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MoviePass' Days Look Limited (bloomberg.com)
Kyle Stock writes via Bloomberg: Eight months after slashing its price and expanding membership past 2 million users, MoviePass is now at risk of going bust. The parent company, Helios & Matheson Analytics, which now owns 92 percent of MoviePass, said last week that it had just $15.5 million in cash at the end of April and $27.9 million on deposit with merchant processors. MoviePass has been burning through $21.7 million per month. A U.S. Securities and Exchange Commission filing last month revealed that the company's auditor has "substantial doubt" about its ability to stay solvent. Michael Pachter, an analyst at Wedbush Securities Inc., warns that MoviePass may not survive the summertime run of blockbusters. On Tuesday, Helios reported the performance of MoviePass for the three months ending on March 31. The company lost $107 million, earning just over $1 million from marketing deals and $47 million from subscriptions. Helios shares have fallen to decade lows of less than $1 after peaking at $32.90 in October, alongside the MoviePass hype.
The CEO. Those poor guys always take a hit when their business goes south.
#DeleteChrome
Perhaps you could list a few of these felonies that 'everyone' is committing 'every day'....
When the, "Why You Never Talk to The Police" video was released, there were over 50,000 Federal laws on the books. There are many more than that, because somewhere around 50,000 is where they stopped counting. According to that same video, nobody knows exactly how many Federal laws there are. And that's not even counting State and local laws.
So no, nobody should be stupid enough to believe that they are committing three felonies every day. That number is too low.
We honestly need - as a planet - to put in laws that stop this shite.
No we do not. You cannot legislate against businesses failing. You have to let people take risks (including big risks) as long as they do not endanger the entire financial system. Very few companies are significant enough to present that kind of risk because they are already very big and successful by that point.
I know the shareholders are the main ones being burned, but if after a year of operation you can't show overall profit
Do you have any idea how many companies you depend on that weren't profitable for far more than a year? Pretty much every drug company startup doesn't show a profit for the better part of a decade. Amazon wasn't profitable for many years as was Facebook. It's not at all unusual for companies to not be profitable for 2-3 years or more.
If the shareholders are ok with burning cash for a larger payout down the road then that is fine. It's their money and if you don't take any risks chances are you aren't going to see a big payday.
Yes, I have owned a business. It wasn't large, I don't claim that. But I never made a loss, not once.
Congratulations but that is very unusual. I've started 5 companies and several of them didn't ultimately make any profit.
Yes, that would mean no Amazon (or at least, an Amazon starting up in a very different way). But it would also mean that there wouldn't be a thousand Amazon wannabes all doing the same and losing people's money, because it's not JUST the shareholders who lose out. Everyone from employees to suppliers to the taxpayer loses out from such things.
That's complete nonsense. Taxpayers do not lose out in any way. The government still taxes income and that gets paid. Most companies are not C-Corps anyway. You cannot force companies to be successful. There is no way to run a robust economy without allowing people to fail.