MSG (Madison Square Garden) Entertainment announced it is considering spinning off venues like Madison Square Garden and Radio City Music Hall into two separate companies.
Madison Square Garden Entertainment Corp. (MSG Entertainment) is a leader in live entertainment. The Company presents or hosts a broad array of events in its diverse collection of venues: New York’s Madison Square Garden, Hulu Theater at Madison Square Garden, Radio City Music Hall and Beacon Theatre; and The Chicago Theatre.
Under the possible spinoff, the company would retain its “immersive” MSG Sphere venues and its majority interest in the dining and nightlife company TAO Group Hospitality. The potential transaction would provide shareholders with greater investment choice and visibility into each company’s businesses and growth prospects
This potential transaction would create two companies, each with a distinct value proposition for investors.
MSG Entertainment CEO James Dolan
The entertainment venues will get spun off to the new firm, and would also get the sports and entertainment bookings including the Radio City Rockettes, the famous Christmas holiday production, and arena licensing agreements with the New York Knicks and the New York Rangers.
MSG Networks would fall under the potential separate company as well. It consists of regional networks MSG Network and MSG+ and the streaming app MSG GO.
The spin-off is still proposed and in the works, and investors are eagerly waiting for a final agreement.
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