Concord Acquires Stem Distribution
• Concord, the world’s leading independent music company, has added Stem Distribution to its portfolio of subsidiaries. Stem, the platform designed by musicians for musicians, providing personalized distribution, digital strategy, data-driven insights, playlisting, and more for independent artists and labels, will continue to be operated as a separate division within Concord Label Group, led by its existing Founder & CEO Milana Lewis and President Kristin Graziani.
Terms of the transaction were not disclosed, but sources close to the situation tell Variety the deal was in the $90 million range, significantly higher than the $50 million price rumored earlier.
From new and emerging talent to some of the industry’s biggest stars, Stem has a proven track record of identifying and nurturing the careers of artists at all levels. Concord’s ownership will afford Stem the capital and resources to invest in new technology and build the necessary infrastructure to expand upon its already robust suite of label services and accelerate Stem’s global expansion. Stem will now have the ability to tap into the significant operational and financial resources of Concord, equipping clients with the freedom and autonomy which are at the core of its mission. Current staffing and operations are not anticipated to be affected by the deal.
Tom Becci, Chief Executive of Concord Label Group, commented, “The success of the indie community is vital to the long-term growth and health of the music industry. Our investment in Stem will equip them with the tools necessary to deliver first-class service across the globe while further modernizing the indie music landscape. Our focus on bolstering independent artists and entrepreneurs has never been clearer.”
Concord CEO Bob Valentine added, “Milana and her team have spent a decade creating a company that provides immense value to both artists and labels. Like Concord, their focus has always been giving artists the tools they need to realize their visions and grow their careers. I’m excited to welcome the Stem team to Concord and look forward to witnessing our collective success.”
“From day one, Stem has been hellbent in its mission to provide artists and their teams true autonomy,” said Milana Lewis. “We’ve built a platform that has consistently launched the hottest artists in the world by assembling the right components — discerning taste, cutting-edge financial tools, seamless distribution, bespoke marketing strategies and high-touch creative services. Now, with Concord’s backing, we gain more fuel for the engine and a global team to help us scale. This isn’t an exit — it’s an expansion. We’re doubling down on raising the standard for independent artists and proving what’s possible when they have the right support behind them.”
Kristin Graziani added, “Stem and Concord both serve as trusted and successful partners to independent artists. Bob, Tom, Vic, and the Concord team have built an incredibly impressive, durable business across multiple facets of the industry and we are honored to be their selected partner as they enter the rapidly growing and sought-after distribution space. We know Concord’s capital, comprehensive global label services and strategic expertise across recorded music will immediately strengthen Stem’s offering, while allowing us to continue to deliver on our promise of empowering independent artists and labels.”
As part of this transaction, Tone, the business platform devoted to royalty accounting and other modern financial tools for record labels under Stem ownership, is being spun off and will be a stand-alone business going forward with Concord as one of its investors.
Pictured, (l-r): Milana Lewis, Tom Becci, & Kristin Graziani [Photo credit: Erica Hernandez]
