June financing well ahead of average: Financing in the Web 2.0 universe in June was the third highest month (over the past 12) with total transaction value (excluding M&A) of $459.6 million from 51 transactions, averaging $9.0 million each - led by the $147 million Zynga financing. In comparison, total capital raised in June 2009 was $226.3 million, averaging $4.5 million over 50 deals. Excluding Dec 09 and Apr 10, the average monthly total is ~$260 million. Deals (M&A, Finance) Alloy, a provider of news and commentary concerning New Media, was acquired by ZelnickMedia for $127 mm. Facebook’s implied valuation rose to $24 bn as Elevation Partners purchased 5 mm shares of the company for $120 mm in the secondary market. Danish Skype competitor, Vopium, received $16.5 mm in financing from Indian financier, Raghuvinder Kataria. Social networking software developer based in France, Pearltrees, raised $1.6 mm. PapayaMobile, mobile application software company based in China, raised $4 mm. Two Israeli mobile developers received funding this week, including Perfecto Mobile ($4 mm) and Snaptu ($6 mm).
Negative price performance The Web 2.0 public company universe fell this week, with 68% of companies seeing their market cap fall vs. 25% rising and 7% flat.
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This report has been created by Analysts that are employed by Mackie Research Capital Corporation, a Canadian Investment Dealer.For further disclosures, please see last page of this report.
www.mackieresearch.com
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Key Developments (past week)
Deals (M&A, Finance) – Worldwide Financings – World Cup Related?
� Alloy, a provider of news and commentary concerning New Media, was acquired by ZelnickMedia for $127 mm.
� Facebook’s implied valuation rose to $24 bn as Elevation Partners purchased 5 mm shares of the company for $120 mm in the secondary market.
� Danish Skype competitor, Vopium, received $16.5 mm in financing from Indian financier, Raghuvinder Kataria.
� Social networking software developer based in France, Pearltrees, raised $1.6 mm.
� PapayaMobile, mobile application software company based in China, raised $4 mm.
� Two Israeli mobile developers received funding this week, including Perfecto Mobile ($4 mm) and Snaptu ($6 mm).
Financial Results/Guidance/Partnerships/Product� Multiplied Media (TSXV:MMC) announced the availability of local weather functionality
for the iPhone version of its Poynt local search mobile application.
www.mackieresearch.com3
Public Company Data
www.mackieresearch.com4
Aggregate Public Data
Web 2.0 Public Companies Total Median Max Min# Companies 101 - - -
Eight Diversified companies totaling $35 bn in market cap
www.mackieresearch.com18
Market Cap Ranking
0
1,000
2,000
3,000
4,000
5,000
6,000
Tencent H
old
ings L
td.
Dena C
o. Ltd
.N
ete
ase.c
om
Inc.
Gre
e, In
c.
Modern
Tim
es G
roup M
tg A
BIA
C/Inte
rActiv
eC
orp
.S
handa Inte
ractiv
e E
nte
rtain
ment Ltd
.A
OL, In
c.
Open T
ext C
orp
.G
iant In
tera
ctiv
e G
roup, In
c.
Sohu.c
om
Inc.
The N
ew
York
Tim
es C
om
pany
Changyou.c
om
Lim
ited
Perf
ect W
orld C
o., L
td.
Hutc
his
on T
ele
com
munic
atio
ns H
ong K
ong H
old
ings
Tale
o C
orp
.V
alu
eC
lick, In
c.
NE
OW
IZ G
am
es C
orp
ora
tion
SK
Com
munic
atio
ns C
o., L
td.
Chin
ese G
am
er
Inte
rnatio
nal
Mix
i, In
c.
Shutterf
ly, In
c.
Kin
gsoft C
orp
ora
tion L
imite
dU
nite
d O
nlin
e, In
c.
info
GR
OU
P, In
c.
RealN
etw
ork
s Inc.
CD
C C
orp
.G
ungH
o O
nlin
e E
nte
rtain
ment, Inc.
Gam
ania
Dig
ital E
nte
rtain
ment C
o., L
td.
