Vinco Ventures (NASDAQ: BBIG) needs to get its act together sooner rather than later as a bill to ban the video-sharing app TikTok from being downloaded on U.S. devices was introduced in Congress on Wednesday by Republicans Sen. Josh Hawley and Rep. Ken Buck.
Vinco Ventures said it completed the acquisition of Lomotif (TikTok rival app) December last year. They announced the purchase of all ZVV equity interest of ZVV Media Partners, a joint venture with ZASH Global Media, including TikTok rival Lomotif.
Although pundits argue that, Facebook/Instagram owned by Meta Inc (NASDAQ: META) would benefit the most from this; one fails to understand that Lomotif is the only popular app that directly competes with TikTok. TikTok style videos are only a part of other social media apps.
A proposal to ban TikTok on non-government devices in the U.S., led by Senators Hawley and Buck, faces a difficult path forward, despite a previous ban on government devices passing as part of a $1.7 trillion funding bill. This proposal goes further than a separate bill introduced last year by bipartisan House members Rubio, Gallagher, and Krishnamoorthi. Several state legislatures have also passed bans on TikTok on government-issued devices.
Lomotif, now owned by Vinco Ventures, has the potential to replace TikTok, if TikTok were to be banned nationwide. However, poor management from the executives at Vinco Ventures is hindering its growth. Despite having a dedicated group of retail investors who believe in its success, Lomotif is struggling. With Adrizer, there is technically no reason for this, but it is happening. Therefore, the executives at Vinco Ventures need to take action soon to avoid missing out on a major opportunity.