09-12-15 Web 2.0 Weekly

SOFTWARE & SERVICES 15 DECEMBER 2009
DAVID SHORE, CFA, MBA 416.860.6784

WEB 2.O WEEKLY david.shore@researchcapital.com
Damian Wojcichowsky, CFA (Associate), 416.860.7652
“GEO-LOCATIO N-BASED” BECOMING A BIG MONEY PHRASE

GO W AL L A VAL U AT I ON P U SH E S “ UN IQ U E VI SI T O R ” BO UN D AR Y
Two transactions this week highlight varying perspectives on user-driven W eb 2.0 valuations – the Series B financing
of geo-location-based, gaming-oriented social network Gowalla; and the acquisition of Friendster, the third largest
social network by number of users, by Malaysian payments company, MOL Global. Some of the highlights include:
Gow alla sets a new high: Gowalla raised $8.5 million in a Series B financing this past week. W ith just 50,000 users
on the location-based social network (driven by the company’s Facebook game application, PackRat, launched in
2008), the most recent raise valued the company at $28.4 million, implying a per unique visitor value of $568 – well
above the previous high we recorded in May 2008 for Plaxo at $200/user.
Geo-location services are hot: Gowalla’s $568 UV valuation, we believe, is largely based on the company’s
positioning in the very popular geo-location application sector. Some of the other metrics we have collected in the
space include Foursquare valued in September at $40/user and Poynt (by Multiplied Media, a publicly traded
company) currently valued at $16/user. Our expectation is that UV valuations in this space will increase as more
companies execute funding raises.
There is a big difference between first and third place: Friendster’s user base (estimated at 50-150 million users,
depending on the source) ranks it third among social networking sites – Facebook leads the way with 300+ million
users. However, boasting millions of users does not guarantee a windfall valuation – as Friendster’s $0.67/user to
$2.00/user (depending on which total user number is used) valuation illustrates. W e postulate that building a critical
mass number of users only helps valuation if your application is a leader in its category and therefore represents the
de facto “go to” option for users – as is the case with Facebook, which was last valued at $32/user.
E s timated Value per Unique Vis itor
$600 $568
$500
$400
( $)
$300
$200
$200
$113
$88
$100
$48 $42 $40 $32 $29 $29 $22 $20 $16 $16 $7 $7 $5 $1
$-
Gowalla Plaxo M int.com Linkedin FriendFeed Twit ter Foursquare Facebook Club Penguin Twitter Bebo People MMC Pageonce Skype Playf ish StumbleUpon Friendster
M edia (Poynt )
Dec-09 M ay-08 Sep-09 Oct-08 Aug-09 Sep-09 Sep-09 M ay-09 Aug-07 Feb-09 M ar-08 Jul-09 Dec-09 Dec-09 Sep-09 Nov-09 M ay-09 Dec-09
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

Eighty-nine public Web 2.0 companies: Our W eb 2.0 universe contains 89 companies, with a combined market cap of
approximately $74 billion (Figure 1). The median market cap for the group is $40 million, with average trailing revenue of
$166 million (median $54 million). The companies are also generally profitable with a median EBITDA margin of 11.1%.
On a valuation basis, the overall average is 5.9x trailing revenue (median 1.9x) and 10.2x trailing EBITDA (median 7.6x).
Twenty of the companies have more than 500 employees.
C omparable C ompany Analys is > Web 2.0
Trading C urrent US D Market US D L TM Total US D L TM Total E B ITDA TE V/L TM TE V/L TM
C ompany Name L TM as of Ticker E xc hange C urrency HQ P rice C ap ($m) R ev ($m) E B ITDA ($m) % R evenue E B ITDA E mployees
Accelerize New Media , Inc. 9/30/2009 AC LZ OT C B B US D United S ta tes 0. 65 18. 7 4. 1 (1.5) -36. 5% 5. 7x - 11
Actoz S oft C o. , Ltd. 9/30/2009 A052790 K OS E KR W S outh K orea 21,050 152. 9 115.9 25. 7 22. 2% 1. 0x 4. 4x NA
AQ Interactive, Inc. 9/30/2009 3838 TS E JPY J a pan 40,500 24. 6 74. 0 3.8 5.1% 0. 0x 0. 5x NA
As knet AG 9/30/2009 X T R A:A5A XT R A E UR G ermany 4 26. 0 103.6 (2.4) NM 12.6x - 3
As s ociated Media Holdings Inc. 6/30/2007 AS MH OT C P K US D United S ta tes 0. 01 0.4 0. 1 (2.3) NM 12.6x - 3
B igs tring C orp. 9/30/2009 BS GC OT C B B US D United S ta tes 0. 02 1.3 0. 1 (1.0) NM 37.4x - 4
B eta wave C orporation 9/30/2009 B W AV OT C B B US D United S ta tes 0. 06 1.8 8. 4 (14. 3) NM - - 48
B eyond C ommerce, Inc. 9/30/2009 B Y OC OT C B B US D United S ta tes 0. 04 2.0 13. 5 (12. 4) -91. 9% 1. 0x - 86
B right T hings plc 3/31/2009 AIM: B G T AIM GBP United K ingdom 0. 01 5.3 0. 0 (2.7) NM - - NA
B roa dW ebAs ia Inc. 9/30/2008 BWBA OT C P K US D United S ta tes 0. 05 4.2 0. 0 (4.6) NM - - 46
C DC C orp. 9/30/2009 C HIN. A Na s daqG S US D Hong K ong 2. 39 253. 3 334.2 20. 0 6.0% 0. 7x 11. 1x 2, 227
C hangyou. com L imited 9/30/2009 C Y OU Na s daqG S US D C hina 31. 47 1,730. 9 255.3 157.4 61. 7% 5. 6x 9. 0x 628
C hina G a teway C orporation 9/30/2008 CGWY OT C P K US D United S ta tes 0. 01 0.2 6. 7 (6.6) -98. 9% 0. 0x - 37
C hines e G amer Interna tiona l 9/30/2009 G T S M: 3083 GTS M TWD T aiwa n 431 1,117. 8 68. 3 39. 6 58. 0% 15.2x 26. 2x 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 0.4 2. 5 (1.2) -45. 8% 0. 2x - 22
C ornerW orld C orpora tion 7/31/2009 CWR L OT C B B US D United S ta tes 0. 03 2.9 6. 8 NM NM 1. 9x - 16
C yberplex Inc. 9/30/2009 T S X :C X TS X C AD C anada 1 74. 8 105.6 11. 7 11. 1% 0. 5x 4. 7x NA
DADA S pA 6/30/2009 C M: DA CM E UR Italy 6. 02 142. 8 241.9 31. 8 13. 1% 0. 8x 6. 0x NA
DXN Holdings B hd 8/31/2009 DX N K LS E MY R Ma la ys ia 0. 57 37. 2 77. 3 (84. 0) NM 0. 6x - NA
Dibz International, Inc. NA DIB Z OT C P K US D United S ta tes 0. 01 0.0 NA NM NM - - NA
DigitalP os t Interactive, Inc. 9/30/2009 DG LP OT C B B US D United S ta tes 0. 05 4.6 1. 2 (0.9) -73. 8% 5. 7x - 7
DigitalT own, Inc. 8/31/2009 DG T W OT C B B US D United S ta tes 1. 40 38. 3 0. 0 (1.8) NM - - 3
Dolphin Digital Media , Inc. 9/30/2009 DP DM OT C B B US D United S ta tes 0. 28 15. 9 0. 3 (4.6) NM - - NA
E olith C o. Ltd. 12/31/2008 A041060 K OS E KR W S outh K orea 565 69. 9 15. 4 (3.6) -23. 6% 4. 7x - NA
E xtens ions , Inc. 9/30/2009 E XT I OT C P K US D United S ta tes 0. 45 20. 0 0. 0 NM NM - - 2
F luid Mus ic C a nada , Inc. 9/30/2009 T S X :F MN TS X C AD United S ta tes 1. 70 98. 6 5. 6 (3.0) -54. 0% 17.0x - NA
F rogs ter Interactive P ictures AG 6/30/2009 FRG XT R A E UR G ermany 18. 00 67. 5 9. 6 (4.5) -47. 0% 6. 9x - NA
G ama nia Digita l E ntertainment C o., Ltd. 9/30/2009 6180 GTS M TWD T aiwa n 49. 90 236. 1 151.2 24. 9 16. 5% 1. 4x 8. 5x NA
G ameOn C o Ltd. 9/30/2009 3812 TS E JPY J a pan 66,500 71. 9 79. 3 18. 6 23. 5% - - NA
G eoS entric O yj 9/30/2009 G E O 1V HL S E E UR F inland 0. 05 65. 8 4. 7 (19. 0) NM 14.8x - 118
G iant Interactive G roup, Inc. 9/30/2009 GA NY S E US D C hina 7 1,691. 7 202.2 137.9 68. 2% - - 1, 570
G iga Media Ltd. 3/31/2009 G IG M Na s daqG S US D T aiwa n 3. 67 200. 1 183.6 NM NM 0. 7x - 751
G ravity C o., Ltd 9/30/2009 GR VY Na s daqG M US D S outh K orea 1. 42 39. 5 49. 9 17. 7 35. 4% - - 469
G ree, Inc. 9/30/2009 T S E : 3632 TS E JPY J a pan 4,830 2,418. 2 210.3 122.2 58. 1% 11.0x 19. 0x NA
G ungHo O nline E ntertainment, Inc. 9/30/2009 3765 OS E JPY J a pan 152,500 195. 4 120.7 26. 9 22. 3% 1. 3x 5. 8x NA
HanbitS oft, Inc. 9/30/2009 A047080 K OS E KR W S outh K orea 3,910 71. 7 57. 6 (0.3) -0.6% 1. 0x - NA
IAC /InterActiveC orp. 9/30/2009 IAC I Na s daqG S US D United S ta tes 19. 30 2,547. 0 1, 359. 6 82. 4 6.1% 0. 7x 11. 0x 3, 200
is eemedia Inc. 9/30/2009 IE E T S XV C AD C anada 0. 17 8.0 1. 8 (4.1) NM 4. 6x - NA
J umbuck E nterta inment Limited 6/30/2009 AS X :J MB AS X AUD Aus tralia 0. 32 13. 6 16. 7 7.2 42. 8% 0. 4x 1. 0x 79
K AB Dis tribution Inc. 6/30/2009 T S X :K AB TS X C AD C anada 0 0.6 67. 9 4.0 5.8% - - NA
K ings oft C o. Ltd. 9/30/2009 3888 S E HK HK D C hina 5 739. 7 143.4 57. 6 40. 2% 4. 7x 11. 7x 2, 271
Lingo Media C orporation 9/30/2009 T S X V :LM T S XV C AD C anada 0. 90 10. 3 1. 3 (2.3) NM 7. 6x - NA
LiveW orld Inc. 9/30/2009 LVW D OT C P K US D United S ta tes 0. 03 1.0 10. 4 0.4 4.1% - - NA
LookS mart, Ltd. 9/30/2009 L OO K Na s daqG M US D United S ta tes 1. 07 18. 3 54. 0 (4.5) -8.4% - - 90
Magnitude Information S ys tems Inc. 9/30/2009 MAG Y OT C B B US D United S ta tes 0. 02 8.9 0. 1 (2.3) NM - - 14
Mixi, Inc. 9/30/2009 2121 TS E JPY J a pan 807000. 00 1,390. 7 139.6 46. 1 33. 0% 9. 0x 27. 3x NA
Modern T imes G roup Mtg AB 9/30/2009 MT G B OM SEK S weden 328. 60 3,109. 7 2, 002. 6 282.9 14. 1% 1. 8x 12. 9x 2, 969
MO K O .mobi Limited 6/30/2009 MK B AS X AUD Aus tralia 0. 16 14. 8 0. 7 (2.4) NM 20.0x - NA
Myriad G roup AG 6/30/2009 MY R N SWX C HF S witzerland 4. 85 208. 0 63. 0 3.4 5.4% 3. 2x - 405
NE O W IZ G ames C orpora tion 12/31/2008 A095660 K OS E KR W S outh K orea 43600. 00 770. 2 207.3 55. 7 26. 8% 3. 7x 13. 7x NA
NetDragon W ebS oft, Inc. 9/30/2009 777 S E HK HK D C hina 4 276. 9 91. 4 27. 8 30. 4% 1. 4x 4. 4x 2, 426
Neteas e. com Inc. 9/30/2009 NT E S Na s daqG S US D C hina 37. 02 4,791. 4 482.9 291.8 60. 4% - - 3, 109
NeuLion Incorporated 9/30/2009 T S X :NLN TS X C AD C anada 0. 70 74. 9 24. 9 (16. 1) -64. 5% 2. 5x - 237
NeXplore C orporation 6/30/2009 NX P C OT C P K US D United S ta tes 1 35. 1 1. 7 (13. 3) NM 23.0x - NA
Ngi G roup Inc. 9/30/2009 2497 TS E JPY J a pan 23570. 00 32. 6 81. 7 3.2 3.9% - - NA
Northgate T echnologies L imited 9/30/2009 590057 BSE INR India 28. 60 20. 8 46. 4 (49. 8) NM 0. 4x - NA
O pen T ext C orp. 9/30/2009 OT E X Na s daqG S US D C anada 38. 25 2,156. 6 814.5 211.1 25. 9% 2. 7x 10. 6x 3, 900
O penwave S ys tems Inc. 9/30/2009 OP W V Na s daqG S US D United S ta tes 2. 26 188. 8 190.5 6.2 3.3% 0. 4x 13. 5x 590
P erfect W orld C o. , Ltd. 9/30/2009 PWRD Na s daqG S US D C hina 43. 10 2,144. 5 286.1 157.4 55. 0% 0. 5x 0. 8x 2, 096
P NI Digital Media Inc. 6/30/2009 T S X V :P N T S XV C AD C anada 1. 85 58. 2 21. 0 2.3 11. 0% 2. 7x 24. 3x NA
Q uepa s a C orp. 9/30/2009 QP S A OT C B B US D United S ta tes 2 29. 9 0. 2 (9.8) 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. 60 222. 0 157.4 20. 6 13. 1% 0. 0x 0. 4x NA
S handa Interactive E nterta inment Ltd. 9/30/2009 S NDA Na s daqG S US D C hina 52. 57 3,535. 6 694.3 317.2 45. 7% - - 3, 124
S hutterfly, Inc. 9/30/2009 S FLY Na s daqG S US D United S ta tes 17. 54 450. 3 223.1 27. 0 12. 1% 1. 5x 12. 5x 514
S K C ommunications C o., Ltd. 12/31/2008 A066270 K OS E KR W S outh K orea 10700. 00 375. 5 192.7 12. 5 6.5% 1. 9x 30. 0x NA
S NAP Interactive, Inc. 9/30/2009 S TVI OT C B B US D United S ta tes 0 2.2 3. 4 0.5 15. 6% 0. 2x 1. 2x 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 entures 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. 50 23. 4 0. 0 (5.6) NM - - NA
S ohu. com Inc. 9/30/2009 S O HU Na s daqG S US D C hina 53. 24 2,047. 5 501.0 218.4 43. 6% 3. 0x 6. 9x 3, 197
S park Networks , Inc. 9/30/2009 L OV AME X US D United S ta tes 3 51. 5 47. 5 10. 0 21. 0% 1. 0x 4. 8x 183
S pectrumDNA, Inc. 9/30/2009 S P XA OT C B B US D United S ta tes 0 6.8 0. 1 (2.5) NM 48.7x - 7
T encent Holdings Ltd. 9/30/2009 700 S E HK HK D C hina 160 37, 428.2 1, 588. 4 811.3 51. 1% 25.9x - 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 0.2 112.0 (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. 14 179. 3 250.6 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. 22 67. 9 67. 0 1.9 2.9% 0. 1x 1. 8x 310
T ree.C om, Inc. 9/30/2009 TR E E Na s daqG M US D United S ta tes 8. 94 97. 5 217.1 9.7 4.5% 0. 3x 7. 4x 700
Unis erve C ommunica tions C orp. 8/31/2009 T S X V :US S T S XV C AD C anada 0. 04 0.8 16. 1 0.1 0.9% 0. 3x 36. 4x NA
United O nline Inc. 9/30/2009 UNT D Na s daqG S US D United S ta tes 6. 97 589. 6 996.8 212.9 21. 4% 0. 8x 4. 0x 1, 469
UOMO Media, Inc 7/31/2009 UO MO OT C B B US D C anada 0 4.3 0. 8 (0.4) -54. 2% 6. 0x - NA
V alueC lick Inc. 9/30/2009 V C LK Na s daqG S US D United S ta tes 10 842. 1 545.7 130.8 24. 0% 1. 3x 5. 2x 1, 189
V OIS , Inc. 6/30/2009 V O IS OT C B B US D United S ta tes 0 9.1 0. 0 (1.0) NM - - 4
W ebzen Inc. 9/30/2009 W ZE N Na s daqG M US D S outh K orea 3. 00 35. 6 23. 0 2.5 11. 0% - - 328
W izzard S oftwa re C orporation 9/30/2009 W ZE AME X US D United S ta tes 0. 40 21. 4 5. 2 (3.9) -76. 4% 4. 4x - 110
W orlds . com Inc. 9/30/2009 W DDD OT C B B US D United S ta tes 0. 05 2.4 0. 1 (0.6) NM 33.2x - 1
W ynds torm C orpora tion NA W Y ND OT C P K US D United S ta tes 0. 04 0.7 NA NM NM - - NA
XING AG 9/30/2009 O 1B C XT R A E UR G ermany 32. 41 250. 2 62. 5 16. 9 27. 0% 3. 1x 11. 5x 266
Y D O nline C orp. 12/31/2007 A052770 K OS E KR W S outh K orea 6970. 00 87. 6 57. 4 12. 4 21. 6% 1. 6x 7. 6x NA
Y nk K orea Inc. 12/31/2008 A023770 K OS E KR W S outh K orea 3570. 00 16. 0 11. 9 1.3 10. 5% - - NA
High 37, 428.2 2,002. 6 811. 3 68. 2% 48.7x 36. 4x 6, 194
Low 0.0 0. 0 -84.0 -98. 9% - - 1
Average 830.3 165.5 41.3 5.6% 5.9x 10.2x 906
Median 39. 5 54.0 2. 1 11. 1% 1. 9x 7. 6x 252
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 )
Transaction volumes and values keep pace in second week of December: Total transaction value in the W eb 2.0
universe for December-to-date is $132.4 million (compared with $68.8 million at this time last week). The number of
financings stands at 13, averaging $10.2 million each (vs. seven financings at an average $9.8 million per deal at this time
last week). In comparison, total capital raised in November was $203.4 million, averaging $11.3 million (18 deals); October
was $171.3 million, averaging $6.3 million (27 deals); and September was $232.8 million, averaging $9.0 million (26
deals).
Financing Activity Last Twelve Months
400.0 16.0
14.2
350.0 14.0
300.0 11.3 12.0
10.2
250.0 10.0
9.0
(US$m)
(US$m)
200.0 7.6 8.0
7.1
6.7 6.6
6.5 6.3
6.2
150.0 5.6 6.0
4.9
100.0 4.0
50.0 2.0
0.0 0.0
Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09
*May-09 includes $200m FB investment Total Average
Figure 2. Financings, Last Twelve Months

