Time Warner (TWX) became the latest media titan to feel the pain of the U.S. recession as the owner of CNN and Time said it now expects to incur a net loss in 2008 due to $25 billion of writedowns at Time Warner Cable (TWC), Time Inc. and AOL. 

“The economic environment has proved somewhat more challenging than the company previously expected,” particularly at its publishing units and AOL’s advertising business, Time Warner said in a release.

Time Warner slashed its annual earnings guidance as the company now sees a 2008 loss, compared to its previous forecast for operating income to rise 5% to a range of $1.04 to $1.07 per share. 

Shares of Time Warner fell sharply as analysts polled by Thomson Reuters had been expecting 2008 earnings of $1.04 per share. 

The news also weighed heavily on rival media conglomerates such as Walt Disney (DIS) and News Corp. (NWS), parent of The Wall Street Journal and FOX Business.

Time Warner plans to take $25 billion in writedowns related to certain assets at its publishing and AOL segments, as well as Time Warner Cable, which it owns an 85% stake in. Nearly $15 billion of the writedowns stem from Time Warner Cable. 

In a separate release, Time Warner Cable said it sees a $350 million charge due to its investment in wireless broadband venture Clearwire (CLWR), which has sank to as low as $3.24 per share after debuting at $25 during its 2007 IPO. The charges will also results in a 2008 net loss at Time Warner Cable. 

In addition to AOL, Time Warner owns Time Inc., which has a portfolio of 125 titles, including magazines like Entertainment Weekly, People, Fortune, Time and Sports Illustrated.

The company detailed a range of other charges that will impact the full year’s financial results, including a $280 million charge related to a judgment won against Turner Broadcasting System last month and up to $60 million due to restructuring a lease at the Time & Life Building. The lease space had been held by Lehman Brothers, which filed for bankruptcy in September. 

Time Warner also said it will increase its reserves for potential credit losses by $40 million due to several customers who have recently declared bankruptcy, including Circuit City (CC) and British retailer Woolworths. 

The company sees its adjusted-cash flow in 2008 rising by 1% from $12.9 billion the year before, well below its earlier forecast for 5% growth.

Declining ad sales at AOL and Time Inc. accounted for one percentage point of the decline, while the range of charges caused Time Warner to lower its earlier forecast by about three percentage points. 

Time Warner is set to give more details on its fourth-quarter and full-year results on February 4.