Uniting Forces to Empower Independent Music
Expanding the Global Music Infrastructure
Justin Kalifowitz, Andrew Bergman, and Pieter Van Rijn have masterfully built Downtown Music into one of the most diversified and respected operations worldwide. The acquisition by Virgin Music Group enables an expansion on the Downtown legacy. It presents an opportunity to offer the independent music community a dynamic and innovative global infrastructure that encompasses both service offering and territorial footprint. This combination holds great promise for serving independent entrepreneurs, artists, and creators with an even broader portfolio of services.
As JT Myers, Co-CEO of Virgin Music Group, emphasizes, "This is a significant step forward. We look forward to working with the Downtown team to provide comprehensive support and drive the growth of independent music." The acquisition is not just a merger of two entities but a commitment to nurturing the global independent music ecosystem and empowering current and future creators and entrepreneurs.
Joining Forces for the Benefit of Independent Music
Justin Kalifowitz, the Founder of Downtown Music Holdings, expresses his excitement about the partnership. He states, "This is a tremendous recognition of the importance and vitality of independent music. Downtown was established with the belief that every artist and entrepreneur deserves equal opportunities to succeed. Working with Nat, JT, and the whole Virgin Music team, we are confident that the breadth and high level of service we provide to our clients will be further strengthened."
Nat Pastor, Co-CEO of Virgin Music Group, adds, "It's an exciting time for Virgin as we continue to build a next-generation music company. This acquisition is an investment in the future of independent music, providing world-class support, services, and capabilities at every stage of a creator's career." The combined efforts of Virgin Music Group and Downtown Music are set to revolutionize the way independent music is nurtured and promoted.
Empowering Creators in the Digital Landscape
Initially established as a music publishing company in 2007, Downtown Music has dedicated itself to empowering artists and businesses globally in the fast-evolving digital landscape. With more than 20 offices across six continents and core divisions spanning Artist & Label Services, Distribution, Royalties & Financial Services, and Music Publishing, Downtown has become a force to be reckoned with.
Its portfolio of businesses includes FUGA, Downtown Artist & Label Services, Curve Royalties, CD Baby, Downtown Music Publishing, and Songtrust. Downtown works with artists, entrepreneurs, songwriters, and rights holders at every stage of their career, from newcomers to hitmakers and icons. It manages the estates of some of the most beloved and influential artists in music history and collectively serves over 5,000 business clients and more than four million creators in 145 countries.
As a partner to the global supply chain of music streaming services, performing rights societies, and other rights management organizations, Downtown stands as one of the industry's most respected businesses. Through its technology and direct relationships, it consistently advances the commercial goals of the businesses, artists, and songwriters it serves.
Enhanced Services for Clients
Virgin Music Group and Downtown will offer a broadened and enhanced suite of services to clients. This includes digital & physical distribution, release marketing, business intelligence, neighbouring rights, synchronization, royalties, and rights management. The combined expertise and resources of both companies will provide a comprehensive platform for independent music entrepreneurs to thrive.
During the customary regulatory approval period, both Virgin Music Group and Downtown Music will continue to operate independently. Once the deal closes, the full potential of the combination will be realized, bringing together the best of both worlds to serve the needs of the independent music community.
Goldman Sachs & Co. LLC and Skadden, Arps, Slate, Meagher & Flom LLP advised Downtown Music in the transaction, while Kirkland & Ellis LLP, PwC, and Freshfields advised Virgin Music Group. This acquisition marks a significant milestone in the history of the music industry and is expected to have a lasting impact on the future of independent music.