Published on: November 5, 2024, 02:13h.
Last updated on: November 5, 2024, 02:13h.
The head of IAC/InterActiveCorp (NASDAQ: IAC) — the top shareholder of MGM Resorts International (NYSE: MGM) — expressed discontent with The Washington Post’s choice not to endorse a presidential candidate this year.
IAC Chairman Barry Diller — a key supporter of the Democrat party and candidates — acknowledged being annoyed by the newspaper’s move to break its 36-year tradition of endorsing presidential candidates. He suggested that if the publication intended to take this path, it should have been done months earlier, not close to Election Day.
They made a blunder — it should’ve happened months before, and it didn’t, and that’s the issue with it,” Diller said in a Monday CNBC interview.
The decision by the newspaper to refrain from endorsing a presidential candidate was made public on Oct. 25 – less than two weeks before Election Day. Diller, who has a relationship with Post owner Jeff Bezos, commented that it was a “principled” choice to do away with presidential endorsements.
WaPo Subscribers Turn Away After Endorsement Controversy
The Post, which has faced criticism for leaning too far left, had intended to endorse Vice President Kamala Harris (D) until Amazon founder Bezos halted the process.
“Presidential endorsements do nothing to sway an election,” Bezos stated. “No undecided voters in Pennsylvania will say, ‘I’m going with Newspaper A’s endorsement.’ None. What these endorsements actually do is create a perception of bias.”
In the aftermath, reporters at the publication openly expressed displeasure and approximately 250,000 customers canceled subscriptions. While the decision not to endorse Harris may have contributed to some subscriber loss, The Post has been dealing with dwindling subscriptions for some time.
In December 2022, The Wall Street Journal reported that The Post lost 500,000 subscribers during President Biden’s first two years in office. In that timeframe, The Post experienced financial losses and joined other media outlets – predominantly those with left-leaning leanings – in staff layoffs.
Inside IAC/MGM Relationship
IAC made its initial investment in MGM in August 2020, purchasing $1 billion worth of the casino giant’s shares at the time. Diller’s conglomerate, with its own media interests, added another $1 billion over subsequent months.
In February 2022, Diller’s company teamed up with MGM to buy $405 million worth of the casino operator’s shares from Keith Meister’s Corvex Management. Since acquiring a stake in MGM in 2020, IAC has not reduced it.
With IAC maintaining its MGM position and the gaming company actively reducing its outstanding shares through buybacks, IAC now owns just over 20% of the Aria operator as of May. This solidifies IAC’s position as the largest investor in MGM. So far, Diller’s firm has been a passive investor in the gaming operator, not pushing for asset sales or leadership changes publicly.