10 06-29 web 2.0 weekly

www.mackieresearch.com

Web 2.0 Weekly

“World Cup of Financings as ROW Participates”

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

June 29, 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

www.mackieresearch.com2

Key Developments (past week)

Deals (M&A, Finance) – Worldwide Financings – World Cup Related?

� Alloy, a provider of news and commentary concerning New Media, was acquired by ZelnickMedia for $127 mm.

� Facebook’s implied valuation rose to $24 bn as Elevation Partners purchased 5 mm shares of the company for $120 mm in the secondary market.

� Danish Skype competitor, Vopium, received $16.5 mm in financing from Indian financier, Raghuvinder Kataria.

� Social networking software developer based in France, Pearltrees, raised $1.6 mm.

� PapayaMobile, mobile application software company based in China, raised $4 mm.

� Two Israeli mobile developers received funding this week, including Perfecto Mobile ($4 mm) and Snaptu ($6 mm).

Financial Results/Guidance/Partnerships/Product� Multiplied Media (TSXV:MMC) announced the availability of local weather functionality

for the iPhone version of its Poynt local search mobile application.


Public Company Data


Aggregate Public Data

Web 2.0 Public Companies Total Median Max Min# Companies 101 - - -

Market Cap (US$ mm) 76,167.1 73.3 30,613.7 1.2

Revenue (US$ mm) 23,488.2 56.7 3,057.7 0.0

1 Year revenue growth 5.7% 8961.6% -100.0%

EBITDA as % of revenue - 13.3% 63.1% -99.5%

Net cash (US$ mm) 9,046.6 2.3 1,836.0 -670.8

TEV/Revenue - 1.9x 47.4x 0.0x

TEV/EBITDA - 8.8x 49.3x 0.5x

P/E - 16.8x 94.5x 0.0x

Relative to 52 week high -40.9% -1.6% -95.6%

Source: CapitalIQ


Public Company Distribution

By Sector By Country

Source: CapitalIQ

28

16

10

8

65

3 3 3 32 2 2 2

1 1 1 1 1 1 1 1

0

5

10

15

20

25

30

Ga

min

g

So

cia

l N

etw

ork

ing

Me

dia

Div

ers

ifie

d

Ma

rketin

g

Mobile

Infr

astr

uctu

re

SM

S/V

oic

e

Ente

rpris

e

Ad

vert

isin

g

Inte

rnet

Reta

il

Vir

tual W

orl

d

Datin

g

Mu

sic

Ve

rtic

al C

om

munit

ies

Co

llab

ora

tio

n

Po

dca

stin

g

Lea

rnin

g

Vid

eo

Sea

rch

Pay

ment

Fin

ancia

l S

erv

ices

0

5

10

15

20

25

30

35

40

45

Unit

ed S

tate

s

Cana

da

Chin

a

So

uth

Kore

a

Japa

n

Ta

iwa

n

Hong K

ong

Ge

rma

ny

Po

land

Au

str

alia

Un

ited

Kin

gdom

Italy

Fin

lan

d

Sw

ed

en

India

Ru

ssia

Mala

ysia

Sw

itz

erla

nd


Valuation Dashboard – 1 Week

Rising

25%

Falling

68%

Flat

7%

Rising

23%

Falling

75%

Flat

2%

Rising

28%

Falling

68%

Flat

4%

Market Cap

Rising

32%

Falling

68%

Flat

0%

EV/Revenue

EV/EBITDA P/E


Median EV/Revenue

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

3.5x

4.0x

4.5x

5.0x5

/11

/20

09

5/1

8/2

00

95

/25

/20

09

6/1

/20

09

6/8

/20

09

6/1

5/2

00

96

/22

/20

09

6/2

9/2

00

97

/6/2

00

97

/13

/20

09

7/2

0/2

00

97

/27

/20

09

8/3

/20

09

8/1

0/2

00

98

/17

/20

09

8/2

4/2

00

98

/31

/20

09

9/7

/20

09

9/1

4/2

00

99

/21

/20

09

9/2

8/2

00

91

0/5

/20

09

10

/12

/20

09

10

/19

/20

09

10

/26

/20

09

11

/2/2

00

91

1/9

/20

09

11

/16

/20

09

11

/23

/20

09

11

/30

/20

09

12

/7/2

00

91

2/1

4/2

00

91

2/2

1/2

00

91

2/2

8/2

00

91

/4/2

01

01

/11

/20

10

1/1

8/2

01

01

/25

/20

10

2/1

/20

10

2/8

/20

10

2/1

5/2

01

02

/22

/20

10

3/1

/20

10

3/8

/20

10

3/1

5/2

01

03

/22

/20

10

3/2

9/2

01

04

/5/2

01

04

/12

/20

10

4/1

9/2

01

04

/26

/20

10

5/3

/20

10

5/1

0/2

01

05

/17

/20

10

5/2

4/2

01

05

/31

/20

10

6/7

/20

10

6/1

4/2

01

06

/21

/20

10

6/2

8/2

01

0

383839393940394042424445464646464749515151535456616161616366666666666670717073747069727272747476807880808181808282858384

Mu

ltip

le (

x)

Median Long-term average

# companies

Source: CapitalIQ

Revenue multiples down slightly, still

well below LT average


Median EV/EBITDA

0. 0x

5. 0x

10. 0x

15. 0x

20. 0x

25. 0x

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

4/26/2010

5/3/2010

5/10/2010

5/17/2010

5/24/2010

5/31/2010

6/7/2010

6/14/2010

6/21/2010

6/28/2010

20 20 22 22 23 2322 2224 2423 2324 24 26 26 2626 2525 26 28 3030 34 3336 36 38 3839 40 39 4141 39 3939 43 43 4142 43 43 42 43 43 4546 45 50 5050 53 52 52 51 51 4951

Multiple (x)


# companies

Source: CapitalIQ

EV/EBITDA multiples down, depressed below LT average


Median P/E

0. 0x

5. 0x

10. 0x

15. 0x

20. 0x

25. 0x

30. 0x

35. 0x

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

4/26/2010

5/3/2010

5/10/2010

5/17/2010

5/24/2010

5/31/2010

6/7/2010

6/14/2010

6/21/2010

6/28/2010

19 18 19 18 19 1919 1920 2019 1819 19 20 20 2125 2425 25 27 2827 30 3132 32 32 3333 35 37 3939 39 4039 40 41 4240 40 40 38 37 38 3433 32 35 3535 35 35 35 35 34 3434

