Veritone Sells Media Agency to Insignia Capital Group

RADIO ONLINE | Wednesday, October 23, 2024

Veritone

In a strategic move to streamline its operations and enhance focus on artificial intelligence, Veritone has divested its media agency, Veritone One LLC, to Insignia Capital Group. The deal, valued at up to $104 million, is subject to various adjustments and includes potential earn-out cash payments based on Veritone One's future performance.

Veritone's CEO Ryan Steelberg highlighted the transaction as a pivotal shift for the company, aligning with its core mission to accelerate growth within the enterprise AI sector. "Divesting our legacy media agency marks a significant transformation in our journey towards prioritizing AI software and services," stated Steelberg. This strategic refocus is aimed at boosting long-term shareholder value and leveraging Veritone's proprietary AI platform, aiWARE.

The net proceeds from this divestiture will primarily be used to reduce Veritone's term debt significantly and to fund ongoing operations, which is expected to strengthen the company's financial position markedly.

Simultaneously, Insignia Capital Group has also acquired Oxford Road, another prominent audio advertising agency based in Los Angeles. Both agencies will continue to operate independently for the near term, capitalizing on their collective technological, analytical, and industry prowess to enhance client performance.