January 30, 2003


I've been asked to comment by several (read: more than three) friends today on what I think about the reports of AOL losing $100 billion last quarter. First off, nothing could be further from the truth. AOL posted a profit last quarter, and revenues were up from this same time period last year. The $44 billion charge was from devaluation of stock and its reporting was federally mandated. No money left the building. We didn't spend $44 billion more than we took in. It was a correction in the street value of the company. Of course, the media reports this in a footnote long after the sensational numbers of $100 billion are tossed around.

And no, I don't know why Ted left the building. He didn't stop by my office to tell me before making his announcement.

Posted by pinkerton at January 30, 2003 2:21 PM