Source. Company reports
Page 4
Deal round-up for December: The large deal highlights for the month include:
• Friendster – the third largest social networking site, behind Facebook and MySpace – was acquired by MOL Global
for at least $100 million.
• Groupon – a social commerce site that allows members to participate in “one-time only” deep discounted deals –
raised $30 million in a second institutional financing.
• Zoosk – online social dating web site – raised $30 million in its fourth financing.
• Lala – streaming music site – was acquired by Apple for $17 million (or $3 million on an enterprise value basis).
• gWallet – developer of virtual currency technology for monetizing brands, publishing, and social media platforms –
raised $12.5 million in a first round financing.
All other deals in the month were in the amount of $10 million or less. For additional details on financings, see Figures 23
and 24 (at end of note).
Financing & M/A Summary - Last Three Months
200.0
180.0
160.0
140.0
120.0
Dec-09
(US$m)
100.0 Nov-09
Oct-09
80.0
60.0
40.0
20.0
0.0
Phoenix New
DailyMotion
Millennial Media
Jive Software
Reality Mobile
Movik Networks
Yext
Box.net
Motley Fool
PlayFish
Zynga
Evernote
Ooyala
Gowalla
wooga
Bizo
Eventbrite
Overtone
Playfire
DailyBooth
SocialMedia
Aviary
Nival Network
AppNexus
Fizzback
Linkedex
Friendster
Scoopler
RockYou
Ku6
Groupon
Engine Yard
Lala
CubeTree
SeekingAlpha
Pageonce
Vdopia
JanRain
ViVu
Blekko
Godengo
Onehub
Hot Potato
IngBoo
Chango
Listia
Ecast Network
Cloud Engines
StockTwits
DataSync
PBworks
Playdom
VEVO
HubSpot
Spigit
ScanScout
Placecast
Tonchidot
StatusNet
Aurora Feint
Joost
Sezmi
Gogii
Rocket Fuel
Technorati
Smaato
Credit Karma
SimpleGeo
Zoosk
PopCap Games
Altruik
Sometrics
Scout Labs
Adfonic
Qunar.com
FeedRoom
Genius.com
Alice.com
Prosper.com
Amie Street
Imeem
Watercooler
gWallet
Figure 3. Capital Market Activity, Last Three Months

Page 5
Broad-based sector financing: Video, Gaming, Advertising, and Analytics experienced the most financing activity among
our W eb 2.0 sector categories in the past three months by number of transactions (seven each). Social Networks and
Collaboration remain strong with six deals each in the past quarter. Infrastructure and Search round out the top three
positions at four deals each over the past three months (Figure 4). The $400 million acquisition of Playfish skews the
Virtual W orlds segment to the highest total.
Capital Market Activity by Sector - Last Three Months
200.0
180.0
160.0
140.0
120.0
(US$m)
100.0
80.0
60.0
40.0
20.0
400.0 144.1 120.3 106.9 57.0 54.0 43.8 39.9 39.8 37.5 30.0 28.7 21.1 18.0 16.7 15.0 12.5 10.0 7.3 7.0 6.4 4.0 3.9 2.2 1.2 0.7
0.0
Social Commerce
Gaming
Documents
Travel
Wiki
Media
Collaboration
Mobile
Microblog
Publishing
Enterprise
Music
Financial Services
Widget
Infrastructure
Search
Mobile Ad
Classified
Social Networks
Virtual Goods
Virtual World
Video
Advertising
Aggregation
Crowdsourced
Analytics
Content
# companies
1 6 7 7 3 2 7 3 4 6 4 7 3 2 2 1 1 1 2 1 2 3 2 1 1 1
Figure 4. Capital Market Activity, by Sector, Last Three Months

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 Q1/09. Since then, the index has diverged in a much
stronger recovery relative to the NASDAQ index (Figure 5).
Web 2.0 Index Price Performance

250
200
150
100
50
0
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
9/7/2009
9/21/2009
10/5/2009
10/19/2009
11/2/2009
11/16/2009
11/30/2009
12/14/2009
Index: Web 2.0 (Market Cap) ^COMP - Share Pricing
Figure 5. Web 2.0 Price Performance

Source. Capital IQ
Page 7
Universe split between risers and decliners: Twenty-three companies in our universe had positive stock price
performances over the past week (for stocks with prices greater than $1) (Figure 6), while 23 companies showed negative
1-week returns.
1 Week P rice P erformance

Quepas a Corp. 38.2%
Tree.Com, Inc. 23.7%
S K Communica tions Co., Ltd. 12.0%
S hutterf ly , Inc. 11.3%
G ree, Inc. 8.8%
Tencent Holdings Ltd. 8.3%
PNI Digital Media Inc. 8.2%
G amania Digital Entertainment Co., Ltd. 5.9%
S park Netw orks , Inc. 5.5%
Eolith Co. Ltd. 4.6%
G iant Interactive G roup, Inc. 3.9%
Mix i, Inc. 2.9%
S handa Interactive Entertainment Ltd. 1.8%
S ohu.com Inc. 1.7%
IA C/InterA ctiveCorp. 1.6%
Changy ou.com Limited 1.5%
G ameOn Co Ltd. 1.5%
Chines e G amer International 1.3%
A ctoz S oft Co., Ltd. 1.2%
Openw ave S y s tems Inc. 0.9%
Cy berplex Inc. 0.9%
HanbitS oft, Inc. 0.3%
My riad G roup A G 0.2%
Webz en Inc. 0.0%
L ookS ma rt, Ltd. 0.0%
A Q Interactive, Inc. -0.1%
Modern Times G roup Mtg A B -0.3%
Y D Online Corp. -0.4%
United Online Inc. -0.4%
Neteas e.com Inc. -0.6%
Perf ect World Co., Ltd. -0.6%
NEOWIZ G ames Corporation -1.4%
CDC Corp. -1.6%
V alueClick Inc. -2.0%
Ngi G roup Inc. -2.4%
Open Tex t Corp. -2.5%
TheS treet.c om, Inc. -2.6%
G ravity Co., Ltd -2.7%
X ING A G -3.0%
Y nk K orea Inc. -3.4%
Frogs ter Interactive Pictures A G -4.0%
DA DA S pA -4.1%
The9 Limited -4.5%
G igaMedia Ltd. -4.9%
Fluid Mus ic Canada, Inc. -5.6%
NetDragon WebS oft, Inc. -6.2%
Northgate Technologies Limited -6.4%
K ings oft Co. Ltd. -7.3%
-0.1 0 0.1 0.2 0.3 0.4 0.5
Figure 6. 1-Week Price Performance

