Movers and SHAKERS
Cumulus Media Inc. (CMLS)
Why Was The Company Seeking To Lift Foreign Ownership Rules?
CUMULUS MEDIA, Inc. (NASDAQ: CMLS) is a leading audio-first media and entertainment company delivering premium content to over a quarter billion people every month — wherever and whenever they want it. CUMULUS MEDIA engages listeners with high-quality local programming through 428 owned-and-operated stations across 87 markets; delivers nationally-syndicated sports, news, talk, and entertainment programming from iconic brands including the NFL, the NCAA, the Masters, the Olympics, the GRAMMYS, the American Country Music Awards, and many other world-class partners across nearly 8,000 affiliated stations through Westwood One, the largest audio network in America; and inspires listeners through its rapidly growing network of original podcasts that are smart, entertaining and thought-provoking. CUMULUS MEDIA provides advertisers with local impact and national reach through on-air, digital, mobile, and voice-activated media solutions, as well as access to integrated digital marketing services, powerful influencers, and live event experiences. CUMULUS MEDIA is the only audio media company to provide marketers with local and national advertising performance guarantees.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
FCC Lifts Foreign Ownership Rules. The FCC recently lifted the Foreign Ownership rules from 25% to 100%, a significant "win" for Cumulus. In the past, Foreign companies were prohibited from owning a large stake in U.S. based media companies.
What does this mean? Cumulus issued warrants to debt holders as a part of its bankruptcy reorganization in 2018. The company did not certify that the special warrants were 100 percent U.S. owned and controlled. The recent FCC move allows those companies to convert the warrants into voting common stock. Upon the execution of the warrants, Cumulus estimated that foreign entities would control 34 percent on a voting basis and 31 percent on an equity basis. This move also allows...
This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.