Web 2.0 Weekly - Mar. 1, 2010

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

WEB 2.0 WEEKLY dshore@mackieresearch.com
Damian Wojcichowsky, CFA 416.860.7652
Modest Growth in VC Activity for February 2010

Capital Markets Activity – February Finished Up 5% Y/Y
Total transaction value in the Web 2.0 universe at February end was $204 million (+5.4% Y/Y). The number of
financings ended at 25, averaging $8.2 million each. In comparison, total capital raised in January was $214.1 million,
averaging $9.3 million over 23 deals. 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 $5.9 million (30
deals).
Financing Activity Last Twelve Months
500.0 16.0
450.0 13.9
14.0
12.9
400.0
12.0
350.0 10.8
9.3 10.0
300.0 9.0
8.2
(US$m)
(US$m)
250.0 8.0
6.9 7.0
6.5
6.2
200.0 5.8
5.6 6.0
4.7
150.0
4.0
100.0
2.0
50.0
0.0 0.0
Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10
*May-09 includes $200m FB investment Total Average

Dec-09 includes $180m Zynga investment
Deal Focus – Video and Ad Sectors Attracting the Big Money

Deal round-up for February: The large deal highlights for the month include:
Aardvark – social search engine – was acquired by Google for $50 million.
Glam Media – online media company – received a capital injection of $50 million.
Qiyi – a new premium licensed video venture from Baidu – received a $50 million investment.
BlueKai – intent-focused data exchange – raised $21 million in a Series C financing.
Ustream – online video service provider – raised $20 million.
WebVisible – SaaS-based online ad service provider – received $20 million in its third funding round.
TidalTV – online platform for branded video – received $16 million in a Series B funding.
Rent the Runway – online haute couture merchandise rental service – received $15 million in an unnamed round.
Avvasi – solutions provider in the video processing space – raised $14 million in its second round of funding.
BrightRoll – video ad network – raised $10 million in its third round.
Yodle – online advertising service – raised $10 million in Series D financing.
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.
w w w . m a c k i e re s e a r c h . c o m
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

Ninety-seven public Web 2.0 companies: Our Web 2.0 universe contains 97 companies, with a combined market cap of
approximately $74 billion (Figure 1). The median market cap for the group is $49 million, with average trailing revenue
of $396 million (median $10.9 million). The companies are also generally profitable with a median EBITDA margin of
11.1%. On a valuation basis, the overall average is 5.4x trailing revenue (median 1.8x) and 11.4x trailing EBITDA
(median 9.3x). Thirteen 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 Tic ker E xc hange C urrency HQ P ric e C ap ($m) R ev ($m) E B ITDA ($m) % R evenue E B ITDA E mployees
Acceleriz e New Media, Inc. 9/30/2009 AC LZ OT C B B US D U nited S ta tes 0. 55 15. 8 4. 1 (1. 5) -36. 5% 5. 0x - 11
Actoz S oft C o. , L td. 9/30/2009 A052790 K OS E KRW S outh K orea 14400. 00 109. 4 119.3 26. 5 22. 2% 0. 6x 2. 6x NA
AQ Intera ctive, Inc. 12/31/2009 3838 TSE JPY J apa n 138000. 00 83. 9 NM NM NM 0. 9x - NA
As knet AG 9/30/2009 XT R A:A5A XT R A E UR G erma ny 3. 55 24. 2 8,361. 4 (107. 7) -1.3% 0. 2x - NA
As s ocia ted Media Holdings Inc. 6/30/2007 AS MH OT C P K US D U nited S ta tes 0. 02 0. 9 0. 1 (2. 3) NM 19. 4x - 3
B eta wa ve C orpora tion 9/30/2009 B W AV OT C B B US D U nited S ta tes 0. 13 3. 8 8. 4 (14. 3) NM 0. 2x - 48
B eyond C ommerce, Inc. 9/30/2009 B Y O C OT C B B US D U nited S ta tes 0. 02 1. 4 13. 5 (12. 4) -91. 9% 1. 0x - 86
B igs tring C orp. 9/30/2009 B S G C OT C B B US D U nited S ta tes 0. 02 1. 4 0. 1 (1. 0) NM 38. 4x - 4
B right T hings plc 9/30/2009 AIM: B G T AIM GBP U nited K ingdom 0. 02 8. 2 0. 1 (3. 4) NM 40. 5x - 9
B roa dW ebAs ia Inc. 9/30/2008 B W B A OT C P K US D U nited S ta tes 0. 04 3. 4 0. 0 (4. 6) NM - - 46
C DC C orp. 9/30/2009 C HIN.A Na s da qG S US D Hong K ong 2. 49 264. 0 334.2 20. 0 6. 0% 0. 7x 11. 7x 2, 227
C ha ngyou. com L imited 12/31/2009 C Y O U Na s da qG S US D C hina 32. 96 1, 812. 8 267.6 166. 6 62. 2% 5. 9x 9. 5x NA
C hines e G amer Interna tiona l 9/30/2009 G T S M: 3083 GTS M TWD T a iwan 307. 00 804. 9 0. 0 (0. 1) NM 10. 5x 18. 1x NA
C ody V entures C orpora tion 6/30/2007 C V C P OT C P K US D U nited S ta tes 0. 00 0. 1 0. 1 (0. 1) NM 1. 6x - NA
C ornerW orld C orporation 10/31/2009 C W R L OT C B B US D U nited S ta tes 0. 04 3. 8 9. 2 NM NM 1. 4x - 16
C yberplex Inc. 9/30/2009 T S X: C X TSX C AD C ana da 0. 91 60. 1 2,123. 3 1, 232.1 58. 0% 0. 4x 3. 2x NA
DADA S pA 9/30/2009 C M:DA CM E UR Ita ly 4. 88 106. 8 12. 4 NM NM 0. 7x 6. 1x NA
Digita lP os t Intera ctive, Inc. 9/30/2009 DG L P OT C B B US D U nited S ta tes 0. 06 5. 2 1. 2 (0. 9) -73. 8% 6. 2x - 7
Digita lT own, Inc. 11/30/2009 DG T W OT C B B US D U nited 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 U nited S ta tes 0. 35 19. 9 0. 3 (4. 6) NM - - NA
DXN Holdings B hd 11/30/2009 DXN K LS E MY R Mala ys ia 0. 67 45. 0 34. 0 3. 8 11. 1% 0. 7x 4. 0x NA
E n2G o Interna tional, Inc. 11/30/2009 E T G I OT C B B US D U nited S ta tes 0. 60 14. 4 NM (1. 9) NM - - NA
Neurotech P harma ceuticals C o. , Ltd. 9/30/2009 A041060 K OS E KRW S outh K orea 455. 00 30. 3 0. 2 0. 0 18. 7% 5. 1x 10. 7x NA
eW orldC ompa nies , Inc. 6/30/2008 E W R C OT C P K US D U nited S ta tes 0. 00 0. 9 0. 0 NM NM 30. 3x - NA
F luid Mus ic C a nada , Inc. 9/30/2009 T S X: F MN TSX C AD U nited S ta tes 1. 73 104. 6 5. 6 (3. 0) -54. 0% 17. 4x - NA
F rogs ter Intera ctive P ictures AG 6/30/2009 F R G XT R A E UR G erma ny 20. 00 69. 2 7. 5 (4. 1) -54. 0% 7. 6x - NA
G a ma nia Digita l E nterta inment C o. , Ltd. 9/30/2009 6180 GTS M TWD T a iwan 47. 90 229. 1 0. 2 (0. 1) -47. 0% 1. 3x 8. 2x NA
G a meO n C o L td. 12/31/2009 3812 TSE JPY J apa n 68500. 00 74. 1 54. 9 9. 1 16. 5% 0. 0x 0. 1x NA
G eoS entric O yj 9/30/2009 G E O1V HL S E E UR F inla nd 0. 04 48. 5 9,273. 2 2, 161.1 23. 3% 12. 0x - 118
G ia nt Intera ctive G roup, Inc. 9/30/2009 G A NY S E US D C hina 7. 57 1, 717. 0 0. 5 (1. 9) NM - - 1, 570
G iga Media L td. 3/31/2009 G IG M Na s da qG S US D T a iwan 2. 90 158. 1 183.6 NM NM 0. 5x - 751
G ra vity C o. , Ltd 9/30/2009 G R V Y Na s da qG M US D S outh K orea 2. 04 56. 8 0. 2 NM NM - - 469
G ree, Inc. 12/31/2009 T S E : 3632 TSE JPY J apa n 5690. 00 2, 878. 4 667.1 236. 2 35. 4% 10. 1x 17. 2x NA
G ungHo Online E ntertainment, Inc. 9/30/2009 3765 OS E JPY J apa n 209200. 00 268. 1 269.3 158. 5 58. 8% 1. 9x 8. 5x NA
HanbitS oft, Inc. 9/30/2009 A047080 K OS E KRW S outh K orea 3760. 00 71. 0 9. 3 2. 1 22. 3% 1. 0x - NA
IAC /InterActiveC orp. 12/31/2009 IAC I Na s da qG S US D U nited S ta tes 23. 07 2, 689. 0 1,375. 8 81. 7 5. 9% 0. 8x 13. 2x NA
InternetArra y, Inc. 12/31/2006 INAR OT C P K US D U nited S ta tes 0. 00 0. 0 5. 9 (4. 0) -68. 6% 1. 1x - NA
Is e B lu E quity C orp. 12/31/2006 IS B L OT C P K US D U nited S ta tes 0. 00 0. 0 0. 0 NM NM 0. 5x - NA
is eemedia Inc. 9/30/2009 IE E T S XV C AD C ana da 0. 19 9. 6 1. 9 (4. 2) NM 5. 3x - NA
J umbuck E nterta inment Limited 6/30/2009 AS X:J MB AS X AU D Aus tralia 0. 30 13. 2 17. 3 7. 4 42. 8% 0. 4x 0. 9x 79
K ent Interna tiona l Holdings Inc. 9/30/2009 K NT H OT C P K US D U nited S ta tes 1. 65 5. 9 0. 0 (0. 4) NM - - NA
K ings oft C orpora tion Limited 9/30/2009 3888 S E HK HK D C hina 6. 60 932. 7 143.4 57. 7 40. 2% 6. 2x 15. 5x 2, 271
L ingo Media C orpora tion 9/30/2009 T S XV :L M T S XV C AD C ana da 0. 94 11. 2 1. 4 (2. 3) NM 8. 0x - NA
L ookS ma rt, L td. 9/30/2009 L OO K Na s da qG M US D U nited S ta tes 0. 95 16. 3 54. 0 (4. 5) -8.4% - - 90
Magnitude Informa tion S ys tems Inc. 9/30/2009 MAG Y OT C B B US D U nited S ta tes 0. 01 5. 5 0. 1 (2. 3) NM - - 14
Mixi, Inc. 12/31/2009 2121 TSE JPY J apa n 584000. 00 1, 009. 9 143.3 43. 4 30. 3% 6. 1x 20. 3x NA
Mobile Da ta C orp. 10/31/2009 MB Y L OT C B B US D U nited S ta tes 0. 14 3. 3 NM NM NM - - NA
Modern T imes G roup Mtg AB 12/31/2009 MT G B OM SEK S weden 406. 50 3, 715. 5 1,965. 9 262. 2 13. 3% 2. 1x 15. 8x NA
MOK O . mobi L imited 6/30/2009 MK B AS X AU D Aus tralia 0. 10 10. 1 0. 7 (2. 5) NM 12. 8x - NA
Multiplied Media C orporation, P rior to R evers e Merger with
9/30/2009
R ewa rd P hone
T S XVInterna
:MMCtiona l Inc.
T S XV C AD C ana da 0. 29 36. 1 0. 2 (4. 8) NM - - NA
Myria d G roup AG 6/30/2009 MY R N SWX C HF S witzerla nd 4. 70 191. 7 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 34100. 00 620. 3 213.5 57. 3 26. 8% 2. 9x 10. 6x NA
NetDragon W ebS oft, Inc. 9/30/2009 777 S E HK HK D C hina 4. 60 313. 2 91. 4 27. 8 30. 4% 1. 8x 5. 9x 2, 426
Neteas e. com Inc. 9/30/2009 NT E S Na s da qG S US D C hina 38. 31 4, 961. 9 483.0 291. 8 60. 4% - - 3, 109
NeuL ion Incorporated 9/30/2009 T S X: NL N TSX C AD C ana da 0. 50 55. 9 24. 9 (16. 1) -64. 5% 1. 6x - 237
NeXplore C orporation 9/30/2009 NXP C OT C P K US D U nited S ta tes 0. 60 33. 5 0. 5 NM NM - - NA
Ngi G roup Inc. 12/31/2009 2497 TSE JPY J apa n 43300. 00 60. 0 76. 7 (1. 3) -1.7% - - NA
Northga te T echnologies L imited 9/30/2009 590057 BSE INR India 19. 60 14. 8 48. 3 (51. 9) NM 0. 3x - NA
OAO R B C Informa tion S ys tems 12/31/2007 R B C I MIC E X R UB R us s ia 35. 98 166. 4 0. 0 (0. 3) NM 1. 1x 8. 1x NA
Oriented Media G roup B erha d 9/30/2009 O ME DIA K LS E MY R Mala ys ia 0. 22 8. 5 NM NM NM 3. 1x - NA
Open T ext C orp. 12/31/2009 O T E X Na s da qG S US D C ana da 48. 30 2, 727. 2 854.6 230. 2 26. 9% 3. 2x 12. 0x 3, 700
Openwave S ys tems Inc. 12/31/2009 O P W V Na s da qG S US D U nited S ta tes 2. 68 224. 5 192.2 8. 6 4. 5% 0. 6x 13. 9x 590
T he P a rent C ompany 8/2/2008 K IDS . Q OT C P K US D U nited S ta tes 0. 00 0. 1 112.0 (13. 5) -12. 0% 0. 2x - 347
P erfect W orld C o. , L td. 9/30/2009 P W R D Na s da qG S US D C hina 35. 89 1, 785. 8 28. 1 1. 3 4. 5% 0. 3x 0. 5x 2, 096
P NI Digita l Media Inc. 12/31/2009 T S XV :P N T S XV C AD C ana da 1. 75 56. 5 1,871. 9 1, 029.7 55. 0% 2. 1x 8. 6x NA
Quepa s a C orp. 9/30/2009 Q P S A OT C B B US D U nited S ta tes 3. 99 50. 8 0. 2 (9. 8) NM - - 74
R ea l V alue E s ta tes , Inc. 11/30/2009 R V LU OT C B B US D Is rael 1. 20 7. 7 NM NM NM - - NA
S aha ra Media Holdings , Inc. 9/30/2009 S HHD OT C B B US D U nited S ta tes 0. 30 9. 3 0. 0 (4. 7) NM - - 15
S ha nda Intera ctive E nterta inment Ltd. 9/30/2009 S NDA Na s da qG S US D C hina 40. 51 2, 724. 5 694.4 317. 2 45. 7% - - 3, 124
S hutterfly, Inc. 12/31/2009 S F L Y Na s da qG S US D U nited S ta tes 20. 23 524. 2 246.4 32. 6 13. 2% 1. 4x 10. 5x 519
S K C ommunica tions C o. , Ltd. 12/31/2008 A066270 K OS E KRW S outh K orea 14850. 00 536. 6 198.4 12. 9 6. 5% 2. 7x 41. 6x NA
S NAP Intera ctive, Inc. 9/30/2009 S T V I OT C B B US D U nited S ta tes 0. 17 5. 5 3. 4 0. 5 15. 6% 1. 2x 7. 5x 11
S ocia l Media V entures Inc. 12/31/2008 S MV I OT C P K US D U nited S ta tes 0. 00 0. 0 0. 1 (0. 1) -60. 6% 4. 6x - NA
S ocia lwis e, Inc. 12/31/2009 S C LW OT C B B US D U nited S ta tes 0. 50 24. 2 0. 0 (4. 7) NM - - NA
S ohu. com Inc. 12/31/2009 S O HU Na s da qG S US D C hina 51. 20 1, 933. 7 515.2 222. 2 43. 1% 2. 8x 6. 5x NA
S pa rk Networks , Inc. 9/30/2009 L OV AME X US D U nited S ta tes 2. 95 60. 7 47. 5 10. 0 21. 0% 1. 2x 5. 7x 183
S pectrumDNA, Inc. 9/30/2009 S P XA OT C B B US D U nited S ta tes 0. 10 4. 6 0. 1 (2. 5) NM 33. 0x - 7
S prylogics Interna tiona l C orp 10/31/2009 T S XV :S P Y T S XV C AD C ana da 0. 03 0. 7 0. 4 (0. 2) -50. 0% 1. 7x - NA
T encent Holdings L td. 9/30/2009 700 S E HK HK D C hina 155. 00 36,425. 1 1,588. 6 811. 4 51. 1% 25. 2x 49. 4x 6, 194
T he9 Limited 3/31/2009 NC T Y Na s da qG S US D C hina 7. 01 176. 0 248.7 65. 6 26. 4% - - 1, 626
T heS treet. com, Inc. 9/30/2009 T S C M Na s da qG M US D U nited S ta tes 3. 47 109. 4 61. 1 1. 7 2. 8% 0. 8x 26. 9x 310
T ree. C om, Inc. 12/31/2009 T R E E Na s da qG M US D U nited S ta tes 8. 58 93. 6 216.8 9. 2 4. 2% 0. 4x 9. 3x NA
U nila va C orpora tion 12/31/2008 U NLA OT C B B US D U nited S ta tes 0. 34 33. 5 5. 3 (1. 0) -18. 1% 6. 4x - 39
U nis erve C ommunications C orp. 11/30/2009 T S XV :U S S T S XV C AD C ana da 0. 12 2. 8 5. 0 (0. 9) -18. 1% 0. 5x 9. 4x NA
U nited O nline, Inc. 12/31/2009 U NT D Na s da qG S US D U nited S ta tes 6. 39 542. 9 990.1 204. 1 20. 6% 0. 8x 3. 7x NA
U OMO Media, Inc 10/31/2009 U OMO OT C B B US D C ana da 0. 03 2. 8 1. 0 (0. 4) -42. 2% 3. 4x - NA
V alueC lick , Inc. 12/31/2009 V C LK Na s da qG S US D U nited S ta tes 9. 74 813. 6 422.7 116. 2 27. 5% 1. 5x 5. 6x NA
V elti P lc 6/30/2009 V E L AIM GBP U nited K ingdom 3. 29 185. 0 78. 6 16. 1 20. 5% 2. 2x 10. 9x 450
V OIS , Inc. 12/31/2009 V O IS OT C B B US D U nited S ta tes 0. 01 9. 0 0. 0 (1. 4) NM - - 2
W ebzen Inc. 12/31/2009 K O S E : A069080 K O S E KRW S outh K orea 12800. 00 130. 8 24. 0 (0. 8) -3.2% 2. 9x - NA
W e-R -Y ou C orp. 9/30/2007 W E R U OT C P K US D U nited S ta tes 0. 01 0. 3 0. 6 (0. 2) -29. 1% 0. 6x - NA
W iz za rd S oftwa re C orpora tion 9/30/2009 W ZE AME X US D U nited S ta tes 0. 33 17. 6 5. 2 (3. 9) -76. 4% 3. 7x - 110
W orlds . com Inc. 9/30/2009 W DDD OT C B B US D U nited S ta tes 0. 10 5. 4 0. 1 (0. 6) NM - - 1
W ynds torm C orpora tion NA W Y ND OT C P K US D U nited S ta tes 0. 05 0. 9 NA NM NM - - NA
XING AG 9/30/2009 O 1B C XT R A E UR G erma ny 27. 59 193. 4 57. 6 15. 5 27. 0% 2. 5x 9. 1x 266
Y D Online C orp. 12/31/2007 A052770 K OS E KRW S outh K orea 6590. 00 85. 3 59. 1 12. 7 21. 6% 1. 6x 7. 2x NA
Y nk K orea Inc. 12/31/2008 A023770 K OS E KRW S outh K orea 2795. 00 19. 2 12. 3 1. 3 10. 5% 1. 5x 14. 2x NA
High 36,425. 1 9, 273. 2 2, 161.1 62. 2% 40. 5x 49. 4x 6, 194
L ow 0. 0 0. 0 -107. 7 -91. 9% 0. 0x 0. 1x 1
Average 787.5 396.4 93.1 2.9% 5.4x 11.4x 795
Media n 48. 5 10. 9 -0. 2 11. 1% 1. 8x 9. 3x 114
Figure 1. Web 2.0 Universe Summary

