Potential Sale of OnlyFans to US Investor Group

Potential Sale of OnlyFans to US Investor Group

OnlyFans, the adult content platform owned by Fenix International, Ltd., is being considered for sale to a US-based investor group led by Forest Road Company, according to sources familiar with the matter.

Background on the Sale

The potential sale of OnlyFans comes as Fenix International seeks ways to raise capital and reduce debt. The company has been valued at around $8 billion in recent months.

About Forest Road Company

Forest Road describes itself as "not your average investment firm," emphasizing its approach to embrace "complexity and creativity to extract value where others see limitations." The company focuses on media & entertainment and digital assets, making its interest in OnlyFans understandable.

Current Status of Negotiations

  • Seriousness of Discussions: Reuters could not determine how serious discussions with other potential buyers are or whether they will lead anywhere. Other bidders may have emerged since talks began several weeks ago.
  • Founding and Growth: OnlyFans was founded in 2016 by Tim Stokely and has experienced rapid growth, particularly during the COVID-19 pandemic when many sought new forms of entertainment.

Key Events in OnlyFans’ History

  • Content Policy Changes: In 2021, OnlyFans announced a ban on adult content due to pressure from banks over payment processing fees. This decision was later reversed following backlash from creators who depend on these payments for their income.
  • Funding and Valuation: Fenix International raised $175 million last year from investors, including SoftBank Group Corp’s Vision Fund II, at a valuation of around $2 billion. Earlier this year, they raised over $100 million at a higher valuation, bringing total funding raised this year to above $500 million.

Conclusion

Reuters could not determine the potential price range for any deal or whether negotiations are ongoing between Forest Road and Fenix International executives regarding terms such as post-deal ownership stakes. A spokesperson for Fenix declined to comment, and representatives of Forest Road did not respond outside regular business hours.

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