bus ines s es to create micro-targeted ma rketing campa igns ; monitor the campaign from their computer; target
k ey cons umer groups us ing demogra phic, geographic, a nd ps ychographic cons umer information to filter a nd build targeted campa igns ; and
offers demons trable s ales revenue res ults . It offers P rewarding, a tool that gives cas h incentives directly to cons umers in advance of des ired
purchas ing behavior through their pre-pa id debit Mas terC ard; C as h, a s ys tem that provides cas h rewa rds to loyal cus tomers ; and MarketIQ ,
which provides rea l-time feedback from cus tomers through s urveys and focus group tools . T he company was founded in 2007 and is bas ed
in Na s hville, T ennes s ee.
F riends R eunited United K ingdom www.friendsreunited.co.uk F riends R eunited G roup operates as an online community that connects people through a network of friends . It provides an online meeting
place for people to s ocializ e, ma ke acqua intances , and find others who s hare their interes ts . T he company a ls o ena bles members to look up
friend’s W eb pages , and s hare photos and videos . In addition, it offers online da ting s ervices . T he compa ny is bas ed in the United K ingdom.
F riends R eunited G roup operates as a s ubs idia ry of IT V plc.
G igP ark C a nada www.gigpark.com G igP ark (www. gigpa rk. com) is a s ocia l recommendations tool to find the trus ted s ervice people that friends us e
iL ike United S ta tes www.ilike.com iLike. com, Inc. operates as a s ocial mus ic dis covery s ervice and mus ic application on s ocia l networking s ites in the United K ingdom and
L atin America. It offers iLike S idebar for fans , which s cans mus ic library, recommends mus ic, and connects friends and the iLike community,
a s well as offers a lerts on concerts and favorite artis ts . T he company a ls o provides iLike Univers al Artis t Da s hboard for a rtis ts to manage
their online pres ence. In addition, it offers a mus ic-promotion platform for promoters to create multimedia a ds to target us ers by location and
mus ic tas te; and enables W eb s ite or application developers to add mus ic features . F urther, the company provides t-s hirts for men and
women online. iLike. com, Inc. was formerly known a s E volution Artis ts , Inc. T he company wa s founded in 2002 and is bas ed in S eattle,
W as hington. As of Augus t 19, 2009, iLike. com, Inc. operates as a s ubs idiary of MyS pace, Inc.
InnoC entive United S ta tes www.innocentive.com F ounded in 2001, InnoC entive built the firs t global web community for open innova tion, enabling s cientis ts , engineers , profes s iona ls and
entrepreneurs to collaborate to deliver brea kthrough s olutions for innovative organiz ations . InnoC entive S eekers , who collectively s pend
billions of dolla rs on R &D, s ubmit C hallenges to the InnoC entive Marketpla ce where more than 160, 000+ engineers , s cientis ts , inventors ,
bus ines s people, a nd res earch organiz ations in more than 175 countries a re invited to s olve them. S olvers who deliver the mos t innovative
s olutions receive financial awards ra nging up to US $1, 000,000. InnoC entive’s S eekers include commercial, government and non-profit
organiz ations s uch as P rocter & G amble, Avery Dennis on, P endulum, E li L illy and C ompany, J a ns s en, S olvay, G lobalG iving and T he
R ockefeller F oundation
iS ocket United S ta tes www.isocket.com Is ocket Inc. offers online s ervices and operates platform for s elling online ads . Is ock et Inc. was founded in 2007 a nd is bas ed in Mountain
V iew, C alifornia.
iS yndica United S ta tes www.isyndica.com iS yndica, a cloud-ba s ed digital media dis tribution platform, s implifies online s elling by s yndica ting, promoting and tracking us er content on
multiple es tablis hed channels . iS yndica’s Upload O nce - S ell E verywhere™ approa ch helps us ers increas e revenue while reducing their
work load. B uilt on Amazon W eb S ervices (AW S ), our V irtua l Dis tribution S erver (V DS ) is a groundbreaking, patent pending, multi-category
s oftware-as -a-s ervice (S aaS ) dis tribution platform. iS yndica currently s upports photogra phy a nd video.
K oda United S ta tes www.koda.us K ODA was founded with a mis s ion to create a pla tform that allows emerging talent and s ma rt companies to go beyond the res ume or
traditional job pos ting. More profes s ional than F acebook but more pers onal than LinkedIn, K ODA looks to s howcas e profiles and employer
profiles that allow both s ides of the hiring equa tion to get to know each other.
L inks ify United S ta tes www.linksify.com L inks ify C orporation offers online s ervices and operates contact information s ha ring s ys tem. L inks ify C orporation was founded in 2009 and is
bas ed in R ichmond, C alifornia.
MediaMath United S ta tes www.mediamath.com Media Math, LLC provides cros s -exchange a dvertis ing management s ervices and technology. T he company offers S ingularity, a media
buying platform for advertis ing a gencies , which provides technology, s trategy, s ervices , and ins ights to trade a cros s dis play a dvertis ing
exchanges on behalf of advertis ers . Media Math, LLC was founded in 2007 and is bas ed in New Y ork, New Y ork .
Mint United S ta tes www.mint.com Mint S oftware, Inc. provides a W eb-bas ed s olution for online fina ncial mana gement. It offers money mana gement, debt management,
expens e tracking, inves tment ma nagement, budget management, mutual fund, IR A management, a nd financial pla nning s ervices . T he
company als o provides s ugges tions bas ed on us er’s s pending patterns and a utomatic categorization of purcha s es . Mint S oftware, Inc. was
founded in 2006 and is bas ed in Mountain V iew, C a lifornia .
MOG United S ta tes www.mog.com MOG , Inc. operates as a n online community for mus ic lovers . It enables us ers to find new mus ic, watch mus ic videos , and read news a nd
reviews tha t match pers onal ta s te in mus ic. T he company was founded in 2005 and is headquartered in B erkeley, C alifornia.
OneR iot United S ta tes www.me.dium.com O neR iot, Inc. opera tes as a s earch engine that finds the puls e of the W eb. It ena bles us ers to find the news , videos , pictures , blogs , and
products , as well as provides ins tant acces s to s chool ema ils , weather, nightlife guides , and local news for campus es . T he company was
formerly known a s Me. dium, Inc. and changed its name to O neR iot, Inc. in November 2008. OneR iot, Inc. wa s founded in 2006 and is
headqua rtered in B oulder, C olorado with additional offices in S an F rancis co, C alifornia.
OurS tage United S ta tes www.ourstage.com O urS ta ge, Inc. offers a democra tic competition that allows fa ns to decide the bes t artis t in entertainment in the United S tates . Its
O urS ta ge. com allows the artis t to upload their mus ic or video, and decide which competition to enter, s o that the Internet a udience judges
the work s ide by s ide with the work of others . At the end of ea ch month, the top performers enter into the company’s S MS text voting period,
where the artis t in each channel with the mos t S MS votes wins the priz e. OurS tage, Inc. was founded in 2006 and is bas ed in C helms ford,
Mas s achus etts .
P olyVore United S ta tes www.polyvore.com P olyvore, a fa s hion 2. 0 company founded by the man res pons ible for Y ahoo P ipes , lets us ers mix and ma tch complete outfits by dragging
a nd dropping clothing images found on the web. It’s part s ocia l network, and part des igners ’ club, the end res ult being a place where us ers
can put together their dream outfit or learn about the lates t fas hions from other us ers .
Page 25

