SOFTWARE & SERVICES 1 DECEMBER 2009

DAVID SHORE, CFA, MBA 416.860.6784

WEB 2.O WEEKLY david.shore@researchcapital.com
Damian Wojcichowsky, CFA (Associate), 416.860.7652

STRO NG MONTH FOR WEB 2.0 FINANCING

F E W ER B UT L A RG E R D E AL S P US H N O VE MB E R O V ER $2 00 MIL L IO N I N F I N AN CI NG
November 2009 is a month that saw 10 financings in excess of $15 million each, plus the $400 million acquisition of
PlayFish by Electronic Arts. This despite the number of deals tracking well below the roughly 25 deals per month that
our W eb 2.0 universe has generated in 2009 to date. Regarding the higher value deals, we observe two clear sector
trends: investment in gaming companies approaching the market from a social networks perspective (e.g. PlayFish,
Playdom, Zynga), and increased interest in Chinese online media companies (Ku6.com, Phoenix New Media,
Qunar.com).

Financing by Month

900.0 45

812.5
800.0 40

700.0 35
662.9

600.0 30

500.5
500.0 25
(US$mm)

(#)
400.5
400.0 20
361.4
351.3
316.3
300.0 15
264.1
251.8
232.8
217.6 221.6
207.1 204.7
202.9 203.4
191.7
200.0 168.6 177.5 171.3 10
164.8
151.0 145.7 144.4 154.0
140.7
127.1
117.0
107.0
100.6 100.6
88.5 92.6 90.3 82.3
100.0 75.3 69.0 74.7 5
66.3 62.9
64.7 58.9
44.7 52.6 47.9 46.3
41.9
33.5
21.4 23.9 23.9 23.5
7.5 5.57.5 7.59.4 12.5 13.2 21.5
1.1
0.0 0
Nov-04

Mar-05

May-05

Nov-05

Mar-06

May-06

Nov-06

Mar-07

May-07

Nov-07

Mar-08

May-08

Nov-08

Mar-09

May-09

Nov-09
Dec-04
Jan-05
Feb-05

Apr-05

Jun-05
Jul-05
Aug-05
Sep-05
Oct-05

Dec-05
Jan-06
Feb-06

Apr-06

Jun-06
Jul-06
Aug-06
Sep-06
Oct-06

Dec-06
Jan-07
Feb-07

Apr-07

Jun-07
Jul-07
Aug-07
Sep-07
Oct-07

Dec-07
Jan-08
Feb-08

Apr-08

Jun-08
Jul-08
Aug-08
Sep-08
Oct-08

Dec-08
Jan-09
Feb-09

Apr-09

Jun-09
Jul-09
Aug-09
Sep-09
Oct-09

WHILE FUNDING ACTIVITY IS HEATING UP…

November – seventh month to close above $200 million in 2009: Total transaction value in the Web 2.0 universe
for November ended at $203.4 million. The number of financings increased to 18, averaging $11.3 million each (vs. an
average of $11.9 million over 17 deals as of last week). In comparison, total capital raised in October was $171.3
million, averaging $6.3 million (27 deals); September was $232.8 million, averaging $9.0 million (26 deals); and
August was $221.6 million, averaging $7.6 million (29 deals).

… PUBLIC MARKETS PULL BACK

Market pull-back continues: Nineteen companies in our universe had positive stock price performances over the
past week (for stocks with prices greater than $1), while 28 companies showed negative 1-week returns.

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

Eighty-nine public Web 2.0 companies: Our W eb 2.0 universe contains 89 companies, with a combined market cap of
approximately $69 billion (Figure 1). The median market cap for the group is $41 million, with average trailing revenue of
$165 million (median $52 million). The companies are also generally profitable with a median EBITDA margin of 11.1%.
On a valuation basis, the overall average is 5.7x trailing revenue (median 1.6x) and 10.7x trailing EBITDA (median 7.6x).
Twenty of the companies have more than 500 employees.
C omparable C ompany Analys is > Web 2.0
Trading C urrent US D Market US D L TM Total US D L TM Total E B ITDA TE V/L TM TE V/L TM
C ompany Name L TM as of Ticker E xc hange C urrency HQ P rice C ap ($m) R ev ($m) E B ITDA ($m) % R evenue E B ITDA E mployees
Accelerize New Media , Inc. 9/30/2009 AC LZ OT C B B US D United S ta tes 0. 55 15. 8 4. 1 (1.5) -36. 5% 5. 0x - 11
Actoz S oft C o. , Ltd. 9/30/2009 A052790 K OS E KR W S outh K orea 21,850 158. 7 115.9 25. 7 22. 2% 1. 0x 4. 6x NA
AQ Interactive, Inc. 9/30/2009 3838 TS E JPY J a pan 40,450 24. 6 74. 0 3.8 5.1% 0. 0x 0. 5x NA
As s ociated Media Holdings Inc. 6/30/2007 AS MH OT C P K US D United S ta tes 0. 76 32. 9 0. 1 (2.3) NM - - 3
B igs tring C orp. 9/30/2009 BS GC OT C B B US D United S ta tes 0. 03 1.9 0. 1 (1.0) NM 46.4x - 4
B eta wave C orporation 9/30/2009 B W AV OT C B B US D United S ta tes 0. 08 2.3 8. 4 (14. 3) NM - - 45
B eyond C ommerce, Inc. 9/30/2009 B Y OC OT C B B US D United S ta tes 0. 05 2.6 13. 5 (12. 4) -91. 9% 1. 1x - 43
B right T hings plc 3/31/2009 AIM: B G T AIM GBP United K ingdom 0. 01 5.3 0. 0 (2.7) NM - - NA
B roa dW ebAs ia Inc. 9/30/2008 BWBA OT C P K US D United S ta tes 0. 09 7.6 0. 0 (4.6) NM - - 46
C DC C orp. 9/30/2009 C HIN. A Na s daqG S US D Hong K ong 2. 38 252. 2 334.2 20. 0 6.0% 0. 7x 11. 1x 2, 227
C hangyou. com L imited 9/30/2009 C Y OU Na s daqG S US D C hina 32. 47 1,785. 9 255.3 157.4 61. 7% 5. 8x 9. 4x 628
C hina G a teway C orporation 9/30/2008 CGWY OT C P K US D United S ta tes 0. 00 0.0 6. 7 (6.6) -98. 9% 0. 0x - 37
C hines e G amer Interna tiona l 9/30/2009 G T S M: 3083 GTS M TWD T aiwa n 440 1,141. 1 68. 3 39. 6 58. 0% 15.5x 26. 8x NA
C LIC K E R Inc. 5/31/2009 C LK Z OT C B B US D United S ta tes 0. 01 0.5 2. 5 (1.2) -45. 8% 0. 2x - 22
C ornerW orld C orpora tion 7/31/2009 CWR L OT C B B US D United S ta tes 0. 03 2.9 6. 8 NM NM 1. 9x - 16
C yberplex Inc. 9/30/2009 T S X :C X TS X C AD C anada 1 73. 7 105.6 11. 7 11. 1% 0. 5x 4. 6x NA
DADA S pA 6/30/2009 C M: DA CM E UR Italy 6. 28 149. 0 241.9 31. 8 13. 1% 0. 8x 6. 2x NA
DXN Holdings B hd 8/31/2009 DX N K LS E MY R Ma la ys ia 0. 57 37. 2 77. 3 (84. 0) NM 0. 6x - NA
Dibz International, Inc. NA DIB Z OT C P K US D United S ta tes 0. 00 0.0 NA NM NM - - NA
DigitalP os t Interactive, Inc. 9/30/2009 DG LP OT C B B US D United S ta tes 0. 05 4.6 1. 2 (0.9) -73. 8% 5. 7x - 7
DigitalT own, Inc. 8/31/2009 DG T W OT C B B US D United S ta tes 1. 40 38. 3 0. 0 (1.8) NM - - 3
Dolphin Digital Media , Inc. 6/30/2009 DP DM OT C B B US D United S ta tes 0. 30 17. 1 0. 6 (3.4) NM 31.0x - NA
E olith C o. Ltd. 12/31/2008 A041060 K OS E KR W S outh K orea 560 34. 0 15. 4 (3.6) -23. 6% 2. 3x - NA
E xtens ions , Inc. 6/30/2009 E XT I OT C P K US D United S ta tes 0. 30 13. 3 NM NM NM - - 2
F luid Mus ic C a nada , Inc. 9/30/2009 T S X :F MN TS X C AD United S ta tes 2. 00 116. 0 5. 6 (3.0) -54. 0% 20.4x - NA
F rogs ter Interactive P ictures AG 6/30/2009 FRG XT R A E UR G ermany 17. 75 66. 6 9. 6 (4.5) -47. 0% 6. 8x - NA
G ama nia Digita l E ntertainment C o., Ltd. 9/30/2009 6180 GTS M TWD T aiwa n 46. 45 219. 8 151.2 24. 9 16. 5% 1. 3x 7. 9x NA
G ameOn C o Ltd. 9/30/2009 3812 TS E JPY J a pan 62,400 67. 5 79. 3 18. 6 23. 5% - - NA
G eoS entric O yj 9/30/2009 G E O 1V HL S E E UR F inland 0. 04 52. 6 4. 7 (19. 0) NM 12.0x - 94
G iant Interactive G roup, Inc. 9/30/2009 GA NY S E US D C hina 7 1,592. 1 202.2 137.9 68. 2% - - 1, 570
G iga Media Ltd. 3/31/2009 G IG M Na s daqG S US D T aiwa n 4. 02 219. 2 183.6 NM NM 0. 8x - 751
G ravity C o., Ltd 9/30/2009 GR VY Na s daqG M US D S outh K orea 1. 50 41. 7 49. 9 17. 7 35. 4% - - 469
G ree, Inc. 9/30/2009 T S E : 3632 TS E JPY J a pan 4,600 2,303. 0 210.3 122.2 58. 1% 10.5x 18. 0x NA
G ungHo O nline E ntertainment, Inc. 9/30/2009 3765 OS E JPY J a pan 142,300 182. 3 120.7 26. 9 22. 3% 1. 2x 5. 3x NA
HanbitS oft, Inc. 9/30/2009 A047080 K OS E KR W S outh K orea 3,670 67. 3 57. 6 (0.3) -0.6% 1. 0x - NA
IAC /InterActiveC orp. 9/30/2009 IAC I Na s daqG S US D United S ta tes 19. 45 2,566. 8 1, 359. 6 82. 4 6.1% 0. 7x 11. 2x 3, 200
IAS E nergy, Inc. 4/30/2009 IAS A. E OT C B B US D C anada 0. 11 7.8 0. 0 (0.6) NM - - NA
is eemedia Inc. 6/30/2009 IE E T S XV C AD C anada 0. 20 9.4 1. 7 (4.5) NM 5. 4x - NA
J umbuck E nterta inment Limited 6/30/2009 AS X :J MB AS X AUD Aus tralia 0. 33 14. 0 16. 7 7.2 42. 8% 0. 5x 1. 1x 79
K AB Dis tribution Inc. 6/30/2009 T S X :K AB TS X C AD C anada 0 0.6 67. 9 4.0 5.8% - - NA
K ings oft C o. Ltd. 6/30/2009 3888 S E HK HK D C hina 6 818. 1 139.1 61. 4 44. 2% 5. 6x 12. 7x 2, 463
Lingo Media C orporation 6/30/2009 T S X V :LM T S XV C AD C anada 0. 96 11. 0 1. 2 (1.9) NM 8. 4x - NA
LiveW orld Inc. 9/30/2009 LVW D OT C P K US D United S ta tes 0. 03 1.0 10. 4 0.4 4.1% - - NA
LookS mart, Ltd. 9/30/2009 L OO K Na s daqG M US D United S ta tes 1. 04 17. 8 54. 0 (4.5) -8.4% - - 90
Magnitude Information S ys tems Inc. 6/30/2009 MAG Y OT C B B US D United S ta tes 0. 02 10. 6 0. 1 (2.5) NM - - 14
Mixi, Inc. 9/30/2009 2121 TS E JPY J a pan 700000. 00 1,206. 3 139.6 46. 1 33. 0% 7. 7x 23. 3x NA
Modern T imes G roup Mtg AB 9/30/2009 MT G B OM SEK S weden 310. 00 2,933. 7 2, 002. 6 282.9 14. 1% 1. 7x 12. 3x 2, 969
MO K O .mobi Limited 6/30/2009 MK B AS X AUD Aus tralia 0. 12 11. 1 0. 7 (2.4) NM 14.6x - NA
Myriad G roup AG 6/30/2009 MY R N SWX C HF S witzerland 4. 85 207. 9 63. 0 3.4 5.4% 3. 2x - 405
NE O W IZ G ames C orpora tion 12/31/2008 A095660 K OS E KR W S outh K orea 42250. 00 746. 4 207.3 55. 7 26. 8% 3. 6x 13. 2x NA
NetDragon W ebS oft, Inc. 9/30/2009 777 S E HK HK D C hina 4 301. 4 91. 4 27. 8 30. 4% 1. 7x 5. 4x 2, 426
Neteas e. com Inc. 9/30/2009 NT E S Na s daqG S US D C hina 38. 24 4,949. 3 482.9 291.8 60. 4% - - 3, 109
NeuLion Incorporated 9/30/2009 T S X :NLN TS X C AD C anada 0. 80 85. 6 24. 9 (16. 1) -64. 5% 3. 0x - 237
NeXplore C orporation 6/30/2009 NX P C OT C P K US D United S ta tes 1 41. 3 1. 7 (13. 3) NM 26.6x - NA
Ngi G roup Inc. 9/30/2009 2497 TS E JPY J a pan 22200. 00 30. 8 81. 7 3.2 3.9% - - NA
Northgate T echnologies L imited 9/30/2009 590057 BSE INR India 32. 25 23. 4 46. 4 (49. 8) NM 0. 5x - NA
O pen T ext C orp. 9/30/2009 OT E X Na s daqG S US D C anada 38. 07 2,146. 4 814.5 211.1 25. 9% 2. 7x 10. 5x 3, 900
O penwave S ys tems Inc. 9/30/2009 OP W V Na s daqG S US D United S ta tes 2. 36 197. 1 190.5 6.2 3.3% 0. 5x 14. 8x 590
P erfect W orld C o. , Ltd. 9/30/2009 PWRD Na s daqG S US D C hina 44. 13 2,195. 8 286.1 157.4 55. 0% 0. 5x 0. 9x 2, 096
P NI Digital Media Inc. 6/30/2009 T S X V :P N T S XV C AD C anada 1. 65 51. 9 21. 0 2.3 11. 0% 2. 4x 21. 6x NA
Q uepa s a C orp. 9/30/2009 QP S A OT C B B US D United S ta tes 1 17. 7 0. 2 (9.8) 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. 60 222. 0 157.4 20. 6 13. 1% 0. 0x 0. 4x NA
S handa Interactive E nterta inment Ltd. 6/30/2009 S NDA Na s daqG S US D C hina 49. 84 3,352. 0 629.0 296.7 47. 2% - - 3, 124
S hutterfly, Inc. 9/30/2009 S FLY Na s daqG S US D United S ta tes 14. 34 368. 2 223.1 27. 0 12. 1% 1. 1x 9. 5x 514
S K C ommunications C o., Ltd. 12/31/2008 A066270 K OS E KR W S outh K orea 7540. 00 264. 6 192.7 12. 5 6.5% 1. 4x 21. 1x NA
S NAP Interactive, Inc. 9/30/2009 S TVI OT C B B US D United S ta tes 0 2.2 3. 4 0.5 15. 6% 0. 2x 1. 2x 11
S NM G loba l Holdings 9/30/2008 S NMN OT C P K US D United S ta tes 0. 00 0.0 2. 0 (0.7) -34. 8% 1. 1x - 33
S ocial Media V entures Inc. 12/31/2008 S MV I OT C P K US D United S ta tes 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 United S ta tes 0. 49 22. 9 0. 0 (5.6) NM - - NA
S ohu. com Inc. 9/30/2009 S O HU Na s daqG S US D C hina 55. 76 2,144. 4 501.0 218.4 43. 6% 3. 2x 7. 3x 3, 197
S park Networks , Inc. 9/30/2009 L OV AME X US D United S ta tes 2 49. 1 47. 5 10. 0 21. 0% 1. 0x 4. 5x 183
S pectrumDNA, Inc. 9/30/2009 S P XA OT C B B US D United S ta tes 0 6.8 0. 1 (2.5) NM 48.7x - 7
T encent Holdings Ltd. 9/30/2009 700 S E HK HK D C hina 143 33, 587.4 1, 588. 4 811.3 51. 1% 23.2x 45. 4x 6, 194
T he P arent C ompany 8/2/2008 K IDS . Q OT C P K US D United S ta tes 0. 01 0.2 112.0 (13. 5) -12. 0% 0. 2x - 347
T he9 Limited 12/31/2008 NC T Y Na s daqG S US D C hina 7. 55 189. 6 250.6 85. 5 34. 1% - - 1, 626
T heS treet. com, Inc. 3/31/2009 TS CM Na s daqG M US D United S ta tes 2. 33 71. 3 67. 0 1.9 2.9% 0. 1x 3. 5x 310
T ree.C om, Inc. 9/30/2009 TR E E Na s daqG M US D United S ta tes 6. 45 70. 3 217.1 9.7 4.5% 0. 2x 4. 6x 700
Unis erve C ommunica tions C orp. 8/31/2009 T S X V :US S T S XV C AD C anada 0. 04 0.9 16. 1 0.1 0.9% 0. 3x 37. 2x NA
United O nline Inc. 9/30/2009 UNT D Na s daqG S US D United S ta tes 6. 80 575. 2 996.8 212.9 21. 4% 0. 8x 3. 9x 1, 469
UOMO Media, Inc 7/31/2009 UO MO OT C B B US D C anada 0 5.2 0. 8 (0.4) -54. 2% 7. 1x - NA
V alueC lick Inc. 9/30/2009 V C LK Na s daqG S US D United S ta tes 9 807. 8 545.7 130.8 24. 0% 1. 2x 5. 0x 1, 189
V OIS , Inc. 6/30/2009 V O IS OT C B B US D United S ta tes 0 9.9 0. 0 (1.0) NM - - 4
W ebzen Inc. 9/30/2009 W ZE N Na s daqG M US D S outh K orea 2. 72 32. 3 23. 0 2.5 11. 0% - - NA
W izzard S oftwa re C orporation 9/30/2009 W ZE AME X US D United S ta tes 0. 45 24. 1 5. 2 (3.9) -76. 4% 4. 9x - 110
W orlds . com Inc. 9/30/2009 W DDD OT C B B US D United S ta tes 0. 10 5.4 0. 1 (0.6) NM - - 1
W ynds torm C orpora tion NA W Y ND OT C P K US D United S ta tes 0. 04 0.7 NA NM NM - - NA
XING AG 9/30/2009 O 1B C XT R A E UR G ermany 32. 90 254. 0 62. 5 16. 9 27. 0% 3. 2x 11. 7x 266
Y D O nline C orp. 12/31/2007 A052770 K OS E KR W S outh K orea 6120. 00 76. 9 57. 4 12. 4 21. 6% 1. 5x 6. 8x NA
Y nk K orea Inc. 12/31/2008 A023770 K OS E KR W S outh K orea 3695. 00 16. 5 11. 9 1.3 10. 5% - - NA
High 33, 587.4 2,002. 6 811. 3 68. 2% 48.7x 45. 4x 6, 194
Low 0.0 0. 0 -84.0 -98. 9% - - 1
Average 780.8 165.4 41.1 5.7% 5.7x 10.7x 938
Median 41. 3 51.9 2. 1 11. 1% 1. 6x 7. 6x 252

