Professional Documents
Culture Documents
09-09-22 Web 2.0 Weekly
09-09-22 Web 2.0 Weekly
09-09-22 Web 2.0 Weekly
Deal flow picks up: Total transaction value in the W eb 2.0 universe for September nearly doubled to $74.2 million,
up from $37.4 million last week. Another 4 financings were announced this week, bringing the month-to-date total to
13 transactions averaging $5.7 million each (compared with 9 trades averaging $4.7 million last week). The largest
transaction stands at $20 million for Ensequence (provider of software and services to manage interactive television
content). Deal flow in prior months was as follows: August, $208.5 million, averaging $7.7 million over 27 deals; July,
$191.4 million, averaging $5.5 million over 35 deals; and June, $204.7 million, averaging $4.9 million over 42 deals.
Broad-based price improvement: Twenty-nine of the companies in our universe had positive stock price
performances over the past week (for stocks with prices greater than $1) while twelve companies showed negative
one-week returns. Volatile price swings continue for DigitalTown (OTCBB:DGTW ), rising 76% this week following a
14% decline the previous week. Frogster International (XTRA:FRG) experienced the largest decline at -8.8%.
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
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 )
Deal flow picks up: Total transaction value in the W eb 2.0 universe for September nearly doubled to $74.2 million, up
from $37.4 million at time of publication last week. This week has brought another four financings to the sector, bringing
the month-to-date total to thirteen transactions averaging $5.7 million each (compared with our month-to-date average of
$4.7 million last week over nine transactions). The largest transaction is a $20 million financing of Ensequence (provider of
software and services to manage interactive television content). The Ensequence trade exceeds the previous transaction
value high in September set by the $9 million financing of InXpo (Virtual Worlds). In comparison, total capital raised in
August was $208.5 million, averaging $7.7 million (27 deals); for July (35 deals) $191.4 million, averaging $5.5 million; and
June (42 deals) was $204.7 million (averaging $4.9 million).
400.0 18.0
16.2
16.0
350.0
14.6
14.0
300.0
12.0
250.0
9.7
10.0
(US$m)
(US$m)
200.0
7.9
8.0
7.0 7.0 7.1
6.5 6.6
150.0 6.2
5.7
5.5 6.0
4.9
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
Quiet After Mint: Following Intuit’s acquisition of Mint.com for $170 million last week, financing and M&A headlines were
more muted with the $20 million series D financing of Ensequence making the top headline in the W eb 2.0 space. Fwix, a
local news search application developer, announced a $2.8 million series A raise. NextBio, a life sciences collaboration
products company, announced $8.0 million in series C financing. Finally, Mocapay, a mobile payments services concern, is
raising $3 million in a series C financing. For additional details on financings, see Figures 23 and 24 (at end of note).
200.0
180.0
160.0
140.0
120.0
Sep-09
(US$m)
100.0 Aug-09
Jul-09
80.0
60.0
40.0
20.0
0.0
Fwix
xoopit
Pandora Media
MediaMath
QuickPlay Media
InXpo
NextBio
HiveLive
Invodo
Boxee
Polyvore
Nexage
Z2Live
ProtonMedia
iLoop Mobile
Greystripe
iSyndica
Masher Media
Mocapay
Roblox
MOG
StyleCaster
Mint
RightsFlow
CoTweet
Skype
People Media
Turbine
Friends Reunited
AdLink Internet Media
Ensequence
iLike
Ning
Zoove
RichRelevance
Traffiq
Edo Interactive
Jobvite
ConnectEdu
SBNation
InnoCentive
Balihoo
YuMe
Fanbase
OurStage
Scoreloop
Busca
Tremor Media
Aloqa
Lat49
Plista
FourSquare
EduFire
ChessCube
Thread
Clikthrough
Cognitive Match Limited
Cellufun
BookFresh
Super Rewards
NowPublic
MashLogic
Tiny Pictures
Linksify
Metaversum
Kontera Ltd.
OneRiot
KODA
iSocket
People Capital
Comunitae
Causes
Outspark
Acquia, Inc
iMemories
Conduit Labs
Gigpark
Bill.com
Tributes.com
Smith & Tinker
Jambool
Riot Games
Akademos
Advertising remains the most active sector: Advertising-related companies continue to see the most activity by number
of transactions (10), followed by Social Networks (9), and Gaming (8) (Figure 4). The $2.0 billion acquisition of Skype
skews the dollars transacted to the SMS/Voice segment, while the $170 million acquisition of Mint brings the Vertical
Communities segment to the second highest total.
200.0
180.0
160.0
140.0
120.0
(US$m)
100.0
80.0
60.0
40.0
20.0
2,025.0 197.5 100.1 98.5 85.0 80.0 73.9 64.5 40.0 38.2 37.3 20.7 13.2 12.5 12.0 10.0 8.6 8.0 8.0 7.0 5.0 4.1 4.0 3.2 2.8 1.0 0.5 0.5
0.0
Comment/Reputation
Communities
Gaming
Online Dating
Online Calendar
Mobile
Online Learning
Enterprise
Media
Collaboration
Microblog
Online Lending
Music
SMS/Voice
Infrastructure
Advertising/Mobile
Blog
Search
Classified
Mobile Ad
Social Networks
Virtual Goods
Advertising
Virtual World
Video
Crowdsourced
Aggregation
Analytics
Vertical
Content
# companies
1 5 10 8 9 1 5 5 5 5 3 5 1 1 3 3 2 1 1 1 1 1 2 1 1 1 1 1
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).
160
140
120
100
80
60
40
20
0
9/22/2008
10/6/2008
10/20/2008
11/3/2008
11/17/2008
12/1/2008
12/15/2008
12/29/2008
1/12/2009
1/26/2009
2/9/2009
2/23/2009
3/9/2009
3/23/2009
4/6/2009
4/20/2009
5/4/2009
5/18/2009
6/1/2009
6/15/2009
6/29/2009
7/13/2009
7/27/2009
8/10/2009
8/24/2009
9/7/2009
9/21/2009
Index: Web 2.0 (Market Cap) ^COMP - Share Pricing
Broad-based price improvement: Twenty-nine of the companies in our universe had positive stock price performances
over the past week (for stocks with prices greater than $1) (Figure 6) while twelve companies showed negative one-week
returns. Volatile price swings continue for DigitalTown (OTCBB:DGTW ), rising 76% this week following a 14% decline the
previous week. Frogster International (XTRA:FRG) experienced the largest decline at -8.8% for the week.
