SOFTWARE & SERVICES
9 JUNE 2009
WEB 2.O WEEKLY
VENTURE CAPITAL INDUSTRY GOING THROUG H SIGNIFICANT CHANG E
AR E W E L O OK IN G AT F E W ER B UT BI GG E R IN V E S T ME NT S?
DAVID SHORE, CFA, MBA 416.860.6784
david.shore@researchcapital.com Arun Thomas (Associate) 416.860.7666
In previous editions of this report, we have talked about the decline in the flow of money from institutional accounts (pension funds, hedge funds, etc.) into the venture capital industry, as well as direct investment in start-up companies. Falling valuations have been the principal reason for this trend, with private company (start-up) and early IPOs suffering tremendously and affecting investor returns. Global capital market levels coupled with the economy and redemptions are also to blame. The W all Street Journal reported that the U.S. VC industry sank $29.7 billion into start-ups in 2008 and produced just $24.9 billion from the IPOs and sale of start-ups. The slowing capital flow into the venture capital sector has initiated a significant change within the industry. The Journal also reported that according to the National Venture Capital Association, the number of venture capital principals has dropped 15% from the end of 2007 to the end of 2008 (from 8,892 to 7,497). W e agree with the Journal that this is part of a natural evolution in the industry. Investors (in VC funds) are seeking fewer principals to handle their money, but invest larger amounts in good companies, unlike the past few years when funds were widely distributed in smaller portions across many companies. This will naturally result in better vetting of business models, with the good ones finding a lot more capital and the mediocre and poor start-ups being left aside. On the capital raise front, Sugar Inc. leads: The capital raise from Sugar Inc. for $16 million was the largest deal for the first week of June, closely followed by Grab Networks at $12.0 million. All deals, except the two mentioned above, were less than $10 million. The average value for the first week of June is $6.0 million, slightly below the average value for May of $6.4 million (excluding the investment in Facebook) on 16 financings. The April average was $6.2 million on 23 financings.
Financing Activity Last Three Months
160.0 7.0
6.2 140.0
6.4 6.0 6.0
120.0 5.0
100.0 4.0 (US$m) 80.0 3.0 60.0 (US$m) 2.0 40.0 1.0 0.0 Apr-09 May-09 (excl FB) Total Average Jun-09
20.0
0.0
A mixed price performance week: The companies in our universe had relatively strong stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with 20 companies showing positive returns on the week. Actoz Soft Co. (A052790:KOSE) led the group with a 23.6% return, while CDC Corp. (CHIN.A:NASDAQ) had the worst return, dropping 12.4% in the week.
This report has been created b y Anal ysts that are emplo yed b y Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report.
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 Ninety-three public Web 2.0 companies = $55 billion market cap: Our W eb 2.0 universe contains 93 companies, with a combined market cap of approximately $54.9 billion (Figure 1). The average market cap for the group is ~$590 million (but a median of only $48.2 million), with average trailing revenue of $151 million (median $54 million). The companies are also generally profitable, with a median EBITDA margin of 14.2%. On a valuation basis, the overall average is 5.4x trailing revenue (median 2.0x) and 10.3x trailing EBITDA (median 9.4x). Fourteen of the companies have more than 500 employees.
C omparable C ompan y A nalys is > W eb 2.0
C om pany Nam e
Acce le riz e N ew Me dia, Inc. Actoz S of t C o., L td. AQ Inte ractive , Inc. As s ocia ted Media Holdings Inc. B igstring Co rp. B e tawave Corpora tion B e yond Commerce, Inc. B right T hings plc B roa dW ebAs ia Inc. C DC C orp. C ha ngyou. com Limite d C hina G ate wa y C orpora tion C hine s e G amer In ternational C ornerW orld C orporation C yberplex Inc. D ADA S pA D XN Holdings B hd D ibz Inte rnational, Inc. D igitalP ost Inte ra ctive , Inc. D igitalT own, Inc. D olphin D igital Me dia, In c. E olith C o. L td. E xte ns ions , Inc. F inancia l Media G roup, Inc. F luid M us ic Ca nada, Inc. F rogs te r Interactive P icture s AG G a ma nia D igital E ntertainment C o., L td. G a me On C o L td. G e oS e ntric O yj G iant Intera ctive G roup, Inc. G iga Media Ltd. G ravity C o., L td G ree, Inc. G ungH o O nline E ntertainment, Inc. H anbitS of t, Inc. IAC /InterActiveC orp. IAS E nergy, Inc. is ee media Inc. J umbuck E ntertainment P ty Ltd. J umpT V Inc. K a boos e Inc. K ings oft Co. Ltd. Lingo Media Corporation Live Wo rld Inc. LookS mart, Ltd. Magnitude Information S ys tems Inc. Mixi, Inc. Mode rn Times G roup Mtg AB Moggle , Inc MOK O.mobi L imited Myriad G rou p AG N E OW IZ G ames C orpora tion N etD ragon W ebS oft, Inc. N ete as e.com I nc. N eXplore Corpora tion N gi G roup Inc. N orthgate Te chnologies L imited Open T e xt Corp. Openwave S ys tems Inc. P e rf ect W orld C o., Ltd. P hotoChannel N etwork s Inc. Quepa s a C orp. OA O R B C Information S ys tems S handa Interactive E ntertainme nt L td. S hutte rf ly, Inc. S K C ommunications Co., Ltd. S N AP Inte ra ctive , Inc. S N M G lobal H oldings S ocia l Media V e nures , Inc. S ocia lwis e, Inc. S ohu. com Inc. S ite s earch C orporation S park N etworks , Inc. S pectrumDN A, Inc. T encent Holdings L td. T he P arent C ompany T he 9 L imited T he S treet.com, Inc. T otal S port Online A S T ree.C om, Inc. U nis erve C ommunications Corp. U nited Online Inc. U OMO Media , Inc V a lueC lick Inc. V O IS , Inc. W ebze n Inc. W izza rd S of twa re Corpora tion W orlds .com Inc. W ynds torm C orporation XIN G AG Y e dangOnline Corp. Y nk K orea Inc. ZipLocal Inc. H igh Low A vera ge Median
L TM as o f T ic ker
3 /31 /200 9 3 /31 /200 9 1 2/31 /200 8 6 /30 /200 7 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 9 /30 /200 8 9 /30 /200 8 3 /31 /200 9 3 /31 /200 9 9 /30 /200 8 3 /31 /200 9 1 /31 /200 9 3 /31 /200 9 9 /30 /200 8 2 /28 /200 9 NA 3 /31 /200 9 2 /28 /200 9 3 /31 /200 9 1 2/31 /200 8 3 /31 /200 9 2 /28 /200 9 3 /31 /200 9 6 /30 /200 8 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 1 2/31 /200 8 9 /30 /200 8 6 /30 /200 8 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 1 /31 /200 9 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 3 /31 /200 9 3 /31 /200 9 9 /30 /200 7 1 2/31 /200 8 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 1 2/31 /200 7 3 /31 /200 9 3 /31 /200 9 1 2/31 /200 8 3 /31 /200 9 9 /30 /200 8 1 2/31 /200 8 3 /31 /200 9 3 /31 /200 9 1 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 8/2/2008 1 2/31 /200 8 3 /31 /200 9 3 /31 /200 6 3 /31 /200 9 2 /28 /200 9 3 /31 /200 9 1 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 NA 3 /31 /200 9 1 2/31 /200 7 1 2/31 /200 8 3 /31 /200 9 AC LZ A0 527 90 38 38 AS MH BS GC B W AV B Y OC AIM :B G T BW BA C HIN .A C Y OU CGW Y G T S M:308 3 C WR L T S X:C X C M:D A DX N DIB Z DG LP DG T W DP DM A0 410 60 E XT I F NG P T S X:F MN F RG 61 80 38 12 G E O1 V GA G IG M GR VY T S E : 363 2 37 65 A0 470 80 IAC I IAS C.A IE E AS X:J MB T S X:J T V T S X:K AB 38 88 T S XV : LM LV WD LOOK MA G Y 21 21 MT G B MM OG MK B MY R N A0 956 60 77 7 NT E S NX P C 24 97 59 005 7 OT E X OP W V PW R D T S XV : P N QP S A R BCI S N DA S F LY A0 662 70 S T VI S N MN S MV I S C LW S OHU S T PC LOV S P XA 70 0 K ID S .Q NCT Y TSCM T OS O TR EE T S XV : US S U NT D U OMO V C LK V OIS W ZE N W ZE W DD D W YND O1B C A0 527 70 A0 237 70 T S XV : ZIP
E xc hange
OT C B B K OS E TSE OT C P K OT C B B OT C B B OT C B B AIM OT C P K N as da qG S N as da qG S OT C P K GTSM OT C B B TSX CM KLSE OT C P K OT C B B OT C B B OT C B B K OS E OT C P K OT C B B TSX XT R A GTSM TSE H LS E NYS E N as da qG S N as da qG M TSE OS E K OS E N as da qG S OT C B B T S XV AS X TSX TSX S E HK T S XV OT C P K N as da qG M OT C B B TSE OM OT C B B AS X SWX K OS E S E HK N as da qG S OT C P K TSE BS E N as da qG S N as da qG S N as da qG S T S XV N as da qC M R TS N as da qG S N as da qG S K OS E OT C B B OT C P K OT C P K OT C B B N as da qG S OT C B B AME X OT C B B S E HK OT C P K N as da qG S N as da qG M OT C NO N as da qG M T S XV N as da qG S OT C B B N as da qG S OT C B B N as da qG M AME X OT C B B OT C B B XT R A K OS E K OS E T S XV
Trading Currenc y HQ
US D KR W J PY US D US D US D US D GB P US D US D US D US D TWD US D C AD EUR MY R US D US D US D US D KR W US D US D C AD EUR TWD J PY EUR US D US D US D J PY J PY KR W US D US D C AD AU D C AD C AD HK D C AD US D US D US D J PY S EK US D AU D CHF KR W HK D US D US D J PY INR US D US D US D C AD US D US D US D US D KR W US D US D US D US D US D US D US D US D HK D US D US D US D NOK US D C AD US D US D US D US D US D US D US D US D EUR KR W KR W C AD U nited S ta tes S outh K orea J apan U nited S ta tes U nited S ta tes U nited S ta tes U nited S ta tes U nited K ingdom U nited S ta tes H ong K ong C hina U nited S ta tes T aiwan U nited S ta tes C ana da Ita ly Ma la ys ia U nited S ta tes U nited S ta tes U nited S ta tes U nited S ta tes S outh K orea U nited S ta tes U nited S ta tes U nited S ta tes G ermany T aiwan J apan F inland C hina T aiwan S outh K orea J apan J apan S outh K orea U nited S ta tes C ana da C ana da Aus tra lia C ana da C ana da C hina C ana da U nited S ta tes U nited S ta tes U nited S ta tes J apan S weden U nited S ta tes Aus tra lia S witzerla nd S outh K orea C hina C hina U nited S ta tes J apan India C ana da U nited S ta tes C hina C ana da U nited S ta tes R us s ia C hina U nited S ta tes S outh K orea U nited S ta tes U nited S ta tes U nited S ta tes U nited S ta tes C hina U nited S ta tes U nited S ta tes U nited S ta tes C hina U nited S ta tes C hina U nited S ta tes N orwa y U nited S ta tes C ana da U nited S ta tes C ana da U nited S ta tes U nited S ta tes S outh K orea U nited S ta tes U nited S ta tes U nited S ta tes G ermany S outh K orea S outh K orea C ana da
Cu rr ent P ric e
0 .35 32, 500 75 ,000 .00 0 0 .03 0 0 .95 0 0 .30 1 38 .70 0 366 .00 0 1 .50 6 0 .39 0 0 .02 3 0 .60 700 0 .15 0 0 .70 8 55 .80 1 16, 700 0 .05 9 6 .16 1 6 ,430 .00 2 49, 700 4 ,790 .00 16 0 .20 0 0 .42 1 0 .61 5 1 .00 0 1 .33 0 455 ,000 .00 213 2 .30 0 5 .20 71, 500 5 .31 37 0 .70 32, 000 54 .20 34 1 .89 23 1 .60 1 1 .35 62 13 .45 11, 000 0 .75 0 0 .01 1 66 .90 3 2 .31 0 89 .60 0 11 .12 2 0 .03 12 0 .05 7 0 .18 12 0 .35 4 0 .67 0 0 .51 31 9 ,670 .00 7, 000 0 .01
U S D Market C ap ($m)
