Sony Broadband was created in March as a new holding company to house Sony's US entertainment assets, its movie studio and music group, and to get the most out of new forms of distribution such as the Internet, wireless and digital cable.

Sony is beefing up its broadband entertainment efforts as the entertainment industry is being reshaped by Internet mergers. Last week, Seagram Co, parent of Universal Studios and Universal Music, agreed to be acquired by Vivendi SA, while Time Warner Inc. agreed earlier this year to merge with America Online Inc.

Both pending deals, designed to help the entertainment firms distribute offerings on the Web, put pressure on Sony to get more scale and diversity in its businesses, said a person familiar with the situation. Indeed, Sony executives talked with Seagram's chief executive officer, Edgar Bronfman Jr, before Bronfman struck his deal with Vivendi, according to people familiar with the talks. The two companies didn't get very far in the discussions, partly because Sony wasn't willing to guarantee Bronfman a senior job in the merged company. Neither Sony nor Seagram would comment.

Wiesenthal's main task will be to come up with a strategy and to pursue deals for Sony Broadband, such as joint ventures, acquisitions or partnerships, sources said.

-- (The Wall Street Journal)