NetD
ragon W
ebS
oft, In
c.
Velti
Plc
Myriad G
roup A
GX
ING
AG
Openw
ave S
yste
ms Inc.
Flu
id M
usic
Canada, In
c.
OA
O R
BC
Info
rmatio
n S
yste
ms
Gig
aM
edia
Ltd
.W
ebzen Inc.
The9 L
imite
dA
Q Inte
ractiv
e, In
c.
TheS
treet.com
, In
c.
HU
GH
ES
Tele
matic
s, In
c.
Acto
z S
oft C
o., L
td.
Poin
ts Inte
rnatio
nal L
td.
HanbitS
oft, In
c.
Gam
eO
n C
o L
td.
Cyberp
lex Inc.
DA
DA
SpA
Paid
Inc.
Tre
e.C
om
, In
c.
Spark
Netw
ork
s, In
c.
Score
Media
Inc.
Fro
gste
r In
tera
ctiv
e P
ictu
res A
GN
euLio
n Incorp
ora
ted
YD
Onlin
e C
orp
.Q
uepasa C
orp
.P
NI D
igita
l Media
Inc.
Moggle
, In
cN
gi G
roup Inc.
Gra
vity
Co., L
tdP
latform
a M
edio
wa P
oin
t G
roup S
.A.
Glu
Mobile
, In
c.
WebM
edia
Bra
nds Inc
Dig
italT
ow
n, In
c.
Tra
nsG
am
ing, In
c.
eP
ro L
td.
Multi
plie
d M
edia
Corp
ora
tion
Socia
lwis
e, In
c.
LookS
mart
, Ltd
.G
eoS
entr
ic O
yj
Accele
rize N
ew
Media
, In
c.
Ynk K
ore
a Inc.
Asknet A
GN
eX
plo
re C
orp
ora
tion
VO
IS, In
c.
Nort
hgate
Technolo
gie
s L
imite
dW
izzard
Softw
are
Corp
ora
tion
Lin
go M
edia
Corp
ora
tion
Dolp
hin
Dig
ital M
edia
, In
c.
Jum
buck E
nte
rtain
ment Lim
ited
iseem
edia
Inc.
Unila
va C
orp
ora
tion
Inte
rnet G
roup S
AS
ocia
lGO
PLC
Kent In
tern
atio
nal H
old
ings Inc.
Dig
italP
ost In
tera
ctiv
e, In
c.
MO
KO
.mobi L
imite
dW
orlds.c
om
Inc.
SN
AP
Inte
ractiv
e, In
c.
Beyond C
om
merc
e, In
c.
YouB
last G
lobal,
Inc.
En2G
o Inte
rnatio
nal,
Inc.
Spectr
um
DN
A, In
c.
Kiw
ibox.C
om
, In
c.
IAS
Energ
y, In
c.
Unis
erv
e C
om
munic
atio
ns C
orp
.O
riente
d M
edia
Gro
up B
erh
ad
Corn
erW
orld C
orp
ora
tion
Bro
adW
ebA
sia
Inc.
UO
MO
Media
, In
cM
obile
Data
Corp
.
Source: CapitalIQ
Tencent’s $31 bn market cap dominates group
www.mackieresearch.com19
Price Performance – 1 Week
Price Momentum• Negative price momentum, with 66% of
stocks falling over the past week.
• The market has oscillated between up and down weeks fairly consistently in the last two months.
