{"id":601135,"date":"2026-04-23T07:13:21","date_gmt":"2026-04-23T07:13:21","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/601135\/"},"modified":"2026-04-23T07:13:21","modified_gmt":"2026-04-23T07:13:21","slug":"what-happened-to-tiktok-star-khaby-lames-975-million-deal","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/601135\/","title":{"rendered":"What Happened to TikTok Star Khaby Lame’s $975 Million Deal?"},"content":{"rendered":"

In January, Khaby Lame was on top of the world. The biggest creator on TikTok, with more than 160 million followers<\/a>, had just signed a deal with the Hong Kong-based printing firm Rich Sparkle Holdings reportedly worth $975 million \u2014 the ideal illustration of how far the creator economy has come.<\/p>\n

Just three months later, it\u2019s unclear if that deal is happening at all. The Senegalese-Italian Lame, best known for his Charlie Chaplin-esque silent comedy shorts, now largely disavows the investment company on his social media accounts amid a massive slide in Rich Sparkle\u2019s share price.\u00a0<\/p>\n

Initially, the Lame deal had all the makings of a dream success story: the world\u2019s most popular TikToker signs a deal with an under-the-radar company to license the rights to his AI-generated digital twin for nearly $1 billion. But, as experts told TheWrap, this is turning out to be a nightmare scenario for Lame, who may have been unintentionally dragged into a financial racket.<\/p>\n

\u201cI think this whole thing is a scam, to be honest,\u201d Henry Carter, managing partner at Jamestown Capital, told TheWrap. Carter deals with companies like Rich Sparkle Holdings \u201call day, every day,\u201d companies that have roughly $6 million in revenue. <\/p>\n

The situation is a sobering reminder to be wary when it comes to creators and big numbers. While an increasing number of popular YouTubers and TikTokers have struck deals for equity stakes in companies, the field is also rampant with influencers caught up in scams (think Hailey Welch, the \u201cHawk Tuah Girl,\u201d and her $HAWK cryptocurrency). <\/p>\n

In the days after the deal\u2019s announcement, Rich Sparkle\u2019s stock hit $150 a share, giving it a market cap of $1.8 billion.\u00a0As of Tuesday, it\u2019s worth $124 million, closing at $8.52.<\/p>\n

\u201cThe Khaby Lame\/Rich Sparkle deal is a textbook cautionary tale \u2014 a $975 million headline that has since collapsed 90%, with major brokerages restricting trading and no clear confirmation the deal even officially closed,\u201d added Alicia Weaver, vice president of media activation at media agency Mediassociates. \u201cThe mechanics map directly to a classic pump-and-dump.\u201d<\/p>\n

Under the original deal, Rich Sparkle would exclusively have access to the comedy creator\u2019s AI digital twin for 36 months, using the avatar on live streams and to sell products on TikTok Shop, just to name a couple of planned usages. The commercialization of Lame\u2019s likeness was predicted to be worth $4 billion in potential sales.<\/p>\n

Now, it seems as if this deal has stalled if not fallen apart. Since announcing its merger with Lame\u2019s Step Distinctive Limited, Rich Sparkle\u2019s stock has plummeted by more than 90%<\/a>. Though Rich Sparkle indicated that the deal had been \u201ccompleted\u201d in its January press release<\/a>, no filings have confirmed that\u2019s the case. In fact, a SEC filing from late March noted that the closing of the deal is contingent on certain conditions being met. <\/p>\n

@khaby.lame<\/a> <\/p>\n

Ig:@khaby00<\/p>\n

\u266c suono originale \u2013 Khabane lame<\/a> <\/p>\n

The love affair seems to have cooled on Lame\u2019s side as well. The creator removed Rich Sparkle\u2019s stock ticker (ANPA) from both his Instagram and TikTok bios. Similarly, no filings have indicated that Lame\u2019s company ever received the 75 million shares that the Rich Sparkle deal promised.\u00a0<\/p>\n

Adding to the smoke, stock trading institutions like ETrade, Merrill Lynch, Fidelity, Charles Schwab and Vanguard have all either blocked online trading of Rich Sparkle stock or put restrictions on it, as originally reported by Business Insider<\/a>. Interactive Brokers listed the stock as non-tradable.<\/p>\n

