Concord Music to Acquire Stem for Over $100 Million, Sources Confirm
Concord Music is reportedly acquiring Stem Disintermedia for over $100 million, more than double the initial estimates, according to industry sources. The deal is reportedly in its final stages.
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The acquisition, led by Stem's co-founder and CEO Milana Lewis, attracted multiple interested parties, including Sony Music Entertainment. The Raine Group and Fred Davis are key dealmakers in the transaction.
Key Deal Points:
- Stem has raised $42.5 million in funding since 2015
- Company secured an additional $250 million credit facility last year
- Notable investors include Evolution Media, Aspect Ventures, WndrCo, and Upfront Ventures
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 in the bidding process remains unclear, especially after CEO Robert Kyncl's recent statements preferring to build rather than acquire independent distributors. However, WMG's subsequent acquisition of RSDL.io through ADA suggests continued interest in the distribution space.
Stem continues normal operations during the acquisition process, with company executives recently participating in industry panels at Musexpo in Burbank, discussing independent distribution strategies.
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