West of Hudson Group, which operates a network of houses where TikTok influencers live and perform, went public last week, the New York Times reported.
Tongji Healthcare Group, a Las Vegas-based entity incorporated by a Chinese hospital in 2006, acquired the company and has moved to rename the new entity Clubhouse Media Group, according to the Times.
On Friday, Tongji’s stock closed at $2.30, 38 percent below its August high.
What’s happening behind the scenes is a bit more complex: Tongji was previously acquired by Amir Ben-Yohanan, the founder of West of Hudson Properties — a property management firm based in Hackensack, New Jersey — and his business partners. In a way, Ben-Yohanan and his partners used Tongji as a vehicle to bring West of Hudson into the public market.
West of Hudson’s Clubhouse, the primary influencer house in Beverly Hills, was founded in March by Ben-Yohanan, Christian J. Young and social media influencer Daisy Keech. The network has expanded to four additional properties, according to the Times.
Party houses in Los Angeles and their residents have come under fire for hosting raucous parties and encouraging unsafe behavior during the pandemic. In August, L.A. mayor Eric Garcetti said he would authorize the city to cut power and water to those houses, and legislators in the city proposed steep fines and other penalties for homeowners who allow the parties to happen.
The properties used as TikTok mansions are often spec houses, according to Bloomberg News, and can rent for as much as $50,000 per month.
[NYT] — Akiko Matsuda