We continue our study of string theory in a background that interpolates between $AdS_3$ in the infrared and a linear dilaton spacetime $R^{1,1}times R_phi$ in the UV. This background corresponds via holography to a $CFT_2$ deformed by an operator of dimension $(2,2)$. We discuss the structure of spatial entanglement in this model, and compare it to the closely related $Tbar T$ deformed $CFT_2$.
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