FanPost

CBS close to bankruptcy? How will this effect Strikeforce and their TV deal?


Far (very far) from a financial expert. What do you guys think?

From Yahoo Finance

HT: Uniting Locals Through MMA 

Ten Big Companies Veering Towards Bankruptcy 

Which companies appear the worst off? We took the list and removed any company with a market cap under $3 billion. We then ranked the remaining names by a simple measure of the market's perceived bankruptcy risk - Market Cap (MC) divided by Enterprise Value (EV). The less MC vs. EV, the less residual shareholders' value (above what debt holders can claim) the market is pricing-in for the company. Thus a lower MC/EV means the market thinks the company is more likely to go bankrupt.

7. CBS

Weak advertising and falling license fees have sent CBS's earnings off a cliff in 2009.

If they remain depressed for too long, the company could have trouble refinancing $3.2 billion of debt coming due over the next five years.

It will really come down to whether or not CBS’s earnings collapse is merely cyclical, or the result of structural trend whereby traditional TV is dying.

As a business blog, we can't help but feel partly guilty here.


MC/EV=55%

\The FanPosts are solely the subjective opinions of Bloody Elbow readers and do not necessarily reflect the views of Bloody Elbow editors or staff.

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