C ompany Des c riptions - C urrent Month C apital Market Ac tivity
C ompany HQ Webs ite Des cription
R ichR elevance United S ta tes www.richrelevance.com richrelevance, Inc. provides pers ona liza tion and product recommenda tion tools for the eC ommerce s ites . It offers R ichrecs , which offers
product recommenda tions to pers onaliz e cus tomer's s hopping experience; myrecs that enga ges loyal s hoppers with a pers onalized pa ge of
releva nt product recommendations ; and richmail, which enables cros s -s elling a nd up s elling of relevant products . richreleva nce, Inc. was
founded in 2005 and is headquartered in S an F rancis co, C alifornia. It has loca tions in S an Diego, C alifornia; Dallas a nd Hous ton, T exas ; and
New Y ork, New Y ork.
R oblox United S ta tes www.roblox.com R oblox C orpora tion develops online gaming s oftware. R oblox C orpora tion was founded in 2004 and is bas ed in P ortola V alley, C alifornia.
S coreloop G ermany www.scoreloop.com S coreloop AG opera tes as a s ocial gaming platform for the mobile devices . It cooperates with players of the mobile gaming va lue cha in,
including game developers , aggrega tors , publis hers , and portals . S coreloop helps developers differentiate their games from the competition
a nd genera te new revenue s treams even for free games . S coreloop AG was founded in 2008 and is bas ed in Munich, G ermany.
S mith & Tinker United S ta tes www.smithandtinker.com S mith & T inker, Inc. provides hybrid ga mes that bridge the gap between clas s ic offline tabletop pla y and online digital entertainment for kids .
It offers Nanovor that delivers weekly a nimated W ebis odes , comics , a graphic novel, a field guide, and retail pres ence. T he company was
founded in 2007 and is bas ed in B ellevue, W as hington.
Traffiq United S ta tes www.traffiq.com T R AF F IQ , Inc. , a dis pla y advertis ing mark etplace, operates a digital media management platform that connects buyers and s ellers of online
media. Its platform provides a s uite of enterpris e tools that enables negotiations for deal points and centraliz ed advertis ing operations ,
including trafficking, inventory management, tra cking a nd optimiz ation, and billing. T he company’s pla tform incorporates components of the
media planning, buying, and s elling proces s , including s ite s earch, inventory pa ckaging tools , negotiation management, order execution,
a utomated R F P dis tribution, campa ign optimiz ation, a nd publis her reconciliation/invoicing. It s erves advertis ers and publis hers . T he
company was founded in 2006 and is bas ed in New Y ork, New Y ork with an additional office in V ienna, V irginia.
Tremor Media United S ta tes www.tremormedia.com T remor Media, Inc. , an online video a dvertis ing network , provides video advertis ing s olutions . T he company focus es on offering advertis ers
with in banner and in-s trea m video a dvertis ing on publis her s ites with various video s treams . It als o offers Acudeo V ideo Monetization
P latform, a s uite of products and s ervices to monetiz e s treaming video; a nd s ervice s olution, which provides tools for advertis ers and
publis hers to utiliz e online video advertis ing as a medium. T he compa ny creates cus tom vertical channels for various fields , including
a utomotive, bus ines s /finance, ca reers , entertainment, fa mily/parenting, games , health and fitnes s , kids , men's and women's , mus ic, news
a nd information, s hopping, s ports , technology, a nd teen travel. T he company was formerly known as T remor Network. T remor Media, Inc. is
bas ed in New Y ork, New Y ork.
Turbine Inc. United S ta tes www.turbine.com T urbine, Inc. , an interactive media company, engages in developing, launching, and operating online entertainment in North America . It
offers online games , including multiplayer online role-pla ying games . T he company operates s ocial gaming communities . It als o s ells its
games through reta ilers in North America and E urope. T urbine, Inc. was formerly known a s T urbine E ntertainment S oftware C orp. T he
company was founded in 1994 and is headquartered in W es twood, Ma s s achus etts .
Z2L ive United S ta tes www.z2live.com Z2L ive, a mobile multiplayer ga ming platform, was formed to leverage the new capa bilities of mobile devices , the s eamles s flow between
mobile and W eb communities and the advent of cons umer-focus ed marketplaces . T he compa ny was founded in 2009 by Damon Danieli, a
14-year Micros oft veteran, David B luhm, a long time veteran of mobile content and entertainment and Madrona V enture G roup, a S ea ttle-
bas ed venture capital firm. Z2L ive’s mis s ion is to enable multipla yer gaming acros s all mobile devices and all wireles s networks .

