Cineverse has scaled back its involvement in a microdrama venture launched last year with former ABC executive Lloyd Braun.
The company shifted its role from equal partner to passive minority stakeholder in the entity known as Twist. CFO Sean McCabe disclosed the change during the fiscal fourth-quarter earnings call on Friday.
McCabe noted that Twist is already creating traction with Paramount and other potential partners. CEO Chris McGurk said the decision followed heavy spending by larger competitors, particularly in Asia.
Cineverse reported quarterly revenue of $26 million, up 67 percent from a year earlier. Shares rose nearly 18 percent to $3.15 after the results.