The Madison Square Garden Co. MSG, -0.94% on Wednesday said it has taken a 62.5% stake in newly formed TAO Group in hopes of strengthening its portfolio of live entertainment. The majority stake cost MSG $181 million, plus a potential performance earn-out of up to $25.5 million, according to a news release. TAO Group’s management team retains the remaining 37.5% and will run the day-to-day operations of the dining, entertainment and nightlife business. TAO Group owns and operates 19 venues in New York City, Las Vegas and Sydney, Australia. “TAO Group is a unique and attractive business that furthers our focus on the ‘live experience’ while also exposing us to new areas of growth,” said MSG Executive Chairman James Dolan in a statement. MSG over the summer moved into the music festival business, buying controlling interest in entertainment production company Boston Calling Events and MSG already holds 50% ownership in the Tribeca Film Festival. Shares of MSG have gained more than 14% in the trailing 12-month period, while the S&P 500 Index SPX, +0.24% is up 17% in the same time.

Stay Informed!

Join our mailing list to receive the latest news and updates from Marc Bell Capital Partners.

Thank you! Please check your email to confirm your subscription.