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Web 2.0 Weekly
DST cashes up and then spends more
Copyright 2000-2010, Mackie Research Capital Corporation, All rights reserved
April 20, 2010
David Shore, CFA, MBA [email protected]
Damian Wojcichowsky, CFA 416.860.7652
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 Tencent (SEHK:700) invests $300mm in Digital Sky Technologies (investor in Facebook, Zynga etc.)
DST invests $135mm in Groupon at $1.2b valuation
Frogster Interactive Pictures AG (XTRA:FRG) reported revenue for 2009 rose 6x to Euro16.7mm withnet profit of Euro2.3mm
Webzen Inc. (KOSE: A069080) signed an agreement to acquire NHN Games Co., Ltd. forapproximately KRW 240b
The9 Limited (NasdaqGS:NCTY) reported consolidated earnings results for the fourth quarter and fullyear ended December 31, 2009. For the quarter, the company reported loss from operations of RMB
220.2mm on revenue of RMB22.5mm
NetDragon WebSoft, Inc. (SEHK:777) announced unaudited consolidated earnings results for the fourthquarter ended December 31, 2009. For the quarter, the company reported operating profit of RMB1,584,000 on revenues of RMB 134,190,000.
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Aggregate Public Data
Web 2.0 Public Companies Total Median Max Min# Companies 98 - - -
Market Cap (US$ mm) 81,864.6 76.0 37,060.2 1.7
Revenue (US$ mm) 90,908.6 22.7 67,563.7 0.0
1 Year revenue growth 4.3% 1178.9% -91.4%
EBITDA as % of revenue - 5.9% 62.7% -91.9%
Net cash (US$ mm) 9,008.8 1.5 1,754.9 -732.7TEV/Revenue - 1.9x 46.6x 0.1x
TEV/EBITDA - 8.7x 43.5x 0.1x
P/E - 14.1x 92.7x 0.0x
Relative to 52 week high -32.1% -1.9% -98.1%
Source: CapitalIQ
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Public Company Distribution
26
16
10
6 65
43 3 3
2 2 2 21 1 1 1 1 1 1 1
0
5
10
15
20
25
30
Gaming
SocialNetworking
Media
Diversified
Marketing
Mobile
Advertising
Infrastructure
SMS/Voice
Enterprise
InternetRetail
VirtualWorld
Dating
Music
Ve
rticalCommunities
Collaboration
Podcasting
Search
Video
Learning
Payment
FinancialServices
By Sector By Country
0
5
10
15
20
25
30
35
40
45
UnitedStates
Canada
China
SouthKorea
Japan
Taiwan
Germany
Australia
Un
itedKingdom
Poland
Malaysia
Russia
Finland
Sweden
HongKong
India
Italy
Switzerland
Israel
Source: CapitalIQ
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Valuation Dashboard 1 Week
Rising
38%
Falling
52%
Flat
10%
Rising
53%
Falling43%
Flat4%
Rising
54%
Falling
41%
Flat
5%
Market Cap
Rising57%
Falling43%
Flat
0%
EV/Revenue
EV/EBITDA P/E
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Median EV/Revenue
0.0x
0.5x
1.0x
1.5x
2.0x
2.5x
3.0x
3.5x
4.0x
4.5x
5.0x
3/2/2009
3/9/2009
3/16/2009
3/23/2009
3/30/2009
4/6/2009
4/13/2009
4/20/2009
4/27/2009
5/4/2009
5/11/2009
5/18/2009
5/25/2009
6/1/2009
6/8/2009
6/15/2009
6/22/2009
6/29/2009
7/6/2009
7/13/2009
7/20/2009
7/27/2009
8/3/2009
8/10/2009
8/17/2009
8/24/2009
8/31/2009
9/7/2009
9/14/2009
9/21/2009
9/28/2009
10/5/2009
10/12/2009
10/19/2009
10/26/2009
11/2/2009
11/9/2009
11/16/2009
11/23/2009
11/30/2009
12/7/2009
12/14/2009
12/21/2009
12/28/2009
1/4/2010
1/11/2010
1/18/2010
1/25/2010
2/1/2010
2/8/2010
2/15/2010
2/22/2010
3/1/2010
3/8/2010
3/15/2010
3/22/2010
3/29/2010
4/5/2010
4/12/2010
4/19/2010
