GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

NOTE 5—GOODWILL AND INTANGIBLE ASSETS

Goodwill and intangible assets, net, are as follows:

	December 31,
	2022		2021
	(In thousands)
Goodwill	$	2,348,366	$	2,411,996
Intangible assets with indefinite lives	189,006		576,653
Intangible assets with definite lives, net	168,741		195,044
Total goodwill and intangible assets, net	$	2,706,113	$	3,183,693

The following table presents the balance of goodwill, including the changes in the carrying value of goodwill, for the years ended December 31, 2022 and 2021:

	December 31,
	2022		2021
	(In thousands)
Balance at January 1	$	2,411,996	$	1,270,532
Additions	27,086		1,243,063
Foreign Exchange Translation	(90,716)		(101,599)
Balance at December 31	$	2,348,366	$	2,411,996

On July 11, 2022, Match Group completed the acquisition of all outstanding capital stock of The League App, Inc., a dating app provider focused on career-oriented individuals. The purchase price, net of cash received, was $29.9 million, of which $25.7 million was paid in cash on the acquisition date and $4.2 million was deferred cash consideration that remains payable at December 31, 2022. The purchase price was primarily allocated to goodwill and intangible assets.

On June 17, 2021, Match Group completed the acquisition of all capital stock of Hyperconnect, Inc., a leading social discovery and video technology company based in Seoul, South Korea. The acquisition increased our presence in certain Asian markets and enhanced the real-time video capabilities of Match Group. The

accounting purchase price was $1.75 billion, which consisted of $859.9 million of cash, net of cash acquired, and 5.9 million shares of Match Group common stock at a basis of the closing market price on the acquisition date. The purchase price was allocated to goodwill of $1.2 billion that is not deductible for tax purposes; intangible assets of $612.0 million primarily consisting of trade names and associated trademarks, both of which are indefinite life intangible assets, with a related deferred tax liability of $134.7 million; and $30.4 million of other net assets. The allocation of the accounting purchase price, which is based on Level 3 inputs, is final.

During the year ended December 31, 2022, the Company recognized impairment charges of $270.1 million related to Hyperconnect indefinite- and definite-lived intangible assets related to a decline in long-term projections for the business since the acquisition in June 2021, including adverse foreign currency impacts in certain of Hyperconnect’s key markets, and the use of higher discount rates to value the assets. Additionally, the Company recognized $49.4 million of impairment during the year ended December 31, 2022 related to certain trade names including the Meetic and Match brands in Europe and certain affinity brands in the U.S., primarily due to declining projections at such brands. These charges are included within impairment and amortization of intangibles in the consolidated statement of operations.

Intangible assets with indefinite lives are trade names and trademarks acquired in various acquisitions. At December 31, 2022 and 2021, intangible assets with definite lives are as follows:

	December 31, 2022
	Gross Carrying Amount		Accumulated Amortization		Net		Weighted-Average Useful Life  (Years)
	(In thousands)
Customer lists	$	123,531	$	(41,866)	$	81,665	4.9
Patent and technology	66,754		(33,778)		32,976		4.5
Trade names	56,594		(2,503)		54,091		3.3
Other	22		(13)		9		2.0
Total	$	246,901	$	(78,160)	$	168,741	4.3

	December 31, 2021
	Gross Carrying Amount		Accumulated Amortization		Net		Weighted-Average Useful Life  (Years)
	(In thousands)
Customer lists	$	129,427	$	(15,487)	$	113,940	4.9
Patent and technology	99,512		(18,657)		80,855		4.2
Trade names	1,354		(1,193)		161		1.3
Other	425		(337)		88		2.7
Total	$	230,718	$	(35,674)	$	195,044	4.6

At December 31, 2022, amortization of intangible assets with definite lives is estimated to be as follows:

	(In thousands)
2023	$	45,635
2024	42,925
2025	36,276
2026	18,322
2027 and thereafter	25,583
Total	$	168,741