\t\t
\n\t\t\t\t\t\t\t\"TikTok\t\t\t\t\t<\/a><\/p>\n

Whether or not the deal actually goes through, it\u2019s also a test for a major economy that\u2019s still fairly young. Last March, MrBeast\u2019s Beast Industries was valued at $5 billion<\/a>. Can other creators reach those massive valuations without investing in as many businesses as Jimmy Donaldson has? It\u2019s also a deal that questions the value of all-stock offers and AI digital twins, a growing trend where AI avatars of celebrities are created and used for various purposes.<\/p>\n

\u201cMaking a $975 million equity-based bet on a very unproven technology, both technically and commercially, that feels problematic to me,\u201d Scott Sutton, CEO of the social and influencer marketing company Later, told TheWrap. \u201cThe creator economy is well understood. I would encourage creators to invest in established business models that help them promote their earning capability while creating healthy businesses.\u201d<\/p>\n

Representatives for Rich Sparkle Holdings and Lame did not respond to TheWrap\u2019s request for comment.\u00a0<\/p>\n

\t\t
\n\t\t\t\t\t\t\t\"\"\t\t\t\t\t<\/a><\/p>\n

A shocking deal<\/p>\n

When Edward Klaris, the managing partner at Klaris Law and CEO of KlarisIP, first heard of the deal between Lame and Rich Sparkle Holdings, he was surprised. Part of that shock came from the fact that, because it was all-stock, there was no guarantee Lame would be paid. But most of it came from Rich Sparkle Holdings itself.\u00a0<\/p>\n

Though Rich Sparkle is based in Hong Kong, it\u2019s registered in the British Virgin Islands. Prior to partnering with Lame, the company has no evidence of partnering with creators in any meaningful way, which is unusual in the creator economy. Typically, businesses make several smaller deals with creators to test out their social strategies before cementing major partnerships.<\/p>\n

\u201cFrom day one, I was like, \u2018What is this company?\u2019 It just didn\u2019t have any real earnings, and I couldn\u2019t tell what it really did. And I was surprised by how the deal wasn\u2019t strategic,\u201d Klaris said. \u201cIt wasn\u2019t a place that has historically done deals with creators and made them successful.\u201d<\/p>\n

Klaris wasn\u2019t the only one who was skeptical. \u201cI think, in the end, this is pump and dump. But I think there\u2019s actually a deeper story here,\u201d Carter said. \u201cHow did this thing even get on a stock exchange in the first place?\u201d<\/p>\n

\t\t
\n\t\t\t\t\t\t\t\"\"\t\t\t\t\t<\/a><\/p>\n

Aside from Rich Sparkle Holdings\u2019 very existence, Lame\u2019s valuation has left many perplexed. The potential revenue from sales from Lame\u2019s AI digital twin were estimated to be $4 billion \u2014 $1 billion less than the valuation of Beast Industries. And that corporation includes MrBeast\u2019s YouTube earnings, a thriving chocolate company, licensing deals for \u201cBeast Games,\u201d a toy line, the clipping company Vyro, a banking service and several other ventures.<\/p>\n

Sutton noted that the $4 billion prediction is devoid of \u201ctangible existing revenue streams.\u201d <\/p>\n

Klaris was more blunt.<\/p>\n

\u201cIt seems like a number out of the blue,\u201d he said.<\/p>\n

\t\t
\n\t\t\t\t\t\t\t\"\"\t\t\t\t\t<\/a><\/p>\n

Over the last several months, Rich Sparkle Holdings shares have been in free fall. An SEC filing from March 31 noted that the deal has not been completed and that its completion is dependent on a due diligence investigation and approval from the stock exchange.\u00a0<\/p>\n

Though Weaver likened the deal to a pump-and-dump scheme \u2014 a scam that involves perpetrators artificially inflating the price of a low stock through misleading statements only to sell it at a higher price \u2014 she doubted whether Lame was a knowing participant.<\/p>\n

