June 1 - Media investor Barry Diller’s company, People Inc., is preparing a cash offer to purchase the portion of MGM Resorts it does not yet own, a move that would value the casino operator at in excess of $18 billion. According to the report, the proposed bid is for $48.30 per share in cash and would apply to the roughly 73.9% stake People does not currently hold.
Premarket trading reacted strongly to the news: MGM shares climbed by more than 10%, while People - which rebranded from IAC in April - rose nearly 3% before the market opened. The companies have not provided immediate comment in response to requests for comment.
Background and stakebuilding
Diller’s interest in the casino operator dates back to the COVID-19 period, when he accumulated shares while the company faced closures and steep travel restrictions. In a shareholder letter dated April 28, Diller indicated that People would intensify its focus on its MGM stake and described the stock as "wildly undervalued." The reported bid follows that pledge to concentrate on the investment.
Operations and recent performance
MGM controls several prominent properties that make up about 40% of the Las Vegas Strip. Despite that footprint, the company has contended with softer visitor volumes in Las Vegas. In recent quarters, MGM’s growth has been more dependent on its businesses outside Las Vegas, including operations in China such as Macau, as well as its digital gaming activities.
Sector context
Should People proceed with a formal acquisition attempt, it would represent a significant takeover effort within the casino and hospitality sector. The reported move arrives shortly after another large transaction in the industry: last week, the firm controlled by hospitality billionaire Tilman Fertitta announced acquisition terms to take Caesars Entertainment private in a deal valued at $17.6 billion.
Details about how People would structure the transaction beyond the per-share cash figure and the targeted percentage were not provided in the report. The market reaction to the reported offer suggests investors are treating the news as potentially value-accretive for holders of MGM stock.
Further developments, including any formal filing or definitive agreement, were not disclosed in the report.