AOL loses Ted Turner and $99 billion
C|Net | at | by Mike
Ted Turner is resigning as vice chairman of AOL Time Warner, capping a tumultuous year for the beleaguered media giant. The announcement came just shortly after the company reported a net loss of $98.7 billion for 2002. Those results included a $45.5 billion fourth-quarter charge related primarily to depreciation in the value of its America Online unit, as well as a first-quarter charge of $54 billion in accordance with changes in accounting rules. Turner will step down in May, joining Steve Case, who announced earlier this month that he is resigning as chairman.
As expected, the company's online division reported disappointing financial results. America Online's EBITDA declined 11 percent during the quarter while its revenue decreased. EBITDA for 2002 dropped 22 percent while revenue slipped 4 percent. AOL's problems went beyond weakness in advertising and e-commerce, with its subscriber base slipping to 35.2 million from 35.3 million in the third quarter of 2002.