Create Music Group Confirms Minority Stake in DistroKid
Create Music Group has confirmed that it holds a minority stake in DistroKid, the service that helps artists send their songs to streaming platforms. Chief executive and co-founder Jonathan Strauss confirmed the investment to Music Business Worldwide on 28 October 2026.
The investment was made earlier this year. It was executed alongside a larger deal in which the private equity firm CVC Capital Partners bought a majority stake in DistroKid. That deal closed in the third quarter of 2026. A majority stake means more than half of a company. A minority stake is less than half.
DistroKid's longtime backer Insight Partners kept a significant minority stake after CVC's purchase, according to a July report from Music Business Worldwide. So DistroKid now has several sizeable owners, each with a different share.
Create Music Group is a music company in its own right. In March 2026 it completed a $450 million fundraise at a $2.2 billion valuation, the figure placed on the whole business, according to a company press release. The founders still hold the majority of the company. It is also supported by private capital backers Flexpoint Ford and Ares.
The ownership news arrives while DistroKid is involved in a legal dispute. On 12 October 2026, Billboard reported that DistroKid removed songs in response to a lawsuit from Universal Music Group. The lawsuit claims DistroKid siphoned money from the royalty pool, the shared pot that streaming services divide among rights holders, by flooding Spotify and other streamers with content.
These are claims in a lawsuit, not findings by a court. The ownership changes and the legal case are separate matters, and neither has been decided.
For artists who rely on DistroKid to get their music onto streaming services, the practical question is what happens next to the service itself. The companies involved have not said how the new ownership will change the way the service operates. Anyone watching this story should look for updates from the companies and the court record as they appear.
