Cineverse Acquires TV Monetization Platform IndiCue
Cineverse, a media technology company, has acquired IndiCue, a profitable monetization platform for connected television (CTV). The deal is described as transformational, expanding Cineverse's high-margin infrastructure for content distribution. The company projects the acquisition will help it reach $115-$120 million in revenue in fiscal year 2027.
- The acquisition is valued at $22 million in cash and stock, with the potential for an additional $18 million based on future performance milestones. To help fund the deal, Cineverse raised $13 million through the issuance of convertible notes to existing shareholders. - IndiCue was a rapidly growing startup, founded in 2023, that became profitable and is expected to generate about $38 million in revenue and $9.6 million in EBITDA in calendar year 2026. - IndiCue's co-founders, Nicholas Frazee (CEO), John N. Marchesini (COO), and Yuriy Gorokhov (CTO), have all joined Cineverse in executive roles under multi-year agreements. - This deal is part of a broader acquisition strategy for Cineverse, which recently also purchased global media services provider Giant Worldwide to integrate into its Matchpoint technology platform. - IndiCue's technology provides a complete advertising platform, including a white-labeled supply-side platform (SSP) and demand-side platform (DSP), giving publishers more direct control over their ad-tech stack. - The acquisition is intended to significantly strengthen Cineverse's Matchpoint platform, creating a more unified system for content distribution and monetization for streaming partners. - The connected TV (CTV) advertising market is experiencing significant growth, with U.S. ad spending reaching nearly $29 billion in 2024 and projected to grow to over $46 billion by 2029. This trend is driven by the shift in viewership from traditional linear TV to streaming services.
