Web 2.0 Weekly - July 28, 2009

SOFTWARE & SERVICES 28 JULY 2009 WEB 2.O WEEKLY ARE ANGELS MO RE IN TUNE WITH IPO COMPANIES THAN VCS? UN D E RP RI CI N G O F I P O S L E S S L IK EL Y W IT H A N G EL IN V E ST OR S DAVID SHORE, CFA, MBA 416.860.6784 david.shore@researchcapital.com Arun Thomas (Associate) 416.860.7666 In a new research report, the University of New Hampshire’s Center for Venture Research suggests that IPO companies are less likely to be underpriced if backed by angels. This may be because the angels are more likely to sell shares as part of the IPO than venture capitalists. The research examined all companies that went public in the U.S from 2001 through 2007, having eliminated the bubble years of 1999-2000. The study determined that angel investors are more concentrated in their investments (and diversify less) compared to VCs. As a result, angels are more likely to sell some of their shares, aligning their interest with the company, i.e. to raise as much money as possible through the IPO. Venture capitalists typically claim market gains when they sell or distribute their stakes after the 6-month lockup and want to show a large run up. An apparent implication of this study for companies seeking investments is that it helps them evaluate investment options with angels and venture investors. In our opinion, the benefits that accrue to a company from each class of investor are different and should be evaluated based on the larger strategic context. Super Rewards fetches up to $50 million in acquisition: Canadian company Super Rewards (subsidiary of KITN Media) is rumoured to have fetched $50 million in its acquisition by Adknowledge. Thus far in July, online media company Pandora (Internet Radio) has secured the largest financing transaction ($35 million). In-text advertisement company Kontera Ltd. and social networking company Ning follow with $15.5 million and $15.0 million in financings, respectively. Total capital raised so far in July is $156.7 million through 21 transactions, averaging $7.1 million per transaction. June closed with $180 million in financing on 36 transactions. The averages for the months of May (excluding the Facebook transaction) and June were $6.6 million and $4.9 million, respectively. Financing Activity Last Three Months 250.0 8.0 7.1 6.6 200.0 7.0 6.0 150.0 (US$m) 4.9 5.0 4.0 100.0 3.0 2.0 50.0 1.0 0.0 May-09 (excl FB) Jun-09 Total Average Jul-09 0.0 A strong price performance week: Most of the companies in our universe had strong stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with only 13 companies showing negative returns on the week. CDC Corp. (NasdaqGS:CHIN.A) led the group with a 65.9% return, while Gravity Co. Ltd. (NasdaqGS:GRVY) had the worst return, dropping 8.2% in the week. This report has been created b y Anal ysts that are emplo yed b y Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report. T o ro n t o 4 1 6 . 8 6 0 . 7 6 0 0 Montreal 514.399.1500 w w w . r e s e a rc h c a p i t a l . c o m Vancouver 604.662.1800 Calgary 403.265.7400 Regina 306.566.7550 (US$m) Page 2 THE WEB 2.0 UNIVERSE Ninety one public Web 2.0 companies identified: Our W eb 2.0 universe contains 91 companies, with a combined market cap of ~$59.9 billion (Figure 1). The average market cap for the group is ~$665.4 million (but a median of only $50.2 million), with average trailing revenue of $154.3 million (median $55.2 million). The companies are also generally profitable, with a median EBITDA margin of 13.2%. On a valuation basis, the overall average is 5.4x trailing revenue (median 1.9x) and 10.7x trailing EBITDA (median 9.5x). Twenty of the companies have more than 500 employees. C omparable C ompany 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 H oldings 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 D C C orp. C ha ngyou. com Limite d C hina G ate wa y C orpo ra tion C hine s e G amer In ternation al C LIC K E R In c. C ornerW orld C orporation C yberplex Inc. DADA S pA DXN Holdings B hd Dibz Inte rnation al, Inc. DigitalP o st Inte ra ctive , Inc. DigitalT own, In c. Dolph in D igital Me dia, In c. E o lith C o. L td. E xte ns ions , Inc. F luid Mus ic Ca nada, Inc. F ro gs te r Interactive P ictu re s AG G a ma nia Digital E ntertainmen t 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 u ngH o O nline E n tertainment, In c. H anbitS of t, Inc. IAC /In terActiveC orp. IAS E nergy, Inc. is ee media Inc. J umbu ck E ntertainment P ty Ltd. K A B D is tribu tion In c. K in gs oft Co . Ltd. Lin go Media Co rporation Live World Inc. Lo okS mart, Ltd. Magn itude Information S ys tems Inc. Mixi, Inc. Mode rn Times G roup Mtg AB MOK O.mobi L imited Myriad G rou p AG N E OW IZ G ames C orpo ra tion N etDrago n W ebS oft, Inc. N ete as e.com I nc. N euLion Incorporate d N eXplore Co rpora tion N gi G roup Inc. N orthgate Te chno logies L imited Open T e xt Corp. Openwave S ys tems Inc. P e rfect W orld C o., Ltd. P N I D igital Media Inc. Qu epa s a C orp. OA O R B C Information S ys tems S h anda Interactive E ntertainme nt L td. S h utte rf ly, In c. S K C ommun ications Co ., Ltd. S N AP Inte ra ctive , Inc. S N M G lobal H oldings S o cia l Media V e nures , In c. S o cia lwis e, Inc. S o hu. com Inc. S park N etworks , Inc. S pectrumDN A, Inc. T en cent Ho ldin gs L td. T he P arent C ompany T he 9 L imited T he S treet.com, Inc. T otal S po rt Online A S T ree.C om, Inc. U nis erve C ommunications Co rp. U nited Online Inc. U OMO Media , Inc V a lueC lick Inc. V O IS , In c. W ebze n Inc. W iz za rd S of twa re Co rpora tion W orlds .com In c. W oozyF ly, Inc. W ynds to rm C orporation XIN G AG Y e dan gOnline Co rp. Y n k K orea Inc. H igh Lo w A vera ge Median L TM as o f T icker 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 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 5 /31 /200 9 1 /31 /200 9 3 /31 /200 9 3 /31 /200 9 2 /28 /200 9 NA 3 /31 /200 9 5 /31 /200 9 3 /31 /200 9 1 2/31 /200 8 3 /31 /200 9 3 /31 /200 9 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 6 /30 /200 8 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 1 /31 /200 9 3 /31 /200 9 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 6 /30 /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 6 /30 /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 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 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 3 /31 /200 9 NA 3 /31 /200 9 1 2/31 /200 7 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 CGWY G T S M:308 3 C LK Z C WR L T S X:C X C M:D A DXN DIB Z DG LP DG T W DP DM A0 410 60 E XT I T S X:F MN FRG 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:K AB 38 88 T S XV : LM LV WD LOOK MA G Y 21 21 MT G B MK B MY R N A0 956 60 77 7 NT E S T S X:N LN N XP 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 MVI S C LW S OH U LOV S P XA 70 0 K IDS .Q N CT 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 ZY F W YND O1B C A0 527 70 A0 237 70 E xchange 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 GT SM OT C B B OT C B B TSX CM KL S E OT C P K OT C B B OT C B B OT C B B K OS E OT C P K TSX XT R A GT SM TSE H LS E NY S 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 S E HK T S XV OT C P K N as da qG M OT C B B TSE OM AS X SWX K OS E S E HK N as da qG S TSX 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 OT C B B 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 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 OT C P K XT R A K OS E K OS E Trading Currenc y HQ USD KR W J PY USD USD USD USD G BP USD USD USD USD TWD USD USD C AD E UR MY R USD USD USD USD KR W USD C AD E UR TWD J PY E UR USD USD USD J PY J PY KR W USD USD C AD AU D C AD HKD C AD USD USD USD J PY S EK AU D C HF KR W HKD USD C AD USD J PY INR USD USD USD C AD USD USD USD USD KR W USD USD USD USD USD USD USD HKD USD USD USD NOK USD C AD USD USD USD USD USD USD USD USD USD E UR KR W KR W U nited S ta tes S o uth 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 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 o uth K orea U nited S ta tes U nited S ta tes G ermany T aiwan J apan F inland C hina T aiwan S o uth K orea J apan J apan S o uth K orea U nited S ta tes C ana da C ana da Au s tra lia 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 Au s tra lia S witz erla nd S o uth K orea C hina C hina C ana da 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 o uth 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 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 o uth K orea U nited S ta tes U nited S ta tes U nited S ta tes U nited S ta tes G ermany S o uth K orea S o uth K orea Current Price 0 .58 26, 300 59, 500 0 .01 0 .04 0 .08 0 .31 0 .02 0 .23 3 .65 38 .17 0 .02 445 0 .01 0 .05 2 6 .28 0 .40 0 .00 0 .07 1 .40 0 .30 785 0 .08 0 .91 12 .80 60 .30 1 06, 400 0 .04 8 5 .00 1 .46 6, 860 2 17, 800 4, 485 18 .05 0 .15 0 .08 0 .35 1 8 1 .10 0 .04 1 .23 0 .01 685 000 .00 247 .50 0 .08 4 .10 32 500 .00 6 41 .19 0 .85 1 32 200 .00 38 .35 37 .23 2 .95 35 .39 1 .48 1 1 .15 52 .39 15 .01 9 520 .00 0 0 .00 0 0 .77 59 .07 2 0 103 0 .02 8 .35 2 .08 0 .03 10 .76 0 .07 8 .95 0 12 0 3 .58 0 .49 0 .11 0 .15 0 .10 30 .00 8, 060 5, 660 U S D Market C ap ($m) 1 6.1 18 2.5 3 3.9 0 .6 1 .9 2 .3 1 3.7 6 .5 1 9.5 38 7.3 2,0 99.4 0 .3 1,1 38.4 0 .7 3 .2 10 2.9 14 4.7 2 6.2 0 .0 4 .9 3 7.9 1 5.5 4 5.8 3 .6 4 4.2 4 2.8 27 8.6 10 7.9 5 1.1 1,8 38.4 27 2.6 4 0.6 1,6 10.2 26 1.7 7 9.1 2,7 24.0 1 0.5 3 .8 1 4.0 8 1.5 1,0 89.9 1 2.7 1 .1 2 1.0 3 .4 1,1 04.4 2,1 93.9 5 .4 8 1.5 55 0.7 42 1.5 5,2 90.0 8 9.7 3 9.0 4 1.8 2 7.8 1,9 59.2 24 5.7 1,7 21.3 4 6.8 1 2.7 15 9.5 3,4 98.0 37 7.8 32 1.2 2 .2 0 .0 0 .0 3 3.4 2,2 60.3 4 9.4 6 .8 23,8 94. 9 0 .4 21 3.0 6 3.7 0 .1 11 6.2 1 .6 74 8.0 9 .4 1,0 17.5 5 .0 4 2.4 2 3.4 5 .8 2 .6 1 .8 22 5.0 10 1.8 2 4.3 23,8 94. 9 0 .0 665.4 5 0.2 U S D LT M To tal R ev ($m) 4.1 93. 0 64. 8 0.1 0.1 8.4 7.1 0.3 0.0 389 .9 222 .5 6.7 56. 2 2.5 1.3 75. 3 239 .0 78. 6 NA 0.7 NM 0.8 14. 8 NM 5.0 3.3 126 .0 77. 2 6.0 219 .0 183 .6 46. 1 30. 8 108 .1 55. 6 1 ,40 6.4 0.0 1.6 14. 7 76. 1 129 .1 0.9 11. 4 60. 7 0.1 126 .4 1 ,84 6.6 1.2 40. 0 199 .3 87. 0 470 .7 18. 1 0.7 92. 6 116 .3 782 .6 197 .2 228 .2 20. 0 0.1 154 .2 570 .3 215 .2 185 .3 3.3 2.0 0.1 0.0 460 .0 54. 3 0.1 1 ,20 4.0 112 .0 250 .5 67. 0 2.2 215 .6 24. 1 811 .2 0.6 591 .7 0.0 23. 1 5.6 0.0 NM NA 53. 9 55. 2 10. 6 1 ,846 .6 0.0 154.3 55. 