SOFTWARE & SERVICES 9 SEPTEMBER 2009

WEB 2.O WEEKLY DAVID SHORE, CFA, MBA 416.860.6784

david.shore@researchcapital.com

SKYPE SALE LARGEST TRANSACTIO N IN 2009

E BA Y S EL L S SK Y P E; S H AN D A T O L I ST G AM E S U NIT
Almost four years to the day of announcing the acquisition of Skype, eBay announced last week that it had sold 65%
of its Skype unit to a group of private equity investors, led by Silver Lake Partners, for $1.9 billion in cash and a $125
million note. eBay had acquired Skype for over $4 billion in September 2005. Following the successful IPO of Sohu’s
Changyou unit in April (+155% since IPO), Shanda announced the proposed $800 million IPO of its Shanda Games
unit. Shanda Games generates the vast majority of its revenue from the sale of virtual goods and is highly profitable
(31% net profit margin 1H/09).

Slow start to financing activity for new school year: W ith only five financing transactions to start September, the
largest transaction thus far is the $5 million financing for YuMe (Advertising). The total for September so far is just
$12.2 million, averaging $2.4 million per financing. Total capital raised in August was $208.5 million, averaging $7.7
million (27 deals), July on 35 transactions was $191.4 million, averaging $5.5 million, and June (42 deals) was $204.7
million (averaging $4.9 million).

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

9.7
10.0
(US$m)

(US$m)
200.0
7.7
8.0
7.0 7.0 7.1
6.5 6.6
150.0 6.2
5.5 6.0
4.9

100.0
4.0

2.4
50.0
2.0

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

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

A mixed price performance week: Twenty-seven of the companies in our universe had positive stock price
performances over the past week (for stocks with prices greater than $1) (Figure 6), with 21 companies showing
negative returns on the week. DigitalTown (OTCBB:DGTW ) led the group with a 25.0% return, while Cyberplex
(TSX:CX) had the worst return, dropping 14.8% 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
~$67 billion (Figure 1). The median market cap for the group is ~$66 million, with average trailing revenue of ~$160
million (median $58 million). The companies are also generally profitable, with a median EBITDA margin of 13.1%. On a
valuation basis, the overall average is 6.0x trailing revenue (median 2.1x) and 12.7x trailing EBITDA (median 10.0x).
Nineteen of the companies have more than 500 employees.
C omparable C ompany Analys is > Web 2.0
Trading C urrent US D Market US D L TM Total US D L TM Total E B ITDA TE V/L TM TE V/L TM
C ompany Name L TM as of Ticker E xc hange C urrency HQ P rice C ap ($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 17,850 124. 8 105.3 25. 1 23. 8% 0. 9x 3. 7x NA
AQ Interactive, Inc. 6/30/2009 3838 TS E JPY J a pan 51,000 29. 8 63. 5 (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 1.3 0. 1 (1.5) NM 37.5x - 4
B eta wave C orporation 6/30/2009 B W AV OT C B B US D United S ta tes 0. 07 2.0 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. 21 9.7 11. 7 (12. 8) NM 1. 3x - 101
B right T hings plc 9/30/2008 AIM: B G T AIM GBP United K ingdom 0. 01 6.1 0. 3 (1.8) NM 22.4x - 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. 38 252. 2 361.6 25. 1 6.9% 0. 7x 9. 9x 2, 227
C hangyou. com L imited 6/30/2009 C Y OU Na s daqG S US D C hina 39. 05 2,147. 8 241.2 147.2 61. 0% 7. 8x 12. 7x 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 461 1,180. 6 56. 2 31. 5 56. 0% 19.8x 35. 4x NA
C LIC K E R Inc. 5/31/2009 C LK Z OT C B B US D United S ta tes 0. 01 0.6 2. 5 (1.2) -45. 8% 0. 3x - 22
C ornerW orld C orpora tion 4/30/2009 CWR L OT C B B US D United S ta tes 0. 06 5.7 3. 9 NM NM 4. 1x - 16
C yberplex Inc. 6/30/2009 T S X :C X TS X C AD C anada 1 73. 3 90. 8 9.8 10. 8% 0. 6x 5. 4x NA
DADA S pA 6/30/2009 C M: DA CM E UR Italy 6. 42 149. 2 236.8 31. 1 13. 1% 0. 8x 6. 3x NA
DXN Holdings B hd 5/31/2009 DX N K LS E MY R Ma la ys ia 0. 57 36. 9 76. 3 11. 0 14. 4% 0. 7x 4. 7x 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. 06 4.2 1. 0 (1.4) NM 6. 3x - 7
DigitalT own, Inc. 5/31/2009 DG T W OT C B B US D United S ta tes 1. 75 47. 9 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. 44 23. 6 0. 6 (3.4) NM 42.3x - NA
E olith C o. Ltd. 12/31/2008 A041060 K OS E KR W S outh K orea 1,035 60. 8 14. 9 (3.5) -23. 6% 4. 2x - 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. 27 62. 0 5. 3 (5.1) -95. 2% 10.1x - NA
F rogs ter Interactive P ictures AG 12/31/2008 FRG XT R A E UR G ermany 19. 20 69. 5 3. 3 (6.3) NM 20.6x - NA
G ama nia Digita l E ntertainment C o., Ltd. 6/30/2009 6180 GTS M TWD T aiwa n 50. 40 233. 1 138.9 24. 6 17. 7% 1. 5x 8. 6x NA
G ameOn C o Ltd. 6/30/2009 3812 TS E JPY J a pan 100,600 104. 5 78. 7 19. 3 24. 5% 0. 4x 1. 7x NA
G eoS entric O yj 6/30/2009 G E O 1V HL S E E UR F inland 0. 04 51. 5 5. 3 (17. 1) NM 9. 7x - 115
G iant Interactive G roup, Inc. 6/30/2009 GA NY S E US D C hina 8 1,732. 3 198.5 124.1 62. 5% - - 1, 570
G iga Media Ltd. 3/31/2009 G IG M Na s daqG S US D T aiwa n 4. 79 261. 1 183.6 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. 80 50. 0 47. 5 16. 1 33. 9% - - 469
G ree, Inc. 6/30/2009 T S E : 3632 TS E JPY J a pan 8,120 1,953. 5 149.9 90. 1 60. 1% 12.3x 20. 4x NA
G ungHo O nline E ntertainment, Inc. 6/30/2009 3765 OS E JPY J a pan 240,000 295. 5 114.9 25. 5 22. 2% 2. 3x 10. 3x NA
HanbitS oft, Inc. 6/30/2009 A047080 K OS E KR W S outh K orea 4,010 71. 3 58. 8 1.4 2.3% 1. 0x 42. 5x NA
IAC /InterActiveC orp. 6/30/2009 IAC I Na s daqG S US D United S ta tes 18. 78 2,486. 5 1, 392. 3 52. 7 3.8% 0. 5x 14. 2x 3, 200
IAS E nergy, Inc. 1/31/2009 IAS A. E OT C B B US D C anada 0. 14 9.5 0. 0 (0.8) NM - - NA
is eemedia Inc. 3/31/2009 IE E T S XV C AD C anada 0. 05 2.4 1. 6 (5.1) NM 0. 9x - NA
J umbuck E nterta inment Limited 6/30/2009 AS X :J MB AS X AUD Aus tralia 0. 40 16. 7 16. 4 7.0 42. 8% 0. 6x 1. 5x 79
K AB Dis tribution Inc. 6/30/2009 T S X :K AB TS X C AD C anada 1 84. 6 68. 6 4.0 5.8% - - NA
K ings oft C o. Ltd. 6/30/2009 3888 S E HK HK D C hina 9 1,225. 4 139.1 61. 4 44. 2% 9. 0x 20. 3x 2, 271
Lingo Media C orporation 3/31/2009 T S X V :LM T S XV C AD C anada 1. 00 11. 6 1. 0 (1.6) NM 10.9x - 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. 17 20. 0 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 4.1 0. 1 (2.5) NM - - 14
Mixi, Inc. 6/30/2009 2121 TS E JPY J a pan 538000. 00 891. 0 131.5 44. 4 33. 8% 5. 9x 17. 5x NA
Modern T imes G roup Mtg AB 6/30/2009 MT G B OM SEK S weden 300. 00 2,778. 9 1, 929. 6 296.5 15. 4% 1. 7x 11. 3x 2, 969
MO K O .mobi Limited 12/31/2008 MK B AS X AUD Aus tralia 0. 08 5.7 1. 2 (2.5) NM 3. 6x - NA
Myriad G roup AG 12/31/2008 MY R N SWX C HF S witzerland 4. 56 91. 7 40. 0 0.8 1.9% 2. 5x - 405
NE O W IZ G ames C orpora tion 12/31/2008 A095660 K OS E KR W S outh K orea 38050. 00 649. 4 200.8 53. 9 26. 8% 3. 2x 11. 9x NA
NetDragon W ebS oft, Inc. 6/30/2009 777 S E HK HK D C hina 6 400. 3 89. 3 30. 0 33. 6% 2. 9x 8. 7x 2, 426
Neteas e. com Inc. 6/30/2009 NT E S Na s daqG S US D C hina 42. 52 5,503. 2 472.4 297.4 63. 0% - - 3, 109
NeuLion Incorporated 6/30/2009 T S X :NLN TS X C AD C anada 1. 10 116. 7 21. 5 (13. 0) -60. 3% 5. 0x - 237
NeXplore C orporation 6/30/2008 NX P C OT C P K US D United S ta tes 1 30. 7 0. 7 (6.2) NM 49.2x - NA
Ngi G roup Inc. 6/30/2009 2497 TS E JPY J a pan 27800. 00 37. 0 89. 4 6.6 7.4% - - NA
Northgate T echnologies L imited 6/30/2009 590057 BSE INR India 49. 95 35. 8 81. 9 (40. 9) -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 34. 73 1,950. 1 785.7 205.1 26. 1% 2. 5x 9. 6x 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. 80 233. 3 191.7 5.3 2.8% 0. 6x 23. 4x NA
P erfect W orld C o. , Ltd. 6/30/2009 PWRD Na s daqG S US D C hina 39. 83 1,958. 9 255.6 142.2 55. 6% 0. 6x 1. 0x 2, 096
P NI Digital Media Inc. 6/30/2009 T S X V :P N T S XV C AD C anada 1. 75 55. 7 21. 3 2.3 11. 0% 2. 5x 23. 0x 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. 7 150.5 19. 7 13. 1% 0. 0x 0. 2x NA
S handa Interactive E nterta inment Ltd. 6/30/2009 S NDA Na s daqG S US D C hina 49. 69 3,317. 7 629.0 296.7 47. 2% - - 3, 124
S hutterfly, Inc. 6/30/2009 S FLY Na s daqG S US D United S ta tes 13. 34 339. 6 218.6 27. 3 12. 5% 1. 3x 10. 1x 514
S K C ommunications C o., Ltd. 12/31/2008 A066270 K OS E KR W S outh K orea 9000. 00 305. 8 186.6 12. 1 6.5% 1. 6x 25. 2x 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. 00 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. 56 24. 8 0. 0 (5.6) NM - - NA
S ohu. com Inc. 6/30/2009 S O HU Na s daqG S US D C hina 62. 63 2,400. 9 485.1 209.6 43. 2% 3. 9x 9. 0x 3, 197
S park Networks , Inc. 6/30/2009 L OV AME X US D United S ta tes 2 46. 3 50. 5 10. 8 21. 3% 0. 9x 4. 1x 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 128 29, 970.5 1, 391. 6 680.3 48. 9% 23.7x 48. 4x 6, 421
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. 72 193. 7 250.6 85. 5 34. 1% - - 1, 626
T heS treet. com, Inc. 3/31/2009 TS CM Na s daqG M US D United S ta tes 2. 43 74. 4 67. 0 1.9 2.9% 0. 1x 5. 1x 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. 47 80. 7 216.6 (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 24. 2 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 7. 32 613. 7 949.8 203.2 21. 4% 0. 9x 4. 3x 1, 469
UOMO Media, Inc 4/30/2009 UO MO OT C B B US D C anada 0 12. 0 0. 9 (0.5) -53. 2% 14.4x - NA
V alueC lick Inc. 6/30/2009 V C LK Na s daqG S US D United S ta tes 10 895. 1 563.6 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 4.1 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. 89 34. 3 22. 4 2.2 9.9% - - 328
W izzard S oftwa re C orporation 6/30/2009 W ZE AME X US D United S ta tes 0. 43 21. 7 5. 3 (4.5) -84. 9% 4. 3x - 110
W orlds . com Inc. 6/30/2009 W DDD OT C B B US D United S ta tes 0. 10 5.2 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 32. 25 243. 7 57. 6 16. 6 28. 8% 3. 3x 11. 6x 246
Y eda ngO nline C orp. 12/31/2007 A052770 K OS E KR W S outh K orea 9,080 110. 4 55. 6 12. 0 21. 6% 2. 1x 9. 9x NA
Y nk K orea Inc. 12/31/2008 A023770 K OS E KR W S outh K orea 4,260 18. 5 11. 5 1.2 10. 5% - - NA
High 29, 970.5 1,929. 6 680. 3 63. 0% 49.2x 48. 4x 6, 421
Low 0.0 0. 0 -40.9 -98. 9% 0. 0x 0. 2x 1
Average 739.6 161.4 38.8 6.0% 6.0x 12.7x 890
Median 65. 7 57.6 2. 3 13. 1% 2. 1x 10. 0x 376

