8/14/2019 09-12-15 Web 2.0 Weekly

1/20

SOFTWARE & SERVICES 15 DECEMBER 2009

W E B 2 . O W E E K LYDAVID SHORE, CFA, MBA 416.860

david.shore@researchcapitaDamian Wojcichowsky, CFA (Associate), 416.8

GEO-LOCATION-BASED BECOMING A BIG MONEY PHRASE

GOWALLA VALUATION PUSHES UNIQUE VISITOR BOUNDARYTwo transactions this week highlight varying perspectives on user-driven Web 2.0 valuations the Series B financingof geo-location-based, gaming-oriented social network Gowalla; and the acquisition of Friendster, the third largestsocial network by number of users, by Malaysian payments company, MOL Global. Some of the highlights include:

Gowalla sets a new high: Gowalla raised $8.5 million in a Series B financing this past week. With just 50,000 userson the location-based social network (driven by the companys Facebook game application, PackRat, launched in2008), the most recent raise valued the company at $28.4 million, implying a per unique visitor value of $568 wellabove the previous high we recorded in May 2008 for Plaxo at $200/user.

Geo-location services are hot: Gowallas $568 UV valuation, we believe, is largely based on the companys

positioning in the very popular geo-location application sector. Some of the other metrics we have collected in thespace include Foursquare valued in September at $40/user and Poynt (by Multiplied Media, a publicly tradedcompany) currently valued at $16/user. Our expectation is that UV valuations in this space will increase as morecompanies execute funding raises.

There is a big difference between first and third place: Friendster s user base (estimated at 50-150 million users,depending on the source) ranks it third among social networking sites Facebook leads the way with 300+ millionusers. However, boasting millions of users does not guarantee a windfall valuation as Friendster s $0.67/user to$2.00/user (depending on which total user number is used) valuation illustrates. We postulate that building a criticalmass number of users only helps valuation if your application is a leader in its category and therefore represents thede facto go to option for users as is the case with Facebook, which was last valued at $32/user.

Estimated Value per Unique Visitor

$568

$200

$113 $88

$48 $42 $40 $32 $29 $29 $22 $20 $16 $16 $7 $7 $5 $1$-

$100

$200

$300

$400

$500

$600

Gowalla Plaxo M int.com Linkedin FriendFeed Twitter Foursquare Facebook Club Penguin Twitter Bebo PeopleMedia

MM C(Poynt)

Pag eo nce Skyp e Playf ish St umb leUp on F ri end st er

Dec-09 M ay-08 Sep-09 Oct-08 Aug-09 Sep-09 Sep-09 M ay-09 Aug-07 Feb-09 M ar-08 Jul-09 Dec-09 Dec-09 Sep-09 Nov-09 May-09 Dec-09

( $ )

This report has been created by Analysts that are employed by Research Capital Corporation, a Canadian Investment Dealer.For further disclosures, please see last page of this report.

www.research cap i t a l . co mTo ro n to 4 1 6 .8 6 0 .7 6 0 0 Mo n t rea l 5 1 4 .3 9 9 .1 5 0 0 Van co u v er 6 0 4 .6 6 2 .1 8 0 0 Ca lg ary 4 0 3 .2 6 5 .7 4 0 0 Reg in a 3 0 6 .5 6 6 .7 5 5 0

8/14/2019 09-12-15 Web 2.0 Weekly

2/20

Pag

HE WEB 2 .0 UNIVERSEEighty-nine public Web 2.0 companies: Our Web 2.0 universe contains 89 companies, with a combined market cap ofapproximately $74 billion (Figure 1). The median market cap for the group is $40 million, with average trailing revenue of$166 million (median $54 million). The companies are also generally profitable with a median EBITDA margin of 11.1%.On a valuation basis, the overall average is 5.9x trailing revenue (median 1.9x) and 10.2x trailing EBITDA (median 7.6x).

Twenty of the companies have more than 500 employees.Comparable Company Analysis > Web 2.0

ompany Name LTM as of Ticker E xchangeTrading

C ur ren cy H QCurrent

PriceUSD Market

Cap ($m)USD LTM Total

Rev ($m)USD LTM Total

EBITDA ($m)EBITDA

%TEV/LTMRevenue

TEV/LTME BITDA E mpl

ccelerize New Media , Inc. 9/30/2009 AC LZ OT CB B U S D United S ta tes 0.65 18.7 4.1 (1 .5) -36.5% 5.7x - ctoz S oft C o. , L td. 9/30/2009 A052790 K OS E K R W S outh K orea 21,050 1 52.9 115.9 25.7 22.2% 1.0x 4.4x Q Interactive, Inc. 9/30/2009 3838 T S E J P Y J a pan 40,500 24.6 74.0 3 .8 5.1% 0.0x 0.5x s knet AG 9/30/2009 XT R A:A5A XT R A E U R G ermany 4 26.0 103.6 (2 .4) NM 12.6x - s sociated Media Holdings Inc. 6/30/2007 AS MH OT CP K U S D United S ta tes 0.01 0.4 0.1 (2 .3) NM 12.6x - igs tring C orp. 9/30/2009 B S G C OT CB B U S D United S ta tes 0.02 1.3 0.1 (1 .0) NM 37.4x - eta wave C orporation 9/30/2009 B W AV OT CB B U S D United S ta tes 0.06 1.8 8.4 (14.3) NM - - eyond C ommerce, Inc . 9/30/2009 B Y O C OT CB B U S D United S ta tes 0.04 2.0 13.5 (12.4) -91.9% 1.0x - right Things plc 3/31/2009 AIM:B G T AIM G B P United K ingdom 0.01 5.3 0.0 (2 .7) NM - - roa dW ebAs ia Inc. 9/30/2008 B W B A OT CP K U S D United S ta tes 0.05 4.2 0.0 (4 .6) NM - - DC C orp. 9/30/2009 C HIN.A Nas daqG S U S D Hong K ong 2.39 253.3 334.2 20.0 6.0% 0.7x 11.1x hangyou.com Limited 9/30/2009 C Y OU Nas daqG S U S D China 31.47 1,730.9 255.3 157.4 61.7% 5.6x 9.0x hina G ateway Corporation 9/30/2008 C G W Y OT CP K U S D United S ta tes 0.01 0.2 6.7 (6 .6) -98.9% 0.0x - hines e G amer Interna tional 9/30/2009 G T S M:3083 G T S M T W D T aiwa n 431 1 ,117.8 68.3 39.6 58.0% 15.2x 26.2x LIC K E R Inc. 5/31/2009 C LK Z OT CB B U S D United S ta tes 0.01 0.4 2.5 (1 .2) -45.8% 0.2x - ornerW orld C orporation 7/31/2009 C W R L OT CB B U S D United S ta tes 0.03 2.9 6.8 NM NM 1.9x - yberplex Inc. 9/30/2009 T S X:C X T S X C AD Canada 1 74.8 105.6 11.7 11.1% 0.5x 4.7x ADA S pA 6/30/2009 C M:DA C M E U R Italy 6.02 142.8 241.9 31.8 13.1% 0.8x 6.0x XN Holdings B hd 8/31/2009 DXN K LS E MY R Ma lays ia 0.57 37.2 77.3 (84.0) NM 0.6x - ibz International, Inc. NA DIB Z OT CP K U S D United S ta tes 0.01 0.0 NA NM NM - - igita lP os t Interactive, Inc. 9/30/2009 DG LP OT CB B U S D United S ta tes 0.05 4.6 1.2 (0 .9) -73.8% 5.7x - igita lT own, Inc. 8/31/2009 DG T W OT CB B U S D United S ta tes 1.40 38.3 0.0 (1 .8) NM - - olphin Digital Media , Inc. 9/30/2009 DP DM OT CB B U S D United S ta tes 0.28 15.9 0.3 (4 .6) NM - - olith Co. L td. 12/31/2008 A041060 K OS E K R W S outh K orea 565 69.9 15.4 (3 .6) -23.6% 4.7x - xtens ions , Inc . 9/30/2009 E XT I OT CP K U S D United S ta tes 0.45 20.0 0.0 NM NM - - luid Mus ic Ca nada , Inc. 9/30/2009 T S X:F MN T S X C AD United S ta tes 1.70 98.6 5.6 (3 .0) -54.0% 17.0x - rogs ter Interactive P ictures AG 6/30/2009 F R G XT R A E U R G ermany 18.00 67.5 9.6 (4 .5) -47.0% 6.9x - ama nia Digita l E nterta inment C o., Ltd. 9/30/2009 6180 G T S M T W D T aiwa n 49.90 236.1 151.2 24.9 16.5% 1.4x 8.5x ameOn Co Ltd. 9/30/2009 3812 T S E J P Y J a pan 66,500 71.9 79.3 18.6 23.5% - - eoS entric Oyj 9/30/2009 G E O1V HLS E E U R Finland 0.05 65.8 4.7 (19.0) NM 14.8x - iant Interactive G roup, Inc . 9/30/2009 G A NY S E U S D China 7 1,691.7 202.2 137.9 68.2% - - iga Media L td. 3/31/2009 G IG M Nas daqG S U S D T aiwa n 3.67 200.1 183.6 NM NM 0.7x - ravity Co., L td 9/30/2009 G R V Y Nas daqG M U S D S outh K orea 1.42 39.5 49.9 17.7 35.4% - - ree, Inc. 9/30/2009 T S E :3632 T S E J P Y J a pan 4 ,830 2 ,418.2 210.3 122.2 58.1% 11.0x 19.0x ungHo O nline E nterta inment, Inc . 9/30/2009 3765 OS E J P Y J a pan 152,500 1 95.4 120.7 26.9 22.3% 1.3x 5.8x anbitS oft, Inc . 9/30/2009 A047080 K OS E K R W S outh K orea 3 ,910 71.7 57.6 (0 .3) -0 .6% 1.0x -

AC/InterActiveC orp. 9/30/2009 IAC I Nas daqG S U S D United S ta tes 19.30 2,547.0 1,359.6 82.4 6.1% 0.7x 11.0x eemedia Inc. 9/30/2009 IE E T S XV C AD Canada 0.17 8.0 1.8 (4 .1) NM 4.6x -

umbuck E nterta inment Limited 6/30/2009 AS X:J MB AS X AU D Aus tralia 0.32 13.6 16.7 7 .2 42.8% 0.4x 1.0x AB Dis tribution Inc. 6/30/2009 T S X:K AB T S X C AD Canada 0 0.6 67.9 4 .0 5.8% - - ings oft Co. L td. 9/30/2009 3888 S E HK HK D China 5 739.7 143.4 57.6 40.2% 4.7x 11.7x ingo Media Corporation 9/30/2009 T S XV :LM T S XV C AD Canada 0.90 10.3 1.3 (2 .3) NM 7.6x - iveW orld Inc. 9/30/2009 L V W D OT CP K U S D United S ta tes 0.03 1.0 10.4 0 .4 4.1% - - ookS mart, Ltd. 9/30/2009 L OO K Nas daqG M U S D United S ta tes 1.07 18.3 54.0 (4 .5) -8 .4% - - agnitude Information S ystems Inc. 9/30/2009 MAG Y OT CB B U S D United S ta tes 0.02 8.9 0.1 (2 .3) NM - - ixi, Inc. 9/30/2009 2121 T S E J P Y J a pan 807000.00 1,390.7 139.6 46.1 33.0% 9.0x 27.3x

