Why Madison Square Garden Entertainment Shares Are Tumbling Today

Madison Square Garden Entertainment Corp MSGE shares are trading lower Wednesday after the company announced a secondary offering.

What Happened: After the close on Tuesday, MSG Entertainment announced that Sphere Entertainment Group commenced an underwritten secondary offering of 5.25 million shares of MSGE common stock.

Sphere Entertainment intends to grant the underwriters a 30-day option to purchase up to an additional 787,500 shares at the offering price. 

MSG Entertainment said it intends to repurchase approximately $25 million worth of its shares directly from the selling stockholder.

Sphere Entertainment will receive all of the net proceeds from the offering. MSG Entertainment said it will not be selling any shares as part of the offering.

See Also: Why UPS Stock Is Sliding Wednesday 

MSGE Price Action: MSG Entertainment shares were down 9.56% at $35.85 at the time of publication, according to Benzinga Pro.

Photo: Andrew Scozzari from Pixabay.