COncord is an advanced conversation to acquire music distributor, according to several sources close to the conversations.
The Los Angeles-based voice is a 10-year digital distributor who gives independent artists ownership of their works and retains a distribution fee. Nashville-based Concord has huge music release and recorded music catalogs that include the compositions of Rodgers & Hammerstein, classic music release company Boosey & Hawkes, and the catalog of Round Hill Music, which it bought in 2023 for $ 469 million.
Economic Terms are unknown but a report at Music business all over the world Requires the agreement to reach $ 50 million. The Hollywood reporter quotes sources such as saying that the figure “is wildly inaccurate” and that the negotiations can result in partial sales.
Vote would help Concord in his ambition to develop his frontline business. While Concord’s annual turnover is divided approx. 50-50 between its release and recorded music departments, it has noted several release hits, such as Miley Cyrus ‘Flowers’, which Concord owns a bit through Tyler Johnson’s co-writing credit. In September, Concord merged its Concord Records and Fantasy Records to a single label where he named Margi Cheske and Mark Williams as co-presidents.
Concord’s Frontline Record Label business includes Rounder Records, Concord Jazz, Fearless Records, Concord Theatrical Recordings and Kidz Bop franchise. CONCORD also has joint ventures in Loma Vista -recordings with Tom Whalley; Easy Eye Sound with Dan Auerbach; and Pulse Records with Pulse Music Group. In 2023, Pulse Records became a great success with Tommy Richman’s 2024 -hit “Million Dollar Baby.” Billboard Estimizes the song generated $ 4.99 million from on-demand sound currents and digital song sales, based on luminate data.
Stam, which raised $ 40 million in three fundraising -rounds from 2017 to 2022, has been looking for a strategic investor since at least last year to give it access to more funding for artist progress after losing a number of stars to larger brands. Competition for artists who sought distribution agreements had picked up enough for voice to “lost several offers historically as it was unable to be competitive with progress,” according to a tribal tire Billboard obtained in 2024.
In 2023, Voice secured a $ 250 million credit facility from Victory Park Capital to expand its Advance Check product, which has funded projects by Brent Faiyaz and Justine Skye. That credit line was “restrictive”, says a source with knowledge of the company Billboardbecause it was distributed on a agreed basis, which required each artist’s project to recover his own progress. Lewis says a better option is to borrow against the entire company’s balance, so if an artist’s project flops, the loan can be repaid by a successful.
“Music is a hit-driven business and you need to have capital that understands it and is willing to allow you to take the risk across multiple projects, knowing that the overall portfolio will perform,” this person says.
It was for this reason that Stem was looking for stock investors rather than debt. Outside investors, many from Venture Capital World, already own a majority of VEL’s equity. Vote’s decision to give artists in the future came at a time when interest rates were lower than they are today, and an industry source speculates that rising interest rates were an urgent question for voice. CONCORD would probably be able to give the voice a lower capital cost, says this source Billboard. Concord has raised more than $ 3 billion from three activated securities led by Apollo Global Management.
Warner Music Group (WMG) has also been in the market for a distribution company, after moving on to an opportunity to acquire Tunecore -owner believe in 2024. But talking at a Morgan Stanley conference Monday (March 11), WMG CEO Robert Kyncl suggested that the company could build rather than buy a distributor at the current rates. “I have looked at all distribution companies in the last 18 months … and what I can tell you is that we are not willing to grow this at all costs,” Kyncl said.