odern T imes G roup Mtg AB 9/30/2009 MT G B OM S E K S weden 328.60 3,109.7 2,002.6 282.9 14.1% 1.8x 12.9x O K O.mobi L imited 6/30/2009 MK B AS X AU D Aus tralia 0.16 14.8 0.7 (2 .4) NM 20.0x - yriad G roup AG 6/30/2009 MY R N S W X C HF S witzerland 4.85 208.0 63.0 3 .4 5.4% 3.2x - E OW IZ G ames Corporation 12/31/2008 A095660 K OS E K R W S outh K orea 43600.00 770.2 207.3 55.7 26.8% 3.7x 13.7x etDragon W ebS oft, Inc. 9/30/2009 777 S E HK HK D China 4 276.9 91.4 27.8 30.4% 1.4x 4.4x eteas e.com Inc. 9/30/2009 NT E S Nas daqG S U S D China 37.02 4,791.4 482.9 291.8 60.4% - - 3euLion Incorporated 9/30/2009 T S X:NLN T S X C AD Canada 0.70 74.9 24.9 (16.1) -64.5% 2.5x - eXplore C orporation 6/30/2009 NXP C OT CP K U S D United S ta tes 1 35.1 1.7 (13.3) NM 23.0x - gi G roup Inc. 9/30/2009 2497 T S E J P Y J a pan 23570.00 32.6 81.7 3 .2 3.9% - - orthgate T echnologies L imited 9/30/2009 590057 B S E INR India 28.60 20.8 46.4 (49.8) NM 0.4x - pen T ext C orp. 9/30/2009 O T E X Nas daqG S U S D Canada 38.25 2,156.6 814.5 211.1 25.9% 2.7x 10.6x penwave S ys tems Inc. 9/30/2009 O P W V Nas daqG S U S D United S ta tes 2.26 188.8 190.5 6 .2 3.3% 0.4x 13.5x erfect W orld Co. , L td. 9/30/2009 P W R D Nas daqG S U S D China 43.10 2,144.5 286.1 157.4 55.0% 0.5x 0.8x NI Digita l Media Inc. 6/30/2009 T S XV :P N T S XV C AD Canada 1.85 58.2 21.0 2 .3 11.0% 2.7x 24.3x uepa sa Corp. 9/30/2009 Q P S A OT CB B U S D United S ta tes 2 29.9 0.2 (9 .8) NM - - AO R B C Information S ystems 12/31/2007 R B C I R T S U S D R us sia 1.60 222.0 157.4 20.6 13.1% 0.0x 0.4x handa Interactive E nterta inment Ltd. 9/30/2009 S NDA Nas daqG S U S D China 52.57 3,535.6 694.3 317.2 45.7% - - 3hutterfly, Inc. 9/30/2009 S FL Y Nas daqG S U S D United S ta tes 17.54 450.3 223.1 27.0 12.1% 1.5x 12.5x K Communications C o., Ltd. 12/31/2008 A066270 K OS E K R W S outh K orea 10700.00 375.5 192.7 12.5 6.5% 1.9x 30.0x NAP Interactive, Inc . 9/30/2009 S T V I OT CB B U S D United S ta tes 0 2.2 3.4 0 .5 15.6% 0.2x 1.2x NM G lobal Holdings 9/30/2008 S NMN OT CP K U S D United S ta tes 0.00 0.0 2.0 (0 .7) -34.8% 1.1x - ocia l Media V entures Inc. 12/31/2008 S MV I OT CP K U S D United S ta tes 0 0.0 0.1 (0 .1) -60.6% 4.5x - ocia lwis e, Inc . 6/30/2009 S C LW OT CB B U S D United S ta tes 0.50 23.4 0.0 (5 .6) NM - - ohu.com Inc. 9/30/2009 S O HU Nas daqG S U S D China 53.24 2,047.5 501.0 218.4 43.6% 3.0x 6.9x park Networks , Inc. 9/30/2009 L OV AME X U S D United S ta tes 3 51.5 47.5 10.0 21.0% 1.0x 4.8x pectrumDNA, Inc. 9/30/2009 S P XA OT CB B U S D United S ta tes 0 6.8 0.1 (2 .5) NM 48.7x -

T encent Holdings L td. 9/30/2009 700 S E HK HK D China 160 37,428.2 1,588.4 811.3 51.1% 25.9x -

T he P arent C ompany 8/2/2008 K IDS .Q OT CP K U S D United S ta tes 0.01 0.2 112.0 (13.5) -12.0% 0.2x - T he9 Limited 12/31/2008 N C T Y Nas daqG S U S D China 7.14 179.3 250.6 85.5 34.1% - - T heS treet. com, Inc. 3/31/2009 T S C M Nas daqG M U S D United S ta tes 2.22 67.9 67.0 1 .9 2.9% 0.1x 1.8x

T ree.Com, Inc. 9/30/2009 T R E E Nas daqG M U S D United S ta tes 8.94 97.5 217.1 9 .7 4.5% 0.3x 7.4x nis erve C ommunications C orp. 8/31/2009 T S XV :U S S T S XV C AD Canada 0.04 0.8 16.1 0 .1 0.9% 0.3x 36.4x nited Online Inc. 9/30/2009 U NT D Nas daqG S U S D United S ta tes 6.97 589.6 996.8 212.9 21.4% 0.8x 4.0x OMO Media , Inc 7/31/2009 U OMO OT CB B U S D Canada 0 4.3 0.8 (0 .4) -54.2% 6.0x - alueClick Inc. 9/30/2009 V C LK Nas daqG S U S D United S ta tes 10 842.1 545.7 130.8 24.0% 1.3x 5.2x OIS , Inc. 6/30/2009 V O IS OT CB B U S D United S ta tes 0 9.1 0.0 (1 .0) NM - -

W ebzen Inc. 9/30/2009 W ZE N Nas daqG M U S D S outh K orea 3.00 35.6 23.0 2 .5 11.0% - - W izzard S oftware C orporation 9/30/2009 W ZE AME X U S D United S ta tes 0.40 21.4 5.2 (3 .9) -76.4% 4.4x - W orlds .com Inc. 9/30/2009 W DDD OT CB B U S D United S ta tes 0.05 2.4 0.1 (0 .6) NM 33.2x - W ynds torm Corporation NA W Y ND OT CP K U S D United S ta tes 0.04 0.7 NA NM NM - -

ING AG 9/30/2009 O 1B C XT R A E U R G ermany 32.41 250.2 62.5 16.9 27.0% 3.1x 11.5x D Online C orp. 12/31/2007 A052770 K OS E K R W S outh K orea 6970.00 87.6 57.4 12.4 21.6% 1.6x 7.6x nk K orea Inc. 12/31/2008 A023770 K OS E K R W S outh K orea 3570.00 16.0 11.9 1 .3 10.5% - -

igh 37,428.2 2,002.6 811.3 68.2% 48.7x 36.4x 6ow 0.0 0.0 -84.0 -98.9% - - verage 830.3 165.5 41.3 5.6% 5.9x 10.2x 906edian 39.5 54.0 2.1 11.1% 1.9x 7.6x 2

igure 1. Web 2.0 Universe Summary ource. Capital IQ

8/14/2019 09-12-15 Web 2.0 Weekly

3/20

Pag

A P I TA L M A R K ETS A C TI V I TY ( M & A A N D F I N A N C I N G )ransaction volumes and values keep pace in second week of December: Total transaction value in the Web 2.0niverse for December-to-date is $132.4 million (compared with $68.8 million at this time last week). The number ofinancings stands at 13, avera ging $10.2 million each (vs. seven financings at an average $9.8 million per deal at this timeast week). In comparison, total capital raised in November was $203.4 million, averaging $11.3 million (18 deals); October

was $171.3 million, averaging $6.3 million (27 deals); and September was $232.8 million, averaging $9.0 million (26eals).

Financing Activity Last Twelve Months

6.5

7.16.6

6.2

14.2

4.9

5.6

7.6

9.0

6.3

11.3

10.2

6.7

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09

( U S $ m )

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

Total Average*May-09 includes $200m FB investment

igure 2. Financings, Last Twelve Months ource. Company reports

8/14/2019 09-12-15 Web 2.0 Weekly

4/20

Pag

Deal round-up for December: The large deal highlights for the month include:

Friendster the third largest social networking site, behind Facebook and MySpace was acqui red by MOL Globalfor at least $100 million.

Groupon a social commerce site that allows members to participate in one-time only deep discounted deals raised $30 million in a second institutional financing.

Zoosk online social dating web site raised $30 million in its fourth financing.

Lala streaming music site was acquired by Apple for $17 million (or $3 million on an enterprise value basis).

gWallet developer of virtual currency technology for monetizing brands, publishing, and social media platforms raised $12.5 million in a first round financing.

All other deals in the month were in the amount of $10 million or less. For additional details on financings, see Figures 23nd 24 (at end of note).

Financing & M/A Summary - Last Three Months

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

200.0

P l a y F

i s h

F r i e n d s t e r

R o c

k Y o u

K u 6

P l a y d o m

G r o u p o n

Z o o s k

D a i

l y M o t

i o n

S e z m

i

P h o e n

i x N e w

M o t

l e y

F o o

l

Y e x

t

P o p

C a p

G a m e s

E n g

i n e

Y a r

d L a l a

E c a s t

N e t w o r

k

M i l l e n n i a l

M e d

i a

H u b

S p o

t

Z y n g a

Q u n a r . c

o m

g W a l

l e t

J i v e

S o f

t w a r e

E v e r n o t e

O o y a l a

S p i g i

t

F e e

d R o o m

M o v

i k N e t w o r

k s

S c a n S c o u t

G o w a l

l a

G o g

i i

C u b e T r e e

w o o g a

B o x . n

e t

S e e

k i n g

A l p h a

A v i a r y

P a g e o n c e

G e n

i u s . c o m

R e a

l i t y

M o b

i l e B i z o

A l i c e . c o m

E v e n t

b r i t e

W a t e r c o o l e r

N i v a l

N e t w o r

k

P l a c e c a s t

A p p

N e x u s

V d o p i a

A l t r u i

k

S m a a

t o

T o n c h

i d o t

S o m e t r i c s

S c o u t

L a b s

A m

i e S t r e e

t

J a n R a i n

C r e

d i t K a r m a

C l o u d

E n g

i n e s

V i V u

S t o c k

T w

i t s

R o c

k e t F u e

l

F i z z b a c

k

O v e r t o n e

B l e k k o

G o d e n g o

P l a y f

i r e

T e c

h n o r a t

i

S i m p l e G e o

O n e

h u b

D a t a S y n c

H o t

P o t a t o

D a i

l y B o o

t h

I m e e m

P r o s p e r . c

o m

L i n k e d e x

S t a t u s N e t

I n g B o o

C h a n g o

P B w o r

k s

A d f o n

i c

S c o o p

l e r

L i s t

i a

V E V O

A u r o r a

F e i n t

S o c

i a l M e d

i a

J o o s

t

( U S $ m ) Dec

NovOct-

igure 3. Capital Market Activity, Last Three Months ource. Company reports

8/14/2019 09-12-15 Web 2.0 Weekly

5/20

Pag

Broad-based sector financing: Video, Gaming, Advertising, and Analytics experienced the most financing activity amongour Web 2.0 sector categories in the past three months by number of transactions (seven each). Social Networks andCollaboration remain strong with six deals each in the past quarter. Infrastructure and Search round out the top threepositions at four deals each over the past three months (Figure 4). The $400 million acquisition of Playfish skews theVirtual Worlds segment to the highest total.

