Ostereo acquired by Create Music Group

Howard Murphy, founder of Manchester-based record label and music publisher Ostereo, has expressed his excitement and pride at the company’s sale to Create Music Group.

Since being started by Howard in 2016, Ostereo has launched the careers of numerous artists and accumulated billions of streams around the world.

Among the artists it has worked with is Joel Corry, who released several tracks on the Ostereo label before going on to have a string of UK top-10 hits including ‘Sorry’, ‘Lonely’ and No.1 chart-topper ‘Head & Heart’.

In a deal advised upon by Tom Eatough, KBS Corporate Director, Ostereo has been sold to Los Angeles-based Create Music Group, which in July 2024 secured a $165million minority investment round led by private equity firm Flexpoint Ford. The investment round valued Create at $1billion.

Founded in 2015 by Jonathan Strauss and Alexandre Williams, Create has more than 400 employees worldwide and operates as a record label, distribution company and entertainment network that generates over 30 billion music streams each month.

“I’m beyond excited to announce that Ostereo has been acquired by the mighty Create Music Group,” said Howard Murphy. “What a journey it’s been!

“When I founded Ostereo eight years ago, it all started with a simple vision: to create sustainable careers for music talent digitally. Back then, there was no TikTok and remuneration from places like Instagram or Snapchat didn’t exist – this certainly created its challenges.

“Fast forward to today, I’m incredibly proud of everything we’ve achieved, from launching hundreds of artists’ careers to seeing our music chart globally racking up billions (and billions!) of streams right across the world.”

Following the sale, Howard will exit Ostereo while his long-time partners Ramin Bostan and Nick Kirby oversee day-to-day operations.

Create announced that its executive team, led by CEO Jonathan Strauss, COO Alexandre Williams, and Senior Vice-President of Global Corporate Development and M&A Eric Nguyen, will work closely with Ostereo to ensure a “seamless integration, prioritising continuity for artists, partners and staff”.

Howard Murphy added: “As I pass the torch to Ramin, Nick, Jonathan and Eric, I’m confident Ostereo’s future is in great hands. With their leadership, I know the incredible team and artists will continue to thrive, building on the foundation we’ve laid and realising even greater success.

“A heartfelt thank you to every staff member and artist who has been part of this journey. I’m so grateful for all the collaborations, creativity and hard work that has made this possible.

“It’s now time to take a break, spend time with family and friends, then, when the time is right, begin my next adventure in music.”

Jonathan Strauss commented: “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.

“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.”

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 staff as we aim to introduce our catalogue to new audiences and expand our network.

“It’s a partnership designed for growth.”