OnlyFans in talks to sell stake in deal that – Business News
OnlyFans is reportedly in talks to sell a minority stake in a deal that values the porn empire at roughly $3 billion – a low cost to the $3.5 billion valuation the company had sought earlier than its reclusive proprietor died final month.
San Francisco-based Architect Capital would buy much less than 20% of the business in a deal closing as quickly as subsequent month, the report mentioned. That’s far much less than the 60% stake Architect had mentioned buying earlier this yr — and the important thing cause for the low cost, in accordance to the Financial Times report.
The sale talks are coming to a head after OnlyFans proprietor Leonid Radvinsky died final month at 43 following a secret battle with most cancers. Radvinsky’s widow Katie has been overseeing the sale talks and controls the trust which holds her late husband’s shares.
The sale talks observe the death final month of OnlyFans proprietor Leonid Radvinsky at 43 years outdated. Leonid Radvinsky/Facebook
As solely reported by The Post, OnlyFans tapped Moelis & Co., the investment bank based by Wall Street legend Ken Moelis — to help it discover a purchaser after not less than one different bank shied away from representing OnlyFans.
The Post reported final month that Architect has been struggling to discover backers for its bid to purchase OnlyFans, with mainstream funds and establishments involved about reputational risk and regulatory scrutiny.
OnlyFans takes a 20% cut from its roughly 4.6 million creators, per the filings and the positioning just isn’t on App shops so no income is shared with Apple or Google.
Despite being a money minting machine, OnlyFans has confronted legal issues for years.
Architect — whose investments embody e-cigarette maker Juul Labs — goals to fund the proposed transaction by pooling capital from exterior buyers by way of a particular function vehicle. OnlyFans is operated by UK-based Fenix International Ltd.
As half of the deal, Architect would work with OnlyFans to develop new financial providers and merchandise to offer the platform’s creators, in accordance to the FT report. Last month, insiders informed The Post that OnlyFans had been contemplating shopping for or partnering with a financial technology company to help tackle its long-running banking woes.
OnlyFans tapped Moelis & Co., the investment bank based by Wall Street legend Ken Moelis, earlier this yr. Bloomberg by way of Getty Images
Last yr, Visa started implementing stricter chargeback and fraud requirements that slammed OnlyFans. X-rated websites additionally face greater transaction charges – typically 5% to 10% versus 2% to 3% for conventional e-commerce, in accordance to a report this yr by funds processor Myntpay.
OnlyFans, Architect and Moelis didn’t reply to requests for remark.
Founded in 2016, Radvinsky purchased a majority stake in the platform in 2018 and turned it into a financial juggernaut by permitting creators to charge immediately for his or her content material.
OnlyFans earned $666 million in working revenue on $1.4 billion in income in the yr ended Nov. 30 2024, in accordance to UK company filings. The company logged $449 million of gross sales prices and $197 million of administrative bills. OnlyFans had solely 46 workers, the filings show. About 64% of its income is generated in the US.
