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  • 6 hours ago
Khaby Lame’s $975 million deal is facing trouble as brokerages restrict trading in the stock tied to it. The TikTok star had planned to merge his company with Rich Sparkle Holdings so everyday investors could buy in, but uncertainty has sent the stock down over 90% since January.

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00:00Kaby Lame's nearly $1 billion deal is suddenly looking shaky.
00:05In January, the world's most-followed TikToker said he struck a $975 million deal to take his business public.
00:13But business insiders Lucia Moses and Dan Waitley report that Lame has gone quiet.
00:19The plan was to merge with a company called Rich Sparkle, allowing everyday investors to buy a stake in Lame's
00:26brand.
00:27Traders rushed in and the stock surged as people bet big on the TikToker's star power.
00:33But that excitement didn't last.
00:35The stock has since crashed more than 90%, and key details about the deal are murky.
00:41There's no confirmation it actually closed, and filings suggest it might not have met the required conditions.
00:47Major brokerages like E-Trade, Fidelity, and Charles Schwab have restricted or blocked trading of the stock.
00:53And interactive brokers labeled it non-tradable altogether.
00:58Meanwhile, Lame has removed the stock ticker from his social profiles, and hasn't publicly addressed the deal in months.
01:04As the share price drops, so does the value of Lame's potential stake.
01:09What once looked like a massive payday is now a big question mark.
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