Architect Capital in Talks for OnlyFans Majority Stake

Key Deal Highlights

OnlyFans is reportedly in exclusive negotiations to sell a nearly 60% majority stake to investment firm Architect Capital. The deal values the social media platform at approximately $5.5 billion, including debt, according to sources familiar with the matter.

Transaction Overview

Excluding debt, the transaction values OnlyFans at nearly $3.5 billion. Architect Capital reportedly sees potential in enhancing the platform's payment infrastructure for its creators. A presentation to investors also suggested a potential path for an OnlyFans IPO by 2028. The platform currently generates almost $1.6 billion in annual net revenue.

Market Implications and Background

This development follows previous discussions where OnlyFans' parent company, Fenix International Ltd, explored a sale at a valuation of around $8 billion. The platform, which gained massive popularity during the pandemic, is owned by sole shareholder Leonid Radvinsky. It operates by taking a 20% commission from creators' earnings.

Summary

The potential acquisition could signal a strategic shift for OnlyFans, focusing on financial technology and a formal public offering. Market participants will monitor the final terms and its impact on the creator economy.

FAQ

Q: Who is in talks to buy a majority stake in OnlyFans?
A: San Francisco-based investment firm Architect Capital is in exclusive talks.

Q: What is the reported valuation of OnlyFans in this deal?
A: The platform is valued at around $5.5 billion including debt, and nearly $3.5 billion excluding debt.

Source: Reuters via Investing.com