TikTok headquarters are now publicly traded


The company, which is trying to make money at the headquarters of full of influential people TikTok, published on the stock exchange in an unusual way. This is about the former Chinese healthcare company, and if that sounds confusing, we can explain it.

Social media entrepreneurs were quickly looking for ways to make money for stars on popular platforms like TikTok. For example, the West of Hudson Group operates a network of content houses where many prominent young influencers live.

Houses like these function as management companies and take a percentage of the income from the creators who live in them. Influential people often do not pay rent, but produce branding content and promote products as a form of rental in kind.

Dozens of influence houses have arrived in the Los Angeles area over the past year, and the companies that run them are looking for sustainable business models. However, disclosure is a new strategy.

West of Hudson this week, it acquired Tongji Healthcare Group, an entity in Las Vegas that was founded by a Chinese hospital in 2006 but had no assets at the end of 2019.

The agreement was a reverse takeover, with a private company (in this case west of Hudson) already acquired by a public company (Tongji Healthcare) but ended under control. The agreement was concluded on Wednesday.

There were more maneuvers behind the scenes. Prior to the merger, Tongji was acquired by the investors who control West of Hudson, a New Jersey real estate operator named Amir Ben-Yohanan, and its business partners.

All that is added is that the combined company that requested the renaming of Clubhouse Media Group is now launched in the so-called rose leaf market, where small public and often speculative companies trade. Shares of Tongji closed at $ 2.30 on Friday, up 38 percent from August.

Extremely low priced stocks – known as penny stocks – are extremely volatile. While sophisticated investors may reject such risky investments, inexperienced investors, many of whom are active on online trading platforms such as Robinhood, have a taste for them and for companies that are full of trends in social media.

Content-influencing houses often revolve around drama. Many of them take only a few months before an internal conflict or dispute between talent and management leads to their disintegration. (In July, The New York Times reported that several content homes, including those owned by the West of Hudson, were shopping in reality show, using drama as a point of sale. None were sold.)

The Clubhouse, a house with primary influence in the West of Hudson network, was co-founded in March by Mr. Ben-Yohanan, Christian J. Young and Daisy Keech, influencing social media. Its first location in Beverly Hills has expanded into a network of influential settlements including Clubhouse Next, Clubhouse for boys, Clubhouse Malta and It is not a house of content.

However, it can be difficult to attract investors in public markets.

In the first six months of the year, West of Hudson had sales of nearly $ 96,000, but a loss of $ 983,000. According to a recent filing of securities, Mr. Ben-Yohanan, the company’s CEO, who controls 62 percent of the shares, has lent him just over $ 1 million. The company could draw almost $ 4 million more from it, according to a filing that also said Tongji said it might be necessary to raise money in the markets to finance operations and growth.

In an interview, Mr Young said the company was exploring capital raising opportunities in both the debt and stock markets, but declined to give further details.

According to Tongji, Mr. Ben-Yohanan founded West of Hudson Properties, a New Jersey real estate company that owns or manages more than $ 300 million in multi-family real estate. He is listed as a tenant of Clubhouse’s two main properties, according to a submission that added: “While Mr. Ben-Yohanan intends to assign these leases to the Company in the future, there is a possibility that Mr. Ben-Yohanan may not assign these leases in the near future or at all. “

A call to the west from Hudson Properties requesting a comment from Mr Ben-Yohanan was not returned. In addition to being the CEO, he is listed as Tongji’s Chief Financial and Accountant.

In addition to finance, companies associated with social media trends are proving to be attractive among new, young investors. Zach, a 12-year-old investor who has established himself following on YouTube and Twitter, is one of many young people who have gotten into stock trading, mainly by watching videos on YouTube. “There are a lot more young people in the stock market than people think,” he said.

He trades in stocks under his parents’ names (tracking his use) through a British investment platform called Trading 212. He said he would have to look at the company’s financial data before determining if it was a healthy investment, but could see others his age interested .

“Most children who invest in the stock market are interested in new kinds of trends in social media and society like TikTok and want to invest in such things,” Zach said. According to him, the company, which is associated with important social media stars, is “one hundred percent something they would be interested in”.

Trading in cent shares rose sharply this year. After the Covid pandemic closed sports leagues earlier this year, many were frustrated sports bettors have moved to the stock markets. This shift coincided with a large-scale shift – originally promoted by the Robinhood trading application – towards lower trading fees, which further fueled speculation of cheaper stocks.

However, such stocks often have bleak business prospects and weak management teams. And with little professional trading activity or analysis, penny stock prices are volatile and driven by rumors and speculation in online discussion forums, with little interest in the basic probability of making money.

According to the New York Stock Exchange, by October the price of approximately 23 percent of the shares traded on US stock markets was below $ 5. In the same period in 2019, they accounted for approximately 14 percent of trades.

Like it? Share with your friends!



Your email address will not be published. Required fields are marked *