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
Compa ny Headline Notes
S hutter fly, Inc . (Nas da qGS : S F LY ) S hutte rfly Inc . Appoints B ria n S we tte to the B oa rd O n S eptember 8 , 20 09, B rian S wette wa s appointed to the B oa rd of D irec tors of S hutterfly Inc . Mr. S wette will a ls o s erv e on the A udit
C ommittee of the B oa rd. M r. S we tte has s erved on the B oard of B urge r K ing s ince 2 003, a nd be ca me Non -E xe cutive C ha irma n in 20 06. Mr.
S wette a ls o s erv es on the B o ard of Dire ctors for J amba Ju ice, C B L P artners , F R S C o mpa ny a nd C a re . com.
S hutter fly, Inc . (Nas da qGS : S F LY ) Jo hn P ois son to J oin in S hutterfly, Inc S hutterfly I nc . an nounc ed tha t it has a cquired T iny P ic tures . T iny P ictures 's found er and C E O , J ohn P ois s on, a long with the T iny P ictures
te am, will join S h utte rfly.
C or nerW or ld C or poration C ornerW orld C orpora tion R eports E a rning s R es ults for C orn erW orld C orpora tion reported earnings res ults for the firs t quarter e nde d J uly 3 1, 2 009 . F or th e quarter, the compa ny reported net los s
(O TC B B : C W R L ) the F irs t Q ua rte r E nded J uly 31 , 20 09 of $33 4, 5 55, down $107 , 57 1 for the sa me qua rter the prev ious ye a r 20 08.
G iant Inte rac tiv e G roup, Inc . Gian t Interac tive Group I nc. A ppoints E rns t & Y oung Hua G iant Inte ra ctiv e G roup Inc. 's sha reho lde rs res olutions a dopted a t its a nnua l gene ra l mee ting of s hareholders held in S ha ngha i on
(NYS E : GA) Ming a s the C ompa ny's I ndependent Auditors S eptember 11 , 20 09. T he c ompa ny 's s hareholders a ppo inted E rns t & Y oung Hua M ing as th e compa ny' s ind epe nden t au ditors for the f is c al
year e nding D ecember 31 , 20 09.
C M C a pita l Inv es tments ; Myri ad G roup My riad G roup A G ( S W X : M Y R N ) a c quire d Xumii, Inc. Myria d G roup AG (S W X: MY R N ) ac qu ired X umii, Inc . on S eptember 15 , 20 09. T he f ina ncia l terms of the de a l were not dis c los ed. A ll 17
AG (S W X : MY R N); S outhe rn C ros s employees o f Xu mii will be pa rt of Myria d G roup. T he tra ns ac tion is not ex pec te d to ha ve a ma teria l impa ct to Myria d re venue or E B IT DA for
V enture Par tners ; Xumi i, Inc. the full fis ca l yea r 2009 .
Myria d G roup AG (S W X: MY R N ) completed the ac quis ition of Xumii, Inc. on S eptember 15 , 20 09.
L ookS mart, L td. (Nas da qG M: L O O K ) S ta ce y G ia malis to Le a ve L ook S ma rt L td. as G ene ra l O n S eptember 9 , 20 09, S ta cey G iama lis , G eneral C ouns el a nd S enior V ice P res ident, a nd L ook S ma rt Ltd. determined tha t Ms . G ia malis
C ounse l a nd S en ior V ice P re sident would s epara te from the C o mpany ef fec tive S e ptembe r 15, 200 9.
IA S E ne rgy, I nc . (O T C B B : IA S A.E ) IAS E ne rgy, Inc. a nnou nc ed delay ed 1 0-Q filing O n 0 9/1 5/20 09, IA S E ne rgy, Inc . a nno unc ed tha t the y will be una ble to file the ir next 10-Q by the de a dline requ ired by the S E C .
K ings oft C o. L td. (S E HK : 38 88) K ings oft C o. Ltd. R e ports E arnings R e sults f or the F irs t K ings oft C o. Ltd. reporte d ea rnings res ults for th e first ha lf of 20 09. F or the firs t ha lf, the company reaped total revenues of C NY 476 million,
Ha lf of 200 9 ris ing 37% yea r on yea r. G ross profit arriv ed a t C N Y 417 million, jumping 40% from firs t half of 200 8. G ros s ma rgin reache d 88 % .
IA S E ne rgy, I nc . (O T C B B : IA S A.E ) IAS E ne rgy D ele ted F ro m OT C B B IA S E nergy, Inc' s common s toc k ha s been delete d from O T C B ulletin B oard effe ctiv e S eptember 16 , 20 09 on a ccount of its fa ilure to comply
with N AS D 6 530. T he compa ny ha s been added to NB B .
NetDr agon W e bS oft, Inc. (S E HK : 77 7) NetDra gon W ebS oft Inc . La unches Demon R ising Ne tDragon W e bS o ft I nc. an nou nc ed the la unc h of Demon R is ing, a n ew C h ine se ex pans ion pac k for its fla gs hip E u demons O nline ga me.
De mon R is ing marks the fifth E P re lea s ed f or E udemons O n line s inc e the g ame wa s initia lly la unc hed in J une 200 6, a nd will introduce a
s erie s of six co mpre hens ive insta nc ed a ctivities .
IB 3 Network s , Inc . (O T C B B : IB NW ) IB 3 Networks I nc . T ermin ates J ulia C ooper a s V P of E ffe ctive S eptember 14 , 20 09, Ju lia C oope r was termina ted as V P of S ales a nd O pe ra tions of IB 3 Ne twork s Inc.
