If you’re on social media at all, you know MoviePass is on the brink of death. The service had to borrow $5 million to stay up and running, and it’s hiked prices and blocked first-run movies from the app. Doomed, right? Well, maybe not. MoviePass has managed to pay off that loan, and the company claims that it’s stronger than ever.
Deadline reports that MoviePass has filed some documentation with the SEC, which would be boring news if it hadn’t raised a few eyebrows over MoviePass somehow paying off $6.2 million worth of debt over a weekend:
Today’s update said the company has already paid back the $6.2 million it borrowed to ease a cash crunch during the opening weekend of Mission: Impossible – Fallout. Earlier filings had noted that the lender could have demanded $3.1 million in repayment starting today. The small dose of not-terrible news hasn’t stopped the free-fall of Helios & Matheson stock, which is already down 39% to 30 cents in early trading.
To be fair, enormous questions remain, like how the hell MoviePass is going to keep the lights on, even at $15 a pop with three million users, when all it takes is each user going to see two movies to wipe out its profit margins. Some are also curious as to where the company came up with $6.2 million when it’s been bleeding money for a while. It’s not out of the realm of possibility somebody’s stepped in to fund MoviePass; similar services are quickly catching on, and MoviePass has an advantage. It may not endure in its current form, but it’s beginning to look like MoviePass isn’t done quite yet.
(via Deadline)
