Rich Sparkle Holdings, listed in the US, has successfully acquired Step Distinctive Limited, a company affiliated with TikTok sensation Khaby Lame. This acquisition is part of a strategic deal aimed at the global commercialization of Lame’s content and brand. Reports estimate the transaction’s value to be between $900 million and $975 million.
Khaby Lame: A Social Media Giant
Khaby Lame is one of the most followed creators worldwide, boasting around 360 million followers across various platforms. Following the acquisition, he is poised to become a controlling shareholder in the newly formed partnership.
A Shift in Brand Management
This agreement transitions from traditional project-based collaborations to a centralized approach for managing Lame’s commercial endeavors. These activities encompass livestream commerce, content production, and brand development.
Terms of the Agreement
As part of this strategic arrangement, Anhui Xiaoheiyang Network Technology Co., Ltd., a Chinese company specializing in livestream and content-commerce, will gain exclusive global operating rights for Khaby Lame’s commercial initiatives for a duration of 36 months.
Key Focus Areas
- Livestream and short-video commerce planning
- TikTok Shop operations and conversion optimization
- Cross-border supply chain coordination, fulfillment, and after-sales services
- Brand endorsements and advertising production
- Development of an AI-based digital avatar
Rich Sparkle aims to provide a comprehensive solution that integrates content creation, sales conversion, logistics, and post-sale services within a single operational framework. Based on internal expectations, annual sales originating from Lame’s fan engagement might surpass $4 billion.
AI Digital Twin Initiative
The agreement allows Khaby Lame to permit the use of his facial and voice data, along with his behavioral characteristics for creating an AI “Digital Twin.” This digital counterpart is designed to facilitate multilingual content creation and virtual livestream commerce, enabling seamless operations across time zones.
Geographic Focus
The commercialization strategy will initially target three regions: the US, the Middle East, and Southeast Asia. Rich Sparkle plans to implement distinct pricing strategies and independent profit accounting for each market. This approach considers variations in consumer purchasing power, logistics costs, and regulatory frameworks.
Future Prospects
In addition to expanding livestream and short-video commerce, the partnership is exploring coordinated international brand advertising campaigns. Furthermore, there are plans for developing co-branded intellectual property in sectors like beauty, fragrance, and apparel.