Rising
25%
Flat
9%
Falling
66%
www.mackieresearch.com20
Average Price Performance – 1 Week, by Sector
14.6%13.7%
7.4%5.9%
3.3%1.5% 0.7% 0.0%
-0.4% -0.6%-2.0% -2.4% -3.1% -3.2%
-4.5% -4.7% -4.9%-6.0%
-8.3% -8.8%-10.5%
-13.3%-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
Vid
eo
Vir
tua
l W
orl
d
Ad
vert
isin
g
Infr
astru
ctu
re
En
terp
rise
Sea
rch
Ma
rketin
g
Po
dca
stin
g
Inte
rnet R
eta
il
Co
llab
ora
tion
Pa
ym
en
t
Ga
min
g
Mo
bile
Div
ers
ifie
d
Datin
g
Mu
sic
Fin
an
cia
l
Se
rvic
es
Ve
rtic
al
Co
mm
un
itie
s
Le
arn
ing
Me
dia
So
cia
l
Ne
two
rkin
g
SM
S/V
oic
e
Source: CapitalIQ
Video sector shows highest weekly returns
www.mackieresearch.com21
Price Performance – 1 Week
-80.0%
-60.0%
-40.0%
-20.0%
0.0%
20.0%
40.0%
60.0%
YB
LT
BW
BA
IAS
C.A
BY
OC
UN
LA
VO
IST
SX
V:T
NG
24
97
DP
DM
MK
BT
SX
V:M
MC
SE
HK
:80
86
PW
RD
OM
ED
IAN
XP
CK
IWB
UO
MO
WS
E:IG
RA
SX
:JM
BH
UT
CA
IM:S
GO
TS
XV
:LM
TS
E:2
43
2D
GT
WC
YO
US
OH
UR
NW
KG
RV
YW
EB
MA
05
27
70
KO
SE
:A0
69
08
0S
TV
IV
EL
AO
LG
TS
M:3
08
3T
RE
EW
SE
:PG
MN
TE
SV
CL
K3
88
83
81
2X
TR
A:A
5A
RB
CI
IEE
61
80
NY
TL
OV
UN
TD
GA
LO
OK
TS
XV
:PN
MT
G B
TS
E:3
63
2IA
CI
DG
LP
SC
LW
GIG
MT
SX
:CX
70
0A
02
37
70
SN
DA
MY
RN
A0
52
79
0A
09
56
60
OT
EX
OP
WV
IUS
AG
EO
1V
MB
YL
TS
X:P
TS
CW
RL
ET
GI
WZ
ES
EH
K:2
15
DB
:M0
CO
1B
C
TS
X:F
MN
TS
CM
A0
66
27
0T
LE
OS
FL
Y7
77
GL
UU
NC
TY
21
21
CM
:DA
TS
X:S
CR
38
38
PA
YD
A0
47
08
0F
RG
CH
IN.A
KN
TH
TS
XV
:US
S3
76
55
90
05
7Q
PS
AT
SX
:NL
NS
PX
AA
CL
ZW
DD
D
Source: CapitalIQ
www.mackieresearch.com22
Price Performance (Top 10)
1 Month
0%5%
10%15%20%25%30%35%40%45%50%
Un
ise
rve
Co
mm
un
ica
tion
s
Co
rp.
SN
AP
Inte
ract
ive
, In
c.
Gre
e,
Inc.
Ha
nb
itS
oft
, In
c.
SK
Co
mm
un
ica
tion
s
Co
., L
td.
Act
oz S
oft
Co
.,
Ltd
.
Cyb
erp
lex
Inc.
AQ
In
tera
ctiv
e,
Inc.
Ne
uL
ion
Inco
rpo
rate
d
Fro
gste
r
Inte
ractiv
e
Pic
ture
s A
G
3 Month
0%20%
40%60%
80%100%
120%140%
160%180%
Beyond
Com
merc
e,
Inc.
eP
ro L
td.
SK
Com
munic
ations
Co.,
Ltd
.
Poin
ts
Inte
rnational Ltd
.
Unis
erv
e
Com
munic
ations
Corp
.
Glu
Mobile
, In
c.
Velti P
lc
Gre
e,
Inc.
AQ
Inte
ractive,
Inc.
LookS
mart
, Ltd
.
6 Month
0%
500%
1000%
1500%
2000%
2500%
3000%
OA
O R
BC
Info
rmation
Syste
ms
eP
ro L
td.
Beyond
Com
merc
e,
Inc.
AQ
Inte
ractive,
Inc.
Score
Media
Inc.
Unis
erv
e
Com
munic
ations
Corp
.
Velti P
lc
Quepasa C
orp
.
SN
AP
Inte
ractive,
Inc.
