Los Angeles-based Create Music Group has acquired Manchester, UK-based record label and music publisher Ostereo.
Create says that Ostereo, founded in 2016 by Howard Murphy (pictured), has “successfully used data analytics” to identify and develop international artists from Europe and the UK, to Indonesia and The Philippines, via the ubiquitous Korea, and beyond. The company’s roster includes or has included Aish (Punjab, India), Lionel Ferro (Argentina), J. Fla (South Korea), and former Bulgarian Eurovision entrant Victoria.
As part of the deal, Murphy will exit the company, while 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. Although details of the deal, like the latest deal, were not disclosed, it represented an acquisition of just under 20% of Create’s equity, with a spokesman confirming to Music Business Week a the time that the deal valued Create at $1bn.
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 30bn music streams each month on DSPs.
Create says 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 existing subsidiaries include independent music distribution platform Label Engine, and Flighthouse, a Gen Z-focused digital entertainment brand 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,” said Create founder 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.”
Ostereo COO Bostan added: “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.”
Nick Kirby, CFO of Ostereo said: “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.”
Ostereo founder Murphy, meanwhile, said he was already looking forward to his next project after exiting Ostereo as part of the deal: “Over the last decade we have built Ostereo into a home to incubate and develop exciting new artists across multiple genres,” said the Blackpool native. “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.”
