www.lesswrong.com/posts/XTHa5C6SgGKYopH7o/who-got-breasts-first-and-how-we-got-t...
1 correction found
OnlyFans has a $3 billion market cap.
OnlyFans is privately held, so it does not have a public market capitalization. Recent coverage described it as having about a $3.15 billion private-company valuation, which is a different concept.
Full reasoning
This sentence mixes up market capitalization with private-company valuation.
Why it's incorrect:
- Market capitalization is the value of a company based on the market price of its outstanding shares of stock. FINRA defines it as the total value of a company's outstanding shares and explains it is calculated from a company's current stock price.
- OnlyFans' parent company, Fenix International Ltd., is a private limited company, not a publicly traded company.
- Because OnlyFans is private, it does not have a public stock price and therefore does not have a public market cap in the usual financial sense.
- What recent reporting said is that a minority-stake sale valued OnlyFans at about $3.15 billion. That is a valuation, not a market capitalization.
So the post's numeric gist may be gesturing at a recent valuation, but the specific claim that OnlyFans has a "$3 billion market cap" is factually wrong.
3 sources
- Market Cap Explained | FINRA.org
Market capitalization, or market cap, is one measurement of a company's size. It's the total value of a company's outstanding shares of stock... To calculate market cap, you take the total number of a company's shares outstanding and multiply that figure by the company's current stock price.
- FENIX INTERNATIONAL LIMITED overview - GOV.UK Companies House
Company Overview for FENIX INTERNATIONAL LIMITED (10354575)... Company status Active... Company type Private limited Company.
- OnlyFans Valued at $3.15 Billion in Deal to Sell Minority Stake to Architect Capital
The deal announced by U.K.-based Fenix International Ltd., owner and operator of OnlyFans, gives the company a $3.15 billion valuation.