Cineverse Corp. (NASDAQ:CNVS) has agreed to acquire ad-tech firm IndiCue, Inc. in a move the company says will significantly strengthen its streaming monetization infrastructure and accelerate its shift toward becoming a full-scale technology platform for digital content distribution.
IndiCue, a profitable connected TV (CTV) advertising technology provider, will be integrated into Cineverse’s Matchpoint® platform, creating what the company describes as a unified system covering content preparation, distribution, monetization, analytics and real-time performance optimization across FAST, AVOD and broader ad-supported streaming environments.
Building a Closed-Loop Streaming System
With IndiCue’s technology, Cineverse moves beyond traditional content distribution and reporting into active revenue optimization. The combined platform will enable real-time adjustments to ad performance based on viewer behavior and market demand.
“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,” said Chairman and CEO Chris McGurk.
He added, “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.”
IndiCue’s Scale and Financial Profile
Founded in 2023, IndiCue provides an integrated CTV ad-tech stack, including ad serving, supply-side and demand-side platforms, and server-side ad insertion. The company currently has more than 40 live clients and another 75 publishers onboarding.
IndiCue is projected to generate approximately $38 million in revenue and $9.6 million in EBITDA in calendar 2026, representing an EBITDA margin of about 25%. Cineverse expects the business to be immediately accretive.
Financial Outlook
Following the transaction, Cineverse projects:
- Fiscal 2027 revenue of $115–$120 million, with technology platforms contributing more than half of total revenue
- Adjusted EBITDA of $10–$20 million in Fiscal 2027
- Approximately $38 million in annualized revenue contribution from IndiCue starting April 1, 2026
The company said IndiCue’s transaction-based revenue model provides scalable, recurring infrastructure income tied to CTV advertising volume rather than traditional software licensing.
Strategic Rationale
The acquisition is designed to complete Cineverse’s end-to-end platform strategy, unifying distribution, data and monetization within a single white-label solution. Management believes this will help streaming operators reduce vendor complexity and centralize accountability across content delivery and ad revenue operations.
“For years, we’ve focused on building advanced, next-generation infrastructure designed to scale the highly complex task of digital video distribution,” said Erick Opeka, President and Chief Strategy Officer of Cineverse. “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.”
Nicholas Frazee, CEO of IndiCue and now EVP of Revenue at Cineverse, said: “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.”
Transaction Details
The deal includes up to $40 million in total potential consideration, consisting of $22 million in base consideration and up to $18 million tied to performance milestones. Cineverse also raised $13 million in convertible notes to support the acquisition and working capital needs, with participation from existing long-term shareholders.
IndiCue’s senior leadership team will join Cineverse under multi-year agreements, strengthening the company’s expertise in CTV advertising technology, distribution and monetization.
More about Cineverse
Cineverse is an entertainment technology company that combines proprietary streaming infrastructure with studio operations. Its Matchpoint® platform helps studios and streaming operators prepare, distribute and monetize content across fragmented digital environments, while the company also distributes more than 71,000 titles across theatrical, home entertainment and streaming channels.