Barry Diller's People Inc. Proposes $18 Billion Buyout of MGM Resorts

What happened

People Inc., the media conglomerate led by billionaire Barry Diller and formerly known as IAC, submitted a non-binding takeover proposal for MGM Resorts International. The offer values MGM at roughly $18 billion including debt, with shareholders receiving $48.30 per share in cash-a 10.6% premium to the most recent closing price and a 24.1% premium to the 30-day volume-weighted average price. People Inc. currently owns 26.1% of MGM's common stock, making it the largest shareholder. Diller and former IAC CEO Joey Levin both serve on MGM's board of directors, though Diller recused himself from board actions related to the deal. MGM confirmed receipt of the proposal and stated its board would carefully review it in consultation with advisors to determine the best course of action for all shareholders. Under the proposed structure, People Inc. would own just over 50.1% of the equity, with other investors holding minority stakes, and MGM would become a private company. The bid came less than a week after billionaire Tilman Fertitta agreed to acquire Caesars Entertainment for $17.6 billion.

Why it matters

This proposal represents a potential strategic shift for MGM Resorts, the largest casino operator on the Las Vegas Strip and Nevada's largest employer. Diller argues that MGM's assets and digital growth opportunities are materially undervalued in public markets and cannot realize their full potential under current public market scrutiny. The deal structure would give long-term investors greater control while reducing short-term market pressures. For People Inc. shareholders, successfully acquiring MGM would fundamentally transform the company-MGM's $11.2 billion market cap before the announcement was more than triple that of People Inc. Diller positions MGM as a hedge against AI disruption in his publishing business, describing it as a business with real-world assets that artificial intelligence "cannot easily replicate or disintermediate." The transaction would also bring one of People Inc.'s core assets fully under its umbrella. MGM operates nine casino resorts on the Strip, four non-gaming hotels in Las Vegas, six regional US resorts, and gaming operations in East Asia, including a 56% stake in MGM China Holdings. The company is developing an $10 billion integrated resort in Osaka, Japan, targeting a 2030 opening.

Bigger picture

The proposal signals a wave of consolidation sweeping through the US casino industry, with two of Las Vegas's three largest operators now subject to major takeover bids within days of each other. These moves come at a complex time for the gambling sector: Las Vegas tourism has softened after a post-pandemic boom, with consumers balking at higher table game minimums and increased prices for amenities. MGM's recent revenue growth has been driven more by China and regional operations outside Las Vegas than by its flagship Strip properties. The legacy casino industry also faces mounting pressure from digital competitors including sports betting platforms DraftKings and FanDuel, and prediction markets Kalshi and Polymarket. However, MGM's digital business BetMGM has turned a corner, moving from losses of $440 million two years ago to profitability. Some analysts view these buyout attempts as a sign that longer-duration investors see attractive intrinsic cash flow generation in US gaming firms that public markets are overlooking. The transactions could reshape the competitive landscape if completed, potentially leaving Wynn Resorts as the dominant independent publicly traded Las Vegas operator.

What to watch

MGM's board response to the proposal will be critical-analysts at J.P. Morgan suggest the $48.30 offer may be just a starting point, noting it likely gives minimal credit for longer-duration value drivers such as the Osaka project or digital business growth. A final deal closer to $55 per share may be more appropriate. Watch for whether MGM entertains competing bids or negotiates for a higher price. Investors should also monitor how People Inc. plans to finance the transaction, including which equity partners and lenders come aboard, as Diller mentioned "preliminary conversations" with potential investors. The outcome of Fertitta's Caesars deal will provide context for regulatory and market reception. Key upcoming signals include MGM's formal response timeline, any changes to the offer terms, and whether the deal structure or transparency concerns around operating as a private company influence shareholder sentiment. Finally, observe how MGM's management team, which Diller praised as "superb," responds to the potential change in ownership structure.