9 .7 22 1.6 4 1.4 0 .9 1 .4 2 .9 4 2.2 4 .1 2 5.3 15 8.1 2,1 28.5 0 .0 93 7.2 5 .8 8 4.1 12 8.2 2 5.6 0 .0 1 .2 6 7.7 3 1.0 4 0.6 1 4.2 0 .2 3 2.7 2 5.6 25 8.1 11 4.5 6 2.3 2,0 37.2 33 2.8 3 2.0 1,4 57.2 29 0.2 8 3.8 2,4 46.3 1 4.0 3 .2 1 6.3 7 4.9 7 6.0 76 8.4 1 1.5 7 .7 2 2.7 4 .6 70 9.8 1,7 85.0 8 3.5 4 .5 10 1.4 54 9.5 36 2.1 4,6 13.2 3 9.0 4 0.1 3 9.8 1,8 08.1 15 7.4 1,1 57.2 4 8.8 8 .9 18 7.3 4,2 76.8 33 8.6 36 8.1 8 .1 0 .0 0 .0 3 0.8 2,5 59.9 2 8.2 4 7.5 1 8.0 20,8 43. 8 0 .5 29 8.2 5 9.4 0 .1 12 8.4 1 .1 57 9.2 1 5.4 1,0 10.6 2 .9 4 7.6 3 2.0 5 .2 9 .2 22 8.3 12 1.2 2 9.9 0 .4 20,8 43. 8 0 .0 590.6 4 8.2
U S D LT M To tal R ev ($m)
4.1 92. 2 61. 2 0.1 0.1 8.4 7.1 0.3 0.0 389 .9 222 .5 6.7 56. 2 1.3 72. 5 235 .2 78. 6 NA 0.7 NM 0.8 14. 7 NM 7.2 5.0 5.6 126 .2 74. 7 5.9 218 .9 190 .4 39. 1 29. 8 104 .6 55. 1 1 ,40 6.4 0.0 1.3 14. 1 13. 4 73. 3 129 .0 0.9 11. 4 60. 7 0.1 122 .3 1 ,71 6.0 NM 1.1 40. 0 197 .7 86. 9 470 .3 NM 99. 8 117 .9 782 .6 197 .2 228 .0 19. 3 0.1 150 .8 569 .8 215 .2 183 .8 3.3 2.0 0.1 0.0 460 .0 NM 54. 3 0.1 1 ,20 2.9 112 .0 249 .8 67. 0 2.1 215 .6 23. 2 811 .2 0.6 591 .7 0.0 23. 0 5.6 0.0 NA 52. 5 54. 7 11. 4 2.7 1 ,716 .0 0.0 150 .8 54. 3
US D L TM T otal E B ITDA ($m)
(4 .4) 2 0.0 4 .9 (2 .3) (2 .0) (1 2.6) (9 .5) (1 .8) (4 .6) 3 0.8 13 5.1 (6 .6) 3 1.5 NM 7 .5 3 7.6 1 0.8 NM (2 .6) (3 .0) (3 .7) (3 .5) NM 2 .4 (6 .9) (3 .4) 2 1.0 1 7.7 (1 5.2) NM 4 6.0 7 .5 1 0.7 1 8.8 (1 4.8) 4 2.6 (0 .8) (5 .3) 5 .2 (8 .4) 8 .7 5 2.0 (1 .6) (0 .0) (3 .8) (3 .1) 4 3.3 26 2.9 NM (2 .3) 0 .8 5 3.1 3 4.4 30 5.7 (4 .9) 3 0.7 (2 7.7) 19 9.2 (2 .1) 12 4.5 0 .5 (1 0.8) 1 9.7 26 0.8 2 8.3 1 2.0 0 .9 (0 .7) (0 .1) (4 .8) 20 0.5 (1 .1) 1 1.8 (2 .6) 57 6.4 (1 3.5) 8 4.1 1 .9 (1 .0) (1 3.3) 0 .1 17 7.3 (0 .5) 10 5.5 (1 .1) (0 .4) (5 .1) (0 .8) NM 1 6.4 1 2.2 1 .2 (2 .1) 57 6.4 -27.7 32 .9 0 .8
E BITD A %
NM 21 .7% 8 .0% NM NM NM NM NM NM 7 .9% 60 .7% -9 8.9% 56 .0% NM 10 .3% 16 .0% 13 .7% NM NM NM NM -2 3.6% NM 34 .1% NM -6 0.6% 16 .6% 23 .7% NM NM 24 .2% 19 .2% 36 .0% 18 .0% -2 6.8% 3 .0% NM NM 37 .2% -6 2.6% 11 .9% 40 .3% NM -0 .4% -6 .3% NM 35 .4% 15 .3% NM NM 1 .9% 26 .8% 39 .5% 65 .0% NM 30 .8% -2 3.5% 25 .5% -1 .0% 54 .6% 2 .3% NM 13 .1% 45 .8% 13 .2% 6 .5% 28 .0% -3 4.8% -6 0.5% NM 43 .6% NM 21 .7% NM 47 .9% -1 2.0% 33 .7% 2 .9% -5 0.6% -6 .2% 0 .2% 21 .9% -7 8.2% 17 .8% NM -1 .9% -9 1.5% NM NM 31 .2% 22 .4% 10 .5% -7 8.3% 65 .0% -9 8.9% 6.3% 14 .2%
TE V/LT M R evenu e
3.5 x 2.1 x 0.2 x 19.2 x 37.4 x 6.6 x 15.3 x 0.4 x 8.7 x 0.0 x 15.5 x 5.5 x 1.1 x 0.8 x 0.5 x 3.9 x 41.4 x 2.9 x 4.6 x 4.5 x 1.9 x 0.7 x 9.9 x 1.4 x 46.2 x 2.5 x 1.2 x 0.4 x 1.1 x 0.8 x 4.2 x 1.1 x 5.5 x 11.3 x 0.6 x 4.9 x 1.4 x 3.0 x 2.8 x 2.7 x 2.6 x 0.3 x 2.4 x 0.3 x 0.1 x 2.5 x 0.0 x 0.2 x 1.3 x 2.0 x 2.0 x 1.1 x 0.0 x 4.8 x 0.9 x 18.9 x 0.2 x 4.6 x 0.6 x 0.2 x 1.1 x 24.8 x 1.5 x 6.0 x 3.4 x 2.4 x 2.6 x 0.6 x 46.2 x 0.0 x 5.4x 2.0 x
T E V/LT M E B IT DA
9.6x 2.5x 5.6x 1 4.4 x 2 7.7 x 1 0.7 x 4.7x 3.8x 1 1.2 x 3.1x 5.6x 1 4.0 x 1 3.2 x 2.2x 9.3x 1 3.7 x 1 3.7 x 8.9x 1 0.2 x 6.5x 9.4x 0.1x 0.3x 0.5x 9.6x 3 0.8 x 7.2x 1 0.9 x 4.1x 3 9.3 x 4.9x 8.6x 1 0.8 x 1 0.7 x 2 4.3 x 3 9.3 x 0.1x 10.3x 9.4x
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 ) June starts well: The first week of June started well, with a total of $47.6 million raised in eight transactions. It was led by Sugar Inc. raising $16.0 million, closely followed by Grab Networks raising $12.0 million. All other transactions were less than $10 million. The average value for the first week of June is $6.0 million, slightly below the average value for May of $6.4 million (excluding the $200 million investment in Facebook) on 16 financings. The April average was $6.2 million on 23 financings.
Financing Activity Last Three Months
160.0 7.0
6.2 140.0
6.4 6.0 6.0
120.0 5.0
100.0 4.0 (US$m) 80.0 3.0 60.0 (US$m) 2.0 40.0 1.0 0.0 Apr-09 May-09 (excl FB) Total Average Jun-09
20.0
0.0
Figure 2. Financings, Last Three Months Source. Company reports
Sugar Inc. leads capital raise: The capital raise from Sugar Inc. for $16 million was the largest deal for the first week of June. Two of the eight deals last week were greater than $10 million. For additional details, see Figures 23 and 24 (at end of note).
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Financing & M/A Summary - Last Three Months
250.0
200.0
150.0 (US$m) Jun-09 May-09 Apr-09 100.0
50.0
0.0 Facebook StumbleUpon One Net Entertainment Collective Media Sugar Inc. GOOM Radio Marin Software The Rubicon Project Cyberplex Grab Networks FreeWheel Peer39 OpenX Cellufun Conductor Inc. Imeem EveryZing ScanScout beeTV Batanga WonderHill BlogHer Inc. Gist Fuhu Inc. Azuki Systems I Love Rewards DocuSign DoubleTwist Viximo OLX TimeBridge IMShopping Socialtext GameGround Mixercast Medialets RingRevenue SoundCloud TubeMogul Tribal Nova my6sense Tripbase Resonate Networks Mo'Minis VoxPop Cliqset Socialcast Brandtology Scan & Target Jodange Loop'd Network Foodista MashLogic
Figure 3. Capital Market Activity, Last Three Months Source. Company reports
Social Network remains the most active sector in dollars raised; w hile Ad Netw ork remains the most active in number of transactions: Following recent trends, Social Networks as a sector saw the most activity in dollars raised ($221.1 million), largely attributed to the $200 million investment by Digital Sky Technologies in Facebook. However, it was the Ad Network sector that saw the most transactions (11), raising $98.5 million (Figure 4). The Media sector has the next highest totals, with six companies raising $45.8 million. The following sectors continue to generate the most capital activity over the last few months: Ad Network, Media, Gaming, and Social Networks.
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Capital Market Activity by Sector - Last Three Months
250.0
200.0
150.0 (US$m)
221.1 100.0
50.0
98.5 45.8
33.0 Gaming
30.2 Comment/Reputation
24.0 Video
23.0 Blog
18.3 Search
14.5 Virtual World
Social Commerce
0.0 Media Social Networks Ad Network
10.4 Widget
9.0 Infrastructure
6.8 Aggregation
5.9 Enterprise
5.0 Collaboration
4.7
4.4 Analytics
2.0 Mobile
2.0 Travel
1.3 SAS
0.6 Wiki 1
# companies
7
11
6
5
2
2
2
2
3
2
3
1
1
1
1
2
1
1
1
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 ) Web 2.0 index outpaces NASDAQ recovery: Our W eb 2.0 index (market-cap weighted) essentially mirrored the performance of the NASDAQ composite index from mid-2008 until recently. However, the index has recently had a much stronger recovery relative to the NASDAQ index (Figure 5).
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Web 2.0 Index Price Performance
95.0
85.0
75.0
65.0
55.0
45.0
Index: Web 2.0 X (Market Cap Weights)
^COMP - Share Pricing
Figure 5. Web 2.0 Price Performance Source. Capital IQ
A mixed price performance week: The companies in our universe had relatively strong stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with 20 companies showing positive returns on the week. Actoz Soft Co. (A052790:KOSE) led the group with a 23.6% return, while CDC Corp. (CHIN.A:NASDAQ) had the worst return, dropping 12.4% in the week.
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1 Week P rice P erformance
A ctoz S of t Co., Ltd. The9 Limited Northgate Technologies Limited G ree, Inc. Giant Interactive G roup, Inc. Tree.Com, Inc. Changy ou.com Limited Frogs ter Interactiv e Pictures A G Neteas e.com Inc. Tencent Holdings Ltd. K ings of t Co. Ltd. G ravity Co., Ltd PhotoChannel Netw orks Inc. V alueClick Inc. S handa Interactive Entertainment Ltd. LookS mart, Ltd. Openw ave S y s tems Inc. S ohu.com Inc. S park Netw orks , Inc. Perfect World Co., Ltd. United Online Inc. -0.4% G igaMedia Ltd. -0.5% Mix i, Inc. -0.7% -1.0% TheS treet.com, Inc. -2.0% NetDragon WebS of t, Inc. -2.2% IA C/InterA ctiveCorp. Chines e Gamer International -2.8% Eolith Co. Ltd. -3.4% Open Tex t Corp. -3.7% -4.1% DA DA S pA -4.5% Cy berplex Inc. -4.8% Gamania Digital Entertainment Co., Y edangOnline Corp. -5.2% G ameOn Co Ltd. -5.9% A Q Interactiv e, Inc. -6.3% XING A G -7.3% -7.3% NEOWIZ Games Corporation -7.8% Ngi G roup Inc. -8.3% S K Communications Co., Ltd. Modern Times G roup Mtg A B -8.6% Y nk K orea Inc. -9.1% HanbitS of t, Inc. -9.5% -10.8% Webz en Inc. -11.1% S hutterf ly , Inc. CDC Corp. -12.4% -15.0%
Figure 6. 1-Week Price Performance Source. Capital IQ
23.6% 20.0% 15.2% 14.2% 14.0% 10.8% 8.2% 5.4% 4.7% 4.7% 4.6% 4.5% 3.9% 3.1% 2.3% 2.3% 1.9% 1.0% 0.9% 0.4%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
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INDUSTRY NEWS (PARTNERSHIPS, FINANCIAL RESULTS, NEW PRODUCTS)
K ey Developments
C ompany
is eemedia Inc . (T S XV: IE E )
Headline
Notes
iseemedia Inc. R eports U na udited C onsolida ted E a rni ngs iseemedia Inc. reported una udited consol ida ted earnings res ults for the third quarter a nd ni ne months ended M arch 31, 2009. F or the quarter, the c ompany has pos ted net los s of CA D 996,942 or C AD 0. 02 ba s ic a nd diluted loss per s hare on revenue of C AD 489,621 R es ults for the T hird Q ua rter a nd Nine Months E nded compared to net loss of CAD 1, 343, 792 or C AD 0. 03 basic and diluted los ses per s ha re on revenue of C AD 300,250 for the s ame period a Ma rc h 31, 2009 yea r ago. Loss before other items wa s CAD 1,004, 798 compa red to C AD 1, 402,822 for th e s a me period a y ea r a go. C ash us ed in operating a ctivities was C AD 849, 142 compa red to CAD 981, 570 for the same period a yea r a go. P urchase of property a nd equipment wa s CAD 4, 391 compared to CAD 5, 741 for the same period a year ago. F or the nine months, the compa ny ha s pos ted net los s of C AD 4,109, 295 or C AD 0.08 bas ic and diluted loss per s hare on revenue of C A D 1,334, 463 compa red to net loss of CAD 3, 532,705 or CAD 0. 03 ba s ic a nd diluted los ses per s ha re on revenue of CA D 1,062, 182 for the same peri od a year ago. Loss before other items wa s CA D 4,151, 076 c ompa red to C AD 3, 731,644) for the s ame period a y ear ago. C a s h used in opera ting activities wa s CAD 3, 451,661 c ompa red to C AD 3,299, 967 for the sa me period a yea r a go. P urchase of property a nd equipm K a pital ha s filed a la ws uit a ga ins t O AO R B C I nformation S y stems. The cla ims total R U B 69.50 mi llion (E U R 1.60 million, US D 2.25 million). T he rea son for the c laims being lodged is R B C Information S ys tems ' not fulfilling its obligations for pa y ment of the coupon yiel d and the commercia l paper offer (R UB 1.5 billion) in time.
