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Madison Square Garden to spin-off sports and entertainment

Staff writer ▼ | March 30, 2015
The Madison Square Garden Company (MSG) filed a form with SEC to separate its businesses into two publicly traded companies.
New path   Sports and entertainment to separate from MSG
The planned separation would be structured as a tax-free spin-off of the sports and entertainment business to MSG shareholders on a pro rata basis. The transaction is currently expected to be completed during 2015, subject to certain conditions.

After review, MSG's Board of Directors believes that, while MSG has created significant shareholder value since it was established as a public company five years ago, separating MSG's live sports and entertainment businesses from its media business now would further enhance the long-term value-creation potential of both businesses.

While the companies would continue to benefit from commercial arrangements between them, the separation would provide each company with increased strategic flexibility to pursue its own distinctive business plan and allow each to have a capital structure and capital return policy that is appropriate for its business.

Upon completion of the spin-off, MSG shareholders would own shares in both companies and have the ability to evaluate each company's current business and future prospects in making investment decisions.

The live sports and entertainment company would comprise a portfolio of celebrated venues, legendary sports teams. The media company would continue to distribute exclusive, award-winning sports and entertainment content across multiple platforms, including MSG Network and MSG+.