Yahoo 2005 Annual Report Download - page 80

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74
The allocation of the purchase price to the assets acquired and liabilities assumed based on the fair values
was as follows (in thousands):
Cash acquired $ 38,817
Other tangible assets acquired 24,068
Amortizable intangible assets:
Customer, affiliate and advertiser related relationships 36,100
Developed technology and patents 9,100
Trade name, trademark and domain name 61,300
Goodwill 453,555
Total assets acquired 622,940
Liabilities assumed (51,832)
Total $ 571,108
The amortizable intangible assets have useful lives not exceeding five years and a weighted average useful
life of approximately 5 years. No amount has been allocated to in-process research and development and
$454 million has been allocated to goodwill. Goodwill represents the excess of the purchase price over the
fair value of the net tangible and intangible assets acquired and is not deductible for tax purposes.
Musicmatch. On October 18, 2004, the Company completed the acquisition of Musicmatch, Inc.
(“Musicmatch”), a leading provider of personalized music software and services. The acquisition
significantly increased the Company’s presence in the digital music business and together with the
Company’s existing music services, Yahoo! Music, provided one of the most comprehensive suite of music
services for users, marketers, artists and record labels. These factors contributed to a purchase price in
excess of the fair value of net tangible and intangible assets acquired from Musicmatch and as a result, the
Company has recorded goodwill in connection with this transaction.
The total purchase price of $158 million consisted of $157 million in cash consideration and direct
transaction costs of $1 million. The $157 million of total cash consideration less cash acquired of
$3 million resulted in a net cash outlay of $154 million.
The allocation of the purchase price to the assets acquired and liabilities assumed based on the fair values
was as follows (in thousands):
Cash acquired $ 2,516
Other tangible assets acquired 8,591
Amortizable intangible assets:
Customer contracts and related relationships 1,700
Developed technology and patents 18,100
Trade name, trademark and domain name 1,100
Goodwill 171,633
Total assets acquired 203,640
Liabilities assumed (45,317)
Total $ 158,323
The amortizable intangible assets have useful lives of three years. No amount has been allocated to in-
process research and development and $172 million has been allocated to goodwill. Goodwill represents
the excess of the purchase price over the fair value of the net tangible and intangible assets acquired and is
not deductible for tax purposes.