Barry Diller’s IAC and Insiders Are Betting Yes! 🎰💰

NYSE: MGM — $35.89 ▲0.57 (+1.61%)
As of Dec-09-2025, 4:10 PM ET

FUNstock Index: 7.0 / 10 🎯

🦁 MGM Resorts International doesn’t need neon lights to announce itself — it is the neon light. Las Vegas, Macau, BetMGM, mega-resorts, global expansion… if people gamble, vacation, binge-spend, or attend conventions, MGM is probably cashing in somewhere backstage.

And here’s what makes things interesting: big insiders aren’t leaving the casino — they’re doubling down.

Before we pull the lever, let’s set the scene.

🎟️ What Is MGM, Really?

MGM Resorts International operates high-end casino resorts across:

• Las Vegas Strip

• Regional U.S. Markets

• MGM China (Macau)

• MGM Digital (BetMGM iGaming & Sportsbook)

Beyond blackjack and buffets, MGM now looks more like a global entertainment and digital betting platform than a traditional “casino stock.”

And insiders seem to agree.

🎯 Trigger #1: Barry Diller’s IAC Goes Big (Again)

The headline grabber:

IAC Inc. (Barry Diller’s vehicle) just bought $40 million+ worth of MGM stock at ~$36.

That’s not trader behavior. That’s ownership behavior.

📌 Why this matters

• IAC is MGM’s largest shareholder, owning ~23–24%

• This position started during COVID lows and kept growing

• MGM share buybacks increase IAC’s ownership quietly

• Barry Diller has called MGM a “forever asset”

If that phrase sounds familiar, it should — it echoes IAC’s legendary early conviction in Expedia.

👀 Bonus confidence: MGM’s CEO, CFO, and directors all bought shares in the low-$30s range a few months back. Same table. Same chips. Same bet.

🏦 Trigger #2: Institutions Are Fully Seated

This isn’t a retail flyer.

• ~69% institutional ownership

• ~92% of the float held

• Big funds everywhere: Vanguard, BlackRock, AQR, State Street, Morgan Stanley

That tells us two things:

1. MGM is taken seriously by long-term capital

2. There isn’t a ton of “dead float” — moves can be sharper (up or down)

For MGM Resorts International (MGM)’s Institutional Ownership breakdown, 🔍 see here.

📈 Trigger #3: Wall Street Is Mostly Bullish (With Casino-Sized Opinions)

Analyst sentiment isn’t unanimous — but it’s tilted positive.

• Average 12-month price target: ~$49

• Bull cases go as high as $60

• Few outright “sell” calls

Translation: analysts disagree on timing, not direction.

🧨 Trigger #4: Short Interest Adds Spice

Short interest sits around 11%.

That’s not catastrophic — but it’s enough to:

• Create volatility

• Add fuel if fundamentals surprise

• Keep pressure on skeptics if BetMGM & China keep delivering

🎰 Every casino needs tension.

📊 Trigger #5: Earnings — The Good, the Bad, and the Non-Cash Ugly

Q3 2025 looked messy at first glance. Losses? Yes. But…

💡 Context matters:

• Losses were driven by non-cash write-downs (Empire City license withdrawal)

• Core businesses stayed profitable

• MGM China hit record results

• BetMGM grew revenue 23% YoY and is nearing cash-flow positivity

• BetMGM announced cash distributions to MGM starting Q4 2025

That last one matters more than flashy EPS.

 👉 Want the full picture? Dive into MGM Resorts International (MGM)’s financials here.

🌍 The Bigger Story: MGM Isn’t Just Vegas Anymore

MGM’s long-term playbook reads like a world tour:

• 🇨🇳 Macau / China: Strong rebound, rising market share

• 🎮 Digital (BetMGM): iGaming + sports betting = recurring revenue

• 🇯🇵 Osaka: Massive future resort development

• 🗽 New York + UAE: Optionality galore

This isn’t a dying casino company — it’s a scaled entertainment platform still mid-transformation.

💰 Valuation Check: Cheap, Expensive… or Misunderstood?

Some highlights:

• Price/Sales: ~0.6 (cheap)

• Forward P/E: ~15 (reasonable)

• EV/Revenue: ~2.2 (very reasonable)

• EV/EBITDA: ~22 (not cheap, but explainable for quality assets)

And here’s the fun stat:

📉 MGM still trades ~65% below its 2007 all-time high (~$100)

Even a partial reclaim would be meaningful.

✅ Bull Case: Why MGM Could Win Big

🎲 Rebound in Las Vegas & conventions
🎮 BetMGM maturing into a cash engine
🌏 International pipeline (China, Japan, UAE, NY)
📉 Buybacks amplify insider conviction
🦁 Iconic brand with pricing power

⚠️ Bear Case: Why This Isn’t a Sure Bet

🎢 Cyclical consumer spending
🏗️ Execution risk on mega projects
📉 Economic slowdowns hit travel & gaming
💰 Debt levels require discipline (Debt-to-Equity of 9 and Debt-to-EBITDA ratio of 7 indicate significant leverage, though operating cash flow adequately covers interest payment)

💡💡💡 Curious about another deep oil exploration play?
Check our takes on UnitedHealth Group or even Oscar Health.

🎯 Final Thoughts

MGM is not a sleepy value play.
It’s a transition story — from bricks-and-mortar casinos to a diversified, global entertainment & gaming platform.

Barry Diller is in.
Management is in.
Institutions are in.

The timeline? Unclear.
The direction? Clearly interesting.

✅ Quick Take / TL;DR

• 🎰 Big insiders are buying at current prices

• 🌍 Global expansion + digital growth fuel upside

• 📉 Stock still far below historic highs

• 💸 Buybacks reward patient shareholders

• ⚠️ Cyclical and execution risks remain

MGM might mean “My Great Money-Maker.”
Or, on a bad night, “Major Global Meltdown.”

Know which table you’re sitting at — and play accordingly. 😉

❓ FAQ

Q: Is MGM a pure casino stock?
No. It’s increasingly a digital gaming + global entertainment company.

Q: Why does IAC matter so much?
Because Barry Diller plays long games — and he’s still buying.

Q: What’s the biggest upside driver?
BetMGM profitability + international expansion.

Q: Biggest risk?
Economic downturns and execution risk on mega-projects.

Q: Is this for short-term traders?
More of a patient, multi-year story than a quick flip.

🎲 Bottom line:
MGM isn’t betting against the house — it is the house.
Whether that house pays out big… depends on patience and luck.

Invest at your own risk. Enjoy the show. 🍸🎰

This article blends research and entertainment — not prescriptions.
Nothing here is financial advice.

Always DYOR, resist FOMO, and never invest money you can’t afford to lose.

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