OA O R BC Info rm atio n S ys tem s (R TS : R B CI) B arc lays Private E quity Ltd. ; B ounty L td.; Kaboo s e Inc . (TS X: K AB )
K a pital S ues O A O R B C Informa tion S ys tems
B a rcl ays P riv ate E quity L td. c ompleted the a cquisition o f B a rclay s P riv ate E quity L td. entered into a n a greement to a cquire B ounty Ltd. from K a boose Inc . (T S X : K AB ) for £54 million on M a rch 31, B ounty Ltd. from K a boos e I nc . (TS X : K AB ). 2009. T he purc ha se cons idera tion is s ubject to certa in adjustments . In a rela ted trans a ction, D isne y O nline a greed to ac quire the I nternet a ss ets from K a boose Inc . (T S X: K AB ) for CAD 23. 3 million. I n the event of termination, K aboose Inc. s ha ll pay to B arcla y s P riva te E quity a termina ti on fee of £0. 9 million. C los ing of tra ns action is conditional on obtaining K aboos e sha reholder a pprova l a nd other cus toma ry conditions, including rece ipt of a ny necess ary regula tory approv al. T he B oard of Direc tors of K a boos e I nc. have una nimous ly approv ed the trans action. T he dea l is expec ted to c los e within 60 da y s. B rian P uk ier, J effrey E lliott, Y ous ef R ehma n, Anne W eintrop, S a ndy W alk er, B ruce P ollock, J onatha n D everill, G avin Neale a nd J ohn R owla nd of S tik ema n E lliott L LP ac ted a s the legal a dv isors to K aboose. G M P S ecurities , L td. a nd Allen & C ompany a cted as fina nc ial a dvis ors to K aboos e I nc. P hil S a nders on a nd J ames R enahan of T ra vers S mith a cted as the legal advis ors for B a rc la ys P riva te E qui ty Ltd.
P erfec t World C o. , Ltd. (Nas daqG S : PW R D)
Upda te to P erfect W orld Co. , Ltd. 's E quity B uyback on J une 1, 2009
O n J une 1, 2009, P erfect W orld Co. , Ltd. announced tha t it ha s entere d into an a greement to repurchas e a tota l of 1, 203,812 s hare s of its Cla s s A ordinary sha res and 11, 296,188 sha res of its C la s s B ordinary s hares for $52. 4 million from S B Asia Inves tment F und I I, L . P .
S ites earc h Co rporation (OT CB B :S T P C) S ites ea rch C orporation Appoints J orge De L os S a ntos as E ffectiv e J une 1, 2009, S ites earch C orporation exec uted an employ ment agreement with J orge de los S a ntos pursuant to which M r. de los S enior V ice P resid ent S a ntos will s erv e as the c ompany's s enior vice pres ident. T he a greement is for an initial one y ea r term unles s te rmina ted by either party a nd ma y be extended by mutua l a greement between the c ompa ny a nd Mr. de los S antos . Dis ney Online; K abo os e Inc . (T S X:K AB); Kaboo s e In c., Intern et A s s ets Dis ney O nline completed the ac quis ition of I nternet a ss ets from K a boose Inc . (T S X : K AB ). Dis ney O nline a greed to ac quire the Internet ass ets from K aboose I nc. (T S X : K AB ) for C AD 23. 3 million on Ma rc h 31, 2009. The purchas e cons ideration is s ubject to certain a djustme nts . The as sets will be integrated into D is ney O nline’s extens ive line-up of web s ites. I n a related trans action, B a rclays P rivate E quity L td. a greed to a cquire the UK operations of K aboos e I nc. for £54 million. I n the event of termina tion, K a boose Inc . s ha ll pay to Dis ney O nline a termina tion fee of C A D 0.47 mil lion. Clos ing of tra ns action is conditiona l on the c los ing of the B ounty transaction, obta ining K aboos e s hareholder a pprov al, c ourt approva l a nd other cus tomary c onditi ons, including receipt of a ny neces sary regula tory approval. The B oard of Directors of K aboose In c. hav e unanimous ly approv ed the tra nsac tion. The dea l is expec ted to c lose within 60 da ys . B ria n P uk ier, Jeffrey E lliott, Y ous ef R ehma n, Anne W eintrop, S a ndy W a lk er, B ruc e P ol lock , J o nathan Dev erill, G avin Nea le a nd J ohn R owla nd of S tik ema n E lliott LL P acted a s the lega l a dvis or to K a boose. G M P S ecurities, L td. and Allen & C ompa ny a cted a s financia l a dv isors to K aboose I nc. Openwave S ys tems Inc . (Nas daqG S : OPW V) O penwa ve S y stems Inc. La unches Mobi le Ana ly tics 7. 0 O penwa ve S y stems Inc. announced the la unch of O penwave M obile Analy tics 7. 0, a solution that provides deep ana lytics a nd rich reporting for mobil e devices , inc luding fea ture phones , sma rtphones, netbook s and other mobile devices . O penwav e M obile Analy tics 7. 0 is designed to help c arriers better understand mobile data us a ge, s egmented by v arious s ubscriber demogra phic s, peak usage times , a nd identify data cons umption patterns tha t ultima tely ca n help a n opera tor better price a nd deliver ta rgeted content to us ers, as well as better optimize their network ba ndwidth. O penwav e M obile A na lytics 7. 0 empowers opera tors with the ability to better monitor, manage and moneti ze various ty pes of mobile da ta traffic inc luding mobile internet, mes sa ging and socia l network ing usage, to better unders tand consumptio n patterns a nd us er demogra phic s. T he product prov ides ea rly identifica tion of mobile data trends , ena bling opera tors to ma k e timely decisions to avoid bandwidth and ca pa city problems a nd target busi ness opportuniti es while increas ing revenues . The offering's bus iness in telligence a nd reporting capabilities not only desc ribe what is ha ppening in a n opera tor's network , but a ls o prov ide insight a s to why it is happeni ng and what B eyond Commerce, I nc. announced tha t its i -S UP P LY divis ion concluded its phas ed rol l-out to more than 5, 000 pre-s old licens ees . T he firs t 5,000 stores , now on W eb sites belonging to members of L ocalAdL ink 's independent s ales force, hav e s ucces sfully la unched on s chedule. B eyond Commerce estimates that it will crea te tens of thousa nds more storefron ts over the nex t 120 da ys . T he i-S UP P L Y widget store a llows W eb properties to monetize exis ting traffic by s impl y cutting and pa sting a few lines of code to ins ta ntly create a s torefront on their site. P a rticipa ting W eb properties a re able to choose from mil lions of brand name products at ev eryday low pric es a nd cus tomiz e the look a nd feel of their storefront. i-S U P P LY crea tes a hass le free va luable ass et for W eb site owners by ha ndling merc ha ndis e s election, pric ing, cus tomer support, billing and s hipping for any sales genera ted by the i-S U P P L Y widget. T he i-S UP P L Y widget store has crea ted a n a dditional revenue s tream for B eyond C ommerce, which will grow exponentially in 2009. This ra pid growth will further ex tend the reac h of L ocalAdLink 's proprietary a d network . S handa I nterac tive E ntertainment L td. a nnounced una udited c onsolidated ea rnin gs results for the firs t qua rter ended M a rch 31, 2009. F or the quarter, reported net revenues of C NY 1, 107.1 million ($162. 0 million), repres enting an increa s e of 42.0% from C N Y 779. 8 million y ear-ov eryea r. O perating income wa s MY R 455.7 milli on ($66. 7 million), repres enting a 46.0% increa s e from C N Y 312. 1 million in the firs t qua rter of 2008. Net inc ome was CN Y 361.0 mill ion ($52. 8 million), compa red with C N Y 288. 8 million in the firs t qua rter of 2008. E arnings per diluted ADS in the firs t quarter were C N Y 5.28($0. 78), compa red with C NY 3. 94 in the first quarter of 2008. Non-G AAP net income was C N Y 374. 7 million ($54. 8 million), an increas e of 23.2% from CN Y 304. 2 million in the firs t quarter of 2008. Non-G AAP earnings per diluted AD S were CN Y 5. 48($0.80) compared with C NY 4. 14 in the first qua rter of 2008.
B eyond Commerc e, Inc . (OT CB B: B Y OC)
B eyond Commerce, Inc. Announces S ucces sfull La unch of its i-S upply Div is ion ov er 5, 000 W idget S tores
S handa Interactive E ntertainment L td. (Nas daqG S : S NDA)
S handa I nteractive E ntertainment L td. Announces Unaudited Cons olidated E a rnings R esults for the F irst Q uarter E nded Marc h 31, 2009
Page 9
Qu epas a C orp. (Nas daqC M: QPS A)
Quepasa T o V olunta rily De-Lis t S tock ; F ile F orm 15
Quepasa Corpora tion announced tha t i t intends to voluntarily de-list the Compa ny's common s tock from the NA S DAQ S toc k M a rket. Quepasa’s C E O, J ohn A bbott s a id: "A voluntary delis ting from NAS D AQ is the bes t cours e of action for the Company to ta ke at this time given the ma ny growth initia tiv es the C ompa ny i s currently exec uting. T his a ction allows us to focus our efforts on growing the busines s on a globa l s ca l e and building for p rofita bility . W e are enthusia s tic with the improv ement and growth in our core busin ess metrics - our ex ponentia l growth in new users , our increas e in pa ge views a nd unique vis its and new growth in rev enues. W e believ e we ca n better focus on a cc elera ting these metric s if we volunta rily de-lis t fro m NAS D AQ . " I n April, NAS DAQ notified the C ompany tha t it was not in c omplia nce with Ma rk etplac e R ule 4310(c)(3), which requires the C ompany to ma intain a minimum of: (i) $2, 500,000 million in s tockholders ' equity, or (ii) $35,000, 000 in market va lue of listed s ecurities , or (iii) net inc ome from continuing opera tions of $500, 000 in the most recently completed fis cal year or in two of the la s t three most rec ently completed fisca l years , as required by NAS D AQ M ark etplac e R ule 4310(c)(3). T he C ompan
A pple Inc . (Nas daqG S : AAPL ); W izzard S oftware C orporatio n (AME X: W ZE )
W izz ard M edia Ac quires D istribution R ights to S ix iP hone W izza rd M edia announced the a cquis ition of the ex clus ive dis tribution rights to s ix iP hone Apps. T hes e Apps a re currently for s a le through Apps Apple's App S tore for use on i P hones a nd the iP od T ouch inc luding: B lue Attack , OmNomN om, S udoku Unlimited, Touc hS ca n, B lue Defense a nd S udoku C la s si c. B a s ed on c urrent sale s figures , W izz ard es timates these Apps will generate over $228, 000 in a nnua l revenues , after the sta ndard deduc tion of A pple's 30 % , for the c ompa ny before a ny increas ed s ales from ma rketing the Apps via the W iz zard P odcas t N etwo rk to iP hone and iP od Touc h users . T hrough a dv ertis ing and ma rketing by W iz za rd's thousands of podca s t producers to their highly engaged audience of iP hone a nd iP od users , W iz zard believes s ales could be s ignifica ntly highe r on an annual ba si s. T he c ompany pla ns to continue to ac quire the rights for up to 100 alrea dy la unched and approved i P hone Apps to provide podcas t produc ers with a continuous s tream of fres h, pa id advertising for their epis odic s hows , app developers with increa s ed s a les revenues a nd prov ide for profitable App s ales for W izz a rd. K a boos e I nc. F iles Articl es of Amendment K a boose Inc . a nnounc ed that in connec tion with the previous ly a nnounc ed c ompletion on J une 1, 2009 of (i) the s ale of its U K subs idia ry, K a boose Acquisition (U K ) C ompany, to R omeo B idc o Limited and (ii) the s a le of s ubs tantia lly all of its N orth American a s sets to D isney Online, K a boos e I nc. has filed a rtic les of a mendment under the B usi ness C orporations Act (O ntario) and ha s c ha nged its name to K AB Dis tribution Inc . S ocia lwise I nc. la unched B illMy P arents an innova tiv e online youth pa y ment sy stem that giv es teens the freedom to shop online and pa rents the control over thes e purchas es-a ll in a s imple, a utomated s ys tem that k eeps credit card numbers a nd other persona l information s afe a nd sec ure. E ffectiv e J une 1, 2009, S ites earch C orporation exec uted an employ ment agreement with J im Dix on, pursua nt to which M r. Dix on will s erve a s the c ompa ny ’s V ice P res ident. T he a greement is for a n initial one y ear term unles s termina ted by either party and ma y be ex tended by mutual agreement between th e c ompany a nd M r. Dixon. P NI D igita l M edia reported tra nsac tion v olumes for the th ird qua rter of fis cal 2009. F o r the period, the compa ny record 2, 299,923 orders have been tra nsac ted v ia the P N I D igital Media P latform thus far this quarter. T his represents a 134 % increa se in orders over the c ompara ble period of fis cal 2008 and the 26th s tra ight quarter of reco rd orders tra nsac ted wh en comparing yea r over y ea r s ame qua rters. T o date the a vera ge daily order volume is 36, 507, c ompa red to 15, 626 for the same peri od of fisca l 2008. Overall reta il s ales proc ess ed through the P NI Digita l M edia P latform for reta il partners s how a n inc rease of ov er 200% compa red to the c ompa ra ble period in fiscal 2008. O rganic growth of retail pa rtners on the P NI D igital Media P la tform c ontinues to be very s trong, up a n aggregate 20% y ea r over yea r. Digita lP ost Intera ctive I nc. a nnounc ed it has launched the F ileS a fe, a new produc t tha t will be av ailable with in their critica lly a cclaimed family webs ite platform. FileS afe is a n onli ne bac kup and a rc hiv al s ys tem that will ena b le a ll cons umers to s tore and s ecure any type of electronic file, from a word document to a P D F, E x cel sprea ds heet, etc. , within an ea sy to use, drag a nd drop interfa ce that is as simple a s sending an email. F rom the same adminis tra tive area where cus tomers downloa d ima ges and videos , they will now be a ble to uploa d ma ny differen t critica l doc uments , preserv ing and protecting them for a lifetime. L ookS mart, L td. has filed a S helf R egis tra tion in the amount of $0. 05 million. On J une 4, 2009, TheS treet.c om, Inc . a ppointed G regory B arton a s E xecutiv e V ic e P resident, B us iness a nd Lega l Affairs , G enera l C ounsel a nd S ec retary . Mr. B arton had s erved a s G eneral Couns el and S ec retary of Ma rtha S tewart L iving Omnimedia , I nc. from 2007-2008; and previous ly serv ed as E xecutiv e V ic e P resident, Licensing a nd Leg a l Affairs , G enera l C ouns el and S ecreta ry (from 2004-2007) a nd as E xec utiv e V ic e P resident, G eneral Couns el a nd S ec retary (from 2002-2004) of Ziff D a vis M edia I nc. On J une 4, 2009, Teres a S antos c ea s ed to serve as G eneral C ounsel a nd S ecretary of the c ompa ny .
