09-09-09 web 2.0 weekly

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SOFTWARE & SERVICES 9 SEPTEMBER 2

W E B 2 . O W E E K L Y DAVID SHORE, CFA, MBA 416.860.6david.shore@researchcapital.

SKYPE SALE LARGEST TRANSACTION IN 2009

EBAY SELLS SKYPE; SHANDA TO LIST G AMES UNITAlmost four years to the day of announcing the acquisit ion of Skype, eBay announced last week that it had sold 65%of its Skype unit to a group of private equity investors, led by Silver Lake Partners, for $1.9 bil l ion in cash and a $125mill ion note. eBay had acquired Skype for over $4 bil l ion in September 2005. Following the successful IPO of SohusChangyou unit in April (+155% since IPO), Shanda announced the proposed $800 mill ion IPO of its Shanda Gamesunit. Shanda Games generates the vast majority of its revenue from the sale of virtual goods and is highly profitable(31% net profit margin 1H/09).

Slow start to financing activity for new school year: With only f ive financing transactions to start September, thelargest transaction thus far is the $5 mill ion financing for YuMe (Advertising). The total for September so far is just$12.2 mill ion, averaging $2.4 mill ion per f inancing. Total capital raised in August was $208.5 mill ion, averaging $7.7mill ion (27 deals), July on 35 transactions was $191.4 mill ion, averaging $5.5 mill ion, and June (42 deals) was $204.7

mill ion (averaging $4.9 mill ion).

Financing Activity Last Twelve Months

7.0

9.7

7.0

6.5

7.1

6.66.2

14.6

4.9

5.5

7.7

2.4

16.2

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

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

(US$m)

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

(US$m)

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

A mixed price performance week: Twenty-seven of the companies in our universe had positive stock priceperformances over the past week (for stocks with prices greater than $1) (Figure 6), with 21 companies showingnegative returns on the week. DigitalTown (OTCBB:DGTW) led the group with a 25.0% return, while Cyberplex(TSX:CX) had the worst return, dropping 14.8% in the week.

This report has been created by Analysts that are employed by Research Capital Corporation, a Canadian Investment DealFor further disclosures, please see last page of this report.

www.researchcapita l .com

Toronto 416.860.7600 Montreal 514.399.1500 Vancouver 604.662.1800 Calgary 403.265.7400 Regina 306.566.75

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HE WEB 2.0 UN IVERSE

Ninety-one public Web 2.0 companies: Our Web 2.0 universe contains 91 companies, with a combined market ca~$67 bil l ion (Figure 1). The median market cap for the group is ~$66 mill ion, with average trail ing revenue of ~$mill ion (median $58 mill ion). The companies are also generally profitable, with a median EBITDA margin of 13.1%. Ovaluation basis, the overall average is 6.0x trail ing revenue (median 2.1x) and 12.7x trail ing EBITDA (median 10.

Nineteen of the companies have more than 500 employees.Comparable Company Analysis > Web 2.0

ompany Name L TM as of Ticker E xchange

Trading

C ur ren cy H Q

Current

Price

USD Market

Cap ($m)

USD LTM Total

Rev ($m)

USD LTM Total

EBITDA ($m)

EBITDA

%

TEV/LTM

Revenue

TEV/LTM

E BITDA E mplccelerize New Media , Inc. 6/30/2009 AC LZ OT C B B U S D United S ta tes 0. 57 15. 8 4. 4 (3 .7) -83.3% 4. 7x - 1

ctoz S oft C o. , L td. 6/30/2009 A052790 K OS E K R W S outh K orea 17 ,850 1 24. 8 105.3 25.1 23. 8% 0. 9x 3. 7x N

Q Interactive, Inc. 6/30/2009 3838 T S E J P Y J a pan 51,000 29. 8 63. 5 (1 .9) -2 .9% 0. 1x - N

s sociated Media Holdings Inc. 6/30/2007 AS MH OT C P K U S D United S ta tes 0. 01 0.6 0. 1 (2 .3) NM 15.6x -

gs tring C orp. 6/30/2009 B S G C OT C B B U S D United S ta tes 0. 02 1.3 0. 1 (1 .5) NM 37.5x -

eta wave C orporation 6/30/2009 B W AV OT C B B U S D United S ta tes 0. 07 2.0 9. 4 (12.6) NM - - 5

eyond C ommerce, Inc. 6/30/2009 B Y O C OT C B B U S D United S ta tes 0. 21 9.7 11. 7 (12.8) NM 1. 3x - 1

right T hings plc 9/30/2008 AIM: B G T AIM G B P United K ingdom 0. 01 6.1 0. 3 (1 .8) NM 22.4x -

roa dW ebAs ia Inc. 9/30/2008 B W B A OT C P K U S D United S ta tes 0. 23 19. 5 0. 0 (4 .6) NM - - 4

DC C orp. 6/30/2009 C HIN. A Nas daqG S U S D Hong K ong 2. 38 252. 2 361.6 25.1 6.9% 0. 7x 9. 9x 2,

hangyou. com L imited 6/30/2009 C Y OU Nas daqG S U S D C hina 39. 05 2,147. 8 241.2 147.2 61. 0% 7. 8x 12. 7x 6

hina G ateway C orporation 9/30/2008 C G W Y OT C P K U S D United S ta tes 0. 02 0.3 6. 7 (6 .6) -98.9% 0. 0x - 3

hines e G amer Interna tional 3/31/2009 G T S M: 3083 G T S M T W D T aiwa n 461 1 ,180. 6 56. 2 31.5 56. 0% 19.8x 35. 4x N

LIC K E R Inc. 5/31/2009 C LK Z OT C B B U S D United S ta tes 0. 01 0.6 2. 5 (1 .2) -45.8% 0. 3x - 2

ornerW orld C orporation 4/30/2009 C W R L OT C B B U S D United S ta tes 0. 06 5.7 3. 9 NM NM 4. 1x - 1

yberplex Inc. 6/30/2009 T S X:C X T S X C AD C anada 1 73. 3 90. 8 9 .8 10. 8% 0. 6x 5. 4x N

ADA S pA 6/30/2009 C M: DA C M E U R Ita ly 6. 42 149. 2 236.8 31.1 13. 1% 0. 8x 6. 3x N

XN Holdings B hd 5/31/2009 DXN K LS E MY R Ma lays ia 0. 57 36. 9 76. 3 11.0 14. 4% 0. 7x 4. 7x N

ibz International, Inc. NA DIB Z OT C P K U S D United S ta tes 0. 00 0.0 NA NM NM - - N

igita lP os t Interactive, Inc. 6/30/2009 DG LP OT C B B U S D United S ta tes 0. 06 4.2 1. 0 (1 .4) NM 6. 3x -

igita lT own, Inc. 5/31/2009 DG T W OT C B B U S D United S ta tes 1. 75 47. 9 NM (2 .5) NM - - olphin Digital Media , Inc. 6/30/2009 DP DM OT C B B U S D United S ta tes 0. 44 23. 6 0. 6 (3 .4) NM 42.3x - N

olith Co. L td. 12/31/2008 A041060 K OS E K R W S outh K orea 1 ,035 60. 8 14. 9 (3 .5) -23.6% 4. 2x - N

xtens ions , Inc. 6/30/2009 E XT I OT C P K U S D United S ta tes 0. 20 8.9 NM NM NM - -

uid Mus ic C a nada , Inc. 6/30/2009 T S X:F MN T S X C AD United S ta tes 1. 27 62. 0 5. 3 (5 .1) -95.2% 10.1x - N

rogs ter Interactive P ictures AG 12/31/2008 F R G XT R A E U R G ermany 19. 20 69. 5 3. 3 (6 .3) NM 20.6x - Nama nia Digita l E nterta inment C o. , Ltd. 6/30/2009 6180 G T S M T W D T aiwa n 50. 40 233. 1 138.9 24.6 17. 7% 1. 5x 8. 6x N

ameOn C o Ltd. 6/30/2009 3812 T S E J P Y J a pan 100,600 104. 5 78. 7 19.3 24. 5% 0. 4x 1. 7x N

eoS entric Oyj 6/30/2009 G E O1V HLS E E U R F inland 0. 04 51. 5 5. 3 (17.1) NM 9. 7x - 1

iant Interactive G roup, Inc. 6/30/2009 G A NY S E U S D C hina 8 1,732. 3 198.5 124.1 62. 5% - - 1,

iga Media L td. 3/31/2009 G IG M Nas daqG S U S D T aiwa n 4. 79 261. 1 183.6 NM NM 1. 0x - 7

ravity C o. , L td 6/30/2009 G R V Y Nas daqG M U S D S outh K orea 1. 80 50. 0 47. 5 16.1 33. 9% - - 4

ree, Inc. 6/30/2009 T S E : 3632 T S E J P Y J a pan 8 ,120 1 ,953. 5 149.9 90.1 60. 1% 12.3x 20. 4x N

ungHo O nline E nterta inment, Inc. 6/30/2009 3765 OS E J P Y J a pan 240,000 295. 5 114.9 25.5 22. 2% 2. 3x 10. 3x N

anbitS oft, Inc. 6/30/2009 A047080 K OS E K R W S outh K orea 4 ,010 71. 3 58. 8 1 .4 2.3% 1. 0x 42. 5x N

C /InterActiveC orp. 6/30/2009 IAC I Nas daqG S U S D United S ta tes 18. 78 2,486. 5 1, 392. 3 52.7 3.8% 0. 5x 14. 2x 3,

S E nergy, Inc. 1/31/2009 I AS A. E OT C B B U S D C anada 0. 14 9.5 0. 0 (0 .8) NM - - N

eemedia Inc. 3/31/2009 IE E T S XV C AD C anada 0. 05 2.4 1. 6 (5 .1) NM 0. 9x - N

umbuck E nterta inment Limited 6/30/2009 AS X:J MB AS X AU D Aus tra lia 0. 40 16. 7 16. 4 7 .0 42. 8% 0. 6x 1. 5x 7