S a les a nd O pera tions
T ence nt Holdings Ltd. (S E HK : 700) T enc ent A ggres s ively S couting F or O verse a s M& A T he P re sident of T ence nt H olding s Ltd. , C hi-ping L a u s a id that the compa ny will a cc elerate the pace of its merge a nd a cquis ition and may
cond uct direct inves tment a nd joint inve stme nt to ex pa nd overs eas . L au noted tha t Te nc ent will ke ep scouting for pote ntia l foreign M& A
opportunities a nd h as a lrea dy o pene d repre se ntative o ffice s in V ietna m, India , S outh K orea, a nd the U. S . T e nc ent would lik e to s eiz e
opportunities in the g loba l fina ncia l meltdown and pa rtner with other c ompanie s in re la ted f ie lds tha t ha s grea t potentia l, sa id La u. Howe ve r,
T ence nt will not lower its crite ria for potentia l M &A de a ls a t a time when mo re and more M& A opportun ities a re being thrown up bec aus e of
the global fin ancial crisis . T he firm will e xa mine the fe a s ibility o f the de a ls by ev alua ting its o wn te chnology , tale nt a nd bus in es s performance ,
ac cording to L au.
L ogic a ; O pen T ext C orp. Open T e xt C orp. E x tends P a rtners hip with L ogica O pe n T ex t C orp. ha s extende d its pa rtners hip with L ogica , with L ogic a joining th e O pen T ex t G lo ba l P a rtne r P rogra m for S A P C ompe tence .
(Nas da qG S : O T E X ) Under th e ag re ement, Logica will deliv er a nd s upport the O pe n T ex t E nte rpris e C ontent Ma nagement (E C M) s uite for S A P s olutions. T he
compa nie s, togethe r with S AP , will colla bora te on the implementa tion o f joint mark et o fferings , bas ed on the O pen T e xt E C M s uite for S A P
s olutions , in co njunction with a range of cons ulting, s ys tems integra tion, a pplica tio n mana gement and manag ed operation s ervices from
Lo gica .
O penwav e S ys tems Inc . Openwa ve S ys tems Inc . - C onfe re nce P res entation C a ll T o pres ent outlining c ompa ny's vis ion for produc ts , ma rk ets a nd growth stra tegy
(Nas da qG S : O P W V)
T re e.C om, Inc . (N as daqG M: T R E E ) T re e.C om I nc. an d M ortech I nc. R e solve L aws uit T ree. C om Inc. and Morte ch Inc. hav e res olv ed their laws uit to the mutu al s atisf ac tio n of both partie s, a nd the la ws uit ha s been dismiss ed.
Dolby L a boratori es Inc. (NY S E : DL B ); Gian t Interac tive to U tiliz e Dolby(R ) A xon 3D V oice G iant Inte ra ctiv e G roup Inc. a nnounced tha t it will integra te Dolby(R ) A xon, th e 3D voice technolog y developed by Do lby L a bora tories I nc. ,
G iant Inte rac tiv e G roup, Inc . T echnology in ZT Online into its f la gs hip ma s sively multipla ye r online role playin g ga me (MMO R P G ) ZT O nline . Z T O nline will incorporate Dolby A xon 3D voice to
MO K O .mobi L i mited (AS X : MK B ) MO K O .mobi L imited R eports R eturn on E qu ity R e sults MO K O .mobi Limite d (L oo p M obile) reported return on e quity res ults for th e year e nded J une 30, 200 9. for the ye a r, th e compa ny re ported
for the Y ea r E nde d J un e 30 , 20 09 los s on equity of 271 . 2% and los s on as s ets o f 18 4. 3% c ompared to los s on equity of 18 3. 5% and lo ss o n as s ets of 1 50. 4 % for the sa me
VALUATION
Online Gaming companies lead market-cap charts: Fifteen companies in our W eb 2.0 universe top US$1 billion in
market capitalization (Figure 8), up from thirteen last week. Fifty-eight of the ninety-one companies have market caps
under US$100 million, with 37 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. 29985.0
Neteas e.c om Inc . 5667.6
S handa Interac tive Entertainment 3574.1
Modern Times Group Mtg A B 2974.2
IA C/InterA ctiv eCorp. 2731.5
S ohu.c om Inc . 2639.7
G ree, Inc . 2394.2
Open Tex t Corp. 2215.1
Perf ec t W orld Co., L td. 2163.0
Cha ngyou. com L imited 2106.0
Gia nt Interac tive Group, Inc . 1750.4
Chines e G amer Interna tional 1187.8
K ings of t Co. Ltd. 1141.2
V a lueClic k Inc . 1109.5
Mix i, Inc . 1002.2
NEOWIZ G ames Corpora tion 732.8
United Online Inc . 692.5
S hutterf ly, Inc . 450.8
NetDragon WebS oft, Inc . 394.2
S K Communic ations Co., Ltd. 323.4
G iga Media Ltd. 303.7
GungHo Online Entertainment, Inc . 302.3
CDC Corp. 294.6
XING A G 253.5
Ga ma nia Digita l Enterta inment Co., 242.1
Openw a ve S y s tems Inc . 225.4
The9 L imited 212.3
DA DA S pA 165.4
OA O R B C Information S y s tems 160.9
A ctoz S of t Co., Ltd. 142.6
Y edangOnline Corp. 112.1
Ga meOn Co Ltd. 105.8
NeuL ion Incorpora ted 98.3
My ria d Group A G 92.0
Tree. Com, Inc . 84.2
TheS treet.c om, Inc . 83.2
Cy berplex Inc . 76.6
HanbitS oft, Inc . 73.6
Digita lTow n, Inc . 72.2
Fluid Mus ic Canada, Inc . 68.0
GeoS entric Oyj 65.9
