eBay 2012 Annual Report Download - page 108

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brands4friends
brands4friends, an online shopping club for fashion and lifestyle in Germany, was acquired during the first quarter of 2011 for total cash
consideration of approximately $193 million . This company is included in our Marketplaces segment. Our consolidated financial statements
include the operating results of brands4friends from the date of acquisition. Pro forma results of operations have not been presented because the
effect of the acquisition was not material to our consolidated results of operations.
GittiGidiyor
In the second quarter of 2011, we acquired additional shares of GittiGidiyor, an online marketplace in Turkey. We previously held a non-
controlling interest in GittiGidiyor, and following the completion of the acquisition of these additional shares, we own approximately 93%
of the
outstanding shares of GittiGidiyor. The following table summarizes the purchase consideration (in millions):
This company is included in our Marketplaces segment. As a result of obtaining control over GittiGidiyor, our previously held 10%
interest
was remeasured to fair value resulting in a gain of $17 million . The gain has been recognized in interest and other, net in our consolidated
statement of income. We recorded the remaining non-controlling interest in additional paid-in capital in our consolidated balance sheet as the
amount is not significant. Our consolidated financial statements include the operating results of GittiGidiyor from the date of acquisition. Pro
forma results of operations have not been presented because the effect of the acquisition was not material to our consolidated results of
operations.
Zong
Zong is a provider of payment services through mobile carrier billing. We completed the acquisition of Zong on August 11, 2011 , for total
cash consideration of approximately $232 million . The business is included in our Payments segment. Our consolidated financial statements
include the operating results of Zong from the date of acquisition. Pro forma results of operations have not been presented because the effect of
the acquisition was not material to our consolidated results of operations
Other
We completed our acquisition of Magento, which operates an ecommerce storefront platform, on August 16, 2011 . We previously held a
non-controlling interest in Magento of 49.9% of the outstanding shares, and following the completion of the acquisition, we own 100% of the
outstanding shares of Magento. As a result of obtaining control over Magento, our previously held interest was remeasured to fair value, which
resulted in a gain of $56 million . The gain has been recognized in interest and other, net in our consolidated statement of income. Our
consolidated financial statements include the operating results of Magento from the date of acquisition. Magento is included in our X.commerce
initiative. Pro forma results of operations have not been presented because the effect of the acquisition was not material to our consolidated
results of operations.
Other acquisition activity during 2011 consisted of eight acquisitions. four acquisitions are included in our Marketplaces segment and four
acquisitions are included in our Payments segment. The purchase consideration for these acquisitions consisted solely of cash. Our consolidated
financial statements include the operating results of all of these acquisitions from the respective dates of acquisition. Pro forma results of
operations have not been presented because the effect of these acquisitions was not material to our consolidated results of operations.
2010 Acquisition Activity
We acquired three companies during 2010 for aggregate purchase consideration of $96 million consisting primarily of cash. Each of these
three companies is included in our Marketplaces segment. Allocation of the purchase consideration resulted in net tangible assets of $0.3
million , purchased intangible assets of $18 million and goodwill of $78 million .
F-16
Cash paid
$
182
Fair value of non-controlling interest
31
Fair value of previously held equity interest
22
Total purchase consideration
$
235
•
Magento
•
Other