IAC, a leading ecommerce company known for its successful ventures such as Match Group and Vimeo, has recently made a bold move by acquiring a substantial 20% stake in MGM’s casino business, MGM Resorts International (NASDAQ:MGM). This strategic investment marks IAC’s entrance into the world of online gambling and entertainment, and has the potential to shake up the industry in a significant way.
The deal, valued at approximately $1 billion, gives IAC a seat at the table in one of the biggest names in the casino and entertainment industry. MGM Resorts International is known for its iconic properties such as the Bellagio and MGM Grand in Las Vegas, as well as its online gaming platform, BetMGM. With IAC’s expertise in digital commerce and technology, the partnership is poised to revolutionize the way people engage with online gambling and entertainment.
IAC’s decision to invest in MGM comes at a time when the online gambling market is experiencing rapid growth. With the legalization of sports betting in multiple states across the US, the industry is expected to reach a value of $127 billion by 2027. This presents a lucrative opportunity for IAC to capitalize on the increasing demand for online gambling services, and to expand its reach into new markets.
In a statement regarding the investment, IAC CEO Joey Levin expressed his excitement about the potential for growth and innovation in the online gambling industry. He stated, “We see this as a unique opportunity to leverage our expertise in digital commerce and technology to create a best-in-class online gaming experience for consumers. With MGM’s strong brand and presence in the casino industry, we believe that together we can redefine the way people engage with online gambling and entertainment.”
The partnership between IAC and MGM has already begun to yield positive results. BetMGM, MGM’s online gaming platform, has seen a significant increase in users and revenue since the announcement of the deal. With IAC’s resources and expertise, BetMGM is expected to continue its upward trajectory and solidify its position as a leader in the online gambling market.
As IAC continues to make waves in the ecommerce and technology industries, its foray into online gambling with MGM marks a pivotal moment in the company’s history. With a 20% stake in MGM’s casino business, IAC is poised to revolutionize the way people engage with online gambling and entertainment, and to capitalize on the growing demand for digital gaming services. This strategic investment solidifies IAC’s position as a visionary leader in the digital commerce space, and sets the stage for an exciting new chapter in the company’s growth and success.
