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Acquisitions | 12 Months Ended
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Dec. 31, 2021
Business Combination and Asset Acquisition [Abstract] |
Acquisitions | Note 4 - Acquisitions FuboTV Merger On April 1, 2020, we completed the Merger, as described in Note 1. In accordance with the terms of the Merger Agreement, all of the capital stock of fuboTV Pre-Merger was converted, at a stock exchange ratio of 1.82, into the right to receive 32,324,362 shares of Series AA Convertible Preferred Stock, a newly-created class of our Preferred Stock. Pursuant to the Series AA Certificate of Designation, each share of Series AA Convertible Preferred Stock is convertible into two shares of the Company’s common stock only in connection with the sale of such shares on an arms’-length basis either pursuant to an exemption from registration under Rule 144 promulgated under the Securities Act or pursuant to an effective registration statement under the Securities Act. In addition, each outstanding option to purchase shares of common stock of fuboTV Pre-Merger was assumed by FaceBank Pre-Merger and converted into options to acquire FaceBank Pre-Merger’s common stock at a stock exchange ratio of 3.64. In accordance with the terms of the Merger Agreement, the Company assumed 8,051,098 stock options issued and outstanding under the fuboTV Pre-Merger’s 2015 Equity Incentive Plan (the “2015 Plan”) with a weighted-average exercise price of $1.32 per share. From and after the Effective Time, such options may be exercised for shares of the Company’s common stock under the terms of the 2015 Plan. The purchase price for the merger was determined to be $576.1 million, which consists of (i) $530.1 million market value ($8.20 per share stock price of the Company as of April 1, 2020) of 64.6 million common shares (on an as-converted basis), (ii) $36.0 million related to the fair value of outstanding options vested prior to the Merger and (iii) $10.0 million related to the effective settlement of a preexisting loan receivable from fuboTV Pre-Merger. No gain or loss was recognized on the settlement as the loan was effectively settled at the recorded amount. Transaction costs of $0.9 million were expensed as incurred. The Company accounted for the Merger as a business combination under the acquisition method of accounting. FaceBank Pre-Merger was determined to be the accounting acquirer based upon the terms of the Merger Agreement and other factors including: (i) FaceBank Pre-Merger’s stockholders owned approximately 57% of the voting common shares of the combined company immediately following the closing of the Merger (54% assuming the exercise of all vested stock options as of the closing of the transaction) and (ii) directors appointed by FaceBank Pre-Merger would hold a majority of board seats in the combined company. The following table presents the allocation of the purchase price to the net assets acquired, inclusive of intangible assets, with the excess fair value recorded to goodwill. The goodwill, which is not deductible for tax purposes, is attributable to the assembled workforce of fuboTV Pre-Merger, planned growth in new markets, and synergies expected to be achieved from the combined operations of FaceBank Pre-Merger and fuboTV Pre-Merger. The goodwill established was included within the streaming reporting unit. Schedule of Assets Acquired and Liabilities Assumed
|  | Fair Value |
Assets acquired: |  |  |  |
Cash and cash equivalents |  | $ | 8,040 |
Accounts receivable |  |  | 5,831 |
Prepaid expenses and other current assets |  |  | 976 |
Property and equipment, net |  |  | 2,042 |
Restricted cash |  |  | 1,333 |
Other noncurrent assets |  |  | 397 |
Operating leases - right-of-use assets |  |  | 5,395 |
Intangible assets |  |  | 243,612 |
Deferred tax asset |  |  | 15,527 |
Goodwill |  |  | 478,406 |
Total assets acquired |  |  | 761,559 |
Liabilities assumed: |  |  |  |
Accounts payable |  | $ | 66,498 |
Deferred income taxes |  |  |  |
Accrued expenses and other current liabilities |  |  | 80,996 |
Long-term borrowings - current portion |  |  | 5,625 |
Operating lease liabilities |  |  | 5,395 |
Deferred revenue |  |  | 8,809 |
Long-term debt, net of issuance costs |  |  | 18,125 |
Total liabilities assumed |  | $ | 185,448 |
Net assets acquired |  | $ | 576,111 |
