AOL Time Warner


is preparing a $10 billion writedown later this month to reflect deterioration in the value of its struggling America Online unit, according to a report in the

Washington Post


The media titan, which plans to disclose the charge on Jan. 29 during its year-end financial results, doesn't expect the bad news to adversely affect its liquidity or debt obligations, the newspaper said. The move would mark the second time in a year that the company has been forced to reduce the value of its Internet business since the merger of AOL and Time Warner in 2001. In the first quarter of 2002, the company recorded a $54 billion writedown.

The news sent shares down 30 cents, or 2.2%, to $13.58 in premarket trading on Instinet.