Web 2.0 Weekly - Aug. 10, 2010: "Consolidation by Google"

Web 2.
0 Weekly
“Consolidation by Google”
August 10, 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) – Consolidation by Google
Google confirmed or announced two acquisitions during the week, including Jambool
($70 mm) involved in virtual goods monetization processes, and widget market, Slide
($182 mm).
In other acquisition-related news, Forbes sold investment media website Investopedia
to ValueClick for $42 mm. Zynga acquired Japanese mobile app and game developer,
Unoh, for an estimated $29 mm. Finally, dubbed “the Spanish Facebook,” social
networking site, Tuenti, was acquired by Telefonica in a $99 mm deal.
The largest financing (aside from the aforementioned M&A activity) involved “the
Chinese Youtube,” Tudou, raising $50 mm in Series E funds.
Financial Results/Guidance/Partnerships/Product
Geo-location search app maker, Multiplied Media (TSXV:MMC), made two product and
distribution announcements – (1) the gasoline station search function on Poynt (the
company’s GPS location-based search app) was extended to the iPhone and iPod
Touch versions, and (2) the company (through subsidiary, UnoMobi) extended its email-
to-SMS service for legacy phones to over 20 million Globe Telecom subscribers in the
Philippines.
2 www.mackieresearch.com
Public Company Data
Aggregate Public Data
Web 2.0 Public Companies Total Median Max Min

# Companies 102 - - -
Market Cap (US$ mm) 86,452.0 49.4 36,187.5 0.0
Revenue (US$ mm) 28,694.2 43.9 6,877.0 0.0
1 Year revenue growth 1.9% 8961.6% -100.0%
EBITDA as % of revenue - 8.8% 63.2% -99.5%
Net cash (US$ mm) 17,385.8 2.9 6,672.5 -670.2
TEV/Revenue - 1.7x 37.6x 0.1x
TEV/EBITDA - 8.5x 38.4x 0.4x
P/E - 16.5x 92.6x 0.0x
Relative to 52 week high -41.4% -1.0% -93.5%
Source: CapitalIQ
5
0
5
10
15
20
25
30
Gaming
28
Social Networking
16
10
Media
9
Diversified
6
Mobile
5
Marketing
Source: CapitalIQ
3
Infrastructure
3
SMS/Voice
3
Enterprise
3
Advertising
2
Internet Retail
2
Virtual World
By Sector
2
Dating
2
Music
1
Vertical Communities
1
Search
1
Podcasting
1
Learning
1
Video
1
Collaboration
1
Payment
1
Financial Services
Public Company Distribution
0
5
10
15
20
25
30
35
40
45
United States
Canada
China
South Korea
Japan
Taiwan
Hong Kong
Germany
Poland
Australia
United Kingdom
By Country
Italy
Finland
Sweden
India
Russia
Malaysia
Switzerland
Valuation Dashboard – 1 Week
Market Cap EV/Revenue
Flat Flat
11%
4%
Falling
57%
Falling Rising
33% 56% Rising
39%
EV/EBITDA P/E
Flat Flat
0% 0%
Falling
48%
Rising
Falling
48%
52%
Rising
52%
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
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
Median EV/Revenue
10/12/2009
10/19/2009
10/26/2009
11/2/2009
11/9/2009
11/16/2009
11/23/2009
11/30/2009
12/7/2009
12/14/2009
12/21/2009
Median
12/28/2009
1/4/2010
1/11/2010
1/18/2010
1/25/2010
2/1/2010
2/8/2010
2/15/2010
2/22/2010
3/1/2010
Long-term average
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
average
5/10/2010
5/17/2010
well below LT
5/24/2010
5/31/2010
down slightly, still
Revenue multiples
6/7/2010
6/14/2010
6/21/2010
6/28/2010
7/5/2010
7/12/2010
7/19/2010
7/26/2010
8/2/2010
8/9/2010
383940394040404244454546464647495151515054565661616164666667646566707071707369706672727075747777787980797980798382828484
8
Source: CapitalIQ
Multiple (x )
# companies
0. 0x
5. 0x
10. 0x
15. 0x
20. 0x
25. 0x
30. 0x
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
Median EV/EBITDA
9/28/2009
10/5/2009
10/12/2009
10/19/2009
10/26/2009
11/2/2009
11/9/2009
11/16/2009
11/23/2009
11/30/2009
12/7/2009
12/14/2009
12/21/2009
Median
12/28/2009
1/4/2010
1/11/2010
1/18/2010
1/25/2010
2/1/2010
2/8/2010
2/15/2010
2/22/2010
3/1/2010
3/8/2010
L ong-term average
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
6/14/2010
week, still below LT average
EV/EBITDA multiples up this
6/21/2010
6/28/2010
7/5/2010
7/12/2010
7/19/2010
7/26/2010
8/2/2010
8/9/2010
20 21 22 22 21 21 22 23 22 24 22 23 24 25 26 26 25 24 24 26 27 30 29 32 34 34 37 40 37 38 38 38 40 42 38 38 40 42 41 40 42 41 41 42 43 44 43 44 47 49 48 51 51 50 49 48 47 46 48 49
9
Source: CapitalIQ
Multiple (x )
# companies
0. 0x
5. 0x
10. 0x
15. 0x
20. 0x
25. 0x
30. 0x
35. 0x
6/22/2009
6/29/2009
7/6/2009
Median P/E
7/13/2009
7/20/2009
7/27/2009
8/3/2009
8/10/2009
8/17/2009
8/24/2009
8/31/2009
9/7/2009
9/14/2009
9/21/2009
9/28/2009
10/5/2009
10/12/2009
10/19/2009
10/26/2009
11/2/2009
11/9/2009
11/16/2009
11/23/2009
11/30/2009
12/7/2009
12/14/2009
12/21/2009
Median
12/28/2009
1/4/2010
1/11/2010
1/18/2010
1/25/2010
2/1/2010
2/8/2010
2/15/2010
2/22/2010
3/1/2010
3/8/2010
L ong-term average
3/15/2010
3/22/2010
3/29/2010
4/5/2010
4/12/2010
4/19/2010
4/26/2010
LT average
5/3/2010
5/10/2010
5/17/2010
5/24/2010
3rd week) but still below
5/31/2010
P/E multiples tick up (for
6/7/2010
6/14/2010
6/21/2010
6/28/2010
7/5/2010
7/12/2010
7/19/2010
7/26/2010
8/2/2010
8/9/2010
19 18 18 19 18 19 19 20 20 18 18 19 19 19 20 23 24 24 23 25 25 28 26 30 30 31 32 33 33 33 35 37 39 38 38 39 39 40 41 37 39 39 40 37 37 35 33 33 32 35 35 36 35 35 35 36 32 35 34 34
10
-
5.0
10.0
15.0
20.0
25.0
30.0
35.0
# Companies 2
Virtual World
32.4
9
Social Networking
9.4
2
Infrastructure
8.9
1
Learning
7.9
4
Mobile
5.0
2
Music
4.7
6
Diversified
4.2
5
Marketing
3.8
Gaming
21
3.7
1
Search
3.6
1
3.0
1
Podcasting
2.8
Average EV/Revenue – by Sector
1
Collaboration
2.5
3
SMS/Voice
2.5
9
Media
2.3
Advertising
2.1
Internet Retail
1.9
Enterprise
1.7
Dating
1.5
Video
1.4
Financial Services
0.5
Average EV/EBITDA – by Sector
45.0
40.0 38.4
35.0
30.0
25.0
20.0
16.8
14.8
15.0 13.2
12.3 11.8 11.2
9.9
10.0 9.1
7.0 6.8
4.3
5.0
-
Diversified
Advertising
Internet Retail
Search
Enterprise
Mobile
Media
Gaming
Social Networking
Collaboration
Marketing
Dating
# Companies 1 2 3 5 6 13 2 6 1 2 1 1
Average P/E – by Sector
100.0
92.6
90.0
80.0
70.0
60.0
54.6
50.0
39.9
40.0 37.6
30.0
23.0
20.6
20.0 16.0 15.0
13.3
10.0 7.4
-
Internet Enterprise Collaboration Diversified Social Marketing Media Advertising Gaming Virtual World
Retail Networking
2 3 1 9 16 5 10 3 28 2
# Companies
13
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
38
Acc redited Members H olding C orporation
Source: CapitalIQ
Worlds . com Inc.
32 32
S oc ialG O P LC
19
T enc ent H oldings L td.
MO K O .mobi Limited
17 17
S pec trumDNA, Inc .
15
G eoS entric O yj
14
P aid Inc.
B ey ond C ommerc e, Inc .
G ree, Inc.
10 10 9
C hines e G amer International
DigitalP os t Interac tiv e, Inc .
9 8
T rans G aming, Inc .
8
L ingo Media C orporation
7
Mood Media C orporation
Ac celeriz e New Media, Inc.
Dena C o. L td.
5 5 5
HU G H E S T elematics , Inc .
F rogs ter Interac tiv e P ictures AG
C hangy ou.c om L imited
4 4 4
Mix i, Inc.
T aleo C orp.
S K C ommunic ations C o. , L td.
4 4 3
K ings oft C orporation L imited
WebMediaB rands Inc
Wiz z ard S oftware C orporation
Motricity, Inc.
S ohu. com Inc.
EV/Revenue Ranking
3 3 3 3 3
O pen T ex t C orp.
Modern T imes G roup Mtg AB
eP ro Ltd.
V elti P lc
XING AG
NE O WIZ G ames C orporation
My riad G roup AG
S c ore Media Inc.
P NI Digital Media Inc .
U O MO Media, Inc
S hutterfly, Inc.
P latforma Mediowa P oint G roup S . A.
H anbitS oft, Inc.
V alueC lic k , Inc.
H utc his on T elec ommunic ations H ong K ong H oldings L td.
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
G ungH o O nline E ntertainment, Inc .