Capital Market Activity by Sector - Last Three Months

400.0 144.1 120.3 106.9 57.0 54.0 43.8 39.9 39.8 37.5 30.0 28.7 21.1 18.0 16.7 15.0 12.5 10.0 7.3 7.0 6.4 4.0 3.9 2.2 1.2 0.70.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

200.0

V i r t u a

l W o r

l d

S o c

i a l N e t w o r

k s

V i d e o

G a m

i n g

M e d

i a

W i d g e

t

A d v e r

t i s i n g

S o c

i a l C o m m e r c e

I n f r a s

t r u c

t u r e

C o l

l a b o r a

t i o n

S e a r c

h

A n a

l y t i c s

M o b

i l e A d

M u s

i c

M o b

i l e

T r a v e

l

V i r t u a

l G o o

d s

D o c u m e n

t s

A g g r e g a

t i o n

C r o w

d s o u r c e d

C o n

t e n t

C l a s s

i f i e d

F i n a n c i a l

S e r v i c e s

M i c r o

b l o g

P u b

l i s h i n g

E n t e r p r

i s e

1 6 7 7 3 2 7 3 4 6 4 7 3 2 2 1 1 1 2 1 2 3 2 1 1 1

( U S $ m )

# companies

igure 4. Capital Market Activity, by Sector, Last Three Months ource. Company reports

8/14/2019 09-12-15 Web 2.0 Weekly

6/20

Pag

A P I TA L M A R K ETS A C TI V I TY ( P R I C E P ER F O R M A N CE)Web 2.0 index continues to outpace NASDAQ recovery: Our Web 2.0 index (market-cap weighted) essentially mirroredthe performance of the NASDAQ composite index from mid-2008 until Q1/09. Since then, the index has diverged in a muchstronger recovery relative to the NASDAQ index (Figure 5).

Web 2.0 Index Price Performance

0

50

100

150

200

250

1 2 / 1 5 / 2 0 0 8

1 2 / 2 9 / 2 0 0 8

1 / 1 2 / 2 0 0 9

1 / 2 6 / 2 0 0 9

2 / 9 / 2 0 0 9

2 / 2 3 / 2 0 0 9

3 / 9 / 2 0 0 9

3 / 2 3 / 2 0 0 9

4 / 6 / 2 0 0 9

4 / 2 0 / 2 0 0 9

5 / 4 / 2 0 0 9

5 / 1 8 / 2 0 0 9

6 / 1 / 2 0 0 9

6 / 1 5 / 2 0 0 9

6 / 2 9 / 2 0 0 9

7 / 1 3 / 2 0 0 9

7 / 2 7 / 2 0 0 9

8 / 1 0 / 2 0 0 9

8 / 2 4 / 2 0 0 9

9 / 7 / 2 0 0 9

9 / 2 1 / 2 0 0 9

1 0 / 5 / 2 0 0 9

1 0 / 1 9 / 2 0 0 9

1 1 / 2 / 2 0 0 9

1 1 / 1 6 / 2 0 0 9

1 1 / 3 0 / 2 0 0 9

Index: Web 2.0 (Market Cap) ^COMP - Share Pricing

igure 5. Web 2.0 Price Performance ource. Capital IQ

8/14/2019 09-12-15 Web 2.0 Weekly

7/20

Pag

Universe split between risers and decliners: Twenty-three companies in our universe had positive stock priceperformances over the past week (for stocks with prices greater than $1) (Figure 6), while 23 companies showed negative1-week returns.

1 Week Price Performance

-7.3%-6.4%-6.2%

-5.6%-4.9%-4.5%-4.1%-4.0%

-3.4%-3.0%-2.7%-2.6%-2.5%-2.4%-2.0%-1.6%-1.4%

-0.6%-0.6%-0.4%-0.4%-0.3%-0.1%

0.0%0.0%0.2%0.3%

0.9%0.9%1.2%1.3%1.5%1.5%1.6%1.7%1.8%

2.9%3.9%

4.6%5.5%5.9%

8.2%8.3%

8.8%11.3%12.0%

23.7%38.2%

-0.1 0 0.1 0.2 0.3 0.4

Kings oft Co. Ltd.Northgate Tec hnologies Limited

NetDragon WebS oft, Inc.Fluid Mus ic Canada, Inc.

GigaMedia Ltd. The9 Limited

DADA SpAFrogster Interactive Pictures AG

Y nk Korea Inc.XING AG

Gravity Co., Ltd TheS treet.com, Inc.

Open Text Corp.Ngi Group Inc.V alueClick Inc.

CDC Corp.NEOWIZ G ames Corporation

Perfect World Co., Ltd.Neteas e.c om Inc.United O nline Inc .

Y D Online Corp.Modern T imes Gr oup Mtg ABAQ Interactive, Inc.

LookS mart, Ltd.Webzen Inc.

Myriad Group AGHanbitSoft, Inc.Cyberplex Inc.

Openw ave S ys tems Inc.Actoz Soft Co., Ltd.

Chinese Ga mer InternationalGa meOn Co L td.

Changyou.com LimitedIAC/InterActiveCorp.

S ohu.com Inc.S handa Interac tive Entertainment Ltd.

Mixi, Inc.Giant Interac tive Group, Inc.

Eolith Co. Ltd.S park Networks, Inc.

Gamania Digital Entertainment Co., Ltd.PNI Digital Media Inc.

Tenc ent Holdings L td.Gree, Inc.

S hutterfly, Inc.S K Communica tions C o., Ltd.

Tree.Com, Inc.Quepas a Corp.

igure 6. 1-Week Price Performance ource. Capital IQ

8/14/2019 09-12-15 Web 2.0 Weekly

8/20

Pag

U B LI C C O M PA N Y I N D U S TRY N EWS ( PA RTN ER S H I PS , F I N A N C I A L R ES U LTS , N EW P R O D U C TS )

Key DevelopmentsCompany Headline Notes

Modern Times Group Mtg AB (OM:MTG); S anoma Oyj (HLSE :SAA1V)

Modern Times G roup Mtg AB E nters StrategicCooperation with the S anoma O yj

Modern Times Gr oup Mtg AB a nnounced that it has entered into a strategic coopera tion with the S anoma O yj to launch alocalised premium sports channel in Finland. Nelonen S port Pro will be launched in February 20 10 and will feature conte

from both Via sa t and Sa noma-owned Nelonen Media, including the Finnish S M Liiga, NHL and K HL international ice hleague; football from UEF A Champions League, E nglish FA Cup and the French Ligue 1; Moto GP , AT P Ma ster Seritennis; as well as E uroleague basketball and coverage of major international golf tournaments. S port Pro will be whollyowned by the S anoma E ntertainment and the channel will be available exclus ively on Vias at's Finnish digital s atellite p TV platform and in Viasat pay- TV packages in cable networks in Finland from launch.

heStreet.com, Inc. (NasdaqGM:TSCM) Thestreet.com, Inc. Declares Quarterly CashDividend, Paya ble on December 31, 2009

TheS treet.com, Inc. a nnounced that its board of directors has declared the Company's quarterly cash dividend on itscommon stock. T he cas h dividend of $0.025 per s hare of common stock will be payable December 31, 2009, to allshareholders of record at the close of business on December 15, 2009.

Open Text Corp. (NasdaqGS:OTEX) Open Text Corp. Expands P ortfolio of EC MS olutions for Oracle(R ) Applications

Open Text C orp. announced that it has expanded its portfolio of E CM s olutions for Orac le(R ) Applications with theintroduction of new content access and accounts payable s olutions. U sing these Open T ext offerings, enterprises canass ociate Oracle transactions with business content to increase process efficiency, reduce operating costs a nd moreeffectively manage ris k. In a ny company there are two primary streams of information. O ne is the structured-data s ide drby Oracle Applications. T he second is the flow of electronic and paper content ass ets that surround a transaction, ranginfrom simple email confirmations to formal contracts as well as paper documents. E nterprises that can s uccess fully correthese two streams of information can realize significant productivity gains. That is where Open Text E CM s olutions forOracle c ome in, enabling customers to take full advantage of the Open Text E CM S uite.Open Text C ontent Access for Oracle is a new offering that provides a s ingle point of access to Oracle and non-Oracle dand content ass ets from either the Oracle user interface or from the Open T ext EC M S uite. I t enables

companies to organize a nd manage all content, including legacy content, in virtual folders and provides an eas y andlow-cost way to archive documents. Organizations often must reuse the same business content throughout multipleapplications, even though parts of documents a re tied to specific applications s uch as E R P or CR M. Open T extContent Acces s for Ora cle provides a means of s haring this business content across different applications for asingle face to customers, partners or employees.

AS E nergy, Inc. (OTCPK: IASC.A) IAS Energy Inc., A nnual General Meeting, Dec08, 2009

IAS E nergy Inc., Annual General Meeting, Dec 08, 2009 Location: The River Club, 11111 Horseshoe Way, R ichmonBritish Columbia, Canada.

MOKO.mobi Limited (ASX:MKB) MOK O.mobi Limited announced it expects toreceive AUD 1 million in funding.

MOK O.mobi Limited (AS X: MKB ) announced a private placement of 10 million common shares a t AUD 0.10 per shargross proceeds of AUD 1 million with sophisticated and profess ional investors on December 8, 2009.

he9 Limited (NasdaqGS:NCTY) Webzen Inc. Pursues Trademark LitigationAgainst The9 Limited for Trademark Agreement and Trans fer R ights Violation withMU

Webzen Inc. announced that they had begun pursuing trademark litigation against their The9 Limited, for trademark agreement and transfer rights violation with MU. W ebzen first filed the trademark transfer la wsuit at S eoul District Courmandating The9 to transfer their trademark title of MU which was registered since 2002 in Chinese National Chamber ofCommerce to Webzen I nc. W ebzen claims that T he9 violated the trademark transfer provision of their contract signed in2003, stating that The9 shall transfer all of MU-related trademarks to Webzen per Webzen's request as well as restraininfrom all of MU-related copyright infringement. Webzen also made clear that this lawsuit is to reserve their trademark righfor MU from The9. Webzen had previously a llowed T he9 to register MU under The9 in order to provide s mooth initial s edistribution to China, however Webzen still reserved the trademark right of MU, and The9 had an obligation to transfer thetitle to Webzen per their request. T he9 had been the service provider of MU in C hina. T he dispute between W ebzen and The9 began in June, 2009 when The9 revea led with teasermovies and original graphic works of their own MMOR PG named MUX in the well-known Chinese game s how 'ChinaJoy 2009,' c ommenting that MUX will be the s equel to the MU s eries. As the original developer of MU, W ebzen begantrademark and copyright infringement with The9. S ince MUX was revealed, W ebzen had requested The9 to ceas e anyusage of MU in MUX brand and correct their comment about MUX being the s equel to MU, but The9 has beenavoiding commenting or taking any action. The9 announced through their webpage that MUX is their own 2.5D onlinegame and will first reveal the game to the consumers during 2009. As the dispute grew, The9 changed MUX into thefull name, Miracle: Ultimate X, on their disclosure from S eptember, 2009 but they are s till using MUX on their officialwebsite. W ebzen is a lso preparing to file a complaint against T he9 and MUX to Korea a nd China CopyrightsCommission in order to protect their trademarks and copyrights of MU.

igure 7a. Key Developments ource. Capital IQ

8/14/2019 09-12-15 Web 2.0 Weekly

9/20

Pag

Key DevelopmentsCompany Headline Notes

he9 Limited (NasdaqGS:NCTY) The9 S igns Agreement with NEO WI Z onLicensing WO F

The9 Limited signed an agreement with NEO WI Z G AME S on licensing the operation of World of Fighter (WOF ) in theR epublic of Korea. W OF is a mass ively multiplayer online role-playing game developed by The9 Development Center. announced that it has position the R &D as a k ey s trategy in the future and that the WOF is the company's flagship produwhich is subject to final beta-test in China and will be put on market soon.

DigitalPost Interactive, Inc.

OTCBB:DGLP)

DigitalP ost Interactive, Inc. plans to Launch

TheChurchPost.com

DigitalP ost Interactive, Inc. announced plans to launch TheChurchPos t.com, a new digital media sharing website platfor

for religious organizations and their members and communities to connect with each other in a secure, user-friendly onlineenvironment. T he C hurchP ost platform represents DigitalP ost's entry into church photography, a new vertical market andadditional opportunity for DigitalP ost to grow its sa les c hannel utilizing its award winning digital media s haring platform. TheChurchPos t.com is s cheduled to be live before the end of 2009. With more than 335,000 churches--and more than 25million members--in the U. S . alone, this new vertical is potentially a substantial market for DigitalP ost. B y providing theplatform and technology for those religious groups, D igitalP ost gains the opportunity to als o provide the sec urity elementsthe churches' a dministrative needs a s well as the necessa ry sec ure user functionality for all its digital s haring members.