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 )
Slow start to financing activity for new school year: W ith only five financing transactions to start September, the largest
transaction thus far is the $5 million financing for YuMe (Advertising). The total for September so far is just $12.2 million,
averaging $2.4 million per financing. Total capital raised in August was $208.5 million, averaging $7.7 million (27 deals),
July on 35 transactions was $191.4 million, averaging $5.5 million, and June (42 deals) was $204.7 million (averaging $4.9
million).

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

9.7
10.0
(US$m)

(US$m)
200.0
7.7
8.0
7.0 7.0 7.1
6.5 6.6
150.0 6.2
5.5 6.0
4.9

100.0
4.0

2.4
50.0
2.0

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

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

Figure 2. Financings, Last Twelve Months

Source. Company reports
 (US$m)

0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0
200.0
Skype
People Media
Super Rewards

Source. Company reports

Turbine
Friends Reunited
AdLink Internet Media
Pandora Media
Smith & Tinker
NowPublic
iLike
xoopit
MediaMath
Kontera Ltd.

Figure 3. Capital Market Activity, Last Three Months

Ning
Mint
RichRelevance
QuickPlay Media
Traffiq
Causes
Edo Interactive
Bill.com
Outspark
ConnectEdu
Acquia, Inc
SBNation
InnoCentive
OneRiot
Balihoo
Metaversum
iMemories
additional details on financings, see Figures 23 and
transaction this year was announced on September
eBay sells Skype in largest M&A deal this year:

million note. In other acquisition news, Canadian

Invodo
Boxee
Polyvore
Fanbase
MOG
Jambool
YuMe
Quikr India Pvt. Ltd.
OPEN Sports network
Nexage
StyleCaster
TweetDeck
OurStage
Z2Live
24 (at end of note).

KODA
Scoreloop
Busca
ProtonMedia
MashLogic
Akademos
Roblox
Greystripe
iSocket
Financing & M/A Summary - Last Three Months

Tremor Media
iLoop Mobile
Comunitae
RightsFlow
Aloqa
Lat49
Plista
FourSquare
EduFire
ChessCube
Thread
Tributes.com
CoTweet
Cognitive Match Limited
Cellufun
Clikthrough
Linksify
People Capital
BookFresh
iSyndica
Masher Media
Gigpark
Jul-09
Aug-09
Sep-09
Page 4

W hile financing activity has been slow so far, by far the largest M&A
1, with eBay selling 65% of Skype for $1.9 billion in cash plus a $125
company NowPublic was acquired for a rumoured $25 million. For
 Page 5

Advertising remains the most active sector: Advertising related companies continue to see the most activity by number
of transactions (10), followed by the Gaming sector (seven transactions) and the Social Network sector, also with seven
transactions (Figure 4). The $2.0 billion acquisition of Skype skews the dollars transacted to the SMS/Voice segment.

Capital Market Activity by Sector - Last Three Months

200.0

180.0

160.0

140.0

120.0
(US$m)

100.0

80.0

60.0

40.0

20.0
2,025.0 100.1 90.5 80.0 76.0 64.9 64.5 40.0 37.3 19.3 18.2 17.7 12.5 12.0 10.0 8.6 8.0 7.0 5.0 4.1 4.0 3.2 1.0 0.5 0.5
0.0
Comment/Reputation
Communities
Gaming

Online Dating

Online Calendar
Mobile

Online Learning

Enterprise

Media

Microblog

Online Lending
Music
SMS/Voice

Infrastructure

Blog

Search

Classified

Mobile Ad
Social Networks

Virtual Goods
Advertising

Virtual World

Crowdsourced

Video

Analytics
Vertical
Content

# companies
1 10 7 1 7 4 5 5 3 3 4 4 1 3 3 2 1 1 1 1 2 1 1 1 1

Figure 4. Capital Market Activity, by Sector, Last Three Months

Source. Company reports
 Page 6

C A P I T A L M A R K E T S A C T I V I T Y (P R I C E P E R F O R M A N C E )
Web 2.0 index continues to outpace NASDAQ recovery: Our W eb 2.0 index (market-cap weighted) essentially mirrored
the performance of the NASDAQ composite index from mid-2008 until earlier this year. However, the index has recently
had a much stronger recovery relative to the NASDAQ index (Figure 5).

Web 2.0 Index Price Performance

160

140

120

100

80

60

40

20

0
9/8/2008

9/22/2008

10/6/2008

10/20/2008

11/3/2008

11/17/2008

12/1/2008

12/15/2008

12/29/2008

1/12/2009

1/26/2009

2/9/2009

2/23/2009

3/9/2009

3/23/2009

4/6/2009

4/20/2009

5/4/2009

5/18/2009

6/1/2009

6/15/2009

6/29/2009

7/13/2009

7/27/2009

8/10/2009

8/24/2009
^COMP - Share Pricing Index: Web 2.0 (Market Cap)

Figure 5. Web 2.0 Price Performance

Source. Capital IQ
 Page 7

A mixed price performance week: Twenty-seven of the companies in our universe had positive stock price performances
over the past week (for stocks with prices greater than $1) (Figure 6), with 21 companies showing negative returns on the
week. DigitalTown (OTCBB:DGTW ) led the group with a 25.0% return, while Cyberplex (TSX:CX) had the worst return,
dropping 14.8% in the week.

1 Week P rice P erformance

DigitalTow n, Inc. 25.0%
Northgate Technologies Limited 23.6%
NEOWIZ G ames Corporation 19.1%
Chines e G amer International 13.5%
X ING A G 11.2%
Tencent Holdings Ltd. 11.0%
Eolith Co. Ltd. 10.7%
United Online Inc. 7.2%
Frogs ter Interactive Pictures A G 6.1%
G ravity Co., Ltd 5.9%
My riad G roup A G 5.8%
K ings oft Co. Ltd. 4.1%
G ungHo Online Entertainment, Inc. 3.4%
Modern Times Group Mtg A B 3.1%
Changy ou.com Limited 2.9%
Y nk K orea Inc. 2.4%
Y edangOnline Corp. 2.0%
A Q Interactive, Inc. 2.0%
Tree.Com, Inc. 1.2%
NetDra gon WebS oft, Inc. 1.2%
Neteas e.com Inc. 1.1%
HanbitS oft, Inc. 0.9%
Openw ave S y s tems Inc. 0.7%
IA C/InterA ctiveCorp. 0.6%
GigaMedia Ltd. 0.4%
Perf ect World Co., Ltd. 0.3%
S ohu.com Inc. 0.3%
Quepas a Corp. 0.0%
LookS mart, Ltd. 0.0%
G amania Digital Entertainment Co., 0.0%
DA DA S pA -0.3%
Webz en Inc. -1.0%
G iant Interactive G roup, Inc. -2.0%
S park Netw orks , Inc. -2.2%
V alueClick Inc. -2.3%
Open Tex t Corp. -2.4%
G ree, Inc. -2.4%
S handa Interactive Entertainment -2.9%
S K Communications Co., Ltd. -3.2%
CDC Corp. -3.3%
PNI Digital Media Inc. -3.3%
G ameOn Co Ltd. -3.5%
TheS treet.com, Inc. -3.6%
A ctoz S oft Co., Ltd. -5.8%
The9 Limited -5.9%
NeuLion Incorporated -8.3%
Ngi G roup Inc. -8.9%
Fluid Mus ic Canada, Inc. -9.3%
S hutterfly , Inc. -9.7%
Mix i, Inc. -10.6%
Cy berplex Inc. -14.8%
-20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

