Khaby Lame, famous for silent videos that cross language and cultural barriers, has struck gold. On 11 January, Rich Sparkle Holdings confirmed that it had completed a $975-million (nearly ₹9,000-crore) deal to acquire Step Distinctive Limited, founded by the TikTok star. Rich Sparkle is a Hong Kong-based company listed in the US.
The transaction was first reported to the US Securities and Exchange Commission (SEC) on 9 January. The acquisition marks a shift from short-term brand partnerships to a structured, platform-led business model.
The deal also includes making an AI version of Khaby Lame using his face, voice and style. This digital version will create content in many languages. It will work across different time zones, helping him reach more people simultaneously.
According to SEC filings, Lame owned 49% of Step Distinctive Limited before the sale. Now, he has reportedly become a controlling shareholder of Rich Sparkle.
“This is not just an equity acquisition, but a revolution in the global content e-commerce model. We will perfectly combine Khaby Lame’s global influence with the ‘industrialized e-commerce operational capabilities’,” Rich Sparkle said in a statement.
Khaby Lame has a combined global following of about 360 million. Rich Sparkle views Khaby as a rare creator who can drive value across markets worldwide since he doesn’t depend on language.
Soon after the deal news, Rich Sparkle’s share price surged by more than 650%, touching $180.64 on 15 January.
According to Forbes, on paper, Khaby Lame’s net worth rose by $6.6 billion ( ₹60,510 crore) due to the rise in stock prices. The calculation was based on his indirect holding in the company. However, because of limited disclosure rules for foreign firms, it is unclear whether he sold any shares when the prices reached an all-time high.
Then, Rich Sparkle’s share price crashed by 77%. As of 31 January, the stock is trading at $83.00. However, it is still well above its pre-deal price, which was around $24.
Rich Sparkle listed on Nasdaq only six months earlier, in July. It raised money by selling 1.25 million shares at $4 each. Its 2024 revenue was under $6 million.
‘Red flag’
The company’s sudden change in direction, sharp rise and steep fall to around $41 have raised “red flags” among critics.
According to Jim Chanos, the deal looks like a “Chinese stock promotion”. It is a market manipulation pattern where little-known companies artificially inflate their share prices. Such companies typically have ties to China.
“The whole thing just seems nuts,” Forbes quoted the founder of Chanos & Company as saying.
Cohen Milstein’s Laura Posner says, “I’ve only seen that kind of chart in a pump and dump scheme.”
“It’s very suspect,” attorney Brenda Hamilton commented on Rich Sparkle’s IPO.
There is uncertainty over whether the deal has formally closed, Forbes says. Rich Sparkle has not filed a confirmation with the US SEC after its announcement.
Legal experts say this raises serious questions. Some believe the valuation relies heavily on Lame’s TikTok popularity, sparking concerns over transparency and investor risk.
“It leaves a lot of questions to be answered. It appears that the valuation is predominantly based on Khaby Lame’s following on TikTok,” attorney Ron Geffner told Forbes.
ICE action on Khaby Lame
Amid tighter immigration enforcement under President Donald Trump, Khaby Lame was detained by US immigration officials in Las Vegas for allegedly overstaying his visa.
US Immigration and Customs Enforcement (ICE) confirmed in June 2025 that Lame had been stopped at Harry Reid International Airport. He was later allowed to leave voluntarily without a deportation order.
A voluntary departure allows individuals to leave without a formal deportation record. That helps them avoid long-term re-entry bans.
The Senegalese-Italian citizen entered the US in April 2025 and stayed beyond the permitted visa period. He did not comment publicly on the incident.
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