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Feb 18
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$341.76
$341.76
+0.0%
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LONG
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Randall Williams
Sports Business Reporter, Bloomberg
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"MSD [MSG] as a company is valued at $7 billion... the Knicks and the Rangers combined are much larger than that... anywhere between 13 to $14 billion." The stock is trading at a ~50% discount to the sum-of-the-parts (SOTP) value of its assets. A spinoff or restructuring serves as the catalyst to unlock this value, allowing public shareholders to capture the private market premium. LONG. Pure arbitrage play on the disconnect between public market cap and private asset valuation. The Dolan family (controlling owners) may decide against the spinoff or structure it in a way that doesn't benefit minority shareholders; holding company discounts can persist for years. |
Bloomberg Markets
MSG Sports Considering Spinning Off New York ...
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Feb 18
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$341.76
$341.76
+0.0%
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N/A
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Finnhub News
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Finnhub - MSGS
The market is filled with gapping stocks in W...
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Feb 18
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$341.76
$341.76
+0.0%
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LONG
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business
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Madison Square Garden's plan to explore spinning off |
@business
Madison Square Garden’s board of directors ap...
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Feb 18
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$341.76
$341.76
+0.0%
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WATCH
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Benzinga
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Madison Square Garden Sports' board has approved a plan to explore separating the New York Knicks and New York Rangers into two separate, publicly traded companies. Corporate spin-offs are a classic financial engineering tool to unlock shareholder value by eliminating a "conglomerate discount." The market believes the individual sports franchises, as pure-play assets, are more valuable apart than together, which is confirmed by the stock's immediate positive reaction. The announcement of a potential spin-off is a major bullish catalyst. While the initial 10.2% price surge reflects the market's optimism, further upside could be realized as the company provides more concrete details on the transaction's structure and timing. The stock should be watched for favorable entry points on any pullbacks or for further momentum as the plan progresses from "exploration" to execution. The primary risk is that the company ultimately decides not to proceed with the spin-off, which would likely cause the stock to surrender its recent gains. Execution risk, unfavorable terms of the separation, or a lengthy, delayed process could also dampen investor enthusiasm. |
Finnhub - MSGS
Madison Square Garden Sports shares are tradi...
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Feb 18
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$341.76
$341.76
+0.0%
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N/A
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Finnhub News
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Finnhub - MSGS
MSG Sports Board Unanimously Approves Plan Fo...
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