• Cumulus Media Adopts Its Own 'Poison Pill' Plan

    May 22, 2020 at 5:34 AM (PT)
  • CumulusStacked2019.jpg Poison Pill

    Like ENTERCOM and iHEARTMEDIA before it, CUMULUS MEDIA has adopted a "poison pill"  short-term shareholder rights plan to prevent a third party from taking advantage of depressed stock prices during the pandemic to stage a takeover of the company.

    The plan adopted by the board declared a dividend distribution of one right for each outstanding share of Class A or B common stock or Series 1 or 2 warrant, with a record date of JUNE 1st. The rights will only be exercisable if a third party newly acquires 10% (20% in the case of a passive institutional investor) or more of CUMULUS Class A shares, and will be convertible to Class A or B common shares or Series 1 or 2 warrants with a market value of twice the exercise price of $25 per right.

    The rights will expire on APRIL 30, 2021 or an earlier redemption or exchange of the rights.