News
Breaking News | Barry Diller's People Inc. Offers $18B to Take MGM Private
2 min read
Suhaib
Diller's 26% stake becomes a full takeover bid at $48.30/share-10.6% premium but 30% above 90-day average. Deal accelerates casino consolidation one week after Fertitta's $17.6B Caesars bid. MGM holders face imminent cash-out or rejection decision.
Key Numbers
What happened
People Inc. (formerly IAC) submitted a nonbinding proposal to acquire the remaining 73.9% of MGM Resorts it does not own at $48.30 per share in cash, valuing the casino operator at $18 billion. The offer price sits 10.6% above MGM's Friday close and roughly 30% above its 90-day volume-weighted average price.
Barry Diller, who chairs People Inc. and sits on MGM's board, will recuse himself from any board vote on the deal. He began building his MGM position in 2020 during pandemic-driven casino shutdowns and called the stock "wildly undervalued" in an April 28 shareholder letter. People Inc. currently holds 26.1% of MGM.
MGM owns properties representing roughly 40% of the Las Vegas Strip and has faced pressure from weak visitor volumes in Las Vegas, leaning more on its Macau operations and BetMGM digital betting revenue. The proposal follows last week's $17.6 billion agreement by Tilman Fertitta to acquire Caesars Entertainment, signaling accelerating consolidation in the casino sector.
What to watch
Board response timeline: Proposal is nonbinding and could be delayed or rejected; watch for formal negotiation announcements or competing bids.
Financing disclosure: People Inc. must detail how it plans to fund the roughly $13.3 billion cash component for the remaining stake.
Regulatory review: Any approved deal requires gaming license approvals across multiple jurisdictions including Nevada, New Jersey, Massachusetts, and Macau.
Fertitta-Caesars close date: Completion of the $17.6B Caesars deal may set valuation benchmarks and affect MGM's standalone strategic options.
Also Worth Watching
Barry Diller chairs Expedia after acquiring Liberty Expedia in 2019 for $2.6B. If People Inc. commits $13B+ to take MGM private, watch whether Diller reduces focus on Expedia's travel platform or leverages MGM's hospitality data to cross-sell bookings. Expedia's lodging partnerships and loyalty programs could gain preferential MGM inventory access under common control. EXPE (Expedia Group, Inc. $225.79 (-0.8%) - )
Company Overview
MGM Resorts International owns and operates casino resorts across Las Vegas, regional U.S. markets, and Macau, controlling approximately 40% of the Las Vegas Strip including Bellagio, Aria, and MGM Grand. The company generates revenue from gaming, hospitality, entertainment, and its BetMGM digital sports betting platform.
