Some tout was on Bloomberg a few minutes ago praising YHOO and stating that Yahoo Japan alone was worth $6-7/share. I think we're gonna party like it's 1999.
Yahoo! Japan. During April 1996, the Company signed a joint venture agreement with SOFTBANK, which was
amended in September 1997, whereby Yahoo Japan Corporation ("Yahoo! Japan") was formed to establish and manage in Japan a Japanese version of the Yahoo! Internet Guide, develop related Japanese online navigational services, and conduct other related business. The investment in Yahoo! Japan is being accounted for using the equity method. As of December 31, 2002, the carrying value of the investment was $103.3 million and is recorded in other assets. The fair value of the Company's 34% ownership in Yahoo! Japan, based on the quoted trading price, was approximately $2.0 billion as of December 31, 2002.
During 2001 and 2000, Yahoo! Japan acquired the Company's equity interests in certain entities in Japan for total consideration of $8.9 million and $56.3 million, respectively. The 2001 acquisition was paid in cash and the 2000 acquisition was paid in shares of Yahoo! Japan Common Stock. As a result of the 2000 acquisition, the Company increased its investment in Yahoo! Japan, which resulted in approximately $40.8 million of goodwill to be amortized over seven years. This amortization ceased upon the adoption of SFAS 142. During the years ended December 31, 2001 and 2000, the Company recorded gains in other income of approximately $5.2 million and $40.8 million, respectively, from these transactions.
The Company records its share of the results of Yahoo! Japan one quarter in arrears within other income (loss), net. The following table presents Yahoo! Japan's condensed financial information, as derived from the Yahoo! Japan financial statements for the twelve months ended September 30, 2002 and 2001 (in thousands):
Years ended September 30,
2002
2001
Operating data:
Net revenues $ 343,680 $ 165,206
Gross profit $ 246,944 $ 146,707
Income from operations $ 124,522 $ 59,731
Net income $ 67,672 $ 34,258
Balance sheet data:
Current assets $ 184,385 $ 83,832
Noncurrent assets $ 97,552 $ 123,202
Current liabilities $ 75,949 $ 48,645
Noncurrent liabilities $ 7,278 $ 18,142
There were no differences between United States and Japanese generally accepted accounting principles that materially impacted the amounts reflected in the Company's financial statements.
.....
Our joint ventures with SOFTBANK and its affiliates, a holder of approximately 4% of our Common Stock as of December 31, 2002, include Yahoo! Germany, Yahoo! United Kingdom, Yahoo! France (collectively "Yahoo! Europe"), Yahoo! Japan and Yahoo! Korea. These joint ventures were formed to establish and manage local versions of our properties in the respective countries. With the exception of Yahoo! Japan, these joint ventures are operated and managed by us as a part of our global network. Yahoo! Japan is a publicly traded company in Japan that is majority owned by SOFTBANK. As of December 31, 2002, we owned approximately 70% of Yahoo! Europe, 34% of Yahoo! Japan and 67% of Yahoo! Korea. Yahoo! Europe and Yahoo! Korea are consolidated subsidiaries of Yahoo! Inc. The Company has no funding commitment to Yahoo! Japan. As of December 31, 2002, SOFTBANK and its affiliates owned the remaining interests in Yahoo! Europe and Yahoo! Korea not owned by Yahoo! and its affiliates.
sec.gov
Edit: They're back talking about YHOO again. Did CNBS buy out Bloomberg? |
