Yahoo 2010 Annual Report Download - page 77

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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 included in the EMEA segment.
Other Acquisitions—Business Combinations. During the year ended December 31, 2009, the Company acquired
two other companies, which were accounted for as business combinations. The total purchase price for these
acquisitions was $30 million. The total cash consideration of $30 million less cash acquired of $2 million
resulted in a net cash outlay of $28 million. Of the purchase price, $16 million was allocated to goodwill, $16
million to amortizable intangible assets, $2 million to tangible assets, $2 million to cash acquired, and $6 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.
The Company’s business combinations completed in 2009 did not have a material impact on the Company’s
consolidated financial statements, and therefore pro forma disclosures have not been presented.
Transactions completed in 2010
All Acquisitions—Business Combinations. During the year ended December 31, 2010, the Company acquired
four companies, which were accounted for as business combinations. The total purchase price for these
acquisitions was $159 million. The total cash consideration of $159 million less cash acquired of $2 million
resulted in a net cash outlay of $157 million. Of the purchase price, $105 million was allocated to goodwill, $50
million to amortizable intangible assets, $27 million to tangible assets, $2 million to cash acquired, and $25
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.
The Company’s business combinations completed in 2010 did not have a material impact on the Company’s
consolidated financial statements, and therefore pro forma disclosures have not been presented.
Note 4 I
NVESTMENTS IN
E
QUITY
I
NTERESTS
As of December 31, investments in equity interests consisted of the following (dollars in thousands):
2009 2010
Percent
Ownership
of
Common
Stock
Alibaba Group ............................................... $2,167,007 $2,280,602 43%
Yahoo Japan ................................................ 1,329,281 1,731,287 35%
Total ................................................... $3,496,288 $4,011,889
Equity Investment in Alibaba Group. On October 23, 2005, the Company acquired approximately 46 percent of
the outstanding common stock of Alibaba Group, which represented approximately 40 percent on a fully diluted
basis, in exchange for $1.0 billion in cash, the contribution of the Company’s China-based businesses, including
3721 Network Software Company Limited (“Yahoo! China”), and direct transaction costs of $8 million. Another
investor in Alibaba Group is SOFTBANK. Alibaba Group is a privately-held company. Through its investment
in Alibaba Group, the Company has combined its search capabilities with Alibaba Group’s leading online
marketplace and online payment system and Alibaba Group’s strong local presence, expertise, and vision in the
China market. These factors contributed to a purchase price in excess of the Company’s share of the fair value of
Alibaba Group’s net tangible and intangible assets acquired resulting in goodwill.
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