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

Deal activity up modestly Y/Y: Total transaction value in the Web 2.0 universe at February end was $204 million (+5.4%
Y/Y). The number of financings ended at 25, averaging $8.2 million each. In comparison, total capital raised in January
was $214.1 million, averaging $9.3 million over 23 deals. 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 $5.9
million (30 deals).
Financing Activity Last Twelve Months
500.0 16.0
450.0 13.9
14.0
12.9
400.0
12.0
350.0 10.8
9.3 10.0
300.0 9.0
8.2
(US$m)
(US$m)
250.0 8.0
6.9 7.0
6.5
6.2
200.0 5.8
5.6 6.0
4.7
150.0
4.0
100.0
2.0
50.0
0.0 0.0
Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-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 February: The large deal highlights for the month include:
Aardvark – social search engine – was acquired by Google for $50 million.
Glam Media – online media company – received a capital injection of $50 million.
Qiyi – a new premium licensed video venture from Baidu – received a $50 million investment.
BlueKai – intent-focused data exchange – raised $21 million in a Series C financing.
Ustream – online video service provider – raised $20 million.
WebVisible – SaaS-based online ad service provider – received $20 million in its third funding round.
TidalTV – online platform for branded video – received $16 million in a Series B funding.
Rent the Runway – online haute couture merchandise rental service – received $15 million in an unnamed round.
Avvasi – solutions provider in the video processing space – raised $14 million in its second round of funding.
BrightRoll – video ad network – raised $10 million in its third round.
Yodle – online advertising service – raised $10 million in Series D financing.
All other deals in the month were in the amount of $10 million or less. For additional details on financings, see Figures
23 and 24 (at end of note).
Financing & M/A Summary - Last Three Months
250.0
200.0
150.0
Feb-10
(US$m)
Jan-10
Dec-09
100.0
50.0
0.0
Movik Networks
Vivox
Mixer Labs
PowerReviews
Flixster
DubMeNow
Avvasi
AdMarvel
XIHA
Zynga
Mochi Media
Guvera
MobGold
Aggregate Knowledge
LiveMocha
SonicMule
Everyscape
Eyeka
Effective Measure
Twilio
Cognitive Match
Beezag
Moblyng
GlobalMotion Media
Stylehive
Decision Maker Media
Rent the Runway
Fynanaz
Pursway
Sway
MOG
Stylefeeder
StudioNow
Moonshoot
ThisNext
Qiyi
Cozi
Living Social
Jajah
Shanghai Dacheng
Glam Media
Youku
Groupon
Yelp
Paymo
Lala
SMSGupShup
Yodle
Gowalla
Currensee
kaChing
SeekingAlpha
ChaCha
Pageonce
Curse
PeerPong
Apisphere
JanRain
Scrapblog
Center'd
HootSuite
Sonico
Rekoo
Joonto
AppsFire
AppVee
Aardvark
Spiceworks
Flurry
Gizmoz
5 Minutes
StockTwits
Smilebox
OneForty
Blippy
Graphic.ly
Backupify
Friendster
SocialGO
Ranker
Quantcast
AlikeList
SCVNGR
Tonchidot
Grapeshot
Echo Nest
ReachLocal
Blue Kai
TidalTV
BrightRoll
Gogii
Gaikai
Rocket Fuel
Jelli
Jinni
KODA
Ngmoco
BuyWithMe
Smaato
Whiskey Media
Zoosk
Visible Technologies
Cloud Engines
Article One Partners
NuConomy
Vook
Appolicious
Serious Business
Ustream
Lithium
Genius.com
Prosper.com
Yammer
Reframe It
6 Waves
WePay
TuneWiki
Drimmi
WebVisible
gWallet
Figure 3. Capital Market Activity, Last Three Months

Page 5
Gaming and Social Networks – a symbiotic relationship: In the past three months, the Social Networks space has
garnered the highest number of financings (14), while the Gaming sector leads in total value of funding. The $400
million acquisition of Playfish skews the Gaming segment to the highest total financing (Figure 4). As many of the start-
ups receiving Gaming sector financing are specifically deployed on Social Network platforms, the two sectors have built
up somewhat of a symbiotic relationship.
Capital Market Activity by Sector - Last Three Months
450.0
400.0
350.0
300.0
250.0
(US$m)
200.0
150.0
100.0
50.0
393.5 217.5 183.8 165.5 124.4 73.0 60.6 56.8 54.6 53.7 46.6 41.8 25.7 25.0 24.5 18.0 16.8 16.0 15.0 14.6 13.2 12.5 11.9 11.3
0.0
Mobile Payment
Social Commerce
Internet Retail
Gaming
Mobile
Media
Microblog
Enterprise
Online Learning
Music
Financial Services
SMS/Voice
Search
Mobile Ad
Location-based
Infrastructure
Social Networks
Virtual Goods
Advertising
Video
Crowdsourced
Aggregation
Virtual World
Analytics
Content
SNS
# companies
9 3 10 6 14 8 7 6 3 3 5 5 5 1 3 4 4 1 1 2 5 1 4 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
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
2/1/2010
2/15/2010
Index: Web 2.0 (Market Cap) ^COMP - Share Pricing
Figure 5. Web 2.0 Price Performance

Source. Capital IQ
Page 7
Bullish week for Web 2.0: Twenty-seven companies in our universe had positive stock price performances (averaging
+9.2%) over the past week (for stocks with prices greater than $1) (Figure 6), while 10 companies showed negative 1-
week returns (averaging -3.5%).
1 Week P rice P erformance

V elti Plc 64.5%
Quepas a Corp. 28.7%
A Q Interactiv e, Inc. 24.9%
G ree, Inc. 15.8%
TheS treet.com, Inc. 15.3%
Mix i, Inc. 12.3%
Fluid Mus ic Canada , Inc. 11.6%
K ings oft Corporation Limited 8.2%
G ameOn Co Ltd. 7.9%
CDC Corp. 7.8%
IA C/InterA ctiveCorp. 5.4%
NetDragon WebS of t, Inc. 5.0%
V alueClick, Inc. 4.8%
G ravity Co., Ltd 4.8%
The9 Limited 4.5%
Tencent Holdings Ltd. 3.7%
Openw ave S y s tems Inc. 3.5%
S hutterf ly , Inc. 3.3%
Modern Times G roup Mtg A B 3.1%
Ngi G roup Inc. 2.9%
S ohu.com Inc. 2.7%
Neteas e.com Inc. 2.3%
Tree.Com, Inc. 2.0%
Giant Interactive G roup, Inc. 1.6%
Gamania Digital Entertainment Co., 0.5%
Open Tex t Corp. 0.3%
Changy ou.com Limited 0.1%
United Online, Inc. 0.0%
PNI Digital Media Inc. 0.0%
My riad Group A G 0.0%
Frogs ter Interactiv e Pictures A G -0.2%
OA O R B C Information S y s tems -0.6%
XING A G -1.0%
G igaMedia Ltd. -1.4%
A s knet A G -1.4%
S park Netw orks , Inc. -1.7%
DA DA S pA -2.8%
Chines e Gamer International -5.8%
Perfect World Co., Ltd. -6.6%
S handa Interactive Entertainment Ltd. -13.6%
-0.2 -0.1 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7
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
Neteas e.c om Inc. (Nas daqG S : NTE S ) Netea s e. C om Inc. to La unch W orld of W a rcra ft Netea s e. com Inc. announced that it will roll out the W ra th of the Lich K ing, the s econd expa ns ion pack for W orld of
E xpa ns ion P a ck E a rly W a rcra ft, a s s oon as pos s ible a fter ha ving ga ined operating a pprova l for the firs t W oW expans ion pa ck during the country's
S pring F es tiva l. W oW is a n interna tiona lly a cclaimed mas s ive multiplayer online role-pla ying ga me which boa s ts nea rly five
million ga mers in C hina . It wa s crea ted by the B lizza rd E nterta inment.
DigitalP os t Interactive, Inc. L ucidiom L a unches F a mily W ebs ite P la tform DigitalP os t Intera ctive, Inc. a nnounced the la unch of www. F a milyP hotoZoo. com through a partners hip with Lucidiom Inc.
(OTC B B : DG L P ) T hrough P a rtners hip with DigitalP os t W ith the a ddition of DigitalP os t to the Lucidiom P hoto F ina le platform, us ers ca n eas ily create their own F a mily P hoto Zoo
Intera ctive webs ite from photos s tored on P hoto F ina le. W ith a few clicks , the us er can have a robus t s ocia l networking s ite des igned
to be s ha red by fa mily members . T he F a mily P hoto Zoo s ite is complete with a mes s a ge board, fa mily tree, news letter and
video uploa ds . T he us er may pa s s word-protect her s ite a s well.
F onds de s olidarité FTQ; G es c a Digital O pen T ext C orp. (Na s da qG S : OT E X) s igned a Open T ext C orp. (Na s daqG S : O T E X ) s igned a definitive a greement to a cquire Ns tein T echnologies Inc. (T S XV : E IN) for
Inves tments L td; G iraffe C apital; J L A definitive agreement to a cquire Ns tein C AD 33. 9 million on F ebruary 22, 2010. T he trans a ction cons ideration cons is ts of C AD 0. 65 to be pa id per s ha re in ca s h
Ventures ; Ns tein Tec hnologies Inc . T echnologies Inc. (T S X V : E IN) for C AD 33. 9 unles s certain eligible s ha reholders otherwis e elect to receive a fra ction of a n O pen T ext T S X tra ded common s ha re ha ving
(TS XV: E IN); Open Text C orp. million. a va lue of C AD 0. 65. T he tra ns a ction is s ubject to approva l of two-thirds of s ha reholders of Ns tein and a pplica ble regula tory
(Nas daqG S : OTE X); Viavar C apital Inc. and s tock excha nge a pprovals . T he directors a nd officers of Ns tein, and certa in s hareholders of Ns tein owning 48% of the
is s ued a nd outs ta nding s ha res of Ns tein ha ve a greed to enter into voting agreements with O pen T ext to vote in fa vor of the
ama lga mation. T he trans a ction is expected to clos e in the s econd calendar qua rter of 2010. P a gemill P a rtners L . L . P . a cted
as fa irnes s opinion provider for Ns tein.
Modern Times G roup Mtg AB (OM: MTG Modern T imes G roup Mtg AB (O M: MT G B ) Modern T imes G roup Mtg AB (O M: MT G B ) s igned a n agreement to acquire additional 35% s ta ke in V ia s a t Ukra ine from
B ); S trong Media G roup L td.; Vias at s igned an a greement to a cquire a dditiona l S trong Media G roup L td. in ca s h on F ebruary 22, 2010. T he fina ncia l terms of the dea l were not dis clos ed. T he tra ns a ction
Ukraine 35% s ta ke in V ia s a t Ukra ine from S trong is s ubject to a pprova l by the releva nt regulatory authorities a nd is expected to clos e during the s econd quarter of 2010.
Media G roup L td.
S pec trumDNA, Inc . (OTC B B : S P XA) S pectrumDNA, Inc. Amends C ertifica te of S pectrumDNA, Inc. announced that purs uant to a C ertifica te of Amendment to its C ertifica te of Incorpora tion filed with the
Incorpora tion S ta te of Dela wa re on F ebruary 16, 2010, the number of its a uthorized s ha res of common S tock, pa r va lue $0. 001 per
s hare, has been increa s ed from 100, 000, 000 to 250, 000, 000. T he C a pita liza tion Amendment was a pproved by the B oa rd of
Directors a long with requis ite s tockholder cons ent.
Tree.C om, Inc . (Nas daqG M: TR E E ) T ree. C om Unveils L ong-Awa ited S tra tegic T ree. com, Inc. a nnounced a new s tra tegic initiative tha t the C ompa ny expects to cha nge the wa y cons umers a nd
Initia tive bus ines s es intera ct online when it comes to finding res ources for life's mos t important financial decis ions . C ha irma n a nd
C E O Doug L ebda , s pea king exclus ively to bus ines s and marketing leaders a t L ea ds C on La s V egas , ga ve a n introduction to
T ree. com, which is expected to la unch in s econd qua rter 2010. W ith the new T ree. com, the C ompany intends to leverage
the proven model it introduced with L endingT ree. com, which paired a 'revers e ma rketplace' with relia ble information a nd
s upport for making educa ted choices a bout home loa ns . R ecognized a s a trus ted cons umer res ource, the C ompany s a w a n
opportunity to s tep in where typica l s ea rch engines fa ll s hort, offering guida nce for other complex purchas es tha t require
ca reful cons idera tion. T ree. com is a nticipa ted to extend the s a me robus t infra s tructure, cons umer-friendly interfa ce, a nd
dependable ins ight to deliver a hub of content and res ources a round every ma jor ‘cons idered purcha s e’ in life - from finding
a college a nd a ca reer, to buying a car
and a hous e, to pla nning for hea lth a nd retirement. O nce la unched, the C ompany expects tha t cons umers will be a ble
to acces s vendor pricing and quotes alongs ide pers ona lized advice, intera ctive tools for compa ris on s hopping, a
community with blogs , ratings , a nd reviews , a rticles with us eful tips a nd ins ights , a nd more - a ll through a free, s ecure,
and anonymous profile.
W ebzen Inc . (K OS E : A069080) W ebzen Inc. R eports E arnings R es ults for the W ebzen Inc. reported earnings res ults for the yea r ended December 31, 2009. F or the yea r, the compa ny ha s pos ted
Y ea r E nded December 31, 2009; P ropos es to revenue of K R W 27, 802, 307, 596 compa red to K R W 28, 481, 064, 580 for the s ame period a year a go. Opera tion los s wa s
Amend the Articles of Incorpora tion K R W 1, 546, 231, 108 compa red to K R W 7, 046, 263, 810 for the s a me period a yea r ago. Net income before income ta xes
were K R W 1, 373, 022, 785 compa red to net los s before income ta xes of K R W 13, 464, 277, 296 for the s a me period a year
ago. Net income was K R W 318, 229, 538 compa red to net los s of K R W 14, 265, 624, 646 for the s ame period a year a go.
T he compa ny a ls o announced that a t its AG M on March 26, 2010, the s ha reholders will propos e to amend the Articles of
Incorpora tion.
United Online, Inc . (Nas daqG S : UNTD) United Online, Inc. has filed a S helf United O nline, Inc. ha s filed a S helf R egis tra tion in the amount of $20. 00 million.
R egis tration in the a mount of $20. 00 million.
Figure 7a. Key Developments

