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Mindshaker
Valuation Analysis

MINDSHAKER VALUATION ANALYSIS

EXHIBIT 6

Cost of Capital
Risk Free Rate 5.50%
Market Premium 7.20%
Beta 2.675
Cost of Equity 24.76%


Assumptions:
Growth Rate 3.0%


Betas of Public Comps Ticker Beta Price/ Sales
Netscape NSCP 1.6 21.41
EBay EBAY 3.67 3,305.79
UBid UBID 6.37 69,423.75
Amazon.com AMZN 1.68 143.38
MEDIAN 2.675 1,724.59


DCF Analysis 1999 2000 2001 2002 2003 TV
Net Income (229,583) 251,582 908,586 1,347,443 1,838,303
Dep & Amort 1,167 2,800 2,800 2,800 2,800
CapEx - - - - -
Working Capital 277,484 842,116 655,845 564,531 505,069
Unlevered FCF (505,900) (587,734) 255,541 785,712 1,336,034 6,324,057
Future Value (631,161) (914,811) 496,234 1,903,551 4,038,260 2,092,276
NPV 99-03 114,826
NPV After Year 5 2,092,276
Enterprise Value 2,207,102
Less: Net Debt -
Equity Value 2,207,102


Public Comparables Sales Price/Sales Enterprise Value Net Debt Equity Val
Netscape 21.41
EBay 3305.79
UBid 69423.75
Amazon.com 143.38
Median 1724.585
Normalized Median 82.395
Netscape Multiple 21.41
Mindshaker 2,164,837 3,733,445,090 488,475 3,732,9516,615


Venture Capital Valuation Median Normalized Median Standard P/E Ratio
Sales in Year 5 22,001,060 22,001,060 22,001,060
Price / Sales Multiple 1,724.59 82.40 21.41
Enterprise Value 37,942,698,308 1,812,777,351 471,042,698
Less: Net Debt 488,475 488,475 488,475
Equity Value 37,942,209,833 1,812,288,875 470,554,222
Hurdle Rate 60% 60% 60%
Number of Years 5 5 5
Discounted TV 3,618,451,103 172,833,335 44,875,548
Initial VC Investment 500,000 500,000 500,000
VC Ownership % 0.0% 0.3% 1.1%


Standard Ratio Normalized Median Comps Median
45% 73,412.441 45% 282,740,104 45% 5,919,467,089
50% 61,965,988 50% 238,655,325 50% 4,996,504,999
55% 52,595,814 55% 202,567,111 55% 4,240,959,554
60% 44,875,548 60% 172,833,335 60% 3,618,451,103
65% 38.476~003 65% 149,186,180 65% 3,102,436,494
70% 33,140,959 70% 127,638,831 70% 2,672,255,715
75% 28,669,455 75% 110,417,315 75% 2,311,704,818


Valuation Based on EBITDA Multiple
2003 EBITDA 3,164,538
EBITDA Multiple
Based on EBITDA
multiples of various
industries
6.00
Enterprise Value 18,987,227
Net Debt 488,475
Equity Value 18,498,751


IRR to Investors 1999 2000 2001 2002 2003 IRR
Based on EBITDA Mult. (500,000) - - - 3,796,875 66%

Mindshaker
Table of ContentsAppendices
1. Executive Summary
2. Market Analysis
3. Company Description
4. Marketing & Sales
5. Products & Services
6. Operations
7. Management
8. Financials
Initial Programs
Employees
Industry Analysis
Management Biographies
Board CV Summaries
Valuation Analysis
Balance Sheets
Income Statements
Competitor Analysis
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