Docstoc

Web 2.0 Weekly - June 29, 2010: "World Cup of Financings as ROW Participates"

Document Sample
Web 2.0 Weekly - June 29, 2010: "World Cup of Financings as ROW Participates" Powered By Docstoc
					                                                                                                                Web 2.0 Weekly
                “World Cup of Financings as ROW Participates”
                                                                                                                                          June 29, 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) – Worldwide Financings – World Cup Related?
     Alloy, a provider of news and commentary concerning New Media, was acquired by
     ZelnickMedia for $127 mm.
     Facebook’s implied valuation rose to $24 bn as Elevation Partners purchased 5 mm
     shares of the company for $120 mm in the secondary market.
     Danish Skype competitor, Vopium, received $16.5 mm in financing from Indian
     financier, Raghuvinder Kataria.
     Social networking software developer based in France, Pearltrees, raised $1.6 mm.
     PapayaMobile, mobile application software company based in China, raised $4 mm.
     Two Israeli mobile developers received funding this week, including Perfecto Mobile ($4
     mm) and Snaptu ($6 mm).
    Financial Results/Guidance/Partnerships/Product
     Multiplied Media (TSXV:MMC) announced the availability of local weather functionality
     for the iPhone version of its Poynt local search mobile application.




2                                                                            www.mackieresearch.com
    Public Company Data




3                         www.mackieresearch.com
    Aggregate Public Data

     Web 2.0 Public Companies   Total      Median    Max           Min
    # Companies                   101          -         -           -
    Market Cap (US$ mm)         76,167.1     73.3   30,613.7        1.2
    Revenue (US$ mm)            23,488.2     56.7    3,057.7        0.0
    1 Year revenue growth                   5.7%    8961.6%     -100.0%
    EBITDA as % of revenue         -        13.3%    63.1%       -99.5%
    Net cash (US$ mm)           9,046.6      2.3     1,836.0      -670.8
    TEV/Revenue                    -         1.9x     47.4x        0.0x
    TEV/EBITDA                     -         8.8x     49.3x        0.5x
    P/E                            -        16.8x     94.5x        0.0x
    Relative to 52 week high               -40.9%     -1.6%      -95.6%




     Source: CapitalIQ




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




                                                                                                                                                       28
                                                Social Networking




                                                                                                                             16
                                                            Media




                                                                                                             10

                                                                                                   8
                                                        Diversified




                                                                                               6
                                                        Marketing




                                                                                           5
                                                           Mobile




                         Source: CapitalIQ
                                                                                  3
                                                     Infrastructure




                                                                                  3
                                                      SMS/Voice




                                                                                  3
                                                       Enterprise




                                                                                  3
                                                       Advertising




                                                                              2
                                                    Internet Retail




                                                                              2
                                                     Virtual World
                                                                                                                                                                 By Sector




                                                                              2
                                                            Dating




                                                                              2
                                                            Music




                                                                          1
                                             Vertical Communities




                                                                          1
                                                     Collaboration




                                                                          1
                                                      Podcasting




                                                                          1
                                                         Learning




                                                                          1
                                                              Video




                                                                          1
                                                           Search




                                                                          1
                                                         Payment


                                                                          1
                                                Financial Services
                                                                                                                                                                              Public Company Distribution




                                                                0
                                                                          5
                                                                                      10
                                                                                                   15
                                                                                                                  20
                                                                                                                        25
                                                                                                                                  30
                                                                                                                                        35
                                                                                                                                                  40
                                                                                                                                                            45




                                              United States


                                                    Canada


                                                      China


                                                South Korea


                                                      Japan


                                                     Taiwan


                                                 Hong Kong


                                                   Germany


                                                     Poland


                                                   Australia


                                             United Kingdom
                                                                                                                                                                 By Country




                                                        Italy


                                                     Finland


                                                    Sweden


                                                       India


                                                     Russia


                                                   Malaysia


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

                            Flat
                            7%                                          Flat
                                                                        2%


                                     Rising
                                      25%                                      Rising
                                                                                23%
                                              Falling
                                               75%
         Falling
          68%



                     EV/EBITDA                               P/E

                     Flat                                    Flat
                     4%                                      0%
                                   Rising
                                    28%                                        Rising
                                                                                32%




                                                Falling
                                                 68%
           Falling
            68%
6                                                                      www.mackieresearch.com
 7
                         Source: CapitalIQ
                                                                                                                                                                                                                                                      Multiple (x)




                                                                                                                                                                                                                   0.0x
                                                                                                                                                                                                                          0.5x
                                                                                                                                                                                                                                 1.0x
                                                                                                                                                                                                                                        1.5x
                                                                                                                                                                                                                                               2.0x
                                                                                                                                                                                                                                                          2.5x
                                                                                                                                                                                                                                                                     3.0x
                                                                                                                                                                                                                                                                            3.5x
                                                                                                                                                                                                                                                                                   4.0x
                                                                                                                                                                                                                                                                                            4.5x
                                                                                                                                                                                                                                                                                                     5.0x




                                                                 # companies
                                                                                                                                                                                                       5/11/2009
                                                                                                                                                                                                       5/18/2009
                                                                                                                                                                                                       5/25/2009
                                                                                                                                                                                                        6/1/2009
                                                                                                                                                                                                        6/8/2009
                                                                                                                                                                                                       6/15/2009
                                                                                                                                                                                                       6/22/2009
                                                                                                                                                                                                       6/29/2009
                                                                                                                                                                                                        7/6/2009
                                                                                                                                                                                                       7/13/2009
                                                                                                                                                                                                       7/20/2009
                                                                                                                                                                                                       7/27/2009
                                                                                                                                                                                                        8/3/2009
                                                                                                                                                                                                       8/10/2009
                                                                                                                                                                                                       8/17/2009
                                                                                                                                                                                                       8/24/2009
                                                                                                                                                                                                                                                                                                            Median EV/Revenue




                                                                                                                                                                                                       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




                                             Median
                                                                                                                                                                                                      11/16/2009
                                                                                                                                                                                                      11/23/2009
                                                                                                                                                                                                      11/30/2009
                                                                                                                                                                                                       12/7/2009
                                                                                                                                                                                                      12/14/2009
                                                                                                                                                                                                      12/21/2009
                                                                                                                                                                                                      12/28/2009
                                                                                                                                                                                                        1/4/2010
                                                                                                                                                                                                       1/11/2010
                                                                                                                                                                                                       1/18/2010




                                             Long-term average
                                                                                                                                                                                                       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
                                                                                                                                                                                                                                                                                       average




                                                                                                                                                                                                       3/29/2010
                                                                                                                                                                                                        4/5/2010
                                                                                                                                                                                                                                                                                     well below LT




                                                                                                                                                                                                       4/12/2010
                                                                                                                                                                                                       4/19/2010
                                                                                                                                                                                                                                                                                   down slightly, still
                                                                                                                                                                                                                                                                                   Revenue multiples




                                                                                                                                                                                                       4/26/2010
                                                                                                                                                                                                        5/3/2010
                                                                                                                                                                                                       5/10/2010
                                                                                                                                                                                                       5/17/2010
                                                                                                                                                                                                       5/24/2010
                                                                                                                                                                                                       5/31/2010
                                                                                                                                                                                                        6/7/2010
                                                                                                                                                                                                       6/14/2010
                                                                                                                                                                                                       6/21/2010
                                                                                                                                                                                                       6/28/2010
                                                                           383839393940394042424445464646464749515151535456616161616366666666666670717073747069727272747476807880808181808282858384




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




                                                                 # companies
                                                                                                                                                                                                                                                                    0. 0x
                                                                                                                                                                                                                                                                            5. 0x
                                                                                                                                                                                                                                                                                    10. 0x
                                                                                                                                                                                                                                                                                                             15. 0x
                                                                                                                                                                                                                                                                                                                      20. 0x
                                                                                                                                                                                                                                                                                                                                                    25. 0x
                                                                                                                                                                                                                                                        5/11/2009
                                                                                                                                                                                                                                                        5/18/2009
                                                                                                                                                                                                                                                        5/25/2009
                                                                                                                                                                                                                                                         6/1/2009
                                                                                                                                                                                                                                                         6/8/2009
                                                                                                                                                                                                                                                        6/15/2009
                                                                                                                                                                                                                                                        6/22/2009
                                                                                                                                                                                                                                                        6/29/2009
                                                                                                                                                                                                                                                         7/6/2009
                                                                                                                                                                                                                                                        7/13/2009
                                                                                                                                                                                                                                                        7/20/2009
                                                                                                                                                                                                                                                        7/27/2009
                                                                                                                                                                                                                                                         8/3/2009
                                                                                                                                                                                                                                                        8/10/2009
                                                                                                                                                                                                                                                                                                                                                             Median EV/EBITDA




                                                                                                                                                                                                                                                        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




                                             Median
                                                                                                                                                                                                                                                       11/16/2009
                                                                                                                                                                                                                                                       11/23/2009
                                                                                                                                                                                                                                                       11/30/2009
                                                                                                                                                                                                                                                        12/7/2009
                                                                                                                                                                                                                                                       12/14/2009
                                                                                                                                                                                                                                                       12/21/2009
                                                                                                                                                                                                                                                       12/28/2009
                                                                                                                                                                                                                                                         1/4/2010
                                                                                                                                                                                                                                                        1/11/2010
                                                                                                                                                                                                                                                        1/18/2010
                                                                                                                                                                                                                                                        1/25/2010



                                             Long-term average
                                                                                                                                                                                                                                                         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
                                                                                                                                                                                                                                                                                                                               EV/EBITDA multiples down,
                                                                                                                                                                                                                                                                                                                               depressed below LT average




                                                                                                                                                                                                                                                        5/10/2010
                                                                                                                                                                                                                                                        5/17/2010
                                                                                                                                                                                                                                                        5/24/2010
                                                                                                                                                                                                                                                        5/31/2010
                                                                                                                                                                                                                                                         6/7/2010
                                                                                                                                                                                                                                                        6/14/2010
                                                                                                                                                                                                                                                        6/21/2010
                                                                                                                                                                                                                                                        6/28/2010
                                                                 20 20 22 22 23 23 22 22 24 24 23 23 24 24 26 26 26 26 25 25 26 28 30 30 34 33 36 36 38 38 39 40 39 41 41 39 39 39 43 43 41 42 43 43 42 43 43 45 46 45 50 50 50 53 52 52 51 51 49 51




www.mackieresearch.com
 9
                         Source: CapitalIQ
                                                                                                                                                                                                                                                                                                 Multiple (x )




