09-10-06 Web 2.0 Weekly

SOFTWARE & SERVICES 6 OCTOBER 2009
DAVID SHORE, CFA, MBA 416.860.6784

WEB 2.O WEEKLY david.shore@researchcapital.com
Damian Wojcichowsky, CFA (Associate), 416.860.7652
TWITTER FINANCING BRING S VALUE TO $1 BILLION

E ARL Y T W IT T E R F UN D E R S ST AY IN G ON T HE SI D EL I N E S T HI S T IM E
The rumour proven true, Twitter raised $100 million in a Series E round of financing, bringing the company’s total
funding to date to approximately $159 million. More importantly, the company’s value has concretely increased from
$250 million at last funding to $1 billion, established in this latest financing round.
Absent from this round of funding were Union Square Ventures and Charles River Ventures – two investors that had
participated in earlier Twitter rounds. Both of these venture firms have experienced significant gains in their Twitter
investments based on the latest valuation. Charles River specifically cited the high valuation of the latest round as an
obstacle to the firm’s participation. Could Twitter’s valuation be reaching unsustainable levels given the company’s
state of financial and operational development?
W e reprise our Value per Unique Visitor analysis. W hile the increase in value seems extraordinary, when looking at
the valuation per unique visitor (UV), the increase is less impressive – from $29 to $42 (+47%). Note that we would of
course prefer comparing valuation based on financial metrics such as cash flow or even revenue. However, Twitter
has not yet started generating any revenue.
Value per unique vis itor (UV)
1,200,000, 000
S ep 09
T witter, $42
Link edin, $88
1,000,000, 000
800,000, 000 P laxo

B ebo, $22
Mint.com
L inkedin
(T otal V a lua tion $)
600,000, 000 F riendF eed

T witter
C lub P enguin
T witter
400,000, 000 B ebo
C lub P enguin, $29
P eople Media
F eb 09 S tumbleUpon
T witter, $29
200,000, 000 F riends R eunited
Mint.com, $113 P la xo, $200
S tumbleU pon, $5 P eople Media , $20
F riendF eed, $48
-
F riends R eunited, $2
(200,000, 000)
$(50) $- $50 $100 $150 $200 $250
(V a lue per Unique V is itor) B ubble s ize de note s numbe r of U V
S ource : C ompany re ports , C ompe te .com
This report has been created b y Anal ysts that are emplo yed b y Research Capital Corporation, a Canadian Investment Dealer.
For further disclosures, please see last page of this report.
w w w . r e s e a rc h c a p i t a l . c o m
T o ro n t o 4 1 6 . 8 6 0 . 7 6 0 0 Montreal 514.399.1500 Vancouver 604.662.1800 Calgary 403.265.7400 Regina 306.566.7550
Page 2
THE WEB 2.0 UNIVERSE

Ninety public Web 2.0 companies: Our W eb 2.0 universe contains 90 companies, with a combined market cap of
approximately $66 billion (Figure 1). The median market cap for the group is $47 million, with average trailing revenue of
$163 million (median $57 million). The companies are also generally profitable, with a median EBITDA margin of 12.5%.
On a valuation basis, the overall average is 4.2x trailing revenue (median 1.7x) and 12.4x trailing EBITDA (median 10.2x).
Twenty of the companies have more than 500 employees.
C omparable C ompany Analys is > Web 2.0
Trading C urrent US D Market US D L TM Total US D L TM Total E B ITDA TE V/L TM TE V/L TM
C ompany Name L TM as of Tic ker E xchange C urrency HQ P ric e C ap ($m) R ev ($m) E B ITDA ($m) % R evenue E B ITDA E mployees
Accelerize New Media, Inc. 6/30/2009 AC L Z OT CB B US D U nited S tates 0. 60 16.8 4. 4 (3.7) -83. 3% 4.9x - 11
Actoz S oft C o., Ltd. 6/30/2009 A052790 K OS E KRW S outh K orea 17, 250 124. 6 108.7 25. 9 23. 8% 0.8x 3. 6x NA
AQ Interactive, Inc. 6/30/2009 3838 TS E JPY J apan 48, 650 29.6 66. 1 (2.0) -2.9% 0.1x - NA
As s ocia ted Media Holdings Inc. 6/30/2007 AS MH OT CP K US D U nited S tates 0. 01 0. 6 0. 1 (2.3) NM 15. 6x - 3
B igs tring C orp. 6/30/2009 BSGC OT CB B US D U nited S tates 0. 04 2. 1 0. 1 (1.5) NM - - 4
B etawave C orpora tion 6/30/2009 B W AV OT CB B US D U nited S tates 0. 07 2. 0 9. 4 (12. 6) NM - - 51
B eyond C ommerce, Inc. 6/30/2009 B Y OC OT CB B US D U nited S tates 0. 24 11.3 11. 7 (12. 8) NM 1.5x - 101
B right T hings plc 3/31/2009 AIM:B G T AIM GB P U nited K ingdom 0. 01 5. 9 0. 0 (2.7) NM - - NA
B roadW ebAs ia Inc. 9/30/2008 BWBA OT CP K US D U nited S tates 0. 23 19.5 0. 0 (4.6) NM - - 46
C DC C orp. 6/30/2009 C HIN. A Nas da qG S US D H ong K ong 2. 50 264. 9 361.6 25. 1 6.9% 0.7x 10. 4x 2, 227
C ha ngyou.com Limited 6/30/2009 C Y OU Nas da qG S US D C hina 33. 07 1, 818. 9 241.2 147.2 61. 0% 6.4x 10. 5x 628
C hina G atewa y C orporation 9/30/2008 CGW Y OT CP K US D U nited S tates 0. 00 0. 0 6. 7 (6.6) -98. 9% 0.0x - 37
C hines e G amer Internationa l 6/30/2009 G T S M: 3083 GTS M TWD T aiwan 484 1, 255. 2 61. 6 34. 7 56. 3% 19. 2x 34. 1x NA
C LIC K E R Inc. 5/31/2009 C LK Z OT CB B US D U nited S tates 0. 01 0. 6 2. 5 (1.2) -45. 8% 0.3x - 22
C ornerW orld C orporation 7/31/2009 CWR L OT CB B US D U nited S tates 0. 06 5. 7 6. 8 NM NM 2.4x - 16
C yberplex Inc. 6/30/2009 T S X :C X TS X C AD C anada 1 74.9 89. 8 9. 7 10. 8% 0.6x 5. 7x NA
DADA S pA 6/30/2009 C M:DA CM E UR Ita ly 6. 73 159. 7 241.9 31. 8 13. 1% 0.9x 6. 6x NA
DX N H oldings B hd 5/31/2009 DXN K LS E MY R Malays ia 0. 60 39.4 77. 1 11. 1 14. 4% 0.7x 4. 9x NA
Dibz Interna tional, Inc. NA DIB Z OT CP K US D U nited S tates 0. 00 0. 0 NA NM NM - - NA
DigitalP os t Interactive, Inc. 6/30/2009 DG L P OT CB B US D U nited S tates 0. 06 4. 5 1. 0 (1.4) NM 6.6x - 7
DigitalT own, Inc. 5/31/2009 DG T W OT CB B US D U nited S tates 2. 01 55.0 NM (2.5) NM - - 3
Dolphin Digital Media, Inc. 6/30/2009 DP DM OT CB B US D U nited S tates 0. 37 19.9 0. 6 (3.4) NM 35. 9x - NA
E olith C o. Ltd. 12/31/2008 A041060 K OS E KRW S outh K orea 745 45.2 15. 4 (3.6) -23. 6% 3.1x - NA
E xtens ions , Inc. 6/30/2009 E XT I OT CP K US D U nited S tates 0. 20 8. 9 NM NM NM - - 2
F luid Mus ic C anada, Inc. 6/30/2009 T S X :F MN TS X C AD U nited S tates 1. 52 73.3 5. 3 (5.1) -95. 2% 12. 6x - NA
F rogs ter Interactive P ictures AG 6/30/2009 FR G XTR A E UR G ermany 18. 50 68.4 9. 6 (4.5) -47. 0% 7.0x - NA
G amania Digital E ntertainment C o. , Ltd. 6/30/2009 6180 GTS M TWD T aiwan 48. 10 225. 2 140.6 25. 1 17. 9% 1.4x 8. 1x NA
G ameO n C o Ltd. 6/30/2009 3812 TS E JPY J apan 86, 000 93.0 81. 9 20. 1 24. 5% 0.2x 0. 9x NA
G eoS entric O yj 6/30/2009 G E O 1V H LS E E UR F inland 0. 05 65.8 5. 4 (17. 4) NM 12. 1x - 115
G iant Interactive G roup, Inc. 6/30/2009 GA NY S E US D C hina 7 1, 512. 6 198.5 124.1 62. 5% - - 1, 570
G igaMedia Ltd. 3/31/2009 G IG M Nas da qG S US D T aiwan 4. 80 261. 7 183.6 NM NM 1.0x - 751
G ravity C o., Ltd 6/30/2009 GRVY Nas da qG M US D S outh K orea 1. 87 52.0 49. 1 16. 6 33. 9% - - 469
G ree, Inc. 6/30/2009 T S E : 3632 TS E JPY J apan 4, 280 2, 142. 8 156.0 93. 7 60. 1% 13. 0x 21. 6x NA
G ungHo O nline E ntertainment, Inc. 6/30/2009 3765 OS E JPY J apan 216, 500 277. 4 119.5 26. 6 22. 2% 2.0x 9. 2x NA
HanbitS oft, Inc. 6/30/2009 A047080 K OS E KRW S outh K orea 4, 180 76.7 60. 7 1. 4 2.3% 1.0x 44. 7x NA
IAC /InterActiveC orp. 6/30/2009 IAC I Nas da qG S US D U nited S tates 19. 25 2, 548. 7 1,392. 3 52. 7 3.8% 0.6x 15. 4x 3, 200
IAS E nergy, Inc. 4/30/2009 IAS A. E OT CB B US D C anada 0. 06 4. 2 0. 0 (0.6) NM - - NA
is eemedia Inc. 3/31/2009 IE E T S XV C AD C anada 0. 13 5. 9 1. 6 (5.0) NM 3.1x - NA
J umbuck E ntertainment Limited 6/30/2009 AS X :J MB AS X AU D Aus tralia 0. 40 17.0 16. 7 7. 2 42. 8% 0.6x 1. 5x 79
K AB Dis tribution Inc. 6/30/2009 T S X :K AB TS X C AD C anada 0 0. 6 67. 9 4. 0 5.8% - - NA
K ings oft C o. Ltd. 6/30/2009 3888 S E HK HK D C hina 7 968. 2 139.1 61. 4 44. 2% 6.9x 15. 5x 2, 463
Lingo Media C orporation 6/30/2009 T S X V :LM T S XV C AD C anada 1. 02 12.1 1. 2 (1.9) NM 9.4x - NA
LiveW orld Inc. 6/30/2009 LV W D OT CP K US D U nited S tates 0. 08 2. 5 10. 6 (0.1) -1.2% 0.1x - NA
LookS mart, Ltd. 6/30/2009 LO O K Nas da qG M US D U nited S tates 1. 14 19.5 56. 8 (4.4) -7.8% - - 90
Magnitude Information S ys tems Inc. 6/30/2009 MAG Y OT CB B US D U nited S tates 0. 01 4. 1 0. 1 (2.5) NM - - 14
Mixi, Inc. 6/30/2009 2121 TS E JPY J apan 563000. 00 970. 1 136.8 46. 2 33. 8% 6.2x 18. 4x NA
Modern T imes G roup Mtg AB 6/30/2009 MT G B OM SEK S weden 287. 00 2, 716. 1 1,971. 4 302.9 15. 4% 1.7x 10. 9x 2, 969
MOK O .mobi Limited 6/30/2009 MK B AS X AU D Aus tralia 0. 07 4. 9 0. 7 (2.4) NM 5.7x - NA
Myriad G roup AG 6/30/2009 MY R N SWX C HF S witzerland 4. 49 192. 5 63. 0 3. 4 5.4% 3.0x - 405
NE O W IZ G ames C orporation 12/31/2008 A095660 K OS E KRW S outh K orea 38300. 00 676. 6 207.3 55. 7 26. 8% 3.2x 12. 0x NA
NetDragon W ebS oft, Inc. 6/30/2009 777 S E HK HK D C hina 5 341. 0 89. 3 25. 7 28. 7% 2.2x 7. 6x 2, 426
Neteas e.com Inc. 6/30/2009 NT E S Nas da qG S US D C hina 43. 00 5, 565. 3 472.4 297.4 63. 0% - - 3, 109
NeuLion Incorporated 6/30/2009 T S X :NLN TS X C AD C anada 0. 94 98.6 21. 5 (13. 0) -60. 3% 4.2x - 237
NeX plore C orporation 6/30/2008 NXP C OT CP K US D U nited S tates 1 36.3 0. 7 (6.2) NM - - NA
Ngi G roup Inc. 6/30/2009 2497 TS E JPY J apan 24100. 00 33.4 93. 0 6. 9 7.4% - - NA
Northgate T echnologies Limited 6/30/2009 590057 BSE INR India 40. 40 29.4 82. 9 (41. 5) -50. 0% 0.4x - NA
Open T ext C orp. 6/30/2009 OTE X Nas da qG S US D C anada 37. 35 2, 097. 2 785.7 205.1 26. 1% 2.7x 10. 4x 3, 411
Openwave S ys tems Inc. 6/30/2009 OP W V Nas da qG S US D U nited S tates 2. 50 208. 7 191.7 4. 9 2.6% 0.5x 20. 4x 590
P erfect W orld C o. , Ltd. 6/30/2009 PWR D Nas da qG S US D C hina 45. 75 2, 250. 1 255.6 142.2 55. 6% 0.7x 1. 3x 2, 096
P NI Digital Media Inc. 6/30/2009 T S X V :P N T S XV C AD C anada 1. 90 59.8 21. 0 2. 3 11. 0% 2.8x 25. 0x NA
Quepas a C orp. 6/30/2009 QP S A OT CB B US D U nited S tates 2 19.1 0. 2 (10. 6) NM - - 74
OAO R B C Information S ys tems 12/31/2007 R BCI R TS US D R us s ia 1. 50 208. 1 157.4 20. 6 13. 1% 0.0x 0. 3x NA
S ha nda Interactive E ntertainment Ltd. 6/30/2009 S NDA Nas da qG S US D C hina 49. 63 3, 337. 9 629.0 296.7 47. 2% - - 3, 124
S hutterfly, Inc. 6/30/2009 S F LY Nas da qG S US D U nited S tates 15. 70 399. 7 218.6 27. 3 12. 5% 1.5x 12. 3x 514
S K C ommunications C o. , Ltd. 12/31/2008 A066270 K OS E KRW S outh K orea 8780. 00 308. 1 192.7 12. 5 6.5% 1.6x 24. 6x NA
S NAP Intera ctive, Inc. 6/30/2009 S TVI OT CB B US D U nited S tates 0 3. 8 3. 5 0. 9 27. 0% 0.6x 2. 3x 11
S NM G lobal H oldings 9/30/2008 S NMN OT CP K US D U nited S tates 0. 00 0. 0 2. 0 (0.7) -34. 8% 1.1x - 33
S ocial Media V enures , Inc. 12/31/2008 S MV I OT CP K US D U nited S tates 0 0. 0 0. 1 (0.1) -60. 6% 4.5x - NA
S ocialwis e, Inc. 6/30/2009 S CLW OT CB B US D U nited S tates 0. 61 27.0 0. 0 (5.6) NM - - NA
S ohu.com Inc. 6/30/2009 S OH U Nas da qG S US D C hina 65. 45 2, 509. 0 485.1 209.6 43. 2% 4.1x 9. 6x 3, 197
S pa rk Networks , Inc. 6/30/2009 LO V AME X US D U nited S tates 2 47.1 50. 5 10. 8 21. 3% 0.9x 4. 2x 183
S pectrumDNA, Inc. 6/30/2009 S P XA OT CB B US D U nited S tates 0 9. 7 0. 1 (2.5) NM - - 7
T encent H oldings Ltd. 6/30/2009 700 S E HK HK D C hina 123 28,711.6 1,391. 6 680.3 48. 9% 22. 6x 46. 3x 6, 421
T he P arent C ompany 8/2/2008 K IDS . Q OT CP K US D U nited S tates 0. 01 0. 3 112.0 (13. 5) -12. 0% 0.2x - 347
T he9 Limited 12/31/2008 NC T Y Nas da qG S US D C hina 7. 56 189. 7 250.6 85. 5 34. 1% - - 1, 626
T heS treet. com, Inc. 3/31/2009 TSCM Nas da qG M US D U nited S tates 2. 86 87.5 67. 0 1. 9 2.9% 0.3x 11. 8x 310
T ree. C om, Inc. 6/30/2009 TRE E Nas da qG M US D U nited S tates 7. 69 83.1 216.6 (0.7) -0.3% 0.4x - 700
Unis erve C ommunications C orp. 5/31/2009 T S X V :U S S T S XV C AD C anada 0. 04 0. 9 17. 1 (0.2) -1.0% 0.2x - NA
United O nline Inc. 6/30/2009 U NT D Nas da qG S US D U nited S tates 7. 87 659. 8 949.8 203.2 21. 4% 1.0x 4. 6x 1, 469
UO MO Media, Inc 7/31/2009 U OMO OT CB B US D C anada 0 10.4 0. 8 (0.4) -54. 2% 13. 7x - NA
V alueC lick Inc. 6/30/2009 V CLK Nas da qG S US D U nited S tates 13 1, 127. 8 563.6 99. 0 17. 6% 1.8x 10. 0x 1, 189
V O IS , Inc. 6/30/2009 V OIS OT CB B US D U nited S tates 0 3. 3 0. 0 (1.0) NM - - 4
W ebzen Inc. 6/30/2009 W ZE N Nas da qG M US D S outh K orea 2. 71 32.1 23. 2 2. 3 9.9% - - 328
W izza rd S oftware C orpora tion 6/30/2009 W ZE AME X US D U nited S tates 0. 47 23.5 5. 3 (4.5) -84. 9% 4.6x - 110
W orlds . com Inc. 6/30/2009 W DDD OT CB B US D U nited S tates 0. 10 5. 2 0. 1 (0.7) NM - - 1
W ynds torm C orpora tion NA W Y ND OT CP K US D U nited S tates 0. 10 1. 8 NA NM NM - - NA
XING AG 6/30/2009 O 1B C XTR A E UR G ermany 36. 85 284. 5 58. 9 17. 0 28. 8% 3.9x 13. 7x 246
Y edangO nline C orp. 12/31/2007 A052770 K OS E KRW S outh K orea 8400. 00 105. 5 57. 4 12. 4 21. 6% 2.0x 9. 2x NA
Y nk K orea Inc. 12/31/2008 A023770 K OS E KRW S outh K orea 3745. 00 16.8 11. 9 1. 3 10. 5% - - NA
High 28,711.6 1, 971. 4 680. 3 63. 0% 35. 9x 46. 3x 6, 421
Low 0. 0 0. 0 -41. 5 -98. 9% - - 1
Average 740.3 163.1 39.1 6.1% 4.2x 12.4x 922
Media n 47.1 57.4 1. 7 12. 5% 1.7x 10. 2x 246
Figure 1. Web 2.0 Universe Summary

