Last month, Connoisseur Media CEO Jeff Warshaw made an unsolicited offer to purchase Cumulus Media for $15-$17 per share. Now in a letter to shareholders released alongside today’s Q1 financial report, the company’s board of directors has officially rejected the takeover offer.
In the letter, Cumulus President/CEO Mary G. Berner writes, “The Company recently received an indication of interest in acquiring the Company for $15.00 to $17.00 per share. 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.
The Company’s Board is open to all paths that continue to 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. Given these facts and circumstances, the Board unanimously believes execution of the Company’s strategy will deliver significantly more value to shareholders than this indication of interest.”
