His conflict with his brother Louis VI the Roman on the Bavarian heritage of Meinhard finally caused also the loss of Brandenburg by the Wittelsbach dynasty since Louis then made Charles IV his contracted heir. However, Stephen accepted his brother Otto, the last Wittelsbach regent of Brandenburg, as his nominal co-regent when he returned to Bavaria in 1373. Due to the loss of Brandenburg the Bavarian dukes received a financial compensation one more time. Stephen was succeeded by his three sons.