Source. Capital IQ
Page 3
C A P I T A L M A R K E T S A C T I V I T Y (M & A A N D F I N A N C I N G )
Twitter deal ups the average: Total transaction value in the W eb 2.0 universe for September rose to $232.2 million, up
from $196.6 million at this time last week (we included Twitter, which did not make it into last week’s number in the
previous edition). This week has brought another eight financings to the sector, bringing the total for September to 30
transactions averaging $9.3 million each. The largest transaction in the week (excluding Twitter, which closed prior to the
beginning of the week) was a $16 million financing of Livebookings, provider of restaurant reservation applications. The
biggest deal in the month was Skype at $2.2 billion, followed by the acquisition of InXpo at $170 million, and the Twitter
venture raise at $100 million. In comparison, total capital raised in August was $208.5 million, averaging $7.7 million (27
deals); for July (35 deals) $191.4 million, averaging $5.5 million; and June (42 deals) was $204.7 million (averaging $4.9
million).
Financing Activity Last Twelve Months
400.0 18.0
16.2
16.0
350.0
14.6
14.0
300.0
12.0
250.0
9.7
9.3 10.0
(US$m)
(US$m)
200.0
7.9
8.0
7.0 7.0 7.1
6.5 6.6
150.0 6.2
5.5 6.0
4.9
100.0
4.0
50.0
2.0
0.0 0.0
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
*May-09 includes $200m FB investment Total Average
Figure 2. Financings, Last Twelve Months

Source. Company reports
(US$m)
•
•
•
•
•
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0
200.0
Skype
Mint
Twitter
People Media

Super Rewards
Turbine
Friends Reunited
AdLink Internet Media
Pandora Media
equity firms.
Smith & Tinker
NowPublic
Ensequence
xoopit
and 24 (at end of note).

iLike
MediaMath
Livebookings
Kontera Ltd.
Figure 3. Capital Market Activity, Last Three Months

Dopplr
Ning
Zoove
RichRelevance
QuickPlay Media
Traffiq
Causes
Mzinga
InXpo
Edo Interactive
Bill.com
Outspark
Jobvite
ConnectEdu
NextBio
Riot Games
Acquia, Inc
SBNation
InnoCentive
OneRiot
Balihoo
Metaversum
iMemories
Vuclip
Invodo
Imeem
HiveLive
Boxee
Polyvore
Booyah
Fanbase
MOG
Jambool
YuMe
Quikr India Pvt. Ltd.
NeoEdge
OPEN Sports network
Nexage
StyleCaster
Alliance Health Networks
TweetDeck
Unisfair
KODA
Mocapay
Conduit Labs
OurStage
Z2Live
Scoreloop
Fwix
Vantrix
Deal round-up for September: The large deal highlights for the month include:
Busca
ProtonMedia
Akademos
MashLogic
Roblox
Financing & M/A Summary - Last Three Months
Greystripe
Tremor Media
iSocket
iLoop Mobile
Comunitae
Loomia
Lat49
Aloqa
RightsFlow
Mint – a free online personal finance service – was acquired for $170 million by Intuit.
Plista
FourSquare
EduFire
Tiny Pictures
ChessCube
Ensequence – interactive TV solution provider – raised $20 million in a Series D financing.
Thread
Tributes.com
Now Public – a crowdsourcing news network – was acquired by Examiner.com for $25 million.
CoTweet
Cognitive Match Limited
Cellufun
Clikthrough
Linksify
TransGaming Inc.
BookFresh
People Capital
iSyndica
Masher Media
OnLive
Gigpark
Gamelab.com
Twitter – the leading 140-character communication tool – raised $100 million through a Series E financing.
Jul-09
Aug-09
Sep-09
Page 4
All other deals in the month involved less than $20 million in funding. For additional details on financings, see Figures 23
Skype – a VoIP-based communications suite provider – was acquired for $2.025 billion by a consortium of private
Page 5
Advertising remains the most active sector: Social Networks companies saw the most activity in the month by number
of transactions (12), followed by Advertising (11), and Gaming (9) (Figure 4). The $2.0 billion acquisition of Skype skews
the dollars transacted to the SMS/Voice segment, while the $170 million acquisition of Mint brings the Vertical
Communities segment to the second highest total.
Capital Market Activity by Sector - Last Three Months
200.0
180.0
160.0
140.0
120.0
(US$m)
100.0
80.0
60.0
40.0
20.0
2,025.0 197.5 113.3 104.1 103.2 99.0 82.0 80.0 70.5 40.0 38.2 37.3 7.0 29.3 26.0 14.0 13.2 12.0 8.6 8.0 8.0 5.0 4.1 4.0 2.8 1.0 0.5 0.5
0.0 Comment/Reputation
Communities
Gaming
Online Dating
Online Calendar
Microblog
Mobile
Enterprise
Online Learning
Media
Collaboration
Online Lending
Music
SMS/Voice
Infrastructure
Search
Advertising/Mobile
Blog
Classified
Mobile Ad
Social Networks
Virtual Goods
Advertising
Virtual World
Video
Crowdsourced
Aggregation
Analytics
Vertical
Content
# companies
1 5 12 11 2 9 7 1 6 5 5 3 2 7 4 2 1 3 2 1 1 1 1 2 1 1 1 1
Figure 4. Capital Market Activity, by Sector, Last Three Months

Page 6
C A P I T A L M A R K E T S A C T I V I T Y (P R I C E P E R F O R M A N C E )
Web 2.0 index continues to outpace NASDAQ recovery: Our W eb 2.0 index (market-cap weighted) essentially mirrored
the performance of the NASDAQ composite index from mid-2008 until earlier this year. However, the index has recently
had a much stronger recovery relative to the NASDAQ index (Figure 5).
Web 2.0 Index Price Performance

160
140
120
100
80
60
40
20
0
9/22/2008
10/6/2008
10/20/2008
11/3/2008
11/17/2008
12/1/2008
12/15/2008
12/29/2008
1/12/2009
1/26/2009
2/9/2009
2/23/2009
3/9/2009
3/23/2009
4/6/2009
4/20/2009
5/4/2009
5/18/2009
6/1/2009
6/15/2009
6/29/2009
7/13/2009
7/27/2009
8/10/2009
8/24/2009
Index: Web 2.0 (Market Cap) ^COMP - Share Pricing
Figure 5. Web 2.0 Price Performance

Source. Capital IQ
Page 7
Broad-based price improvement: Fourteen companies in our universe had positive stock price performances over the
past week (for stocks with prices greater than $1) (Figure 6), while 36 companies showed negative 1-week returns.
Volatile price swings continue for DigitalTown (OTCBB:DGTW ), falling 24% this week after rising 76% the prior week and
falling 14% the week before that.
1 Week P rice P erformance

Fluid Mus ic Canada, Inc. 31.0%
OA O R B C Inf ormation S y s tems 29.3%
Lingo Media Corporation 13.3%
Chines e G amer International 7.1%
Tree.Com, Inc. 4.3%
S handa Interactive 2.9%
Frogs ter Interac tive Pictures A G 2.7%
Perf ect World Co., Ltd. 2.1%
Eolith Co. Ltd. 0.7%
G ama nia Digital Entertainment 0.2%
A Q Interac tive, Inc. 0.2%
Tencent Holdings Ltd. 0.2%
V alueClick Inc. 0.1%
PNI Digital Media Inc. 0.0%
Y nk K orea Inc. -0.1%
My riad G roup A G -0.2%
S K Communications Co., Ltd. -0.2%
Ngi G roup Inc. -0.4%
Open Tex t Corp. -0.5%
NetDragon WebS oft, Inc. -0.6%
LookS mart, Ltd. -0.9%
TheS treet. com, Inc. -1.0%
S park Netw orks , Inc. -1.7%
DA DA S pA -2.0%
Gravity Co., Ltd -2.1%
Neteas e.c om Inc. -2.5%
S ohu.com Inc. -2.6%
K ings of t Co. Ltd. -2.7%
Cy berplex Inc. -3.1%
The9 Limited -3.2%
Openw ave S y s tems Inc. -3.8%
Mix i, Inc. -4.4%
CDC Corp. -4.9%
Y edangOnline Corp. -5.1%
HanbitS oft, Inc. -5.2%
G ameOn Co Ltd. -6.5%
Northgate Technologies Limited -6.6%
Modern Times G roup Mtg A B -7.0%
IA C/InterA ctiveCorp. -7.8%
S hutterf ly , Inc. -8.9%
Webz en Inc. -9.1%
G igaMedia Ltd. -10.1%
A c toz S oft Co., Ltd. -10.2%
NEOWIZ G ames Corporation -11.1%
Quepas a Corp. -12.3%
Changy ou.com Limited -12.4%
G ree, Inc. -12.7%
G iant Interactive G roup, Inc. -13.7%
DigitalTow n, Inc. -23.9%
-0.3 -0.2 -0.1 0 0.1 0.2 0.3 0.4
Figure 6. 1-Week Price Performance

