TikTok's popular influencer sold company for $975M to company doing $6M revenue

> Hong Kong-based Rich Sparkle Holdings (ANPA) reported to the SEC on Jan. 9 it was acquiring Lame's Step Distinctive Limited, and announced the $975 million all-stock transaction closed in a press release two days later.

> Rich Sparkle boasted the deal would offer a "structured, exclusive, full-chain, platform-style commercialization system" around Lame, who would be a "controlling shareholder," and whose likeness would be replicated by an "AI Digital Twin."

> Soon after, Rich Sparkle's stock skyrocketed over 650%, reaching a high of $180.64 per share on January 15, with Lame's stake worth $6.6 billion (based on his 49% ownership of Step Distinctive, which gave him a 41% stake in its buyer), though due to limited disclosure requirements for foreign entities, it's unclear whether Lame sold any shares.

> Rich Sparkle had first listed on Nasdaq six months prior in July, in a small offering of 1.25 million shares priced at $4 each with an implied enterprise value of about $50 million, according to SEC filings, and it disclosed 2024 revenue of under $6 million from "designing and printing high quality financial materials."

> Rich Sparkle's sudden shift in focus, explosive stock growth and quick crash---it's dropped as low as $41, 77% from its peak---has some critics raising "red flags."

> Lame, who has over 160 million followers on TikTok and 78 million on Instagram, only commented on the deal 11 days after Rich Sparkle announced it had closed, saying "Congratulations to the team at ANPA very excited to be a shareholder and looking forward to doing great things!" (Lame and Rich Sparkle have not responded to Forbes' requests for comment).

> Based on Rich Sparkle's most recent stock price, Lame's net worth appears to be $3 billion, but given its tiny float of less than 5%, Forbes would value it based on its financials and not its stock price, meaning he's nowhere close to being a billionaire.