Frogs ter Interac tive Pic tures A G 63.5
PNI Digita l Media Inc . 59.9
Grav ity Co., Ltd 54.2
Eolith Co. Ltd. 52.6
S pa rk Netw orks , Inc . 45.3
DXN Holdings B hd 39.8
Webz en Inc . 36.2
Ngi Group Inc . 36.0
A Q Intera ctiv e, Inc . 31.0
Northgate Tec hnologies L imited 31.0
NeXplore Corpora tion 30.7
S ocia lw is e, Inc . 25.7
Wiz z a rd S oftw are Corpora tion 23.2
Quepa s a Corp. 22.1
LookS mart, L td. 21.9
Dolphin Digita l Media, Inc . 21.5
B roa dWebA s ia Inc . 19.5
Y nk K orea Inc . 18.7
A c celeriz e New Media, Inc . 18.2
J umbuc k Entertainment L imited 16.8
Lingo Media Corpora tion 11.5
Ex tens ions , Inc . 11.1
S pec trumDNA , Inc . 10.7
IA S Energy, Inc . 10.6
UOMO Media , Inc 10.5
B eyond Commerc e, Inc . 7.9
B right Things plc 6.0
CornerWorld Corpora tion 5.7
S NA P Intera ctiv e, Inc . 5.4
MOK O.mobi L imited 5.2
Worlds .c om Inc . 5.2
Digita lPos t Intera ctiv e, Inc . 4.6
Ma gnitude Inf orma tion S y s tems Inc . 4.5
is eemedia Inc . 4.3
V OIS , Inc . 2.5
B eta w av e Corpora tion 2.0
W ynds torm Corpora tion 1.8
LiveWorld Inc . 1.5
B igs tring Corp. 1.1
Unis erv e Communic ations Corp. 0.9
K A B Dis tribution Inc . 0.6
A s s oc iated Media Holdings Inc . 0.6
CL ICK ER Inc . 0.4
China Ga tew a y Corpora tion 0.3
The Parent Company 0.2
Tota l S port Online A S 0.1
S NM Globa l Holdings 0.0
Dibz Interna tiona l, Inc . 0.0
S oc ia l Media V enures , Inc . 0.0
0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000
TEV/Revenue (LTM) averages 5.4x: The overall average TEV/Revenue (LTM) multiple for our group is 5.4x (vs. 5.2x last
week) (Figure 9). Three companies trade at more than 25x revenue – Bigstring Corp. (OTCBB:BSGC) at 34.6x, Dolphin
Digital Media, Inc. (OTCBB:DPDM) at 38.6x, and NeXplore Corporation (OTCPK:NXPC) at 49.2x. The median of 2.1x is up
from 1.7x last week. Note that we exclude multiples greater than 50x. Twenty-seven companies have multiples under 1.5x.
60. 0
49.2
50. 0
38.6
40. 0
34.6
30. 0
23.7
20. 0 18.1
15.0 15.6
12.6
11.4 12.1
MO K O .mobi L imited
UO MO Media, Inc
C LIC K E R Inc.
DXN Holdings B hd
C DC C orp.
G eoS entric O y j
S N M G loba l Holdings
O pen T ex t C orp.
C y berplex Inc .
S pa rk N etwork s , Inc .
G igaMedia Ltd.
is eemedia Inc .
XIN G AG
E olith C o. Ltd.
S ohu.com Inc .
G ree, Inc .
As s ociated Media Holdings Inc .
Y nk K orea Inc .
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 (18), trading at an average multiple of 10.1x (vs. 11.5x last week). On a geographic basis, the
United States has the most companies (38), trading at an average of 7.4x revenue (vs. 5.6x last week) (Figure 11). Ten of
the companies are Canadian (average 4.3x revenue).
7.4
(x)
GTSM
NasdaqGM
HLSE
SEHK
TSE
OSE
KOSE
NasdaqGS
RTS
OM
CM
AMEX
KLSE
BSE
AIM
TSXV
SWX
0.0
ASX
Germany
Finland
China
United
Japan
Canada
Hong Kong
Malaysia
India
Russia
United
Italy
South
Taiwan
Australia
Norway
Switzerland
Sweden
# Companies 1 3 18 11 2 5 4 2 1 4 2 1 1 6 14 2 1 1 1 1 5 1 1
# Companies 1 10 38 3 6 2 1 10 1 8 2 1 1 1 1 1 1 1
TEV/EBITDA (LTM) averages 13.6x: The average multiple for the 36 companies with positive EBITDA (and multiples
under 100x) is 13.6x LTM EBITDA (vs. 13.1x last week), led by Tencent Holdings (SEHK-700) 43.4x multiple (Figure 12).
Eleven companies have EBITDA multiples under 7x. The median multiple is 10.7x (vs. 10.6x last week).
T E V/L T M E B IT DA (x)
60. 0
48. 4
50. 0
43. 0
40. 0
32. 2
30. 0 26. 1
23. 8 24. 9 25. 0
18. 7 18. 8 19. 7
20. 0
A verage, 13.6 13. 1 14. 2 14. 3
11. 6 11. 7 11. 8 12. 4
8. 7 9. 6 9. 8 9. 9 9. 9 10. 2 10. 4 10. 9
10. 0 5. 8 6. 7
4. 0 4. 0 4. 3 4. 7 4. 9
1. 2 1. 5 1. 7
0. 0
C DC C orp.
O pen T ex t C orp.
S park Network s , Inc .
C yberplex Inc .
S ohu. c om Inc .
Mix i, Inc .
G ree, Inc .
Y nk K orea Inc.
TEV/EBITDA (LTM) by country/exchange: Figure 13 shows the average TEV/EBITDA multiples by stock exchange. The
OTCBB has the largest number of companies (18), trading at an average multiple of 4.0x. On a geographic basis, the
United States has the most companies (38), trading at an average of 11.1x EBITDA (Figure 14). Ten of the companies are
Canadian (average 13.9x EBITDA).
NasdaqGM
SEHK
KOSE
TSE
NasdaqGS
OSE
RTS
OM
CM
XTRA
TSX
KLSE
AMEX
TSXV
ASX
0.0 0.0
Germany
China
Japan
Canada
Hong Kong
United
Malaysia
Russia
Italy
South
Korea
States
Taiwan
Australia
Sweden
Switzerland
# Companies 3 4 2 6 5 2 14 1 1 5 1 4 1 2 18 2 1
# Companies 3 8 10 6 10 2 1 1 38 1 1 2 1 1
P/E (LTM) averages 19.2x: The average multiple for the 33 companies with positive earnings (and multiples under 100x)
is 19.2x LTM EPS (vs. 18.4x last week), led by GungHo Online Entertainment’s (OSE:3765) 67.3x multiple (Figure 15).
Eleven companies have P/E multiples under 10x. The median is 13.2x.