2 US D L TM T otal E B ITDA ($m) (4 .4) 2 0.2 4 .1 (2 .3) (2 .0) (1 2.6) (9 .5) (1 .9) (4 .6) 3 0.8 13 5.1 (6 .6) 3 1.5 (1 .2) NM 7 .8 3 5.0 1 0.9 NM (2 .6) (2 .5) (3 .7) (3 .5) NM (6 .9) (6 .2) 2 0.9 1 8.3 (1 5.6) NM NM 1 2.7 1 1.1 1 9.4 (1 4.9) 4 2.6 (0 .8) (5 .1) 5 .5 9 .0 5 2.0 (1 .6) (0 .0) (3 .8) (3 .1) 4 4.8 28 3.7 (2 .4) 0 .8 5 3.5 3 4.4 30 5.9 (1 1.8) (6 .2) 1 1.1 (2 7.3) 19 9.2 (2 .1) 12 4.6 0 .5 (1 0.8) 2 0.1 26 1.0 2 8.3 1 2.1 0 .9 (0 .7) (0 .1) (4 .8) 20 0.5 1 1.8 (2 .6) 58 3.1 (1 3.5) 8 5.4 1 .9 (1 .1) (1 3.3) 0 .1 17 7.3 (0 .5) 10 5.5 (1 .1) (0 .5) (5 .3) (0 .8) NM NM 1 6.8 1 1.9 (0 .8) 58 3.1 -27.3 34.0 0 .8 E BITD A % NM 21 .7% 6 .3% NM NM NM NM NM NM 7 .9% 60 .7% -9 8.9% 56 .0% -4 5.8% NM 10 .3% 14 .6% 13 .8% NM NM NM NM -2 3.6% NM NM NM 16 .6% 23 .7% NM NM NM 27 .5% 36 .0% 18 .0% -2 6.8% 3 .0% NM NM 37 .2% 11 .9% 40 .3% NM -0 .4% -6 .3% NM 35 .4% 15 .4% NM 1 .9% 26 .8% 39 .5% 65 .0% -6 5.2% NM 12 .0% -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 0.6% NM 43 .6% 21 .7% NM 48 .4% -1 2.0% 34 .1% 2 .9% -5 0.6% -6 .2% 0 .2% 21 .9% -7 8.2% 17 .8% NM -2 .4% -9 4.5% NM NM NM 31 .2% 21 .6% -7 .6% 65 .0% -9 8.9% 6.8% 13 .2% T E V/LT M R evenue 5.1x 1.6x 0.1x 1 5.6 x 4 4.1 x 2.6x 2 3.6 x 1.0x 8.6x 0.0x 1 9.1 x 0.3x 3.6x 1.3x 0.8x 0.5x 8.8x 2 1.3 x 3.2x 6.8x 1 2.5 x 2.0x 0.6x 7.8x 1.1x 4 9.6 x 2.2x 1.1x 0.6x 1.8x 0.6x 1.1x 8.3x 1 2.1 x 0.0x 7.8x 1.5x 3.5x 2.2x 2.7x 3.4x 4.2x 0.0x 0.2x 2.6x 0.7x 0.4x 2.3x 0.0x 0.0x 1.5x 1.7x 0.2x 1.1x 4.6x 4.1x 0.9x 2 1.7 x 0.2x 4.6x 0.5x 0.2x 1.3x 1 5.4 x 1.5x 4.4x 3.2x 2.0x 4 9.6 x 0.0x 5 .4x 1.9x TE V /L TM E BITDA 7. 6x 1. 2x 13 .0x 14 .2x 34 .1x 12 .7x 5. 6x 3. 7x 12 .2x 2. 5x 12 .0x 19 .7x 1. 6x 9. 6x 20 .7x 22 .0x 9. 6x 10 .1x 8. 5x 0. 1x 10 .2x 0. 8x 0. 3x 0. 1x 11 .0x 26 .7x 0. 7x 9. 4x 4. 2x 44 .9x 5. 8x 8. 7x 10 .2x 9. 4x 44 .9x 0. 1x 10. 7x 9. 5x E mplo yees 11 NA NA 3 4 53 69 9 46 2, 227 6 28 37 NA 22 NA NA 5 78 NA NA 7 3 NA NA 2 NA NA NA NA 1 08 1, 570 7 51 4 69 NA NA NA 3, 200 NA NA 72 NA 2, 271 NA NA 90 14 NA 2, 969 NA 4 05 NA 2, 426 3, 109 2 37 NA NA NA 3, 400 6 30 2, 096 NA 74 NA 3, 124 5 14 NA 11 33 NA NA 3, 197 1 83 7 6, 123 3 47 1, 626 3 10 16 7 00 NA 1, 469 NA 1, 189 4 NA 1 10 1 NA NA 2 39 NA NA 6,1 23 1 900 4 37 Figure 1. Web 2.0 Universe Summary Source. Capital IQ Page 3 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 ) Super Rewards fetches up to $50 million in acquisition: Canadian company Super Rewards (subsidiary of KITN Media) is rumoured to have fetched $50 million in its acquisition by Adknowledge. Thus far in July, online media company Pandora (Internet Radio) has secured the largest financing transaction ($35 million). In-text advertisement company Kontera Ltd. and social networking company Ning follow with $15.5 million and $15.0 million in financings, respectively. Total capital raised so far in July is $156.7 million through 21 transactions, averaging $7.1 million per transaction. June closed with $180 million in financing on 36 transactions. The averages for the months of May (excluding the Facebook transaction) and June were $6.6 million and $4.9 million, respectively. Financing Activity Last Three Months 250.0 8.0 7.1 6.6 200.0 7.0 6.0 150.0 (US$m) 4.9 5.0 4.0 100.0 3.0 2.0 50.0 1.0 0.0 May-09 (excl FB) Jun-09 Total Average Jul-09 0.0 Figure 2. Financings, Last Three Months Source. Company reports (US$m) (US$m) 100.0 150.0 200.0 250.0 50.0 0.0 Pandora raises $35 million and Super Rewards is acquired for up to $50 million: On the acquisition front, Super Rewards (subsidiary of KITN media) was acquired by AdKnowledge for a rumoured $50 million. On the capital raise front, Pandora had the largest raise so far in July, securing a $35 million round. Recently, copyright holders reached agreement with a group of webcasters regarding royalty rates. Pandora, which derives most of its revenue from advertising, indicated that it would be joining the new agreement as well. For additional details on financings, see Figures 23 and 24 (at end of note). Figure 3. Capital Market Activity, Last Three Months Source. Company reports Financing & M/A Summary - Last Three Months Facebook People Media Super Rewards AdLink Internet Media Pandora Media StumbleUpon One Net Entertainment xoopit ConnectEdu Sugar Inc. Kontera Ltd. Ning Tumri Boku Cyberplex QuickPlay Media Wimba Grab Networks Peer39 AdChina Causes OpenX Intent Media Imeem Goojet SAS Outspark EveryZing Acquia, Inc AdMeld Inc. beeTV SBNation I Love Rewards BlogHer Inc. WonderHill Gist blueKiwi Software SA Nokeena Metaversum Fuhu Inc. Bubble Motion Invodo Sense Networks Zoosk Azuki Systems Gather DocuSign OLX TimeBridge Taomee MojoPages Animoto GameGround OPEN Sports network Medialets Nexage StyleCaster RingRevenue TweetDeck Crowdcast YuMe eRepublik ClickFuel ProtonMedia Newser LLC Inigral AdEx Media GROU.PS my6sense Resonate Networks Yapta OneTXT Cliqset Lat49 Aloqa Mo'Minis VoxPop Tributes.com CoTweet AdWhirl Glubble LiquidPlanner Clikthrough TodaCell Picaboo Loop'd Network MashLogic People Capital Jaxtr Jul-09 Jun-09 May-09 Page 4 Page 5 Social Network remains the most active sector in dollars raised, while Ad Network remains the most active in number of transactions: Following recent trends, Social Networks as a sector saw the most activity in dollars raised ($265.5 million), largely attributed to the $200 million investment by Digital Sky Technologies in Facebook. However, it was the Ad Network sector that saw the most transactions (17), raising $153.2 million (Figure 4). Capital Market Activity by Sector - Last Three Months 300.0 250.0 200.0 (US$m) 150.0 265.5 100.0 153.2 50.0 80.0 76.6 51.5 0.0 Online Dating Gaming Music Infrastructure Blog Social Networks Virtual World Ad Network 35.0 31.0 29.8 29.0 Comment/Reputation 26.4 Video 21.5 Mobile 19.3 Enterprise 18.9 Online Learning 17.0 Collaboration 16.5 Media 13.3 Search 13.0 Mobile Payment 6.8 Aggregation 6.3 Widget 5.2 Vertical Communities 3.2 Microblog 1.0 Mobile Ad 1.0 Analytics 1 # companies 13 17 1 5 8 1 3 6 1 4 4 6 3 3 3 2 1 1 1 2 1 1 Figure 4. Capital Market Activity, by Sector, Last Three Months Source. Company reports Page 6 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 earlier this year. However, the index has recently had a much stronger recovery relative to the NASDAQ index (Figure 5). 130 Web 2.0 Index Price Performance 120 110 100 90 80 70 60 50 40 10/14/08 10/24/08 11/17/08 11/27/08 12/19/08 12/31/08 7/28/08 8/19/08 8/29/08 9/10/08 9/22/08 10/2/08 11/5/08 12/9/08 1/12/09 1/22/09 2/13/09 2/25/09 3/19/09 3/31/09 4/10/09 4/22/09 5/14/09 5/26/09 6/17/09 6/29/09 7/21/09 8/7/08 2/3/09 3/9/09 5/4/09 6/5/09 7/9/09 ^COMP - Share Pricing Figure 5. Web 2.0 Price Performance Source. Capital IQ Index: Web 2.0 X (Market Cap Weights) - Index Value Page 7 A strong price performance week: Most of the companies in our universe had strong stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with only 13 companies showing negative returns on the week. CDC Corp. (NasdaqGS:CHIN.A) led the group with a 65.9% return, while Gravity Co. Ltd. (NasdaqGS:GRVY) had the worst return, dropping 8.2% in the week. CDC Corp. K ings of t Co. Ltd. Cy berplex Inc. United Online Inc. LookS mart, Ltd. A Q Interactive, Inc. Tree.Com, Inc. Northgate Technologies S hutterf ly , Inc. Quepas a Corp. XING A G Giant Interactive G roup, Inc. DA DA S pA Frogs ter Interactive Pictures TheS treet.com, Inc. IA C/InterA ctiveCorp. Modern Times G roup Mtg A B V alueClick Inc. NetDragon WebS oft, Inc. NEOWIZ Games Corporation Y edangOnline Corp. G ree, Inc. Webz en Inc. Perfect World Co., Ltd. Open Tex t Corp. Openw ave S y s tems Inc. Netea s e.com Inc. G ameOn Co Ltd. Mix i, Inc. S K Communications Co., Ltd. Eolith Co. Ltd. S park Netw orks , Inc. PNI Digital Media Inc. Ngi G roup Inc. G igaMedia Ltd. A ctoz S of t Co., Ltd. HanbitS oft, Inc. Tencent Holdings Ltd. Y nk K orea Inc. The9 Limited Gravity Co., Ltd -20.0% Figure 6. 1-Week Price Performance Source. Capital IQ 1 Week P rice P erformance 12.4% 11.0% 10.0% 9.8% 8.2% 7.8% 6.5% 6.4% 5.3% 5.3% 5.0% 4.9% 4.9% 4.5% 4.5% 4.0% 3.0% 2.7% 1.9% 1.5% 1.2% 1.1% 1.1% 1.1% 0.7% 0.5% 0.4% -0.1% -0.3% -0.6% -0.8% -1.3% -1.4% -2.2% -3.5% -3.5% -3.7% -4.4% -5.1% -8.2% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 65.9% 70.0% Page 8 INDUSTRY NEWS (PARTNERSHIPS, FINANCIAL RESULTS, NEW PRODUCTS) K ey Developments C ompany C LIC KE R Inc. (OT CB B: C L KZ) Headline Click er S eek s F unds Notes Clicker Inc . s aid in a S E C 10-Q filing, “C ash and cas h equiv alents were $1,355 at May 31, 2009 compa red to $36, 678 at May 31, 2008. W e recorded a los s of $2, 563,925 for the nine months ended M ay 31, 2009 compa red to a los s of $1,4 62,423 for the s a me period i n 2008. T hes e fac tors a nd our abili ty to meet our debt obliga tions from current opera tions , a nd the need to ra is e a dditiona l capita l to a cc omplish our objectives ra i ses doubt a bout our a bility to continue as a going c oncern. W e expect s ignifi cant c apita l expenditures during the next 12 months , contingent upon ra ising ca pi tal. T hese anticipated ex penditures a re for s oftwa re development, as sets additi ons, adminis trative overhea ds and work ing c apita l requirements. W e do not ha ve sufficient funds to c onduct our opera tions for more than a month and we will need an a dditiona l $2, 000,000 to fund our antic ipated opera tions for the nex t 12 months, depending on revenues from operations. W e have no contrac ts or commitments for a dditiona l funds and there ca n be no a ss urance that financing will be a va ila ble in a mounts or on terms a cc epta ble to us , if a t a ll. W e will need to obtain a dditional ca pita l in order to ex pa nd operations and become profita ble. I n order to obta in ca pi B eyond Commerce Inc . bring job opportunities to Detroit through its loc al bus ines s sea rc h directory a nd a dv ertis ing network, www.Loca lAdLink .com. L ocalAdLink hopes to initially employ 500 full & pa rt-time A ccount E xecutives a s independen t sa les repres enta tives in the D etroit area ; a nd up to 5, 000 people in the next s ix months . LocalAdLi nk will offer free online training, da ily webi na rs and regiona l & corpora te tra ining events. Acc ount E xec utives wil l be respons ible for ma rk eting adv ertis ing s erv ices to s mall to medium-s ize busines s es, either loca lly or na tiona lly. L oc alAdLink will be hos ting a free bus ines s overv iew a nd introduction for potentia l Acc ount E x ecutives in the