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www.mackieresearch.com

Web 2.0 Weekly

DST cashes up and then spends more

Copyright 2000-2010, Mackie Research Capital Corporation, All rights reserved

April 20, 2010

David Shore, CFA, MBA [email protected]

Damian Wojcichowsky, CFA 416.860.7652

This report has been created by Analysts that are employed by Mackie Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report.www.mackieresearch.com

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www.mackieresearch.com2

Key Developments Tencent (SEHK:700) invests $300mm in Digital Sky Technologies (investor in Facebook, Zynga etc.)

DST invests $135mm in Groupon at $1.2b valuation

Frogster Interactive Pictures AG (XTRA:FRG) reported revenue for 2009 rose 6x to Euro16.7mm withnet profit of Euro2.3mm

Webzen Inc. (KOSE: A069080) signed an agreement to acquire NHN Games Co., Ltd. forapproximately KRW 240b

The9 Limited (NasdaqGS:NCTY) reported consolidated earnings results for the fourth quarter and fullyear ended December 31, 2009. For the quarter, the company reported loss from operations of RMB

220.2mm on revenue of RMB22.5mm

NetDragon WebSoft, Inc. (SEHK:777) announced unaudited consolidated earnings results for the fourthquarter ended December 31, 2009. For the quarter, the company reported operating profit of RMB1,584,000 on revenues of RMB 134,190,000.

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Aggregate Public Data

Web 2.0 Public Companies Total Median Max Min# Companies 98 - - -

Market Cap (US$ mm) 81,864.6 76.0 37,060.2 1.7

Revenue (US$ mm) 90,908.6 22.7 67,563.7 0.0

1 Year revenue growth 4.3% 1178.9% -91.4%

EBITDA as % of revenue - 5.9% 62.7% -91.9%

Net cash (US$ mm) 9,008.8 1.5 1,754.9 -732.7TEV/Revenue - 1.9x 46.6x 0.1x

TEV/EBITDA - 8.7x 43.5x 0.1x

P/E - 14.1x 92.7x 0.0x

Relative to 52 week high -32.1% -1.9% -98.1%

Source: CapitalIQ

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Public Company Distribution

26

16

10

6 65

43 3 3

2 2 2 21 1 1 1 1 1 1 1

0

5

10

15

20

25

30

Gaming

SocialNetworking

Media

Diversified

Marketing

Mobile

Advertising

Infrastructure

SMS/Voice

Enterprise

InternetRetail

VirtualWorld

Dating

Music

Ve

rticalCommunities

Collaboration

Podcasting

Search

Video

Learning

Payment

FinancialServices

By Sector By Country

0

5

10

15

20

25

30

35

40

45

UnitedStates

Canada

China

SouthKorea

Japan

Taiwan

Germany

Australia

Un

itedKingdom

Poland

Malaysia

Russia

Finland

Sweden

HongKong

India

Italy

Switzerland

Israel

Source: CapitalIQ

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Valuation Dashboard 1 Week

Rising

38%

Falling

52%

Flat

10%

Rising

53%

Falling43%

Flat4%

Rising

54%

Falling

41%

Flat

5%

Market Cap

Rising57%

Falling43%

Flat

0%

EV/Revenue

EV/EBITDA P/E

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7/33


Median EV/Revenue

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

3.5x

4.0x

4.5x

5.0x

3/2/2009

3/9/2009

3/16/2009

3/23/2009

3/30/2009

4/6/2009

4/13/2009

4/20/2009

4/27/2009

5/4/2009

5/11/2009

5/18/2009

5/25/2009

6/1/2009

6/8/2009

6/15/2009

6/22/2009

6/29/2009

7/6/2009

7/13/2009

7/20/2009

7/27/2009

8/3/2009

8/10/2009

8/17/2009

8/24/2009

8/31/2009

9/7/2009

9/14/2009

9/21/2009

9/28/2009

10/5/2009

10/12/2009

10/19/2009

10/26/2009

11/2/2009

11/9/2009

11/16/2009

11/23/2009

11/30/2009

12/7/2009

12/14/2009

12/21/2009

12/28/2009

1/4/2010

1/11/2010

1/18/2010

1/25/2010

2/1/2010

2/8/2010

2/15/2010

2/22/2010

3/1/2010

3/8/2010

3/15/2010

3/22/2010

3/29/2010

4/5/2010

4/12/2010

4/19/2010

373837393939404039414142434444444445474848484750535356585761636364616162666868697168646870716873717475777575747678788280