Multiple (x)


# companies

Source: CapitalIQ

P/E multiples also down and below LT average


Average EV/Revenue – by Sector

36.3

13.4

9.98.4

5.3 4.7 4.3 4.2 3.7 3.5 3.3 3.2 2.8 2.7 2.5 2.3 2.0 1.9 1.8 1.40.4

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0V

irtu

al W

orld

Infr

astr

uctu

re

Div

ers

ifie

d

Learn

ing

Socia

l N

etw

ork

ing

Music

Vert

ical C

om

munitie

s

Searc

h

Gam

ing

Mobile

SM

S/V

oic

e

Mark

eting

Podcasting

Advert

isin

g

Colla

bora

tion

Media

Inte

rnet

Reta

il

Vid

eo

Ente

rprise

Dating

Fin

ancia

l S

erv

ices

1 2 7 1 8 2 1 1 21 4 3 6 1 3 1 9 2 1 3 2 1# Companies


Average EV/EBITDA – by Sector

49.3

45.4

18.2

15.6

11.7 11.7 11.7 11.09.7 9.3 8.9

-

10.0

20.0

30.0

40.0

50.0

60.0

Fin

ancia

l S

erv

ices

Searc

h

Ente

rprise

Mobile

Gam

ing

Inte

rnet

Reta

il

Div

ers

ifie

d

Socia

l N

etw

ork

ing

Advert

isin

g

Media

Colla

bora

tion

1 1 2 2 14 2 5 6 1 6 1# Companies


Average P/E – by Sector

93.0

56.3

39.1

34.9

29.0

25.5

15.013.6 13.2

-

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

Internet Retail Enterprise Collaboration Diversified Marketing Social

Networking

Advertising Media Gaming

2 3 1 8 6 16 3 10 28# Companies


47

36

33

26

16

13

11 11 1110

98

7 7 7 7 65

4 4 4 4 4 3 3 3 3 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

NeXplore Corporation

Worlds.com Inc.

SocialGO PLC

SpectrumDNA, Inc.

Tencent Holdings Ltd.

Paid Inc.

GeoSentric Oyj

Beyond Commerce, Inc.

Gree, Inc.

MOKO.mobi Limited

Chinese Gamer International

Lingo Media Corporation

Fluid Music Canada, Inc.

DigitalPost Interactive, Inc.

Dena Co. Ltd.

TransGaming, Inc.

Accelerize New Media, Inc.

HUGHES Telematics, Inc.

WebMediaBrands Inc

SK Communications Co., Ltd.

Changyou.com Limited

Taleo Corp.

Mixi, Inc.

Frogster Interactive Pictures AG

Kingsoft Corporation Limited

Wizzard Software Corporation

iseemedia Inc.

Open Text Corp.

NEOWIZ Games Corporation

ePro Ltd.

Modern Times Group Mtg AB

XING AG

GungHo Online Entertainment, Inc.

Shutterfly, Inc.

Sohu.com Inc.

Velti Plc

Score Media Inc.

UOMO Media, Inc

PNI Digital Media Inc.

NeuLion Incorporated

ValueClick, Inc.

Myriad Group AG

HanbitSoft, Inc.

Webzen Inc.

Unilava Corporation

Platforma Mediowa Point Group S.A.

Spark Networks, Inc.

YD Online Corp.

Gamania Digital Entertainment Co., Ltd.

Hutchison Telecommunications Hong

infoGROUP, Inc.

SNAP Interactive, Inc.

NetDragon WebSoft, Inc.

Ynk Korea Inc.

Oriented Media Group Berhad

CornerWorld Corporation

OAO RBC Information Systems

Internet Group SA

AQ Interactive, Inc.

The New York Times Company

CDC Corp.

TheStreet.com, Inc.

Northgate Technologies Limited

IAC/InterActiveCorp.

Points International Ltd.

Cyberplex Inc.

United Online, Inc.

Uniserve Communications Corp.

AOL, Inc.

DADA SpA

Glu Mobile, Inc.

GigaMedia Ltd.

Actoz Soft Co., Ltd.

Tree.Com, Inc.

Openwave Systems Inc.

GameOn Co Ltd.

RealNetworks Inc.

Jumbuck Entertainment Limited

Asknet AG

LookSmart, Ltd.

EV/Revenue Ranking

Source: CapitalIQ

NeXplore has highest revenue multiple at 47x


49.3

45.4

38.0

30.729.1

21.319.018.317.6

16.315.915.314.814.614.013.612.812.010.0 9.7 9.2 8.9 8.8 8.6 8.4 8.3 8.3 8.1 7.9 7.6 7.6 7.5 7.4 7.2 6.7 6.7 6.4 5.6 5.4 4.8 3.7

2.5 2.21.1

0.0

10.0

20.0

30.0

40.0

50.0

60.0

Tree.Com, Inc.

SK Communications Co., Ltd.

HanbitSoft, Inc.


Taleo Corp.


Gree, Inc.


Myriad Group AG

Modern Times Group Mtg AB

Mixi, Inc.

Shutterfly, Inc.

Dena Co. Ltd.

TheStreet.com, Inc.

AQ Interactive, Inc.

Openwave Systems Inc.

Score Media Inc.

YD Online Corp.

IAC/InterActiveCorp.

Cyberplex Inc.

GungHo Online Entertainment, Inc.

Open Text Corp.

Platforma Mediowa Point Group S.A.


DADA SpA


XING AG

PNI Digital Media Inc.

Velti Plc




CDC Corp.

Spark Networks, Inc.

infoGROUP, Inc.

ValueClick, Inc.


Hutchison Telecommunications Hong Kong Holdings Ltd.


Sohu.com Inc.

United Online, Inc.

Actoz Soft Co., Ltd.

AOL, Inc.

GameOn Co Ltd.

EV/EBITDA Ranking

Excluding EV/EBITDA > 100xSource: CapitalIQ

Tree.com leads the group at 49.3x


94.5 93.0

57.2 55.4

48.846.9

40.939.1

37.0

32.5 32.4 31.2

24.7 24.6 24.3

19.517.3 16.3 15.5 15.0

13.2 13.1 12.9 11.1 9.5 9.4 8.86.0

3.3 2.2 2.0 1.9

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

ePro Ltd.