                                                                                                                                                                               # companies
                                                                                                                                                                                                                                                                    0. 0x
                                                                                                                                                                                                                                                                            5. 0x
                                                                                                                                                                                                                                                                                    10. 0x
                                                                                                                                                                                                                                                                                             15. 0x
                                                                                                                                                                                                                                                                                                             20. 0x
                                                                                                                                                                                                                                                                                                                      25. 0x
                                                                                                                                                                                                                                                                                                                               30. 0x
                                                                                                                                                                                                                                                                                                                                                           35. 0x
                                                                                                                                                                                                                                                        5/11/2009
                                                                                                                                                                                                                                                        5/18/2009
                                                                                                                                                                                                                                                        5/25/2009
                                                                                                                                                                                                                                                                                                                                                                    Median P/E

                                                                                                                                                                                                                                                         6/1/2009
                                                                                                                                                                                                                                                         6/8/2009
                                                                                                                                                                                                                                                        6/15/2009
                                                                                                                                                                                                                                                        6/22/2009
                                                                                                                                                                                                                                                        6/29/2009
                                                                                                                                                                                                                                                         7/6/2009
                                                                                                                                                                                                                                                        7/13/2009
                                                                                                                                                                                                                                                        7/20/2009
                                                                                                                                                                                                                                                        7/27/2009
                                                                                                                                                                                                                                                         8/3/2009
                                                                                                                                                                                                                                                        8/10/2009
                                                                                                                                                                                                                                                        8/17/2009
                                                                                                                                                                                                                                                        8/24/2009
                                                                                                                                                                                                                                                        8/31/2009
                                                                                                                                                                                                                                                         9/7/2009
                                                                                                                                                                                                                                                        9/14/2009
                                                                                                                                                                                                                                                        9/21/2009
                                                                                                                                                                                                                                                        9/28/2009
                                                                                                                                                                                                                                                        10/5/2009
                                                                                                                                                                                                                                                       10/12/2009
                                                                                                                                                                                                                                                       10/19/2009
                                                                                                                                                                                                                                                       10/26/2009
                                                                                                                                                                                                                                                        11/2/2009
                                                                                                                                                                                                                                                        11/9/2009




                                             Median
                                                                                                                                                                                                                                                       11/16/2009
                                                                                                                                                                                                                                                       11/23/2009
                                                                                                                                                                                                                                                       11/30/2009
                                                                                                                                                                                                                                                        12/7/2009
                                                                                                                                                                                                                                                       12/14/2009
                                                                                                                                                                                                                                                       12/21/2009
                                                                                                                                                                                                                                                       12/28/2009
                                                                                                                                                                                                                                                         1/4/2010
                                                                                                                                                                                                                                                        1/11/2010
                                                                                                                                                                                                                                                        1/18/2010
                                                                                                                                                                                                                                                        1/25/2010



                                             Long-term average
                                                                                                                                                                                                                                                         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
                                                                                                                                                                                                                                                                                                                                         and below LT average




                                                                                                                                                                                                                                                        4/19/2010
                                                                                                                                                                                                                                                                                                                                        P/E multiples also down




                                                                                                                                                                                                                                                        4/26/2010
                                                                                                                                                                                                                                                         5/3/2010
                                                                                                                                                                                                                                                        5/10/2010
                                                                                                                                                                                                                                                        5/17/2010
                                                                                                                                                                                                                                                        5/24/2010
                                                                                                                                                                                                                                                        5/31/2010
                                                                                                                                                                                                                                                         6/7/2010
                                                                                                                                                                                                                                                        6/14/2010
                                                                                                                                                                                                                                                        6/21/2010
                                                                                                                                                                                                                                                        6/28/2010
                                                                 19 18 19 18 19 19 19 19 20 20 19 18 19 19 20 20 21 25 24 25 25 27 28 27 30 31 32 32 32 33 33 35 37 39 39 39 40 39 40 41 42 40 40 40 38 37 38 34 33 32 35 35 35 35 35 35 35 34 34 34




www.mackieresearch.com
 10
                                                                  -
                                                                                  5.0
                                                                                               10.0
                                                                                                            15.0
                                                                                                                   20.0
                                                                                                                          25.0
                                                                                                                                 30.0
                                                                                                                                        35.0
                                                                                                                                                      40.0




                         # Companies 1
                                                 Virtual World
                                                                                                                                               36.3




                         2
                                                 Infrastructure




                                                                                                            13.4




                         7
                                                    Diversified




                                                                                                      9.9




                         1
                                                     Learning




                                                                                               8.4




                         8
                                            Social Networking




                                                                                         5.3




                         2
                                                        Music




                                                                                        4.7




                         1
                                         Vertical Communities




                                                                                    4.3




                         1
                                                       Search



                                                                                    4.2
                                                      Gaming




                         21
                                                                                   3.7




                         4
                                                       Mobile
                                                                                  3.5




                         3
                                                  SMS/Voice
                                                                                  3.3




                         6
                                                    Marketing
                                                                                  3.2
                                                                                                                                                             Average EV/Revenue – by Sector




                         1
                                                  Podcasting
                                                                              2.8




                         3
                                                   Advertising
                                                                              2.7




                         1
                                                 Collaboration
                                                                             2.5




                         9


                                                        Media
                                                                            2.3




                         2




                                                Internet Retail
                                                                            2.0




                         1




                                                        Video
                                                                            1.9




                         3




                                                   Enterprise
                                                                            1.8




                         2




                                                       Dating
                                                                        1.4




                         1




                                            Financial Services
                                                                      0.4




www.mackieresearch.com
 Average EV/EBITDA – by Sector

          60.0



                    49.3
          50.0
                                         45.4


          40.0




          30.0




          20.0                                     18.2
                                                                15.6
                                                                          11.7     11.7               11.7          11.0
                                                                                                                                        9.7           9.3     8.9
          10.0




           -



                                                                                                      Diversified




                                                                                                                                        Advertising
                    Financial Services




                                                                                    Internet Retail
                                          Search




                                                   Enterprise




                                                                 Mobile




                                                                          Gaming




                                                                                                                    Social Networking




                                                                                                                                                      Media




                                                                                                                                                              Collaboration
      # Companies       1                  1         2            2       14           2                5               6                 1            6         1




11                                                                                                                                                            www.mackieresearch.com
 Average P/E – by Sector

          100.0
                         93.0

           90.0


           80.0


           70.0


           60.0                         56.3


           50.0

                                                       39.1
           40.0
                                                                      34.9

                                                                                   29.0
           30.0
                                                                                                25.5


           20.0
                                                                                                             15.0
                                                                                                                        13.6     13.2

           10.0


            -
                    Internet Retail   Enterprise   Collaboration   Diversified   Marketing     Social     Advertising   Media   Gaming
                                                                                             Networking

                          2               3             1              8            6           16            3          10      28
      # Companies




12                                                                                                                                 www.mackieresearch.com
 13
                                                                                 0.0
                                                                                                                                                                           5.0
                                                                                                                                                                                                                                     10.0
                                                                                                                                                                                                                                                        15.0
                                                                                                                                                                                                                                                                    20.0
                                                                                                                                                                                                                                                                           25.0
                                                                                                                                                                                                                                                                                            30.0
                                                                                                                                                                                                                                                                                                            35.0
                                                                                                                                                                                                                                                                                                                        40.0
                                                                                                                                                                                                                                                                                                                               45.0
                                                                                                                                                                                                                                                                                                                                           50.0
                                                    NeXplore C orporation




                                                                                                                                                                                                                                                                                                                                      47




                         Source: CapitalIQ
                                                                                                                                                                                                                                                                                                                   36
                                                            Worlds .com Inc.




                                                                                                                                                                                                                                                                                                            33
                                                                S oc ialG O P L C




                                                                                                                                                                                                                                                                                  26
                                                        S pectrumDNA, Inc.




                                                                                                                                                                                                                                                               16
                                                    T encent H oldings Ltd.




                                                                                                                                                                                                                                                        13
                                                                        P aid Inc.
                                                             G eoS entric O yj
                                                B ey ond C ommerce, Inc .




                                                                                                                                                                                                                                             11 11 11
                                                                      G ree, Inc.




                                                                                                                                                                                                                                            10
                                                       MO K O .mobi Limited




                                                                                                                                                                                                                                      9
                                           C hines e G amer International




                                                                                                                                                                                                                                 8
                                                Lingo Media C orporation
                                                F luid Mus ic C anada, Inc .
                                              DigitalP os t Interactive, Inc .




                                                                                                                                                                                                                         7 7 7
                                                                Dena C o. Ltd.
                                                         T rans G aming, Inc .




                                                                                                                                                                                                                               7 6
                                            Ac celeriz e New Media, Inc.




                                                                                                                                                                                                                     5
                                               HU G H E S T elematics , Inc .
                                                    WebMediaB rands Inc
                                          S K C ommunications C o. , L td.
                                                   C hangy ou.c om Limited




                                                                                       4 4 4 4
                                                                   T aleo C orp.
                                                                       Mix i, Inc.




                                                                                               4 3
                                     F rogs ter Interactiv e P ic tures AG
                                           K ings oft C orporation L imited
                                       Wiz z ard S oftware C orporation




                                                                                                   3 3 3
                                                               is eemedia Inc.
                                                           O pen T ex t C orp.
                                                                                                                                                                                                                                                                                                                                                  EV/Revenue Ranking




                                           NE O WIZ G ames C orporation
                                                                       eP ro Ltd.
                                          Modern T imes G roup Mtg AB
                                                                       XING AG
                                   G ungH o O nline E ntertainment, Inc .
                                                              S hutterfly, Inc.
                                                               S ohu.com Inc.
                                                                        V elti P lc
                                                           S core Media Inc.
                                                          U O MO Media, Inc
                                                      P NI Digital Media Inc .
                                                    NeuLion Incorporated                                 2 2 2 2 2 2 2 2 2 2 2 2 2
                                                             V alueC lic k , Inc.
                                                          Myriad G roup AG
                                                             H anbitS oft, Inc.
                                                                  Webz en Inc.
                                                       U nilav a C orporation
                               P latforma Mediowa P oint G roup S . A.
                                                     S park Network s , Inc.
                                                            Y D O nline C orp.
                                                                                                                                                                                                                                                                                   NeXplore has highest
                                                                                                                                                                                                                                                                                  revenue multiple at 47x




                             G amania Digital E ntertainment C o. , L td.
                                                                                                                                   2 2 2 2 2 2 1 1 1 1




                               H utchis on T elec ommunic ations Hong
                                                            infoG R O U P , Inc .
                                                    S NAP Interac tiv e, Inc.
                                               NetDragon WebS oft, Inc.
                                                              Y nk K orea Inc.
                                         O riented Media G roup B erhad
                                               C ornerWorld C orporation
                                       O AO R B C Information S ys tems
                                                         Internet G roup S A
                                                       AQ Interac tiv e, Inc.
                                       T he New Y ork T imes C ompany
                                                                    C DC C orp.
                                                       T heS treet. com, Inc.
                                      Northgate T echnologies Limited
                                                      IAC /InterAc tiv eC orp.
                                                 P oints International L td.
                                                              C yberplex Inc.
                                                         United O nline, Inc.
                                                                                                                                                       1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1




                                     U nis erv e C ommunic ations C orp.
                                                                      AO L, Inc.
                                                                   DADA S pA
                                                             G lu Mobile, Inc.
                                                              G igaMedia Ltd.
                                                       Ac toz S oft C o., Ltd.
                                                              T ree.C om, Inc.
                                               O penwav e S y s tems Inc.
                                                           G ameO n C o L td.
                                                         R ealNetwork s Inc.
                                        J umbuc k E ntertainment Limited
                                                                                                                                                                                           1 1 1 1 0 0 0 0 0 0 0




                                                                   As k net AG
                                                                                                                                                                                                                 0




                                                             Look S mart, L td.
www.mackieresearch.com
 14
                                                                                                       0. 0
                                                                                                                                                 10. 0
                                                                                                                                                                                                                                  20. 0
                                                                                                                                                                                                                                                                                     30. 0
                                                                                                                                                                                                                                                                                                    40. 0
                                                                                                                                                                                                                                                                                                                               50. 0
                                                                                                                                                                                                                                                                                                                                          60. 0




                         Source: CapitalIQ
                                                                                T ree. C om, Inc .