S NAP Interac tiv e, Inc .
NeuL ion Inc orporated
S park Network s , Inc.
Accredited Members
is eemedia Inc.
revenue multiple at 38x
U nilava C orporation
Holding Co. has highest
G amania Digital E ntertainment C o. , L td.

Y D O nline C orp.
NetDragon WebS oft, Inc.
Y nk K orea Inc.
2 1 1 1 1 1 1 1 1 1
Webz en Inc.
O AO R B C Information S y s tems
AQ Interac tiv e, Inc.
O riented Media G roup B erhad
Internet G roup S A
T heS treet.c om, Inc.
P oints International L td.
IAC /InterActiveC orp.
Northgate T ec hnologies L imited
T he New Y ork T imes C ompany
AO L, Inc.
DADA S pA
U nis erv e C ommunications C orp.
U nited O nline, Inc .
C DC C orp.
G lu Mobile, Inc .
T ree.C om, Inc .
G igaMedia Ltd.
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 0
C y berplex Inc.
Actoz S oft C o., Ltd.
O penwave S y s tems Inc.
J umbuc k E ntertainment Limited
R ealNetwork s Inc.
As k net AG
G ameO n C o L td.
L ook S mart, L td.
0 0 0 0 0 0 0 0
T hwapr, Inc.
14
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
45.0
Source: CapitalIQ
S K C ommunic ations C o., Ltd.
HanbitS oft, Inc .
40.0 38.437.5
T enc ent Holdings Ltd.
36. 4
T heS treet. c om, Inc .
32. 0
T aleo C orp.
28.2
F rogs ter Interactive P ic tures AG
26.7
My riad G roup AG
20. 0
18. 4
Mixi, Inc .
G ree, Inc .
Modern T imes G roup Mtg AB
16. 716.616. 1
S hutterfly, Inc .
AQ Interac tive, Inc . 14. 614. 5
S c ore Media Inc . 12. 6
EV/EBITDA Ranking
IAC /InterAc tiveC orp.

