SOFTWARE & SERVICES 9 FEBRUARY 2010

David Shore, CFA, MBA 416.860.6784

WEB 2.0 WEEKLY dshore@mackieresearch.com
Damian Wojcichowsky, CFA 416.860.7652

Strong Start to February on the Venture Front

Despite Weak Public Markets, Venture Financing Market Keeps Improving
Deal activity solid to start February: Total transaction value in the Web 2.0 universe for February-to-date was $90.6
million. The number of financings stands at 11, averaging $8.2 million each. In comparison, total capital raised in
January was $214.1 million, averaging $9.3 million over 23 deals. December was $450.4 million, averaging $12.9
million over 35 deals. November was $204.4 million, averaging $10.8 million (19 deals); and October was $176.1
million, averaging $5.9 million (30 deals).

Financing Activity Last Twelve Months

500.0 16.0

450.0 13.9
14.0
12.9
400.0

12.0

350.0 10.8

9.3 10.0
300.0 9.0

8.2
(US$m)

(US$m)
250.0 8.0
7.2
6.9
6.5
6.2
200.0 5.9
5.6 6.0

4.7
150.0

4.0

100.0

2.0
50.0

0.0 0.0
Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10

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

Dec-09 includes $180m Zynga investment

Deal round-up for February: The large deal highlights for the month include:

Glam Media – online media company – received a capital injection of $50 million.

BlueKai – intent-focused data exchange – raised $21 million in a Series C financing.

Ustream – online video service provider – raised $20 million.

Avvasi – solutions provider in the video processing space – raised $14 million in its second round of funding.

BrightRoll – video ad network – raised $10 million in its third round.

Yodle – online advertising service – raised $10 million in Series D financing.

This report has been created by Analysts that are employed by Mackie Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report.
w w w . m a c k i e re s e a r c h . c o m

Toronto 416.860.7600 Montreal 514.399.1500 Vancouver 604.662.1800 Calgary 403.218.6375 Regina 306.566.7550 St. Albert 780-460-6460
 Page 2

The Web 2.0 Universe

Eighty-nine public Web 2.0 companies: Our Web 2.0 universe contains 89 companies, with a combined market cap of
approximately $67 billion (Figure 1). The median market cap for the group is $54 million, with average trailing revenue
of $429 million (median $24 million). The companies are also generally profitable with a median EBITDA margin of
17.6%. On a valuation basis, the overall average is 4.1x trailing revenue (median 2.2x) and 10.3x trailing EBITDA
(median 8.7x). Twenty of the companies have more than 500 employees.

C omparable C ompany Analys is > Web 2.0

Trading C urrent US D Market US D LTM Total US D L TM Total E B ITDA TE V/L TM TE V/L TM
C ompany Name L TM as of Ticker E xchange C urrenc y HQ P rice C ap ($m) R ev ($m) E B ITDA ($m) % R evenue E B ITDA E mployees
Accelerize New Media, Inc. 9/30/2009 AC L Z OT C B B US D United S tates 0.56 16.1 4.1 (1. 5) -36. 5% 5.1x - 11
Actoz S oft C o. , L td. 9/30/2009 A052790 K OS E KR W S outh K orea 14,500 109. 1 118.2 26.2 22.2% 0.6x 2.6x NA
AQ Interactive, Inc. 9/30/2009 3838 TS E JPY J apan 86, 800.00 52.8 NM NM NM 0.4x 8.0x NA
As k net AG 9/30/2009 XT R A:A5A XT R A E UR G ermany 3.20 22.1 9,064. 3 460. 1 5.1% 0.1x - NA
As s ociated Media Holdings Inc. 6/30/2007 AS MH OT C P K US D United S tates 0.01 0. 4 0.1 (2. 3) NM 13. 2x - 3
B etawave C orporation 9/30/2009 B W AV OT C B B US D United S tates 0.12 3. 5 8.4 (14.3) NM 0.1x - 48
B eyond C ommerce, Inc. 9/30/2009 B Y OC OT C B B US D United S tates 0.03 1. 9 13. 5 (12.4) -91. 9% 1.0x - 86
B igs tring C orp. 9/30/2009 BSGC OT C B B US D United S tates 0.02 1. 4 0.1 (1. 0) NM 38. 8x - 4
B right T hings plc 9/30/2009 AIM: B G T AIM GBP United K ingdom 0.02 7. 6 0.1 (3. 6) NM - - 46
B roadW ebAs ia Inc. 9/30/2008 BWBA OT C P K US D United S tates 0.06 5. 1 0.0 (4. 6) NM - - 46
C DC C orp. 9/30/2009 C HIN. A Nas daqG S US D Hong K ong 2.22 235. 4 334.2 20.0 61.7% 5.9x 9.5x 628
C hangyou. com L imited 9/30/2009 C Y OU Nas daqG S US D C hina 33.01 1,815.6 255.3 157. 4 61.7% 5.9x 9.5x 628
C hines e G amer International 9/30/2009 G T S M: 3083 GTS M TWD T aiwan 331.50 868. 0 0.0 (0. 1) NM 11. 4x 19. 7x NA
C ornerW orld C orporation 10/31/2009 CWRL OT C B B US D United S tates 0.03 2. 9 9.2 NM NM 1.3x - 16
C yberplex Inc. 9/30/2009 T S X: C X TS X C AD C anada 0.93 60.0 2,071. 9 1,202.3 58.0% 0.4x 3.3x NA
DADA S pA 6/30/2009 C M: DA CM E UR Italy 4.98 110. 6 12. 6 NM NM 0.7x 5.3x NA
DigitalP os t Interactive, Inc. 9/30/2009 DG L P OT C B B US D United S tates 0.04 3. 7 1.2 (0. 9) -73. 8% 4.9x - 7
DigitalT own, Inc. 11/30/2009 DG T W OT C B B US D United S tates 1.25 34.3 0.0 (1. 4) NM - - 3
Dolphin Digital Media, Inc. 9/30/2009 DP DM OT C B B US D United S tates 0.33 18.8 0.3 (4. 6) 11.1% 0.7x 3.7x NA
DXN H oldings B hd 11/30/2009 DXN K LS E MY R Malays ia 0.62 40.6 33. 4 3. 7 11.1% 0.7x 3.7x NA
E n2G o International, Inc. 11/30/2009 E TGI OT C B B US D United S tates 0.90 21.4 NM (1. 9) NM - - NA
E olith C o. L td. 9/30/2009 A041060 K OS E KR W S outh K orea 585.00 38.6 0.2 0. 0 18.7% 6.5x 13. 7x NA
F luid Mus ic C anada, Inc. 9/30/2009 T S X: F MN TS X C AD United S tates 1.50 88.5 5.6 (3. 0) -54. 0% 14. 7x - NA
F rogs ter Interactive P ictures AG 6/30/2009 FR G XT R A E UR G ermany 18.00 63.2 7.6 (4. 1) -54. 0% 6.9x - NA
G amania Digital E ntertainment C o., L td. 9/30/2009 6180 GTS M TWD T aiwan 49 232. 4 0.2 (0. 1) -47. 0% 1.4x 8.3x NA
G ameOn C o Ltd. 9/30/2009 3812 TS E JPY J apan 60800.00 65.8 54. 9 9. 1 16.5% - - NA
G eoS entric Oyj 9/30/2009 G E O 1V HL S E E UR F inland 0.04 49.2 9,712. 6 2,282.4 23.5% 12. 0x - 118
G iant Interactive G roup, Inc. 9/30/2009 GA NY S E US D C hina 7.33 1,662.6 0.5 (1. 9) NM - - 1, 570
G igaMedia L td. 3/31/2009 G IG M Nas daqG S US D T aiwan 2.85 155. 4 183.6 NM NM 0.5x - 751
G ravity C o., L td 9/30/2009 GRVY Nas daqG M US D S outh K orea 2 54.5 0.2 NM NM - - 469
G ree, Inc. 12/31/2009 T S E :3632 TS E JPY J apan 4,540 2,280.4 667.7 236. 4 35.4% 7.9x 13. 4x NA
G ungHo Online E ntertainment, Inc. 9/30/2009 3765 OS E JPY J apan 211,900 271. 8 269.6 158. 6 58.8% 1.9x 8.6x NA
H anbitS oft, Inc. 9/30/2009 A047080 K OS E KR W S outh K orea 3775.00 70.7 9.2 2. 1 22.3% 1.0x - NA
IAC /InterActiveC orp. 9/30/2009 IAC I Nas daqG S US D United S tates 21.16 2,792.5 1,359. 6 82.4 42.8% 0.4x 1.0x 79
InternetArray, Inc. 12/31/2006 INAR OT C P K US D United S tates 0.00 0. 0 5.9 (4. 0) 40.2% 5.6x 13. 8x 2, 271
is eemedia Inc. 9/30/2009 IE E T S XV C AD C anada 0.20 9. 9 1.9 (4. 1) NM 5.5x - NA
J umbuck E ntertainment L imited 6/30/2009 AS X: J MB AS X AUD Aus tralia 0.31 13.1 16. 7 7. 1 42.8% 0.4x 1.0x 79
K ings oft C o. L td. 9/30/2009 3888 S E HK HK D C hina 6.01 848. 6 143.5 57.7 40.2% 5.6x 13. 8x 2, 271
L ingo Media C orporation 9/30/2009 T S XV :L M T S XV C AD C anada 1.05 12.2 1.3 (2. 3) NM 8.9x - NA
L ook S mart, L td. 9/30/2009 L O OK Nas daqG M US D United S tates 0.96 16.4 54. 0 (4. 5) -8.4% - - 90
Magnitude Information S ys tems Inc. 9/30/2009 MAG Y OT C B B US D United S tates 0.02 6. 9 0.1 (2. 3) NM - - 14
Mixi, Inc. 9/30/2009 2121 TS E JPY J apan 534,000 921. 2 139.7 46.2 33.0% 5.6x 17. 1x NA
Modern T imes G roup Mtg AB 9/30/2009 MT G B OM SEK S weden 342 3,041.5 1,883. 0 266. 1 14.1% 1.9x 13. 3x 2, 969
MO K O .mobi L imited 6/30/2009 MK B AS X AUD Aus tralia 0.10 10.3 0.7 (2. 4) NM 13. 5x - NA
Multiplied Media C orporation 9/30/2009 T S XV :MMC T S XV C AD C anada 0.23 28.4 0.2 (4. 7) NM - - NA
Myriad G roup AG 6/30/2009 MY R N SWX C HF S witzerland 4.72 195. 1 63. 0 3. 4 5.4% 3.1x - 405
NE O W IZ G ames C orporation 12/31/2008 A095660 K OS E KR W S outh K orea 28,350 511. 0 211.5 56.8 26.8% 2.4x 8.8x NA
NetDragon W ebS oft, Inc. 9/30/2009 777 S E HK HK D C hina 4.11 279. 6 91. 4 27.8 30.4% 1.4x 4.6x 2, 426
Neteas e. com Inc. 9/30/2009 NT E S Nas daqG S US D C hina 33.93 4,394.6 483.1 291. 9 60.4% - - 3, 109
NeuL ion Incorporated 9/30/2009 T S X: NL N TS X C AD C anada 0.60 65.5 24. 9 (16.1) -64. 5% 2.0x - 237
NeXplore C orporation 9/30/2009 NXP C OT C P K US D United S tates 0.56 31.2 0.5 NM NM - - NA
Ngi G roup Inc. 9/30/2009 2497 TS E JPY J apan 28,800 39.9 81. 8 3. 2 3.9% - - NA
Northgate T echnologies L imited 9/30/2009 590057 BS E INR India 21.25 15.8 47. 6 (51.1) NM 0.3x - NA
O AO R B C Information S ys tems 12/31/2007 R BCI RTS US D R us s ia 1.30 180. 3 0.0 (0. 3) NM 0.0x 0.3x NA
O riented Media G roup B erhad 9/30/2009 O ME DIA K LS E MY R Malays ia 0.14 5. 2 NM NM 25.9% 3.3x 12. 8x 3, 900
O pen T ext C orp. 9/30/2009 OTE X Nas daqG S US D C anada 46.51 2,626.1 814.5 211. 1 25.9% 3.3x 12. 8x 3, 900
O penwave S ys tems Inc. 9/30/2009 OP W V Nas daqG S US D United S tates 2.08 174. 3 190.5 6. 2 3.3% 0.4x 11. 1x 590
T he P arent C ompany 8/2/2008 K IDS .Q OT C P K US D United S tates 0.01 0. 2 112.0 (13.5) 55.0% 2.2x 12. 5x NA
P erfect W orld C o. , L td. 9/30/2009 PWRD Nas daqG S US D C hina 37.47 1,864.4 27. 9 0. 9 3.3% 0.3x 0.6x 2, 096
P NI Digital Media Inc. 9/30/2009 T S XV :P N T S XV C AD C anada 1.71 53.9 1,826. 6 1,004.7 55.0% 2.2x 12. 5x NA
Q uepas a C orp. 9/30/2009 QP S A OT C B B US D United S tates 2.86 36.4 0.2 (9. 8) NM - - 74
R eal V alue E s tates , Inc. 11/30/2009 R V LU OT C B B US D Is rael 1.25 8. 0 NM NM NM - - 3, 124
S ahara Media H oldings , Inc. 9/30/2009 S HH D OT C B B US D United S tates 0.25 7. 8 0.0 (4. 7) NM - - NA
S handa Interactive E ntertainment L td. 9/30/2009 S NDA Nas daqG S US D C hina 47.65 3,204.7 694.6 317. 3 45.7% - - 3, 124
S hutterfly, Inc. 12/31/2009 S F LY Nas daqG S US D United S tates 17.96 451. 5 246.4 35.9 14.6% 1.1x 7.5x NA
S K C ommunications C o. , L td. 12/31/2008 A066270 K OS E KR W S outh K orea 12,450 445. 8 196.6 12.8 6.5% 2.3x 34. 9x NA
S NAP Interactive, Inc. 9/30/2009 S TVI OT C B B US D United S tates 0.18 5. 9 3.4 0. 5 15.6% 1.3x 8.1x 11
S ocial Media V entures Inc. 12/31/2008 S MV I OT C P K US D United S tates 0.00 0. 0 0.1 (0. 1) NM - - NA
S ocialwis e, Inc. 9/30/2009 S C LW OT C B B US D United S tates 0.46 21.9 NM (5. 5) NM - - NA
S ohu.com Inc. 9/30/2009 S OH U Nas daqG S US D C hina 48.66 1,871.3 501.0 218. 4 43.6% 2.7x 6.1x 3, 197
S park Network s , Inc. 9/30/2009 LOV AME X US D United S tates 2.95 60.7 47. 5 10.0 21.0% 1.2x 5.7x 183
S pectrumDNA, Inc. 9/30/2009 S P XA OT C B B US D United S tates 0.15 7. 3 0.1 (2. 5) NM - - 7
T encent Holdings L td. 9/30/2009 700 S E HK HK D C hina 138 32, 334. 6 1,589. 0 811. 6 51.1% 22. 3x 43. 7x 6, 194
T he9 L imited 3/31/2009 NC T Y Nas daqG S US D C hina 6.81 171. 0 248.7 65.6 26.4% - - 1, 626
T heS treet.com, Inc. 9/30/2009 TSCM Nas daqG M US D United S tates 3.04 92.8 60. 3 (1. 1) -1.8% 0.5x - 310
T ree. C om, Inc. 9/30/2009 TRE E Nas daqG M US D United S tates 7.51 81.9 217.1 9. 7 4.5% 0.3x 5.8x 700
U nilava C orporation 12/31/2008 U NL A OT C B B US D United S tates 0.18 17.5 5.3 (1. 0) -18. 1% 3.4x - 39
U nis erve C ommunications C orp. 8/31/2009 T S XV :U S S T S XV C AD C anada 0.13 3. 0 4.9 (0. 9) -18. 1% 0.5x - NA
U nited O nline Inc. 9/30/2009 U NT D Nas daqG S US D United S tates 6.34 536. 3 996.8 212. 9 -42. 2% 3.4x - NA
U OMO Media, Inc 10/31/2009 U OMO OT C B B US D C anada 0.03 2. 8 1.0 (0. 4) -42. 2% 3.4x - NA
V alueC lick Inc. 9/30/2009 V C LK Nas daqG S US D United S tates 9.26 793. 3 545.7 130. 8 24.0% 1.2x 4.8x 1, 189
V elti P lc 6/30/2009 VEL AIM GBP United K ingdom 3.28 192. 3 79. 7 16.4 NM - - 2
V OIS , Inc. 9/30/2009 V OIS OT C B B US D United S tates 0.01 9. 9 0.0 (1. 0) NM - - 2
W ebzen Inc. 9/30/2009 K OS E : A069080 K OS E KR W S outh K orea 11,800 119. 5 23. 5 2. 6 11.0% 2.6x 23. 3x 328
W izzard S oftware C orporation 9/30/2009 W ZE AME X US D United S tates 0.37 19.8 5.2 (3. 9) -76. 4% 4.1x - 110
W orlds . com Inc. 9/30/2009 W DDD OT C B B US D United S tates 0.09 4. 8 0.1 (0. 6) NM - - 1
X ING AG 9/30/2009 O 1B C XT R A E UR G ermany 27.42 198. 0 58. 4 15.8 27.0% 2.5x 9.2x 266
Y D O nline C orp. 12/31/2007 A052770 K OS E KR W S outh K orea 5,500 70.5 58. 6 12.6 21.6% 1.3x 6.1x NA
Y nk K orea Inc. 12/31/2008 A023770 K OS E KR W S outh K orea 2,965 13.5 12. 2 1. 3 10.5% 1.0x 9.8x NA
H igh 32, 334. 6 9,712. 6 2, 282.4 61.7% 38. 8x 43. 7x 6,194
L ow 0. 0 0. 0 -51.1 -91. 9% 0.0x 0.3x 1
Average 757.1 428.8 102.5 10.5% 4.1x 10.3x 987
Median 53.9 24.2 0.5 17.6% 2.2x 8.7x 252