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 )
November – seventh month to close above $200 million in 2009: Total transaction value in the Web 2.0 universe for
November ended at $203.4 million. The number of financings increased to 18 averaging $11.3 million each (vs. an average
of $11.9 million over 17 deals as of last week). In comparison, total capital raised in October was $171.3 million, averaging
$6.3 million (27 deals); September was $232.8 million, averaging $9.0 million (26 deals); and August was $221.6 million,
averaging $7.6 million (29 deals).

Financing Activity Last Twelve Months

400.0 16.0

14.6

350.0 14.0

300.0 11.3 12.0

11.1

250.0 10.0
9.0
(US$m)

(US$m)
200.0 7.6 8.0
7.1
6.7 6.6
6.5 6.3
6.2
150.0 5.6 6.0
4.9

100.0 4.0

50.0 2.0

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

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

Figure 2. Financings, Last Twelve Months

Source. Company reports
 Page 4

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

• PlayFish – the UK-based social gaming company – was acquired by Electronic Arts in a deal potentially valued up
to $400 million.

• RockYou – widget maker – raised $50 million in a Series D financing.

• Ku6.com – Chinese video sharing site – was acquired by Shanda (which purchased a 58% stake) for $44 million.

• Playdom – social network-based games developer– raised $43 million in its first venture financing.

• Sezmi – maker of set top box tech – raised $25 million in a third round of VC funding.

• Phoenix New Media – the subsidiary of Phoenix Television, a popular Chinese news portal and media site – raised
$25 million from Intel Capital and Bertelsmann Asia Investment Fund.

• Motley Fool – the financial information site – raised $25 million in an unattributed financing.

• Millennial Media – a mobile media network – raised $16 million in Series C funds.

• Qunar.com – a Beijing-based travel price aggregation site – received $15 million in funding.

• Zynga – developer of popular Facebook game, Farmville, among others – raised $15 million in its third financing.

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

Financing & M/A Summary - Last Three Months

200.0

180.0

160.0

140.0

120.0

Nov-09
(US$m)

100.0 Oct-09
Sep-09

80.0

60.0

40.0

20.0

0.0
Phoenix New

Aviary

Nival Network

AppNexus

Mocapay
Fwix
Vantrix
Fizzback

Linkedex
DailyMotion

Jive Software

Mzinga
InXpo

NextBio

Reality Mobile

HiveLive
Motley Fool
Yext

Box.net
Twitter

NowPublic

Ecast Network

Livebookings

MashLogic

Tiny Pictures
DataSync
Skype
PlayFish

RockYou
Ku6

PopCap
Ensequence
Engine Yard

Zynga

Evernote
Ooyala

Jobvite
CubeTree
wooga

Bizo
Eventbrite
Vuclip

Booyah
YuMe
Vdopia
NeoEdge

Alliance

ViVu

Overtone
Blekko
Godengo
Playfire
Greystripe

FourSquare
Onehub
EduFire
DailyBooth
Hot Potato

IngBoo
Chango

Listia
SocialMedia
OnLive
Sezmi

Millennial

Technorati
Mint

StatusNet
Dopplr

Unisfair

Fluther

Scoopler

VEVO
Playdom

Altruik

Scout Labs

Conduit Labs

Adfonic
Credit Karma

SimpleGeo
Loomia

TransGaming
HubSpot

Spigit

ScanScout

Placecast

Amie Street

Aurora Feint
Joost
Qunar.com

FeedRoom

Imeem

Alice.com

Prosper.com

Gamelab.com
Riot Games

Sometrics
Watercooler

Figure 3. Capital Market Activity, Last Three Months

Source. Company reports
 Page 5

Social Networks the most active sector: Social Networks experienced the most financing activity among our W eb 2.0
sector categories in the past three months by number of transactions (nine). Advertising and Gaming continue to be
among the highest activity sectors in the past quarter (eight deals each). Video and Collaboration-related companies have
been hot recently, garnering the third highest number of deals (seven) (Figure 4). The $2.0 billion acquisition of Skype
skews the dollars transacted to the SMS/Voice segment, while the $400 million acquisition of Playfish brings the Virtual
W orlds segment to the second highest total. Finally, the $170 million acquisition of Mint brings the Vertical Communities
segment into third place.

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

2,025.0 417.1 178.3 137.3 107.0 100.9 57.0 51.4 50.0 49.9 45.5 39.0 30.0 25.6 22.2 18.6 17.2 15.0 13.0 10.0 9.9 7.0 6.4 4.0 3.6 2.2
0.0

Social Commerce
Communities

Gaming

Documents
Travel
Microblog

Media

Collaboration

Enterprise

Mobile

Publishing
Music

Financial Services
Widget
SMS/Voice

Infrastructure

Search

Mobile Ad

Classified
Social Networks
Virtual World

Video

Advertising

Crowdsourced

Aggregation
Analytics
Vertical

Content

# companies
1 4 2 7 8 2 3 9 1 8 7 4 4 2 6 3 2 1 4 1 2 2 2 3 2 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 Q1/09. Since then, the index has diverged in a much
stronger recovery relative to the NASDAQ index (Figure 5).

Web 2.0 Index Price Performance

300

250

200

150

100

50

0
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

10/5/2009

10/19/2009

11/2/2009

11/16/2009

11/30/2009
Index: Web 2.0 (Market Cap) ^COMP - Share Pricing

Figure 5. Web 2.0 Price Performance

Source. Capital IQ
 Page 7

Market pull-back continues: Nineteen companies in our universe had positive stock price performances over the past
week (for stocks with prices greater than $1) (Figure 6), while 28 companies showed negative 1-week returns.

1 Week P rice P erformance

A c toz S oft Co., Ltd. 30.8%
Northgate Technologies Limited 19.2%
Quepas a Corp. 12.1%
Frogs ter Interac tive Pictures A G 7.1%
G ree, Inc. 5.5%
HanbitS oft, Inc. 4.6%
Gravity Co., Ltd 4.2%
Open Tex t Corp. 3.8%
S ohu.com Inc. 3.5%
G iant Interactive G roup, Inc. 2.6%
Fluid Mus ic Canada, Inc. 2.6%
NEOWIZ G ames Corporation 2.2%
A Q Interac tive, Inc. 1.1%
XING A G 1.1%
Perf ect World Co., Ltd. 1.1%
Neteas e.c om Inc. 1.0%
S handa Interactive 0.8%
My riad G roup A G 0.4%
Mix i, Inc. 0.1%
The9 Limited 0.0%
G ama nia Digital Entertainment -0.1%
Y D Online Corp. -0.5%
G igaMedia Ltd. -0.7%
TheS treet. com, Inc. -1.7%
IA C/InterA ctiveCorp. -2.6%
Eolith Co. Ltd. -2.6%
PNI Digital Media Inc. -2.9%
Tencent Holdings Ltd. -3.2%
S hutterf ly , Inc. -3.6%
Chines e G amer International -3.7%
Cy berplex Inc. -3.9%
United Online Inc. -4.1%
S park Netw orks , Inc. -4.1%
G ameOn Co Ltd. -4.1%
Webz en Inc. -4.2%
Changy ou.com Limited -4.4%
Modern Times G roup Mtg A B -5.3%
Openw ave S y s tems Inc. -5.6%
S K Communications Co., Ltd. -5.8%
CDC Corp. -7.0%
V alueClick Inc. -7.3%
LookS mart, Ltd. -8.0%
Tree.Com, Inc. -8.0%
DA DA S pA -8.3%
Y nk K orea Inc. -8.4%
Ngi G roup Inc. -9.3%
NetDragon WebS oft, Inc. -10.9%
K ings of t Co. Ltd. -18.3%
-0.3 -0.2 -0.1 0 0.1 0.2 0.3 0.4

