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iHeartMedia Agreements re: Nielsen Approved

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The U.S. Bankruptcy Court approved iHeartMedia’s motion for entry of an order authorizing the Debtors to assume the Nielsen agreements. As previously reported, “The Nielsen Agreements are an essential building block of the Debtors’ radio broadcasting business.

Without access to Nielsen’s radio ratings and audience measurement analytics, the Debtors would be unable to (a) provide their advertising customers with the necessary information to purchase advertising spots, (b) measure ratings for advertisements following their airing in order to determine the necessity of any further obligations of the Debtors to the applicable advertiser, and (c) appropriately target their programming and content to listeners…The Nielsen Agreements, therefore, directly support the Debtors’ primary revenue stream of selling advertising time to advertisers and are consequently responsible for the vast majority of the Debtors’ revenue, which was approximately $3.58 billion in 2017. Moreover, because there is no substitute available in the market for the services Nielsen provides, if the Debtors do not assume the Nielsen Agreements, substantially all of their major revenue-generating operations could grind to a halt. Such a result would cripple the Debtors’ business, ultimately causing substantial harm to all stakeholders of the Debtors…in order to assume the Nielsen Agreements and continue supporting their primary revenue streams, the Debtors agree to cure all prepetition amounts owed under the Nielsen Agreements that are past due, including not less than approximately $9,733,389.25 related to prepetition services (the ‘Cure Amount’). The Debtors will also continue to pay all other amounts owed pursuant to the Nielsen Agreements as they come due in the ordinary course of business, whether arising prepetition or postpetition.”

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