CVC Capital Partners agreed to acquire a majority stake in DistroKid, the New York company that distributes music for independent artists to streaming services. The investment will be made through the firm's CVC Capital Partners IX fund, and DistroKid confirmed the agreement on Monday, 6 July 2026.
Terms were not disclosed. Music Business Worldwide had reported in January that DistroKid was exploring a sale and that a price of around $2 billion was being discussed at the time. Neither company confirmed a figure. The transaction was expected to close in the third quarter of 2026, subject to customary closing conditions.
Insight Partners, a longtime investor, will keep what the announcement called a significant minority stake. Phil Bauer remains president and will continue to run the company with its existing leadership team.
What DistroKid built
Philip Kaplan founded DistroKid in 2013 to get independent musicians' songs onto streaming and download services. Artists pay a flat subscription fee and keep all of their royalties, a model that sets it apart from distributors that take a percentage of earnings.
The company has since added video distribution, instant mastering, direct-to-fan tools and on-demand and custom merchandise. It bought Bandzoogle, a direct-to-fan company, in 2023, and in 2025 launched Direct, which lets artists sell merchandise straight to fans.
DistroKid says more than 2 million artists use the platform and that it handles between 30% and 40% of new music releases worldwide, according to Music Business Worldwide.
The announcement described DistroKid as a company that has earned the trust of millions of artists. It did not disclose revenue, profit or headcount, and Music Business Worldwide did not report those figures either.
“DistroKid has earned the trust of millions of artists by staying focused on what they need most.”
Why CVC is buying
CVC is a private markets firm with about EUR 209 billion (roughly $245 billion) in assets under management across private equity, secondaries, credit and infrastructure. In music it is best known for its 2024 investment in Superstruct Entertainment, the festival operator it backs alongside KKR, which runs more than 80 festivals in Europe and Australia including Wacken Open Air and Sónar.
Its wider entertainment and sports portfolio has included Stage Entertainment, Formula One and Spain's LaLiga. Sebastian Künne, a partner at CVC, said the firm planned to draw on its experience in music, entertainment and consumer subscription businesses to help DistroKid serve the next generation of artists.
Künne said CVC had been impressed by what Bauer and the DistroKid team had built.
The founder, the backers and the sale process
Insight Partners invested in DistroKid in August 2021 in a deal that valued the company at $1.3 billion. The size of that investment was not disclosed. Deven Parekh, a managing director at Insight, said the firm was proud of its partnership with Bauer and the DistroKid team and would keep supporting the company alongside CVC.
Kaplan moved from chief executive to chairman in January 2024, when Bauer, previously chief operating officer, took over day-to-day leadership as president. The announcement did not say whether Kaplan is selling shares or what role he will hold after closing.
Goldman Sachs and The Raine Group advised DistroKid on the sale, while Morgan Stanley advised CVC.
A busy year for independent distribution
Independent distribution has drawn growing interest from investors as more artists release music without a label. Insight Partners has also been expanding in the sector: in January it bought Berlin-based distributor Zebralution from the German collecting society GEMA, which was leaving digital distribution, Music Business Worldwide reported.
For CVC, the deal adds a subscription business serving millions of creators to an entertainment portfolio that until now has leaned toward live events and sport.
What changes for artists was not spelled out. The announcement did not mention any change to DistroKid's pricing, its flat-fee model or its products, and said only that the existing management team would stay in place under Bauer. The deal still has to clear customary closing conditions before CVC takes control.
