CVC Capital Takes Majority Stake in DistroKid

DistroKid’s Phil Bauer

Indie distribution giant DistroKid is getting a new financial backer. The company announced on Monday that global private markets firm CVC Capital Partners has signed an agreement to acquire a majority stake in the distributor. Longtime investor Insight Partners will retain a significant minority interest.

Financial terms of the deal, which is expected to close in Q3 pending customary approvals, were not disclosed.

The transaction leaves DistroKid's leadership intact, President Phil Bauer continuing to oversee the company with its current executive team.

Founded in 2013, DistroKid has grown into one of the biggest players in independent music distribution; according to the company, it handles roughly 40% of all new music released worldwide and serves more than 4 million artists. Beyond digital distribution, DistroKid has expanded into video delivery, direct-to-fan tools, instant mastering, merchandising, marketing services and metadata management.

"We've been incredibly impressed by what Phil and the entire DistroKid team have built," said CVC Partner Sebastian Künne. "DistroKid earned the trust of millions of artists by staying focused on what they need most. We look forward to partnering with Phil and his team, drawing on our experience across music, entertainment and consumer subscription businesses, to help DistroKid support the next generation of artists around the world."

Insight Partners Managing Director Deven Parekh added, "DistroKid has transformed how independent artists share their music with the world. We're proud of our partnership with Phil and the DistroKid team and are excited to continue supporting the company alongside CVC."

Goldman Sachs and The Raine Group served as financial advisors to DistroKid on the transaction. HITS’ advice to “just put it all on red” was, thankfully, not heeded.