Virgin Music Group has announced a definitive agreement to acquire Downtown Music Holdings for $775 million, with the deal expected to close in mid-2025. This strategic acquisition will significantly expand Universal Music Group's presence in the independent music sector.

The merger will combine two leading providers of services and technology for independent labels, publishers, and music IP owners. Downtown, founded in 2007, currently manages over 50 million music assets and serves more than 5,000 business clients and 4 million creators across 145 countries.

Key aspects of the acquisition include:

• Integration of Downtown's portfolio including CD Baby, Soundrop, Curve, FUGA, Songtrust, Found.ee, and Sheer Publishing Africa
• Expanded global distribution and marketing capabilities
• Enhanced rights management and royalty collection services
• Strengthened support for independent artists and labels

JT Myers, Co-CEO of Virgin Music Group, praised Downtown's founders Justin Kalifowitz, Andrew Bergman, and Pieter Van Rijn for building "one of the most diversified and respected operations in the world." The acquisition aims to provide independent entrepreneurs, artists, and creators with an expanded portfolio of services.

The deal comes during a period of significant growth in the independent music sector. Both companies will operate independently until the deal closes, pending regulatory approvals. Goldman Sachs and Skadden, Arps, Slate, Meagher & Flom advised Downtown Music, while Kirkland & Ellis, PwC, and Freshfields advised Virgin Music Group.

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