GOODWILL AND OTHER INTANGIBLE ASSETS, NET

12 Months Ended

Dec. 31, 2011

GOODWILL AND OTHER INTANGIBLE ASSETS, NET [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS, NET

NOTE 7:-

GOODWILL AND OTHER INTANGIBLE ASSETS, NET

Goodwill:

Changes in goodwill as of December 31, 2011 are as follows:

	December 31,
	2011

Goodwill, beginning of year	$	-
Acquisition of Smilebox		24,753

Goodwill, end of year	$	24,753

Other intangible assets, net

Net other intangible assets consisted of the following:

	Useful		December 31,
	life		2010		2011
Original amount:
Capitalized software development costs		3	$	-	$	739
Capitalized content costs		3		413		503
Domain		3		35		52
Technology		3		-		3,000
Trade name		10.25		-		1,870
Customer relationship		4.3-6.3		-		1,488

				448		7,652
Accumulated amortization:
Capitalized software development costs				-		22
Capitalized content costs				215		329
Domain				31		39
Technology				-		333
Trade name				-		61
Customer relationship				-		262

				246		1,046
Other intangible assets, net:
Capitalized software development costs				-		717
Capitalized content costs				198		174
Domain				4		13
Technology				-		2,667
Trade name				-		1,809
Customer relationship				-		1,226

			$	202	$	6,606

Amortization expense amounted to $ 90, $ 112 and $ 800 for the years ended December 31, 2009, 2010 and 2011, respectively.

The estimated future amortization expense of other intangible assets as of December 31, 2011 is as follows:

2012	$	2,155
2013		1,809
2014		1,244
2015		303
Thereafter		1,095

	$	6,606

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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