NEW YORK -- Time Warner Inc. will pay about $750 million to the U.S. Securities and Exchange Commission for improper accounting, the Washington Post said. As part of the settlement, neither Time Warner nor AOL will admit or deny SEC charges AOL inflated its revenues and profits before merging with Time Warner in 2001, sources familiar with the situation told the Post.
While the final settlement could be higher or lower than $750 million, Time Warner had originally planned to settle for about $500 million, sources said.
Time Warner Chairman and Chief Executive Officer Richard D. Parsons wants the matter settled quickly, the Post said, as the SEC will not allow the company to issue new stock shares until the issue is resolved.
