Concord has, as expected, fully acquired Los Angeles-based music distribution platform Stem.
MBW’s sources told us earlier this month that Concord was buying the distribution platform, suggesting a high eight-figure dollar deal somewhere above $50 million.
The official announcement of the acquisition today (March 24) reveals that as well as buying Stem, Concord is making an additional investment into Tone, a royalty accounting and financial tools platform launched by Stem’s management team in 2023.
Tone is being spun off and will operate as an independent/standalone business going forward.
Stem itself will now operate as a “separate division” within Concord Label Group.
As a subsidiary of Concord, Stem will be led by its existing CEO, Milana Lewis, and President, Kristin Graziani.
Stem is described by Concord as a “platform designed by musicians for musicians, providing personalized distribution, digital strategy, data-driven insights, playlisting, and more for independent artists and labels”.
The companies said that current staffing and operations are not anticipated to be affected by the deal. Financial details were not disclosed.
Concord’s outside counsel was provided by Reed Smith with tax advisory by KPMG.
Stem confirmed that its representation in the transaction was led by Raine Group, plus “a stand-out team of female counsel: Rachel Totten and Natalie Martirossian from Goodwin Procter, Sarah Graham from Gibson-Dunn and Laxmi Vijaysankar at Serling Rooks Hunter McKoy Worob & Averill”.
Concord said today that Stem has a “proven track record of identifying and nurturing the careers of artists at all levels”.
The company also said today that its ownership of Stem will afford the platform “the capital and resources to invest in new technology and build the necessary infrastructure to expand upon its already robust suite of label services and accelerate Stem’s global expansion”.
Concord added in its announcement on Monday: “Stem will now have the ability to tap into Concord’s significant operational and financial resources, equipping clients with the freedom and autonomy which are at the core of its mission.”
Photo courtesy of Concord
“The success of the indie community is vital to the long-term growth and health of the music industry.”
Tom Becci, Concord Label Group
Tom Becci, Chief Executive of Concord Label Group, said: “The success of the indie community is vital to the long-term growth and health of the music industry.
“Our investment in Stem will equip them with the tools necessary to deliver first-class service across the globe while further modernizing the indie music landscape. Our focus on bolstering independent artists and entrepreneurs has never been clearer.”
“Milana and her team have spent a decade creating a company that provides immense value to both artists and labels.”
Concord CEO Bob Valentine added: “Milana and her team have spent a decade creating a company that provides immense value to both artists and labels. Like Concord, their focus has always been giving artists the tools they need to realize their visions and grow their careers.
“I am excited to welcome the Stem team to Concord and look forward to witnessing our collective success.”
“From day one, Stem has been hellbent in its mission to provide artists and their teams true autonomy.”
Milana Lewis, Stem
Stem founder and CEO Milana Lewis, said: “From day one, Stem has been hellbent in its mission to provide artists and their teams true autonomy.
“We’ve built a platform that has consistently launched the hottest artists in the world by assembling the right components—discerning taste, cutting-edge financial tools, seamless distribution, bespoke marketing strategies and high-touch creative services.
“Now, with Concord’s backing, we gain more fuel for the engine and a global team to help us scale. This isn’t an exit—it’s an expansion. We’re doubling down on raising the standard for independent artists and proving what’s possible when they have the right support behind them.”
“Bob, Tom, Vic, and the Concord team have built an incredibly impressive, durable business across multiple facets of the industry and we are honored to be their selected partner as they enter the rapidly growing and sought-after distribution space.”
Kristin Graziani, Stem
Kristin Graziani, Stem President, said: “Stem and Concord both serve as trusted and successful partners to independent artists.
“Bob, Tom, Vic, and the Concord team have built an incredibly impressive, durable business across multiple facets of the industry and we are honored to be their selected partner as they enter the rapidly growing and sought-after distribution space.
“We know Concord’s capital, comprehensive global label services and strategic expertise across recorded music will immediately strengthen Stem’s offering, while allowing us to continue to deliver on our promise of empowering independent artists and labels.”
The previous year, Stem raised $20 million in a funding round led by QED Investors, a venture capitalist firm in the fintech space.
Official news of Stem’s acquisition by Concord arrives around four months after the latter company successfully closed an Asset-Backed Securities (ABS) transaction, which saw it raise $850 million in debt financing through a private securitization backed by its catalog of music rights.
Concord said in October that this ABS transaction would “fuel strategic growth and acquisition[s]” that underscored its “ongoing effort to strategically grow and monetize its music assets and position the company as a consequential force in the music industry”.
Concord works with more than 125,000artists and songwriters.
The company claims that its catalog of 1.3 million songs, compositions, sound recordings, films, plays, and musicals “is one of the most impactful and culturally relevant collections of creative rights in history”.
Concord is headquartered in Nashville with additional offices in Los Angeles, New York, London, Berlin, Melbourne, and Miami.
Concord Label Group, in which Stem will continue to operate as a separate division, runs seven frontline labels including Concord Records, Easy Eye Sound, Fearless Records, Loma Vista Recordings, PULSE Records, Rounder Records, Concord Theatricals Recordings, and Craft Recordings which manages “legendary” catalog labels such as Stax, Fania, Prestige, Telarc, and Varèse Sarabandeamong others. Music Business Worldwide
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