MGM Resorts International announced it will team up with media technology company IAC to purchase 4.5 million shares of MGM Resorts common stock from Corvex Management for $45 per share. The purchase price for each company will be $202.5 million.
After the transaction is closed, funds associated with Corvex, a New York-based hedge fund, will continue to own approximately 6.67 million shares or 1.5 percent of the company’s outstanding common stock.
“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,” said MGM Resorts International Chief Financial Officer and Treasurer Jonathan Halkyard in a statement. “With this purchase, we have now bought back approximately 11.5 percent of our outstanding shares, showing our continued confidence in MGM stock.”
“I’m pleased by the transformative transactions the company has undertaken since I joined the board in 2019,” said Corvex Managing Partner and Chief Investment Officer Keith Meister in a statement. “I look forward to continuing to serve as a board member.”
MGM Resorts Chairman of the Board Paul J. Salem added that Meister shares MGM’s strategic vision of being the world’s premier gaming company.
“We look forward to having (Meister) continue to serve as a valuable member of our board,” said Salem.
IAC, a media and technology company controlled by billionaire Barry Diller, purchased 59 million shares of MGM Resorts International stock in August 2020, and has a 12 percent ownership stake in MGM.
Following the transaction, IAC will own approximately 63.5 million shares, or 14.4%, of the company’s outstanding common stock.
“IAC is grateful to be an MGM Resorts shareholder and happy for this opportunity to increase our ownership,” said IAC CEO Joey Levin.