373837393939404039414142434444444445474848484750535356585761636364616162666868697168646870716873717475777575747678788280
Multiple(x)
Median Long-term average
# companies
Source: CapitalIQ
Revenue multiplesrecovering but
below LT Average
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Median EV/EBITDA
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
3/2/2009
3/9/2009
3/16/2009
3/23/2009
3/30/2009
4/6/2009
4/13/2009
4/20/2009
4/27/2009
5/4/2009
5/11/2009
5/18/2009
5/25/2009
6/1/2009
6/8/2009
6/15/2009
6/22/2009
6/29/2009
7/6/2009
7/13/2009
7/20/2009
7/27/2009
8/3/2009
8/10/2009
8/17/2009
8/24/2009
8/31/2009
9/7/2009
9/14/2009
9/21/2009
9/28/2009
10/5/2009
10/12/2009
10/19/2009
10/26/2009
11/2/2009
11/9/2009
11/16/2009
11/23/2009
11/30/2009
12/7/2009
12/14/2009
12/21/2009
12/28/2009
1/4/2010
1/11/2010
1/18/2010
1/25/2010
2/1/2010
2/8/2010
2/15/2010
2/22/2010
3/1/2010
3/8/2010
3/15/2010
3/22/2010
3/29/2010
4/5/2010
4/12/2010
4/19/2010
212020222223232222232423222424262626262625262628302830333436403738363839383737404140404141414342434342484847484949474745
Multiple(x)
Median Long-term average
# companies
Source: CapitalIQ
EV/EBITDA multiplesremain depressedbelow LT average
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Median P/E
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
30.0x
3/2/2009
3/9/2009
3/16/2009
3/23/2009
3/30/2009
4/6/2009
4/13/2009
4/20/2009
4/27/2009
5/4/2009
5/11/2009
5/18/2009
5/25/2009
6/1/2009
6/8/2009
6/15/2009
6/22/2009
6/29/2009
7/6/2009
7/13/2009
7/20/2009
7/27/2009
8/3/2009
8/10/2009
8/17/2009
8/24/2009
8/31/2009
9/7/2009
9/14/2009
9/21/2009
9/28/2009
10/5/2009
10/12/2009
10/19/2009
10/26/2009
11/2/2009
11/9/2009
11/16/2009
11/23/2009
11/30/2009
12/7/2009
12/14/2009
12/21/2009
12/28/2009
1/4/2010
1/11/2010
1/18/2010
1/25/2010
2/1/2010
2/8/2010
2/15/2010
2/22/2010
3/1/2010
3/8/2010
3/15/2010
3/22/2010
3/29/2010
4/5/2010
4/12/2010
4/19/2010
171920191818181919192019181919192021242525252526262629303029323132323536363636373839373737363536323130333232323232323130
Multiple(x)
Median Long-term average
# companies
Source: CapitalIQ
P/E multiples alsobelow LT average
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Average Valuation by Sector
-
5.0
10.0
15.0
20.0
25.0
Infrastructure
SMS/Voice
SocialNetworking
Diversified
Music
Learning
Marketing
Mobile
VerticalCommunities
Gaming
Podcasting
Collaboration
Search
Video
Advertising
InternetRetail
Enterprise
Dating
Media
FinancialServices
VirtualWorld
2 3 7 4 2 1 5 4 1 20 1 1 1 1 4 2 3 2 9 1 1# Companies
-
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
Search
Enterprise
Diversified
Mobile
Media
Collaboration
InternetRetail
SocialNetworking
FinancialServices
Gaming
Marketing
Dating
Advertising
1 2 4 1 6 1 2 5 1 12 3 1 1# Companies
EV/Revenue EV/EBITDA
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EV/Revenue Ranking
0.10.20.20.20.40.40.40.40.40.40.50.50.50.50.60 .70.70.80.80.80.90.90.9 1.0 1.0 1.0 1.2 1.2 1.2
1.3 1.3 1.5 1.6 1.6 1.6 1.7 1.8 1.9 1.92.12.12.22.22 .32.32.32.42.6 2.7
3.03.23.23.23.33.34.14.54.7
5.45.45.56.06.4
7.88.49.39.49.9
12.4
15.4
20.020.6
22.2
31.4
46.6
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
PerfectWorldCo.,Ltd.
NgiGroupInc.
AsknetAG
CyberplexInc.
