An Ad Tech Firm Is on the Hunt for Smart AI Bets

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While OpenAI and Anthropic look to rein in the power of artificial intelligence before it destroys the world, AI agents are already busy taking over daily tasks in the ad business like building media plans, analyzing marketing data and creating commercials.

With AI poised to disrupt everything, ad tech giant Mediaocean is looking to not just keep up, but cash in through a new investment fund that will back AI-based startups. CEO Bill Wise explains his strategy to me.

Meanwhile, we’ve got the latest intel on Venture Capital financing in August from Pitchbook. Also, after a blitz of investor conferences, analysts have adjusted target prices for several entertainment and media stocks and I track the biggest changes.

Finally, we have the latest on the ongoing Paramount-Warner Bros. Discovery takeover battle.

Thanks for reading.

THE DEEP DIVE

Bill Wise (Photo courtesy of Mediaocean)

Mediaocean Dives Into AI With Investment Fund

With artificial intelligence overrunning the advertising business, Mediaocean is embracing the technology in a big way. It’s not just incorporating the latest AI agents into its systems like most ad-tech companies, but setting up a fund that will invest in promising startups.

Mediaocean is a private company whose planform is used to manage, track and execute ad campaigns, handling about $200 billion in ad spending annually. It has been bulking up its AI capabilities, launching an agentic system Nivo AI, adding copilots to its products and building other infrastructure agents.

Its CEO, Bill Wise, told The Ledger that Mediaocean AI Ventures plans to invest as much as $5 million in each of the early-stage companies it selects. The process of identifying target companies started several weeks ago, with about 35 companies already contacted. He declined to name those companies.

“We prefer not to lead rounds, so we’ll be working with existing venture capital funds and investors in the space,” Wise said. Mediaocean Chief Strategy Officer Guy Kuperman will head the fund’s investment committee. Mediaocean will not be requiring a seat on the board of the companies in its portfolio.

Mediaocean AI Ventures will invest as much as $5 million in the AI-based ad-tech and marketing technology startups it works with.
The venture fund works with CVC Capital Partners, TA Associates and Eterna Growth partners
Mediaocean AI Ventures has already talked with about 35 firms and is holding events in Tel Aviv, New York and Los Angeles to attract startups.
Mediaocean CEO Bill Wise is a long-time angel investor who bought stakes in EDO, Moat, Integral Ad Science and SpaceX.

Wise declined to say how much in total he expected to invest.

“This is cash that’s sitting on our balance sheet today,” he said. “We didn’t have to go out and raise money for this. It could be very sizable.”

Mediaocean AI Ventures will be collaborating with CVC Capital Partners, TA Associates and Eterna Growth Partners. They will serve on its investment committee and provide infrastructure to help with due-diligence and other functions.

Mediaocean’s Guy Kuperman (left) with Zvika Netter, CEO and founder of Innovid and and chief innovation officer of Mediaocan, at an AI Ventures event in Tel Aviv.

In addition to funding, Mediaocean will use its own technology and relationships to connect startups with players in the ad business.

“We think that by providing capital, it brings us one step closer to the company. There’s partnership, there are strategic partnerships and then there are people on the cap table,” he said. “When you’re talking about embracing early-stage companies and bringing them into the ecosystem, you’re creating a lot of value for them. We want to make sure we see the value that we’re helping to create.”

Mediaocean is drumming up interest among startups by holding events in the tech hotbeds of Tel Aviv, New York and Los Angeles. “We’re going to be very active in the space,” Wise said.

For the New York event, taking place during Advertising Week, Mediaocean is working with Aperiam Ventures.

“We don’t think we’re going to do this all alone,” Wise said. “Investing is good, but it’s about finding companies so we can embrace their innovation and integrate them into our tech stack, introduce them to the customers and partners we already have. That can be a recipe for a win-win.”

Wise knows startups. He was an early employee at DoubleClick before it was acquired by Google and Right Media before it was bought by Yahoo. He helped found Mediabank, which acquired Donovan Data to become Mediaocean.

