Large deals drive July financing to near record levels: With another huge financing (DST - see below) July financing is near record monthly levels. Total raised month-to-date is $742.6 million over 29 deals - averaging $25.6 million each. Excluding the Zynga ($100 million) and DST ($388 million) deals, the average deal size is $9.4 million. In comparison, total capital raised in July 2009 was $209.0 million, averaging $5.2 million over 40 deals. The monthly median total is ~$280 million with a median deal size of $8.1 million. Deals (M&A, Finance) Naspers, a South African media and print conglomerate, invested $388 mm in Digital Sky Technologies, the Russian digital media holding company with significant stakes in Facebook, Groupon, Mail.ru, and Zynga. The next biggest raise of the week was Australian enterprise software developer, Atlassian, receiving $60 mm in Series A funds from Accel Partners. Social Commerce continues to garner attention – this week BlueSwarm ($0.8 mm angel round) and Shopkick ($15 mm Series B round) raised money. Another $31 mm in venture funds found their way to Advertising-related start-ups, including Israel-based Adsmarket ($17 mm), as well as a pair of India-based companies – Komli Media ($6 mm) and InMobi ($8 mm). Price performance split The Web 2.0 public company universe was split this week, with 48% of companies seeing their market cap fall vs. 43% rising and 9% flat.

1. Web 2.0 Weekly
“DST Cashing Up”
July 20, 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) – Major DST Financing
Naspers, a South African media and print conglomerate, invested $388 mm in Digital
Sky Technologies, the Russian digital media holding company with significant stakes in
Facebook, Groupon, Mail.ru, and Zynga.
The next biggest raise of the week was Australian enterprise software developer,
Atlassian, receiving $60 mm in Series A funds from Accel Partners.
Social Commerce continues to garner attention – this week BlueSwarm ($0.8 mm angel
round) and Shopkick ($15 mm Series B round) raised money.
Another $31 mm in venture funds found their way to Advertising-related start-ups,
including Israel-based Adsmarket ($17 mm), as well as a pair of India-based companies
– Komli Media ($6 mm) and InMobi ($8 mm).
Financial Results/Guidance/Partnerships/Product
Score Media (TSX:SCR, BUY, FTM price target: $1.25), Canadian sports
entertainment media concern and developer of the popular Score Mobile application for
iPhone, BlackBerry, and Android, reported strong Q3/F10 results, including total revenue
of $12.0 million (+10.8% Y/Y, +20.4% Q/Q, MRCC estimate: $11.5 million), EBITDA of
$2.0 million (+16.6% Y/Y, +79.1% Q/Q, MRCC: $1.8 million), EBITDA margin of 17.0%
(MRCC: 16.0%), and EPS of $0.01 – inline with our $0.01 estimate.
2 www.mackieresearch.com

3. Chart of the Week: DST Continues to Cash Up
800.0
DST has raised almost $700
700.0 688.0 mm this year as it continues
to make large investments in
Web 2.0 companies
600.0
500.0
400.0
300.0
247.0
200.0
135.0
100.0 60.0 50.0 50.0 44.0 40.0 38.5 35.0
0.0
Technologies
Zynga
LivingSocial
Groupon
Atlassian
Gilt Groupe
Glam Media
Tremor Media
Squarespace
Qiyi
Digital Sky
3 www.mackieresearch.com

4. Public Company Data
4 www.mackieresearch.com

5. Aggregate Public Data
Web 2.0 Public Companies Total Median Max Min
# Companies 102 - - -
Market Cap (US$ mm) 81,684.2 56.0 32,832.1 0.0
Revenue (US$ mm) 28,443.7 47.9 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) 17,042.9 2.8 6,535.8 -670.8
TEV/Revenue - 1.9x 43.5x 0.1x
TEV/EBITDA - 8.3x 48.9x 0.3x
P/E - 15.0x 94.5x 0.0x
Relative to 52 week high -42.2% -1.6% -93.3%
Source: CapitalIQ
5 www.mackieresearch.com

6. 6
0
5
10
15
20
25
30
Gaming
28
Social Networking
17
Media
10
9
Diversified
5
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

