Consortium makes unsolicited offer to buy Atlanta-based Cumulus Media for $1.2 billion

A consortium of investors are seeking to buy Atlanta-based Cumulus Media for nearly $1.2 billion and take it private.

Cumulus, one of the largest radio companies in the country with 406 stations in its portfolio, owns several in Atlanta including top 40 station Q99.7, rock station 100.5 and country station New Country 101.5.

Reuters, citing unnamed sources, said current shareholders of the publicly traded company would receive $15 to $17 per share. Share prices jumped from $11 per share before the news leaked out to about $14 a share Friday morning.

A Cumulus spokesman released this statement on Friday: “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.”

The consortium is led by a radio executive Jeff Warshaw, Reuters said. Warshaw runs Connoisseur Media, which owns a handful of radio stations.

Cumulus Media was founded in 1998 by Atlanta’s Lew Dickey after the federal government loosened radio station ownership rules. Cumulus first focused on small and mid-sized markets but eventually picked up larger markets via mergers that saddled the company with debt. In 2015, the Dickey leadership was ousted amid accusations of poor management. Mary Berner has been running Cumulus ever since and morale and finances improved.

Cumulus also owns Westwood One, the syndicated arm of the company which includes talk shows by Mark Levin, Ben Shapiro and Dan Bongino.