[ad_1]
The MSG Sphere, the long-awaited spherical venue under construction in Las Vegas, promises to revolutionize the concert experience. Before it opened, however, MSG Sphere was changing its creator’s corporate structure.
On Monday, MSG Entertainment announced plans for an upcoming spinoff that will separate MSG Sphere, a next-generation music venue being built in Las Vegas, from the rest of its live music business.
The latest version of the proposed deal results in a pure music company called MSG Entertainment, which includes venues such as Madison Square Garden, the Hulu Theater at Madison Square Garden, Radio City Music Hall, the Beacon Theater and the Chicago Theater. MSG Entertainment also Will include Entertainment and Sports Reservations, Radio City Rockettes and Christmas Spectacular production, and long-term arena licensing agreements with the New York Knicks and New York Rangers, who play their home games at Madison Square Garden.
This first iteration The spin-off pairs the live music business with MSG Networks, a regional sports network that broadcasts games from the Knicks, Rangers, New York Giants, New Jersey Devils, New York Islanders and Buffalo Sabers. That would bring the company’s two most established divisions under one roof, separate from MSG Sphere and restaurant and nightlife operator Tao Group Hospitality. However, MSG Entertainment will combine the financially risky Sphere project with the more stable revenue of MSG Networks, which generated $608.2 million in revenue and $131 million in operating profit for the year ending June 30, 2022.The new plan “is to maximize shareholder value while providing both companies with enhanced strategic and financial flexibility to drive long-term growth,” the company said in a statement statement.
The new spin-off plan will combine MSG Networks with MSG Sphere and Tao Group Hospitality. The spin-off company will be named MSG Sphere Corp, and the executive chairman and CEO “will enhance the flexibility to execute its business strategy and pursue global growth opportunities” james dolan said in a statement.
The proposed transaction will be structured as a tax-free spin-off for all MSGE shareholders. Owners of MSGE Class A and Class B shares will be distributed pro rata, expected to represent approximately two-thirds of the economic interest in live entertainment company MSG Entertainment. Parent company MSG Sphere will retain an approximately one-third interest in MSG Entertainment.
The Venetian’s $1.8 billion MSG Sphere will open in Opening 2023 with U2 residency. The spherical venue will provide a multi-sensory audio-visual experience for 20,000 standing spectators or 17,500 seated guests. It includes 160,000 square feet of video viewing space and an exterior exoplane with programmable LED technology.
[ad_2]
Source link