Leonid Radvinsky, the billionaire owner behind OnlyFans, has quietly put the popular adult content platform up for sale. However, the London-based company is reportedly having a tough time attracting buyers for its explicit business model.
Radvinsky, a computer programmer in his 40s who purchased OnlyFans in 2019, is looking to offload the platform, according to Forbes. Originally from Odessa, Ukraine, he moved to Chicago as a child, and now resides in a Miami penthouse with his wife. He recently pocketed an astonishing $472 million in dividends for the fiscal year ending November 2023.
This significant sum is part of nearly all the $485 million profit generated that same year, with the company employing around 40 staff members. Between 2021 and 2023, Radvinsky’s overall earnings from Fenix International Ltd., which owns OnlyFans, reportedly exceeded $1 billion based on the latest UK financial statements.
A representative from OnlyFans has confirmed that the platform is indeed for sale. She noted that the platform has been a trailblazer in the creator economy, stating, “It’s not surprising that we’re discussing how to build on our success, as is typical for a business of this size.”
Despite the lucrative profits, the adult content space often sees valuation multiples capped at about 3 to 5 times EBITDA. Estimates suggest that OnlyFans could be valued between $1.46 billion and $2.42 billion, but the premium seems hard to justify in such a niche sector.
One source revealed, “We’re looking for billionaires who can view us as platforms for adult content rather than as adult businesses, yet many still perceive OnlyFans as primarily an adult content site.”
OnlyFans CEO Keily Blair mentioned that a notable 59% of revenues come from creators offering additional services like per-view messages and live streams, while 41% derive from subscriptions. The platform doesn’t exist in app stores, avoiding revenue sharing with giants like Apple or Google. A significant portion of its revenue, around $863 million out of $1.3 billion, comes from US customers.
In recent years, other adult content platforms for sale have struggled to pique the interest of major investors. For instance, Pornhub, one of the most visited websites globally, took about three years to find buyers in 2023 after being on the market, as reported by industry insiders.
Private equity firms like Ethical Capital Partners, established by anonymous investors, ultimately acquired MindGeek, the parent company of Pornhub. Although the exact sale price hasn’t been disclosed, insiders indicate it fell short of $1 billion.
Many private equity firms have stayed away from companies like Pornhub, primarily because their investors include groups that cannot engage with adult content ventures.
In a related note, Playboy was spun off in 2021 by a publicly traded blank-check firm at a valuation of about $108 million, but historically it was valued at around $200 million in its earlier glory days, which translates to approximately $1.6 billion in today’s terms.
Following serious allegations concerning illegal content, major payment processors like Visa and Mastercard halted transactions for Pornhub, pushing the site to shut down its premium service.
Blair insists that the company is diligent about preventing minors from becoming creators or clients, acknowledging that “there are definitely risks in our business,” but noting similar challenges exist with more conventional social media platforms.
Leonid Radvinsky acquired OnlyFans from Tim Stokely and his family, who founded the site in 2016 as a venue for artists and influencers, lifting a porn ban a year later that led to explosive growth.
During the pandemic, OnlyFans saw a remarkable surge, but Radvinsky nearly imposed a ban on sexually explicit content in 2021 due to pressure from financial institutions, though he reversed that decision shortly after.
The platform stands on the protection granted by Section 230 of the Communications Decency Act, claiming immunity from liability for content uploaded by its vast base of creators.
Yet, there are rising concerns over whether the platform’s ignorance about creator behavior can be legally defended. Industry sources suggest scrutiny is intensifying around monitoring content.
