09-04-28 web 2.0 weekly

SOFTWARE & SERVICES 28 APRIL 2009

W E B 2 . O W E E K L Y

DAVID SHORE, CFA, MBA 416.860.6784

[email protected]

Arun Thomas (Associate) 416.860.7666

WEEK FOUR IN APRIL MOSTLY QUIET; MEDIA COMPANY BATANGA RAISES $7.5 MILLION

PICK-UP IN ACT IVITY ONLY MARGINAL IN WEEK FOUR The fourth week of April had only a marginal number of capital raises (four) and not enough to push the month above March and February levels. Total f inancings (month-to-date) were $102.3 million, with February and March closing off at $185.5 mm and $159.5 mm, respectively. As of last week, a total of 16 deals closed, with the $20 mil lion raise by Collective Media and $16 mil lion by GOOM Radio being major contributors.

With four days left in April, i t is evident that the month may l ikely f inish at or sl ightly below March levels, unless a few high dollar f inancings materialize. We speculate that capital market activity in Apri l (for Web 2.0 companies) world-wide has dropped from prior months, potentially as a fol low-on (time lagged) effect of the equity markets. With a seeming capital market revival on the horizon (as exhibited by stock market index levels) and if sustainable, we should expect institutional investors to participate in venture capital funds or direct investments in private companies – albeit slowly.

Financing Activity Last Three Months

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Capital Market Activity: Four weeks into April and we saw 16 companies raising money, with GOOM Radio and Collective Media sti ll leading the list with $16 mill ion and $20 mill ion, respectively. The largest raise last week was by Batanga – raising $7.5 mill ion. The month-to-date total capital raised stands at $102.3 mil lion. The Rubicon Project (ad network sector) and Cellufun (gaming sector) followed GOOM Radio, raising $13 mill ion and $10 mil lion, respectively.

Price Performance: Most of the companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1), with 22 companies showing positive returns on the week. Modern Times Group Mtg AB (MTG B-OM) led the group with a 27.7% return, while DigitalTown Inc. (DGTW-OTCBB) had the worst return, dropping 21.7% in the week. Two companies had better than 20% price increases last week.

This report has been created by Analysts that are employed by Research Capital Corporation, a Canadian Investment Dealer.

For further disclosures, please see last page of this report. www.researchcapi ta l .com

Toronto 416 .860 .7600 Montrea l 514.399 .1500 Vancouver 604 .662 .1800 Calgary 403 .265.7400 Regina 306 .566 .7550

THE WE B 2 . 0 UNI VE RSE

Ninety-two public Web 2.0 companies identified: Our Web 2.0 universe contains 92 companies, with a combined market cap of ~ $41 bill ion (Figure 1). The average market cap for the group is ~$452 mil lion (but a median of only $45.8 mil lion), with average trai ling revenue of $145.7 mil lion (median $51.8 mil lion). The companies are also generally profitable, with a median EBITDA margin of 17.6%. On a valuation basis, the overall average is 4.7x trai ling revenue (median 1.3x) and 9.1x trail ing EBITDA (median 7.6x). Thirteen of the companies have more than 500 employees.

Comparable C ompany Analys is > Web 2.0

C ompany Name L TM as o f T icker Exchange

Trading

Currency HQ

Current

Pr ice

USD Market

C ap ($m)

USD LTM Total

R ev ($m)

USD L TM Total

E B ITDA ($m)

EBITDA

%

TEV/LTM

R evenue

TEV/LTM

EB ITDA Employees

Acce le rize New Media, Inc. 1 2/31 /2008 AC LZ OTC BB USD United S ta tes 0 .49 13.4 3.8 (4 .8) NM 4.7 x - 11

Actoz S of t C o., L td. 1 2/31 /2008 A052790 KOS E KR W South Korea 14, 700 93.2 69. 5 1 3.9 20 .0% 0.9 x 4.7x NA

AQ Inte ractive , Inc. 1 2/31 /2008 3838 T S E J PY J apan 47 ,100 .00 26.2 61. 6 4 .9 8 .0% - - NA

Ass ocia ted Media Holdings Inc. 6 /30 /2007 AS MH OTC PK USD United S ta tes 0 0 .1 0.1 (2 .3) NM 8.1 x - 3 B igstring Corp. 1 2/31 /2008 BS GC OTC BB USD United S ta tes 0 .01 0 .7 0.1 (2 .1) NM 23.6 x - 4

Be tawave Corpora tion 12/31 /2008 BW AV OTC BB USD United S ta tes 0 3 .2 7.7 (1 1.8) NM - - 45

Be yond Commerce, Inc. 1 2/31 /2008 BYOC OTC BB USD United S ta tes 1 .49 61.6 1.8 (8 .6) NM 35.5 x - 43

B r ight T hings plc 9 /30 /2008 AIM:BGT AIM GBP United K ingdom 0 5 .0 0.2 (1 .6) NM 20.6 x - 3 ,125 B roa dW ebAs ia Inc. 9 /30 /2008 BW BA OTC PK USD United S ta tes 0 .45 38.2 0.0 (4 .6) NM - - 37

C DC C orp. 9 /30 /2008 CHIN .A Nasda qGS USD Hong Kong 1 126.3 428 .1 1 8.8 4 .4% 0.4 x 9.7x NA

C hina Gatewa y C orpora tion 9 /30 /2008 CGWY OTC BB USD United S ta tes 0 .00 0 .0 6.7 (6 .6) -9 8.9% 6.0 x - NA

C hines e Gamer International 1 2/31 /2008 GT SM:3083 GT SM TWD T aiwan 215 540.7 46. 2 2 3.3 50 .5% 1.1 x 13.3 x NA C ornerW orld C orporation 1 /31 /2009 CWR L OTC BB USD United S ta tes 0 .10 6 .4 1.3 NM NM 0.8 x 4.7x 574

C yberplex Inc. 1 2/31 /2008 TS X:C X T S X C AD C ana da 1 53.8 46. 7 3 .9 8 .4% 0.5 x 3.9x NA

DADA S pA 9 /30 /2008 CM:DA CM EUR Ita ly 5 .85 123.7 221 .2 3 5.3 16 .0% - - NA

DXN Holdings B hd 11/30 /2008 DXN KL SE MYR Ma la ys ia 0 20.2 76. 7 1 0.2 13 .3% 5.6 x - 11 D ibz Inte rnational, Inc. NA DIBZ OTC PK USD United S ta tes 0 .00 0 .0 NA NM NM - - 3

D igitalPost Inte ra ctive , Inc. 9 /30 /2008 DGLP OTC BB USD United S ta tes 0 1 .3 0.4 (3 .3) NM - - 6

D igitalT own, Inc. 1 1/30 /2008 DGTW OTC BB USD United S ta tes 2 .35 63.6 NM (2 .5) NM 2.2 x - NA

Dolphin D igital Media, Inc. NA DPDM OTC BB USD United S ta tes 1 26.1 NA NM NM - - NA E olith C o. L td. 1 2/31 /2007 A041060 KOS E KR W South Korea 760 .00 40.7 18. 6 (0 .1) -0 .3% - - 22

E xtens ions , Inc. 1 2/31 /2008 EXT I OT C PK USD United S ta tes 0 14.2 NM NM NM 0.0 x - 29

F inancia l Media G roup, Inc. 1 1/30 /2008 FNGP OTC BB USD United S ta tes 0 .00 0 .3 6.8 1 .2 18 .3% 5.2 x - NA

F luid Mus ic Canada, Inc. 9 /30 /2008 TS X:FMN T S X C AD United S ta tes 0 15.0 4.2 (8 .6) NM 1.1 x 7.8x NA F rogs te r Interactive P icture s AG 6 /30 /2008 FRG XT R A EUR Germany 9 .06 27.8 5.3 (3 .2) -6 0.6% 0.4 x 1.7x NA

Gama nia Digital E ntertainment C o. , L td. 1 2/31 /2008 6180 GT SM TWD T aiwan 32 144.4 111 .5 1 6.1 14 .5% 6.9 x - 94

G ameOn C o L td. 1 2/31 /2008 3812 T S E J PY J apan 92 ,000 .00 90.9 76. 2 1 9.7 25 .9% - - NA

GeoS entr ic O yj 1 2/31 /2008 GEO1V HLSE EUR F inland 0 46.7 5.7 (1 2.8) NM 1.5 x 6.3x NA G iant Intera ctive Group, Inc. 1 2/31 /2008 GA NYS E USD C hina 8 .50 1,9 21.0 233 .6 14 4.6 61 .9% - - 636

G igaMedia Ltd. 1 2/31 /2008 GIGM Nasda qGS USD T aiwan 7 364.7 190 .4 4 6.0 24 .2% 40.8 x - NA

G ravity C o., L td 9 /30 /2008 GR VY Nasda qGM USD S outh Korea 0 .90 25.0 36. 5 7 .0 19 .2% 1.2 x 6.9x NA

G ree, Inc. 6 /30 /2008 TS E : 3632 T S E J PY J apan 5, 650 1,2 88.0 30. 0 1 0.8 36 .0% 1.2 x - NA

GungHo O nline E ntertainment, Inc. 1 2/31 /2008 3765 OS E J PY J apan 139 ,000 .00 162.7 114 .9 2 0.5 17 .8% 0.3 x 7.6x 3 ,200 HanbitS of t, Inc. 1 2/31 /2008 A047080 KOS E KR W South Korea 4, 770 77.9 51. 8 (1 4.6) -2 8.2% - - NA

IAC /InterActiveC orp. 1 2/31 /2008 IAC I Nasda qGS USD United S ta tes 15 .92 2,2 43.9 1 ,44 5.1 6 4.6 4 .5% - - NA

IAS E nergy, Inc. 1 /31 /2009 IAS C.A OTC BB USD C ana da 0 17.5 0.0 (0 .8) NM 2.1 x - NA

IdeaE dge, Inc. 1 2/31 /2008 OTC BB :IDAE OTC BB USD United S ta tes 0 .44 18.8 0.0 (4 .6) NM 0.9 x 2.5x 72 is eemedia Inc. 1 2/31 /2008 IE E T S XV C AD C ana da 0 4 .2 1.2 (4 .8) NM 2.6 x - 237

J umbuck E ntertainment P ty Ltd. 1 2/31 /2008 AS X:JMB AS X AUD Aus tra lia 0 .47 16.4 12. 7 4 .7 37 .2% 1.1 x 11.2 x NA

J umpT V Inc. 1 2/31 /2008 TS X:J T V T S X C AD C ana da 1 51.0 13. 4 (8 .4) -6 2.6% 3.7 x 9.5x 2 ,271

Ka boose Inc. 1 2/31 /2008 TS X:K AB T S X C AD C ana da 0 .59 67.4 66. 8 6 .6 9 .9% 3.1 x - NA K ingsoft Co. Ltd. 1 2/31 /2008 3888 S E HK HKD C hina 4 515.9 120 .2 4 6.3 38 .5% 0.2 x - NA

Lingo Media Corporation 9 /30 /2008 TS XV : LM T S XV C AD C ana da 0 .90 9 .5 3.3 (1 .4) -4 2.5% - - 90

LiveWorld Inc. 1 2/31 /2008 LV WD OTC PK USD United S ta tes 0 3 .1 11. 8 (0 .5) -4 .3% - - 13

LookSmart, Ltd. 1 2/31 /2008 LOOK Nasda qGM USD United S ta tes 1 .36 23.1 65. 0 (2 .0) -3 .1% 5.4 x 14.3 x NA Magnitude Information S ys tems Inc. 9 /30 /2008 MAGY OTC BB USD United S ta tes 0 6 .5 0.1 (3 .2) NM 1.4 x 8.5x 2 ,969

Mixi, Inc. 1 2/31 /2008 2121 T S E J PY J apan 483 ,000 .00 757.4 119 .8 4 5.6 38 .0% - - 3

Mode rn Times G roup Mtg AB 12/31 /2008 MTG B OM S E K Sweden 212 1,6 68.7 1 ,57 2.8 25 3.7 16 .1% 3.3 x - NA

Moggle , Inc 12/31 /2008 MMOG OTC BB USD United S ta tes 2 .30 83.5 NM (1 .1) NM 3.0 x 11.3 x NA MOKO.mobi L imited 12/31 /2008 MK B AS X AUD Aus tra lia 0 4 .4 1.0 (2 .1) NM 1.9 x 4.2x 2 ,426

NEOW IZ Games C orpora tion 12/31 /2007 A095660 KOS E KR W South Korea 58 ,400 .00 418.5 134 .3 3 6.1 26 .9% - - NA