Figure 1. Web 2.0 Universe Summary

Source. Capital IQ
 Page 3

Capital Markets Activity (M&A and Financing)

Deal activity solid to start February: Total transaction value in the Web 2.0 universe for February-to-date was $90.6
million. The number of financings stands at 11, averaging $8.2 million each. In comparison, total capital raised in
January was $214.1 million, averaging $9.3 million over 23 deals. December was $450.4 million, averaging $12.9 million
over 35 deals. November was $204.4 million, averaging $10.8 million (19 deals); and October was $176.1 million,
averaging $5.9 million (30 deals).

Financing Activity Last Twelve Months

500.0 16.0

450.0 13.9
14.0
12.9
400.0

12.0

350.0 10.8

9.3 10.0
300.0 9.0

8.2
(US$m)

(US$m)
250.0 8.0
7.2
6.9
6.5
6.2
200.0 5.9
5.6 6.0

4.7
150.0

4.0

100.0

2.0
50.0

0.0 0.0
Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10

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

Dec-09 includes $180m Zynga investment

Figure 2. Financings, Last Twelve Months

Source. Company reports
 Page 4

Deal round-up for February: The large deal highlights for the month include:

Glam Media – online media company – received a capital injection of $50 million.

BlueKai – intent-focused data exchange – raised $21 million in a Series C financing.

Ustream – online video service provider – raised $20 million.

Avvasi – solutions provider in the video processing space – raised $14 million in its second round of funding.

BrightRoll – video ad network – raised $10 million in its third round.

Yodle – online advertising service – raised $10 million in Series D financing.

All other deals in the month were in the amount of $10 million or less. For additional details on financings, see Figures
23 and 24 (at end of note).

Financing & M/A Summary - Last Three Months

250.0

200.0

150.0

Feb-10
(US$m)

Jan-10
Dec-09

100.0

50.0

0.0
Movik Networks

Mixer Labs

PowerReviews
Avvasi

AdMarvel
Mochi Media

LiveMocha

Cognitive Match

GlobalMotion Media

Stylehive

Decision Maker Media

Vivox
Fynanaz

Sway

Stylefeeder
StudioNow

ThisNext
Living Social

XIHA
Zynga

Guvera

SMSGupShup
MobGold

Aggregate Knowledge
Gowalla

SonicMule

Eyeka

Twilio

Beezag
Shanghai Dacheng Network

Spiceworks

Flurry

Gizmoz

5 Minutes

StockTwits

OneForty

Blippy

Graphic.ly
Friendster

SocialGO
Ranker
Quantcast

AlikeList

SCVNGR
Tonchidot

Grapeshot

Echo Nest
ReachLocal

Blue Kai

BrightRoll

Gogii

Gaikai

Rocket Fuel

Jelli

Jinni
Jajah

Glam Media
Youku

Groupon

Paymo
Yelp

Lala

Yodle

kaChing

SeekingAlpha
ChaCha

Pageonce
Curse
BuyWithMe

Apisphere
Smaato

JanRain

Whiskey Media

Center'd
HootSuite
Sonico

Rekoo

Joonto

AppsFire
AppVee
Zoosk

Visible Technologies

Cloud Engines
NuConomy
Article One Partners

Appolicious
Ustream
Lithium

Genius.com

Prosper.com
Reframe It
Yammer

Drimmi
6 Waves

WePay
gWallet

TuneWiki

Figure 3. Capital Market Activity, Last Three Months

Source. Company reports
 Page 5

Gaming and Social Networks – a symbiotic relationship: In the past three months, the Social Networks space has
garnered the highest number of financings (11) while the Gaming sector leads in total value of funding. The $400 million
acquisition of Playfish skews the Gaming segment to the highest total financing (Figure 4). As many of the start-ups
receiving Gaming sector financing are specifically deployed on Social Network platforms, the two sectors have built up
somewhat of a symbiotic relationship.

Capital Market Activity by Sector - Last Three Months

400.0

350.0

300.0

250.0
(US$m)

200.0

150.0

100.0

50.0

367.5 217.5 157.8 107.4 99.5 69.0 57.8 51.2 47.3 46.6 41.8 25.0 24.5 18.0 17.7 16.0 15.3 13.2 12.5 11.0 8.0 5.3 4.0 0.6
0.0
Mobile Payment
Social Commerce

Communities
Gaming

Mobile

Media

Enterprise

Microblog

Online Learning
Music

Financial Services

Widget
SMS/Voice

Mobile Ad

Location-based

Infrastructure
Social Networks

Virtual Goods
Advertising

Video

Crowdsourced

Aggregation

Virtual World
Analytics

Vertical
Content

SNS

# companies
7 3 8 11 4 7 6 2 5 5 5 1 3 4 4 1 3 5 1 3 1 1 1 1

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

Source. Company reports
 Page 6

Capital Markets Activity (Price Performance)

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

Web 2.0 Index Price Performance

300

250

200

150

100

50

0
2/9/2009

2/23/2009

3/9/2009

3/23/2009

4/6/2009

4/20/2009

5/4/2009

5/18/2009

6/1/2009

6/15/2009

6/29/2009

7/13/2009

7/27/2009

8/10/2009

8/24/2009

9/7/2009

9/21/2009

10/5/2009

10/19/2009

11/2/2009

11/16/2009

11/30/2009

12/14/2009

12/28/2009

1/11/2010

1/25/2010
Index: Web 2.0 (Market Cap) ^COMP - Share Pricing

Figure 5. Web 2.0 Price Performance

Source. Capital IQ
 Page 7

Decliners rule: Thirty-one companies in our universe had negative stock price performances (averaging -6.3%) over the
past week (for stocks with prices greater than $1) (Figure 6), while 17 companies showed positive 1-week returns
(averaging +7.6%).

1 Week P rice P erformance

V elti Plc 63.8%
Open Tex t Corp. 16.3%
S hutterf ly , Inc. 13.5%
Y nk K orea Inc. 5.9%
IA C/InterA ctiveCorp. 4.3%
Chines e Gamer International 3.9%
G igaMedia Ltd. 3.3%
S handa Interactive Entertainment Ltd. 3.2%
Tree.Com, Inc. 3.0%
Ngi G roup Inc. 2.9%
Neteas e.com Inc. 2.8%
G ravity Co., Ltd 2.6%
S park Netw orks , Inc. 2.4%
Changy ou.com Limited 1.0%
My riad Group A G 0.4%
K ings of t Co. Ltd. 0.3%
NetDragon WebS of t, Inc. 0.2%
Y D Online Corp. 0.0%
Giant Interactive G roup, Inc. 0.0%
Modern Times G roup Mtg A B -0.8%
A Q Interactiv e, Inc. -1.4%
TheS treet.com, Inc. -1.6%
Perfect World Co., Ltd. -1.9%
United Online Inc. -2.0%
A ctoz S of t Co., Ltd. -2.0%
Tencent Holdings Ltd. -2.3%
DA DA S pA -2.4%
The9 Limited -2.6%
PNI Digital Media Inc. -2.8%
Quepas a Corp. -3.1%
S ohu.com Inc. -3.1%
V alueClick Inc. -3.1%
Lingo Media Corporation -4.5%
A s knet A G -4.6%
HanbitS of t, Inc. -5.0%
Fluid Mus ic Canada , Inc. -5.1%
XING A G -5.5%
CDC Corp. -5.5%
Openw ave S y s tems Inc. -5.9%
Frogs ter Interactiv e Pictures A G -6.2%
Gamania Digital Entertainment Co., -7.3%
NEOWIZ Games Corporation -8.4%
Webz en Inc. -9.9%
G ree, Inc. -10.6%
Eolith Co. Ltd. -12.7%
Northgate Technologies Limited -13.1%
G ameOn Co Ltd. -15.0%
S K Communications Co., Ltd. -15.6%
Mix i, Inc. -15.9%
R eal V alue Es tates , Inc. -16.7%
-0.3 -0.2 -0.1 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7

