Madison Square Garden Co. may split in two, separating sports and entertainment businesses

madison square garden co may split in two separating sports and entertainment businesses
Madison Square Garden Co. may split in two, separating sports and entertainment businesses


Madison Square Garden to examine splitting business into two

Madison Square Garden Co. said late Wednesday that the board approved plans to examine spinning-off its sports businesses that include the New York Knicks and New York Rangers into a separate publicly traded company. Madison Square Garden stock is up 1.8% in the extended session after closing down 2% to $266.23 during regular trading. “We are exploring the opportunity to further create value by separating our businesses into two distinct companies,” Chief Executive James Dolan and is expected to be executive chairman and CEO of both organizations, the company said in a statement. “We believe this proposed transaction would provide each company with enhanced strategic flexibility, its own defined business focus and clear investment characteristics.” The company said the transaction would be tax-free for shareholders, who would receive proportional distribution expected to be equivalent to two-thirds of the sports spin-off. The live entertainment company is expected to include venues such as New York’s Madison Square Garden, its sports bookings unit, a one-third interest in the sports spin-off and about $1 billion in cash on hand. Madison Square Garden shares are up 26% this year, as the S&P 500 index has gained 1%.

Read on Market Watch

Author: HEDGE

Hedge Accordingly was founded ahead of the global financial crisis in January of 2008, with the goal of providing our readers our unique take on The Latest News on Wall Street, Stocks, #Politics and Business news. Hedge Accordingly produces both original, and aggregated #Wallst news content from top publishers around the world. We curate aggregated content covering the latest news on politics, stocks, wall street, and the tech industry. We also provide free stock charting, quotes and a bitcoin, forex and currency exchange. Learn More About