Web 2.

0 Weekly
“What Recession? Online Luxury Heats Up”
May 18, 2010

David Shore, CFA, MBA 416.860.6784

dshore@mackieresearch.com
Damian Wojcichowsky, CFA 416.860.7652

This report has been created by Analysts that are employed by Mackie Research Capital Corporation, a Canadian Investment Dealer.
For further disclosures, please see last page of this report.
www.mackieresearch.com

Copyright © 2000-2010, Mackie Research Capital Corporation, All rights reserved www.mackieresearch.com
 Key Developments (past week)
Deals (M&A, Finance) – Online Luxury – Hot Sector in a Poorer World
 Booyah (virtual world operator) raised $20 mm in Series C financing.
 Social media brand and charity promoter, SocialVibe, raised an $11.7 mm financing
round.
 Activity in the online luxury retail space headed up this week with Brandsclub (Brazilian
luxury flash retailer) in a $17 mm funding and Gilt Groupe raising $35 mm.
Financial Results/Guidance
 Fluid Music (TSX:FMN, digital music distributor) reported Q1/F10 revenue of $15.9 mm
(vs. $1.3 mm in the same period last year) and EPS of ($0.06) vs. ($0.03) in Q1/F09.
 Points International (TSX:PTS, rewards program manager) reported strong revenue
growth – up 11% Y/Y to $23.5 mm, and break-even EPS. Excluding contribution last
year from a discontinued relationship with a major customer (Delta Airlines), revenue
growth was 205% Y/Y.

2 www.mackieresearch.com
 Public Company Data

3 www.mackieresearch.com
 Aggregate Public Data
Web 2.0 Public Companies Total Median Max Min
# Companies 100 - - -
Market Cap (US$ mm) 82,162.9 67.9 36,142.4 1.2
Revenue (US$ mm) 23,048.3 59.8 3,057.7 0.0
1 Year revenue growth 5.3% 857.0% -91.4%
EBITDA as % of revenue - 13.4% 67.7% -75.0%
Net cash (US$ mm) 9,044.1 2.1 1,827.7 -670.8
TEV/Revenue - 1.9x 41.8x 0.1x
TEV/EBITDA - 8.4x 36.6x 0.8x
P/E - 16.0x 83.4x 0.0x
Relative to 52 week high -37.8% 0.0% -97.6%

Source: CapitalIQ

4 www.mackieresearch.com
5
0
5
10
15
20
25
30
Gaming

27
Social Networking

17
Media

10

7
Diversified

6
Marketing

5
Mobile

Source: CapitalIQ
3
Infrastructure

3
SMS/Voice

3
Enterprise

3
Advertising

2
Internet Retail

2
Virtual World
By Sector

2
Dating

2
Music

1
Vertical Communities

1
Collaboration

1
Podcasting

1
Learning

1
Video

1
Search

1
Payment

Financial Services 1
Public Company Distribution

0
5
10
15
20
25
30
35
40
45

United States

Canada

China

South Korea

Japan

Taiwan

Germany

Australia

United Kingdom

Hong Kong

Poland

Russia
By Country

Finland

Sweden

Malaysia

India

Italy

Switzerland

Israel
www.mackieresearch.com
 Valuation Dashboard – 1 Week
Market Cap EV/Revenue
Flat
Flat 3%
5% Rising
29%

Falling
59%
Rising
36%

Falling
68%

EV/EBITDA P/E

Flat Flat
2% Rising 0%
21%
Rising
34%

Falling
66%
Falling
77%
6 www.mackieresearch.com
7
Source: CapitalIQ
Multiple (x)

0.0x
0.5x
1.0x
1.5x
2.0x
2.5x
3.0x
3.5x
4.0x
4.5x
5.0x

# companies
3/30/2009
4/6/2009
4/13/2009
4/20/2009
4/27/2009
5/4/2009
5/11/2009
5/18/2009
5/25/2009
6/1/2009
6/8/2009
6/15/2009
6/22/2009
6/29/2009
7/6/2009
7/13/2009
Median EV/Revenue

7/20/2009
7/27/2009
8/3/2009
8/10/2009
8/17/2009
8/24/2009
8/31/2009
9/7/2009
9/14/2009
9/21/2009
9/28/2009

Median
10/5/2009
10/12/2009
10/19/2009
10/26/2009
11/2/2009
11/9/2009
11/16/2009
11/23/2009
11/30/2009
12/7/2009

Long-term average
12/14/2009
12/21/2009
12/28/2009
1/4/2010
1/11/2010
1/18/2010
1/25/2010
2/1/2010
2/8/2010
2/15/2010
2/22/2010
down second

3/1/2010
3/8/2010
consecutive week
Revenue multiples

3/15/2010
3/22/2010
3/29/2010
4/5/2010
4/12/2010
4/19/2010
4/26/2010
5/3/2010
5/10/2010
5/17/2010
373638383939393841414344444545454648494949485154545859596264646562626467687069726968677072707574757879787977788080848181

www.mackieresearch.com
8
Source: CapitalIQ
Multiple (x )

# companies
0. 0x
5. 0x
10. 0x
15. 0x
20. 0x
25. 0x

3/30/2009
4/6/2009
4/13/2009
4/20/2009
4/27/2009
5/4/2009
5/11/2009
5/18/2009
5/25/2009
6/1/2009
6/8/2009
6/15/2009
6/22/2009
6/29/2009
Median EV/EBITDA

