09-08-25 Web 2.0 Weekly

SOFTWARE & SERVICES 25 AUGUST 2009
WEB 2.O WEEKLY DAVID SHORE, CFA, MBA 416.860.6784

david.shore@researchcapital.com
CONTENT DISTRIBUTIO N ACROSS PLATFO RMS BECOMING KEY

MY S P AC E B U Y S L E AD IN G F AC E BO O K DE V EL O P E R; F AC E B OO K CR E AT E S T WIT T E R U P DAT E C A PA BIL I T Y
MySpace finally confirmed last week the much-rumoured acquisition of leading Facebook developer iLike. Terms of
the deal are believed to be $13.5 million upfront and $6.5 million in retention payouts over time. W ith this acquisition,
th
MySpace now owns the 14 largest (according to www.appdata.com) Facebook developer – based on the number of
monthly active users. Facebook itself announced that Facebook Page owners would be able to automatically update
their Twitter status with their Facebook updates. Twitter users have long been able to update their Facebook status
with their Tweets. Clearly, the large social network players see the value in allowing their users to cross-pollinate
content across the different platforms.
A much better August than 2008: Total capital raised in August (so far) is $148.1 million on 17 transactions. The
average for August, month-to-date so far, is $8.7 million. This is well ahead of the mere $82.3 million (eight deals,
$10.3 million average) raised in August 2008. However, this is down sequentially from June and July, with one week
to go in the month. Total capital raised in July on 34 transactions was $190.2 million, averaging $5.6 million, and
June was $204.1 million (averaging $5.0 million).
Financing Activity Last Twelve Months
400.0 18.0
16.2
16.0
350.0
14.6
14.0
300.0
12.0
250.0
10.3
9.7
10.0
(US$m)
(US$m)
8.7
200.0
8.0
7.0 7.0 7.1
6.5 6.6
150.0 6.2
5.6 6.0
5.0
100.0
4.0
50.0
2.0
0.0 0.0
Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09
*May-09 includes $200m FB investment Total Average
A strong price performance week: Most companies in our universe had strong stock price performances over the
past week (for stocks with prices greater than $1) (Figure 6), with 37 companies showing positive returns on the
week – reversing the prior weeks decline. Frogster (XTRA:FRG) led the group with a 19.6% return, while Ynk Korea
(KOSE:A023770) had the worst return, dropping 14.6% 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
~$65 billion (Figure 1). The median market cap for the group is ~$65 million, with average trailing revenue of ~$160
million (median $57 million). The companies are also generally profitable, with a median EBITDA margin of 13.1%. On a
valuation basis, the overall average is 5.0x trailing revenue (median 1.9x) and 11.9x trailing EBITDA (median 9.4x).
Eighteen of the companies have more than 500 employees.
C omparable C ompany Analys is > Web 2.0
Trading C urrent US D Market US D L TM Total US D L TM Total E B ITDA TE V/L TM TE V/L TM
C ompany Name L TM as of Ticker E xc hange C urrency HQ P rice C ap ($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. 3/31/2009 A052790 K OS E KR W S outh K orea 19,150 133. 1 93. 1 20. 2 21. 7% 1. 1x 5. 1x NA
AQ Interactive, Inc. 3/31/2009 3838 TS E JPY J a pan 50,400 29. 0 65. 4 4.1 6.3% - - 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 1.0 0. 1 (1.5) NM 32.5x - 4
B eta wave C orporation 6/30/2009 B W AV OT C B B US D United S ta tes 0. 08 2.3 9. 4 (12. 6) NM - - 45
B eyond C ommerce, Inc. 6/30/2009 B Y OC OT C B B US D United S ta tes 0. 18 8.3 11. 7 (12. 8) NM 1. 2x - 43
B right T hings plc 9/30/2008 AIM: B G T AIM GBP United K ingdom 0. 01 4.0 0. 3 (1.9) NM 14.6x - 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. 63 278. 7 361.6 25. 1 6.9% 0. 8x 10. 9x 2, 227
C hangyou. com L imited 6/30/2009 C Y OU Na s daqG S US D C hina 38. 08 2,094. 4 241.2 147.2 61. 0% 7. 5x 12. 4x 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 394 1,009. 5 56. 3 31. 6 56. 0% 16.7x 29. 9x NA
C LIC K E R Inc. 5/31/2009 C LK Z OT C B B US D United S ta tes 0. 01 0.4 2. 5 (1.2) -45. 8% 0. 2x - 22
C ornerW orld C orpora tion 4/30/2009 CWR L OT C B B US D United S ta tes 0. 06 5.3 3. 9 NM NM 4. 0x - NA
C yberplex Inc. 6/30/2009 T S X :C X TS X C AD C anada 2 97. 1 91. 0 9.8 10. 8% 0. 8x 7. 8x NA
DADA S pA 6/30/2009 C M: DA CM E UR Italy 6. 38 148. 1 236.5 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. 53 34. 8 76. 5 11. 0 14. 4% 0. 6x 4. 5x 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 4.6 1. 0 (1.4) NM 6. 7x - 7
DigitalT own, Inc. 5/31/2009 DG T W OT C B B US D United S ta tes 1. 40 38. 3 NM (2.5) NM - - 3
Dolphin Digital Media , Inc. 3/31/2009 DP DM OT C B B US D United S ta tes 0. 39 20. 9 0. 8 (3.7) NM 28.3x - NA
E olith C o. Ltd. 12/31/2008 A041060 K OS E KR W S outh K orea 860 50. 2 14. 8 (3.5) -23. 6% 3. 5x - NA
E xtens ions , Inc. 3/31/2009 E XT I OT C P K US D United S ta tes 0. 08 3.6 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. 32 64. 5 5. 3 (5.1) -95. 2% 10.6x - NA
F rogs ter Interactive P ictures AG 12/31/2008 FRG XT R A E UR G ermany 16. 75 60. 6 3. 3 (6.3) NM 17.9x - NA
G ama nia Digita l E ntertainment C o., Ltd. 6/30/2009 6180 GTS M TWD T aiwa n 50. 30 233. 0 139.1 24. 6 17. 7% 1. 5x 8. 5x NA
G ameOn C o Ltd. 6/30/2009 3812 TS E JPY J a pan 104,700 107. 0 77. 5 19. 0 24. 5% 0. 5x 1. 9x NA
G eoS entric O yj 3/31/2009 G E O 1V HL S E E UR F inland 0. 05 64. 3 6. 1 (15. 7) NM 9. 9x - 108
G iant Interactive G roup, Inc. 6/30/2009 GA NY S E US D C hina 8 1,754. 9 198.5 124.1 62. 5% - - 1, 570
G iga Media Ltd. 3/31/2009 G IG M Na s daqG S US D T aiwa n 4. 73 257. 9 183.6 NM NM 1. 0x - 751
G ravity C o., Ltd 3/31/2009 GR VY Na s daqG M US D S outh K orea 2. 39 66. 4 46. 1 12. 7 27. 5% - - 469
G ree, Inc. 6/30/2009 T S E : 3632 TS E JPY J a pan 8,540 2,021. 1 147.5 88. 6 60. 1% 12.9x 21. 5x NA
G ungHo O nline E ntertainment, Inc. 3/31/2009 3765 OS E JPY J a pan 243,000 294. 3 109.0 19. 6 18. 0% 2. 4x 13. 6x NA
HanbitS oft, Inc. 3/31/2009 A047080 K OS E KR W S outh K orea 3,795 67. 0 55. 6 (14. 9) -26. 8% 0. 9x - NA
IAC /InterActiveC orp. 6/30/2009 IAC I Na s daqG S US D United S ta tes 19. 04 2,520. 9 1, 392. 3 52. 7 3.8% 0. 6x 14. 8x 3, 200
IAS E nergy, Inc. 1/31/2009 IAS A. E OT C B B US D C anada 0. 15 10. 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 P ty Ltd. 12/31/2008 AS X :J MB AS X AUD Aus tralia 0. 38 15. 4 15. 0 5.6 37. 2% 0. 7x 1. 8x 72
K AB Dis tribution Inc. 6/30/2009 T S X :K AB TS X C AD C anada 1 83. 4 68. 8 4.0 5.8% - - NA
K ings oft C o. Ltd. 3/31/2009 3888 S E HK HK D C hina 9 1,214. 6 129.1 52. 0 40. 3% 9. 4x 23. 4x 2, 271
Lingo Media C orporation 3/31/2009 T S X V :LM T S XV C AD C anada 1. 12 13. 0 1. 0 (1.6) NM 12.4x - 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. 28 21. 9 56. 8 (4.4) -7.8% - - 90
Magnitude Information S ys tems Inc. 3/31/2009 MAG Y OT C B B US D United S ta tes 0. 01 3.0 0. 1 (3.1) NM - - 14
Mixi, Inc. 6/30/2009 2121 TS E JPY J a pan 614000. 00 1,000. 3 129.3 43. 7 33. 8% 6. 9x 20. 3x NA
Modern T imes G roup Mtg AB 6/30/2009 MT G B OM SEK S weden 310. 00 2,901. 8 1, 950. 0 299.6 15. 4% 1. 8x 11. 6x 2, 969
MO K O .mobi Limited 12/31/2008 MK B AS X AUD Aus tralia 0. 07 5.2 1. 2 (2.5) NM 3. 3x - NA
Myriad G roup AG 12/31/2008 MY R N SWX C HF S witzerland 4. 50 90. 4 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 29650. 00 503. 0 199.5 53. 6 26. 8% 2. 5x 9. 2x NA
NetDragon W ebS oft, Inc. 3/31/2009 777 S E HK HK D C hina 7 452. 8 87. 0 34. 4 39. 5% 3. 8x 9. 5x 2, 426
Neteas e. com Inc. 6/30/2009 NT E S Na s daqG S US D C hina 42. 28 5,472. 2 472.2 297.3 63. 0% - - 3, 109
NeuLion Incorporated 6/30/2009 T S X :NLN TS X C AD C anada 1. 10 116. 9 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 33. 5 0. 7 (6.2) NM - - NA
Ngi G roup Inc. 6/30/2009 2497 TS E JPY J a pan 32400. 00 42. 4 87. 9 6.5 7.4% - - NA
Northgate T echnologies L imited 6/30/2009 590057 BSE INR India 39. 40 28. 3 81. 9 (40. 9) -50. 0% 0. 3x - NA
O pen T ext C orp. 6/30/2009 OT E X Na s daqG S US D C anada 35. 95 2,018. 6 785.7 205.1 26. 1% 2. 6x 10. 0x NA
O penwave S ys tems Inc. 6/30/2009 OP W V Na s daqG S US D United S ta tes 2. 86 238. 2 191.7 5.3 2.8% 0. 7x 24. 4x NA
P erfect W orld C o. , Ltd. 6/30/2009 PWRD Na s daqG S US D C hina 39. 01 1,918. 6 255.6 142.1 55. 6% 0. 5x 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. 67 53. 2 21. 3 2.3 11. 0% 2. 4x 21. 9x NA
Q uepa s a C orp. 6/30/2009 QP S A OT C B B US D United S ta tes 2 19. 1 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. 7 150.9 19. 7 13. 1% 0. 0x 0. 2x NA
S handa Interactive E nterta inment Ltd. 3/31/2009 S NDA Na s daqG S US D C hina 48. 75 3,255. 0 570.3 261.0 45. 8% - - 3, 124
S hutterfly, Inc. 6/30/2009 S FLY Na s daqG S US D United S ta tes 15. 15 385. 7 218.6 27. 3 12. 5% 1. 5x 11. 8x 514
S K C ommunications C o., Ltd. 12/31/2008 A066270 K OS E KR W S outh K orea 9310. 00 314. 4 185.5 12. 1 6.5% 1. 7x 26. 1x NA
S NAP Interactive, Inc. 6/30/2009 S TVI OT C B B US D United S ta tes 0 4.3 3. 5 0.9 27. 0% 0. 8x 2. 9x 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. 60 26. 6 0. 0 (5.6) NM - - NA
S ohu. com Inc. 6/30/2009 S O HU Na s daqG S US D C hina 64. 52 2,473. 3 485.1 209.6 43. 2% 4. 1x 9. 4x 3, 197
S park Networks , Inc. 6/30/2009 L OV AME X US D United S ta tes 2 44. 2 50. 5 10. 8 21. 3% 0. 8x 3. 9x 183
S pectrumDNA, Inc. 6/30/2009 S P XA OT C B B US D United S ta tes 0 11. 0 0. 1 (2.5) NM - - 7
T encent Holdings Ltd. 6/30/2009 700 S E HK HK D C hina 120 28, 087.7 1, 391. 1 685.6 49. 3% 22.1x 44. 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. 02 0.5 112.0 (13. 5) -12. 0% 0. 2x - 347
T he9 Limited 12/31/2008 NC T Y Na s daqG S US D C hina 8. 44 215. 3 250.5 85. 4 34. 1% - - 1, 626
T heS treet. com, Inc. 3/31/2009 TS CM Na s daqG M US D United S ta tes 2. 31 70. 7 67. 0 1.9 2.9% 0. 1x 3. 2x 310
T ota l S port O nline AS 3/31/2006 T OS O O T C NO NO K Norway 0. 03 0.1 2. 2 (1.1) -50. 6% 4. 6x - 16
T ree.C om, Inc. 6/30/2009 TR E E Na s daqG M US D United S ta tes 8. 61 93. 0 216.6 (0.7) -0.3% 0. 5x - 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. 3 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. 40 620. 4 949.8 203.2 21. 4% 0. 9x 4. 4x 1, 469
UOMO Media, Inc 1/31/2009 UO MO OT C B B US D C anada 0 12. 9 0. 6 (0.5) -78. 2% 20.8x - NA
V alueC lick Inc. 6/30/2009 V C LK Na s daqG S US D United S ta tes 11 937. 8 563.6 99. 0 17. 6% 1. 4x 8. 1x 1, 189
V OIS , Inc. 3/31/2009 V O IS OT C B B US D United S ta tes 0 5.0 0. 0 (1.1) NM - - 4
W ebzen Inc. 6/30/2009 W ZE N Na s daqG M US D S outh K orea 2. 82 33. 4 22. 3 2.2 9.9% - - NA
W izzard S oftwa re C orporation 6/30/2009 W ZE AME X US D United S ta tes 0. 45 22. 7 5. 3 (4.5) -84. 9% 4. 5x - 110
W orlds . com Inc. 3/31/2009 W DDD OT C B B US D United S ta tes 0. 11 5.7 0. 0 (0.8) 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 27. 49 207. 5 57. 5 16. 6 28. 8% 2. 7x 9. 4x 174
Y eda ngO nline C orp. 12/31/2007 A052770 K OS E KR W S outh K orea 8,550 103. 3 55. 2 11. 9 21. 6% 2. 0x 9. 4x NA
Y nk K orea Inc. 3/31/2009 A023770 K OS E KR W S outh K orea 4,075 17. 5 10. 6 (0.8) -7.6% - - NA
High 28, 087.7 1,950. 0 685. 6 63. 0% 32.5x 44. 9x 6, 194
Low 0.0 0. 0 -40.9 -98. 9% 0. 0x 0. 2x 1
Average 720.6 160.4 38.1 5.0% 5.0x 11.9x 860
Median 65. 5 56.8 2. 3 13. 1% 1. 9x 9. 4x 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 )
Total capital raised in August (so far) is $148.1 million: Online gaming company Turbine, Inc. raised $50 million in
August – the largest transaction in August. Mint, a vertical community site (offering web-based solutions for financial
management), was a distant second raising $14.1 million. Total capital raised in July on 34 transactions was $190.2
million, averaging $5.6 million, and June was $204.1 million (averaging $5.0 million). The average for August, month-to-
date so far, is $8.7 million.
Financing Activity Last Twelve Months
400.0 18.0
16.2
16.0
350.0
14.6
14.0
300.0
12.0
250.0
10.3
9.7
10.0
(US$m)
(US$m)
8.7
200.0
8.0
7.0 7.0 7.1
6.5 6.6
150.0 6.2
5.6 6.0
5.0
100.0
4.0
50.0
2.0
0.0 0.0
Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09
*May-09 includes $200m FB investment Total Average
Figure 2. Financings, Last Twelve Months

