Deals (M&A, Finance) Jive Software received the biggest investment of the week at $30 mm, bringing its total capital raised to date to $57 mm – the company brings social network-like functions to the realm of enterprise collaboration. Advertising networks continue to receive the most attention among sectors we track – this week, $24.6 mm in financings were announced, including sports-related ad network Sportgenic (acquired by Glam Media for $12 mm), and TurnHere ($12.6mm in Series B funds). Rumour alert – we continue to hear more frequent buzz concerning the potential acquisition of social gaming developer Playdom by Disney. Synchronica (AIM:SYNC) intends to acquire iseemedia (TSXV:IEE) for C$8.8 mm in stock – both companies are engaged in mobile communications development, such as email-to-SMS. Price performance turns positive The Web 2.0 public company universe was positive this week, with 54% of companies seeing their market cap rise vs. 34% falling and 12% flat.

1. Web 2.0 Weekly
“July Financings – Approaching High for 2010”
July 27, 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) – Jive – the Social Enterprise
Jive Software received the biggest investment of the week at $30 mm, bringing its total
capital raised to date to $57 mm – the company brings social network-like functions to
the realm of enterprise collaboration.
Advertising networks continue to receive the most attention among sectors we track –
this week, $24.6 mm in financings were announced, including sports-related ad network
Sportgenic (acquired by Glam Media for $12 mm), and TurnHere ($12.6mm in Series
B funds).
Rumour alert – we continue to hear more frequent buzz concerning the potential
acquisition of social gaming developer Playdom by Disney.
Synchronica (AIM:SYNC) intends to acquire iseemedia (TSXV:IEE) for C$8.8 mm in
stock – both companies are engaged in mobile communications development, such as
email-to-SMS.
Financial Results/Guidance/Partnerships/Product
Online gaming in China is big business: Sohu.com (parent company of
Changyou.com and leading online gaming provider in China) reported Q2/F10 results,
including revenue of $146 mm (+15% Y/Y), operating profit of $51.2 mm (+6% Y/Y),
operating margin of 35.0% (Q2/F09: 38.1%), and EPS of $0.82 (Q2/F09: $0.79).
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) 83,771.6 50.2 32,565.7 0.0
Revenue (US$ mm) 28,481.4 43.9 6,736.1 0.0
1 Year revenue growth 1.9% 8961.6% -100.0%
EBITDA as % of revenue - 8.3% 63.1% -99.5%
Net cash (US$ mm) 17,044.9 2.9 6,535.8 -670.8
TEV/Revenue - 1.8x 42.3x 0.0x
TEV/EBITDA - 8.5x 40.6x 0.1x
P/E - 16.1x 99.9x 0.0x
Relative to 52 week high -42.8% 0.0% -93.3%
Source: CapitalIQ
4 www.mackieresearch.com

5. 5
0
5
10
15
20
25
30
Gaming
28
Social Networking
16
Media
10
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

6. Valuation Dashboard – 1 Week
Market Cap EV/Revenue
Flat Flat
12% 6%
Falling
41%
Rising
Falling 54%
34%
Rising
53%
EV/EBITDA P/E
Flat Flat
Falling 2% 6%
31%
Falling
38% Rising
56%
Rising
67%
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
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
Median EV/Revenue
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
Median
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
Long-term average
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
average
4/26/2010
5/3/2010
well below LT
5/10/2010
5/17/2010
down slightly, still
Revenue multiples
5/24/2010
5/31/2010
6/7/2010
6/14/2010
6/21/2010
6/28/2010
7/5/2010
7/12/2010
7/19/2010
7/26/2010
383939394040394242444546464546474951515052535658616161636666666566667071707274716871707173747679788179807978808284828384
www.mackieresearch.com

8. 8
Source: CapitalIQ
Multiple (x )
# companies
0. 0x
5. 0x
10. 0x
15. 0x
20. 0x
25. 0x
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
Median EV/EBITDA
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
Median
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
Long-term average
3/1/2010
3/8/2010
3/15/2010
3/22/2010
3/29/2010
4/5/2010
average
4/12/2010
4/19/2010
4/26/2010
5/3/2010
5/10/2010
5/17/2010
this week, still below LT
5/24/2010
EV/EBITDA multiples down
5/31/2010
6/7/2010
6/14/2010
6/21/2010
6/28/2010
7/5/2010
7/12/2010
7/19/2010
7/26/2010
19 21 21 22 22 21 21 23 23 22 22 23 23 25 25 25 25 24 24 25 26 28 29 31 32 34 35 37 40 38 39 38 39 40 38 38 38 41 42 40 41 41 41 40 42 43 46 45 44 50 49 48 50 49 49 49 49 48 49 50
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
6/8/2009
6/15/2009
6/22/2009
Median P/E
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
Median
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
Long-term average
3/1/2010
3/8/2010
3/15/2010
3/22/2010
3/29/2010
4/5/2010
4/12/2010
LT average
4/19/2010
4/26/2010
5/3/2010
5/10/2010
5/17/2010
2nd week), but still below
P/E multiples tick up (for
5/24/2010
5/31/2010
6/7/2010
6/14/2010
6/21/2010
6/28/2010
7/5/2010
7/12/2010
7/19/2010
7/26/2010
19 19 18 18 19 19 19 20 20 19 18 19 19 19 19 20 24 23 24 24 25 26 26 28 30 31 31 31 32 32 34 36 37 38 38 38 38 39 40 41 39 39 39 37 36 37 34 33 32 35 35 35 35 35 35 36 34 32 33 34
www.mackieresearch.com

