The record division reported that fourth-quarter operating profits rose 11 percent, to $141 million, from last year's $127 million.

The senior management of the record division was also strongly in favor of the deal, the source said.

A lawyer by training, he joined the company in 1961 and worked his way up to become president of its record division.

He also considered spinning off the record division into a separately held company before the stock market collapse last month.

But that goal has run into an unexpected hurdle at Sony's record division.

Disney will create a record division that it hopes will become a force in popular music.

Sony has an offer pending to buy the record division for $2 billion.

And he added: "The board has not approved the sale of the record division.

Operating income at the record division dropped to $137 million, from $149 million a year earlier.

The record division reported $65.6 million in operating income, a 51 percent inprovement.