Ted Farnsworth, the U.S. financier who set in movement the meteoric rise of MediaPass, and early TikTok investor Jaeson Ma, are behind a pair of strikes which may create a brand new inventory market-listed brief video empire.
Zash International Media, which is backed by Farnsworth, Ma and Vincent Butta, have agreed plans to accumulate Lomotif, a Singapore-based music video sharing agency. That deal is being coordinated with the reverse merger of Zash Media into NASDAQ-listed Vinco Ventures.
Their pitch is that Zash-Vinco will turn into a pure-play social video agency that may be in contrast with the Bytedance-owned TikTok, the NASDAQ-listed Bilibili, or Kuaishou, the direct competitor of TikTok’s sister operation Douyin in mainland China. Loss-making Kuaishou just lately listed in Hong Kong and noticed its shares triple inside a month, giving it a present market valuation of $190 billion.
The phrases of Zash’s acquisition of Lomotif weren’t disclosed. Nor was Lomotif’s month-to-month common customers (MAU) base, a regular measure of scale in tech. As an alternative, it stated that Lomotif has been accessed by 160 million lifetime viewersand 120 million lifetime creators. It at the moment boasts upwards of 300 million video views per 30 days, principally in Asia, and common engagement of greater than 90 minutes.
Vinco, beforehand often known as Edison Nation, has a handful of media ventures together with Honey Badger Media and social influencer Pop Nation. However lately it positions itself as an acquisition automobile someplace a SPAC and a shell firm. Its present market capitalization is lower than $5 million. However the acquisitions would enlarge it, and the proposed three-way deal would see Zash backers turn into Vinco’s controlling shareholders, and Zash and Lomotif turn into Vinco’s predominant parts.
“Lomotif is the important thing piece of the Zash technique to merge the best-in-class media, leisure and content-focused expertise firms globally,” stated Farnsworth in an announcement. “The platform is enjoyable and interesting and its options are distinctive and revolutionary. We look ahead to increasing the platform within the U.S. market and round the remainder of the world.” Lomotif founder and CEO Paul Yang is anticipated to remain on to guide Lomotif upon completion of the acquisition
“Having had expertise constructing one other video-sharing social networking platform, it grew to become shortly obvious that Lomotif’s patented expertise for mixing and video modifying is second to none,” stated Butta, a Triller board member. “Zash will focus Lomotif on an promoting mannequin going ahead, in addition to different technique of monetization over the following a number of months.”
“Lomotif is a worldwide platform with large following in Asia and Latin America and along with Zash, it would replicate that success within the US and different markets,” stated Ma. “In right now’s world of mass consumption of short-form content material, we see Lomotif’s addition to the Zash household as an unimaginable alternative to leverage our content material in all codecs and broaden our distribution platform worldwide.”
An in depth affiliate of MC Hammer, Ma is a musical artist and serial entrepreneur who headed East West Ventures and based 88 Rising. He additionally co-founded Stampede Ventures with Greg Silverman.
Funding financial institution BTIG represented Zash on the purchase aspect of the transaction. Palladium Capital served as advisor on the capital elevate to fund the transaction. The media and leisure group led by Tom Okay. Ara and together with Patrick Anding at regulation agency DLA Piper LLP negotiated and suggested Zash on the Lomotif deal and are additionally advising Zash in its merger with Vinco. Cooley LLP represented Lomotif within the transaction.