(Reuters) -A consortium led by U.S. radio station industry veteran Jeff Warshaw has offered to acquire Cumulus Media Inc for close to $1.2 billion, including debt, people familiar with the matter said on Thursday.<\/p>\n
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.<\/p>\n
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<\/p>\n
Warshaw indicated he would be willing to pay more, subject to due diligence, the sources added. Further details on Warshaw\u2019s consortium could not be learned.<\/p>\n
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.<\/p>\n
Warshaw and Cumulus could not immediately be reached for comment.<\/p>\n
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.<\/p>\n
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.<\/p>\n