AB Dis tribution Inc. 6/30/2009 T S X:K AB T S X C AD C anada 1 84. 6 68. 6 4 .0 5.8% - - N

ngs oft C o. L td. 6/30/2009 3888 S E HK HK D C hina 9 1 ,225. 4 139.1 61.4 44. 2% 9. 0x 20. 3x 2, 2

ngo Media C orporation 3/31/2009 T S XV :LM T S XV C AD C anada 1. 00 11. 6 1. 0 (1 .6) NM 10.9x - N

veW orld Inc. 6/30/2009 L V W D OT C P K U S D United S ta tes 0. 05 1.5 10. 6 (0 .1) -1 .2% 0. 0x - NookS mart, Ltd. 6/30/2009 L OO K Nas daqG M U S D United S ta tes 1. 17 20. 0 56. 8 (4 .4) -7 .8% - - 9

agnitude Information S ystems Inc. 6/30/2009 MAG Y OT C B B U S D United S ta tes 0. 01 4.1 0. 1 (2 .5) NM - - 1

ixi, Inc. 6/30/2009 2121 T S E J P Y J a pan 538000. 00 891. 0 131.5 44.4 33. 8% 5. 9x 17. 5x N

odern T imes G roup Mtg AB 6/30/2009 MT G B OM S E K S weden 300. 00 2,778. 9 1, 929. 6 296.5 15. 4% 1. 7x 11. 3x 2, 9

O K O.mobi L imited 12/31/2008 MK B AS X AU D Aus tra lia 0. 08 5.7 1. 2 (2 .5) NM 3. 6x - Nyriad G roup AG 12/31/2008 M Y R N S W X C HF S witzerland 4. 56 91. 7 40. 0 0 .8 1.9% 2. 5x - 4

E OW IZ G ames C orporation 12/31/2008 A095660 K OS E K R W S outh K orea 38050. 00 649. 4 200.8 53.9 26. 8% 3. 2x 11. 9x N

etDragon W ebS oft, Inc. 6/30/2009 777 S E HK HK D C hina 6 400. 3 89. 3 30.0 33. 6% 2. 9x 8. 7x 2, 4

eteas e. com Inc. 6/30/2009 NT E S Nas daqG S U S D C hina 42. 52 5,503. 2 472.4 297.4 63. 0% - - 3,euLion Incorporated 6/30/2009 T S X:NLN T S X C AD C anada 1. 10 116. 7 21. 5 (13.0) -60.3% 5. 0x - 2

eXplore C orporation 6/30/2008 NXP C OT C P K U S D United S ta tes 1 30. 7 0. 7 (6 .2) NM 49.2x - N

gi G roup Inc. 6/30/2009 2497 T S E J P Y J a pan 27800. 00 37. 0 89. 4 6 .6 7.4% - - N

orthgate T echnologies L imited 6/30/2009 590057 B S E INR India 49. 95 35. 8 81. 9 (40.9) -50.0% 0. 4x - N

pen T ext C orp. 6/30/2009 O T E X Nas daqG S U S D C anada 34. 73 1,950. 1 785.7 205.1 26. 1% 2. 5x 9. 6x 3, 4

penwave S ys tems Inc. 6/30/2009 O P W V Nas daqG S U S D United S ta tes 2. 80 233. 3 191.7 5 .3 2.8% 0. 6x 23. 4x N

erfect W orld C o. , L td. 6/30/2009 P W R D Nas daqG S U S D C hina 39. 83 1,958. 9 255.6 142.2 55. 6% 0. 6x 1. 0x 2,

NI Digita l Media Inc. 6/30/2009 T S XV :P N T S XV C AD C anada 1. 75 55. 7 21. 3 2 .3 11. 0% 2. 5x 23. 0x Nuepa sa C orp. 6/30/2009 Q P S A OT C B B U S D United S ta tes 1 17. 8 0. 2 (10.6) NM - - 7

AO R B C Information S ystems 12/31/2007 R B C I R T S U S D R us s ia 1. 05 145. 7 150.5 19.7 13. 1% 0. 0x 0. 2x N

handa Interactive E nterta inment Ltd. 6/30/2009 S NDA Nas daqG S U S D C hina 49. 69 3,317. 7 629.0 296.7 47. 2% - - 3,

hutterfly, Inc. 6/30/2009 S F L Y Nas daqG S U S D United S ta tes 13. 34 339. 6 218.6 27.3 12. 5% 1. 3x 10. 1x 5

K C ommunications C o., Ltd. 12/31/2008 A066270 K OS E K R W S outh K orea 9000. 00 305. 8 186.6 12.1 6.5% 1. 6x 25. 2x N

NAP Interactive, Inc. 6/30/2009 S T V I OT C B B U S D United S ta tes 1 5.4 3. 5 0 .9 27. 0% 1. 1x 4. 0x 1

NM G lobal Holdings 9/30/2008 S NMN OT C P K U S D United S ta tes 0. 00 0.0 2. 0 (0 .7) -34.8% 1. 1x - 3

ocia l Media V enures , Inc. 12/31/2008 S MV I OT C P K U S D United S ta tes 0 0.0 0. 1 (0 .1) -60.6% 4. 5x - N

ocia lwis e, Inc. 6/30/2009 S C LW OT C B B U S D United S ta tes 0. 56 24. 8 0. 0 (5 .6) NM - - Nohu.com Inc. 6/30/2009 S O HU Nas daqG S U S D C hina 62. 63 2,400. 9 485.1 209.6 43. 2% 3. 9x 9. 0x 3,

park Networks , Inc. 6/30/2009 L OV AME X U S D United S ta tes 2 46. 3 50. 5 10.8 21. 3% 0. 9x 4. 1x 1

pectrumDNA, Inc. 6/30/2009 S P XA OT C B B U S D United S ta tes 0 10. 7 0. 1 (2 .5) NM - -

T encent Holdings L td. 6/30/2009 700 S E HK HK D C hina 128 29,970.5 1, 391. 6 680.3 48. 9% 23.7x 48. 4x

he P arent C ompany 8/2/2008 K IDS .Q OT C P K U S D United S ta tes 0. 01 0.3 112.0 (13.5) -12.0% 0. 2x - 3

T he9 Limited 12/31/2008 N C T Y Nas daqG S U S D C hina 7. 72 193. 7 250.6 85.5 34. 1% - -

T heS treet. com, Inc. 3/31/2009 T S C M Nas daqG M U S D United S ta tes 2. 43 74. 4 67. 0 1 .9 2.9% 0. 1x 5. 1x

ota l S port O nline AS 3/31/2006 T O S O OT C NO NO K Norway 0. 03 0.1 2. 2 (1 .1) -50.6% 4. 6x -

ree .C om, Inc. 6/30/2009 T R E E Nas daqG M U S D United S ta tes 7. 47 80. 7 216.6 (0 .7) -0 .3% 0. 4x - 7nis erve C ommunications C orp. 2/28/2009 T S XV :U S S T S XV C AD C anada 0. 05 1.0 24. 2 0 .1 0.2% 0. 2x - N

nited Online Inc. 6/30/2009 U NT D Nas daqG S U S D United S ta tes 7. 32 613. 7 949.8 203.2 21. 4% 0. 9x 4. 3x 1,

OMO Media , Inc 4/30/2009 U OMO OT C B B U S D C anada 0 12. 0 0. 9 (0 .5) -53.2% 14.4x - N

alueC lick Inc. 6/30/2009 V C LK Nas daqG S U S D United S ta tes 10 895. 1 563.6 99.0 17. 6% 1. 3x 7. 7x 1,

OIS , Inc. 6/30/2009 V O IS OT C B B U S D United S ta tes 0 4.1 0. 0 (1 .0) NM - -

ebzen Inc. 6/30/2009 W ZE N Nas daqG M U S D S outh K orea 2. 89 34. 3 22. 4 2 .2 9.9% - - 3

izzard S oftware C orporation 6/30/2009 W ZE AME X U S D United S ta tes 0. 43 21. 7 5. 3 (4 .5) -84.9% 4. 3x - 1

orlds . com Inc. 6/30/2009 W DDD OT C B B U S D United S ta tes 0. 10 5.2 0. 1 (0 .7) NM - - oozyF ly, Inc. 6/30/2009 W ZY F OT C B B U S D United S ta tes 0. 15 2.6 NM NM NM - - N

ynds torm C orporation NA W Y ND OT C P K U S D United S ta tes 0. 10 1.8 NA NM NM - - N

NG AG 6/30/2009 O 1B C XT R A E U R G ermany 32. 25 243. 7 57. 6 16.6 28. 8% 3. 3x 11. 6x 2

eda ngOnline C orp. 12/31/2007 A052770 K OS E K R W S outh K orea 9 ,080 110. 4 55. 6 12.0 21. 6% 2. 1x 9. 9x N

nk K orea Inc. 12/31/2008 A023770 K OS E K R W S outh K orea 4 ,260 18. 5 11. 5 1 .2 10. 5% - - N

igh 29,970.5 1,929. 6 680. 3 63. 0% 49.2x 48. 4x 6, 4

ow 0.0 0.0 -40.9 -98.9% 0. 0x 0. 2x

verage 739.6 161.4 38.8 6.0% 6.0x 12.7x 89edian 65. 7 57.6 2. 3 13. 1% 2. 1x 10. 0x 3

gure 1. Web 2.0 Universe Summaryource. Capital IQ

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A PI TA L M A R K ETS A C T I V I TY ( M & A A N D F I N A N C I N G )

Slow start to financing activity for new school year: With only f ive financing transac tions to start September, the larransaction thus far is the $5 mill ion financing for YuMe (Advertising). The total for September so far is just $12.2 milveraging $2.4 mill ion per f inancing. Total capital raised in August was $208.5 mill ion, averaging $7.7 mill ion (27 deuly on 35 transactions was $191.4 mill ion, averaging $5.5 mill ion, and June (42 deals) was $204.7 mill ion (averaging

mill ion).

