(CelebrityAccess) — Universal’s Virgin Music Group announced a deal to acquire the independent music publisher and label services company Downtown Music Holdings LLC in a cash deal worth $775 million.
The deal, which is still subject to regulatory approvals, is expected to close in the second half of 2025, according to UMG.
“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 enables us to expand on the Downtown legacy and offer the independent music community a dynamic and innovative global infrastructure both in terms of service offering and territorial 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.”
“On behalf of Andrew, Pieter and myself, it is very exciting for Downtown to be joining forces with Virgin Music,” said Justin Kalifowitz, Founder, Downtown Music Holdings. “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.”
“It’s an exciting time for Virgin as we continue to build a next-generation music company for independent artists and labels,” said Nat Pastor, Co-CEO of Virgin Music Group. “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.”
Launched as a music publisher in 2007, Downtown has expanded its offerings to provide label services, distribution, and royalty services, alongside its business. The company’s portfolio includes FUGA, Downtown Artist & Label Services, Curve Royalties, CD Baby, Downtown Music Publishing and Songtrust.
Downtown’s client and catalog list includes material from Peso Pluma & Double P Records, Wu-Tang Clan, George Gershwin, and The 1975, among others.
Following the acquisition, Virgin Music Group and Downtown will offer an expanded range of services to Downtown’s clients, including digital & physical distribution; release marketing; business intelligence; neighbouring rights; synchronization; royalties and rights management.
Downtown Music was advised in the transaction by Goldman Sachs & Co. LLC and Skadden, Arps, Slate, Meagher & Flom LLP. Virgin Music Group was advised by Kirkland & Ellis LLP, PwC and Freshfields.
