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MGM Resorts International and IAC purchase nine million MGM Resorts shares

MGM Resorts International and IAC have each purchased 4.5 million common shares in MGM Resorts, sold to them by fund management and investor relations firm, Corvex Management. 

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The shares were valued at $45 each, with a combined total of $405m spent by the two companies in acquiring the stock.  

Following the transaction, IAC now owns approximately 63.5 million shares in the MGM Resorts business, equating to 14.4% of common stock available. 

Jonathan Halkyard, CFO and Treasurer, MGM Resorts International, commented: “Today's announcement is a testament to the confidence we have in the long-term trajectory of our business and reflects the commitment we have to our capital allocation strategy, which includes returning cash to shareholders and maintaining a strong balance sheet. 

“With this purchase, we have now bought back approximately 11.5% of our outstanding shares, showing our continued confidence in MGM stock.” 

Corvex Management, which at the end of 2019 managed stock valued at $2.1bn, will retain 6.7 million shares, equating to 1.5% of MGM Resorts’ common stock.  

Keith Meister, Managing Partner and Chief Investment Officer, Corvex Management, said: “I'm pleased by the transformative transactions the Company has undertaken since I joined the Board in 2019. I look forward to continuing to serve as a Board member.” 

When this financial agreement has been completed, scheduled for 16 February 2022, MGM Resorts will have $637m worth of stock still outside of its control. In February 2020, the company issued a $3bn stock repurchase program to reacquire shares it had sold over the years.  

Paul J. Salem, Chairman of the Board, MGM Resorts, said: “Keith Meister shares our strategic vision for MGM Resorts to be the world's premier gaming entertainment company, and we look forward to having him continue to serve as a valuable member of our Board.”


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