Time Warner shells out for buyback

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AOL Time Warner may not have enough money to pay those pesky CNN employees, but the company has plenty of cash to buy back its stock.

The company disclosed that a plan to repurchase up to $5 billion of its common shares, about 4% of the shares it issued to purchase Time Warner Inc. last week. The plan could help soak up shares dumped by Time Warner stockholders who don't want to hold AOL shares. AOL also plans to file a shelf registration statement for $10 billion worth of securities, including debt that could be used to fund the stock buyback.

AOL doesn't plan to plunge into the market, but said it will buy shares from time to time over up to two years. Companies often announce buyback plans but never spend the full amount, even years later. - John Higgins

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