Source. Capital IQ
Page 9
K ey Developments
is eemedia Inc . (TS XV: IE E ); Multiplied is eemedia Inc. (T S XV : IE E ) a cquired a n is eemedia Inc. (T S XV : IE E ) acquired a n unknown minority s ta ke in UnoMobi Inc. from E lie Ma khoul for C AD 0. 47 million in
Media C orporation unknown minority s take in UnoMobi Inc. from s tock on F ebruary 23, 2010. As cons idera tion, is eemedia is s ued 2. 7 million of its s ha res out of treas ury. Is eemedia
E lie Ma khoul for C AD 0. 47 million. acquired 0. 08 million UnoMobi s ha res for a tota l holding of 0. 14 million s ha res of UnoMobi. E lie Ma khoul is is eemedia 's
C hief T echnology O fficer. T he dea l wa s s ubject to the completion of Multiplied Media C orpora tion (T S X: V -MMC ) a cquis ition
of UnoMobi. In a ccordance with the terms of the a cquis ition of UnoMobi, is eemedia will receive a pproxima tely 7. 4 million
s hares of MMC in exchange for its 0. 14 million common s ha res of UnoMobi.
is eemedia Inc. (T S XV : IE E ) completed the acquis ition of a n unknown minority s take in UnoMobi Inc. from E lie Ma khoul on
F ebruary 23, 2010.
Tree.C om, Inc . (Nas daqG M: TR E E ) T ree. C om, Inc. P res ents at Lea ds C on L a s T ree. C om, Inc. P res ents a t L eads C on L as V ega s 2010, F eb-23-2010. V enue: T he Mira ge Hotel & C a s ino, L as V ega s ,
V ega s 2010, F eb-23-2010 United S ta tes . S peakers : Douglas R . L ebda , C ha irma n and C hief E xecutive O fficer.
Dolphin Digital Media, Inc. Dolphin Digita l Media , Inc. P res ents at Dolphin Digita l Media , Inc. P res ents a t R edC hip S mall-C a p E quities V irtua l C onference, F eb-23-2010 through F eb-24-2010.
(OTC B B : DPDM) R edC hip S ma ll-C ap E quities V irtual S peakers : B ill O 'Dowd.
C onference, F eb-23-2010 through F eb-24-
2010
B etawave C orporation (OTC B B : B W AV) B eta wa ve C orpora tion E nters into S econd On F ebruary 22, 2010, B eta wa ve C orpora tion and S ilicon V a lley B a nk entered into a s econd a mendment to a mended a nd
Amendments to Amended a nd R es tated L oan res ta ted loan a nd s ecurity agreement. T he amendment a mends the a mended a nd res ta ted loan a nd s ecurity agreement,
a nd S ecurity Agreement da ted as of November 25, 2009, between the compa ny a nd S V B to, a mong other things , extend the ma turity date of the
A& R loa n a greement from Ma rch 1, 2010 to April 1, 2010. T his s econd a mendment to a mended and res ta ted loa n and
s ecurity agreement is entered into this 22nd day of F ebruary, 2010, by and between S ilicon V a lley B a nk a nd B eta wa ve
C orpora tion. T he ba nk a nd borrower have entered into the a mended a nd res ta ted loa n a nd s ecurity a greement, da ted a s of
November 25, 2009, a s a mended by tha t certain firs t a mendment to a mended a nd res ta ted loan a nd s ecurity agreement
da ted as of J anuary 26, 2010. T he bank ha s extended credit to borrower for the purpos es permitted in the loa n a greement.
B orrower has reques ted a n extens ion of the ma turity da te. B ank ha s agreed to s uch reques t, but only to the extent, in
accorda nce with the terms , s ubject to the conditions a nd in relia nce upon the repres entations a nd wa rra nties . T he compa ny a nnounc
fee da te is Ma rch 27, 2010. T he limita tions which are amendments s et forth in S ection 2 above a re effective for the
purpos es s et forth herein a nd s hall be limited precis ely a s written a nd s ha ll not be deemed to be a cons ent to any
amendment, waiver or modifica tion of a ny other term or condition of any T ra ns action Document, or otherwis e
prejudice a ny right or remedy which B ank ma y now ha ve or may ha ve in the future under or in connection with a ny
T rans a ction Document. T his Amendment s ha ll be cons trued in connection with a nd as part of the T ra ns a ction
Documents a nd a ll terms , conditions , repres enta tions , wa rra nties , covenants a nd a greements s et forth in the
T rans a ction Documents , except a s herein a mended, a re hereby ra tified a nd confirmed a nd s hall remain in full force
and effect.
Unilava C orporation (OTC B B : UNL A) Unila va C orpora tion Announces the Availa bility Unilava C orporation a nnounced the a vailability of the 3G US B P orta ble La ptop S tick, B roadband B ullet, offering bus ines s
of the 3g US B P orta ble L a ptop S tick, cus tomers s eamles s connectivity to the Internet from their laptop while on the go via nationwide a nd interna tional 3G
B roadband B ullet wireles s broa dba nd s ervice in over 120 countries . T he C ompa ny ha s already pre-s old the B roa dba nd B ullet through its
s a les a nd dis tribution cha nnels . T he B roa dba nd B ullet a llows cus tomers with a la ptop to ta ke a dva ntage of fa s ter
broa dba nd s peeds a va ila ble through indus try s tandards 3G a nd 3G + high-s peed da ta network (HS P A a nd HS P A+) with
connection s peed of up to 7. 2Mbps a nd 12Mbps , res pectively. C us tomers s imply plug the B roa dba nd B ullet laptop s tick into
their la ptop a nd the built-in s oftware automatica lly finds the bes t ava ila ble Internet connection. T he B roadband B ullet is als o
an innova tive 2-in-1 device that allows the cus tomer to connect to the web a nd us e as a memory s tick with a Micro-S D ca rd
s lot, allowing up to 8G B of s tora ge. Unlike other providers , the B roa dba nd B ullet does not require a contra ct a nd the s ervice
is prepa id. T he monthly pla ns a re competitive, offering 5G B da ta us a ge for $50 per month a nd unlimited data us age for $60 per mon
an 'E quipment R eimburs ement' program towa rds the la ptop s tick to eliminate the equipment cos ts , which ma kes the
device pra ctica lly free for the cus tomer.
IAC /InterActiveC orp. (Nas daqG S : IAC I) IAC /InterActiveC orp. P res ents at G oldma n IAC /InterActiveC orp. P res ents a t G oldman S a chs T echnology & Internet C onference 2010, F eb-24-2010. V enue: W es tin S t.
S achs T echnology & Internet C onference F rancis Hotel, 335 P owell S treet, S an F ra ncis co, C a lifornia, United S ta tes . S peakers : B arry Diller, C ha irma n, C hief
2010, F eb-24-2010 E xecutive O fficer a nd Member of E xecutive C ommittee.
Neteas e.c om Inc. (Nas daqG S : NTE S ) Netea s e. com Inc. Announces Unaudited Netea s e. com Inc. announced una udited cons olida ted earnings res ults for the fourth quarter and yea r ended December 31,
C ons olida ted E arnings R es ults for the F ourth 2009. F or the qua rter, the compa ny's total revenues were R MB 1. 3 billion, compared to R MB 879. 4 million and R MB 801. 7
Q ua rter a nd Y ear E nded December 31, 2009 million for the preceding quarter and the fourth qua rter of 2008, res pectively. Net income a ttributable to the compa ny's
s hareholders for the qua rter wa s R MB 571. 8 million or R MB 0. 18 per diluted s ha re, compa red to R MB 393. 8 million or R MB
0. 12 per diluted s hare and R MB 575. 9 million or R MB 0. 18 per diluted s ha re for the preceding qua rter and the fourth qua rter
of 2008, res pectively. O pera ting profit was R MB 607. 1 million compared with R MB 470. 5 million a yea r ago. Net income
before ta x wa s R MB 629. 4 million compa red with R MB 495. 9 million a yea r a go. Net ca s h provided by opera ting a ctivities
was R MB 712. 4 million compared with R MB 514. 0 million a yea r ago. T he compa ny reported purcha s e of property,
equipment a nd s oftwa re wa s R MB 54. 1 million compa red with R MB 47. 9 million a yea r ago. E a rnings per ADS , diluted were
R MB 4. 46 a ga ins t E MB 3. 02 la s t yea r.
United Online, Inc . (Nas daqG S : UNTD) United Online, Inc. P res ents at G oldma n United O nline, Inc. P res ents a t G oldma n S achs T echnology & Internet C onference 2010, F eb-24-2010. V enue: W es tin S t.
S achs T echnology & Internet C onference F rancis Hotel, 335 P owell S treet, S an F ra ncis co, C a lifornia, United S ta tes . S peakers : Ma rk R . G olds ton, C hairman, C hief
2010, F eb-24-2010 E xecutive O fficer, P res ident a nd Member of S econda ry C ompens a tion C ommittee, S cott H. R ay, C hief F ina ncia l O fficer
and E xecutive V ice P res ident.
Figure 7b. Key Developments
Source. Capital IQ
Page 10
K ey Developments
ValueC lick, Inc . (Nas daqG S : VC L K ) V alueC lick, Inc. P res ents at G oldma n S a chs V a lueC lick, Inc. P res ents a t G oldman S a chs T echnology & Internet C onference 2010, F eb-24-2010. V enue: W es tin S t.
T echnology & Internet C onference 2010, F eb- F rancis Hotel, 335 P owell S treet, S an F ra ncis co, C a lifornia, United S ta tes .
24-2010
S hutterfly, Inc . (Nas daqG S : S F L Y) S hutterfly, Inc. P res ents a t G oldman S achs S hutterfly, Inc. P res ents a t G oldma n S a chs T echnology & Internet C onference 2010, F eb-24-2010. V enue: W es tin S t.
T echnology & Internet C onference 2010, F eb- F rancis Hotel, 335 P owell S treet, S an F ra ncis co, C a lifornia, United S ta tes . S peakers : J effrey T . Hous enbold, C hief
24-2010 E xecutive O fficer, P res ident a nd Director.
Dolphin Digital Media, Inc. Dolphin Digita l Media Announces Ma c Dolphin Digita l Media , Inc. is delighted to announce tha t the compa ny's s igna ture product, Dolphin S ecure, will be
(OTC B B : DPDM) C ompa tibility for Dolphin S ecure by E nd of compa tible with Mac computers by the end of the firs t quarter. C urrently Dolphin S ecure is a va ila ble for P C computers
F irs t Q uarter running W indow's XP , V is ta , or 7.
S hutterfly, Inc . (Nas daqG S : S F L Y) S hutterfly, Inc. P res ents a t E T ail W es t 2010, S hutterfly, Inc. P res ents a t E T a il W es t 2010, F eb-25-2010 through F eb-25-2010. V enue: J W Ma rriott Des ert S prings , 74855
F eb-25-2010 through F eb-25-2010 C ountry C lub Drive, P a lm Des ert, C A 92260, United S tates . S pea kers : P eter C . E la rde, C hief Ma rketing O fficer a nd S enior
V ice P res ident.
S hutterfly, Inc . (Nas daqG S : S F L Y) S hutterfly, Inc. P res ents a t E T ail 2010 Mobile S hutterfly, Inc. P res ents a t E T a il 2010 Mobile C ommerce & S ocial Media S ummit, F eb-25-2010. V enue: J W Marriott Des ert
C ommerce & S ocia l Media S ummit, F eb-25- S prings , 74855 C ountry C lub Drive, P alm Des ert, C A 92260, United S ta tes . S pea kers : P eter C . E la rde, C hief Ma rketing
2010 Officer a nd S enior V ice P res ident.
Velti P lc (AIM: VE L ) V elti plc Appoints Mike W a ls h a s V ice- Mike W als h, the former cha irma n of O gilvy UK group, has V elti P lc a s its vice-pres ident of bus ines s development. W als h,
P res ident of B us ines s Development who ha s more tha n 30 yea rs of experience working in the a d indus try, including ten yea rs a s the chief executive of O gilvy &
Mather E ME A, will be res pons ible for educa ting agencies a nd brands on V elti's offering, and a dvis ing them on how they ca n
integra te the mobile channel into their a d ca mpa igns .
S ocialwis e, Inc . (OTC B B : S C L W) S ocia lwis e, Inc. Announces R elea s e of S ocialwis e, Inc. a nnounced the relea s e of vers ion 2. 0 of its online teen pa yment s olutions s ite, B illMyP a rents . B illMyP a rents
V ers ion 2. 0 of O nline T een P a yment S olutions ha s s ignificantly upgra ded its previous ca pa bilities giving teens the freedom to s hop online (s ubject to parent-directed
S ite, B illMyP a rents controls ) a nd ha s a dded a Ma s terC a rd(R ) prepaid ca rd payment s olution tha t ca n be us ed for purcha s es everywhere
Mas terC a rd(R ) is accepted. In a ddition to removing obs ta cles to online commerce (cited by 40% of teens s urveyed),
B illMyP a rents ' prepa id ca rd s olution removes the ha zards a s s ocia ted with ca rrying ca s h. B illMyP a rents a ls o ma inta ins
pa rents ' credit card numbers a nd other pers ona l informa tion s ecurely, a nd offers the following unique a dva nta ges :
C omplete pa renta l vis ibility of teen account activity through immediate text notifica tion of card purchas e activity; P a rental
ability to ins ta ntly freeze and unfreeze a ca rd; Low card-rela ted cos ts including no purcha s e tra ns a ction fees ; and P arenta l
ability to tra ns fer emergency funds in rea l time to a teen's ca rd.
K ings oft C orporation L imited K ings oft C orporation L imited Announces K ings oft C orpora tion L imited announced s everal cha nges to its s enior mana gement tea m. T he company tha t W u Y imin,
(S E HK : 3888) Ma na gement C ha nges former genera l ma na ger of S ha nda G a mes L td. , has been a ppointed as pres ident of K ings oft's online ga mes depa rtment.
Mea nwhile, W ang Xin, former vice pres ident of K ings oft's Internet s ecurity divis ion, ha s been a ppointed a s chief executive
officer of the compa ny's a nti-virus s oftwa re bus ines s . J ia L in ha s been a ppointed adminis tra tive deputy general ma nager of
K ings oft's P owerW ord s oftwa re bus ines s .
S handa Interac tive E ntertainment L td. S ha nda Intera ctive E ntertainment Ltd. R eports S ha nda Intera ctive E nterta inment L td. reported una udited cons olida ted earnings res ults for the fourth qua rter and full year
(Nas daqG S : S NDA) Una udited C ons olida ted E a rnings R es ults for ended December 31 2009. C ons olidated net revenues increas ed 49% yea r-over-yea r and 9% qua rter-over-qua rter to C NY
the F ourth Q ua rter and F ull Y ea r E nded 1, 513. 5 million (US D 221. 6 million). Non-G AAP opera ting income increa s ed 43% yea r-over-yea r and 3% qua rter-over-
December 31 2009 qua rter to C NY 612. 2 million (US D 89. 6 million). Non-G AAP net income a ttributable to ordina ry s ha reholders increas ed
24% yea r-over-yea r and decrea s ed 19% qua rter-over-quarter to C NY 422. 0 million (US D 61. 8 million). Non-G AAP ea rnings
per diluted ADS were C NY 6. 06 (US D 0. 88), compared with C NY 4. 90 in the fourth quarter of 2008 a nd C NY 7. 40 in the
third qua rter of 2009. O pera ting income for the fourth qua rter of 2009 wa s C NY 559. 5 million (US D 81. 9 million), a n
increa s e of 35% from C NY 413. 1 million in the fourth qua rter of 2008 a nd a n increa s e of 10% from C NY 510. 7 million in the
third qua rter of 2009. O pera ting ma rgin was 37. 0% in the fourth quarter of 2009, compa red with 40. 7% in the fourth qua rter
of 2008 and 36. 9% in the third qua rter of 2009. Non-G AAP opera ting margin was 40. 4% in the fourth qua rter of 2009, compa red with
in the third qua rter of 2009. Net income a ttributa ble to ordinary s hareholders for the fourth qua rter of 2009 wa s C NY
369. 3 million (US D 54. 1 million), a n increa s e of 13% from C NY 326. 5 million in the fourth quarter of 2008 a nd a
decrea s e of 15% from C NY 435. 3 million in the third qua rter of 2009. E arnings per diluted ADS in the fourth qua rter of
2009 were C NY 5. 30 (US D 0. 78), compared with C NY 4. 70 in the fourth qua rter of 2008 a nd C NY 6. 18 in the third
qua rter of 2009. T he qua rter-over-quarter difference wa s prima rily due to the difference in net income a ttributa ble to
non-controlling interes ts between the fourth qua rter in 2009 and the third quarter in 2009. Income before income tax
expens es , equity in ea rning of a ffilia tes wa s C NY 642. 0 million aga ins t C NY 422. 5 million for the s a me quarter a year
ago period.
P erfec t World C o., L td. P erfect W orld C o. , L td. R eports Una udited P erfect W orld C o. , L td. reported una udited cons olida ted ea rnings res ults for the fourth quarter a nd full year ended
(Nas daqG S : P WR D) C ons olida ted E arnings R es ults for the F ourth December 31, 2009. F or the qua rter, the compa ny's total revenues were R MB 607. 9 million (US D 89. 1 million), a n increa s e
Q ua rter a nd F ull Y ea r E nded December 31, of 3. 0% , or R MB 17. 9 million, from R MB 590. 0 million in third qua rter 2009, a nd a n increa s e of 45. 5% , or R MB 190. 1
2009; P rovides R evenue G uidance for the F irs t million, from R MB 417. 8 million in fourth qua rter 2008. O perating profit wa s R MB 276. 5 million (US D 40. 5 million), a s
Q ua rter of F is ca l 2010 compa red to R MB 297. 7 million in third qua rter of 2009 and R MB 149. 5 million in fourth qua rter of 2008. Non-G AAP
opera ting profit was R MB 298. 5 million (US D 43. 7 million), as compa red to R MB 317. 9 million in third qua rter 2009 a nd
R MB 244. 7 million in fourth qua rter 2008. Net income a ttributa ble to the compa ny's s hareholders was R MB 270. 8 million
(US D39. 7 million), as compared to R MB 288. 3 million in third quarter 2009 a nd R MB 124. 8 million in fourth qua rter 2008.
Non-G AAP net income attributa ble to the compa ny's s hareholders was R MB 292. 8 million (US D 42. 9 million), as compa red
to R MB 308. 5 million in third quarter 2009 a nd R MB 220. 0 million in fourth quarter 2008. B a s ic a nd diluted earnings per ADS
B a s ed on the company's current opera tions , tota l revenues for the firs t quarter of 2010 are expected to be between
R MB 620 million a nd R MB 644 million, repres enting a n increa s e of 2% to 6% on a s equentia l ba s is a nd a n increa s e
of 46% to 51% on a year-over-yea r bas is . T his reflects expected growth from the compa ny's exis ting games .
Figure 7c. Key Developments