P /E L T M (x)
80.0
70.0 67.3
61.2
60.0
52.3
50.1
50.0
42.2
38.6
40.0 36.9
30.0 26.0
22.8
A verage, 19.2 20.0 20.5 20.9
20.0 16.1
14.2 14.5 15.6
10.9 12.0 12.0 12.4 12.9 13.2
9.6
10.0 6.6 6.8
4.9
2.4 2.6 3.1 3.2
0.0
NE O W IZ G ames C orporation
J umbuck E ntertainment Limited
O pen T ex t C orp.
C y berplex Inc.
G igaMedia Ltd.
S ohu.com Inc.
Mix i, Inc.
G ree, Inc.
P/E (LTM) by country/exchange: Figure 16 shows the average P/E multiples by stock exchange. The OTCBB has the
largest number of companies (18), trading at an average multiple of 14.8x. On a geographic basis, the United States has
the most companies (38), trading at an average of 13.7x earnings (Figure 17). Ten of the companies are Canadian
(average 21.9x EPS).
40.0 20.0
26.0 14.4 14.2
30.0 21.1 15.0 14.1 13.7
14.8
20.0 14.2 12.4 11.5 10.0 6.6 4.9
6.8 6.6
10.0 4.9 5.0 0.0
2.1
0.0 0.0 0.0 0.0
Germany
Japan
Canada
China
United
Malaysia
Hong Kong
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 18 1 2 14 4 1 2 1 5 # Companies 6 2 3 10 10 1 8 38 1 2 1 1
UPCOMING EVENTS
E arnings C alendar
C ompany Date & Time Quarter C onf C all Details
Myria d G roup AG (S W X : MY R N) W ednes da y, S eptember 23, 2009 9: 00 AM (C E T ) Q2 2009 NA
T ree. C om, Inc. (Nas da qG M: T R E E ) F rida y, O ctober 30, 2009 11: 00 AM (E DT ) Q3 2009 888-428-9470
A ccelerize New Media, Inc. US D AC LZ OTC B B 18.2 0.65 8. 3% 14.0% 62.5% 225. 0% 18.2% 0. 0%
A ctoz S oft C o. , L td. KR W A052790 K OS E 142.6 19,950 10.8% 0.3% -23.6% 80.5% 123.4% -44.6%
A Q Interactive, Inc. JPY 3838 TSE 31.0 52,500 -1.1% 5.6% -29.6% 60.6% -23.2% -36.7%
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. 1 0.02 -2.6% 6.7% -32.1% 26.7% -52.5% -70.8%
B eta wave C orporation US D B W AV OTC B B 2. 0 0.07 0. 0% -12.5% -22.2% -63. 2% -76.7% -79.4%
B eyond C ommerce, Inc. US D B Y OC OTC B B 7. 9 0.17 -15.0% -12.8% -76.7% -67. 3% -93.2% -93.5%
B right T hings plc GBP AIM:B G T A IM 6. 0 0.01 -0.4% -1.8% 5. 8% -8.3% 9. 9% -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 294.6 2.78 0. 4% 9.0% 105.9% 157. 4% 29.9% -29.1%
C ha ngyou.com L imited US D CY OU Nas da qG S 2,106.0 38.29 -5.6% -0.9% 4. 7% NM NM -20.8%
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 1,187.8 458.00 10.6% 24.5% 26.2% 142. 3% 627.0% -11.8%
C LIC K E R Inc. US D CLK Z OTC B B 0. 4 0.01 -9.1% 0.0% 78.6% -50. 0% -98.0% -98.8%
C ornerW orld C orpora tion US D CW R L OTC B B 5. 7 0.06 0. 0% 9.1% 0. 0% -57. 1% -70.0% -87.2%
C yberplex Inc. C AD T S X: C X TSX 76.6 1.27 0. 0% -19.6% -23.0% 67.1% 119.0% -36.2%
DADA S pA E UR C M: DA CM 165.4 6.95 -2.3% 11.6% 18.2% 42.0% -22.8% -33.7%
DXN Holdings B hd MY R DXN K LS E 39.8 0.61 4. 3% 21.0% 59.2% 116. 1% 59.2% -0.8%
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. 6 0.06 9. 1% 0.0% 114.3% 200. 0% -7. 7% -39.4%
DigitalT own, Inc. US D DG T W OTC B B 72.2 2.64 76.0% 95.6% 32.0% 5.6% -12.0% -34.0%
Dolphin Digital Media, Inc. US D DP DM OTC B B 21.5 0.40 6. 4% 9.6% -27.3% -33. 3% -64.3% -64.6%
E olith C o. Ltd. KR W A041060 K OS E 52.6 875.00 2. 3% 5.4% 4. 2% 65.1% 43.4% -24.6%
E xtens ions , Inc. US D E XT I OTC P K 11.1 0.25 38.9% 212.5% 66.7% 66.7% 150.0% -75.2%
F luid Mus ic C anada , Inc. C AD T S X: F MN TSX 68.0 1.40 -5.4% -3.4% 122.2% 300. 0% 4. 5% -6.0%
F rogs ter Intera ctive P ictures A G E UR FR G XT R A 63.5 17.13 -8.8% 4.8% 115.5% 137. 9% 231.3% -13.8%
G amania Digita l E nterta inment C o. , Ltd. TWD 6180 GTS M 242.1 51.70 12.5% 5.3% -9.9% 53.0% 203.2% -24.9%
G ameO n C o Ltd. JPY 3812 TSE 105.8 100,800 0. 0% -4.6% -6.6% 26.0% -25.3% -33.7%
G eoS entric Oyj E UR G E O1V H LS E 65.9 0.05 0. 0% -16.7% 25.0% 25.0% 0. 0% -16.7%
G ia nt Interactive G roup, Inc. US D GA NY S E 1,750.4 7.73 2. 7% 0.7% -4.1% 11.9% 14.7% -19.2%
