A recent financial report delivers updated information - and further uncertainties - concerning a puzzling $975 million agreement involving TikTok's leading creator, Khaby Lame.

On January 9, Lame - who boasts over 160 million followers - finalized terms that could deliver a substantial payout and list his firm publicly. The approach involved merging with Rich Sparkle Holdings, a Hong Kong-based financial printing entity traded on public markets.

By late January, Lame had gone quiet regarding the merger. An update now shows the transaction remains stalled. A Rich Sparkle filing dated September 30, the first since March, outlined the arrangement as dependent on due diligence, a minimum company valuation for Lame, and exchange approval. This mirrors prior statements.

Amid the holdup, Rich Sparkle's shares have dropped 99 percent from their high. Following the January announcement, the price reached around $180 before closing at $1.93 on Thursday. Multiple brokerages had limited or halted trading in the shares, as Business Insider reported exclusively in April.

The initial reveal drew praise across the creator sector, given the uncommon scale of such valuations for influencer-led firms and the chance for regular investors to back a creator directly. Lame's profile as a Senegalese-Italian talent known for wordless comedy clips suggests the result may shape views on supporting creator-centric ventures.

January terms allocated Lame's company 75 million shares, valued near $145 million at Thursday's close. The starting deal had placed that equity at $975 million.

Rich Sparkle and Lame offered no replies to repeated comment requests.

At announcement, Rich Sparkle noted plans to build an AI version of Lame for brand partnerships and product promotions online. Projections indicated this could generate over $4 billion in yearly sales.

An uncommon equity detail

The latest filing reveals another notable point: Rich Sparkle granted nearly $39 million in shares to employees as compensation for the six months ending March 31, leading to an operating loss near $40 million. No such equity awards occurred in the prior-year period.

This issuance suggests certain staff may have gained from the sharp rise after the Lame news. The document omits specifics on recipients or exact timing within the half-year window.

Paul Nary, a Wharton management professor, noted the award size stood out compared to the firm's valuation and revenue.

If progress continues, no word has come from Lame, who dropped Rich Sparkle's ticker ANPA from his profiles in late January. The creator keeps working with brands, including a role in the James Bond-themed game 007 First Light, an ambassador post with travel eSIM firm Holafly, and promotion for the Dakar 2026 Youth Olympic Games.