MSGE - MSG Entertainment buys MSG Networks in an all-stock fixed exchange ratio transaction

Madison Square Garden Entertainment (MSGE) acquires MSG Networks (MSGN) -2.13% premarket, in an all-stock, fixed exchange ratio of ~4% above the ratio of the unaffected closing stock prices of the two companies on March 10, 2021. The merger is expected to be tax-free for both the companies and their stockholders.MSG Networks stockholders would receive 0.172 shares of MSG Entertainment Class A or Class B common stock in exchange of each MSG Networks Class A or Class B common stock. The combined company would have a stronger liquidity position to support its live entertainment business and is expected to generate significant incremental revenue in the years ahead. With the acquisition of MSG Networks, MSG Entertainment anticipates it would capture more of the emerging revenue opportunity related to the potential expansion of legalized sports gaming in its market. MSG Entertainment President Andrew Lustgarten said: “MSG Entertainment is actively executing a plan designed to grow

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MSG Entertainment buys MSG Networks in an all-stock, fixed exchange ratio transaction