Detroit a rea on J uly 23, 2009 from 6: 30 p. m. to 9: 30 p. m. a t the R a mada P la za Hotel in T roy. S pec ia l guests will inc lude D etroit na tiv e D a vid Moceri, Direc to r of S ales & P roduc t De velopment and D r. S cott E lliott, Advisory B oa rd. T ree. Com Inc. launched a new fea ture-rich webs ite, including a suite of ea s y -to-us e, comprehens ive financia l services , ma king it the premier solution for a ll pers ona l fina nc ial needs . LendingT ree has a lready helped over 28 mil lion customers sea rc h for the right loans , a nd now the company is lev era ging its experience and k nowledge to help cons umers with other a s pec ts of their financ ial lives . T he redes igned s ite now offers produc ts and services in a ll financia l categories --from mortgages and insurance to credit c ards and money management. S ome of the new fea tures include: Money R ight: Money R ight a llows consumers to aggregate a ll of their pers ona l fina nc es and accounts in a sing le convenient inte rfa ce. Money R ight is a n online persona l fina nce guide with ea s y-to-understa nd, pra ctica l recommendations rega rding budgeting, credit s cores , s a vings a cc ounts , loa ns and more, a ll customized specifically to each user. Look B 4U Lock : T his feature provides cus tomers with a critical last-minute ch eck to mak e s ure they are getting the best deal pos sible before loc king into a loan. Us ers enter the terms of a mortga ge offer from a ny lender and rec eive a rating a nd poi nt-by -point recommendations for ea ch of the loa n's v ariables. B eyond Commerc e, Inc . (OT CB B: B Y OC) B eyond Commerce I nc. B rings J ob O pportunities to Detroit T ree. Com, Inc . (Nas daqG M: TR E E ) L endingTree E mpowers C onsumers with New R a nge of P ersona l F inance Tools OA O R BC Info rm atio n S ys tem s (R TS : R B CI) L eadRelevanc e, L LC ; Tree.C om, In c. (Nas daqG M:TR E E ); webloyalty. c om, Inc. OAO R B C I nformation S y stems announce d it will receive OAO R B C I nformation S y stems (R T S : R B C I ) a nnounc ed a priva te placement of c ommon sha res for the gros s proceeds of $80 million on $80 million of funding from ON E XI M G roup. J uly 21, 2009. New inv estor O N E X IM G roup will gain 51% s ta k e in the c ompany and will ga in the ma jority seats in company's boa rd of directors. T ree. Com, I nc. (Nas da qG M: T R E E ) a cquired L eadR elev ance, L LC from webloya lty. c om, Inc . T ree. Com, I nc. (N asda qG M: T R E E ) a cquired L ea dR elevance, L LC from webloy a lty .com, Inc. on J uly 21, 2009. T ree. Com, I nc. (N asda qG M: T R E E ) co mpleted the acquis ition of L ea dR elevance, L LC from webloy a lty .com, Inc. on J uly 21, 2009. S pec trumDNA, Inc . (OTC BB :S PXA) L o okS mart, Ltd. (Nas daqG M: LOOK ) S pec trumDN A I nc . Appoints J eff Nola n to its B oa rd of S pectrumDN A I nc. a nnounced the appointment of J eff Nola n, entrepreneur, venture c apitalis t and prolific s ocia l media stra tegis t, to its board Direc tors of directors . Mos t recently , Mr. N olan was the V P Corporate D evelopment at N ews G ator T echnologies . L ooks mart L td. Announces Full R elea s e of S martR ota tion L ookS mart L td. a nnounc ed the full rele a se of S martR ota tion, a cos t-per-a ction (C P A) driven tool that automatic ally s erves the bes tperforming a d c reative in an a d group based on c onversion da ta from a tra ck ing pixel. T he new tool, a fea ture of LookS mart's ad rota tion, a llows a dv ertis ers to optimize ca mpa igns by convers ion events like s ales sign-ups , downloads, and regis trations to drive higher performanc e. S martR ota tion automa tic ally serves the ad crea tive with the best C P A in a c ampa ign, provides detailed informa tion about which key words a nd traffic s ources a re performing, ea s y to integra te into online ca mpaign management a nd is built on L ook S ma rt's AdC enter platform. V O IS I nc. La u nches V OI S Questions and Answers V O IS I nc. announced it has la unched V OI S Q uestions and Answers (www.v ois. com/a ns wers), a n ans wers s ervic e tha t a llows its members to a sk their busines s-rela ted questions, and rec eive answers fro m the thousa nds of ex perts in the V O I S network. T he s ervice gives the site's 100,000 plus members a fa st and reliable wa y to get the industry specific ans wers they want ans wered and builds upon their profes sional reputation by res ponding to questions they a nswer releva nt to their ex pertis e. Q ues tions and ans wers a re tied to a member's profess ional profile, rather than a n a nony mous username as on other ans wer network s, offering more credible respons es. Q uestions ca n be ta rgeted to a specific member's network , or they may be opened up to the entire V OI S network from a round the world. E xperts benefit by res ponding to member questions with the hope of bei ng awarded the bes t a ns wer, a nd winning any credits a s soc ia ted with that awa rd. For those members who cons istently provide expert ans wers , V O I S will promote their ex pertis e to other members , providing a grea ter opportunity to build soc ial capita l a nd to a tta in more bus iness . Modern Times G roup Mtg AB reported una udited cons olida ted earnings res ults for the second qua rter a nd s ix months ended June 30, 2009. F or the quarter, the company reported net income a ttribu table to equity holders of the pa rent wa s S E K 425 million or S E K 6. 45 per diluted sha re on net sa le of S E K 3,584 million a ga ins t net income attributa ble to equity holders of the parent was S E K 1, 570 million or S E K 23. 68 per diluted s hare on net s ale of S E K 3,318 milli on in the same period of la st y ear. O pera ting inc ome wa s S E K 588 million a ga i nst S E K 1, 756 million in the sa me period of la s t y ear. Inc ome before tax was S E K 566 million agains t S E K 1, 785 million in the s ame period of las t yea r. N et cas h flow from operations was S E K 695 million aga ins t S E K 986 million in the s a me period of la s t year. R eturn on equity was 19% a ga inst 20% in the prev ious quarter. T he G roup's net debt posi tion, which is defined as cas h a nd ca s h equiva lents a nd interes t bea ring as s ets les s interes t bearing liabilities , a mounted to S E K 3, 603 (net c ash of 1, 675) million a t the end of the reporting period. T his c ompa red to a net debt position of S E K 3, 925 million as at M arch 31, 2009. V O IS I nc. introduce d M icro. V OIS for T witter. M icro. V O I S , built on top of T witter, is the ea sies t way for T wi tter us ers to tell others that they wa nt work or ha ve work to offer. U sing Mic ro. V OIS is a s ea s y as a dding # wa ntwork or #havework in a T witter update (also k nown as a 'T weet'). As members Tweet jobs a nd oppo rtunities, M icro.V O I S monitors th e releva nt da ta and he lps T witter members find wh a t they a re looking for. T ry I t--Actual ly, us ing M icro. V OI S is easier than explaining it. T ry it right now: U sing Twitter, find s omeone who ha s work or wa nts work . Then T weet your projec t or idea with the ha shtag # ha vework or #wa ntwork (for work wa nted). T he M icro. V O I S robot a utoma tic ally a dds a ll of thos e T weets to the M icro. V O IS feed. V OIS , Inc . (OTC BB :VOIS ) Modern Times G ro up Mtg AB (OM: MTG Modern Times G roup Mtg A B R eports U na udited Cons olida ted E arnings R es ults for the S econd Quarter B) a nd S i x M onths E nded J une 30, 2009 V OIS , Inc . (OTC BB :VOIS ) V O IS I nc. I ntroduces M icro. V OI S for Twitter DigitalPo s t Interac tive, In c. (OT CB B: DG L P) Digita lP os t Intera ctiv e I nc. to P rovide Additiona l S oftware Digita lP ost Intera ctive I nc. a greed to provide additiona l s oftwa re development a n d c onsulting services for Loca l. com C orporation, acc ording to the terms of a pre-exis ting profess ional services rel a tions hip with L oc al.com. P ursua nt to the current agreement, DigitalP os t will des ign, Development a nd C onsulting S ervices for Loca l.c om Corpora tion develop and deliv er s oftware a s pres cribed by the releva nt sta tement of work , with product deliv ery expec ted to be c ompleted during the third a nd fourth quarter of 2009. D igita l P ost will ea rn a total fee of $50,000 for the des ign, development and delivery of such s oftwa re. Page 9 MOK O.mobi Limited (AS X: MKB ) MO K O . mobi Limited S igns Agreement with Airtel MO K O . mo bi Limited has s igned an a greement with B harti Airtel Ltd. The Airtel contrac t joins previously ann ounced contracts with two other Indian mobile c arriers, R elia nc e M obile and I dea C ellular. T he s ervice with Airtel will be based on a us er pay s subs c ription and premium a ctivity bus iness model, where M O K O .mobi is pa id a s ha re of thes e rev enues from the mobile opera tor. T he Airtel deploy ment of MO K O will follow other c arrier l aunches in US A, B razil, I ndia, M alays ia and U K a nd is expected to be completed by the end of 2009. C anpages , Inc .; ZipLoc al Inc. (T S XV: ZIP. H); ZipLocal Inc. , S ubs tantially All As s ets Ca npages , I nc. completed the a cquisition of subs ta ntia lly Ca npages , Inc. agreed in principle to acquire s ubsta ntiall y all the a s s ets of Z ipL oca l I nc. (T S X V : Z IP ) for C AD 2.4 million on Ma y 6, 2009. a ll the a ss ets of ZipL oc al Inc. (T S X V : ZI P ). Ca npages , Inc. s igned a purc ha se agreement a cquire su bsta ntia lly a ll the as sets of Z ipL oc al I nc. on J une 19, 2009. As per the terms of the trans action, a n entity c ontrolled by John L . Albright, C hairman of the B oard of Zi pLoca l will acquire s ubsta ntially a ll the a s s ets of Z ipL oc al Inc . a nd then trans fer the a s sets to C anpa ges, Inc. J ohn L. Albright will pa y CAD 0. 45 million in ca s h and will cancel C AD 1. 93 million of sec ured debt currently in defa ult. C anpa ges will is s ue its common stock to J ohn L . Albright as cons ideration and va lue of stoc k will be equal to the va lue paid by John L . Albright. John L. Albright will provide a n a dditional C AD 1 mill ion ca sh indemnity to C anpa ges to fac ilitate the trans action. T ermina tio n fee for the trans a ction pa y a ble by ZipLoca l is C AD 0. 