Financing Activity Last Twelve Months

7.0

9.7

7.0

6.5

7.1

6.66.2

14.6

4.9

5.5

7.7

2.4

16.2

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

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

(US$m)

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

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

gure 2. Financings, Last Twelve Monthsource. Company reports

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Bay sells Skype in largest M&A deal this year: While financing activity has been slow so far, by far the largest Mransaction this year was announced on September 1, with eBay sell ing 65% of Skype for $1.9 bil l ion in cash plus a $

mill ion note. In other acquisit ion news, Canadian company NowPublic was acquired for a rumoured $25 mill ion. ddit ional details on financings, see Figures 23 and 24 (at end of note).

Financing & M/A Summary - Last Three Months

0.0

20.0

40.0

60.0

80.0

100.0

120.0

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Skype

PeopleMe

dia

SuperRewa

rds

Turb

ine

FriendsReunited

AdLinkInternetMe

dia

PandoraMe

dia

Smith&Tin

ker

NowPublic

iL

ike

xoopit

MediaM

ath

KonteraLtd.

N

ing

M

int

RichRelevance

QuickPlayMe

dia

Tra

ffiq

Causes

EdoInteractive

Bill.c

om

Outsp

ark

ConnectE

du

Acquia,

Inc

SBNation

InnoCentive

OneR

iot

Balihoo

Metavers

um

iMemories

Invodo

Boxee

Polyv

ore

Fanbase

MOG

Jamb

ool

Yu

Me

QuikrIndiaPvt.Ltd.

OPENSportsnetw

ork

Nexage

StyleCaster

TweetDeck

OurStage

Z2L

ive

KO

DA

Scoreloop

Busca

ProtonMe

dia

MashLo

gic

Akadem

os

Rob

lox

Greystripe

iSoc

ket

TremorMe

dia

iLoopMobile

Comunitae

RightsF

low

Aloqa

La

t49

Plista

FourSqu

are

EduFire

ChessCube

Thread

Tributes.c

om

CoTw

eet

CognitiveMatchLimited

Cellu

fun

Clikthrough

Linksify

PeopleCap

ital

BookFresh

iSynd

ica

MasherMe

dia

Gigp

ark

(US$m

)SepAug

Jul-

gure 3. Capital Market Activity, Last Three Monthsource. Company reports

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Advertising remains the most active sector: Advertising related companies continue to see the most activity by numof transactions (10), followed by the Gaming sector (seven transactions) and the Social Network sector, also with setransactions (Figure 4). The $2.0 bil l ion acquisit ion of Skype skews the dollars transacted to the SMS/Voice segment.

Capital Market Activity by Sector - Last Three Months

2,025.0 100.1 90.5 80.0 76.0 64.9 64.5 40.0 37.3 19.3 18.2 17.7 12.5 12.0 10.0 8.6 8.0 7.0 5.0 4.1 4.0 3.2 1.0 0.5 00.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

200.0

SMS/Voice

Advertising

Gaming

OnlineDating

SocialNetworks

VirtualWorld

Music

Infrastructure

Crowdsourced

Content

Vertical

Communities

Video

Mobile

Comment/Reputation

OnlineLearning

Enterprise

Media

Blog

Search

VirtualGoods

Classified

MobileAd

Microblog

Analytics

OnlineLending

O

l i

C

l

d

1 10 7 1 7 4 5 5 3 3 4 4 1 3 3 2 1 1 1 1 2 1 1 1

(US$m)

# companies

gure 4. Capital Market Activity, by Sector, Last Three Monthsource. Company reports

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A PI TA L M A R K ETS A C T I V I TY ( PR I C E PER FO R M A N CE)

Web 2.0 index continues to outpace NASDAQ recovery: Our Web 2.0 index (market-cap weighted) essentially mirrothe performance of the NASDAQ composite index from mid-2008 until earlier this year. However, the index has recehad a much stronger recovery relative to the NASDAQ index (Figure 5).

Web 2.0 Index Price Performance

0

20

40

60

80

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120

140

160

9/8/2008

9/2

2/2008

10/6/2008

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

gure 5. Web 2.0 Price Performanceource. Capital IQ

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A mixed price performance week: Twenty-seven of the companies in our universe had positive stock price performanover the past week (for stocks with prices greater than $1) (Figure 6), with 21 companies showing negative returns onweek. DigitalTown (OTCBB:DGTW) led the group with a 25.0% return, while Cyberplex (TSX:CX) had the worst retdropping 14.8% in the week.

1 Week Price Performance

-14.8%

-10.6%-9.7%

-9.3%-8.9%

-8.3%-5.9%-5.8%

-3.6%-3.5%-3.3%-3.3%-3.2%

-2.9%-2.4%-2.4%-2.3%-2.2%-2.0%

-1.0%-0.3%

0.0%0.0%0.0%0.3%0.3%

0.4%0.6%0.7%0.9%1.1%1.2%1.2%

2.0%2.0%

2.4%2.9%3.1%

3.4%4.1%

5.8%5.9%6.1%

7.2%10.7%

11.0%11.2%

13.5%19.1%

23.6%25.0%

-20.0% -15.0% -10.0% -5. 0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30

Cyberplex Inc.

Mixi, Inc.S hutterfly, Inc.

Fluid Mus ic Canada, Inc.Ngi Group Inc.

NeuLion IncorporatedThe9 Limited

Ac toz S oft Co., Ltd.TheS treet.com, Inc.

Ga meOn Co L td.PNI Digital Media Inc.

CDC Corp.S K Communica tions C o., Ltd.

S handa Interac tive EntertainmentGree, Inc.

Open Text Corp.V alueClick Inc.

S park Netw orks , Inc.Giant Interactive G roup, Inc.

Webzen Inc.DADA SpA

Gamania Digital Entertainment Co.,LookS mart, Ltd.Quepas a Corp.

S ohu.com Inc.Perfect World Co., Ltd.

GigaMedia Ltd.IAC/InterActiveCorp.

Openw ave S ys tems Inc.HanbitSoft, Inc.

Neteas e.c om Inc.NetDragon WebS oft, Inc.

Tree.Com, Inc.AQ Interactive, Inc.

Y edangOnline Corp.Y nk Korea Inc.

Changyou.com LimitedModern T imes Gr oup Mtg AB

GungHo Online Entertainment, Inc.Kings oft Co. Ltd.

Myriad Group AGGravity Co., Ltd

Frogster Interactive Pictures AGUnited O nline Inc .

Eolith Co. Ltd. Tenc ent Holdings L td.

XING AGChines e Ga mer InternationalNEOWIZ G ames Corporation

Northgate Tec hnologies LimitedDigitalTow n, Inc.

gure 6. 1-Week Price Performanceource. Capital IQ

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U B LI C C O M PA N Y I N D U STR Y N EW S ( PA R TN ER SH I PS , F I N A N C I A L R ESU LTS, N EW PR O D U C TS)

Key Developmentsompany Headline Notes

ingo Media Corporation (TSX V:LM) Lingo Media C orporation R eports Unaudited

Consolidated Earnings R esults for the Se cond Quarter

and Six Months E nded June 30, 2009

Lingo Media Corporation reported unaudited consolidated earnings results for the s econd quarter and six months ended J une 30, 2009. For

the quarter, the company's net loss was CAD 691,389 compared with CAD 491,229 for the same period a year ago. Loss per share from

continued operation was CAD 0.06 compared with CAD 0.04 for the sa me period a year a go. The company's revenue was CAD 654,358

compared with CAD 393,709 for the sa me period a year ago. Loss from continuing operations was C AD 691,38 9 compared with CAD

392,010 for the same period a year ago. N et cash flow provided by operating activities was CAD 135,926 compared with net cash flow usedin operating activities of CAD 235,683 for the same period a year a go. T he company invested on purchase of property and equipment was

CAD 23,818 compared with CAD 147 for the same period a year ago.

For the six months, the company's net loss was CAD 795,416 compared with CAD 944,782 for the same period a year ago. Loss per share

from continued operation was CAD 0.09 compared with CAD 0.08 for the sa me period a year ago. The company's revenue was CAD

709,678 compared with CAD 393,709 for the sa me period a year ago. Loss from continuing operations was CAD 1,146,524 compared with C

orthgate Technologies Limited

BSE:590057)

Northgate Technologies Limited, B oard Meeting, S ep 01,

2009

Northgate Technologies Limited, B oard Meeting, S ep 01, 2 009 Agenda: T o convene annual general meeting of the company on September

30, 2009 and to close the register of members and s hare transfer books of the company from September 28, 2009 to Se ptember 30, 2009

inclusive of both days for the purpose of annual general meeting of the company.

Myriad Group AG (SWX:MYRN) Myriad Group Appoints James Bodha as New Chief

Financial Officer

Myriad Group AG announced the appointment of James Bodha a s its new Chief Financial Officer (CF O), e ffective S eptember 2, 2009.

Bringing both significant international experience and deep industry knowledge of the mobile sector, his primary responsibility will be to

ensure that Myriad's financial operations management evolves in line with the growth of the company. Prior to joining Myriad, Bodha was

Group C FO a t Aircom International. During his more than 3 years in that role, he was res ponsible for building and leading a global finance

organisation in line with that company's 1,300 staff in 18 worldwide offices, and improving the company's financial systems and internal

control processes .

right Things plc (AIM:BGT) Bright Things plc a nnounced it expects to receive 0. 94

million in funding.

Bright Things plc (AIM:BGT) announced a subsequent placing of 75,200,000 common shares at 0.0125 per share for gross proceeds of

0.94 million on September 2, 2009. Dominic W heatley, Chief E xecutive Officer of the company, and I an Livingstone, Chairman of the

company will participate in the transa ction and will hold 69,005,102 s hares, representing 25.5% stake and 11,998,880 shares , represe nting4.4% stake res pectively. Institutional investors also participated in the transaction. Astaire S ecurities Plc will act as a broker to the company

The shares have been placed to the institutional investors by Astaire S ecurities P lc and SocialG O staff members. T he shares will be

subsequently listed on London Stock E xchange AIM Market.

