쮸떴app Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Basis of Presentation

Basis of Presentation	12 Months Ended
Dec. 31, 2020
Basis of Presentation	(1)혻혻Basis of Presentation The accompanying consolidated financial statements of 쮸떴app (�쑣傭퉍pp,�� 쐗e,�� 쐎ur,�� 쐕s�� or the �쏞ompany�� unless the context otherwise requires) represent a consolidation of certain media and entertainment related assets and businesses. All significant intercompany accounts and transactions have been eliminated in the consolidated financial statements. 쮸떴app, through its ownership of interests in subsidiaries and other companies, is primarily engaged in the media and entertainment industries primarily in North America and the United Kingdom. Our significant subsidiaries include Sirius XM Holdings Inc. (�쏶irius혻XM Holdings��), Formula혻1 and Braves Holdings, LLC (�쏝raves Holdings��). Our significant investment accounted for under the equity method of accounting is Live Nation Entertainment, Inc. (�쏬ive Nation��). On February 1, 2019, Sirius XM Holdings issued shares in conjunction with its acquisition of Pandora Media, Inc., which continues to operate as Pandora Media, LLC (�쏱andora��). See note 5 for more information regarding the acquisition of Pandora. 쮸떴app continues to maintain a controlling interest in Sirius XM Holdings following the share repurchases and issuances. As of December혻31, 2020, we owned approximately 76% of the outstanding equity interest in Sirius XM Holdings. In 2011, Qurate Retail, Inc. (�쏲urate Retail��) completed its split-off from 쮸떴app, and in 2014, 쮸떴app Broadband Corporation (�쑣傭퉍pp Broadband��) completed its spin-off from 쮸떴app. In addition, in 2014, 쮸떴app TripAdvisor Holdings, Inc. (�쑣傭퉍pp TripAdvisor��) completed its spin-off from Qurate Retail, and in 2018, GCI 쮸떴app, Inc. (�쏥CI 쮸떴app��) completed its split-off from Qurate Retail. 혻These transactions resulted in the separate corporate existence of 쮸떴app, Qurate Retail, 쮸떴app Broadband, 쮸떴app TripAdvisor and GCI 쮸떴app. Following these transactions, each of these companies operates (or in the case of GCI 쮸떴app, prior to its acquisition, operated) as separate publicly traded companies, none of which has any stock ownership, beneficial or otherwise, in the other (except that GCI 쮸떴app owned shares of 쮸떴app Broadband�셲 Series혻C non-voting common stock prior to the merger of GCI 쮸떴app and 쮸떴app Broadband in December 2020). In connection with the foregoing transactions, 쮸떴app entered into certain agreements with Qurate Retail, 쮸떴app TripAdvisor, 쮸떴app Broadband, and GCI 쮸떴app, respectively, in order to govern ongoing relationships between the companies and to provide for an orderly transition. As a result, these entities are considered related parties of the Company for accounting purposes through the dates of the respective transactions. These agreements include Reorganization Agreements (in the case of Qurate Retail and 쮸떴app Broadband only), Services Agreements and Facilities Sharing Agreements. The Reorganization, Services and Facilities Sharing Agreements entered into with Qurate Retail were assigned from 쮸떴app�셲 predecessor to 쮸떴app in 2013 in connection with a prior transaction. The Reorganization Agreements provide for, among other things, provisions governing the relationships between 쮸떴app and each of Qurate Retail and 쮸떴app Broadband, respectively, including certain cross-indemnities. Pursuant to the Services Agreements, 쮸떴app provides Qurate Retail, 쮸떴app TripAdvisor, 쮸떴app Broadband and GCI 쮸떴app (prior to termination) with general and administrative services including legal, tax, accounting, treasury and investor relations support. Qurate Retail, 쮸떴app TripAdvisor, 쮸떴app Broadband and GCI 쮸떴app (prior to termination) reimburse 쮸떴app for direct, out-of-pocket expenses incurred by 쮸떴app in providing these services and in the case of Qurate Retail, Qurate Retail�셲 allocable portion of costs associated with any shared services or personnel based on an estimated percentage of time spent providing services to Qurate Retail. 