DJ MoviePass Parent Helios to Explore Options
By Josh Beckerman
MoviePass parent Helios & Matheson Analytics Inc. (HMNY) plans to "explore all strategic alternatives," including a sale.
Helios said efforts to recapitalize MoviePass haven't been successful to date.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
September 13, 2019 15:56 ET (19:56 GMT)
DJ MoviePass to Halt as Parent Explores Possible Sale -- 3rd Update
By Josh Beckerman
MoviePass parent Helios & Matheson Analytics Inc. (HMNY) plans to "explore all strategic and financial alternatives," including a sale or reorganization, and said MoviePass would stop service, effective Saturday.
In July, MoviePass said it would temporarily interrupt service as it improved its mobile app. Service for some customers had resumed.
Helios said it was "unable to predict if or when" MoviePass would continue, and said efforts to recapitalize MoviePass hadn't been successful.
While MoviePass rapidly gained customers, it faced complaints about changes in its subscription plans and concern about its business model. Meanwhile, Helios has posted net losses and delayed financial filings as it dealt with accounting errors.
MoviePass reached 3 million subscribers in June 2018. A "MoviePass Progress Report" in August of last year said the plan "became a boon to a declining industry."
Helios shares have been trading below one cent. Following a 1-for-250 reverse split in 2018, the price rose to about $22.50, but a few days later fell below $1. A plan for another reverse split was called off due to lack of shareholder support.
Mitch Lowe, a former Netflix Inc. (NFLX) executive and RedBox president, has been CEO of MoviePass since June 2016. Helios bought a majority stake in MoviePass in 2017.
Movie chains have pursued their own subscription plans, including AMC Entertainment Holdings Inc.'s (AMC) 2018 launch of AMC Stubs A-List.
In a Friday letter to customers, MoviePass said that in August 2017 it "began a transformation of the moviegoing industry by introducing its low monthly price subscription service. Since then, others in the industry have followed our lead."
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
September 13, 2019 18:36 ET (22:36 GMT)
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