Relativity Acquires Stake in Downtown Records

Strategic Investment Will Fuel Downtown’s Growth and Increase Relativity’s Content Production.

(Beverly Hills, Calif. and New York, NY  March 26, 2014) – Relativity, a next-generation media company, today announced that the company has acquired a stake in Downtown Records, the music industry’s leading independent record company.  Relativity’s capital injection will help Downtown, which has a catalog of over 5,000 songs and is home to artists such as Gnarls Barkley, Miike Snow, Santigold, Cold War Kids and Mos Def, continue its rapid growth through the acquisition and marketing of new catalogs and artists.  Terms of the deal were not disclosed. This investment represents the latest in a series of strategic partnerships Relativity has struck with media and entertainment-related companies, and continues Relativity’s evolution as a fully diversified global media company. The partnership also increases Relativity’s content production capabilities across multiple platforms and builds off the success of Relativity Music, which provides music supervision, music publishing catalogues and soundtrack services for films from Relativity and other major Hollywood studios. Happy Walters, chief operating officer of Relativity, will oversee the investment for the company. Ryan Kavanaugh, founder and CEO of Relativity, said: “Relativity is a content engine that has the unique ability to help other entertainment companies reach the next level.  In just eight years, Josh Deutsch and Terence Lam have built a cutting edge music business, and we are excited to provide new opportunities for their incredible talent as Relativity continues to grow.” In addition to music, Relativity’s growing divisions include Relativity Studios, a full-scale film studio that has produced, distributed or structured financing for nearly 200 motion pictures, generating more than $17 billion in worldwide box office revenue;  Relativity Television, which has over 20 series on-air; Relativity Sports, which represents more than 300 professional athletes; M3/Relativity, which represents clients across fashion, beauty, style and creative design; and Relativity Digital Studios, which creates original digital content.  Downtown and Relativity’s divisions will work closely together to leverage each other’s properties.Josh Deutsch, Downtown Records’ Chairman and CEO, said: “Since 2006, Downtown Records has been dedicated to discovering and breaking today’s most exciting artists. Relativity is the ideal partner to fuel Downtown Records’ continued growth.  Leveraging Relativity’s broad platform, Downtown will generate innovative new opportunities for artists, composers and music fans alike. We are excited to work with Ryan, Happy, Tucker and the entire Relativity team to grow Downtown Records’ recorded music, music publishing and live events divisions and to contribute our premium content and music services to Relativity’s global media business.” Deutsch has been responsible for over 25 million albums sold throughout his career at companies including Virgin Records, Elektra Entertainment and Capital Records, discovering and overseeing the recording careers of artists including Gnarls Barkley, Cold War Kids, Jason Mraz, Justice, Santigold, Jet, Lenny Kravitz, Third Eye Blind and Miike Snow, among many others.

Terence Lam is Downtown Records’ Co-Chairman and oversees the company’s operations.  A veteran of the music business, Lam got his start at Arista Records and has worked for Sony Music Entertainment, Geffen Music, and MTV Networks.