SOFTWARE & SERVICES 8 DECEMBER 2009

DAVID SHORE, CFA, MBA 416.860.6784

WEB 2.O WEEKLY david.shore@researchcapital.com
Damian Wojcichowsky, CFA (Associate), 416.860.7652

LATTER HALF OF 2009: FORGING FORWARD

D EAL VAL U E ON PA C E T O M E ET N OV E MB E R L E V EL
December starts at strong pace: Total transaction value in the W eb 2.0 universe for the first week of December is
$68.8 million. The number of financings stands at seven, averaging $9.8 million each. In comparison, total capital
raised in November was $203.4 million, averaging $11.3 million (18 deals); October was $171.3 million, averaging
$6.3 million (27 deals); and September was $232.8 million, averaging $9.0 million (26 deals).

Financing Activity Last Twelve Months

400.0 16.0

14.6

350.0 14.0

300.0 12.0
11.3

9.8
250.0 10.0
9.0
(US$m)

(US$m)
200.0 7.6 8.0
7.1
6.7 6.6
6.5 6.3
6.2
150.0 5.6 6.0
4.9

100.0 4.0

50.0 2.0

0.0 0.0
Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09

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

Broad-based sector financing: Video, Gaming, Advertising, Collaboration, and Analytics experienced the most
financing activity among our W eb 2.0 sector categories in the past three months by number of transactions (six each).
Social Networks remain strong with five deals in the past quarter. Infrastructure and Search round out the top three
positions at four deals each over the past three months. The $400 million acquisition of Playfish skews the Virtual
W orlds segment to the highest total.

Market pull-back abates – universe split between risers and decliners: Twenty-five companies in our universe
had positive stock price performances over the past week (for stocks with prices greater than $1), while 22 companies
showed negative 1-week returns.

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

Eighty-nine public Web 2.0 companies: Our W eb 2.0 universe contains 89 companies, with a combined market cap of
approximately $71 billion (Figure 1). The median market cap for the group is $41 million, with average trailing revenue of
$164 million (median $52 million). The companies are also generally profitable with a median EBITDA margin of 11.1%.
On a valuation basis, the overall average is 5.3x trailing revenue (median 1.6x) and 11.0x trailing EBITDA (median 7.8x).
Twenty of the companies have more than 500 employees.
C omparable C ompany Analys is > Web 2.0
Trading C urrent US D Market US D L TM Total US D L TM Total E B ITDA TE V/L TM TE V/L TM
C ompany Name L TM as of Ticker E xc hange C urrency HQ P rice C ap ($m) R ev ($m) E B ITDA ($m) % R evenue E B ITDA E mployees
Accelerize New Media , Inc. 9/30/2009 AC LZ OT C B B US D United S ta tes 0. 55 15. 8 4. 1 (1.5) -36. 5% 5. 0x - 11
Actoz S oft C o. , Ltd. 9/30/2009 A052790 K OS E KR W S outh K orea 20,800 151. 1 115.9 25. 7 22. 2% 1. 0x 4. 3x NA
AQ Interactive, Inc. 9/30/2009 3838 TS E JPY J a pan 40,550 24. 7 74. 0 3.8 5.1% 0. 0x 0. 5x NA
As knet AG 9/30/2009 X T R A:A5A XT R A E UR G ermany 4 26. 5 103.6 (2.4) NM - - 3
As s ociated Media Holdings Inc. 6/30/2007 AS MH OT C P K US D United S ta tes 0. 76 32. 9 0. 1 (2.3) NM - - 3
B igs tring C orp. 9/30/2009 BS GC OT C B B US D United S ta tes 0. 03 1.8 0. 1 (1.0) NM 44.4x - 4
B eta wave C orporation 9/30/2009 B W AV OT C B B US D United S ta tes 0. 09 2.5 8. 4 (14. 3) NM - - 48
B eyond C ommerce, Inc. 9/30/2009 B Y OC OT C B B US D United S ta tes 0. 05 2.7 13. 5 (12. 4) -91. 9% 1. 1x - 86
B right T hings plc 3/31/2009 AIM: B G T AIM GBP United K ingdom 0. 01 5.3 0. 0 (2.7) NM - - NA
B roa dW ebAs ia Inc. 9/30/2008 BWBA OT C P K US D United S ta tes 0. 05 4.2 0. 0 (4.6) NM - - 46
C DC C orp. 9/30/2009 C HIN. A Na s daqG S US D Hong K ong 2. 43 257. 5 334.2 20. 0 6.0% 0. 7x 11. 3x 2, 227
C hangyou. com L imited 9/30/2009 C Y OU Na s daqG S US D C hina 30. 99 1,704. 5 255.3 157.4 61. 7% 5. 5x 8. 8x 628
C hina G a teway C orporation 9/30/2008 CGWY OT C P K US D United S ta tes 0. 01 0.2 6. 7 (6.6) -98. 9% 0. 0x - 37
C hines e G amer Interna tiona l 9/30/2009 G T S M: 3083 GTS M TWD T aiwa n 426 1,103. 5 68. 3 39. 6 58. 0% 15.0x 25. 8x NA
C LIC K E R Inc. 5/31/2009 C LK Z OT C B B US D United S ta tes 0. 01 0.5 2. 5 (1.2) -45. 8% 0. 2x - 22
C ornerW orld C orpora tion 7/31/2009 CWR L OT C B B US D United S ta tes 0. 03 2.9 6. 8 NM NM 1. 9x - 16
C yberplex Inc. 9/30/2009 T S X :C X TS X C AD C anada 1 74. 1 105.6 11. 7 11. 1% 0. 5x 4. 6x NA
DADA S pA 6/30/2009 C M: DA CM E UR Italy 6. 28 149. 0 241.9 31. 8 13. 1% 0. 8x 6. 2x NA
DXN Holdings B hd 8/31/2009 DX N K LS E MY R Ma la ys ia 0. 57 36. 9 77. 3 (84. 0) NM 0. 6x - NA
Dibz International, Inc. NA DIB Z OT C P K US D United S ta tes 0. 00 0.0 NA NM NM - - NA
DigitalP os t Interactive, Inc. 9/30/2009 DG LP OT C B B US D United S ta tes 0. 05 4.6 1. 2 (0.9) -73. 8% 5. 7x - 7
DigitalT own, Inc. 8/31/2009 DG T W OT C B B US D United S ta tes 1. 40 38. 3 0. 0 (1.8) NM - - 3
Dolphin Digital Media , Inc. 9/30/2009 DP DM OT C B B US D United S ta tes 0. 27 15. 4 0. 3 (4.6) NM - - NA
E olith C o. Ltd. 12/31/2008 A041060 K OS E KR W S outh K orea 540 66. 8 15. 4 (3.6) -23. 6% 4. 5x - NA
E xtens ions , Inc. 9/30/2009 E XT I OT C P K US D United S ta tes 0. 30 13. 3 0. 0 NM NM - - 2
F luid Mus ic C a nada , Inc. 9/30/2009 T S X :F MN TS X C AD United S ta tes 1. 80 104. 4 5. 6 (3.0) -54. 0% 18.2x - NA
F rogs ter Interactive P ictures AG 6/30/2009 FRG XT R A E UR G ermany 18. 75 70. 4 9. 6 (4.5) -47. 0% 7. 2x - NA
G ama nia Digita l E ntertainment C o., Ltd. 9/30/2009 6180 GTS M TWD T aiwa n 47. 10 222. 9 151.2 24. 9 16. 5% 1. 3x 8. 0x NA
G ameOn C o Ltd. 9/30/2009 3812 TS E JPY J a pan 65,500 70. 8 79. 3 18. 6 23. 5% - - NA
G eoS entric O yj 9/30/2009 G E O 1V HL S E E UR F inland 0. 05 65. 8 4. 7 (19. 0) NM 14.8x - 118
G iant Interactive G roup, Inc. 9/30/2009 GA NY S E US D C hina 7 1,628. 3 202.2 137.9 68. 2% - - 1, 570
G iga Media Ltd. 3/31/2009 G IG M Na s daqG S US D T aiwa n 3. 86 210. 4 183.6 NM NM 0. 7x - 751
G ravity C o., Ltd 9/30/2009 GR VY Na s daqG M US D S outh K orea 1. 46 40. 6 49. 9 17. 7 35. 4% - - 469
G ree, Inc. 9/30/2009 T S E : 3632 TS E JPY J a pan 4,440 2,222. 9 210.3 122.2 58. 1% 10.1x 17. 4x NA
G ungHo O nline E ntertainment, Inc. 9/30/2009 3765 OS E JPY J a pan 154,000 197. 3 120.7 26. 9 22. 3% 1. 3x 5. 9x NA
HanbitS oft, Inc. 9/30/2009 A047080 K OS E KR W S outh K orea 3,900 71. 6 57. 6 (0.3) -0.6% 1. 0x - NA
IAC /InterActiveC orp. 9/30/2009 IAC I Na s daqG S US D United S ta tes 19. 00 2,507. 4 1, 359. 6 82. 4 6.1% 0. 6x 10. 5x 3, 200
IAS E nergy, Inc. 4/30/2009 IAS A. E OT C B B US D C anada 0. 11 7.8 0. 0 (0.6) NM - - NA
is eemedia Inc. 9/30/2009 IE E T S XV C AD C anada 0. 19 9.2 1. 8 (4.1) NM 5. 3x - NA
J umbuck E nterta inment Limited 6/30/2009 AS X :J MB AS X AUD Aus tralia 0. 32 13. 6 16. 7 7.2 42. 8% 0. 4x 1. 0x 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. 9/30/2009 3888 S E HK HK D C hina 6 796. 9 143.4 57. 6 40. 2% 5. 1x 12. 8x 2, 271
Lingo Media C orporation 9/30/2009 T S X V :LM T S XV C AD C anada 0. 96 11. 0 1. 3 (2.3) NM 8. 1x - NA
LiveW orld Inc. 9/30/2009 LVW D OT C P K US D United S ta tes 0. 03 1.0 10. 4 0.4 4.1% - - NA
LookS mart, Ltd. 9/30/2009 L OO K Na s daqG M US D United S ta tes 1. 07 18. 3 54. 0 (4.5) -8.4% - - 90
Magnitude Information S ys tems Inc. 9/30/2009 MAG Y OT C B B US D United S ta tes 0. 02 10. 2 0. 1 (2.3) NM - - 14
Mixi, Inc. 9/30/2009 2121 TS E JPY J a pan 784000. 00 1,351. 0 139.6 46. 1 33. 0% 8. 7x 26. 4x NA
Modern T imes G roup Mtg AB 9/30/2009 MT G B OM SEK S weden 329. 60 3,119. 2 2, 002. 6 282.9 14. 1% 1. 8x 12. 9x 2, 969
MO K O .mobi Limited 6/30/2009 MK B AS X AUD Aus tralia 0. 14 12. 5 0. 7 (2.4) NM 16.6x - NA
Myriad G roup AG 6/30/2009 MY R N SWX C HF S witzerland 4. 84 207. 5 63. 0 3.4 5.4% 3. 2x - 405
NE O W IZ G ames C orpora tion 12/31/2008 A095660 K OS E KR W S outh K orea 44200. 00 780. 8 207.3 55. 7 26. 8% 3. 7x 13. 8x NA
NetDragon W ebS oft, Inc. 9/30/2009 777 S E HK HK D C hina 4 295. 3 91. 4 27. 8 30. 4% 1. 6x 5. 2x 2, 426
Neteas e. com Inc. 9/30/2009 NT E S Na s daqG S US D C hina 37. 23 4,818. 6 482.9 291.8 60. 4% - - 3, 109
NeuLion Incorporated 9/30/2009 T S X :NLN TS X C AD C anada 0. 70 74. 9 24. 9 (16. 1) -64. 5% 2. 5x - 237
NeXplore C orporation 6/30/2009 NX P C OT C P K US D United S ta tes 1 37. 9 1. 7 (13. 3) NM 24.6x - NA
Ngi G roup Inc. 9/30/2009 2497 TS E JPY J a pan 24140. 00 33. 4 81. 7 3.2 3.9% - - NA
Northgate T echnologies L imited 9/30/2009 590057 BSE INR India 30. 55 22. 2 46. 4 (49. 8) NM 0. 5x - NA
O pen T ext C orp. 9/30/2009 OT E X Na s daqG S US D C anada 39. 22 2,211. 3 814.5 211.1 25. 9% 2. 8x 10. 8x 3, 900
O penwave S ys tems Inc. 9/30/2009 OP W V Na s daqG S US D United S ta tes 2. 24 187. 1 190.5 6.2 3.3% 0. 4x 13. 2x 590
P erfect W orld C o. , Ltd. 9/30/2009 PWRD Na s daqG S US D C hina 43. 35 2,157. 0 286.1 157.4 55. 0% 0. 5x 0. 8x 2, 096
P NI Digital Media Inc. 6/30/2009 T S X V :P N T S XV C AD C anada 1. 71 53. 8 21. 0 2.3 11. 0% 2. 5x 22. 4x NA
Q uepa s a C orp. 9/30/2009 QP S A OT C B B US D United S ta tes 2 21. 6 0. 2 (9.8) NM - - 74
O AO R B C Information S ys tems 12/31/2007 R BCI R TS US D R us s ia 1. 60 222. 0 157.4 20. 6 13. 1% 0. 0x 0. 4x NA
S handa Interactive E nterta inment Ltd. 9/30/2009 S NDA Na s daqG S US D C hina 51. 64 3,473. 1 694.3 317.2 45. 7% - - 3, 124
S hutterfly, Inc. 9/30/2009 S FLY Na s daqG S US D United S ta tes 15. 76 404. 6 223.1 27. 0 12. 1% 1. 3x 10. 8x 514
S K C ommunications C o., Ltd. 12/31/2008 A066270 K OS E KR W S outh K orea 9550. 00 335. 1 192.7 12. 5 6.5% 1. 7x 26. 7x NA
S NAP Interactive, Inc. 9/30/2009 S TVI OT C B B US D United S ta tes 0 3.3 3. 4 0.5 15. 6% 0. 5x 3. 2x 11
S NM G loba l Holdings 9/30/2008 S NMN OT C P K US D United S ta tes 0. 00 0.0 2. 0 (0.7) -34. 8% 1. 1x - 33
S ocial Media V entures Inc. 12/31/2008 S MV I OT C P K US D United S ta tes 0 0.0 0. 1 (0.1) -60. 6% 4. 5x - NA
S ocialwis e, Inc. 6/30/2009 S C LW OT C B B US D United S ta tes 0. 50 23. 4 0. 0 (5.6) NM - - NA
S ohu. com Inc. 9/30/2009 S O HU Na s daqG S US D C hina 52. 34 2,012. 8 501.0 218.4 43. 6% 2. 9x 6. 7x 3, 197
S park Networks , Inc. 9/30/2009 L OV AME X US D United S ta tes 2 48. 8 47. 5 10. 0 21. 0% 0. 9x 4. 5x 183
S pectrumDNA, Inc. 9/30/2009 S P XA OT C B B US D United S ta tes 0 6.8 0. 1 (2.5) NM 48.7x - 7
T encent Holdings Ltd. 9/30/2009 700 S E HK HK D C hina 147 34, 567.1 1, 588. 4 811.3 51. 1% 23.9x 46. 7x 6, 194
T he P arent C ompany 8/2/2008 K IDS . Q OT C P K US D United S ta tes 0. 01 0.2 112.0 (13. 5) -12. 0% 0. 2x - 347
T he9 Limited 12/31/2008 NC T Y Na s daqG S US D C hina 7. 48 187. 8 250.6 85. 5 34. 1% - - 1, 626
T heS treet. com, Inc. 3/31/2009 TS CM Na s daqG M US D United S ta tes 2. 28 69. 8 67. 0 1.9 2.9% 0. 1x 2. 7x 310
T ree.C om, Inc. 9/30/2009 TR E E Na s daqG M US D United S ta tes 7. 23 78. 8 217.1 9.7 4.5% 0. 2x 5. 5x 700
Unis erve C ommunica tions C orp. 8/31/2009 T S X V :US S T S XV C AD C anada 0. 04 0.9 16. 1 0.1 0.9% 0. 3x 37. 2x NA
United O nline Inc. 9/30/2009 UNT D Na s daqG S US D United S ta tes 7. 00 592. 1 996.8 212.9 21. 4% 0. 8x 4. 0x 1, 469
UOMO Media, Inc 7/31/2009 UO MO OT C B B US D C anada 0 5.2 0. 8 (0.4) -54. 2% 7. 1x - NA
V alueC lick Inc. 9/30/2009 V C LK Na s daqG S US D United S ta tes 10 859. 2 545.7 130.8 24. 0% 1. 3x 5. 4x 1, 189
V OIS , Inc. 6/30/2009 V O IS OT C B B US D United S ta tes 0 9.9 0. 0 (1.0) NM - - 4
W ebzen Inc. 9/30/2009 W ZE N Na s daqG M US D S outh K orea 3. 00 35. 6 23. 0 2.5 11. 0% - - 328
W izzard S oftwa re C orporation 9/30/2009 W ZE AME X US D United S ta tes 0. 38 20. 3 5. 2 (3.9) -76. 4% 4. 2x - 110
W orlds . com Inc. 9/30/2009 W DDD OT C B B US D United S ta tes 0. 10 5.4 0. 1 (0.6) NM - - 1
W ynds torm C orpora tion NA W Y ND OT C P K US D United S ta tes 0. 04 0.7 NA NM NM - - NA
XING AG 9/30/2009 O 1B C XT R A E UR G ermany 33. 40 257. 9 62. 5 16. 9 27. 0% 3. 2x 11. 9x 266
Y D O nline C orp. 12/31/2007 A052770 K OS E KR W S outh K orea 7000. 00 88. 0 57. 4 12. 4 21. 6% 1. 6x 7. 7x NA
Y nk K orea Inc. 12/31/2008 A023770 K OS E KR W S outh K orea 3695. 00 16. 5 11. 9 1.3 10. 5% - - NA
High 34, 567.1 2,002. 6 811. 3 68. 2% 48.7x 46. 7x 6, 194
Low 0.0 0. 0 -84.0 -98. 9% - - 1
Average 785.8 163.6 40.8 5.6% 5.3x 11.0x 906
Median 39. 5 51.9 1. 9 11. 1% 1. 6x 7. 8x 252