Source. Capital IQ
Page 11
Valuation
Gaming companies lead market-cap charts: Twelve companies in our Web 2.0 universe top US$1 billion in market
capitalization (Figure 8). Sixty-two of the 97 companies have market caps under US$100 million, with 42 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$36.4 billion.
Market C ap ($US mm)

Tencent Holdings Ltd. 36425.1
Neteas e.com Inc. 4961.9
Modern Times Group Mtg A B 3715.5
Gree, Inc. 2878.4
Open Tex t Corp. 2727.2
S handa Interactive Entertainment Ltd. 2724.5
IA C/InterA ctiveCorp. 2689.0
S ohu.com Inc. 1933.7
Changy ou.com Limited 1812.8
Perf ect World Co., Ltd. 1785.8
Giant Interactive Group, Inc. 1717.0
Mix i, Inc. 1009.9
K ings of t Corporation Limited 932.7
V alueClick, Inc. 813.6
Chines e G amer International 804.9
NEOWIZ G ames Corporation 620.3
United Online, Inc. 542.9
S K Communications Co., Ltd. 536.6
S hutterfly , Inc. 524.2
NetDragon WebS oft, Inc. 313.2
G ungHo Online Entertainment, Inc. 268.1
CDC Corp. 264.0
G amania Digital Entertainment Co., Ltd. 229.1
Openw ave S y s tems Inc. 224.5
XING A G 193.4
My riad G roup A G 191.7
V elti Plc 185.0
The9 Limited 176.0
OA O R B C Inf ormation S y s tems 166.4
GigaMedia Ltd. 158.1
W ebz en Inc. 130.8
TheS treet.com, Inc. 109.4
A ctoz S oft Co., Ltd. 109.4
DA DA S pA 106.8
Fluid Mus ic Canada, Inc. 104.6
Tree.Com, Inc. 93.6
Y D Online Corp. 85.3
A Q Interactive, Inc. 83.9
G ameOn Co Ltd. 74.1
HanbitS oft, Inc. 71.0
Frogs ter Interactive Pictures A G 69.2
S park Netw orks , Inc. 60.7
Cy berplex Inc. 60.1
Ngi Group Inc. 60.0
G ravity Co., Ltd 56.8
PNI Digital Media Inc. 56.5
NeuLion Incorporated 55.9
Quepas a Corp. 50.8
G eoS entric Oy j 48.5
Multiplied Media Corporation, Prior to R evers e Merger w DXN ith R ewHoldings
ard Phone B hd 45.0
36.1
International Inc. DigitalTow n, Inc. 34.3
Unilava Corporation 33.5
NeX plore Corporation 33.5
Neurotech Pharmaceuticals Co., Ltd. 30.3
S ocialw is e, Inc. 24.2
A s knet A G 24.2
Dolphin Digital Media, Inc. 19.9
Y nk K orea Inc. 19.2
W iz z ard S oftw are Corporation 17.6
LookS mart, Ltd. 16.3
A cceleriz e New Media, Inc. 15.8
Northgate Technologies Limited 14.8
En2Go International, Inc. 14.4
J umbuck Entertainment Limited 13.2
Lingo Media Corporation 11.2
MOK O.mobi Limited 10.1
is eemedia Inc. 9.6
S ahara Media Holdings , Inc. 9.3
V OIS , Inc. 9.0
Oriented Media Group B erhad 8.5
B right Things plc 8.2
R eal V alue Es tates , Inc. 7.7
K ent International Holdings Inc. 5.9
S NA P Interactive, Inc. 5.5
Magnitude Information S y s tems Inc. 5.5
Worlds .com Inc. 5.4
DigitalPos t Interactive, Inc. 5.2
S pectrumDNA , Inc. 4.6
CornerW orld Corporation 3.8
B etaw ave Corporation 3.8
B roadWebA s ia Inc. 3.4
Mobile Data Corp. 3.3
Unis erve Communications Corp. 2.8
UOMO Media, Inc 2.8
B igs tring Corp. 1.4
B ey ond Commerce, Inc. 1.4
eWorldCompanies , Inc. 0.9
W y nds torm Corporation 0.9
A s s ociated Media Holdings Inc. 0.9
S pry logics International Corp 0.7
We-R -Y ou Corp. 0.3
Cody V entures Corporation 0.1
The Parent Company 0.1
Is e B lu Equity Corp. 0.0
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
Page 12
TEV/Revenue (LTM) averages 5.5x: The overall average TEV/Revenue (LTM) multiple for our group is 5.5x (vs. 5.3x
last week) (Figure 9). Five companies trade above 25x revenue – Tencent Holdings Ltd. (SEHK:700) at 25.2x,
eWorldCompanies, Inc. (OTCPK:EWRC) at 30.3x, SpectrumDNA, Inc. (OTCBB:SPXA) at 33.0x, Bigstring Corp.
(OTCBB:BSGC) at 38.4x, and Bright Things plc (AIM:BGT) at 40.5x. The median is 1.7x. Note that we exclude multiples
greater than 50x. Twenty-four companies have multiples under 1.5x.
T E V/L T M R evenue (x)
14. 0
12.0
12. 0
10.5
10.1
10. 0
8.0
7.6
8. 0
6.4
6.1 6.2 6.2
5.9
6. 0 5.3
5.0 5.1
4.6
3.7
4. 0 3.1 3.1 3.2 3.4
2.7 2.8 2.9 2.9
2.5
2.1 2.1 2.2
1.9
1.6 1.7 1.8
2. 0 1.4 1.4 1.5 1.5 1.6 1.6
1.2 1.2 1.3
1.0 1.0 1.1 1.1
0.6 0.6 0.6 0.7 0.7 0.7 0.8 0.8 0.8 0.9
0.5 0.5 0.5
0.2 0.3 0.3 0.4 0.4 0.4
0.0 0.2 0.2
0. 0
NE O W IZ G ames C orporation
J umbuck E ntertainment L imited
U O MO Media , Inc
G ama nia Digita l E ntertainment C o., Ltd.
G ungHo O nline E ntertainment, Inc.
P NI Digita l Media Inc .
C hines e G amer International

U nis erve C ommunications C orp.
O AO R B C Information S ys tems
Northgate T ec hnologies Limited
DXN Holdings B hd
O riented Media G roup B erhad
C hangyou.c om Limited
G a meO n C o L td.
T ree.C om, Inc.
C DC C orp.
B ey ond C ommerc e, Inc.
S K C ommunications C o., L td.
Neurotech P ha rma ceuticals C o., L td.
Digita lP os t Interactiv e, Inc.

T he P a rent C ompa ny
Modern T imes G roup Mtg AB
G eoS entric O y j
S prylogics Internationa l C orp
NeuLion Inc orporated
Is e B lu E quity C orp.
T heS treet.com, Inc .

U nited O nline, Inc .
S NAP Interac tiv e, Inc .
O pen T ex t C orp.
C ornerW orld C orpora tion
Unilav a C orpora tion
L ingo Media C orpora tion

K ings oft C orpora tion L imited
C yberplex Inc.
G igaMedia Ltd.
IAC /InterAc tiv eC orp.

AQ Intera ctive, Inc.
S park Network s , Inc.
V a lueC lick , Inc.

Y D O nline C orp.
NetDragon W ebS oft, Inc.
S ohu.c om Inc.
is eemedia Inc.
Mix i, Inc.
G ree, Inc.
C ody V entures C orporation
XING AG
F rogs ter Interac tive P ic tures AG

Myria d G roup AG
P erfect World C o., L td.
We-R -Y ou C orp.
O penwav e S ys tems Inc.
HanbitS oft, Inc.
InternetArray , Inc.
Y nk K orea Inc.
Webz en Inc.
S oc ial Media V entures Inc.

B eta wave C orporation
V elti P lc
S hutterfly, Inc.
Acc eleriz e New Media, Inc.

