SOFTWARE & SERVICES 15 SEPTEMBER 2009

WEB 2.O WEEKLY DAVID SHORE, CFA, MBA 416.860.6784

david.shore@researchcapital.com

MINTY FRESH: FROM $50,000 TO $170,000,000 IN THREE YEARS

INT UIT A CQ UI R E S M INT . COM F O R $17 0,0 00, 000 – O R O V E R $10 0 P ER U NI QU E
Exactly three years after winning the $50,000 grand prize at TechCrunch40, Mint.com announced that it was being
acquired by Intuit for $170 million. The deal values Mint’s Unique Visitors (UV) at a lofty $113 per UV, well ahead of
recent acquisitions. For example, Facebook acquired FriendFeed for a rumoured $47.5 million in August – or under
$50 per UV, while Club Penguin, Bebo, and People Media were done in the $20-$30/UV range.

E s timated Value per Unique Vis itor

$120
$113

$100

$80
($)

$60

$48

$40

$29

$22
$20
$20

$7
$5
$2
$-
Mint. com F riendF eed C lub P enguin B ebo P eople Media S kype S tumbleUpon F riends R eunited

S ep-09 Aug-09 Aug-07 Ma r-08 J ul-09 S ep-09 May-09 Aug-09

September remains slow financing month: Only eight financing transactions have been announced in September,
with the largest transaction thus far the $9 million financing for InXpo (Virtual W orlds). The total for September so far
is just $37.4 million, averaging $4.7 million per financing. Total capital raised in August was $208.5 million, averaging
$7.7 million (27 deals); July on 35 transactions was $191.4 million, averaging $5.5 million; and June (42 deals) was
$204.7 million (averaging $4.9 million).

A strong price performance week: Twenty-eight of the companies in our universe had positive stock price
performances over the past week (for stocks with prices greater than $1) (Figure 6), with only seven companies
showing negative returns on the week. After the biggest rise last week, DigitalTown (OTCBB:DGTW ) fell the most
with a -14.3% return, while Quepasa (OTCBB:QPSA) had the best return, rising 25% in the week.

This report has been created b y Anal ysts that are emplo yed b y Research Capital Corporation, a Canadian Investment Dealer.
For further disclosures, please see last page of this report.
w w w . r e s e a rc h c a p i t a l . c o m
T o ro n t o 4 1 6 . 8 6 0 . 7 6 0 0 Montreal 514.399.1500 Vancouver 604.662.1800 Calgary 403.265.7400 Regina 306.566.7550
 Page 2

THE WEB 2.0 UNIVERSE

Ninety-one public Web 2.0 companies: Our W eb 2.0 universe contains 91 companies, with a combined market cap of
~$67 billion (Figure 1). The median market cap for the group is ~$45 million, with average trailing revenue of ~$160
million (median $53 million). The companies are also generally profitable, with a median EBITDA margin of 12.5%. On a
valuation basis, the overall average is 5.2x trailing revenue (median 1.7x) and 12.7x trailing EBITDA (median 10.1x).
Nineteen of the companies have more than 500 employees.
C omparable C ompany Analys is > Web 2.0
Trading C urrent US D Market US D L TM Total US D L TM Total E B ITDA TE V/L TM TE V/L TM
C ompany Name L TM as of Ticker E xc hange C urrency HQ P ric e C ap ($m) R ev ($m) E B ITDA ($m) % R evenue E B ITDA E mployees
Accelerize New Media, Inc. 6/30/2009 AC LZ OT C B B US D U nited S tates 0. 60 16. 8 4. 4 (3.7) -83. 3% 4.9x - 11
Actoz S oft C o. , Ltd. 6/30/2009 A052790 K OS E KRW S outh K orea 18, 100 127.9 106. 3 25. 3 23. 8% 0.9x 3. 8x NA
AQ Interactive, Inc. 6/30/2009 3838 TS E JPY J apa n 51, 600 31. 0 65.4 (1.9) -2.9% 0.1x - NA
As s ocia ted Media Holdings Inc. 6/30/2007 AS MH OT C P K US D U nited S tates 0. 01 0.6 0. 1 (2.3) NM 15. 6x - 3
B igs tring C orp. 6/30/2009 BS GC OT C B B US D U nited S tates 0. 02 1.2 0. 1 (1.5) NM 35. 1x - 4
B eta wave C orpora tion 6/30/2009 B W AV OT C B B US D U nited S tates 0. 07 2.0 9. 4 (12. 6) NM - - 51
B eyond C ommerce, Inc. 6/30/2009 B Y OC OT C B B US D U nited S tates 0. 20 9.3 11.7 (12. 8) NM 1.3x - 101
B right T hings plc 9/30/2008 AIM: B G T AIM GBP U nited K ingdom 0. 01 6.2 0. 3 (1.9) NM 22. 4x - 9
B roa dW ebAs ia Inc. 9/30/2008 BWBA OT C P K US D U nited S tates 0. 23 19. 5 0. 0 (4.6) NM - - 46
C DC C orp. 6/30/2009 C HIN.A Na s daqG S US D Hong K ong 2. 77 293.6 361. 6 25. 1 6.9% 0.8x 11.5x 2, 227
C hangyou. com Limited 6/30/2009 C Y OU Na s daqG S US D C hina 40.54 2, 229.7 241. 2 147. 2 61. 0% 8.1x 13.3x 628
C hina G ateway C orporation 9/30/2008 CGWY OT C P K US D U nited S tates 0. 02 0.3 6. 7 (6.6) -98. 9% 0.0x - 37
C hines e G amer Interna tional 3/31/2009 G T S M: 3083 GTS M TWD T a iwan 440 1, 137.4 56.8 31. 8 56. 0% 18. 9x 33.7x NA
C LIC K E R Inc. 5/31/2009 C LK Z OT C B B US D U nited S tates 0. 01 0.4 2. 5 (1.2) -45. 8% 0.2x - 22
C ornerW orld C orporation 4/30/2009 CWR L OT C B B US D U nited S tates 0. 06 5.7 3. 9 NM NM 4.1x - 16
C yberplex Inc. 6/30/2009 T S X: C X TS X C AD C a nada 1 77. 1 91.0 9.8 10. 8% 0.6x 5. 8x NA
DADA S pA 6/30/2009 C M: DA CM E UR Italy 7. 11 168.2 241. 1 31. 7 13. 1% 0.9x 6. 9x NA
DXN Holdings B hd 5/31/2009 DX N K LS E MY R Malays ia 0. 58 38. 0 76.8 11. 1 14. 4% 0.7x 4. 8x NA
Dibz International, Inc. NA DIB Z OT C P K US D U nited S tates 0. 00 0.0 NA NM NM - - NA
DigitalP os t Interactive, Inc. 6/30/2009 DG LP OT C B B US D U nited S tates 0. 06 4.2 1. 0 (1.4) NM 6.3x - 7
DigitalT own, Inc. 5/31/2009 DG T W OT C B B US D U nited S tates 1. 50 41. 0 NM (2.5) NM - - 3
Dolphin Digital Media, Inc. 6/30/2009 DP DM OT C B B US D U nited S tates 0. 38 20. 2 0. 6 (3.4) NM 36. 3x - NA
E olith C o. Ltd. 12/31/2008 A041060 K OS E KRW S outh K orea 855 50. 7 15.1 (3.6) -23. 6% 3.5x - NA
E xtens ions , Inc. 6/30/2009 E XTI OT C P K US D U nited S tates 0. 18 8.0 NM NM NM - - 2
F luid Mus ic C anada, Inc. 6/30/2009 T S X: F MN TS X C AD U nited S tates 1. 42 69. 4 5. 3 (5.1) -95. 2% 11. 6x - NA
F rogs ter Intera ctive P ictures AG 12/31/2008 FR G XT R A E UR G ermany 18.78 69. 2 3. 3 (6.4) NM 20. 1x - NA
G ama nia Digital E nterta inment C o. , Ltd. 6/30/2009 6180 GTS M TWD T a iwan 48.05 224.3 140. 2 25. 1 17. 9% 1.4x 8. 0x NA
G ameO n C o L td. 6/30/2009 3812 TS E JPY J apa n 101, 300 108.3 81.0 19. 8 24. 5% 0.4x 1. 7x NA
G eoS entric O yj 6/30/2009 G E O 1V HL S E E UR F inla nd 0. 05 65. 5 5. 4 (17. 4) NM 12. 1x - 115
G iant Interactive G roup, Inc. 6/30/2009 GA NY S E US D C hina 8 1, 705.1 198. 5 124. 1 62. 5% - - 1, 570
G iga Media Ltd. 3/31/2009 G IG M Na s daqG S US D T a iwan 4. 83 263.3 183. 6 NM NM 1.0x - 751
G ravity C o., Ltd 6/30/2009 GR VY Na s daqG M US D S outh K orea 1. 71 47. 5 48.0 16. 3 33. 9% - - 469
G ree, Inc. 6/30/2009 T S E :3632 TS E JPY J apa n 8, 700 2, 153.5 154. 3 92. 7 60. 1% 13. 2x 22.0x NA
G ungHo O nline E ntertainment, Inc. 6/30/2009 3765 OS E JPY J apa n 258, 900 328.0 118. 2 26. 3 22. 2% 2.5x 11.2x NA
HanbitS oft, Inc. 6/30/2009 A047080 K OS E KRW S outh K orea 4, 025 72. 2 59.4 1.4 2.3% 1.0x 42.7x NA
IAC /InterActiveC orp. 6/30/2009 IAC I Na s daqG S US D U nited S tates 19.40 2, 568.6 1, 392. 3 52. 7 3.8% 0.6x 15.7x 3, 200
IAS E nergy, Inc. 1/31/2009 IAS A.E OT C B B US D C a nada 0. 15 10. 5 0. 0 (0.8) NM - - NA
is eemedia Inc. 3/31/2009 IE E T S XV C AD C a nada 0. 06 2.9 1. 6 (5.1) NM 1.2x - NA
J umbuck E ntertainment Limited 6/30/2009 AS X: J MB AS X AU D Aus tralia 0. 37 15. 6 16.6 7.1 42. 8% 0.6x 1. 3x 79
K AB Dis tribution Inc. 6/30/2009 T S X: K AB TS X C AD C a nada 1 84. 8 68.8 4.0 5.8% - - NA
K ings oft C o. Ltd. 6/30/2009 3888 S E HK HK D C hina 9 1, 224.3 139. 1 61. 4 44. 2% 8.9x 20.2x 2, 271
Lingo Media C orpora tion 6/30/2009 T S XV : LM T S XV C AD C a nada 1. 00 11. 6 1. 2 (1.9) NM 8.8x - NA
LiveW orld Inc. 6/30/2009 LV W D OT C P K US D U nited S tates 0. 04 1.2 10.6 (0.1) -1.2% 0.0x - NA
LookS mart, Ltd. 6/30/2009 LO O K Na s daqG M US D U nited S tates 1. 17 20. 0 56.8 (4.4) -7.8% - - 90
Magnitude Information S ys tems Inc. 6/30/2009 MAG Y OT C B B US D U nited S tates 0. 01 4.2 0. 1 (2.5) NM - - 14
Mixi, Inc. 6/30/2009 2121 TS E JPY J apa n 556000.00 947.4 135. 3 45. 7 33. 8% 6.1x 18.1x NA
Modern T imes G roup Mtg AB 6/30/2009 MT G B OM SEK S weden 289.50 2, 725.4 1, 961. 1 301. 3 15. 4% 1.7x 10.9x 2, 969
MO K O .mobi Limited 12/31/2008 MK B AS X AU D Aus tralia 0. 07 5.3 1. 3 (2.6) NM 3.2x - NA
Myriad G roup AG 12/31/2008 MY R N SWX C HF S witzerland 4. 44 91. 2 40.0 0.8 1.9% 2.4x - 405
NE O W IZ G ames C orporation 12/31/2008 A095660 K OS E KRW S outh K orea 35700. 00 615.4 202. 8 54. 4 26. 8% 3.0x 11.1x NA
NetDragon W ebS oft, Inc. 6/30/2009 777 S E HK HK D C hina 6 394.2 89.3 25. 7 28. 7% 2.9x 9. 9x 2, 426
Neteas e.com Inc. 6/30/2009 NT E S Na s daqG S US D C hina 42.57 5, 509.7 472. 3 297. 4 63. 0% - - 3, 109
NeuLion Incorporated 6/30/2009 T S X: NLN TS X C AD C a nada 1. 03 109.5 21.5 (13. 0) -60. 3% 4.6x - 237
NeXplore C orporation 6/30/2008 NX P C OT C P K US D U nited S tates 1 33. 5 0. 7 (6.2) NM - - NA
Ngi G roup Inc. 6/30/2009 2497 TS E JPY J apa n 29250. 00 40. 1 92.0 6.8 7.4% - - NA
Northgate T echnologies Limited 6/30/2009 590057 BSE INR India 43.15 31. 1 82.1 (41. 1) -50. 0% 0.4x - NA
O pen T ext C orp. 6/30/2009 OT E X Na s daqG S US D C a nada 35.68 2, 003.4 785. 7 205. 1 26. 1% 2.6x 9. 9x 3, 411
O penwave S ys tems Inc. 6/30/2009 OP W V Na s daqG S US D U nited S tates 2. 87 239.6 191. 7 5.3 2.8% 0.7x 24.6x NA
P erfect W orld C o. , Ltd. 6/30/2009 PWR D Na s daqG S US D C hina 43.42 2, 135.5 255. 6 142. 2 55. 6% 0.7x 1. 2x 2, 096
P NI Digital Media Inc. 6/30/2009 T S XV : P N T S XV C AD C a nada 1. 88 59. 9 21.3 2.3 11. 0% 2.7x 24.7x NA
Q uepa s a C orp. 6/30/2009 QP S A OT C B B US D U nited S tates 2 22. 3 0. 2 (10. 6) NM - - 74
O AO R B C Information S ys tems 12/31/2007 R BCI R TS US D R us s ia 1. 05 145.7 154. 7 20. 2 13. 1% 0.0x 0. 2x NA
S handa Intera ctive E ntertainment Ltd. 6/30/2009 S NDA Na s daqG S US D C hina 51.42 3, 433.2 628. 9 296. 6 47. 2% - - 3, 124
S hutterfly, Inc. 6/30/2009 S F LY Na s daqG S US D U nited S tates 14.86 378.3 218. 6 27. 3 12. 5% 1.4x 11.5x 514
S K C ommunications C o. , Ltd. 12/31/2008 A066270 K OS E KRW S outh K orea 9150.00 314.0 188. 5 12. 3 6.5% 1.7x 25.6x NA
S NAP Interactive, Inc. 6/30/2009 S TVI OT C B B US D U nited S tates 0 4.3 3. 5 0.9 27. 0% 0.8x 2. 9x 11
S NM G loba l Holdings 9/30/2008 S NMN OT C P K US D U nited S tates 0. 01 0.0 2. 0 (0.7) -34. 8% 1.1x - 33
S ocial Media V enures , Inc. 12/31/2008 S MV I OT C P K US D U nited S tates 0 0.0 0. 1 (0.1) -60. 6% 4.5x - NA
S ocialwis e, Inc. 6/30/2009 S C LW OT C B B US D U nited S tates 0. 49 21. 7 0. 0 (5.6) NM - - NA
S ohu. com Inc. 6/30/2009 S O HU Na s daqG S US D C hina 65.84 2, 523.9 485. 1 209. 6 43. 2% 4.2x 9. 6x 3, 197
S park Networks , Inc. 6/30/2009 LO V AME X US D U nited S tates 2 44. 9 50.5 10. 8 21. 3% 0.8x 4. 0x 183
S pectrumDNA, Inc. 6/30/2009 S P XA OT C B B US D U nited S tates 0 10. 7 0. 1 (2.5) NM - - 7
T encent Holdings L td. 6/30/2009 700 S E HK HK D C hina 126 29, 516. 3 1, 391. 3 680. 2 48. 9% 23. 3x 47.6x 6, 421
T he P arent C ompa ny 8/2/2008 K IDS .Q OT C P K US D U nited S tates 0. 02 0.4 112. 0 (13. 5) -12. 0% 0.2x - 347
T he9 Limited 12/31/2008 NC T Y Na s daqG S US D C hina 8. 17 205.0 250. 5 85. 4 34. 1% - - 1, 626
T heS treet. com, Inc. 3/31/2009 TS CM Na s daqG M US D U nited S tates 2. 65 81. 1 67.0 1.9 2.9% 0.2x 8. 5x 310
T ota l S port O nline AS 3/31/2006 T OS O O T C NO NOK Norway 0. 03 0.1 2. 3 (1.1) -50. 6% 4.6x - 16
T ree.C om, Inc. 6/30/2009 TR E E Na s daqG M US D U nited S tates 7. 83 84. 6 216. 6 (0.7) -0.3% 0.4x - 700
U nis erve C ommunications C orp. 2/28/2009 T S XV : U S S T S XV C AD C a nada 0. 05 1.0 24.3 0.1 0.2% 0.2x - NA
U nited O nline Inc. 6/30/2009 U NT D Na s daqG S US D U nited S tates 7. 80 653.9 949. 8 203. 2 21. 4% 1.0x 4. 5x 1, 469
U OMO Media, Inc 4/30/2009 U O MO OT C B B US D C a nada 0 11. 7 0. 9 (0.5) -53. 2% 14. 1x - NA
V alueC lick Inc. 6/30/2009 V C LK Na s daqG S US D U nited S tates 11 975.2 563. 6 99. 0 17. 6% 1.5x 8. 5x 1, 189
V OIS , Inc. 6/30/2009 V O IS OT C B B US D U nited S tates 0 3.3 0. 0 (1.0) NM - - 4
W ebzen Inc. 6/30/2009 W ZE N Na s daqG M US D S outh K orea 2. 94 34. 9 22.7 2.2 9.9% - - 328
W izzard S oftware C orpora tion 6/30/2009 W ZE AME X US D U nited S tates 0. 55 27. 8 5. 3 (4.5) -84. 9% 5.4x - 110
W orlds . com Inc. 6/30/2009 W DDD OT C B B US D U nited S tates 0. 11 5.7 0. 1 (0.7) NM - - 1
W oozyF ly, Inc. 6/30/2009 W ZY F OT C B B US D U nited S tates 0. 15 2.6 NM NM NM - - NA
W ynds torm C orporation NA W Y ND OT C P K US D U nited S tates 0. 10 1.8 NA NM NM - - NA
XING AG 6/30/2009 O 1B C XT R A E UR G ermany 32.85 252.7 58.6 16. 9 28. 8% 3.4x 11.9x 246
Y eda ngO nline C orp. 12/31/2007 A052770 K OS E KRW S outh K orea 9, 310 114.3 56.1 12. 1 21. 6% 2.2x 10.2x NA
Y nk K orea Inc. 12/31/2008 A023770 K OS E KRW S outh K orea 4, 240 18. 5 11.6 1.2 10. 5% - - NA
High 29, 516. 3 1,961. 1 680.2 63. 0% 36. 3x 47.6x 6,421
Low 0.0 0.0 -41.1 -98. 9% - - 1
Average 738.1 160.4 38.5 6.0% 5.2x 12.7x 890
Median 44. 9 53.3 1. 2 12. 5% 1.7x 10.1x 210