Multiple(x)

Median Long-term average

# companies

Source: CapitalIQ

Revenue multiplesrecovering but

below LT Average

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Median EV/EBITDA

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

3/2/2009

3/9/2009

3/16/2009

3/23/2009

3/30/2009

4/6/2009

4/13/2009

4/20/2009

4/27/2009

5/4/2009

5/11/2009

5/18/2009

5/25/2009

6/1/2009

6/8/2009

6/15/2009

6/22/2009

6/29/2009

7/6/2009

7/13/2009

7/20/2009

7/27/2009

8/3/2009

8/10/2009

8/17/2009

8/24/2009

8/31/2009

9/7/2009

9/14/2009

9/21/2009

9/28/2009

10/5/2009

10/12/2009

10/19/2009

10/26/2009

11/2/2009

11/9/2009

11/16/2009

11/23/2009

11/30/2009

12/7/2009

12/14/2009

12/21/2009

12/28/2009

1/4/2010

1/11/2010

1/18/2010

1/25/2010

2/1/2010

2/8/2010

2/15/2010

2/22/2010

3/1/2010

3/8/2010

3/15/2010

3/22/2010

3/29/2010

4/5/2010

4/12/2010

4/19/2010

212020222223232222232423222424262626262625262628302830333436403738363839383737404140404141414342434342484847484949474745

Multiple(x)


# companies

Source: CapitalIQ

EV/EBITDA multiplesremain depressedbelow LT average

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Median P/E

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

30.0x

3/2/2009

3/9/2009

3/16/2009

3/23/2009

3/30/2009

4/6/2009

4/13/2009

4/20/2009

4/27/2009

5/4/2009

5/11/2009

5/18/2009

5/25/2009

6/1/2009

6/8/2009

6/15/2009

6/22/2009

6/29/2009

7/6/2009

7/13/2009

7/20/2009

7/27/2009

8/3/2009

8/10/2009

8/17/2009

8/24/2009

8/31/2009

9/7/2009

9/14/2009

9/21/2009

9/28/2009

10/5/2009

10/12/2009

10/19/2009

10/26/2009

11/2/2009

11/9/2009

11/16/2009

11/23/2009

11/30/2009

12/7/2009

12/14/2009

12/21/2009

12/28/2009

1/4/2010

1/11/2010

1/18/2010

1/25/2010

2/1/2010

2/8/2010

2/15/2010

2/22/2010

3/1/2010

3/8/2010

3/15/2010

3/22/2010

3/29/2010

4/5/2010

4/12/2010

4/19/2010

171920191818181919192019181919192021242525252526262629303029323132323536363636373839373737363536323130333232323232323130

Multiple(x)


# companies

Source: CapitalIQ

P/E multiples alsobelow LT average

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Average Valuation by Sector

-

5.0

10.0

15.0

20.0

25.0

Infrastructure

SMS/Voice

SocialNetworking

Diversified

Music

Learning

Marketing

Mobile

VerticalCommunities

Gaming

Podcasting

Collaboration

Search

Video

Advertising

InternetRetail

Enterprise

Dating

Media

FinancialServices

VirtualWorld

2 3 7 4 2 1 5 4 1 20 1 1 1 1 4 2 3 2 9 1 1# Companies

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

Search

Enterprise

Diversified

Mobile

Media

Collaboration

InternetRetail

SocialNetworking

FinancialServices

Gaming

Marketing

Dating

Advertising

1 2 4 1 6 1 2 5 1 12 3 1 1# Companies

EV/Revenue EV/EBITDA

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11/33


EV/Revenue Ranking

0.10.20.20.20.40.40.40.40.40.40.50.50.50.50.60 .70.70.80.80.80.90.90.9 1.0 1.0 1.0 1.2 1.2 1.2

1.3 1.3 1.5 1.6 1.6 1.6 1.7 1.8 1.9 1.92.12.12.22.22 .32.32.32.42.6 2.7

3.03.23.23.23.33.34.14.54.7

5.45.45.56.06.4

7.88.49.39.49.9

12.4

15.4

20.020.6

22.2

31.4

46.6

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

PerfectWorldCo.,Ltd.

NgiGroupInc.

AsknetAG

CyberplexInc.

R

ealNetworksInc.

JumbuckEntertainmentLimited

Betaw

aveCorporation

Tree.Com,Inc.

UniserveCommunicationsCorp.

Ac

tozSoftCo.,Ltd.

