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Madison Square Garden Company thinking about spin-off

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Staff writer ▼ | October 29, 2014
The Madison Square Garden Company announced that its board has unanimously approved a plan to explore a possible spin-off.
Madison Square Garden
Proposition   Separating entertainment from media and sports businesses
It would separate its entertainment businesses from its media and sports businesses, creating two distinct publicly traded companies. Separately, the Board has authorized the repurchase of up to $500 million of the Company's Class A common stock and announced the Company's director nominations for this year's annual meeting, including two new independent directors for election by the Company's Class A shareholders.

If the company proceeds with the spin-off transaction, it would be structured as a tax-free pro rata spin-off to all MSG shareholders. Upon completion of the contemplated spin-off, MSG shareholders would own shares in both of the new companies, which would provide shareholders with the ability to more clearly evaluate each company's businesses and prospects.

The proposed separation, which the company has been considering since July, is intended to benefit both new companies by allowing each of them to have a balance sheet, capital structure and capital return policy most appropriate for its business.

In addition to a portfolio of venues, the live entertainment company would include:

MSG booking, an established industry leader, which effectively fills MSG's venues with a wide variety of the most exciting and unforgettable events, including concerts, family shows and special events
MSG's productions, including the Radio City Christmas Spectacular, the nation's #1 live holiday family show featuring the legendary Rockettes, and New York Spring Spectacular, a new large scale theatrical production set to debut in spring 2015
MSG's first-class venue management capabilities, as well as its sponsorship, marketing, ticketing and promotional expertise and platforms
MSG's strategic entertainment joint ventures

The sports and media company would include:
MSG's professional sports franchises: the New York Knicks, the New York Rangers and the New York Liberty, along with its development teams: the Hartford Wolf Pack and the Westchester Knicks
MSG's award-winning regional sports networks, MSG Network and MSG+
MSG's interest in SiTV Media Inc., the parent company of NUVOtv and Fuse networks
There can be no assurance that the spin-off transaction will be completed. The Company has not set a timetable for completion of this process.


 

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