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 )
December starts at strong pace: Total transaction value in the W eb 2.0 universe for the first week of December is $68.8
million. The number of financings stands at seven averaging $9.8 million each. In comparison, total capital raised in
November was $203.4 million, averaging $11.3 million (18 deals); October was $171.3 million, averaging $6.3 million (27
deals); and September was $232.8 million, averaging $9.0 million (26 deals).

Financing Activity Last Twelve Months

400.0 16.0

14.6

350.0 14.0

300.0 11.3 12.0

9.8
250.0 10.0
9.0
(US$m)

(US$m)
200.0 7.6 8.0
7.1
6.7 6.6
6.5 6.3
6.2
150.0 5.6 6.0
4.9

100.0 4.0

50.0 2.0

0.0 0.0
Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09

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

Figure 2. Financings, Last Twelve Months

Source. Company reports
 Page 4

Deal round-up for December: The large deal highlights for the month include:

• Lala – streaming music site – was acquired by Apple for a rumoured $80 million.

• Zoosk – online social dating web site – raised $30 million in its fourth financing.

• gWallet – developer of virtual currency technology for monetizing brands, publishing, and social media platforms –
raised $12.5 million in a first round financing.

All other deals in the month were in the amount of $10 million or less. For additional details on financings, see Figures 23
and 24 (at end of note).

Financing & M/A Summary - Last Three Months

200.0

180.0

160.0

140.0

120.0

Dec-09
(US$m)

100.0 Nov-09
Oct-09

80.0

60.0

40.0

20.0

0.0
Phoenix New Media
DailyMotion

Millennial Media

Jive Software

Reality Mobile
Movik Networks
Yext

Box.net
Motley Fool
PlayFish

Zynga

Evernote
Ooyala

wooga

Bizo
Eventbrite

Overtone
Playfire

DailyBooth

SocialMedia
Aviary

Nival Network
AppNexus

Fizzback

Linkedex
Lala
RockYou
Ku6

Engine Yard

CubeTree

SeekingAlpha

Vdopia

JanRain
ViVu

Blekko
Godengo

Onehub

Hot Potato

IngBoo
Chango

Listia
Ecast Network

StockTwits

DataSync

PBworks
Playdom

Scoopler
VEVO
HubSpot

Spigit
ScanScout

Placecast

StatusNet

Aurora Feint
Joost
Sezmi

Technorati
Smaato

Credit Karma

SimpleGeo
Zoosk

PopCap Games

Altruik
Sometrics
Scout Labs

Adfonic
Qunar.com

FeedRoom

Alice.com

Prosper.com
Amie Street

Imeem
Watercooler
gWallet

Figure 3. Capital Market Activity, Last Three Months

Source. Company reports
 Page 5

Broad-based sector financing: Video, Gaming, Advertising, Collaboration, and Analytics experienced the most financing
activity among our W eb 2.0 sector categories in the past three months by number of transactions (six each). Social
Networks remain strong with five deals in the past quarter. Infrastructure and Search round out the top three positions at
four deals each over the past three months (Figure 4). The $400 million acquisition of Playfish skews the Virtual W orlds
segment to the 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

400.0 117.3 98.5 81.0 57.0 50.0 44.1 40.9 39.8 37.5 30.0 22.2 21.1 15.0 12.5 10.0 9.9 8.5 7.0 6.4 4.0 3.9 2.2 1.2 0.8 0.7
0.0

Social Commerce
Gaming

Documents
Travel

Wiki
Media

Collaboration

Mobile

Microblog

Publishing

Enterprise
Music

Financial Services
Widget

Infrastructure

Search

Mobile Ad

Classified
Social Networks

Virtual Goods
Virtual World

Video

Advertising

Crowdsourced

Aggregation
Analytics

Content
# companies
1 6 6 2 3 1 5 6 4 6 4 6 3 1 1 1 2 1 1 2 3 2 1 1 1 1

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

Source. Company reports
 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 Q1/09. Since then, the index has diverged in a much
stronger recovery relative to the NASDAQ index (Figure 5).

Web 2.0 Index Price Performance

250

200

150

100

50

0
12/8/2008

12/22/2008

1/5/2009

1/19/2009

2/2/2009

2/16/2009

3/2/2009

3/16/2009

3/30/2009

4/13/2009

4/27/2009

5/11/2009

5/25/2009

6/8/2009

6/22/2009

7/6/2009

7/20/2009

8/3/2009

8/17/2009

8/31/2009

9/14/2009

9/28/2009

10/12/2009

10/26/2009

11/9/2009

11/23/2009

12/7/2009
Index: Web 2.0 (Market Cap) ^COMP - Share Pricing

Figure 5. Web 2.0 Price Performance

Source. Capital IQ
 Page 7

Market pull-back abates – universe split between risers and decliners: Twenty-five companies in our universe had
positive stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), while 22
companies showed negative 1-week returns.

