In a move that brings together two of New York's biggest entertainment companies, The Madison Square Garden Co. has purchased a 50% stake in Tribeca Enterprises, which runs the Tribeca Film Festival.
The deal, which valued Tribeca Enterprises at $45 million, expands MSG's reach into film and gives it a major player in the festival industry. MSG already has major footprints in television with its suite of MSG networks and professional sports, owning the NBA's Knicks and NHL's Rangers, as well as the iconic venue they play in.
The Tribeca Film Festival gets access to MSG's marketing and promotional platforms and the chance to expand its festival-related programs year round.
Tribeca co-founder Jane Rosenthal will remain as CEO, along with president & COO Jon Patricof. Rosenthal co-founded the company with Robert De Niro and Craig Hatkoff in 2002.
For MSG, the purchase comes roughly a month after Tad Smith replaced Hank Ratner as CEO.
"This partnership with Tribeca Enterprises and the Tribeca Film Festival - one of the top film festivals in the world - strengthens MSG's position in the entertainment industry and is another example of our continued focus on pursuing attractive growth opportunities that make strategic sense for the company," said Smith.
MSG has the opportunity to increase its stake in Tribeca Enterprises over time.
(Photo credit: Tribeca Film Festival)
