Starting at age 26 in 1998, I started the work of what

Would be eUniverse.
-Mission: Create public internet company
Investing my savings I had made from Palisades
Capital, (my one man investment bank I started My
senior year in my UCLA dorm room) I cobbled
together a down payment on CDUniverse, Inc. a 20
person money losing online ecommerce/music
company Located in Wallingford, CT, while
striking a deal to acquire online game company
CasesLadder.com, becoming publicly traded by
merging with a public shell on OTC Bulletin Board,
and raising over $7.0 million dollars in growth
capital.
On April 14, 1999, EUNI, the public company began
trading and closed its first day at $12.50
per share, trading inter-day as high
As $14.50 where my Mother, the late
Judith Guilfoyle, invested by purchasing
Shares of EUNI in the open market
I owned over 50% of eUniverse when we first
Became public. I was the control Shareholder, and
was the ultimate authority in deciding what I thought
would be the best strategic and operational decisions
To build value for the shareholders.
By the time I left this position in late October 2003,
eUniverse owned 100% of 3 businesses it had created
that were perfectly positioned to create billions of
dollars in Shareholder value.
MYSPACE GAMEUNIVERSE FLOWGO -
Summer 1995
I completed a 4 page Internet Business
Plan: InterWeb which focused on
Building Community using the Internet.
1996 During last year of UCLA Undergrad, working
out of his dorm, Brad forms Merchant Bank Palisades
Capital And within two years raises over $55 million
dollars for 3 publicly traded companies,
Motorcyles Centers of America Acquires Entertainment Universe / eUniverse.com
April 14, 1999 04:26 PM
INGLEWOOD, Colo.--(BUSINESS WIRE)--April 14, 1999--Motorcycle Centers of America Inc. MCAMD today
announced the completion of the acquisition of Entertainment Universe Inc. (http://www.eUniverse.com), which in
turn has simultaneously closed on the acquisition of CD Universe Inc. (http://www.cduniverse.com, http://
www.videouniverse.com) and rased $6,500,000 dollars through a private placement led by institutional investors
including Lehman Brothers Inc. and Eisenberg Partners L.L.C.
Entertainment Universe (www.eUniverse.com) was acquired by MCAMD in a stock for stock exchange completed
via a Plan of Reorganization. Additionally, Entertainment Universe's officers and directors have replaced those of
MCAMD. Post acquisition, MCAMD which intends to change its name to eUniverse.com Inc. has 13,738,000
shares outstanding and a float of 1,033,000 shares.
Entertainment Universe Inc. (http://www.eUniverse.com), a privately held California-based Internet company, has
made CD Universe Inc. its first acquisition in its plan to build a network of entertainment focused commerce,
community, and technology driven Web sites, similar to a strategy being employed by Go2Net Inc. GNET .
CD Universe Inc., based in Wallingford, Conn., is one of the most successful and sophisticated online retailers,
selling music, video products, and accessories online since 1996. Through its web sites: www.cduniverse.com
and www.videouniverse.com, the company has won numerous awards for customer service.
With a critical mass of over 275,000 customers, CD Universe is expected to show revenue of over $9,000,000
with a net loss of approximately $500,000 for its most recent fiscal year which recently ended March 31, 1999. For
its fiscal year ending March 31, 1998, CD Universe reported audited revenue of $5,685,000 with a net loss of
($113,000).
"The acquisition of CD Universe has provided eUniverse.com with an outstanding e-commerce engine to power
our growing entertainment focused web site network. With unmatched customer service, proprietary technology,
and its own 7,500 square foot fulfillment center, CD Universe will allow eUniverse.com to successfully implement
a wide range of e-commerce opportunities immediately," explained eUniverse.com chairman Brad D. Greenspan.
Charles Beilman, president and founder of CD Universe, now becomes chief operating officer of eUniverse.com.
"I'm very pleased to be part of the outstanding eUniverse.com management team and look forward to helping
build the eUniverse.com network," Beilman said.
