Feeds

Meltdown turns Time Warner red

AOL owner/Lehman landlord admits $25bn write-down

Top 5 reasons to deploy VMware with Tegile

Time Warner expects to report a red 2008, thanks to a whopping $25bn impairment charge for its cable, magazine publishing, and, yes, AOL businesses. This would be the media giant's first annual loss in six years.

Naturally, it blames the Meltdown. "The economic environment has proved somewhat more challenging than the company previously expected, particularly for the advertising businesses at the AOL and publishing segments," Time Warner said in a statement released this morning.

But that's just a start. The company was directly affected by the demise of Meltdown poster child Lehman Brothers. The bankrupt investment bank was a tenant in Time Warner's flagship New York office building. After a restructured lease, the company will stomach another loss of between $50 million and $60 million.

It also expects roughly $40 million in credit losses from bankrupt customers like Circuit City. And there's that recent court judgment against the company's Turner Broadcasting System (related to the sale of its winter sports teams), which could result in a $281 million charge.

For 2007, Time Warner - which owns CNN, Time magazine, and the Warner Brothers film studio as well as AOL, Time Warner Cable, and the Turner Broadcasting Company - reported an operating profit of $8.9bn. It last reported a year-end loss in 2002, when the bottom fell out of AOL.

This time around, Time Warner Cable is the biggest disappointment, representing $15bn of the company's $25bn write-down.

When Time Warner last provided a financial outlook on November 5, it expected adjusting operating income before Depreciation and Amortization to grow around 5 per cent. Now that figures is down to 1 per cent.

Time Warner is due to announced its fourth quarter financial results on February 4. ®

Beginner's guide to SSL certificates

More from The Register

next story
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Lords take revenge on REVENGE PORN publishers
Jilted Johns and Jennies with busy fingers face two years inside
Yes, yes, Steve Jobs. Look what I'VE done for you lately – Tim Cook
New iPhone biz baron points to Apple's (his) greatest successes
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Edward who? GCHQ boss dodges Snowden topic during last speech
UK spies would rather 'walk' than do 'mass surveillance'
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.