09 07 14 Web 2.0 Weekly

SOFTWARE & SERVICES 14 JULY 2009
DAVID SHORE, CFA, MBA 416.860.6784
WEB 2.O WEEKLY david.shore@researchcapital.com
Arun Thomas (Associate) 416.860.7666

PANDO RA RAISES $35 MILLION POST RO YALTY AG REEMENT
N EW R O YA L T Y AG R E EM E NT F OR W E B CA ST IN G A ND C O P YR IG HT F IR MS
SoundExchange, a non-profit royalty collecting organization associated with the Recording Industry Association of
America (RIAA), agreed this past week to a new deal regarding royalty rates for webcasting. Under the new
agreement, large commercial webcasters will pay up to 25% of their revenue to copyright holders – well below the
70% that could have been imposed under an earlier deal. W hile the deal was initially agreed to by three smaller
Internet radio webcasters, Pandora Media, the third largest radio site (according to Alexa), also indicated that it would
sign on to the agreement.
Online Media companies lead financing: Two online media companies, Pandora (Internet Radio) and QuickPlay
(Mobile Video), have secured the largest financing transactions thus far in July ($35 million and $12 million,
respectively). Total capital raised so far in July is $66.1 million through eight transactions, averaging $8.3 million per
transaction. June closed with $180 million in financing on 36 transactions. The averages for the months of May
(excluding the Facebook transaction) and June were $6.4 million and $4.7 million, respectively.

Financing Activity Last Three Months

200.0 9.0

8.3
180.0 8.0

160.0
7.0
6.4
140.0
6.0

120.0

5.0
(US$m)

(US$m)
4.7
100.0

4.0

80.0

3.0
60.0

2.0
40.0

20.0 1.0

0.0 0.0
May-09 (excl FB) Jun-09 Jul-09

Total Average

A w eak price performance week: The companies in our universe had weak stock price performances over the past
week (for stocks with prices greater than $1) (Figure 6), with 30 companies showing negative returns on the week.
Gravity (NasdaqGM:GRVY) led the group with a 33% return, while GungHo (3765-OSE) had the worst return,
dropping 26.4% in the week.

This report has been created b y Anal ysts that are emplo yed b y Research Capital Corporation, a Canadian Investment Dealer.
For further disclosures, please see last page of this report.
w w w . r e s e a rc h c a p i t a l . c o m
T o ro n t o 4 1 6 . 8 6 0 . 7 6 0 0 Montreal 514.399.1500 Vancouver 604.662.1800 Calgary 403.265.7400 Regina 306.566.7550

THE WEB 2.0 UNIVERSE
Ninety two public Web 2.0 companies identified: Our W eb 2.0 universe contains 92 companies, with a combined market
cap of ~$52.5 billion (Figure 1). The average market cap for the group is ~$584 million (but a median of only $50.0
million), with average trailing revenue of $153.8 million (median $53.6 million). The companies are also generally
profitable, with a median EBITDA margin of 13.2%. On a valuation basis, the overall average is 5.3x trailing revenue
(median 1.6x) and 9.2x trailing EBITDA (median 9.2x). Twenty of the companies have more than 500 employees.
C omparable C ompany Analys is > Web 2.0
Trading C urrent US D Market US D L TM Total US D L TM Total E B ITDA TE V/L TM TE V/L TM
C ompany Name L TM as of Ticker E xc hange C urrency HQ P rice C ap ($m) R ev ($m) E B ITDA ($m) % R evenue E B ITDA E mployees
Accelerize New Media , Inc. 3/31/2009 AC LZ OT C B B US D United S ta tes 0. 55 15. 2 4. 1 (4.4) NM 4. 9x - 11
Actoz S oft C o. , Ltd. 3/31/2009 A052790 K OS E KR W S outh K orea 25,800 169. 8 88. 2 19. 2 21. 7% 1. 6x 7. 4x NA
AQ Interactive, Inc. 3/31/2009 3838 TS E JPY J a pan 55,200 32. 4 66. 8 4.2 6.3% 0. 0x 0. 6x NA
As s ociated Media Holdings Inc. 6/30/2007 AS MH OT C P K US D United S ta tes 0. 02 0.9 0. 1 (2.3) NM 19.2x - 3
B igs tring C orp. 3/31/2009 BS GC OT C B B US D United S ta tes 0. 04 2.1 0. 1 (2.0) NM 48.3x - 4
B eta wave C orporation 3/31/2009 B W AV OT C B B US D United S ta tes 0. 09 2.6 8. 4 (12. 6) NM - - 53
B eyond C ommerce, Inc. 3/31/2009 B Y OC OT C B B US D United S ta tes 0. 40 18. 0 7. 1 (9.5) NM 3. 2x - 69
B right T hings plc 9/30/2008 AIM: B G T AIM GBP United K ingdom 0. 01 4.1 0. 3 (1.8) NM 15.2x - 9
B roa dW ebAs ia Inc. 9/30/2008 BWBA OT C P K US D United S ta tes 0. 23 19. 5 0. 0 (4.6) NM - - 46
C DC C orp. 3/31/2009 C HIN. A Na s daqG S US D Hong K ong 1. 42 150. 7 389.9 30. 8 7.9% 0. 4x 5. 3x 2, 227
C hangyou. com L imited 3/31/2009 C Y OU Na s daqG S US D C hina 37. 61 2,068. 6 222.5 135.1 60. 7% 8. 5x 13. 9x 628
C hina G a teway C orporation 9/30/2008 CGWY OT C P K US D United S ta tes 0. 02 0.3 6. 7 (6.6) -98. 9% 0. 0x - 37
C hines e G amer Interna tiona l 3/31/2009 G T S M: 3083 GTS M TWD T aiwa n 430 1,089. 6 55. 7 31. 2 56. 0% 18.4x 32. 9x NA
C LIC K E R Inc. 2/28/2009 C LK Z OT C B B US D United S ta tes 0. 02 1.3 7. 2 2.4 34. 1% 0. 1x 0. 3x 22
C ornerW orld C orpora tion 1/31/2009 CWR L OT C B B US D United S ta tes 0. 06 3.9 1. 3 NM NM 4. 1x - NA
C yberplex Inc. 3/31/2009 T S X :C X TS X C AD C anada 2 88. 9 70. 3 7.3 10. 3% 1. 2x 11. 7x NA
DADA S pA 3/31/2009 C M: DA CM E UR Italy 6. 15 139. 1 234.4 34. 3 14. 6% 0. 8x 5. 5x 578
DXN Holdings B hd 2/28/2009 DX N K LS E MY R Ma la ys ia 0. 35 22. 4 76. 8 10. 6 13. 8% 0. 5x 3. 4x NA
Dibz International, Inc. NA DIB Z OT C P K US D United S ta tes 0. 00 0.0 NA NM NM - - NA
DigitalP os t Interactive, Inc. 3/31/2009 DG LP OT C B B US D United S ta tes 0. 04 3.0 0. 7 (2.6) NM 6. 3x - 7
DigitalT own, Inc. 2/28/2009 DG T W OT C B B US D United S ta tes 2. 00 54. 2 NM (3.0) NM - - 3
Dolphin Digital Media , Inc. 3/31/2009 DP DM OT C B B US D United S ta tes 0. 45 23. 3 0. 8 (3.7) NM 31.3x - NA
E olith C o. Ltd. 12/31/2008 A041060 K OS E KR W S outh K orea 755 41. 8 14. 1 (3.3) -23. 6% 3. 1x - NA
E xtens ions , Inc. 3/31/2009 E XT I OT C P K US D United S ta tes 0. 10 4.4 NM NM NM - - 2
F luid Mus ic C a nada , Inc. 3/31/2009 T S X :F MN TS X C AD United S ta tes 0. 65 29. 5 5. 0 (6.9) NM 4. 1x - NA
F rogs ter Interactive P ictures AG 12/31/2008 FRG XT R A E UR G ermany 11. 50 37. 7 3. 2 (6.1) NM 11.2x - NA
G ama nia Digita l E ntertainment C o., Ltd. 3/31/2009 6180 GTS M TWD T aiwa n 55. 20 252. 6 124.9 20. 7 16. 6% 1. 8x 11. 1x NA
G ameOn C o Ltd. 3/31/2009 3812 TS E JPY J a pan 102,000 106. 6 79. 5 18. 8 23. 7% 0. 5x 2. 3x NA
G eoS entric O yj 3/31/2009 G E O 1V HL S E E UR F inland 0. 04 50. 1 5. 9 (15. 3) NM 7. 8x - 108
G iant Interactive G roup, Inc. 3/31/2009 GA NY S E US D C hina 8 1,705. 2 219.0 NM NM - - 1, 570
G iga Media Ltd. 3/31/2009 G IG M Na s daqG S US D T aiwa n 5. 42 295. 5 183.6 NM NM 1. 2x - 751
G ravity C o., Ltd 3/31/2009 GR VY Na s daqG M US D S outh K orea 1. 45 40. 3 43. 7 12. 0 27. 5% - - 469
G ree, Inc. 6/30/2008 T S E : 3632 TS E JPY J a pan 6,450 1,557. 1 31. 8 11. 4 36. 0% 46.3x - NA
G ungHo O nline E ntertainment, Inc. 3/31/2009 3765 OS E JPY J a pan 185,500 229. 7 111.4 20. 0 18. 0% 1. 8x 10. 0x NA
HanbitS oft, Inc. 3/31/2009 A047080 K OS E KR W S outh K orea 4,325 72. 4 52. 7 (14. 1) -26. 8% 1. 1x - NA
IAC /InterActiveC orp. 3/31/2009 IAC I Na s daqG S US D United S ta tes 16. 11 2,431. 3 1, 406. 4 42. 6 3.0% 0. 4x 12. 8x 3, 200
IAS E nergy, Inc. 1/31/2009 IAS C . A OT C B B US D C anada 0. 15 10. 5 0. 0 (0.8) NM - - NA
is eemedia Inc. 3/31/2009 IE E T S XV C AD C anada 0. 10 4.4 1. 5 (4.7) NM 2. 4x - NA
J umbuck E nterta inment P ty Ltd. 12/31/2008 AS X :J MB AS X AUD Aus tralia 0. 38 14. 6 13. 9 5.2 37. 2% 0. 7x 1. 9x 72
J umpT V Inc. 3/31/2009 T S X :J T V TS X C AD C anada 0. 70 68. 8 18. 1 (12. 0) -66. 6% 3. 2x - 237
K AB Dis tribution Inc. 3/31/2009 T S X :K AB TS X C AD C anada 0. 63 76. 1 71. 1 8.5 11. 9% 1. 1x 9. 6x NA
K ings oft C o. Ltd. 3/31/2009 3888 S E HK HK D C hina 5. 47 766. 3 129.1 52. 0 40. 3% 5. 5x 13. 7x 2, 271
Lingo Media C orporation 3/31/2009 T S X V :LM T S XV C AD C anada 1. 19 12. 8 0. 9 (1.5) NM 13.2x - NA
LiveW orld Inc. 3/31/2009 LVW D OT C P K US D United S ta tes 0 1.7 11. 4 (0.0) -0.4% 0. 1x - NA
LookS mart, Ltd. 3/31/2009 L OO K Na s daqG M US D United S ta tes 1. 14 19. 5 60. 7 (3.8) -6.3% - - 90
Magnitude Information S ys tems Inc. 3/31/2009 MAG Y OT C B B US D United S ta tes 0. 01 4.1 0. 1 (3.1) NM - - 14
Mixi, Inc. 3/31/2009 2121 TS E JPY J a pan 605,000 1,005. 4 130.3 46. 2 35. 4% 6. 8x 19. 1x NA
Modern T imes G roup Mtg AB 3/31/2009 MT G B OM SEK S weden 221. 00 1,841. 4 1, 702. 0 260.7 15. 3% 1. 4x 9. 2x 2, 969
MO K O .mobi Limited 12/31/2008 MK B AS X AUD Aus tralia 0. 07 4.7 1. 1 (2.3) NM 3. 2x - NA
Myriad G roup AG 12/31/2008 MY R N SWX C HF S witzerland 4. 70 92. 2 40. 0 0.8 1.9% 2. 6x - 405
NE O W IZ G ames C orpora tion 12/31/2008 A095660 K OS E KR W S outh K orea 31,000 249. 1 189.0 50. 8 26. 8% 1. 3x 4. 7x NA
NetDragon W ebS oft, Inc. 3/31/2009 777 S E HK HK D C hina 5. 69 388. 0 87. 0 34. 4 39. 5% 2. 9x 7. 4x 2, 426
Neteas e. com Inc. 3/31/2009 NT E S Na s daqG S US D C hina 35. 01 4,496. 3 470.6 305.9 65. 0% - - 3, 109
NeXplore C orporation 9/30/2007 NX P C OT C P K US D United S ta tes 0. 58 32. 4 NM (4.9) NM - - 19
Ngi G roup Inc. 3/31/2009 2497 TS E JPY J a pan 30,550 40. 9 95. 5 11. 5 12. 0% - - NA
Northgate T echnologies L imited 3/31/2009 590057 BSE INR India 29. 05 20. 7 114.3 (26. 8) -23. 5% 0. 2x - NA
O pen T ext C orp. 3/31/2009 OT E X Na s daqG S US D C anada 36. 00 1,894. 4 782.6 199.2 25. 5% 2. 5x 9. 8x 3, 400
O penwave S ys tems Inc. 3/31/2009 OP W V Na s daqG S US D United S ta tes 2. 29 190. 8 197.2 (2.1) -1.0% 0. 4x - 630
P erfect W orld C o. , Ltd. 3/31/2009 PWRD Na s daqG S US D C hina 28. 78 1,399. 8 228.2 124.6 54. 6% 0. 2x 0. 4x 2, 096
P NI Digital Media Inc. 3/31/2009 T S X V :P N T S XV C AD C anada 1. 45 42. 8 18. 7 0.4 2.3% 2. 2x - NA
Q uepa s a C orp. 3/31/2009 QP S A OT C B B US D United S ta tes 1. 00 12. 7 0. 1 (10. 8) NM - - 74
O AO R B C Information S ys tems 12/31/2007 R BCI R TS US D R us s ia 0. 75 104. 0 144.6 18. 9 13. 1% 0. 0x 0. 2x NA
S handa Interactive E nterta inment Ltd. 3/31/2009 S NDA Na s daqG S US D C hina 51. 81 3,459. 3 570.2 260.9 45. 8% 0. 0x 0. 1x 3, 124
S hutterfly, Inc. 3/31/2009 S FLY Na s daqG S US D United S ta tes 12. 00 302. 1 215.2 28. 3 13. 2% 1. 1x 8. 3x 514
S K C ommunications C o., Ltd. 12/31/2008 A066270 K OS E KR W S outh K orea 9,050 289. 6 175.7 11. 4 6.5% 1. 6x 25. 3x NA
S NAP Interactive, Inc. 3/31/2009 S TVI OT C B B US D United S ta tes 0. 45 4.9 3. 3 0.9 28. 0% 1. 0x 3. 7x 11
S NM G loba l Holdings 9/30/2008 S NMN OT C P K US D United S ta tes 0. 00 0.0 2. 0 (0.7) -34. 8% 1. 1x - 33
S ocial Media V enures , Inc. 12/31/2008 S MV I OT C P K US D United S ta tes 0. 32 0.0 0. 1 (0.1) -60. 5% 0. 0x - NA
S ocialwis e, Inc. 3/31/2009 S C LW OT C B B US D United S ta tes 0. 80 34. 7 0. 0 (4.8) NM - - NA
S ohu. com Inc. 3/31/2009 S O HU Na s daqG S US D C hina 58. 92 2,254. 5 460.0 200.5 43. 6% 4. 1x 9. 4x 3, 197
S park Networks , Inc. 3/31/2009 L OV AME X US D United S ta tes 2. 40 49. 4 54. 3 11. 8 21. 7% 0. 9x 4. 2x 183
S pectrumDNA, Inc. 3/31/2009 S P XA OT C B B US D United S ta tes 0. 15 7.3 0. 1 (2.6) NM - - 7
T encent Holdings Ltd. 3/31/2009 700 S E HK HK D C hina 87. 05 20, 272.6 1, 203. 7 576.8 47. 9% 18.3x 38. 2x 6, 194
T he P arent C ompany 8/2/2008 K IDS . Q OT C P K US D United S ta tes 0. 02 0.5 112.0 (13. 5) -12. 0% 0. 2x - 347
T he9 Limited 12/31/2008 NC T Y Na s daqG S US D C hina 8. 65 232. 0 249.9 84. 2 33. 7% - - NA
T heS treet. com, Inc. 3/31/2009 TS CM Na s daqG M US D United S ta tes 2 61. 1 67. 0 1.9 2.9% - - 310
T ota l S port O nline AS 3/31/2006 T OS O O T C NO NO K Norway 0. 03 0.1 2. 1 (1.0) -50. 6% 4. 6x - 16
T ree.C om, Inc. 3/31/2009 TR E E Na s daqG M US D United S ta tes 9. 59 103. 5 215.6 (13. 3) -6.2% 0. 4x - 700
Unis erve C ommunica tions C orp. 2/28/2009 T S X V :US S T S XV C AD C anada 0. 07 1.5 22. 5 0.1 0.2% 0. 2x - NA
United O nline Inc. 3/31/2009 UNT D Na s daqG S US D United S ta tes 7. 00 585. 1 811.2 177.3 21. 9% 1. 1x 4. 9x 1, 469
UOMO Media, Inc 1/31/2009 UO MO OT C B B US D C anada 0 9.0 0. 6 (0.5) -78. 2% 14.7x - NA
V alueC lick Inc. 3/31/2009 V C LK Na s daqG S US D United S ta tes 10 901. 9 591.7 105.5 17. 8% 1. 3x 7. 6x 1, 189
V OIS , Inc. 3/31/2009 V O IS OT C B B US D United S ta tes 0 8.3 0. 0 (1.1) NM - - 4
W ebzen Inc. 3/31/2009 W ZE N Na s daqG M US D S outh K orea 3. 28 38. 9 22. 0 (0.5) -2.4% - - NA
W izzard S oftwa re C orporation 3/31/2009 W ZE AME X US D United S ta tes 0. 51 24. 4 5. 6 (5.3) -94. 5% 4. 6x - 110
W orlds . com Inc. 3/31/2009 W DDD OT C B B US D United S ta tes 0. 15 7.9 0. 0 (0.8) NM - - 1
W oozyF ly, Inc. 3/31/2009 W ZY F OT C B B US D United S ta tes 0. 15 2.6 NM NM NM - - NA
W ynds torm C orpora tion NA W Y ND OT C P K US D United S ta tes 0. 10 1.8 NA NM NM - - NA
XING AG 3/31/2009 O 1B C XT R A E UR G ermany 30. 13 221. 6 52. 8 16. 5 31. 2% 3. 2x 10. 3x 239
Y eda ngO nline C orp. 12/31/2007 A052770 K OS E KR W S outh K orea 7,900 94. 7 52. 3 11. 3 21. 6% 2. 0x 9. 3x NA
Y nk K orea Inc. 12/31/2008 A023770 K OS E KR W S outh K orea 6,200 25. 3 10. 9 1.1 10. 5% - - NA
ZipLocal Inc. 3/31/2009 T S X V :ZIP T S XV C AD C anada 0. 01 0.3 2. 6 (2.0) -78. 3% 48.3x 38. 2x NA
High 20, 272.6 1,702. 0 576. 8 65. 0% 48.3x 38. 2x 6, 194
Low 0.0 0. 0 -26.8 -98. 9% 0. 0x 0. 1x 1
Average 583.6 153.8 33.6 8.1% 5.3x 9.2x 870
Median 49. 7 53.6 0. 8 13. 2% 1. 6x 9. 2x 376