Entertainment Universe Inc. has raised $6.5 million dollars through the issuance of six percent Series A
Convertible Preferred Stock. The Series A Preferred Stock initially converts into common stock at $3.60 per share
and cannot be converted for at least 6 months from issuance. Gerard Klauer Mattison & Co. Inc., a New York-
based investment banking firm, acted as the placement agent for the transaction. Several principals of Gerard
Klauer Mattison & Co. were also prior investors in Entertainment Universe.
"We are excited that institutional investors such as Lehman Brothers, Inc. and Eisenberg Partners, L.L.C. have
found eUniverse.com's story to be so compelling," said Greenspan. "In addition, through our banking relationship
with Gerard Klauer Mattison & Co., we will begin to aggressively seek out additional acquisitions for our network.
With over $5,000,000 dollars of cash and no debt, we are in excellent shape to execute our business plan. We
intend to file our Form 10-SB as soon as possible and upon effectiveness will immediately seek to become listed
on the Nasdaq exchange."
- eUniverse begins trading on April 14, 1999 and
has initial closing price of $12.50 per share
- Valuation Day 1 As public company (14 million
shares out approximately)
= $175,000,000
- As eUniverse becomes publicly traded, it was
majority owned by 26 year old Founder
- and Chairman Brad Greenspan
William R. Wagner 8,333(5) nm
Leland N. Silvas 358,334(4) 2.5%
Joseph Abrams(3) 1,539,000 10.9%
Charles Beilman 2,425,000 17.2%
Brad D. Greenspan 8,061,000 57.2%
Name of Beneficial Owner Shares Owed EUNIVERSE, INC. CAP TABLE APRIL 1999
Chairman Brad
Greenspan, 26-
Oversees 22
employees
Leland Silvas-
CEO
William
Wagner-CFO
Chuck
Beilman-COO
Frank Westall,
Head of
Gaming (joins
end of April
Leland Silvas,
Director
Chuck Beilman,
Director
3 OFFICES - LOCATION SIZE (SQ. FT.)
MONTHLY RENT
Wallingford, Connecticut 13,500 $9750
Bridgeton, Missouri
As of June 30, 1999 - eUniverse has
$4.1 million in Cash
eUniverse has 51 full-time associates, 21
are in marketing, 22 arein programming
and operations, and 8 are in
administration.
EUNIVERSE ANNOUNCES
ACQUISITION OF CASES
LADDER (Acquisition #1) -
Case's Ladder is an online gaming
portal which provides competitive
rankings for a variety of
tournaments and leagues
EUNIVERSE ACQUIRES
GAMERS ALLIANCE
(Acquisition #2) Adam
Goldenberg joins as Manager of
Gamers Alliance websites. Adds
750,000 unique users per month +
20 websites
EUNIVERSE
ACQUIRES
MEGADVD
(Acquisition #3)
Entrepreneurs Steve
Martin & Korri Kolessa
join eUniverse
April 20 May 4 May 20
BG / LOS ANGELES -
Head of Internet Strategy
and Principal Decision
Maker
CASES
LADDER
(Seattle
Office)
GAMERS
ALLIANC
E (ST.
Louis)
Big
Network
(San
Francisco)
CDUNIVES
E
(Wallingfor
d)
Within 8 Months from Launch eUniverse is ranked In Top 50
OCT 12, 1999 - eUniverse Has Signed a
Definitive Agreement to Acquire FunOne.com
Adding Unique Entertainment Property to
the eUniverse Network WALLINGFORD,
Conn., Oct. 12 /PRNewswire/ -- eUniverse, Inc.,
(OTC BulletinBoard: EUNI), an entertainment
community and ecommerce network with more
than 2.5 million unique users, today announced
that a binding letter of intent has been signed to
acquire FunOne.com (http://www.funone.com).
Founded in 1998, FunOne is an entertainment and
community hub, with over 250,000 unique
visitors per month (as reported by Media Metrix)
eUniverse delivers entertainment-diversions
and advertising offers. Millions of people
visit eUniverse for a positive, funny or
inspirational escape from the grind of their
daily routine.
eUniverse provides the content (and tools) to
communicate and connect with the important
people in their lives.
