Web 2.

0 Weekly
Funds for Online Gaming Appear Endless
June 16, 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) Online Gaming Continues to Attract Significant Money

888 Holdings acquired online gaming company Mytopia for $18 mm.

In the second largest financing overall this year, Zynga (online gaming) raised another
$147 mm from Softbank, bringing its total financing to $381 mm.

Financial Results/Guidance

Cyberplex Inc. (TSX:CX) completed the acquisition of Tsavo Media, Inc. from
Fountainhead Estate Holding Corp., American Capital Equity I of American Capital
Equity Management LLC, and others on June 8, 2010.

NetDragon WebSoft, Inc. (SEHK:777), announced first quarter revenues of RMB
139,476,000 compared to RMB 173,898,000 for the same period a year ago. Profit
before taxation was RMB 21,379,000 compared to RMB 53,502,000 for the same period
a year ago. Profit for the period attributable to owners of the company was RMB
21,215,000 compared to RMB 48,943,000 for the same period a year ago. Diluted EPS
was 4.03 cents compared to 9.31 cents for the same period a year ago.

Gravity Co., Ltd (NasdaqGM:GRVY) reported net income attributable to parent
company was $337 million or $0.05 per share on total net revenues of $9,840 million
compared to net income attributable to parent company of $4,649 million or $0.67 per
share on total net revenues of $14,696 million for the same period a year ago.
2 www.mackieresearch.com
 Public Company Data

3 www.mackieresearch.com
 Aggregate Public Data

Web 2.0 Public Companies Total Median Max Min

# Companies 101 - - -
Market Cap (US$ mm) 75,829.5 69.8 29,926.5 1.7
Revenue (US$ mm) 23,428.4 56.6 3,057.7 0.0
1 Year revenue growth 6.7% 8961.6% -100.0%
EBITDA as % of revenue - 12.8% 63.1% -63.7%
Net cash (US$ mm) 8,998.7 2.3 1,825.8 -670.8
TEV/Revenue - 1.9x 45.2x 0.0x
TEV/EBITDA - 8.5x 43.7x 0.0x
P/E - 16.4x 89.2x 0.0x
Relative to 52 week high -39.2% -2.0% -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
8%
4%

Falling
Falling 59%
36% Rising
56% Rising
37%

EV/EBITDA P/E

Flat
Flat
4%
0%
Falling
Falling 55%
53%

Rising
43% Rising
45%

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
4/28/2009
5/5/2009
5/12/2009
5/19/2009
5/26/2009
6/2/2009
6/9/2009
6/16/2009
6/23/2009
6/30/2009
7/7/2009
7/14/2009
7/21/2009
7/28/2009
8/4/2009
8/11/2009
Median EV/Revenue

8/18/2009
8/25/2009
9/1/2009
9/8/2009
9/15/2009
9/22/2009
9/29/2009
10/6/2009
10/13/2009
10/20/2009
10/27/2009

Median
11/3/2009
11/10/2009
11/17/2009
11/24/2009
12/1/2009
12/8/2009
12/15/2009
12/22/2009
12/29/2009
1/5/2010

Long-term average
1/12/2010
1/19/2010
1/26/2010
2/2/2010
2/9/2010
2/16/2010
2/23/2010
3/2/2010
3/9/2010
3/16/2010
LT average

3/23/2010
flat with prior

3/30/2010
week, well below

4/6/2010
Revenue multiples

4/13/2010
4/20/2010
4/27/2010
5/4/2010
5/11/2010
5/18/2010
5/25/2010
6/1/2010
6/8/2010
6/15/2010
384040414141414343454646474747485051505150535656616161646666676464666970717174717168707472757679798180818080828285838584

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

# companies
0. 0x
5. 0x
10. 0x
15. 0x
20. 0x
25. 0x
30. 0x
4/28/2009
5/5/2009
5/12/2009
5/19/2009
5/26/2009
6/2/2009
6/9/2009
6/16/2009
6/23/2009
6/30/2009
7/7/2009
7/14/2009
7/21/2009
7/28/2009
Median EV/EBITDA

8/4/2009
8/11/2009
8/18/2009
8/25/2009
9/1/2009
9/8/2009
9/15/2009
9/22/2009
9/29/2009
10/6/2009
10/13/2009
10/20/2009
10/27/2009

Median
11/3/2009
11/10/2009
11/17/2009
11/24/2009
12/1/2009
12/8/2009
12/15/2009
12/22/2009
12/29/2009
1/5/2010
1/12/2010

