Only the most famous content subscription platform connected to the adult entertainment industry, and only the content subscription platform may soon have new owners.
A U.S. investor group led by Los Angeles-based Forest Road is reportedly negotiating a acquisition of the platform at its London headquarters for up to $8 billion.
The sale will mark a major exit from Ukrainian-American billionaire Leonid Radvinsky, who bought shares in Fenix International in 2018. Since then, Radvinsky has reportedly claimed the company's dividend is more than $1 billion.
Reuters first reported the talks, and the New York Post also claimed that Radwinsky had been seeking to uninstall the business, after his previous efforts were hampered by the website's close ties to adult content creators. The post estimates an earlier potential valuation for sale between $1.46 billion and $2.42 billion, well below the $8 billion figure being considered now.
Founded only by London-based entrepreneur Tim Stokely in 2016, it is only one way for musicians, influencers and content creators to monetize audiences through paid subscriptions. The platform quickly became popular after a brief ban on adult content, quickly becoming a hub for independent adult performers and a high-profile figure from outside the adult industry.
Today, only more than 4 million creators produce content for a global audience of 300 million subscribers, processing approximately $6.6 billion in annual payments through the platform. The company, which employs about 40 people, recently reported $1.3 billion in annual revenue in its latest UK documents.
“Onlyfans is a revolutionary platform that continues to lead the creator economy,” a company spokesperson told the New York Post. “Like any business of any size, it's natural for us to discuss how we continue to succeed.”
From niche platform to a billion dollar empire
Tim Stokely served as CEO until December 2021 when he co-founded the business with his father Gus. After being acquired by Radvinsky, the platform has experienced explosive growth, especially during the pandemic, becoming a leading player in the creator economy.
Despite its success, it has only long been facing reputational challenges due to its adult content. In 2021, the platform briefly announced a ban on sexually explicit materials, only turning the decision a few days after opposing it from its user base.
Some investors reportedly remain alert about the platform’s association with adult content, but others view the company as a rare profitable unicorn in the creator technology space, while one with a strong revenue and lean cost basis.
If completed, selling at such a valuation would represent a major milestone in the development of direct-to-consumer content platforms, despite ongoing social and regulatory reviews that validate their long-term viability and the potential for institutional investment.
Forest Road, which has previously supported media, sports and entertainment companies, has not commented on the discussions of the coverage.
Whether the deal is implemented with the reported $8 billion price tag (or is facing further obstacles) it highlights the platform's lasting financial capabilities, allowing creators to profit as they wish. For Onlyfans, it can mark the beginning of a new chapter of its controversial but commercially compelling story.
