CD Baby, Fuga Swallowed By Universal In $775 Million Deal

Universal Music Group’s Virgin Music Group has announced an agreement to acquire Downtown Music Holdings LLC (Downtown) for $775 million.

After the agreement is formalised, Downtown’s portfolio of businesses, which includes FUGA, CD Baby, Downtown Artist & Label Services, Curve Royalties, Downtown Music Publishing and Songtrust, will sit under the UMG umbrella.

According to a press release, Virgin’s acquisition is subject to regulatory approvals and is set to close in the second half of 2025.

Justin Kalifowitz, the founder of Downtown Music Holdings (alongside Andrew Bergman and Pieter Van Rijn), expressed excitement about teaming up with Virgin Music Group in a press release.

Describing the acquisition news as “tremendous recognition” of the importance and vitality of independent music, as well as the value of Downtown, Kalifowitz added: “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.”

JT Myers, Co-CEO of Virgin Music Group, called Downtown Music “one of the most diversified and respected operations in the world.”

Adding that the combination of Downtown and Virgin Music Group allows the latter company to expand on Downtown’s legacy and offer the “independent music community a dynamic and innovative global infrastructure both in terms of service offering and territorial footprint,” Myers stated that the Virgin team looks forward to working with Downtown Music Holdings “to serve independent entrepreneurs, artists and creators with an even broader portfolio of services.”

Nat Pastor, co-CEO of Virgin Music Group, discussed the company's “exciting” time as it builds a “next-generation” music organisation for independent artists and labels.

Pastor continued, “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.”

In October, Universal Music Group acquired the Belgian-born [PIAS] Group, including its services division, [Integral], which provides physical and digital distribution services to independent labels worldwide.

UMG also acquired the [PIAS] Label Group, which includes labels such as Play It Again Sam, Harmonia Mundi, Demain, Spinefarm, and Source, as well as partner labels like ATO, Heavenly, Mute, and Transgressive.