MGM’s Famous Shareholder Thinking Online Gaming, Sports Betting

A 12% purchase — for $1 billion — in an iconic brand such as MGM Resorts doesn’t automatically raise so many eyebrows.

But on Monday, billionaire Barry Diller’s IAC not only made that investment – Diller had an intriguing reason why.

“We are energized and excited to make this investment in MGM,” Diller said, adding his interest in “an area that currently comprises a tiny portion of its revenue — online gaming.”

In a letter to shareholders, Diller and IAC CEO Joey Levin wrote, “We believe MGM represented a once-in-a-lifetime opportunity for IAC to own a meaningful piece of a pre-eminent brand in a large category with great potential to move online.. …The value was too compelling to ignore.”

The BetMGM online gambling brand, a partnership with GVC Holdings since 2018, has gotten off to a tepid start — so this investment may pay dividends there.