SOFTWARE & SERVICES 14 APRIL 2009

DAVID SHORE, CFA, MBA 416.860.6784

WEB 2.O WEEKLY david.shore@researchcapital.com
Arun Thomas (Associate) 416.860.7666

COLLECTIVE MEDIA LEADS PICK-UP IN FINANCING

ACT I VIT Y P E RK S U P I N S E CO ND WE E K OF A P RIL
Month-to-date, April finished with nine financings totalling $66.3 million, a run-rate that could potentially make it a
better month for capital market activity than March. A total of three deals greater than $10 million each helped the
overall statistics. Although April activity has picked up from a total dollars raised perspective, the number of
transactions month-to-date (nine) is well below numbers for March (21) and February (25).

Financing Activity Last Three Months

200.0 8.0

180.0
7.0

160.0

6.0

140.0

5.0
120.0
(US$m)

(US$m)

100.0 4.0

80.0
3.0

60.0

2.0

40.0

1.0
20.0

0.0 0.0
Feb-09 Mar-09 Apr-09

Total Average

Capital Market Activity: The second week of April saw seven companies raising money, with Collective Media raising
$20 million (behind Twitter which raised $35 million in February). The month-to-date total of total capital raised
stands at $66 million. The Rubicon Project (ad network sector) and Cellufun (gaming sector) followed Collective
Media, raising $13 million and $10 million, respectively.

Price Performance: Gaming company Hanbitsoft Inc. (A047080-KOSE) was the top price performer for the week,
returning 45.6%, closely followed by NEOW IZ Games Corp. (A095660-KOSE). Sitesearch Corp. (STPC-OTCBB)
returned the least at -30.0%. Of the 48 companies (with stock price greater than $1), sixteen companies on our list
had price performance greater than 10%. Eight companies returned more than 20%.

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

THE WEB 2.0 UNIVERSE

Ninety-tw o public Web 2.0 companies identified: Our W eb 2.0 universe contains 92 companies, with a combined market
cap of $40 billion (Figure 1). The average market cap for the group is ~$437 million (but a median of only $46 million),
with average trailing revenue of $144 million (median $52 million). The companies are also generally profitable, with a
median EBITDA margin of 17.6%. On a valuation basis, the overall average is 4.7x trailing revenue (median 1.3x) and 8.9x
trailing EBITDA (median 6.7x). Twelve of the companies have more than 500 employees.
C omparable C o mpany A nalys is > W eb 2.0
Trading Current U S D Market U S D LT M To tal US D L TM T otal E BITDA TE V/LT M T E V/LT M
C om pany Nam e L TM as o f T ic ker E xc h ange Currenc y H Q P ric e C ap ($m) R ev ($m) E B ITDA ($m) % R evenue E B IT DA E mployees
Acce le rize N ew Me dia, Inc. 1 2/31 /200 8 AC LZ OT C B B US D U nited S ta tes 0 .38 1 0.4 3.8 (4 .8) NM 3.9 x - 11
Actoz S of t C o., L td. 1 2/31 /200 8 A0 527 90 K OS E KR W S outh K orea 14 800 .00 9 4.7 70. 2 1 4.0 20 .0% 1.0 x 4.8x NA
AQ Inte ractive , Inc. 1 2/31 /200 8 38 38 TSE JPY J apan 43 200 .00 2 3.4 60. 1 4 .8 8 .0% - - NA
As s ocia ted Media H oldings Inc. 6 /30 /200 7 AS MH OT C P K US D U nited S ta tes 0 .00 0 .1 0.1 (2 .3) NM 8.4 x - 3
B igstring Corp. 1 2/31 /200 8 BS GC OT C B B US D U nited S ta tes 0 .01 0 .7 0.1 (2 .1) NM 23.6 x - 4
B e tawave Co rpora tion 1 2/31 /200 8 B W AV OT C B B US D U nited S ta tes 0 .13 3 .8 7.7 (1 1. 8) NM - - 45
B e yond Commerce, Inc. 1 2/31 /200 8 B Y OC OT C B B US D U nited S ta tes 1 .28 5 2.9 1.8 (8 .6) NM 30.8 x - NA
B right T hings plc 9 /30 /200 8 AIM:B G T AIM GBP U nited K ingdom 0 .01 4 .3 0.2 (1 .7) NM 17.2 x - 3 ,12 5
B roa dW ebAs ia Inc. 9 /30 /200 8 BW BA OT C P K US D U nited S ta tes 0 .45 3 8.2 0.0 (4 .6) NM - - 37
C D C C orp. 9 /30 /200 8 C HIN .A N as da qG S US D H ong K ong 1 .26 13 5.9 428 .1 1 8.8 4 .4% 0.4 x 1 0.2 x NA
C hina G ate wa y C orpora tion 9 /30 /200 8 C GW Y OT C B B US D U nited S ta tes 0 .00 0 .0 6.7 (6 .6) -9 8.9% 7.0 x - NA
C hine s e G amer International 1 2/31 /200 8 G T S M:308 3 GTSM TWD T aiwan 190 . 00 47 9.6 46. 3 2 3.4 50 .5% 1.1 x 1 3.2 x NA
C ornerW orld C orporation 1 /31 /200 9 C WR L OT C B B US D U nited S ta tes 0 .12 7 .7 1.3 NM NM 0.6 x 3.8x 574
C yberplex Inc. 1 2/31 /200 8 T S X:C X TSX C AD C ana da 1 .22 5 3.5 46. 8 3 .9 8 .4% 0.5 x 3.8x NA
D AD A S pA 9 /30 /200 8 C M:D A CM EUR Ita ly 4 .29 9 2.6 226 .0 3 6.1 16 .0% - - NA
D XN Holdings B hd 1 1/30 /200 8 D XN KL SE MY R Ma la ys ia 0 .30 1 8.9 76. 5 1 0.2 13 .3% 5.0 x - 11
D ibz Inte rnational, Inc. NA D IB Z OT C P K US D U nited S ta tes 0 .00 0 .0 NA NM NM - - 3
D igitalP ost Inte ra ctive , Inc. 9 /30 /200 8 D G LP OT C B B US D U nited S ta tes 0 .02 1 .1 0.4 (3 .3) NM - - 6
D igitalT own, Inc. 1 1/30 /200 8 DGT W OT C B B US D U nited S ta tes 2 .50 6 7.9 NM (2 .5) NM 1.3 x - NA
D olphin D igital Me dia, Inc. NA DPDM OT C B B US D U nited S ta tes 0 .57 2 7.7 NA NM NM - - 2
E olith C o. L td. 1 2/31 /200 7 A0 410 60 K OS E KR W S outh K orea 700 . 00 2 4.6 18. 8 (0 .1) -0 .3% - - 22
E xte ns ions , Inc. 9 /30 /200 8 E XT I OT C P K US D U nited S ta tes 0 .15 1 4.2 NM NM NM - - 29
F inancia l Med ia G roup, Inc. 1 1/30 /200 8 F NG P OT C B B US D U nited S ta tes 0 .01 0 .5 6.8 1 .2 18 .3% 4.4 x - NA
F luid Mus ic Ca nada, Inc. 9 /30 /200 8 T S X:F MN TSX C AD U nited S ta tes 0 .33 1 4.2 4.2 (8 .6) NM 1.2 x 8.4x NA
F rogs te r Inter active P icture s AG 6 /30 /200 8 F RG XT R A EUR G ermany 7 .72 2 4.2 5.4 (3 .2) -6 0.6% 0.5 x 1.8x NA
G a ma nia D igital E ntertainment C o., L td. 1 2/31 /200 8 61 80 GTSM TWD T aiwan 34 .40 15 5.1 111 .9 1 6.2 14 .5% 4.8 x - NA
G a me On C o L td. 1 2/31 /200 8 38 12 TSE JPY J apan 93 000 .00 8 9.6 74. 4 1 9.2 25 .9% - - NA
G e oS e ntric O yj 1 2/31 /200 8 G E O1 V H LS E EUR F inland 0 .03 3 5.8 5.8 (1 3. 1) NM 1.4 x 5.6x NA
G iant Intera ctive G roup, Inc. 1 2/31 /200 8 GA NYS E US D C hina 7 .57 1,7 10.8 233 .3 14 4.4 61 .9% - - 636
G iga Media Ltd. 1 2/31 /200 8 G IG M N as da qG S US D T aiwan 6 .18 33 3.6 190 .4 4 6.0 24 .2% 41.2 x - NA
G ravity C o., L td 9 /30 /200 8 GR VY N as da qG M US D S outh K orea 0 .94 2 6.1 36. 8 7 .1 19 .2% 1.1 x 6.3x NA
G ree, Inc. 6 /30 /200 8 T S E : 363 2 TSE JPY J apan 5 700 .00 1,2 67.3 29. 3 1 0.5 36 .0% 1.3 x - NA
G ungH o O nline E ntertainment, Inc. 1 2/31 /200 8 37 65 OS E JPY J apan 127 500 . 00 14 5.6 112 .1 2 0.0 17 .8% 0.4 x 9.1x 3 ,20 0
H anbitS of t, Inc. 1 2/31 /200 8 A0 470 80 K OS E KR W S outh K orea 5 030 .00 8 2.9 52. 3 (1 4. 7) -2 8.2% - - NA
IAC /InterActiveC orp. 1 2/31 /200 8 IAC I N as da qG S US D U nited S ta tes 16 .60 2,3 39.7 1 ,44 5.1 6 4.6 4 .5% - - NA
IAS E nergy, Inc. 1 /31 /200 9 IAS C.A OT C B B US D C ana da 0 .07 4 .9 0.0 (0 .8) NM 2.5 x - NA