Figure 1. Web 2.0 Universe Summary
Source. Capital IQ

C A P I T A L M A R K E T S A C T I V I T Y (M & A A N D F I N A N C I N G )
Online Media companies lead financing: Two online media companies, Pandora (Internet Radio) and QuickPlay (Mobile
Video), have secured the largest financing transactions thus far in July ($35 million and $12 million, respectively). Total
capital raised so far in July is $66.1 million through eight transactions, averaging $8.3 million per transaction. June closed
with $180 million in financing on 36 transactions. The averages for the months of May (excluding the Facebook
transaction) and June were $6.4 million and $4.7 million, respectively.

Financing Activity Last Three Months

200.0 9.0

8.3
180.0 8.0

160.0
7.0
6.4
140.0
6.0

120.0

5.0
(US$m)

(US$m)
4.7
100.0

4.0

80.0

3.0
60.0

2.0
40.0

1.0
20.0

0.0 0.0
May-09 (excl FB) Jun-09 Jul-09

Total Average

Figure 2. Financings, Last Three Months
Source. Company reports

(US$m)

0.0
50.0
100.0
150.0
200.0
250.0
Facebook
People Media

AdLink Internet Media
Pandora Media
StumbleUpon
One Net
Sugar Inc.
Tumri
Boku
Cyberplex
QuickPlay Media
Wimba

Figure 3. Capital Market Activity, Last Three Months
Grab Networks
Peer39
OpenX
Imeem
Goojet SAS
EveryZing
AdMeld Inc.
beeTV
I Love Rewards
WonderHill
BlogHer Inc.
Gist
blueKiwi Software SA
Nokeena
Metaversum
financings, see Figures 23 and 24 (at end of note).

Fuhu Inc.
Zoosk
Sense Networks
Azuki Systems
Gather
MojoPages
TimeBridge
OLX
DocuSign
Taomee
Animoto
GameGround
Nexage
StyleCaster
Medialets
RingRevenue
TweetDeck
Crowdcast
YuMe
eRepublik
Newser LLC
ClickFuel
Financing & M/A Summary - Last Three Months

Inigral
AdEx Media
GROU.PS
Resonate Networks
my6sense
Yapta
OneTXT
Cliqset
VoxPop
Mo'Minis
CoTweet
Glubble
Picaboo
LiquidPlanner
AdWhirl
TodaCell
Loop'd Network
MashLogic
People Capital
Jaxtr
Jul-09
Jun-09
May-09
Page 4

its revenue from advertising, indicated that it would be joining the new agreement as well. For additional details on
copyright holders reached agreement with a group of webcasters regarding royalty rates. Pandora, which derives most of
Pandora raises $35 million: Pandora had the largest raise over the last week, securing a $35 million round. Recently,

Social Network remains the most active sector in dollars raised, while Ad Network remains the most active in
number of transactions: Following recent trends, Social Networks as a sector saw the most activity in dollars raised
($240.5 million), largely attributed to the $200 million investment by Digital Sky Technologies in Facebook. However, it
was the Ad Network sector that saw the most transactions (13), raising $117.2 million (Figure 4).

Capital Market Activity by Sector - Last Three Months

300.0

250.0

200.0
(US$m)

150.0

240.5

100.0

117.2
50.0
80.0

35.0 29.0 25.8 23.0 20.4 20.0 19.3 18.3 17.5 17.0 16.5 13.3 13.0 6.8 6.3 4.0
0.0 3.2 1.0 1.0 0.5
Comment/Reputation

Mobile Payment

Communities
Online Dating

Gaming

Mobile

Enterprise

Collaboration

Media

Microblog

Publishing

Online Lending
Music

Blog

Infrastructure

Search

Mobile Ad
Widget
Social Networks

Video

Virtual World

Aggregation
Ad Network

Vertical
# companies
11 13 1 1 1 5 2 3 3 6 3 5 3 3 2 1 1 1 1 1 1 1 1

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

C A P I T A L M A R K E T S A C T I V I T Y (P R I C E P E R F O R M A N C E )
Web 2.0 index outpaces NASDAQ recovery: Our W eb 2.0 index (market-cap weighted) essentially mirrored the
performance of the NASDAQ composite index from mid-2008 until recently. However, the index has recently had a much
stronger recovery relative to the NASDAQ index (Figure 5).

Web 2.0 Index Price Performance
120

100

80

60

40

20

0
7/14/2008

7/28/2008

8/11/2008

8/25/2008

9/8/2008

9/22/2008

10/6/2008

10/20/2008

11/3/2008

11/17/2008

12/1/2008

12/15/2008

12/29/2008

1/12/2009

1/26/2009

2/9/2009

2/23/2009

3/9/2009

3/23/2009

4/6/2009

4/20/2009

5/4/2009

5/18/2009

6/1/2009

6/15/2009

6/29/2009

7/13/2009
^COMP - Share Pricing Index: Web 2.0 (Market Cap)

Figure 5. Web 2.0 Price Performance
Source. Capital IQ

A w eak price performance week: The companies in our universe had weak stock price performances over the past week
(for stocks with prices greater than $1) (Figure 6), with 30 companies showing negative returns on the week. Gravity
(NasdaqGM:GRVY) led the group with a 33% return, while GungHo (3765-OSE) had the worst return, dropping 26.4% in
the week.

