MSG Entertainment to sell 66.9% stake in Tao Group Hospitality for $550M valuation

Sphere Entertainment Co.

Sale to Mohari Hospitality; net proceeds expected ~$300M; closing targeted May 2023.
Tao Group Hospitality valued at $550M; MSGE owns 66.9% via subsidiaries.
Fiscal 2022 revenue of $485M, operating income $37M, adjusted operating income $67M.
Proceeds to be used for general corporate purposes and Sphere initiatives.
Multi-year consulting, marketing, and support services agreements with Tao after close.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

Sphere Entertainment Co. entered into Transaction Agreement with Disco Ball Intermediate, LLC valued at $550,000,000 enterprise value (effective 2023-04-17).

Action: entry
Agreement: asset purchase
Counterparty: Disco Ball Intermediate, LLC
Value: $550,000,000 enterprise value
Effective: 2023-04-17

Exact text from the filing

The sale is being made pursuant to the Transaction Agreement (the “ Transaction Agreement ”) dated as of April 17, 2023, by and among TAO Group Hospitality, the Buyer, the Sellers and MSG Entertainment Group, LLC, solely for the purposes set forth therein, and such other parties named in the Transaction Agreement, pursuant to which, among other things, the Sellers are selling all of the issued and outstanding limited liability company interests of Tao Group Hospitality (other than rollovers by certain members of management of a portion of their interests) to the Buyer in a transaction valuing TAO Group Hospitality at $550.0 million, subject to certain customary purchase price adjustments.

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Sphere Entertainment Co. filing history →

Source: SEC EDGAR

accession 0001193125-23-103834

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