What Will the Madison Square Garden Company Be Worth Post-Split?
Madison Square Garden is an iconic New York City landmark and a coveted performance venue for professional athletes and performers alike. That's what makes The Madison Square Garden Company (NYSE: MSG) so distinctive. Not only does it own world-renowned sites like its namesake as well as Radio City Music Hall, the Beacon Theatre, the Forum in L.A., and The Chicago Theatre, it's also home to legendary sports franchises the New York Knicks and the New York Rangers. Recently, though, the company approved plans to break apart its portfolio. What does this mean for investors?
Image source: Getty Images.
On Dec. 3, Madison Square Garden's board approved its proposal to spin off its entertainment businesses into a separately traded public company during the first calendar quarter of 2020. Executive Chairman and CEO James L. Dolan believes the spinoff makes sense because it "...would create two distinct companies for MSG shareholders, each with a defined business focus and clear investment characteristics. One company would be a leader in live entertainment that would take advantage of significant opportunities to grow rapidly within the changing entertainment landscape. The other entity would be a sports company with marquee assets that would enjoy steady growth and strong free cash flow."
Source Fool.com
