The newly spun-off MSG Entertainment began trading as a public company on Monday as the live business continues to wait in the wings due to pandemic-related shutdowns of events.
Shares of MSGE opened at $68 on Wall Street. Each MSG common stockholder received one share of MSGE Class A or B common stock for every common stock of MSG they held before the spinoff.
The company also announced the appointment of Mark FitzPatrick as its executive vp and chief financial officer, reporting to CEO James Dolan. FitzPatrick arrives after a four-year tenure as deputy CFO at WeWork, preceded by 10 years at Time Warner Cable.
“While the current environment presents significant challenges to our industry, we are confident in the future, and look forward to MSG Entertainment building on its reputation as a leader in live experiences,” said Dolan, who tested positive for the coronavirus in March though continued to oversee the business.
He added, “We are also very pleased to welcome Mark, a talented corporate finance executive who brings extensive experience working with well-known companies. We believe he is the ideal executive to help guide MSG Entertainment as we continue to pursue excellence across our operations.”
In its most recent financial disclosure, covering the three months ended Dec. 31, MSG reported $628.8 million total revenue — with nearly half ($312.7 million) courtesy of MSG Entertainment.
MSGE’s portfolio includes the crown jewel Madison Square Garden and the attached Hulu Theater at MSG in New York City. MSG Entertainment also leases Radio City Music Hall and Beacon Theatre, also in NYC, and it owns outright the Chicago Theatre. MSGE is also building the massive MSG Sphere at The Venetian in Las Vegas, and has announced plans to build a second MSG Sphere in London, pending approvals.
While still part of the family, the company recently reached an agreement to sell The Forum in Inglewood, Calif. to L.A. Clippers owner Steve Ballmer for $400 million in cash.
As part of the split with the sports division, MSGE retains majority interests in hospitality company TAO Group and festival producer Boston Calling Events.