TikToker Khaby Lame's $975 million deal is riding on a crashing stock

Business Insider

February 20, 2026

AI-Generated Deep Dive Summary

TikTok superstar Khaby Lame’s $975 million merger deal with Hong Kong-based Rich Sparkle Holdings is under increasing pressure as the company’s stock price has plummeted from a high of $180 to just $11.19. The deal, which would make Lame’s payout dependent on Rich Sparkle’s share price, hinges on the success of an AI clone of the influencer being used for e-commerce sales. While Rich Sparkle projects this avatar could generate up to $4 billion in annual revenue, questions remain about whether such a ambitious target is achievable. Rich Sparkle, once a financial printing company, aims to leverage Lame’s massive following and create an AI-driven avatar to sell products across social media platforms like TikTok Shop. The deal would give Lame’s team 75 million new shares in Rich Sparkle, valued at $13 each. However, the steep decline in Rich Sparkle’s stock price raises concerns about whether Lame and his team will be able to cash out on their stake. Meanwhile, the merger has not yet been finalized or approved by Nasdaq, leaving its future uncertain. The use of AI avatars for e-commerce is gaining traction globally, particularly in China, where platforms like Baidu and Taobao have embraced digital influencers for livestream sales. While human influencers can connect authentically with audiences, AI avatars offer the advantage of 24/7 operations and real-time engagement. However, translating Lame’s fame into $4 billion in annual sales remains a significant challenge. Critics point out that influencer-driven businesses often struggle to scale and face risks tied to over-reliance on individual personalities. The deal highlights the growing trend of influencers seeking public market access through reverse mergers, a process that allows private companies to bypass traditional IPOs. While this route can be faster and cheaper, it also comes with higher risks. Rich Sparkle’s steep decline in stock price underscores the volatility and uncertainty surrounding such transactions. Experts warn that tying a company’s value to an individual influencer’s fame is inherently risky and difficult to assess for investors. Khaby Lame’s deal serves as a

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Originally published on Business Insider on 2/20/2026