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
G eoS entric Oyj (HL S E : G E O1V)
C DC C orp. (Nas daqG S : C HIN.A)
B etawave C orporation (OTC B B : B WAV) B etawa ve C orporation Appoints Ma rk O ltars h
a s C hief R evenue Officer
The9 L imited (Nas daqG S : NC TY)
E olith C o. L td. (K OS E : A041060)
Myriad G roup AG (S W X: MYR N)
The9 L imited (Nas daqG S : NC TY)
Quepas a C orp. (OTC B B : QP S A)
IAS E nergy, Inc . (OTC B B : IAS A.E )
Figure 7a. Key Developments
Source. Capital IQ
Headline
G eoS entric O yj R eports Una udited E arnings
R es ults for the T hird Q uarter a nd Nine Months the quarter, the compa ny's res ult for the period wa s nega tive a t E UR 4, 180, 000 on net s ales of E UR 529, 000, compa red to
E nded S eptember 30, 2009
C dc C orp. R eports Una udited C ons olidated
E arnings R es ults for the T hird Q uarter a nd
Nine Months E nded S eptember 30, 2009
T he9 Limited R eports Una udited C ons olidated
E arnings R es ults for the T hird Q uarter E nded
S eptember 30, 2009; R ecords $1. 8 Million a s
Impairment on Inves tment
E olith C o. Ltd. ha s completed a F ollow-on
E quity O ffering in the amount of K R W 999. 90
million.
L G E lectronics S elects Myriad a s P a rtner on
F irs t Android Device
T he9 Limited R eports Una udited C ons olidated T he9 Limited reported una udited cons olida ted ea rnings res ults for the third qua rter ended S eptember 30, 2009. F or the
E arnings R es ults for the T hird Q uarter E nded qua rter, the company's net revenues decrea s ed by 91% quarter-over-qua rter and decrea s ed by 94% yea r-over-year to C NY
S eptember 30, 2009
Q uepa s a C orp. Introduces T witter
S ynchronization T ool for Its O nline S ocia l
Network
IAS E nergy, Inc. R eports Una udited
C ons olida ted E a rnings R es ults for the F irs t
Q uarter E nded J uly 31, 2009
Page 8
Notes
G eoS entric O yj reported una udited earnings res ults for the third quarter a nd nine months ended S eptember 30, 2009. F or
res ult for the period was negative a t E UR 2, 782, 000 on net s ales of E UR 1, 064, 000, a yea r a go. L os s before taxes was E UR
4, 225, 000 vers us E UR 2, 909, 000 a yea r a go. Opera ting los s wa s E UR 4, 071, 000 compared to E UR 2, 981, 000 a yea r a go.
C DC C orp. reported una udited cons olida ted earnings res ults for the third quarter a nd nine months ended S eptember 30,
2009. F or the third quarter of 2009, the compa ny reported revenue of $76. 6 million a nd net income a ttributa ble to controlling
interes t of $5. 6 million, or $0. 05 per s ha re. T his compa res to revenue of $104. 1 million and a net los s attributable to
controlling interes t of $10. 0 million, or a los s per s ha re of $0. 09 for the third qua rter of 2008. T hird qua rter operating cas h
flow wa s $12. 1 million, compa red to $11. 2 million in the s econd qua rter of 2009, a nd a 52% increas e from $8. 0 million in the
third qua rter of 2008. T hird qua rter adjus ted E B IT DA from continuing opera tions or a djus ted E B IT DA was $9. 0 million
compa red to adjus ted E B IT DA of $13. 7 million in the third qua rter of 2008. Opera ting los s wa s $2 million a gains t opera ting
income of $0. 2 million reported a yea r a go. Income before income ta xes wa s $8. 5 million a ga ins t los s before income ta xes
of $4. 8 million reported a yea r a go. Income from continuing operations wa s $6. 6 million a gains t los s from continuing
opera tions of $7. 1 million a yea r a go. Net ca s h provided
by operating a ctivities was $12. 1 million a gains t $8 million a yea r a go. P urcha s e of property, plant & equipment wa s $2 million a ga ins
a yea r a go.
B eta wa ve C orporation a nnounced the a ppointment of Ma rk O lta rs h, former V ice P res ident and G roup P ublis her of B auer
P ublis hing's In T ouch W eekly and Life & S tyle ma ga zines , as the compa ny's new chief revenue officer, reporting to the C E O
Ma tt F reema n. Oltars h will be res pons ible for organizing B etawa ve's s ales force a nd introducing B eta wa ve's products a nd
publis hers to unta pped bra nd ma rketers and agencies . O lta rs h brings to B etawa ve more than 10 years of s a les a nd revenue
experience, particula rly in the publis hing world. At B a uer P ublis hing a nd s pecifica lly for In T ouch W eekly, the fa s tes t growing
magazine in the country, he increas ed a d revenue by over 150% over a three-yea r period. P rior to tha t, O lta rs h ros e ra pidly
to s a les lea ders hip a t S pin, C onde Na s t's Deta ils a nd V a nity F a ir, and Dennis P ublis hing's S tuff and Maxim. His pa s t two
s a les pos itions included res pons ibility for all digital revenue and ma jor media dea ls in broa dcas t a nd print.
T he9 Limited reported una udited cons olida ted ea rnings res ults for the third qua rter ended S eptember 30, 2009. F or the
qua rter, the company’s los s from opera tions was R MB 117, 290, 991 compared to profit of R MB 60, 000, 939 a yea r ago. Los s
before income tax expens e, impa irment los s on inves tment a nd s ha re of in equity inves tments wa s R MB 54, 135, 082
compa red to income of R MB 86, 635, 885 a year ago. L os s before impairment los s on inves tment and s hare of in equity
inves tment was R MB 58, 993, 354 compa red to income of R MB 80, 278, 728 a year ago.
In the third qua rter of 2009, the company recognized a n impa irment los s on inves tment of R MB 12. 2 million ($1. 8 million),
while there were no s uch impa irment los s es in the previous qua rter or in the third quarter of la s t yea r. T he impairment los s
wa s recognized after a n impairment review on equity inves tment in a S inga pore online ga me opera tor. T his inves tment has
been ma rked down to its es timated fa ir va lue a s of the qua rter end.
E olith C o. L td. has completed a F ollow-on E quity O ffering in the amount of K R W 999. 90 million.
Myria d G roup AG announced that it has been s elected by LG E lectronics a s the Open Mobile Allia nce (O MA) applica tions
partner and J 2ME pa rtner for its new Android device, L G G W 620, which is due to be releas ed November 2009 via both
O ra nge a nd C ana dia n ca rrier, R ogers .
25. 5 million ($3. 7 million), ma inly due to a decrea s e in revenue from W orld of W a rcra ft, for which the company’s licens e
a greement expired on J une 7, 2009. Net los s a ttributa ble to ordinary s ha reholders was C NY 73. 6 million ($10. 8 million),
repres enting a 7% decrea s e from a net los s of C NY 79. 2 million ($11. 6 million) in the previous qua rter and compared with
net income of C NY 80. 5 million ($11. 8 million) in the s a me period las t yea r. Interes t income wa s C NY 7. 2 million ($1. 1
million), compa red to C NY 6. 9 million ($1. 0 million) in the s econd qua rter of 2009 a nd C NY 15. 4 million ($2. 3 million) in the
third qua rter of 2008. T he year-over-yea r decrea s e was mainly due to a reduction in bank interes t ra tes a nd a decrea s e in
ca s h balances compa red with the s a me period la s t yea r. F ully diluted los s per s ha re a nd per ADS wa s C NY 2. 93 ($0. 43),
compa red with fully diluted los s es per s ha re of C NY 3. 15 ($0. 46) in the
s econd quarter of 2009 and fully diluted ea rnings per s hare of C NY 2. 91 ($0. 43) in the third quarter of 2008. F or the
third qua rter of 2009, non-G AAP adjus ted net los s wa s C NY 29. 6 million ($4. 3 million) compa red with non-G AAP net
income of C NY 3. 1 million ($0. 5 million) for the previous quarter a nd C NY 177. 3 million ($26. 0 million) for the s ame period of
diluted non-G AAP a djus ted net income per s hare of C NY 0. 12 ($0. 02) for the s econd qua rter of 2009 a nd C NY 6. 41
($0. 94) in the third quarter of 2008.
Q uepas a C orp. a nnounced the la unch of Q T weet, its new s ynchroniza tion tool for T witter. T he la unch of Q T weet is part of
Q uepas a's s trategy to provide its us ers with fun a nd enga ging tools tha t will allow them to further s hare their experiences
with other Q uepas a us ers . Q T weet is an a pplication tha t lets us ers cus tomize their Q uepa s a s ta tus in a wa y tha t dis pla ys
their mos t recent T witter upda tes in rea l time. O n their Q uepa s a profiles , us ers may choos e to dis play not only their pers ona l
T witter upda tes , but the upda tes of the people they follow on T witter. In a ddition, Q T weet a llows for celebrities who a re
members of Q uepas a to s ha re their T witter upda tes with their Q uepa s a a udience and als o enga ge in mea ningful dia logue
with Q uepa s a us ers a s they comment on the upda tes .
Q uepas a's relea s e of Q T weet is pa rt of its differentia ted s trategy of premium L atino content a nd enterta inment.
IAS E nergy, Inc. reported una udited cons olida ted ea rnings res ults for the firs t qua rter ended J uly 31, 2009. F or the period,
the company reported los s from operations of $157, 265 a nd net los s of $154, 310 or $0. 01 per ba s ic a nd diluted s ha re,
compa red to los s from opera tions of $150, 869 and net los s of $145, 009 on tota l revenue of $5, 407 for the s ame period la s t
yea r. Net cas h us ed in opera ting activities of $38, 828, compared to $28, 730 for the s a me period las t yea r.

K ey Developments
C ompany
F idelity Inves tments C anada L imited;
F luid Mus ic C anada, Inc . (TS X: F MN);
Hows on Tatters all Inves tment C ouns el
L imited; S omers et E ntertainment
Inc ome F und (TS X: S OM.UN)
E olith C o. L td. (K OS E : A041060)
NetDragon W ebS oft, Inc . (S E HK : 777)
G iant Interac tive Group, Inc.
(NYS E : G A)
NetDragon W ebS oft, Inc . (S E HK : 777)
Hurray! Holding C o. L td.
(Nas daqG M: HR AY); K u6.c om; S handa
Interac tive E ntertainment L td.
(Nas daqG S : S NDA); Youku.c om
J umbuck E ntertainment L imited
(AS X: J MB )
Figure 7b. Key Developments – continued
Source. Capital IQ
Headline
F luid Mus ic C a na da, Inc. (T S X: F MN)
completed the a cquis ition of S omers et
E ntertainment Income F und (T S X: S OM. UN)
from a group of s ha reholders .
Neurotech P ha rma C o. , Ltd. announced it
expects to receive K R W 19. 20 billion in
funding.
NetDra gon W ebS oft Inc. , B oard Meeting, Nov NetDra gon W ebS oft Inc. , B oard Meeting, Nov 25, 2009, a t 15: 00 C C T -C hina C oa s t, US S R Zone 7. Agenda : T o cons ider
25, 2009
G ia nt Interactive G roup, Inc. R eports
Unaudited C ons olida ted E a rnings R es ults for 2009. T he compa ny reported net revenue wa s R MB 290. 2 million ($42. 5 million), compa red to R MB 265. 2 million in the third
the T hird Q uarter E nded S eptember 30, 2009 ; qua rter 2008. Net income a ttributa ble to the compa ny's s ha reholders was R MB 197. 7 million ($29. 0 million), compa red to
P rovides R evenue G uida nce for the F ourth
Q uarter of 2009
NetDra gon W ebS oft, Inc. R eports Unaudited
C ons olida ted E a rnings R es ults for the T hird
Q uarter a nd Nine Months E nded S eptember
30, 2009
S ha nda T o R eportedly Acquire K u6. C om F or
$44 Million
J umbuck E nterta inment L imited Appoints
Da vid G ibbs a s C E O
Page 9
Notes
F luid Mus ic C a na da , Inc. (T S X: F MN) s igned a s upport agreement to a cquire S omers et E ntertainment Income F und (T S X :
S OM. UN) from a group of s hareholders for C AD 26. 1 million in cas h and s tock on O ctober 12, 2009. T he groups of
s ha reholders a re Andy B urges s , G ordon G ibs on, J a nis F inkels tein, Alla n S ilber, S heldon F inkels tein, J ay S mith, J a s on
Hendeles , F idelity Inves tments C a na da L imited a nd Hows on T a tters all Inves tment C ouns el L imited. F luid Mus ic will acquire
a ll of the outs tanding S omers et trus t units a t the election of the tendering holder (a ) $2. 12 in ca s h per unit (b) 1. 1 common
s ha res of F luid. F luid will intend to immediately proceed with a compuls ory a cquis ition or s ubs equent a cquis ition trans a ction
to a cquire the remaining units .
T he dea l is s ubject to lock up a greement, a pproval of the B oa rd of T rus tees of S omers et, employment agreements , a nd
a pproval of the a t leas t 66 2/3% s hareholders of S omers et, minimum tender condition, a ll domes tic or foreign regula tory
a pprovals like T S X. T he trans a ction wa s una nimous ly a pproved by the B oa rd of T rus tees of S omers et and recommends unit
holders accept the cas h offer a nd tenders their units to the offer. T D S ecurities Inc. acted a s
fina ncial advis or for S omers et. J effrey S inger a nd Amanda L inett of S tikema n E lliott LL P acted a s legal advis ors for
F luid Mus ic. T im Heeney of G oodma ns LL P and G ary S olway of B ennett J ones LL P a cted a s legal advis ors for
S omers et.
F luid Mus ic C a na da , Inc. (T S X: F MN) completed the a cquis ition of S omers et E nterta inment Income F und
(T S X: S OM. UN) from a group of s hareholders on November 25, 2009. T he tender offer expired on November 25,
2009 and all the conditions neces s ary for clos ing were s a tis fied. T he units held by the non-tendering s hareholders
were trans ferred to F luid with s uch s hareholders , who did not elect the form of pa yment, were deemed to have elected
the s hare cons idera tion.
Neurotech P ha rma C o. , Ltd. (K O S E : A041060) a nnounced a priva te placement of 37, 291, 000 common s ha res a t K R W 515
per s hare for gros s proceeds of K R W 19, 204, 865, 000 on November 25, 2009. T he tra ns a ction is expected to clos e on
December 7, 2009. T he s hares will be s ubs equently lis ted on K orea S tock E xchange.
a nd a pprove the una udited cons olida ted a ccounts of the compa ny a nd its s ubs idiaries for the three months and nine months
ended 30 S eptember 2009 a nd to a pprove the a nnouncement of the 3rd Q ua rterly R es ults to be publis hed on the webs ites
of T he S tock E xchange of Hong K ong Limited and the compa ny; to cons ider the payment of a n interim dividend, if a ny; to
cons ider the clos ure of the regis ter of members of the company, if neces s a ry; a nd to trans a ct any other bus ines s .
G ia nt Interactive G roup, Inc. reported unaudited cons olidated earnings res ults for the third quarter ended S eptember 30,
R MB 134. 1 million in the third qua rter 2008. B as ic and diluted ea rnings per America n Depos ita ry S ha re (ADS ) were R MB
0. 87 ($0. 13) and R MB 0. 84 ($0. 12), res pectively, compa red to ba s ic a nd diluted earnings per ADS of R MB 0. 56 a nd R MB
0. 54, res pectively, for the third quarter 2008. Non-G AAP net income attributable to the compa ny's s ha reholders excluding
non-cas h s ha re-ba s ed compens a tion was R MB 205. 4 million ($30. 1 million), compa red to R MB 148. 2 million in the third
qua rter 2008. B a s ic and diluted non-G AAP earnings excluding non-cas h s ha re-ba s ed compens a tion per ADS were R MB
0. 91 ($0. 13) and R MB 0. 88 ($0. 13), res pectively, compa red to ba s ic a nd diluted non-G AAP earnings per ADS of R MB 0. 61
a nd R MB 0. 59, res pectively, for the third qua rter 2008. T he
yea r-over-year increa s e was a ttributa ble to the recovery of ZT Online following G ia nt's s trategic decis ion to a djus t its
monetiza tion s tructure in mid-2008. Income from opera tions wa s R MB 191. 64 million compa red to R MB 105. 2 million
in the third qua rter 2008. Income before income tax expens es wa s R MB 215. 5 million compared to R MB 151. 1 million in
the third qua rter 2008. Net Income wa s R MB 197. 44 million compa red to R MB 134. 1 million in the third quarter 2008.
C omprehens ive income was R MB 191. 7 million compa red to R MB 195. 1 million in the third qua rter 2008.
T he compa ny provided revenue guida nce for the fourth qua rter of 2009. F or the fourth quarter 2009, the company
expects that its ZT O nline s eries will continue to be impa cted by cha nges made to its monetiza tion s tructure during
the third qua rter. In addition, while the newly la unched ga mes are performing in-line with the compa ny's expectations ,
monetiza tion for thes e ga mes is expected to remain in a prelimina ry s tage during the fourth qua rter 2009. As a res ult,
the company expects continued revenue pres s ure into the fourth qua rter of 2009, while contributions from the new
games a re expected to ramp up in the firs t half of 2010.
NetDra gon W ebS oft, Inc. reported unaudited cons olida ted earnings res ults for the third quarter a nd nine months ended
S eptember 30, 2009. F or the qua rter, the compa ny reported profit attributable to owners of R MB 19, 290, 000 or 3. 67 cents
per bas ic s ha re on revenue of R MB 150, 877, 000 compa red to profit a ttributa ble to owners of R MB 50, 434, 000 or 9. 45 cents
per bas ic s ha re on revenue of R MB 136, 618, 000 for the s ame quarter a yea r a go. P rofit before ta xation wa s R MB
22, 236, 000 compared to R MB 50, 434, 000 for the s a me qua rter a year a go.
S ha nda Interactive E nterta inment Ltd. is pla nning to a cquire K u6. com to build up a n integra ted s ervice s ite offering video.
According to an ins ider, the dea l will be completed for $44 million through Hurra y! Holding C o. L td. After the ta keover,
S ha nda is looking to merge Hurra y and K u6 into a new company. P rior to the dea l S ha nda was a ls o looking to a cquire
Y ouku. com, but fina lly s ettled on up K u6. S ha nda is reportedly pla nning to announce the K u6 a cquis ition around November
28, to ma rk the compa ny's tenth annivers ary, the report s aid. T he C E O of K u6, L I S ha nyou, s a id it will ma ke a public
s tatement a t a n a ppropriate time.
J umbuck E nterta inment Limited a nnounced the appointment of Da vid G ibbs a s C E O with effect from 1s t J anuary 2010.
Da vid has extens ive ma na gement experience with IT compa nies , founding the s ucces s ful online home loa n broker
eC hoice. com. au in 1997 as a J V between G etS ma rt. com a nd Allen & B uckeridge. F rom 2005 onwards David ha s been
ins trumenta l in building a W eb 2. 0 cons ulta ncy firm deploying the S a les force. com S oftwa re a s a S ervice pla tform, a nd ha s
been involved in other web-rela ted bus ines s es . He has extens ive interna tional experience in fina ncia l s ervices and
telecommunica tions , working in E urope, North America a nd a cros s As ia with McK ins ey & C ompa ny from 1985 to 1996.
 Page 10