Gravity Co., Ltd (NasdaqGM:GRVY) Gra vity Co., Ltd and Softstar E ntertainmentInc. R each S ettlement

Gra vity Co. L td. announced that S oftstar E ntertainment Inc. and the company have rea ched a s ettlement in the lawsuitpending in the High Court of the R epublic of Singapore. Under the deed of settlement, Gra vity agreed to pay US D 2 millto Softstar. T he company reflected accrua l for the settlement of KR W 1,676 million, the balance after deducting the licenfee paid by S oftstar in 2005 , in its financial result for the third quarter ended S eptember 30, 2009. As a part of thesettlement, the company and S oftstar have mutually agreed to ceas e a ll the claims a nd counterclaims a gainst each other. The parties a lso have agreed not to bring any further actions aga inst each other as regards to the matters.

hutterfly, Inc. (NasdaqGS:SFLY) S hutterfly Launches Wink, a New Se rvice ThatGives the Social Network G eneration aR eason to Print

S hutterfly, Inc. announced Wink(TM), a new service that combines real-time sha ring with photo printing for the socialnetworking generation. W ink enables consumers to crea te and s hare printed photostrips(TM) using pictures from iPhonesand social network sites like F acebook and F lickr. P hotostrips can be delivered anywhere in the world for only $2. 50including tax and shipping. W ink is available a s a free iP hone app and a full-featured website at wink.s hutterfly.com.

igstring Corp. (OTCBB:B SG C) Bigstring Corp. Announces Changes inR egistrant's Certifying Accountant

On December 7, 2009, Wiener Goodman & Company, P.C. combined with Madsen & Associates CPA's Inc. in a transpursuant to which Wie ner Goodma n combined a portion of its operations with Madsen a nd certain of the profess ional sta fand partners of Wiener G oodman joined Madsen either as employees or partners of Mads en. As a res ult of this transa ctiWiener G oodman res igned as the independent auditors of B igstring Corp., effective December 7, 2009, and, with theapproval of the Audit Committee of the company's Board of Directors, Madsen was engaged as the company's independenregistere d public acc ounting firm on the sa me date. P rior to engaging Mads en, the company did not consult with Mads enregarding the application of accounting principles to a specific completed or contemplated transaction or regarding the typeof audit opinions that might be rendered by Madsen on the company's financial statements, and Madsen did not provide anwritten or oral advice that was an important factor considered by the company in reaching a decision as to any suchaccounting, auditing or financial reporting issue.

Open Text Corp. (NasdaqGS:OTEX) Open Text Corp. Announces E xecutiveChanges

On December 9, 2009, O pen Text Corp. announced that Kirk R oberts, E xecutive Vice P resident, Products, will leave hposition effective J anuary 1, 2010, and will leave the company effective February 15, 2010. The res ponsibilities of Mr.R oberts will be as sumed by E ugene Roman, chief information officer, and J ames Latham, chief marketing officer.

ree.Com, Inc. (NasdaqGM:TREE) Tree.Com, Inc. P rovides E arnings G uidancefor the Full Yea r of 2009

Tree.com, Inc. provided earnings guidance for the full year of 2009. For the year, the company announced that with theimproved revenue and lower operating expenses offset somewhat by the higher marketing costs, it anticipates operating

income in a range of negative $0. 5 million to positive $4.5 million. Adding back non-cash compensation, amortization andepreciation, the expectation is that the above will res ult in Adjusted E B IT DA in a ra nge of $10 million to $15 million fo2010.

hinaren, Inc.; Sohu.com Inc.NasdaqGS:SOHU)

S ohu.com Inc. and Chinaren, Inc. to IntroduceMicroblogging S ervice

S ohu.com Inc. and Chinaren, I nc. would introduce microblogging service, a new kind of social networking service (S NS The S ohu's microblogging website, t.s ohu.com, is till under maintenance and that of China R en opens for registration butunder internal test, as indicated on its website, t.chinaren.com. Microblogging is a form of multimedia blogging that allowusers to send brief text updates or s hare photos a nd audio clips with a restricted group chosen by the user. Many Chineseinternet service providers, including Sina ( S INA. NAS DAQ) and Te cent, have launched the microblogging product in thecountry and NetE as e (NT E S .NAS DAQ) is a lso mulling on introducing this s ervice. However, the profit pattern of this sis s till uncertain in China . S ome industry insiders noted that the operation will face huge policy risk s ince the approvingmechanism for this product is still incomplete in the country.

ree.Com, Inc. (NasdaqGM:TREE) Tree.Com, Inc. LaunchesLendingtreeautos.C om to Help ConsumersMake S mart Decisions about Buying TheirNext Car

Tree.C om, Inc. launched LendingTreeAutos.com, a dedicated online portal to help consumers make s mart decisions abobuying their next car. The new site covers the full scope of car buying information, tools and services, providing one-stopacces s to new and used ca r sea rches, vehicle history reports, monthly payment calculators, quotes from local dealers, tiand advice, auto insurance and financing, and more. Already a trusted provider of auto loans to consumers throughLendingTree, Tree. com tapped into a proven team of industry experts to create the most comprehensive channel for carbuying online.

NI Digital Media Inc. (TSXV :PN) P NI Digital Media Inc. to Report Q4, 2009

R esults on December 14, 2009

P NI Digital Media Inc. a nnounced that they will report Q4, 20 09 results on December 14, 2009.

igure 7b. Key Developments continued ource. Capital IQ

8/14/2019 09-12-15 Web 2.0 Weekly

10/20

Page

VA LU ATI O NOnline Gaming companies lead market-cap charts: Thirteen companies in our Web 2.0 universe top US$1 billion inmarket capitalization (Figure 8). Fifty-eight of the 89 companies have market caps under US$100 million, with 37 underUS$25 million. Online gaming companies dominate the top of the list, led by Tencent Holdings (SEHK:700) with a marketcap of approximately US$37.4 billion.

Market Cap (USD m)

0. 00. 00. 00. 20. 20. 40. 40. 60. 70. 81. 01. 31. 82. 02. 22. 42. 94. 24. 34. 65. 36. 88. 08. 99. 110.313.614.815.916.018.318.720.020.821.423.424.626.029.932.635.135.637.238.339.551.558.265.867.567.969.971.771.974.874.987.697.598.6142.8152.9179.3188.8195.4200.1208.0222.0236.1250.2253.3276.9375.5450.3589.6739.7770.2842.11117.81390.71691.7

2047.52144.52156.62418.22547.03109.73535.64791.437428.2

1730.9

0 500 1,000 1,500 2,000 2, 500 3, 000 3,500 4,000

S ocial Media V entures Inc.S NM Global Holdings

Dibz International, Inc.China G atewa y Corporation

The Pa rent CompanyAs s ociated Media Holdings Inc.

CLICKER Inc.K AB Dis tribution Inc.

Wy ndstorm CorporationUnis erve Communications Corp.

LiveW orld Inc.Bigs tring Corp.

Betaw ave CorporationBeyond Commerce, Inc.

S NAP Intera ctive, Inc.Worlds. com Inc.

CornerWorld CorporationBroadWebAsia Inc.UOMO Media, Inc

DigitalPos t Interac tive, Inc.B right Things plc

S pectrumDNA, Inc.isee media Inc.

Magnitude Information S ys tems Inc.V OIS, Inc.

Lingo Media CorporationJumbuck Enterta inment L imited

MOKO .mobi L imitedDolphin Digital Media, Inc.

Y nk Korea Inc.LookS mart, Ltd.

Ac celerize New Media, Inc.Extensions, Inc.

Northgate Tec hnologies LimitedWizz ard Softw are Corporation

S ocialw ise, Inc.AQ Interactive, Inc.

As knet AGQuepas a Corp.Ngi Group Inc.

NeXplore CorporationWebzen Inc.DXN Holdings B hd

DigitalTow n, Inc.Grav ity Co., Ltd

Spark Networks, Inc.PNI Digital Media Inc.

GeoS entric OyjFrogs ter Interac tive Pictures AG

TheStreet.com, Inc.Eolith Co. Ltd.

HanbitS oft, Inc.Ga meOn Co L td.

Cyberplex Inc.NeuLion Incorporated

Y D Online Corp. Tree.Com, Inc.

Fluid Mus ic Cana da, Inc.DADA SpA

Actoz Soft Co., Ltd. The9 Limited

Openwave Sy s tems Inc.GungHo Online Entertainment, Inc.

GigaMedia Ltd.Myriad Group AG

OAO RB C Information S ys temsGamania Digital Entertainment Co., Ltd.XING AG

CDC Corp.NetDragon WebS oft, Inc.

S K C ommunica tions Co. , L td.Shutterfly, Inc.

United Online Inc .Kingsoft Co. Ltd.

NEOWIZ Ga mes CorporationV alueClick Inc.

Chinese Ga mer InternationalMixi, Inc.

Giant Interac tive G roup, Inc.Changyou.com Limited

S ohu.com Inc.Perfect World Co., Ltd.

Open Text Corp.Gree, Inc.

IAC/InterActiveCorp.Modern T imes Group Mtg AB

S handa Interac tive Entertainment Ltd.Netease.com Inc.

Tenc ent Holdings L td.

igure 8. Market Cap Rankin

ource. Capital IQ

8/14/2019 09-12-15 Web 2.0 Weekly

11/20

Page

TEV/Revenue (LTM) averages 5.7x: The overall average TEV/Revenue (LTM) multiple for our group is 5.7x (vs. 5.7x lastweek) (Figure 9). Four companies trade above 25x revenue SpectrumDNA, Inc. (OTCBB:SPXA) at 48.7x, Bigstring Corp.(OTCBB:BSGC) at 37.4x, Worlds.com Inc. (OTCBB:WDDD) at 33.2x, and Tencent Holdings Ltd. (SEHK:700) at 25.9x. Themedian of 1.7x compares to 1.6x last week. Note that we exclude multiples greater than 50x. Thirty-one companies havemultiples under 1.5x.

TE V/LT M R evenue (x)

0.0 0.00.0 0.1 0.2 0.20.2 0.20 .3 0.3 0.40 .4 0.4 0.5 0.5 0.6 0.70 .7 0.70.8 0.8 1.0 1.0 1.0 1.0 1.1 1.3 1.3 1.31.4 1.4 1.5 1.6 1.8 1.9 1.9 2.5 2.7 2.7

3.0 3.13.2 3.74.4 4.54 .6 4.7 4.7 5.6

5.7 5.7 6.0 6.97.6 9.0

11.0

12.614.8 15.2

17.020.0

23.0

25.9

33.2

37.

Average, 5.7

0. 0

10.0

20.0

30.0

40.0

50.0

60.0

C h i n a

G a t e w a y

C o r p o r a t i o n

A Q I n t e r a c t

i v e

, I n c

.

O A O

R B C I n f o r m a t

i o n

S y s t e m s

T h e S t r e e t . c o m

, I n c

.

A s k n e t A

G

S N A P I n t e r a c t

i v e ,

I n c .

C L I C K E R I n c .

T h e

P a r e n t

C o m p a n y

T r e e

. C o m

, I n c .

U n i s e r v e

C o m m u n

i c a t

i o n s

C o r p .

J u m

b u c k

E n t e r t a

i n m e n t L

i m i t e d

O p e n w a v e

S y s t e m s

I n c .

N o r t h g a t e

T e c

h n o l o g

i e s

L i m

i t e d

P e r

f e c t

W o r

l d C o .

, L t d

.

C y b e r p l e x

I n c .

D X N H o l

d i n g s

B h d

I A C / I n t e r A c t

i v e C o r p .

C D C C o r p .

G i g a M e d

i a L t d .