15 million. T he deal is s ubject to regulatory a pprovals , incl uding the a pprova l of the T S X V enture E x cha nge and a pp rova l from s ha reholders of Z ipL oc al. T he B oa rd of ZipLoc al, upon recommenda tion of the independent committee, unanimous ly recommended the tra ns action. Corma rk S ecurities Inc. ac ted a s financia l a dvis or to the S pecia l C ommit E lectronic Arts Inc . a nd NetDragon W ebs oft I nc. , wi th its s ubs idiaries collectively k now a s the 'G roup' a nnounc ed a lic ensing agreement for the development of a new ma ss ively multi-player online role playi ng game (M MO R P G ) ba sed on 'U ltima O n line'( T M) from E lectronic Arts. As part of the agreement, N etDra gon will develop the new Ultima O nline(T M) in colla bora tion with E A's My thic E ntertainment, and hav e the exc lusiv e opera ting li cens e for C hina, H ong K ong, M ac au a nd India . IB 3 Network s I nc. and its wholly owned s ubsidiary iB eam S olutions, a Mic ros oft G old Certified P artner a nd a C is co Certified S elec t P artner, a nnounced the avai lability of iB 3 B ac kup, it's online, s ecure, remote online hos ted bac kup solution. iB eam S olutions has developed this service, powered by 3X sta te of the a rt ba ck up appliances , to give customers the ability to back up their sy stems for da ta protection a nd disas ter recovery. T his s ervice a llows c ustomers to ma na ge their back ups a nd restores from an ea s y to us e web ba s ed interface, and includes dedup lication, vers ioning and ma ny adva nc ed features. T he serv ice is des igned for cus tomers with up to 10 0G B of data, and thos e with more da ta ca n purchas e and hos t thei r own a pplia nc e with iB eam S olutions . For thos e with under 100 G B of da ta , th e s ervice will c os t $0.50 per G B per month pl us nomina l s etup fees . In acc orda nc e with the TS X V enture E x change P olic y 2.5, Z ipLoca l I nc. ha s not ma in tained the requirements for a T S X V enture E x change T ier 2 c ompa ny. T herefore, effective J uly 24, 2009, the c ompa ny 's listing will trans fer a nd resume tra ding on the N E X , the c ompany 's tier cla s sific ation will ch ange from Ti er 2 to NE X , and the filing and s ervic e office will change from T oronto to the NE X . As of July 24, 2009, the company is s ubject to restrictions on share is suances and certa in type s of payments a s s et out in the NE X policies . Changy ou.com Limited a nnounc ed that the c ompany had ma de inroa ds into North A merica , T aiwa n, as well as V ietna m and would fora y into the E uropean ma rk et within two to three y ea rs. T he company als o forecas ted tha t the company would opera te four online games simultaneously at the beginning of 2010. Digita lP ost Intera ctive I nc. s igned a n additional contra ct to de velop a content platform for a Internet s ea rch company . The new pla tform, scheduled for delivery by the end of S eptember 2009, will s upport the c ustomer's strategy to p rovide increas ingly higher levels of c ontent for its bus ines s cus tomers . T his is the third contrac t awarded to D igita l P ost by this comp a ny. E lec tronic Arts Inc . (Nas daqG S : E R TS ); E lectronic Arts I nc. a nd N etD ragon E nter Agreement to Develop U lti ma O nline NetDrago n W ebS oft, Inc. (S E HK :777) IB 3 Networks , Inc. (OT CB B: IB NW ) IB 3 N etwork s I nc. Announces N ew O nline R emote B a ck up S ervice ZipL oc al Inc. (TS XV: ZIP.H) ZipLoca l’s Lis ting T o T ra nsfer T o NE X C hang yo u. c om L imited (Nas daqG S : C YOU) DigitalPo s t Interac tive, In c. (OT CB B: DG L P) MOK O.mobi Limited (AS X: MKB ) Changy ou.com E nters N orth America , T aiwa n and V ietn am Mark et a nd P lans to F ora y into E urope Digita lP os t Intera ctiv e W ins Additiona l Contract from Internet S earch C ompany MO K O . mobi Limited S ec ures D eal on AT& # 38;T M obiles MO K O . mo bi Limited has s ecured a dea l for its M O K O M usic on s elected AT &T mobile handsets . T he C ha t & S ha re platform's new development includes enha nc ed music community which ena bles us ers to s ea rch a nd dis c over, refer a nd buy, full-length trac ks , ring tones a nd a ns wer tones from their mobile. B eyond Commerce I nc. Appoi nts P aul W . Morris on to the B eyond Commerce Inc . a nnounc ed tha t P aul W . Morris on ha s been a ppointed to its boa rd of direc tors . M r. Morris on is the six th me mber of B oard of Directors the boa rd of di rectors of B ey ond C ommerc e, whic h als o includes R on L oveles s, M ich a el W ars insk e, B a rry F alk, M urra y W illia ms, and R obert Mc Nulty. All are independent board members with the exceptions of Mr. W illiams and Mr. M cN ulty , C ha irma n of the B oa rd and C hief E xec utiv e O ffic er. P aul W . Morris on is currently the C hief E xecuti ve O fficer a nd P resident of O mniR elia nt H oldings Inc . IAC /InterActiveC orp La unch of P roduction Compa ny, Notiona l; Appoints R i ck y V a n V een to H ea d N otiona l IAC /I nterA ctiveC orp. a nnounc ed the launc h of Notiona l, a video content c ompa ny born out of its enterta inment property CollegeH umor. com. CollegeH umor's origina l video s have been viewed over 300 million times a nd its viewers wa tch 100 y ea rs worth of video content eac h month. B uilding on this succ ess ful foundation the new production company will crea te programming of a ll genres for a ll demogra phic s , to be distributed ac ross multiple media platforms, inc luding television. T he new endeavor wa s conceiv ed a s a n ex tens ion of CollegeH umor. co m's industry-leading c ontent s ensi bility and production capabilities . B y building o n top of that ba s e, Notional hopes to bring the DN A of an internet compa ny to an in terna tiona l producti on compa ny . B ut unlik e CollegeH umor's y oung ma le-focus ed a udie nce, N otional's content will a ppeal to a much broa der bas e. N otiona l will be hea ded by R ick y V an V een, who will trans ition from his c urrent role a s E ditor-in-C hief of CollegeH umor. B eyond Commerc e, Inc . (OT CB B: B Y OC) IAC /InterAc tiveC orp. (Nas daqG S : IAC I) Figure 7. Key Developments Source. Capital IQ Page 10 VALUATION Online Gaming companies lead market-cap charts: Thirteen companies in our W eb 2.0 universe top US$1 billion in market capitalization (Figure 8). Fifty-nine of the 92 companies have market caps under US$100 million, with 28 under US$10 million. Online gaming companies dominate the top of the list, led by Tencent Holdings with a market cap over US$20 billion. Market C ap (US D m) Tenc ent Holdings L td. Neteas e.c om Inc . S handa Interac tive Entertainment L td. IA C/InterA c tiveCorp. S ohu.c om Inc . Modern Times G roup Mtg A B Changy ou. com L imited Open Tex t Corp. G iant Interac tive G roup, Inc . Perfect World Co., L td. G ree, Inc . Chines e Gamer International Mix i, Inc . K ings oft Co. L td. V alueClic k Inc . United Online Inc . NEOWIZ Games Corporation NetDragon WebS oft, Inc . CDC Corp. S hutterfly, Inc . S K Communic ations Co., L td. G amania Digital Entertainment Co. , G igaMedia L td. G ungHo Online Entertainment, Inc . Openw ave S ys tems Inc . XING A G The9 L imited A c toz S of t Co., L td. OA O R B C Information S y s tems DA DA S pA Tree.Com, Inc . G ameOn Co L td. Cy berplex Inc . Y edangOnline Corp. NeuLion Inc orporated My riad G roup A G K A B Dis tribution Inc . HanbitS oft, Inc . TheS treet.c om, Inc . G eoS entric Oy j S park Netw orks , Inc . PNI Digital Media Inc . Eolith Co. L td. Fluid Mus ic Canada, Inc . Frogs ter Interactive Pic tures A G Webz en Inc . Ngi G roup Inc . Gravity Co. , L td NeXplore Corporation DigitalTow n, Inc . A Q Interactive, Inc . S oc ialw is e, Inc . Northgate Tec hnologies L imited DXN Holdings B hd Y nk K orea Inc . W iz z ard S oftw are Corporation LookS mart, L td. B roadWebA s ia Inc . A c celeriz e New Media, Inc . Dolphin Digital Media, Inc . J umbuck Entertainment Pty L td. B eyond Commerc e, Inc . Quepas a Corp. L ingo Media Corporation IA S Energy, Inc . UOMO Media, Inc S pec trumDNA , Inc . B right Things plc Worlds .c om Inc . MOK O.mobi L imited V OIS , Inc . DigitalPos t Interactive, Inc . is eemedia Inc . Ex tens ions , Inc . Magnitude Information S ys tems Inc . CornerWorld Corporation Wooz y Fly, Inc . B etaw ave Corporation S NA P Interactive, Inc . B igs tring Corp. Wy nds torm Corporation Unis erve Communications Corp. L iveWorld Inc . CLICK ER Inc . A s s oc iated Media Holdings Inc . The Parent Company China G atew ay Corporation Total S port Online A S S NM G lobal Holdings S oc ial Media V enures , Inc . Dibz International, Inc . 0 2724. 0 3498. 0 2260.3 2193.9 2099.4 1959.2 1838.4 1721.3 1610.2 1138.4 1104. 4 1089. 9 1017.5 550. 7 421. 5 387.3 377.8 321.2 278.6 272.6 261.7 245. 7 225.0 213.0 182. 5 159.5 144.7 116. 2 107.9 102.9 101.8 89.7 81.5 81.5 79.1 63.7 51. 1 49. 4 46. 8 45. 8 44. 2 42. 8 42. 4 41. 8 40. 6 39. 0 37. 9 33. 9 33. 4 27.8 26.2 24.3 23.4 21.0 19.5 16.1 15.5 14.0 13.7 12.7 12.7 10.5 9.4 6.8 6.5 5.8 5.4 5.0 4.9 3.8 3.6 3.4 3.2 2.6 2.3 2.2 1.9 1.8 1.6 1.1 0.7 0.6 0.4 0.3 0.1 0.0 0.0 0.0 500 748.0 1,000 1,500 2, 000 2,500 3, 000 3,500 4,000 Figure 8. Market Cap Ranking Source. Capital IQ Page 11 TEV/Revenue (LTM) averages 5.4x: The overall average TEV/Revenue (LTM) multiple for our group is 5.4x (versus 6.1x last week) (Figure 9). Two companies trade at more than 40x revenue – Bigstring Corp. (OTCBB:BSGC) at 49.6x, closely followed by Gree (TSE:3632) at 44.1x. The median is only 2.0x. Note that we exclude multiples greater than 50x. Twentyseven companies have multiples under 1.5x. T E V/L T M R evenue (x) 60. 0 49.6 44.1 50. 0 40. 0 30. 0 23.6 21.321.7 19.1 15.4 15.6 12.112.5 8.3 8.6 8.8 6.8 7.8 7.8 20. 0 10.erage, 5. 4 Av 0 0. 0 5.1 3.5 3.6 4.1 4.2 4.4 4.6 4.6 2.6 2.6 2.7 3.1 3.2 3.2 3.4 1.1 1.1 1.3 1.3 1.5 1.5 1.5 1.6 1.7 1.8 2.0 2.0 2.2 2.2 2.3 0.1 0.2 0.2 0.2 0.2 0.3 0.4 0.5 0.5 0.6 0.6 0.6 0.7 0.8 0.9 1.0 1.1 1.1 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 (19), trading at an average multiple of 11.1x (versus. 