Long-term average
1/19/2010
1/26/2010
2/2/2010
2/9/2010
2/16/2010
2/23/2010
3/2/2010
3/9/2010
3/16/2010
below LT average

3/23/2010
3/30/2010
and remain depressed

4/6/2010
EV/EBITDA multiples drop

4/13/2010
4/20/2010
4/27/2010
5/4/2010
5/11/2010
5/18/2010
5/25/2010
6/1/2010
6/8/2010
6/15/2010
20 21 22 23 23 22 22 23 24 23 25 23 24 26 26 26 26 26 25 26 27 28 33 29 34 35 37 38 40 40 39 38 41 41 41 39 39 42 43 42 43 42 43 43 43 43 46 45 44 50 51 50 52 53 53 51 51 49 53 51

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
4/28/2009
5/5/2009
5/12/2009
Median P/E

5/19/2009
5/26/2009
6/2/2009
6/9/2009
6/16/2009
6/23/2009
6/30/2009
7/7/2009
7/14/2009
7/21/2009
7/28/2009
8/4/2009
8/11/2009
8/18/2009
8/25/2009
9/1/2009
9/8/2009
9/15/2009
9/22/2009
9/29/2009
10/6/2009
10/13/2009
10/20/2009
10/27/2009

Median
11/3/2009
11/10/2009
11/17/2009
11/24/2009
12/1/2009
12/8/2009
12/15/2009
12/22/2009
12/29/2009
1/5/2010
1/12/2010

Long-term average
1/19/2010
1/26/2010
2/2/2010
2/9/2010
2/16/2010
2/23/2010
3/2/2010
3/9/2010
3/16/2010
3/23/2010
3/30/2010
4/6/2010
below LT average
P/E multiples also

4/13/2010
4/20/2010
4/27/2010
5/4/2010
5/11/2010
5/18/2010
5/25/2010
6/1/2010
6/8/2010
6/15/2010
20 19 18 18 19 19 19 19 20 20 19 18 19 19 20 21 24 24 25 25 26 27 29 27 30 32 33 31 34 34 35 36 38 39 39 39 40 40 41 42 40 40 40 39 38 38 34 33 32 35 35 35 36 35 35 33 35 32 34 33

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
50. 0
NeXplore C orporation

45.2
Worlds .c om Inc.

33.0
B right T hings plc

29.2
S pectrumDNA, Inc .

23.7

Source: CapitalIQ
MO K O . mobi Limited

17.9
T enc ent H oldings L td.
G eoS entric O y j

15.615.2
P aid Inc.

12.7
B ey ond C ommerc e, Inc.

11.4
G ree, Inc.
C hines e G amer International
L ingo Media C orporation

10.19.69.5
Dena C o. L td.
T rans G aming, Inc.

7.9 7.6 7.4

DigitalP os t Interactiv e, Inc.
HU G H E S T elematic s , Inc .
Ac celeriz e New Media, Inc .

5.5 5.3
WebMediaB rands Inc
F luid Mus ic C anada, Inc.
C hangyou. com Limited
S K C ommunic ations C o. , Ltd.

4.84.74.4 4.1
3.8
T aleo C orp.
Mix i, Inc.
is eemedia Inc.
K ings oft C orporation Limited
Wiz z ard S oftware C orporation
F rogs ter Interac tiv e P ic tures AG

3.53.23.2 3.13.0
eP ro Ltd.
EV/Revenue Ranking

U O MO Media, Inc
O pen T ex t C orp.
NE O WIZ G ames C orporation
Modern T imes G roup Mtg AB
P NI Digital Media Inc.
S ohu.c om Inc.
XING AG
V elti P lc
Webz en Inc .
S c ore Media Inc.
2.82.62.62.42.32.22.22.12.12.12.0

S hutterfly , Inc .
V alueC lick , Inc.
G ungHo O nline E ntertainment, Inc.
U nilav a C orporation
My riad G roup AG
P latforma Mediowa P oint G roup S . A.
Y D O nline C orp.
NeXplore has highest

S park Network s , Inc.

NeuLion Inc orporated
revenue multiple at 45.2x

H anbitS oft, Inc .