NetDragon W ebS oft, Inc. 1 2/31 /2008 777 S E HK HKD C hina 5 313.1 87. 3 3 9.9 45 .7% - - 19

Nete as e.com I nc. 1 2/31 /2008 NT E S Nasda qGS USD C hina 30 .25 3,7 22.3 451 .8 29 3.7 65 .0% - - NA NeXplore Corpora tion 9 /30 /2007 NXPC OTC PK USD United S ta tes 1 41.8 NM (4 .9) NM 0.2 x 1.3x 286

Ngi G roup Inc. 1 2/31 /2008 2497 T S E J PY J apan 36 ,300 .00 45.8 100 .4 3 0.9 30 .8% 2.4 x 9.6x 3 ,400

Northgate Te chnologies L imited 12/31 /2008 590057 BS E INR India 46 31.9 135 .1 2 3.8 17 .6% 0.1 x - 627

Open T e xt Corp. 1 2/31 /2008 OT E X Nasda qGS USD C ana da 33 .54 1,7 40.7 769 .3 19 5.0 25 .3% - - NA Openwave S ys tems Inc. 1 2/31 /2008 OPW V Nasda qGS USD United S ta tes 1 99.1 199 .6 (1 0.2) -5 .1% 2.6 x - NA

Pe rfect W orld C o., Ltd. 1 2/31 /2008 PW R D Nasda qGS USD C hina 16 .78 885.3 210 .5 11 3.9 54 .1% - - 74

PhotoChannel Network s Inc. 1 2/31 /2008 TS XV : PN T S XV C AD C ana da 2 43.3 16. 2 (0 .8) -4 .9% 0.0 x 0.2x NA

Quepa s a C orp. 1 2/31 /2008 QPS A Nasda qCM USD United S ta tes 0 .87 11.1 0.1 (1 1.4) NM 0.1 x 0.3x NA OAO RB C Information S ys tems 12/31 /2007 R BC I R T S USD R uss ia 1 105.7 141 .0 1 8.4 13 .1% 0.8 x 5.9x 514

S handa Interactive E ntertainment L td. 1 2/31 /2008 SNDA Nasda qGS USD C hina 47 .30 3,2 81.8 522 .7 24 0.2 46 .0% 2.0 x 21.1 x NA

S hutte rf ly, Inc. 1 2/31 /2008 SF LY Nasda qGS USD United S ta tes 10 255.1 213 .5 2 8.4 13 .3% 1.8 x 5.8x 11

S K C ommunications Co., Ltd. 1 2/31 /2007 A066270 KOS E KR W South Korea 10 ,000 .00 306.4 154 .5 1 4.5 9 .4% 1.1 x - 33 S NAP Inte ra ctive , Inc. 1 2/31 /2008 ST V I OT C BB USD United S ta tes 1 7 .0 3.0 0 .9 31 .4% 0.0 x - NA

S NM G lobal Holdings 9 /30 /2008 SNMN OTC PK USD United S ta tes 0 .01 0 .0 2.0 (0 .7) -3 4.8% 3.8 x 9.0x 3 ,197

S ocia l Media Venures , Inc. 1 2/31 /2008 SMVI OT C PK USD United S ta tes 0 0 .0 0.1 (0 .1) -6 0.5% - - 15

S ohu. com Inc. 1 2/31 /2008 SOHU Nasda qGS USD C hina 50 .53 1,9 26.0 429 .1 18 0.5 42 .1% 0.8 x 3.8x 183 S ite s earch C orporation 1 /31 /2009 ST PC OTC BB USD United S ta tes 3 28.2 NM (1 .1) NM - - 7

S park Networks , Inc. 1 2/31 /2008 LOV AMEX USD United S ta tes 2 .25 46.3 57. 3 1 2.3 21 .5% 15.9 x 32.5 x 6 ,194

S pectrumDNA, Inc. 1 2/31 /2008 SP XA OTC BB USD United S ta tes 0 9 .7 0.1 (2 .5) NM 0.2 x - 347

T encent Holdings L td. 1 2/31 /2008 700 S E HK HKD C hina 65 .95 15,3 25. 4 1 ,04 7.9 51 2.5 48 .9% - - NA T he Parent C ompany 8/2/2008 KIDS .Q OTC PK USD United S ta tes 0 0 .3 112 .0 (1 3.5) -1 2.0% - - 310

T he9 L imited 12/31 /2008 NCT Y Nasda qGS USD C hina 9 .21 247.0 250 .2 8 4.3 33 .7% 4.6 x - 16

T he S treet.com, Inc. 1 2/31 /2008 TS CM Nasda qGM USD United S ta tes 2 71.9 71. 9 7 .0 9 .7% 0.3 x - 700

T otal S port Online A S 3 /31 /2006 TOSO OTC NO NOK Norwa y 0 .03 0 .1 2.0 (1 .0) -5 0.6% 0.1 x 29.5 x NA

T ree.C om, Inc. 1 2/31 /2008 TR E E Nasda qGM USD United S ta tes 6 58.3 228 .6 (2 3.9) -1 0.4% 1.0 x 4.5x 1 ,469 Unis erve C ommunications Corp. 1 1/30 /2008 TS XV : US S T S XV C AD C ana da 0 .04 0 .8 24. 4 0 .1 0 .4% 8.6 x - NA

United Online Inc. 1 2/31 /2008 UNTD Nasda qGS USD United S ta tes 5 390.2 669 .4 15 3.9 23 .0% 1.1 x 6.3x 1 ,189

UOMO Media , Inc 1 /31 /2009 UOMO OTC BB USD C ana da 0 .06 5 .1 0.6 (0 .5) -7 8.2% - - 4

Va lueC lick Inc. 1 2/31 /2008 VC LK Nasda qGS USD United S ta tes 10 840.6 625 .8 11 3.6 18 .2% - - NA VO IS , Inc. 1 2/31 /2008 VOIS OT C BB USD United S ta tes 0 .30 2 .5 0.0 (1 .3) NM 4.3 x - 110

W ebzen Inc. 1 2/31 /2008 WZEN Nasda qGM USD S outh Korea 3 33.0 21. 2 (4 .2) -1 9.8% - - NA

W izza rd S of twa re Corpora tion 12/31 /2008 WZE AMEX USD United S ta tes 0 .55 25.9 6.1 (6 .0) -9 8.2% - - 1

W oozyF ly, Inc. 1 2/31 /2008 WZYF OTC BB USD United S ta tes 0 2 .6 NM NM NM - - NA W orlds .com Inc. 9 /30 /2008 WDDD OTC BB USD United S ta tes 0 .17 8 .9 0.1 NM NM 3.1 x 9.8x 174

W ynds torm C orporation NA WYND OTC BB USD United S ta tes 0 1 .6 NA NM NM 2.2 x 9.8x NA

XING AG 12/31 /2008 O1B C XT R A EUR Germany 29 .77 199.0 45. 6 1 4.6 32 .0% 0.6 x - NA

YedangOnline Corp. 1 2/31 /2007 A052770 KOS E KR W South Korea 9, 670 112.7 51. 1 1 1.4 22 .4% 0.6 x - NA Ynk Korea Inc. 1 2/31 /2007 A023770 KOS E KR W South Korea 4 ,700 .00 8 .6 14. 5 (1 .1) -7 .6% - - -

Z ipLocal Inc. 1 2/31 /2008 TS XV : ZIP T S XV C AD C ana da 0 0 .3 2.6 (2 .8) NM 40.8 x 32.5 x 2 0,164

H igh 15,3 25. 4 1 ,572 .8 512.5 65 .0% 40.8 x 32.5 x 20 ,164

Low 0 .0 0.0 -23.9 -9 8.9% - - 0

Average 451.8 145.7 32.0 6.9% 4.7x 9.1x 1,122

Median 45.8 51. 8 1 .2 17 .6% 1.3 x 7.6x 183

Figure 1. Web 2.0 Universe Summary Source. Capital IQ

CAPIT AL M ARKET S ACT IV I TY (M &A AND F I NANCI NG )

Marginal activity - April financing will likely be below March: Last week closed with 16 financings (month-to-date April) totall ing $102.3 mil lion. The month of April (so far) has registered four deals greater than or equal to $10 mill ion and two deals greater than $15 mill ion. The month of March registered 22 financings (total $130.7 mil lion, average $5.9 mil lion) compared to 25 financings announced in February, total ling $185.5 mil lion, or $7.4 mil lion on average (Figure 2). The average value for February was above the $6.8 mil lion average for January, with four financings over $15 mill ion in February (Twitter, Synthasite, Tremor Media, and Offerpal Media) vs. no deals over $15 mill ion in January.

Financing Activity Last Three Months

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Figure 2. Financings, Last Three Months Source. Company reports

Collective Media largest deal in April: Four weeks into Apri l and Collective Media tops the l ist with a $20 mil lion raise, followed by Goom Radio and The Rubicon Project with $16 mil lion and $13 mil lion, respectively (Figure 3). For additional details, see Figures 23 and 24 (at end of note).

Financing Summary - Last Three Months

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Figure 3. Capital Market Activity, Last Three Months Source. Company reports

Social Networks is the most active sector: Activity over the last three months was busiest in the Social Networks sector, with 12 companies raising over $74.4 mil lion (Figure 4). The video sector has the next highest totals, with eight companies raising $63.4 mil lion.

Capital Market Activity by Sector - Last Three Months

74.4

63.457.4

41.9 41.437.0

22.5 20.616.0 15.0

12.0 12.0 11.06.5 5.5 4.3 4.1 4.1 3.9 3.1 2.0 2.0 1.4 1.3 1.30.0

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

CAPIT AL M ARKET S ACT IV I TY (P RI CE PE RFO RM ANCE )

Web 2.0 Index outperforms: Our Web 2.0 index (market-cap weighted) essentially mirrored the performance of 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

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

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 22 companies showing positive returns on the week. Modern Times Group Mtg AB (MTG B-OM) led the group with a 27.7% return while DigitalTown Inc. (DGTW-OTCBB) had the worst return, dropping 21.7% in the week.

1 Week Price Performance

-21.7%

-15.7%-5.5%

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11.8%13.7%

14.7%14.7%

17.3%19.9%

21.6%27.7%

-30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0%

Digita lTow n, Inc .CDC Corp.

PhotoChannel Netw orks Inc .Open Tex t Corp.

S park Netw orks , Inc .

The9 L imitedS hutterf ly , Inc .

IAC/InterA ctiveCorp.Openw ave S ys tems Inc .

G igaMedia Ltd.B eyond Commerce, Inc .

GameOn Co Ltd.United Online Inc .

A ctoz S of t Co. , Ltd.

AQ Interactive, Inc .Gamania Digita l Entertainment Co. ,

Cyberplex Inc .Tree.Com, Inc .

Gree, Inc .TheS treet.com, Inc .

V alueClick Inc .Neteas e.com Inc .

Perfect World Co. , Ltd.

Webzen Inc .S handa Interactive Entertainment Ltd.

Frogs ter Interactive Pictures AGS ohu.com Inc .

XING AGGiant Interactive Group, Inc .

GungHo Online Entertainment, Inc .HanbitS of t, Inc .

Chines e Gamer International

DADA S pALookSmart, Ltd.