LIC K ER Inc. ( OTC BB:C LK Z) CLIC KE R Inc. Announces Management Changes Effective August 28, 2009, Manu Ohri resigned as the Chief Executive Officer of CLICKE R Inc. On September 1, 2009, Mr. Albert Aimers

was a ppointed as the Company's Interim Chief Financial Officer. Mr. Aimers has been Chairman of the Board and C hief Executive Officer of

the Company since J anuary 2006. F rom 2003-2006, Mr. Aimers was Pres ident and CE O of Digital Wa llStreet Inc. and the founder of

Wallst.net and F inancial Publishing company.

AB Distribution Inc. (TSX:KAB) KAB Distribution Inc. Declares C as h Distribution Paya ble

on September 22, 2009

KAB Distribution Inc. announced that a c ash distribution of $0.65 per common share will be paid on S eptember 22, 2009 to shareholders of

record on September 17, 2009 as a return of capital, s ubject to court approval.

eyond Commerce, Inc.

OTC BB:BYOC )

Be yond Comm erce Launch es in A ustra l ia Be yond Comm e rce Inc . an noun ced i ts n e w ge ograph ical ly -targe te d onl in e se rv ice s be ne f it local bus ine sse s across the Un ited S tate s an d

now Australia. Around Aus tralia, local c ompanies, often small and medium enterprises, will benefit from the international la unch of US -based

LocalAdLink's geographically-targeted online local advertising services.

handa Interactive E ntertainment Ltd.

NasdaqGS:SNDA)

S handa Interactive Entertainment Ltd. R eports Unaudited

Consolidated Earnings R esults for the Se cond Quarter

and Six Months E nded June 30, 2009

S handa Interac tive Entertainment Ltd. reported unaudited consolidated earnings re sults for the seco nd quarter and six months ended June

30, 2009. For the quarter, the company reported operating profit of R MB 513.4 million, income from operation of RMB 513.4 million, net

income of R MB 430.7 million, net income attributable to ordinary shareholders of R MB 426.9 million or R MB 3.07 diluted per share on total

net revenues of R MB 1,237.2 million against operating profit of R MB 335.6 million, income from operation of RMB 335.6 million, net income

of R MB 281.9 million, net income attributable to ordinary s hareholders of R MB 279.8 million or RMB 1.90 diluted per sha re on total net

revenues of R MB 837.6 million for the same period a yea r ago. Acc ording to Non-GAA P, operating profit of RMB 531.5 million, net income

attributable to ordinary sha reholders of R MB 4 45.0 million or RMB 6.40 diluted per share against operating profit of RMB 350.7 million, net

income attributable to ordinary s hareholders of R MB 294.9 million or R MB 4.00 diluted per share for the same period a year a go.

For the six months, the company reported income from operation of R MB 9 69.1 million, net income of R MB 7 97.5 million, net income attribu

igitalTown, Inc. (OTCBB:DGTW); The

ctive Network, Inc.

DigitalTown Inc. Announces Partnership with The Active

Network, Inc

On S eptember 01, 200 9, the B oard of Directors o f DigitalTown Inc. a pproved a Letter of Intent to move forward with a partners hip with The

Active Network Inc. The L OI ca lls for DigitalTown and Active to participate in J oint Promotion, Joint Technology, New Hyper-Local Ad

Technology and revenue sharing of the DigitalTown 14,700 on-line content and news hub for school spirit sites; this will expand to all of

DigitalTowns 27, 000 sites . In Socia l Networking-Active will es tablish a DigitalTown-branded and tailored section of the Active community,

providing a common interface for curr ent Active members as well as new DigitalTown members . In C ontent-Active will provide content that

will include H.S . football, bas ketball, lacrosse and more with schedules, s cores, ratings, rankings, game previews a nd recaps as sociated wit

each individual H.S . team.


NasdaqGS:SNDA)

Sh an da Interactive Mul ls A cquis i tion s I t w as re porte d that Sh an da Interactive En terta inm en t Ltd. plans to ra i se as much as $ 8 00 mi ll ion in a U . S . IPO for i ts game s uni t. Ch e n

Tia nqiao, S handas founder said in the pas t that he would like to ultimately trans form his company into a divers ified media firm. The firm said

that it will use the IPO proceeds to fund acquis itions and joint ventures, as well as for ca pital expenditure.


NasdaqGS:SNDA)

S handa Interactive E ntertainment Ltd. P rovides E arnings

Guidance for the Third Quarter of 2009

S handa Interac tive Entertainment Ltd. provided earnings guidance for the third quarter of 2009. T he company expected that consolida te net

revenues for third quarter of 2009 to increas e by a rate in the range of 8% to 11% quarter over quarter. The company expect operating

margin for the third quarter 2009 to be similar to that of second quarter 2009, both on a non-GAAP basis.

hangyou.com L imited

NasdaqGS:CYOU)

Changyou.com Limited has filed a S helf Registration in

the amount of $381.30 million.

Cha ngyou.com Limited has filed a S helf Re gistration in the amount of $381. 30 million.

etease.com Inc. (NasdaqGS:NTES) Netease.c om Inc., Annual General Meeting, Sep 04,2009 Netease.com Inc., Annual General Meeting, S ep 04, 2009, at 10:00 CC T-C hina Coas t, USS R Zone 7. Location: 26/F, S P T ower D, Ts inghuSc ience Park B uilding 8, No. 1 Zhongguancun Eas t Road, H aidian District, B eijing, People's R epublic of China 100084, China. Agenda: To

re-elect seven directors to serve for the ensuing year or until their successors are elected and duly qualified; to ratify the appointment of

PricewaterhouseC oopers Zhong Tian C PAs Limited company as independent auditor for the fiscal yea r ending December 31, 2009; a nd to

transact such other business as may properly come before the 2009 annual general meeting of shareholders or any adjournment or

postponement thereof.

etDragon WebSoft, Inc. (S EHK: 777) NetDragon WebS oft, Inc., 0.082 (HK D), Ca sh Dividend,

S ep-07-2009

NetDragon WebS oft, Inc., 0.082 (HK D), Cas h Dividend, Sep-07-2009


NasdaqGS:SNDA)

S handa Interactive E ntertainment Ltd. Announces B oard

Changes

Shanda Interactive E ntertainment Ltd. a nnounced the resignation of Bruno W u from the B oard of Directors of the Company, effective

Se ptember 1, 2009. Concurrently, the C ompany announced the appointment of Mr. K ai Zhao to the B oard of Directors of the Company,

effective immediately. Mr. Zhao previously s erved as dean of the Journalism Sc hool of Fudan University, secretary general of the China

Communist P arty (CC P) committee of Wenhui-Xinmin United Pres s Newspa per Group, chief editor of Liberation Daily and secretary genera

of the CC P committee of Sha nghai Municipal R adio, Film and Television Burea u as well as in various managerial roles at S hanghai

Municipal R adio and Television Bureau, O riental R adio Station, Shanghai People's R adio Station and Qinghai Daily.

gure 7. Key Developmentsource. Capital IQ

8/14/2019 09-09-09 Web 2.0 Weekly

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A LU A TI O N

Online Gaming companies lead market-cap charts: Thirteen companies in our Web 2.0 universe top US$1 bil l iomarket capitalization (Figure 8). Fifty-seven of the 91 companies have market caps under US$100 mill ion, with 26 unUS$10 mill ion. Online gaming companies dominate the top of the list, led by Tencent Holdings with a market cap nUS$30 bil l ion.

Market Cap (US D m)

0. 00. 00. 00. 10. 30. 30. 60. 61. 01. 31. 51. 82. 02. 42. 64. 14. 14. 2

5. 25. 45. 75. 76. 18. 99. 59. 710.711.612.015.816.717.818.519.520.021.723.624.829.830.734.335.836.937.0

46.347.950.051.555.760.862.069.571.373.374.480.784.691.7104.5110.4116.7124.8145.7149.2193.7233.1233.3243.7252.2261.1295.5305.8339.6400.3613.7649.4891.0895.11180.6

1732.31950.11953.51958.92147.82400.92486.52778.93317.75503.229970.5

1225.4

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

Social Media V enures, Inc.Dibz International, Inc.

S NM Global HoldingsTotal Sport Online A SThe Parent Company

China Gatew ay CorporationCLICKER Inc.

As s ociated Media Holdings Inc.Uniserve Communications Corp.

Bigstring Corp.LiveWorld Inc.

Wy nds torm Corpora tionBetaw ave Corporation

ise emedia Inc.WoozyFly, Inc.

Magnitude Infor mation S ys tems Inc.V OIS, Inc.

DigitalPost Intera ctive, Inc.

Worlds. com Inc.SNAP Interactive, Inc.

MOKO.mobi LimitedCornerWorld Corporation

Br ight Things plcExtensions, Inc.IAS E nergy, Inc.

Bey ond Commerce, Inc.S pectrumDNA, Inc.

Lingo Media CorporationUOMO Media, Inc

Ac celerize New Media, Inc.Jumbuck Entertainment Limited

Quepas a Corp.Y nk Korea Inc.

BroadWebAs ia Inc.LookS mart, L td.

Wizz ard S oftware CorporationDolphin Digital Media, Inc.

Socialwis e, Inc.AQ Interactive, Inc.

NeXplore CorporationWebzen Inc.

Northgate Tec hnologies LimitedDXN Holdings B hdNgi Group Inc.

Spark Netw orks, Inc.DigitalTow n, Inc.Grav ity Co., LtdGeoSentric Oy j

PNI Digital Media Inc.Eolith Co. Ltd.

Fluid Mus ic Cana da, Inc.Frogs ter Interactive Pictures A G

HanbitSoft, Inc.Cyberplex Inc.

TheStreet.c om, Inc.Tree.Com, Inc.

KA B Dis tribution Inc.Myriad Group AG

Ga meOn Co L td.Y edangOnline Corp.

NeuLion IncorporatedAc toz S oft Co., L td.

OA O RB C Information Sy s temsDADA SpA

The9 LimitedGamania Digital Entertainment Co.,

Openwave Systems Inc.XING AG

CDC Corp.GigaMedia Ltd.

