MoviePass is shutting down

MoviePass will shut down Saturday, September 14, its parent company Helios and Matheson Analytics announced Friday.

Helios and Matheson said efforts to recapitalize the movie-ticket subscription service "have not been successful to date."

MoviePass surged in popularity in 2017 after Helios and Matheson bought the service and drastically lowered the price. But it burned through hundreds of millions of dollars and failed to find a business model that didn't lead to massive losses. In February, Helios and Matheson was delisted from the Nasdaq composite after trading below $1 for months.

MoviePass, along with Moviefone and MoviePass Films, which are all owned by Helios and Matheson, will be up for sale, the company said Friday.

Helios and Matheson's "board of directors has formed a strategic review committee, composed entirely of the company's independent directors, to identify, review and explore all strategic and financial alternatives for the company, including a sale of the company in its entirety," the company said.

Helios and Matheson said it was "unable to predict if or when the MoviePass service will continue."

This announcement came as Business Insider waited for comment from Helios and Matheson on a story that detailed the company's attempts to sell MoviePass and Moviefone, as well as continued layoffs.

The Friday before the Labor Day holiday weekend, the Moviefone editor Drew Taylor sent out an email to the site's freelancers informing them that "effective immediately all freelancing is suspended." The email, obtained by Business Insider, went on to say that Moviefone would make sure "everybody gets paid what they're owed as soon as possible," but multiple sources said some freelancers had not been paid for months.

To read Business Insider's inside look at what's been going on recently at MoviePass and Moviefone, read our full story on Business Insider Prime.

Leave a Reply

Your email address will not be published. Required fields are marked *