R
ealNetworksInc.
JumbuckEntertainmentLimited
Betaw
aveCorporation
Tree.Com,Inc.
UniserveCommunicationsCorp.
Ac
tozSoftCo.,Ltd.
GluMobile,Inc.
GameOnCoLtd.
Points
InternationalLtd.
GigaMediaLtd.
OpenwaveSystemsInc.
NorthgateTec
hnologiesLimited
DADASpA
InternetGroupSA
IAC
/InterActiveCorp.
Th
eStreet.com,Inc.
AOL,Inc.
CDCCorp.
U
nitedOnline,Inc.
CornerW
orldCorporation
AQInteractive,Inc.
TheNewYorkTimesCompany
OAORBCInformationSystems
BeyondCommerce,Inc.
GamaniaDigitalEntertainmentCo.,Ltd.
infoGROUP,Inc.
HanbitSoft,Inc.
YDOnlineCorp.
ValueClick,Inc.
Spa
rkNetworks,Inc.
NetDragonWebSoft,Inc.
YnkKoreaInc.
Shutterfly,Inc.
ScoreMediaInc.
SNA
PInteractive,Inc.
PN
IDigitalMediaInc.
VeltiPlc
ModernTim
esGroupMtgAB
NeuLionIncorporated
XINGAG
OrientedMediaGroupBerhad
UOMOMedia,Inc
GungHoOnlineEntertainment,Inc.
SKCommunicationsCo.,Ltd.
Sohu.comInc.
MyriadGroupAG
WebzenInc.
OpenTextCorp.
iseemediaInc.
NEOWIZG
amesCorporation
WizzardSoftw
areCorporation
TaleoCorp.
DigitalPostInteractive,Inc.
Web
MediaBrandsInc
KingsoftCorporationLimited
Chan
gyou.comLimited
LingoM
ediaCorporation
Accelerize
NewMedia,Inc.
Mixi,Inc.
FrogsterIntera
ctivePicturesAG
Un
ilavaCorporation
HUGHE
STelematics,Inc.
FluidM
usicCanada,Inc.
Gree,Inc.
ChineseGamerInternational
GeoSentricOyj
PaidInc.
MOKO.mobiLimited
TencentHoldingsLtd.
BrightThingsplc
SpectrumDNA,Inc.
Source: CapitalIQ
Spectrum has highestrevenue multiple
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EV/EBITDA Ranking
0.1 0.92.1 2.2 2.3 2.6
4.55.7 6.2
6.9 7.1 7.2 7.5 7.5 7.87.9 8.2 8.4 8.4 8.6 8.7 9.7 10.3
10.711.8 12.1
12.813.413.914.014.0
16.5 16.616.8
21.322.9
28.9
31.6
39.6
43.5
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
PerfectWorldCo.,Ltd.
JumbuckEntertainmentLimited
GameOnCoLtd.
ActozSoftCo.,Ltd.
CyberplexInc.
AOL,Inc.
U
nitedOnline,Inc.
ValueClick,Inc.
Sohu.comInc.
YDOnlineCorp.
GamaniaDigitalEntertainmentCo.,Ltd.
DADASpA
infoGROUP,Inc.
SparkNetworks,Inc.
TheNewYork
TimesCompany
CDCCorp.
UniserveCommunicationsCorp.
XINGAG
PNIDigitalMediaInc.
Changyou.comLimited
NetDrag
onWebSoft,Inc.
Tree.Com,Inc.
VeltiPlc
GungHoOnlineE
ntertainment,Inc.
OpenTextCorp.
NEOWIZG
amesCorporation
KingsoftCo
rporationLimited
ScoreMediaInc.
Shutterfly,Inc.
IAC
/InterActiveCorp.
Openwa
veSystemsInc.
YnkKoreaInc.
ModernTim
esGroupMtgAB
Gree,Inc.
Mixi,Inc.
ChineseGamerInternational
Th
eStreet.com,Inc.
TaleoCorp.
SKCommunicationsCo.,Ltd.
Tenc
entHoldingsLtd.
Excluding EV/EBITDA > 100xSource: CapitalIQ
Tencent hashighest valuation
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P/E Ranking
1.8 1.9 2.1 2.54.4
6.3 6.48.3
10.5 11.2 11.5 11.6 11.914.0 14.3
18.2 20.420.9 22.4
26.129.8
33.235.6
40.4
56.4 56.6
61.2
88.1
92.7
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
PerfectWorldCo.,Ltd.