Y D O nline C orp.
Dena C o. Ltd.
O penwave S ys tems Inc .
10. 0 9.8 9.6 9.6
O pen T ex t C orp.
DADA S pA
V elti P lc
XING AG
9.1 9.0 8.6 8.5
K ings oft C orporation Limited

the group at 38.4x
P N I Digital Media Inc .

G amania Digital E ntertainment C o., Ltd.
SK Communications leads
NetDragon WebS oft, Inc .

NE O WIZ G ames C orporation
8.3 7.8 7.8 7.6 7.5
G ungHo O nline E ntertainment, Inc .

Unis erve C ommunic ations C orp.
S park Network s , Inc .
Hutc his on T elec ommunic ations Hong K ong H oldings Ltd.
C hangy ou. c om Limited
7.3 7.3 6.8 6.7 6.7
Look S mart, Ltd.

S ohu.c om Inc .
V alueC lic k , Inc .
6.5 6.2 6.1
C DC C orp.
5.5
T he New Y ork T imes C ompany

C y berplex Inc .
United O nline, Inc .
4.4 4.3 3.7
AO L, Inc .
2.4
Ac toz S oft C o., Ltd.

1.6
J umbuc k E ntertainment Limited

G ameO n C o Ltd.
T hwapr, Inc .
0.6 0.4 0.0
Excluding EV/EBITDA > 100x
15
Source: CapitalIQ
0.0
20.0
40.0
60.0
80.0
100.0
120.0
eP ro Ltd.
S hutterfly , Inc .
97.2 96.3
P oints International Ltd.
62.8
Mix i, Inc .
56.3
P/E Ranking
T encent Holdings Ltd.
C DC C orp.
47.4 47.0
O pen T ex t C orp.
40.2
G ree, Inc.
N etDragon WebS oft, Inc.

33. 5 33.5
G amania Digital E nterta inment C o., L td.
F rogs ter Interactive P ictures AG

30.3 30.2
V elti P lc
25.9 24. 6
Dena C o. Ltd.
Hutc his on T elecommunica tions Hong K ong H oldings L td.

20.7 20.6
NE O WIZ G a mes C orporation

P/E at 97.2x
DADA S pA
ePro has the highest
T he N ew Y ork T imes C ompa ny
V alueC lic k , Inc.
S ohu.com Inc.
17.0 17.0 16.5 15. 1 14.9
C y berplex Inc.
K ings oft C orporation L imited

14.3 13.8
AO L, Inc.
C hangy ou.c om L imited

10.8 9.9
United O nline, Inc.

9. 1
G ameO n C o Ltd.
8.2
Ngi G roup Inc.

7.7
Unis erv e C ommunica tions C orp.

5.1
J umbuck E ntertainment Limited

3.5
Neteas e.com Inc.

2.7
S ha nda Interactiv e E nterta inment Ltd.

2.0
G ia nt Interac tive G roup, Inc.

1.9
16
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
8/3/2009
8/10/2009
8/17/2009
8/24/2009
8/31/2009
9/7/2009
9/14/2009
9/21/2009
9/28/2009
10/5/2009
10/12/2009
10/19/2009
10/26/2009
11/2/2009
11/9/2009
11/16/2009
11/23/2009
11/30/2009
12/7/2009
12/14/2009
12/21/2009
12/28/2009
Total Market Capitalization
1/4/2010
1/11/2010
1/18/2010
1/25/2010
2/1/2010
2/8/2010
2/15/2010
2/22/2010
3/1/2010
3/8/2010
3/15/2010
3/22/2010
3/29/2010
4/5/2010
4/12/2010
4/19/2010
4/26/2010
5/3/2010
5/10/2010
5/17/2010
index
5/24/2010
5/31/2010
6/7/2010
in our Web 2.0
103 companies
6/14/2010
at $86.5 bn with
Total market cap
now represented
6/21/2010
6/28/2010
7/5/2010
7/12/2010
7/19/2010
7/26/2010
96 96 96 96 96 96 96 96 96 96 97 97 97 97 97 97 97 98 98 98 98 98 98 98 98 98 98 98 98 99100100100100100100100100100100100100101101101101102102102101102102
17
-
# Companies
5,000.0
10,000.0
15,000.0
20,000.0
25,000.0
30,000.0
35,000.0
40,000.0
45,000.0
9
Diversified
Gaming
28
Media
10
Social Networking
16
6
Mobile
1
Collaboration
3
Enterprise
5
Marketing
2
Internet Retail
1
Search
Total Market Cap – by Sector
3
SMS/Voice
1
Financial Services
2
Dating
2
Music
3
Advertising
2
Virtual World
1
Video
$40 bn in market cap
1
Payment
Nine Diversified companies totaling
Podcasting
3
Infrastructure
1
Learning
18
0
1,000
2,000
3,000
4,000
5,000
6,000
Tencent Holdings Ltd.
Frogster Interactive Pictures AG
Netease.com Inc.
Dena Co. Ltd.
Source: CapitalIQ
IAC/InterActiveCorp.
Shanda Interactive Entertainment Ltd.
AOL, Inc.
Open Text Corp.
GeoSentric Oyj
Sohu.com Inc.
Giant Interactive Group, Inc.
Changyou.com Limited
Perfect World Co., Ltd.
The New York Times Company
GungHo Online Entertainment, Inc.
Taleo Corp.
ValueClick, Inc.
Chinese Gamer International
NEOWIZ Games Corporation
Shutterfly, Inc.
SK Communications Co., Ltd.
United Online, Inc.
RealNetworks Inc.
Hutchison Telecommunications Hong
Motricity, Inc.
Velti Plc
NetDragon WebSoft, Inc.
Gree, Inc.
Myriad Group AG
CDC Corp.
Gamania Digital Entertainment Co., Ltd.
XING AG
MOKO.mobi Limited
Market Cap Ranking
OAO RBC Information Systems