Source. Company reports
(US$m)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
People Media
Super Rewards
Turbine
Friends Reunited

AdLink Internet Media
Pandora Media
iLike
xoopit
MediaMath
Edo Interactive
Sugar Inc.
Kontera Ltd.
Ning
Tumri
Mint
Boku
RichRelevance
Figure 3. Capital Market Activity, Last Three Months

QuickPlay Media
Grab Networks
Wimba
Traffiq
AdChina
Causes
Goojet SAS
Bill.com
Outspark
ConnectEdu
Acquia, Inc
beeTV
AdMeld Inc.
SBNation
InnoCentive
blueKiwi Software SA
Nokeena
Metaversum
iMemories
Zoosk
Boxee
Bubble Motion
Invodo
Sense Networks
Polyvore
Gather
Taomee
Jambool
MojoPages
Animoto
Quikr India Pvt. Ltd.
GameGround
StyleCaster
Nexage
OPEN Sports network
RingRevenue
TweetDeck
OurStage
Crowdcast
Z2Live
KODA
YuMe
Scoreloop
eRepublik
Busca
ClickFuel
ProtonMedia
Newser LLC
Akademos
Inigral
AdEx Media
Roblox
million. For additional details on financings, see Figures 23 and 24 (at end of note).
Financing & M/A Summary - Last Three Months
GROU.PS
Yapta
OneTXT
iLoop Mobile
my6sense
I Love Rewards
Comunitae
Lat49
Aloqa
Cliqset
ChessCube
Tributes.com
CoTweet
Cognitive Match Limited
TodaCell
Glubble
Cellufun
Picaboo
LiquidPlanner
AdWhirl
Clikthrough
People Capital
BookFresh
MashLogic
iSyndica
Masher Media
Jaxtr
Gigpark
Jul-09
Jun-09
Aug-09
Page 4
for August to $148.1 million. In addition, Friends Reunited was acquired for $42 million and MySpace bought iLike for $20
raising $12.5 million. Of the total 17 transactions thus far, 12 were below $10 million each, bringing the total capital raised
transaction so far in August. Mint was a distant second securing a $14.1 million round. Closely behind was RichRelevance
Turbine, Inc. $50 million raise largest in August: On the capital raise front, Turbine, Inc. raised $50 million, the largest
Page 5
Ad Netw ork remains the most active sector in dollars raised: Following recent trends, Ad Networks as a sector saw
the most activity in dollars raised ($126.4 million) and number of transactions (13), followed by the Social Network sector
also with 13 transactions, raising $105.2 million (Figure 4).
Capital Market Activity by Sector - Last Three Months
140.0
120.0
100.0
80.0
(US$m)
126.4
60.0
105.2
40.0 80.0
69.9
64.2 64.0
58.0
20.0
32.6
24.3 24.0 22.3 19.3 19.1
13.0 12.5 12.0 10.7 7.3 5.0 5.0 4.1
0.0 3.2 3.0 1.0 1.0 0.5 0.5 0.0
Comment/Reputation
Mobile Payment
Communities
Online Dating
Gaming
Online Calendar
Mobile
Enterprise
Media
Microblog
Online Lending
Collaboration
Online Learning
Publishing
Music
Infrastructure
Blog
Search
Classified
Mobile Ad
SMS/Voice
Social Networks
Virtual Goods
Virtual World
Video
Crowdsourced
Ad Network
Analytics
Vertical
Content
# companies
13 13 1 5 7 10 3 5 5 2 7 3 4 1 1 2 2 1 1 1 1 1 2 1 1 1 1 0
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 continue 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

140
120
100
80
60
40
20
0
8/25/2008
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 strong price performance week: Most companies in our universe had strong stock price performances over the past
week (for stocks with prices greater than $1) (Figure 6), with 37 companies showing positive returns on the week –
reversing the prior weeks decline. Frogster (XTRA:FRG) led the group with a 19.6% return, while Ynk Korea
(KOSE:A023770) had the worst return, dropping 14.6% in the week.
1 Week P rice P erformance

Frogs ter Interactiv e Pictures A G 19.6%
G ravity Co., Ltd 18.9%
Northgate Technologies Limited 14.9%
Lingo Media Corporation 12.0%
NetDragon WebS of t, Inc. 12.0%
Fluid Mus ic Canada , Inc. 10.0%
Perfect World Co., Ltd. 7.9%
G ree, Inc. 7.7%
DigitalTow n, Inc. 7.7%
S ohu.com Inc. 7.7%
Modern Times G roup Mtg A B 7.6%
V alueClick Inc. 7.5%
S handa Interactive Entertainment Ltd. 7.4%
G igaMedia Ltd. 7.3%
Quepas a Corp. 7.1%
LookS mart, Ltd. 6.7%
My riad Group A G 5.6%
Neteas e.com Inc. 5.1%
Eolith Co. Ltd. 4.9%
DA DA S pA 4.8%
PNI Digital Media Inc. 4.4%
Tencent Holdings Ltd. 4.3%
Webz en Inc. 3.7%
CDC Corp. 3.5%
IA C/InterA ctiveCorp. 3.5%
K ings of t Co. Ltd. 2.7%
S hutterf ly , Inc. 2.7%
TheS treet.com, Inc. 2.7%
Openw ave S y s tems Inc. 2.1%
Changy ou.com Limited 2.0%
The9 Limited 1.9%
Mix i, Inc. 1.7%
G ameOn Co Ltd. 1.7%
A Q Interactiv e, Inc. 1.6%
S park Netw orks , Inc. 1.3%
United Online Inc. 1.2%
Giant Interactive G roup, Inc. 0.9%
NeuLion Incorporated 0.0%
XING A G 0.0%
Ngi G roup Inc. -1.2%
Cy berplex Inc. -3.0%
Y edangOnline Corp. -3.6%
Tree.Com, Inc. -3.7%
Chines e Gamer International -4.4%
S K Communications Co., Ltd. -5.5%
Open Tex t Corp. -5.8%
NEOWIZ Games Corporation -6.2%
HanbitS of t, Inc. -8.0%
A ctoz S of t Co., Ltd. -10.1%
Gamania Digital Entertainment Co., -11.3%
Y nk K orea Inc. -14.6%
-20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
Figure 6. 1-Week Price Performance

Source. Capital IQ
Page 8
INDUSTRY NEWS (PARTNERSHIPS, FINANCIAL RESULTS, NEW PRODUCTS)

