Time Warner Reportedly Nears AOL Accounting Settlement

The company would pay $750 million to end SEC and Justice Department probes.

Author:: TSC Staff
Publish date:: Nov 23, 2004 9:10 AM EST

Time Warner

(TWX)

rose Tuesday on a report it is nearing a deal to settle a government accounting probe for about $750 million.

The pact would end investigations by the Justice Department and

Securities and Exchange Commission

into the company, although certain individuals would still be subject to enforcement, the

Washington Post

reported.

Time Warner's AOL unit earned regulatory scrutiny for a number of marketing arrangements that appeared to conjure revenue out of nowhere during the Internet bubble. The terms of its acquisition of Bertelsmann's stake in AOL Europe also struck some as an underhanded way of goosing its sales line.

The $750 million settlement figure is $250 million larger than AOL's existing legal reserve. Still, the stock was up 48 cents, or 2.8%, to $17.94 on Instinet.