Virgin Music Group to Acquire Downtown Music
Virgin Music Group has announced a definitive agreement to acquire Downtown Music Holdings for $775 million (€737 million), with the deal expected to close in H2 2025. The acquisition combines two leading providers of client services and music technology in the independent music sector.
Downtown Music, established in 2007, serves over 5,000 business clients and more than four million creators across 145 countries through its portfolio including FUGA, CD Baby, Downtown Music Publishing, and Songtrust. The company operates from 20+ offices across six continents, offering services in distribution, publishing, marketing, royalty collection, financing, and accounting.
The merger aims to create a comprehensive global solution for independent music entrepreneurs, enhancing service offerings including digital & physical distribution, release marketing, business intelligence, neighboring rights, synchronization, and rights management.
Virgin Music Group ha annunciato un accordo definitivo per acquisire Downtown Music Holdings per 775 milioni di dollari (€737 milioni), con chiusura prevista nel secondo semestre del 2025. L'acquisizione unisce due fornitori di servizi clientela e tecnologia musicale di punta nel settore della musica indipendente.
Downtown Music, fondata nel 2007, serve oltre 5.000 clienti commerciali e più di quattro milioni di creatori in 145 paesi attraverso il suo portfolio che include FUGA, CD Baby, Downtown Music Publishing e Songtrust. L'azienda opera da oltre 20 uffici distribuiti su sei continenti, offrendo servizi in distribuzione, publishing, marketing, raccolta di diritti, finanziamento e contabilità.
La fusione mira a creare una soluzione globale completa per gli imprenditori della musica indipendente, migliorando l'offerta di servizi che includono distribuzione digitale e fisica, marketing per il lancio, analisi aziendale, diritti connessi, sincronizzazione e gestione dei diritti.
Virgin Music Group ha anunciado un acuerdo definitivo para adquirir Downtown Music Holdings por 775 millones de dólares (€737 millones), con la expectativa de que la transacción se cierre en la segunda mitad de 2025. La adquisición combina dos proveedores líderes de servicios al cliente y tecnología musical en el sector de la música independiente.
Downtown Music, establecida en 2007, atiende a más de 5,000 clientes comerciales y a más de cuatro millones de creadores en 145 países a través de su cartera que incluye FUGA, CD Baby, Downtown Music Publishing y Songtrust. La compañía opera desde más de 20 oficinas en seis continentes, ofreciendo servicios en distribución, publicación, marketing, recaudación de regalías, financiamiento y contabilidad.
La fusión tiene como objetivo crear una solución global integral para los emprendedores de la música independiente, mejorando la oferta de servicios que incluye distribución digital y física, marketing de lanzamientos, inteligencia comercial, derechos conexos, sincronización y gestión de derechos.
버진 뮤직 그룹이 다운타운 뮤직 홀딩스를 7억 7천5백만 달러(약 7억 3천7백만 유로)에 인수하기 위한 최종 계약을 발표했으며, 거래는 2025년 하반기에 마무리될 것으로 예상됩니다. 이번 인수는 독립 음악 분야에서 고객 서비스와 음악 기술을 제공하는 두 개의 선두 업체를 결합합니다.
2007년에 설립된 다운타운 뮤직은 FUGA, CD Baby, Downtown Music Publishing, Songtrust 등 자회사를 통해 145개국에서 5,000명 이상의 비즈니스 고객과 400만 명 이상의 창작자를 응대하고 있습니다. 이 회사는 6개 대륙에 걸쳐 20개 이상의 사무소에서 운영되며, 배급, 출판, 마케팅, 저작권 징수, 자금 조달, 회계 등의 서비스를 제공합니다.
이번 합병은 독립 음악 기업가를 위한 종합적인 글로벌 솔루션을 만들고, 디지털 및 물리적 배급, 출시 마케팅, 비즈니스 인텔리전스, 인접 권리, 동기화 및 권리 관리를 포함한 서비스 향상을 목표로 합니다.
Virgin Music Group a annoncé un accord définitif pour acquérir Downtown Music Holdings pour 775 millions de dollars (737 millions d'euros), avec une clôture prévue au second semestre 2025. Cette acquisition combine deux leaders des services aux clients et de la technologie musicale dans le secteur de la musique indépendante.
Downtown Music, fondé en 2007, sert plus de 5 000 clients commerciaux et plus de quatre millions de créateurs dans 145 pays grâce à son portefeuille comprenant FUGA, CD Baby, Downtown Music Publishing et Songtrust. L'entreprise opère depuis plus de 20 bureaux répartis sur six continents, offrant des services en distribution, publication, marketing, collecte de redevances, financement et comptabilité.
La fusion vise à créer une solution mondiale complète pour les entrepreneurs de la musique indépendante, améliorant l'offre de services incluant distribution numérique et physique, marketing de lancement, intelligence d'affaires, droits voisins, synchronisation et gestion des droits.
Virgin Music Group hat eine endgültige Vereinbarung zur Übernahme von Downtown Music Holdings für 775 Millionen US-Dollar (737 Millionen Euro) angekündigt, wobei der Abschluss im zweiten Halbjahr 2025 erwartet wird. Die Übernahme vereint zwei führende Anbieter von Kundenservices und Musiktechnologie im Bereich der unabhängigen Musik.