쮸떴app TripAdvisor, 쮸떴app Broadband and GCI 쮸떴app (prior to termination) reimburse 쮸떴app for shared services and personnel based on a flat fee. Under the Facilities Sharing Agreements, 쮸떴app shares office space and related amenities with Qurate Retail, 쮸떴app TripAdvisor, 쮸떴app Broadband and GCI 쮸떴app (prior to termination) at 쮸떴app�셲 corporate headquarters. Under these various agreements, approximately $28혻million, $46혻million and $30혻million of these allocated expenses were reimbursed to 쮸떴app during the years ended December혻31, 2020, 2019 and 2018, respectively. In December 2019, 쮸떴app entered into amendments to the Services Agreements with each of Qurate Retail, 쮸떴app TripAdvisor, 쮸떴app Broadband and GCI 쮸떴app in connection with 쮸떴app�셲 entry into a new employment arrangement with Gregory B. Maffei, its President and Chief Executive Officer. Under the amended Services Agreements, components of his compensation would either be paid directly to him by each of Qurate Retail, 쮸떴app TripAdvisor, 쮸떴app Broadband and GCI 쮸떴app (collectively, the �쏶ervice Companies��) or reimbursed to 쮸떴app, in each case, based on allocations among 쮸떴app and the Service Companies set forth in the amended Services Agreements. Following the merger between GCI 쮸떴app and 쮸떴app Broadband in December 2020, GCI 쮸떴app no longer participates in the Services Agreement arrangement due to the termination of its Services Agreement with 쮸떴app. In December 2020, in conjunction with the merger, GCI 쮸떴app made an executive termination payment to 쮸떴app of approximately $6 million. See note 13 for additional information related to termination payments. On January 26, 2021, 쮸떴app Media Acquisition Corporation (�쏬MAC��) consummated its initial public offering (the �쏧PO��) of 57.5 million units (the �쏹nits��), including 7.5 million Units sold pursuant to the full exercise of the underwriters�� overallotment option. Each Unit consists of one share of Series A common stock of LMAC and one-fifth of one redeemable warrant of LMAC. Each whole warrant entitles the holder thereof to purchase one share of Series A common stock for $11.50 per share, subject to adjustment, following the later of 30 days after the completion of LMAC's initial business combination and 12 months from the closing of the IPO. The Units were sold at a price of $10.00 per Unit, generating gross proceeds to LMAC of $575 million. Concurrently with the IPO, LMAC completed the private placement of 10 million warrants to its sponsor, 쮸떴app Media Acquisition Sponsor LLC (the �쏶ponsor��), a wholly-owned subsidiary of the Company, generating gross proceeds of $15 million. Each private placement warrant entitles the holder thereof to purchase one share of LMAC's Series A common stock for $11.50 per share, subject to adjustment, following the later of 30 days after the completion of LMAC's initial business combination and 12 months from the closing of the IPO. A total of $575 million was placed in a U.S.-based trust account. LMAC intends to search for a target in the media, digital media, music, entertainment, communications, telecommunications and technology industries, but may seek to complete a business combination with an operating company in any industry, sector or geographic area. Under the terms of the offering, the Company, through the Sponsor, owns 20% of LMAC�셲 issued and outstanding common stock and the Sponsor has committed to acquire $250 million of forward purchase units (each consisting of one share of LMAC�셲 Series B common stock and one-fifth of one redeemable warrant to purchase one share of LMAC�셲 Series A common stock) pursuant to a forward purchase agreement that will close substantially concurrently with the consummation of LMAC�셲 initial business combination. In addition, the Company, through the Sponsor�셲 ownership of LMAC founder shares, has certain governance rights which allow us to control LMAC�셲 affairs, policies and operations through the initial business combination. The Company�셲 ownership interest in LMAC will consist primarily of Series B common stock following the consummation of LMAC�셲 initial business combination, and is initially being attributed to the Formula One Group tracking stock.

