Virgin Music Group to Acquire Downtown Music Holdings in $775M Deal Set for 2025
Virgin Music Group, a Universal Music Group division, has reached a $775 million agreement to acquire Downtown Music Holdings, with the deal expected to close in mid-2025. This acquisition represents a significant expansion of UMG's presence in the independent music sector.
Downtown Music Holdings logo
The merger will combine two major providers of services and technology for independent labels, publishers, and music IP owners. The resulting company will offer comprehensive services including distribution, marketing, rights management, and royalty collection.
Downtown Music Holdings, established in 2007, has built an impressive portfolio including:
- CD Baby
- Soundrop
- Curve
- FUGA
- Songtrust
- Found.ee
- Sheer Publishing Africa
- Various in-house services divisions
Currently, Downtown manages over 50 million music assets globally, serving more than 5,000 business clients and 4 million creators across 145 countries.
JT Myers, Virgin Music Group's Co-CEO, 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 enhance services for the independent music community through expanded global infrastructure and service offerings.
The deal reflects the growing importance of the independent music sector, which has been gaining market share from major label releases. Industry observers expect Virgin to maintain key Downtown sub-divisions, particularly CD Baby and FUGA, given their strong brand recognition and market position.
Both companies will operate independently until the deal closes, subject to regulatory approvals. Goldman Sachs and Skadden, Arps, Slate, Meagher & Flom advised Downtown Music, while Kirkland & Ellis, PwC, and Freshfields represented Virgin Music Group.
Billie Eilish singing into microphone