Eolith Co. Ltd.Modern Times Group Mtg A B

Figure 6. 1-Week Price Performance Source. Capital IQ

INDUST RY NE WS (P ART NE RS HI PS, F I NANCI AL RES UL TS, NE W P RO DUCT S )

Key DevelopmentsCompany Headline Notes

Shutterfly, Inc . (NasdaqGS :S FLY) S hutterfly E xpands B eyond P hotos with New Coordinated

S uites of Des igner S tationery

S hutterfly Inc. announced the expans ion of its s tationery collection to include an array of new products and hundreds of exclus ive des igns by

s ome of the indus try's mos t celebrated des igners . B uilding on S hutterfly's pos ition in cards , the new personal s tationery line grows the

Company's des igns to cater to a variety of life's celebrations . S hutterfly's s uite of s tationery now offers new items s uch as personalized party

invitations . S hutterfly's S tationery Collection Includes , E xpanded occas ions for 5x7 s tationery cards . F rom moving announcements to

birthday invitations for a ll ages and s ocia l correspondence cards , S hutterfly's premium non-photo offering comes on heavy-weight cards tock

with envelopes . Made from 30% pos t-consumer was te, 5x7 s tationery cards are s old in s ets , from $1.39 per card. New, smaller 4.25x5.5

s tationery cards . Many of the new des igns have coordinated 4.25x5. 5 thank you cards for announcements and invitations . T he smaller card

provides an elegant way to s end a hand-written thank you or a note to s ay a s imple hello. C ards are s old in s ets with envelopes , from $0.89

per card. Des igner addres s labels . T he new s tylis h, coordinated addres s labels a llow cus tomers to add a small, but noticeable, personal touch

VOIS , Inc . (OTCBB :VOIS ) VOIS Inc. Launches New S ocia l S ourcing Webs ite VOIS Inc. launched a new socia l s ourcing webs ite a imed at s licing through the mala ise and red tape of the traditional recruitment and

employment model. V ois .com a ims to be the firs t s ocia l commerce s ite that leverages the power of s ocia l networking to help a global

audience find and offer immediate work. W ith VOIS , members can pos t work, find work and network--a ll without ironing s lacks or vis iting

K inkos . F rom the profes s ional's perspective, get to build rapport with peers , form virtual cros s -functional teams , and then bid on and tackle

both temporary and permanent projects . B uyers and s ellers a re encouraged to get to know more than each other's online handles and hourly

rates through chat rooms , interna l mes s aging, robus t profiles and even a trus ty rating s ys tem. W hile s tandard freelance marketplaces

typica lly take between 8-20% of the provider's payment by notorious ly nickel and diming us ers with fees and fine print, V OIS is adhering to a

'F reemium' model. T his model offers a free vers ion of its webs ite to any member but is s upported by pa id credits of its most frequent us ers .

DigitalFX International, Inc .

(OTCBB :DGFX)

DigitalF X International Inc. Appoints R ichard B urnett to

Lead S a les and Marketing

Digita lFX International Inc. announced that it has engaged leading direct s elling indus try expert R ichard B urnett, as a s pecia l advis or to

management to front its s a les and marketing efforts within its independent dis tributor network. B urnett's engagement is a critica l part of the

company's continued efforts to ensure s us ta inability and reliability, and to s et the s tage for future growth. His respons ibilities will include

as s es s ing and improving a ll aspects of the company's a ffiliate network, and he will a ls o s upport the management team in its efforts to further

develop the Company's market pos ition. R ichard B urnett is F ounder & C E O of T op Gun Network Inc. and has a 30 year track record of

helping individuals and companies dramatica lly increas e s a les and improve leadership performance.

CDC Corp. (NasdaqGS :CHIN.A); CDC

Games L imited; CDC G lobal S ervices ,

Inc .; CDC Software Corporation

CDC R eviews Alternatives F or T hree B us ines s es CDC Corp. announced that it plans to explore s trategic growth a lternatives for its three core bus ines s that have together increas ed 2008

aggregate Adjus ted E B IT DA (a ) from continuing operations (b) by 34% compared to 2007. T he three core bus ines s es are CDC S oftware

Corporation, CDC G lobal S ervices and CDC Games L imited. P eter Y ip, C E O of CDC Corp s aid, “Despite the global economic downturn,

three of our core bus ines s es achieved an impres s ive 34 percent increas e, on an aggregate bas is , in Adjus ted E B ITDA from continuing

operations in 2008 compared to the prior year. CDC Corporation has inves ted cons iderable time and effort to develop thes e various core

bus ines s es and each of them is at a different s tage of maturity. During 2008, CDC Corporation has improved s evera l of the key operating

metrics in thes e bus ines s es and is now in the proces s of exploring s trategic and growth a lternatives with respect to a ll of them. W e believe

that the exploration of s uch alternatives for thes e bus ines s es could ultimately unlock s hareholder va lue in the company, as we feel our

s hares are currently underva lued in the market. ”

CDC Corp. (NasdaqGS :CHIN.A) CDC Corp. R eports Unaudited E arnings R esults for the

F ourth Quarter and Y ear E nded December 31, 2008

CDC Corp. reported unaudited earnings results for the fourth quarter and year ended December 31, 2008. F or the quarter, the company

reported operating los s from continuing operations of $57,881,000, los s before income taxes of $87, 836, 000 and los s from continuing

operations of $84,287,000 or $0. 79 bas ic and diluted per s hare and net los s of $84, 015,000 or $0. 78 bas ic and diluted per s hare on tota l

revenues of $96,236,000 agains t operating los s from continuing operations of $8,986,000, loss before income taxes of $24,920,000 and los s

from continuing operations of $26,188, 000 or $0.24 bas ic and diluted per s hare and net los s of $93,999,000 or $0.88 bas ic and diluted per

s hare on tota l revenues of $106,926,000 for the s ame period a year ago. The company a ls o reported net cash provided by operating

activities $27,106,000. Adjus ted E B IT DA from continuing operations was $8.0 million compared to adjus ted E B ITDA of los s of $4.5 million,

respectively, for the fourth quarter of 2007.

For the year, the company reported operating los s from continuing operations of $71,424,000, los s before income taxes of $108,079,000 and

los s from continuing operations of $108,445,000 or $1.01 bas ic and diluted per s hare and net los s of $116,300,000 or $1. 08 bas ic and diluted

In the fourth quarter of 2008, the company recorded a goodwill and intangible as s et impairment charge of $49.0 million and an impairment cha

LookSmart, Ltd. (NasdaqGM:LOOK) LookS mart Announces Limited B eta T es t of

S martR otation, a C os t-per-acquis ition Driven Tool

LookS mart Ltd. announced the limited beta tes t of S martR otation, a cos t-per-acquis ition (C P A) driven tool that us es a tracking pixel to

automatica lly optimize campaigns bas ed on the bes t-converting ad creative. S martR otation is part of a la rger beta tes t of ad rotation and is

the lates t addition to LookS mart's AdCenter, a powerful ad s erving and keyword auction platform that enables advertis ers to manage return

on inves tment (R OI) through increas ed targeting and tracking. LookS mart's AdCenter proces s es more than a billion da ily queries for

LookS mart's s yndicated network and is us ed by thous ands of advertis ers via self-s ervice accounts , dedicated managed s ervices and bid

management through advanced AP I technology. T he AdCenter's ta rgeting and tracking features include geo-targeting, ad s cheduling, and

convers ion tracking and reporting and tra ffic management features like referrer white-and black-lis ting and campaign-level feed capping.

S martR otation is ava ilable in limited beta tes ting to qualified cus tomers .

Quepasa Corp. (NasdaqCM:QPSA) Quepas a .com and W orldV ibe E nterta inment Announce

E xclus ive P artnership

Quepas a Corp. ,owner of Quepas a .com, announced an exclus ive partnership with W orldV ibe E nterta inment G roup, LLC . Under the

partnership Quepas a .com will be the exclus ive online partner for E sMiP laneta .com, the fan s ite for 'B ata lla de las Americas , ' a mus ic-based

rea lity s how that s pans more than twenty countries throughout the Americas , including the U.S . T he firs t 2009 s eason is a ta lent search for

the band 'XM2, ' in which three former members of the Latin super-group Menudo(TM), s earch for their final member. T he fully-interactive,

vibrant online community, which will be powered by Quepas a .com in three languages : E nglis h, S panis h, and P ortuguese, will feature online

voting in which fans determine which contes tants move on and who goes home. P lus the genera l public will be invited to join the competition

by s ubmitting a video audition online and enter the contes t via the web. T he multimedia community will als o include exclus ive online

performance highlights , behind the s cenes footage, contes tant profiles and photos , us er-generated content, and the ability to upload

photographs and videos .

NetDragon WebSoft, Inc . (S EHK :777) NetDragon W ebS oft, Inc. 's E quity B uyback has expired NetDragon WebS oft, Inc. (S E HK :777) was granted shareholders approva l in the Annual G eneral Meeting held on J une 12, 2008. Under the

program the company intends to repurchase up to 10% of the is s ued share capita l. T he s hare capita l would be repurchased in the s tock

exchange. The s hare authority will expire earlies t of the conclus ion of the next Annual Genera l Meeting or by the revocation or variation of

this resolution by an ordinary resolution of the shareholders of the Company in genera l meeting. As of S eptember 30, 2008, the Company

has repurchased 9,370,500 s hares for a HK D 46.90 million (CNY 41.38 million). T he convers ion was made through www.oanda .com on

S eptember 30, 2008.

NetDragon WebS oft, Inc’s s hare repurchase program expired on April 21, 2009.

NetDragon WebSoft, Inc . (S EHK :777) NetDragon W ebS oft, Inc. announces an E quity B uyback NetDragon WebS oft, Inc. (S E HK :777) was granted shareholders approva l to repurchase s hares in the Annual G eneral Meeting held on April

21, 2009. Under the program, the company intends to repurchase up to 52, 857,086 s hares repres enting 10% of the is s ued share capita l of

the company. The Directors believe that it is in the interes ts of the Company and the S hareholders to have a genera l authority from the

S hareholders to enable the Directors to repurchase S hares on G E M. S uch repurchases may, depending on market conditions and funding

arrangements at the time, lead to an enhancement of the net as s ets of the Company and/or its earnings per S hare and will only be made

when the Directors believe that s uch purchases will benefit the Company and the S hareholders . T he program is valid until the earlies t of the

conclus ion of the next annual genera l meeting of the Company or the expiration of the period within which the next annual general meeting of

the Company is required by the Articles , or any applicable law of the C ayman Is lands to be held or the R epurchase Mandate being revoked

or varied by an ordinary resolution of the S hareholders in genera l meeting prior to the next annual genera l meeting.

Beyond Commerce, Inc.

(OTCBB :BYOC)

B eyond Commerce Inc. R eports R evenue R esults for the

Month of F ebruary 2009 ; P rovides R evenue G uidance

for the Months of April and May 2009

B eyond Commerce Inc. revenue results for the month of F ebruary 2009. T he company reported $3.3 million in revenues for the month of

F ebruary 2009, $2.3 million for the month of J anuary 2009 and $1.07 million for the month of December 2008.

The company is on track for continued s trong growth in revenue in the months of April and May 2009.

S itesearch Corporation (OTCBB :S TPC) S ites earch Corporation Announces E xecutive Changes On April 20, 2009, J ames S . Dixon res igned as C hief E xecutive Officer, P res ident, S ecretary and T reasurer of S ites earch Corporation. As a

co-founder and inves tor in S ites earch Corporation, Mr. Dixon will remain a Director of the Company. T he B oard of Directors appointed J effrey

S . P eters on, to s erve as the Chief E xecutive O fficer, S ecretary and T reasurer. Mr. P eters on will s erve in thes e pos itions and a ls o continue to

s erve as the cha irman of the B oard. T he company a ls o announced the res ignation of B ambi F rancis co as a Director at her reques t. Ms .

F rancis co has served as an outs ide Director for the Company s ince April, 2008.

E lectronic Arts Inc . (NasdaqGS :E RTS );

The9 L imited (NasdaqGS :NCTY)

The9 Limited - S pecia l/M&A C all T o dis cus s the highly anticipated game E A S P OR T S (TM) F IFA ONLINE 2 will begin its open beta tes t in mainland China

K ingsoft Co. L td. (S EHK :3888) K ingsoft C o. Ltd Mulls an E quity B uyback K ingsoft C o. L td will s eek s hareholder approval to repurchas e own shares at the Annua l G eneral Meeting to be held on May 25, 2009. Under

the propos ed buyback , the company intends to repurchas e up to 107,720,033 shares . R epurchases s ha ll be made on the s tock exchange.

MOKO.mobi L imited (ASX:MKB ) MOKO.mobi S igns Dea l with B oos t Mobile MOKO.mobi L imited has s igned an agreement with B oos t Mobile Aus tra lia that includes a revenue s hare on daily and monthly s ubs cription

charges , MMS , private media mess aging and advertis ing. MOKO.mobi is now available acros s a ll mobile networks in Aus tra lia .

NetDragon WebSoft, Inc. (S EHK:777) NetDragon Launches Open B eta T es ting for T he

Warlords in North America

NetDragon W ebS oft, Inc. announced that T he W arlords , the E nglis h vers ion of T ou Ming Zhuang Online, entered its open beta tes ting on

April 24. T he W arlords is a 2. 5 D MMOR PG game jointly created by NetDragon and China F ilm G roup, sharing the s ame s tory as the film

titled T he W arlords . It exhibits traditiona l C hinese martial arts through complicated s tories set in the la te Qing Dynas ty.


