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SOFTWARE & SERVICES 3 NOVEMBER 2009
W E B 2 . O W E E K L Y
DAVID SHORE, CFA, MBA 416.860.6784
Damian Wojcichowsky, CFA (Associate), 416.860.7652
YOUR GPS SYSTEM IS OBSOLETE ALREADY…
GOOGLE PROVIDES FREE VOICE-BASED TURN-BY-TURN DRIVING DIRECTIONS Google Maps and Google Streetview are among the most popular applications in the Google stable. Layered on to these, Google has recently announced, will be free audio turn-by-turn navigation directions included with every Android mobile OS shipped. This free innovation is made possible courtesy of the army of automobiles prowling the world’s city streets building Google’s proprietary mapping database (at considerable cost to Google, no doubt).
DOOM FOR TOMTOM, GARMIN Not unexpectedly, the share prices of the proprietary (and non-free product vending) GPS device makers, TomTom and Garmin, plummeted on the news of Google’s latest application. Observe the latest 10-day stock charts for the two GPS device makers.
ANDROID A THREAT TO PROPRIETARY PLATFORMS, SUCH AS APPLE AND BLACKBERRY This Google development threatens the two leading smartphone players, Apple and BlackBerry. Since both of these companies must purchase their own mapping data to offer a similar service, they are faced with the choice of taking a hit to margins or shipping their smartphones without free navigation.
ANDROID STEADILY S INKING ITS HOOKS INTO THE MOBILE MARKET The possibil it ies for disruption in the mobile device space on the part of Google and its ad-based revenue model are beginning to come to light with every new, free application press release. Though Android-equipped phones have not made the same kind of splash as the iPhone nor have they the user-base loyalty of the BlackBerry, we expect that developments along the lines of Google’s latest wil l continue to bring the Android phone segment into the forefront.
CAPIT AL M ARKET S ACT IV I TY SLO WS DO WN AS OCTO BE R WI NDS UP
October finishes limping: Total transaction value in the Web 2.0 universe for October is $170.8 (vs. $151.2 mil lion at t ime of last publication). The month ended with 26 financings in the sector averaging $6.6 mill ion each (vs. an average of $7.6 mil lion last week). In comparison, total capital raised in September was $232.8 mill ion, averaging $9.0 mil lion (26 deals); August was $221.6 mill ion, averaging $7.6 mil lion (29 deals); and July (35 deals) $191.4 mil lion, averaging $5.5 mil lion.
This report has been created by Analysts that are employed by Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report.
www.researchcapi ta l .com
Toronto 416 .860 .7600 Montrea l 514.399 .1500 Vancouver 604 .662 .1800 Calgary 403 .265.7400 Regina 306 .566 .7550
Page 2
THE WE B 2 . 0 UNI VE RSE
Eighty-nine public Web 2.0 companies: Our Web 2.0 universe contains 89 companies, with a combined market cap of approximately $69 bil lion (Figure 1). The median market cap for the group is $41.8 mil lion, with average trail ing revenue of $162 mill ion (median $57 mill ion). The companies are also generally profitable with a median EBITDA margin of 12.6%. On a valuation basis, the overall average is 5.2x trai ling revenue (median 1.7x) and 10.2x trail ing EBITDA (median 7.6x). Twenty of the companies have more than 500 employees.
Comparable Company Analys is > Web 2.0
Company Name LTM as of Ticker E xchange
Trading
Currency HQ
Current
Price
USD Market
Cap ($m)
USD LTM Total
Rev ($m)
USD LTM Total
E B ITDA ($m)
EB ITDA
%
TEV/LTM
Revenue
TEV/LTM
E B ITDA EmployeesAccelerize New Media , Inc. 6/30/2009 AC LZ OTCB B US D United S ta tes 0.55 15.4 4.4 (3.7) -83.3% 4.6x - 11
Actoz S oft C o. , Ltd. 6/30/2009 A052790 K OS E KR W S outh K orea 14,500 105.2 108.7 25.9 23.8% 0.7x 2.8x NA
AQ Interactive, Inc. 6/30/2009 3838 T S E J P Y J apan 46,800 28.5 66.1 (2.0) -2.9% 0.1x - NA
Associated Media Holdings Inc. 6/30/2007 AS MH OTCP K US D United S ta tes 0.01 0.4 0.1 (2.3) NM 12.6x - 3
B igs tring C orp. 6/30/2009 B S GC OTCB B US D United S ta tes 0.03 2.0 0.1 (1.5) NM 49.2x - 4
B etawave C orporation 6/30/2009 BW AV OTCB B US D United S ta tes 0.03 0.9 9.4 (12.6) NM - - 51
B eyond C ommerce, Inc. 6/30/2009 B YOC OTCB B US D United S ta tes 0.08 4.2 11.7 (12.8) NM 0.9x - 101
B right Things plc 3/31/2009 AIM:B G T AIM GB P United K ingdom 0.01 5.9 0.0 (2.7) NM - - NA
B roadWebAs ia Inc. 9/30/2008 BW BA OTCP K US D United S ta tes 0.03 2.5 0.0 (4.6) NM - - 46
CDC C orp. 6/30/2009 CHIN.A NasdaqGS US D Hong K ong 2.35 249.1 361.6 25.1 6.9% 0.7x 9.7x 2,227
C hangyou.com L imited 9/30/2009 C YOU NasdaqGS US D China 30.35 1,669.3 255.3 157.4 61.7% 5.3x 8.6x 628
C hina Ga teway C orporation 9/30/2008 CGW Y OTCP K US D United S ta tes 0.00 0.0 6.7 (6.6) -98.9% 0.0x - 37
C hinese G amer Interna tiona l 6/30/2009 G T S M:3083 G T S M TWD T aiwan 426 1,104.8 61.6 34.7 56.3% 16.8x 29.8x NA
C LIC K E R Inc. 5/31/2009 C LK Z OTCB B US D United S ta tes 0.01 0.7 2.5 (1.2) -45.8% 0.3x - 22
C ornerWorld C orpora tion 7/31/2009 CW R L OTCB B US D United S ta tes 0.06 5.7 6.8 NM NM 2.4x - 16
C yberplex Inc. 6/30/2009 T S X:C X T S X CAD Canada 1 83.6 89.8 9.7 10.8% 0.7x 6.6x NA
DADA S pA 6/30/2009 CM:DA CM E UR Italy 7.07 167.7 241.9 31.8 13.1% 0.9x 6.8x NA
DXN Holdings B hd 5/31/2009 DXN K LS E MYR Ma lays ia 0.64 41.6 77.1 11.1 14.4% 0.7x 5.1x NA
Dibz International, Inc. NA DIB Z OTCP K US D United S ta tes 0.00 0.0 NA NM NM - - NA
Digita lP os t Interactive, Inc. 6/30/2009 DGLP OTCB B US D United S ta tes 0.05 3.9 1.0 (1.4) NM 5.9x - 7
Digita lT own, Inc. 8/31/2009 DGTW OTCB B US D United S ta tes 1.01 27.6 0.0 (1.8) NM - - 3
Dolphin Digita l Media , Inc. 6/30/2009 DPDM OTCB B US D United S ta tes 0.40 21.5 0.6 (3.4) NM 38.6x - NA
E olith Co. Ltd. 12/31/2008 A041060 K OS E KR W S outh K orea 530 32.2 15.4 (3.6) -23.6% 2.2x - NA
E xtens ions , Inc. 6/30/2009 E XT I OTC P K US D United S ta tes 0.40 17.8 NM NM NM - - 2
F luid Mus ic Canada , Inc. 6/30/2009 T S X:FMN T S X CAD United S ta tes 1.79 86.4 5.3 (5.1) -95.2% 15.3x - NA
F rogs ter Interactive P ictures AG 6/30/2009 F R G XT R A E UR Germany 19.05 71.5 9.6 (4.5) -47.0% 7.3x - NA
G amania Digita l E ntertainment C o. , Ltd. 6/30/2009 6180 G T S M TWD T aiwan 44.80 209.8 140.6 25.1 17.9% 1.3x 7.4x NA
G ameOn C o Ltd. 6/30/2009 3812 T S E J P Y J apan 85,200 92.1 81.9 20.1 24.5% 0.2x 0.9x NA
G eoS entric Oyj 6/30/2009 G E O1V HLS E E UR F inland 0.05 65.8 5.4 (17.4) NM 12.1x - 115
G iant Interactive G roup, Inc. 6/30/2009 GA NY S E US D China 7 1,644.0 198.5 124.1 62.5% - - 1,570
G igaMedia Ltd. 3/31/2009 G IGM NasdaqGS US D T aiwan 3.98 217.0 183.6 NM NM 0.8x - 751
G ravity Co. , Ltd 6/30/2009 GR V Y NasdaqGM US D S outh K orea 1.57 43.6 49.1 16.6 33.9% - - 469
G ree, Inc. 6/30/2009 T S E :3632 T S E J P Y J apan 5 ,090 2,548.3 156.0 93.7 60.1% 15.6x 25.9x NA
GungHo Online E ntertainment, Inc. 6/30/2009 3765 OS E J P Y J apan 211,500 271.0 119.5 26.6 22.2% 2.0x 8.9x NA
HanbitS oft, Inc. 6/30/2009 A047080 K OS E KR W S outh K orea 3 ,420 62.8 60.7 1.4 2.3% 0.8x 34.8x NA
IAC /InterActiveC orp. 9/30/2009 IAC I NasdaqGS US D United S ta tes 19.02 2,510.1 1,359.6 82.4 6.1% 0.6x 10.5x 3,200
IAS E nergy, Inc. 4/30/2009 IAS A.E OTCB B US D C anada 0.12 8.5 0.0 (0.6) NM - - NA
is eemedia Inc. 3/31/2009 IE E T S XV CAD Canada 0.15 6.8 1.6 (5.0) NM 3.7x - NA
J umbuck E nterta inment L imited 6/30/2009 AS X:J MB AS X AUD Aus tralia 0.34 14.5 16.7 7.2 42.8% 0.5x 1.1x 79
K AB Dis tribution Inc. 6/30/2009 T S X:K AB T S X CAD Canada 0 0.6 67.9 4.0 5.8% - - NA
K ingsoft C o. Ltd. 6/30/2009 3888 S E HK HKD China 8 1,058.1 139.1 61.4 44.2% 7.6x 17.2x 2,463
L ingo Media C orporation 6/30/2009 T S XV :LM T S XV CAD Canada 0.95 10.9 1.2 (1.9) NM 8.3x - NA
L iveW orld Inc. 6/30/2009 LVWD OTCP K US D United S ta tes 0.04 1.2 10.6 (0.1) -1.2% 0.0x - NA
LookS mart, Ltd. 6/30/2009 LOOK NasdaqGM US D United S ta tes 1.29 22.1 56.8 (4.4) -7.8% - - 90
Magnitude Information S ys tems Inc. 6/30/2009 MAGY OTCB B US D United S ta tes 0.01 5.4 0.1 (2.5) NM - - 14
Mixi, Inc. 6/30/2009 2121 T S E J P Y J apan 781000.00 1,345.8 136.8 46.2 33.8% 9.0x 26.5x NA
Modern T imes G roup Mtg AB 9/30/2009 MTG B OM S E K S weden 307.10 2,906.3 2,002.6 282.9 14.1% 1.7x 12.2x 2,969
MOKO.mobi L imited 6/30/2009 MK B AS X AUD Aus tralia 0.09 8.3 0.7 (2.4) NM 10.6x - NA
Myriad G roup AG 6/30/2009 MY R N S W X CHF S witzerland 4.89 209.7 63.0 3.4 5.4% 3.3x - 405
NE OW IZ G ames Corpora tion 12/31/2008 A095660 K OS E KR W S outh K orea 38600.00 681.9 207.3 55.7 26.8% 3.2x 12.1x NA
NetDragon W ebS oft, Inc. 6/30/2009 777 S E HK HKD China 5 326.7 89.3 25.7 28.7% 2.0x 7.0x 3,109
Netease.com Inc. 6/30/2009 NT E S NasdaqGS US D China 37.69 4,878.1 472.4 297.4 63.0% - - 3,109
NeuLion Incorporated 6/30/2009 T S X:NLN T S X CAD Canada 0.70 71.1 21.5 (13.0) -60.3% 2.8x - 237
NeXplore C orporation 6/30/2009 NXP C OTCP K US D United S ta tes 1 41.8 1.7 (13.3) NM 27.0x - NA
Ngi G roup Inc. 6/30/2009 2497 T S E J P Y J apan 27550.00 38.2 93.0 6.9 7.4% - - NA
Northgate T echnologies L imited 6/30/2009 590057 B S E INR India 29.30 21.3 82.9 (41.5) -50.0% 0.3x - NA
Open T ext C orp. 9/30/2009 OT E X NasdaqGS US D C anada 36.93 2,082.2 814.5 211.1 25.9% 2.6x 10.2x 3,411
Openwave S ys tems Inc. 9/30/2009 OPW V NasdaqGS US D United S ta tes 2.06 172.0 190.5 5.6 3.0% 0.4x 11.9x 590
P erfect W orld C o. , Ltd. 6/30/2009 PW R D NasdaqGS US D China 43.24 2,178.9 255.6 142.2 55.6% 0.7x 1.2x 2,096
P NI Digita l Media Inc. 6/30/2009 T S XV :P N T S XV CAD Canada 1.80 56.6 21.0 2.3 11.0% 2.6x 23.6x NA
Quepasa C orp. 6/30/2009 QP S A OTCB B US D United S ta tes 1 15.3 0.2 (10.6) NM - - 74
OAO R B C Information S ys tems 12/31/2007 R B C I R T S US D R us s ia 1.60 222.0 157.4 20.6 13.1% 0.0x 0.4x NA
S handa Interactive E nterta inment Ltd. 6/30/2009 S NDA NasdaqGS US D China 45.20 3,039.9 629.0 296.7 47.2% - - 3,124
S hutterfly, Inc. 9/30/2009 S FLY NasdaqGS US D United S ta tes 14.24 365.3 223.1 28.2 12.6% 1.1x 9.0x 514
S K C ommunications C o. , Ltd. 12/31/2008 A066270 K OS E KR W S outh K orea 7050.00 247.4 192.7 12.5 6.5% 1.3x 19.7x NA
S NAP Interactive, Inc. 6/30/2009 S T V I OTC B B US D United S ta tes 0 2.3 3.5 0 .9 27.0% 0.2x 0.7x 11
S NM G loba l Holdings 9/30/2008 S NMN OTCP K US D United S ta tes 0.00 0.0 2.0 (0.7) -34.8% 1.1x - 33
S ocial Media V entures Inc. 12/31/2008 S MV I OTC P K US D United S ta tes 0 0.0 0.1 (0.1) -60.6% 4.5x - NA
S ocialwis e, Inc. 6/30/2009 S C LW OTCB B US D United S ta tes 0.50 22.1 0.0 (5.6) NM - - NA
S ohu.com Inc. 9/30/2009 S OHU NasdaqGS US D China 54.07 2,072.7 501.0 218.5 43.6% 3.1x 7.0x 3,197
S park Networks , Inc. 6/30/2009 LOV AME X US D United S ta tes 3 59.3 50.5 10.8 21.3% 1.1x 5.3x 183
S pectrumDNA, Inc. 6/30/2009 S P XA OTCB B US D United S ta tes 0 7.3 0.1 (2.5) NM - - 7
T encent Holdings Ltd. 6/30/2009 700 S E HK HKD China 143 33,542.7 1,391.6 680.3 48.9% 26.6x - 6,421
T he P arent C ompany 8/2/2008 K IDS .Q OTCP K US D United S ta tes 0.01 0.2 112.0 (13.5) -12.0% 0.2x - 347
T he9 L imited 12/31/2008 NC T Y NasdaqGS US D China 7.82 196.2 250.6 85.5 34.1% - - 1,626
T heS treet. com, Inc. 3/31/2009 T S CM NasdaqGM US D United S ta tes 2.41 73.8 67.0 1.9 2.9% 0.1x 4.7x 310
T ree.C om, Inc. 6/30/2009 T R E E NasdaqGM US D United S ta tes 8.05 87.7 216.6 (0.7) -0.3% 0.4x - 700
Unis erve C ommunica tions C orp. 5/31/2009 T S XV :US S T S XV CAD Canada 0.05 1.1 17.1 (0.2) -1.0% 0.2x - NA
United Online Inc. 6/30/2009 UNTD NasdaqGS US D United S ta tes 7.86 659.0 949.8 203.2 21.4% 1.0x 4.5x 1,469
UOMO Media , Inc 7/31/2009 UOMO OTCB B US D C anada 0 6.6 0.8 (0.4) -54.2% 8.9x - NA
V alueC lick Inc. 9/30/2009 V C LK NasdaqGS US D United S ta tes 9 802.7 545.7 130.8 24.0% 1.2x 4.9x 1,189
V OIS , Inc. 6/30/2009 VOIS OTCB B US D United S ta tes 0 3.3 0.0 (1.0) NM - - 4
W ebzen Inc. 6/30/2009 W ZE N NasdaqGM US D S outh K orea 3.03 35.9 23.2 2.3 9.9% - - 328
W izzard S oftware C orporation 6/30/2009 W ZE AME X US D United S ta tes 0.43 21.7 5.3 (4.5) -84.9% 4.3x - 110
Worlds . com Inc. 6/30/2009 WDDD OTCB B US D United S ta tes 0.10 5.2 0.1 (0.7) NM - - 1
W ynds torm Corpora tion NA W YND OTCP K US D United S ta tes 0.10 1.8 NA NM NM - - NA
XING AG 6/30/2009 O1B C XT R A E UR Germany 34.88 269.3 58.9 17.0 28.8% 3.7x 12.8x 246
YD Online C orp. 12/31/2007 A052770 K OS E KR W S outh K orea 6810.00 85.6 57.4 12.4 21.6% 1.6x 7.6x NA
Ynk K orea Inc. 12/31/2008 A023770 K OS E KR W S outh K orea 3900.00 17.4 11.9 1.3 10.5% - - NA
High 33,542.7 2,002.6 680.3 63.0% 49.2x 34.8x 6,421
Low 0.0 0.0 -41.5 -98.9% - - 1
Average 780.0 161.7 39.9 6.2% 5.2x 10.2x 936Median 41.8 57.1 1.7 12.6% 1.7x 7.6x 246
Figure 1. Web 2.0 Universe Summary Source. Capital IQ
Page 3
CAPIT AL M ARKET S ACT IV I TY (M &A AND F I NANCI NG )
October finishes limping: Total transaction value in the Web 2.0 universe for October is $170.8 (vs. $151.2 mil lion at t ime of last publication). The month ended with 26 financings in the sector averaging $6.6 mil lion each (vs. an average of $7.6 mill ion last week). In comparison, total capital raised in September was $232.8 mill ion, averaging $9.0 mil lion (26 deals); August was $221.6 mill ion, averaging $7.6 mil lion (29 deals); and July (35 deals) $191.4 mill ion, averaging $5.5 mil lion.
