Vinco Ventures (NASDAQ:BBIG) stock is trending on social media today, and the shares are down about 12%. The decline is due to a report that a deal pursued by its joint venture to acquire the National Enquirer had “collapsed.”
Vinco disclosed in a June 12 Securities and Exchange Commission (SEC) filing that it had decided not to go through with the deal because doing so “wasn’t in its best interest,” The Wall Street Journal reported.
BBIG had previously said that the joint venture it had formed with Icon Publishing would buy the National Enquirer, a gossip publication.
In 2019, James Cohen, described by The Journal as “a magazine distributor,” had agreed to purchase the Enquirer, but that deal also got scuttled.
What’s Going on With BBIG Stock?
Earlier this year, BBIG pitched the Enquirer deal, along with its intention to buy other similar publications, as the main features of its strategy going forward. In previous years, the company had been heavily involved in crypto. Lomotif, a website that it owns, had been portrayed by some as a viable, legitimate competitor to TikTok.
Importantly, it appears that the company has not filed official financial results for any period after the third quarter of 2022.
What Investors Should Watch Going Forward
Vinco’s previous ventures appear to be on the back burner, and now its most recently articulated strategy seems to be up in the air too. Further, the company has not released any financial results for a long time.
Investors who are considering buying BBIG stock should evaluate if Vinco is getting back on track strategically and how successful its approach is likely to be going forward. They should also realize that this name is quite risky. Indeed, there are huge question marks about its strategy and finances.
On the date of publication, Larry Ramer 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.