IdeaE dge, Inc. 1 2/31 /200 8 OT C B B :ID AE OT C B B US D U nited S ta tes 0 .39 1 6.6 0.0 (4 .6) NM 1.0 x 2.6x 72
is ee media Inc. 1 2/31 /200 8 IE E T S XV C AD C ana da 0 .11 4 .6 1.2 (4 .9) NM 2.9 x - NA
J umbuck E ntertainment P ty Ltd. 1 2/31 /200 8 AS X:J MB AS X AU D Aus tra lia 0 .48 1 7.3 13. 0 4 .9 37 .2% 1.1 x 1 1.1 x NA
J umpT V Inc. 1 2/31 /200 8 T S X:J T V TSX C AD C ana da 0 .58 5 4.0 13. 4 (8 .4) -6 2.6% 3.0 x 7.9x 2 ,27 1
K a boos e Inc. 1 2/31 /200 8 T S X:K AB TSX C AD C ana da 0 .58 6 6.4 67. 0 6 .7 9 .9% 2.7 x - NA
K ings oft Co. Ltd. 1 2/31 /200 8 38 88 S E HK HKD C hina 3 .24 44 8.9 120 .1 4 6.3 38 .5% 0.1 x - NA
Lingo Media Corporation 9 /30 /200 8 T S XV : LM T S XV C AD C ana da 0 .80 8 .4 3.3 (1 .4) -4 2.5% - - 90
Live World Inc. 1 2/31 /200 8 LV WD OT C P K US D U nited S ta tes 0 .08 2 .5 11. 8 (0 .5) -4 .3% - - 13
LookS mart, Ltd. 1 2/31 /200 8 LOOK N as da qG M US D U nited S ta tes 1 .19 2 0.3 65. 0 (2 .0) -3 .1% 4.2 x 1 0.9 x NA
Magnitude Information S ys tems Inc. 9 /30 /200 8 MA G Y OT C B B US D U nited S ta tes 0 .01 4 .4 0.1 (3 .2) NM 1.1 x 6.7x NA
Mixi, Inc. 1 2/31 /200 8 21 21 TSE JPY J apan 385 000 . 00 58 9.1 116 .9 4 4.5 38 .0% - - 3
Mode rn Times G roup Mtg AB 1 2/31 /200 8 MT G B OM S EK S weden 155 . 50 1,2 51.5 1 ,60 8.2 25 9.4 16 .1% 4.3 x - NA
Moggle , Inc 1 2/31 /200 8 MMOG OT C B B US D U nited S ta tes 2 .30 8 3.5 NM (1 .1) NM 3.7 x 1 3.6 x NA
MOK O.mobi L imited 1 2/31 /200 8 MK B AS X AU D Aus tra lia 0 .09 5 .5 1.1 (2 .2) NM 1.6 x 3.4x NA
N E OW IZ G ames C orpora tion 1 2/31 /200 7 A0 956 60 K OS E KR W S outh K orea 70 000 .00 50 6.3 135 .6 3 6.4 26 .9% - - NA
N etD ragon W ebS oft, Inc. 1 2/31 /200 8 77 7 S E HK HKD C hina 4 .16 28 3.7 87. 2 3 9.9 45 .7% - - 19
N ete as e.com I nc. 1 2/31 /200 8 NT E S N as da qG S US D C hina 29 .37 3,6 14.0 451 .2 29 3.4 65 .0% - - NA
N eXplore Co rpora tion 9 /30 /200 7 N XP C OT C P K US D U nited S ta tes 0 .90 5 0.2 NM (4 .9) NM 0.2 x 1.3x 286
N gi G roup Inc. 1 2/31 /200 8 24 97 TSE JPY J apan 27 400 .00 3 3.7 98. 0 3 0.2 30 .8% 2.5 x 1 0.0 x 3 ,40 0
N orthgate Te chnologies L imited 1 2/31 /200 8 59 005 7 BS E INR India 43 .25 3 0.3 135 .4 2 3.8 17 .6% 0.1 x - 627
Open T e xt Co rp. 1 2/31 /200 8 OT E X N as da qG S US D C ana da 35 .11 1,8 22.2 769 .3 19 5.0 25 .3% - - NA
Openwave S ys tems Inc. 1 2/31 /200 8 OP W V N as da qG S US D U nited S ta tes 1 .34 11 1.6 199 .6 (1 0. 2) -5 .1% 2.9 x - NA
P e rf ect W orld C o., Ltd. 1 2/31 /200 8 PW R D N as da qG S US D C hina 16 .99 89 6.3 210 .2 11 3.8 54 .1% - - 74
P hotoChannel N etwork s Inc. 1 2/31 /200 8 T S XV : P N T S XV C AD C ana da 1 .70 4 7.6 16. 3 (0 .8) -4 .9% 0.0 x 0.1x NA
Quepa s a C or p. 1 2/31 /200 8 QP S A N as da qC M US D U nited S ta tes 0 .92 1 1.7 0.1 (1 1. 4) NM 0.2 x 0.5x NA
OA O R B C Information S ys tems 1 2/31 /200 7 R BC I R TS US D R us s ia 0 .53 7 2.8 141 .9 1 8.5 13 .1% 0.9 x 6.4x 514
S handa Inter active E ntertainme nt L td. 1 2/31 /200 8 S NDA N as da qG S US D C hina 52 .18 3,6 20.4 522 .1 23 9.9 46 .0% 2.0 x 2 1.5 x NA
S hutte rf ly, Inc. 1 2/31 /200 8 S F LY N as da qG S US D U nited S ta tes 10 .75 27 0.5 213 .5 2 8.4 13 .3% 2.0 x 6.4x 11
S K C ommun ications Co., Ltd. 1 2/31 /200 7 A0 662 70 K OS E KR W S outh K orea 10 200 .00 31 5.4 155 .9 1 4.7 9 .4% - - 33
S N AP Inte ra ctive , Inc. 1 2/31 /200 8 S T VI OT C B B US D U nited S ta tes 0 .70 7 .6 3.0 0 .9 31 .4% 0.1 x - NA
S N M G lobal H oldings 9 /30 /200 8 S N MN OT C P K US D U nited S ta tes 0 .00 0 .0 2.0 (0 .7) -3 4.8% 3.7 x 8.8x 3 ,19 7
S ocia l Media V e nures , Inc. 1 2/31 /200 8 S MV I OT C P K US D U nited S ta tes 0 .88 0 .0 0.1 (0 .1) -6 0.5% - - 15
S ohu. com Inc. 1 2/31 /200 8 S OH U N as da qG S US D C hina 50 .00 1,9 05.8 429 .1 18 0.5 42 .1% 0.8 x 3.8x 183
S ite s earch C orporation 1 /31 /200 9 S T PC OT C B B US D U nited S ta tes 3 .50 2 8.2 NM (1 .1) NM - - 7
S park N etworks , Inc. 1 2/31 /200 8 LOV AME X US D U nited S ta tes 2 .25 4 6.2 57. 3 1 2.3 21 .5% 14.9 x 3 0.4 x 6 ,19 4
S pectrumDN A, Inc. 1 2/31 /200 8 S P XA OT C B B US D U nited S ta tes 0 .15 7 .3 0.1 (2 .5) NM 0.2 x - 347
T encent Hold ings L td. 1 2/31 /200 8 70 0 S E HK HKD C hina 61 .80 14,3 60. 1 1 ,04 6.6 51 1.9 48 .9% - - NA
T he P arent C ompany 8/2/2008 K ID S .Q OT C P K US D U nited S ta tes 0 .02 0 .4 112 .0 (1 3. 5) -1 2.0% - - 310
T he 9 L imited 1 2/31 /200 8 N CT Y N as da qG S US D C hina 13 .25 35 5.3 249 .9 8 4.2 33 .7% 4.6 x - 16
T he S treet.com, Inc. 1 2/31 /200 8 TSCM N as da qG M US D U nited S ta tes 2 .12 6 4.7 71. 9 7 .0 9 .7% 0.3 x - 700
T otal S port O nline A S 3 /31 /200 6 T OS O OT C NO NOK N orwa y 0 .04 0 .2 2.0 (1 .0) -5 0.6% 0.1 x 2 9.5 x NA
T ree.C om, In c. 1 2/31 /200 8 TR EE N as da qG M US D U nited S ta tes 5 .50 5 4.9 228 .6 (2 3. 9) -1 0.4% 1.1 x 4.9x 1 ,46 9
U nis erve C ommunications Corp. 1 1/30 /200 8 T S XV : US S T S XV C AD C ana da 0 .04 0 .8 24. 4 0 .1 0 .4% 15.4 x - NA
U nited Online Inc. 1 2/31 /200 8 U NT D N as da qG S US D U nited S ta tes 5 .36 44 0.3 669 .4 15 3.9 23 .0% 1.2 x 6.6x 1 ,18 9
U OMO Media , Inc 1 /31 /200 9 U OMO OT C B B US D C ana da 0 .11 9 .4 0.6 (0 .5) -7 8.2% - - 4
V a lueC lick Inc. 1 2/31 /200 8 V C LK N as da qG S US D U nited S ta tes 10 .11 87 7.1 625 .8 11 3.6 18 .2% - - NA
V O IS , Inc. 1 2/31 /200 8 V OIS OT C B B US D U nited S ta tes 0 .30 2 .5 0.0 (1 .3) NM 5.4 x - 110
W ebze n Inc. 1 2/31 /200 8 W ZE N N as da qG M US D S outh K orea 2 .89 3 4.3 21. 4 (4 .2) -1 9.8% - - 14
W izza rd S of twa re Corpora tion 1 2/31 /200 8 W ZE AME X US D U nited S ta tes 0 .69 3 2.5 6.1 (6 .0) -9 8.2% - - 1
W oozyF ly, Inc. 9 /30 /200 8 W ZY F OT C B B US D U nited S ta tes 0 .15 2 .6 0.0 NM NM - - NA
W orlds .com Inc. 9 /30 /200 8 W DD D OT C B B US D U nited S ta tes 0 .17 8 .9 0.1 NM NM 2.9 x 9.1x 174
W ynds torm C orporation NA W YND OT C B B US D U nited S ta tes 0 .17 3 .1 NA NM NM 2.2 x 9.9x NA
XIN G AG 1 2/31 /200 8 O1B C XT R A EUR G ermany 28 .28 19 3.0 46. 5 1 4.9 32 .0% 0.7 x - NA
Y e dangOnline Corp. 1 2/31 /200 7 A0 527 70 K OS E KR W S outh K orea 9 810 .00 11 5.4 51. 6 1 1.5 22 .4% 0.6 x - NA
Y nk K orea Inc. 1 2/31 /200 7 A0 237 70 K OS E KR W S outh K orea 5 500 .00 1 0.1 14. 7 (1 .1) -7 .6% - - -
ZipLocal Inc. 1 2/31 /200 8 T S XV : ZIP T S XV C AD C ana da 0 .01 0 .3 2.7 (2 .8) NM 41.2 x 3 0.4 x 2 0,22 2
H igh 14,3 60. 1 1 ,608 .2 51 1. 9 65 .0% 41.2 x 3 0.4 x 20 ,22 2
Low 0 .0 0.0 -23.9 -9 8.9% - - 0
A vera ge 437.0 144.4 32.0 6.9% 4 .7x 8.9x 1,071
Median 4 6.2 51. 9 1 .2 17 .6% 1.3 x 6.7x 142
 Page 3

