Create Music Group, a billion-dollar company based in LA, has acquired Manchester’s Ostereo, signaling a significant expansion in the music industry.
- Ostereo has been known for leveraging data analytics to cultivate talents across Europe, the UK, and Asia, featuring artists from diverse countries.
- Founder Howard Murphy will exit Ostereo, while experienced partners Ramin Bostan and Nick Kirby will continue its operations.
- This acquisition follows a recent $165 million investment in Create Music Group, emphasizing its growing influence.
- The merger promises to enhance opportunities for Ostereo’s roster by integrating with Create’s extensive network.
Create Music Group, valued at $1 billion, has strategically acquired the Manchester-based label and music publisher, Ostereo. This move marks a significant step in expanding its global footprint in the music industry. The acquisition stands out as it involves Ostereo, a company that has effectively employed data analytics to discover and nurture international artists. Ostereo’s roster includes talents like Aish from India, Lionel Ferro from Argentina, J. Fla from South Korea, and Bulgaria’s Victoria, highlighting its global reach.
The transaction will see the departure of Ostereo’s founder, Howard Murphy. However, the company’s continuity is ensured with Ramin Bostan and Nick Kirby, both seasoned partners, taking the helm. Their expertise promises stability and growth as they oversee daily operations within Ostereo under the broader umbrella of Create Music Group.
This acquisition comes on the heels of a substantial $165 million minority investment round secured by Create Music Group, led by private equity firm Flexpoint Ford. This injection of capital, which represented nearly 20% of Create’s equity, underscores its strong market positioning and ambitious growth trajectory.
Create Music Group has established itself as a formidable entity in the music industry since its inception in 2015. Operating across various functions such as a record label, distribution company, and entertainment network, it boasts over 400 employees globally, delivering more than 30 billion music streams monthly.
The leadership at Create, including CEO Jonathan Strauss, COO Alexandre Williams, and SVP Eric Nguyen, will work closely with Ostereo’s management to ensure smooth integration. This merger focuses on providing continuity for artists, partners, and staff, thus maximizing new opportunities through shared expertise and resources.
Howard Murphy has expressed a confident outlook for Ostereo’s future with Create, while already planning his next venture. Ostereo’s COO Ramin Bostan and CFO Nick Kirby are enthusiastic about the prospects, seeing this as a chance to expand their network and reach new audiences. This alliance is designed for growth, offering a robust platform for artists to thrive in the competitive music landscape.
The acquisition of Ostereo by Create Music Group signifies a forward-looking strategy aimed at harnessing data-driven artist development and expanding global influence.
