Lastly, shares of owner and operator of regional sports and entertainment networks, MSG Networks, Inc. (MSGN, Financial) came under pressure following the announcement that it would be acquired by Madison Square Garden Entertainment Corp. (MSGE). We own both sides of this trade and in our view the combined company will lead to a stronger liquidity position to fund current and future growth initiatives, including the MSG Sphere in Las Vegas, as well as support opportunities in sports gaming such as specialized broadcasts, licensing, branding, and sponsorships on a go forward basis. Additionally, the combined company is expected to realize meaningful tax efficiencies with MSGE’s Net Operating Losses and plans to accelerate the depreciation recognition of its Las Vegas Sphere.
From John Rogers (Trades, Portfolio)' Ariel Fund second-quarter 2021 commentary.
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