Helios and Matheson Analytics

Helios and Matheson Analytics was a publicly traded data analytics company based in New York City, New York that served as the parent company of MoviePass.

Helios and Matheson Analytics Inc.
Public
Traded asOTC Pink: HMNY
IndustryData
Cinema
FateChapter 7 bankruptcy
Founded1983; 37 years ago (1983)
DefunctJanuary 28, 2020; 21 days ago (2020-01-28)
HeadquartersEmpire State Building, ,
U.S.
Key people
Parthasarathy Krishnan
(CEO)[1]
Decrease US$150.8 million (2017)
Number of employees
71 (2018)
Subsidiaries
Websitewww.hmny.com

HistoryEdit

The company was founded in 1983 by Shmuel BenTov as Software Ben-Tov.[2] It changed its name later that year to The A Consulting Team.[2] The company made its initial public offering in 1997.[3]

In 2006, Helios & Matheson Information Technology Ltd., an IT consulting firm based in India, purchased a majority stake in the company.[4][5] The A Consulting Team changed its name in 2007 to Helios & Matheson North America, to highlight its association with the parent company.[6]

The company again changed its name in 2011 to Helios & Matheson Information Technology Inc., to reflect that it was seeking business opportunities worldwide,[7] and then in 2013 to Helios and Matheson Analytics, to reflect that the business had "moved beyond IT".[8]

The company acquired Zone Technologies, maker of the RedZone Map app, in November 2016.[9][10] Zone founder Ted Farnsworth was appointed chairman of Helios, and then, in January 2017, became Helios's CEO.[10][11]

In August 2017, Helios purchased a majority stake in MoviePass.[12] Helios advanced MoviePass $55 million from December to February 20, 2018. MoviePass then converted the advances from debt to capital. This increased Helios' ownership stake from 62.4 percent to 81.2 percent. Another $35 million in advances converted to capital put Helios at 91.8 percent, allowing for a merger unilaterally initiated by the Helios board.[13] In January 2018 co-founder Stacey Spikes was fired from the company.[14]

In April 2018, Helios acquired the movie listings website Moviefone from Verizon's digital media subsidiary, Oath Inc. As part of the transaction, Verizon took an equity stake in MoviePass.[15]

In March 2018, the board of directors began the process to spin off Zone Technologies to shareholders as a separate, publicly traded company, in hopes that it would allow Helios to focus on its strengths.[16][17]

In April 2018, Helios sold $150 million in stock with $30 million of the shares at $2.75, a discount from the closing market price of $3.83. Most of the proceeds were used to fund MoviePass. With the diluting and discount on the shares, prior investors indicated their unhappiness with the company on Twitter.[18]

In May 2018, the company acquired the assets of Emmett Furla Oasis Films plus gain its executives' expertise in making films for a new subsidiary, MoviePass Films with an option to purchase the library.[19] The new company would be 51% owned by Helios and the remainder by EFO.[20] By early August 2018, Helios and Matheson completed the acquisition of Emmett Furla Oasis Films assets for the MoviePass subsidiary, MoviePass Films.[21]

In August 2018, the company reported a loss of $100 million in the second quarter of 2018 with the company trading at an implied value of $30 million.[22] In October 2018, the Attorney General of New York opened an investigation into Helios and Matheson Analytics, looking into whether it misled investors about the company's financial situation.[22]

With market perception of MoviePass affecting Helios & Matheson's stock value, in October 2018 the company revealed a preliminary plan to spin off its film industry units as MoviePass Entertainment Holdings. The plan calls for a stock dividend of a minority of the holding company's stock allowing Helios to retain a controlling interest and for listing the new company on the NASDAQ or alternative market.[23] The company' stock was delisted on February 12, 2019, from the NASDAQ and moved to OTC Markets.[24] On January 28, 2020, the company filed for chapter 7 bankruptcy and announced plans to liquidate its assets.[25]

