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Will Netflix, Amazon Or Microsoft Buy MoviePass

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Will Netflix, Amazon Or Microsoft Buy MoviePass – CWEB.com

 

Microsoft  (MSFT ) just paid $7.5 Billion for GitHub a subscription software co. GitHub has about the same number of subscribers as MoviePass about 3 million and charge between $9- $20/ month. MoviePass Growing way faster then Github did. GitHub has 800 employees compared to MoviePass 70 employees, GitHub employees are expensive compared to MoviePass.

On January 19, 2018, at the Sundance Film Festival, MoviePass announced the new subsidiary MoviePass Ventures, which will co-acquire films with traditional distributors. Lowe explained that the company wanted to “bring great films to the big screen across the country for our subscribers”, and that “given the successes we have demonstrated for our distributor partners in ensuring strong box office in the theatrical window, it’s only natural for us to double down and want to play alongside them – and share in the upside.”MoviePass Ventures’ first acquisition (in partnership with The Orchard), Bart Layton’s American Animals, will be released on June 1, 2018.

In June 2016, MoviePass named Mitch Lowe, a former executive of Netflix (NFLX) and Redbox, as its new CEO. Lowe had been an advisor to the company since 2014.  Under Lowe, the service began to experiment with different pricing models

Helios advanced MoviePass $55 million from December to February 20, 2018. MoviePass then converted the advances from debt to capital. Helios thus ownership stake increased from 62.4 percent to 81.2 percent. Another $35 million in advances converted to capital put Helios to 91.8 percent allowing for a merger unilateral initiated by the Helios board.

In February 2018, the price further dropped to $7.95 per month for new customers if they paid annually.

In April 2018, Helios and Matheson acquired the movie listings website Moviefone from Verizon’s (VZ) digital media subsidiary Oath Inc. As part of the transaction, Verizon took a stake in MoviePass stock.

Helios and Matheson Analytics (HMNY) provide information technology services and solutions that focus on big data, artificial intelligence, business intelligence, social listening, and consumer-centric technology. Helios currently owns approximately 92% of the outstanding shares (excluding options and warrants) of MoviePass Inc. Helios also represents companies in the healthcare, retail, education, and government industries.

Helios stock (HMNY)  has progressed back 15% since Citadel Securities increasing its stake by 5.4% to 6% led to a short-lived rally of the stock. Helios and Matheson Analytics Inc. (NASDAQ:HMNY) which has a year to date performance of -94.31%. Panic selling set in when investors talked about the rate of cash burn the company is going through. The stock now trades at $.034 from its $32.9 high a year ago today.

MoviePass will take over the library of Emmet Furla Oasis (NYSEARCA:EFO) films, the studio responsible for the Rambo and Lone Survivor films.HMNY will have a 51% of the new company, and EFO will own a 49% minority stake. The new company will be called MoviePass Films.

Analysts are now bullish on the stock as distributing films with new productions should be a win-win. EFO films founder said in a statement, “What impresses me the most is that MoviePass can guarantee box office attendance, which is a game changer. I don’t believe anybody else can do that.”

MoviePass had a growth subscriber rate of 15000% in 10 months, gaining 3 million subscribers from 20,000 subscribers. Helios plans to capitalize on the unique assets of its subsidiary, MoviePass Inc. (“MoviePass”), to market future MoviePass Films to the millions of MoviePass subscribers and moviegoers all over the world.

MoviePass Inc. is a marketing platform enhancing is the nation’s premier movie-theater subscription service, MoviePass provides film lovers the ability to see up to one new movie title per day in theaters. MoviePass is accepted at over 90% of theaters across the United States.

Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bullish. Technical indicators also suggest that Helios and Matheson Analytics (HMNY), is undervalued.

A potential Buy is very possible for MoviePass by Amazon(AMZN),  Netflix (NFLX) or  Microsoft (MSFT).

CWEB Analysts have issued a Buy Rating for Helios and Matheson Analytics (HMNY)  and a Price Target of $20 

Chart
HMNY data by YCharts

 

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