Time Warner shareholders claimed that the company's AOL unit had inflated revenues in order to push through their merger in 2001.

Time Warner's AOL unit is Yahoo's most direct and ambitious competitor in video programming.

The total cash flow - the most closely watched indicator of its performance - fell 1 percent, to $2.2 billion, mainly because of the AOL unit.

Time Warner is still in negotiations with Microsoft and Google over a variety of potential deals involving its AOL unit.

She is now an executive at Time Warner's AOL unit.

Still, that executive said, Microsoft had the impression that executives in the AOL unit preferred to work with Google.

At the time, Mr. Parsons was co-chief operating officer in charge of divisions outside the AOL unit.

Cable television delivered a strong first quarter for Time Warner, more than offsetting worsening results at its AOL unit, the company said yesterday.

This time, Comcast may be persuaded because there is the potential for substantial profit if the AOL unit were to go public.

The new AOL unit is also promising to start several new cable outlets.