Vinco Ventures (NASDAQ:BBIG) has failed to secure its new deal with the National Enquirer.
A deal to sell the National Enquirer, the scandal-plagued supermarket tabloid that facilitated a hush-money scheme involving former President Donald Trump, has collapsed, per WSJ.
Vinco Ventures agreed in February to buy the National Enquirer and other publications but said that the transaction wasn’t in the company’s best interest according to a securities filing dated June 12.
As a result, the purchase agreement expired.
“Vinco and its partner, Icon Publishing, had formed a joint venture—VVIP Ventures—to purchase both the U.K. and U.S. version of the National Enquirer from magazine publisher a360 Media, the companies had said in February.
The deal, terms of which weren’t disclosed, also included the National Examiner and the Globe.
The Enquirer helped bury stories that were damaging to Trump when he ran for president in 2016.
The publication was owned by American Media at the time.
In 2019, American Media agreed to sell the Enquirer to James Cohen, a magazine distributor, for $100 million, but the deal never closed.
In 2020, American Media consolidated with Accelerate360, a Georgia-based logistics and distribution business, and was renamed a360 Media,” said WSJ.
On Friday, shares of the company rose more than +56% where volume also soared more than 38x its average trading volume.
BBIG stock is currently down more than -79% this year-to-date and more than -91% in the past year.
Latest Vinco Ventures News
Vinco Ventures recently announced the resignation of 3 board members.
On June 27, 2023, Richard Levychin resigned as a Board member effective immediately.
That same day Lisa King also resigned as a Board member effective on June 28, 2023.
On June 29, 2023, Brian Hart resigned as a Board member effective immediately.
Street Insider reports that none of the resignations were as the result of any disagreement with the Registrant, its management, the Board or any committee of the Board, or with respect to any matter relating to the Registrant’s operations, policies or practices.
“We believe the board of directors intentionally failed their fiduciary responsibility and have colluded to execute harmful and self-dealing actions that have caused a 99 percent decrease in shareholder value,” Christopher Muntz, one of the shareholders named in the lawsuit, told the Las Vegas Review-Journal.
The next hearing in the latest BBIG lawsuit will take place on July 15 or 16 according to Shad Vick, a Vinco Ventures investor and plaintiff.
Vick says he’s not jumping to any conclusions but that in his opinion, jumping ship without making shareholders whole is “dangerous at best”.
Attorney David A. Katz has stated in the past that resigning from the board of directors of a troubled company may not be a simple matter.
Often times, in doing so, the directors of the company may have breached their duty of oversight which may lead to facing personal liability in trial.
Are you invested in BBIG? Leave your thoughts in the comment section of the blog below.
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