MSG Sports is splitting the Knicks and Rangers into two stocks, and history says spin-offs tend to beat IPOs

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MSG Sports is splitting its two New York teams into independently traded companies. The Knicks, who won their first NBA championship in 53 years in June, will be housed in MSG Knicks Corp. (ticker MSGK), while the NHL Rangers will be isolated in MSG Rangers Corp. (ticker MSGR). MSG Sports has a market cap of approximately $9.8 billion, but Sportico values the Knicks at $12.8 billion and the Rangers at $4.15 billion. Shareholders of record on October 20 will receive one MSG Rangers share for every two MSG Sports shares owned, with the distribution scheduled for October 26 and regular-way trading to begin on October 27. According to Professor Jay Ritter’s research from 1980 to 2024, spin-off stocks outperformed IPOs by an average of 10.6 percentage points over their first three years of trading.

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Telemac
Telemachttp://cryptoinfo.ch
Passionné de nouvelles technologies, j’explore l’univers de la blockchain et des cryptomonnaies pour partager l’actualité et les innovations du secteur.

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