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Time Warner charged with fraud over online ads







Time Warner charged with fraud over
online ads

Time Warner charged with fraud over
online ads
03/22/2005 07:09 PM

ZDNet Australia Mar 22 2005 10:55PM GMT




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Time Warner charged with fraud over online ads

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Time Warner Inc. has launched an internal investigation to determine whether America Online improperly accounted for losses at its European division before and after the AOL-Time Warner merger in 2001, the media giant disclosed yesterday. During the period in question, AOL Europe posted significant losses that Dulles-based America Online did not incorporate in its own financial results, according to public filings. Time Warner said it may have to restate earnings as a result of its review.

The bookkeeping under scrutiny involved the sale of a small stake in AOL Europe to Goldman Sachs Group, which temporarily reduced AOL's ownership in AOL Europe to below 50 percent, according to a recent article in Business Week. Since it was no longer a majority stockholder, AOL reported AOL Europe's results separately from its own. The maneuvers may have helped AOL keep its earnings and stock price up prior to its January 2001 merger with Time Warner, the article said. AOL eventually repurchased the stake from Goldman to again become the majority shareholder.

News source: Yahoo! News

Read full story...

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A year and a half ago Time Warner (or AOL Time Warner, at the time) ditched their relationship with TiVo to work on their own TiVo killer. The idea, called MystroTV, was that all of the functionality would be handled at the datacenter, but those using digital cable could watch any show from the previous two weeks of programming at any time. Of course, there were a number of folks in the broadcasting industry who didn't want that to happen and put some pressure on Time Warner. Also, there were some huge technology hurdles to overcome. As a replacement for that, it appears that Time Warner's cable division is about to start testing a greatly slimmed down version of this technology that will let users "start over" any show that they turn on in the middle. There aren't many details, but the idea is that as you turn on the TV, if it's already in the middle of a program, you can simply hit the "start over" button, and the show will pick up from the beginning. Again, there are some technical challenges to this (and it may still raise questions from content companies, of which Time Warner has a division who might not be happy as well). It also seems like a fairly weak response to a typical DVR which gives you much more functionality.

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Time Warner Auditing AOL
(washingtonpost.com)


Time Warner Auditing AOL
(washingtonpost.com)
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washingtonpost.com - Time Warner Inc. has launched an internal investigation to determine whether America Online improperly accounted for losses at its European division before and after the AOL-Time Warner merger in 2001, the media giant disclosed yesterday.
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Time Warner charged with fraud over online ads

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