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Khaby Lame, the Senegalese-born comedian whose silent, expressive videos turned him into the most-followed human on TikTok, is now at the centre of one of the market’s most talked-about deals.
A nearly $1 billion all-stock transaction involving his company, Step Distinctive Limited, and Hong Kong-based Rich Sparkle Holdings briefly pushed the firm’s valuation to $16.3 billion and placed Lame’s personal stake at about $6.6 billion on paper. The surge catapulted the social media star into billionaire conversations almost overnight.
But just as quickly as the valuation soared, it stumbled, triggering concerns among legal and market experts who say the numbers raise uncomfortable questions.
Rich Sparkle disclosed in a January 9 filing to the U.S. Securities and Exchange Commission that it planned to acquire Step Distinctive Limited, an entity tied to Lame’s commercial operations. Two days later, the company announced the $975 million transaction had closed.
Under the structure of the deal, Lame, who owns 49% of Step Distinctive, became a controlling shareholder in Rich Sparkle, translating into an estimated 41% indirect stake in the Nasdaq-listed firm.
Rich Sparkle said the partnership would build a comprehensive commercialisation platform around Lame’s brand, including merchandising, licensing, and digital products, as well as an “AI digital twin” designed to replicate his likeness.
A Stock Surge Fueled by Star Power
Following the announcement, Rich Sparkle’s shares exploded, climbing more than 650% within days. On January 15, the stock peaked at $180.64 per share.
At that level, Lame’s stake was valued at approximately $6.6 billion, instantly placing him among the world’s wealthiest entertainers on paper.
Yet, the rally proved fragile. The stock soon collapsed, dropping as low as $41, about 77% below its peak, wiping out billions in market value.
Despite the frenzy, Lame kept his public reaction brief. Eleven days after Rich Sparkle announced the deal had closed, he wrote on Instagram:
“Congratulations to the team at ANPA. Very excited to be a shareholder and looking forward to doing great things!”
Neither Lame nor Rich Sparkle has provided further clarification on the transaction, and both have declined to respond to media requests.