Figure 6. 1-Week Price Performance

Source. Capital IQ

P U B L I C C O M P A N Y I N D U S T R Y N E W S (P A R T N E R S H I P S , F I N A N C I A L R E S U L T S , N E W P R O D U C T S )
K ey Developments
C ompany
L ingo Media C orporation (TS XV: L M)
Northgate Tec hnologies L imited
(B S E : 590057)
Myriad G roup AG (S W X: MYR N)
B right Things plc (AIM: B G T)
C L IC K E R Inc . (OTC B B : C L K Z)
K AB Dis tribution Inc . (TS X: K AB )
B eyond C ommerce, Inc.
(OTC B B : B YOC )
S handa Interac tive E ntertainment L td.
(Nas daqG S : S NDA)
DigitalTown, Inc . (OTC B B : DGTW ); The DigitalT own Inc. Announces P a rtners hip with T he Active
Ac tive Network, Inc.
S handa Interac tive E ntertainment L td.
(Nas daqG S : S NDA)
S handa Interac tive E ntertainment L td.
(Nas daqG S : S NDA)
C hangyou.c om L imited
(Nas daqG S : C YOU)
Neteas e.c om Inc . (Nas daqGS : NTE S )
NetDragon W ebS oft, Inc . (S E HK : 777)
S handa Interac tive E ntertainment L td.
(Nas daqG S : S NDA)
Figure 7. Key Developments
Source. Capital IQ
Page 8
Headline Notes
L ingo Media C orporation R eports Una udited Lingo Media C orpora tion reported una udited cons olida ted ea rnings res ults for the s econd qua rter and s ix months ended J une 30, 2009. F or
C ons olida ted E a rnings R es ults for the S econd Q ua rter the quarter, the compa ny's net los s wa s C AD 691, 389 compa red with C AD 491, 229 for the s a me period a year a go. L os s per s ha re from
a nd S ix Months E nded J une 30, 2009 continued opera tion wa s C AD 0. 06 compa red with C AD 0. 04 for the s a me period a yea r a go. T he compa ny's revenue was C AD 654, 358
compa red with C A D 393, 709 for the s a me period a yea r a go. L os s from continuing operations was C AD 691, 389 compa red with C AD
392, 010 for the s a me period a yea r a go. Net cas h flow provided by opera ting a ctivities wa s C AD 135, 926 compa red with net ca s h flow us ed
in opera ting a ctivities of C AD 235, 683 for the s a me period a year a go. T he compa ny inves ted on purcha s e of property a nd equipment wa s
C AD 23, 818 compa red with C AD 147 for the s ame period a yea r ago.
F or the s ix months , the compa ny's net los s wa s C AD 795, 416 compa red with C AD 944, 782 for the s ame period a yea r a go. L os s per s ha re
from continued opera tion wa s C AD 0. 09 compa red with C AD 0. 08 for the s a me period a yea r a go. T he compa ny's revenue wa s C AD
709, 678 compa red with C AD 393, 709 for the s a me period a yea r a go. L os s from continuing opera tions wa s C AD 1, 146, 524 compa red with C A
Northga te T echnologies Limited, B oa rd Meeting, S ep 01, Northga te T echnologies L imited, B oa rd Meeting, S ep 01, 2009 Agenda: T o convene a nnua l genera l meeting of the compa ny on S eptember
2009 30, 2009 and to clos e the regis ter of members a nd s ha re tra ns fer books of the compa ny from S eptember 28, 2009 to S eptember 30, 2009
inclus ive of both da ys for the purpos e of a nnua l genera l meeting of the compa ny.
Myria d G roup Appoints J a mes B odha as New C hief Myria d G roup AG a nnounced the a ppointment of J a mes B odha a s its new C hief F ina ncia l Officer (C F O), effective S eptember 2, 2009.
F ina ncial O fficer B ringing both s ignifica nt interna tional experience a nd deep indus try knowledge of the mobile s ector, his prima ry res pons ibility will be to
ens ure that Myria d's fina ncia l opera tions ma na gement evolves in line with the growth of the compa ny. P rior to joining Myria d, B odha wa s
G roup C F O a t Aircom Interna tiona l. During his more tha n 3 yea rs in that role, he wa s res pons ible for building a nd lea ding a globa l finance
organis a tion in line with tha t compa ny's 1, 300 s ta ff in 18 worldwide offices , a nd improving the compa ny's fina ncial s ys tems a nd interna l
control proces s es .
B right T hings plc a nnounced it expects to receive £0. 94 B right T hings plc (AIM: B G T ) a nnounced a s ubs equent placing of 75, 200, 000 common s ha res a t £0. 0125 per s hare for gros s proceeds of
million in funding. £0. 94 million on S eptember 2, 2009. Dominic W hea tley, C hief E xecutive Officer of the compa ny, and Ia n L ivings tone, C ha irma n of the
compa ny will pa rticipa te in the tra ns a ction and will hold 69, 005, 102 s ha res , repres enting 25. 5% s ta ke a nd 11, 998, 880 s hares , repres enting
4. 4% s ta ke res pectively. Ins titutiona l inves tors a ls o pa rticipa ted in the tra ns a ction. As ta ire S ecurities P lc will a ct a s a broker to the compa ny.
T he s ha res ha ve been pla ced to the ins titutiona l inves tors by As ta ire S ecurities P lc a nd S ocialG O s ta ff members . T he s ha res will be
s ubs equently lis ted on London S tock E xcha nge AIM Ma rket.
C L IC K E R Inc. Announces Ma na gement C ha nges E ffective Augus t 28, 2009, Ma nu O hri res igned a s the C hief E xecutive O fficer of C L IC K E R Inc. O n S eptember 1, 2009, Mr. Albert Aimers
wa s a ppointed a s the C ompa ny's Interim C hief F ina ncia l O fficer. Mr. Aimers ha s been C ha irma n of the B oa rd a nd C hief E xecutive Officer of
the C ompa ny s ince J a nua ry 2006. F rom 2003-2006, Mr. Aimers wa s P res ident a nd C E O of Digita l W a llS treet Inc. a nd the founder of
W a lls t. net a nd F ina ncia l P ublis hing compa ny.
K AB Dis tribution Inc. Decla res C a s h Dis tribution P a yable K AB Dis tribution Inc. a nnounced tha t a ca s h dis tribution of $0. 65 per common s ha re will be pa id on S eptember 22, 2009 to s ha reholders of
on S eptember 22, 2009 record on S eptember 17, 2009 a s a return of ca pita l, s ubject to court a pprova l.
B eyond C ommerce L a unches in Aus tra lia B eyond C ommerce Inc. a nnounced its new geogra phica lly-ta rgeted online s ervices benefit loca l bus ines s es a cros s the United S ta tes a nd
now Aus tra lia . Around Aus tra lia , loca l compa nies , often s ma ll a nd medium enterpris es , will benefit from the interna tiona l la unch of US -ba s ed
Loca lAdL ink's geogra phically-targeted online loca l a dvertis ing s ervices .
S ha nda Intera ctive E nterta inment L td. R eports Una udited S handa Intera ctive E nterta inment L td. reported una udited cons olida ted ea rnings res ults for the s econd qua rter a nd s ix months ended J une
C ons olida ted E a rnings R es ults for the S econd Q ua rter 30, 2009. F or the qua rter, the compa ny reported opera ting profit of R MB 513. 4 million, income from opera tion of R MB 513. 4 million, net
a nd S ix Months E nded J une 30, 2009 income of R MB 430. 7 million, net income a ttributable to ordina ry s ha reholders of R MB 426. 9 million or R MB 3. 07 diluted per s ha re on tota l
net revenues of R MB 1, 237. 2 million a ga ins t opera ting profit of R MB 335. 6 million, income from opera tion of R MB 335. 6 million, net income
of R MB 281. 9 million, net income a ttributa ble to ordina ry s ha reholders of R MB 279. 8 million or R MB 1. 90 diluted per s ha re on tota l net
revenues of R MB 837. 6 million for the s a me period a yea r a go. According to Non-G AAP , opera ting profit of R MB 531. 5 million, net income
attributa ble to ordina ry s ha reholders of R MB 445. 0 million or R MB 6. 40 diluted per s ha re a ga ins t opera ting profit of R MB 350. 7 million, net
income a ttributa ble to ordinary s ha reholders of R MB 294. 9 million or R MB 4. 00 diluted per s ha re for the s a me period a yea r a go.
F or the s ix months , the compa ny reported income from opera tion of R MB 969. 1 million, net income of R MB 797. 5 million, net income a ttributa
On S eptember 01, 2009, the B oard of Directors of Digita lT own Inc. a pproved a L etter of Intent to move forwa rd with a partners hip with T he
Network, Inc Active Network Inc. T he L OI calls for Digita lT own a nd Active to pa rticipa te in J oint P romotion, J oint T echnology, New Hyper-L oca l A d
T echnology a nd revenue s ha ring of the Digita lT own 14, 700 on-line content a nd news hub for s chool s pirit s ites ; this will expa nd to a ll of
Digita lT own’s 27, 000 s ites . In S ocia l Networking-Active will es ta blis h a DigitalT own-bra nded and ta ilored s ection of the Active community,
providing a common interfa ce for current Active members as well a s new Digita lT own members . In C ontent-Active will provide content tha t
will include H. S . footba ll, ba s ketball, la cros s e a nd more with s chedules , s cores , ra tings , ra nkings , game previews and recaps a s s ocia ted with
ea ch individua l H. S . tea m.
S ha nda Intera ctive Mulls Acquis itions It wa s reported tha t S ha nda Intera ctive E nterta inment L td. pla ns to ra is e a s much a s $800 million in a U. S . IP O for its games unit. C hen
T ia nqia o, S ha nda ’s founder s aid in the pa s t tha t he would like to ultima tely tra ns form his compa ny into a divers ified media firm. T he firm s a id
tha t it will us e the IP O proceeds to fund a cquis itions a nd joint ventures , a s well a s for ca pital expenditure.
S ha nda Intera ctive E nterta inment L td. P rovides E a rnings S handa Intera ctive E nterta inment L td. provided ea rnings guida nce for the third qua rter of 2009. T he compa ny expected tha t cons olida te net
G uida nce for the T hird Q uarter of 2009 revenues for third qua rter of 2009 to increa s e by a rate in the ra nge of 8% to 11% qua rter over qua rter. T he company expect opera ting
ma rgin for the third qua rter 2009 to be s imila r to tha t of s econd qua rter 2009, both on a non-G AAP ba s is .
C ha ngyou. com L imited ha s filed a S helf R egis tra tion in C ha ngyou. com L imited ha s filed a S helf R egis tra tion in the a mount of $381. 30 million.
the a mount of $381. 30 million.
Netea s e. com Inc. , Annua l G eneral Meeting, S ep 04, Neteas e. com Inc. , Annua l G enera l Meeting, S ep 04, 2009, at 10: 00 C C T -C hina C oa s t, US S R Zone 7. L oca tion: 26/F , S P T ower D, T s inghua
2009 S cience P a rk B uilding 8, No. 1 Zhonggua ncun E a s t R oad, Ha idia n Dis trict, B eijing, P eople's R epublic of C hina 100084, C hina . Agenda : T o
re-elect s even directors to s erve for the ens uing yea r or until their s ucces s ors a re elected a nd duly qua lified; to ra tify the a ppointment of
P ricewa terhous eC oopers Zhong T ia n C P As L imited compa ny a s independent a uditor for the fis ca l yea r ending December 31, 2009; a nd to
tra ns a ct s uch other bus ines s a s ma y properly come before the 2009 a nnua l genera l meeting of s ha reholders or a ny a djournment or
pos tponement thereof.
NetDra gon W ebS oft, Inc. , 0. 082 (HK D), C a s h Dividend, NetDra gon W ebS oft, Inc. , 0. 082 (HK D), C as h Dividend, S ep-07-2009
S ep-07-2009
S ha nda Intera ctive E nterta inment L td. Announces B oa rd S handa Intera ctive E nterta inment L td. a nnounced the res igna tion of B runo W u from the B oa rd of Directors of the C ompa ny, effective
C ha nges S eptember 1, 2009. C oncurrently, the C ompa ny a nnounced the a ppointment of Mr. K a i Zha o to the B oa rd of Directors of the C ompa ny,
effective immedia tely. Mr. Zha o previous ly s erved a s dea n of the J ourna lis m S chool of F uda n Univers ity, s ecreta ry genera l of the C hina
C ommunis t P a rty (C C P ) committee of W enhui-X inmin United P res s News pa per G roup, chief editor of L ibera tion Da ily a nd s ecreta ry genera l
of the C C P committee of S ha ngha i Municipa l R a dio, F ilm a nd T elevis ion B urea u a s well a s in va rious ma na gerial roles a t S ha ngha i
Municipa l R a dio a nd T elevis ion B urea u, Orienta l R a dio S ta tion, S ha ngha i P eople's R a dio S ta tion a nd Qingha i Da ily.
 Page 9