G igaMedia Ltd. US D G IG M Nas da qG S 303.7 5.57 15.3% 18.5% 1. 1% -8.4% -28.7% -37.8%
G ra vity C o., L td US D GR VY Nas da qG M 54.2 1.95 14.0% -21.7% 77.3% 204. 7% 89.3% -25.9%
G ree, Inc. JPY T S E :3632 TSE 2,394.2 9,850 16.6% 21.3% 47.9% 113. 7% NM 0. 0%
G ungH o Online E nterta inment, Inc. JPY 3765 OS E 302.3 243,000 -6.1% -0.2% 3. 8% 112. 2% 20.2% -13.2%
H anbitS oft, Inc. KR W A047080 K OS E 73.6 4,050 -3.6% 1.0% -6.9% 21.6% 24.0% -39.0%
IAC /InterA ctiveC orp. US D IA C I Nas da qG S 2,731.5 20.63 6. 3% 5.8% 30.2% 38.6% 21.4% -1.1%
IAS E nergy, Inc. US D IA S A .E OTC B B 10.6 0.15 0. 0% 0.0% -25.0% 233. 3% -9. 1% -46.4%
is eemedia Inc. C AD IE E T S XV 4. 3 0.09 50.0% 38.5% -10.0% 0.0% -10.0% -43.8%
J umbuck E nterta inment L imited AU D AS X:J MB AS X 16.8 0.40 8. 1% 11.1% 2. 6% -20. 0% -32.2% -34.4%
K AB Dis tribution Inc. C AD T S X: K A B TSX 0. 6 0.01 -99.2% -99.2% -99.2% -98. 6% -99.4% -99.2%
K ings oft C o. Ltd. HK D 3888 S E HK 1,141.2 8.11 -1.9% 0.4% 57.5% 170. 3% 265.3% -14.4%
L ingo Media C orpora tion C AD T S XV :L M T S XV 11.5 1.00 0. 0% 6.4% 0. 0% 17.6% -43.5% -43.5%
L iveW orld Inc. US D LV W D OTC P K 1. 5 0.05 25.0% 0.0% -50.0% -66. 7% -79.2% -80.0%
L ookS mart, L td. US D LO O K Nas da qG M 21.9 1.28 9. 4% -2.3% 2. 4% 28.0% -52.8% -54.1%
Ma gnitude Informa tion S ys tems Inc. US D MAG Y OTC B B 4. 5 0.01 8. 7% 53.8% -16.7% -41. 2% -52.4% -66.7%
Mixi, Inc. JPY 2121 TSE 1,002.2 599, 000.00 6. 4% -0.5% 21.0% 84.3% -21.3% -25.5%
Modern T imes G roup Mtg AB SEK MT G B OM 2,974.2 312.50 7. 9% 3.6% 55.1% 117. 0% 18.6% -4.4%
MO K O .mobi Limited AU D MK B AS X 5. 2 0.07 0. 0% 0.0% -6.7% -6.7% 27.3% -30.0%
Myriad G roup AG C HF MY R N S WX 92.0 4.46 -0.9% 2.8% -7.1% 11.5% -51.5% -53.1%
NE O W IZ G ames C orpora tion KR W A095660 K OS E 732.8 42, 000.00 7. 4% 36.6% 23.7% 101. 4% 306.8% -5.6%
NetDra gon W ebS oft, Inc. HK D 777 S E HK 394.2 5.78 -1.4% -6.0% 15.4% 37.9% 18.0% -19.2%
Neteas e. com Inc. US D NT E S Nas da qG S 5,667.6 43.79 2. 9% 3.0% 28.8% 75.9% 95.9% -6.7%
NeuLion Incorpora ted C AD T S X: NL N TSX 98.3 0.93 -9.7% -12.3% 31.0% 111. 4% NM -28.5%
NeXplore C orpora tion US D NXP C OTC P K 30.7 0.55 -8.3% -8.3% -21.4% -26. 7% -52.2% -62.1%
Ngi G roup Inc. JPY 2497 TSE 36.0 26, 750.00 -12.0% -14.4% -22.7% 52.1% -77.1% -79.0%
Northgate T echnologies L imited INR 590057 BSE 31.0 42.65 -1.2% 20.5% 11.2% 32.0% -83.5% -84.1%
O pen T ext C orp. US D OT E X Nas da qG S 2,215.1 39.45 10.6% 2.9% 13.2% 13.0% 11.2% -1.8%
O penwa ve S ys tems Inc. US D OP W V Nas da qG S 225.4 2.70 -5.9% -7.2% 39.2% 225. 3% 132.8% -13.7%
P erfect W orld C o., L td. US D PWRD Nas da qG S 2,163.0 43.98 1. 3% 12.6% 47.4% 227. 5% 88.7% -2.6%
P NI Digital Media Inc. C AD T S XV :P N T S XV 59.9 1.89 0. 5% 17.4% 17.4% 27.7% -9. 1% -22.9%
Q uepa s a C orp. US D QP S A OTC B B 22.1 1.74 -0.6% 16.0% 155.9% 70.6% -45.6% -46.5%
O AO R B C Informa tion S ys tems US D R BCI R TS 160.9 1.16 10.5% 10.5% 16.0% 262. 5% -78.7% -85.2%
S ha nda Intera ctive E nterta inment L td. US D S NDA Nas da qG S 3,574.1 53.53 4. 1% 10.2% 5. 3% 35.9% 98.8% -17.6%
S hutterfly, Inc. US D S F LY Nas da qG S 450.8 17.71 19.2% 16.8% 35.1% 99.0% 95.9% -2.3%
S K C ommunications C o., Ltd. KR W A066270 K OS E 323.4 9, 310.00 3. 3% -0.9% -13.8% 14.7% -21.8% -27.5%
S NA P Intera ctive, Inc. US D S TVI OTC B B 5. 4 0.50 25.0% 25.0% -23.1% -2.0% -43.8% -53.7%
S NM G loba l H oldings US D S NMN OTC P K 0. 0 0.00 81.0% 90.0% -45.7% 280. 0% -99.1% -99.4%
S ocial Media V enures , Inc. US D S MV I OTC P K 0. 0 0.08 0. 0% -27.3% 700.0% -93. 3% -85.5% -98.4%
S ocialwis e, Inc. US D S C LW OTC B B 25.7 0.58 18.4% -3.3% -15.9% 45.0% -73.4% -77.3%
S ohu.com Inc. US D S O HU Nas da qG S 2,639.7 68.86 4. 6% 7.4% 11.0% 65.2% 16.6% -4.7%
