Universal Music Group to buy Sanctuary for $88 million
Vivendi’s Universal Music Group said Friday that it had agreed to buy Sanctuary Group for $88 million to add merchandising and management of artists including Elton John.
Universal Music’s Centenary Music Holdings Ltd. will pay about 39 cents a share in cash for Sanctuary.
That’s 13% more than Thursday’s closing price for London-based Sanctuary.
The deal broadens Universal Music’s scope, adding merchandising, artist management and talent businesses, as the company looks for new revenue streams.
Sanctuary, whose shares slumped 97% in 2006, ousted Chief Executive Andy Taylor last year because of adjustments made in the 2005 accounts. Sanctuary has posted losses the last three years.
“The Sanctuary business will be a good strategic fit for us,” Universal Music Chief Executive Doug Morris said in a statement.
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