(OTCBB :BYOC)

Beyond Commerce, Inc. Announces the Launch of

Loca lAdlink

B eyond Commerce, Inc. announced the official launch of LocalAdL ink . com, a low cos t provider of online advertis ing for loca l bus ines ses

acros s the nation. LocalAdLink is a provider of services that enable local bus ines ses to reach loca l cus tomers with targeted Internet

advertis ing. T he cus tomer facing W eb s ite, Loca lAdLink. com, is a loca l s earch directory and acts as the central hub for the Loca lAdL ink

technology. When a cus tomer vis its LocalAdLink. com, proprietary geo-ta rgeting software identifies the cus tomer's location and displays

relevant loca l bus ines s lis tings . In addition, Loca lAdLink has created an Advertis ing Network that publis hes loca l bus ines s lis tings on its

owned and operated s ites , as well as partner s ites .

Figure 7. Key Developments Source. Capital IQ

VAL UAT IO N

MMOG companies lead market-cap charts: Nine companies in our Web 2.0 universe top US$1 bil lion in market capitalization (Figure 8). Sixty-four of the 92 companies have market caps under US$100 mill ion, with 28 under $10 mil lion. Online gaming companies dominate the top of the list.

Market Cap (USD m)

0.00.00.00.00.10.10.30.30.30.70.81.31.62.52.63.13.24.24.45.05.16.46.57.08.68.99.59.711.113.414.215.016.417.518.820.223.125.025.926.126.227.828.231.933.038.240.741.843.345.846.346.751.053.858.361.663.667.471.977.983.590.993.299.1105.7112.7123.7126.3144.4162.7199.0247.0255.1306.4313.1364.7390.2418.5515.9

757.4840.6885.3

1288.01668.71740.7

1921.01926.0

2243.93281.8

3722.3

540.7

0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000

S ocial Media V enures , Inc .Dibz International, Inc .S NM G lobal Holdings

China Gatew ay CorporationAs s oc iated Media Holdings Inc .

Total S port Online A SThe Parent Company

Financia l Media Group, Inc .Z ipLocal Inc .

B igs tring Corp.Unis erve Communications Corp.

Digita lPos t Interactive, Inc .Wynds torm Corporation

V OIS , Inc .Wooz yFly , Inc .L iveWorld Inc .

Betaw ave Corporationis eemedia Inc .

MOKO.mobi LimitedB right Things plcUOMO Media , Inc

CornerWorld CorporationMagnitude Information S ys tems Inc .

S NAP Interactive, Inc .Y nk K orea Inc .Worlds .com Inc .

L ingo Media CorporationS pectrumDNA , Inc .

Quepas a Corp.A cceleriz e New Media , Inc .

Extens ions , Inc .Fluid Mus ic Canada, Inc .

Jumbuck Enterta inment Pty Ltd.IA S Energy , Inc .IdeaEdge, Inc .

DXN Holdings BhdLookSmart, L td.Gravity Co. , L td

Wiz z ard S of tw are CorporationDolphin Digita l Media , Inc .

AQ Interactive, Inc .Frogs ter Interactive Pictures AG

S ites earch CorporationNorthgate Technologies L imited

Webzen Inc .B roadWebAs ia Inc .

Eolith Co. Ltd.NeXplore Corporation

PhotoChannel Netw orks Inc .Ngi Group Inc .

S park Netw orks , Inc .GeoS entric Oy jJumpTV Inc .

Cyberplex Inc .Tree.Com, Inc .

B eyond Commerce, Inc .Digita lTow n, Inc .

K aboos e Inc .TheS treet.com, Inc .

HanbitS oft, Inc .Moggle, Inc

GameOn Co Ltd.A ctoz S oft Co. , L td.

Openw ave S ys tems Inc .OAO RBC Information S ys tems

Y edangOnline Corp.DADA S pACDC Corp.

Gamania Digita l Enterta inment Co. , L td.GungHo Online Enterta inment, Inc .

X ING AGThe9 Limited

S hutterf ly , Inc .S K Communications Co. , L td.

NetDragon WebS oft, Inc .G igaMedia Ltd.

United Online Inc .NEOWIZ Games Corporation

K ings oft Co. Ltd.Chines e Gamer International

Mix i, Inc .V alueClick Inc .

Perfect World Co. , L td.Gree, Inc .

Modern Times Group Mtg A BOpen Tex t Corp.

Giant Interactive Group, Inc .S ohu.com Inc .

IA C/InterActiveCorp.S handa Interactive Enterta inment Ltd.

Neteas e.com Inc .Tencent Holdings Ltd.

Figure 8. Market Cap Ranking Source. Capital IQ

TEV/Revenue (LTM) averages 4.2x: The overall average TEV/Revenue (LTM) multiple for our group is 4.2x – same as last week (Figure 9). However, this is skewed by Gree (3633-TSE) at 40.8x and Beyond Commerce Inc. (BYOC-OTCBB) at 35.5x. The median is only 1.5x. Note that we exclude multiples greater than 50x. Thirty-one companies have multiples under 1.5x.

TEV/LTM R evenue (x)

0.00.00.00.10.10.10.20.20.20.30.30.40.40.50.60.60.80.80.80.90.91.01.11.11.11.11.11.21.21.41.51.8

1.92.02.12.22.22.42.62.63.03.13.13.33.73.8

4.34.64.75.25.45.66.0

6.98.18.6

10.6

15.9

20.6

23.6

35.5

40.8

A verage, 4.2

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

Social Media Venures, Inc.

OAO RBC Information Systems

Fluid Music Canada, Inc.

Openwave Systems Inc.

Uniserve Communications Corp.

Shanda Interactive Entertainment

LiveWorld Inc.

The Parent Company

Northgate Technologies Limited

Tree.Com, Inc.

IAC/InterActiveCorp.

CDC Corp.

GameOn Co Ltd.

DXN Holdings Bhd

ZipLocal Inc.

Ynk Korea Inc.

DADA SpA

Shutterfly, Inc.

Spark Networks, Inc.

Jumbuck Entertainment Pty Ltd.

Actoz Soft Co., Ltd.

United Online Inc.

SNM Global Holdings

Kaboose Inc.

Cyberplex Inc.

Gamania Digital Entertainment Co.,

ValueClick Inc.

HanbitSoft, Inc.

GungHo Online Entertainment, Inc.

Modern Times Group Mtg AB

GigaMedia Ltd.

SNAP Interactive, Inc.

NetDragon WebSoft, Inc.

SK Communications Co., Ltd.

iseemedia Inc.

Eolith Co. Ltd.

YedangOnline Corp.

Open Text Corp.

PhotoChannel Networks Inc.

JumpTV Inc.

NEOWIZ Games Corporation

Lingo Media Corporation

XING AG

MOKO.mobi Limited

Kingsoft Co. Ltd.

Sohu.com Inc.

Wizzard Software Corporation

Total Sport Online AS

Accelerize New Media, Inc.

Frogster Interactive Pictures AG

Mixi, Inc.

DigitalPost Interactive, Inc.

CornerWorld Corporation

GeoSentric Oyj

Associated Media Holdings Inc.

UOMO Media, Inc

Chinese Gamer International

Tencent Holdings Ltd.

Bright Things plc

Bigstring Corp.


Gree, Inc.

Figure 9. TEV/Revenue Ranking Source. Capital IQ

TEV/Revenue (LTM) by country/exchange: We 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 6.0x (up from 5.8x last week). On a geographic basis, the United States has the most companies (41), trading at an average of 4.8x revenue (sl ightly up from 4.7x last week) (Figure 11). Eleven of the companies are Canadian (average 7.7x revenue).

Average TEV/LTM Revenue - By Exchange

0.10.20.30.5

0.60.81.51.51.82.02.13.03.34.05.66.0

6.8

13.0

15.9

20.6

0.0

5.0

10.0

15.0

20.0

25.0

AIM

AM

EX

TS

XV

NasdaqG

S

OT

CB

B

KLS

E

GT

SM

OM

OT

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K

TS

X

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M

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E

AS

X

HLS

E

RT

S

KO

SE

XT

RA

OS

E

SE

HK

NasdaqC

M

1 2 5 13 22 1 2 1 9 4 5 5 2 1 1 7 2 1 3 1

(x)

# Companies

Average TEV/LTM Revenue - By Country

0.4 0.10.50.80.81.3

1.51.51.9

3.34.85.6

7.7

16.3

20.6

0.0

5.0

10.0

15.0

20.0

25.0

Unite

d

Kin

gdom

Taiw

an

Canada

Mala

ysia

Unite

d

Sta

tes

Sw

eden

Chin

a

Austr

alia

Fin

land

Japan

Russia

South

Kore

a

Germ

any

Hong

Kong

Norw

ay

1 3 11 1 41 1 9 2 1 6 1 9 2 1 1

(x)

# Companies

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

TEV/EBITDA (LTM) averages 9.0x: The average multiple for the 30 companies with positive EBITDA (and multiples under 100x) is 9.0x LTM EBITDA (from 8.7x last week), led by Tencent Holdings Ltd.’s (700-SEHK) 32.5x multiple (Figure 12). Sixteen of the companies have EBITDA multiples under 7x. The median multiple is 7.6x (vs. 7.1x last week).

TEV/LTM EB ITDA (x)

0.2 0.31.3 1.7

2.53.8 3.9 4.2 4.5 4.7 4.7

5.8 5.9 6.3 6.3 6.97.6 7.8 8.5 9.0 9.5 9.6 9.7 9.8 9.8

11.2 11.3

13.314.3

21.0 21.1

29.5

32.5

Average, 9.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

OAO RBC Information Systems

Shanda Interactive Entertainment Ltd.


GameOn Co Ltd.



DXN Holdings Bhd


United Online Inc.

DADA SpA



Shutterfly, Inc.

GigaMedia Ltd.

ValueClick Inc.

GungHo Online Entertainment, Inc.


Gamania Digital Entertainment Co., Ltd.


Sohu.com Inc.

Kingsoft Co. Ltd.

Open Text Corp.

CDC Corp.

XING AG

YedangOnline Corp.

Kaboose Inc.


Cyberplex Inc.

Mixi, Inc.


SK Communications Co., Ltd.

Uniserve Communications Corp.


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 7.8x. On a geographic basis, the United States has the most companies (41), trading at an average of 8.6x EBITDA (Figure 14). Eleven of the companies are Canadian (average 11.5x EBITDA).

Average TEV/LTM EBITDA - By Exchange

0.31.72.45.25.96.3

7.17.67.77.88.69.39.613.3

16.3

29.5

32.5

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

AM

EX

OT

CN

O

TS

XV

GT

SM

TS

E

NasdaqG

S

NasdaqG

M

OT

CB

B

AS

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OS

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X

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S

OT

CP

K

KO

SE

XT

RA

NasdaqC

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2 1 5 2 5 13 5 22 2 1 4 1 1 9 7 2 1

(x)

# Companies

Average TEV/LTM EBITDA - By Country

1.70.0

3.95.9

6.37.78.68.69.711.512.4

13.3

29.5

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

Norw

ay

Taiw

an

Chin

a

Canada

Hong

Kong

Japan

Unite

d

Sta

tes

Austr

alia

Fin

land

Russia

South

Kore

a

Germ

any

India

1 3 9 11 1 6 41 2 1 1 9 2 1

(x)

# Companies

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

P/E (LTM) averages 16.4x: The average multiple for the 32 companies with positive earnings (and multiples under 100x) is 16.4x LTM EPS (from 15.9x last week), led by TheStreet.com’s (TSCM-NASDAQ) 75.7x multiple (Figure 15). Thirteen of the companies have P/E multiples under 10x. The median is just 11.4x.

P/E LTM (x)

0.7 1.5 1.9 2.1 2.5 2.7 3.3 3.9 4.97.4 7.4

9.2 9.2 10.3 11.1 11.3 11.6 12.5 12.9 13.4 13.415.6 16.7

18.821.2

23.0

28.2

35.6 36.2

43.6

57.3

75.7

A verage, 16.4

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

The9 Limited

Perfect World Co., Ltd.

Giant Interactive Group, Inc.


Netease.com Inc.

Shanda Interactive Entertainment Ltd.

Worlds.com Inc.

DXN Holdings Bhd


DADA SpA



GameOn Co Ltd.



Cyberplex Inc.

GigaMedia Ltd.

Sohu.com Inc.

YedangOnline Corp.

Ngi Group Inc.

Kingsoft Co. Ltd.



Gamania Digital Entertainment Co., Ltd.

XING AG



Open Text Corp.

Mixi, Inc.


Shutterfly, Inc.

TheStreet.com, Inc.

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 12.8x. On a geographic basis, the United States has the most companies (41), trading at an average of 18.7x earnings (Figure 17). Eleven of the companies are Canadian (average 23.6x EPS).