Figure 6. 1-Week Price Performance

Source. Capital IQ

Public Company Industry News (Partnerships, Financial Results, New Products)
K ey Developments
C ompany
ValueC lick Inc . (Nas daqG S : VC L K )
ValueC lick Inc . (Nas daqG S : VC L K );
W eb C lients L L C
ValueC lick Inc . (Nas daqG S : VC L K )
ValueC lick Inc . (Nas daqG S : VC L K )
S ohu.c om Inc. (Nas daqG S : S OHU)
C hangyou.c om L imited
(Nas daqG S : C YOU)
DigitalP os t Interactive, Inc.
(OTC B B : DG L P )
is eemedia Inc . (TS XV: IE E ); R elianc e
C ommunic ations L td. (B S E : 532712)
Figure 7a. Key Developments
Source. Capital IQ
Headline
V alueC lick Mulls Acquis itions
V alueC lick Inc. (Na s da qG S : V C L K ) s old W eb
C lients L L C for $45 million.
V alueC lick Inc. R eports P relimina ry R evenue
R es ults for the F ourth Q ua rter of 2009
V alueC lick Inc. R eports E a rnings R es ults for
the F ourth Q ua rter and F ull Y ea r E nded
December 31, 2009
S ohu. C om Inc. R eports E a rnings R es ults for
the F ourth Q ua rter and F ull Y ea r E nded
December 31, 2009; P rovides E arnings
G uida nce for the F irs t Q ua rter of 2010
C ha ngyou. C om L imited R eports E arnings
R es ults for the F ourth Q ua rter a nd F ull Y ear
E nded December 31, 2009; P rovides E a rnings
G uida nce for the F irs t Q ua rter of 2010
Digita lpos t Interactive, Inc. to La unch V ers ion
6. 0 of its Digita l Media P latform Including
Mobile Applications
is eemedia Inc. L aunches P us h E ma il S ervice
over S MS with R elia nce C ommunica tions
Page 8
Notes
V a lueC lick Inc reported prelimina ry revenue of $130. 2 million for the fourth quarter. T he compa ny plans to look a t
acquis ition opportunities . T he company s tated tha t it intends concentrate on its online ma rketing s ervices and technology
bus ines s es through orga nic initia tives a nd a cquis itions .
V a lueC lick Inc. (Na s da qG S : V C LK ) s old W eb C lients LL C for $45 million in promis s ory note on F ebrua ry 1, 2010. Under the
terms of the trans action, tota l cons idera tion will be pa id entirely in the form of a promis s ory note. S uch promis s ory note
s hall provide for principa l pa yments to be made bas ed on a 10 year s tra ight-line a mortization s chedule for not grea ter than
5 years and will be due and paya ble in full a t the end of s uch 5 yea r period a nd will be s ecured by s ubs ta ntia lly a ll as s ets of
the undis clos ed buyer, including, without limitation the equity s ecurities of W eb C lients .
V a lueC lick Inc. reported prelimina ry revenue res ults for the fourth qua rter of 2009. F or the period, the compa ny reported
revenue figures a t $130. 2 million.
V a lueC lick Inc. reported ea rnings res ults for the fourth qua rter a nd full yea r ended December 31, 2009. F or the qua rter, the
compa ny reported income from continuing operations of $26. 367 million compa red to los s from continuing opera tions of
$252. 461 million for the s ame period a year a go. T he compa ny reported a djus ted E B IT DA of $35. 063 million compa red to
$26. 546 million for the s a me period a yea r a go.
S ohu. com Inc. reported earnings res ults for the fourth qua rter and full yea r ended December 31, 2009. F or the qua rter, the
compa ny reported tota l revenue of $135. 8 million, in line with guida nce a nd tra ns la ting into growth of 12% year-over-year.
B efore deducting the s ha res of net income perta ining to the non-controlling interes t in C ha ngyou, non-G AAP net income for
the fourth qua rter was $50. 3 million, in line with guida nce. After deducting the s ha re of net income perta ining to the non-
controlling Interes t in C ha ngyou, on a fully diluted ba s is , non-G AAP net income wa s $35. 8 million, or $0. 92 per fully diluted
s hare, in line with guidance.
T he compa ny provided ea rnings guidance for the firs t quarter of 2010. F or the qua rter, the compa ny expects total revenues
to be between $123 million to $128 million. B efore deducting the s ha re of non-G AAP net income pertaining to the non-
controlling interes t in C ha ngyou, the compa ny es timate pro forma non-G AAP net income to be between $45. 0 [ph] million to
$47. 5 million as compared to $50. 3 million for the fourth quarter of 2009. After deducting the s ha re of non-G AAP net
income perta ining to the non-controlling interes t in C ha ngyou, the company es tima tes
non-G AAP net income for the firs t qua rter of 2010 to be between $30 million to $33 million a nd non-G AAP fully
diluted earnings per s ha re for the firs t quarter of 2010 to be between $0. 78 a nd $0. 83.
C ha ngyou. com L imited reported ea rnings res ults for the fourth quarter a nd full year ended December 31, 2009. F or the
qua rter, the compa ny reported tota l revenues of $70. 7 million, up 3% qua rter-over-qua rter a nd in line with compa ny
guidance. Non-G AAP net profit for the quarter a ls o grew 2% qua rter-over-qua rter to a record $42. 2 million, in line with
compa ny guidance. Non-G AAP operating profit increas ed 4% s equentia lly a nd 36% year-over-year to $47. 6 million. A Non-
G AAP fully diluted ea rnings per ADS wa s $0. 79, up from $0. 77 in the previous quarter a nd $0. 64 in the s a me quarter las t
yea r. O pera ting ca s h flow for the quarter wa s a net inflow of $46. 2 million.
F or the firs t qua rter of 2010, the company expects tota l revenues to be between $70 million and $73 million, non-G AAP net
income to be between $41 million a nd $42. 5 million, non-G AAP fully diluted ea rnings per ADS to be between $0. 77 a nd
$0. 80, a s s uming no new gra nts of s hare-ba s ed a wa rds , the compa ny es tima tes s hare-bas ed compens ation expens e to be
between $3. 0 million to $3. 5 million, reducing its fully diluted ea rnings per ADS under US G AAP by $0. 06 to $0. 07.
DigitalP os t Intera ctive, Inc. a nnounced pla ns to launch by the end of April 2010 vers ion 6. 0 of its a wa rd winning intera ctive
digital media platform with mobile ca pa bilities a nd other new fea tures including a s uite of digital media -editing tools , s ecurity
ma nagement controls a nd optiona l integration with popular s ocia l networking web s ites . Digita lP os t rema rked tha t vers ion
6. 0 repres ents s tate-of-the-a rt in digital media intera ctivity that is expected to enha nce value for pros pective bus ines s
pa rtners a s well a s exis ting pa rtners a nd cus tomers . B y integra ting this new, high-performa nce functiona lity, the 6. 0
pla tform will give us ers the la tes t a va ila ble technology a nd ability to perform virtua lly a ll interactive media functions without
ha ving to rely on other s oftwa re or a cces s ories . V ers ion 6. 0 us ers will be able to loa d photos a nd videos from mobile
devices directly to their W eb s ites . A new s uite of editing tools will include a n upgraded photo editor a nd a new video editor.
R eliance C ommunica tions L td. And is eemedia Inc. a nnounced the launch of a ground-brea king S MS -bas ed email s ervice
acros s R elia nce G S M and C DMA wireles s network in India, s erving more tha n 92 million s ubs cribers . T his E ma il on S MS
s ervice effectively empowers R C O M s ubs cribers to ha ve their mobile phones to beha ve like s ma rt phones a nd receive a ll
their des ktop ema il via S MS . T he E ma il-to-S MS technology is provided by C a na da's is eemedia , a lea ding provider of low
cos t wireles s ema il s ervices to operators in the country. R C O M is levera ging is eemedia's multi-pla tform ema il s olution
known a s is eema il to ena ble every mobile ha nds et in India to act a s a s mart phone and ena ble us ers to check, downloa d
and retrieve ema il mes s a ges us ing the S MS interface. is eema il s upports a ll types of ema il mes s aging s ys tems in India
through s ta ndard P O P 3 & IMAP 4. It a ls o offers a cces s to cons umer mes s aging from G mail, Hotmail, Y a hoo. co. in,
India times emails and more. R C OM is offering is eemedia 's ema il s ervice on its pre-pa id a s well as pos t-pa id pla tforms as a
s ubs cription s ervice charged a t INR 30 a nd a us a ge tariff of INR 0. 50 per S MS s ent. is eemedia receives a percenta ge of revenue fro

K ey Developments
C ompany
Open Text C orp. (Nas daqG S : OTE X)
Open Text C orp. (Nas daqG S : OTE X)
Openwave S ys tems Inc .
(Nas daqG S : OP WV)
United Online Inc. (Nas daqG S : UNTD)
Openwave S ys tems Inc .
(Nas daqG S : OP WV)
S hutterfly, Inc . (Nas daqG S : S F L Y)
Tree.C om, Inc . (Nas daqG M: TR E E )
Tencent Holdings L td. (S E HK : 700)
Figure 7b. Key Developments
Source. Capital IQ
Headline
O pen T ext Mulls Acquis itions
O pen T ext C orp. R eports C ons olidated
Una udited F ina ncia l R es ults for S econd
Q ua rter a nd S ix Months E nded December 31,
2009
K ans a i Multimedia S ervices S elects
O penwa ve S ys tems Inc. to Deliver L a rge-
S ca le, R elia ble IP v6 Mes s aging P latform
United Online Inc. Decla res a Qua rterly C as h
Dividend P aya ble on F ebrua ry 26, 2010
O penwa ve S ys tems Inc. R eports Una udited
C ons olida ted E arnings R es ults for the S econd
Q ua rter a nd S ix Months E nded December 31,
2009
S hutterfly, Inc. R eports Unaudited
C ons olida ted E arnings R es ults for the F ourth
Q ua rter a nd F ull Y ea r E nded December 31,
2009; P rovides E a rnings G uida nce for the F irs t
Q ua rter E nding Ma rch 31, 2010 a nd F ull Y ea r
E nding December 31, 2010
T ree. C om, Inc. R eports Una udited
C ons olida ted E arnings R es ults for the F ourth
Q ua rter a nd F ull Y ea r E nded December 31,
2009
T encent Holdings L td. to L aunch C hildren
O nline G a me P roduct in F irs t Ha lf of 2010
Page 9
Notes
Open T ext C orp. s a id that the compa ny ha s a healthy pipeline of acquis ition opportunities . J ohn S ha ckelton, P res ident,
C hief E xecutive O fficer a nd Director of O pen T ext s a id, “S o rea lly wha t we’re looking at is in the tra ditional document
ma nagement, etc. it might be more of a regiona l type thing where we might look to increas e our footprint in As ia P a c or in
E urope, there are certain a rea s where we need more profes s iona l s ervices , a ctua lly in C a na da als o we need more
profes s ional s ervices to help our cus tomers implement our products on a more timely bas is s o tha t would be one. ”
Open T ext C orp. reported cons olida ted una udited fina ncia l res ults for its s econd quarter a nd s ix months ended December
31, 2009. F or the quarter, the compa ny net income of $21, 201, 000 or $0. 37 per diluted s hare on tota l revenue of
$247, 790, 000 a ga ins t net income of $761, 000 or $0. 01 per diluted s hare on tota l revenue of $207, 651, 000 for the s ame
period ea rlier. Income from opera tions was $35, 913, 000 aga ins t $19, 255, 000 a gains t for the s a me period ea rlier. Income
before income ta xes wa s $31, 526, 000 a gains t $1, 444, 000 for the s a me period ea rlier. Net ca s h provided by opera ting
activities $32, 468, 000 aga ins t $39, 843, 000 for the s a me period ea rlier. Additions of ca pital a s s ets were $4, 099, 000. Non-
G AAP ba s ed "Adjus ted Net Income" wa s $50. 1 million or $0. 87 per s ha re a ga ins t $34. 0 million or $0. 64 per s ha re for the
s a me period ea rlier.
Openwave S ys tems Inc. announced that K a ns a i Multimedia S ervice C ompa ny (K MS ) has s elected a s uite of Openwave's
infra s tructure a nd ema il s olutions that include Openwave(R ) R ichMa il a nd O penwa ve(R ) E ma il Mx s upported by O penwa ve
profes s ional s ervices . T he mes s aging s olution s elected by K MS includes O penwa ve R ichMail, a n AJ AX -bas ed converged
communica tions s olution tha t offers the end us er a web-ba s ed mea ns for acces s ing the ma ilbox wherever a nd whenever it's
needed, a nd O penwa ve E ma il Mx, a n extens ible, carrier-s ca le ema il s olution tha t s ca les to s upport a ny number of
s ubs cribers with fa s t, relia ble performance. O penwave's infras tructure a nd email s olutions elimina te the need for K MS to
dea l with multiple vendors a nd multiple modules , providing a cons olidated end-to-end pla tform tha t includes a ba ck end
mes s age s tore, a nti-a bus e s olutions a nd web a cces s for end us ers . T he flexible, extens ible and highly s ca la ble IP v6
complia nt pla tforms are expected to a llow in the future the rapid deployment of cus tomized s olutions including new revenue-
generating s ervices that are ca pable of handling millions of s ubs cribers a nd la rge-ca pacity mailbox s tora ge. In addition, the O penwa
K MS with the founda tion needed to deploy dis as ter-recovery s olutions in the future.
On F ebruary 4, 2010, United O nline Inc. announced tha t its boa rd of directors has decla red a qua rterly ca s h dividend of
$0. 10 per s ha re of common s tock. T he record da te for the dividend is F ebrua ry 14, 2010, a nd the dividend is paya ble on
F ebruary 26, 2010.
Openwave S ys tems Inc. reported unaudited cons olida ted ea rnings res ults for the s econd qua rter and s ix months ended
December 31, 2009. F or the qua rter, the compa ny reported revenues were $49. 7 million compa red with $49. 8 million in the
prior quarter ended S eptember 30, 2009 a nd $48. 1 million in the December quarter in the preceding fis ca l yea r. O n a G AAP
ba s is , net income wa s $213, 000 or $0. 00 per s ha re compared with a net income of $990, 000 or $0. 01 per s ha re in the prior
qua rter and a net los s of $64. 2 million or $0. 77 per s hare in the December qua rter in the preceding year. O n a non-G AAP
ba s is , net income wa s $3. 5 million or $0. 04 per s hare compa red with a net los s of $380, 000 or $0. 00 per s ha re in the prior
qua rter and net income of $1. 4 million or $0. 02 per s hare, during the December qua rter of the prior year. O pera ting income
from continuing operations wa s $552, 000 compa red to opera ting los s from continuing opera tions of $61. 33 million for the
s a me period a yea r a go. P re-ta x income from continuing opera tions wa s $332, 000 compa red to pre- tax los s from
continuing opera tions of $3. 03 million for the s ame period a yea r a go. Net income from continuing opera tions of $213, 000 compa red
opera tions of $3. 53 million for the s a me period a yea r a go. Net cas h provided by opera ting activities wa s $6. 27
million compa red to net ca s h us ed for opera ting activities of $7. 5 million for the s a me period a year a go. P urcha s es
of property a nd equipment were $314, 000 compa red to $23, 000 for the s a me period a yea r ago.
S hutterfly, Inc. reported unaudited cons olidated ea rnings res ults for the fourth qua rter a nd full yea r ended December 31,
2009. F or the qua rter, the compa ny reported net revenues of $131. 0 million a gains t $107. 7 million for the s ame period las t
yea r. G AAP income from opera tions wa s $36. 5 million aga ins t $28. 6 million la s t yea r. G AAP income before income taxes
was $36. 6 million a gains t $28. 9 million las t year. G AAP net income was $24. 0 million or $0. 88 per diluted s hare aga ins t
G AAP net income of $14. 3 million or $0. 56 per diluted s hare la s t yea r. Net revenues increa s ed 22% year-over-year. Non-
G AAP adjus ted E B IT DA wa s $47. 9 million, compared to $38. 6 million in the fourth qua rter of 2008. Non-G AAP opera ting
income wa s $41. 6 million a ga ins t $31. 8 million la s t yea r. Non-G AAP net income wa s $27. 6 million aga ins t $20. 5 million la s t
yea r. Non-G AAP diluted net income per s ha re was $1. 01 a gains t $0. 81 la s t yea r. Non-G AAP income before income taxes
was $41. 7 million a gains t $32. 1 million las t year.
T ree. com, Inc. reported una udited cons olida ted earnings res ults for the fourth qua rter and full year ended December 31,
2009. F or the qua rter, the compa ny reported a djus ted E B IT DA was $0. 4 million, a n improvement of $3. 9 million over the
prior quarter a nd a $0. 6 million decrea s e from fourth quarter 2008. R evenues , including the impact of loa n los s s ettlements ,
were $47. 8 million, down from $50. 7 million in third qua rter 2009. T he company reported a G AAP net los s , including a ll
s ettlement, impa irment a nd res tructuring cha rges , of $1. 92 per s hare on a net los s of $21 million compa red to net los s of
$7, 006, 000 or $0. 75 ba s ic a nd diluted los s per s ha re for the s ame qua rter a yea r ago period. O pera ting los s wa s
$21, 303, 000 a gains t $6, 333, 000 for the s a me quarter a year a go period. L os s before income ta xes wa s $21, 465, 000
aga ins t $6, 365, 000 for the s a me qua rter a yea r a go period. L B IT DA wa s $18, 475, 000 aga ins t $3, 177, 000 for the s a me
qua rter a yea r a go period.
T encent Holdings Ltd. is s cheduled to la unch an online ga me product tailored for children in the firs t half of 2010, a n
executive for the company dis clos ed on F ebruary 5, 2010.
 Page 10