K ey Developments
C ompany Headline Notes
United Online Inc. (Nas daqGS : UNTD) United O nline Inc. Announces E xecutive P romotions O n Augus t 14, 2009, F rederic A. R anda ll, J r. , who ha s s erved a s the E xecutive V ice P res ident, G enera l C ouns el and S ecreta ry of United
O nline Inc. , wa s elected to the pos ition of E xecutive V ice P res ident and C hief S trategy Officer, a newly-created executive officer pos ition of
the company, effective Augus t 15, 2009. In his new role, Mr. R a nda ll will focus on matters related to s trategic planning and a cquis itions .
C harles B . Ammann, who ha s s erved as the compa ny's S enior V ice P res ident, Deputy G enera l C ouns el a nd As s is tant S ecretary, wa s
promoted to the pos ition of E xecutive V ice P res ident, G enera l C ouns el a nd S ecreta ry of the compa ny, effective Augus t 15, 2009.
S NM G lobal Holdings (OTC PK : S NMN) S NM G lobal S eeking Acquis itions It is learnt that, S NM G loba l Holdings continues its ques t to s ecure funding to pa y down debt a nd continue with the development of
infras tructure a nd s eeking a cquis itions . T he compa ny is a ls o exploring expa ns ion into other indus tries tha t will complement as well as
divers ify their Media –E ntertainment/S ports content development, delivery a nd dis tribution model.
DigitalP os t Interac tive, Inc . Digita lP os t Interactive Inc. R eports E a rnings R es ults for Digita lP os t Interactive Inc. reported earnings res ults for the s econd quarter a nd s ix months ended J une 30, 2009. T ota l revenue for s econd-
(OTC B B : DG L P ) the S econd Qua rter a nd S ix Months E nded J une 30, qua rter 2009 ros e more tha n 161% to $376, 400, from $144,200 in s econd-quarter 2008. T he increa s e was driven by more tha n 211% growth
2009 in s ubs criptions revenue, which was due to the compa ny's pa rtners hip with K iddie K andids , a nd more than 126% growth in profes s iona l
s ervices revenue. C a s h us ed in opera tions improved s ignifica ntly to $2, 700 for s econd-qua rter 2009 a s compared to $460, 800 for the s a me
period la s t yea r. T he improvement reflects the compa ny's ongoing effort to s trea mline opera tions while driving more revenue through the
growth of recurring s ubs criptions a nd through the profes s iona l s ervices contracts that have been a warded. Net los s for s econd-quarter 2009
narrowed to $424,200 from a net los s of $1. 5 million in s econd-qua rter 2008.
F or the firs t s ix months of 2009, net cas h us ed by operating activities declined to $64, 900 from $873,000 for the firs t s ix months of 2008.
T ota l revenue was $687, 400 compared to $195, 500 in the precious yea r period.
C DC C orp. (Nas daqG S : C HIN.A) C DC C orp. R eports Una udited C ons olidated E a rnings C DC C orp. reported una udited cons olida ted ea rnings res ults for the s econd quarter a nd s ix months ended J une 30, 2009. F or the quarter,
R es ults for the S econd Q ua rter and S ix Months E nded the company reported net income a ttributa ble to controlling interes t was $3, 249,000 or $0. 03 ba s ic a nd diluted ea rnings per s ha re on
J une 30, 2009 revenue of $81, 654, 000 compared to net los s attributable to controlling interes t of $9,996, 000 or $0.09 ba s ic and diluted los s per s hare on
revenue of $111,040, 000 for the s a me period a yea r a go. Income from continuing opera tions was $3,409,000 or $0. 03 ba s ic a nd diluted
earnings per s hare from continuing opera tions compa red to los s from continuing opera tions of $7, 450, 000 or $0. 07 bas ic a nd diluted los s per
s ha re from continuing operations for the s a me period a year a go. Income before income ta xes was $4,662,000 compa red to los s before
income ta xes of $6,978,000 for the s ame period a yea r ago. Adjus ted E B IT DA from continuing opera tions was $12, 477, 000 compared to
$9, 973, 000 for the s a me period a year a go. Net ca s h provided by operating a ctivities wa s $11,168,000 and ca pital s pend in purcha s e of
property, plant & equipment was $391,000 compared to net ca s h provided by opera ting a ctivities of $5,573,000 and ca pita l s pend in purcha s e
Myriad G roup AG (S WX: MYR N) Myria d G roup AG S igns C ontra ct with T -Mobile C zech Myria d G roup AG announced that it ha s been s elected by T -Mobile C zech R epublic to provide the US S D platform for its cus tomer ca re
R epublic to P rovide the US S D P latform s ervice. T he s olution exploits the s trengths of the Myriad S ervices P la tform to a llow the operator to offer US S D as a s imple trigger for
s ubs criber s elf s ervice, s o helping to reduce cus tomer churn. T he s olution is a s elf-s ervice s ys tem tha t a llows cus tomers to quickly acces s
s ervices and informa tion on their mobile hands et and cha nge their s ettings . T he s olution improves cus tomer s a tis fa ction, reducing the need
for cus tomer s ervice reques ts a nd can be upgra ded to s upport a dva nced s elf s ervices us ing gra phical interfa ces in the future. F or T -Mobile
the us e of US S D provides a n intuitive cha nnel which a llows a ny cus tomer to immediately s elf-provis ion cus tomer ca re.
Gamania Digital E ntertainment C o., G a ma nia Digita l E nterta inment C o. Ltd. R eports Audited G ama nia Digita l E ntertainment C o. L td. reported a udited cons olida ted fina ncial res ults for the firs t s ix months ended J une 30, 2009. F or the
L td. (GTS M: 6180) C ons olida ted F ina ncia l R es ults for the F irs t S ix Months qua rter, the compa ny reported cons olidated operating revenue of T W D 2, 671, 670, 000, opera ting income of T W D 384, 453, 000, net income of
E nded J une 30, 2009 T W D 291, 943, 000 a nd earnings per s ha re (E P S ) of T W D 2. 00. B enefited from the product divers ification s tra tegy, the operating revenue
s trongly increa s ed 42. 37% yea r-over-year for the firs t ha lf year 2009. T he operating revenue of the parent company a ls o performed quite well
a nd grew 24.66% yea r-over-year due to the contribution from three flags hip titles .
L ingo Media C orporation (TS XV: L M) Lingo Media C orporation, Annua l G enera l Meeting, Aug L ingo Media C orpora tion, Annual G eneral Meeting, Aug 18, 2009, a t 11: 00 E a s tern Da ylight. L ocation: W eirF oulds L LP , 130 K ing S treet
18, 2009 W es t, S uite 1500, T oronto, ON M5X 1J 5, Onta rio, C anada. Agenda : T o receive the audited financia l s tatements for the fis ca l year ended
December 31, 2008 and the report of the Auditors thereon the compa ny; to elect the directors of the company; to appoint C ollins B a rrow
T oronto L LP as auditors for the ens uing year a nd to a uthorize the directors to fix their remunera tion; to a pprove a n ordinary res olution of
dis interes ted s hareholders a uthorizing the a mendment of the company's s tock incentive pla n to increas e the ma ximum number of s hares
is s uable under the P la n; and to trans a ct s uch other bus ines s a s may properly come before the Meeting
.
Giant Interactive G roup, Inc . G ia nt Intera ctive G roup Inc. R eports Una udited G iant Interactive G roup Inc. reported unaudited cons olidated financia l res ults for the s econd quarter ended J une 30, 2009. F or the qua rter,
(NYS E : GA) C ons olida ted F ina ncia l R es ults for the S econd Q ua rter the company reported net revenue was R MB 364.1 million compa red to R MB 373. 5 million in the firs t qua rter 2009 and R MB 504. 8 million in
E nded J une 30, 2009 ; P rovides R evenue G uidance for the s econd qua rter 2008. Net income a ttributa ble to the company's s hareholders wa s R MB 231. 9 million compared to R MB 231.9 million in
the T hird Q ua rter 2009 the firs t qua rter 2009 and R MB 350. 6 million in the s econd qua rter 2008. T he year-over-year decrea s e is attributable to the decreas e in net
revenue. Non-G AAP net income a ttributa ble to the compa ny's s hareholders excluding non-ca s h s ha re-ba s ed compens ation was R MB 239. 8
million compared to R MB 240.2 million in the firs t qua rter 2009 a nd R MB 362. 5 million in the s econd qua rter 2008. B as ic a nd diluted non-
G AAP ea rnings excluding non-cas h s ha re-ba s ed compens ation per ADS were R MB 1.06 and R MB 1. 03, res pectively, compa red to ba s ic
a nd diluted non-G AAP ea rnings per ADS of R MB 1. 50 and R MB 1. 45, res pectively, for the s econd quarter 2008, and ba s ic and diluted non-
G AAP ea rnings per ADS of R MB 1.06 and R MB 1. 03, res pectively, for the firs t qua rter 2009. T he compa ny reported income from operations o
IAC /InterActiveC orp. (Nas daqGS : IAC I) IAC /InterActiveC orp. Appoints L ouis C as tle a s C E O IAC /InterActiveC orp. a nnounced that interactive entertainment veteran and lifetime a chievement award recipient L ouis C as tle ha s joined
IAC 's Ins ta ntAction Holdings as its new C E O. Under C as tle's lea ders hip, Ins tantAction will purs ue a n expa nded bus ines s s trategy that will
build upon the vis ion of true, frictionles s web publis hing, and will more effectively connect developers directly to cons umers while crea ting a ll
new IP a cros s multiple ga ming pla tforms a nd genres . C as tle, a 26-yea r gaming indus try veteran, joins the online ga ming leader to help
s pearhea d the tra ns ition of ma ins tream video ga mes to the web. C as tle s ucceeds former C E O J os h W illiams who will as s ume the role of
fellow and chief technologis t at Ins tantAction.
UOMO Media, Inc (OTC B B : UOMO) UO MO Media, Inc. R eports Audited R evenue R es ults for UOMO Media, Inc. reported a udited revenue res ults for the year ended April 30, 2009. F or the period, the company reported revenue of
the Y ea r E nded April 30, 2009 $858, 137 s etting a record a s the highes t in the company's his tory with a corres ponding growth in tota l a s s ets .
Page 9
S oc ialwis e, Inc . (OTC B B : S C L W) S ocia lwis e Inc. Appoints Mark Miller to the C ompany's S ocia lwis e Inc. a nnounced the appointment of Ma rk Miller, former S enior V ice P res ident of DC S hoes and action s ports indus try vetera n to
B oard of Advis ors the company's B oa rd of Advis ors . In this role, he will us e his extens ive network of online mercha nts , Actions S ports athletes , a nd indus try
connections to pos ition B illMyP arents as a leading youth payment s ys tem. He will be in charge of s ecuring pa rtners hips with leading online
a ction s ports brands a nd reta ilers a s well as building us er ba s e of young cons umers a nd their pa rents . Ma rk Miller has over twenty-five years
experience working in Action S ports and youth culture bus ines s es . As a s enior executive, Ma rk focus ed on developing and executing go-to-
market s tra tegies for cons umer goods compa nies . Mos t recently, he s erved as the S enior V ice P res ident a nd G eneral Ma nager of DC
S hoes , a s ubs idia ry of Q uiks ilver Inc., where he ma na ged the America s ' divis ion including s trategic pa rtners hips with both reta il a nd online
dis tribution channels .
S NAP Interactive, Inc . (OTC B B : S TVI) S NAP Intera ctive Inc. Announces Una udited S NAP Intera ctive Inc. announced una udited cons olida ted ea rnings res ults for the s econd quarter a nd s ix months ended J une 30, 2009. F or
C ons olida ted E arnings R es ults for the S econd Q ua rter the quarter, the compa ny's revenue was $784,242, a s compa red to $533, 257 for the three months ended J une 30, 2008, a 47% increa s e.
and S ix Months E nded J une 30, 2009 Net income for the quarter was $46,430 as compared to net income of $144, 862 or $0.01 per diluted s hare for the three months ended J une
30, 2008, a 68% decrea s e. Income from opera tions wa s $131,035 compa red with $145,133 for the s ame period a yea r ago. Income before
provis ion for income ta xes was $137,985 compa red with $144,862 for the s ame period a yea r ago.
F or the s ix months , the compa ny's revenue was $1,553,214, a s compa red to $1, 053, 159 for the s ix months ended J une 30, 2008, a 47%
increa s e. T he increa s e in revenue wa s prima rily due to higher enga gement on its a pplica tions in 2009 compa red to the s a me time period in
2008 as well as the introduction of premium fea tures to its a pplications to genera te additional revenue. Net income for the period wa s
$112, 902 or $0. 01 per diluted s hare a s compa red to net income of $335, 371 or $0. 03 per diluted s hare for the s ix months ended J une 30, 200
Open Text C orp. (Nas daqGS : OTE X) Open T ext C orp. P rovides E a rnings G uida nce for the O pen T ext C orp. provided ea rnings guida nce for the yea r of 2010. F or the year, the company expects to s ee s ingle-digit growth for revenues ,
Y ear of 2010 double-digit growth for a djus ted ea rnings .
K ings oft C o. L td. (S E HK : 3888) K ings oft C o. Ltd. Announces to R elea s e O pen B eta T es t K ings oft C o. L td. a nnounced that it would releas e the date for the open beta tes t of J X 3 O nline at a pres s conference to be held on Augus t
of J X3 O nline 24, 2009. T he compa ny will a ls o la unch open beta tes ts of J X 2 O nline W ai Zhuan, a s is ter ga me to J X 2 O nline, and C hun Qiu W a i Zhua n,
a nother s is ter game to C Q Online, on Augus t 20 a nd Augus t 21 res pectively. S o will the firs t expans ion pack of T he F irs t Myth 2 on Augus t
27. T hree more online games are under proprieta ry development a nd will meet gamers by the end of 2009, including Y ue Y ing C huan S huo
a nd Du G u J iu J ia n. Y ue Y ing C hua n S huo is being developed by Zhuhai Xis ha nju S oftwa re C o. L td. (S ea s on S tudio) under K ings oft.
IB 3 Networks , Inc . (OTC B B : IB NW) IB 3 Networks Inc. will C hange its T icker to IB NW E from E ffective Augus t 24, 2009, IB 3 Networks Inc. will change its O T C B B s tock ticker s ymbol to IB NW E from IB NW .
IB NW
B eyond C ommerc e, Inc. B eyond C ommerce, Inc. has filed a S helf R egis tration in B eyond C ommerce, Inc. ha s filed a S helf R egis tra tion in the a mount of $15.00 million.
(OTC B B : B YOC ) the amount of $15. 00 million.
Moggle, Inc Moggle, Inc ha s filed a S helf R egis tration in the amount Moggle, Inc has filed a S helf R egis tra tion in the amount of $12. 00 million.
of $12.00 million.
ValueC lick Inc . (Nas daqG S : VC L K ) B a rra ck, R odos & B acine Announces S umma ry Notice of B a rrack, R odos & B a cine a nnounced that purs ua nt to R ule 23 of the F ederal R ules of C ivil P rocedure and an Order of the C ourt, tha t a
P ropos ed V alueC lick Inc. C la s s Action S ettlement a nd s ettlement for $10 million in ca s h ha s been propos ed in the a bove-ca ptioned certified clas s action a ga ins t V alueC lick Inc. A hea ring will be
S ettlement Hea ring held before the Honorable Dea n D. P regers on, a t the United S ta tes Dis trict C ourt for the C entral Dis trict of C alifornia , W es tern Divis ion, 312
North S pring S treet, L os Angeles , C a lifornia 90012, at 10:00 a. m., on November 9, 2009 to determine whether the propos ed s ettlement
s hould be a pproved by the C ourt a s fair, rea s ona ble, a nd a dequate, and to cons ider the a pplica tion of P laintiffs ' C ouns el for attorneys ' fees
a nd reimburs ement of expens es .
Wizzard S oftware C orporation W izza rd Media Announces T ii P odcas t App Hits T op 100 W izzard S oftware C orporation a nnounced the a va ilability of the T ii P odca s t iP hone App currently ra nked number 58 on the 100 T op P a id
(AME X: WZE ) Lis t in iT unes App S tore Apps lis t in the P roductivity category after only three days in the iT unes App S tore. T he new App, priced a t $1. 99, is the companion App for
the T oday in iP hone podcas t. In a ddition to providing direct s trea ming acces s to the entire back catalog of T oday in iP hone podcas t
epis odes , it a ls o offers exclus ive bonus content with iP hone T ips , T ricks a nd T utoria ls via audio a nd video footage. T he company is offering
cus tomized podca s t compa nion Apps to the 11 600 podca s ts on the W izza rd Network as well as other interes ted top podcas ts as a new
mea ns to monetize the content they crea te while offering their a udience members an enha nced viewing experience.
Open Text C orp. (Nas daqGS : OTE X) Open T ext C orp. Announces Una udited C ons olidated O pen T ext C orp. announced una udited cons olida ted earnings res ults for the fourth qua rter a nd full year ended J une 30, 2009. F or the
E a rnings R es ults for the F ourth Quarter a nd F ull Y ear qua rter, the compa ny reported income from opera tions of $34, 395, 000 a ga ins t $29,293,000 a yea r a go. Income before income ta xes was
E nded J une 30, 2009 $28,508, 000 agains t $39, 875, 000 a year ago. Net income was $19, 481, 000 or $0.36 per diluted s hare on tota l revenues of $203,356,000
a ga ins t $27,254,000 or $0. 51 per diluted s ha re on tota l revenues of $200, 269,000 a year ago. Net cas h provided by operating activities wa s
$38,627, 000 agains t $44, 611, 000 a year ago. Acquis ition of capita l as s ets was a mounted to $5, 842,000 a ga ins t $1, 481,000 a year ago. Non-
G AAP ba s ed a djus ted net income wa s $39.2 million or $0.73 per diluted s ha re agains t $33. 3 million or $0. 63 per diluted s hare a year a go.
Non-G AAP net income wa s $41.6 million or $0. 78 per diluted s ha re on non-G AAP revenues of $203. 9 million.
F or the year, the company reported income from opera tions of $97, 584, 000 a ga ins t $100, 379, 000 a year a go. Income before income ta xes
wa s $80,777,000 agains t $76, 497, 000 a year a go. Net income was $56,938, 000 or $1.07 per diluted s hare on tota l revenues of $785,665,000
DigitalFX International, Inc . Digita lF X International Announces E xecutive C ha nges O n Augus t 17, 2009, Digita lF X International, Inc. 's C hief Operating Officer, Allen La ngford, res igned his pos ition with the company for
(OTC B B : DG FX) pers ona l reas ons a nd the company a ppointed Mr. J ohn P retto, a ge 46, as its C hief O pera ting O fficer, pending a pprova l by the company's
B oard of Directors . Mr. P retto has over twenty years of bus ines s a nd Informa tion technology ma nagement experience including s erving on
the board of directors of other publicly tra ded corpora tions . T he company's B oard of Directors a pproved Mr. P retto's a ppointment as the
C hief O pera ting O fficer on Augus t 20, 2009, effective a s of Augus t 17, 2009.
Figure 7. Key Developments

