Virgin Music Group, a division of Universal Music Group, has successfully acquired Downtown Music Holdings for $775 million, marking a significant consolidation in the artist services sector. This strategic merger is set to expand the global reach and technological capabilities available to independent artists and labels. Following the completion of the acquisition, Pieter van Rijn, who previously served as Downtown's CEO, has been appointed as the Chief Operating Officer of Virgin Music Group, reporting directly to co-CEOs Nat Pastor and JT Myers. This integration is poised to reinforce the commitment to fostering independent talent by leveraging combined resources and expertise.
Universal Music Group's Virgin Music Group Completes Major Acquisition, Names New COO
In a significant development for the music industry, on an eventful day in February 2026, Universal Music Group's Virgin Music Group announced the finalized acquisition of Downtown Music Holdings LLC for a substantial $775 million. This landmark deal unites two powerful entities in the artist services domain. Coinciding with this acquisition, Pieter van Rijn, who had been at the helm of Downtown Music since 2025 and previously led FUGA, a Netherlands-based distributor, has been elevated to the position of Chief Operating Officer for Virgin Music Group. Mr. van Rijn will continue to operate from Amsterdam, overseeing global operations, technology, product development, and strategic integration across the newly combined enterprises. Justin Kalifowitz, the visionary founder of Downtown, confirmed his departure from the company he established in 2007, marking the end of an era. Andrew Bergman, formerly Downtown's chairman, will transition into a senior advisory role. Downtown Music, founded in 2007, has grown to serve over 5,000 business clients and more than four million creators across 145 countries. Notably, in 2021, the company divested its music publishing copyrights to Concord in a $300 million transaction to sharpen its focus on artist services. This prescient decision positioned Downtown to cater to a growing number of artists seeking infrastructure for music release, manufacturing, and promotion, while retaining ownership of their copyrights. The company's diverse portfolio includes FUGA, Downtown Artist & Label Services, CD Baby, Downtown Music Publishing, and Songtrust. Although the sale was initially announced in December 2024, the European Union conducted a thorough regulatory review, which led to Virgin's agreement to divest the Curve platform, Downtown's royalty and rights management subsidiary. Despite initial opposition from Impala, the European independent music collective, citing concerns about Universal Music Group's market dominance, the acquisition has now been successfully concluded. Nat Pastor emphasized that van Rijn's appointment underscores the deliberate and strategic approach to integrating these businesses, aiming to enhance both Virgin Music Group and Downtown by preserving their unique strengths while bolstering them with increased investment, technology, and global resources for independent entrepreneurs. JT Myers praised the Downtown team's accomplishments, acknowledging Justin Kalifowitz's pioneering spirit and the leadership of Andrew and Pieter in building an organization committed to independent creators. Myers reiterated the commitment to support and expand opportunities for the global independent music community. In his farewell message, Kalifowitz reflected on Downtown's journey, from its early success with the 2007 ringtone of the year to its role in shaping a mindset that champions creator choice, scalable independence, and service as a core strategy.
This significant acquisition by Universal Music Group's Virgin Music Group reflects a broader trend in the music industry towards consolidation and the strategic expansion of artist services. The move highlights the evolving landscape where artist independence is increasingly valued, yet supported by robust infrastructure. The appointment of Pieter van Rijn as COO signals a commitment to integrating diverse business models and technological capabilities to better serve a global community of creators. It underscores the recognition that while artists seek autonomy, they also require comprehensive support for distribution, rights management, and promotion. This strategic alignment could potentially set new standards for how major labels interact with and empower independent talent, fostering innovation and access within the music ecosystem.