VALUATION
Online Gaming companies lead market-cap charts: Thirteen companies in our W eb 2.0 universe top US$1 billion in
market capitalization (Figure 8). 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 Holdings with a market cap near
US$30 billion.

Market C ap (US D m)
Tencent Holdings L td. 29970. 5
Neteas e.c om Inc. 5503.2
S ha nda Interactiv e Entertainment L td. 3317.7
Modern Times Group Mtg A B 2778.9
IA C/InterA ctiveCorp. 2486.5
S ohu.c om Inc. 2400.9
Changy ou.com Limited 2147.8
Perfect World Co. , L td. 1958.9
G ree, Inc. 1953.5
Open Tex t Corp. 1950.1
Gia nt Interac tive Group, Inc. 1732.3
K ings of t Co. L td. 1225.4
Chines e Gamer Internationa l 1180.6
V a lueClick Inc. 895.1
Mix i, Inc. 891.0
NEOWIZ Games Corpora tion 649.4
United Online Inc. 613.7
NetDra gon WebS of t, Inc. 400.3
S hutterf ly, Inc. 339.6
S K Communica tions Co. , L td. 305.8
G ungHo Online Enterta inment, Inc. 295.5
Giga Media L td. 261.1
CDC Corp. 252.2
XING A G 243.7
Openw av e S y s tems Inc. 233.3
G ama nia Digital Entertainment Co., 233.1
The9 Limited 193.7
DA DA S pA 149.2
OA O R B C Inf ormation S y s tems 145.7
A c toz S of t Co., L td. 124.8
NeuL ion Incorporated 116.7
Y eda ngOnline Corp. 110.4
G ameOn Co L td. 104.5
Myriad Group A G 91.7
K A B Dis tribution Inc. 84.6
Tree. Com, Inc. 80.7
TheS treet.com, Inc. 74.4
Cy berplex Inc. 73.3
HanbitS of t, Inc. 71.3
Frogs ter Interac tive Pic tures A G 69.5
Fluid Mus ic Canada, Inc. 62.0
Eolith Co. L td. 60.8
PNI Digital Media Inc. 55.7
GeoS entric Oy j 51.5
Grav ity Co., L td 50.0
DigitalTow n, Inc. 47.9
S park Netw orks , Inc. 46.3
Ngi Group Inc. 37.0
DXN Holdings B hd 36.9
Northgate Technologies Limited 35.8
Webz en Inc. 34.3
NeXplore Corpora tion 30.7
A Q Intera ctiv e, Inc. 29.8
S ocia lw is e, Inc. 24.8
Dolphin Digita l Media, Inc. 23.6
W iz z a rd S of tw are Corpora tion 21.7
LookS ma rt, L td. 20.0
B roadWebA s ia Inc. 19.5
Y nk K orea Inc. 18.5
Quepa s a Corp. 17.8
J umbuck Entertainment Limited 16.7
A c celeriz e New Media, Inc. 15.8
UOMO Media, Inc 12.0
L ingo Media Corpora tion 11.6
S pec trumDNA , Inc. 10.7
B ey ond Commerc e, Inc. 9.7
IA S Energy, Inc. 9.5
Ex tens ions , Inc. 8.9
B right Things plc 6.1
CornerWorld Corpora tion 5.7
MOK O.mobi Limited 5.7
S NA P Intera ctiv e, Inc. 5.4
Worlds .c om Inc. 5.2
DigitalPos t Intera ctiv e, Inc. 4.2
V OIS , Inc. 4.1
Magnitude Information S y s tems Inc. 4.1
Wooz yFly, Inc. 2.6
is eemedia Inc. 2.4
B etaw a ve Corpora tion 2.0
Wy nds torm Corpora tion 1.8
Liv eWorld Inc. 1.5
B igs tring Corp. 1.3
Unis erve Communications Corp. 1.0
A s s oc ia ted Media Holdings Inc. 0.6
CL ICK ER Inc. 0.6
China G atew ay Corpora tion 0.3
The Parent Compa ny 0.3
Total S port Online A S 0.1
S NM G loba l Holdings 0.0
Dibz International, Inc. 0.0
S ocia l Media V enures , Inc. 0.0
0 500 1,000 1,500 2,000 2, 500 3,000 3,500 4,000

Figure 8. Market Cap Ranking

Source. Capital IQ
 Page 10

TEV/Revenue (LTM) averages 6.0x: The overall average TEV/Revenue (LTM) multiple for our group is 6.0x (vs. 5.3x last
week) (Figure 9). Three companies trade at more than 25x revenue – Bigstring Corp. (OTCBB:BSGC) at 37.5x, Dolphin
Digital Media, Inc. (OTCBB:DPDM) at 42.3x, and NeXplore Corp (OTCPK:NXPC). The median is only 2.1x. Note that we
exclude multiples greater than 50x. Thirty companies have multiples under 1.5x.

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

60. 0

49.2
50. 0

42.3

40. 0 37.5

30. 0
23.7
22.4
19.820.6
20. 0
15.6
14.4
12.3
10.9
10.1
9.0 9.7
A10. 0
verage, 6.0 7.8
5.9 6.3
4.2 4.3 4.5 4.6 4.7 5.0
3.2 3.3 3.6 3.9 4.1
1.3 1.3 1.3 1.5 1.5 1.6 1.7 2.1 2.3 2.5 2.5 2.5 2.9
0.1 0.1 0.2 0.2 0.3 0.4 0.4 0.4 0.5 0.6 0.6 0.6 0.6 0.7 0.7 0.8 0.9 0.9 0.9 0.9 1.0 1.0 1.1 1.1
0. 0

NE O WIZ G ames C orporation

J umbuc k E nterta inment L imited

MO K O .mobi L imited

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

G a mania Digital E ntertainment C o.,

G ungHo 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 hangy ou.com L imited

G a meO n C o Ltd.
T ree.C om, Inc.

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

NeX plore 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 .

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.

XIN G AG

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 9. 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 10 shows the average TEV/Revenue multiples by stock exchange. The OTCBB has the largest
number of companies (19), trading at an average multiple of 12.4x (vs. 12.7x last week). On a geographic basis, the
United States has the most companies (39), trading at an average of 7.6x revenue (vs. 5.9x last week) (Figure 11). Ten of
the companies are Canadian (average 4.6x revenue).

Average TEV/LTM Revenue - By Exchange Average TEV/LTM Revenue - By Country

25.0 22.4 25.0 22.4

20.0 20.0

15.0 12.4
12.0 15.0
(x)

11.9 12.0
(x)

10.0 10.710.1 9.7

9.7 10.0 8.0 7.6
5.2 4.74.6 3.6 7.5
5.0 2.6 2.5 2.3 2.2 1.9 1.7 4.6 4.6
2.1 5.0 4.2
0.8 0.7
0.0 0.4 0.3 0.0 2.5 2.2 2.1 1.7
0.8 0.7
OTCNO
OTCPK
OTCBB

GTSM

NasdaqGM
SEHK

HLSE

TSE

OSE
KOSE

NasdaqGS

RTS
OM
CM

0.7 0.4 0.0

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 2 3 2 11 1 4 5 1 4 2 1 1 6 2 14 1 1 1 1 5 1

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

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

Source. Capital IQ
 Page 11

TEV/EBITDA (LTM) averages 12.7x: The average multiple for the 35 companies with positive EBITDA (and multiples
under 100x) is 12.7x LTM EBITDA (vs. 12.4x last week), led by Tencent Holdings (SEHK-700) 48.4x multiple (Figure 12).
Twelve companies have EBITDA multiples under 7x. The median multiple is 9.9x (vs. 9.8x last week).