Source. Capital IQ
Page 10
VALUATION
Online Gaming companies lead market-cap charts: Fourteen 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 25 under
US$10 million. Online gaming companies dominate the top of the list, led by Tencent Holdings with a market cap over
US$20 billion.
Market C ap (US D m)
Tenc ent Holdings L td.
Neteas e. c om Inc .
S handa Interactive Entertainment L td. 3255. 0
Modern Times Group Mtg A B 2901. 8
IA C/InterA c tiveCorp. 2520. 9
S ohu. c om Inc . 2473. 3
Changyou. com L imited 2094.4
Gree, Inc . 2021. 1
Open Tex t Corp. 2018. 6
Perfect World Co. , L td. 1918. 6
G iant Interac tive G roup, Inc . 1754. 9
K ings oft Co. L td.
Chines e Gamer International 1009. 5 1214. 6
Mix i, Inc . 1000. 3
V alueClick Inc . 937. 8
United Online Inc . 620. 4
NEOWIZ Games Corporation 503.0
NetDragon WebS oft, Inc . 452. 8
S hutterfly , Inc . 385. 7
S K Communic ations Co. , L td. 314.4
GungHo Online Entertainment, Inc . 294. 3
CDC Corp. 278. 7
G igaMedia L td. 257. 9
Openw ave S ys tems Inc . 238. 2
Gamania Digital Entertainment Co. , L td. 233. 0
The9 L imited 215. 3
XING A G 207. 5
DA DA S pA 148. 1
OA O R B C Information S ys tems 145. 7
A ctoz S oft Co. , L td. 133. 1
NeuLion Inc orporated 116. 9
GameOn Co L td. 107. 0
Y edangOnline Corp. 103. 3
Cyberplex Inc . 97. 1
Tree. Com, Inc . 93. 0
Myriad G roup A G 90. 4
K A B Dis tribution Inc . 83. 4
TheS treet. c om, Inc . 70. 7
HanbitS oft, Inc . 67. 0
Gravity Co. , L td 66. 4
Fluid Mus ic Canada, Inc . 64. 5
GeoS entric Oy j 64. 3
Frogs ter Interactive Pic tures A G 60. 6
PNI Digital Media Inc . 53. 2
Eolith Co. L td. 50. 2
S park Netw orks , Inc . 44. 2
Ngi G roup Inc . 42. 4
DigitalTow n, Inc . 38. 3
DXN Holdings B hd 34. 8
NeXplore Corporation 33. 5
Webz en Inc . 33. 4
A Q Interac tive, Inc . 29.0
Northgate Tec hnologies L imited 28.3
S oc ialw is e, Inc . 26.6
Wiz z ard S oftw are Corporation 22. 7
L ookS mart, L td. 21. 9
Dolphin Digital Media, Inc . 20. 9
B roadWebA s ia Inc . 19. 5
Quepas a Corp. 19. 1
Y nk K orea Inc . 17. 5
A c c eleriz e New Media, Inc . 15. 8
J umbuck Entertainment Pty L td. 15. 4
L ingo Media Corporation 13. 0
UOMO Media, Inc 12. 9
S pec trumDNA , Inc . 11. 0
IA S Energy , Inc . 10. 5
B eyond Commerce, Inc . 8. 3
Worlds . c om Inc . 5. 7
CornerWorld Corporation 5. 3
MOK O. mobi L imited 5. 2
V OIS , Inc . 5. 0
DigitalPos t Interac tive, Inc . 4. 6
S NA P Interac tive, Inc . 4. 3
B right Things plc 4. 0
Ex tens ions , Inc . 3. 6
Magnitude Information S y s tems Inc . 3. 0
Wooz y Fly , Inc . 2. 6
is eemedia Inc . 2. 4
B etaw ave Corporation 2. 3
Wynds torm Corporation 1. 8
L iveWorld Inc . 1. 5
Unis erve Communic ations Corp. 1. 0
B igs tring Corp. 1. 0
A s s oc iated Media Holdings Inc . 0. 6
The Parent Company 0. 5
CLICK ER Inc . 0. 4
China Gatew ay Corporation 0. 3
Total S port Online A S 0. 1
S NM G lobal Holdings 0. 0
Dibz International, Inc . 0. 0
S ocial Media V enures , Inc . 0. 0
0 500 1, 000 1, 500 2, 000 2, 500 3, 000 3, 500 4, 000
Figure 8. Market Cap Ranking

Source. Capital IQ
Page 11
TEV/Revenue (LTM) averages 4.8x: The overall average TEV/Revenue (LTM) multiple for our group is 5.0x (vs. 4.8x last
week) (Figure 9). Two companies trade at more than 25x revenue – Bigstring Corp. (OTCBB:BSGC) at 32.5x, followed by
Dolphin Digital Media, Inc. (OTCBB:DPDM) at 28.3x. The median is only 2.0x. Note that we exclude multiples greater than
50x. Twenty-nine companies have multiples under 1.5x.
T E V/L T M R evenue (x)
35. 0
32.5
30. 0 28.3
25. 0
22.1
20.8
20. 0 17.9
16.7
15.6
14.6
15. 0
12.412.9
10.6
9.4 9.9
10. 0
7.5
6.7 6.9
A vera ge, 5.0 5.0
4.5 4.5 4.6 4.7
5. 0 3.5 3.8 4.0 4.1
2.6 2.7 3.3
1.5 1.7 1.8 2.0 2.4 2.4 2.5 2.5 2.5
0.8 0.8 0.8 0.9 0.9 0.9 1.0 1.1 1.1 1.2 1.4 1.5
0.1 0.2 0.2 0.2 0.3 0.5 0.5 0.5 0.6 0.6 0.7 0.7 0.8 0.8
0. 0
N E O WIZ G ames C orporation
MO K O .mobi L imited
UO MO Media, Inc
C LIC K E R Inc.
J umbuck E nterta inment P ty L td.
G a mania Digital E ntertainment C o., Ltd.
P N I Digital Media Inc.

G ungH o O nline E ntertainment, Inc.
C hines e G amer Interna tional

U nis erve C ommunications C orp.
N orthgate T echnologies L imited
DXN Holdings B hd
C ha ngy ou.com L imited

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

T heS treet.com, Inc .
S NAP Intera ctive, Inc.
United O nline Inc .
O pen T ex t C orp.
IAC /InterAc tiveC orp.
S pa rk N etwork s , Inc .
C y berplex Inc .
is eemedia Inc .
G igaMedia Ltd.
V alueC lic k Inc .
XIN G AG
E olith C o. Ltd.
NetDra gon WebS oft, Inc .
S ohu.com Inc .
Mix i, Inc .
G ree, Inc .
As s ociated Media Holdings Inc .
F rogs ter Intera ctiv e P ic tures AG
T encent Holdings Ltd.

B right T hings plc
P erfect World C o., Ltd.
O penwave S y s tems Inc .
H anbitS oft, Inc .
Y edangO nline C orp.
Y nk K orea Inc .
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 11.0x (vs. 11.0x last week). On a geographic basis, the
United States has the most companies (39), trading at an average of 5.1x revenue (vs. 5.1x last week) (Figure 11). Ten of
the companies are Canadian (average 5.6x revenue).
Average TEV/LTM Revenue - By Exchange Average TEV/LTM Revenue - By Country

16.0 14.6 16.0 14.6
14.0 14.0
12.0 11.8 12.0
11.0
10.0 10.0 10.3
10.3
9.9
(x)
8.0 9.9 9.1

(x)
8.0 7.9
6.0 6.8 6.4
5.5 4.64.0 6.0 5.7 5.6 5.1
4.0 3.6 2.6 2.5
2.4 2.0 2.0 2.0 1.8 4.0 4.6
2.0 0.8 0.6
2.0 2.5 2.0 2.0 1.8
0.0 0.3 0.3 0.0 0.8 0.8
OTCNO
OTCPK
OTCBB
GTSM
NasdaqGM
0.6 0.3 0.0

SEHK
HLSE
TSE
OSE
NasdaqGS
KOSE
RTS
OM
CM
XTRA
TSX
AMEX
KLSE
BSE
AIM
TSXV
SWX
0.0
ASX
Germany
United
Finland
China
Japan
Canada
United
Hong Kong
Malaysia
India
Russia
Italy
South
Taiwan
Australia
Norway
Switzerland
Sweden
# Companies 1 3 19 2 1 2 5 4 1 4 11 2 1 1 2 14 6 1 1 1 1 5 1
# Companies 1 2 1 10 3 6 10 39 1 1 2 8 1 1 1 1 1 1
Figures 10 & 11. TEV/Revenue Ranking (Exchange, Country)

Source. Capital IQ
Page 12
TEV/EBITDA (LTM) averages 11.9x: The average multiple for the 34 companies with positive EBITDA (and multiples
under 100x) is 11.0x LTM EBITDA (vs. 11.0x last week), led by Tencent Holdings (SEHK-700) 44.9x multiple (Figure 12).
Eleven companies have EBITDA multiples under 7x. The median multiple is 9.4x (vs. 9.2x last week).
T E V/L T M E B IT DA (x)
50. 0
44. 9
45. 0
40. 0
35. 0
29. 9
30. 0
26. 1
25. 0 23. 4 24. 4
21. 5 21. 9
20. 3
20. 0
14. 8
13. 6
15. 0 A verage, 11. 9 12. 4
10. 9 11. 6 11. 8
8.5 9.2 9. 4 9. 4 9. 4 9. 5 10. 0
10. 0 7.8 8.1
6.3
4. 4 4.5 5.1
2. 9 3. 2 3. 9
5. 0 1. 8 1. 9
0. 2 1. 0
0. 0
NE O WIZ G ames C orporation
J umbuck E ntertainment P ty Ltd.
G amania Digital E ntertainment C o. , Ltd.
G ungH o O nline E ntertainment, Inc .
P NI Digital Media Inc .
C hines e G amer International

O AO R B C Information S y s tems
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.

