Web 2.

0 Weekly
“Big Acquisitions, Little Financing”
July 8, 2010

David Shore, CFA, MBA 416.860.6784

dshore@mackieresearch.com
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

Copyright © 2000-2010, Mackie Research Capital Corporation, All rights reserved www.mackieresearch.com
 Key Developments (past week)
Deals (M&A, Finance) – Big Acquisitions, Little Financing

Google, acquired ITA Software, search provider for the travel industry for $700 mm.

infoGROUP, provider of business and consumer databases for sales leads, mailing
lists, direct marketing, database marketing, e-mail marketing, and marketing research
solutions, was taken private for $645 mm by CCMP Capital Advisers.

GroupSpaces, a provider of web-based tools for sports clubs, university societies,
organizations, and groups of friends or coworkers, raised $1.3 mm.

Domain based online advertising services provider, OCTANE360, was acquired by
Local.com for $10.9 mm.
Financial Results/Guidance/Partnerships/Product

Points International Ltd. (TSX:PTS) announced that it has formed a partnership with
The Mileage Company. The new partnership means that Airmiles UK members can now
purchase miles for themselves or gift Airmiles to other members.

RealNetworks Inc. (NasdaqGS:RNWK) is once again scaling back its operations and
announced a restructuring of its operations which includes layoffs of 85 employees. The
layoffs include a 25% reduction in its executive ranks and the reorganization seeks to
streamline its technology and media services divisions. The company is now down to
1,365 employees from 1,700, with roughly 65 layoffs coming out of the Seattle office.
2 www.mackieresearch.com
 Public Company Data

3 www.mackieresearch.com
 Aggregate Public Data

Web 2.0 Public Companies Total Median Max Min

# Companies 103 - - -
Market Cap (US$ mm) 74,460.8 67.2 30,629.6 1.2
Revenue (US$ mm) 23,139.7 56.0 3,057.7 0.0
1 Year revenue growth 2.5% 8961.6% -100.0%
EBITDA as % of revenue - 11.3% 63.1% -99.5%
Net cash (US$ mm) 9,273.3 3.3 1,841.1 -670.8
TEV/Revenue - 1.9x 47.4x 0.1x
TEV/EBITDA - 8.5x 45.6x 0.5x
P/E - 15.3x 90.4x 0.0x
Relative to 52 week high -42.9% -4.1% -95.6%

Source: CapitalIQ

4 www.mackieresearch.com
 5
0
5
10
15
20
25
30
Gaming

28
Social Networking

18
Media

10
9
Diversified

5
Mobile

5
Marketing

Source: CapitalIQ
3
Infrastructure

3
SMS/Voice

3
Enterprise

3
Advertising

2
Internet Retail

2
Virtual World
By Sector

2
Dating

2
Music

1
Vertical Communities

1
Search

1
Podcasting

1
Learning

1
Video

1
Collaboration

1
Payment

1
Financial Services
Public Company Distribution

0
5
10
15
20
25
30
35
40
45
50

United States

Canada

China

South Korea

Japan

Taiwan

Hong Kong

Germany

Poland

Australia

United Kingdom
By Country

Italy

Finland

Sweden

India

Russia

Malaysia

Switzerland
www.mackieresearch.com
 Valuation Dashboard – 1 Week
Market Cap EV/Revenue
Flat
12% Flat
1%

Rising Falling
27% 64%
Rising
35%
Falling
61%

EV/EBITDA P/E

Flat Flat
0% 0%

Rising
35%
Rising
44%
Falling
56%
Falling
65%

6 www.mackieresearch.com
 7
Source: CapitalIQ
Multiple (x)

0.0x
0.5x
1.0x
1.5x
2.0x
2.5x
3.0x
3.5x
4.0x
4.5x
5.0x

# companies
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
Median EV/Revenue

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

Median
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

Long-term average
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
average

3/29/2010
4/5/2010
well below LT

4/12/2010
4/19/2010
down slightly, still
Revenue multiples

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
373839404040404042444545464646474850515150545556616161626666666565667070707073727167707271767477767979797978807981838283

www.mackieresearch.com
 8
Source: CapitalIQ
Multiple (x )

# companies
0. 0x
5. 0x
10. 0x
15. 0x
20. 0x
25. 0x
30. 0x
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
Median EV/EBITDA

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

Median
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

Long-term average
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
EV/EBITDA multiples down,
depressed below LT average

5/17/2010
5/24/2010
5/31/2010
6/7/2010
6/14/2010
6/21/2010
6/28/2010
7/5/2010
18 20 21 22 22 21 21 21 23 22 25 22 23 23 25 26 26 25 24 24 25 27 28 29 32 34 34 36 39 37 38 39 38 40 41 38 38 38 42 41 40 42 41 41 42 43 44 44 44 47 49 48 50 51 51 49 50 48 47 49

www.mackieresearch.com
 9
Source: CapitalIQ
Multiple (x )

