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Goodwill
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill

11. Goodwill

 

The changes in carrying value of goodwill are as follows:

 

   2024   2023 
   As of December 31, 
   2024   2023 
Carrying value at beginning of year  $42,575   $39,344 
Goodwill acquired in acquisition of Parade   -    - 
Goodwill acquired in acquisition of Men’s Journal   -    1,246 
Goodwill acquired in acquisition of Fexy Studios   -    1,985 
Carrying value at end of year  $42,575   $42,575 

 

The Company performs an annual goodwill impairment test, or more frequently if events or changes in circumstances indicate that the carrying value of goodwill may not be recoverable. Resulting from a change in reportable segments (see Note 26) the Company reassessed its goodwill reporting unit level and determined its goodwill reporting units had changed and goodwill was assigned to the new goodwill reporting units based on the relative fair value of each reporting unit.

 

The goodwill impairment test was conducted at the reporting unit level, which now consists of four reporting units: Sports, Finance, Lifestyle, and Platform.

 

The Company bypassed the qualitative test known as Step Zero and proceeded directly to the quantitative impairment test allowable under ASC 350. The fair value of each reporting unit was estimated using a combination of the income and market approaches. The income approach utilized a discounted cash flow analysis, incorporating management’s projections of revenue growth, operating margins, and discount rates that reflect the risk-adjusted cost of capital. The market approach considered valuation multiples derived from comparable publicly traded companies.

 

Based on the results of the quantitative impairment test, the fair values of all four reporting units exceeded their respective carrying amounts. Accordingly, no goodwill impairment was recorded during the years ended December 31, 2024 and 2023, respectively.