Wazee Digital Acquired by Veritone

Josh Stinehour | August 13, 2018

Veritone announced the acquisition of Wazee Digital, a provider of video management and licensing services to media and entertainment clients.  Many observers may recognize Veritone as one of the emerging providers of Artificial Intelligence solutions in the media sector.  

According to the press release announcing the deal, Wazee Digital had net revenues of $19 million during the 2017 calendar year.  This is actually larger than Veritone’s revenue in 2017, which was $14.4 million. 

The two companies announced a commercial partnership ahead of the 2017 IBC Show.  The partnership provided for Wazee to offer its media clients access to Veritone’s AI solutions (this portion of Veritone’s business had revenue of $1.5 million in revenue in 2017).

Veritone’s regulatory filings reviews the structure of the deal at a price of $15 million, consisting of 50% Veritone stock and 50% cash. The transaction is anticipated to close in August 2018.  

Veritone is not providing further details about the acquisition until next Monday, August 20, 2018.

The implied multiple of Wazee’s annual revenue (2017) is then 0.8x.  This is in-line with the revenue multiple of Belden’s purchase of SAM.   

Wazee Digital is the third trade name of the business.  It was founded as Thought Equity Motion in 2003, renamed to T3 Media in 2012, and then rebranded as Wazee Digital in 2015.  Reading through the various SEC filings and press releases suggests Wazee had received upwards of $75 million dollars from investors across several rounds of investment.  At least $48 million of this money appears to have gone into Wazee, other amounts may have purchased the equity of prior investors (it is unclear from filings and press releases).  The most recent round of funding occurred in May 2015 for $2.5 million.

An August 2011 Business Insider article stated its (then Thought Equity Motion) run-rate revenue was $25 million.  Business Insider estimated the Company’s then (2011) valuation at $200 million by applying an 8x sales multiple. 



Related Content:

Veritone Press Release Announcing Acquisition of Wazee

Wazee Press Release Announcing Veritone Partnership

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