K ey Developments
C ompany
Draper F is her J urvets on; Fidelity As ia
Ventures ; G G V C apital; Hurray!
Holding C o. L td. (Nas daqG M: HR AY);
K u6.com; S handa Interactive
E ntertainment L td. (Nas daqGS : S NDA)
Headline
K u6. com a greed to acquire Hurra y! Holding
C o. L td. (Na s daqG M: HR AY ) from S handa
Intera ctive E ntertainment L td. (Na s daqG S :
S NDA), G G V C a pital, F idelity As ia V entures ,
F idelity G rea ter C hina V entures F und L . P . ,
G ra nite G loba l V entures III, L . P , G ra nite
G loba l V entures , L. P . and other s ha reholders
in a revers e merger trans a ction.
Notes
K u6. com agreed to a cquire Hurra y! Holding C o. Ltd. (Nas da qG M: HR AY ) from S ha nda Interactive E nterta inment L td.
(Na s da qG S : S NDA), G G V C apita l, F idelity As ia V entures , F idelity G rea ter C hina V entures F und L. P . , G ra nite G lobal
V entures III, L . P , G ra nite G lobal V entures , L . P . and other s ha reholders in a revers e merger tra ns action on November 27,
2009. Hurra y! Holding will is s ue 723. 7 million ordinary s hares including 44. 4 million American Depos ita ry S ha res , ea ch
repres enting 100 ordinary s ha res . T he deal, s ubject to lock-up a greement a nd a pproval of s hareholders of Hurra y! Holding,
has been a pproved unanimous ly by B oard of Directors of Hurray! Holding. T he tra ns action is expected to clos e in the firs t
qua rter of 2010.
Da vis P olk & W ardwell LL P acted a s legal advis or to Hurray! Holding. Ha n K un La w O ffices and DLA P iper acted a s legal
a dvis ors to K u6. Morris on & F oers ter L L P a cts a s legal advis or to Dra per F is her J urvets on (DF J ) a nd other inves tors .

Ac tivis ion B lizzard, Inc.
(Nas daqG S : ATVI); C hina The9
Interac tive L imited; The9 L imited
(Nas daqG S : NC TY)
F ounder E lectronics C o. , L td. C laims C NY 408 F ounder E lectronics C o. Ltd. lifted its cla im for compens ations from Activis ion B lizzard, Inc. to C NY 408 million in a court
Million C ompens ations from Activis ion B lizzard hea ring in B eijing on November 26, 2009. T he dis pute between both s ides s tarted from J une 18, 2007. F ounder E lectronics
filed a la ws uit a ga ins t Activis ion B lizzard, C hina T he9 Intera ctive L imited, a nd T he9 L imited, s uing them for infringing its
copyright of five word s tocks and letterforms in W orld of W a rcra ft (W oW ), the worldwide online ga me s trength of Activis ion
B lizza rd. And the cla imed compens ation wa s C NY 100 million then. O n O ctober 8, 2009, F ounder E lectronics s ubmitted an
a pplication to the local court, claiming for more compens a tions , in a n excus e that T he9 Intera ctive a nd T he9 Limited ha d
obta ined operating revenues of C NY 2. 247 billion from the opera tion of W oW in Mainla nd C hina. Mea nwhile, T he9 diverged
with Activis ion B lizzard in the opera tion of T he B urning C rus ade (T B C ), the firs t expans ion pack of W oW , in J une 2009. T he
US ga me developer la ter gra nted the opera tion right to NetE as e. com Inc. after its contra ct with T he9 expired.

L ingo Media C orporation (TS XV: L M)
L ingo Media C orporation R eports Una udited
C ons olida ted E a rnings R es ults for the T hird
Q uarter a nd Nine Months E nded S eptember
30, 2009
L ingo Media C orporation reported una udited cons olidated ea rnings res ults for the third qua rter and nine months ended
S eptember 30, 2009. F or the qua rter, the compa ny reported net los s of C AD 1, 050, 338 on revenue of C AD 183, 624 aga ins t
net los s of C AD 747, 725 on revenue of C AD 32, 415 in the s a me period of la s t year. L os s before other items wa s C AD
1, 035, 515 aga ins t C AD 658, 066 in the s ame period of las t yea r. Los s from continuing operations was C AD 1, 050, 338 or
C AD 0. 08 per s ha re a ga ins t los s from continuing opera tions of C AD 662, 760 or C AD 0. 07 per s hare in the s ame period of
la s t year. Net ca s h us ed in operating opera tions wa s C AD 502, 200 aga ins t net ca s h provided by operating a ctivities of C AD
470, 223 in the s a me period of la s t year. P urchas e of property and equipment was C AD 3, 243 a ga ins t C AD 558 in the s ame
period las t yea r.

S ohu.c om Inc . (Nas daqG S : S OHU)
is eemedia Inc . (TS XV: IE E )
S ohu. C om Announces Ma na gement S ohu. com Inc. announced the promotion of Ms . B elinda W a ng to C o-P res ident a nd C hief Opera ting O fficer, and Mr.
P romotions Xia ochua n W ang to C hief T echnology O fficer.
is eemedia Inc. , Annual G eneral Meeting, Nov is eemedia Inc. , Annual G eneral Meeting, Nov 30, 2009, a t 16: 00 US E a s tern T ime. Loca tion: Le Meridien K ing E dwa rd 37
30, 2009 K ing S treet E as t, T oronto, O ntario, C a nada. Agenda: T o receive and cons ider the a udited cons olida ted financia l s ta tements
of the corporation for the fis ca l yea r ended J une 30, 2009, together with the report of the auditors thereon; to elect directors ;
to a ppoint auditors a nd to a uthorize the directors to fix their remuneration; a nd to tra ns act s uch further or other bus ines s a s
may properly come before the Meeting or any adjournment or adjournments thereof.

Figure 7c. Key Developments – continued

Source. Capital IQ
 Page 11

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 89 companies have market caps under US$100 million, with 38 under
US$25 million. Online gaming companies dominate the top of the list, led by Tencent Holdings (SEHK:700) with a market
cap of approximately US$33.6 billion.

Market C ap (US D m)
Tencent Holdings Ltd. 33587.4
Neteas e. com Inc. 4949.3
S handa Interactive Entertainment Ltd. 3352.0
Modern Times G roup Mtg A B 2933.7
IA C/InterA ctiveCorp. 2566.8
G ree, Inc. 2303.0
Perf ect World Co. , Ltd. 2195.8
Open Tex t Corp. 2146.4
S ohu. com Inc. 2144.4
Changy ou. com Limited 1785.9
G iant Interactive G roup, Inc. 1592.1
Mix i, Inc. 1206.3
Chines e G amer International 1141.1
K ings of t Co. Ltd. 818.1
V alueClick Inc. 807.8
NEOWIZ G ames Corporation 746.4
United Online Inc. 575.2
S hutterf ly , Inc. 368.2
NetDragon WebS of t, Inc. 301.4
S K Communications Co. , Ltd. 264.6
XING A G 254.0
CDC Corp. 252.2
OA O R B C Inf ormation S y s tems 222.0
G amania Digital Entertainment Co., 219.8
G igaMedia Ltd. 219.2
My riad G roup A G 207.9
Openw ave S y s tems Inc. 197.1
The9 Limited 189.6
G ungHo Online Entertainment, Inc. 182.3
A ctoz S of t Co. , Ltd. 158.7
DA DA S pA 149.0
Fluid Mus ic Canada, Inc. 116.0
NeuLion Incorporated 85.6
Y D Online Corp. 76.9
Cy berplex Inc. 73.7
TheS treet.com, Inc. 71.3
Tree. Com, Inc. 70.3
G ameOn Co Ltd. 67.5
HanbitS of t, Inc. 67.3
Frogs ter Interactive Pictures A G 66.6
G eoS entric Oy j 52.6
PNI Digital Media Inc. 51.9
S park Netw orks , Inc. 49.1
G ravity Co., Ltd 41.7
NeXplore Corporation 41.3
DigitalTow n, Inc. 38.3
DXN Holdings B hd 37.2
Eolith Co. Ltd. 34.0
A s s ociated Media Holdings Inc. 32.9
Webz en Inc. 32.3
Ngi G roup Inc. 30.8
A Q Interactive, Inc. 24.6
Wiz z ard S of tw are Corporation 24.1
Northgate Technologies Limited 23.4
S ocialw is e, Inc. 22.9
LookS mart, Ltd. 17.8
Quepas a Corp. 17.7
Dolphin Digital Media, Inc. 17.1
Y nk K orea Inc. 16.5
A cceleriz e New Media, Inc. 15.8
J umbuck Entertainment Limited 14.0
Ex tens ions , Inc. 13.3
MOK O. mobi Limited 11.1
Lingo Media Corporation 11.0
Magnitude Inf ormation S y s tems Inc. 10.6
V OIS , Inc. 9.9
is eemedia Inc. 9.4
IA S Energy , Inc. 7.8
B roadWebA s ia Inc. 7.6
S pectrumDNA , Inc. 6.8
Worlds . com Inc. 5.4
B right Things plc 5.3
UOMO Media, Inc 5.2
DigitalPos t Interactive, Inc. 4.6
CornerWorld Corporation 2.9
B ey ond Commerce, Inc. 2.6
B etaw ave Corporation 2.3
S NA P Interactive, Inc. 2.2
B igs tring Corp. 1.9
LiveWorld Inc. 1.0
Unis erve Communications Corp. 0.9
Wy nds torm Corporation 0.7
K A B Dis tribution Inc. 0.6
CLICK ER Inc. 0.5
The Parent Company 0.2
China G atew ay Corporation 0.0
Dibz International, Inc. 0.0
S NM G lobal Holdings 0.0
S ocial Media V entures Inc. 0.0
0 500 1, 000 1, 500 2, 000 2,500 3, 000 3, 500 4,000

Figure 8. Market Cap Rankin

Source. Capital IQ
 Page 12

TEV/Revenue (LTM) averages 5.7x: The overall average TEV/Revenue (LTM) multiple for our group is 5.7x (vs. 5.1x last
week) (Figure 9). Four companies trade above 25x revenue – SpectrumDNA, Inc. (OTCBB:SPXA) at 48.7x, Bigstring Corp.
(OTCBB:BSGC) at 46.4x, Dolphin Digital Media, Inc. (OTCBB:DPDM) at 31.0x, and NexPlore Corporation (OTCPK:NXPC)
at 26.6x. The median of 1.6x compares with 1.5x last week. Note that we exclude multiples greater than 50x. Thirty-two
companies have multiples under 1.5x.

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

60. 0

48.7
50. 0 46.4

40. 0

31.0
30. 0 26.6
23.2
20.4
20. 0
14.6 15.5
12.0
10.5
8.4
10. 0
A v erage, 5. 7 7.1 7.7
5.7 5.8 6.8
4.5 4.9 5.0 5.4 5.6
1.9 2.3 2.4 2.7 3.0 3.2 3.2 3.2 3.6
1.1 1.2 1.2 1.3 1.3 1.4 1.5 1.7 1.7
0.0 0.0 0.0 0.1 0.2 0.2 0.2 0.2 0.3 0.5 0.5 0.5 0.5 0.5 0.6 0.7 0.7 0.8 0.8 0.8 1.0 1.0 1.0 1.1 1.1
0. 0

N E O WIZ G ames C orporation

J umbuc k E nterta inment L imited

MO K O .mobi L imited
UO MO Media, Inc
C LIC K E R Inc.

G ungHo O nline E ntertainment, Inc.

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

P N I Digital Media Inc.

C hines e G amer Interna tional

U nis erve C ommunications C orp.
O AO R B C Information S y s tems

N orthgate T echnologies L imited

DXN Holdings B hd

C hangy ou.com L imited

T ree.C om, Inc.

C DC C orp.

B ey ond C ommerc e, Inc.

S K C ommunica tions C o., Ltd.

DigitalP os t Intera ctive, Inc.

F luid Mus ic C a nada , Inc.

Dolphin Digital Media, Inc.

T he P a rent C ompany

Modern T imes G roup Mtg AB

G eoS entric O y j
S N M G loba l Holdings

NeuLion Inc orporated

C ornerWorld C orporation

Lingo Media C orporation

NeX plore C orporation

T heS treet.com, Inc .
S NAP Intera ctive, Inc.

United O nline Inc .

O pen T ex t C orp.

S pec trumDNA, Inc.

C hina G atewa y C orporation
AQ Intera ctive, Inc .

C y berplex Inc .

IAC /InterAc tiveC orp.

G igaMedia Ltd.

S pa rk N etwork s , Inc .

V alueC lic k Inc .

Y D O nline C orp.
NetDra gon WebS oft, Inc .

E olith C o. Ltd.

S ohu.com Inc .

is eemedia Inc .

F rogs ter Intera ctiv e P ictures AG

Mix i, Inc .

G ree, Inc .

