VIRGIN MUSIC GROUP TO ACQUIRE DOWNTOWN MUSIC - UMG
Virgin Music Group to Acquire Downtown Music Combination Will Create Robust Global End-to-End Solution for Independent Music Entrepreneurs Los Angeles, CA – December 16, 2024 – Virgin Music Group, one of the world’s leading partners to independent music entrepreneurs, and the global independent...
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Universal’s Virgin Music Group to Acquire Downtown Music for $775 Million
In a long-rumored move, Virgin Music Group, the independent music division of Universal Music, will acquire Downtown Music Holdings for $775 million
variety.com
UPDATED: In a long-rumored move, Virgin Music Group, the independent music division of Universal Music Group, announced today it has entered into a definitive agreement to acquire Downtown Music Holdings LLC for $775 million (approximately €737 million). The acquisition, which is subject to regulatory approvals, is expected to close in the second half of 2025.
“Justin Kalifowitz, Andrew Bergman and Pieter Van Rijn have built Downtown Music into one of the most diversified and respected operations in the world,” said JT Myers, Co-CEO, Virgin Music Group. His fellow co-CEO Nat Pastor added, “We aren’t just making an acquisition; this is an investment into the global independent music ecosystem and a commitment to nurture current and future creators and entrepreneurs with world-class support, services, and capabilities they require at any phase of their careers.”
Downtown Music Holdings founder Justin Kalifowitz said, “On behalf of Andrew, Pieter and myself, it is very exciting for Downtown to be joining forces with Virgin Music,” saids. “This is a tremendous recognition of the importance and vitality of independent music, and the value that our company brings to its clients every day. Downtown was established with the belief that artists and entrepreneurs everywhere and 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 clients will be strengthened working with Nat, JT and the whole Virgin Music team.”
The move, of course, means that a formerly independent company will now be fully owned by the world’s largest major label, Universal. Gee Davy, CEO of the Association of Independent Music, said in a statement, “The potential sale of Downtown Music – including FUGA, a longstanding favourite with independents – to Universal’s Virgin Music Group is more concerning news for the global independent music community. Following on from the recent PIAS/Integral acquisition, it plays into a continuing trend towards over-consolidation and reduction of independent routes to market. It is vital to uphold a true choice of partners for artists and labels and ensure that negotiating power does not become unbalanced. Only in this way can homegrown artists and businesses access fair deals, investment and growth.”
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