A Cumulus Media spokesperson has confirmed that the company had received "an unsolicited, non-binding, highly conditional indication of interest". The company' s board of director is said to be reviewing the offer from a consortium led by radio station industry veteran Jeff Warshaw. The offering reportedly is in the neighborhood of $1.2 billion, including debt.
Warshaw has informed Cumulus, an Atlanta-based owner and operator of 406 radio stations, that he would be willing to take it private for $15 to $17 per share according to published reports
In 2011, Cumulus offered $2.5B to Citadel Broadcasting for its stations.
Cumulus shares were hovering around $11 before news of the bid emerged on Thursday afternoon. They rose 40% on the news to end trading at $14.21.
Warshaw, who is the chief executive of Connoisseur Media, an operator of 13 radio stations, could not be reached for comment. Warshaw is a lifelong broadcaster. He built his first station while still a student at the Wharton School of Business at the University of Pennsylvania. In 1993 Warshaw founded Connoisseur Communications Partners LP, a 39 station group which he later sold to Cumulus Media in 2000 for $258MM. In 2004 Jeff reformed Connoisseur Media which now operates 13 radio station brands and digital assets in 5 markets in Connecticut, Maryland and New York.
Beyond its radio stations, Cumulus has a digital platform that ranks among the top five podcast networks in the United States. The company had net long-term debt of almost $800 million as of the end of December.
Cumulus is seeing strong advertising demand driven by sports betting, government, restaurants and cryptocurrency platforms, Noble Capital Markets analysts, who have a $27 price target on the stock, wrote in February. Cumulus' revenue grew 12% year-over-year in 2021, while its earnings before interest, taxes depreciation and amortization grew 66%.
Cumulus shares were hovering around $11 before news of the bid emerged on Thursday afternoon. They rose 40% on the news to end trading at $14.21.
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| Jeff Warshaw |
Beyond its radio stations, Cumulus has a digital platform that ranks among the top five podcast networks in the United States. The company had net long-term debt of almost $800 million as of the end of December.
Cumulus is seeing strong advertising demand driven by sports betting, government, restaurants and cryptocurrency platforms, Noble Capital Markets analysts, who have a $27 price target on the stock, wrote in February. Cumulus' revenue grew 12% year-over-year in 2021, while its earnings before interest, taxes depreciation and amortization grew 66%.
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