Wednesday, November 7, 2012

MSG Pops on Time Warner Deal; Credit the Harvard Kid

Madison Square Garden shares jumped about 4% shortly after news leaked of an impending deal between Madison Square Garden (MSG) and Time Warner Cable (TWC).

Time Warner customers had been blocked from watching MSG as the two companies fought over fees; but the kerfuffle had mostly been ignored until people suddenly started to care about the Knicks again as the team built a seven-game wining streak.

New York Governor Andrew Cuomo and Attorney General Eric Schneiderman plan to announce the decision, allowing them to take credit for the deal. But an unheralded bench-warmer from Harvard named Jeremy Lin may have given MSG the upper hand in the negotiations. That, at least, is what the market seems to think. MSG’s shares shot higher on the news, while Time Warner’s were holding steady, up a little less than 1%.

No comments:

Post a Comment