Photo Credit: Jonathan Strauss, Co-Founder and CEO of Create Music Group
Create Music Group acquires a minority stake in DistroKid shortly after CVC Captal Partners became DistroKid’s majority owner back in July.
Create Music Group has acquired a minority stake in music distribution platform DistroKid, the company confirmed on Wednesday. The transaction closed after CVC Capital Partners became DistroKid’s majority owner back in July. The terms of that deal were not disclosed, but in January, DistroKid was reportedly exploring a sale at an approximate $2 billion valuation.
“Create is home to some of the world’s largest and most storied independent record labels and artists, and DistroKid is where countless artists begin their careers. We’re excited to partner with CVC as a minority investor in the company and to support its continued growth,” said Create CEO and co-founder Jonathan Strauss.
Create Music made an announcement in March that it had raised $450 million in equity and debt funding at a $2.2 billion valuation. Strauss stated at the time that the funds would be used to expand the company’s presence in media, technology, and intellectual property.
Over the preceding year, the company said it had invested over $500 million in acquisitions, advances, and other initiatives. These include a $300 million investment in Canadian independent label Nettwerk Music Group to buy out existing investors.
The company’s other transactions include acquiring the electronic labels Cr2, !K7, and Monstercat; deadmau5’s publishing and masters; and a 50% stake in UK dance label and publisher Enhanced Music.
Among Create’s investors are Ares Management, 2 Mile, and Flexpoint Ford, the latter of which led a $165 million investment round in Create back in 2024, which valued the company at $1 billion.
The company also operates distribution platform Label Engine and digital marketing agency Flighthouse.
The timing is interesting for DistroKid, which is currently embroiled in a very contentious legal battle with Universal Music Group. UMG alleged in court documents last month that “DistroKid is engaged in both deceptive trade practices and blatant copyright infringement” and that the company is “flooding platforms with AI-generated ‘slop’ that siphons revenue and listeners from the legitimate artists and rightsholders.”
DistroKid has until December 4 to respond to that complaint. The distributor is also getting subpoenaed as part of UMG’s escalating battle against AI giant Suno.
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