# companies
0. 0x
5. 0x
10. 0x
15. 0x
20. 0x
25. 0x
30. 0x
35. 0x
5/18/2009
5/25/2009
6/1/2009
Median P/E

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

Median
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

Long-term average
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
and below LT average

4/26/2010
P/E multiples also down

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
7/5/2010
19 19 18 18 19 18 19 18 20 20 20 18 19 19 19 20 21 24 23 23 24 25 27 26 30 31 32 31 33 32 34 36 37 39 39 38 39 39 40 41 38 39 39 40 37 37 35 33 33 32 35 35 36 35 35 37 35 32 34 33

www.mackieresearch.com
 10
-
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0

# Companies 2
Infrastructure

13.4

1
Virtual World

11.9

7
Diversified

9.9

1
Learning

9.4

8
Social Networking

5.3

4
Mobile

5.0

2
Music

4.4

4
Marketing 4.3

1
Vertical Communities
3.7

1
Search
3.6

Gaming

21
3.3

3
SMS/Voice
3.2
Average EV/Revenue – by Sector

1
Podcasting
2.8

1
Collaboration
2.4

3
Advertising
2.2

Media
2.2

Internet Retail
1.9

Enterprise
1.6

Video
1.5

Dating
1.3

Financial Services
0.3

www.mackieresearch.com
 Average EV/EBITDA – by Sector

50.0
45.6
45.0

40.0 38.5

35.0

30.0

25.0

20.0 17.7
15.8
15.0
11.5 11.3 11.2 10.9
10.0 8.9 8.7
6.8

5.0

-
Diversified
Financial Services

Internet Retail
Search

Mobile

Enterprise

Gaming

Social Networking

Media

Collaboration

Marketing
# Companies 1 1 3 2 14 5 6 2 6 1 2

11 www.mackieresearch.com
 Average P/E – by Sector

100.0

90.0 87.8

80.0

70.0

60.0
53.6

50.0

40.0 37.9
33.8

30.0 26.2

18.9
20.0
15.3
12.9 12.5

10.0

-
Internet Retail Enterprise Collaboration Diversified Social Marketing Advertising Gaming Media
Networking

2 3 1 9 18 5 3 28 10
# Companies

12 www.mackieresearch.com
 13
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
NeXplore C orporation

47

Source: CapitalIQ
26
S pectrumDNA, Inc.

25
S oc ialG O P L C

16
T enc ent Holdings Ltd.

15
G eoS entric O yj

13
P aid Inc.

12
Worlds . com Inc.
G ree, Inc.
B ey ond C ommerc e, Inc.

11 11 10
MO K O .mobi Limited
Lingo Media C orporation

9 9
C hines e G amer International
T rans G aming, Inc.
DigitalP os t Interac tiv e, Inc.

8 7 7
F luid Mus ic C anada, Inc.

7
Dena C o. Ltd.
H U G HE S T elematics , Inc .

5 5
Acc eleriz e New Media, Inc .
Mix i, Inc.

5 4
C hangy ou.c om L imited
WebMediaB rands Inc
S K C ommunic ations C o., Ltd.
F rogs ter Interactive P ictures AG

4 4 4 3
T aleo C orp.
Motricity, Inc.
Wiz z ard S oftware C orporation
K ings oft C orporation L imited
is eemedia Inc.
EV/Revenue Ranking

3 3 3 2 2
O pen T ex t C orp.
eP ro Ltd.
Modern T imes G roup Mtg AB
NE O WIZ G ames C orporation
XING AG
S ohu. com Inc.
S core Media Inc.
V elti P lc
S hutterfly , Inc .
UO MO Media, Inc
P NI Digital Media Inc.
G ungHo O nline E ntertainment, Inc.
My riad G roup AG
V alueC lic k , Inc.
P latforma Mediowa P oint G roup S .A.
HanbitS oft, Inc .
Unilava C orporation
Webz en Inc .
NeuLion Incorporated
Y D O nline C orp.
NeXplore has highest
revenue multiple at 47x

2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1

G amania Digital E ntertainment C o. , L td.

S park Network s , Inc.
Hutc his on T elec ommunic ations Hong K ong H oldings L td.
S NAP Interac tiv e, Inc.
Y nk K orea Inc .
O riented Media G roup B erhad
NetDragon WebS oft, Inc.
AQ Interac tiv e, Inc.
Internet G roup S A
O AO R B C Information S y s tems
P oints International Ltd.
T he New Y ork T imes C ompany
T heS treet.c om, Inc.
Northgate T ec hnologies L imited
U nis erv e C ommunications C orp.
DADA S pA
IAC /InterActiveC orp.
U nited O nline, Inc.
C DC C orp.
AO L, Inc .
G igaMedia Ltd.
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

G lu Mobile, Inc.
C yberplex Inc.
T ree.C om, Inc.
Ac toz S oft C o., L td.
O penwav e S y s tems Inc .
G ameO n C o Ltd.
J umbuck E ntertainment Limited
R ealNetwork s Inc.
As k net AG
Y ippy , Inc .
0 0 0 0 0 0 0 0 0 0

Mobile Data C orp.

www.mackieresearch.com
 14
0. 0
5. 0
10. 0
15. 0
20. 0
25. 0
30. 0
35. 0
40. 0
45. 0
50. 0

Source: CapitalIQ
T ree. C om, Inc .

