Concord to Acquire Stem for Over $100 Million as Deal Nears Completion
Concord Music is set to acquire Stem Disintermedia for over $100 million, according to industry sources. This price tag is more than double the initially reported $50 million figure, with the deal reportedly in its final stages.
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Photo Credit: RDNE
Key Deal Points:
- Multiple parties showed interest, including Sony Music Entertainment
- The Raine Group and Fred Davis are key dealmakers
- This appears to be a complete acquisition, not just a stake purchase
Financial Context:
- Stem has raised $42.5 million since 2015
- Company secured a $250 million credit facility last year
- Return on investment may be modest given the extensive investor list
Notable investors include:
- Evolution Media
- Aspect Ventures WndrCo
- Upfront Ventures
- Block
- Slow Ventures
- QED Investors
Current Market Challenges:
- Rising interest rates affecting artist financing terms
- Increased competition for high-performing talent
- Tighter lending standards impacting deal structures
Warner Music Group's role remains unclear, with CEO Robert Kyncl publicly dismissing interest in acquiring independent distributors, despite rumors of their involvement in bidding.
Stem continues normal operations, with Director of Artist & Label Strategy Kylie Everitt recently participating in industry panels at Musexpo in Burbank.
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