Will the merger with Zash Media help Lomotif owner Vinco Ventures’ price target?
With the legal worries are now behind Lomotif’s majority owner Vinco Venture Inc (BBIG) it’s time for us to review what BBIGs price target could be after the merger with Zash Global Media.
Vinvo Ventures, which owns 80% of TicToc rival Lomotif, a social media app for making videos with pictures and music, could be on the brink of finally merging with Zash after their legal woes surrounding their board members have come to an end and BBIG settled.
Vinco Ventures announced that Ross Miller has been official named as CEO after months of boardroom struggles and previous co-CEO Lisa King is moving back to her role on the Board of Directors alongside Rod Vanderbilt. Both King and Vanderbilt were company targets earlier in the summer in a failed hostile takeover attempt. Ross said that “with the settlement agreement, and litigation behind us, Vinco’s leadership team is aggressively working together towards the completion of our quarterly filings as well as working closely with the Zash and ZVV management teams to work towards completion of the combination of these companies as soon as possible.” i.e. working on the merger between Vinco and Zash Media and hence it makes sense to review BBIGs price target after the merger.
The Lomotif app, the social media video editor app that is said to rival TicToc is said to have had over 225 million app downloads back in 2021 with an eye-watering 300 million videos watched on the app every month. Lomotif offers much of the same functionality as TikTok, letting you trim videos, edit in-app, add slow-motion, and more. It also comes with a large music and effect library, stickers, emojis, and beauty filters. Users can collaborate with friends on the app to create videos, too. So Lomotf is an app for making videos with pictures and music, which is now primarily US owned and hence became the fastest growing video maker app in India , where TicToc is banned with over 41m active users.
Lomotif allows user to live stream festivals, such as the Okeechobee Music and Arts Festival as well as music and live events as far reaching as Shaquille O’Neal’s Big Game Weekend Party “Shaq’s Fun House”
Lomotif, the short form video platform, was acquired by Vinco Ventures and Zash Media through their joint venture entity ZVV Media. This acquisition makes ZVV Media, now a subsidiary of Vinco Ventures Inc., one of the most powerful global short form media companies in the marketplace. Combing the Zash Media ecosystem of over 100 million global active users across their media properties with Vinco’s digital assets and their latest AdRizer acquisitions, ensures that customer acquisition is very scalable, while keeping acquisition costs (CAC) to a minimum.
Given all of this, let now have a look at what BBIG price target could be after the merger with Zash Media. Given that most of the growth for Vinco Venture and Zash will come through scaling their platform and sign up more user across the 200 countries they are operating in, leveraging both companies media properties and monetization assets should result in great cost and growth synergies post merger. Not only will it become much cheaper to attract new user through the various app and platforms that both Zash and Vinco own traffic will also be highly more lucrative as monetization strategies aided by the AdRizer acquisition will be much more effective.
Overall, we believe the merger between Vinco Venture and Zash Global Media will the highly accretive and will set the combined company on a strong multiyear growth path and we should be surprised to see BBIG share price go back to the highs of 2021 and will give it a price target of $5+ after the merger.
As always this is not financial advise and given that BBIG very low market cap of under $200m right now, this is a high risk investment that you should only consider after you have done you own due diligence. If you found this useful, please don’t forget to leave comment below, follow us on social media, give us a like or subscribe to our newsletter and secure one of our first slot on our YouTube channel, which is due to launch in November.