OnlyFans owner Fenix International Ltd is in talks to sell the porn-driven company to an investor group at a valuation of around $8 billion, three sources familiar with the matter told Reuters. The group is led by the Forest Road Company, a Los Angeles-based investment firm, the sources said. Reuters could not identify the investors in the group.

The investor group and current deal value have not previously been reported.

In the year ended November 2023, the company generated $6.6 billion in revenue, according to a filing with British regulators. That is up from $375 million in 2020, and this rapid growth has attracted investor interest.

  • MagicShel@lemmy.zip
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    5 days ago

    Yeah, a 1.25 year ROI is insane. There has to be something going on behind the scenes. The potential anti-porn legislation would be a significant risk, I guess?

    • mosiacmango@lemm.ee
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      5 days ago

      Normally “revenue vs profit” would be the missing link here. You make 6 billion, but pay out 5 billion. Total net is 1 billion. Getting 8x your yearly profit for your business is a reasonable price.

      With onlyfans, they take a 20% cut, so the numbers above basically line up. They got paid 1.2 billion, and probably spent 200 million on operations as a giant video/media host.

      • MagicShel@lemmy.zip
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        5 days ago

        Yep. I knew that and messed it up anyway. I wish they would just say profit. Who gives a fuck about raw revenue when talking about the value of a company. Unless you’re talking about reducing costs to increase profits, revenue doesn’t fucking matters.

        • Skiluros@sh.itjust.works
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          5 days ago

          While profitability is key, revenue are actually extremely important. Case in point; many of the American tech companies that initially focus on scale/market share to the detriment of all other indicators.