Key Highlights
- People Inc., led by Barry Diller, is reportedly planning a cash buyout of MGM Resorts at $48.30 per share
- The proposed transaction would value MGM at approximately $18 billion and cover the 73.9% stake People Inc. doesn’t currently control
- Shares of MGM surged up to 15%, reaching $50 during premarket hours on Monday
- Diller’s People Inc. currently owns 26.1% of MGM and maintains two board positions, one occupied by Diller himself
- The proposed offer price reflects a 10.6% markup from MGM’s previous Friday close
Barry Diller’s People Inc. is reportedly moving forward with an all-cash takeover proposal for MGM Resorts International, a transaction that would value the gaming giant at over $18 billion, as first reported by The New York Times’ DealBook on Monday.
MGM Resorts International, MGM
Shares of MGM climbed as high as 15%, touching $50 during premarket trading following the announcement.
The reported offer stands at $48.30 for each share of the 73.9% portion of MGM that remains outside People Inc.’s current ownership. This valuation marks a 10.6% increase above where MGM shares closed the prior Friday.
People Inc., which underwent a rebrand from its previous identity as IAC, currently controls a 26.1% ownership position in MGM, establishing it as the casino operator’s most significant shareholder.
Diller personally occupies one of the two board positions that People Inc. holds at MGM. Joey Levin, who previously served as CEO of IAC, fills the second seat.
Should the transaction proceed, it would represent a complete acquisition — transforming People Inc.’s substantial existing position into complete control of a major player in the casino and gaming industry.
Structure of the Proposed Transaction
The reported bid is configured as a pure cash transaction, with no equity or stock exchange component mentioned. People Inc. would be required to finance the purchase of approximately three-quarters of a corporation that operates several iconic Las Vegas Strip destinations.
MGM’s real estate holdings encompass the legendary Bellagio, the flagship MGM Grand, and the luxury Aria resort. Beyond its physical casino properties, the company has aggressively expanded into sports wagering and digital gaming platforms in recent years.
No specific timetable has been disclosed regarding when a formal proposal might be presented to MGM’s board of directors.
Current Status of Negotiations
As of press time, neither MGM Resorts nor People Inc. had issued statements or responded to media inquiries from Reuters or Barron’s regarding the reported acquisition plans.
Given that both Diller and Levin serve on MGM’s board, any official takeover proposal would likely necessitate review by a special committee composed of independent directors to assess the offer — a typical safeguard when parties on both sides of a transaction have insider relationships.
This procedural requirement could extend the timeline before any official determination becomes public knowledge.
People Inc. completed its rebranding from IAC earlier this year. The investment firm has maintained its significant MGM position for an extended period, with the two companies sharing interconnected leadership structures for considerable time.
The reported $48.30 per share bid is the figure currently circulating. The fact that MGM shares traded at $50 in premarket activity indicates market participants may be anticipating either a higher final price or the possibility of a rival bidder entering the picture.
As of Monday morning hours, MGM shares were registering gains exceeding 10% ahead of the regular trading session opening.
