What could possibly be the problem?
Posted on 10/06/2009 12:37:31 PM PDT by rvoitier
Two weeks ago, we noted that CBS had been pinpointed by Audit Integrity as one of 10 big companies at risk of bankruptcy.
This prompted an outraged denial by CBS.
As the banking collapse illustrated, any time a company denies that it's about to go bankrupt, it makes sense to assume that the company is indeed about to go bankrupt--and then analyze the situation for yourself.
We've now done that for CBS. Here's the bottom line:
CBS is not on the verge of bankruptcy. The company is, however, highly leveraged, and its cash flows have been deteriorating rapidly. So if current trends continue, the company will be forced to cut more costs or risk violating debt covenants. If CBS's cash flows keep deteriorating after that, it will very much be on the verge of bankruptcy.
CBS has also blown billions in recent years stupidly buying back its own stock at much higher prices--shareholder value destruction at its finest. So the company's weak financial position is very much of its own making.
(Excerpt) Read more at businessinsider.com ...
Here's a snapshot of CBS's current financial position:
Cash: $341 million
Debt: $7 billion
That's called leverage!
Meanwhile, CBS's cash flows have been precipitously declining:
2006 Free Cash Flow: $1.5 billion
2007 Free Cash Flow: $1.7 billion
2008 Free Cash Flow: $1.7 billion
2008 Free Cash Flow (through June): $1.4 billion
2009 Free Cash Flow (through June): $250 million
How’s your Soul doing, Katie?
WOW! I’ve got a MBA but even a grade school kid singing praises to obozo could comprehend that information.
I guess it’s up there where she got her on-camera colonoscopy! I hear they found her head up there.
Wow, not even replacing Couric with Limbaugh would save this sick dog.
Man I love those numbers.There better not be a bailout.
a ‘bailout’ and government takeover of television networks and other media...
it’s probably a safe bet that’s already in the works.
they also will have to payout civil settlements to these Letterman Ladies. i saw an estimate of up to 100 million for that alone.
Character, Capacity, Capital, & Conditions.... I’d say it’s not looking good for CBS. Maybe that Mexican dude that bailed out the NY Slimes will save ‘em. Temporarily.
Maybe if they try a more liberal agenda; you know, be a media puppet for Obama - then people will want to watch their programs, and money will flow back into the coffers ... just be a bit more liberal.
Don’t go to the middle of the road, and present both sides of a news story - like FoxNews. Lord knows you don’t need their fiscal problems -like paying higher taxes, splitting up the profits, making your shares actually go up in value and having great numbers in the Neilson ratings ...
Be even more liberal - you can see how effective it’s been for the Newspaper industry, ErrorAmerica and the Magazine industry.
All the networks news divisions are scum. Liberal hacks just repeating the latest from the DNC. No thought at all.
The entertainment divisions of the networks are different. CBS actually produces some quality work (much of it produced by Jerry Bruckheimer). CSI, CSI:NY, etc, The Amazing Race, How I Met Your Mother, and several others are interesting shows that shouldn’t be lumped with the news divisions, although the news divisions remain scum.
cBS: Too big to fail!(/sarc)
Rush Hudson Limbaugh, M..M..M.
You have to wonder how they are still running at all with that sort of difference between CASH and DEBT.
and if you’ve sampled any of their new fall lineup, I think you’ll agree they are in no danger of pulling out of that tailspin
Hot Da** ! Good news and it’s Just Tuesday !
as Clinton Gregory Sang “ You Didn’t (’er Won’t) Miss a Thing”
FYI
“Is CBS going bankrupt?”
I sincerely hope so.
I’ll second that!
Government bailout coming in 5..4..3..2..
Could this be why a CBS news employee tried to blackmail Letterman? They needed the money?
don’t they mean NBC?
From what I know, they both could be on the hook. Be it an independent contractor or regular employee, if he is on your premises and has authority or influence on your employees, you hold responsibility for his actions.
Aw, too bad. Maybe they’ll be forced to sell off their news division to Rupert Murdoch. :)
Barack will buy them cheap. He needs a channel that he can be on all day.
CBS turns into BOC - Barack Obama Channel. They will constantly run anything he’s teleprompted at. His inauguration (except the oath flub), his debates, his press conferences, his sound bytes on various issues, etc.
The rest of the country will regard the BOC channel as ‘the heavenly device that allows me to get a good night’s sleep’. Millions of people will not have to take expensive medicines to get to sleep, with the BOC channel running 24/7, anyone on any shift will be able to sleep whenever they need to. A few minutes of BOC and you’re sleeping liking a log.
It is already news bankrupt.
Under Paley a POS like Letterman would have been broomed long ago.
What could possibly be the problem?
basically they said even though CBS was not the actual employer, CBS provided the venue for these acts and it would take a decent lawyer about 10 minutes to articulate valid points as to how CBS should also be held responsible.
and in order to keep this out of the courts so all the details would be made public, they think CBS thinks it might have to pay out as much as 100 million.
Courage CBS Courage. Don’t change a thing. Stick to your guns. Courage.
So?....When will this sick fish finally go belly up?
I’ve been waiting and waiting. It’s like “Waiting for Godot”.
That's a lot of GEICO commercials to sell.
“Dave and Katie, care for a crisp?”
Why not? They’re already intellectually bankrupt.
I sincerely hope so.”
So do I.
They’ve been morally bankrupt for years ... only fitting they loose money now too ....
Hope they are and that NBC is not far behind.
Of course dependably pro-Hussein outfits must NOT be permitted to fail!
They will constantly run anything he’s teleprompted at.
We already have that.
It's called MSNBC.
Do I sense a governmental bailout coming? I remember reading where some congresscritters have also suggested a financial newspaper bailout. Talk about being under governmental control, broadcasting and printing only what the government wants.
Let’s hope See-BS IS going bankrupt!
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