Basis of Presentation

12 Months Ended

Dec. 31, 2020

(1)혻혻Basis of Presentation

The accompanying consolidated financial statements of 쮸떴app (�쑣傭퉍pp,�� 쐗e,�� 쐎ur,�� 쐕s�� or the �쏞ompany�� unless the context otherwise requires) represent a consolidation of certain media and entertainment related assets and businesses. All significant intercompany accounts and transactions have been eliminated in the consolidated financial statements.

쮸떴app, through its ownership of interests in subsidiaries and other companies, is primarily engaged in the media and entertainment industries primarily in North America and the United Kingdom. Our significant subsidiaries include Sirius XM Holdings Inc. (�쏶irius혻XM Holdings��), Formula혻1 and Braves Holdings, LLC (�쏝raves Holdings��). Our significant investment accounted for under the equity method of accounting is Live Nation Entertainment, Inc. (�쏬ive Nation��).

On February 1, 2019, Sirius XM Holdings issued shares in conjunction with its acquisition of Pandora Media, Inc., which continues to operate as Pandora Media, LLC (�쏱andora��). See note 5 for more information regarding the acquisition of Pandora. 쮸떴app continues to maintain a controlling interest in Sirius XM Holdings following the share repurchases and issuances. As of December혻31, 2020, we owned approximately 76% of the outstanding equity interest in Sirius XM Holdings.

In 2011, Qurate Retail, Inc. (�쏲urate Retail��) completed its split-off from 쮸떴app, and in 2014, 쮸떴app Broadband Corporation (�쑣傭퉍pp Broadband��) completed its spin-off from 쮸떴app. In addition, in 2014, 쮸떴app TripAdvisor Holdings, Inc. (�쑣傭퉍pp TripAdvisor��) completed its spin-off from Qurate Retail, and in 2018, GCI 쮸떴app, Inc. (�쏥CI 쮸떴app��) completed its split-off from Qurate Retail. 혻These transactions resulted in the separate corporate existence of 쮸떴app, Qurate Retail, 쮸떴app Broadband, 쮸떴app TripAdvisor and GCI 쮸떴app. Following these transactions, each of these companies operates (or in the case of GCI 쮸떴app, prior to its acquisition, operated) as separate publicly traded companies, none of which has any stock ownership, beneficial or otherwise, in the other (except that GCI 쮸떴app owned shares of 쮸떴app Broadband�셲 Series혻C non-voting common stock prior to the merger of GCI 쮸떴app and 쮸떴app Broadband in December 2020). In connection with the foregoing transactions, 쮸떴app entered into certain agreements with Qurate Retail, 쮸떴app TripAdvisor, 쮸떴app Broadband, and GCI 쮸떴app, respectively, in order to govern ongoing relationships between the companies and to provide for an orderly transition. As a result, these entities are considered related parties of the Company for accounting purposes through the dates of the respective transactions. These agreements include Reorganization Agreements (in the case of Qurate Retail and 쮸떴app Broadband only), Services Agreements and Facilities Sharing Agreements. The Reorganization, Services and Facilities Sharing Agreements entered into with Qurate Retail were assigned from 쮸떴app�셲 predecessor to 쮸떴app in 2013 in connection with a prior transaction.

The Reorganization Agreements provide for, among other things, provisions governing the relationships between 쮸떴app and each of Qurate Retail and 쮸떴app Broadband, respectively, including certain cross-indemnities. Pursuant to the Services Agreements, 쮸떴app provides Qurate Retail, 쮸떴app TripAdvisor, 쮸떴app Broadband and GCI 쮸떴app (prior to termination) with general and administrative services including legal, tax, accounting, treasury and investor relations support. Qurate Retail, 쮸떴app TripAdvisor, 쮸떴app Broadband and GCI 쮸떴app (prior to termination) reimburse 쮸떴app for direct, out-of-pocket expenses incurred by 쮸떴app in providing these services and in the case of Qurate Retail, Qurate Retail�셲 allocable portion of costs associated with any shared services or personnel based on an estimated percentage of time spent providing services to Qurate Retail. 쮸떴app TripAdvisor, 쮸떴app Broadband and GCI 쮸떴app (prior to termination) reimburse 쮸떴app for shared services and personnel based on a flat fee. Under the Facilities Sharing Agreements, 쮸떴app shares office space and related amenities with Qurate Retail, 쮸떴app TripAdvisor, 쮸떴app Broadband and GCI 쮸떴app (prior to termination) at 쮸떴app�셲 corporate headquarters. Under these various agreements, approximately $28혻million, $46혻million and $30혻million of these allocated expenses were reimbursed to 쮸떴app during the years ended December혻31, 2020, 2019 and 2018, respectively.

