Market Overview

Veritone® Signs Agreement to Acquire Wazee Digital, Expanding Digital Asset Monetization Capabilities to Existing and Future Media and Entertainment, Government Customers

Share:

Veritone® Inc. (NASDAQ:VERI) today announced that it has
signed an agreement to acquire Wazee Digital, a leading provider of
cloud-native video management and licensing services that enable rights
holders to monetize and enrich their content. Veritone, the world's only
SaaS-based operating system for Artificial Intelligence (AI), will offer
the Wazee Digital applications and services into the Media and
Entertainment as well as Government markets, uniquely providing Veritone
customers with the ability to drive expanded revenue opportunities from
their existing video, still images and audio assets.

The consideration to be paid by Veritone in the transaction is $15.0
million, with such consideration being payable $7.5 million in cash and
$7.5 million in Veritone common stock. Wazee Digital, based in Denver,
Colorado, had net revenues of over $19 million in 2017. The acquisition
is subject to customary closing conditions, and is expected to close by
the end of August 2018. San Francisco-based GCA Advisors served as
banking advisor to Veritone on this transaction, and Waller Capital
Partners, headquartered in New York, advised Wazee Digital.

"Wazee Digital has a dynamic content licensing and asset management
business, one of the most comprehensive operational platforms for
monetization of digital media assets with a fantastic roster of
blue-chip customers. And now, as a result of the recent integration
between Wazee Digital's asset management platform and Veritone's
operating system for Artificial Intelligence -- aiWARE™ -- joint
customers can fully index, categorize, and package content on Wazee
Digital's platform, resulting in unparalleled additional revenue
opportunities," said Chad Steelberg, Veritone Founder & CEO.

Said Harris Morris, Wazee Chairman and CEO, "We're extremely excited to
leverage our best-in-class asset management and monetization
capabilities with Veritone's unique cloud-based AI operating system. The
combined solution will provide existing Wazee Digital customers such as
HBO, Bloomberg, Viacom, and FremantleMedia a proven, productized, and
enterprise-grade solution to intelligently identify new ways to
capitalize the value of their marquee content and ensure that content
securely reaches its rightful audiences around the globe." Added Chad
Hamilton, the Vice President, Technology at FremantleMedia, "I am
excited to see how our partnership with Wazee Digital benefits from the
expertise and increased insight that Veritone enables through artificial
intelligence. By incorporating AI into our cloud-based media asset
management workflow, FremantleMedia will have the ability to extract
more value from our assets."

Veritone and Wazee Digital have been collaborating together as
technology partners since 2017, with the first integration of the
companies' products completed in April of this year. The Wazee Digital
management team will add leadership and expertise by integrating into
Veritone's existing team. Veritone will apply its go-to-market
capabilities and growing sales channels to cross-sell aiWARE to existing
Wazee Digital customers and Wazee Digital's products and services to
Veritone customers and channels. Veritone will also be marketing the
combined offering into other verticals where the collection, management
and subsequent retrieval of key video, still images and audio assets are
essential.

About Wazee Digital

Wazee Digital enables rights holders to monetize and enrich their
valuable content. Wazee Digital's scalable solutions provide complete
control over content so that assets reach their rightful audiences
around the globe. It is the only asset management solution built from
the ground up to run natively in the cloud, and the only one to make
live moments available immediately for global publishing, syndication,
advertising, and sponsorship. With more than 15 years of experience in
digital content licensing, rights, and clearances, Wazee Digital has
long-standing relationships with significant rights holders in the film,
TV, sports, and advertising industries — all of whom rely on Wazee
Digital for managing content that fuels their business.

About Veritone

Veritone has created the world's first operating system for artificial
intelligence. Veritone's aiWARE operating system leverages the power of
cognitive computing to transform and analyze audio, video and other data
sources in an automated manner to generate actionable insights.
Veritone's aiWARE platform provides customers ease, speed and accuracy
at low cost. Veritone has been among the first to be recognized
by AWS for Machine Learning Expertise
, and has been recognized
by Oracle for Excellence in Application Development
. To learn more,
visit Veritone.com
and interact with us on Twitter
and LinkedIn.

Safe Harbor Statement

This news release contains forward-looking statements, including
without limitation statements regarding the acquisition of Wazee Digital
and the expected timing of closing the transaction, how Veritone plans
to leverage Wazee Digital's capabilities in its business, the expected
benefits of the acquisition to Veritone and its customers, the
expectation that Wazee Digital's management team will join Veritone, and
Veritone's sales channel strategy for the combined company's products.
Without limiting the generality of the foregoing, words such as "may,"
"will," "expect," "believe," "anticipate," "intend," "could," "estimate"
or "continue" or the negative or other variations thereof or comparable
terminology are intended to identify forward-looking statements. In
addition, any statements that refer to expectations, projections or
other characterizations of future events or circumstances are
forward-looking statements. Assumptions relating to the foregoing
involve judgments and risks with respect to various matters which are
difficult or impossible to predict accurately and many of which are
beyond the control of Veritone. Certain of such judgments and risks are
discussed in Veritone's SEC filings. Although Veritone believes that the
assumptions underlying the forward-looking statements are reasonable,
any of the assumptions could prove inaccurate and, therefore, there can
be no assurance that the results contemplated in forward-looking
statements will be realized. In light of the significant uncertainties
inherent in the forward-looking information included herein, the
inclusion of such information should not be regarded as a representation
by Veritone or any other person that their objectives or plans will be
achieved. Veritone undertakes no obligation to revise the
forward-looking statements contained herein to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.

View Comments and Join the Discussion!