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Acquisitions
 3 Months Ended
Mar. 31, 2022
Business Combination and Asset Acquisition [Abstract]  
Acquisitions

Note 4 – Acquisitions

 

Molotov S.A.S

 

On December 6, 2021, the Company acquired approximately 98.5% 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.

 

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.

 

During the three months ended March 31, 2022, the Company continued finalizing its purchase price allocation of the assets acquired and liabilities assumed in the December 6, 2021 acquisition of Molotov based on new information obtained about facts and circumstances that existed as of the acquisition date. During the three months ended March 31, 2022, the Company recorded preliminary measurement period adjustments to its acquisition date goodwill to record the non-controlling interest of $1.8 million for the remaining 1.5% of Molotov’s equity interest and adjustments to right of use assets, lease liabilities, accounts payable, and accrued expenses based on additional information obtained about conditions that existed as of the acquisition date. The Company expects to finalize the purchase price allocation 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   127,971 
Right-of-use assets   4,566 
Total assets acquired  $163,190 
      
Liabilities assumed:     
Accounts payable  $15,724 
Accrued expenses and other current liabilities   21,628 
Deferred revenue   812 
Long-term borrowings - current portion   3,662 
Lease liabilities   4,566 
Total liabilities assumed  $

46,392

 
      
Redeemable non-controlling interest   1,752 
Net assets acquired  $115,046 

 

 

fuboTV Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

 

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 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