Web 2.0 Weekly - Feb 2., 2010

SOFTWARE & SERVICES 2 FEBRUARY 2010
David Shore, CFA, MBA 416.860.6784

WEB 2.0 WEEKLY dshore@mackieresearch.com
Damian Wojcichowsky, CFA 416.860.7652
Public vs. Private Markets

Shaky Public Markets Continue…
Publicly-traded Web 2.0 companies declining for three weeks: Thirty-eight companies in our universe had negative
stock price performances (averaging -4.9%) over the past week (for stocks with prices greater than $1), while 12
companies showed positive 1-week returns (averaging +36.1% - or 9.2% excluding one thinly traded outlier –
DigitalTown).
1 Week P rice P erformance

DigitalTow n, Inc. 331.0%
V elti Plc 45.3%
TheS treet.com, Inc. 22.6%
Gravity Co., Ltd 14.4%
A s knet A G 4.7%
Ngi Group Inc. 4.1%
Lingo Media Corporation 3.8%
Mix i, Inc. 3.7%
Frogs ter Interactive Pictures A G 1.0%
Perfect World Co., Ltd. 1.0%
Modern Times G roup Mtg A B 0.7%
PNI Digital Media Inc. 0.6%
Cy berplex Inc. 0.0%
IA C/InterA ctiveCorp. 0.0%
G iant Interactive Group, Inc. -0.3%
Changy ou.com Limited -0.3%
V alueClick Inc. -0.4%
A Q Interactive, Inc. -0.5%
Open Tex t Corp. -0.6%
Quepas a Corp. -1.7%
S K Communications Co., Ltd. -1.7%
NetDragon WebS of t, Inc. -1.7%
DA DA S pA -1.9%
XING A G -2.0%
G ameOn Co Ltd. -2.2%
S park Netw orks , Inc. -2.4%
Y nk K orea Inc. -2.4%
Neteas e.com Inc. -2.6%
HanbitS of t, Inc. -2.8%
S hutterfly , Inc. -3.4%
The9 Limited -3.6%
Openw ave S y s tems Inc. -3.9%
My riad G roup A G -4.1%
CDC Corp. -4.1%
G igaMedia Ltd. -4.2%
G ungHo Online Entertainment, Inc. -4.2%
S handa Interactive Entertainment Ltd. -4.8%
G amania Digital Entertainment Co., -5.1%
United Online Inc. -5.4%
Tencent Holdings Ltd. -5.5%
K ings oft Co. Ltd. -6.1%
Tree.Com, Inc. -6.3%
Northgate Technologies Limited -6.9%
Webz en Inc. -7.1%
Gree, Inc. -8.6%
A ctoz S oft Co., Ltd. -10.3%
S ohu.com Inc. -10.7%
NEOWIZ Games Corporation -11.1%
Eolith Co. Ltd. -13.0%
Chines e Gamer International -15.5%
Y D Online Corp. -17.8%
-0.5 0 0.5 1 1.5 2 2.5 3 3.5
… But Venture Rounds Continue to Attract Investors

January breaches the $200 million barrier: Total transaction value in the Web 2.0 universe for January was $214.1
million. The number of financings ended at 23, averaging $9.3 million each. In comparison, total capital raised in
December was $450.4 million, averaging $12.9 million over 35 deals. November was $204.4 million, averaging $10.8
million (19 deals); and October was $176.1 million, averaging $5.9 million (30 deals).
February 1 brings $45 million in deal announcements: Even though the calendar has turned over to February,
another $45 million in deals (clearly originating in January) were announced on the first day of the month. This would
bring the January funding total to $259 million – bringing the month in line with the Y/Y comparison.
This report has been created by Analysts that are employed by Mackie Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report.
www.mackieresearch.com
Toronto 416.860.7600 Montreal 514.399.1500 Vancouver 604.662.1800 Calgary 403.218.6375 Regina 306.566.7550 St. Albert 780-460-6460
Page 2
The Web 2.0 Universe

Eighty-nine public Web 2.0 companies: Our Web 2.0 universe contains 89 companies, with a combined market cap of
approximately $72 billion (Figure 1). The median market cap for the group is $57 million, with average trailing revenue
of $442 million (median $25 million). The companies are also generally profitable with a median EBITDA margin of
16.0%. On a valuation basis, the overall average is 4.8x trailing revenue (median 2.3x) and 12.2x trailing EBITDA
(median 9.5x). Twenty-two 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 xchange C urrenc y 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 L Z OT C B B US D United S ta tes 0. 56 16. 1 4. 1 (1. 5) -36. 5% 5. 1x - 11
Actoz S oft C o. , L td. 9/30/2009 A052790 K OS E KRW S outh K orea 14, 800 114. 7 121. 7 27. 0 22. 2% 0. 6x 2. 7x NA
AQ Intera ctive, Inc. 9/30/2009 3838 TS E JPY J a pa n 87, 100. 00 51. 7 NM NM NM 0. 4x 8. 1x NA
As knet AG 9/30/2009 X T R A: A5A XT R A E UR G erma ny 3. 35 24. 3 9, 526. 3 483. 6 5. 1% 0. 1x - NA
As s ocia ted 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 13. 2x - 3
B eta wave C orpora tion 9/30/2009 B W AV OT C B B US D United S ta tes 0. 14 4.1 8. 4 (14. 3) NM 0. 2x - 48
B eyond C ommerce, Inc. 9/30/2009 B Y OC OT C B B US D United S ta tes 0. 02 1.2 13. 5 (12. 4) -91. 9% 1. 0x - 86
B igs tring C orp. 9/30/2009 BS GC OT C B B US D United S ta tes 0. 02 1.4 0. 1 (1. 0) NM 38. 3x - 4
B right T hings plc 9/30/2009 AIM: B G T AIM GBP United K ingdom 0. 02 7.9 0. 1 (3. 6) NM - - 46
B roa dW ebAs ia Inc. 9/30/2008 BWBA OT C P K US D United S ta tes 0. 06 5.1 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. 35 249. 1 334. 2 20. 0 61. 7% 5. 8x 9. 4x 628
C ha ngyou. com Limited 9/30/2009 C Y OU Na s daqG S US D C hina 32. 67 1, 796.9 255. 3 157. 4 61. 7% 5. 8x 9. 4x 628
C hines e G a mer International 9/30/2009 G T S M: 3083 GTS M TWD T aiwa n 319. 00 842. 8 0. 0 (0. 1) NM 10. 9x 18. 8x NA
C ornerW orld C orpora tion 10/31/2009 CWR L OT C B B US D United S ta tes 0. 03 2.9 9. 2 NM NM 1. 3x - 16
C yberplex Inc. 9/30/2009 T S X: C X TS X C AD C a na da 1. 04 69. 1 2, 135. 5 1, 239. 2 58. 0% 0. 4x 3. 9x NA
DADA S pA 6/30/2009 C M: DA CM E UR Ita ly 5. 10 119. 0 13. 2 NM NM 0. 7x 5. 4x NA
Digita lP os t Intera ctive, Inc. 9/30/2009 DG L P OT C B B US D United S ta tes 0. 05 3.9 1. 2 (0. 9) -73. 8% 5. 1x - 7
Digita lT own, Inc. 11/30/2009 DG T W OT C B B US D United S ta tes 1. 25 34. 3 0. 0 (1. 4) NM - - 3
Dolphin Digita l Media , Inc. 9/30/2009 DP DM OT C B B US D United S ta tes 0. 26 14. 8 0. 3 (4. 6) 11. 1% 0. 8x 4. 0x NA
DXN Holdings B hd 11/30/2009 DXN K LS E MY R Ma lays ia 0. 68 45. 6 33. 9 3. 8 11. 1% 0. 8x 4. 0x NA
E n2G o Interna tiona l, Inc. 11/30/2009 E TGI OT C B B US D United S ta tes 0. 90 21. 4 NM (1. 9) NM - - NA
E olith C o. L td. 9/30/2009 A041060 K OS E KRW S outh K orea 670. 00 45. 5 0. 2 0. 0 18. 7% 7. 5x 15. 8x NA
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. 58 96. 1 5. 6 (3. 0) -54. 0% 15. 7x - NA
F rogs ter Interactive P ictures AG 6/30/2009 FR G XT R A E UR G erma ny 19. 20 70. 8 8. 0 (4. 3) -54. 0% 7. 3x - NA
G ama nia Digital E nterta inment C o. , L td. 9/30/2009 6180 GTS M TWD T aiwa n 53 253. 1 0. 2 (0. 1) -47. 0% 1. 5x 9. 0x NA
G ameO n C o L td. 9/30/2009 3812 TS E JPY J a pa n 71400. 00 75. 4 53. 6 8. 8 16. 5% 0. 0x 0. 1x NA
G eoS entric O yj 9/30/2009 G E O 1V HL S E E UR F inla nd 0. 04 51. 7 10, 207. 7 2, 398. 7 23. 5% 12. 0x - 118
G iant Interactive G roup, Inc. 9/30/2009 GA NY S E US D C hina 7. 33 1, 662.6 0. 5 (1. 9) NM - - 1, 570
G iga Media L td. 3/31/2009 G IG M Na s daqG S US D T aiwa n 2. 76 150. 5 183. 6 NM NM 0. 5x - 751
G ra vity C o. , L td 9/30/2009 GR VY Na s daqG M US D S outh K orea 2 53. 1 0. 2 NM NM - - 469
G ree, Inc. 12/31/2009 T S E : 3632 TS E JPY J a pa n 5, 290 2, 592.7 651. 5 230. 7 35. 4% 9. 3x 15. 8x NA
G ungHo O nline E nterta inment, Inc. 9/30/2009 3765 OS E JPY J a pa n 210, 200 263. 1 263. 0 154. 8 58. 8% 1. 9x 8. 5x NA
HanbitS oft, Inc. 9/30/2009 A047080 K OS E KRW S outh K orea 3975. 00 76. 6 9. 5 2. 1 22. 3% 1. 1x - NA
IAC /InterActiveC orp. 9/30/2009 IAC I Na s daqG S US D United S ta tes 20. 29 2, 677.7 1, 359. 6 82. 4 42. 8% 0. 4x 0. 8x 79
InternetArra y, Inc. 12/31/2006 INAR OT C P K US D United S ta tes 0. 00 0.0 5. 9 (4. 0) 40. 2% 5. 5x 13. 8x 2, 271
is eemedia Inc. 9/30/2009 IE E T S XV C AD C a na da 0. 18 8.9 1. 9 (4. 3) NM 4. 9x - NA
J umbuck E ntertainment L imited 6/30/2009 AS X: J MB AS X AUD Aus tra lia 0. 29 12. 9 17. 5 7. 5 42. 8% 0. 4x 0. 8x 79
K ings oft C o. Ltd. 9/30/2009 3888 S E HK HK D C hina 5. 99 847. 2 143. 4 57. 7 40. 2% 5. 5x 13. 8x 2, 271
L ingo Media C orporation 9/30/2009 T S XV : L M T S XV C AD C a na da 1. 10 13. 2 1. 4 (2. 4) NM 9. 4x - NA
L ookS ma rt, L td. 9/30/2009 LOOK Na s daqG M US D United S ta tes 0. 96 16. 5 54. 0 (4. 5) -8. 4% - - 90
Ma gnitude Informa tion S ys tems Inc. 9/30/2009 MAG Y OT C B B US D United S ta tes 0. 01 6.2 0. 1 (2. 3) NM - - 14
Mixi, Inc. 9/30/2009 2121 TS E JPY J a pa n 644, 000 1, 084.1 136. 3 45. 0 33. 0% 7. 0x 21. 2x NA
Modern T imes G roup Mtg AB 9/30/2009 MT G B OM SEK S weden 345 3, 198.6 1, 963. 6 277. 4 14. 1% 1. 9x 13. 4x 2, 969
MO K O .mobi Limited 6/30/2009 MK B AS X AUD Aus tra lia 0. 13 14. 1 0. 7 (2. 5) NM 18. 0x - NA
Multiplied Media C orpora tion 9/30/2009 T S XV : MMC T S XV C AD C a na da 0. 23 28. 5 0. 2 (4. 8) NM - - NA
Myria d G roup AG 6/30/2009 MY R N SWX C HF S witzerla nd 4. 70 201. 3 63. 0 3. 4 5. 4% 3. 1x - 405
NE OW IZ G a mes C orpora tion 12/31/2008 A095660 K OS E KRW S outh K orea 30, 950 574. 2 217. 7 58. 5 26. 8% 2. 6x 9. 6x NA
NetDra gon W ebS oft, Inc. 9/30/2009 777 S E HK HK D C hina 4. 10 279. 4 91. 4 27. 8 30. 4% 1. 4x 4. 6x 2, 426
Netea s e. com Inc. 9/30/2009 NT E S Na s daqG S US D C hina 32. 99 4, 269.8 483. 0 291. 9 60. 4% - - 3, 109
NeuL ion Incorpora ted 9/30/2009 T S X: NL N TS X C AD C a na da 0. 69 77. 6 24. 9 (16. 1) -64. 5% 2. 5x - 237
NeX plore C orpora tion 9/30/2009 NXP C OT C P K US D United S ta tes 0. 70 39. 0 0. 5 NM NM - - NA
Ngi G roup Inc. 9/30/2009 2497 TS E JPY J a pa n 28, 200 38. 2 79. 8 3. 1 3. 9% - - NA
Northgate T echnologies L imited 30/09/2009 590057 BSE INR India 24. 45 18. 5 48. 2 (51. 7) NM 0. 4x - NA
O AO R B C Informa tion S ys tems 31/12/2007 R BCI R TS US D R us s ia 1. 30 180. 3 0. 0 (0. 3) NM 0. 0x 0. 3x NA
O riented Media G roup B erha d 30/09/2009 O ME DIA K LS E MY R Ma lays ia 0. 14 5.3 NM NM 25. 9% 2. 9x 11. 0x 3, 900
O pen T ext C orp. 30/09/2009 OT E X Na s daqG S US D C a na da 39. 98 2, 254.1 814. 5 211. 1 25. 9% 2. 9x 11. 0x 3, 900
O penwa ve S ys tems Inc. 30/09/2009 OP W V Na s daqG S US D United S ta tes 2. 21 184. 6 190. 5 6. 2 3. 3% 0. 4x 12. 8x 590
T he P a rent C ompa ny 8/2/2008 K IDS . Q OT C P K US D United S ta tes 0. 02 0.5 112. 0 (13. 5) 55. 0% 2. 3x 12. 9x NA
P erfect W orld C o. , L td. 9/30/2009 PWRD Na s daqG S US D C hina 38. 20 1, 900.7 27. 9 0. 9 3. 3% 0. 3x 0. 6x 2, 096
P NI Digita l Media Inc. 9/30/2009 T S XV : P N T S XV C AD C a na da 1. 76 57. 2 1, 882. 7 1, 035. 6 55. 0% 2. 3x 12. 9x NA
Q uepa s a C orp. 9/30/2009 QP S A OT C B B US D United S ta tes 2. 95 37. 6 0. 2 (9. 8) NM - - 74
R ea l V a lue E s tates , Inc. 11/30/2009 R V LU OT C B B US D Is ra el 1. 50 9.6 NM NM NM - - 3, 124
S a ha ra Media Holdings , Inc. 9/30/2009 S HHD OT C B B US D United S ta tes 0. 25 7.8 0. 0 (4. 7) NM - - 514
S handa Intera ctive E nterta inment Ltd. 9/30/2009 S NDA Na s daqG S US D C hina 46. 16 3, 104.5 694. 5 317. 3 45. 7% - - 3, 124
S hutterfly, Inc. 9/30/2009 S F LY Na s daqG S US D United S ta tes 15. 83 406. 4 223. 1 27. 0 12. 1% 1. 3x 10. 9x 514
S K C ommunica tions C o., L td. 12/31/2008 A066270 K OS E KRW S outh K orea 14, 750 543. 6 202. 4 13. 2 6. 5% 2. 7x 41. 3x NA
S NAP Intera ctive, Inc. 9/30/2009 S TVI OT C B B US D United S ta tes 0. 25 8.1 3. 4 0. 5 15. 6% 1. 9x 12. 3x 11
S ocia l Media V entures Inc. 12/31/2008 S MV I OT C P K US D United S ta tes 0. 00 0.0 0. 1 (0. 1) NM - - NA
S ocia lwis e, Inc. 9/30/2009 S C LW OT C B B US D United S ta tes 0. 46 21. 9 NM (5. 5) NM - - NA
S ohu. com Inc. 9/30/2009 S O HU Na s daqG S US D C hina 50. 22 1, 931.3 501. 0 218. 4 43. 6% 2. 8x 6. 4x 3, 197
S park Networks , Inc. 9/30/2009 LOV AME X US D United S ta tes 2. 88 59. 3 47. 5 10. 0 21. 0% 1. 2x 5. 5x 183
S pectrumDNA, Inc. 9/30/2009 S P XA OT C B B US D United S ta tes 0. 15 7.3 0. 1 (2. 5) NM - - 7
T encent Holdings L td. 9/30/2009 700 S E HK HK D C hina 141 33, 166. 7 1, 588. 8 811. 5 51. 1% 22. 9x 44. 8x 6, 194
T he9 L imited 3/31/2009 NC T Y Na s daqG S US D C hina 6. 99 175. 5 248. 7 65. 6 26. 4% - - 1, 626
T heS treet. com, Inc. 9/30/2009 TS CM Na s daqG M US D United S ta tes 3. 09 94. 3 60. 3 (1. 1) -1. 8% 0. 5x - 310
T ree. C om, Inc. 9/30/2009 TR E E Na s daqG M US D United S ta tes 7. 29 79. 5 217. 1 9. 7 4. 5% 0. 2x 5. 5x 700
Unila va C orpora tion 12/31/2008 UNL A OT C B B US D United S ta tes 0. 14 14. 0 5. 3 (1. 0) -18. 1% 2. 7x - 39
Unis erve C ommunica tions C orp. 8/31/2009 T S XV : US S T S XV C AD C a na da 0. 08 1.9 5. 1 (0. 9) -18. 1% 0. 4x 43. 2x NA
United Online Inc. 9/30/2009 UNT D Na s daqG S US D United S ta tes 6. 47 547. 3 996. 8 212. 9 -42. 2% 4. 1x - NA
UOMO Media , Inc 10/31/2009 UO MO OT C B B US D C a na da 0. 04 3.5 1. 0 (0. 4) -42. 2% 4. 1x - NA
V a lueC lick Inc. 9/30/2009 V C LK Na s daqG S US D United S ta tes 9. 56 819. 0 545. 7 130. 8 24. 0% 1. 2x 5. 0x 1, 189
V elti P lc 6/30/2009 VEL AIM GBP United K ingdom 2. 91 174. 6 83. 8 17. 2 NM - - 2
V OIS , Inc. 9/30/2009 V O IS OT C B B US D United S ta tes 0. 01 10. 9 0. 0 (1. 0) NM - - 2
W ebzen Inc. 9/30/2009 K O S E : A069080 K OS E KRW S outh K orea 13, 100 136. 6 24. 2 2. 7 11. 0% 3. 1x 28. 4x 328
W izzard S oftware C orpora tion 9/30/2009 W ZE AME X US D United S ta tes 0. 36 19. 2 5. 2 (3. 9) -76. 4% 4. 0x - 110
W orlds . com Inc. 9/30/2009 W DDD OT C B B US D United S ta tes 0. 09 4.8 0. 1 (0. 6) NM - - 1
XING AG 9/30/2009 O 1B C XT R A E UR G erma ny 29. 00 220. 1 61. 4 16. 6 27. 0% 2. 7x 9. 9x 266
Y D O nline C orp. 12/31/2007 A052770 K OS E KRW S outh K orea 5, 500 72. 6 60. 3 13. 0 21. 6% 1. 3x 6. 1x NA
Y nk K orea Inc. 12/31/2008 A023770 K OS E KRW S outh K orea 2, 800 13. 2 12. 5 1. 3 10. 5% 1. 0x 9. 3x NA
High 33, 166. 7 10, 207.7 2, 398. 7 61. 7% 38. 3x 44. 8x 6, 194
L ow 0.0 0. 0 -51.7 -91. 9% 0. 0x 0. 1x 1
Average 769.6 442.3 105.0 10.5% 4.2x 11.5x 969
Median 53. 1 24.6 0. 5 17. 6% 2. 3x 9. 4x 288
Figure 1. Web 2.0 Universe Summary