                                                                                                                                                                                                                                                                                                                                   49.3
                                                                S K C ommunic ations C o. , Ltd.




                                                                                                                                                                                                                                                                                                                         45. 4
                                                                               HanbitS oft, Inc .




                                                                                                                                                                                                                                                                                                     38. 0
                                                                        T enc ent Holdings Ltd.




                                                                                                                                                                                                                                                                                         30.7
                                                                                    T aleo C orp.




                                                                                                                                                                                                                                                                                             29.1
                                                            F rogs ter Interac tive P ic tures AG




                                                                                                                     21.3
                                                                                      G ree, Inc .
                                                                C hines e G amer International




                                                                                                                         19.018. 3
                                                                            My riad G roup AG




                                                                                                                                  17. 6
                                                                Modern T imes G roup Mtg AB
                                                                                        Mix i, Inc .
                                                                                S hutterfly , Inc .


                                                                                                                                       16. 315.915.3
                                                                                 Dena C o. Ltd.
                                                                          T heS treet. c om, Inc .
                                                                                                                                                                                                                                                                                                                                                  EV/EBITDA Ranking




                                                                          AQ Interac tive, Inc .
                                                                                                                                                    14.814. 614. 0

                                                                    O penwave S y s tems Inc .
                                                                             S c ore Media Inc .
                                                                                                                                                                  13. 612.8




                                                                              Y D O nline C orp.
                                                                                                                                                                           12.0




                                                                         IAC /InterAc tiveC orp.
                                                                                C y berplex Inc .
                                                                                                                                                                                                                                                                                                            at 49.3x




                                                          G ungHo O nline E ntertainment, Inc .
                                                                              O pen T ex t C orp.
                                                       P latforma Mediowa P oint G roup S .A.
                                                                                                                                                                               10.0 9.7 9.2 8.9 8. 8




                                                      G amania Digital E ntertainment C o., Ltd.
                                                                                    DADA S pA
                                                                                                                                                                                                                                                                                                    Tree.com leads the group




                                                                NE O WIZ G ames C orporation
                                                                                       XING AG
                                                                         P NI Digital Media Inc .
                                                                                        V elti P lc
                                                            Unis erve C ommunic ations C orp.
                                                                                                                                                                                                     8. 6 8. 4 8.3 8.3 8.1 7.9 7. 6




                                                                    N etDragon WebS oft, Inc .
                                                                K ings oft C orporation Limited
                                                                                     C DC C orp.
                                                                        S park Network s , Inc .
                                                                              infoG R O UP , Inc .
                                                                               V alueC lic k , Inc .
                                                                                                                                                                                                                                    7. 6 7.5 7.4 7.2 6.7 6. 7




                                                                       C hangy ou. c om Limited
                            Hutc his on T elec ommunic ations Hong K ong Holdings Ltd.
                                                             T he New Y ork T imes C ompany
                                                                                                                                                                                                                                                              6. 4 5.6 5.4




                                                                                S ohu.c om Inc .
                                                                            United O nline, Inc .
                                                                                                                                                                                                                                                                           4.8 3.7




                                                                          Ac toz S oft C o., Ltd.
                                                                                      AO L, Inc .
                                                                                                                2. 5 2. 2




                                                                              G ameO n C o Ltd.
                                                                                                              1. 1




www.mackieresearch.com
                         Excluding EV/EBITDA > 100x
 15
                         Source: CapitalIQ
                                                                                                     0.0
                                                                                                                 10.0
                                                                                                                                            20.0
                                                                                                                                                                     30.0
                                                                                                                                                                                              40.0
                                                                                                                                                                                                                  50.0
                                                                                                                                                                                                                             60.0
                                                                                                                                                                                                                                           70.0
                                                                                                                                                                                                                                                       80.0
                                                                                                                                                                                                                                                              90.0
                                                                                                                                                                                                                                                                         100.0
                                                                                      eP ro Ltd.

                                                                              S hutterfly , Inc.                                                                                                                                                                     94.5 93.0

                                                                    P oints International Ltd.

                                                                                    C DC C orp.




                                                                                                                                                                                                                             57.2 55. 4
                                                                                                                                                                                                                                                                                 P/E Ranking


                                                                                      Mix i, Inc .




                                                                                                                                                                                                                     48. 8
                                                                             infoG R O U P , Inc .


                                                                                                                                                                                                                   46. 9
                                                                      T enc ent H oldings Ltd.

                                                                            O pen T ex t C orp.                                                                                                           40. 9
                                                                                                                                                                                                    39. 1
                                                                                     G ree, Inc .
                                                                                                                                                                                                  37. 0


                                                                                Dena C o. Ltd.

                                                                  NetDragon W ebS oft, Inc .

                                                    G amania Digita l E ntertainment C o., Ltd.
                                                                                                                                                                                 32.5 32.4 31.2




                                                               C hines e G amer Internationa l

                                                                                       V elti P lc

                                                          F rogs ter Intera ctive P ictures AG
                                                                                                                                                                24.7 24.6 24.3




                                                              NE O W IZ G ames C orporation
                                                                                                                                                                                                                                    P/E at 94.5x




                                                                                                                                                         19.5




                                  Hutc his on T elec ommunications H ong K ong H oldings Ltd.
                                                                                                                                                                                                                                ePro has the highest




                                                           T he New Y ork T imes C ompany

                                                                              V alueC lic k , Inc.
                                                                                                                                          17.3 16.3 15.5




                                                                               C y berplex Inc .
                                                                                                                                                         15.0




                                                                               S ohu.com Inc .

                                                                                   DADA S pA

                                                               K ings oft C orpora tion L imited
                                                                                                                        13.2 13.1 12.9




                                                                                     AO L , Inc.

                                                                            G ameO n C o Ltd.
                                                                                                                                       11.1 9.5




                                                                     C hangy ou. com L imited
                                                                                                                        9.4




                                                                          U nited O nline, Inc .
                                                                                                                    8.8




                                                           Unis erve C ommunic ations C orp.
                                                                                                                 6.0




                                                            J umbuc k E ntertainment Limited
                                                                                                            3.3




                                                                           N etea s e.com Inc .
                                                                                                           2.2




                                                               G iant Intera ctive G roup, Inc .
                                                                                                           2.0




                                                     S ha nda Interac tive E ntertainment Ltd.
                                                                                                           1.9




www.mackieresearch.com
 16
                         Source: CapitalIQ
                                                                                                                                                                                                                                                       (U S $m)




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


                                                                                                                                                                                                    7/6/2009
                                                                                                                                                                                                   7/13/2009
                                                                                                                                                                                                   7/20/2009
                                                                                                                                                                                                   7/27/2009
                                                                                                                                                                                                    8/3/2009
                                                                                                                                                                                                   8/10/2009
                                                                                                                                                                                                   8/17/2009
                                                                                                                                                                                                   8/24/2009
                                                                                                                                                                                                   8/31/2009
                                                                                                                                                                                                    9/7/2009
                                                                                                                                                                                                   9/14/2009
                                                                                                                                                                                                   9/21/2009
                                                                                                                                                                                                   9/28/2009
                                                                                                                                                                                                   10/5/2009
                                                                                                                                                                                                  10/12/2009
                                                                                                                                                                                                  10/19/2009
                                                                                                                                                                                                  10/26/2009
                                                                                                                                                                                                   11/2/2009
                                                                                                                                                                                                   11/9/2009
                                                                                                                                                                                                  11/16/2009
                                                                                                                                                                                                  11/23/2009
                                                                                                                                                                                                  11/30/2009
                                                                                                                                                                                                                                                                                                                                             Total Market Capitalization




                                                                                                                                                                                                   12/7/2009




                                                                                                               100
                                                                                                                                                                                                  12/14/2009
                                                                                                                                                                                                  12/21/2009




                                             98 98 98 98 98 98 98 98 98 97 98 98 98 98 99 99 99 99 99 99 99 100 100100
                                                                                                                                                                                                  12/28/2009
                                                                                                                                                                                                    1/4/2010




                                                                                                                      100100
                                                                                                                                                                                                   1/11/2010
                                                                                                                                                                                                   1/18/2010
                                                                                                                                                                                                   1/25/2010




                                                                                                                                  100
                                                                                                                                                                                                    2/1/2010
                                                                                                                                                                                                    2/8/2010




                                                                                                                            100100 100100
                                                                                                                                                                                                   2/15/2010
                                                                                                                                                                                                   2/22/2010

                                                                                                                                         100101
                                                                                                                                                                                                    3/1/2010
                                                                                                                                                                                                    3/8/2010
                                                                                                                                                                                                   3/15/2010
                                                                                                                                                     101
                                                                                                                                                                                                                                                                                                      Total market cap decreases to $76 bn




                                                                                                                                                                                                   3/22/2010
                                                                                                                                                                                                   3/29/2010
                                                                                                                                               101101 101101




                                                                                                                                                                                                    4/5/2010
                                                                                                                                                                                                   4/12/2010
                                                                                                                                                                                                   4/19/2010
                                                                                                                                                                  101




                                                                                                                                                                                                   4/26/2010
                                                                                                                                                                                                    5/3/2010
                                                                                                                                                            101101 101101




                                                                                                                                                                                                   5/10/2010
                                                                                                                                                                                                   5/17/2010
                                                                                                                                                                         101101




                                                                                                                                                                                                   5/24/2010
                                                                                                                                                                                                   5/31/2010
                                                                                                                                                                                                    6/7/2010
                                                                                                                                                                                     101




