NEWPORT BEACH, Calif.--(BUSINESS WIRE)--Acacia Research Corporation (NASDAQ: ACTG) announced today that it has formed a strategic partnership with Veritone, Inc. Veritone is a leading cloud-based Artificial Intelligence (“AI”) technology company that is pioneering next generation search and analytics through their proprietary Cognitive Media Platform™ (CMP).
Under the partnership, Acacia will leverage its expertise to help Veritone build its patent portfolio and execute upon its overall intellectual property (“IP”) strategy. In order to enhance Veritone’s leadership position in the field of machine learning and AI, Acacia is providing $20 Million in funding to Veritone in the form of two $10 Million loans convertible into equity. Additionally, upon certain events and the achievement of milestones by Veritone, Acacia will have the opportunity to invest up to an additional $30 Million in Veritone, for a total of up to $50 Million. Acacia’s Board of Directors has unanimously approved the investment, and believes that this partnership with Veritone will be synergistic with Acacia’s innovative business strategy, further supporting Acacia’s strategic focus on viable IP. As a result of this transaction, Acacia is poised to maximize Veritone’s opportunity and directly benefit from their leadership position in the rapidly evolving and growing AI technology space. As part of the transaction, Louis Graziadio, Executive Chairman of Acacia, has joined the Veritone Board of Directors.
As the industry leader in patent licensing, Acacia has evaluated more technologies than nearly anyone focused in the IP licensing space. “Veritone is led by an impressive and proven management team and is developing one of the most exciting and promising technology platforms our team has ever seen,” stated Louis Graziadio. Veritone’s patented groundbreaking platform is redefining the future of AI across industries by enabling a broad catalogue of intelligent cognitive engines that collaborate to analyze unstructured data, audio and video content. "It is estimated that 50 percent of business solutions will incorporate predictive analytics computing functionality by 2020, and we look forward to developing strategies with Veritone to expand their global reach,” continued Mr. Graziadio. The AI market is expected to grow at an impressive rate of 54% over the next five years and is estimated to be valued at over $70 Billion by 2020 (Marketsandmarkets.com; BofAML).
Veritone is a next generation open AI platform with technology that uses multiple cognitive engines to analyze, index and search video and audio data. Veritone’s open platform renders every frame and every second of audio and video searchable for its content, such as objects, faces, voices, logos, sentiment, text and translation. This technology has the capability to revolutionize media search and discovery capabilities and enable independent intelligent cognitive engines to collaborate and reveal business optimization insights that were previously impossible or impractical to extract from video and audio sources. “Our mission to transform the world’s media and information into actionable intelligence is a simple notion with profound implications,” said Veritone Executive Chairman and CEO, Chad Steelberg.
Veritone is a leading cloud-based artificial intelligence technology company pioneering its Cognitive Media Platform™ (“CMP”), a cloud-based ecosystem that enables media, enterprise and government to extract value from the intelligence embedded in the world’s public and private media (audio and video) which comprises the vast majority of all global data produced each year. Founded in 2014, Veritone has already won several of the industry’s most prestigious awards including the 2016 Red Herring Top 100 North American Award. Veritone’s proprietary technology is protected by nearly 90 issued and pending patents and operates seamlessly across leading cloud infrastructures.
ABOUT ACACIA RESEARCH CORPORATION
Founded in 1993, Acacia Research Corporation (NASDAQ: ACTG) is the industry leader in patent licensing. An intermediary in the patent marketplace, Acacia partners with inventors and patent owners to unlock the financial value in their patented inventions. Acacia bridges the gap between invention and application, facilitating efficiency and delivering monetary rewards to the patent owner.
For more information, visit: www.acaciaresearch.com
Forward Looking Statements
This press release contains "forward-looking statements" within the meaning of the federal securities laws, which statements are subject to considerable risks and uncertainties. These forward-looking statements are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements other than statements of historical fact contained in this press release, including statements regarding the potential for Acacia to make a larger investment in Veritone; the potential conversion of the existing notes into Veritone equity; the ability of Acacia to evolve its business model and to help Veritone with its IP strategy; Veritone’s future market position within the Artificial Intelligence market; the capabilities, features and impact of Veritone’s platform and products; the ability to expand Veritone’s platform and geographic reach; and the value and growth rate of the Artificial Intelligence market. We have attempted to identify forward-looking statements by using words such as "anticipate," "believe," “could,” "estimate," "expect," "intend," "may," “plan,” “predict,” "project," "should," "will," or “would,” and similar expressions or the negative of these expressions.
Forward-looking statements represent our management’s current expectations and predictions about trends affecting our business and industry and are based on information available as of the time such statements are made. Although we do not make forward-looking statements unless we believe we have a reasonable basis for doing so, we cannot guarantee their accuracy or completeness. Forward-looking statements involve numerous known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements predicted, assumed or implied by the forward-looking statements. Some of the risks and uncertainties that may cause our actual results to materially differ from those expressed or implied by these forward-looking statements include the ability of Veritone to gain market acceptance for its technology platform and products; Veritone’s ability to remain competitive and scale to meet the growing AI market demands; the ability of Acacia and Veritone to collaborate on a comprehensive IP strategy; rapid technological change and intense competition within the technology industry in general, and the Artificial Intelligence industry in particular; and legislative or regulatory developments impacting the AI industry and the ownership of intellectual property rights. Additional risks and uncertainties that may cause our actual results to materially differ from those expressed or implied by these forward-looking statements are described in the section entitled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015, as well as in our other filings with the Securities and Exchange Commission.
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