Moviepass Buys Emmett Furla Oasis Films

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MoviePass parent company to acquire Emmett Furla Oasis and launch new film division

Oh, MoviePass, what are you doing now? Buying up a movie production company, apparently. MoviePass's parent company and majority shareholder, Helios and Matheson Analytics, today announced its plans to acquire the entire film library and current production slate of Emmett Furla Oasis Films (EFO Films) in order to create MoviePass Films LLC.

Helios will own 51 percent of the new company, while EFO Films will own 49 percent.

EFO Films' library includes titles like Lone Survivor, Broken City, Rambo, The Amityville Horror, Escape Plan, The Frozen Ground, and has upcoming titles that include 2Guns, Escape Plan 2, Escape Plan 3; and a movie based on the video game Asteroids by Atari, among others.



Variety was first to report the news, in an interview with Helios and Matheson CEO Ted Farnsworth; MoviePass has also put out a press release.

The acquisition is part of MoviePass' larger plan to not only push moviegoers back into theaters by offering them a more affordable, subscription service for in-person movie watching, but also to back, distribute and profit from its own movies or stakes in movies. The company had already taken steps into this space, by buying distribution rights to films, as with The Orchard’s “American Animals” at Sundance. It also has a low seven-figure equity stake in the John Travolta "Gotti" film, Deadline reported last month - which is part of the EFO slate.

MoviePass is promising distributors its app can push its 3 million subscribers to the film's opening weekend, but it also aims to generate revenue further down the road from things like international and streaming distribution, merchandising, music, and other ancillary rights.

The move to acquire EFO Films comes at a critical time for MoviePass, where questions are swarming over how long this company - and its cash - can really last. Its stock has been dropping, last week reaching a record low of 40 cents a share. An SEC filing confirmed earlier this month the company had just $15.5 million in the bank, and the firm has been going through around $21.7 million per month.

To keep going, MoviePass could sell more stock or borrow cash - like from that $300 million line of credit Farnsworth mentioned at Cannes - but its business model is increasingly been viewed as unsustainable. And yet MoviePass keeps doubling down on what appears to be a losing hand - even bringing back its unlimited subscription plan after pulling it the month before, with little explanation beyond "we're experimenting."

Despite the chaos surrounding the company, the stock actually got a bump up last week, on news of Citadel Securities' disclosure of its 5.4 percent stake in Helios and Matheson. Other shareholders include Farnsworth himself, and Verizon's Oath (which also owns TC), as result of Oath's recent sale of its Moviefone business to Helios and Matheson in April.

“Ever since we co-acquired our first film with MoviePass Ventures, American Animals, which is set for release this coming June 1, we’ve been looking for an opportunity to acquire and produce content on a larger scale, and prove the power of the MoviePass service in the process,"said Ted Farnsworth, Chairman and CEO of Helios, in a statement about the acquisition. "We believe we’ve found that opportunity with Emmett Furla Oasis Films. MoviePass Films and MoviePass Ventures, our studio driven production company and our independent film investment division, will both play integral roles in our grand business strategy,” he added.

Meanwhile, EFO Films' founder Randall Emmett praised MoviePass's ability to drive traffic.

“To do a deal with Helios and MoviePass is epic for us,” he said. "The MoviePass subscription service has totally disrupted the movie industry, for the better. When we worked with MoviePass Ventures on the movie Gotti...I immediately saw how revolutionary the MoviePass service is. I have never seen any player in our industry move so quickly and gain such a large following in such a short period of time," Emmett continued. "What impresses me the most is that MoviePass can guarantee box office attendance, which is a game changer. I don’t believe anybody else can do that."

Yes, but for how long?


techcrunch.com/2018/05/30/moviepass-parent-company-to-acquire-emmett-furla-oasis-and-launch-new-film-division/

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MoviePass Parent Company Acquiring Emmett Furla Oasis Films


Helios and Matheson Analytics, the parent company of MoviePass, has acquired the exclusive option to buy Emmett Furla Oasis Films, the producers of “Lone Survivor” and “End of Watch,” Variety has learned.

If completed, the deal will enable the company to buy the entire film library and current production slate of EFO Films. Helios and Matheson plans to use the library and the filmmaking expertise of EFO Films to launch its own production company, MoviePass Films. Randall Emmett and George Furla will serve as co-CEO’s of the new venture.

