MoviePass to be spun off into separate company amid investigation

Helios and Matheson announced Tuesday its plan to spin off MoviePass, a subscription service that allows customers to attend up to three movies a month, into a new subsidiary called "MoviePass Entertainment Holdings Inc."

Why it matters: MoviePass has skyrocketed in popularity since its founding in 2011, but found itself in trouble this year when its popularity began to outstrip its profits, forcing Helios and Matheson to seek up to $1.2 billion in equity and debt securities to keep the service afloat. Per CNBC, the New York attorney general opened an investigation last week into whether the company misled investors about its financials.