Billionaire owner of OnlyFans Leonid Radvinsky has listed the infamous adult content site for sale. Even as he quadrupled his net worth to $3.8 billion, the sale was complicated by the site’s salacious content, according to sources that spoke with the New York Post.
The Rise of OnlyFans and Radvinsky’s Billion-Dollar Fortune
Radvinsky, who immigrated from Ukraine and is a Northwestern University economics alumnus, purchased OnlyFans in 2019. Founded originally by Tim Stokely and family members in 2016 as a site for musicians and influencers, the website’s turnaround started when Radvinsky removed its prohibition on pornography in 2017, igniting a boom in growth.
Under his ownership, OnlyFans is a creator economy powerhouse that earned him $472 million in dividend earnings for the year ending November 2023. The company reportedly has around 40 employees and paid more than $1 billion to creators between 2021 and 2023 through its holding company, Fenix International Ltd.
Struggling to Find a Buyer for an X-Rated Giant
While the site’s financial success cannot be denied, selling to a buyer has been challenging. “You’re trying to find billionaires and selling it as not an adult content company but just a platform like X that hosts adult content,” a source familiar with the situation said. “But I think most people currently perceive OnlyFans as an adult content company.”
Estimates place the sale price at between $1.46 billion and $2.42 billion. Nevertheless, the adult content business model of the site deters prospective buyers who might not wish to touch the stigma or regulatory liabilities associated with such content.
Business Model and Revenue Streams of OnlyFans
OnlyFans CEO Keily Blair pointed out that 59% of the site’s income is generated by creators selling add-on products such as pay-per-view messages and live streams, while 41% is earned from subscriptions. The company takes a 20% commission from its 4 million creators who create content for a subscriber base of 300 million.
OnlyFans boosts its revenue efficiency by avoiding revenue sharing with Apple or Google, choosing not to list on their app stores. Per UK financial reports, roughly two-thirds of the company’s $1.3 billion revenue, some $863 million, derives from US clients.
Challenges and Controversies
The COVID-19 pandemic further boosted OnlyFans’ popularity, as creators turned to digital platforms for income. Radvinsky briefly banned sexually explicit content during this period but reversed the decision within days, acknowledging the site’s primary revenue source.
Despite its success, OnlyFans remains controversial due to its explicit content, posing challenges for long-term sustainability and sales prospects. The platform’s adult reputation complicates rebranding efforts and alienates some potential investors.