1 Week P rice P erformance
G ravity Co., Ltd 33.0%
United Online Inc. 12.0%
V alueClick Inc. 4.7%
Neteas e.com Inc. 3.2%
A ctoz S oft Co., Ltd. 2.8%
Tree.Com, Inc. 2.8%
Cy berplex Inc. 2.6%
Mix i, Inc. 2.5%
Openw ave S y s tems Inc. 1.8%
NetDra gon WebS oft, Inc. 0.9%
S park Netw orks , Inc. 0.8%
Open Tex t Corp. 0.5%
X ING A G 0.3%
S ohu.com Inc. 0.2%
Perf ect World Co., Ltd. 0.1%
PNI Digital Media Inc. 0.0%
My riad G roup A G 0.0%
Lingo Media Corporation 0.0%
CDC Corp. 0.0%
IA C/InterA ctiveCorp. -0.2%
TheS treet.com, Inc. -0.2%
Modern Times Group Mtg A B -0.5%
Tencent Holdings Ltd. -0.6%
Quepas a Corp. -1.0%
GigaMedia Ltd. -1.1%
DA DA S pA -1.3%
Frogs ter Interactive Pictures A G -2.7%
NEOWIZ G ames Corporation -3.6%
Chines e G amer International -3.6%
S handa Interactive Entertainment -4.1%
G iant Interactive G roup, Inc. -4.3%
Eolith Co. Ltd. -5.0%
Changy ou.com Limited -5.6%
HanbitS oft, Inc. -6.4%
K ings oft Co. Ltd. -6.5%
G amania Digital Entertainment Co., -6.9%
The9 Limited -7.2%
LookS mart, Ltd. -7.3%
Y nk K orea Inc. -7.3%
S hutterfly , Inc. -8.0%
S K Communications Co., Ltd. -8.4%
Webz en Inc. -9.1%
G ameOn Co Ltd. -9.7%
Y edangOnline Corp. -12.1%
G ree, Inc. -12.8%
A Q Interactive, Inc. -20.1%
Ngi G roup Inc. -20.2%
Northgate Technologies Limited -20.7%
G ungHo Online Entertainment, Inc. -26.4%
-30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0%

Figure 6. 1-Week Price Performance
Source. Capital IQ

INDUSTRY NEWS (PARTNERSHIPS, FINANCIAL RESULTS, NEW PRODUCTS)
K ey Developments
C ompany Headline Notes
J umbuck E ntertainment Pty L td. Upda te to J umbuck E ntertainment P ty Ltd.'s E quity As of J uly 6, 2009, J umbuck E ntertainment P ty Ltd. ha s repurchas ed 87,750 s hares for a total cos t of AUD 0. 03 million under the program.
(AS X: J MB ) B uyba ck on J uly 6, 2009
C hina E as tern Airlines C orp. L td. T encent Holdings Ltd. T ea ms Up with C hina E a s tern T enpa y, an online pa yment pla tform run by C hines e internet s ervices provider T encent Holdings L td. has s igned a co-operation a greement
(S E HK : 670); Tenc ent Holdings L td. Airlines C orp. Ltd with C hina E as tern Airlines . Under the agreement, T enpa y a nd C hina E a s tern will co-operate on online payment of a ir ticket booking and
(S E HK : 700) joint a ir ticket platform opera tions . T enpa y will als o provide B 2B dis tribution a nd s ettlement s ervices for travel bus ines s .

C L IC K E R Inc . (OTC B B : C L K Z) F ina ncial Media G roup Inc. will C hange its T icker to E ffective J uly 08, 2009, F inancia l Media G roup Inc. will change its O T C B B s tock ticker s ymbol to C L K Z from F NG P .
C L K Z from F NG P
S pectrumDNA, Inc . (OTC B B : S P XA) S pectrumDNA Inc. Appoints J eff Nola n to its B oard of S pectrumDNA Inc. a nnounced the appointment of J eff Nola n, entrepreneur, venture capita lis t and prolific s ocial media s tra tegis t, to its boa rd
Directors of directors . Mos t recently, Mr. Nola n wa s the V P C orpora te Development a t News G ator T echnologies . During his tenure, Mr. Nolan overs aw
res tructuring of News G ator into enterpris e s oftware a nd media bus ines s units operating independently of each other. He als o worked to
es tablis h brand lea ders hip for the company in the widget and content s yndica tion market s pa ce. Mr. Nolan brings to the S pectrumDNA boa rd
a n extens ive ba ckground in technology and Internet infras tructure a nd a ls o deep ma rketing s kills .

B eyond C ommerc e, Inc. B eyond C ommerce Inc. R eports R evenue R es ults for the B eyond C ommerce Inc. reported revenue res ults for the s econd quarter ended J une 30, 2009. F or the period, the company reported tha t due
(OTC B B : B YOC ) S econd Quarter E nded J une 30, 2009 ; P rovides to the s trong growth of its a dvertis ing and E -commerce divis ions $5. 3 million in revenues , up 8, 826% from the s econd qua rter 2008.
R evenue G uida nce for the T hird, F ourth Q ua rter and
S econd Half of F is ca l 2009 T he compa ny expects s trong revenue growth throughout the ba lance of the fis ca l year.

T he compa ny project third and fourth qua rter revenues to exceed $27 million as they were coming into their s tronges t s elling s eas on.

J umbuck E ntertainment Pty L td. Upda te to J umbuck E ntertainment P ty Ltd.'s E quity As of J uly 7, 2009, J umbuck E ntertainment P ty Ltd. ha s repurchas ed 95,250 s hares for a total cos t of AUD 0. 03 million under the program.
(AS X: J MB ) B uyba ck on J uly 7, 2009
OAO R B C Information S ys tems OAO R B C Information S ys tems Announces E xecutive O AO R B C Informa tion S ys tems a nnounced tha t on J une 30, 2009, the B oard of Directors of the compa ny appointed R B C co-founder
(R TS : R B C I) Appointments G erman K a plun, a s G eneral Director, effective J uly 1, 2009. O wing to his appointment to the pos ition of R B C G eneral Director, the boa rd
a ls o cons idered the ques tion of reelecting the cha irma n of the B oa rd of Directors . T he G eneral Director of the R B C T V bus ines s cha nnel-
Artyom Inutin, who ha s been in cha rge of R B C 's media bus ines s for more than 10 yea rs , wa s elected a s a new chairman of the B oard of
Directors of the company.
DigitalFX International, Inc . Digita lF X International Inc. Appoints Allen La ngford as O n J uly 1, 2009, Digita lF X Interna tional Inc. appointed Allen La ngford, age 49, a s its new C hief O pera ting O fficer. Mr. L angford has over
(OTC B B : DG FX) C hief Operating Officer twenty years of ma na gement experience in the technology indus try, including three yea rs as divis iona l E xecutive V ice P res ident of P P G
Indus tries Inc. and various executive level roles in other compa nies . S ince O ctober 15, 2008, Mr. La ngford ha s s erved the compa ny as a n
independent contra ctor. P rior to his a ppointment as the compa ny's C hief Opera ting Officer Mr. L angford wa s als o a direct s elling 'affilia te' of
V Mdirect, L . L. C .
NetDragon WebS oft, Inc. (S E HK : 777) NetDragon La unches B eta T es t of Heroes of Might and NetDragon W ebS oft Inc. a nnounced that the beta tes t vers ion of the 2. 5D MMOR P G Heroes of Might and Ma gic Online: G old E dition will be
Ma gic O nline: G old E dition officia lly la unched at 15: 00 (C hina S tanda rd T ime) on J uly 8th. Heroes of Might a nd Magic Online: G old E dition is a product of s ignificance
for NetDragon, a s it repres ents the culmination of years of itera tive des ign proces s es , a nd bala nces the des ires of gamers with the cla s s ic
s trategic game-play elements of Ubis ofts legendary Heroes of Might & Magic fra nchis e.
Gravity C o., L td (Nas daqGM: G R VY) G ravity C o. Ltd. R eports Unaudited C ons olidated G ra vity C o. L td. reported una udited cons olida ted earnings res ults for the firs t quarter ended Ma rch 31, 2009. T he company reported
E a rnings R es ults for the F irs t Q ua rter E nded Ma rch 31, revenues for the firs t qua rter ended Ma rch 31, 2009 wa s K R W 16, 607 million ($12, 991,000), repres enting a 9. 27% increa s e from K R W
2009 15, 198 million ($11,889,000) for the fourth quarter ended December 31, 2008 a nd a 32.55% increas e from K R W 12, 529 million ($9, 801, 000)
for the firs t quarter ended March 31, 2008. Income before income tax expens es and others was K R W 6, 997 million ($5, 474, 000) for the firs t
qua rter of 2009, which repres ents a 76.03% increas e compa red with K R W 3,975 million ($3, 110,000) a nd a 2, 616. 91% increa s e yea r on
year compared with a los s of K R W 278 million ($217,000). Net income wa s K R W 5, 253 million ($4, 109, 000) for the firs t qua rter of 2009
compared with a net income of K R W 1,654 million ($1, 294, 000) for the fourth quarter of 2008 and a net los s of K R W 4,513 million
($3,531, 000) for the firs t qua rter of 2008. Operating income wa s K R W 5, 513 million agains t los s of K R W 1,686 million for the s a me period a
year a go. Income before minority interes t a nd equity in los s of rela ted joint venture wa s K R W 5, 592 million a gains t los s of K R W 1,127 million for the s

Open Text C orp. (Nas daqGS : OTE X) Open T ext C orp. Announces Availa bility of Open T ext O pen T ext C orp. announced the immedia te a vaila bility of Open T ext W eb S olutions 10, the la tes t relea s e of O pen T ext's W eb C ontent
W eb S olutions 10 Management (W C M) s oftware. T he new releas e a llows orga niza tions to intelligently ma na ge a nd deliver a broad s et of corporate informa tion
to us ers over the W eb, and fea tures extens ive us a bility upgra des , a new technology founda tion, and deeper and more comprehens ive
integration with the Open T ext E C M S uite a nd the S AP NetW ea ver(R ) P orta l component. T he role of W C M has s ignificantly expa nded from a
place to s tore a nd publis h externa l-fa cing content to a vital tool in helping to s upport orga niza tiona l bus ines s goals in s uch a reas as s ales
a nd cus tomer s upport. T his means tha t W C M mus t deliver a highly pers onal cus tomer experience a nd be a ble to tap into content hous ed in
many different enterpris e s ys tems . And a s digital as s ets ha ve become les s expens ive to crea te, companies need better wa ys to ma na ge rich
media s uch as audio a nd video.

K ey Developments
C ompany Headline Notes
K ings oft C o. L td. (S E HK : 3888) An unknown s hareholder entered into a term s heet to s ell An unknown s ha reholder entered into a term s heet to s ell 7. 81% s take in K ings oft C o. L td. (S E HK : 3888) on J uly 9, 2009. HS B C is acting a s
7.81% s ta ke in K ings oft C o. L td. (S E HK : 3888). book runner for the s ale.

VOIS , Inc. (OTC B B : VOIS ) V OIS , Inc., 100 : 1, S tock S plit or S ignificant S tock V OIS , Inc., 100 : 1, S tock S plit or S ignificant S tock Dividend, J ul-09-2009
Dividend, J ul-09-2009
Openwave S ys tems Inc. O penwave S ys tems Inc. Appoints J ohn G iere a s S enior Openwave S ys tems Inc. a nnounced the a ppointment of J ohn G iere as s enior vice pres ident, products and marketing, effective J uly 8, 2009.
(Nas daqG S : OPW V) V ice P res ident of P roducts and Marketing G iere brings more than 20 years of mana gement, marketing a nd bus ines s development experience a t compa nies in the telecommunica tions
indus try, including Alcatel Lucent and E rics s on. G iere will report to the company's C E O , K en Denman. P rior to O penwave, J ohn s erved as
chief marketing officer a t Alcatel Lucent. He als o held a number of s enior marketing roles at E rics s on, including vice pres ident, new bus ines s
development; vice pres ident, global branding a nd ma rketing; a nd executive vice pres ident, bus ines s development a nd s ales s upport. J ohn
currently s erves on the T elecommunications Indus try As s ociation (T IA) E xecutive B oard. He holds an MB A from the Univers ity of Maryla nd
a nd a B S degree from G eorgetown Univers ity.

B eyond C ommerc e, Inc. B eyond C ommerce Announces LocalAdL ink's E xpans ion B eyond C ommerce Inc. a nnounced the P re-L aunch of LocalAdL ink into the C a nadian ma rket. LocalAdL ink ha s its firs t meeting s cheduled in
(OTC B B : B YOC ) Into C a na da C anada on J uly 25th in T oronto. T o regis ter for this introductory meeting. LocalAdL ink is an online advertis ing s ervice tha t enables loca l
bus ines s es to reach local cus tomers . T he cus tomer facing W eb s ite L ocalAdLink. com is a local s earch directory and acts as the centra l hub
for the Loca lAdL ink technology. W hen a cus tomer vis its LocalAdL ink. com, the proprieta ry geo-targeting technology identifies their location
a nd s erves up loca l bus ines s es in their zip code. O nce here, a cus tomer can perform additional s earches for loca l bus ines s es and s ervices
a cros s a complete s election of categories and get the informa tion they require.

P NI Digital Media Inc. (TS XV: P N); R etail P NI Digital Media Inc. Adds New Dis tributors and New P NI Digital Media Inc. announced s evera l new initiatives related to its P NI C onnected K ios k(T M). P NI a nd R eta il Ima ging Ma na gement
Imaging Management G roup L lc R etailers with P NI C onnected K ios k G roup Llc are working together to dis tribute the P NI C onnected K ios k to ma jor retail cus tomers acros s the US . R etail Ima ging has a lrea dy
enabled P NI to s ell the traditional touch-s creen termina l-ba s ed vers ion of the P NI C onnected K ios k into F red Meyer and K ing S oopers ,
a nnounced on April 30th, 2009. P NI a nd R eta il Ima ging have now teamed up to pla ce the web vers ion of the P NI C onnected K ios k with
As s ocia ted F oods S tores ' online P ixureT his (T M) photo s olution. P NI has als o teamed up with P hoto G ift W orld to launch the online vers ion
of the P NI C onnected K ios k to a new range of P G W cus tomers including s ma ll reta ilers , corporations , non-profit orga nizations a nd s chools .
P G W , the producer of photo gifts , photo books a nd calendars for C a na dian retailers , is now a ctively purs uing pa rtners hips in the US . T he
P NI C onnected K ios k enables P G W to offer their thous ands of photo gift products in a n efficient manner to any number of new cus tomers
Open Text C orp. (Nas daqG S : OTE X) C anopius S elects Open T ext E C M S uite Open T ext C orp. announced that C anopius has s elected the O pen T ext E C M S uite to improve proces s es , reduce filing cos ts a nd, more
importa ntly, s upport the implementation of electronic tra ding. R ealizing the ever-increas ing ma rket dema nd for electronic trading, C anopius
unders ta nds the need for a document mana gement and workflow s ys tem that would enable the orga nization to exchange information
electronica lly with brokers and third parties around the world. F ollowing a rigorous evaluation proces s , C a nopius chos e the O pen T ext E C M
S uite, pa rticula rly for its bus ines s proces s management a nd document management capa bilities . One of the key factors in the decis ion was
that Open T ext could offer an integra ted document ma nagement and bus ines s proces s ma na gement s olution, reducing s ys tem integra tion
concerns .