Source. Capital IQ
Page 8
P U B L I C C O M P A N Y I N D U S T R Y N E W S (P A R T N E R S H I P S , F I N A N C I A L R E S U L T S , N E W P R O D U C T S )
K ey Developments
C ompany Headline Notes
C hangyou.com L imited C ertain American Depos ita ry s hares of C hangyou. com C ertain American Depos itary S hares of C hangyou. com Limited are s ubject to a Lock-Up Agreement E nding on 28-S E P -2009. T hes e s hares
(Nas daqG S :C YOU) L imited are s ubject to a Lock-Up A greement E nding on will be under lockup for 180 days s tarting from 01-AP R -2009 to 28-S E P -2009.
28-S E P -2009.
is eemedia Inc. (TS XV: IE E ); R eal B iz Is eemedia S eeks S tra tegic P artner F or R ealB iz360 Is eemedia Inc. recently provided a bus ines s upda te on its R eal B iz LLC s ubs idiary as it reviews s trategic alternatives for the unit. "T he wors e
LLC the real es tate s ector gets the more a ttra ctive our s olutions become to all participants in the rea l es tate indus try, from s ellers a nd buyers , to
bankers and la wyers , " s aid Anthony DeC ris tofa ro, pres ident and chief executive officer, is eemedia. He added: "R ealB iz360 has reached a
critical inflection point with an annual revenue run rate of $2. 6-million with profits and the time is ripe for us to s eek a s trategic partner to fuel
its growth more ra pidly at a time when the real es tate indus try, the world over, is s eeking innovative s olutions to expedite s ales . "
The9 L imited (Nas daqGS :NC TY) T he9 Limited S elects Deloitte T ouche T ohmats u as its T he9 Limited a nnounced tha t the Audit C ommittee of its B oard of Directors ha s engaged the s ervices of Deloitte T ouche T ohmats u C P A L td.
Independent R egis tered P ublic A ccounting F irm a s the compa ny's independent regis tered public accounting firm for the fis cal yea r ending December 31, 2009. DT T C replaces the
R eplacing P ricewaterhous eC oopers Zhong T ian C P As company's previous independent regis tered a ccountant, P ricewa terhous eC oopers Zhong T ian C P As Limited C ompany, effective
L imited C ompany immedia tely.
P erfec t World C o., L td. P erfect W orld to La unch Open B eta T es ting for 'F antas y P erfect W orld C o. Ltd. a nnounced tha t it will launch the open beta tes ting for its firs t 2D turn-bas ed MMO R P G 'F antas y Zhu Xian' on O ctober
(Nas daqG S :P W R D) Zhu Xia n' 22, 2009. 'F anta s y Zhu Xian' is ba s ed on a popular internet fantas y novel 'Zhu Xian, ' and runs on the C ompany's proprietary E P AR C H 2D
engine, bringing entirely new gaming experiences to players . In this open beta tes ting vers ion, 'F antas y Zhu Xian' conta ins many innovative
features and lots of new content, including an innovative flying s ys tem tha t introduces the concept of a ltitude into a 2D ga me, a built-in P P -
C hat friend making s ys tem, player vs . player turn-ba s ed battlefields and s uch s ys tems as light effect of weaponry, s uper pets , adva nced
equipment and production a nd the NP C voice s ys tem. All thes e features cater to players ' preferences .
DigitalP os t Interactive, Inc . DigitalP os t Interactive Inc. E nters into 2-Y ear Agreement O n S eptember 23, 2009, Digita lP os t Intera ctive Inc. entered into a 2-year agreement with Lucidiom Inc. Under the terms , DigitalP os t agrees
(OTC B B :DG L P ) with Lucidiom, Inc to provide, hos t, a nd maintain a new digital fa mily media-s haring s ervice bas ed on its T heF amilyP os t. com s ervice which Lucidiom agrees to
launch through its kios ks located a t retail s tores worldwide. T he new online s ervice will enable Lucidioms cus tomers to enjoy their own,
pers onalized family webs ite tha t can be us ed to s hare a lifetime of photos , profes s ional portraits , videos , s tories , family tree and more.
DigitalP os t a grees to pay Lucidiom 50% of the ongoing monthly net fees received by Digita lP os t for active, pa ying cus tomer s ubs criptions
during the term of the agreement. F urther, Lucidiom a grees to make the family webs ite platform acces s ible through its P hotoF inale webs ite,
which its cus tomers can log in to create a nd manage their family webs ite.
P erfec t World C o., L td. P erfect W orld C o. Ltd. Launches New E xpans ion P ack P erfect W orld C o. Ltd. a nnounced tha t it la unched a new expa ns ion pack 'Zhu Xian 2. 0 S pecia l E dition' for its popular 3D MMO R P G 'Zhu
(Nas daqG S :P W R D) 'Zhu Xia n 2. 0 S pecial E dition' Xian' on S eptember 22, 2009. Zhu Xian is a 3D MMO R P G ada pted from a popular internet fantas y novel of the s ame name. T he game has
been well received in both domes tic and overs eas markets s ince its launch in 2007, a nd is one of the C ompany's mos t s ucces s ful cla s s ic
titles . In the new expans ion pa ck, numerous new features were added to the ga me, including a P layer Driven S toryline S ys tem in which the
players can change the s torylines of the game as recorded in the s erver with their deeds , a new ra ce-Demigod, the Aerial C omba t S ys tem,
the T ra ns forma tion S ys tem and s o on. All thes e new features are aimed at catering to players ' va rious preferences .
G et Tic kets E -S olutions , Inc.; UOMO U OMO Media , Inc (O T C B B : UO MO) a cquired 15% s take UO MO Media, Inc (OT C B B : UO MO) acquired 15% s take in G et T ickets E -S olutions , Inc. on S eptember 29, 2009. UO MO Media has an
Media, Inc (OTC B B :UOMO) in G et T ickets E -S olutions , Inc. opportunity to acquire more, under certa in performance mechanis ms .
UO MO Media, Inc (OT C B B : UO MO) completed the acquis ition of 15% s take in G et T ickets E -S olutions , Inc. on S eptember 29, 2009.
MOK O.mobi L imited (AS X: MK B ) MO K O . mobi Limited, Annua l G enera l Meeting, S ep 30, MO K O . mobi L imited, Annual G eneral Meeting, S ep 30, 2009, a t 14: 00 AUS E as tern S tandard T ime. L oca tion: P K F , Level 10, Marga ret
2009 S treet, S ydney,A us tra lia . Agenda: T o receive and cons ider the income s tatements , ba lance s heets and cas h flow s tatements of the
company a nd its controlled entities , the s tatement by the directors a nd the reports of the directors and auditors for the year ended 30 J une
2009; to cons ider election of directors ; to cons ider the company's remuneration report for the yea r ended 30 J une 2009; to cons ider the is s ue
of Director Options ; to cons ider a pproval of is s ue of S taff O ptions ; to cons ider ratifica tion of prior is s ue of O ptions to T im G epp; to cons ider
ratification of prior is s ues of S ecurities ; and to cons ider the approval of placement of S hares .
Northgate Technologies L imited Northga te T echnologies Limited, Annual G eneral Northgate T echnologies Limited, A nnual G eneral Meeting, S ep 30, 2009
(B S E : 590057) Meeting, S ep 30, 2009
Open Text C orp. (Nas daqG S : OTE X) O pen T ext C orp. E nters Amended C redit A greement with O n S eptember 24, 2009, O pen T ext C orp. a nd certain of its s ubs idiaries entered into a n amended credit agreement with R oya l B a nk of
R oyal B ank of C anada C a nada to amend a credit a greement, origina lly s igned on October 2, 2006. Agreement to C redit Agreement is (1) S ection 1. 01 of the credit
a greement is hereby amended by ins erting the following defined terms in their proper alphabetica l order: 'S econd Amendment' mea ns tha t
S econd Amendment to this Agreement, da ted as of S eptember 24, 2009, among the B orrower, the Adminis trative A gent a nd the Lenders
lis ted on the s igna ture pa ges thereto. 'S econd A mendment E ffective Da te' has the mea ning s et forth in the S econd Amendment. (2) C laus e
(e) of the definition of 'P ermitted Acquis itions ' in S ection 1. 01 of the C redit Agreement is hereby amended by removing the period a t the end
thereof and adding the following provis o: 'provided tha t, the foregoing limitations in claus es (A ) and (B ) s hall not apply to the extent tha t (x)
the C ons olida ted Leverage R atio does not exceed 2. 50: 1. 00 a s at the end of the mos t recently-ended Meas urement P eriod, as determined
on a pro forma bas is a fter giving effect to s uch P ermitted Acquis ition and (y) the s um of cons olida ted unres tricted cas h on the balance s heet o
B igs tring C orp. (OTC B B :B S GC ) B igs tring C orp. 's P atent-P ending T echnology R eceives B igs tring C orp. announced that its patent application for univers a l, recallable, eras able, s ecure a nd timed delivery ema il--ha s received a
Notice of A llowa nce from U . S . P atent and T ra demark Notice of Allowance from the U. S . P a tent and T radema rk Office.
O ffice
G iant Interac tive G roup, Inc. G iant Intera ctive G roup Inc. P rovides R evenue G uidance G ia nt Intera ctive G roup Inc. provided revenue guidance for the third quarter of 2009. T he company expects third quarter 2009 revenue to be
(NYS E :G A) for the T hird Quarter of 2009 between R MB 272. 0 million a nd R MB 291. 0 million.
NeuLion Incorporated (TS X:NLN) A merican Hockey L eague and NeuLion Incorporated NeuLion Incorpora ted a nnounced to-da y coverage of the A HL 2009-10 s ea s on to deliver live games and an online video des tination s ite to its
L aunch S econd S eas on of AH L Live to Deliver Unique worldwide fan bas e. T his s ea s on marks the s econd full year of a long-term partners hip with the A merica n Hockey League to deliver A HL
O nline E xperience to AHL F ans L ive. Not a va ilable anywhere els e on the Internet, AHL L ive offers hockey fans an opportunity to tune into their favorite team with a s imple
Internet connection. T his s ubs cription-bas ed s ervice gives fans an a ll-a cces s pas s to wa tch live ga mes for the entire s eas on or on a pay-per-
view bas is . Us ing NeuL ion technology, AHL Live will capture each of the league's 29 clubs and s trea m 1, 160 games throughout the AHL
regula r s eas on, which begins O ctober 2. T his exclus ive s ervice is the only wa y fa ns can watch live games online, where the viewing
experience expa nds the rea ch of the AHL to a globa l audience.
XING AG (XTR A: O1B C ) X ING A G A ppoints Helmut B ecker as C hief C ommercial XING AG ha s recruited Dr. Helmut B ecker as chief commercia l officer. He was s enior director of advertis ing and emarketing at E ba y
O fficer Deuts chland a nd MD of E bay Advertis ing.
OAO R B C Information S ys tems R aiffeis enba nk F iles B ankruptcy S uit A gains t R bc R a iffeis enbank filed s uit on T hurs day in Mos cow arbitration court s eeking a ba nkruptcy decla ra tion agains t O A O R B C Information S ys tems .
(R TS :R B C I) Information S ys tems It was reported earlier that R a iffeis enbank filed s uit a gains t R B C back in April to s ecure payment of a debt totaling R UB 108 million.
R a iffeis enbank plans to withdra w its bankruptcy declaration a gains t R B C Information S ys tems in the near future.
G iant Interac tive G roup, Inc. G iant Intera ctive G roup, Inc. , Q 3 2009 G uidance/U pdate G ia nt Intera ctive G roup, Inc. , Q 3 2009 G uidance/Update C all, Oct-01 2009
(NYS E :G A) C all, Oct-01-2009
Open Text C orp. (Nas daqG S : OTE X) O pen T ext C orp. R eleas es New V ers ion of E nterpris e O pen T ext C orp. a nnounced the lates t releas e of O pen T ext E nterpris e C onnect, the revolutiona ry us er experience for the O pen T ext E C M
C onnect S uite. T he new vers ion furthers E nterpris e C onnect a s a powerful content s ervice tha t ma kes it ea s y to blend content and proces s es within
us ers ' preferred working environments . In any enterpris e s oftware rollout-from des ktop a pplications to complex bus ines s applications -us er
a doption repres ents a ma jor hurdle. F or example, a s tudy by S and Hill G roup and Neochange found tha t 70% of buyers and providers
believe tha t 'effective us er adoption' is the primary driver to realize the full bus ines s va lue of enterpris e s oftware s olutions . E nterpris e
C onnect eliminates barriers and accelera tes delivery of content applications by allowing us ers to acces s and interact with bus ines s content
directly from familiar des ktop applications , s uch as Micros oft Office, Micros oft O utlook and W indows E xplorer. E nterpris e C onnect is one of a
s et of O pen T ext C ontent S ervices that are the foundation of the O pen T ext E C M S uite's s ervices -oriented architecture. T he new releas e of
E nterpris e C onnect, vers ion 1. 5, further s implifies the us er experience. U s ers can ta ke a dvantage of s uch functiona lity as drag a nd drop from
B right Things plc (AIM:B GT) B right T hings plc P ropos es Amendment to its A rticles of B right T hings plc announced a t its A G M to be held on October 29, 2009, a res olution will be propos ed to amend the a rticles of as s ociation of
A s s ociation the C ompa ny to reflect recent changes in company legis la tion in the UK .
Figure 7. Key Developments

Source. Capital IQ
Page 9
VALUATION
Online Gaming companies lead market-cap charts: Thirteen companies in our W eb 2.0 universe top US$1 billion in
market capitalization (Figure 8), down from 15 last week. Fifty-seven of the 90 companies have market caps under
US$100 million, with 25 under US$10 million. Online gaming companies dominate the top of the list, led by Tencent
Holdings with a market cap near US$30 billion.
Market C ap (US D m)
Tenc ent Holdings L td. 28,711. 6
Neteas e.c om Inc. 5,565.3
S handa Interac tive Entertainment L td. 3,337.9
Modern Times G roup Mtg A B 2,716.1
IA C/InterA c tiveCorp. 2,548.7
S ohu.c om Inc. 2,509.0
Perf ec t World Co. , L td. 2,250.1
G ree, Inc. 2,142.8
Open Tex t Corp. 2,097.2
Changy ou.c om Limited 1,818.9
G iant Interac tive G roup, Inc. 1,512.6
Chines e G amer International 1,255.2
V alueClic k Inc. 1,127.8
Mix i, Inc. 970. 1
K ings of t Co. Ltd. 968. 2
NEOWIZ G ames Corporation 676. 6
United Online Inc. 659. 8
S hutterfly , Inc. 399. 7
NetDragon WebS of t, Inc. 341. 0
S K Communic ations Co. , L td. 308. 1
XING A G 284. 5
GungHo Online Entertainment, Inc. 277. 4
CDC Corp. 264. 9
G igaMedia L td. 261. 7
G amania Digital Entertainment Co. , Ltd. 225. 2
Openw ave S y s tems Inc. 208. 7
OA O R B C Inf ormation S ys tems 208. 1
Myriad G roup A G 192. 5
The9 Limited 189. 7
DA DA S pA 159. 7
A ctoz S of t Co. , Ltd. 124. 6
Y edangOnline Corp. 105. 5
NeuL ion Inc orporated 98.6
G ameOn Co L td. 93.0
TheS treet.c om, Inc. 87.5
Tree. Com, Inc. 83.1
HanbitS of t, Inc. 76.7
Cy berplex Inc. 74.9
Fluid Mus ic Canada, Inc. 73.3
Frogs ter Interac tive Pic tures A G 68.4
G eoS entric Oy j 65.8
PNI Digital Media Inc. 59.8
DigitalTow n, Inc. 55.0
G ravity Co., L td 52.0
S park Netw orks , Inc. 47.1
Eolith Co. L td. 45.2
DXN Holdings B hd 39.4
NeX plore Corporation 36.3
Ngi Group Inc. 33.4
Webz en Inc. 32.1
A Q Interactive, Inc. 29.6
Northgate Tec hnologies Limited 29.4
S ocialw is e, Inc. 27.0
Wiz z ard S of tw are Corporation 23.5
Dolphin Digital Media, Inc. 19.9
B roadWebA s ia Inc. 19.5
L ookS mart, L td. 19.5
Quepas a Corp. 19.1
J umbuck Entertainment Limited 17.0
A cc eleriz e New Media, Inc. 16.8
Y nk K orea Inc. 16.8
L ingo Media Corporation 12.1
B ey ond Commerce, Inc. 11.3
UOMO Media, Inc 10.4
S pectrumDNA , Inc. 9.7
Ex tens ions , Inc. 8.9
B right Things plc 5.9
is eemedia Inc. 5.9
CornerWorld Corporation 5.7
Worlds .c om Inc. 5.2
MOK O.mobi Limited 4.9
DigitalPos t Interactive, Inc. 4.5
IA S Energy , Inc. 4.2
Magnitude Inf ormation S y s tems Inc. 4.1
S NA P Interactive, Inc. 3.8
V OIS , Inc. 3.3
L iveWorld Inc. 2.5
B igs tring Corp. 2.1
B etaw ave Corporation 2.0
Wy nds torm Corporation 1.8
Unis erve Communic ations Corp. 0.9
K A B Dis tribution Inc. 0.6
A s s ociated Media Holdings Inc. 0.6
CL ICK ER Inc. 0.6
The Parent Company 0.3
China G atew ay Corporation 0.0
S NM Global Holdings 0.0
Dibz International, Inc. 0.0
S ocial Media V enures , Inc. 0.0
0 500 1,000 1,500 2, 000 2, 500 3,000 3,500 4,000
Figure 8. Market Cap Ranking