GungHo Online Entertainment, Inc.S K Communica tions C o., Ltd.

S hutterfly, Inc.NetDragon WebS oft, Inc.

United Online Inc.NEOWIZ Ga mes Corporation

Mixi, Inc.V alueClick Inc.

Chinese Gamer InternationalKingsof t Co. Ltd.

Giant Interac tive Group, Inc.Open Text Corp.

Gree, Inc.Perfect World Co., Ltd.Changyou.com Limited

S ohu.com Inc.IAC/InterActiveCorp.

Modern T imes Gr oup Mtg ABS handa Interac tive Entertainment Ltd.

Netease. com Inc.Tenc ent Holdings Ltd.

gure 8. Market Cap Rankingource. Capital IQ

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TEV/Revenue (LTM) averages 6.0x: The overall average TEV/Revenue (LTM) multiple for our group is 6.0x (vs. 5.3xweek) (Figure 9). Three companies trade at more than 25x revenue Bigstring Corp. (OTCBB:BSGC) at 37.5x, DolDigital Media, Inc. (OTCBB:DPDM) at 42.3x, and NeXplore Corp (OTCPK:NXPC). The median is only 2.1x. Note thatexclude multiples greater than 50x. Thirty companies have multiples unde r 1.5x.

TE V/LT M R evenue (x)

0.10.10.2 0.20.3 0.4 0.40.4 0.5 0.60 .6 0.6 0.6 0.7 0.70.80 .9 0.9 0.90.9 1.0 1.0 1.1 1.11.3 1.3 1.3 1.5 1.5 1.6 1.7

2.12.3 2.5 2.5 2.52.93.2 3.3 3.6

3.9 4.14.2 4.3 4.54.6 4.75.0

5.9 6.37.8

9.0 9.7 10.110.9

12.3

14.415.6

19.820.6

22.423.7

37.5

42.

Average, 6.0

0. 0

10.0

20.0

30.0

40.0

50.0

60.0

AQInteractive,

Inc.

TheStreet.com,

Inc.

UniserveCommunicationsCorp.

TheParentCompany

CLICKERInc.

GameOnCoLtd.

Tree.C

om,

Inc.

NorthgateTechnologiesLimited

IAC/InterActiveCorp.

PerfectWorldCo.,

Ltd.

CyberplexInc.

JumbuckEntertainmentLimited

OpenwaveSystemsInc.

DXNHoldingsBhd

CDCCorp.

DADASpA

iseemediaInc.

SparkNetworks,

Inc.

ActozSoftCo.,

Ltd.

UnitedOnlineInc.

HanbitSoft

,Inc.

GigaMediaLtd.

SNMGlobalHoldings

SNAPInteractive,

Inc.

Shutterfly

,Inc.

BeyondCommerce,

Inc.

ValueClickInc.

GamaniaDigitalEntertainmentCo.,

YnkKoreaInc.

SKCommunicationsCo.,

Ltd.

ModernTimesGroupMtgAB

YedangOnlineCorp.

GungHoOnlineEntertainment,Inc.

MyriadGroupAG

OpenTextCorp.

PNIDigitalMediaInc.

NetDragonWebSoft

,Inc.

NEOWIZGamesCorporation

XINGAG

MOKO

.mobiLimited

Sohu.c

om

Inc.

CornerWorldCorporation

EolithCo.

Ltd.

WizzardSoftwareCorporation

SocialMediaVenures,

Inc.

TotalSportOnlineAS

AccelerizeNewMedia

,Inc.

NeuLionIncorporated

Mixi,Inc.

DigitalPostInteractive,

Inc.

Changyou.c

omLimited

KingsoftCo.

Ltd.

GeoSentricOyj

FluidMusicCanada,

Inc.

LingoMediaCorporation

Gree,

Inc.

UOMO

Media

,Inc

AssociatedMediaHoldingsInc.

ChineseGamerInternational

FrogsterInteractivePicturesAG

BrightThingsplc

TencentHoldingsLtd.

BigstringCorp.

DolphinDigitalMedia

,Inc

gure 9. TEV/Revenue Rankingource. Capital IQ

TEV/Revenue (LTM) by country/exchange: We have also calculated multiples based on where the companies are lior domiciled. Figure 10 shows the average TEV/Revenue multiples by stock exchange. The OTCBB has the largnumber of companies (19), trading at an average multiple of 12.4x (vs. 12.7x last week). On a geographic basis, United States has the most companies (39), trading a t an average of 7.6x revenue (vs. 5.9x last week) (Figure 1 1). Tethe companies are Canadian (average 4.6x revenue).

Average TEV/LTM Revenue - By Exchange

0.40.30.00.70.8

1.71.92.12.22.32.52.63.6

4.64.75.29.7

10.110.711.9

12.012.4

22.4

0.0

5.0

10.0

15.0

20.0

25.0

AIM

OTCBB

XTRA

SEHK

GTSM

OTCPK

HLSE

TSX

TSE

OTCNO

TSXV

AMEX

SWX

OSE

KOSE

ASX

NasdaqGS

OM

CM

KLSE

BSE

NasdaqGM

RTS

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

(x)

# Companies

Average TEV/LTM Revenue - By Country

0.7 00.8 0.7

1.72.12.22.54.2

4.64.67.57.6

8.09.7

12.0

22.4

0.0

5.0

10.0

15.0

20.0

25.0

United

Germany

Finland

China

United

Taiwan

Canada

Norway

Japan

Switzerland

South

Australia

Sweden

Italy

HongKong

Malaysia

1 2 1 10 39 3 10 1 6 1 8 2 1 1 1 1

(x

)

# Companies

gures 10 & 11. TEV/Revenue Ranking (Exchange, Country)ource. Capital IQ

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TEV/EBITDA (LTM) averages 12.7x: The average multiple for the 35 companies with posit ive EBITDA (and multiunder 100x) is 12.7x LTM EBITDA (vs. 12.4x last week), led by Tencent Holdings (SEHK-700) 48.4x multiple (Figure Twelve companies have EBITDA multiples under 7x. The median multiple is 9.9x (vs. 9.8x last week).

TEV/LTM EBITDA (x)

1. 0 1 .5 1 .7 3. 74. 0 4. 1 4. 3 4. 7

5. 1 5. 4 6. 37. 7 8. 6 8. 7

9. 0 9. 6 9 .9 9 .9 10.110.3 11.3 11.6

11.9 12.714.2 14.5

17.520.3 20.4

23.0 23.425.2

35.4

42.5

4

Average, 12.7

0. 0

10.0

20.0

30.0

40.0

50.0

60.0

PerfectWorldCo.,

Ltd.


GameOnCoLtd.

ActozSoftCo.,

Ltd.

SNAPInteractive,

Inc.

SparkNetworks,

Inc.

UnitedOnlineInc.

DXNHoldingsBhd

TheStreet.com,

Inc.

CyberplexInc.

DADASpA

ValueClickInc.


Ltd.

NetDragonWebSoft,

Inc.

Sohu.comI

nc.

OpenTextCorp.

CDCCorp.

YedangOnlineCorp.

Shutterfly,

Inc.

GungHoOnlineEntertainment,Inc.


XINGA

G


Changyou.com

Limited


YnkKoreaInc.

Mixi,Inc.

KingsoftCo.

Ltd.

Gree,

Inc.

PNIDigitalMediaInc.

OpenwaveSystemsInc.

SKCommunicationsCo.,

Ltd.


HanbitSoft,

Inc.

l d

d

gure 12. TEV/EBITDA Rankingource. Capital IQ

TEV/EBITDA (LTM) by country/exchange: Figure 13 shows the average TEV/EBITDA multiples by stock exchange. OTCBB has the largest number of companies (19), trading at an average multiple of 4.0x. On a geographic basis, United States has the most companies (39), trading at an average of 9.1x EBITDA (Figure 14). Ten of the companies Canadian (average 12.7x EBITDA).

Average TEV/LTM EBITDA - By Exchange

0.21.54.04.14.75.15.4

6.310.210.311.311.6

13.2

18.622.023.0

25.8

0.0

5.0

10.0

15.0

20.0

25.0

30.0

SEHK

TSXV

GTSM

KOSE

TSE

XTRA

OM

OSE

NasdaqGS

CM

TSX

NasdaqGM

KLSE

AMEX

OTCBB

ASX

RTS

3 4 2 6 5 2 1 1 14 1 4 5 1 2 19 2 1

(x)

# Companies

Average TEV/LTM EBITDA - By Country

1.5 0.

4.76.3

9.19.911.311.612.5

12.7

16.7

18.6

22.0

0.0

5.0

10.0

15.0

20.0

25.0

Taiwan

South

Korea

China

Canada

Japan

Germany

Sweden

HongKong

United

States

Italy

Malaysia

Australia

Russia

3 8 10 10 6 2 1 1 39 1 1 2 1

(x)

# Companies

gures 13 & 14. TEV/EBITDA Ranking (Exchange, Country)ource. Capital IQ

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P/E (LTM) averages 18.4x: The average multiple for the 33 companies with posit ive earnings (and multiples under 1s 18.4x LTM EPS (vs. 18.1x last week), led by GungHo Online Entertainments (OSE:3765) 66.5x multiple (Figure

Eleven companies have P/E multiples under 10x. The median is just 13.1x.

P/E LT M (x)

2 .1 2 .2 2. 4 2. 8 3. 14. 9 6. 2

6. 5 9. 6 10.310.9 11.8 12.1

12.7 13.1 13.714.2 14.7

16.318.3

20.0 20.3

24.5 25.6

32.535.0

43.145.0 45.6

61.2

66

Average, 18.4

0. 0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

GiantInteractiveGroup,

Inc.

The9Limited

ShandaInteractiveEntertainmentLtd.

PerfectWorldCo.,

Ltd.

Netease.comI

nc.


DXNHoldingsBhd

CyberplexInc.

SNAPInteractive,

Inc.

GigaMediaLtd.

GameOnCoLtd.


YedangOnlineCorp.

SparkNetworks,

Inc.

HanbitSoft,

Inc.


Sohu.comI

nc.

