Virgin Music Group, a division of Universal Music Group, has announced its acquisition of Downtown Music Holdings for $775 million, with the deal expected to close in mid-2025. This strategic move significantly expands UMG's presence in the independent music sector.

The merger combines two major providers of services and technology for independent labels, publishers, and music IP owners. The consolidated 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, and Sheer Publishing Africa. The company currently manages over 50 million music assets and serves more than 5,000 business clients and 4 million creators across 145 countries.

Key benefits of the acquisition include:

• Expanded global footprint for Virgin Music Group
• Enhanced services for independent artists and labels
• Broader distribution network
• Improved rights management capabilities
• Strengthened position in the growing independent music sector

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."

Both companies will operate independently until the deal closes, pending regulatory approvals. Goldman Sachs and Skadden, Arps, Slate, Meagher & Flom are advising Downtown Music, while Kirkland & Ellis, PwC, and Freshfields are advising Virgin Music Group.

This acquisition represents a significant shift in the music industry landscape, particularly in the independent sector, and demonstrates Universal Music Group's commitment to expanding its influence in the independent music market.

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