Barry Diller has made an all-cash offer for MGM Resorts International, giving the Las Vegas casino group a valuation of more than $18 billion. People Inc., formerly IAC, already owns 26.1% of MGM and now wants to buy the shares it does not own. Reuters reported the offer at $48.30 per share, a 10.6% premium to the prior closing price.
Good to Know
MGM Resorts may soon leave public markets if Barry Diller gets enough support for his latest offer. The billionaire media executive, through People Inc., proposed a cash deal at $48.30 per share for the remaining MGM shares.
The deal would give People Inc. control of a casino group with land-based resorts, Las Vegas assets, Macau exposure and digital betting links through BetMGM. MGM owns major Strip properties such as Bellagio and Aria Resort & Casino, while BetMGM remains one of the better-known names in US online sports betting and iGaming.
Diller framed MGM as a rare asset in a market where artificial intelligence can disrupt many digital businesses. He said:
“We began investing in MGM nearly six years ago because we believed it represented a rare kind of business: one with real-world assets that AI cannot easily replicate or disintermediate and exceptional digital growth opportunities.”
The offer comes during a busier period for casino M&A. Tilman Fertitta is set to buy Caesars Entertainment, after topping a rival offer from Carl Icahn.
People Inc. has changed shape several times, and MGM gives Diller a very different type of growth story. Resorts, casinos and live entertainment rely on physical venues. AI cannot copy a Bellagio stay, a casino floor, or a Las Vegas event calendar.
Diller also pointed to market value. He said:
“We continue to believe the market materially undervalues the power and durability of MGM’s assets.”
He added:
“We believe MGM’s management team is superb, and that there is a compelling opportunity to support MGM’s next phase of growth and help unlock its full value.”
MGM confirmed receipt of the proposal and started a review with advisers, according to Reuters. MGM stock traded above the offer after the news, which can mean investors expect a higher bid, another bidder, or deal revisions before any final agreement.
Diller sits on the MGM Resorts board, but he will recuse himself from board actions tied to the offer. That step helps separate the bidder role from the director role.
Barry Diller company People Inc. made the offer. People Inc. already owns 26.1% of MGM Resorts.
The offer values MGM Resorts at more than $18 billion, with a cash price of $48.30 per share.
Yes. People Inc. wants to take MGM Resorts private by buying the remaining shares it does not already own.
MGM Resorts owns several major Las Vegas properties, including Bellagio and Aria Resort & Casino.
Diller pointed to MGM physical casino and resort assets, plus digital growth options tied to online betting and iGaming.