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AOL Time Warner has problems with its legacy

AOL Time Warner has problems with its legacy

At the moment, AOL Time Warner is still struggling with its legacy issues. The stock was down $ 2.06 to 31.75, a loss of 6.1 percent. The reason for these poor results is likely the installment due in January for the purchase of 50 percent of the shares in AOL Europe from Bertelsmann.

AOL Time Warner has to pay 5.3 billion dollars to Berteslmann, which in is about the total estimated value of AOL Europe. The agreement on this purchase was already reached last year and provides for a total of 6.75 billion dollars to be paid to Bertelsmann if the company leaves AOL Europe for it. The second installment is due on July 1, 2002 and then amounts to another 1.45 billion. When AOL Time Warner agreed to do business with Bertelsmann, the value of AOL Europe was still estimated at around 13.5 to 16.5 billion dollars. Not a particularly good deal for AOL Time Warner at this point.