Shutterfly, Inc.

Points International Ltd.

CDC Corp.

Mixi, Inc.

infoGROUP, Inc.


Open Text Corp.

Gree, Inc.

Dena Co. Ltd.




Velti Plc



Hutchison Telecommunications Hong Kong Holdings Ltd.


ValueClick, Inc.

Cyberplex Inc.

Sohu.com Inc.

DADA SpA


AOL, Inc.

GameOn Co Ltd.


United Online, Inc.


Jumbuck Entertainment Limited

Netease.com Inc.

Giant Interactive Group, Inc.

Shanda Interactive Entertainment Ltd.

P/E Ranking

Source: CapitalIQ

ePro has the highest P/E at 94.5x


Total Market Capitalization

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

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

4/26/2010

5/3/2010

5/10/2010

5/17/2010

5/24/2010

5/31/2010

6/7/2010

6/14/2010

6/21/2010

6/28/2010

98 98 98 98 98 98 98 98 98 97 98 98 98 98 99 99 99 99 99 99 99100100100100100100100100100100100100101101101101101101101101101101101101101101101101101101101

(US$m)

# companies

Source: CapitalIQ

Total market cap decreases to $76 bn


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

40,000.0D

ivers

ifie

d

Gam

ing

Media

Socia

l N

etw

ork

ing

Colla

bora

tion

Mark

eting

Ente

rprise

Inte

rnet

Reta

il

Searc

h

Mobile

Music

SM

S/V

oic

e

Advert

isin

g

Dating

Fin

ancia

l S

erv

ices

Vid

eo

Virtu

al W

orld

Vert

ical C

om

munitie

s

Paym

ent

Infr

astr

uctu

re

Podcasting

Learn

ing

8 28 10 16 1 6 3 2 1 5 2 3 3 2 1 1 2 1 1 3 1 1# Companies

Eight Diversified companies totaling $35 bn in market cap


Market Cap Ranking

0

1,000

2,000

3,000

4,000

5,000

6,000

Tencent H

old

ings L

td.

Dena C

o. Ltd

.N

ete

ase.c

om

Inc.

Gre

e, In

c.

Modern

Tim

es G

roup M

tg A

BIA

C/Inte

rActiv

eC

orp

.S

handa Inte

ractiv

e E

nte

rtain

ment Ltd

.A

OL, In

c.

Open T

ext C

orp

.G

iant In

tera

ctiv

e G

roup, In

c.

Sohu.c

om

Inc.

The N

ew

York

Tim

es C

om

pany

Changyou.c

om

Lim

ited

Perf

ect W

orld C

o., L

td.

Hutc

his

on T

ele

com

munic

atio

ns H

ong K

ong H

old

ings

Tale

o C

orp

.V

alu

eC

lick, In

c.

NE

OW

IZ G

am

es C

orp

ora

tion

SK

Com

munic

atio

ns C

o., L

td.

Chin

ese G

am

er

Inte

rnatio

nal

Mix

i, In

c.

Shutterf

ly, In

c.

Kin

gsoft C

orp

ora

tion L

imite

dU

nite

d O

nlin

e, In

c.

info

GR

OU

P, In

c.

RealN

etw

ork

s Inc.

CD

C C

orp

.G

ungH

o O

nlin

e E

nte

rtain

ment, Inc.

Gam

ania

Dig

ital E

nte

rtain

ment C

o., L

td.

NetD

ragon W

ebS

oft, In

c.

Velti

Plc

Myriad G

roup A

GX

ING

AG

Openw

ave S

yste

ms Inc.

Flu

id M

usic

Canada, In

c.

OA

O R

BC

Info

rmatio

n S

yste

ms

Gig

aM

edia

Ltd

.W

ebzen Inc.

The9 L

imite

dA

Q Inte

ractiv

e, In

c.

TheS

treet.com

, In

c.

HU

GH

ES

Tele

matic

s, In

c.

Acto

z S

oft C

o., L

td.

Poin

ts Inte

rnatio

nal L

td.

HanbitS

oft, In

c.

Gam

eO

n C

o L

td.

Cyberp

lex Inc.

DA

DA

SpA

Paid

Inc.

Tre

e.C

om

, In

c.

Spark

Netw

ork

s, In

c.

Score

Media

Inc.

Fro

gste

r In

tera

ctiv

e P

ictu

res A

GN

euLio

n Incorp

ora

ted

YD

Onlin

e C

orp

.Q

uepasa C

orp

.P

NI D

igita

l Media

Inc.

Moggle

, In

cN

gi G

roup Inc.

Gra

vity

Co., L

tdP

latform

a M

edio

wa P

oin

t G

roup S

.A.

Glu

Mobile

, In

c.

WebM

edia

Bra

nds Inc

Dig

italT

ow

n, In

c.

Tra

nsG

am

ing, In

c.

eP

ro L

td.

Multi

plie

d M

edia

Corp

ora

tion

Socia

lwis

e, In

c.

LookS

mart

, Ltd

.G

eoS

entr

ic O

yj

Accele

rize N

ew

Media

, In

c.

Ynk K

ore

a Inc.

Asknet A

GN

eX

plo

re C

orp

ora

tion

VO

IS, In

c.

Nort

hgate

Technolo

gie

s L

imite

dW

izzard

Softw

are

Corp

ora

tion

Lin

go M

edia

Corp

ora

tion

Dolp

hin

Dig

ital M

edia

, In

c.

Jum

buck E

nte

rtain

ment Lim

ited

iseem

edia

Inc.

Unila

va C

orp

ora

tion

Inte

rnet G

roup S

AS

ocia

lGO

PLC

Kent In

tern

atio

nal H

old

ings Inc.

Dig

italP

ost In

tera

ctiv

e, In

c.

MO

KO

.mobi L

imite

dW

orlds.c

om

Inc.

SN

AP

Inte

ractiv

e, In

c.

Beyond C

om

merc

e, In

c.

YouB

last G

lobal,

Inc.

En2G

o Inte

rnatio

nal,

Inc.

Spectr

um

DN

A, In

c.

Kiw

ibox.C

om

, In

c.

IAS

Energ

y, In

c.

Unis

erv

e C

om

munic

atio

ns C

orp

.O

riente

d M

edia

Gro

up B

erh

ad

Corn

erW

orld C

orp

ora

tion

Bro

adW

ebA

sia

Inc.

