Yahoo 2015 Annual Report Download - page 121

Transactions completed in 2014
Flurry. On August 25, 2014, the Company completed the acquisition of Flurry, Inc. (“Flurry”), a
mobile data analytics company that optimizes mobile experiences for developers, marketers, and
users. The combined scale of Yahoo and Flurry created more personalized and inspiring app
experiences for users and enabled more effective mobile advertising solutions for brands seeking to
reach their audiences and gain cross-device insights.
The total purchase price of approximately $270 million consisted of cash consideration. Under the
terms of the agreement, the Company acquired all of the equity interests (including all outstanding
vested options) of Flurry. Outstanding Flurry unvested options were assumed and converted into
equivalent awards for Yahoo common stock valued at $4 million, which is being recognized as stock-
based compensation expense as the options vest over periods of up to four years.
In connection with the acquisition, the Company issued restricted stock units valued at $23 million,
which are being recognized as stock-based compensation expense as the restricted stock units vest
over four years.
The allocation of the purchase price of the assets acquired and liabilities assumed based on their
estimated fair values was as follows (in thousands):
Cash acquired $ 12,139
Other tangible assets acquired 51,235
Amortizable intangible assets:
Developed technology 7,100
Customer contracts and related relationships 47,600
Other 720
Goodwill 194,081
Total assets acquired 312,875
Liabilities assumed (43,205)
Total $269,670
The amortizable intangible assets have useful lives not exceeding five years and a weighted average
useful life of five years. The purchase price exceeded the estimated fair value of the tangible and
identifiable intangible assets and liabilities acquired and, as a result of the allocation, the Company
recorded goodwill of $194 million in connection with this transaction. Goodwill represents the excess
of the purchase price over the estimated fair value of the net tangible and identifiable intangible
assets acquired and is not deductible for tax purposes.
BrightRoll. On December 12, 2014, the Company completed the acquisition of BrightRoll, Inc.
(“BrightRoll”), a leading programmatic video advertising platform. The transaction combined Yahoo’s
premium-desktop and mobile video advertising inventory with BrightRoll’s programmatic video
platform and publisher relationships to bring substantial value to advertisers on both platforms.
The purchase price of $581 million exceeded the estimated fair value of the net tangible and
identifiable intangible assets and liabilities acquired and, as a result, the Company recorded goodwill
of $417 million in connection with this transaction. Under the terms of the agreement, the Company
acquired all of the equity interests (including all outstanding vested options) in BrightRoll and
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