                                                                                                                                                                                                   6/14/2010
                                                                                                                                                                                                   6/21/2010
                                                                                                                                                                               101101 101101




                                                                                                                                                                                                   6/28/2010
                                                                                                                                                                                            101




www.mackieresearch.com
 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




                         8
                                                    Diversified

                                                      Gaming




                         28
                                                        Media




                         10
                                            Social Networking




                         16
                         1
                                                 Collaboration




                         6
                                                    Marketing




                         3
                                                   Enterprise




                         2
                                                Internet Retail




                         1
                                                       Search




                         5
                                                       Mobile
                                                                                                                                                                                  Total Market Cap – by Sector




                         2
                                                        Music




                         3
                                                  SMS/Voice




                         3
                                                   Advertising




                         2
                                                       Dating


                         1
                                            Financial Services
                         1
                                                        Video
                         2



                                                 Virtual World
                         1




                                      Vertical Communities
                                                                                                                  Eight Diversified companies
                                                                                                                 totaling $35 bn in market cap




                         1




                                                     Payment
                         3




                                                 Infrastructure
                         1




                                                  Podcasting
                         1




                                                     Learning
www.mackieresearch.com
 18
                                                                                                   0
                                                                                                        1,000
                                                                                                                2,000
                                                                                                                             3,000
                                                                                                                                                      4,000
                                                                                                                                                              5,000
                                                                                                                                                                      6,000
                                                                           Tencent Holdings Ltd.
                                                                                     Dena Co. Ltd.
                                                                                 Netease.com Inc.
                                                                                         Gree, Inc.




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




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




                                                                    Multiplied Media Corporation
                                                                                   Socialwise, Inc.
                                                                                   LookSmart, Ltd.
                                                                                   GeoSentric Oyj
                                                                     Accelerize New Media, Inc.
                                                                                    Ynk Korea Inc.
                                                                                                                        Tencent’s $31 bn market cap




                                                                                        Asknet AG
                                                                           NeXplore Corporation
                                                                                         VOIS, Inc.
                                                                 Northgate Technologies Limited
                                                                 Wizzard Software Corporation
                                                                        Lingo Media Corporation
                                                                       Dolphin Digital Media, Inc.
                                                                  Jumbuck Entertainment Limited
                                                                                    iseemedia Inc.
                                                                              Unilava Corporation
                                                                                Internet Group SA
                                                                                     SocialGO PLC
                                                                 Kent International Holdings Inc.
                                                                      DigitalPost Interactive, Inc.
                                                                              MOKO.mobi Limited
                                                                                  Worlds.com Inc.
                                                                           SNAP Interactive, Inc.
                                                                        Beyond Commerce, Inc.
                                                                            YouBlast Global, Inc.
                                                                        En2Go International, Inc.
                                                                               SpectrumDNA, Inc.
                                                                                Kiwibox.Com, Inc.
                                                                                  IAS Energy, Inc.
                                                                Uniserve Communications Corp.
                                                                  Oriented Media Group Berhad
                                                                       CornerWorld Corporation
                                                                              BroadWebAsia Inc.
                                                                                 UOMO Media, Inc
                                                                                 Mobile Data Corp.
www.mackieresearch.com
 Price Performance – 1 Week
 • Negative price momentum, with 66% of
   stocks falling over the past week.                Price Momentum

 • The market has oscillated between up
   and down weeks fairly consistently in
   the last two months.
                                                                        Rising
                                                                         25%




                                           Falling
                                                                           Flat
                                            66%
                                                                           9%




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

  20.0%
              14.6% 13.7%                                                                        Video sector shows
  15.0%                                                                                         highest weekly returns
  10.0%                                7.4%
                                                      5.9%
       5.0%                                                             3.3%
                                                                                      1.5% 0.7%
                                                                                                0.0%
       0.0%
                                                                                                                          -0.4% -0.6%
                                                                                                                                                             -2.0% -2.4%
   -5.0%                                                                                                                                                                         -3.1% -3.2%
                                                                                                                                                                                                         -4.5% -4.7% -4.9%
                                                                                                                                                                                                                                 -6.0%
  -10.0%                                                                                                                                                                                                                                  -8.3% -8.8%
                                                                                                                                                                                                                                                              -10.5%
  -15.0%                                                                                                                                                                                                                                                            -13.3%
                                                                                                                           Internet Retail
                                                       Infrastructure
                       Virtual World




                                                                                                                                             Collaboration




                                                                                                                                                                                                                                                              Networking
                                                                                                                                                                                                                              Financial
                                                                                                                                                              Payment




                                                                                                                                                                                                                           Communities
                                        Advertising




                                                                                                                                                                                                                                           Learning
                                                                                                                                                                                                                   Music
                                                                         Enterprise

                                                                                       Search

                                                                                                 Marketing

                                                                                                             Podcasting




                                                                                                                                                                        Gaming

                                                                                                                                                                                  Mobile

                                                                                                                                                                                           Diversified

                                                                                                                                                                                                          Dating




                                                                                                                                                                                                                              Services




                                                                                                                                                                                                                                                      Media



                                                                                                                                                                                                                                                                           SMS/Voice
               Video




                                                                                                                                                                                                                                                                Social
                                                                                                                                                                                                                             Vertical
Source: CapitalIQ

  20                                                                                                                                                                                                                                         www.mackieresearch.com
 21
                                                               -80.0%
                                                                        -60.0%
                                                                                 -40.0%
                                                                                          -20.0%
                                                                                                   0.0%
                                                                                                          20.0%
                                                                                                                  40.0%
                                                                                                                          60.0%
                                                      YBLT
                                                     BWBA
                                                    IASC.A
                                                     BYOC
                                                     UNLA




                         Source: CapitalIQ
                                                       VOIS
                                                TSXV:TNG
                                                      2497
                                                     DPDM
                                                        MKB
                                                TSXV:MMC
                                               SEHK:8086
                                                    PWRD
                                                   OMEDIA
                                                     NXPC
                                                      KIWB
                                                    UOMO
                                                 WSE:IGR
                                                  ASX:JMB
                                                     HUTC
                                                  AIM:SGO
                                                  TSXV:LM
                                                 TSE:2432
                                                    DGTW
                                                     CYOU
                                                     SOHU
                                                    RNWK
                                                     GRVY
                                                    WEBM
                                                  A052770
                                             KOSE:A069080
                                                        STVI
                                                        VEL
                                                        AOL
                                               GTSM:3083
                                                     TREE
                                                WSE:PGM
                                                     NTES
                                                      VCLK
                                                      3888
                                                      3812
                                                 XTRA:A5A
                                                      RBCI
                                                         IEE
                                                      6180
                                                        NYT
                                                        LOV
                                                     UNTD
                                                                                                                                  Price Performance – 1 Week




                                                          GA
                                                     LOOK
                                                  TSXV:PN
                                                    MTG B
                                                 TSE:3632
                                                        IACI
                                                     DGLP
                                                     SCLW
                                                      GIGM
                                                   TSX:CX
                                                         700
                                                  A023770
                                                     SNDA
                                                     MYRN
                                                  A052790
                                                  A095660
                                                      OTEX
                                                     OPWV
                                                       IUSA
                                                    GEO1V
                                                      MBYL
                                                  TSX:PTS
                                                    CWRL
                                                       ETGI
                                                       WZE
                                                SEHK:215
                                                   DB:M0C
                                                    O1BC
                                                  TSX:FMN
                                                     TSCM
                                                  A066270
                                                      TLEO
                                                      SFLY
                                                         777
                                                     GLUU
                                                     NCTY
                                                      2121
                                                    CM:DA
                                                 TSX:SCR
                                                      3838
                                                      PAYD
                                                  A047080
                                                        FRG
                                                    CHIN.A
                                                     KNTH
                                                TSXV:USS
                                                      3765
                                                   590057
                                                     QPSA
                                                  TSX:NLN
                                                      SPXA
                                                      ACLZ
                                                    WDDD
www.mackieresearch.com
 22
                                                                                                                                                      0%
                                                                                                                                                      5%
                                                                                                                                                     10%
                                                                                                                                                     15%
                                                                                                                                                     20%
                                                                                                                                                     25%
                                                                                                                                                     30%
                                                                                                                                                     35%
                                                                                                                                                     40%
                                                                                                                                                     45%
                                                                                                                                                     50%




                                                                  0%
                                                                       500%
                                                                              1000%
                                                                                      1500%
                                                                                              2000%
                                                                                                      2500%
                                                                                                              3000%
                                                                                                                                   Uniserve
                                                    OAO RBC                                                                     Communications
                                                   Information                                                                      Corp.
                                                    Systems

                                                                                                                                      SNAP
                                                     ePro Ltd.                                                                   Interactive, Inc.




                         Source: CapitalIQ
                                                 Beyond                                                                                Gree, Inc.
                                              Commerce, Inc.


                                               AQ Interactive,                                                                   HanbitSoft, Inc.
                                                    Inc.

                                                                                                                                     SK
                                             Score Media Inc.
                                                                                                                                Communications
                                                                                                                                   Co., Ltd.




                                                                                                                      6 Month
                                                                                                                                                             1 Month




                                                Uniserve                                                                         Actoz Soft Co.,
                                             Communications                                                                           Ltd.
                                                 Corp.


                                                     Velti Plc                                                                    Cyberplex Inc.


                                                                                                                                 AQ Interactive,
                                              Quepasa Corp.                                                                           Inc.


                                                   SNAP                                                                              NeuLion
                                              Interactive, Inc.                                                                    Incorporated

                                                                                                                                      Frogster
                                                   Points
                                                                                                                                     Interactive
                                             International Ltd.
                                                                                                                                    Pictures AG
                                                                                                                                                                       Price Performance (Top 10)



                                                                                                                                                       0%
                                                                                                                                                      20%
                                                                                                                                                      40%
                                                                                                                                                      60%
                                                                                                                                                      80%
                                                                                                                                                     100%
                                                                                                                                                     120%
                                                                                                                                                     140%
                                                                                                                                                     160%
                                                                                                                                                     180%




                                                                     0%
                                                                   500%
                                                                  1000%
                                                                  1500%
                                                                  2000%
                                                                  2500%
                                                                  3000%
                                                                  3500%
                                                                  4000%
                                                                  4500%




                                                   OAO RBC
                                                                                                                                   Beyond
                                                  Information
                                                                                                                                Commerce, Inc.
                                                    Systems


                                                    ePro Ltd.                                                                          ePro Ltd.


                                                                                                                                     SK
                                             Quepasa Corp.                                                                      Communications
                                                                                                                                   Co., Ltd.

                                                                                                                                      Points
                                                      Velti Plc
                                                                                                                                International Ltd.

