SOFTWARE & SERVICES
17 MARCH 2009
WEB 2.O WEEKLY
VIDEO AND GAMING LEAD MARCH CAPITAL MARKET ACTIVITY
MO ST AC T I V E S EC T O R S IN F IN A NC IN G - VI DE O & GAM IN G CO M PA NI E S
DAVID SHORE, CFA, MBA 416.860.6784
david.shore@researchcapital.com Arun Thomas (Associate) 416.860.7666
Video and Gaming companies have generated the most capital market activity so far in March, with two video companies (Vidyo and Auditude) receiving a combined $25.5 million in financing and three gaming companies (SuperSecret, Sports Composite, and OMGPOP) receiving $17.0 million in financing.
Capital Market Activity by Sector - March 2009
30.0
25.0
20.0
(US$m)
15.0 25.5
10.0 17.0 12.0 5.0 5.5 4.0 0.0 Video Gaming Mobile Mobile Ad Media Infrastructure Crow dsourced Content 1 1 3.9 2.0 1.3 Social Netw orks 1 1.3 Online Learning 1 0.8 Ad Netw ork
# companies
2 3 1 1 1
1
This report has been created b y Anal ysts that are emplo yed b y Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report.
T o ro n t o 4 1 6 . 8 6 0 . 7 6 0 0 Montreal 514.399.1500 w w w . r e s e a rc h c a p i t a l . c o m Vancouver 604.662.1800 Calgary 403.265.7400 Regina 306.566.7550
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THE WEB 2.0 UNIVERSE Eighty-nine public Web 2.0 companies identified: Our W eb 2.0 universe contains 89 companies, with a combined market cap of $31.3 billion. These include a wide variety of companies, including MMOG (Massive Multi-Player Online Gaming) companies, social networking software companies, media sharing companies, and social lending companies. See below for a summary of the full universe (Figure 1). The average market cap for the group is ~$350 million (but a median of only $24 million), with average trailing revenue of $130 million (median $40 million). The companies are also generally profitable, with a median EBITDA margin of 13.3%. On a valuation basis, the overall average is 3.9x trailing revenue (median 1.0x) and 8.8x trailing EBITDA (median 6.0x). Twelve of the companies have more than 500 employees.
C omparable C ompany Analys is > Web 2.0
C ompany Na me
Accelerize N ew Media, I nc. Actoz S oft C o. , Ltd. AQ Inte ractive, Inc. As s ociated Me dia Holdings Inc. Bi gs tring C orp. Be ta wave C orporation Be yond C omme rce, Inc. Br ight T hi ngs plc Br oadW ebA s ia I nc. C DC C orp. C hina G ateway C orpora tion C hines e G amer International C ornerW orld C orporation DAD A S pA DXN Hol dings Bhd Dibz International, Inc. Digita lP os t Interactive, Inc. Digita lT own, I nc. Dolphin Digita l Me dia , Inc. E olith C o. Ltd. E xtensi ons, Inc. F ina ncia l Me dia Group, Inc. F luid Mus ic C anada , I nc. F rogs te r Inte ractive P icture s A G Ga mania Digital E nterta inme nt C o. , L td. Ga meO n C o L td. Ge oS entri c O yj Gi ant Inte ractive G roup, Inc. Gi gaMe dia L td. Gravity C o., Ltd Gree, Inc. GungHo Online E nte rtainme nt, Inc. HanbitS oft, Inc. IA C /Inte rActive C orp. IA S E ne rgy, Inc. IdeaE dge, Inc. is ee media Inc. J umbuck E ntertainme nt P ty Ltd. J umpT V I nc. K a boos e I nc. K i ngs oft C o. Ltd. Lingo Me dia C orpora tion Live World I nc. LookS mart, Ltd. Magnitude Informa ti on S ys tems I nc. Mixi, I nc. Mode rn T i mes Gr oup Mtg A B Moggle , Inc MOK O. mobi L imited NE O W IZ G ame s C orpora tion NetDra gon We bS oft, Inc. Netea s e. com Inc. NeXplore C orporation Ngi G roup Inc. Northgate T e chnologies L imited Open T e xt C orp. Openwa ve S ys tems I nc. P e rfect W orld C o., Ltd. P hotoC hannel Ne tworks Inc. Quepas a C orp. OA O R B C Informa ti on S ys tems S handa Intera cti ve E nte rtainment L td. S hutterfly, I nc. S K C ommunications C o. , Ltd. S NA P I nter active, Inc. S NM G lobal Holdings S ocial Me dia V enure s , I nc. S i te s earch C orpora tion S park Ne tworks , I nc. S pectrumDNA, Inc. T encent Holdings Ltd. T he P arent C ompany T he 9 Limited T he S tre et.com, Inc. T otal S port O nl ine A S T ree . C om, Inc. Unis e rve C ommunications C orp. Unite d Online Inc. UOMO Medi a, Inc VO IS , I nc. W ebzen Inc. W izza rd S oftwa re C orporation W oozyF ly, Inc. W orlds .com Inc. W ynds torm C orporation XI NG A G Y e dangO nline C orp. Y nk K orea Inc. ZipL ocal I nc. High Low Average Medi an
L TM as of Ti cker
9 /3 0/20 08 9 /3 0/20 08 1 2/31 /200 8 6 /3 0/20 07 9 /3 0/20 08 9 /3 0/20 08 9 /3 0/20 08 9 /3 0/20 08 9 /3 0/20 08 9 /3 0/20 08 9 /3 0/20 08 9 /3 0/20 08 1 0/31 /200 8 9 /3 0/20 08 1 1/30 /200 8 NA 9 /3 0/20 08 1 1/30 /200 8 NA 1 2/31 /200 7 9 /3 0/20 08 1 1/30 /200 8 9 /3 0/20 08 6 /3 0/20 08 9 /3 0/20 08 1 2/31 /200 8 9 /3 0/20 08 1 2/31 /200 8 9 /3 0/20 08 9 /3 0/20 08 6 /3 0/20 08 9 /3 0/20 08 9 /3 0/20 08 1 2/31 /200 8 1 0/31 /200 8 1 2/31 /200 8 9 /3 0/20 08 1 2/31 /200 8 6 /3 0/20 08 9 /3 0/20 08 9 /3 0/20 08 9 /3 0/20 08 9 /3 0/20 08 9 /3 0/20 08 9 /3 0/20 08 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 7 9 /3 0/20 08 1 2/31 /200 8 9 /3 0/20 07 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 9 /3 0/20 08 1 2/31 /200 7 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 7 9 /3 0/20 08 9 /3 0/20 08 1 2/31 /200 8 1 0/31 /200 8 1 2/31 /200 8 9 /3 0/20 08 9 /3 0/20 08 8/2/2 008 1 2/31 /200 8 1 2/31 /200 8 3 /3 1/20 06 1 2/31 /200 8 1 1/30 /200 8 1 2/31 /200 8 1 0/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 9 /3 0/20 08 9 /3 0/20 08 9 /3 0/20 08 NA 9 /3 0/20 08 1 2/31 /200 7 1 2/31 /200 7 9 /3 0/20 08 AC LZ A05 279 0 3 838 AS MH BSG C B W AV B YO C AIM: B GT B W BA C HI N. A CG W Y G T S M: 3 083 CW R L C M: DA DX N DI BZ DG LP DG T W DP DM A04 106 0 E XT I F NG P T S X: F MN FRG 6 180 3 812 G E O 1V GA G IG M GRVY T S E : 3 632 3 765 A04 708 0 IAC I IAS C . A O T C B B: ID AE IE E AS X :J MB T S X: J T V T S X: K AB 3 888 T S XV :L M L VW D L OO K MA GY 2 121 MT G B MMO G MK B A09 566 0 7 77 NT E S NX P C 2 497 5 900 57 OTE X OPW V PWRD T S XV :P N QPS A RB CI S NDA S F LY A06 627 0 S T VI S NMN S MVI S T PC L OV S PX A 7 00 K IDS . Q NC T Y TS CM TOS O TRE E T S XV :U S S UNT D UO MO V OI S W ZE N W ZE W ZY F W DDD W YN D O 1B C A05 277 0 A02 377 0 T S XV :ZIP
E xc hange
OTCB B K OS E TS E OTCP K OTCB B OTCB B OTCB B A IM OTCP K Na s daqG S OTCB B G TS M OTCB B CM K LS E OTCP K OTCB B OTCB B OTCB B K OS E OTCP K OTCB B TS X XT R A G TS M TS E HL S E NY S E Na s daqG S Na s daqG M TS E OSE K OS E Na s daqG S OTCB B OTCB B T S XV ASX TS X TS X S EHK T S XV OTCP K Na s daqG M OTCB B TS E OM OTCB B ASX K OS E S EHK Na s daqG S OTCP K TS E B SE Na s daqG S Na s daqG S Na s daqG S T S XV Na s daqC M R TS Na s daqG S Na s daqG S K OS E OTCB B OTCP K OTCP K OTCB B A ME X OTCB B S EHK OTCP K Na s daqG S Na s daqG M O T C NO Na s daqG M T S XV Na s daqG S OTCB B OTCB B Na s daqG M A ME X OTCB B OTCB B OTCB B XT R A K OS E K OS E T S XV
Trading C urrency
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C urrent Price
0. 23 10 ,8 50 3 3, 40 0. 00 0 0. 01 0 0. 57 0 0. 51 1 0. 00 1 51 0. 14 5 0. 28 0 0. 00 3 0. 49 5 30 0. 15 0 0. 40 6 2 9. 60 83 ,0 00 0. 03 7 5. 70 1 5, 26 0. 00 1 11 ,1 00 3, 31 0. 00 15 0. 06 0 0. 08 0 0. 40 0 2. 72 1 0. 20 1 0. 02 3 38 ,0 00 12 9. 50 2 0. 06 38 ,8 50 3. 40 23 0. 94 18 ,6 40 3 3. 35 32 0. 82 13 1. 55 1 0. 24 35 8. 93 7 ,7 20 0. 95 0 1. 20 5 2. 34 0 5 4. 40 0 1 3. 33 2 0. 04 4 0. 05 4 0. 06 0 1. 62 0 0. 15 0 0. 12 28 6, 85 0. 00 3 ,6 40 0. 02
US D M ark et C ap ($m)
6. 2 6 6. 6 1 8. 5 0. 1 0. 7 5. 3 2 3. 3 2. 9 4 3. 3 9 8. 2 0. 0 373 . 0 6. 6 9 7. 6 1 7. 8 0. 0 0. 3 8 1. 5 2 3. 8 1 7. 2 1 4. 2 0. 9 1 6. 5 1 7. 0 130 . 6 8 1. 7 2 4. 3 1, 661 . 1 308 . 0 1 7. 5 1, 194 . 2 129 . 3 5 0. 5 2, 059 . 2 4. 2 1 6. 9 3. 2 1 4. 8 3 5. 8 3 8. 6 376 . 7 9. 1 6. 2 1 7. 4 7. 9 526 . 5 1, 009 . 8 7 2. 6 3. 2 260 . 0 231 . 8 2, 774 . 8 5 2. 4 2 3. 4 2 2. 7 1, 656 . 1 6 8. 3 672 . 1 4 0. 9 1 4. 3 3 3. 3 2, 429 . 1 224 . 6 221 . 1 1 0. 1 0. 0 0. 0 4 0. 3 4 8. 1 8. 8 12 ,6 13.5 1. 3 357 . 5 5 9. 5 0. 2 4 2. 5 1. 0 329 . 4 5. 1 3. 3 1 9. 2 1 8. 1 2. 6 1 0. 0 2. 2 190 . 4 7 4. 6 6. 2 0. 9 12 ,6 13.5 0. 0 351.7 2 4. 3
US D L T M Total R ev ($m )
