Shares Plunge 90%, This TikTok Billionaire Faces Potential Losses

The fate of a jumbo deal worth nearly US$975 million involving global TikTok star Khaby Lame is now under heavy pressure. The cause is the shares of its partner company, Rich Sparkle Holdings, which have plunged by around 90% in a short time.

Quoting Business Insider on Tuesday (14/4/2026), Rich Sparkle’s share price, which once soared above US$180, has now fallen sharply to around US$11. This drastic decline immediately erodes the potential value that Lame could receive, given that his compensation depends on the company’s share price.

In the transaction scheme, Lame’s company will receive around 75 million new shares at an indicative price of US$13 per share. However, the real value that can be pocketed is heavily determined by the market price. This means that when the shares fall, the expected wealth value shrinks sharply.

Nevertheless, the deal has not yet been officially completed or received approval from stock market authorities. Thus, the impact on Lame’s actual wealth remains potential rather than realised.

Rich Sparkle itself plans to develop an artificial intelligence (AI) avatar of Lame to boost global e-commerce and endorsement businesses. The projected target is ambitious, with potential sales of up to US$4 billion per year.

However, several analysts consider this target overly optimistic. This is because the live commerce market outside China, including the United States, is still far behind. Even the sales achievements of major platforms in the US have not approached that figure.

Moreover, the business model relying on a single figure is seen as high-risk. Dependence on an individual’s popularity makes the company’s valuation difficult to measure and vulnerable to volatility.

Converting social media popularity into a large-scale public business is no easy feat. Several influencer-based companies have previously failed after listing on the stock exchange.