Madison Square Garden sold its entire stake in Ticketmaster-owner Live Nation Entertainment Tuesday, generating net proceeds of $44 million for the 3.9 million shares sold.
MSG said in a terse statement that it "had no further comment on the transaction," but the move appears to have been motivated in part by the fact that MSG had only a small stake in the company -- just 3.2% of shares outstanding, making it only the 10th largest shareholder in Live Nation. Also, MSG Chairman James Dolan resigned from Live Nation's Board of Directors last month, further eroding ties between the companies.
Without an interest in Live Nation, MSG remains a highly diversified company, owning both the New York Knicks basketball team and the New York Rangers hockey team, as well as the Madison Square Garden arena and Radio City Music Hall. MSG also owns the Fuse music television network, MSG Networks, and various interactive websites, social-networking sites, and mobile applications.
MSG shares closed 1% lower in Tuesday trading at $55.42. Live Nation shares gained 0.2% to close at $11.65.
The article Madison Square Garden Cashes Out of Live Nation originally appeared on Fool.com.Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Madison Square Garden. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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