Source. Capital IQ
Page 10
TEV/Revenue (LTM) averages 4.2x: The overall average TEV/Revenue (LTM) multiple for our group is 4.2x (vs. 5.4x last
week) (Figure 9). W ith broad-based decline in the sector over the week, only one company now trades over 25x revenue –
Dolphin Digital Media, Inc. (OTCBB:DPDM) at 35.9x. The median of 1.7x is down from 2.1x last week. Note that we
exclude multiples greater than 50x. Twenty-nine companies have multiples under 1.5x.
T E V/L T M R evenue (x)
40. 0
35.9
35. 0
30. 0
25. 0 22.6
19.2
20. 0
15.6
15. 0 13.0 13.7
12.112.6
9.4
10. 0
6.4 6.6 6.9 7.0
5.7 6.2
A vera ge, 4.2 4.9
3.9 4.1 4.2 4.5 4.6
5. 0 3.0 3.1 3.1 3.2
2.2 2.4 2.7 2.8
1.5 1.6 1.7 1.8 2.0 2.0
0.7 0.8 0.9 0.9 1.0 1.0 1.0 1.1 1.3 1.4 1.5
0.0 0.1 0.1 0.2 0.2 0.2 0.3 0.3 0.4 0.4 0.5 0.6 0.6 0.6 0.6 0.7 0.7
0. 0
N E O WIZ G ames C orporation

J umbuc k E nterta inment L imited
MO K O .mobi L imited
UO MO Media, Inc
C LIC K E R Inc.
G a mania Digital E ntertainment C o., Ltd.
G ungHo O nline E ntertainment, Inc.
P N I Digital Media Inc.
C hines e G amer Interna tional

U nis erve C ommunications C orp.
O AO R B C Information S y s tems
N orthgate T echnologies L imited
DXN Holdings B hd
C hangy ou.com L imited

G a meO n C o Ltd.
T ree.C om, Inc.
C DC C orp.
B ey ond C ommerc e, Inc.
S K C ommunica tions C o., Ltd.
DigitalP os t Intera ctive, Inc.
F luid Mus ic C a nada , Inc.
Dolphin Digital Media, Inc.

T he P a rent C ompany
Modern T imes G roup Mtg AB
G eoS entric O y j
S N M G loba l Holdings
NeuLion Inc orporated

C ornerWorld C orporation
Lingo Media C orporation

T heS treet.com, Inc .
S NAP Intera ctive, Inc.
United O nline Inc .
O pen T ex t C orp.
AQ Intera ctive, Inc .
IAC /InterAc tiveC orp.

C y berplex Inc .
S pa rk N etwork s , Inc .
G igaMedia Ltd.
V alueC lic k Inc .
NetDra gon WebS oft, Inc .
E olith C o. Ltd.
is eemedia Inc .
S ohu.com Inc .
Mix i, Inc .
F rogs ter Intera ctiv e P ictures AG
G ree, Inc .
As s ociated Media Holdings Inc .
T encent Holdings Ltd.

XIN G AG
L iveWorld Inc .
O penwave S y s tems Inc .
P erfect World C o., Ltd.
H anbitS oft, Inc .
Y nk K orea Inc .
Y edangO nline C orp.
S ocial Media V enures , Inc .

My riad G roup AG
S hutterfly , Inc .
Acceleriz e New Media , Inc .
K ings oft C o. Ltd.

DADA S pA
Ac toz S oft C o. , Ltd.
Wiz z ard S oftware C orporation
Figure 9. TEV/Revenue Ranking

Source. Capital IQ
TEV/Revenue (LTM) by country/exchange: W e have also calculated multiples based on where the companies are listed
or domiciled. Figure 10 shows the average TEV/Revenue multiples by stock exchange. The OTCBB has the largest
number of companies (18), trading at an average multiple of 8.2x (vs. 10.1x last week). On a geographic basis, the United
States has the most companies (38), trading at an average of 4.3x revenue (vs. 7.4x last week) (Figure 11). Ten of the
companies are Canadian (average 4.6x revenue).
Average TEV/LTM Revenue - By Exchange Average TEV/LTM Revenue - By Country

14.0 14.0
12.1 12.1
12.0 12.0
10.6
10.0 10.3 10.0
8.0 8.2 8.0 7.2
(x)
(x)
6.0 7.2
5.8 5.5 6.0
4.9 3.9 5.5 4.6
4.0 3.63.1 3.0 2.7 4.3 4.3
2.0 2.0 1.9 1.7 0.9 0.7 4.0 3.1
2.0 3.0
0.4 0.4 2.0 2.0 1.7 0.9 0.7
0.0 0.0 0.00.0 0.7 0.4
OTCPK
OTCBB
GTSM
NasdaqGM
HLSE
SEHK
TSE
OSE
KOSE
NasdaqGS
CM
RTS
OM
0.0 0.0 0.0 0.0

TSX
XTRA
AMEX
KLSE
BSE
AIM
NYSE
SWX
TSXV
ASX
Grand Total
Germany
Finland
China
Canada
Japan
United
Hong Kong
Malaysia
India
Russia
United
Italy
South
Taiwan
Australia
Switzerland
Sweden
# Companies 1 3 2 18 4 2 5 4 11 2 1 2 1 6 14 1 1 1 5 1 1 1 1
# Companies 1 3 10 2 10 6 38 2 1 8 1 1 1 1 1 1 1 88
Figures 10 & 11. TEV/Revenue Ranking (Exchange, Country)

Source. Capital IQ
Page 11
TEV/EBITDA (LTM) averages 13.6x: The average multiple for the 36 companies with positive EBITDA (and multiples
under 100x) is 12.8x LTM EBITDA (vs. 13.6x last week), led by Tencent Holdings (SEHK-700) 46.3x multiple (Figure 12).
Ten companies have EBITDA multiples under 7x. The median multiple is 10.4x (vs. 10.7x last week).
T E V/L T M E B IT DA (x)
50. 0
46. 3
44. 7
45. 0
40. 0
34. 1
35. 0
30. 0
24. 6 25. 0
25. 0 21. 6
20. 4
20. 0 18. 4
15. 4 15. 5
A verage, 12.8 13. 7
15. 0 12. 3 12. 6
10. 9 11. 8 12. 0
9. 2 9. 2 9. 6 10. 0 10. 4 10. 4 10. 5
10. 0 7. 6 8. 1
4. 6 4. 9 5. 7 6. 6
3. 6 4. 2
5. 0 1. 5 2. 3
0. 9 1. 3
0. 0
NE O WIZ G ames C orporation

J umbuck E ntertainment L imited
G amania Digital E ntertainment C o. , Ltd.
G ungH o O nline E ntertainment, Inc .
P NI Digital Media Inc .
C hines e G amer International

DXN Holdings B hd
C hangy ou. c om L imited

G ameO n C o L td.
C DC C orp.
S K C ommunic ations C o. , Ltd.

S NAP Interac tive, Inc .
U nited O nline Inc .
O pen T ex t C orp.
T heS treet. c om, Inc .

S park Network s , Inc .
C yberplex Inc.
NetDragon WebS oft, Inc.
S ohu. c om Inc .
V alueC lic k Inc .
IAC /InterAc tiveC orp.
Mix i, Inc .
G ree, Inc .
T enc ent Holdings L td.

XING AG
P erfec t World C o. , L td.
Y nk K orea Inc.
O penwave S y s tems Inc.
H anbitS oft, Inc.

S hutterfly , Inc.
K ings oft C o. L td.

DADA S pA
Actoz S oft C o. , L td.
Figure 12. TEV/EBITDA Ranking

Source. Capital IQ
TEV/EBITDA (LTM) by country/exchange: Figure 13 shows the average TEV/EBITDA multiples by stock exchange. The
OTCBB has the largest number of companies (18), trading at an average multiple of 2.3x. On a geographic basis, the
United States has the most companies (38), trading at an average of 10.1x EBITDA (Figure 14). Ten of the companies are
Canadian (average 13.7x EBITDA).
Average TEV/LTM EBITDA - By Exchange Average TEV/LTM EBITDA - By Country

30.0 25.0 25.0
25.0 21.1
20.0
20.0 23.1 18.8
21.1
18.8 15.0
(x)
15.0 15.1
13.7 13.7 12.5
(x)
13.713.6
11.8 10.9 10.5 9.2 10.9 10.4
10.0 10.0 10.1
6.6
5.0 5.7 4.9 4.2 2.3
1.5 0.3 6.6
5.0 4.9
0.0
0.3
OTCBB
GTSM
NasdaqGM
SEHK
KOSE
TSE
NasdaqGS
OSE
RTS
OM
CM
1.5
XTRA
TSX
KLSE
AMEX
TSXV
ASX
0.0 0.0
Germany
China
Canada
Japan
Hong Kong
United
Malaysia
Russia
Italy
South
Korea
States
Taiwan
Australia
Sweden
Switzerland
# Companies 4 3 2 6 2 5 5 1 14 1 1 4 1 2 18 2 1
# Companies 3 8 10 10 2 6 1 1 38 1 1 2 1 1
Figures 13 & 14. TEV/EBITDA Ranking (Exchange, Country)

Source. Capital IQ
Page 12
P/E (LTM) averages 18.0x: The average multiple for the 33 companies with positive earnings (and multiples under 100x)
is 18.0x LTM EPS (vs. 19.2x last week), led by GungHo Online Entertainment’s (OSE:3765) 60.0x multiple (Figure 15).
Ten companies have P/E multiples under 10x. The median is 12.9x.
P /E L T M (x)
70.0
58.6 60.0
60.0
50.0 47.1
44.6 45.4
40.0
34.9 35.2
29.2
30.0
19.3 19.4 20.0

20.0 A verage, 18.0 17.7
14.8
12.9 13.1 13.7 13.9
11.2 12.1 12.5
9.3 10.3
10.0 6.6 6.7 6.7
4.9
2.2 2.4 3.1 3.2
0.0
NE O W IZ G ames C orporation
J umbuck E ntertainment Limited
G amania Digital E ntertainment C o., Ltd.
G ungH o O nline E ntertainment, Inc.

C hines e G amer International
DXN H oldings B hd
C hangy ou.com Limited

G ameO n C o Ltd.

T he9 Limited
S handa Interactive E ntertainment Ltd.
Neteas e.com Inc.
S NAP Interactive, Inc.
O pen T ex t C orp.
C y berplex Inc.
G igaMedia Ltd.
IAC /InterActiveC orp.
S park Network s , Inc.
NetDragon W ebS oft, Inc.
S ohu.com Inc.
Worlds .com Inc.
G ree, Inc.
Mix i, Inc.
T encent H oldings Ltd.

XING AG
P erfect World C o., Ltd.
H anbitS oft, Inc.
K ings oft C o. Ltd.

Actoz S oft C o., Ltd.
Figure 15. P/E Ranking

Source. Capital IQ
P/E (LTM) by country/exchange: Figure 16 shows the average P/E multiples by stock exchange. The OTCBB has the
largest number of companies (18), trading at an average multiple of 13.3x. On a geographic basis, the United States has
the most companies (38), trading at an average of 12.9x earnings (Figure 17). Ten of the companies are Canadian
(average 20.8x EPS).
Average P/E - By Exchange Average P/E - By Country

70.0 45.0
60.0 40.4
60.0 40.0
50.0 35.0
30.0
40.0 33.9 32.0 29.2
30.6 25.0 24.8
(x)
29.2 20.8
(x)
30.0 20.0
19.4 13.2 13.1
20.0 13.3 15.0
13.1 12.9 10.6 13.0 12.9
6.7 6.6
10.0 4.9 10.0 6.6
1.8 4.9
0.0 0.0 5.0 0.0
OTCBB
GTSM
NasdaqGM
OSE
TSE
SEHK
KOSE
NasdaqGS
OM
XTRA
AMEX
TSX
KLSE
NYSE
0.0 0.0
ASX
Germany
Japan
Canada
China
United
Malaysia
Hong Kong
South
Korea
States
Taiwan
Australia
Sweden
Switzerland
# Companies 1 5 2 3 2 6 18 1 2 14 4 1 2 1 5
# Companies 6 2 3 10 10 1 8 38 1 2 1 1
Figures 16 & 17. P/E Ranking (Exchange, Country)

Source. Capital IQ
Page 13
UPCOMING EVENTS
E arnings C alendar
C ompany Date & Time Quarter C onf C all Details
S hutterfly, Inc. (Nas daqG S : S F L Y ) W ednes day, O ctober 28, 2009 2: 00 P M (P T ) Q 3 2009 719-325-4880
T ree. C om, Inc. (Nas daqG M: T R E E ) F riday, O ctober 30, 2009 11: 00 AM (E T ) Q 3 2009 888-428-9470
Figure 18. Earnings Calendar