Financing Activity Last Twelve Months
9.7
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Figure 2. Financings, Last Twelve Months Source. Company reports
Page 4
Deal round-up for October end: The large deal highlights for the month include:
• DailyMotion – a French online video content provider – raised $25.3 mil lion through a Series C financing.
• Yext – an online directory provider – raised $25 million.
• PopCap Games – a developer of casual games played on multiple types of devices – raised $22.5 mil lion in its f irst round of funding.
• Engine Yard – provider of managed hosting and deployment solutions for Ruby and Rails applications – raised $19 mil lion in a Series C financing.
• Ecast Network – operator of a broadband touch screen network in the U.S. – raised $17 mil lion in a follow-on unattributed financing.
• HubSpot – provider of online enterprise marketing application – received $16 mil lion in Series C financing.
• Jive Software – maker of enterprise collaboration and social community software – raised $12 mill ion in a Series B financing by returning VC fund, Sequoia.
All other deals in the month were in the amount of $10 mill ion or less. For additional details on financings, see Figures 23 and 24 (at end of note).
Financing & M/A Summary - Last Three Months
0.0
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Figure 3. Capital Market Activity, Last Three Months Source. Company reports
Page 5
Social Networks the most active sector: Social Networks experienced the most f inancing activity among our Web 2.0 sector categories in the past three months by number of transactions (12). Advertising continues to be among the highest activity sectors with 11 deals in the past quarter. Gaming follows with nine transactions fol lowed by Collaboration (7) (Figure 4). The $2.0 bill ion acquisit ion of Skype skews the dollars transacted to the SMS/Voice segment, while the $170 mil lion acquisit ion of Mint brings the Vertical Communities segment to the second highest total.
Capital Market Activity by Sector - Last Three Months
2,025.0 192.3 122.0 100.9 97.4 70.3 70.3 46.0 37.5 37.9 35.5 34.0 26.1 17.1 15.8 14.0 13.2 13.0 11.5 3.9 3.6 2.2 2.0 1.30.0
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(US
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# companies
Figure 4. Capital Market Activity, by Sector, Last Three Months Source. Company reports
Page 6
CAPIT AL M ARKET S ACT IV I TY (P RI CE PE RFO RM ANCE )
Web 2.0 index continues to outpace NASDAQ recovery: Our Web 2.0 index (market-cap weighted) essentially mirrored the performance of the NASDAQ composite index from mid-2008 until Q1/09. Since then, the index has diverged in a much stronger recovery relative to the NASDAQ index (Figure 5).
Web 2.0 Index Price Performance
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/2008
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7/2
009
8/1
0/2
009
8/2
4/2
009
9/7
/2009
9/2
1/2
009
10/5
/2009
10/1
9/2
009
11/2
/2009
Index: Web 2.0 (Market Cap) ^COMP - Share Pricing
Figure 5. Web 2.0 Price Performance Source. Capital IQ
Page 7
Broad-based price declines: Eight companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), while 38 companies showed negative 1-week returns.
1 Week Price Performance
-49.5%-24.0%
-13.3%-11.9%-11.1%-11.0%
-9.8%-9.6%-9.1%-8.3%-7.8%-7.1%-6.6%-6.3%-6.0%-5.7%-5.7%-5.4%-4.9%-4.7%-4.3%-4.2%-4.0%-3.9%-3.9%-3.8%-3.6%-3.3%-3.3%-3.1%-3.0%-2.9%-1.9%-1.7%-1.5%-0.9%-0.6%-0.5%
0.0%0.0%0.0%0.7%1.0%
6.0%6.5%6.6%
8.9%9.5%
12.5%
-0.6 -0.5 -0.4 -0.3 -0.2 -0.1 0 0.1 0.2
Digita lTow n, Inc .Openw ave S ys tems Inc .
TheS treet.com, Inc .G igaMedia Ltd.Quepas a Corp.
A ctoz S of t Co. , Ltd.S ohu.com Inc .
S K Communications Co. , Ltd.Ngi Group Inc .
Gamania Digita l Entertainment Co. ,Eolith Co. Ltd.V alueClick Inc .
NetDragon WebS of t, Inc .Open Tex t Corp.
Changyou.com LimitedModern Times Group Mtg A B
Perfect World Co. , Ltd.DADA S pACDC Corp.
NEOWIZ Games CorporationFrogs ter Interactive Pictures AG
Y D Online Corp.Giant Interactive Group, Inc .
HanbitS of t, Inc .United Online Inc .
Tencent Holdings Ltd.GameOn Co Ltd.S hutterf ly , Inc .
AQ Interactive, Inc .Gravity Co. , Ltd
S handa Interactive Entertainment Ltd.The9 L imited
XING AGIAC/InterA ctiveCorp.
LookSmart, Ltd.Tree.Com, Inc .
Fluid Mus ic Canada , Inc .Chines e Gamer International
Cyberplex Inc .K ings of t Co. Ltd.
OAO RBC Information S ys temsNeteas e.com Inc .
Gree, Inc .Mix i, Inc .
PNI Digita l Media Inc .Y nk Korea Inc .
Myriad Group AGWebzen Inc .
S park Netw orks , Inc .
Figure 6. 1-Week Price Performance Source. Capital IQ
Page 8
PUBLI C CO MP ANY I NDUST RY NEWS (P ART NE RS HIPS , F I NANCI AL RE SULT S, NE W P RODUCTS )
Key DevelopmentsCompany Headline Notes
Sohu.com Inc. (NasdaqGS :SOHU) Quarterly Update to S ohu.com, Inc. ’s E quity B uyback on
October 26, 2009
On October 26, 2009, S ohu. com, Inc. announced that during the quarter ending S eptember 30, 2009, it has made no
repurchases under the program. As of S eptember 30, 2009, S ohu has repurchased 501,686 sha res a t an average price of
$39.86 for a tota l cons ideration of $20 million under the program.
Changyou.com L imited
(NasdaqGS :CYOU)
Changyou. com L imited R eports Unaudited Consolidated
E arnings R es ults for the T hird Quarter and Nine Months
E nded S eptember 30, 2009; P rovides E arnings
G uidance for the F ourth Quarter of 2009
Changyou. com Limited reported unaudited consolidated earnings results for the third quarter and nine months ended
S eptember 30, 2009. F or the quarter, the company's total revenues were $68,684,000 agains t $54,604,000 a year ago. T he
increases were mainly due to increased popula rity of the company's flagship game, T LB B . Operating profit was
$42,288,000 agains t $32,474,000 a year ago. Income before income tax expense was $43,288,000 aga ins t $32,791,000 a
yea r ago. Net income was $37,794,000 agains t $32,084,000 a year ago. Diluted net income per ADS was $0.71 agains t
$0. 68 a year ago. Non-GAAP opera ting profit was $45,842,000 agains t $33,725,000 a yea r ago. Non-GAAP net income
was $41,348,000 agains t $33,335,000 a yea r ago. Non-GAAP diluted net income per ADS was $0.77 agains t $0.70 a year
ago. Operating cash flow was a net inflow of $46.2 million.
T he company es timates tota l revenues for the fourth quarter of 2009 to be between $69.0 million and $71.0 million. Non-
GAAP net income for the fourth quarter of 2009 to be between $41.5 million and $42.5 million. Non-GAAP fully diluted
earnings per ADS for the fourth quarter of 2009 to be between $0.78 and $0.80.
Sohu.com Inc. (NasdaqGS :SOHU) S ohu.com Inc. R eports Unaudited C onsolida ted
E arnings R es ults for the T hird Quarter and Nine Months
E nded S eptember 30, 2009; P rovides E arnings
G uidance for the F ourth Quarter of 2009
S ohu.com Inc. reported unaudited consolida ted earnings results for the third quarter and nine months ended S eptember 30,
2009. F or the quarter, the company reported net income a ttributable to company of $37,354,000 or $0. 88 per share on tota l
revenue of $136,585,000 aga ins t net income a ttributable to company was $40,261,000 or $1. 02 per sha re on total revenue
of $120,676,000 in the s ame period of las t year. Opera ting profit was $52,953,000 agains t $43,758,000 in the s ame period
of las t year. Income before income tax expens e was $54,102,000 agains t $45,230,000 in the s ame period of las t year.
Income from continuing operations was $47,080,000 agains t $40,238,000 in the s ame period of las t yea r. As per non-
GAAP , net income attributable to company was $40,921,000 or $0. 96 per share on tota l revenue of $136,585,000 agains t
net income attributable to company was $42,822,000 or $1. 08 per share on tota l revenue of $120,676,000 in the s ame
period of las t year. As per non-GAAP , operating profit was $57,077,000 agains t $46,319,000 in the s ame period of las t yea r.
T he company provided earnings guidance for the fourth quarter of 2009. It es timates tota l revenues to be between
$134.5 million and $138.5 million. I t es timates non-GAAP net income before deducting the sha re of non-GAAP net
income perta ining to the non-controlling interes t in Changyou to be between $49.5 million to $51.5 million. After
deducting the share of non-GAAP net income pertaining to the non-controlling interes t in Changyou, it es timates
non-GAAP net income to be between $35.0 million to $37.0 million and non-GAAP fully diluted earnings per sha re to
be between 90 cents and 95 cents . C ons idering its s hare in Changyou, the es timated impact of this expense is
expected to reduce its fully diluted earnings per share for the fourth quarter of 2009 under US GAAP by US 6 cents to
US 8 cents .
Quepasa Corp. (OTCBB :QPSA) Quepasa Launches Developer Interface and Open
S ocia l S andbox
Quepasa Corp. announced the launch of its Developer Interface and Open S ocia l S andbox. T he launch of the Developer
Interface is pa rt of Quepasa's overall s trategy to open the s ite to third party Open S ocia l developers who would like to
develop applica tions for its global audience. T he company believes that this new Developer Interface and Open S ocia l
S andbox will become an eas y mechanism for developers to tes t and submit their applica tions for inclus ion in the s ite's
Application and/or G ames s ections and thus enhance the overall us er experience and drive s ite traffic and monetiza tion.
T he Developer Interface cons is ts of a toolbox that developers use when submitting an Open S ocia l application for inclus ion
on any s ocia l s ite. T he toolbox includes documentation of the interfaces available, a news area, a community built for the
developers where they can communicate and interact with other application developers as well as with Quepasa's
development team, and the Open S ocia l S andbox where they can tes t completed applications with va lid tes t data .
IAC/InterActiveCorp. (NasdaqGS : IAC I) Update to IAC /InterActiveCorp’s E quity B uyback IAC /InterActiveCorp announced that it has repurchased approximately 5,600,000 shares at an average price of $16.69 per
share during the quarter ended S eptember 30, 2009. T ill J une 30, 2009, IAC has repurchased 22,874,884 shares for a total
cos t of $653.16 million under the program. As of S eptember 30, 2009, the company has repurchased approximately
28, 474,884 shares for a tota l of $746.62 million.
