Cumulus Media Reviewing Offer Made by Jeff Warshaw
Cumulus saw its stock price jump about 40% following the Reuters report.
Connoisseur Media CEO Jeff Warshaw made headlines a couple of days ago when a reported offer to buy Cumulus Media surfaced.
Warshaw reportedly floated a proposal to purchase the company for between $300 and $340 million. Radio Ink provided a statement made by Cumulus regarding the offer they have on the table.
“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 statement said.
Cumulus saw its stock price jump about 40% following the Reuters report. The reported Warshaw bid is for $15 to $17 per share. The stock price had been treading ahead in the $10-$11 range for the past year.
Furthermore, the report also stated that Warshaw might be keen to spend more for the company once he looks closer at the books. Radio Ink also spoke to financial experts, who said that Cumulus has two options.
“The Cumulus Board of Directors could ignore the offer and continue to operate as is, or they could engage with Warshaw and allow a possible sale move to the next step,” Radio Ink wrote.
“Everyone we spoke to believes it’s prudent for the shareholders of the company that the Board at least take a look at this offer or justify why it did not engage.”
Cumulus’ Board of Directors is made up of:
Andy Hobson (Innovatus Capital)
David Baum (former investment banker)
Mathew Blank (former CEO of Showtime Networks)
Tom Castro (Founder and CEO of El Dorado Capital)
Joan Gillman (former cable executive)
Brian Kushner (FTI Consulting)
Mary Berner (CEO of Cumulus)
Eduardo Razo is the Assistant Content Editor for BNM, which includes writing daily news stories on the news media industry. He can be found on Twitter @eddierazo_ or you can reach him by email at email@example.com.
Bob Pittman: iHeartMedia Won’t Be Shutting Down Broadcast Stations
“90% of Americans listen to iHeart broadcast radio stations every month. To put that in context, the biggest TV network reaches less than 40% of Americans and the big streaming music services reach less than 30%.”
Very few large broadcasting corporations adopted digital platforms as quickly as iHeartMedia did. iHeartRadio is one of the most popular platforms for streaming content from a variety off stations. Bob Pittman says that does not mean the company does not see plenty of value in traditional broadcast radio.
Lydia Moynihan of The New York Post spoke with the iHeartMedia CEO Friday morning. She asked Pittman if he could foresee a day when the company would be done with terrestrial radio and focus solely on digital products.
“To the contrary – the strength and foundation of our company is our broadcast radio stations,” Pittman responded. “90% of Americans listen to iHeart broadcast radio stations every month. To put that in context, the biggest TV network reaches less than 40% of Americans and the big streaming music services reach less than 30%.”
He added that any success that the company has seen with podcasting or streaming is clearly linked to the success of the its radio stations. He said that is true for its live events too.
“We use that massive and unique reach of our broadcast radio to build complementary products like the iHeartRadio digital service and our major events like the iHeartRadio Music Festival, the iHeartRadio Music Awards and the iHeartRadio Jingle Ball Tour, and it’s why we’re the #1 podcast publisher by a lot. It all starts with using the trusted voices on our broadcast radio stations and creating demand – and with our unparalleled reach we have quite an advantage over the other audio players, regardless of their cash war chests.”
Buffalo, Chicago, Milwaukee Top Markets for AM Radio
“The study shows thirteen markets that have at least 40% of listeners using AM radio. Ten of them are in the Midwest.”
Nielsen has looked at information from the 2022 fall book to determine where AM radio is the most popular. The company released a list Thursday of 141 markets where at least 20% of radio listeners tune to AM radio in a given month. Cities in the Great Lakes region are all at the top of the list.
In Buffalo, 56% of radio listeners use the AM band in a month. The market’s most-listened to stations are both AM stations owned by Audacy – news/talk WBEN and sports talker WGR. Neither has an FM simulcast.
There is a tie for second place. 48% of listeners in Chicago utilize AM. Popular news stations WGN and WLS are both only available on AM as is the market’s heritage sports talk brand, 670 The Score. Milwaukee is the other market with 48% of listeners using AM radio.
AM radio remains very popular in the Midwest. The study shows thirteen markets that have at least 40% of listeners using AM radio. Ten of them are in the Midwest.
Last month, Nielsen used numbers from the 2022 Fall book to show that across the country, more than 82 million people rely on AM radio during a month. That is a third of all terrestrial radio listeners.
A hearing on Sen. Ed Markey’s AM For Every Vehicle Act is scheduled for Wednesday on Capitol Hill.
Fox News Radio Reportedly Facing Cutbacks
“Freelance shifts still exist on the network and current freelancers have been offered other opportunities over the weekend. Staff employees were not impacted.”
According to All Access, Fox News Radio is tightening the belt a bit. Job cuts and staff reassignments are on the way.
Most of the effected positions are filled by freelancers. Reporters and fill-in hosts could be effected.
“Fox News Audio has reduced the number of freelance shifts and adjusted its workflow on weekends,” a source told Perry Michael Simon. “Freelance shifts still exist on the network and current freelancers have been offered other opportunities over the weekend. Staff employees were not impacted.”
One full-time staffer has confirmed that he is out. News anchor Kerin McCue had been with Fox News Radio since 2012. He told All Access that he will exit some time this month. The report does not say if that is the result of these cutbacks or McCue’s own decision.
The network does have a lower-cost plan for the weekend. Some repurposed content from SiriusXM’s Fox News Headlines 24/7 will fill newscast slots.