NEW YORK (CelebrityAccess) — Madison Square Garden Entertainment announced it has struck a deal to acquire the regional cable and satellite television network, and radio service MSG Networks Inc. in an all-stock deal.
MSG produces content such as the television broadcasts of the NBA’s New York Knicks, the NHL’s New York Rangers and (until 2018) the WNBA’s New York Liberty, as well as the Westchester Knicks, the New York Knicks’ farm club in the NBA G League and other teams around the region. The network also airs original sports-related content such as The MSG 150, and Inside the Knicks.
MSG Networks also includes a radio division known as the Madison Square Garden (MSG) Radio Network. The radio network produces Knicks, Rangers and Red Bulls broadcasts for New York City ESPN Radio station WEPN-FM (98.7) and other radio stations across the region.
According to MSGE, the transaction will create an entertainment and media company with a diversified revenue base that will support the company’s live entertainment operations as business resumes in the wake of th epandemic.
The consolidated company would also support its planned state-of-the-art venue in Las Vegas, MSG Sphere at The Venetian, as well as future opportunities across both entertainment and media, the companies said.
“MSG Entertainment is actively executing a plan designed to grow the Company beyond its established collection of assets into one that is pioneering the next generation of entertainment. We have always believed in the value of live sports and look forward to welcoming MSG Networks back into the fold as part of a transaction that we are confident would enhance our financial flexibility and set the stage for continued growth and value creation.”
The all-stock transaction is subject to approval by a majority of the combined voting power of the outstanding shares of MSG Networks Class A common stock and Class B common stock.
Moelis & Company LLC and The Raine Group are serving as independent financial advisors and Wachtell, Lipton, Rosen & Katz is serving as independent legal counsel to the Special Committee of the Board of Directors of MSG Entertainment. LionTree Advisors LLC and Morgan Stanley & Co. LLC are serving as independent financial advisors and Davis Polk & Wardwell LLP is serving as independent legal counsel to the Special Committee of the Board of Directors of MSG Networks. Debevoise & Plimpton LLP is serving as legal counsel to the Dolan family.