OnlyFans, a large network of adult creators where performers and influencers sell subscription-based content directly to their fans, is considering selling a majority stake in the business to investment firm Architect Capital, sources close to the deal told TechCrunch. The deal will value the platform at $5.5 billion.
Of the $5.5 billion, $3.5 billion would be equity and $2 billion would be debt, the sources said. Under the terms, Architect will acquire a 60% stake in the business. Both parties have exclusive rights. This means that OnlyFans cannot negotiate with other potential buyers for a certain period of time. It is unclear what the timeline for completion of the transaction will be. These negotiations were previously reported by the Wall Street Journal.
TechCrunch has reached out to Architect Capital for comment.
This isn’t the first time OnlyFans has recently discussed selling its business. Last year, the New York Post reported that the site’s billionaire owner, Leonid Radvinsky, was looking to “cash out” and seek potential buyers. Subsequent reports indicated that the platform’s parent company, Fenix International Ltd., was in negotiations with a U.S.-based investment group led by Forest Road Company, a Los Angeles-based investment firm. Sources told TechCrunch that there have been a number of interested parties since OnlyFans announced its intention to sell a majority stake, but it is unclear how those discussions progressed.
A potential business partner in this particular deal is Architect, which is launching in 2021 as an asset-based lender (a company that provides loans using company assets as collateral) and is looking to partner with early-stage startups.
OnlyFans claims that it is not a pornographic website, despite the fact that the majority of its creators produce adult content. The British company was founded in 2016 by Tim Stokely, who was also its initial CEO. Stokely sold a majority stake in the site’s parent company, Fenix International, to Radvinsky in 2018. Over the years, the site has been hit with various legal controversies, including lawsuits accusing it of profiting from abusive videos.