Openwave Systems Inc.
The9 Limited
GigaMedia Ltd.
AQ Interactive, Inc.
Points International Ltd.
Webzen Inc.
TheStreet.com, Inc.
DADA SpA
Thwapr, Inc.
Paid Inc.
Actoz Soft Co., Ltd.
Tree.Com, Inc.
Score Media Inc.
HUGHES Telematics, Inc.
Spark Networks, Inc.
Mood Media Corporation
Platforma Mediowa Point Group S.A.
PNI Digital Media Inc.
NeuLion Incorporated
YD Online Corp.
Cyberplex Inc.
Ngi Group Inc.
Quepasa Corp.
Gravity Co., Ltd
TransGaming, Inc.
Glu Mobile, Inc.
DigitalTown, Inc.
ePro Ltd.
WebMediaBrands Inc
LookSmart, Ltd.
Multiplied Media Corporation
Socialwise, Inc.
dominates group
Asknet AG
Accredited Members Holding
Ynk Korea Inc.
Yippy, Inc.
NeXplore Corporation
Accelerize New Media, Inc.
Tencent’s $36.2 bn market cap
Northgate Technologies Limited

Moggle, Inc
Wizzard Software Corporation
iseemedia Inc.
Dolphin Digital Media, Inc.
En2Go International, Inc.
VOIS, Inc.
DigitalPost Interactive, Inc.
SocialGO PLC
Kent International Holdings Inc.
SNAP Interactive, Inc.
Unilava Corporation
Jumbuck Entertainment Limited
Modern Times Group Mtg AB
Worlds.com Inc.
Beyond Commerce, Inc.
IAS Energy, Inc.
SpectrumDNA, Inc.
Uniserve Communications Corp.
Kiwibox.Com, Inc.
Oriented Media Group Berhad
Mobile Data Corp.
Internet Group SA
UOMO Media, Inc
LiveWorld Inc.
Lingo Media Corporation
Kingsoft Corporation Limited
GameOn Co Ltd.
HanbitSoft, Inc.
Price Performance – 1 Week
• Distinctly negative price momentum,
with 49% of stocks falling over the past Price Momentum
week (after 48% of stocks declines last
week, and 51% declined the week
Flat
prior).
16%
• The market has generally seen more
decliners than risers over the past two
months with an average of two to three
down weeks per up week. Falling
49%
Rising
35%
Average Price Performance – 1 Week, by Sector
25.0% 22.9% Virtual World sector shows

19.7% highest weekly returns
20.0%
15.3%
15.0% 13.2%
9.2%
10.0%
4.4%
5.0%
0.8% 0.4% 0.0% 0.0%
0.0%
-0.4% -0.9% -0.9% -1.1% -1.1%
-1.6%
-5.0% -2.7% -3.1%
-4.4%
-10.0% -7.3% -7.8%
-9.9%
-15.0%
Internet Retail
Infrastructure
Virtual World
Networking
Collaboration
Financial
Payment
Communities
Advertising
Learning
Music
Diversified
Marketing
Podcasting
Search
Dating
Gaming
Mobile
Enterprise
Services
Media
Video
SMS/Voice
Social
Vertical
Source: CapitalIQ
21
-50.0%
0.0%
50.0%
100.0%
150.0%
200.0%
250.0%
YIPI
KIWB
WSE:IGR
UNLA
UNTD
Source: CapitalIQ
ACLZ
IEE
OMEDIA
OPWV
QPSA
RNWK
TSXV:MMC
TSXV:LM
TSE:3632
2121
6180
KOSE:A069080
NYT
VCLK
SEHK:8086
GLUU
SFLY
TSCM
GIGM
3888
TSX:NLN
GTSM:3083
MOTR
3765
A023770
777
3812
WEBM
TSX:MM
CHIN.A
CM:DA
TREE
TSXV:TNG
TSX:PTS
TSXV:PN
A047080
CYOU
TSE:2432
MTG B
OTEX
2497
O1BC
LOOK
GA
Price Performance – 1 Week
LOV
DPDM
DB:M0C
SPXA
STVI
KNTH
TSX:SCR
A066270
ASX:JMB
TSXV:USS
GEO1V
UOMO
WSE:PGM
DGTW
ACCM
NXPC
HUTC
TLEO
NCTY
IASC.A
IACI
A052770
A052790
700
A095660
NTES
3838
DGLP
FRG
TSX:CX
XTRA:A5A
SNDA
SCLW
GRVY
RBCI
PWRD
SOHU
AOL
VOIS
MYRN
WZE
BYOC
AIM:SGO
VEL
THWI
MKB
SEHK:215
590057
WDDD
PAYD
LVWD
MBYL
ETGI
22
0%
20%
40%
60%
80%
100%
120%
0%
50%
100%
150%
200%
250%
300%
En2Go
ePro Ltd.
International, Inc.
Beyond Commerce,
Mobile Data Corp.
Source: CapitalIQ
Inc.
Hutchison
Telecommunications
GeoSentric Oyj
Hong Kong Holdings
Ltd.
MOKO.mobi
AQ Interactive, Inc.
Limited
LookSmart, Ltd. The9 Limited
6 Month
1 Month
Velti Plc Sohu.com Inc.
Hutchison
Telecommunication
Gree, Inc.
s Hong Kong
Holdings Ltd.
SK Communications
Netease.com Inc.
Co., Ltd.
Frogster Interactive SNAP Interactive,

