The MoviePass saga continues.
MoviePass parent company Helios and Matheson Analytics (HMNY) announced on Tuesday plans to spin off the ailing movie-subscription company into a new, publicly traded corporation called MoviePass Entertainment. The move would effectively allow HMNY to offload its entertainment-related properties. And in an odd twist, HMNY added that its public perception might be in better shape by shedding MoviePass.
“Since we acquired control of MoviePass in December 2017, HMNY largely has become synonymous with MoviePass in the public’s eye, leading us to believe that our shareholders and the market perception of HMNY might benefit from separating our movie-related assets from the rest of our company,” HMNY CEO Ted Farnsworth said in a statement.
The newly formed company would include HMNY’s interest in MoviePass, the MoviePass Films movie production company, film buying arm MoviePass Ventures, and Moviefone, the company’s media information and advertising offering.
HMNY would continue on as an IT services company and focus its efforts on data analytics.
The move would also add another chapter to the MoviePass saga.
MoviePass centers its business on providing a monthly subscription service for more affordably watching movies in theaters. But as time has gone on, the company has been unable to keep its business afloat, due to high costs and a business model that hasn’t sustained its operation. It’s been forced to change its pricing and strategy to address those problems, but still appears to be in difficult shape.
It’s unclear how being spun off will address MoviePass’ problems. HMNY said that it believes the new company will allow for a “sharper market focus.”
HMNY’s board approved the spinoff, but now the company needs to get regulatory approval. If that’s achieved, MoviePass Entertainment would be listed on the NASDAQ, according to HMNY.