Subscription Service May Be Revived

What do you call a bad idea that just won’t die?

MoviePass. Yep.

Theodore Farnsworth, the President of MP’s parent company, resigned and has offered to buy the assets of the failing concept, as well as other, perhaps more valuable ones including the production company MoviePass Films and MovieFone, a listing and information service.

Now, clearly insiders have better insight on the value of a company’s assets than outsiders, so he may know something others don’t.

But, if the program made economic sense when he was running it (and it is gasping for air), why would it be better now?

Perhaps because a Chapter 11 would wash away most of the debt?

There are a few other flies in the ointment including an investigation by the New York Attorney General for securities fraud and a class action suit.

So, a rocky road to resurrection at best.

theater

 

https://variety.com/2019/film/news/former-moviepass-chairman-ted-farnsworth-trying-to-buy-failing-subscription-company-1203338752/

Advertisements

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.