Create Music Group has acquired a minority stake in DistroKid, Billboard can confirm.
The deal, which went down earlier this year, comes several months after CVC Capital Partners announced it had acquired a majority stake in the DIY distribution platform. That agreement was announced in July; while no terms were disclosed, MBW reported in January that DistroKid was exploring a sale at a valuation of roughly $2 billion. MBW was also first to report the Create deal.
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In a statement sent to Billboard about the DistroKid minority acquisition, Create CEO and co-founder Jonathan Strauss said, “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.”
In March, Create announced it had raised $450 million through a combination of equity investments and debt capital, valuing the company at $2.2 billion. At the time, the company said it had invested more than $500 million over the previous year on acquisitions, advances and other growth initiatives. This included a $300 million investment in Canadian indie Nettwerk Music Group to support the label’s managers in buying out their existing investors. Prior to that deal, Create acquired the electronic labels Monstercat, !K7 and Cr2, along with deadmau5’s publishing and master recording catalogs and a 50% stake in the U.K. dance label and publisher Enhanced Music.
At the time of the March fundraising announcement, Strauss said in a statement that the $450 million would “not only accelerate our roadmap, expanding our footprint in media, IP and technology, but also empower our partners to build generational businesses that redefine culture and value creation across the global entertainment ecosystem.”
Create’s investors include Flexpoint Ford, Ares Management and 2 Mile. The company also operates the digital entertainment and marketing agency Flighthouse and indie music distribution platform Label Engine.
