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IAC/INTERACTIVECORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Acquisition of Twoo
On January 4, 2013, Meetic S.A., a Match subsidiary, purchased all the outstanding shares of Massive Media NV, which operates Twoo, a
social discovery website that allows its users to meet new people. The purchase price was $25.0 million in cash, plus potential additional
consideration of up to €83.2 million (or $113.8 million using the December 31, 2013 exchange rate) that is contingent upon a combination of
date was $40.8 million
. See Note 9 for additional information related to the fair value measurement of the contingent consideration arrangement.
Acquisition of About, Inc.
On September 24, 2012, IAC completed its purchase of all the outstanding shares of About, Inc. (“The About Group”), an online content
and reference library offering expert, quality content across 90,000 topics. The purchase price was $300 million in cash, plus an amount equal to
the net working capital of $17.1 million at closing. The financial results of The About Group are included in IAC's consolidated financial
statements, within the Search & Applications segment, beginning October 1, 2012.
The unaudited pro forma financial information in the table below summarizes the combined results of IAC and The About Group as if the
acquisition of The About Group had occurred on January 1, 2012. The pro forma financial information includes adjustments required under the
acquisition method of accounting and is presented for informational purposes only and is not necessarily indicative of what the results would
have been had the acquisition occurred on January 1, 2012. For the year ended December 31, 2012 , pro forma adjustments reflected below
include an increase of $13.4 million in amortization of intangible assets.
NOTE 6—GOODWILL AND INTANGIBLE ASSETS
The Company assesses goodwill and indefinite-lived intangible assets for impairment annually or more frequently if an event occurs or
circumstances change that would more likely than not reduce the fair value of a reporting unit or the fair value of an indefinite-lived intangible
asset below its carrying value. The Company also reviews definite-lived intangible assets for impairment whenever events or changes in
circumstances indicate that the carrying value of a definite-lived intangible asset may not be recoverable. The Company performs its annual
assessment for impairment of goodwill and indefinite-lived intangible assets as of October 1 in connection with the preparation of its annual
financial statements. See Note 2 for further discussion of the Company's impairment assessment process for goodwill and intangible assets.
The balance of goodwill and intangible assets, net is as follows:
62
Year Ended December 31, 2012
(In thousands, except per share data)
Revenue
$
2,875,903
Net earnings attributable to IAC shareholders
166,869
Basic earnings per share attributable to IAC shareholders
1.93
Diluted earnings per share attributable to IAC shareholders
1.79
December 31,
2013
2012
(In thousands)
Goodwill
$
1,675,323
$
1,616,154
Intangible assets with indefinite lives
376,329
378,964
Intangible assets with definite lives, net
69,007
103,940
Total goodwill and intangible assets, net
$
2,120,659
$
2,099,058