AOL Time Warner is today expected to post the largest quarterly loss in US corporate history.
The Los Angeles Timessuggests the world's biggest media company will post a loss of more than €57 billion. It says the figure largely reflects new accounting rules.
But the paper says it also shows that the merger between America Online and Time Warner has fallen dramatically short of expectations.
Two years ago when the deal was announced, the two companies had a combined stock market value of around €325 billion. The LA Times says AOL Time Warner's stock is now worth about €98 billion.
Commenting on the expected losses, analyst Mr Harold Vogel, of Vogel Capital Management in New York, says: "It is an appalling number, bigger than the gross domestic product of some countries."
Wall Street has already factored in the loss. AOL Time Warner's shares have fallen 41 per cent this year, partly because the company forecast the losses a few weeks ago, and because of the slowdown in advertising that has hurt its properties.
An AOL Time Warner spokesman declined to comment. The figures will be a measure of the task facing Mr Richard Parsons, who replaces Mr Gerald Levin as chief executive next month. Mr Robert Pittman, chief operating officer and master salesman, has been put in charge of reinvigorating the AOL branch of the company.
Analysts say that poor results from the internet division were expected to pull down a stronger performance by the Warner Bros film division and cable TV group.
