In a bold move signaling its ambitious international expansion, beleaguered Chinese influencer incubator Three Sheep Group has secured the rights to manage TikTok’s biggest global star, Khaby Lame, for e-commerce monetization.
The deal, revealed in a recent statement by a US-listed company, marks a significant step for Three Sheep as it pivots aggressively overseas following severe setbacks in its domestic Chinese market.
Deal Structure: Licensing Model for a Global Icon
The collaboration is structured as a licensing agreement. US-listed firm Rich Sparkle Holdings has acquired a majority stake in Lame’s company, Step Distinctive Limited. Under this initial agreement, Rich Sparkle secures the exclusive global agency rights for the “Khaby” brand for the next 36 months.
Subsequently, Rich Sparkle has sub-licensed these rights to Three Sheep. The operational responsibilities will be handled by Anhui Xiaoheiyang Network Technology Co. , a Three Sheep affiliate. Its mandate is comprehensive, covering the full spectrum of e-commerce operations, including:
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Planning and executing TikTok livestreams and short-video commerce.
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Securing brand endorsement deals.
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Developing AI-powered virtual hosts.
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Managing cross-border supply chain logistics, order fulfillment, and after-sales service.
The Khaby Lame Phenomenon: A $4 Billion Annual Opportunity?
Khaby Lame, widely known for his signature “expressionless” reaction videos that humorously overcomplicate simple life hacks, is a digital phenomenon. On TikTok alone, he boasts over 160 million followers, with nearly every video garnering views in the millions. Across all platforms, including Instagram, his total global following surpasses 360 million.
This unparalleled reach underpins Rich Sparkle’s exceptionally bullish forecast for the partnership. The company has projected that the monetization of Lame’s brand could eventually generate annual sales of up to $4 billion (approximately RMB 27.8 billion) .
Three Sheep’s Overseas Pivot: From Setback to Strategy
For Three Sheep Group, this partnership represents a critical strategic shift. The company, co-founded by top Chinese livestreamer “Crazy Little Yang” (Zhang Qingyang), built its empire on aggressive, high-energy sales tactics in the domestic market. However, its core business was severely disrupted in late 2024 following a major scandal involving a misleading Mid-Autumn Festival mooncake promotion.
Since then, the group has accelerated its overseas expansion. Launched in 2023 with a focus on Southeast Asia through its “Three Sheep Network” MCN, the company has since expanded into Latin America and Japan. According to the company’s overseas business head, Three Sheep now ranks among the top three cross-border MCNs in Singapore, Malaysia, and Vietnam.
The Clash of Cultures: Can the “Khaby” Style Sell?
The partnership brings together two vastly different styles of content creation. Lame’s global appeal is built on minimalist, universally understandable humor that transcends language. In stark contrast, Three Sheep’s domestic success was fueled by the loud, fast-paced, and sometimes controversial persona of “Crazy Little Yang.”
How Three Sheep will integrate Lame’s unique, understated persona into the high-pressure, sales-oriented environment of a TikTok livestream remains a key question for industry observers. The outcome of this cultural and stylistic experiment will be closely watched.
The Wider Trend: Chinese MCNs Look Overseas
Three Sheep’s aggressive move is part of a broader, strategic exodus by China’s top Multi-Channel Networks (MCNs). Facing a saturated and hyper-competitive home market, these influencer incubators are increasingly looking to replicate their e-commerce success abroad on platforms like TikTok.
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Meione, the MCN behind top Chinese livestreamer Li Jiaqi (Austin Li), launched its international division in 2024, initially targeting Indonesia before announcing plans to enter the US market.
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Yaowang Technology, one of the earliest movers, has already achieved significant results in the US and UK, with its managed creators hitting top sales rankings on TikTok in both regions.
For these Chinese MCNs, TikTok’s global scale—with over 1.5 billion monthly active users—and the relatively nascent state of its livestream e-commerce model present a vast, largely untapped “blue ocean.” However, success hinges on deep localization and a nuanced understanding of diverse consumer cultures—a challenge far greater than simply transplanting proven domestic formulas.