ShandaInteractiveE
ntertainmentLtd.
GiantInteractiveGroup,Inc.
Netease.comInc.
JumbuckEntertainmentLimited
CyberplexInc.
GigaMediaLtd.
YDOnlineCorp.
U
nitedOnline,Inc.
DADASpA
AOL,Inc.
Changyou.comLimited
GameOnCoLtd.
Sohu.comInc.
ValueClick,Inc.
KingsoftCo
rporationLimited
CDCCorp.
VeltiPlc
GamaniaDigitalEntertainmentCo.,Ltd.
NetDrag
onWebSoft,Inc.
ChineseGamerInternational
Gree,Inc.
NEOWIZG
amesCorporation
OpenTextCorp.
Tenc
entHoldingsLtd.
Mixi,Inc.
GungHoOnlineE
ntertainment,Inc.
HanbitSoft,Inc.
ActozSoftCo.,Ltd.
Source: CapitalIQ
Actoz has highestP/E
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Total Market Capitalization - $80B
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
4/27/2009
5/4/2009
5/11/2009
5/18/2009
5/25/2009
6/1/2009
6/8/2009
6/15/2009
6/22/2009
6/29/2009
7/6/2009
7/13/2009
7/20/2009
7/27/2009
8/3/2009
8/10/2009
8/17/2009
8/24/2009
8/31/2009
9/7/2009
9/14/2009
9/21/2009
9/28/2009
10/5/2009
10/12/2009
10/19/2009
10/26/2009
11/2/2009
11/9/2009
11/16/2009
11/23/2009
11/30/2009
12/7/2009
12/14/2009
12/21/2009
12/28/2009
1/4/2010
1/11/2010
1/18/2010
1/25/2010
2/1/2010
2/8/2010
2/15/2010
2/22/2010
3/1/2010
3/8/2010
3/15/2010
3/22/2010
3/29/2010
4/5/2010
4/12/2010
4/19/2010
94 94 94 94 93 94 94 94 94 94 94 94 94 94 94 94 94 94 94 93 94 94 94 94 94 94 94 94 94 95 95 97 97 97 97 97 97 97 97 97 97 97 97 98 98 98 98 98 98 98 98 98
(US$m)
# companies
Source: CapitalIQ
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Total Market Cap by Sector
-
5,000.0
10,000.0
15,000.0
20,000.0
25,000.0
30,000.0
35,000.0
40,000.0
45,000.0
Diversified
Ga
ming
M
edia
SocialNetwo
rking
Collaboration
Mark
eting
Enterprise
InternetRetail
Search
M
obile
SMS/Voice
M
usic
FinancialServices
D
ating
VirtualWorld
Video
Advertising
VerticalCommunities
Pay
ment
Infrastructure
Podca
sting
Lea
rning
6 26 10 16 1 6 3 2 1 5 3 2 1 2 2 1 4 1 1 3 1 1# Companies
26 Gaming companies totalingover $17b in market cap
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Market Cap Ranking
0
1,000
2,000
3,000
4,000
5,000
6,000
Broad
WebAsiaInc.
UO
MOMedia,Inc
CornerWor
ldCorporation
UniserveCommunicationsCorp.
MobileDataCorp.
Betawav
eCorporation
BeyondC
ommerce,Inc.
DigitalPostInteractive,Inc.
En2GoInt
ernational,Inc.
Kiwibox.Com,Inc.
W
orlds.comInc.
KentInternationa
lHoldingsInc.
Spec
trumDNA,Inc.
RealValueEstates,Inc.
OrientedMedia
GroupBerhad
BrightThingsplc
SaharaMedia
Holdings,Inc.
SNAPInteractive,Inc.
LingoMed
iaCorporation
iseemediaInc.
VOIS,Inc.
MOK
O.mobiLimited
JumbuckEntertainmentLimited
IA
SEnergy,Inc.
InternetGroupSA
NorthgateTechnologiesLimited
WizzardSoftwareCorporation
AccelerizeNe
wMedia,Inc.
LookSmart,Ltd.
DolphinDig
italMedia,Inc.
Y
nkKoreaInc.
AsknetAG
NeXploreCorporation
Socialwise,Inc.
