Virgin Music Group completes acquisition of Downtown Music Holdings

VMG, which operates under UMG, first announced the proposed acquisition in December 2024.

Alongside the completion of the deal, Pieter van Rijn has been appointed chief operating officer of Virgin Music Group. Van Rijn, who has served as Downtown’s Chief Executive Officer since 2024, will report to VMG co-chief executives Nat Pastor and JT Myers and will continue to be based in Amsterdam.

Downtown founder Justin Kalifowitz confirmed that he is stepping away from the company he founded in 2007. Andrew Bergman, previously chairman of Downtown, will move into a senior advisory role.

In a founder’s letter shared on Friday, Kalifowitz reflected on the company’s early years. “When we first started Downtown’s publishing business, the music industry was in freefall,” he said. “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 centred on what was being lost. We saw something different.”

He added: “We believed more music would be created, not less. More entrepreneurs would enter the business, not fewer. More global participation. More direct relationships. The question wasn’t how to protect what had been, it was how to build for what was coming.”

According to VMG, the completion of the transaction marks a step towards creating what it described as a global, end-to-end service platform for independent artists, entrepreneurs and rights holders.

Founded in 2007, Downtown serves more than 5 000 business clients and over four million creators across 145 countries. Its operations span artist and label services, distribution and music publishing. The group’s portfolio includes FUGA, Downtown Artist & Label Services, CD Baby, Downtown Music Publishing and Songtrust.

VMG said van Rijn will oversee global operations, technology, product development and strategic integration across the combined businesses, with responsibility for continuity across Downtown’s clients, teams and brands.

Nat Pastor said: “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.”

Van Rijn said the transaction would expand options for independent creators. “This combination enhances the choice, service and global reach available to the independent community,” he said. “Our focus is clear: strengthen what makes both companies special and deliver even greater value to the entrepreneurs we serve.”

JT Myers said: “Today recognises the extraordinary company the Downtown team has built. Justin’s pioneering spirit, and the leadership of Andrew, Pieter and colleagues worldwide, created an organisation defined by its powerful belief in independent creators.”

Andrew Bergman said he was proud of the company’s culture and leadership. “I’m extremely proud of the culture we created, grounded in trust, long-term partnership and the constant pursuit of excellence,” he said. “Pieter van Rijn epitomises that culture.”

Van Rijn joined Downtown in 2014 as chief executive of FUGA, the global music distributor, and later became president of Downtown Music in 2022. During his tenure at FUGA, the company expanded internationally, serving more than 900 clients in over 50 countries, and developed into a full-service label services and music technology platform.

Read Justin Kalifowitz’s message in full below:

When we first started Downtown’s publishing business, the music industry was in freefall. 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.

We saw something different.

We believed more music would be created, not less. More entrepreneurs would enter the business, not fewer. More global participation. More direct relationships. The question wasn’t how to protect what had been — it was how to build for what was coming.

Downtown grew up inside that belief. We weren’t perfect, but we were always tinkering — questioning, adjusting, improving. Trying to serve artists, entrepreneurs, and partners better today than the day before. Service beats control. Infrastructure beats trend-chasing. Culture beats hierarchy.

Of all the changes over the past two decades, 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.

What I’m personally most proud of isn’t a catalog, an acquisition, or a headline. It’s our people. The operators who showed up every day and did the work. The alumni who now sit across this industry and beyond. The partners who trusted us. The creators who chose us. Nearly two decades later, that’s the real story.

To everyone who has been part of the journey — and especially those running with us since the very beginning — thank you.

Andrew and I step away proud of what we’ve built together and confident in the leadership and culture that define Downtown today. We congratulate our good friend Pieter on his new role and wish Nat, JT, and the broader Virgin team nothing but the best as they carry the business forward into its next chapter.

Companies evolve. Markets shift. Strong cultures endure.

I know this is only Downtown’s story — so far.