Yahoo 2008 Annual Report Download - page 50

•October 2006—Investment of approximately 20 percent interest in Right Media Inc. (“Right Media”), an
online advertising exchange. In July 2007, we purchased the remaining equity interests in Right Media Inc. for
a total purchase price of $524 million;
•October 2007—Acquired Zimbra, Inc. (“Zimbra”), a provider of e-mail and collaboration software for a total
purchase price of $303 million;
•October 2007—Acquired BlueLithium, Inc. (“BlueLithium”), an online global advertising network company
for a total purchase price of $255 million;
•November 2007—Purchased approximately 1 percent of Alibaba.com for a total purchase price of
approximately $101 million in the IPO on the Hong Kong Stock Exchange of Alibaba.com; and
•February 2008—Acquired Maven Networks, Inc. (“Maven”), a leading online video platform provider for
$143 million.
See Note 3—“Acquisitions” and Note 4—“Investments in Equity Interests” in the Notes to the consolidated
financial statements for additional information relating to these and other transactions.
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 each of the three years ended December 31, 2008 (dollars in thousands):
2006 2007 2008
Cash and cash equivalents ................................... $1,569,871 $ 1,513,930 $ 2,292,296
Short-term marketable debt securities .......................... 1,031,528 487,544 1,159,691
Long-term marketable debt securities .......................... 935,886 361,998 69,986
Total cash, cash equivalents, and marketable debt securities ........ $3,537,285 $ 2,363,472 $ 3,521,973
Percentage of total assets ................................... 31% 19% 26%
Cash Flow Highlights 2006 2007 2008
Net cash provided by operating activities ....................... $1,371,576 $ 1,918,899 $ 1,880,241
Net cash used in investing activities ........................... $ (193,681) $ (572,502) $(1,311,783)
Net cash (used in) provided by financing activities ............... $(1,094,624) $(1,442,008) $ 332,406
Our operating activities for each year in the three years ended December 31, 2008 have generated adequate cash
to meet our operating needs. As of December 31, 2008, we had cash, cash equivalents, and marketable debt
securities totaling $3.5 billion, compared to $2.4 billion as of December 31, 2007. During the year ended
December 31, 2008, we invested $79 million in direct stock repurchases, a net $675 million in capital
expenditures, and a net $209 million in acquisitions. The cash used for these investments was offset by $1.9
billion of cash generated from operating activities (including a $350 million one-time payment from AT&T Inc.)
and $363 million from the issuance of common stock as a result of the exercise of employee stock options. In
2008, $77 million was used for tax withholdings related to net share settlements of restricted stock awards and
restricted stock units.
We have accrued U.S. federal income taxes on the earnings of our foreign subsidiaries except to the extent the
earnings are considered indefinitely reinvested outside the U.S. As of December 31, 2008, approximately $1.5
billion of earnings held by our foreign subsidiaries and a corporate joint venture are designated as indefinitely
reinvested outside the U.S. If required for our operations in the U.S., most of the cash held abroad could be
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