Juno 2014 Annual Report Download - page 19

Table of Contents
We may evaluate a wide variety of potential strategic transactions that we believe may complement our existing businesses. However, we may not realize
the anticipated benefits and synergies of an acquisition, and our attempts at integrating an acquired business may not be successful. Acquiring a business,
service or technology involves many operational and financial risks, including risks relating to:
•disruption of our ongoing business and significant diversion of resources and management time from day-to-day responsibilities;
•acquisition financings that involve the issuance of potentially dilutive equity or the incurrence of debt;
•reduction of cash and other resources available for operations and other uses;
•exposure to risks specific to the acquired business, service or technology to which we are not currently exposed;
•risks of entering markets in which we have little or no direct prior experience;
•unforeseen obligations or liabilities, including future indemnification obligations;
•difficulty assimilating the acquired customer bases, technologies and operations;
•difficulty assimilating and retaining management and employees of the acquired business;
•potential impairment of relationships with users, customers or vendors as a result of changes in management of the acquired business or other
factors;
•large write-offs either at the time of the acquisition or in the future, the incurrence of restructuring and other exit costs, the amortization of
identifiable intangible assets, and the impairment of amounts capitalized as goodwill, intangible assets and other long-lived assets; and
•lack of, or inadequate, controls, policies and procedures appropriate for a public company, and the time, cost and difficulties related to the
implementation of such controls, policies and procedures or the remediation of any deficiencies.
In addition, an acquisition of a foreign business involves risks in addition to those set forth above, including risks associated with foreign currency
exchange rates, potentially unfamiliar economic, political and regulatory environments, and integration difficulties due to language, cultural, and
geographic differences. Any of these risks could harm our business, financial condition, results of operations, and cash flows.
Changes in laws and regulations and new laws and regulations may adversely affect our business, financial condition, results of operations, and cash
flows.
We are subject to a variety of international, federal, state, and local laws and regulations, including, without limitation, those relating to taxation, bulk
email or "spam," advertising, including, without limitation, targeted or behavioral advertising, user privacy and data protection, consumer protection,
antitrust, export, and unclaimed property. Compliance with the various laws and regulations, which in many instances are unclear or unsettled, is complex.
New laws and regulations, such as those being considered or recently enacted by certain states, the federal government, or international authorities related to
automatic-renewal practices, spam, user privacy, targeted or behavioral advertising, and taxation, could impact our revenues or certain of our business
practices or those of our advertisers. Any changes in the laws and regulations applicable to us, the enactment of any additional laws or regulations, or the
failure to comply with, or increased enforcement activity by regulators of, such laws and regulations, could significantly impact our services and products,
our costs, or the manner in which we or our advertisers conduct business, all of which could adversely impact our business, financial condition, results of
operations, and cash flows and cause our business to suffer.
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