$1 Billion Deal Set to Bring Quick Profits
The largest company MGM Resorts International, which owns a large network of casinos, sold a package of 12% shares, which was acquired by a well-known corporation from the USA – IAC. The amount of the deal was one billion dollars. The corporation gave an explanation about the deal, which states that the concern is interested in obtaining additional profit, and the gambling magnate's online activities indicate that this is quite real. In addition, the corporation is interested in developing sports betting offered on the Internet.
Due to quarantine measures taken around the world, land-based casinos are suffering serious losses. This has led MGM Resorts to increase its market share in online bookmaking. The company's division is involved in this – BetMGM. The companies became partners Major League Soccer, PGA Tour and others. Mostly, we are talking about companies based in North America.
After the deal is concluded IAC Executive Director made a statement that his company is going to further develop the already successful betting direction from MGM Resorts. The plans include the creation of new interactive businesses, etc. The investor's headquarters are located in New York. The corporation manages several companies. Including: Vimeo, Dotdash, Ask.com, Investopedia, Angie's List, Care.com. The management of the concern said that it hopes to see a recovery in business levels in the near future. This will be largely facilitated by the activities of MGM, which is rapidly increasing its profit rate due to the development of online gambling and betting. As a result, both companies will become even more stable in the virtual games market.
An MGM representative said that in a number of countries, net revenue of land-based establishments for the second quarter of this year decreased by 91%. This result was possible due to the closure of most casinos in the spring. After the lifting of quarantine measures, land-based casinos have not seen a high level of traffic either, since all establishments use strict sanitary measures that do not suit all visitors.
As soon as the information about the completed transaction became public, the gambling company's shares rose sharply by 22%. At the same time, the buyer's shares increased in price only slightly - within 1.6%. This information is provided by Bloomberg.com.