The fair values of the intangible assets acquired were determined using the income and cost approaches. The fair value measurements were primarily based on significant inputs that are not observable in the market and thus represent Level 3 measurements as defined in ASC 820. The relief from royalty method was used to value the software and technology and tradenames. The relief from royalty method is an application of the income method and estimates fair value for an asset based on the expected cost to license a similar asset from a third-party. Projected cash flows are discounted at a required rate of return that reflects the relative risk of achieving the cash flow and the time value of money. The cost approach, which estimates value by determining the current cost of replacing an asset with another of equivalent economic utility, was used for customer relationships. The cost to replace a given asset reflects the estimated reproduction or replacement cost for these customer related assets. The estimated useful lives and fair value of the intangible assets acquired are as follows (in thousands): Schedule of Estimated Useful Lives and Fair Value of the Intangible Assets Acquired
|  | Estimated Useful Life (in Years) |  |  | Fair Value |
Software and technology |  | 9 |  |  | $ | 181,737 |
Customer relationships |  | 2 |  |  |  | 23,678 |
Tradenames |  | 9 |  |  |  | 38,197 |
Total |  |  |  |  | $ | 243,612 |
The deferred tax assets represent the deferred tax impact associated with the differences in book and tax basis, including incremental differences created from the purchase price allocation and acquired net operating losses. Deferred taxes associated with estimated fair value adjustments reflect an estimated blended federal and state tax rate, net of tax effects on state valuation allowances. For balance sheet purposes, where U.S. tax rates were used, rates were based on recently enacted U.S. tax law. The effective tax rate of the combined company could be significantly different (either higher or lower) depending on post-merger activities, including cash needs, the geographical mix of income, and changes in tax law. Vigtory On February 26, 2021, the Company consummated the acquisition of Vigtory, Inc., (“Vigtory”) a sports betting and interactive gaming company, as a result of the merger of fuboBet Inc., a wholly-owned subsidiary of the Company, into Vigtory, whereby Vigtory continued as the surviving corporation (the “Vigtory Acquisition”) and its name was changed to Fubo Gaming Inc. The purchase price of the Vigtory Acquisition was determined to be $10.3 million, including $1.7 million of Vigtory’s outstanding convertible notes and other liabilities settled by the Company on the closing date. The Vigtory Acquisition consideration does not include $26.9 million fair value of common shares issued to former employee shareholders of Vigtory subject to vesting over future service periods. The Company accounted for the Vigtory Acquisition as a business combination under the acquisition method of accounting. As such, the purchase price was allocated to the net assets acquired with any excess recorded to goodwill. The net assets and liabilities assumed were immaterial and substantially all of the consideration was allocated to goodwill. Goodwill, which is not deductible for tax purposes, primarily represents the benefits expected to result from the assembled workforce of Vigtory. The Company allocated goodwill to its online wagering segment. The results of the Vigtory Acquisition are included in the Company’s operations from February 26, 2021 in the online wagering segment. The Company recognized $0.4 million of acquisition-related costs for the Vigtory Acquisition that were expensed as incurred during the year ended December 31, 2021. These costs are included in general and administrative expense in the consolidated statement of operations and comprehensive loss. Edisn Inc. On December 1, 2021, the Company acquired 100% of Edisn Inc. (“Edisn”), an AI-powered computer vision platform with patent-pending video recognition technologies based in Bangalore, India, for approximately $14.4 million (“Edisn Acquisition”). The consideration paid was cash of $6.1 million and 464,700 shares of the Company’s common stock with a fair value of $8.3 million as of the date of closing. The Company accounted for the Edisn Acquisition as a business combination under the acquisition method of accounting. As such, the purchase price was allocated to the net assets acquired with any excess recorded to goodwill as follows (in thousands): Schedule of Assets Acquired and Liabilities Assumed
Assets acquired: |  |  |  |
Cash |  | $ | 373 |