Open Text Corp. (NasdaqGS :OTEX) Open T ext C orp. announces an E quity B uyback Open T ext Corp. (NasdaqGS : OT E X) announced its intention to make a normal course is suer bid through the facilities of
the NAS DAQ G loba l S elect Market on October 27, 2009. Under the bid, Open expects to repurchase approximately up to
2,819,037 s hares . T he maximum number of s hares that may be purchased is calculated as 5% of the outs tanding common
shares of Open T ext at the beginning of the bid. T he repurchases over the NAS DAQ could commence in November 2009 if
des irable. T he bid will expire one year from the commencement date.
IAC/InterActiveCorp. (NasdaqGS : IAC I) IAC /InterActiveC orp. R eports Unaudited C onsolida ted
E arnings R es ults for the T hird Quarter and Nine Months
E nded S eptember 30, 2009
IAC /InterActiveCorp. reported unaudited consolida ted earnings results for the third quarter and nine months ended
S eptember 30, 2009. F or the quarter, the company reported net income attributable to IAC shareholders of $21.6 million or
$0. 16 per diluted share on revenue of $336.5 million agains t net los s attributable to IAC shareholders of $14.8 million or
$0. 11 per diluted share on revenue of $369.2 million a year ago. E a rnings from continuing operations were $23.8 million or
$0. 18 per diluted share aga ins t los s from continuing operations $1.2 million or $0. 01 per diluted share a year ago. Operating
income was $7.1 million agains t operating los s of $22.6 million a year ago. E a rnings from continuing operations before
income taxes were $58.08 million agains t los s from continuing operations before income taxes of $86.6 million a yea r ago.
Adjus ted E P S was $0.34 agains t adjus ted los s per share of $0. 14 a year ago.
Social Media Ventures Inc.
(OTCPK :SMVI)
S ocial Media V entures Inc. S igns Marketing Agreement
with P ets criptions . com
S ocial Media V entures Inc. announce that it has s igned a marketing a ffiliate agreement with P ets criptions .com.
P ets criptions . com is a provider of pharmaceuticals , medicine, and other innovative products for pets . P ets criptions .com
offers pet owners acces s to inexpens ive pet products including medicine and pharmaceutica ls . T he online reta iler offers
direct shipments of pet pharmaceutica ls and other pet supply products directly to its cus tomers , offering cus tomer s avings
on a wide array of pet medicines . All products a re inspected by the K entucky B oard of P harmacy.
Figure 7a. Key Developments Source. Capital IQ
Page 9
Key Developments - continuedCompany Headline Notes
Open Text Corp. (NasdaqGS :OTEX) Open T ext C orp. Announces Unaudited Consolida ted
F inancia l R es ults for the F irs t Quarter E nded S eptember
30, 2009
Open T ext Corp. announced unaudited consolidated financial results for the firs t quarter ended S eptember 30, 2009. T ota l
revenue for the firs t quarter was $211.4 million, up 16% compared to $182.6 million for the s ame period in the prior fis cal
yea r. Adjus ted net income in the quarter was $32.8 million or $0.58 per share on a diluted bas is , up 16% compared to $28.2
million or $0. 53 per share on a diluted bas is for the s ame period in the prior fis cal year. Net income in accordance with U. S .
generally accepted accounting principles was $1.7 million or $0.03 per bas ic and diluted share compared to $14.7 million or
$0. 28 per sha re on a diluted bas is for the s ame period in the prior fis cal yea r. T he company reported income before income
tax of $5.186 million and income from opera tions of $4. 792 million compared to income before income tax of $20.712
million and income from opera tions of $22.977 million for the s ame period of la s t year. T he company reported net cash
provided by opera ting activities of $4.502 million and additions of capita l as s ets , net of $7.665 million compared to net cash
provided by opera ting activities of $24.813
million and additions of capita l a s s ets , net of $3.887 million for the s ame period of las t year.
ValueC lick Inc. (NasdaqGS :VCLK ) V alueC lick Inc. R eports Unaudited C onsolida ted
E arnings R es ults for the T hird Quarter and Nine Months
E nded S eptember 30, 2009 ; P rovides E arnings
G uidance for the F ourth Quarter of 2009
V alueC lick Inc. reported unaudited consolida ted earnings results for the third quarter and nine months ended S eptember
30, 2009. F or the quarter, revenue was $130.2 million, adjus ted-E B ITDA of $33.4 million. T he Company genera ted
approximately $22.6 million in free cash flow in the third quarter, defined as net cash from opera tions les s capita l
expenditures . GAAP net income was $25.0 million, or $0. 29 per bas ic and diluted common share. T he Company recorded
an income tax benefit in the third quarter of 2009 of $2.7 million due to favorable income tax adjus tments recorded in the
quarter. E xcluding these adjus tments and as suming the normalized 42% effective tax rate included in the company's
previous ly-is s ued third quarter guidance, net income would have been $13.0 million, or $0. 15 per diluted common share.
Non-GAAP net income, which excludes dis continued operations , s tock-based compensation and amortization of intangible
as s ets was $30.3 million, or $0. 34 per diluted common share. T he company reported net income of $1.999 million or $0.02
per bas ic and diluted share on revenue of $148.065 million for the third quarter of 2008. T he company reported income before
The company provided earnings guidance for the fourth quarter of 2009. T he company expects adjus ted E B ITDA
of $32 million to $35 million on revenue of $128 million to $138 million for the fourth quarter of 2009. T he company
expects GAAP diluted net income per common share of $0. 15 to $0.16 and Non-GAAP diluted net income per
common s hare of $0.21 to $0.22 for the fourth quarter of 2009.
Shanda Interactive E ntertainment L td.
(NasdaqGS :SNDA)
S handa Interactive E nterta inment Ltd. , Annua l G eneral
Meeting, Oct 28, 2009
S handa Interactive E nterta inment Ltd. , Annua l G enera l Meeting, Oct 28, 2009, at 10:00 CCT -China Coas t, US S R Zone 7.
Location: Is land S hangri-La , Level 7, executive boardroom, P acific P lace, S upreme Court R oad, C entral, Hong K ong.
Agenda: T o elect 8 directors to s erve for the ensuing year or until their s ucces sors are elected and duly qua lified; and to
cons ider any other bus ines s properly brought before the meeting.
Quepasa Corp. (OTCBB :QPSA) Quepasa Corp. - C onference P res entation C a ll T o communicate progres s achieved in developing its bus ines s model
Shutterfly, Inc . (NasdaqGS :S FLY) S hutterfly Inc. R eports C apita l E xpenditure for the T hird
Quarter E nded S ep. 30, 2009; P rovides F ree C ash F low
Outlook for the Y ear 2009
S hutterfly Inc. reported capita l expenditure of $4. 9 million for the third quarter ended S ep. 30, 2009, which included $2.7
million for technology equipment and software, approximately $1. 1 million for manufacturing equipment and building
improvements and $1.1 million in capita lized software development cos ts .
T he company now expects full year 2009 free cash flow to range from approximately $14 million to approximately $22
million.
Open Text Corp. (NasdaqGS :OTEX) Open T ext C orp. Announces New R elease of its
E nterpris e P ortal S olution, V ignette P orta l V ers ion 8.0
Open T ext Corp. announced a new release of its enterpris e porta l s olution, V ignette P ortal vers ion 8. 0. T he s olution allows
organizations to provide cus tomers , employees and partners with a rich internet experience where they can find relevant
and pers onalized information aggregated from multiple bus ines s and cons umer-based s ys tems . V ignette P orta l 8. 0
s implifies the adminis tration and creation of dynamic, content-rich W eb s ites with the ability to rapidly s yndicate porta l
applications acros s W eb properties powered by multiple s ys tems . V ignette P orta l 8 from Open T ext expands on the
vers a tility and rich interoperability a fforded a pioneer in the enterpris e portal space. It helps bus ines ses unify their W eb
software portfolios into s leek, eas y-to-use W eb s ites and allows those s ame bus ines ses to engage cus tomers and partners
with rich and socia lly enabled W eb experiences . T he release of P ortal 8. 0 not only demons trates Open T ext's continued
commitment to V ignette cus tomers and technology, but a ls o enables additional s ocia l media capabilities that a lign with the
company's s tra tegic development of E nterpris e 2. 0 s olutions . Open T ext recently announced that it plans to enhance its E CM S uite with next-generation W eb solutions powered by
technology from its exis ting W eb S olutions and V ignette. B y offering a variety of s olutions , the company will
a llow organizations -regardles s of s ize and indus try-to succes s fully addres s their bus ines s needs .
Tencent Holdings Ltd. (S EHK :700) China Unicom T eams Up with T encent's T enP ay for
Online P ayments
T enpay, an online payment s ervice operated by China's T encent Holdings Ltd. , has s igned a contract with China Unicom
(Hong K ong) Ltd. to provide online payment s ervices . Under the terms of the contract, the carrier's users can use T enpay to
recharge their phones via C hina Unicom's online s ervice center and apply for China Unicom's online value-added s ervices .
T hey can also buy prepaid cards , mobile handsets and 3G data cards from the ca rrier's online s tore. T encent's T enpay
handled €2.53 billion worth of transactions in the s econd quarter of 2009. China Unicom will a ls o use T enpay's e-billing
s ervices to handle payments between online s ervice centers and provincia l divis ions .
OAO RBC Information S ys tems
(R TS :R BC I)
OAO R B C Information S ys tems R eaches $208 Million
Debt R es tructuring Deal
OAO R B C Information S ys tems reached a $208 million debt res tructuring deal with the creditors .
K ingsoft Co. L td. (S EHK :3888) K ingsoft Launches W ap. shouji. cn K ingsoft Co. L td. launched wireles s Internet webs ite wap.s houji.cn in an attempt to offer va rious mobile phone application
s ervices for us ers . S ince the open beta tes ting on October 1, 2009, wap.s houji.cn has been luring 600,000 unique vis itors at
mos t per day, with da ily page view of 2.3 million or s o. T he new s ite, which offers mobile phone-based software, game,
theme, as well a s picture downloading s ervices , will be opened not only to K ings oft users but a ls o to mobile phone users ,
noted an officia l from the Hong K ong-lis ted company. S o far, K ingsoft has joined hands with nearly 100 mobile phone
software companies , collecting approximately 1, 000 kinds of mobile phone software and more than 10,000 mobile phone
games and theme products . T he products can meet the demand of mobile phone users .
Pay88, Inc. (OTCBB :PAYI); S ohu.com
Inc. (NasdaqGS :SOHU)
P ay88, Inc. E nters Dis tribution Agreement with S ohu.com P ay88, Inc. announced that it has entered into a dis tribution agreement with S ohu. com Inc. T hrough its s ubs idiary, Q ianbao
T echnology, P ay88 will act a s a dis tributor of S OHU digita l products , with a pa rticular focus on mobile phone games . As a
result of this new rela tionship, Q ianbao T echnology will now be able to offer mobile games to the domes tic market in China .
Figure 7b. Key Developments – continued Source. Capital IQ
Page 10
Key Developments - continuedCompany Headline Notes
Shutterfly, Inc . (NasdaqGS :S FLY) S hutterfly Inc. R eports Unaudited Consolidated E arnings
R esults for the Third Quarter and Nine Months E nded
S eptember 30, 2009 ; P rovides E arnings G uidance for
the F ourth Quarter and F ull Y ear of 2009
S hutterfly Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended S eptember 30,
2009. F or the quarter, the company reported los s from operations of $9.055 million, los s before income taxes of $9. 003
million and net los s of $6. 346 million or $0.25 per bas ic and diluted share on net revenues of $40. 495 million compared to
the los s from operations of $9. 226 million, los s before income taxes of $8.871 million and net los s of $2.800 million or $0.11
per bas ic and diluted share on net revenues of $35. 953 million for the s ame period a year ago. Adjus ted E B ITDA was $2.0
million, compared to $0.1 million in the third quarter of 2008.
The company provided earnings guidance for the fourth quarter and full year of 2009. F or the quarter, the company expects
that net revenues to range from $102. 6 million to $112.6 million, a year-over-year change of (4% ) to 5% . GAAP operating
income to range from $21 million to $27 million. Non-GAAP operating income to range from $26 million to $32 million.
G AAP diluted net los s per s hare to range from $0.55 to $0.66. Non-GAAP diluted net los s per s hare to range from $0. 68 to $0.78. Adjus ted E B ITDA to range from $33 million to $39 million.
Changyou.com L imited
(NasdaqGS :CYOU)
Changyou.com L imited Opens U .S . S ubs idiary Changyou.com L imited has opened its U.S . s ubs idiary in S ilicon V alley and a ims to introduce its hugely s ucces s ful online
games in As ia to American gamers . T he company's firs t release in the U. S . market Dragon Oath will launch Open B eta
Nov. 5. Dragon Oath, which has run in As ia for over three years , has over 75 million regis tered players and 910, 000
concurrent us ers .
Quepasa Corp. (OTCBB :QPSA) Quepasa Corp. - C onference P resentation C all To communicate progres s achieved in developing its bus ines s model and to inform attendees of the abundant market
opportunity and how company is pos itioned within both the Latino market and socia l networking space.DigitalPos t Interactive, Inc .
(OTCBB :DGLP)
Digita lP os t Interactive, Inc. - C onference P resentation
C all
To dis cus s the company's bus ines s , growth s trategy and outlook, including the opportunities presented by recently
announced contracts with major new bus ines s partners in the photography market
Openwave S ys tems Inc.
(NasdaqGS :OPWV)
Openwave S ys tems Inc. P rovides E arnings G uidance for
the F ull Y ear of F is ca l 2010
Openwave S ys tems Inc. provided earnings guidance for the full year of fis ca l 2010. T he company thinks that the full year of
fis ca l 2010 will be cash flow neutra l to pos itive from operations . T he company will focus on mainta ining a non-GAAP net
income breakeven level until and s ees revenue improvement. S ince the majority of revenue comes from backlog, outlook
for 2010 remains unchanged despite the improvement in firs t quarter of fis ca l 2010. T he company expects 2010 revenue to
be a s us ta ined level as 2009.
J umbuck Entertainment L imited
(ASX:JMB )
J umbuck E nterta inment L imited Announces New
Appointments
J umbuck E nterta inment L imited announced at its AGM held on October 29, 2009, elected Adrian R is ch, B ruce B ennie and
Harvey P arker as directors of the company.
J umbuck Entertainment L imited
(ASX:JMB )
J umbuck E nterta inment L imited, Annual Genera l
Meeting, Oct 29, 2009
J umbuck E nterta inment L imited, Annual G enera l Meeting, Oct 29, 2009, at 15:00 E AS T -E as t Aus tra lian S tandard G S T .
Location: The S ebel Hotel Melbourne, 394 Collins S treet, Melbourne V ic 3000, Aus tra lia . Agenda: To receive and cons ider
the financia l report and the reports of the directors and of the auditor for the financia l year ended J une 30, 2009; to adopt
the remuneration report of the company for the financia l year J une 30, 2009; and to cons ider the election of directors .