D A D A S p A

U n i t e

d O n l

i n e

I n c

.

A c t o z

S o f t C o .

, L t d

.

S p a r k

N e t w o r

k s , I

n c .

B e y o n

d C o m m e r c e

, I n c .

H a n

b i t S o f t ,

I n c .

S N M G l o b a l H o

l d i n g s

V a l u e

C l i c k I n c .

Y n k

K o r e a

I n c .

G u n g H o

O n

l i n e

E n t e r t a i n m e n t ,

I n c .

N e t

D r a g o n

W e b

S o f t ,

I n c .

G a m a n

i a D i g i t a l E n t e r t a

i n m e n t C o .

, L t d

.

S h u t t e r f

l y , I

n c .

Y D O n

l i n e

C o r p .

M o

d e r n

T i m e s

G r o u p

M t g

A B

C o r n e r

W o r

l d C o r p o r a t

i o n

S K C o m m u n

i c a t i o n s

C o .

, L t d

.

N e u

L i o n

I n c o r p o r a t e d

P N I D i g i t a l M e d

i a I n c .

O p e n

T e x t

C o r p

.

S o h u . c o m

I n c .

X I N G A G

M y r

i a d G r o u p

A G

N E O W I Z G a m e s

C o r p o r a t i o n

W i z z a r d

S o f t w a r e

C o r p o r a t i o n

S o c

i a l M e d

i a V e n t u r e s

I n c .

i s e e m e d

i a I n c .

E o l

i t h C o

. L t d

.

K i n g s o f t C o

. L t d

.

C h a n g y o u

. c o m

L i m

i t e d

D i g i t a l P o s t I n t e r a c t i v e

, I n c .

A c c e l e r

i z e

N e w

M e d

i a , I

n c .

U O M O M e d

i a , I

n c

F r o g s t e r

I n t e r a c t

i v e

P i c t u r e s

A G

L i n g o

M e d

i a C o r p o r a t

i o n

M i x i , I n c .

G r e e

, I n c

.

A s s o c i a t e d

M e d

i a H o l

d i n g s

I n c .

G e o

S e n t r

i c O y

j

C h i n e s e

G a m e r

I n t e r n a t

i o n a

l

F l u i d M u s

i c C a n a

d a , I

n c .

M O K O

. m o b

i L i m i t e d

N e X p l o r e

C o r p o r a t

i o n

T e n c e n t

H o l

d i n g s

L t d .

W o r

l d s . c o m

I n c .

igure 9. TEV/Revenue Ranking ource. Capital IQ

TEV/Revenue (LTM) by country/exchange: We have also calculated multiples based on where the companies are listedor domiciled. Figure 10 shows the average TEV/Revenue multiples by stock exchange. The OTCBB has the largestnumber of companies (17), trading at an average multiple of 14.0x (vs. 12.7x last week). On a geographic basis, theUnited States has the most companies (38), trading a t an average of 8.1x revenue (vs. 7.2x last week) (Figure 1 1). Ten ofthe companies are Canadian (average 6.8x revenue).

Average TEV/LTM Revenue - By Exchange

0.00.20.4

0.60.81.31.61.82.32.73.2

3.86.76.76.9

7.58.310.210.6

14.0

14.8

0.02.04.06.08.0

10.0

12.014.016.0

H L S E

O T C B B

S E H K

A S X

G T S M

X T R A

O T C P K

T S E

T S X

T S X V

S W X

A M E X

K O S E

O M

N a s

d a q G

S O S E

C M

K L S E

B S E

N a s

d a q G

M R T S

1 17 3 2 2 3 11 5 4 4 1 2 6 1 14 1 1 1 1 5 1

( x )

# Companies

Average TEV/LTM Revenue - By Country

0.6 0.40.70.81.82.3

3.23.45.35.8

6.87.58.1

10.2

14.8

0.0

2.0

4.0

6.0

8.010.0

12.0

14.0

16.0

F i n l a n d

A u s

t r a l

i a

U n i

t e d

S t a t e s

G e r m a n y

C h i n a

T a i w a n

J a p a n

C a n a d a

S w

i t z e r

l a n d

S o u

t h

K o r e a

S w e d e n I t a

l y

H o n g

K o n g

M a l a y s i a

I n d i a

1 2 38 3 10 3 6 9 1 8 1 1 1 1 1

( x )

# Companies

igures 10 & 11. TEV/Revenue Ranking (Exchange, Country)ource. Capital IQ

8/14/2019 09-12-15 Web 2.0 Weekly

12/20

Page

TEV/EBITDA (LTM) averages 10.5x: The average multiple for the 35 companies with positive EBITDA (and multiplesunder 100x) is 10.5x LTM EBITDA (vs. 10.3x last week), led by Tencent Holdings Ltd. (SEHK:700) at 36.4x (Figure 12).Fifteen companies have EBITDA multiples under 7x. The median multiple is 8.5x (vs. 8.4x last week).

TEV/LTM EBITDA (x)

0. 4 0. 5 0. 8 1. 0 1. 2 1. 8

4. 0 4.4 4.4 4. 7 4. 85. 2 5. 8 6. 0

6. 9 7. 4 7. 68. 5 9. 0

10.6 11.0 11.1 11.511.7 12.0 12.5

12.9 13.5 13.7

19.0

24.326.2 27.3

30.0

3

Average, 10.5

0. 0

5. 0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

O A O

R B C I n f o r m a t i o n

S y s t e m s

A Q I n t e r a c t i v e

, I n c

.

P e r f e c t

W o r l

d C o

. , L t d

.

J u m

b u c

k E n t e r t a

i n m e n t L

i m i t e d

S N A P I n t e r a c t i v e

, I n c

.

T h e

S t r e e t . c o m

, I n c

.

U n

i t e d O n

l i n e

I n c

.

A c t o z

S o

f t C o .

, L t d

.

N e t

D r a g o n

W e

b S o f t ,

I n c

.

C y

b e r p

l e x

I n c

.

S p a r

k N e t w o r k s

, I n c

.

V a

l u e

C l i c k I n c

.

G u n g H o

O n

l i n e

E n t e r t a

i n m e n t ,

I n c

.

D A D A S p

A

S o

h u

. c o m

I n c

.

T r e e

. C o m

, I n c

.

Y D O n

l i n e

C o r p

.

G a m a n

i a D i g i t a l E n t e r t a

i n m e n t

C o

. , L t d

.

C h a n g y o u

. c o m

L i m i t e d

O p e n

T e x t

C o r p

.

I A C / I n t e r A c t i v e

C o r p

.

C D C C o r p

.

X I N G

A G

K i n g s o

f t C o

. L t d

.

Y n

k K o r e a

I n c .

S h u t t e r f

l y ,

I n c

.

M o

d e r n

T i m e s

G r o u p

M t g

A B

O p e n w a v e

S y s t e m s

I n c .

N E O W I Z G a m e s

C o r p o r a t i o n

G r e e

, I n c

.

P N I D i g i t a l M e

d i a I n c

.

C h i n e s e

G a m e r

I n t e r n a t i o n a

l

M i x i , I n c

.

S K C o m m u n

i c a t i o n s

C o

. , L t d

.

igure 12. TEV/EBITDA Ranking ource. Capital IQ

TEV/EBITDA (LTM) by country/exchange: Figure 13 shows the average TEV/EBITDA multiples by stock exchange. TheOTCBB has the largest number of companies (17), trading at an average multiple of 1.2x. On a geographic basis, theUnited States has the most companies (38), trading at an average of 6.8x EBITDA (Figure 14). Ten of the companies areCanadian (average 6.6x EBITDA).

Average TEV/LTM EBITDA - By Exchange

0.41.01.24.64.74.85.86.0

8.08.511.512.913.9

15.617.4

30.4

0.0

5.010.0

15.0

20.0

25.0

30.0

35.0

T S X V

G T S M

T S E

K O S E

O M

X T R A

N a s

d a q G

S

S E H K

C M

O S E

A M E X

T S X

N a s

d a q G

M

O T C B B

A S X

R T S

4 2 5 6 1 3 14 3 1 1 2 4 5 17 2 1

( x )

# Companies

Average TEV/LTM EBITDA - By Country

1.0

6.06.66.8

11.111.512.913.1

13.9

17.4

19.0

0.02.04.06.08.0

10.012.014.016.018.020.0

C a n a d a

T a i w a n

S o u

t h

K o r e a

J a p a n

S w e d e n

G e r m a n y

H o n g

K o n g

U n i

t e d

S t a t e s

C h i n a

I t a l y

A u s

t r a l

i a

9 3 8 6 1 3 1 38 10 1 2

( x )

# Companies

igures 13 & 14. TEV/EBITDA Ranking (Exchange, Country)ource. Capital IQ

8/14/2019 09-12-15 Web 2.0 Weekly

13/20

Page

P/E (LTM) averages 21.5x: The average multiple for the 33 companies with positive earnings (and multiples under 100x)is 21.5x LTM EPS (vs. 21.5x last week), led by HabitSoft, Inc. (KOSE:A047080) with a 71.5x multiple (Figure 15). Thirteencompanies have P/E multiples under 10x. The median is 12.5x.

P/E LT M (x)

0.0 0.0 1. 82. 0 2.3 2.6 2. 6 3. 9

5. 5 6. 8 7. 27. 9 9. 3 10.8 11.7

12.0 12.5 13.416.2 16.7 17.1

22.124.9

33.0 34.336.7

40.1 40.9

47.1

63.3 65.069.6 7

Average, 21.5

0. 0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

G r a v

i t y C o

. , L t d

W e

b z e n

I n c

.

G i a n t

I n t e r a c t i v e

G r o u p

, I n c

.

T h e

9 L i m i t e d

S h a n

d a

I n t e r a c t i v e

E n t e r t a

i n m e n t

L t d

.

N e t e a s e

. c o m

I n c

.

P e r f e c t

W o r l

d C o

. , L t d

.

J u m

b u c

k E n t e r t a

i n m e n t

L i m i t e d

D X N H o

l d i n g s

B h d

C y

b e r p

l e x

I n c

.

G a m e

O n

C o

L t d

.

G i g a

M e

d i a L t d

.

Y D O n

l i n e

C o r p

.

I A C / I n t e r A c t i v e

C o r p

.

C h a n g y o u

. c o m

L i m i t e d

S N A P I n t e r a c t i v e

, I n c

.

S o

h u

. c o m

I n c

.

N e t D r a g o n

W e

b S o

f t ,

I n c

.

K i n g s o

f t C o

. L t d

.

M o

d e r n

T i m e s

G r o u p

M t g

A B

S p a r k

N e t w o r k s

, I n c

.

A c t o z

S o

f t C o

. , L t d

.

G a m a n

i a D i g i t a l E n t e r t a

i n m e n t

C o

. , L t d

.

X I N G

A G

C h i n e s e

G a m e r

I n t e r n a t i o n a

l

G u n g

H o

O n

l i n e

E n t e r t a

i n m e n t ,

I n c

.

N E O W I Z G a m e s

C o r p o r a t i o n

G r e e

, I n c

.

O p e n

T e x t

C o r p

.

L i v e

W o r l

d I n c

.

T e n c e n t

H o

l d i n g s

L t d

.

M i x i , I n c

.

igure 15. P/E Ranking ource. Capital IQ

P/E (LTM) by country/exchange: Figure 16 shows the average P/E multiples by stock exchange. The OTCBB has thelargest number of companies (17), trading at an average multiple of 12.0x. On a geographic basis, the United States hasthe most companies (38), trading at an average of 25.8x earnings (Figure 17). Ten of the companies are Canadian(average 26.9x EPS).

