As a seasoned gamer with over two decades of experience navigating the ever-evolving landscape of the music industry, I find the recent $775 million acquisition of Downtown Music Group Holdings by Virgin Music Group to be an exciting development. Having witnessed the rise and fall of numerous labels, publishers, and platforms throughout my gaming career, it’s refreshing to see a deal that not only strengthens the independent music community but also broadens the global infrastructure for artists and creators.
As an enthusiastic music lover, I’m thrilled to share that I, along with millions of others under the Universal Music Group umbrella, have just made a significant move! We’re acquiring Downtown Music Group Holdings for a whopping $775 million, a deal struck by Virgin Music Group – a subsidiary of ours. This exciting development promises to further enrich our shared love for music and its creators!
The acquisition is expected to close in the second half of 2025, pending regulatory approvals.
Originally founded as a music publishing company back in 2007, Downtown Music Group Holdings has expanded significantly and now boasts over 20 offices spread across six continents. Their operations cover various sectors such as artist and label services, distribution, royalty and financial services, and music publishing. Some of their key businesses include FUGA, Downtown Artist & Label Services, Curve Royalties, CD Baby, Downtown Music Publishing, and Songtrust.
JT Myers, Co-CEO of Virgin Music Group, praised Justin Kalifowitz, Andrew Bergman, and Pieter Van Rijn for turning Downtown Music into a globally recognized and respected entity. He added that this merger allows us to expand on Downtown’s legacy, providing the independent music community with a versatile and forward-thinking global structure in terms of services and reach. We are excited to collaborate with the Downtown team to offer a wider range of services to independent entrepreneurs, artists, and creators.
Speaking on behalf of Andrew, Pieter, and myself, Justin Kalifowitz, Founder of Downtown Music Holdings, expressed great excitement about Downtown’s collaboration with Virgin Music. This partnership is a significant acknowledgement of the significance and dynamism of independent music, as well as the daily value our company offers to its clients.
It’s thrilling times for Virgin as we carry on constructing a cutting-edge music company tailored for independent artists and labels,” expressed Nat Pastor, Co-CEO of Virgin Music Group. “We aren’t merely making an acquisition; this is an investment into the global independent music network, a pledge to foster both current and upcoming creators and entrepreneurs with top-notch assistance, services, and capabilities they need at any stage of their careers.
The two companies will continue operating independently through the regulatory approval period.
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.
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2024-12-16 20:24