Cineverse Acquires Giant Worldwide; No Financial Terms Of Transaction Disclosed; Projects Acquisition To Contribute Pro Forma Revenue Of $15M-$17M And $3.5M-$4M EBITDA For FY27

Acquisition Brings Giant's Existing Clients – Including the World's Top Movie Studios, Networks and Leading Entertainment Companies – to Cineverse's Matchpoint™ Ecosystem

LOS ANGELES, Jan. 7, 2026 /PRNewswire/ -- Cineverse (NASDAQ:CNVS), a next-generation entertainment studio, today announced the acquisition of Giant Worldwide, a global media services provider serving the world's leading Hollywood studios and streaming platforms.

Thanks to this strategic acquisition, Matchpoint™—the Company's award-winning, AI-powered media supply chain solution—solidifies its role as the leader in the automated media supply chain area, in a fragmented $25+ billion post-production and media services market.

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.

A Transformative Acquisition for the Matchpoint™ Platform

Giant Worldwide brings to Matchpoint™ an established global services footprint spanning Los Angeles, New York, and Warsaw, along with deep operational expertise in digital delivery fulfillment, Master QC, content localization, and OTT content testing along with highly-coveted Preferred Vendor Services badges for the leading streaming platforms. Critically, the acquisition delivers a diversified base of recurring revenue from trusted, long-standing relationships as an approved vendor amongst a very short list for an unparalleled client roster that includes four major Hollywood studios, the top independent film distributors and leading industry streaming platforms.

Many of these relationships can now be expanded via Matchpoint™, which aims to supplement expensive, labor-intensive video content processes with fully automated, AI-driven workflows. The integration will enable Giant Worldwide's major Hollywood studio and streaming platform clients to benefit from Matchpoint's proven automation and integrated AI capabilities—including automated ingest, frame-by-frame AI-based Video/Audio QC, AI-generated enhanced metadata enrichment, fully transparent automated mastering workflow, and machine learning-driven delivery optimization—to reduce costs, eliminate human error, and effortlessly scale content distribution to all leading video streaming platforms.

"This acquisition represents a pivotal moment for Matchpoint and for the media services industry," said Tony Huidor, President of Technology & Chief Product Officer at Cineverse. "We are immediately adding a significant base of prestigious Hollywood studio relationships by combining Giant Worldwide's long-standing client relationships with Matchpoint's advanced AI-native infrastructure. The result is something the industry has never seen: a platform aided by artificial intelligence that can ingest, normalize, enrich, and deliver large studio film libraries across hundreds of endpoints with minimal manual intervention."

Capturing a Structural Market Opportunity

The global post-production and media services market is projected to reach $74 billion by 2034, growing at a CAGR of over 11%, according to Market.us -- driven by the explosive growth of streaming platforms, FAST channels, and global OTT distribution. Yet despite this growth, the industry remains structurally fragmented and operationally constrained—with the bulk of media services still executed through manual, human-centric workflows that lead to inconsistent quality, slow delivery cycles, and low margins. AI adoption in content creation and marketing has accelerated rapidly, but AI and automation in supply chain tasks—technical QC, metadata enrichment, ad break creation, graphic transformation, content compliance, and packaging—remains significantly underpenetrated, despite these being highly repeatable through sophisticated orchestration processes ideally suited for artificial intelligence.

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 (TVOD) distribution platforms with a highly scalable media processing infrastructure
  
  
  
   
• MPA-certified (Motion Picture Association) 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

Pro Forma Financial Guidance

Cineverse expects Giant Worldwide to contribute pro forma revenue of $15-17 million and pro forma EBITDA of $3.5-$4 million 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 $2.5 million 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.