Barry Diller’s People Inc. is set to acquire the remaining shares of MGM Resorts, having already secured a 26.1% ownership in the Las Vegas-based casino and resort giant. This acquisition values the company at over $18 billion.
Previously known as IAC, People Inc., which also owns media outlets like People magazine, began its investment journey with MGM Resorts approximately six years ago, as revealed in a company announcement made on Monday. The current offer stands at $48.30 per share in cash, representing a 10.6% premium over MGM Resorts’ stock price last Friday.
Diller expressed that MGM Resorts, the owner of iconic Las Vegas properties such as the Bellagio and Luxor, is an appealing investment due to the unique experiences it provides, which remain resilient against the encroachment of artificial intelligence. Should the acquisition proceed, MGM Resorts would transition into a privately held entity under People Inc.’s control.
“Our initial investment in MGM nearly six years ago was driven by the belief that it represents a distinctive business with tangible assets not easily replicated or disrupted by AI, alongside significant digital growth potential. This belief has only solidified over time,” Diller stated.
MGM Resorts has yet to issue a statement in response to the proposal.
According to FactSet data, People Inc.’s 26.1% stake in MGM Resorts is currently valued at $2.9 billion. Diller’s firm plans to finalize the acquisition using available cash, supplemented by additional debt and equity financing arrangements.
