MGM Entertainment: A Resilient Physical Moat in the Age of Disintermediation

about 1 month ago

SPEAKER_02

"By the way, this is why one of the things that interests me, we bought 24% of MGM. And why does that appeal to me? Because you can’t disintermediate it. Because you give me any AI equation, and I will tell you, irrelevant to this. No one’s going to get between going to an MGM resort, particularly Las Vegas, in which we have a huge share of Las Vegas. We have 11 properties in Las Vegas. No tech is getting between that and a human. And it's like the Flintstones. I'm going back to the dark ages. But that, to me, because everything else in the world that I see is able to be disintermediated by this, that, and the other thing. That isn't."

Barry Diller highlights his company6#39;s 24% stake in MGM as a strategic bet. He explains that unlike many tech-driven sectors where digital platforms can disintermediate traditional services, MGM benefits from its physical presence and unique entertainment experiences, particularly in Las Vegas. This commentary underscores MGM6#39;s durable moat in a world increasingly susceptible to digital disruption.

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