Figure 1. Web 2.0 Universe Summary

Source. Capital IQ
 Page 3

C A P I T A L M A R K E T S A C T I V I T Y (M & A A N D F I N A N C I N G )
September remains slow financing month: Only eight financing transactions have been announced in September, with
the largest transaction thus far the $9 million financing for InXpo (Virtual W orlds). The total for September so far is just
$37.4 million, averaging $4.7 million per financing. Total capital raised in August was $208.5 million, averaging $7.7 million
(27 deals); July on 35 transactions was $191.4 million, averaging $5.5 million; and June (42 deals) was $204.7 million
(averaging $4.9 million).

Financing Activity Last Twelve Months

400.0 18.0

16.2

16.0
350.0
14.6

14.0
300.0

12.0
250.0

9.7
10.0
(US$m)

(US$m)
200.0
7.7
8.0
7.0 7.0 7.1
6.5 6.6
150.0 6.2
5.5 6.0
4.9
4.7
100.0
4.0

50.0
2.0

0.0 0.0
Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09

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

Figure 2. Financings, Last Twelve Months

Source. Company reports
 (US$m)

0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0
200.0
Skype
Mint
People Media

Source. Company reports

Super Rewards
Turbine
Friends Reunited
AdLink Internet Media
Pandora Media
Smith & Tinker
NowPublic
iLike
xoopit
MediaMath
Kontera Ltd.

Figure 3. Capital Market Activity, Last Three Months

Ning
RichRelevance
QuickPlay Media
Traffiq
Causes
Figures 23 and 24 (at end of note).

InXpo
Edo Interactive
Bill.com
Outspark
Jobvite
ConnectEdu
Riot Games
Acquia, Inc
SBNation
InnoCentive
OneRiot
Balihoo
Metaversum
iMemories
HiveLive
Invodo
Boxee
Polyvore
Fanbase
MOG
Jambool
YuMe
Quikr India Pvt. Ltd.
Nexage
OPEN Sports
StyleCaster
TweetDeck
OurStage
Z2Live
KODA
Scoreloop
Busca
MashLogic
ProtonMedia
Akademos
Roblox
iSocket
Greystripe
Financing & M/A Summary - Last Three Months

iLoop Mobile
Tremor Media
Comunitae
RightsFlow
Lat49
Aloqa
Plista
FourSquare
Tiny Pictures
EduFire
ChessCube
Thread
Tributes.com
CoTweet
Clikthrough
Cellufun
Cognitive Match
BookFresh
People Capital
Linksify
iSyndica
Masher Media
Gigpark
Jul-09
Aug-09
Sep-09
Page 4

of ~$32 million into Mint. An acquisition that did not work out for investors was the $1.3 million transaction for Tiny
Pictures, acquired by ShutterFly, which had raised over $10 million previously. For additional details on financings, see
Mint acquired for $170 million: Just one month after raising $14 million, and three years exactly after winning
TechCrunch40’s $50,000 grand prize, Mint.com agreed to be acquired by Intuit for $170 million. Investors had sunk a total
 Page 5

Advertising remains the most active sector: Advertising-related companies continue to see the most activity by number
of transactions (10), followed by the Gaming sector (eight transactions) and the Social Network sector, also with eight
transactions (Figure 4). The $2.0 billion acquisition of Skype skews the dollars transacted to the SMS/Voice segment,
while the $170 million acquisition of Mint brings the Vertical Communities segment to the second highest total.

Capital Market Activity by Sector - Last Three Months

200.0

180.0

160.0

140.0

120.0
(US$m)

100.0

80.0

60.0

40.0

20.0
2,025.0 197.5 100.1 98.5 82.0 80.0 73.9 64.5 40.0 37.3 18.2 17.7 12.5 12.0 10.0 8.6 8.0 7.0 5.0 4.1 4.0 3.2 1.0 0.5 0.5
0.0
Comment/Reputation
Communities

Gaming

Online Dating

Online Calendar
Mobile

Online Learning

Enterprise

Media

Microblog

Online Lending
Music
SMS/Voice

Infrastructure

Blog

Search

Classified

Mobile Ad
Social Networks

Virtual Goods
Advertising

Virtual World

Crowdsourced

Video

Analytics
Vertical

Content

# companies
1 5 10 8 8 1 5 5 5 3 4 4 1 3 3 2 1 1 1 1 2 1 1 1 1

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

Source. Company reports
 Page 6

C A P I T A L M A R K E T S A C T I V I T Y (P R I C E P E R F O R M A N C E )
Web 2.0 index continues to outpace NASDAQ recovery: Our W eb 2.0 index (market-cap weighted) essentially mirrored
the performance of the NASDAQ composite index from mid-2008 until earlier this year. However, the index has recently
had a much stronger recovery relative to the NASDAQ index (Figure 5).

Web 2.0 Index Price Performance

180

160

140

120

100

80

60

40

20

0
9/15/2008

9/29/2008

10/13/2008

10/27/2008

11/10/2008

11/24/2008

12/8/2008

12/22/2008

1/5/2009

1/19/2009

2/2/2009

2/16/2009

3/2/2009

3/16/2009

3/30/2009

4/13/2009

4/27/2009

5/11/2009

5/25/2009

6/8/2009

6/22/2009

7/6/2009

7/20/2009

8/3/2009

8/17/2009

8/31/2009

9/14/2009
^COMP - Share Pricing Index: Web 2.0 (Market Cap)

Figure 5. Web 2.0 Price Performance

Source. Capital IQ
 Page 7

A strong price performance week: Twenty-eight of the companies in our universe had positive stock price performances
over the past week (for stocks with prices greater than $1) (Figure 6), with only seven companies showing negative
returns on the week. After the biggest rise last week, DigitalTown (OTCBB:DGTW ) fell the most with a -14.3% return,
while Quepasa (OTCBB:QPSA) had the best return, rising 25% in the week.