                                                                                                                                   Uniserve
                                                 Fluid Music
                                                                                                                                Communications
                                                Canada, Inc.
                                                                                                                                    Corp.
                                                                                                                      1 Year
                                                                                                                                                            3 Month




                                               Dena Co. Ltd.                                                                     Glu Mobile, Inc.



                                              AQ Interactive,
                                                                                                                                        Velti Plc
                                                   Inc.

                                                  SK
                                             Communications                                                                            Gree, Inc.
                                                Co., Ltd.

                                                                                                                                  AQ Interactive,
                                                   Gree, Inc.
                                                                                                                                       Inc.


                                              TransGaming,
                                                                                                                                LookSmart, Ltd.
                                                   Inc.
www.mackieresearch.com
 23
                                                                                                                                                                  -70.0%
                                                                                                                                                                                    -60.0%
                                                                                                                                                                                                 -50.0%
                                                                                                                                                                                                                   -40.0%
                                                                                                                                                                                                                                -30.0%
                                                                                                                                                                                                                                                  -20.0%
                                                                                                                                                                                                                                                               -10.0%
                                                                                                                                                                                                                                                                               0.0%




                                                                -100.0%
                                                                 -90.0%
                                                                 -80.0%
                                                                 -70.0%
                                                                 -60.0%
                                                                 -50.0%
                                                                                                        -40.0%
                                                                                                        -30.0%
                                                                                                        -20.0%
                                                                                                        -10.0%
                                                                                                          0.0%
                                                                                                                                                  MOKO.mobi
                                             SpectrumDNA,
                                                                                                                                                   Limited
                                                  Inc.

                                                                                                                                                   Multiplied
                                                                                                                                                    Media
                                               Lingo Media




                         Source: CapitalIQ
                                                                                                                                                  Corporation
                                               Corporation

                                                                                                                                                Dolphin Digital
                                                                                                                                                 Media, Inc.
                                                 VOIS, Inc.


                                                                                                                                               Ngi Group Inc.
                                                 YouBlast
                                                Global, Inc.
                                                                                                                                               TransGaming,
                                                                                                                                                   Inc.
                                                MOKO.mobi
                                                 Limited
                                                                                                                                                                                                                                                                                            1 Week




                                                                                                                                     6 Month
                                                                                                                                                   VOIS, Inc.
                                                  En2Go
                                               International,
                                                    Inc.                                                                                           Unilava
                                                                                                                                                  Corporation

                                              UOMO Media,
                                                 Inc                                                                                               Beyond
                                                                                                                                                  Commerce,
                                                                                                                                                     Inc.
                                               CornerWorld
                                               Corporation                                                                                       IAS Energy,
                                                                                                                                                     Inc.

                                                 Unilava
                                                                                                                                               BroadWebAsia
                                                Corporation
                                                                                                                                                    Inc.


                                             BroadWebAsia                                                                                          YouBlast
                                                  Inc.                                                                                            Global, Inc.
                                                                                                                                                                           -90.0%
                                                                                                                                                                                       -80.0%
                                                                                                                                                                                                -70.0%
                                                                                                                                                                                                          -60.0%
                                                                                                                                                                                                                      -50.0%
                                                                                                                                                                                                                               -40.0%
                                                                                                                                                                                                                                         -30.0%
                                                                                                                                                                                                                                                     -20.0%
                                                                                                                                                                                                                                                              -10.0%
                                                                                                                                                                                                                                                                        0.0%
                                                                                                                                                                                                                                                                                                     Price Performance (Bottom 10)




                                                                  -120.0%
                                                                            -100.0%
                                                                                      -80.0%
                                                                                               -60.0%
                                                                                                        -40.0%
                                                                                                                 -20.0%
                                                                                                                          0.0%




                                                                                                                                                    Lingo Media
                                                   Moggle, Inc                                                                                      Corporation


                                                                                                                                                      Beyond
                                                  Lingo Media                                                                                        Commerce,
                                                  Corporation                                                                                           Inc.


                                                Dolphin Digital                                                                                       VOIS, Inc.
                                                 Media, Inc.

                                                                                                                                                  Dolphin Digital
                                               SpectrumDNA,
                                                                                                                                                   Media, Inc.
                                                    Inc.


                                                  IAS Energy,                                                                                    GeoSentric Oyj
                                                      Inc.
                                                                                                                                 1 Year
                                                                                                                                                                                                                                                                                      1 Month




                                                    Beyond                                                                                       BroadWebAsia
                                                   Commerce,                                                                                          Inc.
                                                      Inc.

                                                 CornerWorld                                                                                         Mobile Data
                                                 Corporation                                                                                           Corp.



                                                UOMO Media,                                                                                        CornerWorld
                                                   Inc                                                                                             Corporation


                                                     En2Go
                                                                                                                                                      YouBlast
                                                 International,
                                                                                                                                                     Global, Inc.
                                                      Inc.

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




24                                          www.mackieresearch.com
 Financing Activity – Current Month
         C om pany Nam e           C ountr y     S e ctor                        A cquis ition   Ange l/S e e d   De bt financing   S e r ie s A   S e rie s B   S e rie s C   S e rie s D   S e rie s E   NA      Gr and Total
         Zynga                     US A                              Gaming                                                                                                       147. 0                               147.0
         Alloy                     US A                                 Media       126.5                                                                                                                             126.5
         Invite Me dia             US A                            A nalytics        70. 0                                                                                                                            70. 0
         Fe tchBack                US A                         A dvertis ing        40. 0                                                                                                                            40. 0
         Playdom                   US A                               Gaming                                                                          33.0                                                            33. 0
         Haute L ook               US A                      Internet R etail                                                                                       31.0                                              31. 0
         C halle nge Gam e s       US A                               Gaming         20. 5                                                                                                                            20. 5
         Mytopia                   Is rael                            Gaming         18. 0                                                                                                                            18. 0
         V opium                   Denmark                       S MS /V oice                                                                                                                              16. 5      16. 5
         Re putationDe fe nde r    US A              Comment/R eputation                                                                                            15.0                                              15. 0
         Br and.ne t               US A                         A dvertis ing                                                                                       14.0                                              14. 0
         Mar in S oftw are         US A                         A dvertis ing                                                                                                     11.2                                11. 2
         Ge tJ ar Ne tw ork s      US A                                Mobile                                                                         11.0                                                            11. 0
         Book Re nte r             US A                 S oc ial Commerce                                                                             10.0                                                            10. 0
         Appte r a                 US A                           Mobile A d                                                                                                                   10. 0                  10. 0
         Rock You                  US A                               W idget                                                                                                     10.0                                10. 0
         Extr e m e Re ac h        US A                         A dvertis ing                                                                                                                              9.0         9. 0
         Mac hinim a.com           US A                       V irtual W orld                                                                                       9. 0                                               9. 0
         Safe tyWe b               US A                  S ocial Netw orks                                                              8. 0                                                                           8. 0
         Kudzu Inte r active       US A                Fina ncial S ervices                                                                           7. 0                                                             7. 0
         Tr ans pe r a             US A                           Mobile A d                                                                                        7. 0                                               7. 0
         C urs e                   US A                  S ocial Netw orks                                                                                                                                 6.0         6. 0
         Snaptu                    Is rael                             Mobile                                                                         6. 0                                                             6. 0
         L ijit Ne tw or k s       US A                               S ea rch                                                                                                    6. 0                                 6. 0
         Adis n                    US A                         A dvertis ing         5. 5                                                                                                                             5. 5
         C onnotate                US A                            A nalytics                                                           5. 3                                                                           5. 3
         Re s onate Ne tw or k s   US A                         A dvertis ing                                                           5. 0                                                                           5. 0
         Be bo                     UK                    S ocial Netw orks            5. 0                                                                                                                             5. 0
         Me tacafe                 US A                                 V ideo                                                                                                                             5.0         5. 0
         Be ac hMint               US A                 S oc ial Commerce                                                               5. 0                                                                           5. 0
         BigDoor Me dia            US A                                 Media                                                           5. 0                                                                           5. 0
         Spons or Pay              G ermany                  V irtual Goods                                                             4. 6                                                                           4. 6
         L ucidMe dia              US A                         A dvertis ing                                                                                                     4. 5                                 4. 5
         Tr iggit                  US A                         A dvertis ing                                                                                                                              4.2         4. 2
         Pe r fe cto Mobile        Is rael                             Mobile                                                                                                                              4.0         4. 0
         PapayaMobile              China                               Mobile                                                                                                                              4.0         4. 0
         Magne tic                 US A                         A dvertis ing                                                           4. 0                                                                           4. 0
         Gogobot                   US A                                Tra vel                                                          4. 0                                                                           4. 0
         Giiv                      US A                 S oc ial Commerce                                                               3. 4                                                                           3. 4
         Nuxe o                    F ranc e                       Enterpris e                                                           3. 3                                                                           3. 3
         Tr e fis                  US A                            A nalytics                                                           3. 2                                                                           3. 2
         Attr ibutor               US A                            A nalytics                                                                                                     3. 2                                 3. 2
         V iaC L IX                US A                                 V ideo                                                                                                                             3.1         3. 1
         He yz ap                  US A                               Gaming                                                                                                                               3.0         3. 0
         Me tam ar k e ts          US A                         A dvertis ing                         2. 5                                                                                                             2. 5
         Snaptic                   US A                                Mobile                         2. 3                                                                                                             2. 3
         WOWIO                     US A                      Internet R etail                                                           1. 7                                                                           1. 7
         uC ir r us                US A                      Infra s tructure                                                           1. 7                                                                           1. 7
         HitFix                    US A                                 Media                                                                         1. 6                                                             1. 6
         Pe ar ltr e e s           F ranc e              S ocial Netw orks                                                                            1. 6                                                             1. 6
         C e llixis                US A              Comment/R eputation                                                                1. 5                                                                           1. 5
         Dilithium Ne tw or k s    US A                                 V ideo                                          1.5                                                                                            1. 5
         Sc hoology                US A                   Online Learning                                                               1. 3                                                                           1. 3
         Thum btack                US A           Crow ds ourced Content                              1. 2                                                                                                             1. 2
         SoGe o                    Netherlands       Loc ation-ba s ed S NS                                                             0. 8                                                                           0. 8
         Rum m ble                 UK                Loc ation-ba s ed S NS                                                                                                                                0.8         0. 8
         Te am S nap               US A             V ertical Communities                                                              0. 7                                                                            0. 7
                                                                                    285.5             6.0               1.5            58.4           70.2          76.0         181.9         10.0        55.6       745.1



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



                                                                       Internet Retail
                    Internet Retail                                          3%
          Analytics       4%               Other                  Analytics
            11%                            24%                      9%




                                                    Advertising
 Advertising
                                                      17%
   13%



