OnlyFans’ billionaire owner, Leonid Radvinsky, is reportedly struggling to find a buyer for the highly profitable platform due to its X-rated business model, despite massive profits and a user base of 300 million subscribers

[dropcap]T[/dropcap]he billionaire owner of OnlyFans, Leonid Radvinsky, has reportedly put the highly profitable adult content platform up for sale, but is struggling to find a buyer due to its X-rated business model, The Post has learned.

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Despite generating massive profits that have propelled Radvinsky’s net worth to $3.8 billion, sources close to the situation indicate the company faces unique challenges in the market.

Radvinsky, a 40-something computer programmer who acquired OnlyFans in 2019, reaped an eye-popping $472 million in dividends from the platform during the fiscal year ended November 2023, nearly all of the $485 million in profits generated that year.

From 2021 to 2023, his total payouts from OnlyFans’ holding company, Fenix International Ltd., exceeded $1 billion.

An OnlyFans spokeswoman stated, “OnlyFans is a revolutionary platform which continues to lead the creator economy.

As with any business of this scale it is natural that we are open to discussions about how we continue to build on our success.”

You’re looking to find billionaires and trying to sell it as not an adult content company but just a platform like X that allows adult content. But I think most people right now view OnlyFans as an adult content company.

However, the “filth factor” inherent in porn businesses typically limits their valuation to a modest three to five times Ebitda, according to an industry source.

This would peg OnlyFans at between $1.46 billion and $2.42 billion, a premium in the adult content sector that makes finding a deep-pocketed buyer difficult.

Insiders suggest potential buyers are attempting to frame it as a general content platform like X (formerly Twitter) that allows adult content, rather than primarily an adult content company.

OnlyFans CEO Keily Blair noted that 59% of revenue comes from creators selling add-on services like pay-per-view messages and live streams, with 41% from subscriptions.

The company takes a 20% cut from its 4 million creators, who cater to 300 million subscribers. Notably, the site is not available on app stores, meaning no revenue is shared with Apple or Google.

Two-thirds of its $1.3 billion revenue is generated from US customers.

The adult content industry has seen similar sales struggles. Pornhub, once the 19th most visited website globally, took about three years to find a buyer in 2023, with the final price falling well short of $1 billion.

Private equity firms often steer clear due to restrictions from investors like state pensions, and media businesses are wary of the “porn taint.”

OnlyFans relies on Section 230 of the Communications Decency Act, which protects platforms from liability for content generated by users.

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However, questions are emerging about whether the company’s alleged “willful ignorance” regarding creator activities might erode this legal protection as pressure to monitor sites intensifies.