K aboo s e Inc. (T S X:K AB)
S ocialwis e, Inc. (OT CB B: S CL W)
S oci a lwis e L aunc hes B illM yP a rents P ayment S y stem to W ide P ubli c Interest a nd Ac clai m
S ites earc h Co rporation (OT CB B :S T P C) S ites ea rch C orporation Appoints J im Dix on a s V ic e P resi dent P hotoC han nel N etworks Inc. (T S XV: PN) P NI Digita l M edia R eports T ra ns action V olumes for the T hird Qua rter of F isc al 2009
DigitalPo s t Interac tive, In c. (OT CB B: DG L P)
Digita lP os t Intera ctiv e I nc. La unches F ileS afe
L ookS mart, L td. has filed a S helf R egis tra tion in the a mount of $0.05 million. T heS treet.c om, Inc . (Nas daqG M: T S CM) T heS treet.com, Inc. Announc es Ma nagement C hanges L o okS mart, Ltd. (Nas daqG M: LOOK )
P hotoC han nel N etworks Inc. (T S XV: PN) S park Networks , Inc . (AME X: L OV)
P hotoC ha nnel Network s Inc . wi ll C ha nge its N a me to P N I E ffectiv e J une 08, 2009, P hotoC ha nnel N etworks Inc. will c ha nge its na me to P N I D igital Media I nc. Digita l Media Inc S park N etwork s , Inc . , Annual G enera l M eeting, J un 08, S park Network s, Inc ., Annual G enera l Meeting, J un 08, 2009, at 09:00 P a cific D a ylight. L oc ation: 8383 W ils hire B oul eva rd, S uite 800, 2009 B everly H ills, C A 90211, United S ta tes. Agenda : To elec t two members to the board of directors to s erve for three-yea r terms ; to ratify the a ppointment of E rns t & Y oung L LP as the indep endent registered publ ic a cc ounting firm of the c ompany for the yea r ending December 31, 2009; to vote on a stock holder proposal recommending tha t our board of directors a dopt a policy that the C hairman of the B oard be a n independent director who has not previous ly s erved as a n ex ecutive officer of the compa ny ; to vote on a stock holder proposa l rega rding the decla s sific ation of the board of directors ; a nd to trans a ct such other bus ines s a s ma y properly come before the meeting or any adjournments thereof.
Figure 7. Key Developments Source. Capital IQ
Page 10
VALUATION Online Gaming companies lead market-cap charts: Eleven companies in our W eb 2.0 universe top US$1 billion in market capitalization (Figure 8). Sixty of the 93 companies have market caps under US$100 million, with 23 under US$10 million. Online gaming companies dominate the top of the list, led by Tencent Holdings with a market cap over US$18 billion.
Market C ap (US D m)
Tencent Holdings Ltd. Neteas e.c om Inc . S handa Interactiv e Entertainment Ltd. S ohu.c om Inc . IA C/InterA c tiveCorp. Changy ou. com Limited Giant Interactiv e Group, Inc . Open Tex t Corp. Modern Times G roup Mtg A B G ree, Inc . Perf ec t World Co. , Ltd. V alueClick Inc . Chines e G amer International K ings of t Co. Ltd. Mix i, Inc . United Online Inc . NEOWIZ G ames Corporation S K Communic ations Co. , Ltd. NetDragon WebS of t, Inc . S hutterf ly , Inc . GigaMedia Ltd. The9 Limited G ungHo Online Entertainment, Inc . G amania Digital Entertainment Co. , XING A G A c toz S of t Co. , Ltd. OA O R B C Inf ormation S y s tems CDC Corp. Openw av e S y s tems Inc . Tree. Com, Inc . DA DA S pA Y edangOnline Corp. G ameOn Co Ltd. Myriad G roup A G Cy berplex Inc . HanbitS of t, Inc . Moggle, Inc K aboos e Inc . J umpTV Inc . DigitalTow n, Inc . G eoS entric Oyj TheS treet. com, Inc . PhotoChannel Netw orks Inc . Webz en Inc . S park Netw orks , Inc . B ey ond Commerc e, Inc . A Q Interactiv e, Inc . Eolith Co. Ltd. Ngi G roup Inc . Northgate Tec hnologies Limited NeXplore Corporation Fluid Mus ic Canada, Inc . Wiz z ard S oftw are Corporation G rav ity Co. , L td Dolphin Digital Media, Inc . S oc ialw is e, Inc . Y nk K orea Inc . S ites earch Corporation Frogs ter Interactiv e Pic tures A G DXN Holdings B hd B roadWebA s ia Inc . L ookS mart, Ltd. S pec trumDNA , Inc . J umbuc k Entertainment Pty Ltd. UOMO Media, Inc Ex tens ions , Inc . IA S Energy , Inc . L ingo Media Corporation A cc eleriz e New Media, Inc . Wynds torm Corporation Quepas a Corp. S NA P Interactiv e, Inc . L iv eW orld Inc . CornerWorld Corporation Worlds .c om Inc . Magnitude Information S y s tems Inc . MOK O.mobi Limited B right Things plc is eemedia Inc . B etaw ave Corporation V OIS , Inc . B igs tring Corp. DigitalPos t Interactiv e, Inc . Unis erve Communications Corp. A s s ociated Media Holdings Inc . The Parent Company ZipLoc al Inc . Financ ial Media G roup, Inc . Total S port Online A S China G atew ay Corporation S NM G lobal Holdings Dibz International, Inc . S oc ial Media V enures , Inc . 0 2559. 9 2446.3
368. 1 362. 1 338. 6 332. 8 298. 2 290.2 258. 1 228. 3 221.6 187.3 158. 1 157. 4 128. 4 128. 2 121.2 114. 5 101. 4 84. 1 83. 8 83. 5 76.0 74.9 67. 7 62. 3 59. 4 48. 8 47. 6 47. 5 42.2 41.4 40.6 40.1 39.8 39.0 32. 7 32. 0 32. 0 31. 0 30. 8 29. 9 28. 2 25. 6 25. 6 25. 3 22. 7 18. 0 16. 3 15. 4 14. 2 14. 0 11. 5 9. 7 9. 2 8. 9 8. 1 7. 7 5. 8 5. 2 4. 6 4. 5 4. 1 3. 2 2. 9 2. 9 1. 4 1. 2 1. 1 0. 9 0. 5 0. 4 0. 2 0. 1 0. 0 0. 0 0. 0 0. 0 500
1157. 2 1010.6 937. 2 768. 709. 8 4 579. 2 549. 5
1457. 2
1808.1 1785. 0
2128.5 2037.2
1, 000
1,500
2, 000
2, 500
3,000
3, 500
4,000
Figure 8. Market Cap Ranking Source. Capital IQ
TEV/Revenue (LTM) averages 5.4x: The overall average TEV/Revenue (LTM) multiple for our group is 5.4x (up from 4.9x last week) (Figure 9). Two companies trade at more than 40x revenue – Dolphin Digital (OTCBB:DPDM) at 46.2x and Gree, Inc. (TSE:3632) at 41.4x. The median is only 2.0x. Note that we exclude multiples greater than 50x. Twenty-nine companies have multiples under 1.5x.
15. 0
20. 0
25. 0
30. 0
35. 0
40. 0
45. 0
50. 0
10. 0 A verage, 5. 4
Figure 9. TEV/Revenue Ranking Source. Capital IQ
# Companies (x) OTCBB AIM TSE HLSE SEHK GTSM OTCNO XTRA OTCPK AMEX TSXV SWX TSX OSE KOSE ASX OM CM KLSE BSE RTS
Figures 10 & 11. TEV/Revenue Ranking (Exchange, Country) Source. Capital IQ
Average TEV/LTM Revenue - By Exchange
NasdaqGS
18.0 15.6 16.0 15.3 14.0 13.0 12.0 10.0 9.9 9.0 8.7 8.0 6.0 4.6 3.9 3.53.4 3.1 2.8 2.8 2.5 2.3 4.0 1.9 1.4 1.9 0.8 0.6 2.0 0.5 0.3 0.0 0.0
11. 3 9. 9 8. 7 6.06. 6 4. 64. 84.95. 55. 5 3.53. 94. 24.54. 6 42. 42. 52. 52. 62. 62. 72. 82. 93. 03. 4 5. 0 1. 11. 11. 11. 21. 31. 41. 41. 51. 92. 02. 02. 12. 0. 00.00. 10. 20. 20. 20. 20. 30. 30. 40. 40. 50. 60. 60. 60. 70. 80. 80. 91. 11. 1 0. 0
20 1 5 1 3 2 1 2 10 2 5 1 4 1 7 2 14 1 1 5 1 1 1
T E V/LT M R evenue (x)
NasdaqGM
# Companies (x) United Japan Finland United Taiwan China Canada Norway Germany Switzerland South Australia Sweden Italy Malaysia Hong Kong India Russia
18.0 15.3 16.0 14.0 12.0 10.9 10.0 9.9 8.0 6.3 6.2 5.8 4.9 6.0 4.6 3.9 4.0 2.8 2.3 1.9 1.4 2.0 0.8 0.5 0.4 0.3 0.0 0.0
1
Average TEV/LTM Revenue - By Country
6
1
40
3
10 11
1
15. 15.3 5
2
1
18.19.2 9
9
24. 8
37. 4
2
41. 4
1
C hina G ateway C orporation O AO R B C Information S y s tems P erfect World C o. , Ltd. U nis erve C ommunic ations C orp. AQ Interac tive, Inc . T he P arent C ompany S handa Interac tive E ntertainment L td. O penwave S y s tems Inc . Northgate T echnologies L imited IAC /InterAc tiveC orp. C DC C orp. DXN Holdings B hd T ree.C om, Inc . L iveW orld Inc . Z ipLoc al Inc . G ameO n C o Ltd. DADA S pA J umbuc k E ntertainment P ty L td. S park Network s , Inc . S NM G lobal Holdings U nited O nline Inc. is eemedia Inc . C y berplex Inc . K aboos e Inc . HanbitS oft, Inc . S hutterfly, Inc. G igaMedia L td. Modern T imes G roup Mtg AB V alueC lic k Inc . G amania Digital E ntertainment C o. , S K C ommunic ations C o. , Ltd. S NAP Interac tive, Inc. Ac toz S oft C o. , L td. O pen T ex t C orp. Y edangO nline C orp. P hotoC hannel Network s Inc. G ungHo O nline E ntertainment, Inc . Y nk K orea Inc . NetDragon WebS oft, Inc . NE O W IZ G ames C orporation My riad G roup AG E olith C o. L td. MO K O . mobi L imited X ING AG Ac c eleriz e New Media, Inc. DigitalP os t Interac tive, Inc . J umpT V Inc. F rogs ter Interac tive P ic tures AG T otal S port O nline AS F luid Mus ic C anada, Inc . S ohu. c om Inc . Mix i, Inc . C ornerWorld C orporation K ings oft C o. L td. Wiz z ard S oftware C orporation B ey ond C ommerc e, Inc . C hangy ou. c om L imited G eoS entric O yj L ingo Media C orporation B right T hings plc C hines e G amer International T enc ent Holdings L td. As s oc iated Media Holdings Inc . U O MO Media, Inc B igs tring C orp. Dolphin Digital Media, Inc . G ree, Inc . 46.2
1
1
Page 11
1
1
1
TEV/EBITDA (LTM) averages 10.3x: The average multiple for the 35 companies with positive EBITDA (and multiples under 100x) is 10.3x LTM EBITDA (vs. 9.3 last week), led by Tencent Holding’s (700-SEHK) 39.3x multiple (Figure 12). Thirteen of the companies have EBITDA multiples under 7x. The median multiple is 9.4x (vs. 8.3x last week). 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 (20), trading at an average multiple of 15.6x (up from 13.9x last week). On a geographic basis, the United States has the most companies (40), trading at an average of 6.3x revenue (up from 5.2x last week) (Figure 11). Eleven of the companies are Canadian (average 4.9x revenue).
