Exclusive-Warshaw-led consortium in $1.2 billion bid for Cumulus Media -sources
By Greg Roumeliotis and Daybreak Chmielewski
(Reuters) -A consortium led by U.S. radio station trade veteran Jeff Warshaw has supplied to accumulate Cumulus Media Inc for near $1.2 billion, together with debt, individuals conversant in the matter mentioned on Thursday.
Warshaw has knowledgeable Cumulus, an Atlanta-based proprietor and operator of 406 radio stations, that he could be prepared to take it personal for $15 to $17 per share, the sources mentioned.
Cumulus shares have been hovering round $11 earlier than information of the bid emerged on Thursday afternoon. They rose 40% on the information to finish buying and selling at $14.21
Warshaw indicated he could be prepared to pay extra, topic to due diligence, the sources added. Additional particulars on Warshaw’s consortium couldn’t be discovered.
It was unclear how Cumulus would reply to the supply and no deal was sure, the sources mentioned, asking to not be recognized as a result of the matter was confidential.
A Cumulus spokesperson confirmed that the corporate had obtained “an unsolicited, non-binding, extremely conditional indication of curiosity” and that its board of administrators was reviewing it alongside its monetary and authorized advisers.
Warshaw, who’s the chief government of Connoisseur Media, an operator of 13 radio stations, couldn’t instantly be reached for remark.
Past its radio stations, Cumulus has a digital platform that ranks among the many high 5 podcast networks in the USA. The corporate had web long-term debt of just about $800 million as of the top of December.
Cumulus is seeing sturdy promoting demand pushed by sports activities betting, authorities, eating places and cryptocurrency platforms, Noble Capital Markets analysts, who’ve a $27 value goal on the inventory, wrote in February. Cumulus’ income grew 12% year-over-year in 2021, whereas its earnings earlier than curiosity, taxes depreciation and amortization grew 66%.
Warshaw’s blank-check acquisition agency Virtuoso Acquisition Corp merged with automotive information analytics agency Wejo final 12 months in a $1.1 billion deal.
(Reporting by Greg Roumeliotis in New York and Daybreak Chmielewski in Los Angeles; Enhancing by Howard Goller and Leslie Adler)
