Concord, as anticipated, has successfully acquired a music distribution platform based in Los Angeles.
Earlier this month, MBW sources reported that Agreement purchased a distribution platform for over high Eight digital dollars, estimated to be above 50 million dollars.
The formal announcement regarding the acquisition was made today (March 24), indicating that STEM is also acquiring Agreement, which is making further investments in the Tone platform, focusing on royalties and financial tools initiated by the STEM management team in 2023.
Tone will operate independently as an autonomous business moving forward.
STEM will now function as a “separate division” within the Group of Libra of Coordination field.
As a subsidiary of Concord, Root will be led by the current general director, Milana Lewis, and president, Christine Graziani.
Root is described by Agreement as “a platform created by musicians for musicians, offering personalized distribution, digital strategy, data control, playlist insights, and more for independent artists and labels.”
The companies assure that personnel and operations will remain unaffected by the transaction. Financial specifics were not revealed.
Concord was advised by external counsel Reed Smith, with tax consultancy from KPMG.
Root confirmed that its representation in the transaction was led by the Raine Group, alongside a “remarkable team of women advocates: Rachel Totten and Natalie Martirossian from Goodwin Procter, Sarah Graham from Gibson, Dunn & Crutcher, and Laxmi Vidzankar from Serling Rooks Hunter McKoy World & Averill.”
Strategic Growth and Artist Support
Agreement stated today that Root has a “proven track record of talent identification and artist career development at all levels.”
The company also noted that owning Root will enable the platform to gain “capital and resources for investing in new technologies, creating essential infrastructure to enhance its already robust service offerings to labels and accelerate STEM’s global expansion.”
On Monday, Concord noted: “Now STEM will leverage Concord’s significant operational and financial resources, providing clients with the independence and autonomy that are central to its mission.”
Photo is kindly provided by Concord
“The success of the Indie community is vital for long-term growth and health of the music industry.”
Tom Bekchi, Concord
Tom Bekchi, the Chief Executive Officer of Concord Label Group, stated: “The success of the indie community is essential for the sustained growth and vitality of the music industry.
“Our investment in STEM will provide them with the necessary tools to deliver top-notch services worldwide, as we further modernize the music landscape. Our commitment to supporting independent artists and entrepreneurs has never been more evident.”
“Milan and her team spent a decade creating a company that offers tremendous value for both artists and labels.”
Bob Valentine, Concord
Concord General Director Bob Valentine remarked: “Milan and her team dedicated ten years to building a company that delivers significant value to both artists and labels. Like Concord, their focus has always been on equipping artists with the tools they need to achieve their visions and develop their careers.
“I’m excited to welcome the STEM team to Concord and eager to see the tangible results of our collective success.”
“From day one, STEM has been relentless in its mission to empower artists and their teams with genuine autonomy.”
Milana Lewis, STEM
Founder and CEO of STEM, Milana Lewis, stated: “From the very first day, STEM has been unwavering in its mission to provide artists and their teams with true independence.
“We have created a platform that continually identifies and elevates the hottest artists globally, combining the right components—discerning taste, advanced financial tools, seamless distribution, customized marketing strategies, and high-quality creative services.
“Now, with Concord’s support, we gain additional fuel for our engine and a global team that will help us scale. This is not an exit—it’s an expansion. We are raising the bar for independent artists and proving what’s possible when they receive the right support.”
“Bob, Tom, Vic, and the Concord team have built an incredibly impressive, resilient business across multiple facets of the industry, and we are honored to be their chosen partner as they enter the fast-growing and in-demand distribution space.”
Christine Graziani, STEM
Christine Graziani, President of STEM, expressed: “STEM and Concord are dedicated partners for independent artists.
“Bob, Tom, Vic, and the Concord team have established an incredibly impressive, strong business across various aspects of the industry, and it is a privilege for us to be their chosen partner as they venture into the rapidly growing and sought-after distribution segment.
“We are confident that CONCORD’s comprehensive global label services and strategic oversight across the recorded music landscape will immediately enhance STEM’s offerings, enabling us to continue fulfilling our commitment to empower independent artists and labels.”
In 2023, STEM secured a credit line of 250 million USD from its Chicago headquarters.
Last year, STEM successfully raised $20 million in a funding round led by QED Investors, a venture capital firm within the Fintech sector.
The official announcement concerning Concord’s acquisition of STEM comes about four months after the company finalized a deal involving asset-backed securities (ABS), where it raised 850 million dollars in debt financing through private securitization, secured by its catalog of music rights.
Agreement noted in October that this ABS transaction would “stimulate strategic growth and acquisition,” emphasizing its ongoing efforts to strategically cultivate and monetize its music assets and establish the company as a driving force in the music industry.
Agreement collaborates with over 125,000 artists and songwriters.
The company claims its catalog of 1.3 million songs, compositions, sound recordings, films, plays, and musicals is one of the most effective and culturally significant collections of creative rights in history.
Agreement is headquartered in Nashville, with additional offices in Los Angeles, New York, London, Berlin, Melbourne, and Miami.
CONCORD Label Group, where STEM will operate as a separate unit, includes seven premiere labels, such as Concord Records, Rounder Records, Fearless Records, Loma Vista Recordings, Pulse Records, Secretly Canadian, and Craft Recordings, which oversees “legendary” catalog labels such as Stax, Fania, Prestige, Telarc, and Varese Sarabande, among others.
Lucas focuses on the interaction between music and society. He specializes in how music influences and reflects cultures, analyzing the role of sound in social, political, and cultural events around the world.
