6.    Other Long-Term Assets

Other long-term assets consisted of the following:

In June 2013, the Company purchased certain internet radio-related patents from Yahoo! Inc. for $8.0 million in cash. The Company intends to hold these patents as part of its strategy to protect and defend itself from patent-related litigation. These patents will be amortized over a period of eleven years.

The Company is party to a cash collateral agreement in connection with the issuance of letters of credit that were used to satisfy deposit requirements for facility leases. As of July 31, 2013, $4.0 million cash collateral was considered to be restricted cash, of which $3.5 million was included in other long-term assets and $0.5 million was included in prepaid expenses and other current assets on the Company’s balance sheets. Refer to Note 9 “Debt Instruments” for additional details.

Pending Acquisition

On June 5, 2013, the Company entered into a local marketing agreement to program KXMZ-FM, a Rapid City, South Dakota-area terrestrial radio station. In addition, the Company entered into an agreement to purchase the assets of KXMZ-FM for a total purchase price of approximately $0.6 million in cash, subject to certain closing conditions. As of July 31, 2013, the Company has paid $0.4 million of the purchase price, which is included in the other current assets line item of the Company’s balance sheets.

The completion of the KXMZ-FM acquisition is subject to various closing conditions, which include, but are not limited to, regulatory approval by the Federal Communications Commission. Upon completion of these conditions, the Company expects to account for this acquisition as a business combination.