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Intangible Assets and Goodwill (Tables)

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets and Goodwill

The table below summarizes the Company’s intangible assets at June 30, 2022 and December 31, 2021 (in thousands):

			Useful Life (Years)						Weighted Average Remaining Life (Years)						June 30, 2022
															Intangible Assets						Accumulated Amortization						Net Balance
Customer relationships			2						1.2						$	32,280					$	(26,187)					$	6,093
Trade names			2 - 9						6.7						38,826						(9,733)						29,093
Software and technology			3 - 9						6.4						197,174						(47,193)						149,981
Gaming licenses and market access fees			2 - 5						4.1						15,701						(2,184)						13,517
Total															$	283,981					$	(85,297)					$	198,684

			Useful Lives (Years)						Weighted Average Remaining Life (Years)						December 31, 2021
															Intangible Assets						Accumulated Amortization						Net Balance
Customer relationships			2						2.2						$	32,965					$	(21,105)					$	11,860
Trade names			2 - 9						7.2						38,876						(7,455)						31,421
Software and technology			3 - 9						8.7						195,852						(35,572)						160,280
Gaming licenses and market access fees			2 - 5						4.8						14,951						$	(326)					$	14,625
Total															$	282,644					$	(64,458)					$	218,186

Finite-lived Intangible Assets Amortization Expense

The estimated future amortization expense associated with intangible assets, net is as follows (in thousands):

Year ended December 31,			Future Amortization
2022			$	23,859
2023			33,919
2024			30,522
2025			27,731
2026			27,259
Thereafter			55,394
Total			$	198,684

Schedule of Goodwill

The following table is a summary of the changes to goodwill for the six months ended June 30, 2022 (in thousands):

			Streaming						Wagering						Total
Balance - December 31, 2021			$	619,587					$	10,682					$	630,269
Molotov purchase accounting adjustment			(497)						—						(497)
Impairment			—						(10,682)						$	(10,682)
Foreign currency translation adjustment			(2,813)						—						$	(2,813)
Balance - June 30, 2022			$	616,277					$	—					$	616,277

Fair Value Measurement Inputs and Valuation Techniques

The income-based approach also takes into account the future growth and profitability expectations. Significant inputs into the valuation models included the control premium, discount rate, and revenue market multiples as follows:

			Streaming						Wagering
Control premium			30.0%						30.0%
Discount rate			27.0%						19.5%
Revenue multiples			0.4x to 0.7x						0.4x to 0.7x

X

- Definition

Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis.

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Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

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