Online potential prompts IAC to acquire $1bn MGM stake
Digital media giant InterActiveCorporation (IAC) has acquired a 12% stake in MGM Resorts International, describing the investment as a “once in a decade” opportunity.
IAC, which has previously acquired, grown and then spun off businesses such as online travel agent Expedia, ANGI Homeservices and just last month, online dating giant Match.com, paid an estimated $1bn for its stake.
“With the separation of Match Group from IAC, and ‘new’ IAC emerging with $3.9bn of cash, no debt, and its opportunistic zeal intact, we are energized and excited to make this investment in MGM,” IAC chairman and senior executive Barry Diller said.
“What initially attracted us to MGM, besides its leadership in leisure, hospitality and gaming, was an area that currently comprises a tiny portion of its revenue – online gaming.”
IAC chief executive Joey Levin added that the business would serve as a minority investor and long-term strategic partner to the operator.
“[We] would welcome the opportunity to contribute to MGM’s success in any way that MGM’s board would look favorably on our involvement,” Levin said.
MGM Resorts chair Paul Salem said the business “could not be more excited” to welcome IAC as an investor, adding that the business would be invited to nominate an appointment to the operator’s board.
Mr [Barry] 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,” Salem explained. “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.”