US media and technology firm IAC/InterActiveCorp (IAC) has become a new and significant investor in MGM Resorts International after acquiring a 12% stake, worth more than US$1 billion, via a series of recent transactions.
The transactions, revealed via SEC filings and a press release sent by MGM overnight, took place between 9 June and 7 August and prompted shares in the global gaming giant to jump 13.77% by close of trade to US$21.65.
IAC is owned by 78-year-old business mogul Barry Diller, the man who founded the Fox Broadcasting Co and USA Broadcasting. Diller is currently listed at number 168 on the Forbes 400 with a net worth of US$3 billion, according to US gaming industry media group CDC Gaming Reports.
“We could not be more excited to welcome IAC and Mr Diller as an investor in MGM Resorts,” said MGM Resorts Chairman of the Board of Directors, Paul Salem.
“Mr Diller and Joey Levin, CEO of IAC, bring vast experience in both entertainment and online commerce and we will take full advantage of their experience.
“IAC’s family of brands and digital expertise are a great complement to the direction MGM Resorts has been taking both in leveraging our digital assets to enhance our guests’ experience and building a leading iGaming and sports betting business in BetMGM.”
Salem added that MGM intended to invite Diller and Levin to join the board of directors.
“IAC’s expertise in growing and expanding brands online is a natural fit for our focus on enhancing the resort experience through curated and personalized offerings, as well as digital enhancements in sports betting and online gaming,” said MGM CEO and President Bill Hornbuckle.
“We appreciate that they share our long-term strategic vision for growth and maximizing value for our shareholders. We welcome their collaboration and are excited at the possibilities it will bring.”
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