Acquisitions (Tables)

9 Months Ended

Sep. 30, 2020

Summary of Unaudited Pro Forma Financial Information

The unaudited pro forma financial information as presented below is for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of 2019.

	Three Months Ended September 30,					Nine Months Ended September 30,
	2020			2019		2020			2019
Total revenue	$	640,940		$	473,668	$	1,804,314		$	1,149,309
Net income (loss)		(12,557	)		196,138		(284,425	)		(157,400	)
Basic net income (loss) per share		(0.01	)		0.19		(0.27	)		(0.15	)
Diluted net income (loss) per share		(0.01	)		0.18		(0.27	)		(0.15	)

Peak [Member]

Schedule of Acquisition Price Allocation

The following table summarizes the acquisition date fair value of the assets, including intangible assets, liabilities assumed and related goodwill acquired from Peak (in thousands):

	Estimated Purchase Price Allocation
Cash	$	10,799
Accounts receivable		64,268
Prepaid expenses		1,748
Other current assets		12,646
Intangible assets, net:
Developed technology, useful life of 5 years		495,000
Trade names, useful life of 7 years		115,000
Domain names, weighted average useful life of 14 years		4,551
Goodwill		1,513,207
Property and equipment		6,791
Right-of-use assets		9,697
Other non-current assets		492
Total assets acquired		2,234,199
Accounts payable		(14,167	)
Operating lease liabilities		(2,205	)
Other current liabilities		(16,703	)
Deferred tax liabilities, net		(108,357	)
Non-current operating lease liabilities		(7,492	)
Other non-current liabilities		(1,900	)
Total liabilities		(150,824	)
Total purchase price consideration	$	2,083,375

Fair value of Zynga Stock Considerationissued⁽¹⁾		(1,137,673	)
Total cash consideration⁽²⁾	$	945,702

⁽¹⁾

^{The fair value of the Zynga Stock Consideration above is estimated based on the total shares issued of 116,564,861 and the closing stock price of Zynga’s Common A stock on July 1, 2020 of $9.76 per share.}

⁽²⁾

^{The amount shown represents the cash paid at closing (which includes the Escrow Consideration) as well as present value of the Deferred Consideration, which was estimated as $23.8 million at the acquisition date using a discount rate commensurate with the term of the Deferred Consideration of 4.9%.}