The top two leaders of IAC/InterActiveCorp, a little more than a week after the company invested more than $1 billion into MGM Resorts International, were appointed to casino giant’s board of directors.
MGM said Thursday it added IAC Chairman and Senior Executive Barry Diller and CEO Joey Levin to the company’s board, giving the panel 14 members.
IAC acquired more than 59 million shares of MGM Resorts over a nine-week period starting at the beginning of June, taking an ownership stake of 12% through some 34 stock transactions. Diller, a billionaire media mogul, called the ownership stake a “minority position.”
MGM Chairman Paul Salem said in a statement that adding Diller and Levin would “elevate” the company’s leadership in developing digital products.
“IAC’s significant investment, expertise, and support come at a pivotal time and will play a key role in MGM’s strategy to seize emerging opportunities and lead the industry with unparalleled in-person and digital experiences,” Salem said.
Diller, 78, founded Fox Broadcasting Co. and USA Broadcasting. He is currently No. 168 on the Forbes 400 with a net worth of $3 billion. He founded IAC in 1995 and is also chairman of online travel giant Expedia, which acquired its holding company, Liberty Expedia, in a $2.6 billion deal in 2019.
In a letter to IAC shareholders last week, Diller said the potential for MGM’s online gaming business – “a portion of its revenue so small that it rounds down to zero” – drove his investment thesis.
“We believe 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,” Diller wrote. “IAC has always been opportunistic with its capital, and if ever there was a time, this moment is unique.”
Levin, in addition to his CEO position with IAC, serves on IAC’s board. Levin has served in various roles at IAC since he joined the company in 2003 working in the Mergers & Acquisitions group.
MGM Resorts CEO Bill Hornbuckle, who is also a company board member, said the addition of Diller and Levin brings a “vision to help us to marry our online and resort-based experiences and build brand loyalty to increase our wallet share in each area.”
Shares of MGM Resorts closed at $20.83 on the New York Stock Exchange, down 7 cents or 0.33%.
Howard Stutz is the executive editor of CDC Gaming. He can be reached at hstutz@cdcgaming.com. Follow @howardstutz on Twitter.
