Madison Square Garden Entertainment Corp. has agreed to sell its 66.9% majority interest in Tao Group Hospitality, the nightlife and dining company behind the brands Lavo, Hakassan, and Marquee, to Mohari Hospitality, PokerStars co-founder Mark Scheinberg’s investment company. Upon completion of the sale, MSG Entertainment expects to receive net cash proceeds of approximately $300 million.
MSG Entertainment Sells Majority Stake in Tao Group Hospitality
Madison Square Garden Entertainment Corp. has agreed to sell its 66.9% majority interest in Tao Group Hospitality, the nightlife and dining company behind the brands Lavo, Hakassan, and Marquee, to Mohari Hospitality, PokerStars co-founder Mark Scheinberg’s investment company. Upon completion of the sale, MSG Entertainment expects to receive net cash proceeds of approximately $300 million.
Luxury Hospitality Giants Mohari and Tao Group Hospitality Join Forces
Established by PokerStars co-founder Mark Scheinberg after selling PokerStars to Amaya Gaming Group Inc. for $4.9 billion in 2014, Mohari Hospitality is a global investment company that focuses on luxury lifestyle and hospitality sectors and manages a portfolio of Four Seasons and Waldorf hotels and residences such as 1 Hotel in Toronto, Centro Canalejas in Madrid, and the Ritz Carlton Yacht Collection.
On the other hand, since MSG Entertainment acquired a majority interest in Tao Group Hospitality in 2017, the latter has transformed into a global powerhouse in entertainment dining and hospitality, with a portfolio of over 80 branded locations in over 20 markets across four continents.
In fiscal 2022, Tao Group Hospitality generated approximately $485 million in revenue, $37 million in operating income, and $67 million in adjusted operating income.
The sale of MSG Entertainment’s stake is subject to customary closing conditions and is not conditioned on the receipt of financing. Effective as of the closing of the sale, MSG Entertainment will enter into multi-year agreements with Tao Group Hospitality for ongoing consulting, marketing, and support services at Madison Square Garden and Sphere in Las Vegas.
Madison Square Garden Entertainment to Spin-Off Live Entertainment Business
On March 30, Madison Square Garden Entertainment Corp. announced that its board of directors has approved the spin-off of its traditional live entertainment business. The spin-off transaction is set to be completed on April 20, and upon completion, the current parent company will be renamed Sphere Entertainment Co. and will consist of the Sphere and MSG Networks businesses.
The newly formed live entertainment company will take on the name Madison Square Garden Entertainment Corp. and will include various performance venues, entertainment and sports booking businesses, and the Christmas Spectacular Starring the Radio City Rockettes production.
Executive Chairman and CEO James L. Dolan stated that the announcement brings the company one step closer to its goal of creating two distinct companies, each of which is well-positioned to generate long-term value for shareholders.
Madison Square Garden Entertainment Corp. is a leader in live entertainment. The Company presents or hosts a broad array of events in its diverse collection of venues, including New York’s Madison Square Garden, The Theater at Madison Square Garden, Radio City Music Hall, Beacon Theatre, and The Chicago Theatre. MSG Entertainment is also building a new state-of-the-art venue in Las Vegas, Sphere at The Venetian.