DADA S pA
Actoz S oft C o., Ltd.
Wiz z ard S oftwa re C orpora tion

As k net AG
Figure 9. TEV/Revenue Ranking

Source. Capital IQ
TEV/Revenue (LTM) by country/exchange: We 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 (21), trading at an average multiple of 9.6x (vs. 11.1x last week). On a geographic basis, the United
States has the most companies (41), trading at an average of 6.6x revenue (vs. 6.3x last week) (Figure 11). Ten companies
are Canadian (average 2.9x revenue vs. 3.0x last week).
Average TEV/LTM Revenue - By Country

Average TEV/LTM Revenue - By Exchange 25.0
25.0 21.3
21.3
20.0
20.0
15.0 12.0 15.0

11.1 12.0
(x)
(x)
9.6 10.0 7.0

10.0 6.6 6.6
7.3 6.6
6.4 5.9 4.1 3.9 3.8
5.0 4.3 3.9 3.5 3.1 2.5 5.0
2.4 2.1 1.9 1.9 1.7 3.1
2.9 2.5 2.1 1.9
1.1 0.7 1.1 0.7
0.0 0.6 0.3 0.0 0.7 0.3
OTCPK
MICEX
OTCBB
GTSM
NasdaqGM
HLSE
SEHK
TSE
KOSE
OSE
NasdaqGS
OM
CM
TSX
XTRA
AMEX
KLSE
BSE
AIM
TSXV
SWX
ASX
Germany
Kingdom
Finland
China
United
Japan
Canada
Malaysia
Russia
Hong Kong
India
Italy
South
Korea
States
Australia
Taiwan
Switzerland
Sweden
United
# Companies 2 1 3 21 11 2 3 2 5 2 6 1 6 2 1 2 1 14 1 1 4 1
# Companies 2 1 10 41 2 3 2 6 1 10 7 1 2 1 1 1 1
Figures 10 & 11. TEV/Revenue Ranking (Exchange, Country)

Source. Capital IQ
Page 13
TEV/EBITDA (LTM) averages 11.4x: The average multiple for the 39 companies with positive EBITDA (and multiples
under 100x) is 11.4x LTM EBITDA (vs. 10.7x last week), led by Tencent Holdings Ltd. (SEHK:700) at 49.4x (Figure 12).
Twelve companies have EBITDA multiples under 7x. The median multiple is 9.3x (vs. 9.1x last week).
T E V/LT M E B IT DA (x)
60. 0
49. 4
50. 0
41.6
40. 0
30. 0 26. 9
20. 3
20. 0 17.2 18. 1
15. 5 15. 8
13. 9 14. 2
12. 0 13. 2
10. 5 10. 6 10. 7 10. 9 11. 7
8. 5 8.6 9. 1 9. 3 9. 4 9.5
10. 0 5.9 6. 1 6. 5 7. 2 7.5 8. 1 8. 2
5. 6 5. 7
4. 0
2. 6 3. 2 3. 7
0. 1 0. 5 0. 9
0. 0
NE O WIZ G ames C orporation

J umbuc k E ntertainment L imited
G amania Digital E ntertainment C o. , Ltd.
G ungH o O nline E ntertainment, Inc .
P NI Digital Media Inc .

U nis erve C ommunic ations C orp.
O AO R B C Information S y s tems
DXN H oldings B hd
C hangy ou. c om L imited

G ameO n C o L td.
T ree. C om, Inc .
Neurotec h P harmac eutic als C o. , L td.
C DC C orp.
S K C ommunic ations C o. , L td.

Modern T imes G roup Mtg AB
U nited O nline, Inc.
S NAP Interac tive, Inc.
O pen T ex t C orp.
T heS treet. c om, Inc.

K ings oft C orporation L imited
C y berplex Inc.
V alueC lic k , Inc.
S park Network s , Inc.
NetDragon WebS oft, Inc.
S ohu. com Inc.
Y D O nline C orp.
IAC /InterAc tiveC orp.
G ree, Inc.
Mix i, Inc.
T enc ent H oldings L td.

XING AG
P erfec t World C o. , L td.
O penwave S y s tems Inc.
Y nk K orea Inc.
V elti P lc
S hutterfly , Inc.
DADA S pA
Ac toz 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 (21), trading at an average multiple of 7.5x (vs. 8.1x last week). On a
geographic basis, the United States has the most companies (41), trading at an average of 10.7x EBITDA (vs. 9.5x last
week) (Figure 14). Ten companies are Canadian (average 8.3x EBITDA vs. 8.2x last week).
Average TEV/LTM EBITDA - By Country

Average TEV/LTM EBITDA - By Exchange
18.0
25.0 23.6
16.0 16.4
20.0 14.0 15.8
18.1 12.0 14.6
15.0 16.4 13.1
15.8 10.0 11.7 11.5 10.9
(x)
13.112.5
(x)
10.7
10.0 10.9 9.0 8.7 8.0 8.3
8.5 8.1
7.5 6.1 5.7 6.0 8.1
5.0 4.0 6.1
3.2 0.9
4.0
0.0 2.0 4.0 0.9
MICEX
OTCBB
NasdaqGM
GTSM
SEHK
KOSE
TSE
NasdaqGS
OSE
OM
CM
AMEX
KLSE
TSX
AIM
TSXV
ASX
0.0
Kingdom
China
Hong
Japan
United
Canada
Russia
Malaysia
Italy
South
Korea
Kong
States
Taiwan
Australia
Sweden
United
# Companies 3 4 6 1 2 5 2 6 14 1 1 21 1 2 2 3 2
# Companies 7 1 10 3 1 6 2 41 10 1 1 2 2
Figures 13 & 14. TEV/EBITDA Ranking (Exchange, Country)

Source. Capital IQ
Page 14
P/E (LTM) averages 23.1x: The average multiple for the 32 companies with positive earnings (and multiples under 100x)
is 23.1x LTM EPS (vs. 23.6x last week), led by Shutterfly, Inc. (NasdaqGS: SFLY) with a 92.7x multiple (Figure 15).
Twelve companies have P/E multiples under 10x. The median is 15.2x (vs. 15.4x last week).
P /E L T M (x)
100. 0
92. 7
90. 0
80. 0
68. 7
70. 0 63.1
60. 0 54.3
50.3
50. 0
41.4
40. 0 34.1
30.6 31.3
28.1
30. 0 23.9 24.4
20.1 20.4 22.1
20. 0 15.1 15.2
11.7 13.5 13.8
8. 0 8. 2 8. 8
10. 0 5. 2 5. 4 6. 2
1.8 1.9 2.2 2.7 3.6
0.0
0. 0
NE O WIZ G ames C orporation

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

G iant Interac tive G roup, Inc .
DXN Holdings B hd
G ameO n C o Ltd.
C hangy ou. c om Limited

G ravity C o., Ltd
S handa Interac tive E ntertainment Ltd.
Neteas e.c om Inc .
United O nline, Inc .
S N AP Interac tive, Inc .
O pen T ex t C orp.
C y berplex Inc .
G igaMedia Ltd.
Y D O nline C orp.
S ohu.c om Inc .
V alueC lic k , Inc .
NetDragon WebS oft, Inc .
S park Network s , Inc .
K ings oft C orporation Limited
G ree, Inc .
Mix i, Inc .
T enc ent Holdings Ltd.

X ING AG
P erfect World C o., Ltd.
HanbitS oft, Inc .

V elti P lc
S hutterfly , Inc.
Ac toz 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 (21), trading at an average multiple of 30.6x (vs. 32.4x last week). On a geographic basis,
the United States has the most companies (41), trading at an average of 33.1x earnings (vs. 32.8x last week) (Figure 17).
Ten companies are Canadian (average 14.7x EPS vs. 14.2x last week).
Average P/E - By Exchange Average P/E - By Country

40.0
60.0 36.7
50.3 35.0
50.0
30.0
33.1
40.0 38.4 28.8
32.9 32.1 25.0
23.3
30.6
(x)
30.0 22.1
(x)
24.2 22.1 20.0

18.2
20.0 20.1 19.4 15.0 14.7
10.0 5.4 5.2 3.6
1.9 10.0 5.4
0.0 3.6
0.0 5.0
OTCBB
GTSM
NasdaqGM
OSE
KOSE
SEHK
TSE
NasdaqGS
AMEX
KLSE
TSX
NYSE
AIM
ASX
0.0
Japan
United
Canada
Kingdom
China
Malaysia
South
Korea
States
Taiwan
Australia
United
# Companies 1 6 3 5 21 2 2 2 14 2 3 2 1 4
# Companies 6 41 7 10 2 3 10 2 2
Figures 16 & 17. P/E Ranking (Exchange, Country)

Source. Capital IQ
Page 15
Upcoming Events
E arnings C alendar
C ompany Date Time Quarter C onf C all Details
Spark Networks, Inc. (AMEX:LOV) 4-Mar-10 4:30 p.m. EDT Q4/09 888-601-3884
Giant Interactive Group, Inc. (NYSE:GA) 4-Mar-10 8:00 p.m. EDT Q4/09 866-272-9941
CDC Corp. (NasdaqGS:CHIN.A) 9-Mar-10 8:30 a.m. EDT Q4/09 888-603-6873
TheStreet.com, Inc. (NasdaqGM:TSCM) 15-Mar-10 5:00 p.m. EDT Q4/09 800-260-8140
Figure 18. Earnings Calendar