Figure 1. Web 2.0 Universe Summary

Source. Capital IQ
 Page 4

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 )
April run-rate building up: The first two weeks of April has had nine financings, with the month-to-date total capital raise
of $66.3 million. The month of April (so far) has registered three deals greater than or equal to $10 million and one deal
greater than $15 million. The month of March registered 22 financings (total $130.7 million, average $5.9 million)
compared to 25 financings announced in February, totalling $185.5 million, or $7.4 million on average (Figure 2). The
average value for February was above the $6.8 million average for January, with four financings over $15 million in
February (Twitter, Synthasite, Tremor Media, and Offerpal Media) vs. no deals over $15 million in January.

Financing Activity Last Three Months

200.0 8.0

180.0
7.0

160.0

6.0

140.0

5.0
120.0
(US$m)

(US$m)
100.0 4.0

80.0
3.0

60.0

2.0

40.0

1.0
20.0

0.0 0.0
Feb-09 Mar-09 Apr-09

Total Average

Figure 2. Financings, Last Three Months

Source. Company reports

Collective Media largest deal in April: Two weeks into April and Collective Media tops the list with a $20 million raise,
followed by The Rubicon Project and Cellufun with $13 million and $10 million, respectively (Figure 3). For additional
details, see Figures 23 and 24 (at end of note).
 (US$m)

0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
Twitter
Collective Media
Synthasite

Source. Company reports

Tremor Media
Vidyo
Offerpal Media
Imagini
The Rubicon Project
Buzznet
Emergent Game
Outbrain
LendingClub

Figure 3. Capital Market Activity, Last Three Months

SendMe Inc.
Miva
Auditude

companies raising $54.4 million.

Cellufun
Glam Media
Visible Measures
SuperSecret
Tvtrip
GoViral
ScanScout
Tongxue
Oodle
Greystripe
Wamba
DoubleTwist
OMGPOP
Socialtext
TextDigger
OneSpot
Apture
Simulmedia
Mixpo
FetchDog
Virtual Fairground
Tynt
AnySource Media
Pixazza
TubeMogul
Financing Summary - Last Three Months

7 Billion People
FamilyLink.com
WhistleBox
Hunch
Outright
Mendeley
Sports Composite DE
Bit.ly
Tvinci
Socialcast
Filtrbox
Scan & Target
MMO Life
AdultSpace
Myngle
Cake Financial
33Across
fav.or.it
Three Melons
Apr-09
Mar-09
Feb-09
Page 5

eight companies raising over $63.4 million (Figure 4). Social networking companies have the next highest totals, with 11
Video continues to be the most active sector: Activity over the last three months was busiest in the video sector, with
 Page 6

Capital Market Activity by Sector - Last Three Months

70.0

60.0

50.0

40.0
(US$m)

63.4
30.0
54.4

20.0 41.9 41.4

37.0
30.6
22.5
10.0 20.0
16.0 15.0
12.0 12.0
9.0
5.5 4.3 4.1 4.0 3.9 3.1 2.0 2.0 1.4 1.3 1.3
0.0

Comment/Reputation
Gaming

Visual Commerce
Wiki

Travel
Microblog

Media

Mobile

Publishing

Online Learning
Financial Services
Lending

Mobile Ad

Search

Infrastructure
Social Networks

Virtual Goods

SAS
Video

Aggregation

Virtual World

Crowdsourced
Ad Network

Analytics

Content
# companies

8 11 5 7 2 4 4 1 3 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

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

Source. Company reports

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 )
Price Performance: Our W eb 2.0 index (market-cap weighted) underperformed the NASDAQ composite index from mid
2008 until recently when it has moved higher than the NASDAQ index (Figure 5).

Web 2.0 Index Price Performance

140

120

100

80

60

40

20

0
4/14/2008

4/28/2008

5/12/2008

5/26/2008

6/9/2008

6/23/2008

7/7/2008

7/21/2008

8/4/2008

8/18/2008

9/1/2008

9/15/2008

9/29/2008

10/13/2008

10/27/2008

11/10/2008

11/24/2008

12/8/2008

12/22/2008

1/5/2009

1/19/2009

2/2/2009

2/16/2009

3/2/2009

3/16/2009

3/30/2009

4/13/2009

^COMP - Share Pricing Index: Web 2.0 X (Market Cap)

 Page 7

Figure 5. Web 2.0 Price Performance

Source. Capital IQ

A positive week: Most of the companies in our universe had positive stock price performances over the past week (for
stocks with prices greater than $1) (Figure 6), with 34 companies showing positive returns on the week. HanbitSoft Inc.
(A047080-KOSE) led the group with a 45.6% return over the past week. Sitesearch Corporation (STPC-OTCBB) had the
worst return, dropping 30.0% in the week.