S NAP Interac tive, Inc .
T heS treet. c om, Inc .
U nited O nline Inc .
O pen T ex t C orp.
S park Network s , Inc .
C yberplex Inc .
V alueC lic k Inc .
S ohu. c om Inc .
NetDragon WebS oft, 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.
O penwave S y s tems 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 2.9x (vs. 3.1x last week). On a
geographic basis, the United States has the most companies (39), trading at an average of 9.2x EBITDA (Figure 14). Ten
of the companies are Canadian (average 13.2x EBITDA).
Average TEV/LTM EBITDA - By Exchange Average TEV/LTM EBITDA - By Country

30.0 26.0 25.0
25.0 19.2
20.0
20.0 21.9 16.8
19.2 15.0
(x)
15.0 14.6 13.6 14.3 13.2

(x)
12.4 11.6 10.7 12.4 11.6

9.4 10.9
10.0 7.8 10.0 9.4 9.2
6.3
5.0 4.5 3.9 3.2 2.9 6.3
1.8 0.2 5.0 4.5
0.0 0.2
1.8
OTCBB
GTSM
NasdaqGM
SEHK
TSE
OSE
KOSE
NasdaqGS
RTS
OM
CM
XTRA
TSX
KLSE
AMEX
TSXV
ASX
0.0 0.0
Germany
China
Japan
Canada
Hong Kong
United
Malaysia
Russia
Italy
South
Korea
States
Taiwan
Australia
Sweden
Switzerland
# Companies 3 4 2 5 1 6 1 14 2 4 1 1 2 5 19 2 1
# Companies 3 10 6 10 8 1 1 2 39 1 1 2 1 1
Figures 13 & 14. TEV/EBITDA Ranking (Exchange, Country)

Source. Capital IQ
Page 13
P/E (LTM) averages 11.0x: The average multiple for the 30 companies with positive earnings (and multiples under 100x)
is 11.0x LTM EPS (vs. 11.0x last week), led Tencent Holdings Ltd (SEHK-700) 57.4x multiple (Figure 15). Eleven
companies have P/E multiples under 10x. The median is just 12.1x.
P /E L T M (x)
70.0
60.0 57.4
51.4
50.0 45.3
40.0 37.5 38.9

33.6
30.0 27.2 27.3

21.8
19.7 20.3
20.0 16.2
14.1 14.4 14.6
11.9 12.1
A verage, 11.0 10.2 11.3 11.4
7.7 8.6
10.0 5.8 6.0
2.1 2.4 2.6 2.7 3.1
0.0
NE O W IZ G ames C orporation
J umbuck E ntertainment P ty Ltd.
G amania Digital E ntertainment C o., Ltd.
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.

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.
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 22.6x. On a geographic basis, the United States has
the most companies (39), trading at an average of 17.3x earnings (Figure 17). Ten of the companies are Canadian
(average 21.1x EPS).
Average P/E - By Country

Average P/E - By Exchange 40.0
36.0
40.0 35.0
36.0
35.0 30.0
30.0 33.6
29.6 25.0
25.0 23.1 21.8 21.1
(x)
22.6 20.0
21.8 17.3
(x)
20.0 19.5 14.3

15.0 14.1 11.7
15.0 14.1
12.1 10.6 10.0
10.0 8.6 6.0 6.0 5.8
5.8
5.0 2.1 5.0
0.0
0.0
0.0 0.0 0.0 0.0
Germany
Japan
Canada
United
China
Malaysia
Italy
OTCBB
South
Korea
GTSM
NasdaqGM
States
TSE
SEHK
KOSE
NasdaqGS
Taiwan
Australia
OM
XTRA
AMEX
TSX
KLSE
NYSE
Sweden
Switzerland
SWX
ASX
# Companies 5 3 2 19 2 6 1 2 14 4 2 1 1 5 1 # Companies 6 3 2 10 39 10 1 8 2 1 1 1
Figures 16 & 17. P/E Ranking (Exchange, Country)