Figure 7. Key Developments
Source. Capital IQ

VALUATION
Online Gaming companies lead market-cap charts: Thirteen companies in our W eb 2.0 universe top US$1 billion in
market capitalization (Figure 8). Fifty-eight of the 92 companies have market caps under US$100 million, with 26 under
US$10 million. Online gaming companies dominate the top of the list, led by Tencent Holdings with a market cap over
US$20 billion.

Market C ap (US D m)
Tencent Holdings Ltd.
Neteas e. com Inc.
S handa Interactive Entertainment 3459.3
IA C/InterA ctiveCorp. 2431.3
S ohu. com Inc. 2254.5
Cha ngy ou.com Limited 2068. 6
Open Tex t Corp. 1894. 4
Modern Times G roup Mtg A B 1841.4
G iant Interactive G roup, Inc. 1705.2
G ree, Inc. 1557.1
Perf ect World Co., Ltd. 1399.8
Chines e G amer Internationa l 1089.6
Mix i, Inc. 1005.4
V a lueClick Inc. 901.9
K ings oft Co. Ltd. 766.3
United Online Inc. 585.1
NetDra gon WebS of t, Inc. 388.0
S hutterf ly , Inc. 302.1
G igaMedia Ltd. 295.5
S K Communications Co., Ltd. 289. 6
G ama nia Digital Entertainment Co., 252.6
NEOWIZ G ames Corporation 249.1
The9 Limited 232.0
G ungHo Online Entertainment, Inc. 229.7
XING A G 221.6
Openw ave S y s tems Inc. 190.8
A ctoz S oft Co., Ltd. 169.8
CDC Corp. 150.7
DA DA S pA 139.1
G ameOn Co Ltd. 106.6
OA O R B C Inf ormation S y s tems 104.0
Tree.Com, Inc. 103.5
Y edangOnline Corp. 94.7
My riad G roup A G 92.2
Cy berplex Inc. 88.9
K A B Dis tribution Inc. 76. 1
HanbitS of t, Inc. 72.4
JumpTV Inc. 68.8
TheS treet.c om, Inc. 61.1
DigitalTow n, Inc. 54.2
G eoS entric Oy j 50.1
S park Netw orks , Inc. 49.4
PNI Digital Media Inc. 42.8
Eolith Co. Ltd. 41.8
Ngi G roup Inc. 40.9
G ravity Co. , Ltd 40.3
Webz en Inc. 38.9
Frogs ter Interac tiv e Pictures A G 37.7
S ocialw is e, Inc. 34.7
A Q Interac tiv e, Inc. 32.4
NeXplore Corporation 32.4
Fluid Mus ic Canada, Inc. 29.5
Y nk K orea Inc. 25.3
Wiz z ard S of tw are Corporation 24.4
Dolphin Digita l Media, Inc. 23.3
DXN Holdings B hd 22.4
Northgate Technologies Limited 20.7
B roadWebA s ia Inc. 19.5
LookS mart, Ltd. 19.5
B ey ond Commerc e, Inc. 18.0
A cceleriz e New Media, Inc. 15.2
J umbuck Entertainment Pty Ltd. 14.6
Lingo Media Corporation 12.8
Quepas a Corp. 12.7
IA S Energy , Inc. 10.5
UOMO Media, Inc 9.0
V OIS , Inc. 8.3
Worlds . com Inc. 7.9
S pectrumDNA , Inc. 7.3
S NA P Interac tiv e, Inc. 4.9
MOK O.mobi Limited 4.7
Ex tens ions , Inc. 4.4
is eemedia Inc. 4.4
B right Things plc 4.1
Magnitude Inf ormation S y s tems 4.1
CornerWorld Corporation 3.9
DigitalPos t Interac tiv e, Inc. 3.0
Wooz y Fly , Inc. 2.6
B etaw ave Corporation 2.6
B igs tring Corp. 2.1
Wy nds torm Corporation 1.8
LiveWorld Inc. 1.7
Unis erv e Communications Corp. 1.5
CLICK ER Inc. 1.3
A s s ociated Media Holdings Inc. 0.9
The Pa rent Company 0.5
ZipL ocal Inc. 0.3
China G atew ay Corporation 0.3
Total S port Online A S 0.1
S ocial Media V enures , Inc. 0.0
S NM G lobal Holdings 0.0
Dibz Interna tional, Inc. 0.0
0 500 1,000 1,500 2, 000 2,500 3,000 3,500 4, 000

Figure 8. Market Cap Ranking
Source. Capital IQ

TEV/Revenue (LTM) averages 5.3x: The overall average TEV/Revenue (LTM) multiple for our group is 5.3x (versus 4.6x
last week) (Figure 9). Two companies trade at more than 40x revenue – Bigstring Corp. (OTCBB:BSGC) at 48.3x, closely
followed by Gree (TSE:3632) at 46.3x. The median is only 1.8x. Note that we exclude multiples greater than 50x. Thirty-
two companies have multiples under 1.5x.

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

60. 0

50. 0 48.3
46.3

40. 0

31.3

30. 0

20. 0 18.318.419.2
14.715.2
13.2
11.2
8.5
10.erage, 5. 3
Av 0 6.8 7.8
5.5 6.3
4.1 4.1 4.1 4.6 4.6 4.9
2.4 2.5 2.6 2.9 3.1 3.2 3.2 3.2 3.2
1.1 1.1 1.2 1.2 1.3 1.3 1.4 1.6 1.6 1.8 1.8 2.0 2.2 2.2
0.1 0.1 0.2 0.2 0.2 0.2 0.4 0.4 0.4 0.4 0.5 0.5 0.6 0.7 0.8 0.9 1.0 1.1 1.1 1.1
0. 0
N E O WIZ G ames C orporation

MO K O .mobi L imited

UO MO Media, Inc
C LIC K E R Inc.

J umbuck E nterta inment P ty L td.

G ungH o O nline E ntertainment, Inc.
G a mania Digital E ntertainment C o., Ltd.

P N I Digital Media Inc.

C hines e G amer Interna tional
U nis erve C ommunications C orp.
N orthgate T echnologies L imited

DXN Holdings B hd

C ha ngy ou.com L imited
C DC C orp.

T ree.C om, Inc.

G a meO n C o Ltd.

S K C ommunica tions C o., Ltd.

B ey ond C ommerc e, Inc.

F luid Mus ic C a nada , Inc.

DigitalP os t Intera ctive, Inc.

Dolphin Digital Media, Inc.
T he P a rent C ompany

Modern T imes G roup Mtg AB

G eoS entric O y j
S N M G loba l Holdings

C ornerWorld C orporation

Lingo Media C orporation
S NAP Intera ctive, Inc.

United O nline Inc .

O pen T ex t C orp.

J umpT V Inc .
IAC /InterAc tiveC orp.

S pa rk N etwork s , Inc .

C y berplex Inc .
G igaMedia Ltd.

V alueC lic k Inc .

is eemedia Inc .

NetDra gon WebS oft, Inc .
E olith C o. Ltd.

XIN G AG

S ohu.com Inc .

Mix i, Inc .

F rogs ter Intera ctiv e P ic tures AG

T encent Holdings Ltd.

As s ociated Media Holdings Inc .

G ree, Inc .
B right T hings plc
L iveWorld Inc .

P erfect World C o., Ltd.

O penwave S y s tems Inc .

ZipLoca l Inc .

H anbitS oft, Inc .

K AB Dis tribution Inc .

Y edangO nline C orp.

Y nk K orea Inc .

B igs tring C orp.
My riad G roup AG

T otal S port O nline AS
S hutterfly , Inc .

Acceleriz e New Media , Inc .
K ings oft C o. Ltd.
DADA S pA

Ac toz S oft C o. , Ltd.

Wiz z ard S oftware C orporation

Figure 9. TEV/Revenue Ranking
Source. Capital IQ

TEV/Revenue (LTM) by country/exchange: W e have also calculated multiples based on where the companies are listed
or domiciled. Figure 10 shows the average TEV/Revenue multiples by stock exchange. The OTCBB has the largest
number of companies (18), trading at an average multiple of 12.7x (versus. 13.7x last week). On a geographic basis, the
United States has the most companies (38), trading at an average of 5.8x revenue (versus 5.7x last week) (Figure 11).
Ten of the companies are Canadian (average 4.4x revenue).

Average TEV/LTM Revenue - By Exchange Average TEV/LTM Revenue - By Country
16.0 15.2 16.0 15.2
14.0 14.0
13.4
12.0 12.7 12.0
10.0 10.0 11.1
10.1
(x)

8.0 8.9 7.8
(x)

8.0 7.8
6.0 7.2 7.2 7.2
4.6 4.13.4 6.0 5.8 5.6
4.0 2.8 2.6 2.4 1.8 1.4 4.6
2.0 1.8 1.8 4.0 4.4
2.0 0.8
0.5 2.6 2.0 1.8 1.4
0.0 0.4 0.2 0.0 2.0
0.8 0.5
OTCNO

OTCPK
OTCBB
GTSM

NasdaqGM

0.4 0.2 0.0
TSE

SEHK
HLSE

KOSE
OSE
NasdaqGS

RTS
OM
CM
XTRA

AMEX

TSX

KLSE

BSE
AIM

0.0
TSXV

SWX

ASX

Germany
United

Japan

Finland

United

China

Canada

Malaysia

Hong Kong
India

Russia
Italy
South
Taiwan

Australia
Norway

Switzerland

Sweden

# Companies 1 5 18 2 3 1 2 1 4 11 2 1 4 2 7 1 14 1 1 1 5 1 1

# Companies 1 6 1 2 3 38 10 1 10 1 2 9 1 1 1 1 1 1

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

TEV/EBITDA (LTM) averages 9.2x: The average multiple for the 35 companies with positive EBITDA (and multiples under
100x) is 9.2x LTM EBITDA (vs. 10.1x last week), led by Tencent Holding’s (700-SEHK) 38.2x multiple (Figure 12).
Fourteen of the companies have EBITDA multiples under 7x. The median multiple is 8.0x (vs. 9.2x last week).

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

45. 0

40. 0 38. 2

35. 0 32. 9

30. 0
25. 3
25. 0
21. 4
19. 1
20. 0

13. 9
15. 0 12. 8 13. 7
11. 1 11. 7
A verage, 9. 2 9. 2 9. 3 9. 4 9. 6 9. 8 10. 0 10. 3
10. 0 7. 4 7. 4 7. 6 8. 3
4. 7 4. 9 5. 3 5. 5
5. 0 3. 4 3. 7 4. 2
1. 9 2. 3
0. 1 0. 2 0. 3 0. 4 0. 6
0. 0
NE O WIZ G ames C orporation
C L IC K E R Inc .

J umbuck E ntertainment P ty Ltd.

G ungH o O nline E ntertainment, Inc .

G amania Digital E ntertainment C o. , Ltd.

C hines e G amer International
O AO R B C Information S y s tems

DXN Holdings B hd

C hangy ou. c om L imited
G ameO n C o L td.

C DC C orp.

S K C ommunic ations C o. , L td.
S handa Interac tive E ntertainment L td.

S NAP Interac tive, Inc .

U nited O nline Inc .

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

S park Network s , Inc .

NetDragon WebS oft, Inc .

V alueC lic k Inc .

S ohu. c om Inc .

C yberplex Inc .

IAC /InterAc tiveC orp.

Mix i, Inc .

T enc ent Holdings L td.
XING AG
P erfec t World C o. , L td.


K AB Dis tribution Inc .

Y nk K orea Inc.
S hutterfly , Inc.

K ings oft C o. L td.
DADA S pA

Actoz S oft C o. , L td.

Figure 12. TEV/EBITDA Ranking
Source. Capital IQ

TEV/EBITDA (LTM) by country/exchange: Figure 13 shows the average TEV/EBITDA multiples by stock exchange. The
OTCBB has the largest number of companies (18), trading at an average multiple of 2.0x (vs. 3.7x last week). On a
geographic basis, the United States has the most companies (38), trading at an average of 6.0x EBITDA (Figure 14). Ten
of the companies are Canadian (average 10.4x EBITDA).

Average TEV/LTM EBITDA - By Exchange Average TEV/LTM EBITDA - By Country
25.0 22.0 25.0
22.0
20.0 20.0
19.8
15.0
13.6 15.0 13.6
(x)

(x)

10.0 10.6 10.3 11.9
10.0 9.2 10.4 10.3 9.2
7.3 7.3 10.0 8.0
5.5 6.0 5.5
5.0 4.2
3.4 2.0 1.9 0.2 5.3
0.0 0.0 5.0 3.4
0.0 0.2
1.9
OTCBB
GTSM

SEHK

KOSE

OSE

TSE

NasdaqGS

RTS
OM

CM
TSX

XTRA

AMEX

KLSE

BSE
SWX
ASX

0.0 0.0
Germany
China

Canada

Japan
United

Hong Kong

Malaysia

Russia
Italy
South
Korea

States
Taiwan

Australia
Sweden

Switzerland

# Companies 2 3 7 4 2 1 1 5 14 1 2 1 18 2 1 1 1
# Companies 3 9 10 10 2 1 6 38 1 1 1 2 1 1

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

P/E (LTM) averages 11.0x: The average multiple for the 30 companies with positive earnings (and multiples under 100x)
is 11.0x LTM EPS (vs. 17.2x last week), led Worlds.com (OTCBB-W DDD) 51.2x multiple (Figure 15). Eleven of the
companies have P/E multiples under 10x. The median is just 13.3x.

