Vinco Ventures (NASDAQ:BBIG) was thrust into the spotlight after lawmakers recently unveiled a bipartisan bill that seeks to ban popular Chinese short-video platform TikTok in the U.S. Senator Marco Rubio and House Representatives Mike Gallagher and Raja Krishnamoorthi introduced the bill.
The bill comes after years of concern from administrations under former President Donald Trump and President Joe Biden that the Chinese government could possibly be using the platform to spy on U.S. citizens and their data. ByteDance, TikTok’s owner, could be forced to give the Chinese government U.S. user data if it requests it. TikTok has previously stated that U.S. user data is stored outside of China.
It isn’t just TikTok under fire. The bill seeks to ban “all transactions from any social media company in, or under the influence of, China, Russia, and several other foreign countries of concern.”
This can be seen as a positive for BBIG stock, as Vinco operates Lomotif, a short-video platform that competes with TikTok. However, internal management problems have delayed key updates to the platform. Let’s get into the details.
BBIG Stock: Lawmakers Seek to Ban TikTok
Since its inception in 2014, Lomotif has received over 225 million installations across 200 countries. In October, the platform launched the beta version of Lomo ads, which will allow it to offer “programmatic and automatic advertising.” The beta test ultimately seeks to provide revenue-sharing advertisement opportunities with content creators.
On Dec. 6, Former ZASH CEO Erik Finman tweeted out a letter to Vinco’s board. Among other requests, the letter asked the board to merge the remaining 40% of Lomotif into Vinco. It also stated that Vinco has not upgraded the platform or engaged in collaborations, such as a media tour, “during a vital time for such a product.” In response, Vinco issued a cease-and-desist letter to the former CEO. The letter asked Finman to publicly retract and correct his “false and misleading statements” by Dec. 9.
Finman has remained quiet about the situation on Twitter since the cease-and-desist letter. However, he tweeted out yesterday that he would host a Twitter Spaces call on Dec. 16 at 12:00 p.m. Eastern. BBIG shareholders will likely receive more news about his plans for Lomotif during the call.
On the date of publication, Eddie Pan 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.