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

60. 0

48. 4
50. 0
42. 5

40. 0
35. 4

30. 0
25. 2
23. 0 23. 4
20. 3 20. 4
20. 0 17. 5
A verage, 12.7 14. 2 14. 5
12. 7
11. 3 11. 6 11. 9
8. 7 9. 0 9. 6 9. 9 9. 9 10. 1 10. 3
7. 7 8. 6
10. 0 6. 3
4. 0 4. 1 4. 3 4. 7 5. 1 5. 4
3. 7
1. 0 1. 5 1. 7
0. 0

NE O WIZ G ames C orporation

J umbuck E ntertainment L imited

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 12. TEV/EBITDA Ranking

Source. Capital IQ

TEV/EBITDA (LTM) by country/exchange: Figure 13 shows the average TEV/EBITDA multiples by stock exchange. The
OTCBB has the largest number of companies (19), trading at an average multiple of 4.0x. On a geographic basis, the
United States has the most companies (39), trading at an average of 9.1x EBITDA (Figure 14). Ten of the companies are
Canadian (average 12.7x EBITDA).

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

30.0 25.8 25.0
22.0
25.0
20.0
20.0 23.022.0 18.6
18.6 15.0 16.7
(x)

15.0
(x)

13.2 12.7 12.5 11.6

11.6 11.3 10.3 10.2 11.3
10.0 10.0 9.9 9.1
6.3 5.4
5.0 5.1 4.7 4.1 4.0 6.3
1.5 0.2 5.0 4.7
0.0 0.2
1.5
OTCBB
GTSM

NasdaqGM
SEHK

KOSE

TSE

OSE

NasdaqGS

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

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

Source. Capital IQ
 Page 12

P/E (LTM) averages 18.4x: The average multiple for the 33 companies with positive earnings (and multiples under 100x)
is 18.4x LTM EPS (vs. 18.1x last week), led by GungHo Online Entertainment’s (OSE:3765) 66.5x multiple (Figure 15).
Eleven companies have P/E multiples under 10x. The median is just 13.1x.

P /E L T M (x)

70.0 66.5
61.2
60.0

50.0 45.0 45.6

43.1

40.0
35.0
32.5
30.0
24.5 25.6
20.0 20.3
A verage, 18.4 18.3
20.0 16.3
13.7 14.2 14.7
11.8 12.1 12.7 13.1
9.6 10.3 10.9
10.0 6.2 6.5
4.9
2.1 2.2 2.4 2.8 3.1

0.0

NE O W IZ G ames C orporation
J umbuck E ntertainment Limited

G amania Digital E ntertainment C o., Ltd.

G ungH o O nline E ntertainment, Inc.

C hines e G amer International
DXN H oldings B hd

C hangy ou.com Limited

G iant Interactive G roup, Inc.

G ameO n C o Ltd.

Modern T imes G roup Mtg AB

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 15. P/E Ranking

Source. Capital IQ

P/E (LTM) by country/exchange: Figure 16 shows the average P/E multiples by stock exchange. The OTCBB has the
largest number of companies (19), trading at an average multiple of 14.8x. On a geographic basis, the United States has
the most companies (39), trading at an average of 13.5x earnings (Figure 17). Ten of the companies are Canadian
(average 19.5x EPS).

Average P/E - By Country

Average P/E - By Exchange 45.0 41.4
70.0 66.5 40.0
60.0 35.0
30.0
50.0
25.0 25.6 25.4
(x)

40.0 34.0 33.0 33.0 19.5

(x)

20.0
30.0 25.6 14.4 13.7
19.6 15.0 13.5 13.1
20.0 14.8
13.7 12.7 10.4 10.0 6.2
6.5 6.2 4.9 4.9
10.0 5.0 0.0
2.1
0.0 0.0 0.0 0.0
Germany
Japan

Canada

China

United

Malaysia

India
OTCBB

South
Korea
GTSM

NasdaqGM

States
OSE

SEHK

TSE

KOSE

NasdaqGS

Taiwan

Australia
OM
XTRA

AMEX

TSX

KLSE

NYSE

Sweden

Switzerland
ASX

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

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

Source. Capital IQ
 Page 13

UPCOMING EVENTS

E arnings C alendar
C ompany Date & Time Quarter C onf C all Deta ils
NA NA NA NA

Figure 18. Earnings Calendar

Source. Company reports
 Page 14

C omparable C ompany Analys is > Web 2.0

P rice P erformanc e
C ompany Name C urrency Ticker E xchange US D Market C ap ($m) C urrent P ric e 1 Wk 1 Mth 3 Mth 6 Mth 1 Yr 52 Week