1 Week P rice P erformance

HanbitS of t, Inc. 45. 6%
NEOWIZ Games Corporation 42.6%
Cy berplex Inc. 35.6%
Webz en Inc. 28. 4%
Eolith Co. Ltd. 26. 1%
S handa Interactive Entertainment Ltd. 22. 2%
Y nk K orea Inc. 20.6%
Ngi Group Inc. 20.1%
A ctoz S of t Co., Ltd. 15. 6%
Moggle, Inc 15.0%
Y edangOnline Corp. 13. 9%
S K Communications Co., Ltd. 10.9%
CDC Corp. 10. 5%
G igaMedia Ltd. 10. 5%
Frogs ter Interactive Pictures A G 10.3%
S hutterf ly , Inc. 10.3%
V alueClick Inc. 9. 9%
Northgate Technologies Limited 8. 8%
S ohu. com Inc. 8. 2%
Openw ave S y s tems Inc. 8. 1%
Chines e Gamer International 8. 0%
Tree. Com, Inc. 7. 4%
TheS treet.com, Inc. 6. 5%
PhotoChannel Netw orks Inc. 6. 2%
United Online Inc. 5. 7%
Perfect World Co., Ltd. 5.2%
G ree, Inc. 5.2%
Open Tex t Corp. 4.4%
Giant Interactive G roup, Inc. 4.3%
IA C/InterA ctiveCorp. 2.9%
Neteas e. com Inc. 2.7%
Tencent Holdings Ltd. 2. 5%
GameOn Co Ltd. 2. 3%
Gamania Digital Entertainment Co., Ltd. 1.8%
S park Netw orks , Inc. 0. 0%
A Q Interactive, Inc. 0. 0%
B ey ond Commerce, Inc. -0.8%
XING A G -0.8%
LookS mart, Ltd. -0.8%
Modern Times Group Mtg A B -1.0%
K ings of t Co. Ltd. -1.5%
Mix i, Inc. -1.5%
GungHo Online Entertainment, Inc. -1.5%
NetDragon WebS of t, Inc. -3.3%
The9 Limited -6.4%
DA DA S pA -8. 7%
DigitalTow n, Inc. -16. 7%
S ites earch Corporation -30. 0%
-40. 0% -30.0% -20.0% -10. 0% 0.0% 10. 0% 20.0% 30.0% 40. 0% 50. 0%

Figure 6. 1-Week Price Performance

Source. Capital IQ
 Page 8

INDUSTRY NEWS (PARTNERSHIPS, FINANCIAL RESULTS, NEW PRODUCTS)

K ey Developments
C ompany Headline Notes
A T&T , Inc . (NYS E : T); Open Text Corp. O pen T ext C orp. (N asdaqG S : O T E X ) a cquired V izible O pen T ext C orp. (Na s daqG S : O T E X ) ac quired V izible Corporation from AT & T , Inc. (NY S E : T) a nd other sha reholders on April 8, 2009. O pen
(Nas daqG S : OT E X); Viz ible C orporation Corpora tion from AT &T , Inc . (N Y S E : T) and other T ext will a dd the V i zible tea m to the company 's Digital M edia G roup. V izible emp loyees will remain in the T oronto area a t O pen T ext's
sha reholders . R ic hmond H ill, O nta rio offic e.
O pen T ext C orp. (Na s daqG S : O T E X ) completed the a cquisition of V izible Corporation from AT & T , Inc. (N Y S E : T ) a nd other sha reholders on
April 8, 2009.
B eyond Commerc e, Inc . B eyond Commerce I nc. Appoi nts R ona ld L . Loveles s to B eyond Commerce Inc . a nnounc ed the appointment of R onald L . L oveles s, who owns and manages I ntegrity M a rketing and Cons ulting in
(OT CB B: B Y OC) the B oa rd of Direc tors R ogers , AR . , to the B oard of D irectors . He is a retired exec utive of W al-M art S tores Inc. H e s erved four years in the U S A ir F orce Intelligenc e
S ervice and bega n his ca reer with W al-M a rt in 1964.
G igaMedia L td. (Nas daqG S : G IG M) G igaMedia L td. to L aunch W a rhammer O nline Clos ed G igaMedia L td. ann ounced that it will be la unching W a rhammer O nli ne: Age of R ec koning clos ed beta in T a iwa n. T he ga me wa s originally
B eta in Ta iwan launched in N orth Americ a, E urope, a nd A ustra lia in S eptember 2008 a nd R uss ia in F ebrua ry 2009.
J u mpTV Inc . (TS X : J TV) University of N ebrask a A thletics Teams Up with J umpTV J umpTV I nc. and U nivers ity of N ebra s ka a nnounced the debut of a grand sla m n ew video service dedicated to Nebras ka H usk ers ba s eba ll.
Inc . for E x clus ive Live O nline V ideo S ervic e B eginning immediately this online s ervic e will a ir all home baseball ga mes free to fa ns through the res t of this s ea son. T he onl ine des tination
showca s es a sleek look and feel and delive rs the most c omplete a nd comprehensiv e v ideo covera ge of N ebra sk a baseball. H us kers .com is
the single des tina tion for Nebras ka baseba l l fans to wa tc h live games with a ll the bes t content a nd features in one centra l l ocation. T he
University of Nebras k a is the firs t J umpT V C ollegiate P artner to use NeuL ion technology . Nebra s ka, in conjunction with N euL ion, will offer
exc lusiv e free live video strea ms of a ll home ba seba ll ga mes through H usk erV isi on, the athletic depa rtment's televis ion production group.

J u mpTV Inc . (TS X : J TV)
Indy C ar S eries and JumpT V I nc. Announces New J umpTV I nc. annou nced the launc h of a new online video portal dedicated to the Indy Ca r S eries . T he Indy ca r.c om Media C enter gives auto
P a rtners hip racing fa ns a cros s the globe a n opportunity to tune into their favorite multimedi a c ontent and on-demand programs online. P owered by
lea ding s ports tec hnology compa ny N euLion, the I ndyc ar.com M edia C enter is an a ll-in-one online media s olution for both the Indy Ca r S eries
a nd F irestone Indy L ights. T his is the firs t and only dedicated onli ne network that gives Indy Car S eries fans worldwide one central l ocation to
a cc ess all things entertainment. The Media C enter u ses the la tes t NeuL ion technology a nd serv ice to deliver popula r Up to S peed segments,
race highlights , vinta ge races , 2008 a rchiv es , podca s ting and all other v ideo ass ets . T he M edia C enter will a ls o provide live online event
strea mi ng of I ndyC a r S eries a nd F irestone Indy L ights prac tic e a nd qua lifying ses si ons. T he I ndyC ar. com M edia C enter inc ludes a n
integrated s earch feature that allows fans to view archived video by s ea rc hing by driver, tra ck , video title, etc. I t a ls o includes a built-i n option
a llowing fa ns to easily s hare a udio and video clips on their pers ona l F ac ebook, M yS p a ce, twitter, d igg, or more than 20 other top soc ial networ

L iveWorld Inc . (OT CPK :L VWD ) L iveW orld Inc. R eports P rel imina ry E arnings R es ults for L iveW orld Inc. reported preliminary earnings res ults for the firs t quarter of 2009. F or the quarter, the company wa s cas h flow pos itive by
the F irst Q ua rter of 2009 a pproxima tely $65, 000 for the firs t quarter of 2009. This is an improvement of a pprox ima tely $162, 000 compared to the firs t qua rter of 2008
a nd a pprox imately $97, 000 when c ompared to the fourth quarter of 2008. T he revenue for the fi rs t quarter was approximately $2.5 million.
T his repres ented a decreas e of 15% compared to $3. 0 million in revenue for the fi rs t qua rter of 2008 and a 16% decrease compared to the
$3.0 mi llion in revenue for the fourth quarter of 2008.
Modern Times G ro up Mtg AB (OM: MTG Modern Times G roup MT G AB M ulls an E quity B uy back Modern Times G roup MT G AB expec ts to initia te a s ha re repurc ha s e progra m to be approv ed a t its Annua l G eneral Meeting to be held on
B) Ma y 11, 2009. U nder the proposal, M odern T imes will repurchase its o wn C las s C sha res . T he repurc hase ma y only be e ffected through a
public offer directed to al l holders of C la s s C shares and s hall comprise all outs ta nding C la ss C s hares . T he purcha s e may be effected at a
purchas e pric e corres ponding to not less tha n S E K 5 a nd not more than S E K 5. 1. T he total price will not exc eed S E K 1.88 milli on. P ayment
for the C la s s C s hares s hall be ma de in ca s h. T he purpos e of the repurchas e is to ens ure the deliv ery of Cla s s B s hares under the P lan. The
Company would a ls o s eek approva l to repurc ha se C la s s A and/or Cl a ss B s ha res that the Company's holding does not a t a ny time ex ceed
10% of the tota l number of shares in the C ompany. T he repurchas e of s ha res s hall take pla ce on the N asda q O MX S toc kholm a nd may only
occ ur at a price within the s ha re price interva l regis tered at that time, where s hare pric e in terv al means the differenc e between the highes t
buying price and l owest selling pric e. The purpose of the authoriza tion is to give the B oard of Di rec tors increas ed flex ibility to continuously dec

Modern Times G ro up Mtg AB (OM: MTG Modern Times G roup Mtg A B P ropos es Amendment to
B) its Artic les of As so ciation; P ropos es Div idend
Modern Times G ro up Mtg AB (OM: MTG Upda te to Modern T imes G roup Mtg AB ’ s E quity B uybac k As of D ecember 31, 2008, Modern Times G roup Mtg A B ha s ma de no repurchases under the plan.
B)
Open T ext C orp. (Nas daqG S : OT E X) L ock heed Ma rtin Aeronautics E xtends Us e of O pen
T ex t's D igital As set M a na gement S olution
Modern Times G roup Mtg AB announced at A nnual G enera l Meeting to be held on M a y 11, 2009, to propos e a mendment of the A rtic les of
Ass ocia tion.
T he company propos ed a dividend of S E K 5. 00 per share. T he record date is propos ed to be M ay 14, 2009.
O pen T ext C orp. announced L oc kheed Ma rtin Aeronautic s J oint-S erv ice T echnical D a ta (J T D ) I ntegrated P roduct T ea m (I P T), based in F ort
W orth, T exas , extended its us e of O pen T ext's Digital As s et Management (D AM) solution to ma na ge graphic s and rich media content for F -
35 Lightning I I T echnic al Da ta . T he F -35 L ightning I I, or J oint S trike F ighter (J S F ), is a DoD multi -s ervice/mul ti-na tiona l effort to create a next-
generation stea lth fighter plane. T he company behind the des ign of the J T D I P T s ys tem, and the J oint-S ervice Technica l D ata IP T team
selec ted O pen Tex t to complement a n exis ting X ML -ba s ed content management s ys tem (C M S ). W ith its J av a E nterpris e E dition (JE E )
a rchitecture and open interfac e, the DAM s oftware from O pen T ext is seamles sly integra ted with a complex array of unique F -35 P rogra m
T echnical D a ta development a nd support authoring work flows.

Open T ext C orp. (Nas daqG S : OT E X)
P erfec t World C o. , Ltd.
(Nas daqG S : PW R D)
Anthony G allo to J oin O pen T ext C orp. as V ice P res ident
of Digi ta l Media E xperiences
P erfect W orld L aunches Hot D a nce P arty 3.0 - B a by P l a n
E xpa ns ion P ack
O pen T ext C orp. announced tha t it ha s ac quired V izible Corpora tion. Anthony G a llo, former F ounder and C hief T echnology O fficer of V izi ble,
who will join O pen T ex t a s V ic e P res ident of D igital M edia E x periences .
P erfect W orld Co. L td. announced it launc hed 'H ot Dance P arty 3. 0-B aby P la n' e xpa nsion pac k. 'H ot Da nc e P a rty ' was P erfec t W orld's firs t
3D online ca s ual ga me. T he game ha s been well-received by online game play ers s ince its la unch beca us e of its excellent graphic des ign,
innovative ga me s ys tems a nd continued introduction of new fea tures . I n 'Hot Dance P arty 3. 0-B aby P la n,' a 'B a by R ea ring S y stem' is a dded
to the exis ting c la ss ic pla y mode, enhancing the fun of players ' game life. P la y ers who ha ve paired up through the game's 'P a rtnership
S ys tem' ca n be bes towed a baby by an angel a nd enjoy the fun of rais ing the baby in game together.

