Major music industry organizations IMPALA, IMPF, and AIM have voiced strong opposition to Universal Music Group's $775 million acquisition of Downtown Music through Virgin Music Group, citing concerns about market consolidation and competition.

The deal, announced recently and expected to close by mid-2025, follows UMG's recent acquisition of [PIAS] and represents a continuing pattern of major label consolidation in the music industry.

IMPALA's executive chair Helen Smith labeled the acquisition as "another land grab" by UMG, calling for thorough investigations by competition authorities and questioning UMG's ability to further expand its market share.

Key concerns raised by the organizations include:

• Reduction of independent routes to market
• Damage to music industry ecosystem diversity
• Decreased competition and choices for songwriters and publishers
• Impact on independent music publishing growth
• Concerns over FUGA's future as an independent service provider

AIM CEO Gee Davy emphasized that this acquisition, particularly affecting FUGA, threatens the global independent music community and continues a troubling trend of over-consolidation.

The IMPF specifically highlighted concerns about Downtown Music Publishing and Sheer Publishing Africa's transition from independent status, noting potential negative impacts on songwriter and publisher choices.

This development follows other significant industry consolidation attempts, including Warner Music's recent exploration of acquiring Believe and its subsequent strategy to enhance third-party investments.

The organizations collectively stress the importance of maintaining diverse, independent routes to market and balanced negotiating power to ensure fair deals and growth opportunities for artists and independent businesses.

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