People Inc. proposes to acquire the remaining shares of MGM Resorts, valuing the casino giant at over $18 billion, including debt.
People Inc., an entity controlled by media executive Barry Diller, has formally proposed to acquire the shares of MGM Resorts International that it does not already own. The offer values the casino and hospitality company at over $18 billion, including debt.
Offer Details
According to a statement released by People Inc., the entity has offered to purchase the remaining 73.9% of MGM Resorts' outstanding stock for $48.30 per share.
The offer represents a 10.6% premium over the company's closing stock price on the previous Friday. The total transaction is valued at approximately $18.8 billion, including the assumption of MGM Resorts' debt. People Inc. stated that it expects to fund the acquisition using cash on hand, along with additional debt and equity financing commitments.
Current Ownership
People Inc. currently owns 26.1% of MGM Resorts' outstanding stock, which is valued at $2.9 billion, according to FactSet. The entity began investing in MGM Resorts approximately six years ago.
Background
Barry Diller, chairman of IAC and Expedia Group, cited "real-world assets that AI cannot easily replicate or disintermediate" and "exceptional digital growth opportunities" as reasons for the investment. MGM Resorts operates several Las Vegas casino and hotel properties, including Bellagio, Mandalay Bay, and Luxor.
Response
MGM Resorts did not immediately respond to a request for comment. If the transaction proceeds, MGM Resorts would become a privately held company controlled by People Inc. The offer was first reported by DealBook, citing sources familiar with the matter.