Company: STGW
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0000876883-25-000009
Chunk: 132

Company: Stagwell Inc
Filing Date: 2025-03-11
Form: 10-K
Item: Item 8
Chunk 132
---
 of Operations.

81

The following table presents changes in deferred acquisition consideration and a reconciliation to the amounts reported on the Consolidated Balance Sheets as of December 31,:20242023(dollars in thousands)Beginning balance$101,058 $161,323 Payments (1)(67,895)(97,447)Adjustments to deferred acquisition consideration (2)23,005 14,303 Additions (3)46,598 22,172 Currency translation adjustment(651)680 Other — 27 Ending balance (4)$102,115 $101,058 (1) Includes deferred acquisition consideration payments settled in shares of Class A Common Stock of $18.2 million and $32.8 million, respectively, for the periods ended December 31, 2024, and December 31, 2023.(2) Adjustments to deferred acquisition consideration contains fair value changes from the Company’s initial estimates of deferred acquisition payments and accretion of expense as awards are earned over the vesting period. (3) Additions in 2024 of $46.6 million include $28.1 million related to the Company’s acquisitions (See Note 4 for further information). It also includes $17.0 million related to a reclassification from redeemable noncontrolling interest to deferred acquisition consideration in connection with the purchase of the remaining 40% interest the Company did not previously own in a certain Brand. This amount will be paid in cash in 2025. Additions of $22.2 million in 2023 represents a reclassification from redeemable noncontrolling interest to deferred acquisition consideration. Specifically, in 2021, the Company entered into an agreement to purchase the remaining 26.7% interest in Targeted Victory it did not previously own. The agreement provided for the purchase of 50% of the interest on October 1, 2021 (paid in October 2023) and 50% on July 31, 2023 (payable in October 2025). In connection with the purchase, the estimated amount payable in October 2025, was reclassified from redeemable noncontrolling interest to deferred acquisition consideration in 2023. 

(4) The contingent and fixed deferred acquisition consideration obligation was $102.1 million and $0.0 million, respectively, as of December 31, 2024, and $57.5 million and $43.6 million