Recent headlines have sparked excitement about TikTok star Khaby Lame allegedly “selling his company” for a staggering $975 million, with claims that this deal makes him a billionaire. However, scrutiny from credible business news outlets like Forbes and Bloomberg reveals a more complex truth that warrants examination.
The Reality Behind the $975 Million Deal
Social media buzz surrounding Khaby Lame’s supposed windfall has been rampant, with many low-quality meme accounts claiming he is now a billionaire following the reported sale. However, reliable sources such as Forbes and Bloomberg recently reported on the transaction without delving deeply into its finer details.
TikTok Star Khaby Lame Sells His Core Company In Deal Worth $975 Million https://t.co/uIxGyrC2vX pic.twitter.com/fiL50yPfU2
— Forbes (@Forbes) January 27, 2026
The world’s biggest TikToker, Khaby Lame, has signed a $975 million deal to transform his 360 million social-media followers into a commercial venture. @nicolesyLIVE outlines what’s in his agreement https://t.co/Ba44b5SiUX pic.twitter.com/42NtRnK2YM
— Bloomberg (@business) January 28, 2026
However, neither Forbes nor Bloomberg provided in-depth analysis on the specifics of the transaction. In reality, Khaby Lame, who ascended from a laid-off factory worker in Italy to a prominent TikTok influencer, has not sold his company for a large cash sum. In fact, he has not become a billionaire; his estimated net worth stands at around $80 million.
Understanding the Companies Involved
The transaction involves two key entities:
- Step Distinctive Limited (Khaby Lame’s company)
- Rich Sparkle Holdings (the acquiring company)
Khaby Lame owns 49% of Step Distinctive Limited, indicating he has previously sold the remaining 51% to an undisclosed party. Meanwhile, Rich Sparkle Holdings, based in Hong Kong, specializes in printing and financial documentation and generated approximately $6 million in revenue last year. The company has been publicly traded on the NASDAQ since July 2025.
On January 11, Rich Sparkle announced it had reached an acquisition deal with Step Distinctive Limited, though the press release did not disclose a purchase price. A subsequent SEC filing revealed that the transaction’s value is estimated at $975 million, but it is important to note that this is an all-stock deal, with no cash changing hands. Rich Sparkle plans to create 75 million new shares specifically for this acquisition.
Assessing the Deal: Two Critical Conditions
For the stock-based deal to be considered valuable, two critical conditions must be met:
Condition #1: Proven Stability of the Acquirer
Accepting stock instead of cash involves a significant gamble on the acquirer’s long-term success. Typically, completed transactions contain lock-up periods preventing immediate sales. Rich Sparkle, having only gone public for six months prior to the deal announcement, does not offer the kind of stability that sellers would want when dealing in such high-value transactions.
Condition #2: Liquidity of the Stock
The trading volume of a stock is crucial. A company like Rich Sparkle, trading only a few thousand shares daily prior to the acquisition announcement, presents a risk for anyone accepting a significant amount of stock. If Khaby Lame were to attempt converting his shares into liquid assets, he would likely face obstacles due to limited trading volume and price fluctuations.
Thus, the likelihood of Khaby converting his shares into usable funds approaching the reported $975 million is virtually nonexistent, as selling such a large number of shares could crash the stock price.
Conclusion
Khaby Lame is undoubtedly a significant figure in social media, reportedly earning between $20 million to $40 million annually, with a net worth of about $80 million. However, the narrative surrounding a billion-dollar transaction is misleading. The headline about a $975 million sale exemplifies how sensational claims can mask the nuances of financial dealings. Readers are urged to approach such headlines with caution and seek clearer understanding beyond the surface.
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