11.9x last week). On a geographic basis, the United States has the most companies (39), trading at an average of 5.5x revenue (versus 4.8x last week) (Figure 11). Ten of the companies are Canadian (average 4.6x revenue). (x) (x) OTCNO TSXV OTCPK Germany Hong Kong United Japan United China India 1 AQ Intera ctive, Inc . U nis erve C ommunications C orp. S NAP Intera ctive, Inc. T he P a rent C ompany N orthgate T echnologies L imited C LIC K E R Inc. P erfect World C o., Ltd. T ree.C om, Inc. DXN Holdings B hd IAC /InterAc tiveC orp. G a meO n C o Ltd. J umbuck E nterta inment P ty L td. O penwave S y s tems Inc . DADA S pA S pa rk N etwork s , Inc . C DC C orp. S N M G loba l Holdings G igaMedia Ltd. H anbitS oft, Inc . K AB Dis tribution Inc . United O nline Inc . C y berplex Inc . S hutterfly , Inc . Modern T imes G roup Mtg AB V alueC lic k Inc . Ac toz S oft C o. , Ltd. S K C ommunica tions C o., Ltd. is eemedia Inc . G a mania Digital E ntertainment C o., Ltd. Y edangO nline C orp. G ungH o O nline E ntertainment, Inc. My riad G roup AG P N I Digital Media Inc. O pen T ex t C orp. B ey ond C ommerc e, Inc. N E O WIZ G ames C orporation Y nk K orea Inc . XIN G AG E olith C o. Ltd. NetDra gon WebS oft, Inc . MO K O .mobi L imited C ornerWorld C orporation S ohu.com Inc . NeuLion Inc orporated Wiz z ard S oftware C orporation S ocial Media V enures , Inc . T otal S port O nline AS Acceleriz e New Media , Inc . F luid Mus ic C a nada , Inc. G eoS entric O y j Mix i, Inc . K ings oft C o. Ltd. C ha ngy ou.com L imited DigitalP os t Intera ctive, Inc. Lingo Media C orporation F rogs ter Intera ctiv e P ic tures AG UO MO Media, Inc As s ociated Media Holdings Inc . C hines e G amer Interna tional Dolphin Digital Media, Inc. T encent Holdings Ltd. B right T hings plc B igs tring C orp. G ree, Inc . Average TEV/LTM Revenue - By Exchange 25.0 23.6 20.0 15.0 10.0 5.0 OTCBB GTSM 0.0 TSE AIM SEHK HLSE 11.6 11.3 11.1 10.6 7.9 20.0 15.0 Average TEV/LTM Revenue - By Country 25.0 23.6 10.0 10.0 7.9 7.8 7.4 6.7 5.5 4.6 7.8 4.6 4.13.6 3.4 2.7 2.2 2.2 2.1 OSE AMEX TSX SWX 2.1 2.0 1.5 NasdaqGS OM 5.0 4.6 2.2 2.1 2.1 1.5 Canada 1.0 0.8 Italy 0.5 0.2 0.0 Malaysia Russia 1 0.8 0.5 CM KLSE NasdaqGM Finland KOSE ASX Taiwan South 0.5 0.2 0.0 RTS BSE 0.0 Switzerland Australia 2 Norway Sweden 1 XTRA # Companies 1 5 19 3 2 2 1 1 4 11 4 2 1 1 6 2 14 1 1 1 5 1 1 # Companies 1 6 2 1 3 10 39 1 10 1 8 1 1 1 Figures 10 & 11. TEV/Revenue Ranking (Exchange, Country) Source. Capital IQ TEV/EBITDA (LTM) averages 10.7x: The average multiple for the 34 companies with positive EBITDA (and multiples under 100x) is 10.7x LTM EBITDA (vs. 9.3x last week), led by Chinese Gamer International (3083-GTSM) 44.9x multiple (Figure 12). Thirteen of the companies have EBITDA multiples under 7x. The median multiple is 9.5x (vs. 8.8x last week). Page 12 T E V/L T M E B IT DA (x) 50. 0 44. 9 45. 0 40. 0 35. 0 30. 0 25. 0 19. 7 20. 0 15. 0 10. 0 5. 0 0. 1 0. 0 S handa Interactive E ntertainment L td. Ngi G roup Inc . 0. 1 0. 3 O AO R B C Information S y s tems 0. 7 S NAP Interac tive, Inc . 0. 8 P erfec t World C o. , L td. 1. 2 AQ Interac tive, Inc . 1. 6 J umbuck E ntertainment P ty Ltd. 2. 5 G ameO n C o L td. 3. 7 4. 2 A verage, 10. 7 5.6 5.8 7.6 8.5 8.7 12. 2 12. 7 13. 0 11. 0 12. 0 9. 6 10. 1 10. 2 10. 2 14. 2 20. 7 22. 0 26. 7 34. 1 9.4 9.4 9. 6 NE O WIZ G ames C orporation G ungH o O nline E ntertainment, Inc . G amania Digital E ntertainment C o. , Ltd. S K C ommunic ations C o. , L td. Modern T imes G roup Mtg AB C hines e G amer International 0.0 Switzerland 1 Russia 1 C hangy ou. c om L imited DXN Holdings B hd U nited O nline Inc . O pen T ex t C orp. V alueC lic k Inc . C DC C orp. 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 (19), trading at an average multiple of 0.7x (vs. 1.9x last week). On a geographic basis, the United States has the most companies (39), trading at an average of 8.4x EBITDA (Figure 14). Ten of the companies are Canadian (average 10.8x EBITDA). Average TEV/LTM EBITDA - By Exchange 30.0 24.7 25.0 20.0 (x) 15.0 10.0 5.0 GTSM 0.0 SEHK NasdaqGS KOSE OSE TSE OM XTRA CM TSX 23.1 13.4 12.0 11.1 10.2 9.6 9.3 Average TEV/LTM EBITDA - By Country 25.0 23.1 20.0 15.0 (x) 14.1 13.4 13.0 10.0 10.8 10.2 9.6 8.4 7.6 5.6 3.7 1.6 Germany Hong Kong Canada United States Japan Malaysia China South Korea Italy Australia Taiwan Sweden 0.3 6.4 5.6 4.2 3.7 1.6 0.7 0.3 OTCBB AMEX RTS KLSE ASX 0.0 0.0 SWX BSE 5.0 0.0 # Companies 3 2 6 1 4 2 1 14 5 1 2 1 2 19 1 1 1 # Companies 3 10 8 1 10 2 1 39 6 1 1 2 Figures 13 & 14. TEV/EBITDA Ranking (Exchange, Country) Source. Capital IQ T encent Holdings L td. S park Network s , Inc. C yberplex Inc. IAC /InterAc tiveC orp. Y edangO nline C orp. K AB Dis tribution Inc. XING AG S hutterfly , Inc. Actoz S oft C o. , L td. K ings oft C o. L td. DADA S pA Page 13 P/E (LTM) averages 10.0x: The average multiple for the 30 companies with positive earnings (and multiples under 100x) is 10.0x LTM EPS (versus 11.0x last week), led Tencent Holdings Ltd (SEHK-700) 57.3x multiple (Figure 15). Ten of the companies have P/E multiples under 10x. The median is just 13.7x. P /E L T M (x) 70.0 60.0 57.3 54.7 50.0 40.0 30.0 21.0 20.0 A verage, 10.0 10.0 0.0 0.0 G ravity C o., Ltd 2.0 G iant Interactive G roup, Inc. 2.4 T he9 Limited 2.8 S handa Interactive E ntertainment Ltd. 2.9 P erfect World C o., Ltd. 3.1 Neteas e.com Inc. 3.3 S NAP Interactive, Inc. 4.6 5.6 11.3 12.6 12.7 9.6 10.8 10.8 14.4 15.1 15.1 27.1 29.7 29.9 30.6 37.5 44.0 23.2 24.1 24.5 J umbuck E ntertainment P ty Ltd. G amania Digital E ntertainment C o., Ltd. NE O W IZ G ames C orporation Modern T imes G roup Mtg AB C hines e G amer International DXN H oldings B hd C hangy ou.com Limited 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 (19), trading at an average multiple of 20.4x. On a geographic basis, the United States has the most companies (39), trading at an average of 19.8x earnings (Figure 17). Ten of the companies are Canadian (average 20.1x EPS). Average P/E - By Country 33.6 Average P/E - By Exchange 40.0 36.8 35.0 30.0 25.0 (x) 20.0 15.0 10.0 5.0 OTCBB GTSM TSE NasdaqGS SEHK KOSE 0.0 CM OM XTRA AMEX TSX ASX 33.6 32.3 24.1 (x) 40.0 35.0 30.0 25.0 28.1 24.1 22.6 20.0 15.0 10.0 21.0 21.0 20.4 15.1 11.4 11.3 9.6 5.6 20.1 19.8 16.9 13.7 11.3 5.6 4.6 0.0 Malaysia 1 Switzerland 1 4.6 KLSE 5.0 2.0 NasdaqGM 0.0 NYSE 0.0 Germany Canada Japan United States Taiwan South Korea China Italy Australia Sweden # Companies 2 5 3 1 6 2 19 2 14 1 4 2 1 1 5 # Companies 6 3 1 2 10 39 8 10 1 2 Figures 16 & 17. P/E Ranking (Exchange, Country) Source. Capital IQ T encent H oldings Ltd. 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. Actoz S oft C o., Ltd. Worlds .com Inc. XING AG DADA S pA Mix i, Inc. Page 14 UPCOMING EVENTS E arnings Calendar C ompany I AC /I nterAc tiveC orp. (Na s da qG S :I AC I) S hutterfly , Inc . (N a sda qG S : S F L Y ) T heS treet. com, I nc. (Na s da qG M: TS C M) Openwa ve S ys tems Inc . (Na s da qG S : O P W V ) T ree. C om, Inc . (N a sda qG M :T R E E ) L ook S ma rt, L td. (N asda qG M :L O O K ) V a lueClic k Inc . (N a sda qG S : V C L K ) P NI D igita l Media I nc. (T S X V :P N ) Open T ext C orp. (Na s da qG S : O TE X ) Figure 18. Earnings Calendar Source. Company reports D ate & T ime W ednes da y, J uly 29, 2009 11:00 AM (E D T) W ednes da y, J uly 29, 2009 5:00 P M (E D T) W ednes da y, J uly 29, 2009 4:30 P M (E D T) T hursda y , J ul y 30, 2009 2: 00 P M (P DT ) T hursda y , J ul y 30, 2009 11: 00 A M (E DT ) M onda y, Augus t 03, 2009 5:00 P M (E D T) T uesda y , Augus t 04, 2009 4:30 P M (E DT ) W ednes da y, Augus t 12, 2009 4: 30 P M (E D T) T hursda y , Augus t 20, 2009 5:00 P M (E DT ) Qu arter Q 2 2009 Q 2 2009 Q 2 2009 Q 4 2009 Q 2 2009 Q 2 2009 Q 2 2009 Q 3 2009 Q 4 2009 C onf C a ll D etails NA 913-312-0641 NA 877-941-8416 877-723-9523 877-941-9205 818-575-4677 888-300-8196 416-644-3415 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 LIC K E R Inc. 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 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. K A B Dis tribution 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 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 euLion Incorporate d 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 N I D igital Media 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 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 oozyF ly, Inc. W ynds torm C orporation XIN G AG Y e dangOnline Corp. Y nk K orea 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 US D C AD E UR MY R US D US D US D US D KR W 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 HKD C AD US D US D US D JPY SE K AU D C HF KR W HKD US D C AD 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 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 US D E UR KR W KR W 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 C L KZ 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 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:K AB 3 888 T S XV :LM L VW D L OOK M AG Y 2 121 MT G B MKB MYR N A 095 660 7 77 NT E S T S X:NL N 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 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 ZY F W YND O 1B C A 052 770 A 023 770 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 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 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 S E HK T S XV OT C P K N as da qG M OT C B B TSE OM AS X SWX KO SE S E HK N as da qG S TSX 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 OT C B B 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 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 OT C P K XT R A KO SE KO SE U S D Ma rket C ap ($m) 1 6.1 18 2.5 3 3.9 0 .6 1 .9 2 .3 1 3.7 6 .5 1 9.5 38 7.3 2,0 99. 4 0 .3 1,1 38. 4 0 .7 3 .2 10 2.9 14 4.7 2 6.2 0 .0 4 .9 3 7.9 1 5.5 4 5.8 3 .6 4 4.2 4 2.8 27 8.6 10 7.9 5 1.1 1,8 38. 4 27 2.6 4 0.6 1,6 10. 2 26 1.7 7 9.1 2,7 24. 0 1 0.5 3 .8 1 4.0 8 1.5 1,0 89. 9 1 2.7 1 .1 2 1.0 3 .4 1,1 04. 4 2,1 93. 9 5 .4 8 1.5 55 0.7 42 1.5 5,2 90. 0 8 9.7 3 9.0 4 1.8 2 7.8 1,9 59. 2 24 5.7 1,7 21. 3 4 6.8 1 2.7 15 9.5 3,4 98. 0 37 7.8 32 1.2 2 .2 0 .0 0 .0 3 3.4 2,2 60. 3 4 9.4 6 .8 23, 894 .9 0 .4 21 3.0 6 3.7 0 .1 11 6.2 1 .6 74 8.0 9 .4 1,0 17. 5 5 .0 4 2.4 2 3.4 5 .8 2 .6 1 .8 22 5.0 10 1.8 2 4.3 C urrent Pric e 0.5 8 26 ,30 0 59 ,50 0 0.0 1 0.0 4 0.0 8 0.3 1 0.0 2 0.2 3 3.6 5 3 8.1 7 0.0 2 44 5.0 0 0.0 1 0.0 5 1.7 2 6.2 8 0.4 0 0.0 0 0.0 7 1.4 0 0.3 0 78 5.0 0 0.0 8 0.9 1 1 2.8 0 6 0.3 0 106 ,40 0 0.0 4 8.1 4 5.0 0 1.4 6 6 ,86 0 217 ,80 0 4 ,48 5 1 8.0 5 0.1 5 0.0 8 0.3 5 1 8 1.1 0 0.0 4 1.2 3 0.0 1 68 5,00 0.0 0 24 7.5 0 0.0 8 4.1 0 3 2,50 0.0 0 6.1 8 4 1.1 9 0.8 5 0.7 0 3 2,20 0.0 0 3 8.3 5 3 7.2 3 2.9 5 3 5.3 9 1.4 8 1.0 0 1.1 5 5 2.3 9 1 5.0 1 9,52 0.0 0 0 0.0 0 0.3 0 0.7 7 5 9.0 7 2 0 10 3 0.0 2 8.3 5 2.0 8 0.0 3 1 0.7 6 0.0 7 8.9 5 0.1 1 1 1.7 0 0.0 1 3.5 8 0.4 9 0.1 1 0.1 5 0.1 0 3 0.0 0 8 ,06 0 5 ,66 0 1 Wk 1.9 % -3.5 % 8.2 % -30. 