1 Week P rice P erformance

Quepas a Corp. 25.0%
CDC Corp. 16.4%
DA DA S pA 12.1%
Fluid Mus ic Canada , Inc. 11.8%
S hutterf ly , Inc. 11.4%
TheS treet.com, Inc. 9.1%
Perfect World Co., Ltd. 9.0%
V alueClick Inc. 9.0%
PNI Digital Media Inc. 7.4%
G ree, Inc. 7.0%
United Online Inc. 6.6%
The9 Limited 5.8%
S ohu.com Inc. 5.1%
Cy berplex Inc. 5.0%
Tree.Com, Inc. 4.8%
Ngi G roup Inc. 4.1%
Changy ou.com Limited 3.8%
S handa Intera ctive 3.5%
IA C/InterA ctiveCorp. 3.3%
Open Tex t Corp. 2.7%
Openw ave S y s tems Inc. 2.5%
Mix i, Inc. 2.4%
Webz en Inc. 1.7%
G ameOn Co Ltd. 1.7%
XING A G 1.5%
A Q Interactive, Inc. 1.2%
G igaMedia Ltd. 0.8%
Netea s e.com Inc. 0.1%
LookS mart, Ltd. 0.0%
Lingo Media Corporation 0.0%
Giant Interactive G roup, Inc. -1.6%
S park Netw orks , Inc. -3.1%
Modern Times G roup Mtg A B -3.8%
Frogs ter Interactive Pictures -3.9%
Gravity Co., Ltd -5.0%
NeuLion Incorporated -6.4%
DigitalTow n, Inc. -14.3%

-0.2 -0.15 -0.1 -0.05 0 0.05 0.1 0.15 0.2 0.25 0.3

Figure 6. 1-Week Price Performance

Source. Capital IQ

P U B L I C C O M P A N Y I N D U S T R Y N E W S (P A R T N E R S H I P S , F I N A N C I A L R E S U L T S , N E W P R O D U C T S )
K ey Developments
C ompany
NetDragon W ebS oft, Inc . (S E HK : 777)
S handa Interactive E ntertainment L td.
(Nas daqG S : S NDA)
G eoS entric Oyj (HL S E : G E O1V)
Open Text C orp. (Nas daqG S : OTE X)
K ings oft C o. L td. (S E HK : 3888);
Mic ros oft C orporation
(Nas daqG S : MS F T)
Open Text C orp. (Nas daqG S : OTE X)
TheS treet.com, Inc . (Nas daqG M: TS C M) T heS treet.com Inc. Decla res Quarterly C as h Dividend
P ayable on S eptember 30, 2009
Tenc ent Holdings L td. (S E HK : 700)
S handa Interactive E ntertainment L td.
(Nas daqG S : S NDA)
Neteas e.com Inc . (Nas daqG S : NTE S )
C hangyou.c om L imited
(Nas daqG S : C YOU)
W izzard S oftware C orporation
(AME X: W ZE )
W izzard S oftware C orporation
(AME X: W ZE )
J umbuck E ntertainment L imited
(AS X: J MB )
Page 8
Headline Notes
NetDra gon W ebS oft, Inc., 0. 082 (HK D), C a s h Dividend, NetDragon W ebS oft, Inc. , 0.082 (HK D), C as h Dividend, S ep-07-2009
S ep-07-2009
S ha nda Intera ctive E ntertainment Ltd. Announces B oa rd S handa Intera ctive E nterta inment L td. a nnounced the res igna tion of B runo W u from the B oa rd of Directors of the C ompany, effective
C ha nges S eptember 1, 2009. C oncurrently, the C ompany a nnounced the appointment of Mr. K a i Zha o to the B oa rd of Directors of the C ompany,
effective immedia tely. Mr. Zhao previous ly s erved as dea n of the J ourna lis m S chool of F uda n Univers ity, s ecreta ry genera l of the C hina
C ommunis t P arty (C C P ) committee of W enhui-X inmin United P res s News paper G roup, chief editor of Liberation Da ily a nd s ecreta ry general
of the C C P committee of S hanghai Municipa l R adio, F ilm a nd T elevis ion B ureau a s well a s in various managerial roles a t S ha ngha i
Municipal R adio and T elevis ion B urea u, O rienta l R adio S ta tion, S ha ngha i P eople's R a dio S tation and Qinghai Daily.
G eoS entric L aunches G yP S ii Next G eneration Us er G eoS entric Oyj announced the la unch of the G yP S ii next generation us er interface for J ava phones opens up a whole new market of
Interfa ce potential G yP S ii us ers , and provides the type of full-colour, s eamles s a nd feature-rich us er-experience us ua lly only s een on applications for
a dva nced, high-end s martphones . Us ing G yP S ii on a typical J ava hands et from leading ma nufa cturers s uch as Nokia a nd S ony E rics s on,
cons umers ca n quickly and ea s ily crea te a nd s hare with other G yP S ii members loca tion-s pecific content and pla ces . W ith G yP S ii they can
a ls o explore their local s urroundings for friends , and acces s informa tion a nd conta ct deta ils on nea rby points -of-interes t all from their mobile
phone. T o crea te the enhanced J ava UX (us er experience), G yP S ii drew on its extens ive experience developing for s martphone pla tforms
s uch a s S ymbian, W indows Mobile, a nd the iP hone. G yP S ii is a ls o pre-loaded on a range of hands ets from S ams ung, L G and G armin giving
it unrivalled market rea ch.
C entral B edfords hire C ouncil S elects Open T ext as K ey O pen T ext C orp. announced that newly formed C entra l B edfords hire C ouncil has s elected the Open T ext E C M S uite to deliver the
E na bler for T rans formation functiona lity to facilita te regulatory a nd pra ctica l requirements for Document and R ecords Mana gement, to integra te with enterpris e-wide
B us ines s P roces s es a nd deliver content over the web. As part of the project, C entra l B edfords hire will migra te a ll relevant documents and
records to the newly deployed Open T ext E C M S uite and is creating a s tra tegy to implement Document and R ecords Management a cros s a ll
of the councils depa rtments . T he council's s trategy to manage its information a nd content, es ta blis hing effective and efficient bus ines s
proces s es , will help meet the requirements outlined in the G overnment commis s ioned G ers hon a nd V a rney reports ; improving
communica tion cha nnels with citizens , and s a fely s toring a ll records a nd da ta in a robus t a nd s ecure environment. T he new council ha s
s ignificant s avings targets to meet a nd will be undertaking a review of a ll ma jor s ervices to ma ke them more cus tomer-orienta ted, efficient
a nd effective. T he council will s eek to make a s ma ny public documents , s tored within the s ys tem, ava ilable through their new internet s ite a s pos s ible.
Micros oft C orpora tion and K ings oft C o. Ltd. to L aunch Micros oft C orporation a nd K ings oft C o. Ltd. will tea m up to la unch Mes s enger P rotection S hield for the numerous W indows L ive Mes s enger
Mes s enger P rotection S hield us ers . T he move can efficiently block malicious webs ites , curb the s prea ding of us eles s mes s ages , and ens ure the s ecurity of files . MS N, a
product of the US -ba s ed s oftwa re titan, is the No. One ins ta nt mes s aging platform in the world by us er number.
Open T ext O utlines V ignette S trategy a nd P roduct P lans O pen T ext C orp. announced pla ns to expa nd its s uite of next-generation W eb s olutions with products a nd technologies from recently
a cquired V ignette playing a centra l role. O pen T ext's pla ns are an extens ion of the compa ny's s tra tegy to ma intain its leaders hip in
comprehens ive E C M s olutions . O ffered as part of the Open T ext E C M S uite, the s olutions will help orga niza tions es ta blis h deeper
connections to cus tomers a nd us e the W eb a s a cha nnel for new revenues . Q uickly evolving s ocial networking, digital media and mobile
a pplica tions a re moving the W eb beyond bra nd promotion to become a core component of bus ines s s trategy. B ringing thes e technologies
together for a more powerful online experience is critica l to enga ging cus tomers in new ways , improving the effectivenes s of ma rketing
progra ms a nd guiding changes in bus ines s s trategy tha t can increa s e revenue a nd improve operations .
T heS treet. com Inc. announced tha t its board of directors has decla red the compa ny's qua rterly cas h dividend on its common s tock. T he
cas h dividend of $0.025 per s hare of common s tock will be paya ble on S eptember 30, 2009, to all s hareholders of record at the clos e of
bus ines s on S eptember 15, 2009.
T encent Holdings Ltd. Announces R evenue R es ults for T encent Holdings L td. announced revenue res ults for the s econd quarter of 2009. F or the qua rter, the company reported revenues of C NY
the S econd Quarter of 2009 1.24 billion up 36% qua rter on qua rter a nd ta king up 20. 2% of the ma rket s hare.
S ha nda Intera ctive E ntertainment Ltd. Announces S handa Intera ctive E nterta inment L td. a nnounced revenue res ults for the s econd quarter of 2009. F or the qua rter, the company reported
R evenue R es ults for the S econd Q ua rter of 2009 revenues of C NY 1.23 billion up 14% accounting for 20% of the ma rket s hare.
Netea s e.com Inc. Announces R evenue R es ults for the Neteas e. com Inc. a nnounced revenue res ults for the s econd qua rter of 2009. F or the qua rter, the company reported revenues of C NY 780
S econd Quarter of 2009 million s tanding at 12. 7% of the market s hare.
C ha ngyou. com Announces L aunch of 'B lade Hero 2' C hangyou. com L imited a nnounced that it ha s launched B lade Hero 2, the C ompa ny's new 2. 5D martia l a rts -s tyle fighting ma s s ively multi-
player online role-playing ga me. B la de Hero 2, created a s a s equel to the C ompany's exis ting ga me B la de O nline, features a fighting a nd
tea m-combat s ys tem that allows pla yers to experiment with a uthentic fighting techniques a nd wea pons from different s ects of martial arts ,
including the us e of hidden weapons , a s well a s deploy C hines e combat s trategies in ba ttles . B lade Hero 2 a ls o employs the C ompa ny's
dyna mic graphic technology, which ca n exhibit deta iled fighting moves and other s pecia l effects to enha nce the virtua l fighting experience.
B la de Hero 2 began its ultimate clos ed beta tes ting and is now publicly a va ilable for game players to downloa d. All ga me a ccount da ta will be
s aved perma nently without ca ncella tion.
W izza rd Media R eleas es T hirteen New Apps on the App W izzard S oftware C orpora tion announced the la unch of thirteen new clas s ic a udio book podcas t Apps , bringing the tota l to twenty-nine,
S tore targeting s tudents hea ding ba ck to s chool facing a lis t of required rea ding. Now, s tudents ca n lis ten to the full a udio vers ion of clas s ic books
s uch a s T he T hree Mus keteers , G ulliver's T ra vels , T reas ure Is la nd, P ha ntom of the Opera, T he Hunchba ck of Notre Dame, E dgar Allan P oe
C ollection and the P rince and the P auper, on their iP hone(T M) or iP od(R ) T ouch as s treaming podcas ts through cus tomized Apps . W izzard
continues to crea te a variety of high-quality podca s t Apps to be marketed through ta rgeted podca s ts a nd enjoyed on the iP hone(T M) a nd
iP od(R ) touch. T hes e clas s ic books are not only convenient a nd a ffordable but, a re profes s iona lly rea d and recorded.
W izza rd Media Acquires E xclus ive Dis tribution R ights to W izzard Media a nnounced the acquis ition of exclus ive dis tribution rights to mega App, iB ons ai, currently for s ale through the App S tore for
Mega App, Ibons a i us e on iP hones (T M) and iP od(R ) touch. Adding to its fa s t growing ros ter of premium iP hone Apps , W izza rd Media acquired the rights to this
highly regarded App ba s ed s olely on its future s a les potential and ta rgeta bility through W izzard's podca s t ma rketing a nd dis tribution network.
W izzard ha s focus ed its recent App a cquis ition efforts on qua lity, timeles s Apps tha t match up well with highly ta rgeted podcas t audiences
genera ting app developers a nd podcas ters revenues for the s ale a nd promotion of the Apps . iB ons a i will ta rget audiences of yoga,
meditation a nd wellnes s podcas ts as well a s other s imila r s hows on the W izza rd Network.
J umbuck E ntertainment Limited, 0. 02 (AUD), C a s h J umbuck E nterta inment L imited, 0.02 (AUD), C as h Dividend, S ep-10-2009
Dividend, S ep-10-2009

