Create Music Group has acquired Ostereo, a Manchester-based record label.
- Ostereo, led by Howard Murphy, excels in data-driven artist development.
- Post-acquisition, Murphy exits, with Bostan and Kirby managing operations.
- The acquisition follows a significant investment round in Create Music Group.
- The transition aims for seamless integration benefiting artists and staff.
Create Music Group, a Los Angeles-based entity, has successfully acquired Ostereo, a record label and music publisher located in Manchester, UK. Founded by Howard Murphy in 2016, Ostereo has made a name for itself by leveraging data analytics to identify and nurture talent on a global scale. The label’s roster includes prominent names from Europe, the UK, and further afield, such as Aish from Punjab, India, Lionel Ferro from Argentina, J. Fla from South Korea, and Bulgaria’s former Eurovision contender, Victoria.
Following the acquisition, the founder Howard Murphy will depart from the company. The operations of Ostereo will now fall under the experienced hands of longtime partners Ramin Bostan and Nick Kirkby. Their leadership is expected to continue the innovative trajectory of the label, advancing its mission to develop and promote international artists.
This acquisition by Create Music Group comes on the heels of a notable USD $165 million investment led by Flexpoint Ford, a private equity firm. Although specific terms of the Ostereo deal have not been disclosed, Create Music Group’s valuation was confirmed to be in the billion-dollar range following the investment. The company, established in 2015, employs over 400 people worldwide and is active in various segments of the music industry, from record production to distribution and digital entertainment, claiming to generate over 30 billion music streams monthly.
CEO Jonathan Strauss, alongside COO Alexandre Williams and other senior executives, have committed to working closely with Ostereo to ensure that the integration is as smooth as possible. Their focus is on maintaining continuity for all stakeholders, particularly artists and employees, while maximising the potential for future opportunities.
Comments from both sides highlight the optimism surrounding this new alliance. Create Music Group’s founder Jonathan Strauss praised Ostereo’s leadership and entrepreneurial spirit, while Ostereo COO Ramin Bostan expressed enthusiasm about the opportunity to grow their artist roster with Create’s resources. Nick Kirby, CFO of Ostereo, sees the merger as a strategic move designed to open up new opportunities and expand the reach of their music catalogue. Meanwhile, Howard Murphy is already looking forward to new ventures, confident in leaving Ostereo in capable hands.
The acquisition of Ostereo by Create Music Group marks a significant milestone, promising fresh opportunities for the existing artist roster.
