Time Warner Reportedly Nears AOL Accounting Settlement
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
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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.
