The corpse of MoviePass — the cinema subscription service that flamed out last year after running out of cash — could be yours for as low as $250,000.
The court overseeing the sale of MoviePass’s assets has set June 18 as the deadline for interested bidders. The proceeding comes after MoviePass parent Helios and Matheson Analytics filed for Chapter 7 liquidation in January, after sustaining massive financial losses. In its bankruptcy filing, Helios and Matheson listed the estimated value of assets at between $1 million-$10 million.
However, none of the personally identifiable information on former MoviePass customers (such as emails addresses) will be part of the bankruptcy sale, which may arguably be the most valuable piece of the now-defunct service.
The investment firm advising the Helios and Matheson’s bankruptcy trustee has set bids for MoviePass at a minimum of $250,000. In March, as part of the Chapter 7 proceeding, the assets of Moviefone were won for the fire-sale price of $1 million by Cleveland O’Neal III, creator and producer of syndicated daytime entertainment show “Made in Hollywood.”
It’s unclear who would want to buy the remains of MoviePass at any price, never mind the fact that thousands of movie theaters across the U.S. remain closed during COVID-19 and moviegoing is likely to see a very slow return to previous levels.
So what would a potential buyer of MoviePass actually be getting?
According to court documents, the assets include all proprietary software and code used by MoviePass for the operation of its mobile app, website and services; certain sample polling analyses containing selective operating metrics prepared by MoviePass; and five domain names: moviepass.com, moviepass.com.mx, moviepass.jp, moviepass.net and moviepass.org.uk.
Also included in the MoviePass sale are ownership rights to the defunct service’s trademarks plus a trio of patents: U.S. Patent Nos. 8,484,133 B1 (“Secure Targeted Personal Buying/Selling Method and System”); 8,612,325 B2 (“Automatic Authentication and Funding Method: Date of Patent”); and 9,135,578 B2 “Secure Targeted Personal Buying/Selling Method and System”).
Bids for the MoviePass assets must be submitted by 5 p.m. ET on June 18, 2020, to the bankruptcy trustee’s financial advisor, Miami-based investment banking firm Cassel Salpeter & Co (casselsalpeter.com), as well as to Alan Nisselson, a partner at New York law firm Windels Marx who is serving as the bankruptcy trustee for Helios and Matheson. To qualify to submit a qualified bid, potential bidders must furnish financial information showing they’re able to make good on their offer and provide a “good faith” cash deposit of 10% of their proposed bid.
The auction — assuming there is one — is scheduled to take place telephonically on June 25.