Clubhouse Media Group Inc (OTCMKTS:CMGR) continues to impress with rapid growth and expansion. The company is a pure-play social media influencer-based marketing solution that leverages a massive reach and strong proprietary technology to provide brands with access to expanded visibility and targeted marketing in the social media influencer space.
There may be no other competing publicly traded pure-play out there that has any real traction. At least, if there is, we haven’t found it.
Hence, CMGR may be racing in pole position in what amounts to a new and highly promising marketplace for public market investors. And racing in pole position in an emerging strategy that could be poised to eventually dominate a multi-billion-dollar global industry is nothing to sneeze at.
We would note that there were a few attempts as of several weeks ago to cast the stock’s strength as somehow about a case of mistaken identity (with the Clubhouse social platform/app), but these explanations can probably be dismissed at this point given the narrative now emerging about the stock.
In short, Clubhouse Media Group is an active commercial entity in the marketing and ad-tech space with a vast and rapidly growing reach that has already blown past 100 million followers in aggregate among its signed influencers.
The company has already signed a number of major global brands in client marketing deals, acquired market-leading AI ad technology, increased its reach through A-list celebrity influencer additions, and expanded into new markets, including the massive Las Vegas marketplace.
But this week, the company made another interesting move that could add substantially to its cache among investors.
A Diversified Social Media Strategy
A new angle on Clubhouse Media Group Inc (OTCMKTS:CMGR) is starting to emerge over recent days that could further drive interest in the stock.
Specifically, the company appears to be branching into a multi-channel-network (MCN) strategy spanning social media platforms. This narrative emerged this week with the company’s announcement that it has signed a non-binding Letter of Intent to acquire “The Tinder Blog”, one of the largest and most successful Instagram meme accounts in the world. The Tinder Blog is also an official partner of Facebook, according to information from the company.
This would be huge because it would not only represent a high-growth, high-margin pursuit, but also one that is adjacent to the company’s current strategic exposure, diversifying its investment profile within its zone of expertise.
As noted in the release, The Tinder Blog boasts over 4.2 million followers accrued over its six-year existence and an annual net income in excess of one million dollars on more than one billion web impressions per month. The Tinder Blog has also attracted major advertisers, including McDonald’s, Amazon Prime, Dunkin Donuts, and Samsung, among others. The Tinder Blog was founded and cultivated by Joseph Yomtoubian, a Los Angeles native, MBA, and finance consultant who launched the page in 2015.
“This is a significant deal for Clubhouse because we have been actively looking to expand our reach beyond traditional influencers to incorporate and reach more channels, niches, and outlets in the social media landscape,” commented Chris Young, Co-Founder of Clubhouse Media Group. “Joseph is a wealth of knowledge that can’t be taught. He is widely regarded as a leading Instagram and social media expert. We feel The Tinder Blog is an ideal match that offers tremendous complementarity within the constellation of our current social media reach and Intellectual Property portfolio. The Tinder Blog’s evergreen content creates a natural long-tail business. Combined with hyper-loyal fandom, these aggregator accounts make for highly sustainable and scalable businesses that complement our mission and portfolio.”
To say this move for Clubhouse Media Group Inc (OTCMKTS:CMGR) is “within its zone of expertise” is an important point. If a grocery store chain acquired a biotechnology research firm, one might have grave doubts about its ability to extract potential value.
But CMGR is loaded with expert knowledge applicable to the social media marketing space. Investing in an MCN strategy with leading assets holds the potential to powerfully complement its existing strategic footprint.
We would also note that the concept of “expertise” extends to AI assets. In this case, CMGR’s acquisition of Magiclytics is material to its latest move.
Simply put, Magiclytics is “the world’s first Revenue Prediction Software platform for influencer-based marketing.” Its AI engine has processed billions of social, demographic, and financial data points to optimize influencer campaigns and give brands meaningful insight into the ROI they can expect from an influencer before spending.
However, it also now holds even greater value: it’s the perfect lens through which to evaluate potential acquisition targets in the course of assembling a multi-channel-network asset portfolio in the social media space.
COMPENSATION DISCLOSURE: Section 17(b) of the 1933 Act requires publishers to disclose who paid them, the amount, and the type of payment. In order to be in full compliance with the Securities Act of 1933, Section 17(b): Tiger Global Management Partners LLC has compensated a third party to produce and present weekly content for various companies for the publication. For more information, please click here. In addition, this article is part of JournalTranscript.com Networks. JournalTranscript and network websites have not been compensated for distribution of this content. Read the JournalTranscript.com Networks Disclaimer