Yahoo 2010 Annual Report Download - page 50

Download and view the complete annual report

Please find page 50 of the 2010 Yahoo annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 128

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128

Our international operations expose us to foreign currency exchange rate fluctuations. Revenue ex-TAC 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, Japanese Yen, 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
consolidated revenue and operating expenses. Conversely, our consolidated revenue and operating expenses will
increase if the U.S. dollar weakens against foreign currencies. Using the foreign currency exchange rates from
the year ended December 31, 2009, revenue ex-TAC for the Americas segment for the year ended December 31,
2010 would have been lower than we reported by $11 million, revenue ex-TAC for the EMEA segment would
have been higher than we reported by $9 million, and revenue ex-TAC for the Asia Pacific segment would have
been lower than we reported by $44 million. Using the foreign currency exchange rates from the year ended
December 31, 2009, direct costs for the Americas segment for the year ended December 31, 2010 would have
been lower than we reported by $3 million, direct costs for the EMEA segment would have been higher than we
reported by $4 million, and direct costs for the Asia Pacific segment would have been lower than we reported by
$10 million.
Transactions
Significant acquisitions, strategic investments, dispositions, and other transactions completed in the last three
years include the following:
•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;
•December 2009—Entered into the Search Agreement and a License Agreement with Microsoft which provides
for Microsoft to be the exclusive algorithmic and paid search services provider on Yahoo! Properties and
non-exclusive provider of such services on Affiliate sites and for Yahoo! to be the exclusive worldwide
relationship sales force for Yahoo!’s and Microsoft’s premium search advertisers;
•February 2010—Sold Zimbra, Inc. for net proceeds of $100 million; and
•August 2010—Sold HotJobs for net proceeds of $225 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 acquisitions and investments may require the use of
cash.
48