7/6/2009
7/13/2009
7/20/2009
7/27/2009
8/3/2009
8/10/2009
8/17/2009
8/24/2009
8/31/2009
9/7/2009
9/14/2009
9/21/2009
9/28/2009

Median
10/5/2009
10/12/2009
10/19/2009
10/26/2009
11/2/2009
11/9/2009
11/16/2009
11/23/2009
11/30/2009
12/7/2009
12/14/2009

Long-term average
12/21/2009
12/28/2009
1/4/2010
1/11/2010
1/18/2010
1/25/2010
2/1/2010
2/8/2010
2/15/2010
2/22/2010
below LT average

3/1/2010
remain depressed

3/8/2010
EV/EBITDA multiples

3/15/2010
3/22/2010
3/29/2010
4/5/2010
4/12/2010
4/19/2010
4/26/2010
5/3/2010
5/10/2010
5/17/2010
20 20 21 22 23 23 22 22 23 24 23 23 23 24 26 26 26 26 26 25 26 26 28 32 29 32 34 36 37 41 39 39 37 39 40 40 38 38 41 42 41 42 42 42 42 44 43 45 43 44 49 50 49 51 52 52 50 51 49 48

www.mackieresearch.com
9
Source: CapitalIQ
Multiple (x )

# companies
0. 0x
5. 0x
10. 0x
15. 0x
20. 0x
25. 0x
30. 0x

3/30/2009
4/6/2009
4/13/2009
Median P/E

4/20/2009
4/27/2009
5/4/2009
5/11/2009
5/18/2009
5/25/2009
6/1/2009
6/8/2009
6/15/2009
6/22/2009
6/29/2009
7/6/2009
7/13/2009
7/20/2009
7/27/2009
8/3/2009
8/10/2009
8/17/2009
8/24/2009
8/31/2009
9/7/2009
9/14/2009
9/21/2009
9/28/2009

Median
10/5/2009
10/12/2009
10/19/2009
10/26/2009
11/2/2009
11/9/2009
11/16/2009
11/23/2009
11/30/2009
12/7/2009
12/14/2009

Long-term average
12/21/2009
12/28/2009
1/4/2010
1/11/2010
1/18/2010
1/25/2010
2/1/2010
2/8/2010
2/15/2010
2/22/2010
3/1/2010
3/8/2010
below LT average
P/E multiples also

3/15/2010
3/22/2010
3/29/2010
4/5/2010
4/12/2010
4/19/2010
4/26/2010
5/3/2010
5/10/2010
5/17/2010
19 20 19 18 18 19 19 19 19 20 20 18 18 19 19 20 21 24 24 25 25 25 26 28 26 30 31 32 30 32 32 33 34 36 37 37 37 37 38 39 40 38 38 38 38 36 37 33 32 31 34 34 34 34 34 34 34 34 32 36

www.mackieresearch.com
10
-
5.0
10.0
15.0
20.0
25.0

# Companies 2
Infrastructure

2
Music

1
Learning

8
Social Networking

4
Mobile

1
Vertical Communities

5
Diversified

6
Marketing

3
SMS/Voice

Gaming

20
1
Search

1
Podcasting
EV/Revenue

1
Collaboration

9
Media

3
Advertising

2
Internet Retail

3
Enterprise

1
Video

2
Dating

1
Financial Services

0
Virtual World

-
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
Average Valuation – by Sector

# Companies
2

Enterprise
1

Mobile
5

Diversified
6

Social Networking
2

Internet Retail
1

Collaboration

Gaming
13
EV/EBITDA

Media
3

Marketing
1

Dating
1

Advertising
www.mackieresearch.com
11
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
Look S mart, Ltd.
C y berplex Inc.
Actoz S oft C o. , Ltd.
G ameO n C o Ltd.

Source: CapitalIQ
J umbuck E ntertainment Limited
R ealNetwork s Inc.
G igaMedia Ltd.
T ree. C om, Inc.
O penwave S y s tems Inc.
DADA S pA
G lu Mobile, Inc.
Northgate T echnologies Limited
P oints International Ltd.
Unis erve C ommunications C orp.
C DC C orp.
AQ Interactive, Inc.
Internet G roup S A
AO L, Inc.

0.2 0.20.30.30.40.40.4 0.4 0.50.60.60.6 0.70.70.70.70.80.80.8

IAC /InterActiveC orp.
U nited O nline, Inc .
T he New Y ork T imes C ompany
C ornerWorld C orporation
T heS treet.com, Inc.
O AO R B C Information S y s tems
HanbitS oft, Inc.
NetDragon WebS oft, Inc.
EV/Revenue Ranking

infoG R O U P , Inc.
Hutchis on T elecommunications H ong
S park Network s , Inc.
O riented Media G roup B erhad
G amania Digital E ntertainment C o. , Ltd.
S NAP Interactive, Inc.
Y D O nline C orp.
0.80.8 1.0 1.0 1.0 1.2 1.2 1.3 1.3 1.4 1.4 1.4 1.4 1.5 1.5

Y nk K orea Inc.
NeuLion Incorporated
S hutterfly , Inc.
V alueC lick , Inc.
S core Media Inc.
P NI Digital Media Inc.
Modern T imes G roup Mtg AB
1.6 1.8 1.8 1.9 2.12.1

G ungHo O nline E ntertainment, Inc.