UO

MO

Media

, In

cM

obile

Data

Corp

.

Source: CapitalIQ

Tencent’s $31 bn market cap dominates group


Price Performance – 1 Week

Price Momentum• Negative price momentum, with 66% of

stocks falling over the past week.

• The market has oscillated between up and down weeks fairly consistently in the last two months.

Rising

25%

Flat

9%

Falling

66%


Average Price Performance – 1 Week, by Sector

14.6%13.7%

7.4%5.9%

3.3%1.5% 0.7% 0.0%

-0.4% -0.6%-2.0% -2.4% -3.1% -3.2%

-4.5% -4.7% -4.9%-6.0%

-8.3% -8.8%-10.5%

-13.3%-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

Vid

eo

Vir

tua

l W

orl

d

Ad

vert

isin

g

Infr

astru

ctu

re

En

terp

rise

Sea

rch

Ma

rketin

g

Po

dca

stin

g

Inte

rnet R

eta

il

Co

llab

ora

tion

Pa

ym

en

t

Ga

min

g

Mo

bile

Div

ers

ifie

d

Datin

g

Mu

sic

Fin

an

cia

l

Se

rvic

es

Ve

rtic

al

Co

mm

un

itie

s

Le

arn

ing

Me

dia

So

cia

l

Ne

two

rkin

g

SM

S/V

oic

e

Source: CapitalIQ

Video sector shows highest weekly returns


Price Performance – 1 Week

-80.0%

-60.0%

-40.0%

-20.0%

0.0%

20.0%

40.0%

60.0%

YB

LT

BW

BA

IAS

C.A

BY

OC

UN

LA

VO

IST

SX

V:T

NG

24

97

DP

DM

MK

BT

SX

V:M

MC

SE

HK

:80

86

PW

RD

OM

ED

IAN

XP

CK

IWB

UO

MO

WS

E:IG

RA

SX

:JM

BH

UT

CA

IM:S

GO

TS

XV

:LM

TS

E:2

43

2D

GT

WC

YO

US

OH

UR

NW

KG

RV

YW

EB

MA

05

27

70

KO

SE

:A0

69

08

0S

TV

IV

EL

AO

LG

TS

M:3

08

3T

RE

EW

SE

:PG

MN

TE

SV

CL

K3

88

83

81

2X

TR

A:A

5A

RB

CI

IEE

61

80

NY

TL

OV

UN

TD

GA

LO

OK

TS

XV

:PN

MT

G B

TS

E:3

63

2IA

CI

DG

LP

SC

LW

GIG

MT

SX

:CX

70

0A

02

37

70

SN

DA

MY

RN

A0

52

79

0A

09

56

60

OT

EX

OP

WV

IUS

AG

EO

1V

MB

YL

TS

X:P

TS

CW

RL

ET

GI

WZ

ES

EH

K:2

15

DB

:M0

CO

1B

C

TS

X:F

MN

TS

CM

A0

66

27

0T

LE

OS

FL

Y7

77

GL

UU

NC

TY

21

21

CM

:DA

TS

X:S

CR

38

38

PA

YD

A0

47

08

0F

RG

CH

IN.A

KN

TH

TS

XV

:US

S3

76

55

90

05

7Q

PS

AT

SX

:NL

NS

PX

AA

CL

ZW

DD

D

Source: CapitalIQ


Price Performance (Top 10)

1 Month

0%5%

10%15%20%25%30%35%40%45%50%

Un

ise

rve

Co

mm

un

ica

tion

s

Co

rp.

SN

AP

Inte

ract

ive

, In

c.

Gre

e,

Inc.

Ha

nb

itS

oft

, In

c.

SK

Co

mm

un

ica

tion

s

Co

., L

td.

Act

oz S

oft

Co

.,

Ltd

.

Cyb

erp

lex

Inc.

AQ

In

tera

ctiv

e,

Inc.

Ne

uL

ion

Inco

rpo

rate

d

Fro

gste

r

Inte

ractiv

e

Pic

ture

s A

G

3 Month

0%20%

40%60%

80%100%

120%140%

160%180%

Beyond

Com

merc

e,

Inc.

eP

ro L

td.

SK

Com

munic

ations

Co.,

Ltd

.

Poin

ts

Inte

rnational Ltd

.

Unis

erv

e

Com

munic

ations

Corp

.

Glu

Mobile

, In

c.

Velti P

lc

Gre

e,

Inc.

AQ

Inte

ractive,

Inc.

LookS

mart

, Ltd

.

6 Month

0%

500%

1000%

1500%

2000%

2500%

3000%

OA

O R

BC

Info

rmation

Syste

ms

eP

ro L

td.

Beyond

Com

merc

e,

Inc.

AQ

Inte

ractive,

Inc.

Score

Media

Inc.

Unis

erv

e

Com

munic

ations

Corp

.

Velti P

lc

Quepasa C

orp

.

SN

AP

Inte

ractive,

Inc.

Poin

ts

Inte

rnational Ltd

.1 Year

0%

500%

1000%

1500%

2000%

2500%

3000%

3500%

4000%

4500%

OA

O R

BC

Info

rma

tio

n

Sys

tem

s

eP

ro L

td.

Qu

ep

asa

Co

rp.

Ve

lti P

lc

Flu

id M

usi

c

Ca

na

da

, In

c.

De

na

Co

. L

td.

AQ

In

tera

ctiv

e,

Inc.

SK

Co

mm

un

ica

tion

s

Co

., L

td.

Gre

e,

Inc.

Tra

nsG

am

ing

,

Inc.

Source: CapitalIQ


Price Performance (Bottom 10)

1 Week

-70.0%

-60.0%

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

MO

KO

.mobi

Lim

ited

Multi

plie

d

Media

Corp

ora

tion

Dolp

hin

Dig

ital

Media

, In

c.

Ngi G

rou

p Inc.

Tra

nsG

am

ing,

Inc.

VO

IS,

Inc

.

Unila

va

Corp

ora

tion

Be

yond

Co

mm

erc

e,

Inc.

IAS

En

erg

y,

Inc.

Bro

adW

ebA

sia

Inc.

YouB

last

Glo

ba

l, In

c.

1 Month

-90.0%

-80.0%

-70.0%

-60.0%

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

Lin

go M

edia

Co

rpora

tion

Beyo

nd

Co

mm

erc

e,

Inc

.

