Yahoo 2007 Annual Report Download - page 79

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The preliminary allocation of the purchase price of the assets acquired and liabilities assumed based on their fair
values was as follows (in thousands):
Cash acquired ........................................................ $ 10,663
Other tangible assets acquired ............................................. 18,564
Amortizable intangible assets:
Customer contracts and related relationships ................................ 13,200
Developed technology and patents ........................................ 65,400
Trade name, trademark, and domain name .................................. 700
Goodwill ............................................................ 241,648
Total assets acquired .................................................. 350,175
Liabilities assumed ..................................................... (16,003)
Deferred income taxes .................................................. (31,720)
Total ............................................................. $302,452
The amortizable intangible assets have useful lives not exceeding seven years and a weighted average useful life of
four years. No amounts have been allocated to in-process research and development and $242 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. The goodwill recorded in connection with this
acquisition is included in the United States segment. The Company may make additional adjustments to the
purchase price allocation related to goodwill and tangible assets acquired.
BlueLithium. On October 15, 2007, the Company acquired BlueLithium, Inc. (“BlueLithium”), an online global
ad network. The Company believes that BlueLithium complements the Company’s leading advertising tools and
capabilities. The purchase price exceeded the fair value of the net tangible and intangible assets acquired from
BlueLithium and as a result, the Company recorded goodwill in connection with this transaction. Under the terms
of the agreement, the Company acquired all of the equity interests (including all outstanding options and restricted
stock units) in BlueLithium. BlueLithium stockholders were paid in cash and outstanding BlueLithium options and
restricted stock units were assumed. Assumed BlueLithium options and restricted stock units will be exercisable
for, or will settle in, shares of Yahoo! common stock.
The total purchase price of $255 million consisted of $245 million in cash consideration, $8 million in equity
assumed/exchanged, and $2 million of direct transaction costs. The $245 million of total cash consideration less
cash acquired of $10 million resulted in a net cash outlay of $235 million. In connection with the acquisition, the
Company issued stock-based awards valued at $47 million which is being recognized as stock-based compensation
expense as the awards vest over a period of up to four years.
77
Yahoo! Inc.
Notes to Consolidated Financial Statements — (Continued)