Pandora 2016 Annual Report Download - page 96

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As of December 31, 2014
Fair€Value€Measurement€Using
Quoted€Prices€in
Active€Markets
for€Identical
Instruments (Level€1)
Significant Other
Observable
Inputs
(Level€2) Total
(in€thousands)
Assets
Money market funds $89,113 $—$89,113
Commercial paper — 54,792 54,792
Corporate debt securities — 234,697 234,697
U.S. government and government agency debt
securities — 7,742 7,742
Total assets measured at fair value $89,113 $297,231 $386,344
As of December 31, 2015
Fair€Value€Measurement€Using
Quoted€Prices€in
Active€Markets
for€Identical
Instruments (Level€1)
Significant Other
Observable
Inputs
(Level€2) Total
(in€thousands)
Assets
Money market funds $180,021 $—$180,021
Commercial paper — 35,881 35,881
Corporate debt securities — 79,421 79,421
U.S. government and government agency debt
securities — 17,196 17,196
Total assets measured at fair value $180,021 $132,498 $312,519
€
Our money market funds are classified as Level 1 within the fair value hierarchy because they are valued primarily using
quoted market prices. Our other cash equivalents and investments are classified as Level 2 within the fair value hierarchy
because they are valued using professional pricing sources for identical or comparable instruments, rather than direct
observations of quoted prices in active markets. As of December€31, 2014 and 2015, we held no Level 3 assets or liabilities.
Table of Contents
Pandora Media,€Inc.
Notes to Consolidated Financial Statements - Continued
85
5.€€€€€€€€€€€€€€€€€€€€€€ Business Combinations
Ticketfly
On October 31, 2015, we completed the acquisition of Ticketfly, a leading live events technology company that provides
ticketing and marketing software and services for venues and event promoters across North America, for an aggregate purchase
price of $335.3 million of common stock and cash, including 11,193,847 shares of the Company’s common stock and
approximately $191.5 million in cash paid by the Company. In addition to the purchase price, unvested options and unvested
RSUs of Ticketfly held by Ticketfly employees were converted into unvested options to acquire our common stock and our
unvested RSUs.
Upon acquisition, Ticketfly became a wholly owned subsidiary of Pandora. The acquisition was accounted for as a
business combination, and the financial results of Ticketfly are included in our consolidated financial statements from the date
of acquisition.
The following table summarizes the components of the purchase consideration transferred based on the closing price
of€$12.18€per share of our common stock as of the acquisition date: