Yahoo 2009 Annual Report Download - page 84

Yahoo! Inc.
Notes to Consolidated Financial Statements—(Continued)
amortizable intangible assets, $9 million to tangible assets, $25 million to cash acquired, and $30 million to net
assumed liabilities. 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.
Other Acquisitions—Asset Acquisitions. During the year ended December 31, 2008, the Company acquired one
company, which was accounted for as an asset acquisition. The total purchase price was $26 million and
consisted of $25 million in cash consideration, and $1 million of direct transaction costs. For accounting
purposes, approximately $36 million was allocated to amortizable intangible assets and $10 million to net
assumed liabilities, primarily deferred income tax liabilities. In connection with the acquisition, the Company
also issued stock-based awards valued at approximately $4 million which is being recognized as stock-based
compensation expense as the awards vest over a period of up to three years.
The Company’s business combinations completed in 2008 do not have a material impact on the Company’s
results of operations, and therefore pro forma disclosures have not been presented.
Transactions completed in 2009
Maktoob. On November 11, 2009, the Company acquired Maktoob.com, Inc. (“Maktoob”), a leading online
portal in the Middle East. The Company believes the acquisition of Maktoob will accelerate the Company’s
growth in the Middle East through Maktoob’s existing strong position in the region and the ability to deliver
users a compelling local experience by combining Maktoob’s experienced team with Yahoo!’s scalable
technology and products. The purchase price exceeded the fair value of the net tangible and identifiable
intangible assets acquired from Maktoob 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) in Maktoob. Maktoob stockholders and vested optionholders were paid in cash, and
outstanding Maktoob unvested options were assumed. Assumed options are exercisable for shares of Yahoo!
common stock.
The total purchase price of $164 million consisted of cash consideration. In connection with the acquisition, the
Company issued stock-based awards valued at $1 million which is being recognized as stock-based
compensation expense as the awards vest over a period of up to two years.
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 ...................................................................... $ 789
Other tangible assets acquired ......................................................... 6,986
Amortizable intangible assets:
Customer contracts and related relationships .......................................... 1,900
Developed technology and patents .................................................. 13,100
Trade name, trademark, and domain name ........................................... 4,400
Goodwill .......................................................................... 142,056
Total assets acquired ............................................................ 169,231
Liabilities assumed .................................................................. (4,794)
Total ......................................................................... $164,437
The amortizable intangible assets have useful lives not exceeding five years and a weighted average useful life of
five years. No amounts have been allocated to in-process research and development and $142 million has been
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