The complicated life of MoviePass just took another turn.
Helios and Matheson Analytics, the owner of the turbulent movie subscription service, announced plans Tuesday to spin off MoviePass as a separate publicly-traded company. As part of the plan, the new MoviePass Entertainment Holdings Inc. would take control of current MoviePass shares and all associated assets. That includes MoviePass Films LLC, MoviePass Ventures LLC and Moviefone.
The past year has been a turbulent one for MoviePass, which kickstarted the trend ofonly to confuse customers with and new pricing structures, .
"We believe this new vertically integrated entertainment ecosystem, if achieved, would provide a sharper market focus," Ted Farnsworth, Helios and Matheson Analytics chairman and CEO, said in a statement.
The plan, which still must be approved by Nasdaq, the US Securities and Exchange Commission and the state of Delaware, has been met with muted response by the market, with shares still trading for less than a dollar. Should the stock remain at that price, Helios and Matheson Analytics could be delisted from the Nasdaq entirely. The New York Attorney General's office is also currently investigating the company for allegedly misleading investors.