It’s a executed deal. The European Fee has accepted Common Music Group‘s proposed $775 million acquisition of Downtown Music Holdings.
The conditional approval is topic to UMG’s dedication to divest Downtown’s Curve royalty accounting enterprise.
The inexperienced mild from the EC, introduced Friday (February 13), concludes a regulatory course of spanning greater than a 12 months since UMG’s Virgin Music Group first introduced the transaction in December 2024.
Nat Pastor & JT Myers, Co-CEOs of Virgin Music Group stated in an announcement:“Bringing Downtown’s distinctive group and capabilities to Virgin Music Group means higher flexibility and a sharper set of companies for unbiased entrepreneurs, artists and labels.”
Picture Credit score: Jordan Strauss
“We admire the European Fee’s considerate overview and sit up for welcoming our new Downtown companions and colleagues as we proceed to empower the unbiased group collectively.”
Nat Pastor & JT Myers, Co-CEOs of Virgin Music Group
They added: “By uniting two culturally appropriate corporations with deeply complementary strengths, we’re making a extra highly effective, extra open ecosystem that gives unbiased entrepreneurs the assets, funding and know-how to succeed on their very own phrases. We admire the European Fee’s considerate overview and sit up for welcoming our new Downtown companions and colleagues as we proceed to empower the unbiased group collectively.”
“We’re delighted to enter this subsequent chapter of Downtown’s evolution and work intently with Nat, JT and the broader Virgin group to proceed championing unbiased music on a very international scale.”
Pieter van Rijn, Downtown Music
Pieter van Rijn, CEO of Downtown Music added: “By becoming a member of forces with Virgin Music Group, we’re serving to construct a extra numerous, dynamic and opportunity-rich setting—one which amplifies independence and expands the cultural affect of the extraordinary companions we serve. We’re delighted to enter this subsequent chapter of Downtown’s evolution and work intently with Nat, JT and the broader Virgin group to proceed championing unbiased music on a very international scale.”
Established in 2007, Downtown collectively serves over 5,000 enterprise purchasers and greater than 4 million creators in 145 international locations. The corporate’s portfolio of companies additionally consists of FUGA, Downtown Artist & Label Providers, CD Child, Downtown Music Publishing and Songtrust.
Following the EC’s resolution and the closing of the deal, Curve Royalties will likely be held as a separate enterprise till its divestment.
Valdis Dombrovskis, Commissioner for Financial system and Productiveness; Implementation and Simplification, stated in an announcement: “The music trade performs an necessary position in bringing artists’ creations to audiences, and it’s important to uphold the provision of numerous service suppliers for customers.”
“Our in-depth investigation confirmed that a lot of corporations will proceed to supply their distribution companies to European music labels and artists.”
Valdis Dombrovskis, Commissioner
“Our in-depth investigation confirmed that a lot of corporations will proceed to supply their distribution companies to European music labels and artists.
“By requiring the divestment of Curve, we’re taking a decisive step to guard delicate information and stop it from being managed by a big competitor. Immediately’s resolution displays the Fee’s dedication to selling truthful competitors and supporting a thriving and numerous music panorama in Europe.”
Underneath the phrases of the approval, UMG should promote Curve Royalty Techniques as a standalone enterprise to an unbiased purchaser accepted by the Fee.
The divestiture addresses the EC’s main competitors concern: that UMG might acquire entry to commercially delicate information saved and processed by Curve, doubtlessly hampering rival labels’ capacity to compete.
UMG submitted formal commitments to the EC in December outlining the Curve divestiture plan. The proposed treatment dedicated UMG to divesting your complete Curve enterprise, together with all staff (besides two retained engineers), buyer contracts, and the Curve Platform software program and associated belongings.
The approval permits UMG to proceed with buying Downtown’s different subsidiaries, together with FUGA music distribution, CD Child, and Songtrust publishing administration, considerably increasing Virgin Music Group’s capabilities in serving unbiased artists and labels.
The deal confronted a prolonged regulatory journey after UMG formally notified the Fee of the transaction on 16 June 2025. The EC opened an in-depth Part II investigation on 22 July 2025, following an preliminary Part I overview, citing preliminary issues that the transaction might permit UMG to scale back competitors within the wholesale distribution marketplace for recorded music within the European Financial Space.
In November, the Fee escalated issues additional by issuing a Assertion of Objections to UMG, formally outlining its issues about potential information entry points stemming from UMG’s possession of Curve.
All through the method, UMG maintained confidence the deal could be accepted. Following the Assertion of Objections, a UMG spokesperson stated the corporate appeared ahead to “persevering with to work constructively with the Fee towards a profitable conclusion of this course of.”
The transaction attracted fierce opposition from components of the unbiased musical c group. Over 200 folks signed a letter in July objecting to the acquisition, together with staff from Beggars Group and Secretly Group corporations. A “100 Voices” marketing campaign launched in October that includes testimonies from indie representatives urged the EC to dam the deal outright.
IMPALA, which represents unbiased labels in Europe, had known as on the regulator to ban the deal, arguing that cures could be ineffective in addressing competitors issues.