GluMobile,Inc.

GameOnCoLtd.

Points

InternationalLtd.

GigaMediaLtd.

OpenwaveSystemsInc.

NorthgateTec

hnologiesLimited

DADASpA

InternetGroupSA

IAC

/InterActiveCorp.

Th

eStreet.com,Inc.

AOL,Inc.

CDCCorp.

U

nitedOnline,Inc.

CornerW

orldCorporation

AQInteractive,Inc.

TheNewYorkTimesCompany

OAORBCInformationSystems

BeyondCommerce,Inc.

GamaniaDigitalEntertainmentCo.,Ltd.

infoGROUP,Inc.

HanbitSoft,Inc.

YDOnlineCorp.

ValueClick,Inc.

Spa

rkNetworks,Inc.

NetDragonWebSoft,Inc.

YnkKoreaInc.

Shutterfly,Inc.

ScoreMediaInc.

SNA

PInteractive,Inc.

PN

IDigitalMediaInc.

VeltiPlc

ModernTim

esGroupMtgAB

NeuLionIncorporated

XINGAG

OrientedMediaGroupBerhad

UOMOMedia,Inc

GungHoOnlineEntertainment,Inc.

SKCommunicationsCo.,Ltd.

Sohu.comInc.

MyriadGroupAG

WebzenInc.

OpenTextCorp.

iseemediaInc.

NEOWIZG

amesCorporation

WizzardSoftw

areCorporation

TaleoCorp.

DigitalPostInteractive,Inc.

Web

MediaBrandsInc

KingsoftCorporationLimited

Chan

gyou.comLimited

LingoM

ediaCorporation

Accelerize

NewMedia,Inc.

Mixi,Inc.

FrogsterIntera

ctivePicturesAG

Un

ilavaCorporation

HUGHE

STelematics,Inc.

FluidM

usicCanada,Inc.

Gree,Inc.

ChineseGamerInternational

GeoSentricOyj

PaidInc.

MOKO.mobiLimited

TencentHoldingsLtd.

BrightThingsplc

SpectrumDNA,Inc.

Source: CapitalIQ

Spectrum has highestrevenue multiple

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12/33


EV/EBITDA Ranking

0.1 0.92.1 2.2 2.3 2.6

4.55.7 6.2

6.9 7.1 7.2 7.5 7.5 7.87.9 8.2 8.4 8.4 8.6 8.7 9.7 10.3

10.711.8 12.1

12.813.413.914.014.0

16.5 16.616.8

21.322.9

28.9

31.6

39.6

43.5

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0



GameOnCoLtd.

ActozSoftCo.,Ltd.

CyberplexInc.

AOL,Inc.

U

nitedOnline,Inc.

ValueClick,Inc.

Sohu.comInc.

YDOnlineCorp.


DADASpA

infoGROUP,Inc.

SparkNetworks,Inc.

TheNewYork

TimesCompany

CDCCorp.


XINGAG

PNIDigitalMediaInc.

Changyou.comLimited

NetDrag

onWebSoft,Inc.

Tree.Com,Inc.

VeltiPlc

GungHoOnlineE

ntertainment,Inc.

OpenTextCorp.

NEOWIZG

amesCorporation

KingsoftCo

rporationLimited

ScoreMediaInc.

Shutterfly,Inc.

IAC

/InterActiveCorp.

Openwa

veSystemsInc.

YnkKoreaInc.

ModernTim

esGroupMtgAB

Gree,Inc.

Mixi,Inc.


Th

eStreet.com,Inc.

TaleoCorp.


Tenc

entHoldingsLtd.

Excluding EV/EBITDA > 100xSource: CapitalIQ

Tencent hashighest valuation

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13/33


P/E Ranking

1.8 1.9 2.1 2.54.4

6.3 6.48.3

10.5 11.2 11.5 11.6 11.914.0 14.3

18.2 20.420.9 22.4

26.129.8

33.235.6

40.4

56.4 56.6

61.2

88.1

92.7

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0


ShandaInteractiveE

ntertainmentLtd.

GiantInteractiveGroup,Inc.

Netease.comInc.


CyberplexInc.

GigaMediaLtd.

YDOnlineCorp.

U

nitedOnline,Inc.

DADASpA

AOL,Inc.

Changyou.comLimited

GameOnCoLtd.

Sohu.comInc.

ValueClick,Inc.

KingsoftCo

rporationLimited

CDCCorp.

VeltiPlc


NetDrag

onWebSoft,Inc.


