People Inc. Proposes $48.30 Cash Bid to Take MGM Resorts Private
MGM•Barry Diller’s People Inc. has offered $48.30 per share in cash to acquire MGM Resorts for $18 billion, including assumption of $6 billion of debt, representing a 10% premium. With its existing 26.1% stake, People Inc. would hold a 50.1% controlling interest post-transaction.
1. Offer Terms
Barry Diller’s People Inc. has submitted an all-cash bid of $48.30 per share to take MGM Resorts private, valuing the deal at $18 billion plus assumption of $6 billion in debt. The proposal covers the remaining 73.9% of shares and represents roughly a 10% premium to the stock’s last closing price, offering public shareholders immediate cash value.
2. Ownership and Control
People Inc. already holds a 26.1% equity stake in MGM Resorts along with two board seats, one occupied by Diller, providing significant strategic leverage and deterring competing offers. Upon closing, the firm’s ownership would increase to 50.1%, granting it controlling interest to steer MGM’s operations as a private company.
3. Strategic Rationale and Next Steps
The privatization aims to unlock MGM’s underlying value by removing public market constraints and enabling faster decision-making on asset optimization and growth initiatives. Following the recent rebranding from IAC to People Inc., the company is focused on executing the transaction, securing board approval, and obtaining shareholder consent to finalize the deal.
