<<Because this is a stock deal and does not involve any outlay of cash by Yahoo, is this true? Yahoo is not really buying Geocities, but is merging with them through a non-taxable stock swap. I think they may not have to write off anything here. >>
I was basing this on how they treated the Viaweb,Yoyodyne and their other acquisitions.
Even though it is an all stock deal, they still have to reflect it on the balance sheet and the financial statements. Viaweb was only around 48 million in stock though. I am assuming more details will be provided when they issue their 10Q. If you look at Yahoo's recent earnings announcement you will see how even though they are buying these companies with stock, they still must account for the full purchase price.
<<Pro forma net income for the fourth quarter of 1998 was
$25,043,000 or $0.21 per share diluted, excluding the effects of amortization
of intangible assets, a one-time charge of $2,100,000 incurred in connection
with the acquisition of Yoyodyne Entertainment, Inc., and a one-time charge of
$2,300,000 for in-process research and development purchased in the December
1998 acquisition of HyperParallel, Inc., a data analysis company. This
compares with pro forma net income of $1,909,000 or $0.02 per share diluted
for the fourth quarter of 1997, excluding the effect of a one-time charge of
$3,850,000 incurred in connection with the acquisition of Four11 Corporation.
Including the amortization of intangibles and one-time charges, the net income
for the fourth quarter of 1998 was $18,524,000 or $0.16 per share diluted as
compared to a net loss for the fourth quarter of 1997 of $1,941,000 or
$0.02 per share diluted.
Net revenues for fiscal 1998 were $203,270,000, nearly triple the net
revenues of $70,450,000 for fiscal 1997. Pro forma net income for fiscal
1998 was $49,933,000 or $0.45 per share diluted compared to a net loss of
$425,000 or $0.00 per share diluted in fiscal 1997. Pro forma fiscal
1998 results exclude the amortization of intangible assets, the second quarter
one-time charge of $15,000,000 for in-process research and development
purchased in the acquisition of Viaweb Inc., and the fourth quarter one-time
charges relating to the Yoyodyne and HyperParallel acquisitions. Including
the amortization of intangibles and one-time charges, fiscal 1998 net income
was $25,588,000 or $0.23 per share diluted. Pro forma fiscal 1997 results
exclude one-time charges of $25,095,000. Including these one-time charges,
the fiscal 1997 net loss was $25,520,000 or $0.29 per share diluted. In light
of the SEC's recent interpretation of the accounting for acquired in-process
technology, during the fourth quarter of 1998, Yahoo! reviewed the accounting
treatment used in connection with its acquisition of in-process technologies.
As a result and with the SEC's concurrence, Yahoo! has reduced the second
quarter of 1998 in-process research and development one-time charge from
$44,100,000 to $15,000,000 and adjusted the amortization of related intangible
assets for the second and third quarters of 1998.>>
From the third qtr 10Q:
NOTE 5 - ACQUISITION OF VIAWEB INC.
On June 10, 1998, the Company completed the acquisition of all
outstanding shares of Viaweb Inc. ("Viaweb"), a provider of software and
services for hosting online stores, through the issuance of 787,182 shares of
Yahoo! Common Stock. All outstanding options to purchase Viaweb common stock
were converted into options to purchase 122,252 shares of Yahoo! Common
Stock. The acquisition was accounted for as a purchase in accordance with
APB Opinion No. 16. Under the purchase method of accounting, the purchase
price is allocated to the assets acquired and liabilities assumed based on
their estimated fair values at the date of the acquisition. Results of
operations for Viaweb have been included with those of the Company for
periods subsequent to the date of acquisition. Pro forma net revenues, net
loss, and net loss per share for the three and nine months ended September
30, 1998 and 1997, giving effect to Viaweb's historical results of operations
prior to the acquisition, were not materially different from the Company's
results, as reported.
The total purchase price of the acquisition was $48,559,000 including
acquisition expenses of $1,750,000. The purchase price was allocated to the
assets acquired and liabilities assumed based on their estimated fair values
as follows:
In-processresearchanddevelopment$44,100,000Technologyandotherintangibleassets4,232,000Tangibleassetsacquired571,000Liabilitiesassumed(344,000)------------$48,559,000------------ |