Source. Capital IQ
Page 8
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 Headline Notes
Modern Times G roup Mtg AB (OM: MTG Modern T imes G roup Mtg AB E nters S tra tegic Modern T imes G roup Mtg AB a nnounced tha t it ha s entered into a s tra tegic coopera tion with the S anoma O yj to launch a
B ); S anoma Oyj (HL S E : S AA1V) C oopera tion with the S anoma O yj loca lis ed premium s ports cha nnel in F inland. Nelonen S port P ro will be la unched in F ebrua ry 2010 a nd will fea ture content
from both V ia s a t and S a noma-owned Nelonen Media , including the F innis h S M L iiga, NHL a nd K HL internationa l ice hockey
lea gue; football from UE F A C ha mpions Lea gue, E nglis h F A C up and the F rench Ligue 1; Moto G P , AT P Mas ter S eries
tennis ; a s well a s E uroleague bas ketball and covera ge of major interna tional golf tournaments . S port P ro will be wholly
owned by the S a noma E nterta inment and the cha nnel will be a va ila ble exclus ively on V ia s a tâ's F innis h digital s a tellite pay-
T V pla tform a nd in V ias at pa y- T V pa cka ges in ca ble networks in F inla nd from la unch.
TheS treet.com, Inc. (Nas daqG M: TS C M) T hes treet. com, Inc. Decla res Q uarterly C as h T heS treet. com, Inc. a nnounced tha t its boa rd of directors has declared the C ompa ny's qua rterly ca s h dividend on its
Dividend, P a yable on December 31, 2009 common s tock. T he ca s h dividend of $0. 025 per s ha re of common s tock will be pa yable December 31, 2009, to all
s ha reholders of record a t the clos e of bus ines s on December 15, 2009.
Open Text C orp. (Nas daqG S : OTE X) O pen T ext C orp. E xpa nds P ortfolio of E C M O pen T ext C orp. a nnounced tha t it ha s expanded its portfolio of E C M s olutions for O racle(R ) Applications with the
S olutions for O ra cle(R ) Applica tions introduction of new content a cces s a nd a ccounts payable s olutions . Us ing thes e O pen T ext offerings , enterpris es ca n
a s s ociate O ra cle tra ns actions with bus ines s content to increa s e proces s efficiency, reduce opera ting cos ts a nd more
effectively ma na ge ris k. In a ny compa ny there are two prima ry s treams of informa tion. O ne is the s tructured-da ta s ide driven
by Oracle Applica tions . T he s econd is the flow of electronic a nd pa per content as s ets tha t s urround a trans a ction, ranging
from s imple email confirmations to forma l contra cts a s well as pa per documents . E nterpris es tha t can s ucces s fully correlate
thes e two s trea ms of informa tion ca n realize s ignificant productivity ga ins . T hat is where O pen T ext E C M s olutions for
O ra cle come in, ena bling cus tomers to ta ke full a dva ntage of the O pen T ext E C M S uite.
O pen T ext C ontent Acces s for O racle is a new offering that provides a s ingle point of acces s to O ra cle and non-O ra cle da ta
a nd content a s s ets from either the O racle us er interfa ce or from the O pen T ext E C M S uite. It ena bles
compa nies to orga nize a nd mana ge a ll content, including lega cy content, in virtua l folders and provides an eas y and
low-cos t wa y to archive documents . O rganizations often mus t reus e the s a me bus ines s content throughout multiple
a pplications , even though pa rts of documents are tied to s pecific a pplications s uch as E R P or C R M. O pen T ext
C ontent Acces s for O ra cle provides a mea ns of s ha ring this bus ines s content a cros s different a pplications for a
s ingle fa ce to cus tomers , partners or employees .
IAS E nergy, Inc . (OTC P K : IAS C .A) IAS E nergy Inc. , Annua l G eneral Meeting, Dec IAS E nergy Inc. , Annua l G enera l Meeting, Dec 08, 2009 Loca tion: T he R iver C lub, 11111 Hors es hoe W ay, R ichmond,
08, 2009 B ritis h C olumbia , C a na da.
MOK O.mobi L imited (AS X: MK B ) MO K O. mobi Limited announced it expects to MO K O. mobi Limited (AS X: MK B ) a nnounced a private pla cement of 10 million common s ha res a t AUD 0. 10 per s hare for
receive AUD 1 million in funding. gros s proceeds of AUD 1 million with s ophis ticated and profes s iona l inves tors on December 8, 2009.
The9 L imited (Nas daqG S : NC TY) W ebzen Inc. P urs ues T ra dema rk L itigation W ebzen Inc. a nnounced tha t they ha d begun purs uing tra demark litigation a ga ins t their T he9 L imited, for tra demark
Aga ins t T he9 L imited for T radema rk a greement a nd trans fer rights violation with MU. W ebzen firs t filed the tradema rk tra ns fer la ws uit at S eoul Dis trict C ourt,
Agreement a nd T ra ns fer R ights V iolation with manda ting T he9 to tra ns fer their tradema rk title of MU which wa s regis tered s ince 2002 in C hines e Nationa l C ha mber of
MU C ommerce to W ebzen Inc. W ebzen claims tha t T he9 violated the tra dema rk tra ns fer provis ion of their contra ct s igned in
2003, s ta ting that T he9 s ha ll trans fer all of MU-rela ted tra demarks to W ebzen per W ebzen's reques t as well a s res tra ining
from a ll of MU-related copyright infringement. W ebzen a ls o made clea r tha t this laws uit is to res erve their tra demark rights
for MU from T he9. W ebzen ha d previous ly allowed T he9 to regis ter MU under T he9 in order to provide s mooth initial s ervice
dis tribution to C hina , however W ebzen s till res erved the tra demark right of MU, and T he9 had a n obligation to trans fer their
title to W ebzen per their reques t. T he9 ha d been the s ervice provider of MU in C hina . T he dis pute between W ebzen and
T he9 began in J une, 2009 when T he9 revea led with tea s er
movies a nd original graphic works of their own MMO R P G named MUX in the well-known C hines e game s how 'C hina
J oy 2009, ' commenting tha t MUX will be the s equel to the MU s eries . As the origina l developer of MU, W ebzen bega n
tradema rk and copyright infringement with T he9. S ince MUX wa s revealed, W ebzen ha d reques ted T he9 to ceas e any
us a ge of MU in MUX bra nd a nd correct their comment a bout MUX being the s equel to MU, but T he9 ha s been
a voiding commenting or taking a ny a ction. T he9 announced through their webpa ge that MUX is their own 2. 5D online
game and will firs t revea l the ga me to the cons umers during 2009. As the dis pute grew, T he9 cha nged MUX into the
full na me, Miracle: Ultimate X, on their dis clos ure from S eptember, 2009 but they a re s till us ing MUX on their officia l
webs ite. W ebzen is a ls o prepa ring to file a complaint a ga ins t T he9 a nd MUX to K orea a nd C hina C opyrights
C ommis s ion in order to protect their tradema rks a nd copyrights of MU.
Figure 7a. Key Developments

Source. Capital IQ
Page 9
K ey Developments
C ompany Headline Notes
The9 L imited (Nas daqG S : NC TY) T he9 S igns Agreement with NE O W IZ on T he9 Limited s igned a n a greement with NE O W IZ G AME S on licens ing the operation of W orld of F ighter (W O F ) in the
L icens ing W O F R epublic of K orea . W OF is a ma s s ively multiplayer online role-pla ying ga me developed by T he9 Development C enter. T he9
a nnounced tha t it ha s pos ition the R & D a s a key s trategy in the future and that the W O F is the compa ny's flags hip product,
which is s ubject to fina l beta -tes t in C hina and will be put on market s oon.
DigitalP os t Interactive, Inc . Digita lP os t Intera ctive, Inc. pla ns to L aunch Digita lP os t Interactive, Inc. a nnounced pla ns to la unch T heC hurchP os t. com, a new digita l media s ha ring webs ite pla tform
(OTC B B : DG L P ) T heC hurchP os t. com for religious orga niza tions and their members and communities to connect with ea ch other in a s ecure, us er-friendly online
environment. T he C hurchP os t pla tform repres ents DigitalP os t's entry into church photography, a new vertica l market a nd a n
a dditional opportunity for Digita lP os t to grow its s a les cha nnel utilizing its a wa rd winning digital media s haring pla tform.
T heC hurchP os t. com is s cheduled to be live before the end of 2009. W ith more than 335, 000 churches --and more tha n 25
million members --in the U. S . alone, this new vertica l is potentially a s ubs tantia l market for Digita lP os t. B y providing the
pla tform and technology for thos e religious groups , Digita lP os t gains the opportunity to a ls o provide the s ecurity elements for
the churches ' a dminis tra tive needs as well a s the neces s ary s ecure us er functiona lity for a ll its digita l s ha ring members .
G ravity C o., L td (Nas daqG M: G R VY) G ra vity C o. , Ltd a nd S ofts tar E nterta inment G ra vity C o. L td. a nnounced tha t S ofts ta r E nterta inment Inc. a nd the compa ny have reached a s ettlement in the la ws uit
Inc. R ea ch S ettlement pending in the High C ourt of the R epublic of S ingapore. Under the deed of s ettlement, G ravity a greed to pa y US D 2 million
to S ofts ta r. T he company reflected accrua l for the s ettlement of K R W 1, 676 million, the balance after deducting the licens e
fee pa id by S ofts ta r in 2005, in its fina ncia l res ult for the third quarter ended S eptember 30, 2009. As a pa rt of the
s ettlement, the compa ny a nd S ofts ta r ha ve mutua lly agreed to cea s e a ll the cla ims a nd countercla ims a ga ins t ea ch other.
T he parties a ls o have agreed not to bring any further actions a ga ins t each other a s rega rds to the ma tters .
S hutterfly, Inc . (Nas daqG S : S F L Y) S hutterfly La unches W ink, a New S ervice T ha t S hutterfly, Inc. a nnounced W ink(T M), a new s ervice tha t combines rea l-time s ha ring with photo printing for the s ocial
G ives the S ocia l Network G eneration a networking genera tion. W ink enables cons umers to crea te and s hare printed photos trips (T M) us ing pictures from iP hones
R eas on to P rint a nd s ocial network s ites like F acebook and F lickr. P hotos trips ca n be delivered anywhere in the world for only $2. 50
including ta x a nd s hipping. W ink is available a s a free iP hone a pp a nd a full-fea tured webs ite a t wink. s hutterfly. com.
B igs tring C orp. (OTC B B : B S G C ) B igs tring C orp. Announces C hanges in O n December 7, 2009, W iener G oodma n & C ompany, P . C . combined with Mads en & As s ociates C P A's Inc. in a trans a ction
R egis tra nt's C ertifying Accounta nt purs uant to which W iener G oodma n combined a portion of its opera tions with Ma ds en a nd certain of the profes s iona l s ta ff
a nd partners of W iener G oodma n joined Ma ds en either a s employees or pa rtners of Mads en. As a res ult of this tra ns action,
W iener G oodma n res igned as the independent a uditors of B igs tring C orp. , effective December 7, 2009, a nd, with the
a pproval of the Audit C ommittee of the compa ny's B oard of Directors , Mads en wa s enga ged as the compa ny's independent
regis tered public accounting firm on the s a me da te. P rior to engaging Mads en, the company did not cons ult with Ma ds en
regarding the applica tion of a ccounting principles to a s pecific completed or contemplated trans a ction or regarding the type
of a udit opinions tha t might be rendered by Ma ds en on the compa ny's fina ncial s ta tements , a nd Ma ds en did not provide a ny
written or oral advice that was an important factor cons idered by the compa ny in rea ching a decis ion as to a ny s uch
a ccounting, a uditing or fina ncia l reporting is s ue.
Open Text C orp. (Nas daqG S : OTE X) O pen T ext C orp. Announces E xecutive O n December 9, 2009, O pen T ext C orp. a nnounced tha t K irk R oberts , E xecutive V ice P res ident, P roducts , will lea ve his
C hanges pos ition effective J anuary 1, 2010, a nd will leave the compa ny effective F ebrua ry 15, 2010. T he res pons ibilities of Mr.
R oberts will be a s s umed by E ugene R oma n, chief informa tion officer, and J a mes L a tha m, chief ma rketing officer.
Tree.C om, Inc . (Nas daqGM: TR E E ) T ree. C om, Inc. P rovides E a rnings G uida nce T ree. com, Inc. provided ea rnings guidance for the full yea r of 2009. F or the yea r, the compa ny a nnounced tha t with the
for the F ull Y ea r of 2009 improved revenue and lower opera ting expens es offs et s omewha t by the higher ma rketing cos ts , it anticipa tes opera ting
income in a ra nge of negative $0. 5 million to pos itive $4. 5 million. Adding back non-cas h compens a tion, amortization a nd
depreciation, the expectation is that the a bove will res ult in Adjus ted E B IT DA in a ra nge of $10 million to $15 million for
2010.
C hinaren, Inc .; S ohu.com Inc. S ohu. com Inc. a nd C hina ren, Inc. to Introduce S ohu. com Inc. and C hina ren, Inc. would introduce microblogging s ervice, a new kind of s ocia l networking s ervice (S NS ).
(Nas daqG S : S OHU) Microblogging S ervice T he S ohu's microblogging webs ite, t. s ohu. com, is till under maintenance a nd that of C hina R en opens for regis tra tion but is
under internal tes t, a s indicated on its webs ite, t. china ren. com. Microblogging is a form of multimedia blogging tha t a llow
us ers to s end brief text upda tes or s ha re photos a nd a udio clips with a res tricted group chos en by the us er. Many C hines e
internet s ervice providers , including S ina (S INA. NAS DAQ ) and T ecent, have launched the microblogging product in the
country and NetE as e (NT E S . NAS DAQ ) is a ls o mulling on introducing this s ervice. However, the profit pattern of this s ervice
is s till uncerta in in C hina. S ome indus try ins iders noted tha t the operation will fa ce huge policy ris k s ince the approving
mecha nis m for this product is s till incomplete in the country.
Tree.C om, Inc . (Nas daqGM: TR E E ) T ree. C om, Inc. L a unches T ree. C om, Inc. launched LendingT reeAutos . com, a dedica ted online porta l to help cons umers make s ma rt decis ions about
L endingtreea utos . C om to Help C ons umers buying their next car. T he new s ite covers the full s cope of ca r buying informa tion, tools and s ervices , providing one-s top
Ma ke S ma rt Decis ions about B uying T heir a cces s to new a nd us ed ca r s ea rches , vehicle his tory reports , monthly payment calculators , quotes from loca l dealers , tips
Next C ar a nd a dvice, a uto ins urance a nd fina ncing, and more. Already a trus ted provider of a uto loa ns to cons umers through
L endingT ree, T ree. com tapped into a proven tea m of indus try experts to crea te the mos t comprehens ive cha nnel for car
buying online.
P NI Digital Media Inc. (TS XV: P N) P NI Digita l Media Inc. to R eport Q 4, 2009 P NI Digital Media Inc. announced that they will report Q 4, 2009 res ults on December 14, 2009.
R es ults on December 14, 2009
Figure 7b. Key Developments – continued