3Di Inc .; Ngi G roup Inc. (TS E : 2497);
NTT Inves tment P artners Inc.
P NI Digital Media Inc . (TS XV: PN)
Melodeo, Inc.; W izzard S oftware
C orporation (AME X: W ZE )
TheS treet.com, Inc . (Nas daqG M: TS C M) T heS treet.com, Inc., $ 0. 025, C a s h Dividend, S ep-11-
G iant Interac tive G roup, Inc.
(NY S E : G A)
Myriad G roup AG (S W X: MYR N)
Figure 7. Key Developments
Source. Capital IQ
3Di Inc. a nnounced that it ha s received ¥500 million in
funding from Ngi G roup Inc. a nd NT T Inves tment
P artners Inc.
P NI Digita l Media Inc. P owers Marks & S pencer's New
Online P ers onalis ed G reeting C a rd S ervice
W izza rd Media and Melodeo P a rtner on iP hone App for
P op S upers ta r Us her
2009
G ia nt Intera ctive G roup Inc. , Annual G enera l Meeting,
S ep 11, 2009
Myriad G roup Introduces W idget S olution for Ultra-Low
C os t Mobile P hones
Page 9
3Di Inc. a nnounced tha t it has rais ed ¥500 million in a round of funding on S eptember 10, 2009. T he compa ny is s ued common s ha res in the
round. T he round s aw pa rticipa tion from NT T Inves tment P artners Inc. a nd exis ting inves tor Ngi G roup Inc.
P NI Digital Media Inc. a nnounces the P NI Digita l Media P latform will power Marks & S pencer's new online greeting card s ervice, M& S
P ers onalis ed C a rds . T he new online M& S P ers onalis ed C a rds s ervice offers cons umers the chance to ea s ily crea te one-of-a -kind greeting
cards , fea turing fully cus tomizable mes s a ges on a ny of the 1, 200 T igerprint(T M)-des igned themes , a ll powered by the P NI Digital Media
P la tform. C ons umers ca n add their own mes s ages a nd then ins tantly preview their pers ona lis ed card online before being s ent for delivery
a nywhere in the UK . W ith themes covering a ll manner of s pecial occa s ions and a ha ndy C a rd F inder fea ture to help filter choices , well-
wis hers ca n ea s ily ma tch tha t perfect card to the s entiment they wis h to convey.
W izzard S oftware C orpora tion ha s partnered with Melodeo, purveyors of the s ucces s ful nuT s ie line of digita l mus ic products , on Us her's T op
100, a n iP hone a pp fea turing 100 of the pop s upers ta r's fa vorite s ongs in a s trea ming pla ylis t. Us her is currently a W izza rd Network
podca s ter. Us her's T op 100 will a llow lis teners to s trea m popula r mus ic to their mobile phone, purcha s e mus ic through iT unes , downloa d and
lis ten to it anywhere or a ny time in high qua lity s tereo. T he App will s ell for $2.99 and the dea l calls for a revenue s ha re between the pa rties .
T heS treet. com, Inc. , $ 0.025, C as h Dividend, S ep-11-2009
G iant Interactive G roup Inc. , Annua l G eneral Meeting, S ep 11, 2009, a t 15:00 C C T -C hina C oa s t, US S R Zone 7. L ocation: 7F 2nd B uilding,
396 G uilin R oad, Xuhui Dis trict, S ha nghai, 200233, C hina . Agenda: T o re-elect J as on Na nchun J ia ng a nd P eter Andrew S chlos s as Directors
of the company; to a ppoint E rns t & Y oung Hua Min a s Independent Auditor for the fis cal yea r 2009.
Myria d G roup AG launched Myriad Dynamic Homes creen, a technology innova tion which enables graphical web-bas ed widgets on the
world's mos t afforda ble mobile phones , even thos e s elling for a s little as $10 or $15 in India , Africa a nd La tin America . W idgets are s ma ll
a pplica tions that dis play wea ther reports , horos copes , s ports s cores and other informa tion directly on the mobile phone's home s creen,
without requiring the us er to s croll through menus or s earch for an a pplica tion. In wealthier markets s uch a s E urope, mobile widgets ha ve
a lready proven popula r on expens ive feature phones and s ma rt phones , and are being added to a n increa s ing ra nge of ma s s ma rket
phones . Myria d Dyna mic Homes creen is AJ AX -bas ed a nd us es technology, s tanda rds and developer tools common in the mobile indus try.
Myria d ha s alrea dy ported its new widget s olution acros s multiple chips et vendors , including 16-bit R T O S a nd AR M7 100MHz des igns . T he
s oftware ha s a n exceptionally low entry point for s ys tem res ources , requiring les s than 500K b R OM a nd 500K b R AM.
 Page 10

VALUATION
Online Gaming companies lead market-cap charts: Thirteen companies in our W eb 2.0 universe top US$1 billion in
market capitalization (Figure 8). Fifty-seven of the 91 companies have market caps under US$100 million, with 25 under
US$10 million. Online gaming companies dominate the top of the list, led by Tencent Holdings with a market cap near
US$30 billion.

Market C ap (US D m)
Tenc ent Holdings Ltd. 29516.3
Neteas e.c om Inc. 5509.7
S handa Interac tive Entertainment Ltd. 3433.2
Modern Times G roup Mtg A B 2725.4
IA C/InterA c tiveCorp. 2568.6
S ohu.c om Inc . 2523.9
Changy ou.c om Limited 2229.7
G ree, Inc. 2153.5
Perf ec t W orld Co., Ltd. 2135.5
Open Tex t Corp. 2003.4
G iant Interac tive G roup, Inc. 1705.1
K ings oft Co. Ltd. 1224.3
Chines e G amer International 1137.4
V alueClic k Inc. 975.2
Mix i, Inc. 947.4
United Online Inc. 653.9
NEOWIZ G ames Corporation 615.4
NetDragon W ebS oft, Inc . 394.2
S hutterfly , Inc. 378.3
GungHo Online Entertainment, Inc. 328.0
S K Communic ations Co., Ltd. 314.0
CDC Corp. 293.6
G igaMedia Ltd. 263.3
X ING A G 252.7
Openw ave S y s tems Inc . 239.6
Gamania Digital Entertainment Co., 224.3
The9 Limited 205.0
DA DA S pA 168.2
OA O R B C Inf ormation S y s tems 145.7
A c toz S oft Co., Ltd. 127.9
Y edangOnline Corp. 114.3
NeuLion Inc orporated 109.5
GameOn Co Ltd. 108.3
My riad Group A G 91.2
K A B Dis tribution Inc . 84.8
Tree.Com, Inc . 84.6
TheS treet.com, Inc. 81.1
Cy berplex Inc . 77.1
HanbitS oft, Inc . 72.2
Fluid Mus ic Canada, Inc. 69.4
Frogs ter Interac tive Pic tures A G 69.2
GeoS entric Oy j 65.5
PNI Digital Media Inc . 59.9
Eolith Co. Ltd. 50.7
G ravity Co., Ltd 47.5
S park Netw orks , Inc . 44.9
DigitalTow n, Inc . 41.0
Ngi G roup Inc . 40.1
DXN Holdings B hd 38.0
Webz en Inc. 34.9
NeX plore Corporation 33.5
Northgate Tec hnologies Limited 31.1
A Q Interactive, Inc . 31.0
Wiz z ard S oftw are Corporation 27.8
Quepas a Corp. 22.3
S oc ialw is e, Inc. 21.7
Dolphin Digital Media, Inc . 20.2
LookS mart, Ltd. 20.0
B roadWebA s ia Inc. 19.5
Y nk K orea Inc. 18.5
A c c eleriz e New Media, Inc . 16.8
J umbuc k Entertainment Limited 15.6
UOMO Media, Inc 11.7
Lingo Media Corporation 11.6
S pec trumDNA , Inc . 10.7
IA S Energy , Inc. 10.5
B ey ond Commerc e, Inc . 9.3
Ex tens ions , Inc. 8.0
B right Things plc 6.2
CornerWorld Corporation 5.7
Worlds .c om Inc. 5.7
MOK O.mobi Limited 5.3
S NA P Interactive, Inc . 4.3
DigitalPos t Interactive, Inc . 4.2
Magnitude Information S y s tems Inc . 4.2
V OIS , Inc. 3.3
is eemedia Inc . 2.9
W ooz yFly , Inc. 2.6
B etaw ave Corporation 2.0
Wy nds torm Corporation 1.8
LiveWorld Inc . 1.2
B igs tring Corp. 1.2
Unis erve Communic ations Corp. 1.0
A s s oc iated Media Holdings Inc . 0.6
CLICK ER Inc . 0.4
The Parent Company 0.4
China Gatew ay Corporation 0.3
Total S port Online A S 0.1
S NM G lobal Holdings 0.0
Dibz International, Inc. 0.0
S oc ial Media V enures , Inc. 0.0
0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000

Figure 8. Market Cap Ranking

Source. Capital IQ
 Page 11

TEV/Revenue (LTM) averages 5.2x: The overall average TEV/Revenue (LTM) multiple for our group is 5.2x (vs. 6.0x last
week) (Figure 9). Two companies trade at more than 25x revenue – Bigstring Corp. (OTCBB:BSGC) at 35.1x and Dolphin
Digital Media, Inc. (OTCBB:DPDM) at 36.3x. The median is only 1.7x. Note that we exclude multiples greater than 50x.
Thirty-one companies have multiples under 1.5x.

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

40. 0
36.3
35.1
35. 0

30. 0

25. 0 23.3
22.4

20.1
20. 0 18.9

15.6
14.1
15. 0 13.2
11.6 12.1

10. 0 8.8 8.9

8.1
A v erage, 5. 2 6.1 6.3
5.4
4.54.6 4.6 4.9
5. 0 4.1 4.2
3.2 3.4 3.5
2.4 2.5 2.6 2.7 2.9 3.0
1.3 1.4 1.4 1.5 1.5 1.7 1.7 2.2
0.8 0.8 0.8 0.9 0.9 1.0 1.0 1.0 1.1 1.2
0.1 0.2 0.2 0.2 0.2 0.4 0.4 0.4 0.6 0.6 0.6 0.7 0.7 0.7
0. 0
N E O WIZ G ames C orporation
J umbuc k E ntertainment Limited

G a mania Digita l E nterta inment

MO K O .mobi Limited

UO MO Media, Inc
C L IC K E R Inc.

P NI Digita l Media Inc.

C hines e G amer International

G ungH o O nline E ntertainment,
DXN Holdings B hd

C ha ngy ou.c om L imited

G ameO n C o L td.
T ree.C om, Inc.

C DC C orp.

B ey ond C ommerc e, Inc.

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

DigitalP os t Interactiv e, Inc.

F luid Mus ic C anada, Inc.

Dolphin Digital Media, Inc.

T he P a rent C ompa ny

Modern T imes G roup Mtg AB

G eoS entric O y j
Unis erv e C ommunic ations

S N M G lobal Holdings

NeuLion Inc orporated

C ornerWorld C orporation

L ingo Media C orporation

T heS treet.com, Inc.

S N AP Intera ctiv e, Inc.

United O nline Inc.

O pen T ex t C orp.

F rogs ter Interactiv e P ictures

AQ Intera ctiv e, Inc.

IAC /InterActiveC orp.

C y berplex Inc.

S park Network s , Inc.

G iga Media Ltd.

is eemedia Inc.

V alueC lic k Inc.

NetDragon WebS oft, Inc.

XIN G AG
E olith C o. Ltd.

S ohu.com Inc.

Mix i, Inc.

G ree, Inc.

T encent Holdings Ltd.

N orthgate T ec hnologies

B right T hings plc

P erfect World C o., Ltd.
O penwave S y s tems Inc.

H anbitS oft, Inc.

Y nk K orea Inc.

Y edangO nline C orp.

My riad G roup AG

S oc ial Media V enures , Inc.

B igs tring C orp.

T otal S port O nline AS

As s ociated Media Holdings

S hutterfly , Inc.

Acceleriz e New Media , Inc .

K ings oft C o. Ltd.

DADA S pA
Actoz S oft C o., Ltd.

Wiz z ard S oftware

Figure 9. TEV/Revenue Ranking

Source. Capital IQ

TEV/Revenue (LTM) by country/exchange: W e have also calculated multiples based on where the companies are listed
or domiciled. Figure 10 shows the average TEV/Revenue multiples by stock exchange. The OTCBB has the largest
number of companies (19), trading at an average multiple of 11.5x (vs. 12.4x last week). On a geographic basis, the
United States has the most companies (39), trading at an average of 5.6x revenue (vs. 7.6x last week) (Figure 11). Ten of
the companies are Canadian (average 4.4x revenue).

Average TEV/LTM Revenue - By Exchange Average TEV/LTM Revenue - By Country

25.0 22.4 25.0 22.4

20.0 20.0

15.0 12.1
11.8 15.0
(x)

11.7 12.1
(x)

10.0 11.510.2 11.8

10.0 8.0 7.1
5.6 5.0 4.63.6
5.0 3.2 3.1 2.5 2.4 2.0 1.9 1.7 5.6 4.6 4.5
2.0 0.9 0.7 5.0 4.4
0.0 0.4 0.3 0.0 2.4 2.0 1.9 1.7
0.9 0.8
OTCNO
OTCPK
OTCBB
GTSM

NasdaqGM
HLSE

SEHK

TSE

OSE

NasdaqGS
KOSE

RTS
OM
CM

0.7 0.4 0.0

XTRA

TSX

AMEX

KLSE
BSE
AIM

TSXV

SWX

0.0
ASX

Germany
United
Finland

China

United

Japan
Canada

Hong Kong
Malaysia
India
Russia
Italy
South
Taiwan

Australia
Norway

Switzerland

Sweden

# Companies 1 1 2 3 19 2 4 5 1 11 4 2 1 1 14 6 2 1 1 1 1 5 1

# Companies 1 1 2 10 3 39 1 6 10 1 8 2 1 1 1 1 1 1

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

Source. Capital IQ
 Page 12

TEV/EBITDA (LTM) averages 13.1x: The average multiple for the 36 companies with positive EBITDA (and multiples
under 100x) is 13.1x LTM EBITDA (vs. 12.7x last week), led by Tencent Holdings (SEHK-700) 47.6x multiple (Figure 12).
Eleven companies have EBITDA multiples under 7x. The median multiple is 10.6x (vs. 9.9x last week).

