eBay 2004 Annual Report Download - page 107

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eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
price has been allocated to the tangible and intangible assets acquired and liabilities assumed on the basis of
their respective estimated fair values on the acquisition date.
The estimated useful economic lives of the identiÑable intangible assets acquired in the mobile.de
acquisition are eight years for the user base, two years for the developed technology and two years for the trade
name. The identiÑable intangible assets are being amortized using the straight-line method over their useful
economic lives.
During the six months ended December 31, 2004, we recorded additional acquisition-related liabilities
primarily in relation to a provision to terminate a lease for redundant facilities. At December 31, 2004, the
balance related to these acquisition-related liabilities was approximately $3.6 million. The Ñnal purchase price
allocation will depend primarily upon our Ñnal determination of the provision to terminate the lease for
redundant facilities.
Baazee.com Acquisition
On August 2, 2004, we acquired a 100% interest in Baazee.com for a cash purchase price of
approximately $50 million. Baazee.com is an online marketplace in India. Through this acquisition, we have
established eBay in India and will open our global online marketplace to Baazee.com's strong and growing
community. The total purchase price recorded was approximately $50 million, including $1 million in
estimated acquisition-related expenses. We accounted for the acquisition as a purchase transaction and,
accordingly, the purchase price has been allocated to the tangible and intangible assets acquired and liabilities
assumed on the basis of their respective estimated fair values on the acquisition date.
The estimated useful economic lives of the identiÑable intangible assets acquired in the Baazee.com
acquisition are three years for the noncompete agreement, three years for the user base, one year for the trade
name, and one year for the developed technology. The identiÑable intangible assets are being amortized using
the straight-line method over their useful economic lives.
Marktplaats.nl Acquisition
On November 10, 2004, we acquired a 100% interest in Marktplaats.nl (""Marktplaats'') for a cash
purchase price of approximately 226 million Euros. The total purchase price recorded was approximately
$291 million. Marktplaats.nl is an online classiÑed website in the Netherlands. The acquisition allows us to
expand our e-commerce position in the Netherlands while adding to our growing knowledge of classiÑeds-style
trading. The total purchase price recorded was approximately $291.4 million, including approximately
$2.0 million in estimated acquisition-related expenses. We accounted for the acquisition as a purchase
transaction and, accordingly, the purchase price has been allocated to the tangible and intangible assets
acquired and liabilities assumed on the basis of their respective estimated fair values on the acquisition date.
The estimated useful economic lives of the identiÑable intangible assets acquired in the Marktplaats.nl
acquisition are Ñve years for the trade name and eighteen months for the developed technology. The
identiÑable intangible assets are being amortized using the straight-line method over their useful economic
lives.
PayPal Acquisition-Related Liabilities
During the year ended December 31, 2003, we Ñnalized our formal plan to exit certain activities and
integrate certain facilities of PayPal. This plan included provisions to terminate leases for redundant facilities,
dispose of redundant Ñxed assets and leasehold improvements, resolve certain pre-acquisition legal contingen-
cies, provide various employee-related beneÑts and exit certain contractual obligations.
105