Helios and Matheson is planning to spin off struggling film subscription service, MoviePass, into a separate company. The change will see a holding company created called MoviePass Entertainment Holdings. This will have shares of MoviePass, its film production, acquisition and distribution arms, and also listing service, Moviefone. Last week, news broke that Helios and Matheson was under investigation by the New York attorney general’s office over fraud concerns, which allege that the company misled investors. In the announcement, CEO Mitch Lowe said that he was “excited about our new company” but did not give any details on how it would work. However, the service has had issues throughout 2018, even temporarily going down after it ran out of money. Its parent company has invested heavily to maintain its survival.
Helios and Matheson is planning to spin off struggling film subscription service, MoviePass, into a separate company. The change will see a holding company created called MoviePass Entertainment Holdings. This will have shares of MoviePass, its film production, acquisition and distribution arms, and also listing service, Moviefone. In the announcement, CEO Mitch Lowe said that he was “excited about our new company” but did not give any details on how it would work. However, the service has had issues throughout 2018, even temporarily going down after it ran out of money. Its parent company has invested heavily to maintain its survival.