OnlyFans, the major adult creator network where performers and influencers sell subscription content directly to fans, is considering selling a majority stake of its business to the investment firm Architect Capital. This information comes from a source close to the deal who spoke with TechCrunch. The proposed deal would value the platform at $5.5 billion.
According to the source, that $5.5 billion valuation breaks down into $3.5 billion in equity and $2 billion in debt. Under these terms, Architect Capital would assume a 60 percent stake in the business. The two parties are currently in an exclusivity period, meaning OnlyFans is barred from negotiating with other potential buyers for a set time. The timeline for completing the deal remains unclear. These negotiations were previously reported by the Wall Street Journal.
This is not the first time OnlyFans has been in talks to sell recently. Last year, reports indicated that Leonid Radvinsky, the billionaire owner of the site, was looking to cash out and was courting potential buyers. Further reporting showed that the platform’s parent company, Fenix International Ltd., was in discussions with a U.S.-based investor group led by the Los Angeles firm Forest Road Company. It is unclear what happened to those discussions, though the source noted there have been a number of interested parties since OnlyFans announced its desire to sell a majority stake.
The potential partner in this new deal, Architect Capital, launched in 2021 as an asset-based lender. This type of firm provides loans secured by company assets and looks to partner with early-stage startups.
OnlyFans maintains that it is not a pornography website, despite the fact that a majority of its creators produce adult content. The British firm was founded in 2016 by Tim Stokely, who also served as its initial CEO. Stokely sold a majority stake of the parent company, Fenix International, to Radvinsky in 2018. Over the years, the platform has been involved in various legal controversies, including lawsuits accusing the site of profiting from abusive videos.