IAC (Nasdaq: IAC) paid $41.7 million in August to acquire another 1.19 million shares, the company divulged in an SEC filing. The stock, acquired in a series of open market transactions, is just the latest investment that Barry Diller’s internet and media company has made in MGM (NYSE: MGM) over the past few years. It remains MGM’s largest shareholder.
The MGM Resorts portfolio includes 32 hotel and gaming properties around the globe, with clusters in Las Vegas and China. Its iGaming and sports betting endeavors are held inside BetMGM, a 50-50 joint venture with Entain (LSE: ENT).
BetMGM has about 22% of the combined U.S. sports betting and iGaming market, according to February data from Eilers & Krejcik, second only to FanDuel and ahead of DraftKings. That’s in line with expectations laid out by the company last year, when it discussed a long-term market share of 20-25%.
Representatives for MGM and IAC, which owns Dotdash and Angi, didn’t immediately respond to requests for comment on the new stock purchase.
IAC first started investing in MGM in early 2020 when the stock was priced at $12.17—it’s trading Friday morning around $35.10—and has told its shareholders that the ability to dramatically increase that stake was a “once-in-a-decade opportunity.” In a recent earnings call, IAC CEO Joseph Levin reiterated that MGM still has a lot of room to grow.
That said, MGM’s stock is down 31% from its 12-month high, a common drop among many public U.S. gaming companies, which has affected IAC’s business. Earlier this month the company reported a bigger quarterly loss than expected, driven partially by $825 million in unrealized losses on its MGM position.
Both MGM and IAC stocks are relatively flat in trading Friday morning.