Monday, October 21, 2019

MoviePass is shutting down tomorrow, parent company hopes to find a buyer

“Get clients now, fear about earning money later” is a prevailing mindset for tech startups. Generally that works, and generally you get a MoviePass. After MoviePass minimize its all-you-can-watch movie show subscription service to a tantalizing $9.95/month, it by no means fairly managed to carve out sufficient of a revenue to really proceed working, and now the service is shutting down fully.

Helios and Matheson Analytics, the proprietor of MoviePass, put out a press launch explaining that the public-facing service is shutting down tomorrow (September 14th) whereas the corporate appears to be like for “a sale of the Firm in its entirety, a sale of considerably all the Firm’s property together with MoviePass, Moviefone and MoviePass Movies, a enterprise reorganization or a number of different extraordinary company transactions.”

MoviePass has been a blazing dumpster fireplace for the previous yr. After the subscription service dropped to $9.95/mo, then $6.95/mo, the mum or dad firm reverse-split its shares (which brought on them to fall in worth by 40%), could not preserve its personal lights on, minimize the choice of motion pictures you would watch with the subscription, restricted the subscription to simply three motion pictures a month, and eventually tried to unload MoviePass fully. The corporate’s inventory worth is now $0.0018 per share, in comparison with $5,100 in October 2017 (making an allowance for the post-split worth).

*moist fart sounds*

Whereas Helios and Matheson Analytics tries desperately to search out somebody to dump the stays of MoviePass to, its major competitor Sinemia isn’t any extra (not less than in the US), and theater-created companies like AMC A-Listing provide a number of the advantages MoviePass tried to incorporate.

MoviePass
MoviePass

NEW YORK–(BUSINESS WIRE)–Helios and Matheson Analytics Inc. (the “Firm” or “HMNY”) right this moment introduced that its board of administrators has shaped a strategic overview committee (the “Committee”), composed fully of the Firm’s unbiased administrators, to establish, overview and discover all strategic and monetary alternate options for the Firm, together with a sale of the Firm in its entirety, a sale of considerably all the Firm’s property together with MoviePass™, Moviefone™ and MoviePass Movies™, a enterprise reorganization or a number of different extraordinary company transactions, along with the idea or settlement of the Firm’s liabilities in reference to any of those alternate options. The Firm requests that each one bona fide transaction proposals and expressions of curiosity be directed to the Committee at S[email protected]. There will be no assurance that the Committee’s overview course of will end in any transaction.

As well as, on September 13, 2019, MoviePass™ notified its subscribers that it will be interrupting the MoviePass™ service for all its subscribers efficient September 14, 2019, as a result of its efforts to recapitalize MoviePass™ haven’t been profitable so far. The Firm is unable to foretell if or when the MoviePass™ service will proceed. The Firm is continuous its efforts to hunt financing to fund its operations. There will be no assurance that any such financing will probably be obtained or obtainable on phrases acceptable to the Committee.

About Helios and Matheson Analytics Inc.

Helios and Matheson Analytics Inc. presently owns roughly 92% of the excellent shares (excluding choices and warrants) of MoviePass Inc., 100% of the excellent membership pursuits in MoviePass Ventures LLC, 51% of the excellent membership pursuits in MoviePass Movies LLC, and the Moviefone™ model and repair. HMNY’s holdings additionally embrace Zone Applied sciences, Inc., creator of RedZone Map™, a security and navigation app for iOS and Android customers. HMNY is headquartered in New York, NY. For extra info, go to us at www.hmny.com.

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