Accelerize N ew Media, Inc. US D A C LZ OTCB B 15. 8 0.57 1.8% 26.7% 14.0% 62.9% -9.5% -13.6%
Actoz S oft C o., Ltd. KR W A 052790 K OS E 124.8 17, 850 -5. 8% -24.2% -35.4% 70.0% 100.6% -50.4%
AQ Interactive, Inc. JPY 3838 TS E 29. 8 51, 000 2.0% -13.0% -28.2% 61.9% -55.4% -59.8%
As s ociated Media Holdings Inc. US D A S MH OTCP K 0.6 0.01 -30.0% -30.0% 833. 3% 180.0% -30.0% -72.0%
B igs tring C orp. US D B S GC OTCB B 1.3 0.02 10.0% -12.0% -12.0% 78.9% -63.3% -68.6%
B etawave C orpora tion US D B W AV OTCB B 2.0 0.07 -6. 7% -6.7% -6. 7% -41.7% -72.0% -79.4%
B eyond C ommerce, Inc. US D B YOC OTCB B 9.7 0.21 23.5% -41.7% -79.2% -58.0% -91.6% -92.8%
B right T hings plc GBP A IM:B G T AIM 6.1 0.01 -5. 2% -8.3% 5.0% -8.3% -8.9% -44.3%
B roa dW ebAs ia Inc. US D BWBA OTCP K 19. 5 0.23 -22.8% -22.8% -54.9% -77.2% -84.7% -92.1%
C DC C orp. US D C HIN.A Na s da qG S 252.2 2.38 -3. 3% -28.5% 53.5% 213.2% -3.3% -39.3%
C hangyou.com Limited US D C YOU Na s da qG S 2,147. 8 39.05 2.9% -2.4% 0.6% NM NM -19.3%
C hina G a teway C orporation US D CGW Y OTCP K 0.3 0.02 -25.0% 650.0% 650. 0% 650.0% -50.0% -57.1%
C hines e G amer International TWD G T S M:3083 GTS M 1,180. 6 461.00 13.5% 7.2% 35.4% 223.5% 553.9% -11.2%
C LIC K E R Inc. US D C LK Z OTCB B 0.6 0.01 25.0% 25.0% 97.4% -70.0% -98.6% -98.7%
C ornerW orld C orpora tion US D CWR L OTCB B 5.7 0.06 9.1% 20.0% -33.3% -60.0% -90.2% -90.2%
C yberplex Inc. C AD T S X:C X TS X 73. 3 1.21 -14.8% -28.8% -21.9% 245.7% 101.7% -39.2%
DADA S pA E UR C M:DA CM 149.2 6.42 -0. 3% 6.1% 5.4% 38.7% -42.6% -45.2%
DXN Holdings B hd MY R DXN K LS E 36. 9 0.57 2.7% 28.4% 48.7% 101.8% 48.7% -0. 9%
Dibz Internationa l, Inc. US D DIB Z OTCP K 0.0 0.00 20.0% NM 20.0% -88.0% -97.6% -97.6%
Digita lP os t Interactive, Inc. US D DG L P OTCB B 4.2 0.06 -15.4% 22.2% 243. 8% 1275. 0% 10.0% -44.4%
Digita lT own, Inc. US D DG T W OTCB B 47. 9 1.75 25.0% 16.7% -30.0% -30.6% -56.3% -61.1%
Dolphin Digital Media, Inc. US D DP DM OTCB B 23. 6 0.44 15.8% 10.0% -26.7% -13.7% -39.7% -61.1%
E olith C o. Ltd. KR W A 041060 K OS E 60. 8 1,035.00 10.7% 27.8% 28.6% 88.2% 50.0% -10.8%
E xtens ions , Inc. US D E XT I OTCP K 8.9 0.20 150. 0% 150.0% 33.3% 0.0% 100.0% -80.2%
F luid Mus ic C a nada, Inc. C AD T S X:F MN TS X 62. 0 1.27 -9. 3% 27.0% 81.4% 284.8% -17.5% -20.6%
F rogs ter Interactive P ictures AG E UR FR G XT R A 69. 5 19.20 6.1% 32.4% 146. 2% 324.8% 224.9% -3. 4%
G ama nia Digital E ntertainment C o., Ltd. TWD 6180 GTS M 233.1 50.40 0.0% -15.9% -9. 7% 90.2% 143.5% -26.7%
G ameOn C o Ltd. JPY 3812 TS E 104.5 100, 600 -3. 5% -2.3% -6. 9% 25.8% -23.2% -34.2%
G eoS entric O yj E UR G E O 1V HL S E 51. 5 0.04 -20.0% -20.0% -20.0% 0.0% -33.3% -42.9%
G iant Interactive G roup, Inc. US D GA NY S E 1,732. 3 7.65 -2. 0% -7.6% -17.7% 7.1% -4.5% -20.1%
G iga Media Ltd. US D G IG M Na s da qG S 261.1 4.79 0.4% -8.1% -24.0% -0.8% -51.5% -58.3%
G ravity C o., L td US D GR VY Na s da qG M 50. 0 1.80 5.9% 7.1% 51.3% 181.3% 34.3% -31.6%
G ree, Inc. JPY T S E :3632 TS E 1,953. 5 8, 120 -2. 4% 2.4% 31.0% 69.2% NM -7. 2%
G ungHo Online E nterta inment, Inc. JPY 3765 OS E 295.5 240, 000 3.4% 18.8% 2.4% 108.7% 16.1% -14.3%
H anbitS oft, Inc. KR W A 047080 K OS E 71. 3 4, 010 0.9% -8.9% -13.1% 25.3% 6.9% -39.6%
IAC /InterActiveC orp. US D IAC I Na s da qG S 2,486. 5 18.78 0.6% 3.6% 15.1% 33.1% 10.2% -4. 0%
IAS E nergy, Inc. US D IAS A .E OTCB B 9.5 0.14 3.8% 10.7% -32.5% 92.9% -50.0% -51.8%
is eemedia Inc. C AD IE E T S XV 2.4 0.05 11.1% -28.6% -28.6% -37.5% -66.7% -73.7%
J umbuck E ntertainment L imited AU D A S X:J MB AS X 16. 7 0.40 8.1% 8.1% -4. 8% -11.1% -20.0% -34.4%
K A B Dis tribution Inc. C AD T S X:K AB TS X 84. 6 1 0.0% 1.6% 6.6% 71.1% -8.5% -23.5%
K ings oft C o. Ltd. HK D 3888 S E HK 1,225. 4 9 4.1% 9.5% 63.3% 223.0% 227.8% -7. 9%
L ingo Media C orpora tion C AD T S XV :L M T S XV 11. 6 1.00 11.1% -13.0% -4. 8% 14.9% -45.9% -46.2%
L iveW orld Inc. US D LV W D OTCP K 1.5 0.05 0.0% -9.1% -41.2% 25.0% -80.0% -80.0%
L ookS mart, Ltd. US D L OO K Na s da qG M 20. 0 1.17 0.0% -16.4% -10.0% 19.4% -59.7% -61.5%
Magnitude Information S ys tems Inc. US D MA G Y OTCB B 4.1 0.01 0.0% 38.5% -30.8% -52.6% -54.5% -70.0%
Mixi, Inc. JPY 2121 TS E 891.0 538,000.00 -10.6% -12.2% 21.4% 84.9% -28.5% -33.5%
Modern T imes G roup Mtg AB SEK MT G B OM 2,778. 9 300.00 3.1% 3.6% 37.9% 131.2% -3.5% -9. 9%
MO K O.mobi Limited AU D MK B AS X 5.7 0.08 2.7% 18.5% 2.7% 28.3% 126.5% -23.0%
Myria d G roup A G C HF MY R N SWX 91. 7 4.56 5.8% 6.0% -8. 8% 18.1% -46.4% -53.5%
N E OW IZ G a mes C orporation KR W A 095660 K OS E 649.4 38,050.00 19.1% 15.8% 17.1% 103.5% 242.0% -9. 4%
N etDragon W ebS oft, Inc. HK D 777 S E HK 400.3 5.87 1.2% 0.2% 14.9% 79.5% 15.6% -17.9%
N eteas e.com Inc. US D NT E S Na s da qG S 5,503. 2 42.52 1.1% -6.7% 12.1% 102.0% 84.0% -9. 4%
N euL ion Incorporated C AD T S X:NL N TS X 116.7 1.10 -8. 3% 37.5% 44.7% 189.5% NM -15.4%
N eXplore C orporation US D N XP C OTCP K 30. 7 0.55 -11.3% -15.4% 10.0% -42.1% 10.0% -62.1%
N gi G roup Inc. JPY 2497 TS E 37. 0 27,800.00 -8. 9% -13.1% -15.0% 68.3% -72.9% -78.2%
N orthga te T echnologies Limited INR 590057 BS E 35. 8 49.95 23.6% 36.1% -3. 0% 63.0% -81.4% -84.0%
O pen T ext C orp. US D OTE X Na s da qG S 1,950. 1 34.73 -2. 4% -9.3% 0.7% 15.8% 11.2% -13.6%
O penwa ve S ys tems Inc. US D OP W V Na s da qG S 233.3 2.80 0.7% 12.9% 47.4% 270.9% 95.8% -10.5%
P erfect W orld C o., L td. US D PWR D Na s da qG S 1,958. 9 39.83 0.3% 7.4% 70.5% 266.8% 82.0% -5. 0%
P N I Digital Media Inc. C AD T S XV :P N T S XV 55. 7 1.75 -3. 3% 16.7% 16.7% 9.4% -41.7% -48.5%
Q uepas a C orp. US D QP S A OTCB B 17. 8 1.40 0.0% 16.7% 77.2% 50.5% -58.2% -59.4%
O AO R B C Information S ys tems US D R BCI RTS 145.7 1.05 0.0% 16.7% 6.6% 238.7% -86.2% -86.6%
S handa Intera ctive E ntertainment Ltd. US D S NDA Na s da qG S 3,317. 7 49.69 -2. 9% -0.8% -20.2% 59.0% 77.9% -23.6%
S hutterfly, Inc. US D S FLY Na s da qG S 339.6 13.34 -9. 7% -13.4% -5. 9% 72.8% 26.6% -19.3%
S K C ommunica tions C o., L td. KR W A 066270 K OS E 305.8 9,000.00 -3. 2% -8.4% -21.7% 20.5% -26.8% -30.0%
S N AP Intera ctive, Inc. US D S TVI OTCB B 5.4 1 25.0% 25.0% -33.3% -47.4% -43.8% -53.7%
S N M G loba l Holdings US D S NMN OTCP K 0.0 0.00 -53.3% -58.0% 5.0% 110.0% -99.7% -99.8%
S ocia l Media V enures , Inc. US D S MV I OTCP K 0.0 0.15 36.4% -50.0% 1400.0% -87.5% -40.0% -97.0%
S ocia lwis e, Inc. US D S C LW OTCB B 24. 8 0.56 0.0% -26.3% -23.3% 40.0% -77.3% -78.5%
S ohu.com Inc. US D S OHU Na s da qG S 2,400. 9 62.63 0.3% -0.4% -7. 9% 42.4% 3.8% -11.6%
S park Networks , Inc. US D L OV AME X 46. 3 2 -2. 2% -11.4% -5. 9% -7.8% -48.6% -49.6%
S pectrumDNA , Inc. US D S P XA OTCB B 10. 7 0 -2. 2% 57.1% -40.5% 10.0% -62.7% -61.4%
T encent Holdings Ltd. HK D 700 S E HK 29,970.5 128 11.0% 20.0% 49.4% 166.4% 112.1% -1. 4%
T he P arent C ompany US D K IDS .Q OTCP K 0.3 0.01 -21.4% 10.0% -37.1% 10.0% -99.4% -99.4%
T he9 Limited US D NC T Y Na s da qG S 193.7 7.72 -5. 9% -21.2% -32.9% -18.7% -56.5% -61.1%
T heS treet.com, Inc. US D TS CM Na s da qG M 74. 4 2.43 -3. 6% 18.5% 24.6% 32.1% -60.9% -66.3%
T otal S port O nline AS N OK 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 TREE Na s da qG M 80. 7 7.47 1.2% -22.8% -36.3% 88.2% -6.0% -42.8%
U nis erve C ommunica tions C orp. C AD T S XV :U S 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 U NT D Na s da qG S 613.7 7.32 7.2% -18.8% 4.1% 80.3% -28.4% -32.8%
U OMO Media , Inc US D U OMO OTCB B 12. 0 0.14 -6. 7% 0.0% -30.0% 100.0% -57.6% -86.8%
V a lueC lick Inc. US D V C LK Na s da qG S 895.1 10.27 -2. 3% -3.2% -9. 0% 75.9% -6.6% -17.5%
V O IS , Inc. US D V OIS OTCB B 4.1 0.01 -16.7% -2.0% 42.9% 25.0% -68.8% -78.3%
W ebzen Inc. US D W ZE N Na s da qG M 34. 3 2.89 -1. 0% -14.1% -32.2% 133.1% 57.9% -38.2%
W izzard S oftware C orpora tion US D W ZE AME X 21. 7 0.43 -8. 5% -14.0% -36.8% -2.3% -68.6% -75.1%
W orlds .com Inc. US D W DDD OTCB B 5.2 0.10 11.1% -16.7% 0.0% -28.6% -70.6% -71.4%
W oozyF ly, Inc. US D W ZY F OTCB B 2.6 0.15 0.0% NM 0.0% 0.0% NM -96.3%
W ynds torm C orporation US D W Y ND OTCP K 1.8 0.10 0.0% 0.0% 233. 3% -16.7% -83.3% -83.3%
XING AG E UR O 1B C XT R A 243.7 32.25 11.2% 15.6% -3. 7% 29.1% 0.8% -6. 3%
Y edangOnline C orp. KR W A 052770 K OS E 110.4 9, 080 2.0% -4.0% -1. 3% 39.7% 14.2% -26.8%
Y nk K orea Inc. KR W A 023770 K OS E 18. 5 4, 260 2.4% -13.1% -38.2% 23.1% -58.6% -65.6%
H igh 150. 0% 650.0% 1400.0% 1275. 0% 553.9% -0. 9%
L ow -53.3% -58.0% -79.2% -88.0% -99.7% -99.8%
Average 739.6 2.0% 9.0% 40.0% 77.6% -4.2% -47.0%
Median 0.0% 0.0% 0.0% 39.7% -29.2% -44.8%