VO

IS, In

c.

Dolp

hin

Dig

ital

Me

dia

, In

c.

Ge

oS

entr

ic O

yj

Bro

adW

eb

Asia

Inc.

Mo

bile

Data

Corp

.

Corn

erW

orl

d

Corp

ora

tion

YouB

last

Glo

ba

l, In

c.

Unila

va

Co

rpora

tion

6 Month

-100.0%

-90.0%

-80.0%

-70.0%

-60.0%

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

Sp

ectr

um

DN

A,

Inc.

Lin

go

Me

dia

Co

rpora

tion

VO

IS, In

c.

YouB

last

Glo

bal,

Inc.

MO

KO

.mo

bi

Lim

ited

En2G

o

Inte

rnatio

na

l,

Inc.

UO

MO

Me

dia

,

Inc

Corn

erW

orld

Corp

ora

tion

Un

ilava

Co

rpora

tion

Bro

adW

eb

Asia

Inc

.1 Year

-120.0%

-100.0%

-80.0%

-60.0%

-40.0%

-20.0%

0.0%

Moggle

, In

c

Lin

go M

edia

Corp

ora

tion

Dolp

hin

Dig

ital

Media

, In

c.

Spectr

um

DN

A,

Inc.

IAS

Energ

y,

Inc.

Beyond

Com

merc

e,

Inc.

Corn

erW

orld

Corp

ora

tion

UO

MO

Media

,

Inc

En2G

o

Inte

rnatio

nal,

Inc.

Bro

adW

ebA

sia

Inc.

Source: CapitalIQ


Capital Market Activity (Financing, M&A)


Financing Activity – Current MonthCom pany Nam e C ountry Sector Acquis ition Angel/Seed Debt financing Ser ies A Series B Series C Series D Series E NA Grand Total

Zynga US A Gaming 147.0 147.0

Alloy US A Media 126.5 126.5

Invite Media US A Analytics 70.0 70.0

FetchBack US A Advertis ing 40.0 40.0

Playdom US A Gaming 33.0 33.0

HauteL ook US A Internet R etail 31.0 31.0

Challenge Games US A Gaming 20.5 20.5

Mytopia Is rael Gaming 18.0 18.0

Vopium Denmark SMS /V oice 16.5 16.5

ReputationDefender US A Comment/Reputation 15.0 15.0

Brand.net US A Advertis ing 14.0 14.0

Marin Softw are US A Advertis ing 11.2 11.2

GetJ ar Netw ork s US A Mobile 11.0 11.0

Book Rente r US A S oc ial Commerce 10.0 10.0

Apptera US A Mobile Ad 10.0 10.0

Rock You US A Widget 10.0 10.0

Extrem eReach US A Advertis ing 9.0 9.0

Machinim a.com US A V irtual World 9.0 9.0

Safe tyWeb US A Social Netw orks 8.0 8.0

Kudzu Inte ractive US A Financial S ervices 7.0 7.0

Trans pera US A Mobile Ad 7.0 7.0

Curs e US A Social Netw orks 6.0 6.0

Snaptu Is rael Mobile 6.0 6.0

L ijit Netw orks US A S earch 6.0 6.0

Adis n US A Advertis ing 5.5 5.5

Connotate US A Analytics 5.3 5.3

Res onate Netw ork s US A Advertis ing 5.0 5.0

Bebo UK Social Netw orks 5.0 5.0

Metacafe US A V ideo 5.0 5.0

BeachMint US A S oc ial Commerce 5.0 5.0

BigDoor Media US A Media 5.0 5.0

Spons orPay Germany V irtual Goods 4.6 4.6

LucidMedia US A Advertis ing 4.5 4.5

Tr iggit US A Advertis ing 4.2 4.2

Perfecto Mobile Is rael Mobile 4.0 4.0

PapayaMobile China Mobile 4.0 4.0

Magnetic US A Advertis ing 4.0 4.0

Gogobot US A Travel 4.0 4.0

Giiv US A S oc ial Commerce 3.4 3.4

Nuxeo France Enterpris e 3.3 3.3

Tre fis US A Analytics 3.2 3.2

Attr ibutor US A Analytics 3.2 3.2

ViaCL IX US A V ideo 3.1 3.1

Heyzap US A Gaming 3.0 3.0

Metam ark ets US A Advertis ing 2.5 2.5

Snaptic US A Mobile 2.3 2.3

WOWIO US A Internet R etail 1.7 1.7

uC irrus US A Infras tructure 1.7 1.7

HitFix US A Media 1.6 1.6

Pear ltrees France S ocial Netw orks 1.6 1.6

Ce llixis US A Comment/Reputation 1.5 1.5

Dilithium Netw ork s US A V ideo 1.5 1.5

Schoology US A Online Learning 1.3 1.3

Thum btack US A Crow ds ourced Content 1.2 1.2

SoGeo Netherlands Location-bas ed S NS 0.8 0.8

Rum m ble UK Location-bas ed S NS 0.8 0.8

Team Snap US A V ertical Communities 0.7 0.7

285.5 6.0 1.5 58.4 70.2 76.0 181.9 10.0 55.6 745.1


Financing Activity – Current Month, by Sector

Other

24%

Gaming

30%

Media

18%

Advertising

13%

Internet Retail

4%Analytics

11%

$ Raised # Deals

Other

57%

Gaming

9%

Media

5%

Advertising

17%

Analytics

9%

Internet Retail

3%


5.4

6.3

8.8

6.4

9.6

12.2

7.8

10.3

5.7

13.9

5.5

9.0

4.5

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

900.0

1000.0

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

(US

$m

)

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

(US

$m

)

Total Average per Deal LTM Total Average***Dec-09 includes $180m Zynga investment