G amania Digital E ntertainment C o., Ltd.
H utc his on T elecommunic ations H ong
S NAP Interac tive, Inc .
O riented Media G roup B erhad
1.9 1.9 1.8 1.8 1.7 1.7 1.5 1.5 1.5 1.51.4 1.4 1.4 1.3 1.3

infoG R O U P , Inc .
O AO R B C Information S ys tems
C ornerWorld C orporation
Internet G roup S A
T he New Y ork T imes C ompany
AQ Interactive, Inc.
T heS treet.c om, Inc .
IAC /InterActiv eC orp.
NetDragon WebS oft, Inc.
United O nline, Inc .
Y nk K orea Inc .
C DC C orp.
Unis erv e C ommunications C orp.
AO L, Inc .
P oints International L td.
DADA S pA
G igaMedia L td.
G lu Mobile, Inc .
1.0 1.0 1.0 0.90.80.80.80.80.80.80.8 0.70.70.70.60.60.60.6

Northgate T echnologies Limited

O penwav e S y s tems Inc .
T ree. C om, Inc.
Actoz S oft C o. , Ltd.
C y berplex Inc.
J umbuc k E ntertainment L imited
R ealNetwork s Inc.
G ameO n C o Ltd.
As k net AG
L ook S mart, L td.
0.40.40.30.30.30.20.20.10.0

www.mackieresearch.com
 12
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
S K C ommunic ations C o. , L td.

43. 7
H anbitS oft, Inc .

33.2

Source: CapitalIQ
T enc ent H oldings L td.

30. 0
T aleo C orp.

28. 4
C hines e G amer International
F rogs ter Interactive P ic tures AG

18.9 18. 8
G ree, Inc.
My riad G roup AG
Modern T imes G roup Mtg AB
Dena C o. L td.

17.5 17.416.616.6
O penwave S y s tems Inc .
Mix i, Inc.
T heS treet.c om, Inc .
S hutterfly , Inc.
15.0 14.814. 614.5
EV/EBITDA Ranking

AQ Interac tive, Inc.

S c ore Media Inc.
Y D O nline C orp.
13. 0 12. 912.7

IAC /InterAc tiveC orp.

P latforma Mediowa P oint G roup S . A.
10. 5 9. 8

O pen T ex t C orp.
P NI Digital Media Inc.
G amania Digital E ntertainment C o., L td.
the group at 43.7x

NE O WIZ G ames C orporation

XING AG
SK Communications leads

V elti P lc
9. 2 8.9 8. 6 8. 5 8.5 8. 3

G ungH o O nline E ntertainment, Inc .

DADA S pA
U nis erve C ommunic ations C orp.
K ings oft C orporation L imited
S park Network s , Inc.
C hangy ou.c om L imited
V alueC lic k , Inc.
8.0 7.8 7.7 7.6 7. 5 7.0 6. 8

infoG R O U P , Inc .
C DC C orp.
6. 7 6. 6

H utc his on T elec ommunications H ong K ong H oldings

T he New Y ork T imes C ompany
S ohu.c om Inc.
NetDragon WebS oft, Inc.
5. 5 5.4 5.2 4.4

United O nline, Inc .

C y berplex Inc.
4.0 3.2

AO L , Inc .
Ac toz S oft C o., L td.
2.2 1. 8

G ameO n C o L td.
J umbuc k E ntertainment L imited
0.8 0. 6

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
100.0

Source: CapitalIQ
S hutterfly, Inc .

89.2
P oints International L td.

C DC C orp.

50.8 50. 1
infoG R O UP , Inc .

Mix i, Inc .
P/E Ranking

46. 8 46. 1
O pen T ex t C orp.

T enc ent H oldings L td.

Dena C o. L td. 40.4 40.0

G ree, Inc .
36.0 34.2

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

31.2

V elti P lc

C hines e G amer International

26.1 25. 4

F rogs ter Interac tive P ic tures AG

NetDragon WebS oft, Inc .

NE O WIZ G ames C orporation

21. 6 20. 3 19.9

Hutchis on T elec ommunic ations Hong K ong Holdings

L td.
Shutterfly has the

T he New Y ork T imes C ompany

highest P/E at 89.2x

V alueC lick , Inc .

17.1 16.4 15.9

S ohu.c om Inc .

C y berplex Inc .

K ings oft C orporation L imited

14.0 13.4 13. 1

DADA S pA

AO L , Inc.

C hangy ou.c om L imited

U nited O nline, Inc.

11. 6 11. 1 10.2 9.6

G ameO n C o L td.
9. 1

U nis erve C ommunic ations C orp.

6. 2

J umbuck E ntertainment L imited

3. 5

Neteas e.c om Inc.

2.1

G iant Interac tive G roup, Inc .

2.1

S handa Interac tive E ntertainment L td.

1.9

P erfec t World C o. , L td.

