Khaby Lame Valued at $900 Million in Historic Deal Involving AI Rights

2026-01-25 companies

Milan, Sunday, 25 January 2026.
This historic all-stock deal values Lame’s operations at nearly $900 million, granting the acquirer rights to create an AI “digital twin” that generates content independently of the star.

Structuring the Billion-Dollar Bet

In a defining moment for the creator economy, Khaby Lame, the world’s most-followed TikTok personality, has transitioned his operations into the public markets through a complex transaction finalized on January 23, 2026 [2]. His operating entity, Step Distinctive Limited, was acquired by Rich Sparkle Holdings (Nasdaq: ANPA) in a deal valued between $900 million and $975 million [1][4]. Crucially, this was an all-stock transaction rather than a cash exit; no liquid funds were exchanged, and Lame has instead become a controlling shareholder in the acquiring firm [7]. This structure signifies a shift from traditional sponsorship income to equity-based wealth, where the creator bets on the long-term appreciation of the corporate vehicle rather than immediate payout [7].

The Equity Shift: From Sponsorship to Ownership

The valuation mechanics of this deal are rooted in stock issuance rather than current revenue multiples. Rich Sparkle Holdings issued approximately 75 million new shares to complete the acquisition [5]. Lame, who controlled 49% of Step Distinctive Limited, effectively holds a stake valued at approximately 477.75 million based on the headline valuation of $975 million [5]. However, the actual market value remains volatile; shares of Rich Sparkle Holdings surged to $150 following the announcement before correcting to $50, leaving the company with a market cap of roughly $600 million as of January 22, 2026 [5]. This volatility underscores the risks inherent in such high-stakes reverse mergers, where the valuation is often derived from internal calculations rather than settled market reality [5].

Industrializing Fame: The AI Digital Twin

Beyond the financial engineering, the deal’s strategic core lies in the “industrialization” of Lame’s attention through artificial intelligence. The agreement grants Rich Sparkle Holdings exclusive commercial rights to the Khaby Lame brand for 36 months, including the development of a hyper-realistic AI “Digital Twin” [1][2]. This digital avatar utilizes Lame’s Face ID, Voice ID, and behavioral models to generate content and advertisements without his physical presence [5]. The objective is to decouple the creator’s time from content production, enabling the brand to run simultaneous campaigns across multiple countries and livestream 24/7 in various languages [3][5].

Market Realities and Future Implications

This consolidation of digital rights aligns with the strategy of partner entity Anhui Xiaoheiyang Network Technology, which aims to utilize Lame as a global “traffic gateway” to export Chinese live-streaming sales models to Western markets [5]. While the deal is celebrated as a milestone for individual creators commanding studio-level valuations, it is fundamentally a corporate restructuring rather than a traditional sale [2][7]. As analysts note, Lame has traded his digital rights and distinct likeness for equity in a company that—until recently—was a Hong Kong-based financial printing firm with under $6 million in annual revenue [5]. The success of this $900 million valuation now depends entirely on the company’s ability to monetize the AI-driven expansion of Lame’s personal brand [2][5].

Sources

Creator economy Private equity