On Monday, October 21st, I wore a smile that could’ve spanned the Golden Gate Bridge.

And no, it wasn’t just because I’d celebrated my 29th birthday the night before. It wasn’t even because I’d finally finished painting a room in my new home.

This smile was courtesy of the latest buzz: Insignia Capital Group, a San Francisco-based private equity firm, has acquired both Oxford Road and Veritone One.

But, more specifically, I’m grinning because many of you messaged me early Monday to insist I write on it. So here I am—welcome to this edition of The Roast.

Grab your mugs; this story is hot!!

The Facts

1. Veritone sold its Podcast Agency to Insignia Capital Group for up to $104 million, keeping the AI side of the business independent.

2. Oxford Road was also sold to Insignia Capital Group (undisclosed amount).

3. Dan Granger, CEO and founder of Oxford Road is now the CEO of Veritone as well. For now, both agencies will remain separate under his management.

The Veritone Deal Smells.

To me, the Veritone deal felt…off. The numbers seemed low, and as I sat with the news, it started to feel like Veritone was getting “milked.” Here’s why:

Veritone was carrying a significant debt burden from its AI investments. With close to $40 million in reported debt, selling the podcast agency feels like a bailout move to offset losses. In exchange, Veritone’s profitable agency wing now falls under Granger’s leadership.

Initially, the sale price seemed like a lowball. Maybe not a massive miss, but I expected closer to $150-200 million. Here’s my thought process:

• Revenue Decline: Based on Veritone’s 2022-2023 SEC filings, managed services revenue slipped from $65 million to $59 million. This kind of decline wasn’t unusual in 2023, given the drop-off in Dynamic Ad Insertion (DAI) spending due to changes like iOS 17.

• Valuation Calculation: With the $104 million deal, the multiple on gross revenue is just over 2x. In agency acquisitions, a 5-year or longer horizon to recover the investment is typical—this price suggests Insignia may break even in less time.

Let’s assume Veritone’s managed services make about $50 million in gross revenue based on 2022/2023 filings.

1. People Costs: With around 100 employees (by LinkedIn estimates) and a rough average salary of $100k, people costs total around $10 million.

2. Overhead: Software, legal, processing fees, office space—let’s estimate $10 million here (being generous).

3. Other Losses: Another $10 million could be lost to unknowns and other factors, bringing profits to around $20 million—a high 40% profitability ratio likely feeding into AI investments.

This structure suggests Insignia could break even on the Veritone deal much faster than expected, given Veritone’s lean, profitable agency model—arguably a good deal for Insignia.

Oxford’s Road to First Place

In the landscape of podcast agencies, Oxford Road held a strong third place, just behind Ad Results Media (ARM) and Veritone One. With Insignia’s backing, Oxford now has a real claim to the top spot in managed ad dollars. Give me a few more years, Dan… I’m coming for you 😉 ^_.

Here’s how it shakes out:

Oxford is already a profitable operation with no visible debt and a robust client roster, buoyed by big names like Shopify. Now, with Dan Granger overseeing both Oxford and Veritone, there’s strong potential for the agencies to merge, positioning the new combined entity as the frontrunner in the podcast ad world.

Consolidation and Buying Power

From conversations with executives and posts I’ve seen, the outward message here is clear: more consolidated buying power could push for better industry standards and terms, favoring brands over intermediaries. Centralizing power among podcast-focused agencies could also mean more leverage in negotiations.

That said, there’s also a risk of creating an oligopoly that could stifle competition. Consolidation might reduce options for brands, potentially lowering the competitive edge needed to drive results. Selfishly, I see benefits for ADOPTER as we move up in the rankings into a solid third place for specialized podcast agencies. But on a broader level, I’m grappling with what this means for the industry as a whole.

Ultimately, how Granger handles this next chapter could either elevate industry standards or restrict them—time will tell.

“With great power…”

I personally am not totally convinced this is purely altruistic. This is business after all. What’s good for the industry may also be good for the business, but they are not always directly correlated.

I have some sincere skepticism that remains.

