The businesses include Madison Square Garden, Radio City Music Hall, the Beacon and Chicago theaters. It also includes the MSG and MSG+ cable networks. MSG Entertainment would retain ownership of the Sphere, a music venue expected to open in Las Vegas next year. It would also include the Tao Group Hospitality, a chain of restaurants and nightclubs.

MSG has long been controlled by New York’s Dolan family. Separately, they run Madison Square Garden Sports Corp., which owns basketball’s Knicks and hockey’s Rangers, among other teams. The two teams are anchor tenants in Madison Square Garden. 

Executive Chairman and Chief Executive Officer James Dolan said the transaction could create two companies with distinct value for investors. There is no guarantee the spinoff would proceed, however. 

Shares of Madison Square Garden Entertainment rose as much as 8.3% to $67.90 in extended trading. They’re down 11% this year through the close Thursday in New York, less than the 19% loss for a Russell 2000 Consumer Discretionary index.

Not a subscriber? We have options that meet your needs.

Source