MSG Co. acquires 12% stake in Townsquare

The Madison Square Garden Co., which owns the New York Knicks and the NBA team’s home arena, said Wednesday that it had taken a 12% stake in Townsquare Media.

MSG purchased about 3.2 million shares of the Greenwich, Conn.- based Townsquare, valued at about $30.3 million. Townsquare owns 310 radio stations and more than 325 websites across the U.S. and operates about 550 live events including the Taste of Country Music Festival in Hunter, N.Y.

The two companies will work together to expand live events, a strategy that MSG has been focusing on recently, the companies said. 

“Using its diversified portfolio of radio stations, digital assets and live events, Townsquare creates compelling content that brings people together and builds communities," MSG Co. CEO and President David O'Connor said in a statement. "We understand and share their belief in the value of exceptional, live experiences, and look forward to working together ... to drive additional value and growth for both businesses.”

Madison Square Garden Co. (MSG) shares are up nearly 21% so far this year, to $186.30, while Townsquare (TSG) shares have fallen 27% to $8.42 so far this year.

Last year, the MSG Co. spun off its media business MSG Networks, which distributes its regional sports TV networks.

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