What was the total value of Khaby Lame's deal with Rich Sparkle Holdings?

Khaby Lame's all-stock deal with Rich Sparkle Holdings was valued at Rs 8,980 crore, equivalent to $975 million.

How did Rich Sparkle Holdings' stock perform after the deal with Khaby Lame?

Rich Sparkle Holdings' stock surged over 650% following the announcement of the deal with Khaby Lame, but later dropped up to 77% from its peak.

What concerns have market experts raised about Khaby Lame's deal?

Experts have raised concerns about the deal's sustainability and questioned Rich Sparkle Holdings' change in business focus after its initial IPO.

Home / Business and Economy / Khaby Lame Deal Sparks Market Frenzy

Khaby Lame Deal Sparks Market Frenzy

31 Jan

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Summary

Khaby Lame's $975 million deal faced market scrutiny.
Rich Sparkle's stock surged over 650% then dropped 77%.
Experts questioned the deal's sustainability and business shifts.

A significant Rs 8,980 crore ($975 million) all-stock transaction involving TikTok star Khaby Lame is now under intense review by market experts. Lame's company, Step Distinctive Limited, which manages his global brand, was sold to Rich Sparkle Holdings, a Hong Kong-based public firm.

Following the deal's revelation earlier this month, Rich Sparkle's stock experienced a dramatic surge, climbing more than 650% to reach $180.64 per share by January 15. This valuation briefly placed Lame's stake around $6.6 billion. However, the stock has since seen a sharp decline, falling as low as $41, a drop of up to 77% from its highest point.

This volatility has led financial professionals to question the deal's long-term viability and the company's strategic pivots. Securities attorney Brenda Hamilton noted that Rich Sparkle's prospectus initially outlined one business focus, but the company quickly shifted to a different sector, issuing substantial shares that resulted in a change of control.