Gree,Inc.

NEOWIZG

amesCorporation

OpenTextCorp.

Tenc

entHoldingsLtd.

Mixi,Inc.

GungHoOnlineE

ntertainment,Inc.

HanbitSoft,Inc.

ActozSoftCo.,Ltd.

Source: CapitalIQ

Actoz has highestP/E

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14/33


Total Market Capitalization - $80B

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

4/27/2009

5/4/2009

5/11/2009

5/18/2009

5/25/2009

6/1/2009

6/8/2009

6/15/2009

6/22/2009

6/29/2009

7/6/2009

7/13/2009

7/20/2009

7/27/2009

8/3/2009

8/10/2009

8/17/2009

8/24/2009

8/31/2009

9/7/2009

9/14/2009

9/21/2009

9/28/2009

10/5/2009

10/12/2009

10/19/2009

10/26/2009

11/2/2009

11/9/2009

11/16/2009

11/23/2009

11/30/2009

12/7/2009

12/14/2009

12/21/2009

12/28/2009

1/4/2010

1/11/2010

1/18/2010

1/25/2010

2/1/2010

2/8/2010

2/15/2010

2/22/2010

3/1/2010

3/8/2010

3/15/2010

3/22/2010

3/29/2010

4/5/2010

4/12/2010

4/19/2010

94 94 94 94 93 94 94 94 94 94 94 94 94 94 94 94 94 94 94 93 94 94 94 94 94 94 94 94 94 95 95 97 97 97 97 97 97 97 97 97 97 97 97 98 98 98 98 98 98 98 98 98

(US$m)

# companies

Source: CapitalIQ

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15/33


Total Market Cap by Sector

-

5,000.0

10,000.0

15,000.0

20,000.0

25,000.0

30,000.0

35,000.0

40,000.0

45,000.0

Diversified

Ga

ming

M

edia

SocialNetwo

rking

Collaboration

Mark

eting

Enterprise

InternetRetail

Search

M

obile

SMS/Voice

M

usic

FinancialServices

D

ating

VirtualWorld

Video

Advertising

VerticalCommunities

Pay

ment

Infrastructure

Podca

sting

Lea

rning

6 26 10 16 1 6 3 2 1 5 3 2 1 2 2 1 4 1 1 3 1 1# Companies

26 Gaming companies totalingover $17b in market cap

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Market Cap Ranking

0

1,000

2,000

3,000

4,000

5,000

6,000

Broad

WebAsiaInc.

UO

MOMedia,Inc

CornerWor

ldCorporation


MobileDataCorp.

Betawav

eCorporation

BeyondC

ommerce,Inc.

DigitalPostInteractive,Inc.

En2GoInt

ernational,Inc.

Kiwibox.Com,Inc.

W

orlds.comInc.

KentInternationa

lHoldingsInc.

Spec

trumDNA,Inc.

RealValueEstates,Inc.

OrientedMedia

GroupBerhad

BrightThingsplc

SaharaMedia

Holdings,Inc.

SNAPInteractive,Inc.

LingoMed

iaCorporation

iseemediaInc.

VOIS,Inc.

MOK

O.mobiLimited


IA

SEnergy,Inc.

InternetGroupSA

NorthgateTechnologiesLimited

WizzardSoftwareCorporation

AccelerizeNe

wMedia,Inc.

LookSmart,Ltd.

DolphinDig

italMedia,Inc.

Y

nkKoreaInc.

AsknetAG

NeXploreCorporation

Socialwise,Inc.

G

luMobile,Inc.

WebMe

diaBrandsInc

MultipliedMed

iaCorporation

Unilav

aCorporation

CyberplexInc.

G

eoSentricOyj

DigitalTown,Inc.

Q

uepasaCorp.

PNIDigitalMediaInc.

G

ravityCo.,Ltd

Sc

oreMediaInc.

PointsInternationalLtd.

FrogsterInteractiv

ePicturesAG

NgiGroupInc.

NeuLionIncorporated

SparkNetworks,Inc.

Moggle,Inc

YD

OnlineCorp.

AQIn

teractive,Inc.

H

anbitSoft,Inc.

PaidInc.

Tree.Com,Inc.

FluidMusicCanada,Inc.

DADASpA

Actoz

SoftCo.,Ltd.

Ga

meOnCoLtd.

TheS

treet.com,Inc.

WebzenInc.

G

igaMediaLtd.

