NYT,pg1: Settlements Seen in US Inquiries into Time Warner(CNN parent co.)

[DeepModem Mom]

Settlements Seen in U.S. Inquiries Into Time Warner
By GERALDINE FABRIKANT

Published: December 15, 2004


Time Warner is expected to announce a settlement with the Justice Department in its investigation of advertising deals between America Online and smaller Internet companies that may have allowed America Online to exaggerate its growth, an official close to the case said yesterday. The announcement could come as early as today.

The company may also announce a tentative agreement with the enforcement division of the Securities and Exchange Commission, which is conducting a separate investigation into accounting irregularities at America Online, the official said. Time Warner is expected to pay $500 million to $600 million to settle all civil and criminal accusations with the two agencies.

Time Warner is expected neither to admit nor deny wrongdoing, the official said. A Time Warner spokesman declined to comment.

Time Warner has been pushing to conclude the two investigations before the end of the year, in part to help put the last issues from the widely criticized America Online merger behind it and in part because it wants to join with the Comcast Corporation to bid for part or all of Adelphia Communications, the bankrupt cable television company.

For two years, the Justice Department and S.E.C. cases have restricted the company's ability to finance deals. Time Warner has disclosed in its S.E.C. filings that it is unable to issue new stock or borrow money through the debt markets while the S.E.C. is questioning the reliability of its audited financial statements....


http://www.nytimes.com/2004/12/15/business/media/15media.html

[DeepModem Mom]

1. Anybody else think this may have affected CNN's political coverage...

during the 2004 campaign? With these problems stifling TimeWarner's business goals, CNN's coverage was so favorable to Bush, we devoted one DU day to a "Blitz CNN" deluge of emails, faxes, and phone calls, protesting Judy, Wolf and Candy, and extensive live broadcast of Bush speeches, while only snippets of Kerry speeches were broadcast. And then there was the 24/7 coverage of the SwiftBoat Liars, etc.

Election is over; Bush "won"; settlement reached with Justice and SEC; TimeWarner back in business!

[Brundle_Fly]

2. this plot is so thick

its clumping.