eBay 2005 Annual Report Download - page 96

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eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
Note 3 Ì Business Combinations, Goodwill and Intangible Assets:
Through both domestic and international acquisitions, we have continued to expand our business. The
following table summarizes our purchase acquisitions in 2004 and 2005 with aggregate purchase prices in
excess of $50 million (in thousands):
Net
Post Tangible Identifiable Deferred Unearned Aggregate
Year Acquisition Assets/ Intangible Tax Minority Stock-Based Purchase
Company Name Acquired Ownership (Liabilities) Assets Liabilities Interest Compensation Goodwill Price
mobile.deÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2004 100% $ 11,183 $ 30,500 $ (13,115) $ Ì $ Ì $ 123,885 $ 152,453
Baazee.comÏÏÏÏÏÏÏÏÏÏÏÏÏ 2004 100% 2,747 2,350 (905) Ì Ì 46,125 50,317
Marktplaats.nl ÏÏÏÏÏÏÏÏÏÏ 2004 100% (1,902) 38,500 (11,778) Ì Ì 266,570 291,390
Internet AuctionÏÏÏÏÏÏÏÏÏ 2004 99.9% N/A 60,143 (17,864) 43,833 Ì 438,684 524,796
Rent.comÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2005 100% 18,050 61,800 (24,924) Ì Ì 380,439 435,365
International classified
websitesÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2005 100% (201) 13,800 (3,786) Ì Ì 71,771 81,584
Shopping.comÏÏÏÏÏÏÏÏÏÏÏ 2005 100% 145,898 133,600 (29,683) Ì 16,759 418,711 685,285
SkypeÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2005 100% (1,610) 280,300 (71,474) 55,249 2,330,961 2,593,426
VeriSign's Payment
Gateway Business ÏÏÏÏÏ 2005 100% (8,804) 106,600 Ì Ì Ì 275,989 373,785
Tangible net assets were valued at their respective carrying amounts as we believe that these amounts
approximated their current fair values at the respective acquisition dates. The valuation of identifiable
intangible assets acquired reflects management's estimates based on, among other factors, use of established
valuation methods. Such assets consist of customer lists and user base, trademarks and trade names, developed
technologies and other acquired intangible assets including contractual agreements. Identifiable intangible
assets are amortized over the period of estimated benefit using the straight-line method and the estimated
useful lives of one to eight years. We believe the straight-line method of amortization represents our best
estimate of the distribution of the economic value of the identifiable intangible assets. Goodwill represents the
excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in
each business combination. The following table summarizes our acquired intangible assets by type related to
the above purchase acquisitions (in thousands):
Total
Customer Trade Other Acquired
Year List/ name/ Developed Intangible Intangible
Company Name Acquired User Base Trademarks Technologies Assets Assets
mobile.deÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2004 $20,400 $4,600 $5,500 $ Ì $30,500
Baazee.comÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2004 600 150 100 1,500 2,350
Marktplaats.nlÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2004 Ì 37,000 1,500 Ì 38,500
Internet AuctionÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2004 46,510 12,239 1,394 Ì 60,143
Rent.comÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2005 34,500 18,000 8,200 1,100 61,800
International classified websites ÏÏÏÏÏÏÏÏ 2005 2,600 11,200 Ì Ì 13,800
Shopping.com ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2005 73,600 38,700 21,300 Ì 133,600
SkypeÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2005 27,700 243,800 8,000 800 280,300
VeriSign's Payment Gateway Business ÏÏ 2005 86,700 400 19,500 Ì 106,600
The results of operations for periods prior to our acquisition for each acquisition during 2003, 2004 and
2005, both individually and in the aggregate, except for Skype, were not material to our consolidated
statement of income and, accordingly, pro forma results of operations have not been presented.
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