Average P/E - By Exchange

1.8 0.03.9

5.56.811.112.0

16.717.1

29.631.633.035.736.7

39.2

63.3

0.0

10.0

20.0

30.040.0

50.0

60.0

70.0

O T C P K

T S E

O S E

K O S E

X T R A

S E H K

G T S M

A M E X

O M

O T C B B

N a s

d a q G

S T S X

K L S E

A S X

N Y S E

N a s

d a q G

M

11 5 1 6 3 3 2 2 1 17 14 4 1 2 1 5

( x )

# Companies

Average P/E - By Country

3.95.5

13.016.7

22.423.825.8

26.933.0

38.6

0.0

5.0

10.0

15.0

20.025.0

30.0

35.0

40.0

45.0

J a p a n

G e r m a n y

C a n a d a

U n i

t e d

S t a t e s

S o u

t h

K o r e a

T a i w a n

S w e d e n

C h i n a

M a l a y s i a

6 3 9 38 8 3 1 10 1 2

( x )

# Companies

igures 16 & 17. P/E Ranking (Exchange, Country)ource. Capital IQ

8/14/2019 09-12-15 Web 2.0 Weekly

14/20

Page

UPCOMING EVENTSThere are no upcoming earnings e vents in our Web 2.0 universe.

igure 18. Earnings Calendar ource. Company reports

8/14/2019 09-12-15 Web 2.0 Weekly

15/20

Page

Comparable Company Analysis > Web 2.0rice Performance

ompany Name Currency Tic ker E xchange US D Market Cap ($m) Current Price 1 Wk 1 Mth 3 Mth 6 Mth 1 Yr 52 Week

ccelerize New Media, Inc. US D AC LZ OT C B B 18.7 0.65 18.2% -13.3% 8.3% 85.7% 85.7%ctoz S oft C o. , L td. K R W A052790 K OS E 152.9 21, 050 1. 2% 34.1% 16.0% -27.3% 104.4%Q Interactive, Inc. J P Y 3838 T S E 24.6 40, 500 -0.1% -8.0% -24.3% -47.3% 45.7% -sk net AG E UR XT R A:A5A XT R A 26.0 4 0. 6% 16.6% 6.7% 26.2% -17. 0%ss ociated Media Holdings Inc. US D AS MH OT C P K 0.4 0.01 -98.8% 0.0% -35.7% -55.0% 200.0%igs tring C orp. US D B S G C OT C B B 1.3 0.02 -25.0% -34.4% 5.0% -27.6% 5.0%etawave C orporation US D B W AV OT C B B 1.8 0.06 -42.7% 110.0% -10.0% -37.0% -60. 6%eyond Commerce, Inc. US D B Y OC OT C B B 2.0 0.04 -27.1% -41.7% -81.6% -96.3% -95. 3%right T hings plc G B P AIM:B G T AIM 5.3 0.01 0. 0% 4.3% -10.9% -27.1% 6.5%roadW ebAs ia Inc. US D B W B A OT C P K 4.2 0.05 0. 0% 150.0% -78.3% -78.3% -95. 0%DC C orp. US D CHIN.A Nas daqG S 253.3 2.39 -1.6% -4.0% -18.7% 55.2% 85.3% -hangyou.com Limited US D CY OU Nas daqG S 1,730.9 31.47 1. 5% -6.9% -23.8% -10.1% NM -3hina G ateway C orporation US D CG W Y OT C P K 0.2 0.01 350.0% 350.0% -40.0% 350.0% 350.0% -hines e G amer International T W D GT S M:3083 G T S M 1,117.8 431.00 1. 3% -7.3% -0.9% 41.3% 379.4% -LICK E R Inc. US D CL K Z OT C B B 0.4 0.01 -23.1% -16.7% 0.0% 0. 0% -92. 9%ornerW orld Corpora tion US D CW R L OT C B B 2.9 0.03 0. 0% -50.0% -50.0% -57.1% -93. 6%yberplex Inc. C AD T S X:C X T S X 74.8 1.18 0. 9% -12.6% -7.1% -34.1% 227.8%ADA S pA E UR CM:DA C M 142.8 6.02 -4.1% -14.1% -14.1% -1.4% -14. 1%XN Holdings B hd MY R DXN K LS E 37.2 0.57 -0.9% -10.2% -1.7% 40.7% 50.0%ibz Interna tional, Inc. US D DIB Z OT C P K 0.0 0.01 316.7% 316.7% 316.7% 400.0% -50. 0%igitalP os t Interactive, Inc. US D DG LP OT C B B 4.6 0.05 0. 0% -10.2% -1.9% 32.5% 152.4%igitalT own, Inc. US D DG T W OT C B B 38.3 1.40 0. 0% 38.6% -20.0% -44.0% -53. 3%olphin Digital Media, Inc. US D DP DM OT C B B 15.9 0.28 3. 7% -20.0% -33.3% -44.0% -53. 3%olith C o. Ltd. K R W A041060 K OS E 69.9 565.00 4. 6% 2.7% -35.8% -22.1% -7.4%xtens ions , Inc. US D E XT I OT C P K 20.0 0.45 50.0% 80.0% 125.0% NM 350.0%luid Mus ic C anada, Inc. C AD T S X:FMN T S X 98.6 1.70 -5.6% -5.6% 21.4% 126.7% 593.9%rogs ter Interactive P ictures AG E UR FR G XT R A 67.5 18.00 -4.0% -2.7% -2.7% 132.3% 237.7%amania Digital E ntertainment C o. , Ltd. T W D 6180 G T S M 236.1 49.90 5. 9% 7.1% 5.1% -1.4% 205.2% -2ameOn C o Ltd. J P Y 3812 T S E 71.9 66, 500 1. 5% -2.3% -34.7% -38.7% -45. 5% -eoS entric Oyj E UR GE O1V HLS E 65.8 0.05 0. 0% -16.7% 0.0% 25.0% 25.0%iant Interactive G roup, Inc. US D GA NY S E 1,691.7 7.47 3. 9% 4.2% -2.7% -7.4% 20.5%igaMedia Ltd. US D GIGM Nas daqG S 200.1 3.67 -4.9% -14.5% -24.8% -32.2% -38. 3% -ravity Co. , Ltd US D GR V Y Nas daqG M 39.5 1.42 -2.7% 1.4% -20.2% 30.3% 136.7%ree, Inc. J P Y T S E :3632 T S E 2,418.2 4, 830 8. 8% -6.6% 3.5% 59.9% 84.0%ungHo Online E ntertainment, Inc. J P Y 3765 OS E 195.4 152, 500 -1.0% -27.4% -41.1% -32.2% 42.7% -4anbitS oft, Inc. K R W A047080 K OS E 71.7 3, 910 0. 3% 10.9% -6.3% -18.3% 15.3%

AC /InterActiveC orp. US D IAC I Nas daqG S 2,547.0 19.30 1. 6% -1.6% -4.4% 18.2% 18.0%eemedia Inc. C AD IE E T S XV 8.0 0.17 -13.2% -8.3% 175.0% 120.0% 266.7% -

umbuck E ntertainment Limited AUD AS X: J MB AS X 13.6 0.32 0. 0% -8.6% -13.5% -22.0% -17. 9% -AB Dis tribution Inc. C AD T S X:K AB T S X 0.6 0.01 -50.0% -99.2% -99.2% -98.6% -99. 4%ings oft C o. Ltd. HK D 3888 S E HK 739.7 5.24 -7.3% -29.5% -35.6% 2. 7% 103.1%ingo Media C orporation C AD T S XV :LM T S XV 10.3 0.90 -6.2% -8.2% -10.0% -14.3% -10. 0%iveW orld Inc. US D LV W D OT C P K 1.0 0.03 0. 0% -3.1% -22.5% -69.0% -11. 4%ook S mart, L td. US D LOOK Nas daqG M 18.3 1.07 0. 0% -3.6% -9.3% -18.3% -33. 1% -

Magnitude Information S ys tems Inc. US D MAG Y OT C B B 8.9 0.02 -13.0% 33.3% 122.2% 66.7% 33.3% -Mixi, Inc. J P Y 2121 T S E 1,390.7 807,000.00 2. 9% 19.9% 47.8% 66.7% 39.1%Modern T imes G roup Mtg AB S E K MT G B OM 3,109.7 328.60 -0.3% -1.5% 11.0% 55.0% 105.4%MOK O .mobi Limited AUD MK B AS X 14.8 0.16 18.5% 52.4% 128.6% 220.0% 166.7%Myriad G roup AG C HF MY R N S W X 208.0 4.85 0. 2% 3.9% 7.8% -5.8% -23. 9%

E O W IZ G ames C orporation K R W A095660 K OS E 770.2 43,600.00 -1.4% 5.1% 11.5% 16.4% 327.5%etDragon W ebS oft, Inc. HK D 777 S E HK 276.9 4.06 -6.2% -18.8% -30.6% -18.5% 37.6% -eteas e. com Inc. US D NT E S Nas daqG S 4,791.4 37.02 -0.6% -7.5% -12.2% 5. 5% 76.1% -2euLion Incorporated C AD T S X:NLN T S X 74.9 0.70 -6.7% 0.0% -32.0% -6.7% 125.8%eXplore C orporation US D NXP C OT C P K 35.1 0.63 -7.4% -8.7% 14.5% -10.0% -33. 7% -gi G roup Inc. J P Y 2497 T S E 32.6 23,570.00 -2.4% -5.2% -17.3% -39.3% -54. 6% -

orthgate T echnologies Limited INR 590057 B S E 20.8 28.60 -6.4% -1.4% -36.8% -31.8% -57. 7% -6pen T ext Corp. US D OT E X Nas daqG S 2,156.6 38.25 -2.5% -0.5% 4.0% 5. 1% 29.1% -penwave S ys tems Inc. US D OP W V Nas daqG S 188.8 2.26 0. 9% -4.6% -20.7% -2.6% 253.8% -2erfect W orld Co. , Ltd. US D P W R D Nas daqG S 2,144.5 43.10 -0.6% -7.0% -2.4% 74.2% 164.4% -NI Digital Media Inc. C AD T S XV :P N T S XV 58.2 1.85 8. 2% 8.8% -0.5% 1. 6% 46.8%uepa sa C orp. US D QP S A OT C B B 29.9 2.35 38.2% 67.9% 34.3% 291.7% 55.6% -AO R B C Information S ys tems US D R B C I R T S 222.0 1.60 0. 0% 6.7% 52.4% 62.4% 6.7%handa Interactive E ntertainment Ltd. US D S NDA Nas daqG S 3,535.6 52.57 1. 8% 7.8% -1.2% -2.1% 73.3% -1hutterfly, Inc. US D S F LY Nas daqG S 450.3 17.54 11.3% 13.5% 16.6% 27.8% 147.7%K C ommunications C o. , Ltd. K R W A066270 K OS E 375.5 10,700.00 12.0% 48.0% 18.1% -7.4% 87.4%NAP Intera ctive, Inc. US D S T V I OT C B B 2.2 0.20 0. 0% -50.0% -50.0% -71.4% -71. 4%NM Globa l Holdings US D S NMN OT C P K 0.0 0.00 -30.0% -30.0% -88.3% -90.0% -93. 0%ocial Media V entures Inc. US D S MVI OT C P K 0.0 0.01 -22.7% -35.6% -94.2% -42.0% -99. 5%ocialwis e, Inc. US D S C LW OT C B B 23.4 0.50 0. 0% 6.4% -16.7% -31.5% -44. 4%ohu.com Inc. US D S O HU Nas daqG S 2,047.5 53.24 1. 7% -4.9% -22.5% -16.6% 17.1% -2park Network s , Inc. US D LOV AME X 51.5 2.50 5. 5% -4.6% 16.3% 9. 2% -7.4%pectrumDNA, Inc. US D S P XA OT C B B 6.8 0.14 0. 0% -6.7% -36.4% -30.0% -33. 3%

ncent Holdings Ltd. HK D 700 S E HK 37,428. 2 160 8. 3% 7.5% 28.4% 83.0% 212.9% -0. P a rent C ompany US D K IDS .Q OT C P K 0.2 0.01 0. 0% 0.0% -36.4% -78.8% -97. 9% -98 Limited US D NC T Y Nas daqG S 179.3 7.14 -4.5% -4.0% -12.3% -30.5% -48. 1% -57.