T enc en t Ho ldings Ltd. (S E H K: 700)
T enc ent H oldings Limited Mulls a s ha re buy back
O n April 7, 2009, T encent Holdings L imited a nnounc ed that it’s B oard of Directors would seek a pprov al in the c ompany’s Annua l G eneral
Meeting on May 13, 2009 , to commence a share buybac k progra m. Under the program, the C ompany will repurchas e up to 10% of the
a ggrega te of th e nominal amount of the iss ued s hare capita l of the Compa ny a s a t the date of pass ing this res olution and the s a id approv al
sha ll be limited ac cordingly. T he s hare buyba ck progra m s hall ex pire at the conclusio n of the nex t annual genera l meeting of the C ompany,
the expiration of the period within which the next a nnua l general meeting of the C ompa ny is required by the Articles of As s ociation of the
Company or any a p plicable la w to be h eld and the date on which the authority set out i n this resolu tion is revok ed or v aried by a n ordina ry
resolution of the sha reholders in genera l meeting.

Figure 7. Key Developments

Source. Capital IQ
 Page 9

VALUATION
MMOG companies lead market-cap charts: Nine companies in our Web 2.0 universe top US$1 billion in market
capitalization (Figure 8). Sixty-five of the 90 companies have market caps under US$100 million, with 28 under $10
million. Online gaming companies dominate the top of the list with four of the top five by market cap.

Market C ap (US D m)
Tencent Holdings L td.
S handa Interac tive Entertainment L td. 3620. 4
Neteas e.c om Inc . 3614.0
IA C/InterA c tiveCorp. 2339.7
S ohu.c om Inc . 1905.8
Open Tex t Corp. 1822.2
Giant Interactiv e Group, Inc . 1710.8
Gree, Inc . 1267.3
Modern Times G roup Mtg A B 1251.5
Perf ec t World Co., L td. 896.3
V alueClick Inc . 877.1
Mix i, Inc . 589.1
NEOWIZ Games Corporation 506.3
Chines e Gamer International 479. 6
K ings of t Co. L td. 448.9
United Online Inc . 440.3
The9 L imited 355. 3
GigaMedia L td. 333.6
S K Communic ations Co., L td. 315.4
NetDragon WebS of t, Inc . 283.7
S hutterf ly, Inc . 270.5
XING A G 193. 0
Gamania Digital Entertainment Co. , 155.1
GungHo Online Entertainment, Inc . 145. 6
CDC Corp. 135.9
Y edangOnline Corp. 115. 4
Openw ave S ys tems Inc . 111. 6
A c toz S of t Co., L td. 94.7
DA DA S pA 92.6
GameOn Co L td. 89.6
Moggle, Inc 83.5
HanbitS of t, Inc . 82.9
OA O R B C Inf ormation S y s tems 72. 8
DigitalTow n, Inc . 67.9
K aboos e Inc . 66.4
TheS treet.com, Inc . 64.7
Tree.Com, Inc. 54.9
J umpTV Inc . 54.0
Cyberplex Inc. 53.5
B eyond Commerc e, Inc . 52.9
NeXplore Corporation 50.2
PhotoChannel Netw orks Inc . 47.6
S park Netw orks , Inc . 46.2
B roadWebA s ia Inc . 38. 2
G eoS entric Oy j 35.8
Webz en Inc . 34.3
Ngi Group Inc . 33.7
Wiz z ard S of tw are Corporation 32.5
Northgate Tec hnologies L imited 30.3
S ites earc h Corporation 28. 2
Dolphin Digital Media, Inc . 27. 7
G ravity Co., L td 26. 1
Eolith Co. L td. 24. 6
Frogs ter Interactiv e Pictures A G 24. 2
A Q Interactiv e, Inc . 23.4
L ookS mart, L td. 20.3
DXN Holdings B hd 18.9
J umbuck Entertainment Pty L td. 17.3
IdeaEdge, Inc . 16.6
Fluid Mus ic Canada, Inc . 14.2
Ex tens ions , Inc . 14.2
Quepas a Corp. 11.7
A c celeriz e New Media, Inc . 10.4
Y nk K orea Inc . 10.1
UOMO Media, Inc 9. 4
Worlds .c om Inc . 8. 9
L ingo Media Corporation 8. 4
CornerW orld Corporation 7. 7
S NA P Interactiv e, Inc . 7. 6
S pectrumDNA , Inc . 7. 3
MOK O. mobi L imited 5. 5
IA S Energy, Inc . 4. 9
is eemedia Inc . 4. 6
Magnitude Inf ormation S ys tems Inc. 4. 4
B right Things plc 4. 3
B etaw av e Corporation 3. 8
Wy nds torm Corporation 3. 1
Wooz yFly, Inc . 2. 6
V OIS , Inc . 2. 5
L iveWorld Inc . 2. 5
DigitalPos t Interactiv e, Inc . 1. 1
Unis erve Communic ations Corp. 0. 8
B igs tring Corp. 0. 7
Financial Media Group, Inc . 0. 5
The Parent Company 0. 4
ZipLocal Inc . 0. 3
Total S port Online A S 0. 2
A s s oc iated Media Holdings Inc . 0. 1
China G atew ay Corporation 0. 0
S ocial Media V enures , Inc . 0. 0
Dibz International, Inc . 0. 0
S NM Global Holdings 0. 0
0 500 1,000 1,500 2,000 2,500 3, 000 3, 500 4,000

Figure 8. Market Cap Ranking

Source. Capital IQ
 Page 10

TEV/Revenue (LTM) averages 4.2x: The overall average TEV/Revenue (LTM) multiple for our group is 4.2x – up from
3.6x last week (Figure 9). However, this is skewed by Gree (3633-TSE) at 41.2x and Beyond Commerce Inc. (BYOC-
OTCBB) at 30.8x. The median is only 1.3x. 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)

45. 0
41.2
40. 0

35. 0
30. 8
30. 0
23.6
25. 0

20. 0 17.2
15.4
14.9
15. 0

10. 0 8.4 9.2

7. 0
A verage, 4.2 4.64.85.0 5.4
3. 73.7 3.94.24.34.4
5. 0 2.52.52.7 2.92.92.9 3.0
0.40.40.50.50.60.60.7 0.80.91. 01.01.11.11.11.11.1 1.21.21.31. 31.41.6 2.02.02.2
0.00.00.00.10.10.10.10. 20.20.20.3
0. 0

N E O WIZ G ames C orporation

MO K O .mobi L imited

UO MO Media, Inc
J umbuck E nterta inment P ty L td.

G ungH o O nline E ntertainment, Inc.

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

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
T ree.C om, Inc.

C DC C orp.
G a meO n C o Ltd.

S K C ommunica tions C o., Ltd.

DigitalP os t Intera ctive, Inc.

B ey ond C ommerc e, 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

Lingo Media C orporation

C ornerWorld C orporation
S handa Interac tive E ntertainment Ltd.

United O nline Inc .

S NAP Intera ctive, Inc.

O pen T ex t C orp.

P hotoC ha nnel Network s Inc.

J umpT V Inc .
C hina G atewa y C orporation

IAC /InterAc tiveC orp.

S pa rk N etwork s , Inc .

C y berplex Inc .

V alueC lic k Inc .

E olith C o. Ltd.
G igaMedia Ltd.
NetDra gon WebS oft, Inc .

is eemedia Inc .

XIN G AG

S ohu.com Inc .

Mix i, Inc .

F rogs ter Intera ctiv e P ic tures AG

As s ociated Media Holdings Inc .

T encent Holdings Ltd.

G ree, Inc .
B right T hings plc
S ocial Media V enures , Inc .
L iveWorld Inc .

O penwave S y s tems Inc .

ZipLoca l Inc .

Y nk K orea Inc .

K aboos e Inc .

H anbitS oft, Inc .

Y edangO nline C orp.

B igs tring C orp.

T otal S port O nline AS
S hutterfly , Inc .

K ings oft C o. Ltd.

Acceleriz e New Media , Inc .

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 (22), trading at an average multiple of 5.7x (down from 8.6x last week). On a geographic basis, the
United States has the most companies (41), trading at an average of 4.8x revenue (up from 3.4x last week) (Figure 11).
Eleven of the companies are Canadian (average 8.5x revenue).

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

20.0 20.0
17.2 17.2
18.0 18.0
16.0 14.9 16.0
14.0 14.9
14.0 15.7
12.0
12.0
(x)

10.0
6.9
(x)

8.0 10.0
5.7 5.0 8.5
6.0 8.0
4.3 4.1 3.0 5.0
4.0 1.9 1.9 1.7 1.4 4.8
1.3 0.9 0.6 0.4 0.4 6.0 4.3
2.0 0.2 0.1 4.0 1.9 1.4
0.0 1.4
2.0 1.3 0.9 0.6 0.5
OTCPK
OTCBB

GTSM

NasdaqGM

NasdaqCM
TSE

KOSE
NasdaqGS

OM

HLSE

RTS

OSE
AMEX

KLSE

TSX

XTRA

BSE
AIM

0.4 0.1
TSXV

ASX

0.0
Germany
Kingdom

Canada

Malaysia
United

China

Japan

Finland

Russia

Hong

India
South
Korea

Kong
States
Taiwan

Australia
Sweden
United

# Companies 1 5 2 13 22 1 1 9 2 5 4 5 1 2 1 2 1 7 1 1
# Companies 1 3 11 1 41 1 9 6 1 2 1 2 9 1 1

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

Source. Capital IQ

TEV/EBITDA (LTM) averages 8.8x: The average multiple for the 30 companies with positive EBITDA (and multiples under
100x) is 8.8x LTM EBITDA (slightly down from 9.1x last week), led by Tencent Holdings Ltd.’s (700-SEHK) 30.4x multiple
 Page 11

(Figure 12). Seventeen of the companies have EBITDA multiples under 7x. The median multiple is 6.7x (vs. 8.0x last
week).

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

35.0
30. 4
29. 5
30.0

25.0
21.5

20.0 18.3

15.0 13.2 13.6

10.9 11. 1
9.9 10.0 10.2
A v erage, 8.8 8. 8 9.1 9.1
10.0 7.9 8.4
6.3 6. 4 6.4 6.6 6.7
5.6
4.8 4.9
5. 0 3.4 3.8 3.8 3. 8
2.6
1. 3 1.8
0.1 0.5
0. 0

NE O WIZ G ames C orporation

J umbuc k E ntertainment P ty Ltd.

G ungHo O nline E ntertainment, Inc.

G amania Digital E ntertainment C o., Ltd.

C hines e G amer International

Unis erv e C ommunic ations C orp.

O AO R B C Information S y s tems

Northgate T ec hnologies L imited

DX N Holdings B hd
G ameO n C o L td.

C DC C orp.

S K C ommunications C o. , L td.
Modern T imes G roup Mtg AB
S handa Interac tiv e E ntertainment L td.

U nited O nline Inc .

S NAP Interac tive, Inc .

O pen T ex t C orp.
NetDragon WebS oft, Inc.

S park Network s , Inc.

G igaMedia Ltd.

V alueC lic k Inc.

S ohu.c om Inc.

IAC /InterAc tiveC orp.

Mix i, Inc.

C y berplex Inc.

T encent Holdings Ltd.

XING AG

Y edangO nline C orp.

K aboos e 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 (22), trading at an average multiple of 7.6x. On a geographic basis, the
United States has the most companies (41), trading at an average of 8.3x EBITDA (Figure 14). Eleven of the companies
are Canadian (average 10.5x EBITDA).

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

35.0 30.4 35.0
30.0 30.0 29.5
25.0 29.5
25.0
20.0
(x)

15.2 20.0
15.0 13.2 13.2
(x)

10.0 9.7 9.1 15.0 12.6

10.0 7.6 7.4 7.2 10.5 10.2 9.6
6.7 6.4 5.6 5.1 8.3
5.0 2.4 10.0 7.2 6.4
1.8 0.5
5.6
0.0 5.0 3.7
OTCNO

OTCPK
OTCBB
GTSM

NasdaqGM

NasdaqCM
TSE

NasdaqGS

OSE

RTS

HLSE

KOSE
AMEX

TSX

XTRA
TSXV

ASX

0.0
0.0 1.8
Germany
China

Canada

Hong

Japan

United

Russia

Finland

India
Kong

South
Korea
States
Taiwan

Australia
Norway

# Companies 2 1 5 2 5 13 1 22 5 2 4 1 1 9 7 2 1
# Companies 1 3 9 11 1 6 41 2 1 1 9 2 1

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

Source. Capital IQ

P/E (LTM) averages 15.8x: The average multiple for the 32 companies with positive earnings (and multiples under 100x)
is 15.8x LTM EPS (slightly down from 16x last week), led by TheStreet.com’s (TSCM-NASDAQ) 68.3x multiple (Figure 15).
Fourteen of the companies have P/E multiples under 10x. The median is just 10.9x.
 Page 12

P /E LT M (x)

80. 0

68. 3
70. 0
60. 8
60. 0

50. 0
40. 8
40. 0 37. 2

30. 0 27. 6 28. 9

24. 9
20. 1 20. 1
20. 0 17. 4
A verage, 15.8 15. 7
11. 7 12. 3 13. 1
9. 3 9. 4 9. 9 10. 1 10. 6 11.1 11. 2
10. 0 7. 7
5. 4
2. 4 3. 0 3. 3 3. 6 3. 7
1. 1 1. 6 1. 7 2. 0
0. 0

NE O WIZ G ames C orporation

J umbuc k E ntertainment P ty L td.

