Universal Music Group (UMG) has sold Curve Royalty Systems to Merlin and Jamen Capital, the investment vehicle of Matt Spetzler, fulfilling a divestiture requirement imposed by the European Commission (EC) as a condition of UMG’s acquisition of Downtown Music Holdings. The deal returns the royalty processing platform to independent ownership.
EC Mandated Sale
The European Commission required the divestiture as part of its phase two investigation into UMG’s purchase of Downtown Music Holdings. The sale is the only phase two decision in 2025 to result in remedies, according to IMPALA.
Independent Sector Welcomes Return to Independent Ownership
Merlin CEO Charlie Lexton said the acquisition ensures Curve remains a neutral, independently owned infrastructure asset for the independent sector.
“Curve provides an essential service to independent music businesses around the world and has earned enormous trust through the quality of its service and relationships. Merlin is here to enable our members’ independence, and to be truly independent our sector needs its own infrastructure. Curve is central to that. That’s why ensuring its future independence and neutrality was vital to us and it’s why we stepped up to make this acquisition. We are delighted to support the next stage of Curve‘s growth while ensuring it remains a part of the community it serves.”
Helen Smith, Executive Chair of IMPALA (Independent Music Companies Association), welcomed the divestment, noting that the EC’s phase two investigation was the only such review in 2025 to result in remedies.
“Restoring Curve to independent ownership is great news for the independent ecosystem and we look forward to the EC approving. A detailed phase two investigation was carried out by the EC and we thank them for taking that on and securing this divestment, the only phase two decision in 2025 that resulted in remedies. The report ‘Powering an Independent and Culturally Diverse European Music Ecosystem’ by analyst Dan Fowler earlier this year underlines the importance of diversity and independence for the whole ecosystem.”
Curve and Its New Stewards
Curve Royalty Systems provides royalty accounting and income tracking services to independent labels, distributors, and music companies globally.
Merlin acts as a digital licensing partner for independent labels and distributors, negotiating deals with platforms such as Apple, Spotify, YouTube, and Deezer. Its membership spans more than 70 countries and represents approximately 15% of the global recorded music market. IMPALA represents over 6,000 independent music companies across Europe, the vast majority of which are small, micro, and medium-sized enterprises and self-releasing artists.