0% -16. 7% -30. 4% -12. 6% 33.3 % -22. 8% 65.9 % -15. 7% -25. 0% -11. 2% -25. 0% 0.0 % 11.0 % 4.9 % -5.9 % -90. 0% 88.6 % -30. 0% -9.1 % -0.6 % -60. 0% 2.2 % 4.9 % -10. 0% 0.4 % 0.0 % 5.0 % -2.2 % -8.2 % 1.2 % 3.7 % -3.5 % 4.5 % 36.4 % -11. 1% -7.9 % 0.0 % 12.4 % 0.0 % -17. 8% 9.8 % -16. 7% -0.1 % 4.0 % 25.0 % -9.3 % 1.9 % 2.7 % 0.5 % -6.6 % 55.6 % -1.4 % 6.5 % 1.1 % 0.7 % 1.1 % -1.3 % 5.3 % 53.3 % -13. 0% 6.4 % -0.3 % -55. 6% 1 50. 0% -6.3 % -3.7 % -9.0 % -0.8 % -6.7 % -3.7 % -46. 4% -5.1 % 4.5 % 0.0 % 7.8 % -30. 0% 10.0 % 0.0 % 3.0 % 0.0 % 1.1 % 2.1 % -21. 4% 0.0 % 0.0 % 5.3 % 1.5 % -4.4 % 1 50. 0% -90. 0% -0. 5% 0.0 % 1 Mth 4 5.3 % 1 2.9 % -19. 6% -30. 0% 9.4% 0.0% -57. 6% 3 7.9 % -22. 8% 1 43.3 % -16. 1% 6 50.0 % 5.7% 2 33.3 % -16. 7% 0.0% 1.2% 3.9% -90. 0% 1 00.0 % -31. 7% -43. 4% -1.9 % -46. 7% 1 5.2 % 3 4.7 % -2.0 % -0.8 % 0.0% -7.5 % -13. 9% 3 3.9 % -2.1 % -4.3 % -0.1 % 1 3.3 % -25. 0% -20. 0% -10. 3% 0.0% 4 2.0 % 1 0.0 % -38. 3% 7.9% -37. 5% 2 2.3 % 1 7.3 % 0.0% -17. 8% -3.6 % 2 1.9 % 9.3% 1 3.3 % 1 4.8 % -13. 4% -4.2 % 2.4% 2 6.1 % 8.6% NM 4 2.9 % 1 5.0 % -13. 6% -0.4 % -4.7 % -69. 2% -42. 9% 29 00. 0% 1 1.6 % -12. 8% -4.0 % -39. 1% 1 0.3 % -40. 0% -21. 7% -3.7 % 0.0% 1 1.5 % 4 0.0 % 3 6.6 % -24. 1% -0.2 % -33. 3% 3.5% -3.9 % -8.3 % NM 1 50.0 % -2.6 % -3.7 % -18. 6% 29 00. 0% -90. 0% 43.8% -0.1 % 3 Mth 18 .6% 93 .4% 28 .0% 83 3.3% 15 5.5% -2 7.3% -7 8.4% 14 .3% -5 4.9% 21 4.7% 36 .3% 65 0.0% 10 7.9% 14 3.2% -5 0.0% 42 .1% 9 .3% 33 .3% -9 0.0% 28 8.2% -4 0.4% -4 0.1% -6 .5% -4 6.7% 16 0.0% 36 .2% 76 .8% 9 .9% 0 .0% -4 .5% -2 3.2% 49 .0% 19 .9% 56 .7% 10 .1% 13 .1% -4 2.3% -2 0.0% -2 4.7% 6 .8% 12 7.5% 22 .2% -6 6.4% -8 .2% -5 0.0% 46 .1% 17 .3% -1 1.8% -1 0.5% 21 .7% 37 .3% 38 .9% 63 .5% 24 .8% -1 5.3% -7 .5% 11 .5% 15 4.3% 10 9.7% -1 .3% 20 .5% 76 .9% 13 .6% 50 .9% 5 .8% -6 9.2% -2 0.0% 290 0.0 % 75 .0% 19 .7% 4 .8% -3 3.3% 57 .5% 20 .0% -9 .8% -1 1.9% 0 .0% 87 .5% 75 .0% 83 .8% 37 .5% 20 .2% 10 0.0% 46 .1% -7 .5% -3 5.3% 0 .0% 11 .1% 3 .8% -5 .1% 22 .0% 290 0.0 % -9 0.0% 73.1% 15 .8% 6 Mth 66 .0% 14 3.5% 94 .4% 18 0.0% 10 5.9% -6 0.0 % -6 7.9 % 58 .7% -7 7.2 % 35 0.6% NM 65 0.0% 39 2.8% -7 0.0 % -8 7.8 % 36 4.9% -6.8% 12 .7% -9 8.0 % 23 0.0% -5 3.3 % -5 3.8 % 53 .9% -8 4.6 % 19 3.5% 16 3.9% 17 9.8% -1 8.2 % 0 .0% 31 .7% -2 5.1 % 89 .6% 18 .1% 12 1.1% 44 .7% 19 .5% 61 4.3% -1 1.1 % -2 7.1 % 50 .0% 19 2.5% 12 .2% -5 3.8 % -1 0.2 % -7 4.1 % 40 .1% 69 .2% 50 .0% -2 4.8 % 18 1.4% 13 3.2% 12 0.4% 14 6.4% -6.7% -2 4.7 % -6.3% 13 .2% 27 3.4% 13 7.2% -1 2.4 % -4 1.2 % 27 4.0% 77 .6% 12 6.7% 29 .7% -8 0.0 % 40 0.0% -7 7.4 % 40 .0% 41 .0% -2.8% 40 .0% 13 1.9% -5 0.0 % -4 7.8 % -2 9.3 % -2 5.0 % 13 3.9% -1 2.5 % 40 .7% 37 .5% 77 .5% -2 0.0 % 13 8.7% -3 3.0 % -4 5.0 % 0 .0% -2 0.0 % -3.2% 7 .8% 43 .7% 65 0.0% -9 8.0 % 64.7% 29 .7% 1 Yr -10 .6% 2 28. 8% -59 .3% -30 .0% -62 .8% -68 .0% -90 .7% 25.0 % -84 .7% 34.2 % NM -50 .0% 4 50. 1% -98 .9% -87 .5% 2 44. 0% -42 .2% -7. 0% -98 .0% -17 .5% -60 .0% NM -8. 7% NM -46 .2% 1 53. 5% 1 36. 5% -31 .8% -33 .3% -11 .2% -58 .9% 36.4 % NM -9. 3% 6.8 % -47 .7% -34 .8% -68 .0% -37 .5% -16 .0% 1 30. 9% -38 .5% -79 .4% -59 .0% -62 .5% -2. 0% -27 .0% 82.9 % -59 .0% 1 54. 9% -33 .5% 78.2 % NM -12 .5% -60 .1% -87 .0% 20.8 % 1 15. 3% 33.5 % -56 .0% -58 .7% -84 .9% 91.6 % 74.7 % -33 .2% -63 .6% -99 .7% 20.0 % -69 .2% -25 .4% -41 .6% NM 43.0 % -99 .3% -63 .3% -67 .7% -40 .0% NM -65 .0% -18 .8% -72 .5% 3.7 % -85 .3% 33.1 % -71 .6% -68 .6% NM -83 .3% -0. 6% -15 .4% -42 .8% 4 50. 1% -99 .7% -10.7% -34 .2% 52 We ek -12. 0% -26. 9% -62. 3% -72. 0% -65. 0% -76. 5% -90. 8% -20. 0% -92. 1% 14.4 % -21. 1% -57. 1% -14. 3% -98. 9% -93. 7% -13. 6% -49. 6% -10. 1% -98. 0% -34. 0% -77. 0% -73. 5% -32. 3% -92. 1% -49. 4% 0.0 % -12. 4% -34. 9% -42. 9% -24. 5% -62. 7% -26. 6% -11. 0% -22. 2% -32. 5% -64. 3% -50. 0% -68. 0% -43. 5% -30. 8% 0.0 % -42. 7% -85. 2% -63. 5% -75. 0% -25. 6% -36. 6% -25. 0% -59. 0% -22. 6% -36. 9% -8.1 % -22. 0% -51. 7% -74. 7% -87. 8% -4.8 % -3.3 % -2.0 % -59. 1% -71. 1% -85. 4% -19. 4% -6.7 % -37. 4% -81. 5% -99. 8% -94. 0% -71. 5% -32. 9% -46. 2% -76. 7% -4.0 % -99. 3% -67. 5% -71. 7% -40. 0% -17. 7% -72. 0% -26. 9% -89. 6% -16. 4% -85. 9% -23. 5% -72. 2% -71. 1% -96. 3% -83. 3% -16. 6% -35. 0% -54. 4% 14.4 % -99. 8% -48.2% -44. 9% 665.4 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 LIC K E R Inc. 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 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. K A B D is tribution 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 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 euLion Incorporate d 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 N I D igital Media 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 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 oozyF ly, Inc. W ynds torm C orporation XIN G AG Y e dangOnline Corp. Y nk K orea 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 D irect Marketing 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 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 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 S ocia l Ne tworking Mobile G aming G aming G aming V ide o 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 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 S ocia l Ne tworking C ontent S ocia l Ne tworking G aming G aming 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 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 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 hina C anada U nite d S tates U nite d S tates U nite d S tates J a pan S we den A us tralia S witz erland S outh K ore a C hina C hina C anada 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 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 U nite d S tates G ermany S outh K ore a S outh K ore a 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 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 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 S E HK T S XV OT C P K N as da qG M OT C B B TSE OM AS X SWX K OS E S E HK N as da qG S TSX 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 OT C B B 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 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 OT C P K XT R A K OS E K OS E 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 C LK Z 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 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 TS X:K AB 3 888 TS XV :LM LV W D L OOK MAG Y 2 121 MT G B MK B MY R N A 095 660 777 NT E S T S X:N LN 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 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 ZY F W YND O 1B C A 052 770 A 023 770 US D Market Cap ($m) 16. 1 1 82. 5 33. 9 0. 6 1. 9 2. 3 13. 7 6. 5 19. 5 3 87. 3 2,0 99. 4 0. 3 1,1 38. 4 0. 7 3. 2 1 02. 9 1 44. 7 26. 2 0. 0 4. 9 37. 9 15. 5 45. 8 3. 6 44. 2 42. 8 2 78. 6 1 07. 9 51. 1 1,8 38. 4 2 72. 6 40. 6 1,6 10. 2 2 61. 7 79. 1 2,7 24. 0 10. 5 3. 8 14. 0 81. 5 1,0 89. 9 12. 7 1. 1 21. 0 3. 4 1,1 04. 4 2,1 93. 9 5. 4 81. 5 5 50. 7 4 21. 5 5,2 90. 0 89. 7 39. 0 41. 8 27. 8 1,9 59. 2 2 45. 7 1,7 21. 3 46. 8 12. 7 1 59. 5 3,4 98. 0 3 77. 8 3 21. 2 2. 2 0. 0 0. 0 33. 4 2,2 60. 3 49. 4 6. 8 23,8 94. 9 0. 4 2 13. 0 63. 7 0. 1 1 16. 2 1. 6 7 48. 0 9. 4 1,0 17. 5 5. 0 42. 4 23. 4 5. 8 2. 6 1. 8 2 25. 0 1 01. 8 24. 3 23,8 94. 9 0. 0 665. 4 42. 6 TE V/LT M R evenue 5.1 x 1.6 x 0.1 x 15.6 x 44.1 x 2.6 x 23.6 x 1.0 x 8.6 x 0.0 x 19.1 x 0.3 x 3.6 x 1.3 x 0.8 x 0.5 x 8.8 x 21.3 x 3.2 x 6.8 x 12.5 x 2.0 x 0.6 x 7.8 x 1.1 x 49.6 x 2.2 x 1.1 x 0.6 x 1.8 x 0.6 x 1.1 x 8.3 x 12.1 x 0.0 x 7.8 x 1.5 x 3.5 x 2.2 x 2.7 x 3.4 x 4.2 x 0.0 x 0.2 x 2.6 x 0.7 x 0.4 x 2.3 x 0.0 x 0.0 x 1.5 x 1.7 x 0.2 x 1.1 x 4.6 x 4.1 x 0.9 x 21.7 x 0.2 x 4.6 x 0.5 x 0.2 x 1.3 x 15.4 x 1.5 x 4.4 x 3.2 x 2.0 x 3.1 x 49.6 x 0.0 x 5.4x 2.0 x TE V/ N TM R evenue 1.1x 6.5x 1.0x 4.5x 1.0x 0.6x 1.1x 1.4x 4.3x 2.4x 0.8x 2.1x 1.6x 0.2x 1.4x 3.6x 0.2x 0.4x 1.0x 1.7x 6.5x 0.2x 1.8x 1.3x TE V/LT M E BITDA 7.6 x 1.2 x 13.0 x 14.2 x 34.1 x 12.7 x 5.6 x 3.7 x 12.2 x 2.5 x 12.0 x 19.7 x 1.6 x 9.6 x 20.7 x 22.0 x 9.6 x 10.1 x 8.5 x 0.1 x 10.2 x 0.8 x 0.3 x 0.1 x 11.0 x 26.7 x 0.7 x 9.4 x 4.2 x 44.9 x 5.8 x 8.7 x 10.2 x 9.4 x 44.9 x 0.1 x 10.7x 9.5 x TE V/NTM E BITDA 1 6.0 x 1 1.2 x 8.3x 5.1x 5.4x 5.9x 1 0.8 x 7.9x 7.8x 4.0x 4.6x 0.4x 8.4x 8.2x 1 2.9 x 5.7x 4.3x 6.7x 1 6.0 x 0.4x 7.4x 7.2x P /LT M E P S 27 .1x 14 .4x 44 .0x 9. 6x 24 .1x 4. 6x 29 .7x 12 .6x 2. 0x 10 .8x 0. 0x 23 .2x 5. 6x 24 .5x 54 .7x 11 .3x 29 .9x 15 .1x 3. 1x 30 .6x 2. 9x 2. 8x 3. 3x 12 .7x 15 .1x 57 .3x 2. 4x 37 .5x 21 .0x 10 .8x 57 .3x 0. 0x 18.1x 13 .5x P /NT M E P S 3 8.4 x 1 3.8 x 1 1.2 x 1 3.5 x 1 0.1 x 3 7.1 x 1 2.3 x 1 8.1 x 1 3.7 x 4 6.8 x 1 3.5 x 1 4.6 x 1 6.3 x 1 1.5 x 1 1.9 x 1 8.6 x 4 6.8 x 1 0.1 x 18.8x 1 3.7 x P /TangBV 3 .1x 0 .5x 0 .3x 1 3.0x 1 6.5x 9 .5x 0 .6x 4 .3x 4 .2x 6 .3x 3 .6x 1 .4x 8 .6x 0 .4x 2 .3x 0 .0x 1 9.9x 3 7.0x 2 .4x 1 .2x 3 .1x 1 .4x 5 .9x 1 2.8x 0 .5x 0 .8x 8 .1x 3 .9x 3 .6x 1 5.1x 2 .3x 0 .9x 5 .0x 0 .9x 3 .5x 1 .1x 1 8.6x 1 .1x 2 .2x 1 .3x 4 3.4x 6 .1x 1 7.8x 2 3.9x 0 .1x 0 .8x 1 .5x 8 .3x 1 7.1x 0 .0x 7 .0x 3 .7x 1 .1x 4 3.4x 0 .0x 6.9x 3 .6x 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 39 10 10 8 6 3 2 2 1 1 1 1 1 1 1 1 1 1 90 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 H ong K ong G erma ny R uss ia 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 42, 326.7 5, 665.5 3, 160.0 2, 318.1 2, 193.9 1, 689.7 1, 364.2 387.3 267.8 159.5 144.7 81.5 51.1 27.8 26.2 19.4 6.5 0.1 59,889.9 Avg US D Mar ket C ap ($m) China S weden Ta iwa n Japan Hong K ong Ca na da S outh K orea R us sia United S tates Ita ly G erma ny S witzerland Finland India Malay sia Australia United K ingdom Norway G rand Total 4,232. 7 2,193. 9 563. 2 526. 7 387. 3 231. 8 170. 5 159. 5 145. 3 144. 7 133. 9 81. 5 51. 1 27. 8 26. 2 9. 7 6. 5 0. 1 665.4 U S D LT M T otal R ev ($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, 841. 3 3, 791. 6 1, 846. 6 999. 4 672. 4 499. 9 389. 9 365. 8 239. 0 154. 2 116. 3 78. 6 57. 1 40. 0 15. 9 6. 0 2. 2 0. 3 13,116.6 U S D LT M Total E B IT DA ($m) C hina S weden U nited S ta tes C a na da J apan S outh K orea T a iwan I taly H ong K ong R uss ia M alays ia G erma ny Aus tralia S witz erland N orway U nited K ingdom F inland I ndia G r and T otal 1,782. 0 283. 7 241. 2 196. 7 108. 8 91. 4 52. 4 35. 0 30. 8 20. 1 10. 9 10. 6 3. 0 0. 8 -1. 1 -1. 9 -15. 6 -27. 