45.6
S K C ommunic ations C o. , Ltd.

38. 5
HanbitS oft, Inc .

37. 0
T enc ent Holdings Ltd.

30.7
Motric ity , Inc .
T aleo C orp.

25.825.8
F rogs ter Interac tive P ic tures AG

22.2
Mix i, Inc .
G ree, Inc .
C hines e G amer International

19. 018. 718. 3

My riad G roup AG

16.9
AQ Interac tive, Inc .
Modern T imes G roup Mtg AB
15.615.5
S hutterfly , Inc .
EV/EBITDA Ranking

Dena C o. Ltd.
T heS treet. c om, Inc .
14. 213. 813. 8

S c ore Media Inc .

Y D O nline C orp.
12.411.8

O penwave S y s tems Inc .

10.4

P latforma Mediowa P oint G roup S .A.

at 45.6x

O pen T ex t C orp.
IAC /InterAc tiveC orp.
9.5 8.7 8.6

G amania Digital E ntertainment C o., Ltd.

DADA S pA
XING AG
Tree.com leads the group

G ungHo O nline E ntertainment, Inc .

P NI Digital Media Inc .
V elti P lc
8. 5 8. 3 8. 1 7.8 7.6 7.6

NE O WIZ G ames C orporation

Unis erve C ommunic ations C orp.
N etDragon WebS oft, Inc .
S park Network s , Inc .
7.5 7. 3 6. 9 6.8

C hangy ou. c om Limited

K ings oft C orporation Limited
V alueC lic k , Inc .
C DC C orp.
6.5 6.2 6.1 5. 9

Hutc his on T elec ommunic ations Hong K ong Holdings Ltd.

T he New Y ork T imes C ompany
S ohu.c om Inc .
5. 4 4.9 4.6

C y berplex Inc .
4.4

United O nline, Inc .

3.5

AO L, Inc .
Ac toz S oft C o., Ltd.
2. 0 1. 9

G ameO n C o Ltd.
1. 0

www.mackieresearch.com
Excluding EV/EBITDA > 100x
 15
Source: CapitalIQ
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
eP ro Ltd.

90.4
S hutterfly , Inc.
87.8
P oints International Ltd.

Mix i, Inc .

58.2 56. 5
P/E Ranking

C DC C orp.

49. 1
T enc ent H oldings Ltd.

41. 0
O pen T ex t C orp.

G ree, Inc .
37. 9 36. 4
NetDragon W ebS oft, Inc .

G amania Digita l E ntertainment C o., Ltd.

Dena C o. Ltd.
31. 4 30.7 29.7

F rogs ter Intera ctive P ictures AG

C hines e G amer Internationa l

25.3 24.7

V elti P lc
23.5

NE O W IZ G ames C orporation

Hutc his on T elec ommunications H ong K ong H oldings Ltd.

P/E at 90.4x

17.6 16.8

C y berplex Inc .
ePro has the highest

V alueC lic k , Inc.

T he New Y ork T imes C ompany

15.3 14.3 14.2

DADA S pA

S ohu.com Inc .

K ings oft C orpora tion L imited

13.0 12.9 11.3

AO L , Inc.

C hangy ou. com L imited

10.4 9.5

G ameO n C o Ltd.
9.3

U nited O nline, Inc .

8.0

Unis erve C ommunic ations C orp.

5.1

J umbuc k E ntertainment Limited

3.3

N etea s e.com Inc .

2.2

G iant Intera ctive G roup, Inc .

2.0

S ha nda Interac tive E ntertainment Ltd.

1.8

P erfec t World C o., Ltd.

1.1

www.mackieresearch.com
 16
Source: CapitalIQ
(U S $m)

# companies
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000

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
Total Market Capitalization

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
Total market cap drops $1.8 bn to $74.5 bn

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
7/5/2010
98 98 98 98 98 98 98 98 97 98 98 98 98 99 99 99 99 99 99 99100100100100100100100100100100100100101102102102102102102102102102102102102102102102102103103103

www.mackieresearch.com
 17
-

# Companies
5,000.0
10,000.0
15,000.0
20,000.0
25,000.0
30,000.0
35,000.0
40,000.0

9
Diversified

Gaming

28
Media

10
Social Networking

18
1
Collaboration

3
Enterprise

5
Marketing

5
Mobile

2
Internet Retail

1
Search
Total Market Cap – by Sector

2
Music

3
SMS/Voice

2
Dating

1
Financial Services

3
Advertising
1
Video
2

Virtual World
$35 bn in market cap

Vertical Communities
1

Payment
Nine Diversified companies totaling

Infrastructure
1

Learning
1

Podcasting
www.mackieresearch.com
 18
0
1,000
2,000
3,000
4,000
5,000
6,000
Tencent Holdings Ltd.
Netease.com Inc.
Dena Co. Ltd.
Gree, Inc.

