Create Music Group has acquired a minority stake in DistroKid, the company confirmed Wednesday. The investment follows CVC Capital Partners becoming the music distributor’s majority owner in July.
Terms of CVC’s transaction were not disclosed. In January, DistroKid was reportedly considering a sale at a valuation of approximately $2 billion.
“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’s recent investments
In March, Create announced that it had raised $450 million in equity and debt funding at a $2.2 billion valuation. Strauss said the funding would support expansion in media, technology and intellectual property.
Create’s other transactions include acquisitions of electronic labels Cr2, !K7 and Monstercat, as well as deadmau5’s publishing and master recordings. It also acquired a 50% stake in United Kingdom dance label and publisher Enhanced Music.
Create’s investors include Ares Management, 2 Mile and Flexpoint Ford. Flexpoint Ford led a $165 million investment round in 2024 that valued Create at $1 billion. Create also operates distribution platform Label Engine and digital marketing agency Flighthouse.
DistroKid’s legal dispute
DistroKid is involved in a legal dispute with Universal Music Group (UMG). In court documents filed last month, UMG alleged that “DistroKid is engaged in both deceptive trade practices and blatant copyright infringement” and 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 the complaint. It is also being subpoenaed as part of UMG’s dispute with artificial intelligence company Suno.