Bright Things plc (AIM:BGT) B right T hings plc, Annual G enera l Meeting, Oct 29, 2009 B right Things plc, Annual Genera l Meeting, Oct 29, 2009, at 10:00 GMT T ime. Location: T he offices of F aegre & B enson
LLP , 7 P ilgrim S treet, London E C4V 6LB , United K ingdom. Agenda: To is s ue shares in the Company both pro-rata to
exis ting shareholders and to non-shareholders ; to amend the articles of as sociation of the Company to reflect recent
changes in company legis lation in the UK .
Openwave S ys tems Inc.
(NasdaqGS :OPWV)
Openwave S ys tems Inc. R eports C onsolidated E arnings
R esults for F irs t Quarter E nded S eptember 30, 2009
Openwave S ys tems Inc. announced that revenues for the firs t fis ca l quarter ended S eptember 30, 2009 were $49.8 million,
compared with $47.9 million in the prior quarter ended J une 30, 2009 and $51.0 million in the S eptember quarter in the
preceding fis ca l year. On a GAAP bas is , net income for the firs t fis ca l quarter ended S eptember 30, 2009 was $990, 000, or
$0.01 per s hare, compared with a net los s of $3. 4 million, or $0. 04 per s hare, in the prior quarter and a net los s of $10.5
million, or $0. 13 per s hare, in the S eptember quarter in the preceding year. On a non-GAAP bas is , net los s for the firs t
fis ca l quarter ended S eptember 30, 2009 was $380, 000, or $0.00 per s hare, compared with net los s of $278,000 or $0.00
per s hare, in the prior quarter and net los s of $1.0 million, or $0.01 per s hare, during the S eptember quarter of the prior
year. Operating los s from continuing operations for the period was $1. 8 million agains t $5.5 million for s ame period a year
ago. P re-tax los s from continuing operations was $3. 0 million agains t $12.0 million for s ame period a year ago. Net los s
from continuing operations was $3.5 million or $0.04 per
diluted share agains t net los s from continuing operations was $12.5 million or $0. 15 per diluted share for s ame period
a year ago. Net cash us ed in operating activities for the period was $8.8 million agains t $2. 9 million for s ame period a
year ago. P urchases of property and equipment, net for the period was $607, 000 agains t $477,000 for s ame period a
year ago.
Northgate Technologies L imited
(BSE :590057)
Northgate T echnologies L imited, B oard Meeting, Oct 30,
2009
Northgate T echnologies L imited, B oard Meeting, Oct 30, 2009 Agenda: To cons ider and take on record the unaudited
financia l results for the quarter and half year ended S eptember 30, 2009.
DigitalFX International, Inc .
(OTCBB :DGFX)
S usan Hantman R es igns from the B oard of Directors of
Digita lF X International, Inc.
Digita lFX Interna tional, Inc. announced that it has received a letter from S usan Hantman dated October 21, 2009, informing
about her res ignation from the company's B oard of Directors .
VOIS , Inc . (OTCBB :VOIS ) V OIS , Inc. Announces Management Changes ;
Approves Articles of Amendment to Its Articles of
Incorporation
On October 30, 2009 Mr. Herbert T abin, a member of the B oard of Directors and S enior V ice P res ident - Corporate
Development of VOIS , Inc. res igned his pos itions as an executive officer and director of the company. T here were no
dis agreements between the company and Mr. T abin on any matter. T he B oard of Directors appointed Mr. Mark B . Lucky to
the B oard to fill the vacancy res ulting from Mr. T abin's res ignation and appointed Mr. Lucky and S ecretary. Mr. Lucky has
s erved as the Chief F inancia l O fficer of IceW E B Inc. s ince March 2007.
On October 29, 2009 the B oard of Directors of V OIS Inc. approved Articles of Amendment to its Articles of Incorporation
changing the par va lue of VOIS ' common s tock from $0.001 per s hare to $0. 00001 per s hare. P urs uant to the provis ions of
the F lorida B us ines s Corporations Act no shareholder consent was required for this action.
Wizzard Software Corporation
(AMEX:WZE )
W izzard S oftware Corporation has filed a S helf
R egis tration in the amount of $0.82 million.
W izzard S oftware Corporation has filed a S helf R egis tration in the amount of $0. 82 million.
Tree.Com, Inc . (NasdaqGM:TR EE ) T ree.Com Inc. Announces Unaudited Consolidated
F inancia l R esults for the T hird Quarter and Nine Months
E nded S eptember 30, 2009
T ree.Com Inc. announced unaudited consolidated financia l results for the third quarter and nine months ended S eptember
30, 2009. F or the quarter, the company reported tota l revenue of $50,716,000, opera ting los s of $7,442, 000, los s before
income taxes of $7, 582,000, net los s of $7,400,000 or $0. 68 per diluted share agains t tota l revenue of $50,258, 000,
operating los s of $22,455,000, los s before income taxes of $22,624, 000, net los s of $22, 551,000 or $2.41 per diluted share
a year ago. Adjus ted E B ITDA was a los s of $3. 5 million, which was a $4.8 million improvement year-over-year, from the
third quarter 2008 adjus ted E B ITDA los s of $8.3 million.
Uniserve Communications Corp.
(TSXV:USS )
Unis erve C ommunications Corp. Announces
C onsolidated Unaudited E arnings R esults for the F irs t
Quarter E nded Augus t 31, 2009
Unis erve Communications Corp. announced consolidated unaudited earnings results for the firs t quarter ended Augus t 31,
2009. F or the quarter, the company reported revenues of CAD 3,986, 059 compared to CAD 5,138,741 for the s ame period
a year ago. Operating income was CAD compared to opera ting los s of CAD 265,134 for the s ame period a year ago. Los s
before income taxes from continuing was CAD 213,649 compared to CAD 1,421, 510 for the s ame period a year ago. Net
los s and comprehens ive los s for the period from continuing operations was CAD 238,058 or C AD or CAD per s hare per
s hare compared to CAD 1,354, 310 or CAD 0.06 per s hare for the s ame period a year ago. Net los s and comprehens ive
los s for the period was CAD 238,058 or CAD 0. 01 per s hare compared to CAD 1,960, 037 or CAD 0.08 per s hare for the
s ame period a year ago. Net cash provided by operating activities was CAD 102,980 compared to CAD 825,239 for the
s ame period a year ago. P urchase of property and equipment was C AD 49, 073 compared to CAD 46, 381 for the s ame
period a year ago.
Perfect World Co., Ltd.
(NasdaqGS :PWRD)
P erfect W orld Co. , L td. Announces B oard Changes P erfect W orld Co. , L td. announced the appointment of Mr. Daniel Dong Y ang as an independent director to the company's
B oard of Directors . Mr. Daniel Dong Y ong has been a partner of S A IF P artners , s ince 2004 and s erved as a director from
2001 to 2004. He currently s erves as a director of s evera l companies , s uch as MainOne Information T echnology Co. , L td.
and Mobi Antenna T echnologies (S henzhen) C o. , L td. The company a ls o announced that Mr. Louis T . Hs ieh recently
s tepped down from his pos ition as a member of the B oard of Directors of the company.
United Online Inc . (NasdaqGS :UNTD) United Online Declares Quarterly Dividend P ayable on
November 30, 2009
United Online Inc. announced that its B oard of Directors has declared a quarterly cash dividend of $0.10 per s hare. T he
dividend is payable on November 30, 2009 to s hareholders of record on November 13, 2009.
Figure 7c. Key Developments – continued Source. Capital IQ
Page 11
VAL UAT IO N
Online Gaming companies lead market-cap charts: Fourteen companies in our Web 2.0 universe top US$1 bill ion in market capitalization (Figure 8). Fifty-eight of the 89 companies have market caps under US$100 mil lion, with 38 under US$25 mill ion. Online gaming companies dominate the top of the l ist, led by Tencent Holdings (SEHK:700) with a market cap of approximately US$33.5 bill ion.
Market C ap (USD m)
0.00.00.00.00.20.40.60.70.91.11.21.82.02.32.53.33.94.25.25.45.75.96.66.87.38.38.510.914.515.315.417.417.821.321.521.722.122.127.628.532.235.938.241.641.843.656.659.362.865.871.171.573.883.685.686.487.792.1105.2167.7172.0196.2209.7209.8217.0222.0247.4249.1269.3271.0326.7365.3659.0681.9802.71058.11104.81345.81644.0
2072.72082.22178.92510.12548.32906.33039.94878.133542.7
1669.3
0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000
S oc ial Media V entures Inc .Dibz Internationa l, Inc .S NM G lobal Holdings
China Gatew ay CorporationThe Parent Company
A s s ociated Media Holdings Inc .KA B Dis tribution Inc .
CLICKER Inc .Betaw ave Corporation
Unis erve Communications Corp.L iveWorld Inc .
Wynds torm CorporationB igs tring Corp.
S NAP Interac tive, Inc .B roadWebAs ia Inc .
V OIS , Inc .DigitalPos t Interac tive, Inc .B eyond Commerce, Inc .
Worlds .com Inc .Magnitude Information S ys tems Inc .
CornerWorld CorporationB right Things plcUOMO Media, Incis eemedia Inc .
S pectrumDNA , Inc .MOKO.mobi L imited
IAS Energy , Inc .L ingo Media Corporation
Jumbuck Entertainment L imitedQuepas a Corp.
A cceleriz e New Media, Inc .Y nk K orea Inc .Ex tens ions , Inc .
Northgate Technologies L imitedDolphin Digital Media , Inc .
Wiz z ard S oftw are CorporationLookSmart, L td.S oc ialw is e, Inc .Digita lTow n, Inc .
AQ Interac tive, Inc .Eolith Co. L td.Webzen Inc .
Ngi G roup Inc .DXN Holdings Bhd
NeXplore CorporationGravity Co. , Ltd
PNI Digita l Media Inc .S park Netw orks , Inc .
HanbitS oft, Inc .GeoS entric Oy j
NeuLion IncorporatedFrogs ter Interactive Pic tures AG
TheS treet.com, Inc .Cyberplex Inc .
Y D Online Corp.Fluid Mus ic Canada, Inc .
Tree.Com, Inc .GameOn Co L td.
A ctoz S oft Co. , L td.DADA S pA
Openw ave S ys tems Inc .The9 L imited
Myriad Group AGGamania Digital Enterta inment Co. ,
G igaMedia L td.OAO RBC Information S ys temsS K Communications Co. , L td.
CDC Corp.XING AG
GungHo Online Entertainment, Inc .NetDragon WebS oft, Inc .
S hutterf ly , Inc .United Online Inc .
NEOWIZ Games CorporationV alueClick Inc .
K ings oft Co. L td.Chines e Gamer International
Mix i, Inc .G iant Interactive Group, Inc .
Changyou.com L imitedS ohu.com Inc .
Open Tex t Corp.Perfect World Co. , L td.IAC/InterActiveCorp.
Gree, Inc .Modern Times Group Mtg AB
S handa Interactive Entertainment L td.Neteas e.com Inc .
Tencent Holdings L td.
Figure 8. Market Cap Ranking Source. Capital IQ
Page 12
TEV/Revenue (LTM) averages 5.3x: The overall average TEV/Revenue (LTM) multiple for our group is 5.3x (vs. 6.1x last week) (Figure 9). As the past week saw broad-based share price decline, we now see four companies (vs. five last week) trading above 25x revenue – Bigstring Corp. (OTCBB:BSGC) at 49.2x, Dolphin Digital Media, Inc. (OTCBB:DPDM) at 38.6x, NexPlore Corporation (OTCPK:NXPC) at 27.0x, and Tencent Holdings Ltd. (SEHK:700) at 26.6x. The median of 1.7x is below last week’s 1.9x multiple. Note that we exclude multiples greater than 50x. Thirty-two companies have multiples under 1.5x.
TEV/LTM R evenue (x)
0.0 0.0 0.0 0.1 0.1 0.2 0.2 0.2 0.2 0.3 0.3 0.4 0.4 0.5 0.6 0.7 0.7 0.7 0.7 0.7 0.8 0.8 0.9 0.9 1.0 1.1 1.1 1.1 1.2 1.3 1.3 1.4 1.6 1.7 2.0 2.0 2.2 2.4 2.6 2.6 2.8 3.1 3.2 3.3 3.7 3.74.3 4.54.6 5.3 5.97.3 7.6
8.3 8.9 9.010.6
12.112.6
15.315.616.8
26.627.0
38.6
49.2
Average, 5.3
0.0
10.0
20.0
30.0
40.0
50.0
60.0
LiveWorld Inc.
China Gateway Corporation
OAO RBC Information Systems
AQ Interactive, Inc.
TheStreet.com, Inc.
SNAP Interactive, Inc.
GameOn Co Ltd.
The Parent Company
Uniserve Communications Corp.
Northgate Technologies Limited
CLICKER Inc.
Openwave Systems Inc.
Tree.Com, Inc.
Jumbuck Entertainment Limited
IAC/InterActiveCorp.
Actoz Soft Co., Ltd.
CDC Corp.
Perfect World Co., Ltd.
Cyberplex Inc.
DXN Holdings Bhd
GigaMedia Ltd.
HanbitSoft, Inc.
Beyond Commerce, Inc.
DADA SpA
United Online Inc.
SNM Global Holdings
Spark Networks, Inc.
Shutterfly, Inc.
ValueClick Inc.
SK Communications Co., Ltd.
Gamania Digital Entertainment Co., Ltd.
Ynk Korea Inc.
YD Online Corp.
Modern Times Group Mtg AB
GungHo Online Entertainment, Inc.
NetDragon WebSoft, Inc.
Eolith Co. Ltd.
CornerWorld Corporation
PNI Digital Media Inc.
Open Text Corp.
NeuLion Incorporated
Sohu.com Inc.
NEOWIZ Games Corporation
Myriad Group AG
XING AG
iseemedia Inc.
Wizzard Software Corporation
Social Media Ventures Inc.
Accelerize New Media, Inc.
Changyou.com Limited
DigitalPost Interactive, Inc.
Frogster Interactive Pictures AG
Kingsoft Co. Ltd.
Lingo Media Corporation
UOMO Media, Inc
Mixi, Inc.
MOKO.mobi Limited
GeoSentric Oyj
Associated Media Holdings Inc.
Fluid Music Canada, Inc.
Gree, Inc.
Chinese Gamer International
Tencent Holdings Ltd.
NeXplore Corporation
Dolphin Digital Media, Inc.
Bigstring Corp.
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 (18), trading at an average multiple of 12.6x (vs. 16.3x last week). On a geographic basis, the United States has the most companies (38), trading at an average of 6.9x revenue (vs. 8.7x last week) (Figure 11). Ten of the companies are Canadian (average 4.1x revenue).
