(Updates with official announcement of the deal)
April 3 Latino-focused cable network NUVOtv,
backed by Jennifer Lopez, said its parent company SiTV Media Inc
would buy Madison Square Garden Co's Fuse TV.
Madison Square Garden will receive $226 million and a 15
percent stake of the combined company and will also gain a seat
on the SiTV board.
"It enhances our distribution relationships, dramatically
expands our aggregate subscriber base, provides substantial
economies of scale, affords unique opportunities for programming
and cross-promotion...," NUVOtv Chief Executive Michael
Schwimmer said in a statement.
Fuse, an American music television network, reaches about 74
million homes through pay-TV systems including DirecTV
and Dish Network Corp.
As part of the acquisition, NUVOtv also plans to utilize
Fuse's street front studio on Seventh Avenue in Manhattan -
across from Madison Square Garden.
The Dolan family, which spun off Madison Square Garden from
Cablevision Systems Corp four years ago, had been asking
for about $400 million for Fuse, a Bloomberg report said last
NUVOtv made a $200 million cash and stock offer last month.
The offer pitted Lopez, chief creative officer and minority
stakeholder of NUVOtv, against her former boyfriend hip-hop star
Sean Combs, who had made a bid of about $200 million for Fuse
The deal is expected to close in Madison Square Garden's
fiscal 2015 first quarter, ending Sept. 30.
Madison Square Garden shares were down 0.19 percent at
$57.13 in morning trading on the Nasdaq on Friday.
(Reporting by Ankush Sharma in Bangalore; Editing by Gopakumar