The9Limited

VeltiPlc

MyriadGroupAG

XINGAG

OAORBCInform

ationSystems

Openwave

SystemsInc.

GamaniaDigitalEntertainmentCo.,

HUGHESTelematics,Inc.

NetDragon

WebSoft,Inc.

CDCCorp.

GungHoOnlineEntertainment,Inc.

infoGROUP,Inc.


RealNetworksInc.

S

hutterfly,Inc.

Unit

edOnline,Inc.

NEOWIZGam

esCorporation

V

alueClick,Inc.

KingsoftCorporationLimited


Mixi,Inc.

TaleoCorp.

Changyo

u.comLimited

PerfectW

orldCo.,Ltd.

TheNewYorkTimesCompany

GiantInteractiveGroup,Inc.

Sohu.comInc.

Op

enTextCorp.

Gree,Inc.

IAC/InterActiveCorp.

AOL,Inc.

ShandaInteractiveEntertainmentLtd.

ModernTimes

GroupMtgAB

Netease.comInc.

Tencen

tHoldingsLtd.

Source: CapitalIQ

Tencents $37b market capdominates group

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17/33


Price Performance 1 week

Rising

39%Flat13%

Falling

48%

Price Momentum Negative momentum with 61% of

stocks falling or flat over past week

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Average Price Performance 1 Week, By Sector

18.5%

9.7%

6.6%

2.8% 2.4%1.1% 0.3% 0.1% 0.0%

-0.4% -0.6%

-2.1% -2.4% -2.5% -3.3% -3.5% -3.7%-5.4%

-7.2%

-11.2%-11.9%-12.9%-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Media

Search

Video

Mobile

Vertical

Co

mmunities

Financial

Services

Diversified

Gaming

Learning

Enterprise

Co

llaboration

Marketing

InternetRetail

Infrastructure

Payment

Social

N

etworking

P

odcasting

Music

A

dvertising

S

MS/Voice

Vi

rtualWorld

Dating

# companies

Source: CapitalIQ

Media shows biggestgains

8/9/2019 10-04-20 Web 2.0 Weekly

19/33


Price Performance 1 Week

-60.0%

-40.0%

-20.0%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

BWB

A

OMED

IA

ST

VI

IE

E

TSXV:US

S

SHH

D

WDD

D

UNL

A

GLU

U

SPX

A

CHIN

.A

RBCI

DGL

P

UOM

O

PAY

D

CM:D

A

SOH

U

388

8

249

7

GIG

M

77

7

PWR

D

A052790

618

0

GTSM:3083

SFL

Y

FR

G

TSE:363

2

59005

7

O1BCWZ

E

AO

L

SCLW

NCT

Y

70

0

G

A

TSC

M

NTE

S

MYR

N

SND

A

VCL

K

TSX:FM

N

RNW

K

212

1

MK

B

OTE

X

TSXV:P

N

KIW

B

ASX:JM

B

BWA

V

GEO1

V

ETGI

RVL

U

CWR

L

DB:M0

C

TSX:C

X

TSXV:L

M

TSXV:MM

C

VE

L

VO

IS

IUS

A

KNT

H

TRE

E

XTRA:A5A

LO

V

CYO

U

WSE:IG

R

AIM:BG

T

LOO

K

HUT

C

A095660

383

8

A047080

WEB

M

MTG

B

IACI

A023770

NXP

C

TLE

O

MBYL

NY

T

UNT

D

TSX:PT

S

TSX:NL

N

TSX:SC

R

ACLZ

QPS

A

GRV

Y

KOSE:A069080

A066270

A052770

381

2

DPD

M

376

5

OPW

V

DGTW

IASC

.A

BYO

C

Source: CapitalIQ

8/9/2019 10-04-20 Web 2.0 Weekly

20/33


Price Performance (Top 10)

1 Month

0%

20%

40%

60%

80%

100%

120%

140%

160%

IASEnergy,

Inc.

Beyond

Commerce,

Inc.

DigitalTown,

Inc.

GameOn

CoLtd.

Dolphin

Digital

Media,Inc.

Internet

GroupSA

HanbitSoft,

Inc.

Quepasa

Corp.

MobileData

Corp.

Openwave

Systems

Inc.

3 Month

0%

500%

1000%

1500%

2000%

2500%

3000%

3500%

OAORBC

Information

Systems

IASEnergy,

Inc.

Beyond

Commerce,

Inc.

Unilava

Corporation

SNAP

Interactive,Inc.

NgiGroupInc.

AQInteractive,

Inc.

