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Table of Contents
IAC/INTERACTIVECORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 7—LONG-TERM INVESTMENTS
The balance of long-term investments is as follows (in thousands):
Long-term marketable equity securities
Certain marketable equity securities that were considered long-term at December 31, 2008 are now considered short-term and included in
"Marketable securities" in the accompanying consolidated balance sheet at December 31, 2009. See Note 6 for additional information relating to
these marketable equity securities.
The amortized cost basis of long-term marketable equity securities was $12.9 million and $38.1 million at December 31, 2009 and 2008,
respectively. Gross unrealized gains were $2.7 million at December 31, 2009 and gross unrealized losses were less than $0.1 million at
December 31, 2008. The unrealized gain at December 31, 2009, and the unrealized loss at December 31, 2008 are included in "Accumulated
other comprehensive income" in the accompanying consolidated balance sheet.
During 2008, the Company recorded a $6.2 million impairment charge related to the write-down of certain long-term marketable securities.
These losses were determined to be other-than-temporary due to the significant decline in and the duration of the decline in their stock prices.
These impairment charges are included in "Other income (expense)" in the accompanying consolidated statement of operations.
Equity method investments
On June 5, 2009, Match completed the sale of its European operations to Meetic, an online dating company based in France. As
consideration, Match received a 27% stake in Meetic, which is accounted for under the equity method on a one-quarter lag. The carrying value
of the investment in Meetic is $156.5 million (€106.3 million) at December 31, 2009. The fair value of the investment in Meetic, based on its
quoted market price, is $166.7 million (€115.8 million) at December 31, 2009.
On December 8, 2008, the Company sold its 30% equity stake in Jupiter Shop, a Japanese TV shopping company, for $493.3 million. The
transaction resulted in a pre-tax gain of $352.0 million, which is included in "Gain on sale of long-term investments" in the accompanying
consolidated statement of operations. The pre-tax gain included $21.5 million of foreign currency translation gains that were recognized into
earnings at the time of the sale. Additionally, in the fourth quarter of 2008, the Company recorded a $5.5 million impairment charge related to
the write-down of an equity method investment to its fair value. The decline in value was determined to be other-than-temporary due to the
equity method investee's operating losses, negative operating cash flows and the resulting need for changes to the investee's existing business
model. The resulting valuation of the investee also reflected the assessment of market conditions and the investee's ability to successfully
restructure. The
83
December 31,
2009
2008
Long
-
term marketable equity securities
15,608
38,760
Equity method investments
200,373
49,001
Cost method investments
44,314
22,096
Auction rate securities
12,635
10,725
Total long
-
term investments
272,930
120,582