Durham's influential music label Merge Records sells 50% stake in company
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Laura Ballance, left, and Mac McCaughan are the co-founders of Durham music label Merge Records. Photo: Dave Pedley/Getty Images for SXSW
Merge Records, a Durham music label that has become influential in the independent music scene over the past 35 years, has sold a 50% stake in the company — a move that the label hopes will provide more distribution resources for its artists.
Why it matters: Founded by Mac McCaughan and Laura Ballance as a way to release the music of their own band, Superchunk, Merge has become a powerhouse in the industry, putting out records by bands like Arcade Fire, Spoon, Neutral Milk Hotel and the Magnetic Fields.
- It's also an important incubator of the Triangle's own music scene, bringing its artists through the area's venues and giving local bands like Hiss Golden Messenger, Rosali and H.C. McEntire a launchpad to new audiences.
Driving the news: On Tuesday, Merge announced it had sold a 50% stake in the company to Indiana-based Secretly Group, which owns several other record labels, like Dead Oceans, Jagjaguwar and Secretly Canadian.
Zoom in: Merge will continue to operate as a standalone label in Durham as part of the deal, with McCaughan continuing to serve as label president and head of A&R (Artist & Repertoire).
- Ballance, however, will be leaving the music business following the deal.
- In a statement, Secretly co-founder Phil Waldorf said his group reached out to Merge about a new partnership when it first heard Ballance was looking to leave the business.
What they're saying: "It was never my goal to start a record label when I was 21 and run it for the rest of my life," Ballance said in a statement, noting she has other creative endeavors she would like to pursue.
- "Merge Records started as a literal bedroom label, in my bedroom, and lived there for a few years before we were able to give it some space of its own," she added. "It has always been a labor of love. I am going to miss it and all the people and bands tremendously."
Between the lines: The deal gives Merge access to Secretly's worldwide distribution networks as well as access to more resources for operations like accounting, artist royalties, business affairs, licensing, IT and HR.
- Representatives for Merge were not immediately available for an interview, but last year McCaughan told Axios running a music label has become even more complex in the era of streaming.
- "What's still great about having a record label is the artists that we get to work with and hearing someone's new album when it's finished," McCaughan said last year.
- "But, you know, the business of trying to get those bands heard by the most people and trying to sell records enough so that those artists can make a living or even just break even on tour has become really frustrating," he added.