IAC, the internet and digital media services company led by tycoon Barry Diller, is accelerating its move to MGM Resorts International, with an eye on the growth of the sports betting and online gaming markets.
From Aug. 11-23, IAC bought shares in MGM Resorts for a total of about $41.7 million, increasing its stake in the company to 16.5%, the Las Vegas-based gaming and hospitality company said. in a statement. The move could be an opportunistic buy, as stock prices fluctuated between $27 and $35 in July and August, up from $45 to $48 at the start of the year.
IAC, which supports assets such as the Angi digital marketplace, Dotdash Meredith magazines such as people s Fashion and content brands like Ask and news sites like the everyday beast – revealed the purchase of MGM Resorts two years ago, amid the closure of resorts and casinos during the pandemic era.
At the time, IAC acquired a 12% stake in the company for around $1 billion in August 2020. IAC distributor and CEO Levine described the stake as a source of online gaming revenue. “Similar to Disney’s advantages over pure broadcast companies, with an iconic brand and multiple ways to monetize the same intellectual property across broadcasts, theatrical releases, merchandise and theme parks, we believe MGM is also an aspirational brand that can deliver.” . daily availability and offer games to consumers,” Diller and Levin wrote to shareholders at the time.
BetMGM, MGM Resorts’ 50/50 joint venture with gaming giant Entain, was the vehicle for these aspirations. The sports betting company, which has hired brand ambassadors like Jamie Foxx, Wayne Gretzky, Kevin Garnett and Jerry Ferrara, and rivals like FanDuel and DraftKings, expects more US states to legalize online sports betting. (Online gambling is now legal in 21 states.)
Since 2020, the company has increased its investments, buying $202.5 million worth of shares in hedge fund Corvex Management in February, which increased its stake in MGM Resorts to 14.4%.
In an Aug. 9 letter to shareholders, IAC’s Levin noted strong consumer demand for MGM Resorts properties, which include hotels such as the Bellagio and MGM Grand and Cosmopolitan operations, noting that the tourism giant has seen “an consistently strong consumer demand for entertainment and Las Vegas Vegas.” Highest average daily rates ever.”
“We’ve learned a lot since we got there,” Levin said in May of IAC’s investment in MGM Resorts. “I would say the gaming business, the online gaming business as a whole, which is both sports betting and video games, has exceeded our expectations from when we entered. It really has grown a lot and will continue to grow. For a long period of time.”
Source: Hollywood Reporter
Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.
