Create Music Group Takes Minority Stake in DistroKid

Create Music Group acquired a minority stake in DistroKid, and Billboard confirmed the deal. The deal went down earlier in the year and came several months after CVC Capital Partners announced it had acquired a majority stake in DistroKid. The CVC majority stake agreement was announced in July, and MBW reported in January that DistroKid was exploring a sale at a valuation of roughly $2 billion.

Create CEO and co-founder Jonathan Strauss said Create is excited to partner with CVC as a minority investor in DistroKid and to support its continued growth. In March, Create announced it had raised $450 million through equity investments and debt capital, valuing the company at $2.2 billion. Create invested $300 million in Canadian indie Nettwerk Music Group to support the label's managers in buying out their existing investors. Create's investors include Flexpoint Ford, Ares Management and 2 Mile.