AOL_2.4.jpgTime Warner reported a $16 billion fourth quarter loss today with revenue falling 3% to $12.31 billion.

At the AOL unit, revenue fell to $968 million from $1.25 billion (-18% year-over-year) mostly on a drop in advertising.

While AOL has seen higher page views and greater usage, Marketwatch reports, “Declines in display ads on AOL Network sites again drove the decrease in the latest quarter, along with sales of advertising on third-party sites.”

Last month, Time Warner chairman and CEO Jeffrey Bewkes said the company is trying to determine what to do with AOL. The all-stock merger between AOL and Time Warner in 2000 amounted to more than $160 billion based on trading prices at the time. On the day the merger was announced Time Warner saw a share price high of $90.06. Today it is trading around $9.76 per share.

“We’re making progress at Time Warner toward our goals of becoming a more content-focused company and delivering increasing returns to our stockholders,” said Bewkes.

Related: Former Yahoo! Exec Moves to AOL’s Platform-A