Los Angeles-based Create Music Group has acquired Manchester, UK-based record label and music publisher Ostereo.
Founded in 2016 by Howard Murphy, Create says that Ostereo has “successfully used data analytics” to identify and develop artists from various territories around the world, including Europe, UK, Korea, India, Indonesia, The Philippines and others. The company has worked with artists including Joel Corry, J.Fla and Shania Yan.
As part of the deal, Murphy will exit the company, and his longtime partners, Ramin Bostan and Nick Kirkby, will oversee day-to-day operations at Ostereo.
The acquisition arrives four months after Create Music Group secured a USD $165 million minority investment round led by private equity firm Flexpoint Ford. As reported by MBW in June, music industry veteran Charles Goldstuck also joined the funding round, which is understood to have seen the Flexpoint-led group acquire close to a fifth of Create’s equity.
A spokesperson confirmed at the time that the investment round valued Create at $1 billion.
Established in 2015, Create Music Group has more than 400 employees worldwide. It operates as a record label, distribution company, and entertainment network that generates over 30 billion music streams each month on DSPs.
Create Music Group says that its executive team, led by CEO Jonathan Strauss, COO and co-founder Alexandre Williams and Senior Vice President of Global Corporate Development and M&A Eric Nguyen, will work closely with Ostereo’s team to ensure a “seamless integration, prioritizing continuity for artists, partners, and staff”.
In addition to Ostereo, Create’s subsidiaries include independent music distribution platform Label Engine, and Flighthouse, a digital entertainment brand focused on Gen Z, which has more than 300 million followers across social media.
“Howard and his team have built Ostereo into a highly successful music venture and are the exact type of leaders and entrepreneurs that thrive under our ecosystem.”
Jonathan Strauss, Create Music Group
“Howard and his team have built Ostereo into a highly successful music venture and are the exact type of leaders and entrepreneurs that thrive under our ecosystem,” said Create Music Group Founder and CEO, Jonathan Strauss.
“We are excited to welcome Ramin, Nick and the entire Ostereo team to Create and look forward to working alongside them to build even greater opportunities for the label and its incredible artists.”
“Becoming a part of the Create family of companies gives me the confidence to step away to focus on my next endeavor.”
Howard Murphy
Murphy added: “Over the last decade we have built Ostereo into a home to incubate and develop exciting new artists across multiple genres.
“Becoming a part of the Create family of companies gives me the confidence to step away to focus on my next endeavor. With Ramin and Nick handling things together with the global experts at Create, I know our artists are going to thrive.”
“This acquisition marks the start of a new, exciting chapter for Ostereo.”
Ramin Bostan, Ostereo
Ramin Bostan, COO of Ostereo said: “This acquisition marks the start of a new, exciting chapter for Ostereo; we can’t wait to develop our global roster of artists with the expertise and infrastructure at Create, one of the most inspiring music companies in the world.”
“While it’s the end of an era, this move is set to present new opportunities for our artists and our staff as we aim to introduce our catalogue to new audiences and expand our network.”
Nick Kirby, Ostereo
Nick Kirby, CFO of Ostereo added: “While it’s the end of an era, this move is set to present new opportunities for our artists and our staff as we aim to introduce our catalogue to new audiences and expand our network. It’s a partnership designed for growth.”Music Business Worldwide