MSGE - MSG Entertainment Sphere Entertainment complete spin-off

2023-04-21 12:10:16 ET

Madison Square Garden Entertainment ( NYSE: MSGE ) has wrapped up its spin-off from Sphere Entertainment (SPHR), and the two are trading as separate companies .

MSG Entertainment had planned a distribution that would separate a company overseeing the MSG Sphere venue, MSG Networks and Tao Group Hospitality.

Now that spin-off is complete, and the MSGE Spinco is trading under the MSGE symbol, while the old MSG Entertainment entity lives on under the SPHR symbol.

At 11:59 p.m. Thursday night, each of Sphere Entertainment's stockholders received one share of the new MSG Entertainment for each share of Sphere held, making up about 67% of the outstanding shares of new MSGE (with Sphere holding the remaining 33%).

The distribution was structured to quality as tax-free for federal income tax purposes.

MSG Entertainment stock ( MSGE ) was down 6.4% to $30.50 at midday Friday following the distribution.

MSG Entertainment this week also reached a deal to sell a majority interest in Tao Group Hospitality for $550M .

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