BECOMING THE VIRAL CONTENT KING- Thru acquiring the gaming sites and our CDUniverse.com website, we had built Up our audience to 2.5 million unique users by
October of 1999. But this was still a tiny audience and we were not growing organically very fast,
So I began looking for the next BIG THING ONLINE to DISCOVER.
In October 1999, I stumbled upon FUN PAGES and bought one of the first Funpage websites, Funone.com.People would send these funny, inspiring, shocking pages to many
of their friends, And their friends would send them to their respective friends.
The content was spread almost like a VIRUS SPREADS QUICKLY IN ALL DIRECTINS - VIRALLY. Hence, where concept Of VIRAL MARKETING came from.
I KNEW I HAD DISCOVERED A NOVEL WAY TO BUILD UP AUDIENCE/TRAFFIC, SO I PUSHED OUR RESOURCES INTO THE FUN PAGE & EMAIL SPACE.
AND OUR AUDIENCE/USER BASE EXPLODED!
eUniverse became master
Of Diversionary Entertainment
(our mantra from 20000):
Sample
FunPage
Circa 1999
The eUniverse Network is
Games Planet : The Place to Reach Teens.
Family Planet: The Place to Reach Women.
95% Proprietary / 5% Syndicated from Media Partners and Entertainment
Focused.
Entertainment Planet : eUniverse Branded Entertainment
The #2 entertainment site
-Industry Standard (Neilson/NetRatings)
The #6 entertainment site
Daily Explosion
Classic Commercials
Real TV
Comic Strip
Live
Deepak Chopra on Life
eUniverse TV
Streaming Media
Newsletter
eUniverse
Newsletters

Recipe of
the Day
eUniverse
Web Shows
9
EUNI was one of the most visited and fastest growing web
properties in the history of the Internet In its first full year of
operation (PRE GOOGLE)
EUNI has over 24 MM opt-in
subscribers and sends over
700 MM emails per month
BY DECEMBER 2000 - EUNI is ranked as the 14
th
Most Visited Site on the
Internet with over 19 million Unique visitors at home
and work (Nielsen/NetRatings, December, 2000)
EUNI has grown its traffic by over 7,000%
in its first 18 months and is adding over
500,000 new newsletters subscribers per week
All numbers in Millions
JULY 13, 2001 - 550 Digital Media
Ventures, a Sony Group Company, to
Take Up to $17 Million Equity Stake in
eUniverse in Exchange for Cash and
Assets
JUNE 14- 2001 - ACQUISITION OF
LOYALTY REWARD PLATFORMeUniverse
(Nasdaq: EUNI), the leading interactive
entertainment network, announced today
that it has acquired the assets of Funbug,
Inc. a loyalty reward technology and
sweepstakes platform.
2001 HIGHLIGHTS
14
DATING POWERHOUSE BY AUGUST 2001-
-100% owned asset of eUniverse generating $300-400K per month in cash flow by late 2002.
I knew Dating as well as anyone in the internet space because eUniverse
Was 100% owner of one of the Top 10 Dating Websites on the internet
CUPIDJUNCTION.COM
-Launched in 2001, we were able to grow Cupid Junctions user base very
Quickly. Faster then the highly touted Friendster was growing, I quickly ascertained!