Source. Capital IQ
Page 16

P ric e P erformance
C ompany Name C urrency Ticker E xchange US D Market C ap ($m) C urrent P rice 1 Wk 1 Mth 3 Mth 6 Mth 1 Yr 52 Week
Accelerize New Media , Inc. US D AC LZ OT C B B 15.8 0.55 -3.5% -1. 8% 0.0% -3. 5% 150.0% -31. 3%
Actoz S oft C o., Ltd. KRW A052790 K OS E 109.4 14400.00 -4.6% -8. 0% -24.2% -25.6% 44. 7% -60. 0%
AQ Intera ctive, Inc. JPY 3838 TS E 83.9 138000.00 24. 9% 54.4% 244.6% 171.7% 332.6% -2.8%
As knet AG E UR XT R A :A5A XT R A 24.2 3.55 -1.4% 10.9% -3.5% 2.3% 16. 8% -13. 8%
As s ociated Media Holdings Inc. US D AS MH OT C P K 0.9 0.02 100.0% 100.0% -97.4% 42.9% 1328.6% -97. 4%
B eta wave C orporation US D B W AV OT C B B 3.8 0.13 8.3% -7. 1% 62. 5% 154.9% 8.3% -35. 0%
B eyond C ommerce, Inc. US D B Y OC OT C B B 1.4 0.02 -14.8% -8. 0% -42.5% -87.6% -95.4% -98. 8%
B igs tring C orp. US D BS GC OT C B B 1.4 0.02 -0.9% 0. 5% -24.1% -8. 3% 78. 9% -61. 4%
B right T hings plc GBP AIM:B G T AIM 8.2 0.02 9.7% 13.3% 38. 8% 23.6% 11. 1% -32. 0%
B roa dW ebAs ia Inc. US D BWBA OT C P K 3.4 0.04 -33.3% -33.3% -55.6% -82.6% -96.0% -96. 0%
C DC C orp. US D C HIN .A Nas daqG S 264.0 2.49 7.8% 7. 8% 1.2% 9.2% 227.7% -36. 5%
C ha ngyou.com L imited US D C Y OU Nas daqG S 1,812.8 32.96 0.1% -1. 9% -0.2% -12.5% NM -31. 9%
C hines e G a mer International TWD G T S M:3083 GTS M 804.9 307.00 -5.8% -8. 1% -28.8% -30.5% 119.3% -40. 8%
C ody V entures C orporation US D CVCP OT C P K 0.1 0.00 0.0% -25.0% 172.7% 3.4% 650.0% -72. 7%
C ornerW orld C orporation US D CWR L OT C B B 3.8 0.04 -20.0% 33.3% -20.0% -27.3% -73.3% -78. 9%
C yberplex Inc. C AD T S X: C X TS X 60.1 0.91 -9.0% -11.7% -26.0% -31.1% 160.0% -54. 3%
DADA S pA E UR C M: DA CM 106.8 4.88 -2.8% -7. 5% -21.5% -22.4% 1.6% -40. 4%
DigitalP os t Interactive, Inc. US D DG LP OT C B B 5.2 0.06 20. 2% 36.4% 20. 0% 9.1% 1400.0% -39. 4%
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 Digita l Media, Inc. US D DP DM OT C B B 19.9 0.35 2.9% 29.6% 25. 0% -23.9% -31.4% -53. 9%
DXN Holdings B hd MY R DXN K LS E 45.0 0.67 -4.3% -1. 5% 19. 6% 24.1% 103.0% -10. 7%
E n2G o International, Inc. US D E TGI OT C B B 14.4 0.60 50. 0% -33.3% -7.7% 71.4% -66.7% -88. 0%
Neurotech P harmaceuticals C o., Ltd. KRW A041060 K OS E 30.3 455.00 -13.3% -26.6% -22.9% -56.3% -12.5% -60. 8%
eW orldC ompa nies , Inc. US D EWRC OT C P K 0.9 0.00 100.0% 0. 0% -33.3% -80.0% 100.0% -94. 7%
F luid Mus ic C ana da, Inc. C AD T S X: F MN TS X 104.6 1.73 11. 6% 9. 5% -13.5% 23.6% 424.2% -19. 5%
F rogs ter Interactive P ictures AG E UR FR G XT R A 69.2 20.00 -0.2% 5. 3% 13. 6% 11.2% 442.0% -6.9%
G ama nia Digita l E ntertainment C o., Ltd. TWD 6180 GTS M 229.1 47.90 0.5% -10.3% 4.0% -5. 9% 103.0% -30. 4%
G ameOn C o L td. JPY 3812 TS E 74.1 68500.00 7.9% -2. 8% 11. 2% -33.9% -23.5% -48. 5%
G eoS entric Oyj E UR G E O1V HLS E 48.5 0.04 0.0% 0. 0% -20.0% 0.0% 0.0% -33. 3%
G iant Interactive G roup, Inc. US D GA NY S E 1,717.0 7.57 1.6% 3. 4% 6.0% 2.7% 6.0% -20. 9%
G iga Media Ltd. US D G IG M Nas daqG S 158.1 2.90 -1.4% 5. 8% -27.1% -36.1% -40.0% -59. 2%
G ra vity C o., Ltd US D GR VY Nas daqG M 56.8 2.04 4.8% 6. 4% 37. 1% 25.3% 219.2% -22. 3%
G ree, Inc. JPY T S E :3632 TS E 2,878.4 5690.00 15. 8% 8. 2% 24. 0% 39.1% 138.1% -5.8%
G ungHo Online E ntertainment, Inc. JPY 3765 OS E 268.1 209200.00 3.1% -6. 1% 47. 0% -11.2% 74. 2% -25. 3%
HanbitS oft, Inc. KRW A047080 K OS E 71.0 3760.00 -3.3% -6. 0% 6.8% -3. 6% 29. 7% -43. 4%
IA C /InterActiveC orp. US D IAC I Nas daqG S 2,689.0 23.07 5.4% 14.9% 18. 8% 25.9% 63. 5% 2.1%
InternetArray, Inc. US D INAR OT C P K 0.0 0.00 -20.0% -20.0% -50.0% -86.7% -98.5% -99. 2%
Is e B lu E quity C orp. US D IS B L OT C P K 0.0 0.00 0.0% 0. 0% 0.0% 0.0% 0.0% -90. 0%
is eemedia Inc. C AD IE E T S XV 9.6 0.19 8.6% 22.6% -5.0% 322.2% 137.5% -29. 6%
J umbuck E nterta inment L imited AUD AS X: J MB AS X 13.2 0.30 -3.2% -3. 2% -11.8% -26.8% -33.3% -40. 0%
K ent International Holdings Inc. US D K NT H OT C P K 5.9 1.65 -5.7% -8. 8% -17.5% -5. 7% -1.2% -32. 7%
K ings oft C orporation Limited HK D 3888 S E HK 932.7 6.60 8.2% 10.9% 13. 4% -22.0% 158.8% -30. 3%
Lingo Media C orporation C AD T S XV : LM T S XV 11.2 0.94 -3.1% -12.1% -2.1% -6. 0% 8.0% -40. 5%
LookS ma rt, Ltd. US D LOOK Nas daqG M 16.3 0.95 0.0% -3. 1% -11.2% -20.8% -3.1% -39. 1%
Magnitude Information S ys tems Inc. US D MAG Y OT C B B 5.5 0.01 -18.0% -12.1% -35.3% 89.2% -35.3% -68. 5%
Mixi, Inc. JPY 2121 TS E 1,009.9 584000.00 12. 3% -3. 9% -23.6% -1. 8% 77. 0% -32. 5%
Mobile Da ta C orp. US D MB Y L OT C B B 3.3 0.14 23. 9% -19.1% 52. 8% 52.8% -60.7% -65. 6%
Modern T imes G roup Mtg AB SEK MT G B OM 3,715.5 406.50 3.1% 19.0% 29. 1% 43.1% 250.4% -0.2%
MOK O.mobi Limited AUD MK B AS X 10.1 0.10 -17.4% -20.8% -20.8% 33.8% 111.1% -52. 5%
Multiplied Media C orporation, P rior to R evers e
Merger with R eward P hone Internationa l Inc. C AD T S XV : MMC T S XV 36.1 0.29 -5.0% 29.5% 62. 9% 58.3% 470.0% -8.1%
Myriad G roup AG C HF MY R N SWX 191.7 4.70 0.0% -1. 7% 0.0% 4.7% 23. 7% -24. 1%
NE OW IZ G ames C orporation KRW A095660 K OS E 620.3 34100.00 9.3% 1. 3% -13.7% 6.4% 118.2% -24. 1%
NetDragon W ebS oft, Inc. HK D 777 S E HK 313.2 4.60 5.0% 13.9% 7.2% -17.0% 55. 9% -35. 7%
Neteas e.com Inc. US D NT E S Nas daqG S 4,961.9 38.31 2.3% 16.8% -3.6% -7. 5% 82. 0% -21. 0%
NeuLion Incorporated C AD T S X: NLN TS X 55.9 0.50 -12.3% -25.4% -31.5% -55.4% 31. 6% -61. 5%
NeXplore C orporation US D NXP C OT C P K 33.5 0.60 -7.7% -14.3% -18.9% 9.1% -36.8% -36. 8%
Ngi G roup Inc. JPY 2497 TS E 60.0 43300.00 2.9% 57.2% 81. 2% 42.0% 143.3% -8.6%
Northgate T echnologies Limited INR 590057 BSE 14.8 19.60 -3.2% -17.8% -36.3% -49.2% -40.8% -67. 3%
OAO R B C Information S ys tems R UB R BCI MIC E X 166.4 35.98 -0.6% 2667.7% 2148.8% 3326. 7% 14292.0% -6.1%
Oriented Media G roup B erhad MY R OME DIA K LS E 8.5 0.22 0.0% 59.3% 79. 2% 168.8% 13. 2% -6.5%
Open T ext C orp. US D OT E X Nas daqG S 2,727.2 48.30 0.3% 22.5% 26. 1% 41.4% 61. 0% -1.0%
Openwave S ys tems Inc. US D OP W V Nas daqG S 224.5 2.68 3.5% 20.2% 13. 6% -2. 5% 255.0% -14. 4%
T he P arent C ompany US D K IDS .Q OT C P K 0.1 0.00 -70.0% -84.2% -57.1% -78.6% -70.0% -91. 4%
P erfect W orld C o., L td. US D PWRD Nas daqG S 1,785.8 35.89 -6.6% -3. 8% -20.4% -4. 8% 230.5% -28. 9%
P NI Digital Media Inc. C AD T S XV : P N T S XV 56.5 1.75 0.0% 2. 3% 5.4% 0.0% 9.4% -16. 7%
Quepas a C orp. US D QP S A OT C B B 50.8 3.99 28. 7% 35.3% 149.4% 185.0% 329.0% 7.8%
R ea l V alue E s tates , Inc. US D R V LU OT C B B 7.7 1.20 -20.0% -20.0% NM NM NM -20. 0%
S aha ra Media Holdings , Inc. US D S HHD OT C B B 9.3 0.30 -25.0% 20.0% -46.4% -90.0% -90.0% -90. 8%
S handa Interactive E ntertainment Ltd. US D S NDA Nas daqG S 2,724.5 40.51 -13.6% -12.3% -23.7% -18.8% 29. 6% -37. 7%
S hutterfly, Inc. US D S F LY Nas daqG S 524.2 20.23 3.3% 27.9% 34. 9% 46.8% 162.0% 1.2%
S K C ommunications C o., L td. KRW A066270 K OS E 536.6 14850.00 10. 4% 5. 7% 106.3% 59.0% 147.5% -19. 3%
S NAP Intera ctive, Inc. US D S TVI OT C B B 5.5 0.17 -5.6% -10.5% 155.0% 2.0% -46.3% -51. 4%
S ocia l Media V entures Inc. US D S MV I OT C P K 0.0 0.00 -21.6% -34.1% -70.1% -98.1% -99.8% -99. 8%
S ocia lwis e, Inc. US D S C LW OT C B B 24.2 0.50 11. 1% 0. 0% 0.0% -15.3% 25. 0% -51. 0%
S ohu.com Inc. US D S OHU Nas daqG S 1,933.7 51.20 2.7% 1. 7% -9.0% -15.3% 16. 4% -29. 2%
S park Networks , Inc. US D LOV AME X 60.7 2.95 -1.7% -0. 7% 25. 5% 26.6% 20. 9% -12. 5%
S pectrumDNA, Inc. US D S P XA OT C B B 4.6 0.10 -32.1% -36.7% -32.1% -56.8% -52.5% -78. 9%
S prylogics International C orp C AD T S XV : S P Y T S XV 0.7 0.03 100.0% 200.0% 200.0% 100.0% 50. 0% -50. 0%
T encent Holdings Ltd. HK D 700 S E HK 36,425.1 155.00 3.7% 6. 7% 5.7% 35.1% 233.3% -12. 2%
T he9 Limited US D NC T Y Nas daqG S 176.0 7.01 4.5% 2. 9% -9.8% -4. 6% -26.1% -57. 5%
T heS treet.com, Inc. US D TS CM Nas daqG M 109.4 3.47 15. 3% 9. 5% 50. 2% 43.4% 88. 6% -1.7%
T ree.C om, Inc. US D TR E E Nas daqG M 93.6 8.58 2.0% 17.4% 34. 9% 26.4% 116.1% -34. 4%
Unila va C orporation US D UNLA OT C B B 33.5 0.34 15. 5% 139.3% -39.1% NM NM -39. 1%
Unis erve C ommunications C orp. C AD T S XV : US S T S XV 2.8 0.12 20. 0% 33.3% 200.0% 166.7% 140.0% -14. 3%
United Online, Inc. US D UNT D Nas daqG S 542.9 6.39 0.0% 1. 1% -8.2% -7. 7% 57. 4% -32. 5%
UOMO Media, Inc US D UOMO OT C B B 2.8 0.03 -8.6% -20.0% -46.7% -77.1% -54.3% -97. 0%
V alueC lick, Inc. US D V C LK Nas daqG S 813.6 9.74 4.8% 5. 3% 1.2% -3. 8% 66. 8% -30. 1%
V elti P lc GBP VEL AIM 185.0 3.29 64. 5% 64.5% 68. 7% 98.8% 181.2% -1.5%
V OIS , Inc. US D V OIS OT C B B 9.0 0.01 0.0% -10.0% -33.3% 50.0% 38. 5% -60. 9%
W ebzen Inc. KRW K OS E :A069080 K OS E 130.8 12800.00 1.6% -4. 1% 28. 0% 2.8% 122.6% -38. 2%
W e-R -Y ou C orp. US D WERU OT C P K 0.3 0.01 -67.5% 225.0% -35.0% -83.3% -87.0% -96. 6%
W izzard S oftware C orporation US D W ZE AME X 17.6 0.33 -2.9% -2. 9% -21.4% -23.3% -25.0% -56. 8%
W orlds .com Inc. US D W DDD OT C B B 5.4 0.10 11. 1% 11.1% 0.0% -16.7% -28.6% -54. 5%
W ynds torm C orporation US D W Y ND OT C P K 0.9 0.05 0.0% -50.0% 25. 0% -50.0% -58.3% -90. 2%
XING AG E UR O1B C XT R A 193.4 27.59 -1.0% -3. 1% -16.3% -8. 1% 13. 1% -27. 4%
Y D Online C orp. KRW A052770 K OS E 85.3 6590.00 7.2% 8. 0% 9.8% -24.8% -2.8% -46. 9%
Y nk K orea Inc. KRW A023770 K OS E 19.2 2795.00 -3.0% -8. 1% -24.3% -30.6% -18.5% -67. 9%
High 331.0% 2667.7% 2148.8% 3326. 7% 14292.0% 7.8%
Low -70.0% -84.2% -97.4% -98.1% -99.8% -99. 8%
Average 830.4 7.4% 37.2% 37.0% 49.5% 273.2% -40.2%
Median 0.1% 0. 8% 0.0% -0. 9% 50. 0% -34. 7%
Figure 19. Price Performance

Source. Capital IQ
Page 17

Valuation Multiples
P rimary US D Market TE V/L TM TE V/ NTM TE V/LTM TE V/NTM
C ompany Name S ec tor C ountry E xchange 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 Mark eting U nited S tates OT C B B AC L Z 15. 8 5. 0x - - - - - -
Actoz S oft C o., L td. G aming S outh K orea K OS E A052790 109. 4 0. 6x - 2.6x - 15. 1x - 1.6x
AQ Interactive, Inc. G aming J apan TS E 3838 83. 9 0. 9x - - - - - 1.5x
As k net AG G aming G ermany XT R A X T R A: A5A 24. 2 0. 2x - - - - - -
As s ociated Media H oldings Inc. G aming U nited S tates OT C P K AS MH 0. 9 19.4x - - - - - -
B etawave C orporation Media U nited S tates OT C B B B W AV 3. 8 0. 2x - - - - - 2.6x
B eyond C ommerce, Inc. S ocial Network ing U nited S tates OT C B B B Y OC 1. 4 1. 0x - - - - - -
B igs tring C orp. Ins tant Mes s aging U nited S tates OT C B B BS GC 1. 4 38.4x - - - - - -
B right T hings plc S ocial Network ing U nited K ingdom AIM AIM: B G T 8. 2 40.5x - - - - - 10. 4x
B roadW ebAs ia Inc. S ocial Network ing U nited S tates OT C P K BWBA 3. 4 - - - - - - -
C DC C orp. G aming H ong K ong Nas daqG S C H IN.A 264. 0 0. 7x - 11. 7x - - - 11. 2x
C hangyou. com L imited G aming C hina Nas daqG S C Y OU 1, 812. 8 5. 9x - 9.5x - 11. 7x - 7.8x
C hines e G amer International G aming T aiwan GTS M G T S M: 3083 804. 9 10.5x - 18. 1x - 24. 4x - 11. 7x
C ody V entures C orporation G aming U nited S tates OT C P K CVCP 0. 1 1. 6x - - - - - -
C ornerW orld C orporation C ontent U nited S tates OT C B B CWRL 3. 8 1. 4x - - - - - -
C yberplex Inc. Advertis ing C anada TS X T S X: C X 60. 1 0. 4x - 3.2x - 5.2x - 2.1x
DADA S pA S ocial Network ing Italy CM C M:DA 106. 8 0. 7x - 6.1x - - - -
DigitalP os t Interactive, Inc. C ontent U nited S tates OT C B B DG L P 5. 2 6. 2x - - - - - -
DigitalT own, Inc. S ocial Network ing U nited S tates OT C B B DG T W 34. 3 - - - - - - -
Dolphin Digital Media, Inc. S ocial Network ing U nited S tates OT C B B DP DM 19. 9 - - - - - - -
DXN Holdings B hd S ocial Network ing Malays ia K LS E DXN 45. 0 0. 7x - 4.0x - 5.4x - 0.8x
E n2G o International, Inc. S ocial Network ing U nited S tates OT C B B E TGI 14. 4 - - - - - - -
Neurotech P harmaceuticals C o. , L td. G aming S outh K orea K OS E A041060 30. 3 5. 1x - 10. 7x - - - 0.7x
eW orldC ompanies , Inc. G aming U nited S tates OT C P K EWR C 0. 9 30.3x - - - - - -
F luid Mus ic C anada, Inc. Media U nited S tates TS X T S X: F MN 104. 6 17.4x - - - - - 7.5x
F rogs ter Interactive P ictures AG G aming G ermany XT R A FR G 69. 2 7. 6x - - - - - 9.2x
G amania Digital E ntertainment C o., L td. G aming T aiwan GTS M 6180 229. 1 1. 3x - 8.2x - 23. 9x - 2.9x
G ameO n C o L td. G aming J apan TS E 3812 74. 1 0. 0x - 0.1x - 8.0x - 0.9x
G eoS entric O yj Mobile F inland HL S E G E O1V 48. 5 12.0x - - - - - -
G iant Interactive G roup, Inc. G aming C hina NY S E GA 1, 717. 0 - - - - 1.9x - 0.3x
G igaMedia L td. G aming T aiwan Nas daqG S G IG M 158. 1 0. 5x - - - 6.2x - 1.4x
G ravity C o., L td G aming S outh K orea Nas daqG M GR VY 56. 8 - - - - 0.0x - 0.0x
G ree, Inc. S ocial Network ing J apan TS E T S E : 3632 2, 878. 4 10.1x - 17. 2x - 34. 1x - 17. 8x
G ungH o O nline E ntertainment, Inc. Media J apan OS E 3765 268. 1 1. 9x - 8.5x - 50. 3x - 8.2x
HanbitS oft, Inc. G aming S outh K orea K OS E A047080 71. 0 1. 0x - - - 68. 7x - 1.9x
IAC /InterActiveC orp. Media U nited S tates Nas daqG S IAC I 2, 689. 0 0. 8x - 13. 2x - - - 1.4x
InternetArray, Inc. Media U nited S tates OT C P K INAR 0. 0 1. 1x - - - - - -
Is e B lu E quity C orp. Media U nited S tates OT C P K IS B L 0. 0 0. 5x - - - - - -
is eemedia Inc. C ontent C anada T S XV IE E 9. 6 5. 3x - - - - - -
J umbuck E ntertainment L imited S ocial Network ing Aus tralia AS X AS X:J MB 13. 2 0. 4x - 0.9x - 3.6x - 1.6x
K ent International H oldings Inc. S ocial Network ing U nited S tates OT C P K K NT H 5. 9 - - - - - - 0.6x
K ings oft C orporation L imited G aming C hina S E HK 3888 932. 7 6. 2x - 15. 5x - 20. 4x - 4.9x
L ingo Media C orporation L earning C anada T S XV T S XV :L M 11. 2 8. 0x - - - - - -
L ookS mart, L td. Direct Mark eting U nited S tates Nas daqG M L O OK 16. 3 - - - - - - 0.7x
Magnitude Information S ys tems Inc. S ocial Network ing U nited S tates OT C B B MAG Y 5. 5 - - - - - - -
Mixi, Inc. S ocial Network ing J apan TS E 2121 1, 009. 9 6. 1x - 20. 3x - 54. 3x - 6.3x
Mobile Data C orp. S ocial Network ing U nited S tates OT C B B MB Y L 3. 3 - - - - - - -
Modern T imes G roup Mtg AB Media S weden OM MT G B 3, 715. 5 2. 1x - 15. 8x - - - -
MO K O. mobi L imited S ocial Network ing Aus tralia AS X MK B 10. 1 12.8x - - - - - 9.0x
Multiplied Media C orporation, P rior to R evers e

