Web 2.

0 Weekly
“Strong Week in Web 2.0 M&A”
June 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) – Acquisitions the Key Feature in the Landscape

Google (Nasdaq:GOOG) acquired advertising analytics firm, Invite Media, for a
rumoured US$70 mm.

In the gaming sector, Challenge Games, the virtual goods funded game maker, was
acquired by Zynga for US$20.5 mm.

FetchBack, a post-customer interaction advertising platform, was acquired for US$40
mm by GSI Commerce.

The largest financing in the week outside of acquisitions was US$40 mm raised by
HauteLook, a Los Angeles-based luxury Internet retailer.

Financial Results/Guidance

Shanda Interactive (Nasdaq:SNDA), a Chinese diversified entertainment media
company, reported revenue decline of 16% Y/Y to RMB1,107 mm as the company’s
gaming revenues registered a decline.

2 www.mackieresearch.com
 Public Company Data

3 www.mackieresearch.com
 Aggregate Public Data

Web 2.0 Public Companies Total Median Max Min

# Companies 102 - - -
Market Cap (US$ mm) 78,702.4 66.4 34,512.6 1.4
Revenue (US$ mm) 23,227.2 55.2 3,057.7 0.0
1 Year revenue growth 5.0% 8961.6% -100.0%
EBITDA as % of revenue - 13.3% 63.1% -63.7%
Net cash (US$ mm) 8,902.1 1.8 1,826.4 -670.8
TEV/Revenue - 2.0x 42.8x 0.0x
TEV/EBITDA - 8.5x 48.9x 0.0x
P/E - 16.7x 81.3x 0.0x
Relative to 52 week high -40.7% 0.0% -95.6%

Source: CapitalIQ

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

27
Social Networking

16
Media

10

7
Diversified

6
Marketing

5
Mobile

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
Collaboration

1
Podcasting

1
Learning

1
Video

1
Search

1
Payment

1
Financial Services
Public Company Distribution

0
5
10
15
20
25
30
35
40
45

United States

Canada

China

South Korea

Japan

Taiwan

Germany

Australia

United Kingdom

Hong Kong

Poland

Russia
By Country

Finland

Sweden

Malaysia

India

Italy

Switzerland

Israel
www.mackieresearch.com
 Valuation Dashboard – 1 Week
Market Cap EV/Revenue

Flat
Flat
10%
2%
Rising
35%
Falling
56%

Rising
42%
Falling
55%

EV/EBITDA P/E

Flat Flat
2% 3%

Falling Falling
55% 53%

Rising Rising
43% 44%

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
4/20/2009
4/27/2009
5/4/2009
5/11/2009
5/18/2009
5/25/2009
6/1/2009
6/8/2009
6/15/2009
6/22/2009
6/29/2009
7/6/2009
7/13/2009
7/20/2009
7/27/2009
8/3/2009
Median EV/Revenue

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

Median
10/26/2009
11/2/2009
11/9/2009
11/16/2009
11/23/2009
11/30/2009
12/7/2009
12/14/2009
12/21/2009
12/28/2009

Long-term average
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
down fourth

3/22/2010
3/29/2010
consecutive week
Revenue multiples

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
393940414141414143454646474747484951515150545556616161626666666465667070707073727068717371777378777980818180828183858484

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

# companies
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
30.0x
4/20/2009
4/27/2009
5/4/2009
5/11/2009
5/18/2009
5/25/2009
6/1/2009
6/8/2009
6/15/2009
6/22/2009
6/29/2009
7/6/2009
7/13/2009
7/20/2009
Median EV/EBITDA

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

Median
10/26/2009
11/2/2009
11/9/2009
11/16/2009
11/23/2009
11/30/2009
12/7/2009
12/14/2009
12/21/2009
12/28/2009
1/4/2010

Long-term average
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
below LT average
remain depressed

3/22/2010
3/29/2010
EV/EBITDA multiples

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
2021 2223 23 2222 2224 2326 2324 2426 27 2726 2525 2628 3030 34 3535 3740 3839 3939 4142 39 3941 4342 4143 4443 44 4444 4545 4850 5053 5353 51 5249 5051

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
4/20/2009
4/27/2009
5/4/2009
Median P/E

5/11/2009
5/18/2009
5/25/2009
6/1/2009
6/8/2009
6/15/2009
6/22/2009
6/29/2009
7/6/2009
7/13/2009
7/20/2009
7/27/2009
8/3/2009
8/10/2009
8/17/2009
8/24/2009
8/31/2009
9/7/2009
9/14/2009
9/21/2009
9/28/2009
10/5/2009
10/12/2009
10/19/2009

Median
10/26/2009
11/2/2009
11/9/2009
11/16/2009
11/23/2009
11/30/2009
12/7/2009
12/14/2009
12/21/2009
12/28/2009
1/4/2010