T encent Holdings Ltd.

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

H anbitS oft, Inc .

Y nk K orea Inc .

S ocial Media V entures Inc .

B igs tring C orp.

My riad G roup AG
S hutterfly , Inc .

Acceleriz e New Media , Inc .

K ings oft C o. Ltd.

DADA S pA

Ac toz S oft C o. , Ltd.

Wiz z ard S oftware C orporation

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 (18), trading at an average multiple of 14.7x (vs. 11.1x last week). On a geographic basis, the
United States has the most companies (38), trading at an average of 8.5x revenue (vs. 6.6x last week) (Figure 11). Ten of
the companies are Canadian (average 3.7x revenue).

Average TEV/LTM Revenue - By Country

Average TEV/LTM Revenue - By Exchange 14.0
16.0 14.7 12.0
14.0 12.0
12.0 12.0 10.0
10.0 10.2 8.5
8.0
7.5
(x)
(x)

8.0 8.4 6.7 5.9

8.0 7.5 6.0
6.0 6.5 6.1 5.0 4.8
5.0 4.1 4.0 3.7
4.0 3.2 2.9 3.2
1.8 1.7 1.6 1.2 0.8 0.6
2.0 0.5 0.2 2.0 1.8 1.7 0.8 0.7
0.6 0.5
0.0 0.0 0.0 0.0
OTCPK
OTCBB

GTSM

NasdaqGM
HLSE
SEHK

TSE

KOSE

NasdaqGS
OSE
CM

RTS
OM
TSX

XTRA

AMEX

KLSE
BSE
SWX
TSXV
ASX

Germany
Finland
United

China

Japan

Canada

Hong Kong

Malaysia

India

Russia
Italy
South
Korea
States
Australia

Taiwan

Switzerland

Sweden

# Companies 18 1 3 2 4 2 11 5 2 4 1 2 6 1 14 1 1 1 1 5 1
# Companies 1 38 2 10 3 2 6 10 1 8 1 1 1 1 1 1

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

Source. Capital IQ
 Page 13

TEV/EBITDA (LTM) averages 11.3x: The average multiple for the 36 companies with positive EBITDA (and multiples
under 100x) is 11.3x LTM EBITDA (vs. 12.8x last week), led by Tencent Holdings Ltd. (SEHK:700) at 45.4x (Figure 12).
Sixteen companies have EBITDA multiples under 7x. The median multiple is 8.6x (vs. 12.8x last week).

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

50. 0
45. 4
45. 0

40. 0 37. 2

35. 0

30. 0 26. 8
25. 0 23. 3
21.1 21. 6
20. 0 18.0
14.8
13. 2
15. 0 A verage, 11. 3 11. 7 12. 3 12. 5 12. 7
10. 5 11. 1 11. 2
9. 4 9. 5
10. 0 7. 3 7. 9
6. 2 6. 8
4. 5 4. 6 4. 6 4. 6 5.0 5.3 5.4
5. 0 3. 5 3. 9
0. 4 0. 5 0. 9 1. 1 1. 2
0. 0

NE O WIZ G ames C orporation

J umbuck E ntertainment L imited

G ungH o O nline E ntertainment, Inc .

G amania Digital E ntertainment C o. , Ltd.

P NI Digital Media Inc .

C hines e G amer International

U nis erve C ommunications C orp.

O AO R B C Information S y s tems

C hangy ou. c om L imited

T ree. C om, Inc .

C DC C orp.

S K C ommunic ations C o. , Ltd.

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

T heS treet. c om, Inc .

U nited O nline Inc .

O pen T ex t C orp.
AQ Interac tive, Inc .

S park Network s , Inc .

C yberplex Inc.

V alueC lic k Inc .

NetDragon WebS oft, Inc.

Y D O nline C orp.

S ohu. c om Inc .

IAC /InterAc tiveC orp.

G ree, Inc .

Mix i, Inc .

T enc ent Holdings L td.

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

Y nk K orea Inc.

O penwave S y s tems 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 (18), trading at an average multiple of 1.2x. On a geographic basis, the
United States has the most companies (38), trading at an average of 6.5x EBITDA (Figure 14). Ten of the companies are
Canadian (average 18.5x EBITDA).

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

35.0 29.4 20.0
18.0 18.5
30.0
16.0 17.3
25.0 14.0
20.0 21.2 12.0 13.5
(x)

17.3 12.3 11.8 11.7

(x)

15.0 10.0 11.4 11.1

13.9
12.3 11.7 11.4 8.0
10.0 8.4 6.5
6.2 5.3
4.6 4.5 4.0 6.0 6.2
5.0 1.2 1.1
0.4 4.0
0.0 1.1
2.0
OTCBB
GTSM

NasdaqGM
SEHK

TSE

KOSE

NasdaqGS

OSE

RTS
OM

CM
XTRA

TSX

AMEX
TSXV

ASX

0.0 0.4
Germany
Canada

China

Japan

Hong

United

Russia
Italy
South
Korea

Kong

States
Taiwan

Australia
Sweden

# Companies 4 3 2 5 1 2 6 14 1 1 4 2 5 18 2 1 10 3 10 1 6 2 8 1 38 1 2 1
# Companies

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

Source. Capital IQ
 Page 14

P/E (LTM) averages 20.8x: The average multiple for the 33 companies with positive earnings (and multiples under 100x)
is 20.8x LTM EPS (vs. 19.1x last week), led by HabitSoft, Inc. (KOSE:A047080) with a 67.1x multiple (Figure 15). Thirteen
companies have P/E multiples under 10x. The median is 13.1x.

P /E L T M (x)

80.0

70.0 67.1
63.3
60.3
58.4
60.0

50.0 46.8

38.8 39.0
40.0
33.5 34.2 35.0

30.0
22.9 23.2
A verage, 20.8
20.0 15.8 16.3 16.3
13.1 14.6
10.9 12.0 12.1
8.7
10.0 6.8 7.0 8.2
2.4 2.7 2.7 4.0 5.5
1.7 2.2
0.0 0.0
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

G ravity C o., Ltd

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.

Y D O nline C orp.

G igaMedia Ltd.

IAC /InterActiveC orp.

S ohu.com Inc.

NetDragon W ebS oft, Inc.

S park Network s , Inc.

G ree, Inc.

T encent H oldings Ltd.

Mix i, Inc.
XING AG
W ebz en Inc.

P erfect World C o., Ltd.

LiveW orld Inc.

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 (18), trading at an average multiple of 12.0x. On a geographic basis, the United States has
the most companies (38), trading at an average of 25.6x earnings (Figure 17). Ten of the companies are Canadian
(average 26.9x EPS).

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

40.0
70.0 35.1
63.3
35.0
60.0
30.0
50.0 33.5
35.4 34.3 34.2 25.0 26.9 25.6
40.0
(x)

33.5 22.8
(x)

30.0 29.8 29.1 20.0 22.3

20.0 16.3 15.8 12.0 15.0 15.8

11.3 7.0 12.6
10.0 5.5 10.0
4.0 5.5 4.0
0.0 1.7 0.0 5.0
OTCPK

OTCBB
GTSM

NasdaqGM
TSE

KOSE

OSE

SEHK

NasdaqGS
OM
XTRA

AMEX

TSX

KLSE

NYSE
ASX

0.0
Germany
Japan

Canada

United

China

Malaysia
South
Korea
States

Taiwan

Australia
Sweden

# Companies 11 5 6 1 2 3 2 2 1 18 14 4 1 2 1 5
# Companies 6 2 10 38 8 3 1 10 1 2

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

Source. Capital IQ
 Page 15

UPCOMING EVENTS

E arnings C alendar
C ompany Date Time Quarter C onf C all Details
Shanda Interactive Entertainment Ltd. (NasdaqGS:SNDA) 1-Dec-09 9:30 a.m. EST Q3/09 866-271-6130