The deal comes as MoviePass, best known for allowing customers to see a movie a day for less than $10 a month, is facing questions about its long-term future and current capitalization. Last week, Helios and Matheson’s stock fell to 40 cents-a-share, its lowest closing price, amid investor alarm about a cash shortage. In October, Helios and Matheson’s stock had been trading at $38.86 a share. The value has declined rapidly since a recent filing with the Securities and Exchange Commission revealed the company had $15.5 million in available cash at the end of April, plus $27.9 million on deposit with merchants. Its monthly expenses totaled $21.7 million. Helios’ stock did rebound on Monday, rising 15% after it was revealed that Citadel Securities, a leading market maker, had taken a 5.4% stake in the company.


In an interview with Variety, Helios and Matheson CEO Ted Farnsworth said the deal to acquire EFO Films is a sign that MoviePass remains viable.

“This signals our long-term commitment to the movie business,” he said. “We’re here for the long haul.”

In an earlier interview at Cannes, Farnsworth hit back at critics, claiming that the company had roughly $300 million available from an equity line of credit. The deal for EFO Films is a combination of cash and stock. The financial specifics of the pact were not disclosed.

Even before the pact to buy EFO Films’ library, MoviePass has been inching into the content business. It is releasing “American Animals” on June 1 in collaboration with the Orchard, and it will release “Gotti,” a crime film with John Travolta, on June 15. EFO Films produced the picture, which is how Farnsworth became acquainted with Emmett and Furla.

Helios will own 51% of MoviePass Films, while EFO Films will own the remaining 49% of the company. The partners say that MoviePass Films make new movies both for theatrical release and for other forms of distribution, such as direct-to-streaming services.

“Since we began disrupting the movie industry with our unprecedented low cost movie theater subscription service, MoviePass, we have envisioned owning and developing our own content and using the power of our several million subscribers to bolster the success of our films,” Lowe said in a statement. “I believe this partnership with Emmett Furla Oasis Films will accelerate those efforts.”

Stuart Benson, CFO of Helios, will serve as the CFO of MoviePass Films; while Farnsworth will be MoviePass Films’ chairman of the board. MoviePass CEO Mitch Lowe will hold a seat on the board.


The EFO Films library also includes “Broken City,” “Rambo,” and “The Frozen Ground,” as well as films in development such as “Escape Plan 2” and “Asteroids,” an adaptation of the Atari video game.

MoviePass has been a controversial figure in the industry. The company pays movie theaters for its tickets and subsidizes its customers. However, exhibitors such as AMC have faulted the company for introducing an unsustainable pricing model into the business. Tickets in cities such as New York City or Los Angeles are in excess of $10, or cost more than a monthly MoviePass membership. They believe that MoviePass won’t be able to afford to keep subsidizing movie-going, leaving customers feeling aggrieved.

MoviePass has countered by saying that it is diversifying its business beyond subscriptions. It sells ads and plans to use the data from its customers to target moviegoers in ways that make money. Presumably, producing movies is part of its diversification.

Emmett said that his time working on “Gotti” had made him a MoviePass convert, praising the service for being able to drive its user base of more than 2 million customers to buy tickets.

“To do a deal with Helios and MoviePass is epic for us,” said Emmett. “The MoviePass subscription service has totally disrupted the movie industry, for the better.”

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www.hollywoodreporter.com/news/moviepass-parent-company-acquire-emmett-furla-oasis-films-1115669

MoviePass Parent Company to Acquire Emmett Furla Oasis Films

The deal helps Helios and Matheson Analytics launch MoviePass Films with the producer of 'Lone Survivor' and 'Broken City.'
MoviePass parent Helios and Matheson Analytics is to acquire film producer Emmett Furla Oasis Films, including its film library and current production slate.

Terms of the deal were not disclosed, but Helios is paying Randall Emmett and George Furla, head of the film financing and production banner, a combination of cash and stock. The deal for EFO Films, which produced Lone Survivor and Broken City, will also allow the parent of the controversial movie theater subscription service, which famously sells 30 cinema tickets for the price of one, to move forward with plans to launch MoviePass Films to produce and distribute movies.

Helios will own 51 percent of the new division, and EFO Films will have the remaining 49 percent stake in MoviePass Films. Emmett and Furla will serve as co-CEOs of MoviePass Films, which aims to allow Helios to get into theatrical film distribution.

"To have such a well-known, quality production company join forces with the Helios/MoviePass group of companies at this early stage in our development is truly remarkable,” said Mitch Lowe, MoviePass CEO, in a statement.