G
luMobile,Inc.
WebMe
diaBrandsInc
MultipliedMed
iaCorporation
Unilav
aCorporation
CyberplexInc.
G
eoSentricOyj
DigitalTown,Inc.
Q
uepasaCorp.
PNIDigitalMediaInc.
G
ravityCo.,Ltd
Sc
oreMediaInc.
PointsInternationalLtd.
FrogsterInteractiv
ePicturesAG
NgiGroupInc.
NeuLionIncorporated
SparkNetworks,Inc.
Moggle,Inc
YD
OnlineCorp.
AQIn
teractive,Inc.
H
anbitSoft,Inc.
PaidInc.
Tree.Com,Inc.
FluidMusicCanada,Inc.
DADASpA
Actoz
SoftCo.,Ltd.
Ga
meOnCoLtd.
TheS
treet.com,Inc.
WebzenInc.
G
igaMediaLtd.
The9Limited
VeltiPlc
MyriadGroupAG
XINGAG
OAORBCInform
ationSystems
Openwave
SystemsInc.
GamaniaDigitalEntertainmentCo.,
HUGHESTelematics,Inc.
NetDragon
WebSoft,Inc.
CDCCorp.
GungHoOnlineEntertainment,Inc.
infoGROUP,Inc.
SKCommunicationsCo.,Ltd.
RealNetworksInc.
S
hutterfly,Inc.
Unit
edOnline,Inc.
NEOWIZGam
esCorporation
V
alueClick,Inc.
KingsoftCorporationLimited
ChineseGamerInternational
Mixi,Inc.
TaleoCorp.
Changyo
u.comLimited
PerfectW
orldCo.,Ltd.
TheNewYorkTimesCompany
GiantInteractiveGroup,Inc.
Sohu.comInc.
Op
enTextCorp.
Gree,Inc.
IAC/InterActiveCorp.
AOL,Inc.
ShandaInteractiveEntertainmentLtd.
ModernTimes
GroupMtgAB
Netease.comInc.
Tencen
tHoldingsLtd.
Source: CapitalIQ
Tencents $37b market capdominates group
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Price Performance 1 week
Rising
39%Flat13%
Falling
48%
Price Momentum Negative momentum with 61% of
stocks falling or flat over past week
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Average Price Performance 1 Week, By Sector
18.5%
9.7%
6.6%
2.8% 2.4%1.1% 0.3% 0.1% 0.0%
-0.4% -0.6%
-2.1% -2.4% -2.5% -3.3% -3.5% -3.7%-5.4%
-7.2%
-11.2%-11.9%-12.9%-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
Media
Search
Video
Mobile
Vertical
Co
mmunities
Financial
Services
Diversified
Gaming
Learning
Enterprise
Co
llaboration
Marketing
InternetRetail
Infrastructure
Payment
Social
N
etworking
P
odcasting
Music
A
dvertising
S
MS/Voice
Vi
rtualWorld
Dating
# companies
Source: CapitalIQ
Media shows biggestgains
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Price Performance 1 Week
-60.0%
-40.0%
-20.0%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
BWB
A
OMED
IA
ST
VI
IE
E
TSXV:US
S
SHH
D
WDD
D
UNL
A
GLU
U
SPX
A
CHIN
.A
RBCI
DGL
P
UOM
O
PAY
D
CM:D
A
SOH
U
388
8
249
7
GIG
M
77
7
PWR
D
A052790
618
0
GTSM:3083
SFL
Y
FR
G
TSE:363
2
59005
7
O1BCWZ
E
AO
L
SCLW
NCT
Y
70
0
G
A
TSC
M
NTE
S
MYR
N
SND
A
VCL
K
TSX:FM
N
RNW
K
212
1
MK
B
OTE
X
TSXV:P
N
KIW
B
ASX:JM
B
BWA
V
GEO1
V
ETGI
RVL
U
CWR
L
DB:M0
C
TSX:C
X
TSXV:L
M
TSXV:MM
C
VE
L
VO
IS
IUS
A
KNT
H
TRE
E
XTRA:A5A
LO
V
CYO
U
WSE:IG
R
AIM:BG
T
LOO
K
HUT
C
A095660
383
8
A047080
WEB
M
MTG
B
IACI
A023770
NXP
C
TLE
O
MBYL
NY
T
UNT
D
TSX:PT
S
TSX:NL
N
TSX:SC
R
ACLZ
QPS
A
GRV
Y
KOSE:A069080
A066270
A052770
381
2
DPD
M
376
5
OPW
V
DGTW
IASC
.A
BYO
C
Source: CapitalIQ
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Price Performance (Top 10)
1 Month
0%
20%
40%
60%
80%
100%
120%
140%
160%
IASEnergy,
Inc.