                                                                                                           Other
                                                                                                           57%
                                                          Media
                                                           5%

               Media                       Gaming                 Gaming
               18%                          30%                    9%




26                                                                                                 www.mackieresearch.com
 Financing Activity

                           June financing turning out to be one of
              1000.0                                                                                                                                 16.0
                             the strongest aggregate deal value
               900.0
                                     months in the year                                                                 13.9
                                                                                                                                                     14.0

               800.0                                                                12.2
                                                                                                                                                     12.0
               700.0                                                                                  10.3
                                                                            9.6                                                                      10.0
               600.0                                      8.8                                                                              9.0
     (US$m)




                                                                                                                                                             (US$m)
                                                                                              7.8
               500.0                                                                                                                                 8.0
                                                 6.3                6.4
               400.0                5.4                                                                         5.7               5.5                6.0
                         4.5
               300.0
                                                                                                                                                     4.0
               200.0

                                                                                                                                                     2.0
               100.0

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


      *Dec-09 includes $180m Zynga investment
      Apr-10 includes $300m DST investment
                                                            Total          Average per Deal           LTM Total Average**
                                                                                                                                   **Excludes Dec-09, Apr-
      Jun-10 includes $147m Zynga investment                                                                                       10



27                                                                                                                                                  www.mackieresearch.com
 28
                                                                                            (US$m)




                                                                      0.0
                                                                            100.0
                                                                                    200.0
                                                                                              300.0
                                                                                                      400.0
                                                                                                              500.0
                                                                                                                         600.0




                                 # companies
                                                          Gaming

                                                            Media




                         15 11
                         1
                                                       Diversified

                                                            Mobile




                         13
                         5
                                                     Collaboration




                         9
                                                 Social Commerce

                                                       Advertising




                         20
                                                    Crowdsourced




                         3
                                                       Content
                                                        Analytics




                         14
                         9
                                                             Video




                         5
                                                    Internet Retail

                                                  Social Networks




                         11
                         5
                                                Financial Services




                         5
                                                     Virtual World




                         5
                                                        Enterprise




                         2
                                                           Widget




                         9
                                        Vertical Communities




                         3
                                                        Mobile Ad
                                                                                                                      quarter




                         5
                                                     Infrastructure




                         2
                                                                                                                  biggest area of




                                        Comment/Reputation
                                                                                                                  Advertising the

                                                                                                                interest in the past




                         1
                                                       SMS/Voice
                         1
                                                   Mobile Payment
                         2

                                                     Virtual Goods
                         5




                                                           Search
                         2




                                                   Online Learning
                         2




                                                            Music
                         1




                                                      Aggregation
                         4




                                                            Travel
                         1




                                                        Classified
                         1




                                                        Publishing
                         4




                                               Location-based SNS
                                                                                                                                       Capital Market Activity Ranking – by Sector, last three months




                         1




                                                        Microblog
                         1




                                                      Micromedia
                         1




                                                              Blog
www.mackieresearch.com
 29
                                                                                                                                                     (US$ mm)




                                                                                                                      0.0
                                                                                                                            100.0
                                                                                                                                    200.0
                                                                                                                                                 300.0
                                                                                                                                                                     400.0
                                                                                                                                                                                  500.0
                                                                                                                                                                                           600.0
                                                                                                                                                                                                   700.0
                                                                                                            Jan-08

                                                                                                            Feb-08

                                                                                                            Mar-08

                                                                                                            Apr-08

                                                                                                            May-08

                                                                                                            Jun-08

                                                                                                             Jul-08

                                                                                                            Aug-08

                                                                                                            Sep-08

                                                                                                            Oct-08

                                                                                                            Nov-08




                                                                                          Social Networks
                                                                                                            Dec-08

                                                                                                            Jan-09

                                                                                                            Feb-09




                                                                                          Gaming
                                                                                                            Mar-09

                                                                                                            Apr-09
                                                                                                                                                                                                           $ Raised



                                                                                                            May-09




                                                                                          Advertising
                                                                                                            Jun-09

                                                                                                             Jul-09




                                                                                          Video
                                                                                                            Aug-09

                                                                                                            Sep-09

                                                                                                            Oct-09




                                                                                          Virtual World
                                                                                                            Nov-09

                                                                                                            Dec-09

                                                                                                            Jan-10

                                                                                                            Feb-10

                                                                                                            Mar-10

                                                                                                            Apr-10

                                                                                                            May-10

                                                                                                            Jun-10
                                                                                                                                                                                                                      Top 5 Sectors (2008-present)




                                                                                                                                                         (# Deals)
                                                                                                                      0
                                                                                                                                5
                                                                                                                                            10
                                                                                                                                                            15
                                                                                                                                                                             20
                                                                                                                                                                                          25
                                                                                                                                                                                                   30




                                                                                                            Jan-08

                                                                                                            Feb-08

                                                                                                            Mar-08

                                                                                                            Apr-08

                                                                                                            May-08

                                                                                                            Jun-08

                                                                                                             Jul-08

                                                                                                            Aug-08

                                                                                                            Sep-08

                                                                                                            Oct-08

                                                                                                            Nov-08

                                                                                                            Dec-08
                                                                                          Social Networks




                                                                                                            Jan-09

                                                                                                            Feb-09
                                                                                          Advertising




                                                                                                            Mar-09

                                                                                                            Apr-09

                                                                                                            May-09
                                                                                          Gaming
                                                                                                                                                                                                           # Deals




                                                                                                            Jun-09

                                                                                                             Jul-09

                                                                                                            Aug-09
                                                                                          Virtual World




                                                                                                            Sep-09

                                                                                                            Oct-09
                                                                                          Video




                                                                                                            Nov-09

                                                                                                            Dec-09

                                                                                                            Jan-10

                                                                                                            Feb-10

                                                                                                            Mar-10

                                                                                                            Apr-10
                         Top 5 sectors average $170 mm & 15 deals per month (aggregate)




                                                                                                            May-10

                                                                                                            Jun-10
www.mackieresearch.com
 Financing Momentum
                                                      Approaching the
                                                      previous high set
                                                      in the summer of
              5,000
                                                      2008 – just before   14.0
                                                          the crash!
              4,500
                                                                           12.0
              4,000

              3,500                                                        10.0


              3,000
                                                                           8.0
     (US$m)




                                                                                  (US$m)
              2,500
                                                                           6.0
              2,000

              1,500                                                        4.0

              1,000
                                                                           2.0
               500

                 0                                                         0.0
                      Nov-04




                       Jul-05

                      Nov-05




                       Jul-06

                      Nov-06




                       Jul-07

                      Nov-07




                       Jul-08

                      Nov-08




                       Jul-09

                      Nov-09
                      Jan-05

                      May-05




                      Jan-06

                      May-06




                      Jan-07

                      May-07




                      Jan-08

                      May-08




                      Jan-09

                      May-09




                      Jan-10

                      May-10
                      Sep-04




                      Sep-05




                      Sep-06




                      Sep-07




                      Sep-08




                      Sep-09
                      Mar-05




                      Mar-06




                      Mar-07




                      Mar-08




                      Mar-09




                      Mar-10
                        Total (LTM)   Average Size (LTM)

30                                                                          www.mackieresearch.com
 Financing by Type (LTM)

                                     # Deals                                                                                              $ Raised

                                          Financing by T ype -L T M                                                                      Financing by T ype - L T M
                                                 (# deals )                                                                                  (amount rais ed)S eries E
                                                                                                                                                                4.1%
                                                                      A ngel/S eed
                                  NA                                     15. 1%                                              S eries D
                                 16. 1%                                                                                       11. 4%
                                                                                                                                                                            NA
                                                                                                                                                                           15.3%
                                                                                             Debt f ina nc ing
                                                                                                 3. 0%

         S eries E
           1.0%
                                                                                             PIPE
     S eries D                                                                               0. 4%
       5.0%

                                                                                                                                                                                         A ngel/S eed
                                                                                                                                                                                            3. 2%
                                                                                                                                                                                           Debt f ina ncing
                                                                                                                                                                                               1. 0%

                                                                                                                 S eries C
                                                                                                                  28. 8%                                                                 PIPE
                                                                                                                                                                                        7. 3%

     S eries C
      14. 9%




                                                                                                                                                                                   S eries A
                                                                                                                                                                                    11. 1%


                     S eries B                                                   S eries A
                      20. 7%                                                      23. 9%




31                                                                                                                                                                       www.mackieresearch.com
 Financing by Geography (LTM)

              # Deals                                                                   $ Raised

             Financing/M&A by Country - LTM (#)                                    Financing/M&A by Country - LTM ($)
                                                                                                      UK                          Israel
                                                                                                     7.0%             Russia      3.3%
                                                                                                                       3.3%


                                                   UK
                                                                                                                                           China
                                                  3.3%                Luxembourg
                                                                                                                                           3.2%
                                                                        22.0%

                                                                                                                                                   Canada
                                                                                                                                                    1.8%
                                                         Canada
                                                          2.9%
                                                           Israel                                                                                      ROW
                                                           2.2%                                                                                        3.9%

                                                              China
                                                              2.2%
      USA
     81.0%

                                                             ROW
                                                             8.4%




                                                                                                                                       USA
                                                                                                                                      55.5%




32                                                                                                                             www.mackieresearch.com
  Financing by Type

                                                                                               # Deals                                                                                                                                                                                                                                                                    $ Raised

                                                                                                                 Financing by Type                                                                                                                                                                                                                                             Financing by Type
                                                                                                                 (Number of Deals)                                                                                                                                                                                                                                              (Amount raised)


       180                                                                                                                                                                                                                                                          1,400.0


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      1,257.3
       160                                                                                                                                                                                                                 156
                                                                                                                                                                                                                                                                    1,200.0                                                                                                                                              1,170.6
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       151.8


       140                                                                                                                                                                                                                 29
                                                                                                                                                                                                                                                                                                                                                                                                                          271.1
                                                                                                                                                                                                                                                                    1,000.0
                                                                                                                                                     120                                                                                                                                                                                                                                                                                                                                               262.5
       120                                                                                                                                                                                                                 11

                                                                              108                                                                                                                                                                                                                                                                                                                                                                              841.5
                                                                                                                                                                                        107
                                                                               2                                                                     23                                                                                                                                                                                                                                                                   161.0
                                                                               7                                 98                                                                                                                                                  800.0                                                                                                                                                                                                                                      Other
       100                                                                                                                                                                                                                         Other                                                                                                       735.4
                                                                                                                  1                                                                                                                                                                                       714.7                                                                                                                                                                                                 Late Stage (D/E)




                                                                                                                                                                                                                                                           (US$m)
                                                                                                                                                     7                                  27                                                                                                                                                      5.1                                                                                                            235.4
                                                                                                                 9                                                                                                                 Late Stage (D/E)                                                        0.0                                                                     669.6                                                                                                                        Mid-Stage (B/C)
 (#)