Source. Capital IQ
Page 3
Capital Markets Activity (M&A and Financing)

Breached the $200 million barrier: Total transaction value in the Web 2.0 universe for January was $214.1 million. The
number of financings ended at 23, averaging $9.3 million each. In comparison, total capital raised in December was
$450.4 million, averaging $12.9 million over 35 deals. November was $204.4 million, averaging $10.8 million (19 deals);
and October was $176.1 million, averaging $5.9 million (30 deals).
Financing Activity Last Twelve Months
500.0 16.0
450.0 13.9
14.0
12.9
400.0
12.0
350.0 10.8
9.3 10.0
300.0 9.0
(US$m)
(US$m)
250.0 8.0
7.0 7.2
6.9
6.5
6.2
200.0 5.9
5.6 6.0
4.7
150.0
4.0
100.0
2.0
50.0
0.0 0.0
Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10
*May-09 includes $200m FB investment Total Average

Dec-09 includes $180m Zynga investment
Figure 2. Financings, Last Twelve Months

Source. Company reports
Page 4
Deal round-up for January: The large deal highlights for the month include:
 Mochi Media – U.S.-based game designer – was acquired by China-based Shanda Games for $80 million.
 StudioNow – online video creation platform developer – was acquired by AOL for $36.5 million in cash/stock.
 Quantcast – a web analytics service – raised $27.5 million in its third round of financing.
 Paymo – mobile payment service – raised $25 million in its third round of funding.
 Yelp – location-based social network – raised $25 million in its fourth round.
 Visible Technologies – online brand management solutions developer – raised $22 million in Series D financing.
 Guvera – Australian ad-based music distribution network – raised $20 million in its third round.
 6 Waves – Chinese online game developer – raised $17.5 million in its first round of funding.
 Spiceworks – an ad-supported IT management software developer – raised $16 million in its third round of financing.
 SMSGupShup – a popular social network in India – raised $12 million in its second round of funding.
All other deals in the month were in the amount of $10 million or less. For additional details on financings, see Figures
23 and 24 (at end of note).
Financing & M/A Summary - Last Three Months
450.0
400.0
350.0
300.0
250.0 Feb-10
(US$m)
Jan-10
Dec-09
200.0 Nov-09
150.0
100.0
50.0
0.0
Phoenix New Media
Movik Networks
Mixer Labs
PowerReviews
Millennial Media
Mochi Media
LiveMocha
Stylehive
ThisNext
StudioNow
Motley Fool
Avvasi
AdMarvel
AppNexus
XIHA
Nival Network
Sway
Stylefeeder
Decision Maker
Living Social
Playfire
PlayFish
Zynga
SMSGupShup
Evernote
SonicMule
Guvera
MobGold
Gowalla
wooga
Eventbrite
Bizo
Eyeka
Twilio
Beezag
SocialMedia
GlobalMotion
SCVNGR
Jajah
RockYou
Ku6
Youku
Groupon
Paymo
Yelp
Visible
Lala
Shanghai Dacheng
Yodle
Aggregate
CubeTree
kaChing
ChaCha
Pageonce
Curse
Apisphere
Blekko
HootSuite
Rekoo
Joonto
Spiceworks
SeekingAlpha
JanRain
Article One
OneForty
Center'd
Sonico
Friendster
Gizmoz
5 Minutes
StockTwits
Flurry
Blippy
Graphic.ly
PBworks
SocialGO
Scoopler
ReachLocal
Sezmi
Blue Kai
Gogii
Gaikai
Rocket Fuel
Jelli
Jinni
Playdom
Zoosk
Altruik
NuConomy
Cloud Engines
Grapeshot
Appolicious
Adfonic
Quantcast
Echo Nest
BuyWithMe
Placecast
AlikeList
Smaato
Tonchidot
Joost
Credit Karma
Whiskey Media
SimpleGeo
Lithium
Qunar.com
Alice.com
Prosper.com
Genius.com
Reframe It
Imeem
Drimmi
6 Waves
WePay
gWallet
Figure 3. Capital Market Activity, Last Three Months

Page 5
Gaming and Social Networks – a symbiotic relationship: Gaming, the sector that has taken a clear lead in terms of
financing attention, is matched by Social Networks with 12 transactions each in the past quarter. Analytics is in second
place with nine financings, along with Advertising. Social Commerce has received a good deal of recent attention,
garnering six financings in the past quarter (Figure 4). The $400 million acquisition of Playfish skews the Gaming
segment to the highest total financing figure.
Capital Market Activity by Sector - Last Three Months
900.0
800.0
700.0
600.0
500.0
(US$m)
400.0
300.0
200.0
100.0
838.0 210.7 126.8 148.5 109.5 79.7 43.7 54.0 52.6 51.2 41.8 41.3 41.1 25.0 18.0 16.0 15.0 12.7 12.5 12.5 10.0 10.0 8.0 8.0 6.0 5.3
0.0
Social Commerce
Mobile Payment
Gaming
Documents
Travel
Mobile
Media
Enterprise
Online Learning
Collaboration
Microblog
Music
Financial Services
SMS/Voice
Mobile Ad
Location-based
Infrastructure
Classified
Widget
Social Networks
Virtual Goods
Advertising
Video
Crowdsourced
Aggregation
Analytics
Content
SNS
# companies
12 2 9 5 12 9 6 2 6 3 5 5 5 1 4 1 1 4 1 4 1 3 1 1 1 2
Figure 4. Capital Market Activity, by Sector, Last Three Months

Page 6
Capital Markets Activity (Price Performance)

Web 2.0 index continues to outpace NASDAQ recovery: Our Web 2.0 index (market-cap weighted) has positively
diverged from the broader tech market (represented by the Nasdaq Composite Index) since Q1/09 (Figure 5).
Web 2.0 Index Price Performance

300
250
200
150
100
50
0
2/2/2009
2/16/2009
3/2/2009
3/16/2009
3/30/2009
4/13/2009
4/27/2009
5/11/2009
5/25/2009
6/8/2009
6/22/2009
7/6/2009
7/20/2009
8/3/2009
8/17/2009
8/31/2009
9/14/2009
9/28/2009
10/12/2009
10/26/2009
11/9/2009
11/23/2009
12/7/2009
12/21/2009
1/4/2010
1/18/2010
Index: Web 2.0 (Market Cap) ^COMP - Share Pricing
Figure 5. Web 2.0 Price Performance

Source. Capital IQ
Page 7
Decliners rule: Thirty-eight companies in our universe had negative stock price performances (averaging -4.9%) over
the past week (for stocks with prices greater than $1) (Figure 6), while 12 companies showed positive 1-week returns
(averaging +36.1% - or 9.2% excluding one thinly traded outlier – DigitalTown).
1 Week P rice P erformance

DigitalTow n, Inc. 331.0%
V elti Plc 45.3%
TheS treet.com, Inc. 22.6%
Gravity Co., Ltd 14.4%
A s knet A G 4.7%
Ngi Group Inc. 4.1%
Lingo Media Corporation 3. 8%
Mix i, Inc. 3. 7%
Frogs ter Interactive Pictures A G 1.0%
Perf ect World Co., Ltd. 1.0%
Modern Times Group Mtg A B 0.7%
PNI Digital Media Inc. 0.6%
Cy berplex Inc. 0.0%
IA C/InterA ctiveCorp. 0.0%
G iant Interactive Group, Inc. -0.3%
Changy ou.com Limited -0.3%
V alueClick Inc. -0.4%
A Q Interactive, Inc. -0.5%
Open Tex t Corp. -0.6%
Quepas a Corp. -1.7%
S K Communications Co., Ltd. -1.7%
NetDragon WebS oft, Inc. -1.7%
DA DA S pA -1.9%
XING A G -2.0%
G ameOn Co Ltd. -2.2%
S park Netw orks , Inc. -2.4%
Y nk K orea Inc. -2.4%
Neteas e.com Inc. -2.6%
HanbitS oft, Inc. -2.8%
S hutterf ly , Inc. -3.4%
The9 Limited -3.6%
Openw ave S y s tems Inc. -3.9%
My riad Group A G -4.1%
CDC Corp. -4.1%
GigaMedia Ltd. -4.2%
G ungHo Online Entertainment, Inc. -4.2%
S handa Interactive Entertainment Ltd. -4.8%
G amania Digital Entertainment Co., -5. 1%
United Online Inc. -5. 4%
Tencent Holdings Ltd. -5. 5%
K ings of t Co. Ltd. -6.1%
Tree.Com, Inc. -6.3%
Northgate Technologies Limited -6.9%
Webz en Inc. -7.1%
Gree, Inc. -8.6%
A ctoz S of t Co., Ltd. -10.3%
S ohu.com Inc. -10.7%
NEOWIZ G ames Corporation -11.1%
Eolith Co. Ltd. -13.0%
Chines e G amer International -15.5%
Y D Online Corp. -17.8%
-0. 5 0 0. 5 1 1.5 2 2.5 3 3.5
Figure 6. 1-Week Price Performance

