The Madison Square Garden Company and Tao Group announced today that MSG has acquired a 62.5 percent common equity interest in a newly formed Tao Group for $181 million. Tao’s management team retains a 37.5 interest in the new company and will continue to run day-to-day operations of its 19 entertainment, dining and nightlife venues in Las Vegas, New York City and Sydney, Australia.
“Over the last 16 years, we’ve seen tremendous growth as we’ve successfully created some of the most enduring brands in the hospitality industry,” said Tao Group co-founder Rich Wolf in the statement. “Our partnership with MSG enables us to continue down this path as we advance our plans to build a global hospitality platform, now backed by an organization with an unparalleled position as one of the world’s leading live entertainment companies.”
In Las Vegas, Tao Group operates the Tao nightclub, dayclub and restaurant at Venetian; the Lavo restaurant and casino club at Palazzo; and Marquee Nightclub and Beauty & Essex restaurant at the Cosmopolitan. The company is set to open five new venues in New York City and eight in Los Angeles, Chicago and Singapore.
Last spring, MSG announced plans to partner with Live Nation and Las Vegas Sands, owners of the Venetian and Palazzo resorts, to build a 17,500-seat arena in Las Vegas off the Strip.