Connoisseur Media CEO Jeff Warshaw’s unsolicited offer to purchase Cumulus Media has been rejected by its board of directors. According to Inside Radio, Cumulus felt that Warshaw’s offer was too low.
On Wednesday, Cumulus Media CEO Mary Berner told shareholders in a letter that the board’s unanimous decision determined Warshaw’s offer “significantly undervalued” the company.
“After a careful and thorough review, conducted in consultation with our financial and legal advisors, the Board unanimously concluded that the indication of interest significantly undervalues the Company and is not in the best interests of its shareholders.”
According to Reuters, Cumulus saw its stock price jump about 40% following the Warshaw offer. Berner said Cumulus remains open to any other offers that may “drive superior shareholder value.”
“Our strong momentum across business lines, multiple digital revenue growth drivers, operational efficiency and superior cash flow provide the Company with substantial untapped upside that it expects to continue to realize on behalf of its shareholders,” she added.
Warshaw’s Connoisseur Media owns and operates 13 radio stations in Maryland, New York, and Connecticut. In 2019, Connoisseur Media executed an asset exchange with Cumulus. In the deal, Connoisseur acquired two radio stations in Southern Connecticut, including news/talk brand WICC in Bridgeport, Connecticut.
Warshaw reportedly was willing to pay more than its initial bid, a move that would require Cumulus Media to open its books