Source. Capital IQ
Page 8
Public Company Industry News (Partnerships, Financial Results, New Products)

K ey Developments
C ompany Headline Notes
TheS treet.com, Inc. (Nas daqG M: TS C M) T heS treet. C om, Inc. R eports Unaudited T heS treet. com, Inc. reported unaudited cons olidated earnings res ults for the third qua rter and nine months ended
C ons olidated E arnings R es ults for the T hird S eptember 30, 2009. T he company recorded revenue of $15. 2 million in the third quarter of 2009, a reduction of 11% as
Q uarter a nd Nine Months E nded S eptember compared to a res tated $17. 0 million in the third quarter of 2008. T he compa ny ha d a net los s attributable to common
30, 2009; P rovides R evenue G uidance for the s tockholders of $1. 5 million in the third qua rter of 2009, a s compared to a res tated net los s of $0. 7 million in the prior year
F ourth Q ua rter E nded December 31, 2009 period. T he company reported bas ic and diluted net los s per s ha re a ttributable to common s tockholders of $0. 05 a nd $0. 05
res pectively, in the third quarter of 2009, as compared with a res tated $0. 03 a nd $0. 03, res pectively, in the prior year
period. Adjus ted E B IT DA for the third quarter of 2009 was $1. 7 million as compa red to a res ta ted $1. 5 million for the prior
year period. E B IT DA was $0. 3 million. O pera ting los s was $1. 7 million.
G iant Interactive G roup, Inc. G iant Interactive G roup, Inc. to Add G ia nt Intera ctive G roup, Inc. is pla nning to a dd inves tments in its s outhwes t R & D center to s hore up 3D game development.
(NYS E : G A) Inves tments in S outhwes t R & D C enter T he compa ny is dis cus s ing with the dis trict government of C hengdu city, where the R & D center is hous ed, to expand the
center to equal s ize of its Zhuhai R & D center in G ua ngdong province, S outh C hina. G ia nt will s etup four to five R & D ga me
teams like the one which recently la unched its s ta r ga me Longhun to pillar up the company’s 3D R & D. Its current product
lineup is domina ted by 2D ga mes s o far. B es ides , Long dis clos ed that G iant has s pent over C NY 10 million on Longhun,
the firs t 3D game created by the S outhwes t R & D center.
S NAP Interactive, Inc. (OTC B B : S TVI) S NAP Interactive, Inc. R eports R evenue S NAP Interactive, Inc. announced that it has an experienced a s ignificant increa s e in gros s receipts s ince tra ns itioning to a
R es ults for the Month of December 2009 premium s ubs cription model on its 'Are Y ou Interes ted? ' brand in late 2009. F or the month of December 2009, revenue run
rate bas ed on gros s receipts has increa s ed to more than $5. 6 million on an annua l bas is . T his repres ents an increas e of
more tha n 79% from 2009 revenue run ra te of s lightly more tha n $3 million as of S eptember 30, 2009. T hes e s a les include
gros s revenue from the s a le of multi month s ubs criptions as well a s advertis ing revenue. However, from a G AAP
accounting pers pective revenues from multi month s ubs criptions were recognized over the length of the s ubs cription ra ther
than when purchas ed.
G F Inves tments Inc .; S NM G lobal S NM G lobal Holdings (O T C P K : S NMN) S NM G lobal Holdings (OT C P K : S NMN) acquired G F Inves tments Inc. in s tock on J anuary 27, 2010.
Holdings (OTC P K : S NMN) acquired G F Inves tments Inc.
Quepas a C orp. (OTC B B : QP S A) Q uepas a C orp. La unches O nline C ommunity Q uepas a C orp. a nnounced the launch of a new feature on the webs ite: a n online community dedicated to Haitian relief. T he
for Haitia n Dis as ter R elief la unch of this online initiative coincides with Haitia n relief efforts undertaken by Dr. R obert R ey, who mainta ins an online
health and beauty community compris ing over 40, 000 members on Q uepas a . com.
Northgate Technologies L imited Northgate T echnologies Limited, B oard Northga te T echnologies Limited, B oard Meeting, J an 29, 2010 Agenda: T o cons ider unaudited fina ncia l res ults for the third
(B S E : 590057) Meeting, J a n 29, 2010 quarter a nd nine months ended December 31, 2009.
E olith C o. L td. (K OS E : A041060) E olith C o. Ltd. announced it expects to receive E olith C o. Ltd. (K O S E : A041060) a nnounced a priva te placement of unregis tered/uns ecured private bonds for gros s
K R W 2. 5 billion in funding. proceeds of K R W 2. 5 billion on J a nuary 29, 2010. T he bonds s hall carry a 6% coupon, 10% yield to ma turity, and s ha ll
ma ture on F ebruary 1, 2013. T he company s hall a ls o is s ue wa rrants in the tra ns action. T he wa rrants s ha ll be convertible
into equity s hares of the company a t K R W 750 per s hare till J anuary 1, 2013. T he s ubs cription period for the wa rrants is
F ebrua ry 1, 2011 to J anuary 1, 2013.
ValueC lic k Inc . (Nas daqG S : VC L K ) V alueC lick Mulls Acquis itions V a lueC lick Inc reported preliminary revenue of $130. 2 million for the fourth quarter. T he company pla ns to look at
acquis ition opportunities . T he compa ny s tated that it intends concentra te on its online ma rketing s ervices and technology
bus ines s es through orga nic initiatives a nd acquis itions .
ValueC lic k Inc . (Nas daqG S : VC L K ); V alueC lick Inc. (Nas da qG S : V C L K ) s old W eb V a lueC lick Inc. (Nas daqG S : V C LK ) s old W eb C lients L LC for $45 million in promis s ory note on F ebruary 1, 2010. Under the
Web C lients L L C C lients LL C for $45 million. terms of the trans action, total cons ideration will be paid entirely in the form of a promis s ory note. S uch promis s ory note
s ha ll provide for principal payments to be ma de ba s ed on a 10 yea r s tra ight-line a mortiza tion s chedule for not greater than
5 years a nd will be due a nd pa yable in full a t the end of s uch 5 yea r period a nd will be s ecured by s ubs tantia lly a ll as s ets of
the undis clos ed buyer, including, without limitation the equity s ecurities of W eb C lients .
S ohu.com Inc . (Nas daqG S : S OHU) S ohu. C om Inc. R eports E arnings R es ults for S ohu. com Inc. reported ea rnings res ults for the fourth quarter a nd full year ended December 31, 2009. F or the quarter, the
the F ourth Quarter a nd F ull Y ea r E nded company reported tota l revenue of $135. 8 million, in line with guida nce and trans lating into growth of 12% yea r-over-year.
December 31, 2009; P rovides E a rnings B efore deducting the s ha res of net income perta ining to the non-controlling interes t in C hangyou, non-G AAP net income for
G uidance for the F irs t Q uarter of 2010 the fourth quarter wa s $50. 3 million, in line with guidance. After deducting the s hare of net income pertaining to the non-
controlling Interes t in C hangyou, on a fully diluted bas is , non-G AAP net income was $35. 8 million, or $0. 92 per fully diluted
s ha re, in line with guidance.
T he compa ny provided ea rnings guidance for the firs t qua rter of 2010. F or the quarter, the company expects tota l revenues
to be between $123 million to $128 million. B efore deducting the s hare of non-G AAP net income pertaining to the non-
controlling interes t in C hangyou, the compa ny es tima te pro forma non-G AAP net income to be between $45. 0 [ph] million to
$47. 5 million as compa red to $50. 3 million for the fourth quarter of 2009. After deducting the s ha re of non-G AAP net
income perta ining to the non-controlling interes t in C hangyou, the compa ny es tima tes
non-G AAP net income for the firs t quarter of 2010 to be between $30 million to $33 million and non-G AAP fully
diluted earnings per s hare for the firs t quarter of 2010 to be between $0. 78 a nd $0. 83.
C hangyou.c om L imited C hangyou. C om Limited R eports E arnings C ha ngyou. com Limited reported earnings res ults for the fourth qua rter and full yea r ended December 31, 2009. F or the
(Nas daqG S : C YOU) R es ults for the F ourth Q uarter and F ull Y ea r quarter, the company reported tota l revenues of $70. 7 million, up 3% quarter-over-qua rter and in line with compa ny
E nded December 31, 2009; P rovides E arnings guidance. Non-G AAP net profit for the quarter als o grew 2% qua rter-over-quarter to a record $42. 2 million, in line with
G uidance for the F irs t Q uarter of 2010 company guidance. Non-G AAP operating profit increa s ed 4% s equentially and 36% year-over-year to $47. 6 million. A Non-
G AAP fully diluted ea rnings per ADS was $0. 79, up from $0. 77 in the previous qua rter and $0. 64 in the s ame qua rter la s t
year. O pera ting cas h flow for the quarter was a net inflow of $46. 2 million.
F or the firs t quarter of 2010, the compa ny expects total revenues to be between $70 million and $73 million, non-G AAP net
income to be between $41 million a nd $42. 5 million, non-G AAP fully diluted earnings per ADS to be between $0. 77 and
$0. 80, as s uming no new grants of s hare-bas ed a wards , the company es timates s hare-ba s ed compens a tion expens e to be
between $3. 0 million to $3. 5 million, reducing its fully diluted earnings per ADS under US G AAP by $0. 06 to $0. 07.
Figure 7. Key Developments

Source. Capital IQ
Page 9
Valuation
Gaming companies lead market-cap charts: Twelve companies in our Web 2.0 universe top US$1 billion in market
capitalization (Figure 8). Fifty-six of the 89 companies have market caps under US$100 million, with 35 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$33.2 billion.
Market C ap ($US mm)

Tencent Holdings Ltd. 33166.7
Neteas e.com Inc. 4269.8
Modern Times G roup Mtg A B 3198.6
S handa Interactive Entertainment 3104.5
IA C/InterA ctiv eCorp. 2677.7
G ree, Inc. 2592.7
Open Tex t Corp. 2254.1
S ohu.com Inc. 1931.3
Perf ect World Co., Ltd. 1900.7
Changy ou.com Limited 1796.9
G iant Interactive G roup, Inc. 1662.6
Mix i, Inc. 1084.1
K ings of t Co. Ltd. 847.2
Chines e G amer International 842.8
V alueClick Inc. 819.0
NEOWIZ G ames Corporation 574.2
United Online Inc. 547.3
S K Communic ations Co., Ltd. 543.6
S hutterf ly , Inc. 406.4
NetDragon WebS of t, Inc. 279.4
G ungHo Online Entertainment, Inc. 263.1
G amania Digital Entertainment Co., 253.1
CDC Corp. 249.1
XING A G 220.1
My riad G roup A G 201.3
Openw ave S y s tems Inc. 184.6
OA O R B C Inf ormation S y s tems 180.3
The9 Limited 175.5
V elti Plc 174.6
G igaMedia Ltd. 150.5
Webz en Inc. 136.6
DA DA S pA 119.0
A ctoz S of t Co., Ltd. 114.7
Fluid Mus ic Canada, Inc. 96.1
TheS treet.com, Inc. 94.3
Tree.Com, Inc. 79.5
NeuL ion Incorporated 77.6
HanbitS of t, Inc. 76.6
GameOn Co Ltd. 75.4
Y D Online Corp. 72.6
Frogs ter Interactive Pictures A G 70.8
Cy berplex Inc. 69.1
S park Netw orks , Inc. 59.3
PNI Digital Media Inc. 57.2
Gravity Co., Ltd 53.1
A Q Interactive, Inc. 51.7
G eoS entric Oy j 51.7
DXN Holdings B hd 45.6
Eolith Co. Ltd. 45.5
NeXplore Corporation 39.0
Ngi G roup Inc. 38.2
Quepas a Corp. 37.6
DigitalTow n, Inc. 34.3
Multiplied Media Corporation 28.5
A s knet A G 24.3
S ocialw is e, Inc. 21.9
En2G o International, Inc. 21.4
Wiz z ard S of tw are Corporation 19.2
Northgate Technologies Limited 18.5
LookS mart, Ltd. 16.5
A c celeriz e New Media, Inc. 16.1
Dolphin Digital Media, Inc. 14.8
MOK O.mobi Limited 14.1
Unilava Corporation 14.0
Lingo Media Corporation 13.2
Y nk K orea Inc. 13.2
J umbuck Entertainment Limited 12.9
V OIS , Inc. 10.9
R eal V alue Es tates , Inc. 9.6
is eemedia Inc. 8.9
S NA P Interactiv e, Inc. 8.1
B right Things plc 7.9
S ahara Media Holdings , Inc. 7.8
S pectrumDNA , Inc. 7.3
Magnitude Inf ormation S y s tems Inc. 6.2
Oriented Media G roup B erhad 5.3
B roadWebA s ia Inc. 5.1
Worlds .com Inc. 4.8
B etaw ave Corporation 4.1
DigitalPos t Interactive, Inc. 3.9
UOMO Media, Inc 3.5
CornerWorld Corporation 2.9
Unis erve Communications Corp. 1.9
B igs tring Corp. 1.4
B ey ond Commerce, Inc. 1.2
The Parent Company 0.5
A s s oc iated Media Holdings Inc. 0.4
S ocial Media V entures Inc. 0.0
InternetA rray , Inc. 0.0
0 1,000 2,000 3,000 4,000 5,000 6,000
Figure 8. Market Cap Ranking

