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

Apple releases new app for Apple TV --- ‘iBooks StoryTime’
Al Gore wants to work with Trump to tackle climate change
Martian show home opened at London’s Royal Observatory
Apple officially starts selling refurbished versions of previous iPhones
Google Capital re-branded as ‘CapitalG;’ Snapchat added to its list of investmen
Facebook
White House’s plans for "digital transition" between Obama administration and ne
Microsoft's first desktop computer --- ‘Surface Studio’
Professor writes ‘prank’ physics paper using iOS autocomplete
Twitter plans to shrink its workforce by about 8%
Elon Musk talks about SpaceX’s plans to test ITS’ huge fuel tank at sea
Hackers cut access to some of the world's best known websites on Friday