Madison Square Garden to Split Into 2 Companies

Andrew Harrer/Bloomberg via Getty Images
Madison Square Garden arena in New York, U.S., on Friday, May 8, 2009.

The Madison Square Garden Company said Friday that it has filed an initial Form 10 registration statement with the U.S. Securities and Exchange Commission to go ahead with a split it has been considering.

It was exploring a possible separation of its businesses into two publicly traded companies. The planned separation would be structured as a tax-free spin-off of the sports and entertainment business to MSG shareholders on a pro-rata basis to separate that from the media businesses.

The transaction is currently expected to be completed during 2015, subject to certain conditions, the firm said.

"After review, MSG's Board of Directors believes that, while MSG has created significant shareholder value since it was established as a public company five years ago, separating MSG's live sports and entertainment businesses from its media business now would further enhance the long-term value-creation potential of both businesses," the company said.

"While the companies would continue to benefit from commercial arrangements between them, the separation would provide each company with increased strategic flexibility to pursue its own distinctive business plan and allow each to have a capital structure and capital return policy that is appropriate for its business," it added. "Upon completion of the spin-off, MSG shareholders would own shares in both companies and have the ability to evaluate each company's current business and future prospects in making investment decisions."

This article originally appeared in The Hollywood Reporter.