MoviePass Backer Plunges After Warning Service May Not Make It
- Helios & Matheson also boosted support to $11.5 million
- Users get daily pass to movie theaters for $10 a month
Employees fill popcorn cartons with fresh popcorn inside the snack bar at the Georgetown Drive-In movie theater in Georgetown, Indiana, U.S., on Friday, July 17, 2015. The Georgetown Drive-In opened in 1951 and has been family-owned and operated for the past fifty years.
Photographer: Luke Sharett/Bloomberg via Getty ImagesHelios & Matheson Analytics Inc., the backer of the controversial $10 MoviePass subscription, fell as much as 21 percent after warning the money-losing cinema service may not make it.
Helios boosted its support for MoviePass to $11.5 million from $5 million as part of an August deal to acquire a majority stake, according to a regulatory filing. At the same time, Helios said MoviePass’s auditors are expected to warn of substantial doubt about its ability to continue as a going concern.