Summer financing doldrums: After a very strong June (with total transaction value (excluding M&A) of $542.8 million from 66 transactions, averaging $8.4 million each), July has started very slowly with only one small financing announced. However, we have seen some large M&A transactions (see below). In comparison, total capital raised in July 2009 was $206.2 million, averaging $5.4 million over 38 deals. Excluding Dec 09 and Apr 10, the average monthly total is ~$270 million. Deals (M&A, Finance) Google, acquired ITA Software, search provider for the travel industry for $700 mm.
infoGROUP, provider of business and consumer databases for sales leads, mailing lists, direct marketing, database marketing, e-mail marketing, and marketing research solutions, was taken private for $645 mm by CCMP Capital Advisers.
GroupSpaces, a provider of web-based tools for sports clubs, university societies, organizations, and groups of friends or coworkers, raised $1.3 mm.
Domain based online advertising services provider, OCTANE360, was acquired by Local.com for $10.9 mm.
Negative price performance The Web 2.0 public company universe fell again this week, with 61% of companies seeing their market cap fall vs. 27% rising and 12% flat.
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Key Developments (past week)
Deals (M&A, Finance) – Big Acquisitions, Little Financing
� Google, acquired ITA Software, search provider for the travel industry for $700 mm.
� infoGROUP, provider of business and consumer databases for sales leads, mailing lists, direct marketing, database marketing, e-mail marketing, and marketing research solutions, was taken private for $645 mm by CCMP Capital Advisers.
� GroupSpaces, a provider of web-based tools for sports clubs, university societies, organizations, and groups of friends or coworkers, raised $1.3 mm.
� Domain based online advertising services provider, OCTANE360, was acquired by Local.com for $10.9 mm.
Financial Results/Guidance/Partnerships/Product� Points International Ltd. (TSX:PTS) announced that it has formed a partnership with
The Mileage Company. The new partnership means that Airmiles UK members can now purchase miles for themselves or gift Airmiles to other members.
� RealNetworks Inc. (NasdaqGS:RNWK) is once again scaling back its operations and announced a restructuring of its operations which includes layoffs of 85 employees. The layoffs include a 25% reduction in its executive ranks and the reorganization seeks to streamline its technology and media services divisions. The company is now down to 1,365 employees from 1,700, with roughly 65 layoffs coming out of the Seattle office.
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Public Company Data
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Aggregate Public Data
Web 2.0 Public Companies Total Median Max Min# Companies 103 - - -
NeXplore Corporation NXPC OTCPK USD United States 0 17.8 NA
Ngi Group Inc. 2497 TSE JPY Japan 32,350 45.7 NA
Northgate Technologies Limited 590057 BSE INR India 17 12.4 NA
OAO RBC Information Systems RBCI M ICEX RUB Russia 34 145.2 2,523
Open Text Corp. OTEX NasdaqGS USD Canada 37 2,120.7 3,700
Openwave Systems Inc. OPWV NasdaqGS USD United States 2 162.7 590
Oriented M edia Group Berhad OM EDIA KLSE M YR M alaysia 0 3.3 NA
Paid Inc. PAYD OTCBB USD United States 0 71.9 20
Perfect World Co., Ltd. PWRD NasdaqGS USD China 22 1,115.9 2,896
Platfo rma M ediowa Point Group S.A. WSE:PGM WSE PLN Poland 1 46.5 NA
PNI Digital M edia Inc. TSXV:PN TSXV CAD Canada 1 46.3 NA
Points International Ltd. TSX:PTS TSX CAD Canada 1 88.5 93
Quepasa Corp. QPSA OTCBB USD United States 4 51.1 71
RealNetworks Inc. RNWK NasdaqGS USD United States 3 445.0 1,754
Score M edia Inc. TSX:SCR TSX CAD Canada 1 64.0 230
Shanda Interactive Entertainment Ltd. SNDA NasdaqGS USD China 38 2,251.6 5,721
Shutterfly, Inc. SFLY NasdaqGS USD United States 24 640.2 519
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Public Company Listing cont.
Company Name Ticker E xchange
Trading
Currency HQ
Current
Price
US$ Market
Cap (mm) Employees
S K C ommunications C o. , L td. A066270 KOS E K R W S outh K orea 17,950 604.8 519
S NAP Interactive, Inc. S T V I OTC B B US D United S tates 0 5.6 NA
S ocia lGO P LC AIM:S GO AIM GB P United K ingdom 0 5.6 15
S ocia lwise, Inc. S C LW OTCB B US D United S tates 1 25.0 9
S ohu.com Inc. S OHU NasdaqG S US D China 41 1,538.4 NA
S park Networks , Inc. LOV AME X US D United S tates 3 66.9 3,997
S pectrumDNA, Inc. S P XA OTCB B US D United S tates 0 4.8 155
T a leo C orp. T LE O NasdaqGM US D United S tates 24 943.9 8
T encent Holdings Ltd. 700 S E HK HKD China 130 30,629.6 916
T he New Y ork T imes C ompany NY T NY S E US D United S tates 9 1,237.6 7,845
T he9 L imited NC T Y NasdaqG S US D China 4 108.7 7,665
T heS treet.com, Inc. T S CM NasdaqGM US D United S tates 3 90.2 1,010
T ransG aming, Inc. T S XV :TNG T S XV CAD Canada 1 33.5 274
T ree.C om, Inc. T R E E NasdaqGM US D United S tates 6 67.5 28
Unilava C orporation UNLA OTCB B US D United S tates 0 8.0 700
Uniserve C ommunications C orp. T S XV :US S T S XV CAD Canada 0 3.0 40
United Online, Inc. UNTD NasdaqG S US D United S tates 6 486.2 NA
UOMO Media , Inc UOMO OTCB B US D C anada 0 1.3 1,699
V alueC lick , Inc. V C LK NasdaqG S US D United S tates 11 862.9 NA
V elti P lc V E L AIM GB P United K ingdom 4 231.7 1,086
VOIS , Inc. V OIS OTCB B US D United S tates 0 14.2 459
W ebMediaB rands Inc W E BM NasdaqG S US D United S tates 1 31.4 2
W ebzen Inc. K OS E :A069080 KOS E K R W S outh K orea 10,650 103.2 83
W izzard S oftware C orporation W ZE AME X US D United S tates 0 13.2 326
W orlds .com Inc. W DDD OTCB B US D United S tates 0 1.4 80
XING AG O1B C XT R A E UR Germany 28 180.6 1
YD Online C orp. A052770 KOS E K R W S outh K orea 4,460 54.7 293
Y ippy, Inc. Y IP I OTC B B US D United S tates 3 63.6 NA
Y nk K orea Inc. A023770 KOS E K R W S outh K orea 2,945 19.2 NA
Y ouB las t G lobal, Inc. Y B LT OTCB B US D United S tates 0 16.2 NA
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