MGM Resorts International and IAC/InterActive Corp. have announced a plan to each purchase 4.5 million shares of MGM Resorts stock from Corvex Management LP for a total of $405.0 million, or $202.5 million each. The two companies are purchasing the stock for $45 per share. Corvex will continue to own 6.67 million shares, or 1.5% of MGM Resorts’ outstanding common stock. IAC will own approximately 63.5 million shares, or 14.4% of outstanding shares. “With this purchase, we have now bought back approximately 11.5% of our outstanding shares, showing our continued confidence in MGM stock,” said Jonathan Halkyard, chief financial officer of MGM Resorts International in a statement. The purchase is part of MGM Resorts’ $3 billion stock repurchase program, announced in Feb. 2020; there will be $636.7 million remaining after the Corvex purchase is complete. As of Feb. 12, there were 444.8 million shares of MGM Resorts shares outstanding. MGM Resorts stock has run up 26.5% over the past year while the S&P 500 index has gained 12.3%.
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