Fenix International Ltd, the owner of the OnlyFans platform, is in late-stage negotiations to sell the platform to an investor consortium at a valuation of approximately $8 billion.
Key Deal Details
The investor group is led by Los Angeles-based Forest Road Company, which has previous ties to OnlyFans. A deal could be finalized within weeks, though discussions remain fluid and may still collapse. Fenix is also engaging with other potential buyers, and an initial public offering (IPO) remains an alternative option.
Importance of the Deal
OnlyFans, which saw meteoric growth during the pandemic, has become a dominant force in the creator economy, taking a 20% cut of user earnings. Despite its financial success, its reliance on adult content has made it a controversial asset for traditional investors.
Financial and Strategic Context
Revenue surged from $375 million in 2020 to $6.6 billion in 2023, per UK filings. Leonid Radvinsky, the sole shareholder, has paid himself over $1 billion in dividends since 2021. Forest Road executives previously explored taking OnlyFans public via SPAC in 2022, SEC filings show. Content moderation risks, including illegal material, have deterred major banks and institutional backers.
A sale or IPO could pave the way for further expansion beyond adult content. However, regulatory scrutiny remains a hurdle for any transaction.
