Cumulus CEO Promises Operational Stability

Cumulus Media has cleared its final major obstacle to exiting bankruptcy after the FCC approved the transfer of control of its broadcast licenses to new shareholders. The approval follows a pledge by President and CEO Mary Berner to maintain current newsroom staffing levels for at least two years. FCC records show the lead application was granted days after Cumulus sent a letter to Chairman Brendan Carr on August 14 reaffirming its public-interest commitments.

The decision allows Cumulus’s new ownership structure to take effect. Alden Global Capital President Heath Freeman will hold a 31.86% voting interest in the reorganized company through Next Gen Radio Enterprises LLC. 

Freeman has faced criticism in the newspaper industry for aggressive staff cuts at Alden-owned publications.

In the letter, Berner addressed concerns that Alden might pursue similar reductions at Cumulus stations, writing: “I take this opportunity to reaffirm Cumulus Media’s longstanding commitment to operating its broadcast radio stations in a manner that serves the public interest, advances localism, supports public safety and responds to the needs and interests of the communities it is privileged to serve.”

The pledge specifically covers only newsroom staffing, leaving open questions about potential changes in non-news programming, sales, and other departments.

Mary Berner

Cumulus filed a prepackaged Chapter 11 bankruptcy in March; a federal judge approved its reorganization plan in April. Berner said the restructuring is intended to strengthen the company’s financial foundation and improve its ability to serve listeners, employees, advertisers, community partners, and public-safety stakeholders. “We view this work not as ancillary to our business but as central to our responsibilities as a broadcast licensee,” she added.

Over the past three years, Cumulus reported working with nearly 2,000 local organizations and generating more than $123 million in direct donations and community support. That total includes over $75 million raised through fundraising drives and radiothons, nearly $50 million via public-service announcements and on-air mentions, more than 400,000 individual on-air acknowledgments, and nearly 200,000 digital posts.

During the reporting of this story, the letter appeared to have been removed from the FCC’s Licensing and Management System for an unknown reason. Streamline Publishing has contacted attorneys representing Cumulus Media.