EU to Approve Universal Music's Purchase of Downtown

• The deal is valued at $775 million and awaits final EU regulatory clearance
• Universal offered to sell off Curve, Downtown's royalty services platform, to satisfy antitrust concerns
• The European Commission has not requested further concessions beyond the Curve divestiture

Summary

Universal Music Group is poised to receive conditional EU antitrust approval for its $775 million acquisition of Downtown Music, according to sources familiar with the matter. The European Commission is expected to greenlight the deal following concessions offered by Universal Music.

Key Transaction Details:

• Deal value: $775 million
• Date: EU approval expected January 20, 2026
• Regulatory body: European Commission (EU antitrust watchdog)

Regulatory Concessions:

To address competition concerns, Universal Music offered to divest Downtown's royalty services platform, Curve. Sources indicate the EU has not requested additional concessions beyond this divestiture, suggesting the deal is on track for approval.

Market Implications:

This acquisition represents a significant consolidation in the music industry, strengthening Universal Music Group's position in the music rights and services sector. The required divestiture of Curve demonstrates EU regulators' focus on maintaining competitive dynamics in royalty services, even while permitting broader industry consolidation.

The approval underscores the ongoing trend of major music companies expanding their capabilities beyond traditional recording and distribution into music publishing and rights management services. Downtown Music has been a significant player in independent music rights management, and its integration into Universal's operations (minus the Curve platform) will expand the major label's reach in serving independent artists and publishers.

The conditional nature of the approval shows EU authorities are balancing industry consolidation benefits against maintaining competitive markets for specialized services like royalty administration.