Source: CapitalIQ
Modern Times Group Mtg AB
IAC/InterActiveCorp.
Shanda Interactive Entertainment Ltd.
AOL, Inc.
Open Text Corp.
Giant Interactive Group, Inc.
Sohu.com Inc.
Changyou.com Limited
The New York Times Company
Perfect World Co., Ltd.
Hutchison Telecommunications Hong Kong Holdings
Taleo Corp.
ValueClick, Inc.
Mixi, Inc.
Chinese Gamer International
NEOWIZ Games Corporation
Shutterfly, Inc.
SK Communications Co., Ltd.
Kingsoft Corporation Limited
United Online, Inc.
RealNetworks Inc.
Motricity, Inc.
Gamania Digital Entertainment Co., Ltd.
GungHo Online Entertainment, Inc.
NetDragon WebSoft, Inc.
Velti Plc
CDC Corp.
Myriad Group AG
XING AG
Market Cap Ranking

Openwave Systems Inc.

Fluid Music Canada, Inc.
OAO RBC Information Systems
GigaMedia Ltd.
The9 Limited
AQ Interactive, Inc.
Webzen Inc.
HUGHES Telematics, Inc.
TheStreet.com, Inc.
Points International Ltd.
HanbitSoft, Inc.
GameOn Co Ltd.
DADA SpA
Actoz Soft Co., Ltd.
Paid Inc.
Frogster Interactive Pictures AG
Tree.Com, Inc.
Spark Networks, Inc.
Score Media Inc.
Yippy, Inc.
YD Online Corp.
Quepasa Corp.
Moggle, Inc
NeuLion Incorporated
Platforma Mediowa Point Group S.A.
PNI Digital Media Inc.
Ngi Group Inc.
Cyberplex Inc.
Gravity Co., Ltd
Accredited Members Holding Corporation
Glu Mobile, Inc.
GeoSentric Oyj
TransGaming, Inc.
dominates group

DigitalTown, Inc.
WebMediaBrands Inc
ePro Ltd.
Multiplied Media Corporation
Socialwise, Inc.
Asknet AG
Tencent’s $30 bn market cap

LookSmart, Ltd.
Ynk Korea Inc.
NeXplore Corporation
YouBlast Global, Inc.
Accelerize New Media, Inc.
VOIS, Inc.
Dolphin Digital Media, Inc.
Lingo Media Corporation
Wizzard Software Corporation
Northgate Technologies Limited
Unilava Corporation
Jumbuck Entertainment Limited
Internet Group SA
iseemedia Inc.
DigitalPost Interactive, Inc.
Kent International Holdings Inc.
MOKO.mobi Limited
SocialGO PLC
SNAP Interactive, Inc.
Kiwibox.Com, Inc.
Beyond Commerce, Inc.
SpectrumDNA, Inc.
IAS Energy, Inc.
Oriented Media Group Berhad
Uniserve Communications Corp.
En2Go International, Inc.
BroadWebAsia Inc.
Worlds.com Inc.
UOMO Media, Inc
www.mackieresearch.com
 Price Performance – 1 Week
• Negative price momentum, with 62% of
stocks falling over the past week. Price Momentum

• Second consecutive week of >60%

companies with falling prices

Rising
26%

Falling
62%
Flat
12%

19 www.mackieresearch.com
 Average Price Performance – 1 Week, by Sector

20.0%

10.0%
Infrastructure sector shows
10.0% highest weekly returns
4.1% 2.6%
1.2% 0.4% 0.0% 0.0%
0.0%
-0.6% -1.6% -1.8%
-10.0% -5.5% -6.7% -6.8% -6.9%
-7.5%
-9.2% -9.3% -9.8%
-11.0%
-13.7%
-20.0%
-19.1%

-30.0%

-40.0% -37.4%

Internet Retail
Infrastructure

Networking

Collaboration

Virtual World
Financial
Payment

Communities
Advertising

Learning

Music
Mobile

Podcasting

Gaming

Dating

Enterprise

Marketing

Diversified

Search
Services
SMS/Voice

Media

Video
Social

Vertical
Source: CapitalIQ

20 www.mackieresearch.com
 21
-100.0%
-80.0%
-60.0%
-40.0%
-20.0%
0.0%
20.0%
40.0%
60.0%
80.0%
WDDD
BWBA
ETGI
IASC.A

Source: CapitalIQ
VOIS
AIM:SGO
TSX:NLN
YIPI
BYOC
TSXV:USS
MKB
CHIN.A
A066270
A052790
3765
3888
PAYD
MOTR
WEBM
OPWV
RBCI
NYT
A095660
TREE
TSE:2432
TLEO
LOV
LOOK
VCLK
UOMO
UNTD
AOL
590057
TSX:FMN
IACI
SFLY
STVI
MTG B
TSXV:PN
RNWK
KNTH
SNDA
SEHK:8086
VEL
TSXV:MMC
QPSA
KOSE:A069
MYRN
TSX:SCR
Price Performance – 1 Week