3. 2 50. 9 61. 4 0. 1 0. 1 6. 3 1. 1 0. 2 0. 0 428 . 1 6. 7 37. 4 0. 6 220 . 4 75. 9 NA 0. 4 NM NA 17. 4 NM 6. 8 4. 2 5. 2 108 . 1 75. 9 5. 3 233 . 1 200 . 5 34. 1 29. 9 104 . 0 48. 3 1 , 445 . 1 0. 0 0. 0 1. 1 11. 9 11. 5 58. 4 106 . 7 3. 2 11. 7 69. 5 0. 1 119 . 4 1 , 558 . 2 NM 1. 0 125 . 6 95. 2 450 . 8 NM 100 . 1 131 . 3 769 . 3 199 . 6 210 . 1 15. 7 0. 1 136 . 8 521 . 7 213 . 5 144 . 4 2. 3 2. 0 0. 1 NM 57. 3 0. 1 903 . 2 112 . 0 249 . 7 71. 9 2. 0 228 . 6 23. 5 669 . 4 0. 5 0. 0 19. 8 6. 2 0. 0 0. 1 NA 40. 7 47. 8 13. 6 2. 8 1 ,558.2 0. 0 132.5 40 .7
US D L TM T otal E B IT DA ($m )
( 4. 7) 9. 3 4. 9 ( 2. 3) ( 2. 1) (11 .0 ) ( 7. 7) ( 1. 6) ( 4. 6) 18 .8 ( 6. 6) 17 .6 NM 35 .2 10 .1 NM ( 3. 3) ( 2. 5) NM ( 0. 0) NM 1. 2 ( 8. 6) ( 3. 2) 18 .3 20 .1 (12 .3 ) 1 44. 3 48 .0 6. 5 10 .8 15 .3 (12 .4 ) 64 .6 ( 0. 9) ( 4. 6) ( 4. 3) 4. 4 ( 1. 8) 4. 4 36 .0 ( 1. 4) ( 1. 2) ( 2. 6) ( 3. 2) 45 .4 2 49. 1 ( 1. 1) ( 2. 0) 33 .7 46 .3 2 93. 1 ( 4. 9) 30 .8 23 .1 1 95. 0 (10 .2 ) 1 13. 7 ( 0. 8) (11 .8 ) 17 .9 2 39. 7 28 .4 13 .6 0. 2 ( 0. 7) ( 0. 1) ( 0. 9) 12 .4 ( 2. 7) 4 47. 4 (13 .5 ) 84 .1 7. 0 ( 1. 0) (23 .9 ) 0. 1 1 53. 9 ( 0. 4) ( 1. 3) ( 2. 0) ( 6. 5) NM NM NM 15 .8 10 .7 ( 1. 0) ( 3. 8) 44 7. 4 -2 3. 9 28.5 0 .2
E B IT DA %
NM 18.3 % 8. 0% NM NM NM -9 8. 9% 47.1 % NM 16.0 % 13.3 % NM NM NM NM -0 .3 % NM 18.3 % NM -6 0. 6% 16.9 % 26.4 % NM 61.9 % 23.9 % 19.2 % 36.0 % 14.7 % -2 5. 6% 4. 5% NM NM NM 37.2 % -1 5. 3% 7. 6% 33.8 % -4 2. 5% -1 0. 1% -3 .7 % NM 38.0 % 16.0 % NM NM 26.9 % 48.6 % 65.0 % NM 30.8 % 17.6 % 25.3 % -5 .1 % 54.1 % -4 .9 % NM 13.1 % 46.0 % 13.3 % 9. 4% 10.1 % -3 4. 8% -6 0. 5% NM 21.7 % NM 49.5 % -1 2. 0% 33.7 % 9. 7% -5 0. 6% -1 0. 4% 0. 4% 23.0 % -9 1. 6% NM -1 0. 1% NM NM NM NM 38.8 % 22.4 % -7 .6 % NM 0. 0% 65.0 % -9 8. 9% 8. 2% 65.0 % -9 8. 9% 7.3% 13.3 %
T E V /L T M R evenue
3. 3 x 0. 8 x 8. 0 x 2 8. 9x 2. 5 x 2 4. 1x 1 2. 0x 0. 4 x 0. 0 x 8. 5 x 1 3. 1x 0. 6 x 0. 5 x 2. 8 x 1. 0 x 0. 0 x 0. 7 x 3. 1 x 1. 0 x 0. 3 x 3. 6 x 1. 2 x 3 7. 8x 1. 0 x 0. 7 x 0. 2 x 0. 6 x 0. 9 x 3. 9 x 0. 8 x 2. 7 x 3. 1 x 0. 4 x 3. 5 x 1. 0 x 2. 4 x 2. 0 x 0. 6 x 0. 2 x 2. 3 x 2. 5 x 0. 0 x 0. 6 x 1. 5 x 3. 9 x 1. 1 x 0. 1 x 0. 8 x 1 5. 2x 0. 2 x 4. 6 x 0. 2 x 0. 1 x 1. 0 x 1 1. 4x 2. 9 x 3. 3 x 1. 5 x 0. 5 x 0. 6 x 3 7. 8x 0. 0 x 3.9x 1. 0 x
TE V /L T M E B I TDA
4 .5 x 8 .2 x 18. 0x 4 .0 x 3 .7 x 0 .0 x 5 .8 x 1 .2 x 5 .0 x 6 .8 x 4 .8 x 2 .4 x 10. 2x 8 .0 x 9 .3 x 6 .0 x 7 .5 x 1 .3 x 1 .0 x 9 .2 x 0 .1 x 4 .8 x 16. 3x 38. 9x 3 .9 x 30. 7x 31. 3x 4 .1 x 8 .5 x 6 .9 x 38. 9x 0 .0 x 8.8x 6 .0 x
E mployees
20 NA NA 3 8 41 25 9 46 3 ,1 25 37 NA NA 5 74 NA NA 11 3 6 NA 2 22 29 NA NA NA 92 NA 9 75 6 36 NA NA NA 3 ,2 00 NA NA NA 72 NA NA 1 ,6 60 NA 73 93 13 NA NA 3 NA NA 1 ,4 82 NA 19 NA 2 86 3 ,4 00 6 27 NA NA 63 NA NA 5 14 NA 5 33 NA 15 NA 7 6 ,0 39 3 47 NA NA 16 NA NA 1 ,4 69 NA 4 3 30 1 10 14 1 NA 1 61 NA NA NA 6, 03 9 1 547 73
Figure 1. Web 2.0 Universe Summary Source. Capital IQ
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C A P I T A L M A R K E T S A C T I V I T Y (M & A A N D F I N A N C I N G ) Please note that we have removed a few of the charts from the W eb 2.0 Weekly that are better looked at on a monthly basis, as opposed to weekly. March activity on pace with busy February: At the halfway point of March, there have been 13 financings announced (total $73.2 million, average $5.6 million) compared to 25 financings announced in February, totalling $185.5 million, or $7.4 million on average (Figure 2). The average value for February was above the $6.8 million average for January, with four financings over $15 million in February (Twitter, Synthasite, Tremor Media, and Offerpal Media) vs. no deals over $15 million in January.
Financing Activity Last Three Months
250.0 8.0
7.0 200.0 6.0
5.0 150.0 (US$m) (US$m)
4.0
100.0 3.0
2.0 50.0 1.0
0.0 Jan-09 Feb-09 Total Average Mar-09
0.0
Figure 2. Financings, Last Three Months Source. Company reports
Vidyo largest deal in March: The largest deal thus far in March is the $15 million Series D round for Vidyo (Figure 3). For additional details, see Figures 24 and 25 (at end of note).
(US$m) 10.0 15.0 20.0 25.0 30.0 35.0 40.0 0.0 5.0
Figure 3. Capital Market Activity, Last Three Months Source. Company reports
Financing Summary - Last Three Months
Twitter Synthasite Tremor Media Aster Data Systems Vidyo Offerpal Media Imagini Yodle Emergent Game Technologies AdMob SendMe Inc. Outbrain VirtuOz Auditude SuperSecret RatePoint Nurien DECA IMVU NewsGator Go Internet Media One True Media Tvtrip Play Hard Sports SundaySky JibJab Xobni InsideView Kewego Motionbox Tongxue SocialMedia Fliqz Oodle Greystripe Wamba OMGPOP Sportsblogs Geni AboutUs Gbox TextDigger OneSpot Simulmedia FetchDog Mixpo Virtual Fairground Tynt E-Global Sports Network 7 Billion People FamilyLink.com Tripwolf mEgo WhistleBox Sports Composite DE Hunch Mendeley Outright Tvinci Filtrbox AdultSpace MMO Life Cake Financial Myngle Hubdub Snooth CoveritLive 33Across fav.or.it BackType Identi.ca Meez Pulse Entertainment Jan-09 Mar-09 Feb-09
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Video continues to be the most active sector: Activity over the last three months was busiest in the video sector, with 14 companies raising almost $110 million (Figure 4). Social networking companies have the next highest totals, with 10 companies raising $48.0 million.
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Capital Market Activity by Sector - Last Three Months
120.0
100.0
80.0
(US$m)
60.0 109.1
40.0
48.0 20.0 42.3 42.3 35.0 26.5 25.0 22.5
20.9 15.0 12.4 12.0 11.5 11.4 10.0 9.5
6.2 Blog
5.5 Mobile Ad
4.3 Search
4.0 Media
Comment/Reputation
0.0 Gaming Wiki Microblog Infrastructure Social Networks Virtual Goods Virtual World Aggregation Video Ad Network
3.2 Crowdsourced Content
2.0 Financial Services 1
1.3 Online Learning 1
Micromedia
Travel
Mobile
RSS 1
14
10
7
5
1
4
2
4
2
1
3
1
2
1
Analytics 2
3
1
1
1
2
Figure 4. Capital Market Activity, by Sector, Last Three Months Source. Company reports
C A P I T A L M A R K E T S A C T I V I T Y (P R I C E P E R F O R M A N C E ) Price Performance: Our W eb 2.0 index (market-cap weighted) underperformed the NASDAQ composite index from mid 2008 until recently when it has moved higher than the NASDAQ index (Figure 5).
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Web 2.0 Index Price Performance
140
120
100
80
60
40
20
0 3/17/2008 3/31/2008 4/14/2008 4/28/2008 5/12/2008 5/26/2008 6/23/2008 7/21/2008 8/18/2008 9/15/2008 9/29/2008 1/19/2009 2/16/2009 10/13/2008 10/27/2008 11/10/2008 11/24/2008 12/22/2008 3/16/2009 12/8/2008 6/9/2008 7/7/2008 8/4/2008 9/1/2008 1/5/2009 2/2/2009 3/2/2009
^COMP - Share Pricing
Figure 5. Web 2.0 Price Performance Source. Capital IQ
Index: Web 2.0 X (Market Cap)
Almost all companies rise – Frogster leads: Almost all the companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with only five companies showing negative returns on the week. Frogster Interactive (FRG-XTRA) led the group with a stellar 50.0% return over the past week. PhotoChannel Networks (PN-TSX V) had the worst return, dropping 6.1% in the week.
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Frogs ter Interac tive Pic tures A G The9 Limited Webz en Inc . GigaMedia Ltd. S K Communic ations Co., Ltd. Quepas a Corp. S hutterf ly , Inc . Perf ec t World Co., Ltd. DigitalTow n, Inc . Gamania Digital Entertainment Tenc ent Holdings Ltd. Ngi G roup Inc . XING A G S handa Interac tive Modern Times Group Mtg A B G ree, Inc . Mix i, Inc . Northgate Tec hnologies Limited Y edangOnline Corp. IA C/InterA c tiveCorp. Open Tex t Corp. Tree.Com, Inc . Neteas e.c om Inc . TheS treet.c om, Inc . A Q Interac tive, Inc . NEOWIZ Games Corporation Y nk K orea Inc . LookS mart, Ltd. Chines e Gamer International HanbitS of t, Inc . G iant Interac tive G roup, Inc . K ings of t Co. Ltd. A c toz S of t Co., Ltd. G ameOn Co Ltd. NetDragon WebS of t, Inc . United Online Inc . S park Netw orks , Inc . Moggle, Inc S oc ial Media V enures , Inc . Eolith Co. Ltd. DA DA S pA G ungHo Online Entertainment, PhotoChannel Netw orks Inc .
