Classmates.com 2007 Annual Report Download - page 105

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UNITED ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
2. ACQUISITIONS (Continued)
The purchase price was allocated based on the estimated fair values of assets and liabilities, including identifiable intangible assets. The
purchase price allocation is considered final. The following table summarizes the net liabilities assumed and the intangible assets and goodwill
acquired in connection with the acquisition (in thousands):
The weighted-average amortizable life of the acquired intangible assets is 4.8 years. The acquisition was treated as an acquisition of net
assets for tax purposes and, accordingly, the $5.7 million of goodwill acquired is tax deductible. The pro forma effect of the transaction is
immaterial to the consolidated financial statements.
In the December 2006 quarter, the Company recorded impairment charges totaling $8.8 million related to its photo sharing service (see
Note 6). We made the decision during 2007 to exit our photo sharing business and we have entered into a commercial arrangement with a third
-
party in connection therewith.
F-23
Description
Estimated
Fair
Value
Estimated
Amortizable
Life
Net liabilities assumed:
Property and equipment
$
4
Deferred revenue
(190
)
Total net liabilities assumed
(186
)
Intangible assets acquired:
Pay accounts
330
2 years
Proprietary rights
20
5 years
Software and technology
4,200
5 years
Total intangible assets acquired
4,550
Goodwill
5,738
Total purchase price
$
10,102