NEW YORK – (AFTERNOON PRAYER) – Added by iHeartMedia, Inc. (Nasdaq: IHRT) issued the following statement today regarding the approval of upcoming iHeartMedia applications to acquire certain radio stations, and the temporary shareholder restrictions that the FCC must impose on Global Media & Entertainment Investments Ltd (“GMEI”) in connection with these licenses:
“IHeartMedia values stakeholder relationships and we welcome new shareholders to iHeartMedia. However, as GMEI is a foreign shareholder, the recent investment was inconsistent with FCC foreign ownership regulations and created an operational case for us under the FCC regulatory framework.
As a background, the purchase of GMEI of 8.7% position in our Class A common stock, as reported in its 13D index by the Securities and Exchange Commission on February 5, 2021, caused a breach of ownership rules foreign the FCC and 5 November the FCC. , 2020 certification rule related to the company’s foreign ownership, which both limits a foreign investor in a GMEI position to 5% without prior FCC approval. To address this issue, where iHeartMedia had no prior knowledge or control, we submitted a medical petition for certification management seeking FCC approval for GMEI to increase their ownership capacity by up to 9.99% ( the ‘Petition’).
Despite GMEI’s investment, the FCC has received approval from iHeartMedia of certain stations, including stations for BIN: Black Information Network. However, the FCC has demanded that the company impose temporary restrictions on shareholders on GMEI as a condition of allowing the acquisition of radio stations.
To comply with the FCC’s order, the iHeartMedia Board of Directors decided to act in accordance with the FCC’s conditional requirements. These actions include the imposition of provisional voting and restrictions on the shareholders of GMEI involved at the time of the petition and which are set out in detail in the decision of the petitioner. FCC available at https://docs.fcc.gov/public/attachments/ DA-21-360A1.pdf and in our 8-K file on Friday, March 26, 2021.
IHeartMedia respects the FCC process and will, as a matter of consistent policy, ensure that the company complies with FCC foreign ownership and other regulations. ”
About iHeartMedia, Inc.
IHeartMedia, Inc. (Nasdaq: IHRT) the leading audio media company in America, reaching more than 250 million people per month. It is the largest number in radio broadcast and streaming as well as podcast and tech ad audio, and consists of three divisions: iHeartMedia Multiplatform Group; IHeartMedia Digital Audio Group; and the Audio and Media Services Group.