Source. Capital IQ
Page 10
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-eight of the 89 companies have market caps under US$100 million, with 37 under
US$25 million. Online gaming companies dominate the top of the list, led by Tencent Holdings (SEHK:700) with a market
cap of approximately US$37.4 billion.
Market C ap (US D m)
Tenc ent Holdings L td. 37428. 2
Neteas e.c om Inc . 4791.4
S handa Interac tive Entertainment L td. 3535.6
Modern Times Group Mtg A B 3109.7
IA C/InterA c tiveCorp. 2547.0
G ree, Inc . 2418.2
Open Tex t Corp. 2156.6
Perf ec t World Co., L td. 2144.5
S ohu.c om Inc . 2047.5
Changy ou.c om L imited 1730.9
Giant Interac tive G roup, Inc . 1691.7
Mix i, Inc . 1390.7
Chines e Gamer International 1117.8
V alueClic k Inc . 842. 1
NEOWIZ Games Corporation 770. 2
K ings of t Co. L td. 739. 7
United Online Inc . 589. 6
S hutterf ly , Inc . 450. 3
S K Communic ations Co., L td. 375. 5
NetDragon WebS oft, Inc . 276. 9
CDC Corp. 253. 3
XING A G 250. 2
Gamania Digital Entertainment Co., L td. 236. 1
OA O R B C Inf ormation S y s tems 222. 0
My riad G roup A G 208. 0
GigaMedia L td. 200. 1
GungHo Online Entertainment, Inc . 195. 4
Openw ave S ys tems Inc . 188. 8
The9 L imited 179. 3
A c toz S of t Co., L td. 152. 9
DA DA S pA 142. 8
Fluid Mus ic Canada, Inc . 98.6
Tree.Com, Inc . 97.5
Y D Online Corp. 87.6
NeuLion Incorporated 74.9
Cyberplex Inc . 74.8
G ameOn Co L td. 71.9
HanbitS oft, Inc . 71.7
Eolith Co. L td. 69.9
TheS treet.c om, Inc . 67.9
Frogs ter Interactive Pic tures A G 67.5
GeoS entric Oy j 65.8
PNI Digital Media Inc . 58.2
S park Netw orks , Inc . 51.5
Gravity Co. , L td 39.5
DigitalTow n, Inc . 38.3
DXN Holdings B hd 37.2
Webz en Inc . 35.6
NeXplore Corporation 35.1
Ngi Group Inc . 32.6
Quepas a Corp. 29.9
A s knet A G 26.0
A Q Interactive, Inc . 24.6
S oc ialw is e, Inc . 23.4
Wiz z ard S of tw are Corporation 21.4
Northgate Tec hnologies L imited 20.8
Ex tens ions , Inc . 20.0
A c celeriz e New Media, Inc . 18.7
LookS mart, L td. 18.3
Y nk K orea Inc . 16.0
Dolphin Digital Media, Inc . 15.9
MOK O.mobi L imited 14.8
J umbuc k Entertainment L imited 13.6
Lingo Media Corporation 10.3
V OIS , Inc . 9.1
Magnitude Inf ormation S ys tems Inc . 8.9
is eemedia Inc . 8.0
S pec trumDNA , Inc . 6.8
B right Things plc 5.3
DigitalPos t Interactive, Inc . 4.6
UOMO Media, Inc 4.3
B roadWebA s ia Inc . 4.2
CornerWorld Corporation 2.9
Worlds .c om Inc . 2.4
S NA P Interactive, Inc . 2.2
B ey ond Commerc e, Inc . 2.0
B etaw ave Corporation 1.8
B igs tring Corp. 1.3
LiveWorld Inc . 1.0
Unis erve Communications Corp. 0.8
Wy nds torm Corporation 0.7
K A B Dis tribution Inc . 0.6
CLICK ER Inc . 0.4
A s s oc iated Media Holdings Inc . 0.4
The Parent Company 0.2
China Gatew ay Corporation 0.2
Dibz International, Inc . 0.0
S NM G lobal Holdings 0.0
S oc ial Media V entures Inc . 0.0
0 500 1,000 1,500 2,000 2, 500 3, 000 3,500 4,000
Figure 8. Market Cap Rankin

Source. Capital IQ
Page 11
TEV/Revenue (LTM) averages 5.7x: The overall average TEV/Revenue (LTM) multiple for our group is 5.7x (vs. 5.7x last
week) (Figure 9). Four companies trade above 25x revenue – SpectrumDNA, Inc. (OTCBB:SPXA) at 48.7x, Bigstring Corp.
(OTCBB:BSGC) at 37.4x, W orlds.com Inc. (OTCBB:W DDD) at 33.2x, and Tencent Holdings Ltd. (SEHK:700) at 25.9x. The
median of 1.7x compares to 1.6x last week. 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)
60. 0
48.7
50. 0
40. 0 37.4
33.2
30. 0
25.9
23.0
20.0
20. 0 17.0
14.815.2
12.6
11.0
9.0
10. 0
A verage, 5.7 6.9 7.6
5.6 5.7 5.7 6.0
3.7 4.4 4.5 4.6 4.7 4.7
2.5 2.7 2.7 3.0 3.13.2
1.3 1.3 1.3 1.4 1.4 1.5 1.6 1.8 1.9 1.9
0.0 0.0 0.0 0.1 0.2 0.2 0.2 0.2 0.3 0.3 0.4 0.4 0.4 0.5 0.5 0.6 0.7 0.7 0.70.8 0.8 1.0 1.0 1.0 1.0 1.1
0. 0
N E 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 ungHo O nline E ntertainment, Inc.
G a mania Digital E ntertainment C o., Ltd.
P N I Digital Media Inc.
C hines e G amer Interna tional

U nis erve C ommunications C orp.
O AO R B C Information S y s tems
N orthgate T echnologies L imited
DXN Holdings B hd
C hangy ou.com L imited

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.

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 .
S NAP Intera ctive, Inc.
United O nline Inc .
O pen T ex t C orp.
S pec trumDNA, Inc.

C hina G atewa y C orporation
AQ Intera ctive, Inc .
C y berplex Inc .
IAC /InterAc tiveC orp.
G igaMedia Ltd.
S pa rk N etwork s , Inc .
V alueC lic k Inc .
NetDra gon WebS oft, Inc .
Y D O nline C orp.
S ohu.com Inc .
is eemedia Inc .
E olith C o. Ltd.
F rogs ter Intera ctiv e P ictures AG
Mix i, Inc .
G ree, Inc .
As s ociated Media Holdings Inc .
T encent Holdings Ltd.

Worlds .com Inc .
XIN G AG
O penwave S y s tems Inc .
P erfect World C o., Ltd.
H anbitS oft, Inc .
Y nk K orea Inc .
S ocial Media V entures Inc .
B igs tring C orp.

My riad G roup AG
S hutterfly , Inc .
K ings oft C o. Ltd.
Acceleriz e New Media , Inc .

DADA S pA
Ac toz S oft C o. , Ltd.
Wiz z ard S oftware C orporation

As k net AG
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 (17), trading at an average multiple of 14.0x (vs. 12.7x last week). On a geographic basis, the
United States has the most companies (38), trading at an average of 8.1x revenue (vs. 7.2x last week) (Figure 11). Ten of
the companies are Canadian (average 6.8x revenue).
Average TEV/LTM Revenue - By Country

Average TEV/LTM Revenue - By Exchange 16.0 14.8
16.0 14.8
14.0
14.0
14.0 12.0
12.0
10.6 10.0 10.2
10.0
10.2
(x)
8.0 8.1
(x)
8.0 8.3 7.5 7.5 6.8

6.0 6.9 6.7 6.7 6.0 5.8 5.3
4.0 3.8 3.2 4.0 3.4
2.7 2.3 3.2
1.8 1.6 1.3 0.8 0.6 2.3 1.8
2.0 0.4 0.2 2.0 0.8 0.7
0.6 0.4
0.0 0.0 0.0 0.0
OTCPK
OTCBB
GTSM
NasdaqGM
HLSE
SEHK
TSE
KOSE
NasdaqGS
OSE
CM
RTS
OM
XTRA
TSX
AMEX
KLSE
BSE
SWX
TSXV
ASX
Germany
Finland
United
China
Japan
Canada
Hong Kong
Malaysia
India
Russia
Italy
South
Korea
States
Australia
Taiwan
Switzerland
Sweden
# Companies 1 17 3 2 2 3 11 5 4 4 1 2 6 1 14 1 1 1 1 5 1
# Companies 1 2 38 3 10 3 6 9 1 8 1 1 1 1 1 1
Figures 10 & 11. TEV/Revenue Ranking (Exchange, Country)

Source. Capital IQ
Page 12
TEV/EBITDA (LTM) averages 10.5x: The average multiple for the 35 companies with positive EBITDA (and multiples
under 100x) is 10.5x LTM EBITDA (vs. 10.3x last week), led by Tencent Holdings Ltd. (SEHK:700) at 36.4x (Figure 12).
Fifteen companies have EBITDA multiples under 7x. The median multiple is 8.5x (vs. 8.4x last week).
T E V/L T M E B IT DA (x)
40. 0
36. 4
35. 0
30. 0
30. 0 27. 3
26. 2
24. 3
25. 0
19. 0
20. 0
15. 0 13. 5 13. 7

12. 5 12. 9
11. 5 11. 7 12. 0
A verage, 10.5 10. 6 11. 0 11. 1
8. 5 9. 0
10. 0 7. 6
6. 9 7. 4
5. 2 5. 8 6. 0
4. 0 4. 4 4. 4 4. 7 4. 8
5. 0
1. 2 1. 8
0. 4 0. 5 0. 8 1. 0
0. 0
NE O WIZ G ames C orporation

J umbuck E ntertainment L imited
G ungH o O nline E ntertainment, Inc .
G amania Digital E ntertainment C o. , Ltd.
P NI Digital Media Inc .
C hines e G amer International
U nis erve C ommunications C orp.

O AO R B C Information S y s tems
C hangy ou. c om L imited

T ree. C om, Inc .
C DC C orp.
S K C ommunic ations C o. , Ltd.

S NAP Interac tive, Inc .
T heS treet. c om, Inc .
U nited O nline Inc .
O pen T ex t C orp.
AQ Interac tive, Inc .
NetDragon WebS oft, Inc.
C yberplex Inc.
S park Network s , Inc .
V alueC lic k Inc .
S ohu. c om Inc .
Y D O nline C orp.
IAC /InterAc tiveC orp.
G ree, Inc .
Mix i, Inc .
XING AG
P erfec t World C o. , L td.
Y nk K orea Inc.
O penwave S y s tems Inc.

K ings oft C o. L td.
S hutterfly , Inc.
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 (17), trading at an average multiple of 1.2x. On a geographic basis, the
United States has the most companies (38), trading at an average of 6.8x EBITDA (Figure 14). Ten of the companies are
Canadian (average 6.6x EBITDA).
Average TEV/LTM EBITDA - By Exchange Average TEV/LTM EBITDA - By Country

20.0
35.0 30.4 19.0
18.0
30.0
16.0 17.4
25.0 14.0
20.0 12.0 13.9 13.1
17.4 12.9
(x)
15.6 11.5
(x)
15.0 13.9 12.9 10.0 11.1

11.5 8.0
10.0 8.5 8.0 6.8 6.6
6.0 5.8
4.8 4.7 4.6 6.0 6.0
5.0 1.2 1.0
0.4 4.0
0.0 1.0
2.0
OTCBB
GTSM
NasdaqGM
TSE
KOSE
NasdaqGS
SEHK
OSE
RTS
OM
CM
XTRA
AMEX
TSX
TSXV
ASX
0.0 0.4
Germany
Canada
Japan
Hong
United
China
Russia
Italy
South
Korea
Kong
States
Taiwan
Australia
Sweden
# Companies 4 2 5 6 1 3 14 3 1 1 2 4 5 17 2 1
# Companies 9 3 8 6 1 3 1 38 10 1 2 1
Figures 13 & 14. TEV/EBITDA Ranking (Exchange, Country)

Source. Capital IQ
Page 13
P/E (LTM) averages 21.5x: The average multiple for the 33 companies with positive earnings (and multiples under 100x)
is 21.5x LTM EPS (vs. 21.5x last week), led by HabitSoft, Inc. (KOSE:A047080) with a 71.5x multiple (Figure 15). Thirteen
companies have P/E multiples under 10x. The median is 12.5x.
P /E L T M (x)
80.0
71.5
69.6
70.0 65.0
63.3
60.0
50.0 47.1
40.1 40.9
40.0 36.7
33.0 34.3
30.0 24.9
A verage, 21.5 22.1
20.0 16.2 16.7 17.1
13.4
11.7 12.0 12.5
9.3 10.8
10.0 6.8 7.2 7.9
2.3 2.6 2.6 3.9 5.5
1.8 2.0
0.0 0.0
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.

