(Reuters) – Madison Square Garden Entertainment (MSGE.N) said on Friday it would go ahead with a previously proposed spin-off of its live entertainment business.
The tax-free spin-off, which is expected to be completed by the end of March, will give MSG Entertainment shareholders a 67% economic return on the new company.
The new company, which includes other venues such as Radio City Music Hall, Beacon Theater and Chicago Theater, will be named Madison Square Garden Entertainment Corporation, and the existing company will be renamed MSG Sphere Corporation.
MSG Entertainment said in August that it was considering a spin-off that would separate its traditional live entertainment business and MSG Networks division from its MSG Sphere and Tao Group hospitality businesses.
However, the company said in December that it would retain MSG Networks, which owns two regional sports and entertainment networks.
Reported by Yuvraj Malik, Bangalore.Edited by Maju Samuel
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