SouthernWorldwide.com – Barry Diller’s People Inc. has made an offer to acquire the remaining shares of MGM Resorts, a move that values the iconic casino and resort operator at over $18 billion. This proposition follows People Inc.’s prior acquisition of a significant 26.1% stake in the company.
People Inc., formerly known as IAC and the proprietor of well-known publications such as People magazine, initially began its investment in MGM Resorts approximately six years ago. This information was detailed in a company statement released on Monday.
The current offer from People Inc. stands at $48.30 per share in cash. This represents a premium of 10.6% over MGM Resorts’ closing price on Friday, signaling a strong intent to complete the acquisition.
In a released statement, Barry Diller expressed his rationale for the acquisition. He highlighted that MGM Resorts, which operates prominent Las Vegas properties including the Bellagio and Luxor, is particularly attractive due to the nature of the experiences it offers. These are experiences that artificial intelligence is unlikely to be able to replicate or substitute.
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Should this proposed deal materialize, MGM Resorts would transition from being a publicly traded entity to a private company. It would then be under the control of People Inc., marking a significant shift in its corporate structure.
“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. That conviction has only strengthened over time,” Diller stated, underscoring his long-term belief in MGM’s business model.
Currently, People Inc. holds a substantial 26.1% ownership of MGM Resorts’ outstanding stock. This stake alone is valued at approximately $2.9 billion, according to data from FactSet.
People Inc. has indicated that it anticipates funding the transaction through a combination of its existing cash reserves and commitments for additional debt and equity financing. This suggests a well-planned financial strategy to support the acquisition.