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

60. 0

50. 0 47. 6
42. 7

40. 0
33. 7

30. 0
24. 6 24. 7 25. 6
22. 0
20. 2
20. 0 18. 1
15. 7
A verage, 13. 1 13. 3 14. 4
11. 1 11.2 11.5 11.5 11.9
9. 6 9. 9 9. 9 10. 2 10. 9
10. 0 8. 0 8. 5 8. 5
4. 5 4. 8 5. 8 6. 9
3. 8 4. 0
1. 7 2. 9
0. 2 1. 2 1. 3
0. 0

NE O WIZ G ames C orporation

J umbuck 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 Holdings B hd

C hangy ou. c om L imited

G ameO n C o L td.

C DC C orp.

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

Modern T imes G roup Mtg AB
S NAP Interac tive, Inc .

U nited O nline Inc .

T heS treet. c om, Inc .

O pen T ex t C orp.
S park Network s , Inc .

C yberplex Inc .

V alueC lic k Inc .

S ohu. c om Inc .

NetDragon WebS oft, Inc .

IAC /InterAc tiveC orp.

Mix i, Inc .

G ree, Inc .

T enc ent Holdings L td.

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

Y edangO nline C orp.

Y nk K orea Inc.

O penwave S y s tems Inc .

H anbitS oft, Inc.

S hutterfly , Inc.

K ings oft C o. L td.

DADA S pA
Actoz 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 (19), trading at an average multiple of 2.9x. On a geographic basis, the
United States has the most companies (39), trading at an average of 10.0x EBITDA (Figure 14). Ten of the companies are
Canadian (average 13.5x EBITDA).

Average TEV/LTM EBITDA - By Exchange Average TEV/LTM EBITDA - By Country

30.0 25.9 25.0
25.0 20.9
20.0
20.0 24.7 18.7
20.9
18.7 15.0 17.0
(x)

15.0
(x)

13.9 13.5 13.3

11.9 11.2 11.0 10.9 11.9 11.5
10.0 10.0 10.9 10.0
8.5
6.9
5.0 5.8 4.8 4.0 2.9 6.9
1.3 0.2 5.0 4.8
0.0 0.2
OTCBB
GTSM

NasdaqGM

1.3
SEHK

KOSE

TSE

OSE

NasdaqGS

RTS
OM

CM
XTRA

TSX

KLSE

AMEX
TSXV

ASX

0.0 0.0
Germany
China

Canada

Japan

Hong Kong

United

Malaysia

Russia
Italy
South
Korea

States
Taiwan

Australia
Sweden

Switzerland

# Companies 3 4 2 6 5 2 1 14 1 5 1 4 1 2 19 2 1
# Companies 3 8 10 10 6 2 1 1 39 1 1 2 1 1

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

Source. Capital IQ
 Page 13

P/E (LTM) averages 18.6x: The average multiple for the 33 companies with positive earnings (and multiples under 100x)
is 18.4x LTM EPS (vs. 18.4x last week), led by GungHo Online Entertainment’s (OSE:3765) 71.7x multiple (Figure 15).
Eleven companies have P/E multiples under 10x. The median is just 13.1x.

P /E L T M (x)

80.0
71.7
70.0
60.3
60.0

50.0 46.2 46.5

43.5

40.0
32.8 33.4

30.0 24.4 26.1

22.0
A verage, 18.6 18.6 19.4
20.0 14.9 15.3 16.1
12.1 12.3 12.4 13.1 13.2
10.4 10.9
10.0 6.3 6.8 7.7
3.1 3.1 4.5
2.0 2.3 2.5
0.0

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

G amania Digital E ntertainment C o., Ltd.

G ungH o O nline E ntertainment, Inc.

C hines e G amer International
DXN H oldings B hd

C hangy ou.com Limited

G iant Interactive G roup, Inc.

G ameO n C o Ltd.

Modern T imes G roup Mtg AB

T he9 Limited

S handa Interactive E ntertainment Ltd.

Neteas e.com Inc.

S NAP Interactive, Inc.

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

G igaMedia Ltd.

IAC /InterActiveC orp.

S park Network s , Inc.

S ohu.com Inc.

NetDragon W ebS oft, Inc.

Worlds .com Inc.

G ree, Inc.

Mix i, Inc.

T encent H oldings Ltd.

XING AG
P erfect World C o., Ltd.

Y edangO nline C orp.

H anbitS oft, Inc.

K ings oft C o. Ltd.

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 (19), trading at an average multiple of 14.8x. On a geographic basis, the United States has
the most companies (39), trading at an average of 13.5x earnings (Figure 17). Ten of the companies are Canadian
(average 20.1x EPS).

Average P/E - By Country

Average P/E - By Exchange 50.0
43.8
80.0 45.0
71.7
70.0 40.0
35.0
60.0
30.0
50.0 26.1 24.4
(x)

34.5 33.6 25.0 20.1

(x)

40.0 31.5 20.0

26.1 14.4 13.5
30.0 19.2 15.0 13.2 12.8
14.8
20.0 13.2 12.3 10.8 10.0 6.3
6.8 6.3 4.5
10.0 4.5 5.0 0.0
2.0
0.0 0.0 0.0 0.0
Germany
Japan

Canada

China

United

Malaysia

Italy
OTCBB

South
Korea
GTSM

NasdaqGM

States
OSE

TSE

SEHK

KOSE

NasdaqGS

Taiwan

Australia
OM
XTRA

AMEX

TSX

KLSE

NYSE

Sweden

Switzerland
ASX

# Companies 1 5 3 2 2 6 19 1 2 14 4 1 2 1 5 # Companies 6 2 3 10 10 39 1 8 1 2 1 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 Deta ils
NA NA NA NA