Valuation
Gaming companies lead market-cap charts: Eleven companies in our Web 2.0 universe top US$1 billion in market
capitalization (Figure 8). Fifty-six of the 89 companies have market caps under US$100 million, with 35 under US$25
million. Online gaming companies dominate the top of the list, led by Tencent Holdings (SEHK:700) with a market cap
of approximately US$32.3 billion.

Market C ap ($US mm)

Tencent Holdings Ltd. 32334.6
Neteas e.com Inc. 4394.6
S handa Interactive Entertainment Ltd. 3204.7
Modern Times Group Mtg A B 3041.5
IA C/InterA ctiveCorp. 2792.5
Open Tex t Corp. 2626.1
Gree, Inc. 2280.4
S ohu.com Inc. 1871.3
Perfect World Co., Ltd. 1864.4
Changy ou.com Limited 1815.6
G iant Interactive Group, Inc. 1662.6
Mix i, Inc. 921.2
Chines e Gamer International 868.0
K ings oft Co. Ltd. 848.6
V alueClick Inc. 793.3
United Online Inc. 536.3
NEOW IZ Games Corporation 511.0
S hutterfly , Inc. 451.5
S K Communications Co., Ltd. 445.8
NetDragon WebS of t, Inc. 279.6
GungHo Online Entertainment, Inc. 271.8
CDC Corp. 235.4
Gamania Digital Entertainment Co., Ltd. 232.4
XING A G 198.0
My riad G roup A G 195.1
V elti Plc 192.3
OA O R B C Information S y s tems 180.3
Openw ave S y s tems Inc. 174.3
The9 Limited 171.0
G igaMedia Ltd. 155.4
Webz en Inc. 119.5
DA DA S pA 110.6
A ctoz S oft Co., Ltd. 109.1
TheS treet.com, Inc. 92.8
Fluid Mus ic Canada, Inc. 88.5
Tree.Com, Inc. 81.9
HanbitS of t, Inc. 70.7
Y D Online Corp. 70.5
G ameOn Co Ltd. 65.8
NeuLion Incorporated 65.5
Frogs ter Interactive Pictures A G 63.2
S park Netw orks , Inc. 60.7
Cy berplex Inc. 60.0
Gravity Co., Ltd 54.5
PNI Digital Media Inc. 53.9
A Q Interactive, Inc. 52.8
G eoS entric Oy j 49.2
DXN Holdings B hd 40.6
Ngi Group Inc. 39.9
Eolith Co. Ltd. 38.6
Quepas a Corp. 36.4
DigitalTow n, Inc. 34.3
NeXplore Corporation 31.2
Multiplied Media Corporation 28.4
A s knet A G 22.1
S ocialw is e, Inc. 21.9
En2G o International, Inc. 21.4
Wiz z ard S oftw are Corporation 19.8
Dolphin Digital Media, Inc. 18.8
Unilava Corporation 17.5
LookS mart, Ltd. 16.4
A cceleriz e New Media, Inc. 16.1
Northgate Technologies Limited 15.8
Y nk K orea Inc. 13.5
J umbuck Entertainment Limited 13.1
Lingo Media Corporation 12.2
MOK O.mobi Limited 10.3
V OIS , Inc. 9.9
is eemedia Inc. 9.9
R eal V alue Es tates , Inc. 8.0
S ahara Media Holdings , Inc. 7.8
B right Things plc 7.6
S pectrumDNA , Inc. 7.3
Magnitude Information S y s tems Inc. 6.9
S NA P Interactive, Inc. 5.9
Oriented Media G roup B erhad 5.2
B roadW ebA s ia Inc. 5.1
Worlds .com Inc. 4.8
DigitalPos t Interactive, Inc. 3.7
B etaw ave Corporation 3.5
Unis erve Communications Corp. 3.0
CornerWorld Corporation 2.9
UOMO Media, Inc 2.8
B ey ond Commerce, Inc. 1.9
B igs tring Corp. 1.4
A s s ociated Media Holdings Inc. 0.4
The Parent Company 0.2
S ocial Media V entures Inc. 0.0
InternetA rray , Inc. 0.0
0 1,000 2,000 3,000 4,000 5,000 6,000

Figure 8. Market Cap Ranking

Source. Capital IQ
 0. 0
5. 0
10. 0
15. 0
20. 0
25. 0
30. 0
35. 0
40. 0
45. 0
(x)
O AO R B C Information S y s tems
B etawave C orpora tion

# Companies
revenue).

0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
As k net AG

Source. Capital IQ
Source. Capital IQ

1
HLSE T he P arent C ompany

12.0
T ree. C om, Inc.

3
SEHK

9.8
P erfect World C o., L td.

6
OTCPK

7.0
Northgate T echnologies Limited
O penwave S y s tems Inc.

2
ASX

7.0
Figure 9. TEV/Revenue Ranking
C y berplex Inc.
GTSM AQ Interactive, Inc.
OTCBB J umbuck E ntertainment Limited

6.4 6.0
U nis erve C ommunic ations C orp.

2 20 3
have multiples under 1.5x.
TSX

5.7
G iga Media Ltd.

5
TSE T heS treet. com, Inc.
Actoz S oft C o., Ltd.

5
TSXV
C DC C orp.

3
4.7 4.3 3.2
XTRA DADA S pA
DXN Holdings B hd

1
SWX
United O nline Inc.

0.0 0.1 0.10.2 0.3 0.3 0.3 0.4 0.4 0.4 0.4 0.5 0.5 0.50.6 0.6 0.7 0.70.8

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

AMEX IAC /InterActiveC orp.
NasdaqGS HanbitS oft, Inc.

3.1 2.6 2.3

B ey ond C ommerc e, Inc.

2 14 8
KOSE
Y nk K orea Inc.

2
KLSE S hutterfly , Inc.
InternetArray , Inc.

1
OSE
V alueC lick Inc.

Average TEV/LTM Revenue - By Exchange

1
OM S park Network s , Inc.
S NAP Interactive, Inc.

1
CM

2.2 2.0 1.9 1.9 0.7

Y D O nline C orp.

4
NasdaqGM C ornerWorld C orporation

1
BSE G a mania Digital E ntertainment C o. , Ltd.

0.4 0.3
0.8 1.0 1.0 1.0 1.1 1.1 1.2 1.2 1.3 1.3 1.3 1.4 1.4
NetDra gon WebS oft, Inc.

1
RTS

0.0
Modern T imes G roup Mtg AB
O riented Media G roup B erhad
G ungHo O nline E ntertainment, Inc .
NeuLion Incorporated
V elti P lc
(x)
P NI Digital Media Inc .
T E V/L T M R evenue (x)

S K C ommunic ations C o. , Ltd.

0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
1.9 1.9 1.9 2.0 2.2 2.2 2.3 2.4

NE O WIZ G ames C orporation

# Companies
XING AG

1
Finland Webz en Inc.

12.0
S ohu. com Inc.

2
Australia

7.0
My riad G roup AG
2.5 2.6 2.7 3.1 3.3

O pen T ex t C orp.
China

10
6.4
U nilava C orporation
U O MO Media, Inc
3.4 3.4

1
Hong Kong

5.9
Wiz z ard S oftware C orpora tion
United S ocial Media V entures Inc.

35
4.8
States Digita lP os t Interactiv e, Inc.
4.1 4.6 4.9

Ac celeriz e New Media, Inc.

3
Taiwan
is eemedia Inc.

6
Japan K ings oft C o. L td.

4.4 4.0
Mix i, Inc.
5.1 5.5 5.6 5.6

9
Canada

3.3
C hangy ou. com Limited
E olith C o. Ltd.
5.9 6.5

3
Germany

3.2
6.9

F rogs ter Interac tive P ictures AG

G ree, Inc.
7.9

1
Switzerland Lingo Media C orporation
8.9

South C hines e G amer International

9
Korea G eoS entric O y j
11.412.0

As s oc iated Media Holdings Inc.

2
Malaysia

3.1 2.2 2.0

MO K O . mobi Limited
13.213.5

Average TEV/LTM Revenue - By Country

F luid Mus ic C anada, Inc.
14.7

1
Sweden

1.9
T encent Holdings Ltd.
22.3

B right T hings plc

1
Italy
34.9

B igs tring C orp.

38.8

1
India

0.7 0.3
Page 11

TEV/Revenue (LTM) by country/exchange: We have also calculated multiples based on where the companies are listed
week) (Figure 9). Two companies trade above 25x revenue – Bright Things plc (AIM:BGT) at 34.9x and Bigstring Corp.

companies (35), trading at an average of 4.8x revenue (Figure 11). Nine of the companies are Canadian (average 3.3x
number of companies (20), trading at an average multiple of 6.0x. On a geographic basis, the United States has the most
(OTCBB:BSGC) at 38.8x. The median is 1.9x. Note that we exclude multiples greater than 50x. Twenty-one companies

or domiciled. Figure 10 shows the average TEV/Revenue multiples by stock exchange. The OTCBB has the largest
TEV/Revenue (LTM) averages 4.4x: The overall average TEV/Revenue (LTM) multiple for our group is 4.4 (vs. 4.5x last

1
Russia

0.0
 Page 12

TEV/EBITDA (LTM) averages 10.4x: The average multiple for the 38 companies with positive EBITDA (and multiples
under 100x) is 10.4x LTM EBITDA (vs. 11.7x last week), led by Tencent Holdings Ltd. (SEHK:700) at 43.7x (Figure 12).
Fourteen companies have EBITDA multiples under 7x. The median multiple is 8.7x.

T E V/LT M E B IT DA (x)

50. 0
43. 7
45. 0

40. 0
34.9
35. 0

30. 0

25. 0 23. 3
19. 7
20. 0 17. 1
13. 7 13. 8 14. 0
15. 0 12. 5 12. 8 13. 3 13. 4
11. 1
9. 8 10.2 10. 8
8. 6 8. 8 9. 2 9. 5
10. 0 7.5 8. 0 8. 1 8. 3
5.7 5. 8 6. 1 6. 1
4. 6 4. 8 5. 3
5. 0 2. 6 3. 3 3. 7 3. 7
0. 3 0. 6 1. 0
0. 0
NE O WIZ G ames C orporation
J umbuc k E ntertainment L imited

G amania Digital E ntertainment C o. , Ltd.

G ungH o O nline E ntertainment, Inc .

P NI Digital Media Inc .

C hines e G amer International

O AO R B C Information S y s tems

DXN H oldings B hd

C hangy ou. c om L imited

T ree. C om, Inc .

C DC C orp.

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

Modern T imes G roup Mtg AB
U nited O nline Inc.

S NAP Interac tive, Inc.

O pen T ex t C orp.
C y berplex Inc.

NetDragon WebS oft, Inc.

V alueC lic k Inc.

S park Network s , Inc.

S ohu. com Inc.

Y D O nline C orp.

AQ Interac tive, Inc.

G ree, Inc.

E olith C o. L td.

IAC /InterAc tiveC orp.

Mix i, Inc.

T enc ent H oldings L td.

XING AG
P erfec t World C o. , L td.

Y nk K orea Inc.

O penwave S y s tems Inc.

Webz en Inc.
V elti P lc
S hutterfly , Inc.

K ings oft C o. L td.

DADA S pA
Ac toz S oft C o. , L td.

Figure 12. TEV/EBITDA Ranking

Source. Capital IQ

TEV/EBITDA (LTM) by country/exchange: Figure 13 shows the average TEV/EBITDA multiples by stock exchange.
The OTCBB has the largest number of companies (20), trading at an average multiple of 5.9x. On a geographic basis, the
United States has the most companies (35), trading at an average of 7.4x EBITDA (Figure 14). Nine of the companies are
Canadian (average 9.6x EBITDA).

Average TEV/LTM EBITDA - By Country

Average TEV/LTM EBITDA - By Exchange
16.0
25.0 20.7
14.2
14.0
20.0 14.0
12.0
13.3 13.1
15.0 10.0 11.8
14.214.0
(x)

13.3 13.2 9.6 9.5

(x)

12.8 12.5 8.0 9.2

10.0 9.2 8.6 8.3
8.3 6.0
7.0 7.4
5.0 5.9 5.8 5.7 5.3 5.3
3.3 1.0 4.0
0.0 0.3 2.0
0.3
OTCPK

OTCBB
GTSM

NasdaqGM
SEHK

KOSE

TSE

OSE

NasdaqGS

RTS
OM

CM
XTRA

KLSE

AMEX

TSX
TSXV

1.0
ASX

0.0
Germany
China

Japan

Canada
Hong

Malaysia
United

Russia
Italy
South
Korea

Kong

States
Taiwan

Australia
Sweden

# Companies 3 8 2 1 6 5 5 3 1 2 14 20 4 2 1 3 2 1
# Companies 9 3 1 10 6 9 1 3 2 35 1 2 1

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

Source. Capital IQ
 Page 13

P/E (LTM) averages 23.5x: The average multiple for the 33 companies with positive earnings (and multiples under 100x)
is 23.5x LTM EPS (vs. 22.7x last week), led by Shutterfly, Inc. (NasdaqGS: SFLY) with an 82.3x multiple (Figure 15).
Eleven companies have P/E multiples under 10x. The median is 17.2x.

P /E L T M (x)

90.0
82.3
80.0
69.0
70.0 64.7

60.0 56.1 57.2

51.0
50.0 46.0

40.0
32.4
30.0 26.0 26.4 27.2 27.9
24.3
22.0
20.1
20.0 17.2 18.6
13. 6 15.2
11.4 11.9 12.3
10.0 5.0 5.3 6.1 6.6 7.3
2.1 2.3 2.4 3.8
0.0 1.8
0.0

NE O W IZ G ames C orporation
J umbuc k E ntertainment Limited

G a mania Digita l E ntertainment C o., Ltd.

G ungHo O nline E ntertainment, Inc.

C hines e G amer International
DXN Holdings B hd

C hangy ou.c om Limited

G iant Interactive G roup, Inc.

G ameO n C o Ltd.

Modern T imes G roup Mtg AB

G ravity C o., Ltd

S handa Interac tive E ntertainment Ltd.

Neteas e.com Inc.

S NAP Intera ctive, Inc.

O pen T ex t C orp.
C y berplex Inc.

G igaMedia Ltd.

Y D O nline C orp.

S ohu.com Inc.

IAC /InterAc tiveC orp.

NetDragon WebS oft, Inc.

S park Network s , Inc.

G ree, Inc.

Mix i, Inc.

T encent Holdings Ltd.

XING AG
P erfect World C o., Ltd.

Webz en Inc.

HanbitS oft, Inc.

K ings oft C o. Ltd.

V elti P lc

S hutterfly , Inc.
Actoz S oft C o., Ltd.

Figure 15. P/E Ranking

Source. Capital IQ

P/E (LTM) by country/exchange: Figure 16 shows the average P/E multiples by stock exchange. The OTCBB has the
largest number of companies (20), trading at an average multiple of 30.1x. On a geographic basis, the United States has
the most companies (35), trading at an average of 34.9x earnings (Figure 17). Nine of the companies are Canadian
(average 31.3x EPS).

Average P/E - By Exchange Average P/E - By Country

40.0
60.0 34.9
51.0 35.0
50.0
30.0
32.7 31.3 31.1
40.0 36.5 25.0 30.4
31.1 30.4 27.9
(x)

30.0 29.4
(x)

27.9 26.6 20.0

20.0 25.3 18.9 17.2
20.1 19.2 18.6 15.0
17.2
13.4 12.3
10.0 5.3 10.0
3.8
0.0 1.8 0.0 5.0 3.8
OTCPK
OTCBB

GTSM

NasdaqGM
OSE

KOSE

SEHK

TSE

NasdaqGS

OM
KLSE

XTRA

AMEX

TSX

NYSE

2.1
ASX

0.0
Germany

Israel
United

Japan

Canada

Malaysia

China

Hong
South
Korea

Kong
States

Taiwan

Australia
Sweden

# Companies 1 8 2 20 3 3 5 2 2 14 6 1 3 2 1 4
# Companies 35 6 9 2 9 3 3 1 10 1 2 1

Figures 16 & 17. P/E Ranking (Exchange, Country)

Source. Capital IQ
 Page 14

Upcoming Events
E arnings C alendar
C ompany Date Time Quarter C onf C all Details
IAC/InterActiveCorp. (NasdaqGS:IACI) 9-Feb-10 11:00 a.m. EDT Q4/09 http://www.iac.com/Investors
Modern Times Group Mtg AB (OM:MTG B) 11-Feb-10 9:00 a.m. EDT Q4/09 http://www.mtg.se/en/Investors/Conference-calls/Registration/
PNI Digital Media Inc. (TSXV:PN) 11-Feb-10 4:30 p.m. EDT Q1/10 888-300-8196
United Online Inc. (NasdaqGS:UNTD) 17-Feb-10 2:00 p.m. EDT Q4/09 800-723-6575

Figure 18. Earnings Calendar

Source. Capital IQ
 Page 15

C omparable C ompany Analys is > Web 2.0

Pric e P erformanc e
C ompany Name C urrenc y Tic ker E xc hange US D Market C ap ($m) C urrent P ric e 1 Wk 1 Mth 3 Mth 6 Mth 1 Yr 52 Week

