(Reuters) – Helios and Matheson Analytics Inc said on Tuesday it will spin off its movie theater subscription service MoviePass into a separate public company.
MoviePass, a U.S. movie ticket subscription app, is seen on a mobile phone in this photo illustration in New York, U.S., May 15, 2018. REUTERS/Mike Segar/Illustration
The data company, which took a controlling stake in MoviePass in December, now owns a 92 percent stake in the business.
Helios and Matheson said it would create a new unit MoviePass Entertainment Holdings Inc that would take ownership of the shares of MoviePass Inc and other film related assets held by the company.
MoviePass allows subscribers to watch three movies a month for a flat fee of $9.95 and get discounts on additional movie tickets.
The company’s stock has lost nearly all its value this year as it burned through cash to support the MoviePass business.
Shares of the company rose about 40 percent to 2 cents after the bell.
Reporting by Supantha Mukherjee in Bengaluru; Editing by Arun Koyyur