Cablevision to spin-off Madison Square Garden into separate company

.

Cablevision

In what can be called a widely-anticipated move, Cablevision Systems Corp. announced on Thursday that its board has approved a tax-free spin-off of its Madison Square Garden (MSG) business - the owner of the New York Knicks and the Rangers - into a stand-alone enterprise. As per the proposed plan, the Garden unit will be spun off to the current shareholders by this year's end.

However, the Bethpage, New York-based Cablevision - which boasts of a fairly diverse portfolio including cable systems and channels; the Newsday newspaper; and various sports and entertainment properties - clarified in the announcement that "at this time" it was not considering selling the Garden or any of its assets.

The control of the new, separate Garden entity will be retained by the Dolan family that controls Cablevision by way of a special class of shares. Moreover, the separate company will continue to be managed by James L. Dolan and Hank Ratner - the Cablevision executives who presently oversee the Garden business.

It is being assumed that the Cablevision decision to spin-off MSG apparently results from its objective to showcase its robust cable system, telecommunications and programming assets disjointedly from the Garden's less-valuable businesses.

Commenting on the move, Craig Moffett, an analyst at Sanford C. Bernstein, said that "the separation of MSG removes a harder-to-value collection of assets from an overly complex balance sheet."


Latest News

Yelp Trims Third Quarter Earnings Forecast Also Announces Departure of Its Chair
Solvay, the Belgian Chemical Group to Acquire U.S. Cytec for $5.5 billion
Reports Say Amazon Suggests Dividing Airspace into Zones for Delivery Drones
Federal Reserve Expected to Stay Focused on Rate Hike Plan in September
Oil Prices Drop Near Four-Month Low as Supply Glut and Chinese Economy Increases
Reportedly A.G. Lafley to Pass Reigns of P&G CEO to David Taylor
Baidu Profits in Second Quarter Offset by Higher Expenses
Economists Predict Solid Revenue Growth for Vermont
Swiss bank Vontobel Announces 24 Percent Increase in Profit in the First Half of
President Obama Visits Kenya, His Father’s Birth Place
National Highway Traffic Safety Administration Slaps $105M Fine on Fiat Chrysler
Wealthy, Well Educated People in Early 60’s More at Risk of Harmful Drinking