UPDATE 2-Viacom warns on profit as advertising sales fall

owner of MTV Networks and Paramount movie studio, warned third quarter earnings would fall at least 10 percent short of Wall Street estimates due to a decline in U.S. advertising sales. The Friday warning drove shares of Viacom down nearly 20 percent and raised more concerns about the media industry's ability to weather the economic turmoil. Time Warner Inc (TWX.N: ) shares also fell sharply in a broadly weaker stock market. "Given the rapid softening of the economy and the uncertainty this creates in forecasting advertising growth, we are... [read full story]