When I think of New York, I think of the ever-reliable Bodega stands and black coffee in blue Anthora cups. I also think of Union Square and tourist traps. Then there are places like Times Square, Top of the Rock and the Empire State Building — landmarks quintessential to the city.

The split of Madison Square Garden Company is representative of other changes to come in New York.  PHOTO VIA FLICKR USER MATTHIAS ROSENKRANZ

The split of Madison Square Garden Company is representative of other changes to come in New York. PHOTO VIA FLICKR USER MATTHIAS ROSENKRANZ

Another iconic building is Madison Square Garden. Aptly dubbed “The World’s Most Famous Arena,” Madison Square Garden hosts everything from professional sporting games to concerts by legendary musicians. Having first opened in 1968, Madison Square Garden is the third-busiest music arena in the world, after the Manchester Arena and The O2 Arena, both of which are located in England.

The Madison Square Garden Company was established as a publicly traded company in 2010 and has experienced much success since then. However, in October 2014, the company expressed its interest in splitting into two sectors. After months of speculation, on March 27, the company finally confirmed it would split into two segments, splitting media from live sports and entertainment.

The Madison Square Garden Company has already filed an initial Form 10 Registration Statement with the U.S. Securities and Exchange Commission, and the split is scheduled to be completed by the end of 2015, according to a Friday release from the company.

The company said in the release its ultimate goal is “increased strategic flexibility to pursue its own distinctive business plan and allow each to have a capital structure and capital return policy that is appropriate for its business.”

The sale of the Los Angeles Clippers NBA basketball team to Steve Ballmer may have set a precedent for other large companies, as it showed just how valuable these franchises can be.

No news has been released in regard to who will be appointed the executives to the soon-to-be two companies. However, JPMorgan Chase, LionTree Advisors and Sullivan & Cromwell, a large law firm, have been diligently assisting Madison Square Company in its transition from one to two companies.

So what does this all mean? The new sports and entertainment branch will include professional sports franchises such as the New York Knicks NBA basketball team, the New York Rangers NHL hockey team and the New York Liberty WNBA basketball team. It will also include performance venues such as the Madison Square Garden namesake arena and Radio City Music Hall.

Madison Square Garden is not only an iconic venue, but also a cultural symbol of New York. This news of the split has received some negative responses from the community. However, in constantly changing times, even large and successful companies are not immune to economic hardships and failures. This split will ultimately allow the company to continue offering its services to the public, and will create even more value for its shareholders.

It will be very interesting to watch how much the city evolves as time goes by, with the split of Madison Square Garden marking the start of the changes to come.