Average P/E - By Exchange

8.89.210.311.311.612.112.8

16.718.723.4

30.136.2

57.3

75.7

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

TS

XV

RT

S

NasdaqG

M

OT

CP

K

AM

EX

TS

E

OS

E

OT

CB

B

TS

X

HLS

E

GT

SM

AS

X

XT

RA

NasdaqG

S

5 1 5 9 2 5 1 22 4 1 2 2 2 13

(x)

# Companies

Average P/E - By Country

0.0

6.08.4

9.210.311.311.6

18.118.723.6

57.3

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

Russia

Canada

Unite

d

Sta

tes

Japan

Fin

land

Taiw

an

Austr

alia

Germ

any

Chin

a

South

Kore

a

Norw

ay

1 11 41 6 1 3 2 2 9 9 1

(x)

# Companies

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

UP CO MI NG EVE NTS

Earnings CalendarCompany Date & Time Quarter Conf Call Details

S hutterfly, Inc. (NasdaqGS :S F LY ) Wednesday, April 29, 2009 5:00 PM (E DT ) Q1 2009 877-591-4956

IAC /InterActiveCorp. (NasdaqGS : IAC I) Wednesday, April 29, 2009 11:00 AM (E DT ) Q1 2009 NA

Openwave S ys tems Inc. (NasdaqGS :OPWV ) Wednesday, April 29, 2009 2:00 PM (P DT ) Q3 2009 800-289-0508

T ree.C om, Inc. (NasdaqGM:T R E E ) F riday, May 01, 2009 11:00 AM (E DT ) Q1 2009 877-407-0782

LookS mart, L td. (NasdaqGM:LOOK ) Monday, May 04, 2009 5:00:00 PM (E DT ) Q1 2009 800-762-8779

V alueC lick Inc. (NasdaqGS :V C LK ) Tuesday, May 05, 2009 4:30 PM (E DT ) Q1 2009 818-575-4677

United Online Inc. (NasdaqGS :UNTD) Tuesday, May 05, 2009 2:00 PM (P DT ) Q1 2009 877-681-3374

Open T ext C orp. (NasdaqGS :OT E X) Wednesday, May 06, 2009 5:00:00 PM (E DT ) Q3 2009 800-733-7571

Figure 18. Earnings Calendar Source. Company reports

Comparable Company Analys is > Web 2 .0

P rice Performance

C ompany Name Cur rency Tic ker Exchange USD Market C ap ($m) Current Pric e 1 Wk 1 Mth 3 Mth 6 Mth 1 Yr 52 Week

Acce le rize New Media, Inc. USD ACL Z OTC BB 13.4 0.4 9 53.1% 113.0% 40 .0% -2.0% -31 .9% -37. 2%

Actoz S of t C o., L td. KR W A052790 KO S E 93.2 14,700.0 0 0.0% 33.0% 38 .7% 83 .5% 82.6% -8.1%

AQ Inte ractive , Inc. J PY 3838 T S E 26.2 47,100.0 0 0.2% 41.2% 63 .5% 25 .1% -78 .6% -80. 0%As socia ted Media Holdings Inc. USD A SMH OTC PK 0 .1 0.0 0 0.0% 7.1% -70.0% -81.3% 36.4% -97. 0%

B igstring Corp. USD B SGC OTC BB 0 .7 0.0 1 1.4% -6.7% -17.6% -30.0% -93 .2% -93. 6%

Be tawave Corpora tion USD B W AV OTC BB 3 .2 0.1 1 -21. 4% -26. 7% -38.9% 0 .0% -70 .3% -73. 8%

Beyond Commerce, Inc. USD B YOC OTC BB 61.6 1.4 9 -0.7% 192.2% 60 .2% -25.5% -36 .6% -54. 8%Bright T hings plc GBP A IM:B GT AI M 5 .0 0.0 2 0.0% 4.2% 34 .6% 20 .7% -50 .0% -50. 0%

Broa dWebAs ia Inc. USD B W BA OTC PK 38.2 0.4 5 0.0% -11. 8% -55.4% -25.0% -80 .0% -84. 5%

C DC C orp. USD CH IN .A Nasda qGS 126.3 1.1 8 -15. 7% 3.5% 40 .5% -3.7% -66 .1% -68. 9%

C hina Gatewa y C orpora tion USD CGWY OTC BB 0 .0 0.0 0 100. 0% 100.0% 0 .0% -86.7% -96 .7% -95. 6%C hine se G amer International TW D G TS M:3083 GT SM 540.7 215.0 0 14.7% 13.8% 138.1% 188.6% 100. 9% 0.0%

C ornerW orld C orporation USD CW R L OTC BB 6 .4 0.1 0 -16. 7% -28. 6% -75.6% -50.0% -80 .4% -87. 5%

C yberplex Inc. C AD T S X:CX T S X 53.8 1.2 3 2.5% 39.8% 215.4% 173.3% 61.8% -0.8%

DADA S pA EUR CM:DA CM 123.7 5.8 5 17.3% 23.9% -9 .1% -18.8% -60 .2% -63. 9%

DXN Holdings B hd MYR DXN KL S E 20.2 0.3 2 1.6% 12.5% -11.3% -4.5% -43 .8% -43. 8%D ibz Inte rnational, Inc. USD DIBZ OTC PK 0 .0 0.0 0 -90. 0% -90. 0% -90.0% -98.0% -98 .0% -98. 0%

D igitalPost Inte ra ctive , Inc. USD DGLP OTC BB 1 .3 0.0 2 20.0% 0.0% -14.3% -64.0% -90 .5% -93. 6%

D igitalT own, Inc. USD DGTW OTC BB 63.6 2.3 5 -21. 7% -6.0% -21.7% -6.0% -23 .0% -61. 5%

Dolphin Digital Media, Inc. USD DPDM OTC BB 26.1 0.5 3 -1.9% -7.0% -18.5% -47.0% NM -53. 1%E olith C o. L td. KR W A041060 KO S E 40.7 760.0 0 21.6% 43.4% 47 .6% 83 .1% -23 .6% -29. 3%

E xtens ions , Inc. USD E XT I OT C PK 14.2 0.1 5 -25. 0% -25. 0% 185.7% 50 .0% 0.0% -85. 1%

F inancia l Media G roup, Inc. USD FNGP OTC BB 0 .3 0.0 0 -27. 3% -55. 6% -73.3% -98.9% -98 .0% -99. 6%

F luid Mus ic Ca nada, Inc. C AD T S X:FMN T S X 15.0 0.3 5 0.0% -12. 5% 12 .9% 0 .0% NM -82. 8%F rogste r Interactive P icture s AG EUR F R G XT R A 27.8 9.0 6 8.5% 39.4% 83 .0% 162.6% 108. 3% -2.5%

Gama nia Digital E ntertainment C o., L td. TW D 6180 GT SM 144.4 32.1 5 0.8% -4.9% 49 .2% 147.3% -1. 4% -13. 0%

GameOn C o L td. J PY 3812 T S E 90.9 92,000.0 0 -0.2% -2.3% -24.7% 31 .6% -17 .1% -43. 7%

GeoS entr ic O yj E UR G EO1V HLS E 46.7 0.0 4 0.0% 33.3% 0 .0% 0 .0% -42 .9% -42. 9%G iant Intera ctive G roup, Inc. USD G A NYS E 1,9 21. 0 8.5 0 11.8% 23.0% 40 .3% 32 .2% -45 .8% -50. 6%

G igaMedia Ltd. USD G IGM Nasda qGS 364.7 6.7 5 -1.0% 8.7% 2 .9% 17 .0% -57 .9% -66. 0%

G ravity C o., L td USD G RV Y Nasda qGM 25.0 0.9 0 -8.2% 40.6% 5 .9% 12 .5% -42 .3% -55. 0%

G ree, Inc. J PY T S E :3632 T S E 1,2 88. 0 5,650.0 0 3.7% 11.2% -1 .7% NM NM -10. 3%GungHo O nline E ntertainment, Inc. J PY 3765 OS E 162.7 139,000.0 0 13.7% 16.4% 41 .1% 36 .8% -52 .6% -68. 0%

HanbitS oft, Inc. KR W A047080 KO S E 77.9 4,770.0 0 14.7% 43.2% 55 .1% 74 .1% 3.7% -32. 0%

IAC /InterActiveC orp. USD I ACI Nasda qGS 2,2 43. 9 15.9 2 -1.7% 3.5% 6 .0% -5.9% -63 .0% -68. 5%

IAS E nergy, Inc. USD I AS C .A OTC BB 17.5 0.2 5 2.0% 455.6% 1090.5% 212.5% 16.3% -28. 6%IdeaE dge, Inc. USD O TC BB :IDAE OTC BB 18.8 0.4 4 46.7% 10.0% -24.1% -76.8% -31 .3% -84. 5%

is eemedia Inc. C AD I E E T S XV 4 .2 0.1 0 -16. 7% 11.1% 11 .1% 66 .7% -64 .9% -71. 4%

J umbuck E ntertainment P ty Ltd. AUD A S X:JMB AS X 16.4 0.4 7 -7.0% -7.0% -3 .1% 9 .4% -20 .5% -29. 0%

J umpT V Inc. C AD T S X:J T V T S X 51.0 0.5 5 0.0% 12.2% 57 .1% -15.4% -28 .6% -57. 0%Ka boose Inc. C AD T S X:KAB T S X 67.4 0.5 9 1.7% 51.3% 55 .3% 13 .5% -51 .2% -54. 6%

K ingsoft Co. Ltd. HKD 3888 S E HK 515.9 3.7 2 4.5% 24.0% 39 .8% 86 .0% 10.4% -13. 7%

Lingo Media Corporation C AD T S XV :LM T S XV 9 .5 0.9 0 -18. 2% 5.9% -8 .2% -30.8% -52 .6% -57. 1%

LiveWorld Inc. USD L VWD OTC PK 3 .1 0.1 0 0.0% -23. 1% 233.3% -23.1% -58 .3% -75. 6%LookSmart, Ltd. USD L OOK Nasda qGM 23.1 1.3 6 19.9% 32.8% 1 .1% -20.3% -71 .2% -71. 8%

Magnitude Information S ys tems Inc. USD MAGY OTC BB 6 .5 0.0 2 0.0% 0.0% -44.0% 15 .4% -14 .3% -50. 0%

Mixi, Inc. J PY 2121 T S E 757.4 483,000.0 0 28.1% 27.1% -5 .7% -20.7% -40 .1% -49. 5%

Mode rn Times G roup Mtg AB S E K MTG B OM 1,668. 7 212.0 0 27.7% 54.2% 55 .6% 37 .2% -52 .2% -53. 4%Moggle , Inc USD MMOG OTC BB 83.5 2.3 0 15.0% 15.0% 53 .3% NM NM 0.0%

MOKO.mobi L imited AUD MKB AS X 4 .4 0.0 7 -12. 9% -18. 7% 85 .0% 54 .2% 80.5% -26. 0%

NEOW IZ Games C orpora tion KR W A095660 KO S E 418.5 58,400.0 0 5.0% 40.0% 153.9% 386.7% 74.1% -20. 4%

NetDragon W ebS oft, Inc. HKD 777 S E HK 313.1 4.5 9 0.4% 9.5% 73 .2% 58 .8% -59 .8% -66. 3%Nete ase.com I nc. USD NT E S Nasda qGS 3,7 22. 3 30.2 5 4.6% 23.0% 65 .5% 47 .0% 30.1% -3.2%

NeXplore Corpora tion USD NXPC OTC PK 41.8 0.7 5 7.1% 25.0% -6 .3% 15 .4% NM -48. 3%

Ngi G roup Inc. J PY 2497 T S E 45.8 36,300.0 0 32.0% 51.9% -25.3% -52.1% -71 .2% -78. 3%

Northgate Te chnologies L imited INR 590057 BS E 31.9 45.7 0 6.3% 40.2% 7 .5% -43.6% -88 .8% -90. 3%

Open T ext Corp. USD O TE X Nasda qGS 1,7 40. 7 33.5 4 -4.5% -3.0% 5 .9% 35 .5% -11 .4% -14. 2%Openwave S ys tems Inc. USD O PWV Nasda qGS 99.1 1.1 9 -1.7% 36.8% 95 .1% 65 .3% -42 .8% -46. 6%

Pe rfect W orld C o. , Ltd. USD P W RD Nasda qGS 885.3 16.7 8 5.3% 18.3% 13 .5% -4.1% -47 .1% -49. 9%

PhotoChannel Network s Inc. C AD T S XV :PN T S XV 43.3 1.5 5 -5.5% 0.0% -8 .8% -16.2% -56 .9% -62. 7%