7. Valuation Dashboard – 1 Week
Market Cap EV/Revenue
Flat
9% Flat
2%
Falling
51%
Rising
43%
Falling
48% Rising
47%
EV/EBITDA P/E
Flat Flat
2% 3%
Falling
42%
Falling
38%
Rising
59%
Rising
56%
7 www.mackieresearch.com

8. 8
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
6/1/2009
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
Median EV/Revenue
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
Median
12/7/2009
12/14/2009
12/21/2009
12/28/2009
1/4/2010
1/11/2010
1/18/2010
1/25/2010
2/1/2010
2/8/2010
Long-term average
2/15/2010
2/22/2010
3/1/2010
3/8/2010
3/15/2010
3/22/2010
3/29/2010
4/5/2010
4/12/2010
average
4/19/2010
4/26/2010
well below LT
5/3/2010
5/10/2010
down slightly, still
Revenue multiples
5/17/2010
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
373939394040394242444546464646474951515150535656606161646666676464656971717274716770727370767578788179807878808084818484
www.mackieresearch.com

9. 9
Source: CapitalIQ
Multiple (x )
# companies
0. 0x
5. 0x
10. 0x
15. 0x
20. 0x
25. 0x
30. 0x
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
Median EV/EBITDA
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
Median
12/7/2009
12/14/2009
12/21/2009
12/28/2009
1/4/2010
1/11/2010
1/18/2010
1/25/2010
2/1/2010
2/8/2010
2/15/2010
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
4/26/2010
below LT average
5/3/2010
5/10/2010
5/17/2010
slightly, but still depressed
5/24/2010
EV/EBITDA multiples up-tick
5/31/2010
6/7/2010
6/14/2010
6/21/2010
6/28/2010
7/5/2010
7/12/2010
7/19/2010
19 21 21 22 22 21 21 22 23 22 21 23 23 25 25 25 25 25 24 25 26 28 31 29 32 34 35 37 40 38 39 37 39 40 39 38 38 41 42 41 41 41 41 41 43 43 45 44 44 50 49 48 49 50 50 48 49 47 49 49
www.mackieresearch.com

10. 10
Source: CapitalIQ
Multiple (x )
# companies
0. 0x
5. 0x
10. 0x
15. 0x
20. 0x
25. 0x
30. 0x
35. 0x
40. 0x
6/1/2009
6/8/2009
6/15/2009
Median P/E
6/22/2009
6/29/2009
7/6/2009
7/13/2009
7/20/2009
7/27/2009
8/3/2009
8/10/2009
8/17/2009
8/24/2009
8/31/2009
9/7/2009
9/14/2009
9/21/2009
9/28/2009
10/5/2009
10/12/2009
10/19/2009
10/26/2009
11/2/2009
11/9/2009
11/16/2009
11/23/2009
11/30/2009
Median
12/7/2009
12/14/2009
12/21/2009
12/28/2009
1/4/2010
1/11/2010
1/18/2010
1/25/2010
2/1/2010
2/8/2010
2/15/2010
Long-term average
2/22/2010
3/1/2010
3/8/2010
3/15/2010
3/22/2010
3/29/2010
average
4/5/2010
4/12/2010
4/19/2010
and still below LT
4/26/2010
5/3/2010
5/10/2010
P/E multiples also tick up
5/17/2010
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
20 19 18 18 18 19 19 19 20 19 18 19 19 18 19 20 23 24 24 24 25 26 26 26 30 31 32 30 33 33 34 34 37 38 38 38 38 39 40 41 39 39 39 37 36 37 34 33 32 35 35 35 35 35 35 36 36 32 33 33
www.mackieresearch.com

11. 11
-
5.0
10.0
15.0
20.0
25.0
30.0
35.0
# Companies 1
Virtual World
33.0
2
Infrastructure
13.4
9
Social Networking
9.2
7
Diversified
9.0
1
Learning
7.6
4
Mobile
4.9
2
Music
4.3
1
Search
4.0
Gaming
21
3.7
5
Marketing
3.4
3
SMS/Voice
3.3
1
Vertical Communities
3.3
Average EV/Revenue – by Sector
1
Podcasting
2.8
1
Collaboration
2.5
9
Media
2.3
3
Advertising
2.3
2
Internet Retail
1.9
3
Enterprise
1.8
1
Video
1.5
2
Dating
1.3
1
Financial Services
0.4
www.mackieresearch.com

