Reuben Brothers in Talks to Back OnlyFans Bid

The Reuben brothers are in talks to join a bid to take control of OnlyFans. The billionaire property moguls are considering investing hundreds of millions of dollars through a holding company.

David and Simon Reuben are in discussions with a consortium led by Los Angeles-based The Forest Road Company, according to reports.

The group is exploring a deal to acquire a majority stake in OnlyFans, which could value the platform at up to £5.2 billion.

The family’s business empire is weighing backing a special purpose acquisition vehicle created by Forest Road. At least a dozen parties are believed to be considering joining the consortium.

A person close to the Reuben Brothers said that there were no talks for them to take a leading or majority stake in the company. The family had not yet agreed to the deal and could decide not to invest.

People familiar with the talks warned that the sale process could collapse entirely or see another buyer emerge.

The billionaire brothers are among the UK’s richest families. Their investments include a minority stake in Premier League club Newcastle United and Mayfair real estate such as Burlington Arcade.

The family has also supported major British institutions. Their foundation has donated to the British Museum and National Gallery.

David’s son, Jamie Reuben, is a principal at the family investment firm and a prominent Conservative Party donor. He has also driven the family’s investments in luxury hospitality, including New York’s The Surrey Hotel and London’s Twenty Two members’ club.

OnlyFans owner Fenix International is currently exploring a large stake sale.

Its sole shareholder, Ukrainian-American billionaire Leonid Radvinsky, bought the platform from UK-based founders Tim and Guy Stokely in 2018. He is expected to retain a shareholding if a deal proceeds.

In 2022, Radvinsky considered taking OnlyFans public through a blank cheque vehicle.

He held discussions with Forest Road Acquisition Corp II, a Spac backed by Shaquille O’Neal and former Disney executive Kevin Mayer. The listing never happened.

Boutique investment bank Raine is informally advising Forest Road on raising equity for the potential deal. Raine, which focuses on US entertainment, sports and tech transactions, declined to comment.

OnlyFans has grown rapidly in recent years, fuelled by demand for adult content.

The platform takes a 20% cut of the £5.9 billion in payments processed last year, generating £500 million in pre-tax profits for 2023.

OnlyFans rejects that it is a pornography site. It pitches itself as a paid-for online platform for content creators, sports stars and celebrities.

However, its strong link to adult material has generated controversy.

In 2021, the platform considered banning explicit content before reversing its decision.

Adult content platforms have long struggled to achieve tech-level valuations. Many banks and financial institutions have shunned services tied to sex work due to compliance concerns.

The last major porn platform to change hands was Pornhub owner MindGeek, which was acquired by Canadian private equity firm Ethical Capital Partners in 2023.