Radio giant Cumulus Media is “on the brink of a total collapse,” according to a report this week in The New York Post.
“When former Chief Executive Lew Dickey exited in September 2015, the stock was already an anemic $5.45. On Friday, Cumulus shares closed at 52 cents,” The Post reports, noting that as recently as early 2014 the company’s stock was trading at $64.04.
“Now things are in tatters, and a Nasdaq delisting looms — as does a possible bankruptcy,” The Post reports. “Meanwhile, current CEO Mary Berner keeps receiving bonus payments, which are now being paid on a quarterly basis instead of the typical end-of-year cycle, perhaps learned from her bankruptcy with Reader’s Digest.”
In a statement provided to The Post, the company paints a much more rosy picture of its situation: “Cumulus continues to make tremendous progress in our multi-year turnaround, having reached a financial inflection point driven by ratings share growth, stabilization of the operations, and sustained outperformance against peers despite a tough market environment.”
The report notes that Cumulus owns hundreds of radio stations along with the syndication company Westwood One. Its competitors include iHeart and CBS Radio.