1 Week P rice P erformance

S K Communications Co., Ltd. 26.7%
Quepas a Corp. 22.3%
Y D Online Corp. 14.4%
Tree.Com, Inc. 12.1%
Mix i, Inc. 12.0%
Webz en Inc. 10.3%
S hutterfly , Inc. 9.9%
Ngi G roup Inc. 8.7%
V alueClick Inc. 6.4%
Modern Times G roup Mtg A B 6.3%
HanbitS of t, Inc. 6.3%
Frogs ter Interactive Pictures 5.6%
G ameOn Co Ltd. 5.0%
NEOWIZ Games Corporation 4.6%
PNI Digital Media Inc. 3.6%
S handa Interactive 3.6%
Open Tex t Corp. 3.0%
United Online Inc. 2.9%
LookS mart, Ltd. 2.9%
Tencent Holdings Ltd. 2.9%
Giant Interac tive G roup, Inc. 2.3%
CDC Corp. 2.1%
XING A G 1.5%
G amania Digita l Entertainment 1.4%
A Q Interactive, Inc. 0.2%
Y nk K orea Inc. 0.0%
DA DA S pA 0.0%
My riad Group A G -0.2%
A s knet A G -0.6%
S park Netw orks , Inc. -0.7%
The9 Limited -0.9%
Perfect World Co., Ltd. -1.8%
NetDragon WebS of t, Inc. -2.0%
TheS treet.com, Inc. -2.1%
IA C/InterA ctiveCorp. -2.3%
K ings of t Co. Ltd. -2.6%
Neteas e.com Inc. -2.6%
G ravity Co., Ltd -2.7%
Chines e Gamer International -3.3%
G ree, Inc. -3.5%
Eolith Co. Ltd. -3.6%
G igaMedia Ltd. -4.0%
Cy berplex Inc. -4.1%
Changy ou.com Limited -4.6%
A ctoz S of t Co., Ltd. -4.8%
Openw ave S y s tems Inc. -5.1%
Northgate Technologies Limited -5.3%
S ohu.com Inc. -6.1%
Fluid Mus ic Cana da, Inc. -10.0%
-0.15 -0.1 -0.05 0 0.05 0.1 0.15 0.2 0.25 0.3

Figure 6. 1-Week Price Performance

Source. Capital IQ

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
Offerpal Media, Inc .; S ocialwis e, Inc .
(OTC B B : S C L W )
S ohu.c om Inc . (Nas daqG S : S OHU)
is eemedia Inc . (TS XV: IE E )
B etawave C orporation (OTC B B : B WAV) B etawa ve C orporation Amends R es tated Loa n O n November 25, 2009, B eta wa ve C orporation a nd S ilicon V a lley B a nk entered into an Amended a nd R es ta ted Loan a nd
a nd S ecurity Agreement; Announces C hief
E xecutive C hanges
is eemedia Inc . (TS XV: IE E )
Figure 7a. Key Developments
Source. Capital IQ
Page 8
Headline Notes
S ocia lwis e, Inc. E nters into S trategic S ocialwis e, Inc. announced tha t it ha s entered into a s trategic partners hip with O fferpal Media , Inc. T he two companies will
P artners hip with O fferpal Media work together to promote their exis ting pa yment s olutions , a s well as develop new pa yment progra ms s pecifically for the
teen a nd tween ma rket. Offerpa l will fea ture B illMyP a rents on its proprietary monetiza tion pla tform as a n a lterna te pa yment
s olution alongs ide V is a , Ma s terC a rd, P a yP al and others , providing teens a nd tweens with an eas y way to a cquire virtual
currency a cros s O fferpa l's network of 2, 000+ publis hers . T he virtual currency will be s pent on items s uch a s virtual gifts ,
s ubs criptions , game-play upgra des , and other virtua l goods . B illMyP arents and O fferpal will a ls o collabora te to launch
innovative programs tha t will expa nd their rea ch into the teen and tween online pa yment s olutions ma rket.
S ohu. C om Announces Ma na gement S ohu. com Inc. announced the promotion of Ms . B elinda W a ng to C o-P res ident a nd C hief Opera ting O fficer, and Mr.
P romotions Xia ochua n W ang to C hief T echnology O fficer.
is eemedia Inc. , Annual G eneral Meeting, Nov is eemedia Inc. , Annual G eneral Meeting, Nov 30, 2009, a t 16: 00 US E a s tern T ime. Loca tion: Le Meridien K ing E dwa rd 37
30, 2009 K ing S treet E as t, T oronto, O ntario, C a nada. Agenda: T o receive and cons ider the a udited cons olida ted financia l s ta tements
of the corporation for the fis ca l yea r ended J une 30, 2009, together with the report of the auditors thereon; to elect directors ;
to a ppoint auditors a nd to a uthorize the directors to fix their remuneration; a nd to tra ns act s uch further or other bus ines s a s
may properly come before the Meeting or any adjournment or adjournments thereof.
S ecurity Agreement (the 'A& R Loan Agreement'') which a mends a nd res ta tes the Loan a nd S ecurity Agreement, dated as of
Ma rch 27, 2009 between S ilicon V a lley B a nk a nd the company. T he A&R L oa n Agreement amended a nd res tated the
O rigina l Loa n Agreement to, among other things : (i) modify the interes t rate on the fina nced receiva ble to be ba s ed on the
gros s amount (rather tha n the fina nced a mount) of the fina nced receiva bles and other rela ted fees des cribed below, (ii)
delete the letter of credit, foreign exchange a nd cas h mana gement s ub facilities a nd s ub limits , (iii) a ccelera te the ma turity
date from Ma rch 27, 2011 to J a nuary 31, 2010 (the 'Ma turity Da te''), (iv) increas e the default rate from 4% to 5% a nd (v)
remove the fina ncia l covenants in the O rigina l L oa n Agreement. T he ava ila ble revolving credit line remains s et a t $1. 5
million. T he borrowings under the A&R L oan Agreement rema in s ecured and ba s ed upon a percentage of certa in eligible
billed accounts receiva bles of the company, and unbilled accounts
receiva bles a re no longer included in the borrowing ba s e. Under the A&R L oa n Agreement, the C ompa ny may borrow,
repay a nd reborrow under the line of credit fa cility at any time s ubject to certa in terms and conditions , but the adva nces
a re s ubject to a lockbox arra ngement and are pa id when pa yment is received on s uch fina nced receivable.
Adva nces under the line of credit facility s ha ll continue to a ccrue interes t at a per a nnum rate equa l to the grea ter of (i)
3. 0% a bove S ilicon V a lley B a nk's a nnounced prime ra te or (ii) 7. 0% which interes t s ha ll be charged to the coa ny bas ed
on the gros s amount of the fina nced receiva bles . T he A&R L oa n Agreement als o requires tha t the compa ny pay
certain a dditional monthly fees including a collatera l ha ndling fee equa l to 0. 50% of the gros s a mount of the financed
receiva bles . Under the A& R Loan Agreement, the minimum monthly finance cha rge (including interes t a nd fees ) to be
paid by the compa ny is $5, 500. T he obliga tions under the A&R L oan Agreement rema in colla tera lized by s ubs tantia lly
a ll of the compa ny's a s s ets . T he A& R L oa n Agreement retains the a ffirma tive and negative covenants principally
rela ting to liens , indebtednes s , a nd inves tments , dis tributions to s hareholders a nd the us e a nd dis pos ition of a s s ets .
C erta in covenants were a mended purs ua nt to the A& R Loan Agreement a nd the financia l covena nts s et forth in the
O rigina l Loa n Agreement were removed. In addition, the A&R L oa n Agreement contains cus toma ry events of default.
O n November 23, 2009, the company and Matt F reeman mutua lly agreed to termina te his employment a s C hief
E xecutive O fficer of the compa ny effective a s of November 30, 2009. Mr. F reema n will rema in on the company's
boa rd of directors . T he boa rd a ls o a ppointed T abreez V erjee, currently the P res ident of the compa ny, as interim C hief
E xecutive O fficer.
is eemedia Inc. R eports Una udited is eemedia Inc. reported unaudited cons olidated ea rnings res ults for the firs t quarter ended S eptember 30, 2009. T he
C ons olida ted E a rnings R es ults for the F irs t compa ny reported for the net los s and comprehens ive los s wa s C AD 1, 009, 339 or C AD 0. 02 los s per bas ic a nd diluted
Q uarter E nded S eptember 30, 2009 s ha re on revenue of C AD 484, 718 aga ins t net los s and comprehens ive los s of C AD 1, 518, 400 or C AD 0. 03 los s per ba s ic
a nd diluted s ha re on revenue of C AD 329, 640 for the s a me period las t yea r. Los s before inters t was C AD 1, 011, 656 a ga ins t
C AD 1, 535, 736 for the s ame period la s t yea r. C as h us ed in opera ting a ctivities wa s C AD 851, 683 aga ins t C AD 1, 256, 749
for the s a me period las t yea r. P urcha s e of property a nd equipment wa s C AD 1, 721 a gains t C AD 10, 927 for the s ame period
la s t year.
 Page 9

K ey Developments
C ompany Headline
C L IC K E R Inc . (OTC B B : C L K Z) C L IC K E R Inc. a nnounced dela yed annua l 10-K
filing
B etawave C orporation (OTC B B : B WAV) B etawa ve C orporation Appoints Ma tt F reema n
a s V ice C hairman
S handa Interac tive E ntertainment L td. S ha nda Intera ctive E nterta inment Ltd.
(Nas daqG S : S NDA) P rovides E a rnings G uidance for the T hird
Q uarter E nded S eptember 30, 2009
Open Text C orp. (Nas daqG S : OTE X) O pen T ext C orp. R eleas es New V ers ion of
C onnectivity S olutions C ompatible with
W indows 7
Notes
O n 12/01/2009, C L IC K E R Inc. a nnounced that they will be una ble to file their next 10-K by the deadline required by the S E C .
B eta wa ve C orporation a nnounced tha t C E O Matt F reema n, who joined the compa ny in J uly 2008, will tra ns ition into the role
of V ice C ha irma n.
S ha nda Interactive E nterta inment Ltd. was es timated to reap a revenue of $197. 69 million for the three months ended
S eptember 30, 2009. T he number wa s $137. 3 million a yea r a go. T he company's ea rnings per s hare hit $0. 88, higher than
$0. 68 a yea r a go.
O pen T ext C orporation a nnounced the relea s e of vers ion 14 of its C onnectivity S olutions cons is ting of O pen T ext E xceed,
the lea ding P C X s erver s olution for W indows , O pen T ext Hos tE xplorer, its terminal emulation s uite, a nd its s ecure s hell
clients and network file s ys tem s oftwa re. L evera ging the new productivity a nd s ecurity features of W indows 7, this relea s e
offers orga niza tions a s mooth tra ns ition to the new Micros oft pla tform. W orking clos ely with Micros oft, O pen T ext des igned
its la tes t C onnectivity S olutions to ta ke a dva nta ge of W indows 7 technologies . S pecifica lly, us ers of the new s oftware s uite
will be a ble to take a dva ntage of the following enha ncements : S upport for W indows 7 T ouch technology a llows us ers to
intera ct with UNIX and Mainframe applica tions through an intuitive and ea s y to us e touch interface; J ump Lis ts in the T as k
B ar and S tart Menu provide fa s ter a cces s to frequently a cces s ed items a nd frequently performed ta s ks ; Multiple Documents
preview reduces the time s pent s witching between applica tions a nd open s es s ions ; New F IP S 140-2 va lidated cryptographic
module provides s tronger s ecurity to connections .

VOIS , Inc. (OTC B B : VOIS )
V O IS , Inc. to L aunch C loud Applica tion
Development P orta l
V OIS , Inc. a nnounced tha t the compa ny is launching a new porta l within its exis ting s ite fra mework to provide tes ting a nd
development, code and da ta repos itories for both contract a nd freela nce s oftwa re developers working to build next
genera tion cloud applica tion s oftwa re. Ava ila ble J a nuary 2010, the V OIS C loud Application F os tering E nvironment (C AF E ) is
to provide cloud-ba s ed s tora ge for the development of code, s haring of code and AP I development proces s es . Additiona lly,
the da ta s tora ge ma y be us ed for the tes ting of new a nd innova tive a pplica tions being developed by freela nce s oftwa re
des igners , open s ource community members , a nd others in order to s peed adoption of the ra pidly ma turing technology a rea
now commonly referred to by both pres s a nd indus try as 'C loud C omputing'.

