Yahoo 1998 Annual Report Download - page 47

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INVESTMENTS
At December 31, 1998, short and long-term investments in marketable securities
were classified as available-for-sale as follows (in thousands):
Gross Gross Gross Estimated
Amortized Unrealized Unrealized Fair
Costs Gains Losses Value
U.S. Government and agencies $ 331,757 $ 611 $ – $ 332,368
Municipal bonds 12,893 81 – 12,974
Corporate debt securities 8,584 26 – 8,610
Corporate equity securities 7,454 33,885 – 41,339
Other 3,020 – (20) 3,000
$ 363,708 $ 34,603 $ (20) $ 398,291
The contractual maturities of debt securities classified as available-for-sale as of
December 31, 1998 are as follows (in thousands):
Estimated
Fair Value
Due within one year $ 308,025
Due after one year through two years 48,927
$ 356,952
At December 31, 1997, short and long-term investments in marketable securities
were classified as available-for-sale and consisted of 81% corporate debt securities,
8% debt securities of the U.S. Government and its agencies, 4% municipal debt secu-
rities, and 7% foreign debt securities. At December 31, 1997, the fair value of the
investments approximated cost.
RELATED PARTY TRANSACTIONS
During 1998, 1997 and 1996, the Company recognized net revenues of approximately
$10.3 million, $3.1 million, and $2.4 million, respectively, on advertising contracts
and publication, development, and licensing arrangements with SOFTBANK and its
related companies (such as E*Trade Group, Inc., Kingston Technology Company,
and E-Loan, Inc.), a holder of approximately 30% of the Company’s Common Stock
at December 31, 1998. Prices on these contracts were comparable to those given to
other similar customers of the Company. Additionally, three SOFTBANK-related
companies provided Internet access and sales and marketing-related services for
fees of approximately $3.1 million, $3.2 million, and $2.3 million during 1998,
1997, and 1996, respectively. Sequoia Capital, a holder of approximately 3% of the
Company’s Common Stock at December 31, 1998, was also an investor in one of
these SOFTBANK-related companies.
ACQUISITIONS
Acquisition of NetControls. On J uly 31, 1997, the Company entered into a stock
purchase agreement to acquire all of the outstanding capital stock of NetControls,
Inc. for 148,668 shares of the Company’s Common Stock. The acquisition was
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