1.2

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

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

6/23/2009
6/30/2009
7/7/2009
7/14/2009
7/21/2009
7/28/2009
8/4/2009
8/11/2009
8/18/2009
8/25/2009
9/1/2009
9/8/2009
9/15/2009
9/22/2009
9/29/2009
10/6/2009
10/13/2009
10/20/2009
10/27/2009
11/3/2009
11/10/2009
11/17/2009
Total Market Capitalization

11/24/2009
12/1/2009
12/8/2009
12/15/2009
12/22/2009
12/29/2009
1/5/2010
1/12/2010
1/19/2010
1/26/2010
2/2/2010
2/9/2010
2/16/2010
2/23/2010
3/2/2010
Total market cap drops to $75.5 bn

3/9/2010
3/16/2010
3/23/2010
3/30/2010
4/6/2010
4/13/2010
4/20/2010
4/27/2010
5/4/2010
5/11/2010
5/18/2010
5/25/2010
6/1/2010
6/8/2010
6/15/2010
98 98 98 98 98 98 98 98 98 98 98 98 98 98 98 99 99 99 99 99 99 99100100100100100100100100100100100100100101101101101101101101101101101101101101101101101101

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

8
Diversified

Gaming

28
Media

10
Social Networking

16
1
Collaboration

6
Marketing

3
Enterprise

2
Internet Retail

1
Search

5
Mobile
Total Market Cap by Sector

3
SMS/Voice

2
Music

2
Dating

1
Financial Services

2
Virtual World
3
Advertising
1

Video
1

Vertical Communities
Eight Diversified companies

Payment
totaling over $34 bn in market cap

Podcasting
3

Infrastructure
1

Learning
www.mackieresearch.com
 16
0
1,000
2,000
3,000
4,000
5,000
6,000
Tencent Holdings Ltd.
Dena Co. Ltd.
Netease.com Inc.
Modern Times Group Mtg AB

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

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

GeoSentric Oyj
Multiplied Media Corporation
Socialwise, Inc.
LookSmart, Ltd.
VOIS, Inc.
Asknet AG
Tencents $30 bn market cap

Ynk Korea Inc.

NeXplore Corporation
Accelerize New Media, Inc.
Wizzard Software Corporation
Lingo Media Corporation
Youblast Global, Inc.
Dolphin Digital Media, Inc.
Northgate Technologies Limited
iseemedia Inc.
Unilava Corporation
MOKO.mobi Limited
Jumbuck Entertainment Limited
Internet Group SA
Kent International Holdings Inc.
DigitalPost Interactive, Inc.
Bright Things plc
Beyond Commerce, Inc.
SNAP Interactive, Inc.
Worlds.com Inc.
Kiwibox.Com, Inc.
En2Go International, Inc.
SpectrumDNA, Inc.
IAS Energy, Inc.
Oriented Media Group Berhad
Uniserve Communications Corp.
UOMO Media, Inc
CornerWorld Corporation
BroadWebAsia Inc.
Mobile Data Corp.
www.mackieresearch.com
 Price Performance 1 Week
Positive price momentum, with 55% of
stocks rising over the past week. Price Momentum

Falling
36%

Rising
Flat
55%
9%

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

30.0% 26.6%
Dating sector shows
20.0% highest weekly returns
10.1% 9.8% 9.5%
10.0% 7.3%
4.9% 4.6% 4.2% 3.4%
3.2%
1.6% 1.0% 0.9%
0.0%
-1.2% -2.0% -2.1%
-3.2% -4.8%
-10.0% -6.1%

-20.0% -16.1%
-21.9%
-24.0%
-30.0%
Internet Retail

Infrastructure
Networking

Collaboration

Virtual World
Financial

Payment
Communities

Advertising

Learning
Music
Dating

Podcasting

Enterprise

Marketing

Gaming

Mobile

Diversified

Search
Services
Media

SMS/Voice
Video
Social

Vertical

Source: CapitalIQ

18 www.mackieresearch.com
 19
-80.0%
-60.0%
-40.0%
-20.0%
0.0%
20.0%
40.0%
60.0%
80.0%
UNLA
BWBA
MBYL
GEO1V
WDDD

Source: CapitalIQ
TSXV:LM
BYOC
NXPC
SPXA
DPDM
700
SEHK:8086
GRVY
QPSA
TSXV:TNG
WSE:PGM
AIM:BGT
OMEDIA
SNDA
LOOK
TSX:FMN
A066270
IEE
HUTC
6180
3812
SCLW
2121
KOSE:A069080
NCTY
TSE:2432
SHHD
OTEX
A052790
GTSM:3083
A023770
CWRL
IUSA
KIWB
ETGI
MYRN
ASX:JMB
DGTW
DB:M0C
TSE:3632
VEL
777
SEHK:215
Price Performance 1 Week

