AOL Time Warner revealed they have lost exactly $54.2 billion in the first quarter of 2002. The biggest media company in the world had the biggest loss ever in the American history. Its stock lost 74% of its value.
"The loss is a recognition that AOL paid too much for Time Warner", says George Gilbert, from Northern Technology Fund, which has AOL stock. "If they paid for it in cash, it would be a real disaster, but they paid for it in AOL funny money."
According to AOL, one of the problems is the poor advertising sales, which fell 10%. "Online advertising is a disappointment", said Richard Parsons, AOL's chief executive officer.