Virgin Music Group Announces Acquisition Of Downtown Music

Virgin Music Group, the global independent music division of Universal Music Group and a leading partner to independent music entrepreneurs, has announced a definitive agreement to acquire Downtown Music Holdings LLC (Downtown) for a cash consideration of $775 million (approximately €737 million). The transaction, which is subject to regulatory approvals, is expected to close in the second half of 2025. This strategic acquisition will unite two major providers of client services and music technology, further enhancing their offerings for the independent music community.

"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. "This combination allows us to build upon Downtown’s legacy, expanding the global infrastructure and service portfolio available to the independent music community. We’re excited to partner with the Downtown team to serve artists, entrepreneurs, and creators with even greater innovation."

Justin Kalifowitz, Founder of Downtown Music Holdings, expressed his enthusiasm: "This is a tremendous recognition of the importance of independent music and the value our company provides to its clients daily. Downtown was founded on the belief that artists and entrepreneurs, at every stage, deserve equal tools and opportunities to succeed. Together with Virgin Music, we will strengthen our ability to deliver world-class support to our clients."

Nat Pastor, Co-CEO of Virgin Music Group, added: "We’re not just making an acquisition; this is an investment in the global independent music ecosystem. Our commitment remains to empower creators and entrepreneurs with best-in-class services and capabilities at any phase of their careers."

Founded in 2007 as a music publishing company, Downtown Music Holdings has grown into a leading global service provider for artists, songwriters, and businesses across music creation, distribution, publishing, marketing, royalty management, and financing. With over 20 offices spanning six continents, Downtown serves over 5,000 business clients and more than four million creators across 145 countries, managing a portfolio that includes CD Baby, FUGA, Curve Royalties, Downtown Artist & Label Services, Songtrust, and Downtown Music Publishing.

The acquisition will enhance the combined companies’ services, offering expanded solutions like digital and physical distribution, release marketing, synchronization, neighbouring rights, business intelligence, royalties, and rights management.

Virgin Music Group and Downtown Music will continue to operate independently until regulatory approval is secured, with full integration expected following the deal's closure.