According to Axios, OnlyFans has held negotiations with numerous blank check firms, or SPACs, regarding a merger to take it public. OnlyFans is a major social media site with millions of monthly members and billions of dollars in payments to producers. However, several potential investors and SPAC partners have been put off by its pornographic material.
Why this Move?
Since many of its employees are based in Ukraine, the company may experience labor concerns. OnlyFans’ principal owner is controversial American of Ukrainian heritage Leo Radvinsky, and the company has contributed digital currency to help those in the region with money and relocation services.
The purview of OnlyFans’ Decision
OnlyFans attempted to raise private funding last year to partially compensate Radvinsky, but the endeavor failed due to the platform’s pornographic material, according to Axios. It then declared plans to prohibit “explicit” content in the hopes of attracting investors, but after authors complained, it reversed direction. OnlyFans later replaced Tim Stokely, the company’s founder and CEO, with Amrapali “Ami” Gan, the company’s chief marketing and communications officer.
What does this mean?
OnlyFans intends to rebrand itself as a site for fans to connect directly with creators, similar to Patreon and TikTok (Kevin Mayer briefly ran the latter). This would entail pursuing more professional content in areas such as culinary, comedy, celebrities, and UFC fights. It created the streaming portal OFTV last year as a location for more professional material.
Apps like OnlyFans could benefit from such steps if it wants to increase its chances of attracting outside funding and avoid being cut off from payment processors. According to sources, OnlyFans has just recruited an executive recruiting company to assist it in scaling as it considers going public.
During pandemic-related lockdowns, OnlyFans’ popularity skyrocketed. According to an internal pitch deck obtained by Axios at the end of March 2021, the firm expects $1.2 billion in sales in 2021 and $2.5 billion in 2022. It’s unclear whether it met last year’s forecast. OnlyFans creators had been paid a total of $3.2 billion at the time, with about 16,000 of them earning at least $50,000 each year.