Yahoo 2008 Annual Report Download - page 82

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Yahoo! Inc.
Notes to Consolidated Financial Statements—(Continued)
The results of operations for Right Media, Zimbra, BlueLithium, and certain other business combinations have
been included in the Company’s consolidated statements of operations since the completion of the acquisitions
during the year ended December 31, 2007. The following unaudited pro forma financial information presents the
combined results of the Company and the 2007 acquisitions as if the acquisitions had occurred at the beginning
of 2006 (in thousands, except per share amounts):
Year Ended
December 31,
2006
Year Ended
December 31,
2007
Net revenues ........................................................ $6,522,959 $7,054,888
Net income ......................................................... $ 607,208 $ 511,858
Net income per share—basic ........................................... $ 0.44 $ 0.38
Net income per share—diluted ......................................... $ 0.41 $ 0.36
The above unaudited pro forma financial information includes adjustments for interest income on cash disbursed
for the acquisitions, amortization of identifiable intangible assets, stock-based compensation expense, and related
tax effects.
Transactions completed in 2008
Maven. On February 11, 2008, the Company acquired Maven Networks, Inc. (“Maven”), a leading online video
platform provider. The Company believes that Maven will assist the Company in expanding state-of-the-art
consumer video and advertising experiences on Yahoo! and the Company’s network of video publishers across
the Web. The purchase price exceeded the fair value of the net tangible and identifiable intangible assets acquired
from Maven 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 Maven. Maven stockholders were paid in cash and outstanding Maven options and
restricted stock units were assumed. Assumed Maven options and restricted stock units are exercisable for, or
will settle in, shares of Yahoo! common stock.
The total purchase price of $143 million consisted of $141 million in cash consideration and $2 million of direct
transaction costs. In connection with the acquisition, the Company issued stock-based awards valued at
$21 million which is being recognized as stock-based compensation expense as the awards vest over a period of
up to four years.
The allocation of the purchase price of the assets acquired and liabilities assumed based on their fair values was
as follows (in thousands):
Cash acquired ..................................................................... $ 257
Other tangible assets acquired ........................................................ 16,869
Amortizable intangible assets:
Customer contracts and related relationships ......................................... 7,100
Developed technology and patents ................................................. 57,100
Trade name, trademark, and domain name .......................................... 1,200
Goodwill ......................................................................... 87,404
Total assets acquired ........................................................... 169,930
Liabilities assumed ................................................................. (3,628)
Deferred income taxes .............................................................. (23,485)
Total ........................................................................ $142,817
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