OnlyFans, the prominent platform where creators engage with their audiences through subscription-based content, is reportedly considering a significant sale of its majority stake to Architect Capital, an investment firm. This potential transaction could value the platform at an impressive $5.5 billion, according to sources familiar with the negotiations.
Of the estimated $5.5 billion valuation, $3.5 billion is expected to be equity while $2 billion would be classified as debt. This arrangement would grant Architect Capital a 60% ownership in the company. Currently, both parties are in exclusive discussions, preventing OnlyFans from exploring offers from other potential investors for a designated timeframe. The timeline for finalizing this agreement remains uncertain.
TechCrunch has reached out to Architect Capital for further insights regarding this development.
This is not the first instance where OnlyFans has explored selling its business. In previous discussions reported by various outlets, Leonid Radvinsky, the site's billionaire owner, was noted to be seeking buyers. Earlier reports indicated that Fenix International Ltd., the parent company of OnlyFans, was in talks with U.S.-based investors, although the outcomes of those discussions remain unclear.
Architect Capital, established in 2021, specializes in asset-based lending, providing financial support secured by company assets, and aims to collaborate with early-stage startups.
While many creators on OnlyFans produce adult content, the platform asserts that it is not merely a pornography site. Founded in 2016 by Tim Stokely, who initially served as CEO, OnlyFans has navigated various challenges, including legal controversies over its content.