Figure 30. Company Descriptions
Source. Company reports, Capital IQ, Crunchbase
Page 26

RELEVANT DISCLOSURES APPLICABLE TO: NONE

LIST OF DISCLOSURE TERMS:

1. None applicable.

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

I n f o r ma t i o n a b o u t Re s e a r ch C a p i t a l C o r p o r a t i o n ’ s Ra t i n g S y s t e m, t h e d i s t r i b u t i o n o f o u r r e s e a r ch t o cl i e n t s a n d t h e p e r ce n t a g e o f r e c o m me n d a t i o n s wh i c h a r e i n e a c h
o f o u r r a t i n g c a t e g o r i e s i s a v a i l a b l e o n o u r we b si t e a t ww w. r e s e a r ch c a p i t a l . c o m.

T h e i n f o r ma t i o n c o n t a i n e d i n t h i s r e p o r t h a s b e e n d r a wn f r o m s o u r c e s b e l i e ve d t o b e r e l i a b l e b u t i t s a c cu r a c y o r co mp l e t e n e ss i s n o t g u a r a n t e e d , n o r i n p r o vi d i n g i t
d o e s R e s e a r c h Ca p i t a l C o r p o r a t i o n a s s u me a n y r e sp o n si b i l i t y o r l i a b i l i t y . R e s e a r ch C a p i t a l C o r p o r a t i o n , i t s d i r e ct o r s , o f f i c e r s a n d o t h e r e mp l o y e e s ma y , f r o m t i me t o
t i me , h a v e p o si t i o n s i n t h e s e cu r i t i e s me n t i o n e d h e r e i n . Co n t e n t s o f t h i s r e p o r t c a n n o t b e r e p r o d u c e d i n wh o l e o r i n p a r t wi t h o u t t h e e xp r e ss e d p e r mi s si o n o f R e se a r ch
C a p i t a l C o r p o r a t i o n . ( U . S . I n s t i t u t i o n a l Cl i e n t s — Re s e a r ch C a p i t a l U . S. A . I n c. ( a wh o l l y o wn e d s u b si d i a r y o f R e s e a r c h C a p i t a l Co r p o r a t i o n ) a cc e p t s r e s p o n si b i l i t y f o r
t h e c o n t e n t s o f t h i s r e p o r t s u b je c t t o t h e t e r ms & l i mi t a t i o n s s e t o u t a b o v e . F i r ms o r i n s t i t u t i o n s r e ce i vi n g t h i s r e p o r t s h o u l d e f f e ct t r a n s a ct i o n s i n s e c u r i t i e s d i sc u s se d
i n t h e r e p o r t t h r o u g h R e s e a r ch C a p i t a l U . S . A . I n c. , a B r o k e r - D e a l e r R e g i s t e r e d wi t h t h e U n i t e d S t a t e s S e cu r i t i e s a n d E xc h a n g e C o m mi s si o n ) .

Tor on to 4 16. 8 60. 76 00 M ontr eal 51 4. 39 9. 150 0 V anco u ver 60 4. 66 2. 180 0 C al gar y 40 3. 26 5. 740 0 R egi na 306. 566. 7550

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