1. Web 2.0 Weekly
“What Recession? Online Luxury Heats Up”
May 18, 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) – Online Luxury – Hot Sector in a Poorer World
 Booyah (virtual world operator) raised $20 mm in Series C financing.
 Social media brand and charity promoter, SocialVibe, raised an $11.7 mm financing
round.
 Activity in the online luxury retail space headed up this week with Brandsclub (Brazilian
luxury flash retailer) in a $17 mm funding and Gilt Groupe raising $35 mm.
Financial Results/Guidance
 Fluid Music (TSX:FMN, digital music distributor) reported Q1/F10 revenue of $15.9 mm
(vs. $1.3 mm in the same period last year) and EPS of ($0.06) vs. ($0.03) in Q1/F09.
 Points International (TSX:PTS, rewards program manager) reported strong revenue
growth – up 11% Y/Y to $23.5 mm, and break-even EPS. Excluding contribution last
year from a discontinued relationship with a major customer (Delta Airlines), revenue
growth was 205% Y/Y.
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 100 - - -
Market Cap (US$ mm) 82,162.9 67.9 36,142.4 1.2
Revenue (US$ mm) 23,048.3 59.8 3,057.7 0.0
1 Year revenue growth 5.3% 857.0% -91.4%
EBITDA as % of revenue - 13.4% 67.7% -75.0%
Net cash (US$ mm) 9,044.1 2.1 1,827.7 -670.8
TEV/Revenue - 1.9x 41.8x 0.1x
TEV/EBITDA - 8.4x 36.6x 0.8x
P/E - 16.0x 83.4x 0.0x
Relative to 52 week high -37.8% 0.0% -97.6%
Source: CapitalIQ
4 www.mackieresearch.com

5. 5
0
5
10
15
20
25
30
Gaming
27
Social Networking
17
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
Financial Services 1
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 3%
5% Rising
29%
Falling
59%
Rising
36%
Falling
68%
EV/EBITDA P/E
Flat Flat
2% Rising 0%
21%
Rising
34%
Falling
66%
Falling
77%
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
3/30/2009
4/6/2009
4/13/2009
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
Median EV/Revenue
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
Median
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
Long-term average
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
down second
3/1/2010
3/8/2010
consecutive week
Revenue multiples
3/15/2010
3/22/2010
3/29/2010
4/5/2010
4/12/2010
4/19/2010
4/26/2010
5/3/2010
5/10/2010
5/17/2010
373638383939393841414344444545454648494949485154545859596264646562626467687069726968677072707574757879787977788080848181
www.mackieresearch.com

8. 8
Source: CapitalIQ
Multiple (x )
# companies
0. 0x
5. 0x
10. 0x
15. 0x
20. 0x
25. 0x
3/30/2009
4/6/2009
4/13/2009
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
Median EV/EBITDA
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
Median
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
12/14/2009
Long-term average
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
below LT average
3/1/2010
remain depressed
3/8/2010
EV/EBITDA multiples
3/15/2010
3/22/2010
3/29/2010
4/5/2010
4/12/2010
4/19/2010
4/26/2010
5/3/2010
5/10/2010
5/17/2010
20 20 21 22 23 23 22 22 23 24 23 23 23 24 26 26 26 26 26 25 26 26 28 32 29 32 34 36 37 41 39 39 37 39 40 40 38 38 41 42 41 42 42 42 42 44 43 45 43 44 49 50 49 51 52 52 50 51 49 48
www.mackieresearch.com