G ravity C o., Ltd
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.
Y D O nline C orp.
IAC /InterActiveC orp.
S ohu.com Inc.
NetDragon W ebS oft, Inc.
S park Network s , Inc.
G ree, Inc.
T encent H oldings Ltd.
Mix i, Inc.
XING AG
W ebz en Inc.
P erfect World C o., Ltd.
LiveW orld Inc.
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 (17), trading at an average multiple of 12.0x. On a geographic basis, the United States has
the most companies (38), trading at an average of 25.8x earnings (Figure 17). Ten of the companies are Canadian
(average 26.9x EPS).
Average P/E - By Exchange Average P/E - By Country

45.0
70.0 38.6
63.3 40.0
60.0
35.0
50.0
30.0 33.0
40.0 39.2 36.7 26.9
35.7 25.0 25.8
(x)
33.0 23.8
(x)
30.0 31.6 29.6 22.4

20.0
20.0 17.1 16.7 15.0 16.7 13.0
12.0 11.1
6.8 5.5
10.0 10.0 5.5
3.9 3.9
0.0 1.8 0.0 5.0
OTCPK
OTCBB
GTSM
NasdaqGM
TSE
OSE
KOSE
SEHK
NasdaqGS
OM
XTRA
AMEX
TSX
KLSE
NYSE
ASX
0.0
Germany
Japan
Canada
United
China
Malaysia
South
Korea
States
Taiwan
Australia
Sweden
# Companies 11 5 1 6 3 3 2 2 1 17 14 4 1 2 1 5
# Companies 6 3 9 38 8 3 1 10 1 2
Figures 16 & 17. P/E Ranking (Exchange, Country)

Source. Capital IQ
Page 14
UPCOMING EVENTS
There are no upcoming earnings events in our W eb 2.0 universe.
Figure 18. Earnings Calendar
Page 15

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 18.7 0.65 18.2% -13.3% 8.3% 85.7% 85.7% -18.8%
A ctoz S oft C o. , L td. KR W A052790 K OS E 152.9 21, 050 1. 2% 34.1% 16.0% -27.3% 104. 4% -41.5%
A Q Interactive, Inc. JPY 3838 TS E 24.6 40, 500 -0.1% -8.0% -24.3% -47.3% 45.7% -51.2%
A s knet AG E UR XT R A :A5A XT R A 26.0 4 0. 6% 16.6% 6.7% 26.2% -17. 0% -20.0%
A s s ociated Media H oldings Inc. US D AS MH OT C P K 0.4 0.01 -98.8% 0.0% -35.7% -55.0% 200. 0% -98.8%
B igs tring C orp. US D BSGC OT C B B 1.3 0.02 -25.0% -34.4% 5.0% -27.6% 5.0% -63.2%
B eta wave C orpora tion US D B W AV OT C B B 1.8 0.06 -42.7% 110.0% -10.0% -37.0% -60. 6% -74.8%
B eyond C ommerce, Inc. US D B Y OC OT C B B 2.0 0.04 -27.1% -41.7% -81.6% -96.3% -95. 3% -98.1%
B right T hings plc GB P AIM:B G T A IM 5.3 0.01 0. 0% 4.3% -10.9% -27.1% 6.5% -50.4%
B roadW ebA s ia Inc. US D BWBA OT C P K 4.2 0.05 0. 0% 150.0% -78.3% -78.3% -95. 0% -98.3%
C DC C orp. US D C H IN.A Nas da qG S 253.3 2.39 -1.6% -4.0% -18.7% 55.2% 85.3% -39.0%
C ha ngyou.com Limited US D C Y OU Nas da qG S 1, 730.9 31.47 1. 5% -6.9% -23.8% -10.1% NM -34.9%
C hina G a tewa y C orporation US D CGWY OT C P K 0.2 0.01 350.0% 350.0% -40.0% 350.0% 350. 0% -70.0%
C hines e G a mer International TWD G T S M:3083 GTS M 1, 117.8 431.00 1. 3% -7.3% -0.9% 41.3% 379. 4% -17.0%
C LIC K E R Inc. US D CLK Z OT C B B 0.4 0.01 -23.1% -16.7% 0.0% 0. 0% -92. 9% -93.8%
C ornerW orld C orpora tion US D CW R L OT C B B 2.9 0.03 0. 0% -50.0% -50.0% -57.1% -93. 6% -92.7%
C yberplex Inc. C AD T S X: C X TS X 74.8 1.18 0. 9% -12.6% -7.1% -34.1% 227. 8% -40.7%
DADA S pA E UR C M:DA CM 142.8 6.02 -4.1% -14.1% -14.1% -1.4% -14. 1% -26.6%
DXN Holdings B hd MY R DXN K LS E 37.2 0.57 -0.9% -10.2% -1.7% 40.7% 50.0% -17.4%
Dibz Interna tional, Inc. US D DIB Z OT C P K 0.0 0.01 316.7% 316.7% 316.7% 400.0% -50. 0% 0.0%
DigitalP os t Intera ctive, Inc. US D DG LP OT C B B 4.6 0.05 0. 0% -10.2% -1.9% 32.5% 152. 4% -46.5%
DigitalT own, Inc. US D DG T W OT C B B 38.3 1.40 0. 0% 38.6% -20.0% -44.0% -53. 3% -60.0%
Dolphin Digital Media, Inc. US D DP DM OT C B B 15.9 0.28 3. 7% -20.0% -33.3% -44.0% -53. 3% -65.0%
E olith C o. L td. KR W A041060 K OS E 69.9 565.00 4. 6% 2.7% -35.8% -22.1% -7.4% -51.3%
E xtens ions , Inc. US D E XT I OT C P K 20.0 0.45 50.0% 80.0% 125.0% NM 350. 0% -55.4%
F luid Mus ic C anada, Inc. C AD T S X: F MN TS X 98.6 1.70 -5.6% -5.6% 21.4% 126.7% 593. 9% -20.9%
F rogs ter Intera ctive P ictures AG E UR FR G XT R A 67.5 18.00 -4.0% -2.7% -2.7% 132.3% 237. 7% -16.2%
G amania Digita l E ntertainment C o., L td. TWD 6180 GTS M 236.1 49.90 5. 9% 7.1% 5.1% -1.4% 205. 2% -27.5%
G ameO n C o L td. JPY 3812 TS E 71.9 66, 500 1. 5% -2.3% -34.7% -38.7% -45. 5% -50.0%
G eoS entric Oyj E UR G E O1V H LS E 65.8 0.05 0. 0% -16.7% 0.0% 25.0% 25.0% -16.7%
G ia nt Interactive G roup, Inc. US D GA NY S E 1, 691.7 7.47 3. 9% 4.2% -2.7% -7.4% 20.5% -21.9%
G igaMedia L td. US D G IG M Nas da qG S 200.1 3.67 -4.9% -14.5% -24.8% -32.2% -38. 3% -52.5%
G ra vity C o., Ltd US D GR VY Nas da qG M 39.5 1.42 -2.7% 1.4% -20.2% 30.3% 136. 7% -46.0%
G ree, Inc. JPY T S E :3632 TS E 2, 418.2 4, 830 8. 8% -6.6% 3.5% 59.9% 84.0% -15.4%
G ungH o Online E ntertainment, Inc. JPY 3765 OS E 195.4 152, 500 -1.0% -27.4% -41.1% -32.2% 42.7% -45.5%
H anbitS oft, Inc. KR W A047080 K OS E 71.7 3, 910 0. 3% 10.9% -6.3% -18.3% 15.3% -41.1%
IAC /InterA ctiveC orp. US D IA C I Nas da qG S 2, 547.0 19.30 1. 6% -1.6% -4.4% 18.2% 18.0% -9.3%
is eemedia Inc. C AD IE E T S XV 8.0 0.17 -13.2% -8.3% 175.0% 120.0% 266. 7% -38.9%
J umbuck E ntertainment Limited AU D AS X: J MB AS X 13.6 0.32 0. 0% -8.6% -13.5% -22.0% -17. 9% -36.0%
K AB Dis tribution Inc. C AD T S X: K AB TS X 0.6 0.01 -50.0% -99.2% -99.2% -98.6% -99. 4% -99.4%
K ings oft C o. L td. HK D 3888 S E HK 739.7 5.24 -7.3% -29.5% -35.6% 2. 7% 103. 1% -44.7%
L ingo Media C orpora tion C AD T S XV :LM T S XV 10.3 0.90 -6.2% -8.2% -10.0% -14.3% -10. 0% -37.1%
L iveW orld Inc. US D LV W D OT C P K 1.0 0.03 0. 0% -3.1% -22.5% -69.0% -11. 4% -87.6%
L ookS mart, L td. US D LO OK Nas da qG M 18.3 1.07 0. 0% -3.6% -9.3% -18.3% -33. 1% -40.0%
Ma gnitude Information S ys tems Inc. US D MAG Y OT C B B 8.9 0.02 -13.0% 33.3% 122.2% 66.7% 33.3% -48.7%
Mixi, Inc. JPY 2121 TS E 1, 390.7 807,000.00 2. 9% 19.9% 47.8% 66.7% 39.1% -6.7%
Modern T imes G roup Mtg AB SEK MT G B OM 3, 109.7 328.60 -0.3% -1.5% 11.0% 55.0% 105. 4% -3.4%
MO K O .mobi L imited AU D MK B AS X 14.8 0.16 18.5% 52.4% 128.6% 220.0% 166. 7% -20.0%
Myriad G roup AG C HF MY R N S WX 208.0 4.85 0. 2% 3.9% 7.8% -5.8% -23. 9% -27.6%
NE O W IZ G ames C orporation KR W A095660 K OS E 770.2 43,600.00 -1.4% 5.1% 11.5% 16.4% 327. 5% -2.9%
NetDra gon W ebS oft, Inc. HK D 777 S E HK 276.9 4.06 -6.2% -18.8% -30.6% -18.5% 37.6% -43.2%
Netea s e. com Inc. US D NT E S Nas da qG S 4, 791.4 37.02 -0.6% -7.5% -12.2% 5. 5% 76.1% -23.7%
NeuLion Incorpora ted C AD T S X: NL N TS X 74.9 0.70 -6.7% 0.0% -32.0% -6.7% 125. 8% -46.2%
NeXplore C orpora tion US D NXP C OT C P K 35.1 0.63 -7.4% -8.7% 14.5% -10.0% -33. 7% -40.0%
Ngi G roup Inc. JPY 2497 TS E 32.6 23,570.00 -2.4% -5.2% -17.3% -39.3% -54. 6% -60.7%
Northgate T echnologies Limited INR 590057 BSE 20.8 28.60 -6.4% -1.4% -36.8% -31.8% -57. 7% -61.6%
O pen T ext C orp. US D OT E X Nas da qG S 2, 156.6 38.25 -2.5% -0.5% 4.0% 5. 1% 29.1% -7.7%
O penwa ve S ys tems Inc. US D OP W V Nas da qG S 188.8 2.26 0. 9% -4.6% -20.7% -2.6% 253. 8% -27.8%
P erfect W orld C o., Ltd. US D PWRD Nas da qG S 2, 144.5 43.10 -0.6% -7.0% -2.4% 74.2% 164. 4% -14.6%
P NI Digital Media Inc. C AD T S XV :P N T S XV 58.2 1.85 8. 2% 8.8% -0.5% 1. 6% 46.8% -13.1%
Q uepa s a C orp. US D QP S A OT C B B 29.9 2.35 38.2% 67.9% 34.3% 291.7% 55.6% -6.0%
O AO R B C Information S ys tems US D R BCI R TS 222.0 1.60 0. 0% 6.7% 52.4% 62.4% 6.7% -5.9%
S ha nda Interactive E nterta inment L td. US D S NDA Nas da qG S 3, 535.6 52.57 1. 8% 7.8% -1.2% -2.1% 73.3% -19.1%
S hutterfly, Inc. US D S F LY Nas da qG S 450.3 17.54 11.3% 13.5% 16.6% 27.8% 147. 7% -3.3%
S K C ommunications C o. , L td. KR W A066270 K OS E 375.5 10,700.00 12.0% 48.0% 18.1% -7.4% 87.4% -16.7%
S NA P Intera ctive, Inc. US D S TVI OT C B B 2.2 0.20 0. 0% -50.0% -50.0% -71.4% -71. 4% -81.5%
S NM G loba l H oldings US D S NMN OT C P K 0.0 0.00 -30.0% -30.0% -88.3% -90.0% -93. 0% -96.5%
S ocial Media V entures Inc. US D S MV I OT C P K 0.0 0.01 -22.7% -35.6% -94.2% -42.0% -99. 5% -99.6%
S ocialwis e, Inc. US D S CLW OT C B B 23.4 0.50 0. 0% 6.4% -16.7% -31.5% -44. 4% -61.5%
S ohu.com Inc. US D S O HU Nas da qG S 2, 047.5 53.24 1. 7% -4.9% -22.5% -16.6% 17.1% -26.4%
S pa rk Networks , Inc. US D LO V A ME X 51.5 2.50 5. 5% -4.6% 16.3% 9. 2% -7.4% -15.0%
S pectrumDNA, Inc. US D S P XA OT C B B 6.8 0.14 0. 0% -6.7% -36.4% -30.0% -33. 3% -68.9%
T encent H oldings Ltd. HK D 700 S E HK 37,428. 2 160 8. 3% 7.5% 28.4% 83.0% 212. 9% -0.9%
T he P a rent C ompany US D K IDS . Q OT C P K 0.2 0.01 0. 0% 0.0% -36.4% -78.8% -97. 9% -98.9%
T he9 L imited US D NC T Y Nas da qG S 179.3 7.14 -4.5% -4.0% -12.3% -30.5% -48. 1% -57.1%
T heS treet.com, Inc. US D TS CM Nas da qG M 67.9 2.22 -2.6% -14.6% -14.0% 8. 3% -32. 7% -37.5%
T ree.C om, Inc. US D TR E E Nas da qG M 97.5 8.94 23.7% 25.4% 11.2% 5. 8% 261. 9% -31.6%
U nis erve C ommunica tions C orp. C AD T S XV :US S T S XV 0.8 0.04 -22.2% 0.0% -22.2% -30.0% 40.0% -65.0%
U nited O nline Inc. US D UNT D Nas da qG S 589.6 6.97 -0.4% -14.6% -14.6% 7. 9% 22.7% -26.3%
U OMO Media, Inc US D UO MO OT C B B 4.3 0.05 -16.7% -26.5% -61.5% -72.2% -54. 5% -95.3%
V alueC lick Inc. US D V CLK Nas da qG S 842.1 9.83 -2.0% -2.5% -12.5% -17.9% 29.0% -29.5%
V OIS , Inc. US D V O IS OT C B B 9.1 0.01 -7.6% 29.4% 144.4% 214.3% 266. 7% -52.2%
W ebzen Inc. US D W ZE N Nas da qG M 35.6 3.00 0. 0% 3.1% 2.0% -20.0% 215. 8% -35.9%
W izzard S oftwa re C orporation US D W ZE A ME X 21.4 0.40 5. 3% -25.9% -20.0% -41.2% -57. 0% -60.4%
W orlds .com Inc. US D W DDD OT C B B 2.4 0.05 -55.0% -55.0% -59.1% -50.0% -77. 5% -80.4%
W ynds torm C orpora tion US D W Y ND OT C P K 0.7 0.04 0. 0% -60.0% -60.0% -92.2% -66. 7% -92.2%
XING A G E UR O1B C XT R A 250.2 32.41 -3.0% -2.7% -1.8% -4.3% 35.7% -14.7%
Y D Online C orp. KR W A052770 K OS E 87.6 6,970.00 -0.4% 8.9% -27.8% -24.3% 2.3% -43.8%
Y nk K orea Inc. KR W A023770 K OS E 16.0 3,570.00 -3.4% -23.7% -16.2% -44.1% -41. 8% -59.0%
H igh 350.0% 350.0% 316.7% 400.0% 593. 9% 0.0%
L ow -98.8% -99.2% -99.2% -98.6% -99. 5% -99.6%
Average 830.3 4.2% 6.4% -3.2% 10.2% 54.4% -43.8%
Media n 0. 0% -3.6% -10.9% -8.7% 21.6% -40.7%
Figure 19. Price Performance

