Private adult content platform, OnlyFans, supposedly up for sale at an eye-watering $8 billion figure. - Onlyfans Inevitable Sale Estimated at a Whopping $8 Billion.
OnlyFans Seeks New Owners as Platform Aims for $8 Billion Sale
In a potentially significant move, Fenix International Ltd, the owner of adult content platform OnlyFans, is reportedly in talks to sell the company to a group of investors led by Forest Road Company, a Los Angeles-based investment firm, for around $8 billion. This information has been corroborated by three individuals close to the matter who spoke to news agency Reuters. Further discussions are also taking place with other potential buyers.
Both OnlyFans and Forest Road Company declined to comment on the matter.
Recent months have seen a flurry of interest in OnlyFans, with several potential buyers expressing interest. According to documents filed with the UK's regulatory bodies, the company generated an impressive $6.6 billion in 2023, with an increase of $375 million just in 2020. This rapid growth has attracted the attention of investors, with an initial public offering (IPO) also being considered, according to the same sources.
The founder of OnlyFans, Tim Stokley, has recently expressed his intent to acquire the American operations of TikTok, reportedly with the help of a U.S. government-backed cryptocurrency network. This move comes in response to the U.S. Congress passing a law that mandates the sale of TikTok's U.S. operations due to potential national security threats. The Chinese government's stance on this sale remains unclear.
Challenges in the Sale Process of OnlyFans
The explicit nature of OnlyFans' content has presented a significant hurdle in finding a buyer. Many potential investors view the platform primarily as an adult content provider, which complicates its valuation and appeal to broader investors. Despite these challenges, a deal is reportedly possible within the next few weeks. However, other potential buyers and an initial public offering (IPO) are also being considered.
The stigma surrounding OnlyFans due to its adult content has limited its valuation to a range equivalent to three to five times its EBITDA. This makes it difficult for the platform to be perceived as a more general content platform, potentially diminishing its attractiveness to a wider range of investors. Additionally, concerns about minors accessing adult content have added scrutiny to the platform.
Sources:- Reuters- Los Angeles- TikTok (mentioned in context)
I'm not sure if a wider range of investors will be interested, given the explicit nature of OnlyFans' content, which complicates its valuation. The potential sale could still be possible within the next few weeks, but the platform's limited valuation due to its adult content stigma might pose challenges in attracting more diverse investors.
