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Time Warner Warns of Net Loss for 08; Expects $25B Impairment Charge

Posted Jan 07, 2009 10:37am EST by David Kaplan in Investing, Internet, Media, Recession

From paidContent.org, Jan. 7, 2009:

Time Warner is warning investors that it will report a net loss ranging from $1.04 to $1.07 a share profit. Back in November, the company said it expected to income to grow 5 percent over 2007’s $12.9 billion. The company is also expecting an impairment charge of $25 billion. About $15 billion of those write-downs are related to Time Warner Cable, which the company is planning on spinning off, although it still holds an 85 percent interest, the WSJ noted. Time Warner made the announcement in advance of CFO’s John Martin presentation at the 2009 Citigroup Global Entertainment, Media & Telecommunications Conference today. Following the news, Time Warner shares were down 6.1 percent in pre-market trading.

Time Warner said the change in expectation was due to several factors and not just the worsening economic environment. For example, in December, it was hit with a $280 million expense related to a judgment against Turner Broadcasting System in a court case involving to the 2004 sale of its winter sports teams. Time Warner also pointed out that advertising at AOL and its publishing business suffered more than anticipated in Q4, reducing the expected income growth rate by about 1 percent. Release  (PDF)

For more news, go to paidContent.org.

11 Comments

william
william - Wednesday January 07, 2009 10:47AM EST

So what says the market I ok with a 200 point rop in this environment! Dividends and time is all I need

william
william - Wednesday January 07, 2009 10:50AM EST

Still have to fix the problem silly Obama giving me $40 a pay day is not the answer, you have to raise revenue, Mobil, Chevron and Exxon made more then all of taxpaying americans and you let them off with no taxes, guys making 20 million a year are paying 35% top rate!!! Come on don't be stupid piss of 5% and fix the problem for the other 95% NOW and then don't forget to jail the crooks who took checks so large they bankrupted the companies

william
william - Wednesday January 07, 2009 10:52AM EST

Jail the crooks and thieves, enact term limits, enact salary caps, raise taxes and all will be OK again I promise

R
R - Wednesday January 07, 2009 11:03AM EST

Solutions to the economic mess are relatively simple but tough medicine, which no one will admit. We need to do what the rest of the world (China, India, Japan, Germany) does: work hard, save money, educate our youth. I have yet to hear one government or business leader say this. Either they don't get it or don't care. USA will continue to decline until we have honest, decent, and tough leadership. The whole US economy is a Ponzi scheme, and will continue to unravel until we start producing and selling things beside promises. Name one politician, banker, business leader, economist, pundit, or author who can state what everyone knows. I can't.

Yahoo! Finance User
Yahoo! Finance User - Wednesday January 07, 2009 11:05AM EST

Exxon posted the largest profit in corporate US history. Exxon also paid the largest single entity tax bill in US history. I guess you didn't hear that part. $14.8 billion profits in the third quarter set a new record, but they also paid a new record $11.327 billion in income taxes to various governments in the third quarter. - sources http://mjperry.blogspot.com/search?q=exxon http://www.businesswire.com/portal/site/exxonmobil/index.jsp?ndmViewId=news_view&ndmConfigId=1001106&newsId=20081030005627&newsLang=en

Yahoo! Finance User
Yahoo! Finance User - Wednesday January 07, 2009 11:12AM EST

That's a 43% tax rate - those crooks. : )

lucho
lucho - Wednesday January 07, 2009 11:47AM EST

The three biggest problems the US is facing right now are: 1.Representative democracy does not work when people are uneducated and irresponsible....2.Corporate incentives are short term oriented...3.Workers incentives have been altered by the culture of entitlement that is creeping in.

Yahoo! Finance User
Yahoo! Finance User - Wednesday January 07, 2009 12:04PM EST

Jobs.....Jobs.....Jobs....whatever it takes to get our jobs back. Pay me and I will start buying things I don't really need again. I promise.

Art
Art - Wednesday January 07, 2009 01:31PM EST

The Socialists are fools. FDR tried spending the country out of the depression. The depression was prolonged for twenty years. Remember, the stock market did not recover to pre-depression levels until 1954. The Republican Party took over in 1952.

Art
Art - Wednesday January 07, 2009 01:35PM EST

The Socialists are fools. FDR tried spending the country out of the depression. The depression was prolonged for twenty years. Remember, the stock market did not recover to pre-depression levels until 1954. The Republican Party took over in 1952.

Yahoo! Finance User
Yahoo! Finance User - Wednesday January 07, 2009 10:16PM EST

check out LAPoliceGear.com if you want to save money.. do not buy stocks.. buy extra boots and pants for the approaching depression. Or invest in WorkBootsUSA.com. All these new blue collar workers that are going to be building new roads will need new boots!

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