TIKTOK AND KUAISHOU RIVAL, LOMOTIF, SELLS TO ZASH Nasdaq:BBIG
The Lomotif platform is now one of the world’s leading apps for sharing social videos Final agreement gives ZASH majority stake
Bethlehem, PA and Singapore, February 23, 2021 (GLOBE NEWSWIRE) – Vinco Ventures, Inc. (NASDAQ: BBIG) ZASH Global Media and Entertainment Corporation (“ZASH”), Led by co-founders Ted Farnsworth, financier and former MoviePass chair, Early Musical.ly (now TikTok) investor Jaeson Ma, and early trill visionary and board member Vincent Butta, entertainment industry disruptor, has reached a definitive agreement agreed to acquire a majority stake in Lomotif Private Limited (“Lomotif”), Singapore-based top social media video sharing platform and an up and coming rival of TikTok and Kuaishou (1024.HK on the Hong Kong Stock Exchange). The completion of the Lomotif acquisition by ZASH is expected to coincide with the completion of the business combination of ZASH and Vinco Ventures, Inc. “Vinco”), Previously announced in a joint press release in January 2021. The completion of the Lomotif Acquisition is subject to certain customary closing conditions as set out in the definitive acquisition agreement.
After the merger between ZASH and Vinco, ZASH becomes a public company and majority shareholder of Vinco. This makes Lomotif one of the world’s leading social networking platforms for pure video sharing use, which is owned by a listed US company TikTok and Kauisho in the area.
ZASH believes that Lomotif has been one of the fastest growing video sharing social networking platforms in its category over the past three years. In Asia, Europe and South America, Lomotif increased its average monthly community by over 400 percent during this period. In the past, over 10 billion User Generated Content (UGC) clips have been used to create more than 740 million videos on the platform since launch.
The following additional data also shows the dominant global user traction and reach of the Lomotif platform that ZASH believes shows massive untapped value and potential growth for Lomotif:
- Over 10 billion Lomotif video atomic clips
- To date, over 740 million video superclips have been created
- Over 225 million installations worldwide (in more than 200 countries in more than 300 languages)
- More than 210 million lifelong communities
- Over 160 million viewers for life (iOS / Android)
- Over 120 million creators for life
- More than 300 million videos are viewed on the platform each month
- 90 minutes or more engagement with key users on average
Lomotif founder and CEO Paul Yang will continue to lead Lomotif after the acquisition is complete. “With the partnerships that ZASH has entered into and planned,” said Yang, “we naturally fit together. As an emerging player in the creation of user-generated videos, we are pleased to be part of ZASH’s general content and sales plans and strategies. and look forward to accelerating Lomotif’s growth and global adoption. “
“Lomotif is the key element of ZASH’s strategy to bring together the world’s leading media, entertainment and content technology companies,” said Ted Farnsworth. “The platform is fun and appealing. Their functions are unique and innovative. We look forward to expanding the platform in the US market and the rest of the world. “
“After building another social networking platform for video sharing, it quickly became clear that Lomotif’s patented video mixing and editing technology was second to none.” said Vince Butta. “ZASH will focus Lomotif on an advertising model and other means of monetization over the next few months.”
“Lomotif is a global platform with a huge fan base in Asia and Latin America and, together with ZASH, will repeat this success in the US and other markets,” said Jaeson Ma. “In today’s world of mass consumption of short-form content, we see Lomotif’s addition to the ZASH family as an incredible opportunity to take our content in all formats and expand our distribution platform worldwide.”
The investment bank BTIG represented ZASH on the buyer side of the transaction. Palladium Capital Group, LLC advised Vinco on the capital increase to fund the transaction. The media and entertainment team headed by Tom K. Ara, which also includes Patrick Anding from the law firm DLA Piper LLP, negotiated and advised ZASH on the Lomotif deal and also advises ZASH on the merger with Vinco. Cooley LLP represented Lomotif on the transaction.
You can find more information about the planned merger of ZASH with Vinco in the press release (https://investors.vincoventures.com/press-releases/detail/78/musical-ly-tiktok-triller-and-moviepass-innovators-unite) . and Vincos 8-K, filed January 19, 2021 (https://sec.report/Document/0001493152-21-001470/).
About ZASH Global Media and Entertainment Corporation
ZASH Global Media and Entertainment Corporation is an evolving network of synergy companies working together to disrupt the media and entertainment industry as we know it today. The ZASH team is led by a group of clever, if not somewhat brazen, accomplished disruptors. ZASH believes that the management team has an exceptional and unprecedented ability to pan, as their knowledge and experience are unwavering and adamant. For more information about ZASH Global Media and Entertainment Corporation, please visit the ZASH website at www.zash.global.
Lomotif is the leading social media video sharing platform that democratizes video creation. Since the company was founded by video enthusiast Paul Yang in 2014, Lomotif has been granted three technology patents that focus solely on enabling developers to easily share and view short videos through remix and collaboration. Yang’s bold vision is to build the world’s largest video vocabulary to accelerate the global transition to video-first expression. Lomotif, available in Apple and Google stores, is a groundbreaking downloadable app covering hip hop, rap, and urban culture in the United States and Latin America. Lomotif is one of five partners selected by Snapchat for two-way integration to share stories between the two platforms. For more information about Lomotif Private Limited, please visit Lomotif’s website at www.lomotif.com.
About Vinco Ventures, Inc.
Vinco Ventures, Inc. (NASDAQ: BBIG) is a merger and acquisition company focused on digital commerce and consumer brands. Vinco’s BIG (Buy. Innovate. Grow.) Strategy looks for acquisition opportunities that are scalable and increases those acquisitions through targeted traffic and content campaigns. For more information, see Vinco’s investor presentation or visit Investors.vincoventures.com.
Forward-Looking Statements and Disclaimers
This press release contains “forward-looking” statements within the meaning of the federal securities laws. Forward-looking statements include, but are not limited to, statements regarding future financial performance, expected product performance and functionality of ZASH products or products that contain ZASH products, and industry trends and growth opportunities that will affect ZASH. This information is based on beliefs and information currently available to ZASH management, as well as estimates and assumptions made by ZASH management. These statements can be identified by the fact that they do not relate exclusively to historical or current facts. As used in this presentation, the words “estimate”, “expect”, “intend”, “believe”, “plan”, “anticipate”, “project” and other words or the negative of these terms and similar expressions are used in relation to ZASH or ZASH uses Management identifies forward-looking statements. These forward-looking statements contain statements about the potential business synergies resulting from the acquisition of Lomotif by ZASH and the planned merger of ZASH with Vinco, the potential market for the product range of ZASH and Lomotif, customer acceptance and the use of the Lomotif platform and ZASH’s ability to monetize product offerings, including the Lomotif platform. These statements and the other forward-looking statements in this press release reflect ZASH’s current view of future events and are subject to risks, uncertainties, assumptions and other factors relating to the industries, operations and results of operations of ZASH and Lomotif and any dealings that could be assumed by ZASH If at least several of these risks or uncertainties materialize or if the underlying assumptions prove to be incorrect, the actual results may differ materially from the expected, assumed, estimated, expected, intended or planned results. Although ZASH believes that the expectations contained in the forward-looking statements are reasonable, there can be no guarantee of future results, performance or success. All forward-looking statements are qualified in their entirety by this cautionary statement. ZASH is providing this information as of the date of this publication and assumes no obligation to update any forward-looking statements in this press release as a result of new information, future events or otherwise.
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Dennis Dembia / R & CPMK
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Jason Magner / R & CPMK
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