                                                                                                                                                                                                                           53
                                                                                                                                                                                                                                   Mid-Stage (B/C)                                                         94.2                                                                     0.0
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Early Stage (Angel/A)
           80                              74                                                                                                                                           3                                          Early Stage (Angel/A)             600.0                                                                     235.3                                                           573.9                                                                                            Total
                                                                              44                                                                                                                                                                                                                                                                                                   183.9                                                                       57.0 540.2
                                           1
                                           7                                                                                                         41                                                                                                                                                                                                                                                        116.4                                                    45.5
                                                                                                                 45                                                                             60                                                                                                                                                                                                                                                                                          458.1 664.6
           60                                                                                                                                                                                                                                                                                                                                                                                                             554.8                                         66.6
                                                                                                                                                                                        38                                                                                                                                                                                                                                                                                                  55.6
                                                                                                                                                                                                11                50                                                                                      429.0             363.7                                                                              76.5
                                                                     46                                                                     46                                                           46                                                          400.0                                                                                                                                                                  360.0
                                                                                                                          43                                                   44               3                                                                                                                            5.1
                                                                     0
                                                                     3                                                                                                                                            10                                                          313.1                                                            284.6                                                 314.2                                                     425.5
                                           45
           40                                               34
                                                                                      37       36                         8
                                                                                                                                            8
                                                                                                                                                                      34
                                                                                                                                                                                                         8                                                                     0.0
                                                                                                                                                                                                                                                                              19.0                                                                                                 355.8 282.4
                                                                                                                                                                                                                                                                                                                                                                                       255.4                                                                                      259.0 191.9
                                                                                                                                                                               13                        1
                31                                                   18
                                                                                      0
                                                                                      3        1
                                                                                               2                          2        31       3
                                                                                                                                                             29                                 25
                                                                                                                                                                                                                  7
                                                                                                                                                                                                                                                                                                          205.0 210.7             227.6 237.8            84.2              226.1 157.9
                                                   28        2                                                                                                                                                                                                                     203.7 197.9                              204.2                  70.6                                            374.8 50.7
                1
                2                 24                         2                                          25                                                            10       -                         16
                                                                                                                                                                                                                           63                                                                                                      0.0 0.0                     316.4        5.0        72.5
                                                    0
                                                    2                         55      13                                  12       7        18                4                                                   12                                                 200.0          0.0 0.0
                                                                                                                                                                                                                                                                              199.1 48.2 27.0       161.0        0.0
                                                                                                                                                                                                                                                                                                                 18.3        0.0 19.8
                                                                                                                                                                                                                                                                                                                             31.0                  32.0 52.5                47.0 10.0 -                  4.0
                         19       0                                                            17        0
                                                                                                         4                         2                 49       2       1        13                                                                                                                                                       133.1
                                  3                 9       17                                                   43                                                                                                                                                                                   0.0
                                                                                                                                                                                                                                                                                                     12.0
           20             0
                          2                                                                                                                                  10                         39                                                                                                                      111.7                                                                                   143.6 146.2
                21                                                                                                                 11                                 15                                                                                                                                                     99.8 168.8            123.8 114.5             127.8 163.4 134.3
                                  14                                 25                                 15                                                                                                                                                                         108.0 122.0 191.5 74.6 98.4        210.4                                          183.7                                          178.5
                         10                21                                         21                                  21                                                                    21       21       21
                                                   17                                          16                                           17                                 18                                                                                             95.0                                                      87.2 129.9                                           123.6
                                                            13                                                                     11                        13                                                                                                                                      74.4 55.3 80.7          73.4 39.0              56.0 63.1 64.6                                 53.4 60.7 64.4
                7        7        7                                                                     6                                                             8                                                                                                             47.6 48.9                                           17.5                                46.3 28.8 48.6
       -                                                                                                                                                                                                                                                               -


                                                                                                                                                                                                                                                                               Jan-09

                                                                                                                                                                                                                                                                                        Feb-09

                                                                                                                                                                                                                                                                                                 Mar-09

                                                                                                                                                                                                                                                                                                           Q1/09

                                                                                                                                                                                                                                                                                                                   Apr-09

                                                                                                                                                                                                                                                                                                                             May-09

                                                                                                                                                                                                                                                                                                                                      Jun-09

                                                                                                                                                                                                                                                                                                                                                Q2/09

                                                                                                                                                                                                                                                                                                                                                        Jul-09

                                                                                                                                                                                                                                                                                                                                                                 Aug-09

                                                                                                                                                                                                                                                                                                                                                                          Sep-09

                                                                                                                                                                                                                                                                                                                                                                                    Q3/09

                                                                                                                                                                                                                                                                                                                                                                                            Oct-09

                                                                                                                                                                                                                                                                                                                                                                                                      Nov-09

                                                                                                                                                                                                                                                                                                                                                                                                                Dec-09

                                                                                                                                                                                                                                                                                                                                                                                                                           Q4/09

                                                                                                                                                                                                                                                                                                                                                                                                                                   Jan-10

                                                                                                                                                                                                                                                                                                                                                                                                                                             Feb-10

                                                                                                                                                                                                                                                                                                                                                                                                                                                      Mar-10

                                                                                                                                                                                                                                                                                                                                                                                                                                                                Q1/10

                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Apr-10

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   May-10

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Jun-10

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Q2/10
                         Feb-09

                                  Mar-09




                                                            May-09




                                                                                                                                                                      Feb-10

                                                                                                                                                                               Mar-10




                                                                                                                                                                                                         May-10
                Jan-09




                                           Q1/09




                                                                     Jun-09

                                                                              Q2/09

                                                                                      Jul-09




                                                                                                                  Q3/09

                                                                                                                          Oct-09

                                                                                                                                   Nov-09

                                                                                                                                            Dec-09

                                                                                                                                                     Q4/09

                                                                                                                                                             Jan-10




                                                                                                                                                                                        Q1/10




                                                                                                                                                                                                                  Jun-10

                                                                                                                                                                                                                           Q2/10
                                                                                                        Sep-09
                                                   Apr-09




                                                                                               Aug-09




                                                                                                                                                                                                Apr-10




33                                                                                                                                                                                                                                                                                                                                                                                                                                                             www.mackieresearch.com
 Top 10 Deals (2010 YTD)
                                               Financing                                                                                                                      Acquisitions


 350.0                                                                                                                                   250

                                                                                                                                               225.0
            300.0
 300.0

                                                                                                                                         200
                                                                                                                                                       187.5
 250.0

                                                                                                                                                               160.0
 200.0
                                                                                                                                         150                             142.0

                                                                                                                                                                                  126.5
                           147.0
 150.0                              135.0
                                                                                                                                                                                           100.0
                                                                                                                                         100
 100.0
                                                                                                                                                                                                     80.0
                                                                                                                                                                                                                75.0
                                                                                                                                                                                                                       70.0
                                               50.0    50.0                                                                                                                                                                      59.8
     50.0                                                           44.0            40.0           35.0           33.0      31.0
                                                                                                                                          50

      0.0
            Technologies



                            Zynga




                                                                     LivingSocial




                                                                                                                  Playdom




                                                                                                                             HauteLook
                                     Groupon




                                                                                                    Gilt Groupe
                                                       Glam Media




                                                                                    Tremor Media
                                                Qiyi
             Digital Sky




                                                                                                                                           0
                                                                                                                                               Siri    ICQ     Turbine   Jigsaw   Alloy   Ankeena    Mochi     Tsavo   Invite   GameHi
                                                                                                                                                                                          Networks   Media     Media   Media




34                                                                                                                                                                                                           www.mackieresearch.com
   Upcoming Events/Earnings
       Company                                  Date         Time         Quarter   Conf Call Details
       The New York Times Company (NYSE:NYT)   22-Jul-10 11:00 AM (EST)    Q2/10    888-293-6979
       Tree.Com, Inc. (NasdaqGM:TREE)          29-Jul-10 11:00 AM (EST)    Q2/10    877-874-1588




Source: CapitalIQ

  35                                                                                                www.mackieresearch.com
 Public Company Listing                                                   T rading                  C urre nt     US $ Mark e t
     C om pany Nam e                          T ick e r         Exchange C ur re ncy HQ               Price        C ap (m m ) Em ploye e s
     A ccelerize New M edia, Inc.             ACLZ              OTCBB       USD     United States             1         20.3         10
     A cto z So ft Co ., Ltd.                 A052790           KOSE        KRW     So uth Ko rea        12,250         90.3        NA
     A OL, Inc.                               AOL               NYSE        USD     United States            22      2,324.4       6,700
     A Q Interactive, Inc.                    3838              TSE         JP Y    Japan               158,800         96.7        NA
     A sknet AG                               XTRA :A 5A        XTRA        EUR     Germany                   3         19.2        NA
     B eyo nd Co mmerce, Inc.                 BYOC              OTCBB       USD     United States             0         5.5          16
     B roadWebA sia Inc.                      BWB A             OTCPK       USD     United States             0          1.7         46
     CDC Co rp.                               CHIN.A            NasdaqGS    USD     Ho ng Ko ng               2       277.0         NA
     Changyo u.co m Limited                   CYOU              NasdaqGS    USD     China                    27      1,389.2       1,308
     Chinese Gamer Internatio nal             GTSM :3083        GTSM        TWD     Taiwan                  271       725.3         NA
     Co rnerWorld Co rpo ratio n              CWRL              OTCBB       USD     United States             0          1.9         16
     Cyberplex Inc.                           TSX:CX            TSX         CA D    Canada                    1         82.5        NA
     DA DA SpA                                CM :DA            CM          EUR     Italy                     4         79.4        597
     Dena Co . Ltd.                           TSE:2432          TSE         JP Y    Japan                 2,591      4,1 36.6       NA
     DigitalPo st Interactive, Inc.           DGLP              OTCBB       USD     United States             0         6.5           6
     DigitalTown, Inc.                        DGTW              OTCBB       USD     United States             1         33.0        NA
     Do lphin Digital M edia, Inc.            DP DM             OTCBB       USD     United States             0         10.5        NA
     En2Go International, Inc.                ETGI              OTCBB       USD     United States             0         4.8         NA
     ePro Ltd.                                SEHK:8086         SEHK        HKD     Ho ng Ko ng               1         30.2        707
     Fluid M usic Canada, Inc.                TSX:FM N          TSX         CA D    United States             2       1 78.4        NA
     Fro gster Interactive P ictures A G      FRG               XTRA        EUR     Germany                  21         64.8        NA
     Gamania Digital Entertainment Co ., Ltd. 6180              GTSM        TWD     Taiwan                   53       262.4         NA
     GameOn Co Ltd.                           381 2             TSE         JP Y    Japan                76,600         82.9        NA
     Geo Sentric Oyj                          GEO1  V           HLSE        EUR     Finland                   0         22.2         120
     Giant Interactive Gro up, Inc.           GA                NYSE        USD     China                     7      1,603.9       1,575
     GigaM edia Ltd.                          GIGM              NasdaqGS    USD     Taiwan                    2       1 20.6        NA
     Glu M o bile, Inc.                       GLUU              NasdaqGM    USD     United States             1         39.2        479
     Gravity Co ., Ltd                        GRVY              NasdaqGM    USD     So uth Ko rea             2         43.2        455
     Gree, Inc.                               TSE:3632          TSE         JP Y    Japan                 7,480      3,788.6        NA
     GungHo Online Entertainment, Inc.        3765              OSE         JP Y    Japan               212,600       273.2         NA
     HanbitSo ft, Inc.                        A047080           KOSE        KRW     So uth Ko rea         4,875         88.8        NA
     HUGHES Telematics, Inc.                  HUTC              OTCBB       USD     United States             3         91 .0       276
                                              SEHK:21 5
     Hutchison Teleco mmunicatio ns Ho ng Kong Ho ldings Ltd.   SEHK        HKD     Ho ng Ko ng               2      1 ,039.1      1,732
     IA C/InterActiveCo rp.                   IA CI             NasdaqGS    USD     United States            23      2,552.6       3,200
     IA S Energy, Inc.                        IA SC.A           OTCPK       USD     Canada                    0         3.7         NA
     infoGROUP , Inc.                         IUSA              NasdaqGS    USD     United States             8       459.1        3,1 46
     Internet Gro up SA                       WSE:IGR           WSE         P LN    P o land                  1         7.3         NA

