OnlyFans, the adult content streaming platform, is nearing a deal to sell a minority stake that would value the business at more than $3 billion, following the death of its owner last month, the Financial Times reports, writes UNN.
Details
According to sources familiar with the situation, the group is in active negotiations to sell a stake of less than 20 percent to San Francisco-based fund Architect Capital.
The discussed stake sale follows years of attempts to attract external investment into OnlyFans, which in recent months have been overshadowed by owner Leonid Radvinsky's battle with cancer. He passed away in late March.
The deal is expected to close as early as next month, three sources familiar with the situation said. The agreement, which would open the door for further stake sales in the future, could face last-minute hurdles, the sources added.
As a result of this decision, control of OnlyFans will remain with a family trust that currently holds Radvinsky's shares. The trust is managed by Radvinsky's widow, Cathy, who has been handling the sale process since her husband's illness and death.
One source close to the negotiations said the deal would provide greater stability for the business, which continues to be highly profitable. Last year alone, OnlyFans paid out a record $701 million in dividends.
Almost 8,000 Ukrainian creators on OnlyFans earned about UAH 5 billion in a year07.11.25, 09:49
The company was valued at more than $5 billion when it considered selling a controlling stake, but the decision to sell only a small portion of the business without a controlling stake reduced the value of that stake.
As the Wall Street Journal previously reported, Architect entered into exclusive negotiations with OnlyFans late last year to acquire a controlling stake. OnlyFans was also pursued by other bidders, including Los Angeles-based investment firm Forest Road Company, backed by British billionaires David and Simon Reuben.
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Radvinsky, at the helm of OnlyFans, "transformed the porn industry and created one of the most successful British startups," which last year earned $7.2 billion from users paying subscriptions to content creators, as well as tips and payments for special requests, the publication writes.
His death at the age of 43 left the fate of an empire valued at billions of dollars in question. The Ukrainian-American entrepreneur acquired Fenix International, the company that owns and operates OnlyFans, in 2018.
As part of the deal, OnlyFans is expected to partner with Architect to develop new financial services and products for content creators, who sometimes struggle to access traditional banking services.
Architect financed the transaction with the support of other investors through a special purpose vehicle, the publication notes.