The official announcement of the acquisition today (March 24) reveals that as well as buying Stem, Concord<\/strong> is making an additional investment into Tone,<\/strong> a royalty accounting and financial tools platform launched by Stem’s management team in 2023.<\/p>\n Tone<\/strong> is being spun off and will operate as an independent\/standalone business going forward.<\/p>\n Stem itself will now operate as a “separate division” within Concord Label Group<\/strong>.<\/p>\n As a subsidiary of Concord, Stem<\/strong> will be led by its existing CEO, Milana Lewis<\/strong>, and President, Kristin Graziani. <\/strong><\/p>\n Stem<\/strong> is described by Concord<\/strong> as a “platform designed by musicians for musicians, providing personalized distribution, digital strategy, data-driven insights, playlisting, and more for independent artists and labels”.<\/p>\n The companies said that current staffing and operations are not anticipated to be affected by the deal. Financial details were not disclosed.<\/p>\n Concord\u2019s<\/strong> outside counsel was provided by Reed Smith<\/strong> with tax advisory by KPMG<\/strong>.<\/p>\n Stem<\/strong> 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”.<\/p>\n Concord<\/strong> said today that Stem<\/strong> has a “proven track record of identifying and nurturing the careers of artists at all levels”.<\/p>\n The company also said today that its ownership of Stem<\/strong> 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\u2019s global expansion”.<\/p>\n Concord added in its announcement on Monday: “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.”<\/p>\n \u201cThe success of the indie community is vital to the long-term growth and health of the music industry.”<\/p>\n Tom Becci, Concord Label Group<\/span><\/p><\/blockquote>\n Tom Becci,<\/strong> Chief Executive of Concord Label Group, said: \u201cThe success of the indie community is vital to the long-term growth and health of the music industry.<\/p>\n “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.”<\/p>\n \u201cMilana and her team have spent a decade creating a company that provides immense value to both artists and labels.”<\/p>\n Bob Valentine, Concord<\/span><\/p><\/blockquote>\n Concord CEO Bob Valentine<\/strong> added: \u201cMilana 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.<\/p>\n “I am excited to welcome the Stem team to Concord and look forward to witnessing our collective success.\u201d<\/p>\n \u201cFrom day one, Stem has been hellbent in its mission to provide artists and their teams true autonomy.”<\/p>\n Milana Lewis, Stem<\/span><\/p><\/blockquote>\n Stem founder and CEO Milana Lewis<\/strong>, said: \u201cFrom day one, Stem has been hellbent in its mission to provide artists and their teams true autonomy.<\/p>\n “We\u2019ve built a platform that has consistently launched the hottest artists in the world by assembling the right components\u2014discerning taste, cutting-edge financial tools, seamless distribution, bespoke marketing strategies and high-touch creative services.<\/p>\n \u201cNow, with Concord\u2019s backing, we gain more fuel for the engine and a global team to help us scale. This isn\u2019t an exit\u2014it\u2019s an expansion. We\u2019re doubling down on raising the standard for independent artists and proving what\u2019s possible when they have the right support behind them.\u201d<\/p>\n “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.”<\/p>\n Kristin Graziani, Stem<\/span><\/p><\/blockquote>\n Kristin Graziani<\/strong>, Stem President, said: \u201cStem and Concord both serve as trusted and successful partners to independent artists.<\/p>\n “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.<\/p>\n “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.”<\/p>\n Stem secured a $250 million credit facility<\/a> from Chicago-headquartered Victory Park Capital in 2023.<\/p>\n The previous year, Stem raised $20 million<\/a> in a funding round led by QED Investors, a venture capitalist firm in the fintech space.<\/p>\n![\"Tom](\"https:\/\/www.musicbusinessworldwide.com\/files\/2023\/08\/TBecci-HS2a-fotor-bg-remover-2023080943746-80x47.jpg "\\"Tom")
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