MoviePass’ Parent Company Is Reportedly Under Investigation By New York’s Attorney General
For much of 2018, the news has not been good for MoviePass, the (formerly) unlimited-movies-in-theaters service. First, they ditched their signature one movie a day for ten bucks a month plan. Then there were several (more than one!) cases where they made cancelation extremely difficult for their subscribers. Then they instituted a rotating list of movies you could watch, which changes daily. Oh, also their stockholders sued them. If only there was a Mad Men GIF to sum up this scenario.
The latest story about MoviePass isn’t great either, Bob. According to CNBC, the New York State Attorney General has opened a “probe into MoviePass’ parent company, Helios and Matheson” to look into the possibility they mislead investors:
The attorney general's office is investigating whether the company mislead the investment community regarding the company's financials, the source said. The investigation is in the early stages. The attorney general is using the Martin Act, a statute designed to protect New York investors.
As I type these words, Helios and Matheson stock is currently trading at two cents a share. And yesterday, Business Insider reported the company had delayed a stockholder meeting about a potential 1-for-500 reverse stock split. The company already executed a 1-for-250 stock split in August in an effort to remain listed on the Nasdaq stock exchange. The stock price did rise, then dipped back down to its current levels. So I guess now is a good time to get in on the ground floor, so to speak.
I harbor no ill will against MoviePass. (Maybe I would if I was an investor, but I am not.) They have proven there is an enormous audience for a product like theirs, though perhaps not at a price high enough to sustain itself. Just as quickly as they became a household word, they flamed out. Someday, there could be a fascinating movie about all this. Regrettably, I think you will have to pay full admission price to see it.