ZASH Global Media and Entertainment announced the completion of its acquisition of Lomotif Private Limited Friday morning.
What Happened: The acquisition of Lomotif is complete through a joint venture of ZASH and Vinco Ventures BBIG through the joint venture ZVV Media Partners.
ZASH will be a public company and the controlling shareholder of Vinco at merger close. The merger makes Lomotif one of the top global pure-play video sharing social networks owned by a public U.S. company.
Lomotif is a Singapore-based company that competes with companies like TikTok and Kuaishou.
Why It’s Important: The combination creates a portfolio of powerful media and entertainment combined with one of the top short-form video platforms. The company will have short-form videos combined with user-generated content.
Lomotif has 31 million on-platform monthly active users and over 225 million downloads in over 200 countries. Over 300 million videos are watched on Lomotif each month, according to the companies.
“You’ve Been Scouted” is a new format talent discovery global competition for a recording competition from Lomotif. The series combines elements of top reality music competitions with user-generated content.
A third party valuation shows the value of the combined ZASH and Lomotif units at $5 billion based on SensorTower data.
What's Next: Lomotif will change its name to LoMo and complete a full rebranding and repositioning campaign in North America. Lomotif is also expanding in India, a country with over 350 million social media users that can't use the banned TikTok app.
Lomotif has content deals in place with Facebook Inc FB, Instagram and Snap Inc SNAP.
BBIG Price Action: BBIG closed Thursday down 9% to $3.37.
Earlier Friday, Vinco Venture filed an S-1 that showed registration for about a 44 million share common stock offering via selling shareholders.
Photo: courtesy of Facebook.
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