Acquisition Announcement
Virgin Music Group, the global independent music division of Universal Music Group, today announced that it has entered into a definitive agreement to acquire Downtown Music Holdings LLC (Downtown) for a cash consideration of US$775 million (approximately €737 million).
The transaction, subject to regulatory approval, is expected to close in the second half of 2025.
“Justin Kalifowitz, Andrew Bergman and Peter Van Rijn have built Downtown Music into one of the most diversified and respected businesses in the world,” said JT Myers, co-CEO of Virgin Music Group.
“This combination allows us to expand Downtown’s legacy and offer the independent music community a dynamic and innovative global infrastructure in both service offering and footprint, and we look forward to working with the Downtown team to serve independent entrepreneurs, artists and creators with an even broader portfolio of services.”
About Downtown Music
Downtown is a pure play company providing services in music recording, publishing and other areas. The company has not owned the copyright since it sold the portfolio to Concord for about $400 million three and a half years ago.
“On behalf of Andrew, Peter and I, we are thrilled that Downtown is joining forces with Virgin Music,” said Justin Kalifowitz, founder of Downtown Music Holdings.
“This is a huge recognition of the importance and vitality of independent music and the value our company brings to its customers every day. Downtown was founded with the belief that artists and entrepreneurs everywhere, at every stage, are entitled to the same tools and opportunities to succeed. We have no doubt that the breadth and high level of service Downtown provides to its customers will be enhanced by working with Nat, JT and the entire Virgin Music team.”
“This is an exciting time for Virgin as we continue to build the next generation of music company for independent artists and labels,” said Nat Pastor, co-CEO of Virgin Music Group. “We’re not just making an acquisition; it is an investment in the global independent music ecosystem and a commitment to developing current and future creators and entrepreneurs with the world-class support, services, and opportunities they need at every stage of their careers.”
Service Offerings and Global Reach
As one of the leading service providers to the global music industry, Downtown offers technology and services that support creators and businesses in music creation, distribution, publishing, marketing, royalty collection, financing, accounting, and payment services.
Originally founded as a music publishing company in 2007, Downtown today has more than 20 offices on six continents.
The company has core divisions in artist and label services, distribution, royalties and financial services, and music publishing.
Its portfolio of businesses includes FUGA, Downtown Artist & Label Services, Curve Royalties, CD Baby, Downtown Music Publishing, and Songtrust.
Collectively, Downtown serves more than 5,000 business clients and more than four million creators in 145 countries. Downtown customers were recently recognized with nearly 150 nominations for the upcoming 2025 Grammy Awards.
Virgin Music Group and Downtown Music will continue to operate independently during the normal regulatory approval period, and the business combination will occur upon closing of the transaction.
Goldman Sachs & Co. advised on the Downtown Music transaction. LLC and Skadden, Arps, Slate, Meagher & Flom LLP. Virgin Music Group was advised by Kirkland & Ellis LLP, PwC and Freshfields.
Universal’s Virgin Music Group to buy Downtown Music for $775 million