10. 10
-
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
# Companies 2
Infrastructure
13.5
2
Virtual World
13.3
9
Social Networking
10.0
1
Learning
7.9
4
Mobile
5.1
2
Music
4.7
6
Diversified
3.9
Gaming
21
3.7
1
Search
3.6
1
Vertical Communities
3.0
5
Marketing
2.9
1
Podcasting
2.8
Average EV/Revenue – by Sector
3
SMS/Voice
2.6
1
Collaboration
2.6
3
Advertising
2.2
9
Media
2.2
2
Internet Retail
2.0
3
Enterprise
1.9
1
Video
1.5
2
Dating
1.4
1
Financial Services
0.4
www.mackieresearch.com

11. Average EV/EBITDA – by Sector
45.0
40.0 38.8
35.0
30.0
25.0
19.2
20.0 18.1
15.0
12.5 12.3 11.6 11.1
9.4 9.4
10.0
7.0 6.9
5.0 3.9
-
Diversified
Advertising
Internet Retail
Search
Mobile
Enterprise
Gaming
Social Networking
Collaboration
Media
Marketing
Dating
# Companies 1 3 2 5 13 2 6 1 6 2 1 1
11 www.mackieresearch.com

12. Average P/E – by Sector
120.0
100.0 95.6
80.0
60.0 55.7
41.3
40.0 37.1
25.9
19.2
20.0
14.3 14.1 13.4
7.6
-
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
45.0
42
Ac credited Members H olding C orporation
Source: CapitalIQ
32
S ocialG O P LC
27
Worlds .c om Inc .
26
S pec trumDNA, Inc .
17
T encent H oldings L td.
MO K O . mobi L imited
15 15
G eoS entric O y j
11
G ree, Inc .
P aid Inc .
B ey ond C ommerce, Inc .
10 10 10
C hines e G amer International
8
L ingo Media C orporation
Mood Media C orporation
7 7
DigitalP os t Interactive, Inc .
T rans G aming, Inc .
7 6
Dena C o. L td.
Ac celeriz e New Media, Inc.
5 5
HU G H E S T elematic s , Inc .
Mix i, Inc.
C hangyou. com Limited
F rogs ter Interac tiv e P ic tures AG
4 4 4 4
T aleo C orp.
S K C ommunications C o., L td.
4 3
K ings oft C orporation Limited
WebMediaB rands Inc
Motric ity , Inc .
Wiz z ard S oftware C orporation
O pen T ex t C orp.
EV/Revenue Ranking
3 3 3 3 2
eP ro L td.
Modern T imes G roup Mtg AB
S ohu.c om Inc .
XING AG
S hutterfly, Inc.
NE O WIZ G ames C orporation
S core Media Inc.
U O MO Media, Inc
V elti P lc
V alueC lick , Inc .
H anbitS oft, Inc.
Myriad G roup AG
2 2 2 2 2 2 2 2 2 2 2 2
P NI Digital Media Inc .
G ungH o O nline E ntertainment, Inc .
P latforma Mediowa P oint G roup S . A.
NeuL ion Inc orporated
is eemedia Inc .
Webz en Inc.
S NAP Interactive, Inc .
Accredited Members
S park Network s , Inc .
revenue multiple at 42x
G amania Digital E ntertainment C o., L td.
Holding Co. has highest
Hutc his on T elec ommunic ations Hong
U nilav a C orporation
Y D O nline C orp.
2 2 2 2 1 1 1 1 1 1 1 1
NetDragon WebS oft, Inc.
Y nk K orea Inc.
O riented Media G roup B erhad
AQ Interactive, Inc .
Internet G roup S A
IAC /InterAc tiv eC orp.
O AO R B C Information S ys tems
T heS treet. com, Inc .
T he New Y ork T imes C ompany
P oints International L td.
U nited O nline, Inc .
DADA S pA
Northgate T echnologies Limited
C DC C orp.
Unis erve C ommunic ations C orp.
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
AO L, Inc.
G lu Mobile, Inc .
G igaMedia L td.
T ree. C om, Inc .
O penwav e S y s tems Inc.
C y berplex Inc.
R ealNetwork s Inc .
Actoz S oft C o., Ltd.
J umbuc k E ntertainment L imited
Look S mart, L td.
As k net AG
1 1 0 0 0 0 0 0 0 0 0
G ameO n C o L td.
0
Ngi G roup Inc .
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