Twenty-First Century Fox 2013 Annual Report Download - page 103

TWENTY-FIRST CENTURY FOX, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
contingent consideration. EMM is a media company that holds the collective media and sponsorship rights of the
Dutch Premier League. The remaining 49% of EMM, which is owned by the Dutch Premier League and the
global TV production company Endemol, has been recorded at its acquisition date fair value. In accordance with
ASC 350, the excess purchase price, based on a valuation of 100% of EMM, of approximately $670 million has
been preliminarily allocated as follows: $325 million to amortizable intangible assets, primarily customer
relationships, with useful lives ranging from 6 to 20 years, and approximately $345 million representing the
goodwill on the transaction.
Fox Sports Asia (formerly ESPN Star Sports)
In November 2012, the Company acquired the remaining 50% interest in ESPN STAR Sports, now
operating as Fox Sports Asia, that it did not already own for approximately $220 million, net of cash
acquired. Fox Sports Asia is a leading sports broadcaster in Asia and the Company now, through its wholly
owned subsidiaries, owns 100% of Fox Sports Asia. The carrying amount of the Company’s previously held
equity interest in Fox Sports Asia was revalued to fair value as of the acquisition date, resulting in a non-taxable
gain of approximately $174 million which was included in Other, net in the consolidated statements of operations
for the fiscal year ended June 30, 2013. In accordance with ASC 350, the aggregate excess purchase price,
including the revalued previously held investment, of approximately $870 million has been preliminarily
allocated as follows: $190 million to amortizable intangible assets, primarily MSO agreements, with useful lives
ranging from 8 to 15 years and approximately $680 million representing the goodwill on the transaction.
SportsTime Ohio
In December 2012, the Company acquired SportsTime Ohio, a Regional Sports Network (“RSN”) serving
the Cleveland, Ohio market, for an estimated total purchase price, including post-closing costs, of approximately
$285 million, of which $135 million was in cash. The balance of the purchase price represents the fair value of
deferred payments and payments that are contingent upon achievement of certain performance objectives. In
accordance with ASC 350, the excess purchase price of approximately $275 million has been preliminarily
allocated as follows: $135 million to amortizable intangible assets, primarily MSO agreements, with useful lives
ranging from 8 to 20 years and approximately $140 million representing the goodwill on the transaction.
Sky Deutschland
During the third quarter of fiscal 2013, the Company obtained the power to control Sky Deutschland AG
(“Sky Deutschland”) through the acquisition of an additional 5% ownership interest that increased the
Company’s ownership interest to 55%. The remaining 45% noncontrolling interests in Sky Deutschland have
been recorded at its fair value of approximately $2.4 billion, based on the closing price of its shares on the
Frankfurt Stock Exchange on the date majority control was acquired (a Level 1 measurement as defined in Note
8 – Fair Value). The carrying amount of the Company’s previously held equity interest in Sky Deutschland was
revalued to fair value as of the acquisition date, resulting in a gain of approximately $2.1 billion which was
included in Other, net in the consolidated statements of operations for the fiscal year ended June 30, 2013. In
accordance with ASC 350, the aggregate excess purchase price, including the revalued previously held
investment, of $5.6 billion has been preliminarily allocated to goodwill and is not being amortized. The results of
Sky Deutschland are included in the Company’s consolidated results of operations beginning in January 2013.
(See Note 7—Investments)
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