XING AG
2.22.22.2

S ohu.com Inc.
U O MO Media, Inc
is eemedia Inc.
Webz en Inc.
O pen T ex t C orp.
Wiz z ard S oftware C orporation
My riad G roup AG
NE O WIZ G ames C orporation
V elti P lc
F rogs ter Interactive P ictures AG
2.72.82.8 2.93.03.0 3.1 3.13.13.4

S K C ommunications C o. , Ltd.
T aleo C orp.
3.74.4

C hangy ou. com Limited

DigitalP os t Interactive, Inc.
revenue multiple at 41.8x
SpectrumDNA has highest

Mix i, Inc.
K ings oft C orporation Limited
WebMediaB rands Inc
H U G H E S T elematic s , Inc .
4.54.6 4.74.74.9

U nilava C orporation
Acceleriz e New Media, Inc.
5.5 5.6 5.8

Lingo Media C orporation

8.0

G ree, Inc.
Dena C o. Ltd.
8.9 9.2

T rans G aming, Inc.

F luid Mus ic C anada, Inc.
10.4

C hines e G amer International

12.2

B ey ond C ommerce, Inc.

13.8

G eoS entric O y j
MO K O . mobi Limited
15.415.5

T encent Holdings Ltd.

19.0

P aid Inc.
19.7

B right T hings plc

31.4

S pectrumDNA, Inc.
41.8

www.mackieresearch.com
12
0. 0
5. 0
10. 0
15. 0
20. 0
25. 0
30. 0
35. 0
40. 0
G ameO n C o L td.

Ac toz S oft C o. , Ltd.

1. 3 1. 6

Source: CapitalIQ
C y berplex Inc.

AO L , Inc .

2.4 2. 4
United O nline, Inc.

4. 2
T he New Y ork T imes C ompany

S ohu. c om Inc.
Hutchis on T elec ommunications H ong K ong Holdings
Ltd.
DADA S pA

5. 2 5. 3 5. 4 5. 8
NetDragon WebS oft, Inc.

C DC C orp.

S park Network s , Inc.

V alueC lick , Inc.

EV/EBITDA Ranking

Y D O nline C orp.

infoG R O UP , Inc.

C hangy ou. com L imited

6.4 6. 5 6. 6 6. 6 6. 7 6. 7 7. 0

Unis erve C ommunic ations C orp.

XING AG

G amania Digital E ntertainment C o. , L td.

P NI Digital Media Inc.

7.4 8. 1 8. 2 8. 4

G ungHo O nline E ntertainment, Inc.

8. 8

IAC /InterAc tiveC orp.

O pen T ex t C orp.
10. 1 10. 5

K ings oft C orporation L imited

11. 1

NE O WIZ G ames C orporation

S c ore Media Inc.

11. 5 12.0
at 36.6x

S hutterfly , Inc .

HanbitS oft, Inc .

G ree, Inc.
13. 2 13. 3 14. 0
Tencent leads the group

Y nk K orea Inc .
14. 2

Mix i, Inc.

V elti P lc

Modern T imes G roup Mtg AB

15. 2 15. 2 15.4

O penwave S y s tems Inc .

T heS treet. c om, Inc.

17. 0 17. 4

F rogs ter Interactive P ic tures AG

19. 5

Dena C o. L td.
20. 6

C hines e G amer International

23. 8

T aleo C orp.
27. 9

T encent H oldings L td.

36.6

www.mackieresearch.com
Excluding EV/EBITDA > 100x
13
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
Unis erve C ommunic ations C orp.

Source: CapitalIQ
5. 5
C y berplex Inc.

6.4
DADA S pA

7. 9
Y D O nline C orp.

8. 1
P/E Ranking

C hangy ou. com Limited

G ameO n C o L td.

United O nline, Inc.

AO L , Inc.

10. 1 10. 2 10. 3 12. 3

S ohu.c om Inc.

V alueC lick , Inc.

T he New Y ork T imes C ompany

14.3 15. 4 15.5

K ings oft C orporation Limited

Hutc his on T elecommunications Hong K ong Holdings
16. 4 16. 5

L td.
F rogs ter Interactive P ictures AG

NetDragon WebS oft, Inc.

22. 4 22. 9

G ree, Inc.
27.7

G amania Digital E ntertainment C o. , L td.

V elti P lc

C hines e G amer International

30. 8 30. 9 31. 3

NE O WIZ G ames C orporation

Shutterfly has the

33. 8
highest P/E at 83.4x

Mix i, Inc.
42.5

O pen T ex t C orp.

infoG R O UP , Inc .

Dena C o. L td.
45. 9 47. 2 47. 5

T enc ent Holdings L td.

48. 4

C DC C orp.
54.0

HanbitS oft, Inc.

70. 9

Ac toz S oft C o. , Ltd.

77. 9

S hutterfly , Inc.
83. 4

www.mackieresearch.com
14
Source: CapitalIQ
(U S $m)

# companies
-
10, 000
20, 000
30, 000
40, 000
50, 000
60, 000
70, 000
80, 000
90, 000
100, 000

5/25/2009
6/1/2009
6/8/2009
6/15/2009
6/22/2009
6/29/2009
7/6/2009
7/13/2009
7/20/2009
7/27/2009
8/3/2009
8/10/2009
8/17/2009
8/24/2009
8/31/2009
9/7/2009
9/14/2009
9/21/2009
9/28/2009
10/5/2009
10/12/2009
10/19/2009
10/26/2009
11/2/2009
11/9/2009
11/16/2009
11/23/2009
11/30/2009
12/7/2009
12/14/2009
12/21/2009
12/28/2009
1/4/2010
Total Market Capitalization - $80 BN

