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 will combine two leading providers of services and technology for independent labels, publishers, and music IP owners. The merged entity will offer comprehensive services including distribution, marketing, rights management, and royalty collection.

Downtown Music Holdings, founded in 2007, has built an impressive portfolio including:

• CD Baby
• Soundrop
• Curve
• FUGA
• Songtrust
• Found.ee
• Sheer Publishing Africa

Currently, Downtown manages over 50 million music assets and serves more than 5,000 business clients and 4 million creators across 145 countries.

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 merger aims to provide enhanced services and broader territorial coverage for independent music entrepreneurs.

Justin Kalifowitz, Downtown's founder, highlighted the deal as recognition of independent music's importance and vitality. The acquisition comes during a period of significant growth in the independent music sector, which has been gaining market share from major label releases.

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 advised Virgin Music Group.

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