Creator platform OnlyFans is looking for a buyer with a valuation of up to $8 billion. According to Variety via hypebeast.com, current majority shareholder Leonid Radvinsky is in talks with an investor group led by Los Angeles investment firm Forest Road Co. about a sale.
For your information, Radvinsky acquired approximately 75% of the shares of OnlyFans' parent company Fenix International as early as 2018 and has controlled the development of the platform since then. Forest Road Co. previously attempted to list OnlyFans through SPAC operations in 2022, but sources currently revealed that an initial public offering (IPO) is not in the short-term plan.
It is worth noting that the New York Post once pointed out that OnlyFans had difficulty finding a buyer because the platform was mainly based on adult content, and the estimated valuation at the time was only between $1.46 billion and $2.42 billion. The $8 billion valuation that was reported this time shows that the platform's appeal in the market has greatly increased.
Moreover, OnlyFans delivered impressive results in fiscal year 2023: total revenue reached US$6.63 billion, of which platform creators received US$5.32 billion. It currently has more than 4.12 million creators and more than 300 million registered users, showing that its user base and business model are quite solid.
To recap, OnlyFans was founded by Tim Stokely in 2016 and quickly became popular during the epidemic, becoming one of the important platforms of the creator economy. However, the platform's label of mainly adult content still deters many mainstream investors, which also adds some uncertainty to the sale negotiations.
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