Cineverse Acquires Giant Worldwide, Expects $15-17M Revenue in 2027

Cineverse announced the acquisition of Giant Worldwide, a global media services provider serving Hollywood studios and streaming platforms. The company said, "The transaction adds a substantial base of recurring revenue from major entertainment companies to Cineverse's Matchpoint platform and will play a key role in how it powers the future of content distribution through automation and AI-driven technology.Matchpoint's guiding thesis is that this market is undergoing the same transformation that enterprise IT and advertising operations experienced a decade ago: a shift from labor-led services to AI-powered, platform-led workflows, with value accruing to scaled, AI-native orchestration platforms that can deliver recurring revenue at highly attractive software margins. The acquisition of Giant Worldwide accelerates this strategy by combining: Global QC and fulfillment operations with teams across multiple continents; Matchpoint's AI-powered automation platform capable of ingesting and mastering up to 15,000+ titles per month with a team of just 15 people; AI-driven workflow orchestration that delivers 60-70% efficiency gains and enables software-like gross margins of 70-80%; Approved vendor status for the two largest, most stringent transactional distribution platforms with a highly scalable media processing infrastructure; MPA-certified media processing facilities that meet Hollywood studio's stringent security requirements for handling high-value new film releases with a highly trained staff capable of meeting these highly-sensitive delivery requirements." Cineverse expects Giant Worldwide to contribute pro forma revenue of $15-17M and pro forma EBITDA of $3.5-$4M in fiscal year 2027. The majority of this revenue is recurring in nature, derived from ongoing service relationships with major Hollywood studio and streaming platform clients. Within the first year the Company anticipates approximately $2.5M in additional annualized synergies through integration with Matchpoint. The Company believes these projections are conservative, as management anticipates this acquisition will provide immediate market validation that spurs strong synergies with a significant base of additional customers who will transition recurring business to the Matchpoint platform away from legacy, human-dependent competitors to benefit from the superior economics and advanced AI-powered capabilities of Matchpoint's machine-based workflow. The all-cash transaction is immediately accretive to Cineverse and was structured to be highly capital-efficient, requiring minimal upfront investment while delivering significant recurring services revenue and EBITDA contribution within the current fiscal year. The acquisition is further de-risked by positioning Cineverse to leverage Giant Worldwide's established, long-standing relationships with major studio clients to accelerate the growth of the complementary Matchpoint SaaS business. The business generates positive EBITDA with a diversified, established customer base, providing Cineverse with a strong foundation for margin expansion through Matchpoint's AI-powered integration.