eBay 2010 Annual Report Download - page 106

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eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Allocation of the purchase consideration for Gmarket is summarized as follows (in thousands):
Purchase Consideration
Net Tangible Assets
Acquired/(Liabilities
Assumed)
Purchased Intangible
Assets Goodwill
Gmarket Inc. ................... $1,226,968 $50,526 $378,496 $797,946
2008 Acquisition Activity
• Bill Me Later was acquired during the fourth quarter of 2008. Bill Me Later is a payments solution
company that enables U.S. merchants to offer, and U.S. consumers to obtain, credit at the point of sale
for ecommerce transactions and is included in our Payments segment. Bill Me Later’s purchase
consideration included cash of $817.0 million, fair value of options assumed of $87.7 million and
transaction costs of $9.9 million.
• Den Blå Avis and BilBasen were acquired during the fourth quarter of 2008. Den Blå Avis and
BilBasen are two leading online classifieds sites in Denmark and are included in our Marketplaces
segment. Den Blå Avis and BilBasen’s purchase consideration included cash of $392.0 million and
transaction costs of $2.1 million.
• Other acquisition activity during 2008 consisted of four acquisitions for an aggregate purchase
consideration of approximately $178.6 million, consisting primarily of cash. Three acquisitions are
included in our Marketplaces segment and one acquisition is included in our Payments segment.
Allocation of the purchase consideration for business combinations completed in 2008 is summarized as
follows (in thousands):
Purchase Consideration
Net Tangible Assets
Acquired/(Liabilities
Assumed)
Purchased Intangible
Assets Goodwill
Bill Me Later .................. $ 914,605 $ 26,097 $199,600 $ 688,908
Den Blå Avis and BilBasen ...... 394,098 (31,612) 144,100 281,610
Other ........................ 178,560 (6,809) 39,417 145,952
Total .................... $1,487,263 $(12,324) $383,117 $1,116,470
The purchase consideration for each acquisition was allocated to the tangible assets and intangible assets
acquired and liabilities assumed based on their estimated fair values on the acquisition date, with the remaining
unallocated purchase price recorded as goodwill. The fair value assigned to identifiable intangible assets acquired
has been determined primarily by using valuation methods that discount expected future cash flows to present
value using estimates and assumptions determined by management. Purchased identifiable intangible assets are
amortized on a straight-line basis over the respective useful lives.
The consolidated financial statements include the operating results of each business from the date of
acquisition. Pro forma results of operations for acquisitions completed during 2008, 2009 and 2010 have not been
presented because the effects of the acquisitions, individually and in the aggregate, were not material to our
financial results.
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