Madison Square Garden Takes 12% Stake in Townsquare Media
August 16 2016 - 9:40PM
Dow Jones News
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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