OnlyFans IPO or SPAC merger? All you need to know

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OnlyFans IPO or SPAC merger? All you need to know

OnlyFans IPO
Image source: © Solarseven | Megapixl.com

Highlights

  • OnlyFans claims to have over 1.5 million content creators and 200 employees.
  • In 2021, OnlyFans reportedly struggled to find venture capitalists as it was looking for a strategic partner.
  • As per the company website, OnlyFans was started in 2016, and Fenix International Limited owns it.

OnlyFans, an internet content subscription service platform, is reportedly looking to go public, and it appears to have caught the attention of potential investors in the United States.

This year, the IPOs and SPAC merger market has remained weak compared to 2021. Since January, many companies have cancelled or delayed their public debut plans due to increased volatility in the market.

The news of OnlyFans' plans to go public might have attracted investors' attention as they have not seen many companies going public in 2022.

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That said, let's find out how the internet content subscription service could become a publicly traded company in future.

OnlyFans IPO or SPAC merger?

According to reports, OnlyFans is not looking for a traditional initial public offering (IPO), and it could go public through a merger with a special purpose acquisition company (SPAC).

Some reports suggest that OnlyFans could face difficulty finding SPACs due to explicit content on the platform.

The London-based online content platform was reportedly in touch with Forest Road Acquisition Corp. II, a SPAC that trades on the New York Stock Exchange (NYSE). However, it seems that the talks didn't materialize.

Significant details about OnlyFans

As per the company website, OnlyFans was started in 2016, and Fenix International Limited owns it. It claims to have more than 150 million registered users.

OnlyFans claims to have over 1.5 million content creators and 200 employees. The company claims to pay more than US$ 5 billion annually to creators.

OnlyFans reportedly had net revenue of US$ 1.2 billion, and its free cash flow was US$ 620 million in 2021. Both net revenue and free cash flow are expected to double this year.

The platform was started to cater to content creators' needs. It gives artists and content creators a chance across different genres to monetize their content and develop relationships with fans.

OnlyFans SPAC©2022 Kalkine Media® 

Bottom line

Interested investors will have to wait for some more time until the public debut plans become official, and later the company starts trading publicly after receiving all the approvals.

In 2021, OnlyFans reportedly struggled to find venture capital as it was looking for a strategic partner. It would be worth watching if the content platforms find a blank-check company for the merger.

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Please note, the above content constitutes a very preliminary observation or view based on digital trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

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