MGM Resorts falls after Barry Diller's People withdraws buyout proposal
MGM•MGM Resorts shares fell 8.38% in premarket trading after Barry Diller's People Inc. withdrew its proposal to buy the casino operator's remaining public shares for $48.30 each, which valued MGM at more than $18 billion.
1. Proposal withdrawn
People Inc., which owns about 27% of MGM Resorts, withdrew its proposal to buy the remaining public shares for $48.30 each. The proposal valued MGM at more than $18 billion.
2. MGM business context
MGM has relied on growth in its China assets and digital operations in recent quarters amid sluggish footfalls at its Las Vegas properties. Eleven of 24 brokerages rate the stock buy or higher, 11 rate it hold and two rate it sell or lower; the median price target is $48.30.