Quepa sa C orp. USD Q PSA Nasda qCM 11.1 0.8 7 20.8% -20. 2% -49.7% -56.3% -67 .8% -74. 9%OAO RB C Information S ys tems USD R BC I R T S 105.7 0.7 6 52.4% 73.2% 147.8% -49.2% -91 .1% -91. 6%

S handa Interactive E ntertainment L td. USD S NDA Nasda qGS 3,2 81. 8 47.3 0 6.4% 28.6% 68 .6% 84 .8% 32.5% -12. 2%

S hutte rf ly, Inc. USD S F LY Nasda qGS 255.1 10.1 4 -3.5% 9.5% 62 .5% 50 .9% -25 .6% -43. 6%

S K C ommunications Co., Ltd. KR W A066270 KO S E 306.4 10,000.0 0 10.0% 23.2% 41 .8% 115.1% -33 .3% -49. 2%SNAP Inte ra ctive , Inc. USD S T V I OT C BB 7 .0 0.6 5 -7.1% -18. 8% -34.3% 27 .5% -17 .7% -39. 8%

SNM G lobal Holdings USD S NMN OTC PK 0 .0 0.0 1 140. 0% 500.0% 1900.0% -95.0% -99 .8% -99. 9%

S ocia l Media Venures , Inc. USD S MVI OT C PK 0 .0 0.1 5 -83. 0% -87. 5% -85.6% -85.1% NM -97. 0%

S ohu. com Inc. USD S OHU Nasda qGS 1,9 26. 0 50.5 3 8.8% 21.1% 32 .8% -4.7% -35 .0% -44. 8%S ite s earch C orporation USD S T PC OTC BB 28.2 3.5 0 -30. 0% NM NM NM NM -30. 0%

S park Networks , Inc. USD L OV AMEX 46.3 2.2 5 -4.3% -1.7% -9 .3% -26.2% -49 .8% -51. 6%

S pectrumDNA, Inc. USD S PXA OTC BB 9 .7 0.2 0 -4.8% 5.3% 100.0% -20.0% NM -66. 7%

T encent Holdings L td. HKD 700 S E HK 15, 325 .4 65.9 5 0.2% 19.5% 49 .0% 50 .1% 25.6% -8.5%T he Parent C ompany USD K IDS .Q OTC PK 0 .3 0.0 1 -14. 3% -20. 0% -76.0% -98.6% -99 .6% -99. 7%

T he9 L imited USD NC TY Nasda qGS 247.0 9.2 1 -4.0% -33. 4% -42.6% -29.4% -56 .9% -67. 7%

T heS treet.com, Inc. USD T S CM Nasda qGM 71.9 2.3 5 4.0% 15.2% -19.0% -39.4% -68 .5% -75. 2%

T otal S port Online A S NOK TOS O OTC NO 0 .1 0.0 3 -25. 0% -25. 0% -25.0% -40.0% -70 .0% -70. 0%T ree.C om, Inc. USD T R E E Nasda qGM 58.3 5.8 4 2.8% 28.4% 31 .5% 159.6% NM -47. 4%

Unis erve C ommunications Corp. C AD T S XV :US S T S XV 0 .8 0.0 4 -20. 0% -20. 0% 0 .0% -50.0% -88 .6% -91. 1%

United Online Inc. USD UNTD Nasda qGS 390.2 4.7 5 -0.2% 3.3% -23.9% -34.1% -55 .0% -62. 0%

UOMO Media , Inc USD UOMO OTC BB 5 .1 0.0 6 -25. 0% -25. 0% -25.0% -62.5% -82 .9% -92. 5%Va lueC lick Inc. USD V CL K Nasda qGS 840.6 9.6 9 4.4% 19.9% 56 .0% 50 .2% -51 .4% -53. 9%

VO IS , Inc. USD V OIS OTC BB 2 .5 0.3 0 30.4% -25. 0% -25.0% -60.0% NM -94. 6%

W ebzen Inc. USD W ZEN Nasda qGM 33.0 2.7 8 5.7% 50.3% 89 .1% 205.5% 1.8% -37. 5%

W izza rd S of twa re Corpora tion USD W ZE AMEX 25.9 0.5 5 -3.5% 25.0% -23.6% -42.7% -73 .7% -76. 6%W oozyF ly, Inc. USD W ZYF OTC BB 2 .6 0.1 5 0.0% 0.0% NM NM NM -96. 3%

W orlds .com Inc. USD WDDD OTC BB 8 .9 0.1 7 0.0% 3.0% 6 .3% -5.6% -39 .3% -57. 5%

W ynds torm C orporation USD W YND OTC BB 1 .6 0.0 9 -47. 1% -25. 0% -25.0% -55.0% NM -89. 4%

XING AG EUR O 1BC XT R A 199.0 29.7 7 10.3% 5.6% -4 .0% 10 .3% -19 .0% -36. 2%YedangOnline Corp. KR W A052770 KO S E 112.7 9,670.0 0 1.7% 11.4% 36 .4% 56 .0% -19 .4% -22. 9%

Ynk Korea Inc. KR W A023770 KO S E 8 .6 4,700.0 0 5.9% 22.2% 19 .0% -38.0% -65 .3% -69. 5%

ZipLocal Inc. C AD T S XV :ZIP T S XV 0 .3 0.0 1 0.0% -66. 7% -75.0% -50.0% -96 .4% -97. 1%

H igh 140. 0% 500.0% 1900.0% 386.7% 108. 3% 0.0%

Low -90. 0% -90. 0% -90.0% -98.9% -99 .8% -99. 9%

Average 451.8 2.5% 21.5% 52.3% 13.2% -36.9% -57.0%

Median 0.1% 11.1% 6 .1% -3.9% -48 .4% -57. 1%

Figure 19. Price Performance Source. Capital IQ

Comparable C ompany Analys is > Web 2.0V aluation Multiples

C ompany Name Sector Country

Primary

E xchange Ticker

USD Market

Cap ($m)

TEV/LTM

R evenue

TEV/ NTM

R evenue

TEV/LTM

E BITDA

TE V/NTM

E BITDA P/LTM EPS P/NTM EPS P/TangBV

Acce le rize New Media, Inc. D irect Marketing Unite d S tates OT C BB AC LZ 13. 4 4.7 x - - - - - -

Actoz S of t C o., L td. Gaming S outh Kore a KOS E A052790 93. 2 0.9 x - 4.7 x - 15 .6x - 1 .8x

AQ Inte ractive , Inc. Gaming J a pan T S E 3838 26. 2 - - - - - - 0 .4xAs socia ted Media Holdings Inc. Mobile Unite d S tates OT C PK ASMH 0. 1 8.1 x - - - - - -

B igstring Corp. Ins ta nt Mes s aging Unite d S tates OT C BB BSG C 0. 7 23.6 x - - - - - -

Be tawave Corpora tion Media Unite d S tates OT C BB B WAV 3. 2 - - - - - - 0 .3x

Be yond Commerce, Inc. S ocia l Ne tworking Unite d S tates OT C BB BYO C 61. 6 35.5 x - - - - - -B r ight T hings plc S ocia l Ne tworking Unite d K ingdom AIM AIM:BGT 5. 0 20.6 x - - - - - -

B roa dW ebAs ia Inc. S ocia l Ne tworking Unite d S tates OT C PK B WB A 38. 2 - - - - - - -

C DC C orp. Gaming Hong K ong Nasda qGS C HIN .A 126. 3 0.4 x 0.5x 9.7 x 6.5x - 3 4.7 x -

C hina Gatewa y C orpora tion Mobile Unite d S tates OT C BB CGWY 0. 0 0.0 x - - - - - -C hine se Gamer International Gaming T a iwan GT SM GT SM:3083 540. 7 10.6 x - 21.0 x - 28 .2x - 9 .5x

C ornerW orld C orporation C ontent Unite d S tates OT C BB CWR L 6. 4 6.0 x - - - - - -

C yberplex Inc. Advertis ing C anada T S X T SX:C X 53. 8 1.1 x 0.8x 13.3 x 8.6x 11 .3x 1 1.2 x 1 1.6x

DADA S pA S ocia l Ne tworking Italy CM CM:DA 123. 7 0.8 x - 4.7 x - 7. 4x - -

DXN Holdings B hd S ocia l Ne tworking Malays ia KL S E DXN 20. 2 0.5 x - 3.9 x - 3. 9x - 0 .4xDibz Inte rnational, Inc. S NS A pps Unite d S tates OT C PK DIBZ 0. 0 - - - - - - -

D igitalPost Inte ra ctive , Inc. C ontent Unite d S tates OT C BB DGL P 1. 3 5.6 x - - - - - -

D igitalT own, Inc. S ocia l Ne tworking Unite d S tates OT C BB DGTW 63. 6 - - - - - - -

Dolphin Digital Media, Inc. S ocia l Ne tworking Unite d S tates OT C BB DP DM 26. 1 - - - - - - -E olith C o. L td. Gaming S outh Kore a KOS E A041060 40. 7 2.2 x - - - - - -

E xte ns ions , Inc. C ontent Unite d S tates OT C PK E XT I 14. 2 - - - - - - -

F inancia l Media G roup, Inc. D irect Marketing Unite d S tates OT C BB FNGP 0. 3 - - - - - - -

F luid Mus ic Ca nada, Inc. Media Unite d S tates T S X T S X:FMN 15. 0 0.0 x 0.0x - - - - 1 .2xF rogs te r Interactive P icture s AG Gaming G ermany XT RA F RG 27. 8 5.2 x - - - - - 2 .6x

Gama nia D igital E ntertainment C o. , L td. Gaming T a iwan GT SM 6180 144. 4 1.1 x - 7.8 x - 18 .8x - 2 .0x

GameOn C o L td. Gaming J a pan T S E 3812 90. 9 0.4 x - 1.7 x - 9. 2x - 1 .2x

GeoS entr ic O yj Mobile F inland HLSE GEO1V 46. 7 6.9 x - - - - - 4 .9xG iant Intera ctive G roup, Inc. Gaming C hina NYS E G A 1,9 21. 0 - - - - 1. 9x 1 3.9 x 0 .4x

G igaMedia Ltd. Gaming T a iwan Nasda qGS GIGM 364. 7 1.5 x 1.5x 6.3 x 6.4x 11 .6x 1 0.6 x 3 .3x

G ravity C o. , L td Gaming S outh Kore a Nasda qGM GR VY 25. 0 - - - - - - -

G ree, Inc. S ocia l Ne tworking J a pan T S E T S E :3 632 1,2 88. 0 40.8 x - - - - - 1 9.8xGungHo O nline E ntertainment, Inc. Media J a pan OS E 3765 162. 7 1.2 x - 6.9 x - - - -

HanbitS of t, Inc. Gaming S outh Kore a KOS E A047080 77. 9 1.2 x - - - - - 2 .6x

IAC /InterActiveC orp. Media Unite d S tates Nasda qGS IAC I 2,2 43. 9 0.3 x 0.4x 7.6 x 2.9x 16 .7x 2 7.4 x 1 .1x

IAS E nergy, Inc. V ideo C anada OT C BB IA S C .A 17. 5 - - - - - - -IdeaE dge, Inc. S ocia l Ne tworking Unite d S tates OT C BB OT C BB :IDA E 18. 8 - - - - - - 1 3.7x

iseemedia Inc. C ontent C anada T S XV IE E 4. 2 2.1 x - - - - - 2 .4x

J umbuck E ntertainment P ty Ltd. S ocia l Ne tworking A us tralia AS X AS X:JMB 16. 4 0.9 x - 2.5 x - 7. 4x - 1 .9x

J umpT V Inc. V ideo C anada T S X TS X:J T V 51. 0 2.6 x - - - - - 2 .8xKa boose Inc. C ontent C anada T S X TS X:KAB 67. 4 1.1 x 1.0x 11.2 x 6.3x - - -

K ingsoft Co . Ltd. Gaming C hina S E HK 3888 515. 9 3.7 x - 9.5 x - 13 .4x - 3 .1x

Lingo Media Corporation Le arning C anada T S XV TS XV :LM 9. 5 3.1 x - - - - - -

LiveWorld Inc. S ocia l Ne tworking Unite d S tates OT C PK LVWD 3. 1 0.2 x - - - - - 1 .4xLookSmart, Ltd. D irect Marketing Unite d S tates Nasda qGM LOOK 23. 1 - - - - - - 0 .8x

Magnitude Information S ys tems Inc. S ocia l Ne tworking Unite d S tates OT C BB MAGY 6. 5 - - - - - - -

Mixi, Inc. S ocia l Ne tworking J a pan T S E 2121 757. 4 5.4 x - 14.3 x - 36 .2x - 5 .9x

