{"id":24443,"date":"2026-10-29T04:23:52","date_gmt":"2026-10-29T04:23:52","guid":{"rendered":"https:\/\/interspacemusic.com\/blog\/?p=24443"},"modified":"2026-10-29T17:15:41","modified_gmt":"2026-10-29T17:15:41","slug":"create-music-group-takes-minority-stake-in-distrokid","status":"publish","type":"post","link":"https:\/\/interspacemusic.com\/blog\/create-music-group-takes-minority-stake-in-distrokid\/","title":{"rendered":"Create Music Group Takes Minority Stake in DistroKid"},"content":{"rendered":"<p><strong><a href=\"https:\/\/createmusicgroup.com\/\">Create Music Group<\/a><\/strong> has acquired a minority stake in <strong>DistroKid<\/strong>, the company confirmed Wednesday. The investment follows <strong><a href=\"https:\/\/www.cvc.com\/\">CVC Capital Partners<\/a><\/strong> becoming the music distributor\u2019s majority owner in July.<\/p>\n<p>Terms of CVC\u2019s transaction were not disclosed. In January, DistroKid was reportedly considering a sale at a valuation of approximately <strong>$2 billion<\/strong>.<\/p>\n<p>\u201cCreate is home to some of the world\u2019s largest and most storied independent record labels and artists, and DistroKid is where countless artists begin their careers. We\u2019re excited to partner with CVC as a minority investor in the company and to support its continued growth,\u201d said Create CEO and co-founder Jonathan Strauss.<\/p>\n<h2>Create\u2019s recent investments<\/h2>\n<p>In March, Create announced that it had raised <strong>$450 million<\/strong> in equity and debt funding at a <strong>$2.2 billion<\/strong> valuation. Strauss said the funding would support expansion in media, technology and intellectual property.<\/p>\n<p>Create\u2019s other transactions include acquisitions of electronic labels Cr2, !K7 and Monstercat, as well as deadmau5\u2019s publishing and master recordings. It also acquired a <strong>50% stake<\/strong> in United Kingdom dance label and publisher Enhanced Music.<\/p>\n<p>Create\u2019s investors include Ares Management, 2 Mile and Flexpoint Ford. Flexpoint Ford led a <strong>$165 million<\/strong> investment round in 2024 that valued Create at <strong>$1 billion<\/strong>. Create also operates distribution platform Label Engine and digital marketing agency Flighthouse.<\/p>\n<h2>DistroKid\u2019s legal dispute<\/h2>\n<p>DistroKid is involved in a legal dispute with <strong><a href=\"https:\/\/www.universalmusic.com\/\">Universal Music Group<\/a><\/strong> (UMG). In court documents filed last month, UMG alleged that \u201cDistroKid is engaged in both deceptive trade practices and blatant copyright infringement\u201d and is \u201cflooding platforms with AI-generated \u2018slop\u2019 that siphons revenue and listeners from the legitimate artists and rightsholders.\u201d<\/p>\n<p>DistroKid has until <strong>December 4<\/strong> to respond to the complaint. It is also being subpoenaed as part of UMG\u2019s dispute with artificial intelligence company Suno.<\/p>\n","protected":false},"excerpt":{"rendered":"Create Music Group has acquired a minority stake in DistroKid after CVC Capital Partners became the distributor&#8217;s majority owner.","protected":false},"author":1,"featured_media":24444,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"csco_display_header_overlay":false,"csco_singular_sidebar":"","csco_page_header_type":"","csco_page_load_nextpost":"","csco_post_video_location":[],"csco_post_video_location_hash":"","csco_post_video_url":"","csco_post_video_bg_start_time":0,"csco_post_video_bg_end_time":0,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[512],"tags":[],"class_list":["post-24443","post","type-post","status-publish","format-standard","has-post-thumbnail","category-industry-news","cs-entry","cs-video-wrap"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.8 - 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