P /E L T M (x)

60.0

51.2
48.3 48.6
50.0
42.5

40.0

28.5 29.6
30.0 26.6 27.1
23.6
20.7 21.1
20.0 17.2
15.1
13.9 14.1
12.0 12.7
A verage, 11.0 10.5 11.7
8.9
10.0 7.4
5.6 6.1
2.8 4.0
1.8 2.4 2.6
0.7
0.0

NE O W IZ G ames C orporation
J umbuck E ntertainment P ty Ltd.

G amania Digital E ntertainment C o., Ltd.

C hines e G amer International
DXN H oldings B hd

C hangy ou.com Limited
G iant Interactive G roup, Inc.

G ameO n C o Ltd.
T he9 Limited

Neteas e.com Inc.

S handa Interactive E ntertainment Ltd.

S NAP Interactive, Inc.

O pen T ex t C orp.
C y berplex Inc.

G igaMedia Ltd.

S ohu.com Inc.

NetDragon W ebS oft, Inc.

S park Network s , Inc.

IAC /InterActiveC orp.

Mix i, Inc.

T encent H oldings Ltd.

Worlds .com Inc.
XING AG
P erfect World C o., Ltd.


K ings oft C o. Ltd.

DADA S pA

Actoz S oft C o., Ltd.

Figure 15. P/E Ranking
Source. Capital IQ

P/E (LTM) by country/exchange: Figure 16 shows the average P/E multiples by stock exchange. The OTCBB has the
largest number of companies (18), trading at an average multiple of 29.3x. On a geographic basis, the United States has
the most companies (38), trading at an average of 23.6x earnings (Figure 17). Ten of the companies are Canadian
(average 19.2x EPS).

Average P/E - By Exchange Average P/E - By Country
40.0 35.0
34.8 30.2
35.0 30.0
30.0
30.2 29.3 25.0
25.0 26.6 27.1
23.6 23.6 23.6
20.0
(x)

20.0 21.9 21.1 21.1
(x)

19.2
15.0 15.1 15.0 16.4
10.8 8.9 11.7
10.0 6.1 5.6 10.0
5.0 4.0 6.1
1.8 5.6
5.0 4.0
0.0 0.0
OTCBB
GTSM

NasdaqGM
TSE

SEHK

KOSE

NasdaqGS
CM

OM
XTRA

AMEX

TSX

KLSE

NYSE
ASX

0.0 0.0
Germany
Japan

United

Canada

China

Malaysia
Italy

South
Korea
States
Taiwan

Australia

Sweden

Switzerland

# Companies 2 5 18 3 1 7 2 2 14 4 2 1 1 1 5
# Companies 6 3 1 38 2 10 9 10 2 1 1 1

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

UPCOMING EVENTS

E arnings C alendar
C ompany Date & Time Quarter C onf C all Deta ils
C ha ngyou. com L imited (Nas da qG S : C Y O U ) Mond ay , J uly 2 7, 2 009 7:00 AM ( E DT ) Q2 200 9 1-866-20 2-3048
S ohu. com Inc . ( Nas da qG S : S O HU) Mond ay , J uly 2 7, 2 009 8:30 AM ( E DT ) Q2 200 9 1-866-73 0-5764
IA C /InterAc tiv eC orp. (Na sdaqG S :IA C I) W ed nes day , J uly 29, 2009 11: 00 A M ( E DT ) Q2 200 9 NA
S hutterfly , I nc . ( Nas daq GS : S F LY ) W ed nes day , J uly 29, 2009 5:0 0 P M ( E DT ) Q2 200 9 913-31 2-0641
T ree. C om, Inc . (Na sdaqG M: T R E E ) T hurs day , J uly 30, 2009 11: 00 A M ( E DT ) Q2 200 9 877-72 3-9523
V alu eC lic k Inc . (Na sdaqG S : V C L K ) T ues da y, Augus t 04 , 20 09 4 : 30 P M (E DT ) Q2 200 9 818-57 5-4677
O pen T ext C orp. (Na s daqG S : O T E X ) T hurs day , A ugust 20, 200 9 5: 00 P M ( E DT ) Q4 200 9 416-64 4-3415

Figure 18. Earnings Calendar

Pric e P erformanc e
C ompany Name C urrenc y Tic ker E xc hange US D Market C ap ($m) C urrent P ric e 1 Wk 1 Mth 3 Mth 6 Mth 1 Yr 52 Week

A ccelerize New Media, Inc. US D AC L Z OT C B B 15.2 0.55 10.0% 57.1% 22.2% 57.1% -17. 9% -21.4%
A ctoz S oft C o. , L td. KR W A052790 K OS E 169.8 25, 800 2. 8% -2.1% 79.8% 150.5% 225. 8% -28.3%
A Q Interactive, Inc. JPY 3838 TS E 32.4 55, 200 -20.1% -25.4% 34.6% 89.0% -62. 7% -68.5%
A s s ociated Media H oldings Inc. US D AS MH OT C P K 0.9 0.02 1233.3% 1233. 3% 1328. 6% 566.7% NM -60.0%
B igs tring C orp. US D BSGC OT C B B 2.1 0.04 17.6% 33.3% 166.7% 135.3% -63. 6% -69.0%
B eta wave C orpora tion US D B W AV OT C B B 2.6 0.09 -10.0% -10.0% -25.0% -55.0% -60. 9% -73.6%
B eyond C ommerce, Inc. US D B Y OC OT C B B 18.0 0.40 -11.1% -57.9% -72.2% -60.4% -87. 9% -87.9%
B right T hings plc GB P AIM:B G T A IM 4.1 0.01 -5.5% -13.3% -5.8% -3.7% -25. 7% -48.0%
B roadW ebA s ia Inc. US D BWBA OT C P K 19.5 0.23 -22.8% -22.8% -54.9% -77.2% -84. 7% -92.1%
C DC C orp. US D C H IN.A Nas da qG S 150.7 1.42 0. 0% -14.5% 14.5% 40.6% -48. 4% -55.2%
C ha ngyou.com Limited US D C Y OU Nas da qG S 2, 068.6 37.61 -5.6% -9.3% 39.5% NM NM -19.7%
C hina G a tewa y C orporation US D CGWY OT C P K 0.3 0.02 -25.0% 650.0% 650.0% 650.0% -50. 0% -57.1%
C hines e G a mer International TWD G T S M:3083 GTS M 1, 089.6 430.00 -3.6% 28.4% 127.5% 374.6% 523. 2% -7.1%
C LIC K E R Inc. US D CLK Z OT C B B 1.3 0.02 529.6% 553.8% 183.3% -62.2% -98. 0% -98.0%
C ornerW orld C orpora tion US D CW R L OT C B B 3.9 0.06 -14.3% -33.3% -57.1% -87.2% -85. 4% -92.4%
C yberplex Inc. C AD T S X: C X TS X 88.9 1.59 2. 6% -14.5% 35.9% 354.3% 183. 9% -20.1%
DADA S pA E UR C M:DA CM 139.1 6.15 -1.3% 5.5% 21.2% -9.0% -38. 5% -50.6%
DXN Holdings B hd MY R DXN K LS E 22.4 0.35 -5.4% -13.6% 11.1% 14.8% -4.1% -25.5%
Dibz Interna tional, Inc. US D DIB Z OT C P K 0.0 0.00 -90.0% -90.0% -90.0% -98.0% -98. 0% -98.0%
DigitalP os t Intera ctive, Inc. US D DG LP OT C B B 3.0 0.04 -7.0% 81.8% 233.3% 60.0% -57. 9% -75.0%
DigitalT own, Inc. US D DG T W OT C B B 54.2 2.00 -2.4% -20.0% -20.0% -25.9% -33. 3% -67.2%
Dolphin Digital Media, Inc. US D DP DM OT C B B 23.3 0.45 45.2% -10.0% -21.1% -30.8% NM -60.2%
E olith C o. L td. KR W A041060 K OS E 41.8 755.00 -5.0% -3.2% 11.0% 30.2% -12. 7% -34.9%
E xtens ions , Inc. US D E XT I OT C P K 4.4 0.10 -50.0% -33.3% -33.3% -89.9% -33. 3% -90.1%
F luid Mus ic C anada, Inc. C AD T S X: F MN TS X 29.5 0.65 -17.7% -8.5% 97.0% 109.7% -56. 7% -67.3%
F rogs ter Intera ctive P ictures AG E UR FR G XT R A 37.7 11.50 -2.7% 44.1% 38.4% 121.6% 145. 7% -7.6%
G amania Digita l E ntertainment C o., L td. TWD 6180 GTS M 252.6 55.20 -6.9% -3.8% 62.4% 148.6% 111. 1% -12.0%
G ameO n C o L td. JPY 3812 TS E 106.6 102, 000 -9.7% -8.6% 9.4% -14.9% -25. 5% -37.6%
G eoS entric Oyj E UR G E O1V H LS E 50.1 0.04 0. 0% -20.0% 33.3% 33.3% -33. 3% -42.9%
G ia nt Interactive G roup, Inc. US D GA NY S E 1, 705.2 7.55 -4.3% -12.4% -1.0% 32.5% -30. 8% -35.1%
G igaMedia L td. US D G IG M Nas da qG S 295.5 5.42 -1.1% 0.6% -19.6% -17.3% -58. 7% -59.8%
G ra vity C o., Ltd US D GR VY Nas da qG M 40.3 1.45 33.0% 20.8% 52.6% 145.8% 51.0% -27.1%
G ree, Inc. JPY T S E :3632 TS E 1, 557.1 6, 450 -12.8% 5.2% 16.8% 28.2% NM -16.3%
G ungH o Online E ntertainment, Inc. JPY 3765 OS E 229.7 185, 500 -26.4% -17.6% 52.9% 78.4% 5.4% -33.7%
H anbitS oft, Inc. KR W A047080 K OS E 72.4 4, 325 -6.4% -9.9% -9.4% 28.7% 29.1% -34.9%
IAC /InterA ctiveC orp. US D IA C I Nas da qG S 2, 431.3 16.11 -0.2% -1.8% -1.9% 8. 5% -54. 9% -68.1%
IAS E nergy, Inc. US D IA S C . A OT C B B 10.5 0.15 -21.1% -34.8% 25.0% 614.3% -25. 0% -57.1%
is eemedia Inc. C AD IE E T S XV 4.4 0.10 25.0% 33.3% 0.0% 5. 3% -41. 2% -60.0%
J umbuck E ntertainment P ty Ltd. AU D AS X: J MB AS X 14.6 0.38 -2.6% -9.5% -20.8% -2.6% -37. 7% -38.7%
J umpT V Inc. C AD T S X: J T V TS X 68.8 0.70 -5.4% -6.7% 55.6% 133.3% -33. 3% -45.3%
K AB Dis tribution Inc. C AD T S X: K AB TS X 76.1 0.63 -3.1% 1.6% 8.6% 59.5% -4.5% -30.8%
K ings oft C o. L td. HK D 3888 S E HK 766.3 5.47 -6.5% 2.4% 60.9% 98.2% 51.5% -13.0%
L ingo Media C orpora tion C AD T S XV :LM T S XV 12.8 1.19 0. 0% 5.3% 43.4% 19.0% -33. 9% -38.0%
L iveW orld Inc. US D LV W D OT C P K 1.7 0.06 -8.3% -63.3% -57.7% -26.7% -73. 8% -82.8%
L ookS mart, L td. US D LO OK Nas da qG M 19.5 1.14 -7.3% -8.8% -4.2% -18.6% -54. 6% -70.5%
Ma gnitude Information S ys tems Inc. US D MAG Y OT C B B 4.1 0.01 -3.2% -10.0% -10.0% -66.7% -52. 9% -70.0%
Mixi, Inc. JPY 2121 TS E 1, 005.4 605, 000 2. 5% 28.7% 60.5% 8. 4% -8.6% -34.3%
Modern T imes G roup Mtg AB SEK MT G B OM 1, 841.4 221.00 -0.5% -0.9% 37.3% 53.7% -33. 0% -43.4%
MO K O .mobi L imited AU D MK B AS X 4.7 0.07 -6.7% 6.1% -28.6% 40.0% 40.0% -30.0%
Myriad G roup AG C HF MY R N S WX 92.2 4.70 0. 0% -5.8% 11.9% -21.7% -53. 9% -53.9%
NE O W IZ G ames C orporation KR W A095660 K OS E 249.1 31, 000 -3.6% -8.7% -7.5% 201.7% 181. 8% -26.2%
NetDra gon W ebS oft, Inc. HK D 777 S E HK 388.0 5.69 0. 9% 11.1% 31.7% 93.5% -42. 6% -43.3%
Netea s e. com Inc. US D NT E S Nas da qG S 4, 496.3 35.01 3. 2% -2.1% 19.9% 105.2% 67.8% -9.6%
NeXplore C orpora tion US D NXP C OT C P K 32.4 0.58 -3.3% -15.9% -19.4% -42.0% -26. 6% -60.0%
Ngi G roup Inc. JPY 2497 TS E 40.9 30, 550 -20.2% -10.9% 16.6% -40.3% -63. 5% -76.0%
Northgate T echnologies Limited INR 590057 BSE 20.7 29.05 -20.7% -34.4% -32.8% -42.1% -90. 3% -90.8%
O pen T ext C orp. US D OT E X Nas da qG S 1, 894.4 36.00 0. 5% -1.0% 0.4% 17.6% 19.6% -7.9%
O penwa ve S ys tems Inc. US D OP W V Nas da qG S 190.8 2.29 1. 8% -3.4% 77.5% 213.7% 53.7% -7.3%
P erfect W orld C o., Ltd. US D PWRD Nas da qG S 1, 399.8 28.78 0. 1% 13.9% 75.6% 76.1% 17.9% -15.1%
P NI Digital Media Inc. C AD T S XV :P N T S XV 42.8 1.45 0. 0% -14.7% -5.2% -17.1% -57. 1% -59.9%
Q uepa s a C orp. US D QP S A OT C B B 12.7 1.00 -1.0% 47.1% 8.7% -46.5% -52. 4% -71.1%
O AO R B C Information S ys tems US D R BCI R TS 104.0 0.75 -18.7% -44.4% 50.0% 31.6% -90. 5% -91.2%
S ha nda Interactive E nterta inment L td. US D S NDA Nas da qG S 3, 459.3 51.81 -4.1% -9.8% 12.0% 97.8% 113. 5% -20.3%
S hutterfly, Inc. US D S F LY Nas da qG S 302.1 12.00 -8.0% -10.5% 13.2% 77.8% 2.7% -21.4%
S K C ommunications C o. , L td. KR W A066270 K OS E 289.6 9, 050 -8.4% -22.3% -10.4% 39.9% -35. 1% -43.6%
S NA P Intera ctive, Inc. US D S TVI OT C B B 4.9 0.45 0. 0% -35.7% -40.0% -52.1% -34. 8% -58.3%
S NM G loba l H oldings US D S NMN OT C P K 0.0 0.00 -77.1% 6.7% 700.0% 300.0% -99. 9% -99.9%
S ocial Media V enures , Inc. US D S MV I OT C P K 0.0 0.32 28.0% 3100. 0% -63.6% -69.2% 28.0% -93.6%
S ocialwis e, Inc. US D S CLW OT C B B 34.7 0.80 21.2% 11.1% 128.6% -3.6% -69. 0% -71.7%
S ohu.com Inc. US D S O HU Nas da qG S 2, 254.5 58.92 0. 2% -11.5% 18.2% 50.7% -22. 2% -33.0%
S pa rk Networks , Inc. US D LO V A ME X 49.4 2.40 0. 8% 8.1% 4.3% -4.4% -42. 0% -46.2%
S pectrumDNA, Inc. US D S P XA OT C B B 7.3 0.15 -40.0% -25.0% 0.0% -21.1% NM -75.0%
T encent H oldings Ltd. HK D 700 S E HK 20,272. 6 87.05 -0.6% -3.1% 41.0% 96.9% 38.2% -9.1%
T he P a rent C ompany US D K IDS . Q OT C P K 0.5 0.02 -33.3% -39.4% 33.3% -69.2% -99. 0% -99.3%
T he9 L imited US D NC T Y Nas da qG S 232.0 8.65 -7.2% -21.9% -34.6% -37.3% -67. 4% -69.6%
T heS treet.com, Inc. US D TS CM Nas da qG M 61.1 2.00 -0.2% -5.5% -15.1% -37.1% -67. 9% -72.8%
T ota l S port Online A S NO K T OS O O T C NO 0.1 0.03 0. 0% 0.0% -25.0% -25.0% -40. 0% -40.0%
T ree.C om, Inc. US D TR E E Nas da qG M 103.5 9.59 2. 8% -3.9% 81.3% 121.5% NM -26.6%
U nis erve C ommunica tions C orp. C AD T S XV :US S T S XV 1.5 0.07 -12.5% 40.0% 75.0% 40.0% -74. 1% -73.1%
U nited O nline Inc. US D UNT D Nas da qG S 585.1 7.00 12.0% 3.7% 38.9% 13.1% -33. 0% -42.9%
U OMO Media, Inc US D UO MO OT C B B 9.0 0.11 -22.2% -41.7% 31.3% 50.0% -78. 6% -90.1%
V alueC lick Inc. US D V CLK Nas da qG S 901.9 10.37 4. 7% -14.8% 8.9% 77.6% 1.7% -29.4%
V OIS , Inc. US D V O IS OT C B B 8.3 0.01 -42.9% 96.1% 233.3% 150.0% -76. 5% -81.8%
W ebzen Inc. US D W ZE N Nas da qG M 38.9 3.28 -9.1% -9.4% -2.1% 241.7% 22.8% -29.9%
W izzard S oftwa re C orporation US D W ZE A ME X 24.4 0.51 0. 0% -23.9% -8.9% -31.0% -66. 0% -71.0%
W orlds .com Inc. US D W DDD OT C B B 7.9 0.15 30.4% 50.0% -25.0% 0. 0% -46. 4% -60.5%
W oozyF ly, Inc. US D W ZY F OT C B B 2.6 0.15 0. 0% NM 0.0% 0. 0% NM -96.3%
W ynds torm C orpora tion US D W Y ND OT C P K 1.8 0.10 150.0% -80.4% -41.2% -16.7% -66. 7% -83.3%
XING A G E UR O1B C XT R A 221.6 30.13 0. 3% -10.1% 7.5% -8.4% 6.3% -16.3%
Y eda ngOnline C orp. KR W A052770 K OS E 94.7 7, 900 -12.1% -13.8% -18.2% 14.5% -17. 9% -36.3%
Y nk K orea Inc. KR W A023770 K OS E 25.3 6, 200 -7.3% -5.3% 21.8% 40.3% -37. 9% -50.0%
ZipLocal Inc. C AD T S XV :ZIP T S XV 0.3 0.01 0. 0% 0.0% -66.7% -50.0% -95. 5% -95.5%
H igh 1233.3% 3100. 0% 1328. 6% 650.0% 523. 2% -7.1%
L ow -90.0% -90.0% -90.0% -98.0% -99. 9% -99.9%
Average 583.6 15.3% 56.9% 49.5% 57.0% -14.6% -51.8%
Media n -3.2% -8.6% 11.5% 19.0% -34. 8% -52.3%