RBCI
3888
O1BC
WSE:IGR
CM:DA
TSX:PTS
GA
PAYD
3838
ACLZ
DGLP
NTES
GLUU
TSX:SCR
XTRA:A5A
SOHU
LOV
A052770
WEBM
TSX:NLN
3765
TREE
RNWK
TSXV:MMC
IACI
590057
A095660
TSX:CX
TSCM
GIGM
AOL
CYOU
UNTD
VCLK
A047080
KNTH
TSXV:PN
WZE
OPWV
SFLY
FRG
MTG B
TLEO
2497
CHIN.A
PWRD
IASC.A
NYT
UOMO
MKB
STVI
TSXV:USS
VOIS
www.mackieresearch.com
 20
0%
20%
40%
60%
80%
100%
120%
140%
160%

0%
500%
1000%
1500%
2000%
2500%
OAO RBC Youblast Global,
Information Inc.
Systems

Mobile Data
ePro Ltd.

Source: CapitalIQ
Corp.

AQ Interactive, Beyond
Inc. Commerce, Inc.

Beyond Velti Plc

Commerce, Inc.

Uniserve
Communications Gree, Inc.
Corp.

6 Month
1 Month

SNAP
iseemedia Inc.
Interactive, Inc.

AQ Interactive,
Velti Plc
Inc.

Uniserve
Score Media Inc. Communications
Corp.

SK
MOKO.mobi
Communications
Limited
Co., Ltd.

NEOWIZ Games
Dena Co. Ltd.
Corporation
Price Performance (Top 10)

0%
20%
40%
60%
80%
100%
120%
140%
160%

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

OAO RBC
Beyond Commerce,
Information
Inc.
Systems

Quepasa
ePro Ltd.
Corp.

ePro Ltd. LookSmart, Ltd.

SK Communications
Velti Plc
Co., Ltd.

Dena Co. Ltd. Glu Mobile, Inc.

1 Year
3 Month

Fluid Music
DigitalTown, Inc.
Canada, Inc.

TransGaming,
Velti Plc
Inc.

Frogster
Interactive Youblast Global, Inc.
Pictures AG

Modern Times
Dena Co. Ltd.
Group Mtg AB
Hutchison
Telecommunications
Gree, Inc. Hong Kong Holdings
Ltd.
www.mackieresearch.com
 21
-70.0%
-60.0%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%

-100.0%
-90.0%
-80.0%
-70.0%
-60.0%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
Dolphin Digital
Actoz Soft
Media, Inc.
Co., Ltd.

SpectrumDNA,

Source: CapitalIQ
Mixi, Inc. Inc.

Kiwibox.Com, NeXplore
Inc. Corporation

Beyond
Cyberplex Inc. Commerce,
Inc.

Unilava Lingo Media

Corporation Corporation
1 Week

6 Month
NeXplore Worlds.com
Corporation Inc.

SpectrumDNA,
GeoSentric Oyj
Inc.

En2Go
Mobile Data
International,
Corp.
Inc.

CornerWorld BroadWebAsia
Corporation Inc.

BroadWebAsia Unilava
Inc. Corporation
-90.0%
-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 Dolphin Digital

Software Media, Inc.
Corporation

SpectrumDNA, Quepasa Corp.

Inc.

Lingo Media
Cyberplex Inc. Corporation

IAS Energy, Paid Inc.

Inc.

CornerWorld SpectrumDNA,
Corporation Inc.
1 Year
1 Month

UOMO Media, NeXplore

Inc Corporation

Youblast BroadWebAsia
Global, Inc. Inc.

Beyond
CornerWorld
Commerce, Corporation
Inc.

En2Go
IAS Energy,
International,
Inc.
Inc.

