NewsMine — cabal-elite — corporate — telecoms — AOL — Viewing Item

Aol probe continues { March 29 2003 } Original Source Link: (May no longer be active)    http://www.washingtonpost.com/wp-dyn/articles/A44591-2003Mar28.html http://www.washingtonpost.com/wp-dyn/articles/A44591-2003Mar28.html AOL May Restate More Results as Probe Continues SEC Looking at Advertising Revenue By Christopher Stern Washington Post Staff Writer Saturday, March 29, 2003; Page E01 AOL Time Warner Inc. disclosed in regulatory filings yesterday that it may issue further restatements of its financial results as a federal investigation continues into a series of deals between its America Online unit and other companies. For the first time, the media giant reported that the Securities and Exchange Commission is looking into two advertising-related transactions totaling $400 million between AOL and Bertelsmann AG, the German media conglomerate. According to AOL Time Warner's filing, the SEC has reached a "preliminary view" that the company improperly accounted for two advertising contracts between AOL and Bertelsmann, one for $125 million and another for $275 million. In total, the two deals are the largest transactions the company has described yet to come under federal scrutiny. The SEC is looking into the possibility that Bertelsmann bought $400 million worth of ads on the America Online service as part of AOL's payment to Bertelsmann for its 49 percent stake in AOL Europe. The SEC told AOL Time Warner that its staff reached a preliminary determination that at least part of the $400 million in advertising fees should be treated as a reduction in the $8 billion purchase price for AOL Europe. AOL had booked the $400 million entirely as advertising and commerce revenue. The AOL unit did run advertisements for Bertelsmann as specified in the contracts. At the time that the deal took place, in January 2002, AOL was under pressure to show growth in its online advertising and commerce divisions. In October, the company announced that it would restate $190 million over a two-year period to more accurately account for advertising and commerce deals completed before and after its merger with Time Warner in January 2001. "We are continuing our efforts to cooperate with the SEC as we have been all along and it wouldn't be appropriate to comment at this time," said AOL Time Warner spokesman Edward Adler. In an e-mail sent to AOL Time Warner employees yesterday, chief executive Richard D. Parsons wrote: "At the time the Bertelsmann transactions took place, both we and our independent auditors believed that they were accounted for appropriately. Based on the facts available to us, we both continue to believe the accounting was correct, and we have so advised the SEC." AOL Time Warner is under investigation by both the SEC and the Justice Department. "It is not yet possible to predict the outcome of these investigations, but it is possible that further restatement of the company's financial statements may be necessary," the company wrote in its regulatory filing. Also yesterday, the company announced in a separate proxy statement that Daniel F. Akerson, a current member of its board of directors, will not stand for reelection at the next board meeting, scheduled for May 16. Akerson, the former chief executive of Reston-based XO Communications Inc., is now a managing director of District-based Carlyle Group. Akerson will not be replaced on the board, and the total number of members will be reduced from 14 to 13. AOL Time Warner said it plans to hold its next annual meeting at the Lansdowne Resort in Lansdowne, Va. © 2003 The Washington Post Company

100b losses { January 29 2003 } Accounting appropriate { July 18 2002 } Aol boss sold shares Aol discloses sec probe { July 25 2002 } Aol exec Aol hard to cancel { September 24 2003 } Aol losses 1m subscribers { June 4 2003 } Aol plans big cuts { January 10 2003 } Aol probe continues { March 29 2003 } Aol purchasepro fool investors { September 24 2003 } Aol subscribers down 846 000 { July 24 2003 } Aol time warner eliminate aol from name Aol tw blackhole { April 29 2002 } Aol tw sells 2bil Case quits { January 13 2003 } Crimimal probe { August 1 2002 } End of 2004 loses 646 thousand subscribers { December 7 2004 } Fbi continues aol probe Justice investigates aol Levin aol More sec probing { April 22 2003 } Oust case { September 17 2002 } Profits to plunge Steve case showdown { July 21 2002 } Time warner drops aol name { October 13 2003 } Turner fights case Turner levin aol { June 4 2002 } Turner retired Turner sold 5m { February 7 2003 } Turner take aol { September 18 2002 } Turner un { November 20 2001 } Unconventional { July 18 2002 } Wheres steve case { July 19 2002 } Wont rebound till 2004 { December 4 2002 } Files Listed: 34

Correction/submissions

CIA FOIA Archive

National Security Archives

This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information, go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purpose of your own that go beyond 'fair use', you must obtain permission from the copyright owner.