Figure 19. Price Performance

Source. Capital IQ
 Page 15

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 124.8 0.9x - 3. 7x - 18.3x - 2.0x
AQ Intera ctive, Inc. G aming J apan TS E 3838 29.8 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 1.3 37.5x - - - - - -
B etawave C orpora tion Media U nited S ta tes OTCB B B W AV 2.0 - - - - - - 0.4x
B eyond C ommerce, Inc. S ocial Networking U nited S ta tes OTCB B B YOC 9.7 1.3x - - - - - -
B right T hings plc S ocial Networking U nited K ingdom AIM AIM:B G T 6.1 22.4x - - - - - -
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 252.2 0.7x 0.7x 9. 9x 6.9x - - -
C hangyou.com Limited G aming C hina N as da qG S C Y OU 2,147.8 7.8x 6.0x 12.7x 10.4x 14.7x 13.2x 14.6x
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 1,180.6 19.8x - 35.4x - 45.6x - 17.1x
C L IC K E R Inc. Direct Marketing U nited S ta tes OTCB B C LK Z 0.6 0.3x - - - - - -
C ornerW orld C orporation C ontent U nited S ta tes OTCB B CW R L 5.7 4.1x - - - - - -
C yberplex Inc. A dvertis ing C ana da TS X T S X: C X 73.3 0.6x 0.5x 5. 4x 4.1x 6.5x 7.3x 2.9x
DA DA S pA S ocial Networking Italy CM C M:DA 149.2 0.8x - 6. 3x - - - -
DXN Holdings B hd S ocial Networking Mala ys ia K LS E DXN 36.9 0.7x - 4. 7x - 6.2x - 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 4.2 6.3x - - - - - -
DigitalT own, Inc. S ocial Networking U nited S ta tes OTCB B DG T W 47.9 - - - - - - -
Dolphin Digital Media, Inc. S ocial Networking U nited S ta tes OTCB B DP DM 23.6 42.3x 1.6x - - - 1.8x -
E olith C o. L td. G aming S outh K orea K OS E A041060 60.8 4.2x - - - - - 5.7x
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 62.0 10.1x 9.0x - - - - 5.7x
F rogs ter Interactive P ictures A G G aming G erma ny XT R A FR G 69.5 20.6x - - - - - 9.4x
G amania Digital E ntertainment C o., Ltd. G aming T a iwa n GTS M 6180 233.1 1.5x - 8. 6x - 20.3x - 3.1x
G ameO n C o Ltd. G aming J apan TS E 3812 104.5 0.4x - 1. 7x - 10.9x - 1.3x
G eoS entric Oyj Mobile F inland H LS E G E O1V 51.5 9.7x - - - - - 43.5x
G iant Interactive G roup, Inc. G aming C hina NY S E GA 1,732.3 - - - - 2.1x 13.8x 0.3x
G igaMedia Ltd. G aming T a iwa n N as da qG S G IG M 261.1 1.0x 1.0x - 4.8x 10.3x 9.6x 2.2x
G ravity C o., Ltd G aming S outh K orea N as da qG M GR VY 50.0 - - - - 0.0x - 0.0x
G ree, Inc. S ocial Networking J apan TS E T S E : 3632 1,953.5 12.3x - 20.4x - 43.1x - 19.9x
G ungH o O nline E nterta inment, Inc. Media J apan OS E 3765 295.5 2.3x - 10.3x - 66.5x - 22.9x
Ha nbitS oft, Inc. G aming S outh K orea K OS E A047080 71.3 1.0x - 42.5x - 13.1x - 2.1x
IAC /InterActiveC orp. Media U nited S ta tes N as da qG S IAC I 2,486.5 0.5x 0.5x 14.2x 4.4x 11.8x 35.7x 1.2x
IAS E nergy, Inc. V ideo C ana da OTCB B IAS A.E 9.5 - - - - - - -
is eemedia Inc. C ontent C ana da T S XV IE E 2.4 0.9x - - - - - 1.9x
J umbuck E ntertainment Limited S ocial Networking Aus tra lia AS X AS X:J MB 16.7 0.6x - 1. 5x - 4.9x - 1.6x
K A B Dis tribution Inc. C ontent C ana da TS X T S X:K AB 84.6 - - - - - - 1.0x
K ings oft C o. Ltd. G aming C hina S E HK 3888 1,225.4 9.0x - 20.3x - 24.5x - 6.8x
Lingo Media C orpora tion L earning C ana da T S XV T S XV : LM 11.6 10.9x - - - - - 11.7x
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 20.0 - - - - - - 0.8x
Magnitude Information S ys tems Inc. S ocial Networking U nited S ta tes OTCB B MA G Y 4.1 - - - - - - -
Mixi, Inc. S ocial Networking J apan TS E 2121 891.0 5.9x - 17.5x - 45.0x - 6.2x
Modern T imes G roup Mtg AB Media S weden OM MT G B 2,778.9 1.7x 1.7x 11.3x 12.7x 13.7x 14.9x -
MOK O .mobi Limited S ocial Networking Aus tra lia AS X MK B 5.7 3.6x - - - - - 4.0x
Myriad G roup AG Mobile S witzerla nd SWX MY R N 91.7 2.5x - - - - - 4.0x
NE OW IZ G ames C orporation G aming S outh K orea K OS E A095660 649.4 3.2x - 11.9x - 35.0x - 17.7x
NetDra gon W ebS oft, Inc. G aming C hina S E HK 777 400.3 2.9x - 8. 7x - 16.3x - 2.1x
Netea s e.com Inc. G aming C hina N as da qG S NT E S 5,503.2 - - - - 3.1x 17.0x 0.9x
NeuLion Incorporated V ideo C ana da TS X T S X:NL N 116.7 5.0x - - - - - 8.5x
NeXplore C orporation C ontent U nited S ta tes OTCP K NXP C 30.7 49.2x - - - - - -
Ngi G roup Inc. Media J apan TS E 2497 37.0 - - - - - - 0.7x
Northgate T echnologies Limited Direct Marketing India BS E 590057 35.8 0.4x - - - - - -
O pen T ext C orp. C ollabora tion C ana da N as da qG S OT E X 1,950.1 2.5x 2.2x 9. 6x 8.0x 32.5x 12.3x -
O penwave S ys tems Inc. Mobile U nited S ta tes N as da qG S OP W V 233.3 0.6x 0.6x 23.4x 5.6x - 43.8x 3.4x
P erfect W orld C o., Ltd. G aming C hina N as da qG S PWRD 1,958.9 0.6x 2.8x 1. 0x 5.4x 2.8x 12.9x 1.3x
P N I Digital Media Inc. Digita l Ima ging C ana da T S XV T S XV :P N 55.7 2.5x 2.1x 23.0x 6.9x - 13.9x 19.2x
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 3,317.7 - - - - 2.4x 12.7x 0.9x
S hutterfly, Inc. Digita l Ima ging U nited S ta tes N as da qG S S FLY 339.6 1.3x 1.2x 10.1x 6.3x - - 2.0x
S K C ommunications C o., Ltd. S earch S outh K orea K OS E A066270 305.8 1.6x - 25.2x - - - -
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 24.8 - - - - - - -
S ohu.com Inc. G aming C hina N as da qG S S O HU 2,400.9 3.9x 3.4x 9. 0x 7.5x 14.2x 17.0x 4.7x
S park N etworks , Inc. S ocial Networking U nited S ta tes AME X L OV 46.3 0.9x - 4. 1x - 12.7x - 47.3x
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 29,970.5 23.7x - 48.4x - 61.2x - 27.3x
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 193.7 - - - - 2.2x - 0.1x
T heS treet.com, Inc. Media U nited S ta tes N as da qG M TS CM 74.4 0.1x 0.2x 5. 1x - - - 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 80.7 0.4x - - 6.2x - 42.1x 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 613.7 0.9x 0.9x 4. 3x 3.7x - 10.5x -
UO MO Media, Inc Media C ana da OTCB B UO MO 12.0 14.4x - - - - - -
V a lueC lick Inc. Media U nited S ta tes N as da qG S V CLK 895.1 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 4.1 - - - - - - 26.3x
W ebzen Inc. G aming S outh K orea N as da qG M W ZE N 34.3 - - - - 0.0x - 0.0x
W izzard S oftware C orporation P odca s ting U nited S ta tes AME X W ZE 21.7 4.3x - - - - - -
W orlds .com Inc. C ontent U nited S ta tes OTCB B W DDD 5.2 - - - - 20.0x - -
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 243.7 3.3x - 11.6x - 25.6x - 8.0x
Y eda ngO nline C orp. G aming S outh K orea K OS E A052770 110.4 2.1x - 9. 9x - 12.1x - 3.8x
Y nk K orea Inc. G aming S outh K orea K OS E A023770 18.5 1.5x - 14.5x - - - 0.9x
High 29,970.5 49.2x 9.0x 48.4x 12.9x 66.5x 43.8x 47.3x
Low 0.0 0.0x 0.2x 0. 2x 3.7x 0.0x 1.8x 0.0x
Average 739.6 6.0x 2.0x 12.7x 7.0x 18.4x 17.3x 7.3x
Median 49.0 2.1x 1.3x 9. 9x 6.3x 13.1x 13.8x 3.0x

Figure 20. Valuation Comparison

Source. Capital IQ
 Page 16

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 46, 938. 8 C hina 4,693. 9 C hina 4,080. 4 C hina 2, 038. 8 C hina 49. 4%
C a na da 10 U nited S ta tes 5, 255. 6 S weden 2,901. 8 United S tates 3,887. 4 S weden 299. 6 A us tralia 37. 2%
C hina 10 J a pan 3, 494. 2 J apan 582. 4 S weden 1,950. 0 United S tates 289. 4 T aiwan 36. 9%
S outh K orea 8 S weden 2, 901. 8 T aiwan 500. 1 C a na da 1,015. 7 C a na da 200. 3 G ermany 28. 8%
J a pa n 6 C anada 2, 409. 0 Hong K ong 278. 7 S outh K orea 672. 3 J a pa n 181. 5 J apan 25. 0%
T a iwa n 3 T a iwa n 1, 500. 4 C anada 240. 9 J a pa n 616. 5 S outh K orea 94. 2 S weden 15. 4%
Aus tralia 2 S outh K orea 1, 270. 9 S outh K orea 158. 9 T a iwa n 379. 1 T a iwa n 56. 2 Mala ys ia 14. 4%
G erma ny 2 Hong K ong 278. 7 Ita ly 148. 1 Hong K ong 361. 6 Ita ly 31. 1 Italy 13. 1%
S witzerla nd 1 G ermany 268. 1 R us s ia 145. 7 Ita ly 236. 5 Hong K ong 25. 1 R us s ia 13. 1%
Hong K ong 1 Ita ly 148. 1 U nited S ta tes 134. 8 R us s ia 150. 9 R us s ia 19. 7 S outh K orea 7. 9%
F inla nd 1 R us s ia 145. 7 G ermany 134. 0 India 81. 9 Ma lays ia 11. 0 Hong K ong 6. 9%
Ita ly 1 S witzerla nd 90. 4 S witzerla nd 90. 4 Ma lays ia 76. 5 G erma ny 10. 3 S witzerla nd 1. 9%
United K ingdom 1 F inland 64. 3 F inland 64. 3 G erma ny 60. 8 Aus tralia 3. 1 C anada -12. 1%
India 1 Malays ia 34. 8 Malays ia 34. 8 S witzerla nd 40. 0 S witzerla nd 0. 8 U nited S ta tes -21. 9%
S weden 1 India 28. 3 India 28. 3 Aus tralia 16. 3 Norwa y -1. 1 India -50. 0%
R us s ia 1 Aus tralia 20. 5 Aus tralia 10. 3 F inla nd 6. 1 United K ingdom -1. 9 Norway -50. 6%
Ma lays ia 1 U nited K ingdom 4. 0 U nited K ingdom 4. 0 Norwa y 2. 2 F inla nd -15. 7 U nited K ingdom NA
Norwa y 1 Norway 0. 1 Norway 0. 1 United K ingdom 0. 3 India -40. 9 F inland NA

