In October, AOL Time Warner said it would restate two years of financial results because of accounting practices at America Online that had inflated revenue by US$190 million. And last week, The Washington Post reported that the company has warned analysts to expect a write-down of at least US$10 billion for the America Online business.
The company took a US$54 billion charge after its first quarter last year in order to account for the decline in America Online's value.
AOL Time Warner's stock has recovered from a summer low of US$8.70, closing at US$14.88 Friday, but it's still far from trading above US$50, as it did just after the merger.
AOL Time Warner's businesses include movie studios Warner Brothers and New Line Cinema; Time magazine; TV channels HBO, CNN, and Cartoon Network; Time Warner Cable; record company Warner Music; and Internet service Compuserve.
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