Average TEV/LTM Revenue - By Exchange
0.0 0.00.00.30.3
0.70.91.61.71.72.02.73.33.75.55.66.2
6.36.5
9.0
12.112.1
12.6
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
OT
CB
B
HLS
E
SE
HK
GT
SM
OT
CP
K
TS
X
TS
E
XT
RA
AS
X
TS
XV
SW
X
AM
EX
OS
E
OM
KO
SE
Nasda
qG
S
CM
KLS
E
Nasda
qG
M
BS
E
RT
S
AIM
NY
SE
18 1 3 2 11 4 5 2 2 4 1 2 1 1 6 14 1 1 5 1 1 1 1
(x)
# Companies
Average TEV/LTM Revenue - By Country
0.0 0.0 0.00.7 0.3
0.70.91.71.7
3.34.1
5.45.55.66.36.9
7.5
12.1
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
Fin
land
Chin
a
Unite
d
Taiw
an
Germ
any
Austr
alia
Japan
Canada
Sw
itzerland
Sw
eden
South
Italy
Mala
ysia
Hong K
ong
India
Russia
Unite
d
Gra
nd T
ota
l
1 10 38 3 2 2 6 10 1 1 8 1 1 1 1 1 1 88
(x)
# Companies
Figures 10 & 11. TEV/Revenue Ranking (Exchange, Country) Source. Capital IQ
Page 13
TEV/EBITDA (LTM) averages 10.6x: The average multiple for the 35 companies with positive EBITDA (and multiples under 100x) is 10.6x LTM EBITDA (vs. 11.8x last week), led by HanbitSoft, Inc. (KOSE:A047080) 34.8x multiple (Figure 12). Twenty-one companies have EBITDA multiples under 7x. The median multiple is 8.6x (vs. 9.9x last week).
TEV/LTM EB ITDA (x)
0.4 0.7 0.9 1.1 1.22.8
4.5 4.7 4.9 5.1 5.36.6 6.8 7.0 7.0 7.4 7.6
8.6 8.9 9.0 9.7 10.2 10.511.9 12.1 12.2 12.8 13.2
17.2
19.7
23.6
25.9 26.5
29.8
34.8
A verage, 10.6
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
OAO RBC Information Systems
SNAP Interactive, Inc.
GameOn Co Ltd.
Jumbuck Entertainment Limited
Perfect World Co., Ltd.
Actoz Soft Co., Ltd.
United Online Inc.
TheStreet.com, Inc.
ValueClick Inc.
DXN Holdings Bhd
Spark Networks, Inc.
Cyberplex Inc.
DADA SpA
NetDragon WebSoft, Inc.
Sohu.com Inc.
Gamania Digital Entertainment Co., Ltd.
YD Online Corp.
Changyou.com Limited
GungHo Online Entertainment, Inc.
Shutterfly, Inc.
CDC Corp.
Open Text Corp.
IAC/InterActiveCorp.
Openwave Systems Inc.
NEOWIZ Games Corporation
Modern Times Group Mtg AB
XING AG
Ynk Korea Inc.
Kingsoft Co. Ltd.
SK Communications Co., Ltd.
PNI Digital Media Inc.
Gree, Inc.
Mixi, Inc.
Chinese Gamer International
HanbitSoft, Inc.
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 (18), trading at an average multiple of 0.7x. On a geographic basis, the United States has the most companies (38), trading at an average of 6.8x EBITDA (Figure 14). Ten of the companies are Canadian (average 13.5x EBITDA).
Average TEV/LTM EBITDA - By Exchange
0.40.71.1
4.75.15.36.66.88.08.9
12.112.213.5
15.617.818.6
23.6
0.0
5.0
10.0
15.0
20.0
25.0
TS
XV
GT
SM
TS
E
KO
SE
XT
RA
OM
SE
HK
OS
E
NasdaqG
S
CM
TS
X
AM
EX
KLS
E
NasdaqG
M
AS
X
OT
CB
B
RT
S
4 2 5 6 2 1 3 1 14 1 4 2 1 5 2 18 1
(x)
# Companies
Average TEV/LTM EBITDA - By Country
1.1 0.00.4
5.16.8
6.88.29.7
12.213.513.515.6
15.6
18.6
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
Taiw
an
South
Kore
a
Japan
Germ
any
Canada
Sw
eden
Hong K
ong
Chin
a
Italy
Unite
d
Sta
tes
Mala
ysia
Austr
alia
Russia
Sw
itzerland
3 8 6 2 10 1 1 10 1 38 1 2 1 1
(x)
# Companies
Figures 13 & 14. TEV/EBITDA Ranking (Exchange, Country) Source. Capital IQ
Page 14
P/E (LTM) averages 18.8x: The average multiple for the 33 companies with positive earnings (and multiples under 100x) is 18.8x LTM EPS (vs. 19.0x last week), led by Tencent Holdings Ltd. (SEHK:700) with a 68.5x multiple (Figure 15). Fourteen companies have P/E multiples under 10x. The median is 11.3x.
P/E LTM (x)
0.0 0.02.0 2.2 2.2 2.8 3.0 4.0 4.1
6.9 7.5 8.6 9.1 9.2 10.7 11.2 11.3 12.3 13.314.9 15.6 16.2
18.020.0 21.1
27.7
35.539.2
45.4
54.0
58.6
65.468.5
A verage, 18.8
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
Gravity Co., Ltd
Webzen Inc.
Giant Interactive Group, Inc.
Shanda Interactive Entertainment Ltd.
The9 Limited
Netease.com Inc.
Perfect World Co., Ltd.
SNAP Interactive, Inc.
Jumbuck Entertainment Limited
DXN Holdings Bhd
Cyberplex Inc.
GigaMedia Ltd.
YD Online Corp.
GameOn Co Ltd.
IAC/InterActiveCorp.
HanbitSoft, Inc.
Changyou.com Limited
Sohu.com Inc.
NetDragon WebSoft, Inc.
Actoz Soft Co., Ltd.
Modern Times Group Mtg AB
Spark Networks, Inc.
Gamania Digital Entertainment Co., Ltd.
Worlds.com Inc.
Kingsoft Co. Ltd.
XING AG
NEOWIZ Games Corporation
Chinese Gamer International
Open Text Corp.
Gree, Inc.
GungHo Online Entertainment, Inc.
Mixi, Inc.
Tencent Holdings 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 (18), trading at an average multiple of 12.0x. On a geographic basis, the United States has the most companies (38), trading at an average of 12.7x earnings (Figure 17). Ten of the companies are Canadian (average 26.5x EPS).
Average P/E - By Exchange
0.02.0
4.16.97.510.912.015.6
16.218.0
28.628.9
34.342.9
58.6
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
OS
E
TS
E
SE
HK
XT
RA
GT
SM
KO
SE
AM
EX
OM
OT
CB
B
Nasda
qG
S
TS
X
KLS
E
AS
X
NY
SE
Nasda
qG
M
1 5 3 2 2 6 2 1 18 14 4 1 2 1 5
(x)
# Companies
Figures 16 & 17. P/E Ranking (Exchange, Country) Source. Capital IQ
Average P/E - By Country
0.00.0
4.16.9
12.012.713.9
15.6
21.926.528.9
46.8
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
Japan
Germ
any
Canada
Taiw
an
Sw
eden
Chin
a
Unite
d
Sta
tes
South
Kore
a
Mala
ysia
Austr
alia
Sw
itzerland
Italy
6 2 10 3 1 10 38 8 1 2 1 1
(x)
# Companies
Page 15
UP CO MI NG EVE NTS
Earnings CalendarCompany Date Time Quarter Conf Call Details
United Online Inc. (NasdaqGS:UNTD) Nov-04-2009 5:30 p.m. EST Q3/09 877-718-5098
Spark Networks, Inc. (AMEX:LOV) Nov-05-2009 4:30 p.m. EST Q3/09 800-723-6604
Cyberplex Inc. (TSX:CX) Nov-10-2009 4:30 p.m. EST Q3/09 888-892-3255
Figure 18. Earnings Calendar Source. Company reports
Page 16
Comparable Company Analys is > Web 2.0
Price Performance
Company Name Currency Ticker E xchange USD Market C ap ($m) Current P rice 1 Wk 1 Mth 3 Mth 6 Mth 1 Yr 52 Week
Accelerize New Media, Inc. US D ACLZ OTC B B 15.4 0.55 0.0% -8.3% -1.8% 25.0% 37.5% -20.3%
Actoz S oft C o. , L td. K R W A052790 K OS E 105.2 14,500 -11.0% -19.4% -39.8% 0.7% 52.6% -59.7%
AQ Interactive, Inc. J P Y 3838 T S E 28.5 46,800 -3.3% -6.3% -21.7% -0.3% 5.1% -43.6%
Associated Media Holdings Inc. US D AS MH OTC P K 0.4 0.01 0.0% -35.7% -35.7% 500.0% 200.0% -55.0%
B igs tring Corp. US D B S GC OTC B B 2.0 0.03 -10.5% -5.6% 30.8% 36.0% 36.0% -40.4%
B etawave C orporation US D BWAV OTC B B 0.9 0.03 -20.0% -60.0% -54.3% -75.4% -85.5% -89.0%
B eyond Commerce, Inc. US D B YOC OTC B B 4.2 0.08 -25.5% -39.3% -77.2% -94.1% -95.7% -95.8%
B right T hings plc GB P AIM:BG T AIM 5.9 0.01 10.0% 0.0% -15.6% -31.3% 12.2% -44.3%
B roadWebAs ia Inc. US D BW BA OTC P K 2.5 0.03 0.0% -87.0% -87.0% -91.4% -97.8% -99.0%
CDC C orp. US D CHIN.A NasdaqG S 249.1 2.35 -4.9% -4.9% -24.7% 52.6% 104.3% -40.1%
Changyou.com Limited US D CYOU NasdaqG S 1,669.3 30.35 -6.0% -6.7% -19.7% -6.3% NM -37.3%
China Gateway C orporation US D CGWY OTC P K 0.0 0.00 -86.7% -86.7% -86.7% 0.0% -80.0% -93.3%
Chines e Gamer International TWD GTS M:3083 G T S M 1,104.8 426.00 -0.5% -9.4% 3.8% 91.0% 407.1% -17.9%
C LICK E R Inc. US D CLK Z OTC B B 0.7 0.01 6.3% -22.7% 23.2% 88.9% -97.9% -97.9%
CornerW orld Corporation US D CW R L OTC B B 5.7 0.06 0.0% 0.0% 20.0% -57.1% -70.0% -87.2%
C yberplex Inc. CAD TS X:CX T S X 83.6 1.39 0.0% 6.9% -14.7% -18.7% 247.5% -30.2%
DADA S pA E UR CM:DA CM 167.7 7.07 -5.4% 4.8% 15.8% 5.4% -4.5% -13.7%
DXN Holdings B hd MYR DXN K LS E 41.6 0.64 1.6% 5.8% 58.8% 54.9% 86.8% -8.0%
Dibz International, Inc. US D DIB Z OTC P K 0.0 0.00 20.0% NM 20.0% -88.0% -97.6% -97.6%
DigitalP os t Interactive, Inc. US D DG LP OTC B B 3.9 0.05 -9.1% -10.7% 4.2% 212.5% 42.9% -49.5%
DigitalT own, Inc. US D DGTW OTC BB 27.6 1.01 -49.5% -49.5% -32.7% -59.6% -59.6% -71.1%
Dolphin Digital Media, Inc. US D DPDM OTC BB 21.5 0.40 -18.4% 0.0% -4.8% -29.8% -54.0% -57.9%
E olith C o. L td. K R W A041060 K OS E 32.2 530.00 -7.8% -27.4% -35.4% -42.1% -3.6% -54.3%
E xtens ions , Inc. US D E XT I OTC P K 17.8 0.40 60.0% 100.0% 100.0% 166.7% 300.0% -60.4%
F luid Mus ic C anada, Inc. CAD TS X:FMN TS X 86.4 1.79 -0.6% 27.9% 88.4% 225.5% 411.4% -16.7%
F rogs ter Interactive P ictures AG E UR FR G XTR A 71.5 19.05 -4.3% 6.5% 43.2% 124.1% 349.3% -11.4%
G amania Digita l E ntertainment Co. , L td. TWD 6180 G T S M 209.8 44.80 -8.3% -6.4% -24.5% 28.0% 213.3% -34.9%
G ameOn Co L td. J P Y 3812 T S E 92.1 85,200 -3.6% -3.8% -20.8% -11.8% -15.6% -43.9%
GeoS entric Oyj E UR GE O1V HLS E 65.8 0.05 0.0% 0.0% 25.0% 25.0% 25.0% -16.7%
G iant Interactive G roup, Inc. US D GA NYS E 1,644.0 7.26 -4.0% 10.2% -13.6% -14.6% 8.8% -24.1%
G igaMedia L td. US D G IGM NasdaqG S 217.0 3.98 -11.9% -15.0% -23.0% -40.6% -31.4% -48.5%
G ravity Co. , Ltd US D GR VY NasdaqGM 43.6 1.57 -3.1% -11.8% -6.5% 60.2% 106.6% -40.3%
G ree, Inc. J P Y T S E :3632 T S E 2,548.3 5, 090 1.0% 12.9% 30.7% 84.4% NM -4.9%
GungHo Online E ntertainment, Inc. J P Y 3765 OS E 271.0 211,500 -4.3% -10.2% 0.5% 53.6% 101.6% -24.4%
HanbitS oft, Inc. K R W A047080 K OS E 62.8 3,420 -3.9% -17.8% -23.0% -24.3% 18.5% -48.5%
IAC /InterActiveC orp. US D IAC I NasdaqG S 2,510.1 19.02 -1.7% -0.8% 3.8% 19.1% 14.3% -10.6%
IAS E nergy, Inc. US D IAS A.E OTC B B 8.5 0.12 14.3% 0.0% -33.3% -53.8% 33.3% -57.1%
is eemedia Inc. CAD IE E T S XV 6.8 0.15 3.6% 11.5% 107.1% 20.8% 20.8% -9.4%
J umbuck E ntertainment L imited AUD AS X: JMB AS X 14.5 0.34 0.0% -11.7% -10.5% -15.0% -20.0% -32.0%
K AB Dis tribution Inc. CAD TS X:K AB T S X 0.6 0.01 -50.0% -99.2% -99.2% -98.6% -99.4% -99.4%
K ingsoft C o. L td. HK D 3888 S E HK 1,058.1 7.51 0.0% 8.7% -13.0% 98.2% 270.0% -20.7%
L ingo Media Corporation CAD TS XV :LM TS XV 10.9 0.95 -5.0% -9.5% -17.4% 8.0% -20.2% -34.9%
L iveW orld Inc. US D LVWD OTC P K 1.2 0.04 -2.4% 14.3% 60.0% -33.3% -50.0% -84.0%
LookS mart, L td. US D LOOK NasdaqGM 22.1 1.29 -1.5% 12.2% -4.0% -7.9% -26.7% -29.9%