Poin
ts
Inte
rnational Ltd
.1 Year
0%
500%
1000%
1500%
2000%
2500%
3000%
3500%
4000%
4500%
OA
O R
BC
Info
rma
tio
n
Sys
tem
s
eP
ro L
td.
Qu
ep
asa
Co
rp.
Ve
lti P
lc
Flu
id M
usi
c
Ca
na
da
, In
c.
De
na
Co
. L
td.
AQ
In
tera
ctiv
e,
Inc.
SK
Co
mm
un
ica
tion
s
Co
., L
td.
Gre
e,
Inc.
Tra
nsG
am
ing
,
Inc.
Source: CapitalIQ
www.mackieresearch.com23
Price Performance (Bottom 10)
1 Week
-70.0%
-60.0%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
MO
KO
.mobi
Lim
ited
Multi
plie
d
Media
Corp
ora
tion
Dolp
hin
Dig
ital
Media
, In
c.
Ngi G
rou
p Inc.
Tra
nsG
am
ing,
Inc.
VO
IS,
Inc
.
Unila
va
Corp
ora
tion
Be
yond
Co
mm
erc
e,
Inc.
IAS
En
erg
y,
Inc.
Bro
adW
ebA
sia
Inc.
YouB
last
Glo
ba
l, In
c.
1 Month
-90.0%
-80.0%
-70.0%
-60.0%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
Lin
go M
edia
Co
rpora
tion
Beyo
nd
Co
mm
erc
e,
Inc
.
VO
IS, In
c.
Dolp
hin
Dig
ital
Me
dia
, In
c.
Ge
oS
entr
ic O
yj
Bro
adW
eb
Asia
Inc.
Mo
bile
Data
Corp
.
Corn
erW
orl
d
Corp
ora
tion
YouB
last
Glo
ba
l, In
c.
Unila
va
Co
rpora
tion
6 Month
-100.0%
-90.0%
-80.0%
-70.0%
-60.0%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
Sp
ectr
um
DN
A,
Inc.
Lin
go
Me
dia
Co
rpora
tion
VO
IS, In
c.
YouB
last
Glo
bal,
Inc.
MO
KO
.mo
bi
Lim
ited
En2G
o
Inte
rnatio
na
l,
Inc.
UO
MO
Me
dia
,
Inc
Corn
erW
orld
Corp
ora
tion
Un
ilava
Co
rpora
tion
Bro
adW
eb
Asia
Inc
.1 Year
-120.0%
-100.0%
-80.0%
-60.0%
-40.0%
-20.0%
0.0%
Moggle
, In
c
Lin
go M
edia
Corp
ora
tion
Dolp
hin
Dig
ital
Media
, In
c.
Spectr
um
DN
A,
Inc.
IAS
Energ
y,
Inc.
Beyond
Com
merc
e,
Inc.
Corn
erW
orld
Corp
ora
tion
UO
MO
Media
,
Inc
En2G
o
Inte
rnatio
nal,
Inc.
Bro
adW
ebA
sia
Inc.