Matt Grandchamp, senior vice president and head of revenue for NowThis, also doubted Lame had any knowledge of any ulterior motives. While working for Group Black, Grandchamp worked with Lame on the show \u201cKhaby Is Coming to America\u201d and praised the creator as a good businessman as well as a creator who seemed to really care about his audience.<\/p>\n

\u201cThis deal is kind of indicative of the creator economy and how the folks who are representing creators can sometimes not be experts in the field that they\u2019re actually doing deals in,\u201d Klaris said. \u201cI don\u2019t know what questions really were asked, but this [deal] seems surprising.\u201d<\/p>\n

@khaby.lame<\/a> Let\u2019s just use regular belt from now on \ud83d\ude2d #learnfromkhaby<\/a> #comedy<\/a> \u266c original sound \u2013 Khabane lame<\/a> <\/p>\n

The growing use of AI digital twins<\/p>\n

The deal also made headlines for its intent to create a digital double of Lame. AI avatars for celebrities have been around for a while. Paris Hilton<\/a> unveiled her digital twin in 2024, and last year IShowSpeed<\/a> used an AI avatar chatbot so that he could keep interacting with his audience during one of his 24\/7 livestreams. It\u2019s an emerging business<\/a> among some of the biggest creators, but it\u2019s also one that\u2019s largely been unproven.<\/p>\n

\u201cThe biggest knock [for this deal] is actually more aimed at AI and the premise that you\u2019re going to earn $4 billion in revenue off of the digital likeness. There are other examples where we\u2019re not sure if the market\u2019s ready for AI digital twins,\u201d Sutton said, pointing to the Coca-Cola AI-generated ad that led to mass outrage<\/a>.\u00a0<\/p>\n

It\u2019s also unknown how much these avatars should be worth. When it comes to something like music licensing, people generally know how much Justin Bieber\u2019s library is worth. But the technology around AI avatars is so new, consumer demand is unclear. Sutton likened the valuations around AI digital twins to the market around the NFT craze<\/a>, which placed sky-high prices on digital drawings.<\/p>\n

\u201cI don\u2019t expect [AI digital twins], in the short term, to replace or substantially improve upon the offerings that that currently exists. And by that, I mean the live streamers themselves and the personalities who are creating that content on a daily basis,\u201d Justin Miclat, CEO of the livestreaming and gaming talent management firm The Kinetic Group, told TheWrap. \u201cBehind the scenes, in terms of the workflow, AI and those emerging technologies have helped create efficiencies. But the actual product itself doesn\u2019t necessarily replace anything that currently exists in the marketplace.\u201d<\/p>\n

\u201cWhen you\u2019re looking at creating digital twins and other kinds of IP expansions \u2014 and by IP, I mean also voice and likeness \u2014 creators need to look at what sort of revenue models they want to have,\u201d Klaris said. \u201cYou need to look at guaranteed minimum royalties and some guaranteed payments just to make sure that being in this game is worth it to you, especially when you\u2019ve got the kind of leverage that Khaby Lame has.\u201d<\/p>\n

@khaby.lame<\/a> Today is my birthday, but I can\u2019t get inside. Thank you for all the messages \u2764\ufe0f\ud83e\udef6\ud83c\udffe#comedy<\/a> #learnfromkhaby<\/a> \u266c original sound \u2013 Khabane lame<\/a> <\/p>\n

Even if the worst happens and the deal doesn\u2019t go through, it\u2019s unlikely to scare people away from partnering with creators.\u00a0<\/p>\n

\u201c[If the deal fails], what it may do is solidify the known and existing pathways for creator monetization and business building that are more proven, more healthy and more well understood,\u201d Sutton said. \u201cI\u2019m all for innovation, but in this case, I\u2019m more supportive of brands and creators that are creating really healthy business models founded in reality and real existing revenue.\u201d<\/p>\n

\u201cI hope what it does is it incentivizes creators who will have ambitions that they need to spend to get good representation, whether it\u2019s a manager, an agent, a lawyer \u2014 people who are going to help them legitimately kick the tires when they\u2019re in the big leagues,\u201d Klaris said.\u00a0<\/p>\n

\t\t
\n\t\t\t\t\t\t\t\"Nick\t\t\t\t\t<\/a><\/p>\n