August 5, 2012

Snapshot Last Week in Social Media

Beginning this fall, Square will begin processing all U.S. credit and debit card transactions at participating Starbucks stores across their 7,000 locations. (TechCrunch)

Facebook has unveiled a tool that helps developers advertise their wares, adding to services aimed at boosting sales from people who socialize using smartphones and tablets. (Bloomberg)

Among 5,000 Android and iPhone users in the U.S., Nielsen found that 47% of them have used a native shopping app on their phones. The analysts say that in total some 45M U.S. consumers have used shopping apps, on average, 17 times in the month. (TechCrunch)

Pinterests growth has slowed down a bit since June. From May to June Pinterests referral traffic to Shareaholics network of about 200K sites grew by 43.7%. From June to July, it increased by 15.97%. (TechCrunch)

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August 5, 2012

Other News
Facebook Courts Small Business Dollars With Easy Social Ad Campaign Creation (TechCrunch) Foursquare returns nearby friends view to app (VentureBeat) Google pays $22.5M to settle Apple Safari charges (Reuters) Gartner: HP Keeps Its PC Lead As European Market Drops 2.4%, Apple Cracks Top 5 In UK (TechCrunch) EMarketer: 26% Of U.S. Consumers Access Social Networks On Mobile Today, Facebook 85% Of That (TechCrunch) Android extends dominance in smartphones worldwide (DenverPost) Pinterest Finally Ditches Invitations, Now Lets Anyone Sign Up (TechCrunch) Facebook Subscription Payments Go Live, But Will Spotify and Netflix Pay The 30% Tax? (TechCrunch) Apple nets 72% of Chinese tablet market during Q2 2012 (Slash Gear) Facebook, Twitter? Can The Decline of Social Media Come Fast Enough? (Forbes) Zillow Q2 Earnings Beat Analyst Estimates (Slightly) With $27.8M In Revenue, $1.3M Net Income (TechCrunch)

M&A and Fund Raising News

EVE Online Maker CCP Games Raises $20M (TechCrunch) Vital Insights Gets $20M from Bregal Sagemount To Drive Auto Sales SaaS To New Markets (TechCrunch) Realtime Gets $100M To Build Whole New Era Of The Internet, AKA The Real-Time Web (TechCrunch) Pure Storage nets $40M for aggressive expansion in Europe (VentureBeat) PLUMgrid Raises $10.7M With Goal To Become The New Platform For Networking (TechCrunch)

Important Disclosures on page 8

August 5, 2012

Social Apps Highlights

Rank Application MAU (M) % Weekly Rank Developer Change MAU (M) % Weekly Change

The Ville

53.5

22.1%

Zynga

315.7

7.8%

FarmVille

40.7

17.6%

Microsoft

65.5

0.9%

CityVille

38.6

26.6%

Woobox

56.9

1.3%

Yahoo! Social Bar Texas HoldEm Poker TripAdvisor

37.8

2.7%

Electronic Arts

55.7

2.2%

35.7

0.3%

King.com

51.2

(0.4%)

34.7

0.9%

Yahoo!

48.7

1.9%

Bubble Safari

30.3

3.1%

Thunderpenny

48.4

(1.2%)

Instagram

26.5

4%

Wooga

39.2

0.2%

Spotify

26.3

(0.4%)

TripAdvisor

34.9

0.6%

10

Microsoft Live

25.3

NA

10

Spotify

26.8

NA

Source: Appdata; MAU: Monthly Active Users

Important Disclosures on page 8

August 5, 2012

Charts of the Week

Exhibit A: UK Smartphone Users and Penetration
Smartphone users (M)
45

Percentage change
60%

30

40%

15

20%

0 2010 2011 2012 2013E 2014E 2015E 2016E

0%

Source: eMarketer

Exhibit B: UK Smartphone Users As Percentage of Total Mobile Users and Population

Smartphone Users as % of Mobile Phone Users Smartphone Users as % of population
100%

75%

50%

25%

0% 2010 2011 2012 2013E 2014E 2015E 2016E

Source: eMarketer

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August 5, 2012

Exhibit C: UK Smartphone Users Who Own a Tablet

15%

12.7%

10%

5.3% 5%

0% Jan-11 Jan-12

Source: eMarketer

Important Disclosures on page 8

August 5, 2012

Snapshot Listed Social Media Companies

Company Name Market Cap ($,M) 209,955 105,218 54,818 46,719 45,792 11,091 4,805 4,112 3,448 2,241 1,977 2,159 1,682 1,548 1,583 1,117 985 744 257 228 Share price ($) 642.00 232.75 30.01 21.81 131.06 104.92 7.44 17.59 52.04 2.95 23.96 18.54 10.11 3.99 25.85 31.04 43.57 12.88 48.12 1468.65 % Weekly change 0.1% (0.9%) 1.0% 3.4% 5.0% (3.3%) 12.9% 13.4% 16.8% 8.5% 0.9% 13.3% 5.9% 6.1% 10.5% (3.7%) 10.2% (1.6%) 0.1% 4.5% Revenues ($,M) CY12E 50,156 62,832 6,569 4,907 3,557 932 2,384 2,166 548 1,226 280 259 424 178 136 590 162 154 93 186 CY13E 62,155 80,698 8,437 6,413 5,045 1,385 3,000 2,335 689 1,306 340 466 610 256 193 679 190 227 104 163 EV/Revenues CY12E 3.5x 1.6x 7.9x 7.6x 12.2x 11.2x 1.5x 1.6x 5.1x 0.9x 6.3x 6.2x 3.8x 3.5x 10.8x 1.7x 5.6x 4.4x 2.1x 0.5x CY13E 2.8x 1.2x 6.1x 5.8x 8.6x 7.6x 1.2x 1.5x 4.1x 0.9x 5.2x 3.5x 2.6x 2.4x 7.6x 1.5x 4.8x 3.0x 1.8x 0.5x

Google Inc. Amazon.com Inc. Tencent Holdings Ltd. Facebook, Inc. Baidu, Inc. LinkedIn Corporation Groupon, Inc. Gree, Inc. SINA Corporation Zynga, Inc. HomeAway, Inc. Youku Inc. Pandora Media, Inc. Renren Inc. Yelp, Inc. Shutterfly, Inc. OpenTable, Inc. Angie's List, Inc. XING AG Mixi, Inc.

MEAN MEDIAN

4.9x 4.1x

3.6x 2.9x

Source: Capital IQ

Important Disclosures on page 8

August 5, 2012

Conferences - Social Media and Mobile

Social Media Insider Summit Nevada Social Media Strategies Summit Denver August 22 - 25 August 21 - 22

Important Disclosures on page 8

August 5, 2012

Important Disclosures
Information contained herein, including but not limited to research, market valuations, calculations, estimates and other material obtained and other sources is believed to be reliable, however we do not warrant its accuracy or completeness. These materials are provided for informational purposes only and should not be used or construed as an offer to sell or a solicitation of an offer to buy any security. Past performance is not indicative of future results.

Important Disclosures on page 8