Magnitude Information S ys tems Inc. US D MAGY OTC B B 5.4 0.01 20.0% 33.3% 84.6% -7.7% 0.0% -60.0%
Mixi, Inc. J P Y 2121 T S E 1,345.8 781,000.00 6.0% 39.0% 15.9% 72.4% 9.8% -0.4%
Modern T imes G roup Mtg AB S E K MTG B OM 2,906.3 307.10 -5.7% 5.9% 11.9% 34.4% 61.2% -9.7%
MOKO.mobi L imited AUD MKB AS X 8.3 0.09 13.9% 38.5% 38.5% 28.6% 125.0% -10.0%
Myriad G roup AG CHF MYR N S WX 209.7 4.89 8.9% 6.8% 29.7% -5.0% -30.1% -34.8%
NE OW IZ G ames Corporation K R W A095660 K OS E 681.9 38,600.00 -4.7% -9.5% 14.0% 29.7% 432.4% -14.0%
NetDragon WebS oft, Inc. HK D 777 S E HK 326.7 4.79 -6.6% -5.0% -24.6% -11.3% 97.9% -33.0%
Netease. com Inc. US D NTE S NasdaqG S 4,878.1 37.69 0.7% -14.2% -16.8% 17.7% 73.5% -22.3%
NeuLion Incorporated CAD TS X:NLN T S X 71.1 0.70 -2.8% -30.0% -14.6% -6.7% 27.3% -46.2%
NeXplore Corporation US D NXP C OTC P K 41.8 0.75 7.1% 7.1% 7.1% 7.1% -21.1% -48.3%
Ngi G roup Inc. J P Y 2497 T S E 38.2 27,550.00 -9.1% 9.5% -16.9% -25.1% -63.8% -68.3%
Northgate T echnologies L imited INR 590057 B S E 21.3 29.30 -21.7% -32.0% -25.2% -26.4% -61.4% -64.3%
Open T ext Corp. US D OTE X NasdaqG S 2,082.2 36.93 -6.3% -0.5% -4.4% 19.6% 32.1% -10.9%
Openwave S ys tems Inc. US D OPWV NasdaqG S 172.0 2.06 -24.0% -17.9% -20.2% 63.5% 178.4% -34.2%
P erfect W orld Co. , Ltd. US D PW R D NasdaqG S 2,178.9 43.24 -5.7% -3.8% 13.8% 125.6% 140.4% -14.4%
P NI Digital Media Inc. CAD TS XV :P N T S XV 56.6 1.80 6.5% -6.2% 16.1% 16.1% -10.0% -22.4%
Quepasa C orp. US D QP S A OTC B B 15.3 1.20 -11.1% -20.0% 0.0% 23.7% -47.8% -48.9%
OAO R BC Information S ys tems US D R BC I R T S 222.0 1.60 0.0% 6.7% 52.4% 62.4% 6.7% -5.9%
S handa Interactive E nterta inment L td. US D S NDA NasdaqG S 3,039.9 45.20 -3.0% -6.0% -10.7% -10.5% 84.1% -30.5%
S hutterfly, Inc. US D S F LY NasdaqG S 365.3 14.24 -3.3% -9.0% -6.0% 12.8% 100.3% -21.5%
S K C ommunications C o. , L td. K R W A066270 K OS E 247.4 7,050.00 -9.6% -20.3% -26.0% -25.0% 35.6% -45.1%
S NAP Interactive, Inc. US D S TV I OTC B B 2.3 0.21 -40.0% -40.0% 5.0% -67.7% -47.5% -80.6%
S NM G loba l Holdings US D S NMN OTC P K 0.0 0.00 0.0% 0.0% -70.0% -50.0% -99.2% -99.3%
S ocial Media V entures Inc. US D S MV I OTC P K 0.0 0.01 -22.0% -88.3% -96.9% 17.0% -99.6% -99.8%
S ocialwis e, Inc. US D S CLW OTC B B 22.1 0.50 -13.8% -18.0% -24.2% 2.0% -73.0% -75.0%
S ohu.com Inc. US D S OHU NasdaqG S 2,072.7 54.07 -9.8% -16.3% -14.0% -2.4% 4.4% -25.2%
S park Networks , Inc. US D LOV AME X 59.3 2.88 12.5% 29.1% 16.6% 0.3% -1.7% -8.6%
S pectrumDNA, Inc. US D S P XA OTC B B 7.3 0.15 50.0% 15.4% 7.1% -40.0% -37.5% -66.7%
T encent Holdings Ltd. HK D 700 S E HK 33,542.7 143 -3.8% 16.4% 29.7% 94.6% 175.2% -5.9%
T he P arent Company US D K IDS .Q OTC P K 0.2 0.01 0.0% -42.1% -30.0% -44.0% -99.2% -99.3%
T he9 L imited US D NC TY NasdaqG S 196.2 7.82 -2.9% 3.1% -17.1% -17.3% -39.8% -53.0%
T heS treet.com, Inc. US D T S CM NasdaqGM 73.8 2.41 -13.3% -17.7% 16.4% 14.8% -33.4% -40.8%
T ree.C om, Inc. US D TR E E NasdaqGM 87.7 8.05 6.5% 3.2% -16.0% -31.5% 259.4% -38.4%
Unis erve Communications Corp. CAD TS XV :US S T S XV 1.1 0.05 25.0% 25.0% -50.0% 25.0% -72.2% -50.0%
United Online Inc. US D UNTD NasdaqG S 659.0 7.86 -9.4% 1.9% -13.1% 9.2% 6.9% -16.9%
UOMO Media, Inc US D UOMO OTC BB 6.6 0.08 -24.0% -37.2% -52.5% -49.3% -60.0% -92.8%
V alueC lick Inc. US D VCLK NasdaqG S 802.7 9.21 -27.5% -27.7% -20.8% -10.1% 43.2% -33.9%
VOIS , Inc. US D VOIS OTC B B 3.3 0.00 -42.9% 0.0% -21.6% 25.0% -46.7% -82.6%
W ebzen Inc. US D WZE N NasdaqGM 35.9 3.03 3.8% 18.8% -9.8% 10.9% 203.0% -35.3%
W izzard S oftware C orporation US D WZE AME X 21.7 0.43 2.4% -6.5% -12.2% -25.9% -46.3% -75.1%
Worlds .com Inc. US D WDDD OTC B B 5.2 0.10 0.0% -16.7% -23.1% -54.5% -58.3% -58.3%
W ynds torm C orporation US D WYND OTC P K 1.8 0.10 0.0% 0.0% 0.0% 11.1% -50.0% -80.4%
XING AG E UR O1BC XT R A 269.3 34.88 -4.2% -1.8% 26.3% 16.7% 44.4% -8.2%
YD Online C orp. K R W A052770 K OS E 85.6 6,810.00 -12.1% -20.9% -26.6% -22.5% 14.5% -45.1%
Ynk K orea Inc. K R W A023770 K OS E 17.4 3,900.00 -9.3% 0.0% -22.3% -36.8% -33.8% -55.2%
High 60.0% 100.0% 107.1% 500.0% 432.4% -0.4%
Low -86.7% -99.2% -99.2% -98.6% -99.6% -99.8%
Average 780.0 -4.9% -7.9% -5.7% 14.1% 35.8% -45.2%Median -3.3% -5.3% -12.2% 0.7% 6.7% -40.8%
Figure 19. Price Performance Source. Capital IQ
Page 17
Comparable Company Analys is > Web 2.0Valuation Multiples
Company Name Sector Country
Primary
E xchange Ticker
USD Market
Cap ($m)
TEV/LTM
Revenue
TE V/ NTM
R evenue
TEV/LTM
EB ITDA
TEV/NTM
EB ITDA P/LTM E PS P/NTM E PS P/TangBV
Accelerize New Media , Inc. Direct Marketing United S ta tes OTCB B AC LZ 15.4 4.6x - - - - - -
Actoz S oft C o. , Ltd. G aming S outh K orea KOS E A052790 105.2 0.7x - 2. 8x - 14.9x - 1.6x
AQ Interactive, Inc. G aming J apan T S E 3838 28.5 0.1x 0.1x - - - 8.4x 0.5x
As socia ted Media Holdings Inc. Mobile United S ta tes OTCP K AS MH 0.4 12.6x - - - - - -
B igs tring Corp. Ins tant Messaging United S ta tes OTCB B B S GC 2.0 49.2x - - - - - -
B etawave Corpora tion Media United S ta tes OTCB B BWAV 0.9 - - - - - - 0.2x
B eyond Commerce, Inc. S ocial Networking United S ta tes OTCB B B YOC 4.2 0.9x - - - - - -
B right T hings plc S ocial Networking United K ingdom AIM AIM:B GT 5.9 - - - - - - -
B roadWebAs ia Inc. S ocial Networking United S ta tes OTCP K BWBA 2.5 - - - - - - -
CDC Corp. G aming Hong K ong NasdaqGS CHIN.A 249.1 0.7x 0.7x 9. 7x 6.8x - - 99.6x
Changyou.com Limited G aming C hina NasdaqGS C YOU 1,669.3 5.3x 4.4x 8. 6x 7.1x 11.3x 9.7x 8.7x
China G ateway Corpora tion Mobile United S ta tes OTCP K CGW Y 0.0 0.0x - - - - - -
C hines e G amer Interna tional G aming T a iwan G T S M GT S M:3083 1,104.8 16.8x 15.7x 29.8x 25.6x 39.2x 23.4x 19.0x
C L IC K E R Inc. Direct Marketing United S ta tes OTCB B C LK Z 0.7 0.3x - - - - - -
C ornerWorld C orporation C ontent United S ta tes OTCB B CW R L 5.7 2.4x - - - - - -
C yberplex Inc. Advertis ing C anada T S X T S X:CX 83.6 0.7x 0.6x 6. 6x 5.1x 7.5x 8.3x 3.3x
DADA S pA S ocial Networking Italy CM CM:DA 167.7 0.9x 0.8x 6. 8x 5.8x - 15.9x -
DXN Holdings B hd S ocial Networking Malays ia K LS E DXN 41.6 0.7x - 5. 1x - 6.9x - 0.9x
Dibz Interna tiona l, Inc. S NS Apps United S ta tes OTCP K DIB Z 0.0 - - - - - - -
DigitalP os t Interactive, Inc. C ontent United S ta tes OTCB B DGLP 3.9 5.9x - - - - - -
DigitalT own, Inc. S ocial Networking United S ta tes OTCB B DGTW 27.6 - - - - - - -
Dolphin Digital Media , Inc. S ocial Networking United S ta tes OTCB B DPDM 21.5 38.6x 1.4x - - - 1.6x -
E olith C o. L td. G aming S outh K orea KOS E A041060 32.2 2.2x - - - - - 2.9x
E xtens ions , Inc. C ontent United S ta tes OTCP K E XT I 17.8 - - - - - - -
F luid Mus ic C anada, Inc. Media United S ta tes T S X T S X:FMN 86.4 15.3x 14.6x - - - - 8.1x
F rogs ter Interactive P ictures AG G aming G ermany XT R A F R G 71.5 7.3x - - - - - 8.8x
G amania Digital E ntertainment Co. , Ltd. G aming T a iwan G T S M 6180 209.8 1.3x - 7. 4x - 18.0x - 2.7x
G ameOn Co Ltd. G aming J apan T S E 3812 92.1 0.2x - 0. 9x - 9.2x - 1.1x
G eoS entric Oyj Mobile F inland HLS E GE O1V 65.8 12.1x - - - - - 54.3x
G iant Interactive G roup, Inc. G aming C hina NYS E GA 1,644.0 - - - - 2.0x 15.2x 0.3x
G igaMedia Ltd. G aming T a iwan NasdaqGS G IGM 217.0 0.8x 0.7x - 3.7x 8.6x 8.0x 1.8x
G ravity C o. , Ltd G aming S outh K orea NasdaqGM GR V Y 43.6 - - - - 0.0x - 0.0x
G ree, Inc. S ocial Networking J apan T S E T S E : 3632 2,548.3 15.6x 6.8x 25.9x 12.4x 54.0x 24.6x 25.0x
G ungHo Online E nterta inment, Inc. Media J apan OS E 3765 271.0 2.0x - 8. 9x - 58.6x - 20.2x
HanbitS oft, Inc. G aming S outh K orea KOS E A047080 62.8 0.8x - 34.8x - 11.2x - 1.8x
IAC /InterActiveCorp. Media United S ta tes NasdaqGS IAC I 2,510.1 0.6x 0.6x 10.5x 4.8x 10.7x 32.8x 1.2x
IAS E nergy, Inc. V ideo C anada OTCB B IAS A.E 8.5 - - - - - - -
is eemedia Inc. C ontent C anada T S XV IE E 6.8 3.7x - - - - - 5.6x
J umbuck E ntertainment L imited S ocial Networking Aus tra lia AS X AS X:J MB 14.5 0.5x 0.5x 1. 1x 1.2x 4.1x 3.0x 1.3x
K AB Dis tribution Inc. C ontent C anada T S X T S X:K AB 0.6 - - - - - - 0.0x
K ingsoft C o. Ltd. G aming C hina S E HK 3888 1,058.1 7.6x 6.2x 17.2x 11.9x 21.1x 15.9x 5.9x
Lingo Media C orpora tion Learning C anada T S XV T S XV : LM 10.9 8.3x - - - - - 19.5x
LiveW orld Inc. S ocial Networking United S ta tes OTCP K LVWD 1.2 0.0x - - - - - 0.5x
LookS mart, L td. Direct Marketing United S ta tes NasdaqGM LOOK 22.1 - - - - - - 0.8x
Magnitude Information S ys tems Inc. S ocial Networking United S ta tes OTCB B MAGY 5.4 - - - - - - -
Mixi, Inc. S ocial Networking J apan T S E 2121 1,345.8 9.0x 7.7x 26.5x 24.5x 65.4x 57.0x 8.9x
Modern T imes G roup Mtg AB Media S weden OM MTG B 2,906.3 1.7x 1.7x 12.2x 11.9x 15.6x 15.1x -
MOKO .mobi L imited S ocial Networking Aus tra lia AS X MK B 8.3 10.6x - - - - - 8.5x
Myriad G roup AG Mobile S witzerland S W X MYR N 209.7 3.3x - - - - - -
NE OW IZ G ames Corporation G aming S outh K orea KOS E A095660 681.9 3.2x - 12.1x - 35.5x - 17.9x
NetDragon W ebS oft, Inc. G aming C hina S E HK 777 326.7 2.0x 1.4x 7. 0x 3.8x 13.3x 10.6x 1.7x
Netease.com Inc. G aming C hina NasdaqGS NT E S 4,878.1 - - - - 2.8x 15.1x 0.8x
NeuLion Incorporated V ideo C anada T S X T S X:NLN 71.1 2.8x - - - - - 5.4x
NeXplore Corporation C ontent United S ta tes OTCP K NXPC 41.8 27.0x - - - - - -
Ngi G roup Inc. Media J apan T S E 2497 38.2 - - - - - - 0.7x
Northgate T echnologies L imited Direct Marketing India B S E 590057 21.3 0.3x - - - - 1.2x -
Open T ext C orp. C ollabora tion C anada NasdaqGS OT E X 2,082.2 2.6x 2.3x 10.2x 8.6x 45.4x 13.1x -
Openwave S ys tems Inc. Mobile United S ta tes NasdaqGS OPWV 172.0 0.4x 0.4x 11.9x 4.0x - 51.5x 2.4x
