I started out this afternoon by running into tech ticker's Top Ten List of BIG Companies Facing Bankruptcy, which included a few surprises, like Hertz, Goodyear tire, and - oops! - CBS. O yes.
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.
I wouldn't worry too much. $3.2BIL is just about what the CIS franchise alone will make over the next five years. Still, the thought that traditional tv might be dead is delicious even if it is 50 years too late.