AOL Time Warner under suspicion of fudging figures

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    AOL Time Warner under suspicion of fudging figures

    Another giant American company is reportedly fighting claims of dubious accounting practises.

    It is suggested AOL Time Warner used unorthodox advertising arrangements to improve its revenue figures.

    According to the Washington Post, AOL engaged in the "unconventional deals" both before and after last year's merger with Time Warner which created the world's largest media company.

    The deals in question involve $500 million, only 5 per cent of AOL's advertising business in the period, but enough to keep the company ahead of crucial revenue forecasts.

    An AOL spokesman has told the Post all the transactions in question were "appropriate", but the company's shares slumped 6 per cent in morning trading on the New York Stock Exchange.

    And AOL Time Warner's board met today before confirming speculation the company's chief operating officer, Bob Pittman will be stepping down.

    Source: ABC, Washington Post


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