In December 2019, 쮸떴app entered into amendments to the Services Agreements with each of Qurate Retail, 쮸떴app TripAdvisor, 쮸떴app Broadband and GCI 쮸떴app in connection with 쮸떴app�셲 entry into a new employment arrangement with Gregory B. Maffei, its President and Chief Executive Officer. Under the amended Services Agreements, components of his compensation would either be paid directly to him by each of Qurate Retail, 쮸떴app TripAdvisor, 쮸떴app Broadband and GCI 쮸떴app (collectively, the �쏶ervice Companies��) or reimbursed to 쮸떴app, in each case, based on allocations among 쮸떴app and the Service Companies set forth in the amended Services Agreements. Following the merger between GCI 쮸떴app and 쮸떴app Broadband in December 2020, GCI 쮸떴app no longer participates in the Services Agreement arrangement due to the termination of its Services Agreement with 쮸떴app.

In December 2020, in conjunction with the merger, GCI 쮸떴app made an executive termination payment to 쮸떴app of approximately $6 million. See note 13 for additional information related to termination payments.

On January 26, 2021, 쮸떴app Media Acquisition Corporation (�쏬MAC��) consummated its initial public offering (the �쏧PO��) of 57.5 million units (the �쏹nits��), including 7.5 million Units sold pursuant to the full exercise of the underwriters�� overallotment option. Each Unit consists of one share of Series A common stock of LMAC and one-fifth of one redeemable warrant of LMAC. Each whole warrant entitles the holder thereof to purchase one share of Series A common stock for $11.50 per share, subject to adjustment, following the later of 30 days after the completion of LMAC's initial business combination and 12 months from the closing of the IPO. The Units were sold at a price of $10.00 per Unit, generating gross proceeds to LMAC of $575 million. Concurrently with the IPO, LMAC completed the private placement of 10 million warrants to its sponsor, 쮸떴app Media Acquisition Sponsor LLC (the �쏶ponsor��), a wholly-owned subsidiary of the Company, generating gross proceeds of $15 million. Each private placement warrant entitles the holder thereof to purchase one share of LMAC's Series A common stock for $11.50 per share, subject to adjustment, following the later of 30 days after the completion of LMAC's initial business combination and 12 months from the closing of the IPO. A total of $575 million was placed in a U.S.-based trust account. LMAC intends to search for a target in the media, digital media, music, entertainment, communications, telecommunications and technology industries, but may seek to complete a business combination with an operating company in any industry, sector or geographic area. Under the terms of the offering, the Company, through the Sponsor, owns 20% of LMAC�셲 issued and outstanding common stock and the Sponsor has committed to acquire $250 million of forward purchase units (each consisting of one share of LMAC�셲 Series B common stock and one-fifth of one redeemable warrant to purchase one share of LMAC�셲 Series A common stock) pursuant to a forward purchase agreement that will close substantially concurrently with the consummation of LMAC�셲 initial business combination. In addition, the Company, through the Sponsor�셲 ownership of LMAC founder shares, has certain governance rights which allow us to control LMAC�셲 affairs, policies and operations through the initial business combination. The Company�셲 ownership interest in LMAC will consist primarily of Series B common stock following the consummation of LMAC�셲 initial business combination, and is initially being attributed to the Formula One Group tracking stock.