Cineverse announced it has acquired IndiCue, a profitable advertising technology platform focused on connected TV monetization, in a deal valued at up to $40 million. The transaction marks a significant milestone in Cineverse’s evolution into a streaming infrastructure company, expanding its high-margin technology revenue and strengthening its end-to-end content distribution and monetization capabilities.
The acquisition integrates IndiCue’s ad serving and monetization infrastructure directly into Cineverse’s Matchpoint platform, creating a unified system spanning content preparation, distribution, monetization, reporting, and real-time performance optimization across FAST, AVOD, connected TV, and other ad-supported streaming environments. With the addition of IndiCue, Cineverse gains the ability to dynamically optimize advertising revenue in real time based on viewer behavior and market demand.
The deal follows Cineverse’s previously announced acquisition of Giant Worldwide and advances the company’s strategy of acquiring recurring revenue businesses at attractive valuations and scaling them through automation and system-level optimization.
IndiCue, founded in 2023, operates a proprietary connected TV monetization platform that provides publishers and streaming operators with ad-serving, supply-side platform, demand-side platform, and server-side ad-insertion capabilities. Built on high-performance bare-metal infrastructure, the platform is designed to deliver low operating costs, speed, reliability, and scalability.
The company has scaled to more than 40 live clients, with 75 additional publishers onboarding. Its customer base includes major media companies such as IMAX and Loop Media, along with numerous independent FAST and AVOD platforms. IndiCue is expected to generate approximately $38 million in revenue and $9.6 million in EBITDA in calendar year 2026, representing a 25% EBITDA margin and immediate accretion at close.
Cineverse said the acquisition establishes a clear path to $115 million to $120 million in revenue and $10 million to $20 million in adjusted EBITDA in fiscal year 2027, beginning April 1, 2026. Technology platforms are expected to account for more than 50% of total revenue in that period. IndiCue’s infrastructure-driven revenue model scales with advertising transaction volume across the CTV ecosystem, supporting recurring revenue characteristics.
Strategically, the addition of IndiCue completes a key component of Cineverse’s platform vision by connecting distribution, data, and monetization into a single execution layer. The company said the combined platform provides real-time analytics visibility and automated workflows required by FAST channels, AVOD services, and independent streaming operators competing in the ad-supported streaming market. Cineverse also positioned the combined offering as an independent, full-stack white-label solution unifying content delivery and ad monetization for studios and streaming operators seeking to reduce vendor complexity.
The acquisition was financed through a mix of cash, deferred consideration, and performance-based earnouts, with total potential consideration of up to $40 million, including $22 million in base consideration and up to $18 million tied to future milestones. Concurrently, Cineverse raised $13 million in convertible notes from existing long-term shareholders to support the transaction and working capital needs.
As part of the integration, IndiCue’s founding team and senior leadership have joined Cineverse under multi-year employment and retention agreements. Nicholas Frazee has been appointed EVP of Revenue, Yuriy Gorokhov as EVP of Technology, and John Marchesini as EVP of Product & Monetization, combining expertise across CTV advertising technology, data, distribution, and content operations.
KEY QUOTES:
“This represents a key leap forward for Cineverse, with IndiCue adding a strategically important monetization component that, when combined with our existing Matchpoint platform suite, gives us a near end-to-end technology platform whose high level of automation provides a significant competitive advantage by dramatically lowering costs while providing higher operational efficiency than any competitor out there. The acquisitions of IndiCue and Giant Worldwide have largely completed our strategy to build a comprehensive, scalable infrastructure solution for the entertainment industry, and transform our company, which – alongside our studio operations – is now in position to thrive, with a strong balance sheet and high-growth recurring revenue, margin and income profile. IndiCue strengthens the execution layer of our business, adding profitable, recurring monetization infrastructure that scales as volume and complexity increase across the streaming ecosystem.”
Chris McGurk, Chairman and CEO, Cineverse Corp.
“For years, we’ve focused on building advanced, next-generation infrastructure designed to scale the highly complex task of digital video distribution. With IndiCue, Matchpoint becomes a closed loop: distribution, data, and monetization working together as a single system. This gives us a powerful feedback engine that allows us to understand performance in real time and act on it, improving results for our own content and for some of the largest media companies in the world.”
Erick Opeka, President and Chief Strategy Officer, Cineverse Corp.
“IndiCue was built to improve content monetization and allow programmatic advertising to perform far more efficiently in complex, fragmented environments. Joining Cineverse allows us to integrate our advanced monetization capabilities directly into an enterprise-grade platform that powers content distribution at significant scale. We are now in the unique position of controlling the entire content and ad pipeline from end-to-end. In addition, as an established ad platform and now first-party publisher, we can be nimble and leverage our complementary industry expertise to focus on building next-generation technology that will define the future of advertising.”
Nicholas Frazee, Chief Executive Officer, IndiCue and EVP of Revenue, Cineverse Corp.