1 Week P rice P erformance
42.9% 32.8% 31.6% 26.4% 25.6% 24.5% 22.0% 19.0% 17.2% 15.1% 15.1% 14.1% 13.8% 13.1% 12.2% 9.7% 8.8% 8.7% 8.5% 8.4% 8.4% 7.9% 7.7% 6.5% 6.3% 5.2% 5.2% 4.9% 4.6% 4.6% 3.8% 3.3% 2.5% 1.5% 1.3% 0.4% 0.0% -4.0% -4.5% -4.5% -4.9% -6.1% 0.0% 10.0% 20.0% 30.0% 40.0%
50.0%
-10.0%
50.0%
60.0%
Figure 6. 1-Week Price Performance Source. Capital IQ
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INDUSTRY NEWS (PARTNERSHIPS, FINANCIAL RESULTS, NEW PRODUCTS)
K ey Developments
C ompany Headline Notes
T re e.C om I nc. provided e arnings guidance for the first qua rter of 2009 . F or the qu arter, the company e xpe cts E B IT DA and net inco me (los s ) to be roughly in-line with or s lightly better tha n E B I T DA a nd net income (los s) f or the fourth qua rter of 2 008. O pen T e xt C orp. a nnou nced that internationa l medical equ ipment and s ervices provide r, B . B rau n Me ls ungen AG , will de plo y a company wide E C M s olution bas ed o n the O pen T ex t E C M S uite. The plan re pres ents a majo r expa ns io n of the co mpany 's us e o f E C M from a ro und 2,00 0 us ers currently, to all us ers globa lly when the pro ject is fu lly deploy ed in a bout three ye ars. T he k ey go al of the pro ject is to s tre amline the ma nage ment of regulate d do cu me nts acros s the entire life cycle and to me et s trict, cons tantly changing lega l requirements in ma ny different parts o f the world concurrently. B . B rau n als o e xpects to be nefit from more e ffective ex change of inf ormation throu gh colla boration as well a s efficient and contro lled a cces s to all pro ce ss -rela ted co mpa ny documents. C DC C o rporation a nnou nced today that a n af filia te o f the company ha s clos ed the purchas e o f the C ompa ny’s 3.7 5% S enior E xchangeable C onvertible Notes Due 2011 with one Note ho lde r that was announced on March 5, 200 9, f or cas h, as we ll as s igned and clos ed, today , an additiona l purchas e of the entire remaining po rtion of the holdings of N otes f rom a nother Note holder. P eter Y ip, C E O o f C DC sa id: “W ith ou r stro ng bala nce s hee t and pres ent operational pe rf ormance , we pla n to res ume purs uing s trategic and oppo rtunistic acqu is itions for expanding our s oftware platfo rm, su ch as our recently -announced C ate goric tra ns actio n, a s we ll as increas ing ou r mark et share in C hina for our MM O online ga me s bus ines s. W e remain confident of ou r glo bal bus ines s which is reinfo rced by ou r s trong pres ence in C hina. " LiveW orld Inc. repo rted u naudite d ea rnings re su lts f or the fourth qua rter and full y ea r ende d Decembe r 31, 2 008 . F or the qu arter, the co mpany reporte d ne t income of $165 ,000 , or $ 0.01 per ba s ic and $0 .00 per dilu ted s ha re on tota l revenu e of $3, 003, 000 co mpa re d to net lo ss of $58 4,00 0, o r $0.0 2 pe r bas ic a nd $ 0.02 per dilu ted share on total re venue o f $2 ,977 ,000 for the s ame period la st ye ar. T he co mpany re ported inco me bef ore tax of $11 0,00 0 compared to los s bef ore ta x of $56 5,00 0 fo r the s ame perio d las t y ear. T he company repo rted net ca sh provided by o perating activities o f $2 8,00 0 compared to negative net cas h pro vided by ope ra ting activities of $283 ,000 for the s ame perio d las t y ear. T he company reported adjus ted E B IT DA of $400 ,000 compared to ne gative adjus ted E B IT DA o f $37 0,00 0 fo r the sa me perio d las t y ear. F o r the yea r, the co mpany reporte d ne t los s of $ 1,07 8,00 0, or $ 0.03 per bas ic and $0 .03 per dilu ted share on tota l revenue of $ 11,7 61,0 00 compa re d to net los s of $2, 373, 000, or $0. 08 per bas ic and $0.0 8 pe r dilute d s hare on total revenue of $ 10,8 63,0 00 f or the sa me period las t y ear. T he company reported nega tive net cas h provide d by operating a ctivities of $55 8,00 0 compared to negative net cas h p T ree .C om, Inc. (Na s daqG M: T R E E ) T ree. C om Inc. P rovide s E a rnings G u ida nce fo r the First Q ua rte r of 2 009 O pen T ext C orp. B . B raun to De plo y C onte nt M anagement C ompany -wide (Nas da qGS : O TE X ) U s ing O pe n T ex t E C M S uite
C DC C orp. (Na s daqG S : C HIN.A)
C DC Mulls A cquis itions
L ive W orld Inc. (O T C PK : L V W D)
LiveW orld Inc. R epo rts U naudite d E arnings R es ults fo r the F ou rth Q uarte r a nd F u ll Y ear E nded December 3 1, 20 08 ; P rovides R evenue G uidance for the F irs t Qu arter of 200 9
W izzard S oftware C orpora ti on (AME X: W ZE )
W izz ard S of tware A nno unces Newe st R eleas e of A T &T Na tural V o ices T ex t to S peech
W iz z ard S oftwa re C orporation announced the availability of V e rs ion 4 .2 o f A T &T Na tural V oices T e xt-to-S peech (T T S ) for W indo ws. T he so ftware's new s treamline d architecture mak es it e as ier a nd f as ter for a pplication and web develo pers to deploy high performa nce s pee ch so lu tio ns . T his new vers ion fea tures twe nty vo ices in eight la ngua ges , including the recent addition of I talian. W izz ard continues to mak e AT & T technology ve ry cos t e ffective for a pplications develo pers and is plea se d to add this new a nd improve d W indo ws vers io n to co mplement the 200 8 releas e o f 4. 2 fo r Linux. AT & T Natural V oices is widely ack nowledge d in the indus try as the mos t na tural-s ou nding sy nthes iz ed speech s y stem in the world, and W izz ard of fers a varie ty of licensing mo dels to De ve lopers, Integrators and B us ines s C lients . B y continu ing to improve Natural V o ices , A T &T is reinforcing its res olve to provide world-clas s s peech sy nthes is to mainstre am ma rk ets through W izz ard S of tware. P hotoC hanne l N etwork s Inc. a nnou nced that it has s igned a licens e agreement with P si Digital S olu tio ns Limited out of the U nite d K ingdom. U nde r the a greement P N I ha s gra nted an exclus ive right to fu rther develop, ma rk et and s ub-licens e the I R IS S red-e ye re mo val te chnology . P NI s hall receive roy alty payments and s hall mainta in the right to u se within its pla tform. R on Ma or, the origina l inventor of the technology , will head the R &D effo rts to fu rther de ve lop and improve this te chnology . P hotoC hanne l N etwork s Inc. (T S XV : P N) signe d an agree me nt to acquire W o rk s Media, Ltd. fo r C AD 5.3 millio n on F ebruary 25, 200 9. T he purchas e price inclu des a cas h pay me nt o f C A D 2. 1 million to be pa id in 13 e qual monthly ins tallments, is s uance of 0 .75 millio n s hares in 3 equa l ins ta llments and is s uance of 0.9 millio n s hares o ver next 3 y ears if annual pe rfo rmance targe ts of W orks Me dia are met. T he trans action is s ubject to appro val by the T S X V enture E xchange. Fo rmal clo sing of the tra ns actio n is expe cted to occur upon receipt of this acce ptance of the agreement by T S X V entu re E x change. P hotoC ha nnel Networks I nc. (T S X V : P N) completed the acquis ition of W ork sM edia, L td. on M arch 11, 200 9. Nete as e.com Inc. on M arch 12 officially launched th e inde x fo r C hines e Internet s tock s, which is aimed a t ga uging the o verall performance of publicly-traded C hines e Internet co mpanies and the ir s tock s. T he index is calcu lated bas ed o n the marke t valu e of 14 publicly-traded C hines e I nterne t companies traded in Ho ng K ong and the U S , with the benchmark se ttling at 1,00 0 s tarting fro m March 10 . T he 14 co mpanies include P erfect W o rld, Alibaba, Nete as e, G iant Inte ra ctive, V is ionC hina , K ongz ho ng.com, C trip, T encent, S ina , S ouhu, S handa Netwo rk ing, T he9, 51job.com, a nd B aidu. co m. T heir bus ines se s are covering Internet se arch, online game, ne ws portal, o nline re cruitment, B 2 B , and so on. T he index is des igned to re fle ct the mo ve ment of C hina's I nterne t economy and the attitude of the capita l mark et towards the Inte rnet mark et. It can give jou rnalis ts , analy s ts , and inve stors birds ' eye view o f the Internet indus try in C hina. S handa Intera ctive E nte rtainme nt L td. a nnou nced that it will k ick o ff o pen beta tes t f or 'S uper S tar', one of its multimedia o nline role -play ing games in mid April. T he game is a comprehe ns ive mus ic z one combining s ix s ys tems s uch as s inging, friend mak ing, competition and so on.
P hotoC ha nne l Network s Inc . (T S X V: P N)
P hotoC hannel Network s S igns Lice ns e A greement with P s i Digital S olu tio ns Limited
P hotoC ha nne l Network s Inc . (T S X V: P N); W orks Me dia, L td.
P hotoC hannel Network s Inc. (T S XV : P N) completed the acqu is itio n of W ork sM edia, L td.
Netea s e.c om Inc. (Nas da qGS : NT E S )
Ne teas e Launches C hines e I nterne t S tock Index
S handa Interactive E ntertainment L td. (Nas da qGS : S N DA) NetDragon W ebS oft, Inc. (S E HK : 777)
S handa to La unch O pe n B eta T es t for 'S uper S tar'
Ne tDragon W ebso ft Inc. R eports E a rnings R es ults for the NetDragon W ebS oft Inc. a nnou nced its annual res ults for the fo urth quarter and y ear ended December 31 , 20 08. F or the quarte r, the F ou rth Q uarte r and Y ea r E nded D ecember 31, 200 8 co mpany reporte d prof it attributable to s ha re holders of R MB 73. 2 million on revenu e of R MB 13 6.5 millio n against profit a ttribu table to shareholde rs of R MB 50 .9 million on re venue o f R M B 1 36.6 million f or the third qua rter of 2008 . F or the y ear e nded December 3 1, 2 008, the co mpany reporte d prof it attributable to s ha re holders of R MB 239 .4 million or ba sic earnings per s hare o f R MB 44 .49 ce nts on reve nue of R MB 596 .0 million. Ne tDragon S eek s Acqu is itions NetDragon W ebs oft Inc. a nnou nced its annual res ults for the y ear e nded 31 December 20 08. D uring the ye ar under review, re venue o f the G rou p amou nted to approx imate ly R MB 59 6.0 millio n, while revenu e for the f ourth quarter o f 20 08 wa s a pprox imate ly R MB 13 6.5 millio n, ma intaining at a s tea dy level from approxima tely R MB 136 .6 million for the third quarter of 200 8. G ros s profit was a pprox imate ly R MB 52 7.9 millio n fo r the full y ear a nd R M B 118. 1 million for the fou rth qu arter of 2008 . Mr. Liu Dejia n, C hairman and E x ecutive Directo r o f Ne tDragon, sa id, “T o fu rther s trengthen our pres ence else where, we will co ntinue to e nhance our o vers eas dis tribution cha nnels and identify s trategic partne rs hip o pportu nities in o ve rs ea s mark ets in the fu ture. G o ing forward, we will continu e to lay the fo unda tio ns for long-term s ucces s and crea te value in a challe nging bus ine ss e nvironment. W ith a range of new a nd f un o nline games in the pipeline, I am confident the G ro up will co ntinue to mak e progres s and achieve s us tainable gro wth in the fu ture."
NetDragon W ebS oft, Inc. (S E HK : 777)
Page 9
S NAP Interactive , Inc . (O TC B B : S T V I) T heS treet.com , Inc. (Nas da qGM: T S C M)
S NA P I nteractive Annou nces C hange o f Hea d Q uarte rs
S NA P Interactive, Inc. annou nced that in a n ef fort to cons olidate operations and enable pending growth, it has s igned a three-ye ar le as e on a ne w off ice location in New Y ork C ity. T he leas e is ef fective April 1 , 20 09. T he new S NAP he adqu arters is a 3,4 00 s qu are foo t s pace in Midtown Manhatta n, o ne block from M adiso n S quare G a rden. T heS treet. co m Inc. announce d that T homa s J . C larke , J r. , its C hief E xe cu tive O f ficer and a Directo r f or the pas t ten y ea rs , is leaving the co mpany . T he company als o announce d that M r. O tte, who has s erved as a Director o f the company s ince 200 1 and ha s previou sly se rved as the C ha irma n of the company 's A udit C ommittee, will a ss ume the role o f interim C hie f E xecutive O fficer of the co mpany . Mr. Otte will re ma in as interim C E O until a perma nent replaceme nt is named. Mr. O tte is a fo unding partne r of M onte fio re P a rtners , a venture capita l inves tment fund mana gement firm. G iga Media L td. provided earnings guidance f or the fou rth qu arter of 2008 . T he co mpany confirme d fo urth-quarte r 2008 net earnings we re inline with ma rk et expectations . S pectrumD NA I nc. announce d a stra tegic partnership with Mark etingP rofs .com, and their plans to launch an exclus ive Ma rk eting Addictiona ry , a ttracting more than 300, 000 mark eting profes s io nals to the highly engaging word play engine . S pectrumDNA 's produ ct, T he Addictiona ry , is a highly flexible a nd progra mmable engine of e ngageme nt (or E ngine t) with cons tantly evolving features and functions that ca n be eas ily conf igu re d and re-branded-for us e by any aff inity grou p, and by a ny mark ete r loo king to capture-and-nurture their community . T he A ddictionary is des igned to incre as e traf fic, e xte nd a udience e ngagement and deliver lo ng-term R O I through earne d media. Mark etingP rofs is an L A-bas ed media property offering a ctio nable k no w-ho w throu gh a range of o n-and offline ef forts to help bus ine ss es ma rk et the ir produ cts and se rvice s both smarte r a nd bette r.
T he S tree t.com Inc. Announce s Mana gement C hanges
G igaMedia L td. (Nas daqG S : GIGM) G igaMe dia Ltd. P ro vides E arnings G uidance for the F ou rth Q uarte r of 20 08 S pectrumDN A, Inc. (O T C B B : S PX A) S pectrumDNA Inc. P a rtners with Mark etingP rofs .com to La unch M ark eting A ddictio nary
Figure 7. Key Developments Source. Capital IQ
VALUATION MMOG companies lead market-cap charts: Eight companies in our Web 2.0 universe top US$1 billion in market capitalization (Figure 8). Sixty-seven of the 89 companies have market caps under US$100 million, with 29 under $10 million. Online gaming companies dominate the top of the list with four of the top five by market cap.
