Table of Contents 

INFOSPACE, INC. 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 

Years Ended December 31, 2001, 2000 and 1999 

On the dates of the First Issuance and Second Issuance, the price of Go2Net's Series A Convertible Preferred Stock was at a discount to 

the price of the common stock into which the preferred stock was then convertible. The common stock price on March 12, 1999 was $23.901 

and on June 17, 1999 was $32.8296. The discount of $159,930,733 was recognized as a dividend to Vulcan.  

Note 7:  Business Combinations and Asset Acquisitions 

Fiscal Year 2001 

GiantBear, Inc 

:    On December 19, 2001, the Company acquired certain assets of GiantBear, Inc. (GiantBear) a wireless technology and 

service provider that enables wireless carriers to offer their subscribers access to content, data and mobile commerce through wireless devices, 

delivery channels and applications, for purchase consideration of $6.0 million plus acquisition expenses of $21,000. The acquisition was 

accounted for as a purchase.  

The purchase price was allocated to the assets and liabilities assumed based on their estimated fair values as follows:  

(in thousands) 

Tangible assets acquired 

$ 

1,098   

Liabilities assumed 

(151 ) 

Net book value of net assets acquired 

947   

Fair value adjustments: 

Purchased technology 

1,900   

Customer list 

700   

Fair value of net assets acquired 

$ 

3,547   

Purchase price: 

Cash consideration 

$ 

6,000   

Acquisition costs 

21   

Less fair value of net assets acquired 

(3,547 ) 

Excess of purchase price over net assets acquired, allocated to goodwill 

$ 

2,474   

The expected life of the core technology was assumed to be five years, after which substantial modification and enhancement would be 

required for the technology to remain competitive. The expected life of the customer list was also assumed to be five years, which is consistent 

with the expected cash flows from the customer contracts. The Company is amortizing the core technology and customer list over an estimated 

life of five years. In accordance with SFAS No. 142, no amortization of the goodwill will be recorded, as it has an indefinite life. The goodwill 

will be tested for impairment annually, with the Company's other indefinite life intangibles.  

As of the date of the acquisition, the technology acquired from GiantBear was substantially complete and no material alterations or 

enhancements were under development. The core of GiantBear's services revolved around its BearWare platform. The BearWare infrastructure 

platform provides the engine that allows users to migrate from one or more delivery vehicles (e.g. SMS, WAP, Audio) to others over time (e.g. 

3G). There are six primary technologies that made up the GiantBear suite of services: InfoAlert, one way SMS push, BearTracks, a 

configurable book marking capability; AudioCub, which delivers customized audio content on request to any analog or digital phone; Presto, a 

turnkey SMS solution for Tier 2 and Tier 3 wireless carriers; Mobile Originated Short Message Services, a 2 way SMS pull delivery vehicle; 

and BearCub, which enables any digital phone to access Internet content.  

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