US telco Cablevision has profited from spinning off its Madison Square Garden assets, which include the iconic New York sports and entertainment venue and the New York Knicks baseball team.
Bloomberg reports that Cablevision Systems Corp’s stock rose the most it has in four months following the move. The assets were unprofitable and have now been placed in a separate business to be run by Hank Ratner, a vice-chairman at Cablevision. The telco will focus on the profitable New York-area cable television business.
The new Madison Square Garden business will be divided into three divisions – MSG Media, containing the companies cable channels, MSG Entertainment, handling concerts and events promotion, and MSG sports which will concentrate on the team franchises.
