May 26 was a banner day for Cumulus Media, as investors reacted positively to a short-term shareholder rights plan designed to stave off a hostile takeover by an entity seeking to take advantage of its abnormally low share value.
By 2:10pm, shares rocketed as high as $6.32 before cooling off somewhat. Still, a 25.2% gain was seen before a small after-hours dip.
As of 4:07pm, CMLS was priced at $5.26, down 5 cents from a $1.07 gain to $5.31.
It’s the best finish for Cumulus since March 31, and came on volume of 938,217 shares; average volume is 151,779.
What prompted the big jump in share value? Call it a “poison pill.” Call it fortifying the moat against an invasion on the C-Suite and corporate castle. Short-term shareholder rights plans have emerged at three of the nation’s biggest audio media companies, with the latest one to emerge coming early Friday (5/22) from Cumulus Media.