Page 14

Pric e P erformanc e
C ompany Name C urrenc y Tic ker E xc hange US D Market C ap ($m) C urrent P ric e 1 Wk 1 Mth 3 Mth 6 Mth 1 Yr 52 Week
A ccelerize New Media, Inc. US D AC L Z OT C B B 16.8 0.60 15.4% 5.3% 17.6% 87.5% 27.7% -13.0%
A ctoz S oft C o. , L td. KR W A052790 K OS E 124.6 17, 250 -10.2% -0.9% -40.2% 25.0% 109. 1% -52.1%
A Q Interactive, Inc. JPY 3838 TS E 29.6 48, 650 0. 2% -1.9% -28.6% 6. 0% 52.0% -41.4%
A s s ociated Media H oldings 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%
B igs tring C orp. US D BSGC OT C B B 2.1 0.04 9. 1% 63.6% 5.9% 157.1% 38.5% -44.6%
B eta wave C orpora tion US D B W AV OT C B B 2.0 0.07 -22.2% 0.0% -30.0% -51.7% -68. 2% -76.3%
B eyond C ommerce, Inc. US D B Y OC OT C B B 11.3 0.24 96.5% 16.0% -45.8% -78.4% -88. 4% -90.1%
B right T hings plc GB P AIM:B G T A IM 5.9 0.01 0. 0% 0.0% -8.3% -8.3% 46.3% -44.3%
B roadW ebA s ia Inc. US D BWBA OT C P K 19.5 0.23 -22.8% -22.8% -54.9% -77.2% -84. 7% -92.1%
C DC C orp. US D C H IN.A Nas da qG S 264.9 2.50 -4.9% 5.0% 82.5% 123.2% 117. 4% -36.2%
C ha ngyou.com Limited US D C Y OU Nas da qG S 1, 818.9 33.07 -12.4% -15.3% -14.0% 42.2% NM -31.6%
C hina G a tewa y C orporation US D CGWY OT C P K 0.0 0.00 -86.7% -86.7% -86.7% 0. 0% -80. 0% -93.3%
C hines e G a mer International TWD G T S M:3083 GTS M 1, 255.2 484.00 7. 1% 7.0% 11.1% 160.2% 656. 3% -6.7%
C LIC K E R Inc. US D CLK Z OT C B B 0.6 0.01 -24.7% -6.7% 55.6% -22.2% -97. 9% -98.3%
C ornerW orld C orpora tion US D CW R L OT C B B 5.7 0.06 0. 0% 9.1% 0.0% -57.1% -70. 0% -87.2%
C yberplex Inc. C AD T S X: C X TS X 74.9 1.25 -3.1% 3.3% -16.7% 19.0% 171. 7% -37.2%
DADA S pA E UR C M:DA CM 159.7 6.73 -2.0% 6.6% 7.5% 56.5% 0.3% -24.9%
DXN Holdings B hd MY R DXN K LS E 39.4 0.60 0. 8% 10.1% 62.2% 114.3% 71.4% -3.2%
Dibz Interna tional, Inc. US D DIB Z OT C P K 0.0 0.00 20.0% NM 20.0% -88.0% -97. 6% -97.6%
DigitalP os t Intera ctive, Inc. US D DG LP OT C B B 4.5 0.06 -7.9% 5.5% 45.0% 190.0% -10. 8% -41.4%
DigitalT own, Inc. US D DG T W OT C B B 55.0 2.01 -23.9% 14.9% -2.0% -19.6% -33. 0% -42.6%
Dolphin Digital Media, Inc. US D DP DM OT C B B 19.9 0.37 -21.1% -15.7% -7.3% -37.1% -56. 4% -66.3%
E olith C o. L td. KR W A041060 K OS E 45.2 745.00 0. 7% -21.6% -8.0% 27.4% 31.9% -35.8%
E xtens ions , Inc. US D E XT I OT C P K 8.9 0.20 -16.7% 0.0% 0.0% 33.3% 100. 0% -80.2%
F luid Mus ic C anada, Inc. C AD T S X: F MN TS X 73.3 1.52 31.0% 19.7% 133.8% 360.6% 280. 0% -1.9%
F rogs ter Intera ctive P ictures AG E UR FR G XT R A 68.4 18.50 2. 7% -2.7% 66.7% 166.2% 306. 6% -6.9%
G amania Digita l E ntertainment C o., L td. TWD 6180 GTS M 225.2 48.10 0. 2% -5.5% -18.5% 41.5% 223. 9% -30.1%
G ameO n C o L td. JPY 3812 TS E 93.0 86, 000 -6.5% -15.7% -29.5% -5.3% 33.3% -43.4%
G eoS entric Oyj E UR G E O1V H LS E 65.8 0.05 0. 0% 0.0% 25.0% 66.7% 25.0% -16.7%
G ia nt Interactive G roup, Inc. US D GA NY S E 1, 512.6 6.68 -13.7% -12.7% -12.7% -8.5% 16.8% -30.2%
G igaMedia L td. US D G IG M Nas da qG S 261.7 4.80 -10.1% 0.2% -8.6% -13.4% -24. 6% -39.1%
G ra vity C o., Ltd US D GR VY Nas da qG M 52.0 1.87 -2.1% 3.9% 76.4% 88.9% 142. 9% -28.9%
G ree, Inc. JPY T S E :3632 TS E 2, 142.8 4, 280 -12.7% 3.6% 16.8% 50.2% NM -19.7%
G ungH o Online E ntertainment, Inc. JPY 3765 OS E 277.4 216, 500 -9.0% -15.7% -14.1% 67.2% 77.2% -22.7%
H anbitS oft, Inc. KR W A047080 K OS E 76.7 4, 180 -5.2% 7.0% -13.6% 3. 5% 59.5% -37.0%
IAC /InterA ctiveC orp. US D IA C I Nas da qG S 2, 548.7 19.25 -7.8% 2.5% 21.8% 19.8% 26.2% -9.5%
IAS E nergy, Inc. US D IA S A. E OT C B B 4.2 0.06 -14.4% -55.6% -68.4% -14.3% -50. 0% -78.6%
is eemedia Inc. C AD IE E T S XV 5.9 0.13 -3.8% 150.0% 47.1% 13.6% 56.3% -21.9%
J umbuck E ntertainment Limited AU D AS X: J MB AS X 17.0 0.40 2. 6% 0.0% 5.3% -16.7% -18. 4% -34.4%
K AB Dis tribution Inc. C AD T S X: K AB TS X 0.6 0.01 -50.0% -99.2% -99.2% -98.6% -99. 4% -99.2%
K ings oft C o. L td. HK D 3888 S E HK 968.2 6.88 -2.7% -22.6% 12.8% 115.0% 300. 0% -27.3%
L ingo Media C orpora tion C AD T S XV :LM T S XV 12.1 1.02 13.3% 2.0% -14.3% -14.3% -37. 8% -40.4%
L iveW orld Inc. US D LV W D OT C P K 2.5 0.08 60.0% 60.0% 14.3% -38.5% -27. 3% -68.0%
L ookS mart, L td. US D LO OK Nas da qG M 19.5 1.14 -0.9% -2.6% -9.2% -2.6% -38. 4% -54.9%
Ma gnitude Information S ys tems Inc. US D MAG Y OT C B B 4.1 0.01 -25.0% 38.5% -3.2% -40.0% -64. 0% -70.0%
Mixi, Inc. JPY 2121 TS E 970.1 563,000.00 -4.4% -1.2% -4.3% 42.5% 12.6% -24.6%
Modern T imes G roup Mtg AB SEK MT G B OM 2, 716.1 287.00 -7.0% -3.2% 30.5% 88.8% 67.3% -12.2%
MO K O .mobi L imited AU D MK B AS X 4.9 0.07 -14.5% -13.3% -7.1% -33.7% 18.2% -35.0%
Myriad G roup AG C HF MY R N S WX 192.5 4.49 -0.2% 0.0% -9.3% 6. 9% -16. 7% -48.0%
NE O W IZ G ames C orporation KR W A095660 K OS E 676.6 38,300.00 -11.1% 4.5% 3.7% 45.6% 430. 1% -14.7%
NetDra gon W ebS oft, Inc. HK D 777 S E HK 341.0 5.00 -0.6% -13.6% -18.7% 22.5% 56.3% -30.1%
Netea s e. com Inc. US D NT E S Nas da qG S 5, 565.3 43.00 -2.5% 1.1% 26.3% 56.5% 130. 2% -11.3%
NeuLion Incorpora ted C AD T S X: NL N TS X 98.6 0.94 -4.1% -14.5% 34.3% 74.1% NM -27.7%
NeXplore C orpora tion US D NXP C OT C P K 36.3 0.65 18.2% 18.2% 8.3% 8. 3% 30.0% -55.2%
Ngi G roup Inc. JPY 2497 TS E 33.4 24,100.00 -0.4% -19.6% -35.7% -12.0% -64. 7% -76.5%
Northgate T echnologies Limited INR 590057 BSE 29.4 40.40 -6.6% -11.1% 15.9% -3.1% -56. 5% -82.9%
O pen T ext C orp. US D OT E X Nas da qG S 2, 097.2 37.35 -0.5% 7.5% 7.1% 10.0% 46.4% -7.1%
O penwa ve S ys tems Inc. US D OP W V Nas da qG S 208.7 2.50 -3.8% -10.7% 15.7% 113.7% 187. 4% -20.1%
P erfect W orld C o., Ltd. US D PWRD Nas da qG S 2, 250.1 45.75 2. 1% 14.9% 66.8% 168.3% 157. 7% -9.4%
P NI Digital Media Inc. C AD T S XV :P N T S XV 59.8 1.90 0. 0% 8.6% 26.7% 15.2% 5.6% -18.1%
Q uepa s a C orp. US D QP S A OT C B B 19.1 1.50 -12.3% 7.1% 66.7% 70.5% -45. 1% -50.3%
O AO R B C Information S ys tems US D R BCI R TS 208.1 1.50 29.3% 42.9% 62.5% 265.9% -62. 5% -80.9%
S ha nda Interactive E nterta inment L td. US D S NDA Nas da qG S 3, 337.9 49.63 2. 9% -0.1% -10.2% 10.1% 104. 2% -23.6%
S hutterfly, Inc. US D S F LY Nas da qG S 399.7 15.70 -8.9% 17.7% 25.2% 48.4% 101. 0% -13.4%
S K C ommunications C o. , L td. KR W A066270 K OS E 308.1 8,780.00 -0.2% -2.0% -13.5% -7.5% 8.8% -31.7%
S NA P Intera ctive, Inc. US D S TVI OT C B B 3.8 0.35 -30.0% -12.5% -22.2% -53.3% 75.0% -67.6%
S NM G loba l H oldings US D S NMN OT C P K 0.0 0.00 0. 0% -28.6% -78.6% 650.0% -99. 6% -99.6%
S ocial Media V enures , Inc. US D S MV I OT C P K 0.0 0.10 0. 0% -33.3% -60.0% -88.6% -83. 6% -98.0%
S ocialwis e, Inc. US D S CLW OT C B B 27.0 0.61 1. 7% 8.9% -15.3% 64.9% -70. 7% -73.6%
S ohu.com Inc. US D S O HU Nas da qG S 2, 509.0 65.45 -2.6% 4.5% 13.6% 42.2% 35.3% -9.5%
S pa rk Networks , Inc. US D LO V A ME X 47.1 2.29 -1.7% 1.8% -8.4% 4. 1% -28. 4% -42.8%
S pectrumDNA, Inc. US D S P XA OT C B B 9.7 0.20 53.8% -9.1% -20.0% 33.3% 33.3% -55.6%
T encent H oldings Ltd. HK D 700 S E HK 28,711. 6 123 0. 2% 0.2% 37.2% 99.0% 171. 6% -7.1%
T he P a rent C ompany US D K IDS . Q OT C P K 0.3 0.01 -19.3% 10.0% -59.7% -30.9% -98. 9% -98.9%
T he9 L imited US D NC T Y Nas da qG S 189.7 7.56 -3.2% -2.1% -18.9% -45.0% -48. 2% -57.4%
T heS treet.com, Inc. US D TS CM Nas da qG M 87.5 2.86 -1.0% 17.7% 45.2% 43.0% -26. 5% -43.3%
T ree.C om, Inc. US D TR E E Nas da qG M 83.1 7.69 4. 3% 2.9% -16.4% 51.1% 257. 7% -41.2%
U nis erve C ommunica tions C orp. C AD T S XV :US S T S XV 0.9 0.04 0. 0% -11.1% -50.0% 0. 0% -77. 8% -77.8%
U nited O nline Inc. US D UNT D Nas da qG S 659.8 7.87 -3.6% 7.5% 19.8% 58.4% -6.1% -16.8%
U OMO Media, Inc US D UO MO OT C B B 10.4 0.12 -4.8% -14.3% -7.7% 9. 1% -36. 8% -88.7%
V alueC lick Inc. US D V CLK Nas da qG S 1, 127.8 12.94 0. 1% 26.0% 35.5% 37.1% 83.5% -4.4%
V OIS , Inc. US D V O IS OT C B B 3.3 0.00 -11.1% -20.0% -55.6% 33.3% -46. 7% -82.6%
W ebzen Inc. US D W ZE N Nas da qG M 32.1 2.71 -9.1% -6.2% -30.7% 10.2% 194. 6% -42.1%
W izzard S oftwa re C orporation US D W ZE A ME X 23.5 0.47 -8.8% 8.1% -7.0% -32.6% -51. 0% -73.1%
W orlds .com Inc. US D W DDD OT C B B 5.2 0.10 -16.7% -16.7% -13.0% -41.2% -63. 0% -63.0%
W ynds torm C orpora tion US D W Y ND OT C P K 1.8 0.10 0. 0% 0.0% 185.7% -16.7% -54. 5% -83.3%
XING A G E UR O1B C XT R A 284.5 36.85 9. 4% 16.6% 17.5% 31.0% 48.0% -0.1%
Y eda ngOnline C orp. KR W A052770 K OS E 105.5 8,400.00 -5.1% -3.8% -6.6% -7.7% 29.2% -32.3%
Y nk K orea Inc. KR W A023770 K OS E 16.8 3,745.00 -0.1% -11.9% -44.5% -18.6% -53. 2% -69.8%
H igh 96.5% 150.0% 833.3% 650.0% 656. 3% -0.1%
L ow -86.7% -99.2% -99.2% -98.6% -99. 6% -99.6%
Average 740.3 -3.0% -0.4% 11.9% 37.6% 35.9% -46.0%
Media n -2.6% 0.0% -4.3% 15.2% 14.7% -41.4%
Figure 19. Price Performance

