OnlyFans owner Fenix International Ltd is negotiating a sale with an investor group valued near $8 billion, sources told Reuters. The investor group is led by Forest Road Company, an investment firm based in Los Angeles, said three sources familiar with the talks. Reuters could not identify the individual investors involved in the proposed deal.
This potential transaction and its valuation have not been reported publicly before, marking significant news in the digital content industry. The investor group includes parties previously interested in OnlyFans, indicating sustained confidence in the company’s growth potential.
OnlyFans’ Rapid Growth Attracts Investor Interest
OnlyFans gained immense popularity during the COVID-19 pandemic as a platform for porn creators to monetize content directly from subscribers. The company charges creators a 20% commission on their earnings, securing a strong revenue model.
According to filings with British regulators, OnlyFans generated $6.6 billion in revenue in the year ending November 2023. This represents a massive increase from just $375 million in 2020, reflecting rapid expansion.
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Forest Road Previously Considered Taking OnlyFans Public
Some executives at Forest Road were involved in a special purpose acquisition company that considered taking OnlyFans public in 2022, according to regulatory filings and sources. However, that plan did not materialize.
Neither OnlyFans nor Forest Road have provided official comments on the current negotiations or the possibility of a sale, maintaining a low-profile during discussions. Fenix International Ltd is also reportedly in discussions with other potential buyers, according to sources close to the sale talks. Interest in OnlyFans remains strong from several parties.
Talks Have Been Underway Since March
Negotiations have reportedly been ongoing at least since March, with sources indicating a deal could be finalized within the next one or two weeks. Yet, no certainty exists that the sale will complete.
In addition to a potential sale, OnlyFans is considering an initial public offering (IPO) as another strategic option, according to three sources familiar with the company’s plans.
Leonid Radvinsky, a Ukrainian American entrepreneur, is the sole shareholder of OnlyFans. He acquired the company in 2018 and has taken at least $1 billion in dividends over three years.
Concerns Over Illegal Content on Platform
Investigations in 2024 exposed that OnlyFans has hosted child sexual abuse material and nonconsensual pornography since 2019, including cases of sex trafficking and exploitation. These findings have raised serious concerns.
The nature of OnlyFans’ content restricts many big banks and investors from participating due to legal and reputational risks. Due diligence often uncovers illegal material, complicating financial involvement.
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New York Post Reports Sale Exploration
The New York Post recently reported that OnlyFans is exploring a potential sale, which aligns with Reuters’ sources and ongoing discussions about ownership changes.
Founded in 2017, Forest Road focuses on media, renewable energy, and digital assets, according to its website. Its investments include a Formula E racing team and acquisition of a majority stake in ACF Investment Bank in 2024.
Summary
OnlyFans owner Fenix International Ltd is in talks with a Forest Road-led investor group to sell the company at approximately $8 billion valuation. The platform’s rapid revenue growth and controversial content have made the sale a complex yet high-stakes deal, with an IPO also under consideration.
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