Yesterday (October 16), Music Business Worldwide published a collection of views from leaders in the global independent music distribution space on a significant industry topic: Universal‘s proposed $775 million takeover of Downtown.
That takeover, which would see UMG acquire Downtown and subsidiaries such as CD Baby, Curve, and FUGA, is currently the subject of an anti-competition investigation by the European Commission (EC).
Our article yesterday collated comments on the deal from leaders of standout indie distributors/music delivery specialists such as UnitedMasters, OneRPM, Believe, AudioSalad, Zebralution, IDOL, Ditto, Symphonic Distribution, and more.
Most distributors quoted in the feature stated they were unfazed by the prospect of UMG acquiring Downtown/FUGA, despite the obvious competitive challenge the deal may lay at their door.
Indeed, most company founders were hopeful they might even gain business, as they look to poach Downtown/FUGA clients who may look to leave should UMG complete the transaction.
Konrad Von Löhneysen, CEO of Germany’s Zebralution, summed up this view when he told MBW: “We have our own supply chain, so we’re not fazed about FUGA being taken over by Universal… if the FUGA/Virgin/Downtown setup isn’t an appealing offering for some independent labels, we’ll make sure they know about us.”
“I’ve seen a lot of focus on what this means for Virgin and UMG, but to me, this is an even bigger win for Downtown. Entrepreneurs building sustainable companies in the independent space should be celebrated for reaching meaningful outcomes like this, not criticized for them.”
Gregory Hirschhorn, Too Lost
A significant player that wasn’t quoted by MBW was Too Lost – one of the fastest-growing independent distribution and publishing companies in the world, and a striking success story for music entrepreneurialism over the past five years.
New York-headquartered Too Lost, founded in 2020, serves over 300,000 labels and artists, and has released music from acts including Teddy Swims, Tory Lanez, Pink Sweat$, Chief Keef, Royel Otis, KAYTRANADA, and Alex Warren.
The profitable company confirmed earlier this year that it is on track to surpass $100 million in annual revenue in 2025, having achieved 130%+ YoY growth in 2024.
Too Lost co-founder and CEO, Gregory Hirschhorn, was travelling when MBW asked for comment on UMG/Downtown earlier this week, but has now stated his views on the record.
Unsurprisingly, they add a thoughtful and sharp perspective, and you can read them below. (We’ve also added them to yesterday’s round-up.)
Says Hirschhorn: “The independent sector remains the fastest-growing part of the global music business, and [the UMG/Downtown] merger highlights just how valuable that ecosystem has become.
“I’ve seen a lot of focus on what this means for Virgin and UMG, but to me, this is an even bigger win for Downtown. Entrepreneurs building sustainable companies in the independent space should be celebrated for reaching meaningful outcomes like this, not criticized for them.”
“Too Lost is well-positioned to continue growing regardless of consolidation among larger players… Competition has always been part of our DNA.”
Gregory Hirschhorn, Too Lost
He adds: “From my perspective, Too Lost is well-positioned to continue growing regardless of consolidation among larger players.
“When I started the company, there were already dozens of distributors in the market. Competition has always been part of our DNA.
“We’ve never worked with Downtown or FUGA, so there’s no direct impact to our operations. And for clients who prefer to remain fully independent of the major label system, companies like Too Lost offer strong, scalable alternatives.
“We’ve already welcomed several former Downtown clients who share that vision, and I expect we’ll see more to come.”
In the past few weeks, Too Lost has made two seven-figure investments (one into an indie label, Rebellion Records, and another into a catalog acquisition company, AntiFragile Equity Partners) while also inking a partnership with superfan platform, EVEN.
Significant independent music companies opposing Universal’s takeover of Downtown include Beggars Group, Secretly Group, and Exceleration Music.
The EC’s Phase II investigation into the deal is currently paused, with its ultimate verdict now expected to arrive as late as Q1 2026.Music Business Worldwide
