Universal Music Group’s $775 million acquisition of the music-services giant Downtown Music Holdings is likely to be approved by the European Commission in the coming weeks, according to a new report in Reuters citing sources with “direct knowledge of the matter.”
The deal was delayed pending an investigation by the EU’s executive branch that kicked off last summer and resulted in objections to the merger from the Commission made public last November.
The Reuters report follows Universal Music’s proposal in December to excise Downtown’s royalty and rights-management division, Curve, from its acquisition.
The divestment was suggested in order to address concerns over the “commercially sensitive” data that Curve has on its clients, which in Universal Music’s hands could “hamper rival labels’ ability and incentive to compete,” the EC wrote in its objections. On its website, Curve writes that it is “a proud partner to over 500 labels, publishers and rights holders around the world.”
If the deal goes through, Universal is likely to integrate Downtown into its own independent-music division, Virgin, which has taken on more functions of an artist-services company in recent years. Downtown launched as a music publisher but in 2021 sold its formidable publishing assets to Concord for $300 million and focused on growing its then-burgeoning artist services division — which it clearly has done.
Representatives for Universal Music did not immediately respond to a request for comment, but sources tell Variety the company remains confident the deal will be approved.
Independent labels in Europe continue to oppose the acquisition vehemently, stressing that other subsidiaries still included in the acquisition, like CD Baby and Songtrust, have data very similar to Curve’s, making the exclusion of Curve inadequate in addressing their concerns over the deal.
Love Film & TV?
Get your daily dose of everything happening in music, film and TV in Australia and abroad.
“I think it should be blocked because it will create an imbalance and it will give [Universal Music] further dominance in a market in which they’re already dominant,” Beggars Group founder and chairman Martin Mills, a leading figure in the independent-music landscape, said last month to the Sunday Times.
Last summer, a letter in opposition to the merger issued by over 200 representatives from independent labels across Europe – including Beggars Group as well as 4AD, Secretly Group, Sub Pop and many others – was published by indie label association IMPALA. The labels wrote that the merger would “reduce choice for consumers, stifle experimentation, and undermine Europe’s role as a vibrant incubator of musical and artistic expression. Fans will hear less of the new and more of the same.”
The European Commission is scheduled to make a final decision on the merger on or before Feb. 6, 2026.
From Variety US