3 High Profile Departures This Week From HMNY and Moviepass Saga – Do They Matter?
This week we saw some key people head for the exits from the Moviepass story:
- Earlier this week Board Member Carl Schramm called it quits – he claimed to be unhappy with disclosure to the board, and felt the BOD was not being consulted for big strategic decisions.
- CPO Mike Berkley threw in the towel just today. It was not clear if he quit, was fired, or if it was a mutual agreement to part ways.
- And on the finance side the last standing financial analyst killed off coverage of HMNY. Austin Moldlow from Canaccord Genuity, sent an email to subscribers Friday saying he was terminating coverage of MoviePass. This guy is a ghost on the web now. He even took down his LinkedIn profile. Maybe he fears his life…
Where there is a lot of turmoil, it’s not unusual to see a lot of turnover. Some people, probably wisely, just don’t want to deal with this level of headaches. BOD members see more risk than opportunity at these levels. Employees have seen their stock options implode and may lost faith that any new options or other compensation will make up for the hole they find themselves in.
On the analyst side, it has to be pretty humiliating to have a 99% wipeout on your tip sheet. Hell, this Moldlow guy may be finished after the HMNY debacle. Lawsuits are lined up a mile long, and was bullish recommending the stock almost the entire way through.
Berkley only made it 6 months, and honestly the product delivery seemed stalled or non-existent under his watch. So maybe it is a positive to see him go down the road. It’s rare to see a startup move so slowly with so many obvious things that seem easy to add from the product roadmap. Something is not working well there, maybe Berkley took the hit.
So it’s not surprising that some folks are jumping ship here. Maybe we will get lucky soon and Ted will jump ship, or get pushed off!
Expect a wild ride to continue.