Figure 19. Price Performance
Source. Capital IQ

Valuation Multiples
P rimary US D Market TE V/L TM TE V/ NTM TE V/L TM TE V/NTM
C ompany Name S ec tor C ountry E xc hange Ticker C ap ($m) R evenue R evenue E B ITDA E B ITDA P /L TM E P S P /NTM E P S P /TangB V
Accelerize New Media, Inc. Direct Marketing U nited S ta tes OTCB B AC LZ 15.2 4.9x - - - - - -
Actoz S oft C o., Ltd. G aming S outh K orea K OS E A052790 169.8 1.6x - 7. 4x - 26.6x - 3.0x
AQ Intera ctive, Inc. G aming J apan TS E 3838 32.4 0.0x - 0. 6x - - - 0.5x
As s ocia ted Media Holdings Inc. Mobile U nited S ta tes OTCP K AS MH 0.9 19.2x - - - - - -
B igs tring C orp. Ins ta nt Mes s aging U nited S ta tes OTCB B BSGC 2.1 48.3x - - - - - -
B etawave C orpora tion Media U nited S ta tes OTCB B B W AV 2.6 - - - - - - 0.4x
B eyond C ommerce, Inc. S ocial Networking U nited S ta tes OTCB B B YOC 18.0 3.2x - - - - - -
B right T hings plc S ocial Networking U nited K ingdom AIM AIM:B G T 4.1 15.2x - - - - - -
B roadW ebAs ia Inc. S ocial Networking U nited S ta tes OTCP K BWBA 19.5 - - - - - - -
C DC C orp. G aming H ong K ong N as da qG S C HIN.A 150.7 0.4x 0.4x 5. 3x 5.8x - 10.3x -
C hangyou.com Limited G aming C hina N as da qG S C Y OU 2,068.6 8.5x 6.4x 13.9x 10.9x 14.1x 13.6x 12.9x
C hina G atewa y C orpora tion Mobile U nited S ta tes OTCP K CGW Y 0.3 0.0x - - - - - -
C hines e G amer Interna tional G aming T a iwa n GTS M G T S M:3083 1,089.6 18.4x - 32.9x - 42.5x - 16.0x
C L IC K E R Inc. Direct Marketing U nited S ta tes OTCB B C LK Z 1.3 0.1x - 0. 3x - - - -
C ornerW orld C orporation C ontent U nited S ta tes OTCB B CW R L 3.9 4.1x - - - - - -
C yberplex Inc. A dvertis ing C ana da TS X T S X: C X 88.9 1.2x 0.9x 11.7x 7.7x 8.9x 10.4x 8.8x
DA DA S pA S ocial Networking Italy CM C M:DA 139.1 0.8x - 5. 5x - 23.6x - -
DXN Holdings B hd S ocial Networking Mala ys ia K LS E DXN 22.4 0.5x - 3. 4x - 4.0x - 0.5x
Dibz Interna tiona l, Inc. S NS Apps U nited S ta tes OTCP K DIB Z 0.0 - - - - - - -
DigitalP os t Interactive, Inc. C ontent U nited S ta tes OTCB B DG L P 3.0 6.3x - - - - - -
DigitalT own, Inc. S ocial Networking U nited S ta tes OTCB B DG T W 54.2 - - - - - - -
Dolphin Digital Media, Inc. S ocial Networking U nited S ta tes OTCB B DP DM 23.3 31.3x - - - - - -
E olith C o. L td. G aming S outh K orea K OS E A041060 41.8 3.1x - - - - - 4.2x
E xtens ions , Inc. C ontent U nited S ta tes OTCP K E XT I 4.4 - - - - - - -
F luid Mus ic C a nada, Inc. Media U nited S ta tes TS X T S X:F MN 29.5 4.1x - - - - - 3.0x
F rogs ter Interactive P ictures A G G aming G erma ny XT R A FR G 37.7 11.2x - - - - - 5.7x
G amania Digital E ntertainment C o., Ltd. G aming T a iwa n GTS M 6180 252.6 1.8x - 11.1x - 27.1x - 3.3x
G ameO n C o Ltd. G aming J apan TS E 3812 106.6 0.5x - 2. 3x - 12.0x - 1.4x
G eoS entric Oyj Mobile F inland H LS E G E O1V 50.1 7.8x - - - - - 8.6x
G iant Interactive G roup, Inc. G aming C hina NY S E GA 1,705.2 - - - - 1.8x 12.5x 0.3x
G igaMedia Ltd. G aming T a iwa n N as da qG S G IG M 295.5 1.2x 1.2x - 5.7x 11.7x 10.9x 2.5x
G ravity C o., Ltd G aming S outh K orea N as da qG M GR VY 40.3 - - - - 0.0x - 0.0x
G ree, Inc. S ocial Networking J apan TS E T S E : 3632 1,557.1 46.3x - - - - - 18.7x
G ungH o O nline E nterta inment, Inc. Media J apan OS E 3765 229.7 1.8x - 10.0x - - - 31.5x
Ha nbitS oft, Inc. G aming S outh K orea K OS E A047080 72.4 1.1x - - - - - 2.3x
IAC /InterActiveC orp. Media U nited S ta tes N as da qG S IAC I 2,431.3 0.4x 0.4x 12.8x 3.5x 20.7x 31.4x 1.1x
IAS E nergy, Inc. V ideo C ana da OTCB B IAS C .A 10.5 - - - - - - -
is eemedia Inc. C ontent C ana da T S XV IE E 4.4 2.4x - - - - - 3.9x
J umbuck E ntertainment P ty L td. S ocial Networking Aus tra lia AS X AS X:J MB 14.6 0.7x - 1. 9x - 6.1x - 1.5x
J umpT V Inc. V ideo C ana da TS X T S X:J T V 68.8 3.2x - - - - - 4.1x
K A B Dis tribution Inc. C ontent C ana da TS X T S X:K AB 76.1 1.1x 1.1x 9. 6x 5.9x - - -
K ings oft C o. Ltd. G aming C hina S E HK 3888 766.3 5.5x - 13.7x - 17.2x - 4.2x
Lingo Media C orpora tion L earning C ana da T S XV T S XV : LM 12.8 13.2x - - - - - 13.9x
LiveW orld Inc. S ocial Networking U nited S ta tes OTCP K LV W D 1.7 0.1x - - - - - 0.7x
LookS ma rt, L td. Direct Marketing U nited S ta tes N as da qG M L OOK 19.5 - - - - - - 0.7x
Magnitude Information S ys tems Inc. S ocial Networking U nited S ta tes OTCB B MA G Y 4.1 - - - - - - -
Mixi, Inc. S ocial Networking J apan TS E 2121 1,005.4 6.8x - 19.1x - 48.3x - 7.2x
Modern T imes G roup Mtg AB Media S weden OM MT G B 1,841.4 1.4x 1.3x 9. 2x 11.1x 5.6x 11.9x -
MOK O .mobi Limited S ocial Networking Aus tra lia AS X MK B 4.7 3.2x - - - - - 3.6x
Myriad G roup AG Mobile S witzerla nd SWX MY R N 92.2 2.6x - - - - - 4.2x
NE OW IZ G ames C orporation G aming S outh K orea K OS E A095660 249.1 1.3x - 4. 7x - 28.5x - 14.4x
NetDra gon W ebS oft, Inc. G aming C hina S E HK 777 388.0 2.9x - 7. 4x - 13.9x - 2.1x
Netea s e.com Inc. G aming C hina N as da qG S NT E S 4,496.3 - - - - 2.6x 15.6x 0.8x
NeXplore C orporation C ontent U nited S ta tes OTCP K NXP C 32.4 - - - - - - -
Ngi G roup Inc. Media J apan TS E 2497 40.9 - - - - - - 0.9x
Northgate T echnologies Limited Direct Marketing India BS E 590057 20.7 0.2x - - - - - -
O pen T ext C orp. C ollabora tion C ana da N as da qG S OT E X 1,894.4 2.5x 2.3x 9. 8x 8.5x 29.6x 13.6x -
O penwave S ys tems Inc. Mobile U nited S ta tes N as da qG S OP W V 190.8 0.4x 0.5x - 4.8x - 35.2x 2.7x
P erfect W orld C o., Ltd. G aming C hina N as da qG S PWRD 1,399.8 0.2x 1.1x 0. 4x 2.1x 2.4x 11.0x 0.9x
P N I Digital Media Inc. Digita l Ima ging C ana da T S XV T S XV :P N 42.8 2.2x - - - - 16.8x 18.2x
Q uepa s a C orp. S ocial Networking U nited S ta tes OTCB B QP S A 12.7 - - - - - - -
O AO R B C Information S ys tems Media R us s ia R TS R BCI 104.0 0.0x - 0. 2x - - - -
S handa Interactive E nterta inment Ltd. G aming C hina N as da qG S S NDA 3,459.3 0.0x 0.1x 0. 1x 0.3x 2.8x 14.5x 1.1x
S hutterfly, Inc. Digita l Ima ging U nited S ta tes N as da qG S S FLY 302.1 1.1x - 8. 3x 6.4x - - 1.8x
S K C ommunications C o., Ltd. S earch S outh K orea K OS E A066270 289.6 1.6x - 25.3x - - - -
S N AP Interactive, Inc. Dating U nited S ta tes OTCB B S TVI 4.9 1.0x - 3. 7x - 7.4x - 2.9x
S N M G lobal Holdings Media U nited S ta tes OTCP K S NMN 0.0 1.1x - - - - - -
S ocial Media V enures , Inc. S ocial Networking U nited S ta tes OTCP K S MV I 0.0 0.0x - - - - - -
S ocialwis e, Inc. S ocial Networking U nited S ta tes OTCB B S CLW 34.7 - - - - - - 45.1x
S ohu.com Inc. G aming C hina N as da qG S S O HU 2,254.5 4.1x 3.6x 9. 4x 8.2x 12.7x 16.2x 6.0x
S park N etworks , Inc. S ocial Networking U nited S ta tes AME X L OV 49.4 0.9x - 4. 2x - 15.1x - -
S pectrumDN A, Inc. Media U nited S ta tes OTCB B S P XA 7.3 - - - - - - 19.1x
T encent Holdings Ltd. P orta l C hina S E HK 700 20,272.6 18.3x - 38.2x - 48.6x - 20.3x
T he P a rent C ompany Media U nited S ta tes OTCP K K IDS .Q 0.5 0.2x - - - - - -
T he9 L imited G aming C hina N as da qG S NC T Y 232.0 - - - - 0.7x 11.9x 0.1x
T heS treet.com, Inc. Media U nited S ta tes N as da qG M TS CM 61.1 - - - - - - 0.8x
T otal S port Online AS Media N orway O T C NO T OS O 0.1 4.6x - - - - - -
T ree.C om, Inc. P orta l U nited S ta tes N as da qG M TREE 103.5 0.4x 0.4x - 5.0x - - 1.4x
Unis erve C ommunications C orp. S ocial Networking C ana da T S XV T S XV :US S 1.5 0.2x - - - - - -
United Online Inc. Media U nited S ta tes N as da qG S U NT D 585.1 1.1x 0.9x 4. 9x 3.6x - 9.3x -
UO MO Media, Inc Media C ana da OTCB B UO MO 9.0 14.7x - - - - - -
V a lueC lick Inc. Media U nited S ta tes N as da qG S V CLK 901.9 1.3x 1.5x 7. 6x 5.8x - 16.5x 7.3x
V O IS , Inc. S ocial Networking U nited S ta tes OTCB B V OIS 8.3 - - - - - - 28.6x
W ebzen Inc. G aming S outh K orea N as da qG M W ZE N 38.9 - - - - - - 0.0x
W izzard S oftware C orporation P odca s ting U nited S ta tes AME X W ZE 24.4 4.6x - - - - - -
W orlds .com Inc. C ontent U nited S ta tes OTCB B W DDD 7.9 - - - - 51.2x - -
W oozyF ly, Inc. S ocial Networking U nited S ta tes OTCB B W ZY F 2.6 - - - - - - -
W ynds torm C orporation C ontent U nited S ta tes OTCP K W Y ND 1.8 - - - - - - -
XIN G AG S ocial Networking G erma ny XT R A O1B C 221.6 3.2x - 10.3x - 21.1x - 7.0x
Y eda ngO nline C orp. G aming S outh K orea K OS E A052770 94.7 2.0x - 9. 3x - 10.5x - 3.6x
Y nk K orea Inc. G aming S outh K orea K OS E A023770 25.3 2.2x - 21.4x - - - 1.4x
ZipLocal Inc. Directory C ana da T S XV T S XV :ZIP 0.3 0.6x - - - - - -
High 20,272.6 48.3x 6.4x 38.2x 11.1x 51.2x 35.2x 45.1x
Low 0.0 0.0x 0.1x 0. 1x 0.3x 0.0x 9.3x 0.0x
Average 583.6 5.3x 1.5x 9.2x 5.9x 17.2x 15.4x 6.8x
Median 40.6 1.8x 1.1x 8. 0x 5.8x 13.3x 13.6x 3.1x

