Create Music Group has confirmed a Create Music Group DistroKid deal that went unannounced for months. The Los Angeles company, which is backed by private capital, now holds a minority stake in the DIY distribution platform. The investment was made earlier this year alongside CVC Capital Partners‘ purchase of a majority stake in DistroKid.
Create CEO and co-founder Jonathan Strauss said the company was excited to partner with CVC as a minority investor and to support DistroKid’s growth. He also noted that DistroKid is where many artists start their careers. No financial terms were disclosed.
Inside the Create Music Group DistroKid cap table
CVC announced its majority deal in July. DistroKid’s longtime backer Insight Partners kept a significant minority stake, and that earlier investment had valued the company at $1.3 billion. Earlier in the year, DistroKid was reported to be exploring a sale at around $2 billion. Phil Bauer stays on as president.
Create’s own backers include Flexpoint Ford, Ares Management and 2 Mile. In March 2026 the company raised $450 million in a mix of equity and debt.
A buy-and-build strategy across the indie stack
DistroKid is the latest addition to a busy run of deals. Since 2025, Create has bought !K7 Music, Monstercat and Cr2, along with the deadmau5 and Mau5trap catalogues. It also committed roughly $300 million to Nettwerk Music Group. In addition, Create runs the distributor Label Engine and the marketing agency Flighthouse.
This stake gives Create exposure to the very start of the artist pipeline. DistroKid is said to deliver 30 to 40 percent of all new music released worldwide. Create’s labels and catalogues sit further along that pipeline, so the company now has a financial interest in both the volume tier and the curated tier of independent music.
The risk on the books
Create is buying in at a difficult moment. In September, Universal Music Group filed a federal lawsuit against DistroKid in Delaware, alleging deceptive trade practices and copyright infringement. UMG accuses the distributor of channelling undisclosed AI-generated tracks onto streaming services. The major has stressed that its case is not about AI music that is clearly labelled as such.
For investors, the outcome could shape how much legal responsibility open-upload distributors carry for what they deliver. That question goes to the heart of the DIY model’s economics.
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