Figure 18. Earnings Calendar

Source. Company reports
 Page 15

C omparable C ompany Analys is > Web 2.0

P ric e P erformanc e
C ompany Name C urrency Ticker 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 LZ OTC B B 16.8 0.60 5. 3% 5.3% 71.4% 160. 9% 9. 1% -9.1%
A ctoz S oft C o. , L td. KR W A052790 K OS E 127.9 18,100 4. 0% -19.7% -31.3% 62.3% 112.4% -49.7%
A Q Interactive, Inc. JPY 3838 TSE 31.0 51,600 1. 2% 2.2% -31.7% 51.8% -25.0% -45.3%
A s s ocia ted Media H oldings Inc. US D AS MH OTC P K 0. 6 0.01 -30.0% -30.0% 833.3% 180. 0% -30.0% -72.0%
B igs tring C orp. US D BS GC OTC B B 1. 2 0.02 -11.4% -2.5% -32.8% 21.9% -61.0% -70.0%
B eta wave C orporation US D B W AV OTC B B 2. 0 0.07 0. 0% 16.7% -30.0% -56. 3% -75.0% -79.4%
B eyond C ommerce, Inc. US D B Y OC OTC B B 9. 3 0.20 -4.8% -31.0% -76.3% -54. 5% -92.0% -92.3%
B right T hings plc GBP AIM:B G T A IM 6. 2 0.01 0. 0% -1.8% -8.3% -21. 4% -8. 3% -44.3%
B roadW ebA s ia Inc. US D BWBA OTC P K 19.5 0.23 -22.8% -22.8% -54.9% -77. 2% -84.7% -92.1%
C DC C orp. US D C H IN.A Nas da qG S 293.6 2.77 16.4% 6.1% 84.7% 158. 9% 13.1% -29.3%
C ha ngyou.com L imited US D CY OU Nas da qG S 2,229.7 40.54 3. 8% 7.2% 13.9% NM NM -16.2%
C hina G a tewa y C orporation US D CGW Y OTC P K 0. 3 0.02 -25.0% 650.0% 650.0% 650. 0% -50.0% -57.1%
C hines e G a mer International TWD G T S M:3083 GTS M 1,137.4 440.00 -2.8% -1.7% 31.3% 187. 6% 671.9% -15.2%
C LIC K E R Inc. US D CLK Z OTC B B 0. 4 0.01 -26.7% -31.3% 111.5% -56. 0% -98.9% -98.9%
C ornerW orld C orpora tion US D CW R L OTC B B 5. 7 0.06 0. 0% 0.0% -14.3% -57. 1% -70.0% -87.2%
C yberplex Inc. C AD T S X: C X TSX 77.1 1.27 5. 0% -25.3% -29.4% 154. 0% 119.0% -36.2%
DADA S pA E UR C M: DA CM 168.2 7.11 12.1% 15.6% 12.9% 51.3% -30.6% -34.2%
DXN Holdings B hd MY R DXN K LS E 38.0 0.58 6. 4% 17.2% 43.2% 107. 1% 52.6% -4.1%
Dibz International, Inc. US D DIB Z OTC P K 0. 0 0.00 20.0% NM 20.0% -88. 0% -97.6% -97.6%
DigitalP os t Intera ctive, Inc. US D DG LP OTC B B 4. 2 0.06 0. 0% 0.0% 161.9% 511. 1% 10.0% -44.4%
DigitalT own, Inc. US D DG T W OTC B B 41.0 1.50 -14.3% 15.4% -39.8% -50. 0% -64.7% -66.7%
Dolphin Digital Media, Inc. US D DP DM OTC B B 20.2 0.38 -14.5% -8.3% -31.6% -23. 3% -54.1% -66.7%
E olith C o. Ltd. KR W A041060 K OS E 50.7 855.00 -10.0% 8.2% 9. 6% 48.7% 42.5% -26.3%
E xtens ions , Inc. US D E XT I OTC P K 8. 0 0.18 -10.0% 125.0% 20.0% 20.0% 80.0% -10.0%
F luid Mus ic C anada , Inc. C AD T S X: F MN TSX 69.4 1.42 11.8% 5.2% 89.3% 305. 7% 1. 4% -5.3%
F rogs ter Intera ctive P ictures A G E UR FR G XT R A 69.2 18.78 -3.9% 30.6% 140.8% 230. 6% 201.4% -5.5%
G amania Digita l E nterta inment C o. , Ltd. TWD 6180 GTS M 224.3 48.05 -5.6% -18.0% -16.3% 64.6% 199.4% -30.2%
G ameO n C o Ltd. JPY 3812 TSE 108.3 101,300 1. 7% -2.1% -10.4% 29.5% -27.8% -33.8%
G eoS entric Oyj E UR G E O1V H LS E 65.5 0.05 0. 0% -16.7% 25.0% 66.7% 0. 0% -16.7%
G ia nt Interactive G roup, Inc. US D GA NY S E 1,705.1 7.53 -1.6% -3.2% -6.3% 2.0% 0. 4% -21.3%
G igaMedia Ltd. US D G IG M Nas da qG S 263.3 4.83 0. 8% 2.8% -15.6% -15. 4% -45.9% -50.9%
G ra vity C o., L td US D GR VY Nas da qG M 47.5 1.71 -5.0% -23.7% 48.7% 171. 4% 33.6% -35.0%
G ree, Inc. JPY T S E :3632 TSE 2,153.5 8,700 7. 0% 8.8% 45.5% 87.9% NM -0.6%
G ungH o Online E nterta inment, Inc. JPY 3765 OS E 328.0 258,900 7. 9% 19.5% 15.1% 133. 0% 32.3% -7.5%
H anbitS oft, Inc. KR W A047080 K OS E 72.2 4,025 3. 1% -7.4% -16.1% 19.4% 9. 8% -39.4%
IAC /InterA ctiveC orp. US D IA C I Nas da qG S 2,568.6 19.40 3. 3% 3.5% 19.3% 30.2% 13.4% -0.8%
IAS E nergy, Inc. US D IA S A .E OTC B B 10.5 0.15 11.1% 0.0% -21.1% 233. 3% -16.7% -46.4%
is eemedia Inc. C AD IE E T S XV 2. 9 0.06 20.0% 20.0% -20.0% -25. 0% -57.1% -66.7%
J umbuck E nterta inment L imited AU D AS X:J MB AS X 15.6 0.37 -7.5% 0.0% -9.8% -17. 8% -26.0% -39.3%
K AB Dis tribution Inc. C AD T S X: K A B TSX 84.8 1 0. 0% 1.6% 4. 8% 85.7% -9. 7% -23.5%
K ings oft C o. Ltd. HK D 3888 S E HK 1,224.3 9 -2.1% 5.5% 62.9% 222. 2% 278.3% -8.1%
L ingo Media C orpora tion C AD T S XV :L M T S XV 11.6 1.00 0. 0% 0.0% -11.5% 23.5% -41.2% -45.1%
L iveW orld Inc. US D LV W D OTC P K 1. 2 0.04 -20.0% -33.3% -66.7% -80. 0% -83.3% -84.0%
L ookS mart, L td. US D LO O K Nas da qG M 20.0 1.17 0. 0% -4.9% -10.0% 30.0% -59.2% -59.7%
Ma gnitude Informa tion S ys tems Inc. US D MAG Y OTC B B 4. 2 0.01 2. 2% 53.3% -36.6% -51. 6% -45.9% -69.3%
Mixi, Inc. JPY 2121 TSE 947.4 556, 000.00 2. 4% -11.6% 24.1% 79.4% -24.6% -30.8%
Modern T imes G roup Mtg AB SEK MT G B OM 2,725.4 289.50 -3.8% -1.2% 33.7% 123. 1% 2. 7% -7.2%
MO K O .mobi Limited AU D MK B AS X 5. 3 0.07 -6.7% 7.7% 7. 7% 16.7% 105.9% -30.0%
Myriad G roup AG C HF MY R N S WX 91.2 4.44 -1.1% 4.5% -11.0% 11.0% -50.1% -53.3%
NE O W IZ G ames C orpora tion KR W A095660 K OS E 615.4 35, 700.00 -2.6% 8.7% 5. 2% 82.8% 254.3% -15.0%
NetDra gon W ebS oft, Inc. HK D 777 S E HK 394.2 5.78 -0.2% -16.0% 12.9% 70.0% 25.7% -19.2%
Neteas e. com Inc. US D NT E S Nas da qG S 5,509.7 42.57 0. 1% 2.6% 21.0% 81.7% 73.1% -9.3%
NeuLion Incorpora ted C AD T S X: NL N TSX 109.5 1.03 -6.4% -5.5% 41.1% 148. 2% NM -2.8%
NeXplore C orpora tion US D NXP C OTC P K 33.5 0.60 9. 1% -11.8% -13.0% 3.4% 20.0% -58.6%
Ngi G roup Inc. JPY 2497 TSE 40.1 29, 250.00 4. 1% -11.6% -17.4% 62.1% -75.1% -77.1%
Northgate T echnologies L imited INR 590057 BSE 31.1 43.15 -5.1% 23.6% -2.5% 42.2% -83.5% -86.2%
O pen T ext C orp. US D OT E X Nas da qG S 2,003.4 35.68 2. 7% -9.7% -0.3% 9.8% 1. 1% -11.2%
O penwa ve S ys tems Inc. US D OP W V Nas da qG S 239.6 2.87 2. 5% -3.4% 21.1% 239. 6% 120.8% -8.3%
P erfect W orld C o., L td. US D PWRD Nas da qG S 2,135.5 43.42 9. 0% 12.9% 80.5% 243. 0% 74.0% -3.5%
P NI Digital Media Inc. C AD T S XV :P N T S XV 59.9 1.88 7. 4% 21.3% 11.2% 21.3% -23.3% -34.3%
Q uepa s a C orp. US D QP S A OTC B B 22.3 1.75 25.0% 25.0% 173.4% 54.9% -46.8% -47.4%
O AO R B C Informa tion S ys tems US D R BCI R TS 145.7 1.05 0. 0% 16.7% 6. 6% 238. 7% -86.2% -86.6%
S ha nda Intera ctive E nterta inment L td. US D S NDA Nas da qG S 3,433.2 51.42 3. 5% 11.1% -4.0% 44.1% 71.5% -20.9%
S hutterfly, Inc. US D S F LY Nas da qG S 378.3 14.86 11.4% -3.1% 7. 2% 70.0% 44.0% -10.2%
S K C ommunications C o., Ltd. KR W A066270 K OS E 314.0 9, 150.00 2. 1% -11.6% -21.5% 23.6% -12.9% -28.8%
S NA P Intera ctive, Inc. US D S TVI OTC B B 4. 3 0 -20.0% 0.0% -42.9% -57. 9% -55.1% -63.0%
S NM G loba l H oldings US D S NMN OTC P K 0. 0 0.01 185.7% 200.0% 300.0% 500. 0% -98.5% -99.4%
S ocial Media V enures , Inc. US D S MV I OTC P K 0. 0 0.08 -46.7% -57.9% 700.0% -93. 3% -85.5% -98.4%
S ocialwis e, Inc. US D S C LW OTC B B 21.7 0.49 -12.5% -27.9% -32.9% 22.5% -79.6% -80.8%
S ohu.com Inc. US D S O HU Nas da qG S 2,523.9 65.84 5. 1% 6.0% 2. 9% 47.9% 1. 1% -5.3%
S pa rk Networks , Inc. US D LO V A ME X 44.9 2 -3.1% -3.5% -6.8% -3.1% -47.5% -51.1%
S pectrumDNA, Inc. US D S P XA OTC B B 10.7 0 -2.2% 57.1% -40.5% 10.0% -62.7% -61.4%
T encent H oldings Ltd. HK D 700 S E HK 29,516.3 126 3. 0% 11.4% 40.3% 144. 2% 124.8% -3.7%
T he P a rent C ompa ny US D K IDS .Q OTC P K 0. 4 0.02 36.4% 0.0% -53.1% 400. 0% -99.1% -99.2%
T he9 L imited US D NC T Y Nas da qG S 205.0 8.17 5. 8% -3.9% -20.1% -36. 7% -56.4% -58.0%
T heS treet.com, Inc. US D TS CM Nas da qG M 81.1 2.65 9. 1% 11.6% 25.6% 29.3% -61.5% -63.2%
T ota l S port O nline AS NOK TOS O O T C NO 0. 1 0.03 0. 0% 0.0% 0. 0% -25. 0% -40.0% -40.0%
T ree.C om, Inc. US D TR E E Nas da qG M 84.6 7.83 4. 8% -14.6% -4.9% 63.5% -0. 5% -40.1%
U nis erve C ommunica tions C orp. C AD T S XV :U S S T S XV 1. 0 0.05 0. 0% 0.0% -25.0% -10. 0% -80.4% -82.0%
U nited O nline Inc. US D UNT D Nas da qG S 653.9 7.80 6. 6% 5.3% 22.4% 79.7% -26.1% -27.3%
U OMO Media , Inc US D UO MO OTC B B 11.7 0.14 -2.1% 1.5% -19.4% 95.7% -54.3% -87.1%
V alueC lick Inc. US D V C LK Nas da qG S 975.2 11.19 9. 0% 8.6% -5.7% 52.9% 1. 7% -9.7%
V OIS , Inc. US D V O IS OTC B B 3. 3 0.00 -20.0% -46.7% 14.3% 0.0% -73.3% -82.6%
W ebzen Inc. US D W ZE N Nas da qG M 34.9 2.94 1. 7% -4.2% -21.4% 74.7% 82.6% -37.2%
W izzard S oftwa re C orporation US D W ZE A ME X 27.8 0.55 27.9% 12.2% -17.9% 71.9% -59.3% -68.2%
W orlds .com Inc. US D W DDD OTC B B 5. 7 0.11 10.0% 10.0% 22.2% -42. 1% -68.6% -68.6%
W oozyF ly, Inc. US D W ZY F OTC B B 2. 6 0.15 0. 0% NM 0. 0% 0.0% NM -96.3%
W ynds torm C orporation US D W Y ND OTC P K 1. 8 0.10 0. 0% 0.0% 233.3% -16. 7% -83.3% -83.3%
XING A G E UR O1B C XT R A 252.7 32.85 1. 5% 19.0% -3.0% 17.4% 9. 2% -4.5%
Y edangO nline C orp. KR W A052770 K OS E 114.3 9,310 6. 6% 4.5% 1. 5% 33.0% 26.7% -24.9%
Y nk K orea Inc. KR W A023770 K OS E 18.5 4,240 -0.2% -13.8% -35.3% 21.5% -60.0% -65.8%
H igh 185.7% 650.0% 833.3% 650. 0% 671.9% -0.6%
L ow -46.7% -57.9% -76.3% -93. 3% -99.1% -99.4%
Average 746.1 2.1% 11.1% 37.1% 72.5% 1.5% -44.6%
Media n 0. 1% 0.0% 0. 8% 44.1% -24.8% -40.0%

