AOL Time Warner Inc. said on Friday it agreed to sell its CD and DVD manufacturing business to a Canadian company for $1.05 billion and would use the proceeds to trim its $26 billion debt load. Under pressure from Wall Street, AOL Time Warner AOL.N has pledged to cut its debt to $20 billion by the end of 2004 and has been pursuing a number of deals, including the sale of its sports teams and a possible joint venture between its recorded music business and Bertelsmann AG's BERT.UL BMG. With these moves in the works and expectations for stronger quarterly earnings, some on Wall Street say the tide may be turning for the world's largest media company, which has been dogged for the past two years by slowing growth in its Internet business and government probes into its accounting. "In this market, sentiment has its impact," said Paul Kim, an analyst at investment research firm Kim & Company.