Source. Capital IQ
Page 15

Valuation Multiples
P rimary US D Market TE V/L TM TE V/ NTM TE V/L TM TE V/NTM
C ompany Name S ec tor C ountry E xc hange Ticker C ap ($m) R evenue R evenue E B ITDA E B ITDA P /L TM E P S P /NTM E P S P /TangB V
Accelerize New Media, Inc. Direct Marketing U nited S ta tes OTCB B AC LZ 16.8 4.9x - - - - - -
Actoz S oft C o., Ltd. G aming S outh K orea K OS E A052790 124.6 0.8x - 3. 6x - 17.7x - 2.0x
AQ Intera ctive, Inc. G aming J apan TS E 3838 29.6 0.1x 0.1x - - - 8.8x 0.5x
As s ocia ted Media Holdings Inc. Mobile U nited S ta tes OTCP K AS MH 0.6 15.6x - - - - - -
B igs tring C orp. Ins ta nt Mes s aging U nited S ta tes OTCB B BSGC 2.1 - - - - - - -
B etawave C orpora tion Media U nited S ta tes OTCB B B W AV 2.0 - - - - - - 0.4x
B eyond C ommerce, Inc. S ocial Networking U nited S ta tes OTCB B B YOC 11.3 1.5x - - - - - -
B right T hings plc S ocial Networking U nited K ingdom AIM AIM:B G T 5.9 - - - - - - -
B roadW ebAs ia Inc. S ocial Networking U nited S ta tes OTCP K BWBA 19.5 - - - - - - -
C DC C orp. G aming H ong K ong N as da qG S C HIN.A 264.9 0.7x 0.8x 10.4x 7.3x - - -
C hangyou.com Limited G aming C hina N as da qG S C Y OU 1,818.9 6.4x 5.0x 10.5x 8.6x 12.5x 11.2x 12.3x
C hina G atewa y C orpora tion Mobile U nited S ta tes OTCP K CGW Y 0.0 0.0x - - - - - -
C hines e G amer Interna tional G aming T a iwa n GTS M G T S M:3083 1,255.2 19.2x 18.1x 34.1x 29.4x 44.6x 26.6x 21.5x
C L IC K E R Inc. Direct Marketing U nited S ta tes OTCB B C LK Z 0.6 0.3x - - - - - -
C ornerW orld C orporation C ontent U nited S ta tes OTCB B CW R L 5.7 2.4x - - - - - -
C yberplex Inc. A dvertis ing C ana da TS X T S X: C X 74.9 0.6x 0.5x 5. 7x 4.3x 6.7x 7.6x 3.0x
DA DA S pA S ocial Networking Italy CM C M:DA 159.7 0.9x 0.8x 6. 6x 5.6x - 15.1x -
DXN Holdings B hd S ocial Networking Mala ys ia K LS E DXN 39.4 0.7x - 4. 9x - 6.6x - 0.8x
Dibz Interna tiona l, Inc. S NS Apps U nited S ta tes OTCP K DIB Z 0.0 - - - - - - -
DigitalP os t Interactive, Inc. C ontent U nited S ta tes OTCB B DG L P 4.5 6.6x - - - - - -
DigitalT own, Inc. S ocial Networking U nited S ta tes OTCB B DG T W 55.0 - - - - - - -
Dolphin Digital Media, Inc. S ocial Networking U nited S ta tes OTCB B DP DM 19.9 35.9x 1.3x - - - 1.5x -
E olith C o. L td. G aming S outh K orea K OS E A041060 45.2 3.1x - - - - - 4.1x
E xtens ions , Inc. C ontent U nited S ta tes OTCP K E XT I 8.9 - - - - - - -
F luid Mus ic C a nada, Inc. Media U nited S ta tes TS X T S X:F MN 73.3 12.6x 11.2x - - - - 6.9x
F rogs ter Interactive P ictures A G G aming G erma ny XT R A FR G 68.4 7.0x - - - - - 8.5x
G amania Digital E ntertainment C o., Ltd. G aming T a iwa n GTS M 6180 225.2 1.4x - 8. 1x - 19.4x - 2.9x
G ameO n C o Ltd. G aming J apan TS E 3812 93.0 0.2x - 0. 9x - 9.3x - 1.1x
G eoS entric Oyj Mobile F inland H LS E G E O1V 65.8 12.1x - - - - - 54.3x
G iant Interactive G roup, Inc. G aming C hina NY S E GA 1,512.6 - - - - 1.8x 13.5x 0.3x
G igaMedia Ltd. G aming T a iwa n N as da qG S G IG M 261.7 1.0x 1.0x - 4.8x 10.3x 9.7x 2.2x
G ravity C o., Ltd G aming S outh K orea N as da qG M GR VY 52.0 - - - - 0.0x - 0.0x
G ree, Inc. S ocial Networking J apan TS E T S E : 3632 2,142.8 13.0x 7.3x 21.6x 12.8x 45.4x 17.6x 21.0x
G ungH o O nline E nterta inment, Inc. Media J apan OS E 3765 277.4 2.0x - 9. 2x - 60.0x - 20.7x
Ha nbitS oft, Inc. G aming S outh K orea K OS E A047080 76.7 1.0x - 44.7x - 13.7x - 2.2x
IAC /InterActiveC orp. Media U nited S ta tes N as da qG S IAC I 2,548.7 0.6x 0.6x 15.4x 4.7x 12.1x 33.8x 1.2x
IAS E nergy, Inc. V ideo C ana da OTCB B IAS A.E 4.2 - - - - - - -
is eemedia Inc. C ontent C ana da T S XV IE E 5.9 3.1x - - - - - 4.8x
J umbuck E ntertainment Limited S ocial Networking Aus tra lia AS X AS X:J MB 17.0 0.6x 0.6x 1. 5x 1.9x 4.9x 4.7x 1.6x
K A B Dis tribution Inc. C ontent C ana da TS X T S X:K AB 0.6 - - - - - - 0.0x
K ings oft C o. Ltd. G aming C hina S E HK 3888 968.2 6.9x 5.6x 15.5x 10.7x 19.3x 13.9x 5.4x
Lingo Media C orpora tion L earning C ana da T S XV T S XV : LM 12.1 9.4x - - - - - 20.9x
LiveW orld Inc. S ocial Networking U nited S ta tes OTCP K LV W D 2.5 0.1x - - - - - 1.1x
LookS ma rt, L td. Direct Marketing U nited S ta tes N as da qG M L OOK 19.5 - - - - - - 0.8x
Magnitude Information S ys tems Inc. S ocial Networking U nited S ta tes OTCB B MA G Y 4.1 - - - - - - -
Mixi, Inc. S ocial Networking J apan TS E 2121 970.1 6.2x 5.3x 18.4x 17.0x 47.1x 41.2x 6.4x
Modern T imes G roup Mtg AB Media S weden OM MT G B 2,716.1 1.7x 1.6x 10.9x 11.8x 13.1x 13.7x -
MOK O .mobi Limited S ocial Networking Aus tra lia AS X MK B 4.9 5.7x - - - - - 6.2x
Myriad G roup AG Mobile S witzerla nd SWX MY R N 192.5 3.0x - - - - - -
NE OW IZ G ames C orporation G aming S outh K orea K OS E A095660 676.6 3.2x 2.8x 12.0x 9.9x 35.2x 8.5x 17.8x
NetDra gon W ebS oft, Inc. G aming C hina S E HK 777 341.0 2.2x - 7. 6x - 13.9x - 1.8x
Netea s e.com Inc. G aming C hina N as da qG S NT E S 5,565.3 - - - - 3.1x 17.3x 0.9x
NeuLion Incorporated V ideo C ana da TS X T S X:NL N 98.6 4.2x - - - - - 7.2x
NeXplore C orporation C ontent U nited S ta tes OTCP K NXP C 36.3 - - - - - - -
Ngi G roup Inc. Media J apan TS E 2497 33.4 - - - - - - 0.6x
Northgate T echnologies Limited Direct Marketing India BS E 590057 29.4 0.4x - - - - 1.6x -
O pen T ext C orp. C ollabora tion C ana da N as da qG S OT E X 2,097.2 2.7x 2.3x 10.4x 8.6x 34.9x 13.2x -
O penwave S ys tems Inc. Mobile U nited S ta tes N as da qG S OP W V 208.7 0.5x 0.5x 20.4x 4.5x - 39.1x 3.0x
P erfect W orld C o., Ltd. G aming C hina N as da qG S PWRD 2,250.1 0.7x 3.7x 1. 3x 7.0x 3.2x 14.6x 1.5x
P N I Digital Media Inc. Digita l Ima ging C ana da T S XV T S XV :P N 59.8 2.8x 2.3x 25.0x 7.5x - 15.2x 20.9x
Q uepa s a C orp. S ocial Networking U nited S ta tes OTCB B QP S A 19.1 - - - - - - -
O AO R B C Information S ys tems Media R us s ia R TS R BCI 208.1 0.0x 1.0x 0. 3x 5.3x - 4.7x -
S handa Interactive E nterta inment Ltd. G aming C hina N as da qG S S NDA 3,337.9 - - - - 2.4x 13.1x 0.9x
S hutterfly, Inc. Digita l Ima ging U nited S ta tes N as da qG S S FLY 399.7 1.5x 1.5x 12.3x 7.7x - - 2.4x
S K C ommunications C o., Ltd. S earch S outh K orea K OS E A066270 308.1 1.6x - 24.6x - - - -
S N AP Interactive, Inc. Dating U nited S ta tes OTCB B S TVI 3.8 0.6x - 2. 3x - 6.7x - 2.1x
S N M G lobal Holdings Media U nited S ta tes OTCP K S NMN 0.0 1.1x - - - - - -
S ocial Media V enures , Inc. S ocial Networking U nited S ta tes OTCP K S MV I 0.0 4.5x - - - - - -
S ocialwis e, Inc. S ocial Networking U nited S ta tes OTCB B S CLW 27.0 - - - - - - -
S ohu.com Inc. G aming C hina N as da qG S S O HU 2,509.0 4.1x 3.6x 9. 6x 7.9x 14.8x 18.0x 4.9x
S park N etworks , Inc. S ocial Networking U nited S ta tes AME X L OV 47.1 0.9x - 4. 2x - 12.9x - 48.2x
S pectrumDN A, Inc. Media U nited S ta tes OTCB B S P XA 9.7 - - - - - - 97.1x
T encent Holdings Ltd. P orta l C hina S E HK 700 28,711.6 22.6x 17.3x 46.3x 41.1x 58.6x 49.0x 26.1x
T he P a rent C ompany Media U nited S ta tes OTCP K K IDS .Q 0.3 0.2x 0.2x - 12.9x - - -
T he9 L imited G aming C hina N as da qG S NC T Y 189.7 - - - - 2.2x - 0.1x
T heS treet.com, Inc. Media U nited S ta tes N as da qG M TS CM 87.5 0.3x 0.4x 11.8x - - - 1.1x
T ree.C om, Inc. P orta l U nited S ta tes N as da qG M TREE 83.1 0.4x 0.4x - 8.0x - 49.5x 1.0x
Unis erve C ommunications C orp. S ocial Networking C ana da T S XV T S XV :US S 0.9 0.2x - - - - - -
United Online Inc. Media U nited S ta tes N as da qG S U NT D 659.8 1.0x 1.0x 4. 6x 3.9x - 6.0x -
UO MO Media, Inc Media C ana da OTCB B UO MO 10.4 13.7x - - - - - -
V a lueC lick Inc. Media U nited S ta tes N as da qG S V CLK 1,127.8 1.8x 1.8x 10.0x 7.1x - 20.2x 7.3x
V O IS , Inc. S ocial Networking U nited S ta tes OTCB B V OIS 3.3 - - - - - - 21.1x
W ebzen Inc. G aming S outh K orea N as da qG M W ZE N 32.1 - - - - 0.0x - 0.0x
W izzard S oftware C orporation P odca s ting U nited S ta tes AME X W ZE 23.5 4.6x - - - - - -
W orlds .com Inc. C ontent U nited S ta tes OTCB B W DDD 5.2 - - - - 20.0x - -
W ynds torm C orporation C ontent U nited S ta tes OTCP K W Y ND 1.8 - - - - - - -
XIN G AG S ocial Networking G erma ny XT R A O1B C 284.5 3.9x 3.0x 13.7x 8.2x 29.2x 16.7x 9.1x
Y eda ngO nline C orp. G aming S outh K orea K OS E A052770 105.5 2.0x - 9. 2x - 11.2x - 3.5x
Y nk K orea Inc. G aming S outh K orea K OS E A023770 16.8 1.3x - 12.6x - - - 0.8x
High 28,711.6 35.9x 18.1x 46.3x 41.1x 60.0x 49.5x 97.1x
Low 0.0 0.0x 0.1x 0. 3x 1.9x 0.0x 1.5x 0.0x
Average 740.3 4.2x 3.4x 12.8x 9.9x 18.0x 17.4x 9.3x
Median 47.1 1.7x 1.5x 10.4x 7.8x 12.9x 13.9x 2.9x
Figure 20. Valuation Comparison

Source. Capital IQ
Page 16

S ummary by C ountry
C ompany Name US D Market C ap ($m) Avg US D Market C ap ($m) US D L TM Total R ev ($m) US D L TM Total E B ITDA ($m) E B ITDA %
United S tates 38 C hina 49, 633.4 C hina 4, 963.3 C hina 4, 152.4 C hina 2,070.2 C hina 48. 8%
C anada 10 United S ta tes 5, 811.3 S weden 2, 974.2 United S tates 3, 887.3 S weden 304.6 Aus tralia 42. 8%
C hina 10 J apan 3, 871.5 J a pan 645.3 S weden 1, 982.6 United S tates 290.0 T aiwan 37. 1%
S outh K orea 8 S weden 2, 974.2 T a iwan 577.9 C a na da 1, 015.0 C a na da 200.0 J apan 24. 2%
J apan 6 C anada 2, 488.2 Hong K ong 294.6 S outh K orea 707.3 J a pa n 186.0 S weden 15. 4%
T aiwan 3 T aiwa n 1, 733.6 C a nada 248.8 J a pa n 634.4 S outh K orea 121.9 Malays ia 14. 4%
Aus tralia 2 S outh K orea 1, 527.4 S outh K orea 190.9 T a iwan 385.8 T a iwan 59.8 Italy 13. 1%
G ermany 2 G erma ny 317.0 Ita ly 165.4 Hong K ong 361.6 Ita ly 31.9 R us s ia 13. 1%
S witzerland 1 Hong K ong 294.6 R us s ia 160.9 Ita ly 242.6 Hong K ong 25.1 S outh K orea 12. 7%
Hong K ong 1 Italy 165.4 G ermany 158.5 R us s ia 156.2 R us s ia 20.4 Hong K ong 6. 9%
F inland 1 R us s ia 160.9 United S tates 152.9 India 82.8 G ermany 12.5 S witzerland 1. 9%
Italy 1 S witzerland 92.0 S witzerla nd 92.0 Ma la ys ia 77.1 Ma la ys ia 11.1 C anada -8. 5%
United K ingdom 1 F inland 65.9 F inland 65.9 G ermany 68.7 Aus tra lia 4.5 G ermany -9. 1%
India 1 Malays ia 39.8 Ma la ys ia 39.8 S witzerla nd 40.0 S witzerla nd 0.8 United S tates -21.9%
S weden 1 India 31.0 India 31.0 Aus tra lia 17.8 Norway -1.1 India -50.0%
R us s ia 1 Aus tralia 22.1 Aus tralia 11.0 F inla nd 5.5 United K ingdom -2.7 Norway -50.6%
Mala ys ia 1 United K ingdom 6.0 United K ingdom 6.0 Norway 2.3 F inla nd -17.5 United K ingdom NA
Norway 1 Norwa y 0.1 Norway 0.1 United K ingdom 0.0 India -41.4 F inland NA
G rand Total 89 G rand Total 69,234.6 G rand Total 777.9 G rand Total 13,819.5 G rand Total 3,276.1 G rand Total 5.1%
Figure 21. Comparison by Country

Source. Capital IQ

S ummary by E xc hange
C ompany Name US D Market C ap ($m) Avg US D Market C ap ($m) US D L TM Total R ev ($m) US D L TM Total E B ITDA ($m) E B ITDA %
OT C B B 18 S E HK 31, 520. 4 S E HK 10,506. 8 OM 1,982. 6 Na s daqG S 1, 796. 0 NY S E 62. 5%