12. Average EV/EBITDA – by Sector
45.0
41.3
40.0
35.0
30.0
25.0
20.0 18.3
16.4
15.0
12.7 12.2
10.8 10.1
9.2 9.0
10.0
6.9 6.6
5.0 4.0
-
Diversified
Advertising
Internet Retail
Search
Mobile
Enterprise
Gaming
Social Networking
Collaboration
Media
Marketing
Dating
# Companies 1 3 2 13 5 2 6 1 6 2 1 1
12 www.mackieresearch.com

13. Average P/E – by Sector
100.0
90.0 87.6
80.0
70.0
60.0 56.5
50.0
40.3
40.0 35.9
30.0
23.3
19.2
20.0
14.3 13.1 13.0
10.0 7.3
-
Internet Enterprise Collaboration Diversified Social Marketing Advertising Gaming Media Virtual World
Retail Networking
2 3 1 9 17 5 3 28 10 2
# Companies
13 www.mackieresearch.com

14. 14
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
43
Ac credited Members H olding C orporation
Source: CapitalIQ
36
Worlds .c om Inc .
26
S pec trumDNA, Inc .
S ocialG O P LC
25
17
T encent H oldings L td.
MO K O . mobi L imited
15 15
G eoS entric O y j
12
P aid Inc .
11
B ey ond C ommerce, Inc .
L ingo Media C orporation
C hines e G amer International
9 9 9
G ree, Inc .
7
DigitalP os t Interactive, Inc .
7
Mood Media C orporation
Dena C o. L td.
T rans G aming, Inc .
6 6 5
Ac celeriz e New Media, Inc.
5
HU G H E S T elematic s , Inc .
F rogs ter Interac tiv e P ic tures AG
C hangyou. com Limited
Mix i, Inc.
4 4 4 4
S K C ommunications C o., L td.
T aleo C orp.
K ings oft C orporation Limited
WebMediaB rands Inc
4 3 3 3
Motric ity , Inc .
is eemedia Inc .
Wiz z ard S oftware C orporation
EV/Revenue Ranking
3 3 3
O pen T ex t C orp.
eP ro L td.
Modern T imes G roup Mtg AB
H anbitS oft, Inc.
XING AG
NE O WIZ G ames C orporation
S ohu.c om Inc .
S core Media Inc.
U O MO Media, Inc
V elti P lc
S hutterfly, Inc.
P NI Digital Media Inc .
V alueC lick , Inc .
G ungH o O nline E ntertainment, Inc .
P latforma Mediowa P oint G roup S . A.
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Myriad G roup AG
NeuL ion Inc orporated
Webz en Inc.
G amania Digital E ntertainment C o., L td.
Accredited Members
Hutc his on T elec ommunic ations Hong
revenue multiple at 43x
Y D O nline C orp.
Holding Co. has highest
S park Network s , Inc .
U nilav a C orporation
2 1 1 1 1 1 1 1
S NAP Interactive, Inc .
Y nk K orea Inc.
NetDragon WebS oft, Inc.
AQ Interactive, Inc .
P oints International L td.
Internet G roup S A
O AO R B C Information S ys tems
O riented Media G roup B erhad
T he New Y ork T imes C ompany
IAC /InterAc tiv eC orp.
DADA S pA
Northgate T echnologies Limited
T heS treet. com, Inc .
U nited O nline, Inc .
Unis erve C ommunic ations C orp.
AO L, Inc.
C DC C orp.
G lu Mobile, Inc .
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
G igaMedia L td.
T ree. C om, Inc .
Actoz S oft C o., Ltd.
C y berplex Inc.
O penwav e S y s tems Inc.
R ealNetwork s Inc .
J umbuc k E ntertainment L imited
G ameO n C o L td.
As k net AG
Look S mart, L td.
0 0 0 0 0 0 0 0 0 0
DigitalT own, Inc.
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