Page 10
Market C ap (US D m)
Tencent Holdings Ltd. Neteas e.c om Inc. S handa Interactive Entertainment Ltd. IA C/InterA ctiveCorp. G iant Interac tive G roup, Inc. Open Tex t Corp. Gree, Inc. Modern Times G roup Mtg A B Perf ect World Co. , Ltd. Mix i, Inc. K ings oft Co. Ltd. Chines e Gamer International The9 L imited United Online Inc. G igaMedia Ltd. NEOWIZ Games Corporation NetDra gon WebS of t, Inc. S hutterf ly , Inc. S K Communica tions Co., Ltd. XING A G Gamania Digital Entertainment Co. , Ltd. G ungHo Online Entertainment, Inc. CDC Corp. DA DA S pA G ameOn Co Ltd. DigitalTow n, Inc. Y edangOnline Corp. Moggle, Inc Openw ave S y s tems Inc. A ctoz S oft Co. , Ltd. TheS treet.c om, Inc. NeXplore Corporation HanbitS of t, Inc. S park Netw orks , Inc. B roadWebA s ia Inc. Tree.Com, Inc. PhotoChannel Netw orks Inc. S ites earch Corporation K a boos e Inc. J umpTV Inc. OA O R B C Inf ormation S y s tems GeoS entric Oy j Dolphin Digital Media, Inc. Ngi Group Inc. B ey ond Commerce, Inc. Northga te Technologies Limited Webz en Inc. A Q Interactive, Inc. Wiz z ard S of tw are Corporation DXN Holdings B hd G ravity Co., Ltd LookS mart, Ltd. Eolith Co. Ltd. Frogs ter Interactive Pictures A G Idea Edge, Inc. Fluid Mus ic Canada, Inc. J umbuc k Entertainment Pty Ltd. Quepas a Corp. Ex tens ions , Inc. S NA P Interactive, Inc. Worlds . com Inc. Lingo Media Corporation S pectrumDNA , Inc. Magnitude Inf ormation S y s tems Inc. CornerWorld Corporation Y nk K orea Inc. LiveWorld Inc. A cc eleriz e New Media, Inc. B etaw ave Corporation UOMO Media, Inc IA S Energy , Inc. V OIS , Inc. is eemedia Inc. MOK O.mobi Limited B right Things plc Wooz y Fly , Inc. Wy nds torm Corporation The Parent Company Unis erve Communications Corp. Z ipL ocal Inc. Financia l Media Group, Inc. B igs tring Corp. DigitalPos t Interac tive, Inc. Total S port Online A S A s s ociated Media Holdings Inc. China G atew ay Corporation S ocial Media V enures , Inc. Dibz International, Inc. S NM G lobal Holdings 0 2059.2 2429.1 2774.8
376.7 373.0 357.5 329.4 308.0 260.0 231. 8 224.6 221.1 190.4 130.6 129.3 98.2 97. 6 81.7 81.5 74.6 72.6 68.3 66.6 59.5 52.4 50.5 48.1 43.3 42.5 40.9 40.3 38.6 35.8 33.3 24.3 23.8 23.4 23.3 22.7 19.2 18.5 18.1 17.8 17.5 17.4 17.2 17.0 16.9 16.5 14.8 14.3 14.2 10.1 10.0 9.1 8.8 7.9 6.6 6.2 6.2 6.2 5.3 5.1 4.2 3.3 3.2 3.2 2.9 2.6 2.2 1.3 1.0 0.9 0.9 0.7 0.3 0.2 0.1 0.0 0.0 0.0 0.0 500
672.1 526. 5
1194.2 1009.8
1661.1 1656.1
1,000
1,500
2, 000
2,500
3,000
3,500
4, 000
Figure 8. Market Cap Ranking Source. Capital IQ
TEV/Revenue (LTM) averages 3.9x: The overall average TEV/Revenue (LTM) multiple for our group is 3.9x – up from 3.8x last week (Figure 14). However, this is skewed by Gree (3633-TSE) at 37.8x and Bigstring (BSGC-OTCBB) at 28.9x. The median is only 1.0x. Note that we exclude multiples greater than 50x. Thirty-two of the companies have multiples under 1.5x.
Page 11
T E V/L T M R evenue (x)
40. 0 35. 0 30. 0 25. 0 20. 0 15. 0 10. 0 5. 0 0. 0 A vera ge, 3.9 0. 80.80.9 0.00.00.00.10. 10.20.20.20.20.3 0.40. 40.50.5 0.60.60.60.60. 6 0.70.70.8 1.01.01.01.01.01.1 1.2 2. 4 2.52.5 2.7 1.51.5 2.0 2.3 3.9 3.9 4. 6 2.82.9 3.13. 1 3.33.3 3.53.6 15.2 13.1 12. 11.4 0 8.0 8.5 28.9 24.1 37.8
Figure 9. TEV/Revenue Ranking Source. Capital IQ
TEV/Revenue (LTM) by country/exchange: W e have also calculated multiples based on where the companies are listed or domiciled. Figure 10 shows the average TEV/Revenue multiples by stock exchange. The OTCBB has the largest number of companies (22), trading at an average multiple of 9.0x (up from 8.4x from last week). On a geographic basis, the United States has the most companies (40), trading at an average of 4.5x revenue (no change from last week) (Figure 11). Ten of the companies are Canadian (average 2.8x revenue).
(x)
6.0 4.0 2.0 0.0 TSE AIM
(x)
OTCNO
OTCBB
OTCPK
NasdaqGM
GTSM
NasdaqGS
SEHK
HLSE
KOSE
OSE
OM
CM
AMEX
XTRA
TSXV
KLSE
TSX
ASX
Germany
United Kingdom
Australia
# Companies
5
1 22 3
2
1
1
2
9
2
3
2
5
7
1
1 11 1 #N/A 5
# Companies
1
6
8
1
40
1
3
2
10
2
9
1
1
#N/A
Malaysia
Japan
China
United States
Finland
Canada
Norway
Taiwan
South Korea
Sweden
Figures 10 & 11. TEV/Revenue Ranking (Exchange, Country) Source. Capital IQ
TEV/EBITDA (LTM) averages 8.8x: The average multiple for the 30 companies with positive EBITDA (and multiples under 100x) is 8.8x LTM EBITDA (up from 8.1x last week), led by SNAP Interactive’s (STVI-OTCBB) 38.9x multiple (Figure 12). Eighteen of the companies have EBITDA multiples under 7x. The median multiple is 5.9x (vs. 5.1x last week).
Hong Kong 1
Italy
C hina G ateway C orporation F inanc ial Media G roup, Inc. O AO R B C Information S y s tems S ocial Media V enures , Inc. Unis erv e C ommunic ations C orp. Northgate T echnologies Limited T ree.C om, Inc. IAC /InterActiv eC orp. T he P arent C ompany G ameO n C o Ltd. C DC C orp. Liv eWorld Inc. Y nk K orea Inc. DX N H oldings B hd is eemedia Inc. Z ipLocal Inc. N etDragon WebS oft, Inc. DADA S pA S hutterfly , Inc. F luid Mus ic C ana da, Inc. HanbitS oft, Inc. K aboos e Inc. Actoz S oft C o., L td. S park Network s , Inc. J umbuck E ntertainment P ty Ltd. U nited O nline Inc. Modern T imes G roup Mtg AB G amania Digital E ntertainment E olith C o. L td. G ungHo O nline E ntertainment, S NM G lobal H oldings G igaMedia L td. S K C ommunications C o., Ltd. Y eda ngO nline C orp. NE O WIZ G a mes C orporation O pen T ex t C orp. MO K O . mobi Limited B etawa ve C orporation P hotoC hannel N etwork s Inc. K ings oft C o. L td. DigitalP os t Interactive, Inc. Wiz z ard S oftwa re C orporation Lingo Media C orpora tion F rogs ter Interac tive P ictures Acc eleriz e N ew Media, Inc. XING AG Mix i, Inc. G eoS entric O y j J umpT V Inc. S NAP Interactive, Inc. T otal S port O nline AS As s ociated Media H oldings Inc. C hines e G amer International U O MO Media , Inc B right T hings plc C ornerWorld C orpora tion T encent H oldings Ltd. B ey ond C ommerce, Inc. B igs tring C orp. G ree, Inc.
Average TEV/LTM Revenue - By Exchange
16.0 14.0 12.0 10.0 8.0 13.9 12.0 9.0 6.2 4.7 4.6 3.6 3.2 2.0 1.9 1.8 1.6 1.4 1.1 1.0 1.0 0.9 0.6 0.5 0.2
14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0
Average TEV/LTM Revenue - By Country
12.0
10.7 6.2 4.6 4.5 3.6 3.6 3.2
2.8 1.6 1.1 1.0 0.6 0.5 0.4
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T E V/L T M E B IT DA (x)
45. 0 40. 0 35. 0 30. 0 25. 0 20. 0 15. 0 10. 0 5. 0 0. 0 0. 0 F inanc ial Media G roup, Inc . 0.1 O AO R B C Information S y s tems A verage, 8. 8 3. 7 3.9 4. 0 4. 1 4. 5 4. 8 4. 8 5. 0 5.8 6. 0 6. 8 6. 9 7. 5 8. 0 8.2 8. 5 9. 2 9. 3 10. 2 16. 3 18.0 30. 7 31. 3 38. 9
1. 0 Northgate T ec hnologies L imited
1. 2 G ameO n C o L td.
1. 3 NetDragon WebS oft, Inc .
2. 4 J umbuck E ntertainment P ty Ltd.
G amania Digital E ntertainment C o. , Ltd.
G ungH o O nline E ntertainment, Inc .
NE O WIZ G ames C orporation
C hines e G amer International
U nis erve C ommunic ations C orp.
DXN Holdings B hd
C DC C orp.
S K C ommunic ations C o. , L td.
Modern T imes G roup Mtg AB
U nited O nline Inc .
O pen T ex t C orp.
Figure 12. TEV/EBITDA Ranking Source. Capital IQ
TEV/EBITDA (LTM) by country/exchange: Figure 13 shows the average TEV/EBITDA multiples by stock exchange. The OTCBB has the largest number of companies (22), trading at an average multiple of 19.5x, while companies on the TSXV have the highest multiples (31.3x). On a geographic basis, the United States has the most companies (40), trading at an average of 9.4x EBITDA (Figure 14). Ten of the companies are Canadian (average 16.9x EBITDA).
Average TEV/LTM EBITDA - By Exchange
35.0 31.3 30.0 25.0 (x) 20.0 15.0 10.0 5.0 OTCBB GTSM 0.0 TSXV SEHK 19.5 13.3 11.9 18.0 16.0 14.0 12.0 (x) 10.0 8.0 6.0 4.0 2.0 0.0 Germany United States South Korea Japan China Hong Kong Malaysia Canada Australia 2 Taiwan Sweden India 1 Italy 10.2 8.8 8.5 6.8 6.0 6.0 5.3 13.3 9.6 9.4 8.8
Average TEV/LTM EBITDA - By Country
16.9
8.5
8.2 6.0 5.8 4.0 3.7 2.4 1.0
4.0 3.9 3.7 2.4 CM AMEX KLSE ASX
1.0 0.1 RTS BSE
KOSE
OSE
NasdaqGS
# Companies
5
22
3
2
3
7
XTRA
TSX
2
1
11
1
TSE
OM
5
1
2 #N/A 2
1 #N/A # Companies
10
8
3
40
9
2
1
1
6
1
#N/A
Figures 13 & 14. TEV/EBITDA Ranking (Exchange, Country) Source. Capital IQ
P/E (LTM) averages 15.1x: The average multiple for the 31 companies with positive earnings (and multiples under 100x) is 15.1x LTM EPS (up from 13.8x last week), led again by TheStreet.com (TSCM-NASDAQ) 62.8x multiple (Figure 15). Seventeen of the companies have P/E multiples under 10x. The median is just 9.1x.
S NAP Interac tive, Inc .
G igaMedia L td.
Mix i, Inc .
T enc ent Holdings L td.
S park Network s , Inc .
IAC /InterAc tiveC orp.
XING AG
Y edangO nline C orp.
S hutterfly , Inc.
Actoz S oft C o. , L td.
K ings oft C o. L td.
K aboos e Inc.
DADA S pA
Page 13
P /E L T M (x)
70.0 62.8 60.0 50.5 50.0 41.3 40.0 30.0 22.9 20.0 18.6 A verage, 15.1 5.9 6.6 6.9 7.2 8.3 9.1 9.1 11.1 11.6 13.4 15.2 15.3 15.4 33.8 25.3 56.1
10.0 1.1 0.0 T he9 Limited P erfect World C o., Ltd. 1.2 1.5 Northgate T echnologies Limited 1.6 G iant Interactive G roup, Inc. 1.8 Neteas e.com Inc. 2.0 S handa Interactive E ntertainment Ltd. 2.5 Look S mart, Ltd. 3.0 Modern T imes G roup Mtg AB 3.5 DXN H oldings B hd
3.6
J umbuck E ntertainment P ty Ltd.
G amania Digital E ntertainment C o., Ltd.
NE O W IZ G ames C orporation
C hines e G amer International
G ameO n C o Ltd.
O pen T ex t C orp.
NetDragon W ebS oft, Inc.
Figure 15. P/E Ranking Source. Capital IQ
P/E (LTM) by country/exchange: Figure 16 shows the average P/E multiples by stock exchange. The OTCBB has the largest number of companies (22), trading at an average multiple of 29.9x. On a geographic basis, the United States has the most companies (40), trading at an average of 28.9x earnings (Figure 17). Ten of the companies are Canadian (average 33.8x EPS).
Average P/E - By Exchange
35.0 30.0 25.0 (x) 20.0 15.0 10.0 5.0 OTCBB NasdaqGM GTSM 0.0 NasdaqGS TSE KOSE SEHK CM AMEX XTRA ASX 29.9 19.7 19.0 18.6 32.7
40.0 35.0 30.0 25.0 (x)
14.4 13.5 12.6 11.6
Average P/E - By Country
33.8
28.9 18.6 15.7 13.5 12.6 8.3 7.2 5.9 3.5
20.0 15.0
7.2
5.9
3.5 KLSE
3.0 OM
1.6 NYSE
10.0 5.0 0.0 Germany United States Canada Japan
S NAP Interactive, Inc.
Malaysia #N/A
T encent H oldings Ltd.
S park Network s , Inc.
IAC /InterActiveC orp.
