Manchester music business Ostero sold to major US group
A Manchester music publisher and record label has been sold by its founder to Create Music Group, a Los Angeles-based group, which in July 2024 secured a $165million minority investment round led by private equity firm Flexpoint Ford.
Founded in 2016 by Blackpool-born Howard Murphy, Ostereo uses data analytics to identify and develop artists from various territories around the world, including Europe, UK, Korea, India, Indonesia and the Philippines.
As part of the deal, Murphy will exit the business while longtime partners Nick Kirkby and Ramin Bostan will oversee day-to-day operations at MediaCity-based Ostereo, which will trade as part of acquisitive and ambitious Create, which is valued at $1billion.
The financial terms of the acquisition were not disclosed.
“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,” said Create Music Group founder and CEO, Jonathan Strauss. “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.”
Joel Corry, pic supplied by Ostereo
Ostereo has launched the careers of numerous artists and accumulated billions of streams around the world including 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 2023 Ostereo closed its management arm as part of a restructure designed to place more investment into its artist projects signed to its record label.
Murphy said he was “beyond excited” to sell Ostereo. “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 of streams right across the world.”
Murphy, who also writes a regular column for iconic music publication Rolling Stone, 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.”
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.”
The deal was advised upon by Tom Eatough, KBS Corporate Director.
