1. Web 2.0 Weekly
“Strong Week in Web 2.0 M&A”
June 8, 2010
David Shore, CFA, MBA 416.860.6784
dshore@mackieresearch.com
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
Copyright © 2000-2010, Mackie Research Capital Corporation, All rights reserved www.mackieresearch.com

2. Key Developments (past week)
Deals (M&A, Finance) – Acquisitions the Key Feature in the Landscape
Google (Nasdaq:GOOG) acquired advertising analytics firm, Invite Media, for a
rumoured US$70 mm.
In the gaming sector, Challenge Games, the virtual goods funded game maker, was
acquired by Zynga for US$20.5 mm.
FetchBack, a post-customer interaction advertising platform, was acquired for US$40
mm by GSI Commerce.
The largest financing in the week outside of acquisitions was US$40 mm raised by
HauteLook, a Los Angeles-based luxury Internet retailer.
Financial Results/Guidance
Shanda Interactive (Nasdaq:SNDA), a Chinese diversified entertainment media
company, reported revenue decline of 16% Y/Y to RMB1,107 mm as the company’s
gaming revenues registered a decline.
2 www.mackieresearch.com

3. Public Company Data
3 www.mackieresearch.com

4. Aggregate Public Data
Web 2.0 Public Companies Total Median Max Min
# Companies 102 - - -
Market Cap (US$ mm) 78,702.4 66.4 34,512.6 1.4
Revenue (US$ mm) 23,227.2 55.2 3,057.7 0.0
1 Year revenue growth 5.0% 8961.6% -100.0%
EBITDA as % of revenue - 13.3% 63.1% -63.7%
Net cash (US$ mm) 8,902.1 1.8 1,826.4 -670.8
TEV/Revenue - 2.0x 42.8x 0.0x
TEV/EBITDA - 8.5x 48.9x 0.0x
P/E - 16.7x 81.3x 0.0x
Relative to 52 week high -40.7% 0.0% -95.6%
Source: CapitalIQ
4 www.mackieresearch.com

5. 5
0
5
10
15
20
25
30
Gaming
27
Social Networking
16
Media
10
7
Diversified
6
Marketing
5
Mobile
Source: CapitalIQ
3
Infrastructure
3
SMS/Voice
3
Enterprise
3
Advertising
2
Internet Retail
2
Virtual World
By Sector
2
Dating
2
Music
1
Vertical Communities
1
Collaboration
1
Podcasting
1
Learning
1
Video
1
Search
1
Payment
1
Financial Services
Public Company Distribution
0
5
10
15
20
25
30
35
40
45
United States
Canada
China
South Korea
Japan
Taiwan
Germany
Australia
United Kingdom
Hong Kong
Poland
Russia
By Country
Finland
Sweden
Malaysia
India
Italy
Switzerland
Israel
www.mackieresearch.com

6. Valuation Dashboard – 1 Week
Market Cap EV/Revenue
Flat
Flat
10%
2%
Rising
35%
Falling
56%
Rising
42%
Falling
55%
EV/EBITDA P/E
Flat Flat
2% 3%
Falling Falling
55% 53%
Rising Rising
43% 44%
6 www.mackieresearch.com

7. 7
Source: CapitalIQ
Multiple (x)
0.0x
0.5x
1.0x
1.5x
2.0x
2.5x
3.0x
3.5x
4.0x
4.5x
5.0x
# companies
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
Median EV/Revenue
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
Median
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
Long-term average
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
down fourth
3/22/2010
3/29/2010
consecutive week
Revenue multiples
4/5/2010
4/12/2010
4/19/2010
4/26/2010
5/3/2010
5/10/2010
5/17/2010
5/24/2010
5/31/2010
6/7/2010
393940414141414143454646474747484951515150545556616161626666666465667070707073727068717371777378777980818180828183858484
www.mackieresearch.com

8. 8
Source: CapitalIQ
Multiple (x)
# companies
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
30.0x
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
Median EV/EBITDA
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
Median
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
Long-term average
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
below LT average
remain depressed
3/22/2010
3/29/2010
EV/EBITDA multiples
4/5/2010
4/12/2010
4/19/2010
4/26/2010
5/3/2010
5/10/2010
5/17/2010
5/24/2010
5/31/2010
6/7/2010
2021 2223 23 2222 2224 2326 2324 2426 27 2726 2525 2628 3030 34 3535 3740 3839 3939 4142 39 3941 4342 4143 4443 44 4444 4545 4850 5053 5353 51 5249 5051
www.mackieresearch.com

9. 9
Source: CapitalIQ
Multiple (x)
# companies
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
30.0x
35.0x
4/20/2009
4/27/2009
5/4/2009
Median P/E
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
Median
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
Long-term average
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
below LT average
3/29/2010
P/E multiples also
4/5/2010
4/12/2010
4/19/2010
4/26/2010
5/3/2010
5/10/2010
5/17/2010
5/24/2010
5/31/2010
6/7/2010
1919 1818 19 1819 1820 2020 1819 1920 21 2425 2424 2526 2827 31 3232 3234 3435 3638 4040 39 4041 4142 3840 4041 38 3835 3333 3235 3536 3535 37 3432 3635
www.mackieresearch.com