Y edangO nline C orp.
Actoz S oft C o., Ltd.
China
South Korea
Australia
Taiwan
Italy
# Companies
5
22
3
2
2
11
5
7
2
2
1
#N/A
1
1
# Companies
10
40
2
3
6
9
8
2
1
Figures 16 & 17. P/E Ranking (Exchange, Country) Source. Capital IQ
Sweden 1
T heS treet.com, Inc.
3.0
Worlds .com Inc.
Ngi G roup Inc.
G igaMedia Ltd.
K ings oft C o. Ltd.
XING AG
Mix i, Inc.
S hutterfly , Inc.
DADA S pA
Page 14
UPCOMING EVENTS
Upc oming E vents
E vent
T he G artner P ortals , C ontent & C ollaboration S um mit T he B o ld and the B logging W eb 2. 0 E xpo Me sh 200 9
Date
Marc h 1 6-18 Marc h 2 4 Marc h 3 1-April 3 April 7-8
L ocation
O rlando T oronto S a n F rancisc o T oronto
Webs ite
http: //www.ga rtnerinfo.c om/tr/g/pc c 6_04 http: //prof ectio. c om/events /power-bre ak fas t-s emina rs /th e-bold-and-th e-blo gging http: //www.web2ex po. c om /s f% 2 0rel= www. me shco nference . co m
Figure 18. Upcoming Events Source. Company reports
E arnings C alendar
C ompany
G iga Med ia Ltd. ( Nas da qG S : G IG M)
Figure 19. Earnings Calendar Source. Company reports
Date & Time
T ues day , M a rch 31, 200 9 8: 00 A M ( E DT )
Quarter
Q4 200 8
C onf C all Deta ils
N /A
Page 15
C omparable C ompany Analys is > W eb 2.0
P ric e P erforma nce
C ompany Name Acce leri ze N ew Medi a, I nc. Actoz S oft C o. , Ltd. AQ Inte ractive, Inc. As s ociated Me dia Holdings I nc. Bi gs tring C orp. Be ta wave C orporation Be yond C omme rce, Inc. Br ight T hings plc Br oadW ebA s ia Inc. C DC C orp. C hina G ateway C orpora tion C hines e G amer International C ornerW orld C orporation DAD A S pA DXN Holdings Bhd Dibz International, Inc. Digita lP os t I nteractive, Inc. Digita lT own, I nc. Dolphin Digita l Me dia , Inc. E olith C o. Ltd. E xtensions, Inc. F ina ncia l Me dia Group, I nc. F luid Mus ic C anada , Inc. F rogs te r Inte ractive P icture s A G Ga mania Digital E nterta inme nt C o. , L td. Ga meO n C o L td. GeoS entric O yj Giant Inte ractive G roup, Inc. GigaMe dia L td. Gravity C o., Ltd Gree, Inc. GungHo Online E ntertainme nt, Inc. HanbitS oft, Inc. IA C /Inte rA ctive C orp. IA S E ne rgy, Inc. IdeaE dge, Inc. is ee media Inc. J umbuck E ntertainme nt P ty Ltd. J umpT V Inc. K a boos e Inc. K i ngs oft C o. Ltd. Lingo Me dia C orpora tion Live World Inc. LookS mart, Ltd. Magnitude Informa ti on S ys tems I nc. Mixi, Inc. Mode rn T imes Group Mtg A B Moggle, Inc MOK O. mobi L imited NE O W IZ G ame s C orpora tion NetDra gon We bS oft, Inc. Netea s e. com Inc. NeXplore C or por ation Ngi G roup Inc. Northgate T e chnologies L imited Open T e xt C orp. Openwa ve S ys tems I nc. Pe rfect W orld C o., Ltd. PhotoC hannel Ne tworks Inc. Quepas a C orp. OA O R B C Informa ti on S ys tems S handa I ntera ctive E nte rtainment L td. S hutterfly, Inc. S K C ommunications C o. , Ltd. S NA P Inter active, Inc. S NM G lobal Holdings S ocial Me dia V enures , Inc. S i te s ear ch C orpora tion S park Ne tworks , Inc. S pectrumDNA, Inc. T encent Holdings Ltd. T he P ar ent C ompany T he 9 Limited T he S tre et.com, I nc. T otal S port O nl ine A S T ree . C om, Inc. Unis e rve C ommunications C or p. Unite d Online Inc. UOMO Medi a, I nc VO IS , Inc. W ebzen Inc. W izz a rd S oftwa re C orporation W oozyF ly, Inc. W orlds .com Inc. W ynds torm C orporation XI NG A G Ye dangO nline C orp. Ynk K or ea Inc. ZipL ocal Inc. High Low Average Medi an C urrenc y US D KRW J PY US D US D US D US D G BP US D US D US D TW D US D E UR MYR US D US D US D US D KRW US D US D CAD E UR TW D J PY E UR US D US D US D J PY J PY KRW US D US D US D CAD A UD CAD CAD HK D CAD US D US D US D J PY S EK US D A UD KRW HK D US D US D J PY INR US D US D US D CAD US D US D US D US D KRW US D US D US D US D US D US D HK D US D US D US D NO K US D CAD US D US D US D US D US D US D US D US D E UR KRW KRW CAD Tic ker AC L Z A0 527 90 383 8 AS MH BS GC BW A V BY OC AIM:B G T BW B A C HIN. A C GW Y GT S M: 308 3 CW R L C M:DA DXN DIB Z DGL P DGT W DPDM A0 410 60 E XT I F NGP T S X :F MN FR G 618 0 381 2 GE O1 V GA GIGM GR V Y T S E : 363 2 376 5 A0 470 80 IA C I IA S C . A OT C B B :I DA E IE E AS X: J MB T S X :J T V T S X :K AB 388 8 T S X V: LM LV WD LO OK MAG Y 212 1 MT G B MMOG MK B A0 956 60 777 NT E S NXP C 249 7 590 05 7 OT E X OP W V PW R D T S X V: PN QP S A R BC I S NDA SFLY A0 662 70 STV I S NMN S MV I STP C LO V S P XA 700 K IDS . Q NC T Y TSCM T OS O TR EE T S X V: US S UNT D UOMO VO IS WZE N WZE WZY F WD DD WY ND O1 BC A0 527 70 A0 237 70 T S X V: ZIP E xchange O T C BB K OS E TS E O T C PK O T C BB O T C BB O T C BB A IM O T C PK Na sdaqGS O T C BB GTSM O T C BB CM K LS E O T C PK O T C BB O T C BB O T C BB K OS E O T C PK O T C BB TS X XT R A GTSM TS E HL S E NY S E Na sdaqGS Na sdaqGM TS E OSE K OS E Na sdaqGS O T C BB O T C BB T S XV ASX TS X TS X S E HK T S XV O T C PK Na sdaqGM O T C BB TS E OM O T C BB ASX K OS E S E HK Na sdaqGS O T C PK TS E B SE Na sdaqGS Na sdaqGS Na sdaqGS T S XV Na sdaqC M R TS Na sdaqGS Na sdaqGS K OS E O T C BB O T C PK O T C PK O T C BB A ME X O T C BB S E HK O T C PK Na sdaqGS Na sdaqGM O T C NO Na sdaqGM T S XV Na sdaqGS O T C BB O T C BB Na sdaqGM A ME X O T C BB O T C BB O T C BB XT R A K OS E K OS E T S XV US D Market C ap ($m) 6. 2 6 6. 6 1 8. 5 0. 1 0. 7 5. 3 2 3. 3 2. 9 4 3. 3 9 8. 2 0. 0 373 . 0 6. 6 9 7. 6 1 7. 8 0. 0 0. 3 8 1. 5 2 3. 8 1 7. 2 1 4. 2 0. 9 1 6. 5 1 7. 0 130 . 6 8 1. 7 2 4. 3 1, 66 1. 1 308 . 0 1 7. 5 1, 19 4. 2 129 . 3 5 0. 5 2, 05 9. 2 4. 2 1 6. 9 3. 2 1 4. 8 3 5. 8 3 8. 6 376 . 7 9. 1 6. 2 1 7. 4 7. 9 526 . 5 1, 00 9. 8 7 2. 6 3. 2 260 . 0 231 . 8 2, 77 4. 8 5 2. 4 2 3. 4 2 2. 7 1, 65 6. 1 6 8. 3 672 . 1 4 0. 9 1 4. 3 3 3. 3 2, 42 9. 1 224 . 6 221 . 1 1 0. 1 0. 0 0. 0 4 0. 3 4 8. 1 8. 8 12 ,6 13 .5 1. 3 357 . 5 5 9. 5 0. 2 4 2. 5 1. 0 329 . 4 5. 1 3. 3 1 9. 2 1 8. 1 2. 6 1 0. 0 2. 2 190 . 4 7 4. 6 6. 2 0. 9 C urrent Price 0 .2 3 10 ,8 50 .0 0 33 ,4 00 .0 0 0 .0 0 0 .0 1 0 .1 8 0 .5 7 0 .0 2 0 .5 1 0 .9 1 0 .0 0 1 51 .0 0 0 .1 4 4 .6 3 0 .2 8 0 .0 0 0 .0 0 3 .0 0 0 .4 9 5 30 .0 0 0 .1 5 0 .0 1 0 .4 0 5 .5 5 29 .6 0 83 ,0 00 .0 0 0 .0 3 7 .3 5 5 .7 0 0 .6 3 5 ,2 60 .0 0 1 11 ,1 00 .0 0 3 ,3 10 .0 0 14 .6 1 0 .0 6 0 .4 0 0 .0 8 0 .4 5 0 .4 0 0 .3 5 2 .7 2 0 .9 0 0 .2 0 1 .0 2 0 .0 2 3 38 ,0 00 .0 0 1 29 .5 0 2 .0 0 0 .0 6 38 ,8 50 .0 0 3 .4 0 22 .5 5 0 .9 4 18 ,6 40 .0 0 33 .3 5 31 .9 1 0 .8 2 12 .7 4 1 .5 5 1 .1 3 0 .2 4 35 .0 1 8 .9 3 7 ,7 20 .0 0 0 .9 5 0 .0 0 1 .2 0 5 .0 0 2 .3 4 0 .1 8 54 .4 0 0 .0 5 13 .3 3 1 .9 5 0 .0 4 4 .2 6 0 .0 5 4 .0 1 0 .0 6 0 .4 0 1 .6 2 0 .4 0 0 .1 5 0 .1 9 0 .1 2 28 .1 5 6 ,8 50 .0 0 3 ,6 40 .0 0 0 .0 2 1 Wk 4 .5 % 3 .3 % 6 .5 % 0 .0 % 1 8. 6% 2 0. 0% 1 8. 8% -2. 0% -32 . 0% 2 1. 4% -33 . 3% 4 .9 % -6. 7% -4. 5% -15 . 2% -90 . 0% -33 . 3% 1 9. 0% 2 2. 5% -4. 5% -25 . 0% -6. 7% -7. 0% 5 0. 0% 1 7. 2% 2 .5 % -25 . 0% 4 .6 % 3 1. 6% -1. 6% 1 2. 2% -4. 9% 4 .6 % 8 .5 % -14 . 3% 0 .0 % 0 .0 % 0 .0 % 2 .6 % -10 . 3% 3 .8 % 3 .4 % 40 0. 0% 5 .2 % -5. 3% 9 .7 % 1 3. 1% 0 .0 % 0 .0 % 6 .3 % 1 .5 % 7 .9 % -1. 1% 1 5. 1% 8 .8 % 8 .4 % 1 3. 9% 2 2. 0% -6. 1% 2 5. 6% -4. 0% 1 3. 8% 2 4. 5% 2 6. 4% 0 .0 % 0 .0 % -4. 0% NM 0 .4 % -10 . 0% 1 5. 1% 6 .0 % 4 2. 9% 7 .7 % 0 .0 % 8 .4 % 0 .0 % 1 .3 % 0 .0 % -46 . 7% 3 2. 8% -4. 8% 0 .0 % 3 5. 7% 0 .0 % 1 4. 1% 8 .7 % 5 .2 % 20 0. 0% 40 0. 0% -90 . 0% 9.8% 3 .4 % 1 Mth -3 4. 3% -1 4. 6% 2 .1 % -7 2. 0% -1 2. 5% -1 0. 0% -1 8. 6% -1 9. 8% -6 6. 0% 3 .4 % -3 3. 3% 29. 1% -6 5. 9% -2 6. 1% -2 2. 2% -9 0. 0% -7 1. 4% 10 0. 0% -7. 5% -8. 6% -2 5. 0% -6. 7% -3 3. 3% 26. 4% 24. 6% -2 5. 9% 0 .0 % 18. 2% -2 2. 8% -1 1. 3% -5. 2% 12. 0% -1 4. 5% -2. 9% 14 0. 0% -9. 1% -3 3. 3% 12. 5% -9. 1% -7. 9% -8. 1% 5 .9 % 40 0. 0% -2 5. 5% -2 8. 0% -2 2. 5% -5. 3% 0 .0 % 50. 0% 23. 9% 15. 6% 17. 1% 19. 0% -3 1. 4% -2 8. 4% -1 0. 2% -7. 9% -1 0. 9% -1 2. 4% -2 1. 0% -2 0. 0% 14. 6% 5 .2 % -0. 8% -4. 0% -6 6. 7% -7. 0% NM -8. 2% 80. 0% 11. 7% -9 1. 7% -8. 0% -2 5. 0% 0 .0 % 9 .0 % -3 7. 5% -2 2. 7% -2 5. 0% -4 6. 7% 8 .0 % -4 5. 2% 0 .0 % -5. 0% 0 .0 % -4. 4% -3. 4% -1 8. 8% -2 5. 0% 40 0. 0% -9 1. 7% -4.9% -8. 4% 3 Mth - 34. 3 % 4. 8% 9. 5% - 53. 3 % - 20. 0 % 12 . 5% - 36. 7 % 72 . 4% - 49. 5 % - 15. 7 % - 80. 0 % 72 . 4% - 68. 9 % - 33. 3 % - 26. 3 % - 90. 0 % - 80. 0 % 9. 1% - 38. 8 % -7 .8 % 1 85 .7 % - 76. 7 % 81 . 8% 1. 3% 94 . 1% - 34. 1 % - 25. 0 % 23 . 3% -3 .9 % 8. 6% NM 13 . 7% -7 .8 % - 12. 6 % 1 00 .0 % - 55. 6 % 77 . 8% 2. 3% 29 . 0% 34 . 6% 6. 7% - 14. 3 % 3 00 .0 % - 33. 8 % - 10. 0 % - 43. 9 % - 15. 9 % 33 . 3% 20 . 0% 99 . 7% 15 . 3% 8. 3% - 10. 5 % - 65. 3 % - 39. 6 % 13 . 1% 26 . 2% - 21. 0 % 13 . 1% - 37. 