Latest news with #DowntownMusic
Reuters
4 hours ago
- Business
- Reuters
EU antitrust regulators to rule on Universal, Downtown Music deal by July 22
BRUSSELS, June 17 (Reuters) - EU antitrust regulators will decide by July 22 whether to clear Universal Music Group's ( opens new tab $775 million acquisition of Downtown Music, according to a European Commission filing on Tuesday. Virgin Music Group, the global independent music unit of Universal, announced the deal in December last year. World number one music label UMG represents global stars such as Taylor Swift and Billie Eilish. Downtown Music collectively serves over 5,000 business clients and more than four million creators across 145 countries. Its music publishing unit counts John Lennon & Yoko Ono, George Gershwin, Miles Davis, Wu-Tang Clan and John Prine among its clients. The EU executive, which acts as the competition enforcer in the 27-country bloc, can clear the deal with or without remedies in its preliminary review or it can open a four-month long investigation if it has serious concerns. Analysts said a full-scale investigation seems the likeliest option in view of the market power of big music labels. The deal has triggered criticism from European independent music labels group Impala which said the acquisition would further entrench Universal's position across European music markets and give it more control over streaming services. Impala, which wants the deal to be blocked, said the acquisition would also reduce opportunities for independent labels. Universal said it look forward to continuing to co-operate with the European Commission in the weeks ahead. "We are confident that we will close this acquisition in the second half of the year, on its original timeline," the company said in an email. A former chief economist at the UK's competition authority in a June 12 letter to EU antitrust chief Teresa Ribera voiced worries about the deal. The acquisition "represents another step in UMG's broader strategy of undermining the vitality and viability of the independent music sector – both in the EU and globally – with a view to strengthening its own position, and potentially also that of the other two majors (Warners and Sony)", Amelia Fletcher said in her letter seen by Reuters. Fletcher co-founded a small independent label and publisher which uses Downtown's services.
Wall Street Journal
9 hours ago
- Business
- Wall Street Journal
EU Reviews Universal Music Group's $775 Million Bid for Downtown
Universal Music Group notified the European Commission of its plan to buy Downtown Music for $775 million, triggering an investigation by the European Union's merger watchdog. The commission set a July 22 deadline to decide whether it can approve the merger or if it raises competition concerns, according to the regulator's website. The companies filed their deal for the EU executive's review on Monday.
Reuters
25-04-2025
- Business
- Reuters
European Commission to assess UMG's proposed acquisition of Downtown Music
BRUSSELS, April 25 (Reuters) - The European Commission said on Friday it would investigate Universal Music Group's ( opens new tab planned $775 million acquisition of independent music services company Downtown Music, confirming earlier media reports. "The transaction threatens to significantly affect competition in certain markets of the music value chain, where both companies are active, in Austria and in the Netherlands, as well as in many other member states," it said in a statement. The commission said it has asked UMG to officially report the deal, since the company cannot move forward with it without first receiving approval from regulators. Founded in 2007, New York-based Downtown began as a music publishing company and has since grown to serve over 5,000 business clients and more than four million creators across 145 countries. It works with a broad network that includes entrepreneurs, songwriters, rights holders, and artists. Virgin Music Group, a unit of UMG, in December proposed to acquire Downtown Music in an all-cash deal. UMG, the world's leading music label representing global stars like Taylor Swift and Billie Eilish, told Reuters in an emailed statement that it remains committed to working with the European Commission. It said it was confident the deal would close according to the original timeline. Virgin Music Group and Downtown Music would merge after the deal closes, expected in the second half of 2025.
