Several trade publications report that Concord is in advanced acquisition talks with Stem, though reported details vary significantly. While The Hollywood Reporter (THR) indicates unknown financial terms, Music Business Worldwide suggests a $50 million deal - a figure sources tell THR is "wildly inaccurate."

Stem, a Los Angeles-based digital distributor, provides indie artists ownership of their works while charging distribution fees. Nashville-based Concord manages an extensive music catalog and publishing business, including Boosey & Hawkes and recently acquired Round Hill Music for over $450 million in 2023.

After raising $40 million between 2017-2022, Stem has been seeking strategic investors for artist advances. A 2024 pitch deck reveals Stem "lost numerous deals historically as it wasn't able to be competitive with advances." Though Stem secured a $250 million credit facility from Victory Park Capital in 2023, the terms were reportedly restrictive, requiring individual project recoupment.

Stem now prefers equity investors over additional debt. Concord appears well-positioned, having raised over $3 billion from asset-backed securities through Apollo Global Management. The bidding has been competitive, with Sony Music and Warner Music Group also showing interest.

Industry insiders note distribution's growing importance, with one source stating, "No one's doing the sort of deals anymore where the rights owner owns your master. Distribution is king in the race to be the fourth major."

Warner Music Group previously showed interest in acquiring Believe (TuneCore's parent company) but later withdrew, with CEO Robert Kyncl indicating plans to develop their own distribution platform instead.

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