Mode rn Times G roup Mtg AB Media S weden OM MTG B 1,6 68. 7 1.4 x 1.3x 8.5 x 1 0.9 x 4. 9x 1 2.4 x -Moggle , Inc Gaming Unite d S tates OT C BB MMO G 83. 5 - - - - - - -

MOKO.mobi L imited S ocia l Ne tworking A us tralia AS X MKB 4. 4 3.3 x - - - - - 3 .8x

NEOW IZ Games C orpora tion Gaming S outh Kore a KOS E A095660 418. 5 3.0 x - 11.3 x - 23 .0x - 1 3.6x

NetDragon W ebS oft , Inc. Gaming C hina S E HK 777 313. 1 1.9 x - 4.2 x - 10 .3x - 1 .7xNete ase.com I nc. Gaming C hina Nasda qGS NT E S 3,7 22. 3 - - - - 2. 5x 1 5.1 x 0 .7x

NeXplore Corpora tion C ontent Unite d S tates OT C PK NXPC 41. 8 - - - - - - -

Ngi G roup Inc. Media J a pan T S E 2497 45. 8 - - - - 13 .4x - 0 .7x

Northgate Te chnologies L imited Direct Marketing India BS E 590057 31. 9 0.2 x - 1.3 x - 2. 1x - -

Open T e xt Corp. C ollaboration C anada Nasda qGS O TE X 1,7 40. 7 2.4 x 2.2x 9.6 x 8.4x 35 .6x 1 4.0 x -Openwave S ys tems Inc. Mobile Unite d S tates Nasda qGS OPWV 99. 1 0.1 x 0.1x - 1.3x - 3 9.7 x 1 .3x

Pe rf ect W orld C o., Ltd. Gaming C hina Nasda qGS PWR D 885. 3 - - - - 1. 5x 8.2x 0 .5x

PhotoChannel Network s Inc. D igital Imaging C anada T S XV T S XV :PN 43. 3 2.6 x 1.8x - 5.5x - 2 0.1 x 9 .5x

Quepa s a C orp. S ocia l Ne tworking Unite d S tates Nasda qCM QP SA 11. 1 - - - - - - 8 .3xOAO RB C Information S ys tems Media R us s ia R TS R BCI 1 05. 7 0.0 x - 0.2 x - - - -

S handa Interactive E ntertainment L td. Gaming C hina Nasda qGS SNDA 3,2 81. 8 0.1 x 0.7x 0.3 x 1.6x 2. 7x 1 5.2 x 1 .3x

S hutte rf ly, Inc. D igital Imaging Unite d S tates Nasda qGS S FL Y 255. 1 0.8 x 0.8x 5.9 x 5.3x 57 .3x - 1 .5x

S K C ommunications Co., Ltd. S earch S outh Kore a KOS E A066270 306. 4 2.0 x - 21.1 x - - - -S NAP Inte ra ctive , Inc. Dating Unite d S tates OT C BB S TV I 7. 0 1.8 x - 5.8 x - 9. 2x - 4 .6x

S NM Global Holdings Media Unite d S tates OT C PK SNMN 0. 0 1.1 x - - - - - -

S ocia l Media Venures , Inc. S ocia l Ne tworking Unite d S tates OT C PK SMV I 0. 0 0.0 x - - - - - -

S ohu. com Inc. Gaming C hina Nasda qGS SOHU 1,9 26. 0 3.8 x 3.2x 9.0 x 7.6x 12 .5x 1 2.5 x 5 .9xS ite search C orporation S ocia l Ne tworking Unite d S tates OT C BB ST PC 28. 2 - - - - - - 4 0.1x

S park Networks , Inc. S ocia l Ne tworking Unite d S tates AMEX L OV 46. 3 0.8 x - 3.8 x - 11 .1x - -

S pectrumDNA, Inc. Media Unite d S tates OT C BB SPXA 9. 7 - - - - - - 1 4.7x

T encent Holdings L td. Porta l C hina S E HK 700 15,3 25. 4 15.9 x - 32.5 x - 43 .6x - 1 7.8xT he Parent C ompany Media Unite d S tates OT C PK K IDS .Q 0. 3 0.2 x - - - - - -

T he 9 L imited Gaming C hina Nasda qGS NC T Y 247. 0 - - - - 0. 7x 1 0.1 x 0 .1x

T he S treet.com, Inc. Media Unite d S tates Nasda qGM T S CM 71. 9 - - - - 75 .7x - 0 .7x

T otal S port Online A S Media Norway OT C NO TOSO 0. 1 4.6 x - - - - - -T ree.C om, Inc. Porta l Unite d S tates Nasda qGM TR E E 58. 3 0.3 x 0.3x - - - - 0 .9x

Unis erve C ommunications Corp. S ocia l Ne tworking C anada T S XV T S XV :US S 0. 8 0.1 x - 29.5 x - - - -

United Online Inc. Media Unite d S tates Nasda qGS UNTD 390. 2 1.0 x 0.7x 4.5 x 2.9x - 6.6x -

UOMO Media , Inc Media C anada OT C BB UOMO 5. 1 8.6 x - - - - - -Va lueC lick Inc. Media Unite d S tates Nasda qGS VC LK 840. 6 1.1 x 1.3x 6.3 x 5.5x - 1 6.4 x 8 .2x

VO IS , Inc. S ocia l Ne tworking Unite d S tates OT C BB VOIS 2. 5 - - - - - - 5 .6x

W ebzen Inc. Gaming S outh Kore a Nasda qGM WZEN 33. 0 - - - - - - 0 .0x

W izza rd S of twa re Corpora tion Podcas ting Unite d S tates AMEX WZE 25. 9 4.3 x - - - - - -W oozyF ly, Inc. S ocia l Ne tworking Unite d S tates OT C BB W ZYF 2. 6 - - - - - - -

W orlds .com Inc. C ontent Unite d S tates OT C BB WDDD 8. 9 - - - - 3. 3x - -

W yndstorm C orporation C ontent Unite d S tates OT C BB WYND 1. 6 - - - - - - -

XING AG S ocia l Ne tworking G ermany XT RA O 1BC 1 99. 0 3.1 x - 9.8 x - 21 .2x - 5 .5xYedangOnline Corp. Gaming S outh Kore a KOS E A052770 112. 7 2.2 x - 9.8 x - 12 .9x - 6 .0x

Ynk Korea Inc. Gaming S outh Kore a KOS E A023770 8. 6 0.6 x - - - - - -

ZipLocal Inc. D irectory C anada T S XV T S XV :ZIP 0. 3 0.6 x - - - - - -

H igh 15,3 25. 4 40.8 x 3.2x 32.5 x 1 0.9 x 75 .7x 3 9.7 x 4 0.1x

Low 0. 0 0.0 x 0.0x 0.2 x 1.3x 0. 7x 6.6x 0 .0x

Average 451.8 4.2x 1.0x 9.0x 5.7x 16.4x 16.7x 5.2x

Median 39. 4 1.5 x 0.8x 7.6 x 5.9x 11 .4x 1 4.0 x 2 .5x

Figure 20. Valuation Comparison Source. Capital IQ


Summary by Country

C ompany Name USD Market Cap ($m) Avg USD Market C ap ($m) USD LTM Total R ev ($m) USD LTM Total E B ITDA ($m) EB ITDA %

United S tates 41 C hina 28, 137.7 China 3,126. 4 United S ta tes 3, 744. 3 C hina 1,655. 9 C hina 48. 4%

C anada 11 United S tates 4, 524.4 S weden 1,668. 7 C hina 3, 353. 2 S weden 253. 7 Aus tra l ia 37. 2%

C hina 9 J apan 2, 370.8 Japan 395. 1 S weden 1, 572. 8 United S ta tes 240. 1 T aiwan 29. 7%

S outh K orea 9 C anada 1, 993.6 Ta iwan 349. 9 C anada 944. 7 C anada 186. 1 J apan 26. 1%

J apan 6 S weden 1, 668.7 Canada 181. 2 S outh K orea 552. 0 J apan 132. 4 India 17. 6%

T a iwan 3 S outh K orea 1, 115.9 Hong K ong 126. 3 J apan 503. 0 T a iwan 85. 5 S weden 16. 1%

A ustra lia 2 T a iwan 1, 049.8 S outh K orea 124. 0 Hong K ong 428. 1 S outh K orea 63. 0 I ta ly 16. 0%

Germany 2 Germany 226.7 Ita ly 123. 7 T aiwan 348. 0 I ta ly 35. 3 Ma lays ia 13. 3%

Norway 1 Hong K ong 126.3 G ermany 113. 4 I ta ly 221. 2 India 23. 8 R uss ia 13. 1%

Hong K ong 1 I ta ly 123.7 United S tates 110. 4 R uss ia 141. 0 Hong K ong 18. 8 S outh K orea 4.7%

F inland 1 R uss ia 105.7 Rus sia 105. 7 India 135. 1 R uss ia 18. 4 Hong K ong 4.4%

I ta ly 1 F inland 46.7 Finland 46. 7 Ma lays ia 76. 7 G ermany 11. 4 United S ta tes -11.0%

United K ingdom 1 India 31.9 India 31. 9 G ermany 50. 8 Malays ia 10. 2 G ermany -14.3%

India 1 Aus tra lia 20.8 Malay sia 20. 2 Aus tra l ia 13. 8 Aus tra lia 2. 6 C anada -18.0%

S weden 1 Malays ia 20.2 Austra lia 10. 4 F inland 5. 7 Norway -1. 0 Norway -50.6%

R us sia 1 United K ingdom 5.0 United K ingdom 5. 0 Norway 2. 0 United K ingdom -1. 6 United K ingdom #DIV /0!

Ma lays ia 1 Norway 0.1 Norway 0. 1 United K ingdom 0. 2 F inland -12. 8 F inland #DIV /0!

Grand Total 92 Grand Total 41,568.1 Grand Total 451.8 Grand Total 12,092.7 Grand Total 2,721.9 Grand Total 6.9%

Figure 21. Comparison by Country Source. Capital IQ


Summary by Exc hange

Company Name USD Market Cap ($m) Avg USD Market C ap ($m) USD LTM Total R ev ($m) USD LTM Total EB ITDA ($m) EB ITDA %

OT C B B 22 S E HK 16, 154.3 S E HK 5,384. 8 OM 1, 572. 8 NasdaqG S 1,522. 8 NY S E 61. 9%

Nas daqG S 13 NasdaqG S 16, 123.0 NY S E 1,921. 0 NasdaqG S 492. 7 S E HK 598. 8 S E HK 44. 4%

OT C P K 9 T S E 2, 208.2 OM 1,668. 7 S E HK 418. 5 OM 253. 7 AS X 37. 2%

K OS E 7 NY S E 1, 921.0 Nas daqG S 1,240. 2 NY S E 233. 6 NY S E 144. 6 G T S M 32. 5%

T S E 5 OM 1, 668.7 TS E 441. 6 C M 221. 2 T S E 111. 9 T S E 27. 7%

Nas daqGM 5 KOS E 1, 057.9 G TS M 342. 5 R TS 141. 0 K OS E 60. 2 NasdaqG S 26. 8%

T S XV 5 G T S M 685.1 OS E 162. 7 B S E 135. 1 G T S M 39. 4 OS E 17. 8%

T S X 4 OT CB B 368.8 K OS E 151. 1 OS E 114. 9 C M 35. 3 B S E 17. 6%

S E HK 3 XT RA 226.7 CM 123. 7 NasdaqGM 84. 6 B S E 23. 8 OM 16. 1%

AME X 2 NasdaqGM 211.3 XT R A 113. 4 G T S M 78. 8 OS E 20. 5 C M 16. 0%

XT RA 2 T S X 187.1 R T S 105. 7 T S E 77. 6 R TS 18. 4 K LS E 13. 3%

A S X 2 OS E 162.7 TS X 46. 8 K LS E 76. 7 XTR A 11. 4 R TS 13. 1%

GT S M 2 C M 123.7 HLS E 46. 7 K OS E 70. 6 K LS E 10. 2 K OS E 6.1%

OT C NO 1 R TS 105.7 Nas daqGM 42. 3 T S X 32. 8 AME X 6. 3 NasdaqGM -0. 9%

HLS E 1 OT CP K 97.7 AME X 36. 1 AME X 31. 7 AS X 2. 6 XT RA -14.3%

NY S E 1 AME X 72.2 B S E 31. 9 XT R A 25. 4 OT CNO -1. 0 T S X -14.8%

CM 1 T S XV 58.0 K LS E 20. 2 OT CP K 21. 0 AIM -1. 6 T S XV -15.6%

B S E 1 HLS E 46.7 OTC B B 16. 8 T S XV 9. 6 T S X -6. 4 OT CPK -27.9%

Nas daqCM 1 B S E 31.9 TS XV 11. 6 AS X 6. 9 T S XV -9. 8 OT CBB -31.8%

OS E 1 AS X 20.8 Nas daqCM 11. 1 H LS E 5. 7 NasdaqC M -11. 4 AME X -38.3%

A IM 1 K LS E 20.2 OTC P K 10. 9 OT CB B 2. 0 H LS E -12. 8 OT CNO -50.6%

OM 1 NasdaqC M 11.1 AS X 10. 4 OT CNO 2. 0 NasdaqGM -16. 1 AIM #DIV /0!