Source. Capital IQ
Page 16

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 18.7 5.7x - - - - - -
Actoz S oft C o., Ltd. G aming S outh K orea K OS E A052790 152.9 1.0x - 4. 4x - 22.1x - 2.3x
AQ Intera ctive, Inc. G aming J apan TS E 3838 24.6 0.0x - 0. 5x - - - 0.4x
As knet A G G aming G erma ny XT R A XT R A :A5A 26.0 0.2x - - - - - -
As s ocia ted Media Holdings Inc. Mobile U nited S ta tes OTCP K AS MH 0.4 12.6x - - - - - -
B igs tring C orp. Ins ta nt Mes s aging U nited S ta tes OTCB B BSGC 1.3 37.4x - - - - - -
B etawave C orpora tion Media U nited S ta tes OTCB B B W AV 1.8 - - - - - - 1.3x
B eyond C ommerce, Inc. S ocial Networking U nited S ta tes OTCB B B YOC 2.0 1.0x - - - - - -
B right T hings plc S ocial Networking U nited K ingdom AIM AIM:B G T 5.3 - - - - - - -
B roadW ebAs ia Inc. S ocial Networking U nited S ta tes OTCP K BWBA 4.2 - - - - - - -
C DC C orp. G aming H ong K ong N as da qG S C HIN.A 253.3 0.7x 0.7x 11.1x 5.3x - 91.9x 10.7x
C hangyou.com Limited G aming C hina N as da qG S C Y OU 1,730.9 5.6x 4.6x 9. 0x 7.1x 11.7x 10.1x 9.0x
C hina G atewa y C orpora tion Mobile U nited S ta tes OTCP K CGW Y 0.2 0.0x - - - - - -
C hines e G amer Interna tional G aming T a iwa n GTS M G T S M:3083 1,117.8 15.2x 15.5x 26.2x 19.1x 34.3x 21.4x 16.4x
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 2.9 1.9x - - - - - -
C yberplex Inc. A dvertis ing C ana da TS X T S X: C X 74.8 0.5x 0.4x 4. 7x 3.7x 6.8x 7.1x 2.7x
DA DA S pA S ocial Networking Italy CM C M:DA 142.8 0.8x 0.8x 6. 0x 5.6x - 17.6x -
DXN Holdings B hd S ocial Networking Mala ys ia K LS E DXN 37.2 0.6x - - - 5.5x - 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 4.6 5.7x - - - - - -
DigitalT own, Inc. S ocial Networking U nited S ta tes OTCB B DG T W 38.3 - - - - - - -
Dolphin Digital Media, Inc. S ocial Networking U nited S ta tes OTCB B DP DM 15.9 - 1.1x - - - 1.1x -
E olith C o. L td. G aming S outh K orea K OS E A041060 69.9 4.7x - - - - - 3.1x
E xtens ions , Inc. C ontent U nited S ta tes OTCP K E XT I 20.0 - - - - - - -
F luid Mus ic C a nada, Inc. Media U nited S ta tes TS X T S X:F MN 98.6 17.0x 17.0x - - - - 7.3x
F rogs ter Interactive P ictures A G G aming G erma ny XT R A FR G 67.5 6.9x - - - - - 8.3x
G amania Digital E ntertainment C o., Ltd. G aming T a iwa n GTS M 6180 236.1 1.4x - 8. 5x - 24.9x - 3.0x
G ameO n C o Ltd. G aming J apan TS E 3812 71.9 - - - - 7.2x 7.5x 0.8x
G eoS entric Oyj Mobile F inland H LS E G E O1V 65.8 14.8x - - - - - -
G iant Interactive G roup, Inc. G aming C hina NY S E GA 1,691.7 - - - - 1.8x 15.8x 0.3x
G igaMedia Ltd. G aming T a iwa n N as da qG S G IG M 200.1 0.7x 0.7x - 3.3x 7.9x 8.2x 1.7x
G ravity C o., Ltd G aming S outh K orea N as da qG M GR VY 39.5 - - - - 0.0x - 0.0x
G ree, Inc. S ocial Networking J apan TS E T S E : 3632 2,418.2 11.0x 6.4x 19.0x 11.5x 40.9x 22.9x 19.4x
G ungH o O nline E nterta inment, Inc. Media J apan OS E 3765 195.4 1.3x 1.1x 5. 8x - 36.7x 12.1x 6.0x
Ha nbitS oft, Inc. G aming S outh K orea K OS E A047080 71.7 1.0x - - - 71.5x - 2.0x
IAC /InterActiveC orp. Media U nited S ta tes N as da qG S IAC I 2,547.0 0.7x 0.6x 11.0x 4.6x 10.8x 28.3x 1.3x
is eemedia Inc. C ontent C ana da T S XV IE E 8.0 4.6x - - - - - -
J umbuck E ntertainment Limited S ocial Networking Aus tra lia AS X AS X:J MB 13.6 0.4x 0.4x 1. 0x 1.1x 3.9x 2.8x 1.3x
K A B Dis tribution Inc. C ontent C ana da TS X T S X:K AB 0.6 - - - - - - 0.0x
K ings oft C o. Ltd. G aming C hina S E HK 3888 739.7 4.7x 3.9x 11.7x 8.1x 16.2x 11.6x 3.9x
Lingo Media C orpora tion L earning C ana da T S XV T S XV : LM 10.3 7.6x - - - - - -
LiveW orld Inc. S ocial Networking U nited S ta tes OTCP K LV W D 1.0 - - - - 63.3x - 0.4x
LookS ma rt, L td. Direct Marketing U nited S ta tes N as da qG M L OOK 18.3 - - - - - - 0.7x
Magnitude Information S ys tems Inc. S ocial Networking U nited S ta tes OTCB B MA G Y 8.9 - - - - - - -
Mixi, Inc. S ocial Networking J apan TS E 2121 1,390.7 9.0x 7.4x 27.3x 22.6x 69.6x 52.7x 8.9x
Modern T imes G roup Mtg AB Media S weden OM MT G B 3,109.7 1.8x 1.7x 12.9x 12.5x 16.7x 15.0x -
MOK O .mobi Limited S ocial Networking Aus tra lia AS X MK B 14.8 20.0x - - - - - 15.2x
Myriad G roup AG Mobile S witzerla nd SWX MY R N 208.0 3.2x - - - - - -
NE OW IZ G ames C orporation G aming S outh K orea K OS E A095660 770.2 3.7x 2.8x 13.7x 9.6x 40.1x 13.7x 20.3x
NetDra gon W ebS oft, Inc. G aming C hina S E HK 777 276.9 1.4x 1.1x 4. 4x 4.1x 13.4x 13.3x 1.5x
Netea s e.com Inc. G aming C hina N as da qG S NT E S 4,791.4 - - - - 2.6x 13.9x 0.7x
NeuLion Incorporated V ideo C ana da TS X T S X:NL N 74.9 2.5x - - - - - 10.4x
NeXplore C orporation C ontent U nited S ta tes OTCP K NXP C 35.1 23.0x - - - - - -
Ngi G roup Inc. Media J apan TS E 2497 32.6 - - - - - - 0.6x
Northgate T echnologies Limited Direct Marketing India BS E 590057 20.8 0.4x - - - - 1.1x -
O pen T ext C orp. C ollabora tion C ana da N as da qG S OT E X 2,156.6 2.7x 2.4x 10.6x 8.8x 47.1x 12.8x -
O penwave S ys tems Inc. Mobile U nited S ta tes N as da qG S OP W V 188.8 0.4x 0.4x 13.5x 4.2x - 31.8x 2.6x
P erfect W orld C o., Ltd. G aming C hina N as da qG S PWRD 2,144.5 0.5x 2.4x 0. 8x 4.6x 2.6x 12.5x 1.2x
P N I Digital Media Inc. Digita l Ima ging C ana da T S XV T S XV :P N 58.2 2.7x 2.2x 24.3x 7.3x - 14.8x 20.3x
Q uepa s a C orp. S ocial Networking U nited S ta tes OTCB B QP S A 29.9 - - - - - - -
O AO R B C Information S ys tems Media R us s ia R TS R BCI 222.0 0.0x 1.0x 0. 4x 5.7x - 6.5x -
S handa Interactive E nterta inment Ltd. G aming C hina N as da qG S S NDA 3,535.6 - - - - 2.3x 14.4x 0.4x
S hutterfly, Inc. Digita l Ima ging U nited S ta tes N as da qG S S FLY 450.3 1.5x 1.4x 12.5x 7.9x - - 2.7x
S K C ommunications C o., Ltd. S earch S outh K orea K OS E A066270 375.5 1.9x - 30.0x - - - -
S N AP Interactive, Inc. Dating U nited S ta tes OTCB B S TVI 2.2 0.2x - 1. 2x - 12.0x - 1.2x
S N M G lobal Holdings Media U nited S ta tes OTCP K S NMN 0.0 1.1x - - - - - -
S ocial Media V entures 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 23.4 - - - - - - -
S ohu.com Inc. G aming C hina N as da qG S S O HU 2,047.5 3.0x 2.6x 6. 9x 5.9x 12.5x 14.3x 3.7x
S park N etworks , Inc. S ocial Networking U nited S ta tes AME X L OV 51.5 1.0x - 4. 8x - 17.1x - 23.2x
S pectrumDN A, Inc. Media U nited S ta tes OTCB B S P XA 6.8 48.7x - - - - - -
T encent Holdings Ltd. P orta l C hina S E HK 700 37,428.2 25.9x 17.1x - 33.4x 65.0x 43.6x 28.9x
T he P a rent C ompany Media U nited S ta tes OTCP K K IDS .Q 0.2 0.2x 0.2x - 12.8x - - -
T he9 L imited G aming C hina N as da qG S NC T Y 179.3 - - - - 2.0x - 0.1x
T heS treet.com, Inc. Media U nited S ta tes N as da qG M TS CM 67.9 0.1x 0.1x 1. 8x - - - 0.9x
T ree.C om, Inc. P orta l U nited S ta tes N as da qG M TREE 97.5 0.3x 0.3x 7. 4x 8.7x - - 1.4x
Unis erve C ommunications C orp. S ocial Networking C ana da T S XV T S XV :US S 0.8 0.3x - 36.4x - - - -
United Online Inc. Media U nited S ta tes N as da qG S U NT D 589.6 0.8x 0.9x 4. 0x 3.5x - 5.3x -
UO MO Media, Inc Media C ana da OTCB B UO MO 4.3 6.0x - - - - - -
V a lueC lick Inc. Media U nited S ta tes N as da qG S V CLK 842.1 1.3x 1.3x 5. 2x 5.1x - 15.9x 4.5x
V O IS , Inc. S ocial Networking U nited S ta tes OTCB B V OIS 9.1 - - - - - - 57.9x
W ebzen Inc. G aming S outh K orea N as da qG M W ZE N 35.6 - - - - 0.0x - 0.0x
W izzard S oftware C orporation P odca s ting U nited S ta tes AME X W ZE 21.4 4.4x - - - - - -
W orlds .com Inc. C ontent U nited S ta tes OTCB B W DDD 2.4 33.2x - - - - - -
W ynds torm C orporation C ontent U nited S ta tes OTCP K W Y ND 0.7 - - - - - - -
XIN G AG S ocial Networking G erma ny XT R A O1B C 250.2 3.1x 2.4x 11.5x 6.7x 33.0x 16.1x 7.1x
Y D Online C orp. G aming S outh K orea K OS E A052770 87.6 1.6x 1.4x 7. 6x 6.2x 9.3x 8.8x 2.8x
Y nk K orea Inc. G aming S outh K orea K OS E A023770 16.0 1.3x - 12.0x - - - 0.8x
High 37,428.2 48.7x 17.1x 36.4x 33.4x 71.5x 91.9x 57.9x
Low 0.0 0.0x 0.1x 0. 4x 1.1x 0.0x 1.1x 0.0x
Average 830.3 5.7x 3.2x 10.5x 8.5x 21.5x 17.7x 6.4x
Median 39.5 1.7x 1.3x 8. 5x 6.5x 12.5x 13.8x 2.5x
Figure 20. Valuation Comparison

