According to a filing with the Securities and Exchange Commission, InterActive Corp (IAC) has purchased shares of MGM Resorts International worth approximately $41.7 million.
The shares were purchased between August 11 and August 23, increasing IAC’s stake in MGM Resorts to 16.5% as the company looks to capitalize on the burgeoning online gambling and sports betting industries.
Given recent share price fluctuations, the move could be strategic. Prices have ranged between $27 and $35 in the last two months, down from $45 to $48 at the start of the year.
MGM Resorts International and IAC each purchased 4.5 million common shares in MGM Resorts in February, which were sold by management and investor relations firm Corvex Management.
The shares were worth $45 each at the time, and the two companies spent a total of $405 million to acquire them.
IAC previously purchased 12% of MGM Resorts in a deal worth more than $1 billion in 2020. This most recent transaction demonstrates IAC’s ongoing interest in MGM Resorts, as the company continues to grow and expand into the online gambling sector.
The Nevada Gaming Commission (NGC) granted IAC Chairman and Senior Executive Barry Diller permission to work in the casino industry in May of this year.
Despite the fact that the NGC had recently questioned Diller about suspicious bets on Activision Blizzard sales, shortly after the game developer was acquired by Microsoft in January 2022, the decision was made.