36                                                                                                                                  www.mackieresearch.com
 Public Company Listing cont.
                                                                          T rading                   C urr e nt      US $ Mark e t
     C om pany Nam e                              T ick e r    Exc hange C ur re nc y HQ               Price          C ap (m m ) Em ploye e s
     Jumbuck Entertainment Limited                A SX:JM B    A SX         A UD     A ustralia               0.19         8.1          79
     Kent Internatio nal Ho ldings Inc.           KNTH         OTCP K       USD      United States            1.95        6.9          NA
     Kingso ft Co rpo ratio n Limited             3888         SEHK         HKD      China                    4.15       581  .5      2,735
     Kiwibo x.Co m, Inc.                          KIWB         OTCB B       USD      United States            0.01        4.5            6
     Lingo M edia Co rpo ratio n                  TSXV:LM      TSXV         CA D     Canada                  0.44         12.4         NA
     Lo o kSmart, Ltd.                            LOOK         NasdaqGM     USD      United States            1.33        22.8          65
     M ixi, Inc.                                  2121         TSE          JP Y     Japan               1
                                                                                                       41 ,500.00        71 2.4        NA
     M o bile Data Co rp.                         M B YL       OTCB B       USD      United States           0.05          1.2         NA
     M o dern Times Gro up M tg A B               M TG B       OM           SEK      Sweden                441 .60      3,764.7       2,936
     M o ggle, Inc                                DB :M 0C     DB           EUR      United States           0.85         49.0           2
     M OKO.mo bi Limited                          M KB         A SX         A UD     A ustralia              0.06         6.2          NA
     M ultiplied M edia Co rpo ratio n            TSXV:M M C   TSXV         CA D     Canada                   0.12        29.0         NA
     M yriad Gro up A G                           M YRN        SWX          CHF      Switzerland             4.45        199.2         NA
     NEOWIZ Games Co rpo ratio n                  A 095660     KOSE         KRW      So uth Ko rea      41,800.00        732.8         NA
     NetDrago n WebSo ft, Inc.                    777          SEHK         HKD      China                   3.66        247.4        2,901
     Netease.co m Inc.                            NTES         NasdaqGS     USD      China                  31 .74          1 .0
                                                                                                                         4,1 1         NA
     NeuLio n Inco rpo rated                      TSX:NLN      TSX          CA D     Canada                  0.55         62.1         224
     NeXplo re Co rpo ratio n                     NXP C        OTCP K       USD      United States           0.32         17.8         NA
     Ngi Gro up Inc.                              2497         TSE          JP Y     Japan             32,300.00          44.8         NA
     No rthgate Techno lo gies Limited            590057       B SE         INR      India                  17.80         13.4         NA
     OA O RB C Info rmatio n Systems              RB CI        M ICEX       RUB      Russia                 37.06         61
                                                                                                                         1 .5         2,523
     Open Text Co rp.                             OTEX         NasdaqGS     USD      Canada                 38.50       2,186.0       3,700
     Openwave Systems Inc.                        OP WV        NasdaqGS     USD      United States            2.14       179.5         590
     Oriented M edia Gro up B erhad               OM EDIA      KLSE         M YR     M alaysia               0.08          3.1         NA
     P aid Inc.                                   P A YD       OTCB B       USD      United States           0.28         74.6          20
     P erfect Wo rld Co ., Ltd.                   P WRD        NasdaqGS     USD      China                  22.1 6       ,1
                                                                                                                        1 09.3        2,896
     P latfo rma M edio wa P o int Gro up S.A .   WSE:P GM     WSE          P LN     P o land                 1.38        42.7         NA
     P NI Digital M edia Inc.                     TSXV:P N     TSXV         CA D     Canada                   1.52        50.4         NA
     P o ints Internatio nal Ltd.                 TSX:P TS     TSX          CA D     Canada                  0.62         89.9          93
     Quepasa Co rp.                               QP SA        OTCB B       USD      United States            4.15        53.8          71
     RealNetwo rks Inc.                           RNWK         NasdaqGS     USD      United States           3.39        458.5        1,754
     Sco re M edia Inc.                           TSX:SCR      TSX          CA D     Canada                  0.87         68.4         230
     Shanda Interactive Entertainment Ltd.        SNDA         NasdaqGS     USD      China                  39.98       2,373.9       5,721
     Shutterfly, Inc.                             SFLY         NasdaqGS     USD      United States          25.24        677.8         51 9
     SK Co mmunicatio ns Co ., Ltd.               A 066270     KOSE         KRW      So uth Ko rea     20,800.00         726.2         NA
37                                                                                                                                     www.mackieresearch.com
 Public Company Listing cont.
                                                                 T rading                   C urr e nt      US $ Mark e t
     C om pany Nam e                   T ick e r       Exchange C ur re ncy HQ                Price          C ap (m m ) Em ploye e s
     So cialGO P LC                    A IM :SGO       A IM        GB P    United Kingdom            0.01         7.0              9
     So cialwise, Inc.                 SCLW            OTCB B      USD     United States             0.49        24.5            NA
     So hu.co m Inc.                   SOHU            NasdaqGS    USD     China                    41.54       ,571
                                                                                                               1 .0             3,997
     Spark Networks, Inc.              LOV             A M EX      USD     United States             3.43        70.6            155
     SpectrumDNA , Inc.                SP XA           OTCB B      USD     United States             0.07         4.8              8
     Taleo Co rp.                      TLEO            NasdaqGM    USD     United States           26.02       1,034.6           91 6
     Tencent Holdings Ltd.             700             SEHK        HKD     China                  130.20      30,61  3.7        7,845
     The New Yo rk Times Co mpany      NYT             NYSE        USD     United States             9.74        ,41
                                                                                                               1 8.1            7,665
     The9 Limited                      NCTY            NasdaqGS    USD     China                     4.18       106.6            ,01
                                                                                                                                1 0
     TheStreet.co m, Inc.              TSCM            NasdaqGM    USD     United States             2.95        93.1            274
     TransGaming, Inc.                 TSXV:TNG        TSXV        CA D    Canada                    0.55        31 .6            28
     Tree.Com, Inc.                    TREE            NasdaqGM    USD     United States             6.54        73.3            700
     Unilava Co rpo ratio n            UNLA            OTCB B      USD     United States             0.08         8.0             40
     Uniserve Communications Co rp.    TSXV:USS        TSXV        CA D    Canada                    0.13         3.6            NA
     United Online, Inc.               UNTD            NasdaqGS    USD     United States             6.16      536.7            1,699
     UOM O M edia, Inc                 UOM O           OTCB B      USD     Canada                    0.02         1.4            NA
     ValueClick, Inc.                  VCLK            NasdaqGS    USD     United States            1 .50
                                                                                                     1         935.2            1,086
     Velti P lc                        VEL             A IM        GB P    United Kingdom            4.27       241  .9          459
     VOIS, Inc.                        VOIS            OTCB B      USD     United States             0.01        14.2              2
     WebM ediaB rands Inc              WEB M           NasdaqGS    USD     United States             0.94        35.2             83
     Webzen Inc.                       KOSE:A 069080   KOSE        KRW     So uth Ko rea       1 ,050.00
                                                                                                1               108.9            326
     Wizzard So ftware Corpo 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             0.10         5.7              1
     XING A G                             B
                                       O1 C            XTRA        EUR     Germany                 28.35        180.4            293
     YD Online Co rp.                  A 052770        KOSE        KRW     So uth Ko rea        4,51 0.00        56.3            NA
     Ynk Ko rea Inc.                   A 023770        KOSE        KRW     So uth Ko rea       2,900.00          19.2            NA
     Yo uB last Glo bal, Inc.          YB LT           OTCB B      USD     United States             0.15         5.2              6




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




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


   39                                                                                                                                                                      www.mackieresearch.com

				
DOCUMENT INFO
Shared By:
Stats:
views:98
posted:6/29/2010
language:English
pages:39
Description: June financing well ahead of average: Financing in the Web 2.0 universe in June was the third highest month (over the past 12) with total transaction value (excluding M&A) of $459.6 million from 51 transactions, averaging $9.0 million each - led by the $147 million Zynga financing. In comparison, total capital raised in June 2009 was $226.3 million, averaging $4.5 million over 50 deals. Excluding Dec 09 and Apr 10, the average monthly total is ~$260 million. Deals (M&A, Finance) Alloy, a provider of news and commentary concerning New Media, was acquired by ZelnickMedia for $127 mm. Facebook’s implied valuation rose to $24 bn as Elevation Partners purchased 5 mm shares of the company for $120 mm in the secondary market. Danish Skype competitor, Vopium, received $16.5 mm in financing from Indian financier, Raghuvinder Kataria. Social networking software developer based in France, Pearltrees, raised $1.6 mm. PapayaMobile, mobile application software company based in China, raised $4 mm. Two Israeli mobile developers received funding this week, including Perfecto Mobile ($4 mm) and Snaptu ($6 mm). Negative price performance The Web 2.0 public company universe fell this week, with 68% of companies seeing their market cap fall vs. 25% rising and 7% flat.