Changyou.comL

imited

NetDragonWebSoft,

Inc.

ActozSoftCo.,

Ltd.

Worlds.comI

nc.


Ltd.

KingsoftCo.

Ltd.

XINGA

G

OpenTextCorp.


Gree,

Inc.

Mixi,Inc.


TencentHoldingsLtd.

G n g H o O n l i n e E n t e r t a i n m e n t I n c

gure 15. P/E Rankingource. Capital IQ

P/E (LTM) by country/exchange: Figure 16 shows the average P/E multiples by stock exchange. The OTCBB hasargest number of companies (19), trading at an average multiple of 14.8x. On a geographic basis, the United States

the most companies (39), trading at an average of 13.5x earnings (Figure 17). Ten of the companies are Canad(average 19.5x EPS).

Average P/E - By Exchange

0.02.1

4.96.26.510.4

12.713.714.8

19.625.6

33.033.034.0

66.5

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

OSE

SEHK

TSE

GTSM

XTRA

KOSE

OTCBB

OM

AMEX

NasdaqGS

TSX

KLSE

ASX

NYSE

NasdaqGM

1 3 5 2 2 6 19 1 2 14 4 1 2 1 5

(x)

# Companies

Average P/E - By Country

0.0

4.96.2

13.113.513.714.4

19.525.425.6

41.4

0.0

5.0

10.0

15.0

20.025.0

30.0

35.0

40.0

45.0

Japan

Germany

Taiwan

Canada

China

Sweden

United

States

South

Korea

Malaysia

Australia

Switzerland

6 2 3 10 10 1 39 8 1 2 1

(x)

# Companies

gures 16 & 17. P/E Ranking (Exchange, Country)ource. Capital IQ

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PCOMING EVENTS

E arnings C alendarCompany Date & Time Quarter C onf Call Deta ils

NA NA NA N A

gure 18. Earnings Calendarource. Company reports

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Comparable Company Analysis > Web 2.0

rice Performance

ompany Name C urrency Ticker E xchange US D Market C ap ($m) C urrent Price 1 Wk 1 Mth 3 Mth 6 Mth 1 Yr 52 Wee

ccele rize N ew Media , Inc. US D AC LZ OT C B B 15. 8 0.57 1.8% 26.7% 14.0% 62.9% -9.5% -13.6%

ctoz S oft C o. , L td. K R W A052790 K O S E 124.8 17,850 -5.8% -24.2% -35.4% 70.0% 100.6% -50.4%

Q Interactive, Inc. J P Y 3838 T S E 29. 8 51,000 2.0% -13.0% -28.2% 61.9% -55.4% -59.8%

s s ociate d Media Holdings Inc. US D AS MH OT C P K 0.6 0.01 -30.0% -30.0% 833.3% 180.0% -30.0% -72.0%

gs tring C orp. US D B S G C OT C B B 1.3 0.02 10.0% -12.0% -12.0% 78.9% -63.3% -68.6%

etawave C orporation US D B W AV OT C B B 2.0 0.07 -6.7% -6.7% -6. 7% -41.7% -72.0% -79.4%eyond C ommerce , Inc. US D B Y O C OT C B B 9.7 0.21 23.5% -41.7% -79.2% -58.0% -91.6% -92.8%

right T hings plc G B P AIM:B G T AIM 6.1 0.01 -5.2% -8.3% 5.0% -8.3% -8.9% -44.3%

roadW ebAs ia Inc. US D B W B A OT C P K 19. 5 0.23 -22.8% -22.8% -54.9% -77.2% -84.7% -92.1%

DC C orp. US D C HIN.A Na sdaqG S 252.2 2.38 -3.3% -28.5% 53.5% 213.2% -3.3% -39.3%

hangyou.com L imited US D C Y OU Na sdaqG S 2,147. 8 39.05 2.9% -2.4% 0.6% NM NM -19.3%

hina G ateway C orporation US D C G W Y OT C P K 0.3 0.02 -25.0% 650.0% 650.0% 650.0% -50.0% -57.1%

hine se G amer International T W D G T S M:3083 G T S M 1,180. 6 461.00 13.5% 7.2% 35.4% 223.5% 553.9% -11.2%

LIC K E R Inc. US D C LK Z OT C B B 0.6 0.01 25.0% 25.0% 97.4% -70.0% -98.6% -98.7%

ornerW orld C orporation US D C W R L OT C B B 5.7 0.06 9.1% 20.0% -33.3% -60.0% -90.2% -90.2%

yberplex Inc. C AD T S X:C X T S X 73. 3 1.21 -14.8% -28.8% -21.9% 245.7% 101.7% -39.2%

ADA S pA E UR C M:DA C M 149.2 6.42 -0.3% 6.1% 5.4% 38.7% -42.6% -45.2%

XN Holdings B hd MY R DXN K L S E 36. 9 0.57 2.7% 28.4% 48.7% 101.8% 48.7% -0. 9%

ibz Internationa l, Inc. US D DIB Z OT C P K 0.0 0.00 20.0% NM 20.0% -88.0% -97.6% -97.6%

igita lP os t Interactive , Inc. US D DG L P OT C B B 4.2 0.06 -15.4% 22.2% 243.8% 1275. 0% 10.0% -44.4%

igita lT own, Inc. US D DG T W OT C B B 47. 9 1.75 25.0% 16.7% -30.0% -30.6% -56.3% -61.1%

olphin Digita l Media , Inc. US D DP DM OT C B B 23. 6 0.44 15.8% 10.0% -26.7% -13.7% -39.7% -61.1%

olith C o. L td. K R W A041060 K O S E 60. 8 1,035.00 10.7% 27.8% 28.6% 88.2% 50.0% -10.8%

xte ns ions , Inc. US D E XT I OT C P K 8.9 0.20 150.0% 150.0% 33.3% 0.0% 100.0% -80.2%

uid Mus ic C anada , Inc. C AD T S X:F MN T S X 62. 0 1.27 -9.3% 27.0% 81.4% 284.8% -17.5% -20.6%

rogs ter Interactive P ictures AG E UR F R G XT R A 69. 5 19.20 6.1% 32.4% 146.2% 324.8% 224.9% -3. 4%

amania Digita l E nte rtainment C o. , Ltd. T W D 6180 G T S M 233.1 50.40 0.0% -15.9% -9. 7% 90.2% 143.5% -26.7%

ameOn C o Ltd. J P Y 3812 T S E 104.5 100,600 -3.5% -2.3% -6. 9% 25.8% -23.2% -34.2%

eoS entric O yj E UR G E O1V HL S E 51. 5 0.04 -20.0% -20.0% -20.0% 0.0% -33.3% -42.9%

iant Interactive G roup, Inc. US D G A NY S E 1,732. 3 7.65 -2.0% -7.6% -17.7% 7.1% -4.5% -20.1%

igaMe dia L td. US D G IG M Na sdaqG S 261.1 4.79 0.4% -8.1% -24.0% -0.8% -51.5% -58.3%ravity C o. , L td US D G R V Y Na sdaqG M 50. 0 1.80 5.9% 7.1% 51.3% 181.3% 34.3% -31.6%

ree , Inc. J P Y T S E :3632 T S E 1,953. 5 8,120 -2.4% 2.4% 31.0% 69.2% NM -7. 2%

ungHo Online E nte rta inment, Inc. J P Y 3765 OS E 295.5 240,000 3.4% 18.8% 2.4% 108.7% 16.1% -14.3%

anbitS oft, Inc. K R W A047080 K O S E 71. 3 4,010 0.9% -8.9% -13.1% 25.3% 6.9% -39.6%

AC /InterActive C orp. US D IAC I Na sdaqG S 2,486. 5 18.78 0.6% 3.6% 15.1% 33.1% 10.2% -4. 0%

AS E nergy, Inc. US D IAS A .E OT C B B 9.5 0.14 3.8% 10.7% -32.5% 92.9% -50.0% -51.8%

eemedia Inc. C AD IE E T S XV 2.4 0.05 11.1% -28.6% -28.6% -37.5% -66.7% -73.7%

umbuck E nterta inment L imite d AUD AS X:J MB AS X 16. 7 0.40 8.1% 8.1% -4. 8% -11.1% -20.0% -34.4%

AB Distribution Inc. C AD T S X:K AB T S X 84. 6 1 0.0% 1.6% 6.6% 71.1% -8.5% -23.5%

ngs oft C o. Ltd. HK D 3888 S E HK 1,225. 4 9 4.1% 9.5% 63.3% 223.0% 227.8% -7. 9%

ngo Media C orporation C AD T S XV :LM T S XV 11. 6 1.00 11.1% -13.0% -4. 8% 14.9% -45.9% -46.2%

veW orld Inc. US D L V W D OT C P K 1.5 0.05 0.0% -9.1% -41.2% 25.0% -80.0% -80.0%

ookS mart, Ltd. US D L OO K Na sdaqG M 20. 0 1.17 0.0% -16.4% -10.0% 19.4% -59.7% -61.5%

agnitude Information S ys tems Inc. US D MAG Y OT C B B 4.1 0.01 0.0% 38.5% -30.8% -52.6% -54.5% -70.0%

ixi, Inc. J P Y 2121 T S E 891.0 538,000.00 -10.6% -12.2% 21.4% 84.9% -28.5% -33.5%

odern T imes G roup Mtg AB S E K MT G B OM 2,778. 9 300.00 3.1% 3.6% 37.9% 131.2% -3.5% -9. 9%

OK O.mobi Limited AUD MK B AS X 5.7 0.08 2.7% 18.5% 2.7% 28.3% 126.5% -23.0%

yria d G roup AG C HF MY R N S W X 91. 7 4.56 5.8% 6.0% -8. 8% 18.1% -46.4% -53.5%

