Fenix International Ltd., the London-based owner of OnlyFans, is in advanced discussions to sell the adult content platform at a valuation of approximately $8 billion, according to three people familiar with the matter. The talks are led by Forest Road Company, a Los Angeles-based investment firm, though the identities of its partners remain undisclosed. Multiple sources said negotiations have been underway since March, but cautioned there is no guarantee a deal will materialize.
OnlyFans, which rose to prominence during the COVID-19 pandemic as a subscription-based platform for adult content creators, reported $6.6 billion in revenue for the year ending November 2023. The company retains 20% of earnings from its four million creators, who serve a global subscriber base of 300 million. The platform, which bypasses app stores and processes payments directly, derives 59% of its revenue from pay-per-view and livestream content, with the remaining 41% from subscriptions, CEO Keily Blair has stated.
The company's explosive growth has attracted investor interest but has also highlighted the adult industry's long-standing challenges. "Porn makes OnlyFans untouchable for many big banks and investors," a source told Reuters, citing due diligence risks associated with potential illegal content, including child sexual abuse material and nonconsensual pornography.
Founder Leonid Radvinsky, a Ukrainian-American entrepreneur who acquired OnlyFans in 2018, is the company's sole shareholder. He has paid himself over $1 billion in dividends between 2021 and 2023, according to U.K. filings. In the fiscal year ending November 2023, Radvinsky collected $472 million in dividends, nearly matching the firm's $485 million profit.
Despite its profitability, the stigma surrounding OnlyFans' adult content continues to suppress its valuation in institutional circles. One industry analyst noted that adult platforms typically sell for three to five times EBITDA, which could limit OnlyFans' market value to between $1.5 billion and $2.5 billion, well below its asking price. "OnlyFans is a revolutionary platform which continues to lead the creator economy," a company spokeswoman said.
Forest Road's involvement is notable given its previous interest in taking OnlyFans public via a SPAC in 2022. The firm, founded in 2017, has expanded into advisory services and previously backed ventures in Formula E racing and digital assets.
Regulatory and payment risks remain significant barriers. Visa and Mastercard still process transactions for OnlyFans, but at below-market rates, which analysts say could change abruptly. Adult platforms generally face fees exceeding 10%, compared to much lower rates in other tech sectors.
In an interview with The Wall Street Journal, Blair acknowledged the compliance risks: "Absolutely there is risk associated with [our business], but there's often the same risk associated with general social media platforms as there is with OnlyFans." She added the company is taking steps to prevent minors from accessing the platform.
Legal experts warn that OnlyFans' reliance on Section 230 of the U.S. Communications Decency Act, which shields platforms from liability for user-generated content, could become increasingly precarious. "The key to success was plausible deniability," said an adult industry insider. But as scrutiny intensifies, regulators may view a lack of content oversight as willful ignorance, potentially undermining the platform's legal protections.
