May tracking to average monthly levels: After a slow start to the month, financing in the Web 2.0 universe has rebounded and is now on track with prior months. Total transaction value (excluding M&A) in the Web 2.0 universe for May (month-to-date) is $189.9 million from 30 transactions, averaging $6.3 million each. In comparison, total capital raised in May 2009 was $375.0 million, averaging $12.5 million over 30 deals. Excluding May 09, Dec 09 and Apr 10, the average monthly total is $212 million. Deals (M&A, Finance) Cyberplex (TSX:CX) announced plans to acquire Tsavo Media for US$75.6 mm, partially funded through a C$30 mm bought deal financing at $0.55. Online gaming company Gaikai, raised $10.0 mm in Series B financing. Blip.TV, online TV provider, raised $10.1 mm in Series C financing. Financial Results/Guidance Netease.com (NasdaqGS:NTES, online gaming) reported Q1/F10 revenue of RMB 1.2 bn (vs. RMB 781.7 mm in the same period last year). Snap Interactive (OTCBB:STVI, online dating) reported Q1/F10 revenue growth of 20% to $0.927 mm from $0.768 mm. Bearish week again: Price performance was largely negative in our Web 2.0 universe. This impacted valuation multiples, which fell for ~80% of the companies in our universe.

1. Web 2.0 Weekly
“Market Declines Impact Web 2.0 Universe Valuations”
May 26, 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)
Cyberplex (TSX:CX) announced plans to acquire Tsavo Media for US$75.6 mm,
partially funded through a C$30 mm bought deal financing at $0.55.
Online gaming company Gaikai, raised $10.0 mm in Series B financing.
Blip.TV, online TV provider, raised $10.1 mm in Series C financing.
Financial Results/Guidance
Netease.com (NasdaqGS:NTES, online gaming) reported Q1/F10 revenue of RMB 1.2
bn (vs. RMB 781.7 mm in the same period last year).
Snap Interactive (OTCBB:STVI, online dating) reported Q1/F10 revenue growth of 20%
to $0.927 mm from $0.768 mm.
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) 76,398.3 58.8 33,384.2 1.7
Revenue (US$ mm) 23,069.7 58.3 3,057.7 0.0
1 Year revenue growth 5.5% 857.0% -91.4%
EBITDA as % of revenue - 13.3% 63.1% -75.0%
Net cash (US$ mm) 9,067.7 2.0 1,826.7 -670.8
TEV/Revenue - 1.9x 37.3x 0.0x
TEV/EBITDA - 9.2x 45.0x 0.0x
P/E - 15.0x 82.6x 0.0x
Relative to 52 week high -41.9% -4.7% -96.3%
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
5% 3%
Rising
20%
Falling
62% Rising
33% Falling
77%
EV/EBITDA P/E
Flat Flat
2% 0%
Rising
Rising
17%
20%
Falling
Falling 80%
81%
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
4/7/2009
4/14/2009
4/21/2009
4/28/2009
5/5/2009
5/12/2009
5/19/2009
5/26/2009
6/2/2009
6/9/2009
6/16/2009
6/23/2009
6/30/2009
7/7/2009
7/14/2009
7/21/2009
Median EV/Revenue
7/28/2009
8/4/2009
8/11/2009
8/18/2009
8/25/2009
9/1/2009
9/8/2009
9/15/2009
9/22/2009
9/29/2009
10/6/2009
Median
10/13/2009
10/20/2009
10/27/2009
11/3/2009
11/10/2009
11/17/2009
11/24/2009
12/1/2009
12/8/2009
12/15/2009
Long-term average
12/22/2009
12/29/2009
1/5/2010
1/12/2010
1/19/2010