TheStreet.com,

Inc.

Worlds.com

Inc.

QuepasaCorp.

6 Month

0%

500%

1000%

1500%

2000%

2500%

3000%

OAORBC

Information

Systems

AQInteractive,

Inc.

QuepasaCorp.

OrientedMedia

GroupBerhad

SNAP

Interactive,Inc.

VOIS,Inc.

NgiGroupInc.

Betawave

Corporation

SK

Communications

Co.,Ltd.

VeltiPlc

1 Year

0%

1000%

2000%

3000%

4000%

5000%

6000%

OAORBC

Information

Systems

Quepasa

Corp.

DigitalPost

Interactive,

Inc.

FluidMusic

Canada,

Inc.AQ

Interactive,

Inc.

VOIS,Inc.

Openwave

Systems

Inc.

VeltiPlc

Tencent

Holdings

Ltd.

PaidInc.

Source: CapitalIQ

8/9/2019 10-04-20 Web 2.0 Weekly

21/33


Price Performance (Bottom 10)

1 Week

-60.0%

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

SpectrumDNA,

Inc.

GluMobile,Inc.

Unilava

Corporation

Worlds.comInc.

SaharaMedia

Holdings,Inc.

Uniserve

Communications

Corp.

iseemediaInc.

SNAP

Interactive,Inc.

OrientedMedia

GroupBerhad

BroadWebAsia

Inc.

1 Month

-60.0%

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

Worlds.comInc.

CyberplexInc.

iseemediaInc.

UOMOMedia,

Inc

SpectrumDNA,

Inc.

SaharaMedia

Holdings,Inc.

Uniserve

Communications

Corp.

BroadWebAsia

Inc.

En2Go

International,Inc.

CornerWorld

Corporation

6 Month

-100.0%

-90.0%

-80.0%

-70.0%

-60.0%

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

DADASpA

GigaMediaLtd.

Wizzard

Software

Corporation

CyberplexInc.

Northgate

Technologies

Limited

CornerWorld

Corporation

En2Go

International,

Inc.

UOMOMedia,

Inc

BroadWebAsia

Inc.

SaharaMedia

Holdings,Inc.

1 Year

-120.0%-100.0%

-80.0%

-60.0%

-40.0%

-20.0%

0.0%

Wizzard

Software

Corporation

GigaMediaLtd.

Northgate

Technologies

Limited

MobileData

Corp.

UOMOMedia,

Inc

CornerWorld

Corporation

En2Go

International,

Inc.

SaharaMedia

Holdings,Inc.

Beyond

Commerce,

Inc.

BroadWebAsia

Inc.

Source: CapitalIQ

8/9/2019 10-04-20 Web 2.0 Weekly

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Capital Market Activity (Financing, M&A)

8/9/2019 10-04-20 Web 2.0 Weekly

23/33


Financing Momentum

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Oct-04

Dec-04

Feb-05

Apr-05

Jun-05

Aug-05

Oct-05

Dec-05

Feb-06

Apr-06

Jun-06

Aug-06

Oct-06

Dec-06

Feb-07

Apr-07

Jun-07

Aug-07

Oct-07

Dec-07

Feb-08

Apr-08

Jun-08

Aug-08

Oct-08

Dec-08

Feb-09

Apr-09

Jun-09

Aug-09

Oct-09

Dec-09

Feb-10

Apr-10

(US$m

)

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

(US$m

)

Total (LTM) Average Size (LTM)

Sharp rise drivenby large DSTtransactions

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Financing activity Current MonthMonth Company Name Country Sector Angel/Seed PIPE Series A Series B Series C Series D Grand Total

