CNBC AI News, July 8 – In a move that could shake up the digital content landscape, OnlyFans, the world’s largest adult content platform boasting over 300 million users, is reportedly up for sale with a rumored price tag of approximately $8 billion USD.
Sources close to the matter indicate that Leo Radvinsky, the billionaire owner and operator of the video-sharing site, is actively engaging with prospective banks and investment firms as he seeks to divest his stake in the company. This development has caught the attention of the financial world, with some investment research firms suggesting that the proposed valuation might represent an undervaluation, potentially driven by ongoing regulatory compliance concerns.
When viewed against its impressive financial performance, an $8 billion valuation does appear rather conservative. OnlyFans currently supports a vibrant ecosystem of 4 million creators and caters to a massive fanbase of 305 million users. For the 2024 fiscal year, the platform generated $1.3 billion in revenue, marking a significant 20% increase year-over-year. Furthermore, its pre-tax profits saw a substantial jump of 25%, reaching $658 million. These figures translate to a valuation multiple of approximately 6 times sales and 12 times earnings, metrics that many in the industry would consider attractive for rapid growth.
For Radvinsky, navigating the persistent scrutiny and compliance challenges inherent in the adult entertainment industry has likely been a complex undertaking. From this perspective, the opportunity to swiftly effect a transaction and realize liquidity at a reported $8 billion, while potentially leaving significant upside on the table, could be viewed as a strategically sound decision, allowing for a timely exit from a demanding operational environment.
Original article, Author: Tobias. If you wish to reprint this article, please indicate the source:https://aicnbc.com/4206.html