1/26/2010
2/2/2010
2/9/2010
2/16/2010
2/23/2010
3/2/2010
down fourth
3/9/2010
3/16/2010
consecutive week
Revenue multiples
3/23/2010
3/30/2010
4/6/2010
4/13/2010
4/20/2010
4/27/2010
5/4/2010
5/11/2010
5/18/2010
5/25/2010
393940404041414043434546474746474850515150525354565859596164646463646468696870716965707170707375787780787879788081848281
www.mackieresearch.com

8. 8
Source: CapitalIQ
Multiple (x )
# companies
0. 0x
5. 0x
10. 0x
15. 0x
20. 0x
25. 0x
4/7/2009
4/14/2009
4/21/2009
4/28/2009
5/5/2009
5/12/2009
5/19/2009
5/26/2009
6/2/2009
6/9/2009
6/16/2009
6/23/2009
6/30/2009
7/7/2009
Median EV/EBITDA
7/14/2009
7/21/2009
7/28/2009
8/4/2009
8/11/2009
8/18/2009
8/25/2009
9/1/2009
9/8/2009
9/15/2009
9/22/2009
9/29/2009
10/6/2009
Median
10/13/2009
10/20/2009
10/27/2009
11/3/2009
11/10/2009
11/17/2009
11/24/2009
12/1/2009
12/8/2009
12/15/2009
12/22/2009
Long-term average
12/29/2009
1/5/2010
1/12/2010
1/19/2010
1/26/2010
2/2/2010
2/9/2010
2/16/2010
2/23/2010
3/2/2010
below LT average
3/9/2010
remain depressed
3/16/2010
EV/EBITDA multiples
3/23/2010
3/30/2010
4/6/2010
4/13/2010
4/20/2010
4/27/2010
5/4/2010
5/11/2010
5/18/2010
5/25/2010
20 20 22 22 23 23 22 22 24 24 23 23 24 24 26 26 26 26 25 25 26 27 29 30 32 33 35 36 38 41 39 40 39 40 41 39 39 39 42 43 41 41 43 43 42 43 44 47 46 45 51 51 50 53 53 52 53 53 50 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
4/7/2009
4/14/2009
4/21/2009
Median P/E
4/28/2009
5/5/2009
5/12/2009
5/19/2009
5/26/2009
6/2/2009
6/9/2009
6/16/2009
6/23/2009
6/30/2009
7/7/2009
7/14/2009
7/21/2009
7/28/2009
8/4/2009
8/11/2009
8/18/2009
8/25/2009
9/1/2009
9/8/2009
9/15/2009
9/22/2009
9/29/2009
10/6/2009
Median
10/13/2009
10/20/2009
10/27/2009
11/3/2009
11/10/2009
11/17/2009
11/24/2009
12/1/2009
12/8/2009
12/15/2009
12/22/2009
Long-term average
12/29/2009
1/5/2010
1/12/2010
1/19/2010
1/26/2010
2/2/2010
2/9/2010
2/16/2010
2/23/2010
3/2/2010
3/9/2010
3/16/2010
below LT average
P/E multiples also
3/23/2010
3/30/2010
4/6/2010
4/13/2010
4/20/2010
4/27/2010
5/4/2010
5/11/2010
5/18/2010
5/25/2010
19 19 19 18 18 19 19 19 20 20 19 18 19 19 20 20 21 25 24 25 25 26 27 26 28 30 31 32 31 32 32 34 35 37 38 38 38 38 39 40 41 39 39 39 37 36 37 33 32 31 34 34 34 34 34 34 34 33 31 35
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
L ook S mart, L td.
As k net AG
C y berplex Inc.
Actoz S oft C o. , Ltd.
Source: CapitalIQ
J umbuc k E ntertainment L imited
0.10.10.20.20.20.3
R ealNetwork s Inc.
T ree. C om, Inc.
O penwav e S y s tems Inc .
S NAP Interac tive, Inc .
G lu Mobile, Inc .
Northgate T echnologies Limited
P oints International L td.
G igaMedia L td.
AO L, Inc .
DADA S pA
C DC C orp.
Unis erv e C ommunications C orp.
AQ Interactive, Inc.
Internet G roup S A
IAC /InterActiv eC orp.
United O nline, Inc .
T heS treet.c om, Inc .
T he New Y ork T imes C ompany
NetDragon WebS oft, Inc.
O AO R B C Information S ys tems
C ornerWorld C orporation
EV/Revenue Ranking
0.40.4 0.5 0.50.60.6 0.6 0.70.70.70.70.7 0.70.80.80.80.80.9 0.9 1.0 1.0
H anbitS oft, Inc .