Pictures AG Inc.
Points International
TransGaming, Inc.
Ltd.
Price Performance (Top 10)
0%
20%
40%
60%
80%
100%
120%
140%
160%
0%
500%
1000%
1500%
2000%
2500%
3000%
3500%
OAO RBC
Information Mobile Data Corp.
Systems
En2Go International,
ePro Ltd.
Inc.
Yippy, Inc. Velti Plc
AQ Interactive, Frogster Interactive

Inc. Pictures AG
Hutchison
Telecommunications
Velti Plc
Hong Kong Holdings
1 Year
Ltd.
3 Month
Quepasa Corp. Myriad Group AG
Uniserve
Communications Netease.com Inc.
Corp.
Dena Co. Ltd. Gree, Inc.
TransGaming,
HanbitSoft, Inc.
Inc.
Score Media Inc. IAC/InterActiveCorp.

23
-40.0%
-35.0%
-30.0%
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
-80.0%
-70.0%
-60.0%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
UOMO Media, Quepasa
Inc Corp.
Dolphin Digital Openwave
Source: CapitalIQ
Media, Inc. Systems Inc.
En2Go
iseemedia
International,
Inc.
Inc.
Oriented
iseemedia Inc. Media Group
Berhad
Accelerize
Lingo Media
New Media,
Corporation
Inc.
1 Week
6 Month
Kiwibox.Com, United Online,
Inc. Inc.
Unilava
VOIS, Inc.
Corporation
Unilava Internet
Corporation Group SA
SpectrumDNA, Kiwibox.Com,
Inc. Inc.
Yippy, Inc. Yippy, Inc.

-80.0%
-70.0%
-60.0%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
Price Performance (Bottom 10)
-100.0%
-90.0%
-80.0%
-70.0%
-60.0%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
Wizzard Kiwibox.Com,
Software Inc.
Corporation
UOMO Media,
Internet Group
Inc
SA
HUGHES
NeuLion Telematics,
Incorporated Inc.
LiveWorld Inc.
Cyberplex Inc.
Unilava
Moggle, Inc Corporation
1 Year
1 Month
Beyond
Dolphin Digital Commerce,
Media, Inc. Inc.
IAS Energy, SpectrumDNA,

Inc. Inc.
SpectrumDNA,
iseemedia Inc.
Inc.
Beyond
Commerce, VOIS, Inc.
Inc.
UOMO Media,
Yippy, Inc.
Inc
Capital Market Activity (Financing, M&A)
Capital Market Activity – Current Month
Trans ac tions - C urrent Month (US $ m)
Fin. Amount (Million) Type of financing
Month C ompany Name C ountry S ec tor Ac quis ition Angel/S eed S eries A S eries B S eries C S eries D S eries E NA G rand Total
Aug-10 S lide US A W idget 182. 0 182. 0
Tuenti S pa in S ocia l Networks 99. 0 99. 0
J ambool US A V irtua l G oods 70. 0 70. 0
Tudou C hina V ideo 50. 0 50. 0
Inves topedia US A Media 42. 0 42. 0
Unoh J a pa n G a ming 29. 0 29. 0
AdMeld Inc . US A Advertis ing 15. 0 15. 0
eXelate US A Advertis ing 15. 0 15. 0
YouS endIt US A C olla bora tion 15. 0 15. 0
P ayfone US A Mobile P a yment 11. 0 11. 0
UltiZen C hina G a ming 8. 0 8. 0
R edbeac on US A C la s s ified 7. 4 7. 4
zulily US A S ocia l C ommerce 6. 0 6. 0
My Damn C hannel US A Media 4. 4 4. 4
W eS hop US A S ocia l C ommerce 4. 3 4. 3
P layON! S ports US A V ideo 2. 8 2. 8
S upers onicAds UK Advertis ing 2. 0 2. 0
S tatus Net C ana da Microblog 1. 3 1. 3
R apportive US A S ocia l Networks 1. 0 1. 0
B ringMeTheNews US A Aggrega tion 1. 0 1. 0
E mbed.ly US A W idget 0. 3 0. 3
Aug-10 Total 422.0 1.0 15.2 39.2 23.0 15.0 50.0 1.0 566.4
Capital Market Activity – Current Month, by Sector
$ Raised # Deals
Virtual Goods
9% Virtual Goods
10%
Social
Networks
12%
Social
Networks
20%
Other
50%
Other
56%
Widget
23%
Widget
20%
Financing Activity
A return to trend level

1000.0 18.0
financing activity after a 16.7
900.0 record July
16.0
800.0 13.4 14.0
700.0 12.1
12.0
600.0 10.1
9.6 10.0
9.0
(US$m)
(US$m)
500.0 8.3 8.1
7.2 8.0
400.0 6.3 6.5
5.6 5.5
6.0
300.0
4.0
200.0
100.0 2.0
0.0 0.0
Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10
*Dec-09 includes $180m Zynga investment

