Yahoo 2010 Annual Report Download - page 75

Note 3 A CQUISITIONS
The following table summarizes significant acquisitions (including business combinations and asset acquisitions)
completed during the three years ended December 31, 2010 (in millions):
Purchase
Price Goodwill
Amortizable
Intangibles
2008
Maven ...................................................... $143 $ 87 $65
Other acquisitions ............................................. $ 97 $ 51 $51
2009
Maktoob .................................................... $164 $141 $19
Other acquisitions ............................................. $ 30 $ 16 $16
2010
All acquisitions ............................................... $159 $105 $50
Transactions completed in 2008
Maven. On February 11, 2008, the Company acquired Maven Networks, Inc. (“Maven”), a leading online video
platform provider. The Company believed that Maven would 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
The amortizable intangible assets have useful lives not exceeding six years and a weighted average useful life of
five years. No amounts have been allocated to in-process research and development and $87 million has been
allocated to goodwill. Goodwill represents the excess of the purchase price over the fair value of the net tangible
and identifiable intangible assets acquired and is not deductible for tax purposes. The goodwill recorded in
connection with this acquisition is primarily included in the Americas segment.
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