AOL REVENUE: $400 Million Off?
The SEC is exploring whether AOL TW did the nasty with Bertelsmann AG when it booked revenue against a large advertising deal tied to AOL/Bertlesman’s joint investment in AOL Europe.
In a memo to employees on Friday, Chairman Dick Parsons wrote:
“It is not possible at this time to predict how this issue will ultimately be resolved, or for that matter, to predict the ultimate outcome of either the SEC or DOJ investigations. What I can tell you is this: We are committed to dealing with these questions forthrightly and as expeditiously as possible.”
The SEC announced last summer that they were conducting an investigation into AOL accounting practices..looks like it ain’t over yet.
Raise your hand, children, if you think AOLTW will have to restate $400MM in revenue?

What’s that you say? A future stock price of $8.00? Removal of the AOL name from the company masthead? A sale of the AOL unit to Yahoo ?
Rumors, all of them.