We’ve been reporting on the situation with MoviePass for a little while now, and things seem to be getting worse and worse for the company. While they keep assuring people that everything is okay, they are starting to look like the “This Is Fine” dog.
According to Deadline, MoviePass stock has fallen to $.54 a share dropping another 12%. The share price has dropped more than 75% since the report came out that the company only had $15 million in cash when they spend more than $20 million per month. While the company keeps assuring everyone that they have access to plenty of revenue there just doesn’t appear to be any data to back everything up.
MoviePass currently has 3 million subscribers, and they are expecting to have 4 million by the end of the year. However, their own numbers have suggested they need more like 5 million before they start breaking even. If they wanted to get to $10 million they would need an additional $700 million according to Julian Lin, a startup investor from Hillcrest Venture Partners estimated.
Lin took a stark view of the company’s finances. “Even using incredibly optimistic assumptions,” he wrote, the company “may still be way overvalued.” In taking a closer look at the balance sheet, he added, “it becomes clear why Wall Street has thus far shown a complete lack of interest in buying their stock.”
MoviePass’s attempt to help finance movies didn’t exactly go well either. They helped the movie Gotti get a wide release and even premiered at the Cannes Film Festival, where it was decimated by critics. Not exactly how they expected things to go when they got into Cannes.
- Aaron Taylor-Johnson Comments on Quicksilver’s Return for Avengers 4 - October 19, 2018
- Netflix and Marvel Cancel Luke Cage - October 19, 2018
- Daredevil Season 3: 3 New Behind-the-Scenes Photos - October 19, 2018
- Check Out Some Armored Sharks in These New Aquaman Images - October 19, 2018
- Disney’s Jungle Cruise Gets Delayed 9 Months - October 19, 2018