People Inc. makes $18B bid for MGM Resorts

Barry Diller’s People Incorporated has proposed acquiring control of MGM Resorts in a deal valuing the casino and resort company at $18 billion, according to The Hollywood Reporter.

People Inc., formerly known as IAC, is already MGM’s largest shareholder, with a stake of more than 26 per cent. 

The company is proposing to buy an additional 24.9 per cent of MGM for $48.30 per share.

If completed, the transaction would give People Inc. just over 50 per cent ownership of MGM, making it the company’s controlling shareholder. 

Minority investors would also participate in the deal.

In a letter to MGM’s board, Diller said the proposed transaction would be funded through cash on hand, along with debt and equity commitments. 

He also said People Inc. expects to retain MGM’s existing management team.

“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,” said Diller, chairman and senior executive of People Incorporated, in a statement.

“That conviction has only strengthened over time,” he said. 

“We continue to believe the market materially undervalues the power and durability of MGM’s assets. 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.”

If approved, the deal would deepen Diller’s position in the casino, gaming and experiential sectors.

MGM Resorts operates 31 resorts across seven U.S. states and China, including the MGM Grand and Bellagio in Las Vegas. 

The company is the world’s largest casino operator by revenue, ahead of Las Vegas Sands and Caesars Entertainment.

The gambling sector has faced disruption from online betting companies such as DraftKings and FanDuel, as well as prediction-market platforms including Kalshi and Polymarket. 

Diller’s proposal suggests a bet on the continued strength of in-person resort and casino experiences.

In his letter to MGM’s board, Diller said he would recuse himself from board deliberations related to the proposal or any alternative transaction.

“We wish to confirm to you that People Incorporated has no intention to sell our existing ownership stake in MGM, or to pursue or vote in favour of any merger or other similar extraordinary transaction that would result in a change in control to another party or dilute in any meaningful respect our economic and voting interest in MGM,” Diller wrote.

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