We learn from a variety of second-hand sources that DistroKid, an open-to-anyone digital music distribution service, is exploring a $2B sale. Prospective suitors are not identified in our sources, but the company is reportedly in “active discussions” with potential buyers, so this appears to be exploratory. Reports also name Goldman Sachs and The Raine Group as financial advisors and representatives.
The $2B reported asking cost compares to a $1.3B valuation obtained in 2021 after an investment round at that time. While there is no public information filing which might document the company’s business specifics, the company claims to facilitate the handling of up to 40% of all new music releases around the world, and to serve over two million artists.
DistroKid has partnered directly with Spotify (RAIN HERE -) and TikTok (RAIN HERE).