Source. Capital IQ
Page 17

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 38 C hina 49, 633. 4 C hina 4,963. 3 C hina 4,152. 4 C hina 2, 070. 2 C hina 48. 8%
C a na da 10 U nited S ta tes 5, 811. 3 S weden 2,974. 2 United S tates 3,887. 3 S weden 304. 6 A us tralia 42. 8%
C hina 10 J a pan 3, 871. 5 J apan 645. 3 S weden 1,982. 6 United S tates 290. 0 T aiwan 37. 1%
S outh K orea 8 S weden 2, 974. 2 T aiwan 577. 9 C a na da 1,015. 0 C a na da 200. 0 J apan 24. 2%
J a pa n 6 C anada 2, 488. 2 Hong K ong 294. 6 S outh K orea 707. 3 J a pa n 186. 0 S weden 15. 4%
T a iwa n 3 T a iwa n 1, 733. 6 C anada 248. 8 J a pa n 634. 4 S outh K orea 121. 9 Mala ys ia 14. 4%
Aus tralia 2 S outh K orea 1, 527. 4 S outh K orea 190. 9 T a iwa n 385. 8 T a iwa n 59. 8 Italy 13. 1%
G erma ny 2 G ermany 317. 0 Ita ly 165. 4 Hong K ong 361. 6 Ita ly 31. 9 R us s ia 13. 1%
S witzerla nd 1 Hong K ong 294. 6 R us s ia 160. 9 Ita ly 242. 6 Hong K ong 25. 1 S outh K orea 12. 7%
Hong K ong 1 Ita ly 165. 4 G ermany 158. 5 R us s ia 156. 2 R us s ia 20. 4 Hong K ong 6. 9%
F inla nd 1 R us s ia 160. 9 U nited S ta tes 152. 9 India 82. 8 G erma ny 12. 5 S witzerla nd 1. 9%
Ita ly 1 S witzerla nd 92. 0 S witzerla nd 92. 0 Ma lays ia 77. 1 Ma lays ia 11. 1 C anada -8. 5%
United K ingdom 1 F inland 65. 9 F inland 65. 9 G erma ny 68. 7 Aus tralia 4. 5 G ermany -9. 1%
India 1 Malays ia 39. 8 Malays ia 39. 8 S witzerla nd 40. 0 S witzerla nd 0. 8 U nited S ta tes -21. 9%
S weden 1 India 31. 0 India 31. 0 Aus tralia 17. 8 Norwa y -1. 1 India -50. 0%
R us s ia 1 Aus tralia 22. 1 Aus tralia 11. 0 F inla nd 5. 5 United K ingdom -2. 7 Norway -50. 6%
Ma lays ia 1 U nited K ingdom 6. 0 U nited K ingdom 6. 0 Norwa y 2. 3 F inla nd -17. 5 U nited K ingdom NA
Norwa y 1 Norway 0. 1 Norway 0. 1 United K ingdom 0. 0 India -41. 4 F inland NA
G rand Total 89 G rand Total 69,234.6 G rand Total 777.9 G rand Total 13,819.5 G rand Total 3,276.1 G rand Total 5.1%
Figure 21. Comparison by Country

Source. Capital IQ

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 18 S E HK 31, 520. 4 S E HK 10,506. 8 OM 1,982. 6 Na s daqG S 1, 796. 0 NY S E 62. 5%

Na s daqG S 14 Nas da qG S 24, 385. 7 OM 2,974. 2 S E HK 540. 0 S E HK 767. 5 AS X 42. 8%
OT C P K 11 TS E 3, 569. 2 NY S E 1,750. 4 Na s daqG S 498. 6 OM 304. 6 S E HK 40. 6%
K OS E 6 OM 2, 974. 2 Nas da qG S 1,741. 8 CM 242. 6 TS E 160. 2 GTS M 37. 1%
TS E 5 NY S E 1, 750. 4 GTS M 715. 0 NY S E 198. 5 NY S E 124. 1 Nas da qG S 30. 4%
Na s daqG M 5 K OS E 1, 437. 0 TSE 713. 8 RTS 156. 2 K OS E 103. 2 TSE 24. 6%
TS X 4 GTS M 1, 430. 0 OS E 302. 3 OS E 116. 1 GTS M 59. 8 OS E 22. 2%
T S XV 4 XT R A 317. 0 K OS E 239. 5 K OS E 106. 0 CM 31. 9 OM 15. 4%
S E HK 3 OS E 302. 3 CM 165. 4 TS E 103. 7 OS E 25. 8 K LS E 14. 4%
AME X 2 Nas da qG M 279. 7 R TS 160. 9 GTS M 101. 1 RTS 20. 4 CM 13. 1%
AS X 2 TS X 243. 6 XT R A 158. 5 BSE 82. 8 Na s daqG M 15. 6 R TS 13. 1%
XT R A 2 OT C B B 230. 9 SWX 92. 0 Na s daqG M 82. 4 XT R A 12. 5 K OS E 9. 6%
GTS M 2 CM 165. 4 HLS E 65. 9 K LS E 77. 1 K LS E 11. 1 Nas da qG M 7. 7%
SWX 1 R TS 160. 9 TSX 60. 9 TS X 46. 4 AME X 6. 2 T S XV 5. 6%
HL S E 1 SWX 92. 0 Nas da qG M 55. 9 SWX 40. 0 AS X 4. 5 S WX 1. 9%
CM 1 T S XV 76. 6 K LS E 39. 8 XT R A 34. 3 SWX 0. 8 XT R A -9. 1%
BS E 1 AME X 68. 5 AME X 34. 2 AME X 27. 9 OT C NO -1. 1 A ME X -31. 8%
NY S E 1 HLS E 65. 9 BS E 31. 0 OT C P K 16. 5 AIM -2. 7 TSX -34. 7%
OS E 1 OT C P K 65. 8 T S XV 19. 1 T S XV 12. 0 TS X -4. 3 OTCB B -38. 8%
AIM 1 K LS E 39. 8 OT C B B 12. 8 AS X 8. 9 T S XV -4. 6 OTCP K -41. 5%
OM 1 BS E 31. 0 AS X 11. 0 HL S E 5. 5 HL S E -17. 5 BSE -50. 0%
RTS 1 AS X 22. 1 AIM 6. 0 OT C B B 2. 3 OT C P K -34. 1 O T C NO -50. 6%
K LS E 1 AIM 6. 0 OT C P K 6. 0 OT C NO 2. 3 BSE -41. 4 A IM NA
OT C NO 1 OT C NO 0. 1 OT C NO 0. 1 AIM 0. 0 OT C B B -62. 4 HLS E NA
G rand Total 89 G rand Total 69,234.6 G rand Total 777.9 G rand Total 13,819.5 G rand Total 3,276.1 G rand Total 5.1%
Figure 22. Comparison by Exchange

Source. Capital IQ
Page 18
Financ ing - L as t Three Months (US $ m)

Fin. Amount (Million) Type of financ ing
Month C ompany Name C ountry Angel/S eed S eries A S eries B S eries C S eries D G rand Total
Oct-09 DailyMotion F ra nce 25. 3 25. 3
P opC ap G ames US A 22. 5 22. 5
E ngine Yard US A 19. 0 19. 0
HubS pot US A 16. 0 16. 0
J ive S oftware US A 12. 0 12. 0
S pigit US A 10. 0 10. 0
Ooyala US A 10. 0 10. 0
S c anS c out US A 8. 5 8. 5
B ox.net US A 7. 1 7. 1
R eality Mobile US A 6. 5 6. 5
W aterc ooler US A 5. 5 5. 5
Vdopia US A 4. 7 4. 7
S ometrics US A 4. 0 4. 0
Amie S treet US A 3. 9 3. 9
ViVu US A 3. 0 3. 0
F izzbac k UK 2. 6 2. 6
Technorati US A 2. 0 2. 0
Onehub US A 1. 3 1. 3
DataS ync US A 1. 2 1. 2
DailyB ooth US A 1. 0 1. 0
Hot P otato US A 1. 0 1. 0
L inkedex UK 1. 0 1. 0
S tatus Net C a na da 0. 9 0. 9
IngB oo US A 0. 8 0. 8
C hango C a na da 0. 7 0. 7
C redit K arma US A 0. 5 0. 5
L is tia US A 0. 4 0. 4
Oct-09 Total 4.5 40.9 56.5 67.4 2.0 171.3
Nov-09 R oc kYou US A 50. 0 50. 0

P laydom US A 43. 0 43. 0
S ezmi US A 25. 0 25. 0
Millennial Media US A 16. 0 16. 0
Zynga US A 15. 0 15. 0
E vernote US A 10. 0 10. 0
C ubeTree US A 8. 0 8. 0
Alice.c om US A 6. 0 6. 0
E ventbrite US A 6. 0 6. 0
P lac ecas t US A 5. 0 5. 0
AppNexus US A 5. 0 5. 0
Altruik US A 4. 7 4. 7
C redit K arma US A 2. 5 2. 5
B lekko US A 2. 5 2. 5
P layfire UK 2. 1 2. 1
S impleG eo US A 1. 5 1. 5
Adfonic UK 0. 6 0. 6
S c oopler US A 0. 5 0. 5
Nov-09 Total 2.6 52.3 29.0 67.0 52.5 203.4
Dec -09 G roupon US A 30. 0 30. 0

Zoos k US A 30. 0 30. 0
gW allet US A 12. 5 12. 5
Movik Networks US A 8. 5 8. 5
G owalla US A 8. 4 8. 4
G ogii US A 8. 2 8. 2
S eekingAlpha Is ra el 7. 0 7. 0
P ageonc e US A 6. 5 6. 5
G enius .com US A 6. 5 6. 5
S maato US A 4. 5 4. 5
Tonc hidot J apan 4. 0 4. 0
J anR ain US A 3. 3 3. 3
S toc kTwits US A 3. 0 3. 0
Dec -09 Total 26.3 69.6 36.5 132.4
G rand Total 7.1 119.5 155.1 134.4 91.0 507.0
Figure 23. Financing, Last Three Months