Apr-10 includes $300m DST investment
Total Average per Deal LTM Total Average
Jun-10 includes $147m Zynga investment
28
(US$m)
0.0
200.0
400.0
600.0
800.0
1,000.0
1,200.0
# companies
Gaming
Advertising
17 27
4
Search
1
Diversified
9
Media
4
Widget
Social Commerce
Social Networks
12 12
Analytics
11
5
Enterprise
2
Virtual Goods
5
Internet Retail
5
Video
3
Collaboration
1
Blog
7
Mobile
1
Music
4
Location-based SNS
4
Infrastructure
2
SMS/Voice
Advertising as the
Gaming overtakes
4
(17 deals, $1,142 mm)
Comment/Reputation
biggest area of interest
in the past three months
Mobile Ad
1
Visual Commerce
1
Mobile Payment
2
Financial Services
1
Virtual World
4
Aggregation
3
1
Classified
1
Online Auction
Capital Market Activity Ranking – by Sector, last three months
Travel
1
Publishing
1
Microblog
29
(US$ mm)
0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
800.0
Jan-08
Feb-08
Mar-08
Apr-08
May-08
Jun-08
Jul-08
Aug-08
Sep-08
Oct-08
Nov-08
Dec-08
Jan-09
Social Networks
Feb-09
Mar-09
Gaming
Apr-09
May-09
$ Raised
Jun-09
Advertising
Jul-09
Aug-09
Video
Sep-09
Oct-09
Nov-09
Diversified
Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-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
75% of financing comes from Top 5 sectors Aug-08

Sep-08
Oct-08
Nov-08
Advertising
Dec-08
Jan-09
Feb-09
Mar-09
Social Networks
Apr-09
May-09
Jun-09
Gaming
Jul-09
# Deals
Aug-09
Sep-09
Virtual World
Oct-09
Nov-09
Video
Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
Top 5 sectors average $175 mm & 16 deals per month (aggregate)
May-10
Jun-10
Jul-10
Aug-10
Top 10 (2010 YTD)
Financing Acquisitions
800.0 900
688.0 800 763.0

