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As Axios reported today, OnlyFans has already held talks with multiple special purpose acquisition companies (SPAC) to pursue a merger. OnlyFans operates as a content creator platform that is most known for hosting adult content. It seems the adult content backbone of OnlyFans may scare off some SPAC targets, as it raises environmental, social and governance (ESG) concerns.
Last year, OnlyFans announced that it was raising capital.
At the time, the platform struggled to find investors due to its adult content. Afterwards, the company announced a ban on adult content. OnlyFans stated that its banking and payment partners refused to work with it unless it banned the content. It quickly reversed this decision after creators on the platform expressed their disapproval. Subsequently, OnlyFans stated that it had come to a compromise with its banking and payment partners to allow adult content on the site.
With that in mind, let's jump into the details on a potential OnlyFans SPAC merger.
11 Things to Know About a Potential OnlyFans SPAC Merger
- OnlyFans held talks with Forest Road Acquisition II (NYSE:FRXB). However, the two parties are no longer communicating.
- Last year, OnlyFans brought in estimated revenue of $1.2 billion. Revenue is expected to more than double this year to $2.5 billion.
- Furthermore, last year's gross merchandise value (GMV) was estimated to be $5.9 billion. GMV for this year is expected to be $12.5 billion.
- As a result, the company's 2021 take-rate can be estimated at an impressive 20%.
- From inception to March 2021, OnlyFans has paid its creators over $3.2 billion.
- More than 300 creators earn more than $1 million annually, while more than 16,000 creators earn at least $50,000 annually.
- Meanwhile, the platform boasts an average paying monthly users figure of 7 million.
- According to Axios, OnlyFans wants to pivot to focus less on adult content. The company wants to be "like a combination of Patreon and TikTok."
- Last year, the company launched OFTV in an attempt to provide more professional content.
- Investment concerns surrounding OnlyFans include minors creating accounts and brands being wary of partnering with the platform due to its content.
- Many of OnlyFan's employees are based in Ukraine. Its majority owner is Leo Radvinsky, who Axios calls "a controversial American of Ukrainian descent" due to his background in the adult industry.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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