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 Tic ker 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 Ma rketing U nited S ta tes OT C B B AC LZ 16. 8 4. 9x - - - - - -
Actoz S oft C o., Ltd. G aming S outh K orea K OS E A052790 127. 9 0. 9x - 3.8x - 18.6x - 2. 1x
AQ Interactive, Inc. G aming J apa n TS E 3838 31. 0 0. 1x - - - - - 0. 5x
As s ociated Media Holdings Inc. Mobile U nited S ta tes OT C P K AS MH 0. 6 15.6x - - - - - -
B igs tring C orp. Ins ta nt Mes s aging U nited S ta tes OT C B B BSGC 1. 2 35.1x - - - - - -
B etawave C orporation Media U nited S ta tes OT C B B B W AV 2. 0 - - - - - - 0. 4x
B eyond C ommerce, Inc. S ocial Networking U nited S ta tes OT C B B B YOC 9. 3 1. 3x - - - - - -
B right T hings plc S ocial Networking U nited K ingdom AIM AIM:B G T 6. 2 22.4x - - - - - -
B roadW ebAs ia Inc. S ocial Networking U nited S ta tes OT C P K BWBA 19. 5 - - - - - - -
C DC C orp. G aming H ong K ong Nas daqG S C HIN .A 293. 6 0. 8x 0. 9x 11. 5x 8.1x - - -
C hangyou. com L imited G aming C hina Nas daqG S C Y OU 2,229. 7 8. 1x 6. 3x 13. 3x 10.9x 15.3x 13.7x 15.1x
C hina G ateway C orporation Mobile U nited S ta tes OT C P K CGW Y 0. 3 0. 0x - - - - - -
C hines e G amer International G aming T aiwan GTS M G T S M:3083 1,137. 4 18.9x - 33. 7x - 43.5x - 16.4x
C LIC K E R Inc. Direct Ma rketing U nited S ta tes OT C B B CLK Z 0. 4 0. 2x - - - - - -
C ornerW orld C orpora tion C ontent U nited S ta tes OT C B B CW R L 5. 7 4. 1x - - - - - -
C yberplex Inc. Advertis ing C ana da TS X T S X:C X 77. 1 0. 6x 0. 5x 5.8x - 6. 8x 7. 7x 3. 0x
DADA S pA S ocial Networking Italy CM C M:DA 168. 2 0. 9x - 6.9x - - - -
DXN Holdings B hd S ocial Networking Ma lays ia K LS E DXN 38. 0 0. 7x - 4.8x - 6. 3x - 0. 8x
Dibz International, Inc. S N S Apps U nited S ta tes OT C P K DIB Z 0. 0 - - - - - - -
DigitalP os t Intera ctive, Inc. C ontent U nited S ta tes OT C B B DG L P 4. 2 6. 3x - - - - - -
DigitalT own, Inc. S ocial Networking U nited S ta tes OT C B B DG T W 41. 0 - - - - - - -
Dolphin Digital Media , Inc. S ocial Networking U nited S ta tes OT C B B DP DM 20. 2 36.3x 1. 3x - - - 1. 5x -
E olith C o. Ltd. G aming S outh K orea K OS E A041060 50. 7 3. 5x - - - - - 4. 7x
E xtens ions , Inc. C ontent U nited S ta tes OT C P K E XT I 8. 0 - - - - - - -
F luid Mus ic C ana da, Inc. Media U nited S ta tes TS X T S X:F MN 69. 4 11.6x 10.3x - - - - 6. 4x
F rogs ter Intera ctive P ictures AG G aming G ermany XT R A FR G 69. 2 20.1x - - - - - 9. 2x
G amania Digita l E nterta inment C o., L td. G aming T aiwan GTS M 6180 224. 3 1. 4x - 8.0x - 19.4x - 2. 9x
G ameO n C o L td. G aming J apa n TS E 3812 108. 3 0. 4x - 1.7x - 10.9x - 1. 3x
G eoS entric Oyj Mobile F inla nd HLS E G E O1V 65. 5 12.1x - - - - - 54.3x
G iant Intera ctive G roup, Inc. G aming C hina NY S E GA 1,705. 1 - - - - 2. 0x 13.6x 0. 3x
G igaMedia L td. G aming T aiwan Nas daqG S G IG M 263. 3 1. 0x 1. 0x - 4.8x 10.4x 9. 7x 2. 2x
G ravity C o., Ltd G aming S outh K orea Nas daqG M GR VY 47. 5 - - - - 0. 0x - 0. 0x
G ree, Inc. S ocial Networking J apa n TS E T S E :3632 2,153. 5 13.2x - 22. 0x - 46.2x - 21.4x
G ungHo O nline E ntertainment, Inc. Media J apa n OS E 3765 328. 0 2. 5x - 11. 2x - 71.7x - 24.7x
H anbitS oft, Inc. G aming S outh K orea K OS E A047080 72. 2 1. 0x - 42. 7x - 13.1x - 2. 1x
IAC /InterActiveC orp. Media U nited S ta tes Nas daqG S IAC I 2,568. 6 0. 6x 0. 6x 15. 7x 4.9x 12.1x 36.9x 1. 2x
IAS E nergy, Inc. V ideo C ana da OT C B B IA S A.E 10. 5 - - - - - - -
is eemedia Inc. C ontent C ana da T S XV IE E 2. 9 1. 2x - - - - - 2. 3x
J umbuck E nterta inment L imited S ocial Networking A us tralia AS X AS X:J MB 15. 6 0. 6x - 1.3x - 4. 5x - 1. 5x
K A B Dis tribution Inc. C ontent C ana da TS X T S X:K A B 84. 8 - - - - - - 1. 0x
K ings oft C o. L td. G aming C hina S E HK 3888 1,224. 3 8. 9x - 20. 2x - 24.4x - 6. 8x
L ingo Media C orporation Learning C ana da T S XV T S XV :L M 11. 6 8. 8x - - - - - 20.5x
L iveW orld Inc. S ocial Networking U nited S ta tes OT C P K LV W D 1. 2 0. 0x - - - - - 0. 5x
L ookS mart, Ltd. Direct Ma rketing U nited S ta tes Nas daqG M LO OK 20. 0 - - - - - - 0. 8x
Magnitude Information S ys tems Inc. S ocial Networking U nited S ta tes OT C B B MAG Y 4. 2 - - - - - - -
Mixi, Inc. S ocial Networking J apa n TS E 2121 947. 4 6. 1x - 18. 1x - 46.5x - 6. 4x
Modern T imes G roup Mtg AB Media S weden OM MT G B 2,725. 4 1. 7x - 10. 9x - 13.2x - -
MOK O.mobi L imited S ocial Networking A us tralia AS X MK B 5. 3 3. 2x - - - - - 3. 6x
Myria d G roup AG Mobile S witzerland SWX MY R N 91. 2 2. 4x - - - - - 3. 9x
N E OW IZ G ames C orporation G aming S outh K orea K OS E A095660 615. 4 3. 0x - 11. 1x - 32.8x - 16.6x
N etDragon W ebS oft, Inc. G aming C hina S E HK 777 394. 2 2. 9x - 9.9x - 16.1x - 2. 1x
N etea s e.com Inc. G aming C hina Nas daqG S NT E S 5,509. 7 - - - - 3. 1x 17.0x 0. 9x
N euL ion Incorporated V ideo C ana da TS X T S X:NLN 109. 5 4. 6x - - - - - 7. 9x
N eXplore C orporation C ontent U nited S ta tes OT C P K NXP C 33. 5 - - - - - - -
N gi G roup Inc. Media J apa n TS E 2497 40. 1 - - - - - - 0. 8x
N orthgate T echnologies Limited Direct Ma rketing India BSE 590057 31. 1 0. 4x - - - - - -
O pen T ext C orp. C ollabora tion C ana da Nas daqG S OT E X 2,003. 4 2. 6x 2. 2x 9.9x 8.2x 33.4x 12.7x -
O penwa ve S ys tems Inc. Mobile U nited S ta tes Nas daqG S OP W V 239. 6 0. 7x 0. 7x 24. 6x 5.9x - 44.8x 3. 5x
P erfect W orld C o. , Ltd. G aming C hina Nas daqG S PWRD 2,135. 5 0. 7x 3. 4x 1.2x 6.4x 3. 1x - 1. 4x
P N I Digita l Media Inc. Digital Ima ging C ana da T S XV T S XV :P N 59. 9 2. 7x 2. 3x 24. 7x 7.4x - 15.0x 20.6x
Q uepas a C orp. S ocial Networking U nited S ta tes OT C B B QP S A 22. 3 - - - - - - -
O AO R B C Information S ys tems Media R us s ia R TS R BCI 145. 7 0. 0x - 0.2x - - - -
S handa Interactive E ntertainment Ltd. G aming C hina Nas daqG S S N DA 3,433. 2 - - - - 2. 5x 13.1x 1. 0x
S hutterfly, Inc. Digital Ima ging U nited S ta tes Nas daqG S S F LY 378. 3 1. 4x 1. 4x 11. 5x 7.2x - - 2. 3x
S K C ommunications C o., Ltd. S earch S outh K orea K OS E A066270 314. 0 1. 7x - 25. 6x - - - -
S N AP Interactive, Inc. Da ting U nited S ta tes OT C B B STVI 4. 3 0. 8x - 2.9x - 7. 7x - 2. 4x
S N M G lobal H oldings Media U nited S ta tes OT C P K S NMN 0. 0 1. 1x - - - - - -
S ocial Media V enures , Inc. S ocial Networking U nited S ta tes OT C P K S MV I 0. 0 4. 5x - - - - - -
S ocialwis e, Inc. S ocial Networking U nited S ta tes OT C B B S CLW 21. 7 - - - - - - -
S ohu. com Inc. G aming C hina Nas daqG S S O HU 2,523. 9 4. 2x 3. 6x 9.6x 8.0x 14.9x 17.9x 4. 9x
S park N etworks , Inc. S ocial Networking U nited S ta tes AME X LO V 44. 9 0. 8x - 4.0x - 12.3x - 45.9x
S pectrumDNA, Inc. Media U nited S ta tes OT C B B S P XA 10. 7 - - - - - - -
T encent H oldings L td. P ortal C hina S E HK 700 29,516. 3 23.3x - 47. 6x - 60.3x - 26.8x
T he P a rent C ompany Media U nited S ta tes OT C P K K IDS . Q 0. 4 0. 2x 0. 2x - 12.9x - - -
T he9 L imited G aming C hina Nas daqG S NC T Y 205. 0 - - - - 2. 3x - 0. 1x
T heS treet. com, Inc. Media U nited S ta tes Nas daqG M TS CM 81. 1 0. 2x 0. 3x 8.5x - - - 1. 0x
T otal S port Online AS Media N orway OT C N O T OS O 0. 1 4. 6x - - - - - -
T ree.C om, Inc. P ortal U nited S ta tes Nas daqG M TR E E 84. 6 0. 4x - - 6.5x - 44.1x 1. 1x
U nis erve C ommunica tions C orp. S ocial Networking C ana da T S XV T S XV :US S 1. 0 0. 2x - - - - - -
U nited Online Inc. Media U nited S ta tes Nas daqG S UN T D 653. 9 1. 0x 0. 9x 4.5x 3.9x - 11.1x -
U OMO Media, Inc Media C ana da OT C B B UO MO 11. 7 14.1x - - - - - -
V a lueC lick Inc. Media U nited S ta tes Nas daqG S V C LK 975. 2 1. 5x 1. 6x 8.5x 6.0x - 17.5x 6. 3x
V O IS , Inc. S ocial Networking U nited S ta tes OT C B B V OIS 3. 3 - - - - - - 21.1x
W ebzen Inc. G aming S outh K orea Nas daqG M W ZE N 34. 9 - - - - 0. 0x - 0. 0x
W izzard S oftwa re C orpora tion P odca s ting U nited S ta tes AME X W ZE 27. 8 5. 4x - - - - - -
W orlds .com Inc. C ontent U nited S ta tes OT C B B W DDD 5. 7 - - - - 22.0x - -
W oozyF ly, Inc. S ocial Networking U nited S ta tes OT C B B W ZY F 2. 6 - - - - - - -
W ynds torm C orpora tion C ontent U nited S ta tes OT C P K W Y ND 1. 8 - - - - - - -
XING A G S ocial Networking G ermany XT R A O1B C 252. 7 3. 4x - 11. 9x - 26.1x - 8. 1x
Y eda ngO nline C orp. G aming S outh K orea K OS E A052770 114. 3 2. 2x - 10. 2x - 12.4x - 3. 9x
Y nk K orea Inc. G aming S outh K orea K OS E A023770 18. 5 1. 5x - 14. 4x - - - 0. 9x
H igh 29,516. 3 36.3x 10.3x 47. 6x 12.9x 71.7x 44.8x 54.3x
L ow 0. 0 0. 0x 0. 2x 0.2x 3.9x 0. 0x 1. 5x 0. 0x
Average 746.1 5.2x 2.2x 13.1x 7.2x 18.6x 18.4x 7.6x
Median 46. 2 1. 9x 1. 3x 10. 2x 6.9x 13.1x 13.7x 2. 7x

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 39 C hina 48,876.9 C hina 4, 887. 7 C hina 4,151.7 C hina 2,069.8 C hina 48. 8%
C a na da 10 United S tates 5, 384.6 S weden 2, 725. 4 United S tates 3,887.3 S weden 301.3 Aus tra lia 42. 8%
C hina 10 J a pa n 3, 608.3 J apan 601. 4 S weden 1,961.1 United S ta tes 290.4 T aiwan 36. 9%
S outh K orea 8 S weden 2, 725.4 T aiwan 541. 7 C a na da 1,016.3 C a na da 200.1 G ermany 28. 8%
J a pa n 6 C a na da 2, 372.5 Hong K ong 293. 6 S outh K orea 698.9 J apa n 189.4 J apan 24. 2%
T a iwa n 3 T a iwa n 1, 625.1 C ana da 237. 3 J a pa n 646.1 S outh K orea 120.4 S weden 15. 4%
Aus tra lia 2 S outh K orea 1, 377.0 S outh K orea 172. 1 T a iwa n 380.5 T a iwan 56.9 Mala ys ia 14. 4%
G erma ny 2 G erma ny 321.9 Italy 168. 2 Hong K ong 361.6 Italy 31.7 Italy 13. 1%
S witzerland 1 Hong K ong 293.6 G ermany 161. 0 Ita ly 241.1 Hong K ong 25.1 R us s ia 13. 1%
Hong K ong 1 Ita ly 168.2 R us s ia 145. 7 R us s ia 154.7 R us s ia 20.2 S outh K orea 12. 7%
F inla nd 1 R us s ia 145.7 United S ta tes 138. 1 India 82.1 Ma la ys ia 11.1 Hong K ong 6. 9%
Ita ly 1 S witzerland 91.2 S witzerland 91. 2 Ma lays ia 76.8 G erma ny 10.5 S witzerland 1. 9%
United K ingdom 1 F inla nd 65.5 F inland 65. 5 G erma ny 62.0 Aus tra lia 4.5 C ana da -8. 5%
India 1 Ma lays ia 38.0 Mala ys ia 38. 0 S witzerla nd 40.0 S witzerland 0.8 United S ta tes -21. 9%
S weden 1 India 31.1 India 31. 1 Aus tralia 17.9 Norwa y -1.1 India -50. 0%
R us s ia 1 Aus tra lia 20.9 Aus tra lia 10. 4 F inla nd 5.4 United K ingdom -1.9 Norway -50. 6%
Ma lays ia 1 United K ingdom 6.2 United K ingdom 6. 2 Norwa y 2.3 F inla nd -17.4 United K ingdom #DIV /0!
Norwa y 1 Norwa y 0.1 Norway 0. 1 United K ingdom 0.3 India -41.1 F inland #DIV /0!

G rand Total 90 G rand Total 67,152.1 G rand Total 746.1 G rand Total 13,786.1 G rand Total 3,270.8 G rand Total 6.0%

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 19 S E HK 31,134.8 S E HK 10, 378. 3 OM 1,961.1 Na s da qG S 1,796.3 NY S E 62. 5%

Na s daqG S 14 Na s daqG S 23,413.0 OM 2, 725. 4 S E HK 539.9 S E HK 767.3 AS X 42. 8%
OT C P K 11 TS E 3, 280.3 NY S E 1, 705. 1 Na s daqG S 498.6 OM 301.3 S E HK 40. 6%
K OS E 6 OM 2, 725.4 Nas da qG S 1, 672. 4 CM 241.1 TS E 163.1 GTS M 36. 9%
TS E 5 NY S E 1, 705.1 GTS M 680. 9 NY S E 198.5 NY S E 124.1 Nas da qG S 30. 4%
Na s daqG M 5 GTS M 1, 361.7 TS E 656. 1 RTS 154.7 K OS E 101.9 XT R A 28. 8%
TS X 4 K OS E 1, 294.6 OS E 328. 0 OS E 118.2 GTS M 56.9 TS E 24. 6%
T S XV 4 TS X 340.9 K OS E 215. 8 TS E 105.6 CM 31.7 OS E 22. 2%
S E HK 3 OS E 328.0 CM 168. 2 K OS E 104.7 OS E 26.3 OM 15. 4%
AME X 2 XT R A 321.9 XT R A 161. 0 GTS M 98.5 R TS 20.2 K LS E 14. 4%
AS X 2 Na s daqG M 268.1 R TS 145. 7 Na s daqG M 82.2 Na s da qG M 15.4 CM 13. 1%
XT R A 2 OT C B B 198.0 SWX 91. 2 BSE 82.1 K LS E 11.1 R TS 13. 1%
GTS M 2 CM 168.2 TS X 85. 2 K LS E 76.8 XT R A 10.5 K OS E 9. 6%
SWX 1 RTS 145.7 HLS E 65. 5 TS X 46.7 AME X 6.2 Nas da qG M 7. 7%
HL S E 1 SWX 91.2 Nas da qG M 53. 6 SWX 40.0 AS X 4.5 T S XV 5. 6%
CM 1 T S XV 75.4 K LS E 38. 0 XT R A 31.0 SWX 0.8 SWX 1. 9%
BSE 1 AME X 72.6 AME X 36. 3 AME X 27.9 O T C NO -1.1 AME X -31. 8%
NY S E 1 HL S E 65.5 BSE 31. 1 OT C P K 16.5 AIM -1.9 TS X -34. 7%
OS E 1 OT C P K 65.3 T S XV 18. 9 T S XV 12.1 TS X -4.2 OT C B B -38. 8%
AIM 1 K LS E 38.0 AS X 10. 4 AS X 8.9 T S XV -4.6 OT C P K -41. 5%
OM 1 BSE 31.1 OT C B B 10. 4 HL S E 5.4 HL S E -17.4 BSE -50. 0%
RTS 1 AS X 20.9 AIM 6. 2 OT C B B 2.3 OT C P K -34.1 O T C NO -50. 6%
K LS E 1 AIM 6.2 OT C P K 5. 9 O T C NO 2.3 BSE -41.1 HLS E #DIV /0!
O T C NO 1 O T C NO 0.1 O T C NO 0. 1 AIM 0.3 OT C B B -62.4 AIM #DIV /0!