Apr-10 Digital Sky Technologie s Russia Diversif ied 300.0 300.0

Groupon USA Social Commerce 135.0 135.0

Vidyo USA Video 25.0 25.0

LendingClub USA Financial Services 24.5 24.5

MokaFive USA Enterprise 21.0 21.0

BlackArrow USA Advertising 20.0 20.0

Xobni USA Social Netw orks 16.2 16.2

Box.net USA Collaboration 15.0 15.0

Prosper.com USA Financial Services 14.6 14.6

Knewton USA Online Learning 12.5 12.5

Brightcove USA Video 12.0 12.0

EdgeCast CDN USA Media 10.0 10.0

Tynt Canada Infrastructure 8.0 8.0

PubMatic USA Advertising 7.5 7.5

Searchandise Comm erce USA Advertising 7.0 7.0

Stitcher USA Media 6.0 6.0

Cramster USA Vertical Communities 6.0 6.0

quirky USA Social Netw orks 6.0 6.0

TellApart USA Analytics 4.8 4.8

Daily Grommet USA Social Commerce 3.4 3.4

gdgt USA Vertical Communities 3.2 3.2

TweetPhoto USA Micromedia 2.6 2.6

Assistly USA Enterprise 2.2 2.2

Spredfast USA Analytics 1.6 1.6

FreshPlanet USA Gaming 1.5 1.5

NearVerse USA Location-based SNS 1.0 1.0

ZoomSafer USA Mobile 1.0 1.0

Kontagent USA Analytics 1.0 1.0

DIYSEO USA Search 1.0 1.0

MyLikes USA Advertising 0.6 0.6

Plyce France Location-based SNS 0.4 0.4

Apr-10 Total 4.0 300.0 23.1 30.2 286.7 26.6 670.5

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Financing activity Current Month, By Sector

Diversified3%

Social

Commerce

6%

Media

9%

Financial

Services

6%

Video

6%

Advertising

12%

Enterprise6%Social

Networks

6%

Collaboration

3%

Online

Learning

3%

VerticalCommunities

6%

Infrastructure

3%

Analytics

9%

Gaming

6%

Micromedia

3%

Location-

based SNS

6%

Search

3%

Mobile3%

Travel

3%

Other

29%

Diversified

38%

Social

Commerce

18%

Media

15%

# Deals $ Raised

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Financing Activity last three months

12.8

4.75.5

6.8

8.9

5.7

10.2

12.5

9.18.2

5.4

21.6

5.8

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10

(US$m)

0.0

5.0

10.0

15.0

20.0

25.0

(US$m)

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

Dec-09 includes $180m Zynga investment

Apr-10 includes $300m DST investment

$370mm excl DST,average $13.2m

8/9/2019 10-04-20 Web 2.0 Weekly

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Capital Market Activity Ranking by Sector, last three months

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

Diversified

M

edia

Video

Social

Comm

erce

Advertising

Search

Ga

ming

So

cial

Networks

Financial

Services

M

obile

MobileAd

Crowdso

urced

Conte

nt

Enterprise

Analytics

Online

Lea

rning

Internet

Retail

Vertical

Commu

nities

Music

Mobile

Payment

Collabo

ration

Loca

tion-

based

SNS

VirtualWorld

Microblog

Infrastructure

W

idget

Travel

SMS/Voice

Online

Calendar

Blog

Microm

edia

OnlineD

ating

Aggreg

ation

1 6 9 3 16 8 7 9 7 6 2 4 2 5 2 2 5 2 1 1 4 3 2 3 1 3 1 1 1 1 1 1

(US$m)

# companies

Advertising has mostdeals in last 3 months

8/9/2019 10-04-20 Web 2.0 Weekly

28/33


Top 10 Deals (2010 YTD)

300.0

135.0

25.0 24.5 21.0 20.0 16.2 15.0 14.6 12.5

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

DigitalSky

Technologies

Groupon

Vidyo

LendingClub

MokaFive

BlackArrow

Xobni

Box.net

Prosper.com

Knewton

100

80

50

36.533

21 2018

8

3

0

20

40

60

80

100

120

Ankeena

Networks

Mochi

Media

Aardvark S tud ioNow Saf-T-Net C&C

Media

Red 5

Studios,Inc.

Multicast

Media

AdMarvel NuConomy

Financings Acquisitions

DST involved in 2largest deals YTD

8/9/2019 10-04-20 Web 2.0 Weekly

29/33


Upcoming events/earnings

Company Date Time Quarter Conf Call Details

Modern Times Group Mtg AB (OM:MTG B) 20-Apr-10 3:00 PM (CET) Q1/10 N/A

Changyou.com Limited (NasdaqGS:CYOU) 26-Apr-10 7:00 AM (EDT) Q1/10 852-3002-1672

Sohu.com Inc. (NasdaqGS:SOHU) 26-Apr-10 8:30 AM (EDT) Q1/10 1-877-941-6009

Shutterf ly, Inc. (NasdaqGS:SFLY) 28-Apr-10 2:00 PM (PDT) Q1/10 970-315-0490

Openw ave Systems Inc. (NasdaqGS:OPWV) 28-Apr-10 2:00 PM (PDT) Q3/10 877-941-1427

IAC/InterActiveCorp. (NasdaqGS:IACI) 28-Apr-10 11:00 a.m. EST Q1/10 http://w w w .iac.com/Investors

Open Text Corp. (NasdaqGS:OTEX) 29-Apr-10 5:00 PM (EDT) Q3/10 800-814-4860

Tree.Com, Inc. (NasdaqGM:TREE) 30-Apr-10 11:00 a.m. EST Q1/10 866-564-7440

Source: CapitalIQ

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8/9/2019 10-04-20 Web 2.0 Weekly

31/33

8/9/2019 10-04-20 Web 2.0 Weekly

32/33


Public Company Listing cont.