Long-term average
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
below LT average

3/29/2010
P/E multiples also

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
1919 1818 19 1819 1820 2020 1819 1920 21 2425 2424 2526 2827 31 3232 3234 3435 3638 4040 39 4041 4142 3840 4041 38 3835 3333 3235 3536 3535 37 3432 3635

www.mackieresearch.com
 10
-
5.0
10.0
15.0
20.0
25.0

# Companies 2
Infrastructure

2
Music

7
Social Networking

1
Learning

5
Diversified

1
Vertical Communities

4
Mobile

3
SMS/Voice

6
Marketing

Gaming

21
1
Search

1
Collaboration
EV/Revenue

9
Media

3
Advertising

1
Podcasting

1
Video

2
Internet Retail

3
Enterprise

2
Dating

1
Financial Services

1
Virtual World

-
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
Average Valuation – by Sector

# Companies
1
Mobile
2

Enterprise
5

Diversified
2

Internet Retail
6

Media
1

Collaboration
5

Social Networking
EV/EBITDA

Gaming
14
3

Marketing
1

Dating
1

Advertising
www.mackieresearch.com
 11
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
RealNetworks Inc.
GameOn Co Ltd.
Cyberplex Inc.
Actoz Soft Co., Ltd.

Source: CapitalIQ
Openwave Systems Inc.
Jumbuck Entertainment Limited
Tree.Com, Inc.
GigaMedia Ltd.
Glu Mobile, Inc.
Northgate Technologies Limited
Points International Ltd.
DADA SpA
Uniserve Communications Corp.
AOL, Inc.

0.20.2 0.20.30.30.30.4 0.60.60.60.60.6 0.70.70.7

CDC Corp.
United Online, Inc.
IAC/InterActiveCorp.
The New York Times Company
TheStreet.com, Inc.
NetDragon WebSoft, Inc.
Internet Group SA
CornerWorld Corporation
OAO RBC Information Systems
AQ Interactive, Inc.
HanbitSoft, Inc.
infoGROUP, Inc.
EV/Revenue Ranking

Hutchison Telecommunications Hong Kong

SNAP Interactive, Inc.
Oriented Media Group Berhad
NeuLion Incorporated
Gamania Digital Entertainment Co., Ltd. 0.80.80.80.80.8 1.0 1.0 1.0 1.1 1.2 1.3 1.3 1.4 1.4 1.4 1.5 1.5
Spark Networks, Inc.
Shutterfly, Inc.
ValueClick, Inc.
GungHo Online Entertainment, Inc.
Platforma Mediowa Point Group S.A.
Score Media Inc.
UOMO Media, Inc
PNI Digital Media Inc.
Sohu.com Inc.
Modern Times Group Mtg AB
Velti Plc
Webzen Inc.
XING AG
1.7 1.7 1.8 1.9 2.02.0 2.12.12.12.22.2 2.22.2

NEOWIZ Games Corporation

Open Text Corp.
Frogster Interactive Pictures AG
Wizzard Software Corporation
iseemedia Inc.
Unilava Corporation
ePro Ltd.
Myriad Group AG
Kingsoft Corporation Limited
2.62.62.8 2.9 3.03.0 3.13.33.3

Taleo Corp.
Mixi, Inc.
SK Communications Co., Ltd.
revenue multiple at 42.8x
SpectrumDNA has highest

3.53.9 4.1

Changyou.com Limited
WebMediaBrands Inc
Fluid Music Canada, Inc.
4.74.9 5.2

Accelerize New Media, Inc.

5.6

HUGHES Telematics, Inc.

DigitalPost Interactive, Inc.
7.5 7.9

TransGaming, Inc.
Dena Co. Ltd.
Gree, Inc.
Lingo Media Corporation
Chinese Gamer International
9.79.910.010.4

GeoSentric Oyj
Beyond Commerce, Inc.
MOKO.mobi Limited
11.811.912.0

Paid Inc.
12.7

Tencent Holdings Ltd.

18.1

Bright Things plc

31.4

SpectrumDNA, Inc.
32.7

Worlds.com Inc.
42.8

www.mackieresearch.com
 12
0.0
10.0
20.0
30.0
40.0
50.0
60.0
AOL, Inc.

Cyberplex Inc.

2.1 3.1

Source: CapitalIQ
United Online, Inc.

NetDragon WebSoft, Inc.

The New York Times Company

Sohu.com Inc.

3.8 4.4 4.9 4.9

Hutchison Telecommunications Hong Kong Holdings

5.4
Ltd.
CDC Corp.

6.1
ValueClick, Inc.

6.2
Changyou.com Limited

6.5
infoGROUP, Inc.

