eBay 2011 Annual Report Download - page 107

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Pro forma financial information
The unaudited pro forma financial information in the table below summarizes the combined results of our operations and those of GSI for
the periods shown as though the acquisition of GSI and the sale of the divested businesses had occurred as of the beginning of fiscal year 2010.
The pro forma financial information for the periods presented includes the business combination accounting effects of the acquisition, including
amortization charges from acquired intangible assets. The pro forma financial information as presented below is for informational purposes only,
is subject to a number of estimates, assumptions and other uncertainties, and is not indicative of the results of operations that would have been
achieved if the acquisition and divestiture had taken place at January 1, 2010. The unaudited pro forma financial information is as follows (in
thousands, except per share amounts):
brands4friends
Brands4friends, an online shopping club for fashion and lifestyle in Germany, was acquired during the first quarter of 2011 for total cash
consideration of approximately $193.2 million . This company is included in our Marketplaces segment. The allocation of the purchase price for
this acquisition has been prepared on a preliminary basis and changes to that allocation may occur as additional information becomes available.
Our consolidated financial statements include the operating results of brands4friends from the date of acquisition. Pro forma results of operations
have not been presented because the effect of the acquisition was not material to our consolidated results of operations.
GittiGidiyor
In the second quarter of 2011, we acquired additional shares of GittiGidiyor, an online marketplace in Turkey. We previously held a non-
controlling interest in GittiGidiyor, and following the completion of the acquisition of these additional shares, we own approximately 93% of the
outstanding shares of GittiGidiyor. The following table summarizes the purchase consideration (in thousands):
This company is included in our Marketplaces segment. As a result of obtaining control over GittiGidiyor, our previously held 10%
interest
was remeasured to fair value resulting in a gain of $17.1 million . The gain has been recognized in interest and other, net in our consolidated
statement of income. We recorded the remaining non-controlling interest in additional paid-in capital in our consolidated balance sheet as the
amount is not significant. The allocation of the purchase price for this acquisition has been prepared on a preliminary basis and changes to that
allocation may occur as additional information becomes available. Our consolidated financial statements include the operating results of
GittiGidiyor from the date of acquisition. Pro forma results of operations have not been presented because the effect of the acquisition was not
material to our consolidated results of operations.
Zong
Zong is a provider of payment services through mobile carrier billing. We completed the acquisition of Zong on August 11, 2011 , for total
cash consideration of approximately $231.7 million . The business is included in our Payments segment. The allocation of the purchase price for
this acquisition has been prepared on a preliminary basis and changes to that allocation may occur as additional information becomes available.
Our consolidated financial statements include the operating results of Zong from the date of acquisition. Pro forma results of operations have not
been presented because the effect of the acquisition was not material to our consolidated results of operations
F-16
Year Ended December 31,
2011
2010
Total revenues
$
12,037,877
$
10,023,866
Net income
3,169,301
1,682,396
Basic earnings per share
2.45
1.29
Diluted earnings per share
$
2.41
$
1.27
Cash paid
$
182,068
Fair value of non-controlling interest
31,495
Fair value of previously held equity interest
21,715
Total purchase consideration
$
235,278