EU Approves Universal Music’s Acquisition of Downtown Rights
The European Commission has officially sanctioned Universal Music Group’s (UMG) $775 million acquisition of Downtown Music Holdings. This approval, announced on February 13, follows over a year of regulatory scrutiny. The deal is contingent on UMG divesting Downtown’s Curve royalty accounting business.
Details of the Acquisition
The acquisition process began with UMG’s Virgin Music Group revealing the deal in December 2024. Co-CEOs Nat Pastor and JT Myers expressed their enthusiasm for integrating Downtown’s exceptional team into Virgin Music. They believe this merger will enhance services for independent artists and labels, promoting a more supportive ecosystem.
Statements from Company Leaders
- Nat Pastor & JT Myers: They highlighted the cultural compatibility and complementary strengths of both companies, stating that the merger will empower independent entrepreneurs.
- Pieter van Rijn, CEO of Downtown Music: He described the collaboration with Virgin Music Group as a chance to develop a more dynamic music environment that supports independence.
Downtown Music Holdings Overview
Founded in 2007, Downtown Music Holdings serves over 5,000 clients and more than 4 million creators across 145 countries. Its diverse portfolio includes:
- FUGA
- Downtown Artist & Label Services
- CD Baby
- Downtown Music Publishing
- Songtrust
Post-acquisition, Curve Royalties will remain a separate entity until it is sold to an independent buyer, as mandated by the European Commission.
European Commission’s Findings
Valdis Dombrovskis, Commissioner for Economy, noted the vital role of the music industry in providing diverse services. He stated that the investigation ensured that multiple companies would remain available to serve European music labels and artists.
The Commission emphasized that requiring the sale of Curve was crucial to preventing a large competitor from accessing sensitive data. This decision signifies a commitment to maintaining fair competition in the European music market.
Regulatory Process Timeline
The acquisition faced a thorough regulatory journey:
- June 16, 2025: UMG notified the Commission of the acquisition.
- July 22, 2025: An in-depth Phase II investigation was initiated.
- November 2025: The Commission presented a Statement of Objections to UMG.
- February 13, 2026: The acquisition received approval from the European Commission.
Despite some opposition from the independent music community, UMG remained optimistic throughout the scrutiny phase, promising to work collaboratively with the Commission.
The approval of this acquisition could significantly bolster UMG’s efforts in aiding independent artists and labels by enhancing the scope of services offered through Virgin Music Group and its newly acquired subsidiaries.
