- Barry Diller’s IAC has increased its investment in gaming and entertainment operator MGM Resorts International
- In August, IAC purchased additional shares of MGM Resorts to increase its stake to 16.5%
- IAC became a shareholder of MGM Resorts two years ago when it acquired shares for $1 billion
Image source: Shutterstock.com (photo by Jonathan Weiss)
MGM Resorts International announced in a filing with the Securities and Exchange Commission (SEC) that digital media and internet services company InterActiveCorp (IAC) has increased its stake in the company.
Buy when the market is down
According to the Schedule 13D/A regulatory filing, the company run by tycoon Barry Diller actively purchased shares of MGM Resorts between August 11 and August 23 and spent approximately $41.7 million on new shares to increase its stake to 16.5%.
IAC’s decision to increase its stake in the games and entertainment sector came at a time when MGM Resorts shares fell significantly from $45-48 at the start of the year to $27-48. $35 in July and August.
IAC CEO Joey Levin hinted at upcoming MGM Resorts stock purchases in an Aug. 9 letter to shareholders in which he highlighted strong consumer demand for MGM Resorts properties from the consumer segment. Recreation. Levin also pointed to the high average daily room rates in Las Vegas.
Levin commented on the company’s investment in MGM Resorts during IAC’s May earnings call, noting that “online gaming activity…exceeded” the company’s expectations, posting considerable growth that should continue in the future.
Stock purchase history
IAC began buying shares of MGM Resorts in August 2020 when it amassed a 12% stake valued at approximately $1 billion. At the time, Diller said IAC was left with cash to burn after Match Group spun off from the business and continued investing in MGM Resorts seeing it as a premier operator in a fast-paced online gambling and betting industry.
In January this year, IAC offered to increase its investment in MGM Resorts and provide financial support to the company to fund its bid to acquire its partner in BetMGM Entain. Days earlier, MGM had tabled more than $11 billion to acquire the British gaming group, but Entain considered the offer to significantly understate the value of the business.
IAC increased its stake in MGM Resorts in February when the media industry and MGM Resorts announced they would each buy a total of 4.5 million shares for a total of $405 million from hedge fund Corvex Management . IAC acquired $202.5 million worth of shares as part of their deal and increased its stake to 14.4%