Business
Veritone Announces the Divestiture of its Media Agency for up to $104 Million
Divestiture Focuses and Accelerates Strategy as a Leading Enterprise AI Software, Applications, and Services Provider Advances Strategic Priorities to
About this update from Veritone, Inc.
[{"type":"text","content":"\nDivestiture Focuses and Accelerates Strategy as a Leading Enterprise AI Software, Applications, and Services Provider\n\nAdvances Strategic Priorities to Deleverage and Optimize Balance Sheet, with a More Efficient Operating Cost Structure\n\nVeritone Exits from the Divestiture with Over 3,000 Enterprise AI & Software Customers, across both Commercial & Public Sectors\n\n DENVER--(BUSINESS WIRE)--\nVeritone, Inc. (NASDAQ: VERI) (“Veritone” or the “Company”), a leader in building human-centered enterprise AI solutions, today announced that it has sold its media agency, Veritone One, LLC, to Insignia Capital Group (“Insignia”).\n\nTotal consideration from the divestiture is up to $104.0 million, subject to customary purchase price adjustments and including up to $18.0 million in cash subject to an earn-out based on Veritone One’s achievement of certain net revenue targets during calendar year 2025. Net proceeds will be used to retire a significant portion of Veritone’s term debt and to fund future operations. The transaction significantly strengthens Veritone's balance sheet and liquidity, allowing Veritone to concentrate on accelerating the growth of its enterprise AI software and solutions, powered by its proprietary aiWARE platform. This strategic focus is designed to enhance long-term shareholder value and position Veritone for sustained success in the AI sector.\n\n“Divesting our legacy media agency is a transformative and material move in Veritone's mission to accelerate growth and sharpen our focus on enterprise AI. When appointed as CEO, our goal was clear—streamline operations, bolster our financials, and zero in on what we do best: AI software and services. Now, as we near the close of fiscal 2024, we're in a prime position to capitalize on the booming demand for AI and leverage the strength of Veritone’s aiWARE platform, applications, and solutions. This divestiture isn’t just another step—it’s the inflection point that unlocks material value for our shareholders and solidifies our leadership in delivering cutting-edge AI at scale. I couldn't be more excited about where we're headed,” said Ryan Steelberg, CEO & President of Veritone.\n\nSteelberg continued, “Today marks a pivotal moment for Veritone, reshaping our trajectory and positioning us for the next stage of growth. By leveraging our leading AI technology, indu...