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Khaby Lame Strikes $975 Million All-Stock Deal for AI ‘Digital Twin’ With Rich Sparkle

Market watchers question how much of the headline valuation can be realized in cash due to the acquirer’s thinly traded stock.

Overview

  • SEC filings show Rich Sparkle completed the acquisition of Step Distinctive via 75 million newly issued shares valued at $975 million with no cash component.
  • Because Lame owned 49% of Step Distinctive, his consideration equates to roughly 36.75 million Rich Sparkle shares, a stake that would be difficult to liquidate quickly given low trading volumes.
  • The agreement grants Rich Sparkle exclusive commercial rights for a reported multi-year term and authorizes development of an AI digital twin using Lame’s image, voice and behavioral models.
  • Rich Sparkle projects more than $4 billion in annual sales from the partnership, despite being a recent NASDAQ listing with roughly $6 million in prior-year revenue.
  • Coverage differs on whether Lame becomes a controlling shareholder, and analysts caution that ownership and liquidity constraints complicate simple billionaire claims.