What’s the value of media conglomerate in a recession? Less than it was a few years ago. Last week, Time Warner announced a $25 billion write-down. Now NBC Universal’s parent company, GE, may be looking at one of its own, courtesy of Vivendi, which owns a 20 percent stake in the broadcast network/movie studio/cable TV outfit.
Yes, this economic collapse is different than the dotcom blowup at the beginning of the decade. But there are some similarities. For instance, in 2002, Time Warner had to take a $54 billion write-down connected to its disastrous AOL deal. Today, the company has announced a $25 billion write-down, which is in part connected to… its disastrous AOL deal. Insult to injury: Time Warner is also paying for Lehman’s collapse.
Peter Kafka has been covering media and technology since 1997, when he joined the staff of Forbes magazine. Most recently, he has been the managing editor of the tech and media Web site, Silicon Alley Insider.
Here is a statement of my ethics and coverage policies. It is more than most of you want to know, but, in the age of suspicion of the media, I am laying it all out.
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