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Media

Sirius XM (SIRI) And CBS (CBS) Pose Greatest Financial Risk Among Media Firms

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Updated Published
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CBS (NYSE:CBS) and Sirius XM (NYSE:SIRI) pose the greatest investment risks among media companies based on a forensic measure of their transparency and the statistical reliability of their financial reporting and governance practices, according to new data from Audit Integrity. The probability for bankruptcy for Sirius is 8.5% and 4.6% for CBS. Both numbers are remarkably low, but still high for major US companies. Audit Integrity’s bankruptcy model achieved 90.9% accuracy in 2008 and 93.8% in 2009.

The safest companies for investors, based on the same measurement are Disney (NYSE:DIS) and  DirecTV (NYSE:DTV). The rest of the firms in the analysis are Time Warner (NYSE:TWX), Viacom (NYSE:VIA), Comcast (NYSE:CMCSA), Cablevision, (NYSE:CVC), GE (NYSE:GE), and Time Warner Cable (NYSE:TWC).

The Audit integrity analysis.

Company Ticker Market Cap Industry AGR score AGR Rating Bankruptcy
Probability		 Bankruptcy
Percentile
Sirius XM Radio Inc. SIRI 2,299.46 Broadcasting & Cable TV 6 Very Aggressive 8.54% 5
CBS Corporation CBS 8,080.33 Broadcasting & Cable TV 29 Aggressive 4.60% 9
General Electric Company GE 161,528.00 Conglomerates 1 Very Aggressive 4.46% 10
Time Warner Cable Inc. TWC 14,531.39 Broadcasting & Cable TV 28 Aggressive 2.65% 14
Cablevision Systems Corporation CVC 7,080.64 Broadcasting & Cable TV 15 Aggressive 2.03% 16
Comcast Corporation CMCSA 31,039.88 Broadcasting & Cable TV 35 Aggressive 0.78% 27
Time Warner Inc. TWX 36,493.15 Broadcasting & Cable TV 28 Aggressive 0.55% 31
Viacom, Inc. VIA.B 15,584.26 Broadcasting & Cable TV 20 Aggressive 0.13% 46
The Walt Disney Company DIS 53,693.70 Broadcasting & Cable TV 44 Average 0.02% 67
The DIRECTV Group, Inc. DTV 25,819.84 Broadcasting & Cable TV 50 Average 0.00% 82

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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