Helios & Matheson Analytics have announced a plan to spin off its struggling movie ticketing subscription service as a separate, publicly traded entity called MoviePass Entertainment Holdings.
The board has preliminarily approved the spin-off plan that would combine MoviePass Inc. and other film-related assets including membership interests in MoviePass Films, MoviePass Ventures and Moviefone, to create a ‘vertically integrated’ entertainment company.
Once spun-off, Helios & Matheson plans to continue focusing on data analytics and consumer-centric technologies free of MoviePass and the problems that have come with it since their acquisition.
However, Helios & Matheson is reportedly not sure such a transaction is allowed under Delaware law. Additionally, the company remains under investigation by the New York Attorney General’s office into whether they misled investors, they’re being sued by investors alleging they deceived shareholders, and any spin-off requires multiple legal and approval hurdles to be cleared before proceeding.