Virgin Music Group To Acquire Downtown Music
Virgin Music Group has entered into a definitive agreement to acquire Downtown Music Holdings for $775 million. The acquisition, which is subject to regulatory approvals, is expected to close in the second half of 2025.
As one of the leading service providers to the global music industry, Downtown Music’s technology and service offerings support creators and businesses in music creation, distribution, publishing, marketing, royalty collection, financing, accounting and payment services.
Virgin Music Group and Downtown Music will offer a broadened and enhanced suite of services to clients, including digital and physical distribution, release marketing, business intelligence, neighboring rights, synchronization, royalties and rights management. 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.
“Justin Kalifowitz, Andrew Bergman and Pieter Van Rijn have built Downtown Music into one of the most diversified and respected operations in the world,” says JT Myers, Co-CEO, Virgin Music Group. “This 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.”
“On behalf of Andrew, Pieter and myself, it is very exciting for Downtown to be joining forces with Virgin Music,” shares Kalifowitz, Founder, Downtown Music Holdings. “This 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.”
“It’s an exciting time for Virgin as we continue to build a next-generation music company for independent artists and labels,” adds Nat Pastor, Co-CEO, Virgin Music Group. “We 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.”
Initially established as a music publishing company in 2007, Downtown now has more than 20 offices across six continents, the company has core divisions across Artist & Label Services, Distribution, Royalties & Financial Services and Music Publishing. Its portfolio of businesses includes FUGA, Downtown Artist & Label Services, Curve Royalties, CD Baby, Downtown Music Publishing and Songtrust. It collectively serves over 5,000 business clients and more than four million creators in 145 countries.