MoviePass had been wooing moviegoers with a cinema ticket per day for just $9.95 a month, but the company has been watering down its movie theater subscription offer in recent months as its share price falls amid investor skepticism.

But as the company diversifies, MoviePass is eyeing its deal for EFO Films to develop its own content and use its subscriber base to help market film releases.

"I believe this partnership with Emmett Furla Oasis Films will accelerate those efforts and demonstrate the power of MoviePass to drive movie theater attendance and downstream sales, for the benefit of moviegoers, movie theaters, studios and the filmed entertainment ecosystem as a whole,” Lowe added.

EFO Films was launched in 1998, and merged in 2013 with Oasis Ventures Entertainment. Upcoming releases include Martin Scorsese's Silence and Tupac, a biopic on the hip hop pioneer Tupac Shakur.

"To do a deal with Helios and MoviePass is epic for us. The MoviePass subscription service has totally disrupted the movie industry, for the better," said Randall Emmett in his own statement.

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deadline.com/2018/05/moviepass-parent-buys-emmett-furla-oasis-launches-new-film-division-1202399885/


MoviePass Parent Buys Emmett Furla Oasis, Launches New Film Division


MoviePass parent company Helios & Matheson Analytics has launched a new subsidiary, MoviePass Films, and said it is acquiring Emmett Furla Oasis Films, producer of movies including Lone Survivor. The deal encompasses the EFO Films library as well as the company’s current slate, which includes Gotti, the John Travolta biopic backed by MoviePass Ventures that is set for summer release.

RelatedMoviePass Ventures Takes Stake In John Travolta 'Gotti' Film - CinemaCon
The transaction brings together a known production entity with a company which has riled up the exhibition sector with its fixed-price subscription movie plan and panicked investors, who have seen the parent company stock take a dive. Distribution and exhibition are apt to view this deal with skepticism, akin to rearranging deck chairs on the Titanic. Many veterans of the box office trenches tell Deadline that MoviePass will not be able to weather the intense summer season of scheduled blockbusters, and could soon be out of business.



Today’s news follows a significant development for Helios. Citadel Securities said yesterday it had taken a 5.4% stake in Helios, boosting shares double digits, though today they are in red figures again and flirting with their 52-week low of 40 cents a share. In recent weeks, especially after the company warned of a cash crunch, the stock has retreated far below its high last fall of $38.86. A wall of doubt in the industry and on Wall Street has faced the company — in particular the formidable costs it faces in terms of increasing its membership base, with returns limited by the $9.95 subscription price.

Upcoming titles among EFO’s planned 12-15 releases a year include Boss Level with Naomi Watts and Mel Gibson; 2Guns, Escape Plan 2 and Escape Plan 3 with Sylvester Stallone; and The Irishman, Martin Scorsese’s film starring Robert De Niro and Al Pacino.

Terms of the deal were not disclosed, though the parties confirmed it involved a combination of cash and stock.

Under the arrangement, MoviePass Films will be 51%-owned by Helios, with 49% owned by EFO Films. MoviePass Films, according to the official announcement, will focus on “studio-driven content and new film production for theatrical release and other distribution channels.” Randall Emmett and George Furla will serve as co-CEOs of MoviePass Films. Ted Farnsworth will be chairman of MoviePass Films, with MoviePass CEO Mitch Lowe also holding a board seat.

The game plan for the new venture is to capitalize on the capabilities of MoviePass, which now has more than 3 million subscribers and it is burning through millions of dollars a month trying to add more. That gives MoviePass Films a built-in marketing base, the companies said.

“To have such a well-known, quality production company join forces with the Helios/MoviePass group of companies is truly remarkable,” Lowe said. “Since we began disrupting the movie industry with our unprecedented low-cost movie theater subscription service, MoviePass, we have envisioned owning and developing our own studio content and using the power of our several million subscribers to bolster the success of the box office for our films. I believe MoviePass Films will accelerate those efforts and demonstrate the power of MoviePass to drive movie theater attendance and downstream sales, for the benefit of moviegoers, movie theaters, studios and the film entertainment ecosystem as a whole.”

Emmett called the deal “epic.” He said during his dealings with MoviePass on Gotti, he “immediately saw how revolutionary the MoviePass service is. I have never seen any player in our industry move so quickly and gain such a large following in such a short period of time. What impresses me the most is that MoviePass can guarantee box office attendance, which is a game changer. I don’t believe anybody else can do that.”