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ACQUISITIONS | 9 Months Ended
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Dec. 31, 2023
Business Combination and Asset Acquisition [Abstract] |
ACQUISITIONS | ACQUISITIONS Zynga Acquisition On May 23, 2022, we completed the Zynga Acquisition. Under the terms and conditions of the merger agreement, each Zynga stockholder received $3.50 in cash and 0.0406 shares of our common stock and cash in lieu of fractional shares for each share of Zynga common stock outstanding at closing. Our consideration consisted of an aggregate of $3,992.4 in cash, 46.3 shares of our common stock, and $151.7 of replacement equity awards attributable to the pre-acquisition service period. In connection with the transaction, on April 14, 2022, we completed our offering and sale of $2,700.0 aggregate principal amount of our Senior Notes (refer to Note 9 - Debt). The cash portion of the merger consideration was funded from our cash on hand, including the proceeds from our senior notes offering. We acquired Zynga as part of our ongoing strategy to expand selectively our portfolio of owned intellectual property and to diversify and strengthen further our mobile offerings. The acquisition-date fair value of the consideration totaled $9,521.8, which consisted of the following:
| Fair value of purchase consideration
Cash | $ | 3,992.4 |
Common stock (46.3 shares) | 5,377.7 |
Replacement equity awards | 151.7 |
Total | $ | 9,521.8 |
We used the acquisition method of accounting and recognized assets acquired and liabilities assumed at their fair value as of the date of acquisition, with the excess recorded to goodwill. The following table summarizes the acquisition date fair value of net tangible and intangible assets acquired, net of liabilities assumed from Zynga:
| Fair Value | Weighted average useful life
Cash acquired | $ | 864.9 |  | N/A
Accounts receivable | 271.2 |  | N/A
Prepaid expenses and other | 194.4 |  | N/A
Fixed assets | 54.3 |  | N/A
Right-of-use assets | 92.7 |  | N/A
Other tangible assets | 67.1 |  | N/A
Accounts payable | (78.5) |  | N/A
Accrued expenses and other current liabilities | (352.8) |  | N/A
Deferred revenue | (333.1) |  | N/A
Lease liabilities | (15.7) |  | N/A
Long-term debt | (1,653.1) |  | N/A
Non-current lease liabilities | (131.6) |  | N/A
Deferred tax liabilities, net | (922.9) |  | N/A
Other liabilities assumed | (61.5) |  | N/A
Intangible Assets |  |
Developed game technology | 4,440.0 |  | 7
Branding and trade names | 384.0 |  | 12
Game engine technology | 261.0 |  | 4
User base | 316.0 |  | 1
Developer relationships | 57.0 |  | 4
Advertising technology | 43.0 |  | 3
Customer relationships | 31.0 |  | 5
Goodwill | 5,994.4 |  | N/A
Total | $ | 9,521.8 |  |
Popcore Acquisition On November 16, 2022, we completed the acquisition of 100% of Popcore, a privately-held Germany-based free-to-play mobile game developer, for initial consideration of $116.9 in cash, 0.6 shares of our common stock, and a contingent earn-out consideration arrangement that requires us to pay up to an aggregate of $105.0 in cash if Popcore achieves certain performance measures over each of the three calendar years following the closing. The cash portion was funded from our cash on hand. We acquired Popcore as part of our ongoing strategy to expand selectively our portfolio of owned intellectual property and to diversify and strengthen further our mobile offerings. The acquisition-date fair value of the consideration totaled $198.0, which consisted of the following:
| Fair value of purchase consideration
Cash | $ | 116.9 |
Common stock (0.6 shares) | 57.8 |
Contingent earn-out | 23.3 |
Total | $ | 198.0 |
The fair value of the contingent earn-out consideration arrangement at the acquisition date was $23.3. We estimated the fair value of the contingent earn-out consideration using a Monte Carlo simulation model. This fair value measurement is based on significant inputs not observable in the market and thus represents a Level 3 measurement as defined in ASC 820. (Refer to Note 4 - Fair Value Measurements). We used the acquisition method of accounting and recognized assets and liabilities at their fair value as of the date of acquisition, with the excess recorded to goodwill. The following table summarizes the acquisition date fair value of net tangible and intangible assets acquired, net of liabilities assumed from Popcore:
| Fair Value | Weighted average useful life
Cash acquired | $ | 37.1 |  | N/A
Other tangible assets | 22.4 |  | N/A
Other liabilities assumed | (81.2) |  | N/A
Intangible Assets |  |
Developed game technology | 113.0 |  | 5
Game engine technology | 27.7 |  | 7
Branding and trade names | 3.4 |  | 4
Goodwill | 75.6 |  | N/A
Total | $ | 198.0 |  |
Goodwill, which is not deductible for tax purposes, is primarily attributable to the assembled workforce of the acquired business and expected synergies at the time of the acquisition.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 805 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479907/805-20-50-5 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 805 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//805/tableOfContent + Details
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