G rand Total 90 G rand Total 67,152.1 G rand Total 746.1 G rand Total 13,786.1 G rand Total 3,270.8 G rand Total 6.0%

Figure 22. Comparison by Exchange

Source. Capital IQ
 Page 18

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

F in. Amount (Million) Type of financing
Month C ompany Name C ountry Angel/S eed S eries A S eries B S eries C S eries D Grand Total
J ul-09 P andora Media US A 35.0 35.0
K ontera L td. Is rael 15.5 15.5
Ning US A 15. 0 15.0
QuickP lay Media C anada 12. 0 12.0
C aus es US A 10.0 10.0
Outs park US A 8. 3 8.3
C onnectE du US A 8. 2 8.2
Acquia, Inc US A 8.0 8.0
S B Nation US A 8.0 8.0
MediaMath US A 6.6 6.6
Metavers um G ermany 6.3 6.3
iMemories US A 6.2 6.2
Invodo US A 6.0 6.0
J ambool US A 5.0 5.0
Quikr India P vt. L td. India 4.1 4.1
OP E N S ports network US A 4.0 4.0
S tyleC as ter US A 4. 0 4.0
Nexage US A 4.0 4.0
TweetDeck UK 3.2 3.2
B us ca US A 2.6 2.6
Akademos US A 2.5 2.5
P rotonMedia US A 2. 5 2.5
iL oop Mobile US A 2.0 2.0
C omunitae S pa in 1.7 1.7
Aloqa G ermany 1.5 1.5
L at49 C anada 1. 5 1.5
Thread US A 1.2 1.2
Tributes .com US A 1.2 1.2
C oTweet US A 1. 1 1.1
C ellufun US A 1.0 1.0
C likthrough US A 1. 0 1.0
C ognitive Match L imited UK 1. 0 1.0
B ookF res h US A 0.5 0.5
P eople C apital US A 0.5 0.5
Mas her Media US A 0.3 0.3
J ul-09 Total 65.0 11.1 36.8 51.5 27.0 191.4

Aug-09 Turbine US A 50. 0 50.0

S mith & Tinker US A 29.0 29.0
Mint US A 14.1 14.1
R ichR elevance US A 12.5 12.5
Traffiq US A 10.0 10.0
MediaMath US A 10.0 10.0
B ill.com US A 8. 5 8.5
E do Interactive US A 8.5 8.5
InnoC entive US A 7.3 7.3
OneR iot US A 7. 0 7.0
B alihoo US A 7. 0 7.0
B oxee US A 6.0 6.0
P olyvore US A 5.6 5.6
F anbas e US A 5. 0 5.0
MOG US A 5. 0 5.0
Z2L ive US A 3. 0 3.0
OurS tage US A 3.0 3.0
K ODA US A 3.0 3.0
S coreloop G ermany 2.8 2.8
R oblox US A 2.2 2.2
iS ocket US A 2. 0 2.0
Tremor Media US A 2. 0 2.0
R ights F low US A 1. 5 1.5
P lis ta G ermany 1.4 1.4
C hes s C ube S outh Africa 1.3 1.3
L inks ify US A 0.5 0.5
iS yndica US A 0.4 0.4
Aug-09 Total 25.8 11.5 77.6 43.6 50.0 208.5

S ep-09 InXpo US A 9. 0 9.0

J obvite US A 8.3 8.3
R iot G ames US A 8.0 8.0
YuMe US A 5. 0 5.0
Mas hL ogic US A 2. 5 2.5
G reys tripe US A 2. 0 2.0
F ourS quare US A 1. 4 1.4
E duF ire US A 1. 3 1.3
S ep-09 Total 14.2 16.3 7.0 37.4

G rand Total 90.8 36.8 130.6 102.1 77.0 437.2

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 c ription
E duFire U nited S tates www. edufire. com E ducation R evolution, Inc. operates a s an online community tha t provides online live video tutoring s ervices . It offers tutoring s ervices for
s tudents covering various la nguages a nd preparing s tudents for exams on video chat s es s ions . T he company wa s founded in 2007 and is
ba s ed in S anta Monica, C alifornia.

F ourS quare U nited S tates www. fours quare. com F ours quare S olutions Inc. des igns and develops s oftwa re for iphones . F ours quare S olutions Inc. is bas ed in New Y ork, New Y ork.
G reys tripe U nited S tates www. greys tripe. com G reys tripe, Inc. operates an a d-s upported mobile games and applications dis tribution platform. T he company provides online gaming and in-
ga me a dvertis ing s olutions through publis her s ites . Its AdW R AP product s uite ena bles brand advertis ers to communicate their brand
mes s a ges to mobile a udience; publis hers to s erve a ds through their games ; and cons umers to downloa d games , as well a s delivers images ,
videos , a nd s crolling banners to mobile games and applications . T he compa ny’s s olutions a ls o include AdW R AP C ampaign Manager, an
advertis ing W eb interface that allows advertis ing agencies and ad res ellers to create and monitor mobile in-game ad ca mpaigns ; AdW R AP
C atalog P rogra m, which enables partners to dis tribute a mobile game catalog; and AdW R AP for P ublis hers platform that provides mobile
ga me publis hers an automated proces s , which a d-enables mobile games a nd applications . It s erves developers , carriers and dis tributors ,
ga me players , a nd cons umer W eb s ites . T he company is bas ed in S an F rancis co, C alifornia.

HiveL ive U nited S tates www. hivelive. com HiveL ive Inc. provides enterpris e s ocial s oftware platforms . T he company’s on-demand s oftware enables companies to deploy cus tom-fit
enterpris e communities built around people, relations hips , and s hared knowledge. It offers L iveC onnect, provides a building-block approach
for crea ting cus tom-fit online cus tomer communities ; and Hives , which are W eb 2. 0 building blocks that combine people, information, and
permis s ions to crea te information res ources . HiveL ive Inc. was founded in 2006 and is bas ed in B oulder, C olorado.
InXpo U nited S tates www. inxpo. com InX po is the leading provider of privately-branded virtual events , including V irtua l T rade S hows , V irtual C a reer F airs and V irtual C orporate
E vents , as well as Audio a nd V ideo W ebcas ts . T hes e virtua l s olutions dramatically reduce tra vel time and related cos ts , in addition to
making the world a greener place to live. InX po’s V irtual E vents provide P ublis hers with new online revenue opportunities and C orporations
with the ability to generate leads , communica te, educate and network by connecting more effectively with their communities .
J obvite U nited S tates www. jobvite. com J obvite, Inc. offers recruitment application that allows to collaborate on making hires . It s erves HR and s taffing executives , recruiters , hiring
mana gers , executives , employees , and jobs eekers . T he compa ny was founded in 2003 as F orumJ obs and changed its name to J obvite, Inc.
in 2006. J obvite, Inc. is ba s ed in S an F rancis co, C alifornia.

Mas hL ogic U nited S tates www. mas hlogic. com Mas hL ogic Inc. offers mas hes to pers onaliz e the applications for the us ers and bloggers . It adds releva nt links to W ebs ites , pers ona lizes
W eb pages , increas es vis ibility and rea ch of content and brand, and enriches W eb with links to s ources . T he company was founded in 2007
and is bas ed in Menlo P a rk , C alifornia.
Mint.c om U nited S tates www. mint. com Mint S oftwa re, Inc. provides a W eb-bas ed s olution for online financial management. It offers money management, debt management,
expens e tracking, inves tment management, budget management, mutua l fund, IR A management, and financial planning s ervices . T he
company als o provides s ugges tions bas ed on us er’s s pending patterns and automatic categorization of purchas es . Mint S oftware, Inc. was
founded in 2006 and is bas ed in Mountain V iew, C alifornia.
NowP ublic C anada www. nowpublic. com NowP ublic T echnologies , Inc. , a participatory news network, owns and operates NowP ublic. com platform for citiz en journalis m. T he
company provides politics , culture, entertainment, and life photos and video headlines . It s erves Internet us ers , bloggers , and photography
enthus ias ts . T he company was founded in 2005 and is bas ed in V ancouver, C anada. As of S eptember 2, 2009, NowP ublic T echnologies ,
Inc. operates as a s ubs idiary of T he W as hington E xaminer.
R iot G ames U nited S tates www. riotgames . com R iot G a mes , Inc. develops and publis hes online video games . It offers online titles for cons oles and the P C s . T he company was founded in
2006 and is bas ed in L os Angeles , C alifornia.
S kype L uxembourg www. s kype. com S kype T echnologies S . A. provides S kype, a s oftware that enables individuals and bus ines s es to mak e free video and voice calls , s end
ins tant mes s ages , a nd s hare files with other S kype us ers . It a ls o enables to make calls to landlines and mobiles internationally. T he
company als o provides heads ets , W ebcams , and phones through its online s hop. It s erves us ers in Argentina , B raz il, C hile, C olombia,
Mexico, P eru, and V enezuela. T he company was founded in 2003 a nd is bas ed in L uxembourg. As of October 14, 2005, S kype T echnologies
S . A. is a s ubs idiary of eB ay Inc.
Tiny P ic tures U nited S tates www. tinypictures . us T iny P ictures , Inc. provides a s ervice for s ha ring of camera phone pictures a nd videos between friends . It offers R a dar, a s ervice that
enables us ers to s hare camera phone pictures and videos with friends . T he company was founded in 2005 and is bas ed in S a n F ra ncis co,
C alifornia. As of S eptember 10, 2009, T iny P ictures , Inc. operates as a s ubs idia ry of S hutterfly, Inc.
YuMe U nited S tates www. yumenetworks . com Y uMe, Inc. operates as a video a dvertis ing network on W eb. It offers ad mana gement s ys tem that enables advertis ers a nd publis hers to
identify, clas s ify, and track content through digita l media pla tforms , s uch as W eb, downloads , mobile, and IP T V . T he company als o enables
publis hers to organiz e video on their s ite into content channels , s uch as automotive, financial s ervices , lifes tyle, news , mus ic, s ports ,
entertainment, and family friendly. In addition, it offers real-time targeting, meas urement, and optimization; content dis tribution and viral
advertis ing opportunities ; a s uite of interactive ad placements ; and video monetiz ation s ervices . F urther, the company provides a behavioral
targeting s ys tem tha t enables a dvertis ers to target their mes s ages to viewers on a nationa l s cale bas ed on video viewing interes ts and
purchas e intent. Y uMe, Inc. was founded in 2004 and is headquartered in R edwood C ity, C alifornia.

Figure 24. Company Descriptions

Source. Company reports, Capital IQ, Crunchbase
 Page 20

RELEVANT DISCLOSURES APPLICABLE TO: NONE

LIST OF DISCLOSURE TERMS:

1. None applicable.

ANALYST CERTIFICATION
Each analyst of 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.

I n f o r ma t i o n a b o u t 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 s t 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 ch t o cl 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 m me n d a t i o n s wh i c h a r e i n e a c h
o f o u r r a t i n g c a t e g o r i e s i s a v a i l a b l e o n o u r we b si t e a t ww w. r e s e a r ch c a p i t a l . c o 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 ve d t o b e r e l i a b l e b u t i t s a c cu r a c y o r co mp l e t e n e ss 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 R e s e a r c h Ca 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 l i t y . 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 ct 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 cu r i t i e s me n t i o n e d h e r e i n . Co 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 ss e d p e r mi s si o n o f R e se a r ch
C a p i t a l C o r p o r a t i o n . ( U . S . I n s t i t u t i o n a l Cl i e n t s — Re s e 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 R e s e a r c h C a p i t a l Co r p o r a t i o n ) a cc 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 ce i vi n g t h i s r e p o r t s h o u l d e f f e ct t r a n s a ct i o n s i n s e c u r i t i e s d i sc u s se d
i n t h e r e p o r t t h r o u g h R e s e a r ch C a p i t a l U . S . A . I n c. , a B r o k e 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 cu r i t i e s a n d E xc h a n g e C o m mi s si o n ) .

Tor on to 4 16. 8 60. 76 00 M ontr eal 51 4. 39 9. 150 0 V anco u ver 60 4. 66 2. 180 0 C al gar y 40 3. 26 5. 740 0 R egi na 306. 566. 7550

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