Investments in Other Equity Securities

12 Months Ended

Dec. 31, 2019

Investments, All Other Investments [Abstract]

Cost-method Investments

INVESTMENTS IN EQUITY SECURITIES

Unconsolidated Variable Interest Entities (“VIE”)

From time to time, the Company may enter into investments in entities that are considered variable interest entities under Accounting Standards Codification (ASC) Topic 810. If the Company is a primary beneficiary of a variable interest entity (“VIE”), it is required to consolidate the entity. To determine if the Company is the primary beneficiary of a VIE, the Company evaluates whether it has (1) the power to direct the activities that most significantly impact the VIE’s economic performance, and (2) the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. The assessment of whether the Company is the primary beneficiary of its VIE requires significant assumptions and judgments.

EDC

In 2014, the Company acquired an 18.4% interest in Encoding.com, Inc. (“EDC”), a privately held video transcoding service company headquartered in San Francisco, California, for $3.5 million by purchasing EDC’s Series B preferred stock. EDC is considered a VIE but the Company determined that it is not the primary beneficiary of EDC. As a result, EDC is measured at its cost minus impairment, if any. The Company determined that there were no indicators at December 31, 2019 and 2018 that EDC investment was impaired. The Company’s maximum exposure to loss from the EDC’s investment at December 31, 2019 and 2018, was limited to its investment cost of $3.6 million, including $0.1 million of transaction costs.