MGM Board Of Directors Joins InterActiveCorp With CEOs

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Article by : Helen Sep 2, 2020

It seems that MGM is seeking to strengthen its position in the market and, therefore, is attracting additional labor resources from the outside. The company expanded its board of directors by inviting some executives from InterActiveCorp. The most notable figures who have joined MGM.N are IAC chairman Barry Diller and CEO Joey Levin. The total number of board members will now include 14 permanent representatives.

Market experts say the appointments result from InterActiveCorp’s prior commitment to invest and acquire at least 12% of MGM Resorts International. The preliminary amount of the deal was about USD 1 billion. According to InterActiveCorp senior management, investing in an internet sports betting and gambling service is among the highest promising areas. At the same time, MGM.N is a top-advanced company without exaggeration. It will actively promote this service through its BetMGM, along with GVC Holdings. This factor was the most crucial reason why the IAC made such a future-oriented and strategic decision.

The large investment and the unique experience that IAC has, will play a pivotal role in MGM’s approach to expand its market share.

Paul Salem, Outgoing Chairman and CEO of MGM Resorts International

As soon as IAC.O invested about $ 1 billion and bought 12% of MGM.N’s shares, the operator’s shares immediately skyrocketed by 14%. The market appears to have reacted very positively to the company’s potential expansion in the sports betting segment.

The flow of investments and additional opportunities played into the hands of an experienced operator. Meanwhile, most companies are struggling with Covid-19. MGM previously reported that it was facing a record drop in revenue of more than 90%. Based on its Q2 2020 report, the brand has drastically cut dividends to cover operating costs and stay afloat until the situation improves.

In general, the company’s shares in 2020 sank by more than 35%. However, the percentage of the sports betting business is only a tiny fraction of the total investment portfolio of MGM.N. The “once in a decade” deal will be one of the brand’s most productive moves. This will allow the operator to expand their horizons and get an incredibly high potential for online promotion.

According to MGM CEO Bill Hornbuckle, the introduction of new directors will help the company gain a new vision for the next steps in developing the online segment. This will strengthen brand loyalty among online customers. Strengthening the board of directors with truly talented and versatile professionals will help use their skills and experience to develop the gambling operator further. Diller added that he was looking for the most optimal company to enter the online games market with a total turnover of more than $450 billion. The strategic merger appears to be an inevitable evolutionary step for the IAC.O.

As a reminder, Diller was the CEO of IAC.O from 1995 to 2010. Moreover, he also managed to gain unique experience working as the head of several companies engaged in media and online activities. The current CEO of IAC.O also served as chairman and CEO of the media giant Fox from 1984 to 1992. Before his appointment at Fox, he also served as chairman of the Paramount Pictures Corporation’s drawing director.

It looks like MGM.N. managed to get highly qualified specialists. Now the board of directors can work out a joint strategy for developing the brand on the Internet. This way, the company strives to hedge losses witnessed as a result of coronavirus virus restriction measures. It seems like this profit-maximizing strategy could work out.

Helen

Chief Editor

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