Merger with R eward P hone International Inc. Mobile C anada T S XV T S XV :MMC 36. 1 - - - - - - 25. 7x
Myriad G roup AG Mobile S witzerland SWX MY R N 191. 7 3. 1x - - - - - -
NE OW IZ G ames C orporation G aming S outh K orea K OS E A095660 620. 3 2. 9x - 10. 6x - 31. 3x - 15. 9x
NetDragon W ebS oft, Inc. G aming C hina S E HK 777 313. 2 1. 8x - 5.9x - 15. 2x - 1.7x
Neteas e.com Inc. G aming C hina Nas daqG S NT E S 4, 961. 9 - - - - 2.7x - 0.7x
NeuL ion Incorporated V ideo C anada TS X T S X :NL N 55. 9 1. 6x - - - - - 7.5x
NeXplore C orporation C ontent U nited S tates OT C P K NX P C 33. 5 - - - - - - -
Ngi G roup Inc. Media J apan TS E 2497 60. 0 - - - - - - 1.1x
Northgate T echnologies L imited Direct Mark eting India BS E 590057 14. 8 0. 3x - - - - - -
OAO R B C Information S ys tems Media R us s ia MIC E X RBCI 166. 4 1. 1x - 8.1x - - - -
Oriented Media G roup B erhad Media Malays ia K LS E O ME DIA 8. 5 3. 1x - - - - - 3.7x
Open T ext C orp. C ollaboration C anada Nas daqG S OT E X 2, 727. 2 3. 2x - 12. 0x - 41. 4x - -
Openwave S ys tems Inc. Mobile U nited S tates Nas daqG S OP W V 224. 5 0. 6x - 13. 9x - - - 3.0x
T he P arent C ompany Mobile U nited S tates OT C P K K IDS .Q 0. 1 0. 2x - - - - - -
P erfect W orld C o., L td. G aming C hina Nas daqG S PWR D 1, 785. 8 0. 3x - 0.5x - 2.2x - 1.0x
P NI Digital Media Inc. Digital Ima ging C anada T S XV T S XV :P N 56. 5 2. 1x - 8.6x - - - 8.7x
Quepas a C orp. S ocial Network ing U nited S tates OT C B B QP S A 50. 8 - - - - - - -
R eal V alue E s tates , Inc. Media Is rael OT C B B R V LU 7. 7 - - - - - - -
S ahara Media H oldings , Inc. Media U nited S tates OT C B B S H HD 9. 3 - - - - - - 11. 4x
S handa Interactive E ntertainment L td. G aming C hina Nas daqG S S NDA 2, 724. 5 - - - - 1.8x - 0.3x
S hutterfly, Inc. Digital Ima ging U nited S tates Nas daqG S S F LY 524. 2 1. 4x - 10. 5x - 92. 7x - 2.6x
S K C ommunications C o. , L td. S earch S outh K orea K OS E A066270 536. 6 2. 7x - 41. 6x - - - -
S NAP Interactive, Inc. Dating U nited S tates OT C B B S TVI 5. 5 1. 2x - 7.5x - 30. 6x - 3.0x
S ocial Media V entures Inc. Dating U nited S tates OT C P K S MV I 0. 0 4. 6x - - - - - -
S ocialwis e, Inc. S ocial Network ing U nited S tates OT C B B S C LW 24. 2 - - - - - - -
S ohu. com Inc. G aming C hina Nas daqG S S OH U 1, 933. 7 2. 8x - 6.5x - 13. 5x - 3.6x
S park Networks , Inc. S ocial Network ing U nited S tates AME X LOV 60. 7 1. 2x - 5.7x - 20. 1x - 27. 4x
S pectrumDNA, Inc. Media U nited S tates OT C B B S P XA 4. 6 33.0x - - - - - -
S prylogics International C orp Media C anada T S XV T S XV :S P Y 0. 7 1. 7x - - - - - -
T encent H oldings L td. P ortal C hina S E HK 700 36, 425. 1 25.2x - 49. 4x - 63. 1x - 28. 0x
T he9 L imited G aming C hina Nas daqG S NC T Y 176. 0 - - - - - - 0.1x
T heS treet. com, Inc. Media U nited S tates Nas daqG M TS CM 109. 4 0. 8x - 26. 9x - - - 1.4x
T ree.C om, Inc. P ortal U nited S tates Nas daqG M TRE E 93. 6 0. 4x - 9.3x - - - 1.8x
Unilava C orporation Media U nited S tates OT C B B U NL A 33. 5 6. 4x - - - - - 1.4x
Unis erve C ommunications C orp. S ocial Network ing C anada T S XV T S XV :U S S 2. 8 0. 5x - 9.4x - - - -
United Online, Inc. Media U nited S tates Nas daqG S U NT D 542. 9 0. 8x - 3.7x - 8.2x - -
UO MO Media, Inc Media C anada OT C B B U OMO 2. 8 3. 4x - - - - - -
V alueC lick, Inc. Media U nited S tates Nas daqG S V C LK 813. 6 1. 5x - 5.6x - 13. 8x - 4.0x
V elti P lc Media U nited K ingdom AIM VEL 185. 0 2. 2x - 10. 9x - 22. 1x - 6.3x
V O IS , Inc. S ocial Network ing U nited S tates OT C B B V O IS 9. 0 - - - - - - -
W ebzen Inc. G aming S outh K orea K OS E K O S E :A069080 130. 8 2. 9x - - - - - 1.3x
W e-R -Y ou C orp. G aming U nited S tates OT C P K WERU 0. 3 0. 6x - - - - - -
W izzard S oftware C orporation P odcas ting U nited S tates AME X W ZE 17. 6 3. 7x - - - - - -
W orlds .com Inc. C ontent U nited S tates OT C B B W DDD 5. 4 - - - - - - -
W ynds torm C orporation C ontent U nited S tates OT C P K W Y ND 0. 9 - - - - - - -
XING AG S ocial Network ing G ermany XT R A O 1B C 193. 4 2. 5x - 9.1x - 28. 1x - 6.0x
Y D Online C orp. G aming S outh K orea K OS E A052770 85. 3 1. 6x - 7.2x - 8.8x - 2.6x
Y nk K orea Inc. G aming S outh K orea K OS E A023770 19. 2 1. 5x - 14. 2x - - - 0.6x
High 36, 425. 1 40.5x - 49. 4x - 92. 7x - 28. 0x
L ow 0. 0 0. 0x - 0.1x - 0.0x - 0.0x
Average 830.4 5.5x - 11.4x - 23.1x - 5.7x
Median 53. 4 1. 7x - 9.3x - 15. 2x - 2.8x
Figure 20. Valuation Comparison

Source. Capital IQ
Page 18

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 U nited S ta tes 5, 465. 2 S weden 3,266. 2 United S tates 3,752. 1 United S tates 393. 7 A us tralia 42. 8%
C a na da 9 J a pan 4, 440. 9 J apan 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 a na da 992. 4 J a pa n 213. 0 J apan 24. 3%
J a pa n 6 C anada 2, 538. 6 C anada 282. 1 S outh K orea 740. 1 C a na da 199. 5 S outh K orea 20. 1%
T a iwa n 3 S outh K orea 1, 845. 8 Hong K ong 237. 5 J a pa n 680. 8 S outh K orea 133. 5 S weden 14. 1%
G erma ny 3 T a iwa n 1, 546. 9 S witzerla nd 205. 8 T a iwa n 404. 6 T a iwa n 65. 0 Italy 13. 1%
Aus tralia 2 G ermany 318. 0 S outh K orea 205. 1 Hong K ong 334. 2 Ita ly 31. 0 R us s ia 13. 1%
S witzerla nd 1 Hong K ong 237. 5 R us s ia 193. 9 Ita ly 236. 1 R us s ia 20. 4 Hong K ong 6. 0%
India 1 S witzerla nd 205. 8 U nited S ta tes 188. 5 G erma ny 171. 4 Hong K ong 20. 0 S witzerla nd 5. 4%
F inla nd 1 R us s ia 193. 9 Ita ly 136. 8 R us s ia 156. 3 G erma ny 9. 7 G ermany -7. 4%
United K ingdom 1 Ita ly 136. 8 G ermany 106. 0 Ma lays ia 78. 5 Aus tralia 4. 9 C anada -10. 6%
Ita ly 1 F inland 51. 3 F inland 51. 3 S witzerla nd 63. 0 S witzerla nd 3. 4 U nited S ta tes -15. 4%
Hong K ong 1 Malays ia 36. 4 Malays ia 36. 4 India 47. 7 United K ingdom -2. 7 F inland NA
S weden 1 Aus tralia 29. 4 India 20. 2 Aus tralia 17. 8 F inla nd -18. 5 India NA
R us s ia 1 India 20. 2 Aus tralia 14. 7 F inla nd 4. 5 India -51. 2 U nited K ingdom NA
Ma lays ia 1 U nited K ingdom 5. 6 U nited K ingdom 5. 6 United K ingdom 0. 0 Ma lays ia -85. 2 Mala ys 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 Na s daqG S 1, 918. 2 NY S E 68. 2%

Na s daqG S 14 Nas da qG 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 Na s daqG S 508. 5 OM 274. 4 S E HK 40. 6%
T S XV 5 OM 3, 266. 2 Nas da qG S 1,587. 9 CM 236. 1 TS E 187. 1 GTS M 37. 3%
TS E 5 K OS E 1, 799. 1 TSE 825. 9 NY S E 202. 3 NY S E 137. 9 Nas da qG S 30. 7%
Na s daqG M 4 NY S E 1, 594. 3 GTS M 684. 0 RTS 156. 3 K OS E 115. 4 TSE 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 Na s daqG M 97. 3 Na s daqG M 25. 2 CM 13. 1%
AME X 2 Nas da qG M 237. 6 CM 136. 8 K OS E 86. 1 RTS 20. 4 R TS 13. 1%
AS X 2 SWX 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 TSX 84. 4 SWX 63. 0 AME X 6. 0 Nas da qG M 8. 6%
SWX 1 OT C B B 166. 1 Nas da qG M 59. 4 XT R A 57. 1 AS X 4. 9 S WX 5. 4%
HL S E 1 CM 136. 8 HLS 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 A ME X -27. 7%
BS E 1 AME X 79. 9 K LS E 36. 4 AME X 26. 4 TS X -7. 0 TSX -35. 8%
OS E 1 HLS E 51. 3 BS E 20. 2 AS X 8. 9 T S XV -7. 2 OTCB B -48. 2%
NY S E 1 OT C P K 48. 8 T S XV 19. 5 T S XV 8. 6 OT C P K -17. 9 OTCP 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 A IM NA
OM 1 AS X 29. 4 AS X 14. 7 OT C B B 2. 4 BSE -51. 2 BSE NA
RTS 1 BS E 20. 2 OT C B B 10. 4 OT C P K 0. 6 OT C B B -58. 3 HLS 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 19
Financing - L as t Three Months (US $ m)

F in. Amount (Million) Type of financing
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
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
gWallet 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 apan 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 Partners US A 3. 0 3. 0
W his 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
W eP ay US A 1. 7 1. 7
J inni Is ra el 1. 6 1. 6
Vis ible Technologies 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 Quantcas t US A 27. 5 27.5

P aymo US A 25. 0 25.0
Yelp US A 25. 0 25.0
Vis ible Technologies US A 22. 0 22.0
G uvera A us tralia 20. 0 20.0
6 W aves C hina 17. 5 17.5
S piceworks 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
F lurry US A 7. 0 7. 0
B uyWithMe US A 5. 5 5. 5
G aikai Netherla nds 5. 0 5. 0
Apis phere US A 4. 6 4. 6
E yeka F ra nce 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
F eb-10 Ngmoc o US A 25. 0 25.0

B lue K ai US A 21. 0 21.0
W ebVis ible US A 20. 0 20.0
TidalTV US A 16. 0 16.0
Avvas i C a na da 14. 1 14.1
F lixs ter US A 12. 5 12.5
Yodle US A 10. 0 10.0
B rightR oll US A 10. 0 10.0
Yammer US A 10. 0 10.0
C urrens ee US A 8. 0 8. 0
TuneWiki US A 7. 0 7. 0
Vivox US A 6. 8 6. 8
Moons hoot US A 6. 6 6. 6
F ynanaz US A 6. 5 6. 5
E verys c ape US A 6. 0 6. 0
P urs way Is ra el 6. 0 6. 0
E ffec tive Meas ure A us tralia 4. 0 4. 0
C ognitive Match UK 2. 5 2. 5
Vook US A 2.5 2. 5
S crapblog US A 2. 5 2. 5
S milebox US A 2. 0 2. 0
P ros per.c om US A 2.0 2. 0
K ODA US A 1.5 1. 5
B ackupify US A 0.9 0. 9
R anker US A 0.8 0. 8
Apps F ire F ra nce
F eb-10 Total 5.7 2.0 23.1 59.6 103.8 10.0 204.1
G rand Total 13.6 3.0 122.0 184.4 412.2 108.5 25.0 868.7
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
Aardvark US A www. vark. com Aardvark (formerly Mechanical Zoo) is a s ocial s earch engine, founded by a group of former G oogle employees . Aardvark lets us ers as k
ques tions that are dis tributed to the s ocial graph for quick, high quality ans wers . It la unched into private beta in 2008.
Apps F ire F rance www. apps fire. com Apps F ire is a dis covery platform for mobile a pplica tions .
AppVee US A www. appvee. com As of F ebrua ry 2, 2010, AppV ee, LL C was acquired by Appolicious Inc. AppV ee, LLC operates review W ebs ites for mobile a pplica tions . T he
company was incorpora ted in 2008 and is ba s ed in O rlando, F lorida.
Avvas i C a nada www. avvas i. com Avvas i Inc. provides s ys tems play in video proces s ing s olutions for cable, 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 ackupify US A www. backupify. com B ackupify, Inc. provides online data backup s ervices . Its s ervices enable us ers to protect their pictures , videos , documents , a nd blog pos ts .
T he company wa s founded in 2008 and is bas ed in Louis ville, K entucky.
B lue K ai US A www. blueka i. com B lue K ai, Inc. operates an online platform for intent-focus ed data exchange. Its platform enables marketers to cus tomize and own data to
boos t advertis ement targeting and dis cover new pros pects ; publis hers to provide intent data and ea rn revenue; and cons umers to manage
what mark eters know about them. T he company was incorporated in 2007 and is bas ed in B ellevue, W a s hington.
B rightR oll US A www. brightroll. com B rightR oll, Inc. operates a video a dvertis ing network in the United S tates . It executes video ad campaigns on online media properties for
brand advertis ers and agencies . T he company offers pre-roll or mid-roll video a dvertis ements , click-to-play video a dvertis ements , video
tickers , video overlays , a nd in game video a dvertis ements . It a ls o provides optimization and targeting s olutions , proprietary ad units ,
cons olidated reporting s olutions , and integration s olutions with third party ad s ervers . T he company, formerly known as P os tR oller, was
founded in 2006 and is headquartered in S an F rancis co, C alifornia with an additiona l office in the United K ingdom. It has opera tions in
Aus tralia, C a nada, Mexico, and the United K ingdom.
C ognitive Match UK www. cognitivematch. com C ognitive Match Limited develops s oftware s olutions that ma tch individua ls with content online and pers onaliz e their experience. C ognitive
Match Limited was formerly known as F avy Limited a nd changed its name to C ognitive Match Limited in March 2009. T he company was
incorporated in 2008 and is ba s ed in London, United K ingdom.
C ozi US A www. cozi.com C oz i G roup, Inc. provides W eb s ervices . Its W eb s ervices help families to ma nage s chedules , track s hopping and to do lis ts , organize
hous ehold chores , s ta y in communication, and s hare memories . C ozi G roup, Inc. was founded in 2005 and is bas ed in S eattle, W as hington.
C urrens ee US A www. currens ee. com C urrens ee, Inc. operates a forex tra ding s ocial network for tra ders in the United S tates a nd interna tionally. It enables like-minded traders to
connect and collaborate with each other, and s hare ins ights bas ed on the actual tra ding activity of the community, as well as offers decis ion
making tools to traders on s ubs cription. T he company a llows members to execute trades in forex markets through NinjaT rader, a trading
platform; acces s rea l-time trade and pos ition information; and levera ge a s et of s ocial analytics . It s upports forex brokers , and educational
a nd portal pa rtners . C urrens ee, Inc. was formerly known a s T ra dual Inc. and changed its name to C urrens ee, Inc. in J uly 2008. T he
company was incorpora ted in 2008 and is ba s ed in B os ton, Mas s achus etts .
DubMeNow US A www. dubmenow. com DubMeNow, Inc. develops a platform for exchanging and upda ting conta ct information through mobile phones . T he company was founded in
2008 and is bas ed in V ienna, V irginia .
E ffective Meas ure Aus tralia www. effectivemeas ure. com E ffective Mea s ure P ty Ltd. provides online audience meas urement tools for advertis ers , publis hers , and government bodies . It offers digital
a udience meas urement, W ebs ite rankings , Internet demographics , and media planning tools for publis hers , agencies and digital marketers .
T he company wa s founded in 2008 and is bas ed in Melbourne, Aus tralia with additional offices in Dubai, L ondon, New Y ork, Melbourne,
S ydney, and S ingapore. It has locations in Melbourne and S ydney, Aus tra lia; P alo Alto, C a lifornia ; Dubai, the United Ara b E mirates ; L ondon,
the United K ingdom; and New Y ork, New Y ork, as well as opera tions in Algeria, India, Oman, the P hilippines , V ietnam, Aus tra lia, Indones ia,
P akis tan, T haila nd, B ahrain, Ma lays ia, S audi Ara bia, the United Arab E mirates , E gypt, Morocco, S ingapore, and T urkey.
E verys cape US A www. everys cape.com E veryS cape, Inc. provides a vis ua l and interactive platform for local s earch that provides a virtual experience of metropolitan, s uburban, and
rura l areas . It allows us ers to s ha re s tories and opinions of daily experiences aga ins t a backdrop ranging from s treets and cities ,
communities , res taura nts , s chools , and real es tate. T he company provides eye-level photographic content of va rious cities and towns . It lets
bus ines s es and organiz ations to build engaging relations hips with cons umers through three-dimens ional photo-realis tic experiences of cities
a nd towns , s treets , s idewalks , and building exteriors a nd interiors . T he company’s technology allows to experience an eye-level walk down a
s caped s treet, gathering a nd s haring information on bus ines s es and a ttra ctions , entering a s tore and s hopping, check ing the menu a nd
reviews of a res taurant, or the upcoming performances of a theater. E veryS cape, Inc. was formerly known as Mok3, Inc. and changed its
name in May 2007. T he company was founded in 2002 and is bas ed in W altham, Ma s s achus etts .
F lixs ter US A www. flixs ter. com F lixs ter, Inc. operates as a n online community for movie fans . It offers movies in theaters , actor profiles and fan clubs , celebrity gos s ip and
movie news , video clips , movie and actor photos , and us er quiz zes . T he company was incorpora ted in 2005 and is ba s ed in S an F rancis co,
C alifornia.
F ynanaz US A www. fynanz . com F ynanz , Inc. offers online lending marketpla ce. T he company was founded in 2007 and is ba s ed in New Y ork, New Y ork.
Figure 24a. Company Descriptions
Source. Company reports, Capital IQ, Crunchbase
Page 21
C ompany Des c riptions - C urrent Month C apital Market Ac tivity