6.7
Uniserve Communications Corp.
GungHo Online Entertainment, Inc.
EV/EBITDA Ranking

Spark Networks, Inc.

DADA SpA

Kingsoft Corporation Limited

NEOWIZ Games Corporation
6.9 7.3 7.5 7.7 7.8 7.9

PNI Digital Media Inc.

Velti Plc
XING AG

Gamania Digital Entertainment Co., Ltd.

Open Text Corp.

IAC/InterActiveCorp.
8.4 8.5 8.7 8.8 9.3 9.5

Platforma Mediowa Point Group S.A.

Openwave Systems Inc.
10.6 11.3

Score Media Inc.

at 48.9x

Shutterfly, Inc.

HanbitSoft, Inc.
TheStreet.com, Inc.
12.7 12.8 13.2 13.8

Mixi, Inc.
Tree.com leads the group

Modern Times Group Mtg AB

14.6 15.0

Frogster Interactive Pictures AG

Gree, Inc.
16.2 17.3

Chinese Gamer International

20.4

Dena Co. Ltd.

22.5

Taleo Corp.
24.7

Tencent Holdings Ltd.

34.8

SK Communications Co., Ltd.

41.3

Points International Ltd.

46.3

Tree.Com, Inc.
48.9

www.mackieresearch.com
Excluding EV/EBITDA > 100x
 13
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0

Source: CapitalIQ
Uniserve Communications Corp.

4.1
United Online, Inc.

9.2
GameOn Co Ltd.

9.3
Changyou.com Limited
P/E Ranking

AOL, Inc.

DADA SpA

9.5 10.5 11.3

Cyberplex Inc.

Kingsoft Corporation Limited

Sohu.com Inc.

The New York Times Company

ValueClick, Inc.
12.9 13.2 13.5 14.0 14.5

Hutchison Telecommunications Hong Kong Holdings

Ltd.
NEOWIZ Games Corporation

Frogster Interactive Pictures AG

16.7 18.6 18.7

NetDragon WebSoft, Inc.

20.4

Velti Plc

Chinese Gamer International

26.7 27.2

Gamania Digital Entertainment Co., Ltd.

31.6

Gree, Inc.
33.7
Shutterfly has the

Open Text Corp.

40.7
highest P/E at 81.3x

Mixi, Inc.

CDC Corp.

Tencent Holdings Ltd.

infoGROUP, Inc.
45.5 45.8 46.1 46.8

Points International Ltd.

48.0

Dena Co. Ltd.

51.4

HanbitSoft, Inc.
70.6

Actoz Soft Co., Ltd.

73.4

Shutterfly, Inc.
81.3

www.mackieresearch.com
 14
Source: CapitalIQ
(US$m)

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

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
Total Market Capitalization

11/16/2009
11/23/2009
11/30/2009
12/7/2009
12/14/2009
12/21/2009
12/28/2009
1/4/2010
1/11/2010
1/18/2010
1/25/2010
2/1/2010
2/8/2010
2/15/2010
Total market cap above $80 bn

2/22/2010
3/1/2010
3/8/2010
3/15/2010
3/22/2010
3/29/2010
4/5/2010
4/12/2010
4/19/2010
4/26/2010
5/3/2010
5/10/2010
5/17/2010
5/24/2010
5/31/2010
6/7/2010
98 98 98 98 98 98 98 98 98 98 98 98 97 98 98 98 98 99 99 99 99 99100100101101101101101101101101101101101101102102102102102102102102102102102102102102102102

www.mackieresearch.com
 15
-

# 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
45,000.0

8
Diversified

Gaming

28
Media

10
Social Networking

17
1
Collaboration

6
Marketing

3
Enterprise

1
Search

2
Internet Retail

5
Mobile
Total Market Cap – by Sector

3
SMS/Voice

2
Music

2
Dating

1
Financial Services

3
Advertising
2
Virtual World
1

Video
1

Vertical Communities
Eight Diversified companies

Payment
totaling over $37.5 bn in market cap

Infrastructure
1

Learning
1

Podcasting
www.mackieresearch.com
 16
0
1,000
2,000
3,000
4,000
5,000
6,000
UOMO Media, Inc
BroadWebAsia Inc.
CornerWorld Corporation
Mobile Data Corp.

