TikTok superstar Khaby Lame’s nearly $1 billion deal with Hong Kong-based Rich Sparkle Holdings (ANPA) catapulted the company’s valuation to $16.3 billion, momentarily making Lame’s stake worth $6.6 billion. The deal, announced in January, involved Rich Sparkle acquiring Lame’s Step Distinctive Limited in an all-stock transaction, with plans to build a “full-chain, platform-style commercialization system” around the social media star, including an “AI Digital Twin.”
A Look at the Mega Deal
Under the agreement, Rich Sparkle and its operating partners will hold exclusive rights to manage Lame’s global business operations for the next 36 months, according to Business Insider Africa. In turn, Lame, whose real name is Seringe Khabane Lame, will be a controlling shareholder in Rich Sparkle Holdings. Initially, the commercial strategy will concentrate on the United States, the Middle East, and Southeast Asia, with a rollout expected over the next three years.
The AI “Virtual Khaby” will be a hyper-realistic digital replica of Lame, authorized to use and monetize his likeness without his daily involvement. It will livestream, participate in interactive events, and create content across multiple platforms, while speaking multiple languages to reach a global audience. Using Lame’s facial biometrics, voice patterns, and signature reactions, the AI will replicate his charatistics. It will support brand endorsements, ad campaigns, TikTok Shop content, and in-game appearances.
Step Distinctive Limited is a British Virgin Islands-incorporated company, founded and led Lame, who was born in Senegal and raised in Italy since the age of one and granted Italian citizenship in 2022. Step Distinctive Limited manages his global brand, image, and commercial activities.
Rich Sparkle, which reported just under $6 million in revenue for 2024, is a financial printing and corporate services provider founded in 2016. It began trading on the Nasdaq Capital Market on July 8, 2025, and priced its initial public offering (IPO) at $4.00 per share, offering 1.25 million shares to raise approximately $5 million.
Despite the hype, Rich Sparkle’s stock skyrocketed over 650% and then drastically plummeted 77% within days. This is where many of the red flags come in and suspections of a pump-and-dump.
According to Investopedia, pump-and-dump schemes are illegal and manipulative tactics in which fraudsters artificially inflate the price of a stock or security, only to sell it at a profit.
Experts warn the deal raises red flags, noting the firm’s sudden pivot from printing financial materials to influencer-driven commerce and the stock’s extreme volatility, Forbes reported.
Lame, with more than 160 million TikTok followers and tens of millions on Instagram, commented on the deal only 11 days later, expressing excitement about becoming a shareholder. The SEC has not confirmed the deal’s closure, leaving uncertainties about its legal and financial status. Analysts note that the stock’s tiny public float, which was less than 5%, means Lame’s paper net worth is likely overstated, and real-world liquidity may be far lower. A public float in stocks is the number of a company’s shares available for trading by the general public. In this case, the float was unusually low.
Legal experts caution that the deal’s valuation relies heavily on Lame’s massive social media following rather than substantive business operations, Busness Insider Africa reported.
Lame’s rise, however, remains undeniably extraordinary. He became the most-followed TikToker in less than two years of joining the platform, transforming viral silent comedy videos into a global brand.
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