Barry Diller’s IAC/InterActive Chairman of the Board said it had taken a 12% interest in MGM Resorts International. The stake’s value is estimated at $1 billion, making it a minority investor.
Barry Diller is leading a reorganization of IAC and the online gaming component of MGM is stirring its interest.
"What initially attracted us to MGM, besides its leadership in leisure hospitality and gaming, was an area that currently comprises a tiny portion of its revenue – online gaming," said the Chairman of the Board.
The BetMGM sports betting platform is currently live in seven states and on track to expand to four by the end of 2020. The site is slated to bring in $130 million in net revenue for the year.
As gaming in the U.S. requires to have a physical presence, IAC has made an exception for MGM Resorts which is best-known for having a large real estate footprint. Indeed, the New-Work based conglomerate only owned asset-light, global, internet and media brands until now.
"Similar to Disney’s advantages over pure-play streaming companies with an iconic brand and multiple avenues to monetize the same intellectual property [...] We believe MGM also is an aspirational brand, which could be delivered with daily accessibility and offer gaming consumers (including the 34 million M-life Rewards members) a wider range of services, both physical and digital, than any competitor," IAC said. "Our history in driving off-line to online conversion gives us confidence in the path."