Source: CapitalIQ
Uniserve Communications Corp.
IAS Energy, Inc.
Oriented Media Group Berhad
SpectrumDNA, Inc.
En2Go International, Inc.
Kiwibox.Com, Inc.
SNAP Interactive, Inc.
Bright Things plc
Real Value Estates, Inc.
MOKO.mobi Limited
Beyond Commerce, Inc.
Worlds.com Inc.
DigitalPost Interactive, Inc.
Kent International Holdings Inc.
iseemedia Inc.
Internet Group SA
Jumbuck Entertainment Limited
Northgate Technologies Limited
Dolphin Digital Media, Inc.
Wizzard Software Corporation
Sahara Media Holdings, Inc.
Lingo Media Corporation
Accelerize New Media, Inc.
Asknet AG
VOIS, Inc.
NeXplore Corporation
Unilava Corporation
Socialwise, Inc.
Market Cap Ranking

LookSmart, Ltd.
Multiplied Media Corporation
GeoSentric Oyj
TransGaming, Inc.
Cyberplex Inc.
DigitalTown, Inc.
WebMediaBrands Inc
Glu Mobile, Inc.
ePro Ltd.
Moggle, Inc
NeuLion Incorporated
Ngi Group Inc.
Platforma Mediowa Point Group S.A.
Frogster Interactive Pictures AG
PNI Digital Media Inc.
Quepasa Corp.
Gravity Co., Ltd
Score Media Inc.
DADA SpA
Paid Inc.
HanbitSoft, Inc.
Tree.Com, Inc.
Spark Networks, Inc.
Points International Ltd.
Actoz Soft Co., Ltd.
GameOn Co Ltd.
TheStreet.com, Inc.
HUGHES Telematics, Inc.
AQ Interactive, Inc.
The9 Limited
Fluid Music Canada, Inc.
Webzen Inc.
GigaMedia Ltd.
Openwave Systems Inc.
OAO RBC Information Systems
Myriad Group AG
XING AG
NetDragon WebSoft, Inc.
CDC Corp.
dominates group

GungHo Online Entertainment, Inc.

Velti Plc
Gamania Digital Entertainment Co.,
RealNetworks Inc.
infoGROUP, Inc.
United Online, Inc.
Tencent’s $33 bn market cap

Shutterfly, Inc.
Kingsoft Corporation Limited
Mixi, Inc.
SK Communications Co., Ltd.
NEOWIZ Games Corporation
Chinese Gamer International
ValueClick, Inc.
Taleo Corp.
Hutchison Telecommunications Hong
Perfect World Co., Ltd.
The New York Times Company
Changyou.com Limited
Sohu.com Inc.
Giant Interactive Group, Inc.
AOL, Inc.
Open Text Corp.
IAC/InterActiveCorp.
Shanda Interactive Entertainment Ltd.
Modern Times Group Mtg AB
Gree, Inc.
Netease.com Inc.
Dena Co. Ltd.
Tencent Holdings Ltd.
www.mackieresearch.com
 Price Performance – 1 Week
• Negative momentum returns, with 59%
of stocks falling over the past week. Price Momentum

Rising
Falling 31%
59%

Flat
10%

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

30.0% 26.3%
25.0% Five sectors showed
positive returns
20.0%
15.0%
10.0%
5.1% 4.3%
5.0% 2.7% 1.4%
0.0% 0.0%
0.0%
-0.8% -1.1% -1.3% -1.6%
-5.0%
-4.7% -5.5% -5.9%
-10.0% -6.5% -6.8% -7.5% -7.8%
-10.5%-11.6%
-15.0% -12.1%
-20.0% -16.9%

Internet Retail

Infrastructure
Virtual World

Collaboration

Networking
Financial
Payment
Communities

Advertising

Learning
Music
Dating

Search

Podcasting

Gaming

Diversified

Enterprise

Marketing

Mobile
Services
Media

SMS/Voice
Video

Social
Vertical

Source: CapitalIQ

18 www.mackieresearch.com
 19
-60.0%
-40.0%
-20.0%
0.0%
20.0%
40.0%
60.0%
BWBA
UNLA
TSXV:USS
GEO1V
TSXV:MMC

Source: CapitalIQ
PAYD
MBYL
DPDM
SHHD
BYOC
SPXA
LOOK
TSXV:LM
IEE
2121
NXPC
GTSM:3083
PWRD
GIGM
TSXV:TNG
NYT
2497
RNWK
ACLZ
XTRA:A5A
TSXV:PN
CHIN.A
TSCM
TLEO
QPSA
A095660
TREE
VCLK
DGLP
6180
OPWV
MKB
UNTD
FRG
OTEX
VOIS
NCTY
SFLY
IACI
KOSE:A069080
SOHU
RBCI
HUTC
VEL
Price Performance – 1 Week

3888
590057
WSE:IGR
MTG B
700
WSE:PGM
TSX:NLN
GLUU
A047080
AOL
IUSA
IASC.A
CWRL
RVLU
SCLW
ETGI
TSX:CX
TSX:PTS
UOMO
WZE
KIWB
NTES
A052770
777
O1BC
3812
GA
3765
CM:DA
CYOU
LOV
MYRN
SNDA
A066270
TSX:FMN
A052790
SEHK:215
DGTW
TSE:2432
WEBM
GRVY
OMEDIA
A023770
DB:M0C
SEHK:8086
TSX:SCR
KNTH
TSE:3632
ASX:JMB
3838
WDDD
AIM:BGT
STVI
www.mackieresearch.com
 20
0%
10%
20%
30%
40%
50%
60%
70%

0%
500%
1000%
1500%
2000%
2500%
Sahara
OAO RBC Media
Information Holdings,
Systems Inc.