6 % - 60. 0 % 17 . 2% 21 . 8% 36 . 2% 35 . 7% - 97. 1 % 11 . 1% NM - 11. 7 % - 14. 3 % 12 . 2% - 92. 9 % 6. 4% - 42. 3 % - 20. 0 % 1 00 .9 % 66 . 7% - 31. 5 % - 45. 5 % - 46. 7 % 1 00 .0 % - 57. 0 % NM - 13. 6 % 0. 0% 9. 3% 1. 2% - 30. 9 % 50 . 0% 3 00 .0 % - 97. 1 % 1.5% -5 .8 % 6 Mth -5 8. 2% 19 .2 % -6 0. 4% -9 3. 6% -7 4. 1% -3 5. 7% -7 7. 2% 0. 0% -6 0. 8% -5 5. 8% -9 4. 4% 1 52. 9 % -7 7. 0% -5 3. 5% -2 6. 3% -9 8. 0% -9 2. 7% -2 5. 0% -3 1. 0% -1 4. 5% 50 .0 % -9 6. 5% -7 4. 2% -1 .9 % 88 .5 % -4 4. 7% -5 0. 0% -0 .1 % -2 6. 5% -4 9. 6% NM -4 6. 3% -8 .1 % -1 2. 6% -6 8. 4% -8 4. 3% -5 1. 5% -1 0. 0% -5 0. 6% -5 3. 3% 18 .3 % -5 1. 6% -2 0. 0% -6 1. 2% -9 .1 % -5 1. 6% -5 0. 3% NM 76 .5 % 87 .7 % -2 4. 6% 3. 0% 95 .8 % -8 2. 0% -8 6. 8% 10 .6 % -2 8. 7% -4 3. 9% -3 6. 0% -6 4. 4% -9 5. 2% 36 .0 % 0. 1% -3 2. 6% 6. 7% -9 9. 9% 3 80. 0 % NM -4 4. 3% -6 7. 3% 0. 7% -9 7. 0% -1 7. 3% -6 7. 3% -2 0. 0% -4 5. 0% -7 2. 2% -5 8. 7% -8 0. 0% -8 1. 3% 1. 3% -6 3. 6% NM -4 5. 7% -4 5. 5% -3 .6 % -1 1. 3% -6 4. 8% -8 1. 3% 3 80. 0 % -9 9. 9% -29.8% -4 5. 5% 1 Yr -68. 1% 2 8. 7% -85. 6% 2 7. 3% -92. 6% -56. 1% -45. 7% -45. 5% -80. 4% -74. 4% -99. 7% 4 6. 6% -88. 8% -59. 0% -41. 1% -98. 0% -98. 4% 2 0. 0% NM -57. 3% 0 .0 % -91. 3% NM 2 0. 9% 3 .1 % -20. 2% -57. 1% -24. 2% -60. 4% -59. 4% NM -30. 1% -22. 2% -65. 4% -76. 0% -63. 0% -77. 1% -35. 7% -35. 5% -73. 1% 5 2. 0% -38. 8% -4. 8% -68. 1% -14. 3% -60. 6% -68. 0% NM 7 1. 4% 5 .9 % -62. 2% 3 0. 8% NM -87. 9% -90. 3% 1 0. 2% -59. 2% -42. 0% -52. 3% -54. 1% -97. 6% 3 1. 2% -43. 0% -49. 5% 8 .0 % -1 00 .0 % NM NM -43. 2% NM 3 9. 1% -99. 1% -23. 7% -75. 6% -33. 3% NM -87. 7% -63. 6% -90. 3% NM -41. 9% -81. 4% NM -20. 8% NM -31. 3% -27. 9% -80. 8% -92. 3% 7 1. 4% -1 00 .0 % -43.8% -54. 1% 52 W eek -70 . 5% -23 . 0% -86 . 5% -97 . 2% -93 . 7% -60 . 0% -82 . 7% -64 . 7% -83 . 0% -78 . 3% -99 . 7% -2. 6% -88 . 8% -71 . 4% -50 . 0% -98 . 0% -98 . 8% -50 . 8% -56 . 6% -62 . 5% -85 . 1% -98 . 6% -80 . 4% -27 . 5% -19 . 9% -49 . 2% -57 . 1% -57 . 3% -71 . 3% -68 . 5% -16 . 5% -74 . 5% -52 . 8% -71 . 1% -82 . 9% -85 . 9% -81 . 8% -35 . 7% -68 . 8% -78 . 4% -36 . 9% -59 . 1% -73 . 3% -78 . 8% -40 . 0% -69 . 3% -71 . 5% 0 .0 % -15 . 5% -3. 2% -75 . 0% -17 . 0% -35 . 2% -89 . 2% -92 . 9% -18 . 4% -71 . 3% -62 . 0% -62 . 7% -67 . 3% -97 . 6% -8. 4% -50 . 3% -60 . 8% -13 . 6% -1 00 .0 % -76 . 0% 0 .0 % -49 . 8% -70 . 0% -24 . 5% -99 . 2% -53 . 2% -79 . 5% -60 . 0% -61 . 6% -88 . 9% -67 . 9% -92 . 5% -92 . 9% -63 . 6% -83 . 4% -96 . 3% -57 . 8% -85 . 9% -39 . 6% -45 . 4% -81 . 7% -92 . 9% 0 .0 % -1 00 .0 % -63.1% -68 . 8%
351.7
Figure 20. Price Performance Source. Capital IQ
Page 16
Comparable C ompany Analys is > Web 2.0
V aluation Multiples C ompany Na me
Acce leri ze N ew Medi a, Inc. Actoz S oft C o. , Ltd. AQ Inte ractive, Inc. As s ociated Media Holdings I nc. B i gs tring C orp. B e ta wave C orporation B e yond C omme rce, Inc. B r ight T hi ngs plc B r oadW ebA s ia Inc. C DC C orp. C hina G ateway C orpora tion C hines e G amer International C ornerW orld C orporation DAD A S pA DXN Holdings B hd Dibz International, Inc. Digi ta lP os t Interactive, Inc. Digi ta lT own, I nc. Dolphin Digita l Media , Inc. E olith C o. Ltd. E xtensions, Inc. F ina ncia l Media Group, I nc. F luid Mus ic C anada , Inc. F rogs te r Interactive P icture s A G Ga mania Digital E nterta inme nt C o. , L td. Ga meO n C o L td. Ge oS entric O yj Gi ant Inte ractive G roup, Inc. Gi gaMe dia L td. Gr avity C o., Ltd Gr ee, Inc. GungHo Online E nte rtainme nt, I nc. HanbitS oft, Inc. IA C /Inte rA ctive C orp. IA S E ne rgy, I nc. IdeaE dge, Inc. is ee media I nc. J umbuck E ntertainment P ty Ltd. J umpT V I nc. K a boos e Inc. K i ngs oft C o. Ltd. Lingo Media C orpora tion Live World I nc. LookS mart, Ltd. Magnitude Informa tion S ys tems Inc. Mixi, I nc. Modern T imes Gr oup Mtg AB Moggle, Inc MOK O. mobi L imited NE O W IZ G ame s C orpora tion NetDra gon We bS oft, Inc. Netea s e. com Inc. NeXplore C or por ation Ngi G roup Inc. Northgate T e chnologies L imited Open T e xt C orp. Openwa ve S ys tems Inc. P e rfect W orld C o., Ltd. P hotoC hannel Ne tworks Inc. Quepas a C orp. OA O R B C Informa tion S ys tems S handa Intera ctive E ntertainment L td. S hutterfly, I nc. S K C ommunications C o. , Ltd. S NA P Inter active, Inc. S NM G lobal Holdings S ocial Me dia V enure s , Inc. S i te s ear ch C orpora ti on S park Ne tworks , Inc. S pectrumDNA, Inc. T encent Holdings Ltd. T he P ar ent C ompany T he 9 Lim ited T he S tre et.com, Inc. T otal S port O nl ine AS T ree . C om, Inc. Unis e rve C ommunications C orp. United Online Inc. UOMO Media, I nc VO IS , Inc. W ebz en Inc. W izz a rd S oftwa re C orporation W ooz yF ly, Inc. W orlds .com Inc. W ynds torm C orporation XI NG A G Y e dangO nli ne C orp. Y nk K or ea I nc. ZipL ocal I nc. High Low Average Median
S ec tor
Dir ect Ma rketing G aming G aming Mobile Ins tant Mes s aging Media S ocia l N etworking S ocia l N etworking S ocia l N etworking G aming Mobile G aming C ontent S ocia l N etworking S ocia l N etworking S NS A pps C ontent S ocia l N etworking S ocia l N etworking G aming C ontent Dir ect Ma rketing Media G aming G aming G aming Mobile G aming G aming G aming S ocia l N etworking Media G aming Media V ide o S ocia l N etworking C ontent S ocia l N etworking V ide o C ontent G aming Le arning S ocia l N etworking Dir ect Ma rketing S ocia l N etworking S ocia l N etworking Media G aming S ocia l N etworking G aming G aming G aming C ontent Media Dir ect Ma rketing C ollabora tion Mobile G aming Digital Imaging S ocia l N etworking Media G aming Digital Imaging S ear ch Dating Media S ocia l N etworking S ocia l N etworking S ocia l N etworking Media P ortal Media G aming Media Media P ortal S ocia l N etworking Media Media S ocia l N etworking G aming P odca s ti ng S ocia l N etworking C ontent C ontent S ocia l N etworking G aming G aming Dire ctory
C ountry
United S tates S outh Korea Ja pa n United S tates United S tates United S tates United S tates United K ingdom United S tates Hong K ong United S tates T aiwa n United S tates Italy Mala ys ia United S tates United S tates United S tates United S tates S outh Korea United S tates United S tates United S tates Ge rma ny T aiwa n Ja pa n Finla nd C hina T aiwa n S outh Korea Ja pa n Ja pa n S outh Korea United S tates C anada United S tates C anada Austra lia C anada C anada C hina C anada United S tates United S tates United S tates Ja pa n S weden United S tates Austra lia S outh Korea C hina C hina United S tates Ja pa n India C anada United S tates C hina C anada United S tates R us s ia C hina United S tates S outh Korea United S tates United S tates United S tates United S tates United S tates United S tates C hina United S tates C hina United S tates Norwa y United S tates C anada United S tates C anada United S tates S outh Korea United S tates United S tates United S tates United S tates Ge rma ny S outh Korea S outh Korea C anada
P ri mar y E xc hange
OTCB B K OS E TS E OTCP K OTCB B OTCB B OTCB B A IM OTCP K Na s daqGS OTCB B G TSM OTCB B CM K LS E OTCP K OTCB B OTCB B OTCB B K OS E OTCP K OTCB B TS X XT R A G TSM TS E HL S E NY S E Na s daqGS Na s daqGM TS E OSE K OS E Na s daqGS OTCB B OTCB B T S XV ASX TS X TS X S E HK T S XV OTCP K Na s daqGM OTCB B TS E OM OTCB B ASX K OS E S E HK Na s daqGS OTCP K TS E B SE Na s daqGS Na s daqGS Na s daqGS T S XV Na s daqC M R TS Na s daqGS Na s daqGS K OS E OTCB B OTCP K OTCP K OTCB B A ME X OTCB B S E HK OTCP K Na s daqGS Na s daqGM O T C NO Na s daqGM T S XV Na s daqGS OTCB B OTCB B Na s daqGM A ME X OTCB B OTCB B OTCB B XT R A K OS E K OS E T S XV
T ic ke r
A C LZ A0 52 790 3838 A S MH B S GC BW AV B Y OC A IM: B GT BW B A C HI N.A C G WY G T S M: 30 83 CW R L C M:D A DXN DI B Z DG LP DG T W DP DM A0 41 060 E XT I F NGP T S X: F MN FR G 6180 3812 GE O1 V GA GIGM GR V Y T S E : 363 2 3765 A0 47 080 IAC I IA S C . A OT C B B :IDA E IE E AS X: J MB T S X:J T V T S X :K AB 3888 T S X V: LM LV W D LO OK MA GY 2121 MT G B MMOG MK B A0 95 660 777 NT E S NXP C 2497 590057 OTEX OPW V P WR D T S XV : PN QP S A R BC I S ND A S F LY A0 66 270 S TV I S NMN S MV I S TP C LO V S P XA 700 KI DS .Q NC T Y TS CM TOS O TR E E T S XV :US S UNT D UO MO VO IS W ZE N W ZE W ZY F W DDD W YN D O 1B C A0 52 770 A0 23 770 T S X V: ZI P
US D Ma rket C a p ($ m)
