As anticipated, Concord has fully acquired Stem, a music distribution network based in Los Angeles. Earlier this month, as per MBW, Concord was purchasing the distribution platform, implying a high eight-figure purchase worth at least $50 million. In addition to purchasing Stem, Concord is also investing in Tone, a platform for financial tools and royalty accounting that was introduced by Stem’s management team in 2023, according to the acquisition’s formal announcement today, March 24.
Tone is being spun off and will continue to function as a separate, independent company. The Concord Label Group will now run Stem as a “separate division.” Stem, a Concord company, will be run by its current president, Kristin Graziani, and CEO, Milana Lewis.
Stem is described by Concord as a “platform designed by musicians for musicians, providing personalized distribution, digital strategy, data-driven insights, playlisting, and more for independent artists and labels”.
Concord said today that Stem has a “proven track record of identifying and nurturing the careers of artists at all levels”. The company also said today that its ownership of Stem will afford the platform “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”. Concord added in its announcement that “Stem will now have the ability to tap into Concord’s significant operational and financial resources, equipping clients with the freedom and autonomy which are at the core of its mission.”
Tom Becci, Chief Executive of Concord Label Group, said, “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 stated, “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 am excited to welcome the Stem team to Concord and look forward to witnessing our collective success.”
Stem founder and CEO Milana Lewis, said, “From day one, Stem has been hellbent in its mission to provide artists and their teams true autonomy. 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, Stem President, said, “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.”
According to the companies, the purchase is not expected to have an impact on present operations or workforce. No financial information was revealed. Reed Smith served as Concord’s outside counsel, and KPMG provided the tax advice.
Stem confirmed that its representation in the transaction was led by Raine Group, plus “a stand-out team of female counsel: Rachel Totten and Natalie Martirossian from Goodwin Procter, Sarah Graham from Gibson-Dunn and Laxmi Vijaysankar at Serling Rooks Hunter McKoy Worob & Averill”.
