In July 2006, Deseret Book decided that its wholesale division would no longer sell to Seagull because of "a difference of opinion about how we [Deseret Book] were treated from a merchandising standpoint".
On December 28, 2006, Deseret Book announced that it had completed the purchase of both Seagull and its sister company, Covenant Communications, Inc., creating a chain of 69 stores. The announcement indicated that the Seagull Book stores will continue to be operated as a separate chain, maintaining its position of selling books at a discount relative to Deseret Book.