3 2,821.6 E B IT DA % C hina Aus tral ia T aiwa n G ermany J a pa n S weden I ta ly M a la ys ia R uss ia H ong K ong S outh K orea S witz erla nd C anada U nited S ta tes I ndia N orway U nited K ingdom F inla nd G rand T otal 48. 0% 37. 2% 36. 3% 31. 2% 21. 9% 15. 4% 14. 6% 13. 8% 13. 1% 7.9% 6.4% 1.9% -13.3% -14.8% -23.5% -50.6% #DI V /0! #DI V /0! 6.8% Figure 21. Comparison by Country Source. Capital IQ C omparable C ompany A nalys is > W eb 2.0 Su mmary b y Ex c hange C om pany Nam e OT C B B N as da qG S OT C P K K OS E TSE N as da qG M TSX T S XV S E HK A ME X ASX XT R A GT SM S WX H LS E CM B SE NYS E OS E A IM OM R TS K LS E O T C NO G rand To tal 19 14 11 6 5 5 4 4 3 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 90 U S D Market Cap ($m) SE HK N asdaqG S TSE OM NYS E GTS M K OS E TSX N asdaqG M XT R A OS E OT CB B R TS CM SWX AM E X OT CP K T S XV H LS E BS E KLS E AS X AI M OT CN O G rand T otal 25, 406.4 22, 814.1 2, 898.3 2, 193.9 1, 838.4 1, 417.1 1, 281.2 318.3 283.9 267.8 261.7 188.1 159.5 144.7 81.5 72.8 66.3 64.9 51.1 27.8 26.2 19.4 6.5 0.1 59,889.9 Avg US D Mar ket C ap ($m) S E HK OM NY S E Na s daqG S G TS M TS E OS E K OS E RT S CM XT R A SWX TS X Na s daqG M HL S E AME X BS E KLS E TS X V O TC B B AS X AIM O TC P K O TC NO G rand Total 8,468. 8 2,193. 9 1,838. 4 1,629. 6 708. 5 579. 7 261. 7 213. 5 159. 5 144. 7 133. 9 81. 5 79. 6 56. 8 51. 1 36. 4 27. 8 26. 2 16. 2 9. 9 9. 7 6. 5 6. 0 0. 1 665.4 U S D LT M T otal R ev ($m) OM N a sda qG S S E HK CM NYS E R TS BSE OS E K OS E GT S M 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 CN O OT CB B AI M G rand T otal 1, 846. 6 484. 3 473. 4 239. 0 219. 0 154. 2 116. 3 108. 1 100. 5 91. 1 82. 5 78. 6 78. 4 43. 6 40. 0 29. 9 28. 6 16. 6 11. 7 8. 0 6. 0 2. 2 1. 7 0. 3 154.3 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 K LS E XTR A AM E X AS X SWX NYS E OT CN O TSX AI M N a sdaqG M T S XV HLS E BSE OT CP K OT CB B G r and T otal 1,694. 2 669. 5 283. 7 89. 4 79. 3 52. 4 35. 0 20. 1 19. 4 10. 9 10. 6 6. 4 3. 0 0. 8 0. 0 -1. 1 -1. 8 -1. 9 -3. 0 -6. 2 -15. 6 -27. 3 -34. 0 -62. 2 2,821.6 E B IT DA % S EHK AS X GT SM XT R A N asdaqG S TSE OS E OM CM K LS E R TS K OS E N asdaqG M SWX T S XV TSX BSE O T CB B AM E X O T CP K O T CN O NYS E AI M H LS E G rand T otal 42. 7% 37. 2% 36. 3% 31. 2% 30. 2% 22. 7% 18. 0% 15. 4% 14. 6% 13. 8% 13. 1% 4.4% 3.1% 1.9% 1.3% -14.3% -23.5% -32.0% -36.4% -41.3% -50.6% #DI V /0! #DI V /0! #DI V /0! 6.8% Figure 22. Comparison by Exchange Source. Capital IQ Page 18 Fin an c in g - L as t Th ree M on ths (U S $ m) Mo nth May-09 Co mpan y N ame Facebook One Net Entertainment Cyberplex Peer39 OpenX Intent Media Imeem EveryZing ConnectEdu BlogHer Inc. WonderHill Gist Fuhu Inc. Azuki Systems I Love Rewards DocuSign TimeBridge OLX Mediale ts Resonate Networks VoxPop Mo'Minis Loop'd Network May-09 T otal J u n -09 S ug ar Inc . Tu mri Boku Wimba G rab N etwo rks AdChina Goojet SAS AdMeld Inc. beeTV Nokeena Bubble Motion Sense N etworks Zoosk Gather MojoPages Taomee Animoto GameGround RingRevenue Crowdcast YuMe eRepublik Newser LLC ClickFuel Inigral AdEx Media GROU.PS my6 sense OneTXT Yapta I Love Rewards Cliqset Glubble Picaboo TodaCell AdWhirl Liq uidPlanner MashLogic J u n -09 T otal USA USA USA USA USA China France USA USA USA USA USA USA USA USA China USA Israel USA USA USA Spain USA USA USA USA USA Israel USA USA Canada USA Netherlands USA Israel USA USA USA 1. 0 1. 0 0. 5 45.3 15.3 28.5 67. 8 34.0 5.3 1. 0 1. 0 1. 5 1.0 2. 1 2. 0 2. 0 2.0 1.8 2. 4 2. 3 3. 0 2. 9 2. 8 2. 5 2. 5 4. 1 3. 5 5. 0 4.4 5. 0 6. 0 6.0 6.0 5. 3 12. 0 10.0 8.5 8.0 8.0 6.5 13.0 12. 0 15. 0 C ou ntr y USA China Canada USA UK USA USA USA USA USA USA USA USA USA Canada USA USA USA USA USA USA Israel USA 0. 8 13.6 10. 0 22.9 32.3 26. 9 40.8 16. 0 205. 0 1. 5 4. 0 2. 0 1.5 5.0 5.0 6. 0 5.9 5. 0 7. 0 6. 8 6.3 8.2 7.0 8. 8 8.3 9. 0 An gel/S e ed Debt finan c in g 10. 0 P IP E 10. 0 12. 9 10. 5 10. 0 S eries A S eries B S eries C S eries D 200. 0 G rand T otal 200. 0 20.0 12.9 10.5 10.0 9. 0 8. 8 8. 3 8. 2 7. 0 7. 0 6. 8 6. 3 6. 0 5. 9 5. 0 5. 0 5. 0 4. 0 2. 0 1. 5 1. 5 0. 8 351.3 16.0 15.0 13.0 12.0 12.0 10.0 8. 5 8. 0 8. 0 6. 5 6. 0 6. 0 6. 0 5. 3 5. 0 5. 0 4. 4 4. 1 3. 5 3. 0 2. 9 2. 8 2. 5 2. 5 2. 4 2. 3 2. 1 2. 0 2. 0 2. 0 1. 8 1. 5 1. 0 1. 0 1. 0 1. 0 1. 0 0. 5 196.1 Page 19 Mo nth J ul-09 Co mpany N ame P andora Media Ko ntera L td. Ning QuickP lay Media Caus es Outs park Co nn ec tE du Ac quia, In c S BNation Metavers um OP E N S ports n etwork S tyleCas ter Nexage TweetD ec k P ro ton Media Alo qa Lat49 Tributes . c om Co Tweet Clikth ro ugh P eople Capital C ou ntry US A Is rael US A C anada US A US A US A US A US A German y US A US A US A UK US A German y C anada US A US A US A US A An gel/S eed D ebt finan cin g PIP E S eries A S eries B S eries C 35. 0 S eries D G rand T otal 35.0 15.5 15.5 15.0 12.0 10.0 8.3 8.2 8.0 8. 0 6.3 4. 0 4. 0 4. 0 3. 2 2. 5 1. 5 1. 5 1.2 1. 1 1. 0 0.5 46.2 105.0 10. 0 38. 2 10.1 70.9 22. 0 116.6 51. 5 126.3 27.0 237. 3 15.0 12.0 10.0 8. 3 8. 2 8. 0 8. 0 6. 3 4. 0 4. 0 4. 0 3. 2 2. 5 1. 5 1. 5 1. 2 1. 1 1. 0 0. 5 156. 7 704. 2 J ul-09 T otal G ran d To tal Figure 23. Financing, Last Three Months Source. Company reports Page 20 C ompany Des c riptio ns - C urrent Mo nth C apital Market A c tivity C ompany A c qu ia, Inc . HQ U nited S ta tes W ebs ite www.acquia.com Des criptio n Acqui a , Inc ., a n open source software compa ny, prov ides products , serv ices , a nd tec hnic a l s upport for the open sourc e Drupa l soc ia l publishi ng s ys tem. T he compa ny offers Ac quia D rupa l, a pa ck a ged dis tribution of the open sourc e D rupal soc ia l publi shing sy stem tha t is used by W eb developers to build c ommunity W ebsites, a s well as deliver v a rious W eb applic ations, s uc h as s ingle or multi-us er blogs, wikis , community network s , digital media porta ls , a nd ecommerce; Ac quia N etwork, whic h offers s ubs cription-ba sed a cces s to technica l support a nd remote network s ervic es for the dep loyment and operation of Drupa l W ebsites ; a nd Ac quia S ea rch, a tool to s ea rc h the content of a s ite. It a lso provides commercia l grade s upport for the open source Drupal social publishing sy s tem, inc luding modules , themes , and cus tom code. The compa ny was formerly k nown as Aquia , I nc. and cha nge d its na me to Acquia, I nc. in D ecember 2007. Acquia , Inc . wa s founded in 2007 and is bas ed in Andov er, Ma s sac hus etts. AdL IN K Internet Media AG , through its s ubsidia ries , provides digital marketing solutions in E urope a nd interna tionally . The c ompany specializ es in dis pla y , a ffiliate, permis s ion, direct, a nd doma in ma rketing. I ts D is pla y Mark eting segment provides online, direc t a nd dia loguebased, and permiss ion/email ma rketing solutions. This s egment’s portfolio c omprises 4, 000 Web s ites with advertis ing env ironment for regiona l, na tional, a nd internationa l c ampa igns. T he c ompa ny’s Affilia te Mark eting s egment opera tes as a brok er between a dvertis ers and W eb s ite publis hers. This s egment a lso offers profess iona l cons ulta tion, promotion options, a nd works hops. A dLIN K I nternet Media ’s Doma in Ma rk eting segment operates a trading platform for the doma in ma rket, a s wel l as a cts as a brok er between domain owners a nd a dvertisers . T he c ompa ny was formerl y known as AdLI NK I nternet M edia G mbH E urope and cha nged its na me to AdL I NK Internet M edia AG in 2000. AdLIN K I nternet Media wa s founded i n 1996 and is he a dquartered in M ontaba ur, G erma ny . AdLIN K Internet Media AG is a subs idiary of U nited I nternet AG . Aloqa G mbH prov ides a mobile s ervice tha t notifies interes ting pla ces , events , a nd F ac ebook friends in real time. I t s upports v arious pos itionfinding proc ess es, suc h as cell ID , G P S , W LAN , and G S M fingerprinting; a nd enables applica tions and s ervic es to tra ck us er location in rea l time for moving or s ta tiona ry objec ts . Th e c ompa ny s erves publishers , a dv ertis ers, mobile operators , and developers . Aloqa G mbH wa s founded in 2007 a nd is ba s ed in Munic h, G ermany with an a dditiona l loc ation in P a lo Alto, C a lifornia . C lik thro ugh’s interac tive media tec hnology mak es videos interac tive a nd cha nges videos into online points of s a le to a cc ess un ta pped revenue. C onnec tE du, Inc., a technology c ompa ny, prov ides W eb-ba s ed s olution s to na viga te e duca tion a nd employment tra nsitions. It offers C onnec t! , a W eb-ba s ed s olution tha t provides users with information a nd guida nce in curric ulum, co llege, a nd c areer pl a nning, a s well as online tools and resourc es to nav iga te their high sc hool, c ollege, a nd career life c ycles; a nd P rep Hea dQ uarters, a s et of I nternet-based tool s to enha nc e high school guidance, and make college a nd ca reer prepa ra ti on. The company s erves s tudents , parents, guida nce couns elors, a dmiss ion officers , tra ns fer a dvisors , enrollment ma nagers, and employers . I t ha s strategic partners hips with Na tional C ollegia te Athleti c Ass ocia tion; a al S olutions; C ouncil of N orth C entral Two Y ear C olle ges; M arcia B renner Ass ociates ; Ma ine S tate G E AR UP ; W eidenha mmer; S k y wa rd; C o mputer M a na gement Tec hnologies ; S chools O P E N , L.L . C .; S chool Information S ys tems , Inc . ; and S oftwa re Tec hnology, Inc . C onnectE du, Inc. was founded in 2002 a nd is ba s ed in B oston, M ass achus etts . C oT weet is a bus iness front-end for T witter, enabling companies to enga ge in proa ctive ma rk eting a nd respons e-oriented customer s ervice a ctivities . Hi-M edia S . A. opera tes as a n advertising ma na gement compa ny in France. I t ma rk ets advertising s pa ce to advertis ers on the Internet. T he company als o offers a ra nge of s ervices to digital media publishers , including direc t ma rketing serv ices , which compris e direct marketing me dia pla nning, email, ma il, S M S addres s es leasing, a nd implementing intera ctive TV ca mpa igns ; and micro-pa y ment tec hnical platform a nd s ervic es . In a ddition, it provides serv ices for prospecting a nd ca nv ass ing of advertisers . H i-Media S .A. wa s founded by C yril Zimmerman n in 1996. It was formerly k nown as H i-Media Multimedia a nd changed its na me to H i-Media S .A . in 2000. T he company is ba s ed in P a ris , F ra nce. Inv odo, I nc. offers sec ure client-controlled