Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets, net

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Intangible Assets, net
 3 Months Ended
Mar. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets, net
Intangible Assets, net

As a result of the Business Combination, the Company acquired definite-lived intangible assets that are primarily amortized on a straight-line basis. The Company's definite-lived intangible assets have assigned useful lives ranging from 1.5 to 8.5 years (weighted average of 7.2 years).

Intangible assets, net at March 31, 2014, consisted of the following (in thousands):
 
 
 
March 31, 2014
 
Weighted Average Useful Lives
 
Gross Carrying Value
Accumulated Amortization
Net Carrying Value
Intangible assets:
 
 
 
 
 
Definite life:
 
 
 
 
 
Existing technology - software
8 years
 
$
2,575

$
(429
)
$
2,146

Existing technology - games
6 years
 
12,331

(2,877
)
9,454

IPR&D
8 years
 
7,317

(457
)
6,860

Customer relationships
5.5 years
 
119,879

(16,282
)
103,597

Other
3.5 years
 
4,476

(2,109
)
2,367

Content library (acquired in business combination)
1.5 years
 
9,492

(1,573
)
7,919

Content library (acquired post business combination)
1.5 years
(1)
14,298

(12,800
)
1,498

Total intangible assets
 
 
$
170,368

$
(36,527
)
$
133,841

(1) Useful estimate based upon the content library acquired in business combination, which approximates historical experience.

Content library is classified on a standalone basis on the Company's condensed consolidated balance sheets as of March 31, 2013 and December 31, 2013. The remainder of content library is classified and included within the intangible asset amount. The Company expects to record amortization of the intangible assets as follows (in thousands):

Year ending December 31,       
Amount
2013 (3 months ended)
$
27,354

2014
23,134

2015
21,303

2016
19,151

2017
15,516

Thereafter
27,383

Total
$
133,841



The Company recorded amortization expense of $7.8 million and $4.2 million during the three months ended March 31, 2014 and 2013, respectively. Amortization expense excludes the amortization of the content library, which is included in cost of sales.