Madison Square Garden Entertainment said Thursday it would explore the possibility of spinning live entertainment venues and a slew of other assets into a separate company.
As part of a potential spinoff, MSG Entertainment would retain its “immersive” MSG Sphere sites and majority stake in dining and nightlife company TAO Group Hospitality, according to a company press release.
The potential separate company, meanwhile, would get the sports and entertainment bookings, as well as the Radio City Rockettes, famed Christmas holiday production and arena licensing deals with the New York Knicks and New York Rangers. , according to the press release. MSG Entertainment’s signature entertainment venues in New York – Madison Square Garden, Radio City Music Hall, the Beacon Theater and the Hulu Theater at Madison Square Garden – would also transfer to the new company.
MSG Networks, which MSG Entertainment finished acquiring in July 2021, would also fall under the potential separate company if the spin-off goes ahead, the statement said. It consists of the regional networks MSG Network and MSG+ and the MSG GO streaming app.
“This potential transaction would create two companies, each with a distinct value proposition for investors,” MSG Entertainment CEO James Dolan said in the statement.