ReferencesEdit

  1. ^ "Our Team". Helios and Matheson Analytics. Retrieved September 9, 2018.
  2. ^ a b Form SB-2: Registration Statement (Report). The A Consulting Team. June 13, 1997. pp. 12 & 35 – via EDGAR.
  3. ^ Form 10-KSB: Annual Report (Report). The A Consulting Team. March 31, 1998. p. 8 – via EDGAR.
  4. ^ Byron, Christopher (August 7, 2006). "Stock vindaloo: Shady Indian investors take grip of a U.S. firm". New York Post – via NewsBank.
  5. ^ Form 8-K: Current Report (Report). The A Consulting Team. September 8, 2006 – via EDGAR.
  6. ^ Form 10-K: Annual Report (Report). Helios & Matheson North America. March 29, 2007. p. 1 – via EDGAR.
  7. ^ Form 10-K: Annual Report (Report). Helios & Matheson Information Technology. March 13, 2012. p. 3 – via EDGAR.
  8. ^ Form 10-K: Annual Report (Report). Helios and Matheson Analytics. March 13, 2014. p. 1 – via EDGAR.
  9. ^ Bary, Emily (April 3, 2018). "Helios & Matheson stock falls after company gets extension for 10-K filing". MarketWatch. Retrieved June 5, 2018.
  10. ^ a b "Helios and Matheson Analytics and Zone Technologies, maker of RedZone Map, close merger" (Press release). Helios and Matheson Analytics. November 9, 2016 – via NewsBank.
  11. ^ "Helios and Matheson Analytics Inc. names chairman Theodore Farnsworth as chief executive officer" (Press release). Helios and Matheson Analytics. January 23, 2017. Retrieved September 9, 2018.
  12. ^ Lang, Brent (August 15, 2017). "MoviePass Sells to Helios and Matheson Analytics". Variety. Retrieved August 16, 2017.
  13. ^ Morgan, Richard (April 23, 2018). "MoviePass owners weighing merger despite burning through cash". New York Post. Retrieved June 5, 2018.
  14. ^ The cofounder of MoviePass recounts what led to his firing from the company he'd built from the ground up. Business Insider. 13 April 2019.
  15. ^ Smith, Gerry (April 5, 2018). "MoviePass Acquires Moviefone to Bolster Film-a-Day Service". Bloomberg. Retrieved April 5, 2018.
  16. ^ "Helios and Matheson Analytics Inc. announces plans to spin-off Zone Technologies Inc. to become a separate public company" (Press release). Helios and Matheson Analytics. March 15, 2018. Retrieved September 9, 2018.
  17. ^ Armental, Maria (April 18, 2018). "MoviePass owner's shares tumble after stock-sale plan". Wall Street Journal. Retrieved September 9, 2018. (subscription required)
  18. ^ Vega, Nicolas (April 20, 2018). "MoviePass faces angry investors after selling off $150M in stock". New York Post. Retrieved June 5, 2018.
  19. ^ Goldsmith, Jill (May 31, 2018). "MoviePass Expands And Will Now Make Movies Too". Forbes. Retrieved October 16, 2018.
  20. ^ Lang, Brent (May 30, 2018). "MoviePass Parent Company Acquiring Emmett Furla Oasis Films". Variety. Retrieved June 4, 2018.
  21. ^ Jr, Mike Fleming (August 7, 2018). "MoviePass Films Sets First Pic: Bruce Willis To Star In '10 Minutes Gone'". Deadline. Retrieved October 16, 2018.
  22. ^ a b Salinas, Sara; Forkin, Jim (2018-10-17). "New York AG launches probe into MoviePass parent company for allegedly misleading investors". CNBC. Retrieved 2018-10-19.
  23. ^ Vlessing, Etan (October 23, 2018). "MoviePass Parent to Spin Off Cinema Subscription Service". The Hollywood Reporter. Retrieved October 23, 2018.
  24. ^ Hayes, Dade (February 13, 2019). "MoviePass Parent's Shares Begin Trading Over The Counter After Nasdaq Delisting". Deadline. Retrieved February 19, 2019.
  25. ^ Linnane, Ciara. "MoviePass parent Helios and Matheson files for Chapter 7 and stock falls to zero". MarketWatch. Retrieved 2020-01-29.

External LinksEdit