OnlyFans weighs $8 billion sale amid content risks and AI opportunity

OnlyFans is exploring a potential $8 billion sale, far below valuations of similar content platforms, largely due to its porn-focused reputation. The company generates over $1 billion in annual dividends and had a 50% profit margin in 2023, suggesting it could be worth $30 to $45 billion if valued like mainstream media companies. However, risks include regulatory scrutiny, content moderation challenges, and potential competition from AI-driven sex chatbots and platforms like Elon Musk’s X. OnlyFans is allowing AI-generated content and may use AI to enhance moderation and engagement. Despite these opportunities, the site's heavy reliance on volatile microtransactions adds revenue uncertainty, keeping institutional investors wary.