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

22 www.mackieresearch.com
 Financing Activity Current Month
C om pany Nam e C ountr y S e ctor Ac quis ition Ange l/S e e d De bt financ ing S e rie s A S e r ie s B S e r ie s C S e rie s D NA Gr and Total
Zynga US A Gaming 147. 0 147.0
Invite Me dia US A A naly tic s 70. 0 70. 0
Fe tc hBac k US A A dvertis ing 40. 0 40. 0
Haute L ook US A Internet R etail 31. 0 31. 0
C halle nge Gam e s US A Gaming 20. 5 20. 5
Mytopia Is rael Gaming 18. 0 18. 0
Mar in S oftw ar e US A A dvertis ing 11. 2 11. 2
Roc k You US A Widget 10. 0 10. 0
Book Re nte r US A S oc ial Commerc e 10.0 10. 0
Mac hinim a.c om US A V irtual World 9. 0 9. 0
T rans pe r a US A Mobile A d 7. 0 7. 0
Kudz u Inte r ac tive US A Financial S ervices 7. 0 7. 0
C ur s e US A S oc ial Netw orks 6. 0 6. 0
Adis n US A A dvertis ing 5. 5 5. 5
C onnotate US A A naly tic s 5. 3 5. 3
Me tacafe US A V ideo 5. 0 5. 0
BigDoor Me dia US A Media 5. 0 5. 0
Be ac hMint US A S oc ial Commerc e 5. 0 5. 0
S pons or Pay Germany V irtual G oods 4. 6 4. 6
L uc idMe dia US A A dvertis ing 4. 5 4. 5
Giiv US A S oc ial Commerc e 3. 4 3. 4
Attr ibutor US A A naly tic s 3. 2 3. 2
T re fis US A A naly tic s 3. 2 3. 2
Me tam ar k e ts US A A dvertis ing 2. 5 2. 5
S naptic US A Mobile 2. 3 2. 3
uC ir r us US A Inf ras truc ture 1. 7 1. 7
WOWIO US A Internet R etail 1. 7 1. 7
Dilithium Ne tw or k s US A V ideo 1. 5 1. 5
S choology US A Online L earning 1. 3 1. 3
T hum btack US A Crow ds ourc ed Content 1. 2 1. 2
S oGe o Netherlands L ocation-bas ed S NS 0. 8 0. 8
Rum m ble UK L ocation-bas ed S NS 0. 8 0. 8
T e am S nap US A V ertic al Communities 0. 7 0. 7
154.0 6.0 1.5 32.6 17.0 47.0 175.9 11.8 445.8

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

Social
Social
Commerce Other
Internet Retail Commerce
4% 14%
7% 9%
Internet Retail
6%
Advertising
14%

Advertising
15% Other
46%

Analytics Gaming
18% 43% Analytics
15%

Gaming
9%

24 www.mackieresearch.com
 Financing Activity

1000.0
June financing remained strong with 16.0
over US$290 mm raised versus ~US$260
mm monthly total deal value average 14.1
900.0
14.0

800.0 12.2
12.0
700.0 10.3
9.8 10.1
10.0
600.0 8.9
(US$m)

(US$m)
7.8
500.0 8.0
6.4 6.4
400.0 5.8 5.7
5.4 6.0
4.6
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
Jun-10 includes $147m Zynga investment

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

0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
450.0
500.0

# companies
Gaming

13
1
Diversified

5
Collaboration

9
Mobile

8
Media
Social

9
Commerce
Crowdsourced

3
Content
Advertising

15
the past quarter

Analytics

14
area of interest in
Gaming the biggest

8
Video

5
Internet Retail
Social

8
Networks
Financial

5
Services

5
Virtual World

2
Widget

4
Enterprise
Vertical

9
Communities

5
Infrastructure
Mobile

1
Payment
2
Virtual Goods
2

Mobile Ad
Online
2

Learning
2

Music
1

Aggregation
3

Search
1

Classified
3

Travel
Location-
4

based SNS
1

Microblog
Capital Market Activity Ranking by Sector, last three months

Micromedia
1

Blog
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 $170 mm & 15 deals per month (aggregate)

May-10

Jun-10
www.mackieresearch.com
 Upcoming Events/Earnings
Company Date Time Quarter Conf Call Details
Tree.Com, Inc. (NasdaqGM:TREE) 29-Jul-10 11:00 AM (EST) Q2/10 877-874-1588

