Slow start in May after record April: Total transaction value (excluding M&A) in the Web 2.0 universe for April was $813.5 million - the highest monthly total we have recorded. The number of financings was also a record, at 49, averaging $16.6 million each. Note that this includes the $300 million investment in DST by Tencent. Excluding this transaction, the average is $10.7 million. May 2010, in contrast, has started slowly, with only $37.4 million in financing announced thus far, averaging just $3.4 million across 11 deals. In comparison, total capital raised in May 2009 was $375.0 million, averaging $12.5 million over 30 deals. Deal round-up for May: The large deal highlights for the month include: Fluid Music (TSX:FMN, digital music distributor) will acquire Mood Media (provider of sensorial marketing solutions) for €160 mm. Lithium is purchasing analytics developer, Scout Labs, for $20 mm. Fatfoogoo (purveyor of virtual goods) is being acquired by Digital River for $10 mm. Groupalia, the Spanish answer to online group discount retailers, Groupon and LivingSocial, raised $2.5 mm in a Series A financing – the online group discounters have been raising money quickly (DST invested $135 mm in Groupon in April) with a total of $222 mm in funding coming to just these three players thus far. Bearish week again: Price performance was largely negative in our Web 2.0 universe, with prices dropping for over 70% of the companies.

1. Web 2.0 Weekly
“Fluid Music – Muzak’s Younger, Hipper Sibling”
May 11, 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) – Group Deals and Muzak’s Younger, Hipper Sibling
Fluid Music (TSX:FMN, digital music distributor) will acquire Mood Media (provider of
sensorial marketing solutions) for €160 mm.
Lithium is purchasing analytics developer, Scout Labs, for $20 mm.
Fatfoogoo (purveyor of virtual goods) is being acquired by Digital River for $10 mm.
Groupalia, the Spanish answer to online group discount retailers, Groupon and
LivingSocial, raised $2.5 mm in a Series A financing – the online group discounters
have been raising money quickly (DST invested $135 mm in Groupon in April) with a
total of $222 mm in funding coming to just these three players thus far.
Financial Results/Guidance
RealNetworks (Internet veteran from the Web 1.0 era) reported Q1/F10 revenue of
$128.6 mm (-9% Y/Y) and EPS of $0.05 (vs. $0.10 in Q1/F09). In terms of outlook,
management expects Q2 revenue to decline Y/Y and Q/Q and EBITDA to be negative –
though Q2 is expected to be the low point in financial performance for F2010.
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 99 - - -
Market Cap (US$ mm) 78,963.9 72.1 36,243.7 1.0
Revenue (US$ mm) 22,467.7 60.2 3,057.7 0.0
1 Year revenue growth 3.5% 857.0% -91.4%
EBITDA as % of revenue - 13.4% 67.7% -75.0%
Net cash (US$ mm) 8,591.6 1.8 1,754.4 -670.8
TEV/Revenue - 1.7x 46.4x 0.0x
TEV/EBITDA - 8.5x 42.6x 0.0x
P/E - 16.4x 93.4x 0.0x
Relative to 52 week high -36.7% -3.8% -97.2%
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
10% 4%
Rising
30%
Rising
17%
Falling
73% Falling
66%
EV/EBITDA P/E
Flat Flat
4% 3%
Rising
26% Rising
32%
Falling
Falling 65%
70%
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
3/23/2009
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
Median EV/Revenue
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
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
Long-term average
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
2/22/2010
recovering, but
3/1/2010
below LT Average
Revenue multiples
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
373737383939393939414344444545454648494949485154545858586163636461636367676867706667657072687372767477777777777980818181
www.mackieresearch.com

8. 8
Source: CapitalIQ
Multiple (x)
# companies
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
30.0x
3/23/2009
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
Median EV/EBITDA
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
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
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
below LT average
remain depressed
2/22/2010
3/1/2010
EV/EBITDA multiples
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
2020 2122 23 2322 2223 2423 2523 2426 26 2727 2625 2526 2830 29 3232 3436 3937 3737 3939 41 3737 3941 4039 4041 42 4242 4343 4347 4848 5051 51 4951 4847
www.mackieresearch.com

