Create Music Group has taken a minority share in DistroKid, joining CVC Capital Partners as an investor in the music distribution firm. The Los Angeles company confirmed the deal through CEO Jonathan Strauss, but kept the size and price of its investment private.
CVC holds the majority share after closing its deal through the Capital Partners IX fund. Insight Partners, an investor already tied to DistroKid, has kept a large minority interest. Phil Bauer remains president and leads the business.
Strauss sees a good fit between the firms. Create works with established indie artists and labels, while DistroKid helps musicians get their first tracks out. He expects the link with CVC to help the platform grow.
And Create has been quite busy buying music assets. Its recent deals span !K7 Music in Berlin, electronic music brand Monstercat, UK dance label Cr2, and catalogs tied to deadmau5 and Mau5trap Records.
Nettwerk Music Group also joined its investment plans, with Create pledging more than $300 million to the Vancouver company. That adds another major name to its list of music business deals.
The cash backing these moves is no small sum. Flexpoint Ford led a $165 million round that valued Create at $1 billion. A later raise brought in over $450 million through equity and debt, pushing its valuation to $2.2 billion.
Despite those outside investments, Create's founders still hold majority control. Ares Management, 2 Mile, and Flexpoint Ford each have smaller shares. CFO Will Smith said the extra funds would help pay for deals, tech work, and growth abroad.
DistroKid has a big role in the indie music scene as well. Philip Kaplan started the New York firm before moving into the chairman's role, leaving Bauer in charge of daily operations.
The company claims it handles about 40% of all fresh music released across the globe. That scale helps explain investor interest, though it remains DistroKid's stated figure.
Earlier sale talks had also put a possible $2 billion price on the business. That figure came from deal discussions, not a confirmed final valuation, and CVC has kept its purchase terms private.
But DistroKid also faces a legal dispute with Universal Music Group. UMG filed a case in Delaware, accusing the distributor of copyright breaches and misleading business practices.
The label group further claims that AI-made tracks on the platform divert listeners and royalty cash away from legitimate artists and rights holders. Those remain allegations, not court findings, and DistroKid has a pending deadline to answer the complaint.
CVC holds the majority share after closing its deal through the Capital Partners IX fund. Insight Partners, an investor already tied to DistroKid, has kept a large minority interest. Phil Bauer remains president and leads the business.
Strauss sees a good fit between the firms. Create works with established indie artists and labels, while DistroKid helps musicians get their first tracks out. He expects the link with CVC to help the platform grow.
And Create has been quite busy buying music assets. Its recent deals span !K7 Music in Berlin, electronic music brand Monstercat, UK dance label Cr2, and catalogs tied to deadmau5 and Mau5trap Records.
Nettwerk Music Group also joined its investment plans, with Create pledging more than $300 million to the Vancouver company. That adds another major name to its list of music business deals.
The cash backing these moves is no small sum. Flexpoint Ford led a $165 million round that valued Create at $1 billion. A later raise brought in over $450 million through equity and debt, pushing its valuation to $2.2 billion.
Despite those outside investments, Create's founders still hold majority control. Ares Management, 2 Mile, and Flexpoint Ford each have smaller shares. CFO Will Smith said the extra funds would help pay for deals, tech work, and growth abroad.
DistroKid has a big role in the indie music scene as well. Philip Kaplan started the New York firm before moving into the chairman's role, leaving Bauer in charge of daily operations.
The company claims it handles about 40% of all fresh music released across the globe. That scale helps explain investor interest, though it remains DistroKid's stated figure.
Earlier sale talks had also put a possible $2 billion price on the business. That figure came from deal discussions, not a confirmed final valuation, and CVC has kept its purchase terms private.
But DistroKid also faces a legal dispute with Universal Music Group. UMG filed a case in Delaware, accusing the distributor of copyright breaches and misleading business practices.
The label group further claims that AI-made tracks on the platform divert listeners and royalty cash away from legitimate artists and rights holders. Those remain allegations, not court findings, and DistroKid has a pending deadline to answer the complaint.
