Wolf Popper LLP Investigates the Proposed Acquisition of MSG Networks Inc. by its Controlling Shareholder Madison Square Garden Entertainment Corp.
31 Mar, 2021, 07:00 ET
NEW YORK, March 31, 2021 /PRNewswire/ -- Wolf Popper LLP is investigating claims on behalf of investors in MSG Networks Inc. (NYSE: MSGN) concerning the proposed transaction undertaken by MSG Networks' controlling shareholder, Madison Square Garden Entertainment Corp. (NYSE: MSGE). Under the terms of the proposed transaction, MSG Networks shareholders would receive 0.172 shares of MSG Entertainment common stock for each share of Class A and Class B MSG Networks common stock they hold. As of March 30, 2021, the implied deal price to MSG Networks shareholders is $14.13 per share, which is below MSG Networks' 52-week high stock price of $20.61 and below Macquarie Capital's $20.00 per share price target.
The Dolan family—which is led by James L. Dolan, the executive chairman and CEO of MSG Entertainment and also the executive chairman of MSG Networks—controls both companies through its ownership of each company's Class B shares. However, despite its controlling ownership position, the Dolan family is not requiring that the deal be approved by a majority of unaffiliated MSG Networks shareholders.
According to Wolf Popper partner Carl Stine, "There doesn't appear to be any rationale for the deal except to line the pockets of the Dolan family at the expense of MSG Networks' public shareholders."
Wolf Popper is investigating potential claims on behalf of investors in MSG Networks concerning the transaction. MSG Networks shareholders seeking more information about the transaction or Wolf Popper's investigation can contact Mr. Stine at (212) 451-9631 or [email protected].
Wolf Popper has extensive experience representing investors in mergers and acquisition investigations and lawsuits. Eight Wolf Popper attorneys were named Super Lawyers or Rising Stars in the 2020 Super Lawyers New York City Metro Edition, including Wolf Popper partner Carl Stine, who was included in the Super Lawyers Top 100 List for the New York City Metro area. View Wolf Popper attorney biographies at www.wolfpopper.com.
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SOURCE Wolf Popper LLP
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