IAC/Interactive Takes a $1 Billion Stake in MGM Resorts
IAC/Interactive (NASDAQ: IAC) just bought a 12% stake in casino operator MGM Resorts (NYSE: MGM) valued at approximately $1 billion. IAC Chairman Barry Diller and CEO Joey Levin likened MGM's aspirational-brand qualities, which offer multiple opportunities to monetize its assets, to those of Disney (NYSE: DIS), which cross-pollinates its theme parks, movies, streaming, and merchandise.
What really attracted them, though, was MGM's online gaming business, which they noted almost "rounds down to zero" in terms of current revenue, but holds enormous potential.
Image source: MGM Resorts.
Source Fool.com
