Key Points
- Cineverse acquired ad tech firm IndiCue for $40 million, integrating its monetization tools into the Matchpoint platform across FAST and AVOD services.
- IndiCue is projected to generate $38 million in 2026 revenue and $9.6 million in EBITDA, with the deal immediately accretive and EBITDA-positive at closing.
- Cineverse forecasts fiscal 2027 revenue of $115 million to $120 million, with technology platforms contributing over 50 percent of total revenue.
Cineverse has acquired streaming-focused advertising technology company Indicue in a deal valued at $40 million, the companies affirmed on Friday.
The acquisition integrates IndiCue’s connected TV monetization capabilities into Cineverse’s Matchpoint platform, expanding the system to cover content preparation, distribution, monetization, reporting and real-time performance optimization across FAST, AVOD and other ad-supported streaming environments.
IndiCue’s founding team has joined Cineverse under multi-year agreements, with Nicholas Frazee appointed as Executive Vice President of Revenue, Yuriy Gorokhov as Executive Vice President of Technology and John Marchesini as Executive Vice President of Product and Monetization.
Cineverse said the addition allows it to move beyond distribution and reporting to actively optimize advertising revenue in real time, responding dynamically to viewer behavior and market demand. The transaction follows the company’s recent acquisition of Giant Worldwide and, executives said, largely completes its strategy to build a comprehensive infrastructure layer spanning distribution, data and monetization.
“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,” Chris McGurk, the Chairman and CEO of Cineverse, said in a statement on Friday.
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Founded in 2023, IndiCue operates a full ad tech stack that includes ad serving, a supply-side platform, demand-side platform and server-side ad insertion built on bare metal infrastructure. The company has more than 40 live clients and 75 additional publishers onboarding, including IMAX, Freecast, Cannella Media, Loop Media, KTSF and Dial Up Media.
Cineverse expects IndiCue to generate approximately $38 million in revenue and $9.6 million in EBITDA in calendar year 2026, reflecting a 25 percent EBITDA margin. The company said IndiCue will be EBITDA-positive at closing and immediately accretive, with annualized revenue contributions beginning in fiscal year 2027, which starts April 1, 2026.
Looking ahead, Cineverse projects fiscal year 2027 revenue of $115 million to $120 million, with technology platforms accounting for more than 50 percent of total revenue. Adjusted EBITDA is expected to range between $10 million and $20 million in fiscal 2027, driven by recurring technology revenue and expanding operating leverage.
Erick Opeka, the President and Chief Strategy Officer of Cineverse, said the combined platform creates a closed-loop system linking distribution, data and monetization.
“With IndiCue, Matchpoint becomes a closed loop: distribution, data, and monetization working together as a single system,” Opeka said on Friday. “This gives us a powerful feedback engine that allows us to understand performance in real time and act on it.”
The deal was financed through a combination of cash, deferred consideration and performance-based earnouts, with $22 million in base consideration and up to $18 million tied to future milestones. Concurrent with closing, Cineverse raised $13 million in convertible notes from existing shareholders to fund the transaction and support working capital.
