Turner Quits as AOL Loss Hits $99B

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Last updated at: (Beijing Time) Thursday, January 30, 2003

Turner Quits as AOL Loss Hits $99B

AOL Time Warner (AOL) rocked Wall Street on Wednesday as it reported a $99 billion loss for 2002 -- the largest annual loss ever by a U.S. company -- and said Ted Turner is resigning as vice chairman.

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AOL Time Warner (AOL) rocked Wall Street on Wednesday as it reported a $99 billion loss for 2002 �� the largest annual loss ever by a U.S. company �� and said Ted Turner is resigning as vice chairman.

The announcements cap a tumultuous year for the world's largest media company and might be seen as the final pen stroke on the Internet go-go years.

The announcements came after markets closed. AOL shares dropped 10% in after-hours trading.

Though most of the loss is on paper, it indicates a breathtaking collapse in the value of what was considered a fearsome powerhouse in 2001 when America Online bought Time Warner for $106 billion.

No immediate effect on consumers is anticipated. But America Online will continue plans to court more broadband customers and to give AOL subscribers access to exclusive content from other Time Warner properties, for a fee.

During the Internet boom, America Online was valued at more than $200 billion. Now it is on the books for $7.8 billion. That computation comes after the company's surprising announcement that it shaved $45.5 billion off the value of its assets in the last quarter of 2002 �� most of that due to the diminished worth of America Online, where ad sales have plummeted and subscription growth has slowed.

Earlier in the year, the company slashed the value of other non-Internet assets by $54 billion.

Turner is to step aside as vice chairman after the shareholders' meeting in May. One of AOL's largest investors, Turner, 64, did not say whether he will also give up his board seat. That will be settled soon, an AOL spokeswoman said, although Parsons believes Turner will stay.

Source: Agencies

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