Warshaw-led consortium in $1.2 bln bid for Cumulus Media-sources

Cumulus Media

14/04/2022 21:18

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    By Greg Roumeliotis and Dawn Chmielewski
    April 14 (Reuters) - A consortium led by U.S. radio station
industry veteran Jeff Warshaw has offered to acquire Cumulus
Media Inc  CMLS.O  for close to $1.2 billion, including debt,
people familiar with the matter said on Thursday.
    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, the sources said. 
    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 indicated he would be willing to pay more, subject
to due diligence, the sources added. Further details on
Warshaw's consortium could not be learned.
    It was unclear how Cumulus would respond to the offer and no
deal was certain, the sources said, asking not to be identified
because the matter was confidential.
    Warshaw and Cumulus could not immediately be reached for
comment.
    Beyond its radio stations, Cumulus has a digital platform
that ranks among the top five podcast networks in the United
States. The company generates the majority of its revenue
through advertising and had net long-term debt of almost $800
million as of the end of December.  
    Warshaw is the chief executive of Connoisseur Media, an
operator of 13 radio stations. His blank-check acquisition firm
Virtuoso Acquisition Corp  VOSO.O  merged with automotive data
analytics firm Wejo last year in a $1.1 billion deal. 

 (Reporting by Greg Roumeliotis in New York and Dawn Chmielewski
in Los Angeles; Editing by Howard Goller)
 ((Greg.Roumeliotis@thomsonreuters.com; +1 646 223 6022; Reuters
Messaging: greg.roumeliotis.thomsonreuters.com@reuters.net))