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I pulled out of just about all my AOL Time shares at around $16, far above yesterday’s close at $9.64, but I should have done so much earlier.

The really nefarious thing about the post-merger AOL was that it once seemed a reasonable hedge against corporately promoted copyright laws that could wreak havoc on Net-oriented writers and editors like me. I believed that the officers of the company would be at least somewhat responsible about earnings and revenue forecasts, and that the share prices would not fluctuate like those of a dotty dotcom.

Given these uncertain times, it is understandable for media conglomerates to be off-target in their estimates, but the issue for AOL Time Warner went beyond that–to the question of just how misleading the numbers were. Hence the fond interest of the Washington Post (perhaps jealous because it missed out on the chance to buy AOL) and the SEC.

The good news is that the normal checks and balances might be working–perhaps I’ll even risk a few hard-earned dollars because the price is so far down and I need to look ahead for retirement. Meanwhile, however, AOL has shafted me in two ways, first through its support for anti-Net copyright policies and second through its bookkeeping. I take it for granted that corporate executives are not monks. But AOL surpassed all expectations. And even now the scandals could be far from over. That $9.64 bargain could easily turn into a $5 one, regardless of the value of Time Warner assets. This greatly and deservedly hated conglomerate has been a wealth-drainer for the common investor, a piggybank for its top managers.

The TeleRead take: AOL is a splendid example of the desirability of a library-style distribution system that could better help creators and shareholders keep track of actual revenues. Independent auditors are not enough. The irony is that a library approach might actually build the value of the conglomerates’ stock–by allowing investors to get a better handle on revenues.

 
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