Page 12
T E V/L T M E B IT DA (x)
45. 0 40. 0 35. 0 30. 8 30. 0 25. 0 20. 0 15. 0 A verage, 10. 3 10. 0 5. 0 0. 3 O AO R B C Information S y s tems 0. 0 0. 5 S handa Interactive E ntertainment L td. 2. 2 J umbuck E ntertainment P ty Ltd. 2. 5 3. 1 3. 8 4. 1 4. 7 4. 9 5. 6 5.6 6.5 7.2 8.6 8.9 9.3 9.4 9. 6 14. 4 13. 2 13. 7 13. 7 14. 0 10. 7 10. 7 10. 8 10. 9 11. 2 9. 6 10. 2 24. 3 27. 7 39. 3
NE O WIZ G ames C orporation
G amania Digital E ntertainment C o. , Ltd.
G ungH o O nline E ntertainment, Inc .
C hines e G amer International
C hangy ou. c om L imited
DXN Holdings B hd
G ameO n C o L td.
C DC C orp.
S K C ommunic ations C o. , L td.
2.2
Modern T imes G roup Mtg AB
U nited O nline Inc .
S NAP Interac tive, Inc .
O pen T ex t C orp.
G igaMedia L td.
V alueC lic k Inc .
C yberplex Inc.
S ohu. c om Inc .
Mix i, Inc .
NetDragon WebS oft, Inc.
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 (20), trading at an average multiple of 7.2x (vs. 7.7x last week). On a geographic basis, the United States has the most companies (40), trading at an average of 7.9x EBITDA (Figure 14). Eleven of the companies are Canadian (average 9.8x EBITDA).
Average TEV/LTM EBITDA - By Exchange
25.0 20.0 15.0 (x) 10.0 5.0 OTCBB GTSM 0.0 SEHK NasdaqGS KOSE OSE TSE OM 19.4 17.1 14.0 10.810.0 8.9 7.5 7.2 6.4 4.7 19.9
18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0
Average TEV/LTM EBITDA - By Country
17.1 14.8 12.2 10.8 9.8 8.9
(x)
8.3
7.9
5.6 4.7 3.8 0.3 0.0 Russia 1 Switzerland 1
4.1 3.8 2.2 0.3 AMEX KLSE RTS ASX
0.0 0.0 NasdaqGM SWX
XTRA
TSX
CM
Germany
China
Japan
United States
Hong Kong
Malaysia
Canada
South Korea
Italy
# Companies
3
2
7
1
2
4
1
14
20
5
1
2
1
2
1
1
5
# Companies 9 3 10 2 11 1 6 40 1 1 1 2
Figures 13 & 14. TEV/EBITDA Ranking (Exchange, Country) Source. Capital IQ
P/E (LTM) averages 16.7x: The average multiple for the 30 companies with positive earnings (and multiples under 100x) is 16.7x LTM EPS (vs. 15.3x last week), led Tencent Holding’s (700-SEHK) 50.1x multiple (Figure 15). Ten of the companies have P/E multiples under 10x. The median is just 13.4x.
Australia
Taiwan
Sweden
T encent Holdings L td.
AQ Interac tive, Inc .
S park Network s , Inc.
IAC /InterAc tiveC orp.
Y edangO nline C orp.
K aboos e Inc.
XING AG
Actoz S oft C o. , L td.
K ings oft C o. L td.
Y nk K orea Inc.
S hutterfly , Inc.
DADA S pA
Page 13
P /E L T M (x)
60.0 50.1 50.0
40.0 32.8 33.5 34.1 30.0 20.8 21.8 20.0 A verage, 16.7 8.4 17.3 13.8 14.4 14.6 14.6 12.4 12.9 13.0 10.6 11.8 27.4 28.2
36.2 36.3
10.0 0.9 0.0 T he9 Limited P erfect World C o., Ltd. 1.9 2.2 G iant Interactive G roup, Inc. 2.8 Neteas e.com Inc. 3.3 4.3
5.4
6.7
7.2
G amania Digital E ntertainment C o., Ltd.
J umbuck E ntertainment P ty Ltd.
NE O W IZ G ames C orporation
Modern T imes G roup Mtg AB
S handa Interactive E ntertainment Ltd.
C hines e G amer International
C hangy ou.com Limited
DXN H oldings B hd
G ameO n C o Ltd.
S NAP Interactive, Inc.
O pen T ex t C orp.
Ngi G roup Inc.
Worlds .com Inc.
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 (20), trading at an average multiple of 23.3x. On a geographic basis, the United States has the most companies (40), trading at an average of 20.5x earnings (Figure 17). Eleven of the companies are Canadian (average 18.3x EPS).
Average P/E - By Exchange
35.0 31.8 30.0 25.0 (x) 20.0 15.0 10.0 5.0 OTCBB GTSM 0.0 NasdaqGS SEHK KOSE TSE CM AMEX XTRA TSX ASX 26.8 26.4 23.3
30.0 25.0 20.0 (x) 24.7 26.4
Average P/E - By Country
21.8
21.8 20.6
20.6 14.6 10.8 8.4 7.2 6.7 5.4 4.3 KLSE
20.5
15.0 10.0
18.3 12.0 7.2 6.7 5.4 4.3 0.0 Malaysia 1
2.2 0.0 NYSE SWX
5.0 0.0 Germany Japan Canada United States China South Korea Taiwan Italy Australia
OM
Sweden
T encent H oldings Ltd.
Switzerland 1
C y berplex Inc.
G igaMedia Ltd.
S park Network s , Inc.
IAC /InterActiveC orp.
S ohu.com Inc.
Y edangO nline C orp.
K ings oft C o. Ltd.
DADA S pA
XING AG
# Companies
2
3
7
20
2
5
2
14
4
1
2
1
1
1
1
# Companies
9
3
2
6
40
11
10
Actoz S oft C o., Ltd.
1
2
1
Figures 16 & 17. P/E Ranking (Exchange, Country) Source. Capital IQ
Mix i, Inc.
Page 14
UPCOMING EVENTS
E arnings Calendar
C ompany
G i ga Media L td. (N a sda qG S :G I G M)
Figure 18. Earnings Calendar Source. Company reports
D ate & T ime
T uesda y , J une 09, 2009 8:00 AM (E D T)
Qu arter
Q 1 2009
C onf C a ll D etails
NA
Page 15
C omparable C ompany Analys is > W eb 2 .0
P ric e P erformanc e
C ompa ny Na me Acce le riz e N ew Me dia, Inc. Actoz S of t C o., L td. AQ Inte ractive , Inc. As s ocia ted Media H oldings Inc. B igstring Corp. B e tawave Corpora tion B e yond Commerce, Inc. B right T hings plc B roa dW ebAs ia Inc. C DC C orp. C ha ngyou. com Limite d C hina G ate wa y C orpora tion C hine s e G amer International C ornerW orld C orporation C yberplex Inc. D ADA S pA D XN Holdings B hd D ibz Inte rnational, Inc. D igitalP ost Inte ra ctive , Inc. D igitalT own, Inc. D olphin Digital Me dia, Inc. E olith C o. L td. E xte ns ions , Inc. F inancia l Media G roup, Inc. F luid M us ic Ca nada, Inc. F rogs te r Interactive P icture s AG G a ma nia Digital E ntertainment C o., L td. G a me On C o L td. G e oS e ntric O yj G iant Intera ctive G roup, Inc. G iga Media Ltd. G ravity C o., L td G ree, Inc. G ungH o O nline E ntertainment, Inc. H anbitS oft, Inc. IAC /InterActiveC orp. IAS E nergy, Inc. is ee media Inc. J umbuck E ntertainment P ty Ltd. J umpT V Inc. K a boos e Inc. K ings oft Co. Ltd. Lingo Media Corporation Live World Inc. LookS mart, Ltd. M agnitude Information S ys tems Inc. M ixi, Inc. M ode rn Times G roup Mtg AB M oggle , Inc M OK O.mobi L imited M yriad G roup AG N E OW IZ G ames C orpora tion N etDragon W ebS oft, Inc. N ete as e.com I nc. N eXplore Corpora tion N gi G roup Inc. N orthgate Te chnologies L imited Open T e xt Corp. Openwave S ys tems Inc. P e rfect W orld C o., Ltd. P hotoChannel N etwork s Inc. Quepa s a C orp. OA O R B C Information S ys tems S handa Interactive E ntertainme nt L td. S hutte rf ly, Inc. S K C ommunications Co., Ltd. S N AP Inte ra ctive , Inc. S N M G lobal H oldings S ocia l Media V e nures , Inc. S ocia lwis e, Inc. S ohu. com Inc. S ite s earch C orporation S park N etworks , Inc. S pectrumDN A, Inc. T encent Holdings L td. T he P arent C ompany T he 9 L imited T he S treet.com, Inc. T otal S port Online A S T ree.C om, Inc. U nis erve C ommunications Corp. U nited Online Inc. U OMO Media , Inc V a lueC lick Inc. V O IS , Inc. W ebze n Inc. W iz za rd S of twa re Corpora tion W orlds .com Inc. W ynds torm C orporation XIN G AG Y e dangOnline Corp. Y nk K orea Inc. ZipLocal Inc. H igh Low A vera ge M edian C ur rency US D KR W JPY US D US D US D US D GBP US D US D US D US D TWD US D C AD E UR MY R US D US D US D US D KR W US D US D C AD E UR TWD JPY E UR US D US D US D JPY JPY KR W US D US D C AD AU D C AD C AD HKD C AD US D US D US D JPY SE K US D AU D C HF KR W HKD US D US D JPY IN R US D US D US D C AD US D US D US D US D KR W US D US D US D US D US D US D US D US D HKD US D US D US D N OK US D C AD US D US D US D US D US D US D US D US D E UR KR W KR W C AD T ic ker A CL Z A 052 790 3 838 A S MH B S GC B W AV B Y OC A IM:B G T B W BA C H IN .A C Y OU CGWY G TS M:3 083 CWR L T S X:CX C M :DA DXN DIB Z DG L P DG T W DP DM A 041 060 E XT I F NGP T S X:F MN FR G 6 180 3 812 G E O1V GA G IG M G RV Y T S E :36 32 3 765 A 047 080 I ACI I AS C .A IEE A S X:J M B T S X:J T V T S X:K AB 3 888 T S XV :LM L VW D L OOK M AG Y 2 121 MT G B M MOG MKB MYR N A 095 660 7 77 NT E S N XP C 2 497 5 900 57 O TE X O PW V P W RD T S XV :P N Q PSA R BC I S NDA S F LY A 066 270 S T VI S NM N S MVI S CL W S OH U S TPC L OV S P XA 7 00 K IDS .Q NC TY T S CM T OS O TR EE T S XV :U S S UNTD U OMO V CL K V OIS W ZE N W ZE W DDD W YND O 1B C A 052 770 A 023 770 T S XV :ZIP E x change OT C B B KO SE TSE OT C P K OT C B B OT C B B OT C B B AI M OT C P K N as da qG S N as da qG S OT C P K GT S M OT C B B TSX CM KL SE OT C P K OT C B B OT C B B OT C B B KO SE OT C P K OT C B B TSX XT R A GT S M TSE H LS E NYS E N as da qG S N as da qG M TSE OS E KO SE N as da qG S OT C B B T S XV AS X TSX TSX S E HK T S XV OT C P K N as da qG M OT C B B TSE OM OT C B B AS X SWX KO SE S E HK N as da qG S OT C P K TSE BS E N as da qG S N as da qG S N as da qG S T S XV N as da qC M R TS N as da qG S N as da qG S KO SE OT C B B OT C P K OT C P K OT C B B N as da qG S OT C B B AM E X OT C B B S E HK OT C P K N as da qG S N as da qG M OT C N O N as da qG M T S XV N as da qG S OT C B B N as da qG S OT C B B N as da qG M AM E X OT C B B OT C B B XT R A KO SE KO SE T S XV U S D Ma rket C ap ($m) 9 .7 22 1.6 4 1.4 0 .9 1 .4 2 .9 4 2.2 4 .1 2 5.3 15 8.1 2,1 28. 