Madison Square Garden pays $181 million for majority stake in TAO
Home of the New York Rangers and Radio City Rockettes, Madison Square Garden has acquired a reported $181 million stake (62.5%) in hospitality and nightlife group TAO, leaving TAO co-founders Marc Packer, Rich Wolf, and Noah Tepperberg with the remaining 37.5%.
TAO is recognized for operating a string of upscale venues across North America with Brands including Marquee, the Stanton Social, and vandal. TAO currently has plans to expand in new metropolitan areas such as Los Angeles and Chicago.
James Dolan, MSG’s Executive Chairman commented on the massive partnership:
“Tao Group is a unique and attractive business that furthers our focus on the ‘live experience’ while also exposing us to new areas of growth…..We now have a tremendous opportunity to utilize that expertise across our live offerings, while leveraging each other’s strengths to drive value and growth for both businesses”
As part of the agreement, the owners of TAO will buy $1 million of “MSG inventory or services” and pay their new partners an management fee of $5 million.