Prepaid and other current assets |  |  | 5 |
Property and equipment, net |  |  | 10 |
Intangible assets |  |  | 1,500 |
Goodwill |  |  | 12,501 |
Total assets acquired |  | $ | 14,389 |
Liabilities assumed: |  |  |  |
Deferred income taxes |  |  | 12 |
Accrued expenses and other current liabilities |  |  | 25 |
Total liabilities assumed |  | $ | 37 |
Net assets acquired |  | $ | 14,352 |
Goodwill, which is not deductible for tax purposes, primarily represents the benefits expected to result from the assembled workforce of Edisn. The Company allocated the goodwill to its streaming segment. The Company recognized $0.7 million of acquisition-related costs for the Edisn Acquisition that were expensed as incurred during the year ended December 31, 2021. These costs are included in general and administrative expense in the consolidated statement of operations and comprehensive loss. The estimated useful lives and fair value of the intangible assets acquired are as follows: Schedule of Estimated Useful Lives and Fair Value of the Intangible Assets Acquired
|  | Estimated Useful Life (in Years) |  |  | Fair Value |
Software and technology |  | 7 |  |  | $ | 1,500 |
Total |  |  |  |  | $ | 1,500 |
Molotov S.A.S On December 6, 2021, the Company acquired approximately 99% of the equity interests in Molotov S.A.S (“Molotov”), a television streaming platform located in France, for €101.7 million or $115.0 million (“Molotov Acquisition”). The consideration paid in cash totaled €14.4 million or $16.3 million, and the issuance of 5.7 million shares of the Company’s common stock with a fair value of approximately $98.8 million. Molotov is included in the streaming segment and its contribution to revenue and operating loss during the year ended December 31, 2021 was $1.4 million and $8.1 million, respectively. The Molotov Acquisition was accounted for using the acquisition method of accounting in accordance with ASC 805, which requires recognition of assets acquired and liabilities assumed at their respective fair values on the date of acquisition. As of December 31, 2021, the Company has completed a preliminary allocation of the purchase consideration. The Company is gathering information to assess the completeness and accuracy of certain liabilities and related accounts, and therefore the allocation of the purchase price cannot be finalized as of December 31, 2021. The Company expects to finalize the valuation of these assets and liabilities, and consideration transferred, as soon as practicable. Any changes to the preliminary estimates of the fair value of the assets acquired and liabilities assumed will be recorded as adjustments to those assets and liabilities and residual amounts will be allocated to goodwill. Any necessary adjustments will be finalized within one year from the date of acquisition (in thousands): Schedule of Assets Acquired and Liabilities Assumed
Assets acquired: |  |  |  |
Cash |  | $ | 818 |
Accounts receivable, net |  |  | 1,752 |
Prepaid and other current assets |  |  | 6,273 |
Property and equipment, net |  |  | 738 |
Other non-current assets |  |  | 2,643 |
Intangible assets |  |  | 18,429 |
Goodwill |  |  | 128,468 |
Total assets acquired |  | $ | 159,121 |
Liabilities assumed: |  |  |  |
Accounts payable |  | $ | 15,724 |
Accrued expenses and other current liabilities |  |  | 23,877 |
Deferred revenue |  |  | 812 |
Long-term borrowings - current portion |  |  | 3,662 |
Total liabilities assumed |  | $ | 44,075 |
Net assets acquired |  | $ | 115,046 |
Goodwill, which is not deductible for tax purposes, primarily represents the benefits expected to result from the assembled workforce of Molotov. The Company allocated the goodwill to its streaming segment. The Company recognized $2.7 million of acquisition-related costs for the Molotov Acquisition that were expensed as incurred during the year ended December 31, 2021. These costs are included in general and administrative expense in the consolidated statement of operations and comprehensive loss. The preliminary estimated useful lives and fair value of the intangible assets acquired are as follows: Schedule of Estimated Useful Lives and Fair Value of the Intangible Assets Acquired
|  | Estimated Useful Life (in Years) |  |  | Fair Value |
Customer relationships |  | 2 |  |  | $ | 9,271 |
Tradenames |  | 2 |  |  |  | 679 |
Software and technology |  | 6 |  |  |  | 8,479 |
Total |  |  |  |  | $ | 18,429 |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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