{"id":219332,"date":"2024-12-16T16:50:06","date_gmt":"2024-12-16T16:50:06","guid":{"rendered":"https:\/\/www.musicbusinessworldwide.com\/?p=219332"},"modified":"2024-12-16T16:57:23","modified_gmt":"2024-12-16T16:57:23","slug":"universals-music-group-buys-downtown-music-for-775-million","status":"publish","type":"post","link":"https:\/\/www.musicbusinessworldwide.com\/universals-music-group-buys-downtown-music-for-775-million\/","title":{"rendered":"Universal’s Virgin Music Group to buy Downtown Music for $775 million"},"content":{"rendered":"

Virgin Music Group, the global independent music division of Universal Music Group, announced today it has entered into a definitive agreement to acquire Downtown Music Holdings LLC (Downtown) for cash consideration of $775 million (approximately \u20ac737 million).<\/p>\n

The acquisition, which is subject to regulatory approvals, is expected to close in the second half of 2025.<\/p>\n

\u201cJustin Kalifowitz, Andrew Bergman and Pieter Van Rijn have built Downtown Music into one of the most diversified and respected operations in the world,\u201d said JT Myers, Co-CEO, Virgin Music Group.<\/p>\n

\u201cThis combination enables us to expand on the Downtown legacy and offer the independent music community a dynamic and innovative global infrastructure both in terms of service offering and territorial footprint, and we look forward to working with the Downtown team to serve independent entrepreneurs, artists and creators with an even broader portfolio of services.\u201d<\/p>\n

Downtown is a ‘pure’ services company across recorded music, publishing, and other areas. It hasn’t owned copyrights since selling a portfolio<\/a> to Concord for approximately $400 million three-and-a-half years ago.<\/p>\n

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\u201cOn behalf of Andrew, Pieter and myself, it is very exciting for Downtown to be joining forces with Virgin Music,\u201d said Justin Kalifowitz, Founder, Downtown Music Holdings.<\/p>\n

\u201cThis is a tremendous recognition of the importance and vitality of independent music, and the value that our company brings to its clients every day. Downtown was established with the belief that artists and entrepreneurs everywhere and at every stage are entitled to the same tools and opportunities to succeed. We have no doubt that the breadth and high level of service Downtown provides to its clients will be strengthened working with Nat, JT and the whole Virgin Music team.\u201d<\/p>\n

\u201cIt\u2019s an exciting time for Virgin as we continue to build a next-generation music company for independent artists and labels,\u201d said Nat Pastor, Co-CEO of Virgin Music Group. \u201cWe aren’t just making an acquisition; this is an investment into the global independent music ecosystem and a commitment to nurture current and future creators and entrepreneurs with world-class support, services, and capabilities they require at any phase of their careers.\u201d<\/p>\n

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As one of the leading service providers to the global music industry, Downtown’s technology and service offerings support creators and businesses in music creation, distribution, publishing, marketing, royalty collection, financing, accounting, and payment services.<\/p>\n

Initially established as a music publishing company in 2007, Downtown today runs more than 20 offices across six continents.<\/p>\n

The company has core divisions across Artist & Label Services, Distribution, Royalties & Financial Services, and Music Publishing.<\/p>\n

Its portfolio of businesses includes FUGA, Downtown Artist & Label Services, Curve Royalties, CD Baby, Downtown Music Publishing and Songtrust.<\/p>\n

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Downtown collectively serves over 5,000 business clients and more than four million creators in 145 countries. Downtown clients were recently recognized with nearly 150 nominations for the upcoming 2025 GRAMMYs.<\/p>\n

Virgin Music Group and Downtown Music will continue operating independently through a customary regulatory approval period, with the combination of the companies to occur following the deal closure.<\/p>\n

Downtown Music was advised in the transaction by Goldman Sachs & Co. LLC and Skadden, Arps, Slate, Meagher & Flom LLP. Virgin Music Group was advised by Kirkland & Ellis LLP, PwC and Freshfields.<\/p>\n","protected":false},"excerpt":{"rendered":"

Deal expected to close in second half of next year<\/p>\n","protected":false},"author":3,"featured_media":176933,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7],"tags":[],"class_list":["post-219332","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/posts\/219332","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/comments?post=219332"}],"version-history":[{"count":0,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/posts\/219332\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/media\/176933"}],"wp:attachment":[{"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/media?parent=219332"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/categories?post=219332"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.musicbusinessworldwide.com\/wp-json\/wp\/v2\/tags?post=219332"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}