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Madison Square Garden to examine splitting business into two

Madison Square Garden Co. MSG, -2.00% stated late Wednesday that the board licensed plans to inspect spinning-off its sports companies that come with the New York Knicks and New York Rangers right into a separate publicly traded company. Madison Square Garden stock is up 1.eight% in the extended session after ultimate down 2% to $266.23 right through common trading. "We are exploring the opportunity to further create value by separating our businesses into two distinct companies," Chief Executive James Dolan and is predicted to be government chairman and CEO of both organizations, the corporate stated in a statement. "We believe this proposed transaction would provide each company with enhanced strategic flexibility, its own defined business focus and clear investment characteristics." The company stated the transaction could be tax-free for shareholders, who would obtain proportional distribution anticipated to be identical to two-thirds of the sports spin-off. The live leisure company is predicted to incorporate venues similar to New York's Madison Square Garden, its sports bookings unit, a one-third pastime in the sports spin-off and about $1 billion in cash readily available. Madison Square Garden stocks are up 26% this yr, as the S&P 500 index SPX, -Zero.86% has won 1%.