5 0 .0 93 7.2 5 .8 8 4.1 12 8.2 2 5.6 0 .0 1 .2 6 7.7 3 1.0 4 0.6 1 4.2 0 .2 3 2.7 2 5.6 25 8.1 11 4.5 6 2.3 2,0 37. 2 33 2.8 3 2.0 1,4 57. 2 29 0.2 8 3.8 2,4 46. 3 1 4.0 3 .2 1 6.3 7 4.9 7 6.0 76 8.4 1 1.5 7 .7 2 2.7 4 .6 70 9.8 1,7 85. 0 8 3.5 4 .5 10 1.4 54 9.5 36 2.1 4,6 13. 2 3 9.0 4 0.1 3 9.8 1,8 08. 1 15 7.4 1,1 57. 2 4 8.8 8 .9 18 7.3 4,2 76. 8 33 8.6 36 8.1 8 .1 0 .0 0 .0 3 0.8 2,5 59. 9 2 8.2 4 7.5 1 8.0 20, 843 .8 0 .5 29 8.2 5 9.4 0 .1 12 8.4 1 .1 57 9.2 1 5.4 1,0 10. 6 2 .9 4 7.6 3 2.0 5 .2 9 .2 22 8.3 12 1.2 2 9.9 0 .4 C urrent Pric e 0.3 5 3 2,50 0.0 0 7 5,00 0.0 0 0.0 2 0.0 3 0.1 0 0.9 5 0.0 1 0.3 0 1.4 9 3 8.7 0 0.0 0 36 6.0 0 0.0 9 1.5 0 5.7 0 0.3 9 0.0 0 0.0 2 2.5 0 0.6 0 70 0.0 0 0.1 5 0.0 0 0.7 0 7.8 5 5 5.8 0 11 6,70 0.0 0 0.0 5 9.0 3 6.1 6 1.1 5 6,43 0.0 0 24 9,70 0.0 0 4,79 0.0 0 1 6.2 1 0.2 0 0.0 7 0.4 2 0.7 4 0.6 1 5.4 9 1.0 0 0.2 5 1.3 3 0.0 1 45 5,00 0.0 0 21 2.5 0 2.3 0 0.0 7 5.2 0 7 1,50 0.0 0 5.3 1 3 7.4 9 0.7 0 3 2,00 0.0 0 5 4.2 0 3 4.3 6 1.8 9 2 2.6 3 1.6 0 0.7 0 1.3 5 6 1.6 4 1 3.4 5 1 1,00 0.0 0 0.7 5 0.0 0 0.0 1 0.7 1 6 6.9 0 3.5 0 2.3 1 0.3 7 8 9.6 0 0.0 2 1 1.1 2 1.9 4 0.0 3 1 1.8 9 0.0 5 6.9 3 0.1 8 1 1.6 2 0.3 5 4.0 2 0.6 7 0.1 0 0.5 1 3 1.2 1 9,67 0.0 0 7,00 0.0 0 0.0 1 1 Wk 0.0 % 23.6 % -6.3 % 1 233 .3% 42.1 % 25.0 % -5.9 % -20. 6% -33. 8% -12. 4% 8.2 % 1 00. 0% -2.8 % 0.0 % -4.5 % -4.1 % -1.3 % -90. 0% 6.7 % 25.0 % 13.2 % -3.4 % -25. 0% 0.0 % -6.7 % 5.4 % -4.8 % -5.9 % 0.0 % 14.0 % -0.5 % 4.5 % 14.2 % 0.7 % -9.5 % -2.2 % -23. 1% -22. 2% -6.7 % -7.5 % 0.0 % 4.6 % -4.8 % 1 94. 1% 2.3 % -33. 3% -0.7 % -8.6 % 15.0 % 0.0 % -9.6 % -7.3 % -2.0 % 4.7 % 0.0 % -7.8 % 15.2 % -3.7 % 1.9 % 0.4 % 3.9 % -31. 4% 8.0 % 2.3 % -11. 1% -8.3 % -5.1 % -20. 0% -93. 3% 1.4 % 1.0 % -30. 0% 0.9 % 0.0 % 4.7 % 26.7 % 20.0 % -1.0 % 0.0 % 10.8 % 0.0 % -0.4 % 12.5 % 3.1 % -61. 1% -10. 8% 21.8 % 0.0 % 1 600 .0% -7.3 % -5.2 % -9.1 % 0.0 % 1 600 .0% -93. 3% 30.1% 0.0 % 1 Mth -30. 0% 1 18.9 % 6 2.7 % 12 33. 3% 8.0% -16. 7% -21. 5% -34. 5% -33. 8% 0.0% 2 8.9 % 1 00.0 % 7 3.9 % -10. 0% -20. 6% -14. 9% -12. 4% -90. 0% -5.3 % 0.0% -6.3 % -20. 9% -25. 0% -38. 8% 2 7.3 % -11. 1% 4 4.6 % 2 4.4 % 0.0% 1 0.8 % -4.2 % 1 7.3 % 2 1.8 % 8 1.3 % -2.2 % 2.7% -24. 5% -41. 7% 5.0% 1.4% 1.7% 2 1.5 % -5.7 % 2 33.3 % -12. 5% 0.0% -2.8 % -10. 1% 1 5.0 % -10. 8% 1.0% 1 1.0 % -1.8 % 2 1.2 % 0.0% -3.9 % 2 9.7 % 9.9% 5 2.4 % 1 5.3 % 3.2% -22. 2% 3 7.1 % 3 0.5 % 8.2% 1 7.3 % 0.0% -33. 3% -99. 2% 5 1.1 % 2 1.2 % NM -21. 2% -5.1 % 2 1.9 % 5 2.0 % 2 0.3 % -4.0 % 0.0% 4.9% 2 5.0 % -7.2 % -28. 0% 1 3.0 % 1 6.7 % 2 4.7 % 1 1.7 % -50. 0% 2 00.0 % 7.6% 7.1% 1 7.4 % 0.0% 12 33. 3% -99. 2% 22.6% 1.5% 3 Mth 59 .1% 21 2.5% 14 1.2% 132 8.6 % 13 6.8% -1 6.7% 66 .7% -1 4.4% -7 0.5% 79 .5% NM 0 .0% 15 4.2% -4 0.0% 28 4.6% 15 .5% 39 .3% -9 0.0% 30 0.0% -0 .8% 50 .0% 28 .4% 18 5.7% -8 5.0% 11 2.1% 11 2.2% 10 6.7% 49 .8% 66 .7% 27 .4% 29 .1% 79 .7% 41 .9% 11 3.8% 50 .9% 15 .2% 18 5.7% -1 2.5% -6 .7% 85 .0% 52 .5% 10 4.9% 14 .9% 21 2.5% 40 .0% -4 7.4% 51 .7% 69 .3% 53 .3% 32 .0% 36 .8% 92 .7% 59 .0% 72 .5% -2 2.2% 91 .0% 76 .8% 16 .0% 14 6.1% 10 8.4% -3 .0% -2 0.5% 35 0.0% 81 .5% 70 .5% 69 .2% -2 1.1% 10 0.0% -9 9.2% 77 .5% 42 .1% NM 0 .4% 85 .0% 90 .6% 90 .0% 9 .1% 4 .9% -2 5.0% 18 3.8% 0 .0% 78 .6% 20 0.0% 89 .6% -5 3.3% 20 4.2% 55 .8% -2 8.6% 32 5.0% 24 .8% 52 .8% 10 2.6% 0 .0% 132 8.6 % -9 9.2% 79.3% 55 .8% 6 Mth -1 2.5 % 23 3.3% 12 9.4% 56 6.7% 42 .1% -4 7.4 % 18 .8% 52 .3% -7 7.9 % 53 .6% NM -8 6.7 % 31 0.3% -8 0.0 % 43 5.7% -1 6.7 % 20 .0% -9 8.0 % -4 0.7 % 25 .0% -1 4.3 % 27 .3% 50 .0% -9 5.7 % 16 9.2% 83 .0% 28 2.2% -1 2.3 % 25 .0% 51 .3% 28 .3% 94 .9% NM 17 7.1% 52 .8% -2.9% 56 6.7% 40 .0% -4.5% 13 8.7% 14 4.0% 10 4.9% 0 .0% 40 0.0% -1 6.4 % -5 8.3 % -2 8.3 % 40 .3% NM 65 .0% -1 4.3 % 29 8.3% 54 .4% 85 .6% -4 4.0 % -3 9.0 % 9 .5% 25 .6% 25 0.0% 30 .7% 0 .6% -6 4.6 % 62 .7% 10 8.7% 72 .4% 10 3.7% 0 .1% -9 4.3 % -9 9.7 % -4 9.6 % 50 .6% NM -1 6.0 % 76 .2% 79 .2% -9 7.0 % -3.6% -4 6.1 % -4 0.0 % 52 9.1% 25 .0% 8 .1% 10 0.0% 52 .9% -5 3.3 % 43 5.3% -3 2.3 % -5 4.5 % 32 5.0% 12 .8% 49 .2% 52 .5% -5 0.0 % 56 6.7% -9 9.7 % 65.6% 27 .3% 1 Yr -53 .3% 3 06. 3% -48 .6% NM -77 .3% -74 .4% -65 .5% -45 .4% -86 .8% -50 .8% NM -96 .7% 2 83. 2% -83 .3% 87.5 % -55 .3% -11 .4% -98 .0% -89 .3% -28 .6% NM -19 .5% 0.0 % -99 .6% NM 65.3 % 80.0 % -8. 1% -16 .7% -32 .3% -59 .2% -14 .2% NM 0.7 % 34.2 % -62 .0% 0.0 % -65 .0% -28 .8% 13.8 % -35 .8% 50.4 % -44 .4% 25.0 % -68 .3% -41 .2% -39 .9% -45 .5% NM 32.0 % -48 .0% 1 32. 9% -44 .2% 63.1 % NM -74 .8% -85 .3% 3.7 % 12.5 % -10 .0% -58 .4% -72 .9% -85 .0% 1 05. 1% -5. 7% -38 .7% 8.7 % -99 .9% NM -47 .0% -15 .8% NM -44 .1% NM 44.3 % -99 .2% -57 .2% -72 .4% -70 .0% NM -84 .8% -39 .8% -57 .1% -35 .2% NM 12.2 % -66 .0% -66 .7% -15 .0% -13 .7% -17 .0% -49 .6% -96 .4% 3 06. 3% -99 .9% -22.9% -41 .2% 52 We ek -53. 3% -9.7 % -59. 0% -60. 0% -86. 5% -76. 2% -71. 2% -47. 6% -89. 7% -55. 7% -5.0 % -95. 6% -6.9 % -88. 6% -24. 6% -59. 2% -17. 0% -98. 0% -91. 6% -59. 0% -46. 9% -39. 7% -85. 1% -99. 7% -65. 7% -20. 7% -11. 0% -28. 6% -28. 6% -36. 2% -64. 2% -42. 2% -0.8 % -13. 3% -27. 9% -67. 9% -42. 9% -80. 0% -34. 4% -42. 2% -39. 0% -8.0 % -49. 2% -26. 5% -69. 4% -66. 7% -50. 6% -48. 0% 0.0 % -34. 0% -49. 3% -14. 8% -49. 9% -2.2 % -51. 7% -76. 5% -85. 9% -12. 1% -8.3 % -19. 4% -61. 3% -79. 8% -85. 2% -5.2 % -11. 9% -44. 2% -30. 6% -99. 9% -99. 8% -74. 9% -24. 0% -30. 0% -48. 2% -38. 3% -3.1 % -99. 4% -61. 0% -75. 1% -70. 0% -9.0 % -85. 7% -43. 7% -83. 0% -38. 2% -93. 8% -14. 2% -67. 3% -75. 0% -40. 0% -18. 7% -22. 0% -51. 9% -96. 9% 0.0 % -99. 9% -49.2% -48. 2%
590.6
Figure 19. Price Performance Source. Capital IQ
Page 16
C omparable C ompany A nalys is > W eb 2.0
V aluatio n Multiples C om pany Nam e
Acce le rize N ew Me dia, Inc. Actoz S of t C o., L td. AQ Inte ractive , Inc. As s ocia ted Media Holdings Inc. B igstring Corp. B e tawave Corpora tion B e yond Commerce, Inc. B right T hings plc B roa dW ebAs ia Inc. C D C C orp. C ha ngyou. com Limite d C hina G ate wa y C orpora tion C hine s e G amer International C ornerW orld C orporation C yberplex Inc. D AD A S pA D XN Holdings B hd D ibz Inte rnational, Inc. D igitalP ost Inte ra ctive , Inc. D igitalT own, Inc. D olphin D igital Me dia, Inc. E olith C o. L td. E xte ns ions , Inc. F inancia l Media G roup, Inc. F luid Mus ic Ca nada, Inc. F rogs te r Interactive P icture s AG G a ma nia D igital E ntertainment C o., L td. G a me On C o L td. G e oS e ntric O yj G iant Intera ctive G roup, Inc. G iga Media Ltd. G ravity C o., L td G ree, Inc. G ungH o O nline E ntertainment, Inc. H anbitS of t, Inc. IAC /InterActiveC orp. IAS E nergy, Inc. is ee media Inc. J umbuck E ntertainment P ty Ltd. J umpT V Inc. K a boos e Inc. K ings oft Co. Ltd. Lingo Media Corporation Live World Inc. LookS mart, Ltd. Magnitude Information S ys tems Inc. Mixi, Inc. Mode rn Times G roup Mtg AB Moggle , Inc MOK O.mobi L imited Myriad G roup AG N E OW IZ G ames C orpora tion N etD ragon W ebS oft, Inc. N ete as e.com I nc. N eXplore Corpora tion N gi G roup Inc. N orthgate Te chnologies L imited Open T e xt Corp. Openwave S ys tems Inc. P e rf ect W orld C o., Ltd. P hotoChannel N etwork s Inc. Quepa s a C orp. OA O R B C Information S ys tems S handa Interactive E ntertainme nt L td. S hutte rf ly, Inc. S K C ommunications Co., Ltd. S N AP Inte ra ctive , Inc. S N M G lobal H oldings S ocia l Media V e nures , Inc. S ocia lwis e, Inc. S ohu. com Inc. S ite s earch C orporation S park N etworks , Inc. S pectrumDN A, Inc. T encent Holdings L td. T he P arent C ompany T he 9 L imited T he S treet.com, Inc. T otal S port Online A S T ree.C om, Inc. U nis erve C ommunications Corp. U nited Online Inc. U OMO Media , Inc V a lueC lick Inc. V O IS , Inc. W ebze n Inc. W iz za rd S of twa re Corpora tion W orlds .com Inc. W ynds torm C orporation XIN G AG Y e dangOnline Corp. Y nk K orea Inc. ZipLocal Inc. H igh Low A vera ge Median