The Aftermath: What to Expect

Mergers of this scale rarely go without a few bumps. Here’s what we might see in the months to come:

1. Employee Adjustments: It’s typical for mergers to result in some restructuring, and layoffs are not uncommon. Both Oxford Road and Veritone have their own established teams and processes, so roles that overlap might face consolidation. In fact, in August likely as the deal was in negotiations, Veritone had made some lay-offs (potentially in anticipation of this deal).

2. Client Retention: Clients may take a “wait and see” approach, especially with two agency cultures blending under a new management structure. Some could decide to leave, while others might see this as a promising new partnership. How Granger balances these relationships will be crucial.

3. Process Integration: Will Oxford Road’s methodologies shape Veritone’s processes, or vice versa? There’s potential for innovation, but there’s also the chance for friction as each team adapts to new protocols and shared goals.

While the short term could bring challenges, these transitions are a standard part of industry growth, and Insignia seems confident that Granger is the right fit for the job. I think I concur, though I frankly don’t know Dan well. I just have heard him talk about Brand Safety a few times—I joke. In terms of the impact of voice, Granger dwarfs most others (except me, of course… cause we all know the Roast is going to the MOON).

Personally, I’m optimistic. This merger could elevate industry standards by holding networks and tech to a high standard—only if we assume “Oxford Tone” (I’ll come up with something better) has the spine and purest of intentions, but it won’t come without growing pains.

I still think Veritone sold for a bit too little. But, overall it’s not a bad sign.

In talking with several ex-Veritone/Oxford employees, there’s some concerns in the merging of two competitive cultures.

What I’m Thinking:

As this merger unfolds, here are a few developments I’ll be watching:

1. Talent Shifts: In the coming months, I won’t be surprised to see talent from Oxford Road and Veritone One entering the job market. Restructuring often opens up opportunities for boutique agencies to scoop up new hires and even gain a few hires.

2. Client Loyalty Tests: Clients will likely reevaluate their relationships with Oxford-Veritone. Mergers introduce new leadership and processes, and brands may be cautious about whether this shift aligns with their values and needs. We could see some drift toward smaller agencies (like ADOPTER), especially if they feel squeezed by bigger budgets and limited agency options.

3. Category Exclusivity in Question: The big agencies have historically kept competitor brands exclusive. For example, we’ve worked closely with BlueChew, and representing a direct competitor wouldn’t be feasible without conflict. But as this new mega-agency forms, we’ll see if category exclusivity continues or if Oxford-Veritone redefines boundaries to better serve both sides. This may be a non-issue.

Of course, we’ll also see how long it takes Insignia to integrate both agencies fully. Whether this is a smooth blend of two approaches or a stormy adjustment period will define the short-term success of this move.

Savelli is likely right that this puts a performance hat in the ring for the business of more blue chip companies. Which could mean smarter buying blue chip brands… which is a good thing for this industry as most of these blue chip companies spending in podcasting make ludicrous decisions. So maybe this will be the next great thing since iOS 17 🤷 .

In Conclusion…

The merger between Oxford Road and Veritone One has stirred up a lot of buzz—and for good reason. With Dan Granger at the helm, Insignia Capital is positioning this combined agency to redefine standards in podcast and creator-driven advertising. The near-term will undoubtedly bring challenges, from employee restructuring to clients navigating a new agency landscape. But with Granger’s industry experience and Insignia’s backing, there’s strong potential for this merger to elevate how brands leverage audio advertising.

Personally, while I’m a bit wary of consolidation’s impact on competition, I also see real opportunities for smaller agencies to step in with fresh perspectives and nimble strategies. And for ADOPTER Media, this merger opens up a podium position as we edge closer to the top ranks.

I’ll be keeping a close eye on how this unfolds, watching for everything from industry shifts to which clients (and talents) find new homes. Here’s to hoping that this merger steers the industry in a positive direction—more transparency, better results for brands, andnew heights for podcast advertising.

Thanks for reading The Roast. Until next time, keep those mugs filled, and happy podcasting.

The real question that keeps me up is: What did Oxford go for to Insignia Capital Group?