It had been nearly a year since MoviePass filed for bankruptcy, and Ted Farnsworth had made a comeback. The outspoken CEO had acquired MoviePass, turned its parent company into a meme stock, and oversaw its collapse. Now, he was back in the spotlight, talking about his latest venture on Fox Business.
In a January 2021 TV interview with Maria Bartiromo, Farnsworth discussed his new company, Zash Global Media and Entertainment, and its merger with Vinco Ventures. The press release announcing the deal described the founders as disruptive leaders in the entertainment industry, promising to build a “virtual Hollywood.”
Despite the success of the stock initially skyrocketing by 196%, Farnsworth’s history of takeovers and implosions raised concerns. Over the years, he had been involved with multiple businesses and publicly traded companies, all experiencing significant stock price increases followed by collapses.
His strategy involved leveraging his connections to raise funds, drive up stock prices with flashy announcements, and attract retail investors. Farnsworth’s charisma and storytelling abilities had previously drawn in investors, but ultimately led to financial losses for many.
Despite facing securities fraud charges and multiple lawsuits related to Vinco, Farnsworth continued his pattern of hyping up stocks with buzzwords and bombastic announcements. His ability to create stock volatility and generate enthusiasm was seen as a key factor in his structured-equity investments.
While some investors like Shadwrick Vick ended up losing significant amounts of money, others recognized Farnsworth’s manipulative tactics and predatory behavior. As his legal troubles mounted, it became clear that his pattern of takeovers and collapses may have finally caught up with him.
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