InterActive Corp has bought a 12 per cent stake in the company.
US.- InterActive Corp has announced it has invested $1 billion in MGM Resorts, buying a 12% stake in the Las Vegas-based company.
It comes after last month MGM announced substantial lay-offs across its properties following a 91 per cent drop in revenue.
But InterActive Corp founder and owner Barry Diller says he made the investment owing to the brand’s online potential. He said he’d been looking to enter the online gambling market for some time.
Diller said in a letter to shareholders that “MGM presented a ‘once in a decade’ opportunity for IAC to own a meaningful piece of a preeminent brand in a large category with great potential to move online.”
MGM Resorts Chairman of the Board of Directors, Paul Salem, said: “We could not be more excited to welcome IAC and Mr. Diller as an investor in MGM Resorts. Mr. Diller and Joey Levin, CEO of IAC, bring vast experience in both entertainment and online commerce and we will take full advantage of their experience.
“IAC’s family of brands and digital expertise are a great complement to the direction MGM Resorts has been taking both in leveraging our digital assets to enhance our guests’ experience and building a leading iGaming and sports betting business in BetMGM. We welcome IAC as a long-term strategic partner and intend to invite them to join our Board of Directors.”