Figure 18. Earnings Calendar

Source. Company reports
 Page 16

C omparable C ompany Analys is > Web 2.0

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

A ccelerize New Media, Inc. US D AC L Z OT C B B 15.8 0.55 -24.7% 0.0% -3.5% 5. 8% 37.5% -31.3%
A ctoz S oft C o. , L td. KR W A052790 K OS E 158.7 21, 850 30.8% 42.3% 18.1% -26.9% 127. 4% -39.3%
A Q Interactive, Inc. JPY 3838 TS E 24.6 40, 450 1. 1% -13.9% -20.2% -46.8% 23.3% -51.3%
A s s ociated Media H oldings Inc. US D AS MH OT C P K 32.9 0.76 8344.4% 5328. 6% 5328. 6% 50566. 7% 25233.3% 0.0%
B igs tring C orp. US D BSGC OT C B B 1.9 0.03 -3.2% -11.8% 25.0% 25.0% 36.4% -47.4%
B eta wave C orpora tion US D B W AV OT C B B 2.3 0.08 165.8% 100.0% 60.0% 23.1% -60. 0% -68.0%
B eyond C ommerce, Inc. US D B Y OC OT C B B 2.6 0.05 -14.0% -38.7% -75.1% -94.9% -96. 0% -97.6%
B right T hings plc GB P AIM:B G T A IM 5.3 0.01 4. 3% -10.9% -10.9% -2.0% 42.4% -50.4%
B roadW ebA s ia Inc. US D BWBA OT C P K 7.6 0.09 28.6% 200.0% -60.9% -69.8% -91. 1% -96.9%
C DC C orp. US D C H IN.A Nas da qG S 252.2 2.38 -7.0% 2.1% 6.7% 46.9% 186. 7% -39.3%
C ha ngyou.com Limited US D C Y OU Nas da qG S 1, 785.9 32.47 -4.4% 7.8% -15.9% -15.7% NM -32.9%
C hina G a tewa y C orporation US D CGWY OT C P K 0.0 0.00 -86.7% -86.7% -86.7% 0. 0% -80. 0% -93.3%
C hines e G a mer International TWD G T S M:3083 GTS M 1, 141.1 440.00 -3.7% 5.5% 1.4% 34.1% 424. 4% -15.2%
C LIC K E R Inc. US D CLK Z OT C B B 0.5 0.01 9. 1% -29.4% 0.0% 114.3% -92. 5% -96.3%
C ornerW orld C orpora tion US D CW R L OT C B B 2.9 0.03 -25.0% -50.0% -50.0% -66.7% -93. 3% -93.6%
C yberplex Inc. C AD T S X: C X TS X 73.7 1.22 -3.9% -12.9% -10.3% -23.8% 306. 7% -38.7%
DADA S pA E UR C M:DA CM 149.0 6.28 -8.3% -13.6% -2.6% 10.1% -7.7% -23.4%
DXN Holdings B hd MY R DXN K LS E 37.2 0.57 -7.3% -12.3% 2.7% 44.3% 42.5% -17.4%
Dibz Interna tional, Inc. US D DIB Z OT C 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 OT C B B 4.6 0.05 6. 0% -3.6% 6.0% 165.0% 165. 0% -46.5%
DigitalT own, Inc. US D DG T W OT C B B 38.3 1.40 16.7% -30.0% 3.7% 7. 7% -30. 0% -60.0%
Dolphin Digital Media, Inc. US D DP DM OT C B B 17.1 0.30 0. 0% -16.7% -38.8% -45.5% -62. 0% -64.7%
E olith C o. L td. KR W A041060 K OS E 34.0 560.00 -2.6% 3.7% -37.8% -23.3% 6.7% -51.7%
E xtens ions , Inc. US D E XT I OT C P K 13.3 0.30 20.0% -14.3% 275.0% 100.0% 471. 4% -70.3%
F luid Mus ic C anada, Inc. C AD T S X: F MN TS X 116.0 2.00 2. 6% 5.8% 42.9% 156.4% 669. 2% -7.0%
F rogs ter Intera ctive P ictures AG E UR FR G XT R A 66.6 17.75 7. 1% 2.5% -1.9% 122.7% 312. 8% -17.4%
G amania Digita l E ntertainment C o., L td. TWD 6180 GTS M 219.8 46.45 -0.1% 1.4% -8.9% -10.7% 267. 2% -32.5%
G ameO n C o L td. JPY 3812 TS E 67.5 62, 400 -4.1% -27.0% -40.2% -47.1% -58. 5% -58.9%
G eoS entric Oyj E UR G E O1V H LS E 52.6 0.04 0. 0% -20.0% -20.0% -20.0% 0.0% -33.3%
G ia nt Interactive G roup, Inc. US D GA NY S E 1, 592.1 7.03 2. 6% -3.8% -5.0% -19.3% 19.0% -26.5%
G igaMedia L td. US D G IG M Nas da qG S 219.2 4.02 -0.7% -2.0% -12.4% -33.9% -7.8% -48.0%
G ra vity C o., Ltd US D GR VY Nas da qG M 41.7 1.50 4. 2% -7.4% -6.8% 40.2% 158. 6% -43.0%
G ree, Inc. JPY T S E :3632 TS E 2, 303.0 4, 600 5. 5% -8.5% 10.6% 49.6% NM -19.4%
G ungH o Online E ntertainment, Inc. JPY 3765 OS E 182.3 142, 300 -9.7% -33.6% -39.6% -42.6% 43.7% -49.2%
H anbitS oft, Inc. KR W A047080 K OS E 67.3 3, 670 4. 6% 7.6% -9.7% -29.6% 31.1% -44.7%
IAC /InterA ctiveC orp. US D IA C I Nas da qG S 2, 566.8 19.45 -2.6% 2.7% 4.9% 21.8% 28.3% -8.6%
IAS E nergy, Inc. US D IA S A. E OT C B B 7.8 0.11 -7.6% 5.7% -7.5% -57.3% 270. 0% -60.4%
is eemedia Inc. C AD IE E T S XV 9.4 0.20 -2.5% 39.3% 290.0% 143.8% 290. 0% -27.8%
J umbuck E ntertainment Limited AU D AS X: J MB AS X 14.0 0.33 -1.5% -8.3% -14.3% -26.7% -25. 0% -34.0%
K AB Dis tribution Inc. C AD T S X: K AB TS X 0.6 0.01 -50.0% -99.2% -99.2% -98.6% -99. 4% -99.4%
K ings oft C o. L td. HK D 3888 S E HK 818.1 5.80 -18.3% -20.5% -32.9% 8. 2% 152. 2% -38.8%
L ingo Media C orpora tion C AD T S XV :LM T S XV 11.0 0.96 -3.0% 1.1% -4.0% -5.0% -4.0% -32.9%
L iveW orld Inc. US D LV W D OT C P K 1.0 0.03 -3.1% -22.5% -38.0% -61.3% -38. 0% -87.6%
L ookS mart, L td. US D LO OK Nas da qG M 17.8 1.04 -8.0% -20.6% -11.1% -18.8% -32. 9% -41.7%
Ma gnitude Information S ys tems Inc. US D MAG Y OT C B B 10.6 0.02 0. 0% 118.2% 200.0% 84.6% 4.3% -38.5%
Mixi, Inc. JPY 2121 TS E 1, 206.3 700,000.00 0. 1% -6.3% 16.3% 44.0% 20.1% -11.5%
Modern T imes G roup Mtg AB SEK MT G B OM 2, 933.7 310.00 -5.3% -1.3% 6.5% 41.2% 141. 2% -8.8%
MO K O .mobi L imited AU D MK B AS X 11.1 0.12 0. 0% 50.0% 69.0% 81.8% 200. 0% -7.7%
Myriad G roup AG C HF MY R N S WX 207.9 4.85 0. 4% 3.2% 10.2% -8.5% -20. 1% -31.7%
NE O W IZ G ames C orporation KR W A095660 K OS E 746.4 42,250.00 2. 2% 7.0% 26.5% 10.5% 415. 2% -5.9%
NetDra gon W ebS oft, Inc. HK D 777 S E HK 301.4 4.42 -10.9% -8.5% -23.5% -16.9% 27.0% -38.2%
Netea s e. com Inc. US D NT E S Nas da qG S 4, 949.3 38.24 1. 0% -1.0% -7.6% 5. 4% 102. 9% -21.2%
NeuLion Incorpora ted C AD T S X: NL N TS X 85.6 0.80 -4.8% 9.6% -28.6% 3. 9% 166. 7% -38.5%
NeXplore C orpora tion US D NXP C OT C P K 41.3 0.74 5. 7% 5.7% 23.3% 5. 7% -41. 7% -49.0%
Ngi G roup Inc. JPY 2497 TS E 30.8 22,200.00 -9.3% -21.0% -27.2% -39.5% -54. 2% -62.9%
Northgate T echnologies Limited INR 590057 BSE 23.4 32.25 19.2% 10.1% -21.1% -37.7% -35. 5% -56.7%
O pen T ext C orp. US D OT E X Nas da qG S 2, 146.4 38.07 3. 8% 2.8% 10.0% 10.6% 40.9% -8.1%
O penwa ve S ys tems Inc. US D OP W V Nas da qG S 197.1 2.36 -5.6% 4.0% -13.6% 27.6% 391. 7% -24.6%
P erfect W orld C o., Ltd. US D PWRD Nas da qG S 2, 195.8 44.13 1. 1% 0.3% 18.8% 104.2% 141. 5% -12.6%
P NI Digital Media Inc. C AD T S XV :P N T S XV 51.9 1.65 -2.9% -5.7% -8.3% 10.0% 10.0% -22.5%
Q uepa s a C orp. US D QP S A OT C B B 17.7 1.39 12.1% 3.7% -0.7% 37.6% -34. 4% -40.9%
O AO R B C Information S ys tems US D R BCI R TS 222.0 1.60 0. 0% 6.7% 52.4% 62.4% 6.7% -5.9%
S ha nda Interactive E nterta inment L td. US D S NDA Nas da qG S 3, 352.0 49.84 0. 8% 14.1% 1.5% -18.9% 91.0% -23.3%
S hutterfly, Inc. US D S F LY Nas da qG S 368.2 14.34 -3.6% 1.7% 4.6% 0. 9% 107. 8% -20.9%
S K C ommunications C o. , L td. KR W A066270 K OS E 264.6 7,540.00 -5.8% 3.9% -18.6% -34.7% 69.8% -41.3%
S NA P Intera ctive, Inc. US D S TVI OT C B B 2.2 0.20 -50.0% -42.9% -50.0% -62.3% -73. 2% -81.5%
S NM G loba l H oldings US D S NMN OT C P K 0.0 0.00 20.0% -33.3% -45.5% -40.0% -96. 6% -99.4%
S ocial Media V entures Inc. US D S MV I OT C P K 0.0 0.01 60.0% 50.0% -90.4% 20.0% -98. 9% -99.8%
S ocialwis e, Inc. US D S CLW OT C B B 22.9 0.49 19.5% -15.5% -14.0% -30.0% -63. 7% -73.8%
S ohu.com Inc. US D S O HU Nas da qG S 2, 144.4 55.76 3. 5% 0.3% -7.5% -16.7% 25.0% -22.9%
S pa rk Networks , Inc. US D LO V A ME X 49.1 2.39 -4.1% -11.6% 1.6% 6. 1% -12. 5% -20.4%
S pectrumDNA, Inc. US D S P XA OT C B B 6.8 0.14 0. 0% 40.0% -37.8% -62.2% -33. 3% -68.9%
T encent H oldings Ltd. HK D 700 S E HK 33,587. 4 143 -3.2% 4.5% 24.2% 61.1% 225. 7% -6.3%
T he P a rent C ompany US D K IDS . Q OT C P K 0.2 0.01 0. 0% 0.0% -50.0% -65.0% -98. 9% -99.2%
T he9 L imited US D NC T Y Nas da qG S 189.6 7.55 0. 0% 0.7% 2.6% -36.3% -38. 4% -54.6%
T heS treet.com, Inc. US D TS CM Nas da qG M 71.3 2.33 -1.7% -6.4% -4.5% 21.4% -24. 8% -37.7%
T ree.C om, Inc. US D TR E E Nas da qG M 70.3 6.45 -8.0% -17.4% -7.2% -39.8% 293. 3% -50.7%
U nis erve C ommunica tions C orp. C AD T S XV :US S T S XV 0.9 0.04 -20.0% -20.0% -11.1% -20.0% 0.0% -60.0%
U nited O nline Inc. US D UNT D Nas da qG S 575.2 6.80 -4.1% -15.0% -1.4% -3.8% 5.1% -28.1%
U OMO Media, Inc US D UO MO OT C B B 5.2 0.06 -9.1% -16.7% -57.1% -75.0% -50. 0% -94.3%
V alueC lick Inc. US D V CLK Nas da qG S 807.8 9.43 -7.3% -4.2% -6.1% -14.5% 37.3% -32.4%
V OIS , Inc. US D V O IS OT C B B 9.9 0.01 0. 0% 71.4% 140.0% 242.9% 60.0% -47.8%
W ebzen Inc. US D W ZE N Nas da qG M 32.3 2.72 -4.2% -6.5% -3.9% -39.6% 262. 7% -41.9%
W izzard S oftwa re C orporation US D W ZE A ME X 24.1 0.45 -2.2% 9.8% 4.7% -28.6% -54. 5% -74.0%
W orlds .com Inc. US D W DDD OT C B B 5.4 0.10 0. 0% 0.0% -16.7% -23.1% -54. 5% -56.5%
W ynds torm C orpora tion US D W Y ND OT C P K 0.7 0.04 -60.0% -60.0% -60.0% -92.2% -66. 7% -92.2%
XING A G E UR O1B C XT R A 254.0 32.90 1. 1% -6.4% 13.4% 3. 3% 21.9% -13.4%
Y D Online C orp. KR W A052770 K OS E 76.9 6,120.00 -0.5% -12.6% -30.5% -38.8% 0.0% -50.6%
Y nk K orea Inc. KR W A023770 K OS E 16.5 3,695.00 -8.4% -9.5% -12.3% -50.1% -26. 1% -57.5%
H igh 8344.4% 5328. 6% 5328. 6% 50566. 7% 25233.3% 0.0%
L ow -86.7% -99.2% -99.2% -98.6% -99. 4% -99.8%
Average 780.8 93.2% 59.5% 59.6% 569.7% 347.8% -45.7%
Media n -0.7% -2.8% -6.8% -8.5% 10.0% -41.3%

Figure 19. Price Performance

Source. Capital IQ
 Page 17

C omparable C ompany Analys is > Web 2.0

Valuation Multiples
P rimary US D Market TE V/L TM TE V/ NTM TE V/L TM TE V/NTM
C ompany Name S ec tor C ountry E xc hange Ticker C ap ($m) R evenue R evenue E B ITDA E B ITDA P /L TM E P S P /NTM E P S P /TangB V
Accelerize New Media, Inc. Direct Marketing U nited S ta tes OTCB B AC LZ 15.8 5.0x - - - - - -
Actoz S oft C o., Ltd. G aming S outh K orea K OS E A052790 158.7 1.0x - 4. 6x - 22.9x - 2.4x
AQ Intera ctive, Inc. G aming J apan TS E 3838 24.6 0.0x - 0. 5x - - - 0.4x
As s ocia ted Media Holdings Inc. Mobile U nited S ta tes OTCP K AS MH 32.9 - - - - - - -
B igs tring C orp. Ins ta nt Mes s aging U nited S ta tes OTCB B BSGC 1.9 46.4x - - - - - -
B etawave C orpora tion Media U nited S ta tes OTCB B B W AV 2.3 - - - - - - 1.6x
B eyond C ommerce, Inc. S ocial Networking U nited S ta tes OTCB B B YOC 2.6 1.1x - - - - - -
B right T hings plc S ocial Networking U nited K ingdom AIM AIM:B G T 5.3 - - - - - - -
B roadW ebAs ia Inc. S ocial Networking U nited S ta tes OTCP K BWBA 7.6 - - - - - - -
C DC C orp. G aming H ong K ong N as da qG S C HIN.A 252.2 0.7x 0.7x 11.1x 5.8x - - 10.7x
C hangyou.com Limited G aming C hina N as da qG S C Y OU 1,785.9 5.8x 4.8x 9. 4x 7.4x 12.1x 10.4x 9.3x
C hina G atewa y C orpora tion Mobile U nited S ta tes OTCP K CGW Y 0.0 0.0x - - - - - -
C hines e G amer Interna tional G aming T a iwa n GTS M G T S M:3083 1,141.1 15.5x 15.8x 26.8x 25.7x 35.0x 21.8x 16.7x
C L IC K E R Inc. Direct Marketing U nited S ta tes OTCB B C LK Z 0.5 0.2x - - - - - -
C ornerW orld C orporation C ontent U nited S ta tes OTCB B CW R L 2.9 1.9x - - - - - -
C yberplex Inc. A dvertis ing C ana da TS X T S X: C X 73.7 0.5x 0.4x 4. 6x 3.7x 7.0x 7.3x 2.8x
DA DA S pA S ocial Networking Italy CM C M:DA 149.0 0.8x 0.8x 6. 2x 5.4x - 14.7x -
DXN Holdings B hd S ocial Networking Mala ys ia K LS E DXN 37.2 0.6x - - - 5.5x - 0.8x
Dibz Interna tiona l, Inc. S NS Apps U nited S ta tes OTCP K DIB Z 0.0 - - - - - - -
DigitalP os t Interactive, Inc. C ontent U nited S ta tes OTCB B DG L P 4.6 5.7x - - - - - -
DigitalT own, Inc. S ocial Networking U nited S ta tes OTCB B DG T W 38.3 - - - - - - -
Dolphin Digital Media, Inc. S ocial Networking U nited S ta tes OTCB B DP DM 17.1 31.0x 1.1x - - - 1.2x -
E olith C o. L td. G aming S outh K orea K OS E A041060 34.0 2.3x - - - - - 3.1x
E xtens ions , Inc. C ontent U nited S ta tes OTCP K E XT I 13.3 - - - - - - -
F luid Mus ic C a nada, Inc. Media U nited S ta tes TS X T S X:F MN 116.0 20.4x 20.4x - - - - 8.6x
F rogs ter Interactive P ictures A G G aming G erma ny XT R A FR G 66.6 6.8x - - - - - 8.2x
G amania Digital E ntertainment C o., Ltd. G aming T a iwa n GTS M 6180 219.8 1.3x - 7. 9x - 23.2x - 2.8x
G ameO n C o Ltd. G aming J apan TS E 3812 67.5 - - - - 6.8x 7.0x 0.8x
G eoS entric Oyj Mobile F inland H LS E G E O1V 52.6 12.0x - - - - - -
G iant Interactive G roup, Inc. G aming C hina NY S E GA 1,592.1 - - - - 1.7x - 0.3x
G igaMedia Ltd. G aming T a iwa n N as da qG S G IG M 219.2 0.8x 0.8x - 3.8x 8.7x 8.6x 1.9x
G ravity C o., Ltd G aming S outh K orea N as da qG M GR VY 41.7 - - - - 0.0x - 0.0x
G ree, Inc. S ocial Networking J apan TS E T S E : 3632 2,303.0 10.5x 6.1x 18.0x 10.9x 39.0x 21.8x 18.5x
G ungH o O nline E nterta inment, Inc. Media J apan OS E 3765 182.3 1.2x 1.0x 5. 3x - 34.2x 12.3x 5.6x
Ha nbitS oft, Inc. G aming S outh K orea K OS E A047080 67.3 1.0x - - - 67.1x - 1.9x
IAC /InterActiveC orp. Media U nited S ta tes N as da qG S IAC I 2,566.8 0.7x 0.7x 11.2x 4.8x 10.9x 28.5x 1.3x
IAS E nergy, Inc. V ideo C ana da OTCB B IAS A.E 7.8 - - - - - - -
is eemedia Inc. C ontent C ana da T S XV IE E 9.4 5.4x - - - - - 18.6x
J umbuck E ntertainment Limited S ocial Networking Aus tra lia AS X AS X:J MB 14.0 0.5x 0.5x 1. 1x 1.2x 4.0x 2.9x 1.3x
K A B Dis tribution Inc. C ontent C ana da TS X T S X:K AB 0.6 - - - - - - 0.0x
K ings oft C o. Ltd. G aming C hina S E HK 3888 818.1 5.6x 4.5x 12.7x 9.4x 16.3x 12.9x 4.5x
Lingo Media C orpora tion L earning C ana da T S XV T S XV : LM 11.0 8.4x - - - - - 19.7x
LiveW orld Inc. S ocial Networking U nited S ta tes OTCP K LV W D 1.0 - - - - 63.3x - 0.4x
LookS ma rt, L td. Direct Marketing U nited S ta tes N as da qG M L OOK 17.8 - - - - - - 0.7x
Magnitude Information S ys tems Inc. S ocial Networking U nited S ta tes OTCB B MA G Y 10.6 - - - - - - -
Mixi, Inc. S ocial Networking J apan TS E 2121 1,206.3 7.7x 6.3x 23.3x 19.6x 60.3x 46.1x 7.7x
Modern T imes G roup Mtg AB Media S weden OM MT G B 2,933.7 1.7x 1.7x 12.3x 12.0x 15.8x 14.2x -
MOK O .mobi Limited S ocial Networking Aus tra lia AS X MK B 11.1 14.6x - - - - - 11.4x
Myriad G roup AG Mobile S witzerla nd SWX MY R N 207.9 3.2x - - - - - -
NE OW IZ G ames C orporation G aming S outh K orea K OS E A095660 746.4 3.6x 2.7x 13.2x 9.3x 38.8x 13.4x 19.6x
NetDra gon W ebS oft, Inc. G aming C hina S E HK 777 301.4 1.7x - 5. 4x - 14.6x - 1.6x
Netea s e.com Inc. G aming C hina N as da qG S NT E S 4,949.3 - - - - 2.7x 14.4x 0.7x
NeuLion Incorporated V ideo C ana da TS X T S X:NL N 85.6 3.0x - - - - - 11.9x
NeXplore C orporation C ontent U nited S ta tes OTCP K NXP C 41.3 26.6x - - - - - -
Ngi G roup Inc. Media J apan TS E 2497 30.8 - - - - - - 0.6x
Northgate T echnologies Limited Direct Marketing India BS E 590057 23.4 0.5x - - - - 1.3x -
O pen T ext C orp. C ollabora tion C ana da N as da qG S OT E X 2,146.4 2.7x 2.4x 10.5x 8.8x 46.8x 12.8x -
O penwave S ys tems Inc. Mobile U nited S ta tes N as da qG S OP W V 197.1 0.5x 0.5x 14.8x 4.6x - 33.2x 2.7x
P erfect W orld C o., Ltd. G aming C hina N as da qG S PWRD 2,195.8 0.5x 2.5x 0. 9x 4.8x 2.7x 12.8x 1.2x
P N I Digital Media Inc. Digita l Ima ging C ana da T S XV T S XV :P N 51.9 2.4x 2.0x 21.6x 6.5x - 13.2x 18.1x
Q uepa s a C orp. S ocial Networking U nited S ta tes OTCB B QP S A 17.7 - - - - - - -
O AO R B C Information S ys tems Media R us s ia R TS R BCI 222.0 0.0x 1.0x 0. 4x 5.7x - 6.5x -
S handa Interactive E nterta inment Ltd. G aming C hina N as da qG S S NDA 3,352.0 - - - - 2.4x 13.9x 0.9x
S hutterfly, Inc. Digita l Ima ging U nited S ta tes N as da qG S S FLY 368.2 1.1x 1.1x 9. 5x 5.5x - 84.9x 2.2x
S K C ommunications C o., Ltd. S earch S outh K orea K OS E A066270 264.6 1.4x - 21.1x - - - -
S N AP Interactive, Inc. Dating U nited S ta tes OTCB B S TVI 2.2 0.2x - 1. 2x - 12.0x - 1.2x
S N M G lobal Holdings Media U nited S ta tes OTCP K S NMN 0.0 1.1x - - - - - -
S ocial Media V entures Inc. S ocial Networking U nited S ta tes OTCP K S MV I 0.0 4.5x - - - - - -
S ocialwis e, Inc. S ocial Networking U nited S ta tes OTCB B S CLW 22.9 - - - - - - -
S ohu.com Inc. G aming C hina N as da qG S S O HU 2,144.4 3.2x 2.7x 7. 3x 6.2x 13.1x 14.8x 3.9x
S park N etworks , Inc. S ocial Networking U nited S ta tes AME X L OV 49.1 1.0x - 4. 5x - 16.3x - 22.2x
S pectrumDN A, Inc. Media U nited S ta tes OTCB B S P XA 6.8 48.7x - - - - - -
T encent Holdings Ltd. P orta l C hina S E HK 700 33,587.4 23.2x 15.3x 45.4x 29.8x 58.4x 39.2x 25.9x
T he P a rent C ompany Media U nited S ta tes OTCP K K IDS .Q 0.2 0.2x 0.2x - 12.8x - - -
T he9 L imited G aming C hina N as da qG S NC T Y 189.6 - - - - 2.2x - 0.1x
T heS treet.com, Inc. Media U nited S ta tes N as da qG M TS CM 71.3 0.1x 0.1x 3. 5x - - - 0.9x
T ree.C om, Inc. P orta l U nited S ta tes N as da qG M TREE 70.3 0.2x 0.2x 4. 6x 5.4x - 81.1x 1.0x
Unis erve C ommunications C orp. S ocial Networking C ana da T S XV T S XV :US S 0.9 0.3x - 37.2x - - - -
United Online Inc. Media U nited S ta tes N as da qG S U NT D 575.2 0.8x 0.8x 3. 9x 3.5x - 5.2x -
UO MO Media, Inc Media C ana da OTCB B UO MO 5.2 7.1x - - - - - -
V a lueC lick Inc. Media U nited S ta tes N as da qG S V CLK 807.8 1.2x 1.2x 5. 0x 4.8x - 15.4x 4.4x
V O IS , Inc. S ocial Networking U nited S ta tes OTCB B V OIS 9.9 - - - - - - 63.2x
W ebzen Inc. G aming S outh K orea N as da qG M W ZE N 32.3 - - - - 0.0x - 0.0x
W izzard S oftware C orporation P odca s ting U nited S ta tes AME X W ZE 24.1 4.9x - - - - - -
W orlds .com Inc. C ontent U nited S ta tes OTCB B W DDD 5.4 - - - - - - -
W ynds torm C orporation C ontent U nited S ta tes OTCP K W Y ND 0.7 - - - - - - -
XIN G AG S ocial Networking G erma ny XT R A O1B C 254.0 3.2x 2.4x 11.7x 6.8x 33.5x 16.3x 7.2x
Y D Online C orp. G aming S outh K orea K OS E A052770 76.9 1.5x 1.1x 6. 8x 3.9x 8.2x 5.8x 2.4x
Y nk K orea Inc. G aming S outh K orea K OS E A023770 16.5 1.3x - 12.5x - - - 0.8x
High 33,587.4 48.7x 20.4x 45.4x 29.8x 67.1x 84.9x 63.2x
Low 0.0 0.0x 0.1x 0. 4x 1.2x 0.0x 1.2x 0.0x
Average 780.8 5.7x 3.3x 11.0x 8.4x 20.8x 19.2x 6.8x
Median 41.3 1.6x 1.1x 8. 6x 5.8x 13.1x 13.4x 2.4x

