Yahoo 2008 Annual Report Download - page 77

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Yahoo! Inc.
Notes to Consolidated Financial Statements—(Continued)
Years Ended December 31,
2006 2007 2008
Diluted:
Numerator:
Net income for basic calculation ............................ $ 751,391 $ 660,000 $ 424,298
Effect of dilutive securities issued by equity investees ........... — — (11,501)
Net income for diluted calculation .......................... $ 751,391 $ 660,000 $ 412,797
Denominator:
Denominator for basic calculation .......................... 1,388,741 1,338,987 1,369,476
Weighted average effect of Yahoo! dilutive securities:
Restricted stock awards ............................... 2,164 7,437 6,143
Stock options ....................................... 30,196 22,492 16,514
Notes ............................................. 36,585 36,570 7,968
Denominator for diluted calculation ......................... 1,457,686 1,405,486 1,400,101
Net income per share—diluted ............................. $ 0.52 $ 0.47 $ 0.29
Note 3 A
CQUISITIONS
The following table summarizes significant acquisitions (including business combinations, asset acquisitions, and
strategic investments) completed during the three years ended December 31, 2008 (in millions):
Purchase
Price Goodwill
Amortizable
Intangibles
2006
Yahoo! 7 .................................................... $ 35 $ 16 $ 19
Gmarket Inc.(*) ............................................... $ 69 $ — $ —
Other acquisitions ............................................. $ 42 $ 27 $ 21
2007
Right Media .................................................. $524 $440 $104
Zimbra ...................................................... $303 $245 $ 79
BlueLithium ................................................. $255 $224 $ 42
Other acquisitions ............................................. $169 $ 74 $118
2008
Maven ...................................................... $143 $ 87 $ 65
Other acquisitions ............................................. $ 97 $ 51 $ 51
(*) During 2006, the Company acquired shares in Gmarket Inc. (“Gmarket”) for $61 million. During 2007, the
Company acquired additional shares in Gmarket for $8 million.
Transactions completed in 2006
Seven. On January 29, 2006, the Company and Seven Network Limited (“Seven”), a leading Australian media
company, completed a strategic partnership in which the Company contributed its Australian Internet business,
Yahoo! Australia and New Zealand (“Yahoo! Australia”), and Seven contributed its online assets, television and
magazine content, an option to purchase its 33 percent ownership interest in mobile solutions provider m.Net
Corporation Ltd, and cash of $7 million. The Company believed this strategic partnership and the contribution of
the respective businesses with their rich media and entertainment content would create a comprehensive and
engaging online experience for local users and advertisers. The Company obtained a 50 percent equity ownership
71