Madison Square Garden Co. To Split In Two
March 30, 2015 at 3:55 AM (PT)
The MADISON SQUARE GARDEN CO. has filed its plan to split into two companies, one including the sports and live entertainment business and the other including media operations, with the SEC.
The former would include the NEW YORK KNICKS, RANGERS, and LIBERTY, the HARTFORD WOLF PACK and WESTCHESTER KNICKS minor league teams, MADISON SQUARE GARDEN and THE THEATER AT MADISON SQUARE GARDEN, THE FORUM in INGLEWOOD, CA, the BEACON THEATER in NEW YORK, RADIO CITY MUSIC HALL, the CHICAGO THEATER, BOSTON's WANG THEATER, live show production, the arena management company, and a stake in FUSE.
The latter would include regional sports cable networks MSG NETWORK and MSG+.
A statement issued FRIDAY read, "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."