Why Sony Music Hit Sour Notes In Tokyo

The $923 million initial public offering by Sony Music Entertainment Inc. ought to have been an attractive deal for investors. The country's top distributor of Japanese music software has an unrivaled stable of Japanese pop artists, not to mention Michael Jackson. An industry leader, the unit of electronics giant Sony Corp. has been a pioneer in such lucrative fields as compact-disk stamping and sales. Its healthy profit margins are above 15%.

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