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Table of Contents
AOL INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
customer relationships to be amortized over a period of four years. The assets and liabilities recorded for the acquisition of The Huffington Post were based on
preliminary valuations and the estimates and assumptions are subject to changes as the Company obtains additional information during the measurement
period. The preliminary areas that are not finalized relate to analysis of the fair value of certain liabilities and any corresponding effects on the recorded
amount of goodwill. As such, the measurement of identifiable assets acquired and liabilities assumed has not been finalized.
2010 Acquisitions
StudioNow
On January 22, 2010, the Company completed the acquisition of StudioNow, Inc. ("StudioNow"), a provider of a proprietary digital platform that
allows clients to create, produce, manage and distribute professional quality videos at scale, for a purchase price of $32.1 million. Of the total consideration,
$14.1 million was paid through the issuance of 594,749 shares of AOL common stock valued as of the closing date. Of the remaining $18.0 million, $14.0
million was paid in cash at the closing date and $4.0 million reflects the present value of the cash consideration due two years after the closing date.
This business was acquired to attract and engage more internet users and drive high volumes of video content production through StudioNow's
platform, which, along with market conditions at the time of acquisition, contributed to a purchase price that resulted in the allocation of a significant portion
of the purchase price to goodwill. AOL recognized $26.7 million of goodwill (which is not deductible for tax purposes) and $4.3 million of intangible assets
related to this acquisition. The intangible assets related to this acquisition consist of technology acquired, customer relationships, trade names and other assets
to be amortized on a straight-line basis over a period of three years.
5Min
On September 28, 2010, the Company completed the acquisition of 5 Minutes Ltd. ("5Min"), a company that provides a syndication platform for web-
based videos, for a purchase price of $64.7 million, net of cash acquired. The acquisition offers AOL and partners significant web distribution, which, along
with market conditions at the time of acquisition, contributed to a purchase price that resulted in the allocation of a significant portion of the purchase price to
goodwill. The Company recorded $49.6 million of goodwill (which is not deductible for tax purposes) and $20.0 million of intangible assets related to this
acquisition. The intangible assets associated with this acquisition consist of technology, advertiser relationships and a trade name to be amortized on a
straight-line basis over a weighted average period of approximately five years.
Other 2010 Acquisitions
• On September 28, 2010, the Company completed the acquisition of Thing Labs, Inc. ("Thing Labs"), a company that produces software to
simplify the creation and sharing of web content. This acquisition will allow the Company to continue its initiative to provide consumers with the
best venues to discover and share content.
• On September 29, 2010, the Company completed the acquisition of TechCrunch, Inc. ("TechCrunch"), a company that owns and operates a
network of websites dedicated to technology news, information and analysis. This business was acquired to enhance AOL's offerings of high-
quality, technology-oriented content.
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