Company Name Ticker Exchange

Trading

Currency HQ

Current

Price

US$ Market

Cap (mm) Employees

Socialwise, Inc. SCLW OTCBB USD United States 0.58 28.1 NA

Sohu.com Inc. SOHU NasdaqGS USD China 49.76 1,879.3 3,997

Spark Networks, Inc. LOV AM EX USD United States 3.76 77.4 NA

SpectrumDNA, Inc. SPXA OTCBB USD United States 0.10 6.5 7

Taleo Corp. TLEO NasdaqGM USD United States 26.87 1,065.6 916

Tencent Ho ldings Ltd. 700 SEHK HKD China 157.30 37,060.2 7,515

The New York Times Company NYT NYSE USD United States 12.11 1,762.6 7,665

The9 Limited NCTY NasdaqGS USD China 6.84 174.5 1,626

TheStreet.com, Inc. TSCM NasdaqGM USD United States 3.61 113.9 NA

Tree.Com, Inc. TREE NasdaqGM USD United States 9.14 100.6 700

Unilava Corporation UNLA OTCBB USD United States 0.44 44.0 39

Uniserve Communications Corp. TSXV:USS TSXV CAD Canada 0.08 1.9 NA

United Online, Inc. UNTD NasdaqGS USD United States 8.11 702.0 1,699

UOM O M edia, Inc UOM O OTCBB USD Canada 0.02 1.7 NA

ValueClick, Inc. VCLK NasdaqGS USD United States 10.09 820.5 1,086Velti P lc VEL AIM GBP United Kingdom 3.11 178.4 450

VOIS, Inc. VOIS OTCBB USD United States 0.01 9.0 2

WebM ediaBrands Inc WEBM NasdaqGS USD United States 1.00 37.4 NA

Webzen Inc. KOSE:A069080 KOSE KRW South Korea 13,450 142.6 NA

Wizzard Software Corporation WZE AM EX USD United States 0.24 15.9 NA

Worlds.com Inc. WDDD OTCBB USD United States 0.10 5.4 1

XING AG O1BC XTRA EUR Germany 27.39 191.5 NA

YD Online Corp. A052770 KOSE KRW South Korea 6,240 83.8 NA

Ynk Korea Inc. A023770 KOSE KRW South Korea 3,230 23.0 NA

8/9/2019 10-04-20 Web 2.0 Weekly

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Disclaimer

RELEVANT DISCLOSURES APPLICABLE TO: NONE

1. None applicable.

ANALYST CERTIFICATION

Each analyst of Mackie Research Capital Corporation whose name appears in this reporthereby certifies that (i) the recommendations and opinions expressed in this researchreport accurately reflect the analysts personal views and (ii) no part of the researchanalysts compensation was or will be directly or indirectly related to the specificconclusions or recommendations expressed in this research report.

This report has been created by Analysts that are employed by Mackie Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report.Information about Mackie Research Capital Corporations Rating System, the distribution of our research to clients and the percentage of recommendations which are in each of our r ating categoriesis available on our web site at www.mackieresearch.com .The information contained in this report has been drawn from sources believed to be reliable but its accuracy or completeness is not guaranteed, nor in providing it does Mackie Research CapitalCorporation assume any responsibility or liability. Mackie Research Capital Corporation, its directors, officers and other employees may, from time to time, have positions in the securities mentionedherein. Contents of this report cannot be reproduced in whole or in part without the expressed permission of Mackie Research Capital Corporation. (U.S. Institutional Clients Research CapitalU.S.A. Inc. (a wholly owned subsidiary of Mackie Research Capital Corporation) accepts responsibility for the contents of this report subject to the terms & limitations set out above. Firms orinstitutions receiving this report should effect transactions in securities discussed in the report through Research Capital U.S.A. Inc., a Broker-Dealer Registered with the United States Securities andExchange Commission).

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10-04-20 web 2.0 weekly

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