By Staff Writer – July 10, 2025
Virgin Music Group's top executives have come out swinging against critics of their proposed acquisition of Downtown Music Holdings, calling the opposition's claims “juvenile and offensive falsehoods.” In a firm internal memo shared with staff earlier this month, co-CEOs Nat Pastor and JT Myers defended the $775 million deal, pushing back against what they describe as misleading and inflammatory rhetoric coming from voices within the independent music sector. One of the most contentious points raised by critics has been the accusation that Virgin, under the ownership of Universal Music Group, would misuse client data from Downtown's various services to gain a competitive edge. Pastor and Myers denied these claims outright, stating that in all their years of operation, there has never been a single instance of data misuse or a complaint regarding client confidentiality.
They also addressed rumors that the acquisition would result in the downsizing or dismantling of services like FUGA, CD Baby, Downtown Music Publishing, Curve, and Songtrust. According to the memo, not only will those services remain intact, but Virgin Music Group also plans to invest in and expand them. The aim, the executives stated, is to create more opportunities and options for independent artists, not fewer. Pastor and Myers went further, rejecting arguments that the acquisition would harm the independent sector's market share or reduce competition. Contrary to fears that the deal would tighten Universal's grip on the global music industry, the pair emphasized that the independent music scene has been growing steadily and remains robust in its diversity of offerings.
Of particular note was their response to public statements made by Beggars Group founder Martin Mills, who previously warned that the acquisition posed a serious threat to the industry's independence and labeled Virgin's intentions as deceptive. The memo characterized such remarks as “an insult” and accused some industry players of spreading “deliberate falsehoods” in an attempt to derail the deal.While the criticism has been sharp, Virgin's leadership maintained that their focus remains on artist development, transparency, and choice. They asserted that the modern independent landscape is no longer one-size-fits-all, but a broad ecosystem ranging from grassroots creators to multimillion-dollar indie powerhouses. The acquisition is currently undergoing scrutiny by European regulators. A final decision is expected by July 22, which will determine whether the deal moves forward, is subject to further conditions, or enters a deeper investigation phase.
The Virgin Downtown deal has emerged as a flashpoint in the ongoing debate about independence, innovation, and consolidation in the music industry. While the promise of growth and empowerment is clear, so too are the concerns raised by longstanding voices in the indie world. All eyes now turn to regulators and the industry itself to determine whether this merger will shape a stronger future for creators or limit the very independence it aims to support.