Published on: April 28, 2026, 03:29h.
Updated on: April 28, 2026, 03:29h.
- IAC restructuring to enhance focus on MGM holdings
- Diller designates MGM as a pivotal asset for his company
- He emphasizes MGM stock is currently undervalued
Barry Diller is undertaking a restructuring of IAC/InterActiveCorp (NASDAQ: IAC), with forthcoming adjustments to place a stronger focus on the company’s 26% equity stake in MGM Resorts International (NYSE: MGM).
In a letter dispatched to shareholders of the media firm on Tuesday, Diller disclosed that IAC will be renamed – anticipated to be in August – to People Inc., focusing its mission on the publishing sector and its stake in the prominent gaming company.
“The essence of People Incorporated will encompass the assets of a primarily digital media enterprise alongside the solid assets of MGM Resorts—essentially, a perfect counterbalance in an era of rapid change,” Diller noted in the correspondence.
The media mogul confirmed that he would maintain his current positions as chairman and senior executive while overseeing the MGM stake.
Diller’s Confidence in MGM
IAC initially acquired a 12% stake in MGM, worth approximately $1 billion, in August 2020. Fueled by the casino giant’s initiatives to repurchase its own shares and a modest increase in ownership, Diller’s firm now holds 26% of MGM’s outstanding shares, making the soon-to-be People Inc. the largest shareholder in the casino operator.
In prior statements, Diller mentioned that IAC would consider expanding its investment in MGM. Over the past six years since it entered MGM, the media entity has largely acted as a passive stakeholder, although there have been discussions about potential financial support for significant acquisitions that MGM could pursue, alongside indications that Diller has sometimes been unsatisfied with MGM’s stock performance.
In his letter to shareholders, Diller commended MGM CEO Bill Hornbuckle and the “exceptional management team” steering the casino operator, while also asserting that the stock is seriously undervalued.
“MGM’s dominance in Macau is the envy of competitors, and its massive resort under construction in Japan presents a tremendous future opportunity. Its digital operations are showing robust profitability, yet the stock is still highly undervalued,” Diller expressed.
Strategic Timing for Diller’s Comments on MGM
Timed just weeks after announcing an agreement where People Inc. will vote its shares in line with other MGM investors, Diller’s note to shareholders introduces interesting dynamics.
This arrangement appears to restrict, under certain conditions, the influence Diller’s firm has within the gaming company. However, this may not pose a concern for the media mogul since he currently perceives his stake as a long-term commitment and has not taken a decidedly activist role in MGM.
Diller, alongside former IAC CEO Joey Levin, holds positions on MGM’s board of directors, but it remains uncertain how the intensified focus on the gaming company will manifest in the future.