Source. Capital IQ
0. 0
5. 0
10. 0
15. 0
20. 0
25. 0
30. 0
35. 0
40. 0
45. 0
(x)
G ameO n C o L td.
O AO R B C Information S y s tems
# Companies
revenue).
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
As k net AG
Source. Capital IQ
Source. Capital IQ
1
HLSE B etawave C orporation
12.0
T he P arent C ompany
3
SEHK
9.9
T ree. C om, Inc.
2
ASX P erfec t World C o. , Ltd.
9.2
J umbuc k E ntertainment L imited
6
OTCPK
7.0
Figure 9. TEV/Revenue Ranking
Northgate T ec hnologies L imited
2
GTSM U nis erve C ommunications C orp.
AQ Interactive, Inc.
TSX
6.2 6.2
O penwave S y s tems Inc . have multiples under 1.5x.
OTCBB C y berplex Inc.
6.0
G igaMedia L td.
3 20 5
TSXV
T heS treet. com, Inc .
5
TSE Ac toz S oft C o. , L td.
C DC C orp.
3
XTRA
DADA S pA
0.0 0.0 0.10.2 0.2 0.2 0.3 0.4 0.4 0.4 0.4 0.4 0.4 0.5 0.5 0.6 0.7 0.7
1
SWX
4.2 4.2 3.4 3.1

DXN Holdings B hd
2
IAC /InterAc tiveC orp.
Figures 10 & 11. TEV/Revenue Ranking (Exchange, Country)

AMEX
U nited O nline Inc .
KOSE B ey ond C ommerce, Inc.
NasdaqGS Y nk K orea Inc .
H anbitS oft, Inc .
8 14 1
OSE
2.6 2.5 2.3 1.9

InternetArray , Inc .
1
OM S park Network s , Inc.
1.9
V alueC lic k Inc.
Average TEV/LTM Revenue - By Exchange
2
KLSE
1.8
S hutterfly, Inc .
1
CM Y D O nline C orp.
0.7
0.8 0.8 0.8 1.0 1.0 1.1 1.1 1.2 1.2 1.3 1.3 1.3
C ornerWorld C orporation
1
BSE
NetDragon WebS oft, Inc.
4
NasdaqGM G amania Digital E ntertainment
0.4 0.4
Modern T imes G roup Mtg AB
1
RTS
0.0
G ungHo O nline E ntertainment,
O riented Media G roup B erhad
S NAP Interac tive, Inc .
1.4 1.5 1.9 1.9 1.9 1.9 2.0

V elti P lc
P NI Digital Media Inc .
(x)
T E V/L T M R evenue (x)
NeuL ion Inc orporated

NE O WIZ G ames C orporation
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
XING AG
# Companies
S K C ommunic ations C o. , L td.
1
Finland Unilava C orporation
12.0
S ohu. com Inc.
2
Australia O pen T ex t C orp.
9.2
2.3 2.5 2.6 2.7 2.7 2.72.8 2.9
Myriad G roup AG
China
10
6.5
Webz en Inc .
3.1 3.1
Wiz z ard S oftware C orporation
1
Hong Kong
5.8
U O MO Media, Inc
United S oc ial Media V entures Inc .
4.0 4.1 4.6
35
4.8
States is eemedia Inc.
Ac celeriz e New Media, Inc .
3
Taiwan
DigitalP os t Interac tive, Inc.
4.9 5.1 5.1
K ings oft C o. L td.
6
Japan
4.3 3.7
5.5 5.8
C hangy ou. com L imited

Mix i, Inc.
3
Germany
3.4
F rogs ter Interactive P ictures AG
7.0 7.3 7.5
E olith C o. L td.
9
Canada
3.3
G ree, Inc.
L ingo Media C orporation
9.3 9.4
1
Switzerland
C hines e G amer International
10.9
South G eoS entric O y j
9
12.0
3.1 2.5
Korea As s oc iated Media Holdings Inc.
13.2
1
F luid Mus ic C anada, Inc.
15.7
Sweden
1.9
MO K O . mobi L imited
18.0
Average TEV/LTM Revenue - By Country
2
Malaysia T enc ent Holdings L td.
22.9
1.8
B right T hings plc
35.6
1
Italy B igs tring C orp.
38.3
1
India
0.7 0.4
Page 10
companies (35), trading at an average of 4.8x revenue (Figure 11). Nine of the companies are Canadian (average 3.3x
or domiciled. Figure 10 shows the average TEV/Revenue multiples by stock exchange. The OTCBB has the largest
TEV/Revenue (LTM) by country/exchange: We have also calculated multiples based on where the companies are listed
(OTCBB:BSGC) at 38.3x. The median is 1.9x. Note that we exclude multiples greater than 50x. Twenty-three companies
week) (Figure 9). Two companies trade above 25x revenue – Bright Things plc (AIM:BGT) at 35.6x and Bigstring Corp.
TEV/Revenue (LTM) averages 4.5x: The overall average TEV/Revenue (LTM) multiple for our group is 4.5 (vs. 5.1x last
number of companies (20), trading at an average multiple of 6.0x. On a geographic basis, the United States has the most
1
Russia
0.0
Page 11
TEV/EBITDA (LTM) averages 11.7x: The average multiple for the 40 companies with positive EBITDA (and multiples
under 100x) is 11.7x LTM EBITDA (vs. 12.4x last week), led by Tencent Holdings Ltd. (SEHK:700) at 44.8x (Figure 12).
Fifteen companies have EBITDA multiples under 7x. The median multiple is 9.5x.
T E V/L T M E B IT DA (x)
50. 0
44.8
45. 0 43. 2
41. 3
40. 0
35. 0
30. 0 28. 4
25. 0
21. 2
18.8
20. 0
15.8 15. 8
13. 4 13. 8
15. 0 12. 3 12. 6 12. 8 12. 9
10. 9 10. 9 11.0
9. 3 9. 4 9. 6 9. 6 9. 9
10. 0 8. 1 8.5 9. 0
6. 1 6. 4
5.0 5. 4 5. 5 5. 5
3. 8 3. 9 4. 0 4. 6
5. 0 2. 7
0. 1 0. 3 0.6 0. 8
0. 0
J umbuc k E ntertainment Limited
G ungHo O nline E ntertainment, Inc .
G amania Digital E ntertainment C o. , Ltd.
P NI Digital Media Inc .
Unis erve C ommunic ations C orp.

O AO R B C Information S y s tems
DXN Holdings B hd
C hangy ou. com L imited

G ameO n C o L td.
T ree. C om, Inc .
C DC C orp.
S K C ommunic ations C o., L td.

U nited O nline Inc .
O pen T ex t C orp.
S NAP Interac tive, Inc .

C y berplex Inc .
NetDragon WebS oft, Inc .
V alueC lic k Inc .
S park Network s , Inc .
Y D O nline C orp.
S ohu. com Inc .
AQ Interac tive, Inc .
IAC /InterAc tiveC orp.
E olith C o. L td.
G ree, Inc.
Mix i, Inc .
T encent Holdings L td.

XING AG
P erfec t World C o. , L td.
Y nk K orea Inc.
O penwave S ys tems Inc.
Webz en Inc.
S hutterfly , Inc.
K ings oft C o. L td.

V elti P lc
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 (20), trading at an average multiple of 8.2x. On a geographic basis, the
United States has the most companies (35), trading at an average of 8.4x EBITDA (Figure 14). Nine of the companies are
Canadian (average 17.8x EBITDA).
Average TEV/LTM EBITDA - By Country

Average TEV/LTM EBITDA - By Exchange
20.0
30.0 28.1
18.0 17.8
25.0 16.0
16.2
20.0 14.0
21.0
12.0 13.9 13.4 13.3
16.2
(x)
15.0
(x)
13.9 13.4 10.0 10.7 9.9

13.4 11.3 9.4
10.0 9.9 8.5 8.0 8.4
8.2 7.5
7.4 5.5 5.5 5.4 6.0 7.5
5.0 3.9 5.4
0.8 4.0
0.0 0.3 2.0 0.3
OTCPK
OTCBB
GTSM
NasdaqGM
SEHK
KOSE
TSE
OSE
NasdaqGS
RTS
OM
CM
XTRA
KLSE
AMEX
TSX
TSXV
ASX
0.0 0.8
Germany
Canada
China
Japan
Hong
United
Malaysia
Russia
Italy
South
Korea
Kong
States
Taiwan
Australia
Sweden
# Companies 5 3 8 2 1 6 5 3 1 20 2 14 2 4 1 3 2 1
# Companies 9 9 3 1 10 6 3 1 35 2 1 2 1
Figures 13 & 14. TEV/EBITDA Ranking (Exchange, Country)

Source. Capital IQ
Page 12
P/E (LTM) averages 22.7x: The average multiple for the 32 companies with positive earnings (and multiples under 100x)
is 22.7x LTM EPS (vs. 22.8x last week), led by HanbitSoft, Inc. (KOSE:A047080) with a 72.7x multiple (Figure 15). Eleven
companies have P/E multiples under 10x. The median is 16.4x.
P /E L T M (x)
80.0
71.8 72.7
70.0
60.0 57. 4
55. 5
49.2 50. 6
50.0 45.0
40.0
31. 7
28.4 29. 5
30.0 25. 4 26.2
19.5 19. 6
20.0 17.4 18.6
15. 5
13. 6
11. 4 11.8 12.1
10.0 7. 3 7.7
5.5 5.9 6. 0
1.8 2.0 2. 3 2. 3 3.5
0. 0
0.0

J umbuck E ntertainment Limited
G amania Digital E ntertainment C o., Ltd.
G ungHo O nline E ntertainment, Inc.

DXN Holdings B hd
C hangy ou. com Limited

G iant Interactive G roup, Inc.
G ameO n C o Ltd.

G ravity C o., Ltd
S handa Interactive E ntertainment Ltd.
Neteas e.com Inc.
S NAP Interactive, Inc.
O pen T ex t C orp.
G igaMedia Ltd.
C y berplex Inc.
Y D O nline C orp.
IAC /InterActiveC orp.
S ohu.com Inc.
NetDragon WebS oft, Inc.
S park Network s , Inc.
G ree, Inc.
Mix i, Inc.
T encent Holdings Ltd.

XING AG
P erfect World C o., Ltd.
Webz en Inc.
HanbitS oft, Inc.

V elti P lc
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 (20), trading at an average multiple of 17.5x. On a geographic basis, the United States has
the most companies (35), trading at an average of 18.5x earnings (Figure 17). Nine of the companies are Canadian
(average 27.6x EPS).
Average P/E - By Exchange Average P/E - By Country

40.0
60.0 36.4
50.6 35.0
50.0
30.0
32.6
40.0 39.2 29.5 27.6
25.0 27.3
31.6 29.8
(x)
30.0 29.5
(x)
27.3 25.8 20.0

19.2
20.0 19.6 18.6 17.5 17.4 15.0 18.5 17.4
11.3 13.6
10.0 6.0 10.0 12.1
3.5
0.0 1.8 0.0 5.0 3.5
OTCPK
OTCBB
GTSM
NasdaqGM
OSE
KOSE
TSE
SEHK
NasdaqGS
OM
XTRA
KLSE
AMEX
TSX
NYSE
ASX
0.0 2.0
Germany
Israel
Japan
Canada
Malaysia
United
China
Hong
South
Korea
Kong
States
Taiwan
Australia
Sweden
# Companies 1 8 5 3 3 2 2 2 6 20 1 14 3 2 1 4
# Companies 6 9 3 9 2 3 35 1 10 1 2 1
Figures 16 & 17. P/E Ranking (Exchange, Country)

Source. Capital IQ
Page 13
Upcoming Events
E arnings C alendar
C ompany Date Time Quarter C onf C all Details
Open Text Corp. (NasdaqGS:OTEX) 3-Feb-10 5:00 p.m. EDT Q2/10 800-814-4859
Shutterfly, Inc. (NasdaqGS:SFLY) 4-Feb-10 5:00 p.m. EDT Q4/09 816-581-1703
Openwave Systems Inc. (NasdaqGS:OPWV) 4-Feb-10 5:00 p.m. EDT Q2/10 877-941-1427
Tree.Com, Inc. (NasdaqGM:TREE) 5-Feb-10 11:00 a.m. EDT Q4/09 800-967-7184
IAC/InterActiveCorp. (NasdaqGS:IACI) 9-Feb-10 11:00 a.m. EDT Q4/09 http://www.iac.com/Investors
PNI Digital Media Inc. (TSXV:PN) 11-Feb-10 4:30 p.m. EDT Q1/10 888-300-8196
United Online Inc. (NasdaqGS:UNTD) 17-Feb-10 2:00 p.m. EDT Q4/09 800-723-6575
Figure 18. Earnings Calendar

Source. Capital IQ
Page 14

P ric 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
Accelerize New Media, Inc. US D AC L Z OT C B B 16. 1 0. 56 1. 8% -13. 8% 1.8% 0. 0% 60. 0% -30. 0%

