AOL Time Warner may be creating more jobs in the Republic but the world's biggest media firm has seen its shares slump in the past year due to a collapse in advertising and difficulties in the global internet sector. Recent events at the company also show that the immediate outlook is challenging.

Jefferies analyst Mr Fred Moran downgraded AOL this week to a "hold" following the firm's warning that results for its online unit would fall below expectations this year.

AOL Time Warner cut its 2002 revenue and cash flow guidance for America Online again, citing a prolonged slump in advertising revenue, but maintained its targets for the overall company.