Acacia Makes Investment In and Forms Strategic Partnership with Veritone
August 23 2016 - 10:00AM
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.
ABOUT VERITONE
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.
Except as required by applicable law or the listing rules of the
NASDAQ Stock Market, we expressly disclaim any intent or obligation
to update any forward-looking statements, or to update the reasons
actual results could differ materially from those expressed or
implied by these forward-looking statements, whether to conform
such statements to actual results or changes in our expectations,
or as a result of the availability of new information.
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version on businesswire.com: http://www.businesswire.com/news/home/20160823005525/en/
Investor Relations & Media:Acacia Research
CorporationRob Stewart, +1 949-480-8300rs@acaciares.com
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