Why the World’s Biggest TikTok Star’s $975 Million Business Deal is Suddenly Falling Apart

Khaby Lame’s landmark merger drew in traders and creator economy optimists alike, but the stock has since plunged more than 90 percent and major brokerages are restricting trading.

BY AMAYA NICHOLE, NEWS WRITER

Khaby Lame. Illustration: Inc.; Photos: Getty Images; Adobe Stock

TikTok’s top influencer struck a landmark deal that would have let retail investors buy a stake in his business for the first time, but months later it’s unraveling.

Khaby Lame is a Senegalese-Italian influencer who’s known for silent comedy videos in which he responds to overly complicated life hack videos with a deadpan expression and a simple gesture.

“It is accessible to more people than if I would make my videos in English. I speak a universal language that everyone understands,” he told Forbes in Italian.

Now, with over 160 million followers, his influence has gone beyond the social media platform as he’s secured deals with brands like Airbnb, Fortnite, and Hugo Boss.

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In January, Lame announced a $975 million merger with Rich Sparkle Holdings, a Hong Kong-based company focused on Web3 technology and the creator economy, that would deliver a significant payday while allowing everyday investors to buy a stake in his business.

This would put him in the elite ranks of the creator economy. Unlike MrBeast’s company, which is valued at around $5 billion but private, Lame’s would be publicly traded and open the door to retail investment in an individual creatorfor the first time.

In exchange for its intellectual property, Lame’s company would receive stock in Rich Sparkle and the deal made Lame’s payout dependent on its share price.

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