“Strike while the iron is hot,” the 15th-century proverb from the Medieval Times states. That’s what one New Jersey-based real estate firm that provides TikTok influencers with mansions has done through an unusual reverse takeover deal to go public.
On Nov. 12, West of Hudson Group Inc., the sole owner of “The Clubhouse,” a real estate portfolio of mansions in Southern California that houses top social media influencers with an estimated follower base of 90 million, was acquired by a shell company, Tongji Healthcare Group, Inc.
Subject to FINRA’s approval, “Tongji Healthcare Group, Inc.” will change its name to “Clubhouse Media Group, Inc.”
Called a “content house,” The Clubhouse operates a network of mansions with social media influencers living rent-free. There’s a catch – these influencers must give up a certain amount of revenues they collect from making videos about products.
Content houses have been an emerging trend in Los Angeles over the last year. Companies that run these unique properties, like The Clubhouse, are exploring options for sustainable business models. We’re surprised The Clubhouse didn’t excite the market with a special purpose acquisition company deal…
The Clubhouse is a network of three social media content creation houses (Clubhouse BH, Clubhouse Europe, and Not a Content House) that has received substantial press from top media organizations.
Not a Content House
Heading to the capital markets may be part of a broader strategy, but like any penny stock, the name of the game is to launch a promotion for the pump as company insiders liquidate their positions in the dump. The Clubhouse could find a flurry of 10-year old hedge fund managers on Robinhood that would purchase shares.
… maybe these influencers will pump the stock?
What a bizarro world for capital markets as tens of millions of Americans face food and housing insecurity.