MGM Is Undervalued, IAC/InterActive's Levin Says

The transcript discusses MGM's potential for digital growth despite being an established company with physical assets. The conversation covers investment strategies, the impact of COVID-19, and the belief in a return to normalcy post-pandemic. The decision to invest in MGM is explored, highlighting the digital transformation opportunity. Challenges and confidence in the investment are addressed, emphasizing the importance of execution and shareholder trust.

What is the main reason for seeing growth potential in established companies like MGM?

• They are new companies.

• They have a strong digital presence.

• They are in a declining industry.

• They have untapped digital opportunities.

Why did the company choose a minority stake in MGM?

• To avoid direct involvement in MGM's online business.

• To gain full control over MGM.

• To avoid any financial risk.

• To focus solely on physical assets.

What is the expected outcome for MGM post-COVID-19 according to the speaker?

• A permanent decline in business.

• A return to normalcy and growth.

• A shift to a fully digital model.

• A focus on reducing physical assets.

How does the speaker view the role of physical presence in experiences post-pandemic?

• It will remain important for fulfilling experiences.

• It will only matter in certain industries.

• It will be completely replaced by digital experiences.

• It will be less important than before.

What was a key factor in deciding to invest in MGM?

• The company's desire to enter the coal mining industry.

• MGM's strong financial performance during the pandemic.

• The potential for digital transformation in the gaming industry.

• MGM's focus on reducing physical assets.

What is the speaker's level of confidence in the digital transformation of the gaming industry?

• Very low confidence.

• No interest in digital transformation.

• Uncertain and skeptical.

• High confidence in its inevitability.

What is the main concern regarding the investment in MGM?

• The company's focus on coal mining.

• The absence of a digital strategy.

• The lack of physical assets.

• The volatility of the stock price.