Concord in Advanced Talks to Acquire Stem, Though Deal Terms Remain Unclear
Trade publications report that Concord is in advanced acquisition talks with Stem, though reported details vary significantly. While The Hollywood Reporter (THR) indicates unknown financial terms, Music Business Worldwide suggests a $50 million deal—a figure some sources call "wildly inaccurate."
Stem logo on black
Los Angeles-based Stem provides digital distribution services to independent artists, maintaining artist ownership while collecting distribution fees. Nashville-based Concord manages an extensive music catalog, including Boosey & Hawkes and the recently acquired Round Hill Music catalog. Concord's annual revenue is equally split between publishing and recorded music.
Stem has raised $40 million through fundraising (2017-2022) and secured a $250 million credit facility from Victory Park Capital in 2023. However, the credit line's restrictive terms require individual project recoupment, leading Stem to seek equity investors instead of additional debt.
The acquisition interest in Stem has been competitive, with potential buyers including Sony Music, Warner Music Group, and Concord. Industry insiders note that distribution has become crucial in the music industry, with one source stating, "Distribution is king in the race to be the fourth major."
This development follows Warner Music Group's previous interest in acquiring Believe (TuneCore's parent company), though WMG ultimately decided to focus on building its own distribution platform, as confirmed by CEO Robert Kyncl at a recent Morgan Stanley conference.
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