Beyond
Commerce,
Inc.
DigitalTown,
Inc.
GameOn
CoLtd.
Dolphin
Digital
Media,Inc.
Internet
GroupSA
HanbitSoft,
Inc.
Quepasa
Corp.
MobileData
Corp.
Openwave
Systems
Inc.
3 Month
0%
500%
1000%
1500%
2000%
2500%
3000%
3500%
OAORBC
Information
Systems
IASEnergy,
Inc.
Beyond
Commerce,
Inc.
Unilava
Corporation
SNAP
Interactive,Inc.
NgiGroupInc.
AQInteractive,
Inc.
TheStreet.com,
Inc.
Worlds.com
Inc.
QuepasaCorp.
6 Month
0%
500%
1000%
1500%
2000%
2500%
3000%
OAORBC
Information
Systems
AQInteractive,
Inc.
QuepasaCorp.
OrientedMedia
GroupBerhad
SNAP
Interactive,Inc.
VOIS,Inc.
NgiGroupInc.
Betawave
Corporation
SK
Communications
Co.,Ltd.
VeltiPlc
1 Year
0%
1000%
2000%
3000%
4000%
5000%
6000%
OAORBC
Information
Systems
Quepasa
Corp.
DigitalPost
Interactive,
Inc.
FluidMusic
Canada,
Inc.AQ
Interactive,
Inc.
VOIS,Inc.
Openwave
Systems
Inc.
VeltiPlc
Tencent
Holdings
Ltd.
PaidInc.
Source: CapitalIQ
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Price Performance (Bottom 10)
1 Week
-60.0%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
SpectrumDNA,
Inc.
GluMobile,Inc.
Unilava
Corporation
Worlds.comInc.
SaharaMedia
Holdings,Inc.
Uniserve
Communications
Corp.
iseemediaInc.
SNAP
Interactive,Inc.
OrientedMedia
GroupBerhad
BroadWebAsia
Inc.
1 Month
-60.0%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
Worlds.comInc.
CyberplexInc.
iseemediaInc.
UOMOMedia,
Inc
SpectrumDNA,
Inc.
SaharaMedia
Holdings,Inc.
Uniserve
Communications
Corp.
BroadWebAsia
Inc.
En2Go
International,Inc.
CornerWorld
Corporation
6 Month
-100.0%
-90.0%
-80.0%
-70.0%
-60.0%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
DADASpA
GigaMediaLtd.
Wizzard
Software
Corporation
CyberplexInc.
Northgate
Technologies
Limited
CornerWorld
Corporation
En2Go
International,
Inc.
UOMOMedia,
Inc
BroadWebAsia
Inc.
SaharaMedia
Holdings,Inc.
1 Year
-120.0%-100.0%
-80.0%
-60.0%
-40.0%
-20.0%
0.0%
Wizzard
Software
Corporation
GigaMediaLtd.
Northgate
Technologies
Limited
MobileData
Corp.
UOMOMedia,
Inc
CornerWorld
Corporation
En2Go
International,
Inc.
SaharaMedia
Holdings,Inc.
Beyond
Commerce,
Inc.
BroadWebAsia
Inc.
