OnlyFans Owner Eyes $8 Billion Deal in Potential Platform Sale

The well-known pornographic material subscription service OnlyFans might fetch up to $8 billion if it were to go up for sale. According to a media report, billionaire owner Leonid Radvinsky is in negotiations to sell the content creator website to a group of investors headed by the US investment firm Forest Road Co.

The article also noted that Forest Road Co. is not the only company in talks to sell OnlyFans and that it is unknown when a deal will be reached.

 A media report claims that despite OnlyFans' $8 billion valuation, Radvinsky has been trying to sell the company for between $1.46 billion and $2.42 billion after struggling to attract buyers because of the platform's pornographic content.

OnlyFans and its Operations

Tim Stokely established OnlyFans in 2016 as a comparatively safer network that gave preference to adult content producers. In 2018, Radvinsky, who also started the cam website MyFreeCams, purchased OnlyFans from Stokely.

Due to its distinct business strategy that does not rely on advertising, unlike social networking sites like Facebook and Instagram, OnlyFans has seen a 2000% increase in revenue since then. To create an account on the platform, individuals must go through a rigorous ID verification process.

In order to make its platform safe for creators, OnlyFans has also stated that it has taken specific actions, such as creating a purposefully difficult-to-use search function.

To read anything, whether explicit or not, posted by OnlyFans creators, registered users must pay a subscription fee. The creators of OnlyFans receive the remaining 80% of the price after the corporation deducts 20%.

Strong and Expanding Network of OnlyFans

At the close of its fiscal year 2023, OnlyFans had over 300 million registered members and 4.12 million producers. Its net sales increased by 20% to $1.31 billion, while its gross revenue reached $6.63 billion, up 19% from the same period last year.

According to regulatory filings, the company's fiscal 2023 pre-tax profit was $658 million, with $5.32 billion in creator rewards. Radvinsky is listed as the sole shareholder of OnlyFans' parent company, Fenix International, a London-based business.

When OnlyFans announced plans to outlaw pornography on the network in 2021, it provoked a fierce outcry from content publishers. With the statement that it had "secured assurances necessary to support our diverse creator community", the business cancelled these intentions.

Since then, the business has been working to shift away from adult-orientated content by hiring a number of non-porn content producers and introducing OFTV, a free streaming service with original programming that is safe for work.