MSG Takes 12 Percent Stake in Townsquare Media

• Stake is worth nearly $30 million
• Townsquare owns 310 radio stations
• More than 325 websites in 66 U.S. markets

Madison Square Garden Co. has taken a stake in Townsquare Media Inc. as part of an effort to cooperate on new live-event opportunities.

MSG bought about 3.2 million shares of Townsquare, or a 12% stake, from GE Capital, the companies said Wednesday, confirming a Tuesday report by The Wall Street Journal. Given Townsquare’s market value of about $230 million, the stake is worth nearly $30 million.

MSG was separated from MSG Networks , which owns regional sports and entertainment networks, last year. MSG owns teams including New York’s Knicks and Rangers and venues including Madison Square Garden and Radio City Music Hall in New York.

Townsquare owns 310 radio stations and more than 325 websites in 66 U.S. markets, among other media assets focused on small and midsize communities. It also puts on some 550 live events a year in the U.S. and Canada, including music festivals like the Mountain Jam and the America on Tap craft-beer series.

David O'Connor, president and CEO of The Madison Square Garden Company, commented, "Using its diversified portfolio of radio stations, digital assets and live events, Townsquare creates compelling content that brings people together and builds communities. We understand and share their belief in the value of exceptional, live experiences, and look forward to working together through this new partnership -- which is another opportunity that our partner, Irving Azoff, brought to our attention –to drive additional value and growth for both businesses."

"I have had the opportunity to work with Steven and the Townsquare team closely this past year. These guys really excel and are a perfect complement to what we are building at Azoff MSG Entertainment. When this opportunity presented itself, my partners at MSG enthusiastically invested. I look forward to deepening our relationship and working on both existing and new projects with Townsquare and MSG," said Irving Azoff, chairman and CEO of Azoff MSG Entertainment.

MSG and Townsquare will seek to utilize their shared experience in music and live events to explore bookings, sponsorship and marketing opportunities, as well as the potential expansion of Townsquare's live offerings. MSG's investment in Townsquare will also provide MSG with additional insight into the festival business, which MSG has been exploring as part of its larger goal to strengthen and expand its position in the live experience space.

Townsquare was founded in 2009 by Chief Executive Steven Price, a former head of telecommunications, technology and media investing at private-equity firm Centerbridge Partners. Before that, he was deputy assistant secretary of defense for spectrum, space and communications from 2001 to 2003.