Cineverse Acquires TV Monetization Platform

- The total purchase price for IndiCue is $22 million, consisting of $12.8 million in cash at closing and $9.2 million in cash or stock to be paid after one year. To help fund the acquisition, Cineverse raised $13 million through the sale of 9% convertible notes with a four-year term. - IndiCue's technology is designed to give streaming platforms and media owners more control over their CTV advertising through server-side ad insertion (SSAI), which allows for customized ad experiences based on viewing patterns. This is intended to increase ad revenue and improve the user experience. - In 2024, IndiCue generated $10.2 million in revenue with a net income of $1.8 million. Cineverse projects that the acquisition will contribute approximately $38 million in annualized revenue starting in fiscal year 2027. - This acquisition is part of Cineverse's broader strategy to build a comprehensive, scalable technology infrastructure for content monetization, following its recent purchase of Giant Worldwide in January. The goal is to create an end-to-end platform that lowers costs and increases operational efficiency for content distributors. - Key members of IndiCue's leadership team will join Cineverse in new roles. Nicholas Frazee has been appointed EVP of Revenue, Yuriy Gorokhov is the new EVP of Technology, and John Marchesini will serve as EVP of Product & Monetization. - Cineverse's Chairman and CEO is Chris McGurk. In conjunction with the acquisition, McGurk and other key executives participated in a $3 million public offering of the company's stock. - For the fiscal third quarter ending December 31, 2025, Cineverse anticipated unaudited revenue between $15 and $17 million and a net loss of $0.5 to $1.0 million, with an adjusted EBITDA of approximately $2.0 to $3.0 million.