What happened Shares of Madison Square Garden Entertainment (NYSE: MSGE) and MSG Networks (NYSE: MSGN) fell 9% and 8%, respectively, after the former said it was acquiring the latter for about $922 million in an all-stock deal, a 4% premium to MSG Networks' closing value on March 10. So what MSG Entertainment says the acquisition of its media company sibling paves the road for it to generate significant incremental revenue by allowing it to "capture more of the emerging revenue opportunity related to the potential expansion of legalized sports gaming in its market." Image source: Getty Images. MSG Entertainment owns various sports and concert complexes, including the iconic Madison Square Garden and Radio City Music Hall. MSG Networks broadcasts various New York sports team games and events. Under terms of the deal, MSG Networks shareholders will receive 0.172 shares of MSG Entertainment for each share of MSG Networks they own. Now what The merger of the two MSG companies is a reunion of sorts, as both businesses are the result of spinoffs from what was once The Madison Square Garden Company. In September 2015, MSG Networks was spun off from the parent, which retained ownership of the sports venue and related properties, and then in April 2020, the parent was rebranded as Madison Square Garden Sports (NYSE: MSGS) and the venue and entertainment division was spun off as Madison Square Garden Entertainment. Now the spinoffs are being reunited. The merger announcement said, "The combined company would have a stronger liquidity position to support its live entertainment business, which following the shutdown of its venues due to the pandemic is now on a path back to normal operations." 10 stocks we like better than Madison Square Garden Entertainment Corp.When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Madison Square Garden Entertainment Corp. wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source