Universal’s Sanctuary Bid Details And Motives Emerge

It turns out that Universal’s reported $88 million bid for Sanctuary was really a $205 million bid when
assumption of debt is factored in.

But that didn’t keep Universal Music Group head Doug Morris for expressing how excited he is to be getting into the talent business.  "The Sanctuary business will be a good strategic fit for us," UMG Chairman and CEO Doug Morris said in a statement. "We have a great opportunity to strengthen and advance Sanctuary’s position as a significant player in artist management, agency and
merchandising, as consumers’ appetite for music grows worldwide."

After all the record business sucks and in addition to a falling record company, Sanctuary is also a talent agency and management firm whose clients include James Blunt, The Who, Robert Plant, ZZ Top, Slipknot, Fleetwood Mac and Elton John. 

Less than 50 years ago the FTC told MCA (which became Universal) that
it was unlawful to be in both the agency and record business and forced
divestiture. Now labels are must diversify or die.

But don’t count your commissions Doug.  Crosby Capital and WMG are still seriously considering bids.