Time Warner Losses Drag Down Market
The stock market was rattled anew on Wednesday as Time Warner said that it will write down some $25 billion in fourth-quarter "impairment charges" mostly related to franchise rights of Time Warner Cable, AOL, and its publishing units. It was also hurt, it said, by the collapse of Lehman Brothers, which had leased space in its New York headquarters building, and the bankruptcy of Circuit City, which owed it millions of dollars in advertising fees. Time Warner shares plunged 6.3 percent to $10.29. (It fell to $10.10 in early trading today.) Analysts expressed dismay that the company did not have a handle on many of the matters that had stoked the reversal. Some speculated that it could also affect the chances of former CEO Richard Parsons' chances of being named Commerce Secretary, as many have speculated.