Universal Music to buy Branson's V2 Music Group

NEW YORK (Reuters) - Vivendi's Universal Music Group said on Friday it would buy entrepreneur Richard Branson's V2 Music Group in a deal that would add artists Paul Weller and Stereophonics to the Universal portfolio.

Financial terms were not disclosed. Branson owns a 5 percent stake after selling off about 95 percent to Morgan Stanley in 2006.

One source familiar with the matter said the purchase price was about 7 million pounds ($14 million).

A separate source said the purchase price was likely higher since rival bids ran as high as the mid-teens millions.

V2, founded in 1996, was Branson's second foray into the music industry he left after he sold Virgin Records to EMI Group in 1992.