1/11/2010
1/18/2010
1/25/2010
2/1/2010
2/8/2010
2/15/2010
2/22/2010
3/1/2010
3/8/2010
3/15/2010
3/22/2010
3/29/2010
4/5/2010
4/12/2010
4/19/2010
4/26/2010
5/3/2010
5/10/2010
5/17/2010
95 96 96 96 96 96 96 96 96 96 96 96 96 96 96 95 96 96 96 96 97 97 97 97 97 98 98 99 99 99 99 99 99 99 99 99 99 99 99100100100100100100100100100100100100100

www.mackieresearch.com
15
-

# Companies
5,000.0
10,000.0
15,000.0
20,000.0
25,000.0
30,000.0
35,000.0
40,000.0
45,000.0

7
Diversified

Gaming

27
Media

10
Social Networking

17
1
Collaboration

6
Marketing

3
Enterprise

1
Search

2
Internet Retail

5
Mobile
Total Market Cap – by Sector

3
SMS/Voice

2
Music

1
Financial Services

2
Dating

3
2 Advertising

Virtual World
1

Video
over $15 bn in market cap

Vertical Communities
27 Gaming companies totaling

Payment
3

Infrastructure
1

Podcasting
1

Learning
www.mackieresearch.com
16
1,000
2,000
3,000
4,000
5,000
6,000

0
Mobile Data Corp.
BroadWebAsia Inc.
CornerWorld Corporation
UOMO Media, Inc

Source: CapitalIQ
Uniserve Communications Corp.
Oriented Media Group Berhad
Beyond Commerce, Inc.
DigitalPost Interactive, Inc.
Worlds.com Inc.
En2Go International, Inc.
Kiwibox.Com, Inc.
Sahara Media Holdings, Inc.
SpectrumDNA, Inc.
SNAP Interactive, Inc.
Bright Things plc
Kent International Holdings Inc.
Real Value Estates, Inc.
iseemedia Inc.
VOIS, Inc.
Lingo Media Corporation
MOKO.mobi Limited
Internet Group SA
Jumbuck Entertainment Limited
IAS Energy, Inc.
Northgate Technologies Limited
Wizzard Software Corporation
Accelerize New Media, Inc.
Dolphin Digital Media, Inc.
Ynk Korea Inc.
Asknet AG
NeXplore Corporation
Socialwise, Inc.
Market Cap Ranking

LookSmart, Ltd.
Multiplied Media Corporation
WebMediaBrands Inc
TransGaming, Inc.
Unilava Corporation
Glu Mobile, Inc.
GeoSentric Oyj
Cyberplex Inc.
DigitalTown, Inc.
Gravity Co., Ltd
Ngi Group Inc.
PNI Digital Media Inc.
NeuLion Incorporated
Moggle, Inc
Frogster Interactive Pictures AG
Score Media Inc.
Quepasa Corp.
DADA SpA
Spark Networks, Inc.
AQ Interactive, Inc.
HanbitSoft, Inc.
Points International Ltd.
YD Online Corp.
Tree.Com, Inc.
Actoz Soft Co., Ltd.
HUGHES Telematics, Inc.
Paid Inc.
GameOn Co Ltd.
TheStreet.com, Inc.
Fluid Music Canada, Inc.
The9 Limited
Webzen Inc.
GigaMedia Ltd.
XING AG
OAO RBC Information Systems
Myriad Group AG
Openwave Systems Inc.
CDC Corp.
Velti Plc
dominates group

Gamania Digital Entertainment Co., Ltd.

NetDragon WebSoft, Inc.
GungHo Online Entertainment, Inc.
infoGROUP, Inc.
RealNetworks Inc.
Shutterfly, Inc.
Tencent’s $36 bn market cap

United Online, Inc.

NEOWIZ Games Corporation
SK Communications Co., Ltd.
Mixi, Inc.
Kingsoft Corporation Limited
Chinese Gamer International
ValueClick, Inc.
Hutchison Telecommunications Hong Kong Holdings
Taleo Corp.
Perfect World Co., Ltd.
The New York Times Company
Changyou.com Limited
Giant Interactive Group, Inc.
Sohu.com Inc.
AOL, Inc.
IAC/InterActiveCorp.
Open Text Corp.
Gree, Inc.
Shanda Interactive Entertainment Ltd.
Modern Times Group Mtg AB
Dena Co. Ltd.
Netease.com Inc.
Tencent Holdings Ltd.
www.mackieresearch.com
 Price Performance – 1 Week
• Negative momentum for yet another
week with 62% of stocks falling over the Price Momentum
past week (following on last week’s
69% decliner figure and 62% in the
week prior to that).

Rising
30%
Falling
62%

Flat
8%

17 www.mackieresearch.com
 Average Price Performance – 1 Week, by Sector

30.0%
25.0%
Podcasting securities get
20.0% biggest boost
13.2%
11.3%
10.0%
2.3%
0.0%
-1.9% -1.9% -1.9% -2.1% -2.3% -2.5% -2.7% -3.3% -3.4%
-3.5% -4.2% -4.8%
-10.0% -6.0% -7.3% -7.3%
-12.1%
-20.0% -16.7%
-21.4%
-30.0%
Internet Retail

Infrastructure
Collaboration

Networking

Virtual World
Financial
Payment

Communities
Learning

Advertising

Music
Podcasting

Marketing

Dating

Mobile

Diversified

Enterprise

Gaming

Search
Services
Media

SMS/Voice

Video
Social
Vertical
Source: CapitalIQ

18 www.mackieresearch.com
19
-60.0%
-40.0%
-20.0%
0.0%
20.0%
40.0%
60.0%
BWBA
PWRD
2497
SHHD
WDDD