Figure 20. Valuation Comparison
Source. Capital IQ

S ummary by C ountry
C ompany Name US D Market C ap ($m) Avg US D Market C ap ($m) US D L TM Total R ev ($m) US D L TM Total E B ITDA ($m) E B ITDA %

United S tates 38 C hina 37, 042. 6 C hina 3,704. 3 C hina 3,840. 1 C hina 1, 774. 3 C hina 37. 3%
C a na da 10 U nited S ta tes 4, 963. 2 S weden 1,841. 4 United S tates 3,795. 5 S weden 260. 7 A us tralia 37. 2%
C hina 10 J a pan 2, 972. 2 T aiwan 545. 9 S weden 1,702. 0 United S tates 245. 7 T aiwan 36. 3%
S outh K orea 9 C anada 2, 166. 7 J apan 495. 4 C a na da 970. 2 C a na da 193. 3 J apan 21. 9%
J a pa n 6 S weden 1, 841. 4 C anada 216. 7 S outh K orea 648. 6 J a pa n 112. 1 S weden 15. 3%
T a iwa n 3 T a iwa n 1, 637. 8 Hong K ong 150. 7 J a pa n 515. 3 S outh K orea 87. 8 Italy 14. 6%
Aus tralia 2 S outh K orea 1, 021. 7 Ita ly 139. 1 Hong K ong 389. 9 T a iwa n 51. 9 Mala ys ia 13. 8%
G erma ny 2 G ermany 259. 4 U nited S ta tes 130. 6 T a iwa n 364. 1 Ita ly 34. 3 S outh K orea 10. 0%
S witzerla nd 1 Hong K ong 150. 7 G ermany 129. 7 Ita ly 234. 4 Hong K ong 30. 8 Hong K ong 7. 9%
Hong K ong 1 Ita ly 139. 1 S outh K orea 113. 5 R us s ia 144. 6 R us s ia 18. 9 Norway 2. 9%
F inla nd 1 R us s ia 104. 0 R us s ia 104. 0 India 114. 3 Ma lays ia 10. 6 C anada 2. 6%
Ita ly 1 S witzerla nd 92. 2 S witzerla nd 92. 2 Ma lays ia 76. 8 G erma ny 10. 4 S witzerla nd 1. 9%
United K ingdom 1 F inland 50. 1 F inland 50. 1 G erma ny 56. 0 Aus tralia 2. 9 U nited S ta tes -6. 5%
India 1 Malays ia 22. 4 Malays ia 22. 4 S witzerla nd 40. 0 S witzerla nd 0. 8 India -23. 5%
S weden 1 India 20. 7 India 20. 7 Aus tralia 15. 0 Norwa y -1. 0 U nited K ingdom N/A
R us s ia 1 Aus tralia 19. 3 Aus tralia 9. 7 F inla nd 5. 9 United K ingdom -1. 8 R us s ia N/A
Ma lays ia 1 U nited K ingdom 4. 1 U nited K ingdom 4. 1 Norwa y 2. 1 F inla nd -15. 3 G ermany N/A
Norwa y 1 Norway 0. 1 Norway 0. 1 United K ingdom 0. 3 India -26. 8 F inland N/A

G rand Total 90 G rand Total 52,507.6 G rand Total 583.4 G rand Total 12,915.1 G rand Total 2,789.5 G rand Total 8.1%

Figure 21. Comparison by Country
Source. Capital IQ

S ummary by E xc hange
C ompany Name US D Market C ap ($m) Avg US D Market C ap ($m) US D L TM Total R ev ($m) US D L TM Total E B ITDA ($m) E B ITDA %

OT C B B 18 S E HK 21, 427. 0 S E HK 7,142. 3 OM 1,702. 0 Na s daqG S 1, 692. 8 S E HK 39. 9%
Na s daqG S 14 Nas da qG S 20, 662. 0 OM 1,841. 4 Na s daqG S 484. 2 S E HK 663. 2 AS X 37. 2%
OT C P K 11 TS E 2, 742. 5 NY S E 1,705. 2 S E HK 473. 3 OM 260. 7 GTS M 36. 3%
K OS E 7 OM 1, 841. 4 Nas da qG S 1,475. 9 CM 234. 4 TS E 92. 1 TSE 22. 7%
TS E 5 NY S E 1, 705. 2 GTS M 671. 1 NY S E 219. 0 K OS E 76. 3 A ME X 20. 6%
Na s daqG M 5 GTS M 1, 342. 3 TSE 548. 5 RTS 144. 6 GTS M 51. 9 OS E 18. 0%
TS X 4 K OS E 942. 6 OS E 229. 7 BSE 114. 3 CM 34. 3 Nas da qG S 15. 4%
T S XV 4 Nas da qG M 263. 3 CM 139. 1 OS E 111. 4 OS E 20. 0 OM 15. 3%
S E HK 3 TS X 263. 2 K OS E 134. 7 GTS M 90. 3 RTS 18. 9 CM 14. 6%
AME X 2 XT R A 259. 4 XT R A 129. 7 K OS E 83. 3 K LS E 10. 6 K LS E 13. 8%
AS X 2 OS E 229. 7 R TS 104. 0 Na s daqG M 81. 8 XT R A 10. 4 T S XV 7. 7%
XT R A 2 OT C B B 222. 9 SWX 92. 2 TS E 80. 8 AME X 6. 4 K OS E 7. 1%
GTS M 2 CM 139. 1 TSX 65. 8 K LS E 76. 8 AS X 2. 9 O T C NO 2. 9%
SWX 1 R TS 104. 0 Nas da qG M 52. 7 TS X 41. 1 SWX 0. 8 S WX 1. 9%
HL S E 1 SWX 92. 2 HLS E 50. 1 SWX 40. 0 NY S E 0. 0 Nas da qG M 1. 1%
CM 1 AME X 73. 7 AME X 36. 9 AME X 29. 9 OT C NO -1. 0 OTCB B -6. 3%
BS E 1 OT C P K 61. 5 K LS E 22. 4 XT R A 28. 0 AIM -1. 8 OTCP K -11. 6%
NY S E 1 HLS E 50. 1 BS E 20. 7 OT C P K 18. 9 TS X -3. 2 TSX -14. 8%
OS E 1 K LS E 22. 4 OT C B B 12. 4 AS X 7. 5 Na s daqG M -3. 7 BSE -23. 5%
AIM 1 BS E 20. 7 AS X 9. 7 T S XV 6. 9 T S XV -8. 3 XT R A N/A
OM 1 AS X 19. 3 OT C P K 5. 6 HL S E 5. 9 HL S E -15. 3 NY S E N/A
RTS 1 T S XV 19. 0 T S XV 4. 8 OT C NO 2. 1 BSE -26. 8 R TS N/A
K LS E 1 AIM 4. 1 AIM 4. 1 OT C B B 2. 0 OT C P K -32. 7 A IM N/A
OT C NO 1 OT C NO 0. 1 OT C NO 0. 1 AIM 0. 3 OT C B B -59. 0 HLS E N/A

G rand Total 90 G rand Total 52,507.6 G rand Total 583.4 G rand Total 12,915.1 G rand Total 2,789.5 G rand Total 8.1%

