Helios and Matheson Analytics Inc’s (NASDAQ:HMNY) MoviePass has bought Moviefone in an effort to expand its subscriber base.
MoviePass’ acquisition of Moviefone has it buying the company from Verizon Communications Inc. (NYSE:VZ) subsidiary Oath. The transaction includes $1 million in cash and 2,550,154 shares of HMNY stock. It also includes warrants for another 2,550,154 shares of HMNY stock at $5.50 each.
“We believe the acquisition will allow us to connect studios and brands with potential new subscribers, capture their attention, and convert them into paying subscribers,” Khalid Itum, VP of Business Development at MoviePass, said in a statement. “We believe Moviefone will also allow us to provide relevant and appealing content to moviegoers while simultaneously increasing the value of the Moviefone brand.”
MoviePass notes that the acquisition of Moviefone will give it access to the services 6 million unique visitors a month. The service acts as a place for moviegoers to find out information about films, see local show times and purchase tickets in advance.
Helios and Matheson Analytics has been making strong pushes with MoviePass lately in an effort to grow its subscriber base. This includes a special offer for new subscribers of $6.95 per month. The normal price is $9.95 a month.
It also recently singed a deal with Landmark Theaters. This makes it so that the company’s subscribers can now uses their MoviePass to see films at any of the 53 theaters across the U.S.
HMNY stock was down 2%, but VZ stock was up slightly as of noon Thursday.
As of this writing, William White did not hold a position in any of the aforementioned securities.