E OW IZ G ames C orporation K R W A095660 K O S E 649.4 38,050.00 19.1% 15.8% 17.1% 103.5% 242.0% -9. 4%

etDragon W ebS oft, Inc. HK D 777 S E HK 400.3 5.87 1.2% 0.2% 14.9% 79.5% 15.6% -17.9%

eteas e .com Inc. US D N T E S Na sdaqG S 5,503. 2 42.52 1.1% -6.7% 12.1% 102.0% 84.0% -9. 4%

euL ion Incorporated C AD T S X:NLN T S X 116.7 1.10 -8.3% 37.5% 44.7% 189.5% NM -15.4%

eXplore C orporation US D N XP C OT C P K 30. 7 0.55 -11.3% -15.4% 10.0% -42.1% 10.0% -62.1%

gi G roup Inc. J P Y 2497 T S E 37. 0 27,800.00 -8.9% -13.1% -15.0% 68.3% -72.9% -78.2%

orthgate T e chnologie s Limited INR 590057 B S E 35. 8 49.95 23.6% 36.1% -3. 0% 63.0% -81.4% -84.0%pen T e xt C orp. US D O T E X Na sdaqG S 1,950. 1 34.73 -2.4% -9.3% 0.7% 15.8% 11.2% -13.6%

penwa ve S ys te ms Inc. US D O P W V Na sdaqG S 233.3 2.80 0.7% 12.9% 47.4% 270.9% 95.8% -10.5%

erfe ct W orld C o. , L td. US D P W R D Na sdaqG S 1,958. 9 39.83 0.3% 7.4% 70.5% 266.8% 82.0% -5. 0%

NI Digita l Media Inc. C AD T S XV :P N T S XV 55. 7 1.75 -3.3% 16.7% 16.7% 9.4% -41.7% -48.5%

uepas a C orp. US D Q P S A OT C B B 17. 8 1.40 0.0% 16.7% 77.2% 50.5% -58.2% -59.4%

AO R B C Information S ys tems US D R B C I R T S 145.7 1.05 0.0% 16.7% 6.6% 238.7% -86.2% -86.6%

handa Intera ctive E nterta inment L td. US D S NDA Na sdaqG S 3,317. 7 49.69 -2.9% -0.8% -20.2% 59.0% 77.9% -23.6%

hutterfly, Inc. US D S F L Y Na sdaqG S 339.6 13.34 -9.7% -13.4% -5. 9% 72.8% 26.6% -19.3%

K C ommunications C o. , L td. K R W A066270 K O S E 305.8 9,000.00 -3.2% -8.4% -21.7% 20.5% -26.8% -30.0%

NAP Interactive , Inc. US D S T V I OT C B B 5.4 1 25.0% 25.0% -33.3% -47.4% -43.8% -53.7%

NM G loba l Holdings US D S NMN OT C P K 0.0 0.00 -53.3% -58.0% 5.0% 110.0% -99.7% -99.8%

ocia l Media V enures , Inc. US D S MV I OT C P K 0.0 0.15 36.4% -50.0% 1400.0% -87.5% -40.0% -97.0%

ocia lwis e , Inc. US D S C LW OT C B B 24. 8 0.56 0.0% -26.3% -23.3% 40.0% -77.3% -78.5%

ohu.com Inc. US D S OHU Na sdaqG S 2,400. 9 62.63 0.3% -0.4% -7. 9% 42.4% 3.8% -11.6%

park Networks , Inc. US D L OV AME X 46. 3 2 -2.2% -11.4% -5. 9% -7.8% -48.6% -49.6%

pectrumDNA, Inc. US D S P XA OT C B B 10. 7 0 -2.2% 57.1% -40.5% 10.0% -62.7% -61.4%

ce nt Holdings L td. HK D 700 S E HK 29,970.5 128 11.0% 20.0% 49.4% 166.4% 112.1% -1. 4%

e P are nt C ompany US D K IDS .Q OT C P K 0.3 0.01 -21.4% 10.0% -37.1% 10.0% -99.4% -99.4%

he9 Limited US D N C T Y Na sdaqG S 193.7 7.72 -5.9% -21.2% -32.9% -18.7% -56.5% -61.1%

eS tree t.com, Inc. US D T S C M Na sdaqG M 74. 4 2.43 -3.6% 18.5% 24.6% 32.1% -60.9% -66.3%

S port Online AS NOK T OS O OT C NO 0.1 0.03 0.0% 0.0% 0.0% -25.0% -40.0% -40.0%

ee. C om, Inc. US D T R E E Na sdaqG M 80. 7 7.47 1.2% -22.8% -36.3% 88.2% -6.0% -42.8%

nis erve C ommunications C orp. C AD T S XV :US S T S XV 1.0 0.05 0.0% 0.0% -25.0% -10.0% -78.6% -82.0%

nited Online Inc. US D U NT D Na sdaqG S 613.7 7.32 7.2% -18.8% 4.1% 80.3% -28.4% -32.8%

OMO Me dia , Inc US D U OMO OT C B B 12. 0 0.14 -6.7% 0.0% -30.0% 100.0% -57.6% -86.8%

alueC lick Inc. US D V C LK Na sdaqG S 895.1 10.27 -2.3% -3.2% -9. 0% 75.9% -6.6% -17.5%

OIS , Inc. US D V OIS OT C B B 4.1 0.01 -16.7% -2.0% 42.9% 25.0% -68.8% -78.3%

ebzen Inc. US D W ZE N Na sdaqG M 34. 3 2.89 -1.0% -14.1% -32.2% 133.1% 57.9% -38.2%

izzard S oftware C orporation US D W ZE AME X 21. 7 0.43 -8.5% -14.0% -36.8% -2.3% -68.6% -75.1%

orlds .com Inc. US D W DDD OT C B B 5.2 0.10 11.1% -16.7% 0.0% -28.6% -70.6% -71.4%

oozyF ly, Inc. US D W ZY F OT C B B 2.6 0.15 0.0% NM 0.0% 0.0% NM -96.3%

ynds torm C orporation US D W Y ND OT C P K 1.8 0.10 0.0% 0.0% 233.3% -16.7% -83.3% -83.3%

NG AG E UR O 1B C XT R A 243.7 32.25 11.2% 15.6% -3. 7% 29.1% 0.8% -6. 3%

edangOnline C orp. K R W A052770 K O S E 110.4 9,080 2.0% -4.0% -1. 3% 39.7% 14.2% -26.8%

nk K ore a Inc. K R W A023770 K O S E 18. 5 4,260 2.4% -13.1% -38.2% 23.1% -58.6% -65.6%

igh 150.0% 650.0% 1400.0% 1275. 0% 553.9% -0. 9%

ow -53.3% -58.0% -79.2% -88.0% -99.7% -99.8%

verage 739.6 2.0% 9.0% 40.0% 77.6% -4.2% -47.0%edian 0.0% 0.0% 0.0% 39.7% -29.2% -44.8%

gure 19. Price Performanceource. Capital IQ

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Comparable Company Analysis > Web 2.0ummary by Co untry

ompany Name US D Market C ap ($m) Avg US D Market C ap ($m) US D L TM Total R ev ($m) US D LTM Total E B ITDA ($m) E B ITDA %

nited S tates 39 China 46,938.8 China 4,693.9 China 4,080.4 China 2,038.8 China 4

anada 10 United S tates 5,255.6 S weden 2,901.8 United S tates 3,887.4 S weden 299.6 Australia 3

hina 10 Japan 3,494.2 Japan 582.4 S weden 1,950.0 United S tates 289.4 Taiwan 3

outh K orea 8 S weden 2,901.8 Taiwan 500.1 Canada 1,015.7 Canada 200.3 Germanyapan 6 Canada 2,409.0 Hong Kong 278.7 S outh K orea 672.3 Japan 181.5 Japan

aiwan 3 Taiwan 1,500.4 Canada 240.9 Japan 616.5 S outh K orea 94.2 S weden

ustralia 2 S outh Korea 1,270.9 S outh K orea 158.9 Taiwan 379.1 Taiwan 56.2 Malaysia

ermany 2 Hong Kong 278.7 Italy 148.1 Hong Kong 361.6 Italy 31.1 Italy

witzerland 1 Germany 268.1 R ussia 145.7 Italy 236.5 Hong Kong 25.1 R ussia

ong Kong 1 Italy 148.1 United S tates 134.8 R ussia 150.9 R ussia 19.7 S outh K orea

inland 1 R ussia 145.7 Germany 134.0 India 81.9 Malaysia 11.0 Hong Kong

aly 1 S witzerland 90.4 S witzerland 90.4 Malaysia 76.5 Germany 10.3 S witzerland

nited Kingdom 1 Finland 64.3 Finland 64.3 Germany 60.8 Australia 3. 1 Canada -

ndia 1 Malaysia 34.8 Malaysia 34.8 S witzerland 40.0 S witzerland 0. 8 United S tates -

weden 1 India 28.3 India 28.3 Australia 16.3 Norway -1.1 India -

ussia 1 Australia 20.5 Australia 10.3 Finland 6. 1 United Kingdom -1.9 Norway -

Malaysia 1 United Kingdom 4. 0 United Kingdom 4. 0 Norway 2. 2 Finland -15.7 United Kingdom

orway 1 Norway 0. 1 Norway 0. 1 United Kingdom 0. 3 India -40.9 Finland

rand Total 90 Grand Total 64,853.7 Grand Total 720.6 Grand Total 13,634.4 Grand Total 3,201.5 Grand Total

gure 21. Comparison by Countryource. Capital IQ

Comparable Company Analysis > Web 2.0ummary by Exchange

ompany Name US D Market C ap ($m) Avg US D Market C ap ($m) US D L TM Total R ev ($m) US D LTM Total E B ITDA ($m) E B ITDA %