S ec to r
D irect Marketing G aming G aming Mobile Ins ta nt Mes s aging Me dia S ocia l Ne tworking S ocia l Ne tworking S ocia l Ne tworking G aming G aming Mobile G aming C ontent Advertis ing S ocia l Ne tworking S ocia l Ne tworking S NS A pps C ontent S ocia l Ne tworking S ocia l Ne tworking G aming C ontent D irect Marketing Me dia G aming G aming G aming Mobile G aming G aming G aming S ocia l Ne tworking Me dia G aming Me dia V ide o C ontent S ocia l Ne tworking V ide o C ontent G aming Le arning S ocia l Ne tworking D irect Marketing S ocia l Ne tworking S ocia l Ne tworking Me dia G aming S ocia l Ne tworking Mobile G aming G aming G aming C ontent Me dia D irect Marketing C ollaboration Mobile G aming D igital Imaging S ocia l Ne tworking Me dia G aming D igital Imaging S e arch D ating Me dia S ocia l Ne tworking S ocia l Ne tworking G aming S ocia l Ne tworking S ocia l Ne tworking Me dia P orta l Me dia G aming Me dia Me dia P orta l S ocia l Ne tworking Me dia Me dia Me dia S ocia l Ne tworking G aming P odcas ting C ontent C ontent S ocia l Ne tworking G aming G aming D irectory
Co untry
U nite d S tates S outh K ore a J a pan U nite d S tates U nite d S tates U nite d S tates U nite d S tates U nite d K ingdom U nite d S tates H ong K ong C hina U nite d S tates T a iwan U nite d S tates C anada Italy Malays ia U nite d S tates U nite d S tates U nite d S tates U nite d S tates S outh K ore a U nite d S tates U nite d S tates U nite d S tates G ermany T a iwan J a pan F inland C hina T a iwan S outh K ore a J a pan J a pan S outh K ore a U nite d S tates C anada C anada A us tralia C anada C anada C hina C anada U nite d S tates U nite d S tates U nite d S tates J a pan S we den U nite d S tates A us tralia S witz erland S outh K ore a C hina C hina U nite d S tates J a pan India C anada U nite d S tates C hina C anada U nite d S tates R us s ia C hina U nite d S tates S outh K ore a U nite d S tates U nite d S tates U nite d S tates U nite d S tates C hina U nite d S tates U nite d S tates U nite d S tates C hina U nite d S tates C hina U nite d S tates N orway U nite d S tates C anada U nite d S tates C anada U nite d S tates U nite d S tates S outh K ore a U nite d S tates U nite d S tates U nite d S tates G ermany S outh K ore a S outh K ore a C anada
P rimary E xc hange
OT C B B K OS E TSE OT C P K OT C B B OT C B B OT C B B AIM OT C P K N as da qG S N as da qG S OT C P K GTS M OT C B B TSX CM KL SE OT C P K OT C B B OT C B B OT C B B K OS E OT C P K OT C B B TSX XT R A GTS M TSE H LS E NYS E N as da qG S N as da qG M TSE OS E K OS E N as da qG S OT C B B T S XV AS X TSX TSX S E HK T S XV OT C P K N as da qG M OT C B B TSE OM OT C B B AS X SWX K OS E S E HK N as da qG S OT C P K TSE BS E N as da qG S N as da qG S N as da qG S T S XV N as da qC M R TS N as da qG S N as da qG S K OS E OT C B B OT C P K OT C P K OT C B B N as da qG S OT C B B AME X OT C B B S E HK OT C P K N as da qG S N as da qG M OT C NO N as da qG M T S XV N as da qG S OT C B B N as da qG S OT C B B N as da qG M AME X OT C B B OT C B B XT R A K OS E K OS E T S XV
Tic ker
AC LZ A 052 790 3 838 AS MH BS G C B WA V BYO C AIM:B G T B WB A C HIN .A CY OU CG W Y G T S M:308 3 CWR L T S X:C X CM:DA D XN D IB Z DGL P D G TW DP DM A 041 060 E XT I F NGP T S X:F MN F RG 6 180 3 812 G E O1V GA G IG M GR VY T S E :3 632 3 765 A 047 080 IAC I IA S C .A IE E AS X:J MB T S X:J T V TS X:K AB 3 888 TS XV :LM LV W D L OOK MAG Y 2 121 MT G B MMO G MK B MY R N A 095 660 777 NT E S N XP C 2 497 59 005 7 O TE X OP W V PW R D T S XV :P N QP S A R B CI S NDA S FL Y A 066 270 S TVI S N MN S MV I S CL W S OH U STPC L OV S P XA 700 K ID S .Q NC T Y TSCM T OS O TR E E T S XV :U S S U N TD U OMO VC LK VOIS W ZE N W ZE W DD D W YND O 1B C A 052 770 A 023 770 T S XV :ZIP
US D Market Cap ($m)
9. 7 2 21. 6 41. 4 0. 9 1. 4 2. 9 42. 2 4. 1 25. 3 1 58. 1 2,1 28. 5 0. 0 9 37. 2 5. 8 84. 1 1 28. 2 25. 6 0. 0 1. 2 67. 7 31. 0 40. 6 14. 2 0. 2 32. 7 25. 6 2 58. 1 1 14. 5 62. 3 2,0 37. 2 3 32. 8 32. 0 1,4 57. 2 2 90. 2 83. 8 2,4 46. 3 14. 0 3. 2 16. 3 74. 9 76. 0 7 68. 4 11. 5 7. 7 22. 7 4. 6 7 09. 8 1,7 85. 0 83. 5 4. 5 1 01. 4 5 49. 5 3 62. 1 4,6 13. 2 39. 0 40. 1 39. 8 1,8 08. 1 1 57. 4 1,1 57. 2 48. 8 8. 9 1 87. 3 4,2 76. 8 3 38. 6 3 68. 1 8. 1 0. 0 0. 0 30. 8 2,5 59. 9 28. 2 47. 5 18. 0 20,8 43. 8 0. 5 2 98. 2 59. 4 0. 1 1 28. 4 1. 1 5 79. 2 15. 4 1,0 10. 6 2. 9 47. 6 32. 0 5. 2 9. 2 2 28. 3 1 21. 2 29. 9 0. 4 20,8 43. 8 0. 0 590. 6 41. 4
TE V/LT M R evenue
3.5 x 2.1 x 0.2 x 19.2 x 37.4 x 6.6 x 15.3 x 0.4 x 8.7 x 0.0 x 15.5 x 5.5 x 1.1 x 0.8 x 0.5 x 3.9 x 41.4 x 2.9 x 4.6 x 4.5 x 1.9 x 0.7 x 9.9 x 1.4 x 46.2 x 2.5 x 1.2 x 0.4 x 1.1 x 0.8 x 4.2 x 1.1 x 5.5 x 11.3 x 0.6 x 4.9 x 1.4 x 3.0 x 2.8 x 2.7 x 2.6 x 0.3 x 2.4 x 0.3 x 0.1 x 2.5 x 0.0 x 0.2 x 1.3 x 2.0 x 2.0 x 1.1 x 0.0 x 4.8 x 0.9 x 18.9 x 0.2 x 4.6 x 0.6 x 0.2 x 1.1 x 24.8 x 1.5 x 6.0 x 3.4 x 2.4 x 2.6 x 0.6 x 46.2 x 0.0 x 5.4x 2.2 x
TE V/ N TM R evenue
0.5x 6.6x 0.8x 3.9x 1.4x 0.4x 1.1x 1.3x 2.2x 0.3x 0.3x 1.7x 1.2x 4.2x 0.5x 0.9x 1.7x 6.6x 0.3x 1.7x 1.2x
TE V/LT M E BITDA
9.6 x 2.5 x 5.6 x 14.4 x 27.7 x 10.7 x 4.7 x 3.8 x 11.2 x 3.1 x 5.6 x 14.0 x 13.2 x 2.2 x 9.3 x 13.7 x 13.7 x 8.9 x 10.2 x 6.5 x 9.4 x 0.1 x 0.3 x 0.5 x 9.6 x 30.8 x 7.2 x 10.9 x 4.1 x 39.3 x 4.9 x 8.6 x 10.8 x 10.7 x 24.3 x 39.3 x 0.1 x 10.3x 9.4 x
TE V/NTM E BITDA
6.0x 7.1x 6.2x 3.6x 5.7x 1 0.8 x 8.2x 3.1x 0.6x 5.0x 2.8x 7.4x 9.5x 6.3x 3.6x 6.6x 1 0.8 x 0.6x 5.8x 6.1x
P /LT M E P S
33 .5x 14 .6x 36 .2x 8. 4x 7. 2x 4. 3x 27 .4x 13 .8x 2. 2x 10 .6x 20 .8x 6. 7x 17 .3x 36 .3x 5. 4x 32 .8x 13 .0x 2. 8x 11 .8x 28 .2x 1. 9x 3. 3x 12 .4x 14 .4x 14 .6x 50 .1x 0. 9x 34 .1x 21 .8x 12 .9x 50 .1x 0. 9x 16.7x 13 .4x
P /NT M E P S
1 0.8 x 9.0x 1 5.0 x 1 2.8 x 3 1.8 x 1 2.3 x 1 7.0 x 1 3.1 x 3 0.5 x 1 0.1 x 9.7x 1 7.2 x 1 8.4 x 1 2.1 x 8.6x 1 8.4 x 3 1.8 x 8.6x 15.4x 1 2.9 x
P /TangBV
3 .8x 0 .7x 0 .4x 1 3.2x 1 3.6x 8 .3x 0 .5x 3 .9x 3 .2x 2 .3x 3 .3x 1 .6x 1 0.7x 0 .4x 3 .0x 1 8.7x 4 2.4x 2 .5x 1 .1x 1 .7x 1 .7x 3 .8x 4 .2x 1 1.7x 3 .2x 0 .9x 5 .4x 3 .4x 4 .6x 1 6.6x 2 .0x 0 .8x 0 .6x 2 .3x 0 .7x 2 0.1x 1 .3x 2 .0x 4 .8x 4 0.0x 6 .9x 4 0.1x 4 7.1x 2 0.9x 0 .1x 0 .8x 1 .7x 8 .2x 1 0.1x 0 .0x 7 .3x 4 .5x 1 .5x 4 7.1x 0 .0x 7.8x 3 .3x
Figure 20. Valuation Comparison Source. Capital IQ
Page 17
C omparable C ompany A nalys is > W eb 2.0
Su mmary b y C ountry
C om pany Nam e U nited S tates C anada C hina S outh K orea J a pa n T a iwa n A ustra lia G ermany S witz erla nd H ong K ong F inla nd I ta ly U nited K ingdom I ndia S weden R us sia M a la ys ia N orway G rand To tal 40 11 10 9 6 3 2 2 1 1 1 1 1 1 1 1 1 1 93 U S D Market Cap ($m) C hina U nited S tates J a pan C anada S weden T a iwa n S outh K orea G erma ny R uss ia H ong K ong I ta ly S witz erla nd F inland I ndia M alays ia Aus tra lia U nited K ingdom N orway G rand T otal 39, 045.2 5, 304.0 2, 653.1 2, 137.5 1, 785.0 1, 528.0 1, 494.4 253.9 187.3 158.1 128.2 101.4 62.3 39.8 25.6 20.8 4.1 0.1 54,928.8 Avg US D Mar ket C ap ($m) China S weden Ta iwa n Japan Ca na da R us sia S outh K orea Hong K ong United S tates Ita ly G erma ny S witzerland Finland India Malay sia Australia United K ingdom Norway G rand Total 3,904. 5 1,785. 0 509. 3 442. 2 194. 3 187. 3 166. 0 158. 1 132. 6 128. 2 127. 0 101. 4 62. 3 39. 8 25. 6 10. 4 4. 1 0. 1 590.6 U S D LT M T otal R ev ($m) C hina U nited S ta tes S weden C a na da S outh K orea J a pa n H ong K ong T aiwan I ta ly R uss ia I ndia M a la ys ia G ermany S witz erla nd Aus tra l ia F inla nd N orwa y U nited K ingdom G rand T otal 3, 838. 0 3, 795. 5 1, 716. 0 990. 0 671. 7 492. 3 389. 9 372. 8 235. 2 150. 8 117. 9 78. 6 58. 1 40. 0 15. 2 5. 9 2. 1 0. 3 12,970.4 U S D LT M Total E B IT DA ($m) C hina S weden U nited S ta tes C a na da J apan T a iwan S outh K orea I taly H ong K ong R uss ia G erma ny M alays ia Aus tralia S witz erland N orway U nited K ingdom F inland I ndia G r and T otal 1,773. 4 262. 9 244. 8 197. 2 126. 1 98. 5 87. 3 37. 6 30. 8 19. 7 13. 0 10. 8 2. 9 0. 8 -1. 0 -1. 8 -15. 2 -27. 7 2,860.1 E B IT DA % C hina Aus tral ia T aiwa n J a pa n I ta ly S weden M a la ys ia R uss ia H ong K ong S outh K orea S witz erla nd U nited S ta tes G ermany C anada I ndia N orway F inla nd U nited K ingdom G rand T otal 47. 9% 37. 2% 32. 3% 25. 3% 16. 0% 15. 3% 13. 7% 13. 1% 7.9% 6.1% 1.9% -9. 9% -14.7% -21.1% -23.5% -50.6% #DI V /0! #DI V /0! 6.3%