S handa Interac tive E ntertainment L td.
(Nas daqG S : S NDA)
S ha nda Intera ctive E nterta inment Ltd.
Announces Unaudited C ons olida ted F ina ncial
R es ults for the T hird Q uarter a nd Nine Months
E nded S eptember 30, 2009
S ha nda Interactive E nterta inment Ltd. a nnounced una udited cons olida ted fina ncia l res ults for the third qua rter and nine
months ended S eptember 30, 2009. In the third quarter of 2009, the compa ny reported net revenues of R MB 1, 382. 9 million
($202. 5 million), repres enting a n increas e of 48% from R MB 936. 5 million year-over-yea r. Opera ting income for the third
qua rter of 2009 wa s R MB 510. 7 million ($74. 8 million), a n increas e of 34% from R MB 381. 5 million in the third qua rter of
2008. Non-G AAP opera ting income for the third qua rter of 2009 wa s R MB 595. 0 million ($87. 1 million), an increa s e of 51%
from R MB 392. 8 million in the third qua rter of 2008. Net income a ttributa ble to ordinary s ha reholders for the third qua rter of
2009 was R MB 435. 3 million ($63. 7 million), an increa s e of 29% from R MB 337. 1million in the third quarter of 2008.
E arnings per diluted ADS in the third qua rter of 2009 were R MB 6. 18($0. 90), compared with R MB 4. 62 in the third qua rter of
2008. Non-G AAP net income attributable to ordina ry s ha reholders for the third quarter of 2009 was R MB 519. 6 million ($76. 0
million), a n increa s e of 49% from R MB 348. 4
million in the third quarter of 2008. Non-G AAP earnings per diluted ADS in the third qua rter of 2009 were R MB
7. 40($1. 08), compa red with R MB 4. 78 in the third qua rter of 2008. T he company reported income before income ta x
expens es , equity in los s of affilia tes of R MB 582. 4 million a nd diluted ea rnings per s ha re of R B M 3. 09 compa red to
income before income tax expens es , equity in los s of a ffiliates of R MB 434. 4 million and diluted ea rnings per s hare of
R B M 2. 31 for the s a me period of la s t yea r.

Figure 7b. Key Developments – continued

Source. Capital IQ
 Page 10

K ey Developments
C ompany Headline Notes
S handa Interac tive E ntertainment L td. S ha nda Intera ctive S ecures $1. 6 B illion F or S ha nda Interactive E nterta inment Ltd. pla ns to a cquire more digital enterta inment platforms and ga me content developers to
(Nas daqG S : S NDA) Acquis itions divers ify its revenue s tream. S ha nda s pun off S handa G a mes in S eptember. G race W u, S ha nda's chief financial officer told
inves tors in a conference call tha t S handa is keen to us e its $1. 6 billion ca s h pile on more acquis itions . He a dded, “W e will
cons ider a cquiring more ga me content developers a nd other digita l enterta inment content players . ”

IAC /InterAc tiveC orp. (Nas daqG S : IAC I)
F acebook, Inc .; Friends ter, Inc.;
Tencent Holdings L td. (S E HK : 700)
IAC /InterActiveC orp Appoints Nick S toumpa s
a s V ice P res ident, Inves tor R ela tions a nd
T rea s urer to R epla ce E oin R yan
F riends ter Ma y R eportedly B e S old T o As ia n
B uyer B y December E nd
IAC /InterActiveC orp. a nnounced tha t Nick S toumpa s , currently IAC V ice P res ident a nd T reas urer, has been named V ice
P res ident, Inves tor R ela tions and T rea s urer. Mr. S toumpas s ucceeds E oin R ya n, the previous V ice P res ident of Inves tor
R elations who left IAC in November. As V ice P res ident of Inves tor R elations and T rea s urer, Mr. S toumpas will ma intain his
exis ting res pons ibilities a s T rea s urer of IAC a nd will have prima ry res pons ibility for the s tra tegic and tactical elements of
IAC 's Inves tor R ela tions program, the goa l of which is to ens ure the ma rketpla ce unders ta nds and fairly values the
compa ny. Mr. S toumpa s will continue to report to T om McInerney, C F O of IAC . Lis a J a ffa , Ma na ger of IAC Inves tor
R elations , will report to Mr. S toumpa s .
F riends ter Inc is likely to be acquired an As ia n buyer by the end of December for at leas t $100 million, a s ource clos e to the
s itua tion s ta ted. T he company ha d rejected a $30 million buyout offer from G oogle Inc s ix yea rs a go, media reports s tated.
A s ource s tated that F riends ter will be s old to a n As ia n lis ted company for more tha n $100 million. T he s ource a dded tha t
the deal will be a nnounced by the end of December. R euters reported tha t s ource denied to be identified a s the informa tion
wa s not yet public. In J uly, T echC runch ha d va lued F riends ter a t $210 million. C hief executive of the compa ny, R icha rd
K imber s tated that mos t of the s uitors for F riends ter were As ia n buyers . He s a id: "W e ha ve a s hortlis t a t this point tha t we
a re negotiating with. " He a dded tha t Morgan S tanley ha s been engaged to ha ndle the deal. T encent Holdings Ltd is known
to be a mong the s hort-lis ted bidders . T he s ources s ta ted that F a cebook Inc ha d als o expres s ed interes t but was turned
down due to competition a nd intellectual property is s ues .

Openwave S ys tems Inc. O penwa ve S ys tems Inc. has filed a S helf O penwave S ys tems Inc. ha s filed a S helf R egis tration in the amount of $2. 95 million.
(Nas daqG S : OP WV) R egis tra tion in the a mount of $2. 95 million.
Open Text C orp. (Nas daqG S : OTE X) O pen T ext C orp. , Annua l G enera l Meeting, O pen T ext C orp. , Annual G eneral Meeting, Dec 03, 2009, a t 10: 00 US E a s tern T ime. L oca tion: 275 F ra nk T ompa Drive,
Dec 03, 2009 W a terloo, N2L 0A1, O ntario, C anada . Agenda : T o receive the financia l s tatements of the C ompany for the yea r ended J une
30, 2009, together with the report of the auditors thereon; to elect directors ; to re-a ppoint auditors a nd a uthorize the directors
to fix their remunera tion; a nd to trans a ct s uch other bus ines s a s may properly come before the meeting or a ny a djournment
thereof.
OAO R B C Information S ys tems O AO R B C Information S ys tems to R es tructure O AO R B C Informa tion S ys tems a nnounced to res tructure its debts . According to the compa ny, a s a res ult two tied dea ls
(R TS : R B C I) its Debts worth R UB 4. 87 billion, debts of s ubs idia ries of the holding to R B C Informa tion S ys tems will be owed to R B C -T V Mos cow
J S C (R UB 0. 7 billion) and P intoleza Holdings L td. (R UB 4. 17 billion). R B C Informa tion S ys tems will get bonds of R B C -T V
Mos cow worth R UB 0. 7 billion a nd E urobonds of E . M. I. S . F ina nce B . V . worth R UB 4. 17 billion. After an a greement with
creditors is s igned, thes e bonds and E urobonds will go to creditors , while R B C -T V Mos cow will become a new corporative
center of R B C . R B C owes R UB 4. 87 billion to banks ; $60 million is the debt of the holding's s ubs idia ries .

Openwave S ys tems Inc. O penwa ve S ys tems Inc. , Annual G eneral O penwave S ys tems Inc. , Annua l G enera l Meeting, Dec 03, 2009, at 11: 00 US P acific T ime. L ocation: 2100 S ea port
(Nas daqG S : OP WV) Meeting, Dec 03, 2009 B ouleva rd, R edwood C ity, C A 94063, United S ta tes . Agenda: T o elect G erald D. Held a nd David C . Na gel a s directors ; to
cons ider the amendment to the a mended and res ta ted 1999 Directors E quity C ompens a tion P la n; to ra tify the s election of
K P MG L LP a s independent a uditors for the fis ca l yea r ending J une 30, 2010; and to tra ns a ct s uch other bus ines s as may
properly come before the meeting or a ny a djournment thereof.
TheS treet.com, Inc. (Nas daqG M: TS C M) T hes treet. com, Inc. Decla res Q uarterly C as h T heS treet. com, Inc. a nnounced tha t its boa rd of directors has declared the C ompa ny's qua rterly ca s h dividend on its
Dividend, P a yable on December 31, 2009 common s tock. T he ca s h dividend of $0. 025 per s ha re of common s tock will be pa yable December 31, 2009, to all
s ha reholders of record a t the clos e of bus ines s on December 15, 2009.

Figure 7c. Key Developments – continued

Source. Capital IQ
 Page 11

VALUATION
Online Gaming companies lead market-cap charts: Twelve companies in our W eb 2.0 universe top US$1 billion in
market capitalization (Figure 8). Fifty-eight of the 89 companies have market caps under US$100 million, with 38 under
US$25 million. Online gaming companies dominate the top of the list, led by Tencent Holdings (SEHK:700) with a market
cap of approximately US$34.6 billion.

Market C ap (US D m)
Tencent Holdings Ltd. 34567.1
Neteas e.com Inc. 4818.6
S handa Interactive Entertainment 3473.1
Modern Times G roup Mtg A B 3119.2
IA C/InterA ctiveCorp. 2507.4
G ree, Inc. 2222.9
Open Tex t Corp. 2211.3
Perfect W orld Co., Ltd. 2157.0
S ohu.com Inc. 2012.8
Changy ou.com Limited 1704.5
Giant Interactive G roup, Inc. 1628.3
Mix i, Inc. 1351.0
Chines e G amer International 1103.5
V alueClick Inc. 859.2
K ings of t Co. Ltd. 796.9
NEOWIZ G ames Corporation 780.8
United Online Inc. 592.1
S hutterf ly , Inc. 404.6
S K Communications Co., Ltd. 335.1
NetDragon W ebS oft, Inc. 295.3
XING A G 257.9
CDC Corp. 257.5
G amania Digital Entertainment Co., 222.9
OA O R B C Information S y s tems 222.0
G igaMedia Ltd. 210.4
My riad Group A G 207.5
G ungHo Online Entertainment, Inc. 197.3
The9 Limited 187.8
Openw ave S y s tems Inc. 187.1
A ctoz S of t Co., Ltd. 151.1
DA DA S pA 149.0
Fluid Mus ic Canada, Inc. 104.4
Y D Online Corp. 88.0
Tree.Com, Inc. 78.8
NeuLion Incorporated 74.9
Cy berplex Inc. 74.1
HanbitS oft, Inc. 71.6
GameOn Co Ltd. 70.8
Frogs ter Interactive Pictures A G 70.4
TheS treet.com, Inc. 69.8
Eolith Co. Ltd. 66.8
GeoS entric Oy j 65.8
PNI Digital Media Inc. 53.8
S park Netw orks , Inc. 48.8
G ravity Co., Ltd 40.6
DigitalTow n, Inc. 38.3
NeXplore Corporation 37.9
DX N Holdings B hd 36.9
Webz en Inc. 35.6
Ngi G roup Inc. 33.4
A s s ociated Media Holdings Inc. 32.9
A s knet A G 26.5
A Q Interactive, Inc. 24.7
S ocialw is e, Inc. 23.4
Northgate Technologies Limited 22.2
Quepas a Corp. 21.6
Wiz z ard S of tw are Corporation 20.3
LookS mart, Ltd. 18.3
Y nk K orea Inc. 16.5
A cceleriz e New Media, Inc. 15.8
Dolphin Digital Media, Inc. 15.4
Jumbuck Entertainment Limited 13.6
Ex tens ions , Inc. 13.3
MOK O.mobi Limited 12.5
Lingo Media Corporation 11.0
Magnitude Inf ormation S y s tems Inc. 10.2
V OIS , Inc. 9.9
is eemedia Inc. 9.2
IA S Energy , Inc. 7.8
S pectrumDNA , Inc. 6.8
W orlds .com Inc. 5.4
B right Things plc 5.3
UOMO Media, Inc 5.2
DigitalPos t Interactive, Inc. 4.6
B roadWebA s ia Inc. 4.2
S NA P Interactive, Inc. 3.3
CornerWorld Corporation 2.9
B ey ond Commerce, Inc. 2.7
B etaw ave Corporation 2.5
B igs tring Corp. 1.8
LiveWorld Inc. 1.0
Unis erve Communications Corp. 0.9
Wy nds torm Corporation 0.7
K A B Dis tribution Inc. 0.6
CLICK ER Inc. 0.5
The Parent Company 0.2
China G atew ay Corporation 0.2
Dibz International, Inc. 0.0
S NM G lobal Holdings 0.0
S ocial Media V entures Inc. 0.0
0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000