S pa rk Networks , Inc. US D LO V A ME X 45.3 2.20 0. 9% 4.8% -5.2% -6.0% -44.4% -47.4%
S pectrumDNA, Inc. US D S P XA OTC B B 10.7 0.22 0. 0% -4.3% -4.3% 15.8% -45.0% -51.1%
T encent H oldings Ltd. HK D 700 S E HK 29,985.0 128 0. 9% 11.1% 50.2% 131. 9% 126.1% -2.1%
T he P a rent C ompa ny US D K IDS .Q OTC P K 0. 2 0.01 -9.1% -33.3% -60.0% -33. 3% -99.1% -99.4%
T he9 L imited US D NC T Y Nas da qG S 212.3 8.46 3. 5% -1.1% -18.5% -34. 0% -54.3% -56.4%
T heS treet.com, Inc. US D TS CM Nas da qG M 83.2 2.72 2. 6% 17.7% 32.0% 30.1% -54.7% -60.5%
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% 0. 0%
T ree.C om, Inc. US D TR E E Nas da qG M 84.2 7.79 -0.5% -16.2% -18.0% 55.8% 40.6% -40.4%
U nis erve C ommunica tions C orp. C AD T S XV :U S S T S XV 0. 9 0.04 -11.1% -11.1% -42.9% -20. 0% -76.5% -82.6%
U nited O nline Inc. US D UNT D Nas da qG S 692.5 8.26 5. 9% 12.5% 44.2% 85.2% -15.1% -22.1%
U OMO Media , Inc US D UO MO OTC B B 10.5 0.12 -11.7% -22.9% -21.9% -6.9% -58.3% -88.6%
V alueC lick Inc. US D V C LK Nas da qG S 1,109.5 12.73 13.8% 16.5% 21.7% 58.5% 25.5% -0.1%
V OIS , Inc. US D V O IS OTC B B 2. 5 0.00 -25.0% -50.0% -66.7% 150. 0% -70.3% -87.0%
W ebzen Inc. US D W ZE N Nas da qG M 36.2 3.05 3. 7% 7.0% -7.6% 60.5% 99.3% -34.8%
W izzard S oftwa re C orporation US D W ZE A ME X 23.2 0.46 -16.4% 0.0% -28.1% 2.8% -68.9% -73.4%
W orlds .com Inc. US D W DDD OTC B B 5. 2 0.10 0. 0% 11.1% 0. 0% -44. 4% -70.6% -71.4%
W ynds torm C orporation US D W Y ND OTC P K 1. 8 0.10 0. 0% 0.0% 185.7% -16. 7% -54.5% -83.3%
XING A G E UR O1B C XT R A 253.5 32.75 -0.3% 19.1% 10.5% 15.3% 10.6% -4.8%
Y edangO nline C orp. KR W A052770 K OS E 112.1 9, 020.00 -2.0% 5.9% 9. 2% 3.9% 24.8% -27.3%
Y nk K orea Inc. KR W A023770 K OS E 18.7 4, 215.00 3. 8% 3.7% -32.0% 9.6% -64.4% -66.0%
H igh 81.0% 650.0% 833.3% 650. 0% 627.0% 0. 0%
L ow -99.2% -99.2% -99.2% -98. 6% -99.4% -99.4%
Average 769.5 2.7% 13.0% 35.2% 58.4% 6.0% -43.4%
Media n 0. 2% 3.0% 4. 4% 32.0% -21.8% -38.4%
United S tates 38 C hina 49, 633. 4 C hina 4,963.3 C hina 4, 152. 4 C hina 2, 070. 2 C hina 48. 8%
C anada 10 United S tates 5, 811. 3 S weden 2,974.2 United S ta tes 3, 887. 3 S weden 304. 6 Aus tra lia 42. 8%
C hina 10 J apa n 3, 871. 5 J a pa n 645.3 S weden 1, 982. 6 United S tates 290. 0 T aiwan 37. 1%
S outh K orea 8 S weden 2, 974. 2 T a iwan 577.9 C anada 1, 015. 0 C a na da 200. 0 J apa n 24. 2%
J apan 6 C a na da 2, 488. 2 Hong K ong 294.6 S outh K orea 707. 3 J a pa n 186. 0 S weden 15. 4%
T aiwan 3 T aiwan 1, 733. 6 C a nada 248.8 J apan 634. 4 S outh K orea 121. 9 Ma lays ia 14. 4%
Aus tralia 2 S outh K orea 1, 527. 4 S outh K orea 190.9 T aiwan 385. 8 T a iwan 59. 8 Ita ly 13. 1%
G ermany 2 G ermany 317.0 Ita ly 165.4 Hong K ong 361. 6 Ita ly 31. 9 R us s ia 13. 1%
S witzerland 1 Hong K ong 294.6 R us s ia 160.9 Italy 242. 6 Hong K ong 25. 1 S outh K orea 12. 7%
Hong K ong 1 Ita ly 165.4 G ermany 158.5 R us s ia 156. 2 R us s ia 20. 4 Hong K ong 6. 9%
F inland 1 R us s ia 160.9 United S tates 152.9 India 82. 8 G ermany 12. 5 S witz erla nd 1. 9%
Italy 1 S witz erla nd 92. 0 S witzerla nd 92.0 Malays ia 77. 1 Ma la ys ia 11. 1 C a na da -8. 5%
United K ingdom 1 F inla nd 65. 9 F inla nd 65.9 G ermany 68. 7 Aus tralia 4. 5 G ermany -9. 1%
India 1 Ma lays ia 39. 8 Ma la ys ia 39.8 S witzerland 40. 0 S witz erla nd 0. 8 United S tates -21. 9%
S weden 1 India 31. 0 India 31.0 Aus tralia 17. 8 Norway -1. 1 India -50. 0%
R us s ia 1 Aus tra lia 22. 1 Aus tralia 11.0 F inland 5. 5 United K ingdom -2. 7 Norway -50. 6%
Malays ia 1 United K ingdom 6. 0 United K ingdom 6.0 Norway 2. 3 F inla nd -17. 5 United K ingdom #DIV /0!
Norway 1 Norway 0. 1 Norway 0.1 United K ingdom 0. 0 India -41. 4 F inla nd #DIV /0!
