MoviePass will not die. According to TheWrap, MoviePass’ parent company’s former CEO has made a bid to purchase the company and take it private. Ted Farnsworth resigned from Helios and Matheson Analytics (MoviePass’ parent company) as CEO on Monday and made a bid to purchase the companies assets.
TheWrap has an official statement from Farnsworth stating “I put in an official offer to buy all the assets of Helios and Matheson, which is the owner of MoviePass, MoviePass Films and Moviefone…We’re looking to expedite and be one of the bidders out there. I believe in the brand.”
MoviePass has bit a dumpster fire for cash. The service closed down on Friday after failing to raise additional capitol to run the business. Farnsworth would need millions of dollars to buy the company and millions more to be able to operate.
In MoviePass’ heights, they claimed over 3 million subscribers. During their downward spiral, millions of those subscribers left for other services. AMC and Regal both have their own versions of MoviePass and offer discounts and rewards for concession purchases.
Variety reports Farnsworth plans to rebuild the brand. “I believe there is great unrealized value in MoviePass and we want to rebuild and make sure it reaches its full potential,” Farnsworth said in a statement. “I have always believed in the business model and the brand [former MoviePass CEO] Mitch Lowe and I built at MoviePass. There’s tremendous appetite for movie theater ticket subscription.”
According to Variety, Helios lost over $300 Million in 2018.