P erfect W orld C o. , Ltd. G aming C hina NasdaqGS PWR D 2,178.9 0.7x 3.4x 1. 2x 6.4x 3.0x 13.7x 1.4x
P NI Digital Media Inc. Digita l Imaging C anada T S XV T S XV :P N 56.6 2.6x 2.2x 23.6x 7.1x - 14.4x 19.8x
Quepasa C orp. S ocial Networking United S ta tes OTCB B QP S A 15.3 - - - - - - -
OAO R B C Information S ys tems Media R uss ia R T S R B C I 222.0 0.0x 1.0x 0. 4x 5.7x - 6.5x -
S handa Interactive E nterta inment Ltd. G aming C hina NasdaqGS S NDA 3,039.9 - - - - 2.2x 12.4x 0.8x
S hutterfly, Inc. Digita l Imaging United S ta tes NasdaqGS S FLY 365.3 1.1x 1.1x 9. 0x 5.6x - - 2.2x
S K Communications Co. , Ltd. S earch S outh K orea KOS E A066270 247.4 1.3x - 19.7x - - - -
S NAP Interactive, Inc. Dating United S ta tes OTCB B S T V I 2.3 0.2x - 0. 7x - 4.0x - 1.3x
S NM G lobal Holdings Media United S ta tes OTCP K S NMN 0.0 1.1x - - - - - -
S ocial Media V entures Inc. S ocial Networking United S ta tes OTCP K S MV I 0.0 4.5x - - - - - -
S ocialwise, Inc. S ocial Networking United S ta tes OTCB B S CLW 22.1 - - - - - - -
S ohu.com Inc. G aming C hina NasdaqGS S OHU 2,072.7 3.1x 2.7x 7. 0x 6.1x 12.3x 14.5x 3.8x
S park Networks , Inc. S ocial Networking United S ta tes AME X LOV 59.3 1.1x - 5. 3x - 16.2x - 60.6x
S pectrumDNA, Inc. Media United S ta tes OTCB B S P XA 7.3 - - - - - - 72.8x
T encent Holdings Ltd. P orta l C hina S E HK 700 33,542.7 26.6x 20.2x - 48.3x 68.5x 56.5x 30.5x
T he P a rent C ompany Media United S ta tes OTCP K K IDS .Q 0.2 0.2x 0.2x - 12.8x - - -
T he9 L imited G aming C hina NasdaqGS NCTY 196.2 - - - - 2.2x - 0.1x
T heS treet.com, Inc. Media United S ta tes NasdaqGM TS CM 73.8 0.1x 0.2x 4. 7x - - - 1.0x
T ree.C om, Inc. P orta l United S ta tes NasdaqGM T R E E 87.7 0.4x 0.4x - 8.4x - 51.8x 1.1x
Uniserve C ommunications Corp. S ocial Networking C anada T S XV T S XV :US S 1.1 0.2x - - - - - -
United Online Inc. Media United S ta tes NasdaqGS UNTD 659.0 1.0x 1.0x 4. 5x 3.9x - 6.0x -
UOMO Media , Inc Media C anada OTCB B UOMO 6.6 8.9x - - - - - -
V a lueC lick Inc. Media United S ta tes NasdaqGS VCLK 802.7 1.2x - 4. 9x 4.9x - - 4.2x
VO IS , Inc. S ocial Networking United S ta tes OTCB B VOIS 3.3 - - - - - - 21.1x
W ebzen Inc. G aming S outh K orea NasdaqGM WZE N 35.9 - - - - 0.0x - 0.0x
W izzard S oftware Corporation P odcas ting United S ta tes AME X WZE 21.7 4.3x - - - - - -
W orlds .com Inc. C ontent United S ta tes OTCB B WDDD 5.2 - - - - 20.0x - -
W ynds torm C orporation C ontent United S ta tes OTCP K W YND 1.8 - - - - - - -
X ING AG S ocial Networking G ermany XT R A O1B C 269.3 3.7x 2.8x 12.8x 8.0x 27.7x 16.6x 8.6x
YD Online Corp. G aming S outh K orea KOS E A052770 85.6 1.6x 1.2x 7. 6x 4.2x 9.1x - 2.8x
Y nk K orea Inc. G aming S outh K orea KOS E A023770 17.4 1.4x - 13.2x - - - 0.8x
High 33,542.7 49.2x 20.2x 34.8x 48.3x 68.5x 57.0x 99.6x
Low 0.0 0.0x 0.1x 0. 4x 1.2x 0.0x 1.2x 0.0x
Average 780.0 5.3x 3.4x 10.6x 9.6x 18.8x 18.7x 10.6xMedian 41.8 1.7x 1.3x 8. 6x 6.4x 11.3x 14.5x 2.5x
Figure 20. Valuation Comparison Source. Capital IQ
Page 18
Comparable Company Analys is > Web 2.0Summary by Country
Company Name USD Market Cap ($m) Avg USD Market Cap ($m) USD LTM Total Rev ($m) USD LTM Total E B ITDA ($m) E B ITDA %
United S tates 38 China 49,633.4 C hina 4,963.3 China 4,152.4 China 2,070.2 C hina 48.8%
Canada 10 United S ta tes 5,811.3 S weden 2,974.2 United S tates 3,887.3 S weden 304.6 Aus tralia 42.8%
China 10 J apan 3,871.5 J apan 645.3 S weden 1,982.6 United S tates 290.0 T aiwan 37.1%
S outh K orea 8 S weden 2,974.2 T aiwan 577.9 Canada 1,015.0 Canada 200.0 J apan 24.2%
J apan 6 C anada 2,488.2 Hong K ong 294.6 S outh K orea 707.3 J apan 186.0 S weden 15.4%
Ta iwan 3 Ta iwan 1,733.6 C anada 248.8 J apan 634.4 S outh K orea 121.9 Malays ia 14.4%
Aus tralia 2 S outh K orea 1,527.4 S outh K orea 190.9 T a iwan 385.8 T a iwan 59.8 Italy 13.1%
Germany 2 Germany 317.0 Ita ly 165.4 Hong K ong 361.6 Ita ly 31.9 R us s ia 13.1%
S witzerland 1 Hong K ong 294.6 R us s ia 160.9 Ita ly 242.6 Hong K ong 25.1 S outh K orea 12.7%
Hong K ong 1 Ita ly 165.4 Germany 158.5 R us s ia 156.2 R us s ia 20.4 Hong K ong 6.9%
F inland 1 R us s ia 160.9 United S ta tes 152.9 India 82.8 Germany 12.5 S witzerland 1.9%
Ita ly 1 S witzerland 92.0 S witzerland 92.0 Malays ia 77.1 Malays ia 11.1 C anada -8.5%
United K ingdom 1 F inland 65.9 F inland 65.9 Germany 68.7 Aus tralia 4.5 G ermany -9.1%
India 1 Malays ia 39.8 Malays ia 39.8 S witzerland 40.0 S witzerland 0.8 United S ta tes -21.9%
S weden 1 India 31.0 India 31.0 Aus tralia 17.8 Norway -1.1 India -50.0%
R us s ia 1 Aus tralia 22.1 Aus tralia 11.0 F inland 5.5 United K ingdom -2.7 Norway -50.6%
Malays ia 1 United K ingdom 6.0 United K ingdom 6.0 Norway 2.3 F inland -17.5 United K ingdom NA
Norway 1 Norway 0.1 Norway 0.1 United K ingdom 0.0 India -41.4 F inland NA
Grand Total 89 Grand Total 69,234.6 Grand Total 777.9 Grand Total 13,819.5 Grand Total 3,276.1 Grand Total 5.1%
Figure 21. Comparison by Country Source. Capital IQ
Comparable Company Analys is > Web 2.0Summary by E xchange
Company Name USD Market Cap ($m) Avg USD Market Cap ($m) USD LTM Total Rev ($m) USD LTM Total E B ITDA ($m) E B ITDA %
OTCB B 18 S E HK 31,520.4 S E HK 10,506.8 OM 1,982.6 NasdaqGS 1,796.0 NY S E 62.5%
NasdaqGS 14 NasdaqGS 24,385.7 OM 2,974.2 S E HK 540.0 S E HK 767.5 AS X 42.8%
OTCP K 11 TS E 3,569.2 NY S E 1,750.4 NasdaqGS 498.6 OM 304.6 S E HK 40.6%
KOS E 6 OM 2,974.2 NasdaqGS 1,741.8 CM 242.6 T S E 160.2 G TS M 37.1%
TS E 5 NY S E 1,750.4 GT S M 715.0 NY S E 198.5 NY S E 124.1 Nas daqG S 30.4%
NasdaqGM 5 KOS E 1,437.0 T S E 713.8 R T S 156.2 KOS E 103.2 T S E 24.6%
TS X 4 GT S M 1,430.0 OS E 302.3 OS E 116.1 GT S M 59.8 OS E 22.2%
TS XV 4 XTR A 317.0 KOS E 239.5 KOS E 106.0 CM 31.9 OM 15.4%
S E HK 3 OS E 302.3 CM 165.4 T S E 103.7 OS E 25.8 K LS E 14.4%
AME X 2 NasdaqGM 279.7 R TS 160.9 GT S M 101.1 R T S 20.4 CM 13.1%
AS X 2 TS X 243.6 XTR A 158.5 B S E 82.8 NasdaqGM 15.6 R TS 13.1%
XTR A 2 OTCB B 230.9 S W X 92.0 NasdaqGM 82.4 XTR A 12.5 K OS E 9.6%
GT S M 2 CM 165.4 HLS E 65.9 K LS E 77.1 K LS E 11.1 Nas daqGM 7.7%
SWX 1 R TS 160.9 T S X 60.9 T S X 46.4 AME X 6.2 T S XV 5.6%
HLS E 1 S WX 92.0 NasdaqGM 55.9 S W X 40.0 AS X 4.5 S WX 1.9%
CM 1 TS XV 76.6 K LS E 39.8 XTR A 34.3 S W X 0.8 XT R A -9.1%
B S E 1 AME X 68.5 AME X 34.2 AME X 27.9 OTCNO -1.1 AME X -31.8%
NY S E 1 HLS E 65.9 B S E 31.0 OTCP K 16.5 AIM -2.7 T S X -34.7%
OS E 1 OTCP K 65.8 T S XV 19.1 T S XV 12.0 T S X -4.3 OTCB B -38.8%
AIM 1 K LS E 39.8 OTCB B 12.8 AS X 8.9 T S XV -4.6 OTCP K -41.5%
OM 1 B S E 31.0 AS X 11.0 HLS E 5.5 HLS E -17.5 B S E -50.0%
R T S 1 AS X 22.1 AIM 6.0 OTCB B 2.3 OTCP K -34.1 OTCNO -50.6%
K LS E 1 AIM 6.0 OTCP K 6.0 OTCNO 2.3 B S E -41.4 AIM NA
OTCNO 1 OTCNO 0.1 OTCNO 0.1 AIM 0.0 OTCB B -62.4 HLS E NA
Grand Total 89 Grand Total 69,234.6 Grand Total 777.9 Grand Total 13,819.5 Grand Total 3,276.1 Grand Total 5.1%
Figure 22. Comparison by Exchange Source. Capital IQ
Page 19
Financing - Las t Three Months (US$ m)Fin. Amount (Million) Type of financ ing
Month Company Name Country Angel/S eed Debt financ ing S eries A S eries B Series C S eries D S eries E Grand Total
Aug-09 Turbine US A 50.0 50. 0
Smith & Tinker US A 29.0 29. 0
Mint US A 14.1 14. 1
Zoove US A 13.2 13. 2
R ichRelevance US A 12.5 12. 5
Traffiq US A 10.0 10. 0
MediaMath US A 10.0 10. 0
B ill.com US A 8.5 8.5
Edo Interactive US A 8.5 8.5
InnoCentive US A 7.3 7.3
OneR iot US A 7.0 7.0
Balihoo US A 7.0 7.0
Boxee US A 6.0 6.0
Polyvore US A 5.6 5.6
Fanbas e US A 5.0 5.0
MOG US A 5.0 5.0
OurS tage US A 3.0 3.0
Z2Live US A 3.0 3.0
KODA US A 3.0 3.0
S coreloop Germany 2.8 2.8
Roblox US A 2.2 2.2
Tremor Media US A 2.0 2.0
iS ocket US A 2.0 2.0
R ights Flow US A 1.5 1.5
Plis ta Germany 1.4 1.4
Ches sCube S outh Africa 1. 3 1.3
Links ify US A 0.5 0.5
iS yndica US A 0.4 0.4
DailyBooth US A 0.0 0.0
Aug-09 Total 25.8 11.5 77.6 43.6 63.2 221.6
S ep-09 Twitter US A 100.0 100. 0
Ens equence US A 20.0 20. 0
Livebookings UK 16.0 16. 0
Mzinga US A 10.0 10. 0
InXpo US A 9.0 9.0
J obvite US A 8.3 8.3
R iot Games US A 8.0 8.0
NextB io US A 8.0 8.0
Imeem US A 6.0 6.0
Vuc lip US A 6.0 6.0
YuMe US A 5.0 5.0
Booyah US A 5.0 5.0
NeoEdge US A 4.0 4.0
Alliance Health Networks US A 3.3 3.3
Unis fair US A 3.1 3.1
Conduit Labs US A 3.0 3.0
Mocapay US A 3.0 3.0
Fwix US A 2.8 2.8
Vantrix Canada 2.6 2.6
MashLogic US A 2.5 2.5
Greys tripe US A 2.0 2.0
Loomia US A 1.5 1.5
FourSquare US A 1.4 1.4
EduFire US A 1.3 1.3
Fluther US A 0.6 0.6
TransGaming Inc. Canada 0. 5 0.5
OnL ive US A
S ep-09 Total 0.6 2.0 16.9 52.3 27.9 23.1 110.0 232.8
Oct-09 DailyMotion F rance 25.3 25. 3
PopCap Games US A 22.5 22. 5
Engine Yard US A 19.0 19. 0
HubSpot US A 16.0 16. 0
J ive S oftware US A 12.0 12. 0
Spigit US A 10.0 10. 0
Ooyala US A 10.0 10. 0
S canS cout US A 8.5 8.5
Box.net US A 7.1 7.1
Reality Mobile US A 6.5 6.5
Watercooler US A 5.5 5.5
Vdopia US A 4.7 4.7
Sometrics US A 4.0 4.0
Amie S treet US A 3.9 3.9
ViVu US A 3.0 3.0
Fizzback UK 2.6 2.6
Technorati US A 2.0 2.0
Onehub US A 1.3 1.3
DataS ync US A 1.2 1.2
DailyBooth US A 1.0 1.0
Hot Potato US A 1.0 1.0
Linkedex UK 1.0 1.0
S tatusNet C anada 0. 9 0.9
IngBoo US A 0.8 0.8
Chango C anada 0.7 0.7
Lis tia US A 0.4 0.4
Oct-09 Total 4.0 40.9 56.5 67.4 2.0 170.8
Nov-09 CubeTree US A 8.0 8.0
S coopler US A 0.5 0.5
Nov-09 Total 0.5 8.0 8.5
Grand Total 31.0 2.0 69.3 194.3 138.8 88.3 110.0 633.7
Figure 23. Financing, Last Three Months Source. Company reports
Page 20
Company Descriptions - Current Month Capital Market ActivityCompany HQ Webs ite Des cription
Amie S treet United S ta tes www.amies treet. com Amie S treet, Inc. , a W eb based socia l mus ic s tore, enables members to dis cover, download, and share mus ic. T he company was founded
in 2006 and is based in Long Is land C ity, New Y ork.
