By Stephen Nakrosis
Madison Square Garden Entertainment Corp. said Tuesday its board approved a revised plan for a potential separation of the company’s businesses.
The new plan would see the live entertainment business spun off from MSG Sphere, MSG Networks and the Tao Group hospitality businesses, the company said.
The live entertainment group would include such assets as Madison Square Garden, Radio City Music Hall and the Beacon Theatre, as well as the company’s entertainment and sports booking business. The Radio City Rockettes and the Christmas Spectacular production and long-term arena license agreements with the New York Knicks and the New York Rangers would also be included, the company said.
The remaining assets, which include MSG Sphere, MSG Networks and a majority interest in Tao Group Hospitality, would remain with the renamed MSG Sphere Corp. That company would also hold about one-third of an economic interest in the live entertainment company, according to MSG Entertainment.
James L. Dolan, the company’s executive chairman and chief executive, said, “We believe the revised spinoff structure best positions these two companies for long-term success.”
Previously, the company was considering spinning off the traditional live entertainment and MSG Networks businesses from the MSG Sphere and Tao Group Hospitality businesses. “However, after thorough evaluation, the company believes the revised plan is optimal for maximizing shareholder value, while providing both companies with enhanced strategic and financial flexibility to drive long-term growth,” it said.
Write to Stephen Nakrosis at stephen.nakrosis@wsj.com