Velti Plc
ePro Ltd.

Source: CapitalIQ
AQ Interactive, ePro Ltd.
Inc.

Beyond
SNAP Commerce,
Interactive, Inc. Inc.

Beyond
Mobile Data
Commerce, Inc. Corp.

6 Month
1 Month

Velti Plc Gree, Inc.

Uniserve Worlds.com
Communications Inc.
Corp.

ValueClick,
Quepasa Corp. Inc.

SK Bright
Communications
Things plc
Co., Ltd.

Myriad
Score Media Inc.
Group AG
Price Performance (Top 10)

0%
50%
100%
150%
200%
250%
300%
350%
400%

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

OAO RBC
Beyond
Information
Commerce, Inc.
Systems

ePro Ltd. ePro Ltd.

Quepasa
LookSmart, Ltd.
Corp.

DigitalPost SK
Interactive, Communications
Inc. Co., Ltd.

Dena Co. Ltd. Velti Plc

1 Year
3 Month

Velti Plc DigitalTown, Inc.

Fluid Music Sahara Media

Canada, Inc. Holdings, Inc.

TransGaming,
Dena Co. Ltd.
Inc.

VOIS, Inc. Glu Mobile, Inc.

AQ
Interactive, Gree, Inc.
Inc.
www.mackieresearch.com
 21
-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%
Beyond
Unilava
Commerce, Inc.
Corporation

Sahara Media
Actoz Soft

Source: CapitalIQ
Holdings, Inc.
Co., Ltd.

Dolphin Digital
Cyberplex Inc. Media, Inc.

MOKO.mobi Mobile Data

Limited Corp.

Mixi, Inc. Paid Inc.

1 Week

6 Month
Kiwibox.Com, Multiplied Media
Inc. Corporation

CornerWorld
GeoSentric Oyj
Corporation

En2Go Uniserve
International, Communications
Inc. Corp.

UOMO Media, Unilava

Inc Corporation

BroadWebAsia BroadWebAsia
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%

Wizzard NeuLion
Software Incorporated
Corporation

Dolphin Digital
Cyberplex Inc. Media, Inc.

SpectrumDNA, Mixi, Inc.

Inc.

SpectrumDNA,
IAS Energy,
Inc.
Inc.

GungHo Online
CornerWorld Entertainment,
Corporation Inc.
1 Year
1 Month

Sahara Media Ngi Group Inc.

Holdings, Inc.

Beyond Unilava
Commerce, Corporation
Inc.

En2Go
BroadWebAsia
International, Inc.
Inc.

UOMO Media, CornerWorld

Inc Corporation

BroadWebAsia IAS Energy,

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

22 www.mackieresearch.com
 Financing Activity – Current Month
Month Company Name Country Sector Acquisition Angel/Seed Debt financing Series A Series B Series C Series D NA Grand Total
Jun-10 Invite Media USA Analytics 70.0 70.0
FetchBack USA Advertising 40.0 40.0
HauteLook USA Internet Retail 31.0 31.0
Challenge Games USA Gaming 20.5 20.5
Marin Software USA Advertising 11.2 11.2
BookRenter USA Social Commerce 10.0 10.0
RockYou USA Widget 10.0 10.0
Transpera USA Mobile Ad 7.0 7.0
Kudzu Interactive USA Financial Services 7.0 7.0
Curse USA Social Networks 6.0 6.0
Metacafe USA Video 5.0 5.0
LucidMedia USA Advertising 4.5 4.5
Giiv USA Social Commerce 3.4 3.4
Trefis USA Analytics 3.2 3.2
Metamarkets USA Advertising 2.5 2.5
Snaptic USA Mobile 2.3 2.3
WOWIO USA Internet Retail 1.7 1.7
Dilithium Networks USA Video 1.5 1.5
Schoology USA Online Learning 1.3 1.3
SoGeo Netherlands Location-based SNS 0.8 0.8
Rummble UK Location-based SNS 0.8 0.8
Jun-10 Total 130.5 4.8 1.5 10.3 17.0 38.0 25.7 11.8 239.6

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

Social Social
Commerce Other Commerce
Gaming 6% 17% 9%
9%
Gaming
5%

Internet Retail
Internet Retail 9%
14%
Other
45%

Analytics Advertising
30% 18%

Advertising
24%
Analytics
14%

24 www.mackieresearch.com
 Financing Activity

1000.0
Strong start to June with ~40% of the 16.0
roughly US$260 mm monthly total
14.3
900.0 deal value average already achieved
14.0

