Virgin Music Group to acquire Downtown in $775m deal

The acquisition, pending regulatory approvals, is expected to close in the second half of 2025. It follows Virgin’s launch of operations in Nigeria last year, after its initial foray into Africa in June 2022.

Once completed, it will unite two leading providers of client services and music technology, strengthening their ability to serve the independent music community.

According to a statement, Virgin Music Group and Downtown will continue to operate independently during the regulatory approval period, with the full integration of the companies taking place after the deal closes. Together, they will offer an expanded and enhanced suite of services to clients, including digital and physical distribution, release marketing, business intelligence, neighbouring rights, synchronization, and royalties and rights management.

“Justin Kalifowitz, Andrew Bergman and Pieter Van Rijn have built Downtown Music into one of the most diversified and respected operations in the world,” Virgin co-CEO said JT Myers said. “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,” Downtown founder Justin Kalifowitz said. “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,” said Virgin co-CEO Nat Pastor said. “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.”

Founded in 2007 as a music publishing company, Downtown is dedicated to empowering artists and businesses in the evolving digital music landscape. With over 20 offices across six continents, Downtown operates in key areas including Artist & Label Services, Distribution, Royalties & Financial Services, and Music Publishing. Its portfolio includes FUGA, Downtown Artist & Label Services, Curve Royalties, CD Baby, Downtown Music Publishing, and Songtrust.

Downtown claims to support artists, songwriters, and rights holders at all stages of their careers –  from emerging talent to established icons – and manages the estates of some of the most influential figures in popular music. The company serves over 5 000 business clients and more than four million creators across 145 countries.

As a partner to the global supply chain of music streaming services, performing rights societies and other rights management organisations, Downtown stands as one of the industry’s most respected businesses, delivering outstanding results to its clients. Through its technology and direct relationships, Downtown consistently and effectively advances the commercial goals of the businesses, artists and songwriters it serves.