Weeks after Cumulus Media allowed its poison pill provision to expire, Singapore-based Renew Group Private Ltd. has begun selling off significant shares of the broadcaster, according to a new SEC filing.
The March 27 filing details a series of recent sales made on the open market. Between February 28 and March 27, Renew Group sold more than 214,000 shares of Cumulus stock, with prices ranging from $0.48 to $0.83 per share. The heaviest activity came March 26 and 27, when Renew sold over 160,000 shares in just two days.
The sale follows a months-long standoff that saw Cumulus implement a shareholder rights plan – commonly referred to as a “poison pill” – in early 2024 designed to block Renew, or any shareholder, from acquiring more than 15% of the company’s Class A stock without triggering a dilution mechanism.
At the time, Renew Group, led by billionaire Manoj Bhargava, held just over 10% of the company and disclosed its intent to grow its ownership to 20%. After the selloff, Renew now holds 1,427,033 shares of Cumulus Class A Common Stock, representing an 8.28% stake in the company.
Bhargava and Renew Group had gained attention after a rapid and controversial takeover of Sports Illustrated parent company The Arena Group. In less than six months, Bhargava’s group acquired a majority stake, replaced the executive team, missed key debt payments, and oversaw sweeping layoffs at the legacy sports title. That upheaval prompted renewed scrutiny of Bhargava’s media ambitions when Renew began accumulating shares of Cumulus.
Cumulus Board Chairman Andrew Hobson said in the original announcement that the plan was designed to “ensure that all shareholders receive fair and equal treatment in the event of any proposed takeover.”
With Renew now reducing its position, Cumulus appears to have fully defused the takeover threat, at least for now. In the SEC filing, Renew Group stated that it “intends to monitor the performance and corporate governance of the Company” and “may, at any time and from time to time, review or reconsider its positions.”
Why would they want this on life support broadcaster? What would they do with this cadaver if they unfortunately ended up with it? Makes one wonder.
Interesting move by Renew Group. Looks like the poison pill strategy did its job in deterring a takeover — at least for now. Will be interesting to see if Renew continues to back away or repositions later on. Definitely one to watch.
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