Exclusive-Warshaw-led consortium in $1.2 billion bid for Cumulus Media-sources By Reuters

By Greg Roumeliotis and Dawn Chmielewski

(Reuters) -A consortium led by U.S. radio station industry veteran Jeff Warshaw has offered to acquire Cumulus Media (NASDAQ:) Inc for close to $1.2 billion, including debt, people familiar with the matter said on Thursday.

Warshaw has informed Cumulus, an Atlanta-based owner and operator of 406 radio stations, that he would be willing to take it private for $15 to $17 per share, the sources said.

Cumulus shares were hovering around $11 before news of the bid emerged on Thursday afternoon. They rose 40% on the news to end trading at $14.21

Warshaw indicated he would be willing to pay more, subject to due diligence, the sources added. Further details on Warshaw’s consortium could not be learned.

It was unclear how Cumulus would respond to the offer and no deal was certain, the sources said, asking not to be identified because the matter was confidential.

Warshaw and Cumulus could not immediately be reached for comment.

Beyond its radio stations, Cumulus has a digital platform that ranks among the top five podcast networks in the United States. The company generates the majority of its revenue through advertising and had net long-term debt of almost $800 million as of the end of December.

Warshaw is the chief executive of Connoisseur Media, an operator of 13 radio stations. His blank-check acquisition firm Virtuoso Acquisition Corp merged with automotive data analytics firm Wejo last year in a $1.1 billion deal.