Blizzard 2008 Annual Report Download - page 72

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58
2008 Acquisitions
On September 11, 2008, we completed an acquisition of Freestyle Games, Ltd.
(“Freestyle”), a premier United Kingdom based video game developer specializing in the music
based genre. Additionally, on November 10, 2008, we acquired Budcat Creations, LLC
(“Budcat”), a privately-owned video game developer based in Iowa City, Iowa. Budcat is an
award-winning development studio with expertise on the Wii and NDS. Pro forma consolidated
statements of operations for these acquisitions are not shown, as they would not differ materially
from reported results.
5. Investment income (loss), Net
Investment income (loss), net is comprised of the following (amounts in millions):
For the years
ended
December 31,
2008 2007 2006
Interest income.............................................................
.
$36 $1 $1
Interest expense............................................................
.
(3) (3) (18)
Unrealized loss on trading securities ...........................
.
(7) — —
Unrealized gain on put option from UBS ....................
.
10 — —
Net realized gain on investments .................................
.
4— —
Net realized and unrealized gains (losses) on foreign
exchange contracts...................................................
.
6(2) 2
Investment income (loss), net ......................................
.
$46 $(4) $(15)
6. Investments
Available-for-Sale Investments
The following table summarizes our short-term and long-term investments classified as
available-for-sale at December 31, 2008 (amounts in millions):
Amortized
cost
Gross
unrealized
gains
Gross
unrealized
losses Fair
value
Short-term investments:
Mortgage-backed securities ............... $8 $— $(1) $7
Long-term investments:
Taxable auction rate securities........... 27 —(4) 23
Total available-for-sale investments...... $35 $— $(5) $30