Enterprise capital valuations in media fell 69% within the first two months of 2026 from a yr in the past, in line with new information from PitchBook, signaling a tough yr forward for media and publishing corporations as traders on this space take an “AI-first” method.
There was $165 million price of VC dealmaking exercise throughout January and February within the media sector, down from the $529.12 million throughout the identical two-month interval a yr in the past, in line with the agency.
January had 25 complete offers valued at an combination of $48.8 million, in comparison with 37 offers valued at $390 million a yr in the past. February had 22 offers complete valued at an combination of $115.8 million, in comparison with 23 offers valued at $139.3 million a yr in the past.
When taking a broader look throughout leisure software program, publishing, media and data through the two-month interval, there was a complete of $760 million in VC deal exercise, down from $3.4 billion throughout the identical interval a yr in the past, which was primarily pushed by the augmented reality-focused startup Infinite Actuality. January made up the lion’s share with 40 complete offers valued at an combination of $435.3 million, whereas February had 16 complete offers valued at an combination of $325.2 million.
“AI is the story of enterprise in the mean time, and corporations which are capable of harness that story and drive higher content material will be capable of increase, but it surely’s going to be a difficult yr,” PitchBook’s director of VC analysis Kyle Standofrd advised TheWrap.
“Whether or not that be video, picture, written textual content or a combination, the flexibility to create focused, high-quality content material for finish customers is a giant space of development. Content material is ubiquitous throughout industries, so for funding, the chance to create giant corporations or assist corporations drive income by automated content material is gigantic.”
Stanford says that the lower in deal values over the previous yr indicators that the VC market is “attempting to determine how greatest to method these corporations because the capabilities of AI speed up.”
“Each market is transferring to AI-first for VC funding,” he added. “For your entire U.S. market, AI funding represented 10% of deal rely a decade in the past. Now it’s 40%. That sort of development goes to vary each trade, and it’s one thing we anticipate to proceed accelerating.”
As for M&A offers, Paramount’s pending takeover of Warner Bros. Discovery and Apollo World Administration’s buyout of Clear Channel Outside Holdings have been the most important by dimension.
Learn on for the complete breakdown.
“AI is the story of enterprise in the mean time, and corporations which are capable of harness that story and drive higher content material will be capable of increase, but it surely’s going to be a difficult yr.” – PitchBook
VC Investments: Lead the Future, Semafor and Large Shot Footage prime January and February
Within the AI sector, Enviornment Intelligence, an organization that enables customers to match giant language fashions by head-to-head matchups, acquired the most important VC funding of the month, elevating $150 million. Andreesen Horowitz and Kleiner Perkins are amongst its traders.
“We can’t deploy AI responsibly with out realizing the way it delivers worth to people. To measure the true utility of AI, we have to put it within the fingers of actual customers,” Enviornment Intelligence co-founder Anastasios Angelopoulos stated in a press release. “This funding accelerates the scientific work and neighborhood insights that make dwell analysis from actual customers the gold normal for assessing AI in observe.”
Benjamin Horowitz and Marc Andreesen are additionally traders in Main the Futurean excellent PAC centered on lobbying for insurance policies pleasant to the AI trade, which raised $125 million. Its different traders embrace OpenAI president Greg Brockman and Palantir Applied sciences co-founder Joseph Lonsdale.
Within the media sector, Ben and Justin Smith’s Visitors lights hit a $330 million valuation after elevating $30 million in January. The transfer got here on the heels of the outlet reaching a full yr of profitability simply three years after launch, with $40 million in income and $2 million in EBITDA. Buyers embrace Antenna Group, KKR co-founder Henry Kravis, Carlyle Group’s David Rubenstein and Penny Pritzker’s PSP Companions, amongst others.
“The proof is within the numbers: We’ve set a brand new historic normal for the worldwide information trade at a time when it’s extra challenged than ever,” Justin Smith stated in a press release. “With this profitable, worthwhile mannequin in place, we are going to aggressively put money into our world journalism and convening platforms within the U.S. and around the globe.”
In the meantime, former Paramount co-CEO Brian Robbins’ new enterprise Large Shot Footage raised $100 million from CAA, Greycroft, MarcyPen Capital Companions, Sony Footage Tv and ValueAct Capital Administration.
The brand new firm will give attention to making animated and live-action content material for YouTube with plans to evolve the initiatives into theatrically launched function movies. It has acquired the rights to Kay Thompson’s “Eloise on the Plaza,” the kids’s ebook sequence a few six-year-old who lives on the legendary New York Metropolis lodge.
“We are going to construct for a way youngsters truly uncover and join at the moment,” Robbins stated in a press release. “The chance couldn’t be extra clear to us, and the time is now. From reimagining timeless IP to discovering the daring, authentic concepts by rising creators, we are going to work with probably the most gifted artists to carry these tales to life.”
Different VC funding highlights for the interval embrace:
- Novig, a sports activities betting alternate that enables customers to commerce with no conventional bookmaker, which raised $75 million – bringing its complete capital to greater than $105 million
- “Heroes vs. Hordes” and “Baseball 26” writer Ares Interactivewhich raised $70 million
- Golf equipment Pokera web based poker web site, which raised $51.5 million
- Bluffa crypto betting startup, raised $21 million
M&A Offers: Warner Bros. Discovery- Paramount leads as largest deal by dimension
David Ellison’s pending $110 billion takeover of Warner Bros. Discoverywhich got here after Netflix shockingly pulled out, was the most important media M&A deal in PitchBook’s roundup.
Paramount pays $31 per share in money to amass 100% of WBD’s complete excellent shares. The transaction is funded by $47 billion in fairness, absolutely backed by the Ellison Household and RedBird Capital Companions, although it could embrace different strategic and monetary companions at closing. The deal additionally contains $54 billion of debt commitments from Financial institution of America, Citigroup and Apollo.
The deal will carry collectively streaming companies Paramount+, Pluto TV, BET+, HBO Max and Discovery+, dozens of linear networks like CBS, CNN, HBO, TNT, Comedy Central and MTV, and two of the 5 main movie studios underneath the identical roof. It’s anticipated to shut by Sept. 30, pending shareholder and regulatory approval.
Different offers embrace:
- Journey and media firm NextTrip’s acquisition of free ad-supported streaming community GoUSA TV for $350,000 in money and $350,000 in restricted widespread inventory
- Illinois-based SpoonRiver Media’s acquisition of native radio station 92.9/107.5 The Vibe for $70,000.
Leisure, software program and publishing offers:
Within the sector of leisure software program, publishing, media and data, Apollo World Administration led the way in which with a $6.2 billion buyout of the out-of-home promoting agency Clear Channel Outside Holdings.
Additionally notable was Mattel, which acquired full possession of the Mattel163 cellular video games studio after shopping for out NetEase’s 50% stake for $159 million. Since its inception in 2018, Mattel163 has launched 4 video games based mostly on Mattel IP — “Uno!,” “Uno Surprise,” “Part 10” and “Skip Bo” — with roughly 20 million month-to-month energetic customers and over 550 million downloads worldwide.
Rounding issues out have been Maven Fairness Companions and Trilogy Search Companions’ $85 million acquisition of e-mail, textual content and CRM options agency Message Digital and ETTS AI Funding’s $2.3 million acquisition of iPower Inc.’s World Product Advertising and marketing.
This report is a partnership between WrapPRO and PitchBook the go-to monetary information and software program platform that gives detailed data on non-public and public capital markets.
