Yahoo 2005 Annual Report Download - page 53

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47
Acquisitions
Significant acquisitions and strategic investments completed in the last three years include the following:
• March 2003 — Inktomi, a provider of Internet search and paid inclusion services for a total
purchase price of $290 million;
• October 2003 — Overture, a provider of commercial search services including sponsored search
services for a total purchase price of $1.7 billion;
• January 2004 — 3721, a Hong Kong-based software development company focused on keyword
search technology for a total purchase price of $95 million. In October 2005, we subsequently
divested 3721 as part of Yahoo! China which was partial consideration for our investment in
Alibaba;
• April 2004 — Kelkoo, a European online comparison shopping service for a total purchase price of
$571 million;
• October 2004 — Musicmatch, a provider of personalized music software and services for a total
purchase price of $158 million;
• February 2005 — Verdisoft, a software development company for a total purchase price of $58
million as well as restricted stock valued at $35 million;
• October 2005 — Strategic investment of approximately 46 percent (40 percent on a fully diluted
basis) of the outstanding common stock of Alibaba, an e-commerce company based in China in
exchange for $1.0 billion in cash and the contribution of Yahoo! China; and
• November 2005 — Purchase of the remaining outstanding shares of Yahoo! Europe and Yahoo!
Korea for a total purchase price of $501 million.
See Note 3 — “Acquisitions” in the consolidated financial statements for additional information relating to
these and other acquisitions.
We expect to continue to evaluate possible acquisitions of, or strategic investments in, businesses,
products, and technologies that are complementary to our business, which may require the use of cash.
Liquidity and Capital Resources
As of and for the years ended December 31, (dollars in thousands):
2003 2004 2005
Cash and cash equivalents $ 415,892 $ 823,723 $ 1,429,693
Marketable debt securities 2,150,323 2,918,539 2,570,155
Total cash, cash equivalents, and marketable debt securities $ 2,566,215 $ 3,742,262 $ 3,999,848
Percentage of total assets 43% 41 % 37%
2003 2004 2005
Net cash provided by operating activities $ 428,144 $ 1,089,821 $ 1,711,383
Net cash used in investing activities $ (1,342,337) $ (1,292,849 ) $ (821,930)
Net cash provided by (used in) financing activities $ 1,086,326 $ 580,967 $ (250,600)
Our operating activities for each year in the three years ended December 31, 2005 have generated
adequate cash to meet our operating needs. As of December 31, 2005, we had cash, cash equivalents and
marketable debt securities totaling $4.0 billion, an increase of $258 million compared to $3.7 billion as of
December 31, 2004. The principal components of the increase were cash generated from operating