Virgin Music Group, the independent-distribution and artist-services division of Universal Music Group, has announced the completion of its $775 million acquisition of Downtown Music Holdings LLC, one of the largest artist-services companies in the world.
At the same time, Pieter van Rijn was appointed chief operating officer, having been CEO of Downtown since last year (and previously CEO of Netherlands-based distributor and services company FUGA). He will report to Virgin co-CEOs Nat Pastor and JT Myers and will continue to be based in Amsterdam.
Downtown founder Justin Kalifowitz confirmed he is stepping away from the company he launched in 2007, via a letter on Downtown’s website. Andrew Bergman, previously chairman of Downtown, will transition into a senior advisory role.
Initially established in 2007, Downtown collectively serves over 5,000 business clients and more than four million creators in 145 countries, according to the announcement. While it was formerly a major publishing company, in 2021 it sold its copyrights to Concord in a $300 million to focus on artist services, a surprise move that turned out to be prescient as more and more artists own their copyrights but lack the infrastructure to release, manufacture and promote their music — which artist service companies provide. Downtown currently has core divisions across artist & label services, distribution, and a new music publishing unit. The company’s portfolio of businesses includes FUGA, Downtown Artist & Label Services, CD Baby, Downtown Music Publishing and Songtrust.
While the sale was announced in December of 2024, the European Union conducted an extensive regulatory analysis; Virgin agreed to divest the Curve platform, Downtown’s royalty and rights management subsidiary, as part of its deal.
The sale was strenuously opposed by Impala, the European independent music collective, arguing essentially on the grounds that Universal, already the world’s largest music company, is large enough.
As COO of Virgin Music Group, van Rijn will oversee global operations, tech, product and strategic integration across the combined businesses, according to the announcement.
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Pastor says, “Pieter’s appointment signals our intent to bring these businesses together thoughtfully and strategically. This is about making both Virgin Music Group and Downtown even better — preserving their distinct strengths while increasing the investment, technology and global resources available to independent entrepreneurs.”
Myers adds, “Today recognizes the extraordinary company the Downtown team has built. Justin’s pioneering spirit — and the leadership of Andrew, Pieter and colleagues worldwide — created an organization defined by its powerful belief in independent creators. We deeply respect what this team has built and are committed to backing it, protecting what makes Downtown successful, and expanding opportunities for the global independent community.”
In a farewell letter posted on the Downtown website, Kalifowitz — who has been pursuing other business interests since he stepped down as CEO in 2024 — wrote in part, “Our first hit was the 2007 ringtone of the year — a phrase that now feels museum-worthy. CDs were collapsing, streaming hadn’t yet found its footing, and most of the conversation centered on what was being lost. …
“Of all the changes over the past two decades,” he continues, “the one I believe we helped shape most is mindset — that creators deserve choice, that independence can scale, that service is not a weakness but a strategy.”
From Variety US