Source: CapitalIQ
3838
TSX:NLN
MBYL
OMEDIA
A052790
2121
VOIS
TSXV:MMC
CM:DA
DGLP
DB:M0C
CHIN.A
BYOC
NXPC
SPXA
WSE:IGR
NCTY
UNLA
KIWB
3765
IEE
3812
TSXV:USS
A066270
TSX:FMN
A095660
IASC.A
3888
TSXV:PN
A023770
WEBM
A052770
LOV
SNDA
TSE:2432
NTES
CYOU
TREE
ASX:JMB
RNWK
SEHK:215
TSX:PTS
TSX:SCR
Price Performance – 1 Week

777
A047080
GRVY
SOHU
SCLW
ACLZ
OPWV
KNTH
GA
NYT
QPSA
KOSE:A06
HUTC
UNTD
RVLU
700
GEO1V
STVI
DGTW
ETGI
DPDM
CWRL
MTG B
UOMO
IUSA
590057
TSCM
PAYD
O1BC
SFLY
AOL
TSE:3632
OTEX
GTSM:308
RBCI
6180
MYRN
GLUU
TLEO
FRG
GIGM
IACI
TSXV:TNG
AIM:BGT
XTRA:A5A
TSXV:LM
TSX:CX
MKB
VCLK
LOOK
WZE
VEL
www.mackieresearch.com
20
0%
20%
40%
60%
80%
100%
120%
140%

0%
500%
1000%
1500%
2000%
2500%
OAO RBC
Information DigitalTown, Inc.
Systems

Quepasa Corp. LookSmart, Ltd.

Source: CapitalIQ
Uniserve
Communications Velti Plc
Corp.

AQ Interactive, IAS Energy, Inc.

Inc.

SK
SNAP Communications
Interactive, Inc.
Co., Ltd.

6 Month
1 Month

Uniserve
Velti Plc Communications
Corp.

SK
Communications Glu Mobile, Inc.
Co., Ltd.

SNAP
Dena Co. Ltd.
Interactive, Inc.

Score Media Inc. Quepasa Corp.

Points Fluid Music

International Ltd. Canada, Inc.
Price Performance (Top 10)

0%
20%
40%
60%
80%
100%
120%
140%
160%
180%

0%
500%
1000%
1500%
2000%
2500%
3000%
3500%

OAO RBC
Information IAS Energy, Inc.
Systems

Beyond
Quepasa Corp.
Commerce, Inc.

Unilava
Velti Plc
Corporation

DigitalPost SNAP
Interactive, Inc. Interactive, Inc.

Uniserve
Communications LookSmart, Ltd.
Corp.
1 Year
3 Month

TransGaming,
Quepasa Corp.
Inc.

Fluid Music
Velti Plc
Canada, Inc.

Dena Co. Ltd. GameOn Co Ltd.

Frogster
Interactive DigitalTown, Inc.
Pictures AG
SK
Gree, Inc. Communications
Co., Ltd.
www.mackieresearch.com
21
-60.0%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%

-100.0%
-90.0%
-80.0%
-70.0%
-60.0%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
Actoz Soft
Perfect World
Co., Ltd.
Co., Ltd.

Mobile Data

Source: CapitalIQ
Cyberplex Inc. Corp.

Kiwibox.Com, Oriented Media

Inc. Group Berhad

NeuLion
DADA SpA Incorporated

AQ Interactive,
iseemedia Inc. Inc.
1 Week

6 Month
Sahara Media Worlds.com
Holdings, Inc. Inc.

UOMO Media, Sahara Media

Inc Holdings, Inc.

CornerWorld
Ngi Group Inc.
Corporation

En2Go
Perfect World
International,
Co., Ltd.
Inc.

BroadWebAsia BroadWebAsia
Inc. Inc.
-60.0%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
Price Performance (Bottom 10)

-120.0%
-100.0%
-80.0%
-60.0%
-40.0%
-20.0%
0.0%

NeuLion
Dolphin Digital
Incorporated
Media, Inc.

DADA SpA
Ynk Korea Inc.

SpectrumDNA, The9 Limited

Inc.

Mobile Data Ngi Group Inc.

Corp.

CornerWorld Worlds.com
Corporation Inc.
1 Year
1 Month

En2Go Sahara Media

International, Holdings, Inc.
Inc.

Beyond Oriented Media

Commerce, Group Berhad
Inc.

Sahara Media Mobile Data

Holdings, Inc. Corp.

BroadWebAsia BroadWebAsia
Inc. Inc.

