OnlyFans, a large adult creator network 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, people close to the deal told TechCrunch. The deal values the platform at $5.5 billion.
Of the $5.5 billion, $3.5 billion will be in equity and $2 billion in debt, the person said. Under the terms, Architect would acquire a 60% stake in the business. The parties are in an exclusive relationship and OnlyFans is prohibited from negotiating with other potential buyers for a period of time. It is unclear what the timeline will be for the transaction to close. The Wall Street Journal first reported on the negotiations.
TechCrunch has reached out to Architect Capital for comment.
This is not the first time in recent memory that OnlyFans has entered into negotiations to sell its business. Last year, the New York Post reported that the site’s billionaire owner, Leonid Radvinsky, was looking to “cash out” and was in talks with potential buyers. Subsequent reports revealed that the platform’s parent company, Phoenix International, was in talks with a group of US-based investors led by Los Angeles-based investment firm Forest Road Company. It’s unclear how those discussions played out, but sources told TechCrunch that there have been a number of interested parties since OnlyFans announced its desire to sell a majority stake.
Architect, a potential business partner in this particular deal, was founded in 2021 as an asset-based lending company (a company that provides loans backed by corporate assets) that seeks to partner with early-stage startups.
OnlyFans claims that it is not a pornographic website, despite the fact that the majority of the site’s creators produce adult content. The British company was founded in 2016 by Tim Stokely, who also initially served as CEO. Stokely sold a majority stake in the site’s parent company, Phoenix International, to Rudvinsky in 2018. The company has been dogged by various legal controversies over the years, including a lawsuit accusing the site of profiting from abusive videos.
