Warshaw Offers $1.2 Billion To Buy Cumulus

• UPDATED: Reuters reports that a consortium led by Jeff Warshaw, Founder & CEO of Connoisseur Media has made an offer to acquire Cumulus Media for close to $1.2 billion, including debt.

Warshaw has reportedly told Cumulus that he would be willing to take the company private for $15 to $17 per share. Cumulus shares had been hovering just under $11 before news of the bid emerged on Thursday afternoon, and shot up nearly 40% to over $14 per share after the news broke. Warshaw indicated he would be willing to pay more, subject to due diligence, sources added.

Further details on Warshaw’s consortium could not be learned; however, Reuters notes that Warshaw’s blank-check acquisition firm (SPAC) Virtuoso Acquisition Corp merged with automotive data analytics firm Wejo last year in a $1.1 billion deal.

Connoisseur Media currently owns 13 radio stations, while Atlanta-based Cumulus owns and operates 406 radio stations.

• A spokesperson for Cumulus Media commented, “Cumulus Media confirmed receipt of 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.”