Loading...

Possible Radio Station Company Takeover Sends Stock Soaring

April 14, 2022 by Madeline Hughes
Possible Radio Station Company Takeover Sends Stock Soaring
(Photo via Cumulus Radio)

WASHINGTON — The stock price for Cumulus Media, a company with 406 radio stations across the United States, shot up about 40% Thursday afternoon to just over $14 a share for a 52-week high.

The increased public interest came just after Reuters reported a consortium of investors led by Connoisseur Media CEO Jeff Warshaw is interested in buying the company for about $1.2 billion, including debt. Warshaw’s group would purchase the company for somewhere between $15 to $17 per share, according to the report.

A spokesperson for Cumulus confirmed the company did receive “a letter with respect to an unsolicited, non-binding, highly conditional indication of interest. Consistent with its fiduciary duties and in consultation with its financial and legal advisors, the Cumulus Board of Directors is reviewing the letter.”

This bid to acquire the radio station company comes after it had a successful year bouncing back from the COVID-19 pandemic. The company increased its full-year net income to $17.3 million in 2021 versus its net loss of $59.7 million in 2020, according to a statement from the company.

“2021 was a year of tremendous progress and accomplishment for Cumulus,” Mary Berner, president and CEO of Cumulus Media, said in a statement. “We not only achieved meaningful revenue growth in core radio, delivered substantial growth in digital, and greatly improved our operating leverage through material fixed cost reductions, but we also further and significantly de-levered our balance sheet, and executed many initiatives which bolstered our position as a true audio-first media company.

“As we carry this momentum into 2022, we continue to see significant upside with multiple pathways to enhance shareholder value,” Berner added.

This is a potential homecoming of sorts for Warshaw. He originally founded Connoisseur Communications Partners LP — a 39-station group, which he sold to Cumulus Broadcasting — while he was a student at the University of Pennsylvania’s Wharton School of Business in 1993, according to his company’s website.

Warshaw made that sale for $258 million in 2000 to the subsidiary of Cumulus Media.

In 2004 he founded his current company, Connoisseur Media, which operates 13 radio stations in four different markets including Frederick, Maryland, and three New York City suburbs.

Madeline can be reached at maddie@thewellnews.com

Media

June 30, 2022
by Madeline Hughes
Media Union Adds Opposition to Broadcast Deal

WASHINGTON — There’s increasing scrutiny on the deal that would allow 64 local news stations to be bought by the... Read More

WASHINGTON — There’s increasing scrutiny on the deal that would allow 64 local news stations to be bought by the hedge fund Standard General. Last week the NewsGuild-Communications Workers of America and National Association of Broadcast Employees and Technicians-CWA filed a petition with the Federal Communications... Read More

June 21, 2022
by Dan McCue
Colbert Addresses Staff Arrests in Capitol Hill Building

WASHINGTON — “The Late Show” host Stephen Colbert used his monologue on Monday night to address the arrests of members... Read More

WASHINGTON — “The Late Show” host Stephen Colbert used his monologue on Monday night to address the arrests of members of his field production crew last week after they were found filming in a House office building without permission or proper credentials. As previously reported by... Read More

June 18, 2022
by Dan McCue
Stephen Colbert Staffers Busted for Trespassing on Capitol Hill

WASHINGTON — Seven staffers from “The Late Show with Stephen Colbert” were arrested Thursday night for allegedly trespassing in a... Read More

WASHINGTON — Seven staffers from “The Late Show with Stephen Colbert” were arrested Thursday night for allegedly trespassing in a congressional office building near the U.S. Capitol. In an email to The Well News, U.S. Capitol Police said that at about 8:30 p.m. on June 16,... Read More

June 17, 2022
by TWN Staff
DC Chapter of SPJ Honors Best in Local Journalism

WASHINGTON — The Well News’ Dan McCue and Well News alumni H.J. Mai were among the finalists as the Washington,... Read More

WASHINGTON — The Well News’ Dan McCue and Well News alumni H.J. Mai were among the finalists as the Washington, D.C., Chapter of the Society of Professional Journalists bestowed its 2022 Dateline Awards for journalism excellence at the National Press Club Tuesday night. McCue, editor of... Read More

June 6, 2022
by Dan McCue
FTC to Overhaul Guidance on Digital Advertising

WASHINGTON — The Federal Trade Commission on Friday began the first major overhaul of its guidance for digital advertisers in... Read More

WASHINGTON — The Federal Trade Commission on Friday began the first major overhaul of its guidance for digital advertisers in nearly a decade. Last updated in March 2013, the guidance entitled “How to Make Effective Disclosures in Digital Advertising,” established a framework for advertisers to ensure... Read More

Can Musk Deliver on His Vision for Twitter? Questions Remain

Tesla CEO Elon Musk stands to be the next owner of Twitter, having pledged roughly $44 billion to buy the... Read More

Tesla CEO Elon Musk stands to be the next owner of Twitter, having pledged roughly $44 billion to buy the social platform and take it private. Assuming that happens, next up on his agenda will be planning how to fulfill his promises to develop new Twitter features, open... Read More

News From The Well