A ccelerize New Media, Inc. US D AC L Z OT C B B 16.1 0.56 0. 0% -13.8% -25.3% -1.8% 60.0% -30.0%
A ctoz S oft C o. , L td. KR W A052790 K OS E 109.1 14, 500 -2.0% -19.2% -4.0% -35.7% 14.2% -59.7%
A Q Interactive, Inc. JPY 3838 TS E 52.8 86,800.00 -1.4% 32.7% 87.9% 72.9% 165. 4% -12.8%
A s knet AG E UR XT R A :A5A XT R A 22.1 3.20 -4.6% -0.2% -2.6% 4. 8% -17. 0% -22.5%
A s s ociated Media H oldings Inc. US D AS MH OT C P K 0.4 0.01 -79.2% -79.6% 11.1% -28.6% 100. 0% -98.7%
B eta wave C orpora tion US D B W AV OT C B B 3.5 0.12 -14.3% -14.3% 200.0% 60.0% -40. 0% -45.5%
B eyond C ommerce, Inc. US D B Y OC OT C B B 1.9 0.03 62.5% 47.7% -35.0% -88.4% -95. 4% -98.3%
B igs tring C orp. US D BSGC OT C B B 1.4 0.02 2. 3% -4.7% -32.1% -2.6% 40.0% -60.7%
B right T hings plc GB P AIM:B G T A IM 7.6 0.02 -1.6% 7.1% 27.7% 20.0% -19. 8% -40.0%
B roadW ebA s ia Inc. US D BWBA OT C P K 5.1 0.06 -25.0% 50.0% 100.0% -73.9% -96. 0% -96.0%
C DC C orp. US D C H IN.A Nas da qG S 235.4 2.22 -5.5% -16.9% -11.6% -19.9% 152. 3% -43.4%
C ha ngyou.com Limited US D C Y OU Nas da qG S 1, 815.6 33.01 1. 0% -6.2% -1.8% -13.8% NM -31.8%
C hines e G a mer International TWD G T S M:3083 GTS M 868.0 331.50 3. 9% -20.4% -27.9% -25.9% 183. 3% -36.1%
C ornerW orld C orpora tion US D CW R L OT C B B 2.9 0.03 0. 0% 0.0% -50.0% -50.0% -88. 0% -92.7%
C yberplex Inc. C AD T S X: C X TS X 60.0 0.93 -10.6% -17.7% -32.6% -45.3% 162. 0% -53.3%
DADA S pA E UR C M:DA CM 110.6 4.98 -2.4% -16.4% -29.7% -18.7% -20. 5% -39.2%
DigitalP os t Intera ctive, Inc. US D DG LP OT C B B 3.7 0.04 -6.7% -4.5% -16.0% -16.0% 223. 1% -57.6%
DigitalT own, Inc. US D DG T W OT C B B 34.3 1.25 331.0% 4.2% 23.8% -16.7% -16. 7% -64.3%
Dolphin Digital Media, Inc. US D DP DM OT C B B 18.8 0.33 26.9% 43.5% -10.8% -23.3% -37. 7% -56.6%
DXN Holdings B hd MY R DXN K LS E 40.6 0.62 -9.6% 9.8% -2.4% 24.2% 75.7% -18.0%
E n2G o International, Inc. US D E TGI OT C B B 21.4 0.90 76.5% 38.5% 50.0% -40.0% -47. 1% -82.0%
E olith C o. L td. KR W A041060 K OS E 38.6 585.00 -12.7% -23.0% -0.8% -25.9% 0.9% -49.6%
F luid Mus ic C anada, Inc. C AD T S X: F MN TS X 88.5 1.50 -5.1% -13.3% -16.7% 25.0% 150. 0% -30.2%
F rogs ter Intera ctive P ictures AG E UR FR G XT R A 63.2 18.00 -6.2% -5.1% -4.0% 33.3% 310. 0% -16.2%
G amania Digita l E ntertainment C o., L td. TWD 6180 GTS M 232.4 49 -7.3% -9.9% 7.2% -17.0% 104. 8% -29.3%
G ameO n C o L td. JPY 3812 TS E 65.8 60800.00 -15.0% -19.4% -13.5% -40.7% -45. 7% -54.3%
G eoS entric Oyj E UR G E O1V H LS E 49.2 0.04 0. 0% -20.0% -33.3% -33.3% 33.3% -33.3%
G ia nt Interactive G roup, Inc. US D GA NY S E 1, 662.6 7.33 0. 0% -0.9% 3.5% -8.0% 17.8% -23.4%
G igaMedia L td. US D G IG M Nas da qG S 155.4 2.85 3. 3% -13.9% -27.3% -37.6% -61. 4% -63.0%
G ra vity C o., Ltd US D GR VY Nas da qG M 54.5 2 2. 6% 8.9% 29.8% -7.6% 176. 1% -25.5%
G ree, Inc. JPY T S E :3632 TS E 2, 280.4 4, 540 -10.6% -15.0% -15.8% 14.5% 63.6% -24.8%
G ungH o Online E ntertainment, Inc. JPY 3765 OS E 271.8 211, 900 -2.8% -6.5% 3.2% 4. 9% 113. 6% -24.3%
H anbitS oft, Inc. KR W A047080 K OS E 70.7 3775.00 -5.0% -1.0% 5.9% -13.1% -2.5% -43.1%
IAC /InterA ctiveC orp. US D IA C I Nas da qG S 2, 792.5 21.16 4. 3% 0.7% 7.7% 14.5% 40.6% -5.0%
InternetArray, Inc. US D INAR OT C P K 0.0 0.00 -20.0% -20.0% -76.5% -81.0% -99. 8% -99.8%
is eemedia Inc. C AD IE E T S XV 9.9 0.20 14.3% -4.8% -9.1% 185.7% 66.7% -25.9%
J umbuck E ntertainment Limited AU D AS X: J MB AS X 13.1 0.31 3. 3% 1.6% -11.4% -16.2% -22. 5% -38.0%
K ings oft C o. L td. HK D 3888 S E HK 848.6 6.01 0. 3% -7.8% -20.6% -27.2% 103. 0% -36.5%
L ingo Media C orpora tion C AD T S XV :LM T S XV 12.2 1.05 -4.5% -22.2% 7.1% 10.5% 16.7% -33.5%
L ookS mart, L td. US D LO OK Nas da qG M 16.4 0.96 -0.3% -16.5% -16.5% -29.3% -29. 9% -38.5%
Ma gnitude Information S ys tems Inc. US D MAG Y OT C B B 6.9 0.02 10.7% -26.2% 72.2% 121.4% -38. 0% -60.3%
Mixi, Inc. JPY 2121 TS E 921.2 534, 000 -15.9% -18.2% -26.6% -17.0% 22.5% -38.3%
Modern T imes G roup Mtg AB SEK MT G B OM 3, 041.5 342 -0.8% -6.6% 4.5% 19.9% 149. 9% -7.5%
MO K O .mobi L imited AU D MK B AS X 10.3 0.10 -16.7% -35.5% 13.6% 53.8% 150. 0% -50.0%
Multiplied Media C orpora tion C AD T S XV :MMC T S XV 28.4 0.23 2. 2% -2.1% 4.5% 228.6% 228. 6% -13.2%
Myriad G roup AG C HF MY R N S WX 195.1 4.72 0. 4% -8.7% -1.5% 11.1% -7.5% -23.7%
NE O W IZ G ames C orporation KR W A095660 K OS E 511.0 28, 350 -8.4% -28.3% -28.4% -13.7% 80.9% -36.9%
NetDra gon W ebS oft, Inc. HK D 777 S E HK 279.6 4.11 0. 2% -9.9% -21.3% -40.3% 39.8% -42.5%
Netea s e. com Inc. US D NT E S Nas da qG S 4, 394.6 33.93 2. 8% -14.7% -18.8% -27.3% 76.3% -30.0%
NeuLion Incorpora ted C AD T S X: NL N TS X 65.5 0.60 -10.4% -9.1% -15.5% -33.3% 20.0% -53.8%
NeXplore C orpora tion US D NXP C OT C P K 31.2 0.56 -20.0% -6.7% -28.2% -17.6% -29. 1% -41.1%
Ngi G roup Inc. JPY 2497 TS E 39.9 28, 800 2. 9% 24.0% 6.9% -12.3% 6.0% -33.8%
Northgate T echnologies Limited INR 590057 BSE 15.8 21.25 -13.1% -27.2% -28.0% -39.1% -54. 4% -64.5%
O AO R B C Information S ys tems US D R BCI R TS 180.3 1.30 -7.1% -7.0% -13.3% 13.0% 322. 8% -23.5%
O riented Media G roup B erha d MY R OME DIA K LS E 5.2 0.14 0. 0% 12.5% 68.8% 92.9% -38. 6% -28.9%
O pen T ext C orp. US D OT E X Nas da qG S 2, 626.1 46.51 16.3% 13.8% 18.9% 19.9% 30.8% -0.9%
O penwa ve S ys tems Inc. US D OP W V Nas da qG S 174.3 2.08 -5.9% -15.4% -0.5% -23.2% 133. 7% -33.5%
T he P a rent C ompany US D K IDS . Q OT C P K 0.2 0.01 -47.4% 42.9% 42.9% -33.3% -66. 7% -75.0%
P erfect W orld C o., Ltd. US D PWRD Nas da qG S 1, 864.4 37.47 -1.9% -13.6% -23.6% -8.2% 162. 0% -25.8%
P NI Digital Media Inc. C AD T S XV :P N T S XV 53.9 1.71 -2.8% 1.2% -2.3% 17.1% -3.4% -19.7%
Q uepa s a C orp. US D QP S A OT C B B 36.4 2.86 -3.1% 7.9% 104.3% 104.3% 100. 0% -9.2%
R ea l V alue E s tates , Inc. US D R V LU OT C B B 8.0 1.25 -16.7% 0.0% NM NM NM -16.7%
S ahara Media H oldings , Inc. US D S HH D OT C B B 7.8 0.25 0. 0% -37.5% -51.0% -91.7% -91. 7% -92.3%
S ha nda Interactive E nterta inment L td. US D S NDA Nas da qG S 3, 204.7 47.65 3. 2% -19.1% -2.8% -1.2% 56.0% -26.7%
S hutterfly, Inc. US D S F LY Nas da qG S 451.5 17.96 13.5% 1.1% 16.9% 10.7% 111. 5% -4.6%
S K C ommunications C o. , L td. KR W A066270 K OS E 445.8 12, 450 -15.6% -19.9% 75.8% 20.3% 60.0% -32.3%
S NA P Intera ctive, Inc. US D S TVI OT C B B 5.9 0.18 -5.3% 80.0% 157.1% 35.0% -46. 0% -48.6%
S ocial Media V entures Inc. US D S MV I OT C P K 0.0 0.00 -22.2% -37.8% -72.3% -97.8% -99. 8% -99.8%
S ocialwis e, Inc. US D S CLW OT C B B 21.9 0.46 0. 0% -6.1% -9.8% -29.2% 4.5% -54.9%
S ohu.com Inc. US D S O HU Nas da qG S 1, 871.3 48.66 -3.1% -17.8% -12.5% -22.2% 2.7% -32.7%
S pa rk Networks , Inc. US D LO V A ME X 60.7 2.95 2. 4% 1.4% 13.5% 19.0% 15.7% -12.5%
S pectrumDNA, Inc. US D S P XA OT C B B 7.3 0.15 0. 0% -18.9% 0.0% -31.8% 50.0% -66.7%
T encent H oldings Ltd. HK D 700 S E HK 32,334. 6 138 -2.3% -18.0% -3.8% 21.8% 182. 8% -22.0%
T he9 L imited US D NC T Y Nas da qG S 171.0 6.81 -2.6% -17.5% -11.1% -25.9% -53. 0% -58.7%
T heS treet.com, Inc. US D TS CM Nas da qG M 92.8 3.04 -1.6% 26.7% 26.1% 28.3% 16.9% -10.9%
T ree.C om, Inc. US D TR E E Nas da qG M 81.9 7.51 3. 0% -18.7% -1.6% -21.3% 92.1% -42.5%
U nilava C orporation US D UNLA OT C B B 17.5 0.18 25.0% -45.3% NM NM NM -68.2%
U nis erve C ommunica tions C orp. C AD T S XV :US S T S XV 3.0 0.13 62.5% 44.4% 271.4% 188.9% 62.5% 0.0%
U nited O nline Inc. US D UNT D Nas da qG S 536.3 6.34 -2.0% -13.9% -24.0% -14.3% 22.2% -33.0%
U OMO Media, Inc US D UO MO OT C B B 2.8 0.03 -20.0% -36.0% -60.0% -77.1% -60. 0% -97.0%
V alueC lick Inc. US D V CLK Nas da qG S 793.3 9.26 -3.1% -10.8% -10.5% -14.6% 29.9% -33.6%
V elti P lc GB P VEL A IM 192.3 3.28 63.8% 63.8% 85.0% 98.5% 177. 5% -1.4%
V OIS , Inc. US D V O IS OT C B B 9.9 0.01 -9.1% 0.0% -28.6% 85.2% 33.3% -56.5%
W ebzen Inc. KR W K O S E : A069080 K OS E 119.5 11, 800 -9.9% 8.3% -4.1% -14.5% 65.7% -43.0%
W izzard S oftwa re C orporation US D W ZE A ME X 19.8 0.37 2. 8% -2.7% -26.0% -22.9% -49. 3% -53.2%
W orlds .com Inc. US D W DDD OT C B B 4.8 0.09 0. 0% 0.0% -10.0% 0. 0% -55. 0% -59.1%
XING A G E UR O1B C XT R A 198.0 27.42 -5.5% -13.2% -16.6% -2.1% -6.9% -27.8%
Y D Online C orp. KR W A052770 K OS E 70.5 5, 500 0. 0% -27.3% -22.8% -38.3% -22. 4% -55.6%
Y nk K orea Inc. KR W A023770 K OS E 13.5 2, 965 5. 9% -5.1% -26.2% -39.7% -33. 8% -65.9%
H igh 331.0% 80.0% 271.4% 228.6% 322. 8% 0.0%
L ow -79.2% -79.6% -76.5% -97.8% -99. 8% -99.8%
Average 757.1 2.5% -4.9% 4.8% 0.1% 39.4% -42.3%
Media n -1.9% -7.8% -4.1% -14.3% 21.1% -38.0%

