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.”