800.0 12.2
12.0
700.0 10.3
10.1
10.0
600.0 8.9
(US$m)

(US$m)
7.8
500.0 8.0
6.4 6.6
400.0 5.8 5.9 5.7
5.4 6.0
4.7
300.0
4.0
200.0

2.0
100.0

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

*Dec-09 includes $180m Zynga investment

Apr-10 includes $300m DST investment
Total Average

25 www.mackieresearch.com
 26
(US$m)

0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0

# companies
1
Diversified

Gaming

11
5
Collaboration

9
Mobile

6
Media
Social

8
Commerce
Crowdsourced

2
Content
Advertising

14
8
the past quarter

Video
area of interest in
Gaming the biggest

Analytics

12
5
Internet Retail
Social

8
Networks
Financial

5
Services

2
Widget

4
Enterprise
Vertical

8
Communities

4
Virtual World

3
Infrastructure
Mobile

1
Payment
2
Mobile Ad
Online
2

Learning
2

Music
1

Virtual Goods
1

Aggregation
3

Search
1

Classified
Location-
4

based SNS
1

Microblog
1

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

Blog
2

Travel
www.mackieresearch.com
 27
(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

Social Networks
Dec-08

Jan-09

Feb-09

Gaming
Mar-09

Apr-09
$ Raised

May-09

Advertising
Jun-09

Jul-09

Video
Aug-09

Sep-09

Oct-09

Virtual World
Nov-09

Dec-09

Jan-10

Feb-10

Mar-10

Apr-10

May-10

Jun-10
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
Advertising

Mar-09

Apr-09

May-09
Gaming
# Deals

Jun-09

Jul-09

Aug-09
Virtual World

Sep-09

Oct-09
Video

Nov-09

Dec-09

Jan-10

Feb-10

Mar-10

Apr-10
Top 5 sectors average $162 mm & 15 deals per month (aggregate)

May-10

Jun-10
www.mackieresearch.com
 Upcoming Events/Earnings
Company Date Time Quarter Conf Call Details
NetDragon WebSoft, Inc. (SEHK:777) 11-Jun-10 8:00 AM (EST) Q1/10 1-866-770-7129

Source: CapitalIQ

28 www.mackieresearch.com
 Public Company Listing Trading Current US$ Market
Com pany Nam e Ticker Exchange Currency HQ Price Cap (m m ) Em ployees
A ccelerize New M edia, Inc. ACLZ OTCBB USD United States 1 15.6 10
A cto z So ft Co ., Ltd. A052790 KOSE KRW So uth Ko rea 10,450 77.2 NA
A OL, Inc. AOL NYSE USD United States 21 2,199.5 6,700
A Q Interactive, Inc. 3838 TSE JP Y Japan 167,000 98.9 NA
A sknet AG XTRA :A 5A XTRA EUR Germany 3 19.9 NA
B eyo nd Co mmerce, Inc. BYOC OTCBB USD United States 0 6.6 16
B right Things plc AIM :B GT A IM GB P United Kingdo m 0 6.4 9
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 2 229.1 NA
Changyo u.co m Limited CYOU NasdaqGS USD China 27 1,399.0 1,308
Chinese Gamer Internatio nal GTSM :3083 GTSM TWD Taiwan 298 790.7 NA
Co rnerWorld Co rpo ratio n CWRL OTCBB USD United States 0 1.9 16
Cyberplex Inc. TSX:CX TSX CA D Canada 1 35.8 NA
DA DA SpA CM :DA CM EUR Italy 3 66.5 NA
Dena Co . Ltd. TSE:2432 TSE JP Y Japan 2,856 4,436.5 NA
DigitalPo st Interactive, Inc. DGLP OTCBB USD United States 0 6.9 6
DigitalTown, Inc. DGTW OTCBB USD United States 1 37.1 3
Do lphin Digital M edia, Inc. DP DM OTCBB USD United States 0 12.4 NA
En2Go International, Inc. ETGI OTCBB USD United States 0 4.8 NA
ePro Ltd. SEHK:8086 SEHK HKD Ho ng Ko ng 1 39.3 NA
Fluid M usic Canada, Inc. TSX:FM N TSX CA D United States 2 111.0 NA
Fro gster Interactive P ictures A G FRG XTRA EUR Germany 16 48.6 NA
Gamania Digital Entertainment Co ., Ltd. 6180 GTSM TWD Taiwan 54 263.1 NA
GameOn Co Ltd. 3812 TSE JP Y Japan 79,600 86.4 NA
Geo Sentric Oyj GEO1V HLSE EUR Finland 0 32.4 120
Giant Interactive Gro up, Inc. GA NYSE USD China 7 1,623.6 NA
GigaM edia Ltd. GIGM NasdaqGS USD Taiwan 2 121.6 NA
Glu M o bile, Inc. GLUU NasdaqGM USD United States 1 38.3 479
Gravity Co ., Ltd GRVY NasdaqGM USD So uth Ko rea 2 53.6 469
Gree, Inc. TSE:3632 TSE JP Y Japan 6,820 3,361.0 NA
GungHo Online Entertainment, Inc. 3765 OSE JP Y Japan 195,500 244.4 NA
HanbitSo ft, Inc. A047080 KOSE KRW So uth Ko rea 3,920 71.5 NA
HUGHES Telematics, Inc. HUTC OTCBB USD United States 3 97.8 276
Hutchison Teleco mmunicatio ns Ho ng KongSEHK:21
Ho ldings
5 Ltd. SEHK HKD Ho ng Ko ng 2 1,000.9 1,732
IA C/InterActiveCo rp. IA CI NasdaqGS USD United States 23 2,498.3 3,200
IA S Energy, Inc. IA SC.A OTCPK USD Canada 0 3.5 NA
infoGROUP , Inc. IUSA NasdaqGS USD United States 8 458.5 3,146

