Top TikTok influencer's actual worth questioned after R14bn deal

Italian-Senegalese influencer Khaby Lame has made his name as the world's most-followed content creator on TikTok.

Just 25, the Senegal-born social media sensation has close to 163 million followers on the platform.

His recent near $1-billion deal with Hong Kong corporate services provider Rich Sparkle Holdings reportedly put Lame's worth at $6.6 billion, over R105 billion.

However, after the value of the company and its newest shareholder soared to hit $16.3 billion on 15 January and then crashed within days, experts are questioning Lame's net worth.

The agreement granted Rich Sparkle exclusive rights to the influencer's global business for three years, covering endorsements, licensing, e-commerce, and even an AI digital twin, reports Business Insider Africa.

Stephen Grootes looks at the story with Tribe Africa Advisory's Rutendo Hwindingwi.

"One of the concerns that has come up... is that if you value Lame and his company based on stock price that is one thing, but it should be measured based on financials. And if you do measure it on financials this should be far less."

"The bottom line that's coming out here is that both corporates and investors when they value digital companies and social media, the question is how you value it properly and how sustainable is it.:

Scroll up to the audio player to listen to Africa Business Focus (Lame discussion at 6:56)