MSGE - Madison Square Garden Entertainment board approves spin-off of traditional live entertainment business

2023-03-30 07:38:46 ET

• Madison Square Garden Entertainment ( NYSE: MSGE ) board approved the spin-off of its traditional live entertainment business, which is expected to be completed on Apr.20.
• On completion of the transaction, the current parent company will be renamed Sphere Entertainment and will consist of Sphere, MSG Networks and Tao Group Hospitality businesses.
• The newly formed live entertainment company will take on the name Madison Square Garden Entertainment and will include a diverse collection of performance venues, the entertainment and sports bookings business.
• Post the spin-off, Sphere Entertainment will own ~33% of the outstanding shares of the new live entertainment company.
• Each stockholder will receive a distribution of one Class A or Class B share of the new live entertainment company for every share of the company’s Class A or Class B common stock, respectively, held as of the record date, representing ~67% of the outstanding shares of the new live entertainment company.
• Distribution will take place on Apr.20, 2023 to shareholders of record as of Apr.14, 2023.
• Also, the company board authorized a $250M share repurchase program for the new live entertainment company's Class A common stock post spin-off completion.
• From Apr.17, 2023, the company will trade in two markets on the NYSE - one is the regular market under current name and symbol and other is in the "ex-distribution" market under the new name, Sphere Entertainment, and under the symbol "SPHR WI".

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