Apr-10 includes $300m DST investment

Jun-10 includes $147m Zynga investment**Excludes Dec-09, Apr-

10

Financing Activity

June financing turning out to be one of the strongest aggregate deal value

months in the year


0.0

100.0

200.0

300.0

400.0

500.0

600.0

Gam

ing

Media

Div

ers

ified

Mobile

Colla

bora

tion

Socia

l Com

merc

e

Advert

isin

g

Cro

wdsourc

ed

Conte

nt

Analy

tics

Vid

eo

Inte

rnet R

eta

il

Socia

l Netw

ork

s

Fin

ancia

l Serv

ices

Virtu

al W

orld

Ente

rprise

Wid

get

Vert

ical C

om

muniti

es

Mobile

Ad

Infr

astr

uctu

re

Com

ment/R

eputa

tion

SM

S/V

oic

e

Mobile

Paym

ent

Virtu

al G

oods

Searc

h

Onlin

e L

earn

ing

Music

Aggre

gatio

n

Tra

vel

Cla

ssifi

ed

Publis

hin

g

Locatio

n-b

ased S

NS

Mic

roblo

g

Mic

rom

edia

Blo

g

15 11 1 13 5 9 20 3 14 9 5 11 5 5 5 2 9 3 5 2 1 1 2 5 2 2 1 4 1 1 4 1 1 1

(US

$m

)

# companies

Capital Market Activity Ranking – by Sector, last three months

Advertising the biggest area of

interest in the past quarter


Top 5 Sectors (2008-present)

$ Raised # Deals

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

Ja

n-0

8

Fe

b-0

8

Mar-

08

Ap

r-08

May-0

8

Ju

n-0

8

Jul-

08

Aug-0

8

Sep-0

8

Oc

t-08

No

v-0

8

Dec-0

8

Ja

n-0

9

Fe

b-0

9

Mar-

09

Ap

r-09

May-0

9

Ju

n-0

9

Jul-

09

Aug-0

9

Sep-0

9

Oc

t-09

No

v-0

9

Dec-0

9

Ja

n-1

0

Fe

b-1

0

Mar-

10

Ap

r-10

May-1

0

Ju

n-1

0

(US

$ m

m)

Social Networks Gaming Advertising Video Virtual World

0

5

10

15

20

25

30

Ja

n-0

8

Fe

b-0

8

Mar-

08

Ap

r-08

May-0

8

Ju

n-0

8

Jul-

08

Aug-0

8

Sep-0

8

Oc

t-08

No

v-0

8

Dec-0

8

Ja

n-0

9

Fe

b-0

9

Mar-

09

Ap

r-09

May-0

9

Ju

n-0

9

Jul-

09

Aug-0

9

Sep-0

9

Oc

t-09

No

v-0

9

Dec-0

9

Ja

n-1

0

Fe

b-1

0

Mar-

10

Ap

r-10

May-1

0

Ju

n-1

0

(# D

eals

)

Social Networks Advertising Gaming Virtual World Video

Top 5 sectors average $170 mm & 15 deals per month (aggregate)


Financing Momentum

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Se

p-0

4

No

v-0

4

Ja

n-0

5

Ma

r-0

5

Ma

y-0

5

Ju

l-0

5

Se

p-0

5

No

v-0

5

Ja

n-0

6

Ma

r-0

6

Ma

y-0

6

Ju

l-0

6

Se

p-0

6

No

v-0

6

Ja

n-0

7

Ma

r-0

7

Ma

y-0

7

Ju

l-0

7

Se

p-0

7

No

v-0

7

Ja

n-0

8

Ma

r-0

8

Ma

y-0

8

Ju

l-0

8

Se

p-0

8

No

v-0

8

Ja

n-0

9

Ma

r-0

9

Ma

y-0

9

Ju

l-0

9

Se

p-0

9

No

v-0

9

Ja

n-1

0

Ma

r-1

0

Ma

y-1

0

(US

$m

)

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

(US

$m

)

Total (LTM) Average Size (LTM)

Approaching the previous high set in the summer of 2008 – just before

the crash!


Financing by Type (LTM)

# Deals $ Raised

Financing by T ype -LT M

(# deals )

PIPE

0.4%

NA

16.1%

Angel/S eed

15.1%

Debt f inanc ing

3.0%

S eries A

23.9%S eries B

20.7%

S eries C

14.9%

S eries D

5.0%

S eries E

1.0%

Financing by T ype - LT M

(amount rais ed)

PIPE

7.3%

NA

15.3%

Angel/S eed

3.2%

Debt f inancing

1.0%

S eries A

11.1%

S eries C

28.8%

S eries D

11.4%

S eries E

4.1%


Financing by Geography (LTM)

# Deals $ Raised

Financing/M&A by Country - LTM (#)

Israel

2.2%

USA

81.0%

UK

3.3%

Canada

2.9%

China

2.2%

ROW

8.4%

Financing/M&A by Country - LTM ($)

UK

7.0% Russia

3.3%

USA

55.5%

Luxembourg

22.0%

Israel

3.3%

China

3.2%

Canada

1.8%

ROW

3.9%


Financing by Type

# Deals $ Raised

Financing by Type

(Number of Deals)

7 7 7

21 17 13

25

55

2116

6

43

2111

17

49

138

18

39

21 21 21

63

21

10 14

45

9 17

18

44

1317

15

45

12

11

18

41

1015

13

38

2516 12

53

2

23

7

22

3

7

3 2

4

9

2

2

3

7

2 1

-

3

3

1 7

11

1

00

1

02

0

2

0 1

0

1

8

7

8

23

4 10

13

27

11

810

29

31

1924

74

28

34

46

108

37 36

25

98

43

31

46

120

2934

44

107

60

4650

156

-

20

40

60

80

100

120

140

160

180

Jan-0

9

Feb-0

9

Ma

r-0

9

Q1/0

9

Apr-

09

May-0

9

Jun-0

9

Q2/0

9

Ju

l-09

Aug

-09

Sep

-09

Q3/0

9

Oc

t-09

Nov-0

9

Dec-0

9

Q4/0

9

Jan-1

0

Feb-1

0

Ma

r-1

0

Q1/1

0

Apr-

10

May-1

0

Jun-1

0

Q2/1

0

(#)

Other

Late Stage (D/E)

Mid-Stage (B/C)

Early Stage (Angel/A)

Financing by Type

(Amount raised)