29 www.mackieresearch.com
 Public Company Listing cont.
Trading Current US$ Market
Com pany Nam e Ticker Exchange Currency HQ Price Cap (m m ) Em ployees
iseemedia Inc. IEE TSXV CA D Canada 0.11 7.3 79
Jumbuck Entertainment Limited A SX:JM B A SX A UD A ustralia 0.23 9.1 NA
Kent Internatio nal Ho ldings Inc. KNTH OTCP K USD United States 1.95 6.9 2,735
Kingso ft Co rpo ratio n Limited 3888 SEHK HKD China 4.27 597.6 6
Kiwibo x.Co m, Inc. KIWB OTCB B USD United States 0.01 5.0 NA
Lingo M edia Co rpo ratio n TSXV:LM TSXV CA D Canada 0.51 14.2 65
Lo o kSmart, Ltd. LOOK NasdaqGM USD United States 1.52 26.1 NA
M ixi, Inc. 2121 TSE JP Y Japan 383,500.00 645.8 NA
M o bile Data Co rp. M B YL OTCB B USD United States 0.08 1.9 2,936
M o dern Times Gro up M tg A B M TG B OM SEK Sweden 403.60 3,329.4 2
M o ggle, Inc DB :M 0C DB EUR United States 0.85 47.7 NA
M OKO.mo bi Limited M KB A SX A UD A ustralia 0.07 6.6 NA
M ultiplied M edia Co rpo ratio n TSXV:M M C TSXV CA D Canada 0.12 27.3 405
M yriad Gro up A G M YRN SWX CHF Switzerland 4.30 179.9 NA
NEOWIZ Games Co rpo ratio n A 095660 KOSE KRW So uth Ko rea 40,000.00 702.3 2,901
NetDrago n WebSo ft, Inc. 777 SEHK HKD China 3.38 228.2 NA
Netease.co m Inc. NTES NasdaqGS USD China 30.38 3,934.8 224
NeuLio n Inco rpo rated TSX:NLN TSX CA D Canada 0.43 47.7 NA
NeXplo re Co rpo ratio n NXP C OTCP K USD United States 0.37 20.6 NA
Ngi Gro up Inc. 2497 TSE JP Y Japan 35,500.00 48.0 160
No rthgate Techno lo gies Limited 590057 B SE INR India 15.45 11.5 2,523
OA O RB C Info rmatio n Systems RB CI M ICEX RUB Russia 39.10 168.0 3,700
Open Text Co rp. OTEX NasdaqGS USD Canada 40.08 2,275.7 590
Openwave Systems Inc. OP WV NasdaqGS USD United States 2.00 167.7 NA
Oriented M edia Gro up B erhad OM EDIA KLSE M YR M alaysia 0.10 4.1 20
P aid Inc. P A YD OTCB B USD United States 0.26 70.5 NA
P erfect Wo rld Co ., Ltd. P WRD NasdaqGS USD China 23.35 1,168.9 NA
P latfo rma M edio wa P o int Gro up S.A . WSE:P GM WSE P LN P o land 1.63 48.5 91
P NI Digital M edia Inc. TSXV:P N TSXV CA D Canada 1.60 51.6 91
P o ints Internatio nal Ltd. TSX:P TS TSX CA D Canada 0.52 74.0 71
Quepasa Co rp. QP SA OTCB B USD United States 4.00 51.8 NA
Real Value Estates, Inc. RVLU OTCB B USD United States 1.03 6.6 1,754
RealNetwo rks Inc. RNWK NasdaqGS USD United States 3.27 442.3 6
Sahara M edia Ho ldings, Inc. SHHD OTCB B USD United States 0.40 13.9 230
Sco re M edia Inc. TSX:SCR TSX CA D Canada 0.86 66.4 NA
30 www.mackieresearch.com
 Public Company Listing cont.
Trading Current US$ Market
Com pany Nam e Ticker Exchange Currency HQ Price Cap (m m ) Em ployees
SK Co mmunicatio ns Co ., Ltd. A066270 KOSE KRW So uth Ko rea 18,800.00 660.8 15
SNA P Interactive, Inc. STVI OTCBB USD United States 0.18 5.9 NA
So cialwise, Inc. SCLW OTCBB USD United States 0.52 26.0 3,997
So hu.co m Inc. SOHU NasdaqGS USD China 42.49 1,606.9 155
Spark Netwo rks, Inc. LOV A M EX USD United States 3.56 73.3 8
SpectrumDNA , Inc. SPXA OTCBB USD United States 0.07 4.8 916
Taleo Co rp. TLEO NasdaqGM USD United States 23.02 915.3 7,845
Tencent Ho ldings Ltd. 700 SEHK HKD China 146.90 34,512.6 7,665
The New Yo rk Times Co mpany NYT NYSE USD United States 8.36 1,217.2 1,010
The9 Limited NCTY NasdaqGS USD China 4.21 107.4 274
TheStreet.co m, Inc. TSCM NasdaqGM USD United States 2.86 90.2 28
TransGaming, Inc. TSXV:TNG TSXV CA D Canada 0.62 35.0 700
Tree.Co m, Inc. TREE NasdaqGM USD United States 6.49 72.7 39
Unilava Co rpo ratio n UNLA OTCBB USD United States 0.22 22.0 NA
Uniserve Co mmunicatio ns Co rp. TSXV:USS TSXV CA D Canada 0.09 2.4 1,699
United Online, Inc. UNTD NasdaqGS USD United States 6.39 556.8 NA
UOM O M edia, Inc UOM O OTCBB USD Canada 0.02 1.4 1,086
ValueClick, Inc. VCLK NasdaqGS USD United States 10.76 875.1 NA
Velti P lc VEL A IM GB P United Kingdo m 4.64 252.8 2
VOIS, Inc. VOIS OTCBB USD United States 0.01 20.6 83
WebM ediaB rands Inc WEB M NasdaqGS USD United States 1.00 37.4 NA
Webzen Inc. KOSE:A 069080 KOSE KRW So uth Ko rea 12,200.00 120.4 80
Wizzard So ftware Co rpo ratio n WZE A M EX USD United States 0.20 13.2 1
Wo rlds.co m Inc. WDDD OTCBB USD United States 0.12 6.9 NA
XING AG O1B C XTRA EUR Germany 29.29 181.5 NA
YD Online Co rp. A052770 KOSE KRW So uth Ko rea 4,540.00 56.7 NA
Ynk Ko rea Inc. A023770 KOSE KRW So uth Ko rea 2,890.00 19.2 -