Source: CapitalIQ

28 www.mackieresearch.com
 Public Company Listing T rading C urre nt US $ Mark e t
C om pany Nam e T ick e r Exchange C ur re ncy HQ Price C ap (m m ) Em ploye e s
A ccelerize New M edia, Inc. ACLZ OTCBB USD United States 1 15.9 10
A cto z So ft Co ., Ltd. A052790 KOSE KRW So uth Ko rea 10,700 77.2 NA
A OL, Inc. AOL NYSE USD United States 22 2,309.4 6,700
A Q Interactive, Inc. 3838 TSE JP Y Japan 150,000 89.4 NA
A sknet AG XTRA :A 5A XTRA EUR Germany 3 20.2 NA
B eyo nd Co mmerce, Inc. BYOC OTCBB USD United States 0 6.0 16
B right Things plc AIM :B GT A IM GB P United Kingdo m 0 6.2 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 2 250.1 NA
Changyo u.co m Limited CYOU NasdaqGS USD China 29 1,500.1 1,308
Chinese Gamer Internatio nal GTSM :3083 GTSM TWD Taiwan 279 741.4 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 37.9 NA
DA DA SpA CM :DA CM EUR Italy 3 69.8 597
Dena Co . Ltd. TSE:2432 TSE JP Y Japan 2,869 4,486.5 NA
DigitalPo st Interactive, Inc. DGLP OTCBB USD United States 0 6.8 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 35.8 707
Fluid M usic Canada, Inc. TSX:FM N TSX CA D United States 2 107.9 NA
Fro gster Interactive P ictures A G FRG XTRA EUR Germany 18 57.6 NA
Gamania Digital Entertainment Co ., Ltd. 6180 GTSM TWD Taiwan 53 260.5 NA
GameOn Co Ltd. 3812 TSE JP Y Japan 77,900 85.1 NA
Geo Sentric Oyj GEO1V HLSE EUR Finland 0 33.2 120
Giant Interactive Gro up, Inc. GA NYSE USD China 7 1,658.5 NA
GigaM edia Ltd. GIGM NasdaqGS USD Taiwan 2 133.4 NA
Glu M o bile, Inc. GLUU NasdaqGM USD United States 1 41.3 479
Gravity Co ., Ltd GRVY NasdaqGM USD So uth Ko rea 2 47.3 NA
Gree, Inc. TSE:3632 TSE JP Y Japan 6,910 3,428.1 NA
GungHo Online Entertainment, Inc. 3765 OSE JP Y Japan 189,500 238.4 NA
HanbitSo ft, Inc. A047080 KOSE KRW So uth Ko rea 4,335 77.3 NA
HUGHES Telematics, Inc. HUTC OTCBB USD United States 3 94.4 276
Hutchison Teleco mmunicatio ns Ho ng KongSEHK:21
Ho ldings
5 Ltd. SEHK HKD Ho ng Ko ng 2 1,025.8 1,732
IA C/InterActiveCo rp. IA CI NasdaqGS USD United States 23 2,604.7 3,200
IA S Energy, Inc. IA SC.A OTCPK USD Canada 0 4.1 NA
infoGROUP , Inc. IUSA NasdaqGS USD United States 8 457.9 3,146