6. 2 6 6. 6 1 8. 5 0. 1 0. 7 5. 3 2 3. 3 2. 9 4 3. 3 9 8. 2 0. 0 37 3. 0 6. 6 9 7. 6 1 7. 8 0. 0 0. 3 8 1. 5 2 3. 8 1 7. 2 1 4. 2 0. 9 1 6. 5 1 7. 0 13 0. 6 8 1. 7 2 4. 3 1, 66 1. 1 30 8. 0 1 7. 5 1, 19 4. 2 12 9. 3 5 0. 5 2, 05 9. 2 4. 2 1 6. 9 3. 2 1 4. 8 3 5. 8 3 8. 6 37 6. 7 9. 1 6. 2 1 7. 4 7. 9 52 6. 5 1, 00 9. 8 7 2. 6 3. 2 26 0. 0 23 1. 8 2, 77 4. 8 5 2. 4 2 3. 4 2 2. 7 1, 65 6. 1 6 8. 3 67 2. 1 4 0. 9 1 4. 3 3 3. 3 2, 42 9. 1 22 4. 6 22 1. 1 1 0. 1 0. 0 0. 0 4 0. 3 4 8. 1 8. 8 12, 61 3. 5 1. 3 35 7. 5 5 9. 5 0. 2 4 2. 5 1. 0 32 9. 4 5. 1 3. 3 1 9. 2 1 8. 1 2. 6 1 0. 0 2. 2 19 0. 4 7 4. 6 6. 2 0. 9 12, 61 3. 5 0. 0 351.7 2 3. 3
T E V/LT M R e venue
3. 3x 0. 8x 8. 0x 28 .9 x 2. 5x 24 .1 x 12 .0 x 0. 4x 0. 0x 8. 5x 13 .1 x 0. 6x 0. 5x 2. 8x 1. 0x 0. 0x 0. 7x 3. 1x 1. 0x 0. 3x 3. 6x 1. 2x 37 .8 x 1. 0x 0. 7x 0. 2x 0. 6x 0. 9x 3. 9x 0. 8x 2. 7x 3. 1x 0. 4x 3. 5x 1. 0x 2. 4x 2. 0x 0. 6x 0. 2x 2. 3x 2. 5x 0. 0x 0. 6x 1. 5x 3. 9x 1. 1x 0. 1x 0. 8x 15 .2 x 0. 2x 4. 6x 0. 2x 0. 1x 1. 0x 11 .4 x 2. 9x 3. 3x 1. 5x 0. 5x 0. 6x 37 .8 x 0. 0x 3.9x 1. 0x
T E V/ NT M R e venue
0. 4x 0. 5x 1. 2x 0. 2x 0. 7x 0. 9x 2. 1x 1. 7x 0. 7x 0. 2x 0. 6x 2. 1x 0. 2x 0.8x 0. 7x
T E V/L T M E B ITD A
4 . 5x 8 . 2x 18 .0 x 4 . 0x 3 . 7x 0 . 0x 5 . 8x 1 . 2x 5 . 0x 6 . 8x 4 . 8x 2 . 4x 10 .2 x 8 . 0x 9 . 3x 6 . 0x 7 . 5x 1 . 3x 1 . 0x 9 . 2x 0 . 1x 4 . 8x 16 .3 x 38 .9 x 3 . 9x 30 .7 x 31 .3 x 4 . 1x 8 . 5x 6 . 9x 38 .9 x 0 . 0x 8.8x 5 . 9x
TE V /NT M E B IT DA
7. 0x 4. 7x 1. 8x 5. 2x 7. 1x 8. 0x 5. 4x 4. 3x 2. 7x 8. 0x 1. 8x 5.1x 5. 2x
P /L T M E P S
1 3. 4x 2 2. 9x 5. 9x 3. 5x 1 5. 2x 8. 3x 1. 6x 9. 1x 1 5. 4x 7. 2x 1 1. 1x 2. 5x 2 5. 3x 3. 0x 1 5. 3x 6. 6x 1. 8x 6. 9x 1. 5x 3 3. 8x 1. 2x 2. 0x 5 0. 5x 5 6. 1x 1 1. 6x 4 1. 3x 1. 1x 6 2. 8x 3. 6x 1 8. 6x 9. 1x 6 2. 8x 1. 1x 15.1x 9. 1x
P /NTM E P S
15 . 2x 12 . 4x 8. 6x 23 . 2x 7. 5x 11 . 7x 13 . 1x 27 . 3x 6. 3x 20 . 1x 11 . 9x 8. 9x 5. 6x 27 . 3x 5. 6x 13.2x 11 . 9x
P /TangB V
1. 4x 0. 3x 7. 4x 0. 4x 1. 4x 1. 6x 2. 0x 1. 1x 5. 3x 0. 3x 3. 0x 1 8. 4x 3 9. 8x 1. 8x 1. 0x 1 2. 4x 1. 1x 1. 8x 2. 6x 2. 4x 2. 9x 0. 6x 4. 1x 3. 1x 9. 0x 1. 3x 0. 5x 0. 4x 0. 9x 0. 4x 9. 5x 5. 9x 0. 9x 1. 3x 7. 4x 3 8. 1x 9. 4x 1 6. 4x 0. 1x 0. 6x 0. 6x 7. 5x 0. 0x 5. 0x 4. 2x 3 9. 8x 0. 0x 5.2x 1. 8x
Figure 21. Valuation Comparison Source. Capital IQ
Page 17
C omparable C ompany Analys is > Web 2.0
S ummary by C ountry
C ompany Na me U nited S tates C an ada S outh K o re a C hina J a pa n T a iwa n A us tra lia G erma ny Norway H on g K ong F inla nd Ita ly U nited K ing dom In dia S weden R us s ia Ma lay s ia G rand Total 40 10 9 8 6 3 2 2 1 1 1 1 1 1 1 1 1 89 US D Market C a p ($ m) C h ina Un ite d S tate s J apan C a nada S wede n T a iwa n S outh K orea G erma ny Ho ng K on g I ta ly R u ss ia F inland I ndia A us tralia M ala ys ia Un ite d K in gdom No rwa y G rand T ota l 21 , 116 . 6 3 , 338 . 5 1 , 973 . 6 1 , 795 . 0 1 , 009 . 8 811 . 6 733 . 0 207 . 3 98 . 2 97 . 6 33 . 3 24 . 3 22 . 7 18 . 0 17 . 8 2.9 0.2 31 ,300.3 Avg US D Mark et C ap ($m ) C hina S weden J apa n T a iwa n C a na da G erma ny H ong K ong Ita ly U nited S tates S outh K o re a R us s ia F inla nd In dia Ma lay s ia A us tralia U nited K ing dom Norway G ra nd Total 2, 639. 6 1, 009. 8 328. 9 270. 5 179. 5 103. 7 98. 2 97. 6 83. 5 81. 4 33. 3 24. 3 22. 7 17. 8 9. 0 2. 9 0. 2 351. 7 US D L T M Total R ev ($m ) U nited S ta tes C hina S we den C ana da S outh K orea J apa n H ong K ong T aiwa n Italy R us s ia Ind ia Ma la ysia G erman y Austra lia F in la nd Norwa y U nited K ingd om G rand Total 3 , 118 . 8 2 , 770 . 4 1 , 558 . 2 886 . 0 501 . 8 490 . 7 428 . 1 345 . 9 220 . 4 136 . 8 131 . 3 75 . 9 46 . 0 12 . 8 5 .3 2 .0 0 .2 10 ,730 .7 US D L T M Total E B I TDA ($m) C hina S we den C a na da J apan U nited S tates T aiwan S outh K o re a Ita ly Ind ia H ong K ong R us s ia G erma ny Ma lays ia A us tra lia Norway U nited K ingd om F in lan d G rand T otal 1, 40 4.6 24 9. 1 18 6. 2 12 7. 2 12 5. 5 8 3.9 5 8.4 3 5.2 2 3.1 1 8.8 1 7.9 1 2.7 1 0.1 2.5 -1.0 -1.6 -1 2.3 2,34 0.3 E B IT DA % S wede n U nite d K ingdom F inla nd G erm any J a pa n Hong K on g R uss ia U nite d S tate s C a nada C hina T a iwa n I ndia S outh K orea A us tra lia Norwa y I ta ly M a la ys ia G ra nd Tota l 4 8.6% 4 7.1% 3 6.0% 3 1.0% 2 7.0% 1 6.0% 1 0.1% 9 . 5% 6 . 8% 2 . 7% -0 . 8% -4 . 9% -6 . 8% -42 . 5% -91 . 6% NA NA 7 .3%
Figure 22. Comparison by Country Source. Capital IQ
C omparable C ompany Analys is > Web 2.0
S ummary by Exc hange
C ompany Na me OTCB B Nas da qG S OTCP K K OS E TS E Nas da qG M T S XV S E HK TS X A ME X XT R A ASX GTSM O T C NO HLS E OSE CM B SE Nas da qC M NY S E A IM OM R TS K LS E G rand Total 22 11 9 7 5 5 5 3 3 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 89 US D Market C a p ($ m) S E HK Na sdaqG S TS E NY S E OM K OSE GTS M OTCB B XTR A Na sdaqG M OS E OTCP K CM TS X A ME X T S XV RTS HL S E BS E AS X K LS E Na sdaqC M A IM O T C NO G rand T ota l 13 , 222 . 0 10 , 977 . 3 1 , 844 . 3 1 , 661 . 1 1 , 009 . 8 696 . 3 503 . 6 332 . 5 207 . 3 156 . 1 129 . 3 117 . 4 97 . 6 91 . 0 66 . 1 55 . 1 33 . 3 24 . 3 22 . 7 18 . 0 17 . 8 14 . 3 2.9 0.2 31 ,300.3 Avg US D Mark et C ap ($m ) S E HK NY S E OM Na s da qG S TS E G TSM OSE XT R A K OS E CM RTS A ME X Na s da qG M TS X HL S E BSE K LS E OTCB B Na s da qC M OTCP K T S XV ASX A IM O T C NO G ra nd Total 4, 407. 3 1, 661. 1 1, 009. 8 997. 9 368. 9 251. 8 129. 3 103. 7 99. 5 97. 6 33. 3 33. 1 31. 2 30. 3 24. 3 22. 7 17. 8 15. 1 14. 3 13. 0 11. 0 9. 0 2. 9 0. 2 351. 7 US D L T M Total R ev ($m ) OM Nas da qG S S E HK NY S E CM RTS BS E OSE Nas da qG M TSE KLSE GTSM KOS E AM E X TSX XT R A OT C PK TSXV AS X HLS E O T C NO OT C BB AI M Nas da qC M G rand Total 1 , 558 . 2 487 . 1 368 . 4 233 . 1 220 . 4 136 . 8 131 . 3 104 . 0 84 . 8 77 . 3 75 . 9 72 . 7 64 . 0 31 . 7 24 . 7 23 . 0 21 . 0 9 .3 6 .4 5 .3 2 .0 1 .6 0 .2 0 .1 132 .5 US D L T M Total E B I TDA ($m) Na s da qG S S E HK OM NY S E TSE K OS E GTSM CM BSE RTS OSE XT R A K LS E A ME X ASX O T C NO A IM TSX TSXV Na s da qC M HL S E Na s da qG M OTCPK OTCBB G rand T otal 1, 22 9.2 52 9. 7 24 9. 1 14 4. 3 11 2. 0 5 3.9 3 5.9 3 5.2 2 3.1 1 7.9 1 5.3 1 2.7 1 0.1 5.9 2.5 -1.0 -1.6 -5.9 -1 0.1 -1 1.8 -1 2.3 -1 4.9 -2 7.2 -5 1.5 2,34 0.3 E B IT DA % OM A IM A ME X HL S E XTR A TS E GTS M T S XV NY S E Na sda qG M OTCP K R TS Na sda qC M OTCB B Na sda qG S BSE TS X K OSE S E HK AS X O T C NO CM OS E K LS E G ra nd Tota l 4 8.6% 4 7.1% 3 6.3% 3 6.0% 3 1.0% 2 7.0% 2 3.9% 1 6.7% 1 4.7% 1 3.7% 1 1.1% 1 0.1% 9 . 4% 4 . 2% 1 . 9% -4 . 9% -6 . 9% -9 . 1% -16 . 5% -42 . 5% -91 . 6% NA NA NA 7 .3%
Figure 23. Comparison by Exchange Source. Capital IQ
Page 18
Financing - Last Three Months (US$ m)
Month Jan-09 Company Name Aster Data Systems Yodle AdMob VirtuOz IMVU NewsGator Go Internet Media DECA Nurien RatePoint One True Media SundaySky Play Hard Sports JibJab Xobni InsideView Kewego Fliqz Motionbox SocialMedia Sportsblogs AboutUs Geni Gbox E-Global Sports Network mEgo Tripwolf Hubdub Snooth CoveritLive BackType Identi.ca Meez Country USA USA USA France USA USA USA USA Korea USA USA Israel USA USA USA USA France USA USA USA USA USA USA USA USA USA Austria UK USA Canada USA Canada USA USA South Africa USA USA UK USA Israel France China USA USA USA Canada USA Netherlands USA USA USA UK USA Israel USA Netherlands USA UK USA USA USA USA USA USA USA Canada USA USA USA Netherlands USA Angel/Seed Debt financing Series A Series B 17.0 Series C 13.0 12.5 11.4 10.0 10.0 10.0 10.0 10.0 10.0 9.0 8.0 8.0 7.5 7.0 6.5 6.2 6.0 6.0 6.0 5.0 5.0 5.0 5.0 3.5 2.5 2.5 1.2 1.0 1.0 0.3 0.2 5.0 45.2 73.9 20.0 18.0 15.0 13.5 12.5 12.0 9.0 6.0 5.6 4.3 4.2 4.0 4.0 4.0 3.0 2.9 2.3 2.0 2.0 1.6 1.4 1.3 1.3 0.7 24.8 82.2 35.0 10.0 Series D Series E Grand Total 17.0 13.0 12.5 11.4 10.0 10.0 10.0 10.0 10.0 10.0 9.0 8.0 8.0 7.5 7.0 6.5 6.2 6.0 6.0 6.0 5.0 5.0 5.0 5.0 3.5 2.5 2.5 1.2 1.0 1.0 0.3 0.2 216.3 35.0 20.0 18.0 15.0 13.5 12.5 12.0 9.0 6.0 5.6 4.3 4.2 4.0 4.0 4.0 3.0 2.9 2.3 2.0 2.0 1.6 1.4 1.3 1.3 0.7 185.5 15.0 12.0 10.5 10.0 5.5 5.0 4.0 3.9 2.0 2.0 1.3 1.3 0.8 73.2 475.0
Jan-09 Total Feb-09 Twitter Synthasite Tremor Media Offerpal Media Imagini Emergent Game Technologies Outbrain Tvtrip Tongxue Oodle TextDigger OneSpot Mixpo FetchDog Virtual Fairground 7 Billion People FamilyLink.com WhistleBox Mendeley Outright Tvinci Filtrbox MMO Life Cake Financial fav.or.it Feb-09 Total Mar-09 Vidyo SendMe Inc. Auditude SuperSecret Greystripe OMGPOP Simulmedia Tynt Sports Composite DE Hunch AdultSpace Myngle 33Across Mar-09 Total Grand Total
13.3
76.4
58.6 15.0 12.0
12.5
10.5 10.0 5.5 5.0 4.0 3.9 2.0 2.0 1.3 1.3 1.3 19.6 1.3 1.3 19.9 89.9 0.8 18.3 168.5 20.5 161.3 12.0 12.0
