eBay 2000 Annual Report Download - page 71

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eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
111 Potrero Partners, LLC (""111 Potrero'') is a limited liability corporation organized in May 1996.
111 Potrero owns several commercial properties located in San Francisco and Los Angeles, which are
currently occupied by ButterÑelds and third parties.
HBJ Partners, LLC (""HBJ'') is a limited liability corporation organized in California in September
1996. HBJ owns several commercial properties located in San Francisco, which are currently occupied by
ButterÑelds and third parties. HBJ also has general partnership interests in 17600 Santa Fe Avenue Partners
and 2959 Victoria Street. As of December 31, 2000, ownership interests in the above partnerships were 94%
and 85%, respectively.
The aggregate consideration exchanged for the acquisition was 2,654,740 shares of eBay common stock.
The acquisition has been accounted for as a pooling of interests. In April 1999, ButterÑelds withdrew its
registration statement for its initial public oÅering. Accordingly, in the second quarter of 1999, eBay recorded
a charge of approximately $2.6 million related to the costs of the withdrawn oÅering.
alando.de.ag
On June 15, 1999, eBay acquired all of the outstanding stock of alando.de.ag (""alando''). alando began
operations on February 19, 1999 and is Germany's leading online personal trading community. The aggregate
consideration exchanged for the acquisition was 632,000 shares of eBay common stock. The acquisition has
been accounted for as a pooling of interests.
Half.com
On July 11, 2000, eBay acquired Half.com. Half.com was incorporated in Pennsylvania in June 1999 and
provides a Ñxed-price, person-to-person e-commerce site that allows people to buy and sell previously owned
goods at discounted prices.
In connection with the merger, eBay issued, or reserved for issuance, a total of approximately 5,484,000
shares of eBay common stock to Half.com's existing shareholders, option holders and warrant holders as
consideration for all shares of capital stock, options and warrants of Half.com held immediately prior to
consummation of the merger. The merger has been accounted for as a pooling-of-interests.
The results of operations previously reported by eBay and Half.com are summarized as follows (in
thousands):
Six Months Ended Year Ended
June 30, December 31,
1999 2000 1999
Net revenues:
eBay ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $92,280 $183,152 $224,724
Half.comÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì 887 Ì
$92,280 $184,039 $224,724
Net income (loss):
eBay ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 4,581 $ 17,878 $ 10,828
Half.comÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì (8,661) (1,261)
$ 4,581 $ 9,217 $ 9,567
There were no adjustments required to conform the accounting policies of Half.com to those of eBay.
See Subsequent Events Ì Note 16.
66