MoviePass' ongoing implosion has always been very public, so somehow it makes sense that its parent company issued a press release to announce its plans to formally distance itself from the failing movie subscription service. Helios and Matheson Analytics (HMNY), which focuses primarily on data analysis, stated that it plans to spin out MoviePass and some associated holdings into an independent company in order separate the movie services' brand from its own.
"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 wrote in the release.
Which is more or less the business equivalent of saying "we hate MoviePass too."
The new plan is to create one single, publicly traded company called MoviePass Entertainment out of MoviePass, MoviePass Films (the service's production arm), MoviePass Ventures (its acquisition and distribution arm), and Moviefone, a media information and advertising service. Additionally, the company plans to distribute some outstanding shares of MoviePass Entertainment as a dividend to HMNY shareholders, if it's legally allowed.
But let's not forget that, while MoviePass is indeed the worst (adjusting prices and perks multiple times over the past year etc.), HMNY doesn't necessarily deserve to escape unscathed from this shameful spiral. The company is currently under investigation by the New York attorney general's office over whether the company misled investors regarding its financials.
Alternate title: MoviePass parent company attempts to cancel its subscription