95.047.6 48.9

191.5

74.4 55.3 80.7

210.4

73.4 39.0 17.5

129.956.0 63.1 64.6

183.7

46.3 28.8 48.6123.6

53.4 60.7 64.4

178.5

199.1

108.0122.0

429.0

74.6 98.4111.7

284.6

99.8 168.8

87.2

355.8

123.8 114.5

316.4

554.8

127.8 163.4134.3

425.5

374.8

143.6146.2

664.6

19.0

48.2 27.0

94.2

12.0

205.0

18.3

235.3

31.019.8

133.1

183.9

32.0 52.5

76.5

161.0

47.0 10.0 -

57.0

66.6

4.0

191.9

262.5

0.0

0.0 0.0

0.0

0.0

5.1

0.0

5.1

0.00.0 0.0

0.0

70.684.2

116.4

271.1

5.0

157.9

72.5

235.4

45.5

50.7

55.6

151.8

313.1

203.7197.9

714.7

161.0

363.7

210.7

735.4

204.2227.6237.8

669.6

282.4314.2

573.9

1,170.6

226.1

360.0

255.4

841.5

540.2

259.0

458.1

1,257.3

-

200.0

400.0

600.0

800.0

1,000.0

1,200.0

1,400.0

Ja

n-0

9

Fe

b-0

9

Ma

r-09

Q1

/09

Ap

r-09

Ma

y-0

9

Ju

n-0

9

Q2

/09

Ju

l-09

Au

g-0

9

Se

p-0

9

Q3

/09

Oc

t-09

No

v-0

9

De

c-0

9

Q4

/09

Ja

n-1

0

Fe

b-1

0

Ma

r-10

Q1

/10

Ap

r-10

Ma

y-1

0

Ju

n-1

0

Q2

/10

(US

$m

)

Other

Late Stage (D/E)

Mid-Stage (B/C)

Early Stage (Angel/A)

Total


Top 10 Deals (2010 YTD)

Financing Acquisitions

300.0

147.0135.0

50.0 50.044.0 40.0 35.0 33.0 31.0

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

Dig

ita

l S

ky

Te

ch

no

log

ies

Zyn

ga

Gro

up

on

Qiy

i

Gla

m M

ed

ia

Liv

ing

So

cia

l

Tre

mo

r M

ed

ia

Gilt G

rou

pe

Pla

yd

om

Ha

ute

Lo

ok

225.0

187.5

160.0

142.0

126.5

100.0

80.075.0

70.0

59.8

0

50

100

150

200

250

Siri ICQ Turbine Jigsaw Alloy Ankeena

Networks

Mochi

Media

Tsavo

Media

Invite

Media

GameHi


Upcoming Events/Earnings

Source: CapitalIQ

Company Date Time Quarter Conf Call Details

The New York Times Company (NYSE:NYT) 22-Jul-10 11:00 AM (EST) Q2/10 888-293-6979

Tree.Com, Inc. (NasdaqGM:TREE) 29-Jul-10 11:00 AM (EST) Q2/10 877-874-1588


Public Company ListingC om pany Nam e Ticker Exchange

Trading

C urrency HQ

C urrent

Price

US$ Market

C ap (m m ) Em ployees

Accelerize New M edia, Inc. ACLZ OTCBB USD United States 1 20.3 10

Actoz Soft Co., Ltd. A052790 KOSE KRW South Korea 12,250 90.3 NA

AOL, Inc. AOL NYSE USD United States 22 2,324.4 6,700

AQ Interactive, Inc. 3838 TSE JPY Japan 158,800 96.7 NA

Asknet AG XTRA:A5A XTRA EUR Germany 3 19.2 NA

Beyond Commerce, Inc. BYOC OTCBB USD United States 0 5.5 16

BroadWebAsia Inc. BWBA OTCPK USD United States 0 1.7 46

CDC Corp. CHIN.A NasdaqGS USD Hong Kong 2 277.0 NA

Changyou.com Limited CYOU NasdaqGS USD China 27 1,389.2 1,308

Chinese Gamer International GTSM :3083 GTSM TWD Taiwan 271 725.3 NA

CornerWorld Corporation CWRL OTCBB USD United States 0 1.9 16

Cyberplex Inc. TSX:CX TSX CAD Canada 1 82.5 NA

DADA SpA CM :DA CM EUR Italy 4 79.4 597

Dena Co. Ltd. TSE:2432 TSE JPY Japan 2,591 4,136.6 NA

DigitalPost Interactive, Inc. DGLP OTCBB USD United States 0 6.5 6

DigitalTown, Inc. DGTW OTCBB USD United States 1 33.0 NA

Dolphin Digital M edia, Inc. DPDM OTCBB USD United States 0 10.5 NA

En2Go International, Inc. ETGI OTCBB USD United States 0 4.8 NA

ePro Ltd. SEHK:8086 SEHK HKD Hong Kong 1 30.2 707

Fluid M usic Canada, Inc. TSX:FM N TSX CAD United States 2 178.4 NA

Frogster Interactive P ictures AG FRG XTRA EUR Germany 21 64.8 NA

Gamania Digital Entertainment Co., Ltd. 6180 GTSM TWD Taiwan 53 262.4 NA

GameOn Co Ltd. 3812 TSE JPY Japan 76,600 82.9 NA

GeoSentric Oyj GEO1V HLSE EUR Finland 0 22.2 120

Giant Interactive Group, Inc. GA NYSE USD China 7 1,603.9 1,575

GigaM edia Ltd. GIGM NasdaqGS USD Taiwan 2 120.6 NA

Glu M obile, Inc. GLUU NasdaqGM USD United States 1 39.2 479

Gravity Co., Ltd GRVY NasdaqGM USD South Korea 2 43.2 455

Gree, Inc. TSE:3632 TSE JPY Japan 7,480 3,788.6 NA

GungHo Online Entertainment, Inc. 3765 OSE JPY Japan 212,600 273.2 NA

HanbitSoft, Inc. A047080 KOSE KRW South Korea 4,875 88.8 NA

HUGHES Telematics, Inc. HUTC OTCBB USD United States 3 91.0 276

Hutchison Telecommunications Hong Kong Holdings Ltd.SEHK:215 SEHK HKD Hong Kong 2 1,039.1 1,732

IAC/InterActiveCorp. IACI NasdaqGS USD United States 23 2,552.6 3,200

IAS Energy, Inc. IASC.A OTCPK USD Canada 0 3.7 NA

infoGROUP, Inc. IUSA NasdaqGS USD United States 8 459.1 3,146

Internet Group SA WSE:IGR WSE PLN Poland 1 7.3 NA


Public Company Listing cont.

