Barry Diller Approved as Director for MGM Resorts International

by Frank McDougall
in Action, News
on 16 May 2024

The Nevada Gaming Commission has given its approval for media mogul Barry Diller to join the board of directors for MGM Resorts International. This decision comes after a previous recommendation for approval in 2022, which saw Diller granted a limited two-year license. However, the process was temporarily halted due to an investigation into insider trading allegations involving Diller, his stepson-in-law Alexander von Furstenberg, and film executive David Geffen conducted by the Securities and Exchange Commission (SEC).

During a recent virtual meeting, Diller reassured the commission that the stock purchases in Activision Blizzard, which was later acquired by Microsoft Corp., were coincidental and that he and his associates believed the company to be undervalued. Diller’s attorneys also stated that there has been no further communication from the SEC or the U.S. Justice Department regarding the investigation into the stock trades.

The licensing approval from the commission was not unanimous, with Commissioner Rosa Solis-Rainey casting the lone vote against it. She expressed concerns about the future possibility of an investigation as the SEC’s email to Diller’s lawyer stated that it should not be taken as an indication of exoneration or the absence of potential action resulting from the ongoing investigation.

Barry Diller is a highly influential figure in the media and internet industry. He currently serves as the chairman and senior executive of IAC, a global holding company with brands spread across 100 countries. He is also the chairman and senior executive of Expedia Group. Diller’s previous roles include chairman and CEO of notable companies such as Fox and Paramount Pictures Corp. Additionally, he holds a position on the board of The Coca-Cola Company.

With the Nevada Gaming Commission’s approval, Barry Diller can now contribute his valuable expertise to the board of directors for MGM Resorts International.

Additional relevant facts about Barry Diller and MGM Resorts International:

1. Barry Diller is considered a pioneer in the media and internet industry. He played a significant role in the creation of Fox Broadcasting Company and the launch of the Fox network in the 1980s.

2. Diller has been instrumental in the success of various television shows, including “The Simpsons” and “Married… with Children.”

3. MGM Resorts International is a renowned hospitality and entertainment company, known for its luxury resorts and casinos around the world.

4. The company operates iconic properties such as the Bellagio, MGM Grand, and The Mirage in Las Vegas.

5. MGM Resorts International has faced challenges in recent years due to the impact of the COVID-19 pandemic on the hospitality industry.

Key questions and answers:

1. What expertise and experience does Barry Diller bring to the board of directors for MGM Resorts International?
Barry Diller’s extensive background in the media and internet industry can provide valuable insights into marketing, branding, and the overall customer experience. His previous leadership roles in notable companies demonstrate his ability to navigate complex business environments.

2. What were the insider trading allegations involving Barry Diller, Alexander von Furstenberg, and David Geffen?
The Securities and Exchange Commission (SEC) investigated allegations that Diller, von Furstenberg, and Geffen engaged in insider trading related to the stock purchases of Activision Blizzard. Diller has stated that the purchases were coincidental and that they believed the company to be undervalued.

Key challenges or controversies:

1. The ongoing investigation into the insider trading allegations involving Diller, von Furstenberg, and Geffen could potentially impact MGM Resorts International’s reputation and investor confidence. The outcome of the investigation remains uncertain.

2. The COVID-19 pandemic has significantly affected the hospitality and entertainment industry, including MGM Resorts International. The company has faced challenges in terms of revenue decline, operational restrictions, and customer confidence during this period.

Advantages of Barry Diller’s appointment:

1. Barry Diller’s wealth of experience and industry knowledge can contribute to strategic decision-making and business growth for MGM Resorts International.

2. Diller’s expertise in media and branding can help enhance the company’s marketing efforts and expand its customer base.

Disadvantages of Barry Diller’s appointment:

1. The ongoing investigation into the insider trading allegations could bring unwanted scrutiny to the board of directors and potentially affect the company’s image.

2. There could be potential conflicts of interest if Diller’s other roles and responsibilities, such as chairman and senior executive of IAC and Expedia Group, create competing priorities.