Madison Square Garden Co. has taken a stake in Townsquare Media Inc. as part of an effort to cooperate on new live-event opportunities.

MSG bought about 3.2 million shares of Townsquare, or a 12% stake, from GE Capital, according to people familiar with the matter. Given Townsquare's market value of about $230 million, the stake is worth nearly $30 million. The companies are expected to announce the transaction Wednesday.

MSG was separated from MSG Networks , which owns regional sports and entertainment networks, last year. MSG owns teams including New York's Knicks and Rangers and venues including Madison Square Garden and Radio City Music Hall in New York.

Townsquare owns 310 radio stations and more than 325 websites in 66 U.S. markets, among other media assets focused on small and midsize communities. It also puts on some 550 live events a year in the U.S. and Canada, including music festivals like the Mountain Jam and the America on Tap craft-beer series.

Townsquare was founded in 2009 by Chief Executive Steven Price, a former head of telecommunications, technology and media investing at private-equity firm Centerbridge Partners. Before that, he was deputy assistant secretary of defense for spectrum, space and communications from 2001 to 2003.

MSG and Townsquare are complementary in their focus respectively on events in large and smaller markets. The companies plan to jointly explore marketing, sponsorship and booking opportunities.

MSG's investment is also aimed at giving the company more expertise in the festival business, which it has been eyeing.

Corrections & Amplifications: Townsquare Media has a market value of about $230 million, meaning the 12% stake MSG is taking is worth nearly $30 million. An earlier version incorrectly stated that Townsquare's market value was about $160 million. (Aug. 16, 2016)

Write to Dana Cimilluca at dana.cimilluca@wsj.com

(END) Dow Jones Newswires

August 16, 2016 21:25 ET (01:25 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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