Madison Square Garden Entertainment Corp. will spin off its traditional live entertainment business and rebrand the parent company as Sphere Entertainment Co. consisting of The Sphere, MSG Networks and Tao Group Hospitality businesses.
The newly formed live entertainment company will take the Madison Square Garden Entertainment Corp. name and include performance venues, the entertainment and sports booking business and “Christmas Spectacular Starring the Radio City Rockettes” production.
MSGE’s board of directors approved the spinoff, which is expected to be completed April 20.
“With today’s announcement, we are one step closer toward our goal of creating two distinct companies, each well positioned to generate long-term value for our shareholders,” MSGE Executive Chairman and CEO James Dolan said in a statement.
Shareholders of record as of April 14 will receive a distribution of one Class A or Class B share of the new company for every share of common stock held, representing 67% of the new company’s outstanding shares. Sphere Entertainment will own the remainder.
The Company’s Board of Directors also authorized a $250 million share repurchase program for the new live entertainment company’s Class A common stock following completion of the spin-off.
The company expects the common stock to trade in two markets on the New York Stock Exchange: in the “regular way” market under the company’s current name, Madison Square Garden Entertainment Corp., and under the current ticker symbol, MSGE, and in the “ex-distribution” market under the new name, Sphere Entertainment Co., and under the symbol SPHR WI.