LAS VEGAS, Feb. 14, 2022 /PRNewswire/ -- MGM Resorts
International (the "Company" or "MGM Resorts") (NYSE: MGM) and IAC
(NASDAQ: IAC) today announced that they will each purchase 4.5
million shares of MGM Resorts' common stock from Corvex Management
LP ("Corvex") at $45 per share, for a
total aggregate amount of $405
million, or $202.5 million
each.
"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 Jonathan
Halkyard, Chief Financial Officer and Treasurer of MGM
Resorts International. "With this purchase, we have now bought back
approximately 11.5 percent of our outstanding shares, showing our
continued confidence in MGM stock."
Following the transaction, funds associated with Corvex will
continue to own approximately 6.67 million shares, or 1.5% of the
Company's outstanding common stock.
"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," said Paul J. Salem, Chairman of the Board, MGM
Resorts.
"IAC is grateful to be a MGM Resorts shareholder, and happy for
this opportunity to increase our ownership," said Joey Levin, CEO of IAC. Following the
transaction, IAC will own approximately 63.5 million shares, or
14.4% of the Company's outstanding common stock.
The purchases are expected to settle by February 16, 2022. For MGM Resorts, the purchase
will be made pursuant to the terms of the Company's Feb. 2020 $3
billion stock repurchase program, of which $636.7 million will remain following the
transaction. As of Feb. 12, 2022,
there were approximately 444.8 million shares of the Company's
common stock outstanding.
"I'm pleased by the transformative transactions the Company has
undertaken since I joined the Board in 2019," said Keith Meister, Managing Partner and Chief
Investment Officer, Corvex Management LP. "I look forward to
continuing to serve as a Board member."
About MGM Resorts International
MGM Resorts International (NYSE: MGM) is an S&P 500® global
entertainment company with national and international locations
featuring best-in-class hotels and casinos, state-of-the-art
meetings and conference spaces, incredible live and theatrical
entertainment experiences, and an extensive array of restaurant,
nightlife and retail offerings. MGM Resorts creates immersive,
iconic experiences through its suite of Las Vegas-inspired brands. The MGM Resorts
portfolio encompasses 31 unique hotel and gaming destinations
globally, including some of the most recognizable resort brands in
the industry. The Company's 50/50 venture, BetMGM, LLC, offers U.S.
sports betting and online gaming through market-leading brands,
including BetMGM and partypoker. The Company is currently pursuing
targeted expansion in Asia through
the integrated resort opportunity in Japan. Through its "Focused on What Matters:
Embracing Humanity and Protecting the Planet" philosophy, MGM
Resorts commits to creating a more sustainable future, while
striving to make a bigger difference in the lives of its employees,
guests, and in the communities where it operates. The global
employees of MGM Resorts are proud of their company for being
recognized as one of FORTUNE® Magazine's World's Most Admired
Companies®. For more information, please visit us at
www.mgmresorts.com. Please also connect with us @MGMResortsIntl on
Twitter as well as Facebook and Instagram.
About IAC
IAC (NASDAQ: IAC) builds companies. We are guided by curiosity,
a questioning of the status quo, and a desire to invent or acquire
new products and brands. From the single seed that started as IAC
over two decades ago have emerged 11 public companies and
generations of exceptional leaders. We will always evolve, but our
basic principles of financially-disciplined opportunism will never
change. IAC is today comprised of category-leading businesses
including Angi Inc. (NASDAQ: ANGI), Dotdash Meredith and Care.com,
among many others ranging from early stage to established
businesses. IAC is headquartered in New
York City with business locations worldwide.
Forward-Looking Statements
Statements in this release
that are not historical facts are forward-looking statements,
within the meaning of the Private Securities Litigation Reform Act
of 1995, as amended, and involve risks and/or uncertainties,
including those described in MGM Resorts' public filings with the
Securities and Exchange Commission. Forward-looking statements can
be identified by the use of forward-looking terminology such as
"believes," "expects," "could," "may," "will," "should," "seeks,"
"likely," "intends," "plans," "pro forma," "projects," "estimates"
or "anticipates" or the negative of these words and phrases or
similar words or phrases that are predictions of or indicate future
events or trends and that do not relate solely to historical
matters. MGM Resorts has based forward-looking statements on
management's current expectations and assumptions and not on
historical facts. Examples of these statements include, but are not
limited to, MGM Resorts' expectations regarding its capital
allocation strategy and future share repurchases. These
forward-looking statements involve a number of risks and
uncertainties. Among the important factors that could cause actual
results to differ materially from those indicated in such
forward-looking statements include risks related to MGM Resorts'
ability to roll out the loyalty program on the terms described
herein or all, the continued impact of the COVID-19 pandemic on MGM
Resorts' business, the effects of economic conditions and market
conditions in the markets in which MGM Resorts operates and
competition with other destination travel locations throughout
the United States and the world,
the design, timing and costs of expansion projects, risks relating
to international operations, permits, licenses, financings,
approvals and other contingencies in connection with growth in new
or existing jurisdictions and additional risks and uncertainties
described in MGM Resorts' Form 10-K, Form 10-Q and Form 8-K reports
(including all amendments to those reports). In providing
forward-looking statements, MGM Resorts is not undertaking any duty
or obligation to update these statements publicly as a result of
new information, future events or otherwise, except as required by
law. If MGM Resorts updates one or more forward-looking statements,
no inference should be drawn that it will make additional updates
with respect to those other forward-looking statements.
MGM RESORTS CONTACTS:
News Media
BRIAN AHERN
Executive Director of Corporate Media Relations
media@mgmresorts.com
Investment Community
SARAH ROGERS
Senior Vice President of Corporate
Finance
srogers@mgmresorts.com
IAC CONTACTS:
IAC Corporate Communications
VALERIE COMBS
(212) 314-7251
IAC Investor Relations
MARK SCHNEIDER
(212) 314-7400
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SOURCE MGM Resorts International