People Inc., chaired by media mogul Barry Diller, has submitted an offer to buy MGM Resorts International in a proposed deal that would value the casino giant at more than $18bn.
The company formerly known as IAC, which owns publications such as People magazine, already holds shares equating to 26.1% of MGM Resorts. In a statement on Monday, it announced it has lodged a non-binding proposal to acquire all remaining available shares that it does not already own for $48.30 per share in cash, representing a premium of 24.1% to the volume-weighted average price of MGM common stock for the 30 trading days ending on May 29, 2026.
People Inc. said that it expects to own just over 50.1% of the equity of the company, with other investors (which may include existing shareholders of MGM) holding minority interests, and to ultimately control the MGM business. If approved by the MGM Resorts board of directors and all relevant stakeholders, the majority acquisition would take the company private.
The formal announcement of the take-private MGM bid comes just days after fellow Las Vegas casino gaming titan Caesars Entertainment announced a definitive agreement to be bought by billionaire business magnate Tilman Fertitta’s holding company, Fertitta Entertainment, in an all-cash deal valued at approximately $17.6bn.
People calls MGM Resorts AI-resistant and undervalued
MGM Resorts International owns and operates numerous marquee properties on the Vegas strip, such as the Bellagio and the MGM Grand, as well as various brick-and-mortar casinos in other U.S. states, China, and other countries. It is also a 50% co-owner of BetMGM alongside British company Entain.
In a statement, People Inc. Chairman Diller said that his company’s belief in the prosperity of MGM Resorts has only strengthened over time, and suggested that the operator is significantly undervalued as of today.
“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,” Diller 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.
Public company status limits MGM, claims Diller
In a letter sent to MGM Resorts shareholders, Diller wrote that he and his company believe that the casino operator’s full potential is not being realized. “It will be difficult to correct this situation in MGM’s current form as a public company,” he asserted.
“People Incorporated will be a good steward for MGM’s assets, given our large stake in the business today and our deep familiarity with the business,” he opined. “MGM shareholders will receive attractive value for their shares, fully de-risking their investment at a compelling return.”
Diller added that given People Inc.’s status as a large shareholder and its substantial knowledge of MGM, it expects to complete all due diligence and financing quickly to complete the deal. People Inc’s takeover plan intends to keep MGM Resorts’ current management team, including Chief Executive Officer Bill Hornbuckle, in charge of leading the business.
Diller is currently a board member at MGM Resorts International but stressed in his letter that he would recuse himself from any deliberations regarding this transaction or any alternative.
MGM Resorts confirmed receipt of the offer in its own statement on Monday. It emphasized that it will carefully review and consider the proposal to determine the course of action that it believes is in the best interests of the company and its shareholders. “The company cannot provide assurances that such proposal or any subsequent proposal will result in an agreement or a transaction being reached or, if so, as to the timing, price or other terms and conditions of any such agreement,” it added.
