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Business Combination | 3 Months Ended
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Mar. 31, 2022
Business Combinations [Abstract] |
Business Combination | Note 5 - Business Combination The Company entered into a definitive agreement to purchase all of the outstanding shares of Flashgap SAS (“Flashgap”), pursuant to a Share Purchase Agreement dated January 31, 2022 (“Purchase Agreement”), by and among Bumble, Flashgap SAS, and the company’s selling shareholders, for a purchase price of approximately $75.4 million. Flashgap (popularly known as Fruitz), is a fast growing dating app with a Gen Z focus, which is a growing segment of online dating consumers. Fruitz complements our existing Bumble and Badoo apps and will allow the Company to expand our product offerings to a dynamic Gen Z market. The acquisition of Fruitz was accounted for using the acquisition method of accounting which required that the assets acquired and liabilities assumed be recognized at their estimated fair values as of the acquisition date (based on Level 3 measurements). As detailed below, the Company entered into a contingent earn-out arrangement that was determined to be part of the purchase consideration. See Note 10, Fair Value Measurements for further discussion. The following tables summarize the purchase consideration and the purchase price allocation to estimated fair values of the identifiable assets acquired and liabilities assumed (in thousands):
Cash consideration |  | $ | 72,275 |
Fair value of contingent earn-out liability |  |  | 3,100 |
Total purchase price |  | $ | 75,375 |
Purchase price allocation |  | $ | 75,375 |
Less fair value of net assets acquired: |  |  |
Cash and cash equivalents |  |  | 2,555 |
Accounts receivable |  |  | 799 |
Other current assets |  |  | 57 |
Property and equipment |  |  | 17 |
Intangible assets |  |  | 42,930 |
Deferred revenue |  |  | (650 | )
Accounts payable |  |  | (1,045 | )
Deferred tax liabilities |  |  | (11,177 | )
Net assets acquired |  |  | 33,486 |
Goodwill |  | $ | 41,889 |
Goodwill is primarily attributable to assembled workforce, expected synergies and other factors. The fair values of the identifiable intangible assets acquired at the date of acquisition a re as follows (in thousands):
|  | Acquisition Date Fair Value |  |  | Weighted- Average Useful Life (Years) |
Brand |  | $ | 38,000 |  |  |  | 15 |
Developed technology |  |  | 4,100 |  |  |  | 4 |
User base |  |  | 830 |  |  |  | 4 |
Total identifiable intangible assets acquired |  | $ | 42,930 |  |  |  |
The fair values of the acquired brand and developed technology were determined using a relief from royalty methodology. The fair value of the user base was determined using an excess earnings methodology. The valuations of intangible assets incorporates significant unobservable inputs and require significant judgment and estimates, including the amount and timing of future cash flows. As of March 31, 2022, the Company has recognized approximately $1.1 million of transaction costs related to the acquisition. These costs are recorded in “General and administrative expense” in the condensed consolidated statements of operations.

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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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