Actoz S oft C o. , L td. KR W A052790 K OS E 114.7 14, 800 -10. 3% -13. 2% 3.5% -37.4% 26. 0% -58. 9%
AQ Interactive, Inc. JPY 3838 TS E 51. 7 87,100. 00 -0.5% 27. 5% 86. 1% 49.7% 168.0% -12. 5%
As knet AG E UR XT R A:A5A XT R A 24. 3 3. 35 4. 7% 10. 6% 2.8% 26.4% -14. 8% -18. 7%
As s ociated Media Holdings Inc. US D AS MH OT C P K 0.4 0. 01 -79. 2% -79. 6% 11. 1% -28.6% 100.0% -98. 7%
B etawave C orporation US D B W AV OT C B B 4.1 0. 14 55.6% 7.7% 250.0% 100. 0% -30. 0% -36. 4%
B eyond C ommerce, Inc. US D B Y OC OT C B B 1.2 0. 02 -16. 7% -20. 0% -73. 3% -94.4% -97. 5% -98. 9%
B igs tring C orp. US D BS GC OT C B B 1.4 0. 02 -2.2% -12. 4% -35. 6% -18.9% 28. 8% -61. 6%
B right T hings plc GBP AIM: B G T AIM 7.9 0. 02 -10. 3% 17. 3% 10. 9% -1. 6% -18. 4% -39. 0%
B roadW ebAs ia Inc. US D BWBA OT C P K 5.1 0. 06 -25. 0% 50. 0% 100.0% -73.9% -96. 0% -96. 0%
C DC C orp. US D C HIN.A Nas daqG S 249.1 2. 35 -4.1% 5.4% -2.9% -29.4% 173.3% -40. 1%
C hangyou.com L imited US D C Y OU Nas daqG S 1,796. 9 32. 67 -0.3% -1.6% 6.4% -18.3% NM -32. 5%
C hines e G amer International TWD G T S M: 3083 GTS M 842.8 319. 00 -15. 5% -24. 8% -25. 4% -20.6% 186.1% -38. 5%
C ornerW orld C orporation US D CWR L OT C B B 2.9 0. 03 0. 0% 0.0% -50. 0% -50.0% -88. 0% -92. 7%
C yberplex Inc. C AD T S X:C X TS X 69. 1 1. 04 0. 0% -9.6% -24. 1% -38.8% 197.1% -47. 7%
DADA S pA E UR C M: DA CM 119.0 5. 10 -1.9% -13. 6% -27. 1% -16.3% -16. 4% -37. 7%
DigitalP os t Interactive, Inc. US D DG L P OT C B B 3.9 0. 05 12.5% 0.0% -10. 0% 0. 0% 350.0% -54. 5%
DigitalT own, Inc. US D DG T W OT C B B 34. 3 1. 25 331. 0% 4.2% 23. 8% -16.7% -16. 7% -64. 3%
Dolphin Digital Media, Inc. US D DP DM OT C B B 14. 8 0. 26 4. 0% 36. 8% -33. 3% -35.0% -56. 7% -65. 8%
DXN Holdings B hd MY R DXN K LS E 45. 6 0. 68 0. 7% 23. 6% 4.6% 70.0% 91. 5% -9.3%
E n2G o International, Inc. US D E TGI OT C B B 21. 4 0. 90 76.5% 38. 5% 50. 0% -40.0% -47. 1% -82. 0%
E olith C o. L td. KR W A041060 K OS E 45. 5 670. 00 -13. 0% 12. 6% 25. 2% -19.8% 26. 4% -42. 2%
F luid Mus ic C anada, Inc. C AD T S X:F MN TS X 96. 1 1. 58 1. 9% -9.2% -16. 4% 75.6% 182.1% -26. 5%
F rogs ter Interactive P ictures AG E UR FR G XT R A 70. 8 19. 20 1. 0% 9.7% 2.0% 43.4% 296.6% -10. 7%
G amania Digital E ntertainment C o. , L td. TWD 6180 GTS M 253.1 53 -5.1% -4.0% 17. 4% -8. 7% 133.3% -23. 7%
G ameO n C o L td. JPY 3812 TS E 75. 4 71400. 00 -2.2% -2.9% -16. 2% -31.7% -42. 0% -46. 3%
G eoS entric O yj E UR G E O 1V HL S E 51. 7 0. 04 -20. 0% 0.0% -20. 0% 0. 0% 0.0% -33. 3%
G iant Interactive G roup, Inc. US D GA NY S E 1,662. 6 7. 33 -0.3% 4.4% 1.2% -11.5% 19. 4% -23. 4%
G igaMedia L td. US D G IG M Nas daqG S 150.5 2. 76 -4.2% -15. 6% -26. 6% -47.0% -61. 6% -64. 3%
G ravity C o., L td US D GR VY Nas daqG M 53. 1 2 14.4% 17. 2% 23. 2% 13.7% 166.0% -27. 4%
G ree, Inc. JPY T S E :3632 TS E 2,592. 7 5, 290 -8.6% -7.5% 3.9% 33.4% 87. 3% -12. 4%
G ungHo O nline E ntertainment, Inc. JPY 3765 OS E 263.1 210, 200 -4.2% -16. 6% 0.1% 3. 4% 104.1% -24. 9%
HanbitS oft, Inc. KR W A047080 K OS E 76. 6 3975. 00 -2.8% 3.8% 13. 9% -11.1% 15. 6% -40. 1%
IAC /InterActiveC orp. US D IAC I Nas daqG S 2,677. 7 20. 29 0. 0% -0.9% 6.5% 11.9% 37. 2% -8.9%
InternetArray, Inc. US D INAR OT C P K 0.0 0. 00 25.0% 0.0% -72. 2% -68.8% -99. 7% -99. 8%
is eemedia Inc. C AD IE E T S XV 8.9 0. 18 -2.8% -12. 5% 16. 7% 150. 0% 118.8% -35. 2%
J umbuck E ntertainment L imited AU D AS X: J MB AS X 12. 9 0. 29 -6.5% -6.5% -14. 7% -23.7% -27. 5% -42. 0%
K ings oft C o. L td. HK D 3888 S E HK 847.2 5. 99 -6.1% -6.7% -18. 1% -28.2% 99. 7% -36. 7%
L ingo Media C orporation C AD T S XV :L M T S XV 13. 2 1. 10 3. 8% 5.8% 17. 0% -6. 8% 4.8% -30. 4%
L ookS mart, L td. US D LOOK Nas daqG M 16. 5 0. 96 -2.8% -5.6% -22. 4% -31.3% -29. 7% -38. 3%
Magnitude Information S ys tems Inc. US D MAG Y OT C B B 6.2 0. 01 -26. 3% -26. 3% 0.0% 115. 4% -53. 3% -64. 1%
Mixi, Inc. JPY 2121 TS E 1,084. 1 644, 000 3. 7% -12. 0% -17. 5% -0. 2% 33. 9% -25. 5%
Modern T imes G roup Mtg AB SEK MT G B OM 3,198. 6 345 0. 7% -3.1% 14. 7% 22.7% 129.8% -6.8%
MO K O . mobi L imited AU D MK B AS X 14. 1 0. 13 8. 3% -13. 3% 44. 4% 100. 0% 225.0% -35. 0%
Multiplied Media C orporation C AD T S XV :MMC T S XV 28. 5 0. 23 -2.2% 32. 4% 32. 4% 181. 3% 221.4% -15. 1%
Myriad G roup AG C HF MY R N SWX 201.3 4. 70 -4.1% -3.1% -1.9% 17.5% -11. 3% -24. 1%
NE O W IZ G ames C orporation KR W A095660 K OS E 574.2 30, 950 -11. 1% -23. 7% -21. 7% -7. 1% 156.8% -31. 1%
NetDragon W ebS oft, Inc. HK D 777 S E HK 279.4 4. 10 -1.7% 1.5% -16. 3% -33.3% 43. 4% -42. 7%
Neteas e.com Inc. US D NT E S Nas daqG S 4,269. 8 32. 99 -2.6% -12. 3% -13. 5% -27.6% 60. 5% -32. 0%
NeuL ion Incorporated C AD T S X:NL N TS X 77. 6 0. 69 6. 2% -1.4% -1.4% -13.8% 38. 0% -46. 9%
NeXplore C orporation US D NXP C OT C P K 39. 0 0. 70 11.1% 25. 0% -6.7% 0. 0% 16. 7% -30. 0%
Ngi G roup Inc. JPY 2497 TS E 38. 2 28, 200 4. 1% 15. 6% 2.4% -11.9% -8.1% -35. 2%
Northgate T echnologies L imited INR 590057 BSE 18. 5 24. 45 -6.9% -9.6% -12. 2% -36.7% -37. 5% -59. 1%
O AO R B C Information S ys tems US D R BCI R TS 180.3 1. 30 -7.1% -7.0% -13. 3% 13.0% 322.8% -23. 5%
O riented Media G roup B erhad MY R O ME DIA K LS E 5.3 0. 14 68.8% 12. 5% 68. 8% 107. 7% -38. 6% -38. 6%
O pen T ext C orp. US D OT E X Nas daqG S 2,254. 1 39. 98 -0.6% -1.6% 9.5% 4. 5% 11. 7% -6.2%
O penwave S ys tems Inc. US D OP W V Nas daqG S 184.6 2. 21 -3.9% -3.1% 6.8% -10.9% 200.7% -29. 4%
T he P arent C ompany US D K IDS . Q OT C P K 0.5 0. 02 171. 4% 533.3% 171.4% 26.7% -36. 7% -52. 5%
P erfect W orld C o., L td. US D PWRD Nas daqG S 1,900. 7 38. 20 1. 0% -3.1% -11. 4% 3. 0% 144.2% -24. 3%
P NI Digital Media Inc. C AD T S XV :P N T S XV 57. 2 1. 76 0. 6% 6.7% 0.6% 17.3% 8.0% -17. 4%
Q uepas a C orp. US D QP S A OT C B B 37. 6 2. 95 -1.7% 40. 5% 123.5% 145. 8% 66. 7% -6.3%
R eal V alue E s tates , Inc. US D R V LU OT C B B 9.6 1. 50 20.0% 36. 4% NM NM NM 0. 0%
S ahara Media Holdings , Inc. US D S HHD OT C B B 7.8 0. 25 0. 0% -37. 5% -51. 0% -91.7% -91. 7% -92. 3%
S handa Interactive E ntertainment L td. US D S NDA Nas daqG S 3,104. 5 46. 16 -4.8% -12. 3% 1.9% -7. 9% 48. 7% -29. 0%
S hutterfly, Inc. US D S F LY Nas daqG S 406.4 15. 83 -3.4% -11. 1% 9.9% 2. 7% 84. 1% -15. 9%
S K C ommunications C o., L td. KR W A066270 K OS E 543.6 14, 750 -1.7% -5.4% 108.9% 55.9% 79. 9% -19. 8%
S NAP Interactive, Inc. US D S TVI OT C B B 8.1 0. 25 150. 0% 66. 7% 257.1% 87.5% -25. 0% -28. 6%
S ocial Media V entures Inc. US D S MV I OT C P K 0.0 0. 00 -34. 5% -10. 0% -64. 0% -98.8% -99. 7% -99. 7%
S ocialwis e, Inc. US D S C LW OT C B B 21. 9 0. 46 0. 0% -9.8% -16. 4% -39.5% 0.0% -54. 9%
S ohu. com Inc. US D S O HU Nas daqG S 1,931. 3 50. 22 -10. 7% -12. 3% -4.9% -20.1% 10. 1% -30. 5%
S park Networks , Inc. US D LOV AME X 59. 3 2. 88 -2.4% -4.0% -0.7% 13.4% 25. 2% -14. 5%
S pectrumDNA, Inc. US D S P XA OT C B B 7.3 0. 15 -25. 0% 0.0% 0.0% -6. 3% 50. 0% -66. 7%
T encent Holdings L td. HK D 700 S E HK 33, 166. 7 141 -5.5% -16. 3% 2.2% 30.1% 207.5% -20. 1%
T he9 L imited US D NC T Y Nas daqG S 175.5 6. 99 -3.6% -3.2% -12. 0% -28.7% -52. 9% -57. 6%
T heS treet.com, Inc. US D TS CM Nas daqG M 94. 3 3. 09 22.6% 28. 8% 22. 6% 50.7% 5.1% -9.4%
T ree.C om, Inc. US D TR E E Nas daqG M 79. 5 7. 29 -6.3% -20. 3% -8.1% -24.7% 86. 4% -44. 2%
Unilava C orporation US D UNL A OT C B B 14. 0 0. 14 -12. 5% -53. 3% NM NM NM -74. 5%
Unis erve C ommunications C orp. C AD T S XV :US S T S XV 1.9 0. 08 -20. 0% 33. 3% 60. 0% 14.3% 0.0% -20. 0%
United O nline Inc. US D UNT D Nas daqG S 547.3 6. 47 -5.4% -10. 0% -16. 9% -28.3% 10. 4% -31. 6%
UO MO Media, Inc US D UO MO OT C B B 3.5 0. 04 -4.8% -25. 9% -48. 1% -71.4% -50. 0% -96. 2%
V alueC lick Inc. US D V C LK Nas daqG S 819.0 9. 56 -0.4% -5.5% -1.7% -9. 9% 36. 6% -31. 4%
V elti P lc GBP VEL AIM 174.6 2. 91 45.3% 45. 3% 67. 6% 71.0% 142.1% -0.5%
V O IS , Inc. US D V O IS OT C B B 10. 9 0. 01 22.2% -8.3% 57. 1% 100. 0% 46. 7% -52. 2%
W ebzen Inc. KR W K O S E : A069080 K OS E 136.6 13, 100 -7.1% 17. 0% 4.0% -5. 8% 92. 4% -36. 7%
W izzard S oftware C orporation US D W ZE AME X 19. 2 0. 36 -2.7% 5.9% -14. 3% -28.0% -48. 6% -54. 4%
W orlds .com Inc. US D W DDD OT C B B 4.8 0. 09 0. 0% 0.0% -10. 0% -25.0% -59. 1% -59. 1%
XING AG E UR O 1B C XT R A 220.1 29. 00 -2.0% -5.8% -14. 1% 3. 8% -6.5% -23. 6%
Y D O nline C orp. KR W A052770 K OS E 72. 6 5, 500 -17. 8% -25. 2% -21. 4% -44.0% -18. 9% -55. 6%
Y nk K orea Inc. KR W A023770 K OS E 13. 2 2, 800 -2.4% -14. 9% -29. 1% -44.0% -28. 8% -67. 8%
High 331. 0% 533.3% 257.1% 181. 3% 350.0% 0. 0%
L ow -79. 2% -79. 6% -73. 3% -98.8% -99. 7% -99. 8%
Average 769.6 6.6% 5.5% 9.5% 2.7% 45.0% -40.6%
Median -2.2% -3.1% 0.0% -7. 9% 22. 3% -35. 2%
Figure 19. Price Performance

