AOL reveals staggering losses

NEWS Media giant AOL Time Warner has revealed massive losses following one of the largest ever write-downs. AOL reported a first quarter loss of $54bn - comprised almost entirely of the one-off charge it took earlier in the quarter (http://www.silicon.com/a52301 ) relating to the $106bn purchase of Time Warner. However, putting aside the $54bn write-down, revenues came in ahead of analysts' predictions - as the box office success of Warner Bros' Tolkein epic The Lord of the Rings offset the decline in advertising sales. Other divisions of the company which showed positive growth were music, where revenues were up five per cent to $947m and subscription revenues - to AOL and cable television - which were up 14 per cent to $4.7bn.