The rising fortunes of MSG Co. are separating the Dolan family's major holdings into "winners and losers, fueling speculation that the family will part with their underperforming cable assets," which include MSG Networks and AMC Networks, according to Gerry Smith of BLOOMBERG NEWS. BTIG Research analyst Brandon Ross said that starting next month, a conservative tax attorney will "say the family can sell assets without endangering the tax-free status of the spinoff." A source said that is "among the reasons the Dolans would be willing to sell MSG Networks to the right suitor at the right price." Ross: "Everyone is looking to Oct. 1 as the date that MSG Networks really comes in play." Smith noted MSG Nets split from MSG Co. in '15 after "pressure from an investor to find more value." The net "faces greater scrutiny from investors than its peers" because it is the only RSN that is a "standalone public company." MSG Nets' revenue increased 3% last year by "demanding higher rates from pay-TV providers." But MSG Nets also is losing about 2% of subscribers "each year." Analysts said that the RSN has "tried to stem the losses by signing a distribution deal with a new online TV provider that hasn’t been announced, but it faces a key carriage renewal soon" with Charter Communications, the main cable provider for N.Y. (BLOOMBERG NEWS, 9/7).
