What’s Going on with MoviePass?
MoviePass’s parent company Helios, and Matheson (HMNY) has taken a beating in the stock market as the negative articles, stock bashing, and short selling continued last week. MoviePass CEO, Mitch Lowe said that the company spends about 21.7 million per month and only has 15.5 million dollars in cash remaining, but something doesn’t make sense.
Verizon Is The Second Largest Shareholder!
A few weeks back, Verizon Wireless purchased 9.6% of outstanding shares in HMNY making them the second highest shareholder next to Helios, and Matheson CEO, Theodore Farnsworth. Earlier in April, HMNY also purchased Moviefone for $8.6 million dollars.
Why Buy Moviefone?
Moviefone has about 7 million users which MoviePass can now acquire, but I haven’t seen any signs of ownership or affiliation with MoviePass on the Moviefone website. If MoviePass could gain at least 4.5 million new subscribers from Moviefone’s 7 million users, it would bring them close to 6-7 million subscribers in the next 6 months.
MoviePass And AMC
MoviePass is trying to come to an agreement with AMC theaters. MoviePass generated an extra $2 million in business for AMC every week since AMC decided to add MoviePass’s subscription service to a few of their most popular theaters. According to the executives at MoviePass, they simply want a percentage of AMC sales, but AMC CEO Adam Aron has yet to budge on the agreement. Aron also states that MoviePass’s business model “unsustainable”, which is one of his biggest issues with the company.