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

10. 10
-
5.0
10.0
15.0
20.0
25.0
# Companies 2
Infrastructure
2
Music
1
Learning
8
Social Networking
4
Mobile
1
Vertical Communities
5
Diversified
6
Marketing
3
SMS/Voice
Gaming
20
1
Search
1
Podcasting
EV/Revenue
1
Collaboration
9
Media
3
Advertising
2
Internet Retail
3
Enterprise
1
Video
2
Dating
1
Financial Services
0
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
2
Enterprise
1
Mobile
5
Diversified
6
Social Networking
2
Internet Retail
1
Collaboration
Gaming
13
EV/EBITDA
6
Media
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
Look S mart, Ltd.
C y berplex Inc.
Actoz S oft C o. , Ltd.
G ameO n C o Ltd.
Source: CapitalIQ
J umbuck E ntertainment Limited
R ealNetwork s Inc.
G igaMedia Ltd.
T ree. C om, Inc.
O penwave S y s tems Inc.
DADA S pA
G lu Mobile, Inc.
Northgate T echnologies Limited
P oints International Ltd.
Unis erve C ommunications C orp.
C DC C orp.
AQ Interactive, Inc.
Internet G roup S A
AO L, Inc.
0.2 0.20.30.30.40.40.4 0.4 0.50.60.60.6 0.70.70.70.70.80.80.8
IAC /InterActiveC orp.
U nited O nline, Inc .
T he New Y ork T imes C ompany
C ornerWorld C orporation
T heS treet.com, Inc.
O AO R B C Information S y s tems
HanbitS oft, Inc.
NetDragon WebS oft, Inc.
EV/Revenue Ranking
infoG R O U P , Inc.
Hutchis on T elecommunications H ong
S park Network s , Inc.
O riented Media G roup B erhad
G amania Digital E ntertainment C o. , Ltd.
S NAP Interactive, Inc.
Y D O nline C orp.
0.80.8 1.0 1.0 1.0 1.2 1.2 1.3 1.3 1.4 1.4 1.4 1.4 1.5 1.5
Y nk K orea Inc.
NeuLion Incorporated
S hutterfly , Inc.
V alueC lick , Inc.
S core Media Inc.
P NI Digital Media Inc.
Modern T imes G roup Mtg AB
1.6 1.8 1.8 1.9 2.12.1
G ungHo O nline E ntertainment, Inc.
XING AG
2.22.22.2
S ohu.com Inc.
U O MO Media, Inc
is eemedia Inc.
Webz en Inc.
O pen T ex t C orp.
Wiz z ard S oftware C orporation
My riad G roup AG
NE O WIZ G ames C orporation
V elti P lc
F rogs ter Interactive P ictures AG
2.72.82.8 2.93.03.0 3.1 3.13.13.4
S K C ommunications C o. , Ltd.
T aleo C orp.
3.74.4
C hangy ou. com Limited
DigitalP os t Interactive, Inc.
revenue multiple at 41.8x
SpectrumDNA has highest
Mix i, Inc.
K ings oft C orporation Limited
WebMediaB rands Inc
H U G H E S T elematic s , Inc .
4.54.6 4.74.74.9
U nilava C orporation
Acceleriz e New Media, Inc.
5.5 5.6 5.8
Lingo Media C orporation
8.0
G ree, Inc.
Dena C o. Ltd.
8.9 9.2
T rans G aming, Inc.
F luid Mus ic C anada, Inc.
10.4
C hines e G amer International
12.2
B ey ond C ommerce, Inc.
13.8
G eoS entric O y j
MO K O . mobi Limited
15.415.5
T encent Holdings Ltd.
19.0
P aid Inc.
19.7
B right T hings plc
31.4
S pectrumDNA, Inc.
41.8
www.mackieresearch.com

12. 12
0. 0
5. 0
10. 0
15. 0
20. 0
25. 0
30. 0
35. 0
40. 0
G ameO n C o L td.
Ac toz S oft C o. , Ltd.
1. 3 1. 6
Source: CapitalIQ
C y berplex Inc.
AO L , Inc .
2.4 2. 4
United O nline, Inc.
4. 2
T he New Y ork T imes C ompany
S ohu. c om Inc.
Hutchis on T elec ommunications H ong K ong Holdings
Ltd.
DADA S pA
5. 2 5. 3 5. 4 5. 8
NetDragon WebS oft, Inc.
C DC C orp.
S park Network s , Inc.
V alueC lick , Inc.
EV/EBITDA Ranking
Y D O nline C orp.
infoG R O UP , Inc.
C hangy ou. com L imited
6.4 6. 5 6. 6 6. 6 6. 7 6. 7 7. 0
Unis erve C ommunic ations C orp.
XING AG
G amania Digital E ntertainment C o. , L td.
P NI Digital Media Inc.
7.4 8. 1 8. 2 8. 4
G ungHo O nline E ntertainment, Inc.
8. 8
IAC /InterAc tiveC orp.
O pen T ex t C orp.
10. 1 10. 5
K ings oft C orporation L imited
11. 1
NE O WIZ G ames C orporation
S c ore Media Inc.
11. 5 12.0
at 36.6x
S hutterfly , Inc .
HanbitS oft, Inc .
G ree, Inc.
13. 2 13. 3 14. 0
Tencent leads the group
Y nk K orea Inc .
14. 2
Mix i, Inc.
V elti P lc
Modern T imes G roup Mtg AB
15. 2 15. 2 15.4
O penwave S y s tems Inc .
T heS treet. c om, Inc.
17. 0 17. 4
F rogs ter Interactive P ic tures AG
19. 5
Dena C o. L td.
20. 6
C hines e G amer International
23. 8
T aleo C orp.
27. 9
T encent H oldings L td.
36.6
www.mackieresearch.com
Excluding EV/EBITDA > 100x