22.5
Figure 24. Financing, Last Three Months Source. Company reports
Page 19
Private Company Des c riptions - Current Month C apital Market Ac tivity
C ompany
33 Ac ros s Inc .
HQ
Un ite d S ta te s
Webs ite
www. 3 3a cro s s.c om
Des c ription
33A c ros s, named a fte r the 3 3% of interne t us ers at which its ma rk eting is dire cted, propos es to us e socia l networks to ma k e online a dv ertis ing more eff ec tiv e. In a depa rture from wides prea d direc t res pons e a dv ertising, this c ompany is dev elo pin g te chnology to identify and ta rge t mes s ages to the se mos t influentia l web us ers , in order to us e their s wa y to the c lient’s adva nta ge. A dultS pa ce is a n a dult ta rgeted s ocia l ne twork . A uditude , In c. opera tes as a bus in es s-to -bus ine ss c ompa ny. T he co mpa ny’s produc t is a n ad pla tfo rm for syndica te d media mana gement a nd targe tin g ba se d on automated co ntent identific ation. T he compa ny helps c onte nt o wners , publis hers , and adv ertis ers to chan ge the wa y media is co ns umed online. T he co mpa ny wa s fou nded in 199 9 an d is ba s ed in P a lo Alto, C alifo rn ia . G re ys tripe, Inc. opera tes a n ad-s upported mo bile games and applica tions dis tribution pla tfo rm. Th e c ompan y provides o nline ga ming a nd ingame a dv ertis ing s olution s through publis her s ites . Its A dW R AP produ ct s uite en a bles brand a dv ertise rs to communic ate th eir bra nd mes sa ges to mobile a udienc e; publish ers to s erv e ads through the ir ga me s; and c ons umers to downloa d ga mes , as we ll a s de live rs ima ges , v ide os , an d s cro lling ban ners to mobile game s and a pplic atio ns . T he co mpa ny ’s s olutions als o inclu de A dW R A P C a mpa ign Man ager, a n a dv ertis ing W eb in terfac e that allows a dvertis ing age nc ie s a nd a d res elle rs to cre a te a nd mon itor mobile in-ga me ad c ampaign s; AdW R AP C atalog P ro gram, which ena bles partne rs to dis tribu te a mo bile ga me ca ta log; an d A dW R A P for P ublis he rs platform tha t provide s mobile game publis he rs a n au toma te d proces s , whic h ad-e nables mobile games a nd a pplic ations . It s ev ers developers , c arrie rs a nd dis tributors , game pla ye rs , a nd c on sume r W eb s ites . T he c ompany is ba s ed in S a n F rancisc o, C alifo rn ia. N/A I'm in lik e with you provides onlin e interac tion with frie nds . I t fa c ilitate s to c reate a ga me, browse ga mes a nd profiles , find frien ds , a n d dra w pic tures . T he compa ny is ba s ed in the U nited S ta tes . My ngle B .V . pro vides an onlin e langu a ge e-le a rn ing pla tform. Th e c ompan y brings together la ngu age teac he rs a nd s tu dents ena bling live les so ns or c onv ers a tional prac tic e ov er th e In ternet. My ngle B .V . wa s founded in 2 007 and is ba se d in A ms te rda m, T he Nethe rla nds. S endM e, I nc. , a mo bile media co mpa ny, prov ides dire ct to co ns ume r mo bile e nterta inment s ervic es in the U nited S ta tes . I t provides intera ctive mo bile trivia, ringtone s, wallpa per, a nd mobile s weeps ta ke s. T he compa ny als o prov ide s horos copes , jok es , gos s ips , roman ce tips , s ports trivia , pic k -up lin es , diet tips, da ily ins pira tio ns , a n d fan c lubs. S endM e, I nc . was founde d in 20 06 a nd is ba s ed in S a n F ra nc isco, C alifornia . S imulmedia is a New Y ork C ity-ba se d media mark eting c ompan y dedica ted to improving the effe ctivene ss of progra m promotion on televis ion. T he c ompa ny is pione ering the development of pre dictive te chnology to help te levision compa nies deliv er th e right o n-air promotions to th e right v ie wers a t the right time.
Adults pac e Auditude , Inc.
N/A Un ite d S ta te s
www. a dults pa ce.c om www. a uditude .c om
G reys tripe, I nc .
Un ite d S ta te s
www. grey s tripe.com
Hunc h I'm i n like with you Myngl e B .V . S endMe , Inc .
Un ite d S ta te s Un ite d S ta te s Ne therla nds Un ite d S ta te s
www. hunch.c om iminlik ewithyou. co m www. myn gle. com www. s en dme mobile.c om
S imulme dia, Inc .
Un ite d S ta te s
http://www. s imulmedia .co m/
S ports C ompos i te DE Inc.
Un ite d S ta te s
www. roto hog. co m
S ports C ompo site DE , Inc ., doing bus ine ss a s R otoH og, operates a s a f anta sy s ports ga me on the W eb. T he compa ny’s s ervices in clude a th le te price upda tes ; ba s eba ll s co re s, s tats , a nd c ha ts ; ma rk et an a lys is ; a nd co mpe titive ros te r v iews . S ports C ompo site DE , Inc. wa s fou nded in 200 6 a nd is ba s ed in Inglewoo d, C a lifornia . S uperS ec re t is a s upe r-fu n, s ecret world full of adventures a nd s urpris es . C h oos e a c harac ter a nd do all you r fa vorite s tuff : c ha t with frie nds , pla y ga mes a ll da y, e xplore s ecret plac es , get clues , and sh op f or ta s ty treats and excelle nt c lothe s. T he more you pla y, the older y our c ha ra cter gets , until you're a teena ger with a pet, an a partment, an d a cc es s to rea lly co ol hangouts . Tha t mea ns lo ts of S uperS ecret birthday s —fa r more than just the us ua l one a yea r. E very time you v is it, the re 'll be frie nds wa iting to pla y and new things to be dis c ov ered. Y ou c a n ev en play pra n ks o n pe ople, if y ou 're tha t s ort of pers on. An d we think ma ybe you a re . S uperS ec ret. L ik e life. B ut way mo re fun. T yn t Mu ltimedia In c. dev elops hos ted s olutions for online pu blis hers , s oc ia l network s , a n d on line communities to inc reas e us er enga gement. It offe rs T ra cer, a technolo gy tha t rec ords the us er ac tion a nd a utomatic ally adds a link bac k to the origina l c onte nt wh en it is pas ted when a us er highlights o r copie s text or images from W eb s ite s. T he c o mpa ny was fou nded in 200 7 a n d is ba s ed in C alga ry, C a na da. V idyo, Inc . pro vides dis ruptive video technolo gy for traditiona l video co mmunic ations . I t des igns s oftware de velopmen t to olk it tha t a llows its tec hn ology to be e a s ily inte gra ted into s oft s witch or gatewa y, v ide o ne twork ing a nd c onfe re ncing s ys tems , pers onal c ommunic a tion devices , pres enc e bas ed IM produc ts or s ervices , W eb conferencing pro ducts or s ervic es , a u dio a n d v ide o c onferencin g s ervic es , a n d ba ck bo ne a nd V OI P n etwork s . T he company was fo rmerly k no wn as L a ye re d Me dia , In c. a nd cha nge d its name to V idyo, Inc . in Octo ber 20 07. The c ompany was founded in 2 005 a nd is he adqu a rtered in H ac ke ns a ck , New J ers ey .
S uperS ecr et, Inc .
Un ite d S ta te s
www. s upers e cret. co m
T ynt Multime dia Inc .
C a nada
www. ty nt.co m
V idyo, Inc.
Un ite d S ta te s
www. vidyo. co m
Figure 25. Company Descriptions Source. Company reports, Capital IQ, Crunchbase
Page 20
RELEVANT DISCLOSURES APPLICABLE TO: NONE
LIST OF DISCLOSURE TERMS: 1. None applicable.
ANALYST CERTIFICATION
Each analyst of Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.
I n f o r ma t i o n a b o u t Re s e a r ch C a p i t a l C o r p o r a t i o n ’ s Ra t i n g S y s t e m, t h e d i s t r i b u t i o n o f o u r r e s e a r ch t o cl i e n t s a n d t h e p e r ce n t a g e o f r e c o m me n d a t i o n s wh i c h a r e i n e a c h o f o u r r a t i n g c a t e g o r i e s i s a v a i l a b l e o n o u r we b si t e a t ww w. r e s e a r ch c a p i t a l . c o m. T h e i n f o r ma t i o n c o n t a i n e d i n t h i s r e p o r t h a s b e e n d r a wn f r o m s o u r c e s b e l i e ve d t o b e r e l i a b l e b u t i t s a c cu r a c y o r co mp l e t e n e ss i s n o t g u a r a n t e e d , n o r i n p r o vi d i n g i t d o e s R e s e a r c h Ca p i t a l C o r p o r a t i o n a s s u me a n y r e sp o n si b i l i t y o r l i a b i l i t y . R e s e a r ch C a p i t a l C o r p o r a t i o n , i t s d i r e ct o r s , o f f i c e r s a n d o t h e r e mp l o y e e s ma y , f r o m t i me t o t i me , h a v e p o si t i o n s i n t h e s e cu r i t i e s me n t i o n e d h e r e i n . Co n t e n t s o f t h i s r e p o r t c a n n o t b e r e p r o d u c e d i n wh o l e o r i n p a r t wi t h o u t t h e e xp r e ss e d p e r mi s si o n o f R e se a r ch C a p i t a l C o r p o r a t i o n . ( U . S . I n s t i t u t i o n a l Cl i e n t s — Re s e a r ch C a p i t a l U . S. A . I n c. ( a wh o l l y o wn e d s u b si d i a r y o f R e s e a r c h C a p i t a l Co r p o r a t i o n ) a cc e p t s r e s p o n si b i l i t y f o r t h e c o n t e n t s o f t h i s r e p o r t s u b je c t t o t h e t e r ms & l i mi t a t i o n s s e t o u t a b o v e . F i r ms o r i n s t i t u t i o n s r e ce i vi n g t h i s r e p o r t s h o u l d e f f e ct t r a n s a ct i o n s i n s e c u r i t i e s d i sc u s se d i n t h e r e p o r t t h r o u g h R e s e a r ch C a p i t a l U . S . A . I n c. , a B r o k e r - D e a l e r R e g i s t e r e d wi t h t h e U n i t e d S t a t e s S e cu r i t i e s a n d E xc h a n g e C o m mi s si o n ) .
Tor on to 4 16. 8 60. 76 00
M ontr eal 51 4. 39 9. 150 0
V anco u ver 60 4. 66 2. 180 0
C al gar y 40 3. 26 5. 740 0
R egi na 306. 566. 7550
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