5 Spin-off Companies in 2023

3. Madison Square Garden Entertainment Corp. (NYSE:MSGE)

Number of Hedge Fund Holders: 36

Live entertainment company Sphere Entertainment Co. spun off Madison Square Garden Entertainment Corp. (NYSE:MSGE) earlier this year. In August, BofA started covering Madison Square Garden with a Buy rating. The firm called the stock a “growth-oriented, pure play on live entertainment.”

BofA analyst Peter Henderson said that spun off company is an “attractive opportunity” for investors who want to own a live entertainment company, thanks to its solid market position.

As of the end of the second quarter of 2023, 43 hedge funds tracked by Insider Monkey had stakes in Madison Square Garden Entertainment Corp. (NYSE:MSGE).

Ariel Small Cap Value Strategy made the following comment about Madison Square Garden Entertainment Corp. (NYSE:MSGE) in its Q2 2023 investor letter:

“Additionally, live entertainment business, Madison Square Garden Entertainment Corp. (NYSE:MSGE) completed its spin-off from Sphere Entertainment Co. (SPHR) in the quarter. The company’s portfolio includes a collection of venues, such as New York’s Madison Square Garden, Radio City Music Hall, Beacon Theatre and The Chicago Theater. MSGE also features the original production of the Christmas Spectacular starring the Radio City Rockettes. In our view, MSGE’s assets are stable cash flow generators and should enable deleveraging. At current valuation levels, the company is trading at an attractive 40% discount to our estimate of private market value.”