UMG Wraps Downtown Music Buyout, Reveals Executive Shifts

14 months after announcing its Downtown Music Group acquisition – and about one week after gaining EU regulatory approval – UMG’s Virgin Music Group has officially wrapped the $775 million buyout.

Universal Music today confirmed the deal’s long-awaited close alongside a few executive shifts. First, Downtown head Pieter van Rijn has become Virgin Music’s COO and will remain in Amsterdam, reporting to Virgin co-CEOs Nat Pastor and JT Myers.

In the role, van Rijn is expected to oversee the combined companies’ global operations, work towards “ensuring continuity” for existing Downtown clients, and spearhead “new opportunities for growth and collaboration.”

“This combination enhances the choice, service and global reach available to the independent community,” van Rijn said. “I’m grateful to Justin and Andrew for their vision in building Downtown, and to Nat and JT for their trust as we enter this next chapter. Our focus is clear: strengthen what makes both companies special and deliver even greater value to the entrepreneurs we serve.”

Next, longtime Downtown higher-up Andrew Bergman, most recently board chair, is set to “transition into a senior advisory role.” And Downtown founder Justin Kalifowitz, for his part, has exited the company.

“Andrew and I step away proud of what we’ve built together and confident in the leadership and culture that define Downtown today,” Kalifowitz wrote in a message posted on Downtown’s website.

“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,” continued Kalifowitz, who in 2024 founded Klaf Companies.

In statements, each of the mentioned execs highlighted plans to hit the ground running with the unified Virgin-Downtown – with an eye on preserving the units’ “distinct strengths while increasing the investment, technology and global resources available to independent entrepreneurs,” per Pastor.

But as many know, certain elements of the massive acquisition still require attention. Most conspicuously, the European Commission, in signing off, ordered Curve Royalty Systems’ “full divestment.”

Universal/Virgin’s formal release doesn’t mention the London-headquartered royalty processor. However, Downtown must sell the entity (and part with “all” personnel) outright, the Commission emphasized.

“The Commission will approve a suitable purchaser for Curve in a separate procedure,” the EU agency wrote earlier in February.

Given Curve’s comprehensive integration across Downtown – and the fact that multiple team members hold roles with both businesses – the spinoff could prove involved.

Furthermore, against the backdrop of the savings-obsessed Universal Music’s ongoing “realignment plan,” Downtown’s extensive operations are now front of mind as well. That includes the namesake publishing division, Songtrust, CD Baby, FUGA, and several others yet.