G rand Total 90 G rand Total 64,853.7 G rand Total 720.6 G rand Total 13,634.4 G rand Total 3,201.5 G rand Total 5.0%

Figure 21. Comparison by Country

Source. Capital IQ

C omparable C ompany Analys is > Web 2.0

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

OT C B B 19 S E HK 29, 755. 1 S E HK 9,918. 4 OM 1,950. 0 Na s daqG S 1, 760. 5 NY S E 62. 5%

Na s daqG S 14 Nas da qG S 22, 686. 9 OM 2,901. 8 S E HK 535. 7 S E HK 772. 0 S E HK 43. 0%
OT C P K 11 TS E 3, 199. 8 NY S E 1,754. 9 Na s daqG S 494. 4 OM 299. 6 AS X 37. 2%
K OS E 6 OM 2, 901. 8 Nas da qG S 1,620. 5 CM 236. 5 TS E 161. 9 GTS M 36. 9%
TS E 5 NY S E 1, 754. 9 TSE 640. 0 NY S E 198. 5 NY S E 124. 1 Nas da qG S 30. 3%
Na s daqG M 5 GTS M 1, 242. 6 GTS M 621. 3 RTS 150. 9 K OS E 79. 3 XT R A 28. 8%
TS X 4 K OS E 1, 171. 1 OS E 294. 3 OS E 109. 0 GTS M 56. 2 TSE 26. 4%
T S XV 4 TS X 362. 0 K OS E 195. 2 TS E 101. 5 CM 31. 1 OS E 18. 0%
S E HK 3 OS E 294. 3 CM 148. 1 K OS E 100. 6 RTS 19. 7 OM 15. 4%
AME X 2 Nas da qG M 285. 5 R TS 145. 7 GTS M 97. 7 OS E 19. 6 K LS E 14. 4%
AS X 2 XT R A 268. 1 XT R A 134. 0 BSE 81. 9 Na s daqG M 11. 7 CM 13. 1%
XT R A 2 OT C B B 197. 6 TSX 90. 5 Na s daqG M 81. 8 K LS E 11. 0 R TS 13. 1%
GTS M 2 CM 148. 1 SWX 90. 4 K LS E 76. 5 XT R A 10. 3 Nas da qG M 6. 4%
SWX 1 R TS 145. 7 HLS E 64. 3 TS X 46. 7 AME X 6. 2 T S XV 5. 6%
HL S E 1 SWX 90. 4 Nas da qG M 57. 1 SWX 40. 0 AS X 3. 1 K OS E 4. 4%
CM 1 T S XV 69. 6 K LS E 34. 8 XT R A 30. 4 SWX 0. 8 S WX 1. 9%
BS E 1 AME X 66. 9 AME X 33. 4 AME X 27. 9 OT C NO -1. 1 A ME X -31. 8%
NY S E 1 HLS E 64. 3 BS E 28. 3 OT C P K 16. 5 AIM -1. 9 TSX -34. 7%
OS E 1 OT C P K 61. 3 T S XV 17. 4 T S XV 12. 0 TS X -4. 2 OTCP K -41. 5%
AIM 1 K LS E 34. 8 OT C B B 10. 4 AS X 8. 1 T S XV -4. 4 OTCB B -45. 1%
OM 1 BS E 28. 3 AS X 10. 3 HL S E 6. 1 HL S E -15. 7 BSE -50. 0%
RTS 1 AS X 20. 5 OT C P K 5. 6 OT C B B 2. 3 OT C P K -34. 1 O T C NO -50. 6%
K LS E 1 AIM 4. 0 AIM 4. 0 OT C NO 2. 2 BSE -40. 9 HLS E #DIV /0!
OT C NO 1 OT C NO 0. 1 OT C NO 0. 1 AIM 0. 3 OT C B B -63. 5 A IM #DIV /0!

G rand Total 90 G rand Total 64,853.7 G rand Total 720.6 G rand Total 13,634.4 G rand Total 3,201.5 G rand Total 5.0%

Figure 22. Comparison by Exchange

Source. Capital IQ
 Page 17

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

F in. Amount (Million) Type of financing
Month C ompany Name C ountry Angel/S eed S eries A S eries B S eries C S eries D G rand Total
J ul-09 Pandora Media US A 35. 0 35. 0
K ontera Ltd. Is rael 15. 5 15. 5
Ning US A 15. 0 15. 0
QuickPlay Media C anada 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 erma ny 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
TweetDeck UK 3. 2 3. 2
B us ca US A 2. 6 2. 6
Akademos US A 2. 5 2. 5
ProtonMedia 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 erma ny 1. 5 1. 5
L at49 C anada 1. 5 1. 5
Thread US A 1. 2 1. 2
Tributes .com US A 1. 2 1. 2
C oTweet US A 1. 1 1. 1
C ellufun US A 1. 0 1. 0
C likthrough US A 1. 0 1. 0
C ognitive Match L imited UK 1. 0 1. 0
B ookF res h US A 0. 5 0. 5
People C apital US A 0. 5 0. 5
Mas her Media US A 0. 3 0. 3
J ul-09 Total 65.0 11.1 36.8 51.5 27.0 191.4

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
Polyvore US A 5. 6 5. 6
F anbas e US A 5. 0 5. 0
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 erma ny 2. 8 2. 8
R oblox US A 2. 2 2. 2
iS oc ket US A 2. 0 2. 0
Tremor Media US A 2. 0 2. 0
R ights F low US A 1. 5 1. 5
Plis ta G erma ny 1. 4 1. 4
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 11.5 77.6 43.6 50.0 208.5

S ep-09 YuMe US A 5. 0 5. 0
Mas hL ogic US A 2. 5 2. 5
G reys tripe US A 2. 0 2. 0
F ourS quare US A 1. 4 1. 4
E duF ire US A 1. 3 1. 3
S ep-09 Total 5.2 7.0 12.2

G rand Total 90.8 27.8 114.4 102.1 77.0 412.0

Figure 23. Financing, Last Three Months

Source. Company reports
 Page 18

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

C ompany HQ Webs ite Des cription
E duF ire United S ta tes www. edufire. com E duca tion R evolution, Inc. operates as an online community that provides online live video tutoring s ervices . It offers tutoring s ervices for
s tudents covering various langua ges and preparing s tudents for exams on video chat s es s ions . T he company was founded in 2007 and is
bas ed in S anta Monica , C alifornia.

F ourS quare United S ta tes www. fours quare.com F ours quare S olutions Inc. des igns and develops s oftware for iphones . F ours quare S olutions Inc. is bas ed in New Y ork , New Y ork.
G reys tripe United S ta tes www. greys tripe. com G reys tripe, Inc. operates an ad-s upported mobile games and applications dis tribution platform. T he company provides online gaming and in-
game advertis ing s olutions through publis her s ites . Its AdW R AP product s uite ena bles brand advertis ers to communica te their brand
mes s ages to mobile audience; publis hers to s erve ads through their games ; and cons umers to download games , as well as delivers images ,
videos , and s crolling banners to mobile games and applications . T he company’s s olutions a ls o include AdW R AP C ampaign Ma nager, an
a dvertis ing W eb interfa ce that allows advertis ing agencies a nd ad res ellers to crea te and monitor mobile in-ga me a d campaigns ; AdW R AP
C atalog P rogram, which enables partners to dis tribute a mobile game ca talog; and AdW R AP for P ublis hers platform that provides mobile
game publis hers an automa ted proces s , which ad-enables mobile games and applications . It s erves developers , carriers and dis tributors ,
game players , and cons umer W eb s ites . T he company is bas ed in S an F rancis co, C alifornia.

Mas hL ogic United S ta tes www. ma s hlogic. com Mas hLogic Inc. offers mas hes to pers ona lize the applications for the us ers and bloggers . It adds relevant links to W ebs ites , pers onaliz es
W eb pages , increas es vis ibility and reach of content and bra nd, and enriches W eb with links to s ources . T he company was founded in 2007
a nd is bas ed in Menlo P ark, C a lifornia .

NowPublic C a nada www. nowpublic. com NowP ublic T echnologies , Inc. , a participatory news network, owns and operates NowP ublic. com platform for citizen journalis m. T he
company provides politics , culture, enterta inment, and life photos and video headlines . It s erves Internet us ers , bloggers , a nd photography
enthus ias ts . T he company was founded in 2005 a nd is bas ed in V ancouver, C anada. As of S eptember 2, 2009, NowP ublic T echnologies ,
Inc. operates as a s ubs idiary of T he W as hington E xaminer.

S kype Luxembourg www. s kype. com S kype T echnologies S . A. provides S kype, a s oftware that enables individua ls and bus ines s es to ma ke free video and voice calls , s end
ins tant mes s ages , and s ha re files with other S kype us ers . It als o enables to make calls to landlines and mobiles internationa lly. T he
company als o provides heads ets , W ebca ms , and phones through its online s hop. It s erves us ers in Argentina, B raz il, C hile, C olombia,
Mexico, P eru, and V enez uela. T he company was founded in 2003 and is bas ed in Luxembourg. As of October 14, 2005, S kype T echnologies
S . A. is a s ubs idiary of eB ay Inc.

YuMe United S ta tes www. yumenetwork s . com Y uMe, Inc. operates a s a video advertis ing network on W eb. It offers ad mana gement s ys tem tha t enables a dvertis ers and publis hers to
identify, clas s ify, and track content through digital media platforms , s uch a s W eb, downloads , mobile, a nd IP T V . T he company als o enables
publis hers to organize video on their s ite into content channels , s uch as automotive, financial s ervices , lifes tyle, news , mus ic, s ports ,
entertainment, and fa mily friendly. In addition, it offers real-time targeting, mea s urement, and optimization; content dis tribution and viral
a dvertis ing opportunities ; a s uite of intera ctive ad placements ; a nd video monetiz ation s ervices . F urther, the company provides a beha viora l
targeting s ys tem that enables advertis ers to target their mes s ages to viewers on a nationa l s cale bas ed on video viewing interes ts a nd
purchas e intent. Y uMe, Inc. was founded in 2004 and is headquartered in R edwood C ity, C alifornia.

Figure 24. Company Descriptions

Source. Company reports, Capital IQ, Crunchbase
 Page 19

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 ) .

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