OnlyFans Could Be Valued at $8B in Potential Sale

OnlyFans, the content platform known for its subscription-based model, is reportedly in discussions with an investor group for a potential sale valued at approximately $8 billion, according to sources familiar with the matter.

Forest Road Company Leads Investor Talks

The investor group is reportedly led by Forest Road Company, a Los Angeles-based investment firm. Details about other investors within the group remain undisclosed. This news comes as OnlyFans explores various options, including a potential IPO, while also fielding interest from other potential buyers.

Massive Revenue Growth Fuels Investor Interest

OnlyFans experienced a surge in popularity, particularly during the COVID-19 pandemic, as creators leveraged the platform to connect with subscribers. The platform’s revenue skyrocketed from $375 million in 2020 to an impressive $6.6 billion in 2023, showcasing its rapid growth and potential.

Past IPO Discussions and Future Considerations

Notably, some executives at Forest Road were previously involved with a special purpose acquisition company (SPAC) that explored taking OnlyFans public in 2022. While OnlyFans and Forest Road have declined to comment on the ongoing discussions, sources indicate that Fenix International Ltd, OnlyFans’ parent company, is also engaging with other interested parties.

Deal Uncertain, IPO Still on the Table

While discussions have been ongoing for several months, sources caution that a deal is not yet guaranteed. An initial public offering (IPO) remains a potential alternative. The company’s sole shareholder, Leonid Radvinsky, has received substantial dividends in recent years, further highlighting the platform’s financial success.

Controversies and Due Diligence Challenges

Despite its financial success, OnlyFans has faced scrutiny regarding content moderation and potential illegal activities. Concerns about child sexual abuse material, trafficking, and nonconsensual pornography have made some traditional banks and investors wary, presenting challenges for due diligence.

Forest Road’s Investment Portfolio

Founded in 2017, Forest Road is an investment firm with interests in media, renewable energy, and digital assets. Its diverse portfolio includes ventures such as a Formula E racing team and a majority stake in ACF Investment Bank.

Disclaimer: This article is based on information available as of the latest update and is subject to change as the situation evolves.