Concord's Stem Acquisition Price Surges Past $100 Million, Industry Sources Reveal
According to industry sources, Concord Music is set to acquire Stem Disintermedia for over $100 million, more than double the initially reported $50 million figure. This appears to be a finalized transaction, though official announcements are pending.
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The deal, orchestrated by The Raine Group and Fred Davis, comes after multiple interested parties, including Sony Music Entertainment, participated in relatively modest bidding competition. Stem's co-founder and CEO, Milana Lewis, has been credited for orchestrating the successful exit.
Financial Context:
- Stem has raised approximately $42.5 million since 2015
- Secured an additional $250 million credit facility last year
- Investor list includes Evolution Media, Aspect Ventures, WndrCo, Upfront Ventures, Block, Slow Ventures, and QED Investors
Current Market Challenges:
- Rising interest rates affecting artist financing terms
- Increased competition for high-performing talent
- Tighter lending standards impacting artist deals
Recent Industry Developments:
- Warner Music Group (WMG) acquired RSDL.io through ADA
- WMG CEO Robert Kyncl previously expressed preference for building rather than buying distributors
- Business operations at Stem continue as usual, with recent participation in industry panels
Despite the nine-figure price tag, the deal represents a modest return for investors given the company's substantial funding history. The acquisition comes at a time when independent distributors face increasing pressure from rising interest rates and competitive talent acquisition costs.
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