Vinco Ventures (NASDAQ:BBIG) has finally closed a longstanding acquisition. The holding company and popular meme stock announced yesterday that it finalized its purchase of “all ZVV equity interest of ZVV Media Partners.” This deal is a joint venture with Zash Global Media. It means that Vinco’s holdings now include Lomotif, a TikTok rival with global reach. Unlike its more popular competitor, Lomotif isn’t constantly embroiled in controversy. But even the closing of a deal that has taken so long to finalize isn’t helping BBIG stock. Shares have been volatile since the news broke and have spent the day trending downward. As of this writing, they are down more than 9%.
Let’s take a closer look at what the closing of this deal means for Vinco.
What’s Happening With BBIG Stock?
The recent plunge in BBIG stock is very bad news for investors. Vinco shareholders believed that this acquisition would be the catalyst the stock needed to finally turn around. In 2021, InvestorPlace contributor Mark Hake noted that the company had the potential to increase in value as the deal to acquire Lomotif progressed. But since BBIG is currently down more than 72% for the year, it’s safe to say that hasn’t happened.
Now that the deal is finalized, it’s clear that markets aren’t responding well to it. With BBIG stock failing to even pop, it isn’t hard to see that Vinco has nowhere to go but down. Some may suggest that Lomotif may still help boost Vinco if the proposed bans on TikTok progress into signed bills. But even if that happens, it likely won’t be enough to save the unstable company from the path it is on.
BBIG stock has been ranked among meme stocks to sell because it has failed continuously to generate any real growth, despite high interest from investors. When it did rise in 2021, it did so on superficial hype. Today’s news should remind even contrarian investors that Vinco is not a stock to bet on for 2023.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
