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Madison Square Garden Entertainment, the venue owner of the Dolan family’s sports empire, is in talks to sell a portion of the MSG property in Manhattan to a developer for about $1 billion, according to US media reports Crane’s New York Business Wednesday night.
The theater at Madison Square Garden, which sits below the main arena where the Knicks and Rangers play, along with an alleyway, is up for sale to Italian developer ASTM Group, according to reports. ASTM wants to renovate Penn Station below MSG and will demolish the 5,500-seat theater to expand the long-criticized railroad hub.
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“Regarding theaters, we always consider options that make strategic and financial sense for our company, but we don’t have much more to share today,” Chief Financial Officer David Burns said on an earnings call with analysts Thursday morning. said at the meeting. In a statement provided by MSG, the company added: “As we have said, we are always open to discussion. As investing members of our community, we are deeply committed to improving Penn Station and the surrounding area, and we will continue to Working closely with a broad range of stakeholders to advance this shared goal.”
The potential sale helped push MSGE shares up 26% in trading on the New York Stock Exchange on Thursday. Changing hands at $38.70, that would be a 13-month high for MSG Entertainment stock, although MSGE’s trading history is officially tied to Sphere Entertainment, which was spun off from MSGE last month. Thursday’s price took the stock to the highest level in the five-week trading history of the restructured entertainment business, above the $35 value the business set on April 17.
MSG Entertainment also reported its third-quarter results on Thursday, beating consensus estimates compiled by S&P Global Intelligence for revenue of $201.2 million and earnings of 42 cents a share. The results for the period ended March 31 were helped by greater concessions and suite revenue sharing with the Knicks and Rangers owned by sister company Madison Square Garden Sports. The two teams will compete in the arena until at least 2055, the company noted.
For the full year, Entertainment expects revenue of up to $845 million. The company owns the Manhattan Arena, Radio City Music Hall and the Beacon Theater in New York, and the Chicago Theater in Illinois. Last month, it spun off the MSG regional sports network, a restaurant group and a Las Vegas venue, changing its name to Sphere Entertainment.
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