Moviepass Executive Resigns Over Corporate Management Issues
The recent troubles that Moviepass has had are well documents. And that is forcing many people to cancel their Moviepass account, and now it's starting to force some executives to leave the company. Moviepass' parent company, Helios and Matheson Analytics, lost a member of its board of directors – Carl Schramm – who decided to resign citing corporate management issues.
Schramm wrote a letter to Ted Farnsworth, who is the CEO of Helios and Matheson Analytics, dated August 25, highlighting his concerns for the company. Noting that "I have objected to the manner in which a number of business decisions have been presented to the Board of Directors by management, without sufficient time for the Board to examine complex documents, to review significant transactions, or to discuss how the proposed actions fit into the Company's strategic plan." Schramm continues to write that management has made plenty of "important corporate decisions and executed significant transactions either without Board knowledge or approval." That right there is pretty substantial, as major decisions do need to go through the Board of Directors for a public company – which Helios and Matheson Analytics are one, and traded under the ticker symbol HMNY. That could also be why Moviepass has had issues with money recently, making decisions that didn't make financial sense, and then running out of cash to fund its operations.
Moviepass launched as a subscription service about a year ago. It was a way for users to pay $10 per month and see a movie every single day of the month. For many, this seemed to good to be true – and now, we know it is too good to be true. Moviepass became so popular that the company was unable to pay the movie theaters for all of the tickets that the service was using, which ended up costing them big time. Now they have reduced their plan so much so, that users can only see three movies a month. That's a huge downgrade from the almost 30 movies a month, customers could have seen before.
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