700.0
700.0
700
600.0 644.9
600
500.0
500
400.0
400
300.0
250.0
300
200.0 225.0
200 187.5 182.0
135.0 161.5 160.0
142.0 126.5
100.0 60.0 50.0 50.0 50.0 44.0 40.0 38.5 100
0.0
0
Technologies
Zynga
Tudou
LivingSocial
Groupon
Atlassian
Glam Media
Tremor Media
Squarespace
Qiyi
Digital Sky
Alloy
infoGROUP
ITA Software
Turbine
Playdom
Exalead
ICQ
Slide
Jigsaw
Siri
DST soars to top with almost $700 million in financing this year
Upcoming Events/Earnings
E arnings C alendar
Company Date / Time Quarter Conf Call Details
Giant Interactive Group, Inc. (NYSE:GA) Aug-10, 2010 9:00 PM Q2/10 866-356-3093
CDC Corp. (NasdaqGS:CHIN.A) Aug-10, 2010 8:30 PM Q2/10 888-603-6873, passcode: 91985167
Points International Ltd. (TSX:PTS) Aug-10, 2010 5:00 PM Q2/10 877-941-8418
XING AG (XTRA:O1BC) Aug-11, 2010 4:00 AM Q2/10 49-0-6103-485-3002
Tencent Holdings Ltd. (SEHK:700) Aug-11, 2010 8:00 AM Q2/10 866-369-4113
PNI Digital Media Inc. (TSXV:PN) Aug-11, 2010 4:30 PM Q3/10 888-300-8196, passcode: 88463806
WebMediaBrands Inc (NasdaqGS:WEBM) Aug-11, 2010 5:00 PM Q2/10 866-288-9872, passcode: 713481
Spark Netw orks, Inc. (AMEX:LOV) Aug-12, 2010 4:30 PM Q2/10 888-215-6895, passcode: 4394412
Cyberplex Inc. (TSX:CX) Aug-12, 2010 4:30 PM Q2/10 888-892-3255
Perfect World Co., Ltd. (NasdaqGS:PWRD) Aug-17, 2010 7:00 AM Q2/10 866-519-4004, passcode: PWRD
Open Text Corp. (NasdaqGS:OTEX) Aug-18-2010 5:00 PM Q4/10 416-644-3414
NetDragon WebSoft, Inc. (SEHK:777) Aug-19-2010 8:00 AM Q2/10 866-831-5605, passcode: 34088977
Netease.com Inc. (NasdaqGS:NTES) Aug-19-2010 9:00 PM Q2/10 877-941-2068
The9 Limited (NasdaqGS:NCTY) Aug-24-2010 9:00 PM Q2/10 866-788-0538, passcode: 37936166
GigaMedia Ltd. (NasdaqGS:GIGM) Aug-26-2010 7:30 AM Q2/10 http://w w w .gigamedia.com
Source: CapitalIQ
Public Company Listing
T rading C urre nt US $ Mark e t
C om pany Nam e T ic k e r Exc hange C urre ncy HQ Pric e C ap (m m ) Em ploye e s
A ccelerize New M edia, Inc. A CLZ OTCB B USD United States 0.48 15.0 10
A ccredited M embers Holding Co rpo ratio n A CCM OTCB B USD United States 0.65 19.0 8
A cto z So ft Co., Ltd. A 052790 KOSE KRW So uth Ko rea 9,990 76.5 NA
A OL, Inc. A OL NYSE USD United States 22.61 2,413.5 6,700
A Q Interactive, Inc. 3838 TSE JP Y Japan 163,400 103.8 NA
A sknet A G XTRA :A 5A XTRA EUR Germany 3.17 21.2 NA
B eyo nd Commerce, Inc. B YOC OTCB B USD United States 0.06 4.0 16
CDC Co rp. CHIN.A NasdaqGS USD Ho ng Ko ng 1.98 209.1 2,810
Changyou.co m Limited CYOU NasdaqGS USD China 29.36 1,514.0 1,308
Chinese Gamer Internatio nal GTSM :3083 GTSM TWD Taiwan 272.50 739.3 NA
Cyberplex Inc. TSX:CX TSX CA D Canada 0.64 45.3 NA
DA DA SpA CM :DA CM EUR Italy 4.17 89.4 NA
Dena Co. Ltd. TSE:2432 TSE JP Y Japan 2,389 3,965.6 NA
DigitalP o st Interactive, Inc. DGLP OTCB B USD United States 0.05 8.2 6
DigitalTo wn, Inc. DGTW OTCB B USD United States 1.15 32.1 4
Do lphin Digital M edia, Inc. DP DM OTCB B USD United States 0.15 9.3 NA
En2Go International, Inc. ETGI OTCB B USD United States 0.38 9.1 NA
eP ro Ltd. SEHK:8086 SEHK HKD Ho ng Ko ng 0.68 29.4 707
Fro gster Interactive P ictures A G FRG XTRA EUR Germany 25.50 10,138.4 NA
Gamania Digital Entertainment Co ., Ltd. 6180 GTSM TWD Taiwan 48.25 201.4 NA
GameOn Co Ltd. 3812 TSE JP Y Japan 66,000 0.3 NA
Geo Sentric Oyj GEO1V HLSE EUR Finland 0.03 2,033.2 130
Giant Interactive Gro up, Inc. GA NYSE USD China 6.76 1,535.8 1,575
GigaM edia Ltd. GIGM NasdaqGS USD Taiwan 2.04 112.9 NA
Glu M o bile, Inc. GLUU NasdaqGM USD United States 1.19 36.7 479
Gravity Co ., Ltd GRVY NasdaqGM USD So uth Ko rea 1.57 43.6 455
Gree, Inc. TSE:3632 TSE JP Y Japan 6,580 237.4 NA
GungHo Online Entertainment, Inc. 3765 OSE JP Y Japan 177,500 1,231.3 NA
HanbitSo ft, Inc. A 047080 KOSE KRW So uth Ko rea 4,820 0.1 NA
HUGHES Telematics, Inc. HUTC OTCB B USD United States 2.00 68.3 276
Hutchiso n Telecommunicatio ns Hong Kong SEHK:21
Ho ldings
5 Ltd. SEHK HKD Ho ng Ko ng 2.20 338.4 1,732
IA C/InterA ctiveCo rp. IA CI NasdaqGS USD United States 25.11 2,626.4 3,200
IA S Energy, Inc. IA SC.A OTCP K USD Canada 0.05 3.5 NA
Internet Gro up SA WSE:IGR WSE P LN P o land 0.72 1.7 NA
iseemedia Inc. IEE TSXV CA D Canada 0.07 9.5 NA
Jumbuck Entertainment Limited A SX:JM B A SX A UD A ustralia 0.20 6.2 79
Kent International Ho ldings Inc. KNTH OTCP K USD United States 1.90 6.8 NA
Public Company Listing cont.
T r ading 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
Kingso ft Co rpo ratio n Limited 3888 SEHK HKD China 4.38 0.4 2,735
Kiwibo x.Co m, Inc. KIWB OTCB B USD United States 0.01 3.0 6
Lingo M edia Co rpo ratio n TSXV:LM TSXV CA D Canada 0.42 0.9 NA
LiveWo rld Inc. LVWD OTCP K USD United States 0.03 0.9 NA
Lo o kSmart, Ltd. LOOK NasdaqGM USD United States 1.53 26.3 65
M ixi, Inc. 2121 TSE JP Y Japan 447,500 0.0 NA
M o bile Data Co rp. M B YL OTCB B USD United States 0.10 2.3 NA
M o dern Times Gro up M tg A B M TG B OM SEK Sweden 459.50 5.6 2,936
M o ggle, Inc DB :M 0C DB EUR United States 0.85 13.5 2
M OKO.mo bi Limited M KB A SX A UD A ustralia 0.09 170.0 NA
M o o d M edia Co rpo ratio n TSX:M M TSX CA D Canada 1.76 63.6 NA
M o tricity, Inc. M OTR NasdaqGM USD United States 7.87 315.2 353
M ultiplied M edia Co rpo ratio n TSXV:M M C TSXV CA D Canada 0.10 25.9 NA
M yriad Gro up A G M YRN SWX CHF Switzerland 4.97 230.6 778
NEOWIZ Games Co rpo ratio n A 095660 KOSE KRW So uth Ko rea 37,600 683.8 NA
NetDrago n WebSo ft, Inc. 777 SEHK HKD China 3.66 248.1 2,901
Netease.co m Inc. NTES NasdaqGS USD China 39.60 5,142.2 4,624
NeuLio n Inco rpo rated TSX:NLN TSX CA D Canada 0.43 48.9 224
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 31,050 45.1 NA
No rthgate Techno lo gies Limited 590057 B SE INR India 18.60 14.0 NA
OA O RB C Info rmatio n Systems RB CI M ICEX RUB Russia 36.00 162.8 2,523
Open Text Co rp. OTEX NasdaqGS USD Canada 39.36 2,234.9 3,700
Openwave Systems Inc. OP WV NasdaqGS USD United States 1.82 152.6 NA
Oriented M edia Gro up B erhad OM EDIA KLSE M YR M alaysia 0.07 3.0 NA
P aid Inc. P A YD OTCB B USD United States 0.29 79.0 20
P erfect Wo rld Co ., Ltd. P WRD NasdaqGS USD China 26.01 1,314.8 2,896
P latfo rma M edio wa P o int Gro up S.A . WSE:P GM WSE P LN P o land 1.44 49.8 NA
P NI Digital M edia Inc. TSXV:P N TSXV CA D Canada 1.48 49.4 NA
P o ints Internatio nal Ltd. TSX:P TS TSX CA D Canada 0.68 99.2 93
Quepasa Co rp. QP SA OTCB B USD United States 3.45 44.7 71
RealNetwo rks Inc. RNWK NasdaqGS USD United States 2.88 389.5 1,754
Sco re M edia Inc. TSX:SCR TSX CA D Canada 0.91 72.1 230
Shanda Interactive Entertainment Ltd. SNDA NasdaqGS USD China 42.66 2,533.1 5,721
Shutterfly, Inc. SFLY NasdaqGS USD United States 23.97 653.7 519
SK Co mmunicatio ns Co ., Ltd. A 066270 KOSE KRW So uth Ko rea 17,900 636.0 NA
Public Company Listing cont.
T r ading C urr e nt US $ Mar k e t
C om pany Nam e T ick e r Exc hange C urr e ncy HQ Price C ap (m m ) Em ploye e s
SNA P Interactive, Inc. STVI OTCB B USD United States 0.20 6.6 15
So cialGO P LC A IM :SGO A IM GB P United Kingdo m 0.01 7.2 9
So cialwise, Inc. SCLW OTCB B USD United States 0.47 23.5 NA
So hu.co m Inc. SOHU NasdaqGS USD China 50.56 1,912.8 3,997
Spark Netwo rks, Inc. LOV A M EX USD United States 3.25 66.9 155
SpectrumDNA , Inc. SP XA OTCB B USD United States 0.05 3.5 8
Taleo Co rp. TLEO NasdaqGM USD United States 25.62 1,018.7 916
Tencent Ho ldings Ltd. 700 SEHK HKD China 153.70 36,187.5 7,845
The New Yo rk Times Co mpany NYT NYSE USD United States 8.71 1,270.7 7,665
The9 Limited NCTY NasdaqGS USD China 5.42 138.3 1,010
TheStreet.co m, Inc. TSCM NasdaqGM USD United States 2.94 93.0 274
Thwapr, Inc. THWI OTCB B USD United States 5.00 82.9 NA
TransGaming, Inc. TSXV:TNG TSXV CA D Canada 0.64 37.1 28
Tree.Co m, Inc. TREE NasdaqGM USD United States 6.81 73.8 700
Unilava Co rpo ratio n UNLA OTCB B USD United States 0.06 6.2 40
Uniserve Co mmunicatio ns Co rp. TSXV:USS TSXV CA D Canada 0.11 3.1 NA
United Online, Inc. UNTD NasdaqGS USD United States 5.50 480.0 1,699
UOM O M edia, Inc UOM O OTCB B USD Canada 0.02 1.3 NA
ValueClick, Inc. VCLK NasdaqGS USD United States 10.60 862.0 1,086
Velti P lc VEL A IM GB P United Kingdo m 4.70 281.2 459
VOIS, Inc. VOIS OTCB B USD United States 0.00 8.2 2
WebM ediaB rands Inc WEB M NasdaqGS USD United States 0.71 26.6 83
Webzen Inc. KOSE:A 069080 KOSE KRW So uth Ko rea 9,400.00 96.1 326
Wizzard So ftware Co rpo ratio n WZE A M EX USD United States 0.20 13.2 80
Wo rlds.co m Inc. WDDD OTCB B USD United States 0.09 5.0 1
XING A G O1B C XTRA EUR Germany 28.80 196.7 293
YD Online Co rp. A 052770 KOSE KRW So uth Ko rea 3,590.00 46.5 NA
Yippy, Inc. YIP I OTCB B USD United States 0.80 18.2 NA
Ynk Ko rea Inc. A 023770 KOSE KRW So uth Ko rea 2,700.00 18.6 NA
Yo uB last Glo bal, Inc. YB LT OTCB B USD United States 0.39 13.4 6
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
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Web 2.