Na s daqG S 14 Nas da qG S 24, 385. 7 OM 2,974. 2 S E HK 540. 0 S E HK 767. 5 AS X 42. 8%
OT C P K 11 TS E 3, 569. 2 NY S E 1,750. 4 Na s daqG S 498. 6 OM 304. 6 S E HK 40. 6%
K OS E 6 OM 2, 974. 2 Nas da qG S 1,741. 8 CM 242. 6 TS E 160. 2 GTS M 37. 1%
TS E 5 NY S E 1, 750. 4 GTS M 715. 0 NY S E 198. 5 NY S E 124. 1 Nas da qG S 30. 4%
Na s daqG M 5 K OS E 1, 437. 0 TSE 713. 8 RTS 156. 2 K OS E 103. 2 TSE 24. 6%
TS X 4 GTS M 1, 430. 0 OS E 302. 3 OS E 116. 1 GTS M 59. 8 OS E 22. 2%
T S XV 4 XT R A 317. 0 K OS E 239. 5 K OS E 106. 0 CM 31. 9 OM 15. 4%
S E HK 3 OS E 302. 3 CM 165. 4 TS E 103. 7 OS E 25. 8 K LS E 14. 4%
AME X 2 Nas da qG M 279. 7 R TS 160. 9 GTS M 101. 1 RTS 20. 4 CM 13. 1%
AS X 2 TS X 243. 6 XT R A 158. 5 BSE 82. 8 Na s daqG M 15. 6 R TS 13. 1%
XT R A 2 OT C B B 230. 9 SWX 92. 0 Na s daqG M 82. 4 XT R A 12. 5 K OS E 9. 6%
GTS M 2 CM 165. 4 HLS E 65. 9 K LS E 77. 1 K LS E 11. 1 Nas da qG M 7. 7%
SWX 1 R TS 160. 9 TSX 60. 9 TS X 46. 4 AME X 6. 2 T S XV 5. 6%
HL S E 1 SWX 92. 0 Nas da qG M 55. 9 SWX 40. 0 AS X 4. 5 S WX 1. 9%
CM 1 T S XV 76. 6 K LS E 39. 8 XT R A 34. 3 SWX 0. 8 XT R A -9. 1%
BS E 1 AME X 68. 5 AME X 34. 2 AME X 27. 9 OT C NO -1. 1 A ME X -31. 8%
NY S E 1 HLS E 65. 9 BS E 31. 0 OT C P K 16. 5 AIM -2. 7 TSX -34. 7%
OS E 1 OT C P K 65. 8 T S XV 19. 1 T S XV 12. 0 TS X -4. 3 OTCB B -38. 8%
AIM 1 K LS E 39. 8 OT C B B 12. 8 AS X 8. 9 T S XV -4. 6 OTCP K -41. 5%
OM 1 BS E 31. 0 AS X 11. 0 HL S E 5. 5 HL S E -17. 5 BSE -50. 0%
RTS 1 AS X 22. 1 AIM 6. 0 OT C B B 2. 3 OT C P K -34. 1 O T C NO -50. 6%
K LS E 1 AIM 6. 0 OT C P K 6. 0 OT C NO 2. 3 BSE -41. 4 A IM NA
OT C NO 1 OT C NO 0. 1 OT C NO 0. 1 AIM 0. 0 OT C B B -62. 4 HLS E NA
G rand Total 89 G rand Total 69,234.6 G rand Total 777.9 G rand Total 13,819.5 G rand Total 3,276.1 G rand Total 5.1%
Figure 22. Comparison by Exchange

Source. Capital IQ
Page 17
Financ ing - L as t Three Months (US $ m)

F in. Amount (Million) Type of financ ing
Month C ompany Name C ountry Angel/S eed Debt financ ing S eries A S eries B S eries C S eries D S eries E Grand Total
J ul-09 P andora Media US A 35.0 35. 0
K ontera L td. Is rael 15. 5 15. 5
Ning US A 15. 0 15. 0
QuickP lay Media C anada 12. 0 12. 0
C aus es US A 10. 0 10. 0
Outs park US A 8.3 8.3
C onnectE du US A 8.2 8.2
Acquia, Inc US A 8.0 8.0
S B Nation US A 8. 0 8.0
MediaMath US A 6. 6 6.6
Metavers um G erma ny 6.3 6.3
iMemories US A 6.2 6.2
Invodo US A 6.0 6.0
J ambool US A 5.0 5.0
Quikr India P vt. L td. India 4. 1 4.1
OPE N S ports network US A 4. 0 4.0
S tyleC as ter US A 4.0 4.0
Nexage US A 4. 0 4.0
TweetDeck UK 3. 2 3.2
B us c a US A 2.6 2.6
Akademos US A 2. 5 2.5
P rotonMedia US A 2.5 2.5
iL oop Mobile US A 2. 0 2.0
C omunitae S pain 1. 7 1.7
Aloqa G erma ny 1. 5 1.5
L at49 C anada 1.5 1.5
Thread US A 1. 2 1.2
Tributes .c om US A 1.2 1.2
C oTweet US A 1.1 1.1
C ellufun US A 1.0 1.0
C likthrough US A 1.0 1.0
C ognitive Matc h L imited UK 1.0 1.0
B ookF res h US A 0. 5 0.5
P eople C apital US A 0.5 0.5
Mas her Media US A 0. 3 0.3
J ul-09 Total 65.0 11.1 36.8 51.5 27.0 191.4
Aug-09 Turbine US A 50. 0 50. 0

S mith & Tinker US A 29.0 29. 0
Mint US A 14.1 14. 1
Zoove US A 13. 2 13. 2
R ichR elevance US A 12.5 12. 5
Traffiq US A 10.0 10. 0
MediaMath US A 10. 0 10. 0
B ill.c om US A 8.5 8.5
E do Interactive US A 8. 5 8.5
InnoC entive US A 7.3 7.3
OneR iot US A 7.0 7.0
B alihoo US A 7.0 7.0
B oxee US A 6.0 6.0
P olyvore US A 5.6 5.6
Fanbas e US A 5.0 5.0
MOG US A 5.0 5.0
OurS tage US A 3.0 3.0
Z2L ive US A 3.0 3.0
K ODA US A 3. 0 3.0
S coreloop G erma ny 2.8 2.8
R oblox US A 2. 2 2.2
Tremor Media US A 2.0 2.0
iS ocket US A 2.0 2.0
R ights Flow US A 1.5 1.5
P lis ta G erma ny 1.4 1.4
C hes s C ube S outh Africa 1. 3 1.3
L inks ify US A 0. 5 0.5
iS yndica US A 0. 4 0.4
Aug-09 Total 25.8 11.5 77.6 43.6 63.2 221.6
S ep-09 Twitter US A 100.0 100. 0

E ns equenc e US A 20. 0 20. 0
L ivebookings UK 16.0 16. 0
Mzinga US A 10. 0 10. 0
InXpo US A 9.0 9.0
J obvite US A 8.3 8.3
R iot G ames US A 8.0 8.0
NextB io US A 8.0 8.0
Imeem US A 6.0 6.0
Vuc lip US A 6.0 6.0
YuMe US A 5.0 5.0
B ooyah US A 5.0 5.0
NeoE dge US A 4.0 4.0
Allianc e Health Networks US A 3.3 3.3
Unis fair US A 3. 1 3.1
C onduit L abs US A 3.0 3.0
Mocapay US A 3.0 3.0
Fwix US A 2.8 2.8
Vantrix C anada 2.6 2.6
Mas hL ogic US A 2.5 2.5
G reys tripe US A 2.0 2.0
L oomia US A 1. 5 1.5
FourS quare US A 1.4 1.4
E duFire US A 1.3 1.3
Trans Gaming Inc. C anada 0. 5 0.5
OnL ive US A
S ep-09 Total 2.0 16.9 52.3 27.9 23.1 110.0 232.2
G rand Total 90.8 2.0 39.5 166.6 123.0 113.3 110.0 645.2
Page 18
Figure 23. Financing, Last Three Months

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

C ompany HQ Webs ite Des cription
B ooyah United S ta tes www. booyahnetworks . com B ooyah Networks , Inc. s pecializ es in s earch engine marketing s ervices , s uch as P P C , P aid Inclus ion, and S E O. It als o, through
S potX change divis ion, provides online video advertis ing platform that allows advertis ers and publis hers to buy and s ell online video
a dvertis ing in rea l-time auction mark etplace. T he company wa s formerly known as B ulls eye9, Inc. and changed its name to B ooyah
Networks , Inc. in November 2003. T he company was founded in 2001 a nd is hea dquartered in W es tmins ter, C olorado with an additional
office in New Y ork C ity, New Y ork.
Dopplr F inland www. dopplr. com Dopplr, Ltd. provides an online s ervice for frequent travelers . It offers beta, an online s ervice tha t enables s haring future tra vel plans with a
group of fellow tra velers us ing a pers onal computer and mobile phone. T he company is bas ed in Hels inki, F inland. As of S eptember 28,
2009, Dopplr Ltd. operates as a s ubs idia ry of Nokia C orp.
E duF ire United S ta tes www. edufire. com E duca tion R evolution, Inc. operates as an online community that provides online live video tutoring s ervices . It offers tutoring s ervices for
s tudents covering various langua ges and preparing s tudents for exams on video chat s es s ions . T he company was founded in 2007 and is
bas ed in S anta Monica , C alifornia.
E ns equence United S ta tes www. ens equence. com E ns equence, Inc. offers interactive televis ion and digital broadcas ting s ervices . T he company’s platform ena bles online download, online
a dvertis ing, and viewer res pons e meas urement s ervices . Additionally, it provides s ys tem implementation and integration, audience
mea s urement, and cus tomer care s ervices . T he compa ny’s clientele include MT v, E S P N, B B C , Dis covery C hannel, J etix, HS N, Dis ney,
F ord, Nike, HP , V is a , R eebok, T oyota, G eico, T ime W arner, C omcas t, and S ky. E ns equence, Inc. was founded in 2000 and is
headqua rtered in P ortland, O regon with a dditional offices in New Y ork, C alifornia, and the United K ingdom.
F ourS quare United S ta tes www. fours quare.com F ours quare S olutions Inc. des igns and develops s oftware for iphones . F ours quare S olutions Inc. is bas ed in New Y ork , New Y ork.
F wix United S ta tes www. fwix. com F wix, Inc. owns a nd opera tes as an online portal which collects articles from different s ources and provides current information about a local
a rea, including photos , videos , events , articles , reviews , and mus ic. T he company was founded in 2008 and is bas ed in Menlo P ark,
G amelab United S ta tes www. gamelab. com G alifornia.
C amelab, LL C , a game development company, produces games . It s pecializes in s ingle player and multiplayer online games . T he company
a ls o offers downloadable games , W eb ga mes , board games , ca rd games , conference games , and non-digital games . In addition, it provides
cons ulting s ervices . T he company was founded in 2000 and is bas ed in New Y ork, New Y ork.
G reys tripe United S ta tes www. greys tripe. com G reys tripe, Inc. operates an ad-s upported mobile games and applications dis tribution platform. T he company provides online gaming and in-
game advertis ing s olutions through publis her s ites . Its AdW R AP product s uite ena bles brand advertis ers to communica te their brand
mes s ages to mobile audience; publis hers to s erve ads through their games ; and cons umers to download games , as well as delivers images ,
videos , and s crolling banners to mobile games and applications . T he company’s s olutions a ls o include AdW R AP C ampaign Ma nager, an
a dvertis ing W eb interfa ce; AdW R AP C atalog P rogra m, which enables partners to dis tribute a mobile game cata log; and AdW R AP for
P ublis hers platform . T he company is bas ed in S an F rancis co, C alifornia.
HiveL ive United S ta tes www. hivelive. com HiveLive Inc. provides enterpris e s ocial s oftware platforms . T he company’s on-demand s oftware enables companies to deploy cus tom-fit
enterpris e communities built around people, rela tions hips , and s ha red knowledge. It offers LiveC onnect, provides a building-block approach
for creating cus tom-fit online cus tomer communities ; and Hives , which are W eb 2. 0 building blocks tha t combine people, information, and
permis s ions to create information res ources . HiveLive Inc. was founded in 2006 and is bas ed in B oulder, C olorado.
Imeem United S ta tes www. imeem. com Imeem, Inc. operates as an online community for mus icia ns , directors , photographers , and groups . It enables us ers to create a udio, video,
a nd photo playlis ts ; s hare their fa vorites ; dis cover new content; track their films ; create a nd view playlis ts of their favorite s hots ; track their
photos ; s hare a lbums with their friends ; hold group dis cus s ions ; change their profile info; upload new photo albums ; pos t new videos , or
mus ic; and write blogs , or comments . T he company was founded in 2004 is bas ed in S an F rancis co, C a lifornia .
InXpo United S ta tes www. inxpo. com InX po is the leading provider of priva tely-bra nded virtual events , including V irtua l T rade S hows , V irtual C areer F airs and V irtua l C orporate
E vents , as well a s Audio and V ideo W ebcas ts . T hes e virtual s olutions dramatically reduce tra vel time and related cos ts , in addition to
making the world a greener place to live. InXpo’s V irtual E vents provide P ublis hers with new online revenue opportunities and C orporations
with the ability to generate leads , communicate, educate and network by connecting more effectively with their communities .
J obvite United S ta tes www. jobvite. com J obvite, Inc. offers recruitment application that allows to collaborate on making hires . It s erves HR and s ta ffing executives , recruiters , hiring
managers , executives , employees , and jobs eekers . T he company was founded in 2003 as F orumJ obs a nd changed its name to J obvite, Inc.
in 2006. J obvite, Inc. is bas ed in S an F rancis co, C alifornia.
L ivebookings UK www. livebookings . co. uk L ivebookings , L td. operates a s an online res taurant res ervations and marketing network company in E urope. It offers mark eting and booking
s ervices , as well as promotions for res taurants , booking partners , a nd diners . T he company provides C ons ole, a res taurant res ervations a nd
cus tomer ma nagement s ys tem that allows res taurants to receive Internet bookings ; Loghos , a table mana gement s oftware; and res taurant
management and mana ged s olutions . Livebookings , Ltd. ha s a s trategic partners hip with R es topolita n. T he company was founded in 2001
a nd is bas ed in London, the United K ingdom with additional offices in Hamburg, Zürich, and Madrid. As of 2006, Livebookings , Ltd. is a
s ubs idiary of Livebookings Holdings Limited.
L oomia United S ta tes www. loomia. com L oomia, Inc. provides content recommendation products for the W eb s ite publis hers . It offers content dis covery and video dis covery engines ,
which evaluate and gather contextual data, vis itor behavior, and s ocial information a s s ociated to create recommenda tions that are releva nt to
the us ers . T he company was founded in 2004 and is bas ed in S an F rancis co, C alifornia.
Mas hL ogic United S ta tes www. ma s hlogic. com Mas hLogic Inc. offers mas hes to pers ona lize the applications for the us ers and bloggers . It adds relevant links to W ebs ites , pers onaliz es
W eb pages , increas es vis ibility and reach of content and bra nd, and enriches W eb with links to s ources . T he company was founded in 2007
a nd is bas ed in Menlo P ark, C a lifornia .
Mint.com United S ta tes www. mint. com Mint S oftware, Inc. provides a W eb-bas ed s olution for online fina ncial mana gement. It offers money mana gement, debt management,
expens e tracking, inves tment ma nagement, budget management, mutual fund, IR A management, a nd financial pla nning s ervices . T he
company als o provides s ugges tions bas ed on us er’s s pending patterns and a utomatic categorization of purcha s es . Mint S oftware, Inc. was
founded in 2006 and is bas ed in Mountain V iew, C a lifornia .
Mocapay United S ta tes www. mocapay. com Mocapa y, Inc. provides a mobile commerce pla tform tha t s upports integrated mobile payments , marketing, and dis tribution at point-of-s ale. It
offers a ma rketing engine, which enables mes s aging cons umers before, during, a nd after a retail s tore trans action. T he company was
formerly known a s F E E D and changed its name to Mocapay, Inc. in 2007. Mocapa y, Inc. was founded in 2006 and is bas ed in B oulder,
United S ta tes www. mz inga .com C olorado.Inc. provides online bus ines s s ocial media and workforce s olutions that enable bus ines s es to harnes s the collective intelligence of
Mzinga,
Mzinga
employees , cus tomers , partners , a nd s hareholders . It offers hos ted and s oftware-as -a-s ervice s olutions for informa l communication,
k nowledge s haring, employee tra ining a nd development, and community members ’ interaction. T he company als o provides O mniS ocial, a
s oftware s olution that enables organizations to connect, communicate, collaborate, a nd attain bus ines s value from s ocial intera ctions with
their employees , cus tomers , and partners us ing a s ingle environment. Its bus ines s s ocial media and learning s olutions enable marketing and
cus tomer s ervice profes s ionals to engage and interact with pros pects and cus tomers ; and workforce communities and lea rning s olutions
empower human res ources and corporate lea rning profes s ionals to enhance enterpris e-wide communication and collaboration. T he
company s erves its clients in broadcas t media, e-commerce and e-C R M, education, enterta inment, financial s ervices , general indus try,
health care, manufacturing, print media, online media, s ports and gaming, a nd technology s ectors , as well as profes s ional as s ociations and pr
NextB io United S ta tes www. nextbio. com NextB io, Inc. provides s oftware a s a s ervice bas ed s earch s olutions to life s cience res earchers . It offers NextB io B as ic, a W eb application
tha t provides acces s to a databas e of public data; NextB io P rofes s ional that allows the individual res earcher or groups of res earchers to
exploit publicly available and internally generated experimental data; and NextB io E nterpris e tha t provides colla boration a cros s therapeutic
groups and geographic boundaries . T he compa ny als o provides NextB io P latform that provides ontology-bas ed s emantic framework that
connects heterogeneous data and textual information, a s well as data analys is and curation, training, and s upport s ervices . NextB io, Inc. was
founded in 2004 and is bas ed in C upertino, C alifornia.
NeoE dge Networks United S ta tes www. neoedge. com NeoE dge Networks , Inc. provides advertis ing s olutions for the online cas ual gaming indus try in the United S tates . T he company, through its
NeoAR M technology s uite and NeoAds advertis ing network, provides a d-s upported video gaming. It als o operates Mos tF un. com G a me
Network, a portal for cas ua l games , as well as offers white la bel progra ms for third party s ites . T he company s erves game publis hers ,
portals , and a dvertis ers . NeoE dge Network s , Inc. was formerly known as K initos , Inc. T he company was founded in 2002 and is
headqua rtered in Mountain V iew, C alifornia.
Page 19
C ompany Des c riptions - C urrent Month C apital Market Ac tivity

