OnlyFans owner Fenix International Ltd is in advanced negotiations to sell the company to an investor group led by Forest Road Company at a valuation of approximately $8 billion, sources familiar with the matter confirmed for Reuters. 

The London-based subscription platform, which enables creators to charge subscribers for content and retains 20% of earnings, has drawn interest from multiple suitors in recent months.

Discussions with the Los Angeles-based investment firm have been ongoing since at least March, with sources indicating a deal could materialize within the next few weeks. An initial public offering remains under consideration as an alternative path forward.

The platform’s financial performance underpins investor interest. According to British regulatory filings, Fenix International generated $6.6 billion in revenue for the year ending November 2023, representing approximately 1,660% growth from $375 million in 2020.

Forest Road, founded in 2017, specializes in media, renewable energy, and digital assets investments. Some Forest Road executives previously participated in a special purpose acquisition company that explored taking OnlyFans public in 2022.

The potential sale comes as OnlyFans’ founder, Tim Stokely, recently launched Subs.com, a competing subscription platform maintaining the same 80/20 revenue split model. Stokely positions his new venture as addressing limitations in existing platforms by combining free and paid content options.

Regulatory Issues

The transaction discussions occur against a backdrop of increasing scrutiny. OnlyFans faces class-action lawsuits alleging subscriber fraud related to third-party account management practices. Additionally, U.S. and British lawmakers have called for stricter safeguards following investigations into content moderation concerns.

Under Britain’s new Online Safety Act, non-compliant platforms can face fines up to £18 million or 10% of global revenue.

The company’s sole shareholder, Leonid Radvinsky, who acquired OnlyFans in 2018, has reportedly paid himself at least $1 billion in dividends over the past three years.

Checkout Our Latest Podcast