SOHU
777
SEHK:215
GA
GRVY
TSCM
A047080
HUTC
OTEX
TSE:3632
6180
3812
O1BC
CM:DA
A052770
PWRD
IEE
TSXV:LM
ASX:JMB
KIWB
DB:M0C
UNLA
OMEDIA
MBYL
WZE
TSXV:TNG
LVWD
700
2497
GTSM:3083
SCLW
CYOU
A023770
TSX:CX
GLUU
TSX:PTS
NCTY
XTRA:A5A
WSE:IGR
NTES
FRG
ACLZ
WSE:PGM
NXPC
DGLP
3838
DGTW
GIGM
2121
YBLT
SPXA
DPDM
GEO1V
ACCM
www.mackieresearch.com
 22
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%

0%
500%
1000%
1500%
2000%
2500%
OAO RBC SNAP
Information Interactive, Inc.
Systems

Yippy, Inc.
ePro Ltd.

Source: CapitalIQ
Frogster
Beyond Interactive
Commerce, Inc. Pictures AG

Uniserve
AQ Interactive, Communications
Inc. Corp.

Quepasa Corp.
Cyberplex Inc.

6 Month
1 Month

Uniserve Points
Communications International Ltd.
Corp.

Score Media Inc. HanbitSoft, Inc.

Velti Plc DADA SpA

SNAP
Mixi, Inc.
Interactive, Inc.

Points AQ Interactive,
International Ltd. Inc.
Price Performance (Top 10)

0%
20%
40%
60%
80%
100%
120%
140%

0%
500%
1000%
1500%
2000%
2500%
3000%
3500%
4000%

OAO RBC
Information Yippy, Inc.
Systems

Beyond
Yippy, Inc.
Commerce, Inc.

YouBlast Global,
ePro Ltd.
Inc.

Quepasa
ePro Ltd.
Corp.

AQ
AQ Interactive,
Interactive,
Inc.
Inc.
1 Year
3 Month

SK
Velti Plc Communications
Co., Ltd.

Fluid Music
DigitalTown, Inc.
Canada, Inc.

Points
Dena Co. Ltd.
International Ltd.

TransGaming,
Gree, Inc.
Inc.

Gree, Inc. Glu Mobile, Inc.

www.mackieresearch.com
 23
-80.0%
-70.0%
-60.0%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%

-100.0%
-90.0%
-80.0%
-70.0%
-60.0%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
Uniserve
NeXplore Communications
Corporation Corp.

Beyond
Lingo Media

Source: CapitalIQ
Commerce, Inc.
Corporation

SpectrumDNA, Yippy, Inc.

Inc.

NeuLion
VOIS, Inc. Incorporated

MOKO.mobi SocialGO PLC

Limited
1 Week

6 Month
UOMO Media,
VOIS, Inc.
Inc

Worlds.com
IAS Energy, Inc.
Inc.

Unilava BroadWebAsia
Corporation Inc.

En2Go
En2Go
International,
International, Inc.
Inc.

BroadWebAsia
Worlds.com Inc.
Inc.
-80.0%
-70.0%
-60.0%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
Price Performance (Bottom 10)

-120.0%
-100.0%
-80.0%
-60.0%
-40.0%
-20.0%
0.0%

SocialGO PLC
Moggle, Inc

Mobile Data
Actoz Soft
Corp.
Co., Ltd.

LookSmart,
IAS Energy,
Ltd.
Inc.
Accredited
Members
SpectrumDNA,
Holding
Inc.
Corporation

Worlds.com VOIS, Inc.

Inc.
1 Year
1 Month

Beyond Beyond
Commerce, Commerce,
Inc. Inc.

En2Go
YouBlast International,
Global, Inc. Inc.

UOMO Media, BroadWebAsia

Inc Inc.

En2Go
Unilava
International,
Corporation
Inc.

BroadWebAsia Worlds.com
Inc. Inc.
www.mackieresearch.com
 Capital Market Activity (Financing, M&A)

24 www.mackieresearch.com
 Financing Activity – Current Month
C ompany Name C ountry S ec tor Ac quis ition NA G rand Total
ITA S oftware US A S earch 700. 0 700. 0
infoG R OUP US A Advertis ing 644. 9 644. 9
OC TANE 360 US A Advertis ing 10. 9 10. 9
G roupS pac es UK V ertical C ommunities 1. 3 1. 3
1355.8 1.3 1357.1

25 www.mackieresearch.com
 Financing Activity – Current Month, by Sector
$ Raised # Deals

Vertical
Advertising Other
Communities
1% 0%
0%

Vertical
Communities Search
33% 34%

Search Other
49% 50%

Advertising
33%

26 www.mackieresearch.com
 Financing Activity

After huge June, July starts very slowly

1000.0 16.0

900.0 13.7
14.0

800.0 12.2
12.0
700.0 10.3
9.6 10.0
600.0 8.8
8.4
(US$m)

