OnlyFans, the popular subscription-based platform, is making headlines once again. The company is reportedly in exclusive talks to sell a majority share to an investment firm. The proposed transaction involves the company acquiring nearly 60% of OnlyFans, poised to take its creator economy to new heights.
OnlyFans Set to Sell Majority Stake to Investment Firm
The internal structure of OnlyFans, a platform that has revolutionized creator monetization, might be in for a major overhaul soon.
As reported in the Wall Street Journal, OnlyFans is in negotiations to sell a nearly 60% stake to Architect Capital, a San Francisco-based investment firm. The proposed transaction would entail Architect Capital acquiring approximately 60% ownership of OnlyFans, thereby valuing the company’s equity at circa $3.5 billion. When factoring in debt, the total enterprise value would approximate $5.5 billion.
However, nothing’s set in stone yet, and there’s a possibility it might not materialise. The parties involved could still walk away from the deal before finalising an agreement.
Architect Capital targets companies where operational improvements, particularly in financial systems, can drive growth. The firm plans to upgrade payment infrastructure for creators it considers “under-banked”, struggling with traditional banking and payment processing.
This poses a significant challenge for OnlyFans, which relies on over three million creators as its primary source of income. Yet they struggle to access mainstream financial services because of the adult nature of their content.
OnlyFans generates revenue by taking a 20% cut of creators’ earnings from subscriptions, tips, and pay-per-view content, while creators keep 80%. The platform claims to be more than just an adult site. However, it’s widely recognized for hosting adult content and supporting sex workers, as well as influencer-led paywalls.
Ownership changed hands in 2018, when tech billionaire Leo Radvinsky acquired control from OnlyFans’ UK-based founders. He has since received nearly $1 billion in dividends from the platform.
Architect Capital’s vision for OnlyFans extends beyond just cleaning it up. They’re eyeing a potential Initial Public Offering (IPO) by 2028, with internal projections showing annual net revenue of around $1.6 billion.
If the deal goes through, it’ll be one of the largest private-equity bets on the creator economy.
