Who Will Get MoviePass Assets If It Goes Out Of Business?

By Douglas A. McIntyre Updated Jan 11, 9:30PM EST · Published Jul 4, 6:50AM EDT

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Who Will Get MoviePass Assets If It Goes Out Of Business? — © mobili / Flickr

Things at movie ticket sales agent MoviePass has been sick, financially, and based on a new SEC filing will probably get worse, if that is possible. Despite some success it has had getting subscribers, it may run out of money soon. That leaves open who the possible buyers of its assets might be.

Parent Helios and Matheson Analytics (NASDAQ: HMNY) recently filed to raise over $1 billion. The company reported:

Helios and Matheson Analytics Inc. announced that it has filed a universal shelf registration statement on Form S-3 with the Securities and Exchange Commission (the “SEC”). Under the shelf registration statement, once the SEC declares it effective, HMNY may offer and sell, from time to time, up to $1.2 billion of a variety of its equity and debt securities over a period of three years.

Under the shelf registration statement, HMNY will have the flexibility to publicly offer and sell from time to time common stock, preferred stock, debt securities, warrants, subscription rights, units or any combination of such securities. HMNY may periodically offer one or more of these securities in amounts, at prices and on terms announced, if and when the securities are ever offered. The specific terms of any potential future offerings, along with the intended use of proceeds of any such securities offered by HMNY, will be described in a prospectus supplement at the time of any such offering.

MoviePass has over 3 million subscribers, but its marketing and operation costs have been huge. HMNY shares have dropped 97% to $.21 this year, a clear sign that the market doubts whether the company is viable.

Theater giant AMC might want the MoviePass subscriber base, although it could involve selling tickets for competitive chains Its new Stubs A-List allows people to watch three movies a month in AMC theaters for $19.95. When it was launched, it dealt another blow to MoviePass’s prospects. Fandango, which is an online ticket seller has also launched its own service. It could be a buyer of the MoviePass subscriber base, and brand, as well. There are several other nice movie ticket sales membership companies. AMC and Fandango are probably the most likely buyers because of their size and brands. And the assets would be sold cheaply if there bankruptcy.

About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.