Khaby Lame, the most followed person on TikTok, has just sold his company, Step Distinctive Limited, to a Hong Kong-based public holding company called Rich Sparkle in a deal worth $975 million.
The transaction, confirmed by a public SEC filing, will be completed through the issuance of 75,000,000 ordinary shares of Rich Sparkle. The deal is expected to generate more than $4 billion in annual sales.
At a Glance
- Khaby Lame sells Step Distinctive for $975 million.
- Deal includes 75 million shares of Rich Sparkle.
- Lame retains a controlling stake and continues to run Step Distinctive.
- Why it matters: The sale marks a major shift for the TikTok superstar, turning his personal brand into a multi-billion-dollar enterprise.
Deal Overview
The most followed TikToker, Khaby Lame, sold Step Distinctive Limited, the company that manages his global brand and commercial activities, to Rich Sparkle, a publicly traded holding company headquartered in Hong Kong. The deal was disclosed in a public SEC filing and was announced by Rich Sparkle in a press release.
Key Elements of the Agreement
- Valuation: $975 million.
- Share issuance: 75,000,000 ordinary shares of Rich Sparkle.
- Future revenue: Expected to exceed $4 billion annually.
- Lame’s role: He will continue as the head of Step Distinctive and retains a controlling share.
Financial Details
Below is a concise summary of the financial aspects of the transaction:
| Item | Value |
|---|---|
| Deal value | $975 million |
| Shares issued | 75,000,000 ordinary shares |
| Projected annual sales | > $4 billion |
| Lame’s previous stake | 49% |
| Lame’s controlling stake post-deal | 51% (approx.) |
The figures illustrate the scale of the transaction and the significant upside potential for Rich Sparkle.
AI Digital Twin Initiative
As part of the agreement, Lame has authorized Rich Sparkle to use his Face ID, Voice ID, and behavioral models for the development of an AI Digital Twin. This digital twin will enable multilingual, cross-time-zone livestream e-commerce content, allowing Lame’s persona to engage audiences worldwide without the need for physical presence.
The initiative is positioned to:
- Expand Lame’s brand reach.
- Generate new revenue streams through AI-powered content.
- Leverage Lame’s massive following for cross-platform marketing.
Post-Deal Role and Control
Despite the sale, Lame will remain at the helm of Step Distinctive. The deal’s specifications grant him a controlling share, ensuring he continues to guide the company’s strategy. Previously, Lame held a 49% stake in Step Distinctive; the new structure elevates his influence.
What This Means for Lame
- Continued creative control over his brand.
- Greater financial resources to scale operations.
- Strategic partnership with a global holding company.
Lame’s Journey to TikTok Stardom
Before TikTok, Lame worked in a factory and held various jobs to support his family. He told News Of Los Angeles last year, “Before TikTok, I was working in a factory. I had a lot of different jobs… I was helping support my family – three little brothers, one older brother and my parents. Then my world changed completely. It’s a whole different life now.”
During the COVID-19 pandemic, Lame discovered TikTok and began making videos for fun. He explained, “When I discovered TikTok during COVID, I was making videos for fun. It was a way for all of us to step outside of all the things that were going on in the world. I was just there trying to make people laugh. It wasn’t something that I expected to be my form of work in the future.”
Family and Lifestyle
Lame revealed his first major purchase since his success: a larger home for his family. “The first thing I did with the money I’ve made is buy a bigger house for my family,” he said. “We’re a family of seven. It’s a big family.”
He added, “I don’t like to spend a lot of money, but for this, my family has always done so much for me.”
Key Takeaways
- Khaby Lame’s sale of Step Distinctive to Rich Sparkle is a $975 million deal.
- Lame retains a controlling stake and will continue to run Step Distinctive.
- The agreement includes an AI Digital Twin that will expand Lame’s brand globally.
- Rich Sparkle expects the partnership to generate over $4 billion in annual sales.
- Lame’s journey from factory worker to TikTok superstar underscores the platform’s potential for rapid wealth creation.
The transaction signals a new chapter for Lame, blending his comedic talent with cutting-edge technology and corporate strategy.