Downtown Music, gegründet im Jahr 2007, bedient über 5.000 Geschäftskunden und mehr als vier Millionen Kreatoren in 145 Ländern durch ein Portfolio, das FUGA, CD Baby, Downtown Music Publishing und Songtrust umfasst. Das Unternehmen betreibt mehr als 20 Büros in sechs Kontinenten und bietet Dienstleistungen in den Bereichen Vertrieb, Publishing, Marketing, Lizenzgebühren, Finanzierung und Buchhaltung an.
Die Fusion zielt darauf ab, eine umfassende globale Lösung für unabhängige Musikunternehmer zu schaffen und die Serviceangebote in den Bereichen digitale und physische Distribution, Release-Marketing, Geschäftsanalyse, verwandte Rechte, Synchronisation und Rechteverwaltung zu verbessern.
- Strategic acquisition valued at $775 million strengthens market position
- Combined entity will serve over 5,000 business clients and 4 million creators globally
- Expansion of service portfolio and geographical presence across 145 countries
- Enhanced technological capabilities and service offerings for independent artists
- Significant cash outlay of $775 million for the acquisition
- Extended completion timeline (H2 2025) subject to regulatory approvals
- Integration risks between two large-scale operations
Combination Will Create Robust Global End-to-End Solution for Independent Music Entrepreneurs
"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."
As one of the leading service providers to the global music industry, Downtown's technology and service offerings support creators and businesses in music creation, distribution, publishing, marketing, royalty collection, financing, accounting, and payment services.
Initially established as a music publishing company in 2007, Downtown is dedicated to empowering artists and businesses globally in the fast-evolving digital landscape. Today, with more than 20 offices across six continents, the company has core divisions across Artist & Label Services, Distribution, Royalties & Financial Services, and Music Publishing. Its portfolio of businesses includes FUGA, Downtown Artist & Label Services, Curve Royalties, CD Baby, Downtown Music Publishing and Songtrust.
Downtown works with artists, entrepreneurs, songwriters and rights holders at every stage in their career – from newcomers to hitmakers and icons, while managing the estates of some of the most beloved and influential artists in the history of popular music. Downtown collectively serves over 5,000 business clients and more than four million creators in 145 countries. Downtown clients were recently recognized with nearly 150 nominations for the upcoming 2025 GRAMMYs.
As a partner to the global supply chain of music streaming services, performing rights societies and other rights management organizations, Downtown stands as one of the industry's most respected businesses, delivering outstanding results to its clients. Through its technology and direct relationships, Downtown consistently and effectively advances the commercial goals of the businesses, artists and songwriters it serves.
Virgin Music Group and Downtown will offer a broadened and enhanced suite of services to clients, including digital & physical distribution; release marketing; business intelligence; neighbouring rights; synchronization; royalties and rights management.
Virgin Music Group and Downtown Music will continue operating independently through a customary regulatory approval period, with the combination of the companies to occur following the deal closure.
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.
About Virgin Music Group
Virgin Music Group is one of the world's leading partners to independent music companies and artists and offers global infrastructure and local expertise in every major music market around the world. Virgin Music Group offers compelling, efficient, and highly flexible global solutions with advanced marketing technology for independent record labels, artists and entrepreneurs who want to succeed. www.virginmusic.com
About Downtown Music
Downtown Music is the world's leading music services company. Its global ecosystem supports millions of creators, rights holders and their partners to manage their music as a business and get paid fairly for their work. Across its four core divisions – Publishing, Distribution, Artist & Label Services and Royalties & Financial Services – Downtown collectively serves over 5,000 business clients and reaches over 4 million creators & artists in 145 countries. www.downtownmusic.com
Cautionary Notice
This press release is published by VMG, the global independent music division of Universal Music Group N.V. (collectively, the "Company") and contains inside information within the meaning of article 7(1) of Regulation (EU) No 596/2014 (Market Abuse Regulation).
Forward-Looking Statements
This press release, and any related oral statements, includes statements that constitute forward-looking statements, including statements regarding the proposed acquisition (the "Acquisition") of Downtown by the Company, the expected timetable for completing the Acquisition, expected benefits of the Acquisition and any other statements regarding the Company's future expectations, beliefs, financial condition, results of operations, business, strategy and plans. These and other forward-looking statements may be identified by the use of words such as 'expect', 'estimate', 'project', 'anticipate', 'should', 'intend', 'plan', 'probability', 'risk', 'target', 'goal', 'objective', 'will', 'endeavour', 'optimistic', 'prospects' and similar expressions or variations on such expressions. Although the Company believes that such forward-looking statements are based on reasonable assumptions, they are not guarantees of future performance. Actual results may differ materially from such forward-looking statements as a result of a number of risks and uncertainties, many of which are related to factors that are outside the Company's control, including, but not limited to, the timing to consummate the Acquisition and the risk that the Acquisition may not be completed at all or the occurrence of any event, change, or other circumstances that could give rise to the termination of the purchase agreement, including circumstances requiring a party to pay the other party a termination fee pursuant to the purchase agreement; the risk that the conditions to closing of the Acquisition may not be satisfied or waived; the risk that a governmental or regulatory approval that may be required for the Acquisition is not obtained or is obtained subject to conditions that are not anticipated; potential litigation relating to, or other unexpected costs resulting from, the Acquisition and the other risks that are described in Universal Music Group N.V.'s 2023 Annual Report. The Company can give no assurance that the conditions to the Acquisition will be satisfied, or that it will close within the anticipated time period. Accordingly, the Company cautions readers against placing undue reliance on such forward-looking statements. Such forward-looking statements are made as of the date of this press release. The Company disclaims any intention or obligation to provide, update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.
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SOURCE Virgin Music Group
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