Startups
MoviePass borrowed $5M to end yesterday’s outage
More bad news for subscription movie ticket service MoviePass, which acknowledged yesterday that there was an unidentified issue preventing people from using their MoviePass credit cards to get tickets.
A regulatory filing from parent company Helios & Matheson offers more insight about what happened. The filing (first spotted by Business Insider) announces a “demand note” of $6.2 million, including $5 million in cash that the company borrowed. It goes on to explain:
The $5.0 million cash proceeds received from the Demand Note will be used by the Company to pay the Company’s merchant and fulfillment processors. If the Company is unable to make required payments to its merchant and fulfillment processors, the merchant and fulfillment processors may cease processing payments for MoviePass, Inc. (“MoviePass”), which would cause a MoviePass service interruption. Such a service interruption occurred on July 26, 2018.
In other words, it looks like MoviePass wasn’t able to pay one of its service providers, which led to the outage. In order to make those payments, it borrowed $5 million.
This doesn’t exactly inspire confidence in MoviePass’ finances. A Helios & Matheson filing from earlier this month suggested that the company was looking to raise up to $1.2 billion in equity and debt financing to fund MoviePass’ operations and growth.
Meanwhile, although the service is best-known for offering access to unlimited movie tickets for $9.95 per month, the specifics of the pricing model have been changing pretty frequently.
-
Entertainment6 days ago
Apple Watch Series 9 vs. SE: A smartwatch skeptic tested both for 13 days
-
Entertainment7 days ago
5 essential gadgets for turning your home into a self-care sanctuary
-
Business4 days ago
Google lays off workers, Tesla cans its Supercharger team and UnitedHealthcare reveals security lapses
-
Entertainment5 days ago
The greatest films on Prime Video right now
-
Business6 days ago
Google dubs Epic’s demands from its antitrust win ‘unnecessary’ and ‘far beyond the scope’ of the verdict
-
Business6 days ago
Apple: pay attention to emerging markets, not falling China sales
-
Entertainment5 days ago
Loneliness in kids: Screen time may play a role
-
Business5 days ago
ICONIQ Growth raises $5.75B seventh flagship fund