Source: CapitalIQ
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Capital Market Activity (Financing, M&A)
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Financing Momentum
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Oct-04
Dec-04
Feb-05
Apr-05
Jun-05
Aug-05
Oct-05
Dec-05
Feb-06
Apr-06
Jun-06
Aug-06
Oct-06
Dec-06
Feb-07
Apr-07
Jun-07
Aug-07
Oct-07
Dec-07
Feb-08
Apr-08
Jun-08
Aug-08
Oct-08
Dec-08
Feb-09
Apr-09
Jun-09
Aug-09
Oct-09
Dec-09
Feb-10
Apr-10
(US$m
)
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
(US$m
)
Total (LTM) Average Size (LTM)
Sharp rise drivenby large DSTtransactions
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Financing activity Current MonthMonth Company Name Country Sector Angel/Seed PIPE Series A Series B Series C Series D Grand Total
Apr-10 Digital Sky Technologie s Russia Diversif ied 300.0 300.0
Groupon USA Social Commerce 135.0 135.0
Vidyo USA Video 25.0 25.0
LendingClub USA Financial Services 24.5 24.5
MokaFive USA Enterprise 21.0 21.0
BlackArrow USA Advertising 20.0 20.0
Xobni USA Social Netw orks 16.2 16.2
Box.net USA Collaboration 15.0 15.0
Prosper.com USA Financial Services 14.6 14.6
Knewton USA Online Learning 12.5 12.5
Brightcove USA Video 12.0 12.0
EdgeCast CDN USA Media 10.0 10.0
Tynt Canada Infrastructure 8.0 8.0
PubMatic USA Advertising 7.5 7.5
Searchandise Comm erce USA Advertising 7.0 7.0
Stitcher USA Media 6.0 6.0
Cramster USA Vertical Communities 6.0 6.0
quirky USA Social Netw orks 6.0 6.0
TellApart USA Analytics 4.8 4.8
Daily Grommet USA Social Commerce 3.4 3.4
gdgt USA Vertical Communities 3.2 3.2
TweetPhoto USA Micromedia 2.6 2.6
Assistly USA Enterprise 2.2 2.2
Spredfast USA Analytics 1.6 1.6
FreshPlanet USA Gaming 1.5 1.5
NearVerse USA Location-based SNS 1.0 1.0
ZoomSafer USA Mobile 1.0 1.0
Kontagent USA Analytics 1.0 1.0
DIYSEO USA Search 1.0 1.0
MyLikes USA Advertising 0.6 0.6
Plyce France Location-based SNS 0.4 0.4
Apr-10 Total 4.0 300.0 23.1 30.2 286.7 26.6 670.5
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Financing activity Current Month, By Sector
Diversified3%
Social
Commerce
6%
Media
9%
Financial
Services
6%
Video
6%
Advertising
12%
Enterprise6%Social
Networks
6%
Collaboration
3%
Online
Learning
3%
VerticalCommunities
6%
Infrastructure
3%
Analytics
9%
Gaming
6%
Micromedia
3%
Location-
based SNS
6%
Search
3%
Mobile3%
Travel
3%
Other
29%
Diversified
38%
Social
Commerce
18%
Media
15%
# Deals $ Raised
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Financing Activity last three months
12.8
4.75.5
6.8
8.9
5.7
10.2
12.5
9.18.2
5.4
21.6
5.8
0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
800.0
Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10
(US$m)
0.0
5.0
10.0
15.0
20.0
25.0
(US$m)
Total Average*May-09 includes $200m FB investment
Dec-09 includes $180m Zynga investment
Apr-10 includes $300m DST investment
$370mm excl DST,average $13.2m
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Capital Market Activity Ranking by Sector, last three months
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
Diversified
M
edia
Video
Social
Comm
erce
Advertising
Search
Ga
ming
So
cial
Networks
Financial
Services
M
obile
MobileAd
Crowdso
urced
Conte
nt
Enterprise
Analytics
Online
Lea
rning
Internet
Retail
Vertical
Commu
nities
Music
Mobile
Payment
Collabo
ration
Loca
tion-
based
SNS
VirtualWorld
Microblog
Infrastructure
W
idget
Travel
SMS/Voice
Online
Calendar
Blog
Microm
edia
OnlineD
ating
Aggreg
ation
1 6 9 3 16 8 7 9 7 6 2 4 2 5 2 2 5 2 1 1 4 3 2 3 1 3 1 1 1 1 1 1
(US$m)
# companies
Advertising has mostdeals in last 3 months
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Top 10 Deals (2010 YTD)
300.0
135.0
25.0 24.5 21.0 20.0 16.2 15.0 14.6 12.5
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
DigitalSky
Technologies
Groupon
Vidyo
LendingClub
MokaFive
BlackArrow
Xobni
Box.net
Prosper.com
Knewton
100
80
50
36.533
21 2018
8
3
0
20
40
60
80
100
120
Ankeena
Networks
Mochi
Media
Aardvark S tud ioNow Saf-T-Net C&C
Media
Red 5
Studios,Inc.