UOMO Media, CornerWorld

Inc Corporation
www.mackieresearch.com
 Capital Market Activity (Financing, M&A)

22 www.mackieresearch.com
 Financing Activity – Current Month
Fin. Am ount (Million) T ype of financing
Month C om pany Nam e C ountr y S e ctor Acquis ition Ange l/S e e d S e rie s A S e rie s B S e rie s C Grand T otal
May-10 C ube T r e e US A Collaboration 50.0 50.0
Gilt Gr oupe US A Internet R etail 35.0 35.0
S cout L abs US A A naly tic s 20.0 20.0
Booyah US A V irtual World 20.0 20.0
Fatfoogoo A us tria V irtual G oods 10.0 10.0
Wor ldw ide w or k e r UA E V ertic al Communities 9.0 9.0
V antrix Canada Mobile 8.7 8.7
BuzzFe e d US A A ggregation 8.0 8.0
S w ipe ly US A S oc ial Commerc e 7.5 7.5
C r ite o US A A dvertis ing 7.0 7.0
Gr ock it US A V irtual World 7.0 7.0
J e lli US A Mus ic 7.0 7.0
Wor dS tre am US A S earc h 6.0 6.0
S tack Ove r flow US A V ertic al Communities 6.0 6.0
Enquis ite US A A naly tic s 5.2 5.2
Ad.ly US A A dvertis ing 5.0 5.0
He lloWalle t US A Financ ial S ervic es 3.6 3.6
T ick e tfly US A V ertic al Communities 3.0 3.0
Woozw or ld Canada V irtual World 3.0 3.0
Gr oupalia S pain S oc ial Commerc e 2.5 2.5
Ne w s y US A Media 2.0 2.0
T he Extraor dinar ie s US A Mobile 1.1 1.1
L ocalytics US A A naly tic s 0.7 0.7
Etacts US A Infras truc ture 0.7 0.7
MightyMe e ting US A Collaboration 0.3 0.3
appr upt Germany Mobile A d
May-10 T otal 89.0 4.1 33.3 19.0 82.9 228.3

23 www.mackieresearch.com
 Financing Activity – Current Month, by Sector
$ Raised # Deals

Infrastructure
Enterprise Internet Retail
Advertising Media 3% 3% 7%
Financial Collaboration
Analytics 6% Services 3%
7%
7% 3%
Search
3%
Virtual World Music
8% 3% Virtual World
Aggregation 13%
3%

Other Gaming
3%
51%

Collaboration Mobile
14% 7% Analytics
10%
Virtual Goods
3%

Social
Advertising
Commerce
Internet Retail Vertical 10%
7%
14% Communities
10%

24 www.mackieresearch.com
 Financing Activity

900.0 18.0
$513 mm (ex-DST) with $10.7 16.6

800.0
mm average deal size 16.0

700.0 14.0
12.5 12.2
600.0 12.0
10.1
500.0 9.1 10.0
(US$m)

(US$m)
8.9
8.2
400.0 8.0
6.6 6.6
6.2
300.0 5.5 5.3 6.0
4.6

200.0 4.0

100.0 2.0

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

*May-09 includes $200m FB investment

Dec-09 includes $180m Zynga investment
Total Average
Apr-10 includes $300m DST investment

25 www.mackieresearch.com
26
(US$m)

0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0

# companies
1
Diversified

8
Mobile

4
Collaboration

8
Gaming
Crowdsourced

6
Content
Social

6
Commerce

6
Media

9
Video

Advertising

16
Social

10
Networks

4
Internet Retail

Analytics

10
Financial

7
Services

6
Virtual World
Vertical

9
Communities

3
Mobile Ad

2
Widget

6
Search
Mobile

2
Payment
3 Enterprise
Location-
4

based SNS
Online
1

Learning
2

Music
Advertising has most
deals in last 3 months

Virtual Goods
3

Travel
2

Infrastructure
1

Aggregation
2

Blog
1

Classified
1
Capital Market Activity Ranking – by Sector, last three months

Micromedia
1

Online Dating
1

Microblog
www.mackieresearch.com
27
(US$ mm)

0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
Jan-08

Feb-08

Mar-08

Apr-08

May-08

Jun-08

Jul-08

Aug-08

Sep-08

Oct-08

Nov-08

Social Networks
Dec-08

Jan-09

Gaming
Feb-09

Mar-09
$ Raised

Apr-09

Advertising
May-09

Jun-09

Jul-09

Virtual World
Aug-09

Sep-09

Video
Oct-09

Nov-09

Dec-09

Jan-10

Feb-10

Mar-10

Apr-10

May-10
Top 5 Sectors (2008-present)

(# Deals)
0
5
10
15
20
25
30

Jan-08

Feb-08

Mar-08

Apr-08

May-08

Jun-08

Jul-08

Aug-08

Sep-08

Oct-08

Nov-08
Social Networks

Dec-08

Jan-09

Feb-09
Advertising

Mar-09

Apr-09
Gaming

May-09
# Deals

Jun-09

Jul-09
Virtual World

Aug-09

Sep-09
Video

Oct-09

Nov-09

Dec-09

Jan-10
Top 5 sectors average $155m & 14 deals per month (aggregate)

Feb-10

Mar-10

Apr-10

May-10
www.mackieresearch.com
 Upcoming Events/Earnings
Company Date Time Quarter Conf Call Details
Giant Interactive Group, Inc. (NYSE:GA) 17-May-10 9:00 PM (EST) Q1/10 1-866-804-6921
Wizzard Softw are Corporation (AMEX:WZE) 18-May-10 1:00 PM (EST) Q1/10 1-877-407-8033
Netease.com Inc. (NasdaqGS:NTES) 19-May-10 9:00 PM (EST) Q1/10 877-941-2069

