Before reporting earnings, Cumulus CEO Mary Berner addressed the $340 million offer made by Jeff Warshaw to purchase the company. The “indication of interest” for $15.00 to $17.00 per share was rejected. Here’s the letter Berner released…
“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.
“We look forward to updating you on our progress as we continue to deliver value for Cumulus shareholders.”
Best Regards,
Mary G. Berner
Cumulus Media’s President and Chief Executive Officer