C ompany HQ Webs ite Des cription
NowPublic C a nada www. nowpublic. com NowP ublic T echnologies , Inc. , a participatory news network, owns and operates NowP ublic. com platform for citizen journalis m. T he
company provides politics , culture, enterta inment, and life photos and video headlines . It s erves Internet us ers , bloggers , a nd photography
enthus ias ts . T he company was founded in 2005 a nd is bas ed in V ancouver, C anada. As of S eptember 2, 2009, NowP ublic T echnologies ,
Inc. operates as a s ubs idiary of T he W as hington E xaminer.
OnLive United S ta tes www. onlive. com O nlive develops s erver-ba s ed video game proces s ing, allowing games to run without game cons uls or high-end computers , moving away
from a s ys tem in which games are purchas ed and downloa ded. T he company is ba s ed in P alo Alto, C alifornia.
R iot G ames United S ta tes www. riotgames . com R iot G ames , Inc. develops and publis hes online video games . It offers online titles for cons oles and the P C s . T he company was founded in
2006 and is bas ed in Los Angeles , C alifornia.
S kype Luxembourg www. s kype. com S kype T echnologies S . A. provides S kype, a s oftware that enables individua ls and bus ines s es to ma ke free video and voice calls , s end
ins tant mes s ages , and s ha re files with other S kype us ers . It als o enables to make calls to landlines and mobiles internationa lly. T he
company als o provides heads ets , W ebca ms , and phones through its online s hop. It s erves us ers in Argentina, B raz il, C hile, C olombia,
Mexico, P eru, and V enez uela. T he company was founded in 2003 and is bas ed in Luxembourg. As of October 14, 2005, S kype T echnologies
S . A. is a s ubs idiary of eB ay Inc.
Tiny P ictures United S ta tes www. tinypictures . us T iny P ictures , Inc. provides a s ervice for s haring of camera phone pictures and videos between friends . It offers R adar, a s ervice that
enables us ers to s hare camera phone pictures and videos with friends . T he company was founded in 2005 a nd is bas ed in S an F rancis co,
C alifornia. As of S eptember 10, 2009, T iny P ictures , Inc. operates as a s ubs idia ry of S hutterfly, Inc.
Trans G aming C a nada www. tra ns gaming.com T rans G aming Inc. engages in the development, s a le, and licens ing of portability technologies for the video games indus try. Its products
include C edega, which a llows windows games to run on the Linux operating s ys tem; C ider that allows windows games to be deployed on the
Intel Macintos h computers ; G ameT reeOnline. com, a digital dis tribution portal, which provides Mac gaming products and s ervices for retail
a nd online game relea s es ; and S wiftS hader, a proprietary s oftwa re 3D rendering product that exploits the move to multi-core central
proces s ing units (C P Us ), and the convergence of C P U and G P U technologies . T he company is further involved in mobile game development
a nd online video game s ales . T he company has a s trategic collaboration with Intel C orporation to s upport its on-demand ga ming s ervice,
G ameT ree. tv. T rans G aming Inc. was founded in 2000 and is headquartered in T oronto, C a nada.
Twitter United S ta tes www. twitter. com T witter, Inc. offers text mes s a ges and phone alerts through T witter. com to its us ers . T he company was founded in 2006 and is ba s ed in S an
F rancis co, C alifornia. T witter, Inc. is a former s ubs idiary of Obvious C orp.
Unis fair United S ta tes Unis fa ir, Inc. hos ts virtual events , trade s hows , conferences , and environments for bus ines s es and enterpris es in the United S tates and
internationally. T he company’s virtual events and bus ines s environments are us ed for marketing, recruiting, colla boration, and training
purpos es . It s erves corporations , media a nd publis hing companies , event orga nizers , and health care organizations . T he company was
founded in 2000 and is bas ed in Menlo P a rk, C alifornia with a dditional offices in New Y ork and Is rael.
Vuclip United S ta tes www. vuclip. com X inLab, Inc., doing bus ines s as V uC lip, operates as a mobile video s earch s ite. It provides mobile video s earch and delivery s olution tha t
a llows its cus tomers to acces s various videos on the Internet and watch it on the video-enabled phone. T he company’s s olutions als o enable
online publis hers and content owners to mobilize their video content through its V uclip V ideo AP I P rogram. In a ddition, it offers mobile video
s treaming with a rich multimedia experience in various wireles s networks and hands ets . T he company was founded in 2000 and is bas ed in
Milpitas , C alifornia with additional offices in B eijing, C hina; and Delhi, India.
Yext United S ta tes www. yext. com Y ext, Inc. provides online directories . It focus es on repres enting va rious bus ines s es acros s the United S tates . T he company wa s founded in
2006 and is bas ed in New Y ork, New Y ork .
YuMe United S ta tes www. yumenetwork s . com Y uMe, Inc. operates a s a video advertis ing network on W eb. It offers ad mana gement s ys tem tha t enables a dvertis ers and publis hers to
identify, clas s ify, and track content through digital media platforms , s uch a s W eb, downloads , mobile, a nd IP T V . T he company als o enables
publis hers to organize video on their s ite into content channels , s uch as automotive, financial s ervices , lifes tyle, news , mus ic, s ports ,
entertainment, and fa mily friendly. In addition, it offers real-time targeting, mea s urement, and optimization; content dis tribution and viral
a dvertis ing opportunities ; a s uite of intera ctive ad placements ; a nd video monetiz ation s ervices . F urther, the company provides a beha viora l
targeting s ys tem that enables advertis ers to target their mes s ages to viewers on a nationa l s cale bas ed on video viewing interes ts a nd
purchas e intent. Y uMe, Inc. was founded in 2004 and is headquartered in R edwood C ity, C alifornia.
Figure 24. Company Descriptions

Source. Company reports, Capital IQ, Crunchbase
Page 20
RELEVANT DISCLOSURES APPLICABLE TO: NONE
LIST OF DISCLOSURE TERMS:
1. None applicable.
ANALYST CERTIFICATION
Each analyst of Research Capital Corporation whose name appears in this report hereby certifies that (i) the
recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii)
no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or
recommendations expressed in this research report.
I n f o r ma t i o n a b o u t Re s e a r ch C a p i t a l C o r p o r a t i o n ’ s Ra t i n g S y s t e m, t h e d i s t r i b u t i o n o f o u r r e s e a r ch t o cl i e n t s a n d t h e p e r ce n t a g e o f r e c o m me n d a t i o n s wh i c h a r e i n e a c h
o f o u r r a t i n g c a t e g o r i e s i s a v a i l a b l e o n o u r we b si t e a t ww w. r e s e a r ch c a p i t a l . c o m.
T h e i n f o r ma t i o n c o n t a i n e d i n t h i s r e p o r t h a s b e e n d r a wn f r o m s o u r c e s b e l i e ve d t o b e r e l i a b l e b u t i t s a c cu r a c y o r co mp l e t e n e ss i s n o t g u a r a n t e e d , n o r i n p r o vi d i n g i t
d o e s R e s e a r c h Ca p i t a l C o r p o r a t i o n a s s u me a n y r e sp o n si b i l i t y o r l i a b i l i t y . R e s e a r ch C a p i t a l C o r p o r a t i o n , i t s d i r e ct o r s , o f f i c e r s a n d o t h e r e mp l o y e e s ma y , f r o m t i me t o
t i me , h a v e p o si t i o n s i n t h e s e cu r i t i e s me n t i o n e d h e r e i n . Co n t e n t s o f t h i s r e p o r t c a n n o t b e r e p r o d u c e d i n wh o l e o r i n p a r t wi t h o u t t h e e xp r e ss e d p e r mi s si o n o f R e se a r ch
C a p i t a l C o r p o r a t i o n . ( U . S . I n s t i t u t i o n a l Cl i e n t s — Re s e a r ch C a p i t a l U . S. A . I n c. ( a wh o l l y o wn e d s u b si d i a r y o f R e s e a r c h C a p i t a l Co r p o r a t i o n ) a cc e p t s r e s p o n si b i l i t y f o r
t h e c o n t e n t s o f t h i s r e p o r t s u b je c t t o t h e t e r ms & l i mi t a t i o n s s e t o u t a b o v e . F i r ms o r i n s t i t u t i o n s r e ce i vi n g t h i s r e p o r t s h o u l d e f f e ct t r a n s a ct i o n s i n s e c u r i t i e s d i sc u s se d
i n t h e r e p o r t t h r o u g h R e s e a r ch C a p i t a l U . S . A . I n c. , a B r o k e r - D e a l e r R e g i s t e r e d wi t h t h e U n i t e d S t a t e s S e cu r i t i e s a n d E xc h a n g e C o m mi s si o n ) .
Tor on to 4 16. 8 60. 76 00 M ontr eal 51 4. 39 9. 150 0 V anco u ver 60 4. 66 2. 180 0 C al gar y 40 3. 26 5. 740 0 R egi na 306. 566. 7550
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SOFTWARE & SERVICES 6 OCTOBER 2009

DAVID SHORE, CFA, MBA 416.860.6784

TWITTER FINANCING BRING S VALUE TO $1 BILLION

Value per unique vis itor (UV)

800,000, 000 P laxo

600,000, 000 F riendF eed

THE WEB 2.0 UNIVERSE

Figure 1. Web 2.0 Universe Summary

Financing Activity Last Twelve Months

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

Figure 2. Financings, Last Twelve Months

Source. Company reports

and 24 (at end of note).

Figure 3. Capital Market Activity, Last Three Months

Capital Market Activity by Sector - Last Three Months

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

Web 2.0 Index Price Performance

Figure 5. Web 2.0 Price Performance

1 Week P rice P erformance

Figure 6. 1-Week Price Performance

Figure 7. Key Developments

Figure 8. Market Cap Ranking

T E V/L T M R evenue (x)

N E O WIZ G ames C orporation

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

G ungHo O nline E ntertainment, Inc.

P N I Digital Media Inc.

C hines e G amer Interna tional

N orthgate T echnologies L imited

C hangy ou.com L imited

T ree.C om, Inc.

B ey ond C ommerc e, Inc.

S K C ommunica tions C o., Ltd.

DigitalP os t Intera ctive, Inc.

F luid Mus ic C a nada , Inc.

Dolphin Digital Media, Inc.

Modern T imes G roup Mtg AB

NeuLion Inc orporated

Lingo Media C orporation

S NAP Intera ctive, Inc.

United O nline Inc .

IAC /InterAc tiveC orp.

V alueC lic k Inc .

NetDra gon WebS oft, Inc .

F rogs ter Intera ctiv e P ictures AG

As s ociated Media Holdings Inc .

T encent Holdings Ltd.

O penwave S y s tems Inc .

P erfect World C o., Ltd.

H anbitS oft, Inc .

Y edangO nline C orp.

S ocial Media V enures , Inc .

Acceleriz e New Media , Inc .

K ings oft C o. Ltd.

Wiz z ard S oftware C orporation

Figure 9. TEV/Revenue Ranking

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

0.0 0.0 0.0 0.0

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

NE O WIZ G ames C orporation

G amania Digital E ntertainment C o. , Ltd.

G ungH o O nline E ntertainment, Inc .

P NI Digital Media Inc .

C hines e G amer International