Source. Capital IQ
Page 15

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 ector C ountry E xchange Tic ker 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 Ma rketing United S ta tes OT C B B AC L Z 16. 1 5.1x - - - - - -
Actoz S oft C o., Ltd. G a ming S outh K orea K OS E A052790 114. 7 0.6x - 2.7x - 15. 5x - 1.6x
AQ Interactive, Inc. G a ming J a pa n TSE 3838 51. 7 0.4x - 8.1x - - - 0.9x
As knet AG G a ming G ermany XT R A XT R A:A5A 24. 3 0.1x - - - - - -
As s ociated Media Holdings Inc. G a ming United S ta tes OT C P K AS MH 0. 4 13. 2x - - - - - -
B etawa ve C orpora tion Media United S ta tes OT C B B B W AV 4. 1 0.2x - - - - - 2.8x
B eyond C ommerce, Inc. S ocia l Networking United S ta tes OT C B B B Y OC 1. 2 1.0x - - - - - -
B igs tring C orp. Ins ta nt Mes s a ging United S ta tes OT C B B BS GC 1. 4 38. 3x - - - - - -
B right T hings plc S ocia l Networking United K ingdom AIM AIM:B G T 7. 9 35. 6x - - - - - 9.3x
B roadW ebAs ia Inc. S ocia l Networking United S ta tes OT C P K BWBA 5. 1 - - - - - - -
C DC C orp. G a ming Hong K ong Na s daqG S C HIN.A 249. 1 0.7x 0.7x 10. 9x 5. 3x - 10.4x 10. 6x
C hangyou. com L imited G a ming C hina Na s daqG S C Y OU 1, 796. 9 5.8x 4.9x 9.4x 7. 5x 12. 1x 10.6x 9.4x
C hines e G a mer Interna tiona l G a ming T aiwan GTS M G T S M:3083 842. 8 10. 9x - 18. 8x - 25. 4x - 12. 1x
C ornerW orld C orpora tion C ontent United S ta tes OT C B B CWR L 2. 9 1.3x - - - - - -
C yberplex Inc. Advertis ing C a na da TSX T S X:C X 69. 1 0.4x 0.4x 3.9x 3. 1x 6.0x 6. 2x 2.4x
DADA S pA S ocia l Networking Italy CM C M:DA 119. 0 0.7x - 5.4x - - - -
Digita lP os t Intera ctive, Inc. C ontent United S ta tes OT C B B DG LP 3. 9 5.1x - - - - - -
Digita lT own, Inc. S ocia l Networking United S ta tes OT C B B DG T W 34. 3 - - - - - - -
Dolphin Digital Media, Inc. S ocia l Networking United S ta tes OT C B B DP DM 14. 8 - - - - - - -
DXN Holdings B hd S ocia l Networking Ma la ys ia K LS E DXN 45. 6 0.8x - 4.0x - 5.5x - 0.9x
E n2G o Interna tional, Inc. S ocia l Networking United S ta tes OT C B B E TGI 21. 4 - - - - - - -
E olith C o. Ltd. G a ming S outh K orea K OS E A041060 45. 5 7.5x - 15. 8x - - - 1.0x
F luid Mus ic C a na da, Inc. Media United S ta tes TSX T S X:F MN 96. 1 15. 7x 15.6x - - - - 6.8x
F rogs ter Intera ctive P ictures AG G a ming G ermany XT R A FR G 70. 8 7.3x - - - - - 8.8x
G a ma nia Digita l E nterta inment C o., Ltd. G a ming T aiwan GTS M 6180 253. 1 1.5x - 9.0x - 26. 2x - 3.1x
G a meOn C o Ltd. G a ming J a pa n TSE 3812 75. 4 0.0x - 0.1x - 7.7x - 0.9x
G eoS entric Oyj Mobile F inla nd HL S E G E O 1V 51. 7 12. 0x - - - - - -
G ia nt Intera ctive G roup, Inc. G a ming C hina NY S E GA 1, 662. 6 - - - - 1.8x 15.2x 0.3x
G igaMedia L td. G a ming T aiwan Na s daqG S G IG M 150. 5 0.5x 0.9x - 18.2x 5.9x - 1.4x
G ravity C o. , L td G a ming S outh K orea Na s daqG M GR VY 53. 1 - - - - 0. 0x - 0.0x
G ree, Inc. S ocia l Networking J a pa n TSE T S E :3632 2, 592. 7 9.3x - 15. 8x - 31. 7x - 16. 5x
G ungHo O nline E nterta inment, Inc. Media J a pa n OS E 3765 263. 1 1.9x - 8.5x - 50. 6x - 8.3x
Ha nbitS oft, Inc. G a ming S outh K orea K OS E A047080 76. 6 1.1x - - - 72. 7x - 2.0x
IAC /InterActiveC orp. Media United S ta tes Na s daqG S IAC I 2, 677. 7 0.8x 0.7x 12. 6x 5. 3x 11. 4x 30.0x 1.3x
InternetArra y, Inc. Media United S ta tes OT C P K INAR 0. 0 1.1x - - - - - -
is eemedia Inc. C ontent C a na da T S XV IE E 8. 9 4. 9x - - - - - -
J umbuck E nterta inment L imited S ocia l Networking Aus tralia AS X AS X:J MB 12. 9 0.4x - 0.8x - 3.5x - 1.5x
K ings oft C o. L td. G a ming C hina S E HK 3888 847. 2 5.5x - 13. 8x - 18. 6x - 4.5x
L ingo Media C orporation Lea rning C a na da T S XV T S XV :L M 13. 2 9.4x - - - - - -
L ookS mart, Ltd. Direct Ma rketing United S ta tes Na s daqG M LO O K 16. 5 - - - - - - 0.7x
Ma gnitude Information S ys tems Inc. S ocia l Networking United S ta tes OT C B B MAG Y 6. 2 - - - - - - -
Mixi, Inc. S ocia l Networking J a pa n TSE 2121 1, 084. 1 7.0x - 21. 2x - 55. 5x - 7.1x
Modern T imes G roup Mtg AB Media S weden OM MT G B 3, 198. 6 1.9x - 13. 4x - 17. 4x - -
MO K O .mobi L imited S ocia l Networking Aus tralia AS X MK B 14. 1 18. 0x - - - - - 12. 3x
Multiplied Media C orporation Mobile C a na da T S XV T S XV : MMC 28. 5 - 6.9x - - - - 20. 3x
Myria d G roup AG Mobile S witzerla nd SWX MY R N 201. 3 3.1x - - - - - -
NE O W IZ G ames C orpora tion G a ming S outh K orea K OS E A095660 574. 2 2.6x - 9.6x - 28. 4x - 14. 4x
NetDra gon W ebS oft, Inc. G a ming C hina S E HK 777 279. 4 1.4x - 4.6x - 13. 6x - 1.5x
Netea s e.com Inc. G a ming C hina Na s daqG S NT E S 4, 269. 8 - - - - 2.3x 12.4x 0.6x
NeuL ion Incorpora ted V ideo C a na da TSX T S X:NLN 77. 6 2. 5x - - - - - 10. 3x
NeXplore C orpora tion C ontent United S ta tes OT C P K NXP C 39. 0 - - - - - - -
Ngi G roup Inc. Media J a pa n TSE 2497 38. 2 - - - - - - 0. 7x
Northgate T echnologies L imited Direct Ma rketing India BSE 590057 18. 5 0.4x - - - - - -
O AO R B C Information S ys tems Media R us s ia R TS R BCI 180. 3 0.0x - 0.3x - - - -
O riented Media G roup B erha d Media Ma la ys ia K LS E OME DIA 5. 3 1.9x - - - - - 2. 3x
O pen T ext C orp. C olla boration C a na da Na s daqG S OT E X 2, 254. 1 2.9x 2.5x 11. 0x 9. 2x 49. 2x 13.4x -
O penwa ve S ys tems Inc. Mobile United S ta tes Na s daqG S OP W V 184. 6 0.4x 0.4x 12. 8x 4. 0x - 29.1x 2.6x
T he P a rent C ompany Mobile United S ta tes OT C P K K IDS . Q 0. 5 0.2x 0.2x - 13.0x - - -
P erfect W orld C o., L td. G a ming C hina Na s daqG S PWR D 1, 900. 7 0.3x 1.7x 0.6x 3. 3x 2.3x 11.1x 1.0x
P NI Digita l Media Inc. Digita l Imaging C a na da T S XV T S XV : P N 57. 2 2.3x 2.0x 12. 9x 6. 2x - 11.0x 12. 8x
Q uepa s a C orp. S ocia l Networking United S ta tes OT C B B QP S A 37. 6 - - - - - - -
R eal V a lue E s ta tes , Inc. Media Is ra el OT C B B R V LU 9. 6 - - - - - - -
S aha ra Media Holdings , Inc. Media United S ta tes OT C B B S HHD 7. 8 - - - - - - 9.5x
S ha nda Intera ctive E ntertainment L td. G a ming C hina Na s daqG S S NDA 3, 104. 5 - - - - 2.0x 12.9x 0.3x
S hutterfly, Inc. Digita l Imaging United S ta tes Na s daqG S S FLY 406. 4 1.3x 1.2x 10. 9x 6. 8x - - 2.4x
S K C ommunica tions C o. , L td. S earch S outh K orea K OS E A066270 543. 6 2.7x - 41. 3x - - - -
S NAP Intera ctive, Inc. Da ting United S ta tes OT C B B STVI 8. 1 1.9x - 12. 3x - 45. 0x - 4.4x
S ocia l Media V entures Inc. Da ting United S ta tes OT C P K S MV I 0. 0 4.6x - - - - - -
S ocia lwis e, Inc. S ocia l Networking United S ta tes OT C B B S C LW 21. 9 - - - - - - -
S ohu.com Inc. G a ming C hina Na s daqG S S O HU 1, 931. 3 2.8x 2.4x 6.4x 5. 4x 11. 8x 13.5x 3.5x
S pa rk Networks , Inc. S ocia l Networking United S ta tes AME X LO V 59. 3 1.2x - 5.5x - 19. 6x - 26. 7x
S pectrumDNA, Inc. Media United S ta tes OT C B B S P XA 7. 3 - - - - - - -
T encent Holdings L td. P ortal C hina S E HK 700 33, 166. 7 22. 9x - 44. 8x - 57. 4x - 25. 5x
T he9 Limited G a ming C hina Na s daqG S NC T Y 175. 5 - - - - - - 0.1x
T heS treet.com, Inc. Media United S ta tes Na s daqG M TS CM 94. 3 0.5x 0.5x - - - - 1.2x
T ree. C om, Inc. P ortal United S ta tes Na s daqG M TR E E 79. 5 0.2x 0.2x 5.5x 6. 2x - - 1.2x
U nilava C orpora tion Media United S ta tes OT C B B UNL A 14. 0 2.7x - - - - - 0.6x
U nis erve C ommunica tions C orp. S ocia l Networking C a na da T S XV T S XV : US S 1. 9 0.4x - 43. 2x - - - -
U nited Online Inc. Media United S ta tes Na s daqG S UNT D 547. 3 0.8x 0.8x 3.8x 3. 3x - 4. 9x -
U O MO Media , Inc Media C a na da OT C B B U OMO 3. 5 4.1x - - - - - -
V alueC lick Inc. Media United S ta tes Na s daqG S V C LK 819. 0 1.2x 1.3x 5.0x 4. 9x - 15.3x 4.4x
V elti P lc Media United K ingdom AIM VE L 174. 6 2.0x - 9.6x - 19. 5x - 5.5x
V OIS , Inc. S ocia l Networking United S ta tes OT C B B V O IS 10. 9 - - - - - - -
W ebzen Inc. G a ming S outh K orea K OS E K O S E :A069080 136. 6 3.1x - 28. 4x - 71. 8x - 1.3x
W izza rd S oftwa re C orporation P odcas ting United S ta tes AME X W ZE 19. 2 4.0x - - - - - -
W orlds .com Inc. C ontent United S ta tes OT C B B W DDD 4. 8 - - - - - - -
XING AG S ocia l Networking G ermany XT R A O 1B C 220. 1 2.7x - 9.9x - 29. 5x - 6.3x
Y D O nline C orp. G a ming S outh K orea K OS E A052770 72. 6 1.3x - 6.1x - 7.3x - 2.2x
Y nk K orea Inc. G a ming S outh K orea K OS E A023770 13. 2 1.0x - 9.3x - - - 0.6x
High 33, 166. 7 38. 3x 15.6x 44. 8x 18.2x 72. 7x 30.0x 26. 7x
L ow 0. 0 0.0x 0.2x 0.1x 3. 1x 0.0x 4. 9x 0.0x
Average 769.6 4.5x 2.4x 11.7x 6.8x 22.7x 14.0x 5.5x
Media n 53. 1 1.9x 1.1x 9.5x 5. 4x 16. 4x 12.6x 2.4x
Figure 20. Valuation Comparison

Source. Capital IQ
Page 16

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 29 C hina 56, 945. 8 C hina 5, 694. 6 C hina 4, 496. 8 C hina 2, 262. 8 C hina 49. 0%
C hina 10 United S tates 5, 465. 2 S weden 3, 266. 2 United S tates 3, 752. 1 United S tates 393. 7 Aus tralia 42. 8%
C anada 9 J apan 4, 440. 9 J apa n 740. 1 S weden 1, 942. 0 S weden 274. 4 T aiwan 37. 3%
S outh K orea 9 S weden 3, 266. 2 T aiwan 515. 6 C anada 992. 4 J apan 213. 0 J apan 24. 3%
J apan 6 C anada 2, 538. 6 C anada 282. 1 S outh K orea 740. 1 C ana da 199. 5 S outh K orea 20. 1%
T aiwan 3 S outh K orea 1, 845. 8 Hong K ong 237. 5 J apan 680. 8 S outh K orea 133. 5 S weden 14. 1%
G ermany 3 T aiwan 1, 546. 9 S witzerland 205. 8 T aiwan 404. 6 T aiwan 65. 0 Italy 13. 1%
Aus tralia 2 G ermany 318. 0 S outh K orea 205. 1 Hong K ong 334. 2 Italy 31. 0 R us s ia 13. 1%
S witzerland 1 Hong K ong 237. 5 R us s ia 193. 9 Italy 236. 1 R us s ia 20. 4 Hong K ong 6. 0%
India 1 S witzerla nd 205. 8 United S ta tes 188. 5 G ermany 171. 4 Hong K ong 20. 0 S witzerland 5. 4%
F inland 1 R us s ia 193. 9 Italy 136. 8 R us s ia 156. 3 G erma ny 9. 7 G erma ny -7. 4%
United K ingdom 1 Italy 136. 8 G ermany 106. 0 Malays ia 78. 5 Aus tralia 4. 9 C ana da -10. 6%
Italy 1 F inland 51. 3 F inla nd 51. 3 S witzerla nd 63. 0 S witzerland 3. 4 United S tates -15. 4%
Hong K ong 1 Malays ia 36. 4 Ma lays ia 36. 4 India 47. 7 United K ingdom -2. 7 F inland NA
S weden 1 Aus tra lia 29. 4 India 20. 2 Aus tra lia 17. 8 F inland -18. 5 India NA
R us s ia 1 India 20. 2 Aus tralia 14. 7 F inland 4. 5 India -51. 2 United K ingdom NA
Malays ia 1 United K ingdom 5. 6 United K ingdom 5. 6 United K ingdom 0. 0 Malays ia -85. 2 Malays ia NA
G rand Total 80 G rand Total 77,284.4 G rand Total 966.1 G rand Total 14,118.5 G rand Total 3,473.8 G rand Total 11.8%
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 16 S E HK 40, 705. 3 S E HK 13, 568. 4 OM 1, 942. 0 Nas daqG S 1, 918. 2 NY S E 68. 2%