a nd two-wa y ex cha nges of corporate a nd us er generated v ideo c ommunic a tions between companies , employees , and c us tomers . It prov ides s yndic a tion, reporting and s tats , and cus tomer s erv ices ; a nd a cc ount ma na gement services , including video production and editing, video product pod c reation, UP C /S K U mapping a nd integra tion, a nd v ideo c ontent review. The c ompa ny a ls o offers video produc tion serv ices that c omprise producing, directing, film and video photogra phy , HD TV , crew pla c ement, production ma nagement, location sound, non-linear editing, a udio pos t a nd music produc ti on, a nd s trea ming med ia. It s erves ma nufa c turers a nd retailers . The company wa s founded in 2006 and is bas ed in Austin, T exas . K ontera T echnologies , I nc. provides in-text a dv ertis ing a nd information s olutions. I t offers i n-text pa y per c lick and W eb site advertising solutions . The c ompany prov ides C ontentL ink, an in-text a dvertis ing s olution tha t identifies contextual ly releva nt k eywords on a publis her's W eb pa ge, as well a s matches them to releva nt a ds a nd information. T he ContentL ink als o provides a ds , whi ch ena ble W eb publis hers to displa y rel eva nt c ommercial offers on their W eb pa ges , a s well as offers in-text a ds for W eb s ites; a nd va rious forma ts for ads on W eb s ites , forums , a nd blogs . I t s erves online a dvertisers , publis hers, and us ers. The company wa s founded in 2003 a nd is based in S a n F rancis c o, C alifornia with a dditiona l offi ces in New Y ork , N ew Y ork; a nd H erz liya, Is ra el. ID E L I X S oftware , Inc. opera tes a n online a dvertis ing network of intera ctive ma ps . Its network of online ma p properties prov ides local and bra nd a dv ertis ers an intera c tive medium for delivering geo-targ eted and contex tual dis pla y advertisements. T he company s erves a dv ertis ers, W eb s ite publis hers, a nd us ers. I DE LIX S oftwa re, I nc. wa s formerly k nown a s Adv anced Numeric al M ethods , Ltd. and cha nged its na me to ID E L I X S oftware , Inc. in 2001. The company was founded in 1996 a nd is headqua rtered in V ancouv er, C a nada. A dL ink Interne t Media A G G erma ny www.adlink.net A lo qa G erma ny www.aloqa.com C likthrough C onn ectE du U nited S ta tes U nited S ta tes www.clikthrough.com www.connectedu.net C oT weet U nited S ta tes www.cotweet.com H i-Media S .A. F rance wwww.hi-media.com Invodo, Inc . U nited S ta tes www.invodo.com K ontera I s ra el www.kontera.com L at49 (Idealix s o ftware) C a nada www.lat49.com Metavers um G erma ny www.metaversum.com Meta vers um G mbH devel ops and operates T winity, a 3D online platform. The Twinity a llows members to crea te a pers ona l a va ta r, ex plore virtua l c ities, mov e into a 3D home, c hat with friends, and work together in E urope and international ly. M etav ersum G mbH ha s a s tra tegic me dia pa rtnership with z itty ; a nd a stra tegic pa rtners hip with B igpoint. T he c ompany wa s founded in 2006 and is bas ed in B erlin, G ermany with a dditiona l offices in K iev a nd S ingapore. N ing, Inc . U nited S ta tes www.ning.com Ning, I nc. provides web hos ting s ervices . The compa ny ’s platform s upports online communities a nd offers I nternet network ing s olutions. Additi ona lly, it owns a nd opera tes online blogs and forums . The c ompany mark ets its produc t under the Ning brand na me. N ing, Inc. was founded in 2004 a nd is ba s ed in P alo A lto, C alifornia. N exage U nited S ta tes www.nexage.com NE X AG E , Inc . opera tes as a wireless a nd multi media software and s ervices company in the U nited S ta tes a nd interna tionally . It focuses on providing hos ted white la bel mobile v ideo entertai nment, a dvertis ement, and soc ia l network ing solutions for media companies , content providers , a nd carriers . The compa ny offers P honeCa s t-P ro, whic h prov ides for the a utoma tic c ontent ingestion, enc oding, ma na gement, publishi ng, and deliv ery of s treaming mobile video c ontent; P honeca st C lick -to-V ideo, a mobile advertisi ng s olution for a d agencies a nd a dvertisers to crea te mobile W eb pa ges and load videos for a mobile advertising campaign; a nd My C orner, a branded mobile v ideo s ervice with c ontent for opera tors . N E X AG E , Inc . wa s founded in 2005 a nd is ba s ed in F remont, Ca lifornia. Ou tS park, Inc. U nited S ta tes www.outspark.com O utS pa rk , I nc. , an enterta inment services compa ny, publishes a nd operates engaging onli ne multipl a yer ga mes . T he compa ny wa s founded in 2006 a nd is based in S a n F rancis c o, C alifornia with a subs idiary office in S eoul, K orea . Page 21 P andora Media U nited S ta tes www.pandora.com P andora M edia, I nc. , a n Internet ra dio compa ny, prov ides music discovery s ervic es in the Uni ted S tates . The compa ny taps music al collec tion to deliver s erv ice on computer, in the home, a nd on mobile devic es. I t collects melody, ha rmony , ins trumentation, rhy thm, voca ls , a nd ly rics of a s ong. P andora Media, I nc . was formerly known a s S a va ge B east T echnologies. T he compa ny wa s founded in 2000 and is based in Oa kland, C a lifornia . P eople Capital P eople Me dia P ro ton Media U nited S ta tes U nited S ta tes U nited S ta tes www.people2capital.com www.peoplemedia.com www.protonmedia.com The P eople C apital peer-to-peer s tudent loan lendi ng platform fa c ilitates lending decis ions ba s ed on a student’s “potential” ra ther tha n credit payment his tory . The P eople C a pital platform genera tes liquidity i n the ma rk et by ma tc hing a ll lenders wi th a ll borrowers, not just “family and P eople Media opera tes more tha n 20 v ertic ally focus ed on line c ommunities primarily gea red towa rds da ting. P rotonM edia LL C provides 3D virtua l world technology , and corpora te tra ining and developi ng s oftware for enterpris es . It offers P rotoS phere, a priv ate virtual world environment for c olla bora tion a nd lea rning, and a s uite of c ommunica tions a nd s ocial networking tools designed to overc ome linear communica tions a nd creates a networked lea rning orga niza tion. The c ompa ny ’s tools a lso ena ble tra iners a nd employees to intera ct a nd collaborate using the s ys tem's built-in a pplica tion s ha ring, voic e ov er I P , text c ha t, and video broa dc a s ting fa c ilities. I ts clients include bus iness a nd educ a tion sectors. P rotonM edia L LC wa s founded in 1998 and is bas ed in L a nsda le, P ennsy lvania . Q uick P lay M edia, Inc. prov ides media management a nd dis tribution solutions for mobile telev isi on (T V ) and video s ervic e compa nies. I t provides O p enV ideo, a pla tform that offers applic ation integra tion for mobile opera tors, media companies , a nd tec hnology pa rtners in N orth America a nd E urope. The compa ny als o offe rs mana ged s ervic es, inc luding ingestion and dis tribution of content, media mana gement, a pplica tion development, a nd reporting a nd s ettlemen t serv ices , a s well as li ve a nd on-dema nd c ontent serv ices . I n addition, it prov ides hosted solutions tha t integra te mobile TV /v ideo s ervic es into on-dec k and off-deck mobile Internet s ites , a nd content s yndica tion s ervic es. The c ompa ny was founded in 2004 a nd is headqua rtered in Toronto, C a na da. It ha s loca l s ales offices in N orth America a nd E urope. S ports blogs , Inc . , doing bus ines s a s S B N a tion, engages in building s ports s ites on the W eb. I t offers ba seball, bas k etba ll, college, footba ll, a nd hoc k ey blogs, a s well as genera l blogs , s uch a s fanta s y s ports , cy cling, auto rac ing, golf, fitness , fighting, a nd miscella neous . The company was incorpora ted i n 2004 a nd is ba sed in W as hington, Dis trict O f C olumbia . S ty leCa s ter M edia G roup, LL C provides online fa s hion-lifestyle information s ervi ces . The c ompany is ba sed in N ew Y ork , New Y ork . K IT N M edia enga ges in the development of fac ebook monetiz ation s oftwa re tool a nd i s based in the United S tates. As of J uly 21, 2009, K IT N M edia opera tes as a subs idia ry of Adk nowledge, I nc . Tributes , Inc. operates Tributes .c om, a n online resource for current loc a l a nd nationa l obi tuary news . T he company operates a s an online community to provide support during times of loss a nd griev ing. It a lso ena bles the v isitors to light c andles or pla ce online gifts on va rious current and his torica l obituaries a v ailable on the na tiona l o bituary news site, as well a s to sha re photos , v ideos, recollections , a nd other a rtifa cts . In addition, the c ompany ’s obituary and online memorial s ervic e information helps people to come together online a nd offline to remember a nd s hare the stories of the people in their lives who ha ve pa ss ed a way. I t has s tra tegic pa rtnerships with E ons , Inc . ; and D ow J ones & C ompa ny . T he company wa s founded in 2008 and is bas ed in B os ton, Ma s sa chusetts. T ributes , I nc. opera tes a s a s ubsidia ry of E ons, Inc . TweetD eck , I nc. offers a des k top a pplica tion to break twitter feeds into ma na gea ble bite s ized pieces . I ts applica tion ena bles users to split their main feed into topic or group spec ific columns a llowing a broader overview of the tweets . The compa ny wa s founded in 2008 a nd is based in London, the United K ingdom. X oopit, I nc. offers s ea rch engine tec hnologies tha t deliver sea rc h, productivity , a nd soc ia l media a pplica tions to I nternet users . T he company 's G raphica l Us er I nterfac e (G U I) allows users to see photos on a grid, such a s an iP hoto. X oopit, Inc . wa s incorporated in 2004 a nd is bas ed in S a n F ranc isc o, C a lifornia . As of J uly 22, 2009, X oopit, I nc. opera tes a s a s ubsidia ry of Y a hoo! I nc. Qu ic kP lay Media C a nada www.quickplaymedi a.com S BN atio n (S po rts blog s Inc .) U nited S ta tes www.sbnation.com S tyleCas ter S uper Rewards ( KITN Media) T ribu tes U nited S ta tes C a nada U nited S ta tes www.stylecaster.com www.srpoints.com www.tributes.com T weetdeck U nited K ingdom www.tweetdeck.com X oopit U nited S ta tes www.xoopit.com Figure 24. Company Descriptions Source. Company reports, Capital IQ, Crunchbase Page 22 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