Time Warner to take $25 bn writedown

NEW YORK: US media-entertainment giant Time Warner said on Wednesday it would take a writedown of $ 25 billion to reflect declining values of its AOL Internet unit along with cable and publishing operations.

The hefty writeoff will lead to an operating loss for Time Warner, the sector leader which owns Warner Brothers studios, Time Life publishing and other operations.

"The economic environment has proved somewhat more challenging than the company previously expected, particularly for the advertising businesses at the AOL and publishing segments," the company said in a statement.

The company said it would take other charges of between 370 million and 380 million dollars in the fourth quarter, results of which are set to be announced February 4.

Shares in Time Warner fell 6.2 percent in early trades to $10.30.