(US$m)
500.0 7.6 8.0
6.3 6.4
400.0 5.4 5.7 5.5 6.0

300.0
4.0
200.0

1.3 2.0
100.0

0.0 0.0
Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10

*Dec-09 includes $180m Zynga investment

Apr-10 includes $300m DST investment
Total Average per Deal LTM Total Average**
**Excludes Dec-09, Apr-
Jun-10 includes $147m Zynga investment 10

27 www.mackieresearch.com
 28
(US$m)

0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
800.0
900.0

# companies
Advertising

20
5
Search

Gaming

12
6
Media

Analytics

10
5
Internet Retail

3
Collaboration

Mobile

10
5
Virtual World

6
Social Commerce

6
Vertical Communities

6
Social Networks

3
Location-based SNS

4
Video

2
Mobile Ad

2
Comment/Reputation

1
$810 mm)

SMS/Voice

2
Virtual Goods
area of interest in the
Advertising the biggest

3
past 3 months(20 deals,

Enterprise
3

Financial Services
4

Infrastructure
3

Aggregation
1

Widget
1

Music
3

Travel
1

Publishing
1

Microblog
Capital Market Activity Ranking – by Sector, last three months

Online Learning
Crowdsourced
1

Content
www.mackieresearch.com
 29
(US$ mm)

0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
Jan-08

Feb-08

Mar-08
Apr-08

May-08
Jun-08

Jul-08
Aug-08

Sep-08
Oct-08

Nov-08

Dec-08

Social Networks
Jan-09

Feb-09

Gaming
Mar-09
Apr-09
$ Raised

May-09

Advertising
Jun-09

Jul-09

Video
Aug-09

Sep-09

Oct-09
Nov-09

Virtual World
Dec-09
Jan-10

Feb-10

Mar-10
Apr-10

May-10

Jun-10

Jul-10

No deals in top 5 sectors in July

Top 5 Sectors (2008-present)

(# Deals)
0
5
10
15
20
25
30

Jan-08

Feb-08

Mar-08

Apr-08

May-08

Jun-08
Jul-08

Aug-08

Sep-08

Oct-08

Nov-08

Dec-08
Social Networks

Jan-09

Feb-09

Mar-09
Advertising

Apr-09

May-09
Gaming

Jun-09
# Deals

Jul-09

Aug-09

Sep-09
Virtual World

Oct-09

Nov-09
Video

Dec-09

Jan-10

Feb-10

Mar-10

Apr-10

May-10
Top 5 sectors average $170 mm & 15 deals per month (aggregate)

Jun-10

Jul-10
www.mackieresearch.com
 Top 10 Deals (2010 YTD)
Financing Acquisitions

350.0 800

700.0
300.0 700
300.0 644.9

600
250.0
500

200.0
400

147.0
150.0 135.0 300
225.0
187.5
100.0 200 160.0
142.0 126.5
100.0
100 80.0 75.0
50.0 50.0 44.0
50.0 40.0 35.0 33.0 31.0
0

Ankeena Networks
Alloy
ITA Software

Turbine
infoGROUP

Tsavo Media
ICQ

Mochi Media
Jigsaw
Siri
0.0
Technologies

Zynga

LivingSocial

Playdom

HauteLook
Groupon

Gilt Groupe
Glam Media

Tremor Media
Qiyi
Digital Sky

Google acquisition of ITA ranks as biggest acquisition this year

infoGROUP taken private in 2nd largest acquisition this year

30 www.mackieresearch.com
 Upcoming Events/Earnings
Company Date Time Quarter Conf Call Details
Score Media (TSX:SCR) 14-Jul-10 16:00 PM (EST) Q3/10 NA
The New York Times Company (NYSE:NYT) 22-Jul-10 11:00 AM (EST) Q2/10 888-293-6979
IAC/InterActiveCorp. (NasdaqGS:IACI) 28-Jul-10 11:00 AM (EST) Q2/10 NA
Tree.Com, Inc. (NasdaqGM:TREE) 29-Jul-10 11:00 AM (EST) Q2/10 877-874-1588

