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Businesses The Almighty Buck

MoviePass Parent Files To Raise $1.2 Billion To Stay Afloat (variety.com) 35

Posted by BeauHD from the rough-waters dept.
An anonymous reader quotes a report from Variety: Helios and Matheson Analytics, the struggling parent company of MoviePass, filed a registration statement with the SEC to raise up to $1.2 billion in equity and debt securities over the next three years. The funding is intended to support the cash-burning operations of MoviePass, as well as the MoviePass Ventures movie investment subsidiary, MoviePass Films and Moviefone, which Helios and Matheson recently acquired from Verizon's Oath.

Of course, whether Helios and Matheson can actually persuade investors to keep pouring money into the venture is unknown. The announcement comes after Helios and Matheson, the New York-based data and analytics company that bought MoviePass in 2017, last month announced a $164 million bond sale to provide working capital for MoviePass.
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MoviePass Parent Files To Raise $1.2 Billion To Stay Afloat More

MoviePass Parent Files To Raise $1.2 Billion To Stay Afloat

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  • Investors? (Score:5, Insightful)

    by DogDude ( 805747 ) on Monday July 02, 2018 @08:04PM (#56883292)
    What the hell are these investors investing in? This is a company that sells $10 bills for $5. This is one of the stupidest business models I think I've ever seen (and I'm kinda' old).

    • You gotta help me. I thought I was investing in Groupon.

    • I think they are trying to be like american health care... except for on a service that people barely want and nobody needs that is likely going to be dying on it's own in a few years.

      In short their business plan is more or less. First spare no expense, do whatever it takes to become the means people use to go to movies. Get positioned to the point where if a cinema were to say "no we don't take movie pass here", means turning away half or more of their customers. Then use that new leverage to tell the thea

    • They're owned by an analytics company. Remember the outcry when they said they wanted to start tracking you before and after the movie? That's their profitability, their end game. They want the data of date night. They hope they can then sell that data to theaters, restaurants, bars, etc. Fscebook uses the whole social aspect to bring people in to harvest their data. Moviepass' lure is the cheap movies.

      • Re: (Score:2)

        by DogDude ( 805747 )
        But giving away free movie tickets is an absurdly expensive way to grab this data. People willingly give their data away for free in exchange for an electronic gee gaw. Give people a stupid fucking emoji or gif or something equally as useless, and they can have all of that data for free.

      • I just don't see how we can base our entire economy on companies displaying ads and selling data to each other. At the bottom of the pile, doesn't someone need to actually make something for everyone else to market and sell?

        • Re: (Score:2)

          by gnick ( 1211984 )

          At the bottom of the pile, doesn't someone need to actually make something for everyone else to market and sell?

          For a date night like one we're discussing tracking, somebody makes drinks, dinner, and a movie and those things are purchased my the daters. Deciding who provides those things could be influenced by ads. There is a bottom here.

        • Ad-based data-collection companies like Google and Facebook go absolutely nuts in the stock market.

          Maybe it is because it is hard to estimate what a giant company that lives almost solely on the vague concept of "eyes" is really worth?

      • Comment removed based on user account deletion

  • How did it hit $32?? (Score:3, Interesting)

    by Anonymous Coward on Monday July 02, 2018 @08:07PM (#56883304)

    Something is very strange about their stock that it randomly goes from about $2/share to $32 a share from Sep 12 to Oct 11 2017 (https://finance.yahoo.com/quote/HMNY). Then it's proceeded to decline since this suspicious bubble up. What drove it up in the first place??

    • Comment removed based on user account deletion

      • So their stock price went through the roof when their revenue cut by more than half?

        That sounds almost like an orchestrated pump and dump scheme. I'm sure the SEC is keeping an eye on how many C-level execs cashed out.

  • Well, at least (Score:3)

    by Bruce Perens ( 3872 ) <bruce@perens.com> on Monday July 02, 2018 @08:10PM (#56883314) Homepage Journal
    These investors are smarter than the ones who shorted Tesla. That's all I can say :-)
  • How many MBAs you need to read and undersdand "invest ... in cash-burning operations"?
  • Comment removed based on user account deletion

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