Figure 8. Market Cap Rankin

Source. Capital IQ
 Page 12

TEV/Revenue (LTM) averages 5.3x: The overall average TEV/Revenue (LTM) multiple for our group is 5.3x (vs. 5.7x last
week) (Figure 9). Two companies trade above 25x revenue – SpectrumDNA, Inc. (OTCBB:SPXA) at 48.7x, and Bigstring
Corp. (OTCBB:BSGC) at 44.4x. The median of 1.6x compares is flat vs. last week. Note that we exclude multiples greater
than 50x. Thirty-one companies have multiples under 1.5x.

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

60. 0

48.7
50. 0
44.4

40. 0

30. 0
23.924.6

20. 0 18.2
16.6
14.815.0

10.1
10. 0 8.1 8.7
A v erage, 5. 3 7.1 7.2
5.7
4.5 4.5 5.0 5.1 5.3 5.5
3.2 3.2 3.7 4.2
0.8 0.9 1.0 1.0 1.1 1.1 1.3 1.3 1.3 1.3 1.3 1.6 1.6 1.7 1.8 1.9 2.5 2.5 2.8 2.9
0.0 0.0 0.0 0.1 0.2 0.2 0.2 0.2 0.3 0.4 0.4 0.5 0.5 0.5 0.5 0.6 0.6 0.7 0.7 0.8
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 ungHo O nline E ntertainment, Inc.

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

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

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.

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

NeX plore C orporation

T heS treet.com, Inc .

S NAP Intera ctive, Inc.

United O nline Inc .

O pen T ex t C orp.

S pec trumDNA, Inc.

C hina G atewa y C orporation
AQ Intera ctive, Inc .

C y berplex Inc .

IAC /InterAc tiveC orp.

G igaMedia Ltd.

S pa rk N etwork s , Inc .

V alueC lic k Inc .

NetDra gon WebS oft, Inc .

Y D O nline C orp.

S ohu.com Inc .

E olith C o. Ltd.

is eemedia Inc .

F rogs ter Intera ctiv e P ictures AG

Mix i, Inc .
G ree, Inc .

T encent Holdings Ltd.

XIN G AG
O penwave S y s tems Inc .

P erfect World C o., Ltd.

H anbitS oft, Inc .

Y nk K orea Inc .

S ocial Media V entures Inc .

B igs tring C orp.

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

As k net AG

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 12.7x (vs. 14.7x last week). On a geographic basis, the
United States has the most companies (38), trading at an average of 7.2x revenue (vs. 8.5x last week) (Figure 11). Ten of
the companies are Canadian (average 3.6x revenue).

Average TEV/LTM Revenue - By Country

Average TEV/LTM Revenue - By Exchange 16.0 14.8
16.0 14.8
14.0
14.0
12.7 12.0
12.0
10.0 10.2 10.0
8.5
(x)

8.5 8.0
(x)

8.0 7.2
8.1 7.1 6.6 5.7
6.0 6.3 6.1 5.2 6.0 5.2 5.0
4.0 4.1 3.2 2.6 2.3 4.0 3.6
3.2
1.8 1.6 1.3 0.8 0.6 2.3 1.8
2.0 0.5 0.2 2.0 0.8 0.7
0.6 0.5
0.0 0.0 0.0 0.0
OTCPK
OTCBB

GTSM

NasdaqGM
HLSE

SEHK

TSE

KOSE

NasdaqGS
OSE
CM

RTS
OM
TSX

XTRA

AMEX

KLSE
BSE
SWX
TSXV
ASX

Germany
Finland

United

China

Japan

Canada

Hong Kong

Malaysia

India

Russia
Italy
South
Korea
States
Australia

Taiwan

Switzerland

Sweden

# Companies 1 18 3 2 2 4 5 11 3 4 1 2 6 1 14 1 1 1 1 5 1
# Companies 1 2 38 10 3 3 6 10 1 8 1 1 1 1 1 1

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

Source. Capital IQ
 Page 13

TEV/EBITDA (LTM) averages 10.3x: The average multiple for the 36 companies with positive EBITDA (and multiples
under 100x) is 10.3x LTM EBITDA (vs. 11.3x last week), led by Tencent Holdings Ltd. (SEHK:700) at 46.7x (Figure 12).
Sixteen companies have EBITDA multiples under 7x. The median multiple is 8.4x (vs. 8.6x last week).

T E V/L T M E B IT DA (x)

50. 0 46. 7
45. 0

40. 0 37. 2

35. 0

30. 0
25. 8 26. 4 26. 7
25. 0 22. 4

20. 0 17. 4
13. 2 13. 8
15. 0 11.9 12.5 12. 8 12. 9
A verage, 10. 3 10. 5 10. 8 10.8 11.3
8. 8
10. 0 7. 7 8. 0
5. 9 6. 2 6. 7
4. 3 4. 5 4. 6 5. 2 5. 4 5. 5
5. 0 2. 7 3. 2 4. 0
0. 4 0. 5 0. 8 1. 0
0. 0

NE O WIZ G ames C orporation

J umbuck E ntertainment L imited

G ungH o O nline E ntertainment, Inc .

G amania Digital E ntertainment C o. , Ltd.

P NI Digital Media Inc .

C hines e G amer International

U nis erve C ommunications C orp.

O AO R B C Information S y s tems

C hangy ou. c om L imited

T ree. C om, Inc .

C DC C orp.

S K C ommunic ations C o. , Ltd.

Modern T imes G roup Mtg AB
T heS treet. c om, Inc .

S NAP Interac tive, Inc .

U nited O nline Inc .

O pen T ex t C orp.
AQ Interac tive, Inc .

S park Network s , Inc .

C yberplex Inc.

NetDragon WebS oft, Inc.

V alueC lic k Inc .

S ohu. c om Inc .

Y D O nline C orp.

IAC /InterAc tiveC orp.

G ree, Inc .

Mix i, 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.

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 3.2x. On a geographic basis, the
United States has the most companies (38), trading at an average of 6.6x EBITDA (Figure 14). Ten of the companies are
Canadian (average 13.5x EBITDA).

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

20.0
35.0 29.8 18.8
18.0
30.0
16.0
16.9
25.0 14.0
20.0 21.6 12.0 13.5 13.1 12.9 12.5
(x)

16.9 11.9
(x)

15.0 14.8 10.0 11.3

13.1 12.9 11.9
8.2 8.0 6.6
10.0 6.2 5.9
4.6 4.5 4.1 3.2 1.0 6.0 6.2
5.0 0.4 4.0
0.0 1.0
2.0
GTSM

NasdaqGM

OTCBB
SEHK

TSE

KOSE

OM

NasdaqGS

CM

OSE

RTS
XTRA

TSX

AMEX
TSXV

ASX

0.0 0.4
Germany
Canada

China

Japan

United

Russia
Hong

Italy
South
Korea

Kong

States
Taiwan

Australia
Sweden

# Companies 4 3 2 5 6 1 3 14 1 1 4 2 5 18 2 1
# Companies 10 3 10 8 1 6 3 1 38 1 2 1

Figures 13 & 14. TEV/EBITDA Ranking (Exchange, Country)

Source. Capital IQ
 Page 14

P/E (LTM) averages 21.5x: The average multiple for the 33 companies with positive earnings (and multiples under 100x)
is 21.5x LTM EPS (vs. 20.8x last week), led by HabitSoft, Inc. (KOSE:A047080) with a 71.3x multiple (Figure 15). Thirteen
companies have P/E multiples under 10x. The median is 14.3x.

P /E L T M (x)

80.0
71.3
70.0 67.6
63.3
60.0
60.0

48.3
50.0
40.6
40.0 37.1 37.6
33.8 34.0

30.0
23.5
A verage, 21.5 21.8
18.0
20.0 16.2 16.8 17.5
14.3
11.5 12.3
9.3 10.7
10.0 6.7 7.1 8.3
3.9 5.4
1.8 2.1 2.3 2.6 2.7
0.0 0.0
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 iant Interactive G roup, Inc.

G ameO n C o Ltd.

Modern T imes G roup Mtg AB

G ravity 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.

Y D O nline C orp.

IAC /InterActiveC orp.

S ohu.com Inc.

NetDragon W ebS oft, Inc.

S park Network s , Inc.

G ree, Inc.

T encent H oldings Ltd.

Mix i, Inc.
XING AG
W ebz en Inc.

P erfect World C o., Ltd.

LiveW orld Inc.

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 18.0x. On a geographic basis, the United States has
the most companies (38), trading at an average of 27.0x earnings (Figure 17). Ten of the companies are Canadian
(average 27.5x EPS).

Average P/E - By Exchange Average P/E - By Country

40.0 37.3
70.0
63.3
35.0
60.0
30.0
50.0 34.0
37.4 37.1 35.8 25.0 27.5 27.0
40.0
(x)

34.0 23.8
(x)

30.0 30.6 28.7 20.0 21.9

20.0 18.0 16.8 16.2 15.0 16.8

11.2 6.7 12.7
10.0 5.4 10.0
3.9 5.4
3.9
0.0 1.8 0.0 5.0
OTCPK

OTCBB
GTSM

NasdaqGM
TSE

OSE

KOSE

SEHK

NasdaqGS
OM
XTRA

AMEX

TSX

KLSE

NYSE
ASX

0.0
Germany
Japan

Canada

United

China

Malaysia
South
Korea
States

Taiwan

Australia
Sweden

# Companies 11 5 1 6 3 3 2 18 1 2 14 4 1 2 1 5
# Companies 6 3 10 38 8 3 1 10 1 2

Figures 16 & 17. P/E Ranking (Exchange, Country)

Source. Capital IQ
 Page 15

UPCOMING EVENTS

E arnings C alendar
C ompany Date Time Quarter C onf C all Details
PNI Digital Media Inc. (TSXV:PN) 14-Dec-09 4:30 p.m. EST Q4/09 888-300-8196
Figure 18. Earnings Calendar
Source. Company reports
 Page 16

