{"id":319411,"date":"2024-05-08T14:09:52","date_gmt":"2024-05-08T19:09:52","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=319411"},"modified":"2024-05-09T09:04:24","modified_gmt":"2024-05-09T14:04:24","slug":"iac-now-controls-20-of-mgm-resorts-equity","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/iac-now-controls-20-of-mgm-resorts-equity\/","title":{"rendered":"MGM Resorts (NYSE: MGM): IAC Now Owns 20% International Shares"},"content":{"rendered":"

Barry Diller\u2019s IAC\/InterActiveCorp (NASDAQ: IAC) now controls 20% of MGM Resorts International\u2019s (NYSE: MGM) shares outstanding, making the conglomerate by far the largest investor in the casino giant.<\/p>\n

\"IAC
IAC CEO Joey Levin in a 2019 interview. He said the company now owns 20% of MGM Resorts stock. (Image: Patrick Fallon\/Bloomberg<\/em>)<\/figcaption><\/figure>\n

In his first-quarter letter to investors, which coincided with the company\u2019s earnings report out Tuesday, IAC CEO Joey Levin told shareholders the firm now controls 20% of MGM equity. That makes the gaming operator IAC\u2019s biggest investment, though Levin noted that while the Bellagio operator is fundamentally sound, the performance of the stock doesn\u2019t reflect those strong fundamentals.<\/p>\n

Our largest investment, MGM, did similarly well with a similar failure to move its share price, posting record first quarter financial and operational results and generating Free Cash Flow of just under $400 million \u2014 we are pleased to own over 20% now,\u201d wrote the IAC chief executive officer.<\/p><\/blockquote>\n

A report in Barron\u2019s<\/em> indicated IAC\u2019s unrealized gain on its MGM stake is close to $163 million. That despite the fact the stock is off 7.6% over the past 12 months and 10.2% year to date.<\/p>\n

MGM Buybacks Helped IAC Stake Grow<\/h2>\n

In August 2020, IAC bought $1 billion worth of MGM shares and added another $1 billion over the subsequent three months.<\/p>\n

In February 2022, Diller\u2019s company partnered with MGM to buy $405 million worth<\/a> of the casino operator\u2019s shares sold by Keith Meister\u2019s Corvex Management. Since building its stake in MGM in 2020, IAC hasn’t pared it.<\/p>\n

\n

Conversely, Diller\u2019s firm has increased its position in the largest operators on the Las Vegas and that increased percentage has been helped in large part by MGM\u2019s prolific share buyback efforts — something Levin acknowledged in<\/a> his fourth-quarter letter to IAC investors.<\/p>\n<\/div>\n

When it reported first-quarter results last week, MGM told investors it bought back 12 million of its shares in the January through March period, adding that since 2021, it has slashed its shares outstanding<\/a> tally by 36%.<\/p>\n

How IAC Figures as an MGM Investor<\/h2>\n

When IAC initially got involved with MGM<\/a> nearly four years ago, Diller\u2019s company noted it viewed the gaming company as a long-term investment supported by a strong balance sheet, an impressive Las Vegas portfolio, and exposure to online gaming.<\/p>\n

\n

At the time, the move was a departure from the norm for IAC because the firm typically doesn\u2019t take passive positions in companies and sit on stock. However, it\u2019s done just that with MGM while not ruffling feathers at the casino operator.<\/p>\n<\/div>\n

As noted above, IAC is MGM\u2019s biggest shareholder and that heft is truly impressive. The conglomerate owns 10x as much MGM equity as does Corvex, and IAC\u2019s percentage of MGM shares held is slightly more than that of fund giants Vanguard, BlackRock and State Street Global Advisors combined.<\/p>\n","protected":false},"excerpt":{"rendered":"

Barry Diller\u2019s IAC\/InterActiveCorp (NASDAQ: IAC) now controls 20% of MGM Resorts International\u2019s (NYSE: MGM) shares outstanding, making the conglomerate by far the largest investor in the casino giant. In his first-quarter letter to investors, which coincided with the company\u2019s earnings report out Tuesday, IAC CEO Joey Levin told shareholders the firm now controls 20% of […]<\/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],"tags":[81903,81898],"acf":[],"yoast_head":"\nIAC Now Controls 20% of MGM Resorts Equity<\/title>\n<meta name=\"description\" content=\"IAC Now Owns 20% of MGM Resorts International Shares.\" \/>\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\/iac-now-controls-20-of-mgm-resorts-equity\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"IAC Now Controls 20% of MGM Resorts Equity\" \/>\n<meta property=\"og:description\" content=\"IAC Now Owns 20% of MGM Resorts International Shares.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/iac-now-controls-20-of-mgm-resorts-equity\/\" \/>\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=\"2024-05-08T19:09:52+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-05-09T14:04:24+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=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/iac-now-controls-20-of-mgm-resorts-equity\/\",\"url\":\"https:\/\/www.casino.org\/news\/iac-now-controls-20-of-mgm-resorts-equity\/\",\"name\":\"IAC Now Controls 20% of MGM Resorts Equity\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/iac-now-controls-20-of-mgm-resorts-equity\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/iac-now-controls-20-of-mgm-resorts-equity\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/05\/JL.jpg\",\"datePublished\":\"2024-05-08T19:09:52+00:00\",\"dateModified\":\"2024-05-09T14:04:24+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"IAC Now Owns 20% of MGM Resorts International Shares.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/iac-now-controls-20-of-mgm-resorts-equity\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/iac-now-controls-20-of-mgm-resorts-equity\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/iac-now-controls-20-of-mgm-resorts-equity\/#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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