Angel Investor

He’s also been an angel investor for decades, separate from Mediaocean. His company, Click Ventures, has invested in ad tech, marketing and measurement companies including Moat, acquired by Oracle, Integral Ad Science, which went public and was acquired by private equity firm Novacap and, lastly, Convertro, bought by Verizon Communications. Click Ventures is currently invested in martech businesses like EDO, MediaWallah, Brandlight and Marketecture, as well as Perky Jerky and Komos Tequila. It also had a stake in SpaceX before it went public. Wise won’t say how much money he made on SpaceX until the stock lockup period ends.

Wise said that when investing in startups, the personality of the founder is crucial.

“I think the majority of startups don’t end up in the business that they meant to be in,” he said. “So, meeting founders, looking them in the eyes, and knowing that if they need to shift business models, they’ll be the last ones in the office turning the lights out at night. I think that’s key, absolutely.

He added: “As an entrepreneur, I love embracing people with a vision and the courage to go after it.”

DEAL SHEET

AMC Global Media sold its Allblk streaming service to Charles D. King’s company Macro, which focuses on programming for people of color. AMC has an ownership stake in Macro. Financial terms were not disclosed. “We will continue to be involved as investors and through a licensing agreement between our companies that will serve these passionate fans for years to come,” said AMC CEO Kristin Dolan.
Mark Walter and Todd Boehly agreed to sell their 25% stake in Chelsea of the English Premier League to private equity firm Clearlake Capital for $1.3 billion. Walter is also selling the Los Angeles Lakers amid a federal probe into his insurance business. Evercore was the lead financial advisor on the deal, working with The Raine Group, BDT&MSD Partners and BofA Securities. Goldman Sachs advised Walter and Boehly.
Lightstorm Vision, James Cameron’s 3D technology company, acquired Outsyders, an AI tech startup specializing in 3D content. Financial terms were not disclosed. Outsyders was formed in 2024 by special effects producers Paul Becker, Jared Sandrew and Chris Harvey. The two companies worked together on Paramount’s summer release “Billie Eilish – Hit Me Hard and Soft: The Tour (Live in 3D).”
SkyShowtime, the European streaming joint venture of Comcast and Paramount Skydance might shut down, according to a letter sent by the venture’s board to CEO Monty Sarhan. The letter said that the JV was undergoing a strategic review, but that no decision had been rendered.

FUNDING FILE

Venture capital deal activity in the U.S. media company category leaped in volume to $622.9 million thanks to a single deal, according to new data from Pitchbook.

The biggest deal in August was live marketplace Whatnot raising $547 million in a Venture Growth round led by Alkeon Capital that left Whatnot with a $20 billion valuation.

Also participating in the financing were Alphabet, Andreessen Horowitz, Avra, BOND Capital, CapitalG, DST Global, Durable Capital Partners, Greycroft, ICONIQ Capital, Kleiner Perkins, Lightspeed Venture Partners, Robinhood, S32, Standard Capital (North America), Wellington Management and Y Combinator.

There were only 13 deals in August, compared to 16 smaller ones in July. A year ago, there were 26 deals worth $48.6 million in the month of August.

VC activity in the U.S. entertainment software, publishing and media and information category.

Venture capital activity in the U.S. entertainment software, publishing and media and information category grew to $118 million in August from $96.37 million in July, but fell dramatically from a year ago, according to Pitchbook.

There were 33 deals done in August, the same number as July. A year ago, there were 35 deals worth $447.99 million, Amazon invested $50 million in Showrunner, a startup that created viral unauthorized AI-created episodes of “South Park.”

The biggest individual deal this August saw video game publisher Delphi Interactive raise $27.1 million in later VC funding.

Other big funding deals involved Workweek, which publishes content from industry experts, raising $17 million in a later VC round led by Apenam Ventures and Next Coast Ventures and online car auction company Bidbus getting $15 million. Participants in Bidbus’ financing included Antonio Davila, Data Point Capital, FJ Labs, Gregory Kirber, Ibex Investors, Motley Fool Ventures, Mucker Capital, Ryan Steingard, Walter Ventures and Yossi Levi.

