Downtown Music has sold its Downtown Records recorded music division to the company's co-founders, Josh Deutsch and Terence Lam. This leaves Downtown's publishing division as its own, separate unit. In a statement, the company said the label and publishing divisions will each "further develop stand-alone platforms that can maximise opportunities for their respective artists, clients and shareholders alike."

Downtown Records' roster includes Gnarls Barkley, Cold War Kids, Santigold, Justice, Major Lazer and Miike Snow, among others.

According to Billboard.biz, all Downtown Records staffers will join Deutsch and Lam, while Downtown Music Publishing will continue to be headed up by its President Justin Kalifowitz, COO Andrew Bergman and CFO Daniel Lieblein.