Concord in Advanced Talks to Acquire Stem, But Deal Value Remains Contested
Multiple industry sources report that Concord is in advanced acquisition talks with digital music distributor Stem, though reported details vary significantly between publications.
Stem logo on black
While The Hollywood Reporter indicates financial terms are unknown, Music Business Worldwide suggests a $50 million deal, though some sources call this figure "wildly inaccurate."
Los Angeles-based Stem provides digital distribution services to independent artists, allowing them to maintain ownership while paying distribution fees. Concord, headquartered in Nashville, manages a substantial music catalog and publishing business, including Boosey & Hawkes and the recently acquired Round Hill Music catalog.
Stem's current situation:
- Raised $40 million between 2017-2022
- Secured $250 million credit facility from Victory Park Capital in 2023
- Seeking equity investors due to restrictive credit terms
- Struggling to compete with advance offerings to artists
Concord appears well-positioned as a potential buyer, having raised over $3 billion from asset-backed securities through Apollo Global Management. The acquisition has reportedly attracted competitive interest from major players including Sony Music and Warner Music Group.
Industry insiders suggest this potential acquisition reflects a broader shift in the music industry, with one source noting, "Distribution is king in the race to be the fourth major." This follows Warner Music Group's recent interest in acquiring Believe (TuneCore's parent company), though WMG ultimately decided to pursue building its own distribution platform.