SEC Filings - Day Three Homework Review by Michelle Leder
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Transcript of SEC Filings - Day Three Homework Review by Michelle Leder
Homework review: Google & Yahoo! • Both companies made big purchases during the past quarter: Google bought
Waze; Yahoo bought Tumblr."• The purchase price for each was just around $1 billion (Yahoo spent $990
million on Tumblr, Google spent $966 million on Waze)"• In terms of accounting for those acquisitions, both companies took large chunks
of those purchase prices as goodwill, an accounting placeholder. For Yahoo, it was $751 milion in goodwill; for Google it was $847 million."
• There were also big placeholders for intangible assets in both acquisitions: $262 million at Yahoo and $188 million at Google."
• Yahoo assigned an amazing $182 million valuation to Tumblr's "customer relationships.”"
• Similar acquisitions like this have often resulted in big write-downs months or sometimes years after the fact."