NEW YORK (CelebrityAccess) — Madison Square Garden Entertainment revealed to investors that it will proceed with plans for a spin-off of its live entertainment business with an eye towards completing the deal by the end of March 2023.
Following the proposed spin-off, the live entertainment and media company would include:
Madison Square Garden, The Hulu Theater at Madison Square Garden, Radio City Music Hall, the Beacon Theatre and The Chicago Theatre.
MSGE’s entertainment and sports bookings business, including its portfolio of concerts, family shows, sports and special events.
The Radio City Rockettes and the Christmas Spectacular production
Arena License Agreements with the New York Knicks and New York Rangers at Madison Square Garden
MSG Networks, which includes two regional sports and entertainment networks – MSG Network and MSG+, as well as a companion streaming app, MSG GO and includes exclusive local live games for five NBA and NHL franchises.
The revised transaction would be structured as a tax-free spin-off to all MSGE shareholders, with record holders of MSGE Class A and Class B common stock receiving a pro-rated distribution, which is expected to be equivalent, in aggregate, to a 67% stake in the entertainment company.
Completion of the transaction remains subject to various conditions, including effectiveness of the Amended Form 10 Registration Statement, certain league and other approvals, receipt of a tax opinion from counsel and final Board approval.
