IAC Increases Stake In MGM Resorts In Bet On Online Gambling Growth

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IAC, digital media and internet service company founded by mogul Barry DillerMGM has been upped by. Resorts InternationalWe are watching the online gambling and sports betting markets grow.

Between Aug. 11-23, IAC acquired shares in MGM Resorts The total amount of the investment was $41.7 million. This increased its stake to 16.5 percent in the company Las VegasIn a filing with The Securities And Exchange Commission On Friday. The The move could be an opportunity buy considering that share prices ranged from $27 to $35 in the past July And AugustThis is a drop of $45-$48 from the beginning.

IAC — which backs assets like the Angi digital marketplace, Dotdash Meredith magazines like People And InStyle Content brands such as Ask Sites like Newswire The Daily Beast — disclosed a buy in to MGM Resorts Two years ago, during the pandemic-era closures of casinos and resorts.

At IAC owned a 12.5% stake in the company at the time. It was worth approximately $1 billion. Aug. 2020. Diller IAC CEO Levin The bet was described as one on online gambling revenue. “Similar to Disney’s advantages over pure-play streaming companies with an iconic brand and multiple avenues to monetize the same intellectual property between streaming, theatrical releases, merchandise, and theme parks, we believe MGM also is an aspirational brand, which could be delivered with daily accessibility and offer gaming consumers,” Diller And Levin Addressed the letter to shareholders at the same time.

BetMGM, MGM Resorts’ joint venture with gambling giant EntainThese aspirations have been realized through the creation of. The sports betting firm — which has signed up brAnd ambassadors like Jamie Foxx, Wayne Gretzky, Kevin Garnett and Jerry Ferrara — and its rivals like FanDuel and DraftKings are counting on more U.S. states legalizing online sports betting. (Online In 21 states, gambling is legal.

Since 2020: The company bought $202.5 million worth shares to increase its stake in the company. February From hedge fund Corvex ManagementMGM increased its stake. Resorts To 14.4 percent

In a shareholder letter on Aug. 9, IAC’s Levin MGM has seen a strong consumer demand Resorts properties — which include hotels like the Bellagio MGM Grand Operations of the Cosmopolitan — noting the resort giant saw “consistent strong demand from the leisure consumer and all-time high average daily room rates for Las Vegas.”

“We’ve learned a lot since we’ve been there,” Levin During an earnings call May, of IAC’s investment in MGM Resorts. “I’d say that the gaming business, both the online gaming business overall, which is both sports betting and i-gaming, has outperformed our expectations relative to when we came in. It’s grown really tremendously, and that growth is going to continue for a long time.”

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