Dawn Chmielewski and Greg Roumeliotis,

(Reuters) -An alliance led by Jeff Warshaw, a veteran of the U.S. radio stations industry, has proposed to purchase Cumulus Media Inc for $1.2 Billion, plus debt, according to sources familiar with this matter.

According to sources, Warshaw informed Cumulus (an Atlanta-based owner/operator of 406 radio stations), that he is willing to sell it privately for $15-17 per share.

Cumulus shares had been hovering at $11 prior to the announcement of the offer on Thursday afternoon. The shares rose by 40% to $14.21 at the close of trading

Sources added that Warshaw stated he was willing to pay higher amounts, but only if he did his due diligence. Warshaw and his consortium were not available for further details.

Sources said that it wasn’t clear how Cumulus would react to the offer, and there was no definitive deal. They asked not to be named because of the confidentiality.

Warshaw and Cumulus couldn’t be reached immediately for comment.

Cumulus also has an online platform, which ranks in the Top Five Podcast Networks in the United States. Cumulus generates most of its revenues through advertising, and as of December 31, had net long-term debt in excess of $800 million.

Connoisseur Media operates thirteen radio stations and Warshaw serves as its chief executive officer. In a deal worth $1.1 billion, Virtuoso Acquisition Corp, Warshaw’s blank check acquisition company, merged last year with Wejo Automotive Data Analytics firm.