WRAP 20 INDEX

Here’s how the companies in our Wrap 20 Index performed this week.

FINANCIAL ROUNDUP

B. Riley’s Big Ideas

Following B. Riley Securities’ 9th Annual Consumer and TMT Conference, the company’s analysts named their top investment ideas. Drew Crum, who follows media, named Angel Studios, which distributes uplifting, value-oriented films in theaters and on its streaming platform. He rates the company a buy with a price target of $8 a share.

“We have been encouraged by Angel’s ramp to profitability, a feat that has occurred much faster than we had originally anticipated,” Crum said. Membership is up to 3 million, and the company plans to add more than 700 pieces of content to its library.

Angel’s stock is up 20% this year but still trades at only 1.5 times estimated 2027 revenue. Crum said the multiple could grow to 2.5 times revenue, justifying an increase in share price.

B. Riley analyst Josh Nichols picked data company Genius Sports Ltd., with a target price of $10.50. The company’s “dual-pillar model, spanning betting data and media, continues to set up well heading into a seasonally strong second half, with the peak of the sports calendar now underway,” Nichols said.

“We also think investors still underappreciate how many distinct ways Genius can monetize the prediction markets buildout,” he said, adding that “management believes the economics per dollar of prediction market activity can match or exceed those from a traditional sportsbook.”

Estimates Lowered, but Comcast Still a Buy

Deutsche Bank analyst Bryan Kraft lowered its earnings before interest, taxes, depreciation and amortization estimates for Comcast by 0.8% in 2026 and 0.6% in 2027. Kraft, who still rates Comcast stock as a buy with a target price of $32 a share, said the main reason for the reduced forecast is continued headwinds at the company’s theme parks. He also sees Ebitda for Comcast’s Connections & Platforms division dipping by 0.3% in 2026 and 0.4% in 2027 compared to his earlier estimates.

Comcast stock fell last week after execs told investors at a conference that its broadband business was facing competitive headwinds from aggressive fiber pricing.

Kratt increased his Ebita estimate for Comcast’s Universal unit, citing box office numbers for “The Odyssey” and “Minions & Monsters.” He said that after 2026, he sees media earnings growing in 2027 and beyond.

Evercore Raises Netflix Target to $110

Evercore ISI analyst Mark Mahaney reiterated his outperform rating on Netflix, raising his target price to $110 a share from $100 a share.

Mahaney cited survey work in the U.S. and Japan that points to areas of growth the market might be missing. He sees Netflix benefitting from live event programming, including sports, which can boost subscriber numbers. Offering the live stream of the World Baseball Classic gave Netflix a boost in Japan.

He also said short-form Netflix Clips content on the streamer’s mobile apps could boost viewing.

The Paramount-WBD Saga (Continued)

Paramount and the state attorneys general looking to block Paramount’s acquisition of Warner Bros. Discovery, were ordered to appear at a settlement conference on Oct. 14 and 15 in San Francisco.

Magistrate Judge Thomas S. Hixson told the parties they have till Oct. 7 to produce settlement statements that will lay out the issues in dispute, their claims and defenses, and describe the relief needed to resolve the case.

Meanwhile, the Justice Department filed a statement with the court that backed Paramount’s demand that the states post a $1.88 billion bond to cover the potential cost the company would incur if closing the deal is delayed further. Paramount is on the hook to pay WBD subscribers a $7 million a day “ticking fee” after Oct. 1.

And a study conducted by the Los Angeles County Economic Development Corp. found that if Paramount went through with its threat to leave California, it would cost the state 28,990 jobs and between $10.6 billion and $21.2 billion in economic activity. The report was leaked to Politico.

Paramount notified California AG Rob Bonta and L.A. Mayor Karen Bass of its intention to leave California. The company is reportedly being courted by Texas and looking for real estate in Nashville.