OnlyFans, the adult content platform based in the UK, is currently negotiating the sale of a minority ownership stake to a US investor, which could value the company at over $3 billion (£2.2 billion).
The London-headquartered platform is reportedly in advanced discussions to sell a stake of less than 20% to Architect Capital, an investment firm located in San Francisco, as per information from the Financial Times. Sources familiar with the situation have also verified these discussions to the Guardian.
In light of the recent passing of its founder, Leonid Radvinsky, OnlyFans believes that selling a minority stake will provide the necessary stability for the business. Radvinsky, a Ukrainian-American billionaire, succumbed to cancer last month at the age of 43.
OnlyFans is keen on partnering with Architect due to the firm’s financial sector expertise, which aligns with the platform’s ambitions to introduce banking services for its creators, many of whom face challenges in accessing such financial products due to the nature of their work.
Recognized for its profitability, OnlyFans is primarily associated with adult content, allowing creators to monetize their work by charging subscribers for access. The platform enforces a strict age limit of 18 years and older for users.
Recent financial disclosures from OnlyFans’ parent company, Felix International, reveal that there are 4.6 million registered creator accounts, with the revenue split between creators and the platform set at 80:20. Additionally, there are approximately 377 million fan accounts, allowing users to purchase videos and interact with their favorite content creators.
For the fiscal year ending November 30, 2024, OnlyFans reported revenues of $1.4 billion, achieving a pre-tax profit of $684 million, which reflects a 4% increase from the previous year. Payments made to creators during this period amounted to $7.2 billion, marking a nearly 10% rise.
In 2024, Radvinsky received $701 million in dividends from OnlyFans, adding to the more than $1 billion he had previously earned from the business.
Earlier in January, it was reported that OnlyFans had considered selling a majority stake of 60% to Architect, a move that followed discussions from the prior year about a sale to a consortium led by the Forest Road Company, an investment firm based in Los Angeles.
Should OnlyFans proceed with the minority stake sale, control of the company will remain with the family trust that holds Radvinsky’s shares.
OnlyFans has opted not to comment on these developments, while Architect Capital has been approached for a statement.
