Madison Square Garden Co. bought about 3.2 million shares of Townsquare Media Inc., a 12 percent stake, as part of an effort to collaborate on music and live events.
MSG purchased the shares from GE Capital, according to a statement Wednesday. Townsquare has a market value of about $230 million, making the MSG stake worth almost $30 million.
Shares of Townsquare rose 11 percent to $9.38 at 9:53 a.m. in New York, their highest price in more than three months. MSG fell less than 1 percent to $184.71.
Last year MSG split itself into two pieces: the sports franchises and entertainment venues on one side, and the regional sports television networks on the other. MSG owns the National Basketball Association’s Knicks and the National Hockey League’s New York Rangers as well as Madison Square Garden and Radio City Music Hall in New York. MSG Networks airs live games and related content for the Knicks, Rangers and NHL’s Islanders and Buffalo Sabres.
Townsquare owns 310 radio stations and more than 325 web sites in 66 markets. The company puts on about 550 live events a year in the U.S. and Canada, including music festivals like the Mountain Jam.