C ompany HQ Webs ite Des cription
G lam Media US A www. glammedia. com G lam Media, Inc. , an online media company, owns and opera tes lifes tyle W ebs ites and blogs for women. Its W ebs ites enable the us ers to
expres s opinions on a ra nge of lifes tyle topics , including s tyle, fas hion, s hopping, wellnes s , and food. G lam Media, Inc. was founded in 2003
a nd is bas ed in B ris bane, C alifornia with a n additional office in New Y ork, New Y ork. T he company has opera tions in the United S tates , the
United K ingdom, C anada, and Aus tralia.
K ODA US A www. koda. us K ODA’s mis s ion is to introduce today’s young profes s ionals to the world’s employers . S ince launching its beta s ite in May 2009, more than
400 employers including F ortune 500 market leaders us e the s ite. K O DA is changing the lands cape of s ocial recruiting through technology
innovation that encourages s elf-expres s ion.
Moblyng US A www. moblyng. com F liptrack, Inc. , doing bus ines s as Moblyng, operates a s ocial networking W ebs ite which offers s haring of media with friends on the W eb and
to mobile phones . It enables to detect and mobiliz e W eb-bas ed photo and s lide s how widgets and online videos from s ocial media pages or
UR Ls for dis tribution to mobile phones . T he company allows s haring of s lide s hows through emails , s ocial networking s ites , or mobile
phones . F liptrack, Inc. was founded in 2005 and is bas ed in R edwood C ity, C a lifornia .
MOG US A www. mog. com MOG is a place for people to publis h thoughts about mus ic, as well as a pla ce to s hare the names of the s ongs they play on their computers
(us ing a downloada ble progra m ca lled MOG -O -MAT IC that runs in the background and automatically detects s ongs no matter which mus ic
player is us ed). Additionally MOG has integrated R haps ody’s S treaming Mus ic C ollection, which bas ica lly makes MOG into a dis covery-
oriented interface for s treaming mus ic.
Moons hoot US A www. moons hoot. com Moons hoot, Inc. offers intera ctive learning s ervices for children. T he company us es online games to teach E nglis h language to s tudents in
J apan. Moons hoot, Inc. wa s founded in 2007 and is bas ed in P alo Alto, C a lifornia.
Ngmoco US A www. ngmoco. com ngmoco, Inc. develops games and enterta inment experiences for the iP hone. T he company wa s founded in 2008 and is bas ed in S an
F rancis co, C alifornia.
P eerP ong US A www. peerpong. com P eerP ong, Inc. offers s ocial networking webs ite. T he company was incorporated in 2006 and is bas ed in S a n F rancis co, C alifornia.
P ros per.com US A www. pros per. com P ros per is a people-to-people lending marketpla ce that attempts to make cons umer lending more financially and s ocially rewarding. At
P ros per, people lis t and bid on loans us ing P ros per’s online auction platform. P ros pective lenders s et their minimum interes t ra te and bid in
increments of $50 to $25, 000 on loan lis tings they s elect. P ros per generates revenue by collecting a one-time 1% or 2% fee on funded loans
from borrowers , and as s es s es a 0. 5% or 1. 0% annual loa n s ervicing fee to lenders .
P urs way Is rael www. purs way. com P urs way (previous ly known as Datanetis ) empowers cons umer-facing organiz ations to clos e the ga p between how they market and how
people buy. T he P urs way patent-pending technology enables companies to identify, meas ure, and impact how opinion lea ders s hape their
followers ’ purchas ing decis ions .
Qiyi C hina www. qiyi. com Q iyi is the new online video compa ny crea ted by C hines e s earch engine, B aidu. Q iyi. com is to be built into an ad-s upported bus ines s that
provides premium licens ed content.
R anker US A www. ranker. com R ank er, L LC provides W ebs ite des igning s ervices . T he company was incorporated in 2007 and is bas ed in Los Angeles , C alifornia.
R ent the R unway US A www. renttherunway. com R ent T he R unway, Inc. offers women to rent in ready-to-wear and contemporary des igner apparels . T he company was incorporated in 2009
a nd is bas ed in New Y ork , New Y ork.
S crapblog US A www. s crapblog. com S crapblog, Inc. opera tes a W ebs ite that allows us ers to s hare photos and videos online. Its online editor enables us ers to decorate their
s crapbook with text, images , themes , and other embellis hments . T he company offers QuickMix s cra pbook kits , including wedding, birthda y,
travel, s ea s onal, holiday, baby, a nd jus t-for-fun s tyles that help us ers to create pers onaliz ed s crapbooks . S crapblog, Inc. was incorporated in
2005 and is bas ed in C ora l G ables , F lorida.
S erious B us ines s US A www. s erious bus ines s . com S erious B us ines s , Inc. operates as a s ocial ga ming platform. It produces online games for the us ers . T he company wa s founded in 2008 a nd
is bas ed in S an F ra ncis co, C alifornia. As of F ebruary 11, 2010, S erious B us ines s , Inc. opera tes as a s ubs idiary of Zynga, Inc.
S milebox www. s milebox. com S milebox, Inc. provides an online s ervice that connects its us ers with family a nd friends us ing photos and videos . It allows its us ers to create,
a dd, s hare, print, a nd email animated s crapbooks , photo albums , s lides hows , pos tcards , and e-cards for va rious occas ions . T he company
wa s founded in 2005 and is bas ed in R edmond, W as hington.
S tylehive US A www. s tylehive. com S tylehive is a s ocial bookmark ing s ite tha t is focus ed on s hopping. S tylehive helps its us ers to follow and s hare s tyles they like by creating
tagged collections . S tylehive’s members can comment a nd s peak with other members and profes s ionals can promote thems elves and 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 and
parties .
TidalTV US A www. tidaltv. com T idalT V , Inc operates an online platform that offers acces s to video programming on the Internet. It offers branded broadcas t, cable, and
W eb programming. T he compa ny ena bles to acces s its s ervices through des k top, pers ona l home page, or s ocial network s ites . T idalT V was
incorporated in 2008 and is ba s ed in B altimore, Maryla nd with additional offices in New Y ork, Los Angeles , a nd Aus tin.
TuneW iki US A www. tunewiki.com T uneW iki, Inc. provides a n online s ervice cons is ting of a community-created lyrics s ynchroniza tion databa s e and an online/mobile
community. It allows its us ers to edit lyrics in the databas e, as well a s us e forums , import blogs , and pa rticipate in chat rooms . T he company
wa s founded in 2007 and is bas ed in Milpitas , C alifornia.
Us tream US A www. us tream. tv Us tream. tv, Inc. provides online video s ervices . T he company offers a platform to broadcas t live video on the Internet. It als o combines live
video broadcas ting via a W ebcam with live IR C cha t. Us tream. tv, Inc. was founded in 2006 and is bas ed in Mountain V iew, C alifornia.
Vivox US A www. vivox. com V ivox, Inc. provides voice chat, video, ins ta nt mes s aging, a nd pres ence for online games , virtual worlds , a nd other online communities . T he
company offers P recis ion S tudio S DK that ena bles to implement integrated s olutions ; Mana ged S ervice that delivers and s upports voice cha t
a nd communication tools to online ga mes and virtual worlds ; a nd s olutions for s ocial networking, cons umer communities , online games , and
virtual worlds . It s erves game and virtual world developers and publis hers . V ivox was formerly known as Libretel, Inc. and changed its name
to V ivox, Inc. in November 2005. T he company was founded in 2003 and is ba s ed in Natick, Mas s achus etts . V ivox, Inc. opera tes as a
s ubs idiary of P ulvermedia Inc.
Vook US A www. vook. com V ook is pioneering a new form of media and reinventing tra ditiona l book publis hing. A vook is a mixed-media form that blends video, text,
ima ges and s ocial s trea ms into a s ingle, integrated experience. S ince its formal launch in the fall of 2009, V ook ha s experienced impres s ive
momentum, forming s tra tegic publis hing relations hips with S imon & S chus ter, HarperS tudio and Hachette F ilipa cchi Media U. S . and
a nnouncing vook titles with bes ts elling writers , including S eth G odin and Anne R ice. T he company recently announced an exclus ive
partners hip with online video experts T urnHere while als o announcing its MotherV ook digital publis hing tool, which will ultimately allow V ook
to publis h hundreds of titles each week.
WebVis ible US A www. webvis ible. com W ebV is ible, Inc. , a s oftware as a s ervice company, provides online marketing products and s ervices for s mall and mid-s iz e bus ines s es . It
offers online advertis ing products through direct s ales and partners in the yellow pa ges , news pa per, and online marketing indus tries . T he
company s tocks its products in the form of online marketing s olutions , including managed s earch advertis ing, banner/dis pla y advertis ing, call
tracking, cus tomer a cquis ition s ites , online videos , proxy s ervers , promotional UR Ls , detailed ana lytics a nd R OI reporting, competitive
a nalys is intelligence, and bid management tools . It s erves profes s ional s ervice, medical s ervice, home s ervice, automotive s ervice,
beauty/healthcare, reta il, and franchis e bus ines s es ; advertis ing agencies ; and res eller partners . W ebV is ible, Inc. was formerly known as
S ME G lobal S olutions , Inc. and cha nged its name to W ebV is ible, Inc. in S eptember 2005. T he compa ny was founded in 2001 and is
headqua rtered in Irvine, C a lifornia .
Yammer US A www. yammer. com Y ammer, Inc. operates a company s ocial network. Its network allows employees to connect and s ha re by pos ting mes s ages . T he company’s
network als o s erves as a company directory in which every employee has a profile. In addition, it offers des k top, B la ckB erry, iP hone, IM,
ema il, and S MS clients . Y ammer, Inc. was formerly a s ubs idiary of G eni, Inc. Y ammer was founded in 2008 and is bas ed in W es t Hollywood,
Yodle US A www. yodle. com C odle,
Y alifornia.
Inc. provides online advertis ing s ervices for bus ines s es . It enables to promote bus ines s on s earch engines and W eb s ites . T he
company s erves various s ervice indus tries , s uch as beauty and pers ona l care, bus ines s and profes s ional s ervices , hea lth and medical,
home and garden, and travel and lifes tyle. Y odle, Inc. was formerly known as Natpal, Inc. T he company was founded in 2005 and is bas ed in
New Y ork, New Y ork.
Figure 24b. Company Descriptions
Source. Company reports, Capital IQ, Crunchbase
Page 22
RELEVANT DISCLOSURES APPLICABLE TO: NONE
1. None applicable.
ANALYST CERTIFICATION
Each analyst of Mackie 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.
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.
I n f o r ma t i o n a b o u t M a cki e 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 st 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 c h t o c l 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 mme n d a t i o n s wh i ch a r e i n
e a c h o f o u r r a t i n g ca t e g o r i e s i s a va i l a b l e o n o u r we b s i t e a t ww w. ma c k i e r e se a r ch . co 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 v e d t o b e r e l i a b l e b u t i t s a c c u r a c y o r c o mp l e t e n e s s 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
M a c k i e R e se a r c h C a 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 li t y. M a c ki e 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 c t 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 c u r i t i e s me n t i o n e d h e r e i n . C o 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 s se d p e r mi s si o n o f
M a c k i e R e se a r c h C a p i t a l Co r p o r a t i o n . ( U . S. I n st i t u t i o n a l Cl i e n t s — R e se 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 M a c ki e R e s e a r c h C a p i t a l C o r p o r a t i o n )
a c c 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 c e i vi n g t h i s r e p o r t s h o u l d e f f e c t t r a n s a ct i o n s
i n s e cu r i t i e s d i s cu s s e d i n t h e r e p o r t t h r o u g h R e se a r c h C a p i t a l U. S . A . I n c. , a Br o ke 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 c u r i t i e s a n d E xc h a n g e C o m mi s si o n ) .
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
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SOFTWARE & SERVICES 2 MARCH 2010

David Shore, CFA, MBA 416.860.6784

Modest Growth in VC Activity for February 2010

Financing Activity Last Twelve Months

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

Deal Focus – Video and Ad Sectors Attracting the Big Money

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 7a. Key Developments

Figure 7c. Key Developments

Market C ap ($US mm)

Figure 8. Market Cap Ranking

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

G ungHo O nline E ntertainment, Inc.

P NI Digita l Media Inc .

C hines e G amer International

O riented Media G roup B erhad

T ree.C om, Inc.

B ey ond C ommerc e, Inc.

S K C ommunications C o., L td.

Neurotech P ha rma ceuticals C o., L td.

Digita lP os t Interactiv e, Inc.

Modern T imes G roup Mtg AB

T heS treet.com, Inc .

S NAP Interac tiv e, Inc .

Unilav a C orpora tion

L ingo Media C orpora tion

IAC /InterAc tiv eC orp.

S park Network s , Inc.

V a lueC lick , Inc.

NetDragon W ebS oft, Inc.

F rogs ter Interac tive P ic tures AG

O penwav e S ys tems Inc.

HanbitS oft, Inc.

S oc ial Media V entures Inc.

Acc eleriz e New Media, Inc.

Wiz z ard S oftwa re C orpora tion

Figure 9. TEV/Revenue Ranking

Average TEV/LTM Revenue - By Country

15.0 12.0 15.0

9.6 10.0 7.0

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

NE O WIZ G ames C orporation

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

T ree. C om, Inc .