Google/Zynga deal drives July financing results: After starting very slowly (just one deal announced in the prior week) July financing increased substantially as a result of the Google/Zynga financing ($100-200 million). Total raised month-to-date is $158.8 million over 12 deals - averaging $13.2 million each. In comparison, total capital raised in July 2009 was $206.5 million, averaging $5.3 million over 39 deals. Excluding Dec 09 and Apr 10, the average monthly total is ~$280 million. Deals (M&A, Finance) Google invested a rumoured $100-$200 mm in social game developer, Zynga, bringing that company’s total funding to almost $500 mm (assuming the lower end of the range). The Gaming sector remains hot – along with Google’s investment in Zynga, The9 Ltd. (Chinese online game developer and operator) invested $5 mm in Delaware-based Aurora Feint (focused on gaming for the mobile space). A triad of financings in the Social Commerce space this week, including Beyond the Rack ($12 mm), ThredUP ($1.7 mm), and BuyWithMe ($16 mm in a Series B financing). Sysomos, Canadian social media monitoring firm, was acquired by MarketWire for between $25 mm and $35 mm. Price performance turns positive The Web 2.0 public company universe rose this week, with 58% of companies seeing their market cap rise vs. 32% rising and 10% flat.

1. Web 2.0 Weekly
“Google Follows ITA Software With Zynga Financing”
July 13, 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) – Google On A Roll
Google invested a rumoured $100-$200 mm in social game developer, Zynga, bringing
that company’s total funding to almost $500 mm (assuming the lower end of the range).
The Gaming sector remains hot – along with Google’s investment in Zynga, The9 Ltd.
(Chinese online game developer and operator) invested $5 mm in Delaware-based
Aurora Feint (focused on gaming for the mobile space).
A triad of financings in the Social Commerce space this week, including Beyond the
Rack ($12 mm), ThredUP ($1.7 mm), and BuyWithMe ($16 mm in a Series B
financing).
Sysomos, Canadian social media monitoring firm, was acquired by MarketWire for
between $25 mm and $35 mm.
Financial Results/Guidance/Partnerships/Product
LookSmart, Ltd (NasdaqGM:LOOK) provided preliminary Q2/F10 guidance for sales of
$12.8-$13.0 mm (compared with $13.2 mm Y/Y and $13.3 mm Q/Q). However, the
company is expected to report positive EPS of $0.02-$0.04 compared with losses of
$0.08 and $0.03 Y/Y and Q/Q, respectively. LookSmart is an advertising firm with focus
on pay-per-click and search campaigns.
2 www.mackieresearch.com

3. Chart of the Week: Zynga Dominates Gaming Financing
600.0
Zynga has raised ~$500 mm
– more than any other
500.0
Gaming sector company
400.0
US$ mm
300.0
481.0
200.0
300.0
100.0
99.6 92.0
76.0
40.6 36.5 29.0 27.0 24.0 24.0
0.0
LiveGamer
Smith & Tinker
Zynga
ZeniMax Media
Turbine
Raptr
Ngmoco
Emergent Game
Limbo
Playdom
Big Fish Games
Technologies
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 103 - - -
Market Cap (US$ mm) 76,857.8 69.3 32,658.2 1.0
Revenue (US$ mm) 23,196.6 56.0 3,057.7 0.0
1 Year revenue growth 2.5% 8961.6% -100.0%
EBITDA as % of revenue - 11.3% 63.1% -99.5%
Net cash (US$ mm) 9,249.6 3.3 1,843.0 -670.8
TEV/Revenue - 1.9x 43.5x 0.1x
TEV/EBITDA - 8.8x 42.9x 0.5x
P/E - 15.8x 94.5x 0.0x
Relative to 52 week high -44.0% 0.0% -95.6%
Source: CapitalIQ
5 www.mackieresearch.com

6. 6
0
5
10
15
20
25
30
Gaming
28
Social Networking
18
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
50
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
10% Flat
0%
Falling
63%
Falling
32% Rising Rising
58% 37%
EV/EBITDA P/E
Flat Flat
0% 0%
Rising
Rising 40%
33%
Falling
67% Falling
60%
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
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
Median EV/Revenue
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
Median
11/16/2009
11/23/2009
11/30/2009
12/7/2009
12/14/2009
12/21/2009
12/28/2009
1/4/2010
1/11/2010
1/18/2010
Long-term average
1/25/2010
2/1/2010
2/8/2010
2/15/2010
2/22/2010
3/1/2010
3/8/2010
3/15/2010
3/22/2010
average
3/29/2010
4/5/2010
well below LT
4/12/2010
4/19/2010
down slightly, still
Revenue multiples
4/26/2010
5/3/2010
5/10/2010
5/17/2010
5/24/2010
5/31/2010
6/7/2010
6/14/2010
6/21/2010
6/28/2010
373839404040404042444545464646474951505150535656616161646666676464666970717173697068717370757578767879817879808083828282
www.mackieresearch.com

