Madison Square Garden Entertainment Corp. advances with the spin-off of its live entertainment business, a previously proposed transaction which is expected to be completed by the end of March 2023.
The entertainment giant comprises of a diverse collection of venues in New York and Chicago, including Madison Square Garden, Hulu Theater at Madison Square Garden, Radio City Music Hall and Beacon Theatre; and The Chicago Theatre. With the spin-off, the new company will take on the name Madison Square Garden Entertainment Corp, and incorporate venues such as Radio City Music Hall, the Beacon Theatre and the Chicago Theatre whereas the rest of the stake is planned to be held by the current parent company, to be renamed MSG Sphere Corp.
According to the statement made by the company, the tax-free spin-off will give shareholders of MSG Entertainment a 67% economic interest in the new company. The remaining approximately 33% economic interest in the live entertainment company would be retained by the current parent company, which would be renamed MSG Sphere Corp.
In 2022 summer the company said that it would likely to separate the live entertainment business and the MSG Networks unit from its MSG Sphere and Tao Group Hospitality businesses. But a couple of months later it announced that it would retain MSG Networks, which owns two regional sports and entertainment networks.
MSG Entertainment is also building a new state-of-the-art venue in Las Vegas, MSG Sphere at The Venetian.