Hey Creatorverse readers,
I’ve written a lot about how the creator economy is bringing in the big bucks, but in January, TikTok sensation Khaby Lame (161 million subscribers) set the bar even higher with a deal that was reportedly worth $975 million in stock.
Now, it looks like that deal may not be happening or — at the very least — it’s been stalled.
So what happened? Here’s what we know from the outside looking in:
- The deal was with the Hong Kong-based company Rich Sparkle Holdings, a financial printing firm with no prior history of working with creators
- Rich Sparkle would gain the exclusive rights to Lame’s AI digital twin for 36 months and use it to promote ecommerce sales
- There’s no record that the deal officially closed, despite Rich Sparkle’s initial press release indicating otherwise
- Lame has removed Rich Sparkle’s stock ticker from his social profiles, and several stock trading organizations like ETrade and Merrill Lynch have either blocked or restricted trading around the company
“I think this whole thing is a scam, to be honest,” Henry Carter, managing partner at Jamestown Capital, told me.
That’s what my gut’s telling me too. The numbers are just too big, the red flags too numerous and Lame’s silence is too notable.
If this deal does turn out to be less than kosher, it seems unlikely that Lame knew about it. Based on his previous deals, Lame seems pretty entertainment focused instead of the type of creator who might push his audience to crypto schemes or other shadier options.
The deal caught a lot of attention because it hit several hot issues in the creator ecosystem — massive valuations for unproven technology, the growing trend of creators using AI avatars and creators taking equity over cold hard cash just to name a few. But more than anything, this story exemplifies just how young this ecosystem still is and how valuable it is for creators to partner with agents, managers, producers and partners who can offer a scalable and proven path for growth. It also may have a doubling down effect. As uncertainty around this deal increases, more tangible and proven partnership opportunities with creators may become more popular.
By now it’s a fact that creators are the future of the entertainment biz. But these artists and entrepreneurs are also desperate for reliable guidance as they scale their businesses. And no one is better at capitalizing on IP than Hollywood.
Now onto the rest.
Kayla Cobb
Senior Reporter
kayla.cobb@thewrap.com
What’s New
Snap and Alex Cooper’s Unwell experience employee departures
It’s not all sunshine and rainbows in the world of creators. Last Wednesday,Snap announced it was going to be laying off about 1,000 jobs — or 16% of its staff. The company is also eliminating more than 300 roles it previously planned to fill as the company attempts to reduce costs by more than $500 million in the second half. Like many other companies, Snap is hoping that increasing its reliance on artificial intelligence will help lower costs.
As for Alex Cooper’s Unwell, at least 20 staffers have left the podcasting company between 2025 and 2026, according to a new report from Bloomberg. The article points to Matt Kaplan, Cooper’s husband and co-chief executive officer, as a potential reason for this turnover. Kaplan has “earned a reputation for frequently yelling at staff members,” Bloomberg says.
Roblox settles child safety cases in Alabama and West Virginia for $22.2 million
Roblox’s legal worries over child safety protections are getting a little lighter. The sandbox gaming platform settled with two states: Alabama, which will get $12.2 million, and West Virginia, which will get $11 million. The funds will be used to finance school resource officers in Alabama and safety and education workshops for parents and children in West Virginia. It’s big news as several lawsuits have been filed against the platform. There’s still at least seven states with pending legislation against Roblox.
Sean Evans, Josh Johnson and Nick DiGiavanni win Webbys, and MrBeast is one of Time’s most influential people
On Tuesday, the Webby Awards announced its 2026 creator winners. “Hot Ones” host Sean Evans (15.4 million YouTube subscribers), “The Daily Show” host Josh Johnson (2.6 million TikTok followers) and celebrity chef Nick DiGiovanni (37 million YouTube subscribers) all took home top honors. Check out the full list here.
Speaking of DiGiovanni, he recently told me how he’s approaching his content now that he’s officially YouTube’s biggest food creator.
The Webbys weren’t the only ones to honor creators. MrBeast (479 million YouTube subscribers) was named as one of Time’s 100 most influential people in an entry authored by “Survivor” host Jeff Probst. MrBeast, aka Jimmy Donaldson, was the only creator on the list.
