Warner Settles Fraud Charges with Justice Department
Update: Time Warner
Inc. has agreed to pay $210 million to settle securities fraud charges involving
the company's America Online unit, the Justice Department announced Wednesday.
Under terms of the settlement with the DOJ, prosecution on charges of
aiding and abetting securities fraud will be deferred for two years provided that
the media giant cooperates in an ongoing investigation into whether AOL improperly
helped smaller Internet companies artificially inflate their earnings.
The settlement, however,
does not apply to a separate investigation by the Securities and Exchange
Commission into alleged accounting irregularities at AOL. Time Warner
has agreed to a separate settlement of $300 million for those allegations.
The SEC's five commissioners still need to approve the deal.
The proposed settlement
with the SEC would resolve an investigation by the securities watchdog
into whether AOL improperly accounted for a $400 million payment from
the German media company Bertelsmann AG, which used to own 50 percent
of AOL Europe, and whether that was used to inflate America Online profits.
Time Warner Reports $45 Billion Loss; Turner Steps Down
AOL Time Warner announced
Wednesday it was reporting a $45.5 billion quarterly loss to account for the declining
value of its flagship America Online property -- bringing the company to post
an annual loss of nearly $100 billion, the largest annual loss ever in corporate
Audio: Paul Solman examines the story behind the media behemoth's fall.
AOL Time Warner Chief Executive Dick Parsons Tapped as New Chairman
Update: AOL Time Warner's
board of directors unanimously elected Chief Executive Dick Parsons to become
the company's next chairman, replacing Steve Case who announced his resignation
four days ago. (1/16/03)
Time Warner Chairman Steve Case to Resign
Steve Case, the media
chief who helped engineer the corporate marriage of AOL and Time Warner two years
ago, announces he will step down as chairman of the merged corporation, saying
his departure was "in the best interest of the company."
correspondent Terence Smith discusses Case's
resignation and the future prospects for AOL Time Warner with Nina Munk, contributing
editor of Vanity Fair, and Tom Wolzien, a senior media analyst at Sanford C. Bernstein
and Co. (1/13/03)
Dept. Opens Inquiry into AOL Time Warner
AOL Time Warner confirms that the Justice Department is investigating the accounting
practices of its online division. (7/31/02)
Investigates AOL Time Warner Accounting
AOL Time Warner discloses that the Securities and Exchange Commission has launched
an investigation into accounting practices at its America Online division.
the Marriage in Trouble?
With the ouster of
AOL Time Warner's Chief Operating Officer Robert Pittman, the fate of the largest
media company in history seems in doubt.
Warner looks at the crisis facing corporate
giant AOL Time Warner with Bill Whyman, technology analyst and president of
the Precursor Group, an investment research firm; and Jeffrey Rayport, CEO of
Marketspace and former professor at Harvard Business School. (7/19/02)
Look Back: The Masters of the Megamerger
The leaders of America Online and Time Warner
talk about leading the largest corporate merger in history. (1/12/00)
FCC's William Kennard on the AOL-Time Warner Merger
The FCC Chairman discusses
his agency's approval of the $106 billion America Online/Time Warner deal.
Gives AOL/Time Warner Merger Conditional Approval
The FCC votes to approve
America Online's acquisition of Time Warner, giving its nod to the creation of
the largest U.S. media company.
FCC Chairman William Kennard announces the AOL/Time Warner merger has been approved.
A Federal Trade Commission
lawyer and two industry watchers discuss what the America
Online/Time Warner merger could mean for the Internet and other developing
Approves AOL/Time Warner Merger
With the Federal Trade
Commission's approval in hand, AOL and Time Warner come one step closer to completing
the biggest merger in US history.
FTC Chairman discusses the merger's potential effect on developing technologies.
(full speech) | Video
director of the FTC's Bureau of Competition explains how the merged companies
would encourage competition.
(full speech) | Video
Time Warner Merger Announced
Four experts discuss the $166 billion
merger of America Online with Time Warner. (1/10/00)