Deals (M&A, Finance) – Consolidation by Google
Google confirmed or announced two acquisitions during the week, including Jambool
($70 mm) involved in virtual goods monetization processes, and widget market, Slide
($182 mm).
In other acquisition-related news, Forbes sold investment media website Investopedia to ValueClick for $42 mm. Zynga acquired Japanese mobile app and game developer,
Unoh, for an estimated $29 mm. Finally, dubbed “the Spanish Facebook,” social
networking site, Tuenti, was acquired by Telefonica in a $99 mm deal.
The largest financing (aside from the aforementioned M&A activity) involved “the
Chinese Youtube,” Tudou, raising $50 mm in Series E funds.
Price Performance
Distinctly negative price momentum, with 49% of stocks falling over the past week (after 48% of stocks declines last week, and 51% declined the week prior).
2. Key Developments (past week)
Deals (M&A, Finance) – Consolidation by Google
Google confirmed or announced two acquisitions during the week, including Jambool
($70 mm) involved in virtual goods monetization processes, and widget market, Slide
($182 mm).
In other acquisition-related news, Forbes sold investment media website Investopedia
to ValueClick for $42 mm. Zynga acquired Japanese mobile app and game developer,
Unoh, for an estimated $29 mm. Finally, dubbed “the Spanish Facebook,” social
networking site, Tuenti, was acquired by Telefonica in a $99 mm deal.
The largest financing (aside from the aforementioned M&A activity) involved “the
Chinese Youtube,” Tudou, raising $50 mm in Series E funds.
Financial Results/Guidance/Partnerships/Product
Geo-location search app maker, Multiplied Media (TSXV:MMC), made two product and
distribution announcements – (1) the gasoline station search function on Poynt (the
company’s GPS location-based search app) was extended to the iPhone and iPod
Touch versions, and (2) the company (through subsidiary, UnoMobi) extended its email-
to-SMS service for legacy phones to over 20 million Globe Telecom subscribers in the
Philippines.
2 www.mackieresearch.com
4. Aggregate Public Data
Web 2.0 Public Companies Total Median Max Min
# Companies 102 - - -
Market Cap (US$ mm) 86,452.0 49.4 36,187.5 0.0
Revenue (US$ mm) 28,694.2 43.9 6,877.0 0.0
1 Year revenue growth 1.9% 8961.6% -100.0%
EBITDA as % of revenue - 8.8% 63.2% -99.5%
Net cash (US$ mm) 17,385.8 2.9 6,672.5 -670.2
TEV/Revenue - 1.7x 37.6x 0.1x
TEV/EBITDA - 8.5x 38.4x 0.4x
P/E - 16.5x 92.6x 0.0x
Relative to 52 week high -41.4% -1.0% -93.5%
Source: CapitalIQ
4 www.mackieresearch.com
5. 5
0
5
10
15
20
25
30
Gaming
28
Social Networking
16
10
Media
9
Diversified
6
Mobile
5
Marketing
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
Search
1
Podcasting
1
Learning
1
Video
1
Collaboration
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
Hong Kong
Germany
Poland
Australia
United Kingdom
By Country
Italy
Finland
Sweden
India
Russia
Malaysia
Switzerland
www.mackieresearch.com
10. 10
-
5.0
10.0
15.0
20.0
25.0
30.0
35.0
# Companies 2
Virtual World
32.4
9
Social Networking
9.4
2
Infrastructure
8.9
1
Learning
7.9
4
Mobile
5.0
2
Music
4.7
6
Diversified
4.2
5
Marketing
3.8
Gaming
21
3.7
1
Search
3.6
1
Vertical Communities
3.0
1
Podcasting
2.8
Average EV/Revenue – by Sector
1
Collaboration
2.5
3
SMS/Voice
2.5
9
Media
2.3
3
Advertising
2.1
2
Internet Retail
1.9
3
Enterprise
1.7
2
Dating
1.5
1
Video
1.4
1
Financial Services
0.5
www.mackieresearch.com
11. Average EV/EBITDA – by Sector
45.0
40.0 38.4
35.0
30.0
25.0
20.0
16.8
14.8
15.0 13.2
12.3 11.8 11.2
9.9
10.0 9.1
7.0 6.8
4.3
5.0
-
Diversified
Advertising
Internet Retail
Search
Enterprise
Mobile
Media
Gaming
Social Networking
Collaboration
Marketing
Dating
# Companies 1 2 3 5 6 13 2 6 1 2 1 1
11 www.mackieresearch.com
12. Average P/E – by Sector
100.0
92.6
90.0
80.0
70.0
60.0
54.6
50.0
39.9
40.0 37.6
30.0
23.0
20.6
20.0 16.0 15.0
13.3
10.0 7.4
-
Internet Enterprise Collaboration Diversified Social Marketing Media Advertising Gaming Virtual World
Retail Networking
2 3 1 9 16 5 10 3 28 2
# Companies
12 www.mackieresearch.com
13. 13
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
38
Acc redited Members H olding C orporation
Source: CapitalIQ
Worlds . com Inc.
