Khaby Lame’s $6.6 billion stake in Rich Sparkle Holdings has sparked market volatility and investor scrutiny, highlighting both the influence and risks of social media-fueled business deals.
TikTok Star’s Deal Sends Rich Sparkle to Record Valuation
TikTok superstar Khaby Lame has made headlines once again, but this time it’s not for his viral videos—it’s for a nearly billion-dollar business deal that has sent shockwaves through the financial world. On January 15, Hong Kong-based Rich Sparkle Holdings (ANPA) reached a peak market valuation of $16.3 billion after acquiring Lame’s Step Distinctive Limited in a $975 million all-stock transaction. Lame’s 41% stake in Rich Sparkle briefly put his net worth at an astonishing $6.6 billion, based purely on the stock’s sky-high price.
The deal, announced in early January, promised a “structured, exclusive, full-chain, platform-style commercialization system” around Lame, including the creation of an “AI Digital Twin” of the TikTok star. Rich Sparkle’s stock surged over 650%, reaching $180.64 per share, despite the company’s modest revenue of under $6 million in 2024 and a small IPO just six months prior. With limited disclosure requirements for foreign firms, it remains unclear whether Lame himself sold any shares or profited directly from the spike.
Experts Sound the Alarm
Experts have been quick to flag potential problems with the deal. Securities attorney Brenda Hamilton called the stock activity “very suspect,” noting that Rich Sparkle had radically shifted its business focus less than a year after filing its IPO prospectus. “They issued large amounts of shares that resulted in a change of control,” Hamilton said, adding that due diligence for foreign issuers is extremely difficult. Fellow attorney Ron Geffner suggested that the valuation was heavily reliant on Lame’s TikTok following rather than the company’s fundamentals. Laura Posner, a securities litigation partner, described the trading pattern as resembling a pump-and-dump scheme.
The Chinese Stock Promotion Concern
Prominent short-seller Jim Chanos also weighed in, calling the surge “completely like a Chinese stock promotion.” Such promotions often inflate the stock of little-known firms through hype, creating enormous paper valuations that insiders can benefit from while late investors face steep losses. Indeed, Rich Sparkle’s stock has since fallen 77% from its peak, closing recently at around $41 per share, raising serious questions about the stability of the market’s confidence in the company.
Who Is Khaby Lame?
Lame, born in Senegal and raised in Italy, has never been shy about building his personal brand. With over 160 million TikTok followers and 78 million on Instagram, he has become one of the world’s most influential social media creators. Forbes ranked him No. 10 on its 2025 list of Top Creators, with estimated annual earnings of $20 million. Yet even as his fame skyrockets, Lame’s role in Rich Sparkle’s market frenzy has left investors uncertain, as the company has yet to file certain SEC documents confirming the deal’s closing.
A Closer Look at the Companies
The companies involved have murky histories. Step Distinctive Limited was incorporated in the British Virgin Islands just before Rich Sparkle’s IPO, while Pink13 Group Inc., another major shareholder, has undisclosed ownership. Rich Sparkle’s auditor resigned abruptly in December 2025, though no disagreements were publicly disclosed. The IPO itself was underwritten by Eddid Securities USA, which has a track record of sponsoring volatile listings. Critics say these connections further muddy the transparency of the deal.
Khaby Lame Stays Focused on Content
Despite the controversy, Lame remains focused on his craft and audience. In an Instagram post, he said he was “very excited to be a shareholder and looking forward to doing great things!” In interviews, he encourages fans not to rush into monetization, emphasizing the importance of creating content they enjoy. While the deal may have raised alarms among financial experts, it also highlights the growing power of social media stars to influence markets and command enormous valuations—even if questions remain about sustainability and regulatory compliance.