Figure 21. Comparison by Country Source. Capital IQ
C omparable C ompany A nalys is > W eb 2.0
Su mmary b y Ex c hange
C om pany Nam e OT C B B N as da qG S OT C P K K OS E TSE N as da qG M T S XV TSX S E HK A ME X XT R A ASX GT SM S WX H LS E NYS E CM B SE N as da qC M OS E A IM OM R TS K LS E O T C NO G rand To tal 20 14 10 7 5 5 5 4 3 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 93 U S D Market Cap ($m) SE HK N asdaqG S TSE NYS E OM K OS E GTS M OT CB B OS E N asdaqG M TSX XT R A R TS CM SWX OT CP K AM E X T S XV H LS E BS E KLS E AS X N asdaqC M AI M OT CN O G rand T otal 21, 974.2 21, 865.0 2, 362.9 2, 037.2 1, 785.0 1, 414.8 1, 195.2 382.1 290.2 290.1 267.8 253.9 187.3 128.2 101.4 87.6 79.5 64.9 62.3 39.8 25.6 20.8 8.9 4.1 0.1 54,928.8 Avg US D Mar ket C ap ($m) S E HK NY S E OM Na s daqG S G TS M TS E OS E K OS E RT S CM XT R A SWX TS X HL S E Na s daqG M BS E AME X KLS E O TC B B TS X V AS X Na s daqC M O TC P K AIM O TC NO G rand Total 7,324. 7 2,037. 2 1,785. 0 1,561. 8 597. 6 472. 6 290. 2 202. 1 187. 3 128. 2 127. 0 101. 4 66. 9 62. 3 58. 0 39. 8 39. 8 25. 6 19. 1 13. 0 10. 4 8. 9 8. 8 4. 1 0. 1 590.6 U S D LT M T otal R ev ($m) OM N a sda qG S S E HK CM NYS E R TS BSE OS E GT S M K OS E N a sda qG M K LS E TSE TSX SWX AM E X XT RA OT CP K T S XV AS X HLS E OT CB B OT CN O AI M N a sda qC M G rand T otal 1, 716. 0 484. 6 472. 9 235. 2 218. 9 150. 8 117. 9 104. 6 91. 2 87. 1 81. 1 78. 6 77. 5 41. 1 40. 0 29. 9 29. 1 18. 9 9. 5 7. 6 5. 9 2. 1 2. 1 0. 3 0. 1 150.8 U S D LT M Total E B IT DA ($m) N a sdaqG S S E HK OM TSE K OS E GT S M CM R TS OS E XTR A K LS E AM E X AS X TSX SWX NYS E OT CN O AI M N a sdaqG M T S XV N a sdaqC M HLS E BSE OT CP K OT CB B G r and T otal 1,738. 4 662. 7 262. 9 107. 4 80. 3 52. 5 37. 6 19. 7 18. 8 13. 0 10. 8 6. 6 2. 9 0. 9 0. 8 0. 0 -1. 0 -1. 8 -8. 1 -8. 5 -10. 8 -15. 2 -27. 7 -32. 7 -49. 3 2,860.1 E B IT DA % S EHK AS X GT SM N asdaqG S TSE OS E CM OM K LS E R TS K OS E SWX N asdaqG M O T CB B TSX XT R A BSE T S XV AM E X O T CP K O T CN O N asdaqC M H LS E NYS E AI M G rand T otal 42. 6% 37. 2% 36. 3% 29. 7% 26. 8% 18. 0% 16. 0% 15. 3% 13. 7% 13. 1% 5.4% 1.9% 1.6% -5. 3% -13.5% -14.7% -23.5% -25.2% -34.9% -41.3% -50.6% #DI V /0! #DI V /0! #DI V /0! #DI V /0! 6.3%
Figure 22. Comparison by Exchange Source. Capital IQ
Page 18
Financ ing - Las t Three Months (US $ m)
Mo nth A pr-09 Co mpany N ame Co llec tive Media G OOM R adio Marin S oftware The R ubic o n P rojec t FreeW heel Cellufun Co nduc to r Inc . S c anS c o ut Batanga Viximo Do ubleT wis t IMS hopping S oc ialtext Mixerc as t S oundClo ud TubeMogul Tribal No va Tripbas e S oc ialc as t Brandtology S c an & Tar get J odange Fo odis ta A pr-09 T otal May-09 Fac eboo k One Net E ntertainment Cyberplex P eer39 OpenX Imeem E veryZing Wo nderHill BlogHer Inc . Fuhu Inc . Azuki S ys tems I Lo ve R ewards TimeBridge OLX Do c uS ign Medialets Res o nate Netwo rks Mo'Minis VoxP o p Lo op'd N etwork May-09 T otal J un-09 S ugar Inc . G rab N etwo rks beeT V G ameG ro und RingRevenue my6s ens e Cliqs et Mas hLo gic J un-09 T otal US A US A US A I srael US A I srael US A US A 1. 5 0. 5 6. 1 12.0 5.5 8.0 16.0 4. 1 3.5 2.0 12.0 8. 0 US A C hina C ana da US A UK US A US A US A US A US A US A C ana da US A US A US A US A US A I srael US A US A 0. 8 13.6 10.0 22.9 23.3 4. 0 2.0 1.5 1. 5 18. 7 40.8 16.0 205.0 6.0 5. 9 5. 0 5. 0 5.0 6. 3 7.0 7. 0 8. 8 8. 3 10.0 10.0 12.9 10.5 10.0 C ountry US A F rance US A US A US A US A US A US A US A US A US A US A US A US A G ermany US A C ana da US A US A S ingapore F rance US A US A 15.6 8. 0 1. 3 1. 2 0.6 45.3 52. 5 16.1 12.0 200.0 2.0 1.4 1.4 3.3 3.0 2. 5 4. 1 4.7 4.5 5. 0 5. 0 8. 1 7.5 10. 0 10. 0 8. 0 16. 0 13. 0 5. 0 12.0 Angel/S eed Debt financ ing P IP E S eries A S eries B 20. 0 S eries C S eries D G rand To tal 20. 0 16. 0 13. 0 13. 0 12. 0 10. 0 10. 0 8.1 7.5 5.0 5.0 4.7 4.5 4.1 3.3 3.0 2.5 2.0 1.4 1.4 1.3 1.2 0.6 149.5 200.0 20. 0 12. 9 10. 5 10. 0 8.8 8.3 7.0 7.0 6.3 6.0 5.9 5.0 5.0 5.0 4.0 2.0 1.5 1.5 0.8 334.1 16. 0 12. 0 8.0 4.1 3.5 2.0 1.5 0.5 47.6
Figure 23. Financing, Last Three Months Source. Company reports
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C ompany Des c riptio ns - C urrent Mo nth C apital Market A c tivity
C ompany
beeTV
HQ
U nited S ta tes
W ebs ite
www.bee.tv
Des criptio n
beeTV is y our v iewer’s own pers ona l c ha nnel tha t a ntic ipa tes their viewi ng needs a nd desi res while ta k ing i nto context their sc hedule, beha viors a nd even their mood. I t uses a rev olutionary , proprietary, contex tual matching algorithm inc orpora ti ng “huma n unders tanding” to offer y our viewer a n entertaining, person alized “cha nnel” a cces sible from a ll three sc reens - T V , mobile and P C . beeTV s ervices I P TV , ca ble, satellite, mo bile, internet a nd D TT platforms . It is a complement to your exis ting na viga tion sy stem. It is a find engine rather tha n a s ea rch engine. C liqs et, Inc . provides an online pla tform tha t allows developers a nd us ers to crea te, orga niz e, retrieve, s hare, and manipulate s ocia l informa tion on the W eb, des ktop, a nd mobile env ironments. It brings together photos, bookmarks , a nd locations . The compa ny ’s pla tform cons is ts of AP Is for managing va rious aspec ts of users ’ soc ia l identity giving the a bility to build s oc ial applic ations without recrea ting the wheel. C liqs et, I nc. wa s founded in 2008 and is bas ed i n J a ck s onville, F lorida. G a meG round dev elops an onl ine s ocia l network for gamers . The compa ny is bas ed in I srael. G ra b N etworks , I nc. di stributes a nd monetiz es vi deo content on the I nternet. G ra b Network s, I nc. was formerly known as Any S trea m, I nc . a nd c ha nged its name to G rab N etworks , I nc. in S eptember 2008. T he c ompany was founded i n 2000 a nd is headqua rtered in D ulles, V irginia . Ma s hLogic I nc. enga ges in developing cus tomized web brows ers. The company was founded in 2007 a nd is ba sed in Menlo P ark, C alifornia. my 6s ense Inc . prov ides mobi le technology s olutions. I t offers D igita l I ntuition tha t c onnec ts us ers with content providing wa y to experienc e informa tion on mobile and desk top. The compa ny wa s founded in 2007 a nd is ba s ed in Herz liya P itua ch, I s ra el. R ing R ev enue, I nc. prov ides online call trac k ing s ervices . The company was incorporated in 2009 a nd is ba sed in S a n ta B arba ra , C a lifornia . S uga r, I nc. operates a s an online media compa ny . It operates lifes ty le a nd enterta inment W ebsites that cov er celebrity, fa s hion, shopping, bea uty , entertainment, food, a nd hea lth topics . T he c ompany also offers a shopping engine for fa s hion and beauty categories . S ugar, I nc. , formerly k nown as S uga r P ublishing, I nc ., wa s founde d in 2006 and is hea dqua rtered in S a n Francisc o, C alifornia.
C liqs et
U nited S ta tes
www.cliqset.com
G am eG roun d G rab N etworks Mas h Logic m y6s ens e R ing R evenu e S ugar In c.
I s ra el U nited S ta tes U nited S ta tes I s ra el U nited S ta tes U nited S ta tes
www.gameground.com www.grabnetworks.com www.mashlogic.com www.my6sense.com www.ringrevenue.com www.sugarinc.com
Figure 24. Company Descriptions Source. Company reports, Capital IQ, Crunchbase
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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
www.researchcapital.com