Analyst likes chancs of Madison Square Garden going private

In a recent report to investors, one analyst who follows Cablevision Systems Corp. said that following the spinoff of Madison Square Garden last month, "we believe the potential for MSG to be taken private . . . should provide a floor on the value" of MSG stock.

"It's a possibility that can't be ruled out," said Christopher Marangi of Gabelli & Co. in Rye, in Westchester County. "It's not going to happen anytime soon, but it may be a possibility in the next few years."

Two analysts are listed by Bloomberg News as following the publicly traded sports and entertainment business. Only Marangi dealt with the notion of MSG going private.

Bethpage-based Cablevision, which owns Newsday, spun off Madison Square Garden - which includes the New York Knicks basketball team, the New York Rangers hockey team, Radio City Music Hall, the Beacon Theatre and the Chicago Theater - to better focus on its core cable business.

But the Dolan family, which owns the controlling interest in Cablevision, has always appeared to prefer private ownership over public ownership, analysts have said. The Dolans have tried to take Cablevision private three times, Marangi noted, adding that some companies prefer to be private, avoiding the glare of the Wall Street spotlight.

Marangi and one other analyst like what they see about MSG. Marangi said MSG will ultimately trade at between $26 to $32 a share. Benjamin Mogil of Thomas Weisel Partners has a 12-month price target of $32. The stock rose 22 cents a share Friday to close at $19.50.

MSG spokesman Barry Watkins said the company does not comment on analysts' reports.