NEW YORK, Aug 10 (Reuters) - Vivendi's (VIV.PA: Quote, Profile , Research) 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 (EMI.L: Quote, Profile , Research) in 1992.