The Berlaymont building. Photo Credit: Guillaume Périgois
Is the European Commission preparing to approve Universal Music’s proposed Downtown deal? Ahead of a February decision deadline, the major says it’s “submitted a robust remedy” addressing “the Commission’s only remaining concern.”
Universal Music Group (UMG) confirmed the potential remedy in a brief (and somewhat vague) statement today. Spanning about 70 words – a portion of which appeared verbatim in UMG’s prior remarks – the comments don’t cover a ton of new ground.
But they do point to “constructive conversations” between UMG and the EU executive branch, which in late November slapped the $775 million buyout with a “statement of objections.”
“Following constructive conversations with the European Commission,” Universal Music indicated today, “we have submitted a robust remedy that comprehensively addresses the Commission’s only remaining concern.
“This deal is about offering independent music entrepreneurs access to world-class tools and support to help them succeed. We continue to express confidence that the Commission will recognize the benefits of the transaction for artists, labels, independent music, and fans in Europe, and clear the transaction swiftly,” the company concluded.
Conspicuously absent from the update is a description of what the “robust remedy” entails. More generally, however, the lone “remaining concern” clarification does suggest that the months-in-the-making purchase could be trending towards approval.
Assuming this is actually the case, it would seemingly align with the tone of the Commission’s statement of objections overview. As we reported last month, the entity specifically mentioned the possibility of UMG’s securing “the ability and incentive to gain access to commercially sensitive data that is stored and processed by Downtown’s Curve.”
And the “information advantage,” the Commission continued, could enable UMG to “hamper rival labels’ ability and incentive to compete.”
Also as we noted in November, the concern didn’t jump out as an insurmountable obstacle for UMG; among other things, Downtown only added Curve to its portfolio in 2023.
In any event, assuming the current schedule is free of additional delays, it won’t be too long until EU regulators hand down a final decision.
Said decision is due by February 6th, eight weeks from today. Furthermore, though not directly related to the Downtown acquisition, Euronext Amsterdam-listed Universal Music’s secondary U.S. listing might set sail in early 2026 as well.
While that listing hasn’t attracted much attention as of late, it was expected to materialize in September; Universal Music previously disclosed plans to “use commercially reasonable efforts to launch an underwritten offering for the sale of certain shares owned by Pershing [Square] by September 15, 2025, subject to regulatory approval and market conditions.”