H utc his on T elecommunic ations H ong
infoG R O U P , Inc .
S park Network s , Inc.
G amania Digital E ntertainment C o., Ltd.
O riented Media G roup B erhad
NeuLion Inc orporated
1.2 1.3 1.4 1.4 1.4 1.4 1.5
G ungHo O nline E ntertainment, Inc.
V alueC lick , Inc.
S hutterfly , Inc .
S c ore Media Inc.
P latforma Mediowa P oint G roup S . A.
Webz en Inc .
Modern T imes G roup Mtg AB
XING AG
S ohu.c om Inc.
P NI Digital Media Inc.
1.7 1.7 1.8 1.9 2.02.02.0 2.12.2 2.3
U O MO Media, Inc
Wiz z ard S oftware C orporation
O pen T ex t C orp.
S K C ommunic ations C o. , Ltd.
is eemedia Inc.
F rogs ter Interac tiv e P ic tures AG
eP ro Ltd.
My riad G roup AG
2.6 2.72.92.93.0 3.13.1
NE O WIZ G ames C orporation
T aleo C orp.
Mix i, Inc.
3.4 3.53.63.9
K ings oft C orporation Limited
C hangyou. com Limited
revenue multiple at 37.3x
SpectrumDNA has highest
U nilav a C orporation
WebMediaB rands Inc
4.14.24.3 4.4
F luid Mus ic C anada, Inc.
L ingo Media C orporation
HU G H E S T elematic s , Inc .
5.4 5.5 5.8
Ac celeriz e New Media, Inc .
V elti P lc
6.26.3
DigitalP os t Interactiv e, Inc.
G ree, Inc.
7.9 8.4
Dena C o. L td.
8.8
T rans G aming, Inc.
C hines e G amer International
G eoS entric O y j
11.211.8
MO K O . mobi Limited
12.8
B ey ond C ommerc e, Inc.
14.5
P aid Inc.
T enc ent H oldings L td.
17.417.5
B right T hings plc
25.7
S pectrumDNA, Inc .
37.3
www.mackieresearch.com

12. 12
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
C y berplex Inc.
AO L , Inc .
1. 5 2.1
Source: CapitalIQ
United O nline, Inc .
NetDragon WebS oft, Inc.
H utc his on T elec ommunications H ong K ong H oldings
3. 9 4.6 5. 0
L td.
S ohu.c om Inc.
T he New Y ork T imes C ompany
V alueC lic k , Inc.
G ungH o O nline E ntertainment, Inc .
C DC C orp.
5.0 5. 1 6. 1 6. 2 6. 2
C hangy ou.c om L imited
S park Network s , Inc.
infoG R O U P , Inc .
6.5 6. 5 6.7
EV/EBITDA Ranking
U nis erve C ommunic ations C orp.
XING AG
G amania Digital E ntertainment C o., L td.
7. 5 8.1 8. 1
P NI Digital Media Inc.
DADA S pA
K ings oft C orporation L imited
IAC /InterAc tiveC orp.
O pen T ex t C orp.
8. 9 8. 9 9. 2 9.6 9. 7
P latforma Mediowa P oint G roup S . A.
H anbitS oft, Inc .
S c ore Media Inc.
10. 9 11.2 11. 5
NE O WIZ G ames C orporation
S hutterfly , Inc.
45.0x
G ree, Inc.
12.6 13.1 13. 8
T heS treet.c om, Inc .
13.9
Modern T imes G roup Mtg AB
O penwave S y s tems Inc .
Points leads the group at
G igaMedia L td.
Mix i, Inc.
14. 2 14.4 14. 9 15.2
F rogs ter Interactive P ic tures AG
Dena C o. L td.
18. 5 19. 3
C hines e G amer International
22. 0
T aleo C orp.
26. 1
V elti P lc
30.4
T enc ent H oldings L td.
33. 7
S K C ommunic ations C o. , L td.
P oints International L td.
44.2 45. 0
www.mackieresearch.com
Excluding EV/EBITDA > 100x