The battle of celebrity exes has a new arena: The boardroom.
SiTV, parent company of the Jennifer Lopez-backed NUVOtv, has won its bid to purchase cable music channel Fuse from Madison Square Garden for an estimated $226 million. That would be $26 million higher than the reported amount of the previous bid made by JLo's ex-boyfriend, Sean Combs, aka Puffy Puff Daddy P. Diddy Diddy Puff Daddy.
So what does this deal mean for Madison Square Garden, which many people associate with New York sports teams such as the Ranger and New York Knicks, which named legendary basketball coach Phil Jackson as president?
Richard Tullo, director of research at Albert Fried, covers MSG's stock and predicts the proceeds from the disposition of Fuse will find their way directly into shareholders' pockets.
"We think that's just enough to get management off their position," said Tullo on the “ Talking Numbers” segment on CNBC’s “Street Signs.” "We think they'll start paying a dividend and perhaps they'll also buy back shares, initially about a million shares. They'll probably leverage up, raise about a billion dollars for a more significant buyback over the next 24 to 36 months."
Albert Fried has a “buy” rating on MSG.
Jeff Tomasulo, managing partner of Belpointe Alternative Investments, believes the charts for MSG are bullish, especially if it breaks above $62 per share. The stock traded at $57.31 an hour before the close on Friday.
"You can't get any better than this," said Tomasulo. "In 2012, this stock had a tremendous up move … [it] nearly tripled. And, now, it's doing exactly what I wanted to see: It's sitting in a little bit of a range between $54 and $62. A break above $62, you get in long and that's a continuation of that trend."
To see the full discussion on Madison Square Garden, with Tullo on the fundamentals and Tomasulo on the technicals, watch the video above.
- Investment & Company Information
- Madison Square Garden
- Sean Combs
- New York Knicks