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

C hines e G amer International

Northgate T echnologies L imited

DXN Holdings B hd
G iant Interac tive G roup, Inc .

G ameO n C o L td.
Modern T imes G roup Mtg AB
T he9 L imited

Neteas e. com Inc .

S handa Interac tive E ntertainment L td.

S NAP Interactive, Inc .

Ngi G roup Inc .

O pen T ex t C orp.

T heS treet. com, Inc .

Worlds . com Inc .

NetDragon WebS oft, Inc .

G igaMedia L td.

S park Network s , Inc .

C yberplex Inc .

S ohu. com Inc .

IAC /InterAc tiveC orp.

Mix i, Inc .

T encent Holdings L td.

XING AG
P erfect World C o. , L td.

Y edangO nline C orp.

K ings oft C o. Ltd.

S hutterfly , Inc .
DADA S pA

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 (22), trading at an average multiple of 12.9x. On a geographic basis, the United States has
the most companies (41), trading at an average of 17.7x earnings (Figure 17). Eleven of the companies are Canadian
(average 21.3x EPS).

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

80.0 70.0
68.3 60.8
70.0
60.0
60.0
60.8
50.0 50.0
(x)

40.0 28.9 27.5 40.0

22.0
(x)

30.0 19.5 17.4

30.0 21.3 18.8 17.7
20.0 12.9 11.8 11.2 10.6
9.4 9.3 11.2 10.6
10.0 8.2 20.0
9.4 9.3
0.0 7.4 6.0
10.0
OTCPK

OTCBB
NasdaqGM

GTSM
RTS

TSE

OSE

HLSE

NasdaqGS
AMEX

TSX

XTRA
TSXV

ASX

0.0
0.0
Germany
Russia

Canada

Japan

United

Finland

China

South
Korea
States

Taiwan

Australia

Norway

# Companies 5 1 5 9 2 5 1 22 4 2 1 2 2 13

# Companies 1 11 6 41 3 1 2 2 9 9 1

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

Source. Capital IQ
 Page 13

UPCOMING EVENTS
E arnings Calendar
C ompany D ate & T ime Qu arter Conf Call D etails
S hutterfly , Inc . (N asdaqG S : S F L Y ) W ednes day, April 29, 2009 5:00 P M (E D T) Q 1 2009 877-591-4956
I AC /I nterAc tiveC orp. (Nas daqG S :I AC I) W ednes day, April 29, 2009 11:00 AM (E D T) Q 1 2009 NA
T ree. C om, Inc . (N asdaqG M :T R E E ) F riday, M ay 01, 2009 11:00 AM (E DT ) Q 1 2009 877-407-0782

Figure 18. Earnings Calendar

Source. Company reports
 Page 14

C omparable C ompany Analys is > W eb 2 .0

P ric e P erformanc e
C ompa ny Na me C ur rency T ic ker E x change U S D Ma rket C ap ($m) C urrent Pric e 1 Wk 1 Mth 3 Mth 6 Mth 1 Yr 52 We ek

Acce le riz e N ew Me dia, Inc. US D A CL Z OT C B B 1 0.4 0.3 8 18.8 % 7 2.7 % 8 .6% -2 4.0 % -47 .2% -51. 3%
Actoz S of t C o., L td. KR W A 052 790 KO SE 9 4.7 1 4,80 0.0 0 15.6 % 3 2.7 % 48 .0% 74 .9% 91.7 % -7.5 %
AQ Inte ractive , Inc. JPY 3 838 TSE 2 3.4 4 3,20 0.0 0 0.0 % 3 0.9 % 50 .0% 8 .3% -78 .2% -81. 6%
As s ocia ted Media H oldings Inc. US D A S MH OT C P K 0 .1 0.0 0 42.9 % 4 2.9 % -8 0.0% -7 5.0 % 81.8 % -96. 0%
B igstring Corp. US D B S GC OT C B B 0 .7 0.0 1 -6.7 % 3.7% -1 7.6% -4 8.1 % -92 .2% -93. 6%
B e tawave Corpora tion US D B W AV OT C B B 3 .8 0.1 3 0.0 % -27. 8% -3 5.0% -3 8.1 % -55 .2% -69. 0%
B e yond Commerce, Inc. US D B Y OC OT C B B 5 2.9 1.2 8 -0.8 % 1 32.7 % 25 .5% -3 9.0 % -44 .3% -61. 2%
B right T hings plc GBP A IM:B G T AI M 4 .3 0.0 1 -14. 5% -14. 5% 17 .6% 56 .4% -41 .2% -65. 4%
B roa dW ebAs ia Inc. US D B W BA OT C P K 3 8.2 0.4 5 -11. 8% -40. 0% -1 8.2% -6 9.8 % -85 .0% -84. 5%
C DC C orp. US D C H IN .A N as da qG S 13 5.9 1.2 6 10.5 % 3 8.5 % 12 .5% -1 3.1 % -66 .1% -68. 0%
C hina G ate wa y C orpora tion US D CGWY OT C B B 0 .0 0.0 0 1 00. 0% 1 00.0 % 0 .0% -8 6.7 % -96 .7% -95. 6%
C hine s e G amer International TWD G TS M:3 083 GT S M 47 9.6 19 0.0 0 8.0 % 2 4.2 % 10 6.5% 18 1.5% 74.3 % -4.0 %
C ornerW orld C orporation US D CWR L OT C B B 7 .7 0.1 2 -14. 3% -14. 3% -5 2.0% -4 0.0 % -84 .0% -85. 0%
C yberplex Inc. C AD T S X:CX TSX 5 3.5 1.2 2 35.6 % 1 65.2 % 24 8.6% 17 1.1% 62.7 % 8.9 %
D ADA S pA E UR C M :DA CM 9 2.6 4.2 9 -8.7 % -13. 2% -3 9.6% -3 6.5 % -66 .7% -73. 5%
D XN Holdings B hd MY R DXN KL SE 1 8.9 0.3 0 5.4 % 5.4% -1 9.2% -1 5.7 % -46 .8% -47. 3%
D ibz Inte rnational, Inc. US D DIB Z OT C P K 0 .0 0.0 0 -90. 0% -90. 0% -9 0.0% -9 8.0 % -98 .0% -98. 0%
D igitalP ost Inte ra ctive , Inc. US D DG L P OT C B B 1 .1 0.0 2 -25. 0% 2 75.0 % -4 0.0% -5 7.1 % -92 .9% -94. 6%
D igitalT own, Inc. US D DG T W OT C B B 6 7.9 2.5 0 -16. 7% 2 5.0 % -2 3.1% -4 1.2 % 13.6 % -59. 0%
D olphin Digital Me dia, Inc. US D DP DM OT C B B 2 7.7 0.5 7 -14. 9% 1 6.3 % -2 7.8% -3 7.4 % NM -49. 6%
E olith C o. L td. KR W A 041 060 KO SE 2 4.6 70 0.0 0 26.1 % 2 1.7 % 18 .6% 6 .1% -33 .0% -44. 9%
E xte ns ions , Inc. US D E XT I OT C P K 1 4.2 0.1 5 -25. 0% -25. 0% 18 5.7% 50 .0% 0.0 % -85. 1%
F inancia l Media G roup, Inc. US D F NGP OT C B B 0 .5 0.0 1 -15. 8% -36. 0% -9 0.0% -9 7.3 % -96 .0% -99. 2%
F luid M us ic Ca nada, Inc. C AD T S X:F MN TSX 1 4.2 0.3 3 -45. 0% 0.0% -5 .7% -1 7.5 % NM -83. 8%
F rogs te r Interactive P icture s AG E UR FR G XT R A 2 4.2 7.7 2 10.3 % 1 08.6 % 28 .7% 69 .7% 71.9 % -1.7 %
G a ma nia Digital E ntertainment C o., L td. TWD 6 180 GT S M 15 5.1 3 4.4 0 1.8 % 1 7.8 % 52 .5% 12 5.6% 9.9 % -6.9 %
G a me On C o L td. JPY 3 812 TSE 8 9.6 9 3,00 0.0 0 2.3 % 1 5.8 % -2 4.3% 25 .2% -8. 8% -43. 1%
G e oS e ntric O yj E UR G E O1V H LS E 3 5.8 0.0 3 -25. 0% 0.0% -2 5.0% -2 5.0 % -50 .0% -57. 1%
G iant Intera ctive G roup, Inc. US D GA NYS E 1,7 10. 8 7.5 7 4.3 % 2.9% 28 .3% 24 .9% -35 .5% -56. 0%
G iga Media Ltd. US D G IG M N as da qG S 33 3.6 6.1 8 10.5 % 9.5% -1 0.2% -3.5% -59 .2% -68. 9%
G ravity C o., L td US D G RV Y N as da qG M 2 6.1 0.9 4 10.6 % 5 1.6 % 59 .3% 13 .3% -35 .2% -53. 0%
G ree, Inc. JPY T S E :36 32 TSE 1,2 67. 3 5,70 0.0 0 5.2 % 1 0.0 % 14 .9% NM NM -9.5 %
G ungH o O nline E ntertainment, Inc. JPY 3 765 OS E 14 5.6 12 7,50 0.0 0 -1.5 % 1 0.9 % 17 .1% 15 .2% -47 .7% -70. 7%
H anbitS oft, Inc. KR W A 047 080 KO SE 8 2.9 5,03 0.0 0 45.6 % 4 9.3 % 51 .1% 52 .4% 9.3 % -28. 2%
IAC /InterActiveC orp. US D I ACI N as da qG S 2,3 39. 7 1 6.6 0 2.9 % 1 3.8 % 12 .4% 14 .4% -61 .0% -67. 1%
IAS E nergy, Inc. US D I AS C .A OT C B B 4 .9 0.0 7 55.6 % 0.0% 25 0.0% -5 0.0 % -69 .6% -80. 0%
IdeaE dge, Inc. US D O TC B B :ID AE OT C B B 1 6.6 0.3 9 14.7 % -2.5 % -5 3.0% -8 1.4 % -45 .1% -86. 2%
is ee media Inc. C AD IEE T S XV 4 .6 0.1 1 10.0 % 3 7.5 % -1 2.0% 57 .1% -65 .6% -69. 4%
J umbuck E ntertainment P ty Ltd. AU D A S X:J M B AS X 1 7.3 0.4 8 -4.0 % 6.7% 23 .1% -2.0% -20 .0% -26. 7%
J umpT V Inc. C AD T S X:J T V TSX 5 4.0 0.5 8 5.5 % 3 8.1 % 93 .3% -1 9.4 % -3. 3% -54. 7%
K a boos e Inc. C AD T S X:K AB TSX 6 6.4 0.5 8 0.0 % 6 5.7 % 46 .8% -2 1.6 % -58 .3% -59. 4%
K ings oft Co. Ltd. HKD 3 888 S E HK 44 8.9 3.2 4 -1.5 % 2 0.9 % 17 .8% 88 .4% 13.7 % -24. 8%
Lingo Media Corporation C AD T S XV :LM T S XV 8 .4 0.8 0 -3.6 % -11. 1% -2 0.0% -5 2.4 % -58 .3% -63. 6%
Live World Inc. US D L VW D OT C P K 2 .5 0.0 8 -38. 5% -60. 0% 6 .7% 14 .3% -50 .0% -89. 3%
LookS mart, Ltd. US D L OOK N as da qG M 2 0.3 1.1 9 -0.8 % 1 9.0 % -2 0.7% -3 3.1 % -67 .9% -75. 2%
M agnitude Information S ys tems Inc. US D M AG Y OT C B B 4 .4 0.0 1 -33. 3% -47. 4% -6 3.0% -5 0.0 % -47 .4% -66. 7%
M ixi, Inc. JPY 2 121 TSE 58 9.1 38 5,00 0.0 0 -1.5 % 2 2.2 % -3 0.5% -4 0.3 % -58 .5% -59. 8%
M ode rn Times G roup Mtg AB SE K MT G B OM 1,2 51. 5 15 5.5 0 -1.0 % 2 3.9 % -5 .2% -9.3% -62 .6% -65. 8%
M oggle , Inc US D M MOG OT C B B 8 3.5 2.3 0 15.0 % 1 5.0 % 53 .3% NM NM 0.0 %
M OK O.mobi L imited AU D MKB AS X 5 .5 0.0 9 20.0 % 5 0.0 % 80 .0% 63 .6% 2 46. 2% -10. 0%
N E OW IZ G ames C orpora tion KR W A 095 660 KO SE 50 6.3 7 0,00 0.0 0 42.6 % 7 9.3 % 24 9.1% 30 3.5% 1 06. 2% -3.3 %
N etDragon W ebS oft, Inc. HKD 7 77 S E HK 28 3.7 4.1 6 -3.3 % 2 4.6 % 42 .5% 30 .0% -57 .9% -69. 4%
N ete as e.com I nc. US D NT E S N as da qG S 3,6 14. 0 2 9.3 7 2.7 % 3 2.1 % 60 .7% 40 .5% 44.4 % 2.2 %
N eXplore Corpora tion US D N XP C OT C P K 5 0.2 0.9 0 20.0 % 5 5.2 % -1 0.0% 30 .4% NM -37. 9%
N gi G roup Inc. JPY 2 497 TSE 3 3.7 2 7,40 0.0 0 20.1 % 5 7.5 % -4 6.0% -6 4.9 % -81 .2% -83. 6%
N orthgate Te chnologies L imited IN R 5 900 57 BS E 3 0.3 4 3.2 5 8.8 % 4 2.5 % -1 8.1% -4 2.9 % -89 .1% -90. 8%
Open T e xt Corp. US D O TE X N as da qG S 1,8 22. 2 3 5.1 1 4.4 % 1 0.5 % 12 .3% 37 .4% 1.4 % -10. 2%
Openwave S ys tems Inc. US D O PW V N as da qG S 11 1.6 1.3 4 8.1 % 7 1.8 % 83 .6% 59 .5% -44 .9% -47. 5%
P e rfect W orld C o., Ltd. US D P W RD N as da qG S 89 6.3 1 6.9 9 5.2 % 3 7.8 % 0 .1% -8.2% -38 .0% -49. 3%
P hotoChannel N etwork s Inc. C AD T S XV :P N T S XV 4 7.6 1.7 0 6.2 % 4.9% -2 .9% -1 5.0 % -51 .8% -59. 0%
Quepa s a C orp. US D Q PSA N as da qC M 1 1.7 0.9 2 -7.1 % -18. 6% -4 9.7% -6 2.1 % -68 .8% -73. 4%
OA O R B C Information S ys tems US D R BC I R TS 7 2.8 0.5 3 28.0 % 1 18.8 % -1 2.5% -8 6.9 % -94 .2% -94. 3%
S handa Interactive E ntertainme nt L td. US D S NDA N as da qG S 3,6 20. 4 5 2.1 8 22.2 % 4 3.7 % 94 .3% 10 1.6% 73.9 % 12.0 %
S hutte rf ly, Inc. US D S F LY N as da qG S 27 0.5 1 0.7 5 10.3 % 2 0.9 % 43 .5% 64 .9% -26 .4% -40. 2%
S K C ommunications Co., Ltd. KR W A 066 270 KO SE 31 5.4 1 0,20 0.0 0 10.9 % 3 7.8 % 63 .2% 12 .2% -33 .1% -48. 2%
S N AP Inte ra ctive , Inc. US D S T VI OT C B B 7 .6 0.7 0 -6.7 % -26. 3% -3 3.3% 25 0.0% 0.0 % -35. 2%
S N M G lobal H oldings US D S NM N OT C P K 0 .0 0.0 0 -100 .0% -100 .0% -10 0.0 % -1 00.0 % -100 .0% -100 .0%
S ocia l Media V e nures , Inc. US D S MVI OT C P K 0 .0 0.8 8 -26. 7% -26. 7% -1 5.4% 44 .3% NM -82. 4%
S ohu. com Inc. US D S OH U N as da qG S 1,9 05. 8 5 0.0 0 8.2 % 3.2% 22 .9% 1 .2% -11 .5% -45. 4%
S ite s earch C orporation US D S TPC OT C B B 2 8.2 3.5 0 -30. 0% NM NM NM NM -30. 0%
S park N etworks , Inc. US D L OV AM E X 4 6.2 2.2 5 0.0 % -1.7 % -1 2.5% -1 9.9 % -47 .3% -51. 6%
S pectrumDN A, Inc. US D S P XA OT C B B 7 .3 0.1 5 -21. 1% -25. 0% 0 .0% -2 5.0 % NM -75. 0%
T encent Holdings L td. HKD 7 00 S E HK 14, 360 .1 6 1.8 0 2.5 % 3 1.5 % 43 .7% 37 .0% 32.6 % -14. 2%
T he P arent C ompany US D K IDS .Q OT C P K 0 .4 0.0 2 59.1 % 7 5.0 % -7 0.8% -9 8.4 % -99 .5% -99. 6%
T he 9 L imited US D NC TY N as da qG S 35 5.3 1 3.2 5 -6.4 % 1 4.1 % -6 .1% -1 3.9 % -34 .2% -53. 5%
T he S treet.com, Inc. US D T S CM N as da qG M 6 4.7 2.1 2 6.5 % 9.3% -3 7.5% -4 3.5 % -77 .1% -77. 7%
T otal S port Online A S N OK T OS O OT C N O 0 .2 0.0 4 0.0 % 0.0% -2 0.0% -2 0.0 % -33 .3% -60. 0%
T ree.C om, Inc. US D TR EE N as da qG M 5 4.9 5.5 0 7.4 % 2 9.4 % 32 .9% 14 4.4% NM -50. 5%
U nis erve C ommunications Corp. C AD T S XV :U S S T S XV 0 .8 0.0 4 -20. 0% -20. 0% 0 .0% -5 0.0 % -88 .6% -91. 1%
U nited Online Inc. US D UNTD N as da qG S 44 0.3 5.3 6 5.7 % 3 1.1 % -1 3.8% -3 2.2 % -48 .8% -57. 1%
U OMO Media , Inc US D U OMO OT C B B 9 .4 0.1 1 37.5 % 8 3.3 % 57 .1% -4 2.1 % -72 .5% -86. 3%
V a lueC lick Inc. US D V CL K N as da qG S 87 7.1 1 0.1 1 9.9 % 5 6.3 % 62 .5% 49 .1% -46 .1% -51. 9%
V O IS , Inc. US D V OIS OT C B B 2 .5 0.3 0 30.4 % -25. 0% -2 5.0% -6 0.0 % NM -94. 6%
W ebze n Inc. US D W ZE N N as da qG M 3 4.3 2.8 9 28.4 % 9 2.7 % 20 1.0% 18 9.0% -3. 7% -35. 1%
W iz za rd S of twa re Corpora tion US D W ZE AM E X 3 2.5 0.6 9 50.0 % 7 2.5 % -1 0.4% -1 8.8 % -68 .5% -70. 6%
W oozyF ly, Inc. US D W ZY F OT C B B 2 .6 0.1 5 0.0 % 0.0% NM NM NM -96. 3%
W orlds .com Inc. US D W DDD OT C B B 8 .9 0.1 7 0.0 % -5.6 % 13 .3% -2 2.7 % -62 .2% -62. 2%
W ynds torm C orporation US D W YND OT C B B 3 .1 0.1 7 41.7 % 4 1.7 % 41 .7% -3 2.0 % NM -80. 0%
XIN G AG E UR O 1B C XT R A 19 3.0 2 8.2 8 -0.8 % 1 3.1 % -6 .6% 13 .6% -22 .5% -39. 4%
Y e dangOnline Corp. KR W A 052 770 KO SE 11 5.4 9,81 0.0 0 13.9 % 4 0.1 % 42 .6% 45 .3% -9. 2% -21. 8%
Y nk K orea Inc. KR W A 023 770 KO SE 1 0.1 5,50 0.0 0 20.6 % 5 7.6 % 27 .5% -3 3.7 % -58 .5% -64. 3%
ZipLocal Inc. C AD T S XV :ZIP T S XV 0 .3 0.0 1 -66. 7% -66. 7% -5 0.0% -7 5.0 % -96 .3% -97. 5%
H igh 1 00. 0% 2 75.0 % 25 0.0% 30 3.5% 2 46. 2% 12.0 %
Low -100 .0% -100 .0% -10 0.0 % -1 00.0 % -100 .0% -100 .0%
A vera ge 437.0 3.3% 23.8% 15.7% 4.3% -33.2% -57.6%
M edian 3.6 % 1 9.0 % 0 .1% -1 5.4 % -47 .3% -60. 6%