Source: CapitalIQ
www.mackieresearch.com24
Capital Market Activity (Financing, M&A)
www.mackieresearch.com25
Financing Activity – Current MonthCom pany Nam e C ountry Sector Acquis ition Angel/Seed Debt financing Ser ies A Series B Series C Series D Series E NA Grand Total
Zynga US A Gaming 147.0 147.0
Alloy US A Media 126.5 126.5
Invite Media US A Analytics 70.0 70.0
FetchBack US A Advertis ing 40.0 40.0
Playdom US A Gaming 33.0 33.0
HauteL ook US A Internet R etail 31.0 31.0
Challenge Games US A Gaming 20.5 20.5
Mytopia Is rael Gaming 18.0 18.0
Vopium Denmark SMS /V oice 16.5 16.5
ReputationDefender US A Comment/Reputation 15.0 15.0
Brand.net US A Advertis ing 14.0 14.0
Marin Softw are US A Advertis ing 11.2 11.2
GetJ ar Netw ork s US A Mobile 11.0 11.0
Book Rente r US A S oc ial Commerce 10.0 10.0
Apptera US A Mobile Ad 10.0 10.0
Rock You US A Widget 10.0 10.0
Extrem eReach US A Advertis ing 9.0 9.0
Machinim a.com US A V irtual World 9.0 9.0
Safe tyWeb US A Social Netw orks 8.0 8.0
Kudzu Inte ractive US A Financial S ervices 7.0 7.0
Socialwise, Inc. SCLW OTCBB USD United States 0.49 24.5 NA
Sohu.com Inc. SOHU NasdaqGS USD China 41.54 1,571.0 3,997
Spark Networks, Inc. LOV AM EX USD United States 3.43 70.6 155
SpectrumDNA, Inc. SPXA OTCBB USD United States 0.07 4.8 8
Taleo Corp. TLEO NasdaqGM USD United States 26.02 1,034.6 916
Tencent Holdings Ltd. 700 SEHK HKD China 130.20 30,613.7 7,845
The New York Times Company NYT NYSE USD United States 9.74 1,418.1 7,665
The9 Limited NCTY NasdaqGS USD China 4.18 106.6 1,010
TheStreet.com, Inc. TSCM NasdaqGM USD United States 2.95 93.1 274
TransGaming, Inc. TSXV:TNG TSXV CAD Canada 0.55 31.6 28
Tree.Com, Inc. TREE NasdaqGM USD United States 6.54 73.3 700
Unilava Corporation UNLA OTCBB USD United States 0.08 8.0 40
Uniserve Communications Corp. TSXV:USS TSXV CAD Canada 0.13 3.6 NA
United Online, Inc. UNTD NasdaqGS USD United States 6.16 536.7 1,699
UOM O M edia, Inc UOM O OTCBB USD Canada 0.02 1.4 NA
ValueClick, Inc. VCLK NasdaqGS USD United States 11.50 935.2 1,086
Velti P lc VEL AIM GBP United Kingdom 4.27 241.9 459
VOIS, Inc. VOIS OTCBB USD United States 0.01 14.2 2
WebM ediaBrands Inc WEBM NasdaqGS USD United States 0.94 35.2 83
Webzen Inc. KOSE:A069080 KOSE KRW South Korea 11,050.00 108.9 326
Wizzard Software Corporation WZE AM EX USD United States 0.20 13.2 80
Worlds.com Inc. WDDD OTCBB USD United States 0.10 5.7 1
XING AG O1BC XTRA EUR Germany 28.35 180.4 293
YD Online Corp. A052770 KOSE KRW South Korea 4,510.00 56.3 NA
Ynk Korea Inc. A023770 KOSE KRW South Korea 2,900.00 19.2 NA
YouBlast Global, Inc. YBLT OTCBB USD United States 0.15 5.2 6
www.mackieresearch.com39
Disclaimer
RELEVANT DISCLOSURES APPLICABLE TO: NONE
1. None applicable.
ANALYST CERTIFICATION
Each analyst of Mackie Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.
This report has been created by Analysts that are employed by Mackie Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report.Information about Mackie Research Capital Corporation’s Rating System, the distribution of our research to clients and the percentage of recommendations which are in each of our rating categories is available on our web site at www.mackieresearch.com. The information contained in this report has been drawn from sources believed to be reliable but its accuracy or completeness is not guaranteed, nor in providing it does Mackie Research Capital Corporation assume any responsibility or liability. Mackie Research Capital Corporation, its directors, officers and other employees may, from time to time, have positions in the securities mentioned herein. Contents of this report cannot be reproduced in whole or in part without the expressed permission of Mackie Research Capital Corporation. (U.S. Institutional Clients — Research Capital U.S.A. Inc. (a wholly owned subsidiary of Mackie Research Capital Corporation) accepts responsibility for the contents of this report subject to the terms & limitations set out above. Firms orinstitutions receiving this report should effect transactions in securities discussed in the report through Research Capital U.S.A. Inc., a Broker-Dealer Registered with the United States Securities and Exchange Commission).
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