Nas daqG S 14 Nas daqG S 22, 230. 0 OM 3, 266. 2 S E HK 607. 9 S E HK 897. 1 AS X 42. 8%
K OS E 8 TS E 4, 129. 4 NY S E 1, 594. 3 Nas daqG S 508. 5 OM 274. 4 S E HK 40. 6%
T S XV 5 OM 3, 266. 2 Nas daqG S 1, 587. 9 CM 236. 1 TS E 187. 1 GTS M 37. 3%
TS E 5 K OS E 1, 799. 1 TS E 825. 9 NY S E 202. 3 NY S E 137. 9 Nas daqG S 30. 7%
Nas daqG M 4 NY S E 1, 594. 3 GTS M 684. 0 R TS 156. 3 K OS E 115. 4 TS E 24. 7%
TS X 3 GTS M 1, 368. 0 OS E 311. 5 OS E 116. 4 GTS M 65. 0 OS E 22. 3%
XT R A 3 XT R A 318. 0 K OS E 224. 9 TS E 112. 9 CM 31. 0 K OS E 18. 2%
OT C P K 3 OS E 311. 5 SWX 205. 8 GTS M 110. 5 OS E 25. 9 OM 14. 1%
S E HK 3 TS X 253. 3 R TS 193. 9 Nas daqG M 97. 3 Nas daqG M 25. 2 CM 13. 1%
AME X 2 Nas daqG M 237. 6 CM 136. 8 K OS E 86. 1 R TS 20. 4 R TS 13. 1%
AS X 2 S WX 205. 8 XT R A 106. 0 K LS E 78. 5 XT R A 9. 7 T S XV 9. 0%
GTS M 2 R TS 193. 9 TS X 84. 4 S WX 63. 0 AME X 6. 0 Nas daqG M 8. 6%
SWX 1 OT CB B 166. 1 Nas daqG M 59. 4 XT R A 57. 1 AS X 4. 9 SWX 5. 4%
HL S E 1 CM 136. 8 HL S E 51. 3 BSE 47. 7 SWX 3. 4 XT R A -7. 4%
CM 1 T S XV 97. 3 AME X 40. 0 TS X 46. 5 AIM -2. 7 AME X -27. 7%
BS E 1 AME X 79. 9 K LS E 36. 4 AME X 26. 4 TS X -7. 0 TS X -35. 8%
OS E 1 HL S E 51. 3 BS E 20. 2 AS X 8. 9 T S XV -7. 2 OT C B B -48. 2%
NY S E 1 OT CP K 48. 8 T S XV 19. 5 T S XV 8. 6 OT C P K -17. 9 OT C P K NA
AIM 1 K LS E 36. 4 OT C P K 16. 3 HL S E 4. 5 HL S E -18. 5 AIM NA
OM 1 AS X 29. 4 AS X 14. 7 OT CB B 2. 4 BSE -51. 2 BSE NA
R TS 1 BSE 20. 2 OT C B B 10. 4 OT CP K 0. 6 OT C B B -58. 3 HL S E NA
K LS E 1 AIM 5. 6 AIM 5. 6 AIM 0. 0 K LS E -85. 2 K LS E NA
G rand Total 80 G rand Total 77,284.4 G rand Total 966.1 G rand Total 14,118.5 G rand Total 3,473.8 G rand Total 11.8%
Figure 22. Comparison by Exchange

Source. Capital IQ
Page 17
F inanc ing - L as t Three Months (US $ m)

Fin. Amount (Million) Type of financ ing
Month C ompany Name C ountry Angel/S eed Debt financ ing S eries A S eries B S eries C S eries D S eries E G rand Total
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
Alic e.c om US A 6. 0 6. 0
E ventbrite US A 6. 0 6. 0
P lac ec as 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
P ros per.c om US A 1. 0 1. 0
Adfonic UK 0. 6 0. 6
S c oopler US A 0. 5 0. 5
Nov-09 Total 2.6 1.0 52.3 44.0 52.0 52.5 204.4
Dec -09 Zynga US A 180. 0 180. 0

Youku C hina 40. 0 40. 0
Zoos k US A 30. 0 30. 0
G roupon US A 30. 0 30. 0
L ithium US A 18. 0 18. 0
gW allet US A 12. 5 12. 5
MobG old C hina 12. 0 12. 0
Movik Networks US A 8. 5 8. 5
G owalla US A 8. 4 8. 4
G ogii US A 8. 2 8. 2
L iveMoc ha US A 8. 0 8. 0
S onic Mule US A 8. 0 8. 0
kaC hing US A 7. 5 7. 5
S eekingAlpha Is ra el 7. 0 7. 0
P ageonc e US A 6. 5 6. 5
G enius .c om US A 6. 5 6. 5
C urs e US A 6. 0 6. 0
AlikeL is t US A 5. 0 5. 0
P owerR eviews US A 4. 9 4. 9
S maato US A 4. 5 4. 5
S C VNG R US A 4. 0 4. 0
Tonc hidot J a pa n 4. 0 4. 0
Twilio US A 3. 7 3. 7
5 Minutes C hina 3. 5 3. 5
J anR ain US A 3. 3 3. 3
S toc kTwits US A 3. 0 3. 0
Artic le One P artners US A 3. 0 3. 0
Whis key Media US A 2. 5 2. 5
Appolic ious US A 2. 4 2. 4
G rapes hot UK 2. 4 2. 4
C enter'd US A 1. 9 1. 9
WeP ay US A 1. 7 1. 7
J inni Is ra el 1. 6 1. 6
Vis ible Tec hnologies US A 1. 0 1. 0
G lobalMotion Media US A 1. 0 1. 0
Dec -09 Total 2.5 1.0 58.0 101.5 210.9 76.5 450.4
J an-10 Quantc as t US A 27. 5 27. 5

P aymo US A 25. 0 25. 0
Yelp US A 25. 0 25. 0
Vis ible Tec hnologies US A 22. 0 22. 0
G uvera Aus tra lia 20. 0 20. 0
6 Waves C hina 17. 5 17. 5
S pic eworks US A 16. 0 16. 0
S MS G upS hup India 12. 0 12. 0
Aggregate K nowledge US A 9. 0 9. 0
Flurry US A 7. 0 7. 0
B uyWithMe US A 5. 5 5. 5
G aikai Netherlands 5. 0 5. 0
Apis phere US A 4. 6 4. 6
E yeka F rance 4. 3 4. 3
B eezag US A 2. 5 2. 5
J elli US A 2. 0 2. 0
S way US A 2. 0 2. 0
OneF orty US A 2. 0 2. 0
B lippy US A 1. 6 1. 6
G raphic .ly US A 1. 2 1. 2
XIHA F inla nd 1. 0 1. 0
S oc ialG O US A 0. 8 0. 8
J oonto US A 0. 6 0. 6
Drimmi R us s ia
J an-10 Total 5.4 40.9 23.3 97.5 22.0 25.0 214.1
Feb-10 B lue K ai US A 21. 0 21. 0

Avvas i C a na da 14. 1 14. 1
Yodle US A 10. 0 10. 0
Feb-10 Total 14.1 21.0 10.0 45.1
G rand Total 10.5 2.0 151.2 183.0 381.4 161.0 25.0 914.1
Figure 23. Financing, Last Three Months

Page 18
C ompany Des c riptions - C urrent Month C apital Market Ac tivity

C ompany HQ Webs ite Des c ription
6 Waves C hina www. 6waves . com 6waves is a venture ba cked compa ny that publis hes and develops gaming applications for s ocial networking s ites s uch a s F a cebook. S ome
of the compa ny's mos t famous games include Ha ppy Harves t, My F is hbowl, C ra zy O ffice, a nd Medica l Mayhem.
AdMarvel US A www. admarvel. com As of J anua ry 20, 2010, AdMarvel Inc. operates as a s ubs idiary of Opera S oftwa re AS A. AdMarvel is mobile advertis ing group that boa s ts
s imple ma nagement of ad tra ffic and higher revenue return. T hey partner with ad networks to deliver better res ults for publis hers .
Aggregate K nowledge US A www. aggrega teknowledge. com Aggregate K nowledge, Inc. provides s olutions tha t enable cus tomers to leverage rea l-time cons umer interes t into their advertis ing and
marketing campa igns . It offers P ique Dis covery Network that connects cons umers to the products , content, and items from va rious retailers
and media companies . Aggregate K nowledge s erves reta ilers and media compa nies . T he compa ny was founded in 2005 and is ba s ed in
S an Mateo, C alifornia.
Apis phere US A www. apis phere. com Apis phere, Inc. provides location-awarenes s s ervices for mobile bus ines s applications a nd devices . Its products include P roximityS phere, a
mobile geo-location engine; Apis E xpres s , a proces s engine tha t s upports a S MS gateway for interconnection between different wireles s
carriers ; and Apis Mobile, a thin client application that ca n be ins talled on J ava-enabled hands ets or laptops to communica te s ecurely with
Apis phere s ervers . T he compa ny’s G eo-E na bled Mobility platform ena bles organizations to mobilize bus ines s proces s es with loca tion-aware
on-dema nd ca pa bilities from field s ervice applications , mobile ins pection, and mobile s a les a nd cus tomer relations hip mana gement, to
mobile ad networks . Apis phere, Inc. was founded in 2006 and is ba s ed in B erkeley, C alifornia.
Avvas i C a nada www. avvas i. com Avvas i Inc. provides s ys tems pla y in video proces s ing s olutions for ca ble, s atellite and Internet protocol televis ion. T he company develops
video networking technology. T he company was founded in 2008 and is bas ed in K itchener, C a nada.
B eezag US A www. beezag. com B eeza g s pecia lizes in the s ending of video a ds to cons umers who are looking for the products and s ervices being advertis ed. T hes e
cons umers ha ve all opted-in and ra is ed their hands after being invited to join B eeza g.
B lippy US A www. blippy. com B lippy Inc. provides a s ervice that allows us ers to automatica lly s hare your credit card tra ns actions as you ma ke them. T he company was
founded in 2009 and is bas ed in P alo Alto, C alifornia.
B lue K ai US A www. blueka i. com B lue K ai, Inc. opera tes an online pla tform for intent-focus ed data exchange. Its platform enables marketers to cus tomize a nd own data to
boos t advertis ement targeting and dis cover new pros pects ; publis hers to provide intent data a nd earn revenue; a nd cons umers to manage
what ma rketers know a bout them. T he company wa s incorporated in 2007 and is bas ed in B ellevue, W a s hington.
B oku US A www. boku. com B O K U, Inc. provides online payments s ervices to pa y for virtual a nd digital goods with the mobile phone. It s erves cus tomers in the United
S tates a nd interna tionally. T he company was incorporated in 2008 a nd is bas ed in S an F ra ncis co, C a lifornia with additiona l offices in E urope,
As ia , a nd L atin America .
B uyWithMe US A www. buywithme. com B uyW ithMe, Inc. opera tes as a n online s hopping and group buying network for cons umers a nd bus ines s es in the United S tates . It ena bles
merchants to attract new cons umers and promote new products a nd s ervices , a s well as fa cilitates cons umers with va rious dis count options
from res ta urants , s ervices , events , and retailers . T he company wa s incorporated in 2009 and is headqua rtered in W elles ley, Mas s achus etts .
Dec is ion Maker Media US A www. ma rtinimedianetwork. com As of J anua ry 28, 2010, Decis ion Maker Media operates a s a s ubs idia ry of Ma rtini Media Network, Inc. Martini Media Network, Inc. operates
a media network in C a lifornia . T he compa ny operates MartiniL ife. com, a s ite that hos ts a curated publis hing network in golf, eques trian
s ports , s a iling, a nd other leis ure purs uits of high-net-worth cons umers , as well a s connects a dvertis ers with high-net-worth individua ls online.
Drimmi R us s ia www. drimmi. com Drimmi is a s ocial ga mes developer and publis her opera ting on R us s ia n and globa l ma rkets . T he company wa s founded in S eptember 2009
by Nikita S herma n (IT -T erritory, B egun, Mamba, O dnokla s s niki.ru) and is venture backed.
E cho Nes t US A www. the. echones t. com T he E cho Nes t C orporation is a mus ic intelligence compa ny. T he compa ny develops mus ic s earch, and pers onalization a nd interactive
applications on a pla tform tha t reads a bout and lis tens to online mus ic. It offers mus ic information s ervices to developers and partners
through its data mining a nd machine lis tening platform. T he E cho Nes t C orpora tion was incorporated in 2005 a nd is bas ed in S omerville,
E yeka F rance www. eyeka . com E yeka ish an online pla tform that enables brands , media , content owners , a nd mobile opera tors to s eize opportunities in new media. T he
company helps filmmakers , photographers , a nimators , a nd gra phic des igners to s hare abs tra ct art, a rchitecture a nd des ign, beauty and well-
being, bus ines s s ettings , concepts and s ymbols , emotions a nd feelings , flora and fauna, food and drink, medica l and hea lth, na ture and
lands ca pes , people a nd relations hips , s port and leis ure, technology, and tra vel a nd ethnology, as well a s commerce, indus try, a nd trans port;
and objects , ma teria ls , and textures . E yeka was founded in 2006 and is headqua rtered in P aris , F ra nce.
Flurry US A www. flurry. com F lurry, Inc. offers mobile a pplica tion ana lytics , deployment, and monetiza tion tools for mobile application developers . T he company wa s
formerly known as S V B T echnologies , Inc. and cha nged its name to F lurry, Inc. in 2006. T he compa ny was founded in 2005 and is bas ed in
S an F rancis co, C a lifornia .
Figure 24a. Company Descriptions