Figure 19. Price Performance

Source. Capital IQ
 Page 15

C omparable C ompany A nalys is > W eb 2.0

V aluatio n Multiples
P r imary US D Market TE V/LT M TE V/ NTM TE V/LT M TE V/NTM
C om pany Nam e S ec to r Co untry E xc hange Tic ker Cap ($m) R evenu e R evenu e E BITDA E BITDA P /LT M E P S P /NT M E P S
Acce le rize N ew Me dia, Inc. D irect Marketing U nite d S tates OT C B B AC LZ 10. 4 3.9 x - - - - -
Actoz S of t C o., L td. G aming S outh K ore a K OS E A 052 790 94. 7 1.0 x - 4.8 x - 15 .7x -
AQ Inte ractive , Inc. G aming J a pan TSE 3 838 23. 4 - - - - - -
As s ocia ted Media H oldings Inc. Mobile U nite d S tates OT C P K AS MH 0. 1 8.4 x - - - - -
B igstring Corp. Ins ta nt M es s aging U nite d S tates OT C B B BS G C 0. 7 23.6 x - - - - -
B e tawave Corpora tion Me dia U nite d S tates OT C B B B WA V 3. 8 - - - - - -
B e yond Commerce, Inc. S ocia l Ne tworking U nite d S tates OT C B B BYO C 52. 9 30.8 x - - - - -
B r ight T hings plc S ocia l Ne tworking U nite d K ingdom AIM AIM :B G T 4. 3 17.2 x - - - - -
B r oa dW ebAs ia Inc. S ocia l Ne tworking U nite d S tates OT C P K B WB A 38. 2 - - - - - -
C D C C orp. G aming H ong K ong N as da qG S C HIN .A 1 35. 9 0.4 x 0.5x 10.2 x 8.4x - 1 9.4 x
C hina G ate wa y C orpora tion Mobile U nite d S tates OT C B B CG W Y 0. 0 0.0 x - - - - -
C hine s e G amer International G aming T a iwan GT S M G T S M :308 3 4 79. 6 9.2 x - 18.3 x - 24 .9x -
C ornerW orld C orporation C ontent U nite d S tates OT C B B CWR L 7. 7 7.0 x - - - - -
C yberplex Inc. Advertis ing C anada TSX T S X:C X 53. 5 1.1 x 0.8x 13.2 x 8.8x 11 .2x 1 2.2 x
D AD A S pA S ocia l Ne tworking Italy CM CM:DA 92. 6 0.6 x - 3.8 x - 5. 4x -
D XN Holdings B hd S ocia l Ne tworking M alays ia KL SE D XN 18. 9 0.5 x - 3.8 x - 3. 7x -
D ibz Inte rnational, Inc. S N S A pps U nite d S tates OT C P K D IB Z 0. 0 - - - - - -
D igitalP ost Inte ra ctive , Inc. C ontent U nite d S tates OT C B B DGLP 1. 1 5.0 x - - - - -
D igitalT own, Inc. S ocia l Ne tworking U nite d S tates OT C B B D G TW 67. 9 - - - - - -
D olphin D igital Me dia, Inc. S ocia l Ne tworking U nite d S tates OT C B B DP DM 27. 7 - - - - - -
E olith C o. L td. G aming S outh K ore a K OS E A 041 060 24. 6 1.3 x - - - - -
E xte ns ions , Inc. C ontent U nite d S tates OT C P K E XT I 14. 2 - - - - - -
F inancia l Media G roup, Inc. D irect Marketing U nite d S tates OT C B B F NGP 0. 5 - - - - - -
F luid M us ic Ca nada, Inc. Me dia U nite d S tates TSX T S X:F MN 14. 2 - - - - - -
F rogs te r Interactive P icture s AG G aming G ermany XT R A F RG 24. 2 4.4 x - - - - -
G a ma nia D igital E ntertainment C o., L td. G aming T a iwan GT S M 6 180 1 55. 1 1.2 x - 8.4 x - 20 .1x -
G a me O n C o L td. G aming J a pan TSE 3 812 89. 6 0.5 x - 1.8 x - 9. 3x -
G e oS e ntric O yj Mobile F inland H LS E G E O1V 35. 8 4.8 x - - - - -
G iant Intera ctive G roup, Inc. G aming C hina NYS E GA 1,7 10. 8 - - - - 1. 7x 1 2.6 x
G iga Media Ltd. G aming T a iwan N as da qG S G IG M 3 33. 6 1.4 x 1.4x 5.6 x 5.7x 10 .6x 9.7x
G ravity C o., L td G aming S outh K ore a N as da qG M G R VY 26. 1 - - - - - -
G ree, Inc. S ocia l Ne tworking J a pan TSE T S E :3 632 1,2 67. 3 41.2 x - - - - -
G u ngH o O nline E ntertainment, Inc. Me dia J a pan OS E 3 765 1 45. 6 1.1 x - 6.3 x - - -
H anbitS of t, Inc. G aming S outh K ore a K OS E A 047 080 82. 9 1.3 x - - - - -
IAC /InterActiveC orp. Me dia U nite d S tates N as da qG S IAC I 2,3 39. 7 0.4 x 0.4x 9.1 x 3.5x 17 .4x 2 8.5 x
IAS E nergy, Inc. V ide o C anada OT C B B IA S C .A 4. 9 - - - - - -
IdeaE dge, Inc. S ocia l Ne tworking U nite d S tates OT C B B OT C B B :IDA E 16. 6 - - - - - -
is ee media Inc. C ontent C anada T S XV IE E 4. 6 2.5 x - - - - -
J umbu ck E ntertainment P ty Ltd. S ocia l Ne tworking A us tralia AS X AS X:J MB 17. 3 1.0 x - 2.6 x - 7. 7x -
J umpT V Inc. V ide o C anada TSX T S X:J T V 54. 0 2.9 x - - - - -
K a boos e Inc. C ontent C anada TSX TS X:K AB 66. 4 1.1 x 1.0x 11.1 x 6.2x - -
K ings oft Co. Ltd. G aming C hina S E HK 3 888 4 48. 9 3.0 x - 7.9 x - 11 .7x -
Lingo M edia Corporation Le arning C anada T S XV TS XV :LM 8. 4 2.7 x - - - - -
Live World Inc. S ocia l Ne tworking U nite d S tates OT C P K LV W D 2. 5 0.1 x - - - - -
LookS mart, Ltd. D irect Marketing U nite d S tates N as da qG M L OOK 20. 3 - - - - - -
Magnitu de Information S ys tems Inc. S ocia l Ne tworking U nite d S tates OT C B B MAG Y 4. 4 - - - - - -
Mixi, Inc. S ocia l Ne tworking J a pan TSE 2 121 5 89. 1 4.2 x - 10.9 x - 28 .9x -
Mode rn Times G roup Mtg AB Me dia S we den OM MT G B 1,2 51. 5 1.1 x 1.1x 6.7 x 8.1x 3. 6x 8.5x
Moggle , Inc G aming U nite d S tates OT C B B MMO G 83. 5 - - - - - -
MOK O.mobi L imited S ocia l Ne tworking A us tralia AS X MK B 5. 5 4.3 x - - - - -
N E OW IZ G ames C orpora tion G aming S outh K ore a K OS E A 095 660 5 06. 3 3.7 x - 13.6 x - 27 .6x -
N etD ragon W ebS oft, Inc. G aming C hina S E HK 777 2 83. 7 1.6 x - 3.4 x - 9. 4x -
N ete as e.com I nc. G aming C hina N as da qG S NT E S 3,6 14. 0 - - - - 2. 4x 1 5.2 x
N eXplore Corpora tion C ontent U nite d S tates OT C P K N XP C 50. 2 - - - - - -
N gi G roup Inc. Me dia J a pan TSE 2 497 33. 7 - - - - 10 .1x -
N orthgate Te chnologies L imited D irect Marketing India BS E 59 005 7 30. 3 0.2 x - 1.3 x - 2. 0x -
Open T e xt Corp. C ollaboration C anada N as da qG S O TE X 1,8 22. 2 2.5 x 2.3x 10.0 x 8.7x 37 .2x 1 4.7 x
Openwave S ys tems Inc. Mobile U nite d S tates N as da qG S OP W V 1 11. 6 0.1 x 0.1x - 2.4x - 4 4.7 x
P e rf ect W or ld C o., Ltd. G aming C hina N as da qG S PW R D 8 96. 3 - - - - 1. 6x 8.3x
P hotoChannel N etwork s Inc. D igital Imaging C anada T S XV T S XV :P N 47. 6 2.9 x 1.9x - 6.0x - 2 2.0 x
Qu epa s a C orp. S ocia l Ne tworking U nite d S tates N as da qC M QP S A 11. 7 - - - - - -
OA O R B C Information S ys tems Me dia R us s ia R TS R B CI 72. 8 0.0 x - 0.1 x - - -
S handa Interactive E ntertainme nt L td. G aming C hina N as da qG S S NDA 3,6 20. 4 0.2 x 1.2x 0.5 x 2.8x 3. 0x 1 7.5 x
S hutte rf ly, Inc. D igital Imaging U nite d S tates N as da qG S S FL Y 2 70. 5 0.9 x 0.9x 6.4 x 5.8x 60 .8x -
S K C ommunications Co., Ltd. S e arch S outh K ore a K OS E A 066 270 3 15. 4 2.0 x - 21.5 x - - -
S N AP Inte ra ctive , Inc. D ating U nite d S tates OT C B B S T VI 7. 6 2.0 x - 6.4 x - 9. 9x -
S N M G lobal H oldings Me dia U nite d S tates OT C P K S N MN 0. 0 - - - - - -
S ocia l Media V e nures , Inc. S ocia l Ne tworking U nite d S tates OT C P K S MV I 0. 0 0.1 x - - - - -
S ohu. com Inc. G aming C hina N as da qG S S OH U 1,9 05. 8 3.7 x 3.2x 8.8 x 7.4x 12 .3x 1 2.2 x
S ite s earch C orporation S ocia l Ne tworking U nite d S tates OT C B B STPC 28. 2 - - - - - -
S park N etworks , Inc. S ocia l Ne tworking U nite d S tates AM E X L OV 46. 2 0.8 x - 3.8 x - 11 .1x -
S pectrumDN A, Inc. Me dia U nite d S tates OT C B B S P XA 7. 3 - - - - - -
T encent Holdings L td. P orta l C hina S E HK 700 14,3 60. 1 14.9 x - 30.4 x - 40 .8x -
T he P arent C ompany Me dia U nite d S tates OT C P K K ID S .Q 0. 4 0.2 x - - - - -
T he 9 L imited G aming C hina N as da qG S NC TY 3 55. 3 - - - - 1. 1x 9.1x
T he S treet.com, Inc. Me dia U nite d S tates N as da qG M TSCM 64. 7 - - - - 68 .3x -
T otal S port Online A S Me dia N orway OT C NO T OS O 0. 2 4.6 x - - - - -
T r ee.C om, Inc. P orta l U nite d S tates N as da qG M TR E E 54. 9 0.3 x 0.3x - - - -
U nis erve C ommu nications Corp. S ocia l Ne tworking C anada T S XV T S XV :U S S 0. 8 0.1 x - 29.5 x - - -
U nited Online Inc. Me dia U nite d S tates N as da qG S U N TD 4 40. 3 1.1 x 0.7x 4.9 x 3.1x - 7.4x
U OMO Media , Inc Me dia C anada OT C B B U OMO 9. 4 15.4 x - - - - -
Va lueC lick Inc. Me dia U nite d S tates N as da qG S VC LK 8 77. 1 1.2 x 1.4x 6.6 x 5.7x - 1 7.0 x
VO IS , Inc. S ocia l Ne tworking U nite d S tates OT C B B V OIS 2. 5 - - - - - -
W ebze n Inc. G aming S outh K ore a N as da qG M W ZE N 34. 3 - - - - - -
W iz za rd S of twa re Corpora tion P odcas ting U nite d S tates AM E X W ZE 32. 5 5.4 x - - - - -
W oozyF ly, Inc. S ocia l Ne tworking U nite d S tates OT C B B W ZY F 2. 6 - - - - - -
W orlds .com Inc. C ontent U nite d S tates OT C B B W DD D 8. 9 - - - - 3. 3x -
W ynds torm C orporation C ontent U nite d S tates OT C B B W YND 3. 1 - - - - - -
XIN G AG S ocia l Ne tworking G ermany XT R A O 1B C 1 93. 0 2.9 x - 9.1 x - 20 .1x -
Y e dangOnline Corp. G aming S outh K ore a K OS E A 052 770 1 15. 4 2.2 x - 9.9 x - 13 .1x -
Y nk K orea Inc. G aming S outh K ore a K OS E A 023 770 10. 1 0.7 x - - - - -
ZipLocal Inc. D irectory C anada T S XV T S XV:ZIP 0. 3 0.6 x - - - - -
H igh 14,3 60. 1 41.2 x 3.2x 30.4 x 8.8x 68 .3x 4 4.7 x
Low 0. 0 - 0.1x 0.1 x 2.4x 1. 1x 7.4x
A verage 437. 0 4.2x 1.1x 8.8x 5.9x 15.8x 16.2x
Median 34. 0 1.3 x 1.0x 6.7 x 5.9x 10 .9x 1 3.6 x

Figure 20. Valuation Comparison

Source. Capital IQ
 Page 16

C omparable C ompany A nalys is > W eb 2.0

Su mmary b y C ountry
C om pany Nam e U S D Market Cap ($m) Avg US D Market C ap ($m) U S D LT M T otal R ev ($m) U S D LT M To tal E B IT DA ($m) E B IT DA %

U nited S ta tes 41 C hina 27, 195.3 China 3,021. 7 U nited S ta tes 3, 744. 3 C hina 1,654. 1 C hina 48. 4%
C a na da 11 U nited S ta tes 4, 726.8 S weden 1,251. 5 C hina 3, 349. 5 S weden 259. 4 Aus tra l ia 37. 2%
C hina 9 J a pan 2, 148.8 J a pa n 358. 1 S weden 1, 608. 2 U nited S ta tes 240. 1 T a iwa n 29. 7%
S outh K orea 9 C a na da 2, 072.2 Ta iwan 322. 8 C a na da 945. 2 C ana da 186. 1 J a pa n 26. 1%
J a pa n 6 S weden 1, 251.5 Ca na da 188. 4 S outh K orea 557. 2 J a pa n 129. 2 I ndia 17. 6%
T a iwa n 3 S outh K orea 1, 209.8 Hong K ong 135. 9 J a pa n 490. 8 T a iwa n 85. 6 S weden 16. 1%
A ustra lia 2 T a iwa n 968.3 S outh K orea 134. 4 H ong K ong 428. 1 S outh K orea 63. 6 I ta ly 16. 0%
G ermany 2 G erma ny 217.2 United S ta tes 115. 3 T a iwa n 348. 6 I ta ly 36. 1 M a la ys ia 13. 3%
N orwa y 1 H ong K ong 135.9 G erma ny 108. 6 I ta ly 226. 0 I ndia 23. 8 R uss ia 13. 1%
H ong K ong 1 I ta ly 92.6 Ita ly 92. 6 R uss ia 141. 9 H ong K ong 18. 8 S outh K orea 4.7%
F inla nd 1 R uss ia 72.8 R us sia 72. 8 I ndia 135. 4 R uss ia 18. 5 H ong K ong 4.4%
I ta ly 1 F inland 35.8 Finla nd 35. 8 M ala ys ia 76. 5 G erma ny 11. 7 U nited S ta tes -11.0%
U nited K ingdom 1 I ndia 30.3 India 30. 3 G erma ny 51. 9 M a la ys ia 10. 2 G erma ny -14.3%
I ndia 1 Aus tra lia 22.8 Ma la ysia 18. 9 Aus tra l ia 14. 1 Aus tra lia 2. 7 C a na da -18.0%
S weden 1 M a lays ia 18.9 Austra lia 11. 4 F inla nd 5. 8 N orwa y -1. 0 N orwa y -50.6%
R us sia 1 U nited K ingdom 4.3 United K ingdom 4. 3 N orwa y 2. 0 U nited K ingdom -1. 7 U nited K ingdom NA
M a la ys ia 1 N orwa y 0.2 Norwa y 0. 2 U nited K ingdom 0. 2 F inla nd -13. 1 F inla nd NA

G rand To tal 92 G rand T otal 40, 203.5 G rand To tal 437. 0 G rand T otal 12, 125.7 G rand T otal 2,724. 2 G rand T otal 6.9%

