Cumulus Media Inc. CMLS, +39.86%, which owned 406 radio stations as of March, confirmed that it has received a non-binding and “highly conditional indication of interest” after Reuters reported that a consortium led by Jeff Warshaw had offered to buy Cumulus.
A Cumulus spokesperson said that “consistent with its fiduciary duties and in consultation with its financial and legal advisers,” the board is reviewing the letter.
The Reuters report, which cited sources, said Warshaw told Cumulus he would be willing to pay $15 to $17 per share, with a potentially higher price subject to due diligence.
Shares rose 3% after hours to $14.70, following a 40% surge during the regular session.
Warshaw founded Connoisseur Communications Partners and later Connoisseur Media, which runs 13 radio stations, according to its website, and declined to comment. Its holdings include Long Island’s KJOY and WALK.
Warshaw’s blank-check company Virtuoso Acquisition Corp. WEJO, -2.10% merged with Wejo, a connected vehicle data company. In November, his Virtuoso Acquisition Corp. 2 VUSOU, filed for an initial public offering.
One of the nation’s top owners of traditional radio stations, Cumulus also owns content provider Westwood One and has expanded in areas such as podcasting. In February, it said 2021 digital revenue was more than $125 million, up 48%.
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