By the Numbers
Netflix viewers are watching podcasts in the daytime and on their phones
We have a bit of insight into how Netflix’s podcasting experiment is performing. During the company’s first quarter earnings call for 2026, co-CEO Ted Sarandos noted that subscribers typically watch podcasts on their mobile devices and during the daytime. “We historically have less engagement during the day,” Sarandos said. Earlier this month, Samba revealed that 13% of U.S.-based Netflix households watched a podcast on TV over the last three months. Charlamagne tha God, Angela Yee and DJ Envy’s “The Breakfast Club” is the early winner for having the biggest Netflix audience.
And Netflix’s podcasting bet is only getting bigger. Stephanie Soo,best known for the popular true crime podcast “Rotten Mango,” will be coming to the Netflix with “The Rotten Files.” Soo is represented by UTA.
Sidemen raise £6.2 million playing soccer for charity
Sidemen, the British collective of YouTubers with more than 140 million subscribers between them, raised £6.2 million during their most recent charity soccer match. The seventh edition of the game was watched by over 2 million people on YouTube. While that isn’t the most viewers this game has drawn, it is the most money they’ve raised. The money will go to the charities Bright Side and M7 Education.
Spending on creator advertising hit $37 billion in 2025
In 2025, spending on creator advertising hit $37 billion, according to a new report from the Internet Advertising Bureau. Spending is expected to grow even more this year with $44 million expected for advertising spend.
Movers and Shakers
JackSepticEye is producing a “Bloodborne” movie alongside Sony Pictures
What’s bigger and buzzier than a movie based on video game IP? A move based on gaming IP from a creator. That’s what’s happening to “Bloodborne,” FromSoftware’s 2015 masterpiece that’s been cited as one of the greatest games ever made. Seán McLoughlin, better known on YouTube as JackSepticEye (31 million YouTube subscribers), will be producing an R-rated animated movie about the game alongside PlayStation Productions, Lyrical Animation and Sony Pictures. Considering that McLoughlin is a “Bloodborne” mega-fan, it’s a partnership that makes sense.
Keke Palmer launches a live Twitch show, and TommyInnit’s has an interview show
Keke Palmer, the “Nope” and “The Burbs” star, started her own Twitch show this week. Palmer has been on the livestreaming platform since last month when she streamed the SXSW premiere of Boots Riley’s “I Love Boosters.” Now she’s launched “Keke Live.”
She’s not the only one with a new show. TommyInnit (15 million YouTube subscribers) has launched a new interview show titled “100 Questions with Tom Simons.” Right now it seems focused on grilling other creators, starting with “Minecraft” player StampyLongHead (11 million YouTube subscribers). If you’re the chronically online sort, it’s an interesting half hour.
Digital management company Fixated acquires creator media company Studio71
Fixated’s latest acquisition is the creator media company Studio71. Together, the two companies represent a global network of more than 1,000 creators with billions of monthly views. I’ve covered Fixated’s buying spree before. After scoring a $50 million investment in December, the company has acquired the gaming-focused creator company Ellify and the creator monetization company Elevate.
Who to Watch
Joanna Stern
After 12 years spent working at the Wall Street Journal, tech journalist Joanna Stern launched her own series today. “New Things” is an independent news channel and Substack that will fully embrace Stern’s nickname as “tech mommy.” In her first video, Stern explains that she left WSJ so that she could create videos more in line with her own sense of humor and personality and that the guiding principle of “New Things” will be answering the question “Who is tech for?”
“I realized I was really focused on these other platforms and not as much on the Wall Street Journal’s main digital and print site,” Stern told the Publish Press. Watch her first episode here, and keep an eye on her. We need great reporters now more than ever, and increasingly they’re all going independent.
Bonus Content
- She Can’t Stop Streaming (via CNN)
- Mega Influencers Are Replacing Themselves With AI Clones (via Vanity Fair)
- The Queen Bee of MAGA Socialites (via Wall Street Journal)
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This report provides a weekly deep dive into the creator economy. It highlights key trends, political and technological developments, data points and industry leaders all with the goal of making you smarter about this constantly evolving space.
