Time Warner Takes A Spill On The Street

Time Warner's stock plunged 6 1/4, to 110 3/4, following a published report that the company was pondering the sale of equity to pay down part of its $11 billion in debt. Traders worried that billions of dollars in new stock would dilute current shares.

Wall Street was also concerned that efforts to strike big deals with foreign partners were leading nowhere. However, Time Warner, with $2.3 billion in annual cash flow and billions in assets, can probably afford to be patient in working out the details of its foreign alliances.

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