Source. Company reports, Capital IQ, Crunchbase
Page 19
C ompany Des c riptions - C urrent Month C apital Market Ac tivity

C ompany HQ Webs ite Des c ription
G aikai Netherla nds www. gaikai. com G a ika i B . V . offers online games . T he company was founded in 2008 and is headqua rtered in Alis o V iejo, C alifornia .
G raphic .ly US A www. graphic.ly G ra phicly is a digital content delivery s ys tem a nd community pla tform for the publis hing world. G raphic. ly’s firs t product focus es on comic
publis hers , creators a nd enthus ias ts , a nd provides an immers ive s ocia l experience and ma rketplace around digita l comics and as s ociated
merchandis e. T he compa ny is looking to expand its community and content pla tform and become the de facto s olution for print media.
G uvera Aus tralia www. guvera. com G uvera Limited provides an online s olution for downloading free entertainment content by avoding illegal downloads . It opera tes a W eb
interfa ce, an a cces s point through which its us ers acces s a nd s hare digital entertainment content, s uch as mus ic, film and televis ion content,
and games in a way that their favorite artis ts get paid for ea ch file they download. T he compa ny als o provides a n online advertis ing medium.
It s erves corporations a nd their adverting agencies , as well a s the entertainment indus try. G uvera L imited wa s founded in 2008 a nd is ba s ed
i R bi A t li
J elli US A www. jelli.net J elli, Inc. operates online radio s tation. T he company wa s incorporated in 2007 and is bas ed in S an Mateo, C alifornia.
J oonto US A www. s ociety. me J oonto runs S ociety. me, a pla tform that helps people generate buzz around their blogs us ing s ocia l networks like T witter and F acebook.
L iving S ocial US A www. livings ocial. com LivingS ocia l offers a collection of us er-review apps a cros s the mos t popula r s ocial networks (F a cebook, MyS pa ce, Hi5, B ebo, and Orkut).
T he apps are des igned to let people organize a nd dis cover their fa vorite books , movies , mus ic, res taura nts , ga mes , a nd beer.
Mochi Media US A www. mochimedia .com Mochi Media , Inc. provides tools a nd s ervices to s upport ga me developers . Its products include MochiAds , an online games network for
game developers , a dvertis ers , and publis hers ; MochiB ot, a traffic monitoring tool for flas h content; and MochiLand that provides articles ,
tutoria ls , and updates for the ga ming community. T he company’s online ga me network enables developers to monetize, track, and dis tribute
games a cros s the Internet, a s well as enables a dvertis ers to rea ch enga ged a udience through games ; and publis hers to acces s gaming
content to engage and monetize us ers on their s ite. Mochi Media, Inc. wa s founded in 2005 a nd is hea dquartered in S a n F rancis co,
C lif i
NuC onomy Is rael www. nuconomy. com NuC onomy Inc. operates as a W eb a na lytics company. It offers NuC onomy S tudio, a W eb analytics and optimization platform that ena bles
publis hers , a dvertis ers , and us ers to unders tand and act on s ocial marketing performance and community enga gement. T he company’s
product is a ls o us ed to meas ure the interactions a nd s ocial fea tures of W ebs ites ; optimize us er online pres ence, including a dvertis ing; a nd
create convers ational ma rketing opportunities . In addition, it enables publis hers to unders ta nd vis itors ’ behavior and enga gement on content,
brands , and s ite features by providing information on comments , ratings , video plays , s haring links , a nd purchas es . NuC onomy Inc. was
founded in 2006 and is bas ed in S an F rancis co, C a lifornia .
OneF orty US A www. oneforty.com Oneforty, Inc. provides online clea ring s ervices for applica tions rela ted to T witter. T he company was founded in 2009 and is bas ed in
C ambridge, Mas s achus etts .
P aymo US A www. paymo. com P aymo, Inc. operates a mobile payment network for online merchants . Its payment network enables cons umers to pa y for online purchas es
us ing their mobile phones . T he compa ny als o provides B uyNow, a payment s olution for s elling s ingle items on a one-off bas is with a s elf-
s ervice s etup widget. P aymo, Inc. was formerly known a s mT N G loba l, Inc. T he company was founded in 2007 and is bas ed in S an
F ra ncis co, C a lifornia with an additional office in London, the United K ingdom. As of J une 16, 2009, P aymo, Inc. operates as a s ubs idiary of
B O K U Inc
Quantcas t US A www. qua ntcas t.com Quantca s t is a media meas urement, web ana lytics s ervice that allows us ers to view audience tra ffic for millions of s ites . P articipa nts in
Quantca s t’s direct mea s urement progra m include F ox, C B S , B elo C orpora tion, AccuW eather, S lide, and IDG .
R eframe It US A www. reframeit. com R eframe It allows web us ers to comment on the text of any web pa ge without the permis s ion of the s ite. R eframe It’s mis s ion is to offer the
public a s pa ce right next to the web where news papers , bloggers , companies , governments , non-profits a nd individuals are able to hold one
another accountable for the information they convey and withhold from the public. T his lets people with relevant expertis e confirm good
information and it lets them cha llenge information which is inaccurate, mis leading and deceptive s o that the broader community of us ers ca n
India www. s ms gups hup. com b fi f T echnology
W ebaroo i (India) P riva te Limited, a s ocia l media compa ny, provides mobile group S MS s ervices . It operates a s an S MS
S MS G upS hup
mes s aging pla tform tha t enables us ers to create mobile communities and broadcas t mes s a ges to mobile communities . T he company a ls o
provides G upS hup s tream and group AP Is , which enable developers to build S MS -bas ed widgets a nd s ervices that advertis e group
mes s ages on their W ebs ite/blog, and pos t mes s ages to their group through their W ebs ite; and G upS hup Apps platform, which enables
developers to crea te S MS applications that help us ers communicate to s ys tems with S MS . In addition, it offers bus ines s advertis ing,
engagement marketing, and enterpris e mes s aging s ervices . F urther, the company provides S MS applica tions ; a nd mobile content, s uch as
wa llpapers , videos , mus ic, truetones , polytones , themes , and greetings . F urthermore, it has groups on various topics , s uch as bus ines s ,
clubs and orga niza tions , education and ca mpus , enterta inment, events and pa rties , finance, food a nd drinks , hea lth, jobs , jokes , micro-
blogging, movies and T V , mus ic, news and politics , roma nce, s hopping and dea ls , s pirituality, s ports , technology, and travel a nd lifes tyle. T he
Mumbai, India. W eba roo T echnology (India ) P rivate L imited opera tes as a s ubs idiary of W ebaroo Inc.
S ocialG O US A www. s ocialgo. com S ocialG O crea tes a flexible, fun s ocia l networking webs ite. It is s tand-alone or can s imply be bolted onto an exis ting s ite if need be. As a
brows er bas ed s ervice, it is operated from dedicated s ervers and does not require s oftwa re downloa ds . In this way, members of a network
can a cces s it from anywhere in the world.
S pic eworks US A www. s piceworks . com S piceworks , Inc. des igns , develops , and delivers s ocial information technology mana gement s oftwa re applications for s mall and medium
bus ines s es in the United S tates . It offers a n IT Des ktop, which provides network inventory, help des k, reporting, monitoring, and
troubles hooting of s oftwa re and hardware as s ets in the networks . T he company provides a downloadable P ower Ma nager plug-in that
ena bles informa tion technology profes s ionals to automa tica lly regula te the power cons umption of networked computers . It s erves various
organizations , including s ys tems integrators , government a gencies , bus ines s es , manufacturers , educa tiona l ins titutions , a nd non-profits .
S piceworks , Inc. was founded in 2006 and is headquartered in Aus tin, T exa s .
S tudioNow US A www. s tudionow. com S tudioNow, Inc. provides a n online video, anima tion, a nd a udio crea tion pla tform for the creation and dis tribution of on-dema nd video
content. It s erves editors , videographers , creative individuals , media organizations , Internet ma rketers , a dvertis ers , book authors , publicis ts ,
and marketing managers . T he company was incorpora ted in 2006 and is ba s ed in Nas hville, T ennes s ee. As of J a nua ry 22, 2010,
S tudioNow, Inc. opera tes as a s ubs idiary of AO L, Inc.
S tyleF eeder US A www. s tylefeeder.com S tyleF eeder, Inc. operates an online s ocial s hopping s ite. It provides a way to find, s hare, a nd keep track of s hopping s tuff online us ing
vis ua l bookmarks . T he company was founded in 2005 and is ba s ed in C a mbridge, Ma s s a chus etts . As of J a nua ry 19, 2010, S tyleF eeder, Inc.
opera tes as a s ubs idiary of T ime Inc.
S tylehive US A www. s tylehive. com S tylehive is a s ocial bookma rking s ite that is focus ed on s hopping. S tylehive helps its us ers to follow and s hare s tyles they like by crea ting
ta gged collections . S tylehive’s members ca n comment and s peak with other members and profes s ionals can promote thems elves a nd get
noticed by the world for their s tyle. S tylehive lets its members build and s hare their own s hopping wis hlis ts for the holidays , weddings a nd
US A www. s wayonline. com i Inc. provides s ocial media marketing s olutions . It offers S houtlet, a W eb-bas ed application tha t a llows us ers to create, dis tribute, and
S way,
S way
tra ck elements of s ocial media ca mpaigns . T he company als o provides online ins ights and s trategic s ervices . S way, Inc. was founded in
2004 and is headquartered in Middleton, W is cons in.
This Next US A www. this next.com T his Next, Inc. operates a s ocia l product dis covery and recommenda tion s ite. Its s ite is a s hopcas ting network tha t a llows its members to
dis cover, recommend, and s hare things they love. T he company was incorpora ted in 2005 and is bas ed inS anta Monica, C alifornia.
Vis ible Tec hnologies US A www. vis ibletechnologies . com V is ible T echnologies , Inc. provide online brand ma nagement s olutions for companies a nd individuals . T he company’s products include
truP UL S E , a R R S feed-bas ed s ocial media monitoring a nd analys is applica tion; truV OIC E , a s ocial media monitoring, ana lys is , and
participa tion application; and truS E AR C H, a s earch a pplica tion that provides key phra s e bas ed drilldown, topic dis covery, a nd conceptua l
s earch functionalities . It als o offers truINS IG HT , a s et of profes s iona l s ervices a nd reports for tracking and mea s uring s ocia l media
convers ations a nd truR E P UT AT IO N, a s et of s ervices for ma naging, protecting, and repairing corpora te and individual reputations online.
T he compa ny partners with W P P ; B eyond Interaction; B urs on Digital; M80; O mniture, Inc. ; S pring C reek G roup; W underman; a nd C oncepts
& S trategies , Inc. V is ible T echnologies was founded in 2005 and is bas ed in B ellevue, W as hington with an a dditional office in New Y ork,
New Y ork
XIHA F inland www. xihalife. com XIHA, Ltd. opera tes as a multilingual online community. It offers homepages , blogs , photo s haring tools , mus ic, a nd downloadable pers ona l
computer/Mac games , as well as ways to integrate content with other s ocia l media W ebs ites . T he company offers s ervices in the United
S tates , C hina , B razil, F rance, and S pain. X IHA, Ltd. was founded in 2007 and is bas ed in Hels inki, F inland.
Yelp www. yelp.com Y elp, Inc. , an online community, provides informa tion on urban city guide. Its informa tion helps people to find pla ces to eat, s hop, drink,
rela x, and pla y. Y elp, Inc. wa s founded in 2004 a nd is hea dquartered in S an F rancis co, C alifornia.
Yodle US A www. yodle. com Y odle, Inc. provides online advertis ing s ervices for bus ines s es . It enables to promote bus ines s on s ea rch engines a nd W eb s ites . T he
company s erves va rious s ervice indus tries , s uch a s bea uty and pers onal care, bus ines s and profes s ional s ervices , hea lth a nd medical,
home and garden, and travel and lifes tyle. Y odle, Inc. wa s formerly known as Natpa l, Inc. T he company was founded in 2005 and is bas ed in
N Y k N Y k
Figure 24b. Company Descriptions – continued

Source. Company reports, Capital IQ, Crunchbase
Page 20
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SOFTWARE & SERVICES 2 FEBRUARY 2010

David Shore, CFA, MBA 416.860.6784

Public vs. Private Markets

1 Week P rice P erformance

… But Venture Rounds Continue to Attract Investors

The Web 2.0 Universe

C omparable C ompany Analys is > Web 2.0

Figure 1. Web 2.0 Universe Summary

Capital Markets Activity (M&A and Financing)

Financing Activity Last Twelve Months

*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

Capital Markets Activity (Price Performance)

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

Public Company Industry News (Partnerships, Financial Results, New Products)

Figure 7. Key Developments

Market C ap ($US mm)

Figure 8. Market Cap Ranking

4.2 4.2 3.4 3.1

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

2.6 2.5 2.3 1.9

Average TEV/LTM Revenue - By Exchange

1.4 1.5 1.9 1.9 1.9 1.9 2.0

NeuL ion Inc orporated

Wiz z ard S oftware C orporation

K ings oft C o. L td.

C hangy ou. com L imited

South G eoS entric O y j

Average TEV/LTM Revenue - By Country

G ungHo O nline E ntertainment, Inc .

G amania Digital E ntertainment C o. , Ltd.

P NI Digital Media Inc .

C hines e G amer International

Unis erve C ommunic ations C orp.

C hangy ou. com L imited

T ree. C om, Inc .

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

S NAP Interac tive, Inc .

NetDragon WebS oft, Inc .

V alueC lic k Inc .

S park Network s , Inc .

S ohu. com Inc .

AQ Interac tive, Inc .

IAC /InterAc tiveC orp.

T encent Holdings L td.

O penwave S ys tems Inc.

K ings oft C o. L td.

Figure 12. TEV/EBITDA Ranking

Average TEV/LTM EBITDA - By Country

13.9 13.4 10.0 10.7 9.9

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

NE O WIZ G ames C orporation

G amania Digital E ntertainment C o., Ltd.

G ungHo O nline E ntertainment, Inc.

C hangy ou. com Limited

Modern T imes G roup Mtg AB

S handa Interactive E ntertainment Ltd.