So by 2001, I knew that we had created a marketing machine
In eUniverse which could drive an ordinary dating database type platform from zero to 450,000
In 2.5 months
Brad Greenspan, Chairman/CEO
Founder of eUniverse
Founder and CEO, Palisades Capital
Shawn Gold, Co-President/CSO
Brett Brewer, Co- President/COO
Former, President, CD Universe business unit
Led Regional Sales Office of CB Richard Ellis
Over 8 years interactive industry experience
Head of Strategic Planning, Rare Medium
Led Marketing and Sales at WhatsHotNow.com
By Late 2001, I had assembled a new Management
Team in Los Angeles
Joe Varraveto, CFO/EVP
Chief Operating Officer of ememories.com
Vice President of Finance at Frito Lay
Price Waterhouse Coopers corporate acquisitions & reorganizations
BESTING WORLDWINNER IN 2003 WITH PROPRIETARY BG SECOND
MOVER ADVANTAGE MANUEVER-
-WorldWinner.com launched By smart Russian entrepreneurs In 1999. Pioneer and leader to
Start with for SKILLED GAMING- NEW GENRE/MODEL
Also hire top Execs like former executive from
Monster.com, Peter Blacklow who became WorldWinners Chief Marketing Officer in 2003
-By May of 2003, WorldWinner.com had raised over $23 million dollars
From:
-Benchmark Capital- (Bob Kagle led round & was Board Member)
-Zero Stage Partners-
-HarborVest Partners
-Common Angels-
2002, I MET WORLDWINNER MANAGEMENT BRIEFLY AND FELL IN LOVE WITH THEIR
PLATFORM / BIZ MODEL. I FELT A NEED TO MONETIZE OUR LARGE EUNIVERSE AUDIENCE
MORE VIA CREDIT CARD AT THIS POINT IN INTERNET LIFE AS ADS WERE STILL WEAK.
TIME & EXPERIENCE ADVANTAGE WORLDWINNER. WW HAD BEEN AROUND FOR 4 YEARS BY 2003
-EUNIVERSE BEGINS CREATING SKILLJAM.COM IN LATE 2002, 3 YEARS LATER
( I DECIDED TO LAUNCH SKILLAM.COM A 100% OWNED DIVISION OF EUNIVERSE WHICH I CREATED AND
LED STARTING IN LATE 2002.
CAPITAL ADVANTAGE WWINNER -
BUT WE HAD VERY LITTLE
CASH ACROSS 8 PRODUCTS
1000% growth
Over 24 months
160% year over
Year growth
Source: Nielson-NetRatings Top WebSites
Period: Week of 10/28/01 Panel Type: Home (US)
(a)Commscore
We Started with 800,000
unique users in April 1999
We had been ranked as high as 5
th
largest online\
network in U.S. By end of 2001, eUniverse had built a
larger audience, then both Google and Ebay, reaching
31+ million U.S. Unique Users by October 2002 and 49.4
million Globally.
19
!unL 2003 - CunnlnC lC8 l8lLnuS1L8-
88Au C8LLnSAn SLLkS Cu1 1PL CLC Cl l8lLnuS1L8
Anu 1P8u PlS 8uSlnLSS nL1WC8k lS A8LL 1C CCnnLC1.
8y SepLember 30, 2003, 8esponse8ase was loslng $230,000 er quarLer
for eunlverse vs. Lhe $1.0 - 1.3 mllllon ln proLs LhaL Chrls ueWolfe had
pro[ecLed [usL monLhs earller. uewolfe and hls dlvlslons performance
were Lhe worsL of any dlvlslon of eunlverse.
8esponse8ase's buslness had eecuvely ulsappeared.
As CLC, l deLermlned LhaL Lhe head of dlvlslon, Chrls ueWolfe was
lncapable of gurlng ouL how Lo repalr or resLore Lhe buslness he had
sold my Company. 8uL l belleved Lhere were some LalenLed employees
ln Lhe group.
So l declded LhaL l would use cerLaln of Lhe employees of Lhe
8esponse8ase dlvlslon Lo [ump lnLo 8elng lnvolved and helplng CperaLe
Lhe new buslness ldeas LhaL l wanLed Lo launch ln Lhe summer of 2003.