9. 9
Source: CapitalIQ
Multiple (x )
# companies
0. 0x
5. 0x
10. 0x
15. 0x
20. 0x
25. 0x
30. 0x
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
Median EV/EBITDA
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
Median
11/30/2009
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
4/19/2010
4/26/2010
5/3/2010
5/10/2010
5/17/2010
EV/EBITDA multiples down,
depressed below LT average
5/24/2010
5/31/2010
6/7/2010
6/14/2010
6/21/2010
6/28/2010
7/5/2010
7/12/2010
19 20 21 22 22 21 21 22 23 22 23 22 23 25 25 26 26 25 24 25 26 27 30 29 33 33 35 37 40 38 38 38 39 40 42 38 38 41 42 41 42 41 41 41 42 43 44 44 44 47 49 49 50 50 50 48 50 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
5/25/2009
6/1/2009
6/8/2009
Median P/E
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
10/5/2009
10/12/2009
10/19/2009
10/26/2009
11/2/2009
11/9/2009
11/16/2009
11/23/2009
Median
11/30/2009
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
4/19/2010
4/26/2010
and below LT average
5/3/2010
P/E multiples also down
5/10/2010
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
19 19 18 18 19 18 19 19 20 20 19 18 19 19 19 20 23 23 24 24 25 26 28 26 30 30 31 31 33 33 33 35 37 39 38 38 38 39 40 41 39 39 39 38 37 37 35 33 33 32 35 35 36 35 35 34 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
50.0
45.0 42.9
40.0
35.0
30.0
25.0
20.0
16.7 16.5
15.0
12.1
11.1
10.2 9.9 9.2 9.1
10.0
6.9 6.5
4.7
5.0
-
Diversified
Advertising
Internet Retail
Search
Enterprise
Mobile
Social Networking
Gaming
Media
Collaboration
Marketing
Dating
# Companies 1 2 3 5 2 6 13 6 1 2 1 1
12 www.mackieresearch.com

13. Average P/E – by Sector
100.0
90.4
90.0
80.0
70.0
60.0 57.5
50.0
39.6
40.0 35.9
30.0
23.7
19.2
20.0 16.0
13.5 13.2
10.0 7.4
-
Internet Enterprise Collaboration Diversified Social Marketing Advertising Gaming Media Virtual World
Retail Networking
2 3 1 9 18 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
40
NeXplore C orporation
S ocialG O P LC
33 33
Worlds .c om Inc .
26
S pec trumDNA, Inc .
17
T encent H oldings L td.
15
G eoS entric O y j
13
P aid Inc .
11
B ey ond C ommerce, Inc .
C hines e G amer International
10 10
MO K O . mobi L imited
9
G ree, Inc .
L ingo Media C orporation
8 8
DigitalP os t Interactive, Inc .
F luid Mus ic C anada, Inc .
7 6
T rans G aming, Inc .
Dena C o. L td.
HU G H E S T elematic s , Inc .
6 5 5
Ac celeriz e New Media, Inc.
F rogs ter Interac tiv e P ic tures AG
Mix i, Inc.
S K C ommunications C o., L td.
4 4 4 4
C hangyou. com Limited
T aleo C orp.
4 3
WebMediaB rands Inc
K ings oft C orporation Limited
is eemedia Inc .
Wiz z ard S oftware C orporation
EV/Revenue Ranking
O pen T ex t C orp.
3 3 3 3 2
Motric ity , Inc .
H anbitS oft, Inc.
eP ro L td.
Modern T imes G roup Mtg AB
NE O WIZ G ames C orporation
XING AG
S core Media Inc.
S ohu.c om Inc .
S hutterfly, Inc.
V elti P lc 2 2 2 2 2 2 2 2 2 2
P NI Digital Media Inc .
G ungH o O nline E ntertainment, Inc .
V alueC lick , Inc .
Myriad G roup AG
P latforma Mediowa P oint G roup S . A.
U nilav a C orporation
Webz en Inc.
U O MO Media, Inc
Accredited Members
NeuL ion Inc orporated
revenue multiple at 43x
G amania Digital E ntertainment C o., L td.
Holding Co. has highest
Hutc his on T elec ommunic ations Hong
Y D O nline C orp.
S park Network s , Inc .
2 2 2 2 2 2 2 1 1 1 1 1 1
S NAP Interactive, Inc .
Y nk K orea Inc.
O riented Media G roup B erhad
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
T he New Y ork T imes C ompany
T heS treet. com, Inc .
Northgate T echnologies Limited
IAC /InterAc tiv eC orp.
DADA S pA
Unis erve C ommunic ations C orp.
U nited O nline, Inc .
C DC C orp.
AO L, Inc.
G igaMedia L td.
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
G lu Mobile, Inc .
T ree. C om, Inc .
C y berplex Inc.
Actoz S oft C o., Ltd.
O penwav e S y s tems Inc.
J umbuc k E ntertainment L imited
R ealNetwork s Inc .
G ameO n C o L td.
As k net AG
0 0 0 0 0 0 0 0 0
Look S mart, L td.
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