We have some more MoviePass news for you folks, and unlike all the news for the past several months, it’s not morbidly depressing news — at least not on the surface. According to a new report from Deadline, Helios and Matheson Analytics, the parent company of the struggling subscription service MoviePass, is planning on spinning off the service into its own separate, publicly-traded company.

The goal of this is to reportedly allow the company to be a vertically-integrated entity that will focus on film production, marketing, and exhibiting. We obviously have another company, MoviePass Films — also owned by HMNY — which functions as the production end, and under this new arrangement, it can allow them and the subscription service MoviePass work together better under a single company umbrella.

“We believe this new vertically integrated entertainment ecosystem,” Ted Farnsworth, chairman and CEO of parent company Helios and Matheson (HMNY) said. “If achieved, would provide a sharper market focus, and that the combination of these four business lines under the MoviePass Entertainment umbrella would produce substantial synergies that we believe will generate value for our shareholders, subscribers, and business partners.”

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The new subsidiary would be called MoviePass Entertainment Holdings. Though while they discuss how it would just be a better structural move for the company, I can’t help but feel that, in making it its own publicly-traded company that they’re just trying to distance themselves from the service. This seems to be backed up by Farnsworth.

“Since we acquired control of MoviePass in December 2017, HMNY largely has become synonymous with MoviePass in the public’s eye,” he said, “leading us to believe that our shareholders and the market perception of HMNY might benefit from separating our movie-related assets from the rest of our company.”

What do you think of this move? Do you believe the positives coming out of this or do you think it’s an elaborate move to distance HMNY from MoviePass before it implodes for good? Let us know your thoughts down below!

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SOURCE: Deadline