Business Combinations (Tables)

12 Months Ended

Dec. 31, 2019

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the final allocation of the total consideration to the estimated fair values of the assets acquired and liabilities assumed as of January 18, 2019 (in thousands):

Consideration, at estimated fair value:
Cash	$	1,000
Contingent consideration	11,600
RealNetworks' preexisting 42% equity interest in Napster	2,700
Effective settlement of Napster debt and warrants, held by RealNetworks	6,408
Total consideration	$	21,708
Assets acquired and liabilities assumed, at estimated fair value:
Cash and cash equivalents	$	10,127
Accounts receivable	20,915
Prepaid expenses and other current assets	2,421
Restricted cash	2,322
Equipment, software and leasehold improvements	474
Operating lease assets	2,400
Other long-term assets	77
Deferred tax assets, net	5,932
Intangible assets	23,700
Goodwill	45,520
Total assets acquired	113,888
Accounts payable	786
Accrued royalties and fulfillment	59,036
Accrued and other current liabilities	7,032
Deferred revenue, current portion	3,526
Notes payable	12,211
Deferred tax liabilities, net	6,208
Long-term lease liabilities	1,190
Other long-term liabilities	1,621
Total liabilities assumed	91,610
Total net assets acquired	22,278
Noncontrolling interests	570
Net assets acquired	$	21,708

Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination

Acquired intangible assets have a total weighted average useful life of approximately 8 years, are being amortized using the straight line method, and are comprised of the following (in thousands):

Intangible category	Estimated fair value		Method used to calculate fair value	Estimated remaining useful life
Trade name and trademarks	$	6,800	Relief-from-royalty	15 years
Developed technology	5,900		Excess earnings	4 years
Customer relationships	5,900		Cost-to-replace	3 years
Partner relationships	5,100		Distributor method	8 years
Total	$	23,700

Business Acquisition, Pro Forma Information

The following table provides the supplemental pro forma revenue and net results of the combined entity had the acquisition date of Napster been the first day of our first quarter of 2018 rather than during our first quarter of 2019 (in thousands):

	Year Ended - Pro Forma (Unaudited) December 31,
	2019		2018
Net revenue	$	178,732	$	214,687
Net income (loss) attributable to RealNetworks (1)	(29,152)		(9,422)

(1) The pro forma net earnings attributable to RealNetworks for the year ended December 31, 2018 include the acquisition related gain of $12.3 million and $1.5 million of transaction costs.