Universal Music, Virgin Close $775 Million Deal to Buy Downtown In Major Expansion

Hollywood Reporter

by Ethan Millman

February 20, 2026

AI-Generated Deep Dive Summary

Universal Music Group (UMG) and its subsidiary Virgin Music Group have finalized their $775 million acquisition of Downtown Music, marking a significant expansion for the music giant. The deal was approved by EU competition authorities last week after over a year since it was first announced in December 2024. Pieter van Rijn, former CEO of Downtown, has been appointed as Chief Operating Officer of Virgin Music Group and will report to its co-CEOs, Nat Pastor and JT Myers. Justin Kalifowitz, founder of Downtown, is stepping down from his role, while Andrew Bergman will take on a senior advisory position. The acquisition aims to combine the strengths of both companies, offering independent creators greater resources, technology, and global reach. The deal has faced criticism from the indie music sector, with groups like A2IM and IMPALA raising concerns about competition issues arising from UMG's growing control over key indie distribution services such as CD Baby and FUGA. Despite these criticisms, UMG and Virgin see the acquisition as a strategic move to enhance their offerings for independent artists. The companies emphasize that the deal will strengthen both Downtown and Virgin Music Group, preserving their distinct identities while expanding opportunities for the global independent community. The completion of the deal highlights the growing trend of major music companies acquiring indie distribution platforms to gain a larger share of the market, particularly as the industry shifts toward indie-focused content. Since UMG's acquisition of Downtown, other major players like Concord have also made similar moves, such as their purchase of distributor Stem. Van Rijn has stated that the focus will be on building a stronger partnership between UMG and Downtown to better serve independent creators. This deal matters because it shapes the future of the music industry, influencing how content is distributed and who controls key platforms. For readers interested in entertainment and

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Originally published on Hollywood Reporter on 2/20/2026