Madison Square Garden Co., which said in October that it would
explore separating its entertainment businesses from its media and
sports operations, added Thursday that it would consider breaking
up further.
Possibilities include a separation of its media operations from
its sports and entertainment businesses, MSG said Thursday.
The company's sports and media activities include the New York
Knicks and Rangers and the MSG regional sports TV networks. The
entertainment business presents and hosts concerts and other live
events. In 2010, MSG itself was spun out of Cablevision Systems
Corp.
Madison Square Garden said in October that it would nominate to
its board Nelson Peltz, an activist investor who runs Trian Fund
Management LP, as well as Scott Sperling, co-president of
private-equity firm Thomas H. Lee Partners.
Mr. Peltz and Trian are known for pushing to split up companies,
a trend that has been gaining momentum in the past year as
investors have increasingly called for companies to focus on a few
core businesses and shed other operations. Firms ranging from
PepsiCo Inc. to eBay Inc. have faced such pressure from activists.
EBay has announced breakup plans, while PepsiCo hasn't.
JAT Capital Management, a hedge fund, disclosed an activist
position in MSG in late August. In October it said it was "very
pleased" with MSG's spinoff plans.
During the third quarter, MSG's revenue climbed to $241.7
million from $215.6 million, benefiting from strength at its
entertainment and sports segments.
Write to Josh Beckerman at josh.beckerman@wsj.com
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