David Shore, CFA, MBA 416.860.6784

Web 2.0 Public Companies Total Median Max Min

G ungH o O nline E ntertainment, Inc .

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

IAC /InterAc tiveC orp.

K ings oft C orporation Limited

P N I Digital Media Inc .

NetDragon WebS oft, Inc .

G ungHo O nline E ntertainment, Inc .

Look S mart, Ltd.

T he New Y ork T imes C ompany

Ac toz S oft C o., Ltd.

J umbuc k E ntertainment Limited

T encent Holdings Ltd.

N etDragon WebS oft, Inc.

F rogs ter Interactive P ictures AG

C hines e G amer International

Hutc his on T elecommunica tions Hong K ong H oldings L td.

NE O WIZ G a mes C orporation

T he N ew Y ork T imes C ompa ny

V alueC lic k , Inc.

K ings oft C orporation L imited

C hangy ou.c om L imited

United O nline, Inc.

Ngi G roup Inc.

Unis erv e C ommunica tions C orp.

J umbuck E ntertainment Limited

Neteas e.com Inc.

S ha nda Interactiv e E nterta inment Ltd.

G ia nt Interac tive G roup, Inc.

OAO RBC Information Systems

Northgate Technologies Limited

25.0% 22.9% Virtual World sector shows

LookSmart, Ltd. The9 Limited

Velti Plc Sohu.com Inc.

Frogster Interactive SNAP Interactive,

Yippy, Inc. Velti Plc

AQ Interactive, Frogster Interactive

Quepasa Corp. Myriad Group AG

Dena Co. Ltd. Gree, Inc.

Score Media Inc. IAC/InterActiveCorp.

Dolphin Digital Openwave

Yippy, Inc. Yippy, Inc.

IAS Energy, SpectrumDNA,

A return to trend level

800.0 13.4 14.0

*Dec-09 includes $180m Zynga investment

75% of financing comes from Top 5 sectors Aug-08

688.0 800 763.0

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Web 2.0 Weekly - Aug. 10, 2010: "Consolidation by Google"

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