29 www.mackieresearch.com
 Public Company Listing cont.
T rading C urr e nt US $ Mark e t
C om pany Nam e T ick e r Exc hange C ur re nc y HQ Price C ap (m m ) Em ploye e s
iseemedia Inc. IEE TSXV CA D Canada 0.13 9.1 NA
Jumbuck Entertainment Limited A SX:JM B A SX A UD A ustralia 0.20 8.4 79
Kent Internatio nal Ho ldings Inc. KNTH OTCP K USD United States 1.95 6.9 NA
Kingso ft Co rpo ratio n Limited 3888 SEHK HKD China 4.22 590.7 2,735
Kiwibo x.Co m, Inc. KIWB OTCB B USD United States 0.01 5.0 6
Lingo M edia Co rpo ratio n TSXV:LM TSXV CA D Canada 0.50 14.2 NA
Lo o kSmart, Ltd. LOOK NasdaqGM USD United States 1.36 23.3 65
M ixi, Inc. 2121 TSE JP Y Japan 388,500.00 658.6 NA
M o bile Data Co rp. M B YL OTCB B USD United States 0.07 1.7 NA
M o dern Times Gro up M tg A B M TG B OM SEK Sweden 452.00 3,843.8 2,936
M o ggle, Inc DB :M 0C DB EUR United States 0.85 48.9 2
M OKO.mo bi Limited M KB A SX A UD A ustralia 0.09 9.1 NA
M ultiplied M edia Co rpo ratio n TSXV:M M C TSXV CA D Canada 0.12 29.2 NA
M yriad Gro up A G M YRN SWX CHF Switzerland 4.40 189.1 NA
NEOWIZ Games Co rpo ratio n A 095660 KOSE KRW So uth Ko rea 42,800.00 734.7 NA
NetDrago n WebSo ft, Inc. 777 SEHK HKD China 3.37 227.6 2,901
Netease.co m Inc. NTES NasdaqGS USD China 31.00 4,015.2 NA
NeuLio n Inco rpo rated TSX:NLN TSX CA D Canada 0.45 51.1 224
NeXplo re Co rpo ratio n NXP C OTCP K USD United States 0.30 16.7 NA
Ngi Gro up Inc. 2497 TSE JP Y Japan 40,750.00 55.4 NA
No rthgate Techno lo gies Limited 590057 B SE INR India 16.05 12.0 160
OA O RB C Info rmatio n Systems RB CI M ICEX RUB Russia 38.48 166.1 2,523
Open Text Co rp. OTEX NasdaqGS USD Canada 39.78 2,258.7 3,700
Openwave Systems Inc. OP WV NasdaqGS USD United States 2.23 187.0 590
Oriented M edia Gro up B erhad OM EDIA KLSE M YR M alaysia 0.10 3.9 NA
P aid Inc. P A YD OTCB B USD United States 0.26 70.5 20
P erfect Wo rld Co ., Ltd. P WRD NasdaqGS USD China 25.96 1,299.6 NA
P latfo rma M edio wa P o int Gro up S.A . WSE:P GM WSE P LN P o land 1.52 47.9 NA
P NI Digital M edia Inc. TSXV:P N TSXV CA D Canada 1.69 55.7 NA
P o ints Internatio nal Ltd. TSX:P TS TSX CA D Canada 0.55 80.1 93
Quepasa Co rp. QP SA OTCB B USD United States 3.50 45.4 71
RealNetwo rks Inc. RNWK NasdaqGS USD United States 3.43 463.9 1,754
Yo ublast Glo bal, Inc. SHHD OTCB B USD United States 0.40 13.6 6
Sco re M edia Inc. TSX:SCR TSX CA D Canada 0.88 69.4 230
Shanda Interactive Entertainment Ltd. SNDA NasdaqGS USD China 40.50 2,404.8 5,721
30 www.mackieresearch.com
 Public Company Listing cont.
T rading C urr e nt US $ Mark e t
C om pany Nam e T ick e r Exchange C ur re ncy HQ Price C ap (m m ) Em ploye e s
SK Co mmunicatio ns Co ., Ltd. A 066270 KOSE KRW So uth Ko rea 19,900.00 683.9 NA
SNA P Interactive, Inc. STVI OTCB B USD United States 0.18 5.9 15
So cialwise, Inc. SCLW OTCB B USD United States 0.48 24.0 NA
So hu.co m Inc. SOHU NasdaqGS USD China 43.98 1,663.2 3,997
Spark Networks, Inc. LOV A M EX USD United States 3.57 73.5 155
SpectrumDNA , Inc. SP XA OTCB B USD United States 0.07 4.5 8
Taleo Co rp. TLEO NasdaqGM USD United States 25.59 1,017.5 916
Tencent Holdings Ltd. 700 SEHK HKD China 127.40 29,926.5 7,845
The New Yo rk Times Co mpany NYT NYSE USD United States 9.76 1,421.1 7,665
The9 Limited NCTY NasdaqGS USD China 4.04 103.1 1,010
TheStreet.co m, Inc. TSCM NasdaqGM USD United States 2.95 93.1 274
TransGaming, Inc. TSXV:TNG TSXV CA D Canada 0.60 34.7 28
Tree.Com, Inc. TREE NasdaqGM USD United States 6.77 75.9 700
Unilava Co rpo ratio n UNLA OTCB B USD United States 0.09 9.1 40
Uniserve Communications Co rp. TSXV:USS TSXV CA D Canada 0.14 3.8 NA
United Online, Inc. UNTD NasdaqGS USD United States 6.72 585.5 1,699
UOM O M edia, Inc UOM O OTCB B USD Canada 0.02 2.1 NA
ValueClick, Inc. VCLK NasdaqGS USD United States 11.74 954.8 1,086
Velti P lc VEL A IM GB P United Kingdom 4.53 252.0 459
VOIS, Inc. VOIS OTCB B USD United States 0.01 20.6 2
WebM ediaB rands Inc WEB M NasdaqGS USD United States 1.02 38.2 83
Webzen Inc. KOSE:A 069080 KOSE KRW So uth Ko rea 11,900.00 114.8 NA
Wizzard So ftware Corpo ratio n WZE A M EX USD United States 0.22 14.6 80
Wo rlds.co m Inc. WDDD OTCB B USD United States 0.09 5.2 1
XING A G O1B C XTRA EUR Germany 28.78 183.0 293
YD Online Co rp. A 052770 KOSE KRW So uth Ko rea 4,815.00 58.8 NA
Ynk Ko rea Inc. A 023770 KOSE KRW So uth Ko rea 2,795.00 18.1 NA

31 www.mackieresearch.com
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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 analysts personal views and (ii) no part of the research
analysts compensation was or will be directly or indirectly related to the specific
conclusions or recommendations expressed in this research report.

This report has been created by Analysts that are employed by Mackie Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report.
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32 www.mackieresearch.com