Figure 21. Comparison by Country

Source. Capital IQ

C omparable C ompany A nalys is > W eb 2.0

Su mmary b y Ex c hange
C om pany Nam e U S D Market Cap ($m) Avg US D Market C ap ($m) U S D LT M T otal R ev ($m) U S D LT M To tal E B IT DA ($m) E B IT DA %

OT C BB 22 N a sda qG S 16, 722.8 S E HK 5,030. 9 OM 1, 608. 2 N asda qG S 1,521. 9 NYS E 61. 9%

N a s da qG S 13 S E HK 15, 092.7 NY S E 1,710. 8 N a sda qG S 492. 6 SEHK 598. 0 S E HK 44. 4%
OT C P K 9 TSE 2, 003.2 Na s da qG S 1,286. 4 S E HK 417. 9 OM 259. 4 AS X 37. 2%
K OS E 7 NYS E 1, 710.8 OM 1,251. 5 NYS E 233. 3 NYSE 144. 4 GT S M 32. 5%
TSE 5 OM 1, 251.5 TS E 400. 6 CM 226. 0 TSE 109. 2 TSE 27. 7%
N a s da qG M 5 K OS E 1, 149.4 G TS M 317. 3 R TS 141. 9 K OS E 60. 7 N a sda qG S 26. 8%
T S XV 5 GT S M 634.7 K OS E 164. 2 BSE 135. 4 GTSM 39. 6 OS E 17. 8%
TSX 4 O T CB B 351.8 OS E 145. 6 OS E 112. 1 CM 36. 1 BSE 17. 6%
S E HK 3 XT R A 217.2 XT R A 108. 6 N a sda qG M 84. 7 BSE 23. 8 OM 16. 1%
A ME X 2 N a sda qG M 200.3 CM 92. 6 GT S M 79. 1 OS E 20. 0 CM 16. 0%
XT R A 2 TSX 188.1 RTS 72. 8 K LS E 76. 5 R TS 18. 5 K LS E 13. 3%
ASX 2 OS E 145.6 TS X 47. 0 TSE 75. 7 X TR A 11. 7 R TS 13. 1%
GTSM 2 O T CP K 105.6 Na s da qG M 40. 1 K OS E 71. 3 K LS E 10. 2 K OS E 6.1%
O T C NO 1 CM 92.6 AME X 39. 4 TSX 32. 9 AM E X 6. 3 N a sda qG M -0. 9%
H LS E 1 AM E X 78.7 HL S E 35. 8 AM E X 31. 7 AS X 2. 7 XT R A -14.3%
NYSE 1 R TS 72.8 BSE 30. 3 XT R A 25. 9 O T CN O -1. 0 TSX -14.8%
CM 1 T S XV 61.8 K LS E 18. 9 O T CP K 21. 0 AI M -1. 7 T S XV -15.6%
B SE 1 HLS E 35.8 O TC B B 16. 0 T S XV 9. 6 TSX -6. 4 O T CP K -27.9%
N a s da qCM 1 BSE 30.3 TS X V 12. 4 AS X 7. 0 T S XV -9. 8 O T CB B -31.8%
OS E 1 AS X 22.8 O TC P K 11. 7 HLS E 5. 8 N asda qC M -11. 4 AM E X -38.3%
A IM 1 K LS E 18.9 Na s da qCM 11. 7 O T CN O 2. 0 H LS E -13. 1 O T CN O -50.6%
OM 1 N a sda qC M 11.7 AS X 11. 4 O T CB B 1. 9 N asda qG M -16. 1 AI M NA
R TS 1 AI M 4.3 AIM 4. 3 AI M 0. 2 O T CP K -26. 5 N a sda qC M NA
K LS E 1 O T CN O 0.2 O TC NO 0. 2 N a sda qC M 0. 1 O T CB B -52. 5 HLS E NA

G rand To tal 92 G rand T otal 40, 203.5 G rand To tal 437. 0 G rand T otal 12, 125.7 G rand T otal 2,724. 2 G rand T otal 6.9%

Figure 22. Comparison by Exchange

Source. Capital IQ
 Page 17

Financing - Last Three Months (US$ m)

Month Company Name Country Angel/Seed Debt financing PIPE S eries A Series B Series C Series D Series E Grand Total
Feb-09 Twitter USA 35.0 35.0
Synthasite South A frica 20.0 20.0
Tremor Media USA 18.0 18.0
Offerpal Media USA 15.0 15.0
Imagini UK 13.5 13.5
Emergent Game Technologies USA 12.5 12.5
Outbrain Israel 12.0 12.0
Tvtrip France 9.0 9.0
Tongxue China 6.0 6.0
Oodle USA 5.6 5.6
TextDigger USA 4.3 4.3
OneSpot USA 4.2 4.2
Mixpo Canada 4.0 4.0
FetchDog USA 4.0 4.0
Virtual Fairground Netherlands 4.0 4.0
7 Billion People USA 3.0 3.0
FamilyLink.com USA 2.9 2.9
WhistleBox USA 2.3 2.3
Mendeley UK 2.0 2.0
Outright USA 2.0 2.0
Tvinci Israel 1.6 1.6
Filtrbox USA 1.4 1.4
MMO Life Netherlands 1.3 1.3
Cake Financial USA 1.3 1.3
fav.or.it UK 0.7 0.7
Feb-09 Total 13.3 24 .8 76.4 58.6 12.5 185.5

Mar-09 Vidyo USA 15.0 15.0

Buzznet USA 12.5 12.5
LendingClub USA 12.0 12.0
SendMe Inc. USA 12.0 12.0
Auditude USA 10.5 10.5
Glam Media U SA 10.0 10.0
Visible Measures U SA 10.0 10.0
Greystripe USA 5.5 5.5
OMGP OP USA 5.0 5.0
Apture USA 4.1 4.1
Simulmedia USA 4.0 4.0
Tynt Canada 3.9 3.9
AnySource Media USA 3.2 3.2
Pixazza U SA 3.1 3.1
Sports Composite DE USA 2.0 2.0
Hunch USA 2.0 2.0
Bit.ly U SA 2.0 2.0
AdultSpace USA 1.3 1.3
Myngle Netherlands 1.3 1.3
33Across USA 0.8 0.8
Three Melons Argentina 0.6 0.6
Mar-09 Total 1.3 1.3 0.6 32 .3 30.3 43.0 12.0 10.0 130.7

Apr-09 Collective Media USA 20.0 20.0

The Rubicon Project USA 8.0 5.0 13.0
Cellufun USA 10.0 10.0
ScanScout USA 8.1 8.1
DoubleTwist USA 5.0 5.0
Socialtext USA 4.5 4.5
TubeMogul USA 3.0 3.0
Socialcast USA 1.4 1.4
Scan & Target France 1.3 1.3
Apr-09 Total 9.4 8.0 4.4 40.0 4.5 66.3

Figure 23. Financing, Last Three Months

Source. Company reports

C ompany Des c riptio ns - C urrent Mo nth C apital Market A c tivity
C ompany
C ellu fun , LL C
C ollec tive Media, Inc .
do ubleT wis t Corpo ration
S c an & Target
S c anS co ut, In c.
S ocialcas t
S ocialtext In corporated
R ubicon P roject, Inc .
T ubeMogul, Inc.
Figure 24. Company Descriptions
Source. Company reports, Capital IQ, Crunchbase
Page 18
HQ W ebs ite Des criptio n
U nited S ta tes www. cellufun. com C ellufun, LL C opera tes as a n ad s ponso red mobile ga ming portal. The company’ s portal provides free enterta inment content, a s well a s
cas ua l, connected, a nd multiplay er games for ex isting a nd next-generation W eb-ena bled mobile phones . It a l so offers free s ingle-pla yer
games, a s well as multi-player vers ions on a s ubs cription ba s is . The c ompany ena bles subs cribers to persona liz e their ga ming profile; sa ve
scores ; crea te tea ms; partic ipa te in tournaments ; a nd sha re informa tion rela ted to tips , trick s, a nd bra gging rights . C ellufun wa s founded in
2005 and is bas ed in New Y ork, N ew Y ork.
U nited S ta tes www. collective-media . com C ollective Media , I nc. opera tes a s a n online a dvertising network tha t specializ es in audienc e ta rgeting a nd optimiz ation s olutions for
publishers a nd a dvertis ers in the United S ta tes. I t provides con text, beha v ior, re-ta rgeting, demogra phic, a nd geogra phic ta rgeting; a nd
dashboard, a reporting interfac e that pres ents a nd ma nipula tes ad performa nce da ta generated by ca mpa igns. T he compa ny a ls o offers a
network of online news s ites , a s well as enterta inment, s ports , a nd health si tes . In addition, it provides bra nd a dvertis ing a nd direct ma rketing
services . T he company wa s founded in 2005 a nd is bas ed in N ew Y ork, New Y ork .
U nited S ta tes www. doubletwis t. com doubleTwist C orpora tion des igns a nd develops entertai nment s oftwa re a pplica tions . T he company applica tions s hares a nd s y nchroniz es
pictures , video, and audio to medi a dev ices . I t offers doubleT wis t desk top, a n a pplica tion tha t ena bles c lients to tra ns fer, sha re, a nd sy nc
persona l media ; a nd Twis t me! , a network applica tion tha t a llows us ers to share photos, video, and audio files from the c lient’s profile pages.
doubleTwist C orpora tion wa s founded in 2007 a nd is ba s ed in S an F ra nc isco, Ca li fornia with an a dditiona l office in O s lo, Norway.
F rance www. s cana ndta rget. c om S ca n & Target provides a S a a S s olution for the rea l-time analy s is of tex t us er genera ted conten t (UG C ). S ca n & Target s olutions a re a imed
a t publis hers of community a nd s ocia l network s, moderation s ervice pro viders , providers of tec hnica l s olutions for Web 2. 0 (forums , blogs ,
cha t, s ocial buying, etc.) a nd profes siona l s ervices (C R M and conta ct centers).
U nited S ta tes www. s cans cout. com S ca nS cout, Inc. opera tes as a n online video advertising network. I t s erves publis hers , advertise rs , a nd ad network s . The company was
founded in 2005 a nd is ba s ed in B oston, M ass a chus etts with additiona l offic es in New Y ork a nd L os Angeles .
U nited S ta tes www. s ocialca st. com S oci a lcas t provides soc ial network ing pla tforms a nd s olutions for both consumer-fa cing clients and enterpris e cus tomers . The compa ny wa s
founded in 2005 a nd is ba s ed in Irv ine, C al ifornia .
U nited S ta tes www. s ocialtext.com S oci a ltext Inc orpora ted develops enterpris e s oc ia l s oftware. T he company focus es on offering c olla bora tion platform tha t a llows
organizations to c ollaborate. It offers P eople, whic h ena bles users to integra te s oc ial network ing with enterprise colla bora tion; W eblog tha t
supports colla bora tiv e a nd ongoing conv ersa tions a mong collea gues ; W orks pa c e, an enterpris e wiki for sea rc hing informa tion and people;
a nd S ig na ls tha t a mplifies, cla rifies, and complements other c ollabora tion ac tiv ities , a s well a s prov ides a medium for information s ha ring.
The c ompa ny a ls o provides D ashboa rd, which aggrega tes content from S oc ialtex t wik i pa ges , the W eb, a nd enterprise sy stems; an d
S oci a lC alc s preadsheets tha t inc lude informa tion from other sprea ds heets or works pace pa ges . The compa ny wa s founded in 2002 a nd is
based in P a lo Alto, C a lifornia .
U nited S ta tes www. rubiconproject.com R ubic on P roject, I nc. , an a dv ertis ing technology c ompa ny , provides online a dv ertis ing solutions to W eb publishers a nd a d networks . I t also
offers a d network optimiz a tion serv ices , a s well a s ad qua lity protection progra ms . In a ddition, the company prov ides solutions to s top
unwa nted a ds in tra ck s by protecting W eb publis hers. T he compa ny was founded in 1998 a nd is ba sed in Los Angeles, Ca lifornia.
U nited S ta tes www. tubemogul. c om TubeM ogul, I nc. opera tes as a n online video ana lytics a nd dis tribution company worldwide. It focuses on prov iding v ideo publis hing tools .
The c ompa ny provides a single point for deploy ing uploads to the video s haring s ites , a nd a nalytics on who, wha t, a nd how v ideos are being
viewed. It serv es content produc ers, media companies , a d a ge ncies , digita l consulta nts, record la be ls, film s tudios , politicians , c onsumer
products orga niz a tions , and corporations. The compa ny wa s founded in 2006 a nd is ba sed in B erkeley , C alifornia.
 Page 19

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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