Classmates.com 2003 Annual Report Download - page 56

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F-18
The weighted average amortizable life of all acquired intangible assets is 3.9 years. The goodwill is not deductible for tax purposes.
BlueLight
On November 4, 2002, the Company acquired the Internet access assets of BlueLight. The acquisition has been accounted for under the
purchase method in accordance with SFAS No. 141. The primary reason for the acquisition was to acquire BlueLight's pay user base in order to
accelerate the Company's pay user growth and leverage its operating and cost infrastructure.
The purchase price of approximately $8.4 million, including $0.1 million of acquisition-
related costs, was paid in cash and allocated to the
assets acquired based on their estimated fair values, including identifiable intangible assets. The following table summarizes the net assets
acquired in connection with the acquisition (in thousands):
The weighted average amortizable life of all acquired intangible assets is 3.9 years.
The following summarized unaudited pro forma financial information for fiscal 2002 assumes that the Merger had occurred at the
beginning of the period presented (in thousands, except per share amounts). The information excludes the acquisition of the Internet access
assets of BlueLight since the pro forma effect of that transaction is immaterial.
F-19
3. ACQUISITION AND RESTRUCTURING COSTS
In connection with the Merger, United Online incurred the following acquisition costs, which have been capitalized and included as part of
the purchase price (in thousands):
Asset Description
Estimated
Fair Value
Estimated
Amortizable
Life
Net tangible assets acquired:
Accounts receivable $
1,611
Property and equipment
585
Accounts payable
(649
)
Deferred service liabilities
(1,044
)
Total net tangible assets acquired
503
Intangible assets acquired:
Pay subscribers
7,500
4 years
Proprietary rights
235
3 years
Software and technology
150
2.5 years
Total intangible assets acquired
7,885
Total purchase price $
8,388
Year Ended
June 30, 2002
(unaudited)
Revenues
$
195,423
Net loss
$
(49,553
)
Net loss per share
$
(1.27
)