Vinco Ventures (NASDAQ:BBIG) stock is up more than 10% today after the company announced that VVIP Ventures, a joint venture between Vinco and Icon Publishing, will acquire the U.S. and U.K. editions of the National Enquirer, the National Examiner and Globe from a360 Media in a cash deal. Other financial terms of the transaction were not immediately disclosed, although Vinco will be provided with a 90-day period to discuss other potential business deals with a360.
The National Enquirer is a celebrity gossip magazine with more than 95 years of archived content. The company offers both a digital and print version of its magazine. Both the print and digital versions cost $2.69 per issue or $139.88 per year under a yearly plan. A six-month plan is available as well, costing $3.32 per issue or $86.32 for six months.
Vinco explained the following about the deal in a press release:
“VVIP Ventures will continue to create and publish exclusive celebrity news and content under the banner of these brands with the help of the existing editorial team which will transition over and will leverage Vinco’s cross-platform content and advertising partnerships through its existing digital platforms — including Lomotif, AdRizer, Mind Tank, Magnifi U and Honey Badger.”
BBIG Stock Rises on Acquisition News
The acquisition of these publications will be Vinco’s first step under its mergers and acquisitions growth strategy to become a global celebrity content publisher. Furthermore, the acquisitions will help aid Vinco’s plan of generating revenue and long-term profitability.
VVIP will acquire the print and digital asset rights from the three publications, while the editorial teams of the publications will join VVIP. Following the close of the acquisitions, VVIP will enter into a multi-year service agreement concerning “publishing, financial and distribution services with a360 Media.” The closing of the transaction will be subject to customary conditions and certain consents.
Executive Chairman Rod Vanderbilt believes that Vinco’s digital platforms will provide synergy towards maximizing the revenue of the three publications. Vanderbilt also believes that Vinco will help increase the reputation and reach of the publications. Specifically, the implementation of AdRizer into the publications could create new advertisement monetization opportunities.
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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.