9. 9
Source: CapitalIQ
Multiple (x)
# companies
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
30.0x
3/23/2009
3/30/2009
4/6/2009
Median P/E
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
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
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
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
below LT average
3/1/2010
P/E multiples also
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
1819 1918 18 1918 1919 2020 1818 1919 20 2124 2525 2425 2628 26 2929 3030 3231 3133 3537 36 3637 3738 3935 3737 38 3636 3331 3130 3333 3433 33 3232 3134
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
3
SMS/Voice
6
Marketing
4
Mobile
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
Gaming
14
EV/EBITDA
5
Social Networking
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
50.0
0.1
Ngi Group Inc.
Asknet AG
Cyberplex Inc.
GigaMedia Ltd.
Source: CapitalIQ
Jumbuck Entertainment Limited
RealNetworks Inc.
Actoz Soft Co., Ltd.
Tree.Com, Inc.
Uniserve Communications Corp.
Openwave Systems Inc.
Glu Mobile, Inc.
GameOn Co Ltd.
DADA SpA
Northgate Technologies Limited
TheStreet.com, Inc.
IAC/InterActiveCorp.
Points International Ltd.
AOL, Inc.
Internet Group SA
CDC Corp.
United Online, Inc.
0.10.2 0.30.40.4 0.4 0.50.50.50.60.6 0.60.60.6 0.70.70.80.80.80.80.8
The New York Times Company
AQ Interactive, Inc.
CornerWorld Corporation
OAO RBC Information Systems
HanbitSoft, Inc.
EV/Revenue Ranking
infoGROUP, Inc.
NetDragon WebSoft, Inc.
Gamania Digital Entertainment Co., Ltd.
Hutchison Telecommunications Hong
SNAP Interactive, Inc.
Spark Networks, Inc.
YD Online Corp.
ValueClick, Inc.
Ynk Korea Inc.
Oriented Media Group Berhad
0.9 1.0 1.0 1.2 1.3 1.3 1.3 1.4 1.4 1.5 1.5 1.5 1.6 1.7 1.7
Shutterfly, Inc.
Score Media Inc.
NeuLion Incorporated
Modern Times Group Mtg AB
XING AG
Velti Plc
PNI Digital Media Inc.
Sohu.com Inc.
Wizzard Software Corporation
1.9 2.0 2.12.22.22.2 2.3 2.4 2.5
GungHo Online Entertainment, Inc.
Webzen Inc.
Open Text Corp.
2.82.82.9
Myriad Group AG
Frogster Interactive Pictures AG
iseemedia Inc.
UOMO Media, Inc
NEOWIZ Games Corporation
Taleo Corp.
3.0 3.1 3.13.3 3.53.6
SK Communications Co., Ltd.
Changyou.com Limited
revenue multiple at 46.4x
SpectrumDNA has highest
DigitalPost Interactive, Inc.
HUGHES Telematics, Inc.
Kingsoft Corporation Limited
WebMediaBrands Inc
4.6 4.74.94.9 5.0 5.2
Lingo Media Corporation
Mixi, Inc.
Accelerize New Media, Inc.
5.4 5.6 5.6
Unilava Corporation
Gree, Inc.
7.9 8.3
TransGaming, Inc.
Fluid Music Canada, Inc.
11.1
Chinese Gamer International
11.811.8
GeoSentric Oyj
Beyond Commerce, Inc.
13.8
MOKO.mobi Limited
15.5
Paid Inc.
19.2
Tencent Holdings Ltd.
21.8
Bright Things plc
27.8
SpectrumDNA, Inc.
46.4
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
Jumbuck Entertainment Limited
Cyberplex Inc.
0.8 1.9
Source: CapitalIQ
Actoz Soft Co., Ltd.
AOL, Inc.
GameOn Co Ltd.
2.3 2.4 2.5
United Online, Inc.
4.2
The New York Times Company
ValueClick, Inc.
Sohu.com Inc.
Hutchison Telecommunications Hong Kong Holdings
5.3 5.4 5.5 5.6
Ltd.
DADA SpA
infoGROUP, Inc.
NetDragon WebSoft, Inc.
EV/EBITDA Ranking
Spark Networks, Inc.
YD Online Corp.
6.0 6.7 6.9 6.9 7.0
CDC Corp.
Changyou.com Limited
Gamania Digital Entertainment Co., Ltd.
XING AG
7.1 7.4 7.9 8.0
IAC/InterActiveCorp.
PNI Digital Media Inc.
Uniserve Communications Corp.
8.5 9.0 9.1
GungHo Online Entertainment, Inc.
Open Text Corp.
Velti Plc
10.2 10.3 10.7
Kingsoft Corporation Limited
at 42.6x
NEOWIZ Games Corporation
Score Media Inc.
11.7 12.312.4
Shutterfly, Inc.
Tencent leads the group
Gree, Inc.
HanbitSoft, Inc.
12.9 13.8 13.8
Modern Times Group Mtg AB
Ynk Korea Inc.
15.0 15.0
Mixi, Inc.
Frogster Interactive Pictures AG
17.7 18.5
Openwave Systems Inc.
18.9
TheStreet.com, Inc.
Chinese Gamer International
22.3 23.1
Taleo Corp.
26.3
Tencent Holdings Ltd.
42.6
www.mackieresearch.com
Excluding EV/EBITDA > 100x