Virgin Music Group, a division of Universal Music Group, has announced a definitive agreement to acquire Downtown Music Holdings for $775 million. The deal is expected to close in mid-2025, marking a significant expansion of UMG's presence in the independent music sector.

The acquisition combines two major providers of services and technology for independent labels, publishers, and music IP owners. Downtown, founded in 2007, 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 deal:

• Downtown's portfolio includes CD Baby, Soundrop, Curve, FUGA, Songtrust, Found.ee, and Sheer Publishing Africa
• The combined company will offer expanded services in distribution, marketing, rights management, and royalty collection
• Both companies will operate independently until the deal closes, pending regulatory approvals

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 enhanced support for independent artists and labels globally.

The merger comes amid significant growth in the independent music sector, which has been gaining market share from major label releases. Industry experts expect Virgin to maintain key Downtown sub-divisions like CD Baby and FUGA, given their strong brand recognition and established market positions.

Goldman Sachs and Skadden, Arps, Slate, Meagher & Flom advised Downtown Music on the transaction, while Kirkland & Ellis, PwC, and Freshfields advised Virgin Music Group.

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