Source. Capital IQ
Page 14
UPCOMING EVENTS
E arnings C alendar
C ompany Date & Time Quarter C onf C all Details
NetDragon W ebS oft, Inc. (S E HK : 777) T ues day, Augus t 25, 2009 9: 00 P M (E DT ) Q 2 2009 10-800-130-0399
T he9 L imited (Nas daqG S : NC T Y ) T hurs day, Augus t 27, 2009 9: 00 P M (E DT ) Q 2 2009 800-561-2693
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 15.8 0.57 1. 8% 26.7% 14.0% 62.9% -9.5% -13.6%
A ctoz S oft C o. , L td. KR W A052790 K OS E 133.1 19, 150 -10.1% -24.6% -23.4% 76.5% 96.6% -46.8%
A Q Interactive, Inc. JPY 3838 TS E 29.0 50, 400 1. 6% -17.8% -30.0% 62.1% -62. 1% -64.3%
A s s ociated Media H oldings Inc. US D AS MH OT C P K 0.6 0.01 -30.0% -30.0% 833.3% 180.0% -30. 0% -72.0%
B igs tring C orp. US D BSGC OT C B B 1.0 0.02 -11.1% -42.7% -29.6% 2. 4% -74. 0% -77.5%
B eta wave C orpora tion US D B W AV OT C B B 2.3 0.08 33.3% -27.3% 0.0% -52.9% -74. 2% -76.5%
B eyond C ommerce, Inc. US D B Y OC OT C B B 8.3 0.18 -33.3% -50.0% -82.0% -76.6% -93. 9% -94.2%
B right T hings plc GB P AIM:B G T A IM 4.0 0.01 -2.3% -33.3% -19.9% -16.7% -32. 4% -49.4%
B roadW ebA s ia Inc. US D BWBA OT C P K 19.5 0.23 -22.8% -22.8% -54.9% -77.2% -84. 7% -92.1%
C DC C orp. US D C H IN.A Nas da qG S 278.7 2.63 3. 5% -17.6% 68.6% 220.7% -0.8% -32.9%
C ha ngyou.com Limited US D C Y OU Nas da qG S 2, 094.4 38.08 2. 0% -8.6% 13.2% NM NM -21.3%
C hina G a tewa y C orporation US D CGWY OT C P K 0.3 0.02 -25.0% 650.0% 650.0% 650.0% -50. 0% -57.1%
C hines e G a mer International TWD G T S M:3083 GTS M 1, 009.5 393.50 -4.4% -13.1% 11.8% 211.1% 391. 1% -24.2%
C LIC K E R Inc. US D CLK Z OT C B B 0.4 0.01 -9.1% -41.2% 25.0% -87.5% -99. 2% -99.3%
C ornerW orld C orpora tion US D CW R L OT C B B 5.3 0.06 -8.3% 10.0% -38.9% -63.3% -92. 6% -93.0%
C yberplex Inc. C AD T S X: C X TS X 97.1 1.60 -3.0% -8.6% -5.3% 357.1% 158. 1% -19.6%
DADA S pA E UR C M:DA CM 148.1 6.38 4. 8% 4.6% 8.3% 18.5% -45. 7% -46.8%
DXN Holdings B hd MY R DXN K LS E 34.8 0.53 9. 3% 34.2% 41.3% 55.9% 35.9% -3.6%
Dibz Interna tional, Inc. US D DIB Z OT C P K 0.0 0.00 20.0% NM 20.0% -88.0% -97. 6% -97.6%
DigitalP os t Intera ctive, Inc. US D DG LP OT C B B 4.6 0.06 20.0% -1.6% 185.7% 650.0% 9.1% -39.4%
DigitalT own, Inc. US D DG T W OT C B B 38.3 1.40 7. 7% -30.0% -44.0% -41.7% -67. 1% -68.9%
Dolphin Digital Media, Inc. US D DP DM OT C B B 20.9 0.39 0. 0% 8.3% -35.0% -23.5% -51. 3% -65.5%
E olith C o. L td. KR W A041060 K OS E 50.2 860.00 4. 9% 9.6% 12.4% 43.3% 19.4% -25.9%
E xtens ions , Inc. US D E XT I OT C P K 3.6 0.08 -60.0% 0.0% -46.7% -60.0% -46. 7% -92.1%
F luid Mus ic C anada, Inc. C AD T S X: F MN TS X 64.5 1.32 10.0% 48.3% 76.0% 203.4% -26. 7% -26.7%
F rogs ter Intera ctive P ictures AG E UR FR G XT R A 60.6 16.75 19.6% 39.2% 104.5% 316.7% 140. 0% -3.7%
G amania Digita l E ntertainment C o., L td. TWD 6180 GTS M 233.0 50.30 -11.3% -18.1% -8.2% 127.6% 103. 8% -26.9%
G ameO n C o L td. JPY 3812 TS E 107.0 104, 700 1. 7% -2.1% 8.3% 9. 6% -17. 6% -31.6%
G eoS entric Oyj E UR G E O1V H LS E 64.3 0.05 0. 0% 66.7% 0.0% 150.0% 0.0% -28.6%
G ia nt Interactive G roup, Inc. US D GA NY S E 1, 754.9 7.75 0. 9% -5.1% 1.6% 25.2% -15. 4% -24.6%
G igaMedia L td. US D G IG M Nas da qG S 257.9 4.73 7. 3% -5.0% -22.5% -21.6% -59. 4% -61.1%
G ra vity C o., Ltd US D GR VY Nas da qG M 66.4 2.39 18.9% 55.2% 106.0% 246.4% 62.6% -9.1%
G ree, Inc. JPY T S E :3632 TS E 2, 021.1 8, 540 7. 7% 24.3% 60.8% 84.4% NM -2.4%
G ungH o Online E ntertainment, Inc. JPY 3765 OS E 294.3 243, 000 5. 7% 13.0% 56.8% 99.5% 38.1% -13.2%
H anbitS oft, Inc. KR W A047080 K OS E 67.0 3, 795 -8.0% -15.7% -31.6% 19.7% 7.2% -42.8%
IAC /InterA ctiveC orp. US D IA C I Nas da qG S 2, 520.9 19.04 3. 5% 6.3% 18.7% 25.9% 14.7% -2.7%
IAS E nergy, Inc. US D IA S A. E OT C B B 10.5 0.15 25.0% 0.0% -42.3% 275.0% -25. 0% -46.4%
is eemedia Inc. C AD IE E T S XV 2.4 0.05 -16.7% -37.5% -44.4% -47.4% -68. 8% -73.7%
J umbuck E ntertainment P ty Ltd. AU D AS X: J MB AS X 15.4 0.38 4. 2% 7.1% -16.7% -16.7% -31. 8% -38.5%
K AB Dis tribution Inc. C AD T S X: K AB TS X 83.4 1 0. 0% 0.0% 4.9% 77.8% -11. 1% -24.7%
K ings oft C o. L td. HK D 3888 S E HK 1, 214.6 9 2. 7% 20.9% 51.8% 223.5% 193. 9% -8.4%
L ingo Media C orpora tion C AD T S XV :LM T S XV 13.0 1.12 12.0% 1.8% 6.7% 40.0% -41. 7% -41.7%
L iveW orld Inc. US D LV W D OT C P K 1.5 0.05 -9.1% 42.9% -37.5% 0. 0% -80. 0% -80.0%
L ookS mart, L td. US D LO OK Nas da qG M 21.9 1.28 6. 7% 7.6% 1.6% 4. 9% -60. 5% -61.8%
Ma gnitude Information S ys tems Inc. US D MAG Y OT C B B 3.0 0.01 8. 3% -13.3% -35.0% -65.8% -59. 4% -78.3%
Mixi, Inc. JPY 2121 TS E 1, 000.3 614,000.00 1. 7% -11.7% 31.5% 57.8% -31. 0% -33.3%
Modern T imes G roup Mtg AB SEK MT G B OM 2, 901.8 310.00 7. 6% 23.0% 38.7% 178.0% -9.5% -13.3%
MO K O .mobi L imited AU D MK B AS X 5.2 0.07 -5.3% -5.3% 7.6% 57.8% 97.2% -29.0%
Myriad G roup AG C HF MY R N S WX 90.4 4.50 5. 6% 3.4% -21.7% 22.0% -54. 3% -54.5%
NE O W IZ G ames C orporation KR W A095660 K OS E 503.0 29,650.00 -6.2% -4.0% -20.9% 88.3% 175. 8% -29.4%
NetDra gon W ebS oft, Inc. HK D 777 S E HK 452.8 6.64 12.0% 9.6% 23.0% 143.2% 18.6% -7.1%
Netea s e. com Inc. US D NT E S Nas da qG S 5, 472.2 42.28 5. 1% 0.2% 31.9% 126.1% 61.9% -9.9%
NeuLion Incorpora ted C AD T S X: NL N TS X 116.9 1.10 0. 0% 34.1% 37.5% 175.0% NM -5.2%
NeXplore C orpora tion US D NXP C OT C P K 33.5 0.60 -11.8% 9.1% -14.3% -1.6% 11.1% -58.6%
Ngi G roup Inc. JPY 2497 TS E 42.4 32,400.00 -1.2% -3.0% -6.4% 86.2% -64. 9% -74.6%
Northgate T echnologies Limited INR 590057 BSE 28.3 39.40 14.9% 5.6% 1.4% 7. 9% -86. 4% -87.4%
O pen T ext C orp. US D OT E X Nas da qG S 2, 018.6 35.95 -5.8% -6.7% 8.6% 12.7% 2.5% -10.5%
O penwa ve S ys tems Inc. US D OP W V Nas da qG S 238.2 2.86 2. 1% -3.7% 43.0% 261.6% 98.6% -8.6%
P erfect W orld C o., Ltd. US D PWRD Nas da qG S 1, 918.6 39.01 7. 9% 11.6% 109.7% 216.6% 55.4% -7.0%
P NI Digital Media Inc. C AD T S XV :P N T S XV 53.2 1.67 4. 4% 11.3% -1.2% -16.5% -50. 7% -52.8%
Q uepa s a C orp. US D QP S A OT C B B 19.1 1.50 7. 1% 51.5% 51.5% 16.3% -53. 3% -56.6%
O AO R B C Information S ys tems US D R BCI R TS 145.7 1.05 0. 0% 16.7% 6.6% 238.7% -86. 2% -86.6%
S ha nda Interactive E nterta inment L td. US D S NDA Nas da qG S 3, 255.0 48.75 7. 4% -14.5% -6.5% 49.7% 84.0% -25.0%
S hutterfly, Inc. US D S F LY Nas da qG S 385.7 15.15 2. 7% -3.4% 4.9% 86.3% 62.9% -8.4%
S K C ommunications C o. , L td. KR W A066270 K OS E 314.4 9,310.00 -5.5% -1.9% -13.0% 37.9% -26. 4% -28.4%
S NA P Intera ctive, Inc. US D S TVI OT C B B 4.3 0 100.0% -11.1% -46.7% -59.6% -55. 1% -63.0%
S NM G loba l H oldings US D S NMN OT C P K 0.0 0.00 125.0% 12.5% 80.0% 350.0% -99. 4% -99.7%
S ocial Media V enures , Inc. US D S MV I OT C P K 0.0 0.17 -10.5% -46.9% 1600. 0% -86.4% -32. 0% -96.6%
S ocialwis e, Inc. US D S CLW OT C B B 26.6 0.60 -11.8% -21.4% -14.3% 53.8% -74. 8% -76.9%
S ohu.com Inc. US D S O HU Nas da qG S 2, 473.3 64.52 7. 7% 1.4% 11.1% 30.7% -14. 3% -19.2%
S pa rk Networks , Inc. US D LO V A ME X 44.2 2 1. 3% -9.8% -5.8% -15.8% -49. 8% -51.9%
S pectrumDNA, Inc. US D S P XA OT C B B 11.0 0 -2.2% 60.7% -43.8% 136.8% -61. 9% -61.9%
T encent H oldings Ltd. HK D 700 S E HK 28,087. 7 120 4. 3% 15.9% 57.2% 163.7% 79.1% -2.2%
T he P a rent C ompany US D K IDS . Q OT C P K 0.5 0.02 31.3% -29.6% 97.0% -21.2% -99. 0% -99.0%
T he9 L imited US D NC T Y Nas da qG S 215.3 8.44 1. 9% -6.0% -6.1% -29.5% -53. 9% -57.4%
T heS treet.com, Inc. US D TS CM Nas da qG M 70.7 2.31 2. 7% 12.1% 16.7% 12.1% -67. 5% -68.5%
T ota l S port Online A S NO K T OS O O T C NO 0.1 0.03 0. 0% 0.0% 0.0% -25.0% -40. 0% -40.0%
T ree.C om, Inc. US D TR E E Nas da qG M 93.0 8.61 -3.7% -19.5% -30.8% 97.5% 13.3% -34.1%
U nis erve C ommunica tions C orp. C AD T S XV :US S T S XV 1.0 0.05 0. 0% -35.7% 12.5% -43.8% -82. 0% -82.0%
U nited O nline Inc. US D UNT D Nas da qG S 620.4 7.40 1. 2% -16.6% 13.8% 47.4% -29. 7% -34.2%
U OMO Media, Inc US D UO MO OT C B B 12.9 0.15 20.0% 46.3% -46.4% 114.3% -61. 5% -85.8%
V alueC lick Inc. US D V CLK Nas da qG S 937.8 10.76 7. 5% -9.0% 3.1% 75.5% -16. 5% -20.3%
V OIS , Inc. US D V O IS OT C B B 5.0 0.01 20.0% -14.3% -33.3% -20.0% -62. 5% -73.9%
W ebzen Inc. US D W ZE N Nas da qG M 33.4 2.82 3. 7% -19.3% -39.6% 149.6% 30.6% -39.7%
W izzard S oftwa re C orporation US D W ZE A ME X 22.7 0.45 -4.3% -8.2% -21.0% -30.8% -64. 6% -74.0%
W orlds .com Inc. US D W DDD OT C B B 5.7 0.11 10.0% -18.5% -26.7% -8.3% -63. 3% -68.6%
W oozyF ly, Inc. US D W ZY F OT C B B 2.6 0.15 0. 0% NM 0.0% 0. 0% NM -96.3%
W ynds torm C orpora tion US D W Y ND OT C P K 1.8 0.10 0. 0% 0.0% 233.3% -16.7% -83. 3% -83.3%
XING A G E UR O1B C XT R A 207.5 27.49 0. 0% -6.9% -17.8% -11.3% -21. 2% -23.6%
Y eda ngOnline C orp. KR W A052770 K OS E 103.3 8, 550 -3.6% 6.6% -22.3% 36.8% 0.7% -31.0%
Y nk K orea Inc. KR W A023770 K OS E 17.5 4, 075 -14.6% -29.7% -45.7% 3. 8% -58. 8% -67.1%
H igh 125.0% 650.0% 1600. 0% 650.0% 391. 1% -2.2%
L ow -60.0% -50.0% -82.0% -88.0% -99. 4% -99.7%
Average 720.6 3.6% 7.0% 42.4% 73.3% -12.1% -47.4%
Media n 1. 9% -2.0% 1.6% 37.9% -31. 4% -44.6%
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 15.8 4.7x - - - - - -
Actoz S oft C o., Ltd. G aming S outh K orea K OS E A052790 133.1 1.1x - 5. 1x - 19.7x - 2.2x
AQ Intera ctive, Inc. G aming J apan TS E 3838 29.0 - - - - - - 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 1.0 32.5x - - - - - -
B etawave C orpora tion Media U nited S ta tes OTCB B B W AV 2.3 - - - - - - 0.5x
B eyond C ommerce, Inc. S ocial Networking U nited S ta tes OTCB B B YOC 8.3 1.2x - - - - - -
B right T hings plc S ocial Networking U nited K ingdom AIM AIM:B G T 4.0 14.6x - - - - - -
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 278.7 0.8x - 10.9x - - - -
C hangyou.com Limited G aming C hina N as da qG S C Y OU 2,094.4 7.5x 5.8x 12.4x 10.1x 14.4x 12.9x 14.2x
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 1,009.5 16.7x - 29.9x - 38.9x - 14.6x
C L IC K E R Inc. Direct Marketing U nited S ta tes OTCB B C LK Z 0.4 0.2x - - - - - -
C ornerW orld C orporation C ontent U nited S ta tes OTCB B CW R L 5.3 4.0x - - - - - -
C yberplex Inc. A dvertis ing C ana da TS X T S X: C X 97.1 0.8x 0.7x 7. 8x 6.0x 8.6x 9.7x 3.8x
DA DA S pA S ocial Networking Italy CM C M:DA 148.1 0.8x - 6. 3x - - - -
DXN Holdings B hd S ocial Networking Mala ys ia K LS E DXN 34.8 0.6x - 4. 5x - 5.8x - 0.7x
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 6.7x - - - - - -
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 20.9 28.3x 1.4x - - - 1.6x -
E olith C o. L td. G aming S outh K orea K OS E A041060 50.2 3.5x - - - - - 4.7x
E xtens ions , Inc. C ontent U nited S ta tes OTCP K E XT I 3.6 - - - - - - -
F luid Mus ic C a nada, Inc. Media U nited S ta tes TS X T S X:F MN 64.5 10.6x 7.5x - - - - 6.0x
F rogs ter Interactive P ictures A G G aming G erma ny XT R A FR G 60.6 17.9x - - - - - 8.2x
G amania Digital E ntertainment C o., Ltd. G aming T a iwa n GTS M 6180 233.0 1.5x - 8. 5x - 20.3x - 3.1x
G ameO n C o Ltd. G aming J apan TS E 3812 107.0 0.5x - 1. 9x - 11.3x - 1.3x
G eoS entric Oyj Mobile F inland H LS E G E O1V 64.3 9.9x - - - - - 10.7x
G iant Interactive G roup, Inc. G aming C hina NY S E GA 1,754.9 - - - - 2.1x 14.0x 0.3x
G igaMedia Ltd. G aming T a iwa n N as da qG S G IG M 257.9 1.0x 1.0x - 4.7x 10.2x 9.5x 2.2x
G ravity C o., Ltd G aming S outh K orea N as da qG M GR VY 66.4 - - - - 0.0x - 0.0x
G ree, Inc. S ocial Networking J apan TS E T S E : 3632 2,021.1 12.9x - 21.5x - 45.3x - 21.0x
G ungH o O nline E nterta inment, Inc. Media J apan OS E 3765 294.3 2.4x - 13.6x - - - 41.3x
Ha nbitS oft, Inc. G aming S outh K orea K OS E A047080 67.0 0.9x - - - - - 2.0x
IAC /InterActiveC orp. Media U nited S ta tes N as da qG S IAC I 2,520.9 0.6x - 14.8x - 11.9x 36.3x 1.2x
IAS E nergy, Inc. V ideo C ana da OTCB B IAS A.E 10.5 - - - - - - -
is eemedia Inc. C ontent C ana da T S XV IE E 2.4 0.9x - - - - - 1.9x
J umbuck E ntertainment P ty L td. S ocial Networking Aus tra lia AS X AS X:J MB 15.4 0.7x - 1. 8x - 6.0x - 1.5x
K A B Dis tribution Inc. C ontent C ana da TS X T S X:K AB 83.4 - - - - - - 0.9x
K ings oft C o. Ltd. G aming C hina S E HK 3888 1,214.6 9.4x - 23.4x - 27.3x - 6.6x
Lingo Media C orpora tion L earning C ana da T S XV T S XV : LM 13.0 12.4x - - - - - 13.1x
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 21.9 - - - - - - 0.8x
Magnitude Information S ys tems Inc. S ocial Networking U nited S ta tes OTCB B MA G Y 3.0 - - - - - - -
Mixi, Inc. S ocial Networking J apan TS E 2121 1,000.3 6.9x - 20.3x - 51.4x - 7.0x
Modern T imes G roup Mtg AB Media S weden OM MT G B 2,901.8 1.8x 1.7x 11.6x 13.1x 14.1x 15.4x -
MOK O .mobi Limited S ocial Networking Aus tra lia AS X MK B 5.2 3.3x - - - - - 3.7x
Myriad G roup AG Mobile S witzerla nd SWX MY R N 90.4 2.5x - - - - - 4.0x
NE OW IZ G ames C orporation G aming S outh K orea K OS E A095660 503.0 2.5x - 9. 2x - 27.2x - 13.8x
NetDra gon W ebS oft, Inc. G aming C hina S E HK 777 452.8 3.8x - 9. 5x - 16.2x - 2.4x
Netea s e.com Inc. G aming C hina N as da qG S NT E S 5,472.2 - - - - 3.1x 17.0x 0.9x
NeuLion Incorporated V ideo C ana da TS X T S X:NL N 116.9 5.0x - - - - - 8.5x
NeXplore C orporation C ontent U nited S ta tes OTCP K NXP C 33.5 - - - - - - -
Ngi G roup Inc. Media J apan TS E 2497 42.4 - - - - - - 0.9x
Northgate T echnologies Limited Direct Marketing India BS E 590057 28.3 0.3x - - - - - -
O pen T ext C orp. C ollabora tion C ana da N as da qG S OT E X 2,018.6 2.6x 2.2x 10.0x 8.4x 33.6x 14.2x -
O penwave S ys tems Inc. Mobile U nited S ta tes N as da qG S OP W V 238.2 0.7x 0.7x 24.4x 5.9x - 44.7x 3.5x
P erfect W orld C o., Ltd. G aming C hina N as da qG S PWRD 1,918.6 0.5x 2.7x 1. 0x 5.2x 2.7x 12.7x 1.3x
P N I Digital Media Inc. Digita l Ima ging C ana da T S XV T S XV :P N 53.2 2.4x 2.0x 21.9x 6.5x - 13.2x 18.3x
Q uepa s a C orp. S ocial Networking U nited S ta tes OTCB B QP S A 19.1 - - - - - - -
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 3,255.0 - - - - 2.6x 13.2x 1.1x
S hutterfly, Inc. Digita l Ima ging U nited S ta tes N as da qG S S FLY 385.7 1.5x 1.4x 11.8x 7.4x - - 2.3x
S K C ommunications C o., Ltd. S earch S outh K orea K OS E A066270 314.4 1.7x - 26.1x - - - -
S N AP Interactive, Inc. Dating U nited S ta tes OTCB B S TVI 4.3 0.8x - 2. 9x - 7.7x - 2.4x
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 26.6 - - - - - - -
S ohu.com Inc. G aming C hina N as da qG S S O HU 2,473.3 4.1x 3.5x 9. 4x 7.8x 14.6x 17.6x 4.8x
S park N etworks , Inc. S ocial Networking U nited S ta tes AME X L OV 44.2 0.8x - 3. 9x - 12.1x - 45.2x
S pectrumDN A, Inc. Media U nited S ta tes OTCB B S P XA 11.0 - - - - - - -
T encent Holdings Ltd. P orta l C hina S E HK 700 28,087.7 22.1x - 44.9x - 57.4x - 25.6x
T he P a rent C ompany Media U nited S ta tes OTCP K K IDS .Q 0.5 0.2x 0.2x - 13.0x - - -
T he9 L imited G aming C hina N as da qG S NC T Y 215.3 - - - - 2.4x 12.1x 0.1x
T heS treet.com, Inc. Media U nited S ta tes N as da qG M TS CM 70.7 0.1x 0.1x 3. 2x - - - 0.9x
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 93.0 0.5x - - 7.1x - 48.5x 1.2x
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 620.4 0.9x 0.9x 4. 4x 3.7x - 10.6x -
UO MO Media, Inc Media C ana da OTCB B UO MO 12.9 20.8x - - - - - -
V a lueC lick Inc. Media U nited S ta tes N as da qG S V CLK 937.8 1.4x 1.5x 8. 1x 5.7x - 16.8x 6.1x
V O IS , Inc. S ocial Networking U nited S ta tes OTCB B V OIS 5.0 - - - - - - 17.1x
W ebzen Inc. G aming S outh K orea N as da qG M W ZE N 33.4 - - - - 0.0x - 0.0x
W izzard S oftware C orporation P odca s ting U nited S ta tes AME X W ZE 22.7 4.5x - - - - - -
W orlds .com Inc. C ontent U nited S ta tes OTCB B W DDD 5.7 - - - - 37.5x - -
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 207.5 2.7x - 9. 4x - 21.8x - 6.8x
Y eda ngO nline C orp. G aming S outh K orea K OS E A052770 103.3 2.0x - 9. 4x - 11.4x - 3.6x
Y nk K orea Inc. G aming S outh K orea K OS E A023770 17.5 2.5x - - - - - 0.8x
High 28,087.7 32.5x 7.5x 44.9x 13.1x 57.4x 48.5x 45.2x
Low 0.0 0.0x 0.1x 0. 2x 3.7x 0.0x 1.6x 0.0x
Average 720.6 5.0x 2.1x 11.9x 7.5x 17.4x 17.8x 6.6x
Median 47.2 2.0x 1.5x 9. 4x 6.8x 12.1x 13.6x 2.7x
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 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

