Virgin Music Group (VMG) introduced on Friday (February 20) that it has accomplished its acquisition of Downtown Music Holdings LLC (Downtown).
The closure follows the European Fee’s approval of the deal final Friday (February 13), topic to Common Music Group‘s dedication to divest Downtown’s Curve royalty accounting enterprise.
UMG’s Virgin Music Group first introduced the transaction in December 2024.
Alongside the deal’s completion, it was introduced that Pieter van Rijn has been appointed Chief Working Officer of VMG, having been CEO of Downtown since final 12 months.
He’ll report back to co-CEOs Nat Pastor and JT Myers and can proceed to be primarily based in Amsterdam.
Downtown Founder Justin Kalifowitz confirmed he’s stepping away from the corporate he based in 2007. Andrew Bergman, beforehand Chairman of Downtown, will transition right into a senior advisory function.
In a Founder’s Letter shared on Friday (which you’ll be able to learn in full beneath), Kalifowitz mirrored on Downtown’s origins: “After we first began Downtown’s publishing enterprise, the music trade was in freefall,” he mentioned.
“Our first hit was the 2007 ringtone of the 12 months — a phrase that now feels museum-worthy. CDs have been collapsing, streaming hadn’t but discovered its footing, and a lot of the dialog centered on what was being misplaced. We noticed one thing completely different.”
He added: “We believed extra music could be created, not much less. Extra entrepreneurs would enter the enterprise, not fewer. Extra world participation. Extra direct relationships. The query wasn’t the right way to defend what had been — it was the right way to construct for what was coming.”
Based on the announcement on Friday (February 20), the completion of the deal marks “a major milestone within the creation of a worldwide, end-to-end resolution that meets the evolving wants of unbiased entrepreneurs, artists, and rights holders”.
Initially established in 2007, Downtown collectively serves over 5,000 enterprise purchasers and greater than 4 million creators in 145 nations.
At present, the corporate has core divisions throughout Artist & Label Providers, Distribution, and Music Publishing. The corporate’s portfolio of companies contains FUGA, Downtown Artist & Label Providers, CD Child, Downtown Music Publishing and Songtrust.
VMG famous that with in depth management expertise throughout each Downtown Music and FUGA, van Rijn has been a “key architect within the improvement of revolutionary, scalable companies designed to empower the unbiased group”.
The corporate added that as COO of Virgin Music Group, he’ll oversee world operations, tech, product, and strategic integration throughout the mixed companies, in addition to “making certain continuity for Downtown’s purchasers, groups, and types whereas unlocking new alternatives for progress and collaboration”.
“Pieter’s appointment alerts our intent to carry these companies collectively thoughtfully and strategically.”
Nat Pastor
Nat Pastor mentioned: “Pieter’s appointment alerts our intent to carry these companies collectively thoughtfully and strategically.
“That is about making each Virgin Music Group and Downtown even higher — preserving their distinct strengths whereas growing the funding, expertise and world assets accessible to unbiased entrepreneurs. Pieter’s expertise and management make him the precise individual to assist information us ahead.”
“I’m grateful to Justin and Andrew for his or her imaginative and prescient in constructing Downtown, and to Nat and JT for his or her belief as we enter this subsequent chapter.”
Pieter van Rijn
Pieter van Rijn mentioned: “This mixture enhances the selection, service and world attain accessible to the unbiased group.
“I’m grateful to Justin and Andrew for his or her imaginative and prescient in constructing Downtown, and to Nat and JT for his or her belief as we enter this subsequent chapter. Our focus is evident: strengthen what makes each firms particular and ship even better worth to the entrepreneurs we serve.”
“At present acknowledges the extraordinary firm the Downtown crew has constructed.”
JT Myers
JT Myers mentioned: “At present acknowledges the extraordinary firm the Downtown crew has constructed. Justin’s pioneering spirit — and the management of Andrew, Pieter and colleagues worldwide — created a corporation outlined by its highly effective perception in unbiased creators.
“We deeply respect what this crew has constructed and are dedicated to backing it, defending what makes Downtown profitable, and increasing alternatives for the worldwide unbiased group.”
“Justin and I look ahead to cheering on Nat, JT, Pieter and the mixed groups as they proceed to create new alternatives for the worldwide music group.”
Andrew Bergman
Andrew Bergman mentioned: “I’m extraordinarily pleased with the tradition we created, grounded in belief, long-term partnership and the fixed pursuit of excellence. Pieter van Rijn epitomizes that tradition and watching my good friend develop into such an distinctive chief has been extraordinarily gratifying.
“Justin and I look ahead to cheering on Nat, JT, Pieter and the mixed groups as they proceed to create new alternatives for the worldwide music group.”
VMG famous that, since turning into Downtown’s CEO in 2024, Pieter van Rijn has been chargeable for main Downtown Music’s world enterprise {and professional} companies, spanning distribution, artist and label companies, publishing administration, neighbouring rights and sync licensing.
Previous to turning into President of Downtown Music in July 2022, he served as CEO of world music distributor FUGA, becoming a member of in 2014 and guiding the corporate by way of “a interval of great worldwide enlargement and technological innovation,”
Beneath his management, FUGA grew to serve greater than 900 trade purchasers throughout over 50 nations.
Initially headquartered in Amsterdam, van Rijn expanded the corporate’s world footprint with hubs throughout EMEA, North America, LATAM and APAC, reworking FUGA right into a full-service label companies accomplice providing advertising, sync, royalty accounting, bodily distribution, viewers improvement and superior knowledge insights, “whereas sustaining its popularity as a number one music-technology platform”.
You possibly can learn Justin Kalifowitz’s message in full beneath:
After we first began Downtown’s publishing enterprise, the music trade was in freefall. Our first hit was the 2007 ringtone of the 12 months — a phrase that now feels museum-worthy. CDs have been collapsing, streaming hadn’t but discovered its footing, and a lot of the dialog centered on what was being misplaced.
We noticed one thing completely different.
We believed extra music could be created, not much less. Extra entrepreneurs would enter the enterprise, not fewer. Extra world participation. Extra direct relationships. The query wasn’t the right way to defend what had been — it was the right way to construct for what was coming.
Downtown grew up inside that perception. We weren’t excellent, however we have been all the time tinkering — questioning, adjusting, enhancing. Attempting to serve artists, entrepreneurs, and companions higher at this time than the day earlier than. Service beats management. Infrastructure beats trend-chasing. Tradition beats hierarchy.
Of all of the modifications over the previous 20 years, the one I consider we helped form most is mindset — that creators deserve alternative, that independence can scale, that service just isn’t a weak point however a method.
What I’m personally most pleased with isn’t a catalog, an acquisition, or a headline. It’s our individuals. The operators who confirmed up on daily basis and did the work. The alumni who now sit throughout this trade and past. The companions who trusted us. The creators who selected us. Practically 20 years later, that’s the true story.
To everybody who has been a part of the journey — and particularly these working with us for the reason that very starting — thanks.
Andrew and I step away pleased with what we’ve constructed collectively and assured within the management and tradition that outline Downtown at this time. We congratulate our good good friend Pieter on his new function and need Nat, JT, and the broader Virgin crew nothing however one of the best as they carry the enterprise ahead into its subsequent chapter.
Corporations evolve. Markets shift. Robust cultures endure.
I do know that is solely Downtown’s story — up to now.
JustinMusic Enterprise Worldwide