Page 19
C ompany Des c riptions - C urrent Month C apital Market Ac tivity

C ompany HQ Webs ite Des cription
C loud E ngines US A www. cloudengines .com C loud E ngines , Inc. provides P ogoplug devices that connect us er’s external hard drive to the Internet to s ha re and acces s media and files
from anywhere. T he company was incorporated in 2006 and is ba s ed in S an F rancis co, C a lifornia .
F riends ter US A www. friends ter. com F riends ter, Inc. opera tes an online s ocial network. It enables people to s tay in touch with friends , family, s chool, s ocial groups , activities , and
interes ts , as well as to dis cover new people and things tha t are important to them. Its developer platforms provide AP Is to acces s F riends ter
data and integration points within the F riends ter W eb s ite to create applications for us ers . T he company offers O penS ocia l platform that
a llows us ers to write applications a nd run them on the s ites that s upport OpenS ocial; and P latform V 1, which provides AP Is to a cces s
F riends ter data. It offers its s ervices through www. friends ter. com or m.friends ter. com. T he compa ny was founded in 2002 and is bas ed in
S an F rancis co, C alifornia.
G enius .com US A www. genius . com G enius . com Incorporated provides bus ines s -to-bus ines s email ma rk eting s olutions for s a les and marketing profes s ionals . Its products
include S ales G enius that enables us ers to s end tracka ble emails us ing pre-built templates /Micros oft Outlook; G enius T ra cker that delivers
a n ins tant alert that the pros pect is online and demons trating interes t by vis iting the W ebs ite; MarketingG enius that enables marketers and
s ales ops managers to crea te, tes t, s chedule, and s end ema il campaigns ; and G enius P ro that helps s ales and marketing teams us e a range
of capabilities to connect with cus tomers , including pers onaliz ed emails s ent on behalf of s ales repres entatives , pers onaliz ed W eb s ite
promotions , live chat, and integration with s ales force. com. T he company als o provides cus tomer s upport, campaign s ervices , training, a nd
implementation a nd integra tion s ervices . G enius . com Incorporated was formerly known a s MarketingG enius . com. T he company was
founded in 2004 and is bas ed in S a n Mateo, C alifornia.
G ogii US A www. beta. gogii. com G OG II, Inc. provides free mobile texting application. T he compa ny was founded in 2008 and is bas ed in Marina del R ey, C alifornia.
G owalla US A www. gowalla . com G owalla , a ls o known as Alamofire, creates ga mes and game-like experiences for the s ocial web.
G roupon US A www. groupon.com G roupon, Inc. operates a W ebs ite that offers group dis counts for products a nd s ervices in various areas . It offers daily deals on acupuncture,
mea ls , opera tick ets , tours , teeth cleanings , res taurants , thea tre, s pas , clas s es , s porting events , ba rs , mus eums , concerts , and gyms . T he
company was founded in 2008 and is bas ed in C hicago, Illinois . It has operations in C hicago, New Y ork, Mia mi, a nd Atlanta. G roupon, Inc.
operates as a s ubs idiary of T he P oint, LLC .
gWallet US A www. gwallet. com gW a llet provides bra nds , publis hers and s ocial media pla tforms with a virtual currency technology for s ocial network s . T he gW allet
monetization platform conta ins three components including Alternative O nline P ayment, V irtual C urrency a nd Aggregation of V irtua l
P roducts . T he platform is a comprehens ive s ys tem tha t has been optimized for F a cebook, O penS ocial platforms (MyS pa ce, Hi5, T a gged,
etc), virtual worlds or webs ites utiliz ing virtual offer-bas ed currency.
J anR ain US A www. janrain. com J anR ain, Inc. provides Internet identity s olutions and s ervices for bus ines s es and cons umers . It offers OpenID, an open s ource s oftware as a
s ervice technology that allows cons umers to us e a s ingle login acros s multiple W ebs ites and regis ter on new s ites with a portable online
identity. Its products include R P X , a n enterpris e-clas s hos ted s olution that helps in accepting and verifying us ers ' third party a ccounts , s uch
a s G oogle, Y ahoo, F acebook, and LiveID; O P X that enables to is s ue a nd manage O penIDs , and build communities with cus tomers in their
own brand; and myOpenID that provides O penID for individuals in the market. T he company has s trategic partners hips with Micros oft,
Y ahoo! , AOL , MyS pace, P laxo, and G oogle. J anR ain, Inc. was founded in 2005 and is bas ed in P ortland, Oregon.
L ala US A www. lala. com L ala is a hub for online mus ic dis covery and purchas ing. Us ers ca n lis ten for free mus ic, adding tracks to their playlis t as they s urf. members
who downloa d a plugin can turn La la into an online mus ic locker that s yncs their des ktop mus ic libra ries to their La la account. Long uploads
a ren’t neces s ary. If Lala already has the s ong in their library, they s imply unlock the file to you online.
Movik Networks US A www. movik. net Movik Network s is headquartered near B os ton, MA and has a n R & D group in B anga lore, India . T he company is focus ed on delivering
purpos e-built s olutions that bring content and application awa renes s to the edge of the mobile network.
P ageonce US A www. pageonce. com P ageOnce ha s developed a n internet “as s is tant” that helps both cons umers manage their online lives and marketers connect with thos e
s ame cons umers . T he company unifies information from the divers e internet a ccounts tha t mos t regular internet us ers have, and it dis plays
tha t information in a pers ona lized homepage. It s upports numerous web s ervices s uch a s Digg, delicious , hi5, Helio, S tarbucks , OpenT able,
las t. fm, and R eunion. O ther more generic s ources of information include bank accounts and cell phone s ubs criptions .
R ocket F uel US A www. rocketfuelinc. com R ocket F uel Inc. provides an a d s erving technology platform for agencies and advertis ers to manage, run, and evaluate online campaigns .
Its automa ted technology identifies the performing s egments for each individual ca mpaign and directs impres s ions , as well as provides
a udience targeting technologies that combine s ocia l, behavioral, contextual, geographical, s earch, and other data s ources to unders tand
cons umer interes t and intent. T he company provides various s olutions , s uch a s Audience B oos ter tha t identifies audiences in media,
including s ocia l media and us er-generated content; S earch B oos ter, which allows to reach people acros s the W eb who s earched for you,
went to s ite, and expres s ed interes t in a product or s ervice; and F as hion B oos ter that identifies fas hion cons umers in media. R ocket F uel
Inc. wa s founded in 2008 a nd is bas ed in R edwood C ity, C alifornia.
S eekingAlpha Is rael www. s eekingalpha .com S eeking Alpha, Ltd. provides s tock market opinion and a nalys is information from blogs , money ma nagers , and inves tment news letters . T he
company offers daily s umma ry of market and s tock related s tories , conference call tra ns cripts , new IP O filings , and hous ing ma rket roundup.
It als o provides articles from contributors for s tock res earch. T he company s erves money managers , res earch a nalys ts , inves tment bankers ,
a nd individual inves tors . S eeking Alpha, Ltd. was founded in 2004 and is ba s ed in New Y ork, New Y ork.
S maato US A www. s ma ato. com S maato Inc. , a mobile advertis ing technology company, provides an open mobile advertis ing platform for publis hers , application developers ,
a dvertis ement networks , and mobile operators . It offers S maato O pen Mobile Advertis ing, a n advertis ement exchange platform that brings
international campaigns from various advertis ement networks to the publis hers and developers inventory, as well as enables the delivery of
targeted advertis ing to mobile phones on mobile W ebs ites /widgets within applications a nd in mobile games . T he company’s platform a ls o
a llows mobile carriers to a dvertis ement-enable their s ervices and provides cus tomer relations hips . It has a s trategic partners hip with
MocoS pace. S maato Inc. was founded in 2005 and is bas ed in R edwood S hores , C alifornia with a loca tion in Hamburg, G erma ny.
S tockTwits US A www. s tocktwits . com S tockT wits L LC operates as an online community that provides information about inves tments and s tocks . It provides us ers to give an
opinion about a s pecific s tock s ymbol through a tweet. T he company was incorporated in 2008 and is bas ed in Oak land, C alifornia.
Tonchidot J apan www. tonchidot. com T onchiDot C orporation develops and provides mobile phone bas ed applications and s ervices . Its des igns and develops S ekai C amera, a
camera technology tha t us es digital device as a viewfinder to acces s Internet s ervices . T he company is bas ed in T okyo, J apan.
Zoos k US A www. zoos k . com Zoos k, Inc. operates as an online s ocial dating network. T he company was founded in 2007 and is bas ed in S an F rancis co, C alifornia.
Figure 24. Company Descriptions

Source. Company reports, Capital IQ, Crunchbase
Page 20
RELEVANT DISCLOSURES APPLICABLE TO: NONE
LIST OF DISCLOSURE TERMS:
1. None applicable.
ANALYST CERTIFICATION
Each analyst of Research Capital Corporation whose name appears in this report hereby certifies that (i) the
recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii)
no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or
recommendations expressed in this research report.
I n f o r ma t i o n a b o u t Re s e a r ch C a p i t a l C o r p o r a t i o n ’ s Ra t i n g S y s t e m, t h e d i s t r i b u t i o n o f o u r r e s e a r ch t o cl i e n t s a n d t h e p e r ce n t a g e o f r e c o m me n d a t i o n s wh i c h a r e i n e a c h
o f o u r r a t i n g c a t e g o r i e s i s a v a i l a b l e o n o u r we b si t e a t ww w. r e s e a r ch c a p i t a l . c o m.
T h e i n f o r ma t i o n c o n t a i n e d i n t h i s r e p o r t h a s b e e n d r a wn f r o m s o u r c e s b e l i e ve d t o b e r e l i a b l e b u t i t s a c cu r a c y o r co mp l e t e n e ss i s n o t g u a r a n t e e d , n o r i n p r o vi d i n g i t
d o e s R e s e a r c h Ca p i t a l C o r p o r a t i o n a s s u me a n y r e sp o n si b i l i t y o r l i a b i l i t y . R e s e a r ch C a p i t a l C o r p o r a t i o n , i t s d i r e ct o r s , o f f i c e r s a n d o t h e r e mp l o y e e s ma y , f r o m t i me t o
t i me , h a v e p o si t i o n s i n t h e s e cu r i t i e s me n t i o n e d h e r e i n . Co n t e n t s o f t h i s r e p o r t c a n n o t b e r e p r o d u c e d i n wh o l e o r i n p a r t wi t h o u t t h e e xp r e ss e d p e r mi s si o n o f R e se a r ch
C a p i t a l C o r p o r a t i o n . ( U . S . I n s t i t u t i o n a l Cl i e n t s — Re s e a r ch C a p i t a l U . S. A . I n c. ( a wh o l l y o wn e d s u b si d i a r y o f R e s e a r c h C a p i t a l Co r p o r a t i o n ) a cc e p t s r e s p o n si b i l i t y f o r
t h e c o n t e n t s o f t h i s r e p o r t s u b je c t t o t h e t e r ms & l i mi t a t i o n s s e t o u t a b o v e . F i r ms o r i n s t i t u t i o n s r e ce i vi n g t h i s r e p o r t s h o u l d e f f e ct t r a n s a ct i o n s i n s e c u r i t i e s d i sc u s se d
i n t h e r e p o r t t h r o u g h R e s e a r ch C a p i t a l U . S . A . I n c. , a B r o k e r - D e a l e r R e g i s t e r e d wi t h t h e U n i t e d S t a t e s S e cu r i t i e s a n d E xc h a n g e C o m mi s si o n ) .
Tor on to 4 16. 8 60. 76 00 M ontr eal 51 4. 39 9. 150 0 V anco u ver 60 4. 66 2. 180 0 C al gar y 40 3. 26 5. 740 0 R egi na 306. 566. 7550
www.researchcapital.com

09-12-15 Web 2.0 Weekly

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

09-12-15 Web 2.0 Weekly

Uploaded by

Copyright:

Available Formats

SOFTWARE & SERVICES 15 DECEMBER 2009

DAVID SHORE, CFA, MBA 416.860.6784

“GEO-LOCATIO N-BASED” BECOMING A BIG MONEY PHRASE

E s timated Value per Unique Vis itor

THE WEB 2.0 UNIVERSE

Figure 1. Web 2.0 Universe Summary

Financing Activity Last Twelve Months

300.0 11.3 12.0

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

Figure 2. Financings, Last Twelve Months

Financing & M/A Summary - Last Three Months

Figure 3. Capital Market Activity, Last Three Months

Capital Market Activity by Sector - Last Three Months

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

Web 2.0 Index Price Performance

Figure 5. Web 2.0 Price Performance

1 Week P rice P erformance

Figure 6. 1-Week Price Performance

Figure 7a. Key Developments

Figure 7b. Key Developments – continued

Figure 8. Market Cap Rankin

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

N E O WIZ G ames C orporation

G ungHo O nline E ntertainment, Inc.

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

P N I Digital Media Inc.

C hines e G amer Interna tional

N orthgate T echnologies L imited

C hangy ou.com L imited

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.

Modern T imes G roup Mtg AB

NeuLion Inc orporated

Lingo Media C orporation

NeX plore C orporation

S NAP Intera ctive, Inc.

United O nline Inc .

S pec trumDNA, Inc.

IAC /InterAc tiveC orp.

V alueC lic k Inc .

NetDra gon WebS oft, Inc .

F rogs ter Intera ctiv e P ictures AG

T encent Holdings Ltd.

P erfect World C o., Ltd.

H anbitS oft, Inc .

S ocial Media V entures Inc .

B igs tring C orp.

K ings oft C o. Ltd.

Acceleriz e New Media , Inc .

Ac toz S oft C o. , Ltd.

Wiz z ard S oftware C orporation

Figure 9. TEV/Revenue Ranking

Average TEV/LTM Revenue - By Country

8.0 8.3 7.5 7.5 6.8

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

15. 0 13. 5 13. 7

NE O WIZ G ames C orporation

G ungH o O nline E ntertainment, Inc .

G amania Digital E ntertainment C o. , Ltd.

P NI Digital Media Inc .

C hines e G amer International

U nis erve C ommunications C orp.