Figure 19. Price Performance

Source. Capital IQ
 Page 16

C omparable C ompany Analys is > Web 2.0

Valuation Multiples
P rimary US D Market TE V/L TM TE V/ NTM TE V/L TM TE V/NTM
C ompany Name S ec tor C ountry E xc hange Ticker C ap ($m) R evenue R evenue E B ITDA E B ITDA P /L TM E P S P /NTM E P S P /TangB V
Accelerize New Media, Inc. Direct Marketing U nited S ta tes OTCB B AC LZ 16.1 5.1x - - - - - -
Actoz S oft C o., Ltd. G aming S outh K orea K OS E A052790 109.1 0.6x - 2. 6x - 15.2x - 1.6x
AQ Intera ctive, Inc. G aming J apan TS E 3838 52.8 0.4x - 8. 0x - - - 0.8x
As knet A G G aming G erma ny XT R A XT R A :A5A 22.1 0.1x - - - - - -
As s ocia ted Media Holdings Inc. G aming U nited S ta tes OTCP K AS MH 0.4 13.2x - - - - - -
B etawave C orpora tion Media U nited S ta tes OTCB B B W AV 3.5 0.1x - - - - - 2.4x
B eyond C ommerce, Inc. S ocial Networking U nited S ta tes OTCB B B YOC 1.9 1.0x - - - - - -
B igs tring C orp. Ins ta nt Mes s aging U nited S ta tes OTCB B BSGC 1.4 38.8x - - - - - -
B right T hings plc S ocial Networking U nited K ingdom AIM AIM:B G T 7.6 34.9x - - - - - 9.1x
B roadW ebAs ia Inc. S ocial Networking U nited S ta tes OTCP K BWBA 5.1 - - - - - - -
C DC C orp. G aming H ong K ong N as da qG S C HIN.A 235.4 0.6x 0.6x 10.2x 4.9x - 9.8x 10.0x
C hangyou.com Limited G aming C hina N as da qG S C Y OU 1,815.6 5.9x 4.6x 9. 5x 7.2x 12.3x 10.2x 9.5x
C hines e G amer Interna tional G aming T a iwa n GTS M G T S M:3083 868.0 11.4x - 19.7x - 26.4x - 12.6x
C ornerW orld C orporation C ontent U nited S ta tes OTCB B CW R L 2.9 1.3x - - - - - -
C yberplex Inc. A dvertis ing C ana da TS X T S X: C X 60.0 0.4x 0.3x 3. 3x 2.6x 5.3x 5.6x 2.1x
DA DA S pA S ocial Networking Italy CM C M:DA 110.6 0.7x - 5. 3x - - - -
DigitalP os t Interactive, Inc. C ontent U nited S ta tes OTCB B DG L P 3.7 4.9x - - - - - -
DigitalT own, Inc. S ocial Networking U nited S ta tes OTCB B DG T W 34.3 - - - - - - -
Dolphin Digital Media, Inc. S ocial Networking U nited S ta tes OTCB B DP DM 18.8 - - - - - - -
DXN Holdings B hd S ocial Networking Mala ys ia K LS E DXN 40.6 0.7x - 3. 7x - 5.0x - 0.8x
E n2G o International, Inc. S ocial Networking U nited S ta tes OTCB B E TGI 21.4 - - - - - - -
E olith C o. L td. G aming S outh K orea K OS E A041060 38.6 6.5x - 13.7x - - - 0.9x
F luid Mus ic C a nada, Inc. Media U nited S ta tes TS X T S X:F MN 88.5 14.7x 14.7x - - - - 6.5x
F rogs ter Interactive P ictures A G G aming G erma ny XT R A FR G 63.2 6.9x - - - - - 8.3x
G amania Digital E ntertainment C o., Ltd. G aming T a iwa n GTS M 6180 232.4 1.4x - 8. 3x - 24.3x - 2.9x
G ameO n C o Ltd. G aming J apan TS E 3812 65.8 - - - - 6.6x - 0.8x
G eoS entric Oyj Mobile F inland H LS E G E O1V 49.2 12.0x - - - - - -
G iant Interactive G roup, Inc. G aming C hina NY S E GA 1,662.6 - - - - 1.8x 15.2x 0.3x
G igaMedia Ltd. G aming T a iwa n N as da qG S G IG M 155.4 0.5x 0.9x - 19.2x 6.1x - 1.4x
G ravity C o., Ltd G aming S outh K orea N as da qG M GR VY 54.5 - - - - 0.0x - 0.0x
G ree, Inc. S ocial Networking J apan TS E T S E : 3632 2,280.4 7.9x - 13.4x - 27.2x - 14.2x
G ungH o O nline E nterta inment, Inc. Media J apan OS E 3765 271.8 1.9x - 8. 6x - 51.0x - 8.4x
Ha nbitS oft, Inc. G aming S outh K orea K OS E A047080 70.7 1.0x - - - 69.0x - 1.9x
IAC /InterActiveC orp. Media U nited S ta tes N as da qG S IAC I 2,792.5 0.8x 0.8x 14.0x 5.8x 11.9x 31.3x 1.4x
InternetA rray, Inc. Media U nited S ta tes OTCP K INA R 0.0 1.1x - - - - - -
is eemedia Inc. C ontent C ana da T S XV IE E 9.9 5.5x - - - - - -
J umbuck E ntertainment Limited S ocial Networking Aus tra lia AS X AS X:J MB 13.1 0.4x - 1. 0x - 3.8x - 1.6x
K ings oft C o. Ltd. G aming C hina S E HK 3888 848.6 5.6x - 13.8x - 18.6x - 4.5x
Lingo Media C orpora tion L earning C ana da T S XV T S XV : LM 12.2 8.9x - - - - - -
LookS ma rt, L td. Direct Marketing U nited S ta tes N as da qG M L OOK 16.4 - - - - - - 0.7x
Magnitude Information S ys tems Inc. S ocial Networking U nited S ta tes OTCB B MA G Y 6.9 - - - - - - -
Mixi, Inc. S ocial Networking J apan TS E 2121 921.2 5.6x - 17.1x - 46.0x - 5.9x
Modern T imes G roup Mtg AB Media S weden OM MT G B 3,041.5 1.9x - 13.3x - 17.2x - -
MOK O .mobi Limited S ocial Networking Aus tra lia AS X MK B 10.3 13.5x - - - - - 9.5x
Multiplied Media C orpora tion Mobile C ana da T S XV T S XV :MMC 28.4 - 7.1x - - - - 20.7x
Myriad G roup AG Mobile S witzerla nd SWX MY R N 195.1 3.1x - - - - - -
NE OW IZ G ames C orporation G aming S outh K orea K OS E A095660 511.0 2.4x - 8. 8x - 26.0x - 13.2x
NetDra gon W ebS oft, Inc. G aming C hina S E HK 777 279.6 1.4x - 4. 6x - 13.6x - 1.5x
Netea s e.com Inc. G aming C hina N as da qG S NT E S 4,394.6 - - - - 2.4x 12.8x 0.7x
NeuLion Incorporated V ideo C ana da TS X T S X:NL N 65.5 2.0x - - - - - 8.9x
NeXplore C orporation C ontent U nited S ta tes OTCP K NXP C 31.2 - - - - - - -
Ngi G roup Inc. Media J apan TS E 2497 39.9 - - - - - - 0.7x
Northgate T echnologies Limited Direct Marketing India BS E 590057 15.8 0.3x - - - - - -
O AO R B C Information S ys tems Media R us s ia R TS R BCI 180.3 0.0x - 0. 3x - - - -
O riented Media G roup B erhad Media Mala ys ia K LS E O ME DIA 5.2 1.9x - - - - - 2.3x
O pen T ext C orp. C ollabora tion C ana da N as da qG S OT E X 2,626.1 3.3x 2.8x 12.8x 9.8x 57.2x 14.5x -
O penwave S ys tems Inc. Mobile U nited S ta tes N as da qG S OP W V 174.3 0.4x 0.4x 11.1x 3.3x - 26.0x 2.4x
T he P a rent C ompany Mobile U nited S ta tes OTCP K K IDS .Q 0.2 0.2x 0.2x - 12.8x - - -
P erfect W orld C o., Ltd. G aming C hina N as da qG S PWRD 1,864.4 0.3x 1.6x 0. 6x 3.1x 2.3x 10.9x 1.0x
P N I Digital Media Inc. Digita l Ima ging C ana da T S XV T S XV :P N 53.9 2.2x 1.9x 12.5x 6.1x - 10.7x 12.4x
Q uepa s a C orp. S ocial Networking U nited S ta tes OTCB B QP S A 36.4 - - - - - - -
R eal V a lue E s ta tes , Inc. Media Is ra el OTCB B R V LU 8.0 - - - - - - -
S a hara Media Holdings , Inc. Media U nited S ta tes OTCB B S HH D 7.8 - - - - - - 9.5x
S handa Interactive E nterta inment Ltd. G aming C hina N as da qG S S NDA 3,204.7 - - - - 2.1x 13.3x 0.3x
S hutterfly, Inc. Digita l Ima ging U nited S ta tes N as da qG S S FLY 451.5 1.1x 1.1x 7. 5x 5.4x 82.3x 94.5x 2.3x
S K C ommunications C o., Ltd. S earch S outh K orea K OS E A066270 445.8 2.3x - 34.9x - - - -
S N AP Interactive, Inc. Dating U nited S ta tes OTCB B S TVI 5.9 1.3x - 8. 1x - 32.4x - 3.1x
S ocial Media V entures Inc. Dating U nited S ta tes OTCP K S MV I 0.0 4.6x - - - - - -
S ocialwis e, Inc. S ocial Networking U nited S ta tes OTCB B S CLW 21.9 - - - - - - -
S ohu.com Inc. G aming C hina N as da qG S S O HU 1,871.3 2.7x 2.2x 6. 1x 5.0x 11.4x 12.7x 3.4x
S park N etworks , Inc. S ocial Networking U nited S ta tes AME X L OV 60.7 1.2x - 5. 7x - 20.1x - 27.4x
S pectrumDN A, Inc. Media U nited S ta tes OTCB B S P XA 7.3 - - - - - - -
T encent Holdings Ltd. P orta l C hina S E HK 700 32,334.6 22.3x - 43.7x - 56.1x - 24.9x
T he9 L imited G aming C hina N as da qG S NC T Y 171.0 - - - - - - 0.1x
T heS treet.com, Inc. Media U nited S ta tes N as da qG M TS CM 92.8 0.5x 0.5x - - - - 1.2x
T ree.C om, Inc. P orta l U nited S ta tes N as da qG M TREE 81.9 0.3x 0.2x 5. 8x 4.5x - - 1.2x
Unilava C orporation Media U nited S ta tes OTCB B U NLA 17.5 3.4x - - - - - 0.7x
Unis erve C ommunications C orp. S ocial Networking C ana da T S XV T S XV :US S 3.0 0.5x - - - - - -
United Online Inc. Media U nited S ta tes N as da qG S U NT D 536.3 0.8x 0.8x 3. 7x 3.3x - 4.8x -
UO MO Media, Inc Media C ana da OTCB B UO MO 2.8 3.4x - - - - - -
V a lueC lick Inc. Media U nited S ta tes N as da qG S V CLK 793.3 1.2x 1.3x 4. 8x 4.8x - 14.2x 4.3x
V elti P lc Media U nited K ingdom AIM VEL 192.3 2.2x - 10.8x - 22.0x - 6.3x
V O IS , Inc. S ocial Networking U nited S ta tes OTCB B V OIS 9.9 - - - - - - -
W ebzen Inc. G aming S outh K orea K OS E K OS E :A069080 119.5 2.6x - 23.3x - 64.7x - 1.1x
W izzard S oftware C orporation P odca s ting U nited S ta tes AME X W ZE 19.8 4.1x - - - - - -
W orlds .com Inc. C ontent U nited S ta tes OTCB B W DDD 4.8 - - - - - - -
XIN G AG S ocial Networking G erma ny XT R A O1B C 198.0 2.5x - 9. 2x - 27.9x - 6.0x
Y D Online C orp. G aming S outh K orea K OS E A052770 70.5 1.3x - 6. 1x - 7.3x - 2.2x
Y nk K orea Inc. G aming S outh K orea K OS E A023770 13.5 1.0x - 9. 8x - - - 0.6x
High 32,334.6 38.8x 14.7x 43.7x 19.2x 82.3x 94.5x 27.4x
Low 0.0 0.0x 0.2x 0. 3x 2.6x 0.0x 4.8x 0.0x
Average 757.1 4.4x 2.3x 10.4x 6.5x 23.5x 19.1x 5.2x
Median 53.9 1.9x 1.0x 8. 7x 5.0x 17.2x 12.8x 2.3x

Figure 20. Valuation Comparison

Source. Capital IQ
 Page 17

C omparable C ompany Analys is > Web 2.0

S ummary by C ountry
C ompany Name US D Market C ap ($m) Avg US D Market C ap ($m) US D L TM Total R ev ($m) US D L TM Total E B ITDA ($m) E B ITDA %

United S tates 29 C hina 56, 945. 8 C hina 5,694. 6 C hina 4,496. 8 C hina 2, 262. 8 C hina 49. 0%
C hina 10 U nited S ta tes 5, 465. 2 S weden 3,266. 2 United S tates 3,752. 1 United S tates 393. 7 A us tralia 42. 8%
C a na da 9 J a pan 4, 440. 9 J apan 740. 1 S weden 1,942. 0 S weden 274. 4 T aiwan 37. 3%
S outh K orea 9 S weden 3, 266. 2 T aiwan 515. 6 C a na da 992. 4 J a pa n 213. 0 J apan 24. 3%
J a pa n 6 C anada 2, 538. 6 C anada 282. 1 S outh K orea 740. 1 C a na da 199. 5 S outh K orea 20. 1%
T a iwa n 3 S outh K orea 1, 845. 8 Hong K ong 237. 5 J a pa n 680. 8 S outh K orea 133. 5 S weden 14. 1%
G erma ny 3 T a iwa n 1, 546. 9 S witzerla nd 205. 8 T a iwa n 404. 6 T a iwa n 65. 0 Italy 13. 1%
Aus tralia 2 G ermany 318. 0 S outh K orea 205. 1 Hong K ong 334. 2 Ita ly 31. 0 R us s ia 13. 1%
S witzerla nd 1 Hong K ong 237. 5 R us s ia 193. 9 Ita ly 236. 1 R us s ia 20. 4 Hong K ong 6. 0%
India 1 S witzerla nd 205. 8 U nited S ta tes 188. 5 G erma ny 171. 4 Hong K ong 20. 0 S witzerla nd 5. 4%
F inla nd 1 R us s ia 193. 9 Ita ly 136. 8 R us s ia 156. 3 G erma ny 9. 7 G ermany -7. 4%
United K ingdom 1 Ita ly 136. 8 G ermany 106. 0 Ma lays ia 78. 5 Aus tralia 4. 9 C anada -10. 6%
Ita ly 1 F inland 51. 3 F inland 51. 3 S witzerla nd 63. 0 S witzerla nd 3. 4 U nited S ta tes -15. 4%
Hong K ong 1 Malays ia 36. 4 Malays ia 36. 4 India 47. 7 United K ingdom -2. 7 F inland NA
S weden 1 Aus tralia 29. 4 India 20. 2 Aus tralia 17. 8 F inla nd -18. 5 India NA
R us s ia 1 India 20. 2 Aus tralia 14. 7 F inla nd 4. 5 India -51. 2 U nited K ingdom NA
Ma lays ia 1 U nited K ingdom 5. 6 U nited K ingdom 5. 6 United K ingdom 0. 0 Ma lays ia -85. 2 Mala ys ia NA

G rand Total 80 G rand Total 77,284.4 G rand Total 966.1 G rand Total 14,118.5 G rand Total 3,473.8 G rand Total 11.8%

Figure 21. Comparison by Country

Source. Capital IQ

C omparable C ompany Analys is > Web 2.0

S ummary by E xc hange
C ompany Name US D Market C ap ($m) Avg US D Market C ap ($m) US D L TM Total R ev ($m) US D L TM Total E B ITDA ($m) E B ITDA %

OT C B B 16 S E HK 40, 705. 3 S E HK 13,568. 4 OM 1,942. 0 Na s daqG S 1, 918. 2 NY S E 68. 2%

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

G rand Total 80 G rand Total 77,284.4 G rand Total 966.1 G rand Total 14,118.5 G rand Total 3,473.8 G rand Total 11.8%

Figure 22. Comparison by Exchange

Source. Capital IQ
 Page 18

F inanc ing - L as t Three Months (US $ m)