Aurora Feint United S ta tes www.aurorafeint.com Aurora F eint, Inc. offers gaming platform for iphone. T he company is based in B urlingame, C alifornia .
Aviary United S ta tes www.avia ry. com Aviary is a collaborative creative suite for artis ts of a ll genres . Ava ilable both on and offline, via Adobe’s F lex and Air technologies
respectively, Aviary enables artis ts to create on the fly with an inventory of tools for every medium. F rom image editing to typography to
mus ic to 3D to video, a rtis ts can crea te and collaborate us ing the company's free and light s oftware.
Box.net United S ta tes www.box.net B ox.net, Inc. provides online file s torage, s haring, and collaboration s ervices to regis tered us ers in the United S tates and internationally. It
offers file s haring, mobile acces s , and document editing s ervices to bus ines ses , s chools , and other organiza tions . B ox.net, Inc. was founded
in 2005 and is based in P alo Alto, C a lifornia .
Chango Canada www.chango.com Chango Inc. provides online advertis ing solution. T he company provides keyword targeted P P C campaigns and S ea rch E engine Marketing
(S E M) campaigns . Chango Inc. was founded in 2008 and is based in T oronto, C anada.
Daily Booth United S ta tes www.dailybooth.com DailyB ooth lets users follow their friends and update them in real-time through the use of pictures and s ta tus updates .
DailyMotion F rance www.dailymotion.com Dailymotion S AR L provides on-line video content in F rance and E urope. It operates a video enterta inment W ebs ite tha t provides video
s haring s ervices . T he company a ls o enables sha ring of officia l and profes s iona l contents . Dailymotion S AR L was founded in 2005 and is
based in P aris , F rance.
DataS ync United S ta tes www.datas yncsuite. com DataS ync Corporation develops open source consolidation software. T he company develops DataS ync S uite, a s oftware pla tform that
integrates core applications into an open source software-as -a-s ervice web porta l. DataS ync Corporation was founded in 2005 and is based
in S ioux F a lls , S outh Dakota .
E cas t Network United S ta tes www.ecas tinc.com E cas t, Inc. operates a broadband touch s creen media network in the United S tates . The company’s network delivers digita l mus ic, games ,
enterta inment, information, and advertis ing to bars and nightclubs . Its platform also delivers on-demand content, including videos and
s urveys ; s upports third-party applica tions ; and a llows integration of W eb s ervices , s uch as mobile, e-commerce, and s ocia l media , including
photo sharing. T he company was founded in 1999 and is based in S an F rancis co, C alifornia .
E ngine Yard United S ta tes www.engineyard.com E ngine Y a rd, Inc. provides managed hos ting and deployment solutions for R uby and R ails applications . T he company offers a clus ter
computing platform, deployment support, and data center s ervices . It helps its clients in building s ites and applica tions on-demand. E ngine
Y ard, Inc. was founded in 2006 and is based in S an F rancis co, C alifornia with additiona l locations in the United S tates , C anada, E urope,
Is rael, the P hilippines , Aus tra lia , and New Zealand.
FeedRoom United S ta tes www. feedroom.com The FeedR oom, Inc. provides W eb video solutions and technology for corporations , media/publis hing organizations , and government
agencies . It offers broadband video dis tribution for W eb, s ea rch engines , and podcas ting; broadband video encoding, management, and
delivery; performance reporting; broadband video application des ign and development; media advertis ing s ervices ; s ubs cription and
regis tration tools ; email video a lert delivery and tracking; and original content development and production. T he company was founded in
1999 and is based in New Y ork, New Y ork . As of S eptember 30, 2009, T he F eedR oom, Inc. opera tes as a s ubs idiary of K IT digita l, Inc.
Fizzback UK www2. fizzback.com The F izzback G roup L imited provides an on-demand solution that drives cus tomer engagement at the point-of-experience. Its s olution helps
companies to lis ten, respond, and act in real-time to their cus tomers ' comments . T he F izzback G roup was formerly known as Ins tant Market
Intelligence L imited and changed its name to T he F izzback G roup L imited in J anuary 2007. T he company was founded in 2004 and is based
in London, the United K ingdom.
Godengo United S ta tes www.godengo.com Godengo, Inc. des igns online publis hing and advertis ing platform for magazine publis hers . T he company provides technology to build,
manage, and dis tribute media content online. Godengo, Inc. was incorpora ted in 2004 and is based in E meryville, C alifornia .
Figure 24a. Company Descriptions Source. Company reports, Capital IQ, Crunchbase
Page 21
Company Descriptions - Current Month Capital Market ActivityCompany HQ Webs ite Des cription
Hot Potato United S ta tes www,hotpotato.com Hot P otato offers internet based s ocia l networking s ervices . T he company was founded in 2009 and is based in B rooklyn, New Y ork.
HubSpot United S ta tes www.hubspot. com HubS pot, Inc. offers B 2B inbound marketing software. Its products include HubS pot Owner, which generates qualified leads and convert
leads into s a les ; and HubS pot Marketer that offers inbound marketing tools . T he company a ls o provides s earch engine optimization,
bus ines s blogging, competitor analys is , clos ed-loop marketing analytics , W ebs ite editor, lead tracking and intelligence, lead grader, landing
page wizard, marketing intelligence, s ocia l media , and inbound marketing solutions . HubS pot, Inc. was founded in 2006 and is based in
C ambridge, Mas s achusetts .Ingboo United S ta tes www. ingboo.com Ingboo Inc. operates as an online marketplace for information updates to consumers . It offers an Internet retrieval utility that a llows to track
information, s uch as W ebs ites , job and apartment lis tings , eB ay auctions , C ra ig's lis t pos ts , news , weather, traffic, s ports s cores , R S S
feeds , twitter updates , celebrity gos s ips , and Y ouTube videos . T he company a ls o drives traffic to W eb publis hers , bloggers , and reta ilers . It
enables to acces s through smartphones and e-mails . The company was founded in 2007 and is bas ed in S unnyvale, C alifornia .
J ive Software United S ta tes www. jivesoftware.com J ive S oftware, Inc. develops , markets , and s ells s ocia l productivity and community s oftware solutions for enterpris es in the United S tates
and interna tionally. Its products include C learspace, an enterpris e collaboration software, which applies a people-centric approach to
facilitate work force networking and collaboration applications ; C lea rspace C ommunity, an enterpris e-clas s community s oftware that is us ed
to build la rge online communities , a s well as to engage cus tomers , and build brands and marketing initiatives ; and C lea rs tep, an online
community s olution for s ocia l and enterpris e 2.0 profes s ionals . T he company a ls o offers s trategic and technical cons ulting s ervices . T he
company was founded in 2001 and is based in P ortland, Oregon.
L inkedex UK NA B ased in London and S an F rancis co, L inkedex a ims to help companies analys e the proces s by which s earch engines deliver their results
and achieve higher rankings in na tura l (non-pa id-for) s earch for their brands and s ervices .
L is tia United S ta tes www. lis tia . com L is tia , which launched in Augus t 2009, is eB ay for free s tuff. Users get a certa in number of credits which they bid for the item, s o whoever
wins the auction is the person who wanted it the mos t. Users get credits in three ways : every user gets a certa in number automatically, and
you can get more by auctioning items , by referring friends , and by buying them. T he company is based in S unnyvale, C alifornia .
Onehub United S ta tes onehub.com Onehub Inc. provides a W eb application that enables companies to build extranets for uploading, acces s ing, and sharing files and folders
with partners , cus tomers , coworkers , and s uppliers . The company s erves marketing, advertis ing, graphic des ign, and consulting s ervices
indus tries in the United S tates and internationally. Onehub Inc. was founded in 2007 and is based in B ellevue, W ashington.
Ooyala United S ta tes www.ooya la . com Ooya la is a video technology company that provides indus try-leading s olutions for managing, dis tributing and monetiz ing high-quality video
online. F ounded by former Google engineers in April 2007, Ooyala takes a novel approach at delivering video, ta rgeting ads and collecting
video analytics . S ince launching its flagship product, B acklot, in December of 2007, Ooyala has s igned up over 1000 paying cus tomers
including W arner B rothers , AOL/B ebo, National G eographic, T V G uide and the G lam network. T he company is bas ed in Mountain V iew,
C alifornia .Overtone United S ta tes www.overtone-inc.com Overtone, Inc. delivers brand monitoring and engagement to various enterpris es . It offers Open Mic software-as -a-s ervice integrated
lis tening s ys tem, which delivers actionable ins ights from cons umer comments and extracts actionable intelligence from uns tructured
cus tomer-genera ted content. T he company’s Open Mic a ls o provides real time proces s ing, multi-channel lis tening, and proven s calability.
Overtone, Inc. was formerly known as Is land Data Corporation. T he company was founded in 1995 and is based in S an F rancis co,
C alifornia . As of 01/05/2004, Overtone, Inc. is a s ubs idia ry of L iveP erson, Inc.
PopCap Games United S ta tes www.popcap.com P opC ap G ames , Inc. develops and publis hes casual games . Its games a re played on the W eb, des ktop computers , cell phones ,
smartphones , P DAs , pocket P C s , iP ods , iP hones , game consoles , and in-flight enterta inment s ys tems . T he company offers its products to
W eb porta ls , reta il s tores , mobile operators and developers , and game device manufacturers . P opCap G ames , Inc. was founded in 2000
and is bas ed in S eattle, W ashington. It has operations in Chicago, I llinois ; S an F rancis co, C a lifornia ; S hanghai, C hina ; Dublin, Ireland; and
V ancouver, B .C . , C anada .Reality Mobile United S ta tes www. realitymobile. com R eality Mobile LLC provides mobile video and data sharing technology. T he company was founded in 2003 and is based in Herndon,
V irginia .S canS cout United S ta tes www.s canscout. com S canS cout, Inc. operates as an online video advertis ing network. It s erves publis hers , advertis ers , and ad networks . T he company was
founded in 2005 and is based in B os ton, Mas s achusetts with additional offices in New Y ork and Los Angeles .
S cout Labs United S ta tes www.s coutlabs .com S cout Labs is a powerful, web-based application tha t finds s ignals in the nois e to companies build better products and s tronger cus tomer
relationships . T he company provides technology and a collaborative platform for companies and their agents to lis ten to cus tomers and
engage with them out acros s the Internet.
Sometrics United S ta tes sometrics . com S ometrics , Inc. operates as an analytics and ad platform s tartup company specia liz ing in socia l media . It offers analytics and ad managing
s olutions that focus on socia l networking platforms and applications . T he company a ls o provides s ocia l advertis ing solutions , s uch as
displays , engagements , and brand as s es sments , as well as s ocia l planners for advertis ers . In addition, it offers S ocia l Analytics that provide
analys is for s ocia l applications and W ebs ites ; S ocia l Ad Manager that helps to s erve and optimize ads to increase revenue acros s s ocia l
media properties ; and V irtual C urrency Manager, a virtual currency platform des igned to provide an interface to manage disparate offer
networks and relationships for publis hers . T he company supports F acebook, Myspace, B ebo, F riends ter, and hi5 platforms . S ometrics , Inc.
was founded in 2007 and is headquartered in Los Angeles , C alifornia .
Spigit United S ta tes www.spigit. com S pigit, Inc. des igns , develops , and dis tributes s ocia l networking software for bus ines s innovation. It provides s tra tegic and technical
consulting, webs ite des igning, project forecas ting, C R M applications , employee engagement tracking, web logs , and currency and idea
management s ervices . T he company markets its products under InnovationS pigit, IdeaS pigit, and P redictionS pigit brand names . S pigit, Inc.
is based in P leas anton, C alifornia .
S tatusNet Canada www.s tatus .net S tatusNet, Inc. provides open source micro-blogging s ervices for bus ines ses , publis hers and brands , and communities . T he company offers
s ta tus .net s oftware, an open source micro-blogging s ervice that is us ed to write short notices and s end them to friends and fans , a s well as
to create and dis tribute open content. It a ls o provides profes s ional s upport contracts and cus tomization for companies tha t use S tatusNet
s oftware on their s ervers for intranet or Internet microblogging. S tatusNet was founded in 2008 and is based in Montrea l, C anada.
Technorati United S ta tes www. technorati.com Technorati, Inc. engages in s earching, s urfacing, and organizing blogs and user-generated content on the W eb. It offers various citizen
media on the W eb, which include blogs , videos , vlogs , podcas ts , photos , and games . T he company was founded in 2002 and is based in
S an F rancis co, C alifornia .
Vdopia United S ta tes www.vdopia . com V dopia , Inc. operates as an online video advertis ing network and platform company. It enables advertis ers in India to advertis e on the online
video content. T he company's s olutions to content owners and publis hers include V DOAd network to advertis e on video content; VDOAd
platform with campaign management tools to offer online video advertis ing to advertis ers /cus tomers ; B randConnect Ad technology to deliver
C PMs ; ana lytic tools to provide s tatis tics about ads and video ana lytics for client’s videos ; and AP Is to create/publis h content. Its s olutions
to advertis ers , media planners , and marketers include publis her network , brand connect with various ad formats on various online Internet
T V channels , advertis ing, measurable branding, and reporting. V dopia , Inc. was incorporated in 2007 and is based in S an J ose, C alifornia
with s a les and development offices in S an J ose, C alifornia ; and G urgaon and Mumbai, India .
VEVO United S ta tes www.vevo.com V E VO operates as a mus ic video web s ite. T he company is based in the United S tates .
ViVu United S ta tes www.vivu. tv V iV u, Inc. develops participative event platform that enables live video pa rticipation from a personal computer, Mac, and L inux without any
proprietary downloads . It offers a s olution for event organizers to create, publis h, and manage quality video events . T he company was
incorporated in 2008 and is based in S unnyvale, C alifornia .
Watercooler United S ta tes www.watercooler-inc.com Watercooler, Inc. operates F anS ection and T V Loop online communities that enable users to acces s a network of online fan communities in
s ports and televis ion enterta inment in the United S tates and internationally. \The company was founded in 2006 and is bas ed in Mountain
V iew, C alifornia .
Yext United S ta tes www.yext. com Y ext, Inc. provides online directories . It focuses on representing va rious bus ines ses acros s the United S tates . T he company was founded in
2006 and is based in New Y ork, New Y ork .
Figure 24b. Company Descriptions – continued Source. Company reports, Capital IQ, Crunchbase
Page 22
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