MSG Entertainment exploring potential spinoff of Madison Square Garden and Radio City Music Hall
The potential spinoff would involve iconic New York City venues
Madison Square Garden Entertainment said Thursday that it will explore potentially spinning off live entertainment venues and a bevy of other assets into a separate company.
Under the possible spinoff, MSG Entertainment would retain its "immersive" MSG Sphere venues and its majority interest in the dining and nightlife company TAO Group Hospitality, according to a company press release.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MSGE | MADISON SQUARE GARDEN ENTMT CORP | 36.99 | +0.35 | +0.96% |
The potential separate company, meanwhile, would get the sports and entertainment bookings, as well as the Radio City Rockettes, the famous Christmas holiday production and arena licensing agreements with the New York Knicks and the New York Rangers, according to the release. MSG Entertainment's iconic New York City entertainment venues — Madison Square Garden, Radio City Music Hall, the Beacon Theatre and the Hulu Theater at Madison Square Garden — would also get spun off to the new firm.
A performance of the Christmas Spectacular at Radio City Music Hall in New York on Nov. 25, 2019. (AP Photo/Craig Ruttle)
MSG Networks, which MSG Entertainment finished acquiring in July 2021, would fall under the potential separate company as well if the spinoff comes to fruition, the release stated. It consists of regional networks MSG Network and MSG+ and the streaming app MSG GO.
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"This potential transaction would create two companies, each with a distinct value proposition for investors," MSG Entertainment CEO James Dolan said in the release.