So l meL wlLh Chrls ln May 2003 and revealed LhaL one of Lhe new
buslnesses l was deLermlned Lo launch eunlvers lnLo was SCClAL
nL1WC8klnC. l explalned Lo Chrls ueWolfe LhaL lrlendsLer was Lhe rsL
soclal neLwork and we could slmply copy lL and Lhen leverage our
audlence 1o race pasL lrlendsLer. Chrls was lnLrlgued and wenL Lo
Co check ouL lrlendsLer. And so when l needed Lo puL a small Leam
LogeLher Lo manage our soclal neLworklng lnluauve, Chrls
requesLed Lo be lncluded wlLh some of Lhe responsebase Leam
8esponse8ase performed so badly LhaL aer l le eunlverse, updaLed llnanclal lnformauon
revealed LhaL due Lo 8esponse8ase's revenue lunge, Lhe value of Lhe 8esponse8ase
dlvlslon was 'lmpalred' by $1.2 mllllon dollars, a shocklng ma[or wrlLe down monLhs aer
buylng 1he company for $3 mllllon ln cash, ouL blggesL cash acqulsluon Cf all ume.
This article
published in
August 2003,
charted the
audience
growth or
monthly rough
Growth
Velocity of
Friendster
similar to what I
was able to
calculate In July
2003 when
Jonathan
Abrams
reported to us
he had 800,000
users on
Friendster
It took 17 Months For Friendster
to Reach 800,000 Total
Registered Users by JULY 2003.
I LEVERAGED DATA TO REACH A SIMPLE CONCLUSION
Friendster Starts in June 2002
Friendster Registered approx 1000
Users in the first 90 days of its launch
Myspace Registered over 280,000
Users in first 90 days
Brad Forms Merchant Bank Palisades Capital And Within two years has
made close to $2 million in Finders Fees
8? SL1LM8L8 2003,
30 uA?S Al1L8 LAunCP
l knLW M?SACL
WAS CClnC 1C 8L A 8lC
WlnnL8.
l WAS PCLulnC Cll AnnCunClnC Cu8
nLW SCClAL nL1WC8klnC LA1lC8M lC8 A
lLW MCn1PS SC 1PA1 WPLn WL LunlvL8SL
AnnCunCLu M?SACL, WL CCuLu AnnCunCL
A LA8CL AuulLnCL ML18lC LlkL 1PA1 WL PAu
1 MlLLlCn uSL8S C8 Su8ASSLu l8lLnuS1L8.
MY BIG MISTAKE- NOT ANNOUNCING MYSPACE
BECAUSE I WANTED TO WAIT 60 DAYS UNTIL
WE OVER TOOK FRIENDSTER AND WERE #1!!
And on March
1, 2004,
Myspace
Announced it
was #1 in social
networking,
Surpassing
Friendster
By end of
Feb, 2004
Myspace
already Had
registered
1.1 million
users
Myspace
Launched and
began
Registering users
on August 15,
2003
I stepped down As CEO of eUniverse
At end of October 2003 and resigned as a Board
Member on December 11, 2003.
nLW MAnACLMLn1 AnnCunCLS
M?SACL lC8 ll8S1 1lML
AS l1 8LCCMLS #1. A CCC8ulnA1Lu
LllC81 8LClnS 8? CP8lS uLWCLlL
Anu 8lCPA8u 8CSLn8LA11 1C
C8LA1L M?1P 1PA1 M?SACL
WAS nLW CCMAn? 1PA1 !uS1
CLu u ln 2004, nC MLn1lCn
Cl Cu88Ln1 CWnL8 LunlvL8SL
(C8 1PA11PL? WC8k A1 LunlvL8SL).
8lchard 8osenblau Lells medla Myspace had 100,000 users
When he goL lnvolved as CLC of eunlverse aL end of leb 2004.
lnACCu8A1L. Myspace already had over 1 mllllon users by leb 2004.
1CM WAS nC1 A lCunuL8. PL WASn'1 LvLn luLn1lllLu ln1L8nALL? AS 1C
ClllCL8 Cl M?SACL ulvlSlCn AS l1 MA1u8Lu Anu C8LW ln 2004. ln lAC1,
Lven by end of 2003, 1om Anderson was ranked only as as vlce resldenL vs.
lounder or more senlor exec posluon (Lhls ls employee llsL from approx !une
2003.
M? A11LM1 1C SAvL M?SACL, kLL l1 lnuLLnuLn1 Anu CLnL8A1L 1C vALuL
lC8 SPA8LPCLuL8S ln 2003!