Deals (M&A, Finance)
Jive Software received the biggest investment of the week at $30 mm, bringing its total capital raised to date to $57 mm – the company brings social network-like functions to the realm of enterprise collaboration.
Advertising networks continue to receive the most attention among sectors we track – this week, $24.6 mm in financings were announced, including sports-related ad network Sportgenic (acquired by Glam Media for $12 mm), and TurnHere ($12.6mm in Series B funds).
Rumour alert – we continue to hear more frequent buzz concerning the potential acquisition of social gaming developer Playdom by Disney.
Synchronica (AIM:SYNC) intends to acquire iseemedia (TSXV:IEE) for C$8.8 mm in stock – both companies are engaged in mobile communications development, such as email-to-SMS.
Price performance turns positive
The Web 2.0 public company universe was positive this week, with 54% of companies seeing their market cap rise vs. 34% falling and 12% flat.
2. Key Developments (past week)
Deals (M&A, Finance) – Jive – the Social Enterprise
Jive Software received the biggest investment of the week at $30 mm, bringing its total
capital raised to date to $57 mm – the company brings social network-like functions to
the realm of enterprise collaboration.
Advertising networks continue to receive the most attention among sectors we track –
this week, $24.6 mm in financings were announced, including sports-related ad network
Sportgenic (acquired by Glam Media for $12 mm), and TurnHere ($12.6mm in Series
B funds).
Rumour alert – we continue to hear more frequent buzz concerning the potential
acquisition of social gaming developer Playdom by Disney.
Synchronica (AIM:SYNC) intends to acquire iseemedia (TSXV:IEE) for C$8.8 mm in
stock – both companies are engaged in mobile communications development, such as
email-to-SMS.
Financial Results/Guidance/Partnerships/Product
Online gaming in China is big business: Sohu.com (parent company of
Changyou.com and leading online gaming provider in China) reported Q2/F10 results,
including revenue of $146 mm (+15% Y/Y), operating profit of $51.2 mm (+6% Y/Y),
operating margin of 35.0% (Q2/F09: 38.1%), and EPS of $0.82 (Q2/F09: $0.79).
2 www.mackieresearch.com
4. Aggregate Public Data
Web 2.0 Public Companies Total Median Max Min
# Companies 102 - - -
Market Cap (US$ mm) 83,771.6 50.2 32,565.7 0.0
Revenue (US$ mm) 28,481.4 43.9 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) 17,044.9 2.9 6,535.8 -670.8
TEV/Revenue - 1.8x 42.3x 0.0x
TEV/EBITDA - 8.5x 40.6x 0.1x
P/E - 16.1x 99.9x 0.0x
Relative to 52 week high -42.8% 0.0% -93.3%
Source: CapitalIQ
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5. 5
0
5
10
15
20
25
30
Gaming
28
Social Networking
16
Media
10
9
Diversified
6
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
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10. 10
-
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
# Companies 2
Infrastructure
13.5
2
Virtual World
13.3
9
Social Networking
10.0
1
Learning
7.9
4
Mobile
5.1
2
Music
4.7
6
Diversified
3.9
Gaming
21
3.7
1
Search
3.6
1
Vertical Communities
3.0
5
Marketing
2.9
1
Podcasting
2.8
Average EV/Revenue – by Sector
3
SMS/Voice
2.6
1
Collaboration
2.6
3
Advertising
2.2
9
Media
2.2
2
Internet Retail
2.0
3
Enterprise
1.9
1
Video
1.5
2
Dating
1.4
1
Financial Services
0.4
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11. Average EV/EBITDA – by Sector
45.0
40.0 38.8
35.0
30.0
25.0
19.2
20.0 18.1
15.0
12.5 12.3 11.6 11.1
9.4 9.4
10.0
7.0 6.9
5.0 3.9
-
Diversified
Advertising
Internet Retail
Search
Mobile
Enterprise
Gaming
Social Networking
Collaboration
Media
Marketing
Dating
# Companies 1 3 2 5 13 2 6 1 6 2 1 1
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12. Average P/E – by Sector
120.0
100.0 95.6
80.0
60.0 55.7
41.3
40.0 37.1
25.9
19.2
20.0
14.3 14.1 13.4
7.6
-
Internet Enterprise Collaboration Diversified Social Marketing Media Advertising Gaming Virtual World
Retail Networking
2 3 1 9 16 5 10 3 28 2
# Companies
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13. 13
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
42
Ac credited Members H olding C orporation
Source: CapitalIQ
32
S ocialG O P LC
27
Worlds .c om Inc .
26
S pec trumDNA, Inc .
17
T encent H oldings L td.
MO K O . mobi L imited
15 15
G eoS entric O y j
11
G ree, Inc .
P aid Inc .
B ey ond C ommerce, Inc .
10 10 10
C hines e G amer International
8
L ingo Media C orporation
Mood Media C orporation
7 7
DigitalP os t Interactive, Inc .
T rans G aming, Inc .
7 6
Dena C o. L td.
Ac celeriz e New Media, Inc.
5 5
HU G H E S T elematic s , Inc .
Mix i, Inc.
C hangyou. com Limited
F rogs ter Interac tiv e P ic tures AG
4 4 4 4
T aleo C orp.
S K C ommunications C o., L td.
4 3
K ings oft C orporation Limited
WebMediaB rands Inc
Motric ity , Inc .
Wiz z ard S oftware C orporation
O pen T ex t C orp.
EV/Revenue Ranking
3 3 3 3 2
eP ro L td.
Modern T imes G roup Mtg AB
S ohu.c om Inc .
XING AG
S hutterfly, Inc.
NE O WIZ G ames C orporation
S core Media Inc.
U O MO Media, Inc
V elti P lc
V alueC lick , Inc .
H anbitS oft, Inc.
Myriad G roup AG
2 2 2 2 2 2 2 2 2 2 2 2
P NI Digital Media Inc .
G ungH o O nline E ntertainment, Inc .
P latforma Mediowa P oint G roup S . A.
NeuL ion Inc orporated
is eemedia Inc .
Webz en Inc.
S NAP Interactive, Inc .
Accredited Members
S park Network s , Inc .
revenue multiple at 42x
G amania Digital E ntertainment C o., L td.
Holding Co. has highest
Hutc his on T elec ommunic ations Hong
U nilav a C orporation
Y D O nline C orp.
2 2 2 2 1 1 1 1 1 1 1 1
NetDragon WebS oft, Inc.
Y nk K orea Inc.
O riented Media G roup B erhad
AQ Interactive, Inc .
Internet G roup S A
IAC /InterAc tiv eC orp.
O AO R B C Information S ys tems
T heS treet. com, Inc .
T he New Y ork T imes C ompany
P oints International L td.
U nited O nline, Inc .
DADA S pA
Northgate T echnologies Limited
C DC C orp.
Unis erve C ommunic ations C orp.
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
AO L, Inc.
G lu Mobile, Inc .
G igaMedia L td.
T ree. C om, Inc .
O penwav e S y s tems Inc.
C y berplex Inc.
R ealNetwork s Inc .
Actoz S oft C o., Ltd.
J umbuc k E ntertainment L imited
Look S mart, L td.
As k net AG
1 1 0 0 0 0 0 0 0 0 0
G ameO n C o L td.
0
Ngi G roup Inc .
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