You will be redirected back to your article in seconds

TW expected to settle with DOJ for $500 mil

Settlement ends 2 1/2 year probe at AOL

Time Warner will announce today a $500 million settlement with the Dept. of Justice, according to news reports late Tuesday night.

The settlement would end a two-and-a-half year probe by regulators into wide-ranging allegations that primarily focused on accounting irregularities at America Online, which merged with Time Warner in 2001. The payment would likely put to rest parallel investigations by the DOJ and the Securities and Exchange Commission.

A Time Warner spokesman declined to comment.

Investors will certainly cheer at a dissipation of the cloud that’s been hanging over the company and weighing on its stock. The shares have been slowly struggling to regain ground after being decimated by the disastrous merger. A settlement would probably mitigate the impact of multiple shareholder lawsuits that were filed against Time Warner — suits that some Wall Streeters had said could potentially cost the company billions of dollars.

The ongoing SEC inquiry has also limited Time Warner’s ability to issue stock, which complicates its pursuit of large acquisitions. Time Warner is currently in the running for Adelphia Communications.

An agreement at about this time wouldn’t be a surprise. Time Warner recently put aside $500 million for a possible settlement, although in recent weeks, a dollar figure of $750 million started circulating. Some on Wall Street said that sounded too high. At a media conference last week, Time Warner chairman-CEO Richard Parsons said the company was close to a settlement. He is said to have been actively seeking a resolution by year end.

More Scene

  • 'Boo 2! A Madea Halloween' film

    Tyler Perry Hopes 'Boo 2!' Can Help Bring Laughter to Nation's 'Darkness'

    Time Warner will announce today a $500 million settlement with the Dept. of Justice, according to news reports late Tuesday night. The settlement would end a two-and-a-half year probe by regulators into wide-ranging allegations that primarily focused on accounting irregularities at America Online, which merged with Time Warner in 2001. The payment would likely put […]

  • 'Geostorm' film premiere

    'Geostorm' Director Hopes Harvey Weinstein Scandal Signals 'Sea Change' for Hollywood

    Time Warner will announce today a $500 million settlement with the Dept. of Justice, according to news reports late Tuesday night. The settlement would end a two-and-a-half year probe by regulators into wide-ranging allegations that primarily focused on accounting irregularities at America Online, which merged with Time Warner in 2001. The payment would likely put […]

  • ‘Working Above The Line’ panel, The

    Academy's Third Annual Careers in Film Summit Inspires Young Creatives

    Time Warner will announce today a $500 million settlement with the Dept. of Justice, according to news reports late Tuesday night. The settlement would end a two-and-a-half year probe by regulators into wide-ranging allegations that primarily focused on accounting irregularities at America Online, which merged with Time Warner in 2001. The payment would likely put […]

  • Josh Radnor Ben Lee

    'Saved By a Story' Benefit Raises Money for Charity — and Builds a Community of Storytellers

    Time Warner will announce today a $500 million settlement with the Dept. of Justice, according to news reports late Tuesday night. The settlement would end a two-and-a-half year probe by regulators into wide-ranging allegations that primarily focused on accounting irregularities at America Online, which merged with Time Warner in 2001. The payment would likely put […]

  • Oprah Celebrates 'Wisdom of Sundays' With

    Oprah Winfrey Celebrates New Book 'Wisdom of Sundays' With Star-Studded Gospel Brunch

    Time Warner will announce today a $500 million settlement with the Dept. of Justice, according to news reports late Tuesday night. The settlement would end a two-and-a-half year probe by regulators into wide-ranging allegations that primarily focused on accounting irregularities at America Online, which merged with Time Warner in 2001. The payment would likely put […]

  • Goldie Hawn, Diane Sawyer and Melanie

    James Corden Doesn't Hold Back on Weinstein Jokes at Star-Studded AmfAR Gala L.A.

    Time Warner will announce today a $500 million settlement with the Dept. of Justice, according to news reports late Tuesday night. The settlement would end a two-and-a-half year probe by regulators into wide-ranging allegations that primarily focused on accounting irregularities at America Online, which merged with Time Warner in 2001. The payment would likely put […]

More From Our Brands

Access exclusive content