According to several published reports, Madison Square Garden Company (MSG) has facilitated plans to sell its cable TV music channel Fuse. JPMorgan Chase has been reportedly tapped to run the sale. The sale of Fuse would be fetching an amount in the USD300 million to USD400 million range.
A Forbes news magazine report speculated that the sale of Fuse was done to fund the Azoff Madison Square Garden Entertainment (AMSGE). The new venture, AMSGE, was created between MSG and Irving Azoff Entertainment, which was also reported by Forbes earlier. The Forbes report also said that the new venture provided MSG an oportunity to exit Fuse as the latter has yet to prove itself as a profitable unit. Moreover, as Fuse is not in line to the core business of MSG, the profits that can be generated from the music market would no longer be available through television, but via a digital platform.
Launched in 1994, Fuse has been a dedicated music channel with original series and specials, live concerts, exclusive interviews and video blocks. It's target demographic is within the 18-34 year-old bracket. Despite rebranding efforts and availability in 73 million households, the channel has yet to generate the numbers it desired to be a flourishing business unit.
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