F in. Amount (Million) Type of financing
Month C ompany Name C ountry Angel/S eed Debt financing S eries A S eries B S eries C S eries D S eries E G rand Total
Dec-09 Zynga US A 180.0 180.0
Y ouku C hina 40.0 40.0
Zoos k US A 30.0 30.0
G roupon US A 30. 0 30.0
L ithium US A 18. 0 18.0
gW allet US A 12.5 12.5
MobG old C hina 12. 0 12.0
Movik Networks US A 8.5 8. 5
G owalla US A 8.4 8. 4
G ogii US A 8.2 8. 2
L iveMoc ha US A 8.0 8. 0
S onicMule US A 8. 0 8. 0
kaC hing US A 7.5 7. 5
S eekingAlpha Is ra el 7.0 7. 0
P ageonce US A 6.5 6. 5
G enius .c om US A 6.5 6. 5
C urs e US A 6.0 6. 0
AlikeL is t US A 5.0 5. 0
P owerR eviews US A 4. 9 4. 9
S maato US A 4.5 4. 5
S C VNG R US A 4.0 4. 0
Tonchidot J apan 4.0 4. 0
Twilio US A 3.7 3. 7
5 Minutes C hina 3.5 3. 5
J anR ain US A 3.3 3. 3
S tockTwits US A 3.0 3. 0
Artic le One P artners US A 3.0 3. 0
W his key Media US A 2.5 2. 5
Appolic ious US A 2.4 2. 4
G rapes hot UK 2.4 2. 4
C enter'd US A 1.9 1. 9
W ePay US A 1.7 1. 7
J inni Is ra el 1.6 1. 6
Vis ible Tec hnologies US A 1. 0 1. 0
G lobalMotion Media US A 1.0 1. 0
Dec-09 Total 2.5 1.0 58.0 101.5 210.9 76.5 450.4

J an-10 Quantcas t US A 27. 5 27.5

P aymo US A 25. 0 25.0
Y elp US A 25. 0 25.0
Vis ible Tec hnologies US A 22.0 22.0
G uvera Aus tra lia 20. 0 20.0
6 W aves C hina 17.5 17.5
S pic eworks US A 16. 0 16.0
S MS G upS hup India 12. 0 12.0
Aggregate K nowledge US A 9. 0 9. 0
F lurry US A 7.0 7. 0
B uyW ithMe US A 5.5 5. 5
G aikai Netherlands 5.0 5. 0
Apis phere US A 4.6 4. 6
E yeka F rance 4.3 4. 3
B eezag US A 2.5 2. 5
J elli US A 2.0 2. 0
S way US A 2.0 2. 0
OneF orty US A 2.0 2. 0
B lippy US A 1.6 1. 6
G raphic.ly US A 1.2 1. 2
XIHA F inla nd 1.0 1. 0
S ocialGO US A 0.8 0. 8
J oonto US A 0.6 0. 6
Drimmi R us s ia
J an-10 Total 5.4 40.9 23.3 97.5 22.0 25.0 214.1

F eb-10 B lue K ai US A 21. 0 21.0

Avvas i C a na da 14. 1 14.1
B rightR oll US A 10. 0 10.0
Y odle US A 10.0 10.0
Y ammer US A 10. 0 10.0
TuneW iki US A 7.0 7. 0
Vivox US A 6. 8 6. 8
F ynanaz US A 6.5 6. 5
C ognitive Matc h UK 2.5 2. 5
P ros per.com US A 2. 0 2. 0
R anker US A 0.8 0. 8
Apps F ire F rance
F eb-10 Total 0.8 2.0 6.5 33.6 37.8 10.0 90.6

G rand Total 8.7 3.0 105.4 158.4 346.2 108.5 25.0 755.2

Figure 23. Financing, Last Three Months

Source. Company reports
 Page 19

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

C ompany HQ Webs ite Des cription
Apps F ire F rance www. apps fire. com Apps F ire is a dis covery platform for mobile a pplica tions .
AppVee US A www. appvee. com As of F ebrua ry 2, 2010, AppV ee, LL C was acquired by Appolicious Inc. AppV ee, LLC operates review W ebs ites for mobile a pplica tions . T he
company was incorpora ted in 2008 and is ba s ed in O rlando, F lorida.
Avvas i C a nada www. avvas i. com Avvas i Inc. provides s ys tems play in video proces s ing s olutions for cable, s atellite and Internet protocol televis ion. T he company develops
video networking technology. T he company was founded in 2008 and is bas ed in K itchener, C a nada.
B lue K ai US A www. blueka i. com B lue K ai, Inc. operates an online platform for intent-focus ed data exchange. Its platform enables marketers to cus tomize and own data to
boos t advertis ement targeting and dis cover new pros pects ; publis hers to provide intent data and ea rn revenue; and cons umers to manage
what mark eters know about them. T he company was incorporated in 2007 and is bas ed in B ellevue, W a s hington.
B rightR oll US A www. brightroll. com B rightR oll, Inc. operates a video a dvertis ing network in the United S tates . It executes video ad campaigns on online media properties for
brand advertis ers and agencies . T he company offers pre-roll or mid-roll video a dvertis ements , click-to-play video a dvertis ements , video
tickers , video overlays , a nd in game video a dvertis ements . It a ls o provides optimization and targeting s olutions , proprietary ad units ,
cons olidated reporting s olutions , and integration s olutions with third party ad s ervers . T he company, formerly known as P os tR oller, was
founded in 2006 and is headquartered in S an F rancis co, C alifornia with an additiona l office in the United K ingdom. It has opera tions in
Aus tralia, C a nada, Mexico, and the United K ingdom.
C ognitive Match UK www. cognitivematch. com C ognitive Match Limited develops s oftware s olutions that ma tch individua ls with content online and pers onaliz e their experience. C ognitive
Match Limited was formerly known as F avy Limited a nd changed its name to C ognitive Match Limited in March 2009. T he company was
incorporated in 2008 and is ba s ed in London, United K ingdom.
F ynanaz US A www. fynanz . com F ynanz , Inc. offers online lending marketpla ce. T he company was founded in 2007 and is ba s ed in New Y ork, New Y ork.
G lam Media US A www. glammedia. com G lam Media, Inc. , an online media company, owns and opera tes lifes tyle W ebs ites and blogs for women. Its W ebs ites enable the us ers to
expres s opinions on a ra nge of lifes tyle topics , including s tyle, fas hion, s hopping, wellnes s , and food. G lam Media, Inc. was founded in 2003
a nd is bas ed in B ris bane, C alifornia with a n additional office in New Y ork, New Y ork. T he company has opera tions in the United S tates , the
United K ingdom, C anada, and Aus tralia.
P ros per.com US A www. pros per. com P ros per is a people-to-people lending marketpla ce that attempts to make cons umer lending more financially and s ocially rewarding. At
P ros per, people lis t and bid on loans us ing P ros per’s online auction platform. P ros pective lenders s et their minimum interes t ra te and bid in
increments of $50 to $25, 000 on loan lis tings they s elect. P ros per generates revenue by collecting a one-time 1% or 2% fee on funded loans
from borrowers , and as s es s es a 0. 5% or 1. 0% annual loa n s ervicing fee to lenders .
R anker US A www. ranker. com R ank er, L LC provides W ebs ite des igning s ervices . T he company was incorporated in 2007 and is bas ed in Los Angeles , C alifornia.
S tylehive US A www. s tylehive. com S tylehive is a s ocial bookmark ing s ite tha t is focus ed on s hopping. S tylehive helps its us ers to follow and s hare s tyles they like by creating
tagged collections . S tylehive’s members can comment a nd s peak with other members and profes s ionals can promote thems elves and get
noticed by the world for their s tyle. S tylehive lets its members build and s hare their own s hopping wis hlis ts for the holidays , weddings and
parties .
TuneW iki US A www. tunewiki.com T uneW iki, Inc. provides a n online s ervice cons is ting of a community-created lyrics s ynchroniza tion databa s e and an online/mobile
community. It allows its us ers to edit lyrics in the databas e, as well a s us e forums , import blogs , and pa rticipate in chat rooms . T he company
wa s founded in 2007 and is bas ed in Milpitas , C alifornia.
Us tream US A www. us tream. tv Us tream. tv, Inc. provides online video s ervices . T he company offers a platform to broadcas t live video on the Internet. It als o combines live
video broadcas ting via a W ebcam with live IR C cha t. Us tream. tv, Inc. was founded in 2006 and is bas ed in Mountain V iew, C alifornia.
Vivox US A www. vivox. com V ivox, Inc. provides voice chat, video, ins ta nt mes s aging, a nd pres ence for online games , virtual worlds , a nd other online communities . T he
company offers P recis ion S tudio S DK that ena bles to implement integrated s olutions ; Mana ged S ervice that delivers and s upports voice cha t
a nd communication tools to online ga mes and virtual worlds ; a nd s olutions for s ocial networking, cons umer communities , online games , and
virtual worlds . It s erves game and virtual world developers and publis hers . V ivox was formerly known as Libretel, Inc. and changed its name
to V ivox, Inc. in November 2005. T he company was founded in 2003 and is ba s ed in Natick, Mas s achus etts . V ivox, Inc. opera tes as a
s ubs idiary of P ulvermedia Inc.
Yammer US A www. yammer. com Y ammer, Inc. operates a company s ocial network. Its network allows employees to connect and s ha re by pos ting mes s ages . T he company’s
network als o s erves as a company directory in which every employee has a profile. In addition, it offers des k top, B la ckB erry, iP hone, IM,
ema il, and S MS clients . Y ammer, Inc. was formerly a s ubs idiary of G eni, Inc. Y ammer was founded in 2008 and is bas ed in W es t Hollywood,
Yodle US A www. yodle. com C odle,
Y alifornia.
Inc. provides online advertis ing s ervices for bus ines s es . It enables to promote bus ines s on s earch engines and W eb s ites . T he
company s erves various s ervice indus tries , s uch as beauty and pers ona l care, bus ines s and profes s ional s ervices , hea lth and medical,
home and garden, and travel and lifes tyle. Y odle, Inc. was formerly known as Natpal, Inc. T he company was founded in 2005 and is bas ed in
New Y ork, New Y ork.

Figure 24. Company Descriptions

Source. Company reports, Capital IQ, Crunchbase
 Page 20

RELEVANT DISCLOSURES APPLICABLE TO: NONE

1. None applicable.

ANALYST CERTIFICATION
Each analyst of Mackie Research Capital Corporation whose name appears in this report hereby certifies that (i) the
recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii)
no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or
recommendations expressed in this research report.

This report has been created by Analysts that are employed by Mackie Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report.
I n f o r ma t i o n a b o u t M a cki e Re s e a r ch C a p i t a l C o r p o r a t i o n ’ s Ra t i n g S y st e m , t h e d i s t r i b u t i o n o f o u r r e s e a r c h t o c l i e n t s a n d t h e p e r ce n t a g e o f r e c o mme n d a t i o n s wh i ch a r e i n
e a c h o f o u r r a t i n g ca t e g o r i e s i s a va i l a b l e o n o u r we b s i t e a t ww w. ma c k i e r e se a r ch . co m.

T h e i n f o r ma t i o n c o n t a i n e d i n t h i s r e p o r t h a s b e e n d r a wn f r o m s o u r c e s b e l i e v e d t o b e r e l i a b l e b u t i t s a c c u r a c y o r c o mp l e t e n e s s i s n o t g u a r a n t e e d , n o r i n p r o vi d i n g i t d o e s
M a c k i e R e se a r c h C a p i t a l C o r p o r a t i o n a s s u me a n y r e sp o n si b i l i t y o r l i a b i li t y. M a c ki e R e s e a r ch C a p i t a l C o r p o r a t i o n , i t s d i r e c t o r s , o f f i c e r s a n d o t h e r e mp l o y e e s ma y , f r o m
t i me t o t i me , h a v e p o si t i o n s i n t h e s e c u r i t i e s me n t i o n e d h e r e i n . C o n t e n t s o f t h i s r e p o r t c a n n o t b e r e p r o d u c e d i n wh o l e o r i n p a r t wi t h o u t t h e e xp r e s se d p e r mi s si o n o f
M a c k i e R e se a r c h C a p i t a l Co r p o r a t i o n . ( U . S. I n st i t u t i o n a l Cl i e n t s — R e se a r ch C a p i t a l U. S . A . I n c. ( a wh o l l y o wn e d s u b si d i a r y o f M a c ki e R e s e a r c h C a p i t a l C o r p o r a t i o n )
a c c e p t s r e s p o n si b i l i t y f o r t h e c o n t e n t s o f t h i s r e p o r t s u b je c t t o t h e t e r ms & l i mi t a t i o n s s e t o u t a b o v e . F i r ms o r i n s t i t u t i o n s r e c e i vi n g t h i s r e p o r t s h o u l d e f f e c t t r a n s a ct i o n s
i n s e cu r i t i e s d i s cu s s e d i n t h e r e p o r t t h r o u g h R e se a r c h C a p i t a l U. S . A . I n c. , a Br o ke r - D e a l e r R e g i s t e r e d wi t h t h e U n i t e d S t a t e s S e c u r i t i e s a n d E xc h a n g e C o m mi s si o n ) .

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