Search engine company Yahoo (YHOO)
has announced plans to acquire Internet tools company NetControls
in a $1.4 million stock deal.
According to a recent filing with the Securities and Exchange Commission, Yahoo
entered into a stock purchase agreement on July 31 to acquire all 24,778 outstanding shares of
common stock. Based on the stock's closing price of 56-1/2 on July 31,
the deal is valued at about $1.4 million.
The acquisition will be recorded as a purchase for accounting purposes and
the majority of the purchase price will be amortized over the estimated
useful life of the technology acquired. Yahoo could not be reached for an estimate of how long that may be.
The companies have worked as partners to develop the Yahoo NewsTicker, which delivers news headlines, stock quotes, sports scores, and weather reports to users' desktops.