Cineverse Acquires IndiCue for $22 Million and Issues Convertible Notes

Written by Emily J. Thompson, Senior Investment Analyst

Source: PRnewswire

Updated: 1h ago

0mins

CNVS+12.43%

Should l Buy CNVS?

Source: PRnewswire

Acquisition Agreement: Cineverse Corp. signed an agreement on February 12, 2026, to acquire IndiCue for $22 million in cash and stock, with the deal expected to close on February 13, 2026, aimed at enhancing its advertising revenue management capabilities and strengthening market competitiveness.
Financing Strategy: On the same day, Cineverse agreed to issue $13 million in convertible notes to certain investors, with a 9% annual interest rate and a four-year term, intending to use part of the proceeds for the IndiCue acquisition and working capital, thereby optimizing its financial structure.
Platform Integration: IndiCue, as a proprietary CTV monetization platform, will provide Cineverse with the technological infrastructure to help publishers and streaming operators manage and optimize advertising revenue, which is expected to drive growth in the rapidly evolving streaming market.
Market Positioning: Cineverse aims to leverage its Matchpoint® technology ecosystem to drive content preparation, distribution, and monetization, and with the acquisition of IndiCue, it is expected to further solidify its leadership in the entertainment technology sector and enhance operational efficiency in a fragmented content distribution environment.

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Analyst Views on CNVS

Wall Street analysts forecast CNVS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CNVS is 7.50 USD with a low forecast of 6.00 USD and a high forecast of 9.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

2 Analyst Rating

2 Buy

0 Hold

0 Sell

Moderate Buy

Current: 1.850

Low

6.00

Averages

7.50

High

9.00

Current: 1.850

Low

6.00

Averages

7.50

High

9.00

Benchmark

Daniel Kurnos

Speculative Buy

maintain

$10 -> $9

2025-10-24

Reason

Benchmark

Daniel Kurnos

Price Target

$10 -> $9

AI Analysis

2025-10-24

maintain

Speculative Buy

Reason

Benchmark analyst Daniel Kurnos lowered the firm's price target on Cineverse to $9 from $10 and keeps a Speculative Buy rating on the shares. While the firm had been hopeful that the next slate of films that Cineverse had cheaply acquired to follow their new blueprint would aggregate to the same level of revenue and profitability as Terrifier 3, "the bar was just set too high," the analyst tells investors. The firm is using the quarter as an opportunity to reset expectations for Cineverse this year, bringing its EBITDA forecast in by $5M, the analyst noted.

Alliance Global Partners

Buy

maintain

$7 -> $9

2025-06-27

Reason

Alliance Global Partners

Price Target

$7 -> $9

2025-06-27

maintain

Buy

Reason

Alliance Global Partners raised the firm's price target on Cineverse to $9 from $7 and keeps a Buy rating on the shares following Q4 results. A majority of the increase in revenue was driven by the ancillary revenues generated by Terrifier 3, which became the highest-grossing non-rated film ever, according to the firm. Cineverse is taking advantage of the success of Terrifier 3 and has built a consistent slate of movies for box office release, Alliance Global Partners told investors in a research note.

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About CNVS

Cineverse Corp. is a global streaming technology and entertainment company. The Company's business is operating as a portfolio of owned and operated streaming channels; a global aggregator and full-service distributor of feature films and television programs, and a technology software-as-a-service platform for over-the-top app development and content distribution through subscription video on demand (SVOD), dedicated ad-supported (AVOD), ad-supported streaming linear (FAST) channels, social video streaming services, and audio podcasts. Its streaming channels reach audiences in several distinct ways: direct-to-consumer, through these major application platforms, and through third party distributors of content on platforms. The Company's streaming technology platform, known as Matchpoint, is a software-based streaming operating platform which provides clients with AVOD, SVOD, transactional video on demand (TVOD) and linear capabilities, automates the distribution of content, and others.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

Cineverse Proposes Underwritten Public Offering of Shares

35 minutes agoPRnewswire

Public Offering Announcement: Cineverse Corp. has announced a proposed underwritten public offering of its Class A common stock, with the size yet to be determined and subject to market conditions, indicating the company's proactive approach in capital markets.
Underwriter Arrangement: The offering will be solely underwritten by The Benchmark Company, LLC, which will also receive a 30-day option to purchase an additional 15% of shares, potentially enhancing market appeal and investor interest.
Registration Statement Validity: The S-3 registration statement filed by Cineverse on January 25, 2024, has been approved by the SEC, providing a legal foundation for the offering and ensuring compliance with regulatory requirements.
Future Outlook: Through its Matchpoint® technology ecosystem, Cineverse aims to drive content distribution and monetization, showcasing its innovative capabilities and competitive edge in the entertainment industry.

Cineverse Proposes Underwritten Public Offering of Class A Shares

51 minutes agoNewsfilter

Public Offering Announcement: Cineverse Corp. has announced a proposed underwritten public offering of its Class A common stock, which is expected to provide additional funding to support its technology and content development, although specific terms and timing remain uncertain.
Underwriter Arrangement: The offering will be underwritten by The Benchmark Company, LLC, which plans to grant the underwriter a 30-day option to purchase an additional 15% of shares, enhancing market flexibility and potential capital raise.
Registration Statement Validity: The S-3 registration statement related to the offering became effective on January 25, 2024, ensuring that the company can efficiently access capital markets in the future, thereby improving financing efficiency.
Technology-Driven Strategy: Cineverse's core business, Matchpoint®, leverages AI technology to optimize content preparation, distribution, and monetization, aiming to enhance the company's market position and operational efficiency in the highly competitive entertainment industry.

Cineverse to Acquire IndiCue for $22 Million in Cash and Stock

1 hour agoseekingalpha

Acquisition Agreement: Cineverse announced the signing of an agreement to acquire IndiCue for $22 million in cash and stock, with the transaction expected to close around February 13, 2026, thereby expanding its market share in the digital advertising sector.
Convertible Notes Issuance: Cineverse also agreed to issue $13 million in convertible notes to certain investors, with a four-year term and a 9% annual interest rate, which will partially fund the IndiCue acquisition while enhancing the company's capital structure.
Funding Utilization Plan: The net proceeds from the convertible notes will be used to cover the purchase price of IndiCue and for working capital, demonstrating Cineverse's strategic intent to expand its business and optimize its financial position.
Stock Price Reaction: Following the announcement, Cineverse's stock fell 8.1% in after-hours trading to $1.91, reflecting market caution regarding the acquisition and financing arrangements.