10. 10
-
5.0
10.0
15.0
20.0
25.0
# Companies 2
Infrastructure
2
Music
7
Social Networking
1
Learning
5
Diversified
1
Vertical Communities
4
Mobile
3
SMS/Voice
6
Marketing
Gaming
21
1
Search
1
Collaboration
EV/Revenue
9
Media
3
Advertising
1
Podcasting
1
Video
2
Internet Retail
3
Enterprise
2
Dating
1
Financial Services
1
Virtual World
-
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
Average Valuation – by Sector
# Companies
1
Mobile
2
Enterprise
5
Diversified
2
Internet Retail
6
Media
1
Collaboration
5
Social Networking
EV/EBITDA
Gaming
14
3
Marketing
1
Dating
1
Advertising
www.mackieresearch.com

11. 11
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
RealNetworks Inc.
GameOn Co Ltd.
Cyberplex Inc.
Actoz Soft Co., Ltd.
Source: CapitalIQ
Openwave Systems Inc.
Jumbuck Entertainment Limited
Tree.Com, Inc.
GigaMedia Ltd.
Glu Mobile, Inc.
Northgate Technologies Limited
Points International Ltd.
DADA SpA
Uniserve Communications Corp.
AOL, Inc.
0.20.2 0.20.30.30.30.4 0.60.60.60.60.6 0.70.70.7
CDC Corp.
United Online, Inc.
IAC/InterActiveCorp.
The New York Times Company
TheStreet.com, Inc.
NetDragon WebSoft, Inc.
Internet Group SA
CornerWorld Corporation
OAO RBC Information Systems
AQ Interactive, Inc.
HanbitSoft, Inc.
infoGROUP, Inc.
EV/Revenue Ranking
Hutchison Telecommunications Hong Kong
SNAP Interactive, Inc.
Oriented Media Group Berhad
NeuLion Incorporated
Gamania Digital Entertainment Co., Ltd. 0.80.80.80.80.8 1.0 1.0 1.0 1.1 1.2 1.3 1.3 1.4 1.4 1.4 1.5 1.5
Spark Networks, Inc.
Shutterfly, Inc.
ValueClick, Inc.
GungHo Online Entertainment, Inc.
Platforma Mediowa Point Group S.A.
Score Media Inc.
UOMO Media, Inc
PNI Digital Media Inc.
Sohu.com Inc.
Modern Times Group Mtg AB
Velti Plc
Webzen Inc.
XING AG
1.7 1.7 1.8 1.9 2.02.0 2.12.12.12.22.2 2.22.2
NEOWIZ Games Corporation
Open Text Corp.
Frogster Interactive Pictures AG
Wizzard Software Corporation
iseemedia Inc.
Unilava Corporation
ePro Ltd.
Myriad Group AG
Kingsoft Corporation Limited
2.62.62.8 2.9 3.03.0 3.13.33.3
Taleo Corp.
Mixi, Inc.
SK Communications Co., Ltd.
revenue multiple at 42.8x
SpectrumDNA has highest
3.53.9 4.1
Changyou.com Limited
WebMediaBrands Inc
Fluid Music Canada, Inc.
4.74.9 5.2
Accelerize New Media, Inc.
5.6
HUGHES Telematics, Inc.
DigitalPost Interactive, Inc.
7.5 7.9
TransGaming, Inc.
Dena Co. Ltd.
Gree, Inc.
Lingo Media Corporation
9.79.910.0
Chinese Gamer International
10.4
GeoSentric Oyj
Beyond Commerce, Inc.
MOKO.mobi Limited
11.811.912.0
Paid Inc.
12.7
Tencent Holdings Ltd.
18.1
Bright Things plc
31.4
SpectrumDNA, Inc.
32.7
Worlds.com Inc.
42.8
www.mackieresearch.com

12. 12
0.0
10.0
20.0
30.0
40.0
50.0
60.0
AOL, Inc.
Cyberplex Inc.
2.1 3.1
Source: CapitalIQ
United Online, Inc.
NetDragon WebSoft, Inc.
The New York Times Company
Sohu.com Inc.
3.8 4.4 4.9 4.9
Hutchison Telecommunications Hong Kong Holdings
5.4
Ltd.
CDC Corp.
ValueClick, Inc.
Changyou.com Limited
infoGROUP, Inc.
Uniserve Communications Corp.
GungHo Online Entertainment, Inc.
EV/EBITDA Ranking
Spark Networks, Inc. 6.1 6.2 6.5 6.7 6.9 7.3 7.5
DADA SpA
Kingsoft Corporation Limited
NEOWIZ Games Corporation
PNI Digital Media Inc.
Velti Plc
XING AG
Gamania Digital Entertainment Co., Ltd.
7.7 7.8 7.9 8.4 8.5 8.7 8.8
Open Text Corp.
IAC/InterActiveCorp.
Platforma Mediowa Point Group S.A.
9.3 9.5 10.6
Openwave Systems Inc.
11.3
Score Media Inc.
at 48.9x
Shutterfly, Inc.
HanbitSoft, Inc.
TheStreet.com, Inc.
12.7 12.8 13.2 13.8
Mixi, Inc.
Tree.com leads the group
Modern Times Group Mtg AB
14.6 15.0
Frogster Interactive Pictures AG
Gree, Inc.
16.2 17.3
Chinese Gamer International
20.4
Dena Co. Ltd.
22.5
Taleo Corp.
24.7
Tencent Holdings Ltd.
34.8
SK Communications Co., Ltd.
41.3
Points International Ltd.
46.3
Tree.Com, Inc.
48.9
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Excluding EV/EBITDA > 100x