Source: Merlin Network

Curve Royalty Systems Becomes Independent After Merlin and Jamen Capital Complete Acquisition

Jamen Capital and independent-music organization Merlin completed their acquisition of Curve Royalty Systems from Virgin Music Group, establishing the royalty-accounting company as an independent business under new ownership.

The transaction was required as part of the European Commission's approval of Universal Music Group's $775 million acquisition of Downtown Music Holdings. Regulators required UMG to divest Curve because of concerns surrounding competition and independence in music-industry services. Curve's leadership, employees and existing client relationships are expected to remain in place following the deal.

Why It Matters

Royalty accounting has become one of the most important pieces of infrastructure behind the modern music industry.

As artists, labels and publishers collect revenue from streaming services, social platforms, performance royalties and international markets, companies like Curve are responsible for processing increasingly complicated amounts of data and ensuring rights holders are paid correctly.

The European Commission's decision to require Curve's sale also demonstrates that regulators are paying closer attention to how much infrastructure major music companies control.

Industry Impact

Universal's acquisition of Downtown expanded its presence beyond traditional recorded music into distribution and music-industry services.

Requiring Curve to remain independent suggests regulators may increasingly examine major-label acquisitions based not only on catalog ownership, but also on control of the technology and services smaller music companies depend on.

For independent labels and publishers, maintaining neutral royalty-processing platforms could become increasingly important as consolidation continues throughout the industry.