Barry Diller’s People Inc shelves $18bn bid to acquire MGM Resorts International
American billionaire businessman says the proposal wasn’t “coming together in the way we had hoped”, yet belief in the prospects for the casino and resort business is “undimmed”
People’s Inc – the largest digital and print publisher in the US – has abandoned plans to acquire all public shares in Las Vegas-based casino giant MGM Resorts International.
The U-turn comes almost four months after a $18bn cash offer at $48.30 per share was tabled for the remaining stock People Inc does not already own in MGM. The development triggered a 15% bump in MGM shares at the time.
However, 84-year-old billionaire chair and senior executive at People Inc Barry Diller said in a statement that “lots of ingredients” go into a proposal of this kind but “we didn’t feel the mix was coming together in the way we had hoped”.
MGM Resorts had formed a special committee of its board members to negotiate a deal with People Inc to “advance the interests of its shareholders”, the operator said in a statement on Wednesday.
The announcement sent MGM shares tumbling 8% in after-hours trading. The stock ended Monday 23 September down almost 3% to $37.85 in New York.
People Inc, which will continue to hold 66.8 million shares, representing around 27% of MGM, said its belief in the future of MGM was “undimmed” and that it had “total confidence in both the management and the company’s prospects”.
However, People Inc hasn’t ruled out pursuing a future deal. Diller added: “We at People Inc remain open to and interested in the possibility of a strategic transaction with MGM Resorts and look forward to considering a range of alternatives.”
Diller has had seat on the casino group’s board since the summer of 2020.
As well as being chair of People Inc, Diller is the chair of travel powerhouse Expedia, while he also founded Fox Broadcasting Company with Rupert Murdoch. Forbes estimated Diller’s net worth in 2026 to be $5.9bn.
When the original bid to take MGM private was proposed, People Inc said the transaction would likely be funded through a combination of existing cash on hand at People Inc and MGM, as well as additional debt and equity funding commitments.
People Inc was expected to own around 50.1% and have control of MGM, while other investors, including MGM shareholders, would have held minority stakes.
Besides iconic properties on the Las Vegas Strip like the Bellagio and Aria Resort & Casino, the group also owns casino resorts overseas, including in Macau: MGM Cotai and MGM Macau.
MGM owns 50% of BetMGM in North America, while MGM Digital operates BetMGM and other brands in international markets through subsidiary LeoVegas Group.
MGM Digital reported a 20% year-on-year jump in Q2 revenue to $196m, though EBITDAR amounted to a loss of $31m, compared with a negative $26m in the corresponding period last year.
The unit’s chief commercial officer, Gary Fritz, said in July that MGM Digital was positioned for “substantial levels of profitability in 2027”.
Paul Salem, MGM Resorts chair, said: “The board remains excited to continue to lead MGM Resorts as a standalone company. Our leading position in Las Vegas, our best-in-class regional properties and BetMGM’s continued momentum highlight the value we bring to our shareholders.
“In addition, our international portfolio of MGM China and the significant opportunity ahead with MGM Osaka support a clear path to increasing shareholder value.”
The collapse of People Inc’s takeover of MGM comes as land-based and online rival Caesars Entertainment is the target of an acquisition by Fertitta Entertainment.
Fertitta bid $31 per share in May, with the all-cash transaction valuing the operator at $17.6bn, including debt. Caesars shareholders backed the deal this week.