In a surprising turn of events, the e-commerce company Step Distinctive has been acquired by U.S.-listed firm Rich Sparkle at a valuation of $975 million, approximately 6.7 billion yuan. The deal marks a major strategic shift for the Xiao Yang brothers, former livestreaming giants known as "Crazy Xiao Yang."

Step Distinctive is primarily controlled by top TikTok creator "Speechless Brother," with a significant stake held by Anhui Xiao Hei Yang Network Technology Co., Ltd., which is ultimately controlled by the Xiao Yang brothers. Under the transaction, Speechless Brother holds 49% of shares directly or indirectly, while the Xiao Yang brothers' affiliated company retains a 13% stake.

Contrary to initial impressions of a straightforward sale, the deal is structured as a strategic acquisition. It grants the Xiao Yang brothers' company exclusive global operational rights over Speechless Brother’s content and commercial activities for the next 36 months. This includes livestream planning, TikTok store management, and cross-border supply chain coordination.

The collaboration aims to leverage a combined audience of nearly 800 million followers, targeting annual sales of $4 billion, or around 277.6 billion yuan. This move signals the Xiao Yang brothers’ strategic pivot toward international expansion amid slowing domestic growth.

While Western markets have limited exposure to livestream shopping, the brothers see potential in introducing the model abroad. Their company has already expanded into Singapore, Malaysia, Vietnam, Mexico, and Japan, with plans to enter emerging markets like Brazil.

The acquisition represents a bold effort to bridge Chinese manufacturing and supply chain capabilities with global consumer demand—a strategy already pursued by platforms like Temu. Whether this ambitious cross-border bet will pay off remains to be seen, but it underscores a significant new direction for the once-dominant livestreaming duo.