Figure 20. Valuation Comparison

Source. Capital IQ
 Page 18

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 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 a na da 10 U nited S ta tes 5, 811. 3 S weden 2,974. 2 United S tates 3,887. 3 S weden 304. 6 A us tralia 42. 8%
C hina 10 J a pan 3, 871. 5 J apan 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 aiwan 577. 9 C a na da 1,015. 0 C a na da 200. 0 J apan 24. 2%
J a pa n 6 C anada 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 a iwa n 3 T a iwa n 1, 733. 6 C anada 248. 8 J a pa n 634. 4 S outh K orea 121. 9 Mala ys ia 14. 4%
Aus tralia 2 S outh K orea 1, 527. 4 S outh K orea 190. 9 T a iwa n 385. 8 T a iwa n 59. 8 Italy 13. 1%
G erma ny 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 witzerla nd 1 Hong K ong 294. 6 R us s ia 160. 9 Ita ly 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 inla nd 1 R us s ia 160. 9 U nited S ta tes 152. 9 India 82. 8 G erma ny 12. 5 S witzerla nd 1. 9%
Ita ly 1 S witzerla nd 92. 0 S witzerla nd 92. 0 Ma lays ia 77. 1 Ma lays ia 11. 1 C anada -8. 5%
United K ingdom 1 F inland 65. 9 F inland 65. 9 G erma ny 68. 7 Aus tralia 4. 5 G ermany -9. 1%
India 1 Malays ia 39. 8 Malays ia 39. 8 S witzerla nd 40. 0 S witzerla nd 0. 8 U nited S ta tes -21. 9%
S weden 1 India 31. 0 India 31. 0 Aus tralia 17. 8 Norwa y -1. 1 India -50. 0%
R us s ia 1 Aus tralia 22. 1 Aus tralia 11. 0 F inla nd 5. 5 United K ingdom -2. 7 Norway -50. 6%
Ma lays ia 1 U nited K ingdom 6. 0 U nited K ingdom 6. 0 Norwa y 2. 3 F inla nd -17. 5 U nited K ingdom NA
Norwa y 1 Norway 0. 1 Norway 0. 1 United K ingdom 0. 0 India -41. 4 F inland NA

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%

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 18 S E HK 31, 520. 4 S E HK 10,506. 8 OM 1,982. 6 Na s daqG S 1, 796. 0 NY S E 62. 5%

Na s daqG S 14 Nas da qG S 24, 385. 7 OM 2,974. 2 S E HK 540. 0 S E HK 767. 5 AS X 42. 8%
OT C P K 11 TS E 3, 569. 2 NY S E 1,750. 4 Na s daqG S 498. 6 OM 304. 6 S E HK 40. 6%
K OS E 6 OM 2, 974. 2 Nas da qG S 1,741. 8 CM 242. 6 TS E 160. 2 GTS M 37. 1%
TS E 5 NY S E 1, 750. 4 GTS M 715. 0 NY S E 198. 5 NY S E 124. 1 Nas da qG S 30. 4%
Na s daqG M 5 K OS E 1, 437. 0 TSE 713. 8 RTS 156. 2 K OS E 103. 2 TSE 24. 6%
TS X 4 GTS M 1, 430. 0 OS E 302. 3 OS E 116. 1 GTS M 59. 8 OS E 22. 2%
T S XV 4 XT R A 317. 0 K OS E 239. 5 K OS E 106. 0 CM 31. 9 OM 15. 4%
S E HK 3 OS E 302. 3 CM 165. 4 TS E 103. 7 OS E 25. 8 K LS E 14. 4%
AME X 2 Nas da qG M 279. 7 R TS 160. 9 GTS M 101. 1 RTS 20. 4 CM 13. 1%
AS X 2 TS X 243. 6 XT R A 158. 5 BSE 82. 8 Na s daqG M 15. 6 R TS 13. 1%
XT R A 2 OT C B B 230. 9 SWX 92. 0 Na s daqG M 82. 4 XT R A 12. 5 K OS E 9. 6%
GTS M 2 CM 165. 4 HLS E 65. 9 K LS E 77. 1 K LS E 11. 1 Nas da qG M 7. 7%
SWX 1 R TS 160. 9 TSX 60. 9 TS X 46. 4 AME X 6. 2 T S XV 5. 6%
HL S E 1 SWX 92. 0 Nas da qG M 55. 9 SWX 40. 0 AS X 4. 5 S WX 1. 9%
CM 1 T S XV 76. 6 K LS E 39. 8 XT R A 34. 3 SWX 0. 8 XT R A -9. 1%
BS E 1 AME X 68. 5 AME X 34. 2 AME X 27. 9 OT C NO -1. 1 A ME X -31. 8%
NY S E 1 HLS E 65. 9 BS E 31. 0 OT C P K 16. 5 AIM -2. 7 TSX -34. 7%
OS E 1 OT C P K 65. 8 T S XV 19. 1 T S XV 12. 0 TS X -4. 3 OTCB B -38. 8%
AIM 1 K LS E 39. 8 OT C B B 12. 8 AS X 8. 9 T S XV -4. 6 OTCP K -41. 5%
OM 1 BS E 31. 0 AS X 11. 0 HL S E 5. 5 HL S E -17. 5 BSE -50. 0%
RTS 1 AS X 22. 1 AIM 6. 0 OT C B B 2. 3 OT C P K -34. 1 O T C NO -50. 6%
K LS E 1 AIM 6. 0 OT C P K 6. 0 OT C NO 2. 3 BSE -41. 4 A IM NA
OT C NO 1 OT C NO 0. 1 OT C NO 0. 1 AIM 0. 0 OT C B B -62. 4 HLS E NA

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%

Figure 22. Comparison by Exchange

Source. Capital IQ
 Page 19

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

F in. Amount (Million) Type of financing
Month C ompany Name C ountry Angel/S eed Debt financing S eries A S eries B S eries C S eries D S eries E G rand Total
S ep-09 Twitter 100.0 100.0
E ns equence US A 20.0 20.0
L ivebookings UK 16. 0 16.0
Mzinga US A 10. 0 10.0
InXpo US A 9.0 9. 0
J obvite US A 8.3 8. 3
R iot Games US A 8.0 8. 0
NextB io US A 8. 0 8. 0
Imeem US A 6.0 6. 0
Vuclip US A 6.0 6. 0
Y uMe US A 5. 0 5. 0
B ooyah US A 5.0 5. 0
NeoE dge US A 4. 0 4. 0
Alliance Health Networks US A 3. 3 3. 3
Unis fair US A 3.1 3. 1
C onduit L abs US A 3.0 3. 0
Moc apay US A 3. 0 3. 0
F wix US A 2.8 2. 8
Vantrix C ana da 2. 6 2. 6
Mas hL ogic US A 2.5 2. 5
G reys tripe US A 2. 0 2. 0
L oomia US A 1. 5 1. 5
F ourS quare US A 1.4 1. 4
E duF ire US A 1.3 1. 3
F luther US A 0.6 0. 6
Trans G aming Inc. C ana da 0. 5 0. 5
OnL ive US A
S ep-09 Total 0.6 2.0 16.9 52.3 27.9 23.1 110.0 232.8

Oct-09 DailyMotion F rance 25. 3 25.3

P opC ap Games US A 22.5 22.5
E ngine Yard US A 19. 0 19.0
HubS pot US A 16. 0 16.0
J ive S oftware US A 12. 0 12.0
S pigit US A 10. 0 10.0
Ooyala US A 10. 0 10.0
S c anS cout US A 8.5 8. 5
B ox.net US A 7. 1 7. 1
R eality Mobile US A 6.5 6. 5
W atercooler US A 5.5 5. 5
Vdopia US A 4.7 4. 7
S ometric s US A 4.0 4. 0
Amie S treet US A 3.9 3. 9
ViVu US A 3.0 3. 0
F izzbac k UK 2.6 2. 6
Technorati US A 2.0 2. 0
Onehub US A 1.3 1. 3
DataS ync US A 1.2 1. 2
DailyB ooth US A 1.0 1. 0
Hot P otato US A 1.0 1. 0
L inkedex UK 1.0 1. 0
S tatus Net C a na da 0.9 0. 9
IngB oo US A 0.8 0. 8
C hango C a na da 0.7 0. 7
C redit K arma US A 0.5 0. 5
L is tia US A 0.4 0. 4
Oct-09 Total 4.5 40.9 56.5 67.4 2.0 171.3

Nov-09 R oc kY ou US A 50.0 50.0

P laydom US A 43.0 43.0
S ezmi US A 25. 0 25.0
Millennial Media US A 16. 0 16.0
Zynga US A 15. 0 15.0
E vernote US A 10. 0 10.0
C ubeTree US A 8.0 8. 0
Alic e.c om US A 6.0 6. 0
E ventbrite US A 6. 0 6. 0
P lac ecas t US A 5.0 5. 0
AppNexus US A 5. 0 5. 0
Altruik US A 4.7 4. 7
C redit K arma US A 2.5 2. 5
B lekko US A 2.5 2. 5
P layfire UK 2.1 2. 1
S impleG eo US A 1.5 1. 5
Adfonic UK 0.6 0. 6
S c oopler US A 0.5 0. 5
Nov-09 Total 2.6 52.3 29.0 67.0 52.5 203.4