R TS 1 AIM 5.0 AIM 5. 0 AIM 0. 2 OT CPK -26. 5 NasdaqC M #DIV /0!

K LS E 1 OT CNO 0.1 OTC NO 0. 1 NasdaqC M 0. 1 OT CBB -52. 5 H LS E #DIV /0!

Grand Total 92 Grand Total 41,568.1 Grand Total 451.8 Grand Total 145.7 Grand Total 2,721.9 Grand Total 6.9%

Figure 22. Comparison by Exchange Source. Capital IQ

Financing - Last Three Months (US$ m)Month Company Name Country Angel/S eed Debt financing PIPE Series A S eries B S eries C S eries D Series E Sereis A Grand Total

Feb-09 Twitter US A 35.0 35.0

S ynthas ite S outh Africa 20.0 20.0

Tremor Media US A 18.0 18.0

Offerpal Media US A 15.0 15.0

Imagini UK 13.5 13.5

Emergent Game Technologies US A 12.5 12.5

Outbrain Is rael 12.0 12.0

Tvtrip F rance 9.0 9.0

Tongxue China 6.0 6.0

Oodle US A 5.6 5.6

TextDigger US A 4.3 4.3

OneSpot US A 4.2 4.2

Mixpo Canada 4.0 4.0

FetchDog US A 4.0 4.0

Virtual Fairground Netherlands 4.0 4.0

7 B illion People US A 3.0 3.0

FamilyL ink.com US A 2.9 2.9

Whis tleBox US A 2.3 2.3

Mendeley UK 2.0 2.0

Outright US A 2.0 2.0

Tvinc i Is rael 1.6 1.6

Filtrbox US A 1.4 1.4

MMO Life Netherlands 1.3 1.3

Cake F inancial US A 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 Kaixin001.com China 20.0 20.0

Vidyo US A 15.0 15.0

Buzznet US A 12.5 12.5

LendingC lub US A 12.0 12.0

S endMe Inc . US A 12.0 12.0

Auditude US A 10.5 10.5

Glam Media US A 10.0 10.0

S uperSecret US A 10.0 10.0

GoViral UK 8.8 8.8

Greys tripe US A 5.5 5.5

OMGPOP US A 5.0 5.0

Apture US A 4.1 4.1

S imulmedia US A 4.0 4.0

Tynt Canada 3.9 3.9

AnySource Media US A 3.2 3.2

P ixazza US A 3.1 3.1

B it.ly US A 2.0 2.0

Hunch US A 2.0 2.0

S ports Compos ite DE US A 2.0 2.0

AdultSpace US A 1.3 1.3

Myngle Netherlands 1.3 1.3

33Across US A 0.8 0.8

Three Melons Argentina 0.6 0.6

Mar-09 Total 1.3 1.3 0.6 41.1 50.3 43.0 12.0 10.0 159.5

Apr-09 Collec tive Media US A 20.0 20.0

GOOM Radio France 16.0 16.0

The R ubicon Project US A 8.0 5.0 13.0

Cellufun US A 10.0 10.0

S canScout US A 8.1 8.1

Batanga USA 7.5 7.5

DoubleTwis t US A 5.0 5.0

S oc ialtext US A 4.5 4.5

SoundCloud Germany 3.3 3.3

TubeMogul US A 3.0 3.0

Tribal Nova Canada 2.5 2.5

Tripbase USA 2.0 2.0

S oc ialcas t US A 1.4 1.4

S can & Target F rance 1.3 1.3

Foodista USA 0.6 0.6

Apr-09 Total 9.4 8.0 24.3 42.5 4.1 12.0 2.0 102.3

Grand Total 24.0 9.3 0.6 90.1 169.1 105.7 24.0 22.5 2.0 447.3

Figure 23. Financing, Last Three Months Source. Company reports

Company Des c riptions - C urrent Month C apital Market Ac tivity

Company HQ Webs ite Des cription

B atanga United S ta tes www. batanga .com B atanga, Inc . opera tes as a media and enterta inment company for His panic s. I t offers online entertainment, such as Internet radio, mus ic

videos , artist interviews, and Latin-centric enterta inment content, a s well a s s ocia l network ing. T he company publishes magaz ines, a s well as

promotes and executes cus tom and s ponsor driven music -oriented events . I t a lso owns ad network ta rgeting His panic s. T he company was

founded in 1999 and is bas ed in Coral G ables , Florida with an additional office in New York. As of December 2, 2005, B a tanga , I nc . operates

as a subs idiary of Hi spanic Media , Inc.

C ellufun, LL C United S ta tes www. cellufun. com Cellufun, LLC operates as an ad s ponso red mobile gaming portal. The company’ s portal provides free enterta inment content, a s well a s

cas ua l, connected, and multiplayer games for ex isting and next-generation W eb-enabled mobile phones . It a l so offers free s ingle-player

games, as well as multi-player vers ions on a s ubs cription bas is . The company enables subs cribers to persona liz e their gaming profile; save

scores ; create teams; partic ipate in tournaments ; and share information rela ted to tips , trick s, and bragging rights . C ellufun was founded in

2005 and is bas ed in New Y ork, N ew Y ork.

C ollective Media, Inc . United S ta tes www. collective-media . com Collective Media , Inc. opera tes as a n online advertising network that specializ es in audience ta rgeting and optimiz ation s olutions for

publishers and advertis ers in the United S ta tes. I t provides context, behav ior, re-ta rgeting, demographic, and geographic ta rgeting; and

dashboard, a reporting interface that pres ents and manipula tes ad performance data generated by campa igns. T he company a ls o offers a

network of online news s ites , a s well as enterta inment, s ports , and health si tes . In addition, it provides brand advertis ing and direct marketing

services . T he company was founded in 2005 and is bas ed in New Y ork, New Y ork .

doubleTwis t Corporation United S ta tes www. doubletwis t. com doubleTwist Corporation des igns and develops entertai nment s oftware applica tions . T he company applica tions s hares and s ynchroniz es

pictures , video, and audio to media dev ices . I t offers doubleT wis t desk top, an applica tion that enables c lients to trans fer, share, and sync

persona l media ; and Twis t me! , a network applica tion that a llows us ers to share photos, v ideo, and audio files from the c lient’s prof ile pages.

doubleTwist Corporation was founded in 2007 and is bas ed in S an F ranc isco, Ca li fornia with an additiona l office in Os lo, Norway.

F oodis ta United S ta tes www. foodista .com Foodis ta is a W iki pedia for rec ipes, food, and cooking. R eci pes are contributed and edited in a wik i in an a ttempt to avoid numerous repeats

of the s ame rec ipe. The s ite takes a structured data approach aki n to IMDB , where every ingredient, cooking technique, utens il, and dis h

links to every other mention on the s ite.Go On Media F rance www. goomradio.com Go On Media operates digita l radio sta tions . I t broadcasts music , weather, news , and music news through I nternet. In addition, the company

operates a community for interaction between the c reators of radi os. T he company was founded in 2007 and is based in S aint C loud,

F rance.Mixercas t, Inc . United S ta tes www.mixercast.com Mixercas t, I nc . provides s oc ial marketing application pla tform that enables content pub lishers and advertis ers to reach audiences across the

soc ia l W eb. It offers MC ast P latform that includes a s et of tools and s ervi ces to c reate, distribute, monetiz e, and track va rious types of social

ma rk eting applica tions, inc luding widgets, mas h-ups, F acebook and MyS pace apps, and portab le content or brand experiences. M ixercast,

Inc . was formerly known as Nanocast Labs, I nc . The company was founded in 2005 and is bas ed in S an Mateo, California .

S can & Target F rance www. s canandta rget. com S can & Target provides s oftware as a serv ice solution for the ana lys is and filtering of tex t user generated content. I t offers its ana lys is

solution for va rious applica tions, s uch as moderating and monetiz ing us er generated content, routing and qua lity control, validating ads and

listings , and populating cus tomer relations hip management databases . T he company provides its s olution in various platforms , such as

Internet, mobile, and interactive televis ion for pub lishers of onl ine communities, moderating s ervice providers , and suppliers of technology

solutions . S can & Ta rget was founded in 2007 and is bas ed in P uteaux, F rance.

S canS cout, Inc. United S ta tes www. s cans cout. com S canS cout, Inc . operates as an online video advertising network. I t s erves publis hers , advertise rs , and ad network s . The company was

founded in 2005 and is bas ed in B oston, Mass achus etts with additiona l offices in New York and Los Angeles .

S ocialcas t United S ta tes www. s ocialcast. com S ocia lcas t provides soc ial network ing pla tforms and s olutions for both consumer-fac ing clients and enterpris e cus tomers . The company was

founded in 2005 and is bas ed in Irv ine, Cal ifornia .

S ocialtext Incorporated United S ta tes www. s ocialtext.com S ocia ltext Incorporated develops enterpris e s oc ia l s oftware. T he company focus es on offering collaboration platform that a llows

organizations to collaborate. It offers P eople, which enables users to integra te s oc ial network ing with enterprise collaboration; W eblog that

supports collaborative and ongoing conversa tions among colleagues ; W orks pace, an enterpris e wiki for sea rching information and people;

and S igna ls that amplifies, cla rifies , and complements other collaboration ac tiv ities , a s well a s prov ides a medium for information s haring.

The company a ls o provides Dashboard, which aggregates content from S oc ialtex t wik i pages , the W eb, and enterprise systems; and

S ocia lCalc s preadsheets that inc lude information from other spreads heets or works pace pages . The company was founded in 2002 and is

based in P a lo Alto, C a lifornia .S oundCloud L td. Germany s oundc loud.com S oundCloud L td. provides an online audio pla tform for recei ving, s ending, and distributing music for a rtis ts , record labels , and other music

profes s iona ls. T he company was founded in 2007 and is based in B erlin, G ermany .

R ubicon Project, Inc . United S ta tes www. rubiconproject.com R ubicon P roject, I nc. , an advertis ing technology company , provides online advertis ing solutions to W eb publishers and ad networks . I t a lso

offers ad network optimiz ation serv ices , a s well a s ad qua lity protection programs . In addition, the company prov ides solutions to s top

unwanted ads in track s by protecting W eb publis hers. T he company was founded in 1998 and is based in Los Angeles, Ca lifornia .

T ripbase United S ta tes www. tripbase. com Tripbas e is a travel webs ite that gives you unbiased recommendations about where to go on your next trip based on what you lik e.

T ribal Nova, Inc. C anada www. triba lnova. com/en/ Triba l Nova , I nc. develops and mark ets Internet s ites , online games , interactive televis ion programs , and cellula r telephony content for

children. It produces an array of games ranging from educationa l pres chooler online games , s uch as Ca i llou to multiplayer online role playi ng

game for teens, such as Magi Nation. The company operates at the internationa l level in E urope and North America . T riba l Nova , Inc . was

founded in 2004 and is bas ed in Montrea l, Canada.

TubeMogul, Inc. United S ta tes www. tubemogul. com TubeMogul, Inc. operates as an online video ana lytics and dis tribution company worldwide. It focuses on prov iding v ideo publis hing tools .

The company provides a s ingle point for deploy ing uploads to the video s haring s ites , and analytics on who, what, and how v ideos are being

viewed. It serves content producers, media companies , ad age ncies , digita l consultants, record labe ls , f ilm s tudios , politicians , consumer

products organiz a tions , and corporations. The company was founded in 2006 and is based in B erkeley , California .

Figure 24. Company Descriptions Source. Company reports, Capital IQ, Crunchbase

RELEVANT DISCLOSURES APPLICABLE TO: NONE

L IST OF D IS CLOS URE TE RMS :

1. None applicable.

ANALYST CERTIFICATION

Each analyst of Research Capital Corporation whose name appears in this report hereby certif ies 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

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Economy & Finance

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