G rand Total 89 G rand Total 69,234.6 G rand Total 777.9 G rand Total 13,819.5 G rand Total 3,276.1 G rand Total 5.1%
G rand Total 89 G rand Total 69,234.6 G rand Total 777.9 G rand Total 13,819.5 G rand Total 3,276.1 G rand Total 5.1%
HiveL ive United S ta tes www. hivelive. com HiveLive 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, rela tions hips , and s ha red knowledge. It offers LiveC onnect, provides a building-block approach
for creating cus tom-fit online cus tomer communities ; and Hives , which are W eb 2. 0 building blocks tha t combine people, information, and
permis s ions to create information res ources . HiveLive Inc. was founded in 2006 and is bas ed in B oulder, C olorado.
InXpo United S ta tes www. inxpo. com InX po is the leading provider of priva tely-bra nded virtual events , including V irtua l T rade S hows , V irtual C areer F airs and V irtua l C orporate
E vents , as well a s Audio and V ideo W ebcas ts . T hes e virtual s olutions dramatically reduce tra vel time and related cos ts , in addition to
making the world a greener place to live. InXpo’s V irtual E vents provide P ublis hers with new online revenue opportunities and C orporations
with the ability to generate leads , communicate, educate and network by connecting more effectively with their communities .
J obvite United S ta tes www. jobvite. com J obvite, Inc. offers recruitment application that allows to collaborate on making hires . It s erves HR and s ta ffing executives , recruiters , hiring
managers , executives , employees , and jobs eekers . T he company was founded in 2003 as F orumJ obs a nd changed its name to J obvite, Inc.
in 2006. J obvite, Inc. is bas ed in S an F rancis co, C alifornia.
Mas hL ogic United S ta tes www. ma s hlogic. com Mas hLogic Inc. offers mas hes to pers ona lize the applications for the us ers and bloggers . It adds relevant links to W ebs ites , pers onaliz es
W eb pages , increas es vis ibility and reach of content and bra nd, and enriches W eb with links to s ources . T he company was founded in 2007
a nd is bas ed in Menlo P ark, C a lifornia .
Mint.com United S ta tes www. mint. com Mint S oftware, Inc. provides a W eb-bas ed s olution for online fina ncial mana gement. It offers money mana gement, debt management,
expens e tracking, inves tment ma nagement, budget management, mutual fund, IR A management, a nd financial pla nning s ervices . T he
company als o provides s ugges tions bas ed on us er’s s pending patterns and a utomatic categorization of purcha s es . Mint S oftware, Inc. was
founded in 2006 and is bas ed in Mountain V iew, C a lifornia .
Mocapay United S ta tes www. mocapay. com Mocapa y, Inc. provides a mobile commerce pla tform tha t s upports integrated mobile payments , marketing, and dis tribution at point-of-s ale. It
offers a ma rketing engine, which enables mes s aging cons umers before, during, a nd after a retail s tore trans action. T he company was
formerly known a s F E E D and changed its name to Mocapay, Inc. in 2007. Mocapa y, Inc. was founded in 2006 and is bas ed in B oulder,
United S ta tes www. nextbio. com C olorado.
NextB io, Inc. provides s oftware a s a s ervice bas ed s earch s olutions to life s cience res earchers . It offers NextB io B as ic, a W eb application
NextB io
tha t provides acces s to a databas e of public data; NextB io P rofes s ional that allows the individual res earcher or groups of res earchers to
exploit publicly available and internally generated experimental data to enable and accelerate new s cientific dis coveries ; and NextB io
E nterpris e that provides collaboration acros s therapeutic groups and geographic boundaries for pharma ceutica l and biotechnology
companies , commercial and non-profit res ea rch and development organiz ations , a nd academic ins titutions . T he company als o provides
NextB io P latform that provides ontology-ba s ed s emantic fra mework that connects heterogeneous data a nd textual information, as well a s
data analys is and curation, training, and s upport s ervices . NextB io, Inc. was founded in 2004 and is ba s ed in C upertino, C alifornia. It has
s ales offices in New J ers ey; B os ton, Mas s achus etts ; and S an F rancis co, C alifornia.
NowPublic C a nada www. nowpublic. com NowP ublic T echnologies , Inc. , a participatory news network, owns and operates NowP ublic. com platform for citizen journalis m. T he
company provides politics , culture, enterta inment, and life photos and video headlines . It s erves Internet us ers , bloggers , a nd photography
enthus ias ts . T he company was founded in 2005 a nd 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 United S ta tes www. riotgames . com R iot G ames , 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 Los Angeles , C alifornia.
S kype Luxembourg www. s kype. com S kype T echnologies S . A. provides S kype, a s oftware that enables individua ls and bus ines s es to ma ke free video and voice calls , s end
ins tant mes s ages , and s ha re files with other S kype us ers . It als o enables to make calls to landlines and mobiles internationa lly. T he
company als o provides heads ets , W ebca ms , 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 enez uela. T he company was founded in 2003 and is bas ed in Luxembourg. As of October 14, 2005, S kype T echnologies
S . A. is a s ubs idiary of eB ay Inc.
Tiny P ictures United S ta tes www. tinypictures . us T iny P ictures , Inc. provides a s ervice for s haring of camera phone pictures and videos between friends . It offers R adar, a s ervice that
enables us ers to s hare camera phone pictures and videos with friends . T he company was founded in 2005 a nd is bas ed in S an F rancis 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 United S ta tes www. yumenetwork s . com Y uMe, Inc. operates a s a video advertis ing network on W eb. It offers ad mana gement s ys tem tha t enables a dvertis ers and publis hers to
identify, clas s ify, and track content through digital media platforms , s uch a s W eb, downloads , mobile, a nd IP T V . T he company als o enables
publis hers to organize video on their s ite into content channels , s uch as automotive, financial s ervices , lifes tyle, news , mus ic, s ports ,
entertainment, and fa mily friendly. In addition, it offers real-time targeting, mea s urement, and optimization; content dis tribution and viral
a dvertis ing opportunities ; a s uite of intera ctive ad placements ; a nd video monetiz ation s ervices . F urther, the company provides a beha viora l
targeting s ys tem that enables advertis ers to target their mes s ages to viewers on a nationa l s cale bas ed on video viewing interes ts a nd
purchas e intent. Y uMe, Inc. was founded in 2004 and is headquartered in R edwood C ity, C alifornia.
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
www.researchcapital.com