In 2017 Madison Square Garden Entertainment purchased a 67% share of the Tao Group for $181 million. MSGE has entered into an agreement to sell their share for $300 million to Mohari Hospitality (founded by the founder of Poker Stars), effectively valuing the entire company at $550 million.
J. Allen Smith, Managing Partner, Mohari said of the transaction:
“Tao Group has grown from an innovator in nightlife to a leader in premium lifestyle and hospitality. Its global footprint of more than 80 branded locations in over 20 markets and best-in-class management infrastructure speaks to the Group’s tremendous potential. We look forward to working with Noah Tepperberg, Jason Strauss and the rest of the dynamic management team to continue growing Tao Group’s business.”
The Tao Group properties include TAO, the Michelin Star-awarded Hakkasan, OMNIA, Marquee, LAVO, Beauty & Essex and more. Future projects include the newly announced Tao Hotel in Orlando, Florida.
Noah Tepperberg, Co-CEO of Tao Group noted:
“Over the last 20 years, we have been laser focused on building premium guest experiences and a company with a global influence in all areas of hospitality, entertainment and pop culture. Mohari’s shared vision, coupled with the strength of its portfolio and leadership, make it an ideal partner as we look at the next chapter for Tao Group. We are excited to build this partnership to scale our companies together.”
TAO Group founders Noah Tepperberg and Jason Strauss will continue to own a 33% share of Tao along with Marc Packer and Rich Wolf.
It is believed that the transaction took place due to the skyrocketing costs MSGE was encountering to develop the Sphere in Las Vegas which is said to be $1 billion over budget and therefore was not able to commit funds to opening new venues.
