{"id":310799,"date":"2024-02-14T15:18:34","date_gmt":"2024-02-14T21:18:34","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=310799"},"modified":"2024-02-15T12:20:11","modified_gmt":"2024-02-15T18:20:11","slug":"mgm-propels-iac-shares-to-strong-intraday-run","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/mgm-propels-iac-shares-to-strong-intraday-run\/","title":{"rendered":"MGM Provides Support to IAC Investment Thesis, Share Stake Rises"},"content":{"rendered":"

Barry Diller\u2019s IAC\/InterActiveCorp (NASDAQ: IAC) posted fourth-quarter revenue that missed Wall Street estimates. But the shares rallied Wednesday due in part to the company\u2019s large stake in MGM Resorts International\u00a0 (NYSE: MGM).<\/p>\n

\"IAC
IAC CEO Joey Levin in a 2019 interview. He lauded the company’s MGM Resorts stake in a new letter to investors. (Image: Patrick Fallon\/Bloomberg<\/em>)<\/figcaption><\/figure>\n

The sharp move higher by the media conglomerate\u2019s stock arrived as MGM slumped. That’s because investors paid more attention to revenue retrenchment at the operator\u2019s regional casinos<\/a> rather than focusing on record reports from its Las Vegas and Macau properties.<\/p>\n

Our largest holding, MGM is a keen beneficiary of growth in the travel & leisure sector, which has materially outpaced broader consumer spending generally for the last 20 years,\u201d<\/strong> wrote IAC CEO Joey Levin in a letter to investors. “Consumers\u2019 ever-increasing time spent on social media has elevated exposure and access to new experiences, making the top of the travel & leisure funnel — fear of missing out (FOMO) — only grow.”<\/p><\/blockquote>\n

Diller and Levin joined MGM\u2019s board of directors<\/a> in August 2020 after IAC invested $1 billion in the gaming company\u2019s shares.<\/p>\n

MGM Has Been Good to IAC<\/h2>\n

IAC was prescient with its purchase of MGM equity, stepping into the gaming stock in 2020 after it was drubbed due to the coronavirus pandemic.<\/p>\n

\n

Diller’s company initially bought shares of the Bellagio operator at $12.17 before adding another $1 billion worth of the stock over the succeeding three months. Even when accounting for Wednesday\u2019s nearly 6% decline, MGM has rewarded IAG\u2019s investment. Using $12.17 as the starting point, the gaming stock is up 3.5x since then.<\/p>\n<\/div>\n

As of mid-2022, IAC owned 15% of MGM\u2019s shares outstanding. But that percentage has increased substantially due to the casino giant being a dedicated buyer of its own shares, thus reducing the amount of shares outstanding.<\/p>\n

\u201cWe owned nearly 20% at the end of 2023, and with continued repurchases, could still own more before the secret gets out,\u201d added Levin in the investor letter.<\/p>\n

IAC Remains Bullish on MGM<\/h2>\n

For IAC, MGM is a minority, passive investment. But the owner of Angi, Dotdash Meredith, and other holdings is overtly constructive on the gaming company\u2019s prospects. Levin sees the Cosmopolitan operator benefiting as consumer consumption trends shift from goods to services.<\/p>\n

As social currency moves away from ownership (less shareable online) towards experiences, MGM has gained,\u201d<\/strong> he noted in his letter to shareholders. \u201cMGM is also the market leader in Las Vegas, which showed the world again this past weekend why it\u2019s the global center for sports and entertainment experiences: nearly every major live tour, show, fight, race, competition, chef, and soon to be every major league sport, has a Las Vegas outpost, and MGM often plays host.\u201d<\/strong><\/p><\/blockquote>\n

Specific to his company, Levin argued that IAC\u2019s current market capitalization reflects its cash on hand and investments in MGM and car rental firm Turo, and nothing else. That’s implying those who buy the stock today get the likes of Angi and Dotdash for \u201cfree.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Barry Diller\u2019s IAC\/InterActiveCorp (NASDAQ: IAC) posted fourth-quarter revenue that missed Wall Street estimates. But the shares rallied Wednesday due in part to the company\u2019s large stake in MGM Resorts International\u00a0 (NYSE: MGM). The sharp move higher by the media conglomerate\u2019s stock arrived as MGM slumped. That’s because investors paid more attention to revenue retrenchment at […]<\/p>\n","protected":false},"author":46,"featured_media":212827,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,33810,81886],"tags":[81903,81898,23],"acf":[],"yoast_head":"\nMGM Propels IAC Shares To Strong Intraday Run<\/title>\n<meta name=\"description\" content=\"MGM Provides Support to IAC Investment Thesis, Stake in Casino Giant Rises.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/mgm-propels-iac-shares-to-strong-intraday-run\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"MGM Propels IAC Shares To Strong Intraday Run\" \/>\n<meta property=\"og:description\" content=\"MGM Provides Support to IAC Investment Thesis, Stake in Casino Giant Rises.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/mgm-propels-iac-shares-to-strong-intraday-run\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2024-02-14T21:18:34+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-02-15T18:20:11+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/05\/JL.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2200\" \/>\n\t<meta property=\"og:image:height\" content=\"1467\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/mgm-propels-iac-shares-to-strong-intraday-run\/\",\"url\":\"https:\/\/www.casino.org\/news\/mgm-propels-iac-shares-to-strong-intraday-run\/\",\"name\":\"MGM Propels IAC Shares To Strong Intraday Run\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/mgm-propels-iac-shares-to-strong-intraday-run\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/mgm-propels-iac-shares-to-strong-intraday-run\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/05\/JL.jpg\",\"datePublished\":\"2024-02-14T21:18:34+00:00\",\"dateModified\":\"2024-02-15T18:20:11+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"MGM Provides Support to IAC Investment Thesis, Stake in Casino Giant Rises.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/mgm-propels-iac-shares-to-strong-intraday-run\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/mgm-propels-iac-shares-to-strong-intraday-run\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/mgm-propels-iac-shares-to-strong-intraday-run\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/05\/JL.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/05\/JL.jpg\",\"width\":2200,\"height\":1467,\"caption\":\"IAC CEO Joey Levin in a 2019 interview. 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