S treet. com, Inc. US D T S C M Nas daqG M 67.9 2.22 -2.6% -14.6% -14.0% 8. 3% -32. 7% -37.e.C om, Inc. US D T R E E Nas daqG M 97.5 8.94 23.7% 25.4% 11.2% 5. 8% 261.9% -3nis erve C ommunica tions Corp. C AD T S XV :US S T S XV 0.8 0.04 -22.2% 0.0% -22.2% -30.0% 40.0%nited Online Inc. US D UNT D Nas daqG S 589.6 6.97 -0.4% -14.6% -14.6% 7. 9% 22.7% -2OMO Media, Inc US D UOMO OT C B B 4.3 0.05 -16.7% -26.5% -61.5% -72.2% -54. 5%

alueC lick Inc. US D VC LK Nas daqG S 842.1 9.83 -2.0% -2.5% -12.5% -17.9% 29.0%OIS , Inc. US D VO IS OT C B B 9.1 0.01 -7.6% 29.4% 144.4% 214.3% 266.7%

W ebzen Inc. US D W ZE N Nas daqG M 35.6 3.00 0. 0% 3.1% 2.0% -20.0% 215.8% -3W izzard S oftware C orporation US D W ZE AME X 21.4 0.40 5. 3% -25.9% -20.0% -41.2% -57. 0% -W orlds . com Inc. US D W DDD OT C B B 2.4 0.05 -55.0% -55.0% -59.1% -50.0% -77. 5%W yndstorm C orpora tion US D W Y ND OT C P K 0.7 0.04 0. 0% -60.0% -60.0% -92.2% -66. 7% -

ING AG E UR O1B C XT R A 250.2 32.41 -3.0% -2.7% -1.8% -4.3% 35.7%D Online C orp. K R W A052770 K OS E 87.6 6,970.00 -0.4% 8.9% -27.8% -24.3% 2.3%nk K orea Inc. K R W A023770 K OS E 16.0 3,570.00 -3.4% -23.7% -16.2% -44.1% -41. 8%

igh 350.0% 350.0% 316.7% 400.0% 593.9% 0.ow -98.8% -99.2% -99.2% -98.6% -99. 5% -99verage 830.3 4.2% 6.4% -3.2% 10.2% 54.4% -43.8%

Median 0. 0% -3.6% -10.9% -8.7% 21.6% -40

igure 19. Price Performance ource. Capital IQ

8/14/2019 09-12-15 Web 2.0 Weekly

16/20

Page

Comparable Company Analysis > Web 2.0Valuation Multiples

ompany Name Sector CountryPrimaryExchange Ticker

USD MarketCap ($m)

TEV/LTMRevenue

TEV/ NTMRevenue

TEV/LTMEBITDA

TEV/NTME B ITDA P/LTM E PS P /NTM E PS P/Ta

ccelerize New Media , Inc. Direct Marketing U nited S ta tes O T C B B AC LZ 18.7 5. 7x - - - - - ctoz S oft C o. , L td. G aming S outh K orea K O S E A052790 152.9 1. 0x - 4. 4x - 22. 1x - Q Interactive, Inc. G aming J apan T S E 3838 24.6 0. 0x - 0. 5x - - - s knet A G G aming G ermany XT R A XT R A :A5A 26.0 0. 2x - - - - - s s ocia ted Media Holdings Inc. Mobile U nited S ta tes O T C P K AS MH 0.4 12.6x - - - - - igs tring C orp. Ins tant Mes s aging U nited S ta tes O T C B B B S G C 1.3 37.4x - - - - - etawave C orpora tion Media U nited S ta tes O T C B B B W AV 1.8 - - - - - - eyond C ommerce, Inc. S ocial Networking U nited S ta tes O T C B B B Y O C 2.0 1. 0x - - - - - right T hings plc S ocial Networking U nited K ingdom AIM AIM:B G T 5.3 - - - - - - roadW ebAs ia Inc. S ocial Networking U nited S ta tes O T C P K B W B A 4.2 - - - - - - DC C orp. G aming H ong K ong NasdaqG S C HIN.A 253.3 0. 7x 0. 7x 11.1x 5. 3x - 91. 9x hangyou. com L imited G aming C hina NasdaqG S C Y O U 1,730.9 5. 6x 4. 6x 9. 0x 7. 1x 11. 7x 10. 1x 9hina G ateway C orpora tion Mobile U nited S ta tes O T C P K C G W Y 0.2 0. 0x - - - - - hines e G amer Interna tional G aming T a iwa n G T S M G T S M:3083 1,117.8 15.2x 15.5x 26.2x 19.1x 34. 3x 21. 4x 1LIC K E R Inc. Direct Marketing U nited S ta tes O T C B B C LK Z 0.4 0. 2x - - - - - ornerW orld C orporation C ontent U nited S ta tes O T C B B C W R L 2.9 1. 9x - - - - - yberplex Inc. A dvertis ing C anada T S X T S X:C X 74.8 0. 5x 0. 4x 4. 7x 3. 7x 6.8x 7. 1x ADA S pA S ocial Networking Italy C M C M:DA 142.8 0. 8x 0. 8x 6. 0x 5. 6x - 17. 6x XN Holdings B hd S ocial Networking Malays ia K LS E D XN 37.2 0. 6x - - - 5.5x - ibz Inte rna tiona l, Inc. S NS Apps U nited S ta tes O T C P K DIB Z 0.0 - - - - - - igitalP os t Inte ractive, Inc. C ontent U nited S ta tes O T C B B DG LP 4.6 5. 7x - - - - - igitalT own, Inc. S ocial Networking U nited S ta tes O T C B B DG T W 38.3 - - - - - - olphin Digita l Media , Inc. S ocial Networking U nited S ta tes O T C B B DP DM 15.9 - 1. 1x - - - 1. 1x

olith C o. L td. G aming S outh K orea K O S E A041060 69.9 4. 7x - - - - - xtens ions , Inc. C ontent U nited S ta tes O T C P K E XT I 20.0 - - - - - -

luid Mus ic C anada , Inc. Media U nited S ta tes T S X T S X:F MN 98.6 17.0x 17.0x - - - - rogs ter Inte ractive P ictures AG G aming G ermany XT R A F R G 67.5 6. 9x - - - - - amania Digita l E nte rtainment C o. , L td. G aming T a iwa n G T S M 6180 236.1 1. 4x - 8. 5x - 24. 9x - 3ameO n C o L td. G aming J apan T S E 3812 71.9 - - - - 7.2x 7. 5x 0eoS entric O yj Mobile F inland HLS E G E O 1V 65.8 14.8x - - - - - iant Inte ractive G roup, Inc. G aming C hina NY S E G A 1,691.7 - - - - 1.8x 15. 8x igaMedia L td. G aming T a iwa n NasdaqG S G IG M 200.1 0. 7x 0. 7x - 3. 3x 7.9x 8. 2x ravity C o. , L td G aming S outh K orea NasdaqG M G R V Y 39.5 - - - - 0.0x - ree, Inc. S ocial Networking J apan T S E T S E : 3632 2,418.2 11.0x 6. 4x 19.0x 11.5x 40. 9x 22. 9x ungHo O nline E nterta inment, Inc. Media J apan O S E 3765 195.4 1. 3x 1. 1x 5. 8x - 36. 7x 12. 1x 6anbitS oft, Inc. G aming S outh K orea K O S E A047080 71.7 1. 0x - - - 71. 5x -

AC /InterActiveC orp. Media U nited S ta tes NasdaqG S IAC I 2,547.0 0. 7x 0. 6x 11.0x 4. 6x 10. 8x 28. 3x eemedia Inc. C ontent C anada T S XV IE E 8.0 4. 6x - - - - - umbuck E nterta inment L imited S ocial Networking Aus tra lia AS X AS X:J MB 13.6 0. 4x 0. 4x 1. 0x 1. 1x 3.9x 2. 8x A B Dis tribution Inc. C ontent C anada T S X T S X:K AB 0.6 - - - - - - ingsoft C o. L td. G aming C hina S E HK 3888 739.7 4. 7x 3. 9x 11.7x 8. 1x 16. 2x 11. 6x ingo Media C orpora tion Learning C anada T S XV T S XV : LM 10.3 7. 6x - - - - - iveW orld Inc. S ocial Networking U nited S ta tes O T C P K LV W D 1.0 - - - - 63. 3x - ookS mart, L td. Direct Marketing U nited S ta tes NasdaqG M LOO K 18.3 - - - - - - 0agnitude Information S ys tems Inc. S ocial Networking U nited S ta tes O T C B B MA G Y 8.9 - - - - - - ixi, Inc. S ocial Networking J apan T S E 2121 1,390.7 9. 0x 7. 4x 27.3x 22.6x 69. 6x 52. 7x odern T imes G roup Mtg AB Media S weden O M MT G B 3,109.7 1 . 8x 1. 7x 12.9x 12.5x 16. 7x 15. 0x OK O .mobi Limited S ocial Networking Aus tra lia AS X MK B 14.8 20.0x - - - - - yriad G roup AG Mobile S witzerland S W X MY R N 208.0 3. 2x - - - - - E O W IZ G ames C orpora tion G aming S outh K orea K O S E A095660 770.2 3. 7x 2. 8x 13.7x 9. 6x 40. 1x 13. 7x etDragon W ebS oft, Inc. G aming C hina S E HK 777 276.9 1. 4x 1. 1x 4. 4x 4. 1x 13. 4x 13. 3x eteas e.com Inc. G aming C hina NasdaqG S N T E S 4,791.4 - - - - 2.6x 13. 9x 0euL ion Incorpora ted V ideo C anada T S X T S X:NL N 74.9 2. 5x - - - - - eXplore C orpora tion C ontent U nited S ta tes O T C P K NXP C 35.1 23.0x - - - - - gi G roup Inc. Media J apan T S E 2497 32.6 - - - - - - 0

orthgate T echnologies L imited Direct Marketing India B S E 590057 20.8 0. 4x - - - - 1. 1x pen T ext C orp. C ollabora tion C anada NasdaqG S O T E X 2,156.6 2. 7x 2. 4x 10.6x 8. 8x 47. 1x 12. 8x penwave S ys tems Inc. Mobile U nited S ta tes NasdaqG S O P W V 188.8 0 . 4x 0. 4x 13.5x 4. 2x - 31. 8x 2erfect W orld C o. , L td. G aming C hina NasdaqG S P W R D 2,144.5 0. 5x 2. 4x 0. 8x 4. 6x 2.6x 12. 5x NI Digita l Media Inc. Digita l Ima ging C anada T S XV T S XV :P N 58.2 2. 7x 2. 2x 24.3x 7. 3x - 14. 8x uepas a C orp. S ocial Networking U nited S ta tes O T C B B Q P S A 29.9 - - - - - - AO R B C Information S ys tems Media R us s ia R T S R B C I 222.0 0. 0x 1. 0x 0. 4x 5. 7x - 6. 5x handa Interactive E nterta inment Ltd. G aming C hina NasdaqG S S NDA 3,535.6 - - - - 2.3x 14. 4x 0. hutterfly, Inc. Digita l Ima ging U nited S ta tes NasdaqG S S FLY 450.3 1 . 5x 1. 4x 12.5x 7. 9x - - K C ommunications C o. , L td. S ea rch S outh K orea K O S E A066270 375.5 1. 9x - 30.0x - - - NAP Interactive, Inc. Da ting U nited S ta tes O T C B B S T V I 2.2 0. 2x - 1. 2x - 12. 0x - NM G loba l Holdings Media U nited S ta tes O T C P K S NMN 0.0 1. 1x - - - - - ocial Media V entures Inc. S ocial Networking U nited S ta tes O T C P K S MV I 0.0 4. 5x - - - - - ocialwise , Inc. S ocial Networking U nited S ta tes O T C B B S C LW 23.4 - - - - - - ohu. com Inc. G aming C hina NasdaqG S S O HU 2,047.5 3. 0x 2. 6x 6. 9x 5. 9x 12. 5x 14. 3x pa rk N etworks , Inc. S ocial Networking U nited S ta tes AME X LO V 51.5 1. 0x - 4. 8x - 17. 1x - pectrumDNA, Inc. Media U nited S ta tes O T C B B S P XA 6.8 48.7x - - - - -