C omparable C ompany Analys is > Web 2.0

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 15.8 0.55 0. 0% -21.4% -3.5% 5. 8% 37.5% -31.3%
A ctoz S oft C o. , L td. KR W A052790 K OS E 151.1 20, 800 -4.8% 35.1% 18.9% -24.6% 109. 0% -42.2%
A Q Interactive, Inc. JPY 3838 TS E 24.7 40, 550 0. 2% -11.5% -27.6% -41.7% 35.2% -51.1%
A s knet AG E UR XT R A :A5A XT R A 26.5 4 -0.6% 8.8% 10.5% 30.5% -16. 5% -21.1%
A s s ociated Media H oldings Inc. US D AS MH OT C P K 32.9 0.76 8344.4% 5328. 6% 5328. 6% 50566. 7% 25233.3% 0.0%
B igs tring C orp. US D BSGC OT C B B 1.8 0.03 -6.7% -17.6% -6.7% -3.4% 64.7% -50.9%
B eta wave C orpora tion US D B W AV OT C B B 2.5 0.09 6. 3% 112.5% 21.4% 6. 3% -46. 9% -66.0%
B eyond C ommerce, Inc. US D B Y OC OT C B B 2.7 0.05 4. 3% -31.4% -76.0% -94.9% -94. 7% -97.4%
B right T hings plc GB P AIM:B G T A IM 5.3 0.01 0. 0% -10.9% -10.9% -6.5% 2.1% -50.4%
B roadW ebA s ia Inc. US D BWBA OT C P K 4.2 0.05 -44.4% 66.7% -78.3% -83.2% -95. 0% -98.3%
C DC C orp. US D C H IN.A Nas da qG S 257.5 2.43 2. 1% -4.0% 4.3% 57.8% 129. 2% -38.0%
C ha ngyou.com Limited US D C Y OU Nas da qG S 1, 704.5 30.99 -4.6% -0.8% -24.7% -29.4% NM -35.9%
C hina G a tewa y C orporation US D CGWY OT C P K 0.2 0.01 350.0% 350.0% -40.0% 350.0% 350. 0% -70.0%
C hines e G a mer International TWD G T S M:3083 GTS M 1, 103.5 425.50 -3.3% -5.2% -4.4% 34.2% 393. 6% -18.0%
C LIC K E R Inc. US D CLK Z OT C B B 0.5 0.01 -18.8% -18.8% -13.3% 71.1% -90. 7% -95.0%
C ornerW orld C orpora tion US D CW R L OT C B B 2.9 0.03 0. 0% -50.0% -50.0% -57.1% -93. 6% -93.6%
C yberplex Inc. C AD T S X: C X TS X 74.1 1.17 -4.1% -14.6% -10.0% -35.4% 239. 1% -41.2%
DADA S pA E UR C M:DA CM 149.0 6.28 0. 0% -11.0% -0.4% 3. 0% -8.7% -23.4%
DXN Holdings B hd MY R DXN K LS E 36.9 0.57 -0.9% -11.0% -0.9% 41.3% 48.7% -18.1%
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 4.6 0.05 0. 0% 17.8% -3.6% 231.3% 112. 0% -46.5%
DigitalT own, Inc. US D DG T W OT C B B 38.3 1.40 0. 0% 38.6% -20.0% -44.0% -53. 3% -60.0%
Dolphin Digital Media, Inc. US D DP DM OT C B B 15.4 0.27 -10.0% -32.5% -40.0% -50.9% -66. 3% -66.3%
E olith C o. L td. KR W A041060 K OS E 66.8 540.00 -3.6% -5.3% -44.6% -28.9% -6.1% -53.4%
E xtens ions , Inc. US D E XT I OT C P K 13.3 0.30 20.0% -14.3% 275.0% 100.0% 471. 4% -70.3%
F luid Mus ic C anada, Inc. C AD T S X: F MN TS X 104.4 1.80 -10.0% -2.7% 47.5% 153.5% 718. 2% -16.3%
F rogs ter Intera ctive P ictures AG E UR FR G XT R A 70.4 18.75 5. 6% -0.7% -1.3% 140.4% 309. 4% -12.8%
G amania Digita l E ntertainment C o., L td. TWD 6180 GTS M 222.9 47.10 1. 4% 3.5% -3.7% -10.8% 210. 9% -31.5%
G ameO n C o L td. JPY 3812 TS E 70.8 65, 500 5. 0% -10.2% -34.9% -39.4% -48. 0% -56.9%
G eoS entric Oyj E UR G E O1V H LS E 65.8 0.05 25.0% -16.7% 0.0% 0. 0% 66.7% -16.7%
G ia nt Interactive G roup, Inc. US D GA NY S E 1, 628.3 7.19 2. 3% 0.8% -6.7% -19.7% 20.4% -24.9%
G igaMedia L td. US D G IG M Nas da qG S 210.4 3.86 -4.0% 1.8% -20.1% -31.2% -33. 1% -50.1%
G ra vity C o., Ltd US D GR VY Nas da qG M 40.6 1.46 -2.7% -5.2% -18.9% 27.0% 151. 7% -44.5%
G ree, Inc. JPY T S E :3632 TS E 2, 222.9 4, 440 -3.5% -19.0% 9.4% 43.2% NM -22.2%
G ungH o Online E ntertainment, Inc. JPY 3765 OS E 197.3 154, 000 8. 2% -26.9% -35.8% -38.3% 57.0% -45.0%
H anbitS oft, Inc. KR W A047080 K OS E 71.6 3, 900 6. 3% 11.1% -2.5% -17.6% 23.4% -41.3%
IAC /InterA ctiveC orp. US D IA C I Nas da qG S 2, 507.4 19.00 -2.3% -1.4% 0.1% 13.5% 14.9% -10.7%
IAS E nergy, Inc. US D IA S A. E OT C B B 7.8 0.11 -7.6% 5.7% -7.5% -57.3% 270. 0% -60.4%
is eemedia Inc. C AD IE E T S XV 9.2 0.19 -2.6% 0.0% 216.7% 111.1% 322. 2% -29.6%
J umbuck E ntertainment Limited AU D AS X: J MB AS X 13.6 0.32 -3.0% -5.9% -20.0% -23.8% -27. 3% -36.0%
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% -99.4%
K ings oft C o. L td. HK D 3888 S E HK 796.9 5.65 -2.6% -22.7% -36.7% 2. 7% 110. 0% -40.3%
L ingo Media C orpora tion C AD T S XV :LM T S XV 11.0 0.96 -3.0% 1.1% -4.0% -5.0% -4.0% -32.9%
L iveW orld Inc. US D LV W D OT C P K 1.0 0.03 0. 0% -3.1% -38.0% -63.5% 106. 7% -87.6%
L ookS mart, L td. US D LO OK Nas da qG M 18.3 1.07 2. 9% -10.1% -10.2% -15.1% -31. 8% -40.0%
Ma gnitude Information S ys tems Inc. US D MAG Y OT C B B 10.2 0.02 -4.2% 155.6% 155.6% 130.0% 0.0% -41.0%
Mixi, Inc. JPY 2121 TS E 1, 351.0 784,000.00 12.0% 11.8% 45.7% 77.0% 33.8% -4.6%
Modern T imes G roup Mtg AB SEK MT G B OM 3, 119.2 329.60 6. 3% 3.7% 10.2% 51.5% 119. 7% -3.1%
MO K O .mobi L imited AU D MK B AS X 12.5 0.14 12.5% 50.0% 80.0% 104.5% 743. 8% 0.0%
Myriad G roup AG C HF MY R N S WX 207.5 4.84 -0.2% -0.2% 7.6% -3.2% -22. 6% -28.0%
NE O W IZ G ames C orporation KR W A095660 K OS E 780.8 44,200.00 4. 6% 15.6% 14.5% 31.0% 355. 7% -1.6%
NetDra gon W ebS oft, Inc. HK D 777 S E HK 295.3 4.33 -2.0% -14.4% -26.4% -16.4% 47.8% -39.4%
Netea s e. com Inc. US D NT E S Nas da qG S 4, 818.6 37.23 -2.6% -8.5% -15.8% -2.3% 91.0% -23.2%
NeuLion Incorpora ted C AD T S X: NL N TS X 74.9 0.70 -12.5% -1.4% -36.4% -6.7% 133. 3% -46.2%
NeXplore C orpora tion US D NXP C OT C P K 37.9 0.68 -8.1% -9.3% 23.6% 17.2% -32. 7% -46.9%
Ngi G roup Inc. JPY 2497 TS E 33.4 24,140.00 8. 7% -9.1% -13.2% -26.2% -51. 2% -59.7%
Northgate T echnologies Limited INR 590057 BSE 22.2 30.55 -5.3% 2.9% -35.7% -37.6% -38. 5% -59.0%
O pen T ext C orp. US D OT E X Nas da qG S 2, 211.3 39.22 3. 0% 3.0% 10.2% 8. 9% 44.6% -5.4%
O penwa ve S ys tems Inc. US D OP W V Nas da qG S 187.1 2.24 -5.1% 8.2% -17.6% 12.0% 307. 3% -28.4%
P erfect W orld C o., Ltd. US D PWRD Nas da qG S 2, 157.0 43.35 -1.8% -7.2% 3.1% 84.5% 157. 7% -14.1%
P NI Digital Media Inc. C AD T S XV :P N T S XV 53.8 1.71 3. 6% -5.0% 1.8% 3. 0% 15.5% -19.7%
Q uepa s a C orp. US D QP S A OT C B B 21.6 1.70 22.3% 21.4% 21.4% 126.7% -14. 6% -25.1%
O AO R B C Information S ys tems US D R BCI R TS 222.0 1.60 0. 0% 6.7% 52.4% 62.4% 6.7% -5.9%
S ha nda Interactive E nterta inment L td. US D S NDA Nas da qG S 3, 473.1 51.64 3. 6% 8.4% 7.7% -18.4% 84.3% -20.6%
S hutterfly, Inc. US D S F LY Nas da qG S 404.6 15.76 9. 9% 2.4% 21.0% 16.2% 104. 4% -13.1%
S K C ommunications C o. , L td. KR W A066270 K OS E 335.1 9,550.00 26.7% 31.5% 7.8% -18.0% 93.5% -25.7%
S NA P Intera ctive, Inc. US D S TVI OT C B B 3.3 0.30 50.0% 42.9% -40.0% -60.0% -53. 8% -72.2%
S NM G loba l H oldings US D S NMN OT C P K 0.0 0.00 -50.0% -33.3% -52.4% -50.0% -97. 1% -97.1%
S ocial Media V entures Inc. US D S MV I OT C P K 0.0 0.01 -37.5% -42.3% -93.2% -25.0% -99. 3% -99.9%
S ocialwis e, Inc. US D S CLW OT C B B 23.4 0.50 2. 0% -10.7% -15.3% -29.6% -63. 0% -66.7%
S ohu.com Inc. US D S O HU Nas da qG S 2, 012.8 52.34 -6.1% -5.8% -17.6% -24.4% 19.6% -27.6%
S pa rk Networks , Inc. US D LO V A ME X 48.8 2.37 -0.7% -8.8% 7.2% 5. 8% -13. 8% -21.0%
S pectrumDNA, Inc. US D S P XA OT C B B 6.8 0.14 0. 0% -6.7% -36.4% -62.2% -33. 3% -68.9%
T encent H oldings Ltd. HK D 700 S E HK 34,567. 1 147 2. 9% 6.3% 14.7% 65.1% 215. 3% -3.7%
T he P a rent C ompany US D K IDS . Q OT C P K 0.2 0.01 0. 0% 0.0% -36.4% -60.0% -98. 9% -99.1%
T he9 L imited US D NC T Y Nas da qG S 187.8 7.48 -0.9% -5.8% -4.3% -35.5% -38. 6% -55.0%
T heS treet.com, Inc. US D TS CM Nas da qG M 69.8 2.28 -2.1% -8.1% -6.2% 15.2% -32. 7% -39.0%
T ree.C om, Inc. US D TR E E Nas da qG M 78.8 7.23 12.1% -11.0% -4.5% -25.8% 338. 2% -44.7%
U nis erve C ommunica tions C orp. C AD T S XV :US S T S XV 0.9 0.04 0. 0% -20.0% -11.1% -20.0% 33.3% -60.0%
U nited O nline Inc. US D UNT D Nas da qG S 592.1 7.00 2. 9% -17.8% -5.9% 4. 2% 14.0% -26.0%
U OMO Media, Inc US D UO MO OT C B B 5.2 0.06 0. 0% -20.0% -57.1% -67.6% -50. 0% -94.3%
V alueC lick Inc. US D V CLK Nas da qG S 859.2 10.03 6. 4% -2.4% -4.4% -17.5% 40.3% -28.0%
V OIS , Inc. US D V O IS OT C B B 9.9 0.01 -0.8% -15.0% 138.0% 240.0% 296. 7% -48.3%
W ebzen Inc. US D W ZE N Nas da qG M 35.6 3.00 10.3% -4.8% 0.3% -21.6% 275. 0% -35.9%
W izzard S oftwa re C orporation US D W ZE A ME X 20.3 0.38 -15.6% -17.4% -22.4% -41.5% -59. 1% -63.1%
W orlds .com Inc. US D W DDD OT C B B 5.4 0.10 0. 0% 11.1% -16.7% 11.1% -54. 5% -56.5%
W ynds torm C orpora tion US D W Y ND OT C P K 0.7 0.04 -60.0% -60.0% -60.0% -92.2% -66. 7% -92.2%
XING A G E UR O1B C XT R A 257.9 33.40 1. 5% 0.6% 3.6% -0.3% 24.6% -12.1%
Y D Online C orp. KR W A052770 K OS E 88.0 7,000.00 14.4% 0.6% -21.8% -24.7% 11.6% -43.5%
Y nk K orea Inc. KR W A023770 K OS E 16.5 3,695.00 0. 0% -7.9% -20.5% -44.6% -26. 7% -57.5%
H igh 8344.4% 5328. 6% 5328. 6% 50566. 7% 25233.3% 0.0%
L ow -60.0% -99.2% -99.2% -98.6% -99. 4% -99.9%
Average 785.8 95.7% 62.1% 56.8% 569.1% 356.3% -44.0%
Media n 0. 0% -5.0% -6.0% -6.6% 20.0% -41.1%

