MSG Entertainment board approves spin-off of traditional live entertainment unit

Madison Square Garden Entertainment announced that its board of directors has approved the spin-off of its traditional live entertainment business, which is expected to be completed on April 20th. Upon completion of the spin-off transaction, the current parent company will be renamed Sphere Entertainment Co. and will be comprised of the Sphere, MSG Networks and Tao Group Hospitality businesses. The newly formed live entertainment company will take on the name Madison Square Garden Entertainment Corp. and will include a diverse collection of performance venues, the entertainment and sports bookings business, and the Christmas Spectacular Starring the Radio City Rockettes production. Executive Chairman and CEO James L. Dolan said: "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." The distribution will take place on April 20, 2023 to the Company’s stockholders of record as of the close of business on April 14, 2023. Each of the Company’s common stockholders will receive a distribution of one Class A or Class B share of the new live entertainment company for every share of the Company’s Class A or Class B common stock, respectively, held as of the record date, representing approximately 67% of the outstanding shares of the new live entertainment company. Immediately after the spin-off becomes effective, Sphere Entertainment Co. will own approximately 33% of the outstanding shares of the new live entertainment company. The Company’s Board of Directors also authorized a $250M share repurchase program for the new live entertainment company’s Class A common stock following completion of the spin-off.