European regulators are preparing to investigate Universal Music Group‘s proposed $775 million takeover of Downtown Music.
That’s according to the Financial Times, which reports that the European Commission is set to launch a probe into the acquisition “amid claims the deal will give too much power to the industry’s largest player”.
The proposed deal has been criticized by independent label representatives, who have urged regulators to look into the deal.
Citing “officials briefed on the preparations,” the FT reports the investigation will be announced on Friday (April 25).
The FT’s report indicates that the EC’s probe will be carried out in response to a referral from the Dutch competition regulator, the Netherlands Authority for Consumers and Markets. UMG trades on Euronext in Amsterdam.
The European Commission has the power to block mergers and acquisitions if they are assessed by the EC to significantly impede competition within the European Union.
UMG’s Virgin Music Group revealed in December that it had agreed to buy Downtown Music Holdings LLC (Downtown) in a deal worth $775 million.
The acquisition, which is subject to regulatory approvals, is expected to close in the second half of 2025.
“We are confident that we will close this acquisition in the second half of the year, on its original timeline”.
Universal Music Group
UMG told the FT that it looks “forward to continuing to co-operate with the commission” and that “we are confident that we will close this acquisition in the second half of the year, on its original timeline”.
Downtown, founded by Justin Kalifowitz, started life as a music publisher in 2007 but today acts as a ‘pure’ services company that operates across recorded music, publishing, and other areas.
It hasn’t owned copyrights since selling a portfolio to Concord for approximately $400 million three-and-a-half years ago.
Today, Downtown works with over 5,000 business clients and more than 4 million creators in 145 countries across its various businesses.
Downtown has more than 20 offices across six continents. Its portfolio of businesses includes FUGA, Downtown Artist & Label Services, Curve Royalties, CD Baby, Downtown Music Publishing and Songtrust.
Music Business Worldwide