Source: CapitalIQ

28 www.mackieresearch.com
 Public Company Listing Trading C urrent US $ Market
C ompany Name Tic ker E xc hange C urrenc y HQ P rice C ap (mm) E mployees
Accelerize New Media , Inc. AC L Z OT C B B US D U nited S ta tes 1 16. 6 10
Actoz S oft C o. , L td. A052790 K OS E KRW S outh K orea 11, 100 84. 8 NA
AO L , Inc. AO L NY S E US D U nited S ta tes 24 2, 554. 9 6, 700
AQ Interactive, Inc. 3838 TS E JPY J a pa n 122, 500 72. 3 NA
As knet AG XT R A: A5A XT R A E UR G erma ny 4 22. 3 NA
B eyond C ommerce, Inc. B Y OC OT C B B US D U nited S ta tes 0 4. 3 NA
B right T hings plc AIM: B G T AIM GBP U nited K ingdom 0 6. 4 9
B roa dW ebAs ia Inc. BWBA OT C P K US D U nited S ta tes 0 1. 7 46
C DC C orp. C HIN. A Nas daqG S US D H ong K ong 2 244. 2 NA
C ha ngyou. com L imited C Y OU Nas daqG S US D C hina 29 1, 489. 8 1, 308
C hines e G a mer Interna tional G T S M: 3083 GTS M TWD T a iwa n 344 925. 3 NA
C ornerW orld C orpora tion CWR L OT C B B US D U nited S ta tes 0 1. 9 16
C yberplex Inc. T S X: C X TS X C AD C anada 1 46. 1 NA
DADA S pA C M: DA CM E UR Italy 3 67. 0 NA
Dena C o. L td. T S E : 2432 TS E JPY J a pa n 792, 000 4, 079. 9 NA
Digita lP os t Intera ctive, Inc. DG L P OT C B B US D U nited S ta tes 0 4. 5 6
Digita lT own, Inc. DG T W OT C B B US D U nited S ta tes 2 48. 0 3
Dolphin Digita l Media, Inc. DP DM OT C B B US D U nited S ta tes 0 17. 0 NA
E n2G o Internationa l, Inc. E TGI OT C B B US D U nited S ta tes 0 4. 8 NA
F luid Mus ic C anada , Inc. T S X: F MN TS X C AD U nited S ta tes 2 112. 4 NA
F rogs ter Intera ctive P ictures AG FR G XT R A E UR G erma ny 19 59. 6 NA
G a ma nia Digital E nterta inment C o. , L td. 6180 GTS M TWD T a iwa n 52 253. 8 NA
G a meO n C o L td. 3812 TS E JPY J a pa n 87, 000 94. 0 NA
G eoS entric O yj G E O 1V HL S E E UR F inla nd 0 44. 2 120
G iant Intera ctive G roup, Inc. GA NY S E US D C hina 7 1, 644. 4 NA
G iga Media L td. G IG M Nas daqG S US D T a iwa n 2 134. 7 751
G lu Mobile, Inc. G L UU Nas daqG M US D U nited S ta tes 1 40. 4 479
G ra vity C o. , L td GR VY Nas daqG M US D S outh K orea 2 51. 4 469
G ree, Inc. T S E : 3632 TS E JPY J a pa n 5, 590 2, 743. 0 NA
G ungHo O nline E nterta inment, Inc. 3765 OS E JPY J a pa n 230, 000 286. 3 NA
H anbitS oft, Inc. A047080 K OS E KRW S outh K orea 3, 935 74. 7 NA
H UG HE S T elematics , Inc. HUT C OT C B B US D U nited S ta tes 3 85. 2 276
H utchis on T elecommunications Hong K ong HS E HK : 215 S E HK HK D H ong K ong 2 987. 4 1, 732
IAC /InterActiveC orp. IAC I Nas daqG S US D U nited S ta tes 23 2, 561. 5 3, 200
IAS E nergy, Inc. IAS C . A OT C P K US D C anada 0 11. 3 NA
infoG R O UP , Inc. IUS A Nas daqG S US D U nited S ta tes 8 461. 9 3, 146
Internet G roup S A W S E : IG R WSE P LN P oland 1 9. 5 NA