Source: CapitalIQ

31 www.mackieresearch.com
 Public Company Listing T rading C urre nt US $ Mark e t
C om pany Nam e T ick e r Exchange C ur re ncy HQ Price C ap (m m ) Em ploye e s
A ccelerize New M edia, Inc. ACLZ OTCBB USD United States 1 15.9 10
A ccredited M embers Holding Co rpo ratio n ACCM OTCBB USD United States 1 40.9 8
A cto z So ft Co ., Ltd. A052790 KOSE KRW So uth Ko rea 10,750 78.0 NA
A OL, Inc. AOL NYSE USD United States 20 2,173.9 6,700
A Q Interactive, Inc. 3838 TSE JP Y Japan 173,000 107.2 NA
A sknet AG XTRA :A 5A XTRA EUR Germany 3 20.7 NA
B eyo nd Co mmerce, Inc. BYOC OTCBB USD United States 0 5.0 16
B roadWebA sia Inc. BWB A OTCPK USD United States 0 1.7 46
CDC Co rp. CHIN.A NasdaqGS USD Ho ng Ko ng 2 221.8 NA
Changyo u.co m Limited CYOU NasdaqGS USD China 27 1,401.1 1,308
Chinese Gamer Internatio nal GTSM :3083 GTSM TWD Taiwan 271 722.8 NA
Cyberplex Inc. TSX:CX TSX CA D Canada 1 44.3 NA
DA DA SpA CM :DA CM EUR Italy 4 79.7 597
Dena Co . Ltd. TSE:2432 TSE JP Y Japan 2,371 3,938.6 NA
DigitalPo st Interactive, Inc. DGLP OTCBB USD United States 0 6.6 6
DigitalTown, Inc. DGTW OTCBB USD United States 1 33.0 4
Do lphin Digital M edia, Inc. DP DM OTCBB USD United States 0 13.6 NA
En2Go International, Inc. ETGI OTCBB USD United States 0 2.4 NA
ePro Ltd. SEHK:8086 SEHK HKD Ho ng Ko ng 1 28.9 707
Fluid M usic Canada, Inc. TSX:FM N TSX CA D United States 2 162.1 NA
Fro gster Interactive P ictures A G FRG XTRA EUR Germany 21 68.7 NA
Gamania Digital Entertainment Co ., Ltd. 6180 GTSM TWD Taiwan 52 256.6 NA
GameOn Co Ltd. 3812 TSE JP Y Japan 75,400 83.1 NA
Geo Sentric Oyj GEO1V HLSE EUR Finland 0 33.7 120
Giant Interactive Gro up, Inc. GA NYSE USD China 7 1,565.3 1,575
GigaM edia Ltd. GIGM NasdaqGS USD Taiwan 2 128.4 NA
Glu M o bile, Inc. GLUU NasdaqGM USD United States 1 39.8 479
Gravity Co ., Ltd GRVY NasdaqGM USD So uth Ko rea 2 41.7 455
Gree, Inc. TSE:3632 TSE JP Y Japan 7,350 3,787.7 NA
GungHo Online Entertainment, Inc. 3765 OSE JP Y Japan 187,200 244.7 NA
HanbitSo ft, Inc. A047080 KOSE KRW So uth Ko rea 4,765 85.4 NA
HUGHES Telematics, Inc. HUTC OTCBB USD United States 3 91.0 276
Hutchison Teleco mmunicatio ns Ho ng Kong SEHK:21
Ho ldings
5 Ltd. SEHK HKD Ho ng Ko ng 2 1,007.2 1,732
IA C/InterActiveCo rp. IA CI NasdaqGS USD United States 22 2,392.9 3,200
IA S Energy, Inc. IA SC.A OTCPK USD Canada 0 3.7 NA
Internet Gro up SA WSE:IGR WSE P LN P o land 1 7.7 NA
iseemedia Inc. IEE TSXV CA D Canada 0 7.1 NA