Multicast
Media
AdMarvel NuConomy
Financings Acquisitions
DST involved in 2largest deals YTD
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Upcoming events/earnings
Company Date Time Quarter Conf Call Details
Modern Times Group Mtg AB (OM:MTG B) 20-Apr-10 3:00 PM (CET) Q1/10 N/A
Changyou.com Limited (NasdaqGS:CYOU) 26-Apr-10 7:00 AM (EDT) Q1/10 852-3002-1672
Sohu.com Inc. (NasdaqGS:SOHU) 26-Apr-10 8:30 AM (EDT) Q1/10 1-877-941-6009
Shutterf ly, Inc. (NasdaqGS:SFLY) 28-Apr-10 2:00 PM (PDT) Q1/10 970-315-0490
Openw ave Systems Inc. (NasdaqGS:OPWV) 28-Apr-10 2:00 PM (PDT) Q3/10 877-941-1427
IAC/InterActiveCorp. (NasdaqGS:IACI) 28-Apr-10 11:00 a.m. EST Q1/10 http://w w w .iac.com/Investors
Open Text Corp. (NasdaqGS:OTEX) 29-Apr-10 5:00 PM (EDT) Q3/10 800-814-4860
Tree.Com, Inc. (NasdaqGM:TREE) 30-Apr-10 11:00 a.m. EST Q1/10 866-564-7440
Source: CapitalIQ
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Public Company Listing cont.
Company Name Ticker Exchange
Trading
Currency HQ
Current
Price
US$ Market
Cap (mm) Employees
Socialwise, Inc. SCLW OTCBB USD United States 0.58 28.1 NA
Sohu.com Inc. SOHU NasdaqGS USD China 49.76 1,879.3 3,997
Spark Networks, Inc. LOV AM EX USD United States 3.76 77.4 NA
SpectrumDNA, Inc. SPXA OTCBB USD United States 0.10 6.5 7
Taleo Corp. TLEO NasdaqGM USD United States 26.87 1,065.6 916
Tencent Ho ldings Ltd. 700 SEHK HKD China 157.30 37,060.2 7,515
The New York Times Company NYT NYSE USD United States 12.11 1,762.6 7,665
The9 Limited NCTY NasdaqGS USD China 6.84 174.5 1,626
TheStreet.com, Inc. TSCM NasdaqGM USD United States 3.61 113.9 NA
Tree.Com, Inc. TREE NasdaqGM USD United States 9.14 100.6 700
Unilava Corporation UNLA OTCBB USD United States 0.44 44.0 39
Uniserve Communications Corp. TSXV:USS TSXV CAD Canada 0.08 1.9 NA
United Online, Inc. UNTD NasdaqGS USD United States 8.11 702.0 1,699
UOM O M edia, Inc UOM O OTCBB USD Canada 0.02 1.7 NA
ValueClick, Inc. VCLK NasdaqGS USD United States 10.09 820.5 1,086Velti P lc VEL AIM GBP United Kingdom 3.11 178.4 450
VOIS, Inc. VOIS OTCBB USD United States 0.01 9.0 2
WebM ediaBrands Inc WEBM NasdaqGS USD United States 1.00 37.4 NA
Webzen Inc. KOSE:A069080 KOSE KRW South Korea 13,450 142.6 NA
Wizzard Software Corporation WZE AM EX USD United States 0.24 15.9 NA
Worlds.com Inc. WDDD OTCBB USD United States 0.10 5.4 1
XING AG O1BC XTRA EUR Germany 27.39 191.5 NA
YD Online Corp. A052770 KOSE KRW South Korea 6,240 83.8 NA
Ynk Korea Inc. A023770 KOSE KRW South Korea 3,230 23.0 NA
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Disclaimer
RELEVANT DISCLOSURES APPLICABLE TO: NONE
1. None applicable.
ANALYST CERTIFICATION
Each analyst of Mackie Research Capital Corporation whose name appears in this reporthereby certifies that (i) the recommendations and opinions expressed in this researchreport accurately reflect the analysts personal views and (ii) no part of the researchanalysts compensation was or will be directly or indirectly related to the specificconclusions 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 Corporations Rating System, the distribution of our research to clients and the percentage of recommendations which are in each of our r ating categoriesis 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 CapitalCorporation 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 mentionedherein. 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 CapitalU.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 andExchange Commission).
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