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American Morning
Minding Your Business: Bad Books at AOL Again?
Aired April 22, 2003 - 07:50 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Another accounting scandal; this one involves the parent company of this network, AOL Time Warner.
Andy Serwer has heard this before.
ANDY SERWER, "FORTUNE" MAGAZINE: Yes, we've all heard this before.
(CROSSTALK)
HEMMER: Good morning.
SERWER: You know, the beat goes on here, and a lot of people wish it would stop beating. We're hearing about accounting scandals at AOL Time Warner.
Two stories in "The Washington Post" and "The New York Times" today, outlining new allegations about accounting improprieties. Let's go and check this out a little bit here.
It has to do with AOL. This is, of course, the AOL division of AOL Time Warner and ad revenues. You've got Monster.com, a $100 million deal in question. "The New York Times" reporting a $25 million deal with Vivendi, Catalina Marketing, Dr.Koop.com.
Basically what's going on here, you guys, is the AOL division was desperate to get ad revenue, to show ad growth. So they were using all sorts of means: one-time fees that were coming into the company, round-tripping -- in other words, you advertise with me, I'll advertise with you -- discounts on acquisitions. Anything they could. These are the allegations.
Of course, the company has already fessed up to $190 million of improperly-accounted-for revenue, and there is $400 million in dispute with regard to a deal with Bertelsmann, the Germany media giant.
So the problems just keep on coming here, and all of us who work at AOL Time Warner and, of course, all of the investors and everyone else out there just wish it would end, but it's continuing.
HEMMER: Got it. No laughing matter.
(CROSSTALK)
HEMMER: Next time you come back, we'll talk about this Comedy Central deal, too, OK?
HEIDI COLLINS, CNN ANCHOR: That's what I was going to say.
SERWER: Yes, there are some -- actually a deal going on as well.
HEMMER: All right, Andy, thank you much. Talk to you next hour.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.
Aired April 22, 2003 - 07:50 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Another accounting scandal; this one involves the parent company of this network, AOL Time Warner.
Andy Serwer has heard this before.
ANDY SERWER, "FORTUNE" MAGAZINE: Yes, we've all heard this before.
(CROSSTALK)
HEMMER: Good morning.
SERWER: You know, the beat goes on here, and a lot of people wish it would stop beating. We're hearing about accounting scandals at AOL Time Warner.
Two stories in "The Washington Post" and "The New York Times" today, outlining new allegations about accounting improprieties. Let's go and check this out a little bit here.
It has to do with AOL. This is, of course, the AOL division of AOL Time Warner and ad revenues. You've got Monster.com, a $100 million deal in question. "The New York Times" reporting a $25 million deal with Vivendi, Catalina Marketing, Dr.Koop.com.
Basically what's going on here, you guys, is the AOL division was desperate to get ad revenue, to show ad growth. So they were using all sorts of means: one-time fees that were coming into the company, round-tripping -- in other words, you advertise with me, I'll advertise with you -- discounts on acquisitions. Anything they could. These are the allegations.
Of course, the company has already fessed up to $190 million of improperly-accounted-for revenue, and there is $400 million in dispute with regard to a deal with Bertelsmann, the Germany media giant.
So the problems just keep on coming here, and all of us who work at AOL Time Warner and, of course, all of the investors and everyone else out there just wish it would end, but it's continuing.
HEMMER: Got it. No laughing matter.
(CROSSTALK)
HEMMER: Next time you come back, we'll talk about this Comedy Central deal, too, OK?
HEIDI COLLINS, CNN ANCHOR: That's what I was going to say.
SERWER: Yes, there are some -- actually a deal going on as well.
HEMMER: All right, Andy, thank you much. Talk to you next hour.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.