32 32
S oc ialG O P LC
19
T enc ent H oldings L td.
MO K O .mobi Limited
17 17
S pec trumDNA, Inc .
15
G eoS entric O yj
14
P aid Inc.
B ey ond C ommerc e, Inc .
G ree, Inc.
10 10 9
C hines e G amer International
DigitalP os t Interac tiv e, Inc .
9 8
T rans G aming, Inc .
8
L ingo Media C orporation
7
Mood Media C orporation
Ac celeriz e New Media, Inc.
Dena C o. L td.
5 5 5
HU G H E S T elematics , Inc .
F rogs ter Interac tiv e P ictures AG
C hangy ou.c om L imited
4 4 4
Mix i, Inc.
T aleo C orp.
S K C ommunic ations C o. , L td.
4 4 3
K ings oft C orporation L imited
WebMediaB rands Inc
Wiz z ard S oftware C orporation
Motricity, Inc.
S ohu. com Inc.
EV/Revenue Ranking
3 3 3 3 3
O pen T ex t C orp.
Modern T imes G roup Mtg AB
eP ro Ltd.
V elti P lc
XING AG
NE O WIZ G ames C orporation
My riad G roup AG
S c ore Media Inc.
P NI Digital Media Inc .
U O MO Media, Inc
S hutterfly, Inc.
P latforma Mediowa P oint G roup S . A.
H anbitS oft, Inc.
V alueC lic k , Inc.
H utc his on T elec ommunic ations H ong K ong H oldings L td.
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
G ungH o O nline E ntertainment, Inc .
S NAP Interac tiv e, Inc .
NeuL ion Inc orporated
S park Network s , Inc.
Accredited Members
is eemedia Inc.
revenue multiple at 38x
U nilava C orporation
Holding Co. has highest
G amania Digital E ntertainment C o. , L td.
Y D O nline C orp.
NetDragon WebS oft, Inc.
Y nk K orea Inc.
2 1 1 1 1 1 1 1 1 1
Webz en Inc.
O AO R B C Information S y s tems
AQ Interac tiv e, Inc.
O riented Media G roup B erhad
Internet G roup S A
T heS treet.c om, Inc.
P oints International L td.
IAC /InterActiveC orp.
Northgate T ec hnologies L imited
T he New Y ork T imes C ompany
AO L, Inc.
DADA S pA
U nis erv e C ommunications C orp.
U nited O nline, Inc .
C DC C orp.
G lu Mobile, Inc .
T ree.C om, Inc .
G igaMedia Ltd.
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 0
C y berplex Inc.
Actoz S oft C o., Ltd.
O penwave S y s tems Inc.
J umbuc k E ntertainment Limited
R ealNetwork s Inc.
As k net AG
G ameO n C o L td.
L ook S mart, L td.
0 0 0 0 0 0 0 0
T hwapr, Inc.
www.mackieresearch.com