Yahoo 2009 Annual Report Download - page 54

foreign currency fluctuations. Revenues and related expenses generated from our international subsidiaries are
generally denominated in the currencies of the local countries. Primary currencies include Australian dollars,
British pounds, Euros, Korean won, and Taiwan dollars. The statements of income of our international operations
are translated into U.S. dollars at exchange rates indicative of market rates during each applicable period. To the
extent the U.S. dollar strengthens against foreign currencies, the translation of these foreign currency-
denominated transactions results in reduced revenues, operating expenses, and net income for our International
segment. Similarly, our revenues, operating expenses, and net income will increase for our International segment
if the U.S. dollar weakens against foreign currencies. Using the foreign currency exchange rates from 2008, our
international revenues for 2009 would have been higher than we reported by approximately $176 million and our
International segment operating income before depreciation, amortization, and stock-based compensation
expense would have been higher than we reported by $18 million.
Transactions
Significant acquisitions, strategic investments, and other transactions completed in the last three years include the
following:
•July 2007—Purchased the remaining equity interests in Right Media, Inc., an online advertising exchange, 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;
•February 2008—Acquired Maven Networks, Inc. (“Maven”), a leading online video platform provider, for a
total purchase price of $143 million;
•May 2009—Sold our Gmarket shares for net proceeds of $120 million;
•July 2009—Entered into a binding letter agreement with Microsoft to negotiate and execute a Search and
Advertising Services and Sales Agreement and a License Agreement;
•September 2009—Sold our direct investment in Alibaba.com for net proceeds of $145 million;
•November 2009—Acquired Maktoob, a leading online portal in the Middle East, for a total purchase price of
$164 million; and
•December 2009—Entered into a Search and Advertising Services and Sales Agreement and License
Agreement with Microsoft pursuant to which Microsoft will become Yahoo!’s exclusive platform technology
provider for algorithmic and paid search services and Yahoo! will be the exclusive worldwide relationship
sales force for Yahoo!’s and Microsoft’s premium search advertisers.
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.
46