O T C B B 19 S E HK 29,755.1 S E HK 9,918.4 OM 1,950.0 NasdaqGS 1,760.5 NYS E 6

asdaqGS 14 NasdaqGS 22,686.9 OM 2,901.8 S E HK 535.7 S E HK 772.0 S E HK 4

O T C P K 11 T S E 3,199.8 NYS E 1,754.9 NasdaqGS 494.4 OM 299.6 AS X 3

OS E 6 OM 2,901.8 NasdaqGS 1,620.5 CM 236.5 TS E 161.9 GTS M 3

S E 5 NYS E 1,754.9 T S E 640.0 NYS E 198.5 NYS E 124.1 NasdaqGS 3

asdaqGM 5 GTS M 1,242.6 GTS M 621.3 R T S 150.9 KOS E 79.3 XTR A

S X 4 KOS E 1,171.1 OS E 294.3 OS E 109.0 GTS M 56.2 T S E

S XV 4 T S X 362.0 KOS E 195.2 T S E 101.5 CM 31.1 OS E

E HK 3 OS E 294.3 C M 148.1 KOS E 100.6 R TS 19.7 OM

ME X 2 NasdaqGM 285.5 R T S 145.7 GTS M 97.7 OS E 19.6 KLS E

S X 2 XTR A 268.1 XTR A 134.0 B S E 81.9 NasdaqGM 11.7 C M

TR A 2 O T C B B 197.6 T S X 90.5 NasdaqGM 81.8 KLS E 11.0 R T S

TS M 2 C M 148.1 S W X 90.4 KLS E 76.5 XTR A 10.3 NasdaqGM

WX 1 R TS 145.7 HLS E 64.3 T S X 46.7 AME X 6. 2 TS XV

LS E 1 S W X 90.4 NasdaqGM 57.1 S W X 40.0 AS X 3. 1 KOS E

M 1 TS XV 69.6 KLS E 34.8 XTR A 30.4 S W X 0. 8 S W X

S E 1 AME X 66.9 AME X 33.4 AME X 27.9 OTCNO -1.1 AME X -

YS E 1 HLS E 64.3 B S E 28.3 O T C P K 16.5 AI M -1.9 T S X -

OS E 1 O T C P K 61.3 TS XV 17.4 TS XV 12.0 TS X -4.2 O T C P K -

I M 1 KLS E 34.8 O T C B B 10.4 AS X 8. 1 TS XV -4.4 O T C B B -

OM 1 B S E 28.3 AS X 10.3 HLS E 6. 1 HLS E -15.7 B S E -

TS 1 AS X 20.5 O T C P K 5. 6 O T C B B 2. 3 O T C P K -34.1 O T C N O -

LS E 1 AI M 4. 0 AI M 4. 0 O T C N O 2. 2 B S E -40.9 HLS E #

O T C N O 1 O T C N O 0. 1 O T C N O 0. 1 AI M 0. 3 O T C B B -63.5 AI M #

rand Total 90 Grand Total 64,853.7 Grand Total 720.6 Grand Total 13,634.4 Grand Total 3,201.5 Grand Total

gure 22. Comparison by Exchange

ource. Capital IQ

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inancing - Las t Three Months (US $ m)in. Amount (Million) Type of financing

Month Company Name C ountry Angel/S eed S eries A S eries B S eries C S eries D G rand Tota

ul-09 Pandora Media US A 35.0 35. 0

Kontera Ltd. Is rael 15.5 15. 5

Ning US A 15. 0 15. 0

QuickPlay Media C anada 12. 0 12. 0

Causes US A 10.0 10. 0

Outspark US A 8. 3 8.3

ConnectEdu US A 8. 2 8.2

Acquia, Inc US A 8.0 8.0

SBNation US A 8. 0 8.0

MediaMath US A 6. 6 6.6

Metaversum G ermany 6.3 6.3

iMemories US A 6.2 6.2

Invodo US A 6.0 6.0

Jambool US A 5.0 5.0

Quikr India Pvt. Ltd. India 4. 1 4.1

OPEN Sports network US A 4. 0 4.0

StyleCaster US A 4. 0 4.0

Nexage US A 4. 0 4.0

TweetDeck UK 3. 2 3.2

B usca US A 2.6 2.6

Akademos US A 2. 5 2.5

ProtonMedia US A 2. 5 2.5

iLoop Mobile US A 2. 0 2.0

Comunitae S pain 1. 7 1.7

Aloqa G ermany 1. 5 1.5

Lat49 C anada 1. 5 1.5

Thread US A 1. 2 1.2

Tributes.com US A 1.2 1.2

CoTweet US A 1. 1 1.1

Cellufun US A 1.0 1.0

Clikthrough US A 1. 0 1.0

Cognitive Match Limited UK 1. 0 1.0

BookFresh US A 0. 5 0.5

People Capital US A 0.5 0.5

Masher Media US A 0. 3 0.3

ul-09 Total 65.0 11.1 36.8 51.5 27.0 191.4

ug-09 Turbine US A 50. 0 50. 0

Smith & Tinker US A 29. 0 29. 0

Mint US A 14.1 14. 1

RichRelevance US A 12. 5 12. 5

Traffiq US A 10. 0 10. 0

MediaMath US A 10.0 10. 0

Bill.com US A 8. 5 8.5

Edo Interactive US A 8. 5 8.5

InnoCentive US A 7.3 7.3

OneRiot US A 7. 0 7.0

Balihoo US A 7. 0 7.0

Boxee US A 6.0 6.0

Polyvore US A 5.6 5.6

Fanbase US A 5. 0 5.0

MOG US A 5. 0 5.0

Z2Live US A 3. 0 3.0

OurStage US A 3.0 3.0

KODA US A 3. 0 3.0

Scoreloop G ermany 2.8 2.8

Roblox US A 2. 2 2.2

iSocket US A 2. 0 2.0

Tremor Media US A 2. 0 2.0

RightsFlow US A 1. 5 1.5

Plista G ermany 1.4 1.4

ChessCube S outh Africa 1. 3 1.3

Linksify US A 0. 5 0.5

iSyndica US A 0. 4 0.4

ug-09 Total 25.8 11.5 77.6 43.6 50.0 208.5

ep-09 YuMe US A 5. 0 5.0

MashLogic US A 2. 5 2.5

Greystripe US A 2. 0 2.0

FourSquare US A 1. 4 1.4

EduFire US A 1. 3 1.3

ep-09 Total 5.2 7.0 12.2

rand Total 90.8 27.8 114.4 102.1 77.0 412.0

gure 23. Financing, Last Three Monthsource. Company reports

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Company Descriptions - Current Month Capital Market Activityompany HQ W ebs ite Des c ription

duFire United States www.edufi re .com Education Revolution, Inc. operates as an onl ine community that provides online li ve video tutoring services . I t offers tutoring services

students covering various languages and preparing students for exams on video chat sessions. The company was founded in 2007 an

based in S anta Monica, California.

ourSquare U ni te d S ta te s www. f ou rs q ua r e. c om F o ur s qu ar e S o lu ti on s I nc . de s ign s a nd de ve lo ps s o f twa re f or i ph on es . F o u rs q ua r e S ol uti on s I nc . i s ba s e d i n N e w Y o rk , N e w Y o rk .

reystripe United States www.greystr ipe.com Greystr ipe, Inc. operates an ad-supported mobi le games and appl ications di str ibution platform. The company provides onl ine gaming

game advertising solutions through publisher sites . Its AdW R AP product suite enables brand advertisers to communicate their brandmessages to mobile audience; publishers to serve ads through their games; and consumers to download games, as well as delivers im

videos, and scrolling banners to mobile games and applications. T he companys solutions als o include AdW RA P Campaign Manager,

advertising Web interface that allows advertising agencies a nd ad res ellers to create and monitor mobile in-game ad campaigns; AdW

Ca talog Program, which enables partners to distribute a mobile game catalog; and AdW R AP for Publishers platform that provides mo

game publishers an automated process, which ad-enables mobile games and applications. It serves developers, carriers and distribut

game players, and consumer Web sites. The company is bas ed in S an Francisco, California.

MashLogic United States www.mashlog ic.com MashLogic Inc. offers mashes to personal ize the applicat ions for the users and b loggers . I t adds re levant l inks to Websi tes , personali

Web pages, increases visibility and reach of content and brand, and enriches Web with links to sources. The company was founded in

and is bas ed in Menlo Pa rk, C alifornia.

owPublic C a na da www. n owpu bl ic . co m N owP u bl ic T ec hn ol ogi es , I nc . , a pa r ti ci pa to ry ne ws n etwo rk , own s an d o pe ra te s N owP u bli c. c om pla tf or m f or citi ze n j ou rn al is m . T he

company provides politics, culture, entertainment, and life photos and video headlines. It serves Internet users, bloggers, and photogra

enthusiasts. The company was founded in 2005 a nd is based in V ancouver, Canada. As of September 2, 2009, NowPublic Tec hnolog

Inc. operates as a s ubsidiary of The W ashington Examiner.

kype L ux em bo ur g www. s k y pe . c om S k y pe T ec hn ol ogi es S . A . pr ov id es S k y pe , a s of twa re th at e na bl es in div idu al s a nd bu s in es s e s to m ak e f re e v ide o a nd v oi ce c a lls , s e n

instant mess ages, and share files with other S kype users . It a lso enables to make calls to landlines and mobiles internationally. T he

company also provides headsets, Webcams, and phones through its online shop. It s erves us ers in Argentina, B razil, C hile, C olombia

Mexico, Peru, and Venezuela. T he company was founded in 2003 and is based in Luxembourg. As of October 14, 2005, S kype Tec hn

S .A. is a s ubsidiary of eBay Inc.

uMe United States www.yumenetworks .com YuMe, Inc. operates as a v ideo adverti s ing network on Web. I t offers ad management system that enables adverti sers and publ ishers

identify, classify, and track content through digital media platforms, such as Web, downloads, mobile, and IPTV. The company also en

publishers to organize video on their site into content channels, such as automotive, financial services, lifestyle, news, music, sports,

entertainment, and family friendly. In addition, it offers real-time targeting, measurement, and optimization; content distribution and vira

advertising opportunities; a suite of interactive ad placements; and video monetization services. Further, the company provides a beha

targeting system that enables advertisers to target their messages to viewers on a national scale based on video viewing interests and

purchase intent. YuMe , Inc. was founded in 2004 a nd is headquartered in R edwood City, C alifornia.

gure 24. Company Descriptionsource. Company reports, Capital IQ, Crunchbase

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recommendations expressed in this research report.

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