31 www.mackieresearch.com
 Disclaimer
RELEVANT DISCLOSURES APPLICABLE TO: NONE
1. None applicable.
ANALYST CERTIFICATION
Each analyst of Mackie Research Capital Corporation whose name appears in this report
hereby certifies that (i) the recommendations and opinions expressed in this research
report accurately reflect the analyst’s personal views and (ii) no part of the research
analyst’s compensation was or will be directly or indirectly related to the specific
conclusions or recommendations expressed in this research report.

This report has been created by Analysts that are employed by Mackie Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report.
Information about Mackie Research Capital Corporation’s Rating System, the distribution of our research to clients and the percentage of recommendations which are in each of our rating categories
is available on our web site at www.mackieresearch.com.
The information contained in this report has been drawn from sources believed to be reliable but its accuracy or completeness is not guaranteed, nor in providing it does Mackie Research Capital
Corporation assume any responsibility or liability. Mackie Research Capital Corporation, its directors, officers and other employees may, from time to time, have positions in the securities mentioned
herein. Contents of this report cannot be reproduced in whole or in part without the expressed permission of Mackie Research Capital Corporation. (U.S. Institutional Clients — Research Capital
U.S.A. Inc. (a wholly owned subsidiary of Mackie Research Capital Corporation) accepts responsibility for the contents of this report subject to the terms & limitations set out above. Firms or
institutions receiving this report should effect transactions in securities discussed in the report through Research Capital U.S.A. Inc., a Broker-Dealer Registered with the United States Securities and
Exchange Commission).
Toronto 416.860.7600 Montreal 514.399.1500 Vancouver 604.662.1800 Calgary 403.218.6375 Regina 306.566.7550 St. Albert 780-460-6460

32 www.mackieresearch.com