Figure 22. Comparison by Exchange
Source. Capital IQ

Financ ing - L as t Three Months (US $ m)
Month C ompany Name C ountry Angel/S eed Debt financ ing P IP E S eries A S eries B S eries C S eries D G rand Total
May-09 Fac ebook US A 200. 0 200. 0
One Net E ntertainment C hina 10. 0 10. 0 20. 0
C yberplex C anada 12. 9 12. 9
Peer39 US A 10. 5 10. 5
OpenX UK 10. 0 10. 0
Imeem US A 8. 8 8. 8
E veryZing US A 8. 3 8. 3
WonderHill US A 7. 0 7. 0
B logHer Inc . US A 7. 0 7. 0
Gis t US A 6. 8 6. 8
Fuhu Inc . US A 6. 3 6. 3
Azuki S ys tems US A 6. 0 6. 0
I L ove R ewards C anada 5. 9 5. 9
TimeB ridge US A 5. 0 5. 0
OL X US A 5. 0 5. 0
Doc uS ign US A 5. 0 5. 0
Medialets US A 4. 0 4. 0
R es onate Networks US A 2. 0 2. 0
Mo'Minis Is rael 1. 5 1. 5
VoxP op US A 1. 5 1. 5
Loop'd Network US A 0. 8 0. 8
May-09 Total 13.6 10.0 22.9 23.3 18.7 40.8 205.0 334.1

J un-09 S ugar Inc . US A 16. 0 16. 0
Tumri US A 15. 0 15. 0
B oku US A 13. 0 13. 0
Wimba US A 12. 0 12. 0
Grab Networks US A 12. 0 12. 0
Goojet S AS F rance 8. 5 8. 5
AdMeld Inc . US A 8. 0 8. 0
beeTV US A 8. 0 8. 0
blueK iwi S oftware S A F rance 6. 5 6. 5
Nokeena US A 6. 5 6. 5
S ens e Networks US A 6. 0 6. 0
Gather US A 5. 3 5. 3
MojoP ages US A 5. 0 5. 0
Taomee C hina 5. 0 5. 0
Animoto US A 4. 4 4. 4
GameG round Is rael 4. 1 4. 1
R ingR evenue US A 3. 5 3. 5
C rowdc as t US A 3. 0 3. 0
YuMe US A 2. 9 2. 9
eR epublik S pain 2. 8 2. 8
News er L L C US A 2. 5 2. 5
C lic kFuel US A 2. 5 2. 5
Inigral US A 2. 4 2. 4
AdE x Media US A 2. 3 2. 3
GR OU.P S US A 2. 1 2. 1
Yapta US A 2. 0 2. 0
OneTXT US A 2. 0 2. 0
my6s ens e Is rael 2. 0 2. 0
I L ove R ewards C anada 1. 8 1. 8
C liqs et US A 1. 5 1. 5
AdW hirl US A 1. 0 1. 0
LiquidP lanner US A 1. 0 1. 0
Glubble Netherlands 1. 0 1. 0
Pic aboo US A 1. 0 1. 0
TodaC ell Is rael 1. 0 1. 0
Mas hL ogic US A 0. 5 0. 5
J un-09 Total 39.3 15.3 18.5 67.8 34.0 5.3 180.1

J ul-09 Pandora Media US A 35. 0 35. 0
Quic kP lay Media C anada 12. 0 12. 0
Metavers um G erma ny 6. 3 6. 3
S tyleC as ter US A 4. 0 4. 0
Nexage US A 4. 0 4. 0
TweetDec k UK 3. 2 3. 2
C oTweet US A 1. 1 1. 1
People C apital US A 0. 5 0. 5
J ul-09 Total 7.2 5.1 6.8 35.0 12.0 66.1

Grand Total 60.1 10.0 38.2 46.9 93.2 109.8 222.3 580.3

Figure 23. Financing, Last Three Months

C ompany Des c riptions - C urrent Month C apital Market Ac tivity
C ompany HQ Webs ite Des c ription
AdL ink Internet Media AG G ermany www.adlink.net AdLINK Internet Media AG , through its s ubs idiaries , provides digita l marketing s olutions in E urope a nd internationa lly. T he compa ny
s pecializes in dis play, affiliate, permis s ion, direct, a nd doma in ma rketing. Its Dis pla y Ma rketing s egment provides online, direct a nd dia logue-
bas ed, a nd permis s ion/ema il ma rketing s olutions . T his s egment’s portfolio compris es 4, 000 W eb s ites with a dvertis ing environment for
regiona l, na tiona l, and interna tional ca mpaigns . T he company’s Affiliate Ma rketing s egment operates as a broker between advertis ers a nd
W eb s ite publis hers . T his s egment a ls o offers profes s ional cons ulta tion, promotion options , a nd works hops . AdLINK Internet Media ’s
Doma in Ma rketing s egment operates a tra ding pla tform for the domain market, a s well as acts as a broker between doma in owners a nd
a dvertis ers . T he company wa s formerly known a s AdL INK Internet Media G mbH E urope and changed its name to AdL INK Internet Media AG
in 2000. AdLINK Internet Media wa s founded in 1996 a nd is hea dquartered in Montabaur, G ermany. AdLINK Internet Media AG is a
s ubs idiary of U nited Internet A G .
C oTweet United S tates www.cotweet.com C oT weet is a bus ines s front-end for T witter, enabling compa nies to engage in proa ctive ma rketing a nd res pons e-oriented cus tomer s ervice
a ctivities .

Hi-Media S .A. F ra nce wwww.hi-media.com Hi-Media S . A. opera tes a s a n advertis ing ma na gement compa ny in F ra nce. It markets a dvertis ing s pa ce to a dvertis ers on the Internet. T he
compa ny a ls o offers a ra nge of s ervices to digita l media publis hers , including direct ma rketing s ervices , which compris e direct marketing
media planning, email, mail, S MS a ddres s es lea s ing, a nd implementing intera ctive T V ca mpa igns ; a nd micro-pa yment technica l pla tform
a nd s ervices . In a ddition, it provides s ervices for pros pecting a nd canvas s ing of a dvertis ers . Hi-Media S . A. wa s founded by C yril
Zimmerma nn in 1996. It was formerly known as Hi-Media Multimedia and changed its name to Hi-Media S . A. in 2000. T he compa ny is ba s ed
in P a ris , F ra nce.
Metavers um G ermany www.metaversum.com Metavers um G mbH develops a nd opera tes T winity, a 3D online pla tform. T he T winity allows members to create a pers ona l a vatar, explore
virtua l cities , move into a 3D home, cha t with friends , a nd work together in E urope a nd internationa lly. Meta vers um G mbH has a s tra tegic
media pa rtners hip with zitty; and a s tra tegic pa rtners hip with B igpoint. T he compa ny wa s founded in 2006 and is bas ed in B erlin, G erma ny
with additional offices in K iev a nd S inga pore.

Nexage United S tates www.nexage.com NE X AG E , Inc. opera tes a s a wireles s a nd multimedia s oftwa re and s ervices compa ny in the United S ta tes a nd internationa lly. It focus es on
providing hos ted white la bel mobile video enterta inment, a dvertis ement, and s ocial networking s olutions for media compa nies , content
providers , a nd ca rriers . T he company offers P honeC a s t-P ro, which provides for the automa tic content inges tion, encoding, management,
publis hing, and delivery of s treaming mobile video content; P honecas t C lick-to-V ideo, a mobile advertis ing s olution for ad a gencies and
a dvertis ers to create mobile W eb pa ges and load videos for a mobile advertis ing ca mpaign; a nd MyC orner, a bra nded mobile video s ervice
with content for opera tors . NE X AG E , Inc. was founded in 2005 and is ba s ed in F remont, C alifornia.

P andora Media United S tates www.pandora.com P a ndora Media , Inc. , a n Internet radio compa ny, provides mus ic dis covery s ervices in the United S ta tes . T he compa ny taps mus ica l
collection to deliver s ervice on computer, in the home, a nd on mobile devices . It collects melody, ha rmony, ins trumentation, rhythm, vocals ,
a nd lyrics of a s ong. P andora Media, Inc. was formerly known as S a va ge B ea s t T echnologies . T he compa ny wa s founded in 2000 a nd is
bas ed in O a kland, C a lifornia .

P eople C apital United S tates www.people2capital.com T he P eople C a pital peer-to-peer s tudent loan lending pla tform facilita tes lending decis ions bas ed on a s tudent’s “potentia l” rather than credit
P eople Media United S tates www.peoplemedia.com P eople Media operates eople C apital platform generates online communities primarily gea red ll lendersdating. ll borrowers , not jus t “fa mily and
payment his tory. T he P more tha n 20 vertica lly focus ed liquidity in the ma rket by matching a towards with a

Quic kP lay Media C ana da www.quickplaymedia.com Q uickP lay Media, Inc. provides media ma na gement a nd dis tribution s olutions for mobile televis ion (T V ) and video s ervice compa nies . It
provides O penV ideo, a platform tha t offers a pplica tion integra tion for mobile opera tors , media companies , and technology pa rtners in North
America a nd E urope. T he compa ny a ls o offers managed s ervices , including inges tion a nd dis tribution of content, media ma nagement,
a pplica tion development, a nd reporting a nd s ettlement s ervices , a s well a s live a nd on-dema nd content s ervices . In a ddition, it provides
hos ted s olutions that integra te mobile T V /video s ervices into on-deck and off-deck mobile Internet s ites , a nd content s yndica tion s ervices .
T he compa ny was founded in 2004 and is hea dqua rtered in T oronto, C a nada. It has local s a les offices in North America and E urope.
S tyleC as ter United S tates www.stylecaster.com S tyleC a s ter Media G roup, L L C provides online fa s hion-lifes tyle informa tion s ervices . T he compa ny is ba s ed in New Y ork, New Y ork.

Tweetdec k United K ingdom www.tweetdeck.com T weetDeck, Inc. offers a des ktop a pplica tion to brea k twitter feeds into mana geable bite s ized pieces . Its application ena bles us ers to s plit
their main feed into topic or group s pecific columns a llowing a broader overview of the tweets . T he compa ny was founded in 2008 and is
bas ed in L ondon, the United K ingdom.

Figure 24. Company Descriptions
Source. Company reports, Capital IQ, Crunchbase

RELEVANT DISCLOSURES APPLICABLE TO: NONE

LIST OF DISCLOSURE TERMS:

1. None applicable.

ANALYST CERTIFICATION
Each analyst of Research Capital Corporation whose name appears in this report hereby certifies that (i) the
recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii)
no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or
recommendations expressed in this research report.

I n f o r ma t i o n a b o u t Re s e a r ch C a p i t a l C o r p o r a t i o n ’ s Ra t i n g S y s t e m, t h e d i s t r i b u t i o n o f o u r r e s e a r ch t o cl i e n t s a n d t h e p e r ce n t a g e o f r e c o m me n d a t i o n s wh i c h a r e i n e a c h
o f o u r r a t i n g c a t e g o r i e s i s a v a i l a b l e o n o u r we b si t e a t ww w. r e s e a r ch c a p i t a l . c o m.

T h e i n f o r ma t i o n c o n t a i n e d i n t h i s r e p o r t h a s b e e n d r a wn f r o m s o u r c e s b e l i e ve d t o b e r e l i a b l e b u t i t s a c cu r a c y o r co mp l e t e n e ss i s n o t g u a r a n t e e d , n o r i n p r o vi d i n g i t
d o e s R e s e a r c h Ca p i t a l C o r p o r a t i o n a s s u me a n y r e sp o n si b i l i t y o r l i a b i l i t y . R e s e a r ch C a p i t a l C o r p o r a t i o n , i t s d i r e ct o r s , o f f i c e r s a n d o t h e r e mp l o y e e s ma y , f r o m t i me t o
t i me , h a v e p o si t i o n s i n t h e s e cu r i t i e s me n t i o n e d h e r e i n . Co n t e n t s o f t h i s r e p o r t c a n n o t b e r e p r o d u c e d i n wh o l e o r i n p a r t wi t h o u t t h e e xp r e ss e d p e r mi s si o n o f R e se a r ch
C a p i t a l C o r p o r a t i o n . ( U . S . I n s t i t u t i o n a l Cl i e n t s — Re s e a r ch C a p i t a l U . S. A . I n c. ( a wh o l l y o wn e d s u b si d i a r y o f R e s e a r c h C a p i t a l Co r p o r a t i o n ) a cc e p t s r e s p o n si b i l i t y f o r
t h e c o n t e n t s o f t h i s r e p o r t s u b je c t t o t h e t e r ms & l i mi t a t i o n s s e t o u t a b o v e . F i r ms o r i n s t i t u t i o n s r e ce i vi n g t h i s r e p o r t s h o u l d e f f e ct t r a n s a ct i o n s i n s e c u r i t i e s d i sc u s se d
i n t h e r e p o r t t h r o u g h R e s e a r ch C a p i t a l U . S . A . I n c. , a B r o k e r - D e a l e r R e g i s t e r e d wi t h t h e U n i t e d S t a t e s S e cu r i t i e s a n d E xc h a n g e C o m mi s si o n ) .

Tor on to 4 16. 8 60. 76 00 M ontr eal 51 4. 39 9. 150 0 V anco u ver 60 4. 66 2. 180 0 C al gar y 40 3. 26 5. 740 0 R egi na 306. 566. 7550

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