32 www.mackieresearch.com
 Public Company Listing cont.
T rading C urr e nt US $ Mark e t
C om pany Nam e T ick e r Exc hange C ur re nc y HQ Price C ap (m m ) Em ploye e s
Jumbuck Entertainment Limited A SX:JM B A SX A UD A ustralia 0 7.8 79
Kent Internatio nal Ho ldings Inc. KNTH OTCP K USD United States 2 6.6 NA
Kingso ft Co rpo ratio n Limited 3888 SEHK HKD China 4 512.3 2,735
Kiwibo x.Co m, Inc. KIWB OTCB B USD United States 0 5.0 6
Lingo M edia Co rpo ratio n TSXV:LM TSXV CA D Canada 0 13.6 NA
LiveWo rld Inc. LVWD OTCP K USD United States 0 1.2 NA
Lo o kSmart, Ltd. LOOK NasdaqGM USD United States 1 20.1 65
M ixi, Inc. 2121 TSE JP Y Japan 476,000 838.5 NA
M o bile Data Co rp. M B YL OTCB B USD United States 0 1.2 NA
M o dern Times Gro up M tg A B M TG B OM SEK Sweden 418 3,576.8 2,936
M o ggle, Inc DB :M 0C DB EUR United States 1 49.7 2
M OKO.mo bi Limited M KB A SX A UD A ustralia 0 6.0 NA
M o tricity, Inc. M OTR NasdaqGM USD United States 8 319.5 355
M ultiplied M edia Co rpo ratio n TSXV:M M C TSXV CA D Canada 0 27.0 NA
M yriad Gro up A G M YRN SWX CHF Switzerland 4 195.7 778
NEOWIZ Games Co rpo ratio n A 095660 KOSE KRW So uth Ko rea 37,800 651.9 NA
NetDrago n WebSo ft, Inc. 777 SEHK HKD China 4 239.7 2,901
Netease.co m Inc. NTES NasdaqGS USD China 32 4,214.7 NA
NeuLio n Inco rpo rated TSX:NLN TSX CA D Canada 0 48.8 224
NeXplo re Co rpo ratio n NXP C OTCP K USD United States 0 17.8 NA
Ngi Gro up Inc. 2497 TSE JP Y Japan 32,350 45.7 NA
No rthgate Techno lo gies Limited 590057 B SE INR India 17 12.4 NA
OA O RB C Info rmatio n Systems RB CI M ICEX RUB Russia 34 145.2 2,523
Open Text Co rp. OTEX NasdaqGS USD Canada 37 2,120.7 3,700
Openwave Systems Inc. OP WV NasdaqGS USD United States 2 162.7 590
Oriented M edia Gro up B erhad OM EDIA KLSE M YR M alaysia 0 3.3 NA
P aid Inc. P A YD OTCB B USD United States 0 71.9 20
P erfect Wo rld Co ., Ltd. P WRD NasdaqGS USD China 22 1,115.9 2,896
P latfo rma M edio wa P o int Gro up S.A . WSE:P GM WSE P LN P o land 1 46.5 NA
P NI Digital M edia Inc. TSXV:P N TSXV CA D Canada 1 46.3 NA
P o ints Internatio nal Ltd. TSX:P TS TSX CA D Canada 1 88.5 93
Quepasa Co rp. QP SA OTCB B USD United States 4 51.1 71
RealNetwo rks Inc. RNWK NasdaqGS USD United States 3 445.0 1,754
Sco re M edia Inc. TSX:SCR TSX CA D Canada 1 64.0 230
Shanda Interactive Entertainment Ltd. SNDA NasdaqGS USD China 38 2,251.6 5,721
Shutterfly, Inc. SFLY NasdaqGS USD United States 24 640.2 519
33 www.mackieresearch.com
 Public Company Listing cont.
Trading C urrent US $ Market
C ompany Name Tic ker E xc hange C urrency HQ P rice C ap (mm) E mployees
S K C ommunications C o., L td. A066270 K OS E KRW S outh K orea 17, 950 604.8 519
S NAP Interactive, Inc. STVI OT C B B US D United S tates 0 5. 6 NA
S ocialG O P L C AIM: S G O AIM GBP United K ingdom 0 5. 6 15
S ocialwis e, Inc. S C LW OT C B B US D United S tates 1 25. 0 9
S ohu. com Inc. S O HU Nas daqG S US D C hina 41 1, 538.4 NA
S park Network s , Inc. LOV AME X US D United S tates 3 66. 9 3,997
S pectrumDNA, Inc. S P XA OT C B B US D United S tates 0 4. 8 155
T aleo C orp. T LE O Nas daqG M US D United S tates 24 943.9 8
T encent Holdings L td. 700 S E HK HK D C hina 130 30, 629. 6 916
T he New Y ork T imes C ompany NY T NY S E US D United S tates 9 1, 237.6 7,845
T he9 L imited NC T Y Nas daqG S US D C hina 4 108.7 7,665
T heS treet.com, Inc. TS CM Nas daqG M US D United S tates 3 90. 2 1,010
T ra ns G aming, Inc. T S XV : T NG T S XV C AD C anada 1 33. 5 274
T ree.C om, Inc. TR E E Nas daqG M US D United S tates 6 67. 5 28
Unila va C orporation UNL A OT C B B US D United S tates 0 8. 0 700
Unis erve C ommunications C orp. T S XV : US S T S XV C AD C anada 0 3. 0 40
United O nline, Inc. UNT D Nas daqG S US D United S tates 6 486.2 NA
UO MO Media, Inc UO MO OT C B B US D C anada 0 1. 3 1,699
V alueC lick , Inc. V C LK Nas daqG S US D United S tates 11 862.9 NA
V elti P lc VEL AIM GBP United K ingdom 4 231.7 1,086
V O IS , Inc. V O IS OT C B B US D United S tates 0 14. 2 459
W ebMedia B rands Inc WEBM Nas daqG S US D United S tates 1 31. 4 2
W ebzen Inc. K O S E :A069080 K OS E KRW S outh K orea 10, 650 103.2 83
W izzard S oftware C orporation W ZE AME X US D United S tates 0 13. 2 326
W orlds . com Inc. W DDD OT C B B US D United S tates 0 1. 4 80
XING AG O 1B C XT R A E UR G erma ny 28 180.6 1
Y D O nline C orp. A052770 K OS E KRW S outh K orea 4, 460 54. 7 293
Y ippy, Inc. Y IP I OT C B B US D United S tates 3 63. 6 NA
Y nk K orea Inc. A023770 K OS E KRW S outh K orea 2, 945 19. 2 NA
Y ouB las t G lobal, Inc. Y B LT OT C B B US D United S tates 0 16. 2 NA

34 www.mackieresearch.com
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1. None applicable.
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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.
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35 www.mackieresearch.com