Beverly Hills-based Virgin Music Group stated Monday it’ll purchase Downtown Music Holdings for $775 million, boosting its unbiased music capabilities.
Virgin Music Group, the unbiased music division of Universal Music Group, stated its acquisition of the New York-based publishing and royalties firm will deliver an “expanded and improved suite of shopper providers,” together with in areas equivalent to bodily distribution and digital. , enterprise intelligence and royalty and rights administration.
“It’s an thrilling time for Virgin as we proceed to construct a next-generation music firm for unbiased artists and labels,” Nat Pastor, co-CEO of Virgin Music Group, stated in an announcement. “We’re not simply making an acquisition; that is an funding within the international unbiased music ecosystem and a dedication to nurturing present and future creators and entrepreneurs with the world-class assist, providers and capabilities they want at each stage of their profession.”
Downtown Music represents greater than 50 million songs and 4 million creators in at the very least 145 nations. The essential divisions of the corporate, which has about 600 workers worldwide, embody publishing, distribution, artist and label providers, in addition to royalties and monetary providers, based on its report. website.
Justin Kalifowitz, founding father of Downtown Music Holdings, stated he believes his firm’s service to clients shall be strengthened by working with the Virgin Music staff.
“This is an amazing recognition of the significance and vitality of unbiased music and the worth our firm delivers to its clients daily,” Kalifowitz stated in an announcement. “Downtown was based with the assumption that artists and entrepreneurs in every single place and at each stage are entitled to the identical instruments and alternatives to succeed.”
The deal is anticipated to shut within the second half of subsequent yr. Spokespeople for Virgin and Downtown Music didn’t instantly reply to questions. .
The acquisition is the most recent signal of consolidation within the music trade, elevating concern amongst some critics.
“It is significant that we assist true selection of companions for artists and labels and make sure that negotiating energy doesn’t develop into unbalanced,” Gee Davy, CEO of the Assn. of Independent Music, he told Variety. “Only on this means will native artists and companies be capable of entry truthful offers, funding and progress.”