C om pany Nam e Ticke r Exchange

Trading

C urrency HQ

C urrent

Price

US$ Market

C ap (m m ) Em ployees

Jumbuck Entertainment Limited ASX:JM B ASX AUD Australia 0.19 8.1 79

Kent International Ho ldings Inc. KNTH OTCPK USD United States 1.95 6.9 NA

Kingsoft Corporation Limited 3888 SEHK HKD China 4.15 581.5 2,735

Kiwibox.Com, Inc. KIWB OTCBB USD United States 0.01 4.5 6

Lingo M edia Corporation TSXV:LM TSXV CAD Canada 0.44 12.4 NA

LookSmart, Ltd. LOOK NasdaqGM USD United States 1.33 22.8 65

M ixi, Inc. 2121 TSE JPY Japan 411,500.00 712.4 NA

M obile Data Corp. M BYL OTCBB USD United States 0.05 1.2 NA

M odern Times Group M tg AB M TG B OM SEK Sweden 441.60 3,764.7 2,936

M oggle, Inc DB:M 0C DB EUR United States 0.85 49.0 2

M OKO.mobi Limited M KB ASX AUD Australia 0.06 6.2 NA

M ultiplied M edia Corporation TSXV:M M C TSXV CAD Canada 0.12 29.0 NA

M yriad Group AG M YRN SWX CHF Switzerland 4.45 199.2 NA

NEOWIZ Games Corporation A095660 KOSE KRW South Korea 41,800.00 732.8 NA

NetDragon WebSoft, Inc. 777 SEHK HKD China 3.66 247.4 2,901

Netease.com Inc. NTES NasdaqGS USD China 31.74 4,111.0 NA

NeuLion Incorporated TSX:NLN TSX CAD Canada 0.55 62.1 224

NeXplore Corporation NXPC OTCPK USD United States 0.32 17.8 NA

Ngi Group Inc. 2497 TSE JPY Japan 32,300.00 44.8 NA

Northgate Technologies Limited 590057 BSE INR India 17.80 13.4 NA

OAO RBC Information Systems RBCI M ICEX RUB Russia 37.06 161.5 2,523

Open Text Corp. OTEX NasdaqGS USD Canada 38.50 2,186.0 3,700

Openwave Systems Inc. OPWV NasdaqGS USD United States 2.14 179.5 590

Oriented M edia Group Berhad OM EDIA KLSE M YR M alaysia 0.08 3.1 NA

Paid Inc. PAYD OTCBB USD United States 0.28 74.6 20

Perfect World Co., Ltd. PWRD NasdaqGS USD China 22.16 1,109.3 2,896

Platfo rma M ediowa Point Group S.A. WSE:PGM WSE PLN Poland 1.38 42.7 NA

PNI Digital M edia Inc. TSXV:PN TSXV CAD Canada 1.52 50.4 NA

Points International Ltd. TSX:PTS TSX CAD Canada 0.62 89.9 93

Quepasa Corp. QPSA OTCBB USD United States 4.15 53.8 71

RealNetworks Inc. RNWK NasdaqGS USD United States 3.39 458.5 1,754

Score M edia Inc. TSX:SCR TSX CAD Canada 0.87 68.4 230

Shanda Interactive Entertainment Ltd. SNDA NasdaqGS USD China 39.98 2,373.9 5,721

Shutterfly, Inc. SFLY NasdaqGS USD United States 25.24 677.8 519

SK Communications Co., Ltd. A066270 KOSE KRW South Korea 20,800.00 726.2 NA


Public Company Listing cont.

C om pany Nam e Tick er Exchange

Trading

C urrency HQ

C urrent

Price

US$ Mark et

Cap (m m ) Em ployees

SocialGO PLC AIM :SGO AIM GBP United Kingdom 0.01 7.0 9

Socialwise, Inc. SCLW OTCBB USD United States 0.49 24.5 NA

Sohu.com Inc. SOHU NasdaqGS USD China 41.54 1,571.0 3,997

Spark Networks, Inc. LOV AM EX USD United States 3.43 70.6 155

SpectrumDNA, Inc. SPXA OTCBB USD United States 0.07 4.8 8

Taleo Corp. TLEO NasdaqGM USD United States 26.02 1,034.6 916

Tencent Holdings Ltd. 700 SEHK HKD China 130.20 30,613.7 7,845

The New York Times Company NYT NYSE USD United States 9.74 1,418.1 7,665

The9 Limited NCTY NasdaqGS USD China 4.18 106.6 1,010

TheStreet.com, Inc. TSCM NasdaqGM USD United States 2.95 93.1 274

TransGaming, Inc. TSXV:TNG TSXV CAD Canada 0.55 31.6 28

Tree.Com, Inc. TREE NasdaqGM USD United States 6.54 73.3 700

Unilava Corporation UNLA OTCBB USD United States 0.08 8.0 40

Uniserve Communications Corp. TSXV:USS TSXV CAD Canada 0.13 3.6 NA

United Online, Inc. UNTD NasdaqGS USD United States 6.16 536.7 1,699

UOM O M edia, Inc UOM O OTCBB USD Canada 0.02 1.4 NA

ValueClick, Inc. VCLK NasdaqGS USD United States 11.50 935.2 1,086

Velti P lc VEL AIM GBP United Kingdom 4.27 241.9 459

VOIS, Inc. VOIS OTCBB USD United States 0.01 14.2 2

WebM ediaBrands Inc WEBM NasdaqGS USD United States 0.94 35.2 83

Webzen Inc. KOSE:A069080 KOSE KRW South Korea 11,050.00 108.9 326

Wizzard Software Corporation WZE AM EX USD United States 0.20 13.2 80

Worlds.com Inc. WDDD OTCBB USD United States 0.10 5.7 1

XING AG O1BC XTRA EUR Germany 28.35 180.4 293

YD Online Corp. A052770 KOSE KRW South Korea 4,510.00 56.3 NA

Ynk Korea Inc. A023770 KOSE KRW South Korea 2,900.00 19.2 NA

YouBlast Global, Inc. YBLT OTCBB USD United States 0.15 5.2 6


Disclaimer

RELEVANT DISCLOSURES APPLICABLE TO: NONE

1. None applicable.

ANALYST CERTIFICATION

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

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 Corporation’s Rating System, the distribution of our research to clients and the percentage of recommendations which are in each of our rating categories is 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 Capital Corporation 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 mentioned herein. 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 Capital U.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 and Exchange Commission).

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10 06-29 web 2.0 weekly

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