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 18
Financ ing - L as t Three Months (US $ m)

F in. Amount (Million) Type of financing
Month C ompany Name C ountry Angel/S eed P IP E S eries A S eries B S eries C S eries D G rand Total
J un-09 S ugar Inc. US A 16. 0 16. 0
Tumri US A 15. 0 15. 0
B oku US A 13. 0 13. 0
W imba US A 12. 0 12. 0
G rab Networks US A 12. 0 12. 0
AdC hina C hina 10. 0 10. 0
G oojet S AS F rance 8. 5 8. 5
E do Interactive US A 8. 0 8. 0
AdMeld Inc. US A 8. 0 8. 0
beeTV US A 8. 0 8. 0
blueK iwi S oftware S A F rance 6. 5 6. 5
Nokeena US A 6. 5 6. 5
B ubble Motion US A 6. 0 6. 0
S ens e Networks US A 6. 0 6. 0
Zoos k US A 6. 0 6. 0
G ather US A 5. 3 5. 3
MojoP ages US A 5. 0 5. 0
Taomee C hina 5. 0 5. 0
Animoto US A 4. 4 4. 4
G ameG round Is rael 4. 1 4. 1
R ingR evenue US A 3. 5 3. 5
C rowdcas t US A 3. 0 3. 0
YuMe US A 2. 9 2. 9
eR epublik S pain 2. 8 2. 8
News er L L C US A 2. 5 2. 5
C lic kFuel US A 2. 5 2. 5
Inigral US A 2. 4 2. 4
AdE x Media US A 2. 3 2. 3
G R OU.P S US A 2. 1 2. 1
my6s ens e Is rael 2. 0 2. 0
Yapta US A 2. 0 2. 0
OneTXT US A 2. 0 2. 0
I L ove R ewards C ana da 1. 8 1. 8
C liqs et US A 1. 5 1. 5
P icaboo US A 1. 0 1. 0
TodaC ell Is rael 1. 0 1. 0
G lubble Netherlands 1. 0 1. 0
AdW hirl US A 1. 0 1. 0
L iquidP lanner US A 1. 0 1. 0
Mas hL ogic US A 0. 5 0. 5
J un-09 Total 53.3 15.3 28.5 67.8 34.0 5.3 204.1
Page 19
F in. Amount (Million) Type of financing

Month C ompany Name C ountry Angel/S eed P IP E S eries A S eries B S eries C S eries D G rand Total
J ul-09 P andora Media US A 35. 0 35. 0
K ontera L td. Is rael 15. 5 15. 5
Ning US A 15. 0 15. 0
QuickP lay Media C ana da 12. 0 12. 0
C aus es US A 10. 0 10. 0
Outs park US A 8. 3 8. 3
C onnectE du US A 8. 2 8. 2
Acquia, Inc US A 8. 0 8. 0
S B Nation US A 8. 0 8. 0
MediaMath US A 6. 6 6. 6
Metavers um G ermany 6. 3 6. 3
iMemories US A 6. 2 6. 2
Invodo US A 6. 0 6. 0
J ambool US A 5. 0 5. 0
Quikr India P vt. L td. India 4. 1 4. 1
OP E N S ports network US A 4. 0 4. 0
S tyleC as ter US A 4. 0 4. 0
Nexage US A 4. 0 4. 0
TweetDeck UK 3. 2 3. 2
B us ca US A 2. 6 2. 6
Akademos US A 2. 5 2. 5
P rotonMedia US A 2. 5 2. 5
iL oop Mobile US A 2. 0 2. 0
C omunitae S pain 1. 7 1. 7
Aloqa G ermany 1. 5 1. 5
L at49 C ana da 1. 5 1. 5
Tributes .c om US A 1. 2 1. 2
C oTweet US A 1. 1 1. 1
C likthrough US A 1. 0 1. 0
C ognitive Matc h L imited UK 1. 0 1. 0
C ellufun US A 1. 0 1. 0
B ookF res h US A 0. 5 0. 5
P eople C apital US A 0. 5 0. 5
Mas her Media US A 0. 3 0. 3
J ul-09 Total 63.8 11.1 36.8 51.5 27.0 190.2
Aug-09 Turbine US A 50. 0 50. 0

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.c om US A 8. 5 8. 5
E do Interactive US A 8. 5 8. 5
InnoC entive US A 7. 3 7. 3
B oxee US A 6. 0 6. 0
P olyvore US A 5. 6 5. 6
K ODA US A 3. 0 3. 0
OurS tage US A 3. 0 3. 0
Z2L ive US A 3. 0 3. 0
S coreloop G ermany 2. 8 2. 8
R oblox US A 2. 2 2. 2
C hes s C ube S outh Africa 1. 3 1. 3
iS yndica US A 0. 4 0. 4
Aug-09 Total 25.3 3.0 47.2 22.6 50.0 148.1
G rand Total 142.4 15.3 42.6 151.7 108.1 82.3 542.3
Figure 23. Financing, Last Three Months

