Madison Square Garden Buys 12% Stake In Townsquare

The Madison Square Garden Co. said Wednesday it has acquired a 12% stake in Townsquare Media Inc. , a digital marketing company with a portfolio of radio stations, digital assets and live events. MSG said the two will cooperate in bookings, sponsorship and marketing, and will expand Townsquare's live events business. The deal gives MSG a foothold in the festival business, which it has been exploring, the company said in a statement. MSG bought about 3.2 million shares of GE Capital's Class C common stock, which represents a roughly 12% common equity interest in Townsquare. The stock converted to Class A shares on closing. MSG shares were not yet active in premarket trade, but are up 15% in the year to date, outperforming the S&P 500 , which is up 6.6%.