Create Music Group (CMG) has announced another big-money deal – this time with Vancouver-headquartered indie Nettwerk Music Group.
Nettwerk has today (February 6) confirmed that it has entered into a definitive agreement to complete a management buyout from its existing investors.
As part of the proposed arrangement, CMG’s Create Capital will invest over USD $300 million into Nettwerk on closing, and says it will also provide access to “substantial follow-on capital and support services thereafter”.
In a press release, the parties stated that the deal – expected to close later this month – will allow the Nettwerk management team to increase its ownership stake, enabling the Canadian firm to retain its “identity and independence”.
MBW understands the deal will see Create taking a controlling position in Nettwerk’s music IP portfolio, while Nettwerk itself remains independently owned and operated.
Los Angeles-hedquartered Create will move Nettwerk’s catalog into its system, which CMG believes it can use to increase the value of the IP.
Following the deal, Nettwerk’s leadership team will continue to manage its day-to-day operations, signings and artist development efforts, with support from Create’s platform.
In 2023, Nettwerk announced a funding round led by private equity firm Flexpoint Ford, alongside existing investors Beedie Capital and Vistara Growth.
Though it’s currently unclear which of these investors may have exited via the new management buyout, they have an interesting link to Create: Flexpoint Ford led a $165 million investment round into Create in 2024, which valued CMG at over $1 billion.
Since that raise, Create Music Group has been on an acquisition tear. Amongst other deals, it’s acquired Germany’s !K7 while striking catalog buyouts with the likes of Pack Records and Deadmau5.
“Partnering with Create allows us to continue to build on our foundation, grow our capabilities, and provide even more value to the artists we represent.”
TERRY MCBRIDE, NETTWERK MUSIC GROUP
Discussing the new Create deal and management buyout, Terry McBride, co-founder and CEO of Nettwerk, said: “We’re excited about this next chapter in Nettwerk’s journey.
“Partnering with Create allows us to continue to build on our foundation, grow our capabilities, and provide even more value to the artists we represent — while staying true to our roots as an artist-focused, independent Canadian label.”
Co-founded in 1984 by McBride and his longtime business partner Mark Jowett, Nettwerk operates across recordings, publishing, and management.
At various points in its history, its roster of artists has included Coldplay (US), Sarah McLachlan, Dido, and Barenaked Ladies, while its current acts include Paris Paloma, Passenger, Leisure, SYML, and Mon Rovîa, among others.
In 2016, Nettwerk sold its 30-year-old publishing catalog to a fund managed by Kobalt. It has subsequently continued to develop a recordings and publishing catalog.
“Terry and his team at Nettwerk have built one of the most enduring and influential independent music companies in the modern era.”
Jonathan Strauss, CREATE MUSIC GROUP
“Terry and his team at Nettwerk have built one of the most enduring and influential independent music companies in the modern era,” said CMG CEO and co-founder Jonathan Strauss.
“We are excited to put all of the resources at our disposal behind Terry and his management team to fuel Nettwerk’s continued global growth.”
Create’s other standout deals in the past two years have included the formation of JVs with EZMNY Records and Star Trak Entertainment.
Additionally, Create recently backed a $500 million investment fund launched by Circuit Group.
Earlier this week, it was confirmed that CMG is collaborating with Romel Murphy – manager of AI musician Xania Monet (real name Telisha Jones) – to launch a “multi-million dollar” joint venture label, dai + drm.Music Business Worldwide
