The UK-based platform OnlyFans is in advanced discussions to sell a minority stake to a US investor in a deal that would value the company at more than $3 billion.
According to the Financial Times, the company is negotiating the sale of less than 20% to Architect Capital, an investment firm based in San Francisco. Sources also confirmed the talks to The Guardian.
Talks with US investment firm
Reports indicate that the platform is considering the minority stake sale as a way to ensure stability following the death of its owner Leonid Radvinsky. The Ukrainian-American billionaire died last month from cancer at the age of 43.
OnlyFans is reportedly exploring cooperation with Architect Capital partly due to the firm’s experience in financial services. The company is seeking to develop banking products for content creators, many of whom face difficulties accessing traditional financial services because of the nature of their work.
Platform business model
OnlyFans has become a highly profitable platform and is widely associated with adult content, which creators provide to subscribers who pay for access to their material.
The platform is available exclusively to users aged 18 and over. According to the latest financial disclosures from its parent company Felix International, the platform hosts 4.6 million creator accounts, which share revenue with the company on an 80:20 basis.
In addition, the platform has 377 million user accounts, allowing fans to purchase content and communicate directly with creators.
Financial performance
For the financial year ending 30 November 2024, OnlyFans reported $1.4 billion in revenue and $684 million in pre-tax profits, representing a 4% increase compared with the previous year.
Payments to creators reached $7.2 billion, marking an increase of nearly 10%.
Radvinsky received $701 million in dividends in 2024, in addition to more than $1 billion distributed in previous years.
Ownership structure
Earlier reports in January suggested that OnlyFans had considered selling a majority stake of around 60% to Architect Capital, while other reports had mentioned possible discussions with an investment group led by Forest Road Company.
If the minority sale proceeds, control of the company would remain with the family trust that holds Radvinsky’s shares.
Source: The Guardian