Software provider Veritone explores potential sale

Veritone Inc., which makes operating systems to run artificial intelligence programs, is exploring options including a potential sale or outside investment after receiving takeover interest, according to people familiar with the matter. The stock rose as much as 30%.

The Newport Beach, California-based company is working with a financial adviser, said the people, who asked to not be identified because the matter isn’t public. Larger technology companies are interested in investing hundreds of millions of dollars into the company or buying it outright, the people added.

The company would be interested in transactions valuing it at more than $70 a share, the people said. No final decision has been made and the company could opt to remain independent.

Veritone rose 19% to $34.53 at 10:59 a.m. in New York on Tuesday, giving it a market value of $1.1 billion.

A Veritone representative declined to comment.

The company said last week that it expected to generate revenue of $76 million to $81 million this year, up from $58 million in 2020.

Veritone announced a partnership with chipmaker Nvidia Corp. last month related to technology that’s intended to improve energy grids, a statement showed.

The company was founded by brothers Chad and Ryan Steelberg in 2014 and went public in 2017 on Nasdaq. It competes with Inc., founded by former Oracle Corp. executive Tom Siebel.

— Liana Baker (Bloomberg Mercury)