G rand Total 7.7 2.0 110.1 137.7 162.3 77.6 110.0 607.5

Figure 23. Financing, Last Three Months

Source. Company reports
 Page 20

C ompany Des criptions - C urrent Month C apital Market Activity

C ompany HQ Webs ite Des c ription
Adfonic UK www. adfonic. com Adfonic Ltd. operates a s a W eb-bas ed ma rketpla ce for a dvertis ing on mobile phones . T he company provides tools tha t ena ble a dvertis ers to
build, execute, monitor, a nd control campa igns ; and publis hers to monetize their mobile s ites and a pplications . It s erves a dvertis ers a nd
agencies , a s well a s publis hers a nd developers in Aus tra lia , B runei, C a nada , C os ta R ica , India, the U nited Ara b E mirates , a nd the U nited
K ingdom. T he compa ny wa s founded in 2008 and is hea dqua rtered in London, the United K ingdom. It ha s opera tions in F rance, S pa in, a nd
the U nited S tates .
Alic e.c om United S ta tes www. alice. com Alice. com, Inc. owns a nd opera tes an online reta il pla tform tha t offers hous ehold products . T he company was founded in 2008 a nd is ba s ed
in Middleton, W is cons in.
Altruik United S ta tes www. altuik.com Altruik, Inc. provides s ea rch engine optimiza tion s olutions for optimizing the W ebs ite content to ens ure vis ibility a nd page ra nking. T he
compa ny wa s founded in 2006 and is bas ed in New Y ork, New Y ork.
AppNexus United S ta tes www. appnexus . com AppNexus , Inc. develops a nd ma na ges online ad excha nge in the U nited S ta tes a nd the U nited K ingdom. It provides on-dema nd production
infras tructure. It als o offers AppNexus cloud, a n ecos ys tem in which enterpris es colla borate a nd s ha re indus try-s pecific informa tion without
the latency, ba ndwidth, and s ecurity is s ues of the public Internet. T he compa ny wa s founded in 2007 and is ba s ed in New Y ork, New Y ork.
B izo United S ta tes www. biz o. com B izo, Inc. provides a n a dvertis ing network and a bizographic ta rgeting pla tform to collect information from compa ny da ta bas es , bus ines s
regis trations , a nd online profiles to provide mecha nis ms for bus ines s traffic mea s urement a nd ta rgeting. It offers B 2B marketers with acces s
to ta rgetable a udience of bus ines s people on market through its pla tform a nd network of publis her s ites a cros s the W eb. T he compa ny’s
platform unders ta nds bizographics of its audience, s uch a s indus try, functiona l a rea , s eniority, educa tion, a nd loca tion. B izo, Inc. wa s
incorporated in 2008 a nd is ba s ed in S an F ra ncis co, C a lifornia.
B lekko United S ta tes www. blekko. com B lekko, Inc. provides internet s earch s olutions . B lekko, Inc. wa s founded in 2007 and is ba s ed in United S ta tes .
C redit K arma United S ta tes www. creditka rma .com C redit K a rma is the cons umer’s advocate for demys tifying credit a nd ha s a ra nge of tools a nd informa tion res ources to help them monitor
and ma nage the credit a s pect of their fina ncial health. C redit K arma’s goal is to help cons umers eas ily diges t the contents of their credit
report a nd unders tand what makes up their credit s core. C redit K a rma works with a ra nge of pa rtners , including mortga ge lenders , credit
card providers , ba nks , a nd wireles s providers .
C ubeTree United S ta tes www. cubetree. com C ubeT ree, Inc. provides s ocial networking s oftwa re. It offers C ubeT ree AP I, a R E S T W eb s ervices AP I, which a llows a pplica tions to query
and ma nipulate the res ources provided by the C ubeT ree W eb applica tion. C ubeT ree provides its s oftware a s s ervice. T he compa ny wa s
founded in 2008 a nd is ba s ed in R edwood C ity, C a lifornia.
E ventbrite United S ta tes www. eventbrite. com Mollygua rd C orpora tion, doing bus ines s a s E ventbrite, provides online regis tra tion s olutions to event orga nizers . It offers online event
mana gement and ticketing s ervices . T he compa ny a ls o enga ges in publis hing bra nded event pa ges ; promoting events online; a nd s elling
event tickets through the pers onalized event regis tration W eb page. In a ddition, it offers a n online events ma rketpla ce that ena bles
individua ls , bus ines s es , and orga niza tions of various s izes ma nage, promote, a nd s ell their events . T he compa ny s erves event organizers ,
as well a s va rious non-profits , univers ities , libraries , and orga niza tions . Mollyguard C orporation wa s founded in 2006 and is bas ed in S a n
F ra ncis co, C a lifornia.
E vernote United S ta tes www. evernote. com E vernote C orporation offers handwriting recognition a nd digita l ink s oftwa re a nd technologies for us ers , s ys tem integra tors , va lue added
res ellers , a nd origina l equipment ma nufacturers in C alifornia . T he company wa s formerly known as E vernote, LL C a nd cha nged its name to
E vernote C orporation in S eptember 2004, as a res ult of the merger between
P en&Internet, Inc. a nd E vernote, L LC . E vernote C orpora tion is ba s ed in Mountain V iew, C alifornia.
Imeem United S ta tes www. imeem. com Imeem, Inc. opera tes as an online community for mus icia ns , directors , photogra phers , and groups . It ena bles us ers to crea te a udio, video,
and photo pla ylis ts ; s ha re their fa vorites ; dis cover new content; track their films ; crea te a nd view pla ylis ts of their favorite s hots ; tra ck their
photos ; s ha re a lbums with their friends ; hold group dis cus s ions ; cha nge their profile info; uploa d new photo a lbums ; pos t new videos , or
mus ic; and write blogs , or comments . T he compa ny wa s founded in 2004 is ba s ed in S an F ra ncis co, C a lifornia. As of November 18, 2009,
Imeem, Inc. opera tes as a s ubs idia ry of MyS pace, Inc.
J oos t United S ta tes www. joos t.com J oos t is a p2p on dema nd video pla yer tha t offers profes s iona l (lega l) progra mming much like on your televis ion, but whenever you want.
T he s ervice is free, however, there are video a dvertis ements inters pers ed between and during programs as well as s ma ll type or ima ge a ds
on the s ides of your s creen. C urrently J oos t ha s content dea ls with C NN, the NHL a nd S ony as well a s their fina nciers C B S and V ia com
(MT V , C omedy C entra l etc). T hey ha ve a ls o recently developed a new W idget AP I open to third pa rties to make their own J oos t widgets .
K u6 C hina www. ku6.com K u6.com offers video s ha ring s ervices . K u6. com wa s founded in 2006 and is bas ed in C hina.
Millennial Media United S ta tes www. millennia lmedia. com Millennia l Media , Inc. opera tes as a mobile media networks company. Its products and s olutions include MB ra nd, a mobile a dvertis ing
network; Decktra de, a performa nce-ba s ed mobile a dvertis ing network, which ena bles us ers to build, a djus t, a na lyz e, and ma nage their
campa igns on cos t-per-click ba s is ; Motion, a media mobile a dvertis ing; a nd Decktra de network that ena bles us ers to target by content,
geogra phy, ca rrier, device capa bility, a nd hands et, for va rious mobile products or s ervices . T he company wa s founded in 2006 a nd is bas ed
in B a ltimore, Ma ryla nd. It ha s offices in New Y ork, New Y ork; C hica go, Illinois ; and L os Angeles , C a lifornia .
Motley Fool United S ta tes www. fool.com T he Motley F ool, Inc. operates a s a multimedia fina ncia l-s ervices compa ny. T he company provides financia l s olutions for various inves tors . It
rea ches people ea ch month through its W ebs ite, books , news pa per column, televis ion appearances , and s ubs cription news letter s ervices .
T T he Motley F ool wa s founded in 1994 and is bas ed in Alexa ndria, V irginia.
Nival Network R us s ia www. nival.com Nival Network develops , publis hes , a nd operates free to pla y online ga mes . It als o opera tes an online ga ming a nd s ocia l networking portal.
T he compa ny wa s founded in 2008 and is ba s ed in Mos cow, R us s ia n F ederation. Nival Network opera tes as a s ubs idia ry of Niva l G roup.
P hoenix New Media C hina NA P hoenix New Media Ltd. operates Internet portals which provide news a nd enterta inment content. P hoenix New Media L td. wa s founded in
2005 a nd is ba s ed in C hina . P hoenix New Media L td. opera tes a s a s ubs idiary of P hoenix S a tellite T elevis ion Holdings L td.
P lac ec as t United S ta tes www. 1020. com 1020, Inc. develops online a dvertis ing s olutions . It develops a nd owns P lacecas t Media, an online advertis ing s olution to ta rget highly s ought-
after audiences us ing location-ba s ed informa tion acros s the W eb, mobile, a nd W i-F i. Its pla tform a ls o ma nages a publis her's W eb and
mobile inventory, as well a s s erves targeted a ds a nd mes s a ges into outgoing emails . T he compa ny s erves compa nies in ma rketing,
bra nding, a dvertis ing, a nd P R indus tries . 1020, Inc. wa s founded in 2005 a nd is ba s ed in S an F ra ncis co, C a lifornia with a n a dditional office in
P laydom United S ta tes www. pla ydom.com New
P Y ork,Inc.
laydom, Newoffers
Y ork.s ocia l ga mes through the Internet. T he company delivers ga mes on F a cebook, MyS pa ce, hi5, T agged, a nd iP hone.
P laydom, Inc. wa s founded in 2008 a nd is ba s ed in Mountain V iew, C a lifornia.
P layfire UK www. pla yfire. com P layfire is a s ocial networking a pplication des igned for video ga mers . It a llows us ers to create profiles , tra ck fa vorite ga mes , be notified of
new developments . P la yfire was founded in 2007 by K iera n O ’Neill, S eb Ha yes & B en P hillips .
P layFis h UK www. pla yfis h.com P layfis h L imited, a s ocial ga mes compa ny, develops a nd publis hes video ga mes for s ocia l networks . It creates games for people to pla y
together us ing s ocia l networks , s uch a s F acebook, MyS pa ce, B ebo, Y a hoo! , iP hone, and iP od touch. T he company als o offers advertis ing
opportunities , including in-ga me video ads and s pons ors hips packa ges . P la yfis h L imited was founded in 2007 a nd is hea dquartered in
London, the United K ingdom with a dditiona l offices in B eijing, C hina ; S a n F rancis co, C a lifornia ; a nd T roms o, Norwa y. As of November 9,
2009, P layfis h Limited opera tes a s a s ubs idia ry of E A Intera ctive. As of November 9, 2009, P la yfis h L imited opera tes a s a s ubs idiary of
United S ta tes www. pros per. com E ros
P lectronic
per is Arts Nederland B . V .lending marketpla ce tha t a ttempts to ma ke cons umer lending more fina ncia lly a nd s ocia lly rewa rding. At
a people-to-people
P ros per.c om
P ros per, people lis t a nd bid on loa ns us ing P ros per’s online a uction pla tform. P ros pective lenders s et their minimum interes t ra te and bid in
increments of $50 to $25, 000 on loa n lis tings they s elect. P ros per generates revenue by collecting a one-time 1% or 2% fee on funded loa ns
from borrowers , a nd a s s es s es a 0. 5% or 1. 0% a nnua l loa n s ervicing fee to lenders .
Qunar.com C hina www. qunar.com Q una r. com, Inc. operates a multi-la nguage price compa ris on s ea rch engine. T he company’s s ea rch engine s earches C hines e-la ngua ge
tra vel W eb s ites to provide rea l-time pricing informa tion a nd other des criptive deta ils from a irlines and hotels s ervicing C hina ; a nd a llows
cons umers to compa re prices for air tickets , hotels , car renta ls , a nd tour packa ges . It s erves online travel indus try. T he compa ny wa s
founded in 2005 a nd is ba s ed in B eijing, C hina .
R ockYou United S ta tes www. rockyou. com Netpickle maker of R ockY ou (origina lly na med R ockMyS pa ce) creates a nd dis tributes s elf-expres s ion widgets . T he widgets ca n be us ed to
enhance the look a nd feel of blogs , pers ona l webs ites a nd pers onal pa ges on s ocia l networks s uch as F a cebook, MyS pace and B ebo.
R ockY ou ha s over 10 million regis tered us ers and gets over 150 million widget views from over 200 countries per da y.
S coopler United S ta tes www. s coopler.com S coopler, Inc. , a real-time s earch engine, a ggrega tes a nd orga nizes content being s hared on the internet a s it ha ppens . It offers s ea rch
options on entertainment, technology, s ports , world a nd bus ines s , s cience, ga ming, politics , a nd lifes tyle topics . T he company wa s
incorporated in 2008 a nd is ba s ed in S an F ra ncis co, C a lifornia.
S ezmi United S ta tes www. s ezmi. com S ezmi C orporation ma rkets a nd dis tributes digita l broadca s t a nd broa dba nd s olutions to the cons umer s ector. T he compa ny provides digita l
media receivers a nd home entertainment content s ervices . It offers equipment and s olutions to integra te cable network progra mming, on
dema nd movies , Internet ba s ed videos , a nd live broa dca s ting s ervices . S ezmi C orporation wa s founded in 2003 as B uilding B , Inc. and
cha nged its na me to S ezmi C orpora tion in Ma y 2008. T he compa ny is bas ed in B elmont, C a lifornia with a dditional offices in S a nta Monica ,
C a lifornia a nd F ort La uderda le, F lorida.
S impleG eo United S ta tes www. s implegeo. com S impleG eo, Inc. offers s ervices s uch a s G eographic Information S ys tems (G IS ) a nd L oca tions B a s ed S ervices (LB S ) tha t feeds
geogra phica l informa tion to mobile a pplica tions . S impleG eo, Inc. was formerly known a s C ra s hC orp. S impleG eo, Inc. wa s founded in 2009
and is ba s ed in B oulder, C olorado.
S oc ialMedia United S ta tes www. s ocia lmedia. com S ocia l Media Networks , Inc. opera tes as a s ocial media a dvertis ing network. T he compa ny’s S ocia lmedia advertis ing pla tform enables
advertis ers to rea ch va rious us ers through its network; a nd developers of s ocia l media applica tions to monetiz e their tra ffic from a dvertis ing.
T he compa ny wa s founded in 2007 and is ba s ed in P alo Alto, C alifornia with additiona l offices in P a lo Alto a nd S an F ra ncis co, C alifornia.
wooga G erma ny www. wooga . net wooga G mbH develops a nd markets ca s ual games for s ocial networks . T he company was founded in 2009 a nd is ba s ed in B erlin, G ermany.
Zynga United S ta tes www. zynga . com Zynga , Inc. operates a s a n online s ocial ga ming compa ny. It offers ca s ino games , word ga mes , boa rd ga mes , role pla ying ga mes , and pa rty
ga mes , a s well as cas ua l online ga mes . T he company wa s founded in 2007 a nd is bas ed in S a n F ra ncis co, C a lifornia .

Figure 24. Company Descriptions

Source. Company reports, Capital IQ, Crunchbase
 Page 21

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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