29 www.mackieresearch.com
 Public Company Listing cont.
Trading C urrent US $ Market
C ompany Name Tic ker E xc hange C urrenc y HQ P ric e C ap (mm) E mployees
is eemedia Inc. IE E T S XV C AD C ana da 0. 11 7. 0 79
J umbuck E ntertainment L imited AS X: J MB AS X AUD Aus tralia 0. 24 10. 0 NA
K ent International Holdings Inc. K NT H OT C P K US D U nited S tates 1. 80 6. 4 NA
K ings oft C orporation L imited 3888 S E HK HK D C hina 5. 54 773.6 6
K iwibox. C om, Inc. K IW B OT C B B US D U nited S tates 0. 01 4. 9 NA
L ingo Media C orporation T S XV :L M T S XV C AD C ana da 0. 69 8. 3 65
L ookS mart, L td. LOOK Nas daqG M US D U nited S tates 1. 80 30. 9 NA
Mixi, Inc. 2121 TSE JPY J apa n 457,000. 00 766.4 NA
Mobile Data C orp. MB Y L OT C B B US D U nited S tates 0. 05 1. 2 2,936
Modern T imes G roup Mtg AB MT G B OM SEK S weden 415. 10 3, 513.0 2
Moggle, Inc DB : M0C DB E UR U nited S tates 1. 00 57. 5 NA
MO K O . mobi L imited MK B AS X AUD Aus tralia 0. 08 8. 3 NA
Multiplied Media C orporation T S XV :MMC T S XV C AD C ana da 0. 15 36. 1 405
Myriad G roup AG MY R N SWX C HF S witzerland 4. 14 176.8 NA
NE O W IZ G ames C orporation A095660 K OS E KRW S outh K orea 36,750. 00 672.0 NA
NetDragon W ebS oft, Inc. 777 S E HK HK D C hina 3. 79 256.8 NA
Netea s e. com Inc. NT E S Nas daqG S US D C hina 32. 15 4, 164.1 224
NeuL ion Incorporated T S X: NL N TSX C AD C ana da 0. 50 56. 2 NA
NeXplore C orpora tion NXP C OT C P K US D U nited S tates 0. 45 25. 1 NA
Ngi G roup Inc. 2497 TSE JPY J apa n 38,750. 00 52. 1 160
Northgate T echnologies L imited 590057 BSE INR India 17. 00 13. 0 2,523
O AO R B C Information S ys tems R BCI MIC E X R UB R us s ia 39. 51 174.4 3,700
O pen T ext C orp. OT E X Nas daqG S US D C ana da 45. 22 2, 567.6 590
O penwave S ys tems Inc. OP W V Nas daqG S US D U nited S tates 2. 35 197.1 NA
O riented Media G roup B erhad O ME DIA K LS E MY R Malays ia 0. 10 4. 2 20
P aid Inc. P AY D OT C B B US D U nited S tates 0. 35 93. 6 NA
P erfect W orld C o., L td. PWRD Nas daqG S US D C hina 24. 71 1, 231.2 NA
P NI Digital Media Inc. T S XV :P N T S XV C AD C ana da 1. 70 55. 5 91
P oints Internationa l L td. T S X: P T S TSX C AD C ana da 0. 54 77. 9 71
Q uepas a C orp. QP S A OT C B B US D U nited S tates 4. 95 64. 2 NA
R ea l V a lue E s ta tes , Inc. R V LU OT C B B US D Is rael 1. 03 6. 6 1,754
R ea lNetworks Inc. R NW K Nas daqG S US D U nited S tates 3. 94 532.9 NA
S ahara Media Holdings , Inc. S HHD OT C B B US D U nited S tates 0. 16 5. 4 220
S core Media Inc. T S X: S C R TSX C AD C ana da 0. 81 63. 3 NA
S ha nda Interactive E ntertainment L td. S NDA Nas daqG S US D C hina 42. 43 2, 853.6 519
S hutterfly, Inc. S FLY Nas daqG S US D U nited S tates 22. 65 608.3 NA

30 www.mackieresearch.com
 Public Company Listing cont.
Trading C urrent US $ Market
C ompany Name Tic ker E xc hange C urrenc y HQ P rice C ap (mm) E mployees
S K C ommunications C o. , L td. A066270 K OS E KRW S outh K orea 18, 550. 00 675. 5 15
S NAP Interactive, Inc. STVI OT C B B US D U nited S ta tes 0. 19 6. 3 NA
S ocialwis e, Inc. S C LW OT C B B US D U nited S ta tes 0. 53 26. 5 3, 997
S ohu. com Inc. S OHU Nas daqG S US D C hina 44. 89 1, 697. 7 155
S pa rk Networks , Inc. LOV AME X US D U nited S ta tes 3. 34 68. 8 NA
S pectrumDNA, Inc. S P XA OT C B B US D U nited S ta tes 0. 09 6. 2 916
T a leo C orp. T LE O Nas daqG M US D U nited S ta tes 25. 21 1, 002. 3 7, 515
T encent Holdings L td. 700 S E HK HK D C hina 154. 20 36, 142. 4 7, 665
T he New Y ork T imes C ompany NY T NY S E US D U nited S ta tes 9. 26 1, 348. 3 1, 010
T he9 L imited NC T Y Nas daqG S US D C hina 4. 84 123. 5 274
T heS treet. com, Inc. TS CM Nas daqG M US D U nited S ta tes 3. 26 102. 9 28
T ra ns G a ming, Inc. T S XV : T NG T S XV C AD C anada 0. 69 39. 5 700
T ree. C om, Inc. TR EE Nas daqG M US D U nited S ta tes 7. 21 80. 8 39
U nila va C orpora tion UNL A OT C B B US D U nited S ta tes 0. 40 40. 0 NA
U nis erve C ommunica tions C orp. T S XV : US S T S XV C AD C anada 0. 12 3. 3 1, 699
U nited O nline, Inc. UNT D Nas daqG S US D U nited S ta tes 7. 22 629. 1 NA
U O MO Media, Inc UO MO OT C B B US D C anada 0. 03 2. 2 1, 086
V alueC lick, Inc. V C LK Nas daqG S US D U nited S ta tes 11. 41 927. 9 450
V elti P lc VE L AIM GBP U nited K ingdom 4. 60 252. 8 2
V O IS , Inc. V O IS OT C B B US D U nited S ta tes 0. 01 8. 0 83
W ebMedia B ra nds Inc WEBM Nas daqG S US D U nited S ta tes 1. 00 37. 4 NA
W ebzen Inc. K O S E : A069080 K OS E KRW S outh K orea 12, 550. 00 129. 0 80
W izza rd S oftwa re C orpora tion W ZE AME X US D U nited S ta tes 0. 25 14. 5 NA
W orlds . com Inc. W DDD OT C B B US D U nited S ta tes 0. 08 4. 6 NA
XING AG O 1B C XT R A E UR G erma ny 27. 03 171. 8 NA
Y D O nline C orp. A052770 K OS E KRW S outh K orea 6, 100. 00 79. 4 NA
Y nk K orea Inc. A023770 K OS E KRW S outh K orea 2, 800. 00 19. 4 -

31 www.mackieresearch.com
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