MSG Spinoff Speculation

Cablevision Systems’ decision to spin off Madison Square Garden and its affiliated companies could make the company a takeover target by unlocking the cable provider’s value and getting the company out of paying for an expensive MSG renovation.

The spinoff would take Cablevision off the hook for the estimated $500 million makeover – an estimate Barron’s reports could be half of what it could actually cost. The spinoff would also make the company easier to analyze, Miller Tabak analyst David Joyce told Barron’s.

According to the business paper, Cablevision would become a more attractive target for takeover by cable providers like Comcast and Time Warner Cable.

“It will make the company much more analyzable,” Joyce told Barron’s. “Profits and revenues will be less volatile, and Wall Street and investors will find it easier to appreciate and value Cablevision. And that has got to be very good for the future of the stock.”

The controlling Dolan family so far denies any plan to either sell or take Cablevision private.