Figure 19. Price Performance

Source. Capital IQ
 Page 17

C omparable C ompany Analys is > Web 2.0

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 15.8 5.0x - - - - - -
Actoz S oft C o., Ltd. G aming S outh K orea K OS E A052790 151.1 1.0x - 4. 3x - 21.8x - 2.3x
AQ Intera ctive, Inc. G aming J apan TS E 3838 24.7 0.0x - 0. 5x - - - 0.4x
As knet A G G aming G erma ny XT R A XT R A :A5A 26.5 0.2x - - - - - -
As s ocia ted Media Holdings Inc. Mobile U nited S ta tes OTCP K AS MH 32.9 - - - - - - -
B igs tring C orp. Ins ta nt Mes s aging U nited S ta tes OTCB B BSGC 1.8 44.4x - - - - - -
B etawave C orpora tion Media U nited S ta tes OTCB B B W AV 2.5 - - - - - - 1.7x
B eyond C ommerce, Inc. S ocial Networking U nited S ta tes OTCB B B YOC 2.7 1.1x - - - - - -
B right T hings plc S ocial Networking U nited K ingdom AIM AIM:B G T 5.3 - - - - - - -
B roadW ebAs ia Inc. S ocial Networking U nited S ta tes OTCP K BWBA 4.2 - - - - - - -
C DC C orp. G aming H ong K ong N as da qG S C HIN.A 257.5 0.7x 0.7x 11.3x 5.4x - 93.5x 10.9x
C hangyou.com Limited G aming C hina N as da qG S C Y OU 1,704.5 5.5x 4.5x 8. 8x 7.0x 11.5x 9.9x 8.9x
C hina G atewa y C orpora tion Mobile U nited S ta tes OTCP K CGW Y 0.2 0.0x - - - - - -
C hines e G amer Interna tional G aming T a iwa n GTS M G T S M:3083 1,103.5 15.0x 15.3x 25.8x 24.8x 33.8x 21.1x 16.2x
C L IC K E R Inc. Direct Marketing U nited S ta tes OTCB B C LK Z 0.5 0.2x - - - - - -
C ornerW orld C orporation C ontent U nited S ta tes OTCB B CW R L 2.9 1.9x - - - - - -
C yberplex Inc. A dvertis ing C ana da TS X T S X: C X 74.1 0.5x 0.4x 4. 6x 3.7x 6.7x 7.0x 2.7x
DA DA S pA S ocial Networking Italy CM C M:DA 149.0 0.8x 0.8x 6. 2x 5.8x - 18.4x -
DXN Holdings B hd S ocial Networking Mala ys ia K LS E DXN 36.9 0.6x - - - 5.4x - 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 4.6 5.7x - - - - - -
DigitalT own, Inc. S ocial Networking U nited S ta tes OTCB B DG T W 38.3 - - - - - - -
Dolphin Digital Media, Inc. S ocial Networking U nited S ta tes OTCB B DP DM 15.4 - 1.1x - - - 1.1x -
E olith C o. L td. G aming S outh K orea K OS E A041060 66.8 4.5x - - - - - 3.0x
E xtens ions , Inc. C ontent U nited S ta tes OTCP K E XT I 13.3 - - - - - - -
F luid Mus ic C a nada, Inc. Media U nited S ta tes TS X T S X:F MN 104.4 18.2x 18.1x - - - - 7.8x
F rogs ter Interactive P ictures A G G aming G erma ny XT R A FR G 70.4 7.2x - - - - - 8.6x
G amania Digital E ntertainment C o., Ltd. G aming T a iwa n GTS M 6180 222.9 1.3x - 8. 0x - 23.5x - 2.8x
G ameO n C o Ltd. G aming J apan TS E 3812 70.8 - - - - 7.1x 7.3x 0.8x
G eoS entric Oyj Mobile F inland H LS E G E O1V 65.8 14.8x - - - - - -
G iant Interactive G roup, Inc. G aming C hina NY S E GA 1,628.3 - - - - 1.8x 15.2x 0.3x
G igaMedia Ltd. G aming T a iwa n N as da qG S G IG M 210.4 0.7x 0.7x - 3.6x 8.3x 8.2x 1.8x
G ravity C o., Ltd G aming S outh K orea N as da qG M GR VY 40.6 - - - - 0.0x - 0.0x
G ree, Inc. S ocial Networking J apan TS E T S E : 3632 2,222.9 10.1x 5.9x 17.4x 10.5x 37.6x 21.0x 17.8x
G ungH o O nline E nterta inment, Inc. Media J apan OS E 3765 197.3 1.3x 1.2x 5. 9x - 37.1x 13.3x 6.1x
Ha nbitS oft, Inc. G aming S outh K orea K OS E A047080 71.6 1.0x - - - 71.3x - 2.0x
IAC /InterActiveC orp. Media U nited S ta tes N as da qG S IAC I 2,507.4 0.6x 0.6x 10.5x 4.4x 10.7x 27.8x 1.2x
IAS E nergy, Inc. V ideo C ana da OTCB B IAS A.E 7.8 - - - - - - -
is eemedia Inc. C ontent C ana da T S XV IE E 9.2 5.3x - - - - - -
J umbuck E ntertainment Limited S ocial Networking Aus tra lia AS X AS X:J MB 13.6 0.4x 0.4x 1. 0x 1.1x 3.9x 2.8x 1.3x
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 796.9 5.1x 4.3x 12.8x 8.9x 17.5x 12.5x 4.2x
Lingo Media C orpora tion L earning C ana da T S XV T S XV : LM 11.0 8.1x - - - - - -
LiveW orld Inc. S ocial Networking U nited S ta tes OTCP K LV W D 1.0 - - - - 63.3x - 0.4x
LookS ma rt, L td. Direct Marketing U nited S ta tes N as da qG M L OOK 18.3 - - - - - - 0.7x
Magnitude Information S ys tems Inc. S ocial Networking U nited S ta tes OTCB B MA G Y 10.2 - - - - - - -
Mixi, Inc. S ocial Networking J apan TS E 2121 1,351.0 8.7x 7.1x 26.4x 21.8x 67.6x 51.2x 8.7x
Modern T imes G roup Mtg AB Media S weden OM MT G B 3,119.2 1.8x 1.8x 12.9x 12.6x 16.8x 15.0x -
MOK O .mobi Limited S ocial Networking Aus tra lia AS X MK B 12.5 16.6x - - - - - 12.8x
Myriad G roup AG Mobile S witzerla nd SWX MY R N 207.5 3.2x - - - - - -
NE OW IZ G ames C orporation G aming S outh K orea K OS E A095660 780.8 3.7x 2.8x 13.8x 9.7x 40.6x 13.9x 20.6x
NetDra gon W ebS oft, Inc. G aming C hina S E HK 777 295.3 1.6x - 5. 2x - 14.3x - 1.6x
Netea s e.com Inc. G aming C hina N as da qG S NT E S 4,818.6 - - - - 2.6x 14.0x 0.7x
NeuLion Incorporated V ideo C ana da TS X T S X:NL N 74.9 2.5x - - - - - 10.4x
NeXplore C orporation C ontent U nited S ta tes OTCP K NXP C 37.9 24.6x - - - - - -
Ngi G roup Inc. Media J apan TS E 2497 33.4 - - - - - - 0.6x
Northgate T echnologies Limited Direct Marketing India BS E 590057 22.2 0.5x - - - - 1.2x -
O pen T ext C orp. C ollabora tion C ana da N as da qG S OT E X 2,211.3 2.8x 2.5x 10.8x 9.0x 48.3x 13.1x -
O penwave S ys tems Inc. Mobile U nited S ta tes N as da qG S OP W V 187.1 0.4x 0.4x 13.2x 4.1x - 31.5x 2.6x
P erfect W orld C o., Ltd. G aming C hina N as da qG S PWRD 2,157.0 0.5x 2.4x 0. 8x 4.6x 2.7x 12.6x 1.2x
P N I Digital Media Inc. Digita l Ima ging C ana da T S XV T S XV :P N 53.8 2.5x 2.1x 22.4x 6.7x - 13.7x 18.8x
Q uepa s a C orp. S ocial Networking U nited S ta tes OTCB B QP S A 21.6 - - - - - - -
O AO R B C Information S ys tems Media R us s ia R TS R BCI 222.0 0.0x 1.0x 0. 4x 5.7x - 6.5x -
S handa Interactive E nterta inment Ltd. G aming C hina N as da qG S S NDA 3,473.1 - - - - 2.3x 14.6x 0.4x
S hutterfly, Inc. Digita l Ima ging U nited S ta tes N as da qG S S FLY 404.6 1.3x 1.2x 10.8x 6.2x - 93.3x 2.4x
S K C ommunications C o., Ltd. S earch S outh K orea K OS E A066270 335.1 1.7x - 26.7x - - - -
S N AP Interactive, Inc. Dating U nited S ta tes OTCB B S TVI 3.3 0.5x - 3. 2x - 18.0x - 1.7x
S N M G lobal Holdings Media U nited S ta tes OTCP K S NMN 0.0 1.1x - - - - - -
S ocial Media V entures 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 23.4 - - - - - - -
S ohu.com Inc. G aming C hina N as da qG S S O HU 2,012.8 2.9x 2.5x 6. 7x 5.7x 12.3x 14.1x 3.6x
S park N etworks , Inc. S ocial Networking U nited S ta tes AME X L OV 48.8 0.9x - 4. 5x - 16.2x - 22.0x
S pectrumDN A, Inc. Media U nited S ta tes OTCB B S P XA 6.8 48.7x - - - - - -
T encent Holdings Ltd. P orta l C hina S E HK 700 34,567.1 23.9x 15.8x 46.7x 30.7x 60.0x 40.3x 26.6x
T he P a rent C ompany Media U nited S ta tes OTCP K K IDS .Q 0.2 0.2x 0.2x - 12.8x - - -
T he9 L imited G aming C hina N as da qG S NC T Y 187.8 - - - - 2.1x - 0.1x
T heS treet.com, Inc. Media U nited S ta tes N as da qG M TS CM 69.8 0.1x 0.1x 2. 7x - - - 0.9x
T ree.C om, Inc. P orta l U nited S ta tes N as da qG M TREE 78.8 0.2x 0.2x 5. 5x 6.4x - 90.9x 1.2x
Unis erve C ommunications C orp. S ocial Networking C ana da T S XV T S XV :US S 0.9 0.3x - 37.2x - - - -
United Online Inc. Media U nited S ta tes N as da qG S U NT D 592.1 0.8x 0.9x 4. 0x 3.5x - 5.3x -
UO MO Media, Inc Media C ana da OTCB B UO MO 5.2 7.1x - - - - - -
V a lueC lick Inc. Media U nited S ta tes N as da qG S V CLK 859.2 1.3x 1.3x 5. 4x 5.2x - 16.3x 4.6x
V O IS , Inc. S ocial Networking U nited S ta tes OTCB B V OIS 9.9 - - - - - - 62.6x
W ebzen Inc. G aming S outh K orea N as da qG M W ZE N 35.6 - - - - 0.0x - 0.0x
W izzard S oftware C orporation P odca s ting U nited S ta tes AME X W ZE 20.3 4.2x - - - - - -
W orlds .com Inc. C ontent U nited S ta tes OTCB B W DDD 5.4 - - - - - - -
W ynds torm C orporation C ontent U nited S ta tes OTCP K W Y ND 0.7 - - - - - - -
XIN G AG S ocial Networking G erma ny XT R A O1B C 257.9 3.2x 2.5x 11.9x 6.9x 34.0x 16.6x 7.3x
Y D Online C orp. G aming S outh K orea K OS E A052770 88.0 1.6x 1.4x 7. 7x 6.3x 9.3x 8.9x 2.8x
Y nk K orea Inc. G aming S outh K orea K OS E A023770 16.5 1.3x - 12.5x - - - 0.8x
High 34,567.1 48.7x 18.1x 46.7x 30.7x 71.3x 93.5x 62.6x
Low 0.0 0.0x 0.1x 0. 4x 1.1x 0.0x 1.1x 0.0x
Average 785.8 5.3x 3.2x 11.4x 8.6x 21.5x 22.2x 6.4x
Median 39.5 1.6x 1.3x 8. 4x 6.3x 14.3x 14.0x 2.4x

