. REUTERS/Dado Ruvic/Illustration
Universal Music Group announced plans to acquire Downtown Music Holdings through its Virgin Music Group division in a $775 million cash deal, marking another significant shift in the independent music sector.
Downtown Music, known for its comprehensive services in distribution, publishing, and artist development, will join Universal’s portfolio pending regulatory approval, with the deal expected to close in late 2025.
The acquisition emerged following reports in July that the estate of Downtown investor Douglas Myers was seeking an exit. Downtown has built its reputation through strategic acquisitions, including digital distributor FUGA, royalty management platform Curve Royalties, and music service provider CD Baby.
Both companies will operate independently during the regulatory review period. The deal adds to Universal’s recent expansion, following its acquisition of PIAS and majority stake in Afrobeats label Mavin Global earlier this year.
Virgin Music Group co-CEO JT Myers emphasized the deal’s potential to enhance services for independent artists and labels.
Downtown founder Justin Kalifowitz described the acquisition as “recognition of the importance and vitality of independent music,” expressing confidence in the company’s future under Virgin Music Group.
The announcement follows similar consolidation moves in recent years, including Sony Music’s purchase of AWAL and Warner Music Group’s acquisition of 300 Entertainment. Industry organizations representing independent labels are expected to voice concerns about market concentration as the deal moves through regulatory review.
The acquisition requires approval from competition authorities in multiple territories before completion.