Page 20
C ompany Des c riptions - C urrent Month C apital Market Ac tivity

C ompany HQ Webs ite Des cription
B ill.com United S ta tes www.bill.com B ill. com, Inc. offers an electronic cas h management s ervice. Its s ervice s implifies the way companies ma nage bills , invoices , contracts , and
other documents . T he company delivers its s ervice through an on-demand S oftware a s a S ervice (S aaS ) model. C as hV iew is a W eb-bas ed
s ys tem that allows companies to s tore all documents , proces s es , mes s ages , and trans a ctions in one place. It gives companies a real-time
daily view of anticipated cas h flow while s imultaneous ly proces s ing trans actions . T he compa ny was formerly known as C as hV iew, Inc. a nd
changed its name to B ill. com, Inc. in J anuary, 2008. B ill. com, Inc. was founded in 2006 and is bas ed in P alo Alto, C alifornia.
B oxee United S ta tes www.boxee.tv B oxee T V , Ltd. develops media center s oftware. T he company’s s oftware enables its us ers to control media programs s tored in the pers onal
computer or the Internet doma in, and brings them to the televis ion. It enables its us ers to view, rate, and recommend content to their friends
through s ocial networking features , as well as its s ocial component allows s haring with friends . T he company was founded in 2007 and is
bas ed in New Y ork, New Y ork.
C hes s C ube S outh Africa www.chesscube.com C hes s C ube, is an online game allowing us ers to play ches s for free and maintain their online rating, s ocialize in chat rooms and invite friends
to play ches s . T he company is bas ed in S outh Africa.
E do Interac tive United S ta tes www.edointeractive.net edo interactive, Inc. develops technologies for digital marketing. T he company focus es on Marketing P latform, a behavioral targeting and
marketing platform that allows bus ines s es to create micro-targeted ma rketing campa igns ; monitor the campaign from their computer; target
k ey cons umer groups us ing demogra phic, geographic, a nd ps ychographic cons umer information to filter a nd build targeted campa igns ; and
offers demons trable s ales revenue res ults . It offers P rewarding, a tool that gives cas h incentives directly to cons umers in advance of des ired
purchas ing behavior through their pre-pa id debit Mas terC ard; C as h, a s ys tem that provides cas h rewa rds to loyal cus tomers ; and MarketIQ ,
which provides rea l-time feedback from cus tomers through s urveys and focus group tools . T he company was founded in 2007 and is bas ed
in Na s hville, T ennes s ee.
F riends R eunited United K ingdom www.friendsreunited.co.uk F riends R eunited G roup operates as an online community that connects people through a network of friends . It provides an online meeting
place for people to s ocializ e, ma ke acqua intances , and find others who s hare their interes ts . T he company a ls o ena bles members to look up
friend’s W eb pages , and s hare photos and videos . In addition, it offers online da ting s ervices . T he compa ny is bas ed in the United K ingdom.
F riends R eunited G roup operates as a s ubs idia ry of IT V plc.
G igP ark C a nada www.gigpark.com G igP ark (www. gigpa rk. com) is a s ocia l recommendations tool to find the trus ted s ervice people that friends us e
iL ike United S ta tes www.ilike.com iLike. com, Inc. operates as a s ocial mus ic dis covery s ervice and mus ic application on s ocia l networking s ites in the United K ingdom and
L atin America. It offers iLike S idebar for fans , which s cans mus ic library, recommends mus ic, and connects friends and the iLike community,
a s well as offers a lerts on concerts and favorite artis ts . T he company a ls o provides iLike Univers al Artis t Da s hboard for a rtis ts to manage
their online pres ence. In addition, it offers a mus ic-promotion platform for promoters to create multimedia a ds to target us ers by location and
mus ic tas te; and enables W eb s ite or application developers to add mus ic features . F urther, the company provides t-s hirts for men and
women online. iLike. com, Inc. was formerly known a s E volution Artis ts , Inc. T he company wa s founded in 2002 and is bas ed in S eattle,
W as hington. As of Augus t 19, 2009, iLike. com, Inc. operates as a s ubs idiary of MyS pace, Inc.
InnoC entive United S ta tes www.innocentive.com F ounded in 2001, InnoC entive built the firs t global web community for open innova tion, enabling s cientis ts , engineers , profes s iona ls and
entrepreneurs to collaborate to deliver brea kthrough s olutions for innovative organiz ations . InnoC entive S eekers , who collectively s pend
billions of dolla rs on R &D, s ubmit C hallenges to the InnoC entive Marketpla ce where more than 160, 000+ engineers , s cientis ts , inventors ,
bus ines s people, a nd res earch organiz ations in more than 175 countries a re invited to s olve them. S olvers who deliver the mos t innovative
s olutions receive financial awards ra nging up to US $1, 000,000. InnoC entive’s S eekers include commercial, government and non-profit
organiz ations s uch as P rocter & G amble, Avery Dennis on, P endulum, E li L illy and C ompany, J a ns s en, S olvay, G lobalG iving and T he
R ockefeller F oundation
iS yndica United S ta tes www.isyndica.com iS yndica, a cloud-ba s ed digital media dis tribution platform, s implifies online s elling by s yndica ting, promoting and tracking us er content on
multiple es tablis hed channels . iS yndica’s Upload O nce - S ell E verywhere™ approa ch helps us ers increas e revenue while reducing their
work load. B uilt on Amazon W eb S ervices (AW S ), our V irtua l Dis tribution S erver (V DS ) is a groundbreaking, patent pending, multi-category
s oftware-as -a-s ervice (S aaS ) dis tribution platform. iS yndica currently s upports photogra phy a nd video.
K oda United S ta tes www.koda.us K ODA was founded with a mis s ion to create a pla tform that allows emerging talent and s ma rt companies to go beyond the res ume or
traditional job pos ting. More profes s ional than F acebook but more pers onal than LinkedIn, K ODA looks to s howcas e profiles and employer
profiles that allow both s ides of the hiring equa tion to get to know each other.
MediaMath United S ta tes www.mediamath.com Media Math, LLC provides cros s -exchange a dvertis ing management s ervices and technology. T he company offers S ingularity, a media
buying platform for advertis ing a gencies , which provides technology, s trategy, s ervices , and ins ights to trade a cros s dis play a dvertis ing
exchanges on behalf of advertis ers . Media Math, LLC was founded in 2007 and is bas ed in New Y ork, New Y ork .
Mint United S ta tes www.mint.com Mint S oftware, Inc. provides a W eb-bas ed s olution for online fina ncial mana gement. It offers money mana gement, debt management,
expens e tracking, inves tment ma nagement, budget management, mutual fund, IR A management, a nd financial pla nning s ervices . T he
company als o provides s ugges tions bas ed on us er’s s pending patterns and a utomatic categorization of purcha s es . Mint S oftware, Inc. was
founded in 2006 and is bas ed in Mountain V iew, C a lifornia .
OurS tage United S ta tes www.ourstage.com O urS ta ge, Inc. offers a democra tic competition that allows fa ns to decide the bes t artis t in entertainment in the United S tates . Its
O urS ta ge. com allows the artis t to upload their mus ic or video, and decide which competition to enter, s o that the Internet a udience judges
the work s ide by s ide with the work of others . At the end of ea ch month, the top performers enter into the company’s S MS text voting period,
where the artis t in each channel with the mos t S MS votes wins the priz e. OurS tage, Inc. was founded in 2006 and is bas ed in C helms ford,
Mas s achus etts .
P olyVore United S ta tes www.polyvore.com P olyvore, a fa s hion 2. 0 company founded by the man res pons ible for Y ahoo P ipes , lets us ers mix and ma tch complete outfits by dragging
a nd dropping clothing images found on the web. It’s part s ocia l network, and part des igners ’ club, the end res ult being a place where us ers
can put together their dream outfit or learn about the lates t fas hions from other us ers .
R ichR elevance United S ta tes www.richrelevance.com richrelevance, Inc. provides pers ona liza tion and product recommenda tion tools for the eC ommerce s ites . It offers R ichrecs , which offers
product recommenda tions to pers onaliz e cus tomer's s hopping experience; myrecs that enga ges loyal s hoppers with a pers onalized pa ge of
releva nt product recommendations ; and richmail, which enables cros s -s elling a nd up s elling of relevant products . richreleva nce, Inc. was
founded in 2005 and is headquartered in S an F rancis co, C alifornia. It has loca tions in S an Diego, C alifornia; Dallas a nd Hous ton, T exas ; and
New Y ork, New Y ork.
R oblox United S ta tes www.roblox.com R oblox C orpora tion develops online gaming s oftware. R oblox C orpora tion was founded in 2004 and is bas ed in P ortola V alley, C alifornia.
Traffiq United S ta tes www.traffiq.com T R AF F IQ , Inc. , a dis pla y advertis ing mark etplace, operates a digital media management platform that connects buyers and s ellers of online
media. Its platform provides a s uite of enterpris e tools that enables negotiations for deal points and centraliz ed advertis ing operations ,
including trafficking, inventory management, tra cking a nd optimiz ation, and billing. T he company’s pla tform incorporates components of the
media planning, buying, and s elling proces s , including s ite s earch, inventory pa ckaging tools , negotiation management, order execution,
a utomated R F P dis tribution, campa ign optimiz ation, a nd publis her reconciliation/invoicing. It s erves advertis ers and publis hers . T he
company was founded in 2006 and is bas ed in New Y ork, New Y ork with an additional office in V ienna, V irginia.
Turbine Inc. United S ta tes www.turbine.com T urbine, Inc. , an interactive media company, engages in developing, launching, and operating online entertainment in North America . It
offers online games , including multiplayer online role-pla ying games . T he company operates s ocial gaming communities . It als o s ells its
games through reta ilers in North America and E urope. T urbine, Inc. was formerly known a s T urbine E ntertainment S oftware C orp. T he
company was founded in 1994 and is headquartered in W es twood, Ma s s achus etts .
Z2L ive United S ta tes www.z2live.com Z2L ive, a mobile multiplayer ga ming platform, was formed to leverage the new capa bilities of mobile devices , the s eamles s flow between
mobile and W eb communities and the advent of cons umer-focus ed marketplaces . T he compa ny was founded in 2009 by Damon Danieli, a
14-year Micros oft veteran, David B luhm, a long time veteran of mobile content and entertainment and Madrona V enture G roup, a S ea ttle-
bas ed venture capital firm. Z2Live’s mis s ion is to enable multipla yer gaming acros s all mobile devices and all wireles s networks .
Figure 24. Company Descriptions

Source. Company reports, Capital IQ, Crunchbase
Page 21
RELEVANT DISCLOSURES APPLICABLE TO: NONE
LIST OF DISCLOSURE TERMS:
1. None applicable.
ANALYST CERTIFICATION
Each analyst of Research Capital Corporation whose name appears in this report hereby certifies that (i) the
recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii)
no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or
recommendations expressed in this research report.
I n f o r ma t i o n a b o u t Re s e a r ch C a p i t a l C o r p o r a t i o n ’ s Ra t i n g S y s t e m, t h e d i s t r i b u t i o n o f o u r r e s e a r ch t o cl i e n t s a n d t h e p e r ce n t a g e o f r e c o m me n d a t i o n s wh i c h a r e i n e a c h
o f o u r r a t i n g c a t e g o r i e s i s a v a i l a b l e o n o u r we b si t e a t ww w. r e s e a r ch c a p i t a l . c o m.
T h e i n f o r ma t i o n c o n t a i n e d i n t h i s r e p o r t h a s b e e n d r a wn f r o m s o u r c e s b e l i e ve d t o b e r e l i a b l e b u t i t s a c cu r a c y o r co mp l e t e n e ss i s n o t g u a r a n t e e d , n o r i n p r o vi d i n g i t
d o e s R e s e a r c h Ca p i t a l C o r p o r a t i o n a s s u me a n y r e sp o n si b i l i t y o r l i a b i l i t y . R e s e a r ch C a p i t a l C o r p o r a t i o n , i t s d i r e ct o r s , o f f i c e r s a n d o t h e r e mp l o y e e s ma y , f r o m t i me t o
t i me , h a v e p o si t i o n s i n t h e s e cu r i t i e s me n t i o n e d h e r e i n . Co n t e n t s o f t h i s r e p o r t c a n n o t b e r e p r o d u c e d i n wh o l e o r i n p a r t wi t h o u t t h e e xp r e ss e d p e r mi s si o n o f R e se a r ch
C a p i t a l C o r p o r a t i o n . ( U . S . I n s t i t u t i o n a l Cl i e n t s — Re s e a r ch C a p i t a l U . S. A . I n c. ( a wh o l l y o wn e d s u b si d i a r y o f R e s e a r c h C a p i t a l Co r p o r a t i o n ) a cc e p t s r e s p o n si b i l i t y f o r
t h e c o n t e n t s o f t h i s r e p o r t s u b je c t t o t h e t e r ms & l i mi t a t i o n s s e t o u t a b o v e . F i r ms o r i n s t i t u t i o n s r e ce i vi n g t h i s r e p o r t s h o u l d e f f e ct t r a n s a ct i o n s i n s e c u r i t i e s d i sc u s se d
i n t h e r e p o r t t h r o u g h R e s e a r ch C a p i t a l U . S . A . I n c. , a B r o k e r - D e a l e r R e g i s t e r e d wi t h t h e U n i t e d S t a t e s S e cu r i t i e s a n d E xc h a n g e C o m mi s si o n ) .
Tor on to 4 16. 8 60. 76 00 M ontr eal 51 4. 39 9. 150 0 V anco u ver 60 4. 66 2. 180 0 C al gar y 40 3. 26 5. 740 0 R egi na 306. 566. 7550
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SOFTWARE & SERVICES 25 AUGUST 2009

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

CONTENT DISTRIBUTIO N ACROSS PLATFO RMS BECOMING KEY

Financing Activity Last Twelve Months

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

THE WEB 2.0 UNIVERSE

Figure 1. Web 2.0 Universe Summary

Financing Activity Last Twelve Months

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

Figure 2. Financings, Last Twelve Months

Source. Company reports

Figure 3. Capital Market Activity, Last Three Months

Financing & M/A Summary - 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

INDUSTRY NEWS (PARTNERSHIPS, FINANCIAL RESULTS, NEW PRODUCTS)

Figure 7. Key Developments

Figure 8. Market Cap Ranking

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

J umbuck E nterta inment P ty L td.

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 ha ngy 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.

Dolphin Digital Media, Inc.

Modern T imes G roup Mtg AB

NeuLion Inc orporated

Lingo Media C orporation

S NAP Intera ctive, Inc.

United O nline Inc .

V alueC lic k Inc .

As s ociated Media Holdings Inc .

F rogs ter Intera ctiv e P ic tures AG

T encent Holdings Ltd.

O penwave S y s tems Inc .

H anbitS oft, Inc .

Y edangO nline C orp.

S ocial Media V enures , Inc .

B igs tring C orp.

T otal S port O nline AS

Acceleriz e New Media , Inc .

K ings oft C o. Ltd.

Ac toz S oft C o. , Ltd.

Wiz z ard S oftware C orporation

Figure 9. TEV/Revenue Ranking

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

8.0 9.9 9.1

0.6 0.3 0.0

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

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

C hangy ou. c om L imited

S K C ommunic ations C o. , L td.