MGM Resorts Forms Voting Agreement with Media Mogul Barry Diller
MGM Resorts and Barry Diller Enter Voting Agreement
MGM Resorts International, a leader in the global casino industry, has reached a voting agreement with its largest shareholder, billionaire media executive Barry Diller and his company, IAC Inc. This deal grants Diller greater influence over the company’s future decisions.
Details of the Voting Agreement
According to the agreement, Diller and IAC will vote any shares they own beyond 25.73% of MGM’s total voting power in alignment with the majority of other shareholders during annual or special meetings. This means they have full voting control over up to 25.73% of their shares but must proportionally align any additional shares with the broader shareholder vote, thereby limiting their overall sway.
In return, Diller and IAC secure the right to have two members on MGM’s board of directors at all times. However, if Diller steps down from his leadership at IAC or loses control of at least one-third of the company, these voting limitations will be lifted.
MGM’s Expansion and Impact of the Deal
This agreement coincides with MGM’s efforts to broaden its global footprint, notably through a major project in Osaka, Japan. Construction began last year on a new casino expected to open around 2030. Industry insiders suggest this venue could rival some of East Asia’s top casinos, including the Marina Bay Sands resort in Singapore operated by Las Vegas Sands.
Barry Diller’s Strategic Investment Success
Barry Diller, co-founder of Fox Broadcasting Company, initially purchased a 12% stake in MGM for $1 billion in 2020, viewing it as a long-term investment. Since then, he and IAC CEO Joey Levin have both served on MGM’s board and finance committee. Recent reports indicate they have increased their stake by about one million shares.
Diller’s involvement has coincided with a generally upward trend in MGM’s stock price, which has gained approximately 17% over the past six months despite some earlier fluctuations.
Strong Financial Performance at MGM Resorts
MGM’s full-year 2025 report, published in February, highlighted a 6% increase in fourth-quarter revenue to $4.6 billion. The company’s net income rose significantly to $294 million for the quarter, up from $157 million in the same period the previous year. MGM’s diverse portfolio includes its flagship casino in Las Vegas, operations in Macau, and a 50% stake in the sports betting platform BetMGM.
Additionally, MGM’s Empire City Casino in New York recently marked Women’s History Month by emphasizing strides toward cultural equality within its operations.
