As per the new updates, the shares of Helios and Matheson Analytics Inc., which is the owner of MoviePass, jumped up 31% today, on top of a 6% increment on Friday after Verizon revealed its 9% stake in the company.
The stock of the company closed at 4.21 USD, which is the highest level since February, but quite below the 20 USD level that the company achieved last October during the increased interest in the monthly subscription movie ticket plan, offered by MoviePass. That service started controversy in the theater sector. MoviePass had to banned major circuit AMC at some locations for quite a long time. Many tech and media experts have always wondered that how a company can manage to arrange funds for its operational needs when it is making attempts to acquire new subscribers.
Because of Verizon’s involvement in the company’s stake, it will help bring about stability to the company. The mobile carrier giant disclosed on Friday in an SEC filing that it has 9.3% of the stocks outstanding in Helios and Matheson Analytics Inc. This makes Verizon the second-largest stakeholder in the company after CEO Theodore Farnsworth. As per the new SEC filings, it has been discovered that insiders own around 17% of Helios and Matheson, which manages cloud computing and data. However, in the field of media and entertainment, it is well known for its subsidiary, MoviePass.
These companies are already well informed about each other. Verizon has sold Moviefone, which is an early ticketing pioneer company, to Helios and Matheson earlier this month for an amount of cash and equity that were not revealed.
Apart from obtaining the access to 6 million unique visitors on a monthly basis to Moviefone application and website, the transaction was planned to establish MoviePass more sturdily into the movie business market. It is almost certain that investors trading the shares are expecting it to be beyond “Netflix of exhibition”, but the technology firm is capable of boosting the unprofitable exhibition business via its smart utilization of data.
In the official announcement of Moviefone, Ted Farnsworth, HMNY’s CEO and Chairman, said, “HMNY’s visions that MoviePass become supporter of the whole movie theater industry environment – from exhibition to distribution and content as well.” He further added that most importantly, they believe that the acquisition of MovieFone would be very beneficial, in terms of revenue generation, for MoviePass and HMNY.