Concord Acquires Stem Distribution, Plans Global Market Expansion
Concord has acquired Stem Disintermedia's distribution division and confirmed the spin-off of the Tone royalty platform. The acquisition specifically focuses on Stem Distribution, which will continue operating as a separate division under current CEO Milana Lewis and president Kristin Graziani.
Three people in business meeting
The deal maintains existing staffing and operations while aiming to accelerate Stem's global expansion. Concord CEO Bob Valentine emphasized the alignment between both companies' missions to provide artists with essential tools for career growth.
Key aspects of the acquisition:
- Stem's Tone royalty-management platform will become a standalone business with Concord as an investor
- The deal excludes Stem's Scale artist advances division
- Current staff positions are expected to remain unchanged
- Stem Distribution will maintain operational independence
While exact financial terms weren't disclosed, industry sources suggest the deal value ranges between $50-100 million. Concord reportedly outbid other interested parties, including Sony Music, for the acquisition.
"Milana and her team have spent a decade creating a company that provides immense value to both artists and labels," said Valentine. "Like Concord, their focus has always been giving artists the tools they need to realize their visions and grow their careers."
The Tone platform currently employs between 11-50 people, with some overlap between Stem's main operations. The specific arrangement for staff allocation between the separated entities remains to be clarified.