AOL had to take a $54 billion charge!

[Random Variable]

April 24, 2002: 4:21 PM EDT

NEW YORK (CNN/Money) - AOL Time Warner Inc. Wednesday reported a net loss of $54.2 billion for its first quarter -- one of the biggest losses in corporate history -- mostly from a one-time charge of $54 billion.

The charge reflects a decline in value of AOL's purchase of Time Warner and was recorded in accordance with a new accounting rule requiring companies to record declines in the value of acquired assets.

Excluding interest, taxes, depreciation and amortization, AOL Time Warner logged a profit of $2.05 billion, which compares with $1.9 billion a year earlier and was slightly above most forecasts by Wall Street analysts.

At $9.8 billion, AOL Time Warner's first-quarter revenues rose 4 percent from $9.1 billion a year earlier and were slightly above expectations. AOL Time Warner is the parent company of CNN/Money.

 

[JellyBaby]

AOL users expect another rate hike soon? 🙂

 

[Random Variable]

but AOL's stock is up a dollar in after-hours trading

 

[ScottyB]

Doh, I though it was going to be for something funny. Like the CEO installed some software and the EULA said they had to pay the company $54 billion if installed longer that a day, or something.

 

[NikPreviousAcct]

McDonald's hasn't been making money for years either. Something like six years. AOL will be around for a long, long while.

nik

 

[Vette73]

54billion was for goodwill from when AOL bought Time Warner. It is more of a book charge than anything. A way to pay less if NO tax. They in fact did better now than a year ago if you don't count the goodwill write off. That is why the stock is up.

 

[KeithP]

54 billion? That is $1 for every CD they mailed.

 

[spanky]

how i wish they would stop mailing me those cd's.