Figure 20. Valuation Comparison

Source. Capital IQ
 Page 18

C omparable C ompany Analys is > Web 2.0

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 a na da 10 U nited S ta tes 5, 811. 3 S weden 2,974. 2 United S tates 3,887. 3 S weden 304. 6 A us tralia 42. 8%
C hina 10 J a pan 3, 871. 5 J apan 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 aiwan 577. 9 C a na da 1,015. 0 C a na da 200. 0 J apan 24. 2%
J a pa n 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 a iwa n 3 T a iwa n 1, 733. 6 C anada 248. 8 J a pa n 634. 4 S outh K orea 121. 9 Mala ys ia 14. 4%
Aus tralia 2 S outh K orea 1, 527. 4 S outh K orea 190. 9 T a iwa n 385. 8 T a iwa n 59. 8 Italy 13. 1%
G erma ny 2 G ermany 317. 0 Ita ly 165. 4 Hong K ong 361. 6 Ita ly 31. 9 R us s ia 13. 1%
S witzerla nd 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 Ita ly 165. 4 G ermany 158. 5 R us s ia 156. 2 R us s ia 20. 4 Hong K ong 6. 9%
F inla nd 1 R us s ia 160. 9 U nited S ta tes 152. 9 India 82. 8 G erma ny 12. 5 S witzerla nd 1. 9%
Ita ly 1 S witzerla nd 92. 0 S witzerla nd 92. 0 Ma lays ia 77. 1 Ma lays ia 11. 1 C anada -8. 5%
United K ingdom 1 F inland 65. 9 F inland 65. 9 G erma ny 68. 7 Aus tralia 4. 5 G ermany -9. 1%
India 1 Malays ia 39. 8 Malays ia 39. 8 S witzerla nd 40. 0 S witzerla nd 0. 8 U nited S ta tes -21. 9%
S weden 1 India 31. 0 India 31. 0 Aus tralia 17. 8 Norwa y -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%
Ma lays ia 1 U nited K ingdom 6. 0 U nited K ingdom 6. 0 Norwa y 2. 3 F inla nd -17. 5 U nited K ingdom NA
Norwa y 1 Norway 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

C omparable C ompany Analys is > Web 2.0

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 19

Financ ing - L as t Three Months (US $ m)

Fin. Amount (Million) Type of financ ing
Month C ompany Name C ountry Angel/S eed S eries A S eries B S eries C S eries D G rand Total
Oct-09 DailyMotion F ra nce 25. 3 25. 3
P opC ap G ames US A 22. 5 22. 5
E ngine Yard US A 19. 0 19. 0
HubS pot US A 16. 0 16. 0
J ive S oftware US A 12. 0 12. 0
S pigit US A 10. 0 10. 0
Ooyala US A 10. 0 10. 0
S c anS c out US A 8. 5 8. 5
B ox.net US A 7. 1 7. 1
R eality Mobile US A 6. 5 6. 5
W aterc ooler US A 5. 5 5. 5
Vdopia US A 4. 7 4. 7
S ometrics US A 4. 0 4. 0
Amie S treet US A 3. 9 3. 9
ViVu US A 3. 0 3. 0
F izzbac k UK 2. 6 2. 6
Technorati US A 2. 0 2. 0
Onehub US A 1. 3 1. 3
DataS ync US A 1. 2 1. 2
DailyB ooth US A 1. 0 1. 0
Hot P otato US A 1. 0 1. 0
L inkedex UK 1. 0 1. 0
S tatus Net C a na da 0. 9 0. 9
IngB oo US A 0. 8 0. 8
C hango C a na da 0. 7 0. 7
C redit K arma US A 0. 5 0. 5
L is tia US A 0. 4 0. 4
Oct-09 Total 4.5 40.9 56.5 67.4 2.0 171.3

Nov-09 R oc kYou US A 50. 0 50. 0

P laydom US A 43. 0 43. 0
S ezmi US A 25. 0 25. 0
Millennial Media US A 16. 0 16. 0
Zynga US A 15. 0 15. 0
E vernote US A 10. 0 10. 0
C ubeTree US A 8. 0 8. 0
Alice.c om US A 6. 0 6. 0
E ventbrite US A 6. 0 6. 0
P lac ecas t US A 5. 0 5. 0
AppNexus US A 5. 0 5. 0
Altruik US A 4. 7 4. 7
C redit K arma US A 2. 5 2. 5
B lekko US A 2. 5 2. 5
P layfire UK 2. 1 2. 1
S impleG eo US A 1. 5 1. 5
Adfonic UK 0. 6 0. 6
S c oopler US A 0. 5 0. 5
Nov-09 Total 2.6 52.3 29.0 67.0 52.5 203.4

Dec -09 Zoos k US A 30. 0 30. 0

gW allet US A 12. 5 12. 5
Movik Networks US A 8. 5 8. 5
S eekingAlpha Is ra el 7. 0 7. 0
S maato US A 4. 5 4. 5
J anR ain US A 3. 3 3. 3
S toc kTwits US A 3. 0 3. 0
Dec -09 Total 15.8 23.0 30.0 68.8

G rand Total 7.1 109.0 108.5 134.4 84.5 443.4

Figure 23. Financing, Last Three Months

Source. Company reports
 Page 20

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

C ompany HQ Webs ite Des cription
gWallet US A www. gwallet. com gW a llet provides bra nds , publis hers and s ocial media pla tforms with a virtual currency technology for s ocial network s . T he gW allet
monetization platform conta ins three components including Alternative O nline P ayment, V irtual C urrency a nd Aggregation of V irtua l
P roducts . T he platform is a comprehens ive s ys tem tha t has been optimized for F a cebook, O penS ocial platforms (MyS pa ce, Hi5, T a gged,
etc), virtual worlds or webs ites utiliz ing virtual offer-bas ed currency.
J anR ain US A www. janrain. com J anR ain, Inc. provides Internet identity s olutions and s ervices for bus ines s es and cons umers . It offers OpenID, an open s ource s oftware as a
s ervice technology that allows cons umers to us e a s ingle login acros s multiple W ebs ites and regis ter on new s ites with a portable online
identity. Its products include R P X , a n enterpris e-clas s hos ted s olution that helps in accepting and verifying us ers ' third party a ccounts , s uch
a s G oogle, Y ahoo, F acebook, and L iveID; O P X that enables to is s ue a nd manage O penIDs , and build communities with cus tomers in their
own brand; and myOpenID that provides O penID for individuals in the market. T he company has s trategic partners hips with Micros oft,
Y ahoo! , AOL , MyS pace, P laxo, and G oogle. J anR ain, Inc. was founded in 2005 and is bas ed in P ortland, Oregon.
L ala US A www. lala. com L ala is a hub for online mus ic dis covery and purchas ing. Us ers ca n lis ten for free mus ic, adding tracks to their playlis t as they s urf. members
who downloa d a plugin can turn L a la into an online mus ic locker that s yncs their des ktop mus ic libra ries to their L a la account. L ong uploads
a ren’t neces s ary. If L ala already has the s ong in their library, they s imply unlock the file to you online.
Movik Networks US A www. movik. net Movik Network s is headquartered near B os ton, MA and has a n R & D group in B anga lore, India . T he company is focus ed on delivering
purpos e-built s olutions that bring content and application awa renes s to the edge of the mobile network.
S eekingAlpha Is rael www. s eekingalpha .com S eeking Alpha, L td. provides s tock market opinion and a nalys is information from blogs , money ma nagers , and inves tment news letters . T he
company offers daily s umma ry of market and s tock related s tories , conference call tra ns cripts , new IP O filings , and hous ing ma rket roundup.
It als o provides articles from contributors for s tock res earch. T he company s erves money managers , res earch a nalys ts , inves tment bankers ,
a nd individual inves tors . S eeking Alpha, L td. was founded in 2004 and is ba s ed in New Y ork, New Y ork.
S maato US A www. s ma ato. com S maato Inc. , a mobile advertis ing technology company, provides an open mobile advertis ing platform for publis hers , application developers ,
a dvertis ement networks , and mobile operators . It offers S maato O pen Mobile Advertis ing, a n advertis ement exchange platform that brings
international campaigns from various advertis ement networks to the publis hers and developers inventory, as well as enables the delivery of
targeted advertis ing to mobile phones on mobile W ebs ites /widgets within applications a nd in mobile games . T he company’s platform a ls o
a llows mobile carriers to a dvertis ement-enable their s ervices and provides cus tomer relations hips . It has a s trategic partners hip with
MocoS pace. S maato Inc. was founded in 2005 and is bas ed in R edwood S hores , C alifornia with a loca tion in Hamburg, G erma ny.
S tockTwits US A www. s tocktwits . com S tockT wits L L C operates as an online community that provides information about inves tments and s tocks . It provides us ers to give an
opinion about a s pecific s tock s ymbol through a tweet. T he company was incorporated in 2008 and is bas ed in Oak land, C alifornia.
Zoos k US A www. zoos k . com Zoos k, Inc. operates as an online s ocial dating network. T he company was founded in 2007 and is bas ed in S an F rancis co, C alifornia.

Figure 24. Company Descriptions

Source. Company reports, Capital IQ, Crunchbase
 Page 21

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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