A transaction involving TikTok creator Khaby Lame has drawn attention after a small Hong Kong–based company said it had bought a business linked to him, a disclosure that briefly sent its shares sharply higher before they fell back.

Rich Sparkle Holdings, a US-listed firm, said it had agreed to acquire Step Distinctive Limited, the company associated with Lame. The deal is structured as an all-share transaction and values the business at roughly $900 million to $975 million, according to the announcement.

The scale of the transaction, combined with the limited public profile of the buyer, quickly attracted market interest.

AI-driven strategy behind the acquisition

The company says the purchase is tied to plans to develop an artificial intelligence system that copies Lame’s familiar expressions and movements. That system would be used to produce videos, take part in livestream shopping and support brand promotions in different markets.

Rich Sparkle has said it wants to rely less on traditional influencer campaigns. Instead, the digital version of the creator would be used on an ongoing basis to generate revenue, mainly through online sales, licensing arrangements and brand tie-ups.

The announcement triggered heavy trading. Rich Sparkle’s shares rose more than 650% shortly after the deal was made public, briefly trading above $180. The surge pushed the company’s market value into the billions, at least on paper.

The rally did not last long. Investors later pointed to the company’s small public float, which can exaggerate price moves. With relatively few shares available, prices can rise quickly and reverse just as fast. The stock later fell sharply.

The deal comes as companies experiment with ways to commercialise digital personalities using AI. Questions around control and long-term value remain unresolved. For now, attention is focused on whether Rich Sparkle can turn the idea into a workable business.

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