T encent Holdings L td. P orta l C hina S E HK 700 37,428.2 25.9x 17.1x - 33.4x 65. 0x 43. 6x T he P a rent C ompany Media U nited S ta tes O T C P K K IDS . Q 0.2 0. 2x 0. 2x - 12.8x - -

T he9 L imited G aming C hina NasdaqG S NC T Y 179.3 - - - - 2.0x - T heS treet. com, Inc. Media U nited S ta tes NasdaqG M T S C M 67.9 0. 1x 0. 1x 1. 8x - - - T ree. C om, Inc. P orta l U nited S ta tes NasdaqG M T R E E 97.5 0. 3x 0. 3x 7. 4x 8. 7x - -

nis erve C ommunications C orp. S ocial Networking C anada T S XV T S XV :US S 0.8 0. 3x - 36.4x - - - nited Online Inc. Media U nited S ta tes NasdaqG S UNT D 589.6 0. 8x 0. 9x 4. 0x 3. 5x - 5. 3x O MO Media , Inc Media C anada O T C B B UO MO 4.3 6. 0x - - - - - a lueC lick Inc. Media U nited S ta tes NasdaqG S V C LK 842.1 1. 3x 1. 3x 5. 2x 5. 1x - 15. 9x O IS , Inc. S ocial Networking U nited S ta tes O T C B B V OIS 9.1 - - - - - -

W ebzen Inc. G aming S outh K orea NasdaqG M W ZE N 35.6 - - - - 0.0x - 0W izzard S oftware C orporation P odca s ting U nited S ta tes AME X W ZE 21.4 4. 4x - - - - - W orlds . com Inc. C ontent U nited S ta tes O T C B B W DDD 2.4 33.2x - - - - - W ynds torm C orporation C ontent U nited S ta tes O T C P K W Y ND 0.7 - - - - - -

ING AG S ocial Networking G ermany XT R A O 1B C 250.2 3. 1x 2. 4x 11.5x 6. 7x 33. 0x 16. 1x D O nline C orp. G aming S outh K orea K O S E A052770 87.6 1. 6x 1. 4x 7. 6x 6. 2x 9.3x 8. 8x nk K orea Inc. G aming S outh K orea K O S E A023770 16.0 1. 3x - 12.0x - - -

igh 37,428.2 48.7x 17.1x 36.4x 33.4x 71. 5x 91. 9x 5ow 0.0 0. 0x 0. 1x 0. 4x 1. 1x 0.0x 1. 1x verage 830.3 5.7x 3.2x 10.5x 8.5x 21.5x 17.7x 6.4xedian 39.5 1. 7x 1. 3x 8. 5x 6. 5x 12. 5x 13. 8x

igure 20. Valuation Comparison ource. Capital IQ

8/14/2019 09-12-15 Web 2.0 Weekly

17/20

Page

Comparable Company Analysis > Web 2.0ummary by Co untry

ompany Name US D Market C ap ($m) Avg US D Market C ap ($m) US D LTM Total Rev ($m) US D LTM Total E B ITDA ($m) E BITDA %

United States 38 China 49,633.4 China 4 ,963.3 China 4,152.4 China 2,070.2 China 4

anada 10 United States 5 ,811 .3 S weden 2,974.2 United States 3,887.3 S weden 304.6 Australia 4

hina 10 Japan 3,871.5 Japan 645.3 S weden 1,982.6 United States 290.0 Taiwan

outh Korea 8 Sweden 2,974.2 Taiwan 577.9 Canada 1,015.0 Canada 200.0 Japan 2apan 6 Canada 2,488.2 Hong Kong 294.6 S outh Korea 707.3 Japan 186.0 S wedenaiwan 3 Taiwan 1,733.6 Canada 248.8 Japan 634.4 S outh Korea 121.9 Malaysia

Australia 2 S outh Korea 1 ,527.4 S outh Korea 190.9 Taiwan 385.8 Taiwan 59.8 ItalyGermany 2 Germany 317.0 Italy 165.4 Hong Kong 361.6 Italy 31.9 Russia

witzerland 1 Hong Kong 294.6 Russia 160.9 Italy 242.6 Hong Kong 25.1 S outh K orea

Hong Kong 1 Italy 165.4 Germany 158.5 Russia 156.2 Russia 20.4 Hong Konginland 1 Russia 160.9 United States 152.9 India 82.8 Germany 12.5 S witzerland

aly 1 S witzerland 92.0 S witzerland 92.0 Malaysia 77.1 Malaysia 11.1 CanadaUnited Kingdom 1 Finland 65.9 Finland 65.9 Germany 68.7 Australia 4. 5 Germany

ndia 1 Malaysia 39 .8 Malaysia 39 .8 S witzerland 40.0 S witzerland 0. 8 United States -

weden 1 India 31 .0 India 31 .0 Australia 17.8 Norway -1.1 India -

ussia 1 Australia 22 .1 Australia 11 .0 Finland 5. 5 United Kingdom -2.7 Norway -

Malaysia 1 United Kingdom 6. 0 United Kingdom 6. 0 Norway 2. 3 Finland -17.5 United Kingdom

Norway 1 Norway 0. 1 Norway 0. 1 United Kingdom 0. 0 India -41.4 Finland

Grand Total 89 Grand Total 69,234.6 Grand Total 777.9 Grand Total 13,819.5 Grand Total 3,276.1 Grand Total

igure 21. Comparison by Country ource. Capital IQ

Comparable Company Analysis > Web 2.0ummary by Exchange

ompany Name US D Market C ap ($m) Avg US D Market C ap ($m) US D LTM Total Rev ($m) US D LTM Total E B ITDA ($m) E BITDA %

O T C B B 18 S E H K 31,520.4 S E H K 10,506.8 OM 1,982.6 NasdaqGS 1,796.0 N Y S E 6

NasdaqGS 14 NasdaqGS 24,385.7 OM 2,974.2 S E H K 540.0 S E H K 767.5 AS X 4

O T C P K 11 TS E 3,569.2 N Y S E 1,750.4 NasdaqGS 498.6 OM 304.6 S E H K 4

K O S E 6 OM 2,974.2 NasdaqGS 1,741.8 C M 242.6 TS E 160.2 G T S M

TS E 5 N Y S E 1,750.4 G T S M 715.0 N Y S E 198.5 N Y S E 124.1 NasdaqGSNasdaqGM 5 K O S E 1,437.0 TS E 713.8 R T S 156.2 K O S E 103.2 TS E 2

TS X 4 G T S M 1,430.0 OS E 302.3 OS E 116.1 G T S M 59.8 OS E 2

TS X V 4 X T R A 317.0 K O S E 239.5 K O S E 106.0 C M 31.9 OME H K 3 OS E 302.3 C M 165.4 TS E 103.7 OS E 25.8 K L S E

A MEX 2 NasdaqGM 279.7 R T S 160.9 G T S M 101.1 R T S 20.4 C MAS X 2 TS X 243.6 X T R A 158.5 B S E 82.8 NasdaqGM 15.6 R T S

X T R A 2 O T C B B 230.9 S W X 92.0 NasdaqGM 82.4 X T R A 12.5 K O S EG T S M 2 C M 165.4 H L S E 65.9 K L S E 77.1 K L S E 11.1 NasdaqGM

W X 1 R TS 160.9 TS X 60.9 TS X 46.4 A MEX 6. 2 TS X V H LS E 1 S W X 92.0 NasdaqGM 55.9 S W X 40.0 AS X 4. 5 S W X

M 1 TS X V 76.6 K L S E 39.8 X T R A 34.3 S W X 0. 8 X T R AS E 1 A MEX 68.5 A MEX 34.2 A MEX 27.9 O TCN O -1.1 A MEX -

N Y S E 1 H LS E 65.9 B S E 31.0 O T C P K 16.5 AI M -2.7 TS X -

OS E 1 O T C P K 65.8 TS X V 19.1 TS X V 12.0 TS X -4.3 O T C B B -

AI M 1 K L S E 39.8 O T C B B 12.8 AS X 8. 9 TS X V -4.6 O T C P K -

OM 1 B S E 31.0 AS X 11.0 H L S E 5. 5 H LS E -17.5 B S E -

T S 1 AS X 22.1 AI M 6. 0 O T C B B 2. 3 O T C P K -34.1 O TCN O -

K L S E 1 AI M 6. 0 O T C P K 6. 0 O TCN O 2. 3 B S E -41.4 AI MO TCN O 1 O TCN O 0. 1 O TCN O 0. 1 AI M 0. 0 O T C B B -62.4 H L S E

Grand Total 89 Grand Total 69,234.6 Grand Total 777.9 Grand Total 13,819.5 Grand Total 3,276.1 Grand Total

igure 22. Comparison by Exchange

ource. Capital IQ

8/14/2019 09-12-15 Web 2.0 Weekly

18/20

Page

Financing - Las t Three Months (US$ m)Fin. Amount (Million) Type of financingMonth C ompany Name C ountry Angel/Seed Series A S eries B Series C Series D Grand TotalO ct- 09 D ai lyM otio n F rance 25. 3 2

PopCap Games US A 22. 5

Engine Yard US A 19. 0

HubSpot US A 16. 0

Jive S oftware US A 12.0Spigit US A 10.0

Ooyala US A 10.0

ScanScout US A 8. 5

Box.net US A 7. 1

Reality Mobile US A 6.5

Watercooler US A 5. 5

Vdopia US A 4.7

Sometrics US A 4. 0

Amie Street US A 3. 9

ViVu US A 3.0

Fizzback UK 2. 6Technorati US A 2.0

Onehub US A 1.3

DataSync US A 1.2

DailyBooth US A 1. 0

Hot Potato US A 1.0

Linkedex UK 1. 0

StatusNet C anada 0. 9 0IngBoo US A 0. 8

Chango C anada 0.7 0

Credit Karma US A 0. 5

Listia US A 0. 4

Oct-09 Total 4.5 40.9 56.5 67.4 2.0 171.3

Nov-09 R oc kYou US A 50. 0

Playdom US A 43. 0

Sezmi US A 25. 0

Millennial Media US A 16. 0

Zynga US A 15. 0

Evernote US A 10.0

CubeTree US A 8. 0

Alice.com US A 6. 0

Eventbrite US A 6. 0

Placecast US A 5. 0

AppNexus US A 5. 0

Altruik US A 4.7Credit Karma US A 2.5Blekko US A 2.5

Playfire UK 2.1

SimpleGeo US A 1. 5Adfonic UK 0. 6

Scoopler US A 0. 5

Nov-09 Total 2.6 52.3 29.0 67.0 52.5 203.4

Dec -09 G roupon US A 30.0

Zoosk US A 30. 0

gWallet US A 12. 5

Movik Networks US A 8. 5

Gowalla US A 8. 4

Gogii US A 8. 2

SeekingAlpha Is rael 7. 0

Pageonce US A 6.5

Genius.comUS A 6.5

Smaato US A 4. 5

Tonchidot J apan 4.0 4

JanRain US A 3.3

StockTwits US A 3. 0Dec-09 Total 26.3 69.6 36.5 132.

Grand Total 7.1 119.5 155.1 134.4 91.0 507.0

igure 23. Financing, Last Three Months ource. Company reports

8/